Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Feb. 28, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TRINITY CAPITAL CORP | |
Entity Central Index Key | 99,771 | |
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 | $ 43,697,000 | |
Entity Common Stock, Shares Outstanding | 17,513,794 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | FY | |
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 13,537 | $ 13,506 |
Interest-bearing deposits with banks | 105,798 | 151,049 |
Securities purchased under resell agreements | 0 | 24,320 |
Cash and cash equivalents | 119,335 | 188,875 |
Investment securities available for sale, at fair value | 439,650 | 316,040 |
Investment securities held to maturity, at amortized cost (fair value of $8,613 and $8,988 as of December 31, 2016 and 2015, respectively) | 8,824 | 8,986 |
Non-marketable equity securities | 3,812 | 3,854 |
Loans held for sale | 0 | 3,041 |
Loans (net of allowance for loan losses of $14,352 and $17,392 as of December 31, 2016 and 2015, respectively) | 771,138 | 822,396 |
Mortgage servicing rights ("MSRs"), net | 6,905 | 6,882 |
Bank owned life insurance ("BOLI") | 10,191 | 0 |
Premises and equipment, net | 25,959 | 23,373 |
Other real estate owned ("OREO"), net | 8,436 | 8,346 |
Other assets | 31,376 | 17,192 |
Total assets | 1,425,626 | 1,398,985 |
Deposits: | ||
Noninterest-bearing | 28,301 | 75,867 |
Interest-bearing | 1,186,788 | 1,178,091 |
Total deposits | 1,215,089 | 1,253,958 |
Long-term borrowings | 2,300 | 2,300 |
Junior subordinated debenture | 37,116 | 37,116 |
Other liabilities | 33,822 | 26,621 |
Total liabilities | 1,288,327 | 1,319,995 |
Stock owned by Employee Stock Ownership Plan ("ESOP") participants; 671,962 shares and 672,623 shares as of December 31, 2016 and 2015, respectively, at fair value | 3,192 | 2,690 |
Commitments and contingencies (Notes 11, 15 and 17) | ||
Stockholders' equity | ||
Common stock, no par, 20,000,000 shares authorized; 9,199,306 and 6,856,800 shares issued; 9,199,306 shares and 6,491,802 shares outstanding as of December 31, 2016 and 2015, respectively | 9,510 | 6,836 |
Additional paid-in capital | 694 | 1,153 |
Retained earnings | 55,391 | 44,232 |
Accumulated other comprehensive loss | (5,495) | (2,781) |
Total stockholders' equity before treasury stock | 134,107 | 86,180 |
Treasury stock, at cost; 0 shares and 364,998 shares as of December 31, 2016 and 2015, respectively | 0 | (9,880) |
Total stockholders' equity | 134,107 | 76,300 |
Total liabilities and stockholders' equity | 1,425,626 | 1,398,985 |
Series A Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock | 35,068 | 34,858 |
Series B Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock | 1,850 | 1,882 |
Series C Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock | $ 37,089 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
ASSETS | ||
Investment securities held to maturity, at amortized cost | $ 8,613 | $ 8,988 |
Net of allowance for loan losses | $ 14,352 | $ 17,392 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Participants, stock ownership (in shares) | 671,962 | 672,623 |
Stockholders' equity | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, issued (in shares) | 9,199,306 | 6,856,800 |
Common stock, outstanding (in shares) | 9,199,306 | 6,491,802 |
Treasury stock, shares (in shares) | 0 | 364,998 |
Series A Preferred Stock [Member] | ||
Stockholders' equity | ||
Cumulative perpetual percentage | 9.00% | 9.00% |
Preferred stock, issued (in shares) | 35,539 | 35,539 |
Preferred stock, outstanding (in shares) | 35,539 | 35,539 |
Liquidation value (in dollars per share) | $ 1,000 | $ 1,000 |
Series B Preferred Stock [Member] | ||
Stockholders' equity | ||
Cumulative perpetual percentage | 9.00% | 9.00% |
Preferred stock, issued (in shares) | 1,777 | 1,777 |
Preferred stock, outstanding (in shares) | 1,777 | 1,777 |
Liquidation value (in dollars per share) | $ 1,000 | $ 1,000 |
Series C Preferred Stock [Member] | ||
Stockholders' equity | ||
Cumulative perpetual percentage | 0.00% | |
Preferred stock, issued (in shares) | 82,862 | |
Preferred stock, outstanding (in shares) | 82,862 | |
Liquidation value (in dollars per share) | $ 475 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | |||
Loans, including fees | $ 38,915 | $ 42,364 | $ 48,766 |
Interest and dividends on investment securities: | |||
Taxable | 7,716 | 3,956 | 2,081 |
Nontaxable | 520 | 175 | 452 |
Other interest income | 697 | 1,109 | 851 |
Total interest income | 47,848 | 47,604 | 52,150 |
Interest expense: | |||
Deposits | 2,279 | 2,939 | 3,933 |
Borrowings | 146 | 285 | 995 |
Junior subordinated debt | 2,942 | 2,652 | 2,428 |
Total interest expense | 5,367 | 5,876 | 7,356 |
Net interest income | 42,481 | 41,728 | 44,794 |
Provision for loan losses | 1,800 | 500 | 2,000 |
Net interest income after provision for loan losses | 40,681 | 41,228 | 42,794 |
Noninterest income: | |||
Mortgage loan servicing fees | 2,056 | 2,298 | 2,428 |
Trust and investment services fees | 2,260 | 2,604 | 2,564 |
Service charges on deposits | 1,025 | 1,262 | 1,528 |
Net gain (loss) on sale of OREO | 1,810 | 427 | (2,012) |
Net gain on sale of loans | 1,918 | 2,629 | 2,373 |
Net gain on sale of securities | 184 | 4 | 1 |
BOLI income | 191 | 0 | 0 |
Other fees | 2,279 | 2,107 | 1,806 |
Other noninterest income (loss) | 104 | (1,202) | 317 |
Total noninterest income | 11,827 | 10,129 | 9,005 |
Noninterest expenses: | |||
Salaries and employee benefits | 25,630 | 24,482 | 25,269 |
Occupancy | 3,205 | 3,452 | 4,204 |
Data processing | 3,818 | 2,979 | 3,155 |
Legal, professional, and audit fees | 6,376 | 7,304 | 10,868 |
Amortization and valuation of MSRs | 558 | 1,393 | 1,673 |
Other noninterest expense | 10,484 | 9,833 | 11,452 |
Total noninterest expenses | 50,071 | 49,443 | 56,621 |
Income (loss) before provision for income taxes | 2,437 | 1,914 | (4,822) |
(Benefit) provision for income taxes | (13,676) | 0 | 1,170 |
Net income (loss) | 16,113 | 1,914 | (5,992) |
Dividends and discount accretion on preferred shares | 4,272 | 3,803 | 3,230 |
Net income (loss) available to common shareholders | $ 11,841 | $ (1,889) | $ (9,222) |
Basic earnings (loss) per common share (in dollars per share) | $ 1.79 | $ (0.29) | $ (1.43) |
Diluted earnings (loss) per common share (in dollars per share) | $ 1.71 | $ (0.29) | $ (1.43) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) [Abstract] | |||
Net income (loss) | $ 16,113 | $ 1,914 | $ (5,992) |
Other comprehensive loss: | |||
Unrealized losses on securities available for sale | (4,290) | (2,222) | (89) |
Securities gains reclassified into earnings | (184) | (4) | (1) |
Related income tax benefit | 1,760 | 0 | 36 |
Other comprehensive loss | (2,714) | (2,226) | (54) |
Total comprehensive income (loss) | $ 13,399 | $ (312) | $ (6,046) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock Issued [Member] | Common Stock Held in Treasury at Cost [Member] | Preferred Stock [Member] | Preferred Stock [Member]Series C Preferred Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | Series C Preferred Stock [Member] |
Balance at Dec. 31, 2013 | $ 6,836 | $ (10,974) | $ 36,386 | $ 2,005 | $ 54,958 | $ (501) | $ 88,710 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (5,992) | (5,992) | |||||||
Other comprehensive income | (54) | (54) | |||||||
Dividends declared on preferred shares | (3,052) | (3,052) | |||||||
Amortization of preferred stock issuance costs | 177 | (177) | 0 | ||||||
Treasury shares issued | 86 | 14 | 100 | ||||||
Dissolution of subsidiary | (56) | (56) | |||||||
Net change in the fair value of stock owned by ESOP participants | 1,347 | 1,347 | |||||||
Balance at Dec. 31, 2014 | 6,836 | (10,888) | 36,563 | 1,963 | 47,084 | (555) | 81,003 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 1,914 | 1,914 | |||||||
Other comprehensive income | (2,226) | (2,226) | |||||||
Dividends declared on preferred shares | (3,917) | (3,917) | |||||||
Amortization of preferred stock issuance costs | 177 | (177) | 0 | ||||||
Treasury shares issued | 1,008 | (810) | 198 | ||||||
Net change in the fair value of stock owned by ESOP participants | (672) | (672) | |||||||
Balance at Dec. 31, 2015 | 6,836 | (9,880) | 36,740 | 1,153 | 44,232 | (2,781) | 76,300 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 16,113 | 16,113 | |||||||
Other comprehensive income | (2,714) | (2,714) | |||||||
Issued common stock - capital raise | 2,661 | 8,983 | $ 39,359 | 997 | 12,641 | $ 39,359 | |||
Common stock issuance costs | $ (2,270) | (769) | (769) | $ (2,270) | |||||
ESOP distribution | 1 | 2 | 3 | ||||||
Issue vested restricted stock units ("RSUs") | 12 | (12) | 0 | ||||||
RSUs granted in 2016 expenses | 82 | 82 | |||||||
Dividends declared on preferred shares | (4,272) | (4,272) | |||||||
Amortization of preferred stock issuance costs | 178 | (178) | 0 | ||||||
Treasury shares issued | 897 | (759) | 138 | ||||||
Net change in the fair value of stock owned by ESOP participants | (504) | (504) | |||||||
Balance at Dec. 31, 2016 | $ 9,510 | $ 0 | $ 74,007 | $ 694 | $ 55,391 | $ (5,495) | $ 134,107 |
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 (loss) | $ 16,113 | $ 1,914 | $ (5,992) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 5,423 | 1,653 | 2,409 |
Provision for loan losses | 1,800 | 500 | 2,000 |
Net (gain) loss on sale of investment securities | (184) | (4) | 1 |
Net gain on sale of loans | (1,918) | (2,629) | (2,373) |
(Gains) losses and write-downs on OREO, net | (1,699) | (243) | 2,079 |
Loss (gain) on disposal of premises and equipment | 1 | 27 | (3) |
(Increase) decrease in deferred income tax assets | (13,676) | 0 | 36 |
Federal Home Loan Bank (FHLB) stock dividends received | (4) | (4) | 0 |
Net amortization of MSRs | 1,455 | 1,515 | 1,676 |
Change in mortgage servicing rights valuation allowance | (897) | (122) | (4) |
BOLI income | (191) | 0 | 0 |
Compensation expense recognized for restricted stock units | 82 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Other Assets | 2,206 | 13,560 | 3,493 |
Other Liabilities | 2,929 | 1,527 | 2,661 |
Net cash provided by operating activities before origination and gross sales of loans held for sale | 11,440 | 17,694 | 5,983 |
Gross sales of loans held for sale | (51,392) | 81,561 | 78,679 |
Origination of loans held for sale | 55,770 | (77,163) | (79,612) |
Net cash provided by operating activities | 15,818 | 22,092 | 5,050 |
Cash Flows From Investing Activities | |||
Proceeds from maturities and paydowns of investment securities, available for sale | 55,059 | 64,316 | 62,562 |
Proceeds from sale of investment securities, available for sale | 98,259 | 10,951 | 0 |
Purchase of investment securities, available for sale | (285,978) | (179,718) | (157,101) |
Proceeds from maturities and paydowns of investment securities, held to maturity | 140 | 191 | 7,893 |
Proceeds from maturities and paydowns of investment securities, other | 0 | 374 | 0 |
Proceeds from sale of investment securities, other | 0 | 888 | 0 |
Purchase of investment securities, other | 0 | (36) | (160) |
Purchase bank owned life insurance | (10,000) | 0 | 0 |
Proceeds from sale of other real estate owned | 5,157 | 7,989 | 8,849 |
Proceeds from the bulk loan sale | 16,248 | 11,860 | 0 |
Loans paid down (funded), net | 66,755 | 88,263 | 130,448 |
Purchases of loans | (36,323) | (37,190) | (431) |
Purchases of premises and equipment | (4,905) | (350) | (538) |
Proceeds from sale of premises and equipment | 0 | 31 | 0 |
Net cash (used in) provided by investing activities | (95,588) | (32,178) | 51,522 |
Cash Flows From Financing Activities | |||
Net increase (decrease) in demand deposits, NOW accounts and savings accounts | 27,512 | 27,904 | (34,708) |
Net decrease in time deposits | (66,381) | (56,539) | (65,764) |
Repayment of borrowings | 0 | (20,000) | 0 |
Issuance of common stock for capital raise, net of costs | 11,872 | 0 | 0 |
Issuance of preferred stock for capital raise, net of costs | 37,089 | 0 | 0 |
Issuance of common stock for stock option plan | 138 | 198 | 100 |
Net cash (used in) financing activities | 10,230 | (48,437) | (100,372) |
Net decrease in cash and cash equivalents | (69,540) | (58,523) | (43,800) |
Cash and cash equivalents: | |||
Beginning of period | 188,875 | 247,398 | 291,198 |
End of period | 119,335 | 188,875 | 247,398 |
Cash payments for: | |||
Interest | 2,619 | 3,416 | 5,306 |
Non-cash investing and financing activities: | |||
Transfers from loans to other real estate owned | 5,187 | 3,958 | 11,523 |
Transfers from loans to repossessed assets | 0 | 16 | 42 |
Sales of other real estate owned financed by loans | 1,548 | 1,846 | 617 |
Transfers from loans to loans held for sale | 16,248 | 11,860 | 0 |
Transfer from PPE to other assets | 883 | 0 | 0 |
Transfer from held to maturity securities to loans | 0 | 2,457 | 0 |
Dividends declared, not yet paid | $ 4,272 | $ 3,917 | $ 3,052 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1. Significant Accounting Policies Consolidation: "Consolidation." Basis of presentation: Nature of operations: Deposits with banks and securities purchased under resell agreements: Investment securities: Purchase premiums and discounts are generally recognized in interest income using the interest method over the term of the securities. For mortgage-backed securities, estimates of prepayments are considered in the constant yield calculations. An investment security is impaired if the fair value of the security is less than its amortized cost basis. Once the security is impaired, a determination must be made to determine if it is other than temporarily impaired (“OTTI”). In determining OTTI losses, management considers many factors, including: current market conditions, fair value in relationship to cost; extent and nature of the change in fair value; issuer rating changes and trends; whether it intends to sell the security before recovery of the amortized cost basis of the investment, which may be maturity; and other factors. For debt securities, if management intends to sell the security or it is likely that the Bank will be required to sell the security before recovering its cost basis, the entire impairment loss would be recognized in earnings as an OTTI. If management does not intend to sell the security and it is not likely that the Bank will be required to sell the security, but management does not expect to recover the entire amortized cost basis of the security, only the portion of the impairment loss representing credit losses would be recognized in earnings. The credit loss on a security is measured as the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Projected cash flows are discounted by the original or current effective interest rate depending on the nature of the security being measured for potential OTTI. The remaining impairment related to the difference between the present value of the cash flows expected to be collected and fair value is recognized as a charge to other comprehensive income. Non-marketable equity securities: Loans held for sale: Mortgage loans held for sale were generally sold with servicing rights retained; however, management intends to sell newly originated mortgage loans with servicing rights released going forward. The carrying value of mortgage loans sold is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. As the Bank is no longer originating mortgage loans there are no new additions to the servicing rights portfolio. Loans: Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized as an adjustment of the related loan’s yield. The Company amortizes these amounts over the estimated life of the loan. Commitment fees based upon a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. Net deferred fees on real estate loans sold in the secondary market reduce the cost basis of such loans. Interest on loans is accrued and reported as income using the interest method on daily principal balances outstanding. Past due status is based on the contractual terms of the loan. The Company generally discontinues accruing interest on loans when the loan becomes 90 days or more past due or when management believes that the borrower’s financial condition is such that collection of interest is doubtful. Cash collections on nonaccrual loans are credited to the loan balance, and no interest income is recognized on those loans until the principal balance has been determined to be collectible. Such interest will be reported as income on a cash basis, only upon collection of such interest. For all classes of loans, other than those included in large groups of smaller-balance homogeneous loans, are considered impaired when it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral (less estimated disposition costs) if the loan is collateral dependent. The amount of impairment (if any) and any subsequent changes are included in the allowance for loan losses. A loan is classified as a troubled debt restructure (“TDR”) when a borrower is experiencing financial difficulties that lead to a restructuring of the loan, and the Company grants concessions to the borrower in the restructuring that it would not otherwise consider. These concessions may include rate reductions, principal forgiveness, extension of maturity date and other actions intended to minimize potential losses. In determining whether a debtor is experiencing financial difficulties, the Company considers if the debtor is in payment default or would be in payment default in the foreseeable future without the modification, the debtor declared or is in the process of declaring bankruptcy, there is substantial doubt that the debtor will continue as a going concern, the debtor has securities that have been or are in the process of being delisted, the debtor’s entity-specific projected cash flows will not be sufficient to service any of its debt, or the debtor cannot obtain funds from sources other than the existing creditors at a market rate for debt with similar risk characteristics. In determining whether the Company has granted a concession, the Company assesses, if it does not expect to collect all amounts due, whether the current value of the collateral will satisfy the amounts owed, whether additional collateral or guarantees from the debtor will serve as adequate compensation for other terms of the restructuring, and whether the debtor otherwise has access to funds at a market rate for debt with similar risk characteristics. A loan that is modified at a market rate of interest will not be classified as TDR in the calendar year subsequent to the restructuring if it is in compliance with the modified terms. Payment performance prior and subsequent to the restructuring is taken into account in assessing whether it is likely that the borrower can meet the new terms. A period of sustained repayment for at least six months generally is required for return to accrual status. Periodically, the Company will restructure a note into two separate notes (A/B structure), charging off the entire B portion of the note. The A note is structured with appropriate loan-to-value and cash flow coverage ratios that provide for a high likelihood of repayment. The A note is classified as a non-performing note until the borrower has displayed a historical payment performance for a reasonable time prior to and subsequent to the restructuring. A period of sustained repayment for at least six months generally is required to return the note to accrual status provided that management has determined that the performance is reasonably expected to continue. The A note will be classified as a restructured note (either performing or non-performing) through the calendar year of the restructuring that the historical payment performance has been established. Allowance for loan losses: The Company enhanced the allowance to loan losses calculation method at December 31, 2016. The enhancements precisely describe the factors used to build the allowance for loan losses estimate. The loss history now takes into account 20 quarters of gross charge-offs and recoveries whereas the previous calculation used 12 quarters. Management also applies a greater weight to the most recent quarter, declining in weight as time gets older. This allows the Bank to adjust its factors more quickly in a declining economic cycle where charge-offs are likely to increase while also allowing it to adjust its reserve when economic cycles are improving. At the same time, the longer window provides greater accuracy as to the likely charge-offs that will be incurred over time. This enhanced methodology relies more on analytical data, historical losses, and economic data, and less on subjective data that was previously used. The impact of the changes described resulted in an increase of $177 thousand at December 31, 2015 compared to the allowance calculation used at that time. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged-off against the allowance for loan losses when management believes that collectability of the principal is unlikely. The allowance for loan losses is an amount that management believes will be adequate to absorb probable incurred losses on existing loans, based on an evaluation of the collectability of loans in the portfolio and prior loss experience. This is based, in part, on an evaluation of the loss history of each type of loan over the past 20 quarters and this loss history is applied to the current outstanding loans of each respective type. This loss history analysis is updated quarterly to ensure it encompasses the most recent 20 quarter loss history. The allowance for loan losses is based on management’s evaluation of the loan portfolio giving consideration to the nature and volume of the loan portfolio, the value of underlying collateral, overall portfolio quality, review of specific problem loans, and prevailing economic conditions that may affect the borrower’s ability to pay. While management uses the best information available to make its evaluation, future adjustments to the allowance for loan losses may be necessary if there are significant changes in economic conditions. In analyzing the adequacy of the allowance for loan losses, management uses a comprehensive loan grading system to determine risk potential in the portfolio, and considers the results of periodic internal and external loan reviews. Specific reserves for impaired loans and historical loss experience factors, combined with other considerations, such as delinquency, nonaccrual status, trends on criticized and classified loans, economic conditions, concentrations of credit risk, and experience and abilities of lending personnel, are also considered in analyzing the adequacy of the allowance for loan losses. Management uses a systematic methodology, which is applied quarterly, to determine the amount of allowance for loan losses and the resultant provisions for loan losses it considers adequate to provide for probable incurred loan losses. In the event that different assumptions or conditions were to prevail, and depending upon the severity of such changes, the possibility of materially different financial condition or results of operations is a reasonable likelihood. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The general component covers non ‑ Concentrations of credit risk: The majority of the loans, commitments to extend credit, and standby letters of credit have been granted to customers in Los Alamos, Santa Fe and surrounding communities. A substantial portion of the Company’s loan portfolio includes loans that are made to businesses and individuals associated with, or employed by, the Los Alamos National Laboratory (the “Laboratory”). The ability of such borrowers to honor their contracts is predominately dependent upon the continued operation and funding of the Laboratory. Investments in securities issued by state and political subdivisions involve governmental entities within the state of New Mexico. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Standby letters of credit are granted primarily to commercial borrowers. The Company recognizes a liability in relation to unfunded commitments that is intended to represent the estimated future losses on the commitments. In calculating the amount of this liability, management considers the amount of the Company’s off-balance-sheet commitments, estimated utilization factors and loan specific risk factors. The Company’s liability for unfunded commitments is calculated quarterly and the liability is included in “other liabilities” in the consolidated balance sheets. Premises and equipment: Bank owned life insurance ("BOLI"): Other Real Estate Owned (“OREO”): Mortgage Servicing Rights (“MSRs”): The carrying amount of MSRs, and the amortization thereon, is periodically evaluated in relation to their estimated fair values. The Bank stratifies the underlying mortgage loan portfolio by certain risk characteristics, such as loan type, interest rate and maturity, for purposes of measuring impairment. The Bank estimates the fair value of each stratum by calculating the discounted present value of future net servicing income based on management’s best estimate of remaining loan lives. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular group, a reduction of the valuation allowance may be recorded as an increase to income. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual payment speeds and default rates and losses. The Bank has determined that the primary risk characteristic of MSRs is the contractual interest rate and term of the underlying mortgage loans. Fees earned for servicing rights are recorded as "mortgage loan servicing fees" in the consolidated statements of operations. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. The amortization of MSRs as well as change in any valuation allowances are recorded in “other noninterest expenses” in the consolidated statements of operations. Federal Home Loan Bank (FHLB) Stock: Federal Reserve Bank (FRB) Stock: Other intangible assets: Loan commitments and related financial instruments Prepaid expenses: Earnings (loss) per common share: Average number of shares used in calculation of basic and diluted earnings (loss) per common share are as follows for the years ended December 31, 2016, 2015 and 2014: Year ended December 31, 2016 2015 2014 (In thousands, except share and per share data) Net income (loss) $ 16,113 $ 1,914 $ (5,992 ) Dividends and discount accretion on preferred shares 4,272 3,803 3,230 Net income (loss) available to common shareholders $ 11,841 $ (1,889 ) $ (9,222 ) Weighted average common shares issued 6,939,747 6,856,800 6,856,800 LESS: Weighted average treasury stock shares (319,136 ) (373,163 ) (404,243 ) Weighted average common shares outstanding, net 6,620,611 6,483,637 6,452,557 Basic earnings (loss) per common share $ 1.79 $ (0.29 ) $ (1.43 ) Dilutive effect of stock-based compensation and conversion of Preferred C shares 313,997 - - Weighted average common shares outstanding including dilutive shares 6,934,608 6,483,637 6,452,557 Diluted earnings (loss) per common share $ 1.71 $ (0.29 ) $ (1.43 ) Certain stock options and restricted stock units were not included in the above calculation, as they would have an anti-dilutive effect as the exercise price is greater than current market prices. The total number of shares excluded was approximately 26,000 shares and 42,000 shares for years ended December 31, 2015 and 2014, respectively. Comprehensive income (loss): Transfers of financial assets: Impairment of long-lived assets: Income taxes: A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Stock-based compensation: Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Preferred stock: Fair value of financial instruments: Operating segments Reclassifications Newly Issued But Not Yet Effective Accounting Standards: ASU No. 2014 ‑ 09 Revenue from Contracts with Customers (Topic 606) ASU No. 2015-14 Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date In January 2016, the FASB issued ASU No. 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825). In February 2016, the FASB issued ASU 2016-02 Leases In March 2016, the FASB issued ASU 2016-07 Investments Equity Method and Joint Ventures In March 2016, the FASB issued ASU 2016-09 Compensation- Stock Compensation In April 2016, the FASB issued ASU 2016-10 Revenue from Contracts with Customers In May 2016, the FASB issued ASU 2016-12 Revenue from Contracts with Customers In June 2016, the FASB issued ASU 2016-13 Financial Instruments – Credit Losses In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18 Statement of Cash Flows (Topic 320) |
Restrictions on Cash and Due Fr
Restrictions on Cash and Due From Banks | 12 Months Ended |
Dec. 31, 2016 | |
Restrictions on Cash and Due From Banks [Abstract] | |
Restrictions on Cash and Due From Banks | Note 2. Restrictions on Cash and Due From Banks The Bank is required to maintain reserve balances in cash or on deposit with the FRB, based on a percentage of deposits. As of December 31, 2016, the reserve requirement on deposit at the FRB was $0 due to the large balance kept at the FRB. As of December 31, 2015, the reserve requirement on deposit at the FRB was $4.3 million. The Company maintains some of its cash in bank deposit accounts at financial institutions other than its subsidiaries that, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk on cash and cash equivalents. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investment Securities [Abstract] | |
Investment Securities | Note 3. Investment Securities Amortized cost and fair values of investment securities are summarized as follows: Securities Available for Sale: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) December 31, 2016 U.S. Government sponsored agency $ 69,306 $ 20 $ (498 ) $ 68,828 State and political subdivision 38,718 42 (1,417 ) 37,343 Residential mortgage-backed security 206,101 42 (2,324 ) 203,819 Residential collateralized mortgage obligation 14,828 77 (89 ) 14,816 Commercial mortgage backed security 117,272 57 (3,157 ) 114,172 SBA pools 681 - (9 ) 672 Totals $ 446,906 $ 238 $ (7,494 ) $ 439,650 December 31, 2015 U.S. Government sponsored agencies $ 69,798 $ 98 $ (312 ) $ 69,584 State and political subdivisions 3,429 147 - 3,576 Residential mortgage-backed security 123,055 43 (1,501 ) 121,597 Residential collateralized mortgage obligation 40,305 139 (523 ) 39,921 Commercial mortgage backed security 41,341 15 (237 ) 41,119 SBA pools 757 - (7 ) 750 Asset-backed security 40,136 - (643 ) 39,493 Totals $ 318,821 $ 442 $ (3,223 ) $ 316,040 Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) December 31, 2016 SBA pools $ 8,824 $ - $ (211 ) $ 8,613 Totals $ 8,824 $ - $ (211 ) $ 8,613 December 31, 2015 SBA pools $ 8,986 $ 2 $ - $ 8,988 Totals $ 8,986 $ 2 $ - $ 8,988 Realized net gains (losses) on sale and call of securities available for sale are summarized as follows: Year ended December 31, 2016 2015 2014 (In thousands) Proceeds $ 111,075 $ 17,184 $ 24,500 Gross realized gains 491 4 1 Gross realized losses 307 - - A summary of unrealized loss information for investment securities, categorized by security type, as of December 31, 2016 and 2015 was as follows: Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Securities Available for Sale: (In thousands) December 31, 2016 U.S. Government sponsored agencies $ 53,877 $ (498 ) $ - $ - $ 53,877 $ (498 ) State and political subdivision 33,833 (1,417 ) - - 33,833 (1,417 ) Residential mortgage-backed security 143,344 (1,539 ) 50,474 (785 ) 193,818 (2,324 ) Residential collateralized mortgage obligation 8,413 (87 ) 122 (2 ) 8,535 (89 ) Commercial mortgage backed security 96,222 (3,157 ) - - 96,222 (3,157 ) SBA pools - - 673 (9 ) 673 (9 ) Asset-backed security - - - - - - Totals $ 335,689 $ (6,698 ) $ 51,269 $ (796 ) $ 386,958 $ (7,494 ) December 31, 2015 U.S. Government sponsored agency $ 54,804 $ (312 ) $ - $ - $ 54,804 $ (312 ) Residential mortgage-backed security 54,760 (602 ) 48,752 (899 ) 103,512 (1,501 ) Residential collateralized mortgage obligation 17,237 (185 ) 16,252 (338 ) 33,489 (523 ) Commercial mortgage backed security 26,883 (237 ) - - 26,883 (237 ) SBA pools - - 742 (7 ) 742 (7 ) Asset-backed security 39,493 (643 ) - - 39,493 (643 ) Totals $ 193,177 $ (1,979 ) $ 65,746 $ (1,244 ) $ 258,923 $ (3,223 ) As of December 31, 2016 there were two held to maturity investment securities in an unrealized loss position for less than 12 months. As of December 31, 2015 there were no held to maturity investment securities in an unrealized loss position. As of December 31, 2016, the Company’s security portfolio consisted of 147 securities, 87 of which were in an unrealized loss position. As of December 31, 2016, $387.0 million in investment securities had unrealized losses with aggregate depreciation of 1.90% of the Company’s amortized cost basis. Of these securities, $51.3 million had a continuous unrealized loss position for twelve months or longer with an aggregate depreciation of 1.53%. The unrealized losses in all security categories relate principally to the general change in interest rates and illiquidity, and not credit quality, that has occurred since the securities purchase dates, and such unrecognized losses or gains will continue to vary with general interest rate level fluctuations in the future. The Company utilizes several external sources to evaluate prepayments, delinquencies, loss severity, and other factors in determining if there is impairment on an individual security. As management does not intend to sell the securities, and it is likely that it will not be required to sell the securities before their anticipated recovery, no declines are deemed to be other than temporary. The amortized cost and fair value of investment securities, as of December 31, 2016, by contractual maturity are shown below. Maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value December 31, 2016 (In thousands) One year or less $ 10,205 $ 10,204 $ - $ - One to five years 31,070 30,695 - - Five to ten years 31,249 31,189 - - Over ten years 36,181 34,755 8,824 8,613 Subtotal 108,705 106,843 8,824 8,613 Residential mortgage-backed security 206,101 203,819 - - Residential collateralized mortgage obligation 14,828 14,816 - - Commercial mortgage backed security 117,272 114,172 Total $ 446,906 $ 439,650 $ 8,824 $ 8,613 Securities with carrying amounts of $87.9 million and $91.7 million as of December 31, 2016 and 2015, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Allowance for Loan Losses [Abstract] | |
Loans and Allowances for Loan Losses | Note 4. Loans and Allowance for Loan Losses As of December 31, 2016 and 2015, loans consisted of: December 31, 2016 2015 (In thousands) Commercial $ 69,161 $ 92,995 Commercial real estate 405,900 371,599 Residential real estate 214,726 258,606 Construction real estate 75,972 89,341 Installment and other 21,053 28,730 Total loans 786,812 841,271 Unearned income (1,322 ) (1,483 ) Gross loans 785,490 839,788 Allowance for loan losses (14,352 ) (17,392 ) Net loans $ 771,138 $ 822,396 Loan Origination/Risk Management. Commercial loans: Commercial real estate loans: With respect to loans to developers and builders that are secured by non-owner occupied properties that the Company may originate from time to time, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Residential real estate loans: Construction real estate loans: Installment loans: The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures, which include periodic internal reviews and reports to identify and address risk factors developing within the loan portfolio. The Company engages external independent loan reviews that assess and validate the credit risk program on a periodic basis. Results of these reviews are presented to management and the Board of Directors. The following table presents the contractual aging of the recorded investment in current and past due loans by class of loans as of December 31, 2016 and 2015, including nonaccrual loans: Current 30-59 Days Past Due 60-89 Days Past Due Loans past due 90 days or more Total Past Due Total (In thousands) December 31, 2016 Commercial $ 67,562 $ 1,010 $ 221 $ 368 $ 1,599 $ 69,161 Commercial real estate 399,861 4,564 - 1,475 6,039 405,900 Residential real estate 208,200 3,089 1,355 2,082 6,526 214,726 Construction real estate 67,310 378 43 8,241 8,662 75,972 Installment and other 20,860 135 38 20 193 21,053 Total loans $ 763,793 $ 9,176 $ 1,657 $ 12,186 $ 23,019 $ 786,812 Nonaccrual loan classification $ 8,331 $ 249 $ 712 $ 12,186 $ 13,147 $ 21,478 December 31, 2015 Commercial $ 90,839 $ 167 $ 131 $ 1,858 $ 2,156 $ 92,995 Commercial real estate 363,495 1,526 704 5,874 8,104 371,599 Residential real estate 252,568 1,215 606 4,217 6,038 258,606 Construction real estate 80,629 291 85 8,336 8,712 89,341 Installment and other 28,534 110 12 74 196 28,730 Total loans $ 816,065 $ 3,309 $ 1,538 $ 20,359 $ 25,206 $ 841,271 Nonaccrual loan classification $ 6,202 $ 2,702 $ 1,418 $ 20,003 $ 24,123 $ 30,325 The following table presents the recorded investment in nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of December 31, 2016 and 2015: December 31, 2016 2015 Nonaccrual Loans past due 90 days or more and still accruing interest Nonaccrual Loans past due 90 days or more and still accruing interest (In thousands) Commercial $ 1,192 $ - $ 2,268 $ - Commercial real estate 5,823 - 10,737 - Residential real estate 4,247 - 7,821 - Construction real estate 10,159 - 9,353 - Installment and other 57 - 146 - Total $ 21,478 $ - $ 30,325 $ - The Company utilizes an internal asset classification system as a means of reporting problem and potential problem loans. Under the Company’s risk rating system, problem and potential problem loans are classified as “Special Mention,” “Substandard,” and “Doubtful.” Substandard loans include those characterized by the likelihood that the Company will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loans that do not currently expose the Company to sufficient risk to warrant classification in one of the aforementioned categories, but possess weaknesses that deserve management’s close attention are deemed to be Special Mention. Any time a situation warrants, the risk rating may be reviewed. Loans not meeting the criteria above that are analyzed individually are considered to be pass-rated loans. The following table presents the risk category by class of loans based on the most recent analysis performed and the contractual aging as of December 31, 2016 and 2015: Pass Special Mention Substandard Doubtful Total (In thousands) December 31, 2016 Commercial $ 56,611 $ 1,046 $ 11,504 $ - $ 69,161 Commercial real estate 380,777 11,573 13,550 - 405,900 Residential real estate 209,049 588 5,089 - 214,726 Construction real estate 60,848 5,378 9,746 - 75,972 Installment and other 20,983 4 66 - 21,053 Total $ 728,268 $ 18,589 $ 39,955 $ - $ 786,812 December 31, 2015 Commercial $ 69,221 $ 3,129 $ 20,645 $ - $ 92,995 Commercial real estate 307,700 19,512 44,387 - 371,599 Residential real estate 245,897 1,622 11,087 - 258,606 Construction real estate 71,864 6,667 10,810 - 89,341 Installment and other 28,378 2 350 - 28,730 Total $ 723,060 $ 30,932 $ 87,279 $ - $ 841,271 The following table shows all loans, including nonaccrual loans, by classification and aging, as of December 31, 2016 and 2015: Pass Special Mention Substandard Doubtful Total (In thousands) December 31, 2016 Current $ 724,075 $ 13,956 $ 25,762 $ - $ 763,793 Past due 30-59 days 3,383 4,633 1,160 - 9,176 Past due 60-89 days 810 - 847 - 1,657 Past due 90 days or more - - 12,186 - 12,186 Total $ 728,268 $ 18,589 $ 39,955 $ - $ 786,812 December 31, 2015 Current $ 719,752 $ 30,674 $ 65,639 $ - $ 816,065 Past due 30-59 days 349 258 2,702 - 3,309 Past due 60-89 days 109 - 1,429 - 1,538 Past due 90 days or more 2,850 - 17,509 - 20,359 Total $ 723,060 $ 30,932 $ 87,279 $ - $ 841,271 As of December 31, 2016, nonaccrual loans totaling $18.4 million were classified as Substandard. As of December 31, 2015, nonaccrual loans totaling $27.5 million were classified as Substandard. The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2016 and 2015, showing the unpaid principal balance, the recorded investment of the loan (reflecting any loans with partial charge-offs), and the amount of allowance for loan losses specifically allocated for these impaired loans (if any): December 31, 2016 2015 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated (In thousands) With no related allowance recorded: Commercial $ 2,203 $ 2,166 $ - $ 13,611 $ 10,137 $ - Commercial real estate 6,368 6,136 - 15,872 14,198 - Residential real estate 5,176 4,494 - 9,473 7,450 - Construction real estate 7,522 6,031 - 9,816 8,137 - Installment and other 313 313 - 433 416 - With an allowance recorded: Commercial 13,988 13,988 350 14,958 14,956 399 Commercial real estate 6,376 6,376 911 11,050 11,050 1,295 Residential real estate 8,601 8,598 1,424 10,759 10,755 2,132 Construction real estate 5,288 5,251 237 3,688 3,688 252 Installment and other 433 433 88 636 636 138 Total $ 56,268 $ 53,786 $ 3,010 $ 90,296 $ 81,423 $ 4,216 The following table presents loans individually evaluated for impairment by class of loans for the years ended December 31, 2016, 2015 and 2014, showing the average recorded investment and the interest income recognized: 2016 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Commercial $ 8,290 $ 59 $ 11,037 $ 553 $ 12,571 $ 533 Commercial real estate 10,467 17 18,376 592 29,459 369 Residential real estate 6,313 37 8,079 79 10,585 248 Construction real estate 6,786 20 8,911 196 10,685 162 Installment and other 349 15 584 65 947 81 With an allowance recorded: Commercial 14,459 764 15,437 804 15,921 832 Commercial real estate 8,919 272 14,066 468 19,791 591 Residential real estate 9,787 318 12,628 349 13,821 379 Construction real estate 4,295 179 5,321 157 6,296 210 Installment and other 546 14 690 20 835 27 Total $ 70,211 $ 1,695 $ 95,129 $ 3,283 $ 120,911 $ 3,432 If nonaccrual loans outstanding had been current in accordance with their original terms, approximately $1.1 million, $1.8 million and $3.0 million would have been recorded as loan interest income during the years ended December 31, 2016, 2015 and 2014, respectively. Interest income recognized in the above table was primarily recognized on a cash basis. Recorded investment balances in the above tables exclude accrued interest income and unearned income as such amounts were immaterial. Allowance for Loan Losses: For the years ended December 31, 2016, 2015 and 2014, activity in the allowance for loan losses was as follows: Commercial Commercial real estate Residential real estate Construction real estate Installment and other Unallocated Total (In thousands) Year Ended December 31, 2016 Beginning balance $ 2,442 $ 6,751 $ 6,082 $ 1,143 $ 940 $ 34 $ 17,392 Provision (benefit) for loan losses (3,001 ) 4,954 (180 ) (146 ) 134 39 1,800 Charge-offs (822 ) (5,834 ) (1,726 ) (21 ) (575 ) - (8,978 ) Recoveries 2,830 601 348 143 216 - 4,138 Net charge-offs 2,008 (5,233 ) (1,378 ) 122 (359 ) - (4,840 ) Ending balance $ 1,449 $ 6,472 $ 4,524 $ 1,119 $ 715 $ 73 $ 14,352 Year Ended December 31, 2015 Beginning balance $ 4,031 $ 8,339 $ 7,939 $ 3,323 $ 788 $ 363 $ 24,783 Provision (benefit) for loan losses (1,146 ) 2,635 (80 ) (1,081 ) 501 (329 ) 500 Charge-offs (1,919 ) (4,731 ) (2,297 ) (1,570 ) (642 ) - (11,159 ) Recoveries 1,476 508 520 471 293 - 3,268 Net charge-offs (443 ) (4,223 ) (1,777 ) (1,099 ) (349 ) - (7,891 ) Ending balance $ 2,442 $ 6,751 $ 6,082 $ 1,143 $ 940 $ 34 $ 17,392 Year Ended December 31, 2014 Beginning balance $ 3,958 $ 10,699 $ 8,162 $ 4,658 $ 1,199 $ (318 ) $ 28,358 Provision (benefit) for loan losses 1,516 (334 ) 1,571 (1,504 ) 70 681 2,000 Charge-offs (2,261 ) (2,772 ) (2,463 ) (285 ) (631 ) - (8,412 ) Recoveries 818 746 669 454 150 - 2,837 Net charge-offs (1,443 ) (2,026 ) (1,794 ) 169 (481 ) - (5,575 ) Ending balance $ 4,031 $ 8,339 $ 7,939 $ 3,323 $ 788 $ 363 $ 24,783 Allocation of the allowance for loan losses (as well as the total loans in each allocation method), disaggregated on the basis of the Company’s impairment methodology, is as follows: Commercial Commercial real estate Residential real estate Construction real estate Installment and other Unallocated Total December 31, 2016 (In thousands) Allowance for loan losses allocated to: Loans individually evaluated for impairment $ 350 $ 911 $ 1,424 $ 237 $ 88 $ - $ 3,010 Loans collectively evaluated for impairment 1,099 5,561 3,100 882 627 73 11,342 Ending balance $ 1,449 $ 6,472 $ 4,524 $ 1,119 $ 715 $ 73 $ 14,352 Loans: Individually evaluated for impairment $ 16,154 $ 12,512 $ 13,092 $ 11,282 $ 746 $ - $ 53,786 Collectively evaluated for impairment 53,007 393,388 201,634 64,690 20,307 - 733,026 Total ending loans balance $ 69,161 $ 405,900 $ 214,726 $ 75,972 $ 21,053 $ - $ 786,812 December 31, 2015 Allowance for loan losses allocated to: Loans individually evaluated for impairment $ 399 $ 1,295 $ 2,132 $ 252 $ 138 $ - $ 4,216 Loans collectively evaluated for impairment 2,043 5,456 3,950 891 802 34 13,176 Ending balance $ 2,442 $ 6,751 $ 6,082 $ 1,143 $ 940 $ 34 $ 17,392 Loans: Individually evaluated for impairment $ 25,093 $ 25,248 $ 18,205 $ 11,825 $ 1,052 $ - $ 81,423 Collectively evaluated for impairment 67,902 346,351 240,401 77,516 27,678 - 759,848 Total ending loans balance $ 92,995 $ 371,599 $ 258,606 $ 89,341 $ 28,730 $ - $ 841,271 In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. The evaluation is performed under the Company’s internal underwriting policy. TDRs are defined as those loans where: (1) the borrower is experiencing financial difficulties and (2) the restructuring includes a concession by the Bank to the borrower that the Bank would not otherwise consider. The following loans were restructured during the years ended December 31, 2016, 2015, and 2014: Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserves Allocated (Dollars in thousands) December 31, 2016 Commercial 1 $ 39 $ 39 $ - Construction real estate 1 62 62 - Installment and other 1 40 40 - Total 3 $ 141 $ 141 $ - December 31, 2015 Residential real estate 1 82 82 - Construction real estate 2 831 831 11 Installment and other 4 82 82 3 Total 7 $ 995 $ 995 $ 14 December 31, 2014 Commercial 3 $ 221 $ 90 $ 1 Commercial real estate 2 1,408 1,408 56 Residential real estate 6 498 493 21 Construction real estate 2 410 410 1 Installment and other 4 76 49 9 Total 17 $ 2,613 $ 2,450 $ 88 The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the years ended December 31, 2016, 2015, and 2014: Number of Contracts Recorded Investment Specific Reserves Allocated (Dollars in thousands) TDRs that subsequently defaulted: 2016 Construction real estate 1 $ 62 $ - Total 1 $ 62 $ - TDRs that subsequently defaulted: 2015 Construction real estate 2 $ 831 $ 11 Total 2 $ 831 $ 11 TDRs that subsequently defaulted: 2014 Residential real estate 1 $ 168 $ - Total 1 $ 168 $ - The following table presents total TDRs, both in accrual and nonaccrual status, as of December 31, 2016, 2015, and 2014: December 31, 2016 2015 2014 Number of Contracts Amount Number of Contracts Amount Number of Contracts Amount (Dollars in thousands) Accrual 127 $ 35,158 165 $ 53,862 188 $ 60,973 Nonaccrual 23 7,909 32 10,641 61 27,394 Total TDRs 150 $ 43,067 197 $ 64,503 249 $ 88,367 As of December 31, 2016, the Bank had a total of $1.6 million in commitments to lend additional funds on six commercial loans classified as TDRs. Impairment analyses are prepared on TDRs in conjunction with the normal allowance for loan loss process. TDRs required a specific reserve of $0, $14 thousand, and $88 thousand which was included in the allowance for loan losses at the years ended December 31, 2016, 2015, and 2014, respectively. TDRs resulted in charge-offs of $2.0 million, $2.8 million, and $2.8 million during the years ended December 31, 2016, 2015, and 2014, respectively. The TDRs that subsequently defaulted required a provision of $0, $11 thousand, and $0 to the allowance for loan losses for the years ended December 31, 2016, 2015, and 2014 respectively. Loans to Executive Officers and Directors: Loan principal balances to executive officers and directors of the Company were $347.8 thousand and $1.9 million as of December 31, 2016 and 2015, respectively. Total credit available, including companies in which these individuals have management control or beneficial ownership, was $513.6 thousand and $2.3 million as of December 31, 2016 and 2015, respectively. An analysis of the activity related to these loans as of December 31, 2016 and 2015 is as follows: December 31, 2016 2015 (In thousands) Balance, beginning $ 1,933 $ 1,322 Additions 158 438 Changes in composition (648 ) 800 Principal payments and other reductions (1,095 ) (627 ) Balance, ending $ 348 $ 1,933 |
Loan Servicing and Mortgage Ser
Loan Servicing and Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2016 | |
Loan Servicing and Mortgage Servicing Rights [Abstract] | |
Loan Servicing and Mortgage Servicing Rights | Note 5. Loan Servicing and Mortgage Servicing Rights Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid balance of these loans as of December 31, 2016 and 2015 is summarized as follows: December 31, 2016 2015 (In thousands) Mortgage loan portfolios serviced for: Federal National Mortgage Association ("Fannie Mae") $ 780,348 $ 865,568 Other investors - 16 Totals $ 780,348 $ 865,584 During the years ended December 31, 2016, 2015 and 2014, substantially all of the loans serviced for others had a contractual servicing fee of 0.25% on the unpaid principal balance. These fees are recorded as “mortgage loan servicing fees” under “noninterest income” on the consolidated statements of operations. Late fees on the loans serviced for others totaled $53 thousand, $182 thousand and $191 thousand during the years ended December 31, 2016, 2015 and 2014, respectively. These fees are included in “noninterest income” on the consolidated statements of operations. Custodial balances on deposit at the Bank in connection with the foregoing loan servicing were approximately $4.8 million and $6.1 million as of December 31, 2016 and 2015, respectively. There were no custodial balances on deposit with other financial institutions as of December 31, 2016 and 2015. An analysis of changes in the MSR asset for the years ended December 31, 2016, 2015 and 2014 follows: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at beginning of period $ 8,777 $ 9,470 $ 10,336 Servicing rights originated and capitalized 581 822 810 Amortization (1,455 ) (1,515 ) (1,676 ) Balance at end of period $ 7,903 $ 8,777 $ 9,470 Below is an analysis of changes in the MSR asset valuation allowance for the years ended December 31, 2016, 2015 and 2014: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at beginning of period $ (1,895 ) $ (2,017 ) $ (2,021 ) Aggregate reduction credited to operations 2,557 2,644 1,373 Aggregate additions charged to operations (1,660 ) (2,522 ) (1,369 ) Balance at end of period $ (998 ) $ (1,895 ) $ (2,017 ) The fair values of the MSRs were $6.9 million, $6.9 million and $7.5 million for the years ended December 31, 2016, 2015 and 2014, respectively. A valuation allowance is used to recognize impairments of MSRs. An MSR is considered impaired when the fair value of the MSR is below the amortized book value of the MSR. MSRs are accounted for by risk tranche, with the interest rate and term of the underlying loan being the primary strata used in distinguishing the tranches. Each tranche is evaluated separately for impairment. The following assumptions were used to calculate the fair value of the MSRs as of December 31, 2016, 2015 and 2014: December 31, 2016 2015 2014 Weighted Average Public Securities Association (PSA) speed 193.93 % 213.25 % 201.67 % Weighted Average Discount rate 10.50 % 10.50 % 10.50 % Weighted Average Earnings rate 1.97 % 1.73 % 1.77 % |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2016 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | Note 6. Other Real Estate Owned OREO consists of property acquired due to foreclosure on real estate loans. As of December 31, 2016 and 2015, total OREO consisted of: 2016 2015 (In thousands) Commercial real estate $ 2,181 $ 781 Residential real estate 2,734 3,024 Construction real estate 3,521 4,541 Total $ 8,436 $ 8,346 The following table presents a summary of OREO activity for the years ended December 31, 2016 and 2015: 2016 2015 (In thousands) Balance at beginning of period $ 8,346 $ 13,980 Transfers in at fair value 5,187 3,958 Write-down of value (91 ) (506 ) Gain (loss) on disposal 1,699 749 Cash received upon disposition (5,157 ) (7,989 ) Sales financed by loans (1,548 ) (1,846 ) Balance at end of period $ 8,436 $ 8,346 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Note 7. Premises and Equipment As of December 31, 2016 and 2015, premises and equipment consisted of: December 31, 2016 2015 (In thousands) Land and land improvements $ 4,822 $ 3,820 Buildings 26,870 23,166 Furniture and equipment 19,067 31,846 Total 50,760 58,832 Accumulated depreciation (24,800 ) (35,459 ) Total less depreciation $ 25,959 $ 23,373 Depreciation on premises and equipment was $1.4 million, $1.7 million and $2.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | Note 8. Deposits As of December 31, 2016 and 2015, deposits consisted of: December 31, 2016 2015 (In thousands) Demand deposits, noninterest bearing $ 28,301 $ 75,867 NOW and money market accounts 558,941 511,423 Savings deposits 407,606 380,045 Time certificates, $250,000 or more 28,531 39,148 Other time certificates 191,710 247,475 Total $ 1,215,089 $ 1,253,958 As of December 31, 2016, the scheduled maturities of time certificates were as follows: (In thousands) 2017 $ 172,435 2018 24,319 2019 7,435 2020 4,464 2021 5,658 Thereafter 5,930 Total $ 220,241 Deposits from executive officers, directors and their affiliates as of December 31, 2016 and 2015 were $1.6 million and $1.1 million, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Borrowings [Abstract] | |
Borrowings | Note 9. Borrowings Notes payable to the FHLB as of December 31, 2016 and 2015 were secured by a blanket assignment of mortgage loans or other collateral acceptable to FHLB, and generally had a fixed rate of interest, interest payable monthly and principal due at end of term, unless otherwise noted. As of December 31, 2016, $537.7 thousand in loans were pledged under the blanket assignment. Investment securities are held in safekeeping at the FHLB with $2.3 million pledged as collateral for outstanding advances. An additional $100.6 million in advances is available based on the current value of the remaining unpledged investment securities. In the event that short-term liquidity is needed, we have established relationships with several large regional banks to provide short-term borrowings in the form of federal funds purchase. We have the ability to borrow $20 million for a short period (15 to 60 days) from these banks on a collective basis. The following table details borrowings as of December 31, 2016 and 2015. Maturity Date Rate Type Principal due 2016 2015 (In thousands) April 27, 2021 6.343 % Fixed At maturity 2,300 2,300 Total $ 2,300 $ 2,300 |
Junior Subordinated Debt
Junior Subordinated Debt | 12 Months Ended |
Dec. 31, 2016 | |
Junior Subordinated Debt [Abstract] | |
Junior Subordinated Debt | Note 10. Junior Subordinated Debt The following table presents details on the junior subordinated debt as of December 31, 2016: Trust I Trust III Trust IV Trust V (Dollars in thousands) Date of Issue March 23, 2000 May 11, 2004 June 29, 2005 September 21, 2006 Amount of trust preferred securities issued $ 10,000 $ 6,000 $ 10,000 $ 10,000 Rate on trust preferred securities 10.875 % 3.6307% (variable) 6.88 % 2.6134% (variable) Maturity March 8, 2030 September 8, 2034 November 23, 2035 December 15, 2036 Date of first redemption March 8, 2010 September 8, 2009 August 23, 2010 September 15, 2011 Common equity securities issued $ 310 $ 186 $ 310 $ 310 Junior subordinated deferrable interest debentures owed $ 10,310 $ 6,186 $ 10,310 $ 10,310 Rate on junior subordinated deferrable interest debentures 10.875 % 3.6307% (variable) 6.88 % 2.6134% (variable) On the dates of issue indicated above, the Trusts, being Delaware statutory business trusts, issued trust preferred securities (the “trust preferred securities”) in the amount and at the rate indicated above. These securities represent preferred beneficial interests in the assets of the Trusts. The trust preferred securities will mature on the dates indicated, and are redeemable in whole or in part at the option of Trinity, with the approval of the FRB. The Trusts also issued common equity securities to Trinity in the amounts indicated above. The Trusts used the proceeds of the offering of the trust preferred securities to purchase junior subordinated deferrable interest debentures (the “debentures”) issued by Trinity, which have terms substantially similar to the trust preferred securities. Trinity has the right to defer payments of interest on the debentures at any time or from time to time for a period of up to ten consecutive semi-annual periods (or twenty consecutive quarterly periods in the case of Trusts with quarterly interest payments) with respect to each interest payment deferred. During a period of deferral, unpaid accrued interest is compounded. Under the terms of the debentures, under certain circumstances of default or if Trinity has elected to defer interest on the debentures, Trinity may not, with certain exceptions, declare or pay any dividends or distributions on its common stock or purchase or acquire any of its common stock. In the second quarter of 2013, Trinity began to defer the interest payments on $37.1 million of junior subordinated debentures that are held by the Trusts that it controls. Interest accrued and unpaid to securities holders total $9.8 million and $6.9 million as of December 31, 2016 and 2015, respectively. In the first quarter of 2017 all deferred interest was paid in full and the Company is no longer deferring interest payments on the junior subordinated debentures. See Note 22, "Subsequent Events." As of December 31, 2016 and 2015, the Company’s trust preferred securities, subject to certain limitations, qualified as Tier 1 Capital for regulatory capital purposes. Payments of distributions on the trust preferred securities and payments on redemption of the trust preferred securities are guaranteed by Trinity. Trinity also entered into an agreement as to expenses and liabilities with the Trusts pursuant to which it agreed, on a subordinated basis, to pay any costs, expenses or liabilities of the Trusts other than those arising under the trust preferred securities. The obligations of Trinity under the junior subordinated debentures, the related indenture, the trust agreement establishing the Trusts, the guarantee and the agreement as to expenses and liabilities, in the aggregate, constitute a full and unconditional guarantee by Trinity of the Trusts’ obligations under the trust preferred securities. |
Description of Leasing Arrangem
Description of Leasing Arrangements | 12 Months Ended |
Dec. 31, 2016 | |
Description of Leasing Arrangements [Abstract] | |
Description of Leasing Arrangements | Note 11. Description of Leasing Arrangements The Company is leasing land in Santa Fe on which it built a bank office as well as the vacant land adjacent to the office. The construction of the office was completed in 2009. The original terms of the leases expired in May 2014 and are currently month-to-month. The leases contain both an option to extend for additional five year terms and an option to purchase the land at a set price. Trinity was required to notify the landlord of its intent to exercise the options to purchase between December 1, 2014 and December 1, 2015 for the land on which the bank built its office and between May 1, 2014 and December 1, 2015 for the adjacent land. Trinity formally notified the landlord of its exercise of the options to purchase under the leases on April 24, 2015 and expects to complete the exercise or extend the lease in 2017. This lease is classified as a capital lease. The Company also holds two notes and mortgages on the land, and the interest payments received on the notes are approximately equal to the rental payments on the leases; and the principal due at maturity or upon transfer of the land, will largely offset the option purchase prices. Operating lease payments for the years ended December 31, 2016, 2015 and 2014 totaled $241 thousand, $272 thousand and $356 thousand, respectively. There were no lease payments under capital lease for 2016. Commitments for minimum future rentals under operating leases were as follows as of December 31, 2016: Lease Payments under Operating Leases Year (In thousands) 2017 $ 122 2018 5 2019 5 2020 2 Thereafter - Total $ 134 |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2016 | |
Retirement Plans [Abstract] | |
Retirement Plans | Note 12. Retirement Plans The Company has an ESOP for the benefit of all employees who are at least 18 years of age and have completed 1,000 hours of service during the plan year. The employee’s interest in the ESOP vests over a period of six years. The ESOP was established in January 1989 and is a defined contribution plan subject to the requirements of the Employee Retirement Income Security Act of 1974. The ESOP is funded by discretionary contributions by the Company as determined by its Board of Directors. No expenses were recorded in 2016, 2015, or 2014. All shares held by the ESOP, acquired prior to the issuance of ASC 718-40, "Compensation—Stock Compensation-Employee Stock Ownership Plans” Shares of the Company held by the ESOP are as follows: December 31, 2016 2015 Shares acquired before December 31, 1992 215,147 215,369 Shares acquired after December 31, 1992 456,815 457,254 Total shares 671,962 672,623 There was no compensation expense recognized for ESOP shares acquired prior to December 31, 1992 during the years ended December 31, 2016, 2015 and 2014. Under federal income tax regulations, the employer securities that are held by the Plan and its participants and that are not readily tradable on an established market or that are subject to trading limitations include a put option (liquidity put). The liquidity put is a right to demand that the Company buy shares of its stock held by the participant for which there is no readily available market. The put price is representative of the fair value of the stock. The Company may pay the purchase price over a five-year period. The purpose of the liquidity put is to ensure that the participant has the ability to ultimately obtain cash. The fair value of the allocated shares subject to repurchase was $3.2 million and $2.7 million as of December 31, 2016 and 2015, respectively. The Company’s employees may also participate in a tax-deferred savings plan (401(k)) to which the Company does not contribute. |
Stock Incentives
Stock Incentives | 12 Months Ended |
Dec. 31, 2016 | |
Stock Incentives [Abstract] | |
Stock Incentives | Note 13. Stock Incentives The Trinity Capital Corporation 1998 Stock Option Plan (“1998 Plan”) and Trinity Capital Corporation 2005 Stock Incentive Plan (“2005 Plan”) were created for the benefit of key management and select employees. Under the 1998 Plan, 400,000 shares (as adjusted for the stock split on December 19, 2002) from shares held in treasury or authorized but unissued common stock were reserved for granting options. No further awards may be granted under the 1998 Plan. Under the 2005 Plan, 500,000 shares from shares held in treasury or authorized but unissued common stock were reserved for granting stock-based incentive awards. No further awards may be granted under the 2005 Plan. Both of these plans were approved by the Company’s stockholders. The Compensation Committee determines the terms and conditions of the awards. At the Shareholder Meeting held on January 22, 2015, the Company’s stockholders approved the Trinity Capital Corporation 2015 Long-Term Incentive Plan (“2015 Plan”). Under the 2015 Plan, 500,000 shares from shares held in treasury or authorized but unissued common stock are reserved for granting stock-based incentive awards. There were 50,228 awards issued under the 2015 Plan in 2016. Because share-based compensation awards vesting in the current periods were granted on a variety of dates, the assumptions are presented as weighted averages in those assumptions. There was no stock option activity as of December 31, 2016. A summary of restricted stock unit (“RSU”) activity under the 1998 Plan, the 2005 Plan, and the 2015 Plan as of December 31, 2016 is presented below: Shares Weighted-Average Grant Price Weighted-Average Remaining Contractual Term, in years Aggregate Intrinsic Value (in thousands) RSUs Outstanding as of January 1, 2016 11,765 4.25 0.50 50 Granted 50,228 4.00 3.00 201 Exercised (11,765 ) 4.25 - 50 Forfeited or expired - - - - Outstanding as of December 31, 2016 50,228 $ 4.00 2.15 $ 201 Vested as of December 31, 2016 - $ - - $ - There were 11,765 restricted stock units exercised in 2016. No restricted stock units were exercised in 2015 or 2014. As of December 31, 2016, there was $145 thousand in unrecognized compensation cost related to unvested share-based compensation awards granted under the 2015 Plan. The cost will be recognized over the remaining vesting period. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 14. Income Taxes The current and deferred components of the provision (benefit) for income taxes for the years ended December 31, 2016, 2015 and 2014 are as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Current provision (benefit) for income taxes Federal $ - $ - $ - State - - - Deferred provision (benefit) for income taxes Federal 772 (188 ) (1,621 ) State 375 242 (206 ) Change in valuation allowance (14,823 ) (54 ) 2,997 Total provision (benefit) for income taxes $ (13,676 ) $ - $ 1,170 A deferred tax asset or liability is recognized to reflect the net tax effects of temporary differences between the carrying amounts of existing assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. Temporary differences that gave rise to the deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows: 2016 2015 Asset Liability Asset Liability (In thousands) Unrealized loss on securities available for sale $ 2,870 $ - $ 1,109 $ - Stock dividends on FHLB stock - 5 - 3 Venture capital investments 823 - 835 - Allowance for loan losses 5,904 - 7,106 - Premises and equipment - 1,252 - 1,273 MSRs - 2,731 - 2,722 Other intangible assets 256 - 377 - OREO 755 - 1,349 - Prepaid expenses - 756 - 636 Accrued compensation 310 - 566 - Capital losses 387 - 372 - Net operating loss carryforwards 6,010 - 4,687 - Business tax credits 2,827 - 2,827 - Stock options and SARs expensed 22 - 237 - Contributions and Other 231 - 206 - AMT credit 173 - 173 - Total deferred taxes 20,568 4,744 19,844 4,634 Allowance for deferred taxes (387 ) - (19,844 ) (4,634 ) Net deferred taxes $ 20,181 $ 4,744 $ - $ - A valuation allowance is established when it is more likely than not that all or a portion of a net deferred tax asset will not be realized. The Company recorded a loss before income taxes for the years ended December 31, 2011 and 2010. Based on these losses, the Company determined that it was no longer more likely than not that its deferred tax assets of $14.6 million at December 31, 2011 would be utilized. Accordingly, a full valuation allowance was recorded as of December 31, 2011. As of December 31, 2016, management's analysis determined that it was more likely than not that the amount of the deferred tax assets would be utilized in future periods for all but the capital losses therefore $14.8 million of the previously recorded valuation allowance was reversed leaving $387 thousand in valuation allowance at December 31, 2016. The positive evidence used in evaluating the reversal of the valuation allowance were: 1) positive income before income taxes in 8 of the 12 quarters from January 2014 to December 2016, 2) positive year to date income before income taxes at December 31, 2016, 3) successful capital rise completed in December 2016, and 4) reasonable and supportable forecasts for future earnings. The negative evidence used in evaluating the reversal of the valuation allowance were: 1) the Company has experienced losses due to the restatement of the Company's financials and from expenses stemming from the resulting SEC and OCC investigations, 2) the Company incurred significant expenses in building the infrastructure and controls necessary to support the Company, and 3) the Company's major earning assets have continued to decline in 2016. Based on the evaluation, management concluded the available positive evidence outweighed the negative evidence. For the year ended December 31, 2016, the Company had federal net operating loss carryforwards of $15.4 million and state net operating loss carryforwards of $13.9 million which will expire at various dates from 2031 to 2035. Realization of deferred tax assets associated with the net operating loss carryforwards is dependent upon generating sufficient taxable income prior to their expiration. The Company has federal business tax credit carry-forwards totaling $2.4 million as of December 31, 2016 and 2015, which will begin to expire in 2031, and $173 thousand of alternative minimum tax (AMT) carry-forwards that do not expire. The Company has state tax credit carry-forwards of $427 thousand which will begin to expire in 2018. Items causing differences between the Federal statutory tax rate and the effective tax rate are summarized as follows: Year Ended December 31, 2016 2015 2014 Amount Rate Amount Rate Amount Rate (Dollars in thousands) Federal statutory tax rate $ 828 33.98 % $ 651 34.00 % (1,688 ) (35.00 )% Net tax exempt interest income (218 ) (8.95 )% (64 ) (3.34 )% (158 ) (3.28 )% Interest disallowance 3 0.12 % 1 0.05 % 3 0.06 % Nondeductible expenses 27 1.11 % 13 0.68 % 32 0.66 % Nondeductible book amortization - 0.00 % 107 5.59 % 156 3.24 % Other, net - 0.00 % - 0.00 % (90 ) (1.87 )% Tax credits - 0.00 % (424 ) (22.15 )% (424 ) (8.79 )% Provision to return adjustments 176 7.22 % (445 ) (23.25 )% - 0.00 % Fed rate differential 24 0.98 % 20 1.04 % - 0.00 % Change in state tax rate - 0.00 % 114 5.96 % - 0.00 % Increase in cash surrender value of life insurance (67 ) -2.75 % - 0.00 % - 0.00 % Fines & penalties - 0.00 % - 0.00 % 525 10.89 % State income tax, net of federal benefit 374 15.35 % 81 4.23 % (183 ) (3.80 )% Tax provision (benefit) before change in valuation allowance 1,147 47.07 % 54 2.82 % (1,827 ) (64.26 )% Change in valuation allowance (14,823 ) (608.25 )% (54 ) (2.82 )% 2,997 62.15 % Provision (benefit) for income taxes $ (13,676 ) (561.18 )% $ - 0.00 % $ 1,170 (2.11 )% The calculation for the income tax provision or benefit generally does not consider the tax effects of changes in other comprehensive income (“OCI”), which is a component of stockholders’ equity on the balance sheet. However, an exception is provided in certain circumstances, such as when there is a full valuation allowance on net deferred tax assets, a loss before provision (benefit) for income taxes and income in other components of the financial statements. In such a case, pre-tax income from other categories, such as changes in OCI, must be considered in determining a tax benefit to be allocated to the loss before provision (benefit) for income taxes. The Company has no liabilities associated with uncertain tax positions as of December 31, 2016 and 2015 and does not anticipate providing an income tax reserve in the next twelve months. During the years ended December 31, 2016 and 2015, the Company did not record an accrual for interest and penalties associated with uncertain tax positions. The Company is subject to U.S. federal and New Mexico income taxes. The Company's federal and state income tax returns are subject to examination by the taxing authorities for years after 2012. Under Section 382 of the Code (“Section 382”), and based on the Company’s analysis, we believe that the Company experienced an “ownership change” (generally defined as a greater than 50% change (by value) in our equity ownership over a three-year period) on December 19, 2016, and our ability to use our pre-change of control NOLs and other pre-change tax attributes against our post-change income is limited. The Section 382 limitation is applied annually so as to limit the use of our pre-change NOLs to an amount that generally equals the value of our stock immediately before the ownership change multiplied by a designated federal long-term tax-exempt rate. Due to applicable limitations under Section 382, a portion of these NOLs are limited; however, we do not believe that any NOLs will expire unused. We believe that the total available and utilizable NOL carry forward at December 31, 2016 is approximately $15.4 million. These NOLs will begin to expire in 2031. The Company’s ability to utilize the NOLs or realize any benefit related to the NOLs is subject to a number of risks. Please see Part I, Item 1A “Risk Factors” for more information. |
Commitments and Off-Balance She
Commitments and Off-Balance Sheet Activities | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Off-Balance Sheet Activities [Abstract] | |
Commitments and Off-Balance Sheet Activities | Note 15. Commitments and Off-Balance-Sheet Activities Credit-related financial instruments: The Company’s exposure to credit loss is represented by the contractual amount of these credit-related commitments. The Company follows the same credit policies in making credit-related commitments as it does for on-balance-sheet instruments. As of December 31, 2016 and 2015, the following credit-related commitments were outstanding: Contract Amount 2016 2015 (In thousands) Unfunded commitments under lines of credit $ 118,252 $ 108,966 Commercial and standby letters of credit 7,152 7,608 Commitments to make loans 5,835 5,105 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 payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary by the Bank, is based on management’s credit evaluation of the customer. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. Overdraft protection agreements are uncollateralized, but most other unfunded commitments have collateral. These unfunded lines of credit usually do not contain a specified maturity date and may not necessarily be drawn upon to the total extent to which the Bank is committed. Commitments to make loans are generally made for periods of 90 days or less. The Company had outstanding loan commitments, excluding undisbursed portion of loans in process and equity lines of credit, of approximately $125.4 million as of December 31, 2016 and $116.6 million as of 2015, respectively. Of these commitments outstanding, the breakdown between fixed rate and adjustable rate loans is as follows: December 31, 2016 2015 (In thousands) Fixed rate $ 19,663 $ 11,913 Adjustable rate 105,741 104,661 Total $ 125,404 $ 116,574 The fixed rate loan commitments have interest rates ranging from 2.3 % to 14.8 % and maturities ranging from on demand to 10 years. Outstanding Letters of Credit: Commercial and standby letters of credit are conditional credit-related commitments issued by the Bank to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is the same as that involved in extending loans to customers. The Bank generally holds collateral supporting those credit-related commitments, if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Bank would be required to fund the credit-related commitment. The maximum potential amount of future payments the Bank could be required to make is represented by the contractual amount shown in the summary above. If the credit-related commitment is funded, the Bank would be entitled to seek recovery from the customer. As of both December 31, 2016 and 2015, $575 thousand has been recorded as liabilities for the Company’s potential losses under these credit-related commitments. The fair value of these credit-related commitments is approximately equal to the fees collected when granting these letters of credit. These fees collected were $26 thousand and $20 thousand as of December 31, 2016 and 2015, respectively, and are included in “other liabilities” on the consolidated balance sheets. |
Preferred Equity Issues
Preferred Equity Issues | 12 Months Ended |
Dec. 31, 2016 | |
Preferred Equity Issues [Abstract] | |
Preferred Equity Issues | Note 16. Preferred Equity Issues On March 27, 2009, the Company issued two series of preferred stock to the U.S. Department of the Treasury (“Treasury”) under the TARP Capital Purchase Program (“CPP”). On December 19, 2016, the Company issued 82,862 shares of Series C Convertible Preferred Stock pursuant to a private placement. Below is a table disclosing the information on the three series as of December 31, 2016: Number of shares issued Dividend rate Liquidation value per share Original cost, in thousands Series A cumulative perpetual preferred shares 35,539 5% for first 5 years; thereafter 9% $ 1,000.00 $ 33,437 Series B cumulative perpetual preferred shares 1,777 9 % 1,000.00 2,102 Series C cumulative perpetual convertible preferred shares 82,862 - 475.00 39,359 The difference between the liquidation value of the preferred stock and the original cost is accreted (for the Series B Preferred Stock) or amortized (for the Series A Preferred Stock) over 10 years and is reflected, on a net basis, as an increase to the carrying value of preferred stock and decrease to retained earnings. For each of the years ended December 31, 2016 and 2015, a net amount of $178 thousand was recorded for amortization. Dividends and discount accretion on preferred stock reduce the amount of net income available to common shareholders. For each of the years ended December 31, 2016 and 2015 the total of these amounts was $4.3 million and $3.8 million, respectively. Private Placement to Certain Institutional and Accredited Investors On December 19, 2016, the Company closed its previously announced $52 million private placement with Castle Creek Capital Partners VI, L.P. ("Castle Creek"), Patriot Financial Partners II, L.P., Patriot Financial Partners Parallel II, L.P. (collectively, "Patriot") and Strategic Value Bank Partners, L.P., through its fund Strategic Value Investors LP, pursuant to which the Company issued 2,661,239 shares of its common stock, no par value per share, at $4.75 per share, and 82,862 shares of a new series of convertible perpetual non-voting preferred stock, Series C, no par value per share, at $475.00 per share ("Series C Preferred Stock"). The Company used a portion of the net proceeds from the private placement to repurchase its outstanding Series A Preferred Stock (as defined below) and Series B Preferred Stock (as defined below), which it completed on January 25, 2017, and use the remaining net proceeds to pay the deferred interest on its trust preferred securities, and for general corporate purposes. In connection with the private placement and in accordance with the terms of a stock purchase agreement, dated September 9, 2016 (the "Stock Purchase Agreement"), the Company entered into a registration rights agreement (the "Registration Rights Agreement") with each of Castle Creek and Patriot. Pursuant to the terms of the Registration Rights Agreement, the Company has agreed to file a resale registration statement for the purpose of registering the resale of the shares of the Common Stock and Series C Preferred Stock issued in the private placement and the underlying shares of Common Stock or non-voting Common Stock into which the shares of Series C Preferred Stock are convertible, as appropriate. The Company is obligated to file the registration statement no later than the third anniversary after the closing of the private placement. Pursuant to the terms of the Stock Purchase Agreement, Castle Creek and Patriot entered into side letter agreements with us. Under the terms of the side letter agreements, each of Castle Creek and Patriot is entitled to have one representative appointed to our Board of Directors for so long as such investor, together with its respective affiliates, owns, in the aggregate, 5% or more of all of our outstanding shares of common stock (including shares of common stock issuable upon conversion of the Series C Preferred Stock or non-voting common stock). Redemption of Series A Preferred Stock and Series B Preferred Stock On March 27, 2009, Trinity participated in the TARP Capital Purchase Program by issuing 35,539 shares of Trinity's Fixed Rate Cumulative Perpetual Preferred Stock, Series A Preferred Stock to the Treasury for a purchase price of $35.5 million in cash and issued warrants that were immediately exercised by the Treasury for 1,777 shares of Trinity's Fixed Rate Cumulative Perpetual Preferred Stock, Series B Preferred Stock. Using part of the proceeds from the private placement described above, the Company redeemed all of its outstanding Series A Preferred Stock and Series B Preferred Stock effective January 25, 2017. Conversion of Series C Preferred Stock to Non-Voting Common Stock At December 31, 2016, the Company had outstanding 82,862 shares of Series C Preferred Stock that were issued in connection with the private placement. Following shareholder approval of an amendment to the Company's articles of incorporation to authorize a class of non-voting common stock, and the subsequent filing of such amendment with the New Mexico Secretary of State, all outstanding shares of Series C Preferred Stock were automatically converted into 8,286,200 shares of non-voting common stock at a conversion price of $4.75 per share of non-voting common stock pursuant to the private placement. This conversion was completed on February 2, 2017. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2016 | |
Litigation [Abstract] | |
Litigation | Note 17. Litigation The Company and its subsidiaries are subject, in the normal course of business, to various pending and threatened legal proceedings in which claims for monetary damages are asserted. On an ongoing basis management, after consultation with legal counsel, assesses the Company’s liabilities and contingencies in connection with such legal proceedings. For those matters where it is probable that the Company will incur losses and the amounts of the losses can be reasonably estimated, the Company records an expense and corresponding liability in its consolidated financial statements. To the extent the pending or threatened litigation could result in exposure in excess of that liability, the amount of such excess is not currently estimable. The Company can give no assurance, however, its business, financial condition and results of operations will not be materially adversely affected, or that it will not be required to materially change its business practices, based on: (i) future enactment of new banking or other laws or regulations; (ii) the interpretation or application of existing laws or regulations, including the laws and regulations as they may relate to the Company’s business, banking services or the financial services industry in general; (iii) pending or future federal or state governmental investigations of the business; (iv) institution of government enforcement actions against the Company; or (v) adverse developments in other pending or future legal proceedings against the Company or affecting the banking or financial services industry generally. In addition to legal proceedings occurring in the normal course of business, the Company is the subject of certain governmental investigations and legal proceedings as set forth below. SEC Investigation: SIGTARP/DOJ Investigation: As of March 9, 2017, no suit or charges have been filed against the Company or its current directors, executive officers or employees by any parties relating to the restatement. While there is a reasonable probability that some loss will be experienced, through litigation or assessments, other than as disclosed above, the potential loss cannot be quantified. The Company has not accrued a reserve for any potential losses resulting from unresolved regulatory investigations. Insurance Coverage and Indemnification Litigation: ● Trinity Capital Corporation and Los Alamos National Bank v. Atlantic Specialty Insurance Company, Federal Insurance Company, William C. Enloe and Jill Cook, (First Judicial District Court, State of New Mexico, Case No. D-132-CV-201500083); ● William C. Enloe v. Atlantic Specialty Insurance Company, Federal Insurance Company, Trinity Capital Corporation and Los Alamos National Bank, (First Judicial District Court, State of New Mexico, Case No. D-132-CV-201500082); and ● Mark Pierce v. Atlantic Specialty Insurance Company, Trinity Capitol Corporation d/b/a Los Alamos National Bank, and Federal Insurance Company, (First Judicial District Court, State of New Mexico, Case No. D-101-CV-201502381). In connection with the restatements and investigations, on September 1, 2015, the Company and William Enloe (“Enloe”), Trinity and the Bank’s former Chief Executive Officer and Chairman of the Board, filed separate suits in New Mexico State Court. Jill Cook, the Company’s former Chief Credit Officer, was also named in the suit brought by Trinity. On October 28, 2015, the Court entered an order consolidating the Enloe and Trinity suits. Mark Pierce, the Bank’s former Senior Lending Officer, filed suit in New Mexico State Court on November 2, 2015. On April 26, 2016, Pierce filed a motion to consolidate his suit with the Enloe and Trinity suit. In each of the three suits listed above, the plaintiffs seek coverage and reimbursement from the insurance carriers for the defense costs incurred by individuals covered under those policies, as defined therein, in addition to causes of action against the insurance companies for bad faith, breach of insurance contracts and against Atlantic Specialty Insurance for violations of New Mexico insurance statutes. The suits, with the exception of Enloe’s suit, also seek a determination on the obligations of the Company and/or the Bank to indemnify the former officers. The suits filed by Enloe and Pierce each allege, in the alternative, negligence against the Company and the Bank for failing to timely put all carriers on notice of his claims. The Company and the Bank will vigorously defend its actions and seek indemnification and coverage from its insurance carriers as required under the insurance policies. Due to the complex nature, the outcome and timing of ultimate resolution is inherently difficult to predict. Title Insurance Coverage Litigation: First American Title v. Los Alamos National Bank (Second Judicial District Court, State of New Mexico, Case No. D-202-CV-201207023 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note 18. Derivative Financial Instruments In the normal course of business, the Bank uses a variety of financial instruments to service the financial needs of customers and to reduce its exposure to fluctuations in interest rates. Derivative instruments that the Bank used as part of its interest rate risk management strategy include mandatory forward delivery commitments and rate lock commitments. As a result of using derivative instruments, the Bank has potential exposure to credit loss in the event of non-performance by the counterparties. The Bank manages this credit risk by spreading the credit risk among counterparties that the Company believes are well established and financially strong and by placing contractual limits on the amount of unsecured credit risk from any single counterparty. The Bank’s exposure to credit risk in the event of default by a counterparty is the current cost of replacing the contracts net of any available margins retained by the Bank. However, if the borrower defaults on the commitment the Bank requires the borrower to cover these costs. The Company originates single-family residential loans for sale pursuant to programs offered by Fannie Mae. At the time the interest rate is locked in by the borrower, the Bank concurrently enters into a forward loan sale agreement with respect to the sale of such loan at a set price in an effort to manage the interest rate risk inherent in the locked loan commitment. Any change in the fair value of the loan commitment after the borrower locks in the interest rate is substantially offset by the corresponding change in the fair value of the forward loan sale agreement related to such loan. This change is recorded to “other noninterest expenses” in the consolidated statements of operations. The period from the time the borrower locks in the interest rate to the time the Bank funds the loan and sells it to Fannie Mae is generally 60 days. The fair value of each instrument will rise or fall in response to changes in market interest rates subsequent to the dates the interest rate locks and forward loan sale agreements are entered into. In the event that interest rates rise after the Bank enters into an interest rate lock, the fair value of the loan commitment will decline. However, the fair value of the forward loan sale agreement related to such loan commitment generally increases by substantially the same amount, effectively eliminating the Company’s interest rate and price risk. In October 2016, the Company moved to an outsource solution whereby the Bank generates residential mortgage applications for non-affiliated residential mortgage companies on a fee basis. Due to this change in strategy, the Company did not have any derivative instruments outstanding as of December 31, 2016. As of December 31, 2016, the Company had no notional amounts in contracts with customers or in contracts with Fannie Mae for interest rate lock commitments outstanding related to loans being originated for sale. As of December 31, 2015, the Company had notional amounts of $5.1 million in contracts with customers and $8.1 million in contracts with Fannie Mae for interest rate lock commitments outstanding related to loans being originated for sale. The fair value of interest rate lock commitments was $0 as of December 31, 2016 and $225 thousand as of December 31, 2015. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 19. Regulatory Matters The payment of dividends by any financial institution is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized. The Company is subject to restrictions on the payment of dividends and cannot pay dividends that exceed its net income or which may weaken its financial health. The Company’s primary source of cash is dividends from the Bank. Generally, the Bank is subject to certain restrictions on dividends that it may declare without prior regulatory approval. The Bank cannot pay dividends in any calendar year that, in the aggregate, exceed the Bank’s year-to-date net income plus its retained income for the two preceding years. Additionally, the Bank cannot pay dividends that are in excess of the amount that would result in the Bank falling below the minimum required for capital adequacy purposes. Trinity was placed under a Written Agreement by the FRB on September 26, 2013. The Written Agreement requires Trinity to serve as a source of strength to the Bank and restricts Trinity’s ability, without written approval of the FRB, to make payments on the Company’s junior subordinated debentures, incur or increase any debt, issue dividends and other capital distributions or to repurchase or redeem any Trinity stock. Additionally, the Bank was similarly prohibited from paying dividends to Trinity under the Formal Agreement issued by the OCC on November 30, 2012 and under the Consent Order, which replaced the Formal Agreement, issued on December 17, 2013. The Consent Order requires that the Bank maintain certain capital ratios and receive approval from the OCC prior to declaring dividends. The Company and the Bank are taking actions to address the provisions of the enforcement actions. Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Failure to meet capital requirements can initiate regulatory action. The Basel III Rule became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. See Item 1 - "Supervision & Regulation" for further discussion regarding the Basel III Rules. The Company and the Bank met all capital adequacy requirements to which they were subject as of December 31, 2016. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The statutory requirements and actual amounts and ratios for the Company and the Bank are presented below: Actual For Capital Adequacy Purposes To be well capitalized under prompt corrective action provisions Minimum Levels Under Order Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2016 Total capital (to risk-weighted assets): Consolidated $ 178,906 20.0509 % $ 71,381 8.00 % N/A N/A N/A N/A Bank only 137,873 15.3793 % 71,719 8.00 % $ 89,649 10.00 % $ 98,614 11.00 % Tier 1 capital (to risk weighted assets): Consolidated 167,290 18.7490 % 53,536 6.00 % N/A N/A N/A N/A Bank only 126,598 14.1216 % 53,789 6.00 % 71,719 8.00 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets): Consolidated 60,840 6.8186 % 40,152 4.50 % N/A N/A N/A N/A Bank only 126,598 14.1216 % 40,342 4.50 % 58,272 6.50 % N/A N/A Tier 1 leverage (to average assets): Consolidated 167,290 12.0120 % 35,690 4.00 % N/A N/A N/A N/A Bank only 126,598 9.1596 % 35,859 4.00 % 44,824 5.00 % 71,719 8.00 % December 31, 2015 Total capital (to risk-weighted assets): Consolidated $ 128,272 14.10 % $ 72,774 8.00 % N/A N/A N/A N/A Bank only 141,486 15.62 % 72,452 8.00 % $ 90,565 10.00 % $ 99,621 11.00 % Tier 1 capital (to risk weighted assets): Consolidated 101,263 11.13 % 54,580 6.00 % N/A N/A N/A N/A Bank only 130,084 14.36 % 54,339 6.00 % 72,452 8.00 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets): Consolidated 44,080 4.85 % 40,935 4.50 % N/A N/A N/A N/A Bank only 130,084 14.36 % 40,754 4.50 % 58,867 6.50 % N/A N/A Tier 1 capital (to average assets): Consolidated 101,263 7.11 % 56,943 4.00 % N/A N/A N/A N/A Bank only 130,084 9.18 % 56,685 4.00 % 70,856 5.00 % 113,370 8.00 % N/A—not applicable While the Bank’s capital ratios fall into the category of “well-capitalized,” the Bank cannot be considered “well-capitalized” under the prompt corrective action rules due to the existence of the Consent Order. The Bank is required to maintain (i) a leverage ratio of Tier 1 Capital to total assets of at least 8%; and (ii) a ratio of Total Capital to total risk-weighted assets of at least 11%. As of December 31, 2016 and 2015 the Bank was in compliance with these requirements. Trinity and the Bank are also required to maintain a "capital conservation buffer" of 2.5% above the regulatory minimum risk-based capital requirements. The purpose of the conservation buffer is to ensure that banks maintain a buffer of capital that can be used to absorb losses during periods of financial and economic stress. The capital conservation buffer began to be phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase by that amount each year until fully implemented in January 2019. An institution would be subject to limitations on certain activities, including payment of dividends, share repurchases and discretionary bonuses to executive officers, if its capital level is below the buffered ratio. Factoring in the fully phased-in conservation buffer increases the minimum ratios described above to 7.0% for CET1, 8.5% for Tier 1 Capital and 10.5% for Total Capital. At December 31, 2016 the Bank's capital conservation buffer was 7.3793 % and the consolidated capital conservation buffer was 2.3186 %. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 20. Fair Value Measurements ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. The Company uses valuation techniques that are consistent with the sales comparison approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert expected future amounts, such as cash flows or earnings, to a single present value amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, ASC Topic 820 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s monthly and/or quarterly valuation process. Financial Instruments Recorded at Fair Value on a Recurring Basis Securities Available for Sale. Derivatives. The following table summarizes the Company's financial assets and off-balance-sheet instruments measured at fair value on a recurring basis as of December 31, 2016 and 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2016 Total Level 1 Level 2 Level 3 (In thousands) Financial Assets: Investment securities available for sale: U.S. Government sponsored agencies $ 68,828 $ - $ 68,828 $ - State and political subdivisions 37,343 - 37,343 - Residential mortgage-backed security 203,819 - 203,819 - Residential collateralized mortgage obligation 14,816 - 14,816 - Commercial mortgage backed security 114,172 - 114,172 - SBA pool 672 - 672 - Total $ 439,650 $ - $ 439,650 $ - December 31, 2015 Financial Assets: Investment securities available for sale: U.S. Government sponsored agencies $ 69,584 $ - $ 69,584 $ - Stats and political subdivisions 3,576 - 3,576 - Residential mortgage-backed security 121,597 - 121,597 - Residential collateralized mortgage obligation 39,921 - 39,921 - Commercial mortgage backed security 41,119 - 41,119 - SBA pool 750 - 750 - Asset backed security 39,493 - 39,493 - Interest rate lock commitments, mandatory forward delivery commitments and pair offs 225 - 225 - Total $ 316,265 $ - $ 316,265 $ - There were no financial liabilities that were measured at fair value as of December 31, 2016 and 2015. There were no financial assets or financial liabilities measured at fair value on a recurring basis for which the Company used significant unobservable inputs (Level 3) during the periods presented in these financial statements. There were no transfers between the levels used on any asset classes during the year. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis in accordance with GAAP. Impaired Loans. In accordance with ASC Topic 820, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. Collateral values are estimated using Level 3 inputs based on customized discounting criteria. For collateral dependent impaired loans, the Company obtains a current independent appraisal of loan collateral. Other valuation techniques are used as well, including internal valuations, comparable property analysis and contractual sales information. OREO. As of December 31, 2016, impaired loans with a carrying value of $34.6 million had a valuation allowance of $3.0 million. As of December 31, 2015, impaired loans with a carrying value of $40.7 million had a valuation allowance of $4.2 million. In the table below, OREO had write-downs during the years ended December 31, 2016 and 2015 of $63 thousand and $361 thousand, respectively. The valuation adjustments on OREO have been recorded through earnings. Assets measured at fair value on a nonrecurring basis as of December 31, 2016 and 2015 are included in the table below: Total Level 1 Level 2 Level 3 (In thousands) December 31, 2016 Financial Assets Impaired loans $ 31,636 $ - $ - $ 31,636 MSRs 6,905 - - 6,905 Non-Financial Assets OREO 582 - - 582 December 31, 2015 Financial Assets Impaired loans $ 36,870 $ - $ - $ 36,870 MSRs 6,905 - - 6,905 Non-Financial Assets OREO 2,231 - - 2,231 See Note 5 for assumptions used to determine the fair value of MSRs. Assumptions used to determine impaired loans and OREO are presented below by classification, measured at fair value and on a nonrecurring basis as of December 31, 2016 and 2015: Fair value Valuation Technique(s) Unobservable Input(s) Adjustment Range, Weighted Average December 31, 2016 (In thousands) Impaired loans Commercial $ 13,638 Sales comparison Adjustments for differences of comparable sales (0.00)% to (7.75)%, (5.79)% Commercial real estate 5,465 Sales comparison Adjustments for differences of comparable sales (4.25) to (7.62), (5.96) Residential real estate 7,174 Sales comparison Adjustments for differences of comparable sales (3.13) to (37.50), (6.73) Construction real estate 5,014 Sales comparison Adjustments for differences of comparable sales (4.00) to (7.50), (5.79) Installment and other 345 Sales comparison Adjustments for differences of comparable sales (0.00) to (37.50), (7.70) Total impaired loans $ 31,636 OREO Residential real estate 483 Sales comparison Adjustments for differences of comparable sales (3.16) to (11.76), (9.29) Construction real estate 99 Sales comparison Adjustments for differences of comparable sales (12.00) to (12.00), (12.00) Total OREO $ 582 December 31, 2015 Impaired loans Commercial $ 14,557 Sales comparison Adjustments for differences of comparable sales (0.00)% to (13.92)%, (5.70)% Commercial real estate 9,755 Sales comparison Adjustments for differences of comparable sales (4.25) to (7.62), (5.65) Residential real estate 8,624 Sales comparison Adjustments for differences of comparable sales (0.00) to (8.70), (5.29) Construction real estate 3,436 Sales comparison Adjustments for differences of comparable sales (4.00) to (7.50), (6.14) Installment and other 498 Sales comparison Adjustments for differences of comparable sales (4.13) to (9.5), (6.52) Total impaired loans $ 36,870 OREO Commercial real estate $ 217 Sales comparison Adjustments for differences of comparable sales (14.55) to (14.55), (14.55) Residential real estate 1,493 Sales comparison Adjustments for differences of comparable sales (8.47) to (91.19), (21.76) Construction real estate 521 Sales comparison Adjustments for differences of comparable sales (10.70) to (67.45), (57.32) Total OREO $ 2,231 Fair Value Assumptions ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The following methods and assumptions were used by the Company in estimating the fair values of its other financial instruments: Cash and due from banks and interest-bearing deposits with banks: Securities purchased under resell agreements: Investment Securities: Non-marketable equity securities: Loans held for sale: Loans: Noninterest-bearing deposits: Interest-bearing deposits: Long-term borrowings Junior subordinated debt Off-balance-sheet instruments Accrued interest: The carrying amount and estimated fair values of other financial instruments as of December 31, 2016 and 2015 are as follows: Carrying amount Level 1 Level 2 Level 3 Total (In thousands) December 31, 2016 Financial assets: Cash and due from banks $ 13,537 $ 13,537 $ - $ - $ 13,537 Interest-bearing deposits with banks 105,798 105,798 - - 105,798 Investments: Available for sale 439,650 - 439,650 - 439,650 Held to maturity 8,824 - 8,613 - 8,613 Non-marketable equity securities 3,812 N/A N/A N/A N/A Loans held for sale - - - - - Loans, net 771,138 - - 770,254 770,254 Accrued interest receivable on securities 1,873 - 1,873 - 1,873 Accrued interest receivable on loans 3,874 - - 3,874 3,874 Accrued interest receivable other 296 - - 296 296 Off-balance-sheet instruments: Loan commitments and standby letters of credit $ 26 $ - $ 26 $ - $ 26 Financial liabilities: Non-interest bearing deposits $ 28,301 $ 28,301 $ - $ - $ 28,301 Interest bearing deposits 1,186,788 - 1,194,233 - 1,194,233 Long-term borrowings 2,300 - 2,698 - 2,698 Junior subordinated debt 37,116 - - 20,582 20,582 Accrued interest payable 10,119 - 270 9,849 10,119 December 31, 2015 Financial assets: Cash and due from banks $ 13,506 $ 13,506 $ - $ - $ 13,506 Interest-bearing deposits with banks 151,049 151,049 - - 151,049 Securities purchased under resell agreements 24,320 24,320 - - 24,320 Investments: Available for sale 316,040 - 316,040 - 316,040 Held to maturity 8,986 - 8,988 - 8,988 Non-marketable equity securities 3,854 N/A N/A N/A N/A Loans held for sale 3,041 - - 3,041 3,041 Loans, net 822,396 - - 830,555 830,555 Accrued interest receivable on securities 1,028 - 1,028 - 1,028 Accrued interest receivable on loans 3,795 - - 3,795 3,795 Accrued interest receivable, other 208 - - 208 208 Interest rate lock commitments, mandatory forward delivery commitments and pair offs 225 - 225 - 225 Off-balance-sheet instruments: Loan commitments and standby letters of credit $ 20 $ - $ 20 $ - $ 20 Financial liabilities: Non-interest bearing deposits $ 75,867 $ 75,867 $ - $ - $ 75,867 Interest bearing deposits 1,178,091 - 1,176,958 - 1,176,958 Long-term borrowings 2,300 - 2,642 - 2,642 Junior subordinated debt 37,116 - - 20,461 20,461 Accrued interest payable 7,370 - 452 6,918 7,370 |
Other Noninterest Expense
Other Noninterest Expense | 12 Months Ended |
Dec. 31, 2016 | |
Other Noninterest Expense [Abstract] | |
Other Noninterest Expense | Note 21. Other Noninterest Expense Other noninterest expense items are presented in the following table for the years ended December 31, 2016, 2015 and 2014. Components exceeding 1% of the aggregate of total net interest income and total noninterest income are presented separately. Year Ended December 31, 2016 2015 2014 (In thousands) Other noninterest expenses Marketing $ 1,067 $ 1,335 $ 1,119 Supplies 794 486 444 Postage 639 648 748 FDIC insurance premiums 2,250 3,087 3,211 Collection expenses 746 834 1,217 Other 4,988 3,443 4,713 Total noninterest expenses $ 10,484 $ 9,833 $ 11,452 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 22. Subsequent Events Redemption of Series A Preferred Stock and Series B Preferred Stock On March 27, 2009, Trinity participated in the TARP Capital Purchase Program by issuing 35,539 shares of Series A Preferred Stock to the Treasury for a purchase price of $35.5 million in cash and issued warrants that were immediately exercised by the Treasury for 1,777 shares of Series B Preferred Stock. Using part of the proceeds from the private placement described above, the Company redeemed all of its outstanding Series A Preferred Stock and Series B Preferred Stock effective January 25, 2017. Payment of Deferred Interest on Trust Preferred Securities As of December 31, 2016, the Company had outstanding $37.1 million of trust preferred securities with a total of $9.8 million of accrued and unpaid interest. During the first quarter of 2017, the Company used part of the proceeds from the private placement, plus a portion of a $15 million dividend from the Bank, to pay all of the accrued and unpaid interest on the junior subordinated debentures. Conversion of Series C Preferred Stock to Non-Voting Common Stock At December 31, 2016, the Company had outstanding 82,862 shares of Series C Preferred Stock that were issued in connection with the private placement. Following shareholder approval of an amendment to the Company's articles of incorporation to authorize a class of non-voting common stock, and the subsequent filing of such amendment with the New Mexico Secretary of State, all outstanding shares of Series C Preferred Stock were automatically converted into 8,286,200 shares of non-voting common stock effective February 2, 2017. |
Condensed Parent Company Financ
Condensed Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Parent Company Financial Information [Abstract] | |
Condensed Parent Company Financial Information | Note 23. Condensed Parent Company Financial Information The condensed financial statements of Trinity Capital Corporation (parent company only) are presented below: Balance Sheets December 31, 2016 2015 (In thousands) Assets Cash $ 64,336 $ 707 Investments in subsidiaries 126,767 128,627 Other assets 11,047 7,944 Total assets $ 202,150 $ 137,278 Liabilities and Stockholders' Equity Dividends payable $ 12,965 $ 8,693 Junior subordinated debt owed to unconsolidated trusts 37,116 37,116 Other liabilities 14,769 12,479 Stock owned by Employee Stock Ownership Plan (ESOP) participants 3,192 2,690 Stockholders' equity 134,108 76,300 Total liabilities and stockholders' equity $ 202,150 $ 137,278 Statements of Operations December 31, 2016 2015 2014 (In thousands) Dividends from subsidiaries $ 15,000 $ - $ - Interest and other income 190 161 475 Interest and other expense (3,799 ) (3,152 ) (3,320 ) Income before income tax benefit and equity in undistributed net income of subsidiaries 11,391 (2,991 ) (2,845 ) Income tax benefit 3,657 - - Loss before equity in undistributed net income of subsidiaries 15,048 (2,991 ) (2,845 ) Equity in undistributed net income (loss) of subsidiaries 1,065 4,905 (3,147 ) Net income (loss) $ 16,113 $ 1,914 $ (5,992 ) Dividends and discount accretion on preferred shares 4,272 3,803 3,230 Net income (loss) available to common shareholders $ 11,841 $ (1,889 ) $ (9,222 ) Statements of Cash Flows December 31, 2016 2015 2014 (In thousands) Cash Flows From Operating Activities Net income (loss) $ 16,113 $ 1,914 $ (5,992 ) Adjustments to reconcile net income (loss) to net cash used in operating activities Amortization of junior subordinated debt owed to unconsolidated trusts issuance costs 14 14 14 Equity in undistributed net income (loss) of subsidiaries (1,065 ) (4,905 ) 3,147 Decrease in taxes payable to subsidiaries 797 9,051 1,139 Decrease in taxes receivable (797 ) (9,051 ) (1,139 ) Gain on sale of subsidiary - - (56 ) Decrease (increase) in other assets (2,320 ) 18,087 1,967 Decrease in other liabilities (1,437 ) (18,442 ) (1,632 ) Increase in sub debt accrued interest payable 2,842 2,559 2,340 Sale of subsidiary - - (111 ) Tax benefit recognized for exercise of stock options - - - Net cash used in operating activities $ 14,147 $ (773 ) $ (323 ) Cash Flows From Investing Activities Investments in and advances to subsidiaries 300 (100 ) 290 Net cash (used in) provided by investing activities $ 300 $ (100 ) $ 290 Cash Flows from Financing Activities Issuance of treasury stock 138 198 100 Issuance of treasury stock for capital raise 8,983 - - Issuance of Preferred C Stock for capital raise 37,089 - - Issuance of common stock for capital raise 2,889 - - 2016 granted RSUs expenses 83 - - Preferred shares dividend payments - - - Net cash provided by (used in) financing activities $ 49,182 $ 198 $ 100 Net increase (decrease) in cash 63,629 (675 ) 67 Cash: Beginning of year 707 1,382 1,315 End of year $ 64,336 $ 707 $ 1,382 |
Significant Accounting Polici31
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Consolidation | Consolidation: "Consolidation." |
Basis of presentation | Basis of presentation: |
Nature of operations | Nature of operations: |
Deposits with banks and securities purchased under resell agreements | Deposits with banks and securities purchased under resell agreements: |
Investment securities | Investment securities: Purchase premiums and discounts are generally recognized in interest income using the interest method over the term of the securities. For mortgage-backed securities, estimates of prepayments are considered in the constant yield calculations. An investment security is impaired if the fair value of the security is less than its amortized cost basis. Once the security is impaired, a determination must be made to determine if it is other than temporarily impaired (“OTTI”). In determining OTTI losses, management considers many factors, including: current market conditions, fair value in relationship to cost; extent and nature of the change in fair value; issuer rating changes and trends; whether it intends to sell the security before recovery of the amortized cost basis of the investment, which may be maturity; and other factors. For debt securities, if management intends to sell the security or it is likely that the Bank will be required to sell the security before recovering its cost basis, the entire impairment loss would be recognized in earnings as an OTTI. If management does not intend to sell the security and it is not likely that the Bank will be required to sell the security, but management does not expect to recover the entire amortized cost basis of the security, only the portion of the impairment loss representing credit losses would be recognized in earnings. The credit loss on a security is measured as the difference between the amortized cost basis and the present value of the cash flows expected to be collected. Projected cash flows are discounted by the original or current effective interest rate depending on the nature of the security being measured for potential OTTI. The remaining impairment related to the difference between the present value of the cash flows expected to be collected and fair value is recognized as a charge to other comprehensive income. |
Non-marketable equity securities | Non-marketable equity securities: |
Loans held for sale | Loans held for sale: Mortgage loans held for sale were generally sold with servicing rights retained; however, management intends to sell newly originated mortgage loans with servicing rights released going forward. The carrying value of mortgage loans sold is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. As the Bank is no longer originating mortgage loans there are no new additions to the servicing rights portfolio. |
Loans | Loans: Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized as an adjustment of the related loan’s yield. The Company amortizes these amounts over the estimated life of the loan. Commitment fees based upon a percentage of a customer’s unused line of credit and fees related to standby letters of credit are recognized over the commitment period. Net deferred fees on real estate loans sold in the secondary market reduce the cost basis of such loans. Interest on loans is accrued and reported as income using the interest method on daily principal balances outstanding. Past due status is based on the contractual terms of the loan. The Company generally discontinues accruing interest on loans when the loan becomes 90 days or more past due or when management believes that the borrower’s financial condition is such that collection of interest is doubtful. Cash collections on nonaccrual loans are credited to the loan balance, and no interest income is recognized on those loans until the principal balance has been determined to be collectible. Such interest will be reported as income on a cash basis, only upon collection of such interest. For all classes of loans, other than those included in large groups of smaller-balance homogeneous loans, are considered impaired when it is probable the Company will be unable to collect all contractual principal and interest payments due in accordance with the terms of the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, as a practical expedient, at the loan’s observable market price or the fair value of the collateral (less estimated disposition costs) if the loan is collateral dependent. The amount of impairment (if any) and any subsequent changes are included in the allowance for loan losses. A loan is classified as a troubled debt restructure (“TDR”) when a borrower is experiencing financial difficulties that lead to a restructuring of the loan, and the Company grants concessions to the borrower in the restructuring that it would not otherwise consider. These concessions may include rate reductions, principal forgiveness, extension of maturity date and other actions intended to minimize potential losses. In determining whether a debtor is experiencing financial difficulties, the Company considers if the debtor is in payment default or would be in payment default in the foreseeable future without the modification, the debtor declared or is in the process of declaring bankruptcy, there is substantial doubt that the debtor will continue as a going concern, the debtor has securities that have been or are in the process of being delisted, the debtor’s entity-specific projected cash flows will not be sufficient to service any of its debt, or the debtor cannot obtain funds from sources other than the existing creditors at a market rate for debt with similar risk characteristics. In determining whether the Company has granted a concession, the Company assesses, if it does not expect to collect all amounts due, whether the current value of the collateral will satisfy the amounts owed, whether additional collateral or guarantees from the debtor will serve as adequate compensation for other terms of the restructuring, and whether the debtor otherwise has access to funds at a market rate for debt with similar risk characteristics. A loan that is modified at a market rate of interest will not be classified as TDR in the calendar year subsequent to the restructuring if it is in compliance with the modified terms. Payment performance prior and subsequent to the restructuring is taken into account in assessing whether it is likely that the borrower can meet the new terms. A period of sustained repayment for at least six months generally is required for return to accrual status. Periodically, the Company will restructure a note into two separate notes (A/B structure), charging off the entire B portion of the note. The A note is structured with appropriate loan-to-value and cash flow coverage ratios that provide for a high likelihood of repayment. The A note is classified as a non-performing note until the borrower has displayed a historical payment performance for a reasonable time prior to and subsequent to the restructuring. A period of sustained repayment for at least six months generally is required to return the note to accrual status provided that management has determined that the performance is reasonably expected to continue. The A note will be classified as a restructured note (either performing or non-performing) through the calendar year of the restructuring that the historical payment performance has been established. |
Allowance for loan losses | Allowance for loan losses: The Company enhanced the allowance to loan losses calculation method at December 31, 2016. The enhancements precisely describe the factors used to build the allowance for loan losses estimate. The loss history now takes into account 20 quarters of gross charge-offs and recoveries whereas the previous calculation used 12 quarters. Management also applies a greater weight to the most recent quarter, declining in weight as time gets older. This allows the Bank to adjust its factors more quickly in a declining economic cycle where charge-offs are likely to increase while also allowing it to adjust its reserve when economic cycles are improving. At the same time, the longer window provides greater accuracy as to the likely charge-offs that will be incurred over time. This enhanced methodology relies more on analytical data, historical losses, and economic data, and less on subjective data that was previously used. The impact of the changes described resulted in an increase of $177 thousand at December 31, 2015 compared to the allowance calculation used at that time. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged-off against the allowance for loan losses when management believes that collectability of the principal is unlikely. The allowance for loan losses is an amount that management believes will be adequate to absorb probable incurred losses on existing loans, based on an evaluation of the collectability of loans in the portfolio and prior loss experience. This is based, in part, on an evaluation of the loss history of each type of loan over the past 20 quarters and this loss history is applied to the current outstanding loans of each respective type. This loss history analysis is updated quarterly to ensure it encompasses the most recent 20 quarter loss history. The allowance for loan losses is based on management’s evaluation of the loan portfolio giving consideration to the nature and volume of the loan portfolio, the value of underlying collateral, overall portfolio quality, review of specific problem loans, and prevailing economic conditions that may affect the borrower’s ability to pay. While management uses the best information available to make its evaluation, future adjustments to the allowance for loan losses may be necessary if there are significant changes in economic conditions. In analyzing the adequacy of the allowance for loan losses, management uses a comprehensive loan grading system to determine risk potential in the portfolio, and considers the results of periodic internal and external loan reviews. Specific reserves for impaired loans and historical loss experience factors, combined with other considerations, such as delinquency, nonaccrual status, trends on criticized and classified loans, economic conditions, concentrations of credit risk, and experience and abilities of lending personnel, are also considered in analyzing the adequacy of the allowance for loan losses. Management uses a systematic methodology, which is applied quarterly, to determine the amount of allowance for loan losses and the resultant provisions for loan losses it considers adequate to provide for probable incurred loan losses. In the event that different assumptions or conditions were to prevail, and depending upon the severity of such changes, the possibility of materially different financial condition or results of operations is a reasonable likelihood. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The general component covers non ‑ |
Concentrations of credit risk | Concentrations of credit risk: The majority of the loans, commitments to extend credit, and standby letters of credit have been granted to customers in Los Alamos, Santa Fe and surrounding communities. A substantial portion of the Company’s loan portfolio includes loans that are made to businesses and individuals associated with, or employed by, the Los Alamos National Laboratory (the “Laboratory”). The ability of such borrowers to honor their contracts is predominately dependent upon the continued operation and funding of the Laboratory. Investments in securities issued by state and political subdivisions involve governmental entities within the state of New Mexico. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Standby letters of credit are granted primarily to commercial borrowers. The Company recognizes a liability in relation to unfunded commitments that is intended to represent the estimated future losses on the commitments. In calculating the amount of this liability, management considers the amount of the Company’s off-balance-sheet commitments, estimated utilization factors and loan specific risk factors. The Company’s liability for unfunded commitments is calculated quarterly and the liability is included in “other liabilities” in the consolidated balance sheets. |
Premises and equipment | Premises and equipment: |
Bank owned life insurance ("BOLI") | Bank owned life insurance ("BOLI"): |
Other Real Estate Owned ("OREO") | Other Real Estate Owned (“OREO”): |
Mortgage Servicing Rights ("MSRs") | Mortgage Servicing Rights (“MSRs”): The carrying amount of MSRs, and the amortization thereon, is periodically evaluated in relation to their estimated fair values. The Bank stratifies the underlying mortgage loan portfolio by certain risk characteristics, such as loan type, interest rate and maturity, for purposes of measuring impairment. The Bank estimates the fair value of each stratum by calculating the discounted present value of future net servicing income based on management’s best estimate of remaining loan lives. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular group, a reduction of the valuation allowance may be recorded as an increase to income. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual payment speeds and default rates and losses. The Bank has determined that the primary risk characteristic of MSRs is the contractual interest rate and term of the underlying mortgage loans. Fees earned for servicing rights are recorded as "mortgage loan servicing fees" in the consolidated statements of operations. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. The amortization of MSRs as well as change in any valuation allowances are recorded in “other noninterest expenses” in the consolidated statements of operations. |
Federal Home Loan Bank (FHLB) Stock | Federal Home Loan Bank (FHLB) Stock: |
Federal Reserve Bank (FRB) Stock | Federal Reserve Bank (FRB) Stock: |
Other intangible assets | Other intangible assets: |
Loan commitments and related financial instruments | Loan commitments and related financial instruments |
Prepaid expenses | Prepaid expenses: |
Earnings (loss) per common share | Earnings (loss) per common share: Average number of shares used in calculation of basic and diluted earnings (loss) per common share are as follows for the years ended December 31, 2016, 2015 and 2014: Year ended December 31, 2016 2015 2014 (In thousands, except share and per share data) Net income (loss) $ 16,113 $ 1,914 $ (5,992 ) Dividends and discount accretion on preferred shares 4,272 3,803 3,230 Net income (loss) available to common shareholders $ 11,841 $ (1,889 ) $ (9,222 ) Weighted average common shares issued 6,939,747 6,856,800 6,856,800 LESS: Weighted average treasury stock shares (319,136 ) (373,163 ) (404,243 ) Weighted average common shares outstanding, net 6,620,611 6,483,637 6,452,557 Basic earnings (loss) per common share $ 1.79 $ (0.29 ) $ (1.43 ) Dilutive effect of stock-based compensation and conversion of Preferred C shares 313,997 - - Weighted average common shares outstanding including dilutive shares 6,934,608 6,483,637 6,452,557 Diluted earnings (loss) per common share $ 1.71 $ (0.29 ) $ (1.43 ) Certain stock options and restricted stock units were not included in the above calculation, as they would have an anti-dilutive effect as the exercise price is greater than current market prices. The total number of shares excluded was approximately 26,000 shares and 42,000 shares for years ended December 31, 2015 and 2014, respectively. |
Comprehensive income (loss) | Comprehensive income (loss): |
Transfers of financial assets | Transfers of financial assets: |
Impairment of long-lived assets | Impairment of long-lived assets: |
Income taxes | Income taxes: A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Stock-based compensation | Stock-based compensation: Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Preferred stock | Preferred stock: |
Fair value of financial instruments | Fair value of financial instruments: |
Operating segments | Operating segments |
Reclassification | Reclassifications |
Newly issued but not yet effective accounting standards | Newly Issued But Not Yet Effective Accounting Standards: ASU No. 2014 ‑ 09 Revenue from Contracts with Customers (Topic 606) ASU No. 2015-14 Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date In January 2016, the FASB issued ASU No. 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities (Topic 825). In February 2016, the FASB issued ASU 2016-02 Leases In March 2016, the FASB issued ASU 2016-07 Investments Equity Method and Joint Ventures In March 2016, the FASB issued ASU 2016-09 Compensation- Stock Compensation In April 2016, the FASB issued ASU 2016-10 Revenue from Contracts with Customers In May 2016, the FASB issued ASU 2016-12 Revenue from Contracts with Customers In June 2016, the FASB issued ASU 2016-13 Financial Instruments – Credit Losses In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows In November 2016, the FASB issued ASU 2016-18 Statement of Cash Flows (Topic 320) |
Significant Accounting Polici32
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies [Abstract] | |
Calculation of basic and diluted earnings (loss) per share | Average number of shares used in calculation of basic and diluted earnings (loss) per common share are as follows for the years ended December 31, 2016, 2015 and 2014: Year ended December 31, 2016 2015 2014 (In thousands, except share and per share data) Net income (loss) $ 16,113 $ 1,914 $ (5,992 ) Dividends and discount accretion on preferred shares 4,272 3,803 3,230 Net income (loss) available to common shareholders $ 11,841 $ (1,889 ) $ (9,222 ) Weighted average common shares issued 6,939,747 6,856,800 6,856,800 LESS: Weighted average treasury stock shares (319,136 ) (373,163 ) (404,243 ) Weighted average common shares outstanding, net 6,620,611 6,483,637 6,452,557 Basic earnings (loss) per common share $ 1.79 $ (0.29 ) $ (1.43 ) Dilutive effect of stock-based compensation and conversion of Preferred C shares 313,997 - - Weighted average common shares outstanding including dilutive shares 6,934,608 6,483,637 6,452,557 Diluted earnings (loss) per common share $ 1.71 $ (0.29 ) $ (1.43 ) |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investment Securities [Abstract] | |
Amortized cost and fair values of investment securities | Amortized cost and fair values of investment securities are summarized as follows: Securities Available for Sale: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) December 31, 2016 U.S. Government sponsored agency $ 69,306 $ 20 $ (498 ) $ 68,828 State and political subdivision 38,718 42 (1,417 ) 37,343 Residential mortgage-backed security 206,101 42 (2,324 ) 203,819 Residential collateralized mortgage obligation 14,828 77 (89 ) 14,816 Commercial mortgage backed security 117,272 57 (3,157 ) 114,172 SBA pools 681 - (9 ) 672 Totals $ 446,906 $ 238 $ (7,494 ) $ 439,650 December 31, 2015 U.S. Government sponsored agencies $ 69,798 $ 98 $ (312 ) $ 69,584 State and political subdivisions 3,429 147 - 3,576 Residential mortgage-backed security 123,055 43 (1,501 ) 121,597 Residential collateralized mortgage obligation 40,305 139 (523 ) 39,921 Commercial mortgage backed security 41,341 15 (237 ) 41,119 SBA pools 757 - (7 ) 750 Asset-backed security 40,136 - (643 ) 39,493 Totals $ 318,821 $ 442 $ (3,223 ) $ 316,040 Securities Held to Maturity Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) December 31, 2016 SBA pools $ 8,824 $ - $ (211 ) $ 8,613 Totals $ 8,824 $ - $ (211 ) $ 8,613 December 31, 2015 SBA pools $ 8,986 $ 2 $ - $ 8,988 Totals $ 8,986 $ 2 $ - $ 8,988 |
Realized net gains (losses) on sale and call of securities available for sale | Realized net gains (losses) on sale and call of securities available for sale are summarized as follows: Year ended December 31, 2016 2015 2014 (In thousands) Proceeds $ 111,075 $ 17,184 $ 24,500 Gross realized gains 491 4 1 Gross realized losses 307 - - |
Unrealized loss information for investment securities | A summary of unrealized loss information for investment securities, categorized by security type, as of December 31, 2016 and 2015 was as follows: Less than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Securities Available for Sale: (In thousands) December 31, 2016 U.S. Government sponsored agencies $ 53,877 $ (498 ) $ - $ - $ 53,877 $ (498 ) State and political subdivision 33,833 (1,417 ) - - 33,833 (1,417 ) Residential mortgage-backed security 143,344 (1,539 ) 50,474 (785 ) 193,818 (2,324 ) Residential collateralized mortgage obligation 8,413 (87 ) 122 (2 ) 8,535 (89 ) Commercial mortgage backed security 96,222 (3,157 ) - - 96,222 (3,157 ) SBA pools - - 673 (9 ) 673 (9 ) Asset-backed security - - - - - - Totals $ 335,689 $ (6,698 ) $ 51,269 $ (796 ) $ 386,958 $ (7,494 ) December 31, 2015 U.S. Government sponsored agency $ 54,804 $ (312 ) $ - $ - $ 54,804 $ (312 ) Residential mortgage-backed security 54,760 (602 ) 48,752 (899 ) 103,512 (1,501 ) Residential collateralized mortgage obligation 17,237 (185 ) 16,252 (338 ) 33,489 (523 ) Commercial mortgage backed security 26,883 (237 ) - - 26,883 (237 ) SBA pools - - 742 (7 ) 742 (7 ) Asset-backed security 39,493 (643 ) - - 39,493 (643 ) Totals $ 193,177 $ (1,979 ) $ 65,746 $ (1,244 ) $ 258,923 $ (3,223 ) |
Amortized cost and fair value of investment securities, by contractual maturity | The amortized cost and fair value of investment securities, as of December 31, 2016, by contractual maturity are shown below. Maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value December 31, 2016 (In thousands) One year or less $ 10,205 $ 10,204 $ - $ - One to five years 31,070 30,695 - - Five to ten years 31,249 31,189 - - Over ten years 36,181 34,755 8,824 8,613 Subtotal 108,705 106,843 8,824 8,613 Residential mortgage-backed security 206,101 203,819 - - Residential collateralized mortgage obligation 14,828 14,816 - - Commercial mortgage backed security 117,272 114,172 Total $ 446,906 $ 439,650 $ 8,824 $ 8,613 |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Allowance for Loan Losses [Abstract] | |
Components of loans | As of December 31, 2016 and 2015, loans consisted of: December 31, 2016 2015 (In thousands) Commercial $ 69,161 $ 92,995 Commercial real estate 405,900 371,599 Residential real estate 214,726 258,606 Construction real estate 75,972 89,341 Installment and other 21,053 28,730 Total loans 786,812 841,271 Unearned income (1,322 ) (1,483 ) Gross loans 785,490 839,788 Allowance for loan losses (14,352 ) (17,392 ) Net loans $ 771,138 $ 822,396 |
Contractual aging of the recorded investment in current and past due loans by class of loans | The following table presents the contractual aging of the recorded investment in current and past due loans by class of loans as of December 31, 2016 and 2015, including nonaccrual loans: Current 30-59 Days Past Due 60-89 Days Past Due Loans past due 90 days or more Total Past Due Total (In thousands) December 31, 2016 Commercial $ 67,562 $ 1,010 $ 221 $ 368 $ 1,599 $ 69,161 Commercial real estate 399,861 4,564 - 1,475 6,039 405,900 Residential real estate 208,200 3,089 1,355 2,082 6,526 214,726 Construction real estate 67,310 378 43 8,241 8,662 75,972 Installment and other 20,860 135 38 20 193 21,053 Total loans $ 763,793 $ 9,176 $ 1,657 $ 12,186 $ 23,019 $ 786,812 Nonaccrual loan classification $ 8,331 $ 249 $ 712 $ 12,186 $ 13,147 $ 21,478 December 31, 2015 Commercial $ 90,839 $ 167 $ 131 $ 1,858 $ 2,156 $ 92,995 Commercial real estate 363,495 1,526 704 5,874 8,104 371,599 Residential real estate 252,568 1,215 606 4,217 6,038 258,606 Construction real estate 80,629 291 85 8,336 8,712 89,341 Installment and other 28,534 110 12 74 196 28,730 Total loans $ 816,065 $ 3,309 $ 1,538 $ 20,359 $ 25,206 $ 841,271 Nonaccrual loan classification $ 6,202 $ 2,702 $ 1,418 $ 20,003 $ 24,123 $ 30,325 The following table presents the recorded investment in nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of December 31, 2016 and 2015: December 31, 2016 2015 Nonaccrual Loans past due 90 days or more and still accruing interest Nonaccrual Loans past due 90 days or more and still accruing interest (In thousands) Commercial $ 1,192 $ - $ 2,268 $ - Commercial real estate 5,823 - 10,737 - Residential real estate 4,247 - 7,821 - Construction real estate 10,159 - 9,353 - Installment and other 57 - 146 - Total $ 21,478 $ - $ 30,325 $ - |
Risk category of loans by class of loans | The following table presents the risk category by class of loans based on the most recent analysis performed and the contractual aging as of December 31, 2016 and 2015: Pass Special Mention Substandard Doubtful Total (In thousands) December 31, 2016 Commercial $ 56,611 $ 1,046 $ 11,504 $ - $ 69,161 Commercial real estate 380,777 11,573 13,550 - 405,900 Residential real estate 209,049 588 5,089 - 214,726 Construction real estate 60,848 5,378 9,746 - 75,972 Installment and other 20,983 4 66 - 21,053 Total $ 728,268 $ 18,589 $ 39,955 $ - $ 786,812 December 31, 2015 Commercial $ 69,221 $ 3,129 $ 20,645 $ - $ 92,995 Commercial real estate 307,700 19,512 44,387 - 371,599 Residential real estate 245,897 1,622 11,087 - 258,606 Construction real estate 71,864 6,667 10,810 - 89,341 Installment and other 28,378 2 350 - 28,730 Total $ 723,060 $ 30,932 $ 87,279 $ - $ 841,271 The following table shows all loans, including nonaccrual loans, by classification and aging, as of December 31, 2016 and 2015: Pass Special Mention Substandard Doubtful Total (In thousands) December 31, 2016 Current $ 724,075 $ 13,956 $ 25,762 $ - $ 763,793 Past due 30-59 days 3,383 4,633 1,160 - 9,176 Past due 60-89 days 810 - 847 - 1,657 Past due 90 days or more - - 12,186 - 12,186 Total $ 728,268 $ 18,589 $ 39,955 $ - $ 786,812 December 31, 2015 Current $ 719,752 $ 30,674 $ 65,639 $ - $ 816,065 Past due 30-59 days 349 258 2,702 - 3,309 Past due 60-89 days 109 - 1,429 - 1,538 Past due 90 days or more 2,850 - 17,509 - 20,359 Total $ 723,060 $ 30,932 $ 87,279 $ - $ 841,271 |
Loans and average loans individually evaluated for impairment by class of loans | The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2016 and 2015, showing the unpaid principal balance, the recorded investment of the loan (reflecting any loans with partial charge-offs), and the amount of allowance for loan losses specifically allocated for these impaired loans (if any): December 31, 2016 2015 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated (In thousands) With no related allowance recorded: Commercial $ 2,203 $ 2,166 $ - $ 13,611 $ 10,137 $ - Commercial real estate 6,368 6,136 - 15,872 14,198 - Residential real estate 5,176 4,494 - 9,473 7,450 - Construction real estate 7,522 6,031 - 9,816 8,137 - Installment and other 313 313 - 433 416 - With an allowance recorded: Commercial 13,988 13,988 350 14,958 14,956 399 Commercial real estate 6,376 6,376 911 11,050 11,050 1,295 Residential real estate 8,601 8,598 1,424 10,759 10,755 2,132 Construction real estate 5,288 5,251 237 3,688 3,688 252 Installment and other 433 433 88 636 636 138 Total $ 56,268 $ 53,786 $ 3,010 $ 90,296 $ 81,423 $ 4,216 The following table presents loans individually evaluated for impairment by class of loans for the years ended December 31, 2016, 2015 and 2014, showing the average recorded investment and the interest income recognized: 2016 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In thousands) With no related allowance recorded: Commercial $ 8,290 $ 59 $ 11,037 $ 553 $ 12,571 $ 533 Commercial real estate 10,467 17 18,376 592 29,459 369 Residential real estate 6,313 37 8,079 79 10,585 248 Construction real estate 6,786 20 8,911 196 10,685 162 Installment and other 349 15 584 65 947 81 With an allowance recorded: Commercial 14,459 764 15,437 804 15,921 832 Commercial real estate 8,919 272 14,066 468 19,791 591 Residential real estate 9,787 318 12,628 349 13,821 379 Construction real estate 4,295 179 5,321 157 6,296 210 Installment and other 546 14 690 20 835 27 Total $ 70,211 $ 1,695 $ 95,129 $ 3,283 $ 120,911 $ 3,432 |
Activity and allocation of allowance for loan losses | For the years ended December 31, 2016, 2015 and 2014, activity in the allowance for loan losses was as follows: Commercial Commercial real estate Residential real estate Construction real estate Installment and other Unallocated Total (In thousands) Year Ended December 31, 2016 Beginning balance $ 2,442 $ 6,751 $ 6,082 $ 1,143 $ 940 $ 34 $ 17,392 Provision (benefit) for loan losses (3,001 ) 4,954 (180 ) (146 ) 134 39 1,800 Charge-offs (822 ) (5,834 ) (1,726 ) (21 ) (575 ) - (8,978 ) Recoveries 2,830 601 348 143 216 - 4,138 Net charge-offs 2,008 (5,233 ) (1,378 ) 122 (359 ) - (4,840 ) Ending balance $ 1,449 $ 6,472 $ 4,524 $ 1,119 $ 715 $ 73 $ 14,352 Year Ended December 31, 2015 Beginning balance $ 4,031 $ 8,339 $ 7,939 $ 3,323 $ 788 $ 363 $ 24,783 Provision (benefit) for loan losses (1,146 ) 2,635 (80 ) (1,081 ) 501 (329 ) 500 Charge-offs (1,919 ) (4,731 ) (2,297 ) (1,570 ) (642 ) - (11,159 ) Recoveries 1,476 508 520 471 293 - 3,268 Net charge-offs (443 ) (4,223 ) (1,777 ) (1,099 ) (349 ) - (7,891 ) Ending balance $ 2,442 $ 6,751 $ 6,082 $ 1,143 $ 940 $ 34 $ 17,392 Year Ended December 31, 2014 Beginning balance $ 3,958 $ 10,699 $ 8,162 $ 4,658 $ 1,199 $ (318 ) $ 28,358 Provision (benefit) for loan losses 1,516 (334 ) 1,571 (1,504 ) 70 681 2,000 Charge-offs (2,261 ) (2,772 ) (2,463 ) (285 ) (631 ) - (8,412 ) Recoveries 818 746 669 454 150 - 2,837 Net charge-offs (1,443 ) (2,026 ) (1,794 ) 169 (481 ) - (5,575 ) Ending balance $ 4,031 $ 8,339 $ 7,939 $ 3,323 $ 788 $ 363 $ 24,783 Allocation of the allowance for loan losses (as well as the total loans in each allocation method), disaggregated on the basis of the Company’s impairment methodology, is as follows: Commercial Commercial real estate Residential real estate Construction real estate Installment and other Unallocated Total December 31, 2016 (In thousands) Allowance for loan losses allocated to: Loans individually evaluated for impairment $ 350 $ 911 $ 1,424 $ 237 $ 88 $ - $ 3,010 Loans collectively evaluated for impairment 1,099 5,561 3,100 882 627 73 11,342 Ending balance $ 1,449 $ 6,472 $ 4,524 $ 1,119 $ 715 $ 73 $ 14,352 Loans: Individually evaluated for impairment $ 16,154 $ 12,512 $ 13,092 $ 11,282 $ 746 $ - $ 53,786 Collectively evaluated for impairment 53,007 393,388 201,634 64,690 20,307 - 733,026 Total ending loans balance $ 69,161 $ 405,900 $ 214,726 $ 75,972 $ 21,053 $ - $ 786,812 December 31, 2015 Allowance for loan losses allocated to: Loans individually evaluated for impairment $ 399 $ 1,295 $ 2,132 $ 252 $ 138 $ - $ 4,216 Loans collectively evaluated for impairment 2,043 5,456 3,950 891 802 34 13,176 Ending balance $ 2,442 $ 6,751 $ 6,082 $ 1,143 $ 940 $ 34 $ 17,392 Loans: Individually evaluated for impairment $ 25,093 $ 25,248 $ 18,205 $ 11,825 $ 1,052 $ - $ 81,423 Collectively evaluated for impairment 67,902 346,351 240,401 77,516 27,678 - 759,848 Total ending loans balance $ 92,995 $ 371,599 $ 258,606 $ 89,341 $ 28,730 $ - $ 841,271 |
Troubled debt restructurings on financing receivables | The following loans were restructured during the years ended December 31, 2016, 2015, and 2014: Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Specific Reserves Allocated (Dollars in thousands) December 31, 2016 Commercial 1 $ 39 $ 39 $ - Construction real estate 1 62 62 - Installment and other 1 40 40 - Total 3 $ 141 $ 141 $ - December 31, 2015 Residential real estate 1 82 82 - Construction real estate 2 831 831 11 Installment and other 4 82 82 3 Total 7 $ 995 $ 995 $ 14 December 31, 2014 Commercial 3 $ 221 $ 90 $ 1 Commercial real estate 2 1,408 1,408 56 Residential real estate 6 498 493 21 Construction real estate 2 410 410 1 Installment and other 4 76 49 9 Total 17 $ 2,613 $ 2,450 $ 88 The following table presents loans by class modified as TDRs for which there was a payment default within twelve months following the modification during the years ended December 31, 2016, 2015, and 2014: Number of Contracts Recorded Investment Specific Reserves Allocated (Dollars in thousands) TDRs that subsequently defaulted: 2016 Construction real estate 1 $ 62 $ - Total 1 $ 62 $ - TDRs that subsequently defaulted: 2015 Construction real estate 2 $ 831 $ 11 Total 2 $ 831 $ 11 TDRs that subsequently defaulted: 2014 Residential real estate 1 $ 168 $ - Total 1 $ 168 $ - |
Total TDRs in accrual and nonaccrual status | The following table presents total TDRs, both in accrual and nonaccrual status, as of December 31, 2016, 2015, and 2014: December 31, 2016 2015 2014 Number of Contracts Amount Number of Contracts Amount Number of Contracts Amount (Dollars in thousands) Accrual 127 $ 35,158 165 $ 53,862 188 $ 60,973 Nonaccrual 23 7,909 32 10,641 61 27,394 Total TDRs 150 $ 43,067 197 $ 64,503 249 $ 88,367 |
Schedule of related parties loan | An analysis of the activity related to these loans as of December 31, 2016 and 2015 is as follows: December 31, 2016 2015 (In thousands) Balance, beginning $ 1,933 $ 1,322 Additions 158 438 Changes in composition (648 ) 800 Principal payments and other reductions (1,095 ) (627 ) Balance, ending $ 348 $ 1,933 |
Loan Servicing and Mortgage S35
Loan Servicing and Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Loan Servicing and Mortgage Servicing Rights [Abstract] | |
Unpaid balance of mortgage loan serviced for others | The unpaid balance of these loans as of December 31, 2016 and 2015 is summarized as follows: December 31, 2016 2015 (In thousands) Mortgage loan portfolios serviced for: Federal National Mortgage Association ("Fannie Mae") $ 780,348 $ 865,568 Other investors - 16 Totals $ 780,348 $ 865,584 |
Analysis of changes in mortgage servicing rights assets | An analysis of changes in the MSR asset for the years ended December 31, 2016, 2015 and 2014 follows: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at beginning of period $ 8,777 $ 9,470 $ 10,336 Servicing rights originated and capitalized 581 822 810 Amortization (1,455 ) (1,515 ) (1,676 ) Balance at end of period $ 7,903 $ 8,777 $ 9,470 |
Analysis of changes in the mortgage servicing right assets valuation allowance | Below is an analysis of changes in the MSR asset valuation allowance for the years ended December 31, 2016, 2015 and 2014: Year Ended December 31, 2016 2015 2014 (In thousands) Balance at beginning of period $ (1,895 ) $ (2,017 ) $ (2,021 ) Aggregate reduction credited to operations 2,557 2,644 1,373 Aggregate additions charged to operations (1,660 ) (2,522 ) (1,369 ) Balance at end of period $ (998 ) $ (1,895 ) $ (2,017 ) |
Assumptions used to calculate the market value of mortgage servicing right | The following assumptions were used to calculate the fair value of the MSRs as of December 31, 2016, 2015 and 2014: December 31, 2016 2015 2014 Weighted Average Public Securities Association (PSA) speed 193.93 % 213.25 % 201.67 % Weighted Average Discount rate 10.50 % 10.50 % 10.50 % Weighted Average Earnings rate 1.97 % 1.73 % 1.77 % |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Real Estate Owned [Abstract] | |
Other real estate owned | OREO consists of property acquired due to foreclosure on real estate loans. As of December 31, 2016 and 2015, total OREO consisted of: 2016 2015 (In thousands) Commercial real estate $ 2,181 $ 781 Residential real estate 2,734 3,024 Construction real estate 3,521 4,541 Total $ 8,436 $ 8,346 |
Summary of OREO activity | The following table presents a summary of OREO activity for the years ended December 31, 2016 and 2015: 2016 2015 (In thousands) Balance at beginning of period $ 8,346 $ 13,980 Transfers in at fair value 5,187 3,958 Write-down of value (91 ) (506 ) Gain (loss) on disposal 1,699 749 Cash received upon disposition (5,157 ) (7,989 ) Sales financed by loans (1,548 ) (1,846 ) Balance at end of period $ 8,436 $ 8,346 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Premises and Equipment [Abstract] | |
Components of premises and equipment | As of December 31, 2016 and 2015, premises and equipment consisted of: December 31, 2016 2015 (In thousands) Land and land improvements $ 4,822 $ 3,820 Buildings 26,870 23,166 Furniture and equipment 19,067 31,846 Total 50,760 58,832 Accumulated depreciation (24,800 ) (35,459 ) Total less depreciation $ 25,959 $ 23,373 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | As of December 31, 2016 and 2015, deposits consisted of: December 31, 2016 2015 (In thousands) Demand deposits, noninterest bearing $ 28,301 $ 75,867 NOW and money market accounts 558,941 511,423 Savings deposits 407,606 380,045 Time certificates, $250,000 or more 28,531 39,148 Other time certificates 191,710 247,475 Total $ 1,215,089 $ 1,253,958 |
Scheduled maturities of time certificates | As of December 31, 2016, the scheduled maturities of time certificates were as follows: (In thousands) 2017 $ 172,435 2018 24,319 2019 7,435 2020 4,464 2021 5,658 Thereafter 5,930 Total $ 220,241 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Borrowings [Abstract] | |
Schedule of borrowings | The following table details borrowings as of December 31, 2016 and 2015. Maturity Date Rate Type Principal due 2016 2015 (In thousands) April 27, 2021 6.343 % Fixed At maturity 2,300 2,300 Total $ 2,300 $ 2,300 |
Junior Subordinated Debt (Table
Junior Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Junior Subordinated Debt [Abstract] | |
Junior subordinated debt owed to unconsolidated trust | The following table presents details on the junior subordinated debt as of December 31, 2016: Trust I Trust III Trust IV Trust V (Dollars in thousands) Date of Issue March 23, 2000 May 11, 2004 June 29, 2005 September 21, 2006 Amount of trust preferred securities issued $ 10,000 $ 6,000 $ 10,000 $ 10,000 Rate on trust preferred securities 10.875 % 3.6307% (variable) 6.88 % 2.6134% (variable) Maturity March 8, 2030 September 8, 2034 November 23, 2035 December 15, 2036 Date of first redemption March 8, 2010 September 8, 2009 August 23, 2010 September 15, 2011 Common equity securities issued $ 310 $ 186 $ 310 $ 310 Junior subordinated deferrable interest debentures owed $ 10,310 $ 6,186 $ 10,310 $ 10,310 Rate on junior subordinated deferrable interest debentures 10.875 % 3.6307% (variable) 6.88 % 2.6134% (variable) |
Description of Leasing Arrang41
Description of Leasing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Description of Leasing Arrangements [Abstract] | |
Commitments for minimum future rentals under operating leases | Commitments for minimum future rentals under operating leases were as follows as of December 31, 2016: Lease Payments under Operating Leases Year (In thousands) 2017 $ 122 2018 5 2019 5 2020 2 Thereafter - Total $ 134 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Retirement Plans [Abstract] | |
Shares of company held by ESOP | Shares of the Company held by the ESOP are as follows: December 31, 2016 2015 Shares acquired before December 31, 1992 215,147 215,369 Shares acquired after December 31, 1992 456,815 457,254 Total shares 671,962 672,623 |
Stock Incentives (Tables)
Stock Incentives (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock Incentives [Abstract] | |
Summary of stock option, stock appreciation right and restricted stock unit activity | A summary of restricted stock unit (“RSU”) activity under the 1998 Plan, the 2005 Plan, and the 2015 Plan as of December 31, 2016 is presented below: Shares Weighted-Average Grant Price Weighted-Average Remaining Contractual Term, in years Aggregate Intrinsic Value (in thousands) RSUs Outstanding as of January 1, 2016 11,765 4.25 0.50 50 Granted 50,228 4.00 3.00 201 Exercised (11,765 ) 4.25 - 50 Forfeited or expired - - - - Outstanding as of December 31, 2016 50,228 $ 4.00 2.15 $ 201 Vested as of December 31, 2016 - $ - - $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Current and deferred components of provision (benefit) for income taxes | The current and deferred components of the provision (benefit) for income taxes for the years ended December 31, 2016, 2015 and 2014 are as follows: Year Ended December 31, 2016 2015 2014 (In thousands) Current provision (benefit) for income taxes Federal $ - $ - $ - State - - - Deferred provision (benefit) for income taxes Federal 772 (188 ) (1,621 ) State 375 242 (206 ) Change in valuation allowance (14,823 ) (54 ) 2,997 Total provision (benefit) for income taxes $ (13,676 ) $ - $ 1,170 |
Deferred tax assets and liabilities | Temporary differences that gave rise to the deferred tax assets and liabilities as of December 31, 2016 and 2015 are as follows: 2016 2015 Asset Liability Asset Liability (In thousands) Unrealized loss on securities available for sale $ 2,870 $ - $ 1,109 $ - Stock dividends on FHLB stock - 5 - 3 Venture capital investments 823 - 835 - Allowance for loan losses 5,904 - 7,106 - Premises and equipment - 1,252 - 1,273 MSRs - 2,731 - 2,722 Other intangible assets 256 - 377 - OREO 755 - 1,349 - Prepaid expenses - 756 - 636 Accrued compensation 310 - 566 - Capital losses 387 - 372 - Net operating loss carryforwards 6,010 - 4,687 - Business tax credits 2,827 - 2,827 - Stock options and SARs expensed 22 - 237 - Contributions and Other 231 - 206 - AMT credit 173 - 173 - Total deferred taxes 20,568 4,744 19,844 4,634 Allowance for deferred taxes (387 ) - (19,844 ) (4,634 ) Net deferred taxes $ 20,181 $ 4,744 $ - $ - |
Federal statutory tax rate and effective tax rate reconciliation | Items causing differences between the Federal statutory tax rate and the effective tax rate are summarized as follows: Year Ended December 31, 2016 2015 2014 Amount Rate Amount Rate Amount Rate (Dollars in thousands) Federal statutory tax rate $ 828 33.98 % $ 651 34.00 % (1,688 ) (35.00 )% Net tax exempt interest income (218 ) (8.95 )% (64 ) (3.34 )% (158 ) (3.28 )% Interest disallowance 3 0.12 % 1 0.05 % 3 0.06 % Nondeductible expenses 27 1.11 % 13 0.68 % 32 0.66 % Nondeductible book amortization - 0.00 % 107 5.59 % 156 3.24 % Other, net - 0.00 % - 0.00 % (90 ) (1.87 )% Tax credits - 0.00 % (424 ) (22.15 )% (424 ) (8.79 )% Provision to return adjustments 176 7.22 % (445 ) (23.25 )% - 0.00 % Fed rate differential 24 0.98 % 20 1.04 % - 0.00 % Change in state tax rate - 0.00 % 114 5.96 % - 0.00 % Increase in cash surrender value of life insurance (67 ) -2.75 % - 0.00 % - 0.00 % Fines & penalties - 0.00 % - 0.00 % 525 10.89 % State income tax, net of federal benefit 374 15.35 % 81 4.23 % (183 ) (3.80 )% Tax provision (benefit) before change in valuation allowance 1,147 47.07 % 54 2.82 % (1,827 ) (64.26 )% Change in valuation allowance (14,823 ) (608.25 )% (54 ) (2.82 )% 2,997 62.15 % Provision (benefit) for income taxes $ (13,676 ) (561.18 )% $ - 0.00 % $ 1,170 (2.11 )% |
Commitments and Off-Balance S45
Commitments and Off-Balance Sheet Activities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Off-Balance Sheet Activities [Abstract] | |
Credit-related commitments | As of December 31, 2016 and 2015, the following credit-related commitments were outstanding: Contract Amount 2016 2015 (In thousands) Unfunded commitments under lines of credit $ 118,252 $ 108,966 Commercial and standby letters of credit 7,152 7,608 Commitments to make loans 5,835 5,105 |
Commitments outstanding, breakdown between fixed-and adjustable-rate loans | The Company had outstanding loan commitments, excluding undisbursed portion of loans in process and equity lines of credit, of approximately $125.4 million as of December 31, 2016 and $116.6 million as of 2015, respectively. Of these commitments outstanding, the breakdown between fixed rate and adjustable rate loans is as follows: December 31, 2016 2015 (In thousands) Fixed rate $ 19,663 $ 11,913 Adjustable rate 105,741 104,661 Total $ 125,404 $ 116,574 |
Preferred Equity Issues (Tables
Preferred Equity Issues (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Preferred Equity Issues [Abstract] | |
Preferred equity issues under capital purchase program | Below is a table disclosing the information on the three series as of December 31, 2016: Number of shares issued Dividend rate Liquidation value per share Original cost, in thousands Series A cumulative perpetual preferred shares 35,539 5% for first 5 years; thereafter 9% $ 1,000.00 $ 33,437 Series B cumulative perpetual preferred shares 1,777 9 % 1,000.00 2,102 Series C cumulative perpetual convertible preferred shares 82,862 - 475.00 39,359 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Matters [Abstract] | |
Summary of required and actual amounts and ratios for the entity and the Bank | The statutory requirements and actual amounts and ratios for the Company and the Bank are presented below: Actual For Capital Adequacy Purposes To be well capitalized under prompt corrective action provisions Minimum Levels Under Order Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2016 Total capital (to risk-weighted assets): Consolidated $ 178,906 20.0509 % $ 71,381 8.00 % N/A N/A N/A N/A Bank only 137,873 15.3793 % 71,719 8.00 % $ 89,649 10.00 % $ 98,614 11.00 % Tier 1 capital (to risk weighted assets): Consolidated 167,290 18.7490 % 53,536 6.00 % N/A N/A N/A N/A Bank only 126,598 14.1216 % 53,789 6.00 % 71,719 8.00 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets): Consolidated 60,840 6.8186 % 40,152 4.50 % N/A N/A N/A N/A Bank only 126,598 14.1216 % 40,342 4.50 % 58,272 6.50 % N/A N/A Tier 1 leverage (to average assets): Consolidated 167,290 12.0120 % 35,690 4.00 % N/A N/A N/A N/A Bank only 126,598 9.1596 % 35,859 4.00 % 44,824 5.00 % 71,719 8.00 % December 31, 2015 Total capital (to risk-weighted assets): Consolidated $ 128,272 14.10 % $ 72,774 8.00 % N/A N/A N/A N/A Bank only 141,486 15.62 % 72,452 8.00 % $ 90,565 10.00 % $ 99,621 11.00 % Tier 1 capital (to risk weighted assets): Consolidated 101,263 11.13 % 54,580 6.00 % N/A N/A N/A N/A Bank only 130,084 14.36 % 54,339 6.00 % 72,452 8.00 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets): Consolidated 44,080 4.85 % 40,935 4.50 % N/A N/A N/A N/A Bank only 130,084 14.36 % 40,754 4.50 % 58,867 6.50 % N/A N/A Tier 1 capital (to average assets): Consolidated 101,263 7.11 % 56,943 4.00 % N/A N/A N/A N/A Bank only 130,084 9.18 % 56,685 4.00 % 70,856 5.00 % 113,370 8.00 % N/A—not applicable |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Financial assets and off-balance-sheet instruments measured at fair value on a recurring basis | The following table summarizes the Company's financial assets and off-balance-sheet instruments measured at fair value on a recurring basis as of December 31, 2016 and 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2016 Total Level 1 Level 2 Level 3 (In thousands) Financial Assets: Investment securities available for sale: U.S. Government sponsored agencies $ 68,828 $ - $ 68,828 $ - State and political subdivisions 37,343 - 37,343 - Residential mortgage-backed security 203,819 - 203,819 - Residential collateralized mortgage obligation 14,816 - 14,816 - Commercial mortgage backed security 114,172 - 114,172 - SBA pool 672 - 672 - Total $ 439,650 $ - $ 439,650 $ - December 31, 2015 Financial Assets: Investment securities available for sale: U.S. Government sponsored agencies $ 69,584 $ - $ 69,584 $ - Stats and political subdivisions 3,576 - 3,576 - Residential mortgage-backed security 121,597 - 121,597 - Residential collateralized mortgage obligation 39,921 - 39,921 - Commercial mortgage backed security 41,119 - 41,119 - SBA pool 750 - 750 - Asset backed security 39,493 - 39,493 - Interest rate lock commitments, mandatory forward delivery commitments and pair offs 225 - 225 - Total $ 316,265 $ - $ 316,265 $ - |
Assets measured at fair value on a nonrecurring basis | Assets measured at fair value on a nonrecurring basis as of December 31, 2016 and 2015 are included in the table below: Total Level 1 Level 2 Level 3 (In thousands) December 31, 2016 Financial Assets Impaired loans $ 31,636 $ - $ - $ 31,636 MSRs 6,905 - - 6,905 Non-Financial Assets OREO 582 - - 582 December 31, 2015 Financial Assets Impaired loans $ 36,870 $ - $ - $ 36,870 MSRs 6,905 - - 6,905 Non-Financial Assets OREO 2,231 - - 2,231 |
Valuation assumptions used on impaired loans and OREO on a nonrecurring basis at fair value | Assumptions used to determine impaired loans and OREO are presented below by classification, measured at fair value and on a nonrecurring basis as of December 31, 2016 and 2015: Fair value Valuation Technique(s) Unobservable Input(s) Adjustment Range, Weighted Average December 31, 2016 (In thousands) Impaired loans Commercial $ 13,638 Sales comparison Adjustments for differences of comparable sales (0.00)% to (7.75)%, (5.79)% Commercial real estate 5,465 Sales comparison Adjustments for differences of comparable sales (4.25) to (7.62), (5.96) Residential real estate 7,174 Sales comparison Adjustments for differences of comparable sales (3.13) to (37.50), (6.73) Construction real estate 5,014 Sales comparison Adjustments for differences of comparable sales (4.00) to (7.50), (5.79) Installment and other 345 Sales comparison Adjustments for differences of comparable sales (0.00) to (37.50), (7.70) Total impaired loans $ 31,636 OREO Residential real estate 483 Sales comparison Adjustments for differences of comparable sales (3.16) to (11.76), (9.29) Construction real estate 99 Sales comparison Adjustments for differences of comparable sales (12.00) to (12.00), (12.00) Total OREO $ 582 December 31, 2015 Impaired loans Commercial $ 14,557 Sales comparison Adjustments for differences of comparable sales (0.00)% to (13.92)%, (5.70)% Commercial real estate 9,755 Sales comparison Adjustments for differences of comparable sales (4.25) to (7.62), (5.65) Residential real estate 8,624 Sales comparison Adjustments for differences of comparable sales (0.00) to (8.70), (5.29) Construction real estate 3,436 Sales comparison Adjustments for differences of comparable sales (4.00) to (7.50), (6.14) Installment and other 498 Sales comparison Adjustments for differences of comparable sales (4.13) to (9.5), (6.52) Total impaired loans $ 36,870 OREO Commercial real estate $ 217 Sales comparison Adjustments for differences of comparable sales (14.55) to (14.55), (14.55) Residential real estate 1,493 Sales comparison Adjustments for differences of comparable sales (8.47) to (91.19), (21.76) Construction real estate 521 Sales comparison Adjustments for differences of comparable sales (10.70) to (67.45), (57.32) Total OREO $ 2,231 |
Carrying amount and estimated fair values of financial instruments | The carrying amount and estimated fair values of other financial instruments as of December 31, 2016 and 2015 are as follows: Carrying amount Level 1 Level 2 Level 3 Total (In thousands) December 31, 2016 Financial assets: Cash and due from banks $ 13,537 $ 13,537 $ - $ - $ 13,537 Interest-bearing deposits with banks 105,798 105,798 - - 105,798 Investments: Available for sale 439,650 - 439,650 - 439,650 Held to maturity 8,824 - 8,613 - 8,613 Non-marketable equity securities 3,812 N/A N/A N/A N/A Loans held for sale - - - - - Loans, net 771,138 - - 770,254 770,254 Accrued interest receivable on securities 1,873 - 1,873 - 1,873 Accrued interest receivable on loans 3,874 - - 3,874 3,874 Accrued interest receivable other 296 - - 296 296 Off-balance-sheet instruments: Loan commitments and standby letters of credit $ 26 $ - $ 26 $ - $ 26 Financial liabilities: Non-interest bearing deposits $ 28,301 $ 28,301 $ - $ - $ 28,301 Interest bearing deposits 1,186,788 - 1,194,233 - 1,194,233 Long-term borrowings 2,300 - 2,698 - 2,698 Junior subordinated debt 37,116 - - 20,582 20,582 Accrued interest payable 10,119 - 270 9,849 10,119 December 31, 2015 Financial assets: Cash and due from banks $ 13,506 $ 13,506 $ - $ - $ 13,506 Interest-bearing deposits with banks 151,049 151,049 - - 151,049 Securities purchased under resell agreements 24,320 24,320 - - 24,320 Investments: Available for sale 316,040 - 316,040 - 316,040 Held to maturity 8,986 - 8,988 - 8,988 Non-marketable equity securities 3,854 N/A N/A N/A N/A Loans held for sale 3,041 - - 3,041 3,041 Loans, net 822,396 - - 830,555 830,555 Accrued interest receivable on securities 1,028 - 1,028 - 1,028 Accrued interest receivable on loans 3,795 - - 3,795 3,795 Accrued interest receivable, other 208 - - 208 208 Interest rate lock commitments, mandatory forward delivery commitments and pair offs 225 - 225 - 225 Off-balance-sheet instruments: Loan commitments and standby letters of credit $ 20 $ - $ 20 $ - $ 20 Financial liabilities: Non-interest bearing deposits $ 75,867 $ 75,867 $ - $ - $ 75,867 Interest bearing deposits 1,178,091 - 1,176,958 - 1,176,958 Long-term borrowings 2,300 - 2,642 - 2,642 Junior subordinated debt 37,116 - - 20,461 20,461 Accrued interest payable 7,370 - 452 6,918 7,370 |
Other Noninterest Expense (Tabl
Other Noninterest Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Noninterest Expense [Abstract] | |
Other non-interest expense items | Other noninterest expense items are presented in the following table for the years ended December 31, 2016, 2015 and 2014. Components exceeding 1% of the aggregate of total net interest income and total noninterest income are presented separately. Year Ended December 31, 2016 2015 2014 (In thousands) Other noninterest expenses Marketing $ 1,067 $ 1,335 $ 1,119 Supplies 794 486 444 Postage 639 648 748 FDIC insurance premiums 2,250 3,087 3,211 Collection expenses 746 834 1,217 Other 4,988 3,443 4,713 Total noninterest expenses $ 10,484 $ 9,833 $ 11,452 |
Condensed Parent Company Fina50
Condensed Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Parent Company Financial Information [Abstract] | |
Condensed balance sheets | Balance Sheets December 31, 2016 2015 (In thousands) Assets Cash $ 64,336 $ 707 Investments in subsidiaries 126,767 128,627 Other assets 11,047 7,944 Total assets $ 202,150 $ 137,278 Liabilities and Stockholders' Equity Dividends payable $ 12,965 $ 8,693 Junior subordinated debt owed to unconsolidated trusts 37,116 37,116 Other liabilities 14,769 12,479 Stock owned by Employee Stock Ownership Plan (ESOP) participants 3,192 2,690 Stockholders' equity 134,108 76,300 Total liabilities and stockholders' equity $ 202,150 $ 137,278 |
Condensed statements of operations | Statements of Operations December 31, 2016 2015 2014 (In thousands) Dividends from subsidiaries $ 15,000 $ - $ - Interest and other income 190 161 475 Interest and other expense (3,799 ) (3,152 ) (3,320 ) Income before income tax benefit and equity in undistributed net income of subsidiaries 11,391 (2,991 ) (2,845 ) Income tax benefit 3,657 - - Loss before equity in undistributed net income of subsidiaries 15,048 (2,991 ) (2,845 ) Equity in undistributed net income (loss) of subsidiaries 1,065 4,905 (3,147 ) Net income (loss) $ 16,113 $ 1,914 $ (5,992 ) Dividends and discount accretion on preferred shares 4,272 3,803 3,230 Net income (loss) available to common shareholders $ 11,841 $ (1,889 ) $ (9,222 ) |
Condensed statements of cash flows | Statements of Cash Flows December 31, 2016 2015 2014 (In thousands) Cash Flows From Operating Activities Net income (loss) $ 16,113 $ 1,914 $ (5,992 ) Adjustments to reconcile net income (loss) to net cash used in operating activities Amortization of junior subordinated debt owed to unconsolidated trusts issuance costs 14 14 14 Equity in undistributed net income (loss) of subsidiaries (1,065 ) (4,905 ) 3,147 Decrease in taxes payable to subsidiaries 797 9,051 1,139 Decrease in taxes receivable (797 ) (9,051 ) (1,139 ) Gain on sale of subsidiary - - (56 ) Decrease (increase) in other assets (2,320 ) 18,087 1,967 Decrease in other liabilities (1,437 ) (18,442 ) (1,632 ) Increase in sub debt accrued interest payable 2,842 2,559 2,340 Sale of subsidiary - - (111 ) Tax benefit recognized for exercise of stock options - - - Net cash used in operating activities $ 14,147 $ (773 ) $ (323 ) Cash Flows From Investing Activities Investments in and advances to subsidiaries 300 (100 ) 290 Net cash (used in) provided by investing activities $ 300 $ (100 ) $ 290 Cash Flows from Financing Activities Issuance of treasury stock 138 198 100 Issuance of treasury stock for capital raise 8,983 - - Issuance of Preferred C Stock for capital raise 37,089 - - Issuance of common stock for capital raise 2,889 - - 2016 granted RSUs expenses 83 - - Preferred shares dividend payments - - - Net cash provided by (used in) financing activities $ 49,182 $ 198 $ 100 Net increase (decrease) in cash 63,629 (675 ) 67 Cash: Beginning of year 707 1,382 1,315 End of year $ 64,336 $ 707 $ 1,382 |
Significant Accounting Polici51
Significant Accounting Policies (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)NoteSegment$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | |
Loans held for sale [Abstract] | |||
Loans held for sale | $ | $ 0 | ||
Loans [Abstract] | |||
Minimum period of sustained repayment for loan to return to accrual status | 6 months | ||
Number of separate notes | Note | 2 | ||
Allowance for loan losses [Abstract] | |||
Increase in allowance for loan losses | $ | $ 177 | ||
Computation of basic and diluted earnings per share [Abstract] | |||
Net income (loss) | $ | $ 16,113 | 1,914 | $ (5,992) |
Dividends and discount accretion on preferred shares | $ | 4,272 | 3,803 | 3,230 |
Net income (loss) available to common shareholders | $ | $ 11,841 | $ (1,889) | $ (9,222) |
Weighted average common shares issued (in shares) | 6,939,747 | 6,856,800 | 6,856,800 |
LESS: Weighted average treasury stock shares (in shares) | (319,136) | (373,163) | (404,243) |
Weighted average common shares outstanding, net (in shares) | 6,620,611 | 6,483,637 | 6,452,557 |
Basic earnings (loss) per common share (in dollars per share) | $ / shares | $ 1.79 | $ (0.29) | $ (1.43) |
Dilutive effect of stock-based compensation and conversion of Preferred C shares (in shares) | 313,997 | 0 | 0 |
Weighted average common shares outstanding including dilutive shares (in shares) | 6,934,608 | 6,483,637 | 6,452,557 |
Diluted earnings (loss) per common share (in dollars per share) | $ / shares | $ 1.71 | $ (0.29) | $ (1.43) |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Number of shares excluded computation of earnings per share (in shares) | 26,000 | 42,000 | |
Operating segments [Abstract] | |||
Number of reportable operating segment | Segment | 1 | ||
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Prepaid Expense [Line Items] | |||
Original term of prepaid expenses | 3 months | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 39 years | ||
Prepaid Expense [Line Items] | |||
Original term of prepaid expenses | 5 years | ||
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Computer and Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Furniture [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Building and Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years | ||
Building and Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 39 years |
Restrictions on Cash and Due 52
Restrictions on Cash and Due From Banks (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Restrictions on Cash and Due From Banks [Abstract] | ||
Reserve balances in cash or on deposit with Federal Reserve Bank | $ 0 | $ 4.3 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Securities Available for Sale [Abstract] | ||
Amortized Cost | $ 446,906 | $ 318,821 |
Gross Unrealized Gains | 238 | 442 |
Gross Unrealized Losses | (7,494) | (3,223) |
Fair Value | 439,650 | 316,040 |
Securities Held-to-maturity [Abstract] | ||
Amortized Cost | 8,824 | 8,986 |
Gross Unrecognized Gains | 0 | 2 |
Gross Unrecognized Losses | (211) | 0 |
Fair Value | 8,613 | 8,988 |
U.S. Government Sponsored Agency [Member] | ||
Securities Available for Sale [Abstract] | ||
Amortized Cost | 69,306 | 69,798 |
Gross Unrealized Gains | 20 | 98 |
Gross Unrealized Losses | (498) | (312) |
Fair Value | 68,828 | 69,584 |
State and Political Subdivisions [Member] | ||
Securities Available for Sale [Abstract] | ||
Amortized Cost | 38,718 | 3,429 |
Gross Unrealized Gains | 42 | 147 |
Gross Unrealized Losses | (1,417) | 0 |
Fair Value | 37,343 | 3,576 |
Residential Mortgage-Backed Security [Member] | ||
Securities Available for Sale [Abstract] | ||
Amortized Cost | 206,101 | 123,055 |
Gross Unrealized Gains | 42 | 43 |
Gross Unrealized Losses | (2,324) | (1,501) |
Fair Value | 203,819 | 121,597 |
Residential Collateralized Mortgage Obligation [Member] | ||
Securities Available for Sale [Abstract] | ||
Amortized Cost | 14,828 | 40,305 |
Gross Unrealized Gains | 77 | 139 |
Gross Unrealized Losses | (89) | (523) |
Fair Value | 14,816 | 39,921 |
Commercial Mortgage Backed Security [Member] | ||
Securities Available for Sale [Abstract] | ||
Amortized Cost | 117,272 | 41,341 |
Gross Unrealized Gains | 57 | 15 |
Gross Unrealized Losses | (3,157) | (237) |
Fair Value | 114,172 | 41,119 |
SBA Pools [Member] | ||
Securities Available for Sale [Abstract] | ||
Amortized Cost | 681 | 757 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (9) | (7) |
Fair Value | 672 | 750 |
Asset-Backed Security [Member] | ||
Securities Available for Sale [Abstract] | ||
Amortized Cost | 40,136 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (643) | |
Fair Value | 39,493 | |
SBA Pools [Member] | ||
Securities Held-to-maturity [Abstract] | ||
Amortized Cost | 8,824 | 8,986 |
Gross Unrecognized Gains | 0 | 2 |
Gross Unrecognized Losses | (211) | 0 |
Fair Value | $ 8,613 | $ 8,988 |
Investment Securities, Realized
Investment Securities, Realized Net Gains (Losses) on Sale of Securities Available for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Realized net gains (losses) on sale and call of securities available for sale [Abstract] | |||
Proceeds | $ 111,075 | $ 17,184 | $ 24,500 |
Gross realized gains | 491 | 4 | 1 |
Gross realized losses | $ 307 | $ 0 | $ 0 |
Investment Securities, Unrealiz
Investment Securities, Unrealized Loss Information for Investment Securities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Security | Dec. 31, 2015USD ($)Security | |
Securities Available for Sale [Abstract] | ||
Less than 12 Months, Fair Value | $ 335,689 | $ 193,177 |
Less than 12 Months, Unrealized Losses | (6,698) | (1,979) |
12 Months or Longer, Fair Value | 51,269 | 65,746 |
12 Months or Longer, Unrealized Losses | (796) | (1,244) |
Total, Fair Value | 386,958 | 258,923 |
Total, Unrealized Losses | $ (7,494) | $ (3,223) |
Held to maturity investment securities in an unrealized loss position | Security | 2 | 0 |
Aggregate number of securities | Security | 147 | |
Number of securities in unrealized loss position | Security | 87 | |
Unrealized losses on debt securities | $ 387,000 | |
Percentage of aggregate depreciation of amortized cost basis | 1.90% | |
Investment securities continuous unrealized loss position twelve months or longer, fair value | $ 51,300 | |
Percentage of aggregate depreciation related to continuous unrealized loss position twelve months or longer | 1.53% | |
U.S. Government Sponsored Agencies [Member] | ||
Securities Available for Sale [Abstract] | ||
Less than 12 Months, Fair Value | $ 53,877 | $ 54,804 |
Less than 12 Months, Unrealized Losses | (498) | (312) |
12 Months or Longer, Fair Value | 0 | 0 |
12 Months or Longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 53,877 | 54,804 |
Total, Unrealized Losses | (498) | (312) |
State and Political Subdivisions [Member] | ||
Securities Available for Sale [Abstract] | ||
Less than 12 Months, Fair Value | 33,833 | |
Less than 12 Months, Unrealized Losses | (1,417) | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Unrealized Losses | 0 | |
Total, Fair Value | 33,833 | |
Total, Unrealized Losses | (1,417) | |
Residential Mortgage-Backed Security [Member] | ||
Securities Available for Sale [Abstract] | ||
Less than 12 Months, Fair Value | 143,344 | 54,760 |
Less than 12 Months, Unrealized Losses | (1,539) | (602) |
12 Months or Longer, Fair Value | 50,474 | 48,752 |
12 Months or Longer, Unrealized Losses | (785) | (899) |
Total, Fair Value | 193,818 | 103,512 |
Total, Unrealized Losses | (2,324) | (1,501) |
Residential Collateralized Mortgage Obligation [Member] | ||
Securities Available for Sale [Abstract] | ||
Less than 12 Months, Fair Value | 8,413 | 17,237 |
Less than 12 Months, Unrealized Losses | (87) | (185) |
12 Months or Longer, Fair Value | 122 | 16,252 |
12 Months or Longer, Unrealized Losses | (2) | (338) |
Total, Fair Value | 8,535 | 33,489 |
Total, Unrealized Losses | (89) | (523) |
Commercial Mortgage Backed Security [Member] | ||
Securities Available for Sale [Abstract] | ||
Less than 12 Months, Fair Value | 96,222 | 26,883 |
Less than 12 Months, Unrealized Losses | (3,157) | (237) |
12 Months or Longer, Fair Value | 0 | 0 |
12 Months or Longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 96,222 | 26,883 |
Total, Unrealized Losses | (3,157) | (237) |
SBA Pools [Member] | ||
Securities Available for Sale [Abstract] | ||
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Unrealized Losses | 0 | 0 |
12 Months or Longer, Fair Value | 673 | 742 |
12 Months or Longer, Unrealized Losses | (9) | (7) |
Total, Fair Value | 673 | 742 |
Total, Unrealized Losses | (9) | (7) |
Asset-Backed Security [Member] | ||
Securities Available for Sale [Abstract] | ||
Less than 12 Months, Fair Value | 0 | 39,493 |
Less than 12 Months, Unrealized Losses | 0 | (643) |
12 Months or Longer, Fair Value | 0 | 0 |
12 Months or Longer, Unrealized Losses | 0 | 0 |
Total, Fair Value | 0 | 39,493 |
Total, Unrealized Losses | $ 0 | $ (643) |
Investment Securities, Amortize
Investment Securities, Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available for Sale, Amortized Cost [Abstract] | ||
One year or less | $ 10,205 | |
One to five years | 31,070 | |
Five to ten years | 31,249 | |
Over ten years | 36,181 | |
Subtotal | 108,705 | |
Amortized cost | 446,906 | |
Available for Sale, Fair Value [Abstract] | ||
One year or less | 10,204 | |
One to five years | 30,695 | |
Five to ten years | 31,189 | |
Over ten years | 34,755 | |
Subtotal | 106,843 | |
Fair value | 439,650 | |
Held to Maturity, Amortized Cost [Abstract] | ||
One year or less | 0 | |
One to five years | 0 | |
Five to ten years | 0 | |
Over ten years | 8,824 | |
Subtotal | 8,824 | |
Amortized Cost | 8,824 | $ 8,986 |
Held to Maturity, Fair Value [Abstract] | ||
One year or less | 0 | |
One to five years | 0 | |
Five to ten years | 0 | |
Over ten years | 8,613 | |
Subtotal | 8,613 | |
Fair value | 8,613 | 8,988 |
Securities pledged as collateral on public deposits and for other purposes as required or permitted by law | 87,900 | $ 91,700 |
Residential Mortgage-Backed Security [Member] | ||
Available for Sale, Amortized Cost [Abstract] | ||
Amortized cost | 206,101 | |
Available for Sale, Fair Value [Abstract] | ||
Fair value | 203,819 | |
Residential Collateralized Mortgage Obligation [Member] | ||
Available for Sale, Amortized Cost [Abstract] | ||
Amortized cost | 14,828 | |
Available for Sale, Fair Value [Abstract] | ||
Fair value | 14,816 | |
Commercial Mortgage Backed Security [Member] | ||
Available for Sale, Amortized Cost [Abstract] | ||
Amortized cost | 117,272 | |
Available for Sale, Fair Value [Abstract] | ||
Fair value | 114,172 | |
Residential Mortgage-Backed Security [Member] | ||
Held to Maturity, Amortized Cost [Abstract] | ||
Amortized Cost | 0 | |
Held to Maturity, Fair Value [Abstract] | ||
Fair value | 0 | |
Residential Collateralized Mortgage Obligation [Member] | ||
Held to Maturity, Amortized Cost [Abstract] | ||
Amortized Cost | 0 | |
Held to Maturity, Fair Value [Abstract] | ||
Fair value | $ 0 |
Loans and Allowance for Loan 57
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Components of loans receivables [Abstract] | ||
Total loans | $ 786,812 | $ 841,271 |
Unearned income | (1,322) | (1,483) |
Gross loans | 785,490 | 839,788 |
Allowance for loan losses | (14,352) | (17,392) |
Net loans | $ 771,138 | $ 822,396 |
Percentage of outstanding principal balance of commercial real estate loans secured by owner occupied properties | 26.10% | 28.40% |
Commercial [Member] | ||
Components of loans receivables [Abstract] | ||
Total loans | $ 69,161 | $ 92,995 |
Commercial Real Estate [Member] | ||
Components of loans receivables [Abstract] | ||
Total loans | 405,900 | 371,599 |
Residential Real Estate [Member] | ||
Components of loans receivables [Abstract] | ||
Total loans | 214,726 | 258,606 |
Construction Real Estate [Member] | ||
Components of loans receivables [Abstract] | ||
Total loans | 75,972 | 89,341 |
Installment and Other [Member] | ||
Components of loans receivables [Abstract] | ||
Total loans | 21,053 | 28,730 |
Unallocated [Member] | ||
Components of loans receivables [Abstract] | ||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan 58
Loans and Allowance for Loan Losses, Loan Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Current | $ 763,793 | $ 816,065 |
Nonaccrual loan classification, Current | 8,331 | 6,202 |
Total Past Due | 23,019 | 25,206 |
Nonaccrual loan classification, Total Past Due | 13,147 | 24,123 |
Total loans | 786,812 | 841,271 |
Nonaccrual | 21,478 | 30,325 |
Loans past due 90 days or more still accruing interest | 0 | 0 |
30-59 Days Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 9,176 | 3,309 |
Nonaccrual loan classification, Total Past Due | 249 | 2,702 |
60-89 Days Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 1,657 | 1,538 |
Nonaccrual loan classification, Total Past Due | 712 | 1,418 |
90 Days or More Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 12,186 | 20,359 |
Nonaccrual loan classification, Total Past Due | 12,186 | 20,003 |
Commercial [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Current | 67,562 | 90,839 |
Total Past Due | 1,599 | 2,156 |
Total loans | 69,161 | 92,995 |
Nonaccrual | 1,192 | 2,268 |
Loans past due 90 days or more still accruing interest | 0 | 0 |
Commercial [Member] | 30-59 Days Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 1,010 | 167 |
Commercial [Member] | 60-89 Days Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 221 | 131 |
Commercial [Member] | 90 Days or More Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 368 | 1,858 |
Commercial Real Estate [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Current | 399,861 | 363,495 |
Total Past Due | 6,039 | 8,104 |
Total loans | 405,900 | 371,599 |
Nonaccrual | 5,823 | 10,737 |
Loans past due 90 days or more still accruing interest | 0 | 0 |
Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 4,564 | 1,526 |
Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 704 |
Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 1,475 | 5,874 |
Residential Real Estate [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Current | 208,200 | 252,568 |
Total Past Due | 6,526 | 6,038 |
Total loans | 214,726 | 258,606 |
Nonaccrual | 4,247 | 7,821 |
Loans past due 90 days or more still accruing interest | 0 | 0 |
Residential Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 3,089 | 1,215 |
Residential Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 1,355 | 606 |
Residential Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 2,082 | 4,217 |
Construction Real Estate [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Current | 67,310 | 80,629 |
Total Past Due | 8,662 | 8,712 |
Total loans | 75,972 | 89,341 |
Nonaccrual | 10,159 | 9,353 |
Loans past due 90 days or more still accruing interest | 0 | 0 |
Construction Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 378 | 291 |
Construction Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 43 | 85 |
Construction Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 8,241 | 8,336 |
Installment and Other [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Current | 20,860 | 28,534 |
Total Past Due | 193 | 196 |
Total loans | 21,053 | 28,730 |
Nonaccrual | 57 | 146 |
Loans past due 90 days or more still accruing interest | 0 | 0 |
Installment and Other [Member] | 30-59 Days Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 135 | 110 |
Installment and Other [Member] | 60-89 Days Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 38 | 12 |
Installment and Other [Member] | 90 Days or More Past Due [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total Past Due | 20 | 74 |
Unallocated [Member] | ||
Contractual aging of the recorded investment in current and past due loans by class of loans [Abstract] | ||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan 59
Loans and Allowance for Loan Losses, Risk Category of Loans by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Risk category of loans by class of loans [Abstract] | ||
Total loans | $ 786,812 | $ 841,271 |
Current | 763,793 | 816,065 |
Past due | 23,019 | 25,206 |
Nonaccrual | 21,478 | 30,325 |
30-59 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 9,176 | 3,309 |
60-89 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 1,657 | 1,538 |
90 Days or More Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 12,186 | 20,359 |
Pass [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 728,268 | 723,060 |
Current | 724,075 | 719,752 |
Pass [Member] | 30-59 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 3,383 | 349 |
Pass [Member] | 60-89 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 810 | 109 |
Pass [Member] | 90 Days or More Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 0 | 2,850 |
Special Mention [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 18,589 | 30,932 |
Current | 13,956 | 30,674 |
Special Mention [Member] | 30-59 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 4,633 | 258 |
Special Mention [Member] | 60-89 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 0 | 0 |
Special Mention [Member] | 90 Days or More Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 0 | 0 |
Substandard [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 39,955 | 87,279 |
Current | 25,762 | 65,639 |
Nonaccrual | 18,400 | 27,500 |
Substandard [Member] | 30-59 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 1,160 | 2,702 |
Substandard [Member] | 60-89 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 847 | 1,429 |
Substandard [Member] | 90 Days or More Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 12,186 | 17,509 |
Doubtful [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Current | 0 | 0 |
Doubtful [Member] | 30-59 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 0 | 0 |
Doubtful [Member] | 60-89 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 0 | 0 |
Doubtful [Member] | 90 Days or More Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 0 | 0 |
Commercial [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 69,161 | 92,995 |
Current | 67,562 | 90,839 |
Past due | 1,599 | 2,156 |
Nonaccrual | 1,192 | 2,268 |
Commercial [Member] | 30-59 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 1,010 | 167 |
Commercial [Member] | 60-89 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 221 | 131 |
Commercial [Member] | 90 Days or More Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 368 | 1,858 |
Commercial [Member] | Pass [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 56,611 | 69,221 |
Commercial [Member] | Special Mention [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 1,046 | 3,129 |
Commercial [Member] | Substandard [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 11,504 | 20,645 |
Commercial [Member] | Doubtful [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 405,900 | 371,599 |
Current | 399,861 | 363,495 |
Past due | 6,039 | 8,104 |
Nonaccrual | 5,823 | 10,737 |
Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 4,564 | 1,526 |
Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 0 | 704 |
Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 1,475 | 5,874 |
Commercial Real Estate [Member] | Pass [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 380,777 | 307,700 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 11,573 | 19,512 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 13,550 | 44,387 |
Commercial Real Estate [Member] | Doubtful [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Residential Real Estate [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 214,726 | 258,606 |
Current | 208,200 | 252,568 |
Past due | 6,526 | 6,038 |
Nonaccrual | 4,247 | 7,821 |
Residential Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 3,089 | 1,215 |
Residential Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 1,355 | 606 |
Residential Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 2,082 | 4,217 |
Residential Real Estate [Member] | Pass [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 209,049 | 245,897 |
Residential Real Estate [Member] | Special Mention [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 588 | 1,622 |
Residential Real Estate [Member] | Substandard [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 5,089 | 11,087 |
Residential Real Estate [Member] | Doubtful [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Construction Real Estate [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 75,972 | 89,341 |
Current | 67,310 | 80,629 |
Past due | 8,662 | 8,712 |
Nonaccrual | 10,159 | 9,353 |
Construction Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 378 | 291 |
Construction Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 43 | 85 |
Construction Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 8,241 | 8,336 |
Construction Real Estate [Member] | Pass [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 60,848 | 71,864 |
Construction Real Estate [Member] | Special Mention [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 5,378 | 6,667 |
Construction Real Estate [Member] | Substandard [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 9,746 | 10,810 |
Construction Real Estate [Member] | Doubtful [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Installment and Other [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 21,053 | 28,730 |
Current | 20,860 | 28,534 |
Past due | 193 | 196 |
Nonaccrual | 57 | 146 |
Installment and Other [Member] | 30-59 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 135 | 110 |
Installment and Other [Member] | 60-89 Days Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 38 | 12 |
Installment and Other [Member] | 90 Days or More Past Due [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Past due | 20 | 74 |
Installment and Other [Member] | Pass [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 20,983 | 28,378 |
Installment and Other [Member] | Special Mention [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 4 | 2 |
Installment and Other [Member] | Substandard [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 66 | 350 |
Installment and Other [Member] | Doubtful [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | 0 | 0 |
Unallocated [Member] | ||
Risk category of loans by class of loans [Abstract] | ||
Total loans | $ 0 | $ 0 |
Loans and Allowance for Loan 60
Loans and Allowance for Loan Losses, Impairment by Class of Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unpaid Principal Balance [Abstract] | |||
Total | $ 56,268 | $ 90,296 | |
Recorded Investment [Abstract] | |||
Total | 53,786 | 81,423 | |
Allowance for Loan Losses Allocated [Abstract] | |||
With an allowance recorded | 3,010 | 4,216 | |
Average Recorded Investment [Abstract] | |||
Total | 70,211 | 95,129 | $ 120,911 |
Interest Income Recognized [Abstract] | |||
Total | 1,695 | 3,283 | 3,432 |
Loan interest income | 1,100 | 1,800 | 3,000 |
Commercial [Member] | |||
Unpaid Principal Balance [Abstract] | |||
With no related allowance recorded | 2,203 | 13,611 | |
With an allowance recorded | 13,988 | 14,958 | |
Recorded Investment [Abstract] | |||
With no related allowance recorded | 2,166 | 10,137 | |
With an allowance recorded | 13,988 | 14,956 | |
Allowance for Loan Losses Allocated [Abstract] | |||
With an allowance recorded | 350 | 399 | |
Average Recorded Investment [Abstract] | |||
With no related allowance recorded | 8,290 | 11,037 | 12,571 |
With allowance recorded | 14,459 | 15,437 | 15,921 |
Interest Income Recognized [Abstract] | |||
With no related allowance recorded | 59 | 553 | 533 |
With an allowance recorded | 764 | 804 | 832 |
Commercial Real Estate [Member] | |||
Unpaid Principal Balance [Abstract] | |||
With no related allowance recorded | 6,368 | 15,872 | |
With an allowance recorded | 6,376 | 11,050 | |
Recorded Investment [Abstract] | |||
With no related allowance recorded | 6,136 | 14,198 | |
With an allowance recorded | 6,376 | 11,050 | |
Allowance for Loan Losses Allocated [Abstract] | |||
With an allowance recorded | 911 | 1,295 | |
Average Recorded Investment [Abstract] | |||
With no related allowance recorded | 10,467 | 18,376 | 29,459 |
With allowance recorded | 8,919 | 14,066 | 19,791 |
Interest Income Recognized [Abstract] | |||
With no related allowance recorded | 17 | 592 | 369 |
With an allowance recorded | 272 | 468 | 591 |
Residential Real Estate [Member] | |||
Unpaid Principal Balance [Abstract] | |||
With no related allowance recorded | 5,176 | 9,473 | |
With an allowance recorded | 8,601 | 10,759 | |
Recorded Investment [Abstract] | |||
With no related allowance recorded | 4,494 | 7,450 | |
With an allowance recorded | 8,598 | 10,755 | |
Allowance for Loan Losses Allocated [Abstract] | |||
With an allowance recorded | 1,424 | 2,132 | |
Average Recorded Investment [Abstract] | |||
With no related allowance recorded | 6,313 | 8,079 | 10,585 |
With allowance recorded | 9,787 | 12,628 | 13,821 |
Interest Income Recognized [Abstract] | |||
With no related allowance recorded | 37 | 79 | 248 |
With an allowance recorded | 318 | 349 | 379 |
Construction Real Estate [Member] | |||
Unpaid Principal Balance [Abstract] | |||
With no related allowance recorded | 7,522 | 9,816 | |
With an allowance recorded | 5,288 | 3,688 | |
Recorded Investment [Abstract] | |||
With no related allowance recorded | 6,031 | 8,137 | |
With an allowance recorded | 5,251 | 3,688 | |
Allowance for Loan Losses Allocated [Abstract] | |||
With an allowance recorded | 237 | 252 | |
Average Recorded Investment [Abstract] | |||
With no related allowance recorded | 6,786 | 8,911 | 10,685 |
With allowance recorded | 4,295 | 5,321 | 6,296 |
Interest Income Recognized [Abstract] | |||
With no related allowance recorded | 20 | 196 | 162 |
With an allowance recorded | 179 | 157 | 210 |
Installment and Other [Member] | |||
Unpaid Principal Balance [Abstract] | |||
With no related allowance recorded | 313 | 433 | |
With an allowance recorded | 433 | 636 | |
Recorded Investment [Abstract] | |||
With no related allowance recorded | 313 | 416 | |
With an allowance recorded | 433 | 636 | |
Allowance for Loan Losses Allocated [Abstract] | |||
With an allowance recorded | 88 | 138 | |
Average Recorded Investment [Abstract] | |||
With no related allowance recorded | 349 | 584 | 947 |
With allowance recorded | 546 | 690 | 835 |
Interest Income Recognized [Abstract] | |||
With no related allowance recorded | 15 | 65 | 81 |
With an allowance recorded | $ 14 | $ 20 | $ 27 |
Loans and Allowance for Loan 61
Loans and Allowance for Loan Losses, Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Activity in the allowance for loan losses [Roll Forward] | |||
Beginning balance | $ 17,392 | $ 24,783 | $ 28,358 |
Provision (benefit) for loan losses | 1,800 | 500 | 2,000 |
Charge-offs | (8,978) | (11,159) | (8,412) |
Recoveries | 4,138 | 3,268 | 2,837 |
Net charge-offs | (4,840) | (7,891) | (5,575) |
Ending balance | 14,352 | 17,392 | 24,783 |
Allocation of the allowance for loan losses [Abstract] | |||
Loans individually evaluated for impairment | 3,010 | 4,216 | |
Loans collectively evaluated for impairment | 11,342 | 13,176 | |
Ending balance | 14,352 | 17,392 | 24,783 |
Loans [Abstract] | |||
Individually evaluated for impairment | 53,786 | 81,423 | |
Collectively evaluated for impairment | 733,026 | 759,848 | |
Total ending loans balance | 786,812 | 841,271 | |
Commercial [Member] | |||
Activity in the allowance for loan losses [Roll Forward] | |||
Beginning balance | 2,442 | 4,031 | 3,958 |
Provision (benefit) for loan losses | (3,001) | (1,146) | 1,516 |
Charge-offs | (822) | (1,919) | (2,261) |
Recoveries | 2,830 | 1,476 | 818 |
Net charge-offs | 2,008 | (443) | (1,443) |
Ending balance | 1,449 | 2,442 | 4,031 |
Allocation of the allowance for loan losses [Abstract] | |||
Loans individually evaluated for impairment | 350 | 399 | |
Loans collectively evaluated for impairment | 1,099 | 2,043 | |
Ending balance | 1,449 | 2,442 | 4,031 |
Loans [Abstract] | |||
Individually evaluated for impairment | 16,154 | 25,093 | |
Collectively evaluated for impairment | 53,007 | 67,902 | |
Total ending loans balance | 69,161 | 92,995 | |
Commercial Real Estate [Member] | |||
Activity in the allowance for loan losses [Roll Forward] | |||
Beginning balance | 6,751 | 8,339 | 10,699 |
Provision (benefit) for loan losses | 4,954 | 2,635 | (334) |
Charge-offs | (5,834) | (4,731) | (2,772) |
Recoveries | 601 | 508 | 746 |
Net charge-offs | (5,233) | (4,223) | (2,026) |
Ending balance | 6,472 | 6,751 | 8,339 |
Allocation of the allowance for loan losses [Abstract] | |||
Loans individually evaluated for impairment | 911 | 1,295 | |
Loans collectively evaluated for impairment | 5,561 | 5,456 | |
Ending balance | 6,472 | 6,751 | 8,339 |
Loans [Abstract] | |||
Individually evaluated for impairment | 12,512 | 25,248 | |
Collectively evaluated for impairment | 393,388 | 346,351 | |
Total ending loans balance | 405,900 | 371,599 | |
Residential Real Estate [Member] | |||
Activity in the allowance for loan losses [Roll Forward] | |||
Beginning balance | 6,082 | 7,939 | 8,162 |
Provision (benefit) for loan losses | (180) | (80) | 1,571 |
Charge-offs | (1,726) | (2,297) | (2,463) |
Recoveries | 348 | 520 | 669 |
Net charge-offs | (1,378) | (1,777) | (1,794) |
Ending balance | 4,524 | 6,082 | 7,939 |
Allocation of the allowance for loan losses [Abstract] | |||
Loans individually evaluated for impairment | 1,424 | 2,132 | |
Loans collectively evaluated for impairment | 3,100 | 3,950 | |
Ending balance | 4,524 | 6,082 | 7,939 |
Loans [Abstract] | |||
Individually evaluated for impairment | 13,092 | 18,205 | |
Collectively evaluated for impairment | 201,634 | 240,401 | |
Total ending loans balance | 214,726 | 258,606 | |
Construction Real Estate [Member] | |||
Activity in the allowance for loan losses [Roll Forward] | |||
Beginning balance | 1,143 | 3,323 | 4,658 |
Provision (benefit) for loan losses | (146) | (1,081) | (1,504) |
Charge-offs | (21) | (1,570) | (285) |
Recoveries | 143 | 471 | 454 |
Net charge-offs | 122 | (1,099) | 169 |
Ending balance | 1,119 | 1,143 | 3,323 |
Allocation of the allowance for loan losses [Abstract] | |||
Loans individually evaluated for impairment | 237 | 252 | |
Loans collectively evaluated for impairment | 882 | 891 | |
Ending balance | 1,119 | 1,143 | 3,323 |
Loans [Abstract] | |||
Individually evaluated for impairment | 11,282 | 11,825 | |
Collectively evaluated for impairment | 64,690 | 77,516 | |
Total ending loans balance | 75,972 | 89,341 | |
Installment and Other [Member] | |||
Activity in the allowance for loan losses [Roll Forward] | |||
Beginning balance | 940 | 788 | 1,199 |
Provision (benefit) for loan losses | 134 | 501 | 70 |
Charge-offs | (575) | (642) | (631) |
Recoveries | 216 | 293 | 150 |
Net charge-offs | (359) | (349) | (481) |
Ending balance | 715 | 940 | 788 |
Allocation of the allowance for loan losses [Abstract] | |||
Loans individually evaluated for impairment | 88 | 138 | |
Loans collectively evaluated for impairment | 627 | 802 | |
Ending balance | 715 | 940 | 788 |
Loans [Abstract] | |||
Individually evaluated for impairment | 746 | 1,052 | |
Collectively evaluated for impairment | 20,307 | 27,678 | |
Total ending loans balance | 21,053 | 28,730 | |
Unallocated [Member] | |||
Activity in the allowance for loan losses [Roll Forward] | |||
Beginning balance | 34 | 363 | (318) |
Provision (benefit) for loan losses | 39 | (329) | 681 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 |
Ending balance | 73 | 34 | 363 |
Allocation of the allowance for loan losses [Abstract] | |||
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 73 | 34 | |
Ending balance | 73 | 34 | $ 363 |
Loans [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 0 | 0 | |
Total ending loans balance | $ 0 | $ 0 |
Loans and Allowance for Loan 62
Loans and Allowance for Loan Losses, Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($)Contract | Dec. 31, 2014USD ($)Contract | |
TDRs on financing receivables [Abstract] | |||
Number of Contracts | Contract | 3 | 7 | 17 |
Pre-Modification Outstanding Recorded Investment | $ 141 | $ 995 | $ 2,613 |
Post-Modification Outstanding Recorded Investment | 141 | 995 | 2,450 |
Specific reserves allocated | $ 0 | $ 14 | $ 88 |
TDRs, subsequent default [Abstract] | |||
Number of Contracts | Contract | 1 | 2 | 1 |
Recorded Investment | $ 62 | $ 831 | $ 168 |
Specific reserves allocated | $ 0 | $ 11 | $ 0 |
Number of Contracts [Abstract] | |||
Accrual | Contract | 127 | 165 | 188 |
Nonaccrual | Contract | 23 | 32 | 61 |
Total TDRs | Contract | 150 | 197 | 249 |
Amount [Abstract] | |||
Accrual | $ 35,158 | $ 53,862 | $ 60,973 |
Nonaccrual | 7,909 | 10,641 | 27,394 |
Total TDRs | 43,067 | 64,503 | 88,367 |
Commitments to lend additional funds | 1,600 | ||
Allowance for credit losses, Change in method of calculating impairment | 0 | 14 | 88 |
TDR charge-offs | 2,000 | 2,800 | 2,800 |
Troubled debt restructuring, subsequently defaulted, Provision to the allowance for loan losses | $ 0 | $ 11 | $ 0 |
Commercial [Member] | |||
TDRs on financing receivables [Abstract] | |||
Number of Contracts | Contract | 1 | 3 | |
Pre-Modification Outstanding Recorded Investment | $ 39 | $ 221 | |
Post-Modification Outstanding Recorded Investment | 39 | 90 | |
Specific reserves allocated | $ 0 | $ 1 | |
Commercial Real Estate [Member] | |||
TDRs on financing receivables [Abstract] | |||
Number of Contracts | Contract | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 1,408 | ||
Post-Modification Outstanding Recorded Investment | 1,408 | ||
Specific reserves allocated | $ 56 | ||
Residential Real Estate [Member] | |||
TDRs on financing receivables [Abstract] | |||
Number of Contracts | Contract | 1 | 6 | |
Pre-Modification Outstanding Recorded Investment | $ 82 | $ 498 | |
Post-Modification Outstanding Recorded Investment | 82 | 493 | |
Specific reserves allocated | $ 0 | $ 21 | |
TDRs, subsequent default [Abstract] | |||
Number of Contracts | Contract | 1 | ||
Recorded Investment | $ 168 | ||
Specific reserves allocated | $ 0 | ||
Construction Real Estate [Member] | |||
TDRs on financing receivables [Abstract] | |||
Number of Contracts | Contract | 1 | 2 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 62 | $ 831 | $ 410 |
Post-Modification Outstanding Recorded Investment | 62 | 831 | 410 |
Specific reserves allocated | $ 0 | $ 11 | $ 1 |
TDRs, subsequent default [Abstract] | |||
Number of Contracts | Contract | 1 | 2 | |
Recorded Investment | $ 62 | $ 831 | |
Specific reserves allocated | $ 0 | $ 11 | |
Installment and Other [Member] | |||
TDRs on financing receivables [Abstract] | |||
Number of Contracts | Contract | 1 | 4 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 40 | $ 82 | $ 76 |
Post-Modification Outstanding Recorded Investment | 40 | 82 | 49 |
Specific reserves allocated | $ 0 | $ 3 | $ 9 |
Loans and Allowance for Loan 63
Loans and Allowance for Loan Losses, Activity Related to Loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of the activity related to loans : | ||
Balance, beginning | $ 1,933,000 | $ 1,322,000 |
Additions | 158,000 | 438,000 |
Changes in composition | (648,000) | 800,000 |
Principal payments and other reductions | (1,095,000) | (627,000) |
Balance, ending | 348,000 | 1,933,000 |
Loans outstanding to executive officers and directors | $ 513,600 | $ 2,300,000 |
Loan Servicing and Mortgage S64
Loan Servicing and Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Unpaid balance of Mortgage loans serviced [Abstract] | |||
Federal National Mortgage Association ("Fannie Mae") | $ 780,348 | $ 865,568 | |
Other investors | 0 | 16 | |
Totals | $ 780,348 | $ 865,584 | |
Contractual servicing fee | 0.25% | 0.25% | 0.25% |
Late fees on loans serviced for others | $ 53 | $ 182 | $ 191 |
Custodial balances on deposit at the Bank in connection with the foregoing loan servicing | 4,800 | 6,100 | |
Custodial balances on deposit with other financial institutions with the foregoing loan servicing | 0 | 0 | |
Analysis of changes in mortgage servicing rights assets [Roll Forward] | |||
Balance at beginning of period | 8,777 | 9,470 | 10,336 |
Servicing rights originated and capitalized | 581 | 822 | 810 |
Amortization | (1,455) | (1,515) | (1,676) |
Balance at end of period | 7,903 | 8,777 | 9,470 |
Analysis of changes in the mortgage servicing right assets valuation allowance [Roll Forward] | |||
Balance at beginning of period | (1,895) | (2,017) | (2,021) |
Aggregate reduction credited to operations | 2,557 | 2,644 | 1,373 |
Aggregate additions charged to operations | (1,660) | (2,522) | (1,369) |
Balance at end of period | (998) | (1,895) | (2,017) |
Mortgage servicing right, fair value | $ 6,900 | $ 6,900 | $ 7,500 |
Assumptions used to calculate the market value [Abstract] | |||
Weighted Average Public Securities Association (PSA) speed | 193.93% | 213.25% | 201.67% |
Weighted Average Discount rate | 10.50% | 10.50% | 10.50% |
Weighted Average Earnings rate | 1.97% | 1.73% | 1.77% |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Real Estate [Line Items] | |||
Other real estate owned | $ 8,436 | $ 8,346 | $ 13,980 |
Commercial Real Estate [Member] | |||
Real Estate [Line Items] | |||
Other real estate owned | 2,181 | 781 | |
Residential Real Estate [Member] | |||
Real Estate [Line Items] | |||
Other real estate owned | 2,734 | 3,024 | |
Construction Real Estate [Member] | |||
Real Estate [Line Items] | |||
Other real estate owned | $ 3,521 | $ 4,541 |
Other Real Estate Owned, Rollfo
Other Real Estate Owned, Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Real Estate [Roll Forward] | |||
Balance at beginning of period | $ 8,346 | $ 13,980 | |
Transfers in at fair value | 5,187 | 3,958 | |
Write-down of value | (91) | (506) | |
Gain on disposal | 1,699 | 749 | |
Cash received upon disposition | (5,157) | (7,989) | $ (8,849) |
Sales financed by loans | (1,548) | (1,846) | |
Balance at end of period | $ 8,436 | $ 8,346 | $ 13,980 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 50,760 | $ 58,832 | |
Accumulated depreciation | (24,800) | (35,459) | |
Total less depreciation | 25,959 | 23,373 | |
Depreciation | 1,515 | 1,653 | $ 2,409 |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 4,822 | 3,820 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 26,870 | 23,166 | |
Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 19,067 | $ 31,846 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Demand deposits, noninterest bearing | $ 28,301 | $ 75,867 |
NOW and money market accounts | 558,941 | 511,423 |
Savings deposits | 407,606 | 380,045 |
Time certificates, $250,000 or more | 28,531 | 39,148 |
Other time certificates | 191,710 | 247,475 |
Total deposits | 1,215,089 | 1,253,958 |
Scheduled maturities of time certificates [Abstract] | ||
2,017 | 172,435 | |
2,018 | 24,319 | |
2,019 | 7,435 | |
2,020 | 4,464 | |
2,021 | 5,658 | |
Thereafter | 5,930 | |
Total | 220,241 | |
Deposits from executive officers, directors and their affiliates | $ 1,600 | $ 1,100 |
Borrowings (Details)
Borrowings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | ||
Loans pledged under blanket assignment | $ 537,700 | |
Investment securities pledged as collateral | 2,300,000 | |
Advances available based on remaining unpledged investment securities | 100,600,000 | |
Fixed rate advances on borrowings [Abstract] | ||
Long-term borrowings | 2,300,000 | $ 2,300,000 |
Short-term Borrowings [Member] | ||
Line of Credit Facility [Line Items] | ||
Amount of maximum borrowing capacity | $ 20,000,000 | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Short-term borrowings period | 15 days | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Short-term borrowings period | 60 days | |
Federal Home Loan Bank Advances 6.343% [Member] | ||
Fixed rate advances on borrowings [Abstract] | ||
Maturity Date | Apr. 27, 2021 | |
Rate | 6.343% | |
Type | Fixed | |
Principal due | At maturity | |
Long-term borrowings | $ 2,300,000 | $ 2,300,000 |
Junior Subordinated Debt (Detai
Junior Subordinated Debt (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Payment | Dec. 31, 2015USD ($) | Jun. 30, 2013USD ($) | |
Variable Interest Entity [Line Items] | |||
Common equity securities issued | $ 9,510 | $ 6,836 | |
Junior subordinated deferrable interest debentures owed | $ 37,116 | 37,116 | $ 37,100 |
Number of semi annual payments entity has right to defer | Payment | 10 | ||
Number of quarterly payments entity has right to defer | Payment | 20 | ||
Trust Preferred Securities [Member] | |||
Variable Interest Entity [Line Items] | |||
Junior subordinated deferrable interest debentures owed | $ 37,100 | ||
Accrued interest and unpaid | $ 9,800 | $ 6,900 | |
Trust I [Member] | |||
Variable Interest Entity [Line Items] | |||
Date of Issue | Mar. 23, 2000 | ||
Amount of trust preferred securities issued | $ 10,000 | ||
Rate on trust preferred securities | 10.875% | ||
Maturity | Mar. 8, 2030 | ||
Date of first redemption | Mar. 8, 2010 | ||
Common equity securities issued | $ 310 | ||
Junior subordinated deferrable interest debentures owed | $ 10,310 | ||
Rate on junior subordinated deferrable interest debentures, fixed | 10.875% | ||
Trust III [Member] | |||
Variable Interest Entity [Line Items] | |||
Date of Issue | May 11, 2004 | ||
Amount of trust preferred securities issued | $ 6,000 | ||
Variable rate on trust preferred securities | 3.6307% | ||
Maturity | Sep. 8, 2034 | ||
Date of first redemption | Sep. 8, 2009 | ||
Common equity securities issued | $ 186 | ||
Junior subordinated deferrable interest debentures owed | $ 6,186 | ||
Rate on junior subordinated deferrable interest debentures, variable | 3.6307% | ||
Trust IV [Member] | |||
Variable Interest Entity [Line Items] | |||
Date of Issue | Jun. 29, 2005 | ||
Amount of trust preferred securities issued | $ 10,000 | ||
Rate on trust preferred securities | 6.88% | ||
Maturity | Nov. 23, 2035 | ||
Date of first redemption | Aug. 23, 2010 | ||
Common equity securities issued | $ 310 | ||
Junior subordinated deferrable interest debentures owed | $ 10,310 | ||
Rate on junior subordinated deferrable interest debentures, fixed | 6.88% | ||
Trust V [Member] | |||
Variable Interest Entity [Line Items] | |||
Date of Issue | Sep. 21, 2006 | ||
Amount of trust preferred securities issued | $ 10,000 | ||
Variable rate on trust preferred securities | 2.6134% | ||
Maturity | Dec. 15, 2036 | ||
Date of first redemption | Sep. 15, 2011 | ||
Common equity securities issued | $ 310 | ||
Junior subordinated deferrable interest debentures owed | $ 10,310 | ||
Rate on junior subordinated deferrable interest debentures, variable | 2.6134% |
Description of Leasing Arrang71
Description of Leasing Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Description of Leasing Arrangements [Abstract] | |||
Extended lease term | 5 years | ||
Operating lease payments | $ 241 | $ 272 | $ 356 |
Capital lease obligations, current | 0 | ||
Lease Payments under Operating Leases [Abstract] | |||
2,017 | 122 | ||
2,018 | 5 | ||
2,019 | 5 | ||
2,020 | 2 | ||
Thereafter | 0 | ||
Total | $ 134 |
Retirement Plans (Details)
Retirement Plans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)hshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | |
Retirement Plans [Abstract] | |||
Minimum age of employees to benefit under the plan | 18 years | ||
Number of service hours | h | 1,000 | ||
Vesting period | 6 years | ||
Company's discretionary contributions to the ESOP | $ | $ 0 | $ 0 | $ 0 |
Employee Stock Ownership Plan (ESOP), Shares in ESOP [Abstract] | |||
Shares acquired before December 31, 1992 (in shares) | shares | 215,147 | 215,369 | |
Shares acquired after December 31, 1992 (in shares) | shares | 456,815 | 457,254 | |
Total shares (in shares) | shares | 671,962 | 672,623 | |
Compensation expense recognized for ESOP shares acquired | $ | $ 0 | $ 0 | $ 0 |
Purchase price period | 5 years | ||
Fair value of shares repurchase | $ | $ 3,200 | $ 2,700 |
Stock Incentives (Details)
Stock Incentives (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Units (RSUs) [Member] | |||
Restricted Stock Units [Roll Forward] | |||
Outstanding, Beginning Balance (in shares) | 11,765 | ||
Granted (in shares) | 50,228 | ||
Exercised (in shares) | (11,765) | ||
Forfeited or expired (in shares) | 0 | ||
Outstanding, Ending Balance (in shares) | 50,228 | 11,765 | |
Vested, Ending Balance (in shares) | 0 | ||
Weighted-Average Grant Price [Roll Forward] | |||
Outstanding, Beginning Balance (in dollars per share) | $ 4.25 | ||
Granted (in dollars per share) | 4 | ||
Exercised (in dollars per share) | 4.25 | ||
Forfeited or expired (in dollars per share) | 0 | ||
Outstanding, Ending Balance (in dollars per share) | 4 | $ 4.25 | |
Vested, Ending Balance (in dollars per share) | $ 0 | ||
Weighted-Average Remaining Contractual Term [Abstract] | |||
Outstanding | 2 years 1 month 24 days | 6 months | |
Granted | 3 years | ||
Exercised | 0 years | ||
Forfeited or expired | 0 years | ||
Vested | 0 years | ||
Aggregate Intrinsic Value [Abstract] | |||
Outstanding, Beginning Balance | $ 50 | ||
Granted | 201 | ||
Exercised | 50 | ||
Forfeitures or expired | 0 | ||
Outstanding, Ending Balance | 201 | $ 50 | |
Vested | $ 0 | ||
Additional General Disclosures [Abstract] | |||
Restricted stock options, exercised (in shares) | 0 | 0 | |
1998 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares held in treasury or authorized but unissued common stock have been reserved (in shares) | 400,000 | ||
2005 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares held in treasury or authorized but unissued common stock have been reserved (in shares) | 500,000 | ||
2015 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares held in treasury or authorized but unissued common stock have been reserved (in shares) | 500,000 | ||
Shares awarded (in shares) | 50,228 | ||
Additional General Disclosures [Abstract] | |||
Unrecognized compensation cost | $ 145 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2011 | |
Current provision (benefit) for income taxes [Abstract] | ||||
Federal | $ 0 | $ 0 | $ 0 | |
State | 0 | 0 | 0 | |
Deferred provision (benefit) for income taxes [Abstract] | ||||
Federal | 772 | (188) | (1,621) | |
State | 375 | 242 | (206) | |
Change in valuation allowance | (14,823) | (54) | 2,997 | |
Total provision (benefit) for income taxes | (13,676) | 0 | 1,170 | |
Deferred Tax Assets [Abstract] | ||||
Unrealized loss on securities available for sale | 2,870 | 1,109 | ||
Venture capital investments | 823 | 835 | ||
Allowance for loan losses | 5,904 | 7,106 | ||
Other intangible assets | 256 | 377 | ||
OREO | 755 | 1,349 | ||
Accrued compensation | 310 | 566 | ||
Capital losses | 387 | 372 | ||
Net operating loss carryforwards | 6,010 | 4,687 | ||
Business tax credits | 2,827 | 2,827 | ||
Stock options and SARs expensed | 22 | 237 | ||
Contributions & Other | 231 | 206 | ||
AMT credit | 173 | 173 | ||
Total deferred taxes | 20,568 | 19,844 | $ 14,600 | |
Allowance for deferred taxes | (387) | (19,844) | ||
Net deferred taxes | 20,181 | 0 | ||
Deferred Tax Liabilities [Abstract] | ||||
Stock dividends on FHLB stock | 5 | 3 | ||
Premises and equipment | 1,252 | 1,273 | ||
MSRs | 2,731 | 2,722 | ||
Prepaid expenses | 756 | 636 | ||
Contributions & Other | 0 | 0 | ||
Total deferred taxes | 4,744 | 4,634 | ||
Allowance for deferred taxes | 0 | (4,634) | ||
Net deferred taxes | 4,744 | 0 | ||
Operating Loss Carryforwards [Line Items] | ||||
Alternative minimum tax carryforward | 173 | 173 | ||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Federal statutory tax rate | 828 | 651 | (1,688) | |
Net tax exempt interest income | (218) | (64) | (158) | |
Interest disallowance | 3 | 1 | 3 | |
Nondeductible expenses | 27 | 13 | 32 | |
Nondeductible book amortization | 0 | 107 | 156 | |
Other, net | 0 | 0 | (90) | |
Tax credits | 0 | (424) | (424) | |
Provision to return adjustments | 176 | (445) | 0 | |
Fed rate differential | 24 | 20 | 0 | |
Change in state tax rate | 0 | 114 | 0 | |
Increase in cash surrender value of life insurance | (67) | 0 | 0 | |
Fines & penalties | 0 | 0 | 525 | |
State income tax, net of federal benefit | 374 | 81 | (183) | |
Tax provision (benefit) before change in valuation allowance | 1,147 | 54 | (1,827) | |
Change in valuation allowance | (14,823) | (54) | 2,997 | |
Total provision (benefit) for income taxes | $ (13,676) | $ 0 | $ 1,170 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Federal statutory tax rate | 33.98% | 34.00% | (35.00%) | |
Net tax exempt interest income | (8.95%) | (3.34%) | (3.28%) | |
Interest disallowance | 0.12% | 0.05% | 0.06% | |
Nondeductible expenses | 1.11% | 0.68% | 0.66% | |
Nondeductible book amortization | 0.00% | 5.59% | 3.24% | |
Other, net | 0.00% | 0.00% | (1.87%) | |
Tax credits | 0.00% | (22.15%) | (8.79%) | |
Provision to return adjustments | 7.22% | (23.25%) | 0.00% | |
Fed rate differential | 0.98% | 1.04% | 0.00% | |
Change in state tax rate | 0.00% | 5.96% | 0.00% | |
Increase in cash surrender value of life insurance | (2.75%) | 0.00% | 0.00% | |
Fines & penalties | 0.00% | 0.00% | 10.89% | |
State income tax, net of federal benefit | 15.35% | 4.23% | (3.80%) | |
Tax provision (benefit) before change in valuation allowance | 47.07% | 2.82% | (64.26%) | |
Change in valuation allowance | (608.25%) | (2.82%) | 62.15% | |
Provision (benefit) for income taxes | (561.18%) | 0.00% | (2.11%) | |
Income Tax Penalties and Interest Accrued [Abstract] | ||||
Labilities associated with uncertain tax positions | $ 0 | $ 0 | ||
Accrual for interest and penalties | 0 | 0 | ||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | 15,400 | |||
Business tax credits | $ 2,400 | $ 2,400 | ||
Tax credit, expiration date | Dec. 31, 2031 | |||
State [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards | $ 13,900 | |||
Business tax credits | $ 427,000 | |||
Tax credit, expiration date | Dec. 31, 2018 | |||
Earliest Tax Year [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards, expire date | Dec. 31, 2031 | |||
Latest Tax Year [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforwards, expire date | Dec. 31, 2035 |
Commitments and Off-Balance S75
Commitments and Off-Balance Sheet Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||
FHLB, collateral amount | $ 102,900 | |
Term of letter of credit | 1 year | |
Potential obligations under credit-related commitments | $ 575 | $ 575 |
Fixed And Adjustable Rate Loans [Abstract] | ||
Fixed rate | 19,663 | 11,913 |
Adjustable rate | 105,741 | 104,661 |
Total | $ 125,404 | 116,574 |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Fixed interest rate | 14.80% | |
Term of derivatives maturities | 10 years | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Fixed interest rate | 2.30% | |
Unfunded Commitments under Lines of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Credit-related commitments | $ 118,252 | 108,966 |
Commercial and Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Credit-related commitments | 7,152 | 7,608 |
Fees collected on grants of letters of credit | 26 | 20 |
Commitments to Make Loans [Member] | ||
Loss Contingencies [Line Items] | ||
Credit-related commitments | $ (5,835) | $ 5,105 |
Preferred Equity Issues (Detail
Preferred Equity Issues (Details) $ / shares in Units, $ in Thousands | Dec. 19, 2016USD ($)$ / sharesshares | Mar. 27, 2009USD ($)shares | Dec. 31, 2016USD ($)Series$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($) | Feb. 02, 2017$ / sharesshares |
Schedule of preferred equity issues under capital purchase program [Abstract] | ||||||
Gross proceeds from private placement | $ | $ 52,000 | |||||
Common stock, issued (in shares) | shares | 9,199,306 | 6,856,800 | ||||
Common stock, par value (in dollars per share) | $ 0 | $ 0 | ||||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 | ||||
Purchase price in cash | $ | $ 37,089 | $ 0 | $ 0 | |||
Number of series of preferred stock issued | Series | 3 | |||||
Amortized period of the liquidation value of the preferred shares | 10 years | |||||
Net amount accreted to capital preferred equity | $ | $ 178 | 178 | ||||
Amount of dividends and net accretion on the preferred shares reduces net income | $ | $ 4,300 | $ 3,800 | ||||
Minimum [Member] | ||||||
Schedule of preferred equity issues under capital purchase program [Abstract] | ||||||
Percentage of stock ownership required for investor to be appointed as representative of board of directors | 5.00% | |||||
Series A Cumulative Perpetual Preferred Shares [Member] | ||||||
Schedule of preferred equity issues under capital purchase program [Abstract] | ||||||
Number of shares issued (in shares) | shares | 35,539 | 35,539 | 35,539 | |||
Dividend rate, description | 5% for first 5 years; thereafter 9% | |||||
Dividend rate | 9.00% | 9.00% | ||||
Liquidation value per share (in dollars per share) | $ 1,000 | $ 1,000 | ||||
Original cost | $ | $ 33,437 | |||||
Dividend rate of first five years | 5.00% | |||||
Dividend rate after five years | 9.00% | |||||
Purchase price in cash | $ | $ 35,500 | |||||
Preferred stock, outstanding (in shares) | shares | 35,539 | 35,539 | ||||
Series B Cumulative Perpetual Preferred Shares [Member] | ||||||
Schedule of preferred equity issues under capital purchase program [Abstract] | ||||||
Number of shares issued (in shares) | shares | 1,777 | 1,777 | 1,777 | |||
Dividend rate | 9.00% | 9.00% | ||||
Liquidation value per share (in dollars per share) | $ 1,000 | $ 1,000 | ||||
Original cost | $ | $ 2,102 | |||||
Preferred stock, outstanding (in shares) | shares | 1,777 | 1,777 | ||||
Series C Cumulative Perpetual Convertible Preferred Shares [Member] | ||||||
Schedule of preferred equity issues under capital purchase program [Abstract] | ||||||
Number of shares issued (in shares) | shares | 82,862 | |||||
Dividend rate | 0.00% | |||||
Liquidation value per share (in dollars per share) | $ 475 | |||||
Original cost | $ | $ 39,359 | |||||
Purchase price (in dollars per share) | $ 475 | |||||
Preferred stock, par value (in dollars per share) | $ 0 | |||||
Preferred stock, outstanding (in shares) | shares | 82,862 | |||||
Series C Cumulative Perpetual Convertible Preferred Shares [Member] | Subsequent Event [Member] | ||||||
Schedule of preferred equity issues under capital purchase program [Abstract] | ||||||
Preferred stock converted in common stock (in shares) | shares | 8,286,200 | |||||
Preferred stock, conversion price (in dollars per share) | $ 4.75 | |||||
Common Stock [Member] | ||||||
Schedule of preferred equity issues under capital purchase program [Abstract] | ||||||
Common stock, issued (in shares) | shares | 2,661,239 | |||||
Common stock, par value (in dollars per share) | $ 0 | |||||
Purchase price (in dollars per share) | $ 4.75 |
Litigation (Details)
Litigation (Details) $ in Thousands | Apr. 29, 2016USD ($) | Sep. 28, 2015USD ($) | Sep. 01, 2015Suit |
Loss Contingencies [Line Items] | |||
Number of suits seeking coverage and reimbursement from the insurance carriers | Suit | 3 | ||
Securities and Exchange Commission [Member] | |||
Loss Contingencies [Line Items] | |||
Litigation settlement amount | $ 1,500 | ||
First American Title [Member] | |||
Loss Contingencies [Line Items] | |||
Litigation settlement amount | $ 150 |
Derivative Financial Instrume78
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Financial Instruments [Abstract] | ||
Period under interest rate lock commitment contract | 60 days | |
Customer Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative financial instruments, notional amount | $ 0 | $ 5,100 |
FNMA Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative financial instruments, notional amount | 0 | 8,100 |
Fair value commitment assets | $ 0 | $ 225 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Number of years net income plus retained income taken for dividend payment | 2 years | |
Total capital (to risk-weighted assets), Amount [Abstract] | ||
Actual | $ 178,906 | $ 128,272 |
For capital adequacy purposes | $ 71,381 | $ 72,774 |
Total capital (to risk-weighted assets), Ratio [Abstract] | ||
Actual | 20.0509% | 14.10% |
For capital adequacy purposes | 8.00% | 8.00% |
Tier 1 capital (risk-weighted assets), Amount [Abstract] | ||
Amount | $ 167,290 | $ 101,263 |
For capital adequacy purposes | $ 53,536 | $ 54,580 |
Tier 1 capital (to risk-weighted assets), Ratio [Abstract] | ||
Actual | 18.749% | 11.13% |
For capital adequacy purposes | 6.00% | 6.00% |
Common Equity Tier 1 Capital (to risk weighted assets), Amount [Abstract] | ||
Amount | $ 60,840 | $ 44,080 |
For capital adequacy purposes | $ 40,152 | $ 40,935 |
Common Equity Tier 1 Capital (to risk weighted assets), Ratio [Abstract] | ||
Actual | 6.8186% | 4.85% |
For capital adequacy purposes | 4.50% | 4.50% |
Tier 1 leverage capital (to average assets), Amount [Abstract] | ||
Actual | $ 167,290 | $ 101,263 |
For capital adequacy purposes | $ 35,690 | $ 56,943 |
Tier 1 capital (to average assets), Ratio [Abstract] | ||
Actual | 12.012% | 7.11% |
For capital adequacy purposes | 4.00% | 4.00% |
Bank Only [Member] | ||
Total capital (to risk-weighted assets), Amount [Abstract] | ||
Actual | $ 137,873 | $ 141,486 |
For capital adequacy purposes | 71,719 | 72,452 |
To be well capitalized under prompt corrective action provisions | 89,649 | 90,565 |
Minimum levels under order provisions | $ 98,614 | $ 99,621 |
Total capital (to risk-weighted assets), Ratio [Abstract] | ||
Actual | 15.3793% | 15.62% |
For capital adequacy purposes | 8.00% | 8.00% |
To be well capitalized under prompt corrective action provisions | 10.00% | 10.00% |
Minimum levels under order provisions | 11.00% | 11.00% |
Tier 1 capital (risk-weighted assets), Amount [Abstract] | ||
Amount | $ 126,598 | $ 130,084 |
For capital adequacy purposes | 53,789 | 54,339 |
To be well capitalized under prompt corrective action provisions | $ 71,719 | $ 72,452 |
Tier 1 capital (to risk-weighted assets), Ratio [Abstract] | ||
Actual | 14.1216% | 14.36% |
For capital adequacy purposes | 6.00% | 6.00% |
To be well capitalized under prompt corrective action provisions | 8.00% | 8.00% |
Common Equity Tier 1 Capital (to risk weighted assets), Amount [Abstract] | ||
Amount | $ 126,598 | $ 130,084 |
For capital adequacy purposes | 40,342 | 40,754 |
To be well capitalized under prompt corrective action provisions | $ 58,272 | $ 58,867 |
Common Equity Tier 1 Capital (to risk weighted assets), Ratio [Abstract] | ||
Actual | 14.1216% | 14.36% |
For capital adequacy purposes | 4.50% | 4.50% |
To be well capitalized under prompt corrective action provisions | 6.50% | 6.50% |
Tier 1 leverage capital (to average assets), Amount [Abstract] | ||
Actual | $ 126,598 | $ 130,084 |
For capital adequacy purposes | 35,859 | 56,685 |
To be well capitalized under prompt corrective action provisions | 44,824 | 70,856 |
Minimum levels under order provisions | $ 71,719 | $ 113,370 |
Tier 1 capital (to average assets), Ratio [Abstract] | ||
Actual | 9.1596% | 9.18% |
For capital adequacy purposes | 4.00% | 4.00% |
To be well capitalized under prompt corrective action provisions | 5.00% | 5.00% |
Minimum levels under order provisions | 8.00% | 8.00% |
Capital Conservation Buffer [Abstract] | ||
Capital conservation buffer | 7.3793% | |
Consolidated capital conservation buffer | 2.3186% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment securities available for sale [Abstract] | |||
Financial liabilities | $ 0 | $ 0 | |
Fair value, Liabilities, Level 2 to Level 1 transfers | 0 | 0 | |
Fair value, Assets, Level 1 to Level 2 transfers | 0 | 0 | |
Fair value, Assets, Level 2 to Level 1 transfers | 0 | 0 | |
Fair value, Liabilities, Level 1 to Level 2 transfers | 0 | 0 | |
Carrying value of impaired loans | 34,600 | 40,700 | |
Impaired loans, valuation allowance | 3,000 | 4,200 | |
Write-down of OREO | 63 | 361 | |
Financial Assets [Abstract] | |||
Impaired loans | 53,786 | 81,423 | |
MSRs | 6,900 | 6,900 | $ 7,500 |
Recurring [Member] | |||
Investment securities available for sale [Abstract] | |||
U.S. Government sponsored agencies | 68,828 | 69,584 | |
States and political subdivision | 37,343 | 3,576 | |
Residential mortgage-backed security | 203,819 | 121,597 | |
Residential collateralized mortgage obligation | 14,816 | 39,921 | |
Commercial mortgage backed security | 114,172 | 41,119 | |
SBA pool | 672 | 750 | |
Asset backed securities | 39,493 | ||
Interest rate lock commitments, mandatory forward delivery commitments and pair offs | 225 | ||
Total | 439,650 | 316,265 | |
Recurring [Member] | Level 1 [Member] | |||
Investment securities available for sale [Abstract] | |||
U.S. Government sponsored agencies | 0 | 0 | |
States and political subdivision | 0 | 0 | |
Residential mortgage-backed security | 0 | 0 | |
Residential collateralized mortgage obligation | 0 | 0 | |
Commercial mortgage backed security | 0 | 0 | |
SBA pool | 0 | 0 | |
Asset backed securities | 0 | ||
Interest rate lock commitments, mandatory forward delivery commitments and pair offs | 0 | ||
Total | 0 | 0 | |
Recurring [Member] | Level 2 [Member] | |||
Investment securities available for sale [Abstract] | |||
U.S. Government sponsored agencies | 68,828 | 69,584 | |
States and political subdivision | 37,343 | 3,576 | |
Residential mortgage-backed security | 203,819 | 121,597 | |
Residential collateralized mortgage obligation | 14,816 | 39,921 | |
Commercial mortgage backed security | 114,172 | 41,119 | |
SBA pool | 672 | 750 | |
Asset backed securities | 39,493 | ||
Interest rate lock commitments, mandatory forward delivery commitments and pair offs | 225 | ||
Total | 439,650 | 316,265 | |
Recurring [Member] | Level 3 [Member] | |||
Investment securities available for sale [Abstract] | |||
U.S. Government sponsored agencies | 0 | 0 | |
States and political subdivision | 0 | 0 | |
Residential mortgage-backed security | 0 | 0 | |
Residential collateralized mortgage obligation | 0 | 0 | |
Commercial mortgage backed security | 0 | 0 | |
SBA pool | 0 | 0 | |
Asset backed securities | 0 | ||
Interest rate lock commitments, mandatory forward delivery commitments and pair offs | 0 | ||
Total | 0 | 0 | |
Nonrecurring [Member] | |||
Financial Assets [Abstract] | |||
Impaired loans | 31,636 | 36,870 | |
MSRs | 6,905 | 6,905 | |
Non-Financial Assets [Abstract] | |||
OREO | 582 | 2,231 | |
Nonrecurring [Member] | Level 1 [Member] | |||
Financial Assets [Abstract] | |||
Impaired loans | 0 | 0 | |
MSRs | 0 | 0 | |
Non-Financial Assets [Abstract] | |||
OREO | 0 | 0 | |
Nonrecurring [Member] | Level 2 [Member] | |||
Financial Assets [Abstract] | |||
Impaired loans | 0 | 0 | |
MSRs | 0 | 0 | |
Non-Financial Assets [Abstract] | |||
OREO | 0 | 0 | |
Nonrecurring [Member] | Level 3 [Member] | |||
Financial Assets [Abstract] | |||
Impaired loans | 31,636 | 36,870 | |
MSRs | 6,905 | 6,905 | |
Non-Financial Assets [Abstract] | |||
OREO | $ 582 | $ 2,231 |
Fair Value Measurements, Assets
Fair Value Measurements, Assets, Quantitative Information (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Impaired Loans Commercial [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 13,638 | $ 14,557 |
Impaired Loans Commercial Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | 5,465 | 9,755 |
Impaired Loans Residential Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | 7,174 | 8,624 |
Impaired Loans Construction Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | 5,014 | 3,436 |
Impaired Loans Installment and Other [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | 345 | 498 |
Impaired Loans [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | 31,636 | 36,870 |
Other Real Estate Owned Commercial Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | 217 | |
Other Real Estate Owned Residential Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | 483 | 1,493 |
Other Real Estate Owned Construction Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | 99 | 521 |
Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 582 | $ 2,231 |
Sales Comparison [Member] | Minimum [Member] | Impaired Loans Commercial [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 0.00% | 0.00% |
Sales Comparison [Member] | Minimum [Member] | Impaired Loans Commercial Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 4.25% | 4.25% |
Sales Comparison [Member] | Minimum [Member] | Impaired Loans Residential Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 3.13% | 0.00% |
Sales Comparison [Member] | Minimum [Member] | Impaired Loans Construction Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 4.00% | 4.00% |
Sales Comparison [Member] | Minimum [Member] | Impaired Loans Installment and Other [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 0.00% | 4.13% |
Sales Comparison [Member] | Minimum [Member] | Other Real Estate Owned Commercial Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 14.55% | |
Sales Comparison [Member] | Minimum [Member] | Other Real Estate Owned Residential Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 3.16% | 8.47% |
Sales Comparison [Member] | Minimum [Member] | Other Real Estate Owned Construction Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 12.00% | 10.70% |
Sales Comparison [Member] | Maximum [Member] | Impaired Loans Commercial [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 7.75% | 13.92% |
Sales Comparison [Member] | Maximum [Member] | Impaired Loans Commercial Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 7.62% | 7.62% |
Sales Comparison [Member] | Maximum [Member] | Impaired Loans Residential Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 37.50% | 8.70% |
Sales Comparison [Member] | Maximum [Member] | Impaired Loans Construction Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 7.50% | 7.50% |
Sales Comparison [Member] | Maximum [Member] | Impaired Loans Installment and Other [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 37.50% | 9.50% |
Sales Comparison [Member] | Maximum [Member] | Other Real Estate Owned Commercial Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 14.55% | |
Sales Comparison [Member] | Maximum [Member] | Other Real Estate Owned Residential Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 11.76% | 91.19% |
Sales Comparison [Member] | Maximum [Member] | Other Real Estate Owned Construction Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 12.00% | 67.45% |
Sales Comparison [Member] | Weighted Average [Member] | Impaired Loans Commercial [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 5.79% | 5.70% |
Sales Comparison [Member] | Weighted Average [Member] | Impaired Loans Commercial Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 5.96% | 5.65% |
Sales Comparison [Member] | Weighted Average [Member] | Impaired Loans Residential Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 6.73% | 5.29% |
Sales Comparison [Member] | Weighted Average [Member] | Impaired Loans Construction Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 5.79% | 6.14% |
Sales Comparison [Member] | Weighted Average [Member] | Impaired Loans Installment and Other [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 7.70% | 6.52% |
Sales Comparison [Member] | Weighted Average [Member] | Other Real Estate Owned Commercial Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 14.55% | |
Sales Comparison [Member] | Weighted Average [Member] | Other Real Estate Owned Residential Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 9.29% | 21.76% |
Sales Comparison [Member] | Weighted Average [Member] | Other Real Estate Owned Construction Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences of comparable sales | 12.00% | 57.32% |
Fair Value Measurements, Estima
Fair Value Measurements, Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2013 |
Financial assets [Abstract] | |||
Cash and due from banks | $ 13,537 | $ 13,506 | |
Interest-bearing deposits with banks | 105,798 | 151,049 | |
Investments [Abstract] | |||
Available for sale | 439,650 | 316,040 | |
Held to maturity | 8,824 | 8,986 | |
Non-marketable equity securities | 3,812 | 3,854 | |
Loans held for sale | 0 | 3,041 | |
Loans, net | 771,138 | 822,396 | |
Financial liabilities [Abstract] | |||
Non-interest bearing deposits | 28,301 | 75,867 | |
Interest bearing deposits | 1,186,788 | 1,178,091 | |
Long-term borrowings | 2,300 | 2,300 | |
Junior subordinated debenture | 37,116 | 37,116 | $ 37,100 |
Level 1 [Member] | |||
Financial assets [Abstract] | |||
Cash and due from banks | 13,537 | 13,506 | |
Interest-bearing deposits with banks | 105,798 | 151,049 | |
Securities purchased under resell agreements | 24,320 | ||
Investments [Abstract] | |||
Available for sale | 0 | 0 | |
Held to maturity | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
Accrued interest receivable on securities | 0 | 0 | |
Accrued interest receivable on loans | 0 | 0 | |
Accrued interest receivable other | 0 | 0 | |
Interest rate lock commitments, mandatory forward delivery commitments and pair offs | 0 | ||
Off-balance-sheet instruments [Abstract] | |||
Loan commitments and standby letters of credit | 0 | 0 | |
Financial liabilities [Abstract] | |||
Non-interest bearing deposits | 28,301 | 75,867 | |
Interest bearing deposits | 0 | 0 | |
Long-term borrowings | 0 | 0 | |
Junior subordinated debenture | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Level 2 [Member] | |||
Financial assets [Abstract] | |||
Cash and due from banks | 0 | 0 | |
Interest-bearing deposits with banks | 0 | 0 | |
Securities purchased under resell agreements | 0 | ||
Investments [Abstract] | |||
Available for sale | 439,650 | 316,040 | |
Held to maturity | 8,613 | 8,988 | |
Loans held for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
Accrued interest receivable on securities | 1,873 | 1,028 | |
Accrued interest receivable on loans | 0 | 0 | |
Accrued interest receivable other | 0 | 0 | |
Interest rate lock commitments, mandatory forward delivery commitments and pair offs | 225 | ||
Off-balance-sheet instruments [Abstract] | |||
Loan commitments and standby letters of credit | 26 | 20 | |
Financial liabilities [Abstract] | |||
Non-interest bearing deposits | 0 | 0 | |
Interest bearing deposits | 1,194,233 | 1,176,958 | |
Long-term borrowings | 2,698 | 2,642 | |
Junior subordinated debenture | 0 | 0 | |
Accrued interest payable | 270 | 452 | |
Level 3 [Member] | |||
Financial assets [Abstract] | |||
Cash and due from banks | 0 | 0 | |
Interest-bearing deposits with banks | 0 | 0 | |
Securities purchased under resell agreements | 0 | ||
Investments [Abstract] | |||
Available for sale | 0 | 0 | |
Held to maturity | 0 | 0 | |
Loans held for sale | 0 | 3,041 | |
Loans, net | 770,254 | 830,555 | |
Accrued interest receivable on securities | 0 | 0 | |
Accrued interest receivable on loans | 3,874 | 3,795 | |
Accrued interest receivable other | 296 | 208 | |
Interest rate lock commitments, mandatory forward delivery commitments and pair offs | 0 | ||
Off-balance-sheet instruments [Abstract] | |||
Loan commitments and standby letters of credit | 0 | 0 | |
Financial liabilities [Abstract] | |||
Non-interest bearing deposits | 0 | 0 | |
Interest bearing deposits | 0 | 0 | |
Long-term borrowings | 0 | 0 | |
Junior subordinated debenture | 20,582 | 20,461 | |
Accrued interest payable | 9,849 | 6,918 | |
Carrying Amount [Member] | |||
Financial assets [Abstract] | |||
Cash and due from banks | 13,537 | 13,506 | |
Interest-bearing deposits with banks | 105,798 | 151,049 | |
Securities purchased under resell agreements | 24,320 | ||
Investments [Abstract] | |||
Available for sale | 439,650 | 316,040 | |
Held to maturity | 8,824 | 8,986 | |
Non-marketable equity securities | 3,812 | 3,854 | |
Loans held for sale | 0 | 3,041 | |
Loans, net | 771,138 | 822,396 | |
Accrued interest receivable on securities | 1,873 | 1,028 | |
Accrued interest receivable on loans | 3,874 | 3,795 | |
Accrued interest receivable other | 296 | 208 | |
Interest rate lock commitments, mandatory forward delivery commitments and pair offs | 225 | ||
Off-balance-sheet instruments [Abstract] | |||
Loan commitments and standby letters of credit | 26 | 20 | |
Financial liabilities [Abstract] | |||
Non-interest bearing deposits | 28,301 | 75,867 | |
Interest bearing deposits | 1,186,788 | 1,178,091 | |
Long-term borrowings | 2,300 | 2,300 | |
Junior subordinated debenture | 37,116 | 37,116 | |
Accrued interest payable | 10,119 | 7,370 | |
Fair Value [Member] | |||
Financial assets [Abstract] | |||
Cash and due from banks | 13,537 | 13,506 | |
Interest-bearing deposits with banks | 105,798 | 151,049 | |
Securities purchased under resell agreements | 24,320 | ||
Investments [Abstract] | |||
Available for sale | 439,650 | 316,040 | |
Held to maturity | 8,613 | 8,988 | |
Loans held for sale | 0 | 3,041 | |
Loans, net | 770,254 | 830,555 | |
Accrued interest receivable on securities | 1,873 | 1,028 | |
Accrued interest receivable on loans | 3,874 | 3,795 | |
Accrued interest receivable other | 296 | 208 | |
Interest rate lock commitments, mandatory forward delivery commitments and pair offs | 225 | ||
Off-balance-sheet instruments [Abstract] | |||
Loan commitments and standby letters of credit | 26 | 20 | |
Financial liabilities [Abstract] | |||
Non-interest bearing deposits | 28,301 | 75,867 | |
Interest bearing deposits | 1,194,233 | 1,176,958 | |
Long-term borrowings | 2,698 | 2,642 | |
Junior subordinated debenture | 20,582 | 20,461 | |
Accrued interest payable | $ 10,119 | $ 7,370 |
Other Noninterest Expense (Deta
Other Noninterest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Noninterest Expense [Abstract] | |||
Threshold percentage for components to be shown separately | 1.00% | ||
Other noninterest expenses [Abstract] | |||
Marketing | $ 1,067 | $ 1,335 | $ 1,119 |
Supplies | 794 | 486 | 444 |
Postage | 639 | 648 | 748 |
FDIC insurance premiums | 2,250 | 3,087 | 3,211 |
Collection expenses | 746 | 834 | 1,217 |
Other | 4,988 | 3,443 | 4,713 |
Total noninterest expenses | $ 10,484 | $ 9,833 | $ 11,452 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | Mar. 27, 2009 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 02, 2017 | Jun. 30, 2013 |
Subsequent Event [Line Items] | |||||||
Purchase price in cash | $ 37,089 | $ 0 | $ 0 | ||||
Junior subordinated debenture | $ 37,116 | $ 37,116 | $ 37,100 | ||||
Series A Preferred Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, issued (in shares) | 35,539 | 35,539 | 35,539 | ||||
Purchase price in cash | $ 35,500 | ||||||
Preferred stock, outstanding (in shares) | 35,539 | 35,539 | |||||
Series B Preferred Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, issued (in shares) | 1,777 | 1,777 | 1,777 | ||||
Preferred stock, outstanding (in shares) | 1,777 | 1,777 | |||||
Series C Preferred Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, issued (in shares) | 82,862 | ||||||
Preferred stock, outstanding (in shares) | 82,862 | ||||||
Trust Preferred Securities [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Junior subordinated debenture | $ 37,100 | ||||||
Accrued interest and unpaid | $ 9,800 | $ 6,900 | |||||
Subsequent Event [Member] | Series C Preferred Stock [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Preferred stock, converted into non-voting common stock (in shares) | 8,286,200 | ||||||
Subsequent Event [Member] | Trust Preferred Securities [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Proceeds from dividend from bank | $ 15,000 |
Condensed Parent Company Fina85
Condensed Parent Company Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | |
Assets [Abstract] | |||||
Other assets | $ 31,376 | $ 17,192 | |||
Total assets | 1,425,626 | 1,398,985 | |||
Liabilities and Stockholders' Equity [Abstract] | |||||
Junior subordinated debt owed to unconsolidated trusts | 37,116 | 37,116 | $ 37,100 | ||
Other liabilities | 33,822 | 26,621 | |||
Stock owned by Employee Stock Ownership Plan (ESOP) participants | 3,192 | 2,690 | |||
Stockholders' equity | 134,107 | 76,300 | $ 81,003 | $ 88,710 | |
Total liabilities and stockholders' equity | 1,425,626 | 1,398,985 | |||
Statements of Operations [Abstract] | |||||
Income (loss) before provision for income taxes | 2,437 | 1,914 | (4,822) | ||
Income tax benefit | 13,676 | 0 | (1,170) | ||
Net income (loss) | 16,113 | 1,914 | (5,992) | ||
Dividends and discount accretion on preferred shares | 4,272 | 3,803 | 3,230 | ||
Net income (loss) available to common shareholders | 11,841 | (1,889) | (9,222) | ||
Cash Flows From Operating Activities [Abstract] | |||||
Net income (loss) | 16,113 | 1,914 | (5,992) | ||
Adjustments to reconcile net income (loss) to net cash used in operating activities | |||||
Decrease (increase) in other assets | 2,206 | 13,560 | 3,493 | ||
Decrease in other liabilities | 2,929 | 1,527 | 2,661 | ||
Net cash provided by operating activities | 15,818 | 22,092 | 5,050 | ||
Cash Flows From Investing Activities [Abstract] | |||||
Net cash (used in) provided by investing activities | (95,588) | (32,178) | 51,522 | ||
Cash Flows from Financing Activities [Abstract] | |||||
Issuance of Preferred C stock for capital raise | 37,089 | 0 | 0 | ||
Issuance of Common stock for capital raise | 11,872 | 0 | 0 | ||
Net cash (used in) financing activities | 10,230 | (48,437) | (100,372) | ||
Net decrease in cash and cash equivalents | (69,540) | (58,523) | (43,800) | ||
Cash [Abstract] | |||||
Beginning of period | 188,875 | 247,398 | 291,198 | ||
End of period | 119,335 | 188,875 | 247,398 | ||
Parent Company [Member] | |||||
Assets [Abstract] | |||||
Cash | 64,336 | 707 | |||
Investments in subsidiaries | 126,767 | 128,627 | |||
Other assets | 11,047 | 7,944 | |||
Total assets | 202,150 | 137,278 | |||
Liabilities and Stockholders' Equity [Abstract] | |||||
Dividends payable | 12,965 | 8,693 | |||
Junior subordinated debt owed to unconsolidated trusts | 37,116 | 37,116 | |||
Other liabilities | 14,769 | 12,479 | |||
Stock owned by Employee Stock Ownership Plan (ESOP) participants | 3,192 | 2,690 | |||
Stockholders' equity | 134,108 | 76,300 | |||
Total liabilities and stockholders' equity | 202,150 | 137,278 | |||
Statements of Operations [Abstract] | |||||
Dividends from subsidiaries | 15,000 | 0 | 0 | ||
Interest and other income | 190 | 161 | 475 | ||
Interest and other expense | (3,799) | (3,152) | (3,320) | ||
Income (loss) before provision for income taxes | 11,391 | (2,991) | (2,845) | ||
Income tax benefit | 3,657 | 0 | 0 | ||
Loss before equity in undistributed net income of subsidiaries | 15,048 | (2,991) | (2,845) | ||
Equity in undistributed net income (loss) of subsidiaries | 1,065 | 4,905 | (3,147) | ||
Net income (loss) | 16,113 | 1,914 | (5,992) | ||
Dividends and discount accretion on preferred shares | 4,272 | 3,803 | 3,230 | ||
Net income (loss) available to common shareholders | 11,841 | (1,889) | (9,222) | ||
Cash Flows From Operating Activities [Abstract] | |||||
Net income (loss) | 16,113 | 1,914 | (5,992) | ||
Adjustments to reconcile net income (loss) to net cash used in operating activities | |||||
Amortization of junior subordinated debt owed to unconsolidated trusts issuance costs | 14 | 14 | 14 | ||
Equity in undistributed net income (loss) of subsidiaries | (1,065) | (4,905) | 3,147 | ||
Decrease in taxes payable to subsidiaries | 797 | 9,051 | 1,139 | ||
Decrease in taxes receivable | (797) | (9,051) | (1,139) | ||
Gain on sale of subsidiary | 0 | 0 | (56) | ||
Decrease (increase) in other assets | (2,320) | 18,087 | 1,967 | ||
Decrease in other liabilities | (1,437) | (18,442) | (1,632) | ||
Increase in sub debt accrued interest payable | 2,842 | 2,559 | 2,340 | ||
Sale of subsidiary | 0 | 0 | (111) | ||
Tax benefit recognized for exercise of stock options | 0 | 0 | 0 | ||
Net cash provided by operating activities | 14,147 | (773) | (323) | ||
Cash Flows From Investing Activities [Abstract] | |||||
Investments in and advances to subsidiaries | 300 | (100) | 290 | ||
Net cash (used in) provided by investing activities | 300 | (100) | 290 | ||
Cash Flows from Financing Activities [Abstract] | |||||
Issuance of treasury stock | 138 | 198 | 100 | ||
Issuance of Common stock for capital raise | 2,889 | 0 | 0 | ||
2016 granted RSUs expenses | 83 | 0 | 0 | ||
Preferred shares dividend payments | 0 | 0 | 0 | ||
Net cash (used in) financing activities | 49,182 | 198 | 100 | ||
Net decrease in cash and cash equivalents | 63,629 | (675) | 67 | ||
Cash [Abstract] | |||||
Beginning of period | 707 | 1,382 | 1,315 | ||
End of period | 64,336 | 707 | 1,382 | ||
Parent Company [Member] | Series C Preferred Stock [Member] | |||||
Cash Flows from Financing Activities [Abstract] | |||||
Issuance of treasury stock | 8,983 | 0 | 0 | ||
Issuance of Preferred C stock for capital raise | $ 37,089 | $ 0 | $ 0 |