x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
001-37505 |
Illinois | 20-4718752 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
2801 Black Road, Joliet, IL | 60435 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer x | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Page | ||
First Community Financial Partners, Inc. and Subsidiaries | ||||||
Consolidated Balance Sheets | ||||||
March 31, 2016 | December 31, 2015 | |||||
Assets | (in thousands, except per share data) (March 31, 2016 data is unaudited) | |||||
Cash and due from banks | $ | 9,132 | $ | 10,699 | ||
Interest-bearing deposits in banks | 30,558 | 7,406 | ||||
Securities available for sale | 203,874 | 205,604 | ||||
Non-marketable equity securities | 1,367 | 1,367 | ||||
Mortgage loans held for sale | 133 | 400 | ||||
Loans, net of allowance for loan losses of $11,335 in 2016; $11,741 in 2015 | 762,938 | 760,578 | ||||
Premises and equipment, net | 18,302 | 18,529 | ||||
Foreclosed assets | 5,231 | 5,487 | ||||
Cash surrender value of life insurance | 16,703 | 16,561 | ||||
Deferred tax asset, net | 7,574 | 9,191 | ||||
Accrued interest receivable and other assets | 5,050 | 4,830 | ||||
Total assets | $ | 1,060,862 | $ | 1,040,652 | ||
Liabilities and Shareholders’ Equity | ||||||
Liabilities | ||||||
Deposits | ||||||
Noninterest bearing | $ | 204,414 | $ | 196,063 | ||
Interest bearing | 674,566 | 669,928 | ||||
Total deposits | 878,980 | 865,991 | ||||
Other borrowed funds | 56,937 | 53,015 | ||||
Subordinated debt | 15,300 | 15,300 | ||||
Accrued interest payable and other liabilities | 2,855 | 3,305 | ||||
Total liabilities | 954,072 | 937,611 | ||||
Concentrations, Commitments and Contingencies (Note 9) | ||||||
First Community Financial Partners, Inc. Shareholders’ Equity | ||||||
Common stock, $1.00 par value; 60,000,000 shares authorized; 17,175,864 issued and outstanding at March 31, 2016 and 17,026,941 issued and outstanding at December 31, 2015 | 17,176 | 17,027 | ||||
Additional paid-in capital | 82,491 | 82,211 | ||||
Retained earnings | 4,828 | 2,800 | ||||
Accumulated other comprehensive income | 2,295 | 1,003 | ||||
Total shareholders' equity | 106,790 | 103,041 | ||||
Total liabilities and shareholders' equity | $ | 1,060,862 | $ | 1,040,652 | ||
See Notes to Unaudited Consolidated Financial Statements. |
First Community Financial Partners, Inc. and Subsidiaries | ||||||
Consolidated Statements of Operations | ||||||
Three months ended March 31, | ||||||
2016 | 2015 | |||||
Interest income: | (in thousands, except share data)(unaudited) | |||||
Loans, including fees | $ | 8,508 | $ | 7,815 | ||
Securities | 1,101 | 951 | ||||
Federal funds sold and other | 19 | 13 | ||||
Total interest income | 9,628 | 8,779 | ||||
Interest expense: | ||||||
Deposits | 940 | 977 | ||||
Federal funds purchased and other borrowed funds | 93 | 14 | ||||
Subordinated debt | 297 | 603 | ||||
Total interest expense | 1,330 | 1,594 | ||||
Net interest income | 8,298 | 7,185 | ||||
Provision for loan losses | — | — | ||||
Net interest income after provision for loan losses | 8,298 | 7,185 | ||||
Noninterest income: | ||||||
Service charges on deposit accounts | 204 | 183 | ||||
Gain on sale of securities | — | 21 | ||||
Mortgage fee income | 78 | 103 | ||||
Other | 273 | 138 | ||||
555 | 445 | |||||
Noninterest expenses: | ||||||
Salaries and employee benefits | 3,256 | 2,884 | ||||
Occupancy and equipment expense | 437 | 492 | ||||
Data processing | 257 | 224 | ||||
Professional fees | 392 | 380 | ||||
Advertising and business development | 215 | 189 | ||||
Losses on sale and writedowns of foreclosed assets, net | 16 | — | ||||
Foreclosed assets expenses, net of rental income | 53 | 72 | ||||
Other expense | 1,310 | 916 | ||||
5,936 | 5,157 | |||||
Income before income taxes | 2,917 | 2,473 | ||||
Income taxes | 889 | 867 | ||||
Net income applicable to common shareholders | $ | 2,028 | $ | 1,606 | ||
Common share data | ||||||
Basic earnings per common share | $ | 0.12 | $ | 0.10 | ||
Diluted earnings per common share | 0.12 | 0.09 | ||||
Weighted average common shares outstanding for basic earnings per common share | 17,125,928 | 16,768,908 | ||||
Weighted average common shares outstanding for diluted earnings per common share | 17,451,354 | 16,958,466 | ||||
See Notes to Unaudited Consolidated Financial Statements. |
First Community Financial Partners, Inc. and Subsidiaries | ||||||
Consolidated Statements of Comprehensive Income | ||||||
Three months ended March 31, | ||||||
2016 | 2015 | |||||
(in thousands)(unaudited) | ||||||
Net income | $ | 2,028 | $ | 1,606 | ||
Unrealized holding gains on investment securities | 2,116 | 1,705 | ||||
Reclassification adjustments for gains included in net income | — | (21 | ) | |||
Tax effect of realized and unrealized gains and losses on investment securities | (824 | ) | (657 | ) | ||
Other comprehensive income, net of tax | 1,292 | 1,027 | ||||
Comprehensive income | $ | 3,320 | $ | 2,633 | ||
See Notes to Unaudited Consolidated Financial Statements. |
First Community Financial Partners, Inc. and Subsidiaries | ||||||||||||||||
Consolidated Statements of Changes in Shareholders’ Equity | ||||||||||||||||
Three months ended March 31, 2016 and 2015 | ||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained earnings (accumulated deficit) | Accumulated Other Comprehensive Income | Total | ||||||||||||
(in thousands, except share data)(unaudited) | ||||||||||||||||
Balance, December 31, 2014 | $ | 16,668 | $ | 81,648 | $ | (7,019 | ) | $ | 756 | $ | 92,053 | |||||
Net income | — | — | 1,606 | — | 1,606 | |||||||||||
Other comprehensive income, net of tax | — | — | — | 1,027 | 1,027 | |||||||||||
Issuance of 302,719 shares of common stock for restricted stock awards and amortization | 303 | (297 | ) | — | — | 6 | ||||||||||
Stock based compensation expense | — | 226 | — | — | 226 | |||||||||||
Balance, March 31, 2015 | $ | 16,971 | $ | 81,577 | $ | (5,413 | ) | $ | 1,783 | $ | 94,918 | |||||
Balance, December 31, 2015 | $ | 17,027 | $ | 82,211 | $ | 2,800 | $ | 1,003 | $ | 103,041 | ||||||
Net income | — | — | 2,028 | — | 2,028 | |||||||||||
Other comprehensive income, net of tax | — | — | — | 1,292 | 1,292 | |||||||||||
Issuance of 129,573 shares of common stock for restricted stock awards and amortization | 129 | (143 | ) | — | — | (14 | ) | |||||||||
Issuance of 3,750 shares of common stock for exercise of warrants | 4 | 4 | — | — | 8 | |||||||||||
Reclass of warrants upon redemption of subordinated debt, net of amortization | 16 | 83 | — | — | 99 | |||||||||||
Tax windfall benefit | — | 88 | — | — | 88 | |||||||||||
Stock based compensation expense | — | 248 | — | — | 248 | |||||||||||
Balance, March 31, 2016 | $ | 17,176 | $ | 82,491 | $ | 4,828 | $ | 2,295 | $ | 106,790 | ||||||
See Notes to Unaudited Consolidated Financial Statements. |
First Community Financial Partners, Inc. and Subsidiaries | ||||||
Consolidated Statements of Cash Flows | ||||||
Three months ended March 31, | ||||||
2016 | 2015 | |||||
(in thousands)(unaudited) | ||||||
Cash Flows From Operating Activities | ||||||
Net income applicable to First Community Financial Partners, Inc. | $ | 2,028 | $ | 1,606 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Net amortization of securities | 539 | 417 | ||||
Losses on sales of foreclosed assets, net | 16 | — | ||||
Net accretion (amortization) of deferred loan fees | 87 | (26 | ) | |||
Warrant accretion | — | 6 | ||||
Depreciation and amortization of premises and equipment | 336 | 321 | ||||
Realized gains on sales of available for sale securities, net | — | (21 | ) | |||
Increase in cash surrender value of life insurance | (142 | ) | (32 | ) | ||
Deferred income taxes | 793 | 1,218 | ||||
Net decrease (increase) in mortgage loans held for sale | 267 | (991 | ) | |||
Increase in accrued interest receivable and other assets | (220 | ) | (2,935 | ) | ||
(Decrease) increase in accrued interest payable and other liabilities | (269 | ) | 1,196 | |||
Restricted stock compensation expense | 203 | 206 | ||||
Stock option compensation expense | 45 | 20 | ||||
Net cash provided by operating activities | 3,683 | 985 | ||||
Cash Flows From Investing Activities | ||||||
Net change in interest bearing deposits in banks | (23,152 | ) | 9,575 | |||
Activity in available for sale securities: | ||||||
Purchases | — | (25,988 | ) | |||
Maturities, prepayments and calls | 3,307 | 4,120 | ||||
Sales | — | 2,301 | ||||
Net increase in loans | (2,447 | ) | (22,763 | ) | ||
Purchases of premises and equipment | (109 | ) | (43 | ) | ||
Proceeds from sale of foreclosed assets | 240 | — | ||||
Net cash used in investing activities | (22,161 | ) | (32,798 | ) | ||
Cash Flows From Financing Activities | ||||||
Net increase in deposits | 12,989 | 31,718 | ||||
Net increase (decrease) in other borrowings | 3,922 | (715 | ) | |||
Net cash provided by financing activities | 16,911 | 31,003 | ||||
Net change in cash and due from banks | (1,567 | ) | (810 | ) | ||
Cash and due from banks: | ||||||
Beginning | 10,699 | 13,329 | ||||
Ending | $ | 9,132 | $ | 12,519 |
Supplemental Disclosures of Cash Flow Information | ||||||
Cash payments for interest | $ | 1,507 | $ | 2,173 | ||
Supplemental Schedule of Noncash Investing and Financing Activities | ||||||
Transfer of loans to foreclosed assets | — | 20 | ||||
See Notes to Unaudited Consolidated Financial Statements. |
Note 1. | Basis of Presentation |
Note 2. | Earnings Per Share |
Three months ended March 31, | ||||||
2016 | 2015 | |||||
Net income allocated to common stock | $ | 2,028 | $ | 1,606 | ||
Weighted average shares outstanding for basic earnings per common share | 17,125,928 | 16,768,908 | ||||
Dilutive effect of stock-based compensation and warrants | 325,426 | 189,558 | ||||
Weighted average shares outstanding for diluted earnings per common share | 17,451,354 | 16,958,466 | ||||
Basic income per common share | $ | 0.12 | $ | 0.10 | ||
Diluted income per common share | 0.12 | 0.09 |
Note 3. | Securities Available for Sale |
March 31, 2016 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||
Government sponsored enterprises | $ | 16,244 | $ | 307 | $ | — | $ | 16,551 | ||||
Residential collateralized mortgage obligations | 61,474 | 875 | 15 | 62,334 | ||||||||
Residential mortgage backed securities | 27,675 | 94 | 72 | 27,697 | ||||||||
State and political subdivisions | 94,720 | 2,606 | 34 | 97,292 | ||||||||
$ | 200,113 | $ | 3,882 | $ | 121 | $ | 203,874 | |||||
December 31, 2015 | ||||||||||||
Government sponsored enterprises | $ | 16,284 | $ | 125 | $ | — | $ | 16,409 | ||||
Residential collateralized mortgage obligations | 62,701 | 138 | 475 | 62,364 | ||||||||
Residential mortgage backed securities | 28,494 | 65 | 268 | 28,291 | ||||||||
State and political subdivisions | 96,480 | 2,178 | 118 | 98,540 | ||||||||
$ | 203,959 | $ | 2,506 | $ | 861 | $ | 205,604 |
Amortized | Fair | |||||
Cost | Value | |||||
Within 1 year | $ | 4,044 | $ | 4,077 | ||
Over 1 year through 5 years | 33,244 | 33,809 | ||||
Over 5 years through 10 years | 36,949 | 37,863 | ||||
Over 10 years | 36,727 | 38,094 | ||||
Residential collateralized mortgage obligations and mortgage backed securities | 89,149 | 90,031 | ||||
$ | 200,113 | $ | 203,874 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
March 31, 2016 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||
Residential collateralized mortgage obligations | $ | 4,834 | $ | 15 | $ | — | $ | — | $ | 4,834 | $ | 15 | ||||||
Residential mortgage backed securities | 15,015 | 72 | — | — | 15,015 | 72 | ||||||||||||
State and political subdivisions | 7,033 | 34 | — | — | 7,033 | 34 | ||||||||||||
$ | 26,882 | $ | 121 | $ | — | $ | — | $ | 26,882 | $ | 121 | |||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
December 31, 2015 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||
Residential collateralized mortgage obligations | $ | 46,373 | $ | 475 | $ | — | $ | — | $ | 46,373 | $ | 475 | ||||||
Residential mortgage backed securities | 27,012 | 268 | — | — | 27,012 | 268 | ||||||||||||
State and political subdivisions | 12,283 | 118 | — | — | 12,283 | 118 | ||||||||||||
$ | 85,668 | $ | 861 | $ | — | $ | — | $ | 85,668 | $ | 861 |
Note 4. | Loans |
March 31, 2016 | December 31, 2015 | |||||
Construction and Land Development | $ | 27,798 | $ | 22,082 | ||
Farmland and Agricultural Production | 9,060 | 9,989 | ||||
Residential 1-4 Family | 139,208 | 135,864 | ||||
Multifamily | 31,511 | 34,272 | ||||
Commercial Real Estate | 378,304 | 381,098 | ||||
Commercial and Industrial | 181,142 | 179,623 | ||||
Consumer and other | 7,318 | 9,417 | ||||
774,341 | 772,345 | |||||
Net deferred loan fees | (68 | ) | (26 | ) | ||
Allowance for loan losses | (11,335 | ) | (11,741 | ) | ||
$ | 762,938 | $ | 760,578 |
March 31, 2016 | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due and Still Accruing | Total Accruing Loans | Non-accrual Loans | Total Loans | ||||||||||||||
Construction and Land Development | $ | 27,798 | $ | — | $ | — | $ | — | $ | 27,798 | $ | — | $ | 27,798 | |||||||
Farmland and Agricultural Production | 9,060 | — | — | — | 9,060 | — | 9,060 | ||||||||||||||
Residential 1-4 Family | 138,919 | 203 | 74 | — | 139,196 | 12 | 139,208 | ||||||||||||||
Multifamily | 31,511 | — | — | — | 31,511 | — | 31,511 | ||||||||||||||
Commercial Real Estate | |||||||||||||||||||||
Retail | 95,578 | — | — | — | 95,578 | — | 95,578 | ||||||||||||||
Office | 59,210 | — | — | — | 59,210 | — | 59,210 | ||||||||||||||
Industrial and Warehouse | 64,106 | — | — | — | 64,106 | — | 64,106 | ||||||||||||||
Health Care | 29,333 | — | — | — | 29,333 | — | 29,333 | ||||||||||||||
Other | 129,988 | — | — | — | 129,988 | 89 | 130,077 | ||||||||||||||
Commercial and Industrial | 179,097 | — | — | — | 179,097 | 2,045 | 181,142 | ||||||||||||||
Consumer and other | 7,318 | — | — | — | 7,318 | — | 7,318 | ||||||||||||||
Total | $ | 771,918 | $ | 203 | $ | 74 | $ | — | $ | 772,195 | $ | 2,146 | $ | 774,341 |
December 31, 2015 | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due and Still Accruing | Total Accruing Loans | Non-accrual Loans | Total Loans | ||||||||||||||
Construction and Land Development | $ | 21,885 | $ | — | $ | 197 | $ | — | $ | 22,082 | $ | — | $ | 22,082 | |||||||
Farmland and Agricultural Production | 9,989 | — | — | — | 9,989 | — | 9,989 | ||||||||||||||
Residential 1-4 Family | 135,632 | 182 | — | — | 135,814 | 50 | 135,864 | ||||||||||||||
Multifamily | 34,272 | — | — | — | 34,272 | — | 34,272 | ||||||||||||||
Commercial Real Estate | |||||||||||||||||||||
Retail | 95,570 | — | — | — | 95,570 | — | 95,570 | ||||||||||||||
Office | 55,151 | — | — | — | 55,151 | — | 55,151 | ||||||||||||||
Industrial and Warehouse | 65,536 | — | — | — | 65,536 | — | 65,536 | ||||||||||||||
Health Care | 29,985 | — | — | — | 29,985 | — | 29,985 | ||||||||||||||
Other | 134,762 | — | — | — | 134,762 | 94 | 134,856 | ||||||||||||||
Commercial and Industrial | 178,289 | — | — | 67 | 178,356 | 1,267 | 179,623 | ||||||||||||||
Consumer and other | 9,417 | — | — | — | 9,417 | — | 9,417 | ||||||||||||||
Total | $ | 770,488 | $ | 182 | $ | 197 | $ | 67 | $ | 770,934 | $ | 1,411 | $ | 772,345 |
March 31, 2016 | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||
Construction and Land Development | $ | 24,116 | $ | 3,682 | $ | — | $ | — | $ | 27,798 | |||||
Farmland and Agricultural Production | 9,060 | — | — | — | 9,060 | ||||||||||
Multifamily | 30,844 | 667 | — | — | 31,511 | ||||||||||
Commercial Real Estate | |||||||||||||||
Retail | 87,723 | — | 7,855 | — | 95,578 | ||||||||||
Office | 59,210 | — | — | — | 59,210 | ||||||||||
Industrial and Warehouse | 63,281 | 825 | — | — | 64,106 | ||||||||||
Health Care | 29,333 | — | — | — | 29,333 | ||||||||||
Other | 124,407 | 2,496 | 3,162 | 12 | 130,077 | ||||||||||
Commercial and Industrial | 167,810 | 8,359 | 4,203 | 770 | 181,142 | ||||||||||
Total | $ | 595,784 | $ | 16,029 | $ | 15,220 | $ | 782 | $ | 627,815 |
March 31, 2016 | Performing | Non-performing* | Total | ||||||
Residential 1-4 Family | $ | 139,196 | $ | 12 | $ | 139,208 | |||
Consumer and other | 7,318 | — | 7,318 | ||||||
Total | $ | 146,514 | $ | 12 | $ | 146,526 |
December 31, 2015 | Pass | Special Mention | Substandard | Doubtful | Total | ||||||||||
Construction and Land Development | $ | 19,450 | $ | 2,632 | $ | — | $ | — | $ | 22,082 | |||||
Farmland and Agricultural Production | 9,989 | — | — | — | 9,989 | ||||||||||
Multifamily | 33,598 | 674 | — | — | 34,272 | ||||||||||
Commercial Real Estate | |||||||||||||||
Retail | 87,665 | — | 7,905 | — | 95,570 | ||||||||||
Office | 55,151 | — | — | — | 55,151 | ||||||||||
Industrial and Warehouse | 64,699 | 837 | — | — | 65,536 | ||||||||||
Health Care | 29,985 | — | — | — | 29,985 | ||||||||||
Other | 128,988 | 2,664 | 3,192 | 12 | 134,856 | ||||||||||
Commercial and Industrial | 173,324 | 4,714 | 355 | 1,230 | 179,623 | ||||||||||
Total | $ | 602,849 | $ | 11,521 | $ | 11,452 | $ | 1,242 | $ | 627,064 |
December 31, 2015 | Performing | Non-performing* | Total | ||||||
Residential 1-4 Family | $ | 135,814 | $ | 50 | $ | 135,864 | |||
Consumer and other | 9,417 | — | 9,417 | ||||||
Total | $ | 145,231 | $ | 50 | $ | 145,281 |
March 31, 2016 | Construction and Land Development | Farmland and Agricultural Production | Residential 1-4 Family | Multifamily | Commercial Real Estate | Commercial and Industrial | Consumer and other | Total | ||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Beginning balance | $ | 813 | $ | 43 | $ | 1,370 | $ | 141 | $ | 4,892 | $ | 4,286 | $ | 196 | $ | 11,741 | ||||||||
Provision for loan losses | (449 | ) | (6 | ) | (126 | ) | (15 | ) | (376 | ) | 1,054 | (82 | ) | — | ||||||||||
Loans charged-off | — | — | (9 | ) | — | — | (496 | ) | (1 | ) | (506 | ) | ||||||||||||
Recoveries of loans previously charged-off | 17 | — | 27 | — | 8 | 48 | — | 100 | ||||||||||||||||
Ending balance | $ | 381 | $ | 37 | $ | 1,262 | $ | 126 | $ | 4,524 | $ | 4,892 | $ | 113 | $ | 11,335 | ||||||||
March 31, 2015 | ||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||
Beginning balance | $ | 758 | $ | 459 | $ | 1,199 | $ | 67 | $ | 6,828 | $ | 4,296 | $ | 298 | $ | 13,905 | ||||||||
Provision for loan losses | (44 | ) | (20 | ) | (131 | ) | 30 | 325 | (147 | ) | (13 | ) | — | |||||||||||
Loans charged-off | — | — | (72 | ) | — | — | (262 | ) | (1 | ) | (335 | ) | ||||||||||||
Recoveries of loans previously charged-off | 17 | — | 150 | — | 9 | 30 | 2 | 208 | ||||||||||||||||
Ending balance | $ | 731 | $ | 439 | $ | 1,146 | $ | 97 | $ | 7,162 | $ | 3,917 | $ | 286 | $ | 13,778 |
March 31, 2016 | Construction and Land Development | Farmland and Agricultural Production | Residential 1-4 Family | Multifamily | Commercial Real Estate | Commercial and Industrial | Consumer and other | Total | ||||||||||||||||
Period-ended amount allocated to: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | 29 | $ | — | $ | — | $ | 1,196 | $ | — | $ | 1,225 | ||||||||
Collectively evaluated for impairment | 381 | 37 | 1,233 | 126 | 4,524 | 3,696 | 113 | 10,110 | ||||||||||||||||
Ending balance | $ | 381 | $ | 37 | $ | 1,262 | $ | 126 | $ | 4,524 | $ | 4,892 | $ | 113 | $ | 11,335 | ||||||||
Loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | 1,615 | $ | — | $ | 3,831 | $ | 4,537 | $ | — | $ | 9,983 | ||||||||
Collectively evaluated for impairment | 27,798 | 9,060 | 137,593 | 31,511 | 374,473 | 176,605 | 7,318 | 764,358 | ||||||||||||||||
Ending balance | $ | 27,798 | $ | 9,060 | $ | 139,208 | $ | 31,511 | $ | 378,304 | $ | 181,142 | $ | 7,318 | $ | 774,341 | ||||||||
December 31, 2015 | ||||||||||||||||||||||||
Period-ended amount allocated to: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | 30 | $ | — | $ | — | $ | 441 | $ | — | $ | 471 | ||||||||
Collectively evaluated for impairment | 813 | 43 | 1,340 | 141 | 4,892 | 3,845 | 196 | 11,270 | ||||||||||||||||
Ending balance | $ | 813 | $ | 43 | $ | 1,370 | $ | 141 | $ | 4,892 | $ | 4,286 | $ | 196 | $ | 11,741 | ||||||||
Loans: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | — | $ | 1,661 | $ | — | $ | 4,381 | $ | 3,777 | $ | — | $ | 9,819 | ||||||||
Collectively evaluated for impairment | 22,082 | 9,989 | 134,203 | 34,272 | 376,717 | 175,846 | 9,417 | 762,526 | ||||||||||||||||
Ending balance | $ | 22,082 | $ | 9,989 | $ | 135,864 | $ | 34,272 | $ | 381,098 | $ | 179,623 | $ | 9,417 | $ | 772,345 |
March 31, 2016 | |||||||||||||||
Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | Average Recorded Investment | Interest Income Recognized | |||||||||||
With no related allowance recorded: | |||||||||||||||
Construction and Land Development | $ | — | $ | — | $ | — | $ | — | $ | — | |||||
Farmland and Agricultural Production | — | — | — | — | — | ||||||||||
Residential 1-4 Family | 1,189 | 1,149 | — | 1,171 | 15 | ||||||||||
Multifamily | — | — | — | — | — | ||||||||||
Commercial Real Estate | |||||||||||||||
Retail | — | — | — | — | — | ||||||||||
Office | — | — | — | 247 | — | ||||||||||
Industrial and Warehouse | — | — | — | — | — | ||||||||||
Health Care | — | — | — | — | — | ||||||||||
Other | 3,896 | 3,831 | — | 3,859 | 31 | ||||||||||
Commercial and Industrial | 4,377 | 3,298 | — | 3,214 | 37 | ||||||||||
Consumer and other | — | — | — | — | — | ||||||||||
With an allowance recorded: | |||||||||||||||
Construction and Land Development | — | — | — | — | — | ||||||||||
Farmland and Agricultural Production | — | — | — | — | — | ||||||||||
Residential 1-4 Family | 466 | 466 | 29 | 467 | 6 | ||||||||||
Multifamily | — | — | — | — | — | ||||||||||
Commercial Real Estate | |||||||||||||||
Retail | — | — | — | — | — | ||||||||||
Office | — | — | — | — | — | ||||||||||
Industrial and Warehouse | — | — | — | — | — | ||||||||||
Health Care | — | — | — | — | — | ||||||||||
Other | — | — | — | — | — | ||||||||||
Commercial and Industrial | 1,239 | 1,239 | 1,196 | 943 | — | ||||||||||
Consumer and other | — | — | — | — | — | ||||||||||
Total | $ | 11,167 | $ | 9,983 | $ | 1,225 | $ | 9,901 | $ | 89 |
December 31, 2015 | |||||||||||||||
Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | Average Recorded Investment | Interest Income Recognized | |||||||||||
With no related allowance recorded: | |||||||||||||||
Construction and Land Development | $ | — | $ | — | $ | — | $ | — | $ | — | |||||
Farmland and Agricultural Production | — | — | — | — | — | ||||||||||
Residential 1-4 Family | 1,232 | 1,193 | — | 1,280 | 61 | ||||||||||
Multifamily | — | — | — | — | — | ||||||||||
Commercial Real Estate | |||||||||||||||
Retail | — | — | — | — | — | ||||||||||
Office | 494 | 494 | — | 502 | 26 | ||||||||||
Industrial and Warehouse | — | — | — | 1,441 | — | ||||||||||
Health Care | — | — | — | — | — | ||||||||||
Other | 3,952 | 3,887 | — | 5,015 | 127 | ||||||||||
Commercial and Industrial | 3,331 | 3,131 | — | 3,640 | 130 | ||||||||||
Consumer and other | — | — | — | 4 | — | ||||||||||
With an allowance recorded: | |||||||||||||||
Construction and Land Development | — | — | — | — | — | ||||||||||
Farmland and Agricultural Production | — | — | — | — | — | ||||||||||
Residential 1-4 Family | 468 | 468 | 30 | 473 | 23 | ||||||||||
Multifamily | — | — | — | ||||||||||||
Commercial Real Estate | — | — | |||||||||||||
Retail | — | — | — | — | — | ||||||||||
Office | — | — | — | — | — | ||||||||||
Industrial and Warehouse | — | — | — | — | — | ||||||||||
Health Care | — | — | — | — | — | ||||||||||
Other | — | — | — | 64 | — | ||||||||||
Commercial and Industrial | 1,109 | 646 | 441 | 491 | — | ||||||||||
Consumer and other | — | — | — | — | — | ||||||||||
Total | $ | 10,586 | $ | 9,819 | $ | 471 | $ | 12,910 | $ | 367 |
Three Months ended | |||||
March 31, 2016 | |||||
Recorded Investment | Number of Loans | ||||
Balance, beginning | $ | 2,832 | 6 | ||
Additions to troubled debt restructurings | — | — | |||
Removal of troubled debt restructurings | (519 | ) | (2 | ) | |
Charge-off related to troubled debt restructurings | — | — | |||
Transfers to other real estate owned | — | — | |||
Repayments and other reductions | (17 | ) | — | ||
Balance, ending | $ | 2,296 | 4 |
Note 5. | Deposits |
March 31, 2016 | December 31, 2015 | |||||
NOW and money market accounts | $ | 342,009 | $ | 336,197 | ||
Savings | 38,481 | 36,207 | ||||
Time deposit certificates of $250,000 or more | 70,893 | 69,961 | ||||
Time deposit certificates of $100,000 to $250,000 | 125,959 | 127,091 | ||||
Other time deposit certificates | 97,224 | 100,472 | ||||
$ | 674,566 | $ | 669,928 |
March 31, 2016 | December 31, 2015 | |||||
NOW and money market accounts | $ | 17,930 | $ | 35,271 | ||
Time deposit certificates | 13,878 | 11,874 | ||||
$ | 31,808 | $ | 47,145 |
Note 6. | Other Borrowed Funds |
March 31, 2016 | December 31, 2015 | |||||
Securities sold under agreements to repurchase | $ | 21,917 | $ | 25,069 | ||
Federal Home Loan Bank Advances | ||||||
Maturity dates, fixed interest rate | ||||||
Matures January 6, 2016, 0.28% | — | 11,000 | ||||
Matures January 4, 2016, 0.16% | — | 5,000 | ||||
Matures April 1, 2016, 0.22% | 5,000 | — | ||||
Matures April 7, 2016, 0.24% | 10,000 | — | ||||
Matures April 21, 2016, 0.225% | 10,000 | — | ||||
Secured borrowings | 10,020 | 11,946 | ||||
$ | 56,937 | $ | 53,015 |
Note 7. | Income Taxes |
Three months ended March 31, | ||||||
2016 | 2015 | |||||
Current | $ | 96 | $ | (351 | ) | |
Deferred | 793 | 1,218 | ||||
$ | 889 | $ | 867 |
Three months ended March 31, | ||||||
2016 | 2015 | |||||
Federal income tax at statutory rate | $ | 1,021 | $ | 866 | ||
Increase (decrease) due to: | ||||||
Federal tax exempt | (189 | ) | (123 | ) | ||
State income tax, net of federal benefit | 149 | 126 | ||||
Benefit of income taxed at lower rate | (29 | ) | (25 | ) | ||
Tax exempt income | (6 | ) | (8 | ) | ||
Cash surrender value of life insurance | (48 | ) | (11 | ) | ||
Other | (9 | ) | 42 | |||
$ | 889 | $ | 867 |
March 31, 2016 | December 31, 2015 | |||||
Deferred tax assets: | ||||||
Allowance for loan losses | $ | 4,116 | $ | 4,169 | ||
Merger expenses | 137 | 226 | ||||
Organization expenses | 219 | 140 | ||||
Net operating losses | 3,294 | 3,774 | ||||
Contribution carryforward | 5 | 5 | ||||
Restricted stock | 87 | — | ||||
Non-qualified stock options | 661 | 644 | ||||
Foreclosed assets | 193 | 315 | ||||
Tax credits | 355 | 334 | ||||
Other | 150 | 135 | ||||
9,217 | 9,742 | |||||
Deferred tax liabilities: | ||||||
Depreciation | (177 | ) | (186 | ) | ||
Unrealized gains on securities available for sale | (1,466 | ) | (642 | ) | ||
Other | — | 277 | ||||
(1,643 | ) | (551 | ) | |||
Net deferred tax asset | $ | 7,574 | $ | 9,191 |
Note 8. | Stock Compensation Plans |
March 31, 2016 | December 31, 2015 | |||||||||||||||
Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | |||||||||||
Outstanding at beginning of year | 1,305,504 | $ | 6.69 | $ | 1,308 | 1,089,404 | $ | 7.00 | $ | — | ||||||
Granted | 217,500 | 7.24 | 318 | 217,500 | 5.20 | 444 | ||||||||||
Exercised | (5,600 | ) | 6.25 | 6 | — | — | — | |||||||||
Canceled | — | — | — | — | — | — | ||||||||||
Expired | — | — | — | — | — | — | ||||||||||
Forfeited | — | — | — | (1,400 | ) | 8.25 | — | |||||||||
Outstanding at end of period | 1,517,404 | $ | 6.77 | $ | 3,054 | 1,305,504 | $ | 6.69 | $ | 1,308 | ||||||
Exercisable at end of period | 1,154,904 | $ | 6.88 | $ | 2,663 | 1,088,004 | $ | 6.99 | $ | 864 |
Exercise Prices | Number Outstanding | Weighted Average Remaining Life (yrs) | Number Exercisable | ||
$5.00 | 364,376 | 3.29 | 364,376 | ||
$5.20 | 217,500 | 8.76 | 72,500 | ||
$5.53 | 6,000 | 4.09 | 6,000 | ||
$6.25 | 25,000 | 4.53 | 25,000 | ||
$6.38 | 10,000 | 0.05 | 10,000 | ||
$7.24 | 217,500 | 9.76 | — | ||
$7.50 | 433,500 | 1.32 | 433,500 | ||
$8.00 | 4,000 | 3.46 | 4,000 | ||
$9.25 | 239,528 | 2.13 | 239,528 | ||
1,517,404 | 1,154,904 |
March 31, 2016 | |||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||
Outstanding at beginning of year | 25,000 | $ | 5.14 | ||
Granted | — | — | |||
Vested | — | — | |||
Canceled | — | — | |||
Forfeited | — | — | |||
Nonvested shares, end of period | 25,000 | $ | 5.14 |
Note 9. | Concentrations, Commitments and Contingencies |
March 31, 2016 | December 31, 2015 | |||||
Commitments to extend credit | $ | 191,426 | $ | 179,517 | ||
Standby letters of credit | 7,156 | 10,353 | ||||
Performance letters of credit | 1,010 | 1,088 | ||||
$ | 199,592 | $ | 190,958 |
Note 10. | Capital and Regulatory Matters |
As of March 31, 2016 | ||||||||||||
March 31, 2016 | December 31, 2015 | Regulatory Minimum To Be Well Capitalized under Prompt Corrective Action Provisions | ||||||||||
Ratio | Amount | Ratio | Amount | Ratio | Amount | |||||||
Bank capital ratios: | ||||||||||||
Total capital to risk-weighted assets | 15.79 | % | 133,276 | 15.79 | % | 133,247 | 10.00 | % | 84,405 | |||
Tier 1 capital to risk weighted assets | 14.54 | % | 122,702 | 14.54 | % | 122,664 | 8.00 | % | 67,524 | |||
Tier 1 common equity to risk-weighted assets | 14.54 | % | 122,702 | 14.54 | % | 122,664 | 6.50 | % | 54,863 | |||
Tier 1 leverage to average assets | 11.85 | % | 122,702 | 11.71 | % | 122,664 | 5.00 | % | 51,788 | |||
Company capital ratios: | ||||||||||||
Total capital to risk-weighted assets | 14.99 | % | 127,076 | 14.69 | % | 124,159 | N/A | N/A | ||||
Tier 1 capital to risk weighted assets | 11.94 | % | 101,202 | 11.62 | % | 98,276 | N/A | N/A | ||||
Tier 1 common equity to risk-weighted assets | 11.94 | % | 101,202 | 11.62 | % | 98,276 | N/A | N/A | ||||
Tier 1 leverage to average assets | 9.72 | % | 101,202 | 9.36 | % | 98,276 | N/A | N/A |
Note 11. | Fair Value Measurements |
March 31, 2016 | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||
Financial Assets | ||||||||||||
Securities Available for Sale: | ||||||||||||
Government sponsored enterprises | $ | 16,551 | $ | — | $ | 16,551 | $ | — | ||||
Residential collateralized mortgage obligations | 62,334 | — | 62,334 | — | ||||||||
Residential mortgage backed securities | 27,697 | — | 27,697 | — | ||||||||
State and political subdivisions | 97,292 | — | 95,788 | 1,504 | ||||||||
Derivative financial instruments | 95 | — | 95 | — | ||||||||
Financial Liabilities | ||||||||||||
Derivative financial instruments | 95 | — | 95 | — | ||||||||
December 31, 2015 | ||||||||||||
Financial Assets | ||||||||||||
Securities Available for Sale: | ||||||||||||
Government sponsored enterprises | $ | 16,409 | $ | — | $ | 16,409 | $ | — | ||||
Residential collateralized mortgage obligations | 62,364 | — | 62,364 | — | ||||||||
Residential mortgage backed securities | 28,291 | — | 28,291 | — | ||||||||
State and political subdivisions | 98,540 | — | 97,036 | 1,504 | ||||||||
Derivative financial instruments | 95 | — | 95 | — | ||||||||
Financial Liabilities | ||||||||||||
Derivative financial instruments | 95 | — | 95 | — | ||||||||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||
State and political subdivisions | |||
Beginning balance, December 31, 2015 | $ | 1,504 | |
Total gains or losses (realized/unrealized) included in other comprehensive income | — | ||
Included in earnings | — | ||
Purchases | — | ||
Paydowns and maturities | — | ||
Transfers in and/or out of Level 3 | — | ||
Ending balance, March 31, 2016 | $ | 1,504 | |
Beginning balance, December 31, 2014 | $ | 1,514 | |
Total gains or losses (realized/unrealized) included in other comprehensive income | — | ||
Included in earnings | — | ||
Purchases | — | ||
Paydowns and maturities | — | ||
Transfers in and/or out of Level 3 | — | ||
Ending balance, March 31, 2015 | $ | 1,514 |
March 31, 2016 | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||
Financial Assets | ||||||||||
Mortgage loans held for sale | $ | 133 | — | — | $ | 133 | ||||
Impaired loans | 8,758 | — | — | 8,758 | ||||||
Foreclosed assets | 5,231 | — | — | 5,231 | ||||||
December 31, 2015 | ||||||||||
Financial Assets | ||||||||||
Mortgage loans held for sale | $ | 400 | — | — | $ | 400 | ||||
Impaired loans | 9,348 | — | — | 9,348 | ||||||
Foreclosed assets | 5,487 | — | — | 5,487 |
Quantitative Information about Level 3 Fair Value Measurements | ||||||
Fair Value Estimate | Valuation Techniques | Unobservable Input | Discount Range | |||
Assets | ||||||
March 31, 2016 | ||||||
Mortgage loans held for sale | $ | 133 | Secondary market pricing | Selling costs | — | |
Impaired loans | $ | 8,758 | Appraisal of Collateral | Appraisal adjustments Selling costs | 10% to 25% | |
Foreclosed assets | 5,321 | Appraisal of Collateral | Selling costs | 10.00% | ||
December 31, 2015 | ||||||
Mortgage loans held for sale | 400 | Secondary market pricing | Selling costs | — | ||
Impaired loans | 9,348 | Appraisal of Collateral | Appraisal adjustments Selling costs | 10% to 25% | ||
Foreclosed assets | 5,487 | Appraisal of Collateral | Selling costs | 10.00% |
Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Financial assets: | |||||||||||||||
Cash and due from banks | $ | 9,132 | $ | 9,132 | $ | 9,132 | $ | — | $ | — | |||||
Interest-bearing deposits in banks | 30,558 | 30,558 | 30,558 | — | — | ||||||||||
Securities available for sale | 203,874 | 203,874 | — | 202,370 | 1,504 | ||||||||||
Nonmarketable equity securities | 1,367 | 1,367 | — | — | 1,367 | ||||||||||
Loans, net | 762,938 | 762,585 | — | — | 762,585 | ||||||||||
Accrued interest receivable | 2,938 | 2,938 | 2,938 | — | — | ||||||||||
Derivative financial instruments | 95 | 95 | — | 95 | — | ||||||||||
Financial liabilities: | |||||||||||||||
Non-interest bearing deposits | 204,414 | 204,414 | 204,414 | — | — | ||||||||||
Interest-bearing deposits | 674,566 | 668,023 | 342,009 | — | 326,014 | ||||||||||
Other borrowed funds | 56,937 | 56,937 | 56,937 | — | — | ||||||||||
Subordinated debt | 15,300 | 15,656 | — | — | 16,320 | ||||||||||
Accrued interest payable | 368 | 368 | 368 | — | — | ||||||||||
Derivative financial instruments | 95 | 95 | — | 95 | — |
Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
Financial assets: | |||||||||||||||
Cash and due from banks | $ | 10,699 | $ | 10,699 | $ | 10,699 | $ | — | $ | — | |||||
Interest-bearing deposits in banks | 7,406 | 7,406 | 7,406 | — | — | ||||||||||
Securities available for sale | 205,604 | 205,604 | — | 204,100 | 1,504 | ||||||||||
Nonmarketable equity securities | 1,367 | 1,367 | — | — | 1,367 | ||||||||||
Mortgage loans held for sale | 400 | 400 | — | — | 400 | ||||||||||
Loans, net | 760,578 | 760,159 | — | — | 760,159 | ||||||||||
Accrued interest receivable | 3,106 | 3,106 | 3,106 | — | — | ||||||||||
Derivative financial instruments | 95 | 95 | — | 95 | — | ||||||||||
Financial liabilities: | |||||||||||||||
Non-interest bearing deposits | 196,063 | 196,063 | 196,063 | — | — | ||||||||||
Interest-bearing deposits | 669,928 | 663,174 | 372,404 | — | 290,770 | ||||||||||
Other borrowed funds | 53,015 | 53,015 | 53,015 | — | — | ||||||||||
Subordinated debt | 15,300 | 15,656 | — | — | 15,656 | ||||||||||
Accrued interest payable | 545 | 545 | 545 | — | — | ||||||||||
Derivative financial instruments | 95 | 95 | — | 95 | — |
Note 12. | Derivatives and Hedging Activities |
Note 13. | Pending Merger Transaction |
• | Signing of the Merger Agreement to acquire Mazon State Bank, a neighboring bank with $85 million in total assets, $33 million in total loans, $48 million in residential mortgage loans serviced, and $74 million in deposits as of March 31, 2016, 99.59% of which are core deposits |
• | Addition of six seasoned commercial bankers |
• | Asset growth of $20.2 million, or 1.94%, from the fourth quarter |
• | Loan growth of $2.0 million, or 0.25%, from the fourth quarter |
• | Deposit growth of $13.0 million, or 1.50%, from the fourth quarter |
• | Noninterest bearing deposit growth of $8.4 million, or 4.26%, from the fourth quarter |
• | Diluted earnings per share (“EPS”) of $0.12 for the first quarter of 2016; $0.03 or 33.33% per diluted share increase over prior year |
• | Net interest income growth of $1.1 million, or 15.49%, compared to the first quarter of 2015 |
• | No loan loss provision in first quarter of 2016 or 2015, reflecting continued overall improvement in asset quality |
• | Noninterest expense increase of $779,000, or 15.11%, year-over-year primarily due to the addition of six commercial bankers in the first quarter of 2016 |
• | Shareholders’ equity increase of $3.7 million or 3.64% to $106.8 million million year-over-year; tangible equity ratio of 10.07% as of March 31, 2016 |
FINANCIAL SUMMARY | |||||||||||||||
March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||
Period-End Balance Sheet | |||||||||||||||
(In thousands)(Unaudited) | |||||||||||||||
Assets | |||||||||||||||
Mortgage loans held for sale | $ | 133 | $ | 400 | $ | — | $ | 1,449 | $ | 1,729 | |||||
Commercial real estate | 378,304 | 381,098 | 368,896 | 363,575 | 369,113 | ||||||||||
Commercial | 181,142 | 179,623 | 180,674 | 187,780 | 176,281 | ||||||||||
Residential 1-4 family | 139,208 | 135,864 | 126,316 | 109,819 | 102,432 | ||||||||||
Multifamily | 31,511 | 34,272 | 30,771 | 29,829 | 26,015 | ||||||||||
Construction and land development | 27,798 | 22,082 | 19,451 | 19,612 | 18,555 | ||||||||||
Farmland and agricultural production | 9,060 | 9,989 | 8,984 | 8,604 | 8,869 | ||||||||||
Consumer and other | 7,250 | 9,391 | 7,963 | 8,578 | 10,570 | ||||||||||
Total loans | 774,273 | 772,319 | 743,055 | 727,797 | 711,835 | ||||||||||
Allowance for loan losses | 11,335 | 11,741 | 11,753 | 12,420 | 13,778 | ||||||||||
Net loans | 762,938 | 760,578 | 731,302 | 715,377 | 698,057 | ||||||||||
Investment securities | 205,241 | 206,971 | 217,194 | 184,349 | 190,909 | ||||||||||
Other earning assets | 47,261 | 23,967 | 25,743 | 42,777 | 14,447 | ||||||||||
Other non-earning assets | 45,289 | 48,736 | 49,193 | 50,517 | 53,997 | ||||||||||
Total Assets | $ | 1,060,862 | $ | 1,040,652 | $ | 1,023,432 | $ | 994,469 | $ | 959,139 | |||||
Liabilities and Shareholders' Equity | |||||||||||||||
Noninterest bearing deposits | $ | 204,414 | $ | 196,063 | $ | 174,849 | $ | 174,527 | $ | 167,733 | |||||
Savings deposits | 38,481 | 36,206 | 34,933 | 33,567 | 33,101 | ||||||||||
NOW accounts | 104,136 | 102,882 | 101,828 | 95,406 | 71,983 | ||||||||||
Money market accounts | 237,873 | 233,315 | 232,195 | 231,185 | 217,637 | ||||||||||
Time deposits | 294,076 | 297,525 | 302,892 | 299,703 | 310,674 | ||||||||||
Total deposits | 878,980 | 865,991 | 846,697 | 834,388 | 801,128 | ||||||||||
Total borrowings | 72,237 | 68,315 | 72,551 | 59,398 | 57,953 | ||||||||||
Other liabilities | 2,855 | 3,305 | 4,065 | 4,513 | 5,140 | ||||||||||
Total Liabilities | 954,072 | 937,611 | 923,313 | 898,299 | 864,221 | ||||||||||
Shareholders’ equity | 106,790 | 103,041 | 100,119 | 96,170 | 94,918 | ||||||||||
Total Shareholders’ Equity | 106,790 | 103,041 | 100,119 | 96,170 | 94,918 | ||||||||||
Total Liabilities and Shareholders’ Equity | $ | 1,060,862 | $ | 1,040,652 | $ | 1,023,432 | $ | 994,469 | $ | 959,139 |
FINANCIAL SUMMARY | |||||||||||||||
Three months ended, | |||||||||||||||
March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||
Interest income: | (In thousands, except per share data)(Unaudited) | ||||||||||||||
Loans, including fees | $ | 8,508 | $ | 8,401 | $ | 8,218 | $ | 8,090 | $ | 7,815 | |||||
Securities | 1,101 | 1,117 | 1,103 | 962 | 951 | ||||||||||
Federal funds sold and other | 19 | 19 | 19 | 15 | 13 | ||||||||||
Total interest income | 9,628 | 9,537 | 9,340 | 9,067 | 8,779 | ||||||||||
Interest expense: | |||||||||||||||
Deposits | 940 | 986 | 973 | 987 | 977 | ||||||||||
Federal funds purchased and other borrowed funds | 93 | 87 | 98 | 17 | 14 | ||||||||||
Subordinated debt | 297 | 297 | 297 | 603 | 603 | ||||||||||
Total interest expense | 1,330 | 1,370 | 1,368 | 1,607 | 1,594 | ||||||||||
Net interest income | 8,298 | 8,167 | 7,972 | 7,460 | 7,185 | ||||||||||
Provision for loan losses | — | (515 | ) | (813 | ) | (749 | ) | — | |||||||
Net interest income after provision for loan losses | 8,298 | 8,682 | 8,785 | 8,209 | 7,185 | ||||||||||
Noninterest income: | |||||||||||||||
Service charges on deposit accounts | 204 | 190 | 188 | 194 | 183 | ||||||||||
Gain on sale of securities | — | 212 | 251 | — | 21 | ||||||||||
Mortgage fee income | 78 | 96 | 178 | 153 | 103 | ||||||||||
Other | 273 | 261 | 152 | 174 | 138 | ||||||||||
Total noninterest income | 555 | 759 | 769 | 521 | 445 | ||||||||||
Noninterest expenses: | |||||||||||||||
Salaries and employee benefits | 3,256 | 3,004 | 2,841 | 2,810 | 2,884 | ||||||||||
Occupancy and equipment expense | 437 | 494 | 486 | 505 | 492 | ||||||||||
Data processing | 257 | 203 | 248 | 237 | 224 | ||||||||||
Professional fees | 392 | 68 | 342 | 411 | 380 | ||||||||||
Advertising and business development | 215 | 219 | 217 | 227 | 189 | ||||||||||
Losses on sale and writedowns of foreclosed assets, net | 16 | 109 | 58 | 20 | — | ||||||||||
Foreclosed assets, net of rental income | 53 | 50 | (61 | ) | 70 | 72 | |||||||||
Other expense | 1,310 | 898 | 1,005 | 919 | 916 | ||||||||||
Total noninterest expense | 5,936 | 5,045 | 5,136 | 5,199 | 5,157 | ||||||||||
Income before income taxes | 2,917 | 4,396 | 4,418 | 3,531 | 2,473 | ||||||||||
Income taxes | 889 | 1,474 | 1,471 | 1,189 | 867 | ||||||||||
Net income applicable to common shareholders | $ | 2,028 | $ | 2,922 | $ | 2,947 | $ | 2,342 | $ | 1,606 | |||||
Basic earnings per share | $ | 0.12 | $ | 0.17 | $ | 0.17 | $ | 0.14 | $ | 0.10 | |||||
Diluted earnings per share | $ | 0.12 | $ | 0.17 | $ | 0.17 | $ | 0.14 | $ | 0.09 |
COMMON STOCK DATA | |||||||||||||||
2016 | 2015 | ||||||||||||||
First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||
(Unaudited) | |||||||||||||||
Market value (1): | |||||||||||||||
End of period | $ | 8.70 | $ | 7.24 | $ | 6.51 | $ | 6.45 | $ | 5.47 | |||||
High | 8.84 | 7.31 | 7.00 | 6.55 | 5.75 | ||||||||||
Low | 7.00 | 6.26 | 6.25 | 5.47 | 5.14 | ||||||||||
Book value (end of period) | 6.22 | 6.05 | 5.88 | 5.66 | 5.59 | ||||||||||
Tangible book value (end of period) | 6.22 | 6.05 | 5.88 | 5.66 | 5.59 | ||||||||||
Shares outstanding (end of period) | 17,175,864 | 17,026,941 | 17,017,441 | 16,984,221 | 16,970,721 | ||||||||||
Average shares outstanding | 17,125,928 | 16,939,010 | 16,993,822 | 16,970,721 | 16,768,908 | ||||||||||
Average diluted shares outstanding | 17,451,354 | 17,085,752 | 17,161,783 | 17,088,102 | 16,958,466 |
(1) The prices shown are as reported on the NASDAQ Capital Market other than the first and second quarters of 2015, which were reported on the OTC Pink Marketplace. |
ASSET QUALITY DATA | |||||||||||||||
March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||
(Dollars in thousands)(Unaudited) | |||||||||||||||
Loans identified as nonperforming | $ | 2,146 | $ | 1,411 | $ | 3,117 | $ | 4,185 | $ | 6,211 | |||||
Other nonperforming loans | — | 67 | 55 | 55 | — | ||||||||||
Total nonperforming loans | 2,146 | 1,478 | 3,172 | 4,240 | 6,211 | ||||||||||
Foreclosed assets | 5,231 | 5,487 | 4,109 | 4,248 | 2,550 | ||||||||||
Total nonperforming assets | $ | 7,377 | $ | 6,965 | $ | 7,281 | $ | 8,488 | $ | 8,761 | |||||
Allowance for loan losses | 11,335 | 11,741 | 11,753 | 12,420 | 13,778 | ||||||||||
Nonperforming assets to total assets | 0.70 | % | 0.67 | % | 0.71 | % | 0.85 | % | 0.91 | % | |||||
Nonperforming loans to total assets | 0.20 | % | 0.14 | % | 0.31 | % | 0.43 | % | 0.65 | % | |||||
Allowance for loan losses to nonperforming loans | 528.19 | % | 794.38 | % | 370.52 | % | 292.92 | % | 221.83 | % |
ALLOWANCE FOR LOAN LOSSES ROLLFORWARD | |||||||||||||||
(Unaudited) | Three months ended, | ||||||||||||||
March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||
Beginning balance | $ | 11,741 | $ | 11,753 | $ | 12,420 | $ | 13,778 | $ | 13,905 | |||||
Charge-offs | 506 | 133 | 654 | 736 | 335 | ||||||||||
Recoveries | 100 | 636 | 800 | 127 | 208 | ||||||||||
Net charge-offs | 406 | (503 | ) | (146 | ) | 609 | 127 | ||||||||
Provision for loan losses | — | (515 | ) | (813 | ) | (749 | ) | — | |||||||
Ending balance | $ | 11,335 | $ | 11,741 | $ | 11,753 | $ | 12,420 | $ | 13,778 | |||||
Net charge-offs | 406 | (503 | ) | (146 | ) | 609 | 127 | ||||||||
Net chargeoff percentage (annualized) | 0.21 | % | (0.26 | )% | (0.08 | )% | 0.34 | % | 0.07 | % |
OTHER DATA | ||||||||||
(Unaudited) | ||||||||||
Three months ended, | ||||||||||
March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | ||||||
Return on average assets | 0.78 | % | 1.11 | % | 1.17 | % | 0.96 | % | 0.69 | % |
Return on average equity | 7.68 | % | 11.48 | % | 12.01 | % | 9.77 | % | 6.87 | % |
Net interest margin | 3.36 | % | 3.29 | % | 3.31 | % | 3.23 | % | 3.23 | % |
Average loans to assets | 73.63 | % | 72.12 | % | 72.37 | % | 73.27 | % | 74.37 | % |
Average loans to deposits | 88.00 | % | 85.95 | % | 86.63 | % | 87.62 | % | 89.38 | % |
Average noninterest bearing deposits to total deposits | 23.35 | % | 23.45 | % | 20.79 | % | 22.08 | % | 20.48 | % |
COMPANY CAPITAL RATIOS | ||||||||||
(Unaudited) | March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | |||||
Tier 1 leverage ratio | 9.72 | % | 9.36 | % | 9.39 | % | 9.24 | % | 9.70 | % |
Common equity tier 1 capital ratio | 11.94 | % | 11.62 | % | 11.57 | % | 11.20 | % | 11.47 | % |
Tier 1 capital ratio | 11.94 | % | 11.62 | % | 11.57 | % | 11.20 | % | 11.47 | % |
Total capital ratio | 14.99 | % | 14.69 | % | 14.71 | % | 14.39 | % | 15.08 | % |
Tangible common equity to tangible assets | 10.07 | % | 9.90 | % | 9.78 | % | 9.67 | % | 9.90 | % |
NON-GAAP MEASURES | |||||||||||||||
Pre-tax pre-provision core income (1) | |||||||||||||||
(Dollars in thousands)(Unaudited) | |||||||||||||||
For the three months ended, | |||||||||||||||
March 31, 2016 | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | |||||||||||
Pre-tax net income | $ | 2,917 | $ | 4,396 | $ | 4,418 | $ | 3,531 | $ | 2,473 | |||||
Provision for loan losses | — | (515 | ) | (813 | ) | (749 | ) | — | |||||||
Gain on sale of securities | — | (212 | ) | (251 | ) | — | (21 | ) | |||||||
Merger related expenses included in professional fees | 100 | — | — | — | — | ||||||||||
Losses on sale and writedowns of foreclosed assets, net | 16 | 109 | 58 | 20 | — | ||||||||||
Foreclosed assets expense, net of rental income | 53 | 50 | (61 | ) | 70 | 72 | |||||||||
Pre-tax pre-provision core income | $ | 3,086 | $ | 3,828 | $ | 3,351 | $ | 2,872 | $ | 2,524 |
(1) This is a non-GAAP financial measure. The Company’s management believes the presentation of pre-tax pre-provision core income provides investors with a greater understanding of the Company’s operating results, in addition to the results measured in accordance with GAAP. |
Three months ended March 31, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
(Dollars in thousands) | Average Balances | Income/ Expense | Yields/ Rates | Average Balances | Income/ Expense | Yields/ Rates | ||||||||||
Assets | ||||||||||||||||
Loans (1) | $ | 768,983 | $ | 8,508 | 4.43 | % | $ | 694,514 | $ | 7,815 | 4.50 | % | ||||
Investment securities (2) | 206,535 | 1,101 | 2.13 | % | 182,504 | 951 | 2.08 | % | ||||||||
Federal funds sold | — | — | — | % | — | — | — | % | ||||||||
Interest-bearing deposits with other banks | 13,690 | 19 | 0.56 | % | 11,779 | 13 | 0.44 | % | ||||||||
Total earning assets | $ | 989,208 | $ | 9,628 | 3.89 | % | $ | 888,797 | $ | 8,779 | 3.95 | % | ||||
Other assets | 55,124 | 45,034 | ||||||||||||||
Total assets | $ | 1,044,332 | $ | 933,831 | ||||||||||||
Liabilities | ||||||||||||||||
NOW accounts | $ | 104,467 | $ | 71 | 0.27 | % | $ | 72,246 | $ | 23 | 0.13 | % | ||||
Money market accounts | 234,455 | 162 | 0.28 | % | 205,616 | 137 | 0.27 | % | ||||||||
Savings accounts | 37,194 | 11 | 0.12 | % | 31,785 | 13 | 0.16 | % | ||||||||
Time deposits | 292,491 | 696 | 0.95 | % | 303,293 | 804 | 1.06 | % | ||||||||
Total interest bearing deposits | 668,607 | 940 | 0.56 | % | 612,940 | 977 | 0.64 | % | ||||||||
Securities sold under agreements to repurchase | 23,902 | 9 | 0.15 | % | 28,820 | 7 | 0.10 | % | ||||||||
Secured borrowings | 10,528 | 74 | 2.81 | % | — | — | — | |||||||||
Mortgage payable | — | — | — | % | 450 | 7 | 6.22 | % | ||||||||
FHLB borrowings | 12,067 | 10 | 0.33 | % | 656 | — | — | % | ||||||||
Subordinated debentures | 15,300 | 297 | 7.76 | % | 29,136 | 603 | 8.28 | % | ||||||||
Total interest bearing liabilities | 730,404 | $ | 1,330 | 0.73 | % | 672,002 | 1,594 | 0.95 | % | |||||||
Noninterest bearing deposits | 205,215 | 164,072 | ||||||||||||||
Other liabilities | 3,051 | 4,194 | ||||||||||||||
Total liabilities | $ | 938,670 | $ | 840,268 | ||||||||||||
Total shareholders' equity | $ | 105,662 | $ | 93,563 | ||||||||||||
Total liabilities and equity | $ | 1,044,332 | $ | 933,831 | ||||||||||||
Net interest income | $ | 8,298 | $ | 7,185 | ||||||||||||
Interest rate spread | 3.16 | % | 3.00 | % | ||||||||||||
Net interest margin | 3.36 | % | 3.23 | % |
Three months ended March 31, | ||||||||||||
2016 compared to 2015 | ||||||||||||
Average Volume | Average Rate | Mix | Net Increase (Decrease) | |||||||||
Interest Income | ||||||||||||
Loans | $ | 827 | $ | (121 | ) | $ | (13 | ) | $ | 693 | ||
Investment securities | 124 | 23 | 3 | 150 | ||||||||
Interest bearing deposits with other banks | 1 | 4 | 1 | 6 | ||||||||
Total interest income | 952 | (94 | ) | (9 | ) | 849 | ||||||
Interest expense | ||||||||||||
NOW accounts | $ | 10 | $ | 27 | $ | 11 | $ | 48 | ||||
Money market accounts | 19 | 5 | 1 | 25 | ||||||||
Savings accounts | 2 | (3 | ) | (1 | ) | (2 | ) | |||||
Time deposits | (29 | ) | (82 | ) | 3 | (108 | ) | |||||
Secured borrowings | — | — | 74 | 74 | ||||||||
Securities sold under agreements to repurchase | (1 | ) | 4 | (1 | ) | 2 | ||||||
FHLB advances | 10 | — | — | 10 | ||||||||
Mortgage payable | (7 | ) | (7 | ) | 7 | (7 | ) | |||||
Subordinated debentures | (286 | ) | (38 | ) | 18 | (306 | ) | |||||
Total interest expense | (282 | ) | (94 | ) | 112 | (264 | ) | |||||
Change in net interest income | $ | 1,234 | $ | — | $ | (121 | ) | $ | 1,113 |
Three months ended March 31, | ||||||
(Dollars in thousands) | 2016 | 2015 | ||||
Service charges on deposit accounts | $ | 204 | $ | 183 | ||
Gain on sale of securities | — | 21 | ||||
Mortgage fee income | 78 | 103 | ||||
Other | 273 | 138 | ||||
Total noninterest income | $ | 555 | $ | 445 |
Three months ended March 31, | ||||||
(Dollars in thousands) | 2016 | 2015 | ||||
Salaries and employee benefits | $ | 3,256 | $ | 2,884 | ||
Occupancy and equipment expense | 437 | 492 | ||||
Data processing | 257 | 224 | ||||
Professional fees | 392 | 380 | ||||
Advertising and business development | 215 | 189 | ||||
Losses on sale and writedowns of foreclosed assets, net | 16 | — | ||||
Foreclosed assets, net of rental income | 53 | 72 | ||||
Other expense | 1,310 | 916 | ||||
Total noninterest expense | $ | 5,936 | $ | 5,157 |
March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||
Construction and Land Development | $ | 27,798 | 4 | % | $ | 22,082 | 3 | % | $ | 18,555 | 3 | % | |||
Farmland and Agricultural Production | 9,060 | 1 | % | 9,989 | 1 | % | 8,869 | 1 | % | ||||||
Residential 1-4 Family | 139,208 | 18 | % | 135,864 | 18 | % | 102,432 | 14 | % | ||||||
Multifamily | 31,511 | 4 | % | 34,272 | 5 | % | 26,015 | 4 | % | ||||||
Commercial Real Estate | 378,304 | 49 | % | 381,098 | 49 | % | 369,113 | 52 | % | ||||||
Commercial and Industrial | 181,142 | 23 | % | 179,623 | 23 | % | 176,281 | 25 | % | ||||||
Consumer and other | 7,318 | 1 | % | 9,417 | 1 | % | 10,683 | 1 | % | ||||||
Total Loans | $ | 774,341 | 100 | % | $ | 772,345 | 100 | % | $ | 711,948 | 100 | % |
Loans Maturities March 31, 2016 | ||||||||||||
(Dollars in thousands) | Within One Year | One Year to Five Years | After Five Years | Total | ||||||||
Construction and Land Development | $ | 19,517 | $ | — | $ | 8,281 | $ | 27,798 | ||||
Farmland and Agricultural Production | 1,703 | — | 7,357 | 9,060 | ||||||||
Residential 1-4 Family | 18,440 | 34,593 | 86,175 | 139,208 | ||||||||
Multifamily | 898 | 1,175 | 29,438 | 31,511 | ||||||||
Commercial Real Estate | 28,698 | 96,767 | 252,839 | 378,304 | ||||||||
Commercial and Industrial | 82,003 | 10,943 | 88,196 | 181,142 | ||||||||
Consumer and other | 3,831 | 20 | 3,467 | 7,318 | ||||||||
Total | $ | 155,090 | $ | 143,498 | $ | 475,753 | $ | 774,341 |
March 31, 2016 | |||
(Dollars in thousands) | Due After One Year | ||
Loans with: | |||
Predetermined interest rates | $ | 520,345 | |
Floating or adjustable rates | 98,906 | ||
$ | 619,251 |
Three months ended March 31, | ||||||
(Dollars in thousands) | 2016 | 2015 | ||||
Balance at beginning of period | $ | 11,741 | $ | 13,905 | ||
Charge-offs: | ||||||
Construction and Land Development | — | — | ||||
Farmland and Agricultural Production | — | — | ||||
Residential 1-4 Family | 9 | 72 | ||||
Multifamily | — | — | ||||
Commercial Real Estate | — | 263 | ||||
Commercial and Industrial | 496 | — | ||||
Consumer and other | 1 | — | ||||
Total charge-offs | $ | 506 | $ | 335 | ||
Recoveries: | ||||||
Construction and Land Development | 17 | 17 | ||||
Farmland and Agricultural Production | — | — | ||||
Residential 1-4 Family | 27 | 150 | ||||
Multifamily | — | — | ||||
Commercial Real Estate | 8 | 9 | ||||
Commercial and Industrial | 48 | 30 | ||||
Consumer and other | — | 2 | ||||
Total recoveries | $ | 100 | $ | 208 | ||
Net charge-offs | 406 | 127 | ||||
Provision for loan losses | — | — | ||||
Allowance for loan losses at end of period | $ | 11,335 | $ | 13,778 | ||
Selected loan quality ratios: | ||||||
Net charge-offs to average loans | 0.01 | % | 0.07 | % | ||
Allowance to total loans at end of period | 1.46 | % | 1.94 | % | ||
Allowance to nonperforming loans at end of period | 528.19 | % | 221.83 | % |
(Dollars in thousands) | March 31, 2016 | December 31, 2015 | ||||||||
Balance at end of period applicable to: | Amount | % of Total Loans | Amount | % of Total Loans | ||||||
Construction and Land Development | $ | 381 | 7 | % | $ | 813 | 7 | % | ||
Farmland and Agricultural Production | 37 | — | % | 43 | — | % | ||||
Residential 1-4 Family | 1,262 | 12 | % | 1,370 | 12 | % | ||||
Multifamily | 126 | 1 | % | 141 | 1 | % | ||||
Commercial Real Estate | 4,524 | 42 | % | 4,892 | 42 | % | ||||
Commercial | 4,892 | 37 | % | 4,286 | 37 | % | ||||
Consumer and other | 113 | 1 | % | 196 | 1 | % | ||||
Total | $ | 11,335 | 100 | % | $ | 11,741 | 100 | % |
March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||
Nonaccrual loans | $ | 2,146 | $ | 1,411 | $ | 6,211 | |||
Accruing loans delinquent 90 days or more | — | 67 | — | ||||||
Nonperforming loans | $ | 2,146 | $ | 1,478 | $ | 6,211 | |||
Troubled debt restructurings accruing interest | $ | 2,207 | $ | 2,738 | $ | 2,771 |
March 31, 2016 | December 31, 2015 | |||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||||||||
Government sponsored enterprises | $ | 16,244 | $ | 16,551 | $ | 16,284 | $ | 16,409 | ||||
Residential collateralized mortgage obligations | 61,474 | 62,334 | 62,701 | 62,364 | ||||||||
Residential mortgage backed securities | 27,675 | 27,697 | 28,494 | 28,291 | ||||||||
State and political subdivisions | 94,720 | 97,292 | 96,480 | 98,540 | ||||||||
Total securities available for sale | $ | 200,113 | $ | 203,874 | $ | 203,959 | $ | 205,604 |
March 31, 2016 | December 31, 2015 | |||||||||
Amount | Percent | Amount | Percent | |||||||
Noninterest bearing demand deposits | $ | 204,414 | 23 | % | $ | 196,063 | 23 | % | ||
NOW and money market accounts | 342,009 | 39 | % | 336,197 | 39 | % | ||||
Savings | 38,481 | 4 | % | 36,207 | 4 | % | ||||
Time deposit certificates of $250,000 or more | 70,893 | 8 | % | 69,961 | 8 | % | ||||
Time deposit certificates, $100,000 to $250,000 | 125,959 | 14 | % | 127,091 | 15 | % | ||||
Other time deposit certificates | 97,224 | 11 | % | 100,472 | 11 | % | ||||
Total | $ | 878,980 | 100 | % | $ | 865,991 | 100 | % |
March 31, 2016 | December 31, 2015 | |||||
NOW and money market accounts | $ | 17,930 | $ | 35,271 | ||
Time deposit certificates | 13,878 | 11,874 | ||||
$ | 31,808 | $ | 47,145 |
March 31, 2016 | ||||||||||||
Time Deposits $250 and Greater | Time Deposits of $100 - $250 | Time Deposits of Less than $100 | Total | |||||||||
Months to maturity: | ||||||||||||
Three or less | $ | 9,823 | $ | 17,777 | $ | 12,738 | $ | 40,338 | ||||
Over Three to Six | 10,921 | 16,176 | 9,746 | 36,843 | ||||||||
Over Six to Twelve | 22,805 | 41,064 | 32,901 | 96,770 | ||||||||
Over Twelve | 27,344 | 50,942 | 41,839 | 120,125 | ||||||||
Total | $ | 70,893 | $ | 125,959 | $ | 97,224 | $ | 294,076 |
March 31, 2016 | December 31, 2015 | |||||
(Dollars in thousands) | ||||||
Securities sold under agreements to repurchase: | ||||||
Balance: | ||||||
Average daily outstanding | $ | 23,902 | $ | 30,849 | ||
Outstanding at end of period | 21,917 | 25,069 | ||||
Maximum month-end outstanding | 23,572 | 37,474 | ||||
Rate: | ||||||
Weighted average interest rate during the year | 0.15 | % | 0.15 | % | ||
Weighted average interest rate at end of the period | 0.16 | % | 0.16 | % | ||
FHLB borrowings: | ||||||
Balance: | ||||||
Average daily outstanding | $ | 12,067 | $ | 1,686 | ||
Outstanding at end of period | 25,000 | 16,000 | ||||
Maximum month-end outstanding | 25,000 | 16,000 | ||||
Rate: | ||||||
Weighted average interest rate during the year | 0.18 | % | 0.18 | % | ||
Weighted average interest rate at end of the period | 0.24 | % | 0.24 | % |
March 31, 2016 | |||||||||||||||
0-3 Months | 3-12 Months | 12-60 Months | > 60 Months | Total | |||||||||||
Rate Sensitive Assets | |||||||||||||||
Interest-Bearing Deposits with Bank | $ | 30,558 | $ | — | $ | — | $ | — | $ | 30,558 | |||||
Investment Securities | 2,934 | 9,834 | 88,446 | 98,899 | 200,113 | ||||||||||
Loans | 253,324 | 115,548 | 344,602 | 60,867 | 774,341 | ||||||||||
Non-Marketable Equity Securities | 1,367 | — | — | — | 1,367 | ||||||||||
Total Rate Sensitive Assets | $ | 288,183 | $ | 125,382 | $ | 433,048 | $ | 159,766 | $ | 1,006,379 | |||||
Rate Sensitive Liabilities | |||||||||||||||
NOW Accounts | $ | 3,675 | $ | 11,026 | $ | 55,131 | $ | 34,304 | $ | 104,136 | |||||
Money Market Accounts | 64,510 | 70,921 | 102,442 | — | 237,873 | ||||||||||
Savings | 4,618 | 13,853 | 20,010 | — | 38,481 | ||||||||||
Time Deposits | 40,342 | 133,492 | 119,690 | 552 | 294,076 | ||||||||||
Total Interest Bearing Deposits | 113,145 | 229,292 | 297,273 | 34,856 | 674,566 | ||||||||||
Borrowed Funds | 35,793 | 2,321 | 17,815 | 16,308 | 72,237 | ||||||||||
Total Rate Sensitive Liabilities | $ | 148,938 | $ | 231,613 | $ | 315,088 | $ | 51,164 | $ | 746,803 | |||||
Cumulative Gap Report Summary Information | |||||||||||||||
Rate Sensitive Assets (RSA) | $ | 288,183 | $ | 413,565 | $ | 846,613 | $ | 1,006,379 | $ | 1,006,379 | |||||
Rate Sensitive Liabilities (RSL) | 148,938 | 380,551 | 695,639 | 746,803 | 746,803 | ||||||||||
Cumulative Gap (GAP=RSA-RSL) | 139,245 | 57,833 | 175,792 | 284,395 | 284,395 | ||||||||||
Total Assets | $ | 1,060,862 | |||||||||||||
RSA/RSL | 1.93 | % | 1.09 | % | 1.22 | % | 1.35 | % | 1.35 | % | |||||
RSA/Assets | 27.16 | % | 38.91 | % | 79.8 | % | 94.86 | % | 94.86 | % | |||||
RSL/Assets | 14.04 | % | 35.87 | % | 65.57 | % | 70.40 | % | 70.4 | % | |||||
Gap/Assets | 13.13 | % | 5.45 | % | 16.57 | % | 26.81 | % | 26.81 | % | |||||
Gap/RSA | 48.32 | % | 13.98 | % | 20.76 | % | 28.26 | % | 28.26 | % |
• | difficulties in integrating the operations, technologies, products, existing contracts, accounting processes and personnel of the target company and realizing the anticipated synergies of the combined businesses; |
• | difficulties in supporting and transitioning customers of the target company; |
• | diversion of financial and management resources from existing operations; |
• | the price we pay or other resources that we devote may exceed the value we realize, or the value we could have realized if we had allocated the purchase price or other resources to another opportunity; |
• | risks of entering new markets or areas in which we have limited or no experience or are outside our core competencies; |
• | potential loss of key employees, customers and strategic alliances from either our current business or the business of the target company; |
• | assumption of unanticipated problems or latent liabilities; and |
• | inability to generate sufficient revenue to offset acquisition costs. |
FIRST COMMUNITY FINANCIAL PARTNERS, INC. | |
Date: May 10, 2016 | /s/ Roy C. Thygesen |
Roy C. Thygesen | |
Chief Executive Officer | |
(Principal Executive Officer) | |
Date: May 10, 2016 | /s/ Glen L. Stiteley |
Glen L. Stiteley | |
Executive Vice President and Chief Financial Officer | |
(Principal Financial and Accounting Officer) |
31.1 | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
31.2 | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
32.1 | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
32.2 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith). |
101 | Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015; (ii) Consolidated Statements of Operations for the three months ended March 31, 2016 and March 31, 2015; (iii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2016 and March 31, 2015; (iv) Consolidated Statements of Changes in Shareholders’ Equity for the three months ended March 31, 2016 and March 31, 2015; (v) Consolidated Statements of Cash Flows for the three months ended March 31, 2016 and March 31, 2015; and (vi) Notes to Unaudited Consolidated Financial Statements. |
1. | I have reviewed this Form 10-Q of First Community Financial Partners, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
c. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | I have reviewed this Form 10-Q of First Community Financial Partners, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
c. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: May 10, 2016 | /s/ Roy C. Thygesen | |
Roy C. Thygesen | ||
Chief Executive Officer |
Date: May 10, 2016 | /s/ Glen L. Stiteley | |
Glen L. Stiteley | ||
Executive Vice President and Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2016 |
Apr. 30, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FIRST COMMUNITY FINANCIAL PARTNERS, INC. | |
Entity Central Index Key | 0001469134 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,175,864 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Entity Well Known Issuer | No | |
Entity Voluntary Filer | No | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $ 11,335 | $ 11,741 |
Common stock, par or stated value per share (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares, issued (in shares) | 17,175,864 | 17,026,941 |
Common stock, shares, outstanding (in shares) | 17,175,864 | 17,026,941 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,028 | $ 1,606 |
Unrealized holding gains on investment securities | 2,116 | 1,705 |
Reclassification adjustments for gains included in net income | 0 | (21) |
Tax effect of realized and unrealized gains and losses on investment securities | (824) | (657) |
Other comprehensive income, net of tax | 1,292 | 1,027 |
Comprehensive income | $ 3,320 | $ 2,633 |
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Stockholders' Equity [Abstract] | ||
Issuance of shares of common stock for restricted stock (in shares) | 129,573 | 302,719 |
Issuance of shares of common stock for exercise of warrants (in shares) | 3,750 |
Consolidated Statements of Cash Flows (Supplemental Information) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Supplemental Disclosures of Cash Flow Information | ||
Cash payments for interest | $ 1,507 | $ 2,173 |
Supplemental Schedule of Noncash Investing and Financing Activities | ||
Transfer of loans to foreclosed assets | $ 0 | $ 20 |
Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These are the unaudited consolidated financial statements of First Community Financial Partners, Inc. (the “Company” or “First Community”), and its subsidiaries, including its wholly owned bank subsidiary, First Community Financial Bank (the “Bank”), based in Plainfield, Illinois. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods have been made. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the results to be expected for the entire fiscal year. These unaudited interim financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and industry practice. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2015. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of income and expenses during the reported periods. Actual results could differ from those estimates. Certain prior period amounts have been reclassified to conform to current period presentation. These reclassifications did not result in any changes to previously reported net income or shareholders’ equity. Emerging Growth Company Critical Accounting Policy Disclosure The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act (the “JOBS Act”). Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company elected to take advantage of the benefits of this extended transition period. Management anticipates that the Company will no longer be considered an emerging growth company, and thus will no longer be eligible to use this extended transition period, after the fiscal year ending December 31, 2018. Certain information in footnote disclosure normally included financial statements prepared in accordance with U.S. GAAP and industry practice has been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”). New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-02, Leases (Topic 842). The ASU requires a lessee to recognize on the balance sheet assets and liabilities for leases with lease terms of more than 12 months. Consistent with current U.S. GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. Unlike U.S. GAAP, which requires that only capital leases be recognized on the balance sheet, the ASC requires that both types of leases by recognized on the balance sheet. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2018. Early application is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Among other items, the ASU, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2017. The effect of the adoption of this guidance is being evaluated by the Company. |
Earnings Per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Earnings per common share is computed using the two-class method. Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share (dollars in thousands, except per share data).
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Securities Available for Sale |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Available for Sale | Securities Available for Sale All securities are classified as “available for sale” as the Company intends to hold the securities for an indefinite period of time, but not necessarily to maturity. Securities available for sale are reported at fair value with unrealized gains or losses reported as a separate component of other comprehensive income, net of the related deferred tax effect. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follows (in thousands):
Securities with a fair value of $68.1 million and $82.2 million were pledged as collateral on public funds, securities sold under agreements to repurchase or for other purposes as required or permitted by law as of March 31, 2016 and December 31, 2015, respectively. The amortized cost and fair value of debt securities available for sale as of March 31, 2016, by contractual maturity are shown below (in thousands). Maturities may differ from contractual maturities in residential collateralized mortgage obligations and residential mortgage backed securities because the mortgages underlying the securities may be called or repaid without any penalties. Therefore, these securities are segregated in the following maturity summary:
Realized gains on the sales of securities were $0 and $21,000 during the three months ended March 31, 2016 and 2015, respectively. There were no securities with material unrealized losses existing longer than 12 months, and no securities with unrealized losses which management believed were other-than-temporarily impaired, at March 31, 2016 and December 31, 2015. Unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are summarized as of March 31, 2016 and December 31, 2015 are as follows:
The unrealized losses in the portfolio at March 31, 2016 resulted from fluctuations in market interest rates and not from deterioration in the creditworthiness of the issuers. Because the Company does not intend to sell and does not believe it will be required to sell these securities until market price recovery or maturity, these investment securities are not considered to be other-than-temporarily impaired. |
Loans |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans A summary of the balances of loans follows (in thousands):
The following table presents the contractual aging of the recorded investment in past due and non-accrual loans by class of loans as of March 31, 2016 and December 31, 2015 (in thousands):
As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt and comply with various terms of their loan agreements. The Company considers current financial information, historical payment experience, credit documentation, public information and current economic trends. Generally, all sizable credits receive a financial review no less than annually to monitor and adjust, if necessary, the credit’s risk profile. Credits classified as watch generally receive a review more frequently than annually. For special mention, substandard, and doubtful credit classifications, the frequency of review is increased to no less than quarterly in order to determine potential impact on credit loss estimates. The Company categorizes loans into the following risk categories based on relevant information about the ability of borrowers to service their debt: Pass - A pass asset is well protected by the current worth and paying capacity of the borrower (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Pass assets also include certain assets considered watch, which are still protected by the worth and paying capacity of the borrower but deserve closer attention and a higher level of credit monitoring. Special Mention - A special mention asset, or risk rating of 5, has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Substandard - A substandard asset, or risk rating of 6 or 7, is an asset with a well-defined weakness that jeopardizes repayment, in whole or in part, of the debt. These credits are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. These assets are characterized by the distinct possibility that the Company will or has sustained some loss of principal and/or interest if the deficiencies are not corrected. Loans rated a 6 are still on accrual status, while loans rated at 7 are placed on nonaccrual. Doubtful - An asset that has all the weaknesses, or risk rating of 8, inherent in the substandard classification, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. These credits have a high probability for loss, yet because certain important and reasonably specific pending factors may work toward the strengthening of the asset, its classification of loss is deferred until its more exact status can be determined. Loss - An asset, or portion thereof, classified as loss, or risk rated 9, is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted. This classification does not necessarily mean that an asset has no recovery or salvage value but that it is not practical or desirable to defer writing off this basically worthless asset even though a partial recovery may occur in the future. There was no balance to report at March 31, 2016 and December 31, 2015. Residential 1-4 family, consumer and other loans are assessed for credit quality based on the contractual aging status of the loan and payment activity. In certain cases, based upon payment performance, the loan being related with another commercial type loan or for other reasons, a loan may be categorized into one of the risk categories noted above. Such assessment is completed at the end of each reporting period. The following tables present the risk category of loans evaluated by internal asset classification based on the most recent analysis performed and the contractual aging as of March 31, 2016 and December 31, 2015 (in thousands):
* Non-performing loans include those on non-accrual status and those past due 90 days or more and still on accrual. The following table provides additional detail of the activity in the allowance for loan losses, by portfolio segment, for the three months ended March 31, 2016 and 2015 (in thousands):
The following table presents the balance in the allowance for loan losses and the unpaid principal balance of loans by portfolio segment and based on impairment method as of March 31, 2016 and December 31, 2015 (in thousands):
The following tables present additional detail regarding impaired loans, segregated by class, as of and for the three months ended March 31, 2016 and year ended December 31, 2015 (dollars in thousands). The unpaid principal balance represents the recorded balance prior to any partial charge-offs. The recorded investment represents customer balances net of any partial charge-offs recognized on the loans. The interest income recognized column represents all interest income reported after the loan became impaired.
During the three months ended March 31, 2016 and 2015, there were no troubled debt restructurings added. Troubled debt restructurings that were accruing were $2.2 million and $2.7 million as of March 31, 2016 and December 31, 2015, respectively. Troubled debt restructurings that were non-accruing were $89,000 and $94,000 as of March 31, 2016 and December 31, 2015. The following presents a rollfoward activity of troubled debt restructurings (in thousands, except number of loans):
Restructured loans are evaluated for impairment at each reporting date as part of the Company’s determination of the allowance for loan losses. |
Deposits |
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Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits | Deposits The composition of interest-bearing deposits was as follows (in thousands):
The composition of brokered deposits included in deposits was as follows (in thousands):
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Other Borrowed Funds |
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Borrowed Funds | Other Borrowed Funds The composition of other borrowed funds was as follows (in thousands):
Securities sold under agreements to repurchase are agreements in which the Bank acquires funds by selling securities to another party under a simultaneous agreement to repurchase the same securities at a specified price and date. These agreements represent a demand deposit account product to clients that sweep their balances in excess of an agreed upon target amount into overnight repurchase agreements. A collateral pledge agreement exists whereby at all times, the Bank must keep on hand, free of all other pledges, liens, and encumbrances, commercial real estate loans, first mortgage loans, and home equity loans with unpaid principal balances aggregating no less than 133% for first mortgage loans and 200% for home equity loans of the outstanding secured advances from the Federal Home Loan Bank of Chicago (“FHLB”). The Bank had $337.6 million and $338.0 million of loans pledged as collateral for FHLB advances as of March 31, 2016 and December 31, 2015, respectively. There were $25.0 million and $16.0 million in advances outstanding at March 31, 2016 and December 31, 2015, respectively. On June 29, 2015, the Company entered into a credit agreement with an unaffiliated bank for two credit facilities (secured borrowings). The credit facilities include a $4.0 million revolving line of credit, which had no balance at March 31, 2016 and a term loan with a balance of $10.0 million. The revolving line matures in 2020 and the term loan matures in 2021. The credit facilities have an annual interest rate of 2.25% plus LIBOR, which was 2.68% at March 31, 2016. The credit facilities are collateralized by the stock of the Bank. The Bank has entered into collateral pledge agreements whereby the Bank pledges commercial, commercial real estate, agricultural and consumer loans to the Federal Reserve Bank of Chicago Discount Window which allows the Bank to borrow on a short term basis, typically overnight. The Bank had $114.1 million and $100.1 million of loans pledged as collateral under these agreements as of March 31, 2016 and December 31, 2015, respectively. There were no borrowings outstanding at March 31, 2016 and December 31, 2015. |
Income Taxes |
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income tax expense recognized is as follows (in thousands):
The table below presents a reconciliation of the amount of income taxes determined by applying the U.S. federal income tax rate to pretax income (in thousands):
Deferred tax assets and liabilities consist of (in thousands):
Under U.S. GAAP, a valuation allowance against a net deferred tax asset is required to be recognized if it is more-likely-than-not that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax asset is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, forecasts of future income, applicable tax planning strategies and assessments of current and future economic and business conditions. As of March 31, 2016, the Company did not have a valuation allowance against the net deferred tax assets. The Company had a federal net operating loss carryforward of $8.2 million and $9.3 million at March 31, 2016 and December 31, 2015, respectively, which could be used to offset future regular corporate federal income tax. The net operating loss carryforward expires between the December 31, 2031 and December 31, 2033, fiscal tax years. The Company had an Illinois net operating loss carryforward of $9.7 million and $11.1 million at March 31, 2016 and December 31, 2015, respectively, that could be used to offset future regular corporate state income tax. This Illinois net operating loss carryforward will expire between the December 31, 2026 and December 31, 2028, fiscal tax years. |
Stock Compensation Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Compensation Plans | Stock Compensation Plans The Company maintains the First Community Financial Partners, Inc. Amended and Restated 2008 Equity Incentive Plan (the “2008 Equity Incentive Plan”), which assumed and incorporated all outstanding awards under previously adopted Company equity incentive plans. The 2008 Equity Incentive Plan allows for the granting of awards including stock options, restricted stock, restricted stock units, stock appreciation rights, stock awards and cash incentive awards. This plan was amended in December 2011 to increase the number of shares authorized for delivery by 1,000,000 shares. As a result, under the 2008 Equity Incentive Plan, 2,430,000 shares of Company common stock have been reserved for the granting of awards. Under the 2008 Equity Incentive Plan, options are to be granted at the fair value of the stock at the date of the grant and generally vest at 33-1/3% as of the first anniversary of the grant date and an additional 33-1/3% as of each successive anniversary of the grant date. Options generally must be exercised within 10 years after the date of grant. On August 15, 2013, the Company adopted the First Community Financial Partners, Inc. 2013 Equity Incentive Plan (the “2013 Equity Incentive Plan”). The 2013 Equity Incentive Plan allows for the granting of awards including nonqualified stock options, restricted stock, restricted stock units, stock appreciation rights, stock awards and cash incentive awards. This plan was amended in December 2014 to increase the number of shares authorized for delivery by 900,000 shares. As a result, under this plan, 1,000,000 shares of Company common stock have been reserved for the granting of awards. On April 21, 2016, the Company’s board of directors adopted the First Community Financial Partners, Inc. 2016 Equity Incentive Plan (the “2016 Equity Incentive Plan”). The 2016 Equity Incentive Plan is subject to the approval of the Company’s stockholders at the Company’s annual meeting of stockholders on May 19, 2016. If approved, the 2016 Incentive Plan will replace the 2008 Equity Incentive Plan and the 2013 Equity Incentive Plan. The following table summarizes data concerning stock options (aggregate intrinsic value in thousands):
The aggregate intrinsic value of a stock option in the table above represents the total pre-tax amount by which the current market value of the underlying stock exceeds the price of the option that would have been received by the option holders had all option holders exercised their options on March 31, 2016. There was $3.1 million and $1.3 million in intrinsic value of the stock options outstanding at March 31, 2016 and December 31, 2015. The intrinsic value will change when the market value of the Company’s stock changes. The fair value (present value of the estimated future benefit to the option holder) of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The Company recognized $45,000 and $20,000 of compensation expense related to the stock options for the three months ended March 31, 2016 and 2015. At March 31, 2016, there was $254,000 in compensation expense to be recognized related to outstanding stock options. Information pertaining to options outstanding at March 31, 2016 is as follows:
72,500 options vested during the three months ended March 31, 2016. The Company grants restricted stock units to select officers and directors within the organization under the 2008 Equity Incentive Plan and the 2013 Equity Incentive Plan, which entitle the holder to receive shares of Company common stock in the future, subject to certain terms, conditions and restrictions. Holders of restricted stock units are also entitled to receive additional units equal in value to any dividends paid with respect to the restricted stock units during the vesting period. Compensation expense for the restricted stock units equals the market price of the related stock at the date of grant and is amortized on a straight-line basis over the vesting period. In January 2016, restricted stock units were issued with certain performance conditions for a minimum of 52,301 shares, and up to a maximum of 131,948 shares. These performance conditions were expected to be met by the end of 2016 and the expense related to these awards will be recognized over the year. The Company recognized compensation expense of $203,000 and $206,000, respectively, for the three months ended March 31, 2016 and 2015, related to the 2008 Equity Incentive Plan and the 2013 Equity Incentive Plan. Total unrecognized compensation expense related to restricted stock grants was approximately $624,000 as of March 31, 2016. The following is a summary of nonvested restricted stock units:
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Concentrations, Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations, Commitments and Contingencies | Concentrations, Commitments and Contingencies Concentrations of credit risk: In addition to financial instruments with off-balance-sheet risk, the Company, to a certain extent, is exposed to varying risks associated with concentrations of credit. Concentrations of credit risk generally exist if a number of borrowers are engaged in similar activities and have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by economic or other conditions. The Company conducts substantially all of its lending activities in Will, Grundy, DuPage, Cook and Kane counties in Illinois and their surrounding communities. Loans granted to businesses are primarily secured by business assets, investment real estate, owner-occupied real estate or personal assets of commercial borrowers. Loans to individuals are primarily secured by personal residences or other personal assets. Since the Company’s borrowers and its loan collateral have geographic concentration in its primary market area, the Company could have exposure to declines in the local economy and real estate market. However, management believes that the diversity of its customer base and local economy, its knowledge of the local market, and its proximity to customers limits the risk of exposure to adverse economic conditions. Credit related financial instruments: The Company is party to credit related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance-sheet instruments. A summary of the Company’s commitments is as follows (in thousands):
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. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, is based on management’s credit evaluation of the party. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements and, generally, have terms of one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds collateral, which may include accounts receivable, inventory, property and equipment or, income producing properties, supporting those 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 Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount shown in the summary above. If the commitment were funded, the Company would be entitled to seek recovery from the customer. Contingencies: In the normal course of business, the Company is involved in various legal proceedings. In the opinion of management, any liability resulting from such pending proceedings would not be expected to have a material adverse effect on the Company’s consolidated financial statements. |
Capital and Regulatory Matters |
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Capital and Regulatory Matters | Capital and Regulatory Matters The Company and Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial results and condition. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. As of March 31, 2016, the Bank was well capitalized under the regulatory framework for prompt corrective action. Currently, to be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based, common equity tier 1 capital, and Tier 1 leverage ratios as set forth in the following table. Bank regulators can modify capital requirements as part of their examination process. In July 2013, the U.S. federal banking authorities approved the implementation of the Basel III regulatory capital reforms and issued rules effecting certain changes required by the Dodd-Frank Act (the “Basel III Rules”). The Basel III Rules are applicable to all U.S. banks that are subject to minimum capital requirements, as well as to bank and savings and loan holding companies other than “small bank holding companies” (generally non-public bank holding companies with consolidated assets of less than $1 billion). The Basel III Rules not only increased most of the required minimum regulatory capital ratios, but they introduced a new common equity Tier 1 capital ratio and the concept of a capital conservation buffer. The Basel III Rules also expanded the definition of capital by establishing criteria that instruments must meet to be considered additional Tier 1 capital (Tier 1 capital in addition to common equity) and Tier 2 capital. A number of instruments that generally qualified as Tier 1 capital will not qualify, or their qualifications will change when the Basel III rules are fully implemented. The Basel III Rules also permitted banking organizations with less than $15.0 billion in assets to retain, through a one-time election, the existing treatment for accumulated other comprehensive income, which currently does not affect regulatory capital. The Company made this one time election in the first quarter of 2015. The Basel III Rules have maintained the general structure of the current prompt corrective action framework, while incorporating the increased requirements. The prompt corrective action guidelines were also revised to add the common equity Tier 1 capital ratio. In order to be a “well-capitalized” depository institution under the new regime, a bank and holding company must maintain a common equity Tier 1 capital ratio of 6.5% or more; a Tier 1 capital ratio of 8% or more; a total capital ratio of 10% or more; and a leverage ratio of 5% or more. The Company and Bank became subject to the new Basel III Rules on January 1, 2015, with phase-in periods for many of the changes. Management believes, as of March 31, 2016 and December 31, 2015, the Company and the Bank met all capital adequacy requirements to which they were subject.
Under the Illinois Banking Act, Illinois-chartered banks generally may not pay dividends in excess of their net profits, after first deducting their losses (including any accumulated deficit) and provision for loan losses. The payment of dividends by any bank 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. Moreover, the Federal Deposit Insurance Corporation (“FDIC”) prohibits the payment of any dividends by a bank if the FDIC determines such payment would constitute an unsafe or unsound practice. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 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. ASC Topic 820 requires the use of valuation techniques that are consistent with the market 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. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Our valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. 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: The fair value of the Company’s securities available for sale is determined using Level 2 inputs from independent pricing services. Level 2 inputs consider observable data that may include dealer quotes, market spread, cash flows, treasury yield curve, trading levels, credit information and terms, among other factors. Certain state and political subdivision securities are not valued based on observable transactions and are, therefore, classified as Level 3. Derivatives: The Bank provides clients with interest rate swap transactions and offset the transactions with interest rate swap transactions with another financial institution as a means of providing loan terms agreeable to both parties. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative and classified as Level 2. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including LIBOR rate curves. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):
The significant unobservable inputs used in the Level 3 fair value measurements of the Company’s state and political subdivisions in the table above primarily relate to the discounted cash flows including the bond’s coupon, yield and expected maturity date. The Company did not have any transfers between Level 1 and Level 2 of the fair value hierarchy during the three months ended March 31, 2016. The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels. The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value (in thousands):
Financial Instruments Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with generally accepted accounting principles. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are set forth below:
The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value:
Impaired loans: Impaired loans are evaluated and valued at the time the loan is identified as impaired, at the lower of cost or fair value. Fair value is measured based on the value of the collateral securing these loans and is classified at a Level 3 in the fair value hierarchy. The fair value for an impaired loan is generally determined utilizing appraisals for real estate loans and value guides or consultants for commercial and industrial loans and other loans secured by items such as equipment, inventory, accounts receivable or vehicles. In substantially all instances, a 10% discount is utilized for selling costs which includes broker fees and closing costs. It is our general practice to obtain updated values on impaired loans every twelve to eighteen months. In instances where the appraisal is greater than one year old, an additional discount is considered ranging from 5% to 15%. Any adjustment is based on either comparisons from other recent appraisals obtained by the Company on like properties or using third party resources such as real estate brokers or Reis, Inc., a nationally recognized provider of commercial real estate information including real estate values. As of March 31, 2016 and December 31, 2015, approximately $2.6 million, or 26%, and $3.1 million, or 32%, of impaired loans were evaluated for impairment using appraisals performed within twelve months of these dates, respectively. Loans Held for Sale: The fair value of loans held for sale is determined using quoted secondary market prices and classified as Level 2. Foreclosed assets: Foreclosed assets upon initial recognition are measured and reported at fair value through a charge-off to the allowance for loan losses based upon the fair value of the foreclosed asset. Fair values are generally based on third party appraisals of the property resulting in Level 3 classification. The appraised value is discounted by 10% for estimated selling costs which includes broker fees and closing costs and appraisals are obtained annually. Disclosures about Fair Value of Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet. Fair value is determined under the framework established by Fair Value Measurements, based upon criteria noted above. Certain financial instruments and all non-financial instruments are excluded from the disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value at the Company. The methodologies for measuring fair value of financial assets and financial liabilities that are measured at fair value on a recurring or nonrecurring basis are discussed above. The methodologies for other financial assets and financial liabilities are discussed below. The following methods and assumptions were used by the Company in estimating the fair value disclosures of its other financial instruments: Cash and due from banks: The carrying amounts reported in the consolidated balance sheets for cash and due from banks and approximate their fair values. Interest-bearing deposits in banks: The carrying amounts of interest-bearing deposits maturing within one year approximate their fair values. Nonmarketable equity securities: These securities are either redeemable at par or current redemption values; therefore, market value equals cost. Loans: For those variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for fixed rate and all other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers with similar credit quality. Deposits: The fair values disclosed for deposits with no defined maturities are equal to their carrying amounts, which represent the amount payable on demand. The carrying amounts for variable-rate certificates of deposit approximate their fair value at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Subordinated debt: The fair values of the Company’s subordinated debt are estimated using discounted cash flows based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Other borrowed funds: The carrying amounts of securities sold under repurchase agreements, term notes, revolving lines of credit and mortgage notes payable approximate their fair values. Accrued interest receivable and payable: The carrying amounts of accrued interest approximate their fair values. Off-balance-sheet instruments: Fair values for the Company’s off-balance-sheet lending commitments (standby letters of credit and commitments to extend credit) are based on fees currently charged to enter into similar agreements taking into account the remaining term of the agreements and the counterparties’ credit standing. The fair value of these commitments is not material. The estimated fair values of the Company’s financial instruments are as follows as of March 31, 2016 (in thousands):
The estimated fair values of the Company’s financial instruments are as follows as of December 31, 2015 (in thousands):
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Derivatives and Hedging Activities |
3 Months Ended |
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Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities Derivative contracts entered into by the Bank are limited to those that do not qualify for hedge accounting treatment. The Bank provides clients with interest rate swap transactions and offsets the transactions with interest rate swap transactions with another financial institution as a means of providing loan terms agreeable to both parties. As of March 31, 2016 and December 31, 2015, there were $1.3 million and $1.3 million, respectively, outstanding notional values of swaps where the Bank receives a variable rate of interest and the client receives a fixed rate of interest. This is offset with counterparty contracts where the Bank pays a floating rate of interest and receives a fixed rate of interest. The estimated fair value of interest rate swaps was $95,000 and $95,000 as of March 31, 2016 and December 31, 2015, respectively, and was recorded gross as an asset and a liability. Swaps with clients and third-party financial institutions are carried at fair value with adjustments recorded in other income. The gross amount of the adjustments to the income statement were $0 and $18,000 during the three months ended March 31, 2016 and March 31, 2015, respectively. |
Pending Merger Transaction |
3 Months Ended |
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Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Pending Merger Transaction | Pending Merger Transaction On March 14, 2016, First Community entered into an Agreement and Plan of Merger (the “Merger Agreement”) with the Bank, First Mazon Bancorp, Inc. a Delaware corporation (“First Mazon”), and Mazon State Bank, an Illinois state chartered commercial bank and wholly-owned subsidiary of First Mazon, pursuant to which Mazon State Bank will merge into the Bank, with the Bank surviving the merger (the “Merger”), for cash consideration to First Mazon of $8.5 million. At the time of the Merger, Mazon State Bank’s branches will become branches of the Bank. The closing of the Merger is expected to occur during the third quarter of 2016, subject to customary closing conditions, including regulatory approval and the approval of First Mazon’s stockholders. During the first quarter of 2016, the Company incurred $100,000 of professional fees related to the Merger. |
Basis of Presentation (Policies) |
3 Months Ended |
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Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Emerging Growth Company Critical Accounting Policy Disclosure | The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act (the “JOBS Act”). Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company elected to take advantage of the benefits of this extended transition period. Management anticipates that the Company will no longer be considered an emerging growth company, and thus will no longer be eligible to use this extended transition period, after the fiscal year ending December 31, 2018. |
Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share | The following table presents a reconciliation of the number of shares used in the calculation of basic and diluted earnings per common share (dollars in thousands, except per share data).
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Securities Available for Sale (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amortized Cost and Fair Value of Securities Available for Sale | The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follows (in thousands):
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Securities Segregated by Maturity | Therefore, these securities are segregated in the following maturity summary:
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Unrealized Losses and Fair Value Aggregated by Investment Category | Unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position are summarized as of March 31, 2016 and December 31, 2015 are as follows:
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Loans (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the Balances of Loans | A summary of the balances of loans follows (in thousands):
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Past Due Financing Receivables | The following table presents the contractual aging of the recorded investment in past due and non-accrual loans by class of loans as of March 31, 2016 and December 31, 2015 (in thousands):
The following tables present the risk category of loans evaluated by internal asset classification based on the most recent analysis performed and the contractual aging as of March 31, 2016 and December 31, 2015 (in thousands):
* Non-performing loans include those on non-accrual status and those past due 90 days or more and still on accrual. |
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Allowance for Loan Losses by Portfolio Segment | The following table provides additional detail of the activity in the allowance for loan losses, by portfolio segment, for the three months ended March 31, 2016 and 2015 (in thousands):
The following table presents the balance in the allowance for loan losses and the unpaid principal balance of loans by portfolio segment and based on impairment method as of March 31, 2016 and December 31, 2015 (in thousands):
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Impaired Financing Receivables | The following tables present additional detail regarding impaired loans, segregated by class, as of and for the three months ended March 31, 2016 and year ended December 31, 2015 (dollars in thousands). The unpaid principal balance represents the recorded balance prior to any partial charge-offs. The recorded investment represents customer balances net of any partial charge-offs recognized on the loans. The interest income recognized column represents all interest income reported after the loan became impaired.
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Roll Forward Activity of Troubled Debt Restructuring Loans | The following presents a rollfoward activity of troubled debt restructurings (in thousands, except number of loans):
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Deposits (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composition of Interest-bearing Deposits | The composition of interest-bearing deposits was as follows (in thousands):
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Composition of Brokered Deposits | The composition of brokered deposits included in deposits was as follows (in thousands):
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Other Borrowed Funds (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Borrowed Funds | The composition of other borrowed funds was as follows (in thousands):
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Income Taxes (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense Recognized | Income tax expense recognized is as follows (in thousands):
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Schedule of Effective Income Tax Rate Reconciliation | The table below presents a reconciliation of the amount of income taxes determined by applying the U.S. federal income tax rate to pretax income (in thousands):
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Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities consist of (in thousands):
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Stock Compensation Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | The following table summarizes data concerning stock options (aggregate intrinsic value in thousands):
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Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable | Information pertaining to options outstanding at March 31, 2016 is as follows:
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Schedule of Nonvested Restricted Stock Units Activity | The following is a summary of nonvested restricted stock units:
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Concentrations, Commitments and Contingencies (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Commitments | A summary of the Company’s commitments is as follows (in thousands):
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Capital and Regulatory Matters (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] |
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands):
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables present additional information about assets and liabilities measured at fair value on a recurring basis for which the Company has utilized Level 3 inputs to determine fair value (in thousands):
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Fair Value Measurements, Nonrecurring | Assets measured at fair value on a nonrecurring basis are set forth below:
The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value:
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Fair Value, by Balance Sheet Grouping | The estimated fair values of the Company’s financial instruments are as follows as of March 31, 2016 (in thousands):
The estimated fair values of the Company’s financial instruments are as follows as of December 31, 2015 (in thousands):
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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Earnings Per Share [Abstract] | ||
Net income applicable to common shareholders | $ 2,028 | $ 1,606 |
Weighted average common shares outstanding for basic earnings per common share (in shares) | 17,125,928 | 16,768,908 |
Dilutive effect of stock-based compensation (in shares) | 325,426 | 189,558 |
Weighted average shares outstanding for diluted earnings per common share (in shares) | 17,451,354 | 16,958,466 |
Basic income per common share (in dollars per share) | $ 0.12 | $ 0.10 |
Diluted income per common share (in dollars per share) | $ 0.12 | $ 0.09 |
Securities Available for Sale (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Securities pledged as collateral | $ 68,100 | $ 82,200 | |
Gain on sale of securities | $ 0 | $ 21 |
Securities Available for Sale (Securities Segregated by Maturity Dates) (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Amortized Cost | ||
Within 1 year | $ 4,044 | |
Over 1 year through 5 years | 33,244 | |
Over 5 years through 10 years | 36,949 | |
Over 10 years | 36,727 | |
Residential collateralized mortgage obligations and mortgage backed securities | 89,149 | |
Amortized Cost | 200,113 | $ 203,959 |
Fair Value | ||
Within 1 year | 4,077 | |
Over 1 year through 5 years | 33,809 | |
Over 5 years through 10 years | 37,863 | |
Over 10 years | 38,094 | |
Residential collateralized mortgage obligations and mortgage backed securities | 90,031 | |
Fair Value | $ 203,874 | $ 205,604 |
Loans (Unpaid Principal Balance of Loans Modified in a Troubled Debt Restructuring) (Details) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016
USD ($)
loan
|
Mar. 31, 2016
USD ($)
contract
|
Dec. 31, 2015
USD ($)
|
|
Receivables [Abstract] | |||
Additions to troubled debt restructurings (in loans) | 0 | 0 | |
Troubled debt restructuring, accruing | $ 2,200 | $ 2,200 | $ 2,700 |
Troubled debt restructuring, non-accruing | $ 89 | $ 89 | $ 94 |
Loans (Rollforward Activity of Troubled Debt Restructurings) (Details) - 3 months ended Mar. 31, 2016 $ in Thousands |
USD ($) |
loan |
contract |
---|---|---|---|
Recorded Investment | |||
Balance, beginning | $ 2,832 | ||
Additions to troubled debt restructurings | 0 | ||
Removal of troubled debt restructurings | (519) | ||
Charge-off related to troubled debt restructurings | 0 | ||
Transfers to other real estate owned | 0 | ||
Repayments and other reductions | (17) | ||
Balance, ending | $ 2,296 | ||
Number of Loans | |||
Balance, beginning (in loans) | loan | 6 | ||
Additions to troubled debt restructurings (in loans) | 0 | 0 | |
Removal of troubled debt restructurings (in loans) | loan | (2) | ||
Charge-off related to troubled debt restructurings (in loans) | loan | 0 | ||
Transfers to other real estate owned (in loans) | loan | 0 | ||
Repayments and other reductions (in loans) | loan | 0 | ||
Balance, ending (in loans) | loan | 4 |
Deposits (Composition of Interest-Bearing Deposits) (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deposits [Abstract] | ||
NOW and money market accounts | $ 342,009 | $ 336,197 |
Savings | 38,481 | 36,207 |
Time deposit certificates of $250,000 or more | 70,893 | 69,961 |
Time deposit certificates of $100,000 to $250,000 | 125,959 | 127,091 |
Other time deposit certificates | 97,224 | 100,472 |
Interest-bearing deposit liabilities | $ 674,566 | $ 669,928 |
Deposits (Composition of Brokered Deposits) (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deposits [Abstract] | ||
NOW and money market accounts | $ 17,930 | $ 35,271 |
Time deposit certificates | 13,878 | 11,874 |
Noninterest-bearing deposit liabilities | $ 31,808 | $ 47,145 |
Income Taxes (Income Tax Expense Recognized) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||
Current | $ 96 | $ (351) |
Deferred | 793 | 1,218 |
Total income tax (benefit) expense | $ 889 | $ 867 |
Income Taxes (Reconciliation) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||
Federal income tax at statutory rate | $ 1,021 | $ 866 |
Increase (decrease) due to: | ||
Federal tax exempt | (189) | (123) |
State income tax, net of federal benefit | 149 | 126 |
Benefit of income taxed at lower rate | (29) | (25) |
Tax exempt income | (6) | (8) |
Cash surrender value of life insurance | (48) | (11) |
Other | (9) | 42 |
Total income tax (benefit) expense | $ 889 | $ 867 |
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred tax assets: | ||
Allowance for loan losses | $ 4,116 | $ 4,169 |
Merger expenses | 137 | 226 |
Organization expenses | 219 | 140 |
Net operating losses | 3,294 | 3,774 |
Contribution carryforward | 5 | 5 |
Restricted stock | 87 | 0 |
Non-qualified stock options | 661 | 644 |
Foreclosed assets | 193 | 315 |
Tax credits | 355 | 334 |
Other | 150 | 135 |
Total deferred tax assets | 9,217 | 9,742 |
Deferred tax liabilities: | ||
Depreciation | (177) | (186) |
Unrealized gains on securities available for sale | (1,466) | (642) |
Other | 0 | 277 |
Total deferred tax liabilities | (1,643) | (551) |
Net deferred tax asset | $ 7,574 | $ 9,191 |
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Federal | ||
Income Tax Contingency [Line Items] | ||
Net operating loss carryforwards | $ 8.2 | $ 9.3 |
Illinois | ||
Income Tax Contingency [Line Items] | ||
Net operating loss carryforwards | $ 9.7 | $ 11.1 |
Stock Compensation Plans (Summary of Nonvested Restricted Shares) (Details) - Restricted Stock |
3 Months Ended |
---|---|
Mar. 31, 2016
$ / shares
shares
| |
Number of Shares | |
Outstanding at beginning of year (in shares) | shares | 25,000 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Canceled (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Non-vested shares, end of period (in shares) | shares | 25,000 |
Weighted Average Grant Date Fair Value (in dollars per share) | |
Outstanding at beginning of year | $ / shares | $ 5.14 |
Granted | $ / shares | 0.00 |
Vested | $ / shares | 0.00 |
Canceled | $ / shares | 0.00 |
Forfeited | $ / shares | 0.00 |
Nonvested shares, end of period | $ / shares | $ 5.14 |
Concentrations, Commitments and Contingencies (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments to extend credit | $ 191,426 | $ 179,517 |
Standby letters of credit | 7,156 | 10,353 |
Performance letters of credit | 1,010 | 1,088 |
Total | $ 199,592 | $ 190,958 |
Fair Value Measurements (Additional Information of Assets and Liabilities for which the Company has Utilized Level 3 Inputs to Determine Fair Value) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | $ 1,504 | $ 1,514 |
Total gains or losses (realized/unrealized) included in other comprehensive income | 0 | 0 |
Included in earnings | 0 | 0 |
Purchases | 0 | 0 |
Paydowns and maturities | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $ 1,504 | $ 1,514 |
Derivatives and Hedging Activities (Details) - Not Designated as Hedging Instrument - Interest Rate Swap - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Derivative [Line Items] | |||
Derivative notional value | $ 1,300 | $ 1,300 | |
Derivative financial instruments | 95 | $ 95 | |
Derivative, gain (loss) on derivative, net | $ 0 | $ 18 |
Pending Merger Transaction (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 14, 2016 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Business Acquisition [Line Items] | |||
Professional fees | $ 392 | $ 380 | |
Mazon State Bank | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 8,500 | ||
Professional fees | $ 100 |
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