Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 07, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | CAROLINA FINANCIAL CORP | |
Entity Central Index Key | 870,385 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | Yes | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,611,363 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 27,327 | $ 25,254 |
Interest-bearing cash | 54,751 | 55,998 |
Cash and cash equivalents | 82,078 | 81,252 |
Securities available-for-sale (cost of $807,672 at June 30, 2018 and $736,975 at December 31, 2017) | 804,968 | 743,239 |
Federal Home Loan Bank stock, at cost | 19,019 | 19,065 |
Other investments | 3,429 | 3,446 |
Derivative assets | 6,001 | 2,803 |
Loans held for sale | 39,473 | 35,292 |
Loans receivable, net of allowance for loan losses of $12,987 at June 30, 2018 and $11,478 at December 31, 2017 | 2,414,234 | 2,308,050 |
Premises and equipment, net | 62,530 | 61,407 |
Accrued interest receivable | 12,664 | 11,992 |
Real estate acquired through foreclosure, net | 1,726 | 3,106 |
Deferred tax assets, net | 6,073 | 2,436 |
Mortgage servicing rights | 23,626 | 21,003 |
Cash value life insurance | 57,982 | 57,195 |
Core deposit intangible | 18,003 | 19,601 |
Goodwill | 127,592 | 127,592 |
Other assets | 13,693 | 21,538 |
Total assets | 3,693,091 | 3,519,017 |
Liabilities [Abstract] | ||
Noninterest-bearing deposits | 577,568 | 525,615 |
Interest-bearing deposits | 2,131,230 | 2,079,314 |
Total deposits | 2,708,798 | 2,604,929 |
Short-term borrowed funds | 354,500 | 340,500 |
Long-term debt | 46,347 | 72,259 |
Derivative liabilities | 129 | 156 |
Drafts outstanding | 10,454 | 7,324 |
Advances from borrowers for insurance and taxes | 4,558 | 3,005 |
Accrued interest payable | 1,560 | 1,126 |
Reserve for mortgage repurchase losses | 1,592 | 1,892 |
Dividends payable to shareholders | 1,354 | 1,051 |
Accrued expenses and other liabilities | 12,015 | 11,394 |
Total Liability | 3,141,307 | 3,043,636 |
Stockholders' equity: | ||
Preferred stock, par value $.01; 1,000,000 shares authorized at June 30, 2018 and December 31, 2017; no shares issued or outstanding | ||
Common stock, par value $.01; 50,000,000 shares and 25,000,000 shares authorized at June 30, 2018 and December 31, 2017, respectively; 22,570,182 and 21,022,202 issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 226 | 210 |
Additional paid-in capital | 412,300 | 348,037 |
Retained earnings | 139,799 | 123,537 |
Accumulated other comprehensive income (loss), net of tax | (541) | 3,597 |
Total stockholders' equity | 551,784 | 475,381 |
Total liabilities and stockholders' equity | $ 3,693,091 | $ 3,519,017 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Securities available for sale at cost | $ 807,672 | $ 736,975 |
Loans, allowance for loan losses | $ 12,987 | $ 11,478 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 25,000,000 |
Common stock, shares issued | 22,570,182 | 21,022,202 |
Common stock, shares outstanding | 22,570,182 | 21,022,202 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income | ||||
Loans | $ 32,753 | $ 18,280 | $ 64,416 | $ 33,247 |
Investment securities | 6,359 | 3,661 | 12,066 | 6,214 |
Dividends from Federal Home Loan Bank stock | 263 | 115 | 438 | 216 |
Other interest income | 102 | 67 | 234 | 115 |
Total interest income | 39,477 | 22,123 | 77,154 | 39,792 |
Interest expense | ||||
Deposits | 4,248 | 2,098 | 7,891 | 3,790 |
Short-term borrowed funds | 1,705 | 429 | 2,958 | 784 |
Long-term debt | 619 | 498 | 1,269 | 850 |
Total interest expense | 6,572 | 3,025 | 12,118 | 5,424 |
Net interest income | 32,905 | 19,098 | 65,036 | 34,368 |
Provision for loan losses | 559 | 559 | ||
Net interest income after provision for loan losses | 32,346 | 19,098 | 64,477 | 34,368 |
Noninterest income | ||||
Mortgage banking income | 4,215 | 4,289 | 8,017 | 7,897 |
Deposit service charges | 1,988 | 998 | 4,012 | 1,856 |
Net gain (loss) on sale of securities | (746) | 621 | (1,443) | 806 |
Fair value adjustments on interest rate swaps | 451 | (69) | 1,255 | (127) |
Net increase in cash value life insurance | 385 | 281 | 775 | 492 |
Mortgage loan servicing income | 2,090 | 1,604 | 4,114 | 3,170 |
Other | 2,644 | 1,081 | 4,346 | 1,941 |
Total noninterest income | 11,027 | 8,805 | 21,076 | 16,035 |
Noninterest expense | ||||
Salaries and employee benefits | 13,541 | 9,255 | 27,210 | 17,864 |
Occupancy and equipment | 4,094 | 2,439 | 7,747 | 4,621 |
Marketing and public relations | 322 | 416 | 698 | 797 |
FDIC insurance | 265 | 75 | 520 | 175 |
Recovery of mortgage loan repurchase losses | (150) | (225) | (300) | (450) |
Legal expense | 157 | 151 | 233 | 216 |
Other real estate (income) expense, net | 105 | 26 | 11 | 45 |
Mortgage subservicing expense | 568 | 505 | 1,132 | 991 |
Amortization of mortgage servicing rights | 889 | 665 | 1,868 | 1,335 |
Merger related expenses | 506 | 279 | 15,216 | 1,599 |
Other | 4,074 | 2,304 | 7,635 | 4,283 |
Total noninterest expense | 24,371 | 15,890 | 61,970 | 31,476 |
Income before income taxes | 19,002 | 12,013 | 23,583 | 18,927 |
Income tax expense (benefit) | 4,036 | 2,673 | 4,561 | 4,684 |
Net income | $ 14,966 | $ 9,340 | $ 19,022 | $ 14,243 |
Earnings per common share: | ||||
Basic (per share) | $ 0.7 | $ 0.58 | $ 0.91 | $ 0.95 |
Diluted (per share) | 0.7 | 0.58 | 0.9 | 0.94 |
Dividend (per share) | $ 0.06 | $ 0.04 | $ 0.11 | $ 0.08 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 21,243,094 | 16,029,332 | 20,961,182 | 14,980,349 |
Diluted (in shares) | 21,454,039 | 16,180,171 | 21,174,936 | 15,144,796 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Consolidated Statements Of Comprehensive Income | ||||
Net income | $ 14,966 | $ 9,340 | $ 19,022 | $ 14,243 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gain (loss) on securities | (1,759) | 4,650 | (8,323) | 8,125 |
Tax effect | 440 | (1,674) | 2,081 | (2,925) |
Reclassification adjustment for (gain) loss included in earnings | 746 | (621) | 1,443 | (806) |
Tax effect | (187) | 224 | (361) | 290 |
Unrealized gain (loss) on interest rate swaps designated as cash flow hedges | 356 | (389) | 1,363 | (251) |
Tax effect | (89) | 140 | (341) | 90 |
Other comprehensive income, net of tax | (493) | 2,330 | (4,138) | 4,523 |
Comprehensive income | $ 14,473 | $ 11,670 | $ 14,884 | $ 18,766 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Beginning Balance at Dec. 31, 2016 | $ 125 | $ 66,156 | $ 98,451 | $ (1,542) | $ 163,190 |
Beginning Balance (in shares) at Dec. 31, 2016 | 12,548,328 | ||||
Issuance of common stock, net of offering expenses | $ 18 | 47,653 | 47,671 | ||
Issuance of common stock, net of offering expenses (in shares) | 1,807,143 | ||||
Stock issued - Greer Bancshares Incorporated acquisition | $ 18 | 54,205 | 54,223 | ||
Stock issued - Greer Bancshares Incorporated acquisition (in shares) | 1,789,523 | ||||
Stock awards | $ 1 | 108 | 109 | ||
Stock awards (in shares) | 68,385 | ||||
Vested stock awards surrendered in cashless exercise | (365) | (1,306) | (1,671) | ||
Vested stock awards surrendered in cashless exercise (in shares) | (56,436) | ||||
Stock-based compensation expense, net | 752 | 752 | |||
Net income | 14,243 | 14,243 | |||
Dividends declared to stockholders | (1,222) | (1,222) | |||
Other comprehensive income, net of tax | 4,523 | 4,523 | |||
Ending Balance at Jun. 30, 2017 | $ 162 | 168,509 | 110,166 | 2,981 | 281,818 |
Ending Balance (in shares) at Jun. 30, 2017 | 16,156,943 | ||||
Beginning Balance at Dec. 31, 2017 | $ 210 | 348,037 | 123,537 | 3,597 | 475,381 |
Beginning Balance (in shares) at Dec. 31, 2017 | 21,022,202 | ||||
Issuance of common stock, net of offering expenses | $ 15 | 63,007 | 63,022 | ||
Issuance of common stock, net of offering expenses (in shares) | 1,500,000 | ||||
Stock awards | $ 1 | 113 | 114 | ||
Stock awards (in shares) | 58,005 | ||||
Vested stock awards surrendered in cashless exercise | (246) | (353) | (599) | ||
Vested stock awards surrendered in cashless exercise (in shares) | (15,089) | ||||
Stock options exercised | 56 | 56 | |||
Stock options exercised (in shares) | 5,064 | ||||
Stock-based compensation expense, net | 1,333 | 1,333 | |||
Net income | 19,022 | 19,022 | |||
Dividends declared to stockholders | (2,407) | (2,407) | |||
Other comprehensive income, net of tax | (4,138) | (4,138) | |||
Ending Balance at Jun. 30, 2018 | $ 226 | $ 412,300 | $ 139,799 | $ (541) | $ 551,784 |
Ending Balance (in shares) at Jun. 30, 2018 | 22,570,182 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 19,022 | $ 14,243 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for loan losses | 559 | |
Amortization of unearned discount/premiums on investments, net | 2,520 | 1,762 |
Amortization of deferred loan fees | (981) | (588) |
Accretion of acquired loans | (4,817) | (1,451) |
Amortization of core deposit intangibles | 1,598 | 302 |
(Gain) loss on sale of available-for-sale securities, net | 1,443 | (806) |
Mortgage banking income | (8,017) | (7,897) |
Originations of loans held for sale | (450,286) | (433,852) |
Proceeds from sale of loans held for sale | 454,122 | 437,191 |
Amortization of fair value adjustments on subordinated debentures | 88 | 31 |
Recovery of mortgage loan repurchase losses | (300) | (450) |
Mortgage repurchase loan losses paid, net of recoveries | (76) | |
Fair value adjustments on interest rate swaps | (1,255) | 127 |
Stock-based compensation | 1,333 | 752 |
Increase in cash surrender value of bank owned life insurance | (775) | (492) |
Depreciation | 2,001 | 1,219 |
Loss on disposals of premises and equipment | 8 | 3 |
(Gain) on sale of real estate acquired through foreclosure | (53) | (21) |
Write-down of real estate acquired through foreclosure | 126 | |
Originations of mortgage servicing assets | (4,491) | (2,995) |
Amortization of mortgage servicing assets | 1,868 | 1,335 |
Accrued interest receivable | (672) | (568) |
Other assets | 7,158 | (2,276) |
Increase (decrease) in: | ||
Accrued interest payable | 434 | 170 |
Dividends payable to shareholders | 303 | 144 |
Accrued expenses and other liabilities | (2,041) | (9,511) |
Cash flows (used in) provided by operating activities | 18,895 | (3,704) |
Activity in available-for-sale securities: | ||
Purchases | (215,651) | (144,383) |
Maturities, payments and calls | 57,796 | 24,591 |
Proceeds from sales | 85,300 | 81,021 |
Increase in other investments | (14) | |
Decrease in Federal Home Loan Bank stock | 46 | 2,122 |
Increase in loans receivable, net | (101,036) | (61,160) |
Purchase of premises and equipment | (3,146) | (2,910) |
Proceeds from disposals of premises and equipment | 1 | |
Proceeds from sale of real estate acquired through foreclosure | 1,398 | 582 |
Net cash received for acquisitions | 37,764 | |
Cash flows used in investing activities | (175,292) | (62,387) |
Cash flows from financing activities: | ||
Net increase in deposit accounts | 103,869 | 94,403 |
Net increase in Federal Home Loan Bank advances | (12,000) | (53,500) |
Net (decrease) increase in drafts outstanding | 3,130 | (2,354) |
Net increase in advances from borrowers for insurance and taxes | 1,553 | 1,626 |
Cash dividends paid on common stock | (2,407) | (1,078) |
Proceeds from exercise of stock options | 56 | |
Proceeds from issuance of common stock | 63,022 | 47,671 |
Cash flows provided by financing activities | 157,223 | 86,768 |
Net increase (decrease) in cash and cash equivalents | 826 | 20,677 |
Cash and cash equivalents at beginning of year | 81,252 | 24,352 |
Cash and cash equivalents at end of year | 82,078 | 45,029 |
Supplemental disclosure | ||
Cash paid for Interest on deposits and borrowed funds | 11,684 | 4,996 |
Cash paid for Income taxes paid, net of refunds | 63 | 4,025 |
Noncash investing and financing activities: | ||
Transfer of loans receivable to real estate acquired through foreclosure | 91 | 757 |
Acquisitions: | ||
Fair value of tangible assets acquired | 380,011 | |
Other intangible assets acquired | 4,480 | |
Liabilities assumed | 358,866 | |
Net identifiable assets acquired over liabilities assumed | 25,625 | |
Common stock issued in acquisition | 54,223 | |
Goodwill | $ 33,020 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Carolina Financial Corporation (“Carolina Financial” or the “Company”), incorporated under the laws of the State of Delaware, is a financial holding company with one wholly owned subsidiary, CresCom Bank (the “Bank”). CresCom Bank operates five wholly-owned subsidiaries, Crescent Mortgage Company, Carolina Services Corporation of Charleston (“Carolina Services”), DTFS, Inc., CresCom Insurance, LLC and CresCom Leasing, LLC. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. In consolidation, all material intercompany accounts and transactions have been eliminated. The results of operations of the businesses acquired in transactions accounted for as purchases are included only from the dates of acquisition. All majority-owned subsidiaries are consolidated unless control is temporary or does not rest with the Company. At June 30, 2018, statutory business trusts (“Trusts”) created or acquired by the Company had outstanding trust preferred securities with an aggregate par value of $36.0 million. The principal assets of the Trusts are $37.1 million of the Company’s subordinated debentures with identical rates of interest and maturities as the trust preferred securities. The Trusts have issued $1.1 million of common securities to the Company and are included in other investments in the accompanying consolidated balance sheets. The Trusts are not consolidated subsidiaries of the Company. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission (the “SEC”) on March 16, 2018. There have been no significant changes to the accounting policies as disclosed in the Company’s Form 10-K. Management’s Estimates The financial statements are prepared in accordance with GAAP, which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, including valuation for impaired loans, the valuation of real estate acquired in connection with foreclosure or in satisfaction of loans, the valuation of securities, the valuation of derivative instruments, the valuation of assets acquired and liabilities assumed in business combinations, the valuation of mortgage servicing rights, the determination of the reserve for mortgage loan repurchase losses, asserted and unasserted legal claims and deferred tax assets or liabilities. In connection with the determination of the allowance for loan losses and foreclosed real estate, management obtains independent appraisals for significant properties. Management must also make estimates in determining the estimated useful lives and methods for depreciating premises and equipment. Management uses available information to recognize losses on loans and foreclosed real estate. However, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and foreclosed real estate. It is possible that the allowance for loan losses and valuation of foreclosed real estate may change materially in the near term. Earnings Per Share Basic earnings per share (“EPS”) represents income available to common stockholders divided by the weighted-average number of shares outstanding during the period. Diluted earnings per share reflects additional shares that would have been outstanding if dilutive potential shares had been issued. Potential shares that may be issued by the Company relate solely to outstanding stock options, restricted stock (non-vested shares), restricted stock units (“RSUs”) and warrants, and are determined using the treasury stock method. Under the treasury stock method, the number of incremental shares is determined by assuming the issuance of stock for the outstanding stock options, unvested restricted stock and RSUs, and warrants, reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price for the period of the Company’s stock. Subsequent Events Subsequent events are material events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the statement of financial condition but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and no subsequent events were identified that required accrual or disclosure . Reclassification Certain reclassifications of accounts reported for previous periods have been made in these consolidated financial statements. Such reclassifications had no effect on stockholders’ equity or the net income as previously reported. Recently Adopted Accounting Pronouncements During the first quarter of 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2016-01, Recognition and Measurement of Financial Assets and Liabilities. The amendments included within this standard, which are applied prospectively, require the Company to disclose fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using an exit price notion. Prior to adopting the amendments included in the standard, the Company was allowed to measure fair value under an entry price notion. Refer to Note 8 -Estimated Fair Value of Financial Instruments for more information. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 updates the new revenue standard by clarifying the principal versus agent implementation guidance, but does not change the core principle of the new standard. The updates to the principal versus agent guidance: (i) require an entity to determine whether it is a principal or an agent for each distinct good or service (or a distinct bundle of goods or services) to be provided to the customer; (ii) illustrate how an entity that is a principal might apply the control principle to goods, services, or rights to services, when another party is involved in providing goods or services to a customer and (iii) clarify that the purpose of certain specific control indicators is to support or assist in the assessment of whether an entity controls a good or service before it is transferred to the customer, provide more specific guidance on how the indicators should be considered, and clarify that their relevance will vary depending on the facts and circumstances. The Company’s revenue is primarily comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. The Company has evaluated ASU 2016-08 and 2014-09 and determined that this guidance did not have a material impact on the way the Company currently recognizes revenue or the way it recognizes expenses related to those revenue streams. The Company adopted ASU No. 2014-09 and its related amendments on its required effective date of January 1, 2018 utilizing the modified retrospective approach. Since there was no net income impact upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Consistent with the modified retrospective approach, the Company did not adjust prior period amounts. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718) (“ASU 2017-09”). ASU 2017-09 provides clarity when applying guidance to a change to the terms or conditions of a share-based payment award. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company adopted ASU No. 2017-09 and its related amendments on its required effective date of January 1, 2018. The amendments will be applied prospectively to an award modified on or after the adoption date. The Company has determined that this guidance did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). ASU 2017-12 amends the requirements of the Derivatives and Hedging Topic of the Accounting Standards Codification (“ASC”) to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Cost (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). ASU 2017-08 shortens the amortization period of the premium for certain callable debt securities, from the contractual maturity date to the earliest call date. The amendments do not require an accounting change for securities held at a discount; an entity will continue to amortize to the contractual maturity date the discount related to callable debt securities. The amendments apply to the amortization of premiums on callable debt securities with explicit, non-contingent call features that are callable at fixed prices on preset dates. For public business entities, ASU 2017-08 is effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for all entities, including in an interim period. The amendments should be applied on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the amendments are adopted. The Company has determined that this guidance will not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 applies a right-of-use (“ROU”) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. At inception, lessees must classify all leases as either finance or operating based on five criteria. Balance sheet recognition of finance and operating leases is similar, but the pattern of expense recognition in the income statement, as well as the effect on the statement of cash flows, differs depending on the lease classification. For public business entities, the amendments in ASU 2016-02 are effective for interim and annual periods beginning after December 15, 2018. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach which includes a number of optional practical expedients that entities may elect to apply. The Company is currently evaluating the provisions of ASU 2016-02 in relation to its outstanding leases to determine the potential impact the new standard will have to the Company’s financial statements. The Company expects the new guidance will require these lease arrangements to be recognized on the consolidated statements of condition as a right-of-use asset and a corresponding lease liability. Therefore, the Company’s preliminary evaluation indicates the provisions of ASU No. 2016-02 are expected to impact the Company’s consolidated statements of condition, as well as our regulatory capital ratios. However, the Company continues to evaluate the extent of potential impact the new guidance will have on the Company’s consolidated financial statements. The Company is nearing completion of identifying a complete inventory of arrangements containing a lease and accumulating the lease data necessary to apply the amended guidance. In addition, the Company has obtained new software to aid in the transition to the new leasing guidance. In January 2017, the FASB issued ASU No. 2017-04, Intangible-Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test under Accounting Standards Codification ASC 350 and eliminating Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those years. The amendments should be adopted prospectively and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has determined that this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in earlier recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is continuing to assess the impact that this new guidance will have on its consolidated financial statements through its implementation team. The team has assigned roles and responsibilities, key tasks to complete, and a general timeline to be followed. The implementation team meets periodically to discuss the latest developments and ensure progress is being made. The team also keeps current on evolving interpretations and industry practices related to ASU 2016-13 via webcasts, publications, and conferences. The Company has engaged an outside consultant to assist with the methodology review and validation, as well as other key aspects of implementing the standard. The Company’s preliminary evaluation indicates the provisions of ASU No. 2016-13 are expected to impact the Company’s consolidated financial statements, in particular the level of the reserve for credit losses. However, the Company continues to evaluate the extent of the potential impact. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 6 Months Ended |
Jun. 30, 2018 | |
Acquisitions: | |
BUSINESS COMBINATION | NOTE 2 – BUSINESS COMBINATIONS On November 1, 2017, the Company acquired all of the common stock of First South Bancorp, Inc., the holding company for First South Bank (“First South”). Under the terms of the merger agreement, each share of First South common stock was converted into the right to receive 0.5064 shares of the Company’s common stock. The following table presents a summary of total consideration paid by the Company at the acquisition date (dollars in thousand). Common stock issued (4,822,540 shares at $36.85 per share) $ 177,711 Cash in lieu of fractional shares and fair value of stock options 983 Total consideration paid $ 178,694 The assets acquired and liabilities assumed from First South were recorded at their fair value as of the closing date of the merger. Fair values were preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding the closing date fair values became available. Goodwill of $90.3 million was recorded at the time of the acquisition. The following table summarizes the consideration paid by the Company in the merger with First South and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. As Reported by Fair Value As Recorded by November 1, 2017 First South Adjustments the Company Assets (In thousands) Cash and cash equivalents $ 66,109 66,109 Securities available-for-sale 186,038 186,038 Federal Home Loan Bank stock 1,593 1,593 Loans held for sale 1,282 1,282 Loans receivable 783,779 (24,620 )(a) 759,159 Allowance for loan losses (9,495 ) 9,495 (b) — Premises and equipment 10,761 1,500 (c) 12,261 Foreclosed assets 1,922 (556 )(d) 1,366 Core deposit intangible 1,410 11,090 (e) 12,500 Deferred tax asset, net 3,961 238 (f) 4,199 Other assets 33,552 (3,417 )(g) 30,135 Total assets acquired $ 1,080,912 (6,270 ) 1,074,642 Liabilities Deposits $ 952,573 78 (h) 952,651 Borrowings 26,810 (1,439 )(i) 25,371 Other liabilities 8,515 (284 )(j) 8,231 Total liabilities assumed $ 987,898 (1,645 ) 986,253 Net identifiable assets acquired over liabilities assumed 88,389 Total consideration paid 178,694 Goodwill $ 90,305 Explanation of fair value adjustments: (a) Represents the amount necessary to adjust loans to their fair value due to interest rate and credit factors. (b) Reflects the elimination of First South’s historical allowance for loan losses. (c) Reflects fair value adjustments on acquired branch and administrative offices based on the Company’s assessment. (d) Reflects the impact of acquisition accounting fair value adjustments. (e) Reflects the fair value adjustment to record the estimated core deposit intangible based on the Company’s assessment. (f) Reflects the tax impact of acquisition accounting fair value adjustments. (g) Reflects the fair value adjustment based on the Company’s evaluation of acquired other assets. (h) Represents the fair value adjustment due to interest rate factors. (i) Represents the fair value adjustment due to interest rate factors. (j) Reflects the fair value adjustment based on the Company’s evaluation of acquired other liabilities. Acquisition of Greer Bancshares Incorporated On March 18, 2017, the Company completed its acquisition of Greer Bancshares Incorporated (“Greer”), the holding company for Greer State Bank. Under the terms of the merger agreement, each share of Greer common stock was converted into the right to receive $18.00 in cash or 0.782 shares of the Company’s common stock, or a combination thereof, subject to certain limitations. The following table presents a summary of total consideration paid by the Company at the acquisition date (dollars in thousand). Common stock issued (1,789,523 shares at $30.30 per share) $ 54,223 Cash payments to common stockholders 4,422 Total consideration paid $ 58,645 The assets acquired and liabilities assumed from Greer were recorded at their fair value as of the closing date of the merger. Fair values were preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding the closing date fair values became available. Goodwill of $33.0 million was recorded at the time of the acquisition. The following table summarizes the consideration paid by the Company in the merger with Greer and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. As Reported Fair Value As Recorded by March 18, 2017 by Greer Adjustments the Company Assets (In thousands) Cash and cash equivalents $ 42,187 — 42,187 Securities available for sale 121,374 — 121,374 Loans held for sale 105 — 105 Loans receivable 205,209 (10,559 )(a) 194,650 Allowance for loan losses (3,198 ) 3,198 (b) — Premises and equipment 3,928 4,202 (c) 8,130 Foreclosed assets 42 — 42 Core deposit intangible — 4,480 (d) 4,480 Deferred tax asset, net 3,831 (1,434 )(e) 2,397 Other assets 11,367 (241 )(f) 11,126 Total assets acquired $ 384,845 (354 ) 384,491 Liabilities Deposits $ 310,866 200 (g) 311,066 Borrowings 43,712 (3,510 )(h) 40,202 Other liabilities 7,086 512 (i) 7,598 Total liabilities assumed $ 361,664 (2,798 ) 358,866 Net identifiable assets acquired over liabilities assumed 25,625 Total consideration paid 58,645 Goodwill $ 33,020 Explanation of fair value adjustments: (a) Adjustment represents the amount necessary to adjust loans to their fair value due to interest rate and credit factors. (b) Adjustment reflects the elimination of Greer’s historical allowance for loan losses. (c) Adjustment reflects fair value adjustments on acquired branch and administrative offices based on third party appraisals. (d) Adjustment reflects the fair value adjustment to record the estimated core deposit intangible based on the Company’s third party valuation report. (e) Adjustment reflects the tax impact of acquisition accounting fair value adjustments. (f) Adjustment reflects the fair value adjustment based on the Company’s evaluation of acquired other assets. (g) Adjustment represents the fair value adjustment due to interest rate factors. (h) Adjustment represents the fair value adjustment due to interest rate factors. (i) Adjustment reflects the fair value adjustment based on the Company’s evaluation of acquired other liabilities. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE 3 – SECURITIES The amortized cost, gross unrealized gains, gross unrealized losses and fair value of securities available-for-sale at June 30, 2018 and December 31, 2017 follows: June 30, 2018 December 31, 2017 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Securities available-for-sale: (In thousands) Municipal securities $ 200,526 2,508 (1,457 ) 201,577 240,904 6,790 (344 ) 247,350 US government agencies 13,000 — (55 ) 12,945 11,983 34 (9 ) 12,008 Collateralized loan obligations 172,154 404 (50 ) 172,508 128,080 581 (18 ) 128,643 Corporate securities 6,902 90 (4 ) 6,989 6,891 115 — 7,006 Mortgage-backed securities: Agency 236,826 504 (3,574 ) 233,757 243,075 1,234 (714 ) 243,595 Non-agency 167,028 540 (1,684 ) 165,884 94,834 551 (260 ) 95,125 Total mortgage-backed securities 403,854 1,044 (5,258 ) 399,641 337,909 1,785 (974 ) 338,720 Trust preferred securities 11,236 1,757 (1,686 ) 11,308 11,208 1,132 (2,828 ) 9,512 Total $ 807,672 5,803 (8,510 ) 804,968 736,975 10,437 (4,173 ) 743,239 The Company had no held-to-maturity securities as of June 30, 2018 or December 31, 2017. The amortized cost and fair value of debt securities by contractual maturity at June 30, 2018 follows: At June 30, 2018 Amortized Fair Cost Value (In thousands) Securities available-for-sale: Less than one year $ 309 309 One to five years 9,161 9,149 Six to ten years 111,914 111,531 After ten years 686,288 683,979 Total $ 807,672 804,968 The contractual maturity dates of the securities were used for mortgage-backed securities and asset-backed securities. No estimates were made to anticipate principal repayments. The following table summarizes the gross realized gains and losses from sales of investment securities available-for-sale for the periods indicated. For the Three Months For the Six Months Ended June 30, Ended June 30, 2018 2017 2018 2017 (In thousands) Proceeds $ 34,122 43,324 85,300 81,021 Realized gains $ 55 647 69 1,020 Realized losses (801 ) (26 ) (1,512 ) (214 ) Total investment securities gains (losses), net $ (746 ) 621 (1,443 ) 806 At June 30, 2018, the Company had pledged securities with a market value of $89.4 million as collateral for Federal Home Loan Bank (“FHLB”) advances. At June 30, 2018, the Company has pledged $178.4 million of securities to secure public agency funds. At June 30, 2018, the Company had $192.9 million of loans pledged for FRB advances. The following tables summarize gross unrealized losses on investment securities and the fair market value of the related securities at June 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. At June 30, 2018 Less than 12 Months 12 Months or Greater Total Amortized Fair Unrealized Amortized Fair Unrealized Amortized Fair Unrealized Cost Value Losses Cost Value Losses Cost Value Losses (In thousands) Available-for-sale: Municipal securities $ 80,659 79,430 (1,229 ) 3,574 3,346 (228 ) 84,233 82,776 (1,457 ) US government agencies 13,000 12,945 (55 ) — — — 13,000 12,945 (55 ) Collateralized loan obligations 57,909 57,859 (50 ) — — — 57,909 57,859 (50 ) Corporate securities 479 475 (4 ) — — — 479 475 (4 ) Mortgage-backed securities: Agency 170,067 167,006 (3,061 ) 19,824 19,311 (513 ) 189,891 186,317 (3,574 ) Non-agency 100,771 99,166 (1,605 ) 10,691 10,613 (78 ) 111,462 109,779 (1,684 ) Total mortgage-backed securities 270,838 266,172 (4,666 ) 30,515 29,924 (591 ) 301,353 296,096 (5,258 ) Trust preferred securities — — — 8,467 6,781 (1,686 ) 8,467 6,781 (1,686 ) Total $ 422,885 416,881 (6,004 ) 42,556 40,051 (2,505 ) 465,441 456,932 (8,510 ) At December 31, 2017 Less than 12 Months 12 Months or Greater Total Amortized Fair Unrealized Amortized Fair Unrealized Amortized Fair Unrealized Cost Value Losses Cost Value Losses Cost Value Losses (In thousands) Available-for-sale: Municipal securities $ 23,849 23,631 (218 ) 3,606 3,480 (126 ) 27,455 27,111 (344 ) US government agencies 1,681 1,672 (9 ) — — — 1,681 1,672 (9 ) Collateralized loan obligations 23,000 22,982 (18 ) — — — 23,000 22,982 (18 ) Mortgage-backed securities: Agency 107,501 107,011 (490 ) 17,484 17,260 (224 ) 124,985 124,271 (714 ) Non-agency 21,874 21,704 (170 ) 9,889 9,799 (90 ) 31,763 31,503 (260 ) Total mortgage-backed securities 129,375 128,715 (660 ) 27,373 27,059 (314 ) 156,748 155,774 (974 ) Trust preferred securities — — — 8,516 5,688 (2,828 ) 8,516 5,688 (2,828 ) Total $ 177,905 177,000 (905 ) 39,495 36,227 (3,268 ) 217,400 213,227 (4,173 ) The Company reviews its investment securities portfolio at least quarterly and more frequently when economic conditions warrant, assessing whether there is any indication of other-than-temporary impairment (“OTTI”). Factors considered in the review include estimated future cash flows, length of time and extent to which market value has been less than cost, the financial condition and near term prospect of the issuer, and our intent and ability to retain the security to allow for an anticipated recovery in market value. If the review determines that there is OTTI, then an impairment loss is recognized in earnings equal to the difference between the investment’s cost and its fair value at the balance sheet date of the reporting period for which the assessment is made, or a portion may be recognized in other comprehensive income. The fair value of investments on which OTTI is recognized then becomes the new cost basis of the investment. At June 30, 2018 and December 31, 2017, the Company had 221 and 135, respectively, individual investments available-for-sale that were in an unrealized loss position. The unrealized losses on the Company’s investments in US government-sponsored agencies, municipal securities, mortgage-backed securities (agency and non-agency), and trust preferred securities summarized above were attributable primarily to changes in interest rates. Management has performed various analyses, including cash flows testing as needed, and determined that no OTTI expense was necessary during 2018 or 2017. |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 4 – DERIVATIVES In the ordinary course of business, the Company enters into various types of derivative transactions. For its related mortgage banking activities, the Company holds derivative instruments, which consist of rate lock agreements related to expected funding of fixed-rate mortgage loans to customers (interest rate lock commitments) and forward commitments to sell mortgage-backed securities and individual fixed-rate mortgage loans. The Company’s objective in obtaining the forward commitments is to mitigate the interest rate risk associated with the interest rate lock commitments and the mortgage loans that are held for sale. Derivative instruments not related to mortgage banking activities primarily relate to interest rate swap agreements. The derivative positions of the Company at June 30, 2018 and December 31, 2017 are as follows: At June 30, At December 31, 2018 2017 Fair Notional Fair Notional Value Value Value Value (In thousands) Derivative assets: Cash flow hedges: Interest rate swaps $ 2,007 70,000 644 45,000 Non-hedging derivatives: Interest rate swaps 2,007 45,000 964 50,000 Mortgage loan interest rate lock commitments 1,476 126,031 890 98,584 Mortgage-backed securities forward sales commitments 511 25,853 305 23,401 Total derivative assets $ 6,001 266,884 2,803 216,985 Derivative liabilities: Non-hedging derivatives: Interest rate swaps — — 95 5,000 Mortgage-backed securities forward sales commitments 129 90,000 61 75,000 Total derivative liabilities $ 129 90,000 156 80,000 Non-Designated Hedges Derivative Loan Commitments and Forward Sales Commitments The Company enters into mortgage loan commitments that are also referred to as derivative loan commitments, if the loan that will result from exercise of the commitment will be held for sale upon funding. The Company enters into commitments to fund residential mortgage loans at specified rates and times in the future, with the intention that these loans will subsequently be sold in the secondary market. Outstanding derivative loan commitments expose the Company to the risk that the price of the loans arising from exercise of the loan commitment might decline from inception of the rate lock to funding of the loan due to increases in mortgage interest rates. If interest rates increase, the value of these loan commitments typically decreases. Conversely, if interest rates decrease, the value of these loan commitments typically increases. To protect against the price risk inherent in derivative loan commitments, the Company utilizes both “mandatory delivery” and “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. With a “mandatory delivery” contract, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price on or before a specified date. If the Company fails to deliver the amount of mortgages necessary to fulfill the commitment by the specified date, it is obligated to pay a “pair-off” fee, based on then-current market prices, to the investor to compensate the investor for the shortfall. With a “best efforts” contract, the Company commits to deliver an individual mortgage loan of a specified principal amount and quality to an investor if the loan to the underlying borrower closes. Generally, the price the investor will pay the seller for an individual loan is specified prior to the loan being funded (e.g., on the same day the lender commits to lend funds to a potential borrower). The Company expects that these forward loan sale commitments will experience changes in fair value opposite to the change in fair value of derivative loan commitments. Derivatives related to these commitments are recorded as either a derivative asset or a derivative liability on the balance sheet and are measured at fair value. Both the interest rate lock commitments and the forward commitments are reported at fair value, with adjustments recorded in current period earnings in “mortgage banking income” within noninterest income in the consolidated statements of operations. Interest Rate Swaps The Company enters into interest rate swaps that do not meet the hedge accounting requirements and are recorded at fair value as a derivative asset or liability. Interest rate swaps that are not designated as hedges are primarily used to more closely match the interest rate characteristics of assets and liabilities and to mitigate the risks arising from timing mismatches between assets and liabilities including duration mismatches. Fair value changes are recognized in noninterest income as “fair value adjustments on interest rate swaps.” Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using certain interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company has entered into interest rate swaps to reduce the exposure to variability in interest-related cash outflows attributable to changes in forecasted LIBOR-based FHLB borrowings. These derivative instruments are designated as cash flow hedges. The hedged item is the LIBOR portion of the series of future adjustable rate borrowings over the term of the interest rate swap. Accordingly, changes to the amount of interest payment cash flows for the hedged transactions attributable to a change in credit risk are excluded from our assessment of hedge effectiveness. The Company tests for hedging effectiveness on a quarterly basis. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. The Company has not recorded any hedge ineffectiveness since inception. Risk Management Objective of Using Derivatives When using derivatives to hedge fair value and cash flow risks, the Company exposes itself to potential credit risk from the counterparty to the hedging instrument. This credit risk is normally a small percentage of the notional amount and fluctuates as interest rates change. The Company analyzes and approves credit risk for all potential derivative counterparties prior to execution of any derivative transaction. The Company seeks to minimize credit risk by dealing with highly rated counterparties and by obtaining collateralization for exposures above certain predetermined limits. If significant counterparty risk is determined, the Company would adjust the fair value of the derivative recorded asset balance to consider such risk. |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
LOANS RECEIVABLE, NET | NOTE 5 - LOANS RECEIVABLE, NET We emphasize a range of lending services, including commercial and residential real estate mortgage loans, real estate construction loans, commercial and industrial loans, commercial leases, and consumer loans. Our customers are generally individuals and small to medium-sized businesses and professional firms that are located in or conduct a substantial portion of their business in our market areas. We have focused our lending activities primarily on the professional market, including doctors, dentists, small business to medium-sized owners and commercial real estate developers. Certain credit risks are inherent in making loans. These include prepayment risks, risks resulting from uncertainties in the future value of collateral, risks resulting from changes in economic and industry conditions, and risks inherent in dealing with individual borrowers. We attempt to mitigate repayment risks by adhering to internal credit policies and procedures. These policies and procedures include officer and customer lending limits, with approval processes for larger loans, documentation examination, and follow-up procedures for any exceptions to credit policies. Our loan approval policies provide for various levels of officer lending authority. When the amount of aggregate loans to a single borrower exceeds the maximum senior officer’s lending authority, the loan request will be considered by the management loan committee, or MLC, which is comprised of four members, all of whom are part of the senior management team of the Bank. The MLC meets weekly to approve loans with total loan commitment relationships generally exceeding $2.5 million. The loan authority of the MLC is equal to two-thirds of the legal lending limit of the Bank which is equivalent to the in-house loan limit. Total credit exposure above the in-house limit requires approval by the majority of the board of directors. We do not make any loans to any director, executive officer of the Bank, or the related interests of each, unless the loan is approved by the full Board of Directors of the Bank and is on terms not more favorable than would be available to a person not affiliated with the Bank. The following is a description of the risk characteristics of the material loan portfolio segments: Residential Mortgage Loans and Home Equity Loans Commercial Real Estate Real Estate Construction and Development Loans. Commercial Loans. The Company’s primary markets are generally concentrated in real estate lending. However, in order to diversify our lending portfolio, the Company purchases nationally syndicated commercial and industrial loans. These loans typically have terms of seven years and are generally tied to a floating rate index such as LIBOR or prime. To effectively manage this line of business, the Company has an experienced senior lending executive with relevant experience to manage this area of this segment of the loan portfolio. In addition, the Company engaged a consulting firm that specializes in syndicated loans to assist in monitoring performance analytics. As of June 30, 2018 and December 31, 2017, there were approximately $89.3 million and $75.0 million in broadly syndicated loans outstanding. Syndicated loans are grouped within commercial business loans below. The Bank began originating leases, primarily on equipment utilized for business purposes, as a result of the First South acquisition. Lease terms generally range from 12 to 60 months and include options to purchase the leased equipment at the end of the lease. Most leases provide 100% of the cost of the equipment and are secured by the leased equipment. The Company requires the leased equipment to be insured and that we be listed as a loss payee and named as an additional insured on the insurance policy. We manage credit risk associated with our lease financing loan class based upon the dollar amount of the lease and the level of credit risk. We follow a formal review process that entails analysis of the following factors: equipment value/residual value, exposure levels, jurisdiction risk, industry risk, guarantor requirements, and regulatory compliance. As of June 30, 2018 and December 31, 2017, there were approximately $25.8 million and $24.0 million in lease receivables outstanding. Lease receivables are grouped within commercial business loans below. Consumer Loans. Loans receivable, net at June 30, 2018 and December 31, 2017 are summarized by category as follows: At June 30, At December 31, 2018 2017 % of Total % of Total All Loans: Amount Loans Amount Loans (Dollars in thousands) Loans secured by real estate: One-to-four family $ 699,435 28.82 % 665,774 28.70 % Home equity 87,946 3.62 % 90,141 3.89 % Commercial real estate 940,558 38.75 % 933,820 40.26 % Construction and development 327,778 13.50 % 294,793 12.71 % Consumer loans 16,041 0.66 % 19,990 0.86 % Commercial business loans 355,463 14.65 % 315,010 13.58 % Total gross loans receivable 2,427,221 100.00 % 2,319,528 100.00 % Less: Allowance for loan losses 12,987 11,478 Total loans receivable, net $ 2,414,234 2,308,050 Loans receivable, net at June 30, 2018 and December 31, 2017 for purchased non-credit impaired loans and nonacquired loans are summarized by category as follows: At June 30, At December 31, 2018 2017 Purchased Non-Credit Impaired Loans % of Total % of Total (ASC 310-20) and Nonacquired Loans: Amount Loans Amount Loans (Dollars in thousands) Loans secured by real estate: One-to-four family $ 689,934 29.20 % 654,597 29.21 % Home equity 87,855 3.72 % 89,961 4.01 % Commercial real estate 901,372 38.15 % 891,469 39.77 % Construction and development 320,902 13.58 % 287,437 12.83 % Consumer loans 15,963 0.68 % 19,895 0.89 % Commercial business loans 346,677 14.67 % 297,754 13.29 % Total gross loans receivable 2,362,703 100.00 % 2,241,113 100.00 % Less: Allowance for loan losses 12,987 11,478 Total loans receivable, net $ 2,349,716 2,229,635 Loans receivable, net at June 30, 2018 for purchased credit impaired loans are summarized by category below. At June 30, At December 31, 2018 2017 Purchased Credit Impaired % of Total % of Total Loans (ASC 310-30): Amount Loans Amount Loans (Dollars in thousands) (Dollars in thousands) Loans secured by real estate: One-to-four family $ 9,501 14.73 % 11,177 14.25 % Home equity 91 0.14 % 180 0.23 % Commercial real estate 39,186 60.14 % 42,351 54.01 % Construction and development 6,876 10.66 % 7,356 9.38 % Consumer loans 78 0.11 % 95 0.12 % Commercial business loans 8,786 13.62 % 17,256 22.01 % Total gross loans receivable 64,518 100.00 % 78,415 100.00 % Less: Allowance for loan losses — — Total loans receivable, net $ 64,518 78,415 Included in the loan totals, net of purchase discount, were $813.7 million and $962.3 million in loans acquired through acquisitions at June 30, 2018 and December 31, 2017, respectively. At June 30, 2018 and December 31, 2017, the purchase discount on purchased non-credit impaired loans was $13.9 million and $17.7 million, respectively. No allowance for loan losses related to the acquired loans is recorded on the acquisition date because the fair value of the loans acquired incorporates assumptions regarding credit risk. There are two methods to account for acquired loans as part of a business combination. Acquired loans that contain evidence of credit deterioration on the date of purchase are carried at the net present value of expected future proceeds in accordance with ASC 310-30 and are considered purchased credit impaired (“PCI”) loans. All other acquired loans are recorded at their initial fair value, adjusted for subsequent advances, pay downs, amortization or accretion of any premium or discount on purchase, charge-offs and any other adjustment to carrying value in accordance with ASC 310-20. PCI loans are aggregated into pools of loans based on common risk characteristics such as the type of loan, payment status, or collateral type. The Company estimates the amount and timing of expected cash flows for each purchased loan pool and the expected cash flows in excess of the amount paid are recorded as interest income over the remaining life of the pool (accretable yield). The excess of the pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. At June 30, 2018, the outstanding balance and recorded investment of PCI loans was $79.3 million and $64.5 million, respectively. At December 31, 2017, the outstanding balance and recorded investment of PCI loans was $93.8 million and $78.4 million, respectively, The following table presents changes in the value of PCI loans receivable for the three and six months ended June 30, 2018: For the Three Months For the Six Months Ended June 30, 2018 Ended June 30, 2018 (In thousands) (In thousands) Balance at beginning of period $ 71,030 $ 78,415 Net reductions for payments, foreclosures, and accretion 6,512 13,897 Balance at end of period $ 64,518 $ 64,518 The following table presents changes in the value of the accretable yield for PCI loans for the three and six months ended June 30, 2018 (in thousands): For the Three Months For the Six Months Ended June 30, 2018 Ended June 30, 2018 (In thousands) (In thousands) Accretable yield, beginning of period $ 15,745 $ 12,536 Additions — — Accretion (1,224 ) (2,556 ) Reclassification from nonaccretable balance, net 207 3,403 Other changes, net (58 ) 1,287 Accretable yield, end of period $ 14,670 $ 14,670 The composition of gross loans outstanding, net of undisbursed amounts, by rate type is as follows: At June 30, At December 31, 2018 2017 (Dollars in thousands) Variable rate loans $ 914,923 37.69 % 807,748 34.82 % Fixed rate loans 1,512,298 62.31 % 1,511,780 65.18 % Total loans outstanding $ 2,427,221 100.00 % 2,319,528 100.00 % The following table presents activity in the allowance for loan losses for the period indicated. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Allowance for loan losses: For the Three Months Ended June 30, 2018 Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) Balance, beginning of period $ 3,010 226 4,144 2,032 75 2,873 348 12,708 Provision for loan losses 240 (24 ) 205 49 153 (309 ) 246 559 Charge-offs (147 ) — (52 ) — (129 ) (27 ) — (355 ) Recoveries 7 — 42 1 18 6 — 74 Balance, end of period $ 3,110 202 4,339 2,082 117 2,543 594 12,987 For the Three Months Ended June 30, 2017 Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) Balance, beginning of period $ 2,506 236 3,613 943 110 2,498 809 10,715 Provision for loan losses 237 (18 ) (283 ) 4 (16 ) 359 (283 ) — Charge-offs (19 ) — — — (1 ) — — (20 ) Recoveries 1 — 1 1 8 44 — 55 Balance, end of period $ 2,725 218 3,331 948 101 2,901 526 10,750 Allowance for loan losses: For the Six Months Ended June 30, 2018 Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) Balance, beginning of period $ 2,719 168 3,986 1,201 79 2,840 485 11,478 Provision for loan losses 526 26 392 (155 ) 118 (456 ) 109 559 Charge-offs (147 ) — (86 ) (1 ) (138 ) (116 ) — (488 ) Recoveries 12 8 47 1,037 58 275 — 1,437 Balance, end of period $ 3,110 202 4,339 2,082 117 2,543 594 12,987 For the Six Months Ended June 30, 2017 Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) Balance, beginning of period $ 2,636 197 3,344 1,132 80 2,805 494 10,688 Provision for loan losses 122 21 (39 ) (186 ) 20 30 32 — Charge-offs (35 ) — — — (10 ) — — (45 ) Recoveries 2 — 26 2 11 66 — 107 Balance, end of period $ 2,725 218 3,331 948 101 2,901 526 10,750 The following table disaggregates our allowance for loan losses and recorded investment in loans by impairment methodology. Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) At June 30, 2018: Allowance for loan losses ending balances: Individually evaluated for impairment $ 204 29 142 534 — 11 — 920 Collectively evaluated for impairment 2,906 173 4,197 1,548 117 2,532 594 12,067 $ 3,110 202 4,339 2,082 117 2,543 594 12,987 Loans receivable ending balances: Individually evaluated for impairment $ 3,698 126 4,636 1,840 19 754 — 11,073 Collectively evaluated for impairment 686,236 87,729 896,736 319,062 15,944 345,923 — 2,351,630 Purchased Credit-Impaired Loans 9,501 91 39,186 6,876 78 8,786 — 64,518 Total loans receivable $ 699,435 87,946 940,558 327,778 16,041 355,463 — 2,427,221 At December 31, 2017: Allowance for loan losses ending balances: Individually evaluated for impairment $ 64 29 — — — 16 — 109 Collectively evaluated for impairment 2,655 139 3,986 1,201 79 2,824 485 11,369 $ 2,719 168 3,986 1,201 79 2,840 485 11,478 Loans receivable ending balances: Individually evaluated for impairment $ 3,435 108 4,811 318 26 285 — 8,983 Collectively evaluated for impairment 651,162 89,853 886,658 287,119 19,869 297,469 — 2,232,130 Purchased Credit-Impaired Loans 11,177 180 42,351 7,356 95 17,256 — 78,415 Total loans receivable $ 665,774 90,141 933,820 294,793 19,990 315,010 — 2,319,528 The following table presents impaired loans individually evaluated for impairment in the segmented portfolio categories and the corresponding allowance for loan losses as of June 30, 2018 and December 31, 2017. The recorded investment is defined as the original amount of the loan, net of any deferred costs and fees, less any principal reductions and direct charge-offs. Unpaid principal balance includes amounts previously included in charge-offs. At June 30, 2018 At December 31, 2017 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 2,250 2,375 — 2,725 2,846 — Home equity 68 68 — — — — Commercial real estate 2,824 2,824 — 3,370 3,370 — Construction and development 267 267 — 318 318 — Consumer loans 19 19 — 26 26 — Commercial business loans 599 599 — 113 114 — 6,027 6,152 — 6,552 6,674 — With an allowance recorded: Loans secured by real estate: One-to-four family 1,448 1,486 204 710 710 64 Home equity 58 58 29 108 108 29 Commercial real estate 1,812 1,894 142 1,441 1,441 — Construction and development 1,573 1,573 534 — — — Consumer loans — — — — — — Commercial business loans 155 155 11 172 172 16 5,046 5,166 920 2,431 2,431 109 Total: Loans secured by real estate: One-to-four family 3,698 3,861 204 3,435 3,556 64 Home equity 126 126 29 108 108 29 Commercial real estate 4,636 4,718 142 4,811 4,811 — Construction and development 1,840 1,840 534 318 318 — Consumer loans 19 19 — 26 26 — Commercial business loans 754 754 11 285 286 16 $ 11,073 11,318 920 8,983 9,105 109 The following table presents the average recorded investment and interest income recognized on impaired loans individually evaluated for impairment in the segmented portfolio categories for the three and six months ended June 30, 2018 and 2017. For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 2,199 (14 ) 3,027 (15 ) 2,107 2 2,953 21 Home equity 17 — 347 9 8 1 258 12 Commercial real estate 2,971 (31 ) 4,016 (37 ) 3,012 49 4,043 98 Construction and development 267 5 158 8 267 9 87 8 Consumer loans 20 — 19 — 21 — 19 — Commercial business loans 183 9 32 (16 ) 103 14 35 1 5,657 (31 ) 7,599 (51 ) 5,518 75 7,395 140 With an allowance recorded: Loans secured by real estate: One-to-four family 1,481 5 992 5 1,489 16 803 8 Home equity 88 (3 ) 274 (2 ) 96 — 233 (1 ) Commercial real estate 1,839 18 1,009 (67 ) 1,793 39 1,014 — Construction and development 1,447 — — — 922 (4 ) — — Consumer loans — — — — — — — Commercial business loans 159 2 205 — 164 5 211 6 5,014 22 2,480 (64 ) 4,464 56 2,261 13 Total: Loans secured by real estate: One-to-four family 3,680 (9 ) 4,019 (10 ) 3,596 18 3,756 29 Home equity 105 (3 ) 621 7 104 1 491 11 Commercial real estate 4,810 (13 ) 5,025 (104 ) 4,805 88 5,057 98 Construction and development 1,714 5 158 8 1,189 5 87 8 Consumer loans 20 — 19 — 21 — 19 — Commercial business loans 342 11 237 (16 ) 267 19 246 7 $ 10,671 (9 ) 10,079 (115 ) 9,982 131 9,656 153 A loan is considered past due if the required principal and interest payment has not been received as of the due date. The following schedule is an aging of past due loans receivable by portfolio segment as of June 30, 2018 and December 31, 2017. At June 30, 2018 Real Estate Loans One-to- Commercial Construction four Home real and Commercial All Loans: family equity estate development Consumer business Total (In thousands) 30-59 days past due $ 1,343 567 918 274 239 327 3,668 60-89 days past due 870 164 1,411 52 23 119 2,639 90 days or more past due 2,997 215 611 989 23 750 5,585 Total past due 5,210 946 2,940 1,315 285 1,196 11,892 Current 694,225 87,000 937,618 326,463 15,756 354,267 2,415,329 Total loans receivable $ 699,435 87,946 940,558 327,778 16,041 355,463 2,427,221 At June 30, 2018 Purchased Non-Credit Real Estate Loans Impaired Loans (ASC 310-20) and Nonacquired Loans: One-to- Home Commercial Construction Consumer Commercial Total (In thousands) 30-59 days past due $ 1,264 556 826 274 239 327 3,486 60-89 days past due 798 164 1,411 41 23 119 2,556 90 days or more past due 2,582 210 611 87 23 750 4,263 Total past due 4,644 930 2,848 402 285 1,196 10,305 Current 685,290 86,925 898,524 320,500 15,678 345,481 2,352,398 Total loans receivable $ 689,934 87,855 901,372 320,902 15,963 346,677 2,362,703 At June 30, 2018 Real Estate Loans Purchased Credit One-to- Home Commercial Construction Consumer Commercial Total (In thousands) 30-59 days past due $ 79 11 92 — — — 182 60-89 days past due 72 — — 11 — — 83 90 days or more past due 415 5 — 902 — — 1,322 Total past due 566 16 92 913 — — 1,587 Current 8,935 75 39,094 5,963 78 8,786 62,931 Total loans receivable $ 9,501 91 39,186 6,876 78 8,786 64,518 At December 31, 2017 Real Estate Loans One-to- Commercial Construction four Home real and Commercial All Loans: family equity estate development Consumer business Total (In thousands) 30-59 days past due $ 8,139 1,350 1,358 2,328 108 366 13,649 60-89 days past due 1,025 109 421 — 129 185 1,869 90 days or more past due 2,580 117 689 2,482 21 59 5,948 Total past due 11,744 1,576 2,468 4,810 258 610 21,466 Current 654,030 88,565 931,352 289,983 19,732 314,400 2,298,062 Total loans receivable $ 665,774 90,141 933,820 294,793 19,990 315,010 2,319,528 At December 31, 2017 Purchased Non-Credit Real Estate Loans Impaired Loans One-to- Commercial Construction (ASC 310-20) and four Home real and Commercial Nonpurchased Loans: family equity estate development Consumer business Total (In thousands) 30-59 days past due $ 7,874 1,319 1,112 2,315 108 366 13,094 60-89 days past due 1,000 109 421 — 129 185 1,844 90 days or more past due 1,894 108 689 1,297 21 59 4,068 Total past due 10,768 1,536 2,222 3,612 258 610 19,006 Current 643,829 88,425 889,247 283,825 19,637 297,144 2,222,107 Total loans receivable $ 654,597 89,961 891,469 287,437 19,895 297,754 2,241,113 At December 31, 2017 Real Estate Loans One-to- Commercial Construction Purchased Credit Impaired four Home real and Commercial Loans (ASC 310-30): family equity estate development Consumer business Total (In thousands) 30-59 days past due $ 265 31 246 13 — — 555 60-89 days past due 25 — — — — — 25 90 days or more past due 686 9 — 1,185 — — 1,880 Total past due 976 40 246 1,198 — — 2,460 Current 10,201 140 42,105 6,158 95 17,256 75,955 Total loans receivable $ 11,177 180 42,351 7,356 95 17,256 78,415 Loans are generally placed in nonaccrual status when the collection of principal and interest is 90 days or more past due, unless the obligation is both well-secured and in the process of collection. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest payments received while the loan is on nonaccrual are applied to the principal balance. No interest income was recognized on impaired loans subsequent to the nonaccrual status designation. A loan is returned to accrual status when the borrower makes consistent payments according to contractual terms and future payments are reasonably assured. The following is a schedule of loans receivable, by portfolio segment, on nonaccrual at June 30, 2018 and December 31, 2017. At June 30, At December 31, 2018 2017 Loans secured by real estate: (In thousands) One-to-four family $ 2,909 1,927 Home equity 231 108 Commercial real estate 2,710 1,540 Construction and development 1,661 51 Consumer loans 100 22 Commercial business loans 812 313 $ 8,423 3,961 The Company uses several metrics as credit quality indicators of current or potential risks as part of the ongoing monitoring of credit quality of its loan portfolio. The credit quality indicators are periodically reviewed and updated on a case-by-case basis. The Company uses the following definitions for the internal risk rating grades, listed from the least risk to the highest risk. Pass: Special mention: Substandard: Doubtful: The Company uses the following definitions in the tables below: Nonperforming: Performing: The following is a schedule of the credit quality of loans receivable, by portfolio segment, as of June 30, 2018 and December 31, 2017. At June 30, 2018 Real Estate Loans One-to- Commercial Construction four Home real and Commercial Total Loans: family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 694,822 87,754 915,661 321,280 15,838 348,154 2,383,509 Special Mention 877 7 17,605 3,280 103 4,970 26,842 Substandard 3,736 185 7,292 3,218 100 2,339 16,870 Total loans receivable $ 699,435 87,946 940,558 327,778 16,041 355,463 2,427,221 Performing $ 696,111 87,710 937,848 325,215 15,922 354,651 2,417,457 Nonperforming: 90 days past due still accruing 415 5 — 902 19 — 1,341 Nonaccrual 2,909 231 2,710 1,661 100 812 8,423 Total nonperforming 3,324 236 2,710 2,563 119 812 9,764 Total loans receivable $ 699,435 87,946 940,558 327,778 16,041 355,463 2,427,221 At June 30, 2018 Purchased Non-Credit Real Estate Loans Impaired Loans One-to- Commercial Construction (ASC 310-20) and four Home real and Commercial Nonacquired Loans: family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 687,208 87,692 892,865 319,206 15,760 341,870 2,344,601 Special Mention — — 4,980 74 103 3,945 9,102 Substandard 2,726 163 3,527 1,622 100 862 9,000 Total loans receivable $ 689,934 87,855 901,372 320,902 15,963 346,677 2,362,703 Performing $ 687,025 87,624 898,662 319,241 15,844 345,865 2,354,261 Nonperforming: 90 days past due still accruing — — — — 19 — 19 Nonaccrual 2,909 231 2,710 1,661 100 812 8,423 Total nonperforming 2,909 231 2,710 1,661 119 812 8,442 Total loans receivable $ 689,934 87,855 901,372 320,902 15,963 346,677 2,362,703 At June 30, 2018 Real Estate Loans One-to- Commercial Construction Purchased Credit Impaired four Home real and Commercial Loans (ASC 310-30): family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 7,614 62 22,796 2,074 78 6,284 38,908 Special Mention 877 7 12,625 3,206 — 1,025 17,740 Substandard 1,010 22 3,765 1,596 — 1,477 7,870 Total loans receivable $ 9,501 91 39,186 6,876 78 8,786 64,518 Performing $ 9,086 86 39,186 5,974 78 8,786 63,196 Nonperforming: 90 days past due still accruing 415 5 — 902 — — 1,322 Nonaccrual — — — — — — — Total nonperforming 415 — — — — — 1,322 Total loans receivable $ 9,501 91 39,186 6,876 78 8,786 64,518 At December 31, 2017 Real Estate Loans One-to- Commercial Construction four Home real and Commercial Total Loans: family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 658,031 89,919 898,328 287,491 19,817 296,038 2,249,624 Special Mention 4,086 30 28,670 4,201 35 12,339 49,361 Substandard 3,657 192 6,822 3,101 138 6,633 20,543 Total loans receivable $ 665,774 90,141 933,820 294,793 19,990 315,010 2,319,528 Performing $ 663,161 90,024 932,280 293,557 19,968 314,697 2,313,687 Nonperforming: 90 days past due still accruing 686 9 — 1,185 — — 1,880 Nonaccrual 1,927 108 1,540 51 22 313 3,961 Total nonperforming 2,613 117 1,540 1,236 22 313 5,841 Total loans receivable $ 665,774 90,141 933,820 294,793 19,990 315,010 2,319,528 At December 31, 2017 Purchased Non-Credit Real Estate Loans Impaired Loans One-to- Commercial Construction (ASC 310-20) and four Home real and Commercial Nonpurchased Loans: family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 652,508 89,853 887,458 286,857 19,785 295,470 2,231,931 Special Mention — — 2,526 79 — 2,067 4,672 Substandard 2,089 108 1,485 501 110 217 4,510 Total loans receivable $ 654,597 89,961 891,469 287,437 19,895 297,754 2,241,113 Performing $ 652,670 89,853 889,929 287,386 19,873 297,441 2,237,152 Nonperforming: 90 days past due still accruing — — — — — — — Nonaccrual 1,927 108 1,540 51 22 313 3,961 Total nonperforming 1,927 108 1,540 51 22 313 3,961 Total loans receivable $ 654,597 89,961 891,469 287,437 19,895 297,754 2,241,113 At December 31, 2017 Real Estate Loans One-to- Commercial Construction Purchased Credit Impaired four Home real and Commercial Loans (ASC 310-30): family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 5,523 66 10,870 634 32 568 17,693 Special Mention 4,086 30 26,144 4,122 35 10,272 44,689 Substandard 1,568 84 5,337 2,600 28 6,416 16,033 Total loans receivable $ 11,177 180 42,351 7,356 95 17,256 78,415 Performing $ 10,491 171 42,351 6,171 95 17,256 76,535 Nonperforming: 90 days past due still accruing 686 9 — 1,185 — — 1,880 Nonaccrual — — — — — — — Total nonperforming 686 9 — 1,185 — — 1,880 Total loans receivable $ 11,177 180 42,351 7,356 95 17,256 78,415 The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. Troubled Debt Restructurings At June 30, 2018, there were $6.3 million in loans designated as troubled debt restructurings of which $5.0 million were accruing. At June 30, 2017, there were $6.7 million in loans designated as troubled debt restructurings of which $5.5 million were accruing. At December 31, 2017, there were $6.5 million in loans designated as troubled debt restructurings of which $5.3 million were accruing. There was one loan with a premodification and post modification balance of $135,000 identified as a troubled debt restructuring during the six months ended June 30, 2018 due to an interest rate change. There were two loans with a premodification and post modification balance of $608,000 identified as troubled debt restructurings during the six months ended June 30, 2017 due to interest rate changes. No loans previously restructured in the twelve months prior to June 30, 2018 and 2017 went into default during the three and six months ended June 30, 2018 and 2017. |
REAL ESTATE ACQUIRED THROUGH FO
REAL ESTATE ACQUIRED THROUGH FORECLOSURE | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
REAL ESTATE ACQUIRED THROUGH FORECLOSURE | NOTE 6 – REAL ESTATE ACQUIRED THROUGH FORECLOSURE The following presents summarized activity in real estate acquired through foreclosure for the periods ended June 30, 2018 and December 31, 2017: At June 30, At December 31, 2018 2017 (In thousands) Balance at beginning of period $ 3,106 1,179 Additions 91 2,554 Sales (1,345 ) (627 ) Write downs (126 ) — Balance at end of period $ 1,726 3,106 A summary of the composition of real estate acquired through foreclosure follows: At June 30, At December 31, 2018 2017 (In thousands) Real estate loans: One-to-four family $ 433 709 Construction and development 1,293 2,397 $ 1,726 $ 3,106 |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
DEPOSITS | NOTE 7 - DEPOSITS Deposits outstanding by type of account at June 30, 2018 and December 31, 2017 are summarized as follows: At June 30, At December 31, 2018 2017 (In thousands) Noninterest-bearing demand accounts $ 577,568 525,615 Interest-bearing demand accounts 584,719 551,308 Savings accounts 198,571 213,142 Money market accounts 458,558 452,734 Certificates of deposit: Less than $250,000 788,693 755,887 $250,000 or more 100,689 106,243 Total certificates of deposit 889,382 862,130 Total deposits $ 2,708,798 2,604,929 The aggregate amount of brokered certificates of deposit was $110.5 million and $99.2 million at June 30, 2018 and December 31, 2017, respectively. Brokered certificates of deposit are included in the table above under certificates of deposit less than $250,000. The aggregate amount of institutional certificates of deposit was $57.1 million and $39.1 million at June 30, 2018 and December 31, 2017, respectively. |
ESTIMATED FAIR VALUE OF FINANCI
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 8 – ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS Current accounting literature requires disclosures about the fair value of all financial instruments whether or not recognized in the balance sheet, for which it is practicable to estimate the value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized through immediate settlement of the instrument. The fair value of a financial instrument is an amount at which the asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced sale. Fair values are estimated at a specific point in time based on relevant market information and information about the financial instruments. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. The Company has used management’s best estimate of fair value based on the above assumptions. Thus the fair values presented may not be the amounts that could be realized in an immediate sale or settlement of the instrument. In addition, any income taxes or other expenses that would be incurred in an actual sale or settlement are not taken into consideration in the fair values presented. The Company determines the fair value of its financial instruments based on the fair value hierarchy established under ASC 820-10, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the financial instrument’s fair value measurement in its entirety. There are three levels of inputs that may be used to measure fair value. The three levels of inputs of the valuation hierarchy are defined below: Level 1 Quoted prices (unadjusted) in active markets for identical assets and liabilities for the instrument or security to be valued. Level 1 assets include marketable equity securities as well as U.S. Treasury securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or model-based valuation techniques for which all significant assumptions are derived principally from or corroborated by observable market data. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined by using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. U.S. Government sponsored agency securities, mortgage-backed securities issued by U.S. Government sponsored enterprises and agencies, obligations of states and municipalities, collateralized mortgage obligations issued by U.S. Government sponsored enterprises, and mortgage loans held-for-sale are generally included in this category. Certain private equity investments that invest in publicly traded companies are also considered Level 2 assets. Level 3 Unobservable inputs that are supported by little, if any, market activity for the asset or liability. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow models and similar techniques, and may also include the use of market prices of assets or liabilities that are not directly comparable to the subject asset or liability. These methods of valuation may result in a significant portion of the fair value being derived from unobservable assumptions that reflect The Company’s own estimates for assumptions that market participants would use in pricing the asset or liability. This category primarily includes collateral-dependent impaired loans, other real estate, certain equity investments, and certain private equity investments. The following is a description of the fair value methodologies used for financial assets and liabilities. Assets and liabilities measured at fair value on a recurring basis are as follows as of June 30, 2018 and December 31, 2017: Quoted market Significant other Significant other price in active observable inputs unobservable inputs markets (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2018 Available-for-sale investment securities: Municipal securities $ — 201,577 — US government agencies — 12,945 — Collateralized loan obligations — 172,508 — Corporate securities — 6,989 — Mortgage-backed securities: Agency — 233,757 — Non-agency — 165,884 — Trust Preferred Securities — — 11,308 Loans held for sale — 39,473 — Derivative assets: Cash flow hedges: Interest rate swaps 2,007 — — Non-hedging derivatives: Interest rate swaps 2,007 — — Mortgage loan interest rate lock commitments — 1,476 — Mortgage loan forward sales commitments — 511 — Derivative liabilities: Non-hedging derivatives: Interest rate swaps — — — Mortgage-backed securities forward sales commitments — 129 — Total $ 4,014 835,249 11,308 December 31, 2017 Available-for-sale investment securities: Municipal securities $ — 247,350 — US government agencies — 12,008 — Collateralized loan obligations — 128,643 — Corporate securities — 7,006 — Mortgage-backed securities: Agency — 243,595 — Non-agency — 95,125 — Trust preferred securities — — 9,512 Loans held for sale — 35,292 — Derivative assets: Cash flow hedges: Interest rate swaps 644 — — Non-hedging derivatives: Interest rate swaps 964 — — Mortgage loan interest rate lock commitments — 890 — Mortgage loan forward sales commitments — 305 — Derivative liabilities: Non-hedging derivatives: Interest rate swaps 95 — — Mortgage-backed securities forward sales commitments — 61 — Total $ 1,703 770,275 9,512 Securities Available-for-Sale Fair values for investment securities available-for-sale are measured on a recurring basis upon quoted market prices, if available. If quoted market prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for prepayment assumptions, projected credit losses, and liquidity. At June 30, 2018 and December 31, 2017, the Company’s investment securities available-for-sale are recurring Level 2 except for trust preferred securities which are determined to be Level 3. Mortgage Loans Held for Sale Mortgage loans held for sale are recorded at either fair value, if elected, or the lower of cost or fair value on an individual loan basis on a recurring basis. Origination fees and costs for loans held for sale recorded at lower of cost or market are capitalized in the basis of the loan and are included in the calculation of realized gains and losses upon sale. Origination fees and costs are recognized in earnings at the time of origination for loans held for sale that are recorded at fair value. Fair value is derived from observable current market prices, when available, and includes loan servicing value. When observable market prices are not available, the Company uses judgment and estimates fair value using internal models, in which the Company uses its best estimates of assumptions it believes would be used by market participants in estimating fair value. Mortgage loans held for sale are classified within Level 2 of the valuation hierarchy. Derivative Assets and Liabilities Fair values for derivative assets and liabilities are measured on a recurring basis. The primary use of derivative instruments is related to the mortgage banking activities of the Company. The Company’s wholesale mortgage banking subsidiary enters into interest rate lock commitments related to expected funding of residential mortgage loans at specified times in the future. Interest rate lock commitments that relate to the origination of mortgage loans that will be held-for-sale are considered derivative instruments under applicable accounting guidance. As such, the Company records its interest rate lock commitments and forward loan sales commitments at fair value, determined as the amount that would be required to settle each of these derivative financial instruments at the balance sheet date. In the normal course of business, the mortgage subsidiary enters into contractual interest rate lock commitments to extend credit, if approved, at a fixed interest rate and with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within the time frames established by the mortgage banking subsidiary. Market risk arises if interest rates move adversely between the time of the interest rate lock by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing interest rate lock commitments to borrowers, the mortgage banking subsidiary enters into best efforts forward sales contracts with third party investors. The forward sales contracts lock in a price for the sale of loans similar to the specific interest rate lock commitments. Both the interest rate lock commitments to the borrowers and the forward sales contracts to the investors that extend through to the date the loan may close are derivatives, and accordingly, are marked to fair value through earnings. In estimating the fair value of an interest rate lock commitment, the Company assigns a probability to the interest rate lock commitment based on an expectation that it will be exercised and the loan will be funded. The fair value of the interest rate lock commitment is derived from the fair value of related mortgage loans, which is based on observable market data and includes the expected net future cash flows related to servicing of the loans. The fair value of the interest rate lock commitment is also derived from inputs that include guarantee fees negotiated with the agencies and private investors, buy-up and buy-down values provided by the agencies and private investors, and interest rate spreads for the difference between retail and wholesale mortgage rates. The Company also applies fall-out ratio assumptions for those interest rate lock commitments for which we do not close a mortgage loan. The fall-out ratio assumptions are based on the mortgage subsidiary’s historical experience, conversion ratios for similar loan commitments, and market conditions. While fall-out tendencies are not exact predictions of which loans will or will not close, historical performance review of loan-level data provides the basis for determining the appropriate hedge ratios. In addition, on a periodic basis, the mortgage banking subsidiary performs analysis of actual rate lock fall-out experience to determine the sensitivity of the mortgage pipeline to interest rate changes from the date of the commitment through loan origination, and then period end, using applicable published mortgage-backed investment security prices. The expected fall-out ratios (or conversely the “pull-through” percentages) are applied to the determined fair value of the unclosed mortgage pipeline in accordance with GAAP. Changes to the fair value of interest rate lock commitments are recognized based on interest rate changes, changes in the probability that the commitment will be exercised, and the passage of time. The fair value of the forward sales contracts to investors considers the market price movement of the same type of security between the trade date and the balance sheet date. These instruments are defined as Level 2 within the valuation hierarchy. Derivative instruments not related to mortgage banking activities include interest rate swap agreements. Fair values for these instruments are based on quoted market prices, when available. As such, the fair value adjustments for derivatives with fair values based on quoted market prices in an active market are recurring Level 1. Assets measured at fair value on a nonrecurring basis are as follows as of June 30, 2018 and December 31, 2017: Quoted market price Significant other Significant other in active markets observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2018 Impaired loans: Loans secured by real estate: One-to-four family $ — — 3,494 Home equity — — 97 Commercial real estate — — 4,494 Construction and development — — 1,306 Consumer loans — — 19 Commercial business loans — — 743 Real estate owned: One-to-four family — — 433 Construction and development — — 1,293 Mortgage servicing rights — — 29,890 Total $ — — 41,769 December 31, 2017 Impaired loans: Loans secured by real estate: One-to-four family $ — — 3,371 Home equity — — 79 Commercial real estate — — 4,811 Construction and development — — 318 Consumer loans — — 26 Commercial business loans — — 269 Real estate owned: One-to-four family — — 709 Construction and development — — 2,397 Mortgage servicing rights — — 26,255 Total $ — — 38,235 For Level 3 assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017, the significant unobservable inputs used in the fair value measurements were as follows: June 30, 2018 and December 31, 2017 Significant Significant Unobservable Valuation Technique Observable Inputs Inputs Impaired Loans Appraisal Value Appraisals and or sales of Appraisals discounted 10% to 20% for Real Estate Owned Appraisal Value/ Appraisals and or sales of Appraisals discounted 10% to 20% for Mortgage Servicing Rights Discounted cash flows Comparable sales Discount rates averaging 11.5% - 13% Impaired Loans Loans that are considered impaired are recorded at fair value on a nonrecurring basis. Once a loan is considered impaired, the fair value is measured using one of several methods, including collateral liquidation value, market value of similar debt and discounted cash flows. Those impaired loans not requiring a specific charge against the allowance represent loans for which the fair value of the expected repayments or collateral meet or exceed the recorded investment in the loan. Loans which are deemed to be impaired are primarily valued on a nonrecurring basis at the fair value of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which the Company considers to be Level 3 inputs. Other Real Estate Owned (“OREO”) OREO is carried at the lower of carrying value or fair value on a nonrecurring basis. Fair value is based upon independent appraisals or management’s estimation of the collateral and is considered a Level 3 measurement. When the OREO value is based upon a current appraisal or when a current appraisal is not available or there is estimated further impairment, the measurement is considered a Level 3 measurement. Mortgage Servicing Rights A mortgage servicing right asset represents the amount by which the present value of the estimated future net cash flows to be received from servicing loans are expected to more than adequately compensate the Company for performing the servicing. The Company initially measures servicing assets and liabilities retained related to the sale of residential loans held for sale (“mortgage servicing rights”) at fair value, if practicable. For subsequent measurement purposes, the Company measures servicing assets and liabilities based on the lower of cost or market on a quarterly basis on a nonrecurring basis. The quarterly determination of fair value of servicing rights is provided by a third party and is estimated using a present value cash flow model. The most important assumptions used in the valuation model are the anticipated rate of the loan prepayments and discount rates. Although some assumptions in determining fair value are based on standards used by market participants, some are based on unobservable inputs and therefore are classified in Level 3 of the valuation hierarchy. The carrying amount and estimated fair value of the Company’s financial instruments at June 30, 2018 and December 31, 2017 are as follows: At June 30, 2018 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 27,327 27,327 27,327 — — Interest-bearing cash 54,751 54,751 54,751 — — Securities available-for-sale 804,968 804,968 — 793,660 11,308 Federal Home Loan Bank stock 19,019 19,019 — — 19,019 Other investments 3,429 3,429 — — 3,429 Derivative assets 6,001 6,001 4,014 1,987 — Loans held for sale 39,473 39,473 — 39,473 — Loans receivable, net 2,414,234 2,422,163 — — 2,422,163 Accrued interest receivable 12,664 12,664 — 12,664 — Real estate acquired through foreclosure 1,726 1,726 — — 1,726 Mortgage servicing rights 23,626 29,890 — — 29,890 Financial liabilities: Deposits 2,708,798 2,712,165 — 2,712,165 — Short-term borrowed funds 354,500 354,595 — 354,595 — Long-term debt 46,347 46,002 — 46,002 — Derivative liabilities 129 129 — 129 — Drafts outstanding 10,454 10,454 — 10,454 — Advances from borrowers for insurance and taxes 4,558 4,558 — 4,558 — Accrued interest payable 1,560 1,560 — 1,560 — Dividends payable to stockholders 1,354 1,354 — 1,354 — At December 31, 2017 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 25,254 25,254 25,254 — — Interest-bearing cash 55,998 55,998 55,998 — — Securities available-for-sale 743,239 743,239 — 733,727 9,512 Federal Home Loan Bank stock 19,065 19,065 — — 19,065 Other investments 3,446 3,446 — — 3,446 Derivative assets 2,803 2,803 1,608 1,195 — Loans held for sale 35,292 35,292 — 35,292 — Loans receivable, net 2,308,050 2,311,088 — — 2,311,088 Accrued interest receivable 11,992 11,992 11,992 Real estate acquired through foreclosure 3,106 3,106 — — 3,106 Mortgage servicing rights 21,003 26,255 — — 26,255 Financial liabilities: Deposits 2,604,929 2,597,526 — 2,597,526 — Short-term borrowed funds 340,500 339,870 — 339,870 — Long-term debt 72,259 71,859 — 71,859 — Derivative liabilities 156 156 95 61 — Drafts outstanding 7,324 7,324 — 7,324 — Advances from borrowers for insurance and taxes 3,005 3,005 — 3,005 — Accrued interest payable 1,126 1,126 — 1,126 — Dividends payable to stockholders 1,051 1,051 — 1,051 — At June 30, 2018 At December 31, 2017 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Off-Balance Sheet Financial Instruments: (In thousands) Commitments to extend credit $ 378,608 — 422,065 — Standby letters of credit 14,329 — 4,449 — In determining appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are subject to fair value disclosures. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. Cash and due from banks The carrying amounts of these financial instruments approximate fair value. All mature within 90 days and present no anticipated credit concerns. Interest-bearing cash The carrying amount of these financial instruments approximates fair value. FHLB stock and other investments The carrying amount of these financial instruments approximates fair value. Loans receivable During the first quarter of 2018, the Company adopted ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Liabilities.” The amendments included within this standard, which are applied prospectively, require the Company to disclose fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using an exit price notion. Prior to adopting the amendments included in the standard, the Company was allowed to measure fair value under an entry price notion. The entry price notion previously applied by the Company used a discounted cash flows technique to calculate the present value of expected future cash flows for a financial instrument. The exit price notion uses the same approach, but also incorporates other factors, such as enhanced credit risk, illiquidity risk and market factors that sometimes exist in exit prices in dislocated markets. As of June 30, 2018, the technique used by the Company to estimate the exit price of the loan portfolio consists of similar procedures to those used as of December 31, 2017, but with added emphasis on both illiquidity risk and credit risk not captured by the previously applied entry price notion. The fair value of the Company’s loan portfolio has always included a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach. The Company divides its loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk as described above. However, under the new guidance, the Company believes a further credit risk discount must be applied through the use of a discounted cash flow model to compensate for illiquidity risk, based on certain assumptions included within the discounted cash flow model, primarily the use of discount rates that better capture inherent credit risk over the lifetime of a loan. This consideration of enhanced credit risk provides an estimated exit price for the Company’s loan portfolio. For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. As of December 31, 2017, the fair value of the Company’s loan portfolio includes a credit risk assumption in the determination of the fair value of its loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. The Company’s loan portfolio is initially fair valued using a segmented approach. The Company divides its loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk. For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. For other loans, fair values are estimated using discounted cash flow models, using current market interest rates offered for loans with similar terms to borrowers of similar credit quality. The values derived from the discounted cash flow approach for each of the above portfolios are then further discounted to incorporate credit risk. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price as of December 31, 2017. Loans receivable are classified within Level 3 of the valuation hierarchy. Accrued interest receivable The carrying value approximates the fair value. Deposits The estimated fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The estimated fair value of fixed maturity certificates of deposits is estimated by discounting the future cash flows using rates currently offered for deposits of similar remaining maturities. Short-term borrowed funds The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings maturing within 90 days approximate their fair values. Estimated fair values of other short-term borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Long-term debt The estimated fair values of the Company’s long-term debt are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Drafts outstanding, advances from borrowers for insurance and taxes and dividends payable to stockholders The carrying value approximates the fair value. Accrued interest payable The fair value approximates the carrying value. Commitments to extend credit The carrying amounts of these commitments are considered to be a reasonable estimate of fair value because the commitments underlying interest rates are generally based upon current market rates. Off-balance sheet financial instruments Contract values and fair values for off-balance sheet, credit-related financial instruments are based on estimated fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and counterparties’ credit standing. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share | |
EARNINGS PER SHARE | NOTE 9 - EARNINGS PER SHARE Basic earnings per share (“EPS”) represents income available to common stockholders divided by the weighted-average number of shares outstanding during the period. Diluted earnings per share reflects additional shares that would have been outstanding if dilutive potential shares had been issued. Potential shares that may be issued by the Company relate solely to outstanding stock options, restricted stock (non-vested shares), restricted stock units (“RSUs”) and warrants, and are determined using the treasury stock method. Under the treasury stock method, the number of incremental shares is determined by assuming the issuance of stock for the outstanding stock options, unvested restricted stock and RSUs, and warrants, reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price for the period of the Company’s stock. The following is a summary of the reconciliation of weighted average shares outstanding for the three and six months ended June 30, 2018 and 2017: For the Three Months Ended June 30, 2018 2017 Basic Diluted Basic Diluted Weighted average shares outstanding 21,243,094 21,243,094 16,029,332 16,029,332 Effect of dilutive securities — 210,945 — 150,839 Weighted average shares outstanding 21,243,094 21,454,039 16,029,332 16,180,171 For the Six Months Ended June 30, 2018 2017 Basic Diluted Basic Diluted Weighted average shares outstanding 20,961,182 20,961,182 14,980,349 14,980,349 Effect of dilutive securities — 213,754 — 164,447 Weighted average shares outstanding 20,961,182 21,174,936 14,980,349 15,144,796 The following is a summary of the reconciliation of shares issued and outstanding and unvested restricted stock awards as of June 30, 2018 and 2017 used to calculate book value per share: As of June 30, 2018 2017 Issued and outstanding shares 22,570,182 16,156,943 Less nonvested restricted stock awards (137,345 ) (101,489 ) Period end dilutive shares 22,432,837 16,055,454 |
SUPPLEMENTAL SEGMENT INFORMATIO
SUPPLEMENTAL SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
SUPPLEMENTAL SEGMENT INFORMATION | NOTE 10 – SUPPLEMENTAL SEGMENT INFORMATION The Company has three reportable segments: community banking, wholesale mortgage banking (“mortgage banking”) and other. The community banking segment includes traditional banking services offered through the Bank as well as the managerial and operational support provided by Carolina Services. The mortgage banking segment provides wholesale mortgage loan origination and servicing offered through Crescent Mortgage Company. The other segment includes parent company financial information and represents an overhead function rather than an operating segment. The parent company’s most significant assets are its net investments in its subsidiaries. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1. The Company evaluates performance based on net income. The Company accounts for intersegment revenues and expenses as if the revenue/expense transactions were generated to third parties, that is, at current market prices. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each segment has different types and levels of credit and interest rate risk. The following tables present selected financial information for the Company’s reportable business segments for the three and six months ended June 30, 2018 and 2017: Community Mortgage For the Three Months Ended June 30, 2018 Banking Banking Other Eliminations Total (In thousands) Interest income $ 39,060 458 14 (55 ) 39,477 Interest expense 6,066 77 506 (77 ) 6,572 Net interest income (expense) 32,994 381 (492 ) 22 32,905 Provision for loan losses 534 25 — — 559 Noninterest income from external customers 5,570 5,434 23 — 11,027 Intersegment noninterest income 242 9 — (251 ) — Noninterest expense 19,348 4,748 275 — 24,371 Intersegment noninterest expense — 240 2 (242 ) — Income (loss) before income taxes 18,924 811 (746 ) 13 19,002 Income tax expense (benefit) 3,996 213 (178 ) 5 4,036 Net income (loss) $ 14,928 598 (568 ) 8 14,966 Community Mortgage For the Three Months Ended June 30, 2017 Banking Banking Other Eliminations Total (In thousands) Interest income $ 21,691 427 8 (3 ) 22,123 Interest expense 2,747 42 278 (42 ) 3,025 Net interest income (expense) 18,944 385 (270 ) 39 19,098 Provision for loan losses — — — — — Noninterest income from external customers 3,494 5,311 — — 8,805 Intersegment noninterest income 242 31 — (273 ) — Noninterest expense 11,448 4,164 278 — 15,890 Intersegment noninterest expense — 240 2 (242 ) — Income (loss) before income taxes 11,232 1,323 (550 ) 8 12,013 Income tax expense (benefit) 2,789 85 (204 ) 3 2,673 Net income (loss) $ 8,443 1,238 (346 ) 5 9,340 Community Mortgage For the Six Months Ended June 30, 2018 Banking Banking Other Eliminations Total (In thousands) Interest income $ 76,317 889 27 (79 ) 77,154 Interest expense 11,150 130 968 (130 ) 12,118 Net interest income (expense) 65,167 759 (941 ) 51 65,036 Provision for loan losses 534 25 — — 559 Noninterest income from external customers 10,630 10,358 88 — 21,076 Intersegment noninterest income 483 26 — (509 ) — Noninterest expense 52,278 9,137 554 1 61,970 Intersegment noninterest expense — 480 3 (483 ) — Income (loss) before income taxes 23,468 1,501 (1,410 ) 24 23,583 Income tax expense (benefit) 4,556 341 (345 ) 9 4,561 Net income (loss) $ 18,912 1,160 (1,065 ) 15 19,022 Community Mortgage For the Six Months June 30, 2017 Banking Banking Other Eliminations Total (In thousands) Interest income $ 38,949 822 13 8 39,792 Interest expense 4,965 54 459 (54 ) 5,424 Net interest income (expense) 33,984 768 (446 ) 62 34,368 Provision for loan losses — — — — — Noninterest income from external customers 5,912 10,123 — — 16,035 Intersegment noninterest income 483 64 — (547 ) — Noninterest expense 22,772 8,216 488 — 31,476 Intersegment noninterest expense — 480 3 (483 ) — Income (loss) before income taxes 17,607 2,259 (937 ) (2 ) 18,927 Income tax expense (benefit) 4,656 375 (346 ) (1 ) 4,684 Net income (loss) $ 12,951 1,884 (591 ) (1 ) 14,243 The following tables present selected financial information for the Company’s reportable business segments for June 30, 2018 and December 31, 2017: Community Mortgage At June 30, 2018 Banking Banking Other Eliminations Total (In thousands) Assets $ 3,690,507 83,258 584,455 (665,129 ) 3,693,091 Loans receivable, net 2,397,896 31,385 — (15,047 ) 2,414,234 Loans held for sale 15,990 23,483 — — 39,473 Deposits 2,718,920 — — (10,122 ) 2,708,798 Borrowed funds 368,500 14,600 32,347 (14,600 ) 400,847 Community Mortgage At December 31, 2017 Banking Banking Other Eliminations Total (In thousands) Assets $ 3,516,551 81,681 503,144 (582,359 ) 3,519,017 Loans receivable, net 2,295,316 28,206 — (15,472 ) 2,308,050 Loans held for sale 5,999 29,293 — — 35,292 Deposits 2,611,106 — — (6,177 ) 2,604,929 Borrowed funds 380,500 15,000 32,259 (15,000 ) 412,759 |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization | Organization Carolina Financial Corporation (“Carolina Financial” or the “Company”), incorporated under the laws of the State of Delaware, is a financial holding company with one wholly owned subsidiary, CresCom Bank (the “Bank”). CresCom Bank operates five wholly-owned subsidiaries, Crescent Mortgage Company, Carolina Services Corporation of Charleston (“Carolina Services”), DTFS, Inc., CresCom Insurance, LLC and CresCom Leasing, LLC. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. In consolidation, all material intercompany accounts and transactions have been eliminated. The results of operations of the businesses acquired in transactions accounted for as purchases are included only from the dates of acquisition. All majority-owned subsidiaries are consolidated unless control is temporary or does not rest with the Company. At June 30, 2018, statutory business trusts (“Trusts”) created or acquired by the Company had outstanding trust preferred securities with an aggregate par value of $36.0 million. The principal assets of the Trusts are $37.1 million of the Company’s subordinated debentures with identical rates of interest and maturities as the trust preferred securities. The Trusts have issued $1.1 million of common securities to the Company and are included in other investments in the accompanying consolidated balance sheets. The Trusts are not consolidated subsidiaries of the Company. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018. For further information, refer to the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission (the “SEC”) on March 16, 2018. There have been no significant changes to the accounting policies as disclosed in the Company’s Form 10-K. |
Management's Estimates | Management’s Estimates The financial statements are prepared in accordance with GAAP, which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, including valuation for impaired loans, the valuation of real estate acquired in connection with foreclosure or in satisfaction of loans, the valuation of securities, the valuation of derivative instruments, the valuation of assets acquired and liabilities assumed in business combinations, the valuation of mortgage servicing rights, the determination of the reserve for mortgage loan repurchase losses, asserted and unasserted legal claims and deferred tax assets or liabilities. In connection with the determination of the allowance for loan losses and foreclosed real estate, management obtains independent appraisals for significant properties. Management must also make estimates in determining the estimated useful lives and methods for depreciating premises and equipment. Management uses available information to recognize losses on loans and foreclosed real estate. However, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses and foreclosed real estate. It is possible that the allowance for loan losses and valuation of foreclosed real estate may change materially in the near term. |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) represents income available to common stockholders divided by the weighted-average number of shares outstanding during the period. Diluted earnings per share reflects additional shares that would have been outstanding if dilutive potential shares had been issued. Potential shares that may be issued by the Company relate solely to outstanding stock options, restricted stock (non-vested shares), restricted stock units (“RSUs”) and warrants, and are determined using the treasury stock method. Under the treasury stock method, the number of incremental shares is determined by assuming the issuance of stock for the outstanding stock options, unvested restricted stock and RSUs, and warrants, reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price for the period of the Company’s stock. |
Subsequent Events | Subsequent Events Subsequent events are material events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the statement of financial condition but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and no subsequent events were identified that required accrual or disclosure . |
Reclassification | Reclassification Certain reclassifications of accounts reported for previous periods have been made in these consolidated financial statements. Such reclassifications had no effect on stockholders’ equity or the net income as previously reported. |
Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements During the first quarter of 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2016-01, Recognition and Measurement of Financial Assets and Liabilities. The amendments included within this standard, which are applied prospectively, require the Company to disclose fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using an exit price notion. Prior to adopting the amendments included in the standard, the Company was allowed to measure fair value under an entry price notion. Refer to Note 8 -Estimated Fair Value of Financial Instruments for more information. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 updates the new revenue standard by clarifying the principal versus agent implementation guidance, but does not change the core principle of the new standard. The updates to the principal versus agent guidance: (i) require an entity to determine whether it is a principal or an agent for each distinct good or service (or a distinct bundle of goods or services) to be provided to the customer; (ii) illustrate how an entity that is a principal might apply the control principle to goods, services, or rights to services, when another party is involved in providing goods or services to a customer and (iii) clarify that the purpose of certain specific control indicators is to support or assist in the assessment of whether an entity controls a good or service before it is transferred to the customer, provide more specific guidance on how the indicators should be considered, and clarify that their relevance will vary depending on the facts and circumstances. The Company’s revenue is primarily comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. The Company has evaluated ASU 2016-08 and 2014-09 and determined that this guidance did not have a material impact on the way the Company currently recognizes revenue or the way it recognizes expenses related to those revenue streams. The Company adopted ASU No. 2014-09 and its related amendments on its required effective date of January 1, 2018 utilizing the modified retrospective approach. Since there was no net income impact upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Consistent with the modified retrospective approach, the Company did not adjust prior period amounts. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718) (“ASU 2017-09”). ASU 2017-09 provides clarity when applying guidance to a change to the terms or conditions of a share-based payment award. The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company adopted ASU No. 2017-09 and its related amendments on its required effective date of January 1, 2018. The amendments will be applied prospectively to an award modified on or after the adoption date. The Company has determined that this guidance did not have a material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). ASU 2017-12 amends the requirements of the Derivatives and Hedging Topic of the Accounting Standards Codification (“ASC”) to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Cost (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”). ASU 2017-08 shortens the amortization period of the premium for certain callable debt securities, from the contractual maturity date to the earliest call date. The amendments do not require an accounting change for securities held at a discount; an entity will continue to amortize to the contractual maturity date the discount related to callable debt securities. The amendments apply to the amortization of premiums on callable debt securities with explicit, non-contingent call features that are callable at fixed prices on preset dates. For public business entities, ASU 2017-08 is effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for all entities, including in an interim period. The amendments should be applied on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the amendments are adopted. The Company has determined that this guidance will not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 applies a right-of-use (“ROU”) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. At inception, lessees must classify all leases as either finance or operating based on five criteria. Balance sheet recognition of finance and operating leases is similar, but the pattern of expense recognition in the income statement, as well as the effect on the statement of cash flows, differs depending on the lease classification. For public business entities, the amendments in ASU 2016-02 are effective for interim and annual periods beginning after December 15, 2018. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach which includes a number of optional practical expedients that entities may elect to apply. The Company is currently evaluating the provisions of ASU 2016-02 in relation to its outstanding leases to determine the potential impact the new standard will have to the Company’s financial statements. The Company expects the new guidance will require these lease arrangements to be recognized on the consolidated statements of condition as a right-of-use asset and a corresponding lease liability. Therefore, the Company’s preliminary evaluation indicates the provisions of ASU No. 2016-02 are expected to impact the Company’s consolidated statements of condition, as well as our regulatory capital ratios. However, the Company continues to evaluate the extent of potential impact the new guidance will have on the Company’s consolidated financial statements. The Company is nearing completion of identifying a complete inventory of arrangements containing a lease and accumulating the lease data necessary to apply the amended guidance. In addition, the Company has obtained new software to aid in the transition to the new leasing guidance. In January 2017, the FASB issued ASU No. 2017-04, Intangible-Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test under Accounting Standards Codification ASC 350 and eliminating Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those years. The amendments should be adopted prospectively and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company has determined that this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in earlier recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is continuing to assess the impact that this new guidance will have on its consolidated financial statements through its implementation team. The team has assigned roles and responsibilities, key tasks to complete, and a general timeline to be followed. The implementation team meets periodically to discuss the latest developments and ensure progress is being made. The team also keeps current on evolving interpretations and industry practices related to ASU 2016-13 via webcasts, publications, and conferences. The Company has engaged an outside consultant to assist with the methodology review and validation, as well as other key aspects of implementing the standard. The Company’s preliminary evaluation indicates the provisions of ASU No. 2016-13 are expected to impact the Company’s consolidated financial statements, in particular the level of the reserve for credit losses. However, the Company continues to evaluate the extent of the potential impact. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
First South Bancorp, Inc. [Member] | |
Schedule of Assets and Liabilities Acquired [Table Text Block] | The following table presents a summary of total consideration paid by the Company at the acquisition date (dollars in thousand). Common stock issued (4,822,540 shares at $36.85 per share) $ 177,711 Cash in lieu of fractional shares and fair value of stock options 983 Total consideration paid $ 178,694 |
Schedule of loans acquired at the Acquisition date | The following table summarizes the consideration paid by the Company in the merger with First South and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. As Reported by Fair Value As Recorded by November 1, 2017 First South Adjustments the Company Assets (In thousands) Cash and cash equivalents $ 66,109 66,109 Securities available-for-sale 186,038 186,038 Federal Home Loan Bank stock 1,593 1,593 Loans held for sale 1,282 1,282 Loans receivable 783,779 (24,620 )(a) 759,159 Allowance for loan losses (9,495 ) 9,495 (b) — Premises and equipment 10,761 1,500 (c) 12,261 Foreclosed assets 1,922 (556 )(d) 1,366 Core deposit intangible 1,410 11,090 (e) 12,500 Deferred tax asset, net 3,961 238 (f) 4,199 Other assets 33,552 (3,417 )(g) 30,135 Total assets acquired $ 1,080,912 (6,270 ) 1,074,642 Liabilities Deposits $ 952,573 78 (h) 952,651 Borrowings 26,810 (1,439 )(i) 25,371 Other liabilities 8,515 (284 )(j) 8,231 Total liabilities assumed $ 987,898 (1,645 ) 986,253 Net identifiable assets acquired over liabilities assumed 88,389 Total consideration paid 178,694 Goodwill $ 90,305 Explanation of fair value adjustments: (a) Represents the amount necessary to adjust loans to their fair value due to interest rate and credit factors. (b) Reflects the elimination of First South’s historical allowance for loan losses. (c) Reflects fair value adjustments on acquired branch and administrative offices based on the Company’s assessment. (d) Reflects the impact of acquisition accounting fair value adjustments. (e) Reflects the fair value adjustment to record the estimated core deposit intangible based on the Company’s assessment. (f) Reflects the tax impact of acquisition accounting fair value adjustments. (g) Reflects the fair value adjustment based on the Company’s evaluation of acquired other assets. (h) Represents the fair value adjustment due to interest rate factors. (i) Represents the fair value adjustment due to interest rate factors. (j) Reflects the fair value adjustment based on the Company’s evaluation of acquired other liabilities. |
Greer Bancshares [Member] | |
Schedule of Assets and Liabilities Acquired [Table Text Block] | The following table presents a summary of total consideration paid by the Company at the acquisition date (dollars in thousand). Common stock issued (1,789,523 shares at $30.30 per share) $ 54,223 Cash payments to common stockholders 4,422 Total consideration paid $ 58,645 |
Schedule of loans acquired at the Acquisition date | The following table summarizes the consideration paid by the Company in the merger with Greer and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date. As Reported Fair Value As Recorded by March 18, 2017 by Greer Adjustments the Company Assets (In thousands) Cash and cash equivalents $ 42,187 — 42,187 Securities available for sale 121,374 — 121,374 Loans held for sale 105 — 105 Loans receivable 205,209 (10,559 )(a) 194,650 Allowance for loan losses (3,198 ) 3,198 (b) — Premises and equipment 3,928 4,202 (c) 8,130 Foreclosed assets 42 — 42 Core deposit intangible — 4,480 (d) 4,480 Deferred tax asset, net 3,831 (1,434 )(e) 2,397 Other assets 11,367 (241 )(f) 11,126 Total assets acquired $ 384,845 (354 ) 384,491 Liabilities Deposits $ 310,866 200 (g) 311,066 Borrowings 43,712 (3,510 )(h) 40,202 Other liabilities 7,086 512 (i) 7,598 Total liabilities assumed $ 361,664 (2,798 ) 358,866 Net identifiable assets acquired over liabilities assumed 25,625 Total consideration paid 58,645 Goodwill $ 33,020 Explanation of fair value adjustments: (a) Adjustment represents the amount necessary to adjust loans to their fair value due to interest rate and credit factors. (b) Adjustment reflects the elimination of Greer’s historical allowance for loan losses. (c) Adjustment reflects fair value adjustments on acquired branch and administrative offices based on third party appraisals. (d) Adjustment reflects the fair value adjustment to record the estimated core deposit intangible based on the Company’s third party valuation report. (e) Adjustment reflects the tax impact of acquisition accounting fair value adjustments. (f) Adjustment reflects the fair value adjustment based on the Company’s evaluation of acquired other assets. (g) Adjustment represents the fair value adjustment due to interest rate factors. (h) Adjustment represents the fair value adjustment due to interest rate factors. (i) Adjustment reflects the fair value adjustment based on the Company’s evaluation of acquired other liabilities. |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investment securities available for sale | The amortized cost, gross unrealized gains, gross unrealized losses and fair value of securities available-for-sale at June 30, 2018 and December 31, 2017 follows: June 30, 2018 December 31, 2017 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Securities available-for-sale: (In thousands) Municipal securities $ 200,526 2,508 (1,457 ) 201,577 240,904 6,790 (344 ) 247,350 US government agencies 13,000 — (55 ) 12,945 11,983 34 (9 ) 12,008 Collateralized loan obligations 172,154 404 (50 ) 172,508 128,080 581 (18 ) 128,643 Corporate securities 6,902 90 (4 ) 6,989 6,891 115 — 7,006 Mortgage-backed securities: Agency 236,826 504 (3,574 ) 233,757 243,075 1,234 (714 ) 243,595 Non-agency 167,028 540 (1,684 ) 165,884 94,834 551 (260 ) 95,125 Total mortgage-backed securities 403,854 1,044 (5,258 ) 399,641 337,909 1,785 (974 ) 338,720 Trust preferred securities 11,236 1,757 (1,686 ) 11,308 11,208 1,132 (2,828 ) 9,512 Total $ 807,672 5,803 (8,510 ) 804,968 736,975 10,437 (4,173 ) 743,239 |
Schedule of amortized costs and fair values of investment securities, by contractual maturity | The amortized cost and fair value of debt securities by contractual maturity at June 30, 2018 follows: At June 30, 2018 Amortized Fair Cost Value (In thousands) Securities available-for-sale: Less than one year $ 309 309 One to five years 9,161 9,149 Six to ten years 111,914 111,531 After ten years 686,288 683,979 Total $ 807,672 804,968 |
Schedule of gross realized gains and losses from sales of investment securities available-for-sale | The following table summarizes the gross realized gains and losses from sales of investment securities available-for-sale for the periods indicated. For the Three Months For the Six Months Ended June 30, Ended June 30, 2018 2017 2018 2017 (In thousands) Proceeds $ 34,122 43,324 85,300 81,021 Realized gains $ 55 647 69 1,020 Realized losses (801 ) (26 ) (1,512 ) (214 ) Total investment securities gains (losses), net $ (746 ) 621 (1,443 ) 806 |
Schedule of securities in a continuous unrealized loss position aggregated by investment category and length of time | The following tables summarize gross unrealized losses on investment securities and the fair market value of the related securities at June 30, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position. At June 30, 2018 Less than 12 Months 12 Months or Greater Total Amortized Fair Unrealized Amortized Fair Unrealized Amortized Fair Unrealized Cost Value Losses Cost Value Losses Cost Value Losses (In thousands) Available-for-sale: Municipal securities $ 80,659 79,430 (1,229 ) 3,574 3,346 (228 ) 84,233 82,776 (1,457 ) US government agencies 13,000 12,945 (55 ) — — — 13,000 12,945 (55 ) Collateralized loan obligations 57,909 57,859 (50 ) — — — 57,909 57,859 (50 ) Corporate securities 479 475 (4 ) — — — 479 475 (4 ) Mortgage-backed securities: Agency 170,067 167,006 (3,061 ) 19,824 19,311 (513 ) 189,891 186,317 (3,574 ) Non-agency 100,771 99,166 (1,605 ) 10,691 10,613 (78 ) 111,462 109,779 (1,684 ) Total mortgage-backed securities 270,838 266,172 (4,666 ) 30,515 29,924 (591 ) 301,353 296,096 (5,258 ) Trust preferred securities — — — 8,467 6,781 (1,686 ) 8,467 6,781 (1,686 ) Total $ 422,885 416,881 (6,004 ) 42,556 40,051 (2,505 ) 465,441 456,932 (8,510 ) At December 31, 2017 Less than 12 Months 12 Months or Greater Total Amortized Fair Unrealized Amortized Fair Unrealized Amortized Fair Unrealized Cost Value Losses Cost Value Losses Cost Value Losses (In thousands) Available-for-sale: Municipal securities $ 23,849 23,631 (218 ) 3,606 3,480 (126 ) 27,455 27,111 (344 ) US government agencies 1,681 1,672 (9 ) — — — 1,681 1,672 (9 ) Collateralized loan obligations 23,000 22,982 (18 ) — — — 23,000 22,982 (18 ) Mortgage-backed securities: Agency 107,501 107,011 (490 ) 17,484 17,260 (224 ) 124,985 124,271 (714 ) Non-agency 21,874 21,704 (170 ) 9,889 9,799 (90 ) 31,763 31,503 (260 ) Total mortgage-backed securities 129,375 128,715 (660 ) 27,373 27,059 (314 ) 156,748 155,774 (974 ) Trust preferred securities — — — 8,516 5,688 (2,828 ) 8,516 5,688 (2,828 ) Total $ 177,905 177,000 (905 ) 39,495 36,227 (3,268 ) 217,400 213,227 (4,173 ) |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative positions of Company | The derivative positions of the Company at June 30, 2018 and December 31, 2017 are as follows: At June 30, At December 31, 2018 2017 Fair Notional Fair Notional Value Value Value Value (In thousands) Derivative assets: Cash flow hedges: Interest rate swaps $ 2,007 70,000 644 45,000 Non-hedging derivatives: Interest rate swaps 2,007 45,000 964 50,000 Mortgage loan interest rate lock commitments 1,476 126,031 890 98,584 Mortgage-backed securities forward sales commitments 511 25,853 305 23,401 Total derivative assets $ 6,001 266,884 2,803 216,985 Derivative liabilities: Non-hedging derivatives: Interest rate swaps — — 95 5,000 Mortgage-backed securities forward sales commitments 129 90,000 61 75,000 Total derivative liabilities $ 129 90,000 156 80,000 |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of categories of loans | Loans receivable, net at June 30, 2018 and December 31, 2017 are summarized by category as follows: At June 30, At December 31, 2018 2017 % of Total % of Total All Loans: Amount Loans Amount Loans (Dollars in thousands) Loans secured by real estate: One-to-four family $ 699,435 28.82 % 665,774 28.70 % Home equity 87,946 3.62 % 90,141 3.89 % Commercial real estate 940,558 38.75 % 933,820 40.26 % Construction and development 327,778 13.50 % 294,793 12.71 % Consumer loans 16,041 0.66 % 19,990 0.86 % Commercial business loans 355,463 14.65 % 315,010 13.58 % Total gross loans receivable 2,427,221 100.00 % 2,319,528 100.00 % Less: Allowance for loan losses 12,987 11,478 Total loans receivable, net $ 2,414,234 2,308,050 |
Schedule of loan acquired non-credit impaired loans and nonacquired loans | Loans receivable, net at June 30, 2018 and December 31, 2017 for purchased non-credit impaired loans and nonacquired loans are summarized by category as follows: At June 30, At December 31, 2018 2017 Purchased Non-Credit Impaired Loans % of Total % of Total (ASC 310-20) and Nonacquired Loans: Amount Loans Amount Loans (Dollars in thousands) Loans secured by real estate: One-to-four family $ 689,934 29.20 % 654,597 29.21 % Home equity 87,855 3.72 % 89,961 4.01 % Commercial real estate 901,372 38.15 % 891,469 39.77 % Construction and development 320,902 13.58 % 287,437 12.83 % Consumer loans 15,963 0.68 % 19,895 0.89 % Commercial business loans 346,677 14.67 % 297,754 13.29 % Total gross loans receivable 2,362,703 100.00 % 2,241,113 100.00 % Less: Allowance for loan losses 12,987 11,478 Total loans receivable, net $ 2,349,716 2,229,635 Loans receivable, net at June 30, 2018 for purchased credit impaired loans are summarized by category below. At June 30, At December 31, 2018 2017 Purchased Credit Impaired % of Total % of Total Loans (ASC 310-30): Amount Loans Amount Loans (Dollars in thousands) (Dollars in thousands) Loans secured by real estate: One-to-four family $ 9,501 14.73 % 11,177 14.25 % Home equity 91 0.14 % 180 0.23 % Commercial real estate 39,186 60.14 % 42,351 54.01 % Construction and development 6,876 10.66 % 7,356 9.38 % Consumer loans 78 0.11 % 95 0.12 % Commercial business loans 8,786 13.62 % 17,256 22.01 % Total gross loans receivable 64,518 100.00 % 78,415 100.00 % Less: Allowance for loan losses — — Total loans receivable, net $ 64,518 78,415 |
Schedule of changes in the value of the accretable yield for PCI loans | The following table presents changes in the value of PCI loans receivable for the three and six months ended June 30, 2018: For the Three Months For the Six Months Ended June 30, 2018 Ended June 30, 2018 (In thousands) (In thousands) Balance at beginning of period $ 71,030 $ 78,415 Net reductions for payments, foreclosures, and accretion 6,512 13,897 Balance at end of period $ 64,518 $ 64,518 The following table presents changes in the value of the accretable yield for PCI loans for the three and six months ended June 30, 2018 (in thousands): For the Three Months For the Six Months Ended June 30, 2018 Ended June 30, 2018 (In thousands) (In thousands) Accretable yield, beginning of period $ 15,745 $ 12,536 Additions — — Accretion (1,224 ) (2,556 ) Reclassification from nonaccretable balance, net 207 3,403 Other changes, net (58 ) 1,287 Accretable yield, end of period $ 14,670 $ 14,670 |
Schedule of composition of gross loans outstanding, net of undisbursed amounts, by rate type | The composition of gross loans outstanding, net of undisbursed amounts, by rate type is as follows: At June 30, At December 31, 2018 2017 (Dollars in thousands) Variable rate loans $ 914,923 37.69 % 807,748 34.82 % Fixed rate loans 1,512,298 62.31 % 1,511,780 65.18 % Total loans outstanding $ 2,427,221 100.00 % 2,319,528 100.00 % |
Schedule of activity in the allowance for loan losses | The following table presents activity in the allowance for loan losses for the period indicated. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Allowance for loan losses: For the Three Months Ended June 30, 2018 Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) Balance, beginning of period $ 3,010 226 4,144 2,032 75 2,873 348 12,708 Provision for loan losses 240 (24 ) 205 49 153 (309 ) 246 559 Charge-offs (147 ) — (52 ) — (129 ) (27 ) — (355 ) Recoveries 7 — 42 1 18 6 — 74 Balance, end of period $ 3,110 202 4,339 2,082 117 2,543 594 12,987 For the Three Months Ended June 30, 2017 Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) Balance, beginning of period $ 2,506 236 3,613 943 110 2,498 809 10,715 Provision for loan losses 237 (18 ) (283 ) 4 (16 ) 359 (283 ) — Charge-offs (19 ) — — — (1 ) — — (20 ) Recoveries 1 — 1 1 8 44 — 55 Balance, end of period $ 2,725 218 3,331 948 101 2,901 526 10,750 Allowance for loan losses: For the Six Months Ended June 30, 2018 Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) Balance, beginning of period $ 2,719 168 3,986 1,201 79 2,840 485 11,478 Provision for loan losses 526 26 392 (155 ) 118 (456 ) 109 559 Charge-offs (147 ) — (86 ) (1 ) (138 ) (116 ) — (488 ) Recoveries 12 8 47 1,037 58 275 — 1,437 Balance, end of period $ 3,110 202 4,339 2,082 117 2,543 594 12,987 For the Six Months Ended June 30, 2017 Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) Balance, beginning of period $ 2,636 197 3,344 1,132 80 2,805 494 10,688 Provision for loan losses 122 21 (39 ) (186 ) 20 30 32 — Charge-offs (35 ) — — — (10 ) — — (45 ) Recoveries 2 — 26 2 11 66 — 107 Balance, end of period $ 2,725 218 3,331 948 101 2,901 526 10,750 |
Schedule of allowance for loan losses and recorded investment in loans by impairment methodology | The following table disaggregates our allowance for loan losses and recorded investment in loans by impairment methodology. Loans Secured by Real Estate One-to- Commercial Construction four Home real and Commercial family equity estate development Consumer business Unallocated Total (In thousands) At June 30, 2018: Allowance for loan losses ending balances: Individually evaluated for impairment $ 204 29 142 534 — 11 — 920 Collectively evaluated for impairment 2,906 173 4,197 1,548 117 2,532 594 12,067 $ 3,110 202 4,339 2,082 117 2,543 594 12,987 Loans receivable ending balances: Individually evaluated for impairment $ 3,698 126 4,636 1,840 19 754 — 11,073 Collectively evaluated for impairment 686,236 87,729 896,736 319,062 15,944 345,923 — 2,351,630 Purchased Credit-Impaired Loans 9,501 91 39,186 6,876 78 8,786 — 64,518 Total loans receivable $ 699,435 87,946 940,558 327,778 16,041 355,463 — 2,427,221 At December 31, 2017: Allowance for loan losses ending balances: Individually evaluated for impairment $ 64 29 — — — 16 — 109 Collectively evaluated for impairment 2,655 139 3,986 1,201 79 2,824 485 11,369 $ 2,719 168 3,986 1,201 79 2,840 485 11,478 Loans receivable ending balances: Individually evaluated for impairment $ 3,435 108 4,811 318 26 285 — 8,983 Collectively evaluated for impairment 651,162 89,853 886,658 287,119 19,869 297,469 — 2,232,130 Purchased Credit-Impaired Loans 11,177 180 42,351 7,356 95 17,256 — 78,415 Total loans receivable $ 665,774 90,141 933,820 294,793 19,990 315,010 — 2,319,528 |
Schedule of impaired loans by class of loans | The following table presents impaired loans individually evaluated for impairment in the segmented portfolio categories and the corresponding allowance for loan losses as of June 30, 2018 and December 31, 2017. The recorded investment is defined as the original amount of the loan, net of any deferred costs and fees, less any principal reductions and direct charge-offs. Unpaid principal balance includes amounts previously included in charge-offs. At June 30, 2018 At December 31, 2017 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 2,250 2,375 — 2,725 2,846 — Home equity 68 68 — — — — Commercial real estate 2,824 2,824 — 3,370 3,370 — Construction and development 267 267 — 318 318 — Consumer loans 19 19 — 26 26 — Commercial business loans 599 599 — 113 114 — 6,027 6,152 — 6,552 6,674 — With an allowance recorded: Loans secured by real estate: One-to-four family 1,448 1,486 204 710 710 64 Home equity 58 58 29 108 108 29 Commercial real estate 1,812 1,894 142 1,441 1,441 — Construction and development 1,573 1,573 534 — — — Consumer loans — — — — — — Commercial business loans 155 155 11 172 172 16 5,046 5,166 920 2,431 2,431 109 Total: Loans secured by real estate: One-to-four family 3,698 3,861 204 3,435 3,556 64 Home equity 126 126 29 108 108 29 Commercial real estate 4,636 4,718 142 4,811 4,811 — Construction and development 1,840 1,840 534 318 318 — Consumer loans 19 19 — 26 26 — Commercial business loans 754 754 11 285 286 16 $ 11,073 11,318 920 8,983 9,105 109 The following table presents the average recorded investment and interest income recognized on impaired loans individually evaluated for impairment in the segmented portfolio categories for the three and six months ended June 30, 2018 and 2017. For the Three Months Ended June 30, For the Six Months Ended June 30, 2018 2017 2018 2017 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 2,199 (14 ) 3,027 (15 ) 2,107 2 2,953 21 Home equity 17 — 347 9 8 1 258 12 Commercial real estate 2,971 (31 ) 4,016 (37 ) 3,012 49 4,043 98 Construction and development 267 5 158 8 267 9 87 8 Consumer loans 20 — 19 — 21 — 19 — Commercial business loans 183 9 32 (16 ) 103 14 35 1 5,657 (31 ) 7,599 (51 ) 5,518 75 7,395 140 With an allowance recorded: Loans secured by real estate: One-to-four family 1,481 5 992 5 1,489 16 803 8 Home equity 88 (3 ) 274 (2 ) 96 — 233 (1 ) Commercial real estate 1,839 18 1,009 (67 ) 1,793 39 1,014 — Construction and development 1,447 — — — 922 (4 ) — — Consumer loans — — — — — — — Commercial business loans 159 2 205 — 164 5 211 6 5,014 22 2,480 (64 ) 4,464 56 2,261 13 Total: Loans secured by real estate: One-to-four family 3,680 (9 ) 4,019 (10 ) 3,596 18 3,756 29 Home equity 105 (3 ) 621 7 104 1 491 11 Commercial real estate 4,810 (13 ) 5,025 (104 ) 4,805 88 5,057 98 Construction and development 1,714 5 158 8 1,189 5 87 8 Consumer loans 20 — 19 — 21 — 19 — Commercial business loans 342 11 237 (16 ) 267 19 246 7 $ 10,671 (9 ) 10,079 (115 ) 9,982 131 9,656 153 |
Schedule of aging of the recorded investment in past due loans by class of loans | A loan is considered past due if the required principal and interest payment has not been received as of the due date. The following schedule is an aging of past due loans receivable by portfolio segment as of June 30, 2018 and December 31, 2017. At June 30, 2018 Real Estate Loans One-to- Commercial Construction four Home real and Commercial All Loans: family equity estate development Consumer business Total (In thousands) 30-59 days past due $ 1,343 567 918 274 239 327 3,668 60-89 days past due 870 164 1,411 52 23 119 2,639 90 days or more past due 2,997 215 611 989 23 750 5,585 Total past due 5,210 946 2,940 1,315 285 1,196 11,892 Current 694,225 87,000 937,618 326,463 15,756 354,267 2,415,329 Total loans receivable $ 699,435 87,946 940,558 327,778 16,041 355,463 2,427,221 At June 30, 2018 Purchased Non-Credit Real Estate Loans Impaired Loans (ASC 310-20) and Nonacquired Loans: One-to- Home Commercial Construction Consumer Commercial Total (In thousands) 30-59 days past due $ 1,264 556 826 274 239 327 3,486 60-89 days past due 798 164 1,411 41 23 119 2,556 90 days or more past due 2,582 210 611 87 23 750 4,263 Total past due 4,644 930 2,848 402 285 1,196 10,305 Current 685,290 86,925 898,524 320,500 15,678 345,481 2,352,398 Total loans receivable $ 689,934 87,855 901,372 320,902 15,963 346,677 2,362,703 At June 30, 2018 Real Estate Loans Purchased Credit One-to- Home Commercial Construction Consumer Commercial Total (In thousands) 30-59 days past due $ 79 11 92 — — — 182 60-89 days past due 72 — — 11 — — 83 90 days or more past due 415 5 — 902 — — 1,322 Total past due 566 16 92 913 — — 1,587 Current 8,935 75 39,094 5,963 78 8,786 62,931 Total loans receivable $ 9,501 91 39,186 6,876 78 8,786 64,518 At December 31, 2017 Real Estate Loans One-to- Commercial Construction four Home real and Commercial All Loans: family equity estate development Consumer business Total (In thousands) 30-59 days past due $ 8,139 1,350 1,358 2,328 108 366 13,649 60-89 days past due 1,025 109 421 — 129 185 1,869 90 days or more past due 2,580 117 689 2,482 21 59 5,948 Total past due 11,744 1,576 2,468 4,810 258 610 21,466 Current 654,030 88,565 931,352 289,983 19,732 314,400 2,298,062 Total loans receivable $ 665,774 90,141 933,820 294,793 19,990 315,010 2,319,528 At December 31, 2017 Purchased Non-Credit Real Estate Loans Impaired Loans One-to- Commercial Construction (ASC 310-20) and four Home real and Commercial Nonpurchased Loans: family equity estate development Consumer business Total (In thousands) 30-59 days past due $ 7,874 1,319 1,112 2,315 108 366 13,094 60-89 days past due 1,000 109 421 — 129 185 1,844 90 days or more past due 1,894 108 689 1,297 21 59 4,068 Total past due 10,768 1,536 2,222 3,612 258 610 19,006 Current 643,829 88,425 889,247 283,825 19,637 297,144 2,222,107 Total loans receivable $ 654,597 89,961 891,469 287,437 19,895 297,754 2,241,113 At December 31, 2017 Real Estate Loans One-to- Commercial Construction Purchased Credit Impaired four Home real and Commercial Loans (ASC 310-30): family equity estate development Consumer business Total (In thousands) 30-59 days past due $ 265 31 246 13 — — 555 60-89 days past due 25 — — — — — 25 90 days or more past due 686 9 — 1,185 — — 1,880 Total past due 976 40 246 1,198 — — 2,460 Current 10,201 140 42,105 6,158 95 17,256 75,955 Total loans receivable $ 11,177 180 42,351 7,356 95 17,256 78,415 |
Schedule of analysis of loans receivables on nonaccrual status | The following is a schedule of loans receivable, by portfolio segment, on nonaccrual at June 30, 2018 and December 31, 2017. At June 30, At December 31, 2018 2017 Loans secured by real estate: (In thousands) One-to-four family $ 2,909 1,927 Home equity 231 108 Commercial real estate 2,710 1,540 Construction and development 1,661 51 Consumer loans 100 22 Commercial business loans 812 313 $ 8,423 3,961 |
Schedule of analysis of loan portfolio by credit quality indicators | The following is a schedule of the credit quality of loans receivable, by portfolio segment, as of June 30, 2018 and December 31, 2017. At June 30, 2018 Real Estate Loans One-to- Commercial Construction four Home real and Commercial Total Loans: family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 694,822 87,754 915,661 321,280 15,838 348,154 2,383,509 Special Mention 877 7 17,605 3,280 103 4,970 26,842 Substandard 3,736 185 7,292 3,218 100 2,339 16,870 Total loans receivable $ 699,435 87,946 940,558 327,778 16,041 355,463 2,427,221 Performing $ 696,111 87,710 937,848 325,215 15,922 354,651 2,417,457 Nonperforming: 90 days past due still accruing 415 5 — 902 19 — 1,341 Nonaccrual 2,909 231 2,710 1,661 100 812 8,423 Total nonperforming 3,324 236 2,710 2,563 119 812 9,764 Total loans receivable $ 699,435 87,946 940,558 327,778 16,041 355,463 2,427,221 At June 30, 2018 Purchased Non-Credit Real Estate Loans Impaired Loans One-to- Commercial Construction (ASC 310-20) and four Home real and Commercial Nonacquired Loans: family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 687,208 87,692 892,865 319,206 15,760 341,870 2,344,601 Special Mention — — 4,980 74 103 3,945 9,102 Substandard 2,726 163 3,527 1,622 100 862 9,000 Total loans receivable $ 689,934 87,855 901,372 320,902 15,963 346,677 2,362,703 Performing $ 687,025 87,624 898,662 319,241 15,844 345,865 2,354,261 Nonperforming: 90 days past due still accruing — — — — 19 — 19 Nonaccrual 2,909 231 2,710 1,661 100 812 8,423 Total nonperforming 2,909 231 2,710 1,661 119 812 8,442 Total loans receivable $ 689,934 87,855 901,372 320,902 15,963 346,677 2,362,703 At June 30, 2018 Real Estate Loans One-to- Commercial Construction Purchased Credit Impaired four Home real and Commercial Loans (ASC 310-30): family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 7,614 62 22,796 2,074 78 6,284 38,908 Special Mention 877 7 12,625 3,206 — 1,025 17,740 Substandard 1,010 22 3,765 1,596 — 1,477 7,870 Total loans receivable $ 9,501 91 39,186 6,876 78 8,786 64,518 Performing $ 9,086 86 39,186 5,974 78 8,786 63,196 Nonperforming: 90 days past due still accruing 415 5 — 902 — — 1,322 Nonaccrual — — — — — — — Total nonperforming 415 — — — — — 1,322 Total loans receivable $ 9,501 91 39,186 6,876 78 8,786 64,518 At December 31, 2017 Real Estate Loans One-to- Commercial Construction four Home real and Commercial Total Loans: family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 658,031 89,919 898,328 287,491 19,817 296,038 2,249,624 Special Mention 4,086 30 28,670 4,201 35 12,339 49,361 Substandard 3,657 192 6,822 3,101 138 6,633 20,543 Total loans receivable $ 665,774 90,141 933,820 294,793 19,990 315,010 2,319,528 Performing $ 663,161 90,024 932,280 293,557 19,968 314,697 2,313,687 Nonperforming: 90 days past due still accruing 686 9 — 1,185 — — 1,880 Nonaccrual 1,927 108 1,540 51 22 313 3,961 Total nonperforming 2,613 117 1,540 1,236 22 313 5,841 Total loans receivable $ 665,774 90,141 933,820 294,793 19,990 315,010 2,319,528 At December 31, 2017 Purchased Non-Credit Real Estate Loans Impaired Loans One-to- Commercial Construction (ASC 310-20) and four Home real and Commercial Nonpurchased Loans: family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 652,508 89,853 887,458 286,857 19,785 295,470 2,231,931 Special Mention — — 2,526 79 — 2,067 4,672 Substandard 2,089 108 1,485 501 110 217 4,510 Total loans receivable $ 654,597 89,961 891,469 287,437 19,895 297,754 2,241,113 Performing $ 652,670 89,853 889,929 287,386 19,873 297,441 2,237,152 Nonperforming: 90 days past due still accruing — — — — — — — Nonaccrual 1,927 108 1,540 51 22 313 3,961 Total nonperforming 1,927 108 1,540 51 22 313 3,961 Total loans receivable $ 654,597 89,961 891,469 287,437 19,895 297,754 2,241,113 At December 31, 2017 Real Estate Loans One-to- Commercial Construction Purchased Credit Impaired four Home real and Commercial Loans (ASC 310-30): family equity estate development Consumer business Total (In thousands) Internal Risk Rating Grades: Pass $ 5,523 66 10,870 634 32 568 17,693 Special Mention 4,086 30 26,144 4,122 35 10,272 44,689 Substandard 1,568 84 5,337 2,600 28 6,416 16,033 Total loans receivable $ 11,177 180 42,351 7,356 95 17,256 78,415 Performing $ 10,491 171 42,351 6,171 95 17,256 76,535 Nonperforming: 90 days past due still accruing 686 9 — 1,185 — — 1,880 Nonaccrual — — — — — — — Total nonperforming 686 9 — 1,185 — — 1,880 Total loans receivable $ 11,177 180 42,351 7,356 95 17,256 78,415 |
REAL ESTATE ACQUIRED THROUGH 23
REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Summary of Changes in Other Real Estate Owned | The following presents summarized activity in real estate acquired through foreclosure for the periods ended June 30, 2018 and December 31, 2017: At June 30, At December 31, 2018 2017 (In thousands) Balance at beginning of period $ 3,106 1,179 Additions 91 2,554 Sales (1,345 ) (627 ) Write downs (126 ) — Balance at end of period $ 1,726 3,106 |
Schedule of composition of other real estate owned | A summary of the composition of real estate acquired through foreclosure follows: At June 30, At December 31, 2018 2017 (In thousands) Real estate loans: One-to-four family $ 433 709 Construction and development 1,293 2,397 $ 1,726 $ 3,106 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Summary of Deposits outstanding | Deposits outstanding by type of account at June 30, 2018 and December 31, 2017 are summarized as follows: At June 30, At December 31, 2018 2017 (In thousands) Noninterest-bearing demand accounts $ 577,568 525,615 Interest-bearing demand accounts 584,719 551,308 Savings accounts 198,571 213,142 Money market accounts 458,558 452,734 Certificates of deposit: Less than $250,000 788,693 755,887 $250,000 or more 100,689 106,243 Total certificates of deposit 889,382 862,130 Total deposits $ 2,708,798 2,604,929 |
ESTIMATED FAIR VALUE OF FINAN25
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are as follows as of June 30, 2018 and December 31, 2017: Quoted market Significant other Significant other price in active observable inputs unobservable inputs markets (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2018 Available-for-sale investment securities: Municipal securities $ — 201,577 — US government agencies — 12,945 — Collateralized loan obligations — 172,508 — Corporate securities — 6,989 — Mortgage-backed securities: Agency — 233,757 — Non-agency — 165,884 — Trust Preferred Securities — — 11,308 Loans held for sale — 39,473 — Derivative assets: Cash flow hedges: Interest rate swaps 2,007 — — Non-hedging derivatives: Interest rate swaps 2,007 — — Mortgage loan interest rate lock commitments — 1,476 — Mortgage loan forward sales commitments — 511 — Derivative liabilities: Non-hedging derivatives: Interest rate swaps — — — Mortgage-backed securities forward sales commitments — 129 — Total $ 4,014 835,249 11,308 December 31, 2017 Available-for-sale investment securities: Municipal securities $ — 247,350 — US government agencies — 12,008 — Collateralized loan obligations — 128,643 — Corporate securities — 7,006 — Mortgage-backed securities: Agency — 243,595 — Non-agency — 95,125 — Trust preferred securities — — 9,512 Loans held for sale — 35,292 — Derivative assets: Cash flow hedges: Interest rate swaps 644 — — Non-hedging derivatives: Interest rate swaps 964 — — Mortgage loan interest rate lock commitments — 890 — Mortgage loan forward sales commitments — 305 — Derivative liabilities: Non-hedging derivatives: Interest rate swaps 95 — — Mortgage-backed securities forward sales commitments — 61 — Total $ 1,703 770,275 9,512 |
Summary of assets and liabilities measured at a fair value on a nonrecurring basis | Assets measured at fair value on a nonrecurring basis are as follows as of June 30, 2018 and December 31, 2017: Quoted market price Significant other Significant other in active markets observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2018 Impaired loans: Loans secured by real estate: One-to-four family $ — — 3,494 Home equity — — 97 Commercial real estate — — 4,494 Construction and development — — 1,306 Consumer loans — — 19 Commercial business loans — — 743 Real estate owned: One-to-four family — — 433 Construction and development — — 1,293 Mortgage servicing rights — — 29,890 Total $ — — 41,769 December 31, 2017 Impaired loans: Loans secured by real estate: One-to-four family $ — — 3,371 Home equity — — 79 Commercial real estate — — 4,811 Construction and development — — 318 Consumer loans — — 26 Commercial business loans — — 269 Real estate owned: One-to-four family — — 709 Construction and development — — 2,397 Mortgage servicing rights — — 26,255 Total $ — — 38,235 |
Schedule of significant unobservable inputs used in the fair value measurements | For Level 3 assets and liabilities measured at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017, the significant unobservable inputs used in the fair value measurements were as follows: June 30, 2018 and December 31, 2017 Significant Significant Unobservable Valuation Technique Observable Inputs Inputs Impaired Loans Appraisal Value Appraisals and or sales of Appraisals discounted 10% to 20% for Real Estate Owned Appraisal Value/ Appraisals and or sales of Appraisals discounted 10% to 20% for Mortgage Servicing Rights Discounted cash flows Comparable sales Discount rates averaging 11.5% - 13% |
Schedule of carrying amount and estimated fair value of the Company's financial instruments | The carrying amount and estimated fair value of the Company’s financial instruments at June 30, 2018 and December 31, 2017 are as follows: At June 30, 2018 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 27,327 27,327 27,327 — — Interest-bearing cash 54,751 54,751 54,751 — — Securities available-for-sale 804,968 804,968 — 793,660 11,308 Federal Home Loan Bank stock 19,019 19,019 — — 19,019 Other investments 3,429 3,429 — — 3,429 Derivative assets 6,001 6,001 4,014 1,987 — Loans held for sale 39,473 39,473 — 39,473 — Loans receivable, net 2,414,234 2,422,163 — — 2,422,163 Accrued interest receivable 12,664 12,664 — 12,664 — Real estate acquired through foreclosure 1,726 1,726 — — 1,726 Mortgage servicing rights 23,626 29,890 — — 29,890 Financial liabilities: Deposits 2,708,798 2,712,165 — 2,712,165 — Short-term borrowed funds 354,500 354,595 — 354,595 — Long-term debt 46,347 46,002 — 46,002 — Derivative liabilities 129 129 — 129 — Drafts outstanding 10,454 10,454 — 10,454 — Advances from borrowers for insurance and taxes 4,558 4,558 — 4,558 — Accrued interest payable 1,560 1,560 — 1,560 — Dividends payable to stockholders 1,354 1,354 — 1,354 — At December 31, 2017 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 25,254 25,254 25,254 — — Interest-bearing cash 55,998 55,998 55,998 — — Securities available-for-sale 743,239 743,239 — 733,727 9,512 Federal Home Loan Bank stock 19,065 19,065 — — 19,065 Other investments 3,446 3,446 — — 3,446 Derivative assets 2,803 2,803 1,608 1,195 — Loans held for sale 35,292 35,292 — 35,292 — Loans receivable, net 2,308,050 2,311,088 — — 2,311,088 Accrued interest receivable 11,992 11,992 11,992 Real estate acquired through foreclosure 3,106 3,106 — — 3,106 Mortgage servicing rights 21,003 26,255 — — 26,255 Financial liabilities: Deposits 2,604,929 2,597,526 — 2,597,526 — Short-term borrowed funds 340,500 339,870 — 339,870 — Long-term debt 72,259 71,859 — 71,859 — Derivative liabilities 156 156 95 61 — Drafts outstanding 7,324 7,324 — 7,324 — Advances from borrowers for insurance and taxes 3,005 3,005 — 3,005 — Accrued interest payable 1,126 1,126 — 1,126 — Dividends payable to stockholders 1,051 1,051 — 1,051 — |
Schedule of notional amount and estimated fair values of off-balance sheet financial instruments | At June 30, 2018 At December 31, 2017 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Off-Balance Sheet Financial Instruments: (In thousands) Commitments to extend credit $ 378,608 — 422,065 — Standby letters of credit 14,329 — 4,449 — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Earnings Per Share Tables Abstract | |
Schedule of reconciliation of average shares outstanding | The following is a summary of the reconciliation of weighted average shares outstanding for the three and six months ended June 30, 2018 and 2017: For the Three Months Ended June 30, 2018 2017 Basic Diluted Basic Diluted Weighted average shares outstanding 21,243,094 21,243,094 16,029,332 16,029,332 Effect of dilutive securities — 210,945 — 150,839 Weighted average shares outstanding 21,243,094 21,454,039 16,029,332 16,180,171 For the Six Months Ended June 30, 2018 2017 Basic Diluted Basic Diluted Weighted average shares outstanding 20,961,182 20,961,182 14,980,349 14,980,349 Effect of dilutive securities — 213,754 — 164,447 Weighted average shares outstanding 20,961,182 21,174,936 14,980,349 15,144,796 The following is a summary of the reconciliation of shares issued and outstanding and unvested restricted stock awards as of June 30, 2018 and 2017 used to calculate book value per share: As of June 30, 2018 2017 Issued and outstanding shares 22,570,182 16,156,943 Less nonvested restricted stock awards (137,345 ) (101,489 ) Period end dilutive shares 22,432,837 16,055,454 |
SUPPLEMENTAL SEGMENT INFORMAT27
SUPPLEMENTAL SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Selected Financial Information of Company's reportable business segments | The following tables present selected financial information for the Company’s reportable business segments for the three and six months ended June 30, 2018 and 2017: Community Mortgage For the Three Months Ended June 30, 2018 Banking Banking Other Eliminations Total (In thousands) Interest income $ 39,060 458 14 (55 ) 39,477 Interest expense 6,066 77 506 (77 ) 6,572 Net interest income (expense) 32,994 381 (492 ) 22 32,905 Provision for loan losses 534 25 — — 559 Noninterest income from external customers 5,570 5,434 23 — 11,027 Intersegment noninterest income 242 9 — (251 ) — Noninterest expense 19,348 4,748 275 — 24,371 Intersegment noninterest expense — 240 2 (242 ) — Income (loss) before income taxes 18,924 811 (746 ) 13 19,002 Income tax expense (benefit) 3,996 213 (178 ) 5 4,036 Net income (loss) $ 14,928 598 (568 ) 8 14,966 Community Mortgage For the Three Months Ended June 30, 2017 Banking Banking Other Eliminations Total (In thousands) Interest income $ 21,691 427 8 (3 ) 22,123 Interest expense 2,747 42 278 (42 ) 3,025 Net interest income (expense) 18,944 385 (270 ) 39 19,098 Provision for loan losses — — — — — Noninterest income from external customers 3,494 5,311 — — 8,805 Intersegment noninterest income 242 31 — (273 ) — Noninterest expense 11,448 4,164 278 — 15,890 Intersegment noninterest expense — 240 2 (242 ) — Income (loss) before income taxes 11,232 1,323 (550 ) 8 12,013 Income tax expense (benefit) 2,789 85 (204 ) 3 2,673 Net income (loss) $ 8,443 1,238 (346 ) 5 9,340 Community Mortgage For the Six Months Ended June 30, 2018 Banking Banking Other Eliminations Total (In thousands) Interest income $ 76,317 889 27 (79 ) 77,154 Interest expense 11,150 130 968 (130 ) 12,118 Net interest income (expense) 65,167 759 (941 ) 51 65,036 Provision for loan losses 534 25 — — 559 Noninterest income from external customers 10,630 10,358 88 — 21,076 Intersegment noninterest income 483 26 — (509 ) — Noninterest expense 52,278 9,137 554 1 61,970 Intersegment noninterest expense — 480 3 (483 ) — Income (loss) before income taxes 23,468 1,501 (1,410 ) 24 23,583 Income tax expense (benefit) 4,556 341 (345 ) 9 4,561 Net income (loss) $ 18,912 1,160 (1,065 ) 15 19,022 Community Mortgage For the Six Months June 30, 2017 Banking Banking Other Eliminations Total (In thousands) Interest income $ 38,949 822 13 8 39,792 Interest expense 4,965 54 459 (54 ) 5,424 Net interest income (expense) 33,984 768 (446 ) 62 34,368 Provision for loan losses — — — — — Noninterest income from external customers 5,912 10,123 — — 16,035 Intersegment noninterest income 483 64 — (547 ) — Noninterest expense 22,772 8,216 488 — 31,476 Intersegment noninterest expense — 480 3 (483 ) — Income (loss) before income taxes 17,607 2,259 (937 ) (2 ) 18,927 Income tax expense (benefit) 4,656 375 (346 ) (1 ) 4,684 Net income (loss) $ 12,951 1,884 (591 ) (1 ) 14,243 The following tables present selected financial information for the Company’s reportable business segments for June 30, 2018 and December 31, 2017: Community Mortgage At June 30, 2018 Banking Banking Other Eliminations Total (In thousands) Assets $ 3,690,507 83,258 584,455 (665,129 ) 3,693,091 Loans receivable, net 2,397,896 31,385 — (15,047 ) 2,414,234 Loans held for sale 15,990 23,483 — — 39,473 Deposits 2,718,920 — — (10,122 ) 2,708,798 Borrowed funds 368,500 14,600 32,347 (14,600 ) 400,847 Community Mortgage At December 31, 2017 Banking Banking Other Eliminations Total (In thousands) Assets $ 3,516,551 81,681 503,144 (582,359 ) 3,519,017 Loans receivable, net 2,295,316 28,206 — (15,472 ) 2,308,050 Loans held for sale 5,999 29,293 — — 35,292 Deposits 2,611,106 — — (6,177 ) 2,604,929 Borrowed funds 380,500 15,000 32,259 (15,000 ) 412,759 |
SUMMARY OF SIGNIFICANT ACCOUN28
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Value of common stock issued to company | $ 226 | $ 210 |
Common stock, shares authorized | 50,000,000 | 25,000,000 |
Statutory Business Trusts [Member] | ||
Principal amount owed | $ 36,000 | |
Principal assets of the Trusts | 37,100 | |
Value of common stock issued to company | $ 1,116 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Nov. 01, 2017 | Mar. 18, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Common stock issued | $ 226 | $ 210 | |||
Common stock issued | 22,570,182 | 21,022,202 | 16,156,943 | ||
First South Bancorp, Inc. [Member] | |||||
Common stock issued | $ 177,711 | ||||
Cash payments to common stockholders | 983 | ||||
Total consideration paid | $ 178,694 | ||||
Common stock issued | 4,822,540 | ||||
Greer Bancshares [Member] | |||||
Common stock issued | $ 54,223 | ||||
Cash payments to common stockholders | 4,422 | ||||
Total consideration paid | $ 58,645 | ||||
Common stock issued | 1,789,523 |
BUSINESS COMBINATIONS (Details
BUSINESS COMBINATIONS (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Nov. 01, 2017 | Mar. 18, 2017 | ||
Assets | ||||||
Loans receivable | $ 813,700 | $ 962,300 | ||||
Business Combination, Liabilities [Abstract] | ||||||
Goodwill | $ 127,592 | $ 127,592 | ||||
First South Bancorp, Inc. [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | $ 66,109 | |||||
Securities | 186,038 | |||||
Federal Home Loan Bank stock | 1,593 | |||||
Loans held for sale | 1,282 | |||||
Loans receivable | 783,779 | |||||
Allowance for loan losses | (9,495) | |||||
Premises and equipment | 10,761 | |||||
Foreclosed assets | 1,922 | |||||
Core deposit intangible | 1,410 | |||||
Deferred tax asset | 3,961 | |||||
Other assets | 33,552 | |||||
Total assets acquired | 1,080,912 | |||||
Business Combination, Liabilities [Abstract] | ||||||
Deposits | 952,573 | |||||
Borrowings | 26,810 | |||||
Other liabilities | 8,515 | |||||
Total liabilities assumed | 987,898 | |||||
Fair Value Adjustments [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | ||||||
Securities | ||||||
Federal Home Loan Bank stock | ||||||
Loans held for sale | ||||||
Loans receivable | (24,620) | [1] | (10,559) | [2] | ||
Allowance for loan losses | 9,495 | [3] | 3,198 | [4] | ||
Premises and equipment | 1,500 | [5] | 4,202 | [6] | ||
Foreclosed assets | (556) | [7] | ||||
Core deposit intangible | 11,090 | [8] | 4,480 | [9] | ||
Deferred tax asset | 238 | [10] | (1,434) | [11] | ||
Other assets | (3,417) | [12] | (241) | [13] | ||
Total assets acquired | (6,270) | (354) | ||||
Business Combination, Liabilities [Abstract] | ||||||
Deposits | 78 | [14] | 200 | [15] | ||
Borrowings | (1,439) | [14] | (3,510) | [15] | ||
Other liabilities | (284) | [16] | 512 | [17] | ||
Total liabilities assumed | (1,645) | (2,798) | ||||
As Recorded by the Company [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | 66,109 | 42,187 | ||||
Securities | 186,038 | 121,374 | ||||
Federal Home Loan Bank stock | 1,593 | |||||
Loans held for sale | 1,282 | |||||
Loans receivable | 759,159 | 194,650 | ||||
Allowance for loan losses | ||||||
Premises and equipment | 12,261 | 8,130 | ||||
Foreclosed assets | 1,366 | 42 | ||||
Core deposit intangible | 12,500 | 4,480 | ||||
Deferred tax asset | 4,199 | 2,397 | ||||
Other assets | 30,135 | 11,126 | ||||
Total assets acquired | 1,074,642 | 384,491 | ||||
Business Combination, Liabilities [Abstract] | ||||||
Deposits | 952,651 | 311,066 | ||||
Borrowings | 25,371 | 40,202 | ||||
Other liabilities | 8,231 | 7,598 | ||||
Total liabilities assumed | 986,253 | 358,866 | ||||
Net assets acquired | 88,389 | 25,625 | ||||
Total consideration paid | 178,694 | 58,645 | ||||
Goodwill | $ 90,305 | $ 33,020 | ||||
[1] | Represents the amount necessary to adjust loans to their fair value due to interest rate and credit factors. | |||||
[2] | Adjustment represents the amount necessary to adjust loans to their fair value due to interest rate and credit factors. | |||||
[3] | Reflects the elimination of First South's historical allowance for loan losses. | |||||
[4] | Adjustment reflects the elimination of Greer's historical allowance for loan losses. | |||||
[5] | Reflects fair value adjustments on acquired branch and administrative offices based on the Company's assessment. | |||||
[6] | Adjustment reflects fair value adjustments on acquired branch and administrative offices based on third party appraisals. | |||||
[7] | Reflects the impact of acquisition accounting fair value adjustments. | |||||
[8] | Reflects the fair value adjustment to record the estimated core deposit intangible based on the Company's assessment. | |||||
[9] | Adjustment reflects the fair value adjustment to record the estimated core deposit intangible based on the Company's third party valuation report. | |||||
[10] | Reflects the tax impact of acquisition accounting fair value adjustments. | |||||
[11] | Adjustment reflects the tax impact of acquisition accounting fair value adjustments. | |||||
[12] | Reflects the fair value adjustment based on the Company's evaluation of acquired other assets. | |||||
[13] | Adjustment reflects the fair value adjustment based on the Company's evaluation of acquired other assets. | |||||
[14] | Represents the fair value adjustment due to interest rate factors. | |||||
[15] | Adjustment represents the fair value adjustment due to interest rate factors. | |||||
[16] | Reflects the fair value adjustment based on the Company's evaluation of acquired other liabilities. | |||||
[17] | Adjustment reflects the fair value adjustment based on the Company's evaluation of acquired other liabilities. |
BUSINESS COMBINATIONS (Detail31
BUSINESS COMBINATIONS (Details 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Nov. 01, 2017 | Mar. 18, 2017 | ||
Assets | ||||||
Loans receivable | $ 813,700 | $ 962,300 | ||||
Liabilities | ||||||
Goodwill | $ 127,592 | $ 127,592 | ||||
Greer Bancshares [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | $ 42,187 | |||||
Securities | 121,374 | |||||
Loans held for sale | 105 | |||||
Loans receivable | 205,209 | |||||
Allowance for loan losses | (3,198) | |||||
Premises and equipment | 3,928 | |||||
Foreclosed assets | 42 | |||||
Core deposit intangible | ||||||
Deferred tax asset | 3,831 | |||||
Other assets | 11,367 | |||||
Total assets acquired | 384,845 | |||||
Liabilities | ||||||
Deposits | 310,866 | |||||
Borrowings | 43,712 | |||||
Other liabilities | 7,086 | |||||
Total liabilities assumed | 361,664 | |||||
Fair Value Adjustments [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | ||||||
Securities | ||||||
Loans held for sale | ||||||
Loans receivable | (24,620) | [1] | (10,559) | [2] | ||
Allowance for loan losses | 9,495 | [3] | 3,198 | [4] | ||
Premises and equipment | 1,500 | [5] | 4,202 | [6] | ||
Foreclosed assets | (556) | [7] | ||||
Core deposit intangible | 11,090 | [8] | 4,480 | [9] | ||
Deferred tax asset | 238 | [10] | (1,434) | [11] | ||
Other assets | (3,417) | [12] | (241) | [13] | ||
Total assets acquired | (6,270) | (354) | ||||
Liabilities | ||||||
Deposits | 78 | [14] | 200 | [15] | ||
Borrowings | (1,439) | [14] | (3,510) | [15] | ||
Other liabilities | (284) | [16] | 512 | [17] | ||
Total liabilities assumed | (1,645) | (2,798) | ||||
As Recorded by the Company [Member] | ||||||
Assets | ||||||
Cash and cash equivalents | 66,109 | 42,187 | ||||
Securities | 186,038 | 121,374 | ||||
Loans held for sale | 105 | |||||
Loans receivable | 759,159 | 194,650 | ||||
Allowance for loan losses | ||||||
Premises and equipment | 12,261 | 8,130 | ||||
Foreclosed assets | 1,366 | 42 | ||||
Core deposit intangible | 12,500 | 4,480 | ||||
Deferred tax asset | 4,199 | 2,397 | ||||
Other assets | 30,135 | 11,126 | ||||
Total assets acquired | 1,074,642 | 384,491 | ||||
Liabilities | ||||||
Deposits | 952,651 | 311,066 | ||||
Borrowings | 25,371 | 40,202 | ||||
Other liabilities | 8,231 | 7,598 | ||||
Total liabilities assumed | 986,253 | 358,866 | ||||
Net assets acquired | 88,389 | 25,625 | ||||
Total consideration paid | 178,694 | 58,645 | ||||
Goodwill | $ 90,305 | $ 33,020 | ||||
[1] | Represents the amount necessary to adjust loans to their fair value due to interest rate and credit factors. | |||||
[2] | Adjustment represents the amount necessary to adjust loans to their fair value due to interest rate and credit factors. | |||||
[3] | Reflects the elimination of First South's historical allowance for loan losses. | |||||
[4] | Adjustment reflects the elimination of Greer's historical allowance for loan losses. | |||||
[5] | Reflects fair value adjustments on acquired branch and administrative offices based on the Company's assessment. | |||||
[6] | Adjustment reflects fair value adjustments on acquired branch and administrative offices based on third party appraisals. | |||||
[7] | Reflects the impact of acquisition accounting fair value adjustments. | |||||
[8] | Reflects the fair value adjustment to record the estimated core deposit intangible based on the Company's assessment. | |||||
[9] | Adjustment reflects the fair value adjustment to record the estimated core deposit intangible based on the Company's third party valuation report. | |||||
[10] | Reflects the tax impact of acquisition accounting fair value adjustments. | |||||
[11] | Adjustment reflects the tax impact of acquisition accounting fair value adjustments. | |||||
[12] | Reflects the fair value adjustment based on the Company's evaluation of acquired other assets. | |||||
[13] | Adjustment reflects the fair value adjustment based on the Company's evaluation of acquired other assets. | |||||
[14] | Represents the fair value adjustment due to interest rate factors. | |||||
[15] | Adjustment represents the fair value adjustment due to interest rate factors. | |||||
[16] | Reflects the fair value adjustment based on the Company's evaluation of acquired other liabilities. | |||||
[17] | Adjustment reflects the fair value adjustment based on the Company's evaluation of acquired other liabilities. |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available For Sale | ||
Amortized Cost | $ 807,672 | $ 736,975 |
Unrealized Gains | 5,803 | 10,437 |
Unrealized Losses | (8,510) | (4,173) |
Securities available for sale | 804,968 | 743,239 |
Municipal securities [Member] | ||
Available For Sale | ||
Amortized Cost | 200,526 | 240,904 |
Unrealized Gains | 2,508 | 6,790 |
Unrealized Losses | (1,457) | (344) |
Securities available for sale | 201,577 | 247,350 |
US government agencies [Member] | ||
Available For Sale | ||
Amortized Cost | 13,000 | 11,983 |
Unrealized Gains | 34 | |
Unrealized Losses | (55) | (9) |
Securities available for sale | 12,945 | 12,008 |
Collateralized loan obligations [Member] | ||
Available For Sale | ||
Amortized Cost | 172,154 | 128,080 |
Unrealized Gains | 404 | 581 |
Unrealized Losses | (50) | (18) |
Securities available for sale | 172,508 | 128,643 |
Corporate securities [Member] | ||
Available For Sale | ||
Amortized Cost | 6,902 | 6,891 |
Unrealized Gains | 90 | 115 |
Unrealized Losses | (4) | |
Securities available for sale | 6,989 | 7,006 |
Mortgage-backed securities Agency [Member] | ||
Available For Sale | ||
Amortized Cost | 236,826 | 243,075 |
Unrealized Gains | 504 | 1,234 |
Unrealized Losses | (3,574) | (714) |
Securities available for sale | 233,757 | 243,595 |
Mortgage-backed securities Non-agency [Member] | ||
Available For Sale | ||
Amortized Cost | 167,028 | 94,834 |
Unrealized Gains | 540 | 551 |
Unrealized Losses | (1,684) | (260) |
Securities available for sale | 165,884 | 95,125 |
Total mortgage-backed securities [Member] | ||
Available For Sale | ||
Amortized Cost | 403,854 | 337,909 |
Unrealized Gains | 1,044 | 1,785 |
Unrealized Losses | (5,258) | (974) |
Securities available for sale | 399,641 | 338,720 |
Asset-backed securities [Member] | ||
Available For Sale | ||
Amortized Cost | 11,236 | 11,208 |
Unrealized Gains | 1,757 | 1,132 |
Unrealized Losses | (1,686) | (2,828) |
Securities available for sale | $ 11,308 | $ 9,512 |
SECURITIES (Details 2)
SECURITIES (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Investment securities, Amortized Cost | ||
Less than one year | $ 309 | |
One to five years | 9,161 | |
Six to ten years | 111,914 | |
After ten years | 686,288 | |
Total | 807,672 | $ 736,975 |
Investment securities, Fair Value | ||
Less than one year | 309 | |
One to five years | 9,149 | |
Six to ten years | 111,531 | |
After ten years | 683,979 | |
Securities available for sale | $ 804,968 | $ 743,239 |
SECURITIES (Details 3)
SECURITIES (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Gross realized gains and losses, Available-for-sale | ||||
Proceeds | $ 34,122 | $ 43,324 | $ 85,300 | $ 81,021 |
Realized gains | 55 | 647 | 69 | 1,020 |
Realized losses | (801) | (26) | (1,512) | (214) |
Total investment securities gains, net | $ (746) | $ 621 | $ (1,443) | $ 806 |
SECURITIES (Details 4)
SECURITIES (Details 4) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | $ 422,885 | $ 177,905 |
Less than 12 Months, Fair Value | 416,881 | 177,000 |
Less than 12 Months, Unrealized Losses | (6,004) | (905) |
Greater than 12 Months, Amortized Cost | 42,556 | 39,495 |
Greater than 12 Months, Fair Value | 40,051 | 36,227 |
Greater than 12 Months, Unrealized Losses | (2,505) | (3,268) |
Total, Amortized Cost | 465,441 | 217,400 |
Total, Fair Value | 456,932 | 213,227 |
Total, Unrealized Losses | (8,510) | (4,173) |
Municipal securities [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 80,659 | 23,849 |
Less than 12 Months, Fair Value | 79,430 | 23,631 |
Less than 12 Months, Unrealized Losses | (1,229) | (218) |
Greater than 12 Months, Amortized Cost | 3,574 | 3,606 |
Greater than 12 Months, Fair Value | 3,346 | 3,480 |
Greater than 12 Months, Unrealized Losses | (228) | (126) |
Total, Amortized Cost | 84,233 | 27,455 |
Total, Fair Value | 82,776 | 27,111 |
Total, Unrealized Losses | (1,457) | (344) |
US government agencies [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 13,000 | 1,681 |
Less than 12 Months, Fair Value | 12,945 | 1,672 |
Less than 12 Months, Unrealized Losses | (55) | (9) |
Greater than 12 Months, Amortized Cost | ||
Greater than 12 Months, Fair Value | ||
Greater than 12 Months, Unrealized Losses | ||
Total, Amortized Cost | 13,000 | 1,681 |
Total, Fair Value | 12,945 | 1,672 |
Total, Unrealized Losses | (55) | (9) |
Collateralized loan obligations [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 57,909 | 23,000 |
Less than 12 Months, Fair Value | 57,859 | 22,982 |
Less than 12 Months, Unrealized Losses | (50) | (18) |
Greater than 12 Months, Amortized Cost | ||
Greater than 12 Months, Fair Value | ||
Greater than 12 Months, Unrealized Losses | ||
Total, Amortized Cost | 57,909 | 23,000 |
Total, Fair Value | 57,859 | 22,982 |
Total, Unrealized Losses | (50) | (18) |
Mortgage-backed securities Agency [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 170,067 | 107,501 |
Less than 12 Months, Fair Value | 167,006 | 107,011 |
Less than 12 Months, Unrealized Losses | (3,061) | (490) |
Greater than 12 Months, Amortized Cost | 19,824 | 17,484 |
Greater than 12 Months, Fair Value | 19,311 | 17,260 |
Greater than 12 Months, Unrealized Losses | (513) | (224) |
Total, Amortized Cost | 189,891 | 124,985 |
Total, Fair Value | 186,317 | 124,271 |
Total, Unrealized Losses | (3,574) | (714) |
Mortgage-backed securities Non-agency [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 100,771 | 21,874 |
Less than 12 Months, Fair Value | 99,166 | 21,704 |
Less than 12 Months, Unrealized Losses | (1,605) | (170) |
Greater than 12 Months, Amortized Cost | 10,691 | 9,889 |
Greater than 12 Months, Fair Value | 10,613 | 9,799 |
Greater than 12 Months, Unrealized Losses | (78) | (90) |
Total, Amortized Cost | 111,462 | 31,763 |
Total, Fair Value | 109,779 | 31,503 |
Total, Unrealized Losses | (1,684) | (260) |
Total mortgage-backed securities [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 270,838 | 129,375 |
Less than 12 Months, Fair Value | 266,172 | 128,715 |
Less than 12 Months, Unrealized Losses | (4,666) | (660) |
Greater than 12 Months, Amortized Cost | 30,515 | 27,373 |
Greater than 12 Months, Fair Value | 29,924 | 27,059 |
Greater than 12 Months, Unrealized Losses | (591) | (314) |
Total, Amortized Cost | 301,353 | 156,748 |
Total, Fair Value | 296,096 | 155,774 |
Total, Unrealized Losses | (5,258) | (974) |
Asset-backed securities [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | ||
Less than 12 Months, Fair Value | ||
Less than 12 Months, Unrealized Losses | ||
Greater than 12 Months, Amortized Cost | 8,467 | 8,516 |
Greater than 12 Months, Fair Value | 6,781 | 5,688 |
Greater than 12 Months, Unrealized Losses | (1,686) | (2,828) |
Total, Amortized Cost | 8,467 | 8,516 |
Total, Fair Value | 6,781 | 5,688 |
Total, Unrealized Losses | (1,686) | $ (2,828) |
Corporate securities [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 479 | |
Less than 12 Months, Fair Value | 475 | |
Less than 12 Months, Unrealized Losses | (4) | |
Greater than 12 Months, Amortized Cost | ||
Greater than 12 Months, Fair Value | ||
Greater than 12 Months, Unrealized Losses | ||
Total, Amortized Cost | 479 | |
Total, Fair Value | 475 | |
Total, Unrealized Losses | $ (4) |
SECURITIES (Details Narrative)
SECURITIES (Details Narrative) $ in Thousands | Jun. 30, 2018USD ($)Item | Dec. 31, 2017Item |
Disclosure Securities Details Abstract | ||
Available for Sale Securities pledged for FHLB advances | $ 89,400 | |
Available for Sale Securities pledged to secure public agency funds | 178,400 | |
Available for Sale Securities pledged for FRB advances | $ 192,900 | |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | Item | 221 | 135 |
DERIVATIVES (Details)
DERIVATIVES (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Asset derivatives, Fair value | $ 6,001 | $ 2,803 |
Notional Value, Assets | 266,884 | 216,985 |
Liability derivatives, Fair value | 129 | 156 |
Notional Value, Liability | 90,000 | 80,000 |
Interest rate swaps [Member] | ||
Asset derivatives, Fair value | 2,007 | 964 |
Notional Value, Assets | 45,000 | 50,000 |
Liability derivatives, Fair value | 95 | |
Notional Value, Liability | 5,000 | |
Interest rate swaps [Member] | Cash Flow Hedging [Member] | ||
Asset derivatives, Fair value | 2,007 | 644 |
Notional Value, Assets | 70,000 | 45,000 |
Mortgage loan interest rate lock commitments [Member] | ||
Asset derivatives, Fair value | 1,476 | 890 |
Notional Value, Assets | 126,031 | 98,584 |
Mortgage loan forward sales commitments [Member] | ||
Asset derivatives, Fair value | 511 | 305 |
Notional Value, Assets | 25,853 | 23,401 |
Mortgage-backed securities forward sales commitments [Member] | ||
Liability derivatives, Fair value | 129 | 61 |
Notional Value, Liability | $ 90,000 | $ 75,000 |
LOANS RECEIVABLE, NET (Details)
LOANS RECEIVABLE, NET (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Total gross loans receivable | $ 2,427,221 | $ 2,319,528 | ||||
Percentage of Total Loan | 100.00% | 100.00% | ||||
Loans, allowance for loan losses | $ 12,987 | $ 12,708 | $ 11,478 | $ 10,750 | $ 10,715 | $ 10,688 |
Loans receivable, net | 2,414,234 | 2,308,050 | ||||
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 2,362,703 | $ 2,241,113 | ||||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 100.00% | 100.00% | ||||
Allowance for loan losses | $ 12,987 | $ 11,478 | ||||
Purchased Non-Credit Impaired Loans and Nonacquired Loans, net | 2,349,716 | 2,229,635 | ||||
Purchased Credit Impaired Loans | $ 64,518 | 71,030 | $ 78,415 | |||
Percentage of Purchased Credit Impaired Loans | 100.00% | 100.00% | ||||
One-to-four family [Member] | ||||||
Total gross loans receivable | $ 699,435 | $ 665,774 | ||||
Percentage of Total Loan | 28.82% | 28.70% | ||||
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 689,934 | $ 654,597 | ||||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 29.20% | 29.21% | ||||
Purchased Credit Impaired Loans | $ 9,501 | $ 11,177 | ||||
Percentage of Purchased Credit Impaired Loans | 14.73% | 14.25% | ||||
Home equity [Member] | ||||||
Total gross loans receivable | $ 87,946 | $ 90,141 | ||||
Percentage of Total Loan | 3.62% | 3.89% | ||||
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 87,855 | $ 89,961 | ||||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 3.72% | 4.01% | ||||
Purchased Credit Impaired Loans | $ 91 | $ 180 | ||||
Percentage of Purchased Credit Impaired Loans | 0.14% | 0.23% | ||||
Commercial real estate [Member] | ||||||
Total gross loans receivable | $ 940,558 | $ 933,820 | ||||
Percentage of Total Loan | 38.75% | 40.26% | ||||
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 901,372 | $ 891,469 | ||||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 38.15% | 39.77% | ||||
Purchased Credit Impaired Loans | $ 39,186 | $ 42,351 | ||||
Percentage of Purchased Credit Impaired Loans | 60.14% | 54.01% | ||||
Construction and development [Member] | ||||||
Total gross loans receivable | $ 327,778 | $ 294,793 | ||||
Percentage of Total Loan | 13.50% | 12.71% | ||||
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 320,902 | $ 287,437 | ||||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 13.58% | 12.83% | ||||
Purchased Credit Impaired Loans | $ 6,876 | $ 7,356 | ||||
Percentage of Purchased Credit Impaired Loans | 10.66% | 9.38% | ||||
Consumer loans [Member] | ||||||
Total gross loans receivable | $ 16,041 | $ 19,990 | ||||
Percentage of Total Loan | 0.66% | 0.86% | ||||
Loans, allowance for loan losses | $ 117 | 75 | $ 79 | 101 | 110 | 80 |
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 15,963 | $ 19,895 | ||||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 0.68% | 0.89% | ||||
Purchased Credit Impaired Loans | $ 78 | $ 95 | ||||
Percentage of Purchased Credit Impaired Loans | 0.11% | 0.12% | ||||
Commercial business loans [Member] | ||||||
Total gross loans receivable | $ 355,463 | $ 315,010 | ||||
Percentage of Total Loan | 14.65% | 13.58% | ||||
Loans, allowance for loan losses | $ 2,543 | $ 2,873 | $ 2,840 | $ 2,901 | $ 2,498 | $ 2,805 |
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 346,677 | $ 297,754 | ||||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 14.67% | 13.29% | ||||
Purchased Credit Impaired Loans | $ 8,786 | $ 17,256 | ||||
Percentage of Purchased Credit Impaired Loans | 13.62% | 22.01% |
LOANS RECEIVABLE, NET (Details
LOANS RECEIVABLE, NET (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Loans Receivable Net | ||||
Balance at beginning of period | $ 71,030 | $ 78,415 | ||
Net reductions for payments, foreclosures, and accretion | 6,512 | 13,897 | ||
Balance at end of period | 64,518 | 64,518 | ||
Accretable yield, beginning of period | 15,745 | 12,536 | ||
Additions | ||||
Accretion | (1,224) | (4,817) | $ (1,451) | |
Reclassification from nonaccretable balance, net | 207 | 3,403 | ||
Other changes, net | (58) | 1,287 | ||
Accretable yield, end of period | 14,670 | 14,670 | ||
Variable rate loans | $ 914,923 | $ 914,923 | $ 807,748 | |
Variable rate loans (as a percentage) | 37.69% | 37.69% | 34.82% | |
Fixed rate loans | $ 1,512,298 | $ 1,512,298 | $ 1,511,780 | |
Fixed rate loans (as a percentage) | 62.31% | 62.31% | 65.18% | |
Total loans outstanding | $ 2,427,221 | $ 2,427,221 | $ 2,319,528 | |
Total loans outstanding (as a percentage) | 100.00% | 100.00% | 100.00% |
LOANS RECEIVABLE, NET (Detail40
LOANS RECEIVABLE, NET (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | $ 12,708 | $ 10,715 | $ 11,478 | $ 10,688 |
Provision for Loan Losses | 559 | 559 | ||
Charge-Offs | (355) | (20) | (488) | (45) |
Recoveries | 74 | 55 | 1,437 | 107 |
Ending Balance | 12,987 | 10,750 | 12,987 | 10,750 |
Consumer loans [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 75 | 110 | 79 | 80 |
Provision for Loan Losses | 153 | (16) | 118 | 20 |
Charge-Offs | (129) | (1) | (138) | (10) |
Recoveries | 18 | 8 | 58 | 11 |
Ending Balance | 117 | 101 | 117 | 101 |
Commercial business loans [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 2,873 | 2,498 | 2,840 | 2,805 |
Provision for Loan Losses | (309) | 359 | (456) | 30 |
Charge-Offs | (27) | (116) | ||
Recoveries | 6 | 44 | 275 | 66 |
Ending Balance | 2,543 | 2,901 | 2,543 | 2,901 |
Unallocated [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 348 | 809 | 485 | 494 |
Provision for Loan Losses | 246 | (283) | 109 | 32 |
Charge-Offs | ||||
Recoveries | ||||
Ending Balance | 594 | 526 | 594 | 526 |
Mortgage Receivables [Member] | One-to-four family [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 3,010 | 2,506 | 2,719 | 2,636 |
Provision for Loan Losses | 240 | 237 | 526 | 122 |
Charge-Offs | (147) | (19) | (147) | (35) |
Recoveries | 7 | 1 | 12 | 2 |
Ending Balance | 3,110 | 2,725 | 3,110 | 2,725 |
Mortgage Receivables [Member] | Home equity [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 226 | 236 | 168 | 197 |
Provision for Loan Losses | (24) | (18) | 26 | 21 |
Charge-Offs | ||||
Recoveries | 8 | |||
Ending Balance | 202 | 218 | 202 | 218 |
Mortgage Receivables [Member] | Commercial real estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 4,144 | 3,613 | 3,986 | 3,344 |
Provision for Loan Losses | 205 | (283) | 392 | (39) |
Charge-Offs | (52) | (86) | ||
Recoveries | 42 | 1 | 47 | 26 |
Ending Balance | 4,339 | 3,331 | 4,339 | 3,331 |
Mortgage Receivables [Member] | Construction and development [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 2,032 | 943 | 1,201 | 1,132 |
Provision for Loan Losses | 49 | 4 | (155) | (186) |
Charge-Offs | (1) | |||
Recoveries | 1 | 1 | 1,037 | 2 |
Ending Balance | $ 2,082 | $ 948 | $ 2,082 | $ 948 |
LOANS RECEIVABLE, NET (Detail41
LOANS RECEIVABLE, NET (Details 4) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance for loan losses ending balances: | |||
Loans Individually Evaluated for Impairment | $ 920 | $ 109 | |
Loans Collectively Evaluated for Impairment | 12,067 | 11,369 | |
Ending Balance | 12,987 | 11,478 | |
Loans receivable ending balances: | |||
Individually Evaluated for Impairment | 11,073 | 8,983 | |
Collectively Evaluated for Impairment | 2,351,630 | 2,232,130 | |
Purchased Credit Impaired Loans | 64,518 | $ 71,030 | 78,415 |
Total | 2,427,221 | 2,319,528 | |
One-to-four family [Member] | |||
Allowance for loan losses ending balances: | |||
Loans Individually Evaluated for Impairment | 204 | 64 | |
Loans Collectively Evaluated for Impairment | 2,906 | 2,655 | |
Ending Balance | 3,110 | 2,719 | |
Loans receivable ending balances: | |||
Individually Evaluated for Impairment | 3,698 | 3,435 | |
Collectively Evaluated for Impairment | 686,236 | 651,162 | |
Purchased Credit Impaired Loans | 9,501 | 11,177 | |
Total | 699,435 | 665,774 | |
Home equity [Member] | |||
Allowance for loan losses ending balances: | |||
Loans Individually Evaluated for Impairment | 29 | 29 | |
Loans Collectively Evaluated for Impairment | 173 | 139 | |
Ending Balance | 202 | 168 | |
Loans receivable ending balances: | |||
Individually Evaluated for Impairment | 126 | 108 | |
Collectively Evaluated for Impairment | 87,729 | 89,853 | |
Purchased Credit Impaired Loans | 91 | 180 | |
Total | 87,946 | 90,141 | |
Commercial real estate [Member] | |||
Allowance for loan losses ending balances: | |||
Loans Individually Evaluated for Impairment | 142 | ||
Loans Collectively Evaluated for Impairment | 4,197 | 3,986 | |
Ending Balance | 4,339 | 3,986 | |
Loans receivable ending balances: | |||
Individually Evaluated for Impairment | 4,636 | 4,811 | |
Collectively Evaluated for Impairment | 896,736 | 886,658 | |
Purchased Credit Impaired Loans | 39,186 | 42,351 | |
Total | 940,558 | 933,820 | |
Construction and development [Member] | |||
Allowance for loan losses ending balances: | |||
Loans Individually Evaluated for Impairment | 534 | ||
Loans Collectively Evaluated for Impairment | 1,548 | 1,201 | |
Ending Balance | 2,082 | 1,201 | |
Loans receivable ending balances: | |||
Individually Evaluated for Impairment | 1,840 | 318 | |
Collectively Evaluated for Impairment | 319,062 | 287,119 | |
Purchased Credit Impaired Loans | 6,876 | 7,356 | |
Total | 327,778 | 294,793 | |
Consumer loans [Member] | |||
Allowance for loan losses ending balances: | |||
Loans Individually Evaluated for Impairment | |||
Loans Collectively Evaluated for Impairment | 117 | 79 | |
Ending Balance | 117 | 79 | |
Loans receivable ending balances: | |||
Individually Evaluated for Impairment | 19 | 26 | |
Collectively Evaluated for Impairment | 15,944 | 19,869 | |
Purchased Credit Impaired Loans | 78 | 95 | |
Total | 16,041 | 19,990 | |
Commercial business loans [Member] | |||
Allowance for loan losses ending balances: | |||
Loans Individually Evaluated for Impairment | 11 | 16 | |
Loans Collectively Evaluated for Impairment | 2,532 | 2,824 | |
Ending Balance | 2,543 | 2,840 | |
Loans receivable ending balances: | |||
Individually Evaluated for Impairment | 754 | 285 | |
Collectively Evaluated for Impairment | 345,923 | 297,469 | |
Purchased Credit Impaired Loans | 8,786 | 17,256 | |
Total | 355,463 | 315,010 | |
Unallocated [Member] | |||
Allowance for loan losses ending balances: | |||
Loans Individually Evaluated for Impairment | |||
Loans Collectively Evaluated for Impairment | 594 | 485 | |
Ending Balance | 594 | 485 | |
Loans receivable ending balances: | |||
Individually Evaluated for Impairment | |||
Collectively Evaluated for Impairment | |||
Purchased Credit Impaired Loans | |||
Total |
LOANS RECEIVABLE, NET (Detail42
LOANS RECEIVABLE, NET (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 6,027 | $ 6,027 | $ 6,552 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 5,046 | 5,046 | 2,431 | ||
Impaired Financing Receivable, Recorded Investment | 11,073 | 11,073 | 8,983 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 6,152 | 6,152 | 6,674 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 5,166 | 5,166 | 2,431 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 11,318 | 11,318 | 9,105 | ||
Impaired Financing Receivable, Related Allowance | 920 | 920 | 109 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 5,657 | $ 7,599 | 5,518 | $ 7,395 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 5,014 | 2,480 | 4,464 | 2,261 | |
Impaired Financing Receivable, Average Recorded Investment | 10,671 | 10,079 | 9,982 | 9,656 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | (31) | (51) | 75 | 140 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 22 | (64) | 56 | 13 | |
Impaired Financing Receivable, Interest Income, Accrual Method | (9) | (115) | 131 | 153 | |
One-to-four family [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,250 | 2,250 | 2,725 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,448 | 1,448 | 710 | ||
Impaired Financing Receivable, Recorded Investment | 3,698 | 3,698 | 3,435 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,375 | 2,375 | 2,846 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,486 | 1,486 | 710 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 3,861 | 3,861 | 3,556 | ||
Impaired Financing Receivable, Related Allowance | 204 | 204 | 64 | ||
Home equity [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 68 | 68 | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 58 | 58 | 108 | ||
Impaired Financing Receivable, Recorded Investment | 126 | 126 | 108 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 68 | 68 | |||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 58 | 58 | 108 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 126 | 126 | 108 | ||
Impaired Financing Receivable, Related Allowance | 29 | 29 | 29 | ||
Commercial real estate [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,824 | 2,824 | 3,370 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,812 | 1,812 | 1,441 | ||
Impaired Financing Receivable, Recorded Investment | 4,636 | 4,636 | 4,811 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,824 | 2,824 | 3,370 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,894 | 1,894 | 1,441 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 4,718 | 4,718 | 4,811 | ||
Impaired Financing Receivable, Related Allowance | 142 | 142 | |||
Construction and development [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 267 | 267 | 318 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,573 | 1,573 | |||
Impaired Financing Receivable, Recorded Investment | 1,840 | 1,840 | 318 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 267 | 267 | 318 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,573 | 1,573 | |||
Impaired Financing Receivable, Unpaid Principal Balance | 1,840 | 1,840 | 318 | ||
Impaired Financing Receivable, Related Allowance | 534 | 534 | |||
Consumer loans [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 19 | 19 | 26 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | |||||
Impaired Financing Receivable, Recorded Investment | 19 | 19 | 26 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 19 | 19 | 26 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | |||||
Impaired Financing Receivable, Unpaid Principal Balance | 19 | 19 | 26 | ||
Impaired Financing Receivable, Related Allowance | |||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 20 | 19 | 21 | 19 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | |||||
Impaired Financing Receivable, Average Recorded Investment | 20 | 19 | 21 | 19 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | |||||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | |||||
Impaired Financing Receivable, Interest Income, Accrual Method | |||||
Commercial business loans [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 599 | 599 | 113 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 155 | 155 | 172 | ||
Impaired Financing Receivable, Recorded Investment | 754 | 754 | 285 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 599 | 599 | 114 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 155 | 155 | 172 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 754 | 754 | 286 | ||
Impaired Financing Receivable, Related Allowance | 11 | 11 | $ 16 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 183 | 32 | 103 | 35 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 159 | 205 | 164 | 211 | |
Impaired Financing Receivable, Average Recorded Investment | 342 | 237 | 267 | 246 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 9 | (16) | 14 | 1 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 2 | 5 | 6 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | 11 | (16) | 19 | 7 | |
Mortgage Receivables [Member] | One-to-four family [Member] | |||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,199 | 3,027 | 2,107 | 2,953 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,481 | 992 | 1,489 | 803 | |
Impaired Financing Receivable, Average Recorded Investment | 3,680 | 4,019 | 3,596 | 3,756 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | (14) | (15) | 2 | 21 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 5 | 5 | 16 | 8 | |
Impaired Financing Receivable, Interest Income, Accrual Method | (9) | (10) | 18 | 29 | |
Mortgage Receivables [Member] | Home equity [Member] | |||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 17 | 347 | 8 | 258 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 88 | 274 | 96 | 233 | |
Impaired Financing Receivable, Average Recorded Investment | 105 | 621 | 104 | 491 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 9 | 1 | 12 | ||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | (3) | (2) | (1) | ||
Impaired Financing Receivable, Interest Income, Accrual Method | (3) | 7 | 1 | 11 | |
Mortgage Receivables [Member] | Commercial real estate [Member] | |||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,971 | 4,016 | 3,012 | 4,043 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,839 | 1,009 | 1,793 | 1,014 | |
Impaired Financing Receivable, Average Recorded Investment | 4,810 | 5,025 | 4,805 | 5,057 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | (31) | (37) | 49 | 98 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 18 | (67) | 39 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | (13) | (104) | 88 | 98 | |
Mortgage Receivables [Member] | Construction and development [Member] | |||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 267 | 158 | 267 | 87 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,447 | 922 | |||
Impaired Financing Receivable, Average Recorded Investment | 1,714 | 158 | 1,189 | 87 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 5 | 8 | 9 | 8 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | (4) | ||||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 5 | $ 8 | $ 5 | $ 8 |
LOANS RECEIVABLE, NET (Detail43
LOANS RECEIVABLE, NET (Details 6) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | $ 11,892 | $ 21,466 |
Current | 2,415,329 | 2,298,062 |
Total loans receivable | 2,427,221 | 2,319,528 |
30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 3,668 | 13,649 |
60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 2,639 | 1,869 |
90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 5,585 | 5,948 |
One-to-four family [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 5,210 | 11,744 |
Current | 694,225 | 654,030 |
Total loans receivable | 699,435 | 665,774 |
One-to-four family [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1,343 | 8,139 |
One-to-four family [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 870 | 1,025 |
One-to-four family [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 2,997 | 2,580 |
Home equity [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 946 | 1,576 |
Current | 87,000 | 88,565 |
Total loans receivable | 87,946 | 90,141 |
Home equity [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 567 | 1,350 |
Home equity [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 164 | 109 |
Home equity [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 215 | 117 |
Commercial real estate [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 2,940 | 2,468 |
Current | 937,618 | 931,352 |
Total loans receivable | 940,558 | 933,820 |
Commercial real estate [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 918 | 1,358 |
Commercial real estate [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1,411 | 421 |
Commercial real estate [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 611 | 689 |
Construction and development [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1,315 | 4,810 |
Current | 326,463 | 289,983 |
Total loans receivable | 327,778 | 294,793 |
Construction and development [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 274 | 2,328 |
Construction and development [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 52 | |
Construction and development [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 989 | 2,482 |
Consumer loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 285 | 258 |
Current | 15,756 | 19,732 |
Total loans receivable | 16,041 | 19,990 |
Consumer loans [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 239 | 108 |
Consumer loans [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 23 | 129 |
Consumer loans [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 23 | 21 |
Commercial business loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1,196 | 610 |
Current | 354,267 | 314,400 |
Total loans receivable | 355,463 | 315,010 |
Commercial business loans [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 327 | 366 |
Commercial business loans [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 119 | 185 |
Commercial business loans [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 750 | 59 |
Purchased Credit Impaired Loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1,587 | 2,460 |
Current | 62,931 | 75,955 |
Total loans receivable | 64,518 | 78,415 |
Purchased Credit Impaired Loans [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 182 | 555 |
Purchased Credit Impaired Loans [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 83 | 25 |
Purchased Credit Impaired Loans [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1,322 | 1,880 |
Purchased Credit Impaired Loans [Member] | One-to-four family [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 566 | 976 |
Current | 8,935 | 10,201 |
Total loans receivable | 9,501 | 11,177 |
Purchased Credit Impaired Loans [Member] | One-to-four family [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 79 | 265 |
Purchased Credit Impaired Loans [Member] | One-to-four family [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 72 | 25 |
Purchased Credit Impaired Loans [Member] | One-to-four family [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 415 | 686 |
Purchased Credit Impaired Loans [Member] | Home equity [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 16 | 40 |
Current | 75 | 140 |
Total loans receivable | 91 | 180 |
Purchased Credit Impaired Loans [Member] | Home equity [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 11 | 31 |
Purchased Credit Impaired Loans [Member] | Home equity [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | ||
Purchased Credit Impaired Loans [Member] | Home equity [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 5 | 9 |
Purchased Credit Impaired Loans [Member] | Commercial real estate [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 92 | 246 |
Current | 39,094 | 42,105 |
Total loans receivable | 39,186 | 42,351 |
Purchased Credit Impaired Loans [Member] | Commercial real estate [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 93 | 246 |
Purchased Credit Impaired Loans [Member] | Commercial real estate [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | ||
Purchased Credit Impaired Loans [Member] | Commercial real estate [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | ||
Purchased Credit Impaired Loans [Member] | Construction and development [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 913 | 1,198 |
Current | 5,963 | 6,158 |
Total loans receivable | 6,876 | 7,356 |
Purchased Credit Impaired Loans [Member] | Construction and development [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 13 | |
Purchased Credit Impaired Loans [Member] | Construction and development [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 11 | |
Purchased Credit Impaired Loans [Member] | Construction and development [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1,067 | 1,185 |
Purchased Credit Impaired Loans [Member] | Consumer loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | ||
Current | 78 | 95 |
Total loans receivable | 78 | 95 |
Purchased Credit Impaired Loans [Member] | Consumer loans [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | ||
Purchased Credit Impaired Loans [Member] | Consumer loans [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | ||
Purchased Credit Impaired Loans [Member] | Consumer loans [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | ||
Purchased Credit Impaired Loans [Member] | Commercial business loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | ||
Current | 8,786 | 17,256 |
Total loans receivable | 8,786 | 17,256 |
Purchased Credit Impaired Loans [Member] | Commercial business loans [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | ||
Purchased Credit Impaired Loans [Member] | Commercial business loans [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1 | |
Purchased Credit Impaired Loans [Member] | Commercial business loans [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | ||
Purchased Non Credit Impaired Loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 10,305 | 19,006 |
Current | 2,352,398 | 2,222,107 |
Total loans receivable | 2,362,703 | 2,241,113 |
Purchased Non Credit Impaired Loans [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 3,486 | 13,094 |
Purchased Non Credit Impaired Loans [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 2,556 | 1,844 |
Purchased Non Credit Impaired Loans [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 4,263 | 4,068 |
Purchased Non Credit Impaired Loans [Member] | One-to-four family [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 4,644 | 10,768 |
Current | 685,290 | 643,829 |
Total loans receivable | 689,934 | 654,597 |
Purchased Non Credit Impaired Loans [Member] | One-to-four family [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1,264 | 7,874 |
Purchased Non Credit Impaired Loans [Member] | One-to-four family [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 798 | 1,000 |
Purchased Non Credit Impaired Loans [Member] | One-to-four family [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 2,582 | 1,894 |
Purchased Non Credit Impaired Loans [Member] | Home equity [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 930 | 1,536 |
Current | 86,925 | 88,425 |
Total loans receivable | 87,855 | 89,961 |
Purchased Non Credit Impaired Loans [Member] | Home equity [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 556 | 1,319 |
Purchased Non Credit Impaired Loans [Member] | Home equity [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 164 | 109 |
Purchased Non Credit Impaired Loans [Member] | Home equity [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 210 | 108 |
Purchased Non Credit Impaired Loans [Member] | Commercial real estate [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 2,848 | 2,222 |
Current | 898,524 | 889,247 |
Total loans receivable | 901,372 | 891,469 |
Purchased Non Credit Impaired Loans [Member] | Commercial real estate [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 826 | 1,112 |
Purchased Non Credit Impaired Loans [Member] | Commercial real estate [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1,411 | 421 |
Purchased Non Credit Impaired Loans [Member] | Commercial real estate [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 611 | 689 |
Purchased Non Credit Impaired Loans [Member] | Construction and development [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 402 | 3,612 |
Current | 320,500 | 283,825 |
Total loans receivable | 320,902 | 287,437 |
Purchased Non Credit Impaired Loans [Member] | Construction and development [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 274 | 2,315 |
Purchased Non Credit Impaired Loans [Member] | Construction and development [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 41 | |
Purchased Non Credit Impaired Loans [Member] | Construction and development [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 87 | 1,297 |
Purchased Non Credit Impaired Loans [Member] | Consumer loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 285 | 258 |
Current | 15,678 | 19,637 |
Total loans receivable | 15,963 | 19,895 |
Purchased Non Credit Impaired Loans [Member] | Consumer loans [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 239 | 108 |
Purchased Non Credit Impaired Loans [Member] | Consumer loans [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 23 | 129 |
Purchased Non Credit Impaired Loans [Member] | Consumer loans [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 23 | 21 |
Purchased Non Credit Impaired Loans [Member] | Commercial business loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1,196 | 610 |
Current | 345,481 | 297,144 |
Total loans receivable | 346,677 | 297,754 |
Purchased Non Credit Impaired Loans [Member] | Commercial business loans [Member] | 30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 327 | 366 |
Purchased Non Credit Impaired Loans [Member] | Commercial business loans [Member] | 60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 119 | 185 |
Purchased Non Credit Impaired Loans [Member] | Commercial business loans [Member] | 90 days or more past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | $ 750 | $ 59 |
LOANS RECEIVABLE, NET (Detail44
LOANS RECEIVABLE, NET (Details 7) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Nonaccrual | $ 9,764 | $ 5,841 |
Nonperforming Financing Receivable [Member] | ||
Nonaccrual | 8,423 | 3,961 |
One-to-four family [Member] | ||
Nonaccrual | 3,324 | 2,613 |
Home equity [Member] | ||
Nonaccrual | 236 | 117 |
Commercial real estate [Member] | ||
Nonaccrual | 2,710 | 1,540 |
Construction and development [Member] | ||
Nonaccrual | 2,563 | 1,236 |
Consumer loans [Member] | ||
Nonaccrual | 119 | 22 |
Consumer loans [Member] | Nonperforming Financing Receivable [Member] | ||
Nonaccrual | 100 | 22 |
Commercial business loans [Member] | ||
Nonaccrual | 812 | 313 |
Commercial business loans [Member] | Nonperforming Financing Receivable [Member] | ||
Nonaccrual | 812 | 313 |
Mortgage Receivables [Member] | One-to-four family [Member] | Nonperforming Financing Receivable [Member] | ||
Nonaccrual | 2,909 | 1,927 |
Mortgage Receivables [Member] | Home equity [Member] | Nonperforming Financing Receivable [Member] | ||
Nonaccrual | 231 | 108 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Nonperforming Financing Receivable [Member] | ||
Nonaccrual | 2,710 | 1,540 |
Mortgage Receivables [Member] | Construction and development [Member] | Nonperforming Financing Receivable [Member] | ||
Nonaccrual | $ 1,661 | $ 51 |
LOANS RECEIVABLE, NET (Detail45
LOANS RECEIVABLE, NET (Details 8) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Total loans receivable | $ 2,427,221 | $ 2,319,528 |
Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 2,362,703 | 2,241,113 |
Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 64,518 | 78,415 |
Pass [Member] | ||
Total loans receivable | 2,383,509 | 2,249,624 |
Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 2,344,601 | 2,231,931 |
Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 38,908 | 17,693 |
Special Mention [Member] | ||
Total loans receivable | 26,842 | 49,361 |
Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 9,102 | 4,672 |
Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 17,740 | 44,689 |
Substandard [Member] | ||
Total loans receivable | 16,870 | 20,543 |
Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 9,000 | 4,510 |
Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 7,870 | 16,033 |
One-to-four family [Member] | ||
Total loans receivable | 699,435 | 665,774 |
One-to-four family [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 689,934 | 654,597 |
One-to-four family [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 9,501 | 11,177 |
One-to-four family [Member] | Pass [Member] | ||
Total loans receivable | 694,822 | 658,031 |
One-to-four family [Member] | Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 687,208 | 652,508 |
One-to-four family [Member] | Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 7,614 | 5,523 |
One-to-four family [Member] | Special Mention [Member] | ||
Total loans receivable | 877 | 4,086 |
One-to-four family [Member] | Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | ||
One-to-four family [Member] | Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 877 | 4,086 |
One-to-four family [Member] | Substandard [Member] | ||
Total loans receivable | 3,736 | 3,657 |
One-to-four family [Member] | Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 2,726 | 2,089 |
One-to-four family [Member] | Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 1,010 | 1,568 |
Home equity [Member] | ||
Total loans receivable | 87,946 | 90,141 |
Home equity [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 87,855 | 89,961 |
Home equity [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 91 | 180 |
Home equity [Member] | Pass [Member] | ||
Total loans receivable | 87,754 | 89,919 |
Home equity [Member] | Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 87,692 | 89,853 |
Home equity [Member] | Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 62 | 66 |
Home equity [Member] | Special Mention [Member] | ||
Total loans receivable | 7 | 30 |
Home equity [Member] | Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | ||
Home equity [Member] | Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 7 | 30 |
Home equity [Member] | Substandard [Member] | ||
Total loans receivable | 185 | 192 |
Home equity [Member] | Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 163 | 108 |
Home equity [Member] | Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 22 | 84 |
Commercial real estate [Member] | ||
Total loans receivable | 940,558 | 933,820 |
Commercial real estate [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 901,372 | 891,469 |
Commercial real estate [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 39,186 | 42,351 |
Commercial real estate [Member] | Pass [Member] | ||
Total loans receivable | 915,661 | 898,328 |
Commercial real estate [Member] | Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 892,865 | 887,458 |
Commercial real estate [Member] | Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 22,796 | 10,870 |
Commercial real estate [Member] | Special Mention [Member] | ||
Total loans receivable | 17,605 | 28,670 |
Commercial real estate [Member] | Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 4,980 | 2,526 |
Commercial real estate [Member] | Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 12,625 | 26,144 |
Commercial real estate [Member] | Substandard [Member] | ||
Total loans receivable | 7,292 | 6,822 |
Commercial real estate [Member] | Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 3,527 | 1,485 |
Commercial real estate [Member] | Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 3,765 | 5,337 |
Construction and development [Member] | ||
Total loans receivable | 327,778 | 294,793 |
Construction and development [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 320,902 | 287,437 |
Construction and development [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 6,876 | 7,356 |
Construction and development [Member] | Pass [Member] | ||
Total loans receivable | 321,280 | 287,491 |
Construction and development [Member] | Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 319,206 | 286,857 |
Construction and development [Member] | Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 2,074 | 634 |
Construction and development [Member] | Special Mention [Member] | ||
Total loans receivable | 3,280 | 4,201 |
Construction and development [Member] | Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 74 | 79 |
Construction and development [Member] | Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 3,206 | 4,122 |
Construction and development [Member] | Substandard [Member] | ||
Total loans receivable | 3,218 | 3,101 |
Construction and development [Member] | Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 1,622 | 501 |
Construction and development [Member] | Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 1,596 | 2,600 |
Consumer loans [Member] | ||
Total loans receivable | 16,041 | 19,990 |
Consumer loans [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 15,963 | 19,895 |
Consumer loans [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 78 | 95 |
Consumer loans [Member] | Pass [Member] | ||
Total loans receivable | 15,838 | 19,817 |
Consumer loans [Member] | Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 15,760 | 19,785 |
Consumer loans [Member] | Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 78 | 32 |
Consumer loans [Member] | Special Mention [Member] | ||
Total loans receivable | 103 | 35 |
Consumer loans [Member] | Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 103 | |
Consumer loans [Member] | Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 35 | |
Consumer loans [Member] | Substandard [Member] | ||
Total loans receivable | 100 | 138 |
Consumer loans [Member] | Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 100 | 110 |
Consumer loans [Member] | Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 28 | |
Commercial business loans [Member] | ||
Total loans receivable | 355,463 | 315,010 |
Commercial business loans [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 346,677 | 297,754 |
Commercial business loans [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 8,786 | 17,256 |
Commercial business loans [Member] | Pass [Member] | ||
Total loans receivable | 348,154 | 296,038 |
Commercial business loans [Member] | Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 341,870 | 295,470 |
Commercial business loans [Member] | Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 6,284 | 568 |
Commercial business loans [Member] | Special Mention [Member] | ||
Total loans receivable | 4,970 | 12,339 |
Commercial business loans [Member] | Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 3,945 | 2,067 |
Commercial business loans [Member] | Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 1,025 | 10,272 |
Commercial business loans [Member] | Substandard [Member] | ||
Total loans receivable | 2,339 | 6,633 |
Commercial business loans [Member] | Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 862 | 217 |
Commercial business loans [Member] | Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | $ 1,477 | $ 6,416 |
LOANS RECEIVABLE, NET (Detail46
LOANS RECEIVABLE, NET (Details 9) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Total loans receivable | $ 2,427,221 | $ 2,319,528 |
Nonaccrual | 9,764 | 5,841 |
Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 64,518 | 78,415 |
Nonaccrual | 1,322 | 1,880 |
Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 2,362,703 | 2,241,113 |
Nonaccrual | 8,442 | 3,961 |
Performing Financing Receivable [Member] | ||
Total loans receivable | 2,417,457 | 2,313,687 |
Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 63,196 | 76,535 |
Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 2,354,261 | 2,237,152 |
Nonperforming Financing Receivable [Member] | ||
90 days or more past due | 1,341 | 1,880 |
Nonaccrual | 8,423 | 3,961 |
Nonperforming Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
90 days or more past due | 1,322 | 1,880 |
Nonaccrual | ||
Nonperforming Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
90 days or more past due | 19 | |
Nonaccrual | 8,423 | 3,961 |
One-to-four family [Member] | ||
Total loans receivable | 699,435 | 665,774 |
Nonaccrual | 3,324 | 2,613 |
One-to-four family [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 9,501 | 11,177 |
Nonaccrual | 415 | 686 |
One-to-four family [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 689,934 | 654,597 |
Nonaccrual | 2,909 | 1,927 |
Home equity [Member] | ||
Total loans receivable | 87,946 | 90,141 |
Nonaccrual | 236 | 117 |
Home equity [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 91 | 180 |
Nonaccrual | 5 | 9 |
Home equity [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 87,855 | 89,961 |
Nonaccrual | 231 | 108 |
Commercial real estate [Member] | ||
Total loans receivable | 940,558 | 933,820 |
Nonaccrual | 2,710 | 1,540 |
Commercial real estate [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 39,186 | 42,351 |
Nonaccrual | ||
Commercial real estate [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 901,372 | 891,469 |
Nonaccrual | 2,710 | 1,540 |
Construction and development [Member] | ||
Total loans receivable | 327,778 | 294,793 |
Nonaccrual | 2,563 | 1,236 |
Construction and development [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 6,876 | 7,356 |
Nonaccrual | 902 | 1,185 |
Construction and development [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 320,902 | 287,437 |
Nonaccrual | 1,661 | 22 |
Consumer loans [Member] | ||
Total loans receivable | 16,041 | 19,990 |
Nonaccrual | 119 | 22 |
Consumer loans [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 78 | 95 |
Nonaccrual | ||
Consumer loans [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 15,963 | 19,895 |
Nonaccrual | 119 | |
Consumer loans [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 15,922 | 19,968 |
Consumer loans [Member] | Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 78 | 95 |
Consumer loans [Member] | Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 15,844 | 19,873 |
Consumer loans [Member] | Nonperforming Financing Receivable [Member] | ||
90 days or more past due | 19 | |
Nonaccrual | 100 | 22 |
Consumer loans [Member] | Nonperforming Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
90 days or more past due | ||
Nonaccrual | ||
Consumer loans [Member] | Nonperforming Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
90 days or more past due | 19 | |
Nonaccrual | 100 | 22 |
Commercial business loans [Member] | ||
Total loans receivable | 355,463 | 315,010 |
Nonaccrual | 812 | 313 |
Commercial business loans [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 8,786 | 17,256 |
Commercial business loans [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 346,677 | 297,754 |
Nonaccrual | 812 | 313 |
Commercial business loans [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 354,651 | 314,697 |
Commercial business loans [Member] | Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 8,786 | 17,256 |
Commercial business loans [Member] | Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 345,865 | 297,441 |
Commercial business loans [Member] | Nonperforming Financing Receivable [Member] | ||
90 days or more past due | ||
Nonaccrual | 812 | 313 |
Commercial business loans [Member] | Nonperforming Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
90 days or more past due | ||
Nonaccrual | ||
Commercial business loans [Member] | Nonperforming Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
90 days or more past due | ||
Nonaccrual | 812 | 313 |
Mortgage Receivables [Member] | One-to-four family [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 696,111 | 663,161 |
Mortgage Receivables [Member] | One-to-four family [Member] | Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 9,086 | 10,491 |
Mortgage Receivables [Member] | One-to-four family [Member] | Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 687,025 | 652,670 |
Mortgage Receivables [Member] | One-to-four family [Member] | Nonperforming Financing Receivable [Member] | ||
90 days or more past due | 415 | 686 |
Nonaccrual | 2,909 | 1,927 |
Mortgage Receivables [Member] | One-to-four family [Member] | Nonperforming Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
90 days or more past due | 415 | 686 |
Nonaccrual | ||
Mortgage Receivables [Member] | One-to-four family [Member] | Nonperforming Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
90 days or more past due | ||
Nonaccrual | 2,909 | 1,927 |
Mortgage Receivables [Member] | Home equity [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 87,710 | 90,024 |
Mortgage Receivables [Member] | Home equity [Member] | Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 86 | 171 |
Mortgage Receivables [Member] | Home equity [Member] | Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 87,624 | 89,853 |
Mortgage Receivables [Member] | Home equity [Member] | Nonperforming Financing Receivable [Member] | ||
90 days or more past due | 5 | 9 |
Nonaccrual | 231 | 108 |
Mortgage Receivables [Member] | Home equity [Member] | Nonperforming Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
90 days or more past due | 5 | 9 |
Nonaccrual | ||
Mortgage Receivables [Member] | Home equity [Member] | Nonperforming Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
90 days or more past due | ||
Nonaccrual | 231 | 108 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 937,848 | 932,280 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 39,186 | 42,351 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 898,662 | 889,929 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Nonperforming Financing Receivable [Member] | ||
90 days or more past due | ||
Nonaccrual | 2,710 | 1,540 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Nonperforming Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
90 days or more past due | ||
Nonaccrual | ||
Mortgage Receivables [Member] | Commercial real estate [Member] | Nonperforming Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
90 days or more past due | ||
Nonaccrual | 2,710 | 1,540 |
Mortgage Receivables [Member] | Construction and development [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Nonaccrual | 51 | |
Mortgage Receivables [Member] | Construction and development [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 325,215 | 293,557 |
Mortgage Receivables [Member] | Construction and development [Member] | Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 5,974 | 6,171 |
Mortgage Receivables [Member] | Construction and development [Member] | Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 319,241 | 287,386 |
Mortgage Receivables [Member] | Construction and development [Member] | Nonperforming Financing Receivable [Member] | ||
90 days or more past due | 902 | 1,185 |
Nonaccrual | 1,661 | 51 |
Mortgage Receivables [Member] | Construction and development [Member] | Nonperforming Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
90 days or more past due | 902 | 1,185 |
Nonaccrual | ||
Mortgage Receivables [Member] | Construction and development [Member] | Nonperforming Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
90 days or more past due | ||
Nonaccrual | $ 1,661 | $ 51 |
LOANS RECEIVABLE, NET (Detail47
LOANS RECEIVABLE, NET (Details Narrative) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018USD ($)Item | Jun. 30, 2017USD ($)Item | Dec. 31, 2017USD ($) | |
Loans receivable | $ 813,700 | $ 962,300 | |
Loans designated as troubled debt restructurings | 6,300 | $ 6,700 | 6,500 |
Troubled debt restructurings, still accruing | $ 5,000 | $ 5,500 | $ 5,300 |
Mortgage Receivables [Member] | Commercial and Residential real estate [Member] | |||
Number of Contracts due to modification identified as a TDR | Item | 1 | ||
Pre-Modification Recorded Investment | $ 135 | ||
Post-Modification Recorded Investment | $ 135 | ||
Mortgage Receivables [Member] | Commercial real estate [Member] | |||
Number of Contracts due to modification identified as a TDR | Item | 2 | ||
Pre-Modification Recorded Investment | $ 608 | ||
Post-Modification Recorded Investment | $ 608 |
REAL ESTATE ACQUIRED THROUGH 48
REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Real Estate Acquired Through Foreclosure | ||
Balance at beginning of period | $ 3,106 | $ 1,179 |
Additions | 91 | 2,554 |
Sales | (1,345) | (627) |
Write downs | (126) | |
Balance at end of period | $ 1,726 | $ 3,106 |
REAL ESTATE ACQUIRED THROUGH 49
REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Real Estate Acquired Through Foreclosure | $ 1,726 | $ 3,106 | $ 1,179 |
One-to-four family [Member] | |||
Real Estate Acquired Through Foreclosure | 433 | 709 | |
Construction and development [Member] | |||
Real Estate Acquired Through Foreclosure | $ 1,293 | $ 2,397 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Disclosure Deposits Details Abstract | ||
Noninterest-bearing demand accounts | $ 577,568 | $ 525,615 |
Interest-bearing demand accounts | 584,719 | 551,308 |
Savings accounts | 198,571 | 213,142 |
Money market accounts | 458,558 | 452,734 |
Certificates of deposit: | ||
Less than $250,000 | 788,693 | 755,887 |
$250,000 or more | 100,689 | 106,243 |
Total certificates of deposit | 889,382 | 862,130 |
Total deposits | 2,708,798 | 2,604,929 |
Brokered certificates of deposit | 110,500 | 99,200 |
Institutional certificates of deposit | $ 57,100 | $ 39,100 |
ESTIMATED FAIR VALUE OF FINAN51
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Securities available for sale | $ 804,968 | $ 743,239 |
Loans held for sale | 39,473 | 35,292 |
Derivative Asset | 6,001 | 2,803 |
Brokered deposits | 110,500 | 99,200 |
Derivative Liability | 129 | 156 |
Municipal securities [Member] | ||
Securities available for sale | 201,577 | 247,350 |
US government agencies [Member] | ||
Securities available for sale | 12,945 | 12,008 |
Mortgage-backed securities Agency [Member] | ||
Securities available for sale | 233,757 | 243,595 |
Mortgage-backed securities Non-agency [Member] | ||
Securities available for sale | 165,884 | 95,125 |
Collateralized loan obligations [Member] | ||
Securities available for sale | 172,508 | 128,643 |
Asset-backed securities [Member] | ||
Securities available for sale | 11,308 | 9,512 |
Corporate securities [Member] | ||
Securities available for sale | 6,989 | 7,006 |
Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale | ||
Loans held for sale | ||
Derivative Asset | 4,014 | 1,608 |
Derivative Liability | 95 | |
Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale | 793,660 | 733,727 |
Loans held for sale | 39,473 | 35,292 |
Derivative Asset | 1,987 | 1,195 |
Derivative Liability | 129 | 61 |
Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale | 11,308 | 9,512 |
Loans held for sale | ||
Derivative Asset | ||
Derivative Liability | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Loans held for sale | ||
Brokered deposits | ||
Assets and liabilities measured at fair value | 4,014 | 1,703 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage loan interest rate lock commitments [Member] | ||
Derivative Asset | ||
Derivative Liability | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage loan forward sales commitments [Member] | ||
Derivative Asset | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities forward sales commitments [Member] | ||
Derivative Asset | ||
Derivative Liability | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest rate swaps [Member] | ||
Derivative Asset | 2,007 | 644 |
Assets and liabilities measured at fair value | 95 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest rate swaps [Member] | Not Designated as Hedging Instrument [Member] | ||
Securities available for sale | 2,007 | 964 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal securities [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US government agencies [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities Agency [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities Non-agency [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized loan obligations [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Loans held for sale | 39,473 | 35,292 |
Assets and liabilities measured at fair value | 835,249 | 770,275 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage loan interest rate lock commitments [Member] | ||
Derivative Asset | 1,476 | 890 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage loan forward sales commitments [Member] | ||
Derivative Asset | 511 | 305 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities forward sales commitments [Member] | ||
Derivative Liability | 129 | 61 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swaps [Member] | ||
Derivative Asset | ||
Derivative Liability | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal securities [Member] | ||
Securities available for sale | 201,577 | 247,350 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US government agencies [Member] | ||
Securities available for sale | 12,945 | 12,008 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities Agency [Member] | ||
Securities available for sale | 233,757 | 243,595 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities Non-agency [Member] | ||
Securities available for sale | 165,884 | 95,125 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized loan obligations [Member] | ||
Securities available for sale | 172,508 | 128,643 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate securities [Member] | ||
Securities available for sale | 6,989 | 7,006 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Loans held for sale | ||
Brokered deposits | ||
Assets and liabilities measured at fair value | 11,308 | 9,512 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage loan interest rate lock commitments [Member] | ||
Derivative Asset | ||
Derivative Liability | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage loan forward sales commitments [Member] | ||
Derivative Asset | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities forward sales commitments [Member] | ||
Derivative Asset | ||
Derivative Liability | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest rate swaps [Member] | ||
Derivative Asset | ||
Derivative Liability | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal securities [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US government agencies [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities Agency [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities Non-agency [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized loan obligations [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Asset-backed securities [Member] | ||
Securities available for sale | $ 11,308 | $ 9,512 |
ESTIMATED FAIR VALUE OF FINAN52
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2) - Nonrecurring basis [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 1 [Member] | One-to-four family [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 1 [Member] | Commercial real estate [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 1 [Member] | Construction and development [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 1 [Member] | Consumer loans [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 1 [Member] | Commercial business loans [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 1 [Member] | Mortgage Receivables [Member] | One-to-four family [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 1 [Member] | Mortgage Receivables [Member] | Home equity [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 1 [Member] | Mortgage Receivables [Member] | Commercial real estate [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 1 [Member] | Mortgage Receivables [Member] | Construction and development [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 2 [Member] | One-to-four family [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 2 [Member] | Commercial real estate [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 2 [Member] | Construction and development [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 2 [Member] | Consumer loans [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 2 [Member] | Commercial business loans [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 2 [Member] | Mortgage Receivables [Member] | One-to-four family [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 2 [Member] | Mortgage Receivables [Member] | Home equity [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 2 [Member] | Mortgage Receivables [Member] | Commercial real estate [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 2 [Member] | Mortgage Receivables [Member] | Construction and development [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value on a nonrecurring basis | 41,769 | 38,235 |
Fair Value, Inputs, Level 3 [Member] | One-to-four family [Member] | ||
Assets measured at fair value on a nonrecurring basis | 433 | 709 |
Fair Value, Inputs, Level 3 [Member] | Commercial real estate [Member] | ||
Assets measured at fair value on a nonrecurring basis | ||
Fair Value, Inputs, Level 3 [Member] | Construction and development [Member] | ||
Assets measured at fair value on a nonrecurring basis | 1,293 | 2,397 |
Fair Value, Inputs, Level 3 [Member] | Consumer loans [Member] | ||
Assets measured at fair value on a nonrecurring basis | 19 | 26 |
Fair Value, Inputs, Level 3 [Member] | Commercial business loans [Member] | ||
Assets measured at fair value on a nonrecurring basis | 743 | 269 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | ||
Assets measured at fair value on a nonrecurring basis | 29,890 | 26,255 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Receivables [Member] | One-to-four family [Member] | ||
Assets measured at fair value on a nonrecurring basis | 3,494 | 3,371 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Receivables [Member] | Home equity [Member] | ||
Assets measured at fair value on a nonrecurring basis | 97 | 79 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Receivables [Member] | Commercial real estate [Member] | ||
Assets measured at fair value on a nonrecurring basis | 4,494 | 4,811 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Receivables [Member] | Construction and development [Member] | ||
Assets measured at fair value on a nonrecurring basis | $ 1,306 | $ 318 |
ESTIMATED FAIR VALUE OF FINAN53
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 3) - Fair Value, Inputs, Level 3 [Member] | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Mortgage Servicing Rights [Member] | ||
Valuation Techniques | Discounted cash flows | Discounted cash flows |
Significant Unobservable Inputs | Comparable sales | Comparable sales |
Minimum [Member] | Mortgage Servicing Rights [Member] | ||
Significant Unobservable Input Range | 11.50% | 11.50% |
Assumptions Used to Estimate Fair Value, Prepayment Speed (As a percent) | 6.00% | 8.00% |
Maximum [Member] | Mortgage Servicing Rights [Member] | ||
Significant Unobservable Input Range | 13.00% | 13.00% |
Assumptions Used to Estimate Fair Value, Prepayment Speed (As a percent) | 8.50% | 10.00% |
Impaired Loans [Member] | ||
Valuation Techniques | Appraisal Value | Appraisal Value |
Significant Unobservable Inputs | Appraisals and or sales of comparable properties | Appraisals and or sales of comparable properties |
Impaired Loans [Member] | Minimum [Member] | ||
Significant Unobservable Input Range | 10.00% | 10.00% |
Impaired Loans [Member] | Maximum [Member] | ||
Significant Unobservable Input Range | 20.00% | 20.00% |
Real estate owned [Member] | ||
Valuation Techniques | Appraisal Value/ Comparison Sales/ Other estimates | Appraisal Value/ Comparison Sales/ Other estimates |
Significant Unobservable Inputs | Appraisals and or sales of comparable properties | Appraisals and or sales of comparable properties |
Real estate owned [Member] | Minimum [Member] | ||
Significant Unobservable Input Range | 10.00% | 10.00% |
Real estate owned [Member] | Maximum [Member] | ||
Significant Unobservable Input Range | 20.00% | 20.00% |
ESTIMATED FAIR VALUE OF FINAN54
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 4) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets: | |||
Cash and due from banks | $ 27,327 | $ 25,254 | |
Interest-bearing cash | 54,751 | 55,998 | |
Securities available for sale | 804,968 | 743,239 | |
Federal Home Loan Bank stock | 19,019 | 19,065 | |
Other investments | 3,429 | 3,446 | |
Derivative assets | 6,001 | 2,803 | |
Loans held for sale | 39,473 | 35,292 | |
Loans receivable, net | 2,414,234 | 2,308,050 | |
Accrued interest receivable | 12,664 | 11,992 | |
Real estate acquired through foreclosure | 1,726 | 3,106 | $ 1,179 |
Mortgage servicing rights | 23,626 | 21,003 | |
Financial liabilities: | |||
Deposits | 2,708,798 | 2,604,929 | |
Short-term borrowed funds | 354,500 | 340,500 | |
Long-term debt | 46,347 | 72,259 | |
Derivative liabilities | 129 | 156 | |
Drafts outstanding | 10,454 | 7,324 | |
Advances from borrowers for insurance and taxes | 4,558 | 3,005 | |
Accrued interest payable | 1,560 | 1,126 | |
Dividends payable to stockholders | 1,354 | 1,051 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets: | |||
Cash and due from banks | 27,327 | 25,254 | |
Interest-bearing cash | 54,751 | 55,998 | |
Securities available for sale | |||
Federal Home Loan Bank stock | |||
Other investments | |||
Derivative assets | 4,014 | 1,608 | |
Loans held for sale | |||
Loans receivable, net | |||
Accrued interest receivable | |||
Real estate acquired through foreclosure | |||
Mortgage servicing rights | |||
Financial liabilities: | |||
Deposits | |||
Short-term borrowed funds | |||
Long-term debt | |||
Derivative liabilities | 95 | ||
Drafts outstanding | |||
Advances from borrowers for insurance and taxes | |||
Accrued interest payable | |||
Dividends payable to stockholders | |||
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets: | |||
Cash and due from banks | |||
Interest-bearing cash | |||
Securities available for sale | 793,660 | 733,727 | |
Federal Home Loan Bank stock | |||
Other investments | |||
Derivative assets | 1,987 | 1,195 | |
Loans held for sale | 39,473 | 35,292 | |
Loans receivable, net | |||
Accrued interest receivable | 12,664 | 11,992 | |
Real estate acquired through foreclosure | |||
Mortgage servicing rights | |||
Financial liabilities: | |||
Deposits | 2,712,165 | 2,597,526 | |
Short-term borrowed funds | 354,595 | 339,870 | |
Long-term debt | 46,002 | 71,859 | |
Derivative liabilities | 129 | 61 | |
Drafts outstanding | 10,454 | 7,324 | |
Advances from borrowers for insurance and taxes | 4,558 | 3,005 | |
Accrued interest payable | 1,560 | 1,126 | |
Dividends payable to stockholders | 1,354 | 1,051 | |
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets: | |||
Cash and due from banks | |||
Interest-bearing cash | |||
Securities available for sale | 11,308 | 9,512 | |
Federal Home Loan Bank stock | 19,019 | 19,065 | |
Other investments | 3,429 | 3,446 | |
Derivative assets | |||
Loans held for sale | |||
Loans receivable, net | 2,422,163 | 2,311,088 | |
Accrued interest receivable | |||
Real estate acquired through foreclosure | 1,726 | 3,106 | |
Mortgage servicing rights | 29,890 | 26,255 | |
Financial liabilities: | |||
Deposits | |||
Short-term borrowed funds | |||
Long-term debt | |||
Derivative liabilities | |||
Drafts outstanding | |||
Advances from borrowers for insurance and taxes | |||
Accrued interest payable | |||
Dividends payable to stockholders | |||
Carrying Amount [Member] | |||
Financial assets: | |||
Cash and due from banks | 27,327 | 25,254 | |
Interest-bearing cash | 54,751 | 55,998 | |
Securities available for sale | 804,968 | 743,239 | |
Federal Home Loan Bank stock | 19,019 | 19,065 | |
Other investments | 3,429 | 3,446 | |
Derivative assets | 6,001 | 2,803 | |
Loans held for sale | 39,473 | 35,292 | |
Loans receivable, net | 2,414,234 | 2,308,050 | |
Accrued interest receivable | 12,664 | 11,992 | |
Real estate acquired through foreclosure | 1,726 | 3,106 | |
Mortgage servicing rights | 23,626 | 21,003 | |
Financial liabilities: | |||
Deposits | 2,708,798 | 2,604,929 | |
Short-term borrowed funds | 354,500 | 340,500 | |
Long-term debt | 46,347 | 72,259 | |
Derivative liabilities | 129 | 156 | |
Drafts outstanding | 10,454 | 7,324 | |
Advances from borrowers for insurance and taxes | 4,558 | 3,005 | |
Accrued interest payable | 1,560 | 1,126 | |
Dividends payable to stockholders | 1,354 | 1,051 | |
Fair Value [Member] | |||
Financial assets: | |||
Cash and due from banks | 27,327 | 25,254 | |
Interest-bearing cash | 54,751 | 55,998 | |
Securities available for sale | 804,968 | 743,239 | |
Federal Home Loan Bank stock | 19,019 | 19,065 | |
Other investments | 3,429 | 3,446 | |
Derivative assets | 6,001 | 2,803 | |
Loans held for sale | 39,473 | 35,292 | |
Loans receivable, net | 2,422,163 | 2,311,088 | |
Accrued interest receivable | 12,664 | 11,992 | |
Real estate acquired through foreclosure | 1,726 | 3,106 | |
Mortgage servicing rights | 29,890 | 26,255 | |
Financial liabilities: | |||
Deposits | 2,712,165 | 2,597,526 | |
Short-term borrowed funds | 354,595 | 339,870 | |
Long-term debt | 46,002 | 71,859 | |
Derivative liabilities | 129 | 156 | |
Drafts outstanding | 10,454 | 7,324 | |
Advances from borrowers for insurance and taxes | 4,558 | 3,005 | |
Accrued interest payable | 1,560 | 1,126 | |
Dividends payable to stockholders | $ 1,354 | $ 1,051 |
ESTIMATED FAIR VALUE OF FINAN55
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 5) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Commitments to Extend Credit [Member] | ||
Off-Balance Sheet Financial Instruments: | ||
Notional Amount | $ 378,608 | $ 422,065 |
Estimated Fair Value | ||
Standby Letters of Credit [Member] | ||
Off-Balance Sheet Financial Instruments: | ||
Notional Amount | 14,329 | 4,449 |
Estimated Fair Value |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disclosure Earnings Per Share Details Abstract | ||||
Weighted average shares outstanding | 21,243,094 | 16,029,332 | 20,961,182 | 14,980,349 |
Effect of dilutive securities | 210,945 | 150,839 | 213,754 | 164,447 |
Average shares outstanding | 21,454,039 | 16,180,171 | 21,174,936 | 15,144,796 |
EARNINGS PER SHARE (Details 2)
EARNINGS PER SHARE (Details 2) - shares | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Disclosure Earnings Per Share Details 2Abstract | |||
Common stock, shares issued | 22,570,182 | 21,022,202 | 16,156,943 |
Common stock, shares outstanding | 22,570,182 | 21,022,202 | 16,156,943 |
Less nonvested restricted stock awards | (137,345) | (101,489) | |
Period end dilutive shares | 20,921,144 | 16,055,454 |
SUPPLEMENTAL SEGMENT INFORMAT58
SUPPLEMENTAL SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income | $ 39,477 | $ 22,123 | $ 77,154 | $ 39,792 |
Interest expense | 6,572 | 3,025 | 12,118 | 5,424 |
Net interest income (expense) | 32,905 | 19,098 | 65,036 | 34,368 |
Provision for loan losses | 559 | 559 | ||
Noninterest income from external customers | 11,027 | 8,805 | 21,076 | 16,035 |
Intersegment noninterest income | ||||
Noninterest expense | 24,371 | 15,890 | 61,970 | 31,476 |
Intersegment noninterest expense | ||||
Income (loss) before income taxes | 19,002 | 12,013 | 23,583 | 18,927 |
Income tax expense (benefit) | 4,036 | 2,673 | 4,561 | 4,684 |
Net income (loss) | 14,966 | 9,340 | 19,022 | 14,243 |
Community Banking [Member] | ||||
Interest income | 39,060 | 21,691 | 76,317 | 38,949 |
Interest expense | 6,066 | 2,747 | 11,150 | 4,965 |
Net interest income (expense) | 32,994 | 18,944 | 65,167 | 33,984 |
Provision for loan losses | 534 | 534 | ||
Noninterest income from external customers | 5,570 | 3,494 | 10,630 | 5,912 |
Intersegment noninterest income | 242 | 242 | 483 | 483 |
Noninterest expense | 19,348 | 11,448 | 52,278 | 22,772 |
Intersegment noninterest expense | ||||
Income (loss) before income taxes | 18,924 | 11,232 | 23,468 | 17,607 |
Income tax expense (benefit) | 3,996 | 2,789 | 4,556 | 4,656 |
Net income (loss) | 14,928 | 8,443 | 18,912 | 12,951 |
Mortgage Banking [Member] | ||||
Interest income | 458 | 427 | 889 | 822 |
Interest expense | 77 | 42 | 130 | 54 |
Net interest income (expense) | 381 | 385 | 759 | 768 |
Provision for loan losses | 25 | 25 | ||
Noninterest income from external customers | 5,434 | 5,311 | 10,358 | 10,123 |
Intersegment noninterest income | 9 | 31 | 26 | 64 |
Noninterest expense | 4,748 | 4,164 | 9,137 | 8,216 |
Intersegment noninterest expense | 240 | 240 | 480 | 480 |
Income (loss) before income taxes | 811 | 1,323 | 1,501 | 2,259 |
Income tax expense (benefit) | 213 | 85 | 341 | 375 |
Net income (loss) | 598 | 1,238 | 1,160 | 1,884 |
Other [Member] | ||||
Interest income | 14 | 8 | 27 | 13 |
Interest expense | 506 | 278 | 968 | 459 |
Net interest income (expense) | (492) | (270) | (941) | (446) |
Provision for loan losses | ||||
Noninterest income from external customers | 23 | 88 | ||
Intersegment noninterest income | ||||
Noninterest expense | 275 | 278 | 554 | 488 |
Intersegment noninterest expense | 2 | 2 | 3 | 3 |
Income (loss) before income taxes | (746) | (550) | (1,410) | (937) |
Income tax expense (benefit) | (178) | (204) | (345) | (346) |
Net income (loss) | (568) | (346) | (1,065) | (591) |
Eliminations [Member] | ||||
Interest income | (55) | (3) | (79) | 8 |
Interest expense | (77) | (42) | (130) | (54) |
Net interest income (expense) | 22 | 39 | 51 | 62 |
Provision for loan losses | ||||
Noninterest income from external customers | ||||
Intersegment noninterest income | (251) | (273) | (509) | (547) |
Noninterest expense | 1 | |||
Intersegment noninterest expense | (242) | (242) | (483) | (483) |
Income (loss) before income taxes | 13 | 8 | 24 | (2) |
Income tax expense (benefit) | 5 | 3 | 9 | (1) |
Net income (loss) | $ 8 | $ 5 | $ 15 | $ (1) |
SUPPLEMENTAL SEGMENT INFORMAT59
SUPPLEMENTAL SEGMENT INFORMATION (Details 2) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | $ 3,693,091 | $ 3,519,017 |
Loans receivable, net | 2,414,234 | 2,308,050 |
Loans held for sale | 39,473 | 35,292 |
Deposits | 2,708,798 | 2,604,929 |
Borrowed funds | 400,847 | 412,759 |
Community Banking [Member] | ||
Assets | 3,690,507 | 3,516,551 |
Loans receivable, net | 2,397,896 | 2,295,316 |
Loans held for sale | 15,990 | 5,999 |
Deposits | 2,718,920 | 2,611,106 |
Borrowed funds | 368,500 | 380,500 |
Mortgage Banking [Member] | ||
Assets | 83,258 | 81,681 |
Loans receivable, net | 31,385 | 28,206 |
Loans held for sale | 23,483 | 29,293 |
Deposits | ||
Borrowed funds | 14,600 | 15,000 |
Other [Member] | ||
Assets | 584,455 | 503,144 |
Loans receivable, net | ||
Loans held for sale | ||
Deposits | ||
Borrowed funds | 32,347 | 32,259 |
Eliminations [Member] | ||
Assets | (665,129) | (582,359) |
Loans receivable, net | (15,047) | (15,472) |
Loans held for sale | ||
Deposits | (10,122) | (6,177) |
Borrowed funds | $ (14,600) | $ (15,000) |