Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 17, 2017 | Jun. 30, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | FIRST COMMUNITY CORP /SC/ | ||
Entity Central Index Key | 932,781 | ||
Document Type | 10-K | ||
Trading Symbol | fcco | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 87,341,966 | ||
Entity Common Stock, Shares Outstanding | 6,713,335 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 11,925 | $ 10,973 |
Interest-bearing bank balances | 9,475 | 11,375 |
Federal funds sold and securities purchased under agreements to resell | 599 | 593 |
Investment securities held-to-maturity | 17,193 | 17,371 |
Investment securities available-for-sale | 253,394 | 264,687 |
Other investments, at cost | 1,809 | 1,783 |
Loans held for sale | 5,707 | 2,962 |
Loans | 546,709 | 489,191 |
Less, allowance for loan losses | 5,214 | 4,596 |
Net loans | 541,495 | 484,595 |
Property, furniture and equipment - net | 29,833 | 29,929 |
Land held for sale | 1,055 | 1,080 |
Bank owned life insurance | 20,905 | 20,301 |
Other real estate owned | 1,146 | 2,458 |
Intangible assets | 1,102 | 1,419 |
Goodwill | 5,078 | 5,078 |
Other assets | 14,077 | 8,130 |
Total assets | 914,793 | 862,734 |
Deposits: | ||
Non-interest bearing demand | 182,915 | 156,247 |
Interest bearing | 583,707 | 559,904 |
Total deposits | 766,622 | 716,151 |
Securities sold under agreements to repurchase | 19,527 | 21,033 |
Federal Home Loan Bank advances | 24,035 | 24,788 |
Junior subordinated debt | 14,964 | 14,964 |
Other liabilities | 7,784 | 6,760 |
Total liabilities | 832,932 | 783,696 |
Commitments and Contingencies (Note 15) | ||
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $1.00 per share; 10,000,000 shares authorized; none issued and outstanding | ||
Common stock, par value $1.00 per share; 10,000,000 shares authorized; issued and outstanding 6,708,393 at December 31, 2016 and 6,690,551 at December 31, 2015 | 6,708 | 6,690 |
Common stock warrants issued | 46 | 46 |
Nonvested restricted stock | (220) | (297) |
Additional paid in capital | 75,991 | 75,761 |
Retained earnings (deficit) | 573 | (3,992) |
Accumulated other comprehensive income (loss) | (1,237) | 830 |
Total shareholders' equity | 81,861 | 79,038 |
Total liabilities and shareholders' equity | $ 914,793 | $ 862,734 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets Parenthetical | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 6,708,393 | 6,690,551 |
Common stock, shares outstanding | 6,708,393 | 6,690,551 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | |||
Loans, including fees | $ 23,677 | $ 23,219 | $ 21,915 |
Investment securities - taxable | 3,819 | 3,630 | 3,986 |
Investment securities - non taxable | 1,905 | 1,681 | 1,291 |
Other short term investments | 105 | 119 | 106 |
Total interest income | 29,506 | 28,649 | 27,298 |
Interest expense: | |||
Deposits | 1,818 | 1,750 | 1,710 |
Securities sold under agreement to repurchase | 42 | 37 | 37 |
Other borrowed money | 1,187 | 1,609 | 1,821 |
Total interest expense | 3,047 | 3,396 | 3,568 |
Net interest income | 26,459 | 25,253 | 23,730 |
Provision for loan losses | 774 | 1,138 | 880 |
Net interest income after provision for loan losses | 25,685 | 24,115 | 22,850 |
Non-interest income: | |||
Deposit service charges | 1,405 | 1,469 | 1,517 |
Mortgage banking income | 3,382 | 3,432 | 3,186 |
Investment advisory fees and non-deposit commissions | 1,135 | 1,287 | 1,268 |
Gain on sale of securities | 601 | 355 | 182 |
Gain ( Loss) on sale of other assets | (33) | 8 | (11) |
Loss on early extinguishment of debt | (459) | (199) | (351) |
Other | 2,909 | 2,614 | 2,422 |
Total non-interest income | 8,940 | 8,966 | 8,213 |
Non-interest expense: | |||
Salaries and employee benefits | 15,323 | 14,428 | 13,743 |
Occupancy | 2,167 | 2,076 | 1,882 |
Equipment | 1,728 | 1,649 | 1,505 |
Marketing and public relations | 865 | 848 | 738 |
FDIC insurance assessments | 412 | 527 | 521 |
Other real estate expense | 201 | 524 | 553 |
Amortization of intangibles | 318 | 387 | 280 |
Merger expenses | 503 | ||
Other | 4,762 | 4,239 | 4,235 |
Total non-interest expense | 25,776 | 24,678 | 23,960 |
Net income before tax | 8,849 | 8,403 | 7,103 |
Income tax expense | 2,167 | 2,276 | 1,982 |
Net income | $ 6,682 | $ 6,127 | $ 5,121 |
Basic earnings per common share (in dollars per share) | $ 1.01 | $ 0.93 | $ 0.78 |
Diluted earnings per common share (in dollars per share) | $ 0.98 | $ 0.91 | $ 0.78 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Comprehensive Income | |||
Net income | $ 6,682 | $ 6,127 | $ 5,121 |
Other comprehensive income (loss): | |||
Unrealized gain (loss) during the period on available for sale securities, net of tax of $860, $106 and ($2,017), respectively | (1,670) | (207) | 3,918 |
Less: Reclassification adjustment for gain included in net income, net of tax of $204, $121, and $62, respectively | (397) | (234) | (120) |
Other comprehensive income (loss) | (2,067) | (441) | 3,798 |
Comprehensive income | $ 4,615 | $ 5,686 | $ 8,919 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements Of Comprehensive Income Parenthetical | |||
Unrealized gain (loss) during the period on available-for-sale securities, taxes | $ 860 | $ 106 | $ (2,017) |
Reclassification adjustment for (gain) loss included in net income, taxes | $ 204 | $ 121 | $ 62 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Warrant [Member] | Additional Paid-In Capital [Member] | Restricted Stock [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2013 | $ 5,303 | $ 48 | $ 62,214 | $ (444) | $ (11,923) | $ (2,527) | $ 52,671 |
Beginning Balance, in shares at Dec. 31, 2013 | 5,303,000 | ||||||
Net income | 5,121 | 5,121 | |||||
Other comprehensive income net of tax | 3,798 | 3,798 | |||||
Issuance of restricted stock | $ 71 | 697 | (768) | ||||
Issuance of restricted stock, in shares | 71,000 | ||||||
Restricted stock shares surrendered | |||||||
Amortization of compensation on restricted stock | 539 | 539 | |||||
Issuance of common stock | $ 1,274 | 12,436 | 13,710 | ||||
Issuance of common stock, in shares | 1,274,000 | ||||||
Dividends: Common | (1,484) | (1,484) | |||||
Dividend reinvestment plan | $ 16 | 157 | 173 | ||||
Dividend reinvestment plan, in shares | 16,000 | ||||||
Ending Balance at Dec. 31, 2014 | $ 6,664 | 48 | 75,504 | (673) | (8,286) | 1,271 | 74,528 |
Ending Balance, in shares at Dec. 31, 2014 | 6,664,000 | ||||||
Net income | 6,127 | 6,127 | |||||
Other comprehensive income net of tax | (441) | (441) | |||||
Issuance of restricted stock | $ 13 | 137 | (150) | ||||
Issuance of restricted stock, in shares | 13,000 | ||||||
Restricted stock shares surrendered | $ (8) | (90) | (98) | ||||
Restricted stock shares surrendered, in shares | (8,000) | ||||||
Amortization of compensation on restricted stock | 526 | 526 | |||||
Exercise of stock warrants | $ 2 | (2) | |||||
Exercise of stock warrants, in shares | 2,000 | ||||||
Dividends: Common | (1,833) | (1,833) | |||||
Dividend reinvestment plan | $ 19 | 210 | 229 | ||||
Dividend reinvestment plan, in shares | 19,000 | ||||||
Ending Balance at Dec. 31, 2015 | $ 6,690 | 46 | 75,761 | (297) | (3,992) | 830 | 79,038 |
Ending Balance, in shares at Dec. 31, 2015 | 6,690,000 | ||||||
Net income | 6,682 | 6,682 | |||||
Other comprehensive income net of tax | (2,067) | (2,067) | |||||
Issuance of restricted stock | $ 22 | 275 | (297) | ||||
Issuance of restricted stock, in shares | 22,000 | ||||||
Restricted stock shares surrendered | $ (26) | (327) | (353) | ||||
Restricted stock shares surrendered, in shares | (26,000) | ||||||
Amortization of compensation on restricted stock | 374 | 374 | |||||
Issuance of common stock | $ 1 | 13 | 14 | ||||
Issuance of common stock, in shares | 1,000 | ||||||
Dividends: Common | (2,117) | (2,117) | |||||
Dividend reinvestment plan | $ 21 | 269 | 290 | ||||
Dividend reinvestment plan, in shares | 21,000 | ||||||
Ending Balance at Dec. 31, 2016 | $ 6,708 | $ 46 | $ 75,991 | $ (220) | $ 573 | $ (1,237) | $ 81,861 |
Ending Balance, in shares at Dec. 31, 2016 | 6,708,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 6,682 | $ 6,127 | $ 5,121 |
Adjustments to reconcile net income to net cash provided in operating activities: | |||
Depreciation | 1,333 | 1,253 | 1,118 |
Premium amortization | 4,040 | 4,214 | 3,617 |
Provision for loan losses | 774 | 1,138 | 880 |
Writedowns of other real estate owned | 76 | 219 | 161 |
(Gain) Loss on sale of other real estate owned | 33 | (8) | 11 |
Originations of HFS loans | (96,489) | (101,944) | (87,864) |
Sales of HFS loans | 93,744 | 103,106 | 87,530 |
Amortization of intangibles | 318 | 387 | 280 |
Gain on sale of securities | (601) | (355) | (182) |
Accretion on acquired loans | (880) | (934) | |
Writedown of land held for sale | 25 | 120 | |
Loss on early extinguishment of debt | 459 | 199 | 351 |
(Increase) decrease in other assets | (5,404) | 936 | 804 |
Increase in accounts payable | 1,025 | 50 | 179 |
Net cash provided in operating activities | 5,135 | 14,508 | 12,007 |
Cash flows from investing activities: | |||
Proceeds from sale of securities available-for-sale | 33,215 | 26,099 | 49,007 |
Purchase of investment securities available-for-sale | (66,359) | (63,217) | (106,064) |
Purchase of investment securities held-to-maturity | (6,879) | (10,666) | |
Maturity/call of investment securities available-for-sale | 38,034 | 37,634 | 37,128 |
Proceeds from sale of other investments | 486 | 1,250 | 671 |
(Increase) decrease in loans | (57,456) | (45,460) | 16,169 |
Net cash disbursed in business combination | (11,353) | ||
Purchase of loans | (8,705) | ||
Proceeds from sale of other real estate owned | 1,781 | 514 | 1,822 |
Purchase of property and equipment | (1,237) | (2,672) | (3,215) |
Purchase of BOLI | (5,250) | ||
Net cash used in investing activities | (51,536) | (57,981) | (35,206) |
Cash flows from financing activities: | |||
Increase in deposit accounts | 50,403 | 46,652 | 18,219 |
Advances from the Federal Home Loan Bank | 73,593 | 32,500 | 38,100 |
Repayment of advances from the Federal Home Loan Bank | (74,865) | (36,848) | (61,674) |
Increase (decrease) in securities sold under agreements to repurchase | (1,506) | 3,650 | (1,251) |
Purchase of deposits | 39,482 | ||
Repayment of long term debt | (370) | ||
Restricted shares surrendered | (353) | (98) | |
Issuance of common stock | 14 | ||
Dividend reinvestment plan | 290 | 229 | 173 |
Dividends paid: Common Stock | (2,117) | (1,833) | (1,484) |
Net cash provided from financing activities | 45,459 | 43,882 | 31,565 |
Net increase (decrease) in cash and cash equivalents | (942) | 409 | 8,366 |
Cash and cash equivalents at beginning of year | 22,941 | 22,532 | 14,166 |
Cash and cash equivalents at end of year | 21,999 | 22,941 | 22,532 |
Cash paid during the period for: | |||
Interest | 3,097 | 3,468 | 3,537 |
Taxes | 1,345 | 2,220 | 1,100 |
Non-cash investing and financing activities: | |||
Unrealized (loss) gain on securities available-for-sale | (2,067) | (441) | 3,798 |
Transfer of loans to foreclosed property | $ 579 | $ 240 | $ 1,567 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | Note 1—ORGANIZATION AND BASIS OF PRESENTATION The consolidated financial statements include the accounts of First Community Corporation (the “Company”) and its wholly owned subsidiary, First Community Bank (the “Bank”). The Company owns all of the common stock of FCC Capital Trust I. All material intercompany transactions are eliminated in consolidation. The Company was organized on November 2, 1994, as a South Carolina corporation, and was formed to become a bank holding company. The Bank opened for business on August 17, 1995. FCC Capital Trust I is an unconsolidated special purpose subsidiary organized for the sole purpose of issuing trust preferred securities. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses. The estimation process includes management’s judgment as to future losses on existing loans based on an internal review of the loan portfolio, including an analysis of the borrower’s current financial position, the consideration of current and anticipated economic conditions and the effect on specific borrowers. In determining the collectability of loans management also considers the fair value of underlying collateral. Various regulatory agencies, as an integral part of their examination process, review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Because of these factors it is possible that the allowance for loan losses could change materially. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, due from banks, interest-bearing bank balances, federal funds sold and securities purchased under agreements to resell. Generally federal funds are sold for a one-day period and securities purchased under agreements to resell mature in less than 90 days. Investment Securities Investment securities are classified as either held-to-maturity, available-for-sale or trading securities. In determining such classification, securities that the Company has the positive intent and ability to hold to maturity are classified as held-to maturity and are carried at amortized cost. Securities classified as available-for-sale are carried at estimated fair values with unrealized gains and losses included in shareholders’ equity on an after tax basis. Trading securities are carried at estimated fair value with unrealized gains and losses included in non-interest income (See Note 4). Gains and losses on the sale of available-for-sale securities and trading securities are determined using the specific identification method. Declines in the fair value of individual held-to-maturity and available-for-sale securities below their cost that are judged to be other than temporary are written down to fair value and charged to income in the Consolidated Statement of Income. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. Mortgage Loans Held for S The Company originates fixed rate residential loans on a servicing released basis in the secondary market. Loans closed but not yet settled with an investor, are carried in the Company’s loans held for sale portfolio. These loans are primarily fixed rate residential loans that have been originated in the Company’s name and have closed. Virtually all of these loans have commitments to be purchased by investors at a locked in price with the investors on the same day that the loan was locked in with the Company’s customers. Therefore, these loans present very little market risk for the Company. The Company usually delivers to, and receives funding from, the investor within 30 days. Commitments to sell these loans to the investor are considered derivative contracts and are sold to investors on a “best efforts” basis. The Company is not obligated to deliver a loan or pay a penalty if a loan is not delivered to the investor. As a result of the short-term nature of these derivative contracts, the fair value of the mortgage loans held for sale in most cases is the same as the value of the loan amount at its origination . Loans and Allowance for Loan Losses Loan receivables that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest is recognized over the term of the loan based on the loan balance outstanding. Fees charged for originating loans, if any, are deferred and offset by the deferral of certain direct expenses associated with loans originated. The net deferred fees are recognized as yield adjustments by applying the interest method. The allowance for loan losses is maintained at a level believed to be adequate by management to absorb potential losses in the loan portfolio. Management’s determination of the adequacy of the allowance is based on an evaluation of the portfolio, past loss experience, economic conditions and volume, growth and composition of the portfolio. The Company considers a loan to be impaired when, based upon current information and events, it is believed that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans that are considered impaired are accounted for at the lower of carrying value or fair value. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due, generally when a loan becomes 90 days past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received first to principal and then to interest income. Property and Equipment Property 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 39 years for buildings and up to 10 years for furniture, fixtures and equipment. Goodwill and Other Intangible Assets Goodwill represents the cost in excess of fair value of net assets acquired (including identifiable intangibles) in purchase transactions. Other intangible assets represent premiums paid for acquisitions of core deposits (core deposit intangibles). Core deposit intangibles are being amortized on a straight-line basis over seven years. Goodwill and identifiable intangible assets are reviewed for impairment annually or whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The annual valuation is performed on September 30 of each year. Other Real Estate Owned Other real estate owned includes real estate acquired through foreclosure. Other real estate owned is carried at the lower of cost (principal balance at date of foreclosure) or fair value minus estimated cost to sell. Any write-downs at the date of foreclosure are charged to the allowance for loan losses. Expenses to maintain such assets, subsequent changes in the valuation allowance, and gains or losses on disposal are included in other expenses. Comprehensive Income (loss) The Company reports comprehensive income (loss) in accordance with Accounting Standards Codification (“ASC”) 220, “Comprehensive Income.” ASC 220 requires that all items that are required to be reported under accounting standards as comprehensive income (loss) be reported in a financial statement that is displayed with the same prominence as other financial statements. The disclosures requirements have been included in the Company’s consolidated statements of comprehensive income (loss). Mortgage Origination Fees Mortgage origination fees relate to activities comprised of accepting residential mortgage applications, qualifying borrowers to standards established by investors and selling the mortgage loans to the investors under pre-existing commitments. The related fees received by the Company for these services are recognized at the time the loan is closed. Advertising Expense Advertising and public relations costs are generally expensed as incurred. External costs incurred in producing media advertising are expensed the first time the advertising takes place. External costs relating to direct mailing costs are expensed in the period in which the direct mailings are sent. Advertising expense totaled $820 thousand, $806 thousand and $609 thousand for the years ended December 31, 2016, 2015, and 2014 respectively. Income Taxes A deferred income tax liability or asset is recognized for the estimated future effects attributable to differences in the tax bases of assets or liabilities and their reported amounts in the financial statements as well as operating loss and tax credit carry forwards. The deferred tax asset or liability is measured using the enacted tax rate expected to apply to taxable income in the period in which the deferred tax asset or liability is expected to be realized. In 2006, the FASB issued guidance related to Accounting for Uncertainty in Income Taxes. This guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with FASB ASC Topic 740-10, “Income Taxes.” It also prescribes a recognition threshold and measurement of a tax position taken or expected to be taken in an enterprise’s tax return. Stock Based Compensation Cost The Company accounts for stock based compensation under the fair value provisions of the accounting literature. Compensation expense is recognized in salaries and employee benefits. The fair value of each grant is estimated on the date of grant using the Black-Sholes option pricing model. No options were granted in 2016, 2015 or 2014. Earnings Per Common Share Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock and common stock equivalents. Common stock equivalents consist of stock options and warrants and are computed using the treasury stock method. Business Combinations and Method of Accounting for Loans Acquired The Company accounts for its acquisitions under FASB ASC Topic 805, “ Business Combinations Fair Value Measurements and Disclosures.” Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, found in FASB ASC Topic 310-30, “ Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality,” Accounting for Certain Loans or Debt Securities Acquired in a Transfer Segment Information ASC Topic 280-10, “ Segment Reporting Recently Issued Accounting Standards In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In January 2015, the FASB issued guidance to eliminate from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect these amendments to have a material effect on its financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under U.S. GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. These amendments did not have a material effect on the Company’s financial statements. In April 2015, the FASB issued guidance which provides guidance to customers about whether a cloud computing arrangement includes a software license. The amendments became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. These amendments did not have a material effect on the Company’s financial statements. In May 2015, the FASB issued guidance which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. These amendments did not have a material effect on the Company’s financial statements. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB issued amendments to the Interest topic of the Accounting Standards Codification to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In September 2015, the FASB amended the Business Combinations topic of the Accounting Standards Codification to simplify the accounting for adjustments made to provisional amounts recognized in a business combination by eliminating the requirement to retrospectively account for those adjustments. The amendments became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. All entities are required to apply the amendments prospectively to adjustments to provisional amounts that occur after the effective date. These amendments did not have a material effect on the Company’s financial statements. In January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB amended the Leases topic of the Accounting Standards Codification to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In March 2016, the FASB amended the Liabilities topic of the Accounting Standards Codification to address the current and potential future diversity in practice related to the derecognition of a prepaid stored-value product liability. The amendments will be effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance using a modified retrospective transition method by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year in which the guidance is effective to each period presented. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB amended the Derivatives and Hedging topic of the Accounting Standards Codification to clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendments will be effective for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company will apply the guidance prospectively to each period presented. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB amended the Investments—Equity Method and Joint Ventures topic of the Accounting Standards Codification to eliminate the requirement to retroactively adopt the equity method of accounting. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company will apply the guidance prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the Accounting Standards Codification to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not expect these amendments to have a material effect on its financial statements. In April 2016, the FASB amended the Revenue from Contracts with Customers topic of the Accounting Standards Codification to clarify guidance related to identifying performance obligations and accounting for licenses of intellectual property. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In May 2016, the FASB amended the Revenue from Contracts with Customers topic of the Accounting Standards Codification to clarify guidance related to collectability, noncash consideration, presentation of sales tax, and transition. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In August 2016, the FASB amended the Statement of Cash Flows topic of the Accounting Standards Codification to clarify how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements. In October 2016, the FASB amended the Income Taxes topic of the Accounting Standards Codification to modify the accounting for intra-entity transfers of assets other than inventory. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In October 2016, the FASB amended the Consolidation topic of the Accounting Standards Codification to revise the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (VIE) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The amendments will be effective for the Company for fiscal years beginning after December 15, 2016 including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements. In November 2016, the FASB amended the Statement of Cash Flows topic of the Accounting Standards Codification to clarify how restricted cash is presented and classified in the statement of cash flows. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In December 2016, the FASB issued amendments to clarify the Accounting Standards Codification (ASC), correct unintended application of guidance, and make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments were effective upon issuance (December 14, 2016) for amendments that do not have transition guidance. Amendments that are subject to transition guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In December 2016, the FASB issued technical corrections and improvements to the Revenue from Contracts with Customers Topic. These corrections make a limited number of revisions to several pieces of the revenue recognition standard issued in 2014. The effective date and transition requirements for the technical corrections will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. 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. Risk and Uncertainties In the normal course of 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 reprice at different speeds, or on a different basis, than its interest-earning assets. Credit risk is the risk of default on the Company’s loan and investment portfolios that results from borrowers’ or issuer’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans and investments and the valuation of real estate held by the Company. The Company is subject to regulations of various governmental agencies (regulatory risk). These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies, which may subject it to further changes with respect to asset valuations, amounts of required loan loss allowances and operating restrictions from regulators’ judgments based on information available to them at the time of their examination. Reclassifications Certain captions and amounts in the 2014 and 2015 consolidated financial statements were reclassified to conform to the 2016 presentation. |
MERGERS AND ACQUISTIONS
MERGERS AND ACQUISTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | Note 3—MERGERS AND ACQUISTIONS On February 1, 2014, the Company acquired all of the outstanding common stock of Savannah River Financial Corporation of Augusta, Georgia (“Savannah River”), the bank holding company for Savannah River Banking Company (“SRBC”), in a cash and stock transaction. The total purchase price was approximately $33.5 million, consisting of $19.8 million in cash and 1,274,200 shares of our common stock valued at $13.7 million based on a provision in the merger agreement that 60% of the outstanding shares of Savannah River common stock be exchanged for cash and 40% of the outstanding shares of Savannah River common stock be exchanged for shares of the Company’s common stock. The value of the Company’s common stock issued was determined based on the closing price of the common stock on January 31, 2014 as reported by NASDAQ, which was $10.76. Savannah River common shareholders received 1.0618 shares of the Company’s common stock in exchange for each share of Savannah River common stock, or $11.00 per share, subject to the limitations discussed above. The Company issued 1,274,200 shares of its common stock in connection with the merger. The Savannah River transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date based on a third party valuation of significant accounts. On September 26, 2014, the Bank completed its acquisition of approximately $40 million in deposits and $8.7 million in loans from First South Bank (“First South”). This represented all of the deposits and a portion of the loans at First South’s Columbia, South Carolina banking office located at 1333 Main Street. The Bank paid a premium of $714 thousand for the deposits and loans acquired. The deposits and loans from First South have been consolidated into the Bank’s branch located at 1213 Lady Street, Columbia, South Carolina. The premium paid of $714 thousand plus fair value adjustments recorded on loans and deposits acquired resulted in a core deposit intangible of $365.9 thousand and other identifiable intangible assets in the amount of $538.6 thousand being recorded related to this transaction and is reflected on the consolidated balance sheet at December 31, 2014. The transaction is being accounted for as an asset acquisition and liability assumption. The core deposit intangible and other identifiable intangible are being amortized over seven years on an accelerated basis. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | Note 4—INVESTMENT SECURITIES The amortized cost and estimated fair values of investment securities are summarized below: AVAILABLE-FOR-SALE: (Dollars in thousands) Amortized Gross Gross Fair Value December 31, 2016: US Treasury securities $ 1,538 $ — $ 18 $ 1,520 Government sponsored enterprises 959 38 — 997 Mortgage-backed securities 145,696 480 1,878 144,298 Small Business Administration pools 50,560 208 584 50,184 State and local government 54,702 907 1,075 54,534 Corporate and other securities 1,932 — 71 1,861 $ 255,387 $ 1,633 $ 3,626 $ 253,394 December 31, 2015: US Treasury securities $ 1,547 $ — $ 25 $ 1,522 Government sponsored enterprises 950 42 — 992 Mortgage-backed securities 146,935 498 1,172 146,261 Small Business Administration pools 57,474 355 501 57,328 State and local government 55,294 2,037 36 57,295 Corporate and other securities 1,349 — 60 1,289 $ 263,549 $ 2,932 $ 1,794 $ 264,687 HELD-TO-MATURITY (Dollars in thousands) Amortized Gross Gross Fair Value December 31, 2016: State and local government $ 17,193 $ 54 $ 133 $ 17,114 $ 17,193 $ 54 $ 133 $ 17,114 December 31, 2015: State and local government $ 17,371 $ 211 $ 27 $ 17,555 $ 17,371 $ 211 $ 27 $ 17,555 At December 31, 2016, corporate and other securities available-for-sale included the following at fair value: mutual funds at $801.1 thousand, foreign debt of $60.1 thousand, and corporate preferred stock in the amount of $1.0 million. At December 31, 2015, corporate and other securities available-for-sale included the following at fair value: mutual funds at $812.0 thousand, foreign debt of $60.1 thousand, and corporate preferred stock in the amount of $416.8 thousand. Other investments, at cost include Federal Home Loan Bank (“FHLB”) stock in the amount of $1.8 million and $1.8 million at December 31, 2016 and December 31, 2015, respectively. For the year ended December 31, 2016, proceeds from the sale of securities available-for-sale amounted to $32.2 million, gross realized gains amounted to $601 thousand and there were no gross realized losses. For the year ended December 31, 2015, proceeds from the sale of securities available-for-sale amounted to $26.1 million, gross realized gains amounted to $380 thousand and gross realized losses amounted to $25 thousand. For the year ended December 31, 2014, proceeds from the sale of securities available-for-sale amounted to $49.0 million, gross realized gains amounted to $308 thousand and gross realized losses amounted to $126 thousand. The tax provision applicable to the net realized gain was approximately $204 thousand, $121 thousand, and $62 thousand for 2016, 2015 and 2014, respectively. The amortized cost and fair value of investment securities at December 31, 2016, by expected maturity, follow. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. Mortgage-backed securities are included in the year corresponding with the remaining expected life. (Dollars in thousands) Available-for-sale Held-to-maturity Amortized Fair Amortized Fair Due in one year or less $ 6,013 $ 5,966 $ — $ — Due after one year through five years 122,954 122,490 611 606 Due after five years through ten years 72,521 71,307 8,229 8,171 Due after ten years 53,899 53,631 8,353 8,337 $ 255,387 $ 253,394 $ 17,193 $ 17,114 Securities with an amortized cost of $102.8 million and fair value of $107.6 million at December 31, 2016 were pledged to secure FHLB advances, public deposits, and securities sold under agreements to repurchase. Securities with an amortized cost of $98.3 million and fair value of $98.1 million at December 31, 2015 were pledged to secure FHLB advances, public deposits, and securities sold under agreements to repurchase. The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position at December 31, 2016 and December 31, 2015. Less than 12 months 12 months or more Total December 31, 2016 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-sale securities: US Treasury $ 1,520 $ 18 $ — $ — $ 1,520 $ 18 Government Sponsored Enterprise mortgage-backed securities 77,389 1,597 16,655 281 94,044 1,878 Small Business Administration pools 15,213 206 23,382 378 38,595 584 State and local government 17,502 1,075 — — 17,502 1,075 Corporate bonds and other — — 801 71 801 71 Total $ 111,624 $ 2,896 $ 40,838 $ 730 $ 152,462 $ 3,626 Less than 12 months 12 months or more Total December 31, 2016 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Held-to-maturity securities: State and local government $ 10,245 $ 133 $ — $ — $ 10,245 $ 133 Total $ 10,245 $ 133 $ — $ — $ 10,245 $ 133 Less than 12 months 12 months or more Total December 31, 2015 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-sale securities: US Treasury $ 1,522 $ 25 $ — $ — $ 1,522 $ 25 Government Sponsored Enterprise mortgage-backed securities 69,112 731 17,593 439 86,705 1,170 Small Business Administration pools 13,386 153 25,709 348 39,095 501 Non-agency mortgage-backed securities — — 186 2 186 2 State and local government 1,461 8 1,362 28 2,823 36 Corporate bonds and other — — 812 60 812 60 Total $ 85,481 $ 917 $ 45,662 $ 877 $ 131,143 $ 1,794 Less than 12 months 12 months or more Total December 31, 2015 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Held-to-maturity securities: State and local government $ 3,473 $ 24 $ 444 $ 3 $ 3,917 $ 27 Total $ 3,473 $ 24 $ 444 $ 3 $ 3,917 $ 27 Government Sponsored Enterprise, Mortgage-Backed Securities: Non-agency Mortgage Backed Securities: During the years ended December 31, 2016, December 31, 2015 and December 31, 2014, no OTTI charges were recorded in earnings for the PLMBS portfolio. At December 31, 2016 the Company does not own any securities rated below investment grade. State and Local Governments and Other: |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
LOANS | Note 5—LOANS Loans summarized by category are as follows: December 31, (Dollars in thousands) 2016 2015 Commercial, financial and agricultural $ 42,704 $ 37,809 Real estate: Construction 45,746 35,829 Mortgage-residential 47,472 49,077 Mortgage-commercial 371,112 326,978 Consumer: Home equity 31,368 30,906 Other 8,307 8,592 Total $ 546,709 $ 489,191 Activity in the allowance for loan losses was as follows: Years ended December 31, (Dollars in thousands) 2016 2015 2014 Balance at the beginning of year $ 4,596 $ 4,132 $ 4,219 Provision for loan losses 774 1,138 881 Charged off loans (239 ) (807 ) (1,111 ) Recoveries 83 133 143 Balance at end of year $ 5,214 $ 4,596 $ 4,132 The detailed activity in the allowance for loan losses and the recorded investment in loans receivable as of and for the years ended December 31, 2016, December 31, 2015 and December 31, 2014 follows: (Dollars in thousands) Real estate Real estate Real estate Mortgage Mortgage Consumer Consumer Commercial Construction Residential Commercial Home equity Other Unallocated Total 2016 Allowance for loan losses: Beginning balance $ 75 $ 51 $ 223 $ 2,036 $ 127 $ 37 $ 2,047 $ 4,596 Charge-offs — — (11 ) (136 ) (20 ) (72 ) — (239 ) Recoveries 5 — 40 21 3 14 — 83 Provisions 65 53 186 872 43 148 (593 ) 774 Ending balance $ 145 $ 104 $ 438 $ 2,793 $ 153 $ 127 $ 1,454 $ 5,214 Ending balances: $ — $ — $ 2 $ 4 $ — $ — $ — $ 6 Collectively evaluated for impairment 145 104 436 2,789 153 127 1,454 5,208 Loans receivable: Ending balance-total $ 42,704 $ 45,746 $ 47,472 $ 371,112 $ 31,368 $ 8,307 $ — $ 546,709 Ending balances: — — 639 5,124 56 — — 5,819 Collectively evaluated for impairment 42,704 45,746 46,833 365,988 31,312 8,307 — 540,890 (Dollars in thousands) Real estate Real estate Real estate Mortgage Mortgage Consumer Consumer Commercial Construction Residential Commercial Home equity Other Unallocated Total 2015 Allowance for loan losses: Beginning balance $ 67 $ 45 $ 179 $ 1,572 $ 134 $ 44 $ 2,091 $ 4,132 Charge-offs (69 ) — (50 ) (626 ) — (62 ) — (807 ) Recoveries 6 — 7 33 3 84 — 133 Provisions 71 6 87 1,057 (10 ) (29 ) (44 ) 1,138 Ending balance $ 75 $ 51 $ 223 $ 2,036 $ 127 $ 37 $ 2,047 $ 4,596 Ending balances: $ — $ — $ 3 $ — $ — $ — $ — $ 3 Collectively evaluated for impairment 75 51 220 2,036 127 37 2,047 4,593 Loans receivable: Ending balance-total $ 37,809 $ 35,829 $ 49,077 $ 326,978 $ 30,906 $ 8,592 $ — $ 489,191 Ending balances: 9 — 848 5,620 — — — 6,477 Collectively evaluated for impairment 37,800 35,829 48,229 321,358 30,906 8,592 — 482,714 (Dollars in thousands) Real estate Real estate Real estate Mortgage Mortgage Consumer Consumer Commercial Construction Residential Commercial Home equity Other Unallocated Total 2014 Allowance for loan losses: Beginning balance $ 233 $ 26 $ 291 $ 1,117 $ 112 $ 80 $ 2,360 $ 4,219 Charge-offs (54 ) — (52 ) (879 ) (17 ) (109 ) — (1,111 ) Recoveries 110 — 10 — 6 17 — 143 Provisions (222 ) 19 (70 ) 1,334 33 56 (269 ) 881 Ending balance $ 67 $ 45 $ 179 $ 1,572 $ 134 $ 44 $ 2,091 $ 4,132 Ending balances: $ — $ — $ 4 $ 57 $ — $ — $ — $ 61 Collectively evaluated for impairment 67 45 175 1,515 134 44 2,091 4,071 Loans receivable: Ending balance-total $ 33,403 $ 27,545 $ 48,510 $ 293,186 $ 33,000 $ 8,200 $ — $ 443,844 Ending balances: 55 — 1,078 7,334 92 — — 8,559 Collectively evaluated for impairment 33,348 27,545 47,432 285,852 32,908 8,200 — 435,285 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 unrelated persons and generally do not involve more than the normal risk of collectability. The following table presents related party loan transactions for the years ended December 31, 2016 and December 31, 2015. (Dollars in thousands) For the years ended December 31, 2016 2015 Balance, beginning of year $ 7,037 $ 3,969 New Loans 481 4,332 Less loan repayments 1,415 1,264 Balance, end of year $ 6,103 $ 7,037 The following table presents at December 31, 2016, 2015 and 2014, loans individually evaluated and considered impaired under FASB ASC 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing troubled debt restructurings. December 31, (Dollars in thousands) 2016 2015 2014 Total loans considered impaired at year end $ 5,819 $ 6,477 $ 8,559 Loans considered impaired for which there is a related allowance for loan loss: Outstanding loan balance $ 224 $ 49 $ 1,959 Related allowance $ 6 $ 3 $ 61 Loans considered impaired and previously written down to fair value $ 5,595 $ 6,428 $ 6,600 Average impaired loans $ 8,727 $ 9,518 $ 10,900 Amount of interest earned during period of impairment $ 112 $ 64 $ 163 The following tables are by loan category and present at December 31, 2016, December 31, 2015 and December 31, 2014 loans individually evaluated and considered impaired under FASB ASC 310, “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing troubled debt restructurings. (Dollars in thousands) December 31, 2016 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ — $ — $ — $ — $ — Real estate: Construction — — — — — Mortgage-residential 593 603 — 660 — Mortgage-commercial 4,946 6,821 — 7,777 98 Consumer: Home Equity 56 56 — 56 — Other — — — — — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 46 46 2 48 2 Mortgage-commercial 178 178 4 186 12 Consumer: Home Equity — — — — — Other — — — — — Total: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 639 649 2 708 2 Mortgage-commercial 5,124 6,999 4 7,963 110 Consumer: Home Equity 56 56 — 56 — Other — — — — — $ 5,819 $ 7,704 $ 6 $ 8,727 $ 112 (Dollars in thousands) December 31, 2015 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ 9 $ 9 $ — $ 13 $ — Real estate: Construction — — — — — Mortgage-residential 799 874 — 1,082 1 Mortgage-commercial 5,620 7,548 — 8,372 60 Consumer: Home Equity — — — — — Other — — — — — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 49 49 3 51 3 Mortgage-commercial — — — — — Consumer: Home Equity — — — — — Other — — — — — Total: Commercial 9 9 — 13 — Real estate: Construction — — — — — Mortgage-residential 848 923 3 1,133 4 Mortgage-commercial 5,620 7,548 — 8,372 60 Consumer: Home Equity — — — — — Other — — — — — $ 6,477 $ 8,480 $ 3 $ 9,518 $ 64 (Dollars in thousands) December 31, 2014 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ 55 $ 112 $ — $ 132 $ 3 Real estate: Construction — — — — — Mortgage-residential 1,025 1,167 — 1,071 8 Mortgage-commercial 5,428 6,469 — 7,634 64 Consumer: Home Equity 92 97 — 83 — Other — — — — — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 53 53 4 54 3 Mortgage-commercial 1,906 2,134 57 1,926 85 Consumer: Home Equity — — — — — Other — — — — — Total: Commercial 55 112 — 132 3 Real estate: Construction — — — — — Mortgage-residential 1,078 1,220 4 1,125 11 Mortgage-commercial 7,334 8,603 57 9,560 149 Consumer: Home Equity 92 97 — 83 — Other — — — — — $ 8,559 $ 10,032 $ 61 $ 10,900 $ 163 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings: Special Mention. Substandard. Doubtful Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be “Pass” rated loans. As of December 31, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk category of loans by class of loans is shown in the table below. As of December 31, 2016 and December 31, 2015, no loans were classified as doubtful. (Dollars in thousands) December 31, 2016 Special Pass Mention Substandard Doubtful Total Commercial, financial & agricultural $ 42,486 $ 218 $ — $ — $ 42,704 Real estate: Construction 45,746 — — — 45,746 Mortgage – residential 45,751 622 1,099 — 47,472 Mortgage – commercial 358,767 5,773 6,572 — 371,112 Consumer: Home Equity 30,929 180 259 — 31,368 Other 8,301 6 — — 8,307 Total $ 531,980 $ 6,799 $ 7,930 $ — $ 546,709 (Dollars in thousands) December 31, 2015 Special Pass Mention Substandard Doubtful Total Commercial, financial & agricultural $ 37,501 $ 299 $ 9 $ — $ 37,809 Real estate: Construction 35,374 455 — — 35,829 Mortgage – residential 46,580 1,378 1,119 — 49,077 Mortgage – commercial 310,367 7,555 9,056 — 326,978 Consumer: Home Equity 30,587 180 139 — 30,906 Other 8,587 1 4 — 8,592 Total $ 468,996 $ 9,868 $ 10,327 $ — $ 489,191 At December 31, 2016 and 2015, non-accrual loans totaled $4.1 million and $4.8 million, respectively. The gross interest income which would have been recorded under the original terms of the non-accrual loans amounted to $340 thousand and $278 thousand in 2016 and 2015, respectively. Interest recorded on non-accrual loans in 2016 and 2015 amounted to $6 thousand and $1 thousand, respectively. Troubled debt restructurings (“TDRs”) that are still accruing are included in impaired loans at December 31, 2016 and 2015 amounted to $1.8 million and $1.6 million, respectively. Interest earned during 2016 and 2015 on these loans amounted to $112 thousand and $63 thousand, respectively. There were loans of $53.0 thousand as of December 31, 2016 that were greater than 90 days delinquent and still accruing interest. There were no loans greater than 90 days delinquent and still accruing interest as of December 31, 2015. The following tables are by loan category and present loans past due and on non-accrual status as of December 31, 2015 and December 31, 2014: (Dollars in thousands) 30-59 60-89 Days Greater than Nonaccrual Total Past Current Total Loans Commercial $ 11 $ — $ — $ — $ 11 $ 42,693 $ 42,704 Real estate: Construction — — — — — 45,746 45,746 Mortgage-residential 194 145 32 593 964 46,508 47,472 Mortgage-commercial 995 337 — 3,400 4,732 366,380 371,112 Consumer: Home equity 59 64 16 56 195 31,173 31,368 Other 16 1 5 — 22 8,285 8,307 Total $ 1,275 $ 547 $ 53 $ 4,049 $ 5,924 $ 540,785 $ 546,709 (Dollars in thousands) 30-59 Days 60-89 Days Greater than Nonaccrual Total Past Current Total Loans Commercial $ 5 $ — $ — $ 9 $ 14 $ 37,795 $ 37,809 Real estate: Construction — — — — — 35,829 35,829 Mortgage-residential 126 195 — 799 1,120 47,957 49,077 Mortgage-commercial 1,180 290 — 4,031 5,501 321,477 326,978 Consumer: Home equity 135 — — — 135 30,771 30,906 Other 4 4 — — 8 8,584 8,592 Total $ 1,450 $ 489 $ — $ 4,839 $ 6,778 $ 482,413 $ 489,191 The following tables, by loan category, present loans determined to be TDRs during the twelve month period ended December 31, 2014. There were no loans determined to be TDRs during the twelve month periods ended December 31, 2016 and December 31, 2015. Troubled Debt Restructurings For the twelve months ended December 31, 2014 (Dollars in thousands) Pre-Modification Post-Modification Number Outstanding Outstanding of Recorded Recorded Contracts Investment Investment TDRs Mortgage-Commercial 1 $ 1,664 $ 1,664 Mortgage-Consumer 1 180 180 Total TDRs 2 $ 1,844 $ 1,844 During the twelve month period ended December 31, 2014, the Company determined two loans to be TDRs. For both of these loans the rate and payment amount were lowered. The following table, by loan category, presents loans determined to be TDRs in the twelve months ended December 31, 2014 that had payment defaults during twelve month period ended December 31, 2014. Defaulted loans are those loans that are greater than 90 days past due Troubled Debt For the twelve months Restructurings December 31, 2014 that subsequently defaulted Number this period of Recorded (Dollars in thousands) Contracts Investment Mortgage-Consumer 1 $ 180 Total TDRs 1 $ 180 In the determination of the allowance for loan losses, all TDRs are reviewed to ensure that one of the three proper valuation methods (fair market value of the collateral, present value of cash flows, or observable market price) is adhered to. All non-accrual loans are written down to its corresponding collateral value. All TDR accruing loans and where the loan balance exceeds the present value of cash flow will have a specific allocation. All nonaccrual loans are considered impaired. Under ASC 310-10, a loan is impaired when it is probable that the Bank will be unable to collect all amounts due including both principal and interest according to the contractual terms of the loan agreement. Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, found in FASB ASC Topic 310-30, ( Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality), A summary of changes in the accretable yield for PCI loans for the years ended December 31, 2016, 2015 and 2014 follows (dollars in thousands): (Dollars in thousands) Year Year Year Accretable yield, beginning of period $ 92 $ 75 $ — Additions — — 272 Accretion (170 ) (544 ) (197 ) Reclassification of nonaccretable difference due to improvement in 112 561 — Other changes, net — — — Accretable yield, end of period $ 34 $ 92 $ 75 At December 31, 2016 and 2015 the recorded investment in purchased impaired loans was $593 thousand and $2.1 million respectively. The unpaid principal balance was $811 thousand and $2.9 million at December 31, 2016 and 2015, respectively. At December 31, 2016 these loans were commercial real estate. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | Note 6– FAIR VALUE MEASUREMENT The Company adopted FASB ASC Fair Value Measurement Topic 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level l Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. FASB ASC 825-10-50 “Disclosure about Fair Value of Financial Instruments”, requires the Company to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions are set forth below. Cash and short term investments—The carrying amount of these financial instruments (cash and due from banks, interest-bearing bank balances, federal funds sold and securities purchased under agreements to resell) approximates fair value. All mature within 90 days and do not present unanticipated credit concerns and are classified as Level 1. Investment Securities—Measurement is on a recurring basis based 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. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, or by dealers or brokers in active over-the-counter markets. Level 2 securities include mortgage-backed securities issued both by government sponsored enterprises and private label mortgage-backed securities. Generally these fair values are priced from established pricing models. Level 3 securities include corporate debt obligations and asset–backed securities that are less liquid or for which there is an inactive market. Loans Held for Sale— The Company originates fixed rate residential loans on a servicing released basis in the secondary market. Loans closed but not yet settled with an investor, are carried in the Company’s loans held for sale portfolio. These loans are fixed rate residential loans that have been originated in the Company’s name and have closed. Virtually all of these loans have commitments to be purchased by investors at a locked in price with the investors on the same day that the loan was locked in with the Company’s customers. Therefore, these loans present very little market risk for the Company and are classified as Level 2. The carrying amount of these loans approximates fair value. Loans—The fair value of loans are estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities and are classified as Level 2. As discount rates are based on current loan rates as well as management estimates, the fair values presented may not be indicative of the value negotiated in an actual sale. 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 non-recurring basis. Fair value is based upon independent appraisals or management’s estimation of the collateral and is considered a Level 3 measurement. Accrued Interest Receivable—The fair value approximates the carrying value and is classified as Level 1. Deposits—The fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The 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. Deposits are classified as Level 2. Federal Home Loan Bank Advances—Fair value is estimated based on discounted cash flows using current market rates for borrowings with similar terms and are classified as Level 2. Short Term Borrowings—The carrying value of short term borrowings (securities sold under agreements to repurchase and demand notes to the Treasury) approximates fair value. These are classified as Level 2. Junior Subordinated Debentures—The fair values of junior subordinated debentures is estimated by using discounted cash flow analyses based on incremental borrowing rates for similar types of instruments. These are classified as Level 2. Accrued Interest Payable—The fair value approximates the carrying value and is classified as Level 1. Commitments to Extend Credit—The fair value of these commitments is immaterial because their underlying interest rates approximate market. The carrying amount and estimated fair value by classification Level of the Company’s financial instruments as of December 31, 2016 and December 31, 2015 are as follows: December 31, 2016 Fair Value (Dollars in thousands) Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and short term investments $ 21,999 $ 21,999 $ 21,999 $ — $ — Held-to-maturity securities 17,193 17,114 — 17,114 — Available-for-sale securities 253,394 253,394 801 251,593 1,000 Other investments, at cost 1,809 1,809 — — 1,809 Loans held for sale 5,707 5,707 — 5,707 — Net loans receivable 541,495 540,487 — 534,674 5,813 Accrued interest 2,925 2,925 2,925 — — Financial liabilities: Non-interest bearing demand $ 182,915 $ 182,915 $ — $ 182,915 $ — NOW and money market accounts 327,459 327,459 — 327,459 — Savings 75,012 75,012 — 75,012 — Time deposits 181,236 181,638 — 181,638 — Total deposits 766,622 767,024 — 767,024 — Federal Home Loan Bank Advances 24,035 24,518 — 24,518 — Short term borrowings 19,527 19,527 — 19,527 — Junior subordinated debentures 14,964 15,258 — 15,258 — Accrued interest payable 602 602 602 — — December 31, 2015 Fair Value (Dollars in thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and short term investments $ 22,941 $ 22,941 $ 22,941 $ — $ — Held-to-maturity securities 17,371 17,555 — 17,555 — Available-for-sale securities 264,687 264,687 812 263,458 417 Other investments, at cost 1,783 1,783 — — 1,783 Loans held for sale 2,962 2,962 — 2,962 — Net loans receivable 484,595 484,669 — 478,195 6,474 Accrued interest 2,877 2,877 2,877 — — Financial liabilities: Non-interest bearing demand $ 156,247 $ 156,247 $ — $ 156,247 $ — NOW and money market accounts 318,308 318,308 — 318,308 — Savings 60,699 60,699 — 60,699 — Time deposits 180,897 181,325 — 181,325 — Total deposits 716,151 716,579 — 716,579 — Federal Home Loan Bank Advances 24,788 25,841 — 25,841 — Short term borrowings 21,033 21,033 — 21,033 — Junior subordinated debentures 14,964 14,954 — 14,954 — Accrued interest payable 652 652 652 — — The following table summarizes quantitative disclosures about the fair value for each category of assets carried at fair value as of December 31, 2016 and December 31, 2015 that are measured on a recurring basis. There were no liabilities carried at fair value as of December 31, 2016 or December 31, 2015 that are measured on a recurring basis. (Dollars in thousands) Description December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities US Treasury Securities $ 1,520 $ — $ 1,520 $ — Government sponsored enterprises 997 — 997 — Mortgage-backed securities 144,298 — 144,298 — Small Business Administration securities 50,184 — 50,184 — State and local government 54,534 — 54,534 — Corporate and other securities 1,861 801 60 1,000 Total $ 253,394 $ 801 $ 251,593 $ 1,000 (Dollars in thousands) Description December 31 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities US Treasury Securities $ 1,522 $ — $ 1,522 $ — Government sponsored enterprises 992 — 992 — Mortgage-backed securities 146,261 — 146,261 — Small Business Administration securities 57,328 — 57,328 — State and local government 57,295 — 57,295 — Corporate and other securities 1,289 812 60 417 Total $ 264,687 $ 812 $ 263,458 $ 417 The following tables reconcile the changes in Level 3 financial instruments for the year ended December 31, 2016 and 2015 measured on a recurring basis: 2016 ( Dollars in thousands) Corporate Beginning Balance December 31, 2015 $ 417 Total gains or losses (realized/unrealized) Included in earnings — Included in other comprehensive income — Purchases, sales, issuances, and settlements (net) 583 Transfers in and/or out of Level 3 — Ending Balance December 31, 2016 $ 1,000 2015 ( Dollars in thousands) Corporate Beginning Balance December 31, 2014 $ 417 Total gains or losses (realized/unrealized) Included in earnings — Included in other comprehensive income — Purchases, issuances, and settlements — Transfers in and/or out of Level 3 — Ending Balance December 31, 2015 $ 417 The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of December 31, 2016 and December 31, 2015 that are measured on a non-recurring basis. There were no liabilities carried at fair value and measured on a non-recurring basis at December 31, 2016 and 2015. (Dollars in thousands) Description December 31, Quoted Prices Significant Significant Impaired loans: Commercial & Industrial $ — $ — $ — $ — Real estate: Mortgage-residential 637 — — 637 Mortgage-commercial 5,120 — — 5,120 Consumer: Home equity 56 — — 56 Other — — — — Total impaired 5,813 — — 5,813 Other real estate owned: Construction 141 — — 141 Mortgage-residential 269 — — 269 Mortgage-commercial 736 — — 736 Total other real estate owned 1,146 — — 1,146 Total $ 6,959 $ — $ — $ 6,959 (Dollars in thousands) Description December 31, Quoted Prices Significant Significant Impaired loans: Commercial & Industrial $ 9 $ — $ — $ 9 Real estate: Mortgage-residential 845 — — 845 Mortgage-commercial 5,620 — — 5,620 Consumer: Home equity — — — — Other — — — — Total impaired 6,474 — — 6,474 Other real estate owned: Construction 276 — — 276 Mortgage-residential 191 — — 191 Mortgage-commercial 1,991 — — 1,991 Total other real estate owned 2,458 — — 2,458 Total $ 8,932 $ — $ — $ 8,932 The Company has a large percentage of loans with real estate serving as collateral. 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. Third party appraisals are generally obtained when a loan is identified as being impaired or at the time it is transferred to OREO. This internal process would consist of evaluating the underlying collateral to independently obtained comparable properties. With respect to less complex or smaller credits, an internal evaluation may be performed. Generally the independent and internal evaluations are updated annually. Factors considered in determining the fair value include geographic sales trends, the value of comparable surrounding properties as well as the condition of the property. The aggregate amount of impaired loans was $5.8 million and $6.5 million for the year ended December 31, 2016 and year ended December 31, 2015, respectively. For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of December 31, 2016 and December 31, 2015, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value as Valuation Technique Significant Significant Corporate and Other Securities $ 1,000 Estimation based on comparable non-listed securities Comparable transactions n/a OREO $ 1,146 Appraisal Value/Comparison Sales/Other estimates Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost Impaired loans $ 5,813 Appraisal Value Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost (Dollars in thousands) Fair Value as Valuation Technique Significant Significant Corporate and Other Securities $ 417 Estimation based on comparable non-listed securities Comparable transactions n/a OREO $ 2,458 Appraisal Value/Comparison Sales/Other estimates Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost Impaired loans $ 6,474 Appraisal Value Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Note 7—PROPERTY AND EQUIPMENT Property and equipment consisted of the following: December 31, (Dollars in thousands) 2016 2015 Land $ 8,629 $ 8,629 Premises 24,722 24,270 Equipment 3,819 4,371 Fixed assets in progress 14 115 37,184 37,385 Accumulated depreciation 7,351 7,456 $ 29,833 $ 29,929 Provision for depreciation included in operating expenses for the years ended December 31, 2016, 2015 and 2014 amounted to $1.3 million, $1.3 million, and $1.1 million, respectively. |
GOODWILL, CORE DEPOSIT INTANGIB
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS | Note 8—GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS Intangible assets (excluding goodwill) consisted of the following: December 31, (Dollars in thousands) 2016 2015 Core deposit premiums, gross carrying amount $ 1,548 $ 1,548 Other intangibles 538 538 2,086 2,086 Accumulated amortization (984 ) (667 ) Net $ 1,102 $ 1,419 Amortization of the intangibles amounted to $318 thousand, $387 thousand and $280 thousand for the years ended December 31, 2016, 2015 and 2014, respectively. On February 1, 2014, we completed our acquisition of Savannah River and its wholly-owned subsidiary, SRBC. Under the terms of the merger agreement, Savannah River shareholders received either $11.00 in cash or 1.0618 shares of the Company’s common stock, or a combination thereof, for each Savannah River share they owned immediately prior to the merger, subject to the limitation that 60% of the outstanding shares of Savannah River common stock were exchanged for cash and 40% of the outstanding shares of Savannah River common stock were exchanged for shares of the Company’s common stock. The Company issued 1,274,200 shares of common stock in connection with the merger. Total intangibles, including goodwill of $4.5 million and a core deposit premium of $1.2 million, were recorded in conjunction with the acquisition. On September 26, 2014, the Bank completed its acquisition and assumption of approximately $40 million in deposits and $8.7 million in loans from First South. This represented all of the deposits and a portion of the loans at First South’s Columbia, South Carolina banking office located at 1333 Main Street. The Bank paid a premium of $714 thousand for the deposits and loans acquired. The deposits and loans from First South have been consolidated into the Bank’s branch located at 1213 Lady Street, Columbia, South Carolina. The premium paid of $714 thousand plus fair value adjustments recorded on loans and deposits acquired resulted in a core deposit intangible of $365.9 thousand and other identifiable intangible assets in the amount of $538.6 thousand being recorded related to this transaction. As a result of the acquisition of Palmetto South mortgage on July 31, 2011, we have recorded goodwill in the amount of $571 thousand. Total goodwill from acquisitions at December 31, 2016 and 2015 totaled $5.1 million. The goodwill is tested for impairment annually having identified none as of December 31,2016 or 2015. Bank-owned life insurance provides benefits to various bank officers. The carrying value of all existing policies at December 31, 2016 and 2015 was $20.9 million and $20.3 million, respectively. |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2016 | |
Real Estate [Abstract] | |
OTHER REAL ESTATE OWNED | Note 9—OTHER REAL ESTATE OWNED The following summarizes the activity in the other real estate owned for the years ended December 31, 2016 and 2015. December 31, (In thousands) 2016 2015 Balance—beginning of year $ 2,458 $ 2,943 Additions—foreclosures 579 240 Writedowns 76 219 Sales 1,815 506 Balance, end of year $ 1,146 $ 2,458 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
DEPOSITS | Note 10—DEPOSITS The Company’s total deposits are comprised of the following at the dates indicated: December 31, December 31, (Dollars in thousands) 2016 2015 Non-interest bearing demand deposits $ 182,915 $ 156,247 NOW and money market accounts 327,459 318,308 Savings 75,012 60,699 Time deposits 181,236 180,897 Total deposits $ 766,622 $ 716,151 At December 31, 2016, the scheduled maturities of time deposits are as follows: (Dollars in thousands) 2017 $ 96,576 2018 39,620 2019 21,931 2020 10,195 2021 12,912 Thereafter 2 181,236 Interest paid on time deposits of $100 thousand or more totaled $606 thousand, $603 thousand, and $599 thousand in 2016, 2015, and 2014, respectively. Time deposits that meet or exceed the FDIC insurance limit of $250 thousand at year end 2016 and 2015 were $37.7 million and $21.2 million, respectively. Deposits from directors and executive officers and their related interests at December 31, 2016 and 2015 amounted to approximately $10.3 million and $8.1 million, respectively The amount of overdrafts classified as loans at December 31, 2016 and 2015 were $165 thousand and $267 thousand, respectively. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED MONEY | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Other than Temporary Impairment of Investments Recognized in Earnings and Other Comprehensive Income (Loss) [Table Text Block] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED MONEY | Note 11—SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED MONEY Securities sold under agreements to repurchase generally mature within one to four days from the transaction date. The weighted average interest rate at December 31, 2016 and 2015 was 0.19% and 0.19%, respectively. The maximum month-end balance during 2016 and 2015 was $23.7 million and $22.9 million, respectively. The average outstanding balance during the years ended December 31, 2016 and 2015 amounted to $21.4 million and $19.3 million, respectively, with an average rate paid of 0.20% and 0.19%, respectively. Securities sold under agreements to repurchase are collateralized by securities with a fair market value of 100% of the agreement. At December 31, 2016 and 2015, the Company had unused short-term lines of credit totaling $20.0 million. |
ADVANCES FROM FEDERAL HOME LOAN
ADVANCES FROM FEDERAL HOME LOAN BANK | 12 Months Ended |
Dec. 31, 2016 | |
Advances from Federal Home Loan Banks [Abstract] | |
ADVANCES FROM FEDERAL HOME LOAN BANK | Note 12—ADVANCES FROM FEDERAL HOME LOAN BANK Advances from the FHLB at December 31, 2016 and 2015, consisted of the following: December 31, (In thousands) 2016 2015 Maturing Amount Rate Amount Rate 2017 11,000 0.65 % 15,250 3.98 % 2018 9,250 4.44 % 2019 3,813 2.94 % 2020 4,519 3.26 % 288 1.00 % 2021 4,703 3.09 % $ 24,035 1.98 % $ 24,788 4.12 % As collateral for its advances, the Company has pledged in the form of blanket liens, eligible loans, in the amount of $40.2 million at December 31, 2016. No securities have been pledged as collateral for advances as of December 31, 2016. As collateral for its advances, the Company has pledged in the form of blanket liens, eligible loans, in the amount of $48.2 million at December 31, 2015. No securities have been pledged as collateral for advances as of December 31, 2015. Advances are subject to prepayment penalties. The average advances during 2016 and 2015 were $23.4 million and $29.4 million, respectively. The average interest rate for 2016 and 2015 was 2.96% and 3.96%, respectively. The maximum outstanding amount at any month end was $32.8 million and $35.5 million for 2016 and 2015, respectively. During the years ended December 31, 2016, December 31, 2015 and December 31, 2014, the Company prepaid advances in the amount of $35.9 million, $4.0 million and $14.6 million, respectively, and realized losses on the early extinguishment of $459 thousand, $199 thousand and $351 thousand, respectively. Of the $14.6 million of 2014 prepaid advances, $8.7 million were related to advances that were acquired during the merger with Savannah River and were repaid during the month of February 2014. These were recorded at fair value at the date of merger and therefore no loss was recorded at the time of prepayment. |
JUNIOR SUBORDINATED DEBT
JUNIOR SUBORDINATED DEBT | 12 Months Ended |
Dec. 31, 2016 | |
Investment Owned Amortized Cost | |
JUNIOR SUBORDINATED DEBT | Note 13—JUNIOR SUBORDINATED DEBT On September 16, 2004, FCC Capital Trust I (“Trust I”), a wholly owned unconsolidated subsidiary of the Company, issued and sold floating rate securities having an aggregate liquidation amount of $15.0 million. The Trust I securities accrue and pay distributions quarterly at a rate per annum equal to LIBOR plus 257 basis points. The distributions are cumulative and payable in arrears. The Company has the right, subject to events of default, to defer payments of interest on the Trust I securities for a period not to exceed 20 consecutive quarters, provided no extension can extend beyond the maturity date of September 16, 2034. The Trust I securities are mandatorily redeemable upon maturity at September 16, 2034. If the Trust I securities are redeemed on or after September 16, 2009, the redemption price will be 100% of the principal amount plus accrued and unpaid interest. The Trust I security were eligible to be redeemed in whole but not in part, at any time prior to September 16, 2009 following an occurrence of a tax event, a capital treatment event or an investment company event. Currently, these securities qualify under risk-based capital guidelines as Tier 1 capital, subject to certain limitations. The Company has no current intention to exercise its right to defer payments of interest on the Trust I securities. In the fourth quarter of 2015, the Company redeemed $500 thousand of this Trust I security. This resulted in a gain of $130 thousand received in 2015. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 14—INCOME TAXES Income tax expense for the years ended December 31, 2016, 2015 and 2014 consists of the following: Year ended December 31 (Dollars in thousands) 2016 2015 2014 Current Federal $ 2,491 $ 2,116 $ 1,232 State 136 387 248 2,627 2,503 1,480 Deferred Federal (460 ) (227 ) 502 State — — — (460 ) (227 ) 502 Income tax expense $ 2,167 $ 2,276 $ 1,982 Reconciliation from expected federal tax expense to effective income tax expense (benefit) for the periods indicated are as follows: Year ended December 31 (Dollars in thousands) 2016 2015 2014 Expected federal income tax expense $ 3,009 $ 2,857 $ 2,415 State income tax net of federal benefit 90 255 164 Tax exempt interest (608 ) (531 ) (392 ) Increase in cash surrender value life insurance (206 ) (139 ) (140 ) Valuation allowance released 2 35 55 Merger expenses — — 70 Low income housing tax credits (186 ) (186 ) (186 ) Other 66 (15 ) (4 ) $ 2,167 $ 2,276 $ 1,982 The following is a summary of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities: December 31, (Dollars in thousands) 2016 2015 Assets: Allowance for loan losses $ 1,798 $ 1,584 Excess tax basis of deductible intangible assets 293 315 Excess tax basis of assets acquired 215 537 Net operating loss carry forward 424 388 Unrealized loss on available-for-sale securities 642 — Compensation expense deferred for tax purposes 1,286 1,133 Deferred loss on other-than-temporary-impairment charges 8 8 Tax credit carry-forwards 17 699 Other 675 754 Total deferred tax asset 5,358 5,418 Valuation reserve 489 487 Total deferred tax asset net of valuation reserve 4,869 4,931 Liabilities: Tax depreciation in excess of book depreciation 357 411 Excess financial reporting basis of assets acquired 1,310 1,368 Unrealized gain on available-for-sale securities — 410 Total deferred tax liabilities 1,667 2,189 Net deferred tax asset recognized $ 3,202 $ 2,742 At December 31 2016 the Company has approximately $12.8 million in State net operating losses. A valuation allowance is established to fully offset the deferred tax asset related to these net operating losses of the holding company as well as a capital loss of $85 thousand for which realizability is uncertain. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Additional amounts of these deferred tax assets considered to be realizable could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. The net deferred asset is included in other assets on the consolidated balance sheets. A portion of the change in the net deferred tax asset relates to unrealized gains and losses on securities available-for-sale. The change in the tax expense related to the change in unrealized losses on these securities of $860 thousand has been recorded directly to shareholders’ equity. The balance in the change in net deferred tax asset results from the current period deferred tax benefit of $460 thousand. Tax returns for 2013 and subsequent years are subject to examination by taxing authorities. As of December 31, 2016, the Company had no material unrecognized tax benefits or accrued interest and penalties. It is the Company’s policy to account for interest and penalties accrued relative to unrecognized tax benefits as a component of income tax expense. |
COMMITMENTS, CONCENTRATIONS OF
COMMITMENTS, CONCENTRATIONS OF CREDIT RISK AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONCENTRATIONS OF CREDIT RISK AND CONTINGENCIES | Note 15—COMMITMENTS, CONCENTRATIONS OF CREDIT RISK AND CONTINGENCIES The Bank 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 Bank’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 Bank uses the same credit policies in making commitments as for on-balance sheet instruments. At December 31, 2016 and 2015, the Bank had commitments to extend credit including lines of credit of $87.3 million and $68.7 million respectively. 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 Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank 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 primary market area served by the Bank our Midlands market consisting of Lexington, Richland, Newberry and Kershaw Counties within the Midlands of South Carolina. As result of the Savannah River acquisition in 2014, we also serve the Aiken, South Carolina and Richmond County, Georgia markets (CSRA Market). With the addition of a loan production office in Greenville, South Carolina we also serve Greenville County (Greenville Market). Management closely monitors its credit concentrations and attempts to diversify the portfolio within its primary market area. The Company considers concentrations of credit risk to exist when pursuant to regulatory guidelines, the amounts loaned to multiple borrowers engaged in similar business activities represent 25% or more of the Bank’s risk based capital, or approximately $23.3 million. Based on this criteria, the Bank had three such concentrations at December 31, 2016, including $98.0 million (17.9% of total loans excluding held for sale) to private households, $93.4 million (17.1% of total loans) to lessors of residential properties, and $38.7 million (7.1% of total loans) to religious organizations. As reflected above, private households make up 98.0% of total loans and equate to approximately 105.2% of total regulatory capital. The risk in this portfolio is diversified over a large number of loans (approximately 1,947). Commercial real estate loans and commercial construction loans represent $406.0 million, or 74.2%, of the portfolio. Approximately $156.0 million, or 38.4%, of the total commercial real estate loans are owner occupied, which can tend to reduce the risk associated with these credits. Although the Bank’s loan portfolio, as well as existing commitments, reflects the diversity of its primary market area, a substantial portion of its debtor’s ability to honor their contracts is dependent upon the economic stability of the area. The nature of the business of the Company and Bank may at times result in a certain amount of litigation. The Bank is involved in certain litigation that is considered incidental to the normal conduct of business. Management believes that the liabilities, if any, resulting from the proceedings will not have a material adverse effect on the consolidated financial position, consolidated results of operations or consolidated cash flows of the Company. |
OTHER EXPENSES
OTHER EXPENSES | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSES | Note 16—OTHER EXPENSES A summary of the components of other non-interest expense is as follows: Year ended December 31, (Dollars in thousands) 2016 2015 2014 ATM/debit card and bill payment processing $ 798 $ 605 $ 569 Supplies 130 137 153 Telephone 349 357 373 Courier 95 89 85 Correspondent services 237 207 188 Insurance 291 265 279 Postage 182 185 189 Loss on limited partnership interest 172 188 187 Director fees 391 367 356 Legal and Professional fees 738 586 766 Shareholder expense 172 130 170 Other 1,207 1,123 920 $ 4,762 $ 4,239 $ 4,235 |
STOCK OPTIONS AND RESTRICTED ST
STOCK OPTIONS AND RESTRICTED STOCK | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK OPTIONS AND RESTRICTED STOCK | Note 17—STOCK OPTIONS, RESTRICTED STOCK, AND DEFERRED COMPENSATION The Company has adopted a stock option plan whereby shares have been reserved for issuance by the Company upon the grant of stock options or restricted stock awards. At December 31, 2016 and 2015, the Company had 141,045 and 163,531 shares, respectively, reserved for future grants. The 350,000 shares reserved were approved by shareholders at the 2011 annual meeting. The plan provides for the grant of options to key employees and directors as determined by a stock option committee made up of at least two members of the board of directors. Options are exercisable for a period of ten years from date of grant. There were no Stock options outstanding and exercisable as of December 31, 2016 and December 31, 2015. At December 31, 2014 there were 69,903 stock options outstanding and exercisable with a weighted average exercise price of $19.44 and a weighted average remaining contractual term of 0.15 years. All of these options expired without being exercised in 2015. In 2016, 2015 and 2014, each non-employee director received 379, 427 and 455 common shares of restricted stock, respectively in connection with their overall compensation plan. In 2016, there were 5,303 restricted shares granted at a value of $13.20 per share. The 2016 shares vested on January 1, 2017. In 2015, there were 6,410 restricted shares granted at a value of $11.70 per share. The 2015 shares vested on January 1, 2016. In 2014, there were 5,460 restricted shares granted at a value of $10.98 per share. The 2014 shares vested on January 1, 2015. In 2016, 2015 and 2014, 17,179, 6,463 and 36,372 restricted shares, respectively were issued to executive officers in connection with the Bank’s incentive compensation plan. The shares were valued at $13.20, $11.70 and $10.98 per share, respectively. Restricted shares granted to executive officers under the incentive compensation plan cliff vest over a three-year period from the date of grant. The assumptions used in the calculation of these amounts for the awards granted in 2016, 2015 and 2014 is based on the price of the Company’s common stock on the grant date. In 2014, 29,228 restricted shares were issued to senior officers of SRBC and retained by the Company in connection with the merger. The shares were valued at $10.55 per share. Restricted shares granted to these officers vest in three equal annual installments beginning on January 31, 2015. Warrants to purchase 97,180 shares at $5.90 per share were issued in connection with the issuing of subordinated debt on November 15, 2011 and remain outstanding at December 31, 2016. The remaining outstanding warrants expire on December 16, 2019. The related subordinated debt was paid off in November 2012. In 2006 the Company established a Non-Employee Director Deferred Compensation Plan, whereby a director may elect to defer all or any part of annual retainer and monthly meeting fees payable with respect to service on the board of directors or a committee of the board. Units of common stock are credited to the director’s account at the time compensation is earned. The non-employee director’s account balance is distributed by issuance of common stock at the time of retirement or resignation from the Board. At December 31, 2016 and 2015 there were 101,888 and 92,925 units in the plan, respectively. The accrued liability related to the plan at December 31, 2016 and 2015 amounted to $967 thousand and $841 thousand, respectively and is included in “Other liabilities” on the balance sheet. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLAN | Note 18—EMPLOYEE BENEFIT PLANS The Company maintains a 401(k) plan, which covers substantially all employees. Participants may contribute up to the maximum allowed by the regulations. During the years ended December 31, 2016, 2015 and 2014, the plan expense amounted to $372 thousand, $364 thousand and $347 thousand, respectively. The Company matches 100% of the employee’s contribution up to 3% and 50% of the employee’s contribution on the next 2% of the employee’s contribution. The Company acquired various single premium life insurance policies from DutchFork that are used to indirectly fund fringe benefits to certain employees and officers. A salary continuation plan was established payable to two key individuals upon attainment of age 63. The plan provides for monthly benefits of $2,500 each for seventeen years. Other plans acquired were supplemental life insurance covering certain key employees. In 2006, the Company established a salary continuation plan which covers six additional key officers. In 2015, the Company established a salary continuation plan to cover additional key employees. The plans provide for monthly benefits upon normal retirement age of varying amounts for a period of fifteen years. Single premium life insurance policies were purchased in 2006 and 2015 in the amount of $3.5 million and $5.2 million, respectively. These policies are designed to offset the funding of these benefits. The cash surrender value at December 31, 2016 and 2015 of all bank owned life insurance was $20.9 million and $20.3 million, respectively. Expenses accrued for the anticipated benefits under the salary continuation plans for the year ended December 31, 2016, 2015 and 2014 amounted to $604 thousand, $409 thousand, and $391 thousand, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | Note 19—EARNINGS PER COMMON SHARE The following reconciles the numerator and denominator of the basic and diluted earnings per common share computation: Year ended December 31, (Amounts in thousands) 2016 2015 2014 Numerator (Included in basic and diluted earnings per share) $ 6,682 $ 6,127 $ 5,121 Denominator Weighted average common shares outstanding for: Basic earnings common per share 6,617 6,558 6,538 Dilutive securities: Deferred compensation 112 110 23 Warrants—Treasury stock method 58 51 46 Diluted common shares outstanding 6,787 6,719 6,607 The average market price used in calculating assumed number of shares $ 14.86 $ 12.31 $ 10.83 For the year ended December 31, 2014 options were not dilutive in calculating diluted earnings per share. As of December 31, 2014 there were 69,903 potentially dilutive options outstanding; the exercise price on all outstanding options exceeded the average market price for the year. There were no outstanding options as of December 31, 2016 and December 31, 2015. On December 16, 2011 there were 107,500 warrants issued in connection with the issuance $2.5 million in subordinated debt. (See Note 13) As shown above, the warrants were dilutive for the periods ended December 31, 2016, December 31, 2015 and December 31, 2014. |
SHAREHOLDERS' EQUITY, CAPITAL R
SHAREHOLDERS' EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Shareholders Equity Capital Requirements And Dividend Restrictions | |
SHAREHOLDERS' EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS | Note 20—SHAREHOLDERS’ EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS The Company and 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 possibly additional discretionary, actions that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and Bank capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting, and other factors. The Company and Bank are required to maintain minimum Tier 1 capital, Common Equity Tier I (CET1) capital, total risked based capital and Tier 1 leverage ratios of 6%, 4.5%, 8% and 4%, respectively. In July 2013, the federal bank regulatory agencies issued a final rule that revised the risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with certain standards in Basel III and certain provisions of the Dodd-Frank Act. The rules became effective as of January 1, 2015. Portions of the new rules have a phase in period. The revised rules will be fully phased in as of January 1, 2019. As of December 31, 2016, the Company and the Bank meet all capital adequacy requirements under the new capital rules on a fully phased-in basis if such requirements had been effective at that time. On February 1, 2014, we completed our acquisition of Savannah River and its wholly-owned subsidiary, Savannah River Banking Company. Under the terms of the merger agreement, Savannah River shareholders received either $11.00 in cash or 1.0618 shares of the Company’s common stock, or a combination thereof, for each Savannah River share they owned immediately prior to the merger, subject to the limitation that 60% of the outstanding shares of Savannah River common stock were exchanged for cash and 40% of the outstanding shares of Savannah River common stock were exchanged for shares of the Company’s common stock. The Company issued shares of common stock in the merger. The Company and the Bank exceeded the regulatory capital ratios at December 31, 2016 and 2015, as set forth in the following table: (In thousands) Required % Actual % Excess % The Bank: December 31, 2016 Risk Based Capital Tier 1 $ 38,011 6.0 % $ 87,657 13.8 % $ 49,646 7.8 % Total Capital 50,681 8.0 % 92,871 14.7 % 42,190 6.7 % CET1 28,508 4.5 % 87,657 13.8 % 59,149 9.3 % Tier 1 Leverage 35,875 4.0 % 87,657 9.8 % 51,782 5.8 % December 31, 2015 Risk Based Capital Tier 1 $ 33,640 6.0 % $ 82,512 14.7 % $ 48,872 8.7 % Total Capital 44,855 8.0 % 87,108 15.5 % 42,253 7.5 % CET1 25,230 4.5 % 82,512 14.7 % 57,282 10.2 % Tier 1 Leverage 33,923 4.0 % 82,512 9.7 % 48,589 5.7 % The Company: December 31, 2016 Risk Based Capital Tier 1 $ 38,126 6.0 % $ 91,966 14.5 % $ 53,840 8.5 % Total Capital 50,835 8.0 % 97,180 15.3 % 46,345 7.3 % CET1 28,595 4.5 % 77,466 12.2 % 48,871 7.7 % Tier 1 Leverage 35,957 4.0 % $ 91,966 10.2 % 56,009 6.2 % December 31, 2015 Risk Based Capital Tier 1 $ 33,782 6.0 % $ 86,682 15.4 % $ 52,900 9.4 % Total Capital 45,043 8.0 % 91,278 16.2 % 46,235 8.2 % CET1 25,336 4.5 % 72,444 12.9 % 47,108 8.4 % Tier 1 Leverage 34,021 4.0 % 86,682 10.2 % 52,661 6.2 % The Federal Reserve has issued a policy statement regarding the payment of dividends by bank holding companies. In general, the Federal Reserve’s policies provide that dividends should be paid only out of current earnings and only if the prospective rate of earnings retention by the bank holding company appears consistent with the organization’s capital needs, asset quality and overall financial condition. The Federal Reserve’s policies also require that a bank holding company serve as a source of financial strength to its subsidiary banks by standing ready to use available resources to provide adequate capital funds to those banks during periods of financial stress or adversity and by maintaining the financial flexibility and capital-raising capacity to obtain additional resources for assisting its subsidiary banks where necessary. In addition, under the prompt corrective action regulations, the ability of a bank holding company to pay dividends may be restricted if a subsidiary bank becomes undercapitalized. These regulatory policies could affect the ability of the Company to pay dividends or otherwise engage in capital distributions. The Company’s principal source of cash flow, including cash flow to pay dividends to its shareholders, is dividends it receives from the Bank. Statutory and regulatory limitations apply to the Bank’s payment of dividends to the Company. As a South Carolina chartered bank, the Bank is subject to limitations on the amount of dividends that it is permitted to pay. Unless otherwise instructed by the S.C. Board, 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 S.C. Board. The FDIC also has the authority under federal law to enjoin a bank from engaging in what in its opinion constitutes an unsafe or unsound practice in conducting its business, including the payment of a dividend under certain circumstances. If our Bank is not permitted to pay cash dividends to the Company, it is unlikely that we would be able to pay cash dividends on our common stock. Moreover, holders of our common stock are entitled to receive dividends only when, and if declared by our board of directors. Although we have historically paid cash dividends on our common stock, we are not required to do so and our board of directors could reduce or eliminate our common stock dividend in the future. |
PARENT COMPANY FINANCIAL INFORM
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL INFORMATION | Note 21—PARENT COMPANY FINANCIAL INFORMATION The balance sheets, statements of operations and cash flows for First Community Corporation (Parent Only) follow: Condensed Balance Sheets At December 31, (Dollars in thousands) 2016 2015 Assets: Cash on deposit $ 2,732 $ 2,088 Securities purchased under agreement to resell 128 128 Investment securities available-for-sale — 417 Land held for sale 1,055 1,080 Investment in bank subsidiary 92,053 89,368 Other 1,005 1,045 Total assets $ 96,973 $ 94,126 Liabilities: Junior subordinated debentures $ 14,964 $ 14,964 Other 148 124 Total liabilities 15,112 15,088 Shareholders’ equity 81,861 79,038 Total liabilities and shareholders’ equity $ 96,973 $ 94,126 Condensed Statements of Operations Year ended December 31, (Dollars in thousands) 2016 2015 2014 Income: Interest and dividend income $ 126 $ 58 $ 40 Gain on early extinguishment of debtnote — 130 — Equity in undistributed earnings of subsidiary 4,752 4,690 4,510 Dividend income from bank subsidiary 2,606 2,181 1,369 Total income 7,484 7,059 5,919 Expenses: Interest expense 493 446 427 Other 570 792 708 Total expense 1,063 1,238 1,135 Income before taxes 6,421 5,821 4,784 Income tax benefit (261 ) (306 ) (337 ) Net income $ 6,682 $ 6,127 $ 5,121 Condensed Statements of Cash Flows Year ended December 31, (Dollars in thousands) 2016 2015 2014 Cash flows from operating activities: Net income $ 6,682 $ 6,127 $ 5,121 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed earnings of subsidiary (4,752 ) (4,690 ) (4,510 ) Gain on early extinguishment of debt — 130 — Other-net 463 63 647 Net cash provided by operating activities 2,393 1,630 1,258 Cash flows from investing activities: Proceeds from sale of securities available-for-sale 417 — — Net cash provided by investing activities 417 — — Cash flows from financing activities: Dividends paid: Common stock (2,117 ) (1,833 ) (1,484 ) Proceeds from issuance of common stock 304 229 173 Restricted shares surrendered (353 ) (98 ) — Repayment of long term debt — (370 ) — Net cash used in financing activities (2,166 ) (2,072 ) (1,311 ) Increase (decrease) in cash and cash equivalents 644 (442 ) (53 ) Cash and cash equivalents, beginning of year 2,088 2,530 2,583 Cash and cash equivalents, end of year $ 2,732 $ 2,088 $ 2,530 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 22—SUBSEQUENT EVENTS Subsequent events are 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 balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or disclosure other than the following: |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | Note 23—QUARTERLY FINANCIAL DATA (UNAUDITED) The following provides quarterly financial data for 2016 and 2015 (dollars in thousands, except per share amounts). 2016 Fourth Third Second First Interest income $ 7,510 $ 7,400 $ 7,459 $ 7,137 Net interest income 6,794 6,651 6,677 6,337 Provision for loan losses 238 179 217 140 Gain on sale of securities — 478 64 59 Income before income taxes 2,238 2,276 2,391 1,944 Net income 1,792 1,677 1,745 1,468 Net income available to common shareholders 1,792 1,677 1,745 1,468 Net income per share, basic $ 0.27 $ 0.26 $ 0.27 $ 0.22 Net income per share, diluted $ 0.26 $ 0.25 $ 0.26 $ 0.22 2015 Fourth Third Second First Interest income $ 7,203 $ 7,114 $ 7,049 $ 7,283 Net interest income 6,348 6,253 6,204 6,448 Provision for loan losses 148 193 391 406 Gain on sale of securities 84 — 167 104 Income before income taxes 2,169 2,322 1,989 1,923 Net income 1,601 1,679 1,443 1,404 Net income available to common shareholders 1,601 1,679 1,443 1,404 Net income per share, basic $ 0.24 $ 0.26 $ 0.22 $ 0.22 Net income per share, diluted $ 0.24 $ 0.25 $ 0.22 $ 0.21 2014 Fourth Third Second First Interest income $ 7,078 $ 6,968 $ 6,849 $ 6,403 Net interest income 6,192 6,096 5,947 5,496 Provision for loan losses 179 152 400 150 Gain on sale of securities 80 16 78 8 Income before income taxes 2,063 2,184 1,661 1,195 Net income 1,506 1,552 1,201 862 Net income available to common shareholders 1,506 1,552 1,201 862 Net income per share, basic $ 0.23 $ 0.23 $ 0.18 $ 0.14 Net income per share, diluted $ 0.22 $ 0.23 $ 0.18 $ 0.14 The Company’s reportable segments represent the distinct product lines the Company offers and are viewed separately for strategic planning by management. The Company has four reportable segments: · Commercial and retail banking: The Company’s primary business is to provide deposit and lending products and services to its commercial and retail customers. · Mortgage banking: This segment provides mortgage origination services for loans that will be sold to investors in the secondary market. · Investment advisory and non-deposit: This segment provides investment advisory services and non-deposit products. · Corporate: This segment includes the parent company financial information, including interest on parent company debt and dividend income received from First Community Bank (the “Bank”). The following tables present selected financial information for the Company’s reportable business segments for the years ended December 31, 2016, December 31, 2015 and December 31, 2014. Year ended December 31, 2016 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 29,186 $ 194 $ — $ 2,732 $ (2,606 ) $ 29,506 Interest expense 2,553 — — 494 — 3,047 Net interest income $ 26,633 $ 194 $ — $ 2,238 $ (2,606 ) $ 26,459 Provision for loan losses 774 — — — — 774 Noninterest income 4,423 3,382 1,135 — — 8,940 Noninterest expense 21,743 2,459 1,005 569 — 25,776 Net income before taxes $ 8,539 $ 1,117 $ 130 $ 1,669 $ (2,606 ) $ 8,849 Income tax provision (benefit) 2,428 — — (261 ) — 2,167 Net income $ 6,111 $ 1,117 $ 130 $ 1,930 $ (2,606 ) $ 6,682 Year ended December 31, 2015 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 28,389 $ 202 $ — $ 2,239 $ (2,181 ) $ 28,649 Interest expense 2,950 — — 446 — 3,396 Net interest income $ 25,439 $ 202 $ — $ 1,793 $ (2,181 ) $ 25,253 Provision for loan losses 1,138 — — — — 1,138 Noninterest income 4,117 3,432 1,287 130 — 8,966 Noninterest expense 20,393 2,543 950 792 — 24,678 Net income before taxes $ 8,025 $ 1,091 $ 337 $ 1,131 $ (2,181 ) $ 8,403 Income tax provision (benefit) 2,582 — — (306 ) — 2,276 Net income $ 5,443 $ 1,091 $ 337 $ 1,437 $ (2,181 ) $ 6,127 Year ended December 31, 2014 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 27,110 $ 148 $ — $ 1,409 $ (1,369 ) $ 27,298 Interest expense 3,141 — — 427 — 3,568 Net interest income $ 23,969 $ 148 $ — $ 982 $ (1,369 ) $ 23,730 Provision for loan losses 880 — — — — 880 Noninterest income 3,759 3,186 1,268 — — 8,213 Noninterest expense 19,915 2,401 936 708 — 23,960 Net income before taxes $ 6,933 $ 933 $ 332 $ 274 $ (1,369 ) $ 7,103 Income tax provision (benefit) 2,319 — — (337 ) — 1,982 Net income $ 4,614 $ 933 $ 332 $ 611 $ (1,369 ) $ 5,121 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Total Assets as of December 31, 2016 $ 904,568 $ 8,158 $ 32 $ 98,210 $ (96,175 ) $ 914,793 Total Assets as of December 31, 2015 $ 855,888 $ 4,355 $ 34 $ 93,296 $ (90,839 ) $ 862,734 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. These principles require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses. The estimation process includes management’s judgment as to future losses on existing loans based on an internal review of the loan portfolio, including an analysis of the borrower’s current financial position, the consideration of current and anticipated economic conditions and the effect on specific borrowers. In determining the collectability of loans management also considers the fair value of underlying collateral. Various regulatory agencies, as an integral part of their examination process, review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Because of these factors it is possible that the allowance for loan losses could change materially. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, due from banks, interest-bearing bank balances, federal funds sold and securities purchased under agreements to resell. Generally federal funds are sold for a one-day period and securities purchased under agreements to resell mature in less than 90 days. |
Investment Securities | Investment Securities Investment securities are classified as either held-to-maturity, available-for-sale or trading securities. In determining such classification, securities that the Company has the positive intent and ability to hold to maturity are classified as held-to maturity and are carried at amortized cost. Securities classified as available-for-sale are carried at estimated fair values with unrealized gains and losses included in shareholders’ equity on an after tax basis. Trading securities are carried at estimated fair value with unrealized gains and losses included in non-interest income (See Note 4). Gains and losses on the sale of available-for-sale securities and trading securities are determined using the specific identification method. Declines in the fair value of individual held-to-maturity and available-for-sale securities below their cost that are judged to be other than temporary are written down to fair value and charged to income in the Consolidated Statement of Income. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. |
Mortgage Loans Held for Sale | Mortgage Loans Held for S The Company originates fixed rate residential loans on a servicing released basis in the secondary market. Loans closed but not yet settled with an investor, are carried in the Company’s loans held for sale portfolio. These loans are primarily fixed rate residential loans that have been originated in the Company’s name and have closed. Virtually all of these loans have commitments to be purchased by investors at a locked in price with the investors on the same day that the loan was locked in with the Company’s customers. Therefore, these loans present very little market risk for the Company. The Company usually delivers to, and receives funding from, the investor within 30 days. Commitments to sell these loans to the investor are considered derivative contracts and are sold to investors on a “best efforts” basis. The Company is not obligated to deliver a loan or pay a penalty if a loan is not delivered to the investor. As a result of the short-term nature of these derivative contracts, the fair value of the mortgage loans held for sale in most cases is the same as the value of the loan amount at its origination . |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loan receivables that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest is recognized over the term of the loan based on the loan balance outstanding. Fees charged for originating loans, if any, are deferred and offset by the deferral of certain direct expenses associated with loans originated. The net deferred fees are recognized as yield adjustments by applying the interest method. The allowance for loan losses is maintained at a level believed to be adequate by management to absorb potential losses in the loan portfolio. Management’s determination of the adequacy of the allowance is based on an evaluation of the portfolio, past loss experience, economic conditions and volume, growth and composition of the portfolio. The Company considers a loan to be impaired when, based upon current information and events, it is believed that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans that are considered impaired are accounted for at the lower of carrying value or fair value. The accrual of interest on impaired loans is discontinued when, in management’s opinion, the borrower may be unable to meet payments as they become due, generally when a loan becomes 90 days past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received first to principal and then to interest income. |
Property and Equipment | Property and Equipment Property 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 39 years for buildings and up to 10 years for furniture, fixtures and equipment. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the cost in excess of fair value of net assets acquired (including identifiable intangibles) in purchase transactions. Other intangible assets represent premiums paid for acquisitions of core deposits (core deposit intangibles). Core deposit intangibles are being amortized on a straight-line basis over seven years. Goodwill and identifiable intangible assets are reviewed for impairment annually or whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. The annual valuation is performed on September 30 of each year. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned includes real estate acquired through foreclosure. Other real estate owned is carried at the lower of cost (principal balance at date of foreclosure) or fair value minus estimated cost to sell. Any write-downs at the date of foreclosure are charged to the allowance for loan losses. Expenses to maintain such assets, subsequent changes in the valuation allowance, and gains or losses on disposal are included in other expenses. |
Comprehensive Income (Loss) | Comprehensive Income (loss) The Company reports comprehensive income (loss) in accordance with Accounting Standards Codification (“ASC”) 220, “Comprehensive Income.” ASC 220 requires that all items that are required to be reported under accounting standards as comprehensive income (loss) be reported in a financial statement that is displayed with the same prominence as other financial statements. The disclosures requirements have been included in the Company’s consolidated statements of comprehensive income (loss). |
Mortgage Origination Fees | Mortgage Origination Fees Mortgage origination fees relate to activities comprised of accepting residential mortgage applications, qualifying borrowers to standards established by investors and selling the mortgage loans to the investors under pre-existing commitments. The related fees received by the Company for these services are recognized at the time the loan is closed. |
Advertising Expense | Advertising Expense Advertising and public relations costs are generally expensed as incurred. External costs incurred in producing media advertising are expensed the first time the advertising takes place. External costs relating to direct mailing costs are expensed in the period in which the direct mailings are sent. Advertising expense totaled $820 thousand, $806 thousand and $609 thousand for the years ended December 31, 2016, 2015, and 2014 respectively. |
Income Taxes | Income Taxes A deferred income tax liability or asset is recognized for the estimated future effects attributable to differences in the tax bases of assets or liabilities and their reported amounts in the financial statements as well as operating loss and tax credit carry forwards. The deferred tax asset or liability is measured using the enacted tax rate expected to apply to taxable income in the period in which the deferred tax asset or liability is expected to be realized. In 2006, the FASB issued guidance related to Accounting for Uncertainty in Income Taxes. This guidance clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with FASB ASC Topic 740-10, “Income Taxes.” It also prescribes a recognition threshold and measurement of a tax position taken or expected to be taken in an enterprise’s tax return. |
Stock Based Compensation Cost | Stock Based Compensation Cost The Company accounts for stock based compensation under the fair value provisions of the accounting literature. Compensation expense is recognized in salaries and employee benefits. The fair value of each grant is estimated on the date of grant using the Black-Sholes option pricing model. No options were granted in 2016, 2015 or 2014. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted average number of shares of common stock and common stock equivalents. Common stock equivalents consist of stock options and warrants and are computed using the treasury stock method. |
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 FASB ASC Topic 805, “ Business Combinations Fair Value Measurements and Disclosures.” Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, found in FASB ASC Topic 310-30, “ Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality,” Accounting for Certain Loans or Debt Securities Acquired in a Transfer |
Segment Information | Segment Information ASC Topic 280-10, “ Segment Reporting |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In January 2015, the FASB issued guidance to eliminate from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect these amendments to have a material effect on its financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under U.S. GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. These amendments did not have a material effect on the Company’s financial statements. In April 2015, the FASB issued guidance which provides guidance to customers about whether a cloud computing arrangement includes a software license. The amendments became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. These amendments did not have a material effect on the Company’s financial statements. In May 2015, the FASB issued guidance which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. These amendments did not have a material effect on the Company’s financial statements. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB issued amendments to the Interest topic of the Accounting Standards Codification to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements. In September 2015, the FASB amended the Business Combinations topic of the Accounting Standards Codification to simplify the accounting for adjustments made to provisional amounts recognized in a business combination by eliminating the requirement to retrospectively account for those adjustments. The amendments became effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. All entities are required to apply the amendments prospectively to adjustments to provisional amounts that occur after the effective date. These amendments did not have a material effect on the Company’s financial statements. In January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB amended the Leases topic of the Accounting Standards Codification to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In March 2016, the FASB amended the Liabilities topic of the Accounting Standards Codification to address the current and potential future diversity in practice related to the derecognition of a prepaid stored-value product liability. The amendments will be effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance using a modified retrospective transition method by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year in which the guidance is effective to each period presented. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB amended the Derivatives and Hedging topic of the Accounting Standards Codification to clarify that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The amendments will be effective for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company will apply the guidance prospectively to each period presented. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB amended the Investments—Equity Method and Joint Ventures topic of the Accounting Standards Codification to eliminate the requirement to retroactively adopt the equity method of accounting. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company will apply the guidance prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the Accounting Standards Codification to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not expect these amendments to have a material effect on its financial statements. In April 2016, the FASB amended the Revenue from Contracts with Customers topic of the Accounting Standards Codification to clarify guidance related to identifying performance obligations and accounting for licenses of intellectual property. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In May 2016, the FASB amended the Revenue from Contracts with Customers topic of the Accounting Standards Codification to clarify guidance related to collectability, noncash consideration, presentation of sales tax, and transition. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In August 2016, the FASB amended the Statement of Cash Flows topic of the Accounting Standards Codification to clarify how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements. In October 2016, the FASB amended the Income Taxes topic of the Accounting Standards Codification to modify the accounting for intra-entity transfers of assets other than inventory. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In October 2016, the FASB amended the Consolidation topic of the Accounting Standards Codification to revise the consolidation guidance on how a reporting entity that is the single decision maker of a variable interest entity (VIE) should treat indirect interests in the entity held through related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The amendments will be effective for the Company for fiscal years beginning after December 15, 2016 including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements. In November 2016, the FASB amended the Statement of Cash Flows topic of the Accounting Standards Codification to clarify how restricted cash is presented and classified in the statement of cash flows. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In December 2016, the FASB issued amendments to clarify the Accounting Standards Codification (ASC), correct unintended application of guidance, and make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments were effective upon issuance (December 14, 2016) for amendments that do not have transition guidance. Amendments that are subject to transition guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. In December 2016, the FASB issued technical corrections and improvements to the Revenue from Contracts with Customers Topic. These corrections make a limited number of revisions to several pieces of the revenue recognition standard issued in 2014. The effective date and transition requirements for the technical corrections will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. 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. |
Risk and Uncertainties | Risk and Uncertainties In the normal course of 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 reprice at different speeds, or on a different basis, than its interest-earning assets. Credit risk is the risk of default on the Company’s loan and investment portfolios that results from borrowers’ or issuer’s inability or unwillingness to make contractually required payments. Market risk reflects changes in the value of collateral underlying loans and investments and the valuation of real estate held by the Company. The Company is subject to regulations of various governmental agencies (regulatory risk). These regulations can and do change significantly from period to period. The Company also undergoes periodic examinations by the regulatory agencies, which may subject it to further changes with respect to asset valuations, amounts of required loan loss allowances and operating restrictions from regulators’ judgments based on information available to them at the time of their examination. |
Reclassifications | Reclassifications Certain captions and amounts in the 2014 and 2015 consolidated financial statements were reclassified to conform to the 2016 presentation. |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and estimated fair values of available-for-sale | AVAILABLE-FOR-SALE: (Dollars in thousands) Amortized Gross Gross Fair Value December 31, 2016: US Treasury securities $ 1,538 $ — $ 18 $ 1,520 Government sponsored enterprises 959 38 — 997 Mortgage-backed securities 145,696 480 1,878 144,298 Small Business Administration pools 50,560 208 584 50,184 State and local government 54,702 907 1,075 54,534 Corporate and other securities 1,932 — 71 1,861 $ 255,387 $ 1,633 $ 3,626 $ 253,394 December 31, 2015: US Treasury securities $ 1,547 $ — $ 25 $ 1,522 Government sponsored enterprises 950 42 — 992 Mortgage-backed securities 146,935 498 1,172 146,261 Small Business Administration pools 57,474 355 501 57,328 State and local government 55,294 2,037 36 57,295 Corporate and other securities 1,349 — 60 1,289 $ 263,549 $ 2,932 $ 1,794 $ 264,687 |
Schedule of amortized cost and estimated fair values of held-to-maturity securities | HELD-TO-MATURITY (Dollars in thousands) Amortized Gross Gross Fair Value December 31, 2016: State and local government $ 17,193 $ 54 $ 133 $ 17,114 $ 17,193 $ 54 $ 133 $ 17,114 December 31, 2015: State and local government $ 17,371 $ 211 $ 27 $ 17,555 $ 17,371 $ 211 $ 27 $ 17,555 |
Schedule of the amortized cost and fair value of investment securities by expected maturity | (Dollars in thousands) Available-for-sale Held-to-maturity Amortized Fair Amortized Fair Due in one year or less $ 6,013 $ 5,966 $ — $ — Due after one year through five years 122,954 122,490 611 606 Due after five years through ten years 72,521 71,307 8,229 8,171 Due after ten years 53,899 53,631 8,353 8,337 $ 255,387 $ 253,394 $ 17,193 $ 17,114 |
Schedule of gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position | Less than 12 months 12 months or more Total December 31, 2016 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-sale securities: US Treasury $ 1,520 $ 18 $ — $ — $ 1,520 $ 18 Government Sponsored Enterprise mortgage-backed securities 77,389 1,597 16,655 281 94,044 1,878 Small Business Administration pools 15,213 206 23,382 378 38,595 584 State and local government 17,502 1,075 — — 17,502 1,075 Corporate bonds and other — — 801 71 801 71 Total $ 111,624 $ 2,896 $ 40,838 $ 730 $ 152,462 $ 3,626 Less than 12 months 12 months or more Total December 31, 2016 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Held-to-maturity securities: State and local government $ 10,245 $ 133 $ — $ — $ 10,245 $ 133 Total $ 10,245 $ 133 $ — $ — $ 10,245 $ 133 Less than 12 months 12 months or more Total December 31, 2015 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-sale securities: US Treasury $ 1,522 $ 25 $ — $ — $ 1,522 $ 25 Government Sponsored Enterprise mortgage-backed securities 69,112 731 17,593 439 86,705 1,170 Small Business Administration pools 13,386 153 25,709 348 39,095 501 Non-agency mortgage-backed securities — — 186 2 186 2 State and local government 1,461 8 1,362 28 2,823 36 Corporate bonds and other — — 812 60 812 60 Total $ 85,481 $ 917 $ 45,662 $ 877 $ 131,143 $ 1,794 Less than 12 months 12 months or more Total December 31, 2015 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Held-to-maturity securities: State and local government $ 3,473 $ 24 $ 444 $ 3 $ 3,917 $ 27 Total $ 3,473 $ 24 $ 444 $ 3 $ 3,917 $ 27 |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Summary of loans by category | December 31, (Dollars in thousands) 2016 2015 Commercial, financial and agricultural $ 42,704 $ 37,809 Real estate: Construction 45,746 35,829 Mortgage-residential 47,472 49,077 Mortgage-commercial 371,112 326,978 Consumer: Home equity 31,368 30,906 Other 8,307 8,592 Total $ 546,709 $ 489,191 |
Schedule of activity in the allowance for loan losses | Years ended December 31, (Dollars in thousands) 2016 2015 2014 Balance at the beginning of year $ 4,596 $ 4,132 $ 4,219 Provision for loan losses 774 1,138 881 Charged off loans (239 ) (807 ) (1,111 ) Recoveries 83 133 143 Balance at end of year $ 5,214 $ 4,596 $ 4,132 |
Schedule of activity in the allowance for loan losses and the recorded investment in loans receivable | (Dollars in thousands) Real estate Real estate Real estate Mortgage Mortgage Consumer Consumer Commercial Construction Residential Commercial Home equity Other Unallocated Total 2016 Allowance for loan losses: Beginning balance $ 75 $ 51 $ 223 $ 2,036 $ 127 $ 37 $ 2,047 $ 4,596 Charge-offs — — (11 ) (136 ) (20 ) (72 ) — (239 ) Recoveries 5 — 40 21 3 14 — 83 Provisions 65 53 186 872 43 148 (593 ) 774 Ending balance $ 145 $ 104 $ 438 $ 2,793 $ 153 $ 127 $ 1,454 $ 5,214 Ending balances: $ — $ — $ 2 $ 4 $ — $ — $ — $ 6 Collectively evaluated for impairment 145 104 436 2,789 153 127 1,454 5,208 Loans receivable: Ending balance-total $ 42,704 $ 45,746 $ 47,472 $ 371,112 $ 31,368 $ 8,307 $ — $ 546,709 Ending balances: — — 639 5,124 56 — — 5,819 Collectively evaluated for impairment 42,704 45,746 46,833 365,988 31,312 8,307 — 540,890 (Dollars in thousands) Real estate Real estate Real estate Mortgage Mortgage Consumer Consumer Commercial Construction Residential Commercial Home equity Other Unallocated Total 2015 Allowance for loan losses: Beginning balance $ 67 $ 45 $ 179 $ 1,572 $ 134 $ 44 $ 2,091 $ 4,132 Charge-offs (69 ) — (50 ) (626 ) — (62 ) — (807 ) Recoveries 6 — 7 33 3 84 — 133 Provisions 71 6 87 1,057 (10 ) (29 ) (44 ) 1,138 Ending balance $ 75 $ 51 $ 223 $ 2,036 $ 127 $ 37 $ 2,047 $ 4,596 Ending balances: $ — $ — $ 3 $ — $ — $ — $ — $ 3 Collectively evaluated for impairment 75 51 220 2,036 127 37 2,047 4,593 Loans receivable: Ending balance-total $ 37,809 $ 35,829 $ 49,077 $ 326,978 $ 30,906 $ 8,592 $ — $ 489,191 Ending balances: 9 — 848 5,620 — — — 6,477 Collectively evaluated for impairment 37,800 35,829 48,229 321,358 30,906 8,592 — 482,714 (Dollars in thousands) Real estate Real estate Real estate Mortgage Mortgage Consumer Consumer Commercial Construction Residential Commercial Home equity Other Unallocated Total 2014 Allowance for loan losses: Beginning balance $ 233 $ 26 $ 291 $ 1,117 $ 112 $ 80 $ 2,360 $ 4,219 Charge-offs (54 ) — (52 ) (879 ) (17 ) (109 ) — (1,111 ) Recoveries 110 — 10 — 6 17 — 143 Provisions (222 ) 19 (70 ) 1,334 33 56 (269 ) 881 Ending balance $ 67 $ 45 $ 179 $ 1,572 $ 134 $ 44 $ 2,091 $ 4,132 Ending balances: $ — $ — $ 4 $ 57 $ — $ — $ — $ 61 Collectively evaluated for impairment 67 45 175 1,515 134 44 2,091 4,071 Loans receivable: Ending balance-total $ 33,403 $ 27,545 $ 48,510 $ 293,186 $ 33,000 $ 8,200 $ — $ 443,844 Ending balances: 55 — 1,078 7,334 92 — — 8,559 Collectively evaluated for impairment 33,348 27,545 47,432 285,852 32,908 8,200 — 435,285 |
Schedule of related party loan | (Dollars in thousands) For the years ended December 31, 2016 2015 Balance, beginning of year $ 7,037 $ 3,969 New Loans 481 4,332 Less loan repayments 1,415 1,264 Balance, end of year $ 6,103 $ 7,037 |
Schedule of loans individually evaluated and considered impaired | The following table presents at December 31, 2016, 2015 and 2014, loans individually evaluated and considered impaired under FASB ASC 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing troubled debt restructurings. December 31, (Dollars in thousands) 2016 2015 2014 Total loans considered impaired at year end $ 5,819 $ 6,477 $ 8,559 Loans considered impaired for which there is a related allowance for loan loss: Outstanding loan balance $ 224 $ 49 $ 1,959 Related allowance $ 6 $ 3 $ 61 Loans considered impaired and previously written down to fair value $ 5,595 $ 6,428 $ 6,600 Average impaired loans $ 8,727 $ 9,518 $ 10,900 Amount of interest earned during period of impairment $ 112 $ 64 $ 163 |
Schedule of loan category and loans individually evaluated and considered impaired | (Dollars in thousands) December 31, 2016 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ — $ — $ — $ — $ — Real estate: Construction — — — — — Mortgage-residential 593 603 — 660 — Mortgage-commercial 4,946 6,821 — 7,777 98 Consumer: Home Equity 56 56 — 56 — Other — — — — — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 46 46 2 48 2 Mortgage-commercial 178 178 4 186 12 Consumer: Home Equity — — — — — Other — — — — — Total: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 639 649 2 708 2 Mortgage-commercial 5,124 6,999 4 7,963 110 Consumer: Home Equity 56 56 — 56 — Other — — — — — $ 5,819 $ 7,704 $ 6 $ 8,727 $ 112 (Dollars in thousands) December 31, 2015 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ 9 $ 9 $ — $ 13 $ — Real estate: Construction — — — — — Mortgage-residential 799 874 — 1,082 1 Mortgage-commercial 5,620 7,548 — 8,372 60 Consumer: Home Equity — — — — — Other — — — — — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 49 49 3 51 3 Mortgage-commercial — — — — — Consumer: Home Equity — — — — — Other — — — — — Total: Commercial 9 9 — 13 — Real estate: Construction — — — — — Mortgage-residential 848 923 3 1,133 4 Mortgage-commercial 5,620 7,548 — 8,372 60 Consumer: Home Equity — — — — — Other — — — — — $ 6,477 $ 8,480 $ 3 $ 9,518 $ 64 (Dollars in thousands) December 31, 2014 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ 55 $ 112 $ — $ 132 $ 3 Real estate: Construction — — — — — Mortgage-residential 1,025 1,167 — 1,071 8 Mortgage-commercial 5,428 6,469 — 7,634 64 Consumer: Home Equity 92 97 — 83 — Other — — — — — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 53 53 4 54 3 Mortgage-commercial 1,906 2,134 57 1,926 85 Consumer: Home Equity — — — — — Other — — — — — Total: Commercial 55 112 — 132 3 Real estate: Construction — — — — — Mortgage-residential 1,078 1,220 4 1,125 11 Mortgage-commercial 7,334 8,603 57 9,560 149 Consumer: Home Equity 92 97 — 83 — Other — — — — — $ 8,559 $ 10,032 $ 61 $ 10,900 $ 163 |
Schedule of loan category and loan by risk categories | (Dollars in thousands) December 31, 2016 Special Pass Mention Substandard Doubtful Total Commercial, financial & agricultural $ 42,486 $ 218 $ — $ — $ 42,704 Real estate: Construction 45,746 — — — 45,746 Mortgage – residential 45,751 622 1,099 — 47,472 Mortgage – commercial 358,767 5,773 6,572 — 371,112 Consumer: Home Equity 30,929 180 259 — 31,368 Other 8,301 6 — — 8,307 Total $ 531,980 $ 6,799 $ 7,930 $ — $ 546,709 (Dollars in thousands) December 31, 2015 Special Pass Mention Substandard Doubtful Total Commercial, financial & agricultural $ 37,501 $ 299 $ 9 $ — $ 37,809 Real estate: Construction 35,374 455 — — 35,829 Mortgage – residential 46,580 1,378 1,119 — 49,077 Mortgage – commercial 310,367 7,555 9,056 — 326,978 Consumer: Home Equity 30,587 180 139 — 30,906 Other 8,587 1 4 — 8,592 Total $ 468,996 $ 9,868 $ 10,327 $ — $ 489,191 |
Schedule of loan category and present loans past due and on non-accrual status | (Dollars in thousands) 30-59 60-89 Days Greater than Nonaccrual Total Past Current Total Loans Commercial $ 11 $ — $ — $ — $ 11 $ 42,693 $ 42,704 Real estate: Construction — — — — — 45,746 45,746 Mortgage-residential 194 145 32 593 964 46,508 47,472 Mortgage-commercial 995 337 — 3,400 4,732 366,380 371,112 Consumer: Home equity 59 64 16 56 195 31,173 31,368 Other 16 1 5 — 22 8,285 8,307 Total $ 1,275 $ 547 $ 53 $ 4,049 $ 5,924 $ 540,785 $ 546,709 (Dollars in thousands) 30-59 Days 60-89 Days Greater than Nonaccrual Total Past Current Total Loans Commercial $ 5 $ — $ — $ 9 $ 14 $ 37,795 $ 37,809 Real estate: Construction — — — — — 35,829 35,829 Mortgage-residential 126 195 — 799 1,120 47,957 49,077 Mortgage-commercial 1,180 290 — 4,031 5,501 321,477 326,978 Consumer: Home equity 135 — — — 135 30,771 30,906 Other 4 4 — — 8 8,584 8,592 Total $ 1,450 $ 489 $ — $ 4,839 $ 6,778 $ 482,413 $ 489,191 |
Schedule by loan category, present loans determined to be TDRs | Troubled Debt Restructurings For the twelve months ended December 31, 2014 (Dollars in thousands) Pre-Modification Post-Modification Number Outstanding Outstanding of Recorded Recorded Contracts Investment Investment TDRs Mortgage-Commercial 1 $ 1,664 $ 1,664 Mortgage-Consumer 1 180 180 Total TDRs 2 $ 1,844 $ 1,844 |
Schedule by loan category, present loans determined to be TDRs in the last twelve months that had payment defaults during the period | Troubled Debt For the twelve months Restructurings December 31, 2014 that subsequently defaulted Number this period of Recorded (Dollars in thousands) Contracts Investment Mortgage-Consumer 1 $ 180 Total TDRs 1 $ 180 |
Schedule for changes in the accretable yield for PCI loans | (Dollars in thousands) Year Year Year Accretable yield, beginning of period $ 92 $ 75 $ — Additions — — 272 Accretion (170 ) (544 ) (197 ) Reclassification of nonaccretable difference due to improvement in 112 561 — Other changes, net — — — Accretable yield, end of period $ 34 $ 92 $ 75 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and estimated fair value by classification Level of the Company's financial instruments | December 31, 2016 Fair Value (Dollars in thousands) Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and short term investments $ 21,999 $ 21,999 $ 21,999 $ — $ — Held-to-maturity securities 17,193 17,114 — 17,114 — Available-for-sale securities 253,394 253,394 801 251,593 1,000 Other investments, at cost 1,809 1,809 — — 1,809 Loans held for sale 5,707 5,707 — 5,707 — Net loans receivable 541,495 540,487 — 534,674 5,813 Accrued interest 2,925 2,925 2,925 — — Financial liabilities: Non-interest bearing demand $ 182,915 $ 182,915 $ — $ 182,915 $ — NOW and money market accounts 327,459 327,459 — 327,459 — Savings 75,012 75,012 — 75,012 — Time deposits 181,236 181,638 — 181,638 — Total deposits 766,622 767,024 — 767,024 — Federal Home Loan Bank Advances 24,035 24,518 — 24,518 — Short term borrowings 19,527 19,527 — 19,527 — Junior subordinated debentures 14,964 15,258 — 15,258 — Accrued interest payable 602 602 602 — — December 31, 2015 Fair Value (Dollars in thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and short term investments $ 22,941 $ 22,941 $ 22,941 $ — $ — Held-to-maturity securities 17,371 17,555 — 17,555 — Available-for-sale securities 264,687 264,687 812 263,458 417 Other investments, at cost 1,783 1,783 — — 1,783 Loans held for sale 2,962 2,962 — 2,962 — Net loans receivable 484,595 484,669 — 478,195 6,474 Accrued interest 2,877 2,877 2,877 — — Financial liabilities: Non-interest bearing demand $ 156,247 $ 156,247 $ — $ 156,247 $ — NOW and money market accounts 318,308 318,308 — 318,308 — Savings 60,699 60,699 — 60,699 — Time deposits 180,897 181,325 — 181,325 — Total deposits 716,151 716,579 — 716,579 — Federal Home Loan Bank Advances 24,788 25,841 — 25,841 — Short term borrowings 21,033 21,033 — 21,033 — Junior subordinated debentures 14,964 14,954 — 14,954 — Accrued interest payable 652 652 652 — — |
Schedule of fair value for each category of assets carried at fair value that are measured on a recurring basis | (Dollars in thousands) Description December 31, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities US Treasury Securities $ 1,520 $ — $ 1,520 $ — Government sponsored enterprises 997 — 997 — Mortgage-backed securities 144,298 — 144,298 — Small Business Administration securities 50,184 — 50,184 — State and local government 54,534 — 54,534 — Corporate and other securities 1,861 801 60 1,000 Total $ 253,394 $ 801 $ 251,593 $ 1,000 (Dollars in thousands) Description December 31 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Available for sale securities US Treasury Securities $ 1,522 $ — $ 1,522 $ — Government sponsored enterprises 992 — 992 — Mortgage-backed securities 146,261 — 146,261 — Small Business Administration securities 57,328 — 57,328 — State and local government 57,295 — 57,295 — Corporate and other securities 1,289 812 60 417 Total $ 264,687 $ 812 $ 263,458 $ 417 |
Schedule reconciling the changes in Level 3 financial instruments measured on a recurring basis | The following tables reconcile the changes in Level 3 financial instruments for the year ended December 31, 2016 and 2015 measured on a recurring basis: 2016 ( Dollars in thousands) Corporate Beginning Balance December 31, 2015 $ 417 Total gains or losses (realized/unrealized) Included in earnings — Included in other comprehensive income — Purchases, sales, issuances, and settlements (net) 583 Transfers in and/or out of Level 3 — Ending Balance December 31, 2016 $ 1,000 2015 ( Dollars in thousands) Corporate Beginning Balance December 31, 2014 $ 417 Total gains or losses (realized/unrealized) Included in earnings — Included in other comprehensive income — Purchases, issuances, and settlements — Transfers in and/or out of Level 3 — Ending Balance December 31, 2015 $ 417 |
Schedule of the fair value for each category of assets carried at fair value that are measured on a non-recurring basis | The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of December 31, 2016 and December 31, 2015 that are measured on a non-recurring basis. There were no liabilities carried at fair value and measured on a non-recurring basis at December 31, 2016 and 2015. (Dollars in thousands) Description December 31, Quoted Prices Significant Significant Impaired loans: Commercial & Industrial $ — $ — $ — $ — Real estate: Mortgage-residential 637 — — 637 Mortgage-commercial 5,120 — — 5,120 Consumer: Home equity 56 — — 56 Other — — — — Total impaired 5,813 — — 5,813 Other real estate owned: Construction 141 — — 141 Mortgage-residential 269 — — 269 Mortgage-commercial 736 — — 736 Total other real estate owned 1,146 — — 1,146 Total $ 6,959 $ — $ — $ 6,959 (Dollars in thousands) Description December 31, Quoted Prices Significant Significant Impaired loans: Commercial & Industrial $ 9 $ — $ — $ 9 Real estate: Mortgage-residential 845 — — 845 Mortgage-commercial 5,620 — — 5,620 Consumer: Home equity — — — — Other — — — — Total impaired 6,474 — — 6,474 Other real estate owned: Construction 276 — — 276 Mortgage-residential 191 — — 191 Mortgage-commercial 1,991 — — 1,991 Total other real estate owned 2,458 — — 2,458 Total $ 8,932 $ — $ — $ 8,932 |
Schedule of significant unobservable inputs used in the fair value measurements | (Dollars in thousands) Fair Value as Valuation Technique Significant Significant Corporate and Other Securities $ 1,000 Estimation based on comparable non-listed securities Comparable transactions n/a OREO $ 1,146 Appraisal Value/Comparison Sales/Other estimates Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost Impaired loans $ 5,813 Appraisal Value Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost (Dollars in thousands) Fair Value as Valuation Technique Significant Significant Corporate and Other Securities $ 417 Estimation based on comparable non-listed securities Comparable transactions n/a OREO $ 2,458 Appraisal Value/Comparison Sales/Other estimates Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost Impaired loans $ 6,474 Appraisal Value Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following: December 31, (Dollars in thousands) 2016 2015 Land $ 8,629 $ 8,629 Premises 24,722 24,270 Equipment 3,819 4,371 Fixed assets in progress 14 115 37,184 37,385 Accumulated depreciation 7,351 7,456 $ 29,833 $ 29,929 |
GOODWILL, CORE DEPOSIT INTANG37
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets (excluding goodwill) | Intangible assets (excluding goodwill) consisted of the following: December 31, (Dollars in thousands) 2016 2015 Core deposit premiums, gross carrying amount $ 1,548 $ 1,548 Other intangibles 538 538 2,086 2,086 Accumulated amortization (984 ) (667 ) Net $ 1,102 $ 1,419 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Real Estate [Abstract] | |
Summary of activity in the other real estate owned | The following summarizes the activity in the other real estate owned for the years ended December 31, 2016 and 2015. December 31, (In thousands) 2016 2015 Balance—beginning of year $ 2,458 $ 2,943 Additions—foreclosures 579 240 Writedowns 76 219 Sales 1,815 506 Balance, end of year $ 1,146 $ 2,458 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of Total Deposit Liabilities | The Company’s total deposits are comprised of the following at the dates indicated: December 31, December 31, (Dollars in thousands) 2016 2015 Non-interest bearing demand deposits $ 182,915 $ 156,247 NOW and money market accounts 327,459 318,308 Savings 75,012 60,699 Time deposits 181,236 180,897 Total deposits $ 766,622 $ 716,151 |
Schedule of maturities of certificates of deposits | At December 31, 2016, the scheduled maturities of time deposits are as follows: (Dollars in thousands) 2017 $ 96,576 2018 39,620 2019 21,931 2020 10,195 2021 12,912 Thereafter 2 181,236 |
ADVANCES FROM FEDERAL HOME LO40
ADVANCES FROM FEDERAL HOME LOAN BANK (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Advances from Federal Home Loan Banks [Abstract] | |
Schedule of advances from the FHLB | Advances from the FHLB at December 31, 2016 and 2015, consisted of the following: December 31, (In thousands) 2016 2015 Maturing Amount Rate Amount Rate 2017 11,000 0.65 % 15,250 3.98 % 2018 9,250 4.44 % 2019 3,813 2.94 % 2020 4,519 3.26 % 288 1.00 % 2021 4,703 3.09 % $ 24,035 1.98 % $ 24,788 4.12 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense (benefit) | Income tax expense for the years ended December 31, 2016, 2015 and 2014 consists of the following: Year ended December 31 (Dollars in thousands) 2016 2015 2014 Current Federal $ 2,491 $ 2,116 $ 1,232 State 136 387 248 2,627 2,503 1,480 Deferred Federal (460 ) (227 ) 502 State — — — (460 ) (227 ) 502 Income tax expense $ 2,167 $ 2,276 $ 1,982 |
Schedule of reconciliation from expected federal tax expense to effective income tax expense (benefit) | Reconciliation from expected federal tax expense to effective income tax expense (benefit) for the periods indicated are as follows: Year ended December 31 (Dollars in thousands) 2016 2015 2014 Expected federal income tax expense $ 3,009 $ 2,857 $ 2,415 State income tax net of federal benefit 90 255 164 Tax exempt interest (608 ) (531 ) (392 ) Increase in cash surrender value life insurance (206 ) (139 ) (140 ) Valuation allowance released 2 35 55 Merger expenses — — 70 Low income housing tax credits (186 ) (186 ) (186 ) Other 66 (15 ) (4 ) $ 2,167 $ 2,276 $ 1,982 |
Schedule of summary of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax 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 deferred tax liabilities: December 31, (Dollars in thousands) 2016 2015 Assets: Allowance for loan losses $ 1,798 $ 1,584 Excess tax basis of deductible intangible assets 293 315 Excess tax basis of assets acquired 215 537 Net operating loss carry forward 424 388 Unrealized loss on available-for-sale securities 642 — Compensation expense deferred for tax purposes 1,286 1,133 Deferred loss on other-than-temporary-impairment charges 8 8 Tax credit carry-forwards 17 699 Other 675 754 Total deferred tax asset 5,358 5,418 Valuation reserve 489 487 Total deferred tax asset net of valuation reserve 4,869 4,931 Liabilities: Tax depreciation in excess of book depreciation 357 411 Excess financial reporting basis of assets acquired 1,310 1,368 Unrealized gain on available-for-sale securities — 410 Total deferred tax liabilities 1,667 2,189 Net deferred tax asset recognized $ 3,202 $ 2,742 |
OTHER EXPENSES (Tables)
OTHER EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of components of other non-interest expense | The following is a summary of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities: December 31, (Dollars in thousands) 2016 2015 Assets: Allowance for loan losses $ 1,798 $ 1,584 Excess tax basis of deductible intangible assets 293 315 Excess tax basis of assets acquired 221 537 Net operating loss carry forward 419 388 Compensation expense deferred for tax purposes 1,286 1,133 Deferred loss on other-than-temporary-impairment charges 8 8 Interest on nonaccrual loans — — Tax credit carry-forwards (113 ) 699 Other 733 754 Total deferred tax asset 4,645 5,418 Valuation reserve 517 487 Total deferred tax asset net of valuation reserve 4,128 4,931 Liabilities: Tax depreciation in excess of book depreciation 307 411 Excess financial reporting basis of assets acquired 1,310 1,368 Unrealized gain on available-for-sale securities 422 410 Other — — Total deferred tax liabilities 2,039 2,189 Net deferred tax asset recognized $ 2,089 $ 2,742 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerator and denominator of the basic and diluted earnings per common share computation | The following is a summary of the tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities: December 31, (Dollars in thousands) 2016 2015 Assets: Allowance for loan losses $ 1,798 $ 1,584 Excess tax basis of deductible intangible assets 293 315 Excess tax basis of assets acquired 221 537 Net operating loss carry forward 419 388 Compensation expense deferred for tax purposes 1,286 1,133 Deferred loss on other-than-temporary-impairment charges 8 8 Interest on nonaccrual loans — — Tax credit carry-forwards (113 ) 699 Other 733 754 Total deferred tax asset 4,645 5,418 Valuation reserve 517 487 Total deferred tax asset net of valuation reserve 4,128 4,931 Liabilities: Tax depreciation in excess of book depreciation 307 411 Excess financial reporting basis of assets acquired 1,310 1,368 Unrealized gain on available-for-sale securities 422 410 Other — — Total deferred tax liabilities 2,039 2,189 Net deferred tax asset recognized $ 2,089 $ 2,742 |
SHAREHOLDERS' EQUITY, CAPITAL44
SHAREHOLDERS' EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of actual capital amounts and ratios as well as minimum amounts for each regulatory defined category for the bank and the company | The Company and the Bank exceeded the regulatory capital ratios at December 31, 2016 and 2015, as set forth in the following table: (In thousands) Required % Actual % Excess % The Bank: December 31, 2016 Risk Based Capital Tier 1 $ 38,011 6.0 % $ 87,657 13.8 % $ 49,646 7.8 % Total Capital 50,681 8.0 % 92,871 14.7 % 42,190 6.7 % CET1 28,508 4.5 % 87,657 13.8 % 59,149 9.3 % Tier 1 Leverage 35,875 4.0 % 87,657 9.8 % 51,782 5.8 % December 31, 2015 Risk Based Capital Tier 1 $ 33,640 6.0 % $ 82,512 14.7 % $ 48,872 8.7 % Total Capital 44,855 8.0 % 87,108 15.5 % 42,253 7.5 % CET1 25,230 4.5 % 82,512 14.7 % 57,282 10.2 % Tier 1 Leverage 33,923 4.0 % 82,512 9.7 % 48,589 5.7 % The Company: December 31, 2016 Risk Based Capital Tier 1 $ 38,126 6.0 % $ 91,966 14.5 % $ 53,840 8.5 % Total Capital 50,835 8.0 % 97,180 15.3 % 46,345 7.3 % CET1 28,595 4.5 % 77,466 12.2 % 48,871 7.7 % Tier 1 Leverage 35,957 4.0 % $ 91,966 10.2 % 56,009 6.2 % December 31, 2015 Risk Based Capital Tier 1 $ 33,782 6.0 % $ 86,682 15.4 % $ 52,900 9.4 % Total Capital 45,043 8.0 % 91,278 16.2 % 46,235 8.2 % CET1 25,336 4.5 % 72,444 12.9 % 47,108 8.4 % Tier 1 Leverage 34,021 4.0 % 86,682 10.2 % 52,661 6.2 % |
PARENT COMPANY FINANCIAL INFO45
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of balance sheets for First Community Corporation (Parent Only) | Condensed Balance Sheets At December 31, (Dollars in thousands) 2016 2015 Assets: Cash on deposit $ 2,732 $ 2,088 Securities purchased under agreement to resell 128 128 Investment securities available-for-sale — 417 Land held for sale 1,055 1,080 Investment in bank subsidiary 92,053 89,368 Other 1,005 1,045 Total assets $ 96,973 $ 94,126 Liabilities: Junior subordinated debentures $ 14,964 $ 14,964 Other 148 124 Total liabilities 15,112 15,088 Shareholders’ equity 81,861 79,038 Total liabilities and shareholders’ equity $ 96,973 $ 94,126 |
Schedule of statements of operations for First Community Corporation (Parent Only) | Condensed Statements of Operations Year ended December 31, (Dollars in thousands) 2016 2015 2014 Income: Interest and dividend income $ 126 $ 58 $ 40 Gain on early extinguishment of debtnote — 130 — Equity in undistributed earnings of subsidiary 4,752 4,690 4,510 Dividend income from bank subsidiary 2,606 2,181 1,369 Total income 7,484 7,059 5,919 Expenses: Interest expense 493 446 427 Other 570 792 708 Total expense 1,063 1,238 1,135 Income before taxes 6,421 5,821 4,784 Income tax benefit (261 ) (306 ) (337 ) Net income $ 6,682 $ 6,127 $ 5,121 |
Schedule of cash flows for First Community Corporation (Parent Only) | Condensed Statements of Cash Flows Year ended December 31, (Dollars in thousands) 2016 2015 2014 Cash flows from operating activities: Net income $ 6,682 $ 6,127 $ 5,121 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed earnings of subsidiary (4,752 ) (4,690 ) (4,510 ) Gain on early extinguishment of debt — 130 — Other-net 463 63 647 Net cash provided by operating activities 2,393 1,630 1,258 Cash flows from investing activities: Proceeds from sale of securities available-for-sale 417 — — Net cash provided by investing activities 417 — — Cash flows from financing activities: Dividends paid: Common stock (2,117 ) (1,833 ) (1,484 ) Proceeds from issuance of common stock 304 229 173 Restricted shares surrendered (353 ) (98 ) — Repayment of long term debt — (370 ) — Net cash used in financing activities (2,166 ) (2,072 ) (1,311 ) Increase (decrease) in cash and cash equivalents 644 (442 ) (53 ) Cash and cash equivalents, beginning of year 2,088 2,530 2,583 Cash and cash equivalents, end of year $ 2,732 $ 2,088 $ 2,530 |
QUARTERLY FINANCIAL DATA (UNA46
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial data | The following provides quarterly financial data for 2016 and 2015 (dollars in thousands, except per share amounts). 2016 Fourth Third Second First Interest income $ 7,510 $ 7,400 $ 7,459 $ 7,137 Net interest income 6,794 6,651 6,677 6,337 Provision for loan losses 238 179 217 140 Gain on sale of securities — 478 64 59 Income before income taxes 2,238 2,276 2,391 1,944 Net income 1,792 1,677 1,745 1,468 Net income available to common shareholders 1,792 1,677 1,745 1,468 Net income per share, basic $ 0.27 $ 0.26 $ 0.27 $ 0.22 Net income per share, diluted $ 0.26 $ 0.25 $ 0.26 $ 0.22 2015 Fourth Third Second First Interest income $ 7,203 $ 7,114 $ 7,049 $ 7,283 Net interest income 6,348 6,253 6,204 6,448 Provision for loan losses 148 193 391 406 Gain on sale of securities 84 — 167 104 Income before income taxes 2,169 2,322 1,989 1,923 Net income 1,601 1,679 1,443 1,404 Net income available to common shareholders 1,601 1,679 1,443 1,404 Net income per share, basic $ 0.24 $ 0.26 $ 0.22 $ 0.22 Net income per share, diluted $ 0.24 $ 0.25 $ 0.22 $ 0.21 2014 Fourth Third Second First Interest income $ 7,078 $ 6,968 $ 6,849 $ 6,403 Net interest income 6,192 6,096 5,947 5,496 Provision for loan losses 179 152 400 150 Gain on sale of securities 80 16 78 8 Income before income taxes 2,063 2,184 1,661 1,195 Net income 1,506 1,552 1,201 862 Net income available to common shareholders 1,506 1,552 1,201 862 Net income per share, basic $ 0.23 $ 0.23 $ 0.18 $ 0.14 Net income per share, diluted $ 0.22 $ 0.23 $ 0.18 $ 0.14 |
SUMMARY OF SIGNIFICANT ACCOUN47
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents | |
Period for which federal funds are generally sold | 1 day |
Mortgage Loans Held for Sale | |
Period within which the entity delivers to and receives funding from the investor | 30 days |
Loans and Allowance for Loan Losses | |
Threshold period past due for discontinuation of accrual of interest on impaired loans | 90 days |
Building [Member] | Maximum [Member] | |
Loans and Allowance for Loan Losses | |
Estimated useful lives | 39 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Loans and Allowance for Loan Losses | |
Estimated useful lives | 10 years |
SUMMARY OF SIGNIFICANT ACCOUN48
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative 2) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)N | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Information | |||
Number of operating segments | 4 | ||
Risk and Uncertainties | |||
Number of significant types of risks | 2 | ||
Number of main components of economic risk | 3 | ||
Advertising Expense | $ | $ 820 | $ 806 | $ 609 |
Core Deposits [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Period over which intangibles are being amortized | 7 years |
MERGERS AND ACQUISTIONS (Detail
MERGERS AND ACQUISTIONS (Details) $ / shares in Units, $ in Thousands | Feb. 01, 2016USD ($)$ / sharesshares |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis Asset Realized and Unrealized Gains (Losses) [Abstract] | |
Fair value of total consideration transferred | $ 33,515 |
Cash exchanged for stock and fractional shares | $ 19,805 |
First Community Corporation common shares issued | shares | 1,274,200 |
Equity Interests Issued or Issuable | $ 13,710 |
Purchase price per share of the Company's common stock | $ / shares | $ 10.76 |
MERGERS AND ACQUISTIONS (Deta50
MERGERS AND ACQUISTIONS (Details Narrative) - First South Bank [Member] - USD ($) $ in Thousands | Sep. 26, 2016 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||
Deposits | $ 40,000 | |
Loans | 8,700 | |
Premium paid | $ 714 | |
Core Deposits [Member] | ||
Business Acquisition [Line Items] | ||
Acquired finite lived intangible assets | $ 366 | |
Other Intangible Assets [Member] | ||
Business Acquisition [Line Items] | ||
Acquired finite lived intangible assets | $ 539 |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 255,387 | $ 263,549 |
Gross Unrealized Gains | 1,633 | 2,932 |
Gross Unrealized Losses | 3,626 | 1,794 |
Fair Value | 253,394 | 264,687 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,538 | 1,547 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 18 | 25 |
Fair Value | 1,520 | 1,522 |
Government sponsored enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 959 | 950 |
Gross Unrealized Gains | 38 | 42 |
Gross Unrealized Losses | ||
Fair Value | 997 | 992 |
Government Sponsored Enterprise mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 145,696 | 146,935 |
Gross Unrealized Gains | 480 | 498 |
Gross Unrealized Losses | 1,878 | 1,172 |
Fair Value | 144,298 | 146,261 |
Small Business Administration pools [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 50,560 | 57,474 |
Gross Unrealized Gains | 208 | 355 |
Gross Unrealized Losses | 584 | 501 |
Fair Value | 50,184 | 57,328 |
State and local government [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 54,702 | 55,294 |
Gross Unrealized Gains | 907 | 2,037 |
Gross Unrealized Losses | 1,075 | 36 |
Fair Value | 54,534 | 57,295 |
Corporate and other securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,932 | 1,349 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | 71 | 60 |
Fair Value | 1,861 | 1,289 |
Non-agency mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 427 | 555 |
Fair Value | $ 437 | $ 556 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized Cost | $ 17,193 | $ 17,371 |
Gross Unrealized Gains | 54 | 211 |
Gross Unrealized Losses | 133 | 27 |
Fair Value | 17,114 | 17,555 |
State and local government [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized Cost | 17,193 | 17,371 |
Gross Unrealized Gains | 54 | 211 |
Gross Unrealized Losses | 133 | 27 |
Fair Value | $ 17,114 | $ 17,555 |
INVESTMENT SECURITIES (Detail53
INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 6,013 | |
Due after one year through five years | 122,954 | |
Due after five years through ten years | 72,521 | |
Due after ten years | 53,899 | |
Total | 255,387 | |
Available-for-sale, Fair Value | ||
Due in one year or less | 5,966 | |
Due after one year through five years | 122,490 | |
Due after five years through ten years | 71,307 | |
Due after ten years | 53,631 | |
Total | 253,394 | |
Held To Maturity Securities, Amortized Cost | ||
Due in one year or less | ||
Due after one year through five years | 611 | |
Due after five years through ten years | 8,229 | |
Due after ten years | 8,353 | |
Total | 17,193 | $ 17,371 |
Held To Maturity Securities, Fair value | ||
Due in one year or less | ||
Due after one year through five years | 606 | |
Due after five years through ten years | 8,171 | |
Due after ten years | 8,337 | |
Total | $ 17,114 | $ 17,555 |
INVESTMENT SECURITIES (Detail54
INVESTMENT SECURITIES (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | $ 111,624 | $ 85,481 |
Less Than 12 Months, Unrealized Losses | 2,896 | 917 |
12 Months Or Longer, Fair Value | 40,838 | 45,662 |
12 Months Or Longer, Unrealized Losses | 730 | 877 |
Total Fair Value | 152,462 | 131,143 |
Total Unrealized Losses | 3,626 | 1,794 |
Held-to-maturity debt securities | ||
Less Than 12 Months, Fair Value | 10,245 | 3,473 |
Less Than 12 Months, Unrealized Losses | 133 | 24 |
12 Months Or Longer, Fair Value | 444 | |
12 Months Or Longer, Unrealized Losses | 3 | |
Total Fair Value | 10,245 | 3,917 |
Total Unrealized Losses | 133 | 27 |
US Treasury Securities [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | 1,520 | 1,522 |
Less Than 12 Months, Unrealized Losses | 18 | 25 |
12 Months Or Longer, Fair Value | ||
12 Months Or Longer, Unrealized Losses | ||
Total Fair Value | 1,520 | 1,522 |
Total Unrealized Losses | 18 | 25 |
Government Sponsored Enterprise mortgage-backed securities [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | 77,389 | 69,112 |
Less Than 12 Months, Unrealized Losses | 1,597 | 731 |
12 Months Or Longer, Fair Value | 16,655 | 17,593 |
12 Months Or Longer, Unrealized Losses | 281 | 439 |
Total Fair Value | 94,044 | 86,705 |
Total Unrealized Losses | 1,878 | 1,170 |
Small Business Administration pools [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | 15,213 | 13,386 |
Less Than 12 Months, Unrealized Losses | 206 | 153 |
12 Months Or Longer, Fair Value | 23,382 | 25,709 |
12 Months Or Longer, Unrealized Losses | 378 | 348 |
Total Fair Value | 38,595 | 39,095 |
Total Unrealized Losses | 584 | 501 |
State and local government [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | 17,502 | 1,461 |
Less Than 12 Months, Unrealized Losses | 1,075 | 8 |
12 Months Or Longer, Fair Value | 1,362 | |
12 Months Or Longer, Unrealized Losses | 28 | |
Total Fair Value | 17,502 | 2,823 |
Total Unrealized Losses | 1,075 | 36 |
Held-to-maturity debt securities | ||
Less Than 12 Months, Fair Value | 10,245 | 3,473 |
Less Than 12 Months, Unrealized Losses | 133 | 24 |
12 Months Or Longer, Fair Value | 444 | |
12 Months Or Longer, Unrealized Losses | 3 | |
Total Fair Value | 10,245 | 3,917 |
Total Unrealized Losses | 133 | 27 |
Corporate and other securities [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | ||
Less Than 12 Months, Unrealized Losses | ||
12 Months Or Longer, Fair Value | 801 | 812 |
12 Months Or Longer, Unrealized Losses | 71 | 60 |
Total Fair Value | 801 | 812 |
Total Unrealized Losses | $ 71 | 60 |
Non-agency mortgage-backed securities [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | ||
Less Than 12 Months, Unrealized Losses | ||
12 Months Or Longer, Fair Value | 186 | |
12 Months Or Longer, Unrealized Losses | 2 | |
Total Fair Value | 186 | |
Total Unrealized Losses | $ 2 |
INVESTMENT SECURITIES (Detail55
INVESTMENT SECURITIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Amortized Cost | $ 255,387 | ||
Fair Value | 253,394 | ||
Impairment charges recognized in earnings, credit component | 180 | ||
Estimated credit losses | 415 | ||
Proceeds from sale of investment securities available-for-sale | 33,215 | $ 26,099 | $ 49,007 |
Gross realized gains | 601 | 380 | 308 |
Gross realized losses | 0 | 25 | 126 |
Tax provision applicable to net realized gain | 204 | 121 | $ 62 |
Mutual Funds [Member] | |||
Fair Value | 801 | 812 | |
Foreign Corporate Debt Securities [Member] | |||
Fair Value | 60 | 60 | |
Corporate Preferred Stock [Member] | |||
Fair Value | 1,000 | 417 | |
Federal Home Loan Mortgage Corporation Preferred Stock [Member] | |||
Securities pledged amortized cost | 102,800 | 98,300 | |
Securities pledged fair value | $ 107,600 | $ 98,100 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 546,709 | $ 489,191 | $ 443,844 |
Commercial Financial and Agricultural Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 42,704 | 37,809 | |
Real Estate Construction Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 45,746 | 35,829 | 27,545 |
Real estate Mortgage-residential [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 47,472 | 49,077 | 48,510 |
Real estate Mortgage-commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 371,112 | 326,978 | 293,186 |
Consumer Home Equity Line of Credit [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 31,368 | 30,906 | 33,000 |
Consumer Other Financing Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 8,307 | $ 8,592 | $ 8,200 |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | $ 4,596 | $ 4,132 | $ 4,219 | $ 4,596 | $ 4,132 | $ 4,219 | |||||||||
Provision for loan losses | $ 238 | $ 179 | $ 217 | $ 140 | $ 148 | $ 193 | $ 391 | $ 406 | $ 179 | $ 152 | $ 400 | $ 150 | 774 | 1,138 | 880 |
Charged off loans | (239) | (807) | (1,111) | ||||||||||||
Recoveries | 83 | 133 | 143 | ||||||||||||
Balance at end of the period | $ 5,214 | $ 4,596 | $ 4,132 | $ 5,214 | $ 4,596 | $ 4,132 |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | $ 4,596 | $ 4,132 | $ 4,219 | $ 4,596 | $ 4,132 | $ 4,219 | |||||||||
Charge-offs | (239) | (807) | (1,111) | ||||||||||||
Recoveries | 83 | 133 | 143 | ||||||||||||
Provisions | $ 238 | $ 179 | $ 217 | 140 | $ 148 | $ 193 | $ 391 | 406 | $ 179 | $ 152 | $ 400 | 150 | 774 | 1,138 | 880 |
Balance at end of the period | 5,214 | 4,596 | 4,132 | 5,214 | 4,596 | 4,132 | |||||||||
Allowance for loan losses | |||||||||||||||
Individually evaluated for impairment | 6 | 3 | 61 | 6 | 3 | 61 | |||||||||
Collectively evaluated for impairment | 5,208 | 4,593 | 4,071 | 5,208 | 4,593 | 4,071 | |||||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 546,709 | 489,191 | 443,844 | 546,709 | 489,191 | 443,844 | |||||||||
Individually evaluated for impairment | 5,819 | 6,477 | 8,559 | 5,819 | 6,477 | 8,559 | |||||||||
Collectively evaluated for impairment | 540,890 | 482,714 | 435,285 | 540,890 | 482,714 | 435,285 | |||||||||
Commercial Loan [Member] | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | 75 | 67 | 233 | 75 | 67 | 233 | |||||||||
Charge-offs | (69) | (54) | |||||||||||||
Recoveries | 5 | 6 | 110 | ||||||||||||
Provisions | 65 | 71 | (222) | ||||||||||||
Balance at end of the period | 145 | 75 | 67 | 145 | 75 | 67 | |||||||||
Allowance for loan losses | |||||||||||||||
Individually evaluated for impairment | |||||||||||||||
Collectively evaluated for impairment | 145 | 75 | 67 | 145 | 75 | 67 | |||||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 42,704 | 37,809 | 33,403 | 42,704 | 37,809 | 33,403 | |||||||||
Individually evaluated for impairment | 9 | 55 | 9 | 55 | |||||||||||
Collectively evaluated for impairment | 42,704 | 37,800 | 33,348 | 42,704 | 37,800 | 33,348 | |||||||||
Real Estate Construction Loans [Member] | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | 51 | 45 | 26 | 51 | 45 | 26 | |||||||||
Charge-offs | |||||||||||||||
Recoveries | |||||||||||||||
Provisions | 53 | 6 | 19 | ||||||||||||
Balance at end of the period | 104 | 51 | 45 | 104 | 51 | 45 | |||||||||
Allowance for loan losses | |||||||||||||||
Individually evaluated for impairment | |||||||||||||||
Collectively evaluated for impairment | 104 | 51 | 45 | 104 | 51 | 45 | |||||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 45,746 | 35,829 | 27,545 | 45,746 | 35,829 | 27,545 | |||||||||
Individually evaluated for impairment | |||||||||||||||
Collectively evaluated for impairment | 45,746 | 35,829 | 27,545 | 45,746 | 35,829 | 27,545 | |||||||||
Real estate Mortgage-residential [Member] | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | 223 | 179 | 291 | 223 | 179 | 291 | |||||||||
Charge-offs | (11) | (50) | (52) | ||||||||||||
Recoveries | 40 | 7 | 10 | ||||||||||||
Provisions | 186 | 87 | (70) | ||||||||||||
Balance at end of the period | 438 | 223 | 179 | 438 | 223 | 179 | |||||||||
Allowance for loan losses | |||||||||||||||
Individually evaluated for impairment | 2 | 3 | 4 | 2 | 3 | 4 | |||||||||
Collectively evaluated for impairment | 436 | 220 | 175 | 436 | 220 | 175 | |||||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 47,472 | 49,077 | 48,510 | 47,472 | 49,077 | 48,510 | |||||||||
Individually evaluated for impairment | 639 | 848 | 1,078 | 639 | 848 | 1,078 | |||||||||
Collectively evaluated for impairment | 46,833 | 48,229 | 47,432 | 46,833 | 48,229 | 47,432 | |||||||||
Real estate Mortgage-commercial [Member] | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | 2,036 | 1,572 | 1,117 | 2,036 | 1,572 | 1,117 | |||||||||
Charge-offs | (136) | (626) | (879) | ||||||||||||
Recoveries | 21 | 33 | |||||||||||||
Provisions | 872 | 1,057 | 1,334 | ||||||||||||
Balance at end of the period | 2,793 | 2,036 | 1,572 | 2,793 | 2,036 | 1,572 | |||||||||
Allowance for loan losses | |||||||||||||||
Individually evaluated for impairment | 4 | 57 | 4 | 57 | |||||||||||
Collectively evaluated for impairment | 2,789 | 2,036 | 1,515 | 2,789 | 2,036 | 1,515 | |||||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 371,112 | 326,978 | 293,186 | 371,112 | 326,978 | 293,186 | |||||||||
Individually evaluated for impairment | 5,124 | 5,620 | 7,334 | 5,124 | 5,620 | 7,334 | |||||||||
Collectively evaluated for impairment | 365,988 | 321,358 | 285,852 | 365,988 | 321,358 | 285,852 | |||||||||
Consumer Home Equity Line of Credit [Member] | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | 127 | 134 | 112 | 127 | 134 | 112 | |||||||||
Charge-offs | (20) | (62) | (17) | ||||||||||||
Recoveries | 3 | 84 | 6 | ||||||||||||
Provisions | 43 | (29) | 33 | ||||||||||||
Balance at end of the period | 153 | 127 | 134 | 153 | 127 | 134 | |||||||||
Allowance for loan losses | |||||||||||||||
Individually evaluated for impairment | |||||||||||||||
Collectively evaluated for impairment | 153 | 127 | 134 | 153 | 127 | 134 | |||||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 31,368 | 30,906 | 33,000 | 31,368 | 30,906 | 33,000 | |||||||||
Individually evaluated for impairment | 56 | 92 | 56 | 92 | |||||||||||
Collectively evaluated for impairment | 31,312 | 30,906 | 32,908 | 31,312 | 30,906 | 32,908 | |||||||||
Consumer Other Financing Receivable [Member] | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | 37 | 44 | 80 | 37 | 44 | 80 | |||||||||
Charge-offs | (72) | (109) | |||||||||||||
Recoveries | 14 | 3 | 17 | ||||||||||||
Provisions | 148 | (10) | 56 | ||||||||||||
Balance at end of the period | 127 | 37 | 44 | 127 | 37 | 44 | |||||||||
Allowance for loan losses | |||||||||||||||
Individually evaluated for impairment | |||||||||||||||
Collectively evaluated for impairment | 127 | 37 | 44 | 127 | 37 | 44 | |||||||||
Loans receivable: | |||||||||||||||
Ending balance-total | 8,307 | 8,592 | 8,200 | 8,307 | 8,592 | 8,200 | |||||||||
Individually evaluated for impairment | |||||||||||||||
Collectively evaluated for impairment | 8,307 | 8,592 | 8,200 | 8,307 | 8,592 | 8,200 | |||||||||
Unallocated Financing Receivables [Member] | |||||||||||||||
Activity in the allowance for loan losses | |||||||||||||||
Balance at the beginning of the period | $ 2,047 | $ 2,091 | $ 2,360 | 2,047 | 2,091 | 2,360 | |||||||||
Charge-offs | |||||||||||||||
Recoveries | |||||||||||||||
Provisions | (593) | (44) | (269) | ||||||||||||
Balance at end of the period | 1,454 | 2,047 | 2,091 | 1,454 | 2,047 | 2,091 | |||||||||
Allowance for loan losses | |||||||||||||||
Individually evaluated for impairment | |||||||||||||||
Collectively evaluated for impairment | 1,454 | 2,047 | 2,091 | 1,454 | 2,047 | 2,091 | |||||||||
Loans receivable: | |||||||||||||||
Ending balance-total | |||||||||||||||
Individually evaluated for impairment | |||||||||||||||
Collectively evaluated for impairment |
LOANS (Details 4)
LOANS (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loans Details 4 | |||
Total loans considered impaired at year end | $ 5,819 | $ 6,477 | $ 8,559 |
Loans considered impaired for which there is a related allowance for loan loss: | |||
Outstanding loan balance | 224 | 49 | 1,959 |
Related allowance | 6 | 3 | 61 |
Loans considered impaired and previously written down to fair value | 5,595 | 6,428 | 6,600 |
Average impaired loans | 8,727 | 9,518 | 10,900 |
Amount of interest earned during period of impairment | 112 | 64 | 163 |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Balance, beginning of year | 7,037 | 3,969 | |
New Loans | 481 | 4,332 | |
Less loan repayments | 1,415 | 1,264 | |
Balance, end of year | $ 6,103 | $ 7,037 | $ 3,969 |
LOANS (Details 5)
LOANS (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
With no allowance recorded: | |||
Recorded Investment | $ 5,595 | $ 6,428 | $ 6,600 |
With an allowance recorded: | |||
Recorded Investment | 224 | 49 | 1,959 |
Related allowance | 6 | 3 | 61 |
Total: | |||
Recorded Investment | 5,819 | 6,477 | 8,559 |
Unpaid Principal Balance | 7,704 | 8,480 | 10,032 |
Average Recorded Investment | 8,727 | 9,518 | 10,900 |
Interest Income Recognized | 112 | 64 | 163 |
Commercial Loan [Member] | |||
With no allowance recorded: | |||
Recorded Investment | 9 | 55 | |
Unpaid Principal Balance | 9 | 112 | |
Average Recorded Investment | 13 | 132 | |
Interest Income Recognized | 3 | ||
With an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total: | |||
Recorded Investment | 9 | 55 | |
Unpaid Principal Balance | 9 | 112 | |
Average Recorded Investment | 13 | 132 | |
Interest Income Recognized | 3 | ||
Real Estate Construction Loans [Member] | |||
With no allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
With an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Real estate Mortgage-residential [Member] | |||
With no allowance recorded: | |||
Recorded Investment | 593 | 799 | 1,025 |
Unpaid Principal Balance | 603 | 874 | 1,167 |
Average Recorded Investment | 660 | 1,082 | 1,071 |
Interest Income Recognized | 1 | 8 | |
With an allowance recorded: | |||
Recorded Investment | 46 | 49 | 53 |
Unpaid Principal Balance | 46 | 49 | 53 |
Related allowance | 2 | 3 | 4 |
Average Recorded Investment | 48 | 51 | 54 |
Interest Income Recognized | 2 | 3 | 3 |
Total: | |||
Recorded Investment | 639 | 848 | 1,078 |
Unpaid Principal Balance | 649 | 923 | 1,220 |
Average Recorded Investment | 708 | 1,133 | 1,125 |
Interest Income Recognized | 2 | 4 | 11 |
Real estate Mortgage-commercial [Member] | |||
With no allowance recorded: | |||
Recorded Investment | 4,946 | 5,620 | 5,428 |
Unpaid Principal Balance | 6,821 | 7,548 | 6,469 |
Average Recorded Investment | 7,777 | 8,372 | 7,634 |
Interest Income Recognized | 98 | 60 | 64 |
With an allowance recorded: | |||
Recorded Investment | 178 | 1,906 | |
Unpaid Principal Balance | 178 | 2,134 | |
Related allowance | 4 | 57 | |
Average Recorded Investment | 186 | 1,926 | |
Interest Income Recognized | 12 | 85 | |
Total: | |||
Recorded Investment | 5,124 | 5,620 | 7,334 |
Unpaid Principal Balance | 6,999 | 7,548 | 8,603 |
Average Recorded Investment | 7,963 | 8,372 | 9,560 |
Interest Income Recognized | 110 | 60 | 149 |
Consumer Home Equity Line of Credit [Member] | |||
With no allowance recorded: | |||
Recorded Investment | 56 | 92 | |
Unpaid Principal Balance | 56 | 97 | |
Average Recorded Investment | 56 | 83 | |
Interest Income Recognized | |||
With an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total: | |||
Recorded Investment | 56 | 92 | |
Unpaid Principal Balance | 56 | 97 | |
Average Recorded Investment | 56 | 83 | |
Interest Income Recognized | |||
Consumer Other Financing Receivable [Member] | |||
With no allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
With an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Average Recorded Investment | |||
Interest Income Recognized |
LOANS (Details 6)
LOANS (Details 6) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loans | $ 546,709 | $ 489,191 | $ 443,844 |
Commercial Financial and Agricultural Loans [Member] | |||
Loans | 42,704 | 37,809 | |
Real Estate Construction Loans [Member] | |||
Loans | 45,746 | 35,829 | 27,545 |
Real estate Mortgage-residential [Member] | |||
Loans | 47,472 | 49,077 | 48,510 |
Real estate Mortgage-commercial [Member] | |||
Loans | 371,112 | 326,978 | 293,186 |
Consumer Home Equity Line of Credit [Member] | |||
Loans | 31,368 | 30,906 | 33,000 |
Consumer Other Financing Receivable [Member] | |||
Loans | 8,307 | 8,592 | $ 8,200 |
Pass [Member] | |||
Loans | 531,980 | 468,996 | |
Pass [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Loans | 42,486 | 37,501 | |
Pass [Member] | Real Estate Construction Loans [Member] | |||
Loans | 45,746 | 35,374 | |
Pass [Member] | Real estate Mortgage-residential [Member] | |||
Loans | 45,751 | 46,580 | |
Pass [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | 8,301 | 8,587 | |
Pass [Member] | Consumer Home Equity Line of Credit [Member] | |||
Loans | 30,929 | 30,587 | |
Pass [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | 358,767 | 310,367 | |
Special Mention [Member] | |||
Loans | 6,799 | 9,868 | |
Special Mention [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Loans | 218 | 299 | |
Special Mention [Member] | Real Estate Construction Loans [Member] | |||
Loans | 455 | ||
Special Mention [Member] | Real estate Mortgage-residential [Member] | |||
Loans | 622 | 1,378 | |
Special Mention [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | 6 | 1 | |
Special Mention [Member] | Consumer Home Equity Line of Credit [Member] | |||
Loans | 180 | 180 | |
Special Mention [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | 5,773 | 7,555 | |
Substandard [Member] | |||
Loans | 7,930 | 10,327 | |
Substandard [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Loans | 9 | ||
Substandard [Member] | Real Estate Construction Loans [Member] | |||
Loans | |||
Substandard [Member] | Real estate Mortgage-residential [Member] | |||
Loans | 1,099 | 1,119 | |
Substandard [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | 4 | ||
Substandard [Member] | Consumer Home Equity Line of Credit [Member] | |||
Loans | 259 | 139 | |
Substandard [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | 6,572 | 9,056 | |
Doubtful [Member] | |||
Loans | |||
Doubtful [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Loans | |||
Doubtful [Member] | Real Estate Construction Loans [Member] | |||
Loans | |||
Doubtful [Member] | Real estate Mortgage-residential [Member] | |||
Loans | |||
Doubtful [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | |||
Doubtful [Member] | Consumer Home Equity Line of Credit [Member] | |||
Loans | |||
Doubtful [Member] | Real estate Mortgage-commercial [Member] | |||
Loans |
LOANS (Details 7)
LOANS (Details 7) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | $ 1,275 | $ 1,450 | |
60-89 Days Past Due | 547 | 489 | |
Greater than 90 Days and Accruing | 53 | 0 | |
Nonaccrual | 4,049 | 4,839 | |
Total Past Due | 5,924 | 6,778 | |
Current | 540,785 | 482,413 | |
Total Loans | 546,709 | 489,191 | $ 443,844 |
Commercial Loan [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 11 | 5 | |
60-89 Days Past Due | |||
Greater than 90 Days and Accruing | |||
Nonaccrual | 9 | ||
Total Past Due | 11 | 14 | |
Current | 42,693 | 37,795 | |
Total Loans | 42,704 | 37,809 | 33,403 |
Real Estate Construction Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | |||
60-89 Days Past Due | |||
Greater than 90 Days and Accruing | |||
Nonaccrual | |||
Total Past Due | |||
Current | 45,746 | 35,829 | |
Total Loans | 45,746 | 35,829 | 27,545 |
Real estate Mortgage-residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 194 | 126 | |
60-89 Days Past Due | 145 | 195 | |
Greater than 90 Days and Accruing | 32 | ||
Nonaccrual | 593 | 799 | |
Total Past Due | 964 | 1,120 | |
Current | 46,508 | 47,957 | |
Total Loans | 47,472 | 49,077 | 48,510 |
Real estate Mortgage-commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 995 | 1,180 | |
60-89 Days Past Due | 337 | 290 | |
Greater than 90 Days and Accruing | |||
Nonaccrual | 3,400 | 4,031 | |
Total Past Due | 4,732 | 5,501 | |
Current | 366,380 | 321,477 | |
Total Loans | 371,112 | 326,978 | 293,186 |
Consumer Home Equity Line of Credit [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 59 | 135 | |
60-89 Days Past Due | 64 | ||
Greater than 90 Days and Accruing | 16 | ||
Nonaccrual | 56 | ||
Total Past Due | 195 | 135 | |
Current | 31,173 | 30,771 | |
Total Loans | 31,368 | 30,906 | 33,000 |
Consumer Other Financing Receivable [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 16 | 4 | |
60-89 Days Past Due | 1 | 4 | |
Greater than 90 Days and Accruing | 5 | ||
Nonaccrual | |||
Total Past Due | 22 | 8 | |
Current | 8,285 | 8,584 | |
Total Loans | $ 8,307 | $ 8,592 | $ 8,200 |
LOANS (Details 8)
LOANS (Details 8) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($)N | |
Troubled Debt Restructurings that subsequently defaulted | |
Number of Contracts | N | 1 |
Recorded Investment | $ 180 |
Real estate Mortgage-Consumer [Member] | |
Troubled Debt Restructurings that subsequently defaulted | |
Number of Contracts | N | 1 |
Recorded Investment | $ 180 |
Nonaccrual Status [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | N | 2 |
Pre-Modification Outstanding Recorded Investment | $ 1,844 |
Post-Modification Outstanding Recorded Investment | $ 1,844 |
Nonaccrual Status [Member] | Real estate Mortgage-commercial [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | N | 1 |
Pre-Modification Outstanding Recorded Investment | $ 1,664 |
Post-Modification Outstanding Recorded Investment | $ 1,664 |
Nonaccrual Status [Member] | Real estate Mortgage-Consumer [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | N | 1 |
Pre-Modification Outstanding Recorded Investment | $ 180 |
Post-Modification Outstanding Recorded Investment | $ 180 |
LOANS (Details 9)
LOANS (Details 9) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loans Details 9 | |||
Accretable yield, beginning of period | $ 92 | $ 75 | |
Additions | 272 | ||
Accretion | (170) | (544) | (197) |
Reclassification of nonaccretable difference due to improvement in expected cash flows | 112 | 561 | |
Other changes, net | |||
Accretable yield, end of period | $ 34 | $ 92 | $ 75 |
LOANS (Details Narrative)
LOANS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | ||
Non-accrual loans | $ 4,049 | $ 4,839 |
Gross interest income which would have been recorded under the original terms of the non-accrual loans | 340 | 278 |
Interest recorded on non-accrual loans | 6 | 1 |
Troubled debt restructurings | 1,800 | 1,600 |
Interest earned on troubled debt restructurings | 112 | 63 |
Loans greater than ninety days delinquent and still accruing interest | $ 53 | $ 0 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Assets: | ||
Held-to-maturity securities | $ 17,114 | $ 17,555 |
Investment securities available-for-sale | 253,394 | 264,687 |
Other investments, at cost | 1,809 | 1,783 |
Financial liabilities: | ||
Non-interest bearing demand | 182,915 | 156,247 |
NOW and money market accounts | 327,459 | 318,308 |
Savings | 75,012 | 60,699 |
Time deposits | 181,236 | 180,897 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets: | ||
Cash and short term investments | 21,999 | 22,941 |
Held-to-maturity securities | ||
Investment securities available-for-sale | 801 | 812 |
Other investments, at cost | ||
Loans held for sale | ||
Net loans receivable | ||
Accrued interest | 2,925 | 2,877 |
Financial liabilities: | ||
Non-interest bearing demand | ||
NOW and money market accounts | ||
Savings | ||
Time deposits | ||
Total deposits | ||
Federal Home Loan Bank Advances | ||
Short term borrowings | ||
Junior subordinated debentures | ||
Accrued interest payable | 602 | 652 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Cash and short term investments | ||
Held-to-maturity securities | 17,114 | 17,555 |
Investment securities available-for-sale | 251,593 | 263,458 |
Other investments, at cost | ||
Loans held for sale | 5,707 | 2,962 |
Net loans receivable | 534,674 | 478,195 |
Accrued interest | ||
Financial liabilities: | ||
Non-interest bearing demand | 182,915 | 156,247 |
NOW and money market accounts | 327,459 | 318,308 |
Savings | 75,012 | 60,699 |
Time deposits | 181,638 | 181,325 |
Total deposits | 767,024 | 716,579 |
Federal Home Loan Bank Advances | 24,518 | 25,841 |
Short term borrowings | 19,527 | 21,033 |
Junior subordinated debentures | 15,258 | 14,954 |
Accrued interest payable | ||
Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets: | ||
Cash and short term investments | ||
Held-to-maturity securities | ||
Investment securities available-for-sale | 1,000 | 417 |
Other investments, at cost | 1,809 | 1,783 |
Loans held for sale | ||
Net loans receivable | 5,813 | 6,474 |
Accrued interest | ||
Financial liabilities: | ||
Non-interest bearing demand | ||
NOW and money market accounts | ||
Savings | ||
Time deposits | ||
Total deposits | ||
Federal Home Loan Bank Advances | ||
Short term borrowings | ||
Junior subordinated debentures | ||
Accrued interest payable | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial Assets: | ||
Cash and short term investments | 21,999 | 22,941 |
Held-to-maturity securities | 17,193 | 17,371 |
Investment securities available-for-sale | 253,394 | 264,687 |
Other investments, at cost | 1,809 | 1,783 |
Loans held for sale | 5,707 | 2,962 |
Net loans receivable | 541,495 | 484,595 |
Accrued interest | 2,925 | 2,877 |
Financial liabilities: | ||
Non-interest bearing demand | 182,915 | 156,247 |
NOW and money market accounts | 327,459 | 318,308 |
Savings | 75,012 | 60,699 |
Time deposits | 181,236 | 180,897 |
Total deposits | 766,622 | 716,151 |
Federal Home Loan Bank Advances | 24,035 | 24,788 |
Short term borrowings | 19,527 | 21,033 |
Junior subordinated debentures | 14,964 | 14,964 |
Accrued interest payable | 602 | 652 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Financial Assets: | ||
Cash and short term investments | 21,999 | 22,941 |
Held-to-maturity securities | 17,114 | 17,555 |
Investment securities available-for-sale | 253,394 | 264,687 |
Other investments, at cost | 1,809 | 1,783 |
Loans held for sale | 5,707 | 2,962 |
Net loans receivable | 540,487 | 484,669 |
Accrued interest | 2,925 | 2,877 |
Financial liabilities: | ||
Non-interest bearing demand | 182,915 | 156,247 |
NOW and money market accounts | 327,459 | 318,308 |
Savings | 75,012 | 60,699 |
Time deposits | 181,638 | 181,325 |
Total deposits | 767,024 | 716,579 |
Federal Home Loan Bank Advances | 24,518 | 25,841 |
Short term borrowings | 19,527 | 21,033 |
Junior subordinated debentures | 15,258 | 14,954 |
Accrued interest payable | $ 602 | $ 652 |
FAIR VALUE MEASUREMENT (Detai67
FAIR VALUE MEASUREMENT (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 253,394 | $ 264,687 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 253,394 | 264,687 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,520 | 1,522 |
Government sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 997 | 992 |
Small Business Administration pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 50,184 | 57,328 |
State and local government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 54,534 | 57,295 |
Corporate and other securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,861 | 1,289 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 253,394 | 264,687 |
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,520 | 1,522 |
Fair Value, Measurements, Recurring [Member] | Government sponsored enterprises [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 997 | 992 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 144,298 | 146,261 |
Fair Value, Measurements, Recurring [Member] | Small Business Administration pools [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 50,184 | 57,328 |
Fair Value, Measurements, Recurring [Member] | State and local government [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 54,534 | 57,295 |
Fair Value, Measurements, Recurring [Member] | Corporate and other securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,861 | 1,289 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 801 | 812 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 801 | 812 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate and other securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 801 | 812 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 251,593 | 263,458 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 251,593 | 263,458 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,520 | 1,522 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Government sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 997 | 992 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 144,298 | 146,261 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Small Business Administration pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 50,184 | 57,328 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | State and local government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 54,534 | 57,295 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate and other securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 60 | 60 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,000 | 417 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 1,000 | 417 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate and other securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 1,000 | $ 417 |
FAIR VALUE MEASUREMENT (Detai68
FAIR VALUE MEASUREMENT (Details 3) - Corporate Preferred Stock [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of changes in level 3 financial instruments | ||
Balance at the beginning of the period | $ 417 | $ 417 |
Total gains or losses (realized/unrealized) | ||
Included in earnings | ||
Included in other comprehensive income | ||
Purchases, issuances, and settlements | 583 | |
Balance at the end of the period | $ 1,000 | $ 417 |
FAIR VALUE MEASUREMENT (Detai69
FAIR VALUE MEASUREMENT (Details 4) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | $ 5,819 | $ 6,477 | $ 8,559 |
Total other real estate owned | 1,146 | 2,458 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 5,813 | 6,474 | |
Total other real estate owned | 1,146 | 2,458 | |
Total | 6,959 | 8,932 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 5,813 | 6,474 | |
Total other real estate owned | 1,146 | 2,458 | |
Total | 6,959 | 8,932 | |
Commercial and Industrial Loans Receivable [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 9 | ||
Commercial and Industrial Loans Receivable [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 9 | ||
Real Estate Construction Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other real estate owned | 141 | 276 | |
Real Estate Construction Loans [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other real estate owned | 141 | 276 | |
Real estate Mortgage-residential [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 637 | 845 | |
Total other real estate owned | 269 | 191 | |
Real estate Mortgage-residential [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 637 | 845 | |
Total other real estate owned | 269 | 191 | |
Real estate Mortgage-commercial [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 5,120 | 5,620 | |
Total other real estate owned | 736 | 1,991 | |
Real estate Mortgage-commercial [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 5,120 | 5,620 | |
Total other real estate owned | 736 | 1,991 | |
Consumer Home Equity Line of Credit [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 56 | ||
Consumer Home Equity Line of Credit [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 56 | ||
Real estate Mortgage-commercial [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | |||
Real estate Mortgage-commercial [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans |
FAIR VALUE MEASUREMENT (Detai70
FAIR VALUE MEASUREMENT (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
OREO | $ 1,146 | $ 2,458 | |
Total impaired loans | 5,819 | 6,477 | $ 8,559 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Appraisal Value Comparison Sales Other Estimates Valuation Technique [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
OREO | $ 1,146 | $ 2,458 | |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Appraisal Value Comparison Sales Other Estimates Valuation Technique [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Rate (as a percent) | 6.00% | 6.00% | |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Appraisal Value Comparison Sales Other Estimates Valuation Technique [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Rate (as a percent) | 16.00% | 16.00% | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Appraisal Value Discounted Cash Flows Valuation Technique [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Total impaired loans | $ 5,813 | $ 6,474 | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Appraisal Value Discounted Cash Flows Valuation Technique [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Rate (as a percent) | 6.00% | 6.00% | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Appraisal Value Discounted Cash Flows Valuation Technique [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Rate (as a percent) | 16.00% | 16.00% | |
Preferred Stock [Member] | Fair Value, Inputs, Level 3 [Member] | Estimation Based on Comparable Non Listed Securities Valuation Technique [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Preferred stock | $ 1,000 | $ 417 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 37,184 | $ 37,385 | |
Accumulated depreciation | 7,351 | 7,456 | |
Property and Equipment Net | 29,833 | 29,929 | |
Provision for depreciation | 1,333 | 1,253 | $ 1,118 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 8,629 | 8,629 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 24,722 | 24,270 | |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,819 | 4,371 | |
Fixed assets in progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 14 | $ 115 |
GOODWILL, CORE DEPOSIT INTANG72
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 2,086 | $ 2,086 |
Accumulated amortization | (984) | (667) |
Net | 1,102 | 1,419 |
Core Deposits [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,548 | 1,548 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 538 | $ 538 |
GOODWILL, CORE DEPOSIT INTANG73
GOODWILL, CORE DEPOSIT INTANGIBLE AND OTHER ASSETS (Details Narrative) - USD ($) $ in Thousands | Jul. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill [Line Items] | ||||
Amortization of the intangibles | $ 318 | $ 387 | $ 280 | |
Palmetto South Mortgage Corporation [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill recorded | $ 571 |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other real estate owned | ||
Balance-beginning of year | $ 2,458 | $ 2,943 |
Additions | 579 | 240 |
Writedowns | 76 | 219 |
Sales | 1,815 | 506 |
Balance, end of year | $ 1,146 | $ 2,458 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits Details | ||
Non-interest bearing demand deposits | $ 182,915 | $ 156,247 |
NOW and money market accounts | 327,459 | 318,308 |
Savings | 75,012 | 60,699 |
Time deposits | 181,236 | 180,897 |
Total deposits | $ 766,622 | $ 716,151 |
DEPOSITS (Details 2)
DEPOSITS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Scheduled maturities of Certificates of Deposits | |||
2,017 | $ 96,576 | ||
2,018 | 39,620 | ||
2,019 | 21,931 | ||
2,020 | 10,195 | ||
2,021 | 12,912 | ||
Thereafter | 2 | ||
Total | 181,236 | $ 180,897 | |
Interest paid on certificates of deposits | |||
Interest paid on certificates of deposits of $100 thousand or more | 606 | 603 | $ 599 |
Deposits from directors and executive officers and their related interests | 10,300 | 8,100 | |
Amount of overdrafts classified as loans | 165 | 267 | |
Time deposits FDIC insurance limit of $250 thousand | $ 37,700 | $ 21,200 |
SECURITIES SOLD UNDER AGREEME77
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED MONEY (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Weighted average interest rate (as a percent) | 0.19% | 0.19% |
Maximum month-end balance | $ 23,700 | $ 22,900 |
Average outstanding balance during the year | $ 21,400 | 19,300 |
Fair market value of securities pledged as collateral as a percentage of the debt agreement | 100.00% | |
Line of Credit [Member] | ||
Short-term Debt [Line Items] | ||
Unused short-term lines of credit | $ 20,000 | $ 20,000 |
Minimum [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Maturity term of short-term debt | 1 day | |
Average rate paid (as a percent) | 0.19% | |
Maximum [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Maturity term of short-term debt | 4 days | |
Average rate paid (as a percent) | 0.20% |
ADVANCES FROM FEDERAL HOME LO78
ADVANCES FROM FEDERAL HOME LOAN BANK (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Advances from the FHLB, Amount | |||
2,017 | $ 11,000 | $ 15,250 | |
2,018 | 9,250 | ||
2,019 | 3,813 | ||
2,020 | 4,519 | 288 | |
2,021 | 4,703 | ||
Total | $ 24,035 | $ 24,788 | |
Advances from the FHLB, Rate | |||
2,017 | 0.65% | 3.98% | |
2,018 | 4.44% | ||
2,019 | 2.94% | ||
2,020 | 3.26% | 1.00% | |
2,021 | 3.09% | ||
Total | 1.98% | 4.12% | |
Additional disclosures | |||
Eligible loans pledged as collateral for advances | $ 40,200 | $ 48,200 | |
Average advances | $ 23,400 | $ 29,400 | |
Average interest rate (as a percent) | 2.96% | 3.96% | |
Maximum outstanding amount at any month end | $ 32,800 | $ 35,500 | |
Prepaid advances | $ 35,900 | 4,000 | 14,600 |
Realized losses on the early extinguishment | $ 459 | $ 199 | $ 351 |
JUNIOR SUBORDINATED DEBT (Detai
JUNIOR SUBORDINATED DEBT (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Sep. 16, 2005 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | FCC Capital Trust I [Member] | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Amount of aggregate liquidation | $ 15,000 | |
Junior Subordinated Debt [Member] | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Description of annual interest distribution basis | LIBOR | |
Annual distribution rate, basis spread (as a percent) | 2.57% | |
Maximum consecutive period available for deferral of interest payments on the securities | 6 years 8 months | |
Redemption price as a percentage of the principal amount if the securities are redeemed on or after September 16, 2009 | 100.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||
Federal | $ 2,491 | $ 2,116 | $ 1,232 |
State | 136 | 387 | 248 |
Total | 2,627 | 2,503 | 1,480 |
Deferred | |||
Federal | (460) | (227) | 502 |
State | |||
Total | (460) | (227) | 502 |
Total | $ 2,167 | $ 2,276 | $ 1,982 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation from expected federal tax expense to effective income tax expense (benefit) | |||
Expected federal income tax expense | $ 3,009 | $ 2,857 | $ 2,415 |
State income tax net of federal benefit | 90 | 255 | 164 |
Tax exempt interest | (608) | (531) | (392) |
Increase in cash surrender value life insurance | (206) | (139) | (140) |
Valuation allowance released | 2 | 35 | 55 |
Merger expenses | 70 | ||
Low income housing tax credits | (186) | (186) | (186) |
Other | 66 | (15) | (4) |
Total | $ 2,167 | $ 2,276 | $ 1,982 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Allowance for loan losses | $ 1,798 | $ 1,584 |
Excess tax basis of deductible intangible assets | 293 | 315 |
Excess tax basis of assets acquired | 215 | 537 |
Net operating loss carry forward | 424 | 388 |
Unrealized loss on available-for-sale securities | 642 | |
Compensation expense deferred for tax purposes | 1,286 | 1,133 |
Deferred loss on other-than-temporary-impairment charges | 8 | 8 |
Tax credit carry-forwards | 17 | 699 |
Other | 675 | 754 |
Total deferred tax asset | 5,358 | 5,418 |
Valuation reserve | 489 | 487 |
Total deferred tax asset net of valuation reserve | 4,869 | 4,931 |
Liabilities: | ||
Tax depreciation in excess of book depreciation | 357 | 411 |
Excess financial reporting basis of assets acquired | 1,310 | 1,368 |
Unrealized gain on available-for-sale securities | 410 | |
Total deferred tax liabilities | 1,667 | 2,189 |
Net deferred tax asset recognized | $ 3,202 | $ 2,742 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2014 |
Federal [Member] | ||
Valuation allowance disclosure | ||
Operating loss carry forward, net | ||
State [Member] | ||
Valuation allowance disclosure | ||
Operating loss carry forward, net | $ 12,800 |
COMMITMENTS, CONCENTRATIONS O84
COMMITMENTS, CONCENTRATIONS OF CREDIT RISK AND CONTINGENCIES (Details Narrative) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)N | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Concentration Risk [Line Items] | |||
Total loan | $ 546,709 | $ 489,191 | $ 443,844 |
First Community Bank [Member] | |||
Concentration Risk [Line Items] | |||
Concentrations of credit risk threshold, amounts loaned to multiple borrowers engaged in similar business activities as a percentage of risk based capital | 25.00% | ||
Concentrations of credit risk threshold amount of risk entity's risk based capital, amounts loaned to multiple borrowers engaged in similar business activities | $ 23,300 | ||
Number of concentration risks | N | 3 | ||
First Community Bank [Member] | Loans Receivable [Member] | Credit Concentration Risk [Member] | Real estate Mortgage-commercial [Member] | |||
Concentration Risk [Line Items] | |||
Total loan | $ 406,000 | ||
Percentage of concentration risk | 74.20% | ||
First Community Bank [Member] | Loans Receivable [Member] | Credit Concentration Risk [Member] | Private Households [Member] | |||
Concentration Risk [Line Items] | |||
Total loan | $ 98,000 | ||
Percentage of concentration risk | 17.90% | ||
First Community Bank [Member] | Loans Receivable [Member] | Credit Concentration Risk [Member] | Lessors of Residential Properties [Member] | |||
Concentration Risk [Line Items] | |||
Total loan | $ 93,400 | ||
Percentage of concentration risk | 17.10% | ||
First Community Bank [Member] | Loans Receivable [Member] | Credit Concentration Risk [Member] | Religious Organizations [Member] | |||
Concentration Risk [Line Items] | |||
Total loan | $ 38,700 | ||
Percentage of concentration risk | 7.10% | ||
First Community Bank [Member] | Regulatory Capital [Member] | Credit Concentration Risk [Member] | Private Households [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 98.00% | ||
First Community Bank [Member] | Real estate Mortgage-commercial [Member] | Credit Concentration Risk [Member] | Commercial Real Estate Loans Related to Owner Occupied Properties [Member] | |||
Concentration Risk [Line Items] | |||
Total loan | $ 156,000 | ||
Percentage of concentration risk | 38.40% |
OTHER EXPENSES (Details)
OTHER EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |||
ATM/debit card and bill payment processing | $ 798 | $ 605 | $ 569 |
Supplies | 130 | 137 | 153 |
Telephone | 349 | 357 | 373 |
Courier | 95 | 89 | 85 |
Correspondent services | 237 | 207 | 188 |
Insurance | 291 | 265 | 279 |
Postage | 182 | 185 | 189 |
Loss on limited partnership interest | 172 | 188 | 187 |
Director fees | 391 | 367 | 356 |
Professional fees | 738 | 586 | 766 |
Shareholder expense | 172 | 130 | 170 |
Other | 1,207 | 1,123 | 920 |
Total | $ 4,762 | $ 4,239 | $ 4,235 |
STOCK OPTIONS AND RESTRICTED 86
STOCK OPTIONS AND RESTRICTED STOCK (Details) | 12 Months Ended | |
Dec. 31, 2016N$ / sharesshares | Dec. 31, 2015$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number of shares reserved for future grants | 141,045 | 163,531 |
Shares reserved that were approved by shareholders at the annual meeting | 350,000 | |
Number of members of the board of directors in stock option committee | N | 2 | |
Exercisable period | 10 years | |
Shares | ||
Outstanding at the beginning of the period (in shares) | 69,903 | |
Forfeited (in shares) | (69,903) | |
Outstanding at the end of the period (in shares) | 69,903 | |
Weighted Average Exercise Price | ||
Outstanding at the beginning of the period | $ / shares | $ 19.44 | |
Forfeited (in dollars per share) | $ / shares | 19.44 | |
Outstanding at the end of the period | $ / shares | $ 19.44 | |
Weighted-Average Remaining Contractual Term (Years) | ||
Outstanding at the end of the period | 1 month 24 days | 1 year 1 month 6 days |
STOCK OPTIONS AND RESTRICTED 87
STOCK OPTIONS AND RESTRICTED STOCK (Details Narrative) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Subordinated Debt [Member] | |||
Restricted stock | |||
Warrants to purchase | 97,180 | ||
Exercise price per share (in dollars per share) | $ 5.90 | ||
Restricted Stock [Member] | Director [Member] | |||
Restricted stock | |||
Restricted stock issued to each officer (in shares) | 379 | 427 | 455 |
Restricted stock issued (in shares) | 5,303 | 6,410 | 5,460 |
Value of restricted stock issued (in dollars per share) | $ 13.20 | $ 11.70 | $ 10.98 |
Restricted Stock [Member] | Executive Officer [Member] | |||
Restricted stock | |||
Restricted stock issued to each officer (in shares) | 17,179 | 6,463 | 36,372 |
Value of restricted stock issued (in dollars per share) | $ 13.20 | $ 11.70 | $ 10.98 |
Restricted Stock [Member] | Executive Officer [Member] | Savannah River Financial Corporation [Member] | |||
Restricted stock | |||
Restricted stock issued to each officer (in shares) | 29,228 | ||
Value of restricted stock issued (in dollars per share) | $ 10.55 |
EMPLOYEE BENEFIT PLAN (Details
EMPLOYEE BENEFIT PLAN (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
401(k) plan | |||
Plan expense | $ 372 | $ 364 | $ 347 |
Employer match of employee contributions of first 3% of eligible compensation (as a percent) | 100.00% | ||
Percentage of eligible compensation, matched 100% by employer | 3.00% | ||
Employer match of employee contributions of next 2% of eligible compensation (as a percent) | 50.00% | ||
Percentage of eligible compensation, matched 50% by employer | 2.00% |
EMPLOYEE BENEFIT PLAN (Detail89
EMPLOYEE BENEFIT PLAN (Details Narrative 2) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016USD ($)N | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2007USD ($)N | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Cash surrender value of bank-owned life insurance | $ 20,905 | $ 20,301 | ||
Salary Continuation Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Expenses accrued for the anticipated benefits | $ 604 | $ 409 | $ 391 | |
Two Key Individuals [Member] | Salary Continuation Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Number of individuals covered under the plan | N | 2 | |||
Requisite age of individuals to be covered under the plan | 63 years | |||
Monthly benefits | $ 2,500 | |||
Period for which monthly benefits are provided | 17 years | |||
Additional single premium life insurance policies purchased | $ 3,500 | |||
Six Additional Key Officers [Member] | Salary Continuation Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Number of individuals covered under the plan | N | 6 | |||
Period for which monthly benefits are provided | 15 years | |||
Additional single premium life insurance policies purchased | $ 5,200 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||||||
Numerator (Included in basic and diluted earnings per share) | $ 1,792 | $ 1,677 | $ 1,745 | $ 1,468 | $ 1,601 | $ 1,679 | $ 1,443 | $ 1,404 | $ 1,506 | $ 1,552 | $ 1,201 | $ 862 | $ 6,682 | $ 6,127 | $ 5,121 |
Weighted average common shares outstanding for: | |||||||||||||||
Basic earnings common per share (in shares) | 6,617 | 6,558 | 6,538 | ||||||||||||
Dilutive securities: | |||||||||||||||
Deferred compensation (in shares) | 112 | 110 | 23 | ||||||||||||
Warrants - Treasury stock method (in shares) | 58 | 51 | 46 | ||||||||||||
Diluted earnings per share (in shares) | 6,787 | 6,719 | 6,607 | ||||||||||||
The average market price used in calculating assumed number of shares (in dollars per share) | $ 14.86 | $ 12.31 | $ 10.83 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - USD ($) $ in Thousands | Dec. 16, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Outstanding securities not deemed to be dilutive (in shares) | 69,903 | |||
Junior Subordinated Debt [Member] | ||||
Debt issued | $ 2,500 | |||
Warrant [Member] | ||||
Warrants issued (in shares) | 107,500 |
SHAREHOLDERS' EQUITY, CAPITAL92
SHAREHOLDERS' EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Tier 1 Capital | ||
Actual Amount | $ 91,966 | $ 86,682 |
Actual Ratio (as a percent) | 14.50% | 15.40% |
Required to be Categorized Adequately Capitalized Amount | $ 38,126 | $ 33,782 |
Required to be Categorized Adequately Capitalized Ratio (as a percent) | 6.00% | 6.00% |
Required to be Categorized Well Capitalized Amount | $ 53,840 | $ 52,900 |
Required to be Categorized Well Capitalized Ratio (as a percent) | 8.50% | 9.40% |
Total Risked Based Capital | ||
Actual Amount | $ 97,180 | $ 91,278 |
Actual Ratio (as a percent) | 15.30% | 16.20% |
Required to be Categorized Adequately Capitalized Amount | $ 50,835 | $ 45,043 |
Required to be Categorized Adequately Capitalized Ratio (as a percent) | 8.00% | 8.00% |
Required to be Categorized Well Capitalized Amount | $ 46,345 | $ 46,235 |
Required to be Categorized Well Capitalized Ratio (as a percent) | 7.30% | 8.20% |
Tier 1 Leverage | ||
Actual Amount | $ 91,966 | $ 86,682 |
Actual Ratio (as a percent) | 10.20% | 10.20% |
Required to be Categorized Adequately Capitalized Amount | $ 35,957 | $ 34,021 |
Required to be Categorized Adequately Capitalized Ratio (as a percent) | 4.00% | 4.00% |
Required to be Categorized Well Capitalized Amount | $ 56,009 | $ 52,661 |
Required to be Categorized Well Capitalized Ratio (as a percent) | 6.20% | 6.20% |
Common Equity Tier I | ||
Actual Amount | $ 77,466 | $ 72,444 |
Actual Ratio (as a percent) | 12.20% | 12.90% |
Required to be Categorized Adequately Capitalized Amount | $ 28,595 | $ 25,336 |
Required to be Categorized Adequately Capitalized Ratio (as a percent) | 4.50% | 4.50% |
Required to be Categorized Well Capitalized Amount | $ 48,871 | $ 47,108 |
Required to be Categorized Well Capitalized Ratio (as a percent) | 7.70% | 8.40% |
First Community Bank [Member] | ||
Tier 1 Capital | ||
Actual Amount | $ 87,657 | $ 82,512 |
Actual Ratio (as a percent) | 13.80% | 14.70% |
Required to be Categorized Adequately Capitalized Amount | $ 38,011 | $ 33,640 |
Required to be Categorized Adequately Capitalized Ratio (as a percent) | 6.00% | 6.00% |
Required to be Categorized Well Capitalized Amount | $ 49,646 | $ 48,872 |
Required to be Categorized Well Capitalized Ratio (as a percent) | 7.80% | 8.70% |
Total Risked Based Capital | ||
Actual Amount | $ 92,871 | $ 87,108 |
Actual Ratio (as a percent) | 14.70% | 15.50% |
Required to be Categorized Adequately Capitalized Amount | $ 50,681 | $ 44,855 |
Required to be Categorized Adequately Capitalized Ratio (as a percent) | 8.00% | 8.00% |
Required to be Categorized Well Capitalized Amount | $ 42,190 | $ 42,253 |
Required to be Categorized Well Capitalized Ratio (as a percent) | 6.70% | 7.50% |
Tier 1 Leverage | ||
Actual Amount | $ 87,657 | $ 82,512 |
Actual Ratio (as a percent) | 9.80% | 9.70% |
Required to be Categorized Adequately Capitalized Amount | $ 35,875 | $ 33,923 |
Required to be Categorized Adequately Capitalized Ratio (as a percent) | 4.00% | 4.00% |
Required to be Categorized Well Capitalized Amount | $ 51,782 | $ 48,589 |
Required to be Categorized Well Capitalized Ratio (as a percent) | 5.80% | 5.70% |
Common Equity Tier I | ||
Actual Amount | $ 87,657 | $ 82,512 |
Actual Ratio (as a percent) | 13.80% | 14.70% |
Required to be Categorized Adequately Capitalized Amount | $ 28,508 | $ 25,230 |
Required to be Categorized Adequately Capitalized Ratio (as a percent) | 4.50% | 4.50% |
Required to be Categorized Well Capitalized Amount | $ 59,149 | $ 57,282 |
Required to be Categorized Well Capitalized Ratio (as a percent) | 9.30% | 10.20% |
SHAREHOLDERS' EQUITY, CAPITAL93
SHAREHOLDERS' EQUITY, CAPITAL REQUIREMENTS AND DIVIDEND RESTRICTIONS (Details Narrative 2) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Cash dividends paid as percentage of net income | 100.00% |
PARENT COMPANY FINANCIAL INFO94
PARENT COMPANY FINANCIAL INFORMATION (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets: | ||||
Cash on deposit | $ 11,925 | $ 10,973 | ||
Investment securities available-for-sale | 253,394 | 264,687 | ||
Land held for sale | 1,055 | 1,080 | ||
Total assets | 914,793 | 862,734 | ||
Liabilities: | ||||
Junior subordinated debentures | 14,964 | 14,964 | ||
Other | 7,784 | 6,760 | ||
Total liabilities | 832,932 | 783,696 | ||
Shareholders' equity | 81,861 | 79,038 | $ 74,528 | $ 52,671 |
Total liabilities and shareholders' equity | 914,793 | 862,734 | ||
Parent Company [Member] | ||||
Assets: | ||||
Cash on deposit | 2,732 | 2,088 | ||
Securities purchased under agreement to resell | 128 | 128 | ||
Investment securities available-for-sale | 417 | |||
Land held for sale | 1,055 | 1,080 | ||
Investment in bank subsidiary | 92,053 | 89,368 | ||
Other | 1,005 | 1,045 | ||
Total assets | 96,973 | 94,126 | ||
Liabilities: | ||||
Junior subordinated debentures | 14,964 | 14,964 | ||
Other | 148 | 124 | ||
Total liabilities | 15,112 | 15,088 | ||
Shareholders' equity | 81,861 | 79,038 | ||
Total liabilities and shareholders' equity | $ 96,973 | $ 94,126 |
PARENT COMPANY FINANCIAL INFO95
PARENT COMPANY FINANCIAL INFORMATION (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income: | |||||||||||||||
Interest and dividend income | $ 7,510 | $ 7,400 | $ 7,459 | $ 7,137 | $ 7,203 | $ 7,114 | $ 7,049 | $ 7,283 | $ 7,078 | $ 6,968 | $ 6,849 | $ 6,403 | $ 29,506 | $ 28,649 | $ 27,298 |
Gain on early extinguishment of debt | (459) | (199) | (351) | ||||||||||||
Expenses: | |||||||||||||||
Interest expense | 3,047 | 3,396 | 3,568 | ||||||||||||
Other | 4,762 | 4,239 | 4,235 | ||||||||||||
Total non-interest expense | 25,776 | 24,678 | 23,960 | ||||||||||||
Income tax benefit | 2,167 | 2,276 | 1,982 | ||||||||||||
Net income | $ 1,792 | $ 1,677 | $ 1,745 | $ 1,468 | $ 1,601 | $ 1,679 | $ 1,443 | $ 1,404 | $ 1,506 | $ 1,552 | $ 1,201 | $ 862 | 6,682 | 6,127 | 5,121 |
Parent Company [Member] | |||||||||||||||
Income: | |||||||||||||||
Interest and dividend income | 126 | 58 | 40 | ||||||||||||
Gain on early extinguishment of debt | 130 | ||||||||||||||
Equity in undistributed earnings of subsidiary | 4,752 | 4,690 | 4,510 | ||||||||||||
Dividend income from bank subsidiary | 2,606 | 2,181 | 1,369 | ||||||||||||
Total income | 7,484 | 7,059 | 5,919 | ||||||||||||
Expenses: | |||||||||||||||
Interest expense | 493 | 446 | 427 | ||||||||||||
Other | 570 | 792 | 708 | ||||||||||||
Total non-interest expense | 1,063 | 1,238 | 1,135 | ||||||||||||
Income before taxes | 6,421 | 5,821 | 4,784 | ||||||||||||
Income tax benefit | (261) | (306) | (337) | ||||||||||||
Net income | $ 6,682 | $ 6,127 | $ 5,121 |
PARENT COMPANY FINANCIAL INFO96
PARENT COMPANY FINANCIAL INFORMATION (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||||||||||||||
Net income | $ 1,792 | $ 1,677 | $ 1,745 | $ 1,468 | $ 1,601 | $ 1,679 | $ 1,443 | $ 1,404 | $ 1,506 | $ 1,552 | $ 1,201 | $ 862 | $ 6,682 | $ 6,127 | $ 5,121 |
Adjustments to reconcile net income to net cash (used) provided by operating activities | |||||||||||||||
Gain on early extinguishment of debt | (459) | (199) | (351) | ||||||||||||
Net cash (used) provided by operating activities | 5,135 | 14,508 | 12,007 | ||||||||||||
Cash flows from investing activities: | |||||||||||||||
Proceeds from sale of securities available-for-sale | 33,215 | 26,099 | 49,007 | ||||||||||||
Net cash provided (used) by investing activities | (51,536) | (57,981) | (35,206) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||
Dividends paid: Common Stock | (2,117) | (1,833) | (1,484) | ||||||||||||
Restricted shares surrendered | (353) | (98) | |||||||||||||
Repayment of long term debt | (370) | ||||||||||||||
Net cash used in financing activities | 45,459 | 43,882 | 31,565 | ||||||||||||
Increase (decrease) in cash and cash equivalents | (942) | 409 | 8,366 | ||||||||||||
Cash and cash equivalents at beginning of year | 22,941 | 22,532 | 14,166 | 22,941 | 22,532 | 14,166 | |||||||||
Cash and cash equivalents at end of year | 21,999 | 22,941 | 22,532 | 21,999 | 22,941 | 22,532 | |||||||||
Parent Company [Member] | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | 6,682 | 6,127 | 5,121 | ||||||||||||
Adjustments to reconcile net income to net cash (used) provided by operating activities | |||||||||||||||
Equity in undistributed earnings of subsidiary | (4,752) | (4,690) | (4,510) | ||||||||||||
Gain on early extinguishment of debt | 130 | ||||||||||||||
Other-net | 463 | 63 | 647 | ||||||||||||
Net cash (used) provided by operating activities | 2,393 | 1,630 | 1,258 | ||||||||||||
Cash flows from investing activities: | |||||||||||||||
Proceeds from sale of securities available-for-sale | 417 | ||||||||||||||
Net cash provided (used) by investing activities | 417 | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||
Dividends paid: Common Stock | (2,117) | (1,833) | (1,484) | ||||||||||||
Proceeds from issuance of common stock | 304 | 229 | 173 | ||||||||||||
Restricted shares surrendered | (353) | (98) | |||||||||||||
Repayment of long term debt | (370) | ||||||||||||||
Net cash used in financing activities | (2,166) | (2,072) | (1,311) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 644 | (442) | (53) | ||||||||||||
Cash and cash equivalents at beginning of year | $ 2,088 | $ 2,530 | $ 2,583 | 2,088 | 2,530 | 2,583 | |||||||||
Cash and cash equivalents at end of year | $ 2,732 | $ 2,088 | $ 2,530 | $ 2,732 | $ 2,088 | $ 2,530 |
QUARTERLY FINANCIAL DATA (UNA97
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Interest income | $ 7,510 | $ 7,400 | $ 7,459 | $ 7,137 | $ 7,203 | $ 7,114 | $ 7,049 | $ 7,283 | $ 7,078 | $ 6,968 | $ 6,849 | $ 6,403 | $ 29,506 | $ 28,649 | $ 27,298 |
Net interest income | 6,794 | 6,651 | 6,677 | 6,337 | 6,348 | 6,253 | 6,204 | 6,448 | 6,192 | 6,096 | 5,947 | 5,496 | 26,459 | 25,253 | 23,730 |
Provision for loan losses | 238 | 179 | 217 | 140 | 148 | 193 | 391 | 406 | 179 | 152 | 400 | 150 | 774 | 1,138 | 880 |
Gain (loss) on sale of securities | 478 | 64 | 59 | 84 | 167 | 104 | 80 | 16 | 78 | 8 | 601 | 355 | 182 | ||
Income before income taxes | 2,238 | 2,276 | 2,391 | 1,944 | 2,169 | 2,322 | 1,989 | 1,923 | 2,063 | 2,184 | 1,661 | 1,195 | 8,849 | 8,403 | 7,103 |
Net income | 1,792 | 1,677 | 1,745 | 1,468 | 1,601 | 1,679 | 1,443 | 1,404 | 1,506 | 1,552 | 1,201 | 862 | 6,682 | 6,127 | 5,121 |
Net income available to common shareholders | $ 1,792 | $ 1,677 | $ 1,745 | $ 1,468 | $ 1,601 | $ 1,679 | $ 1,443 | $ 1,404 | $ 1,506 | $ 1,552 | $ 1,201 | $ 862 | $ 6,682 | $ 6,127 | $ 5,121 |
Net income per share, basic (in dollars per share) | $ 0.27 | $ 0.26 | $ 0.27 | $ 0.22 | $ 0.24 | $ 0.26 | $ 0.22 | $ 0.22 | $ 0.23 | $ 0.23 | $ 0.18 | $ 0.14 | $ 1.01 | $ 0.93 | $ 0.78 |
Net income per share, diluted (in dollars per share) | $ 0.26 | $ 0.25 | $ 0.26 | $ 0.22 | $ 0.24 | $ 0.25 | $ 0.22 | $ 0.21 | $ 0.22 | $ 0.23 | $ 0.18 | $ 0.14 | $ 0.98 | $ 0.91 | $ 0.78 |