Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 25, 2019 | Jun. 30, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | CAROLINA FINANCIAL CORP | ||
Entity Central Index Key | 870,385 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 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 | Large Accelerated Filer | ||
Entity Public Float | $ 911,858,620 | ||
Entity Common Stock, Shares Outstanding | 22,304,418 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Ex Transition Period | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 28,857 | $ 25,254 |
Interest-bearing cash | 33,276 | 55,998 |
Cash and cash equivalents | 62,133 | 81,252 |
Securities available-for-sale (cost of $844,461 at December 31, 2018 and $736,975 at December 31, 2017) | 842,801 | 743,239 |
Federal Home Loan Bank stock, at cost | 21,696 | 19,065 |
Other investments | 3,450 | 3,446 |
Derivative assets | 4,032 | 2,803 |
Loans held for sale | 16,972 | 35,292 |
Loans receivable, net of allowance for loan losses of $14,463 at December 31, 2018 and $11,478 at December 31, 2017 | 2,509,873 | 2,308,050 |
Premises and equipment, net | 60,866 | 61,407 |
Accrued interest receivable | 13,494 | 11,992 |
Real estate acquired through foreclosure, net | 1,534 | 3,106 |
Deferred tax assets, net | 5,786 | 2,436 |
Mortgage servicing rights | 32,933 | 21,003 |
Cash value life insurance | 58,728 | 57,195 |
Core deposit intangible | 16,462 | 19,601 |
Goodwill | 127,592 | 127,592 |
Other assets | 12,396 | 21,538 |
Total assets | 3,790,748 | 3,519,017 |
Liabilities [Abstract] | ||
Noninterest-bearing deposits | 547,022 | 525,615 |
Interest-bearing deposits | 2,171,171 | 2,079,314 |
Total deposits | 2,718,193 | 2,604,929 |
Short-term borrowed funds | 405,500 | 340,500 |
Long-term debt | 59,436 | 72,259 |
Derivative liabilities | 1,232 | 156 |
Drafts outstanding | 8,129 | 7,324 |
Advances from borrowers for insurance and taxes | 4,100 | 3,005 |
Accrued interest payable | 1,591 | 1,126 |
Reserve for mortgage repurchase losses | 1,292 | 1,892 |
Dividends payable to shareholders | 1,576 | 1,051 |
Accrued expenses and other liabilities | 14,414 | 11,394 |
Total liabilities | 3,215,463 | 3,043,636 |
Stockholders' equity: | ||
Preferred stock, par value $.01; 1,000,000 authorized at December 31, 2018 and December 31, 2017; no shares issued or outstanding | ||
Common stock, par value $.01; 50,000,000 and 25,000,000 shares authorized at December 31, 2018 and December 31, 2017, respectively; 22,387,009 and 21,022,202 issued and outstanding at December 31, 2018 and December 31, 2017, respectively | 224 | 210 |
Additional paid-in capital | 408,224 | 348,037 |
Retained earnings | 167,173 | 123,537 |
Accumulated other comprehensive income (loss) | (336) | 3,597 |
Total stockholders' equity | 575,285 | 475,381 |
Total liabilities and stockholders' equity | $ 3,790,748 | $ 3,519,017 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Securities available for sale at cost | $ 844,461 | $ 736,975 |
Loans, allowance for loan losses | $ 14,463 | $ 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 | 22,387,009 | 21,022,202 |
Common stock, shares outstanding | 22,387,009 | 21,022,202 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income | |||
Loans | $ 133,252 | $ 79,300 | $ 51,137 |
Investment securities | 26,222 | 14,941 | 9,274 |
Dividends from Federal Home Loan Bank stock | 1,004 | 496 | 374 |
Other interest income | 580 | 350 | 129 |
Total interest income | 161,058 | 95,087 | 60,914 |
Interest expense | |||
Deposits | 18,727 | 9,387 | 5,972 |
Short-term borrowed funds | 6,064 | 1,888 | 509 |
Long-term debt | 2,457 | 1,978 | 2,272 |
Total interest expense | 27,248 | 13,253 | 8,753 |
Net interest income | 133,810 | 81,834 | 52,161 |
Provision for loan losses | 2,059 | 779 | |
Net interest income after provision for loan losses | 131,751 | 81,055 | 52,161 |
Noninterest income | |||
Mortgage banking income | 15,295 | 15,140 | 17,226 |
Deposit service charges | 7,755 | 4,643 | 3,688 |
Net loss on extinguishment of debt | (1,868) | ||
Net (loss) gain on sale of securities | (1,946) | 933 | 706 |
Fair value adjustments on interest rate swaps | (340) | 382 | 590 |
Net increase in cash value life insurance | 1,530 | 1,116 | 902 |
Mortgage loan servicing income | 9,052 | 6,790 | 5,748 |
Debit card income, net | 4,809 | 2,308 | 1,189 |
Other | 3,741 | 2,604 | 1,116 |
Total noninterest income | 39,896 | 33,916 | 29,297 |
Noninterest expense | |||
Salaries and employee benefits | 53,517 | 37,827 | 31,475 |
Occupancy and equipment | 15,961 | 10,347 | 7,942 |
Marketing and public relations | 1,330 | 1,417 | 1,428 |
FDIC insurance | 1,090 | 721 | 702 |
Recovery of mortgage loan repurchase losses | (600) | (900) | (1,000) |
Legal expense | 422 | 507 | 306 |
Other real estate (income) expense, net | (13) | 54 | (20) |
Mortgage subservicing expense | 2,468 | 1,986 | 1,857 |
Amortization of mortgage servicing rights | 4,206 | 2,966 | 2,312 |
Amortization of core deposit intangible | 3,139 | 1,037 | 407 |
Merger related expenses | 15,216 | 8,301 | 3,245 |
Other | 12,472 | 9,182 | 7,386 |
Total noninterest expense | 109,208 | 73,445 | 56,040 |
Income before income taxes | 62,439 | 41,526 | 25,418 |
Income tax expense (benefit) | 12,769 | 12,961 | 7,848 |
Net income | $ 49,670 | $ 28,565 | $ 17,570 |
Earnings per common share: | |||
Basic (per share) | $ 2.28 | $ 1.75 | $ 1.45 |
Diluted (per share) | $ 2.26 | $ 1.73 | $ 1.42 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 21,756,595 | 16,317,501 | 12,080,128 |
Diluted (in shares) | 21,972,857 | 16,550,357 | 12,352,246 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statements Of Comprehensive Income | |||
Net income | $ 49,670 | $ 28,565 | $ 17,570 |
Other comprehensive income (loss), net of tax: | |||
Unrealized (losses) gains on securities | (7,775) | 10,047 | (3,681) |
Tax effect | 1,944 | (3,620) | 1,322 |
Reclassification adjustment for loss (gain) included in earnings | 1,946 | (933) | (706) |
Tax effect | (489) | 334 | 252 |
Unrealized gain on interest rate swaps designated as cash flow hedges | 588 | 223 | 241 |
Tax effect | (147) | (80) | (87) |
Transfer from held-to-maturity to available for sale securities | 1,023 | ||
Tax effect | (368) | ||
Other comprehensive (loss) income, net of tax | (3,933) | 5,971 | (2,004) |
Comprehensive income | $ 45,737 | $ 34,536 | $ 15,566 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Beginning Balance at Dec. 31, 2015 | $ 120 | $ 56,418 | $ 82,859 | $ 462 | $ 139,859 |
Beginning Balance (in shares) at Dec. 31, 2015 | 12,023,557 | ||||
Issuance of common stock, net of offering expenses | |||||
Stock awards | |||||
Stock awards (in shares) | 39,056 | ||||
Vested stock awards surrendered in cashless exercise | (120) | (362) | (482) | ||
Vested stock awards surrendered in cashless exercise (in shares) | (26,555) | ||||
Stock options exercised | 27 | 27 | |||
Stock options exercised (in shares) | 3,360 | ||||
Stock issued - Congaree Bancshares, Inc. merger | $ 5 | 8,545 | 8,550 | ||
Stock issued - Congaree Bancshares, Inc. merger (in shares) | 508,910 | ||||
Excess tax benefit in connection with equity awards | 15 | 15 | |||
Stock-based compensation expense, net | 1,271 | 1,271 | |||
Net income | 17,570 | 17,570 | |||
Dividends declared to stockholders | (1,616) | (1,616) | |||
Other comprehensive (loss) income, net of tax | (2,004) | (2,004) | |||
Ending Balance at Dec. 31, 2016 | $ 125 | 66,156 | 98,451 | (1,542) | 163,190 |
Ending 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 awards | $ 1 | 107 | 108 | ||
Stock awards (in shares) | 113,768 | ||||
Vested stock awards surrendered in cashless exercise | (398) | (1,391) | (1,789) | ||
Vested stock awards surrendered in cashless exercise (in shares) | (59,700) | ||||
Stock options exercised | 10 | 10 | |||
Stock options exercised (in shares) | 600 | ||||
Stock issued - Congaree Bancshares, Inc. merger | $ 18 | 54,205 | 54,223 | ||
Stock issued - Congaree Bancshares, Inc. merger (in shares) | 1,789,523 | ||||
Stock issued - First South Bancorp, Inc. merger | $ 48 | 178,646 | 178,694 | ||
Stock issued - First South Bancorp, Inc. merger (in shares) | 4,822,540 | ||||
Stock-based compensation expense, net | 1,658 | 1,658 | |||
Net income | 28,565 | 28,565 | |||
Dividends declared to stockholders | (2,920) | (2,920) | |||
Other comprehensive (loss) income, net of tax | 5,971 | 5,971 | |||
Reclassification of AOCI due to statutory tax rate change | 832 | (832) | |||
Ending Balance at Dec. 31, 2017 | $ 210 | 348,037 | 123,537 | 3,597 | 475,381 |
Ending 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 | 106 | 107 | ||
Stock awards (in shares) | 55,255 | ||||
Vested stock awards surrendered in cashless exercise | (303) | (471) | (774) | ||
Vested stock awards surrendered in cashless exercise (in shares) | (22,411) | ||||
Stock options exercised | 56 | 56 | |||
Stock options exercised (in shares) | 7,596 | ||||
Stock repurchase plan, net of commissions | $ (2) | (5,379) | (5,381) | ||
Stock repurchase plan, net of commissions (in shares) | (175,633) | ||||
Stock-based compensation expense, net | 2,700 | 2,700 | |||
Net income | 49,670 | 49,670 | |||
Dividends declared to stockholders | (5,563) | (5,563) | |||
Other comprehensive (loss) income, net of tax | (3,933) | (3,933) | |||
Ending Balance at Dec. 31, 2018 | $ 224 | $ 408,224 | $ 167,173 | $ (336) | $ 575,285 |
Ending Balance (in shares) at Dec. 31, 2018 | 22,387,009 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 49,670 | $ 28,565 | $ 17,570 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Provision for loan losses | 2,059 | 779 | |
Deferred income tax expense (benefit) | (1,530) | 8,226 | 800 |
Amortization of unearned discount/premiums on investments, net | 4,595 | 3,856 | 3,039 |
Amortization of deferred loan fees | (2,386) | (1,279) | (674) |
Accretion of acquired loans | (8,928) | (4,286) | (814) |
Amortization of core deposit intangibles | 3,139 | 1,037 | 407 |
Loss (gain) on sale of available-for-sale securities, net | 1,946 | (933) | (706) |
Mortgage banking income | (15,295) | (15,140) | (17,226) |
Originations of loans held for sale | (852,929) | (909,627) | (972,422) |
Proceeds from sale of loans held for sale | 886,544 | 922,431 | 999,853 |
Loss on extinguishment of debt | 1,868 | ||
Provision for mortgage loan repurchase losses | (600) | (900) | (1,000) |
Mortgage loan losses paid, net of recoveries | (88) | 4 | |
Fair value adjustments on interest rate swaps | 340 | (382) | (590) |
Stock-based compensation | 2,700 | 1,658 | 1,271 |
Increase in cash surrender value of bank owned life insurance | (1,530) | (1,116) | (902) |
Depreciation | 4,181 | 2,756 | 1,972 |
(Gain) loss on disposals of premises and equipment | (2) | 23 | (1) |
Gain on sale of real estate acquired through foreclosure | (110) | (33) | (88) |
Write-down of real estate acquired through foreclosure | 126 | 15 | |
Purchases of mortgage servicing assets | (9,853) | ||
Originations of mortgage servicing assets | (6,283) | (6,061) | (5,911) |
Amortization of mortgage servicing assets | 4,206 | 2,966 | 2,312 |
Accrued interest receivable | (1,502) | (6,619) | (754) |
Other assets | 9,752 | (29,271) | (1,737) |
Increase (decrease) in: | |||
Accrued interest payable | 465 | 799 | (28) |
Dividends payable to shareholders | 525 | 549 | 141 |
Accrued expenses and other liabilities | 106 | (6,588) | 2,365 |
Cash flows provided by (used in) operating activities | 69,406 | (8,678) | 28,764 |
Activity in available-for-sale securities: | |||
Purchases | (351,329) | (345,778) | (165,510) |
Maturities, payments and calls | 105,005 | 77,781 | 57,909 |
Proceeds from sales | 135,681 | 173,727 | 99,113 |
Increase in other investments | (37) | (29) | |
Increase in Federal Home Loan Bank stock | (2,631) | (6,400) | (804) |
Increase in loans receivable, net | (192,852) | (182,467) | (180,077) |
Purchase of premises and equipment | (3,724) | (7,002) | (3,714) |
Proceeds from disposals of premises and equipment | 10 | 1 | |
Proceeds from sale of real estate acquired through foreclosure | 1,840 | 660 | 3,898 |
Purchase of bank owned life insurance | (25) | (25) | |
Net cash received for acquisitions | 122,320 | 3,668 | |
Cash flows used in investing activities | (308,000) | (167,221) | (185,570) |
Cash flows from financing activities: | |||
Net increase in deposit accounts | 113,264 | 83,230 | 137,407 |
Net increase in Federal Home Loan Bank advances | 52,177 | 100,772 | 13,632 |
Net increase in drafts outstanding | 805 | 1,101 | 4,069 |
Net increase in advances from borrowers for insurance and taxes | 1,095 | 1,947 | 417 |
Cash dividends paid on common stock | (5,563) | (2,371) | (1,475) |
Proceeds from issuance of common stock | 63,022 | 47,671 | |
Cash paid for common stock repurchase | (5,381) | ||
Net increase in excess tax benefit in connection with equity awards | 439 | 454 | |
Proceeds from exercise of stock options | 56 | 10 | 27 |
Cash flows provided by financing activities | 219,475 | 232,799 | 154,531 |
Net increase (decrease) in cash and cash equivalents | (19,119) | 56,900 | (2,275) |
Cash and cash equivalents at beginning of year | 81,252 | 24,352 | 26,627 |
Cash and cash equivalents at end of year | 62,133 | 81,252 | 24,352 |
Supplemental disclosure | |||
Cash paid for Interest on deposits and borrowed funds | 26,783 | 12,454 | 8,759 |
Cash paid for Income taxes paid, net of refunds | 6,822 | 11,521 | 7,101 |
Noncash investing and financing activities: | |||
Transfer of loans receivable to real estate acquired through foreclosure | 285 | 2,554 | 2,630 |
Transfer of available-for-sale securities to held-to-maturity securities | 16,955 | ||
Acquisitions: | |||
Assets acquired, net of cash | 1,356,242 | 100,554 | |
Liabilities assumed | 1,345,119 | 92,203 | |
Net (liabilities) assets | 11,123 | 8,351 | |
Goodwill and fair value acquisition adjustments | $ 123,325 | $ 4,266 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 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 Crescent Mortgage Company, Carolina Services Corporation of Charleston (“Carolina Services”), DTFS, Inc., 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 December 31, 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. 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. 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 except as follows: On January 23, 2019, the Company’s Board of Directors declared a $0.08 dividend per common share payable on April 5, 2019 to stockholders of record as of March 15, 2019. Cash and Cash Equivalents Cash and cash equivalents consists of cash and due from banks and interest-bearing cash with banks. Substantially all of the interest-bearing cash at December 31, 2018 and 2017 consists of Federal Reserve Bank of Richmond (“FRB”) and Federal Home Loan Bank of Atlanta (“FHLB”) overnight deposits. Cash and cash equivalents have maturities of three months or less. The Bank is required to maintain average balances on hand or with the FRB. Cash on hand satisfied the reserve requirements at December 31, 2018 and December 31, 2017. Securities Investment securities are classified into three categories: (a) Held-to-Maturity – debt securities that the Company has positive intent and ability to hold to maturity, which are reported at amortized cost; (b) Trading – debt and equity securities that are bought and held principally for the purpose of selling them in the near term, which are reported at fair value, with unrealized gains and losses included in earnings; and (c) Available-for-Sale securities that may be sold under certain conditions, which are reported at fair value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive income. The Company determines the category of the investment at the time of purchase. If a security is transferred from available–for-sale to held-to-maturity, the fair value at the time of transfer becomes the held-to-maturity security’s new cost basis. Premiums and discounts on securities are accreted and amortized as an adjustment to interest yield over the estimated life of the security using a method which approximates a level yield. Dividends and interest income are recognized when earned. Unrealized losses on securities, reflecting a decline in value judged by the Company to be other-than-temporary, are charged to income in the consolidated statements of operations. The cost basis of securities sold is determined by specific identification. Purchases and sales of securities are recorded on a trade date basis. Loans Held for Sale The Company’s residential mortgage lending activities for sale in the secondary market are comprised of accepting residential mortgage loan applications, qualifying borrowers to standards established by investors, funding residential mortgage loans and selling mortgage loans to investors under pre-existing commitments. Loans held for sale are recorded at fair value. 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. Adjustments to reflect unrealized gains and losses resulting from changes in fair value and realized gains and losses upon ultimate sale of the loans are classified as mortgage banking income in the Consolidated Statements of Operations. The Company issues rate lock commitments to borrowers on prices quoted by secondary market investors. Derivatives related to these commitments are recorded as either assets or liabilities in the balance sheet and are measured at fair value. Changes in the fair value of the derivatives are reported in current earnings or other comprehensive income depending on the purpose for which the derivative is held and whether the derivative qualifies for hedge accounting. Derivative Financial Instruments Derivatives are recognized as either assets or liabilities and are recorded at fair value on the Company’s Consolidated Balance Sheet. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. The Company’s hedging policies permit the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. If derivative instruments are designated as fair value hedges, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. If derivative instruments are designated as cash flow hedges, fair value adjustments related to the effective portion are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of cash flow hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, the Company formally assesses whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, the Company will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. For derivatives not designated as hedges, changes in fair value are recognized in earnings, in noninterest income. For additional discussion related to the determination of fair value related to derivative instruments, see Note 5. Loans Receivable, Net Loans that management has originated and has the intent and ability to hold for the foreseeable future are reported at their outstanding principal balances net of any unearned income, charge-offs, deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. The net amount of nonrefundable loan origination fees, commitment fees and certain direct costs associated with the lending process are deferred and amortized to interest income over the contractual lives of the loans using methods that approximate a level yield. Commercial loans and substantially all installment loans accrue interest on the unpaid balance of the loans. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral-dependent. When the fair value of the impaired loan is less than the recorded investment in the loan, the impairment is recorded through a specific reserve allocation that is a component of the allowance for loan losses. A loan is charged-off against the allowance for loan losses when all meaningful collection efforts have been exhausted and the loan is viewed as uncollectable in the immediate or foreseeable future. Acquired credit impaired loans are initially recorded at a discount to recognize the difference in the fair value of the loans and the contractual balance. The discount includes a component to recognize the absolute difference between the contractual value and the amount expected to be collected (total cash flow) as well as a component to recognize the net present value of that future amount to be collected. The net present value component is accretable into income and, therefore, generates a yield on all acquired credit impaired loans, regardless of past due status. Therefore, acquired credit impaired loans are considered to be accruing. Acquired credit impaired loans that are greater than 90 days past due are placed into the greater than 90 days past due and still accruing category when analyzing the aging status of the loan portfolio. See Note 6 – Loans Receivable, Net for further detail. Troubled Debt Restructurings (“TDRs”) The Company designates loan modifications as TDRs when, for economic or legal reasons related to the borrower’s financial difficulties, it grants a concession to the borrower that it would not otherwise consider. Loans on nonaccrual status at the date of modification are initially classified as nonaccrual TDRs. Loans on accruing status at the date of modification are initially classified as accruing TDRs at the date of modification, if the note is reasonably assured of repayment and performance is in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the modification date if reasonable doubt exists as to the collection of interest or principal under the restructuring agreement. Nonaccrual TDRs are returned to accrual status when there is economic substance to the restructuring, there is well documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated repayment performance in accordance with the modified terms for a reasonable period of time, generally a minimum of six months. Nonperforming Assets Nonperforming assets include loans on which interest is not being accrued, accruing loans that are 90 days or more delinquent and foreclosed property. Foreclosed property consists of real estate and other assets acquired as a result of a borrower’s loan default. Generally, a loan is placed on nonaccrual status when it becomes 90 days past due as to principal or interest, or when we believe, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that collection of the loan is doubtful. A payment of interest on a loan that is classified as nonaccrual is recognized as a reduction of principal when received. In general, a nonaccrual loan may be placed back onto accruing status once the borrower has made a minimum of six consecutive payments in accordance with the loan terms. Further, the borrower must show capacity to continue performing into the future prior to restoration of accrual status. Assets acquired as a result of foreclosure are initially recorded at fair value less estimated selling costs at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Gains and losses on the sale of assets acquired through foreclosure and related revenue and expenses of these assets are included in noninterest expense in other real estate expenses, net. Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. These analyses involve a high degree of judgment in estimating the amount of loss associated with specific loans, including estimating the amount and timing of future cash flows and collateral values. Impaired loans are evaluated for impairment using the discounted cash flow methodology or based on the net realizable value of the underlying collateral. Impaired loans are individually reviewed on a quarterly basis to determine the level of impairment. Factors considered by management in determining impaired loans include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. If a loan has impairment, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. For collateral-dependent loans, the measurement of impairment was based on the net investment of the loan compared to the fair value of the collateral less estimated selling costs. In most cases, the fair value of the collateral was based on appraised value. When appropriate, the fair value was based on the probable sales price of the collateral when sale of the collateral was imminent or contracted sales price if the collateral is subject to a binding sales contract as of the end of the quarter. The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The Company considers the actual loss history experience over the trailing twenty quarters to determine the historical loss experience used in the general component. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries for the most recent twenty quarters; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. While management uses the best information available to establish the allowance for loan losses, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the valuations or, if required by regulators, based upon information available to them at the time of their examinations. Such adjustments to original estimates, as necessary, are made in the period in which these factors and other relevant considerations indicate that loss levels may vary from previous estimates. Business Combinations and Method of Accounting for Loans Acquired The Company accounts for its acquisitions under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations 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. 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. In determining the Day 1 Fair Values of acquired loans without evidence of credit deterioration at the date of acquisition, management includes (i) no carryover of any previously recorded allowance for loan losses and (ii) an adjustment of the unpaid principal balance to reflect an appropriate market rate of interest, given the risk profile and grade assigned to each loan. This adjustment will be accreted into earnings as a yield adjustment, using the effective yield method, over the remaining life of each loan. To the extent that current information indicates it is probable that the Company will collect all amounts according to the contractual terms thereof, such loan is not considered impaired and is not considered in the determination of the required allowance for loan losses. To the extent that current information indicates it is probable that the Company will not be able to collect all amounts according to the contractual terms thereon, such loan is considered impaired and is considered in the determination of the required level of allowance for loan and lease losses. Subsequent to the acquisition date, increases in cash flows expected to be received on purchased credit impaired loans in excess of the Company’s initial estimates are reclassified from nonaccretable difference to accretable yield and are accreted into interest income on a level-yield basis over the remaining life of the loan. Decreases in cash flows expected to be collected are recognized as impairment through the provision for loan losses. Goodwill and Core Deposit Intangible Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill is not amortized but instead is subject to review for impairment annually, or more frequently if deemed necessary. Also in connection with business combinations, the Company records core deposit intangibles, representing the value of the acquired core deposit base. Core deposit intangibles are amortized over their estimated useful lives ranging up to 10 years. Mortgage Servicing Rights, Fees and Costs 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 using the amortization method. Mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing income. The amortization of the mortgage servicing rights is analyzed periodically and is adjusted to reflect changes in prepayment rates and other estimates. The Company evaluates potential impairment of mortgage servicing rights based on the difference between the carrying amount and current estimated fair value of the servicing rights. In determining impairment, the Company aggregates all servicing rights and stratifies them into tranches based on predominant risk characteristics. If impairment exists, a valuation allowance is established for any excess of amortized cost over the current estimated fair value by a charge to income. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Service fee income is recorded for fees earned for servicing mortgage loans under servicing agreements with the Federal National Mortgage Association (“FNMA”), the Federal Home Loan Mortgage Corporation (“FHLMC”), Government National Mortgage Association (“GNMA”) and certain private investors. The fees are based on a contractual percentage of the outstanding principal balance of the loans serviced and are recorded as income when received in noninterest income. Amortization of mortgage servicing rights and mortgage servicing costs are charged to expense when incurred. Guarantees Standby letters of credit obligate the Company to meet certain financial obligations of its customers, under the contractual terms of the agreement, if the customers are unable to do so. Payment is only guaranteed under these letters of credit upon the borrower’s failure to perform its obligations to the beneficiary. The Company can seek recovery of the amounts paid from the borrower; however, these standby letters of credit are generally not collateralized. Commitments under standby letters of credit are usually one year or less. At December 31, 2018 and 2017, the Company had recorded no liability for the current carrying amount of the obligation to perform as a guarantor; as such amounts are not considered material. Premises and Equipment, Net Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the asset’s estimated useful life. Estimated lives range up to forty years for buildings and improvements and up to ten years for furniture, fixtures and equipment. Maintenance and repairs are charged to expense as incurred. Improvements that extend the lives of the respective assets are capitalized. When property or equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the respective accounts and the resulting gain or loss is reflected in income. Income Taxes The provision for income taxes is based upon income or loss before taxes for financial statement purposes, adjusted for nontaxable income and nondeductible expenses. Deferred income taxes have been provided when different accounting methods have been used in determining income for income tax purposes and for financial reporting purposes. Deferred tax assets and liabilities are recognized based on future tax consequences attributable to differences arising from the financial statement carrying values of assets and liabilities and their tax bases. In the event of changes in the tax laws, deferred tax assets and liabilities are adjusted in the period of the enactment of those changes, with the cumulative effects included in the current year’s income tax provision. Positions taken by the Company’s tax returns may be subject to challenge by the taxing authorities upon examination. The benefits of uncertain tax positions are initially recognized in the financial statements only when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. The Company believes that its income tax filing positions taken or expected to be taken in its tax returns will more likely than not be sustained upon audit by the taxing authorities and does not anticipate any adjustments that will result in a material adverse impact on the Company’s financial condition, results of operations, or cash flow. Therefore, no reserves for uncertain tax positions have been recorded. The Company’s federal income tax returns were not examined. Interest and penalties on income tax uncertainties are classified within income tax expense in the statement of operations. There were no significant interest and penalties paid on income tax uncertainties during 2018 or 2017. It is management’s belief that the realization of the remaining net deferred tax assets is more likely than not. Accordingly, no additional reserve was considered necessary. See Note 13 for additional information. Drafts Outstanding The Company invests excess funds on deposit at other banks (including amounts on deposit for payment of outstanding disbursement checks) on a daily basis in an overnight interest-bearing account. Accordingly, outstanding checks are reported as a liability. Reserve for Mortgage Loan Repurchase Losses The Company sells mortgage loans to various third parties, including government-sponsored entities, under contractual provisions that include various representations and warranties that typically cover ownership of the loan, compliance with loan criteria set forth in the applicable agreement, validity of the lien securing the loan, absence of delinquent taxes or liens against the property securing the loan, and similar matters. The Company may be required to repurchase the mortgage loans with identified defects, indemnify the investor or insurer, or reimburse the investor for credit loss incurred on the loan (collectively “repurchase”) in the event of a material breach of such contractual representations or warranties. Risk associated with potential repurchases or other forms of settlement is managed through underwriting and quality assurance practices and by servicing mortgage loans to meet investor and secondary market standards. The Company establishes mortgage repurchase reserves related to various representations and warranties that reflect management’s estimate of losses based on a combination of factors. Such factors incorporate estimated levels of defects on internal quality assurance, default expectations, historical investor repurchase demand and appeals success rates, reimbursement by correspondent and other third party originators, changes in the regulatory repurchase framework and projected loss severity. The Company establishes a reserve at the time loans are sold and quarterly updates the reserve estimate during the estimated loan life. The following table presents activity in the reserve for mortgage loan repurchase losses: December 31, 2018 2017 2016 (In thousands) Beginning Balance $ 1,892 2,880 3,876 Losses paid — (88 ) (21 ) Recoveries — — 25 Recovery for mortgage repurchase losses (600 ) (900 ) (1,000 ) Ending balance $ 1,292 1,892 2,880 Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Off-Balance-Sheet Financial Instruments In the ordinary course of business, the Company entered into off-balance-sheet financial instruments consisting of commitments to extend credit, commitments under revolving credit agreements, and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded. Stock Compensation Plans The Company can issue stock options, restricted stock, and restricted stock units under various plans to directors, officers and other key employees. The Company accounts for its stock compensation plans in accordance with ASC Topics 718 and 505. Under those provisions, the Company has adopted a fair value based method of accounting for employee stock compensation plans, whereby compensation cost is measured at the grant date based on the value of the award and is recognized on a straight-line basis over the service period, which is usually the vesting period, taking into account retirement eligibility. As a result, compensation expense relating to stock options and restricted stock is reflected in net income as part of “salaries and employee benefits” on the consolidated statements of operations. Earnings Per Common 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 |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions: | |
BUSINESS COMBINATION | NOTE 2 – BUSINESS COMBINATIONS Acquisition of First South 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 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. November 1, 2017 As Reported by Fair Value As Recorded by (In thousands) Assets 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) 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 First South’s historical allowance for loan losses. (c) Adjustment reflects fair value adjustments on acquired branch and administrative offices based from the Company’s assessment. (d) Adjustment reflects the impact of acquisition accounting fair value adjustments. (e) Adjustment reflects the fair value adjustment to record the estimated core deposit intangible based on the Company’s assessment. (f) Adjustment reflects the tax impact of acquisition accounting fair value adjustments. (g) Adjustment reflects the fair value adjustment based on the Company’s evaluation of acquired other assets. (h) Adjustment represents the fair value adjustment due to interest rate factors. (i) Adjustment represents the fair value adjustment due to interest rate factors. (j) Adjustment 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, pursuant to the Agreement and Plan of Merger, dated as of November 7, 2016. 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. March 18, 2017 As Reported Fair Value As Recorded by 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 the Company’s assessment. (d) Adjustment reflects the fair value adjustment to record the estimated core deposit intangible based on the Company’s assessment. (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. Acquisition of Congaree Bancshares, Inc. On June 11, 2016, the Company completed its acquisition of Congaree Bancshares, Inc. (“Congaree”), the holding company for Congaree State Bank, pursuant to the Agreement and Plan of Merger, dated as of January 5, 2016. Under the terms of the merger agreement, each share of Congaree common stock was converted into the right to receive $8.10 in cash or 0.4806 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 thousands). Common stock issued (508,910 shares) $ 8,557 Cash payments to common stockholders 5,724 Preferred shares assumed and redeemed at par 1,564 Fair value of Congaree stock options assumed - paid out in cash 439 Total consideration paid $ 16,284 The following table presents the Congaree assets acquired and liabilities assumed as of June 11, 2016 as well as the related fair value adjustments and determination of goodwill. As Reported by Fair Value As Recorded by Assets (In thousands) Cash and cash equivalents $ 11,394 — 11,394 Securities available-for-sale 9,453 (59 )(a) 9,394 Loans 78,712 (4,111 )(b) 74,601 Allowance for loan losses (1,112 ) 1,112 (c) — Premises and equipment 2,712 38 (d) 2,750 Foreclosed assets 1,710 (250 )(e) 1,460 Core deposit intangible — 1,104 (f) 1,104 Deferred tax asset 1,813 915 (g) 2,728 Other assets 942 (152 )(h) 790 Total assets acquired $ 105,624 (1,403 ) 104,221 Liabilities Deposits $ 89,227 98 (i) 89,325 Borrowings 2,500 — 2,500 Other liabilities 378 — 378 Total liabilities assumed $ 92,105 98 92,203 Net assets acquired 12,018 Total consideration paid 16,284 Goodwill $ 4,266 Explanation of fair value adjustments: (a) Adjustment reflects opening fair value of securities portfolio, which was established as the new book basis of the portfolio. (b) Adjustment reflects the fair value adjustment based on the Company’s assessment. (c) Adjustment reflects the elimination of Congaree’s historical allowance for loan losses. (d) Adjustment reflects fair value adjustments on acquired branch and administrative offices based on the Company’s assessment. (e) Adjustment reflects the fair value adjustment based on the Company’s evaluation of the foreclosed assets. (f) Adjustment reflects the fair value adjustment to record the estimated core deposit intangible based on the Company’s assessment. (g) Adjustment reflects the tax impact of acquisition accounting fair value adjustments. (h) Adjustment reflects the fair value adjustment based on the Company’s evaluation of acquired other assets. (i) Adjustment reflects the fair value adjustment based on the Company’s assessment. Supplemental Pro Forma Information The operating results of the Company include the operating results of the acquired assets and assumed liabilities since the date of acquisitions of First South, Greer and Congaree. The Company completed the system conversion of Greer and Congaree in the quarter following the acquisition date. The First South conversion occurred during the first quarter of 2018. The table below presents unaudited supplemental pro forma information as if the First South, Greer and Congaree acquisitions had occurred at the beginning of the earliest period presented, which was January 1, 2016 and were included for all periods presented, except for Congaree which is already included in historical information for 2017. Pro forma results include adjustments for amortization and accretion of fair value adjustments and do not include any projected cost savings or other anticipated benefits of the merger. Therefore, the pro forma financial information is not indicative of the results of operations that would have occurred had the transactions been effected on the assumed date. Pre-tax merger-related costs of $15.2 million, $8.3 million and $3.2 million for the years ended December 31, 2018, 2017 and 2016, respectively, are included in the Company’s Consolidated Statements of Operations and are not included in the pro forma statements below. For The Year Ended December 31, 2017 2016 (In thousands, except share data) Net interest income (a) $ 122,739 $ 108,519 Net income (a) $ 43,435 $ 36,336 Weighted average shares outstanding: Basic (b) 20,724,990 18,917,650 Diluted (b) 20,957,846 19,189,768 Earnings per common share: Basic $ 2.10 $ 1.92 Diluted $ 2.07 $ 1.89 (a) Supplemental pro forma net income includes the impact of certain fair value adjustments. Supplemental pro forma net income does not include assumptions on cost saves or impact of merger related expenses. (b) Weighted average shares outstanding include the full effect of the common stock issued in connection with the acquisitions as of the earliest reporting date. The Company may have refined its valuations of acquired First South and Greer assets and liabilities for up to one year following the merger date. As of December 31, 2018, there have been no measurement period adjustments recognized during the reporting period. |
CORE DEPOSIT INTANGIBLES
CORE DEPOSIT INTANGIBLES | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
CORE DEPOSIT INTANGIBLES | NOTE 3 - CORE DEPOSIT INTANGIBLES In connection with business combinations, the Company records core deposit intangibles, representing the value of the acquired core deposit base. As of December 31, 2018 and 2017, core deposit intangible was $16.5 million and $19.6 million, respectively. The estimated future amortization is subject to change to the extent management determines it is necessary to make adjustments to the carrying value or estimated useful life of the core deposit intangibles. Amortization expense (in thousands) for core deposit intangible is expected to be as follows. Year 1 $ 2,910 Year 2 2,682 Year 3 2,432 Year 4 2,200 Year 5 1,971 Thereafter 4,267 Total $ 16,462 Amortization expense of $3.1 million, $1.0 million and $0.4 million related to the core deposit intangible was recognized in 2018, 2017 and 2016 respectively. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE 4 - SECURITIES The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investment securities available-for-sale at December 31, 2018 and 2017 follows: At December 31, 2018 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 $ 212,215 2,768 (1,269 ) 213,714 240,904 6,790 (344 ) 247,350 US government agencies 24,772 505 — 25,277 11,983 34 (9 ) 12,008 Collateralized loan obligations 231,172 119 (592 ) 230,699 128,080 581 (18 ) 128,643 Corporate securities 6,915 69 (24 ) 6,960 6,891 115 — 7,006 Mortgage-backed securities: Agency 199,518 427 (2,425 ) 197,520 243,075 1,234 (714 ) 243,595 Non-agency 158,803 423 (1,695 ) 157,531 94,834 551 (260 ) 95,125 Total mortgage-backed securities 358,321 850 (4,120 ) 355,051 337,909 1,785 (974 ) 338,720 Trust preferred securities 11,066 1,713 (1,679 ) 11,100 11,208 1,132 (2,828 ) 9,512 Total $ 844,461 6,024 (7,684 ) 842,801 736,975 10,437 (4,173 ) 743,239 The amortized cost and fair value of debt securities by contractual maturity at December 31, 2018 follows: 2018 Amortized Fair Cost Value (In thousands) Securities available-for-sale: Five years or less $ 7,566 7,635 Six to ten years 123,883 124,586 After ten years 713,012 710,580 Total $ 844,461 842,801 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 Years Ended December 31, 2018 2017 (In thousands) Proceeds $ 135,681 173,727 Realized gains 494 1,519 Realized losses (2,440 ) (586 ) Total investment securities (loss) gain, net $ (1,946 ) 933 At December 31, 2018, the Company had pledged securities with a market value of $84.3 million as collateral for Federal Home Loan Bank (“FHLB”) advances. At December 31, 2017, the Company has no securities pledged for FHLB advances. At December 31, 2018, the Company has pledged $165.5 million of securities to secure public agency funds. At December 31, 2017, the Company has pledged securities with a market value of $178.2 million to secure public agency funds. The following tables summarize gross unrealized losses on investment securities and the fair market value of the related securities at December 31, 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 December 31, 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 $ 12,395 12,331 (64 ) 55,189 53,984 (1,205 ) 67,584 66,315 (1,269 ) US government agencies — — — — — — — — — Collateralized loan obligations 146,913 146,344 (569 ) 5,000 4,977 (23 ) 151,913 151,321 (592 ) Corporate securities 2,980 2,956 (24 ) — — — 2,980 2,956 (24 ) Mortgage-backed securities: Agency 14,615 14,450 (165 ) 120,325 118,065 (2,260 ) 134,940 132,515 (2,425 ) Non-agency 71,376 70,709 (667 ) 43,138 42,110 (1,028 ) 114,514 112,819 (1,695 ) Total mortgage-backed securities 85,991 85,159 (832 ) 163,463 160,175 (3,288 ) 249,454 245,334 (4,120 ) Trust preferred securities — — — 8,214 6,535 (1,679 ) 8,214 6,535 (1,679 ) Total $ 248,279 246,790 (1,489 ) 231,866 225,671 (6,195 ) 480,145 472,461 (7,684 ) 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 ) Corporate securities — — — — — — — — — 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 December 31, 2018 and December 31, 2017, the Company had 214 and 135, respectively, of individual investments available-for-sale that were in an unrealized loss position. The unrealized losses on the Company’s investments 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. At December 31, 2017 and 2016, the Company had 135 and 81, respectively, of 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 as needed, and determined that no OTTI expense was necessary during 2017 or 2016. As of December 31, 2017, trust preferred securities had an amortized cost of $11.2 million and a fair value of $9.5 million. For each trust preferred security, impairment testing was performed on a quarterly basis using a detailed cash flow analysis. As noted above, management believes that there are no additional securities other-than-temporarily impaired at December 31, 2018 or 2017. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities before recovery of their amortized cost. Management continues to monitor these securities with a high degree of scrutiny. There can be no assurance that the Company will not conclude in future periods that conditions existing at that time indicate some or all of the securities may be sold or are other-than-temporarily impaired, which would require a charge to earnings in such periods. The following table presents detail of non-marketable investments at December 31, 2018 and 2017. At December 31, 2018 2017 (In thousands) Community Reinvestment Act fund $ 2,334 2,330 Investment in Statutory Business Trusts 1,116 1,116 Total other investments 3,450 3,446 Federal Home Loan Bank stock 21,696 19,065 Total non-marketable investments $ 25,146 22,511 The Company, as a member of the FHLB, is required to own capital stock in the FHLB based generally upon a membership-based requirement and an activity-based requirement. FHLB capital stock is pledged to secure FHLB advances. No secondary market exists for this stock, and it has no quoted market price. However, redemption through the FHLB of this stock has historically been at par value. For additional information regarding the investments in statutory business trust, see Note 12-Long Term Debt. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 5 – 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 December 31, 2018 and December 31, 2017 are as follows: At December 31, 2018 2017 Fair Notional Fair Notional Value Value Value Value (In thousands) Derivative assets: Cash flow hedges: Interest rate swaps $ 1,232 45,000 644 45,000 Non-hedging derivatives: Interest rate swaps 1,198 50,000 964 50,000 Mortgage loan interest rate lock commitments 1,199 76,571 890 98,584 Mortgage loan forward sales commitments 403 13,241 305 23,401 Total derivative assets $ 4,032 184,812 2,803 216,985 Derivative liabilities: Non-hedging derivatives: Interest rate swaps $ 937 50,000 95 5,000 Mortgage-backed securities forward sales commitments 295 52,000 61 75,000 Total derivative liabilities $ 1,232 102,000 156 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 | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
LOANS RECEIVABLE, NET | NOTE 6 - 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 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 five 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 who leads a team 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 December 31, 2018 and December 31, 2017, there were approximately $99.8 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 December 31, 2018 and December 31, 2017, there were approximately $23.1 million and $24.0 million in lease receivables outstanding. Lease receivables are grouped within commercial business loans below. Consumer Loans. Loans receivable, net at December 31, 2018 and 2017 are summarized by category as follows: At December 31, 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 $ 732,717 29.03 % 665,774 28.70 % Home equity 83,770 3.32 % 90,141 3.89 % Commercial real estate 1,034,117 40.96 % 933,820 40.26 % Construction and development 290,494 11.51 % 294,793 12.71 % Consumer loans 23,845 0.94 % 19,990 0.86 % Commercial business loans 359,393 14.24 % 315,010 13.58 % Total gross loans receivable 2,524,336 100.00 % 2,319,528 100.00 % Less: Allowance for loan losses 14,463 11,478 Total loans receivable, net $ 2,509,873 2,308,050 Loans receivable, net at December 31, 2018 and 2017 for purchased non-credit impaired loans and nonacquired loans are summarized by category as follows: At December 31, At December 31, 2018 2017 Purchased Non-Credit Impaired Loans % of Total % of Total (ASC 310-20) and Nonpurchased Loans: Amount Loans Amount Loans (Dollars in thousands) Loans secured by real estate: One-to-four family $ 723,641 29.24 % 654,597 29.21 % Home equity 83,717 3.38 % 89,961 4.01 % Commercial real estate 1,004,420 40.59 % 891,469 39.77 % Construction and development 287,673 11.63 % 287,437 12.83 % Consumer loans 23,792 0.96 % 19,895 0.89 % Commercial business loans 351,194 14.20 % 297,754 13.29 % Total gross loans receivable 2,474,437 100.00 % 2,241,113 100.00 % Less: Allowance for loan losses 14,463 11,478 Total loans receivable, net $ 2,459,974 2,229,635 Loans receivable, net at December 31, 2018 and 2017 for purchased credit impaired loans are summarized by category as follows: At December 31, 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 $ 9,077 18.19 % 11,177 14.25 % Home equity 53 0.11 % 180 0.23 % Commercial real estate 29,696 59.51 % 42,351 54.01 % Construction and development 2,821 5.65 % 7,356 9.38 % Consumer loans 53 0.11 % 95 0.12 % Commercial business loans 8,199 16.43 % 17,256 22.01 % Total gross loans receivable 49,899 100.00 % 78,415 100.00 % Less: Allowance for loan losses — — Total loans receivable, net $ 49,899 78,415 Included in the loan totals, net of purchase discount, were $686.4 million and $952.2 million in loans acquired through acquisitions at December 31, 2018 and December 31, 2017, respectively. At December 31, 2018 and December 31, 2017, the purchase discount on purchased non-credit impaired loans was $10.9 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 December 31, 2018, the outstanding balance and recorded investment of PCI loans was $63.7 million and $49.9 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 table below presents changes in the value of PCI loans for the year ended December 31, 2018 and 2017. At December 31, 2018 2017 (In thousands) Balance at beginning of period $ 78,415 — Fair value of acquired loans — 86,732 Net reductions for payments, foreclosures, and accretion (28,516 ) (8,317 ) Balance at end of period, net of allowance for loan losses on PCI loans $ 49,899 78,415 The table below presents changes in the value of the accretable yield for PCI loans for the year ended December 31, 2018. At December 31, 2018 2017 (In thousands) Accretable yield, beginning of period $ 12,536 — Additions — 14,472 Accretion (6,092 ) (1,936 ) Reclassification from nonaccretable balance, net (a) 8,147 — Other changes, net (b) 5,317 — Accretable yield, end of period $ 19,908 12,536 (a) Reclassifications from the nonaccretable balance in the year ended December 31, 2018 were driven by improvement in credit quality, primarily delinquencies. (b) Other changes, net for the year ended December 31, 2018 include the impact of changes in expectations of cash flows, which may vary from period to period due to the impact of modifications and changes to prepayment assumptions, as well as the impact of changes in interest rates on variable rate loans. The composition of gross loans outstanding, net of undisbursed amounts, by rate type is as follows: At December 31, 2018 2017 (Dollars in thousands) Variable rate loans $ 942,348 37.33 % 807,748 34.82 % Fixed rate loans 1,581,988 62.67 % 1,511,780 65.18 % Total gross loans outstanding $ 2,524,336 100.00 % 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: At December 31, 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 at January 1, 2018 $ 2,719 168 3,986 1,201 79 2,840 485 11,478 Provision for loan losses 905 59 1,120 (320 ) 488 (70 ) (123 ) 2,059 Charge-offs (226 ) (31 ) (86 ) (24 ) (308 ) (197 ) — (872 ) Recoveries 142 7 77 1,112 93 367 — 1,798 Balance at December 31, 2018 $ 3,540 203 5,097 1,969 352 2,940 362 14,463 At December 31, 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 at January 1, 2017 $ 2,636 197 3,344 1,132 80 2,805 494 10,688 Provision for loan losses 332 (32 ) 611 (12 ) (27 ) (84 ) (9 ) 779 Charge-offs (253 ) — — — (19 ) — — (272 ) Recoveries 4 3 31 81 45 119 — 283 Balance at December 31, 2017 $ 2,719 168 3,986 1,201 79 2,840 485 11,478 At December 31, 2016 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 at January 1, 2016 $ 2,903 151 3,402 1,138 27 2,100 420 10,141 Provision for loan losses (647 ) 46 (58 ) (82 ) 82 585 74 — Charge-offs (84 ) — — — (53 ) (127 ) — (264 ) Recoveries 464 — — 76 24 247 — 811 Balance at December 31, 2016 $ 2,636 197 3,344 1,132 80 2,805 494 10,688 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 December 31, 2018: Allowance for loan losses ending balances: Individually evaluated for impairment $ 176 — 145 515 — 24 — 860 Collectively evaluated for impairment 3,364 203 4,952 1,454 352 2,916 362 13,603 $ 3,540 203 5,097 1,969 352 2,940 362 14,463 Loans receivable ending balances: Individually evaluated for impairment $ 4,687 249 5,105 1,866 31 2,853 — 14,791 Collectively evaluated for impairment 718,953 83,468 999,316 285,807 23,761 348,341 — 2,459,646 Purchased Credit-Impaired Loans 9,077 53 29,696 2,821 53 8,199 — 49,899 Total loans receivable $ 732,717 83,770 1,034,117 290,494 23,845 359,393 — 2,524,336 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 December 31, 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 and for the Year Ended December 31, 2018 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 3,083 3,241 — 1,904 46 Home equity 249 249 — 97 6 Commercial real estate 2,679 2,694 — 2,049 59 Construction and development 323 323 — 274 19 Consumer loans 31 31 — 24 1 Commercial business loans 2,697 2,698 — 983 152 9,062 9,236 — 5,331 283 With an allowance recorded: Loans secured by real estate: One-to-four family 1,604 1,665 176 1,261 43 Home equity — — — — — Commercial real estate 2,426 2,426 145 1,773 98 Construction and development 1,543 1,543 515 1,241 — Consumer loans — — — — — Commercial business loans 156 156 24 161 9 5,729 5,790 860 4,436 150 Total: Loans secured by real estate: One-to-four family 4,687 4,906 176 3,165 89 Home equity 249 249 — 97 6 Commercial real estate 5,105 5,120 145 3,822 157 Construction and development 1,866 1,866 515 1,515 19 Consumer loans 31 31 — 24 1 Commercial business loans 2,853 2,854 24 1,144 162 $ 14,791 15,026 860 9,767 434 At and for the Year Ended December 31, 2017 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 2,725 2,846 — 2,134 80 Home equity — — — — — Commercial real estate 3,370 3,370 — 3,355 111 Construction and development 318 318 — 202 17 Consumer loans 26 26 — 18 1 Commercial business loans 113 114 — 41 4 6,552 6,674 — 5,750 213 With an allowance recorded: Loans secured by real estate: One-to-four family 710 710 64 650 22 Home equity 108 108 29 108 — Commercial real estate 1,441 1,441 — 1,466 82 Construction and development — — — — — Consumer loans — — — — — Commercial business loans 172 172 16 188 10 2,431 2,431 109 2,412 114 Total: Loans secured by real estate: One-to-four family 3,435 3,556 64 2,784 102 Home equity 108 108 29 108 — Commercial real estate 4,811 4,811 — 4,821 193 Construction and development 318 318 — 202 17 Consumer loans 26 26 — 18 1 Commercial business loans 285 286 16 229 14 $ 8,983 9,105 109 8,162 327 At and for the Year Ended December 31, 2016 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 4,125 4,366 — 2,241 100 Home equity — — — — — Commercial real estate 4,011 4,011 — 3,896 217 Construction and development 507 507 — 496 1 Consumer loans 24 24 — 18 2 Commercial business loans 258 258 — 292 9 8,925 9,166 — 6,943 329 With an allowance recorded: Loans secured by real estate: One-to-four family 543 543 27 553 19 Home equity 108 108 29 41 2 Commercial real estate 1,236 1,236 92 1,266 — Construction and development — — — — — Consumer loans — — — — — Commercial business loans 9 9 9 9 — 1,896 1,896 157 1,869 21 Total: Loans secured by real estate: One-to-four family 4,668 4,909 27 2,794 119 Home equity 108 108 29 41 2 Commercial real estate 5,247 5,247 92 5,162 217 Construction and development 507 507 — 496 1 Consumer loans 24 24 — 18 2 Commercial business loans 267 267 9 301 9 $ 10,821 11,062 157 8,812 350 The Company was not committed to advance additional funds in connection with impaired loans as of December 31, 2018, 2017 or 2016. 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 December 31, 2018 and 2017. At December 31, 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 $ 503 723 1,780 180 296 793 4,275 60-89 days past due 1,677 213 120 588 31 632 3,261 90 days or more past due 4,133 373 3,054 105 117 602 8,384 Total past due 6,313 1,309 4,954 873 444 2,027 15,920 Current 726,404 82,461 1,029,163 289,621 23,401 357,366 2,508,416 Total loans receivable $ 732,717 83,770 1,034,117 290,494 23,845 359,393 2,524,336 At December 31, 2018 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 $ 378 720 1,037 172 296 793 3,396 60-89 days past due 1,313 213 120 559 31 632 2,868 90 days or more past due 3,686 373 2,895 106 117 602 7,779 Total past due 5,377 1,306 4,052 837 444 2,027 14,043 Current 718,264 82,411 1,000,368 286,836 23,348 349,167 2,460,394 Total loans receivable $ 723,641 83,717 1,004,420 287,673 23,792 351,194 2,474,437 At December 31, 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) 30-59 days past due $ 126 3 743 7 — — 879 60-89 days past due 364 — — 30 — — 394 90 days or more past due 447 — 158 — — — 605 Total past due 937 3 901 37 — — 1,878 Current 8,140 50 28,795 2,784 53 8,199 48,021 Total loans receivable $ 9,077 53 29,696 2,821 53 8,199 49,899 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 Nonacquired 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 non-PCI loans receivable, by portfolio segment, on nonaccrual at December 31, 2018 and 2017. At December 31, 2018 2017 Loans secured by real estate: (In thousands) One-to-four family $ 4,471 1,927 Home equity 454 108 Commercial real estate 3,663 1,540 Construction and development 1,675 51 Consumer loans 107 22 Commercial business loans 1,351 313 $ 11,721 3,961 There was one non-PCI loan past due 90 days and still accruing for $20,000 at December 31, 2018 and no non-PCI loans past due 90 days or more and still accruing at December 31, 2017. 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: Nonperforming: Performing: The following is a schedule of the credit quality of loans receivable, by portfolio segment, as of December 31, 2018 and 2017. At December 31, 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 $ 727,921 83,382 1,016,064 287,559 23,613 353,742 2,492,281 Special Mention 417 — 9,914 534 103 2,166 13,134 Substandard 4,379 388 8,139 2,401 129 3,485 18,921 Total loans receivable $ 732,717 83,770 1,034,117 290,494 23,845 359,393 2,524,336 Performing $ 727,799 83,316 1,030,296 288,819 23,718 358,042 2,511,990 Nonperforming: 90 days past due still accruing 447 — 158 — 20 — 625 Nonaccrual 4,471 454 3,663 1,675 107 1,351 11,721 Total nonperforming 4,918 454 3,821 1,675 127 1,351 12,346 Total loans receivable $ 732,717 83,770 1,034,117 290,494 23,845 359,393 2,524,336 At December 31, 2018 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 $ 720,177 83,336 995,319 285,927 23,571 346,487 2,454,817 Special Mention — — 5,524 71 103 1,378 7,076 Substandard 3,464 381 3,577 1,675 118 3,329 12,544 Total loans receivable $ 723,641 83,717 1,004,420 287,673 23,792 351,194 2,474,437 Performing $ 719,170 83,263 1,000,757 285,998 23,665 349,843 2,462,696 Nonperforming: 90 days past due still accruing — — — — 20 — 20 Nonaccrual 4,471 454 3,663 1,675 107 1,351 11,721 Total nonperforming 4,471 454 3,663 1,675 127 1,351 11,741 Total loans receivable $ 723,641 83,717 1,004,420 287,673 23,792 351,194 2,474,437 At December 31, 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 $ 7,745 45 20,745 1,632 42 7,255 37,464 Special Mention 418 — 4,390 463 — 787 6,058 Substandard 914 8 4,561 726 11 157 6,377 Total loans receivable $ 9,077 53 29,696 2,821 53 8,199 49,899 Performing $ 8,630 53 29,538 2,821 53 8,199 49,294 Nonperforming: 90 days past due still accruing 447 — 158 — — — 605 Nonaccrual — — — — — — — Total nonperforming 447 — 158 — — — 605 Total loans receivable $ 9,077 53 29,696 2,821 53 8,199 49,899 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 Nonacquired 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 Activity in loans to officers, directors and other related parties for the years ended December 31, 2018 and 2017 is summarized as follows: At December 31, 2018 2017 (In thousands) Balance at beginning of year $ 12,902 14,034 New loans 16,363 11,066 Repayments (11,574 ) (12,198 ) Balance at end of year $ 17,691 12,902 In management’s opinion, related party loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with an unrelated person and generally do not involve more than the normal risk of collectability. Loans serviced for the benefit of others under loan participation arrangements amounted to $37.1 million and $41.1 million at December 31, 2018 and 2017, respectively. Troubled Debt Restructurings At December 31, 2018, there were $6.4 million in loans designated as troubled debt restructurings of which $3.3 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 commercial real estate loan and one construction and development loan designated as a troubled debt restructuring during the year ended December 31, 2018. All loans were designated as a troubled debt restructuring due to an interest rate change. The pre-modification and post-modification recorded investment were $1.7 million. There were two commercial real estate and one residential real estate loans designated as a troubled debt restructuring during the year ended December 31, 2017. All loans were designated as a troubled debt restructuring due to a change in payment structure. The pre-modification and post-modification recorded investment were $0.8 million. No loans previously restructured in the twelve months prior to December 31, 2018 and 2017 went into default during the period ended December 31, 2018 and 2017. |
PREMISES AND EQUIPMENT, NET
PREMISES AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT, NET | NOTE 7 - PREMISES AND EQUIPMENT, NET Premises and equipment, net at December 31, 2018 and 2017 consists of the following: At December 31, 2018 2017 (In thousands) Land $ 15,093 15,093 Buildings 34,213 34,217 Furniture, fixtures and equipment 29,674 24,490 Construction in process 638 2,216 Total premises and equipment 79,618 76,016 Less: accumulated depreciation (18,752 ) (14,609 ) Premises and equipment, net $ 60,866 61,407 Depreciation expense included in operating expenses for the years ended December 31, 2018, 2017, and 2016 amounted to $4.2 million, $2.8 million and $2.0 million, respectively. There was no interest capitalized during fiscal year 2018 or 2017. |
REAL ESTATE ACQUIRED THROUGH FO
REAL ESTATE ACQUIRED THROUGH FORECLOSURE | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
REAL ESTATE ACQUIRED THROUGH FORECLOSURE | NOTE 8 – REAL ESTATE ACQUIRED THROUGH FORECLOSURE The following presents summarized activity in real estate acquired through foreclosure for the periods ended December 31, 2018 and December 31, 2017: At December 31, 2018 2017 (In thousands) Balance at beginning of year $ 3,106 1,179 Additions 285 2,554 Sales (1,731 ) (627 ) Write downs (126 ) — Balance at end of year $ 1,534 3,106 A summary of the composition of real estate acquired through foreclosure follows: At December 31, 2018 2017 (In thousands) Real estate loans: One-to-four family $ 204 709 Construction and development 1,330 2,397 $ 1,534 3,106 As of December 31, 2018, the Company had approximately $4.5 million of loans in the process of foreclosure. |
MORTGAGE SERVICING RIGHTS
MORTGAGE SERVICING RIGHTS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
MORTGAGE SERVICING RIGHTS | NOTE 9 – MORTGAGE SERVICING RIGHTS Mortgage loans serviced for others are not included in the accompanying Consolidated Balance Sheets. The value of mortgage servicing rights (“MSRs”) is included on the Company’s Consolidated Balance Sheets. The unpaid principal balances of loans serviced for others were $4.0 billion and $2.9 billion, respectively, at December 31, 2018 and 2017. The economic estimated fair values of mortgage servicing rights were $40.9 million and $26.3 million, respectively, at December 31, 2018 and 2017. The estimated fair value of servicing rights at December 31, 2018 was determined using a net servicing fee of 0.25%, weighted average discount rates ranging from 12.0% to 13.0%, weighted average constant prepayment rates (“CPR”) ranging from 6.44% to 7.08%, depending upon the stratification of the specific servicing right, and a weighted average delinquency rate of 2.34% as determined by a third party. The estimated fair value of servicing rights at December 31, 2017 was determined using a net servicing fee of 0.25%, weighted average discount rates ranging from 11.50% to 13.12%, weighted average constant prepayment rates (“CPR”) ranging from 8.11% to 9.46%, depending upon the stratification of the specific servicing right, and a weighted average delinquency rate of 2.43% as determined by a third party. The following summarizes the activity in mortgage servicing rights, along with the aggregate activity in the related valuation allowances, for the years ended December 31, 2018 and 2017: December 31, 2018 2017 (In thousands) M SR beginning balance $ 21,003 15,032 Amount capitalized 6,283 6,061 Amount acquired 9,853 2,876 Amount amortized (4,206 ) (2,966 ) M SR ending balance $ 32,933 21,003 There was no allowance for loss in fair value in mortgage servicing rights for the years ended December 31, 2018 and 2017. Estimated amortization expense is presented below for the following subsequent years ended (in thousands): Year 1 $ 5,624 Year 2 5,428 Year 3 5,333 Year 4 5,165 Year 5 4,620 After Year 5 6,763 Total $ 32,933 The estimated amortization expense is based on current information regarding future loan payments and prepayments. Amortization expense could change in future periods based on changes in the volume of prepayments and economic factors. At December 31, 2018 and 2017, servicing related impound funds of approximately $41.5 million, and $34.1 million, respectively, representing both principal and interest due investors and escrows received from borrowers, are on deposit in custodial accounts and are included in noninterest-bearing deposits in the accompanying financial statements. At December 31, 2018 and 2017, the Company had a blanket bond coverage of $10 million and an errors and omissions coverage of $10 million. |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
DEPOSITS | NOTE 10 - DEPOSITS Deposits outstanding by type of account at December 31, 2018 and 2017 are summarized as follows: At December 31, 2018 2017 (In thousands) Noninterest-bearing demand accounts $ 547,022 525,615 Interest-bearing demand accounts 566,527 551,308 Savings accounts 192,322 213,142 Money market accounts 431,246 452,734 Certificates of deposit: Less than $250,000 875,749 755,887 $250,000 or more 105,327 106,243 Total certificates of deposit 981,076 862,130 Total deposits $ 2,718,193 2,604,929 The aggregate amount of brokered certificates of deposit was $174.1 million and $99.2 million at December 31, 2018 and 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 $39.4 million and $39.1 million at December 31, 2018 and 2017, respectively. The amounts and scheduled maturities of certificates of deposit at December 31, 2018 and 2017 are as follows: At December 31, 2018 2017 (In thousands) Maturing within one year $ 684,031 493,525 Maturing one through three years 254,180 305,457 Maturing after three years 42,865 63,148 $ 981,076 862,130 |
SHORT-TERM BORROWED FUNDS
SHORT-TERM BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWED FUNDS | NOTE 11 – SHORT-TERM BORROWED FUNDS Short-term borrowed funds at December 31, 2018 and 2017 are summarized as follows: At December 31, 2018 2017 Stated Stated Balance Interest Rate Balance Interest Rate (Dollars in thousands) Short-term FHLB advances $ 405,500 1.05%-2.78% 340,500 0.87%-2.71% Total short-term borrowed funds $ 405,500 340,500 Lines of credit with the FHLB are based upon FHLB-approved percentages of Bank assets, but must be supported by appropriate collateral to be available. The Company has pledged first lien residential mortgage, second lien residential mortgage, residential home equity line of credit, commercial mortgage and multifamily mortgage portfolios under blanket lien agreements. At December 31, 2018 the Company had FHLB advances of $432.5 million outstanding with excess collateral pledged to the FHLB during those periods that would support additional borrowings of approximately $305.1 million. At December 31, 2017, the Company had total FHLB advances of $380.5 million outstanding with excess collateral pledged to the FHLB during those periods that would support additional borrowings of approximately $328.6 million. No securities were pledged for these advances at December 31, 2017. Lines of credit with the Federal Reserve Bank of Richmond (“FRB”) are based on collateral pledged. At December 31, 2018, the Company had lines available with the FRB for $226.3 million based on loans pledged to FRB. The Company has pledged approximately $378.8 million of certain non-mortgage commercial, acquisition and development, and lot loan portfolios under blanket lien agreements to the FRB as of December 31, 2018. At December 31, 2017, the Company had lines available with the FRB for $199.4 million. The Company has pledged approximately $334.5 million of certain non-mortgage commercial acquisition and development, and lot loan portfolios such as blanket lien agreement to the FRB as of December 31, 2017. At December 31, 2018 and 2017, the Company had no FRB advances outstanding. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | NOTE 12 – LONG-TERM DEBT Long-term debt at December 31, 2018 and 2017 are summarized as follows: December 31, 2018 Stated Balance Interest Rate (Dollars in thousands) Long-term FHLB advances, due through 2020 $ 27,000 1.72%-2.60 % Subordinated debentures, due 2032 through 2037 32,436 4.25%-5.75 % Total long-term debt $ 59,436 December 31, 2017 Stated Balance Interest Rate (Dollars in thousands) Long-term FHLB advances, due 2018 through 2019 $ 40,000 1.05%-1.98 % Subordinated debentures, due 2032 through 2037 32,259 3.11%-4.75 % Total long-term debt $ 72,259 The following table presents the scheduled repayments of long-term debt as of December 31, 2018. 2019 $ — 2020 27,000 2021 — 2022 — 2023 — Thereafter 32,436 Total $ 59,436 As of December 31, 2018, there were no principal amounts callable by the FHLB on advances. At December 31, 2018, statutory business trusts (“Trusts”) created by the Company or acquired had outstanding trust preferred securities with an aggregate par value of $36.0 million, with a fair value of $34.9 million. The trust preferred securities have stated floating interest rates ranging from 4.25% to 5.76% at December 31, 2018 and maturities ranging from December 31, 2032 to January 30, 2037. 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. The trust preferred securities, the assets of the Trusts and the common securities issued by the Trusts are redeemable in whole or in part beginning on or after December 31, 2008, or at any time in whole but not in part from the date of issuance on the occurrence of certain events. The obligations of the Company with respect to the issuance of the trust preferred securities constitutes a full and unconditional guarantee by the Company of the Trusts’ obligations with respect to the trust preferred securities. Subject to certain exceptions and limitations, the Company may elect from time to time to defer subordinated debenture interest payments, which would result in a deferral of distribution payments on the related trust preferred securities. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 13 - INCOME TAXES The 2017 Tax and Cuts Jobs Act (“2017 Tax Act”) was signed into law by the President on December 22, 2017. The 2017 Tax Act reduced the corporate Federal tax rate from 35% to 21% effective January 1, 2018. Income tax expense for 2017 includes a revaluation of net deferred tax assets in the amount of $239,000, recorded as a result of the enactment of the 2017 Tax Act. Income tax expense for the years ended December 31, 2018 and 2017 consists of the following: For the Years Ended December 31, 2018 2017 2016 Current income tax expense (In thousands) Federal $ 12,114 3,764 6,312 State 2,185 971 736 14,299 4,735 7,048 Deferred income tax expense (benefit) Federal (1,219 ) 7,792 770 State (311 ) 195 30 Deferred tax revaluation related to the 2017 Tax Act — 239 — (1,530 ) 8,226 800 Total income tax expense $ 12,769 12,961 7,848 A reconciliation from expected Federal tax expense to actual income tax expense for the years ended December 31, 2018 and 2017 using the base federal tax rates of 21% and 35%, respectively follows: For the Years Ended December 31, 2018 2017 2016 (In thousands) Computed federal income taxes $ 13,112 14,534 8,896 State income tax, net of federal benefit 1,674 758 424 Tax exempt interest (1,378 ) (1,667 ) (778 ) Stock based compensation (331 ) (1,514 ) (471 ) Deferred tax revaluation related to the 2017 Tax Act — 239 — Other, net (308 ) 611 (223 ) Total income tax expense $ 12,769 12,961 7,848 The FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions, including income tax consequences. In addition to other changes, the guidance changes the accounting for excess tax benefits and tax deficiencies from generally being recognized in additional paid-in capital to recognition as income tax expense or benefit in the period they occur. The Company early adopted the new guidance in the second quarter of 2016. A tax benefit of $0.3 million, $1.5 million and $0.5 million was recorded during the years ended December 31, 2018, 2017 and 2016 as a result of share awards vesting/exercised. The following is a summary of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2018 and 2017: At December 31, 2018 2017 Deferred tax assets: (In thousands) Loan loss reserve $ 8,808 10,251 Unrealized loss on available-for-sale securities 109 — Net operating loss and credit carryforwards 2,943 3,975 Stock based compensation 808 483 Other 823 915 13,491 15,624 Valuation allowance (618 ) (958 ) Total gross deferred tax assets 12,873 14,666 Deferred tax liabilities: Depreciation (3,393 ) (2,905 ) Core deposit intangible (2,932 ) (3,591 ) Goodwill (240 ) (181 ) Transaction costs — (2,411 ) Unrealized gain on securities available-for-sale — (1,551 ) Unrealized gain on interest rate swap — (146 ) Other (522 ) (1,445 ) Total gross deferred tax liabilities (7,087 ) (12,230 ) Deferred tax assets, net $ 5,786 2,436 Deferred tax assets are recognized for future deductible amounts resulting from differences in the financial statement and tax bases of assets and liabilities and operating loss carry forwards. A valuation allowance is then established to reduce that deferred tax asset to the level that it is “more likely than not” that the tax benefit will be realized. The realization of a deferred tax benefit by the Company depends upon having sufficient taxable income of an appropriate character in the future periods. A portion of the annual change in the net deferred income tax asset relates to unrealized gains and losses on debt and equity securities and interest rate swaps. The deferred income tax benefit related to the unrealized gains and losses on debt and equity securities and interest rate swaps of $1.8 million and deferred income tax expense of $3.4 million for the years ended December 31, 2018 and 2017, respectively, was recorded directly to stockholders’ equity as a component of accumulated other comprehensive income. A portion of the change in the 2017 deferred tax balance related to the tax rate change that occurred as a result of the Tax Cuts and Jobs Act of 2017. The Company recorded a deferred tax expense related to the new tax law of $0.8 million during 2017. The balance of the change in the net deferred tax asset of $1.5 million of deferred tax benefit and $7.7 million of deferred tax expense for the years ended December 31, 2018 and 2017 are reflected in the Consolidated Statement of Operations. The valuation allowances relate to state net operating loss and tax credit carry-forwards. It is management’s belief that the realization of the remaining net deferred tax assets is more likely than not. Tax returns for 2015 and subsequent years are subject to examination by taxing authorities. The Company has analyzed the tax positions taken or expected to be taken on its tax returns and concluded it has no liability related to uncertain tax positions in accordance with ASC Topic 740. The Company has federal net operating losses of $2.5 million and $2.9 million at December 31, 2018 and 2017, respectively. These net operating losses expire at various times beginning in the year of 2028. The Company has state net operating losses of $10.4 million and $16.8 million at December 31, 2018 and 2017, respectively. These net operating losses expire at various times beginning in the year 2028. The Company has AMT credits of $1.4 million and $2.1 million at December 31, 2018 and 2017, respectively. As a result of the First South Bancorp, Inc. and Greer Bancshares, Inc. ownership changes in 2017 and the Congaree Bancshares, Inc. ownership change in 2016, Section 382 of the Internal Revenue Code places an annual limitation on the amount of federal net operating loss carry-forwards and credit carry-forwards which the Company may utilize. The Company expects all Section 382 limited carry-forwards to be realized within the applicable carryforward period. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 14 - COMMITMENTS AND CONTINGENCIES The Company has entered into agreements to lease certain office facilities under non-cancellable operating lease agreements expiring on various dates through the year 2056. Some of these leases provide for the payment of property taxes and insurance and contain various renewal options. The exercise of the renewal options are dependent on future events. Accordingly, the following summary does not reflect possible additional payments due if renewal options are exercised. Future minimum lease payments (in thousands), by year and in the aggregate, under non-cancellable operating leases with initial or remaining terms in excess of one year are as follows: Year 1 $ 2,537 Year 2 2,332 Year 3 1,950 Year 4 1,868 Year 5 1,738 After Year 5 14,165 Total $ 24,590 The Company’s rental expense for its office facilities for the years ended December 31, 2018, 2017, and 2016 totaled $2.4 million, $1.4 million and $1.1 million, respectively. In the course of ordinary business, the Company is, from time to time, named a party to legal actions and proceedings, primarily related to the collection of loans and foreclosed assets. In accordance with generally accepted accounting principles, the Company establishes reserves for litigation and regulatory matters when those matters present loss contingencies that are both probable and estimable. When loss contingencies are not both probable and estimable, the Company does not establish reserves. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 15 – STOCK-BASED COMPENSATION Compensation cost is recognized for stock options and restricted stock awards issued to employees. Compensation cost is measured as the fair value of these awards on their date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used as the fair value of restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period for stock option awards and as the restriction period for restricted stock awards. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company has adopted a 2013 Equity Incentive Plan under which an aggregate of 1,200,000 shares of common stock have been reserved for issuance by the Company. The plan provides for the grant of stock options, restricted stock and restricted stock unit awards to our officers, employees, directors, advisors, and consultants. The options are granted at an exercise price at least equal to the fair value of the common stock at the date of grant and expire ten years from the date of the grant. The vesting period for both option grants, restricted stock grants, and restricted stock units will vary based on the timing of the grant. Awards that expire without issuance, forfeitures, shares used as partial payment to the Company for the purchase price of the award, or an award settled in cash, including for payroll taxes, are added back to the shares available to be awarded under the Plan. As of December 31, 2018 a total of 264,771shares were remaining in the plan to be issued. In connection with the merger of First South, the Company assumed the obligations of First South under the First South Bancorp, Inc. 2008 Equity Incentive Plan (the “2008 Plan”) and the First South Bancorp, Inc. 1997 Stock Option Plan (the “1997 Plan”). At December 31, 2018, the 2008 Plan had 36,461 stock options outstanding and there are no stock options outstanding for the 1997 Plan. There are no additional shares available to be awarded under the 2008 Plan or the 1997 Plan. All options under the 2008 Plan and 1997 Plan were fully vested at the time of the merger. The expense recognition of employee stock option, restricted stock awards, and restricted stock units resulted in net expense of approximately $2.7 million, $1.7 million, and $1.3 million during the twelve months ended December 31, 2018, 2017 and 2016, respectively. Information regarding the 2018 grants as well as other relevant disclosure related to the share-based compensation plans of the Company is presented below. Stock Options Activity in the Company’s stock option plans is summarized in the following table. All information has been retroactively adjusted for stock splits. At and For the Years Ended December 31, 2018 2017 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding at beginning of year 312,382 $ 12.01 238,180 $ 8.69 Granted 1,000 40.91 22,990 30.90 Acquired in a merger — — 56,337 20.73 Exercised (7,596 ) 18.71 (600 ) 16.19 Forfeited or expired (8,355 ) 40.79 (4,525 ) 41.26 Outstanding at end of year 297,431 $ 11.12 312,382 $ 12.01 Options exercisable at end of year 263,114 $ 9.48 236,911 $ 9.55 The aggregate intrinsic value of 297,431 and 312,382 stock options outstanding at December 31, 2018 and 2017 was $5.5 million and $7.9 million, respectively. The aggregate intrinsic value of 263,116 and 236,911 stock options exercisable at December 31, 2018 and 2017 was $5.3 million and $6.6 million, respectively. Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock option. Information pertaining to options outstanding at December 31, 2018 and 2017, is as follows: At December 31, 2018 Options Outstanding Options Exercisable Weighted Avg. Weighted Weighted Number Remaining Years Average Number Average Exercise Prices Outstanding Contractual Life Exercise Price Outstanding Exercise Price $4.17 124,930 4.3 $ 4.17 124,930 $ 4.17 $8.14 10,127 3.2 8.14 10,127 8.14 $8.54 6,576 5.3 8.54 6,576 8.54 $9.97 - $10.66 7,596 2.2 10.52 7,596 10.52 $11.58 - $12.88 58,796 6.0 11.66 58,796 11.66 $15.82 - $16.83 54,781 7.0 16.56 36,791 16.54 $20.97 - $21.54 10,635 0.6 21.21 10,635 21.21 $30.90 22,990 8.1 30.90 7,663 30.90 $34.10 - $38.03 — — — — — $40.91 1,000 2.2 40.91 — — $42.28 - $42.56 — — — — — 297,431 5.2 $ 11.12 263,114 $ 9.48 At December 31, 2017 Options Outstanding Options Exercisable Weighted Avg. Weighted Weighted Number Remaining Years Average Number Average Exercise Prices Outstanding Contractual Life Exercise Price Outstanding Exercise Price $4.17 124,930 5.3 $ 4.17 124,930 $ 4.17 $8.14 10,127 4.2 8.14 10,127 8.14 $8.54 6,576 6.3 8.54 6,576 8.54 $9.97 - $11.02 12,660 3.8 10.72 12,660 10.72 $11.58 - $12.88 58,796 6.7 11.65 40,295 11.69 $15.82 - $16.83 54,781 8.0 16.56 20,801 16.49 $20.97 - $21.54 10,635 1.6 21.21 10,635 21.21 $30.90 22,990 9.1 30.90 — — $34.10 - $38.03 5,570 0.6 36.24 5,570 36.24 $42.28 - $42.56 5,317 0.1 42.36 5,317 42.36 312,382 5.9 $ 12.01 236,911 $ 9.55 The fair value of options is estimated at the date of grant using the Black-Scholes option pricing model and expensed over the options’ vesting period. The following weighted-average assumptions were used in valuing option issued during 2018 and 2017: 2018 2017 Dividend yield 0.5 % 1 % Expected life 6 years 6 years Expected volatility 44 % 32 % Risk-free interest rate 2.76 % 2.17 % As of December 31, 2018, there was $103,000 of total unrecognized compensation cost related to non-vested stock option grants under the plans. The cost is expected to be recognized over a weighted-average period of 1.4 years as of December 31, 2018. Restricted Stock Grants The Company from time-to-time also grants shares of restricted stock to key employees and non-employee directors. These awards help align the interests of these employees and directors with the interests of the stockholders of the Company by providing economic value directly related to increases in the value of the Company’s stock. These awards typically hold service requirements over various vesting periods. The value of the stock awarded is established as the fair market value of the stock at the time of the grant. The Company recognizes expense, equal to the total value of such awards, ratably over the vesting period of the stock grants. All restricted stock agreements are conditioned upon continued employment. Termination of employment prior to a vesting date, as described below, would terminate any interest in non-vested shares. Prior to vesting of the shares, as long as employed by the Company, the key employees and non-employee directors will have the right to vote such shares and to receive dividends paid with respect to such shares. All restricted shares will fully vest in the event of change in control of the Company. Nonvested restricted stock for the year ended December 31, 2018 and 2017 is summarized in the following table. At and For the Years Ended December 31, 2018 2017 Weighted Weighted Average Average Grant- Date Grant- Date Restricted stock grants Shares Fair Value Shares Fair Value Nonvested at January 1 134,302 $ 8.87 211,907 $ 7.55 Granted 47,039 39.32 93,556 33.67 Vested (52,925 ) 20.85 (167,461 ) 20.61 Forfeited (10,450 ) 37.09 (3,700 ) 28.93 Nonvested at December 31 117,966 $ 13.14 134,302 $ 28.40 The vesting schedule of these shares as of December 31, 2018 is as follows: Shares 2019 36,983 2020 58,349 2021 17,221 2022 5,413 2023 — Thereafter — 117,966 As of December 31, 2018, there was $2.3 million of total unrecognized compensation cost related to nonvested restricted stock granted under the plans. The cost is expected to be recognized over a weighted-average period of 2.0 years as of December 31, 2018. Restricted Stock Units The Company from time-to-time also grants performance restricted stock units (“RSUs”) to key employees. These awards help align the interests of these employees with the interests of the shareholders of the Company by providing economic value directly related to the performance of the Company. Performance RSU grants contain a two year performance period. The Company communicates the specific threshold, target, and maximum performance RSU awards and performance targets to the applicable key employees at the beginning of a performance period. Dividends are not paid in respect to the awards and the holder does not have the right to vote the shares during the performance period. The value of the RSUs awarded is established as the fair market value of the stock at the time of the grant. The Company recognizes expenses on a straight-line basis typically over the period the performance target is to be achieved. Nonvested RSUs for the years ended December 31, 2018 and 2017 is summarized in the following table. At and For the Years Ended December 31, 2018 December 31, 2017 Weighted Weighted Average Average Grant- Date Grant- Date Restricted stock units Shares Fair Value Shares Fair Value Nonvested at January 1 17,273 $ 30.90 20,170 $ 16.31 Granted 22,112 38.77 18,773 30.90 Vested (17,273 ) 30.90 (18,870 ) 16.31 Forfeited (600 ) 38.77 (2,800 ) 24.13 Nonvested at December 31 21,512 $ 38.77 17,273 $ 30.90 As of December 31, 2018, there was $429,000 of total unrecognized compensation cost related to nonvested RSUs granted under the plan. This cost is expected to be recognized over a weighted-average period of 1.0 years as of December 31, 2018. |
ESTIMATED FAIR VALUE OF FINANCI
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 16 – 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. Assets and liabilities measured at fair value on a recurring basis are as follows as of December 31, 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) December 31, 2018 Available-for-sale investment securities: Municipal securities $ — 213,714 — US government agencies — 25,277 — Collateralized loan obligations — 230,699 — Corporate securities — 6,960 — Mortgage-backed securities: Agency — 197,520 — Non-agency — 157,531 — Trust preferred securities — 11,100 — Loans held for sale — 16,972 — Derivative assets: Cash flow hedges: Interest rate swaps 1,232 — — Non-hedging derivatives: Interest rate swaps 1,198 — — Mortgage loan interest rate lock commitments — 1,199 — Mortgage loan forward sales commitments — 403 — Derivative liabilities: Non-hedging derivatives: Interest rate swaps 937 — — Mortgage-backed securities forward sales commitments — 295 — 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 — 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 December 31, 2018 the Company’s investment securities available-for-sale are recurring Level 2. During the year ended December 31, 2018, transfers from Level 3 to Level 2 included $11.5 million of trust preferred securities driven by an increase in the observability of certain valuation inputs. All transfers are assumed to occur at the end of the quarterly reporting period in which they occur. 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 December 31, 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) December 31, 2018 Impaired loans: Loans secured by real estate: One-to-four family $ — — 4,511 Home equity — — 249 Commercial real estate — — 3,825 Construction and development — — 1,351 Consumer loans — — 31 Commercial business loans — — 2,829 Real estate owned: One-to-four family — — 204 Construction and development — — 1,330 Mortgage servicing rights — — 40,880 Total $ — — 55,210 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 December 31, 2018 and December 31, 2017, the significant unobservable inputs used in the fair value measurements were as follows: December 31, 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 comparable properties sales commissions and other holding costs Real estate owned Appraisal Value/ Appraisals and or sales of Appraisals discounted 10% to 20% for Comparison Sales comparable properties sales commissions and other holding costs Mortgage Servicing Rights Discounted cash flows Comparable sales Weighted average discount rates averaging 12% - 13% in each period presented Weighted average prepayment rates averaging 6% - 7% in 2018 Weighted average prepayment rates averaging 8% - 9% in 2017 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 December 31, 2018 and December 31, 2017 are as follows: At December 31, 2018 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 28,857 28,857 28,857 — — Interest-bearing cash 33,276 33,276 33,276 — — Securities available-for-sale 842,801 842,801 — 842,801 — Federal Home Loan Bank stock 21,696 21,696 — — 21,696 Other investments 3,450 3,450 — — 3,450 Derivative assets 4,032 4,032 2,430 1,602 — Loans held for sale 16,972 16,972 — 16,972 — Loans receivable, net 2,509,873 2,506,384 — — 2,506,384 Accrued interest receivable 13,494 13,494 — 13,494 — Real estate acquired through foreclosure 1,534 1,534 — — 1,534 Mortgage servicing rights 32,933 40,880 — — 40,880 Financial liabilities: Deposits 2,718,193 2,721,885 — 2,721,885 — Short-term borrowed funds 405,500 405,532 — 405,532 — Long-term debt 59,436 61,853 — 61,853 — Derivative liabilities 1,232 1,232 937 295 — Drafts outstanding 8,129 8,129 — 8,129 — Advances from borrowers for insurance and taxes 4,100 4,100 — 4,100 — Accrued interest payable 1,591 1,591 — 1,591 — Dividends payable to stockholders 1,576 1,576 — 1,576 — 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 December 31, 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 $ 379,170 — 422,065 — Standby letters of credit 13,797 — 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 were 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 December 31, 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, 2018. 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. |
OFF-BALANCE SHEET FINANCIAL INS
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS AND CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2018 | |
Notes to Financial Statements | |
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS AND CONCENTRATIONS OF CREDIT RISK | NOTE 17 - OFF-BALANCE SHEET FINANCIAL INSTRUMENTS AND CONCENTRATIONS OF CREDIT RISK 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. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments as for on-balance sheet instruments. At December 31, 2018 and 2017, the Company had commitments to extend credit in the amount of $379.2 million and $422.1 million, respectively. At December 31, 2018 and 2017, the Company had standby letters of credit in the amount of $13.8 million and $4.4 million, respectively. Standby letters of credit obligate the Company to meet certain financial obligations of its customers, if, under the contractual terms of the agreement, the customers are unable to do so. Payment is only guaranteed under these letters of credit upon the borrower’s failure to perform its obligations to the beneficiary. The Company can seek recovery of the amounts paid from the borrower and the letters of credit are generally not collateralized. Commitments under standby letters of credit are usually one year or less. At December 31, 2018, the Company has recorded no liability for the current carrying amount of the obligation to perform as a guarantor; as such amounts are not considered material. The maximum potential of undiscounted future payments related to standby letters of credit at December 31, 2018 was approximately $3.8 million. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require a payment of a fee. Since commitments may expire without being drawn upon, the total commitments do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. Collateral held varies, but may include inventory, property and equipment, residential real estate and income producing commercial properties. The Company’s primary uses of derivative instruments are related to the mortgage banking activities. As such, 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 Company’s derivative positions are presented with discussion in Note 5 - Derivatives. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 18 - EMPLOYEE BENEFIT PLANS The Company maintains a 401(k) plan that covers substantially all employees of CresCom Bank, Carolina Services (“CFC Participants”) and Crescent Mortgage (“CMC Participants”). Participants may contribute up to the maximum allowed by the regulation. During fiscal 2018 and 2017, the Company matched 75% of an employee’s contribution up to 6.0% of the participant’s compensation of the CFC Participants and the CMC Participants. For the years ended December 31, 2018, 2017 and 2016, the Company made matching contributions of $1.0 million, $0.8 million and $0.6 million, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share | |
EARNINGS PER SHARE | NOTE 19 - EARNINGS PER COMMON SHARE Basic earnings per common share are calculated by dividing net income by the weighted average number of common shares outstanding during the period. Basic earnings per common share exclude the effect of nonvested restricted stock. Diluted earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding plus the weighted average number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Diluted earnings per common share include the effects of outstanding stock options and restricted stock issued by the Company, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options were exercised and that the proceeds from such exercises and vesting were used to acquire shares of common stock at the average market price during the reporting period. All share, earnings per share, and per share data have been retroactively adjusted to reflect stock splits for all periods presented in accordance with generally accepted accounting principles. The following is a summary of the reconciliation of average shares outstanding for the years ended December 31, 2018, 2017, and 2016: December 31, 2018 2017 2016 Basic Diluted Basic Diluted Basic Diluted Weighted average shares outstanding 21,756,595 21,756,595 16,317,501 16,317,501 12,080,128 12,080,128 Effect of dilutive securities — 216,262 — 232,856 — 272,118 Average shares outstanding 21,756,595 21,972,857 16,317,501 16,550,357 12,080,128 12,352,246 The average market price used in calculating the dilutive securities under the treasury stock method for the years ended December 31, 2018, 2017, and 2016 was $38.95, $32.85, and $20.38, respectively. For the years ended December 31, 2018, 2017 and 2016, the Company excluded 1,000, 37,802 and 51,170 option shares, respectively, from the calculation of diluted earnings per share during the period because the exercise prices were greater than the average market price of the common shares, and therefore were deemed not to be dilutive. The following is a summary of the reconciliation of shares issued and outstanding and unvested restricted stock awards as of December 31, 2018, 2017, and 2016 used for computing book value and tangible book value per share: As of December 31, 2018 2017 2016 Issued and outstanding shares 22,387,009 21,022,202 12,548,328 Less nonvested restricted stock awards (117,966 ) (134,302 ) (211,907 ) Period end shares used for tangible book value 22,269,043 20,887,900 12,336,421 |
CAPITAL REQUIREMENTS AND OTHER
CAPITAL REQUIREMENTS AND OTHER RESTRICTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
CAPITAL REQUIREMENTS AND OTHER RESTRICTIONS | NOTE 20 - CAPITAL REQUIREMENTS AND OTHER RESTRICTIONS The Company and the Bank are subject to various federal and state regulatory requirements, including regulatory capital requirements. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions that if undertaken could have a direct material effect on the Company’s and the Bank’s financial statements. Effective January 2, 2015, the Company and Bank became subject to the regulatory risk-based capital rules adopted by the federal banking agencies implementing Basel III. Under the new capital guidelines, applicable regulatory capital components consist of (1) common equity Tier 1 capital (common stock, including related surplus, and retained earnings, plus limited amounts of minority interest in the form of common stock, net of goodwill and other intangibles (other than mortgage servicing assets), deferred tax assets arising from net operating loss and tax credit carry forwards above certain levels, mortgage servicing rights above certain levels, gain on sale of securitization exposures and certain investments in the capital of unconsolidated financial institutions, and adjusted by unrealized gains or losses on cash flow hedges and accumulated other comprehensive income items (subject to the ability of a non-advanced approaches institution to make a one-time irrevocable election to exclude from regulatory capital most components of AOCI), (2) additional Tier 1 capital (qualifying non-cumulative perpetual preferred stock, including related surplus, plus qualifying Tier 1 minority interest and, in the case of holding companies with less than $15 billion in consolidated assets at December 31, 2009, certain grandfathered trust preferred securities and cumulative perpetual preferred stock in limited amounts, net of mortgage servicing rights, deferred tax assets related to temporary timing differences, and certain investments in financial institutions) and (3) Tier 2 capital (the allowance for loan and lease losses in an amount not exceeding 1.25% of standardized risk-weighted assets, plus qualifying preferred stock, qualifying subordinated debt and qualifying total capital minority interest, net of Tier 2 investments in financial institutions). Total Tier 1 capital, plus Tier 2 capital, constitutes total risk-based capital. The required minimum ratios are as follows: · Common equity Tier 1 capital ratio (common equity Tier 1 capital to total risk-weighted assets) of 4.5% · Tier 1 Capital Ratio (Tier 1 capital to total risk-weighted assets) of 6% · Total capital ratio (total capital to total risk-weighted assets) of 8%; and · Leverage ratio (Tier 1 capital to average total consolidated assets) of 4% The new capital guidelines also provide that all covered banking organizations must maintain a new capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonus payments to executive officers. The phase-in of the capital conservation buffer requirement began on January 1, 2016. The final regulatory capital rules also incorporate these changes in regulatory capital into the prompt corrective action framework, under which the thresholds for “adequately capitalized” banking organizations are equal to the new minimum capital requirements. Under this framework, in order to be considered “well capitalized”, insured depository institutions are required to maintain a Tier 1 leverage ratio of 5%, a common equity Tier 1 capital measure of 6.5%, a Tier 1 capital ratio of 8% and a total capital ratio of 10%. On June 11, 2018, the Company completed the sale of 1.5 million shares of its common stock. The net proceeds of the offering to the Company, after estimated expenses, were approximately $63.0 million. The actual capital amounts and ratios as well as minimum amounts for each regulatory defined category for the Company and the Bank at December 31, 2018 and 2017 are as follows: To Be Well Minimum Capital Minimum Capital Capitalized Under Required - Basel III Required - Basel III Prompt Corrective Actual Phase-In Schedule Fully Phased-In Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2018 Carolina Financial Corporation CET1 capital (to risk weighted assets) $ 431,568 15.19 % 181,094 6.375 % 198,848 7.000 % N/A N/A Tier 1 capital (to risk weighted assets) 462,888 16.29 % 223,704 7.875 % 241,459 8.500 % N/A N/A Total capital (to risk weighted assets) 477,351 16.80 % 280,518 9.875 % 298,273 10.500 % N/A N/A Tier 1 capital (to total average assets) 462,888 13.01 % 142,270 4.000 % 142,270 4.000 % N/A N/A CresCom Bank CET1 capital (to risk weighted assets) 454,181 16.00 % 180,948 6.375 % 198,688 7.000 % 184,496 6.50 % Tier 1 capital (to risk weighted assets) 454,181 16.00 % 223,524 7.875 % 241,264 8.500 % 227,072 8.00 % Total capital (to risk weighted assets) 468,644 16.51 % 280,292 9.875 % 298,032 10.500 % 283,840 10.00 % Tier 1 capital (to total average assets) 454,181 12.76 % 142,392 4.000 % 142,392 4.000 % 177,990 5.00 % To Be Well Minimum Capital Minimum Capital Capitalized Under Required - Basel III Required - Basel III Prompt Corrective Actual Phase-In Schedule Fully Phased-In Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2017 Carolina Financial Corporation CET1 capital (to risk weighted assets) $ 328,511 12.42 % 152,145 5.750 % 185,220 7.000 % N/A N/A Tier 1 capital (to risk weighted assets) 359,654 13.59 % 191,835 7.250 % 224,910 8.500 % N/A N/A Total capital (to risk weighted assets) 371,133 14.03 % 244,755 9.250 % 277,830 10.500 % N/A N/A Tier 1 capital (to total average assets) 359,654 12.38 % 116,198 4.000 % 116,198 4.000 % N/A N/A CresCom Bank CET1 capital (to risk weighted assets) 355,024 13.43 % 152,035 5.750 % 185,086 7.000 % 171,865 6.50 % Tier 1 capital (to risk weighted assets) 355,024 13.43 % 191,696 7.250 % 224,747 8.500 % 211,527 8.00 % Total capital (to risk weighted assets) 366,503 13.86 % 244,578 9.250 % 277,629 10.500 % 264,408 10.00 % Tier 1 capital (to total average assets) 355,024 12.21 % 116,312 4.000 % 116,312 4.000 % 145,390 5.00 % A South Carolina state bank may not pay dividends from capital. All dividends must be paid out of undivided profits then on hand, after deducting expenses, including reserves for losses and bad debts. Unless otherwise instructed by the South Carolina Board of Financial Institutions, the Bank is generally permitted under South Carolina state banking regulations to pay cash dividends of up to 100% of net income in any calendar year without obtaining the prior approval of the South Carolina Board of Financial Institutions. In addition, under the Federal Deposit Insurance Corporation Improvement Act, the Bank may not pay a dividend if, after paying the dividend, the Bank would be undercapitalized. The note may also prevent the payment of a dividend by the Bank if it determines that the payment would be an unsafe and unsound banking practice. |
SUPPLEMENTAL SEGMENT INFORMATIO
SUPPLEMENTAL SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SUPPLEMENTAL SEGMENT INFORMATION | NOTE 21 – SUPPLEMENTAL SEGMENT INFORMATION The Company has three reportable segments: community banking, wholesale mortgage banking (“mortgage banking”) and other. The community banking segment provides traditional banking services offered through CresCom Bank. The mortgage banking segment provides mortgage loan origination and servicing offered through Crescent Mortgage. The other segment provides managerial and operational support to the other business segments through Carolina Services and Carolina Financial. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. 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 years ended December 31, 2018, 2017, and 2016: Community Mortgage For the Year Ended December 31, 2018 Banking Banking Other Eliminations Total (In thousands) Interest income $ 159,483 1,841 56 (322 ) 161,058 Interest expense 25,227 414 2,025 (418 ) 27,248 Net interest income (expense) 134,256 1,427 (1,969 ) 96 133,810 Provision for loan losses 2,034 25 — — 2,059 Noninterest income from external customers 18,680 21,106 110 — 39,896 Intersegment noninterest income 966 99 — (1,065 ) — Noninterest expense 89,459 18,631 1,117 1 109,208 Intersegment noninterest expense — 960 6 (966 ) — Income (loss) before income taxes 62,409 3,016 (2,982 ) (4 ) 62,439 Income tax expense (benefit) 12,785 701 (716 ) (1 ) 12,769 Net income (loss) $ 49,624 2,315 (2,266 ) (3 ) 49,670 Assets $ 3,786,360 84,335 610,167 (690,114 ) 3,790,748 Loans receivable, net 2,494,421 30,879 — (15,427 ) 2,509,873 Loans held for sale 1,450 15,522 — — 16,972 Deposits 2,724,920 — — (6,727 ) 2,718,193 Borrowed funds 432,500 14,951 32,436 (14,951 ) 464,936 Community Mortgage For the Year Ended December 31, 2017 Banking Banking Other Eliminations Total (In thousands) Interest income $ 93,319 1,743 31 (6 ) 95,087 Interest expense 12,100 172 1,152 (171 ) 13,253 Net interest income (expense) 81,219 1,571 (1,121 ) 165 81,834 Provision for loan losses 779 — — — 779 Noninterest income from external customers 14,262 19,654 — — 33,916 Intersegment noninterest income 966 67 — (1,033 ) — Noninterest expense 55,900 16,614 931 — 73,445 Intersegment noninterest expense — 966 1 (967 ) — Income (loss) before income taxes 39,768 3,712 (2,053 ) 99 41,526 Income tax expense (benefit) 12,929 1,262 (1,267 ) 37 12,961 Net income (loss) $ 26,839 2,450 (786 ) 62 28,565 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 Community Mortgage For the Year Ended December 31, 2016 Banking Banking Other Eliminations Total (In thousands) Interest income $ 59,242 1,591 17 64 60,914 Interest expense 8,149 93 603 (92 ) 8,753 Net interest income (expense) 51,093 1,498 (586 ) 156 52,161 Provision for loan losses (36 ) 36 — — — Noninterest income from external customers 8,389 20,908 — — 29,297 Intersegment noninterest income 966 46 — (1,012 ) — Noninterest expense 38,260 16,938 842 — 56,040 Intersegment noninterest expense 966 1 — (967 ) — Income (loss) before income taxes 21,258 5,477 (1,428 ) 111 25,418 Income tax expense (benefit) 6,384 1,948 (526 ) 42 7,848 Net income (loss) $ 14,874 3,529 (902 ) 69 17,570 Assets $ 1,678,541 78,315 179,681 (252,801 ) 1,683,736 Loans receivable, net 1,151,704 27,433 — (11,559 ) 1,167,578 Loans held for sale 2,159 29,410 — — 31,569 Deposits 1,263,030 — — (4,770 ) 1,258,260 Borrowed funds 226,000 10,990 15,465 (10,990 ) 241,465 |
SUMMARIZED QUARTERLY INFORMATIO
SUMMARIZED QUARTERLY INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
SUMMARIZED QUARTERLY INFORMATION (UNAUDITED) | NOTE 22 – SUMMARIZED QUARTERLY INFORMATION (UNAUDITED) 2018 Quarter Ended (unaudited) 4th 3rd 2nd 1st Quarter Quarter Quarter Quarter (In thousands) Interest income $ 42,919 40,985 39,477 37,676 Interest expense 8,027 7,102 6,572 5,545 Net interest income 34,892 33,883 32,905 32,131 Provision for loan losses 750 750 559 — Noninterest income 8,520 10,300 11,027 10,048 Noninterest expense 23,237 24,002 24,371 37,598 Income before income taxes 19,425 19,431 19,002 4,581 Income tax expense 3,981 4,227 4,036 525 Net income $ 15,444 15,204 14,966 4,056 Earnings per common share: Basic $ 0.69 $ 0.67 $ 0.70 $ 0.19 Diluted $ 0.68 $ 0.66 $ 0.70 $ 0.19 2017 Quarter Ended (unaudited) 4th 3rd 2nd 1st Quarter Quarter Quarter Quarter (In thousands) Interest income $ 32,368 22,926 22,123 17,670 Interest expense 4,451 3,377 3,025 2,400 Net interest income 27,917 19,549 19,098 15,270 Provision for loan losses 779 — — — Noninterest income 10,005 7,875 8,805 7,231 Noninterest expense 26,513 15,456 15,890 15,586 Income before income taxes 10,630 11,968 12,013 6,915 Income tax expense 4,302 3,975 2,673 2,011 Net income $ 6,328 7,993 9,340 4,904 Earnings per common share: Basic $ 0.33 $ 0.50 $ 0.58 $ 0.35 Diluted $ 0.33 $ 0.49 $ 0.58 $ 0.35 |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | NOTE 23 - PARENT COMPANY FINANCIAL INFORMATION The condensed financial statements for the parent company are presented below: Carolina Financial Corporation Condensed Statements of Operations For the Years Ended December 31, 2018 2017 2016 (In thousands) Dividend income from banking subsidiary $ — — — Interest income 56 31 18 Total income 56 31 18 Interest expense 2,025 1,152 599 General and administrative expenses 1,013 932 847 Total expenses 3,038 2,084 1,446 (Loss) before income taxes and equity in undistributed earnings of subsidiaries (2,982 ) (2,053 ) (1,428 ) Income tax benefit (716 ) (1,267 ) (526 ) (Loss) before equity in undistributed earnings of subsidiaries (2,266 ) (786 ) (902 ) Equity in undistributed earnings of CresCom Bank 51,936 29,351 18,472 Total equity in undistributed earnings of subsidiaries 51,936 29,351 18,472 Net income $ 49,670 28,565 17,570 Carolina Financial Corporation Condensed Balance Sheets At December 31, 2018 2017 Assets: (In thousands) Cash and cash equivalents $ 5,371 4,919 Investment in bank subsidiary 597,899 501,867 Investment in unconsolidated statutory business trusts 1,116 1,116 Securities available-for-sale 1 501 Other assets 7,047 982 Total assets $ 611,434 509,385 Liabilities and stockholders’ equity: Accrued expenses and other liabilities 3,713 1,745 Long-term debt 32,436 32,259 Stockholders’ equity 575,285 475,381 Total liabilities and stockholders’ equity 611,434 509,385 Carolina Financial Corporation For the Years Ended December 31, 2018 2017 2016 (In thousands) Cash flows from operating activities: Net income $ 49,670 28,565 17,570 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings in subsidiaries (51,936 ) (29,351 ) (18,472 ) Stock-based compensation 2,700 1,658 1,271 Vested stock awards surrendered in cashless exercise (774 ) (1,789 ) (482 ) Decrease (increase) in other assets (5,423 ) 1,053 (232 ) Increase (decrease) in other liabilities 1581 (3,456 ) (163 ) Net cash (used in) provided by operating activities (4,182 ) (3,320 ) (508 ) Cash flows from investing activities: Equity contribution in bank subsidiaries (60,000 ) (35,000 ) (15,966 ) Equity contribution in non-bank subsidiaries — — — Sales and maturities of available for sale securities 500 — — Sale or repayment of investments to subsidiaries 12,000 — — Net cash (paid) received from acquisitions — (6,016 ) 7,734 Net cash (used in) investing activities (47,500 ) (41,016 ) (8,232 ) Cash flows from financing activities: Issuance of common stock, net of offering expenses 63,022 47,671 — Stock options exercised 56 10 27 Stock repurchase plan, net of commissions (5,381 ) — — Excess tax benefit in connection with equity awards — 439 454 Cash dividends paid on common stock (5,563 ) (2,371 ) (1,475 ) Net cash provided by (used in) financing activities 52,134 45,749 (994 ) Net increase (decrease) in cash and cash equivalents 452 1,413 (9,734 ) Cash and cash equivalents, beginning of year 4,919 3,506 13,240 Cash and cash equivalents, end of year $ 5,371 4,919 3,506 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 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 Crescent Mortgage Company, Carolina Services Corporation of Charleston (“Carolina Services”), DTFS, Inc., 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 December 31, 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. |
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. |
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 except as follows: On January 23, 2019, the Company’s Board of Directors declared a $0.08 dividend per common share payable on April 5, 2019 to stockholders of record as of March 15, 2019. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consists of cash and due from banks and interest-bearing cash with banks. Substantially all of the interest-bearing cash at December 31, 2018 and 2017 consists of Federal Reserve Bank of Richmond (“FRB”) and Federal Home Loan Bank of Atlanta (“FHLB”) overnight deposits. Cash and cash equivalents have maturities of three months or less. The Bank is required to maintain average balances on hand or with the FRB. Cash on hand satisfied the reserve requirements at December 31, 2018 and December 31, 2017. |
Securities | Securities Investment securities are classified into three categories: (a) Held-to-Maturity – debt securities that the Company has positive intent and ability to hold to maturity, which are reported at amortized cost; (b) Trading – debt and equity securities that are bought and held principally for the purpose of selling them in the near term, which are reported at fair value, with unrealized gains and losses included in earnings; and (c) Available-for-Sale securities that may be sold under certain conditions, which are reported at fair value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive income. The Company determines the category of the investment at the time of purchase. If a security is transferred from available–for-sale to held-to-maturity, the fair value at the time of transfer becomes the held-to-maturity security’s new cost basis. Premiums and discounts on securities are accreted and amortized as an adjustment to interest yield over the estimated life of the security using a method which approximates a level yield. Dividends and interest income are recognized when earned. Unrealized losses on securities, reflecting a decline in value judged by the Company to be other-than-temporary, are charged to income in the consolidated statements of operations. The cost basis of securities sold is determined by specific identification. Purchases and sales of securities are recorded on a trade date basis. |
Loans Held for Sale | Loans Held for Sale The Company’s residential mortgage lending activities for sale in the secondary market are comprised of accepting residential mortgage loan applications, qualifying borrowers to standards established by investors, funding residential mortgage loans and selling mortgage loans to investors under pre-existing commitments. Loans held for sale are recorded at fair value. 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. Adjustments to reflect unrealized gains and losses resulting from changes in fair value and realized gains and losses upon ultimate sale of the loans are classified as mortgage banking income in the Consolidated Statements of Operations. The Company issues rate lock commitments to borrowers on prices quoted by secondary market investors. Derivatives related to these commitments are recorded as either assets or liabilities in the balance sheet and are measured at fair value. Changes in the fair value of the derivatives are reported in current earnings or other comprehensive income depending on the purpose for which the derivative is held and whether the derivative qualifies for hedge accounting. |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are recognized as either assets or liabilities and are recorded at fair value on the Company’s Consolidated Balance Sheet. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and resulting designation. The Company’s hedging policies permit the use of various derivative financial instruments to manage interest rate risk or to hedge specified assets and liabilities. To qualify for hedge accounting, derivatives must be highly effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the derivative contract. If derivative instruments are designated as fair value hedges, and such hedges are highly effective, both the change in the fair value of the hedge and the hedged item are included in current earnings. If derivative instruments are designated as cash flow hedges, fair value adjustments related to the effective portion are recorded in other comprehensive income and are reclassified to earnings when the hedged transaction is reflected in earnings. Ineffective portions of cash flow hedges are reflected in earnings as they occur. Actual cash receipts and/or payments and related accruals on derivatives related to hedges are recorded as adjustments to the interest income or interest expense associated with the hedged item. During the life of the hedge, the Company formally assesses whether derivatives designated as hedging instruments continue to be highly effective in offsetting changes in the fair value or cash flows of hedged items. If it is determined that a hedge has ceased to be highly effective, the Company will discontinue hedge accounting prospectively. At such time, previous adjustments to the carrying value of the hedged item are reversed into current earnings and the derivative instrument is reclassified to a trading position recorded at fair value. For derivatives not designated as hedges, changes in fair value are recognized in earnings, in noninterest income. For additional discussion related to the determination of fair value related to derivative instruments, see Note 5. |
Loans Receivable, Net | Loans Receivable, Net Loans that management has originated and has the intent and ability to hold for the foreseeable future are reported at their outstanding principal balances net of any unearned income, charge-offs, deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. The net amount of nonrefundable loan origination fees, commitment fees and certain direct costs associated with the lending process are deferred and amortized to interest income over the contractual lives of the loans using methods that approximate a level yield. Commercial loans and substantially all installment loans accrue interest on the unpaid balance of the loans. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or as a practical expedient, at the loan’s observable market price or the fair value of the collateral if the loan is collateral-dependent. When the fair value of the impaired loan is less than the recorded investment in the loan, the impairment is recorded through a specific reserve allocation that is a component of the allowance for loan losses. A loan is charged-off against the allowance for loan losses when all meaningful collection efforts have been exhausted and the loan is viewed as uncollectable in the immediate or foreseeable future. Acquired credit impaired loans are initially recorded at a discount to recognize the difference in the fair value of the loans and the contractual balance. The discount includes a component to recognize the absolute difference between the contractual value and the amount expected to be collected (total cash flow) as well as a component to recognize the net present value of that future amount to be collected. The net present value component is accretable into income and, therefore, generates a yield on all acquired credit impaired loans, regardless of past due status. Therefore, acquired credit impaired loans are considered to be accruing. Acquired credit impaired loans that are greater than 90 days past due are placed into the greater than 90 days past due and still accruing category when analyzing the aging status of the loan portfolio. See Note 6 – Loans Receivable, Net for further detail. |
Troubled Debt Restructurings ("TDRs") | Troubled Debt Restructurings (“TDRs”) The Company designates loan modifications as TDRs when, for economic or legal reasons related to the borrower’s financial difficulties, it grants a concession to the borrower that it would not otherwise consider. Loans on nonaccrual status at the date of modification are initially classified as nonaccrual TDRs. Loans on accruing status at the date of modification are initially classified as accruing TDRs at the date of modification, if the note is reasonably assured of repayment and performance is in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the modification date if reasonable doubt exists as to the collection of interest or principal under the restructuring agreement. Nonaccrual TDRs are returned to accrual status when there is economic substance to the restructuring, there is well documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated repayment performance in accordance with the modified terms for a reasonable period of time, generally a minimum of six months. |
Nonperforming Assets | Nonperforming Assets Nonperforming assets include loans on which interest is not being accrued, accruing loans that are 90 days or more delinquent and foreclosed property. Foreclosed property consists of real estate and other assets acquired as a result of a borrower’s loan default. Generally, a loan is placed on nonaccrual status when it becomes 90 days past due as to principal or interest, or when we believe, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that collection of the loan is doubtful. A payment of interest on a loan that is classified as nonaccrual is recognized as a reduction of principal when received. In general, a nonaccrual loan may be placed back onto accruing status once the borrower has made a minimum of six consecutive payments in accordance with the loan terms. Further, the borrower must show capacity to continue performing into the future prior to restoration of accrual status. Assets acquired as a result of foreclosure are initially recorded at fair value less estimated selling costs at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Gains and losses on the sale of assets acquired through foreclosure and related revenue and expenses of these assets are included in noninterest expense in other real estate expenses, net. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. These analyses involve a high degree of judgment in estimating the amount of loss associated with specific loans, including estimating the amount and timing of future cash flows and collateral values. Impaired loans are evaluated for impairment using the discounted cash flow methodology or based on the net realizable value of the underlying collateral. Impaired loans are individually reviewed on a quarterly basis to determine the level of impairment. Factors considered by management in determining impaired loans include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. If a loan has impairment, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. For collateral-dependent loans, the measurement of impairment was based on the net investment of the loan compared to the fair value of the collateral less estimated selling costs. In most cases, the fair value of the collateral was based on appraised value. When appropriate, the fair value was based on the probable sales price of the collateral when sale of the collateral was imminent or contracted sales price if the collateral is subject to a binding sales contract as of the end of the quarter. The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The Company considers the actual loss history experience over the trailing twenty quarters to determine the historical loss experience used in the general component. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries for the most recent twenty quarters; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. While management uses the best information available to establish the allowance for loan losses, future adjustments to the allowance may be necessary if economic conditions differ substantially from the assumptions used in making the valuations or, if required by regulators, based upon information available to them at the time of their examinations. Such adjustments to original estimates, as necessary, are made in the period in which these factors and other relevant considerations indicate that loss levels may vary from previous estimates. |
Business Combinations and Method of Accounting for Loans Acquired | Business Combinations and Method of Accounting for Loans Acquired The Company accounts for its acquisitions under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations 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. 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. In determining the Day 1 Fair Values of acquired loans without evidence of credit deterioration at the date of acquisition, management includes (i) no carryover of any previously recorded allowance for loan losses and (ii) an adjustment of the unpaid principal balance to reflect an appropriate market rate of interest, given the risk profile and grade assigned to each loan. This adjustment will be accreted into earnings as a yield adjustment, using the effective yield method, over the remaining life of each loan. To the extent that current information indicates it is probable that the Company will collect all amounts according to the contractual terms thereof, such loan is not considered impaired and is not considered in the determination of the required allowance for loan losses. To the extent that current information indicates it is probable that the Company will not be able to collect all amounts according to the contractual terms thereon, such loan is considered impaired and is considered in the determination of the required level of allowance for loan and lease losses. Subsequent to the acquisition date, increases in cash flows expected to be received on purchased credit impaired loans in excess of the Company’s initial estimates are reclassified from nonaccretable difference to accretable yield and are accreted into interest income on a level-yield basis over the remaining life of the loan. Decreases in cash flows expected to be collected are recognized as impairment through the provision for loan losses. |
Goodwill and Core Deposit Intangible | Goodwill and Core Deposit Intangible Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill is not amortized but instead is subject to review for impairment annually, or more frequently if deemed necessary. Also in connection with business combinations, the Company records core deposit intangibles, representing the value of the acquired core deposit base. Core deposit intangibles are amortized over their estimated useful lives ranging up to 10 years. |
Mortgage Servicing Rights, Fees and Costs | Mortgage Servicing Rights, Fees and Costs 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 using the amortization method. Mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing income. The amortization of the mortgage servicing rights is analyzed periodically and is adjusted to reflect changes in prepayment rates and other estimates. The Company evaluates potential impairment of mortgage servicing rights based on the difference between the carrying amount and current estimated fair value of the servicing rights. In determining impairment, the Company aggregates all servicing rights and stratifies them into tranches based on predominant risk characteristics. If impairment exists, a valuation allowance is established for any excess of amortized cost over the current estimated fair value by a charge to income. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Service fee income is recorded for fees earned for servicing mortgage loans under servicing agreements with the Federal National Mortgage Association (“FNMA”), the Federal Home Loan Mortgage Corporation (“FHLMC”), Government National Mortgage Association (“GNMA”) and certain private investors. The fees are based on a contractual percentage of the outstanding principal balance of the loans serviced and are recorded as income when received in noninterest income. Amortization of mortgage servicing rights and mortgage servicing costs are charged to expense when incurred. |
Guarantees | Guarantees Standby letters of credit obligate the Company to meet certain financial obligations of its customers, under the contractual terms of the agreement, if the customers are unable to do so. Payment is only guaranteed under these letters of credit upon the borrower’s failure to perform its obligations to the beneficiary. The Company can seek recovery of the amounts paid from the borrower; however, these standby letters of credit are generally not collateralized. Commitments under standby letters of credit are usually one year or less. At December 31, 2018 and 2017, the Company had recorded no liability for the current carrying amount of the obligation to perform as a guarantor; as such amounts are not considered material. |
Premises and Equipment, Net | Premises and Equipment, Net Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the asset’s estimated useful life. Estimated lives range up to forty years for buildings and improvements and up to ten years for furniture, fixtures and equipment. Maintenance and repairs are charged to expense as incurred. Improvements that extend the lives of the respective assets are capitalized. When property or equipment is sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the respective accounts and the resulting gain or loss is reflected in income. |
Income Taxes | Income Taxes The provision for income taxes is based upon income or loss before taxes for financial statement purposes, adjusted for nontaxable income and nondeductible expenses. Deferred income taxes have been provided when different accounting methods have been used in determining income for income tax purposes and for financial reporting purposes. Deferred tax assets and liabilities are recognized based on future tax consequences attributable to differences arising from the financial statement carrying values of assets and liabilities and their tax bases. In the event of changes in the tax laws, deferred tax assets and liabilities are adjusted in the period of the enactment of those changes, with the cumulative effects included in the current year’s income tax provision. Positions taken by the Company’s tax returns may be subject to challenge by the taxing authorities upon examination. The benefits of uncertain tax positions are initially recognized in the financial statements only when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. The Company believes that its income tax filing positions taken or expected to be taken in its tax returns will more likely than not be sustained upon audit by the taxing authorities and does not anticipate any adjustments that will result in a material adverse impact on the Company’s financial condition, results of operations, or cash flow. Therefore, no reserves for uncertain tax positions have been recorded. The Company’s federal income tax returns were not examined. Interest and penalties on income tax uncertainties are classified within income tax expense in the statement of operations. There were no significant interest and penalties paid on income tax uncertainties during 2018 or 2017. It is management’s belief that the realization of the remaining net deferred tax assets is more likely than not. Accordingly, no additional reserve was considered necessary. See Note 13 for additional information. |
Drafts Outstanding | Drafts Outstanding The Company invests excess funds on deposit at other banks (including amounts on deposit for payment of outstanding disbursement checks) on a daily basis in an overnight interest-bearing account. Accordingly, outstanding checks are reported as a liability. |
Reserve for Mortgage Loan Repurchase Losses | Reserve for Mortgage Loan Repurchase Losses The Company sells mortgage loans to various third parties, including government-sponsored entities, under contractual provisions that include various representations and warranties that typically cover ownership of the loan, compliance with loan criteria set forth in the applicable agreement, validity of the lien securing the loan, absence of delinquent taxes or liens against the property securing the loan, and similar matters. The Company may be required to repurchase the mortgage loans with identified defects, indemnify the investor or insurer, or reimburse the investor for credit loss incurred on the loan (collectively “repurchase”) in the event of a material breach of such contractual representations or warranties. Risk associated with potential repurchases or other forms of settlement is managed through underwriting and quality assurance practices and by servicing mortgage loans to meet investor and secondary market standards. The Company establishes mortgage repurchase reserves related to various representations and warranties that reflect management’s estimate of losses based on a combination of factors. Such factors incorporate estimated levels of defects on internal quality assurance, default expectations, historical investor repurchase demand and appeals success rates, reimbursement by correspondent and other third party originators, changes in the regulatory repurchase framework and projected loss severity. The Company establishes a reserve at the time loans are sold and quarterly updates the reserve estimate during the estimated loan life. The following table presents activity in the reserve for mortgage loan repurchase losses: December 31, 2018 2017 2016 (In thousands) Beginning Balance $ 1,892 2,880 3,876 Losses paid — (88 ) (21 ) Recoveries — — 25 Recovery for mortgage repurchase losses (600 ) (900 ) (1,000 ) Ending balance $ 1,292 1,892 2,880 |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Off-Balance-Sheet Financial Instruments | Off-Balance-Sheet Financial Instruments In the ordinary course of business, the Company entered into off-balance-sheet financial instruments consisting of commitments to extend credit, commitments under revolving credit agreements, and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded. |
Stock Compensation Plans | Stock Compensation Plans The Company can issue stock options, restricted stock, and restricted stock units under various plans to directors, officers and other key employees. The Company accounts for its stock compensation plans in accordance with ASC Topics 718 and 505. Under those provisions, the Company has adopted a fair value based method of accounting for employee stock compensation plans, whereby compensation cost is measured at the grant date based on the value of the award and is recognized on a straight-line basis over the service period, which is usually the vesting period, taking into account retirement eligibility. As a result, compensation expense relating to stock options and restricted stock is reflected in net income as part of “salaries and employee benefits” on the consolidated statements of operations. |
Earnings Per Share | Earnings Per Common 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. All share, earnings per share, and per share data have been retroactively adjusted to reflect the stock splits for all periods presented in accordance with GAAP. |
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 16—Estimated Fair Value of Financial Instruments for more information. 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 have been applied to awards 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. 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. A description of the Company’s revenue streams accounted for under ASC 606, Revenue from Contracts with Customers Deposit service charges: Debit card 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. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 amends the Fair Value Measurement Topic of the Accounting Standards Codification. The amendments remove, modify, and add certain fair value disclosure requirements based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting – Chapter 8: Notes to Financial Statements. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance on this ASU and delay adoption of the additional disclosures until their effective date. The Company does not expect these amendments to have a material effect on its financial statements. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”). ASU 2018-11 amends the Leases Topic of the Accounting Standards Codification to give entities another option for transition and to provide lessors with a practical expedient. Additionally in July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases (“ASU 2018-10”). ASU 2018-10 makes narrow amendments to clarify how to apply certain aspects of the new leases standard. The amendments will be effective for the Company for reporting periods beginning after December 15, 2018. The Company does not expect these amendments to have a material effect on its financial statements. Refer to additional documentation related to the Company’s planned adoption of ASU 2016-02 below. 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 has determined that this guidance is not expected to have a material impact on the Company’s consolidated financial statements. 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 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 for the premium to the earliest call date. 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 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. While early adoption is permitted beginning in first quarter 2019, we do not expect to elect that option and the Company continues to evaluate the impact of the ASU on our consolidated financial statements. 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 over the contractual life of the loans. In addition to the allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. 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 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. 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. We expect to adopt the guidance using the modified retrospective approach on January 1, 2019 and elect the practical expedients for transition including the transition option provided in ASU 2018-11. The practical expedients allow us to largely account for our existing operating leases consistent with current guidance except for the incremental balance sheet recognition for leases. The Company expects that the adoption of ASU 2016-02 will result in the recognition of lease liabilities totaling $18 million to $20 million and the recognition of right-of-use assets totaling $18 million to $20 million. Therefore, the Company expected the provisions of ASU No. 2016-02 to have an immaterial impact on the Company’s regulatory capital ratios. 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. |
Risks and Uncertainties | Risks and Uncertainties In the normal course of its business, the Company encounters two significant types of risks: economic and regulatory. There are three main components of economic risk: interest rate risk, credit risk, and market risk. The Company is subject to interest rate risk to the degree that its interest-bearing liabilities mature or re-price at different speeds, or on a different basis, than its interest-earning assets. Credit risk is the risk of default on the loan portfolio or certain securities that results from borrowers’ inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans receivable and the valuation of real estate held by the Company. The Company is subject to the regulations of various governmental agencies. These regulations can and do change significantly from period to period. Periodic examinations by the regulatory agencies may subject the Company to further changes with respect to asset valuations, amounts of required loss allowances and operating restrictions from the regulators’ judgments based on information available to them at the time of their examination. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary Of Significant Accounting Policies | |
Schedule of Reserve for mortgage loan repurchase losses | The following table presents activity in the reserve for mortgage loan repurchase losses: December 31, 2018 2017 2016 (In thousands) Beginning Balance $ 1,892 2,880 3,876 Losses paid — (88 ) (21 ) Recoveries — — 25 Recovery for mortgage repurchase losses (600 ) (900 ) (1,000 ) Ending balance $ 1,292 1,892 2,880 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of deposits acquired at the Acquisition date | The table below presents unaudited supplemental pro forma information as if the First South, Greer and Congaree acquisitions had occurred at the beginning of the earliest period presented, which was January 1, 2016 and were included for all periods presented, except for Congaree which is already included in historical information for 2017. For The Year Ended December 31, 2017 2016 (In thousands, except share data) Net interest income (a) $ 122,739 $ 108,519 Net income (a) $ 43,435 $ 36,336 Weighted average shares outstanding: Basic (b) 20,724,990 18,917,650 Diluted (b) 20,957,846 19,189,768 Earnings per common share: Basic $ 2.10 $ 1.92 Diluted $ 2.07 $ 1.89 (a) Supplemental pro forma net income includes the impact of certain fair value adjustments. Supplemental pro forma net income does not include assumptions on cost saves or impact of merger related expenses. (b) Weighted average shares outstanding include the full effect of the common stock issued in connection with the acquisitions as of the earliest reporting date. |
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. November 1, 2017 As Reported by Fair Value As Recorded by (In thousands) Assets 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) 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 First South’s historical allowance for loan losses. (c) Adjustment reflects fair value adjustments on acquired branch and administrative offices based from the Company’s assessment. (d) Adjustment reflects the impact of acquisition accounting fair value adjustments. (e) Adjustment reflects the fair value adjustment to record the estimated core deposit intangible based on the Company’s assessment. (f) Adjustment reflects the tax impact of acquisition accounting fair value adjustments. (g) Adjustment reflects the fair value adjustment based on the Company’s evaluation of acquired other assets. (h) Adjustment represents the fair value adjustment due to interest rate factors. (i) Adjustment represents the fair value adjustment due to interest rate factors. (j) Adjustment 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. March 18, 2017 As Reported Fair Value As Recorded by 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 the Company’s assessment. (d) Adjustment reflects the fair value adjustment to record the estimated core deposit intangible based on the Company’s assessment. (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. |
Congaree Bancshares, 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 thousands). Common stock issued (508,910 shares) $ 8,557 Cash payments to common stockholders 5,724 Preferred shares assumed and redeemed at par 1,564 Fair value of Congaree stock options assumed - paid out in cash 439 Total consideration paid $ 16,284 |
Schedule of loans acquired at the Acquisition date | The following table presents the Congaree assets acquired and liabilities assumed as of June 11, 2016 as well as the related fair value adjustments and determination of goodwill. As Reported by Fair Value As Recorded by Assets (In thousands) Cash and cash equivalents $ 11,394 — 11,394 Securities available-for-sale 9,453 (59 )(a) 9,394 Loans 78,712 (4,111 )(b) 74,601 Allowance for loan losses (1,112 ) 1,112 (c) — Premises and equipment 2,712 38 (d) 2,750 Foreclosed assets 1,710 (250 )(e) 1,460 Core deposit intangible — 1,104 (f) 1,104 Deferred tax asset 1,813 915 (g) 2,728 Other assets 942 (152 )(h) 790 Total assets acquired $ 105,624 (1,403 ) 104,221 Liabilities Deposits $ 89,227 98 (i) 89,325 Borrowings 2,500 — 2,500 Other liabilities 378 — 378 Total liabilities assumed $ 92,105 98 92,203 Net assets acquired 12,018 Total consideration paid 16,284 Goodwill $ 4,266 Explanation of fair value adjustments: (a) Adjustment reflects opening fair value of securities portfolio, which was established as the new book basis of the portfolio. (b) Adjustment reflects the fair value adjustment based on the Company’s assessment. (c) Adjustment reflects the elimination of Congaree’s historical allowance for loan losses. (d) Adjustment reflects fair value adjustments on acquired branch and administrative offices based on the Company’s assessment. (e) Adjustment reflects the fair value adjustment based on the Company’s evaluation of the foreclosed assets. (f) Adjustment reflects the fair value adjustment to record the estimated core deposit intangible based on the Company’s assessment. (g) Adjustment reflects the tax impact of acquisition accounting fair value adjustments. (h) Adjustment reflects the fair value adjustment based on the Company’s evaluation of acquired other assets. (i) Adjustment reflects the fair value adjustment based on the Company’s assessment. |
CORE DEPOSIT INTANGIBLES (Table
CORE DEPOSIT INTANGIBLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Core Deposit Intangibles | |
Schedule of Amortization expense for core deposit intangible | Amortization expense (in thousands) for core deposit intangible is expected to be as follows. Year 1 $ 2,910 Year 2 2,682 Year 3 2,432 Year 4 2,200 Year 5 1,971 Thereafter 4,267 Total $ 16,462 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 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 investment securities available-for-sale at December 31, 2018 and 2017 follows: At December 31, 2018 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 $ 212,215 2,768 (1,269 ) 213,714 240,904 6,790 (344 ) 247,350 US government agencies 24,772 505 — 25,277 11,983 34 (9 ) 12,008 Collateralized loan obligations 231,172 119 (592 ) 230,699 128,080 581 (18 ) 128,643 Corporate securities 6,915 69 (24 ) 6,960 6,891 115 — 7,006 Mortgage-backed securities: Agency 199,518 427 (2,425 ) 197,520 243,075 1,234 (714 ) 243,595 Non-agency 158,803 423 (1,695 ) 157,531 94,834 551 (260 ) 95,125 Total mortgage-backed securities 358,321 850 (4,120 ) 355,051 337,909 1,785 (974 ) 338,720 Trust preferred securities 11,066 1,713 (1,679 ) 11,100 11,208 1,132 (2,828 ) 9,512 Total $ 844,461 6,024 (7,684 ) 842,801 736,975 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 December 31, 2018 follows: 2018 Amortized Fair Cost Value (In thousands) Securities available-for-sale: Five years or less $ 7,566 7,635 Six to ten years 123,883 124,586 After ten years 713,012 710,580 Total $ 844,461 842,801 |
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 Years Ended December 31, 2018 2017 (In thousands) Proceeds $ 135,681 173,727 Realized gains 494 1,519 Realized losses (2,440 ) (586 ) Total investment securities (loss) gain, net $ (1,946 ) 933 |
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 December 31, 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 December 31, 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 $ 12,395 12,331 (64 ) 55,189 53,984 (1,205 ) 67,584 66,315 (1,269 ) US government agencies — — — — — — — — — Collateralized loan obligations 146,913 146,344 (569 ) 5,000 4,977 (23 ) 151,913 151,321 (592 ) Corporate securities 2,980 2,956 (24 ) — — — 2,980 2,956 (24 ) Mortgage-backed securities: Agency 14,615 14,450 (165 ) 120,325 118,065 (2,260 ) 134,940 132,515 (2,425 ) Non-agency 71,376 70,709 (667 ) 43,138 42,110 (1,028 ) 114,514 112,819 (1,695 ) Total mortgage-backed securities 85,991 85,159 (832 ) 163,463 160,175 (3,288 ) 249,454 245,334 (4,120 ) Trust preferred securities — — — 8,214 6,535 (1,679 ) 8,214 6,535 (1,679 ) Total $ 248,279 246,790 (1,489 ) 231,866 225,671 (6,195 ) 480,145 472,461 (7,684 ) 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 ) Corporate securities — — — — — — — — — 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 ) |
Schedule of Non-marketable investments | The following table presents detail of non-marketable investments at December 31, 2018 and 2017. At December 31, 2018 2017 (In thousands) Community Reinvestment Act fund $ 2,334 2,330 Investment in Statutory Business Trusts 1,116 1,116 Total other investments 3,450 3,446 Federal Home Loan Bank stock 21,696 19,065 Total non-marketable investments $ 25,146 22,511 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative positions of Company | The derivative positions of the Company at December 31, 2018 and December 31, 2017 are as follows: At December 31, 2018 2017 Fair Notional Fair Notional Value Value Value Value (In thousands) Derivative assets: Cash flow hedges: Interest rate swaps $ 1,232 45,000 644 45,000 Non-hedging derivatives: Interest rate swaps 1,198 50,000 964 50,000 Mortgage loan interest rate lock commitments 1,199 76,571 890 98,584 Mortgage loan forward sales commitments 403 13,241 305 23,401 Total derivative assets $ 4,032 184,812 2,803 216,985 Derivative liabilities: Non-hedging derivatives: Interest rate swaps $ 937 50,000 95 5,000 Mortgage-backed securities forward sales commitments 295 52,000 61 75,000 Total derivative liabilities $ 1,232 102,000 156 80,000 |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of categories of loans | Loans receivable, net at December 31, 2018 and 2017 are summarized by category as follows: At December 31, 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 $ 732,717 29.03 % 665,774 28.70 % Home equity 83,770 3.32 % 90,141 3.89 % Commercial real estate 1,034,117 40.96 % 933,820 40.26 % Construction and development 290,494 11.51 % 294,793 12.71 % Consumer loans 23,845 0.94 % 19,990 0.86 % Commercial business loans 359,393 14.24 % 315,010 13.58 % Total gross loans receivable 2,524,336 100.00 % 2,319,528 100.00 % Less: Allowance for loan losses 14,463 11,478 Total loans receivable, net $ 2,509,873 2,308,050 |
Schedule of loan acquired non-credit impaired loans and nonacquired loans | Loans receivable, net at December 31, 2018 and 2017 for purchased non-credit impaired loans and nonacquired loans are summarized by category as follows: At December 31, At December 31, 2018 2017 Purchased Non-Credit Impaired Loans % of Total % of Total (ASC 310-20) and Nonpurchased Loans: Amount Loans Amount Loans (Dollars in thousands) Loans secured by real estate: One-to-four family $ 723,641 29.24 % 654,597 29.21 % Home equity 83,717 3.38 % 89,961 4.01 % Commercial real estate 1,004,420 40.59 % 891,469 39.77 % Construction and development 287,673 11.63 % 287,437 12.83 % Consumer loans 23,792 0.96 % 19,895 0.89 % Commercial business loans 351,194 14.20 % 297,754 13.29 % Total gross loans receivable 2,474,437 100.00 % 2,241,113 100.00 % Less: Allowance for loan losses 14,463 11,478 Total loans receivable, net $ 2,459,974 2,229,635 Loans receivable, net at December 31, 2018 and 2017 for purchased credit impaired loans are summarized by category as follows: At December 31, 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 $ 9,077 18.19 % 11,177 14.25 % Home equity 53 0.11 % 180 0.23 % Commercial real estate 29,696 59.51 % 42,351 54.01 % Construction and development 2,821 5.65 % 7,356 9.38 % Consumer loans 53 0.11 % 95 0.12 % Commercial business loans 8,199 16.43 % 17,256 22.01 % Total gross loans receivable 49,899 100.00 % 78,415 100.00 % Less: Allowance for loan losses — — Total loans receivable, net $ 49,899 78,415 |
Schedule of changes in the value of the accretable yield for PCI loans | The table below presents changes in the value of PCI loans for the year ended December 31, 2018 and 2017. At December 31, 2018 2017 (In thousands) Balance at beginning of period $ 78,415 — Fair value of acquired loans — 86,732 Net reductions for payments, foreclosures, and accretion (28,516 ) (8,317 ) Balance at end of period, net of allowance for loan losses on PCI loans $ 49,899 78,415 The table below presents changes in the value of the accretable yield for PCI loans for the year ended December 31, 2018. At December 31, 2018 2017 (In thousands) Accretable yield, beginning of period $ 12,536 — Additions — 14,472 Accretion (6,092 ) (1,936 ) Reclassification from nonaccretable balance, net (a) 8,147 — Other changes, net (b) 5,317 — Accretable yield, end of period $ 19,908 12,536 (a) Reclassifications from the nonaccretable balance in the year ended December 31, 2018 were driven by improvement in credit quality, primarily delinquencies. (b) Other changes, net for the year ended December 31, 2018 include the impact of changes in expectations of cash flows, which may vary from period to period due to the impact of modifications and changes to prepayment assumptions, as well as the impact of changes in interest rates on variable rate loans. |
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 December 31, 2018 2017 (Dollars in thousands) Variable rate loans $ 942,348 37.33 % 807,748 34.82 % Fixed rate loans 1,581,988 62.67 % 1,511,780 65.18 % Total gross loans outstanding $ 2,524,336 100.00 % 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: At December 31, 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 at January 1, 2018 $ 2,719 168 3,986 1,201 79 2,840 485 11,478 Provision for loan losses 905 59 1,120 (320 ) 488 (70 ) (123 ) 2,059 Charge-offs (226 ) (31 ) (86 ) (24 ) (308 ) (197 ) — (872 ) Recoveries 142 7 77 1,112 93 367 — 1,798 Balance at December 31, 2018 $ 3,540 203 5,097 1,969 352 2,940 362 14,463 At December 31, 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 at January 1, 2017 $ 2,636 197 3,344 1,132 80 2,805 494 10,688 Provision for loan losses 332 (32 ) 611 (12 ) (27 ) (84 ) (9 ) 779 Charge-offs (253 ) — — — (19 ) — — (272 ) Recoveries 4 3 31 81 45 119 — 283 Balance at December 31, 2017 $ 2,719 168 3,986 1,201 79 2,840 485 11,478 At December 31, 2016 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 at January 1, 2016 $ 2,903 151 3,402 1,138 27 2,100 420 10,141 Provision for loan losses (647 ) 46 (58 ) (82 ) 82 585 74 — Charge-offs (84 ) — — — (53 ) (127 ) — (264 ) Recoveries 464 — — 76 24 247 — 811 Balance at December 31, 2016 $ 2,636 197 3,344 1,132 80 2,805 494 10,688 |
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 December 31, 2018: Allowance for loan losses ending balances: Individually evaluated for impairment $ 176 — 145 515 — 24 — 860 Collectively evaluated for impairment 3,364 203 4,952 1,454 352 2,916 362 13,603 $ 3,540 203 5,097 1,969 352 2,940 362 14,463 Loans receivable ending balances: Individually evaluated for impairment $ 4,687 249 5,105 1,866 31 2,853 — 14,971 Collectively evaluated for impairment 718,953 83,468 999,316 285,807 23,761 348,341 — 2,459,646 Purchased Credit-Impaired Loans 9,077 53 29,696 2,821 53 8,199 — 49,899 Total loans receivable $ 732,717 83,770 1,034,117 290,494 23,845 359,393 — 2,524,336 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 December 31, 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 and for the Year Ended December 31, 2018 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 3,083 3,241 — 1,904 46 Home equity 249 249 — 97 6 Commercial real estate 2,679 2,694 — 2,049 59 Construction and development 323 323 — 274 19 Consumer loans 31 31 — 24 1 Commercial business loans 2,697 2,698 — 983 152 9,062 9,236 — 5,331 283 With an allowance recorded: Loans secured by real estate: One-to-four family 1,604 1,665 176 1,261 43 Home equity — — — — — Commercial real estate 2,426 2,426 145 1,773 98 Construction and development 1,543 1,543 515 1,241 — Consumer loans — — — — — Commercial business loans 156 156 24 161 9 5,729 5,790 860 4,436 150 Total: Loans secured by real estate: One-to-four family 4,687 4,906 176 3,165 89 Home equity 249 249 — 97 6 Commercial real estate 5,105 5,120 145 3,822 157 Construction and development 1,866 1,866 515 1,515 19 Consumer loans 31 31 — 24 1 Commercial business loans 2,853 2,854 24 1,144 162 $ 14,791 15,026 860 9,767 434 At and for the Year Ended December 31, 2017 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 2,725 2,846 — 2,134 80 Home equity — — — — — Commercial real estate 3,370 3,370 — 3,355 111 Construction and development 318 318 — 202 17 Consumer loans 26 26 — 18 1 Commercial business loans 113 114 — 41 4 6,552 6,674 — 5,750 213 With an allowance recorded: Loans secured by real estate: One-to-four family 710 710 64 650 22 Home equity 108 108 29 108 — Commercial real estate 1,441 1,441 — 1,466 82 Construction and development — — — — — Consumer loans — — — — — Commercial business loans 172 172 16 188 10 2,431 2,431 109 2,412 114 Total: Loans secured by real estate: One-to-four family 3,435 3,556 64 2,784 102 Home equity 108 108 29 108 — Commercial real estate 4,811 4,811 — 4,821 193 Construction and development 318 318 — 202 17 Consumer loans 26 26 — 18 1 Commercial business loans 285 286 16 229 14 $ 8,983 9,105 109 8,162 327 At and for the Year Ended December 31, 2016 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 4,125 4,366 — 2,241 100 Home equity — — — — — Commercial real estate 4,011 4,011 — 3,896 217 Construction and development 507 507 — 496 1 Consumer loans 24 24 — 18 2 Commercial business loans 258 258 — 292 9 8,925 9,166 — 6,943 329 With an allowance recorded: Loans secured by real estate: One-to-four family 543 543 27 553 19 Home equity 108 108 29 41 2 Commercial real estate 1,236 1,236 92 1,266 — Construction and development — — — — — Consumer loans — — — — — Commercial business loans 9 9 9 9 — 1,896 1,896 157 1,869 21 Total: Loans secured by real estate: One-to-four family 4,668 4,909 27 2,794 119 Home equity 108 108 29 41 2 Commercial real estate 5,247 5,247 92 5,162 217 Construction and development 507 507 — 496 1 Consumer loans 24 24 — 18 2 Commercial business loans 267 267 9 301 9 $ 10,821 11,062 157 8,812 350 |
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 December 31, 2018 and 2017. At December 31, 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 $ 503 723 1,780 180 296 793 4,275 60-89 days past due 1,677 213 120 588 31 632 3,261 90 days or more past due 4,133 373 3,054 105 117 602 8,384 Total past due 6,313 1,309 4,954 873 444 2,027 15,920 Current 726,404 82,461 1,029,163 289,621 23,401 357,366 2,508,416 Total loans receivable $ 732,717 83,770 1,034,117 290,494 23,845 359,393 2,524,336 At December 31, 2018 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 $ 378 720 1,037 172 296 793 3,396 60-89 days past due 1,313 213 120 559 31 632 2,868 90 days or more past due 3,686 373 2,895 106 117 602 7,779 Total past due 5,377 1,306 4,052 837 444 2,027 14,043 Current 718,264 82,411 1,000,368 286,836 23,348 349,167 2,460,394 Total loans receivable $ 723,641 83,717 1,004,420 287,673 23,792 351,194 2,474,437 At December 31, 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) 30-59 days past due $ 126 3 743 7 — — 879 60-89 days past due 364 — — 30 — — 394 90 days or more past due 447 — 158 — — — 605 Total past due 937 3 901 37 — — 1,878 Current 8,140 50 28,795 2,784 53 8,199 48,021 Total loans receivable $ 9,077 53 29,696 2,821 53 8,199 49,899 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 Nonacquired 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 non-PCI loans receivable, by portfolio segment, on nonaccrual at December 31, 2018 and 2017. At December 31, 2018 2017 Loans secured by real estate: (In thousands) One-to-four family $ 4,471 1,927 Home equity 454 108 Commercial real estate 3,663 1,540 Construction and development 1,675 51 Consumer loans 107 22 Commercial business loans 1,351 313 $ 11,721 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 December 31, 2018 and 2017. At December 31, 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 $ 727,921 83,382 1,016,064 287,559 23,613 353,742 2,492,281 Special Mention 417 — 9,914 534 103 2,166 13,134 Substandard 4,379 388 8,139 2,401 129 3,485 18,921 Total loans receivable $ 732,717 83,770 1,034,117 290,494 23,845 359,393 2,524,336 Performing $ 727,799 83,316 1,030,296 288,819 23,718 358,042 2,511,990 Nonperforming: 90 days past due still accruing 447 — 158 — 20 — 625 Nonaccrual 4,471 454 3,663 1,675 107 1,351 11,721 Total nonperforming 4,918 454 3,821 1,675 127 1,351 12,346 Total loans receivable $ 732,717 83,770 1,034,117 290,494 23,845 359,393 2,524,336 At December 31, 2018 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 $ 720,177 83,336 995,319 285,927 23,571 346,487 2,454,817 Special Mention — — 5,524 71 103 1,378 7,076 Substandard 3,464 381 3,577 1,675 118 3,329 12,544 Total loans receivable $ 723,641 83,717 1,004,420 287,673 23,792 351,194 2,474,437 Performing $ 719,170 83,263 1,000,757 285,998 23,665 349,843 2,462,696 Nonperforming: 90 days past due still accruing — — — — 20 — 20 Nonaccrual 4,471 454 3,663 1,675 107 1,351 11,721 Total nonperforming 4,471 454 3,663 1,675 127 1,351 11,741 Total loans receivable $ 723,641 83,717 1,004,420 287,673 23,792 351,194 2,474,437 At December 31, 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 $ 7,745 45 20,745 1,632 42 7,255 37,464 Special Mention 418 — 4,390 463 — 787 6,058 Substandard 914 8 4,561 726 11 157 6,377 Total loans receivable $ 9,077 53 29,696 2,821 53 8,199 49,899 Performing $ 8,630 53 29,538 2,821 53 8,199 49,294 Nonperforming: 90 days past due still accruing 447 — 158 — — — 605 Nonaccrual — — — — — — — Total nonperforming 447 — 158 — — — 605 Total loans receivable $ 9,077 53 29,696 2,821 53 8,199 49,899 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 Nonacquired 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 |
Schedule of activity in loans to officers, directors and other related parties | Activity in loans to officers, directors and other related parties for the years ended December 31, 2018 and 2017 is summarized as follows: At December 31, 2018 2017 (In thousands) Balance at beginning of year $ 12,902 14,034 New loans 16,363 11,066 Repayments (11,574 ) (12,198 ) Balance at end of year $ 17,691 12,902 |
PREMISES AND EQUIPMENT, NET (Ta
PREMISES AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Premises And Equipment Net | |
Schedule of premises and equipment | Premises and equipment, net at December 31, 2018 and 2017 consists of the following: At December 31, 2018 2017 (In thousands) Land $ 15,093 15,093 Buildings 34,213 34,217 Furniture, fixtures and equipment 29,674 24,490 Construction in process 638 2,216 Total premises and equipment 79,618 76,016 Less: accumulated depreciation (18,752 ) (14,609 ) Premises and equipment, net $ 60,866 61,407 |
REAL ESTATE ACQUIRED THROUGH _2
REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2018 and December 31, 2017: At December 31, 2018 2017 (In thousands) Balance at beginning of year $ 3,106 1,179 Additions 285 2,554 Sales (1,731 ) (627 ) Write downs (126 ) — Balance at end of year $ 1,534 3,106 |
Schedule of composition of other real estate owned | A summary of the composition of real estate acquired through foreclosure follows: At December 31, 2018 2017 (In thousands) Real estate loans: One-to-four family $ 204 709 Construction and development 1,330 2,397 $ 1,534 3,106 |
MORTGAGE SERVICING RIGHTS (Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Mortgage Servicing Rights | |
Schedule of activity in mortgage servicing rights, along with the aggregate activity in the related valuation allowances | The following summarizes the activity in mortgage servicing rights, along with the aggregate activity in the related valuation allowances, for the years ended December 31, 2018 and 2017: December 31, 2018 2017 (In thousands) M SR beginning balance $ 21,003 15,032 Amount capitalized 6,283 6,061 Amount acquired 9,853 2,876 Amount amortized (4,206 ) (2,966 ) M SR ending balance $ 32,933 21,003 |
Schedule of Estimated amortization expense | Estimated amortization expense is presented below for the following subsequent years ended (in thousands): Year 1 $ 5,624 Year 2 5,428 Year 3 5,333 Year 4 5,165 Year 5 4,620 After Year 5 6,763 Total $ 32,933 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Summary of Deposits outstanding | Deposits outstanding by type of account at December 31, 2018 and 2017 are summarized as follows: At December 31, 2018 2017 (In thousands) Noninterest-bearing demand accounts $ 547,022 525,615 Interest-bearing demand accounts 566,527 551,308 Savings accounts 192,322 213,142 Money market accounts 431,246 452,734 Certificates of deposit: Less than $250,000 875,749 755,887 $250,000 or more 105,327 106,243 Total certificates of deposit 981,076 862,130 Total deposits $ 2,718,193 2,604,929 |
Scheduled maturities of certificates of deposit | The amounts and scheduled maturities of certificates of deposit at December 31, 2018 and 2017 are as follows: At December 31, 2018 2017 (In thousands) Maturing within one year $ 684,031 493,525 Maturing one through three years 254,180 305,457 Maturing after three years 42,865 63,148 $ 981,076 862,130 |
SHORT-TERM BORROWED FUNDS (Tabl
SHORT-TERM BORROWED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Short-term Borrowed Funds | |
Schedule of Short-term Borrowed Funds | Short-term borrowed funds at December 31, 2018 and 2017 are summarized as follows: At December 31, 2018 2017 Stated Stated Balance Interest Rate Balance Interest Rate (Dollars in thousands) Short-term FHLB advances $ 405,500 1.05%-2.78% 340,500 0.87%-2.71% Total short-term borrowed funds $ 405,500 340,500 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Debt | |
Schedule of Long Term Debt | Long-term debt at December 31, 2018 and 2017 are summarized as follows: December 31, 2018 Stated Balance Interest Rate (Dollars in thousands) Long-term FHLB advances, due through 2020 $ 27,000 1.72%-2.60 % Subordinated debentures, due 2032 through 2037 32,436 4.25%-5.75 % Total long-term debt $ 59,436 December 31, 2017 Stated Balance Interest Rate (Dollars in thousands) Long-term FHLB advances, due 2018 through 2019 $ 40,000 1.05%-1.98 % Subordinated debentures, due 2032 through 2037 32,259 3.11%-4.75 % Total long-term debt $ 72,259 |
Scheduled repayments of long-term debt | The following table presents the scheduled repayments of long-term debt as of December 31, 2018. 2019 $ — 2020 27,000 2021 — 2022 — 2023 — Thereafter 32,436 Total $ 59,436 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Income Taxes Tables Abstract | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense for the years ended December 31, 2018 and 2017 consists of the following: For the Years Ended December 31, 2018 2017 2016 Current income tax expense (In thousands) Federal $ 12,114 3,764 6,312 State 2,185 971 736 14,299 4,735 7,048 Deferred income tax expense (benefit) Federal (1,219 ) 7,792 770 State (311 ) 195 30 Deferred tax revaluation related to the 2017 Tax Act — 239 — (1,530 ) 8,226 800 Total income tax expense $ 12,769 12,961 7,848 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation from expected Federal tax expense to actual income tax expense for the years ended December 31, 2018 and 2017 using the base federal tax rates of 21% and 35%, respectively follows: For the Years Ended December 31, 2018 2017 2016 (In thousands) Computed federal income taxes $ 13,112 14,534 8,896 State income tax, net of federal benefit 1,674 758 424 Tax exempt interest (1,378 ) (1,667 ) (778 ) Stock based compensation (331 ) (1,514 ) (471 ) Deferred tax revaluation related to the 2017 Tax Act — 239 — Other, net (308 ) 611 (223 ) Total income tax expense $ 12,769 12,961 7,848 |
Schedule of Deferred Tax Assets and Liabilities | The following is a summary of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 31, 2018 and 2017: At December 31, 2018 2017 Deferred tax assets: (In thousands) Loan loss reserve $ 8,808 10,251 Unrealized loss on available-for-sale securities 109 — Net operating loss and credit carryforwards 2,943 3,975 Stock based compensation 808 483 Other 823 915 13,491 15,624 Valuation allowance (618 ) (958 ) Total gross deferred tax assets 12,873 14,666 Deferred tax liabilities: Depreciation (3,393 ) (2,905 ) Core deposit intangible (2,932 ) (3,591 ) Goodwill (240 ) (181 ) Transaction costs — (2,411 ) Unrealized gain on securities available-for-sale — (1,551 ) Unrealized gain on interest rate swap — (146 ) Other (522 ) (1,445 ) Total gross deferred tax liabilities (7,087 ) (12,230 ) Deferred tax assets, net $ 5,786 2,436 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments (in thousands), by year and in the aggregate, under non-cancellable operating leases with initial or remaining terms in excess of one year are as follows: Year 1 $ 2,537 Year 2 2,332 Year 3 1,950 Year 4 1,868 Year 5 1,738 After Year 5 14,165 Total $ 24,590 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stock-based Compensation | |
Schedule of Share-based Compensation, Stock Options Activity | Activity in the Company’s stock option plans is summarized in the following table. All information has been retroactively adjusted for stock splits. At and For the Years Ended December 31, 2018 2017 Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price Outstanding at beginning of year 312,382 $ 12.01 238,180 $ 8.69 Granted 1,000 40.91 22,990 30.90 Acquired in a merger — — 56,337 20.73 Exercised (7,596 ) 18.71 (600 ) 16.19 Forfeited or expired (8,355 ) 40.79 (4,525 ) 41.26 Outstanding at end of year 297,431 $ 11.12 312,382 $ 12.01 Options exercisable at end of year 263,114 $ 9.48 236,911 $ 9.55 |
Schedule of Share-based Compensation, Activity | Information pertaining to options outstanding at December 31, 2018 and 2017, is as follows: At December 31, 2018 Options Outstanding Options Exercisable Weighted Avg. Weighted Weighted Number Remaining Years Average Number Average Exercise Prices Outstanding Contractual Life Exercise Price Outstanding Exercise Price $4.17 124,930 4.3 $ 4.17 124,930 $ 4.17 $8.14 10,127 3.2 8.14 10,127 8.14 $8.54 6,576 5.3 8.54 6,576 8.54 $9.97 - $10.66 7,596 2.2 10.52 7,596 10.52 $11.58 - $12.88 58,796 6.0 11.66 58,796 11.66 $15.82 - $16.83 54,781 7.0 16.56 36,791 16.54 $20.97 - $21.54 10,635 0.6 21.21 10,635 21.21 $30.90 22,990 8.1 30.90 7,663 30.90 $34.10 - $38.03 — — — — — $40.91 1,000 2.2 40.91 — — $42.28 - $42.56 — — — — — 297,431 5.2 $ 11.12 263,114 $ 9.48 At December 31, 2017 Options Outstanding Options Exercisable Weighted Avg. Weighted Weighted Number Remaining Years Average Number Average Exercise Prices Outstanding Contractual Life Exercise Price Outstanding Exercise Price $4.17 124,930 5.3 $ 4.17 124,930 $ 4.17 $8.14 10,127 4.2 8.14 10,127 8.14 $8.54 6,576 6.3 8.54 6,576 8.54 $9.97 - $11.02 12,660 3.8 10.72 12,660 10.72 $11.58 - $12.88 58,796 6.7 11.65 40,295 11.69 $15.82 - $16.83 54,781 8.0 16.56 20,801 16.49 $20.97 - $21.54 10,635 1.6 21.21 10,635 21.21 $30.90 22,990 9.1 30.90 — — $34.10 - $38.03 5,570 0.6 36.24 5,570 36.24 $42.28 - $42.56 5,317 0.1 42.36 5,317 42.36 312,382 5.9 $ 12.01 236,911 $ 9.55 |
Schedule of valuation and related assumption for option program | The fair value of options is estimated at the date of grant using the Black-Scholes option pricing model and expensed over the options’ vesting period. The following weighted-average assumptions were used in valuing option issued during 2018 and 2017: 2018 2017 Dividend yield 0.5 % 1 % Expected life 6 years 6 years Expected volatility 44 % 32 % Risk-free interest rate 2.76 % 2.17 % |
Schedule of Share-based Compensation, Restricted Stock Activity | Nonvested restricted stock for the year ended December 31, 2018 and 2017 is summarized in the following table. At and For the Years Ended December 31, 2018 2017 Weighted Weighted Average Average Grant- Date Grant- Date Restricted stock grants Shares Fair Value Shares Fair Value Nonvested at January 1 134,302 $ 8.87 211,907 $ 7.55 Granted 47,039 39.32 93,556 33.67 Vested (52,925 ) 20.85 (167,461 ) 20.61 Forfeited (10,450 ) 37.09 (3,700 ) 28.93 Nonvested at December 31 117,966 $ 13.14 134,302 $ 28.40 |
Vesting schedule of Restricted Stock Option Shares | The vesting schedule of these shares as of December 31, 2018 is as follows: Shares 2019 36,983 2020 58,349 2021 17,221 2022 5,413 2023 — Thereafter — 117,966 |
Schedule of Nonvested Restricted Stock Units | Nonvested RSUs for the years ended December 31, 2018 and 2017 is summarized in the following table. At and For the Years Ended December 31, 2018 December 31, 2017 Weighted Weighted Average Average Grant- Date Grant- Date Restricted stock units Shares Fair Value Shares Fair Value Nonvested at January 1 17,273 $ 30.90 20,170 $ 16.31 Granted 22,112 38.77 18,773 30.90 Vested (17,273 ) 30.90 (18,870 ) 16.31 Forfeited (600 ) 38.77 (2,800 ) 24.13 Nonvested at December 31 21,512 $ 38.77 17,273 $ 30.90 |
ESTIMATED FAIR VALUE OF FINAN_2
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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) December 31, 2018 Available-for-sale investment securities: Municipal securities $ — 213,714 — US government agencies — 25,277 — Collateralized loan obligations — 230,699 — Corporate securities — 6,960 — Mortgage-backed securities: Agency — 197,520 — Non-agency — 157,531 — Trust preferred securities — 11,100 — Loans held for sale — 16,972 — Derivative assets: Cash flow hedges: Interest rate swaps 1,232 — — Non-hedging derivatives: Interest rate swaps 1,198 — — Mortgage loan interest rate lock commitments — 1,199 — Mortgage loan forward sales commitments — 403 — Derivative liabilities: Non-hedging derivatives: Interest rate swaps 937 — — Mortgage-backed securities forward sales commitments — 295 — 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 — |
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 December 31, 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) December 31, 2018 Impaired loans: Loans secured by real estate: One-to-four family $ — — 4,511 Home equity — — 249 Commercial real estate — — 3,825 Construction and development — — 1,351 Consumer loans — — 31 Commercial business loans — — 2,829 Real estate owned: One-to-four family — — 204 Construction and development — — 1,330 Mortgage servicing rights — — 40,880 Total $ — — 55,210 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 December 31, 2018 and December 31, 2017, the significant unobservable inputs used in the fair value measurements were as follows: December 31, 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 comparable properties sales commissions and other holding costs Real estate owned Appraisal Value/ Appraisals and or sales of Appraisals discounted 10% to 20% for Comparison Sales comparable properties sales commissions and other holding costs Mortgage Servicing Rights Discounted cash flows Comparable sales Weighted average discount rates averaging 11.5% - 13% in each period presented Weighted average prepayment rates averaging 6% - 7% in 2018 Weighted average prepayment rates averaging 8% - 9% in 2017 |
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 December 31, 2018 and December 31, 2017 are as follows: At December 31, 2018 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 28,857 28,857 28,857 — — Interest-bearing cash 33,276 33,276 33,276 — — Securities available-for-sale 842,801 842,801 — 842,801 — Federal Home Loan Bank stock 21,696 21,696 — — 21,696 Other investments 3,450 3,450 — — 3,450 Derivative assets 4,032 4,032 2,430 1,602 — Loans held for sale 16,972 16,972 — 16,972 — Loans receivable, net 2,509,873 2,506,384 — — 2,506,384 Accrued interest receivable 13,494 13,494 — 13,494 — Real estate acquired through foreclosure 1,534 1,534 — — 1,534 Mortgage servicing rights 32,933 40,880 — — 40,880 Financial liabilities: Deposits 2,718,193 2,721,885 — 2,721,885 — Short-term borrowed funds 405,500 405,532 — 405,532 — Long-term debt 59,436 61,853 — 61,853 — Derivative liabilities 1,232 1,232 937 295 — Drafts outstanding 8,129 8,129 — 8,129 — Advances from borrowers for insurance and taxes 4,100 4,100 — 4,100 — Accrued interest payable 1,591 1,591 — 1,591 — Dividends payable to stockholders 1,576 1,576 — 1,576 — 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 December 31, 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 $ 379,170 — 422,065 — Standby letters of credit 13,797 — 4,449 — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure Earnings Per Share Tables Abstract | |
Schedule of reconciliation of average shares outstanding | The following is a summary of the reconciliation of average shares outstanding for the years ended December 31, 2018, 2017, and 2016: December 31, 2018 2017 2016 Basic Diluted Basic Diluted Basic Diluted Weighted average shares outstanding 21,756,595 21,756,595 16,317,501 16,317,501 12,080,128 12,080,128 Effect of dilutive securities — 216,262 — 232,856 — 272,118 Average shares outstanding 21,756,595 21,972,857 16,317,501 16,550,357 12,080,128 12,352,246 The following is a summary of the reconciliation of shares issued and outstanding and unvested restricted stock awards as of December 31, 2018, 2017, and 2016 used for computing book value and tangible book value per share: As of December 31, 2018 2017 2016 Issued and outstanding shares 22,387,009 21,022,202 12,548,328 Less nonvested restricted stock awards (117,966 ) (134,302 ) (211,907 ) Period end shares used for tangible book value 22,269,043 20,887,900 12,336,421 |
CAPITAL REQUIREMENTS AND OTHE_2
CAPITAL REQUIREMENTS AND OTHER RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Capital Requirements And Other Restrictions | |
Schedule of actual and required capital amounts and ratios | The actual capital amounts and ratios as well as minimum amounts for each regulatory defined category for the Company and the Bank at December 31, 2018 and 2017 are as follows: To Be Well Minimum Capital Minimum Capital Capitalized Under Required - Basel III Required - Basel III Prompt Corrective Actual Phase-In Schedule Fully Phased-In Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2018 Carolina Financial Corporation CET1 capital (to risk weighted assets) $ 431,568 15.19 % 181,094 6.375 % 198,848 7.000 % N/A N/A Tier 1 capital (to risk weighted assets) 462,888 16.29 % 223,704 7.875 % 241,459 8.500 % N/A N/A Total capital (to risk weighted assets) 477,351 16.80 % 280,518 9.875 % 298,273 10.500 % N/A N/A Tier 1 capital (to total average assets) 462,888 13.01 % 142,270 4.000 % 142,270 4.000 % N/A N/A CresCom Bank CET1 capital (to risk weighted assets) 454,181 16.00 % 180,948 6.375 % 198,688 7.000 % 184,496 6.50 % Tier 1 capital (to risk weighted assets) 454,181 16.00 % 223,524 7.875 % 241,264 8.500 % 227,072 8.00 % Total capital (to risk weighted assets) 468,644 16.51 % 280,292 9.875 % 298,032 10.500 % 283,840 10.00 % Tier 1 capital (to total average assets) 454,181 12.76 % 142,392 4.000 % 142,392 4.000 % 177,990 5.00 % To Be Well Minimum Capital Minimum Capital Capitalized Under Required - Basel III Required - Basel III Prompt Corrective Actual Phase-In Schedule Fully Phased-In Action Regulations Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2017 Carolina Financial Corporation CET1 capital (to risk weighted assets) $ 328,511 12.42 % 152,145 5.750 % 185,220 7.000 % N/A N/A Tier 1 capital (to risk weighted assets) 359,654 13.59 % 191,835 7.250 % 224,910 8.500 % N/A N/A Total capital (to risk weighted assets) 371,133 14.03 % 244,755 9.250 % 277,830 10.500 % N/A N/A Tier 1 capital (to total average assets) 359,654 12.38 % 116,198 4.000 % 116,198 4.000 % N/A N/A CresCom Bank CET1 capital (to risk weighted assets) 355,024 13.43 % 152,035 5.750 % 185,086 7.000 % 171,865 6.50 % Tier 1 capital (to risk weighted assets) 355,024 13.43 % 191,696 7.250 % 224,747 8.500 % 211,527 8.00 % Total capital (to risk weighted assets) 366,503 13.86 % 244,578 9.250 % 277,629 10.500 % 264,408 10.00 % Tier 1 capital (to total average assets) 355,024 12.21 % 116,312 4.000 % 116,312 4.000 % 145,390 5.00 % |
SUPPLEMENTAL SEGMENT INFORMAT_2
SUPPLEMENTAL SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2018, 2017, and 2016: Community Mortgage For the Year Ended December 31, 2018 Banking Banking Other Eliminations Total (In thousands) Interest income $ 159,483 1,841 56 (322 ) 161,058 Interest expense 25,227 414 2,025 (418 ) 27,248 Net interest income (expense) 134,256 1,427 (1,969 ) 96 133,810 Provision for loan losses 2,034 25 — — 2,059 Noninterest income from external customers 18,680 21,106 110 — 39,896 Intersegment noninterest income 966 99 — (1,065 ) — Noninterest expense 89,459 18,631 1,117 1 109,208 Intersegment noninterest expense — 960 6 (966 ) — Income (loss) before income taxes 62,409 3,016 (2,982 ) (4 ) 62,439 Income tax expense (benefit) 12,785 701 (716 ) (1 ) 12,769 Net income (loss) $ 49,624 2,315 (2,266 ) (3 ) 49,670 Assets $ 3,786,360 84,335 610,167 (690,114 ) 3,790,748 Loans receivable, net 2,494,421 30,879 — (15,427 ) 2,509,873 Loans held for sale 1,450 15,522 — — 16,972 Deposits 2,724,920 — — (6,727 ) 2,718,193 Borrowed funds 432,500 14,951 32,436 (14,951 ) 464,936 Community Mortgage For the Year Ended December 31, 2017 Banking Banking Other Eliminations Total (In thousands) Interest income $ 93,319 1,743 31 (6 ) 95,087 Interest expense 12,100 172 1,152 (171 ) 13,253 Net interest income (expense) 81,219 1,571 (1,121 ) 165 81,834 Provision for loan losses 779 — — — 779 Noninterest income from external customers 14,262 19,654 — — 33,916 Intersegment noninterest income 966 67 — (1,033 ) — Noninterest expense 55,900 16,614 931 — 73,445 Intersegment noninterest expense — 966 1 (967 ) — Income (loss) before income taxes 39,768 3,712 (2,053 ) 99 41,526 Income tax expense (benefit) 12,929 1,262 (1,267 ) 37 12,961 Net income (loss) $ 26,839 2,450 (786 ) 62 28,565 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 Community Mortgage For the Year Ended December 31, 2016 Banking Banking Other Eliminations Total (In thousands) Interest income $ 59,242 1,591 17 64 60,914 Interest expense 8,149 93 603 (92 ) 8,753 Net interest income (expense) 51,093 1,498 (586 ) 156 52,161 Provision for loan losses (36 ) 36 — — — Noninterest income from external customers 8,389 20,908 — — 29,297 Intersegment noninterest income 966 46 — (1,012 ) — Noninterest expense 38,260 16,938 842 — 56,040 Intersegment noninterest expense 966 1 — (967 ) — Income (loss) before income taxes 21,258 5,477 (1,428 ) 111 25,418 Income tax expense (benefit) 6,384 1,948 (526 ) 42 7,848 Net income (loss) $ 14,874 3,529 (902 ) 69 17,570 Assets $ 1,678,541 78,315 179,681 (252,801 ) 1,683,736 Loans receivable, net 1,151,704 27,433 — (11,559 ) 1,167,578 Loans held for sale 2,159 29,410 — — 31,569 Deposits 1,263,030 — — (4,770 ) 1,258,260 Borrowed funds 226,000 10,990 15,465 (10,990 ) 241,465 |
SUMMARIZED QUARTERLY INFORMAT_2
SUMMARIZED QUARTERLY INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2018 Quarter Ended (unaudited) 4th 3rd 2nd 1st Quarter Quarter Quarter Quarter (In thousands) Interest income $ 42,919 40,985 39,477 37,676 Interest expense 8,027 7,102 6,572 5,545 Net interest income 34,892 33,883 32,905 32,131 Provision for loan losses 750 750 559 — Noninterest income 8,520 10,300 11,027 10,048 Noninterest expense 23,237 24,002 24,371 37,598 Income before income taxes 19,425 19,431 19,002 4,581 Income tax expense 3,981 4,227 4,036 525 Net income $ 15,444 15,204 14,966 4,056 Earnings per common share: Basic $ 0.69 $ 0.67 $ 0.70 $ 0.19 Diluted $ 0.68 $ 0.66 $ 0.70 $ 0.19 2017 Quarter Ended (unaudited) 4th 3rd 2nd 1st Quarter Quarter Quarter Quarter (In thousands) Interest income $ 32,368 22,926 22,123 17,670 Interest expense 4,451 3,377 3,025 2,400 Net interest income 27,917 19,549 19,098 15,270 Provision for loan losses 779 — — — Noninterest income 10,005 7,875 8,805 7,231 Noninterest expense 26,513 15,456 15,890 15,586 Income before income taxes 10,630 11,968 12,013 6,915 Income tax expense 4,302 3,975 2,673 2,011 Net income $ 6,328 7,993 9,340 4,904 Earnings per common share: Basic $ 0.33 $ 0.50 $ 0.58 $ 0.35 Diluted $ 0.33 $ 0.49 $ 0.58 $ 0.35 |
PARENT COMPANY FINANCIAL INFO_2
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Parent Company Financial Information | |
Schedule of Condensed Income Statement | Carolina Financial Corporation Condensed Statements of Operations For the Years Ended December 31, 2018 2017 2016 (In thousands) Dividend income from banking subsidiary $ — — — Interest income 56 31 18 Total income 56 31 18 Interest expense 2,025 1,152 599 General and administrative expenses 1,013 932 847 Total expenses 3,038 2,084 1,446 (Loss) before income taxes and equity in undistributed earnings of subsidiaries (2,982 ) (2,053 ) (1,428 ) Income tax benefit (716 ) (1,267 ) (526 ) (Loss) before equity in undistributed earnings of subsidiaries (2,266 ) (786 ) (902 ) Equity in undistributed earnings of CresCom Bank 51,936 29,351 18,472 Equity in undistributed losses of Carolina Services — — — Total equity in undistributed earnings of subsidiaries 51,936 29,351 18,472 Net income $ 49,670 28,565 17,570 |
Schedule of Condensed Balance Sheet | Carolina Financial Corporation Condensed Balance Sheets At December 31, 2018 2017 Assets: (In thousands) Cash and cash equivalents $ 5,371 4,919 Investment in bank subsidiary 597,899 501,867 Investment in unconsolidated statutory business trusts 1,116 1,116 Securities available-for-sale 1 501 Other assets 7,047 982 Total assets $ 611,434 509,385 Liabilities and stockholders’ equity: Accrued expenses and other liabilities 3,713 1,745 Long-term debt 32,436 32,259 Stockholders’ equity 575,285 475,381 Total liabilities and stockholders’ equity 611,434 509,385 |
Schedule of Condensed Cash Flow Statement | Carolina Financial Corporation For the Years Ended December 31, 2018 2017 2016 (In thousands) Cash flows from operating activities: Net income $ 49,670 28,565 17,570 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings in subsidiaries (51,936 ) (29,351 ) (18,472 ) Stock-based compensation 2,700 1,658 1,271 Vested stock awards surrendered in cashless exercise (774 ) (1,789 ) (482 ) Decrease (increase) in other assets (5,423 ) 1,053 (232 ) Increase (decrease) in other liabilities 1581 (3,456 ) (163 ) Net cash (used in) provided by operating activities (4,182 ) (3,320 ) (508 ) Cash flows from investing activities: Equity contribution in bank subsidiaries (60,000 ) (35,000 ) (15,966 ) Equity contribution in non-bank subsidiaries — — — Sales and maturities of available for sale securities 500 — — Sale or repayment of investments to subsidiaries 12,000 — — Net cash (paid) received from acquisitions — (6,016 ) 7,734 Net cash (used in) investing activities (47,500 ) (41,016 ) (8,232 ) Cash flows from financing activities: Issuance of common stock, net of offering expenses 63,022 47,671 — Stock options exercised 56 10 27 Stock repurchase plan, net of commissions (5,381 ) — — Excess tax benefit in connection with equity awards — 439 454 Cash dividends paid on common stock (5,563 ) (2,371 ) (1,475 ) Net cash provided by (used in) financing activities 52,134 45,749 (994 ) Net increase (decrease) in cash and cash equivalents 452 1,413 (9,734 ) Cash and cash equivalents, beginning of year 4,919 3,506 13,240 Cash and cash equivalents, end of year $ 5,371 4,919 3,506 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Jan. 23, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Value of common stock issued to company | $ 224 | $ 210 | |
Core deposit intangibles, Useful Life | 10 years | ||
Subsequent Event [Member] | |||
Dividend Declared to Stockholders [Per Share] | $ .08 | ||
Dividend Declared, Record Date | Mar. 15, 2019 | ||
Dividend Declared, Payable Date | Apr. 5, 2019 | ||
Statutory Business Trusts [Member] | |||
Principal amount owed | $ 36,000 | ||
Principal assets of the Trusts | 34,900 | ||
Value of common stock issued to company | 1,116 | ||
Reserved Cash and cash equivalents Balance | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Summary Of Significant Accounting Policies Details Abstract | |||
Mortgage Loans on Real Estate | $ 1,892 | $ 2,880 | $ 3,876 |
Losses paid | (88) | (21) | |
Recoveries | 25 | ||
Recovery of mortgage repurchase losses | (600) | (900) | (1,000) |
Mortgage Loans on Real Estate | $ 1,292 | $ 1,892 | $ 2,880 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Nov. 01, 2017 | Mar. 18, 2017 | Jun. 11, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Common stock issued | $ 224 | $ 210 | ||||
Common stock issued | 22,387,009 | 21,022,202 | 12,548,328 | |||
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 | |||||
Congaree Bancshares, Inc. [Member] | ||||||
Common stock issued | $ 8,557 | |||||
Cash payments to common stockholders | 5,724 | |||||
Preferred shares assumed and redeemed at par | 1,564 | |||||
Fair value of Congaree stock options assumed - paid out in cash | 439 | |||||
Total consideration paid | $ 16,284 | |||||
Common stock issued | 508,910 |
BUSINESS COMBINATIONS (Details
BUSINESS COMBINATIONS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 01, 2017 | Mar. 18, 2017 | Jun. 11, 2016 | |||
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 | (59) | [1] | ||||||
Federal Home Loan Bank stock | ||||||||
Loans held for sale | ||||||||
Loans receivable | (24,620) | [2] | (10,559) | [3] | (4,111) | [3] | ||
Allowance for loan losses | 9,495 | [4] | 3,198 | [5] | 1,112 | [6] | ||
Premises and equipment | 1,500 | [7] | 4,202 | [8] | 38 | [9] | ||
Foreclosed assets | (556) | [10] | (250) | [11] | ||||
Core deposit intangible | 11,090 | [12] | 4,480 | [13] | 1,104 | [13] | ||
Deferred tax asset | 238 | [14] | (1,434) | [15] | 915 | [15] | ||
Other assets | (3,417) | [16] | (241) | [17] | (152) | [17] | ||
Total assets acquired | (6,270) | (354) | (1,403) | |||||
Business Combination, Liabilities [Abstract] | ||||||||
Deposits | 78 | [18] | 200 | [19] | 98 | [20] | ||
Borrowings | (1,439) | [21] | (3,510) | [19] | ||||
Other liabilities | (284) | [22] | 512 | [23] | ||||
Total liabilities assumed | (1,645) | (2,798) | 98 | |||||
As Recorded by the Company [Member] | ||||||||
Assets | ||||||||
Cash and cash equivalents | 66,109 | 42,187 | 11,394 | |||||
Securities | 186,038 | 121,374 | 9,394 | |||||
Federal Home Loan Bank stock | 1,593 | |||||||
Loans held for sale | 1,282 | |||||||
Loans receivable | 759,159 | 194,650 | 74,601 | |||||
Allowance for loan losses | ||||||||
Premises and equipment | 12,261 | 8,130 | 2,750 | |||||
Foreclosed assets | 1,366 | 42 | 1,460 | |||||
Core deposit intangible | 12,500 | 4,480 | 1,104 | |||||
Deferred tax asset | 4,199 | 2,397 | 2,728 | |||||
Other assets | 30,135 | 11,126 | 790 | |||||
Total assets acquired | 1,074,642 | 384,491 | 104,221 | |||||
Business Combination, Liabilities [Abstract] | ||||||||
Deposits | 952,651 | 311,066 | 89,325 | |||||
Borrowings | 25,371 | 40,202 | 2,500 | |||||
Other liabilities | 8,231 | 7,598 | 378 | |||||
Total liabilities assumed | 986,253 | 358,866 | 92,203 | |||||
Net assets acquired | 88,389 | 25,625 | 12,018 | |||||
Total consideration paid | 178,694 | 58,645 | 16,284 | |||||
Goodwill | $ 90,305 | 33,020 | 4,266 | |||||
Congaree Bancshares, Inc. [Member] | ||||||||
Assets | ||||||||
Cash and cash equivalents | 11,394 | |||||||
Securities | 9,453 | |||||||
Loans receivable | 78,712 | |||||||
Allowance for loan losses | (1,112) | |||||||
Premises and equipment | 2,712 | |||||||
Foreclosed assets | 1,710 | |||||||
Core deposit intangible | ||||||||
Deferred tax asset | 1,813 | |||||||
Other assets | 942 | |||||||
Total assets acquired | 105,624 | |||||||
Business Combination, Liabilities [Abstract] | ||||||||
Deposits | 89,227 | |||||||
Borrowings | 2,500 | |||||||
Other liabilities | 378 | |||||||
Total liabilities assumed | $ 92,105 | |||||||
Greer Bancshares [Member] | ||||||||
Assets | ||||||||
Cash and cash equivalents | 42,187 | |||||||
Securities | 121,374 | |||||||
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 | |||||||
Business Combination, Liabilities [Abstract] | ||||||||
Deposits | 310,866 | |||||||
Borrowings | 43,712 | |||||||
Other liabilities | 7,086 | |||||||
Total liabilities assumed | $ 361,664 | |||||||
[1] | Adjustment reflects opening fair value of securities portfolio, which was established as the new book basis of the portfolio. | |||||||
[2] | Adjustment represents the amount necessary to adjust loans to their fair value due to interest rate and credit factors. | |||||||
[3] | Adjustment reflects the fair value adjustment based on the Company's assessment. | |||||||
[4] | Adjustment reflects the elimination of First South's historical allowance for loan losses. | |||||||
[5] | Adjustment reflects the elimination of Greer's historical allowance for loan losses. | |||||||
[6] | Adjustment reflects the elimination of Congaree's historical allowance for loan losses. | |||||||
[7] | Adjustment reflects fair value adjustments on acquired branch and administrative offices based from the Company's assessment. | |||||||
[8] | Adjustment reflects fair value adjustments on acquired branch and administrative offices based on the Company's assessment. | |||||||
[9] | Adjustment reflects fair value adjustments on acquired branch and administrative offices based on the Company's assessment. | |||||||
[10] | Adjustment reflects the impact of acquisition accounting fair value adjustments. | |||||||
[11] | Adjustment reflects the fair value adjustment based on the Company's evaluation of the foreclosed assets | |||||||
[12] | Adjustment reflects the fair value adjustment to record the estimated core deposit intangible based on the Company's assessment. | |||||||
[13] | Adjustment reflects the fair value adjustment to record the estimated core deposit intangible based on the Company's assessment. | |||||||
[14] | Adjustment reflects the tax impact of acquisition accounting fair value adjustments. | |||||||
[15] | Adjustment reflects the tax impact of acquisition accounting fair value adjustments. | |||||||
[16] | Adjustment reflects the fair value adjustment based on the Company's evaluation of acquired other assets. | |||||||
[17] | Adjustment reflects the fair value adjustment based on the Company's evaluation of acquired other assets. | |||||||
[18] | Adjustment represents the fair value adjustment due to interest rate factors. | |||||||
[19] | Adjustments reflects the fair value adjustment based on Company's third party valuation report. | |||||||
[20] | Adjustment reflects the fair value adjustment based on the Company's assessment. | |||||||
[21] | Adjustment represents the fair value adjustment due to interest rate factors. | |||||||
[22] | Adjustment reflects the fair value adjustment based on the Company's evaluation of acquired other liabilities. | |||||||
[23] | Adjustment reflects the fair value adjustmentbased on the Company's evaluation of acquired other liabilities. |
BUSINESS COMBINATIONS (Detail_2
BUSINESS COMBINATIONS (Details 3) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net interest income | $ 34,892 | $ 33,883 | $ 32,905 | $ 32,131 | $ 27,917 | $ 19,549 | $ 19,098 | $ 15,270 | $ 133,810 | $ 81,834 | $ 52,161 | |
Net income | $ 15,444 | $ 15,204 | $ 14,966 | $ 4,056 | $ 6,328 | $ 7,993 | $ 9,340 | $ 4,904 | $ 49,670 | $ 28,565 | $ 17,570 | |
Weighted average shares outstanding | ||||||||||||
Basic | 21,756,595 | 16,317,501 | 12,080,128 | |||||||||
Diluted | 21,972,857 | 16,550,357 | 12,352,246 | |||||||||
Earnings per common share: | ||||||||||||
Basic | $ 0.69 | $ 0.67 | $ 0.70 | $ 0.19 | $ 0.33 | $ 0.50 | $ 0.58 | $ 0.35 | $ 2.28 | $ 1.75 | $ 1.45 | |
Diluted | $ 0.68 | $ 0.66 | $ 0.70 | $ 0.19 | $ 0.33 | $ 0.49 | $ 0.58 | $ 0.35 | $ 2.26 | $ 1.73 | $ 1.42 | |
Supplemental Pro Forma Information [Member] | ||||||||||||
Net interest income | [1] | $ 122,739 | $ 108,519 | |||||||||
Net income | [1] | $ 43,435 | $ 36,336 | |||||||||
Weighted average shares outstanding | ||||||||||||
Basic | [2] | 20,724,990 | 18,917,650 | |||||||||
Diluted | [2] | 20,957,846 | 19,189,768 | |||||||||
Earnings per common share: | ||||||||||||
Basic | $ 2.10 | $ 1.92 | ||||||||||
Diluted | $ 2.07 | $ 1.89 | ||||||||||
[1] | Supplemental pro forma net income includes the impact of certain fair value adjustments. Supplemental pro forma net income does not include assumptions on cost saves or impact of merger related expenses. | |||||||||||
[2] | Weighted average shares outstanding include the full effect of the common stock issued in connection with the acquisitions as of the earliest reporting date. |
CORE DEPOSIT INTANGIBLES (Detai
CORE DEPOSIT INTANGIBLES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Core Deposit Intangibles Details Abstract | |||
Year 1 | $ 2,910 | ||
Year 2 | 2,682 | ||
Year 3 | 2,432 | ||
Year 4 | 2,200 | ||
Year 5 | 1,971 | ||
Thereafter | 4,267 | ||
Total | 16,462 | ||
Amortization Expenses | $ 3,139 | $ 1,037 | $ 407 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available For Sale | ||
Amortized Cost | $ 844,461 | $ 736,975 |
Unrealized Gains | 6,024 | 10,437 |
Unrealized Losses | (7,684) | (4,173) |
Securities available for sale | 842,801 | 743,239 |
Municipal securities [Member] | ||
Available For Sale | ||
Amortized Cost | 212,215 | 240,904 |
Unrealized Gains | 2,768 | 6,790 |
Unrealized Losses | (1,269) | (344) |
Securities available for sale | 213,714 | 247,350 |
US government agencies [Member] | ||
Available For Sale | ||
Amortized Cost | 24,772 | 11,983 |
Unrealized Gains | 505 | 34 |
Unrealized Losses | (9) | |
Securities available for sale | 25,277 | 12,008 |
Collateralized loan obligations [Member] | ||
Available For Sale | ||
Amortized Cost | 231,172 | 128,080 |
Unrealized Gains | 119 | 581 |
Unrealized Losses | (592) | (18) |
Securities available for sale | 230,699 | 128,643 |
Corporate securities [Member] | ||
Available For Sale | ||
Amortized Cost | 6,915 | 6,891 |
Unrealized Gains | 69 | 115 |
Unrealized Losses | (24) | |
Securities available for sale | 6,960 | 7,006 |
Mortgage-backed securities Agency [Member] | ||
Available For Sale | ||
Amortized Cost | 199,518 | 243,075 |
Unrealized Gains | 427 | 1,234 |
Unrealized Losses | (2,425) | (714) |
Securities available for sale | 197,520 | 243,595 |
Mortgage-backed securities Non-agency [Member] | ||
Available For Sale | ||
Amortized Cost | 158,803 | 94,834 |
Unrealized Gains | 423 | 551 |
Unrealized Losses | (1,695) | (260) |
Securities available for sale | 157,531 | 95,125 |
Total mortgage-backed securities [Member] | ||
Available For Sale | ||
Amortized Cost | 358,321 | 337,909 |
Unrealized Gains | 850 | 1,785 |
Unrealized Losses | (4,120) | (974) |
Securities available for sale | 355,051 | 338,720 |
Asset-backed securities [Member] | ||
Available For Sale | ||
Amortized Cost | 11,066 | 11,208 |
Unrealized Gains | 1,713 | 1,132 |
Unrealized Losses | (1,679) | (2,828) |
Securities available for sale | $ 11,100 | $ 9,512 |
SECURITIES (Details 2)
SECURITIES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investment securities, Amortized Cost | ||
One to five years | $ 7,566 | |
Six to ten years | 123,883 | |
After ten years | 713,012 | |
Total | 844,461 | $ 736,975 |
Investment securities, Fair Value | ||
One to five years | 7,635 | |
Six to ten years | 124,586 | |
After ten years | 710,580 | |
Securities available for sale | $ 842,801 | $ 743,239 |
SECURITIES (Details 3)
SECURITIES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Gross realized gains and losses, Available-for-sale | ||
Proceeds | $ 135,681 | $ 173,727 |
Realized gains | 494 | 1,519 |
Realized losses | (2,440) | (586) |
Total investment securities (loss) gain, net | $ (1,946) | $ 933 |
SECURITIES (Details 4)
SECURITIES (Details 4) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | $ 248,279 | $ 177,905 |
Less than 12 Months, Fair Value | 246,790 | 177,000 |
Less than 12 Months, Unrealized Losses | (1,489) | (905) |
Greater than 12 Months, Amortized Cost | 231,866 | 39,495 |
Greater than 12 Months, Fair Value | 225,671 | 36,227 |
Greater than 12 Months, Unrealized Losses | (6,195) | (3,268) |
Total, Amortized Cost | 480,145 | 217,400 |
Total, Fair Value | 472,461 | 213,227 |
Total, Unrealized Losses | (7,684) | (4,173) |
Municipal securities [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 12,395 | 23,849 |
Less than 12 Months, Fair Value | 12,331 | 23,631 |
Less than 12 Months, Unrealized Losses | (64) | (218) |
Greater than 12 Months, Amortized Cost | 55,189 | 3,606 |
Greater than 12 Months, Fair Value | 53,984 | 3,480 |
Greater than 12 Months, Unrealized Losses | (1,205) | (126) |
Total, Amortized Cost | 67,584 | 27,455 |
Total, Fair Value | 66,315 | 27,111 |
Total, Unrealized Losses | (1,269) | (344) |
US government agencies [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 1,681 | |
Less than 12 Months, Fair Value | 1,672 | |
Less than 12 Months, Unrealized Losses | (9) | |
Greater than 12 Months, Amortized Cost | ||
Greater than 12 Months, Fair Value | ||
Greater than 12 Months, Unrealized Losses | ||
Total, Amortized Cost | 1,681 | |
Total, Fair Value | 1,672 | |
Total, Unrealized Losses | (9) | |
Collateralized loan obligations [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 146,913 | 23,000 |
Less than 12 Months, Fair Value | 146,344 | 22,982 |
Less than 12 Months, Unrealized Losses | (569) | (18) |
Greater than 12 Months, Amortized Cost | 5,000 | |
Greater than 12 Months, Fair Value | 4,977 | |
Greater than 12 Months, Unrealized Losses | (23) | |
Total, Amortized Cost | 151,913 | 23,000 |
Total, Fair Value | 151,321 | 22,982 |
Total, Unrealized Losses | (592) | (18) |
Corporate securities [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 2,980 | |
Less than 12 Months, Fair Value | 2,956 | |
Less than 12 Months, Unrealized Losses | (24) | |
Greater than 12 Months, Amortized Cost | ||
Greater than 12 Months, Fair Value | ||
Greater than 12 Months, Unrealized Losses | ||
Total, Amortized Cost | 2,980 | |
Total, Fair Value | 2,956 | |
Total, Unrealized Losses | (24) | |
Mortgage-backed securities Agency [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 14,615 | 107,501 |
Less than 12 Months, Fair Value | 14,450 | 107,011 |
Less than 12 Months, Unrealized Losses | (165) | (490) |
Greater than 12 Months, Amortized Cost | 120,325 | 17,484 |
Greater than 12 Months, Fair Value | 118,065 | 17,260 |
Greater than 12 Months, Unrealized Losses | (2,260) | (224) |
Total, Amortized Cost | 134,940 | 124,985 |
Total, Fair Value | 132,515 | 124,271 |
Total, Unrealized Losses | (2,425) | (714) |
Mortgage-backed securities Non-agency [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 71,376 | 21,874 |
Less than 12 Months, Fair Value | 70,709 | 21,704 |
Less than 12 Months, Unrealized Losses | (667) | (170) |
Greater than 12 Months, Amortized Cost | 43,138 | 9,889 |
Greater than 12 Months, Fair Value | 42,110 | 9,799 |
Greater than 12 Months, Unrealized Losses | (1,028) | (90) |
Total, Amortized Cost | 114,514 | 31,763 |
Total, Fair Value | 112,819 | 31,503 |
Total, Unrealized Losses | (1,695) | (260) |
Total mortgage-backed securities [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 85,991 | 129,375 |
Less than 12 Months, Fair Value | 85,159 | 128,715 |
Less than 12 Months, Unrealized Losses | (832) | (660) |
Greater than 12 Months, Amortized Cost | 163,463 | 27,373 |
Greater than 12 Months, Fair Value | 160,175 | 27,059 |
Greater than 12 Months, Unrealized Losses | (3,288) | (314) |
Total, Amortized Cost | 249,454 | 156,748 |
Total, Fair Value | 245,334 | 155,774 |
Total, Unrealized Losses | (4,120) | (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 | 8,214 | 8,516 |
Greater than 12 Months, Fair Value | 6,535 | 5,688 |
Greater than 12 Months, Unrealized Losses | (1,679) | (2,828) |
Total, Amortized Cost | 8,214 | 8,516 |
Total, Fair Value | 6,535 | 5,688 |
Total, Unrealized Losses | $ (1,679) | $ (2,828) |
SECURITIES (Details 5)
SECURITIES (Details 5) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Securities Details 7Abstract | ||
Community Reinvestment Act fund | $ 2,334 | $ 2,330 |
Investment in Statutory Business Trusts | 1,116 | 1,116 |
Total other investments | 3,450 | 3,446 |
Federal Home Loan Bank stock | 21,696 | 19,065 |
Non-marketable investments | $ 25,146 | $ 22,511 |
SECURITIES (Details Narrative)
SECURITIES (Details Narrative) $ in Thousands | Dec. 31, 2018USD ($)Item | Dec. 31, 2017USD ($)Item |
Disclosure Securities Details Abstract | ||
Available for Sale Securities pledged for FHLB advances | $ 84,300 | |
Available for Sale Securities pledged to secure public agency funds | $ 165,500 | $ 178,200 |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | Item | 214 | 135 |
DERIVATIVES (Details)
DERIVATIVES (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Asset derivatives, Fair value | $ 4,032 | $ 2,803 |
Notional Value, Assets | 184,812 | 216,985 |
Liability derivatives, Fair value | 1,232 | 156 |
Notional Value, Liability | 102,000 | 80,000 |
Interest rate swaps [Member] | ||
Asset derivatives, Fair value | 1,198 | 964 |
Notional Value, Assets | 50,000 | 50,000 |
Liability derivatives, Fair value | 937 | 95 |
Notional Value, Liability | 50,000 | 5,000 |
Interest rate swaps [Member] | Cash Flow Hedging [Member] | ||
Asset derivatives, Fair value | 1,232 | 644 |
Notional Value, Assets | 45,000 | 45,000 |
Mortgage loan interest rate lock commitments [Member] | ||
Asset derivatives, Fair value | 1,199 | 890 |
Notional Value, Assets | 76,571 | 98,584 |
Mortgage loan forward sales commitments [Member] | ||
Asset derivatives, Fair value | 403 | 305 |
Notional Value, Assets | 13,241 | 23,401 |
Mortgage-backed securities forward sales commitments [Member] | ||
Liability derivatives, Fair value | 295 | 61 |
Notional Value, Liability | $ 52,000 | $ 75,000 |
LOANS RECEIVABLE, NET (Details)
LOANS RECEIVABLE, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Total gross loans receivable | $ 2,524,336 | $ 2,319,528 | ||
Percentage of Total Loan | 1.00% | 1.00% | ||
Allowance for loan losses | $ 14,463 | $ 11,478 | $ 10,688 | $ 10,141 |
Total loans receivable, net | 2,509,873 | 2,308,050 | 1,167,578 | |
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 2,474,437 | $ 2,241,113 | ||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 100.00% | 100.00% | ||
Allowance for loan losses | $ 14,463 | $ 11,478 | ||
Purchased Non-Credit Impaired Loans and Nonacquired Loans, net | 2,459,974 | 2,229,635 | ||
Purchased Credit Impaired Loans | $ 49,899 | $ 78,415 | ||
Percentage of Purchased Credit Impaired Loans | 100.00% | 100.00% | ||
Consumer loans [Member] | ||||
Total gross loans receivable | $ 23,845 | $ 19,990 | ||
Percentage of Total Loan | 0.94% | 0.86% | ||
Allowance for loan losses | $ 352 | $ 79 | 80 | 27 |
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 23,792 | $ 19,895 | ||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 0.96% | 0.89% | ||
Purchased Credit Impaired Loans | $ 53 | $ 95 | ||
Percentage of Purchased Credit Impaired Loans | 0.11% | 0.12% | ||
Commercial business loans [Member] | ||||
Total gross loans receivable | $ 359,393 | $ 315,010 | ||
Percentage of Total Loan | 14.24% | 13.58% | ||
Allowance for loan losses | $ 2,940 | $ 2,840 | 2,805 | 2,100 |
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 351,194 | $ 297,754 | ||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 14.20% | 13.29% | ||
Purchased Credit Impaired Loans | $ 8,199 | $ 17,256 | ||
Percentage of Purchased Credit Impaired Loans | 16.43% | 22.01% | ||
Mortgage Receivables [Member] | One-to-four family [Member] | ||||
Total gross loans receivable | $ 732,717 | $ 665,774 | ||
Percentage of Total Loan | 29.03% | 28.70% | ||
Allowance for loan losses | $ 3,540 | $ 2,719 | 2,636 | 2,903 |
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 723,641 | $ 654,597 | ||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 29.24% | 29.21% | ||
Purchased Credit Impaired Loans | $ 9,077 | $ 11,177 | ||
Percentage of Purchased Credit Impaired Loans | 18.19% | 14.25% | ||
Mortgage Receivables [Member] | Home equity [Member] | ||||
Total gross loans receivable | $ 83,770 | $ 90,141 | ||
Percentage of Total Loan | 3.32% | 3.89% | ||
Allowance for loan losses | $ 203 | $ 168 | 197 | 151 |
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 83,717 | $ 89,961 | ||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 3.38% | 4.01% | ||
Purchased Credit Impaired Loans | $ 53 | $ 180 | ||
Percentage of Purchased Credit Impaired Loans | 0.11% | 0.23% | ||
Mortgage Receivables [Member] | Commercial real estate [Member] | ||||
Total gross loans receivable | $ 1,034,117 | $ 933,820 | ||
Percentage of Total Loan | 40.96% | 40.26% | ||
Allowance for loan losses | $ 5,097 | $ 3,986 | 3,344 | 3,402 |
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 1,004,420 | $ 891,469 | ||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 40.59% | 39.77% | ||
Purchased Credit Impaired Loans | $ 29,696 | $ 42,351 | ||
Percentage of Purchased Credit Impaired Loans | 59.51% | 54.01% | ||
Mortgage Receivables [Member] | Construction and development [Member] | ||||
Total gross loans receivable | $ 290,494 | $ 294,793 | ||
Percentage of Total Loan | 11.51% | 12.71% | ||
Allowance for loan losses | $ 1,969 | $ 1,201 | $ 1,132 | $ 1,138 |
Purchased Non-Credit Impaired Loans and Nonacquired Loans, gross | $ 287,673 | $ 287,437 | ||
Percentage of Total Purchased Non-Credit Impaired Loans and Nonacquired Loans | 11.63% | 12.83% | ||
Purchased Credit Impaired Loans | $ 2,821 | $ 7,356 | ||
Percentage of Purchased Credit Impaired Loans | 5.65% | 9.38% |
LOANS RECEIVABLE, NET (Details
LOANS RECEIVABLE, NET (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Loans Receivable Net | |||
Balance at beginning of period | $ 49,899 | $ 78,415 | |
Fair value of PCI loans | 86,732 | ||
Net reductions for payments, foreclosures, and accretion | (28,516) | (8,317) | |
Balance at end of period | 49,899 | 78,415 | |
Accretable yield, beginning of period | 12,536 | ||
Additions | 14,472 | ||
Accretion | (6,092) | (1,936) | |
Reclassification from nonaccretable balance, net | [1] | 8,147 | |
Other changes, net | [2] | 5,317 | |
Accretable yield, end of period | 19,908 | 12,536 | |
Variable rate loans | $ 942,348 | $ 807,748 | |
Variable rate loans (as a percentage) | 37.33% | 34.82% | |
Fixed rate loans | $ 1,581,988 | $ 1,511,780 | |
Fixed rate loans (as a percentage) | 62.67% | 65.18% | |
Total loans outstanding | $ 2,524,336 | $ 2,319,528 | |
Total loans outstanding (as a percentage) | 100.00% | 100.00% | |
[1] | Reclassifications from the nonaccretable balance in the year ended December 31, 2018 were driven by improvement in credit quality, primarily delinquencies. | ||
[2] | Other changes, net for the year ended December 31, 2018 include the impact of changes in expectations of cash flows, which may vary from period to period due to the impact of modifications and changes to prepayment assumptions, as well as the impact of changes in interest rates on variable rate loans. |
LOANS RECEIVABLE, NET (Detail_2
LOANS RECEIVABLE, NET (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | $ 11,478 | $ 10,688 | $ 10,141 |
Provision for Loan Losses | 2,059 | 779 | |
Charge-Offs | (872) | (272) | (264) |
Recoveries | 1,798 | 283 | 811 |
Ending Balance | 14,463 | 11,478 | 10,688 |
Consumer loans [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 79 | 80 | 27 |
Provision for Loan Losses | 488 | (27) | 82 |
Charge-Offs | (308) | (19) | (53) |
Recoveries | 93 | 45 | 24 |
Ending Balance | 352 | 79 | 80 |
Commercial business loans [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 2,840 | 2,805 | 2,100 |
Provision for Loan Losses | (70) | (84) | 585 |
Charge-Offs | (197) | (127) | |
Recoveries | 367 | 119 | 247 |
Ending Balance | 2,940 | 2,840 | 2,805 |
Unallocated [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 485 | 494 | 420 |
Provision for Loan Losses | (123) | (9) | 74 |
Charge-Offs | |||
Recoveries | |||
Ending Balance | 362 | 485 | 494 |
Mortgage Receivables [Member] | One-to-four family [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 2,719 | 2,636 | 2,903 |
Provision for Loan Losses | 905 | 332 | (647) |
Charge-Offs | (226) | (253) | (84) |
Recoveries | 142 | 4 | 464 |
Ending Balance | 3,540 | 2,719 | 2,636 |
Mortgage Receivables [Member] | Home equity [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 168 | 197 | 151 |
Provision for Loan Losses | 59 | (32) | 46 |
Charge-Offs | (31) | ||
Recoveries | 7 | 3 | |
Ending Balance | 203 | 168 | 197 |
Mortgage Receivables [Member] | Commercial real estate [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 3,986 | 3,344 | 3,402 |
Provision for Loan Losses | 1,120 | 611 | (58) |
Charge-Offs | (86) | ||
Recoveries | 77 | 31 | |
Ending Balance | 5,097 | 3,986 | 3,344 |
Mortgage Receivables [Member] | Construction and development [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 1,201 | 1,132 | 1,138 |
Provision for Loan Losses | (320) | (12) | (82) |
Charge-Offs | (24) | ||
Recoveries | 1,112 | 81 | 76 |
Ending Balance | $ 1,969 | $ 1,201 | $ 1,132 |
LOANS RECEIVABLE, NET (Detail_3
LOANS RECEIVABLE, NET (Details 4) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | $ 860 | $ 109 |
Loans Collectively Evaluated for Impairment | 13,603 | 11,369 |
Ending Balance | 14,463 | 11,478 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 14,791 | 8,983 |
Collectively Evaluated for Impairment | 2,459,646 | 2,232,130 |
Purchased Credit Impaired Loans | 49,899 | 78,415 |
Total | 2,524,336 | 2,319,528 |
Consumer loans [Member] | ||
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | ||
Loans Collectively Evaluated for Impairment | 352 | 79 |
Ending Balance | 352 | 79 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 31 | 26 |
Collectively Evaluated for Impairment | 23,761 | 19,869 |
Purchased Credit Impaired Loans | 53 | 95 |
Total | 23,845 | 19,990 |
Commercial business loans [Member] | ||
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | 24 | 16 |
Loans Collectively Evaluated for Impairment | 2,916 | 2,824 |
Ending Balance | 2,940 | 2,840 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 2,853 | 285 |
Collectively Evaluated for Impairment | 348,341 | 297,469 |
Purchased Credit Impaired Loans | 8,199 | 17,256 |
Total | 359,393 | 315,010 |
Unallocated [Member] | ||
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | ||
Loans Collectively Evaluated for Impairment | 362 | 485 |
Ending Balance | 362 | 485 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | ||
Purchased Credit Impaired Loans | ||
Total | ||
Mortgage Receivables [Member] | One-to-four family [Member] | ||
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | 176 | 64 |
Loans Collectively Evaluated for Impairment | 3,364 | 2,655 |
Ending Balance | 3,540 | 2,719 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 4,687 | 3,435 |
Collectively Evaluated for Impairment | 718,953 | 651,162 |
Purchased Credit Impaired Loans | 9,077 | 11,177 |
Total | 732,717 | 665,774 |
Mortgage Receivables [Member] | Home equity [Member] | ||
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | 29 | |
Loans Collectively Evaluated for Impairment | 203 | 139 |
Ending Balance | 203 | 168 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 249 | 108 |
Collectively Evaluated for Impairment | 83,468 | 89,853 |
Purchased Credit Impaired Loans | 53 | 180 |
Total | 83,770 | 90,141 |
Mortgage Receivables [Member] | Commercial real estate [Member] | ||
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | 145 | |
Loans Collectively Evaluated for Impairment | 4,952 | 3,986 |
Ending Balance | 5,097 | 3,986 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 5,105 | 4,811 |
Collectively Evaluated for Impairment | 999,316 | 886,658 |
Purchased Credit Impaired Loans | 29,696 | 42,351 |
Total | 1,034,117 | 933,820 |
Mortgage Receivables [Member] | Construction and development [Member] | ||
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | 515 | |
Loans Collectively Evaluated for Impairment | 1,454 | 1,201 |
Ending Balance | 1,969 | 1,201 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 1,866 | 318 |
Collectively Evaluated for Impairment | 285,807 | 287,119 |
Purchased Credit Impaired Loans | 2,821 | 7,356 |
Total | $ 290,494 | $ 294,793 |
LOANS RECEIVABLE, NET (Detail_4
LOANS RECEIVABLE, NET (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 9,062 | $ 6,552 | $ 8,925 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 5,729 | 2,431 | 1,896 |
Impaired Financing Receivable, Recorded Investment | 14,791 | 8,983 | 10,821 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 9,236 | 6,674 | 9,166 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 5,790 | 2,431 | 1,896 |
Impaired Financing Receivable, Unpaid Principal Balance | 15,026 | 9,105 | 11,062 |
Impaired Financing Receivable, Related Allowance | 860 | 109 | 157 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 5,331 | 5,750 | 6,943 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 4,436 | 2,412 | 1,869 |
Impaired Financing Receivable, Average Recorded Investment | 9,767 | 8,162 | 8,812 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 283 | 213 | 329 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 150 | 114 | 21 |
Impaired Financing Receivable, Interest Income, Accrual Method | 434 | 327 | 350 |
Consumer loans [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 31 | 26 | 24 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | |||
Impaired Financing Receivable, Recorded Investment | 31 | 26 | 24 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 31 | 26 | 24 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | |||
Impaired Financing Receivable, Unpaid Principal Balance | 31 | 26 | 24 |
Impaired Financing Receivable, Related Allowance | |||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 24 | 18 | 18 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | |||
Impaired Financing Receivable, Average Recorded Investment | 24 | 18 | 18 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 1 | 1 | 2 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | |||
Impaired Financing Receivable, Interest Income, Accrual Method | 1 | 1 | 2 |
Commercial business loans [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,697 | 113 | 258 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 156 | 172 | 9 |
Impaired Financing Receivable, Recorded Investment | 2,853 | 285 | 267 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,698 | 114 | 258 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 156 | 172 | 9 |
Impaired Financing Receivable, Unpaid Principal Balance | 2,854 | 286 | 267 |
Impaired Financing Receivable, Related Allowance | 24 | 16 | 9 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 983 | 41 | 292 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 161 | 188 | 9 |
Impaired Financing Receivable, Average Recorded Investment | 1,144 | 229 | 301 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 152 | 4 | 9 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 9 | 10 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 162 | 14 | 9 |
Mortgage Receivables [Member] | One-to-four family [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,083 | 2,725 | 4,125 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,604 | 710 | 543 |
Impaired Financing Receivable, Recorded Investment | 4,687 | 3,435 | 4,668 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 3,241 | 2,846 | 4,366 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,665 | 710 | 543 |
Impaired Financing Receivable, Unpaid Principal Balance | 4,906 | 3,556 | 4,909 |
Impaired Financing Receivable, Related Allowance | 176 | 64 | 27 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,904 | 2,134 | 2,241 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,261 | 650 | 553 |
Impaired Financing Receivable, Average Recorded Investment | 3,165 | 2,784 | 2,794 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 46 | 80 | 100 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 43 | 22 | 19 |
Impaired Financing Receivable, Interest Income, Accrual Method | 89 | 102 | 119 |
Mortgage Receivables [Member] | Home equity [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 249 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 108 | 108 | |
Impaired Financing Receivable, Recorded Investment | 249 | 108 | 108 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 249 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 108 | 108 | |
Impaired Financing Receivable, Unpaid Principal Balance | 249 | 108 | 108 |
Impaired Financing Receivable, Related Allowance | 29 | 29 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 97 | ||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 108 | 41 | |
Impaired Financing Receivable, Average Recorded Investment | 97 | 108 | 41 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 6 | ||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 2 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | 6 | 2 | |
Mortgage Receivables [Member] | Commercial real estate [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,679 | 3,370 | 4,011 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,426 | 1,441 | 1,236 |
Impaired Financing Receivable, Recorded Investment | 5,105 | 4,811 | 5,247 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,694 | 3,370 | 4,011 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,426 | 1,441 | 1,236 |
Impaired Financing Receivable, Unpaid Principal Balance | 5,120 | 4,811 | 5,247 |
Impaired Financing Receivable, Related Allowance | 145 | 92 | |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,049 | 3,355 | 3,896 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,773 | 1,466 | 1,266 |
Impaired Financing Receivable, Average Recorded Investment | 3,822 | 4,821 | 5,162 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 59 | 111 | 217 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 98 | 82 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 157 | 193 | 217 |
Mortgage Receivables [Member] | Construction and development [Member] | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 323 | 318 | 507 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,543 | ||
Impaired Financing Receivable, Recorded Investment | 1,866 | 318 | 507 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 323 | 318 | 507 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,543 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 1,866 | 318 | 507 |
Impaired Financing Receivable, Related Allowance | 515 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 274 | 202 | 496 |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,241 | ||
Impaired Financing Receivable, Average Recorded Investment | 1,515 | 202 | 496 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 19 | 17 | 1 |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | |||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 19 | $ 17 | $ 1 |
LOANS RECEIVABLE, NET (Detail_5
LOANS RECEIVABLE, NET (Details 6) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | $ 15,920 | $ 21,466 |
Current | 2,508,416 | 2,298,062 |
Total loans receivable | 2,524,336 | 2,319,528 |
Nonaccrual | 12,346 | 5,841 |
30-59 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 4,275 | 13,649 |
60-89 days past due [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 3,261 | 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 | 8,384 | 5,948 |
Consumer loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 444 | 258 |
Current | 23,401 | 19,732 |
Total loans receivable | 23,845 | 19,990 |
Nonaccrual | 127 | 22 |
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 | 296 | 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 | 31 | 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 | 117 | 21 |
Commercial business loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 2,027 | 610 |
Current | 357,366 | 314,400 |
Total loans receivable | 359,393 | 315,010 |
Nonaccrual | 1,351 | 313 |
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 | 793 | 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 | 632 | 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 | 602 | 59 |
Mortgage Receivables [Member] | One-to-four family [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 6,313 | 11,744 |
Current | 726,404 | 654,030 |
Total loans receivable | 732,717 | 665,774 |
Nonaccrual | 4,918 | 2,613 |
Mortgage Receivables [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 | 503 | 8,139 |
Mortgage Receivables [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 | 1,677 | 1,025 |
Mortgage Receivables [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 | 4,133 | 2,580 |
Mortgage Receivables [Member] | Home equity [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1,309 | 1,576 |
Current | 82,461 | 88,565 |
Total loans receivable | 83,770 | 90,141 |
Nonaccrual | 454 | 117 |
Mortgage Receivables [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 | 723 | 1,350 |
Mortgage Receivables [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 | 213 | 109 |
Mortgage Receivables [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 | 373 | 117 |
Mortgage Receivables [Member] | Commercial real estate [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 4,954 | 2,468 |
Current | 1,029,163 | 931,352 |
Total loans receivable | 1,034,117 | 933,820 |
Nonaccrual | 3,821 | 1,540 |
Mortgage Receivables [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 | 1,780 | 1,358 |
Mortgage Receivables [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 | 120 | 421 |
Mortgage Receivables [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 | 3,054 | 689 |
Mortgage Receivables [Member] | Construction and development [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 873 | 4,810 |
Current | 289,621 | 289,983 |
Total loans receivable | 290,494 | 294,793 |
Nonaccrual | 1,675 | 1,236 |
Mortgage Receivables [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 | 180 | 2,328 |
Mortgage Receivables [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 | 588 | |
Mortgage Receivables [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 | 105 | 2,482 |
Purchased Credit Impaired Loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1,878 | 2,460 |
Current | 48,021 | 75,955 |
Total loans receivable | 49,899 | 78,415 |
Nonaccrual | 605 | 1,880 |
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 | 879 | 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 | 394 | 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 | 605 | 1,880 |
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 | 53 | 95 |
Total loans receivable | 53 | 95 |
Nonaccrual | ||
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 | 8,199 | 17,256 |
Total loans receivable | 8,199 | 17,256 |
Nonaccrual | ||
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 | ||
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 Credit Impaired Loans [Member] | Mortgage Receivables [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total loans receivable | 49,899 | 78,415 |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [Member] | One-to-four family [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 937 | 976 |
Current | 8,140 | 10,201 |
Total loans receivable | 9,077 | 11,177 |
Nonaccrual | 447 | 686 |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [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 | 126 | 265 |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [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 | 364 | 25 |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [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 | 447 | 686 |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [Member] | Home equity [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 3 | 40 |
Current | 50 | 140 |
Total loans receivable | 53 | 180 |
Nonaccrual | 9 | |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [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 | 3 | 31 |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [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] | Mortgage Receivables [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 | 9 | |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [Member] | Commercial real estate [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 901 | 246 |
Current | 28,795 | 42,105 |
Total loans receivable | 29,696 | 42,351 |
Nonaccrual | 158 | |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [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 | 743 | 246 |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [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] | Mortgage Receivables [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 | 158 | |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [Member] | Construction and development [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 37 | 1,198 |
Current | 2,784 | 6,158 |
Total loans receivable | 2,821 | 7,356 |
Nonaccrual | 1,185 | |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [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 | 7 | 13 |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [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 | 30 | |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [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 | 1,185 | |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [Member] | Consumer loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total loans receivable | 53 | 95 |
Purchased Credit Impaired Loans [Member] | Mortgage Receivables [Member] | Commercial business loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total loans receivable | 8,199 | 17,256 |
Purchased Non Credit Impaired Loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 14,043 | 19,006 |
Current | 2,460,394 | 2,222,107 |
Total loans receivable | 2,474,437 | 2,241,113 |
Nonaccrual | 11,741 | 3,961 |
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 | 3,396 | 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 | 2,868 | 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 | 7,779 | 4,068 |
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 | 444 | 258 |
Current | 23,348 | 19,637 |
Total loans receivable | 23,792 | 19,895 |
Nonaccrual | 127 | 22 |
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 | 296 | 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 | 31 | 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 | 117 | 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 | 2,027 | 610 |
Current | 349,167 | 297,144 |
Total loans receivable | 351,194 | 297,754 |
Nonaccrual | 1,351 | 313 |
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 | 793 | 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 | 632 | 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 | 602 | 59 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [Member] | One-to-four family [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 5,377 | 10,768 |
Current | 718,264 | 643,829 |
Total loans receivable | 723,641 | 654,597 |
Nonaccrual | 4,471 | 1,927 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [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 | 378 | 7,874 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [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 | 1,313 | 1,000 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [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 | 3,686 | 1,894 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [Member] | Home equity [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 1,306 | 1,536 |
Current | 82,411 | 88,425 |
Total loans receivable | 83,717 | 89,961 |
Nonaccrual | 454 | 108 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [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 | 720 | 1,319 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [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 | 213 | 109 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [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 | 373 | 108 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [Member] | Commercial real estate [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 4,052 | 2,222 |
Current | 1,000,368 | 889,247 |
Total loans receivable | 1,004,420 | 891,469 |
Nonaccrual | 3,663 | 1,540 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [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 | 1,037 | 1,112 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [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 | 120 | 421 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [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 | 2,895 | 689 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [Member] | Construction and development [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
Total Past Due | 837 | 3,612 |
Current | 286,836 | 283,825 |
Total loans receivable | 287,673 | 287,437 |
Nonaccrual | 1,675 | 51 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [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 | 172 | 2,315 |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [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 | 559 | |
Purchased Non Credit Impaired Loans [Member] | Mortgage Receivables [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 | $ 106 | $ 1,297 |
LOANS RECEIVABLE, NET (Detail_6
LOANS RECEIVABLE, NET (Details 7) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Total loans receivable | $ 2,524,336 | $ 2,319,528 |
Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 49,899 | 78,415 |
Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 2,474,437 | 2,241,113 |
Pass [Member] | ||
Total loans receivable | 2,492,281 | 2,249,624 |
Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 2,454,817 | 2,231,931 |
Special Mention [Member] | ||
Total loans receivable | 13,134 | 49,361 |
Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 7,076 | 4,672 |
Substandard [Member] | ||
Total loans receivable | 18,921 | 20,543 |
Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 12,544 | 4,510 |
Consumer loans [Member] | ||
Total loans receivable | 23,845 | 19,990 |
Consumer loans [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 53 | 95 |
Consumer loans [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 23,792 | 19,895 |
Consumer loans [Member] | Pass [Member] | ||
Total loans receivable | 23,613 | 19,817 |
Consumer loans [Member] | Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 42 | 32 |
Consumer loans [Member] | Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 23,571 | 19,785 |
Consumer loans [Member] | Special Mention [Member] | ||
Total loans receivable | 103 | 35 |
Consumer loans [Member] | Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 35 | |
Consumer loans [Member] | Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 103 | |
Consumer loans [Member] | Substandard [Member] | ||
Total loans receivable | 129 | 138 |
Consumer loans [Member] | Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 11 | 28 |
Consumer loans [Member] | Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 118 | 110 |
Commercial business loans [Member] | ||
Total loans receivable | 359,393 | 315,010 |
Commercial business loans [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 8,199 | 17,256 |
Commercial business loans [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 351,194 | 297,754 |
Commercial business loans [Member] | Pass [Member] | ||
Total loans receivable | 353,742 | 296,038 |
Commercial business loans [Member] | Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 346,487 | 295,470 |
Commercial business loans [Member] | Special Mention [Member] | ||
Total loans receivable | 2,166 | 12,339 |
Commercial business loans [Member] | Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 1,378 | 2,067 |
Commercial business loans [Member] | Substandard [Member] | ||
Total loans receivable | 3,485 | 6,633 |
Commercial business loans [Member] | Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 3,329 | 217 |
Mortgage Receivables [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 49,899 | 78,415 |
Mortgage Receivables [Member] | Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 37,464 | 17,693 |
Mortgage Receivables [Member] | Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 6,058 | 44,689 |
Mortgage Receivables [Member] | Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 6,377 | 16,033 |
Mortgage Receivables [Member] | One-to-four family [Member] | ||
Total loans receivable | 732,717 | 665,774 |
Mortgage Receivables [Member] | One-to-four family [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 9,077 | 11,177 |
Mortgage Receivables [Member] | One-to-four family [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 723,641 | 654,597 |
Mortgage Receivables [Member] | One-to-four family [Member] | Pass [Member] | ||
Total loans receivable | 727,921 | 658,031 |
Mortgage Receivables [Member] | One-to-four family [Member] | Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 7,745 | 5,523 |
Mortgage Receivables [Member] | One-to-four family [Member] | Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 720,177 | 652,508 |
Mortgage Receivables [Member] | One-to-four family [Member] | Special Mention [Member] | ||
Total loans receivable | 417 | 4,086 |
Mortgage Receivables [Member] | One-to-four family [Member] | Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 418 | 4,086 |
Mortgage Receivables [Member] | One-to-four family [Member] | Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | ||
Mortgage Receivables [Member] | One-to-four family [Member] | Substandard [Member] | ||
Total loans receivable | 4,379 | 3,657 |
Mortgage Receivables [Member] | One-to-four family [Member] | Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 914 | 1,568 |
Mortgage Receivables [Member] | One-to-four family [Member] | Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 3,464 | 2,089 |
Mortgage Receivables [Member] | Home equity [Member] | ||
Total loans receivable | 83,770 | 90,141 |
Mortgage Receivables [Member] | Home equity [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 53 | 180 |
Mortgage Receivables [Member] | Home equity [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 83,717 | 89,961 |
Mortgage Receivables [Member] | Home equity [Member] | Pass [Member] | ||
Total loans receivable | 83,382 | 89,919 |
Mortgage Receivables [Member] | Home equity [Member] | Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 45 | 66 |
Mortgage Receivables [Member] | Home equity [Member] | Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 83,336 | 89,853 |
Mortgage Receivables [Member] | Home equity [Member] | Special Mention [Member] | ||
Total loans receivable | 30 | |
Mortgage Receivables [Member] | Home equity [Member] | Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 30 | |
Mortgage Receivables [Member] | Home equity [Member] | Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | ||
Mortgage Receivables [Member] | Home equity [Member] | Substandard [Member] | ||
Total loans receivable | 388 | 192 |
Mortgage Receivables [Member] | Home equity [Member] | Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 8 | 84 |
Mortgage Receivables [Member] | Home equity [Member] | Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 381 | 108 |
Mortgage Receivables [Member] | Commercial real estate [Member] | ||
Total loans receivable | 1,034,117 | 933,820 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 29,696 | 42,351 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 1,004,420 | 891,469 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Pass [Member] | ||
Total loans receivable | 1,016,064 | 898,328 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 20,745 | 10,870 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 995,319 | 887,458 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Special Mention [Member] | ||
Total loans receivable | 9,914 | 28,670 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 4,390 | 26,144 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 5,524 | 2,526 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Substandard [Member] | ||
Total loans receivable | 8,139 | 6,822 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 4,561 | 5,337 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 3,577 | 1,485 |
Mortgage Receivables [Member] | Construction and development [Member] | ||
Total loans receivable | 290,494 | 294,793 |
Mortgage Receivables [Member] | Construction and development [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 2,821 | 7,356 |
Mortgage Receivables [Member] | Construction and development [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 287,673 | 287,437 |
Mortgage Receivables [Member] | Construction and development [Member] | Pass [Member] | ||
Total loans receivable | 287,559 | 287,491 |
Mortgage Receivables [Member] | Construction and development [Member] | Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 1,632 | 634 |
Mortgage Receivables [Member] | Construction and development [Member] | Pass [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 285,927 | 286,857 |
Mortgage Receivables [Member] | Construction and development [Member] | Special Mention [Member] | ||
Total loans receivable | 534 | 4,201 |
Mortgage Receivables [Member] | Construction and development [Member] | Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 463 | 4,122 |
Mortgage Receivables [Member] | Construction and development [Member] | Special Mention [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 71 | 79 |
Mortgage Receivables [Member] | Construction and development [Member] | Substandard [Member] | ||
Total loans receivable | 2,401 | 3,101 |
Mortgage Receivables [Member] | Construction and development [Member] | Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 726 | 2,600 |
Mortgage Receivables [Member] | Construction and development [Member] | Substandard [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 1,675 | 501 |
Mortgage Receivables [Member] | Consumer loans [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 53 | 95 |
Mortgage Receivables [Member] | Commercial business loans [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 8,199 | 17,256 |
Mortgage Receivables [Member] | Commercial business loans [Member] | Pass [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 7,255 | 568 |
Mortgage Receivables [Member] | Commercial business loans [Member] | Special Mention [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 787 | 10,272 |
Mortgage Receivables [Member] | Commercial business loans [Member] | Substandard [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | $ 157 | $ 6,416 |
LOANS RECEIVABLE, NET (Detail_7
LOANS RECEIVABLE, NET (Details 8) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Total loans receivable | $ 2,524,336 | $ 2,319,528 |
Nonaccrual | 12,346 | 5,841 |
Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 49,899 | 78,415 |
Nonaccrual | 605 | 1,880 |
Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 2,474,437 | 2,241,113 |
Nonaccrual | 11,741 | 3,961 |
Performing Financing Receivable [Member] | ||
Total loans receivable | 2,511,990 | 2,313,687 |
Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 49,294 | 76,535 |
Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 2,462,696 | 2,237,152 |
Nonperforming Financing Receivable [Member] | ||
90 days or more past due | 625 | 1,880 |
Nonaccrual | 11,721 | 3,961 |
Nonperforming Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
90 days or more past due | 605 | 1,880 |
Nonaccrual | ||
Nonperforming Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
90 days or more past due | 20 | |
Nonaccrual | 11,721 | 3,961 |
Consumer loans [Member] | ||
Total loans receivable | 23,845 | 19,990 |
Nonaccrual | 127 | 22 |
Consumer loans [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 53 | 95 |
Nonaccrual | ||
Consumer loans [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 23,792 | 19,895 |
Nonaccrual | 127 | 22 |
Consumer loans [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 23,718 | 19,968 |
Consumer loans [Member] | Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 53 | 95 |
Consumer loans [Member] | Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 23,665 | 19,873 |
Consumer loans [Member] | Nonperforming Financing Receivable [Member] | ||
90 days or more past due | 20 | |
Nonaccrual | 107 | 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 | 20 | |
Nonaccrual | 107 | 22 |
Commercial business loans [Member] | ||
Total loans receivable | 359,393 | 315,010 |
Nonaccrual | 1,351 | 313 |
Commercial business loans [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 8,199 | 17,256 |
Nonaccrual | ||
Commercial business loans [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 351,194 | 297,754 |
Nonaccrual | 1,351 | 313 |
Commercial business loans [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 358,042 | 314,697 |
Commercial business loans [Member] | Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 8,199 | 17,256 |
Commercial business loans [Member] | Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 349,843 | 297,441 |
Commercial business loans [Member] | Nonperforming Financing Receivable [Member] | ||
90 days or more past due | ||
Nonaccrual | 1,351 | 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 | 1,351 | 313 |
Mortgage Receivables [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 49,899 | 78,415 |
Mortgage Receivables [Member] | One-to-four family [Member] | ||
Total loans receivable | 732,717 | 665,774 |
Nonaccrual | 4,918 | 2,613 |
Mortgage Receivables [Member] | One-to-four family [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 9,077 | 11,177 |
Nonaccrual | 447 | 686 |
Mortgage Receivables [Member] | One-to-four family [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 723,641 | 654,597 |
Nonaccrual | 4,471 | 1,927 |
Mortgage Receivables [Member] | One-to-four family [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 727,799 | 663,161 |
Mortgage Receivables [Member] | One-to-four family [Member] | Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 8,630 | 10,491 |
Mortgage Receivables [Member] | One-to-four family [Member] | Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 719,170 | 652,670 |
Mortgage Receivables [Member] | One-to-four family [Member] | Nonperforming Financing Receivable [Member] | ||
90 days or more past due | 447 | 686 |
Nonaccrual | 4,471 | 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 | 447 | 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 | 4,471 | 1,927 |
Mortgage Receivables [Member] | Home equity [Member] | ||
Total loans receivable | 83,770 | 90,141 |
Nonaccrual | 454 | 117 |
Mortgage Receivables [Member] | Home equity [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 53 | 180 |
Nonaccrual | 9 | |
Mortgage Receivables [Member] | Home equity [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 83,717 | 89,961 |
Nonaccrual | 454 | 108 |
Mortgage Receivables [Member] | Home equity [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 83,316 | 90,024 |
Mortgage Receivables [Member] | Home equity [Member] | Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 53 | 171 |
Mortgage Receivables [Member] | Home equity [Member] | Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 83,263 | 89,853 |
Mortgage Receivables [Member] | Home equity [Member] | Nonperforming Financing Receivable [Member] | ||
90 days or more past due | 9 | |
Nonaccrual | 454 | 108 |
Mortgage Receivables [Member] | Home equity [Member] | Nonperforming Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
90 days or more past due | 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 | 454 | 108 |
Mortgage Receivables [Member] | Commercial real estate [Member] | ||
Total loans receivable | 1,034,117 | 933,820 |
Nonaccrual | 3,821 | 1,540 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 29,696 | 42,351 |
Nonaccrual | 158 | |
Mortgage Receivables [Member] | Commercial real estate [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 1,004,420 | 891,469 |
Nonaccrual | 3,663 | 1,540 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 1,030,296 | 932,280 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 29,538 | 42,351 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 1,000,757 | 889,929 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Nonperforming Financing Receivable [Member] | ||
90 days or more past due | 158 | |
Nonaccrual | 3,663 | 1,540 |
Mortgage Receivables [Member] | Commercial real estate [Member] | Nonperforming Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
90 days or more past due | 158 | |
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 | 3,663 | 1,540 |
Mortgage Receivables [Member] | Construction and development [Member] | ||
Total loans receivable | 290,494 | 294,793 |
Nonaccrual | 1,675 | 1,236 |
Mortgage Receivables [Member] | Construction and development [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 2,821 | 7,356 |
Nonaccrual | 1,185 | |
Mortgage Receivables [Member] | Construction and development [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 287,673 | 287,437 |
Nonaccrual | 1,675 | 51 |
Mortgage Receivables [Member] | Construction and development [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 288,819 | 293,557 |
Mortgage Receivables [Member] | Construction and development [Member] | Performing Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 2,821 | 6,171 |
Mortgage Receivables [Member] | Construction and development [Member] | Performing Financing Receivable [Member] | Purchased Non Credit Impaired Loans [Member] | ||
Total loans receivable | 285,998 | 287,386 |
Mortgage Receivables [Member] | Construction and development [Member] | Nonperforming Financing Receivable [Member] | ||
90 days or more past due | 1,185 | |
Nonaccrual | 1,675 | 51 |
Mortgage Receivables [Member] | Construction and development [Member] | Nonperforming Financing Receivable [Member] | Purchased Credit Impaired Loans [Member] | ||
90 days or more past due | 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 | 1,675 | 51 |
Mortgage Receivables [Member] | Consumer loans [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | 53 | 95 |
Mortgage Receivables [Member] | Commercial business loans [Member] | Purchased Credit Impaired Loans [Member] | ||
Total loans receivable | $ 8,199 | $ 17,256 |
LOANS RECEIVABLE, NET (Detail_8
LOANS RECEIVABLE, NET (Details 9) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Loans Receivable Net Details 9Abstract | ||
Balance at beginning of year | $ 12,902 | $ 14,034 |
New loans | 16,363 | 11,066 |
Repayments | (11,574) | (12,198) |
Balance at end of year | $ 17,691 | $ 12,902 |
LOANS RECEIVABLE, NET (Detail_9
LOANS RECEIVABLE, NET (Details Narrative) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Item | Dec. 31, 2017USD ($)Item | |
Loan Participation Arrangements | $ 37,100 | $ 41,100 |
Loans designated as troubled debt restructurings | 6,400 | 6,500 |
Troubled debt restructurings, still accruing | $ 3,300 | $ 5,300 |
Mortgage Receivables [Member] | Commercial real estate [Member] | ||
Number of Contracts due to modification identified as a TDR | Item | 2 | |
Pre-Modification Recorded Investment | $ 1,700 | |
Post-Modification Recorded Investment | $ 1,700 | |
Mortgage Receivables [Member] | Commercial and Residential real estate [Member] | ||
Number of Contracts due to modification identified as a TDR | Item | 3 | |
Pre-Modification Recorded Investment | $ 800 | |
Post-Modification Recorded Investment | $ 800 |
PREMISES AND EQUIPMENT, NET (De
PREMISES AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Total premises and equipment | $ 79,618 | $ 76,016 | |
Less: Accumulated depreciation | (18,752) | (14,609) | |
Premises and equipment, net | 60,866 | 61,407 | |
Depreciation Expenses | 4,200 | 2,800 | $ 2,000 |
Future Estimated Construction Cost for Property | 2,200 | ||
Land [Member] | |||
Total premises and equipment | 15,093 | 15,093 | |
Building [Member] | |||
Total premises and equipment | 34,213 | 34,217 | |
Furniture and Fixtures [Member] | |||
Total premises and equipment | 29,674 | 24,490 | |
Construction in Progress [Member] | |||
Total premises and equipment | $ 638 | $ 2,216 |
REAL ESTATE ACQUIRED THROUGH _3
REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate Acquired Through Foreclosure | ||
Balance at beginning of period | $ 3,106 | $ 1,179 |
Additions | 285 | 2,554 |
Sales | (1,731) | (627) |
Write downs | (126) | |
Balance at end of period | $ 1,534 | $ 3,106 |
REAL ESTATE ACQUIRED THROUGH _4
REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Real Estate Acquired Through Foreclosure | $ 1,534 | $ 3,106 | $ 1,179 |
Mortgage Receivables [Member] | One-to-four family [Member] | |||
Real Estate Acquired Through Foreclosure | 204 | 709 | |
Mortgage Receivables [Member] | Construction and development [Member] | |||
Real Estate Acquired Through Foreclosure | $ 1,330 | $ 2,397 |
MORTGAGE SERVICING RIGHTS (Deta
MORTGAGE SERVICING RIGHTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Mortgage Servicing Rights Details Abstract | |||
MSR beginning balance | $ 21,003 | $ 15,032 | |
Amount capitalized | 6,283 | 6,061 | |
Amount sold | 9,853 | 2,876 | |
Amount amortized | (4,206) | (2,966) | $ (2,312) |
MSR ending balance | $ 32,933 | $ 21,003 | $ 15,032 |
MORTGAGE SERVICING RIGHTS (De_2
MORTGAGE SERVICING RIGHTS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Mortgage Servicing Rights Details 2Abstract | |||
Year 1 | $ 5,624 | ||
Year 2 | 5,428 | ||
Year 3 | 5,333 | ||
Year 4 | 5,165 | ||
Year 5 | 4,620 | ||
After Year 5 | 6,763 | ||
Total | $ 32,933 | $ 21,003 | $ 15,032 |
MORTGAGE SERVICING RIGHTS (De_3
MORTGAGE SERVICING RIGHTS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Unpaid Principal Balance of Mortgage servicing rights at end of year | $ 4,000 | $ 2,900 |
Fair value of Mortgage Servicing Rights | 40,900 | 26,300 |
Servicing Related Trust Fund received from borrowers | $ 41,500 | $ 34,100 |
Minimum [Member] | ||
Assumptions Used to Estimate Fair Value, Discount Rate (as a percent) | 12.00% | 11.50% |
Assumptions Used to Estimate Fair Value, Prepayment Speed (As a percent) | 6.44% | 8.11% |
Maximum [Member] | ||
Assumptions Used to Estimate Fair Value, Discount Rate (as a percent) | 13.00% | 13.12% |
Assumptions Used to Estimate Fair Value, Prepayment Speed (As a percent) | 7.08% | 9.46% |
Weighted Average [Member] | ||
Assumptions Used to Estimate Fair Value, Discount Rate (as a percent) | 0.25% | 0.25% |
Weighted Average Delinquency Rate (as a percent) | 2.34% | 2.43% |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Deposits Details Abstract | |||
Noninterest-bearing demand accounts | $ 547,022 | $ 525,615 | |
Interest-bearing demand accounts | 566,527 | 551,308 | |
Savings accounts | 192,322 | 213,142 | |
Money market accounts | 431,246 | 452,734 | |
Certificates of deposit: | |||
Less than $250,000 | 875,749 | 755,887 | |
$250,000 or more | 105,327 | 106,243 | |
Total certificates of deposit | 981,076 | 862,130 | |
Total deposits | 2,718,193 | 2,604,929 | $ 1,258,260 |
Brokered certificates of deposit | 174,100 | 99,200 | |
Institutional certificates of deposit | $ 39,400 | $ 39,100 |
DEPOSITS (Details 2)
DEPOSITS (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits Details 1Abstract | ||
Maturing within one year | $ 684,031 | $ 493,525 |
Maturing one through three years | 254,180 | 305,457 |
Maturing after three years | 42,865 | 63,148 |
Total certificates of deposit | $ 981,076 | $ 862,130 |
SHORT-TERM BORROWED FUNDS (Deta
SHORT-TERM BORROWED FUNDS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term FHLB advances | $ 405,500 | $ 340,500 |
Total short-term borrowed funds | 405,500 | 340,500 |
Pledged Financial Instruments with Federal Home Loan Bank Debt | 432,500 | 380,500 |
Pledged Financial Instruments in excess with Federal Home Loan Bank Debt | 305,100 | 328,600 |
Pledged Financial Instruments with Federal Reserve Bank | 226,300 | 334,500 |
Lines available with Federal Reserve Bank | $ 378,800 | $ 199,400 |
Minimum [Member] | ||
Short-term FHLB advances Interest Rate (as a percent) | 1.05% | 2.71% |
Maximum [Member] | ||
Short-term FHLB advances Interest Rate (as a percent) | 2.78% | 0.87% |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Long-term FHLB advances | $ 27,000 | $ 40,000 |
SubordinatedDebt | 32,436 | 32,259 |
Long-term debt | $ 59,436 | $ 72,259 |
Minimum [Member] | ||
Federal Home Loan Bank, Long Term Interest Rate (as a percent) | 1.72% | 1.05% |
Maximum [Member] | ||
Federal Home Loan Bank, Long Term Interest Rate (as a percent) | 2.60% | 1.98% |
Subordinated debentures issued to Carolina Financial Capital Trust I, due 2032 [Member] | ||
Subordinated debentures Interest Rate (as a percent) | 4.25% | 3.11% |
Subordinated debentures issued to Carolina Financial Capital Trust I, due 2037 [Member] | ||
Subordinated debentures Interest Rate (as a percent) | 5.75% | |
Subordinated debentures issued to Carolina Financial Capital Trust I, due 2034 [Member] | ||
Subordinated debentures Interest Rate (as a percent) | 4.75% |
LONG-TERM DEBT (Details 2)
LONG-TERM DEBT (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure Longterm Debt Details Abstract | ||
2,019 | ||
2,020 | 27,000 | |
2,021 | ||
2,022 | ||
2,023 | ||
Thereafter | 32,436 | |
Long-term debt | $ 59,436 | $ 72,259 |
LONG-TERM DEBT (Details Narrati
LONG-TERM DEBT (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Value of common stock issued to company | $ 224 | $ 210 |
Statutory Business Trusts [Member] | ||
Principal amount owed | 36,000 | |
Principal assets of the Trusts | 34,900 | |
Value of common stock issued to company | $ 1,116 | |
Statutory Business Trusts [Member] | Minimum [Member] | ||
Floating interest rates (as a percent) | 4.25% | |
Statutory Business Trusts [Member] | Maximum [Member] | ||
Floating interest rates (as a percent) | 5.76% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income tax expense: | |||||||||||
Federal | $ 12,114 | $ 3,764 | $ 6,312 | ||||||||
State | 2,185 | 971 | 736 | ||||||||
Current Income Tax Expense (Benefit) | 14,299 | 4,735 | 7,048 | ||||||||
Deferred income tax expense (benefit) | |||||||||||
Federal | (1,219) | 7,792 | 770 | ||||||||
State | (311) | 195 | 30 | ||||||||
Deferred tax revaluation related to the 2017 Tax Act | 239 | ||||||||||
Deferred Income Tax Expense (Benefit) | (1,530) | 8,226 | 800 | ||||||||
Total income tax expense | $ 3,981 | $ 4,227 | $ 4,036 | $ 525 | $ 4,302 | $ 3,975 | $ 2,673 | $ 2,011 | $ 12,769 | $ 12,961 | $ 7,848 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Income Taxes Details Abstract | |||||||||||
Federal Tax Rates (as a percentage) | 21.00% | 0.35% | |||||||||
Computed federal income taxes | $ 13,112 | $ 14,534 | $ 8,896 | ||||||||
State income tax, net of federal benefit | 1,674 | 758 | 424 | ||||||||
Tax exempt interest | (1,378) | (1,667) | (778) | ||||||||
Stock based compensation | (331) | (1,514) | (471) | ||||||||
Deferred tax revaluation related to the 2017 Tax Act | 239 | ||||||||||
Other, net | (308) | 611 | (223) | ||||||||
Total income tax expense | $ 3,981 | $ 4,227 | $ 4,036 | $ 525 | $ 4,302 | $ 3,975 | $ 2,673 | $ 2,011 | $ 12,769 | $ 12,961 | $ 7,848 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred tax assets: | ||
Loan loss reserve | $ 8,808 | $ 10,251 |
Unrealized loss on available-for-sale securities | 109 | |
Net operating loss carryforwards | 2,943 | 3,975 |
Stock based compensation | 808 | 483 |
Other | 823 | 915 |
Deferred Tax Assets, Gross | 13,491 | 15,624 |
Valuation allowance | (618) | (958) |
Total gross deferred tax assets | 12,873 | 14,666 |
Deferred tax liabilities: | ||
Depreciation | (3,393) | (2,905) |
Core deposit intangible | (2,932) | (3,591) |
Goodwill | (240) | (181) |
Transaction costs | (2,411) | |
Unrealized gain on interest rate swaps | (1,551) | |
Unrealized gain on securities available for sale | (146) | |
Other | (522) | (1,445) |
Total gross deferred tax liabilities | (7,087) | (12,230) |
Deferred tax assets, net | 5,786 | 2,436 |
Unrealized Gains (losses) on debt and equity securities | 1,800 | 3,400 |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 10,400 | $ 16,800 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Disclosure Commitments And Contingencies Details Abstract | |
Year 1 | $ 2,537 |
Year 2 | 2,332 |
Year 3 | 1,950 |
Year 4 | 1,868 |
Year 5 | 1,738 |
After Year 5 | 14,165 |
Total | $ 24,590 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Commitments And Contingencies Details Abstract | |||
Rental Expense | $ 2,400 | $ 1,400 | $ 1,100 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Share-based Compensation Arrangement Options, Outstanding | 312,382 | 238,180 |
Granted | 1,000 | 22,990 |
Acquired in a merger | 56,337 | |
Exercised | (7,596) | (600) |
Forfeited or expired | (8,355) | (4,525) |
Share-based Compensation Arrangement Options, Outstanding | 297,431 | 312,382 |
Option Exercisable | 263,114 | 236,911 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted Average Exercise Price of Options Outstanding | $ 12.01 | $ 8.69 |
Granted | 40.91 | 30.90 |
Acquired in a merger | 20.73 | |
Exercised | 18.71 | 16.19 |
Forfeited, exchanged or expired | 40.79 | 41.26 |
Weighted Average Exercise Price of Options Outstanding | 11.12 | 12.01 |
Weighted Average Exercise Price of Options Exercisable | $ 9.48 | $ 9.55 |
Intrinsic Value of Options Outstanding | $ 5,500 | $ 7,900 |
Intrinsic Value of Options Exercisable | $ 5,300 | $ 6,600 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Share-based Compensation Arrangement Options, Outstanding | 134,302 | 211,907 |
Granted | 47,039 | 93,556 |
Vested | (52,925) | (167,461) |
Forfeited or expired | (10,450) | (3,700) |
Share-based Compensation Arrangement Options, Outstanding | 117,966 | 134,302 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted Average Exercise Price of Options Outstanding | $ 28.40 | $ 7.55 |
Granted | 39.32 | 33.67 |
Vested | 20.85 | 20.61 |
Forfeited, exchanged or expired | 37.09 | 28.93 |
Weighted Average Exercise Price of Options Outstanding | $ 13.14 | $ 28.40 |
NonVested Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Share-based Compensation Arrangement Options, Outstanding | 17,273 | 20,170 |
Granted | 22,112 | 18,773 |
Vested | (17,273) | (18,870) |
Forfeited or expired | (600) | (2,800) |
Share-based Compensation Arrangement Options, Outstanding | 21,512 | 17,273 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted Average Exercise Price of Options Outstanding | $ 30.90 | $ 16.31 |
Granted | 38.77 | 30.90 |
Exercised | 30.90 | 16.31 |
Forfeited, exchanged or expired | 38.77 | 24.13 |
Weighted Average Exercise Price of Options Outstanding | $ 38.77 | $ 30.90 |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details 2) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement Options, Outstanding | 297,431 | 312,382 | 238,180 |
Weighted Avg. Remaining Years Contractual Life | 5 years 2 months 12 days | 5 years 10 months 24 days | |
Weighted Average Exercise Price of Options Outstanding | $ 11.12 | $ 12.01 | $ 8.69 |
Option Exercisable | 263,114 | 236,911 | |
Weighted Average Exercise Price of Options Exercisable | $ 9.48 | $ 9.55 | |
Excercise Price $ 4.17 [Member] | |||
Share-based Compensation Arrangement Options, Outstanding | 124,930 | 124,930 | |
Weighted Avg. Remaining Years Contractual Life | 4 years 3 months 18 days | 5 years 3 months 18 days | |
Weighted Average Exercise Price of Options Outstanding | $ 4.17 | $ 4.17 | |
Option Exercisable | 124,930 | 124,930 | |
Weighted Average Exercise Price of Options Exercisable | $ 4.17 | $ 4.17 | |
Excercise Price $ 8.14 [Member] | |||
Share-based Compensation Arrangement Options, Outstanding | 10,127 | 10,127 | |
Weighted Avg. Remaining Years Contractual Life | 3 years 2 months 12 days | 4 years 2 months 12 days | |
Weighted Average Exercise Price of Options Outstanding | $ 8.14 | $ 8.14 | |
Option Exercisable | 10,127 | 10,127 | |
Weighted Average Exercise Price of Options Exercisable | $ 8.14 | $ 8.14 | |
Excercise Price $ 8.54 [Member] | |||
Share-based Compensation Arrangement Options, Outstanding | 6,576 | 6,576 | |
Weighted Avg. Remaining Years Contractual Life | 5 years 3 months 18 days | 6 years 3 months 18 days | |
Weighted Average Exercise Price of Options Outstanding | $ 8.54 | $ 8.54 | |
Option Exercisable | 6,576 | 6,576 | |
Weighted Average Exercise Price of Options Exercisable | $ 8.54 | $ 8.54 | |
Excercise Price $9.97 - $10.66 [Member] | |||
Share-based Compensation Arrangement Options, Outstanding | 7,596 | ||
Weighted Avg. Remaining Years Contractual Life | 2 years 2 months 12 days | ||
Weighted Average Exercise Price of Options Outstanding | $ 10.52 | ||
Option Exercisable | 7,596 | ||
Weighted Average Exercise Price of Options Exercisable | $ 10.52 | ||
Excercise Price $11.58 - $12.88 [Member] | |||
Share-based Compensation Arrangement Options, Outstanding | 58,796 | 58,796 | |
Weighted Avg. Remaining Years Contractual Life | 6 years | 6 years 8 months 12 days | |
Weighted Average Exercise Price of Options Outstanding | $ 11.66 | $ 11.65 | |
Option Exercisable | 58,796 | 40,295 | |
Weighted Average Exercise Price of Options Exercisable | $ 11.66 | $ 11.69 | |
Excercise Price $15.82 - $16.83 [Member] | |||
Share-based Compensation Arrangement Options, Outstanding | 54,781 | 54,781 | |
Weighted Avg. Remaining Years Contractual Life | 7 years | 8 years | |
Weighted Average Exercise Price of Options Outstanding | $ 16.56 | $ 16.56 | |
Option Exercisable | 36,791 | 20,801 | |
Weighted Average Exercise Price of Options Exercisable | $ 16.54 | $ 16.49 | |
Excercise Price $20.97 - $21.54 [Member] | |||
Share-based Compensation Arrangement Options, Outstanding | 10,635 | 10,635 | |
Weighted Avg. Remaining Years Contractual Life | 7 months 5 days | 1 year 7 months 6 days | |
Weighted Average Exercise Price of Options Outstanding | $ 21.21 | $ 21.21 | |
Option Exercisable | 10,635 | 10,635 | |
Weighted Average Exercise Price of Options Exercisable | $ 21.21 | $ 21.21 | |
Excercise Price $30.90 [Member] | |||
Share-based Compensation Arrangement Options, Outstanding | 22,990 | 22,990 | |
Weighted Avg. Remaining Years Contractual Life | 8 years 1 month 5 days | 9 years 1 month 6 days | |
Weighted Average Exercise Price of Options Outstanding | $ 30.9 | $ 30.9 | |
Option Exercisable | 7,663 | ||
Weighted Average Exercise Price of Options Exercisable | $ 30.9 | ||
Excercise Price $34.10 - $38.03 [Member] | |||
Share-based Compensation Arrangement Options, Outstanding | 5,570 | ||
Weighted Avg. Remaining Years Contractual Life | 7 months 6 days | ||
Weighted Average Exercise Price of Options Outstanding | $ 36.24 | ||
Option Exercisable | 5,570 | ||
Weighted Average Exercise Price of Options Exercisable | $ 36.24 | ||
Excercise Price $40.91 [Member] | |||
Share-based Compensation Arrangement Options, Outstanding | 1,000 | ||
Weighted Avg. Remaining Years Contractual Life | 2 years 2 months 12 days | ||
Weighted Average Exercise Price of Options Outstanding | $ 40.91 | ||
Option Exercisable | |||
Weighted Average Exercise Price of Options Exercisable | |||
Excercise Price $42.28 - $42.56 [Member] | |||
Share-based Compensation Arrangement Options, Outstanding | 5,317 | ||
Weighted Avg. Remaining Years Contractual Life | 1 month 6 days | ||
Weighted Average Exercise Price of Options Outstanding | $ 42.36 | ||
Option Exercisable | 5,317 | ||
Weighted Average Exercise Price of Options Exercisable | $ 42.36 | ||
Excercise Price $9.97 - $11.02 [Member] | |||
Share-based Compensation Arrangement Options, Outstanding | 12,660 | ||
Weighted Avg. Remaining Years Contractual Life | 3 years 9 months 18 days | ||
Weighted Average Exercise Price of Options Outstanding | $ 10.72 | ||
Option Exercisable | 12,660 | ||
Weighted Average Exercise Price of Options Exercisable | $ 10.72 |
STOCK-BASED COMPENSATION (Det_3
STOCK-BASED COMPENSATION (Details 3) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation and related assumption for option program | ||
Dividend yield | 0.50% | 1.00% |
Expected term | 6 years | 6 years |
Expected volatility | 44.00% | 32.00% |
Risk-free interest rate | 2.76% | 2.17% |
STOCK-BASED COMPENSATION (Det_4
STOCK-BASED COMPENSATION (Details 4) - Restricted Stock [Member] - shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
2,019 | 36,983 | ||
2,020 | 58,349 | ||
2,021 | 17,221 | ||
2,022 | 5,413 | ||
2,023 | |||
Thereafter | |||
Share-based Compensation Arrangement Options, Outstanding | 117,966 | 134,302 | 211,907 |
STOCK-BASED COMPENSATION (Det_5
STOCK-BASED COMPENSATION (Details Narrative) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement Options, Outstanding | 297,431 | 312,382 | 238,180 |
2013 Equity Incentive Plan [Member] | |||
Common Stock, Shares Reserved for Issuance | 1,200,000 | ||
Share-based Compensation Arrangement Options, Outstanding | 264,771 | ||
Maximum stock option term period(In years) | 10 years | ||
2013 Equity Incentive Plan [Member] | Employee Stock Option [Member] | |||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 2,700 | 1,700 | 1,300 |
ESTIMATED FAIR VALUE OF FINAN_3
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Securities available for sale | $ 842,801 | $ 743,239 | |
Loans held for sale | 16,972 | 35,292 | $ 31,569 |
Derivative Asset | 4,032 | 2,803 | |
Brokered deposits | 174,100 | 99,200 | |
Derivative Liability | 1,232 | 156 | |
Municipal securities [Member] | |||
Securities available for sale | 213,714 | 247,350 | |
US government agencies [Member] | |||
Securities available for sale | 25,277 | 12,008 | |
Mortgage-backed securities Agency [Member] | |||
Securities available for sale | 197,520 | 243,595 | |
Mortgage-backed securities Non-agency [Member] | |||
Securities available for sale | 157,531 | 95,125 | |
Collateralized loan obligations [Member] | |||
Securities available for sale | 230,699 | 128,643 | |
Asset-backed securities [Member] | |||
Securities available for sale | 11,100 | 9,512 | |
Corporate securities [Member] | |||
Securities available for sale | 6,960 | 7,006 | |
Fair Value, Inputs, Level 1 [Member] | |||
Securities available for sale | |||
Loans held for sale | |||
Derivative Asset | 2,430 | 1,608 | |
Derivative Liability | 937 | 95 | |
Fair Value, Inputs, Level 2 [Member] | |||
Securities available for sale | 842,801 | 733,727 | |
Loans held for sale | 16,972 | 35,292 | |
Derivative Asset | 1,602 | 1,195 | |
Derivative Liability | 295 | 61 | |
Fair Value, Inputs, Level 3 [Member] | |||
Securities available for sale | 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 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage loan interest rate lock commitments [Member] | |||
Derivative Asset | |||
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 | 1,232 | 644 | |
Derivative Liability | 937 | 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 | 1,198 | 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 | 16,972 | 35,292 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage loan interest rate lock commitments [Member] | |||
Derivative Asset | 1,199 | 890 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage loan forward sales commitments [Member] | |||
Derivative Asset | 403 | 305 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities forward sales commitments [Member] | |||
Derivative Asset | |||
Derivative Liability | 295 | 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 | 213,714 | 247,350 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US government agencies [Member] | |||
Securities available for sale | 25,277 | 12,008 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities Agency [Member] | |||
Securities available for sale | 197,520 | 243,595 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities Non-agency [Member] | |||
Securities available for sale | 157,531 | 95,125 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized loan obligations [Member] | |||
Securities available for sale | 230,699 | 128,643 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Asset-backed securities [Member] | |||
Securities available for sale | 11,100 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate securities [Member] | |||
Securities available for sale | 7,006 | 491 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Loans held for sale | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage loan interest rate lock commitments [Member] | |||
Derivative Asset | |||
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 | $ 9,512 |
ESTIMATED FAIR VALUE OF FINAN_4
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2) - Nonrecurring basis [Member] - USD ($) $ in Thousands | Dec. 31, 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] | 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] | 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 | 55,210 | 38,235 |
Fair Value, Inputs, Level 3 [Member] | One-to-four family [Member] | ||
Assets measured at fair value on a nonrecurring basis | 204 | 709 |
Fair Value, Inputs, Level 3 [Member] | Construction and development [Member] | ||
Assets measured at fair value on a nonrecurring basis | 1,330 | 2,397 |
Fair Value, Inputs, Level 3 [Member] | Consumer loans [Member] | ||
Assets measured at fair value on a nonrecurring basis | 31 | 26 |
Fair Value, Inputs, Level 3 [Member] | Commercial business loans [Member] | ||
Assets measured at fair value on a nonrecurring basis | 2,829 | 269 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | ||
Assets measured at fair value on a nonrecurring basis | 40,880 | 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 | 4,511 | 3,371 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Receivables [Member] | Home equity [Member] | ||
Assets measured at fair value on a nonrecurring basis | 249 | 79 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Receivables [Member] | Commercial real estate [Member] | ||
Assets measured at fair value on a nonrecurring basis | 3,825 | 4,811 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Receivables [Member] | Construction and development [Member] | ||
Assets measured at fair value on a nonrecurring basis | $ 1,351 | $ 318 |
ESTIMATED FAIR VALUE OF FINAN_5
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 3) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Minimum [Member] | ||
Assumptions Used to Estimate Fair Value, Prepayment Speed (As a percent) | 6.44% | 8.11% |
Maximum [Member] | ||
Assumptions Used to Estimate Fair Value, Prepayment Speed (As a percent) | 7.08% | 9.46% |
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | ||
Valuation Techniques | Discounted cash flows | Discounted cash flows |
Significant Unobservable Inputs | Comparable sales | Comparable sales |
Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Mortgage Servicing Rights [Member] | ||
Significant Unobservable Input Range | 12.00% | 12.00% |
Assumptions Used to Estimate Fair Value, Prepayment Speed (As a percent) | 6.00% | 8.00% |
Fair Value, Inputs, Level 3 [Member] | 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) | 7.00% | 9.00% |
Fair Value, Inputs, Level 3 [Member] | 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 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Minimum [Member] | ||
Significant Unobservable Input Range | 10.00% | 10.00% |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Maximum [Member] | ||
Significant Unobservable Input Range | 20.00% | 20.00% |
Fair Value, Inputs, Level 3 [Member] | 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 |
Fair Value, Inputs, Level 3 [Member] | Real estate owned [Member] | Minimum [Member] | ||
Significant Unobservable Input Range | 10.00% | 10.00% |
Fair Value, Inputs, Level 3 [Member] | Real estate owned [Member] | Maximum [Member] | ||
Significant Unobservable Input Range | 20.00% | 20.00% |
ESTIMATED FAIR VALUE OF FINAN_6
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 4) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets: | |||
Cash and due from banks | $ 28,857 | $ 25,254 | |
Interest-bearing cash | 33,276 | 55,998 | |
Securities available for sale | 842,801 | 743,239 | |
Federal Home Loan Bank stock | 21,696 | 19,065 | |
Other investments | 3,450 | 3,446 | |
Derivative assets | 4,032 | 2,803 | |
Loans held for sale | 16,972 | 35,292 | $ 31,569 |
Loans receivable, net | 2,509,873 | 2,308,050 | 1,167,578 |
Accrued interest receivable | 13,494 | 11,992 | |
Real estate acquired through foreclosure | 1,534 | 3,106 | 1,179 |
Mortgage servicing rights | 32,933 | 21,003 | |
Financial liabilities: | |||
Deposits | 2,718,193 | 2,604,929 | $ 1,258,260 |
Short-term borrowed funds | 405,500 | 340,500 | |
Long-term debt | 59,436 | 72,259 | |
Derivative liabilities | 1,232 | 156 | |
Drafts outstanding | 8,129 | 7,324 | |
Advances from borrowers for insurance and taxes | 4,100 | 3,005 | |
Accrued interest payable | 1,591 | 1,126 | |
Dividends payable to stockholders | 1,576 | 1,051 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets: | |||
Cash and due from banks | 28,857 | 25,254 | |
Interest-bearing cash | 33,276 | 55,998 | |
Securities available for sale | |||
Federal Home Loan Bank stock | |||
Other investments | |||
Derivative assets | 2,430 | 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 | 937 | 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 | 842,801 | 733,727 | |
Federal Home Loan Bank stock | |||
Other investments | |||
Derivative assets | 1,602 | 1,195 | |
Loans held for sale | 16,972 | 35,292 | |
Loans receivable, net | |||
Accrued interest receivable | 13,494 | 11,992 | |
Real estate acquired through foreclosure | |||
Mortgage servicing rights | |||
Financial liabilities: | |||
Deposits | 2,721,885 | 2,597,526 | |
Short-term borrowed funds | 405,532 | 339,870 | |
Long-term debt | 61,853 | 71,859 | |
Derivative liabilities | 295 | 61 | |
Drafts outstanding | 8,129 | 7,324 | |
Advances from borrowers for insurance and taxes | 4,100 | 3,005 | |
Accrued interest payable | 1,591 | 1,126 | |
Dividends payable to stockholders | 1,576 | 1,051 | |
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets: | |||
Cash and due from banks | |||
Interest-bearing cash | |||
Securities available for sale | 9,512 | ||
Federal Home Loan Bank stock | 21,696 | 19,065 | |
Other investments | 3,450 | 3,446 | |
Derivative assets | |||
Loans held for sale | |||
Loans receivable, net | 2,506,384 | 2,311,088 | |
Accrued interest receivable | |||
Real estate acquired through foreclosure | 1,534 | 3,106 | |
Mortgage servicing rights | 40,880 | 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 | 28,857 | 25,254 | |
Interest-bearing cash | 33,276 | 55,998 | |
Securities available for sale | 842,801 | 743,239 | |
Federal Home Loan Bank stock | 21,696 | 19,065 | |
Other investments | 3,450 | 3,446 | |
Derivative assets | 4,032 | 2,803 | |
Loans held for sale | 16,972 | 35,292 | |
Loans receivable, net | 2,509,873 | 2,308,050 | |
Accrued interest receivable | 13,494 | 11,992 | |
Real estate acquired through foreclosure | 1,534 | 3,106 | |
Mortgage servicing rights | 32,933 | 21,003 | |
Financial liabilities: | |||
Deposits | 2,718,193 | 2,604,929 | |
Short-term borrowed funds | 405,500 | 340,500 | |
Long-term debt | 59,436 | 72,259 | |
Derivative liabilities | 1,232 | 156 | |
Drafts outstanding | 8,129 | 7,324 | |
Advances from borrowers for insurance and taxes | 4,100 | 3,005 | |
Accrued interest payable | 1,591 | 1,126 | |
Dividends payable to stockholders | 1,576 | 1,051 | |
Fair Value [Member] | |||
Financial assets: | |||
Cash and due from banks | 28,857 | 25,254 | |
Interest-bearing cash | 33,276 | 55,998 | |
Securities available for sale | 842,801 | 743,239 | |
Federal Home Loan Bank stock | 21,696 | 19,065 | |
Other investments | 3,450 | 3,446 | |
Derivative assets | 4,032 | 2,803 | |
Loans held for sale | 16,972 | 35,292 | |
Loans receivable, net | 2,506,384 | 2,311,088 | |
Accrued interest receivable | 13,494 | 11,992 | |
Real estate acquired through foreclosure | 1,534 | 3,106 | |
Mortgage servicing rights | 40,880 | 26,255 | |
Financial liabilities: | |||
Deposits | 2,721,885 | 2,597,526 | |
Short-term borrowed funds | 405,532 | 339,870 | |
Long-term debt | 61,853 | 71,859 | |
Derivative liabilities | 1,232 | 156 | |
Drafts outstanding | 8,129 | 7,324 | |
Advances from borrowers for insurance and taxes | 4,100 | 3,005 | |
Accrued interest payable | 1,591 | 1,126 | |
Dividends payable to stockholders | $ 1,576 | $ 1,051 |
ESTIMATED FAIR VALUE OF FINAN_7
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 5) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Commitments to Extend Credit [Member] | ||
Notional Amount | $ 379,170 | $ 422,065 |
Estimated Fair Value | ||
Standby Letters of Credit [Member] | ||
Notional Amount | 13,797 | 4,449 |
Estimated Fair Value |
OFF-BALANCE SHEET FINANCIAL I_2
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS AND CONCENTRATIONS OF CREDIT RISK (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Off-balance Sheet Financial Instruments And Concentrations Of Credit Risk | ||
Commitments to extend credit | $ 379,200 | $ 422,100 |
Stand by letter of credit | $ 13,800 | $ 4,400 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Off-balance Sheet Financial Instruments And Concentrations Of Credit Risk | |||
Defined Contribution Plan, Employer Matching Contribution (As a percent) | 75.00% | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Compensation | 6.00% | ||
Defined Benefit Plan, Contributions by Employer | $ 1,000 | $ 800 | $ 600 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Earnings Per Share Details Abstract | |||
Weighted average shares outstanding | 21,756,595 | 16,317,501 | 12,080,128 |
Effect of dilutive securities | 216,262 | 232,856 | 272,118 |
Average shares outstanding | 21,972,857 | 16,550,357 | 12,352,246 |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 1,000 | 37,802 | 51,170 |
EARNINGS PER SHARE (Details 2)
EARNINGS PER SHARE (Details 2) - shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Earnings Per Share Details 2Abstract | |||
Common stock, shares issued | 22,387,009 | 21,022,202 | 12,548,328 |
Common stock, shares outstanding | 22,387,009 | 21,022,202 | 12,548,328 |
Less nonvested restricted stock awards | (117,966) | (134,302) | (211,907) |
Period end dilutive shares | 22,269,043 | 20,887,900 | 12,336,421 |
CAPITAL REQUIREMENTS AND OTHE_3
CAPITAL REQUIREMENTS AND OTHER RESTRICTIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Parent Company [Member] | ||
CET1 capital to risk-weighted assets, Actual Amount | $ 431,568 | $ 328,511 |
CET1 capital to risk-weighted assets, Actual Percent | 15.19% | 12.42% |
Tier I capital to risk-weighted assets, Actual Amount | $ 462,888 | $ 359,654 |
Tier I capital to risk-weighted assets, Actual Percent | 16.29% | 13.59% |
Total Capital to risk-weighted assets, Actual Amount | $ 477,351 | $ 371,133 |
Total Capital to risk-weighted assets, Actual Percent | 16.80% | 14.03% |
Tier I capital to total average assets, Actual Amount | $ 462,888 | $ 359,654 |
Tier I capital to total average assets, Actual Percent | 13.01% | 12.38% |
CET1 capital (to risk weighted assets, minimum capital required basel III phase-in schedule, capital amount | $ 181,094 | $ 152,145 |
CET1 capital (to risk weighted assets) Minimum Capital Required Basel III Phase In Schedule, Ratio | 6.375% | 5.75% |
CET1 capital (to risk weighted assets) Required For Capital Adequacy Minimum Capital Required Basel III Fully Phased In, Capital Amount | $ 198,848 | $ 185,220 |
CET1 capital (to risk weighted assets) Minimum Capital Required Basel III Fully Phased In, Ratio | 7.00% | 7.00% |
Tier I Capital Required for Capital Adequacy Minimum Capital Required Basel III Phase In Schedule, Capital Amount | $ 223,704 | $ 191,835 |
Tier I Capital Required for Capital Adequacy to Average Assets Minimum Capital Required Basel III Phase In Schedule, Ratio | 7.875% | 7.25% |
Tier I Capital Required for Capital Adequacy Minimum Capital Required Basel III Fully Phased In, Capital Amount | $ 241,459 | $ 224,910 |
Tier I Capital Required for Capital Adequacy to Average Assets Minimum Capital Required Basel III Fully Phased In, Ratio | 8.50% | 8.50% |
Total Capital Required for Capital Adequacy Minimum Capital Required Basel III Phase In Schedule, Capital Amount | $ 280,518 | $ 244,755 |
Total Capital Required for Capital Adequacy to Risk Weighted Assets Minimum Capital Required Basel III Phase In Schedule, Ratio | 9.875% | 9.25% |
Total Capital Required for Capital Adequacy Minimum Capital Required Basel III Fully Phased In, Capital Amount | $ 298,273 | $ 277,830 |
Total Capital Required for Capital Adequacy to Risk Weighted Assets Minimum Capital Required Basel III Fully Phased In, Ratio | 10.50% | 10.50% |
Tier 1 capital (to total average assets) Required For Capital Adequacy Minimum Capital Required Basel III Phase In Schedule, Capital Amount | $ 142,270 | $ 116,198 |
Tier 1 capital (to total average assets) Required for Capital Adequacy to Risk Weighted Assets Minimum Capital Required Basel III Phase In Schedule, Ratio | 4.00% | 4.00% |
Tier 1 capital (to total average assets) Required For Capital Adequacy Minimum Capital Required Basel III Fully Phased In, Capital Amount | $ 142,270 | $ 116,198 |
Tier 1 capital (to total average assets) Required for Capital Adequacy to Risk Weighted Assets Minimum Capital Required Basel III Fully Phased In, Ratio | 4.00% | 4.00% |
CresCom Bank [Member] | ||
CET1 capital to risk-weighted assets, Actual Amount | $ 454,181 | $ 355,024 |
CET1 capital to risk-weighted assets, Actual Percent | 16.00% | 13.43% |
CET1 capital to risk-weighted assets, Required to be Categorized Well Capitalized, Amount | $ 184,496 | $ 171,865 |
CET1 capital to risk-weighted assets, Required to be Categorized Well Capitalized, Percent | 6.50% | 6.50% |
Tier I capital to risk-weighted assets, Actual Amount | $ 454,181 | $ 355,024 |
Tier I capital to risk-weighted assets, Actual Percent | 16.00% | 13.43% |
Tier I capital to risk-weighted assets, Required to be Categorized Well Capitalized, Amount | $ 227,072 | $ 211,527 |
Tier I capital to risk-weighted assets, Required to be Categorized Well Capitalized, Percent | 8.00% | 8.00% |
Total Capital to risk-weighted assets, Actual Amount | $ 371,133 | $ 366,503 |
Total Capital to risk-weighted assets, Actual Percent | 14.03% | 13.86% |
Total Capital to risk-weighted assets, Required to be Categorized Well Capitalized, Amount | $ 283,840 | $ 264,408 |
Total Capital to risk-weighted assets, Required to be Categorized Well Capitalized, Percent | 10.00% | 10.00% |
Tier I capital to total average assets, Actual Amount | $ 359,654 | $ 355,024 |
Tier I capital to total average assets, Actual Percent | 12.38% | 12.21% |
Tier I capital to total average assets, Required to be Categorized Well Capitalized, Amount | $ 177,990 | $ 145,390 |
Tier I capital to total average assets, Required to be Categorized Well Capitalized, Percent | 5.00% | 5.00% |
CET1 capital (to risk weighted assets, minimum capital required basel III phase-in schedule, capital amount | $ 180,948 | $ 152,035 |
CET1 capital (to risk weighted assets) Minimum Capital Required Basel III Phase In Schedule, Ratio | 6.375% | 5.75% |
CET1 capital (to risk weighted assets) Required For Capital Adequacy Minimum Capital Required Basel III Fully Phased In, Capital Amount | $ 198,688 | $ 185,086 |
CET1 capital (to risk weighted assets) Minimum Capital Required Basel III Fully Phased In, Ratio | 7.00% | 7.00% |
Tier I Capital Required for Capital Adequacy Minimum Capital Required Basel III Phase In Schedule, Capital Amount | $ 223,524 | $ 191,696 |
Tier I Capital Required for Capital Adequacy to Average Assets Minimum Capital Required Basel III Phase In Schedule, Ratio | 7.875% | 7.25% |
Tier I Capital Required for Capital Adequacy Minimum Capital Required Basel III Fully Phased In, Capital Amount | $ 241,264 | $ 224,747 |
Tier I Capital Required for Capital Adequacy to Average Assets Minimum Capital Required Basel III Fully Phased In, Ratio | 8.50% | 8.50% |
Total Capital Required for Capital Adequacy Minimum Capital Required Basel III Phase In Schedule, Capital Amount | $ 280,292 | $ 244,578 |
Total Capital Required for Capital Adequacy to Risk Weighted Assets Minimum Capital Required Basel III Phase In Schedule, Ratio | 9.875% | 9.25% |
Total Capital Required for Capital Adequacy Minimum Capital Required Basel III Fully Phased In, Capital Amount | $ 298,032 | $ 277,629 |
Total Capital Required for Capital Adequacy to Risk Weighted Assets Minimum Capital Required Basel III Fully Phased In, Ratio | 10.50% | 10.50% |
Tier 1 capital (to total average assets) Required For Capital Adequacy Minimum Capital Required Basel III Phase In Schedule, Capital Amount | $ 142,392 | $ 116,312 |
Tier 1 capital (to total average assets) Required for Capital Adequacy to Risk Weighted Assets Minimum Capital Required Basel III Phase In Schedule, Ratio | 4.00% | 4.00% |
Tier 1 capital (to total average assets) Required For Capital Adequacy Minimum Capital Required Basel III Fully Phased In, Capital Amount | $ 142,392 | $ 116,312 |
Tier 1 capital (to total average assets) Required for Capital Adequacy to Risk Weighted Assets Minimum Capital Required Basel III Fully Phased In, Ratio | 4.00% | 4.00% |
SUPPLEMENTAL SEGMENT INFORMAT_3
SUPPLEMENTAL SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income | $ 42,919 | $ 40,985 | $ 39,477 | $ 37,676 | $ 32,368 | $ 22,926 | $ 22,123 | $ 17,670 | $ 161,058 | $ 95,087 | $ 60,914 |
Interest expense | 8,027 | 7,102 | 6,572 | 5,545 | 4,451 | 3,377 | 3,025 | 2,400 | 27,248 | 13,253 | 8,753 |
Net interest income (expense) | 34,892 | 33,883 | 32,905 | 32,131 | 27,917 | 19,549 | 19,098 | 15,270 | 133,810 | 81,834 | 52,161 |
(Recovery of) provision for loan losses | 750 | 750 | 559 | 779 | 2,059 | 779 | |||||
Noninterest income (expense) from external customers | 8,520 | 10,300 | 11,027 | 10,048 | 10,005 | 7,875 | 8,805 | 7,231 | 39,896 | 33,916 | 29,297 |
Intersegment noninterest income | |||||||||||
Noninterest expense | 23,237 | 24,002 | 24,371 | 37,598 | 26,513 | 15,456 | 15,890 | 15,586 | 109,208 | 73,445 | 56,040 |
Intersegment noninterest expense | |||||||||||
Income (loss) before income taxes | 19,425 | 19,431 | 19,002 | 4,581 | 10,630 | 11,968 | 12,013 | 6,915 | 62,439 | 41,526 | 25,418 |
Income tax expense (benefit) | 3,981 | 4,227 | 4,036 | 525 | 4,302 | 3,975 | 2,673 | 2,011 | 12,769 | 12,961 | 7,848 |
Net income (loss) | $ 15,444 | $ 15,204 | $ 14,966 | $ 4,056 | $ 6,328 | $ 7,993 | $ 9,340 | $ 4,904 | 49,670 | 28,565 | 17,570 |
Community Banking [Member] | |||||||||||
Interest income | 159,483 | 93,319 | 59,242 | ||||||||
Interest expense | 25,227 | 12,100 | 8,149 | ||||||||
Net interest income (expense) | 134,256 | 81,219 | 51,093 | ||||||||
(Recovery of) provision for loan losses | 2,034 | 779 | (36) | ||||||||
Noninterest income (expense) from external customers | 18,680 | 14,262 | 8,389 | ||||||||
Intersegment noninterest income | 966 | 966 | 966 | ||||||||
Noninterest expense | 89,459 | 55,900 | 38,260 | ||||||||
Intersegment noninterest expense | 966 | ||||||||||
Income (loss) before income taxes | 62,409 | 39,768 | 21,258 | ||||||||
Income tax expense (benefit) | 12,785 | 12,929 | 6,384 | ||||||||
Net income (loss) | 49,624 | 26,839 | 14,874 | ||||||||
Mortgage Banking [Member] | |||||||||||
Interest income | 1,841 | 1,743 | 1,591 | ||||||||
Interest expense | 414 | 172 | 93 | ||||||||
Net interest income (expense) | 1,427 | 1,571 | 1,498 | ||||||||
(Recovery of) provision for loan losses | 25 | 36 | |||||||||
Noninterest income (expense) from external customers | 21,106 | 19,654 | 20,908 | ||||||||
Intersegment noninterest income | 99 | 67 | 46 | ||||||||
Noninterest expense | 18,631 | 16,614 | 16,938 | ||||||||
Intersegment noninterest expense | 960 | 966 | 1 | ||||||||
Income (loss) before income taxes | 3,016 | 3,712 | 5,477 | ||||||||
Income tax expense (benefit) | 701 | 1,262 | 1,948 | ||||||||
Net income (loss) | 2,315 | 2,450 | 3,529 | ||||||||
Other [Member] | |||||||||||
Interest income | 56 | 31 | 17 | ||||||||
Interest expense | 2,025 | 1,152 | 603 | ||||||||
Net interest income (expense) | (1,969) | (1,121) | (586) | ||||||||
(Recovery of) provision for loan losses | |||||||||||
Noninterest income (expense) from external customers | 110 | ||||||||||
Intersegment noninterest income | |||||||||||
Noninterest expense | 1,117 | 931 | 842 | ||||||||
Intersegment noninterest expense | 6 | 1 | |||||||||
Income (loss) before income taxes | (2,982) | (2,053) | (1,428) | ||||||||
Income tax expense (benefit) | (716) | (1,267) | (526) | ||||||||
Net income (loss) | (2,266) | (786) | (902) | ||||||||
Eliminations [Member] | |||||||||||
Interest income | (322) | (6) | 64 | ||||||||
Interest expense | (418) | (171) | (92) | ||||||||
Net interest income (expense) | 96 | 165 | 156 | ||||||||
(Recovery of) provision for loan losses | |||||||||||
Noninterest income (expense) from external customers | |||||||||||
Intersegment noninterest income | (1,065) | (1,033) | (1,012) | ||||||||
Noninterest expense | 1 | ||||||||||
Intersegment noninterest expense | (966) | (967) | (967) | ||||||||
Income (loss) before income taxes | (4) | 99 | 111 | ||||||||
Income tax expense (benefit) | (1) | 37 | 42 | ||||||||
Net income (loss) | $ (3) | $ 62 | $ 69 |
SUPPLEMENTAL SEGMENT INFORMAT_4
SUPPLEMENTAL SEGMENT INFORMATION (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | $ 3,790,748 | $ 3,519,017 | $ 1,683,736 |
Loans receivable, net | 2,509,873 | 2,308,050 | 1,167,578 |
Loans held for sale | 16,972 | 35,292 | 31,569 |
Deposits | 2,718,193 | 2,604,929 | 1,258,260 |
Borrowed funds | 464,936 | 412,759 | 241,465 |
Community Banking [Member] | |||
Assets | 3,786,360 | 3,516,551 | 1,678,541 |
Loans receivable, net | 2,494,421 | 2,295,316 | 1,151,704 |
Loans held for sale | 1,450 | 5,999 | 2,159 |
Deposits | 2,724,920 | 2,611,106 | 1,263,030 |
Borrowed funds | 432,500 | 380,500 | 226,000 |
Mortgage Banking [Member] | |||
Assets | 84,335 | 81,681 | 78,315 |
Loans receivable, net | 30,879 | 28,206 | 27,433 |
Loans held for sale | 15,522 | 29,293 | 29,410 |
Deposits | |||
Borrowed funds | 14,951 | 15,000 | 10,990 |
Other [Member] | |||
Assets | 610,167 | 503,144 | 179,681 |
Loans receivable, net | |||
Loans held for sale | |||
Deposits | |||
Borrowed funds | 32,436 | 32,259 | 15,465 |
Eliminations [Member] | |||
Assets | (690,114) | (582,359) | (252,801) |
Loans receivable, net | (15,427) | (15,472) | (11,559) |
Loans held for sale | |||
Deposits | (6,727) | (6,177) | (4,770) |
Borrowed funds | $ (14,951) | $ (15,000) | $ (10,990) |
SUMMARIZED QUARTERLY INFORMAT_3
SUMMARIZED QUARTERLY INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summarized Quarterly Information Unaudited | |||||||||||
Interest income | $ 42,919 | $ 40,985 | $ 39,477 | $ 37,676 | $ 32,368 | $ 22,926 | $ 22,123 | $ 17,670 | $ 161,058 | $ 95,087 | $ 60,914 |
Interest expense | 8,027 | 7,102 | 6,572 | 5,545 | 4,451 | 3,377 | 3,025 | 2,400 | 27,248 | 13,253 | 8,753 |
Net interest income (expense) | 34,892 | 33,883 | 32,905 | 32,131 | 27,917 | 19,549 | 19,098 | 15,270 | 133,810 | 81,834 | 52,161 |
Provision for loan losses | 750 | 750 | 559 | 779 | 2,059 | 779 | |||||
Noninterest income | 8,520 | 10,300 | 11,027 | 10,048 | 10,005 | 7,875 | 8,805 | 7,231 | 39,896 | 33,916 | 29,297 |
Noninterest expense | 23,237 | 24,002 | 24,371 | 37,598 | 26,513 | 15,456 | 15,890 | 15,586 | 109,208 | 73,445 | 56,040 |
Income (loss) before income taxes | 19,425 | 19,431 | 19,002 | 4,581 | 10,630 | 11,968 | 12,013 | 6,915 | 62,439 | 41,526 | 25,418 |
Income tax expense (benefit) | 3,981 | 4,227 | 4,036 | 525 | 4,302 | 3,975 | 2,673 | 2,011 | 12,769 | 12,961 | 7,848 |
Net income (loss) | $ 15,444 | $ 15,204 | $ 14,966 | $ 4,056 | $ 6,328 | $ 7,993 | $ 9,340 | $ 4,904 | $ 49,670 | $ 28,565 | $ 17,570 |
Earnings per common share: | |||||||||||
Basic (per share) | $ 0.69 | $ 0.67 | $ 0.70 | $ 0.19 | $ 0.33 | $ 0.50 | $ 0.58 | $ 0.35 | $ 2.28 | $ 1.75 | $ 1.45 |
Diluted (per share) | $ 0.68 | $ 0.66 | $ 0.70 | $ 0.19 | $ 0.33 | $ 0.49 | $ 0.58 | $ 0.35 | $ 2.26 | $ 1.73 | $ 1.42 |
PARENT COMPANY FINANCIAL INFO_3
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income | $ 580 | $ 350 | $ 129 | ||||||||
Total income | $ 42,919 | $ 40,985 | $ 39,477 | $ 37,676 | $ 32,368 | $ 22,926 | $ 22,123 | $ 17,670 | 161,058 | 95,087 | 60,914 |
Interest expense | 8,027 | 7,102 | 6,572 | 5,545 | 4,451 | 3,377 | 3,025 | 2,400 | 27,248 | 13,253 | 8,753 |
(Loss) before income taxes and equity in undistributed earnings of subsidiaries | 19,425 | 19,431 | 19,002 | 4,581 | 10,630 | 11,968 | 12,013 | 6,915 | 62,439 | 41,526 | 25,418 |
Income tax expense (benefit) | 3,981 | 4,227 | 4,036 | 525 | 4,302 | 3,975 | 2,673 | 2,011 | 12,769 | 12,961 | 7,848 |
Net income | $ 15,444 | $ 15,204 | $ 14,966 | $ 4,056 | $ 6,328 | $ 7,993 | $ 9,340 | $ 4,904 | 49,670 | 28,565 | 17,570 |
Parent Company [Member] | |||||||||||
Dividend income from banking subsidiary | |||||||||||
Interest income | 56 | 31 | 18 | ||||||||
Total income | 56 | 31 | 18 | ||||||||
Interest expense | 2,025 | 1,152 | 599 | ||||||||
General and administrative expenses | 1,013 | 932 | 847 | ||||||||
Total expenses | 3,038 | 2,084 | 1,446 | ||||||||
(Loss) before income taxes and equity in undistributed earnings of subsidiaries | (2,982) | (2,053) | (1,428) | ||||||||
Income tax expense (benefit) | (716) | (1,267) | (526) | ||||||||
(Loss) before equity in undistributed earnings of subsidiaries | (2,266) | (786) | (902) | ||||||||
Equity in undistributed earnings of CresCom Bank | 51,936 | 29,351 | 18,472 | ||||||||
Total equity in undistributed earnings of subsidiaries | 51,936 | 29,351 | 18,472 | ||||||||
Net income | $ 49,670 | $ 28,565 | $ 17,570 |
PARENT COMPANY FINANCIAL INFO_4
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Financial Condition (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||
Cash and cash equivalents | $ 62,133 | $ 81,252 | $ 24,352 | $ 26,627 |
Securities available for sale | 842,801 | 743,239 | ||
Other assets | 12,396 | 21,538 | ||
Total assets | 3,790,748 | 3,519,017 | 1,683,736 | |
Liabilities and stockholders' equity: | ||||
Accrued expenses and other liabilities | 14,414 | 11,394 | ||
Long-term debt | 59,436 | 72,259 | ||
Stockholders equity | 575,285 | 475,381 | 163,190 | 139,859 |
Total liabilities and stockholders' equity | 3,790,748 | 3,519,017 | ||
Parent Company [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 5,371 | 4,919 | $ 3,506 | $ 13,240 |
Investment in bank subsidiary | 597,899 | 501,867 | ||
Investment in unconsolidated statutory business trusts | 1,116 | 1,116 | ||
Securities available for sale | 1 | 501 | ||
Other assets | 7,047 | 982 | ||
Total assets | 611,434 | 509,385 | ||
Liabilities and stockholders' equity: | ||||
Accrued expenses and other liabilities | 3,713 | 1,745 | ||
Long-term debt | 32,436 | 32,259 | ||
Stockholders equity | 575,285 | 475,381 | ||
Total liabilities and stockholders' equity | $ 611,434 | $ 509,385 |
PARENT COMPANY FINANCIAL INFO_5
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||||||||||
Net income | $ 15,444 | $ 15,204 | $ 14,966 | $ 4,056 | $ 6,328 | $ 7,993 | $ 9,340 | $ 4,904 | $ 49,670 | $ 28,565 | $ 17,570 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Stock-based compensation | 2,700 | 1,658 | 1,271 | ||||||||
Vested stock awards surrendered in cashless exercise | (774) | (1,789) | (482) | ||||||||
Decrease (increase) in other assets | 9,752 | (29,271) | (1,737) | ||||||||
Increase (decrease) in other liabilities | 106 | (6,588) | 2,365 | ||||||||
Net cash provided by (used in) operating activities | 69,406 | (8,678) | 28,764 | ||||||||
Cash flows from investing activities: | |||||||||||
Sales and maturities of available for sale securities | 105,005 | 77,781 | 57,909 | ||||||||
Net cash (paid) received from acquisitions | 122,320 | 3,668 | |||||||||
Net cash (used in) investing activities | (308,000) | (167,221) | (185,570) | ||||||||
Cash flows from financing activities: | |||||||||||
Issuance of common stock, net of offering expenses | 63,022 | 47,671 | |||||||||
Stock options exercised | 56 | 10 | 27 | ||||||||
Excess tax benefit in connection with equity awards | 439 | 454 | |||||||||
Cash dividends paid on common stock | (5,563) | (2,371) | (1,475) | ||||||||
Net cash provided by (used in) financing activities | 219,475 | 232,799 | 154,531 | ||||||||
Net increase (decrease) in cash and cash equivalents | (19,119) | 56,900 | (2,275) | ||||||||
Cash and cash equivalents at beginning of year | 81,252 | 24,352 | 81,252 | 24,352 | 26,627 | ||||||
Cash and cash equivalents at end of year | 62,133 | 81,252 | 62,133 | 81,252 | 24,352 | ||||||
Parent Company [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | 49,670 | 28,565 | 17,570 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed earnings in subsidiaries | (51,936) | (29,351) | (18,472) | ||||||||
Stock-based compensation | 2,700 | 1,658 | 1,271 | ||||||||
Vested stock awards surrendered in cashless exercise | (774) | (1,789) | (482) | ||||||||
Decrease (increase) in other assets | (5,423) | 1,053 | (232) | ||||||||
Increase (decrease) in other liabilities | 1,581 | (3,456) | (163) | ||||||||
Net cash provided by (used in) operating activities | (4,182) | (3,320) | (508) | ||||||||
Cash flows from investing activities: | |||||||||||
Equity contribution in bank subsidiaries | (60,000) | (35,000) | (15,966) | ||||||||
Equity contribution in non-bank subsidiaries | |||||||||||
Sales and maturities of available for sale securities | 500 | ||||||||||
Sale or repayment of investments to subsidiaries | 12,000 | ||||||||||
Net cash (paid) received from acquisitions | (6,016) | 7,734 | |||||||||
Net cash (used in) investing activities | (47,500) | (41,016) | (8,232) | ||||||||
Cash flows from financing activities: | |||||||||||
Issuance of common stock, net of offering expenses | 63,022 | 47,671 | |||||||||
Stock options exercised | 56 | 10 | 27 | ||||||||
Stock repurchase plan, net of commissions | (5,381) | ||||||||||
Excess tax benefit in connection with equity awards | 439 | 454 | |||||||||
Cash dividends paid on common stock | (5,563) | (2,371) | (1,475) | ||||||||
Net cash provided by (used in) financing activities | 52,134 | 45,749 | (994) | ||||||||
Net increase (decrease) in cash and cash equivalents | 452 | 1,413 | (9,734) | ||||||||
Cash and cash equivalents at beginning of year | $ 4,919 | $ 3,506 | 4,919 | 3,506 | 13,240 | ||||||
Cash and cash equivalents at end of year | $ 5,371 | $ 4,919 | $ 5,371 | $ 4,919 | $ 3,506 |