10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

LAPORTE BANCORP, INC.

(Exact name of Registrant as Specified in Its Charter)

Maryland	001-35684	35-2456698
(State or Other Jurisdiction of	(Commission	(I.R.S. Employer
Incorporation or Organization)	File Number)	Identification Number)

710 Indiana Avenue

La Porte, IN 46350

(219) 362-7511

(Address, Including Zip Code, and Telephone Number, Including Area Code, of

Registrant’s Principal Executive Officers)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   YES  x    NO  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   YES  x    NO  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES  ¨    NO  x

Number of shares of common stock outstanding at April 29, 2016: 5,580,115

TABLE OF CONTENTS

	Page Number
PART I – FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements – LaPorte Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)	3
Consolidated Statements of Income (Unaudited)	4
Consolidated Statements of Comprehensive Income (Unaudited)	5
Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)	6
Consolidated Statements of Cash Flows (Unaudited)	7
Condensed Notes to Consolidated Financial Statements (Unaudited)	9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3. Quantitative and Qualitative Disclosures About Market Risk	42
Item 4. Controls and Procedures	44
PART II – OTHER INFORMATION
Item 1. Legal Proceedings	44
Item 1A. Risk Factors	45
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3. Defaults Upon Senior Securities	45
Item 4. Mine Safety Disclosures	45
Item 5. Other Information	45
Item 6. Exhibits	45
Signatures	46

PART I FINANCIAL INFORMATION

ITEM 1 CONSOLIDATED FINANCIAL STATEMENTS

LAPORTE BANCORP, INC.

CONSOLIDATED BALANCE SHEETS

	March 31, 2016			December 31, 2015
	(Dollars in thousands, except share data)
	(Unaudited)
ASSETS
Cash and due from financial institutions	$	11,361		$	18,459
Interest-earning time deposits in other financial institutions	14,532			13,599
Securities available-for-sale	122,241			122,243
Loans held for sale, at fair value	686			3,581
Loans, net of allowance for loan losses of $3,636 at March 31, 2016 and $3,634 at December 31, 2015	337,451			341,552
Mortgage servicing rights	321			334
Other real estate owned	2,170			2,200
Premises and equipment, net	8,477			8,608
Federal Home Loan Bank stock, at cost	4,029			4,029
Goodwill	8,431			8,431
Other intangible assets	142			153
Bank owned life insurance	15,140			15,034
Accrued interest receivable and other assets	3,943			4,968
Total assets	$	528,924		$	543,191
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest bearing	$	65,906		$	62,020
Interest bearing	295,250			328,939
Total deposits	361,156			390,959
Federal Home Loan Bank advances	69,132			55,000
Subordinated debentures	5,155			5,155
Accrued interest payable and other liabilities	6,758			6,529
Total liabilities	442,201			457,643
Commitments and contingent liabilities
Shareholders’ equity:
Preferred stock, no par value; 50,000,000 shares authorized; none issued	—			—
Common stock, $0.01 par value; 100,000,000 shares authorized at March 31, 2016 and December 31, 2015; 5,580,115 and 5,578,223 shares issued and outstanding at March 31, 2016 and December 31, 2015	56			56
Additional paid-in capital	40,421			40,120
Retained earnings	48,312			47,940
Accumulated other comprehensive income, net of tax expense of $395 at March 31, 2016 and $162 at December 31, 2015	767			310
Unearned Employee Stock Ownership Plan (ESOP) shares	(2,833		)	(2,878		)
Total shareholders’ equity	86,723			85,548
Total liabilities and shareholders’ equity	$	528,924		$	543,191

See accompanying condensed notes to consolidated financial statements (unaudited).

3

LAPORTE BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended March 31,
	2016			2015
	(Dollars in thousands, except per share data)
Interest and dividend income:
Loans, including fees	$	4,124		$	3,601
Taxable securities	327			410
Tax exempt securities	368			408
Federal Home Loan Bank stock	43			43
Other interest income	73			19
Total interest and dividend income	4,935			4,481
Interest expense:
Deposits	340			294
Federal Home Loan Bank advances	309			268
Subordinated debentures	47			42
Short-term borrowings	—			1
Total interest expense	696			605
Net interest income	4,239			3,876
Provision for loan losses	—			105
Net interest income after provision for loan losses	4,239			3,771
Noninterest income:
Service charges on deposit accounts	75			76
ATM and debit card fees	105			103
Wire transfer fees	118			78
Earnings on bank owned life insurance, net	106			105
Net gains on mortgage banking activities	156			130
Loan servicing fees, net	98			13
Net gains on sales of securities available-for-sale	—			50
Gains (losses) on other assets	(30		)	10
Other income	38			37
Total noninterest income	666			602
Noninterest expense:
Salaries and employee benefits	2,150			1,934
Legal and other consulting fees	659			21
Occupancy and equipment	429			468
Data processing	178			153
Bank examination fees	114			112
Collection and other real estate owned	98			31
FDIC insurance	69			70
Advertising	42			82
Amortization of intangible assets	11			14
Other expenses	409			380
Total noninterest expense	4,159			3,265
Income before income taxes	746			1,108
Income tax expense	151			156
Net income	$	595		$	952
Earnings per share (Note 3):
Basic	$	0.11		$	0.18
Diluted	0.11			0.18

See accompanying condensed notes to consolidated financial statements (unaudited).

4

LAPORTE BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended March 31,
	2016			2015
	(Dollars in thousands)
Net income	$	595		$	952
Other comprehensive income:
Unrealized gains on securities:
Unrealized holding gains arising during the period	1,299			1,012
Reclassification adjustment for net gains included in net income	—			(50		)
Gross unrealized gains	1,299			962
Related income tax expense	(442		)	(327		)
Net unrealized gains	857			635
Unrealized losses on cash flow hedges:
Gross unrealized losses	(607		)	(449		)
Related income tax benefit	207			153
Net unrealized losses	(400		)	(296		)
Total other comprehensive income	457			339
Comprehensive income	$	1,052		$	1,291

See accompanying condensed notes to consolidated financial statements (unaudited).

5

LAPORTE BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

	Common Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income, Net of Tax		Unearned ESOP Shares			Total
	(Dollars in thousands, except per share data)
Balance at January 1, 2015	$	57		$	40,609		$	44,258		$	522	$	(3,058	)	$	82,388
Net income	—			—			952			—		—			952
Other comprehensive income	—			—			—			339		—			339
Cash dividends on common stock, $0.04 per share	—			—			(225		)	—		—			(225		)
Repurchase of common stock, 53,874 shares	(1		)	(675		)	—			—		—			(676		)
ESOP shares earned, 5,621 shares	—			28			—			—		45			73
Exercise of stock options, 4,472 shares	—			29			—			—		—			29
Stock based compensation expense	—			173			—			—		—			173
Balance at March 31, 2015	$	56		$	40,164		$	44,985		$	861	$	(3,013	)	$	83,053
Balance at January 1, 2016	$	56		$	40,120		$	47,940		$	310	$	(2,878	)	$	85,548
Net income	—			—			595			—		—			595
Other comprehensive income	—			—			—			457		—			457
Cash dividends on common stock, $0.04 per share	—			—			(223		)	—		—			(223		)
ESOP shares earned, 5,621 shares	—			39			—			—		45			84
Exercise of stock options, 1,892 shares	—			16			—			—		—			16
Stock based compensation expense	—			170			—			—		—			170
Tax benefit related to stock based compensation	—			76			—			—		—			76
Balance at March 31, 2016	$	56		$	40,421		$	48,312		$	767	$	(2,833	)	$	86,723

See accompanying condensed notes to consolidated financial statements (unaudited).

6

LAPORTE BANCORP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended March 31,
	2016			2015
	(Dollars in thousands)
Cash flows from operating activities:
Net income	$	595		$	952
Adjustments to reconcile net income to net cash from operating activities:
Depreciation	142			140
Provision for loan losses	—			105
Net gains on securities available-for-sale	—			(50		)
Net amortization on securities available-for-sale	120			192
Net gains on sales of loans	(146		)	(124		)
Originations of loans held for sale	(4,166		)	(3,354		)
Proceeds from sales of loans held for sale	7,207			3,729
Recognition of mortgage servicing rights	(10		)	(6		)
Amortization of mortgage servicing rights	15			13
Net change in mortgage servicing rights valuation allowance	8			14
Net (gains) losses on sales of other real estate owned	—			(10		)
Write down of other real estate owned and assets held for sale	47			—
Earnings on bank owned life insurance, net	(106		)	(105		)
Amortization of intangible assets	11			14
ESOP compensation expense	84			73
Stock based compensation expense	170			173
Change in assets and liabilities:
Accrued interest receivable and other assets	773			192
Accrued interest payable and other liabilities	(378		)	(58		)
Net cash provided by operating activities	4,366			1,890
Cash flows from investing activities:
Net change in interest-earning time deposits at other financial institutions	(933		)	980
Proceeds from sales of securities available-for-sale	—			10,262
Proceeds from maturities, calls, and principal repayments of securities available-for-sale	2,781			5,181
Purchases of securities available-for-sale	(1,600		)	—
Net change in loans	4,101			(22,346		)
Proceeds from sales of other real estate owned	—			35
Premises and equipment expenditures, net	(11		)	(124		)
Net cash provided by (utilized for) investing activities	4,338			(6,012		)
Cash flows from financing activities:
Net change in deposits	(29,803		)	11,936
Repayment of FHLB long-term advances	—			(5,000		)
Net change in FHLB short-term advances	14,132			81
Net change in short-term borrowings	—			500
Stock options exercised	16			29
Tax benefit related to stock-based compensation	76			—
Dividends paid on common stock	(223		)	(225		)
Repurchase of common stock	—			(676		)
Net cash (utilized for) provided by financing activities	(15,802		)	6,645
Net (decrease) increase in cash and cash equivalents	(7,098		)	2,523
Cash and cash equivalents at beginning of period	18,459			8,698
Cash and cash equivalents at end of period	$	11,361		$	11,221

(continued)

7

LAPORTE BANCORP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(Unaudited)

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Supplemental cash flow information:
Cash paid during the period for:
Interest	$	689	$	607
Income taxes	53		—
Supplemental noncash disclosures:
Transfers from loans receivable to other real estate owned	$	—	$	127

See accompanying condensed notes to consolidated financial statements (unaudited).

8

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 – BASIS OF PRESENTATION AND CONSOLIDATION

The unaudited consolidated financial statements include the accounts of LaPorte Bancorp, Inc., a Maryland corporation (the “Bancorp”), its wholly owned subsidiaries, LSB Risk Management, Inc., The LaPorte Savings Bank (the “Bank”), the Bank’s wholly-owned subsidiary, LSB Investments, Inc. (“LSB Inc.”), and LSB Inc.’s wholly-owned subsidiary, LSB Real Estate, Inc. (“LSB REIT”), together referred to as the “Company.” The Bancorp was formed in June 2012. LSB Risk Management, LLC was formed on December 27, 2013 as a captive insurance company and is incorporated in Nevada. LSB Inc. was formed on October 1, 2011 to manage a portion of the Bank’s investment portfolio and is incorporated in Nevada. LSB REIT, a real estate investment trust, was formed on January 1, 2013 to invest in assets secured by residential or commercial real estate properties originated by the Bank and is incorporated in Maryland. Intercompany transactions and balances are eliminated in consolidation.

The unaudited consolidated financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial statements and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”). In the opinion of management, the unaudited consolidated financial statements contain all material adjustments (consisting of normal recurring accruals) and disclosures which are necessary to make the financial statements not misleading and for a fair presentation of the financial position and results of operations for the interim periods presented herein.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the SEC. Accordingly, the interim consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 10-K of the Company for the fiscal year ended December 31, 2015. The results for the three month periods ended March 31, 2016 may not indicate the results to be expected for any other interim period or for the full year ending December 31, 2016.

Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation.

NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers (Topic 606).” This ASU clarifies that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this Update recognized at the date of initial application. The Company is still evaluating the impact relating to adopting this standard.

In June 2014, the FASB issued ASU No. 2014-12 “Compensation - Stock Compensation (Topic 718) - Accounting for Share Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 became effective for interim and annual periods beginning after December 15, 2015 and did not have a significant impact on the Company’s financial condition or results of operations.

In April 2015, the FASB issued ASU No. 2015-05 “Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 became effective for interim and annual periods beginning after December 15, 2015 and did not have a significant impact on the Company’s financial condition or results of operations.

9

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

In January 2016, the FASB issued ASU No. 2016-01 “Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU is intended to improve the recognition and measurement of financial instruments by requiring equity investments to be measured at fair value with changes in fair value recognized in net income; requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured and amortized at cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. The amendments should be applied through a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. The Company will be evaluating the impact of adopting this ASU.

In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842).” This ASU requires lessees and lessors to classify leases as either capital leases or operating leases. The ASU also requires lessees to recognized assets and liabilities for all leases with the exception of short term leases. There are new disclosure requirements for these leases which will provide users of financial statements with information to understand the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 will become effective for fiscal years beginning after December 31, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company will be evaluating the impact of adopting this ASU.

In March 2016, the FASB issued ASU No. 2016-05 “Derivatives and Hedging (Topic 815).” This ASU applies to all reporting entities for which there is a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815. The ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria as identified in Topic 815 continue to be met. ASU 2016-05 will become effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company will be evaluating the impact of adopting this ASU.

In March 2016, the FASB issued ASU No. 2016-09 “Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting.” This ASU requires all income tax effects of awards to be recognized in teh income statement when the awards vest or are settled. It also allows an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election for forfeitures as they occur. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company will be evaluating the impact of adopting this ASU.

NOTE 3 – EARNINGS PER SHARE

Basic earnings per common share is determined by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding for the period. Employee Stock Ownership Plan (“ESOP”) shares are considered outstanding for this calculation unless unearned. Diluted earnings per common share is determined by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding for the period, adjusted for the dilutive effect of common share equivalents.

10

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The factors used in the earnings per common share computation follow:

	Three Months Ended March 31,
	2016			2015
	(Dollars in thousands, except per share data)
Basic:
Net income	$	595		$	952
Weighted average common shares outstanding	5,579,678			5,627,687
Less: Average unallocated ESOP shares	(356,965		)	(379,449		)
Average shares	5,222,713			5,248,238
Basic earnings per common share	$	0.11		$	0.18
Diluted:
Net income	$	595		$	952
Weighted average common shares outstanding for basic earnings per common share	5,222,713			5,248,238
Add: Dilutive effects of assumed exercises of stock options	162,603			109,750
Average shares and dilutive potential common shares	5,385,316			5,357,988
Diluted earnings per common share	$	0.11		$	0.18

NOTE 4 – SECURITIES AVAILABLE-FOR-SALE

The amortized cost and fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:

	March 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. federal agency obligations	$	11,052	$	70	$	(1	)	$	11,121
State and municipal	49,976		2,621		—			52,597
Mortgage-backed securities – residential	16,585		263		(9		)	16,839
Government agency sponsored collateralized mortgage obligations	40,595		352		(211		)	40,736
Corporate debt securities	1,000		—		(52		)	948
Total	$	119,208	$	3,306	$	(273	)	$	122,241

11

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. federal agency obligations	$	9,442	$	1	$	(71	)	$	9,372
State and municipal	50,020		2,397		(17		)	52,400
Mortgage-backed securities – residential	17,671		98		(73		)	17,696
Government agency sponsored collateralized mortgage obligations	42,376		139		(679		)	41,836
Corporate debt securities	1,000		—		(61		)	939
Total	$	120,509	$	2,635	$	(901	)	$	122,243

At March 31, 2016 and December 31, 2015, all of our mortgage-backed securities were issued by U.S. government-sponsored enterprises and all of our collateralized mortgage obligations were issued by either U.S. government-sponsored enterprises or the U.S. Small Business Administration.

Securities with unrealized losses at March 31, 2016 and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

	March 31, 2016
	Continuing Unrealized Loss For Less Than 12 Months					Continuing Unrealized Loss For 12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(Dollars in thousands)
U.S. federal agency obligations	$	1,099	$	(1	)	$	—	$	—		$	1,099	$	(1	)
Mortgage-backed securities – residential	900		(3		)	813		(6		)	1,713		(9		)
Government agency sponsored collateralized mortgage obligations	3,087		(32		)	15,667		(179		)	18,754		(211		)
Corporate debt securities	—		—			948		(52		)	948		(52		)
Total temporarily impaired	$	5,086	$	(36	)	$	17,428	$	(237	)	$	22,514	$	(273	)

	December 31, 2015
	Continuing Unrealized Loss For Less Than 12 Months					Continuing Unrealized Loss For 12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(Dollars in thousands)
U.S. federal agency obligations	$	8,371	$	(71	)	$	—	$	—		$	8,371	$	(71	)
State and municipal	4,512		(14		)	856		(3		)	5,368		(17		)
Mortgage-backed securities – residential	9,259		(48		)	809		(25		)	10,068		(73		)
Government agency sponsored collateralized mortgage obligations	11,200		(136		)	18,148		(543		)	29,348		(679		)
Corporate debt securities	—		—			939		(61		)	939		(61		)
Total temporarily impaired	$	33,342	$	(269	)	$	20,752	$	(632	)	$	54,094	$	(901	)

12

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Management periodically evaluates each investment security for potential other-than-temporary impairment, relying primarily on industry analyst reports and observation of market conditions and interest rate fluctuations. The unrealized losses on the Company’s investments in U.S. federal agency obligations, mortgage-backed securities, agency collateralized mortgage obligations, and corporate debt securities were a result of changes in interest rates and not a result of a decline in credit quality. Management believes it will be able to collect all amounts due according to the contractual terms of the underlying investment securities and that the noted declines in fair value are considered temporary. The unrealized losses on the Company’s investment in state and municipal securities were also caused by changes in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell the securities and is not more likely than not to be required to sell them before their anticipated recovery.

Proceeds from sales of securities available-for-sale were as follows:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Proceeds	$	—	$	10,262
Gross gains	—		84
Gross losses	—		(34		)

The amortized cost and fair value of debt securities at March 31, 2016 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities and collateralized mortgage obligations (“CMO”), are shown separately.

	March 31, 2016
	Amortized Cost		Fair Value
	(Dollars in thousands)
Due in one year or less	$	1,249	$	1,262
Due from one to five years	23,354		23,816
Due from five to ten years	26,625		27,976
Due after ten years	10,800		11,612
Subtotal	62,028		64,666
Mortgage-backed securities and government agency sponsored collateralized mortgage obligations	57,180		57,575
Total	$	119,208	$	122,241

Securities pledged at March 31, 2016 and December 31, 2015 had a carrying amount of approximately $42.3 million and $43.1 million, respectively, and were pledged to secure Federal Home Loan Bank (“FHLB”) advances and cash flow hedges.

At March 31, 2016 and December 31, 2015, the Company did not hold any securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity.

13

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 5 – LOANS

Loans were as follows for the dates indicated:

	March 31, 2016			December 31, 2015
	(Dollars in thousands)
Commercial	$	158,254		$	154,830
Residential mortgage	39,919			40,478
Mortgage warehouse	122,328			128,902
Residential construction	2,806			3,301
Home equity	14,311			13,990
Consumer and other	3,171			3,380
Subtotal	340,789			344,881
Net deferred loan costs	298			305
Allowance for loan losses	(3,636		)	(3,634		)
Loans, net	$	337,451		$	341,552

At March 31, 2016 and 2015, the Bank’s mortgage warehouse division had repurchase agreements with 34 and 29 mortgage companies, respectively. The following table identifies the activity and related interest and fee income attributable to the mortgage warehouse division for the periods presented:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Mortgage Warehouse:
Originations	$	1,051,049	$	765,001
Sold Loans	1,063,755		738,064
Interest income	1,264		1,246
Warehouse fees	340		235
Wire transfer fees	112		73
Loan servicing fees	84		—

At March 31, 2016, the total participated balance of mortgage warehouse loans was $91.0 million and the total lines of credit availability was $5.0 million. The Company records a servicing fee on the participated balances.

14

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 6 – ALLOWANCE FOR LOAN LOSSES

The following tables present the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31, 2016
	Commercial			Residential Mortgage			Mortgage Warehouse			Residential Construction			Home Equity			Consumer and Other			Total
	(Dollars in thousands)
Allowance for loan losses:
Beginning balance	$	2,440		$	591		$	460		$	4		$	93		$	46		$	3,634
Charge-offs	—			—			—			—			—			(4		)	(4		)
Recoveries	1			—			—			—			—			5			6
Provision	42			(13		)	(14		)	(1		)	(9		)	(5		)	—
Ending balance	$	2,483		$	578		$	446		$	3		$	84		$	42		$	3,636
	Three Months Ended March 31, 2015
	Commercial			Residential Mortgage			Mortgage Warehouse			Residential Construction			Home Equity			Consumer and Other			Total
	(Dollars in thousands)
Allowance for loan losses:
Beginning balance	$	2,116		$	676		$	654		$	4		$	90		$	55		$	3,595
Charge-offs	(20		)	(5		)	—			—			—			(5		)	(30		)
Recoveries	—			—			—			—			—			5			5
Provision	154			(59		)	19			1			(5		)	(5		)	105
Ending balance	$	2,250		$	612		$	673		$	5		$	85		$	50		$	3,675

15

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of the dates indicated:

	March 31, 2016
	Commercial		Residential Mortgage		Mortgage Warehouse		Residential Construction		Home Equity		Consumer and Other		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending balance attributable to loans:
Individually evaluated for impairment	$	898	$	36	$	—	$	—	$	15	$	—	$	949
Collectively evaluated for impairment	1,585		542		446		3		69		42		2,687
Acquired with deteriorated credit quality	—		—		—		—		—		—		—
Total ending allowance	$	2,483	$	578	$	446	$	3	$	84	$	42	$	3,636
Loans:
Individually evaluated for impairment	$	2,850	$	1,309	$	—	$	—	$	94	$	—	$	4,253
Collectively evaluated for impairment	155,404		38,505		122,328		2,806		14,217		3,171		336,431
Acquired with deteriorated credit quality	—		105		—		—		—		—		105
Total ending loan balance	$	158,254	$	39,919	$	122,328	$	2,806	$	14,311	$	3,171	$	340,789

	December 31, 2015
	Commercial		Residential Mortgage		Mortgage Warehouse		Residential Construction		Home Equity		Consumer and Other		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending balance attributable to loans:
Individually evaluated for impairment	$	885	$	43	$	—	$	—	$	17	$	—	$	945
Collectively evaluated for impairment	1,555		548		460		4		76		46		2,689
Acquired with deteriorated credit quality	—		—		—		—		—		—		—
Total ending allowance	$	2,440	$	591	$	460	$	4	$	93	$	46	$	3,634
Loans:
Individually evaluated for impairment	$	2,920	$	1,283	$	—	$	—	$	97	$	—	$	4,300
Collectively evaluated for impairment	151,910		39,089		128,902		3,301		13,893		3,380		340,475
Acquired with deteriorated credit quality	—		106		—		—		—		—		106
Total ending loan balance	$	154,830	$	40,478	$	128,902	$	3,301	$	13,990	$	3,380	$	344,881

16

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents information related to impaired loans by class of loans as of the dates indicated:

	March 31, 2016						December 31, 2015
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	(Dollars in thousands)
With no related allowance recorded:
Commercial:
Real estate	$	1,334	$	1,312	$	—	$	1,436	$	1,366	$	—
Residential mortgage	1,144		1,074		—		1,054		988		—
Home equity	79		79		—		81		80		—
Subtotal	2,557		2,465		—		2,571		2,434		—
With an allowance recorded:
Commercial:
Real estate	1,214		1,214		624		1,214		1,214		624
Construction	25		25		25		41		41		41
Land	430		299		249		431		299		220
Residential mortgage	295		235		36		355		295		43
Home equity	16		15		15		17		17		17
Subtotal	1,980		1,788		949		2,058		1,866		945
Total	$	4,537	$	4,253	$	949	$	4,629	$	4,300	$	945

The following tables present loans individually evaluated for impairment by class of loans for the periods indicated:

	Three Months Ended March 31,
	2016				2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded:
Commercial:
Real estate	$	1,350	$	19	$	2,933	$	45
Five or more family	—		—		3,692		60
Land	—		—		120		—
Residential mortgage	1,081		7		1,098		1
Home equity	80		1		—		—
Subtotal	2,511		27		7,843		106
With an allowance recorded:
Commercial:
Real estate	1,214		—		933		—
Construction	29		—		—		—
Land	299		—		1,440		—
Residential mortgage	236		5		916		2
Home equity	16		—		7		—
Subtotal	1,794		5		3,296		2
Total	$	4,305	$	32	$	11,139	$	108

17

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans as of the dates indicated.

	Nonaccrual				Loans Past Due Over 90 Days Still Accruing
	March 31, 2016		December 31, 2015		March 31, 2016		December 31, 2015
	(Dollars in thousands)
Commercial:
Real estate	$	1,362	$	1,396	—		$	—
Construction	25		41		—		—
Land	299		299		—		—
Residential mortgage	620		590		94		—
Home equity	21		23		—		—
Total	$	2,327	$	2,349	$	94	$	—

The following tables present the aging of the recorded investment in past due loans by class of loans as of the dates indicated: 

	March 31, 2016
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	—	$	—	$	—	$	—	$	17,377	$	17,377
Real estate	401		37		1,311		1,749		94,714		96,463
Five or more family	18		—		—		18		22,470		22,488
Construction	—		—		25		25		12,174		12,199
Land	—		—		—		—		9,727		9,727
Residential mortgage	—		—		624		624		39,295		39,919
Mortgage warehouse	—		—		—		—		122,328		122,328
Residential construction:
Construction	—		—		—		—		1,939		1,939
Land	—		—		—		—		867		867
Home equity	—		—		7		7		14,304		14,311
Consumer and other	—		—		—		—		3,171		3,171
Total	$	419	$	37	$	1,967	$	2,423	$	338,366	$	340,789

18

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	December 31, 2015
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	—	$	—	$	—	$	—	$	18,117	$	18,117
Real estate	1,282		—		102		1,384		90,916		92,300
Five or more family	20		—		—		20		22,672		22,692
Construction	41		—		—		41		11,041		11,082
Land	—		—		—		—		10,639		10,639
Residential mortgage	176		—		495		671		39,807		40,478
Mortgage warehouse	—		—		—		—		128,902		128,902
Residential construction:
Construction	—		—		—		—		2,423		2,423
Land	—		—		—		—		878		878
Home equity	—		—		8		8		13,982		13,990
Consumer and other	—		—		—		—		3,380		3,380
Total	$	1,519	$	—	$	605	$	2,124	$	342,757	$	344,881

Troubled Debt Restructurings

A loan modification is considered a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the Company grants a concession it would not otherwise consider but for the borrower’s financial difficulties. The following table presents the Company’s TDRs as of the dates indicated:

	March 31, 2016		December 31, 2015
	(Dollars in thousands)
TDRs:
Performing in accordance with modified repayment terms	$	1,699	$	1,720
Nonperforming	—		—
	$	1,699	$	1,720
Specific reserve	$	—	$	—

TDRs previously disclosed resulted in no charge-offs during the three months ended March 31, 2016 and 2015. The Company had not committed to lend additional amounts to customers with outstanding TDR loans at March 31, 2016 and December 31, 2015.

19

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables present loans by class modified as TDRs that occurred during the periods indicated:

	Three Months Ended March 31,
	2016					2015
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Commercial:
Real Estate	—	$	—	$	—	1	$	207	$	207
Total	—	$	—	$	—	1	$	207	$	207

During the three months ended March 31, 2015, the concession granted by the Company consisted of a reduction in monthly payments.

There were no TDRs that defaulted within twelve months following the modification during the three months ended March 31, 2016 and 2015.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed by the Company’s Officer Loan Committee.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. The analysis includes loans with risk ratings of Special Mention, Substandard, and Doubtful. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, 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.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. The Bank monitors credit quality on loans not rated through the loan’s individual payment performance.

20

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables present the risk category of loans by class based on the most recent analysis performed as of the dates indicated:

	March 31, 2016
	Pass		Special Mention		Substandard		Doubtful
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	16,963	$	414	$	—	$	—
Real estate	92,274		1,570		2,619		—
Five or more family	22,488		—		—		—
Construction	12,174		—		25		—
Land	9,327		101		299		—
Residential mortgage	38,904		21		994		—
Mortgage warehouse	122,328		—		—		—
Residential construction:
Construction	1,939		—		—		—
Land	867		—		—		—
Home equity	14,217		—		94		—
Consumer and other	3,171		—		—		—
Total	$	334,652	$	2,106	$	4,031	$	—

	December 31, 2015
	Pass		Special Mention		Substandard		Doubtful
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	17,807	$	310	$	—	$	—
Real estate	86,548		3,075		2,677		—
Five or more family	22,692		—		—		—
Construction	11,041		—		41		—
Land	10,258		82		299		—
Residential mortgage	39,490		21		967		—
Mortgage warehouse	128,902		—		—		—
Residential construction:
Construction	2,423		—		—		—
Land	878		—		—		—
Home equity	13,893		—		97		—
Consumer and other	3,380		—		—		—
Total	$	337,312	$	3,488	$	4,081	$	—

21

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Purchased Loans

The Company purchased loans during 2007, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was then probable that all contractually required payments would not be collected. The outstanding balance and carrying amount of those loans was as follows:

	March 31, 2016		December 31, 2015
	(Dollars in thousands)
Residential mortgage	105		106
Carrying amount, net of allowance of $0	$	105	$	106

Accretable yield, or income expected to be collected, was as follows:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Beginning balance	$	—	$	18
Reclassification from non-accretable yield	—		—
Accretion of income	—		(11		)
Ending balance	$	—	$	7

For the purchased loans disclosed above, the Company did not increase the allowance for loan losses during the three months ended March 31, 2016 or 2015. No allowance for loan losses was reversed during the three months ended March 31, 2016 or 2015.

NOTE 7 – FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

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 company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial asset:

Investment Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2).

Loans Held for Sale and Loan Commitment Derivatives: The fair value of loans held for sale and residential mortgage loan commitments are determined by obtaining quoted prices for similar loans and commitments with similar interest rates and maturities from major secondary markets (Level 2).

Derivatives-Interest Rate Swaps: The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2).

22

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Impaired Loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value, less estimated costs to sell. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals performed by qualified independent third-party appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including cost, comparable sales, and the income approach. The cost approach is based on the cost to replace the existing property. The comparable sales approach evaluates the sales prices of comparable properties within the same market area. The income approach considers net operating income generated by the property and the rate of return required by an investor. Adjustments are routinely made in the appraisal process by the independent third-party appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Other Real Estate Owned: Assets acquired through or instead of loan foreclosures are initially recorded at fair value less cost to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value, less estimated costs to sell. Fair value is commonly based on recent real estate appraisals performed by qualified independent third-party appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including cost, comparable sales, and the income approach. The cost approach is based on the cost to replace the existing property. The comparable sales approach evaluates the sales prices of comparable properties within the same market area. The income approach considers net operating income generated by the property and the rate of return required by an investor. Adjustments are routinely made in the appraisal process by the independent third-party appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

The President and Chief Financial Officer (“President/CFO”), Senior Vice President – Chief Accounting Officer (“SVP – CAO”), and Executive Vice President – Credit (“EVP – Credit”) are responsible for determining the valuation processes and procedures for the fair value measurement of impaired loans and other real estate owned properties. The President/CFO, SVP – CAO, and EVP – Credit review impaired loans and other real estate owned properties on a quarterly basis to determine the accuracy of third-party appraisals, auction values, values derived from trade publications, any additional data received from the borrower, and the appropriateness of unobservable inputs, generally discounts due to collection issues and current market conditions which are utilized in determining the fair value. The EVP – Credit determines discounts based on the valuation source and asset type for impaired loans. These discounts are reviewed periodically, annually at a minimum, for appropriateness. Current trends in market values and gains and losses on sales of similar assets are also considered when determining discounts of asset categories.

The tables below present the valuation methodology and unobservable inputs for impaired loans and other real estate owned at March 31, 2016 and December 31, 2015.

	March 31, 2016
	Valuation Methodology	Unobservable Inputs	Range of Inputs	Average of Inputs
Impaired loans:
Commercial land	Appraisals	Discounts for changes in market conditions	74%	74%
Other real estate owned, net:
Commercial real estate	Appraisals	Discounts for changes in market conditions	54%	54%

23

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	December 31, 2015
	Valuation Methodology	Unobservable Inputs	Range of Inputs	Average of Inputs
Impaired loans:
Commercial:
Real estate	Appraisals	Discounts for changes in market conditions	8%	8%
Land	Appraisals	Discounts for changes in market conditions	10%	10%
Residential mortgage	Appraisals	Discounts for changes in market conditions	0-20%	10%
Other real estate owned, net:
Residential mortgage	Appraisals	Discounts for changes in market conditions	30%	30%

Mortgage Servicing Rights: On a quarterly basis, loan servicing rights are evaluated for impairment based on the fair value of the rights as compared to the carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level, based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (Level 2).

Fair value at March 31, 2016 was determined using a discount rate of 10.0%; prepayment speeds ranging from 8.0% to 20.9%, depending on the stratification of the specific right; and a weighted average default rate of approximately 0.5%. Fair value at December 31, 2015 was determined using a discount rate of 10.0%; prepayment speeds ranging from 6.9% to 22.1%, depending on the stratification of the specific right; and a weighted average default rate of approximately 0.5%.

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized in the following tables:

				March 31, 2016
	Carrying Value			Quoted Prices in Active Markets  for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial Assets:
Investment securities available-for-sale:
U.S. federal agency obligations	$	11,121		$	—	$	11,121		$	—
State and municipal	52,597			—		52,597			—
Mortgage-backed securities – residential	16,839			—		16,839			—
Government agency sponsored collateralized mortgage obligations	40,736			—		40,736			—
Corporate debt securities	948			—		948			—
Total investment securities available-for-sale	$	122,241		$	—	$	122,241		$	—
Loans held for sale	$	686		$	—	$	686		$	—
Derivatives – residential mortgage loan commitments	$	54		$	—	$	54		$	—
Financial Liabilities:
Derivatives – interest rate swaps	$	(1,872	)	$	—	$	(1,872	)	$	—

24

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

				December 31, 2015
	Carrying Value			Quoted Prices in Active Markets  for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial Assets:
Investment securities available-for-sale:
U.S. federal agency obligations	$	9,372		$	—	$	9,372		$	—
State and municipal	52,400			—		52,400			—
Mortgage-backed securities – residential	17,696			—		17,696			—
Government agency sponsored collateralized mortgage obligations	41,836			—		41,836			—
Corporate debt securities	939			—		939			—
Total investment securities available-for-sale	$	122,243		$	—	$	122,243		$	—
Loans held for sale	$	3,581		$	—	$	3,581		$	—
Derivatives – residential mortgage loan commitments	$	39		$	—	$	39		$	—
Financial Liabilities:
Derivatives – interest rate swaps	$	(1,265	)	$	—	$	(1,265	)	$	—

There were no transfers between Level 1, Level 2, and Level 3 during the periods indicated above.

The difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale was:

	March 31, 2016						December 31, 2015
	Aggregate Fair Value		Difference		Contractual Principal		Aggregate Fair Value		Difference		Contractual Principal
	(Dollars in thousands)
Loans held for sale	$	686	$	22	$	664	$	3,581	$	110	$	3,471

The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
	2016			2015
	(Dollars in thousands)
Loans held for sale:
Other gains (losses)	$	(88	)	$	(11	)
Interest income	15			5
Interest expense	—			—
Total changes in fair values included in current period earnings	$	(73	)	$	(6	)

For items for which the fair value option has been elected, interest income is recorded within the consolidated statements of income and comprehensive income (loss) based on the contractual amount of interest income earned on financial assets (none were delinquent or in nonaccrual status).

25

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Assets measured at fair value on a non-recurring basis are summarized below:

			March 31, 2016
	Carrying Value		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Impaired loans:
Commercial land	$	50	$	—	$	—	$	50
Other real estate owned, net:
Commercial real estate	41		—		—		41
Mortgage servicing rights	180		—		180		—

			December 31, 2015
	Carrying Value		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Impaired loans:
Commercial:
Real estate	$	590	$	—	$	—	$	590
Land	79		—		—		79
Residential mortgage	252		—		—		252
Other real estate owned, net:
Residential mortgage	36		—		—		36
Mortgage servicing rights	145		—		145		—

Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a gross carrying amount of $299,000, with a valuation allowance of $249,000 at March 31, 2016, resulting in an additional provision of $29,000 for the three months ended March 31, 2016. At March 31, 2015, impaired loans had a carrying amount of $1.8 million, with a valuation allowance of $767,000, resulting in an additional provision for loan losses of $261,000 for the three months ended March 31, 2015.

At March 31, 2016, other real estate owned had a carrying amount of $41,000, which resulted in write-downs of $30,000 for the three months ended March 31, 2016. During the three months ended March 31, 2015, no write-downs were recorded on the carrying amount of other real estate owned, which is measured at the lower of cost or fair value less costs to sell.

Mortgage servicing rights, which are carried at lower of cost or fair value, were carried at their fair value of $180,000 at March 31, 2016, which was made up of the outstanding balance of $274,000, net of a valuation allowance of $94,000, resulting in a charge of $8,000 for the three months ended March 31, 2016. At March 31, 2015, mortgage servicing rights were carried at their fair value of $196,000, which was made up of the outstanding balance of $301,000, net of a valuation allowance of $105,000, resulting in a charge of $14,000 for the three months ended March 31, 2015.

26

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The carrying amounts and estimated fair values of financial instruments for the periods presented are as follows:

				March 31, 2016
	Carrying Value			Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial assets:
Cash and due from financial institutions	$	11,361		$	11,361	$	—		$	—
Interest-earning time deposits at other financial institutions	14,532			—		14,596			—
Securities available-for-sale	122,241			—		122,241			—
Loans held for sale	686			—		686			—
Loans, net	337,451			—		—			340,354
Federal Home Loan Bank stock	4,029			—		4,029			—
Accrued interest receivable	1,404			—		689			716
Financial liabilities:
Deposits	$	(361,156	)	$	—	$	(361,719	)	$	—
Federal Home Loan Bank advances	(69,132		)	—		(69,786		)	—
Subordinated debentures	(5,155		)	—		—			(5,146		)
Accrued interest payable	(182		)	—		(179		)	(3		)
Derivatives – interest rate swaps	(1,872		)	—		(1,872		)	—

				December 31, 2015
	Carrying Value			Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial assets:
Cash and due from financial institutions	$	18,459		$	18,459	$	—		$	—
Interest-earning time deposits at other financial institutions	13,599			—		13,641			—
Securities available-for-sale	122,243			—		122,243			—
Loans held for sale	3,581			—		3,581			—
Loans, net	341,552			—		—			344,488
Federal Home Loan Bank stock	4,029			—		4,029			—
Accrued interest receivable	1,519			—		760			759
Financial liabilities:
Deposits	$	(390,959	)	$	—	$	(390,914	)	$	—
Federal Home Loan Bank advances	(55,000		)	—		(55,197		)	—
Subordinated debentures	(5,155		)	—		—			(5,139		)
Accrued interest payable	(175		)	—		(172		)	(3		)
Derivatives – interest rate swaps	(1,265		)	—		(1,265		)	—

27

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The methods and assumptions, not previously presented, used to estimate fair value are described as follows:

Cash and due from financial institutions: The carrying amounts of cash and due from financial institutions approximate fair values and are classified as Level 1.

Interest-earning time deposits at other financial institutions: The fair values of the Company’s interest-earning time deposits at other financial institutions are estimated using discounted cash flow analyses based on current rates for similar types of interest-earning time deposits and are classified as Level 2.

Loans held for sale: The fair value of loans held for sale is estimated based upon binding contracts and quotes from third-party investors resulting in Level 2 classification.

Loans: The fair values of loans are based on discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

Federal Home Loan Bank stock: The fair value of Federal Home Loan Bank stock is based on the price at which it may be resold to the Federal Home Loan Bank.

Deposits: The carrying amounts of demand deposits approximate their fair values and are classified as Level 2. Fair values of fixed rate certificates of deposit are estimated using a cash flow calculation reduced by known maturities, estimated principal payments, and estimated early withdrawal amounts. These cash flows are discounted to the current market rate. This method results in a Level 2 calculation.

Federal Home Loan Bank Advances: The fair values of the Company’s Federal Home Loan Bank advances are estimated using discounted cash flow analyses based on current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification.

Subordinated Debentures: The fair value of the Company’s subordinated debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification.

Short-term borrowings: The carrying amounts of short-term borrowings approximate fair values and are classified as Level 2.

Accrued Interest Receivable/Payable: The carrying amounts of accrued interest approximate fair value resulting in a Level 1, Level 2, or Level 3 classification based on the underlying asset or liability.

NOTE 8 – DERIVATIVES

The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent an amount exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreement.

The counterparties to the Company’s derivatives are exposed to credit risk whenever the derivative is in a liability position. As a result, the Company has collateralized these liabilities with securities held in safekeeping by The Bank of New York and PNC Bank. At March 31, 2016 and December 31, 2015, the Company had securities with a fair value of $4.0 million and $3.7 million, respectively, posted as collateral for these derivatives.

Interest Rate Swaps Designated as Cash Flow Hedges: Interest rate swaps with notional amounts of $40.0 million as of March 31, 2016 and December 31, 2015, respectively, were designated as cash flow hedges of FHLB advances.

28

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

All interest rate swaps were determined to be fully effective during the periods presented. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence, or the Company discontinues hedge accounting. The Company expects the hedges to remain fully effective during the remaining terms of the swaps. The Company does not expect any amounts to be reclassified from other comprehensive income (loss) over the next 12 months.

Information related to the interest-rate swaps designated as cash flow hedges as of March 31, 2016 and December 31, 2015 were as follows:

	March 31, 2016			December 31, 2015
	(Dollars in thousands)
FHLB advance:
Notional amount	$	10,000		$	10,000
Unrealized losses	(86		)	(154		)
Fixed interest rate payable	3.69		%	3.69		%
Variable interest rate receivable (Three month LIBOR plus 0.25%)	0.87			0.57
Maturity date	July 19, 2016
FHLB advance:
Notional amount	$	10,000		$	10,000
Unrealized losses	(466		)	(276		)
Fixed interest rate payable	2.09		%	2.09		%
Variable interest rate receivable (One month LIBOR)	0.44			0.35
Maturity date	March 15, 2020
FHLB advance:
Notional amount	$	10,000		$	10,000
Unrealized losses	(541		)	(339		)
Fixed interest rate payable	2.23		%	2.23		%
Variable interest rate receivable (One month LIBOR)	0.44			0.35
Maturity date	June 15, 2020
FHLB advance:
Notional amount	$	10,000		$	10,000
Unrealized losses	(779		)	(496		)
Fixed interest rate payable	2.62		%	2.62		%
Variable interest rate payable (One month LIBOR)	0.44			—
Maturity date	March 15, 2021

Interest expense recorded on these swap transactions is reported as a component of interest expense on FHLB advances. Interest expense recorded on these swap transactions totaled $171,000 and $127,000 during the three months ended March 31, 2016 and 2015, respectively.

29

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents the net gains (losses) recorded in accumulated other comprehensive income (loss) and the Consolidated Statements of Income relating to the Company’s cash flow derivative instruments for the periods indicated:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Interest rate contracts:
Net amount of gain (loss):
Recognized in OCI (Effective Portion)	$	400	$	296
Reclassified from OCI to interest income	—		—
Recognized in other non-interest income (Ineffective Portion)	—		—

The following table reflects the cash flow hedges included in the Consolidated Balance Sheets as of the dates indicated:

	March 31, 2016						December 31, 2015
	Notional Amount			Fair Value			Notional Amount			Fair Value
	(Dollars in thousands)
Included in other liabilities:
Interest rate swaps related to FHLB advances	$	(40,000	)	$	(1,872	)	$	(40,000	)	$	(1,265	)

NOTE 9 – STOCK-BASED COMPENSATION

During the month of September 2011, the Company implemented the 2011 Equity Incentive Plan (the “2011 Plan”) which was approved by shareholders on May 10, 2011. The 2011 Plan provided for the issuance of stock options or restricted share awards to directors and employees. Total shares authorized for issuance under the 2011 Plan were 417,543.

On May 13, 2014, the Company’s shareholders approved the 2014 Equity Incentive Plan (the “2014 Plan”) which provides for the issuance of stock options or restricted share awards to directors and employees and effectively terminated the 2011 Plan. The total shares authorized for issuance under the 2014 Plan are 473,845 shares of the Company’s common stock plus, at the date the 2014 Plan was approved, there were 14,471 shares of stock that were rolled over from the terminated 2011 Plan and added to the shares available for awards under the 2014 Plan. In addition, any stock awards that had been granted under the 2011 Plan and subsequently forfeited were also included for issuance under the 2014 Plan.

On October, 14, 2014, the Company implemented the 2014 Plan and granted 332,250 shares of stock as stock options and 126,800 shares of stock as restricted share awards to directors and employees. Compensation costs related to these grants will be amortized over a five year period on a straight-line basis. The options and restricted share awards vest 20% annually.

Compensation expense related to the Plans totaled $170,000 and $173,000 for the three months ended March 31, 2016 and 2015, respectively.

Stock-Based Compensation

Compensation expense is recognized for stock options and restricted stock awards issued to employees or directors based on their grant date fair value. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Company’s common stock at the grant date is used for restricted stock awards.

Compensation expense is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation expense is recognized on a straight-line basis over the requisite service period for the entire award.

30

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Stock Options

The 2011 Plan permitted the stock option grants to employees or directors for up to 298,245 shares of common stock. The 2014 Plan permits stock option grants to directors and employees for up to 352,544 shares of common stock. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock on the grant date. Option awards have vesting periods of five years and ten-year contractual terms. Options granted generally vest 20% annually.

The fair value of each option award is estimated on the grant date using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of companies within the Company’s peer group. The expected term of options granted represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

Below is the summary of the activity in the stock option plan for the period presented:

	Three Months Ended March 31, 2016
	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
	(Dollars in thousands, except per share data)
Outstanding at January 1, 2016	581,826		$	9.40	7.5 years	$	3,377
Granted	—		—
Exercised	(1,892	)	8.31
Forfeited or expired	—		—
Outstanding at March 31, 2016	579,934		$	9.40	7.3 years	$	3,689
Exercisable at end of period	256,962		$	7.79	6.3 years	$	2,048

During the three months ended March 31, 2016, 1,892 options were exercised which had an intrinsic value of $13,000. The Company received $16,000 in cash and realized $6,000 in tax benefits related to the exercise of these options. At March 31, 2016, there was $587,000 of total unrecognized compensation cost related to nonvested stock options granted, which is expected to be expensed over a weighted-average period of 3.3 years. The 2014 Plan had 22,132 shares available for future grant at March 31, 2016.

Restricted Share Awards

The 2011 Plan provided for the issuance of up to 119,298 restricted shares to directors and employees. The 2014 Plan provides for the issuance of up to 135,772 of restricted shares to directors and employees. Compensation expense is recognized over the vesting period of the awards based on the grant date fair value of the Company’s common stock at issue date as determined by the listing price on the respective date. Shares vest 20% annually over five years. The 2014 Plan had 9,870 shares available for future grant at March 31, 2016.

A summary of changes in the Company’s nonvested restricted shares the was as follows for the period presented:

	Three Months Ended March 31, 2016
	Shares	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2016	125,152	$	10.58
Granted	—	—
Vested	—	—
Forfeited	—	—
Nonvested at March 31, 2016	125,152	$	10.58

31

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

At March 31, 2016, there was $1.1 million of total unrecognized compensation expense related to nonvested shares granted, which is expected to be recognized over a weighted-average period of 3.3 years. At March 31, 2016, the nonvested shares had an intrinsic value of $649,000.

NOTE 10 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

A summary of the changes in accumulated other comprehensive income (loss) by component for the periods indicated is as follows:

	Three Months Ended March 31,
	2016							2015
	Gains (Losses) on Cash Flow Hedges			Unrealized  Gains (Losses) on Available- for-Sale Securities		Total		Gains (Losses) on Cash Flow Hedges			Unrealized  Gains (Losses) on Available- for-Sale Securities			Total
	(Dollars in thousands)
Beginning balance	$	(836	)	$	1,146	$	310	$	(763	)	$	1,285		$	522
Other comprehensive income (loss) before reclassification	(400		)	857		457		(296		)	668			372
Amounts reclassified from accumulated other comprehensive income (loss)	—			—		—		—			(33		)	(33		)
Net current period other comprehensive income (loss)	(400		)	857		457		(296		)	635			339
Ending balance	$	(1,236	)	$	2,003	$	767	$	(1,059	)	$	1,920		$	861

A summary of the reclassifications out of accumulated other comprehensive income (loss) for the periods indicated is as follows:

	Three Months Ended March 31,
	2016		2015
	Amount Reclassified from Accumulated Other Comprehensive  Income (Loss)		Amount Reclassified from Accumulated Other Comprehensive  Income (Loss)
	(Dollars in thousands)
Unrealized gains and losses on available-for-sale securities:
Net gains on securities	$	—	$	50
Income tax expense	—		(17		)
Net of tax	$	—	$	33

NOTE 11 – OFFSETTING FINANCIAL ASSETS AND LIABILITIES

The following tables summarize gross and net information about financial instruments and derivative instruments that are offset in the Company’s statement of Consolidated Balance Sheets or that are subject to an enforceable master netting arrangement at March 31, 2016 and December 31, 2015.

	March 31, 2016
	Gross Amounts of Recognized Liabilities		Gross  Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Financial Instruments			Cash  Collateral Pledged		Net Amount
	(Dollars in thousands)
Derivatives	$	1,872	$	—	$	1,872	$	(3,977	)	$	—	$	(2,105	)

32

LAPORTE BANCORP, INC.

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	December 31, 2015
	Gross Amounts of Recognized Liabilities		Gross  Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Financial Instruments			Cash  Collateral Pledged		Net Amount
	(Dollars in thousands)
Derivatives	$	1,265	$	—	$	1,265	$	(3,696	)	$	—	$	(2,431	)

If an event of default occurs causing an early termination of an interest rate swap derivative, an early termination amount payable to one party by the other party may be reduced by set-off against any other amount payable by the one party to the other party. If a default in performance of any obligation of a repurchase agreement occurs, each party will set-off property held in respect of transactions against obligations owing in respect of any other transactions.

NOTE 12 – PENDING MERGER

On March 10, 2016, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Horizon Bancorp (“Horizon”), an Indiana corporation. Pursuant to the Merger Agreement, the Company will merge with and into Horizon, with Horizon as the surviving corporation (the “Merger”). Immediately following the Merger, The La Porte Savings Bank, an Indiana chartered savings bank and wholly-owned subsidiary of the Company (“LPS Bank”), will merge with and into Horizon Bank, National Association, the wholly-owned national bank subsidiary of Horizon (“Horizon Bank”), with Horizon Bank as the surviving bank.

Subject to the terms and conditions of the Merger Agreement, upon the completion of the Merger, each share of outstanding Company common stock, $0.01 par value per share, will be converted into 0.629 shares (the “Exchange Ratio”) of Horizon common stock, no par value, or $17.50 per share in cash. The Merger Agreement provides that, in the aggregate, 65% of the outstanding shares of the Company will be converted into the right to receive shares of Horizon common stock and the remaining 35% of the outstanding shares of the Company will be converted into the right to receive cash. The Exchange Ratio is subject to adjustments for stock splits, stock dividends, recapitalization, or similar transactions, or as otherwise described in the Merger Agreement. No fractional shares of Horizon common stock will be issued arising from the Exchange Ratio, instead, Horizon will pay each holder of Company stock an amount in cash determined by multiplying the fractional shares by an average of the daily closing sales price of a share of Horizon’s common stock during the 15 consecutive trading days immediately preceding the second business day prior to the closing date of the Merger. Immediately prior to the Merger, each outstanding stock option to purchase Company common stock will be converted into the right to receive cash equal to $17.50 minus the per share exercise price for each stock option, minus any applicable taxes required to be withheld by law. The Merger remains subject to regulatory approval, Company shareholder approval and other customary closing conditions. Based on Horizon’s March 9, 2016 closing price of $24.21 per share as reported on the NASDAQ Global Select Market, the transaction value is estimated at $94.1 million.

NOTE 13 – SUBSEQUENT EVENT

On April 26, 2016, a shareholder class and derivative action lawsuit was filed against the Company, each of LaPorte Bancorp’s directors, and Horizon in connection with the Company entering into the Merger Agreement with Horizon. The lawsuit, which was filed in the Superior Court of LaPorte County, Indiana, alleges that the members of LaPorte Bancorp’s Board of Directors breached their fiduciary duties to the Company’s shareholders by approving the proposed Merger for inadequate consideration; entering into the Merger Agreement containing unreasonable deal protection devices; and approving the transaction in order to receive benefits not equally shared by all other LaPorte Bancorp shareholders. The lawsuit also alleges claims against Horizon for aiding and abetting these alleged breaches of fiduciary duties. The plaintiff seeks, among other things, class certification, declaratory relief, to enjoin the consummation of the proposed transaction, rescission or recissory damages if the Merger is consummated, costs and reasonable attorneys’ and experts’ fees. The Company believes the claims asserted in this action to be without merit and intends to vigorously defend against this lawsuit. However, at this time, it is not possible to predict the outcome of the proceeding or its impact on LaPorte Bancorp, Horizon, or the proposed Merger.

33

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This document (including information incorporated by reference) contains future oral and written statements of LaPorte Bancorp, Inc. (the “Company”) and its management and may contain, forward-looking statements, as such term is defined in the Private Securities Litigation Reform Act of 1995, with respect to the financial condition, results of operations, plans, objectives, future performance, and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations, and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. The factors which could have a material adverse effect on the operations and future prospects of the Company and certain subsidiaries are detailed in “Item 1A – Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015. In addition to these risk factors, there are other factors that may impact any public company, including ours, which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries. These additional factors include, but are not limited to, the following:

• changes in prevailing real estate values and loan demand both nationally and within our current and future market area;

• increased competitive pressures among financial services companies;

• changes in consumer spending, borrowing, and savings habits;

• the amount of assessments and premiums we are required to pay for FDIC deposit insurance;

• legislative or regulatory changes that affect our business including the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”) and its impact on our compliance costs;

• the success of our mortgage warehouse lending program including the impact of the Dodd-Frank Act on the mortgage companies;

• our ability to manage the impact of changes in interest rates, spreads on interest earning assets and interest-bearing liabilities, and interest rate sensitivity;

• rising interest rates and their impact on mortgage loan volumes;

• our ability to successfully manage our commercial lending;

• the financial health of certain entities, including government sponsored enterprises, the securities of which are owned or acquired by the Company;

• adverse changes in the securities market;

• the new capital rules effective on January 1, 2015 and the implementation of the capital buffer beginning with the first quarter of 2016;

• the costs, effects, and outcomes of existing or future litigation;

• the economic impact of past and any future terrorist attacks, acts of war, or threats thereof and the response of the United States to any such threats and attacks;

• delays in closing the Merger with and into Horizon Bancorp;

• the potential impact of the announcement of the proposed Merger with and into Horizon Bancorp on relationships with third parties, including customers, employees, and competitors;

• the actual results of our proposed Merger with and into Horizon Bancorp could vary materially as a result of a number of factors, including the possibility that various closing conditions for the transaction may not be satisfied or waived, and the merger agreement could be terminated under certain circumstances; and

• the ability of the Company to manage the risks associated with the foregoing factors as well as anticipated risk factors.

These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

34

Critical Accounting Policies

We consider accounting policies that require management to exercise significant judgment or discretion or make significant assumptions that have, or could have, a material impact on the carrying value of certain assets or on income, to be critical accounting policies. These policies are detailed in our Annual Report on Form 10-K for the year ended December 31, 2015 and have not materially changed during the three months ended March 31, 2016.

Recent Events

On March 10, 2016, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Horizon Bancorp (“Horizon”), an Indiana corporation. Pursuant to the Merger Agreement, the Company will merge with and into Horizon, with Horizon as the surviving corporation (the “Merger”). Immediately following the Merger, The La Porte Savings Bank, an Indiana chartered savings bank and wholly-owned subsidiary of the Company (“LPS Bank”), will merge with and into Horizon Bank, National Association, the wholly-owned national bank subsidiary of Horizon (“Horizon Bank”), with Horizon Bank as the surviving bank.

Subject to the terms and conditions of the Merger Agreement, upon the completion of the Merger, each share of outstanding Company common stock, $0.01 par value per share, will be converted into 0.629 shares (the “Exchange Ratio”) of Horizon common stock, no par value, or $17.50 per share in cash. The Merger Agreement provides that, in the aggregate, 65% of the outstanding shares of the Company will be converted into the right to receive shares of Horizon common stock and the remaining 35% of the outstanding shares of the Company will be converted into the right to receive cash. The Exchange Ratio is subject to adjustments for stock splits, stock dividends, recapitalization, or similar transactions, or as otherwise described in the Merger Agreement. No fractional shares of Horizon common stock will be issued arising from the Exchange Ratio, instead, Horizon will pay each holder of Company stock an amount in cash determined by multiplying the fractional shares by an average of the daily closing sales price of a share of Horizon’s common stock during the 15 consecutive trading days immediately preceding the second business day prior to the closing date of the Merger. Immediately prior to the Merger, each outstanding stock option to purchase Company common stock will be converted into the right to receive cash equal to $17.50 minus the per share exercise price for each stock option, minus any applicable taxes required to be withheld by law. The Merger remains subject to regulatory approval, Company shareholder approval and other customary closing conditions. Based on Horizon’s March 9, 2016 closing price of $24.21 per share as reported on the NASDAQ Global Select Market, the transaction value is estimated at $94.1 million.

Comparison of Financial Condition at March 31, 2016 and December 31, 2015

General: Total assets at March 31, 2016decreased $14.3 million, or 2.6%, to $528.9 million compared to $543.2 million at December 31, 2015 primarily due to a $7.1 million, or 38.5%, decrease in cash and due from financial institutions and fed funds sold, a $4.1 million, or 1.2%, decrease in loans, and a $2.9 million, or 80.8%, decrease in loans held for sale.

Investment Securities: Total securities available-for-sale were stable at $122.2 million at both March 31, 2016 and December 31, 2015. During the three months ended March 31, 2016, proceeds from paydowns and maturities totaling $2.8 million were reinvested in additional securities available-for-sale and interest-earning time deposits at other financial institutions.

At March 31, 2016, management reviewed the securities portfolio for possible other-than-temporary impairment and determined there were no impairment charges to be recorded. The net unrealized gains on the available-for-sale securities portfolio totaled $3.0 million at March 31, 2016, an increase of $1.3 million from net unrealized gains totaling $1.7 million at December 31, 2015.

Loans Held for Sale: Loans held for sale decreased $2.9 million, or 80.8%, to $686,000 at March 31, 2016 compared to $3.6 million at December 31, 2015 primarily due to the timing of when residential mortgage loans were originated and subsequently sold to the secondary market.

Loans: Loans decreased by $4.1 million, or 1.2%, to $341.1 million at March 31, 2016 compared to $345.2 million at December 31, 2015. The decrease was primarily due to a $6.6 million, or 5.1%, decrease in mortgage warehouse loans to $122.3 million at March 31, 2016 from $128.9 million at December 31, 2015. The decease in mortgage warehouse loans was primarily due to a three day faster turn time during the first quarter of 2016 compared to the last few months of 2015 as mortgage companies were able to comply more efficiently with new regulations on mortgage loans. We continue to utilize the warehouse participation program to provide additional availability to our customers when their demand increases, primarily at month end, or when there are backlogs in the secondary markets. The participation program allows us to utilize our liquidity to fund commercial loan growth while retaining processing, servicing, and wire transfer fees related to the mortgage warehouse loans.

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Partially offsetting the decrease in mortgage warehouse loans was a $3.4 million, or 2.2%, increase in commercial loans to $158.3 million at March 31, 2016 from $154.8 million at December 31, 2015. The increase was primarily due to new originations as well as fundings of commercial real estate and commercial construction loans during 2015. The Company originated $5.4 million in commercial real estate loans during the first quarter of 2016 with an additional $1.0 million moving into permanent financing from commercial construction loans. During the first quarter of 2016, the Company funded $2.0 million on previously originated or purchased commercial construction loans.

Allowance for Loan Losses: The allowance for loan losses balance was stable at $3.6 million at both March 31, 2016 and December 31, 2015. The Company’s analysis for the allowance for loan losses for the first quarter of 2016 reflected continued improvement in several asset quality metrics and trends, including classified assets, troubled debt restructurings, delinquencies, and current economic conditions. As such, no provision for the allowance for loan losses was recorded during the first quarter of 2016. Net recoveries for the three months ended March 31, 2016 totaled $2,000, compared to $25,000 in net charge-offs for the prior year period.

The allowance for loan losses to nonperforming loans ratio decreased to 150.2% at March 31, 2016 compared to 154.7% at December 31, 2015 primarily due to a $72,000 increase in nonperforming loans. The allowance for loan losses to total loans ratio increased to 1.07% at March 31, 2016 from 1.05% at December 31, 2015 primarily due to the decrease in total loans at March 31, 2016 from December 31, 2015.

Nonperforming Assets: The table below sets forth the amounts and categories of our nonperforming assets at the dates indicated. 

	March 31, 2016			December 31, 2015
	(Dollars in thousands)
Nonaccrual loans:
Commercial:
Real estate	$	1,362		$	1,396
Construction	25			41
Land	299			299
Total commercial	1,686			1,736
Residential mortgage	620			590
Home equity	21			23
Total nonaccrual loans	2,327			2,349
Loans greater than 90 days delinquent and still accruing:
Residential mortgage	94			—
Total loans greater than 90 days delinquent and still accruing	94			—
Total nonperforming loans	2,421			2,349
Foreclosed assets:
Commercial:
Real estate	42			72
Land	1,789			1,789
Total commercial	1,831			1,861
Residential mortgage	339			339
Total foreclosed assets	2,170			2,200
Total nonperforming assets	$	4,591		$	4,549
Ratios:
Nonperforming loans to total loans	0.71		%	0.68		%
Nonperforming assets to total assets	0.87			0.84

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Total nonperforming assets increased $42,000, or 0.9%, to $4.6 million at March 31, 2016 from $4.5 million at December 31, 2015. Our nonperforming assets to total assets ratio increased to 0.87% at March 31, 2016 compared to 0.84% at December 31, 2015 as a result of the increase in nonperforming assets combined with a decrease in total assets at March 31, 2016.

Total nonperforming loans increased $72,000, or 3.1%, to $2.4 million at March 31, 2016 compared to $2.3 million at December 31, 2015. At March 31, 2016, our nonperforming loans to total loans ratio increased to 0.71% from 0.68% at December 31, 2015 as a result of the increase in nonperforming loans and the decrease in total loans outstanding at March 31, 2016.

The primary increase in nonperforming loans from December 31, 2015 to March 31, 2016 was due to a $94,000 residential mortgage loan that is past due 90 days and still accruing as the borrower was waiting to receive payment assistance through a government program. The loan was subsequently brought current as the payments were received by the Bank in April 2016. In addition, the Bank transferred a $40,000 residential mortgage loan to nonaccrual status during the first quarter of 2016. These increases were partially offset by payments received on nonaccrual commercial real estate, construction, and home equity loans.

Other real estate owned decreased $30,000 to $2.2 million at March 31, 2016 from December 31, 2015. During the first quarter of 2016, we recorded a $30,000 write-down on one commercial real estate property. There was no other activity in foreclosed assets during the first quarter of 2016.

Goodwill and Other Intangible Assets: Our goodwill totaled $8.4 million at March 31, 2016 and December 31, 2015. Accounting standards require goodwill to be tested for impairment on an annual basis, or more frequently if circumstances indicate that an asset might be impaired. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value, which is determined through a two-step impairment test. Step 1 includes the determination of the carrying value of the reporting unit, including the existing goodwill and intangible assets, and estimating the fair value of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, we are required to perform a second step to the impairment test. The most recent annual impairment review of our goodwill was completed in February 2016 as of October 31, 2015. Based on this evaluation, management determined that the fair value of the reporting unit, which is defined as LaPorte Bancorp, Inc. as a whole, exceeded the book value of the goodwill, based on the opinion of an independent expert in valuations, such that the sales price per common share would exceed our book value per common share. Accordingly, no goodwill impairment was recognized during the three months ended March 31, 2016.

Our stock price has increased from the previous analysis and the Company continues to be profitable, therefore, management determined that an updated analysis from an independent third party during the three months ended March 31, 2016 was not necessary. At March 31, 2016, our market price per common share was greater than our book value per common share. If, in the future, our market price per common share falls below our book value per common share or other factors arise which may lead to a deterioration in the valuation of the Company, management may conclude that the goodwill is impaired as a result of a future assessment. If our goodwill is determined to be impaired, the related charge to earnings could be material.

Deposits: Total deposits at March 31, 2016decreased $29.8 million, or 7.6%, to $361.2 million from $391.0 million at December 31, 2015. Interest checking deposits decreased $15.2 million, or 14.3%, primarily due to decreases in mortgage warehouse participant accounts, which will fluctuate due to funding needs in mortgage warehouse lending. Certificates of deposit and IRAs decreased $12.0 million, or 12.1%, due to maturities in brokered deposits that were not renewed. Money market accounts decreased $8.2 million, or 14.1%, primarily due to a decrease in one large public fund account.

Borrowed Funds: Total borrowed funds increased $14.1 million, or 23.5%, to $74.3 million at March 31, 2016 compared to $60.2 million at December 31, 2015. The increase in borrowings was primarily related to a $10.0 million advance entered into during March 2016 related to the start of the third forward-starting swap combined with the utilization of our short-term lines of credit to fund the decrease in deposits.

The Bank has unsecured lines of credit at First Tennessee Bank totaling $15.0 million and Zions Bank totaling $9.0 million at March 31, 2016. Neither of these lines were utilized during the first quarter of 2016.

Total Shareholders’ Equity: Total shareholders’ equity increased $1.2 million, or 1.4%, to $86.7 million at March 31, 2016 compared to $85.5 million at December 31, 2015. Retained earnings increased $372,000 due to net income totaling $595,000 for the three months ended March 31, 2016, which was reduced by cash dividends paid totaling $223,000. Accumulated other comprehensive income increased $457,000 as unrealized gains on available-for-sale investment securities increased, which were partially offset by an increase in unrealized losses on interest rate swaps. At March 31, 2016, the Bank continued to be well capitalized under its applicable regulatory capital requirements.

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Comparison of Operating Results for the Three Month Periods Ended March 31, 2016 and March 31, 2015

Net Income: Net income totaled $595,000, or $0.11 per diluted share, for the three months ended March 31, 2016 compared to $952,000, or $0.18 per diluted share, for the three months ended March 31, 2015. The decrease in net income was primarily due to merger related expenses totaling $641,000. Partially offsetting this decrease was an increase in net interest income totaling $363,000 and a decrease of $105,000 in provision for loan losses.

Net Interest Income: Net interest income increased to $4.2 million for the three months ended March 31, 2016 from $3.9 million for the comparable 2015 period. Net interest margin increased 13 basis points to 3.49% for the three months ended March 31, 2016 compared to 3.36% for the prior year period. Interest income increased $454,000 for the three months ended March 31, 2016 as the average balance of interest earning assets increased $24.9 million, or 5.40%, and the average yield earned on these assets increased 18 basis points from the comparable 2015 period. Partially offsetting this increase was a $91,000increase in interest expense as the average balance of interest-bearing liabilities increased $15.5 million, or 4.3%, and the average cost of interest-bearing liabilities increased by seven basis points for the three months ended March 31, 2016 as compared to the prior year period.

Interest and Dividend Income: Interest and dividend income increased $454,000, or 10.1%, to $4.9 million for the three months ended March 31, 2016 compared to $4.5 million for the prior year period. During the first quarter of 2016, interest income from loans increased $523,000 from the prior year period to $4.1 million primarily due to a 10.2%increase in the average balance of loans outstanding to $326.0 million for the three months ended March 31, 2016 from $295.7 million for the prior year period. The average yield earned on loans also increased to 5.06% for the three months ended March 31, 2016 from 4.87% for the prior year period.

Interest income on commercial real estate loans increased $176,000, or 18.2%, during the first quarter of 2016 due to a $19.4 million, or 25.7%, increase in the average balance of these loans and was partially offset by a 31 basis point decrease in the average yield earned. The increase in the average balance was due to the higher level of originations during 2015. The average yield decreased due to competition within the lending markets that we serve.

Interest income on mortgage warehouse loans increased $123,000, or 8.3%, during the first quarter of 2016 primarily due to an increase in fees earned on loans funded as overall warehouse activity has increased as a result of the 2015 addition of the mortgage warehouse participant program. The average yield earned on mortgage warehouse loans increased 87 basis points to 5.81% for the first quarter of 2016 from 4.94% for the prior year period. These increases were partially offset by a $9.6 million, or 8.0%, decrease in the average balance of these loans during the first quarter of 2016 when compared to the prior year period. Overall, the number of transactions and activity increased from the prior year period due to an increase in the number of warehouse lines as well as the funding capacity added by the mortgage warehouse participants. We continue to receive fee income related to all warehouse transactions in addition to servicing income on the participated balances.

Interest income on commercial construction loans increased $81,000, or 172.3%, during the first quarter of 2016 primarily due to a $7.5 million, or 176.9%, increase in the average balance of these loans from the prior year period primarily as a result of construction draws on existing construction loans.

Interest income on five or more family commercial real estate loans increased $69,000, or 33.8%, during the first quarter of 2016 primarily due to a $6.3 million, or 38.5%, increase in the average balances on these loans when compared to the prior year period. The increase was partially offset by a 17 basis point decrease in the average yield earned on these loans during the first quarter of 2016.

Interest income on securities available for sale decreased $123,000, or 15.0%, to $695,000 during the first quarter of 2016 compared to the same 2015 period primarily due to a decrease of $26.7 million, or 17.9%, in the average balance of these securities to $122.2 million for the first quarter of 2016 from $148.9 million for the prior year period. The decrease in securities was primarily used to fund the increase in loan balances and to shift a portion of these funds to interest earning time deposits. Interest income on fed funds sold and other interest-earning deposits increased $54,000 primarily due to a $15.2 million, or 300%, increase in the average balance of fed funds sold combined with the reinvestment of proceeds from investment securities and paydowns into interest earning time deposits. In addition, the average yield earned on these funds increased 25 basis points due to the 25 basis point increase in the federal funds interest rate in December 2015.

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The following table sets forth the average balance sheet, average annualized yield and cost, and certain other information for the three months ended March 31, 2016 and 2015. All average balances are daily average balances. The annualized yields set forth below include the effect of deferred fees, discounts, and premiums that are amortized or accreted to interest income or expense. 

	Three Months Ended March 31,
	2016						2015
	Average Outstanding Balance		Interest		Annualized Yield/Cost		Average Outstanding Balance		Interest		Annualized Yield/Cost
	(Dollars in thousands)
Assets:
Loans (1)	$	326,041	$	4,124	5.06	%	$	295,747	$	3,601	4.87	%
Taxable securities	73,824		327		1.77		96,291		410		1.70
Tax exempt securities (2)	48,416		368		3.04		52,640		408		3.10
FHLB stock	4,029		43		4.27		4,275		43		4.02
Federal funds sold and other interest-earning deposits	34,159		73		0.85		12,613		19		0.60
Total interest earning assets	486,469		4,935		4.06		461,566		4,481		3.88
Non-interest earning assets	45,539						41,745
Total assets	$	532,008					$	503,311
Liabilities and equity:
Savings deposits	$	66,525	$	10	0.06	%	$	63,792	$	9	0.06	%
Money market accounts	55,415		52		0.38		57,932		55		0.38
Interest-bearing checking	98,676		73		0.30		57,215		32		0.22
Certificates of deposit and IRAs	92,189		205		0.89		98,748		198		0.80
Total interest-bearing deposits	312,805		340		0.43		277,687		294		0.42
FHLB advances	57,573		309		2.15		76,137		268		1.41
Subordinated debentures	5,155		47		3.65		5,155		42		3.26
Short-term borrowings	—		—		—		1,061		1		0.38
Total borrowings	62,728		356		2.27		82,353		311		1.51
Total interest-bearing liabilities	375,533		696		0.74		360,040		605		0.67
Non-interest bearing deposits	63,111						54,850
Other liabilities	6,847						5,724
Total liabilities	445,491						420,614
Shareholders’ equity	86,517						82,697
Total liabilities & shareholders’ equity	$	532,008					$	503,311
Net interest income			$	4,239					$	3,876
Net interest rate spread					3.32	%					3.21	%
Net interest margin					3.49						3.36

(1) The average balance of loans includes loans held for sale and nonperforming loans, interest on which is recognized on a cash basis.

(2) No tax-equivalent yield adjustments have been made.

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Interest Expense: Interest expense increased $91,000, or 15.0%, to $696,000 for the three months ended March 31, 2016 from $605,000 for the prior year period. Interest expense on deposit accounts increased $46,000, or 15.6%, to $340,000 for the first quarter of 2016 when compared to the prior year period primarily due to interest expense on interest-bearing checking deposits. The average balance of interest-bearing deposit accounts increased by $41.5 million, or 72.5%, during the first quarter of 2016 as a result of an increase in public funds and mortgage warehouse participant accounts. The average cost paid on these deposits increased eight basis points due to rates paid on public fund accounts and the impact of the higher rates paid on our reward checking product that was implemented in the fourth quarter of 2015.

Interest expense on borrowings increased $45,000 during the first quarter of 2016 from the prior year period. Interest expense related to Federal Home Loan Bank (“FHLB”) advances increased $41,000 during the first quarter of 2016 primarily due to a 74 basis point increase in the average cost of these borrowings and the impact of the Bank’s three interest rate swaps that began in March and June 2015 and March 2016. The fixed interest rates associated with these swaps are 2.09%, 2.23%, and 2.62% with the Bank receiving one month LIBOR. These swaps mature in five years from issuance in March and June 2020 and March 2021. Partially offsetting the increase in the cost of FHLB advances was a $18.6 milliondecrease in the average balance of these FHLB borrowings when compared to the prior year period.

Interest expense on the Company’s subordinated debt increased $5,000 during the three months ended March 31, 2016 compared to the prior year period due to an increase in the average cost of these borrowings by 39 basis points to 3.65% for the first quarter of 2016 from 3.26% for the prior year period. The subordinated debt has a variable rate of interest tied to the three month LIBOR.

Provision for Loan Losses: We recognize a provision for loan losses, which is charged to earnings, at a level necessary to absorb known and inherent losses that are both probable and reasonably estimable at the date of the financial statements. We evaluate the level of the allowance for loan losses on a quarterly basis by considering historical loan loss experience, the types of loans and the amount of loans in the portfolio, adverse situations that may affect our borrowers’ ability to repay, the estimated fair value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available or as future events occur.

The Company’s analysis of the allowance for loan losses for the first quarter of 2016 reflected continued improvement in asset quality metrics and various positive trends, including classified assets, troubled debt restructurings, delinquencies, and current economic conditions. For the three months ended March 31, 2016 we recorded net recoveries totaling $2,000 compared to net charge-offs totaling $25,000 for the prior year period. Based upon the quarterly analysis of the allowance for loan losses and levels of charge-offs during the quarter, management did not record a provision for loan losses during the first quarter of 2016. During the prior year period, a $105,000 provision for loan losses was recorded.

Noninterest Income: Noninterest income increased $64,000, or 10.6%, to $666,000 for the three months ended March 31, 2016 from $602,000 for the prior year period. Loan servicing fees increased by $85,000 due to $84,000 of servicing fees recorded on mortgage warehouse loan participations combined with $6,000 of lower provisions for mortgage servicing rights during the first quarter of 2016 when compared to the prior year period. Wire transfer fees increased $40,000 during the first quarter of 2016 due to the increase in mortgage warehouse activity when compared to the prior year period. Gains on mortgage banking activities increased $26,000 as mortgage originations from purchase activity and associated sales were higher during the first quarter of 2016 when compared to the prior year period. Partially offsetting these increases was a decrease of $50,000 of net gains on the sales of securities when compared to the prior year period. In addition, net gains on other assets decreased $40,000 during the first quarter of 2016, primarily due to a $30,000 write-down on a commercial other real estate owned property based on a recent purchase offer.

Noninterest Expense: Noninterest expense increased $894,000, or 27.4%, to $4.2 million for the three months ended March 31, 2016 when compared to the prior year period primarily due to an increase of $638,000 in legal and other consulting expenses. During the first quarter of 2016, legal and investment banking costs associated with the pending merger with Horizon Bancorp totaled $641,000. Salaries and employee benefits expense increased $216,000, which included an increase in payroll expense related to annual merit increases, mortgage warehouse bonuses, and new positions since the first quarter of 2015. The expense related to the Company’s employee stock ownership plan also increased $26,000 in the first quarter of 2016 due to the increase in our stock price. Group insurance costs increased $21,000 due to higher health care costs in 2016. In addition, deferred lending costs decreased by $57,000 due to lower commercial and residential mortgage loan originations during the first quarter of 2016 when compared to the prior year period. Collection and other real estate owned expenses increased $67,000 during the first quarter of 2016 due to increased legal and collection costs related to one commercial real estate loan relationship and the land

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parcels held in other real estate owned. Data processing expense increased $25,000 during the first quarter of 2016 due to higher core processing costs combined with upgrades to our disaster recovery and back up systems.

Partially offsetting the above increases, advertising expenses decreased $40,000 during the first quarter of 2016 due to lower costs incurred for advertising campaigns for our loan production office in St. Joe, Michigan, and other promotional items. Occupancy and equipment costs decreased $39,000 primarily due to lower utilities, snow removal, and maintenance items during the first quarter of 2016 as compared to the prior year quarter.

Income Taxes: Income before income taxes decreased $362,000, or 32.7%, to $746,000 for the three months ended March 31, 2016 from $1.1 million for the prior year period, which led to a decrease in income tax expense for the three months ended March 31, 2016 to $151,000 from $156,000 for the prior year period. The Company’s effective tax rate for the three months ended March 31, 2016 was 20.2%, an increase from 14.1% for the comparable 2015 period. The increase in the effective tax rate was primarily due to the nondeductible expenses associated with the Merger that were incurred during the first quarter of 2016.

Liquidity and Capital Resources

We maintain liquid assets at levels we consider adequate to meet both our short- and long-term liquidity needs. We adjust our liquidity levels to fund loan commitments, repay our borrowings, and fund deposit outflows. We also adjust liquidity to meet asset and liability management objectives. Liquidity levels can significantly fluctuate based upon the demand in the mortgage warehouse lending division.

Our primary sources of liquidity are deposits, amortization and prepayment of loans and mortgage-backed securities, maturities of investment securities and other short-term investments, and earnings and funds provided from operations, as well as access to FHLB advances and other borrowings. While scheduled principal repayments on loans and mortgage-backed securities are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by market interest rates, economic conditions, and rates offered by our competition. We set the interest rates on our deposits to maintain a desired level of total deposits.

Our liquid assets, defined as cash and due from financial institutions, interest earning time deposits in other financial institutions, and the market value of unpledged securities available-for-sale, totaled $105.8 million at March 31, 2016 and constituted 20.0% of total assets at that date, compared to $111.2 million, or 20.5%, of total assets at December 31, 2015.

The Company also maintains lines of credit with the FHLB. Total availability under these lines of credit was $96.5 million at March 31, 2016. At March 31, 2016, the Company had borrowed $4.1 million on the overnight line of credit with the FHLB. The Company has additional securities and certain approved real estate loans available to pledge as collateral in order to increase our lines of credit with the FHLB. At March 31, 2016, we had $80.0 million in unpledged securities available-for-sale.

The Company actively utilizes its borrowing capacity with the FHLB to manage liquidity and to provide a funding alternative to time deposits, if the FHLB’s rates and terms are more favorable. The advances from the FHLB can have maturities from overnight to multiple years. At March 31, 2016, $44.1 million of these advances were due within one year and $25.0 million had maturities greater than a year. At March 31, 2016, $14.1 million of the FHLB advances were variable rate, of which $10.0 million is part of our interest rate swap strategy. This $10.0 million variable rate advance was swapped for a fixed rate advance of 3.69% and will mature in July 2016. During 2016, the last of the Company’s forward starting swaps began. The Company has three interest rate swaps that are each tied to a $10.0 million fixed rate advance. The advances are swapped for fixed rates of 2.09%, 2.23%, and 2.62%. These one month advances are renewed every month for a five year period from the date of issuance, maturing in March and June 2020 and March 2021. The remaining $55.0 million in FHLB advances were at fixed rates.

The Company has an accommodation from First Tennessee Bank National Association (“FTN”) to borrow federal funds up to $15.0 million. This federal funds accommodation is not a confirmed line or loan, and FTN may cancel such accommodation at any time, in whole or in part, without cause or notice, in its sole discretion. The Company did not utilize this line during the three months ended March 31, 2016.

The Company also has an agreement with Zions First National Bank (“Zions”) for an unsecured line of credit to borrow federal funds up to $9.0 million. This line of credit was established at the discretion of Zions and may be terminated at any time in its sole discretion. The Company did not utilize this line during the three months ended March 31, 2016.

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Federal regulations require FDIC-insured depository institutions to meet several minimum capital standards: a common equity Tier 1 capital to risk-based assets ratio of 4.5%, a Tier 1 capital to risk-based assets ratio of 6.0%, a total capital to risk-based assets of 8%, and a 4% Tier 1 capital to total assets leverage ratio. The existing capital requirements were effective January 1, 2015 and are the result of a final rule implementing regulatory amendments based on recommendations of the Basel Committee on Banking Supervision and certain requirements of the Dodd-Frank Act.

In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted asset above the amount necessary to meet its minimum risk-based capital requirements. The capital conservation buffer requirement is being phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increasing each year until fully implemented at 2.5% on January 1, 2019.

At March 31, 2016, the Bank is considered “well-capitalized”. The table below presents the Bank’s capital ratios at the dates indicated:

	March 31, 2016		December 31, 2015
Total Capital to risk weighted assets	18.7	%	18.0	%
Tier 1 (Core) Capital to risk weighted assets	17.7		17.1
Tier 1 Common Equity Capital to risk weighted assets	17.7		17.1
Tier 1 (Core) Capital to average assets	13.4		13.3

Off-Balance-Sheet Arrangements: In the normal course of operations, we engage in a variety of financial transactions that, in accordance with generally accepted accounting principles, are not recorded in our financial statements. These transactions involve, to varying degrees, elements of credit, interest rate, and liquidity risk. Such transactions are used primarily to manage customers’ requests for funding and take the form of loan commitments, unused lines of credit, and standby letters of credit. At March 31, 2016, we had commitments to originate loans and unused lines of credit totaling $44.2 million and commercial standby letters of credit totaling $978,000. The Company utilizes hedging strategies through interest rate swaps to manage interest rate risk. See Note 8 in the Condensed Notes to the Consolidated Financial Statements for more information.

Impact of Inflation

The primary impact of inflation on the Bank is its effect on interest rates. The Bank’s primary source of income is net interest income, which is affected by changes in interest rates. The Bank attempts to limit the impact of inflation on its net interest margin through management of interest rate-sensitive assets and liabilities and analyses of interest rate sensitivity. The effect of inflation on premises and equipment as well as on noninterest expenses has not been significant for the periods presented.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Management of Interest Rate Risk

Our asset/liability management strategy attempts to manage the impact of changes in interest rates on net interest income, our primary source of earnings.

Historically, we have relied on funding longer term higher interest-earning assets with shorter term lower interest-bearing deposits to earn a favorable net interest rate spread. As a result, we have been vulnerable to adverse changes in interest rates. Over the past several years, management has implemented an asset/liability strategy to manage, subject to our profitability goals, our interest rate risk. Among the techniques we are currently using to manage interest rate risk are: (i) expanding, subject to market conditions, our commercial real estate loans, commercial business loans and mortgage warehouse loans as they generally reprice more quickly than residential mortgage loans; (ii) selling on the secondary market most of our originations of long-term fixed-rate one- to four-family residential mortgage loans; (iii) subject to market conditions and consumer demand, originating residential adjustable rate mortgages for our portfolio; (iv) using interest rate swaps, caps or floors to hedge our assets and/or liabilities; and (v) reducing the amount of long term, fixed rate mortgage-backed and CMO securities, which are vulnerable to an increasing interest rate environment and will extend in duration. We have also used structured rates with redemption features to improve our yield and may consider interest rate swaps and other hedging instruments although we have not done so recently.

42

While this strategy has helped manage our interest rate exposure, it does pose risks. For instance, the prepayment options embedded in adjustable rate one- to four-family residential loans and the mortgage-backed securities and CMOs, which allow for early repayment at the borrower’s discretion may result in prepayment before the loan reaches the fully indexed rate. Conversely, in a falling interest rate environment, borrowers may refinance their loans and redeemable securities may be called. In addition, non-residential lending generally presents higher credit risks than residential one- to four-family lending.

Our Board of Directors is responsible for the review and oversight of management’s asset/liability strategies. Our Asset/Liability Committee is charged with developing and implementing an asset/liability management plan. This committee meets monthly to review pricing and liquidity needs and assess our interest rate risk. We currently utilize a third party modeling program, prepared on a quarterly basis, to evaluate our sensitivity to changing interest rates. In addition, on a monthly basis, the committee reviews our current liquidity position, investment activity, deposit and loan repricing and terms, interest rate swap effectiveness testing, and Federal Home Loan Bank and other borrowing strategies.

Depending on market conditions, we often place more emphasis on enhancing net interest margin rather than matching the interest rate sensitivity of our assets and liabilities. In particular, we believe that the increased net interest income resulting from a mismatch in the maturity of our asset and liabilities portfolios can, during periods of stable interest rates, provide high enough returns to justify increased exposure to sudden and unexpected increases in interest rates. As a result of this philosophy, our results of operations will remain vulnerable to increases in interest rates.

Quantitative Analysis

The following table sets forth, as of March 31, 2016, the estimated changes in the net interest margin and the economic value of equity that would result from the designated changes in the United States Treasury yield curve over a 12 month non-parallel ramp for The LaPorte Savings Bank. Computations of prospective effects of hypothetical interest rate changes are based on numerous assumptions including relative levels of market interest rates, loan prepayments and deposit decay, and should not be relied upon as indicative of actual results.

Changes in Interest  Rates (basis points) (1)			Estimated Increase (Decrease) in NIM							Estimated Increase (Decrease) in EVE					EVE as Percentage of  Economic Value of Assets
	Estimated NIM (2)		Amount			Percent		Estimated EVE (3)		Amount			Percent		EVE  Ratio(4)		Changes in Basis Points
(Dollars in thousands)
+300	$	18,810	$	1,118		6.32	%	$	79,621	$	(2,230	)	(2.72	)%	16.05	%	0.33	%
+200	18,482		790			4.47		82,365		514			0.63		16.33		0.61
+100	18,128		436			2.46		83,811		1,960			2.39		16.35		0.63
0	17,692		—			—		81,851		—			—		15.72		—
-100	17,058		(634		)	(3.58	)	75,006		(6,845		)	(8.36	)	14.22		(1.50	)

(1) Assumes changes in interest rates over a 12 month non-parallel ramp.

(2) NIM or Net Interest Margin measures The LaPorte Savings Bank’s exposure to net interest income due to changes in a forecast interest rate environment.

(3) EVE or Economic Value of Equity at Risk measures The LaPorte Savings Bank’s exposure to equity due to changes in a forecast interest rate environment.

(4) EVE Ratio represents Economic Value of Equity divided by the economic value of assets which should translate into built in stability for future earnings.

The table above indicates that at March 31, 2016, in the event of a 100 basis point decrease in interest rates over a 12 month non-parallel ramp, we would experience a 3.58%decrease in net interest income. In the event of a 100 basis point increase in interest rates over a 12 month non-parallel ramp, the net interest income would increase2.46%.

The table above indicates that at March 31, 2016, in the event of a 100 basis point decrease in interest rates over a 12 month non-parallel ramp, we would experience a 8.36%decrease in economic value of equity. In the event of a 100 basis point increase in interest rates over a 12 month non-parallel ramp, the economic value would increase2.39% in economic value of equity.

Certain shortcomings are inherent in the methodology used in the above interest rate risk measurement. Modeling changes in the economic portfolio value of equity and net interest margin require making certain assumptions that may or may not reflect the manner in which actual yields and costs respond to changes in market interest rates. Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types may lag behind changes in interest rates. In this regard, the table above assumes that the composition of our interest-sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and assumes that particular changes in interest rates occur at different times and in different amounts in response to a designed change in the yield curve for U.S. Treasuries. Furthermore, although the table provides an indication of our interest rate risk exposure at a particular point in time, such

43

measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on our net interest income. Finally, the above table does not take into account the changes in the credit risk of our assets which can occur in connection with changes in interest rates.

The Company has taken steps to address its exposure to rising interest rates with respect to our economic value of equity at risk. In February 2010, the Company executed an interest rate swap against a $10.0 million adjustable rate advance tied to the three month LIBOR plus 0.25% for six years at an effective fixed rate of 3.69% and began in July 2010. In August 2014, the Company executed three $10.0 million forward starting interest rate swaps against $30.0 million in maturing one month fixed rate FHLB advances tied to the one month LIBOR. The first interest rate swap began in March 2015 for five years with an effective fixed rate of 2.085%. The second interest rate swap began in June 2015 for five years with an effective fixed rate of 2.228%. The third interest rate swap began in March 2016 for five years with an effective fixed rate of 2.618%. Management pursued this hedging strategy to address the concern over the impact to the Company’s tangible equity from the price deterioration in the Company’s available-for-sale securities portfolio in a rising rate environment.

We will continue to look for opportunities to address our exposure to rising interest rates and the related impact on our economic value of equity at risk and may utilize hedging strategies in the future. We are also continuing to sell the majority of the fixed rate one- to-four family residential real estate loans originated and retain only variable-rate one- to-four family residential loans and fixed-rate one-to-four family residential loans with maximum terms of 20 years. We continue to originate the majority of commercial real estate loans at a variable rate with interest rate floors attached.

ITEM 4. CONTROLS AND PROCEDURES

The Company has adopted disclosure controls and procedures designed to facilitate financial reporting. The Company’s disclosure controls currently consist of communications among the Company’s Chief Executive Officer, the Company’s Chief Financial Officer, Chief Accounting Officer, and each department head to identify any transactions, events, trends, risks or contingencies which may be material to its operations. These disclosure controls also contain certain elements of the Company’s internal controls adopted in connection with applicable accounting and regulatory guidelines. In addition, the Company’s Chief Executive Officer, Chief Financial Officer, Chief Accounting Officer, Audit Committee, and independent registered public accounting firm also meet on a quarterly basis to discuss disclosure matters. The Company’s Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of the Company’s disclosure controls and procedures as of the end of the period covered by this report and found them to be effective.

The Company maintains internal control over financial reporting. There have not been any significant changes in such internal control over financial reporting in the last quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

On April 26, 2016, a shareholder class and derivative action lawsuit was filed against the Company, each of LaPorte Bancorp’s directors, and Horizon in connection with the Company entering into the Merger Agreement with Horizon. The lawsuit, which was filed in the Superior Court of LaPorte County, Indiana, alleges that the members of LaPorte Bancorp’s Board of Directors breached their fiduciary duties to the Company’s shareholders by approving the proposed Merger for inadequate consideration; entering into the Merger Agreement containing unreasonable deal protection devices; and approving the transaction in order to receive benefits not equally shared by all other LaPorte Bancorp shareholders. The lawsuit also alleges claims against Horizon for aiding and abetting these alleged breaches of fiduciary duties. The plaintiff seeks, among other things, class certification, declaratory relief, to enjoin the consummation of the proposed transaction, rescission or recissory damages if the Merger is consummated, costs and reasonable attorneys’ and experts’ fees. The Company believes the claims asserted in this action to be without merit and intends to vigorously defend against this lawsuit. However, at this time, it is not possible to predict the outcome of the proceeding or its impact on LaPorte Bancorp, Horizon, or the proposed Merger.

Other than the legal proceedings mentioned above, there are no other material pending legal proceedings to which the Company or its subsidiaries is a party other than ordinary routine litigation incidental to their respective businesses as of March 31, 2016.

44

ITEM 1A. RISK FACTORS

As of March 31, 2016, there were no material changes to the “Risk Factors” disclosed in the Company’s Annual Report for the year ended December 31, 2015 on Form 10-K filed on March 24, 2016. However, the risks described in our 2015 Annual Report on Form 10-K are not the only risks that we face. Additional risks not presently known to us, or that we currently deem immaterial, may also adversely affect our business, financial condition or results of operations.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a) Not applicable

(b) Not applicable

(c) The following table presents information related to purchases made by or on behalf of the Company of shares of the Company’s common stock during the periods indicated:

Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (1)
January 1-31, 2016	—	$	—	—	98,951
February 1-29, 2016	—	—		—	98,951
March 1-31, 2016	—	—		—	98,951
Total	—	—		—	98,951

(1) On September 9, 2014, the Company publicly announced its fourth share repurchase program for 280,832 shares.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable

ITEM 5. OTHER INFORMATION

None

ITEM 6. EXHIBITS

	Description
31.1	Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following materials from LaPorte Bancorp, Inc.’s Form 10-Q Report for the quarterly period ended March 31, 2016, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income (Loss), (iv) the Consolidated Statements of Changes in Shareholders’ Equity, (v) the Consolidated Statements of Cash Flows, and (vi) the Notes to Consolidated Financial Statements.

45

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		LaPorte Bancorp, Inc.
Date:	May 5, 2016	/s/ Lee A. Brady
		Lee A. Brady
		Chief Executive Officer
Date:	May 5, 2016	/s/ Michele M. Thompson
		Michele M. Thompson
		President and Chief Financial Officer

46

EX-31.1

EXHIBIT 31.1

Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) as adopted

pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Lee A. Brady, certify that:

1. I have reviewed this report on Form 10-Q of LaPorte Bancorp, 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-13(f) and 15d-15(f)) 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 subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. 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 subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusion 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

d. 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 the 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.

May 5, 2016	/s/ Lee A. Brady
Date	Lee A. Brady
	Chief Executive Officer
	LaPorte Bancorp, Inc.

EX-31.2

EXHIBIT 31.2

Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) as adopted

pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Michele M. Thompson, certify that:

1. I have reviewed this report on Form 10-Q of LaPorte Bancorp, 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-13(f) and 15d-15(f)) 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 subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. 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 subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusion 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

d. 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 the 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.

May 5, 2016	/s/ Michele M. Thompson
Date	Michele M. Thompson
	President and Chief Financial Officer
	LaPorte Bancorp, Inc.

EX-32.1

EXHIBIT 32.1

Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C.

Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report on Form 10-Q of LaPorte Bancorp, Inc. (the Registrant) for the quarter ended March 31, 2016 as filed with the Securities and Exchange Commission, the undersigned hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. Such Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in such Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

May 5, 2016	/s/ Lee A. Brady
Date	Lee A. Brady
	Chief Executive Officer
	LaPorte Bancorp, Inc.
May 5, 2016	/s/ Michele M. Thompson
Date	Michele M. Thompson
	President and Chief Financial Officer
	LaPorte Bancorp, Inc.

This certification accompanies each report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 29, 2016
Document Document And Entity Information [Abstract]
Entity Registrant Name	LaPorte Bancorp, Inc.
Entity Central Index Key	0001549276
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		5,580,115

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash and due from financial institutions	$ 11,361	$ 18,459
Interest-earning time deposits in other financial institutions	14,532	13,599
Securities available-for-sale	122,241	122,243
Federal Home Loan Bank stock, at cost (restricted)	4,029	4,029
Loans held for sale, at fair value	686	3,581
Loans, net of allowance for loan losses of $3,636 at March 31, 2016 and $3,634 at December 31, 2015	337,451	341,552
Mortgage servicing rights	321	334
Other real estate owned	2,170	2,200
Premises and equipment, net	8,477	8,608
Goodwill	8,431	8,431
Other intangible assets	142	153
Bank owned life insurance	15,140	15,034
Accrued interest receivable and other assets	3,943	4,968
Total assets	528,924	543,191
Deposits:
Non-interest bearing	65,906	62,020
Interest bearing	295,250	328,939
Total deposits	361,156	390,959
Federal Home Loan Bank advances	69,132	55,000
Subordinated debentures	5,155	5,155
Accrued interest payable and other liabilities	6,758	6,529
Total liabilities	442,201	457,643
Shareholders’ equity:
Preferred stock, no par value; 50,000,000 shares authorized; none issued	0	0
Common stock, $0.01 par value; 100,000,000 shares authorized at March 31, 2016 and December 31, 2015; 5,580,115 and 5,578,223 shares issued and outstanding at March 31, 2016 and December 31, 2015	56	56
Additional paid-in capital	40,421	40,120
Retained earnings	48,312	47,940
Accumulated other comprehensive income, net of tax expense of $395 at March 31, 2016 and $162 at December 31, 2015	767	310
Unearned Employee Stock Ownership Plan (ESOP) shares	(2,833)	(2,878)
Total shareholders’ equity	86,723	85,548
Total liabilities and shareholders’ equity	$ 528,924	$ 543,191

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Allowance for loan losses	$ 3,636	$ 3,634
Preferred stock, par value (in usd per share)	$ 0	$ 0
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	5,580,115	5,578,223
Common stock, shares outstanding	5,580,115	5,578,223
Accumulated other comprehensive income, tax	$ (395)	$ (162)

XML

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest and dividend income:
Loans, including fees	$ 4,124	$ 3,601
Taxable securities	327	410
Tax exempt securities	368	408
Federal Home Loan Bank stock	43	43
Other interest income	73	19
Total interest and dividend income	4,935	4,481
Interest expense:
Deposits	340	294
Federal Home Loan Bank advances	309	268
Subordinated debentures	47	42
Short-term borrowings	0	1
Total interest expense	696	605
Net interest income	4,239	3,876
Provision for loan losses	0	105
Net interest income after provision for loan losses	4,239	3,771
Noninterest income:
Service charges on deposit accounts	75	76
ATM and debit card fees	105	103
Wire transfer fees	118	78
Earnings on bank owned life insurance, net	106	105
Net gains on mortgage banking activities	156	130
Loan servicing fees, net	98	13
Net gains on sales of securities available-for-sale	0	50
Gains (losses) on other assets	(30)	10
Other income	38	37
Total noninterest income	666	602
Noninterest expense:
Salaries and employee benefits	2,150	1,934
Legal and other consulting fees	659	21
Occupancy and equipment	429	468
Data processing	178	153
Advertising	42	82
Bank examination fees	114	112
Amortization of intangible assets	11	14
FDIC insurance	69	70
Collection and other real estate owned	98	31
Other expenses	409	380
Total noninterest expense	4,159	3,265
Income before income taxes	746	1,108
Income tax expense	151	156
Net income	$ 595	$ 952
Earnings per share (Note 3):
Basic (in usd per share)	$ 0.11	$ 0.18
Diluted (in usd per share)	$ 0.11	$ 0.18

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Interest Expense	$ 696	$ 605
Net income	595	952
Unrealized gains on securities:
Unrealized holding gains arising during the period	1,299	1,012
Reclassification adjustment for net gains included in net income	0	(50)
Gross unrealized gains	1,299	962
Related income tax expense	(442)	(327)
Net unrealized gains	857	635
Unrealized losses on cash flow hedges:
Gross unrealized losses	(607)	(449)
Related income tax benefit	207	153
Net unrealized losses	(400)	(296)
Total other comprehensive income	457	339
Comprehensive income	$ 1,052	$ 1,291

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited) - USD ($)	Total	Unearned ESOP Shares [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) Net of Tax [Member]	Equity Incentive Plan [Member]
Net Income (Loss) Attributable to Parent, Diluted	$ 952,000
Beginning Balance at Dec. 31, 2014	82,388,000	$ (3,058,000)	$ 57,000	$ 40,609,000	$ 44,258,000	$ 522,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	952,000
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax						(339,000)
Other comprehensive income (loss)	339,000
Cash dividends on common stock	(225,000)				(225,000)
Repurchase of common stock	(676,000)		(1,000)	(675,000)
ESOP shares earned	73,000	45,000		28,000
Allocated Share-based Compensation Expense							$ 173,000
Exercise of stock options, 1,892 shares	29,000			29,000
Stock based compensation expense	173,000
Ending Balance at Mar. 31, 2015	83,053,000	(3,013,000)	56,000	40,164,000	44,985,000	861,000
Net Income (Loss) Attributable to Parent, Diluted	595,000
Beginning Balance at Dec. 31, 2015	85,548,000	(2,878,000)	56,000	40,120,000	47,940,000	310,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	595,000
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax						(457,000)
Other comprehensive income (loss)	457,000
Cash dividends on common stock	(223,000)				(223,000)
ESOP shares earned	84,000	45,000		39,000
Allocated Share-based Compensation Expense							$ 170,000
Exercise of stock options, 1,892 shares	16,000			16,000
Stock based compensation expense	170,000
Ending Balance at Mar. 31, 2016	$ 86,723,000	$ (2,833,000)	$ 56,000	$ 40,421,000	$ 48,312,000	$ 767,000

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Document Period End Date	Mar. 31, 2016
Stock Repurchased During Period, Shares	0	53,874
Cash dividends (in usd per share)	$ 0.04	$ 0.04
ESOP shares earned	5,621	5,621
Exercise of stock options (in shares)	1,892	4,472

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 595	$ 952
Adjustments to reconcile net income to net cash from operating activities:
Depreciation	142	140
Provision for loan losses	0	105
Net gains on securities available-for-sale	0	(50)
Net amortization on securities available-for-sale	120	192
Net gains on sales of loans	(146)	(124)
Originations of loans held for sale	(4,166)	(3,354)
Proceeds from sales of loans held for sale	7,207	3,729
Recognition of mortgage servicing rights	(10)	(6)
Amortization of mortgage servicing rights	15	13
Net change in mortgage servicing rights valuation allowance	8	14
Net (gains) losses on sales of other real estate owned	0	(10)
Write down of other real estate owned and assets held for sale	47	0
Earnings on bank owned life insurance, net	(106)	(105)
Amortization of intangible assets	11	14
ESOP compensation expense	84	73
Stock based compensation expense	170	173
Change in assets and liabilities:
Accrued interest receivable and other assets	773	192
Accrued interest payable and other liabilities	(378)	(58)
Net cash provided by operating activities	4,366	1,890
Cash flows from investing activities:
Net change in interest-earning time deposits at other financial institutions	(933)	980
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds	0	10,262
Proceeds from sales of securities available-for-sale	0	10,262
Proceeds from maturities, calls, and principal repayments of securities available-for-sale	2,781	5,181
Purchases of securities available-for-sale	(1,600)	0
Net change in loans	4,101	(22,346)
Proceeds from sales of other real estate owned	0	35
Premises and equipment expenditures, net	(11)	(124)
Net cash provided by (utilized for) investing activities	4,338	(6,012)
Cash flows from financing activities:
Net change in deposits	(29,803)	11,936
Repayment of FHLB long-term advances	0	(5,000)
Net change in FHLB short-term advances	14,132	81
Net change in short-term borrowings	0	500
Stock options exercised	16	29
Excess Tax Benefit from Share-based Compensation, Financing Activities	76	0
Dividends paid on common stock	(223)	(225)
Repurchase of common stock	0	(676)
Net cash (utilized for) provided by financing activities	(15,802)	6,645
Net (decrease) increase in cash and cash equivalents	(7,098)	2,523
Cash and cash equivalents at beginning of period	18,459
Cash and cash equivalents at end of period	11,361
Cash paid during the period for:
Interest	689	607
Income taxes	53	0
Supplemental noncash disclosures:
Transfers from loans receivable to other real estate owned	$ 0	$ 127

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BASIS OF PRESENTATION AND CONSOLIDATION

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

BASIS OF PRESENTATION AND CONSOLIDATION

BASIS OF PRESENTATION AND CONSOLIDATION

The unaudited consolidated financial statements include the accounts of LaPorte Bancorp, Inc., a Maryland corporation (the “Bancorp”), its wholly owned subsidiaries, LSB Risk Management, Inc., The LaPorte Savings Bank (the “Bank”), the Bank’s wholly-owned subsidiary, LSB Investments, Inc. (“LSB Inc.”), and LSB Inc.’s wholly-owned subsidiary, LSB Real Estate, Inc. (“LSB REIT”), together referred to as the “Company.” The Bancorp was formed in June 2012. LSB Risk Management, LLC was formed on December 27, 2013 as a captive insurance company and is incorporated in Nevada. LSB Inc. was formed on October 1, 2011 to manage a portion of the Bank’s investment portfolio and is incorporated in Nevada. LSB REIT, a real estate investment trust, was formed on January 1, 2013 to invest in assets secured by residential or commercial real estate properties originated by the Bank and is incorporated in Maryland. Intercompany transactions and balances are eliminated in consolidation.

The unaudited consolidated financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial statements and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”). In the opinion of management, the unaudited consolidated financial statements contain all material adjustments (consisting of normal recurring accruals) and disclosures which are necessary to make the financial statements not misleading and for a fair presentation of the financial position and results of operations for the interim periods presented herein.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with United States generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the SEC. Accordingly, the interim consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 10-K of the Company for the fiscal year ended December 31, 2015. The results for the three month periods ended March 31, 2016 may not indicate the results to be expected for any other interim period or for the full year ending December 31, 2016.

Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation.

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RECENT ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Mar. 31, 2016

Accounting Changes and Error Corrections [Abstract]

RECENT ACCOUNTING PRONOUNCEMENTS

RECENT ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued ASU No. 2014-09 “Revenue from Contracts with Customers (Topic 606).” This ASU clarifies that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. This ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this Update recognized at the date of initial application. The Company is still evaluating the impact relating to adopting this standard.

In June 2014, the FASB issued ASU No. 2014-12 “Compensation - Stock Compensation (Topic 718) - Accounting for Share Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.” This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 became effective for interim and annual periods beginning after December 15, 2015 and did not have a significant impact on the Company’s financial condition or results of operations.

In April 2015, the FASB issued ASU No. 2015-05 “Intangibles - Goodwill and Other - Internal Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 became effective for interim and annual periods beginning after December 15, 2015 and did not have a significant impact on the Company’s financial condition or results of operations.

In January 2016, the FASB issued ASU No. 2016-01 “Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU is intended to improve the recognition and measurement of financial instruments by requiring equity investments to be measured at fair value with changes in fair value recognized in net income; requiring public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requiring separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured and amortized at cost on the balance sheet; and requiring a reporting organization to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. ASU 2016-01 is effective for interim and annual reporting periods beginning after December 15, 2017. The amendments should be applied through a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. The Company will be evaluating the impact of adopting this ASU.

In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842).” This ASU requires lessees and lessors to classify leases as either capital leases or operating leases. The ASU also requires lessees to recognized assets and liabilities for all leases with the exception of short term leases. There are new disclosure requirements for these leases which will provide users of financial statements with information to understand the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 will become effective for fiscal years beginning after December 31, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company will be evaluating the impact of adopting this ASU.

In March 2016, the FASB issued ASU No. 2016-05 “Derivatives and Hedging (Topic 815).” This ASU applies to all reporting entities for which there is a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815. The ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria as identified in Topic 815 continue to be met. ASU 2016-05 will become effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company will be evaluating the impact of adopting this ASU.

In March 2016, the FASB issued ASU No. 2016-09 “Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting.” This ASU requires all income tax effects of awards to be recognized in teh income statement when the awards vest or are settled. It also allows an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election for forfeitures as they occur. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. The Company will be evaluating the impact of adopting this ASU.

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EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic earnings per common share is determined by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding for the period. Employee Stock Ownership Plan (“ESOP”) shares are considered outstanding for this calculation unless unearned. Diluted earnings per common share is determined by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding for the period, adjusted for the dilutive effect of common share equivalents.

The factors used in the earnings per common share computation follow:

	Three Months Ended March 31,
	2016			2015
	(Dollars in thousands, except per share data)
Basic:
Net income	$	595		$	952
Weighted average common shares outstanding	5,579,678			5,627,687
Less: Average unallocated ESOP shares	(356,965		)	(379,449		)
Average shares	5,222,713			5,248,238
Basic earnings per common share	$	0.11		$	0.18
Diluted:
Net income	$	595		$	952
Weighted average common shares outstanding for basic earnings per common share	5,222,713			5,248,238
Add: Dilutive effects of assumed exercises of stock options	162,603			109,750
Average shares and dilutive potential common shares	5,385,316			5,357,988
Diluted earnings per common share	$	0.11		$	0.18

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SECURITIES AVAILABLE FOR SALE

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

SECURITIES AVAILABLE FOR SALE

SECURITIES AVAILABLE-FOR-SALE

The amortized cost and fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:

	March 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. federal agency obligations	$	11,052	$	70	$	(1	)	$	11,121
State and municipal	49,976		2,621		—			52,597
Mortgage-backed securities – residential	16,585		263		(9		)	16,839
Government agency sponsored collateralized mortgage obligations	40,595		352		(211		)	40,736
Corporate debt securities	1,000		—		(52		)	948
Total	$	119,208	$	3,306	$	(273	)	$	122,241

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. federal agency obligations	$	9,442	$	1	$	(71	)	$	9,372
State and municipal	50,020		2,397		(17		)	52,400
Mortgage-backed securities – residential	17,671		98		(73		)	17,696
Government agency sponsored collateralized mortgage obligations	42,376		139		(679		)	41,836
Corporate debt securities	1,000		—		(61		)	939
Total	$	120,509	$	2,635	$	(901	)	$	122,243

At March 31, 2016 and December 31, 2015, all of our mortgage-backed securities were issued by U.S. government-sponsored enterprises and all of our collateralized mortgage obligations were issued by either U.S. government-sponsored enterprises or the U.S. Small Business Administration.

Securities with unrealized losses at March 31, 2016 and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

	March 31, 2016
	Continuing Unrealized Loss For Less Than 12 Months					Continuing Unrealized Loss For 12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(Dollars in thousands)
U.S. federal agency obligations	$	1,099	$	(1	)	$	—	$	—		$	1,099	$	(1	)
Mortgage-backed securities – residential	900		(3		)	813		(6		)	1,713		(9		)
Government agency sponsored collateralized mortgage obligations	3,087		(32		)	15,667		(179		)	18,754		(211		)
Corporate debt securities	—		—			948		(52		)	948		(52		)
Total temporarily impaired	$	5,086	$	(36	)	$	17,428	$	(237	)	$	22,514	$	(273	)

	December 31, 2015
	Continuing Unrealized Loss For Less Than 12 Months					Continuing Unrealized Loss For 12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(Dollars in thousands)
U.S. federal agency obligations	$	8,371	$	(71	)	$	—	$	—		$	8,371	$	(71	)
State and municipal	4,512		(14		)	856		(3		)	5,368		(17		)
Mortgage-backed securities – residential	9,259		(48		)	809		(25		)	10,068		(73		)
Government agency sponsored collateralized mortgage obligations	11,200		(136		)	18,148		(543		)	29,348		(679		)
Corporate debt securities	—		—			939		(61		)	939		(61		)
Total temporarily impaired	$	33,342	$	(269	)	$	20,752	$	(632	)	$	54,094	$	(901	)

Management periodically evaluates each investment security for potential other-than-temporary impairment, relying primarily on industry analyst reports and observation of market conditions and interest rate fluctuations. The unrealized losses on the Company’s investments in U.S. federal agency obligations, mortgage-backed securities, agency collateralized mortgage obligations, and corporate debt securities were a result of changes in interest rates and not a result of a decline in credit quality. Management believes it will be able to collect all amounts due according to the contractual terms of the underlying investment securities and that the noted declines in fair value are considered temporary. The unrealized losses on the Company’s investment in state and municipal securities were also caused by changes in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell the securities and is not more likely than not to be required to sell them before their anticipated recovery.

Proceeds from sales of securities available-for-sale were as follows:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Proceeds	$	—	$	10,262
Gross gains	—		84
Gross losses	—		(34		)

The amortized cost and fair value of debt securities at March 31, 2016 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities and collateralized mortgage obligations (“CMO”), are shown separately.

	March 31, 2016
	Amortized Cost		Fair Value
	(Dollars in thousands)
Due in one year or less	$	1,249	$	1,262
Due from one to five years	23,354		23,816
Due from five to ten years	26,625		27,976
Due after ten years	10,800		11,612
Subtotal	62,028		64,666
Mortgage-backed securities and government agency sponsored collateralized mortgage obligations	57,180		57,575
Total	$	119,208	$	122,241

Securities pledged at March 31, 2016 and December 31, 2015 had a carrying amount of approximately $42.3 million and $43.1 million, respectively, and were pledged to secure Federal Home Loan Bank (“FHLB”) advances and cash flow hedges.

At March 31, 2016 and December 31, 2015, the Company did not hold any securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders’ equity.

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LOANS

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

LOANS

LOANS

Loans were as follows for the dates indicated:

	March 31, 2016			December 31, 2015
	(Dollars in thousands)
Commercial	$	158,254		$	154,830
Residential mortgage	39,919			40,478
Mortgage warehouse	122,328			128,902
Residential construction	2,806			3,301
Home equity	14,311			13,990
Consumer and other	3,171			3,380
Subtotal	340,789			344,881
Net deferred loan costs	298			305
Allowance for loan losses	(3,636		)	(3,634		)
Loans, net	$	337,451		$	341,552

At March 31, 2016 and 2015, the Bank’s mortgage warehouse division had repurchase agreements with 34 and 29 mortgage companies, respectively. The following table identifies the activity and related interest and fee income attributable to the mortgage warehouse division for the periods presented:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Mortgage Warehouse:
Originations	$	1,051,049	$	765,001
Sold Loans	1,063,755		738,064
Interest income	1,264		1,246
Warehouse fees	340		235
Wire transfer fees	112		73
Loan servicing fees	84		—

At March 31, 2016, the total participated balance of mortgage warehouse loans was $91.0 million and the total lines of credit availability was $5.0 million. The Company records a servicing fee on the participated balances.

ALLOWANCE FOR LOAN LOSSES

The following tables present the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31, 2016
	Commercial			Residential Mortgage			Mortgage Warehouse			Residential Construction			Home Equity			Consumer and Other			Total
	(Dollars in thousands)
Allowance for loan losses:
Beginning balance	$	2,440		$	591		$	460		$	4		$	93		$	46		$	3,634
Charge-offs	—			—			—			—			—			(4		)	(4		)
Recoveries	1			—			—			—			—			5			6
Provision	42			(13		)	(14		)	(1		)	(9		)	(5		)	—
Ending balance	$	2,483		$	578		$	446		$	3		$	84		$	42		$	3,636
	Three Months Ended March 31, 2015
	Commercial			Residential Mortgage			Mortgage Warehouse			Residential Construction			Home Equity			Consumer and Other			Total
	(Dollars in thousands)
Allowance for loan losses:
Beginning balance	$	2,116		$	676		$	654		$	4		$	90		$	55		$	3,595
Charge-offs	(20		)	(5		)	—			—			—			(5		)	(30		)
Recoveries	—			—			—			—			—			5			5
Provision	154			(59		)	19			1			(5		)	(5		)	105
Ending balance	$	2,250		$	612		$	673		$	5		$	85		$	50		$	3,675

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of the dates indicated:

	March 31, 2016
	Commercial		Residential Mortgage		Mortgage Warehouse		Residential Construction		Home Equity		Consumer and Other		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending balance attributable to loans:
Individually evaluated for impairment	$	898	$	36	$	—	$	—	$	15	$	—	$	949
Collectively evaluated for impairment	1,585		542		446		3		69		42		2,687
Acquired with deteriorated credit quality	—		—		—		—		—		—		—
Total ending allowance	$	2,483	$	578	$	446	$	3	$	84	$	42	$	3,636
Loans:
Individually evaluated for impairment	$	2,850	$	1,309	$	—	$	—	$	94	$	—	$	4,253
Collectively evaluated for impairment	155,404		38,505		122,328		2,806		14,217		3,171		336,431
Acquired with deteriorated credit quality	—		105		—		—		—		—		105
Total ending loan balance	$	158,254	$	39,919	$	122,328	$	2,806	$	14,311	$	3,171	$	340,789

	December 31, 2015
	Commercial		Residential Mortgage		Mortgage Warehouse		Residential Construction		Home Equity		Consumer and Other		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending balance attributable to loans:
Individually evaluated for impairment	$	885	$	43	$	—	$	—	$	17	$	—	$	945
Collectively evaluated for impairment	1,555		548		460		4		76		46		2,689
Acquired with deteriorated credit quality	—		—		—		—		—		—		—
Total ending allowance	$	2,440	$	591	$	460	$	4	$	93	$	46	$	3,634
Loans:
Individually evaluated for impairment	$	2,920	$	1,283	$	—	$	—	$	97	$	—	$	4,300
Collectively evaluated for impairment	151,910		39,089		128,902		3,301		13,893		3,380		340,475
Acquired with deteriorated credit quality	—		106		—		—		—		—		106
Total ending loan balance	$	154,830	$	40,478	$	128,902	$	3,301	$	13,990	$	3,380	$	344,881

The following table presents information related to impaired loans by class of loans as of the dates indicated:

	March 31, 2016						December 31, 2015
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	(Dollars in thousands)
With no related allowance recorded:
Commercial:
Real estate	$	1,334	$	1,312	$	—	$	1,436	$	1,366	$	—
Residential mortgage	1,144		1,074		—		1,054		988		—
Home equity	79		79		—		81		80		—
Subtotal	2,557		2,465		—		2,571		2,434		—
With an allowance recorded:
Commercial:
Real estate	1,214		1,214		624		1,214		1,214		624
Construction	25		25		25		41		41		41
Land	430		299		249		431		299		220
Residential mortgage	295		235		36		355		295		43
Home equity	16		15		15		17		17		17
Subtotal	1,980		1,788		949		2,058		1,866		945
Total	$	4,537	$	4,253	$	949	$	4,629	$	4,300	$	945

The following tables present loans individually evaluated for impairment by class of loans for the periods indicated:

	Three Months Ended March 31,
	2016				2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded:
Commercial:
Real estate	$	1,350	$	19	$	2,933	$	45
Five or more family	—		—		3,692		60
Land	—		—		120		—
Residential mortgage	1,081		7		1,098		1
Home equity	80		1		—		—
Subtotal	2,511		27		7,843		106
With an allowance recorded:
Commercial:
Real estate	1,214		—		933		—
Construction	29		—		—		—
Land	299		—		1,440		—
Residential mortgage	236		5		916		2
Home equity	16		—		7		—
Subtotal	1,794		5		3,296		2
Total	$	4,305	$	32	$	11,139	$	108

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans as of the dates indicated.

	Nonaccrual				Loans Past Due Over 90 Days Still Accruing
	March 31, 2016		December 31, 2015		March 31, 2016		December 31, 2015
	(Dollars in thousands)
Commercial:
Real estate	$	1,362	$	1,396	—		$	—
Construction	25		41		—		—
Land	299		299		—		—
Residential mortgage	620		590		94		—
Home equity	21		23		—		—
Total	$	2,327	$	2,349	$	94	$	—

The following tables present the aging of the recorded investment in past due loans by class of loans as of the dates indicated: 

	March 31, 2016
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	—	$	—	$	—	$	—	$	17,377	$	17,377
Real estate	401		37		1,311		1,749		94,714		96,463
Five or more family	18		—		—		18		22,470		22,488
Construction	—		—		25		25		12,174		12,199
Land	—		—		—		—		9,727		9,727
Residential mortgage	—		—		624		624		39,295		39,919
Mortgage warehouse	—		—		—		—		122,328		122,328
Residential construction:
Construction	—		—		—		—		1,939		1,939
Land	—		—		—		—		867		867
Home equity	—		—		7		7		14,304		14,311
Consumer and other	—		—		—		—		3,171		3,171
Total	$	419	$	37	$	1,967	$	2,423	$	338,366	$	340,789

	December 31, 2015
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	—	$	—	$	—	$	—	$	18,117	$	18,117
Real estate	1,282		—		102		1,384		90,916		92,300
Five or more family	20		—		—		20		22,672		22,692
Construction	41		—		—		41		11,041		11,082
Land	—		—		—		—		10,639		10,639
Residential mortgage	176		—		495		671		39,807		40,478
Mortgage warehouse	—		—		—		—		128,902		128,902
Residential construction:
Construction	—		—		—		—		2,423		2,423
Land	—		—		—		—		878		878
Home equity	—		—		8		8		13,982		13,990
Consumer and other	—		—		—		—		3,380		3,380
Total	$	1,519	$	—	$	605	$	2,124	$	342,757	$	344,881

Troubled Debt Restructurings

A loan modification is considered a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the Company grants a concession it would not otherwise consider but for the borrower’s financial difficulties. The following table presents the Company’s TDRs as of the dates indicated:

	March 31, 2016		December 31, 2015
	(Dollars in thousands)
TDRs:
Performing in accordance with modified repayment terms	$	1,699	$	1,720
Nonperforming	—		—
	$	1,699	$	1,720
Specific reserve	$	—	$	—

TDRs previously disclosed resulted in no charge-offs during the three months ended March 31, 2016 and 2015. The Company had not committed to lend additional amounts to customers with outstanding TDR loans at March 31, 2016 and December 31, 2015.

The following tables present loans by class modified as TDRs that occurred during the periods indicated:

	Three Months Ended March 31,
	2016					2015
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Commercial:
Real Estate	—	$	—	$	—	1	$	207	$	207
Total	—	$	—	$	—	1	$	207	$	207

During the three months ended March 31, 2015, the concession granted by the Company consisted of a reduction in monthly payments.

There were no TDRs that defaulted within twelve months following the modification during the three months ended March 31, 2016 and 2015.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed by the Company’s Officer Loan Committee.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. The analysis includes loans with risk ratings of Special Mention, Substandard, and Doubtful. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, 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.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. The Bank monitors credit quality on loans not rated through the loan’s individual payment performance.

The following tables present the risk category of loans by class based on the most recent analysis performed as of the dates indicated:

	March 31, 2016
	Pass		Special Mention		Substandard		Doubtful
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	16,963	$	414	$	—	$	—
Real estate	92,274		1,570		2,619		—
Five or more family	22,488		—		—		—
Construction	12,174		—		25		—
Land	9,327		101		299		—
Residential mortgage	38,904		21		994		—
Mortgage warehouse	122,328		—		—		—
Residential construction:
Construction	1,939		—		—		—
Land	867		—		—		—
Home equity	14,217		—		94		—
Consumer and other	3,171		—		—		—
Total	$	334,652	$	2,106	$	4,031	$	—

	December 31, 2015
	Pass		Special Mention		Substandard		Doubtful
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	17,807	$	310	$	—	$	—
Real estate	86,548		3,075		2,677		—
Five or more family	22,692		—		—		—
Construction	11,041		—		41		—
Land	10,258		82		299		—
Residential mortgage	39,490		21		967		—
Mortgage warehouse	128,902		—		—		—
Residential construction:
Construction	2,423		—		—		—
Land	878		—		—		—
Home equity	13,893		—		97		—
Consumer and other	3,380		—		—		—
Total	$	337,312	$	3,488	$	4,081	$	—

Purchased Loans

The Company purchased loans during 2007, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was then probable that all contractually required payments would not be collected. The outstanding balance and carrying amount of those loans was as follows:

	March 31, 2016		December 31, 2015
	(Dollars in thousands)
Residential mortgage	105		106
Carrying amount, net of allowance of $0	$	105	$	106

Accretable yield, or income expected to be collected, was as follows:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Beginning balance	$	—	$	18
Reclassification from non-accretable yield	—		—
Accretion of income	—		(11		)
Ending balance	$	—	$	7

For the purchased loans disclosed above, the Company did not increase the allowance for loan losses during the three months ended March 31, 2016 or 2015. No allowance for loan losses was reversed during the three months ended March 31, 2016 or 2015.

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ALLOWANCE FOR LOAN LOSSES (Notes)

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

ALLOWANCE FOR LOAN LOSSES

LOANS

Loans were as follows for the dates indicated:

	March 31, 2016			December 31, 2015
	(Dollars in thousands)
Commercial	$	158,254		$	154,830
Residential mortgage	39,919			40,478
Mortgage warehouse	122,328			128,902
Residential construction	2,806			3,301
Home equity	14,311			13,990
Consumer and other	3,171			3,380
Subtotal	340,789			344,881
Net deferred loan costs	298			305
Allowance for loan losses	(3,636		)	(3,634		)
Loans, net	$	337,451		$	341,552

At March 31, 2016 and 2015, the Bank’s mortgage warehouse division had repurchase agreements with 34 and 29 mortgage companies, respectively. The following table identifies the activity and related interest and fee income attributable to the mortgage warehouse division for the periods presented:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Mortgage Warehouse:
Originations	$	1,051,049	$	765,001
Sold Loans	1,063,755		738,064
Interest income	1,264		1,246
Warehouse fees	340		235
Wire transfer fees	112		73
Loan servicing fees	84		—

At March 31, 2016, the total participated balance of mortgage warehouse loans was $91.0 million and the total lines of credit availability was $5.0 million. The Company records a servicing fee on the participated balances.

ALLOWANCE FOR LOAN LOSSES

The following tables present the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31, 2016
	Commercial			Residential Mortgage			Mortgage Warehouse			Residential Construction			Home Equity			Consumer and Other			Total
	(Dollars in thousands)
Allowance for loan losses:
Beginning balance	$	2,440		$	591		$	460		$	4		$	93		$	46		$	3,634
Charge-offs	—			—			—			—			—			(4		)	(4		)
Recoveries	1			—			—			—			—			5			6
Provision	42			(13		)	(14		)	(1		)	(9		)	(5		)	—
Ending balance	$	2,483		$	578		$	446		$	3		$	84		$	42		$	3,636
	Three Months Ended March 31, 2015
	Commercial			Residential Mortgage			Mortgage Warehouse			Residential Construction			Home Equity			Consumer and Other			Total
	(Dollars in thousands)
Allowance for loan losses:
Beginning balance	$	2,116		$	676		$	654		$	4		$	90		$	55		$	3,595
Charge-offs	(20		)	(5		)	—			—			—			(5		)	(30		)
Recoveries	—			—			—			—			—			5			5
Provision	154			(59		)	19			1			(5		)	(5		)	105
Ending balance	$	2,250		$	612		$	673		$	5		$	85		$	50		$	3,675

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of the dates indicated:

	March 31, 2016
	Commercial		Residential Mortgage		Mortgage Warehouse		Residential Construction		Home Equity		Consumer and Other		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending balance attributable to loans:
Individually evaluated for impairment	$	898	$	36	$	—	$	—	$	15	$	—	$	949
Collectively evaluated for impairment	1,585		542		446		3		69		42		2,687
Acquired with deteriorated credit quality	—		—		—		—		—		—		—
Total ending allowance	$	2,483	$	578	$	446	$	3	$	84	$	42	$	3,636
Loans:
Individually evaluated for impairment	$	2,850	$	1,309	$	—	$	—	$	94	$	—	$	4,253
Collectively evaluated for impairment	155,404		38,505		122,328		2,806		14,217		3,171		336,431
Acquired with deteriorated credit quality	—		105		—		—		—		—		105
Total ending loan balance	$	158,254	$	39,919	$	122,328	$	2,806	$	14,311	$	3,171	$	340,789

	December 31, 2015
	Commercial		Residential Mortgage		Mortgage Warehouse		Residential Construction		Home Equity		Consumer and Other		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending balance attributable to loans:
Individually evaluated for impairment	$	885	$	43	$	—	$	—	$	17	$	—	$	945
Collectively evaluated for impairment	1,555		548		460		4		76		46		2,689
Acquired with deteriorated credit quality	—		—		—		—		—		—		—
Total ending allowance	$	2,440	$	591	$	460	$	4	$	93	$	46	$	3,634
Loans:
Individually evaluated for impairment	$	2,920	$	1,283	$	—	$	—	$	97	$	—	$	4,300
Collectively evaluated for impairment	151,910		39,089		128,902		3,301		13,893		3,380		340,475
Acquired with deteriorated credit quality	—		106		—		—		—		—		106
Total ending loan balance	$	154,830	$	40,478	$	128,902	$	3,301	$	13,990	$	3,380	$	344,881

The following table presents information related to impaired loans by class of loans as of the dates indicated:

	March 31, 2016						December 31, 2015
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	(Dollars in thousands)
With no related allowance recorded:
Commercial:
Real estate	$	1,334	$	1,312	$	—	$	1,436	$	1,366	$	—
Residential mortgage	1,144		1,074		—		1,054		988		—
Home equity	79		79		—		81		80		—
Subtotal	2,557		2,465		—		2,571		2,434		—
With an allowance recorded:
Commercial:
Real estate	1,214		1,214		624		1,214		1,214		624
Construction	25		25		25		41		41		41
Land	430		299		249		431		299		220
Residential mortgage	295		235		36		355		295		43
Home equity	16		15		15		17		17		17
Subtotal	1,980		1,788		949		2,058		1,866		945
Total	$	4,537	$	4,253	$	949	$	4,629	$	4,300	$	945

The following tables present loans individually evaluated for impairment by class of loans for the periods indicated:

	Three Months Ended March 31,
	2016				2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded:
Commercial:
Real estate	$	1,350	$	19	$	2,933	$	45
Five or more family	—		—		3,692		60
Land	—		—		120		—
Residential mortgage	1,081		7		1,098		1
Home equity	80		1		—		—
Subtotal	2,511		27		7,843		106
With an allowance recorded:
Commercial:
Real estate	1,214		—		933		—
Construction	29		—		—		—
Land	299		—		1,440		—
Residential mortgage	236		5		916		2
Home equity	16		—		7		—
Subtotal	1,794		5		3,296		2
Total	$	4,305	$	32	$	11,139	$	108

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans as of the dates indicated.

	Nonaccrual				Loans Past Due Over 90 Days Still Accruing
	March 31, 2016		December 31, 2015		March 31, 2016		December 31, 2015
	(Dollars in thousands)
Commercial:
Real estate	$	1,362	$	1,396	—		$	—
Construction	25		41		—		—
Land	299		299		—		—
Residential mortgage	620		590		94		—
Home equity	21		23		—		—
Total	$	2,327	$	2,349	$	94	$	—

The following tables present the aging of the recorded investment in past due loans by class of loans as of the dates indicated: 

	March 31, 2016
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	—	$	—	$	—	$	—	$	17,377	$	17,377
Real estate	401		37		1,311		1,749		94,714		96,463
Five or more family	18		—		—		18		22,470		22,488
Construction	—		—		25		25		12,174		12,199
Land	—		—		—		—		9,727		9,727
Residential mortgage	—		—		624		624		39,295		39,919
Mortgage warehouse	—		—		—		—		122,328		122,328
Residential construction:
Construction	—		—		—		—		1,939		1,939
Land	—		—		—		—		867		867
Home equity	—		—		7		7		14,304		14,311
Consumer and other	—		—		—		—		3,171		3,171
Total	$	419	$	37	$	1,967	$	2,423	$	338,366	$	340,789

	December 31, 2015
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	—	$	—	$	—	$	—	$	18,117	$	18,117
Real estate	1,282		—		102		1,384		90,916		92,300
Five or more family	20		—		—		20		22,672		22,692
Construction	41		—		—		41		11,041		11,082
Land	—		—		—		—		10,639		10,639
Residential mortgage	176		—		495		671		39,807		40,478
Mortgage warehouse	—		—		—		—		128,902		128,902
Residential construction:
Construction	—		—		—		—		2,423		2,423
Land	—		—		—		—		878		878
Home equity	—		—		8		8		13,982		13,990
Consumer and other	—		—		—		—		3,380		3,380
Total	$	1,519	$	—	$	605	$	2,124	$	342,757	$	344,881

Troubled Debt Restructurings

A loan modification is considered a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the Company grants a concession it would not otherwise consider but for the borrower’s financial difficulties. The following table presents the Company’s TDRs as of the dates indicated:

	March 31, 2016		December 31, 2015
	(Dollars in thousands)
TDRs:
Performing in accordance with modified repayment terms	$	1,699	$	1,720
Nonperforming	—		—
	$	1,699	$	1,720
Specific reserve	$	—	$	—

TDRs previously disclosed resulted in no charge-offs during the three months ended March 31, 2016 and 2015. The Company had not committed to lend additional amounts to customers with outstanding TDR loans at March 31, 2016 and December 31, 2015.

The following tables present loans by class modified as TDRs that occurred during the periods indicated:

	Three Months Ended March 31,
	2016					2015
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Commercial:
Real Estate	—	$	—	$	—	1	$	207	$	207
Total	—	$	—	$	—	1	$	207	$	207

During the three months ended March 31, 2015, the concession granted by the Company consisted of a reduction in monthly payments.

There were no TDRs that defaulted within twelve months following the modification during the three months ended March 31, 2016 and 2015.

A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed by the Company’s Officer Loan Committee.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. The analysis includes loans with risk ratings of Special Mention, Substandard, and Doubtful. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, 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.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. The Bank monitors credit quality on loans not rated through the loan’s individual payment performance.

The following tables present the risk category of loans by class based on the most recent analysis performed as of the dates indicated:

	March 31, 2016
	Pass		Special Mention		Substandard		Doubtful
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	16,963	$	414	$	—	$	—
Real estate	92,274		1,570		2,619		—
Five or more family	22,488		—		—		—
Construction	12,174		—		25		—
Land	9,327		101		299		—
Residential mortgage	38,904		21		994		—
Mortgage warehouse	122,328		—		—		—
Residential construction:
Construction	1,939		—		—		—
Land	867		—		—		—
Home equity	14,217		—		94		—
Consumer and other	3,171		—		—		—
Total	$	334,652	$	2,106	$	4,031	$	—

	December 31, 2015
	Pass		Special Mention		Substandard		Doubtful
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	17,807	$	310	$	—	$	—
Real estate	86,548		3,075		2,677		—
Five or more family	22,692		—		—		—
Construction	11,041		—		41		—
Land	10,258		82		299		—
Residential mortgage	39,490		21		967		—
Mortgage warehouse	128,902		—		—		—
Residential construction:
Construction	2,423		—		—		—
Land	878		—		—		—
Home equity	13,893		—		97		—
Consumer and other	3,380		—		—		—
Total	$	337,312	$	3,488	$	4,081	$	—

Purchased Loans

The Company purchased loans during 2007, for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was then probable that all contractually required payments would not be collected. The outstanding balance and carrying amount of those loans was as follows:

	March 31, 2016		December 31, 2015
	(Dollars in thousands)
Residential mortgage	105		106
Carrying amount, net of allowance of $0	$	105	$	106

Accretable yield, or income expected to be collected, was as follows:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Beginning balance	$	—	$	18
Reclassification from non-accretable yield	—		—
Accretion of income	—		(11		)
Ending balance	$	—	$	7

For the purchased loans disclosed above, the Company did not increase the allowance for loan losses during the three months ended March 31, 2016 or 2015. No allowance for loan losses was reversed during the three months ended March 31, 2016 or 2015.

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FAIR VALUE

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE

FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

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 company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial asset:

Investment Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2).

Loans Held for Sale and Loan Commitment Derivatives: The fair value of loans held for sale and residential mortgage loan commitments are determined by obtaining quoted prices for similar loans and commitments with similar interest rates and maturities from major secondary markets (Level 2).

Derivatives-Interest Rate Swaps: The fair values of derivatives are based on valuation models using observable market data as of the measurement date (Level 2).

Impaired Loans: At the time a loan is considered impaired, it is valued at the lower of cost or fair value, less estimated costs to sell. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses. For collateral dependent loans, fair value is commonly based on recent real estate appraisals performed by qualified independent third-party appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including cost, comparable sales, and the income approach. The cost approach is based on the cost to replace the existing property. The comparable sales approach evaluates the sales prices of comparable properties within the same market area. The income approach considers net operating income generated by the property and the rate of return required by an investor. Adjustments are routinely made in the appraisal process by the independent third-party appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Other Real Estate Owned: Assets acquired through or instead of loan foreclosures are initially recorded at fair value less cost to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at the lower of cost or fair value, less estimated costs to sell. Fair value is commonly based on recent real estate appraisals performed by qualified independent third-party appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including cost, comparable sales, and the income approach. The cost approach is based on the cost to replace the existing property. The comparable sales approach evaluates the sales prices of comparable properties within the same market area. The income approach considers net operating income generated by the property and the rate of return required by an investor. Adjustments are routinely made in the appraisal process by the independent third-party appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

The President and Chief Financial Officer (“President/CFO”), Senior Vice President – Chief Accounting Officer (“SVP – CAO”), and Executive Vice President – Credit (“EVP – Credit”) are responsible for determining the valuation processes and procedures for the fair value measurement of impaired loans and other real estate owned properties. The President/CFO, SVP – CAO, and EVP – Credit review impaired loans and other real estate owned properties on a quarterly basis to determine the accuracy of third-party appraisals, auction values, values derived from trade publications, any additional data received from the borrower, and the appropriateness of unobservable inputs, generally discounts due to collection issues and current market conditions which are utilized in determining the fair value. The EVP – Credit determines discounts based on the valuation source and asset type for impaired loans. These discounts are reviewed periodically, annually at a minimum, for appropriateness. Current trends in market values and gains and losses on sales of similar assets are also considered when determining discounts of asset categories.

The tables below present the valuation methodology and unobservable inputs for impaired loans and other real estate owned at March 31, 2016 and December 31, 2015.

	March 31, 2016
	Valuation Methodology	Unobservable Inputs	Range of Inputs	Average of Inputs
Impaired loans:
Commercial land	Appraisals	Discounts for changes in market conditions	74%	74%
Other real estate owned, net:
Commercial real estate	Appraisals	Discounts for changes in market conditions	54%	54%

	December 31, 2015
	Valuation Methodology	Unobservable Inputs	Range of Inputs	Average of Inputs
Impaired loans:
Commercial:
Real estate	Appraisals	Discounts for changes in market conditions	8%	8%
Land	Appraisals	Discounts for changes in market conditions	10%	10%
Residential mortgage	Appraisals	Discounts for changes in market conditions	0-20%	10%
Other real estate owned, net:
Residential mortgage	Appraisals	Discounts for changes in market conditions	30%	30%

Mortgage Servicing Rights: On a quarterly basis, loan servicing rights are evaluated for impairment based on the fair value of the rights as compared to the carrying amount. If the carrying amount of an individual tranche exceeds fair value, impairment is recorded on that tranche so that the servicing asset is carried at fair value. Fair value is determined at a tranche level, based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model utilizes assumptions that market participants would use in estimating future net servicing income and that can be validated against available market data (Level 2).

Fair value at March 31, 2016 was determined using a discount rate of 10.0%; prepayment speeds ranging from 8.0% to 20.9%, depending on the stratification of the specific right; and a weighted average default rate of approximately 0.5%. Fair value at December 31, 2015 was determined using a discount rate of 10.0%; prepayment speeds ranging from 6.9% to 22.1%, depending on the stratification of the specific right; and a weighted average default rate of approximately 0.5%.

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized in the following tables:

				March 31, 2016
	Carrying Value			Quoted Prices in Active Markets  for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial Assets:
Investment securities available-for-sale:
U.S. federal agency obligations	$	11,121		$	—	$	11,121		$	—
State and municipal	52,597			—		52,597			—
Mortgage-backed securities – residential	16,839			—		16,839			—
Government agency sponsored collateralized mortgage obligations	40,736			—		40,736			—
Corporate debt securities	948			—		948			—
Total investment securities available-for-sale	$	122,241		$	—	$	122,241		$	—
Loans held for sale	$	686		$	—	$	686		$	—
Derivatives – residential mortgage loan commitments	$	54		$	—	$	54		$	—
Financial Liabilities:
Derivatives – interest rate swaps	$	(1,872	)	$	—	$	(1,872	)	$	—

				December 31, 2015
	Carrying Value			Quoted Prices in Active Markets  for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial Assets:
Investment securities available-for-sale:
U.S. federal agency obligations	$	9,372		$	—	$	9,372		$	—
State and municipal	52,400			—		52,400			—
Mortgage-backed securities – residential	17,696			—		17,696			—
Government agency sponsored collateralized mortgage obligations	41,836			—		41,836			—
Corporate debt securities	939			—		939			—
Total investment securities available-for-sale	$	122,243		$	—	$	122,243		$	—
Loans held for sale	$	3,581		$	—	$	3,581		$	—
Derivatives – residential mortgage loan commitments	$	39		$	—	$	39		$	—
Financial Liabilities:
Derivatives – interest rate swaps	$	(1,265	)	$	—	$	(1,265	)	$	—

There were no transfers between Level 1, Level 2, and Level 3 during the periods indicated above.

The difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale was:

	March 31, 2016						December 31, 2015
	Aggregate Fair Value		Difference		Contractual Principal		Aggregate Fair Value		Difference		Contractual Principal
	(Dollars in thousands)
Loans held for sale	$	686	$	22	$	664	$	3,581	$	110	$	3,471

The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
	2016			2015
	(Dollars in thousands)
Loans held for sale:
Other gains (losses)	$	(88	)	$	(11	)
Interest income	15			5
Interest expense	—			—
Total changes in fair values included in current period earnings	$	(73	)	$	(6	)

For items for which the fair value option has been elected, interest income is recorded within the consolidated statements of income and comprehensive income (loss) based on the contractual amount of interest income earned on financial assets (none were delinquent or in nonaccrual status).

Assets measured at fair value on a non-recurring basis are summarized below:

			March 31, 2016
	Carrying Value		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Impaired loans:
Commercial land	$	50	$	—	$	—	$	50
Other real estate owned, net:
Commercial real estate	41		—		—		41
Mortgage servicing rights	180		—		180		—

			December 31, 2015
	Carrying Value		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Impaired loans:
Commercial:
Real estate	$	590	$	—	$	—	$	590
Land	79		—		—		79
Residential mortgage	252		—		—		252
Other real estate owned, net:
Residential mortgage	36		—		—		36
Mortgage servicing rights	145		—		145		—

Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a gross carrying amount of $299,000, with a valuation allowance of $249,000 at March 31, 2016, resulting in an additional provision of $29,000 for the three months ended March 31, 2016. At March 31, 2015, impaired loans had a carrying amount of $1.8 million, with a valuation allowance of $767,000, resulting in an additional provision for loan losses of $261,000 for the three months ended March 31, 2015.

At March 31, 2016, other real estate owned had a carrying amount of $41,000, which resulted in write-downs of $30,000 for the three months ended March 31, 2016. During the three months ended March 31, 2015, no write-downs were recorded on the carrying amount of other real estate owned, which is measured at the lower of cost or fair value less costs to sell.

Mortgage servicing rights, which are carried at lower of cost or fair value, were carried at their fair value of $180,000 at March 31, 2016, which was made up of the outstanding balance of $274,000, net of a valuation allowance of $94,000, resulting in a charge of $8,000 for the three months ended March 31, 2016. At March 31, 2015, mortgage servicing rights were carried at their fair value of $196,000, which was made up of the outstanding balance of $301,000, net of a valuation allowance of $105,000, resulting in a charge of $14,000 for the three months ended March 31, 2015.

The carrying amounts and estimated fair values of financial instruments for the periods presented are as follows:

				March 31, 2016
	Carrying Value			Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial assets:
Cash and due from financial institutions	$	11,361		$	11,361	$	—		$	—
Interest-earning time deposits at other financial institutions	14,532			—		14,596			—
Securities available-for-sale	122,241			—		122,241			—
Loans held for sale	686			—		686			—
Loans, net	337,451			—		—			340,354
Federal Home Loan Bank stock	4,029			—		4,029			—
Accrued interest receivable	1,404			—		689			716
Financial liabilities:
Deposits	$	(361,156	)	$	—	$	(361,719	)	$	—
Federal Home Loan Bank advances	(69,132		)	—		(69,786		)	—
Subordinated debentures	(5,155		)	—		—			(5,146		)
Accrued interest payable	(182		)	—		(179		)	(3		)
Derivatives – interest rate swaps	(1,872		)	—		(1,872		)	—

				December 31, 2015
	Carrying Value			Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial assets:
Cash and due from financial institutions	$	18,459		$	18,459	$	—		$	—
Interest-earning time deposits at other financial institutions	13,599			—		13,641			—
Securities available-for-sale	122,243			—		122,243			—
Loans held for sale	3,581			—		3,581			—
Loans, net	341,552			—		—			344,488
Federal Home Loan Bank stock	4,029			—		4,029			—
Accrued interest receivable	1,519			—		760			759
Financial liabilities:
Deposits	$	(390,959	)	$	—	$	(390,914	)	$	—
Federal Home Loan Bank advances	(55,000		)	—		(55,197		)	—
Subordinated debentures	(5,155		)	—		—			(5,139		)
Accrued interest payable	(175		)	—		(172		)	(3		)
Derivatives – interest rate swaps	(1,265		)	—		(1,265		)	—

The methods and assumptions, not previously presented, used to estimate fair value are described as follows:

Cash and due from financial institutions: The carrying amounts of cash and due from financial institutions approximate fair values and are classified as Level 1.

Interest-earning time deposits at other financial institutions: The fair values of the Company’s interest-earning time deposits at other financial institutions are estimated using discounted cash flow analyses based on current rates for similar types of interest-earning time deposits and are classified as Level 2.

Loans held for sale: The fair value of loans held for sale is estimated based upon binding contracts and quotes from third-party investors resulting in Level 2 classification.

Loans: The fair values of loans are based on discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price.

Federal Home Loan Bank stock: The fair value of Federal Home Loan Bank stock is based on the price at which it may be resold to the Federal Home Loan Bank.

Deposits: The carrying amounts of demand deposits approximate their fair values and are classified as Level 2. Fair values of fixed rate certificates of deposit are estimated using a cash flow calculation reduced by known maturities, estimated principal payments, and estimated early withdrawal amounts. These cash flows are discounted to the current market rate. This method results in a Level 2 calculation.

Federal Home Loan Bank Advances: The fair values of the Company’s Federal Home Loan Bank advances are estimated using discounted cash flow analyses based on current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification.

Subordinated Debentures: The fair value of the Company’s subordinated debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification.

Short-term borrowings: The carrying amounts of short-term borrowings approximate fair values and are classified as Level 2.

Accrued Interest Receivable/Payable: The carrying amounts of accrued interest approximate fair value resulting in a Level 1, Level 2, or Level 3 classification based on the underlying asset or liability.

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DERIVATIVES

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

DERIVATIVES

The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swap does not represent an amount exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreement.

The counterparties to the Company’s derivatives are exposed to credit risk whenever the derivative is in a liability position. As a result, the Company has collateralized these liabilities with securities held in safekeeping by The Bank of New York and PNC Bank. At March 31, 2016 and December 31, 2015, the Company had securities with a fair value of $4.0 million and $3.7 million, respectively, posted as collateral for these derivatives.

Interest Rate Swaps Designated as Cash Flow Hedges: Interest rate swaps with notional amounts of $40.0 million as of March 31, 2016 and December 31, 2015, respectively, were designated as cash flow hedges of FHLB advances.

All interest rate swaps were determined to be fully effective during the periods presented. As such, no amount of ineffectiveness has been included in net income. Therefore, the aggregate fair value of the swaps is recorded in other assets (liabilities) with changes in fair value recorded in other comprehensive income (loss). The amount included in accumulated other comprehensive income (loss) would be reclassified to current earnings should the hedges no longer be considered effective. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence, or the Company discontinues hedge accounting. The Company expects the hedges to remain fully effective during the remaining terms of the swaps. The Company does not expect any amounts to be reclassified from other comprehensive income (loss) over the next 12 months.

Information related to the interest-rate swaps designated as cash flow hedges as of March 31, 2016 and December 31, 2015 were as follows:

	March 31, 2016			December 31, 2015
	(Dollars in thousands)
FHLB advance:
Notional amount	$	10,000		$	10,000
Unrealized losses	(86		)	(154		)
Fixed interest rate payable	3.69		%	3.69		%
Variable interest rate receivable (Three month LIBOR plus 0.25%)	0.87			0.57
Maturity date	July 19, 2016
FHLB advance:
Notional amount	$	10,000		$	10,000
Unrealized losses	(466		)	(276		)
Fixed interest rate payable	2.09		%	2.09		%
Variable interest rate receivable (One month LIBOR)	0.44			0.35
Maturity date	March 15, 2020
FHLB advance:
Notional amount	$	10,000		$	10,000
Unrealized losses	(541		)	(339		)
Fixed interest rate payable	2.23		%	2.23		%
Variable interest rate receivable (One month LIBOR)	0.44			0.35
Maturity date	June 15, 2020
FHLB advance:
Notional amount	$	10,000		$	10,000
Unrealized losses	(779		)	(496		)
Fixed interest rate payable	2.62		%	2.62		%
Variable interest rate payable (One month LIBOR)	0.44			—
Maturity date	March 15, 2021

Interest expense recorded on these swap transactions is reported as a component of interest expense on FHLB advances. Interest expense recorded on these swap transactions totaled $171,000 and $127,000 during the three months ended March 31, 2016 and 2015, respectively.

The following table presents the net gains (losses) recorded in accumulated other comprehensive income (loss) and the Consolidated Statements of Income relating to the Company’s cash flow derivative instruments for the periods indicated:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Interest rate contracts:
Net amount of gain (loss):
Recognized in OCI (Effective Portion)	$	400	$	296
Reclassified from OCI to interest income	—		—
Recognized in other non-interest income (Ineffective Portion)	—		—

The following table reflects the cash flow hedges included in the Consolidated Balance Sheets as of the dates indicated:

	March 31, 2016						December 31, 2015
	Notional Amount			Fair Value			Notional Amount			Fair Value
	(Dollars in thousands)
Included in other liabilities:
Interest rate swaps related to FHLB advances	$	(40,000	)	$	(1,872	)	$	(40,000	)	$	(1,265	)

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STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

During the month of September 2011, the Company implemented the 2011 Equity Incentive Plan (the “2011 Plan”) which was approved by shareholders on May 10, 2011. The 2011 Plan provided for the issuance of stock options or restricted share awards to directors and employees. Total shares authorized for issuance under the 2011 Plan were 417,543.

On May 13, 2014, the Company’s shareholders approved the 2014 Equity Incentive Plan (the “2014 Plan”) which provides for the issuance of stock options or restricted share awards to directors and employees and effectively terminated the 2011 Plan. The total shares authorized for issuance under the 2014 Plan are 473,845 shares of the Company’s common stock plus, at the date the 2014 Plan was approved, there were 14,471 shares of stock that were rolled over from the terminated 2011 Plan and added to the shares available for awards under the 2014 Plan. In addition, any stock awards that had been granted under the 2011 Plan and subsequently forfeited were also included for issuance under the 2014 Plan.

On October, 14, 2014, the Company implemented the 2014 Plan and granted 332,250 shares of stock as stock options and 126,800 shares of stock as restricted share awards to directors and employees. Compensation costs related to these grants will be amortized over a five year period on a straight-line basis. The options and restricted share awards vest 20% annually.

Compensation expense related to the Plans totaled $170,000 and $173,000 for the three months ended March 31, 2016 and 2015, respectively.

Stock-Based Compensation

Compensation expense is recognized for stock options and restricted stock awards issued to employees or directors based on their grant date fair value. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Company’s common stock at the grant date is used for restricted stock awards.

Compensation expense is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation expense is recognized on a straight-line basis over the requisite service period for the entire award.

Stock Options

The 2011 Plan permitted the stock option grants to employees or directors for up to 298,245 shares of common stock. The 2014 Plan permits stock option grants to directors and employees for up to 352,544 shares of common stock. Option awards are generally granted with an exercise price equal to the market price of the Company’s common stock on the grant date. Option awards have vesting periods of five years and ten-year contractual terms. Options granted generally vest 20% annually.

The fair value of each option award is estimated on the grant date using a closed form option valuation (Black-Scholes) model. Expected volatilities are based on historical volatilities of companies within the Company’s peer group. The expected term of options granted represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

Below is the summary of the activity in the stock option plan for the period presented:

	Three Months Ended March 31, 2016
	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
	(Dollars in thousands, except per share data)
Outstanding at January 1, 2016	581,826		$	9.40	7.5 years	$	3,377
Granted	—		—
Exercised	(1,892	)	8.31
Forfeited or expired	—		—
Outstanding at March 31, 2016	579,934		$	9.40	7.3 years	$	3,689
Exercisable at end of period	256,962		$	7.79	6.3 years	$	2,048

During the three months ended March 31, 2016, 1,892 options were exercised which had an intrinsic value of $13,000. The Company received $16,000 in cash and realized $6,000 in tax benefits related to the exercise of these options. At March 31, 2016, there was $587,000 of total unrecognized compensation cost related to nonvested stock options granted, which is expected to be expensed over a weighted-average period of 3.3 years. The 2014 Plan had 22,132 shares available for future grant at March 31, 2016.

Restricted Share Awards

The 2011 Plan provided for the issuance of up to 119,298 restricted shares to directors and employees. The 2014 Plan provides for the issuance of up to 135,772 of restricted shares to directors and employees. Compensation expense is recognized over the vesting period of the awards based on the grant date fair value of the Company’s common stock at issue date as determined by the listing price on the respective date. Shares vest 20% annually over five years. The 2014 Plan had 9,870 shares available for future grant at March 31, 2016.

A summary of changes in the Company’s nonvested restricted shares the was as follows for the period presented:

	Three Months Ended March 31, 2016
	Shares	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2016	125,152	$	10.58
Granted	—	—
Vested	—	—
Forfeited	—	—
Nonvested at March 31, 2016	125,152	$	10.58

At March 31, 2016, there was $1.1 million of total unrecognized compensation expense related to nonvested shares granted, which is expected to be recognized over a weighted-average period of 3.3 years. At March 31, 2016, the nonvested shares had an intrinsic value of $649,000.

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

A summary of the reclassifications out of accumulated other comprehensive income (loss) for the periods indicated is as follows:

	Three Months Ended March 31,
	2016		2015
	Amount Reclassified from Accumulated Other Comprehensive  Income (Loss)		Amount Reclassified from Accumulated Other Comprehensive  Income (Loss)
	(Dollars in thousands)
Unrealized gains and losses on available-for-sale securities:
Net gains on securities	$	—	$	50
Income tax expense	—		(17		)
Net of tax	$	—	$	33

A summary of the changes in accumulated other comprehensive income (loss) by component for the periods indicated is as follows:

	Three Months Ended March 31,
	2016							2015
	Gains (Losses) on Cash Flow Hedges			Unrealized  Gains (Losses) on Available- for-Sale Securities		Total		Gains (Losses) on Cash Flow Hedges			Unrealized  Gains (Losses) on Available- for-Sale Securities			Total
	(Dollars in thousands)
Beginning balance	$	(836	)	$	1,146	$	310	$	(763	)	$	1,285		$	522
Other comprehensive income (loss) before reclassification	(400		)	857		457		(296		)	668			372
Amounts reclassified from accumulated other comprehensive income (loss)	—			—		—		—			(33		)	(33		)
Net current period other comprehensive income (loss)	(400		)	857		457		(296		)	635			339
Ending balance	$	(1,236	)	$	2,003	$	767	$	(1,059	)	$	1,920		$	861

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

A summary of the changes in accumulated other comprehensive income (loss) by component for the periods indicated is as follows:

	Three Months Ended March 31,
	2016							2015
	Gains (Losses) on Cash Flow Hedges			Unrealized  Gains (Losses) on Available- for-Sale Securities		Total		Gains (Losses) on Cash Flow Hedges			Unrealized  Gains (Losses) on Available- for-Sale Securities			Total
	(Dollars in thousands)
Beginning balance	$	(836	)	$	1,146	$	310	$	(763	)	$	1,285		$	522
Other comprehensive income (loss) before reclassification	(400		)	857		457		(296		)	668			372
Amounts reclassified from accumulated other comprehensive income (loss)	—			—		—		—			(33		)	(33		)
Net current period other comprehensive income (loss)	(400		)	857		457		(296		)	635			339
Ending balance	$	(1,236	)	$	2,003	$	767	$	(1,059	)	$	1,920		$	861

A summary of the reclassifications out of accumulated other comprehensive income (loss) for the periods indicated is as follows:

	Three Months Ended March 31,
	2016		2015
	Amount Reclassified from Accumulated Other Comprehensive  Income (Loss)		Amount Reclassified from Accumulated Other Comprehensive  Income (Loss)
	(Dollars in thousands)
Unrealized gains and losses on available-for-sale securities:
Net gains on securities	$	—	$	50
Income tax expense	—		(17		)
Net of tax	$	—	$	33

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OFFSETTING FINANCIAL ASSETS AND LIABILITIES

3 Months Ended

Mar. 31, 2016

Offsetting Financial Assets And Liabilities [Abstract]

OFFSETTING FINANCIAL ASSETS AND LIABILITIES

OFFSETTING FINANCIAL ASSETS AND LIABILITIES

The following tables summarize gross and net information about financial instruments and derivative instruments that are offset in the Company’s statement of Consolidated Balance Sheets or that are subject to an enforceable master netting arrangement at March 31, 2016 and December 31, 2015.

	March 31, 2016
	Gross Amounts of Recognized Liabilities		Gross  Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Financial Instruments			Cash  Collateral Pledged		Net Amount
	(Dollars in thousands)
Derivatives	$	1,872	$	—	$	1,872	$	(3,977	)	$	—	$	(2,105	)

	December 31, 2015
	Gross Amounts of Recognized Liabilities		Gross  Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Financial Instruments			Cash  Collateral Pledged		Net Amount
	(Dollars in thousands)
Derivatives	$	1,265	$	—	$	1,265	$	(3,696	)	$	—	$	(2,431	)

If an event of default occurs causing an early termination of an interest rate swap derivative, an early termination amount payable to one party by the other party may be reduced by set-off against any other amount payable by the one party to the other party. If a default in performance of any obligation of a repurchase agreement occurs, each party will set-off property held in respect of transactions against obligations owing in respect of any other transactions.

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PENDING MERGER

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

PENDING MERGER

PENDING MERGER

On March 10, 2016, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Horizon Bancorp (“Horizon”), an Indiana corporation. Pursuant to the Merger Agreement, the Company will merge with and into Horizon, with Horizon as the surviving corporation (the “Merger”). Immediately following the Merger, The La Porte Savings Bank, an Indiana chartered savings bank and wholly-owned subsidiary of the Company (“LPS Bank”), will merge with and into Horizon Bank, National Association, the wholly-owned national bank subsidiary of Horizon (“Horizon Bank”), with Horizon Bank as the surviving bank.

Subject to the terms and conditions of the Merger Agreement, upon the completion of the Merger, each share of outstanding Company common stock, $0.01 par value per share, will be converted into 0.629 shares (the “Exchange Ratio”) of Horizon common stock, no par value, or $17.50 per share in cash. The Merger Agreement provides that, in the aggregate, 65% of the outstanding shares of the Company will be converted into the right to receive shares of Horizon common stock and the remaining 35% of the outstanding shares of the Company will be converted into the right to receive cash. The Exchange Ratio is subject to adjustments for stock splits, stock dividends, recapitalization, or similar transactions, or as otherwise described in the Merger Agreement. No fractional shares of Horizon common stock will be issued arising from the Exchange Ratio, instead, Horizon will pay each holder of Company stock an amount in cash determined by multiplying the fractional shares by an average of the daily closing sales price of a share of Horizon’s common stock during the 15 consecutive trading days immediately preceding the second business day prior to the closing date of the Merger. Immediately prior to the Merger, each outstanding stock option to purchase Company common stock will be converted into the right to receive cash equal to $17.50 minus the per share exercise price for each stock option, minus any applicable taxes required to be withheld by law. The Merger remains subject to regulatory approval, Company shareholder approval and other customary closing conditions. Based on Horizon’s March 9, 2016 closing price of $24.21 per share as reported on the NASDAQ Global Select Market, the transaction value is estimated at $94.1 million.

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SUBSEQUENT EVENT

3 Months Ended

Mar. 31, 2016

Subsequent Events [Abstract]

SUBSEQUENT EVENT

SUBSEQUENT EVENT

On April 26, 2016, a shareholder class and derivative action lawsuit was filed against the Company, each of LaPorte Bancorp’s directors, and Horizon in connection with the Company entering into the Merger Agreement with Horizon. The lawsuit, which was filed in the Superior Court of LaPorte County, Indiana, alleges that the members of LaPorte Bancorp’s Board of Directors breached their fiduciary duties to the Company’s shareholders by approving the proposed Merger for inadequate consideration; entering into the Merger Agreement containing unreasonable deal protection devices; and approving the transaction in order to receive benefits not equally shared by all other LaPorte Bancorp shareholders. The lawsuit also alleges claims against Horizon for aiding and abetting these alleged breaches of fiduciary duties. The plaintiff seeks, among other things, class certification, declaratory relief, to enjoin the consummation of the proposed transaction, rescission or recissory damages if the Merger is consummated, costs and reasonable attorneys’ and experts’ fees. The Company believes the claims asserted in this action to be without merit and intends to vigorously defend against this lawsuit. However, at this time, it is not possible to predict the outcome of the proceeding or its impact on LaPorte Bancorp, Horizon, or the proposed Merger.

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BASIS OF PRESENTATION AND CONSOLIDATION (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Reclassifications

Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation.

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EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Factors Used in Earnings Per Common Share Computation

The factors used in the earnings per common share computation follow:

	Three Months Ended March 31,
	2016			2015
	(Dollars in thousands, except per share data)
Basic:
Net income	$	595		$	952
Weighted average common shares outstanding	5,579,678			5,627,687
Less: Average unallocated ESOP shares	(356,965		)	(379,449		)
Average shares	5,222,713			5,248,238
Basic earnings per common share	$	0.11		$	0.18
Diluted:
Net income	$	595		$	952
Weighted average common shares outstanding for basic earnings per common share	5,222,713			5,248,238
Add: Dilutive effects of assumed exercises of stock options	162,603			109,750
Average shares and dilutive potential common shares	5,385,316			5,357,988
Diluted earnings per common share	$	0.11		$	0.18

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SECURITIES AVAILABLE FOR SALE (Tables)

3 Months Ended

Mar. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Amortized Cost and Fair Value of Available-for-Sale Securities and Related Gross Unrealized Gains and Losses

The amortized cost and fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows:

	March 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. federal agency obligations	$	11,052	$	70	$	(1	)	$	11,121
State and municipal	49,976		2,621		—			52,597
Mortgage-backed securities – residential	16,585		263		(9		)	16,839
Government agency sponsored collateralized mortgage obligations	40,595		352		(211		)	40,736
Corporate debt securities	1,000		—		(52		)	948
Total	$	119,208	$	3,306	$	(273	)	$	122,241

	December 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
U.S. federal agency obligations	$	9,442	$	1	$	(71	)	$	9,372
State and municipal	50,020		2,397		(17		)	52,400
Mortgage-backed securities – residential	17,671		98		(73		)	17,696
Government agency sponsored collateralized mortgage obligations	42,376		139		(679		)	41,836
Corporate debt securities	1,000		—		(61		)	939
Total	$	120,509	$	2,635	$	(901	)	$	122,243

Fair Value of Securities with Unrealized Losses, Aggregated by Investment Category and Length of Time

Securities with unrealized losses at March 31, 2016 and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:

	March 31, 2016
	Continuing Unrealized Loss For Less Than 12 Months					Continuing Unrealized Loss For 12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(Dollars in thousands)
U.S. federal agency obligations	$	1,099	$	(1	)	$	—	$	—		$	1,099	$	(1	)
Mortgage-backed securities – residential	900		(3		)	813		(6		)	1,713		(9		)
Government agency sponsored collateralized mortgage obligations	3,087		(32		)	15,667		(179		)	18,754		(211		)
Corporate debt securities	—		—			948		(52		)	948		(52		)
Total temporarily impaired	$	5,086	$	(36	)	$	17,428	$	(237	)	$	22,514	$	(273	)

	December 31, 2015
	Continuing Unrealized Loss For Less Than 12 Months					Continuing Unrealized Loss For 12 Months or More					Total
	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
	(Dollars in thousands)
U.S. federal agency obligations	$	8,371	$	(71	)	$	—	$	—		$	8,371	$	(71	)
State and municipal	4,512		(14		)	856		(3		)	5,368		(17		)
Mortgage-backed securities – residential	9,259		(48		)	809		(25		)	10,068		(73		)
Government agency sponsored collateralized mortgage obligations	11,200		(136		)	18,148		(543		)	29,348		(679		)
Corporate debt securities	—		—			939		(61		)	939		(61		)
Total temporarily impaired	$	33,342	$	(269	)	$	20,752	$	(632	)	$	54,094	$	(901	)

Sales of Securities Available for Sale

ales of securities available-for-sale were as follows:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Proceeds	$	—	$	10,262
Gross gains	—		84
Gross losses	—		(34		)

Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

The amortized cost and fair value of debt securities at March 31, 2016 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities and collateralized mortgage obligations (“CMO”), are shown separately.

	March 31, 2016
	Amortized Cost		Fair Value
	(Dollars in thousands)
Due in one year or less	$	1,249	$	1,262
Due from one to five years	23,354		23,816
Due from five to ten years	26,625		27,976
Due after ten years	10,800		11,612
Subtotal	62,028		64,666
Mortgage-backed securities and government agency sponsored collateralized mortgage obligations	57,180		57,575
Total	$	119,208	$	122,241

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LOANS (Tables)

3 Months Ended

Mar. 31, 2016

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Accounts, Notes, Loans and Financing Receivable

Loans were as follows for the dates indicated:

	March 31, 2016			December 31, 2015
	(Dollars in thousands)
Commercial	$	158,254		$	154,830
Residential mortgage	39,919			40,478
Mortgage warehouse	122,328			128,902
Residential construction	2,806			3,301
Home equity	14,311			13,990
Consumer and other	3,171			3,380
Subtotal	340,789			344,881
Net deferred loan costs	298			305
Allowance for loan losses	(3,636		)	(3,634		)
Loans, net	$	337,451		$	341,552

March 31, 2016 and 2015, the Bank’s mortgage warehouse division had repurchase agreements with 34 and 29 mortgage companies, respectively. The following table identifies the activity and related interest and fee income attributable to the mortgage warehouse division for the periods presented:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Mortgage Warehouse:
Originations	$	1,051,049	$	765,001
Sold Loans	1,063,755		738,064
Interest income	1,264		1,246
Warehouse fees	340		235
Wire transfer fees	112		73
Loan servicing fees	84		—

At March 31, 2016, the total participated balance of mortgage warehouse loans was $91.0 million and the total lines of credit availability was $5.0 million. The Company records a servicing fee on the participated balances.

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ALLOWANCE FOR LOAN LOSSES (Tables)

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Allowance for Loan Losses by Portfolio Segment

The following tables present the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31, 2016
	Commercial			Residential Mortgage			Mortgage Warehouse			Residential Construction			Home Equity			Consumer and Other			Total
	(Dollars in thousands)
Allowance for loan losses:
Beginning balance	$	2,440		$	591		$	460		$	4		$	93		$	46		$	3,634
Charge-offs	—			—			—			—			—			(4		)	(4		)
Recoveries	1			—			—			—			—			5			6
Provision	42			(13		)	(14		)	(1		)	(9		)	(5		)	—
Ending balance	$	2,483		$	578		$	446		$	3		$	84		$	42		$	3,636
	Three Months Ended March 31, 2015
	Commercial			Residential Mortgage			Mortgage Warehouse			Residential Construction			Home Equity			Consumer and Other			Total
	(Dollars in thousands)
Allowance for loan losses:
Beginning balance	$	2,116		$	676		$	654		$	4		$	90		$	55		$	3,595
Charge-offs	(20		)	(5		)	—			—			—			(5		)	(30		)
Recoveries	—			—			—			—			—			5			5
Provision	154			(59		)	19			1			(5		)	(5		)	105
Ending balance	$	2,250		$	612		$	673		$	5		$	85		$	50		$	3,675

Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Impairment Method

The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of the dates indicated:

	March 31, 2016
	Commercial		Residential Mortgage		Mortgage Warehouse		Residential Construction		Home Equity		Consumer and Other		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending balance attributable to loans:
Individually evaluated for impairment	$	898	$	36	$	—	$	—	$	15	$	—	$	949
Collectively evaluated for impairment	1,585		542		446		3		69		42		2,687
Acquired with deteriorated credit quality	—		—		—		—		—		—		—
Total ending allowance	$	2,483	$	578	$	446	$	3	$	84	$	42	$	3,636
Loans:
Individually evaluated for impairment	$	2,850	$	1,309	$	—	$	—	$	94	$	—	$	4,253
Collectively evaluated for impairment	155,404		38,505		122,328		2,806		14,217		3,171		336,431
Acquired with deteriorated credit quality	—		105		—		—		—		—		105
Total ending loan balance	$	158,254	$	39,919	$	122,328	$	2,806	$	14,311	$	3,171	$	340,789

	December 31, 2015
	Commercial		Residential Mortgage		Mortgage Warehouse		Residential Construction		Home Equity		Consumer and Other		Total
	(Dollars in thousands)
Allowance for loan losses:
Ending balance attributable to loans:
Individually evaluated for impairment	$	885	$	43	$	—	$	—	$	17	$	—	$	945
Collectively evaluated for impairment	1,555		548		460		4		76		46		2,689
Acquired with deteriorated credit quality	—		—		—		—		—		—		—
Total ending allowance	$	2,440	$	591	$	460	$	4	$	93	$	46	$	3,634
Loans:
Individually evaluated for impairment	$	2,920	$	1,283	$	—	$	—	$	97	$	—	$	4,300
Collectively evaluated for impairment	151,910		39,089		128,902		3,301		13,893		3,380		340,475
Acquired with deteriorated credit quality	—		106		—		—		—		—		106
Total ending loan balance	$	154,830	$	40,478	$	128,902	$	3,301	$	13,990	$	3,380	$	344,881

Information Related to Impaired Loans by Class of Loans

The following table presents information related to impaired loans by class of loans as of the dates indicated:

	March 31, 2016						December 31, 2015
	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
	(Dollars in thousands)
With no related allowance recorded:
Commercial:
Real estate	$	1,334	$	1,312	$	—	$	1,436	$	1,366	$	—
Residential mortgage	1,144		1,074		—		1,054		988		—
Home equity	79		79		—		81		80		—
Subtotal	2,557		2,465		—		2,571		2,434		—
With an allowance recorded:
Commercial:
Real estate	1,214		1,214		624		1,214		1,214		624
Construction	25		25		25		41		41		41
Land	430		299		249		431		299		220
Residential mortgage	295		235		36		355		295		43
Home equity	16		15		15		17		17		17
Subtotal	1,980		1,788		949		2,058		1,866		945
Total	$	4,537	$	4,253	$	949	$	4,629	$	4,300	$	945

Loans Individually Evaluated for Impairment

The following tables present loans individually evaluated for impairment by class of loans for the periods indicated:

	Three Months Ended March 31,
	2016				2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(Dollars in thousands)
With no related allowance recorded:
Commercial:
Real estate	$	1,350	$	19	$	2,933	$	45
Five or more family	—		—		3,692		60
Land	—		—		120		—
Residential mortgage	1,081		7		1,098		1
Home equity	80		1		—		—
Subtotal	2,511		27		7,843		106
With an allowance recorded:
Commercial:
Real estate	1,214		—		933		—
Construction	29		—		—		—
Land	299		—		1,440		—
Residential mortgage	236		5		916		2
Home equity	16		—		7		—
Subtotal	1,794		5		3,296		2
Total	$	4,305	$	32	$	11,139	$	108

Investment in Nonaccrual Loans

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans as of the dates indicated.

	Nonaccrual				Loans Past Due Over 90 Days Still Accruing
	March 31, 2016		December 31, 2015		March 31, 2016		December 31, 2015
	(Dollars in thousands)
Commercial:
Real estate	$	1,362	$	1,396	—		$	—
Construction	25		41		—		—
Land	299		299		—		—
Residential mortgage	620		590		94		—
Home equity	21		23		—		—
Total	$	2,327	$	2,349	$	94	$	—

Aging of Recorded Investment in Past Due Loans

The following tables present the aging of the recorded investment in past due loans by class of loans as of the dates indicated: 

	March 31, 2016
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	—	$	—	$	—	$	—	$	17,377	$	17,377
Real estate	401		37		1,311		1,749		94,714		96,463
Five or more family	18		—		—		18		22,470		22,488
Construction	—		—		25		25		12,174		12,199
Land	—		—		—		—		9,727		9,727
Residential mortgage	—		—		624		624		39,295		39,919
Mortgage warehouse	—		—		—		—		122,328		122,328
Residential construction:
Construction	—		—		—		—		1,939		1,939
Land	—		—		—		—		867		867
Home equity	—		—		7		7		14,304		14,311
Consumer and other	—		—		—		—		3,171		3,171
Total	$	419	$	37	$	1,967	$	2,423	$	338,366	$	340,789

	December 31, 2015
	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	—	$	—	$	—	$	—	$	18,117	$	18,117
Real estate	1,282		—		102		1,384		90,916		92,300
Five or more family	20		—		—		20		22,672		22,692
Construction	41		—		—		41		11,041		11,082
Land	—		—		—		—		10,639		10,639
Residential mortgage	176		—		495		671		39,807		40,478
Mortgage warehouse	—		—		—		—		128,902		128,902
Residential construction:
Construction	—		—		—		—		2,423		2,423
Land	—		—		—		—		878		878
Home equity	—		—		8		8		13,982		13,990
Consumer and other	—		—		—		—		3,380		3,380
Total	$	1,519	$	—	$	605	$	2,124	$	342,757	$	344,881

Loans by Class Modified as Troubled Debt Restructurings

The following tables present loans by class modified as TDRs that occurred during the periods indicated:

	Three Months Ended March 31,
	2016					2015
	Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in thousands)
Commercial:
Real Estate	—	$	—	$	—	1	$	207	$	207
Total	—	$	—	$	—	1	$	207	$	207

A loan modification is considered a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the Company grants a concession it would not otherwise consider but for the borrower’s financial difficulties. The following table presents the Company’s TDRs as of the dates indicated:

	March 31, 2016		December 31, 2015
	(Dollars in thousands)
TDRs:
Performing in accordance with modified repayment terms	$	1,699	$	1,720
Nonperforming	—		—
	$	1,699	$	1,720
Specific reserve	$	—	$	—

Risk Category of Loans by Class of Loans

The following tables present the risk category of loans by class based on the most recent analysis performed as of the dates indicated:

	March 31, 2016
	Pass		Special Mention		Substandard		Doubtful
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	16,963	$	414	$	—	$	—
Real estate	92,274		1,570		2,619		—
Five or more family	22,488		—		—		—
Construction	12,174		—		25		—
Land	9,327		101		299		—
Residential mortgage	38,904		21		994		—
Mortgage warehouse	122,328		—		—		—
Residential construction:
Construction	1,939		—		—		—
Land	867		—		—		—
Home equity	14,217		—		94		—
Consumer and other	3,171		—		—		—
Total	$	334,652	$	2,106	$	4,031	$	—

	December 31, 2015
	Pass		Special Mention		Substandard		Doubtful
	(Dollars in thousands)
Commercial:
Commercial and industrial	$	17,807	$	310	$	—	$	—
Real estate	86,548		3,075		2,677		—
Five or more family	22,692		—		—		—
Construction	11,041		—		41		—
Land	10,258		82		299		—
Residential mortgage	39,490		21		967		—
Mortgage warehouse	128,902		—		—		—
Residential construction:
Construction	2,423		—		—		—
Land	878		—		—		—
Home equity	13,893		—		97		—
Consumer and other	3,380		—		—		—
Total	$	337,312	$	3,488	$	4,081	$	—

Outstanding Balance and Carrying Amount of Purchased Loan

The outstanding balance and carrying amount of those loans was as follows:

	March 31, 2016		December 31, 2015
	(Dollars in thousands)
Residential mortgage	105		106
Carrying amount, net of allowance of $0	$	105	$	106

Accretable Yield, or Income Expected to be Collected on Purchased Loans

Accretable yield, or income expected to be collected, was as follows:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Beginning balance	$	—	$	18
Reclassification from non-accretable yield	—		—
Accretion of income	—		(11		)
Ending balance	$	—	$	7

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FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]

Valuation Methodology and Unobservable Inputs for Impaired Loans and Other Real Estate Owned

The tables below present the valuation methodology and unobservable inputs for impaired loans and other real estate owned at March 31, 2016 and December 31, 2015.

	March 31, 2016
	Valuation Methodology	Unobservable Inputs	Range of Inputs	Average of Inputs
Impaired loans:
Commercial land	Appraisals	Discounts for changes in market conditions	74%	74%
Other real estate owned, net:
Commercial real estate	Appraisals	Discounts for changes in market conditions	54%	54%

	December 31, 2015
	Valuation Methodology	Unobservable Inputs	Range of Inputs	Average of Inputs
Impaired loans:
Commercial:
Real estate	Appraisals	Discounts for changes in market conditions	8%	8%
Land	Appraisals	Discounts for changes in market conditions	10%	10%
Residential mortgage	Appraisals	Discounts for changes in market conditions	0-20%	10%
Other real estate owned, net:
Residential mortgage	Appraisals	Discounts for changes in market conditions	30%	30%

Assets and Liabilities Measured at Fair Value on Recurring basis

Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized in the following tables:

				March 31, 2016
	Carrying Value			Quoted Prices in Active Markets  for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial Assets:
Investment securities available-for-sale:
U.S. federal agency obligations	$	11,121		$	—	$	11,121		$	—
State and municipal	52,597			—		52,597			—
Mortgage-backed securities – residential	16,839			—		16,839			—
Government agency sponsored collateralized mortgage obligations	40,736			—		40,736			—
Corporate debt securities	948			—		948			—
Total investment securities available-for-sale	$	122,241		$	—	$	122,241		$	—
Loans held for sale	$	686		$	—	$	686		$	—
Derivatives – residential mortgage loan commitments	$	54		$	—	$	54		$	—
Financial Liabilities:
Derivatives – interest rate swaps	$	(1,872	)	$	—	$	(1,872	)	$	—

				December 31, 2015
	Carrying Value			Quoted Prices in Active Markets  for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial Assets:
Investment securities available-for-sale:
U.S. federal agency obligations	$	9,372		$	—	$	9,372		$	—
State and municipal	52,400			—		52,400			—
Mortgage-backed securities – residential	17,696			—		17,696			—
Government agency sponsored collateralized mortgage obligations	41,836			—		41,836			—
Corporate debt securities	939			—		939			—
Total investment securities available-for-sale	$	122,243		$	—	$	122,243		$	—
Loans held for sale	$	3,581		$	—	$	3,581		$	—
Derivatives – residential mortgage loan commitments	$	39		$	—	$	39		$	—
Financial Liabilities:
Derivatives – interest rate swaps	$	(1,265	)	$	—	$	(1,265	)	$	—

Difference Between Aggregate Fair Value and Aggregate Remaining Contractual Principal Balance Outstanding for Loans Held for Sale

The difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding for loans held for sale was:

	March 31, 2016						December 31, 2015
	Aggregate Fair Value		Difference		Contractual Principal		Aggregate Fair Value		Difference		Contractual Principal
	(Dollars in thousands)
Loans held for sale	$	686	$	22	$	664	$	3,581	$	110	$	3,471

Amount of Gains and Losses from Fair Value Changes

The following table presents the amount of gains and losses from fair value changes included in income before income taxes for financial assets carried at fair value for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
	2016			2015
	(Dollars in thousands)
Loans held for sale:
Other gains (losses)	$	(88	)	$	(11	)
Interest income	15			5
Interest expense	—			—
Total changes in fair values included in current period earnings	$	(73	)	$	(6	)

Assets Measured at Fair Value on Non-recurring Basis

Assets measured at fair value on a non-recurring basis are summarized below:

			March 31, 2016
	Carrying Value		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Impaired loans:
Commercial land	$	50	$	—	$	—	$	50
Other real estate owned, net:
Commercial real estate	41		—		—		41
Mortgage servicing rights	180		—		180		—

			December 31, 2015
	Carrying Value		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Impaired loans:
Commercial:
Real estate	$	590	$	—	$	—	$	590
Land	79		—		—		79
Residential mortgage	252		—		—		252
Other real estate owned, net:
Residential mortgage	36		—		—		36
Mortgage servicing rights	145		—		145		—

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments for the periods presented are as follows:

				March 31, 2016
	Carrying Value			Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial assets:
Cash and due from financial institutions	$	11,361		$	11,361	$	—		$	—
Interest-earning time deposits at other financial institutions	14,532			—		14,596			—
Securities available-for-sale	122,241			—		122,241			—
Loans held for sale	686			—		686			—
Loans, net	337,451			—		—			340,354
Federal Home Loan Bank stock	4,029			—		4,029			—
Accrued interest receivable	1,404			—		689			716
Financial liabilities:
Deposits	$	(361,156	)	$	—	$	(361,719	)	$	—
Federal Home Loan Bank advances	(69,132		)	—		(69,786		)	—
Subordinated debentures	(5,155		)	—		—			(5,146		)
Accrued interest payable	(182		)	—		(179		)	(3		)
Derivatives – interest rate swaps	(1,872		)	—		(1,872		)	—

				December 31, 2015
	Carrying Value			Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	(Dollars in thousands)
Financial assets:
Cash and due from financial institutions	$	18,459		$	18,459	$	—		$	—
Interest-earning time deposits at other financial institutions	13,599			—		13,641			—
Securities available-for-sale	122,243			—		122,243			—
Loans held for sale	3,581			—		3,581			—
Loans, net	341,552			—		—			344,488
Federal Home Loan Bank stock	4,029			—		4,029			—
Accrued interest receivable	1,519			—		760			759
Financial liabilities:
Deposits	$	(390,959	)	$	—	$	(390,914	)	$	—
Federal Home Loan Bank advances	(55,000		)	—		(55,197		)	—
Subordinated debentures	(5,155		)	—		—			(5,139		)
Accrued interest payable	(175		)	—		(172		)	(3		)
Derivatives – interest rate swaps	(1,265		)	—		(1,265		)	—

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DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest-Rate Swaps Designated as Cash Flow Hedges

Information related to the interest-rate swaps designated as cash flow hedges as of March 31, 2016 and December 31, 2015 were as follows:

	March 31, 2016			December 31, 2015
	(Dollars in thousands)
FHLB advance:
Notional amount	$	10,000		$	10,000
Unrealized losses	(86		)	(154		)
Fixed interest rate payable	3.69		%	3.69		%
Variable interest rate receivable (Three month LIBOR plus 0.25%)	0.87			0.57
Maturity date	July 19, 2016
FHLB advance:
Notional amount	$	10,000		$	10,000
Unrealized losses	(466		)	(276		)
Fixed interest rate payable	2.09		%	2.09		%
Variable interest rate receivable (One month LIBOR)	0.44			0.35
Maturity date	March 15, 2020
FHLB advance:
Notional amount	$	10,000		$	10,000
Unrealized losses	(541		)	(339		)
Fixed interest rate payable	2.23		%	2.23		%
Variable interest rate receivable (One month LIBOR)	0.44			0.35
Maturity date	June 15, 2020
FHLB advance:
Notional amount	$	10,000		$	10,000
Unrealized losses	(779		)	(496		)
Fixed interest rate payable	2.62		%	2.62		%
Variable interest rate payable (One month LIBOR)	0.44			—
Maturity date	March 15, 2021

Net Losses Recorded in Accumulated Other Comprehensive Income (Loss) and Income Relating to the Cash Flow Derivative

The following table presents the net gains (losses) recorded in accumulated other comprehensive income (loss) and the Consolidated Statements of Income relating to the Company’s cash flow derivative instruments for the periods indicated:

	Three Months Ended March 31,
	2016		2015
	(Dollars in thousands)
Interest rate contracts:
Net amount of gain (loss):
Recognized in OCI (Effective Portion)	$	400	$	296
Reclassified from OCI to interest income	—		—
Recognized in other non-interest income (Ineffective Portion)	—		—

Cash Flow Hedges Included in Consolidated Balance Sheets

The following table reflects the cash flow hedges included in the Consolidated Balance Sheets as of the dates indicated:

	March 31, 2016						December 31, 2015
	Notional Amount			Fair Value			Notional Amount			Fair Value
	(Dollars in thousands)
Included in other liabilities:
Interest rate swaps related to FHLB advances	$	(40,000	)	$	(1,872	)	$	(40,000	)	$	(1,265	)

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STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2016

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

Summary of Activity in Stock Option Plan

summary of the activity in the stock option plan for the period presented:

	Three Months Ended March 31, 2016
	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
	(Dollars in thousands, except per share data)
Outstanding at January 1, 2016	581,826		$	9.40	7.5 years	$	3,377
Granted	—		—
Exercised	(1,892	)	8.31
Forfeited or expired	—		—
Outstanding at March 31, 2016	579,934		$	9.40	7.3 years	$	3,689
Exercisable at end of period	256,962		$	7.79	6.3 years	$	2,048

Summary of Changes in Company's Nonvested Shares

A summary of changes in the Company’s nonvested restricted shares the was as follows for the period presented:

	Three Months Ended March 31, 2016
	Shares	Weighted-Average Grant-Date Fair Value
Nonvested at January 1, 2016	125,152	$	10.58
Granted	—	—
Vested	—	—
Forfeited	—	—
Nonvested at March 31, 2016	125,152	$	10.58

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ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Summary of Changes in Accumulated Other Comprehensive Income (Loss)

A summary of the reclassifications out of accumulated other comprehensive income (loss) for the periods indicated is as follows:

	Three Months Ended March 31,
	2016		2015
	Amount Reclassified from Accumulated Other Comprehensive  Income (Loss)		Amount Reclassified from Accumulated Other Comprehensive  Income (Loss)
	(Dollars in thousands)
Unrealized gains and losses on available-for-sale securities:
Net gains on securities	$	—	$	50
Income tax expense	—		(17		)
Net of tax	$	—	$	33

A summary of the changes in accumulated other comprehensive income (loss) by component for the periods indicated is as follows:

	Three Months Ended March 31,
	2016							2015
	Gains (Losses) on Cash Flow Hedges			Unrealized  Gains (Losses) on Available- for-Sale Securities		Total		Gains (Losses) on Cash Flow Hedges			Unrealized  Gains (Losses) on Available- for-Sale Securities			Total
	(Dollars in thousands)
Beginning balance	$	(836	)	$	1,146	$	310	$	(763	)	$	1,285		$	522
Other comprehensive income (loss) before reclassification	(400		)	857		457		(296		)	668			372
Amounts reclassified from accumulated other comprehensive income (loss)	—			—		—		—			(33		)	(33		)
Net current period other comprehensive income (loss)	(400		)	857		457		(296		)	635			339
Ending balance	$	(1,236	)	$	2,003	$	767	$	(1,059	)	$	1,920		$	861

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

A summary of the changes in accumulated other comprehensive income (loss) by component for the periods indicated is as follows:

	Three Months Ended March 31,
	2016							2015
	Gains (Losses) on Cash Flow Hedges			Unrealized  Gains (Losses) on Available- for-Sale Securities		Total		Gains (Losses) on Cash Flow Hedges			Unrealized  Gains (Losses) on Available- for-Sale Securities			Total
	(Dollars in thousands)
Beginning balance	$	(836	)	$	1,146	$	310	$	(763	)	$	1,285		$	522
Other comprehensive income (loss) before reclassification	(400		)	857		457		(296		)	668			372
Amounts reclassified from accumulated other comprehensive income (loss)	—			—		—		—			(33		)	(33		)
Net current period other comprehensive income (loss)	(400		)	857		457		(296		)	635			339
Ending balance	$	(1,236	)	$	2,003	$	767	$	(1,059	)	$	1,920		$	861

A summary of the reclassifications out of accumulated other comprehensive income (loss) for the periods indicated is as follows:

	Three Months Ended March 31,
	2016		2015
	Amount Reclassified from Accumulated Other Comprehensive  Income (Loss)		Amount Reclassified from Accumulated Other Comprehensive  Income (Loss)
	(Dollars in thousands)
Unrealized gains and losses on available-for-sale securities:
Net gains on securities	$	—	$	50
Income tax expense	—		(17		)
Net of tax	$	—	$	33

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OFFSETTING FINANCIAL ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2016

Offsetting Financial Assets And Liabilities [Abstract]

Summary of Offsetting Financial Assets and Liabilities

	March 31, 2016
	Gross Amounts of Recognized Liabilities		Gross  Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Financial Instruments			Cash  Collateral Pledged		Net Amount
	(Dollars in thousands)
Derivatives	$	1,872	$	—	$	1,872	$	(3,977	)	$	—	$	(2,105	)

	December 31, 2015
	Gross Amounts of Recognized Liabilities		Gross  Amounts Offset in the Consolidated Balance Sheet		Net Amounts of Liabilities Presented in the Consolidated Balance Sheet		Gross Amounts Not Offset in the Consolidated Balance Sheet
							Financial Instruments			Cash  Collateral Pledged		Net Amount
	(Dollars in thousands)
Derivatives	$	1,265	$	—	$	1,265	$	(3,696	)	$	—	$	(2,431	)

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Earnings Per Share - Factors Used in Earnings Per Common Share Computation (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income	$ 595	$ 952
Basic:
Net income	$ 595	$ 952
Weighted average common shares outstanding	5,579,678	5,627,687
Less: Average unallocated ESOP shares	(356,965)	(379,449)
Average shares	5,222,713	5,248,238
Basic earnings per common share (in usd per share)	$ 0.11	$ 0.18
Diluted:
Net income	$ 595	$ 952
Average shares	5,222,713	5,248,238
Add: Dilutive effects of assumed exercises of stock options	162,603	109,750
Average shares and dilutive potential common shares	5,385,316	5,357,988
Diluted earnings per common share (in usd per share)	$ 0.11	$ 0.18

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Securities Available For Sale - Amortized Cost and Fair Value of Available-for-Sale Securities and the Related Gross Unrealized Gains and Losses (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio
Amortized Cost	$ 119,208	$ 120,509
Unrealized Gains	3,306	2,635
Unrealized Losses	(273)	(901)
Fair Value	122,241	122,243
U.S. federal agency obligations [Member]
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio
Amortized Cost	11,052	9,442
Unrealized Gains	70	1
Unrealized Losses	(1)	(71)
Fair Value	11,121	9,372
State and municipal [Member]
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio
Amortized Cost	49,976	50,020
Unrealized Gains	2,621	2,397
Unrealized Losses	0	(17)
Fair Value	52,597	52,400
Mortgage-backed securities - residential [Member]
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio
Amortized Cost	16,585	17,671
Unrealized Gains	263	98
Unrealized Losses	(9)	(73)
Fair Value	16,839	17,696
Government agency sponsored collateralized mortgage obligations [Member]
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio
Amortized Cost	40,595	42,376
Unrealized Gains	352	139
Unrealized Losses	(211)	(679)
Fair Value	40,736	41,836
Corporate debt securities [Member]
Summarizes the amortized cost and fair value of the available-for-sale securities portfolio
Amortized Cost	1,000	1,000
Unrealized Gains	0	0
Unrealized Losses	(52)	(61)
Fair Value	$ 948	$ 939

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Securities Available For Sale - Fair Value of Securities with Unrealized Losses, Aggregated by Investment Category and Length of Time (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair value of securities with unrealized losses, aggregated by investment category and length of time
Continuing Unrealized Loss For Less Than 12 Months Fair Value	$ 5,086	$ 33,342
Continuing Unrealized Loss For Less Than 12 Months, Unrealized Loss	(36)	(269)
Continuing Unrealized Loss For 12 Months or More Fair Value	17,428	20,752
Continuing Unrealized Loss For 12 Months or More, Unrealized Loss	(237)	(632)
Total Fair Value	22,514	54,094
Total Unrealized Loss	(273)	(901)
U.S. federal agency obligations [Member]
Fair value of securities with unrealized losses, aggregated by investment category and length of time
Continuing Unrealized Loss For Less Than 12 Months Fair Value	1,099	8,371
Continuing Unrealized Loss For Less Than 12 Months, Unrealized Loss	(1)	(71)
Continuing Unrealized Loss For 12 Months or More Fair Value	0	0
Continuing Unrealized Loss For 12 Months or More, Unrealized Loss	0	0
Total Fair Value	1,099	8,371
Total Unrealized Loss	(1)	(71)
State and municipal [Member]
Fair value of securities with unrealized losses, aggregated by investment category and length of time
Continuing Unrealized Loss For Less Than 12 Months Fair Value		4,512
Continuing Unrealized Loss For Less Than 12 Months, Unrealized Loss		(14)
Continuing Unrealized Loss For 12 Months or More Fair Value		856
Continuing Unrealized Loss For 12 Months or More, Unrealized Loss		(3)
Total Fair Value		5,368
Total Unrealized Loss		(17)
Mortgage-backed securities - residential [Member]
Fair value of securities with unrealized losses, aggregated by investment category and length of time
Continuing Unrealized Loss For Less Than 12 Months Fair Value	900	9,259
Continuing Unrealized Loss For Less Than 12 Months, Unrealized Loss	(3)	(48)
Continuing Unrealized Loss For 12 Months or More Fair Value	813	809
Continuing Unrealized Loss For 12 Months or More, Unrealized Loss	(6)	(25)
Total Fair Value	1,713	10,068
Total Unrealized Loss	(9)	(73)
Government agency sponsored collateralized mortgage obligations [Member]
Fair value of securities with unrealized losses, aggregated by investment category and length of time
Continuing Unrealized Loss For Less Than 12 Months Fair Value	3,087	11,200
Continuing Unrealized Loss For Less Than 12 Months, Unrealized Loss	(32)	(136)
Continuing Unrealized Loss For 12 Months or More Fair Value	15,667	18,148
Continuing Unrealized Loss For 12 Months or More, Unrealized Loss	(179)	(543)
Total Fair Value	18,754	29,348
Total Unrealized Loss	(211)	(679)
Corporate debt securities [Member]
Fair value of securities with unrealized losses, aggregated by investment category and length of time
Continuing Unrealized Loss For Less Than 12 Months Fair Value	0	0
Continuing Unrealized Loss For Less Than 12 Months, Unrealized Loss	0	0
Continuing Unrealized Loss For 12 Months or More Fair Value	948	939
Continuing Unrealized Loss For 12 Months or More, Unrealized Loss	(52)	(61)
Total Fair Value	948	939
Total Unrealized Loss	$ (52)	$ (61)

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Securities Available For Sale - Sales of Securities Available for Sale (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Proceeds	$ 0	$ 10,262
Proceeds from Sale of Available-for-sale Securities	0	10,262
Gross gains	0	84
Gross losses	$ 0	$ (34)

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Securities Available For Sale - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Detail) $ in Thousands	Mar. 31, 2016 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Due in one year or less, Amortized Cost	$ 1,249
Due from more than one to five years, Amortized Cost	23,354
Due from more than five to ten years, Amortized Cost	26,625
Due after ten years, Amortized Cost	10,800
Subtotal, Amortized Cost	62,028
Mortgage-backed securities and CMOs, Amortized Cost	57,180
Total, Amortized Cost Basis	119,208
Due in one year or less, Fair Value	1,262
Due from more than one to five years, Fair Value	23,816
Due from more than five to ten years, Fair Value	27,976
Due after ten years, Fair Value	11,612
Subtotal, Fair Value	64,666
Mortgage-backed securities and CMOs, Fair Value	57,575
Total, Fair Value	$ 122,241

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Securities Available For Sale - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Securities pledged, carrying amount	$ 42.3	$ 43.1

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Loans - Loans and Allowances for Loans Losses (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Subtotal	$ 340,789	$ 344,881
Less: Net deferred loan (fees) costs	298	305
Allowance for loan losses	(3,636)	(3,634)	$ (3,634)	$ (3,675)	$ (3,595)
Loans, net	337,451	341,552
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Subtotal	158,254	154,830
Allowance for loan losses	(2,483)		(2,440)	(2,250)	(2,116)
Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Subtotal	39,919	40,478
Allowance for loan losses	(578)		(591)	(612)	(676)
Mortgage warehouse [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Subtotal	122,328	128,902
Allowance for loan losses	(446)		(460)	(673)	(654)
Residential Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Subtotal	2,806	3,301
Allowance for loan losses	(3)		(4)	(5)	(4)
Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Subtotal	14,311	13,990
Allowance for loan losses	(84)		(93)	(85)	(90)
Consumer and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Subtotal	3,171	$ 3,380
Allowance for loan losses	$ (42)		$ (46)	$ (50)	$ (55)

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Loans - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) Companies	Mar. 31, 2015 USD ($)	Sep. 30, 2014 Companies
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, including fees	$ 4,124	$ 3,601
Wire transfer fees	118	78
Loan servicing fees, net	98	13
Participated Loans, Outstanding Balance	91,000
Participated Loans, Lines of Credit Available	$ 5,000
Mortgage Warehouse [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of mortgage companies | Companies	34		29
Mortgage warehouse loans, originated	$ 1,051,049	765,001
Mortgage warehouse loans, sold	1,063,755	738,064
Loans, including fees	1,264	1,246
Mortgage warehouse loan fees	340	235
Wire transfer fees	112	73
Loan servicing fees, net	$ 84	$ 0

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Allowance for Loan Losses - by Portfolio Segment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Allowance for loan losses:
Beginning balance	$ 3,634
Charge-offs	(4)	$ (30)
Recoveries	6	5
Provisions	0	(105)
Ending balance	3,636
Commercial [Member]
Allowance for loan losses:
Charge-offs	0	20
Recoveries	1	0
Provisions	(42)	(154)
Ending balance	2,483
Mortgage [Member]
Allowance for loan losses:
Charge-offs	0	5
Recoveries	0	0
Provisions	13	59
Ending balance	578
Mortgage Warehouse [Member]
Allowance for loan losses:
Charge-offs	0	0
Recoveries	0	0
Provisions	14	(19)
Ending balance	446
Residential Construction [Member]
Allowance for loan losses:
Charge-offs	0	0
Recoveries	0	0
Provisions	1	(1)
Ending balance	3
Home Equity [Member]
Allowance for loan losses:
Charge-offs	0	0
Recoveries	0	0
Provisions	9	(5)
Ending balance	84
Consumer and Other [Member]
Allowance for loan losses:
Charge-offs	(4)	(5)
Recoveries	5	5
Provisions	5	$ (5)
Ending balance	$ 42

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Allowance for Loan Losses - Recorded Investment in Loans by Portfolio Segment and Impairment Method (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Document Period End Date	Mar. 31, 2016
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$ 949	$ 945
Collectively evaluated for impairment	2,687	2,689
Total ending allowance	3,636	3,634
Loans:
Loans individually evaluated for impairment	4,253	4,300
Loans collectively evaluated for impairment	336,431	340,475
Financing Receivable, Net	105	106
Total ending loan balance	340,789	344,881
Commercial Portfolio Segment [Member]
Ending allowance balance attributable to loans:
Individually evaluated for impairment	898	885
Collectively evaluated for impairment	1,585	1,555
Total ending allowance	2,483	2,440
Loans:
Loans individually evaluated for impairment	2,850	2,920
Loans collectively evaluated for impairment	155,404	151,910
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance		0
Total ending loan balance	158,254	154,830
Mortgage [Member]
Ending allowance balance attributable to loans:
Individually evaluated for impairment	36	43
Collectively evaluated for impairment	542	548
Total ending allowance	578	591
Loans:
Loans individually evaluated for impairment	1,309	1,283
Loans collectively evaluated for impairment	38,505	39,089
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance	105	106
Total ending loan balance	39,919	40,478
Mortgage Warehouse [Member]
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	446	460
Total ending allowance	446	460
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	122,328	128,902
Total ending loan balance	122,328	128,902
Residential Construction [Member]
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	3	4
Total ending allowance	3	4
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	2,806	3,301
Total ending loan balance	2,806	3,301
Home Equity [Member]
Ending allowance balance attributable to loans:
Individually evaluated for impairment	15	17
Collectively evaluated for impairment	69	76
Total ending allowance	84	93
Loans:
Loans individually evaluated for impairment	94	97
Loans collectively evaluated for impairment	14,217	13,893
Total ending loan balance	14,311	13,990
Consumer and Other [Member]
Ending allowance balance attributable to loans:
Individually evaluated for impairment	0	0
Collectively evaluated for impairment	42	46
Total ending allowance	42	46
Loans:
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	3,171	3,380
Total ending loan balance	3,171	3,380
Mortgage Warehouse [Member]
Ending allowance balance attributable to loans:
Total ending allowance	0	0
Loans:
Financing Receivable, Net	0	0
totalloansacquiredwithdeterioratedcreditquality [Member]
Ending allowance balance attributable to loans:
Total ending allowance	0	0
Consumer and Other [Member]
Ending allowance balance attributable to loans:
Total ending allowance	0	0
Loans:
Financing Receivable, Net	0	0
Home Equity [Member]
Ending allowance balance attributable to loans:
Total ending allowance	0	0
Loans:
Financing Receivable, Net	0	0
Residential Construction [Member]
Ending allowance balance attributable to loans:
Total ending allowance	0	0
Loans:
Financing Receivable, Net	0	0
Mortgage [Member]
Ending allowance balance attributable to loans:
Total ending allowance	0	0
Commercial Portfolio Segment [Member]
Ending allowance balance attributable to loans:
Total ending allowance	0	$ 0
Loans:
Financing Receivable, Net	$ 0

XML

Allowance for Loan Losses - Information Related to Impaired Loans by Class of Loans (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Document Period End Date	Mar. 31, 2016
Information related to impaired loans by class of loans
With no related allowance recorded, Unpaid Principal Balance	$ 2,557	$ 2,571
With an allowance recorded, Unpaid Principal Balance	1,980	2,058
Total, Unpaid Principal Balance	4,537	4,629
With no related allowance recorded, Recorded Investment	2,465	2,434
With an allowance recorded, Recorded Investment	1,788	1,866
Total, Recorded Investment	4,253	4,300
With no related allowance recorded, Allowance For Loan Losses Allocated	0	0
With an allowance recorded, Allowance For Loan Losses Allocated	949	945
Total, Allowance For Loan Losses Allocated	949	945
Commercial: Real estate [Member]
Information related to impaired loans by class of loans
With no related allowance recorded, Unpaid Principal Balance	1,334	1,436
With an allowance recorded, Unpaid Principal Balance	1,214	1,214
With no related allowance recorded, Recorded Investment	1,312	1,366
With an allowance recorded, Recorded Investment	1,214	1,214
With no related allowance recorded, Allowance For Loan Losses Allocated	0	0
With an allowance recorded, Allowance For Loan Losses Allocated	624	624
Commercial: Land [Member]
Information related to impaired loans by class of loans
With an allowance recorded, Unpaid Principal Balance	430	431
With an allowance recorded, Recorded Investment	299	299
With an allowance recorded, Allowance For Loan Losses Allocated	249	220
Mortgage [Member]
Information related to impaired loans by class of loans
With no related allowance recorded, Unpaid Principal Balance	1,144	1,054
With an allowance recorded, Unpaid Principal Balance	295	355
With no related allowance recorded, Recorded Investment	1,074	988
With an allowance recorded, Recorded Investment	235	295
With no related allowance recorded, Allowance For Loan Losses Allocated	0	0
With an allowance recorded, Allowance For Loan Losses Allocated	36	43
Home equity [Member]
Information related to impaired loans by class of loans
With no related allowance recorded, Unpaid Principal Balance	79	81
With an allowance recorded, Unpaid Principal Balance	16	17
With no related allowance recorded, Recorded Investment	79	80
With an allowance recorded, Recorded Investment	15	17
With no related allowance recorded, Allowance For Loan Losses Allocated	0	0
With an allowance recorded, Allowance For Loan Losses Allocated	$ 15	$ 17

XML

Allowance for Loan Losses - Loans Individually Evaluated for Impairment (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Financing Receivable, Impaired [Line Items]
Document Fiscal Year Focus	2016
Information related to impaired loans by class of loans
With no related allowance recorded, Average Recorded Investment	$ 2,511	$ 7,843
With an allowance recorded, Average Recorded Investment	1,794	3,296
Total, Average Recorded Investment	4,305	11,139
With no related allowance recorded, Interest Income Recognized	27	106
With an allowance recorded, Interest Income Recognized	5	2
Total, Interest Income Recognized	32	108
Commercial: Real estate [Member]
Information related to impaired loans by class of loans
With no related allowance recorded, Average Recorded Investment	1,350	2,933
With an allowance recorded, Average Recorded Investment	1,214	933
With no related allowance recorded, Interest Income Recognized	19	45
With an allowance recorded, Interest Income Recognized	0	0
Commercial Real Estate And Multi Family Portfolio Segment [Member]
Information related to impaired loans by class of loans
With no related allowance recorded, Average Recorded Investment	0	3,692
With no related allowance recorded, Interest Income Recognized	0	60
Commercial: Land [Member]
Information related to impaired loans by class of loans
With no related allowance recorded, Average Recorded Investment	0	120
With an allowance recorded, Average Recorded Investment	299	1,440
With no related allowance recorded, Interest Income Recognized	0	0
With an allowance recorded, Interest Income Recognized	0	0
Mortgage [Member]
Information related to impaired loans by class of loans
With no related allowance recorded, Average Recorded Investment	1,081	1,098
With an allowance recorded, Average Recorded Investment	236	916
With no related allowance recorded, Interest Income Recognized	7	1
With an allowance recorded, Interest Income Recognized	5	2
Home equity [Member]
Information related to impaired loans by class of loans
With no related allowance recorded, Average Recorded Investment	80	0
With an allowance recorded, Average Recorded Investment	16	7
With no related allowance recorded, Interest Income Recognized	1	0
With an allowance recorded, Interest Income Recognized	$ 0	$ 0

XML

Allowance for Loan Losses - Investment in Nonaccrual Loans (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Investment in nonaccrual loans and loans past due
Nonaccrual	$ 2,327	$ 2,349
Loans Past Due Over 90 Days Still Accruing	94	0
Commercial: Real estate [Member]
Investment in nonaccrual loans and loans past due
Nonaccrual	1,362	1,396
Loans Past Due Over 90 Days Still Accruing	0	0
Commercial Construction [Member]
Investment in nonaccrual loans and loans past due
Nonaccrual	25	41
Loans Past Due Over 90 Days Still Accruing	0	0
Commercial: Land [Member]
Investment in nonaccrual loans and loans past due
Nonaccrual	299	299
Loans Past Due Over 90 Days Still Accruing	0	0
Mortgage [Member]
Investment in nonaccrual loans and loans past due
Nonaccrual	620	590
Loans Past Due Over 90 Days Still Accruing	94	0
Home equity [Member]
Investment in nonaccrual loans and loans past due
Nonaccrual	21	23
Loans Past Due Over 90 Days Still Accruing	$ 0	$ 0

XML

Allowance for Loan Losses - Aging of Recorded Investment in Past Due Loans (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Document Period End Date	Mar. 31, 2016
Aging of the recorded investment in past due loans
Total Past Due	$ 2,423	$ 2,124
Current	338,366	342,757
Total ending loan balance	340,789	344,881
Commercial : Commercial and other [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Current	17,377	18,117
Total ending loan balance	17,377	18,117
Commercial: Real estate [Member]
Aging of the recorded investment in past due loans
Total Past Due	1,749	1,384
Current	94,714	90,916
Total ending loan balance	96,463	92,300
Commercial: Five or more family [Member]
Aging of the recorded investment in past due loans
Total Past Due	18	20
Current	22,470	22,672
Total ending loan balance	22,488	22,692
Commercial: Construction [Member]
Aging of the recorded investment in past due loans
Total Past Due	25	41
Current	12,174	11,041
Total ending loan balance	12,199	11,082
Commercial: Land [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Current	9,727	10,639
Total ending loan balance	9,727	10,639
Mortgage [Member]
Aging of the recorded investment in past due loans
Total Past Due	624	671
Current	39,295	39,807
Total ending loan balance	39,919	40,478
Mortgage warehouse [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Current	122,328	128,902
Total ending loan balance	122,328	128,902
Residential Construction: Construction [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Current	1,939	2,423
Total ending loan balance	1,939	2,423
Residential Construction: Land [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Current	867	878
Total ending loan balance	867	878
Home equity [Member]
Aging of the recorded investment in past due loans
Total Past Due	7	8
Current	14,304	13,982
Total ending loan balance	14,311	13,990
Consumer and Other [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Current	3,171	3,380
Total ending loan balance	3,171	3,380
Financing Receivables, 30 to 59 Days Past Due [Member]
Aging of the recorded investment in past due loans
Total Past Due	419	1,519
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial : Commercial and other [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial: Real estate [Member]
Aging of the recorded investment in past due loans
Total Past Due	401	1,282
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial: Five or more family [Member]
Aging of the recorded investment in past due loans
Total Past Due	18	20
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial: Construction [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	41
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial: Land [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Mortgage [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	176
Financing Receivables, 30 to 59 Days Past Due [Member] | Mortgage warehouse [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Construction: Construction [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Construction: Land [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Home equity [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer and Other [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member]
Aging of the recorded investment in past due loans
Total Past Due	37	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial : Commercial and other [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial: Real estate [Member]
Aging of the recorded investment in past due loans
Total Past Due	37	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial: Five or more family [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial: Construction [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial: Land [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Mortgage [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Mortgage warehouse [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Construction: Construction [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Construction: Land [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Home equity [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer and Other [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Aging of the recorded investment in past due loans
Total Past Due	1,967	605
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial : Commercial and other [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial: Real estate [Member]
Aging of the recorded investment in past due loans
Total Past Due	1,311	102
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial: Five or more family [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial: Construction [Member]
Aging of the recorded investment in past due loans
Total Past Due	25	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial: Land [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mortgage [Member]
Aging of the recorded investment in past due loans
Total Past Due	624	495
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Mortgage warehouse [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Construction: Construction [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Construction: Land [Member]
Aging of the recorded investment in past due loans
Total Past Due	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home equity [Member]
Aging of the recorded investment in past due loans
Total Past Due	7	8
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer and Other [Member]
Aging of the recorded investment in past due loans
Total Past Due	$ 0	$ 0

XML

Allowance for Loan Losses - Loans by Class Modified as TDRs (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) Contract loan	Mar. 31, 2015 USD ($) Contract loan	Dec. 31, 2014 USD ($)	Dec. 31, 2015 USD ($)
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | Contract	0	0
Allowance For Loan Losses Reversed	$ 0	$ 0
Document Fiscal Year Focus	2016
Number of Loans | loan	0	1
Pre-Modification Outstanding Recorded Investment	$ 0	$ 207
Post-Modification Outstanding Recorded Investment	$ 0	$ 207
Commercial: Real estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | loan	0	1
Pre-Modification Outstanding Recorded Investment	$ 0	$ 207
Post-Modification Outstanding Recorded Investment	0	$ 207
Nonperforming Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
Pre-Modification Outstanding Recorded Investment	0		$ 0
Performing Financing Receivable [Member]
Financing Receivable, Modifications [Line Items]
Pre-Modification Outstanding Recorded Investment	1,699		1,720
Troubled Debt Restructurings [Member]
Financing Receivable, Modifications [Line Items]
Pre-Modification Outstanding Recorded Investment	1,699		$ 1,720
Specific Reserves Loan Term Modified	$ 0			$ 0

XML

Allowance for Loan Losses - Risk Category of Loans by Class of Loans (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Recent analysis performed for risk category of loans
Recorded investment in loans	$ 105	$ 106
Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance	105	106
Pass [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	334,652	337,312
Pass [Member] | Residential Construction: Construction [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	1,939	2,423
Pass [Member] | Commercial : Commercial and other [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	16,963	17,807
Pass [Member] | Commercial: Five or more family [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	92,274	86,548
Pass [Member] | Commercial Real Estate And Multi Family Portfolio Segment [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	22,488	22,692
Pass [Member] | Commercial: Land [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	9,327	10,258
Pass [Member] | Commercial: Construction [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	12,174	11,041
Pass [Member] | Mortgage [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	38,904	39,490
Pass [Member] | Mortgage Warehouse [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	122,328	128,902
Pass [Member] | Residential Construction: Land [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	867	878
Pass [Member] | Home Equity [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	14,217	13,893
Pass [Member] | Consumer and other [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	3,171	3,380
Special Mention [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	2,106	3,488
Special Mention [Member] | Residential Construction: Construction [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Special Mention [Member] | Commercial : Commercial and other [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	414	310
Special Mention [Member] | Commercial: Five or more family [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	1,570	3,075
Special Mention [Member] | Commercial Real Estate And Multi Family Portfolio Segment [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Special Mention [Member] | Commercial: Land [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	101	82
Special Mention [Member] | Commercial: Construction [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Special Mention [Member] | Mortgage [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	21	21
Special Mention [Member] | Mortgage Warehouse [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Special Mention [Member] | Residential Construction: Land [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Special Mention [Member] | Home Equity [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Special Mention [Member] | Consumer and other [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Substandard [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	4,031	4,081
Substandard [Member] | Residential Construction: Construction [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Substandard [Member] | Commercial : Commercial and other [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Substandard [Member] | Commercial: Five or more family [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	2,619	2,677
Substandard [Member] | Commercial Real Estate And Multi Family Portfolio Segment [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Substandard [Member] | Commercial: Land [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	299	299
Substandard [Member] | Commercial: Construction [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	25	41
Substandard [Member] | Mortgage [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	994	967
Substandard [Member] | Mortgage Warehouse [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Substandard [Member] | Residential Construction: Land [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Substandard [Member] | Home Equity [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	94	97
Substandard [Member] | Consumer and other [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Doubtful [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Doubtful [Member] | Residential Construction: Construction [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Doubtful [Member] | Commercial : Commercial and other [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Doubtful [Member] | Commercial: Five or more family [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Doubtful [Member] | Commercial Real Estate And Multi Family Portfolio Segment [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Doubtful [Member] | Commercial: Land [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Doubtful [Member] | Commercial: Construction [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Doubtful [Member] | Mortgage [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Doubtful [Member] | Mortgage Warehouse [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Doubtful [Member] | Residential Construction: Land [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Doubtful [Member] | Home Equity [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	0	0
Doubtful [Member] | Consumer and other [Member]
Recent analysis performed for risk category of loans
Recorded investment in loans	$ 0	$ 0

XML

Allowance for Loan Losses - Outstanding Balance and Carrying Amount of Purchased Loans (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Outstanding balance and carrying amount of purchased loans
Carrying amount, net of allowance of $0	$ 105	$ 106
Mortgage [Member]
Outstanding balance and carrying amount of purchased loans
Outstanding balance	$ 105	$ 106

XML

Allowance for Loan Losses - Accretable Yield, or Income Expected to be Collected on Purchased Loans (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Beginning balance	$ 0	$ 18
Reclassification from non-accretable yield	0	0
Accretion of income	0	(11)
Ending balance	$ 0	$ 7

XML

Allowance for Loan Losses - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016 USD ($) Contract	Mar. 31, 2015 USD ($) Contract	Dec. 31, 2014 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding balance of loans modified as TDRs	$ 0	$ 207,000
Troubled debt restructurings previously disclosed resulted in charge offs	$ 0	$ 0
Number of troubled debt restructurings defaulted | Contract	0	0
Allowance for loan losses reversed	$ 0	$ 0
Performing Financial Instruments [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Outstanding balance of loans modified as TDRs	$ 1,699,000		$ 1,720,000
Loan payment default term	90 days

XML

Fair Value - Valuation Methodology and Unobservable Inputs for Impaired Loans and Other Real Estate Owned (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2015
Impaired loans [Member] | Commercial: Real estate [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Valuation Methodology		Appraisals
Fair Value, Average of Inputs				8.00%
Impaired loans [Member] | Commercial: Land [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Valuation Methodology	Appraisals	Appraisals
Fair Value, Average of Inputs	74.00%			10.00%
Impaired loans [Member] | Mortgage [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Valuation Methodology		Appraisals
Fair Value, Average of Inputs				10.00%
Other real estate owned, net [Member] | Commercial: Real estate [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Valuation Methodology	Appraisals
Fair Value, Average of Inputs	54.00%
Other real estate owned, net [Member] | Mortgage [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Valuation Methodology			Appraisals
Fair Value, Average of Inputs				30.00%
Minimum [Member] | Impaired loans [Member] | Commercial: Real estate [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	0.00%			8.00%
Minimum [Member] | Impaired loans [Member] | Commercial: Land [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	74.00%			10.00%
Minimum [Member] | Impaired loans [Member] | Mortgage [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	0.00%			0.00%
Minimum [Member] | Impaired loans [Member] | Home equity [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	0.00%
Minimum [Member] | Other real estate owned, net [Member] | Commercial: Real estate [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	54.00%			0.00%
Minimum [Member] | Other real estate owned, net [Member] | Commercial: Land [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	0.00%			0.00%
Minimum [Member] | Other real estate owned, net [Member] | Mortgage [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	0.00%			30.00%
Maximum [Member] | Impaired loans [Member] | Commercial: Real estate [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	0.00%			8.00%
Maximum [Member] | Impaired loans [Member] | Commercial: Land [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	74.00%			10.00%
Maximum [Member] | Impaired loans [Member] | Mortgage [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	0.00%			20.00%
Maximum [Member] | Impaired loans [Member] | Home equity [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	0.00%
Maximum [Member] | Other real estate owned, net [Member] | Commercial: Real estate [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	54.00%			0.00%
Maximum [Member] | Other real estate owned, net [Member] | Commercial: Land [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	0.00%			0.00%
Maximum [Member] | Other real estate owned, net [Member] | Mortgage [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Fair Value, Range of Inputs	0.00%			30.00%

XML

Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2014	Dec. 31, 2015
Financial Assets
Securities available-for-sale	$ 122,241		$ 122,243
Loans held for sale	686		3,581
Loans Receivable Held-for-sale, Net	686		3,581
Derivatives - residential mortgage loan commitments	54		39
Financial Liabilities
Derivatives - interest rate swaps	(1,872)		(1,265)
U.S. federal agency obligations [Member]
Financial Assets
Securities available-for-sale	11,121		9,372
State and municipal [Member]
Financial Assets
Securities available-for-sale	52,597		52,400
Mortgage-backed securities - residential [Member]
Financial Assets
Securities available-for-sale	16,839		17,696
Government agency sponsored collateralized mortgage obligations [Member]
Financial Assets
Securities available-for-sale	40,736		41,836
Corporate debt securities [Member]
Financial Assets
Securities available-for-sale	948		939
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial Assets
Securities available-for-sale	0		0
Loans held for sale	0		0
Derivatives - residential mortgage loan commitments	0		0
Financial Liabilities
Derivatives - interest rate swaps	0		0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. federal agency obligations [Member]
Financial Assets
Securities available-for-sale	0		0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | State and municipal [Member]
Financial Assets
Securities available-for-sale	0		0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage-backed securities - residential [Member]
Financial Assets
Securities available-for-sale	0		0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government agency sponsored collateralized mortgage obligations [Member]
Financial Assets
Securities available-for-sale	0		0
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate debt securities [Member]
Financial Assets
Securities available-for-sale	0		0
Significant Other Observable Inputs (Level 2) [Member]
Financial Assets
Securities available-for-sale	122,241		122,243
Loans held for sale			3,581
Derivatives - residential mortgage loan commitments	54		39
Financial Liabilities
Derivatives - interest rate swaps	(1,872)		(1,265)
Significant Other Observable Inputs (Level 2) [Member] | U.S. federal agency obligations [Member]
Financial Assets
Securities available-for-sale	11,121		9,372
Significant Other Observable Inputs (Level 2) [Member] | State and municipal [Member]
Financial Assets
Securities available-for-sale	52,597		52,400
Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed securities - residential [Member]
Financial Assets
Securities available-for-sale	16,839		17,696
Significant Other Observable Inputs (Level 2) [Member] | Government agency sponsored collateralized mortgage obligations [Member]
Financial Assets
Securities available-for-sale	40,736		41,836
Significant Other Observable Inputs (Level 2) [Member] | Corporate debt securities [Member]
Financial Assets
Securities available-for-sale	948		939
Significant Unobservable Inputs (Level 3) [Member]
Financial Assets
Securities available-for-sale	0		0
Loans held for sale	0		0
Derivatives - residential mortgage loan commitments	0		0
Financial Liabilities
Derivatives - interest rate swaps	0		0
Significant Unobservable Inputs (Level 3) [Member] | U.S. federal agency obligations [Member]
Financial Assets
Securities available-for-sale	0		0
Significant Unobservable Inputs (Level 3) [Member] | State and municipal [Member]
Financial Assets
Securities available-for-sale	0		0
Significant Unobservable Inputs (Level 3) [Member] | Mortgage-backed securities - residential [Member]
Financial Assets
Securities available-for-sale	0		0
Significant Unobservable Inputs (Level 3) [Member] | Government agency sponsored collateralized mortgage obligations [Member]
Financial Assets
Securities available-for-sale	0		0
Significant Unobservable Inputs (Level 3) [Member] | Corporate debt securities [Member]
Financial Assets
Securities available-for-sale	$ 0		$ 0
Mortgage Servicing Rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Inputs, Discount Rate	10.00%	10.00%
Financial Liabilities
Fair Value Inputs, Probability of Default	0.50%	0.50%
Minimum [Member] | Mortgage Servicing Rights [Member]
Financial Liabilities
Fair Value Inputs, Prepayment Rate	8.00%	6.90%
Maximum [Member] | Mortgage Servicing Rights [Member]
Financial Liabilities
Fair Value Inputs, Prepayment Rate	20.90%	22.10%

XML

Fair Value - Difference Between the Aggregate Fair Value and the Aggregate Remaining Contractual Principal Balance Outstanding for Loans Held for Sale (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	$ 686		$ 3,581
Contractual Principal	664		3,471
Aggregate Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	686		3,581
Difference [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans held for sale	22		$ 110
Loans Held For Sale Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Changes In Fair Values Included In Current Period	$ (73)	$ (6)

XML

Fair Value - Amount of Gains and Losses from Fair Value Changes (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Amount of gains and losses from fair value changes
Interest Expense	$ (696)	$ (605)
Loans Held For Sale Fair Value [Member]
Amount of gains and losses from fair value changes
Other Gains (Losses)	(88)	(11)
Interest Income	15	5
Interest Expense	0	0
Total Changes in Fair Values Included in Current Period Earnings	$ (73)	$ (6)

XML

Fair Value - Assets Measured at Fair Value on a Non-Recurring Basis (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Sep. 30, 2014	Sep. 30, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Loans Fair Value Measured Using Fair Value Of Collateral Dependent Loans	$ 299,000				$ 1,800,000
Impaired Financing Receivable, Related Allowance	249,000			$ 767,000
Additional Provision For Loan Losses Impaired Loan	29,000	$ 261,000
Real Estate Acquired Through Foreclosure	41,000
Real Estate Owned, Valuation Allowance, Amounts Applied	30,000
Mortgage Loans on Real Estate, Carrying Amount of Mortgages	180,000			196,000
Mortgage Servicing Rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Outstanding Balance Of Other Real Estate Owned	274,000			301,000
Real Estate Owned, Valuation Allowance, Component	94,000			$ 105,000
Fees and Commissions, Mortgage Banking and Servicing	8,000	$ 14,000
Impaired loans [Member] | Commercial: Real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis			$ 590,000
Impaired loans [Member] | Commercial: Land [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis	50,000		79,000
Impaired loans [Member] | Mortgage [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis			252,000
Impaired loans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial: Real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis			0
Impaired loans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial: Land [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis	0		0
Impaired loans [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial: Real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis			0
Impaired loans [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial: Land [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis	0		0
Impaired loans [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial: Real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis			590,000
Impaired loans [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial: Land [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis	50,000		79,000
Impaired loans [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis			252,000
Other real estate owned, net [Member] | Commercial: Real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis	41,000
Other real estate owned, net [Member] | Mortgage [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis			36,000
Other real estate owned, net [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial: Real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis	0
Other real estate owned, net [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commercial: Land [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis			0
Other real estate owned, net [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial: Real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis	0
Other real estate owned, net [Member] | Significant Other Observable Inputs (Level 2) [Member] | Commercial: Land [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis			0
Other real estate owned, net [Member] | Significant Unobservable Inputs (Level 3) [Member] | Commercial: Real estate [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis	41,000
Other real estate owned, net [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mortgage [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis			36,000
Mortgage Servicing Rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis	180,000		145,000
Mortgage Servicing Rights [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis	0		0
Mortgage Servicing Rights [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis	180,000		145,000
Mortgage Servicing Rights [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non-recurring basis	$ 0		$ 0

XML

Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2014	Dec. 31, 2013
Financial assets
Cash and due from financial institutions	$ 11,361	$ 18,459	$ 11,221	$ 8,698
Interest-earning time deposits in other financial institutions	14,532	13,599
Securities available-for-sale	122,241	122,243
Federal Home Loan Bank stock, at cost (restricted)	4,029	4,029
Loans Receivable Held-for-sale, Net	686	3,581
Loans held for sale	686	3,581
Loans and Leases Receivable, Net Amount	337,451	341,552
Financial liabilities
Subordinated debentures	(5,155)	(5,155)
Derivatives - interest rate swaps	(1,872)	(1,265)
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets
Securities available-for-sale	0	0
Loans held for sale	0	0
Financial liabilities
Derivatives - interest rate swaps	0	0
Significant Other Observable Inputs (Level 2) [Member]
Financial assets
Securities available-for-sale	122,241	122,243
Loans held for sale		3,581
Financial liabilities
Derivatives - interest rate swaps	(1,872)	(1,265)
Significant Unobservable Inputs (Level 3) [Member]
Financial assets
Securities available-for-sale	0	0
Loans held for sale	0	0
Financial liabilities
Derivatives - interest rate swaps	0	0
Carrying Value [Member]
Financial assets
Cash and due from financial institutions		18,459
Interest-earning time deposits at other financial institutions		13,599
Securities available-for-sale		122,243
Loans held for sale		3,581
Loans, net		341,552
Accrued interest receivable	1,404	1,519
Financial liabilities
Deposits	(361,156)	(390,959)
Federal Home Loan Bank advances	(69,132)	(55,000)
Subordinated debentures	(5,155)	(5,155)
Short-term Debt, Fair Value	0
Accrued interest payable	(182)	(175)
Derivatives - interest rate swaps	(1,872)	(1,265)
Aggregate Fair Value [Member]
Financial assets
Loans held for sale	686	3,581
Aggregate Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets
Cash and due from financial institutions	11,361	18,459
Interest-earning time deposits at other financial institutions	0	0
Securities available-for-sale	0	0
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	0	0
Loans held for sale	0	0
Loans, net	0	0
Accrued interest receivable	0	0
Financial liabilities
Deposits	0	0
Federal Home Loan Bank advances	0	0
Subordinated debentures	0	0
Short-term Debt, Fair Value	0
Accrued interest payable	0	0
Derivatives - interest rate swaps	0	0
Aggregate Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member]
Financial assets
Cash and due from financial institutions	0	0
Interest-earning time deposits at other financial institutions	14,596	13,641
Securities available-for-sale	122,241	122,243
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	4,029	4,029
Loans held for sale	686	3,581
Loans, net	0	0
Accrued interest receivable	689	760
Financial liabilities
Deposits	(361,719)	(390,914)
Federal Home Loan Bank advances	(69,786)	(55,197)
Subordinated debentures	0	0
Short-term Debt, Fair Value	0
Accrued interest payable	(179)	(172)
Derivatives - interest rate swaps	(1,872)	(1,265)
Aggregate Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member]
Financial assets
Cash and due from financial institutions	0	0
Interest-earning time deposits at other financial institutions	0	0
Securities available-for-sale	0	0
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	0	0
Loans held for sale	0	0
Loans, net	340,354	344,488
Accrued interest receivable	716	759
Financial liabilities
Deposits	0	0
Federal Home Loan Bank advances	0	0
Subordinated debentures	(5,146)	(5,139)
Short-term Debt, Fair Value	0
Accrued interest payable	(3)	(3)
Derivatives - interest rate swaps	$ 0	$ 0

XML

Fair Value - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Sep. 30, 2014	Sep. 30, 2013
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Loans held for sale, fair value	$ 686,000			$ 3,581,000
Loans held for sale, outstanding balance	664,000			3,471,000
Impaired loans, collateral dependent	299,000					$ 1,800,000
Impaired Financing Receivable, Related Allowance	249,000				$ 767,000
Additional provision for loan losses impaired loan	29,000	$ 261,000
Other real estate owned, carrying value	41,000
Carrying amount, mortgage servicing rights	180,000				196,000
Difference [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Loans held for sale, fair value	$ 22,000			$ 110,000
Mortgage servicing rights [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Discount rate	10.00%		10.00%
Default rate approximately	0.50%		0.50%
Outstanding Balance Of Other Real Estate Owned	$ 274,000				301,000
Valuation allowance	94,000				$ 105,000
Charge on mortgage servicing rights	$ 8,000	$ 14,000
Mortgage servicing rights [Member] | Minimum [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Prepayment rate	8.00%		6.90%
Mortgage servicing rights [Member] | Maximum [Member]
Valuation methodology and unobservable inputs for impaired loans and other real estate owned
Prepayment rate	20.90%		22.10%

XML

Derivatives - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Interest expense	$ 171,000	$ 127,000
Security Collateral Held in Safekeeping by Bank of New York [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Cash and securities fair value	4,000,000		$ 3,700,000
Interest Rate Swaps Designated as Cash Flow Hedges [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	40,000,000
Federal Home Loan Banks Advance Three [Member] [Domain]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	$ 10,000,000		$ 10,000,000
Derivative, Fixed Interest Rate	2.085%		2.09%

XML

Derivatives - Interest-Rate Swaps Designated as Cash Flow Hedges (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Derivative [Line Items]
Interest Expense, Trading Liabilities	$ 171,000	$ 127,000
Federal Home Loan Banks Advance Four [Member] [Domain]
Interest-rate swaps designated as cash flow hedges
Notional amount	$ 10,000,000		$ 10,000,000
Fixed interest rate payable	2.23%		2.23%
Unrealized losses	$ (541,000)		$ (339,000)
Maturity date	Jun. 15, 2020
Federal Home Loan Banks Advance Four [Member] [Domain] | One Month London Interbank Offered Rate [Member] [Domain]
Interest-rate swaps designated as cash flow hedges
Variable interest rate receivable	0.44%		0.35%
FHLB advance (Sep 20, 2015) [Member] | Three month LIBOR plus 0.22% [Member] | LIBOR [Member]
Derivative [Line Items]
Basis spread on variable rate	0.00%
FHLB advance (Jul 19, 2016) [Member]
Interest-rate swaps designated as cash flow hedges
Notional amount	$ 10,000,000		$ 10,000,000
Fixed interest rate payable	3.69%		3.69%
Unrealized losses	$ (86,000)		$ (154,000)
Maturity date	Jul. 19, 2016
FHLB advance (Jul 19, 2016) [Member] | Three Month London Interbank Offered Rate Plus Zero Point Twenty Five Percentage [Member]
Interest-rate swaps designated as cash flow hedges
Variable interest rate receivable	0.87%		0.57%
FHLB advance (Jul 19, 2016) [Member] | Three Month London Interbank Offered Rate Plus Zero Point Twenty Five Percentage [Member] | LIBOR [Member]
Derivative [Line Items]
Basis spread on variable rate	0.25%
Federal Home Loan Banks Advance Three [Member] [Domain]
Interest-rate swaps designated as cash flow hedges
Notional amount	$ 10,000,000		$ 10,000,000
Fixed interest rate payable	2.085%		2.09%
Unrealized losses	$ (466,000)		$ (276,000)
Maturity date	Mar. 15, 2020
Federal Home Loan Banks Advance Three [Member] [Domain] | Three Month London Interbank Offered Rate Plus Zero Point Twenty Five Percentage [Member]
Interest-rate swaps designated as cash flow hedges
Variable interest rate receivable	0.44%		0.35%
Federal Home Loan Banks Advance Five [Member] [Domain]
Interest-rate swaps designated as cash flow hedges
Notional amount	$ 10,000,000		$ 10,000,000
Fixed interest rate payable	2.62%		2.62%
Unrealized losses	$ (779,000)		$ (496,000)
Maturity date	Mar. 15, 2021
Federal Home Loan Banks Advance Five [Member] [Domain] | One Month London Interbank Offered Rate [Member] [Domain]
Interest-rate swaps designated as cash flow hedges
Variable interest rate receivable	0.44%		0.00%

XML

Derivatives - Net Losses Recorded in Accumulated Other Comprehensive Income (Loss) and Income Relating to the Cash Flow Derivative (Detail) - Interest rate contracts [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net losses recorded in accumulated other comprehensive income (loss) and income relating to the cash flow derivative
Net amount of gain (loss) recognized in OCI (Effective Portion)	$ 400	$ 296
Net amount of gain (loss) reclassified from OCI to interest income	0	0
Net amount of gain (loss) recognized in other non interest income (Ineffective Portion)	$ 0	$ 0

XML

Derivatives - Cash Flow Hedges Included in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Included in other liabilities:
Fair Value	$ (1,872)	$ (1,265)
Interest Rate Swaps Designated as Cash Flow Hedges [Member]
Included in other liabilities:
Notional Amount	(40,000)
FHLB advances [Member] | Interest Rate Swaps Designated as Cash Flow Hedges [Member]
Included in other liabilities:
Notional Amount	(40,000)	(40,000)
Fair Value	(1,872)	(1,265)
Securities Pledged as Collateral [Member]
Derivatives, Fair Value [Line Items]
Securities Held as Collateral, at Fair Value	$ 4,000	$ 3,700

XML

Stock-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014	Oct. 14, 2014	Sep. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0		332,250
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	0		126,800
Shares issued to employees and directors	135,772
Exercise of stock options (in shares)	1,892	4,472
Shares vested during the period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested	$ 649,000
Unearned ESOP Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	22,132
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	9,870
Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued to employees and directors				14,471	417,543
Total compensation cost charged against income	$ 170,000	$ 173,000
Intrinsic value of options exercised	$ 13,000
Equity Incentive Plan [Member] | Unearned ESOP Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued to employees and directors	298,245
Option awards, vesting periods	5 years
Option awards, contractual terms	10 years
Option awards, annual percentage, vesting	20.00%
Exercise of stock options (in shares)	1,892
Cash received from exercise of stock options	$ 16,000
Tax benefits realized from exercise of stock options	6,000
Unrecognized compensation cost related to nonvested stock options granted under the Plan	$ 587,000
Cost recognized over a weighted-average period, expected	3 years 3 months
Equity Incentive Plan [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued to employees and directors	119,298
Option awards, vesting periods	5 years
Option awards, annual percentage, vesting	20.00%
Unrecognized compensation cost related to nonvested stock options granted under the Plan	$ 1,100,000
Cost recognized over a weighted-average period, expected	3 years 3 months
Equity Incentive Plan - 2014 [Member] [Domain]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued to employees and directors				473,845
Equity Incentive Plan - 2014 [Member] [Domain] | Unearned ESOP Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued to employees and directors	352,544
Option awards, vesting periods	5 years
Option awards, annual percentage, vesting	20.00%

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Stock-Based Compensation - Summary of Activity in the Stock Option Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014
Options, Outstanding Shares [Rollforward]
Outstanding, Shares, beginning balance	581,826
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0		332,250
Exercised, Shares	(1,892)	(4,472)
Forfeited or expired, Shares	0
Outstanding, Shares, ending balance	579,934
Exercisable at end of period, Shares	256,962,000
Options, Weighted Average Exercise Price [Abstract]
Outstanding, Weighted Average Exercise Price, beginning balance (in usd per share)	$ 9.40
Granted, Weighted Average Exercise Price (in usd per share)	0.00
Exercised, Weighted Average Exercise Price (in usd per share)	8.31
Forfeited or expired, Weighted Average Exercise Price (in usd per share)	0.00
Outstanding, Weighted Average Exercise Price, ending balance (in usd per share)	9.40
Exercisable at end of period, Weighted Average Exercise Price (in usd per share)	$ 7,790
Options, Additional Disclosures [Abstract]
Outstanding, Weighted Average Remaining Contractual Term, beginning balance	7 years 3 months		7 years 6 months
Exercisable at end of period, Weighted Average Remaining Contractual Term	6 years 3 months
Outstanding, Aggregate Intrinsic Value, beginning balance	$ 3,377
Outstanding, Aggregate Intrinsic Value, ending balance	3,689
Exercisable at end of period, Aggregate Intrinsic Value	$ 2,048

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Stock-Based Compensation - Summary of Changes in the Company's Nonvested Shares (Detail) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2014
Nonvested Shares [Rollforward]
Nonvested, Shares, beginning balance	125,152
Granted, Shares	0	126,800
Vested, Shares	0
Forfeited, Shares	0
Nonvested, Shares, ending balance	125,152
Nonvested Shares, Weighted-Average Grant-Date Fair Value [Abstract]
Nonvested, Weighted-Average Grant-Date Fair Value, beginning balance (in usd per share)	$ 10.58
Granted, Weighted-Average Grant-Date Fair Value (in usd per share)	0.00
Vested, Weighted-Average Grant-Date Fair Value (in usd per share)	0.00
Forfeited, Weighted-Average Grant-Date Fair Value (in usd per share)	0
Nonvested, Weighted-Average Grant-Date Fair Value, ending balance (in usd per share)	$ 10.58

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Accumulated Other Comprehensive Income - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 310
Other comprehensive income (loss) before reclassification	457	$ 372
Amounts reclassified from accumulated other comprehensive income	0	(33)
Net current period other comprehensive income (loss)	457	339
Ending balance	767
Gains (Losses) on Cash Flow Hedges [Member]
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Other comprehensive income (loss) before reclassification	(400)	(296)
Amounts reclassified from accumulated other comprehensive income	0	0
Net current period other comprehensive income (loss)	(400)	(296)
Ending balance	(1,236)
Unrealized Gains (Losses) on Available- for-Sale Securities [Member]
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Other comprehensive income (loss) before reclassification	857	668
Amounts reclassified from accumulated other comprehensive income	0	(33)
Net current period other comprehensive income (loss)	857	$ 635
Ending balance	$ 2,003

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Accumulated Other Comprehensive Income - Summary of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014
Schedule of Reclassification Out Of Accumulated Other Comprehensive Income [Line Items]
Accumulated other comprehensive income, net of tax expense of $395 at March 31, 2016 and $162 at December 31, 2015	$ 767		$ 310	$ 310	$ 861	$ 522
Income tax expense	(151)	$ (156)
Total before tax	746	1,108
Net income	595	952
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	457	372
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	33
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	457	339
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Schedule of Reclassification Out Of Accumulated Other Comprehensive Income [Line Items]
Accumulated other comprehensive income, net of tax expense of $395 at March 31, 2016 and $162 at December 31, 2015	(1,236)			(836)	(1,059)	(763)
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	(400)	(296)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	0
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(400)	(296)
Unrealized Gains (Losses) on Available- for-Sale Securities [Member]
Schedule of Reclassification Out Of Accumulated Other Comprehensive Income [Line Items]
Accumulated other comprehensive income, net of tax expense of $395 at March 31, 2016 and $162 at December 31, 2015	2,003			$ 1,146	$ 1,920	$ 1,285
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax	857	668
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	0	33
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	857	635
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Available- for-Sale Securities [Member]
Schedule of Reclassification Out Of Accumulated Other Comprehensive Income [Line Items]
Net gains on securities	0	50
Income tax expense	0	(17)
Net income	$ 0	$ 33

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Offsetting Financial Assets and Liabilities - Summary of Offsetting Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Offsetting Financial Assets And Liabilities [Abstract]
Gross Amounts of Recognized Liabilities, Derivatives	$ 1,872	$ 1,265
Gross Amounts Offset in the Consolidated Balance Sheet, Derivatives	0	0
Net Amounts Liabilities Presented in the Consolidated Balance Sheet, Derivatives	1,872	1,265
Gross Amounts Not Offset in the Consolidated Balance Sheet, Financial Instruments, Derivatives	(3,977)	(3,696)
Gross Amounts Not Offset in the Consolidated Balance Sheet, Cash Collateral Pledged, Derivatives	0	0
Gross Amounts Not Offset in the Consolidated Balance Sheet, Net Amount, Derivatives	$ (2,105)	$ (2,431)

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PENDING MERGER (Details) $ / shares in Units, $ in Millions	Mar. 09, 2016 USD ($) $ / shares	Mar. 31, 2016 $ / shares	Mar. 10, 2016 $ / shares	Dec. 31, 2015 $ / shares
Business Acquisition [Line Items]
Common stock, par value (in usd per share)		$ 0.01	$ 0.01	$ 0.01
Horizon Bancorp [Member]
Business Acquisition [Line Items]
Exchange ratio			0.629
Acquisition share price (in usd per share)			$ 17.50
Percent of shares to be converted to Horizon stock			65.00%
Percent of shares to be converted to cash			35.00%
Share price	$ 24.21
Transaction value | $	$ 94.1