☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Louisiana | 72 –1020809 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Large accelerated filer ☐ | Accelerated filer ☒ | Non-accelerated filer ☐ | Small reporting company ☐ |
Part I – Financial Information | ||
Item 1. Financial Statements | ||
Item 4. Controls and Procedures. | ||
Part II – Other Information | ||
Item 1. Legal Proceedings. | ||
Item 1A. Risk Factors. | ||
Item 3. Defaults Upon Senior Securities. | ||
Item 4. Mine Safety Disclosures. | ||
Item 5. Other Information. | ||
Item 6. Exhibits. |
MidSouth Bancorp, Inc. and Subsidiaries Consolidated Balance Sheets (dollars in thousands, except share data) | ||||||||
June 30, 2016 (unaudited) | December 31, 2015 (audited) | |||||||
Assets | ||||||||
Cash and due from banks, including required reserves of $6,871 and $8,522, respectively | $ | 31,608 | $ | 37,170 | ||||
Interest-bearing deposits in banks | 65,144 | 48,331 | ||||||
Federal funds sold | 1,783 | 3,700 | ||||||
Securities available-for-sale, at fair value (cost of $312,614 at June 30, 2016 and $317,375 at December 31, 2015) | 318,239 | 318,159 | ||||||
Securities held-to-maturity (fair value of $112,273 at June 30, 2016 and $117,698 at December 31, 2015) | 109,420 | 116,792 | ||||||
Other investments | 11,036 | 11,188 | ||||||
Loans | 1,262,389 | 1,263,645 | ||||||
Allowance for loan losses | (21,378 | ) | (19,011 | ) | ||||
Loans, net | 1,241,011 | 1,244,634 | ||||||
Bank premises and equipment, net | 68,468 | 69,105 | ||||||
Accrued interest receivable | 6,485 | 6,594 | ||||||
Goodwill | 42,171 | 42,171 | ||||||
Intangibles | 5,175 | 5,728 | ||||||
Cash surrender value of life insurance | 14,167 | 13,622 | ||||||
Other real estate | 2,735 | 4,187 | ||||||
Other assets | 5,082 | 6,352 | ||||||
Total assets | $ | 1,922,524 | $ | 1,927,733 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Non-interest-bearing | $ | 383,797 | $ | 374,261 | ||||
Interest-bearing | 1,176,269 | 1,176,589 | ||||||
Total deposits | 1,560,066 | 1,550,850 | ||||||
Securities sold under agreements to repurchase | 85,786 | 85,957 | ||||||
Short-term Federal Home Loan Bank advances | — | 25,000 | ||||||
Long-term Federal Home Loan Bank advances | 25,638 | 25,851 | ||||||
Junior subordinated debentures | 22,167 | 22,167 | ||||||
Other liabilities | 10,926 | 4,771 | ||||||
Total liabilities | 1,704,583 | 1,714,596 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Series B Preferred stock, no par value; 5,000,000 shares authorized, 32,000 shares issued and outstanding at June 30, 2016 and December 31, 2015 | 32,000 | 32,000 | ||||||
Series C Preferred stock, no par value; 100,000 shares authorized, 91,100 and 91,200 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively | 9,110 | 9,120 | ||||||
Common stock, $0.10 par value; 30,000,000 shares authorized, 11,362,705 and 11,362,150 shares issued and outstanding at June 30, 2016 and December 31, 2015 | 1,136 | 1,136 | ||||||
Additional paid-in capital | 110,986 | 110,771 | ||||||
Unearned ESOP shares | (1,207 | ) | (1,093 | ) | ||||
Accumulated other comprehensive income | 3,657 | 509 | ||||||
Retained earnings | 62,259 | 60,694 | ||||||
Total shareholders’ equity | 217,941 | 213,137 | ||||||
Total liabilities and shareholders’ equity | $ | 1,922,524 | $ | 1,927,733 |
MidSouth Bancorp, Inc. and Subsidiaries Consolidated Statements of Earnings (unaudited) (in thousands, except per share data) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Interest income: | ||||||||||||||||
Loans, including fees | $ | 16,838 | $ | 18,268 | $ | 33,961 | $ | 36,322 | ||||||||
Securities and other investments: | ||||||||||||||||
Taxable | 1,940 | 1,853 | 3,976 | 3,778 | ||||||||||||
Nontaxable | 420 | 559 | 878 | 1,143 | ||||||||||||
Federal funds sold | 3 | 2 | 8 | 4 | ||||||||||||
Time and interest bearing deposits in other banks | 97 | 35 | 191 | 72 | ||||||||||||
Other investments | 90 | 81 | 178 | 160 | ||||||||||||
Total interest income | 19,388 | 20,798 | 39,192 | 41,479 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 903 | 921 | 1,810 | 1,868 | ||||||||||||
Securities sold under agreements to repurchase | 233 | 242 | 466 | 472 | ||||||||||||
Other borrowings and payables | 91 | 103 | 204 | 200 | ||||||||||||
Junior subordinated debentures | 170 | 151 | 337 | 301 | ||||||||||||
Total interest expense | 1,397 | 1,417 | 2,817 | 2,841 | ||||||||||||
Net interest income | 17,991 | 19,381 | 36,375 | 38,638 | ||||||||||||
Provision for loan losses | 2,300 | 1,100 | 5,100 | 7,100 | ||||||||||||
Net interest income after provision for loan losses | 15,691 | 18,281 | 31,275 | 31,538 | ||||||||||||
Non-interest income: | ||||||||||||||||
Service charges on deposits | 2,391 | 2,347 | 4,704 | 4,679 | ||||||||||||
Gain on sale of securities, net | 20 | 1,128 | 20 | 1,243 | ||||||||||||
ATM and debit card income | 1,668 | 1,655 | 3,277 | 3,284 | ||||||||||||
Income from death benefit on BOLI | — | 160 | — | 160 | ||||||||||||
Other charges and fees | 794 | 847 | 1,359 | 1,612 | ||||||||||||
Total non-interest income | 4,873 | 6,137 | 9,360 | 10,978 | ||||||||||||
Non-interest expenses: | ||||||||||||||||
Salaries and employee benefits | 8,182 | 8,197 | 16,172 | 16,139 | ||||||||||||
Occupancy expense | 3,667 | 3,865 | 7,264 | 7,550 | ||||||||||||
ATM and debit card expense | 792 | 693 | 1,577 | 1,356 | ||||||||||||
Data processing | 478 | 467 | 936 | 924 | ||||||||||||
FDIC insurance | 420 | 331 | 849 | 612 | ||||||||||||
Legal and professional fees | 436 | 382 | 819 | 727 | ||||||||||||
Other | 3,066 | 3,041 | 6,183 | 5,829 | ||||||||||||
Total non-interest expenses | 17,041 | 16,976 | 33,800 | 33,137 | ||||||||||||
Income before income taxes | 3,523 | 7,442 | 6,835 | 9,379 | ||||||||||||
Income tax expense | 1,030 | 2,343 | 1,993 | 2,789 | ||||||||||||
Net earnings | 2,493 | 5,099 | 4,842 | 6,590 | ||||||||||||
Dividends on preferred stock | 811 | 172 | 1,238 | 345 | ||||||||||||
Net earnings available to common shareholders | $ | 1,682 | $ | 4,927 | $ | 3,604 | $ | 6,245 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.15 | $ | 0.43 | $ | 0.32 | $ | 0.55 | ||||||||
Diluted | $ | 0.15 | $ | 0.42 | $ | 0.32 | $ | 0.54 | ||||||||
Weighted average number of shares outstanding: | ||||||||||||||||
Basic | 11,255 | 11,324 | 11,258 | 11,321 | ||||||||||||
Diluted | 11,255 | 11,850 | 11,258 | 11,854 | ||||||||||||
Dividends declared per common share | $ | 0.09 | $ | 0.09 | $ | 0.18 | $ | 0.18 |
MidSouth Bancorp, Inc. and Subsidiaries Consolidated Statements of Comprehensive Income (unaudited) (in thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net earnings | $ | 2,493 | $ | 5,099 | $ | 4,842 | $ | 6,590 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Unrealized gains on securities available-for-sale: | ||||||||||||||||
Unrealized holding gains (losses) arising during the year | 2,060 | (2,971 | ) | 4,862 | (1,270 | ) | ||||||||||
Less: reclassification adjustment for gains on sales of securities available-for-sale | (20 | ) | (1,128 | ) | (20 | ) | (1,243 | ) | ||||||||
Total other comprehensive income (loss), before tax | 2,040 | (4,099 | ) | 4,842 | (2,513 | ) | ||||||||||
Income tax effect related to items of other comprehensive income (loss) | (714 | ) | 1,435 | (1,694 | ) | 880 | ||||||||||
Total other comprehensive income (loss), net of tax | 1,326 | (2,664 | ) | 3,148 | (1,633 | ) | ||||||||||
Total comprehensive income | $ | 3,819 | $ | 2,435 | $ | 7,990 | $ | 4,957 |
MidSouth Bancorp, Inc. and Subsidiaries Consolidated Statement of Shareholders’ Equity (unaudited) For the Six Months Ended June 30, 2016 (in thousands, except share and per share data) | ||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Unearned ESOP Shares | Accumulated Other Comprehensive Income | Retained Earnings | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||||||||||||
Balance - December 31, 2015 | 123,200 | $ | 41,120 | 11,362,150 | $ | 1,136 | $ | 110,771 | $ | (1,093 | ) | $ | 509 | $ | 60,694 | $ | 213,137 | |||||||||||||||||
Net earnings | — | — | — | — | — | — | — | 4,842 | 4,842 | |||||||||||||||||||||||||
Dividends on Series B and Series C preferred stock | — | — | — | — | — | — | — | (1,238 | ) | (1,238 | ) | |||||||||||||||||||||||
Dividends on common stock, $0.18 per share | — | — | — | — | — | — | — | (2,039 | ) | (2,039 | ) | |||||||||||||||||||||||
Conversion of Series C preferred stock to common stock | (100 | ) | (10 | ) | 555 | — | 10 | — | — | — | — | |||||||||||||||||||||||
Increase in ESOP obligation, net of repayments | — | — | — | — | — | (114 | ) | — | — | (114 | ) | |||||||||||||||||||||||
Tax benefit resulting from distribution from Directors Deferred Compensation Plan | — | — | — | — | 39 | — | — | — | 39 | |||||||||||||||||||||||||
Stock option and restricted stock compensation expense | — | — | — | — | 123 | — | — | — | 123 | |||||||||||||||||||||||||
ESOP compensation expense | — | — | — | — | (66 | ) | — | — | — | (66 | ) | |||||||||||||||||||||||
Tax benefit for dividends paid to the ESOP | — | — | — | — | 109 | — | — | — | 109 | |||||||||||||||||||||||||
Change in accumulated other comprehensive income | — | — | — | — | — | — | 3,148 | — | 3,148 | |||||||||||||||||||||||||
Balance – June 30, 2016 | 123,100 | $ | 41,110 | 11,362,705 | $ | 1,136 | $ | 110,986 | $ | (1,207 | ) | $ | 3,657 | $ | 62,259 | $ | 217,941 |
MidSouth Bancorp, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) (in thousands) | ||||||||
For the Six Months Ended June 30, | ||||||||
2016 | 2015 | |||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 4,842 | $ | 6,590 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Depreciation | 2,964 | 3,107 | ||||||
Accretion of purchase accounting adjustments | (353 | ) | (589 | ) | ||||
Provision for loan losses | 5,100 | 7,100 | ||||||
Deferred tax benefit | (330 | ) | (683 | ) | ||||
Amortization of premiums on securities, net | 1,407 | 1,396 | ||||||
Stock option expense | 97 | 170 | ||||||
Restricted stock expense | 26 | — | ||||||
Excess of book value over market value of ESOP shares released | (66 | ) | — | |||||
Net gain on sale of investment securities | (20 | ) | (1,243 | ) | ||||
Net loss (gain) on sale of other real estate owned | 37 | (10 | ) | |||||
Net write down of other real estate owned | 130 | 29 | ||||||
Net gain on sale/disposal of premises and equipment | (7 | ) | (2 | ) | ||||
Income recognized from death benefit on bank owned life insurance | — | (160 | ) | |||||
Change in accrued interest receivable | 109 | (156 | ) | |||||
Change in accrued interest payable | (13 | ) | (23 | ) | ||||
Change in other assets & other liabilities, net | 4,898 | (2,621 | ) | |||||
Net cash provided by operating activities | 18,821 | 12,905 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from maturities and calls of securities available-for-sale | 32,205 | 39,780 | ||||||
Proceeds from maturities and calls of securities held-to-maturity | 6,861 | 14,083 | ||||||
Proceeds from sale of securities available-for-sale | 6,803 | 40,277 | ||||||
Purchases of securities available-for-sale | (35,123 | ) | (105,486 | ) | ||||
Proceeds from sale of other investments | 600 | 349 | ||||||
Purchases of other investments | (448 | ) | (957 | ) | ||||
Net change in loans | (1,062 | ) | (12,486 | ) | ||||
Proceeds from bank owned life insurance death benefit | — | 498 | ||||||
Purchases of premises and equipment | (2,360 | ) | (2,438 | ) | ||||
Proceeds from sale of premises and equipment | 40 | 28 | ||||||
Proceeds from sale of other real estate owned | 1,458 | 582 | ||||||
Net cash provided by (used in) investing activities | 8,974 | (25,770 | ) | |||||
Cash flows from financing activities: | ||||||||
Change in deposits | 9,240 | (26,919 | ) | |||||
Change in securities sold under agreements to repurchase | (171 | ) | 22,449 | |||||
Borrowings on Federal Home Loan Bank advances | 25,000 | 80,000 | ||||||
Repayments of Federal Home Loan Bank advances | (50,033 | ) | (65,032 | ) | ||||
Proceeds and tax benefit from exercise of stock options | — | 99 | ||||||
Tax benefit resulting from distribution from Directors Deferred Compensation Plan | 39 | 420 | ||||||
Tax benefit for dividends paid to ESOP | 109 | — | ||||||
Payment of dividends on preferred stock | (598 | ) | (347 | ) | ||||
Payment of dividends on common stock | (2,047 | ) | (2,041 | ) | ||||
Net cash (used in) provided by financing activities | (18,461 | ) | 8,629 | |||||
Net increase (decrease) in cash and cash equivalents | 9,334 | (4,236 | ) | |||||
Cash and cash equivalents, beginning of period | 89,201 | 86,872 | ||||||
Cash and cash equivalents, end of period | $ | 98,535 | $ | 82,636 | ||||
Supplemental cash flow information: | ||||||||
Interest paid | $ | 2,831 | $ | 2,864 | ||||
Income taxes paid | 1,963 | 5,180 | ||||||
Noncash investing and financing activities: | ||||||||
Transfer of loans to other real estate | 173 | 909 | ||||||
Change in accrued common stock dividends | — | 2 | ||||||
Change in accrued preferred stock dividends | 640 | (2 | ) | |||||
Net change in loan to ESOP | (114 | ) | (234 | ) |
MidSouth Bancorp, Inc. and Subsidiaries Notes to Interim Consolidated Financial Statements June 30, 2016 (Unaudited) |
June 30, 2016 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available-for-sale: | ||||||||||||||||
Obligations of state and political subdivisions | $ | 24,226 | $ | 577 | $ | 1 | $ | 24,802 | ||||||||
GSE mortgage-backed securities | 70,115 | 3,228 | — | 73,343 | ||||||||||||
Collateralized mortgage obligations: residential | 205,815 | 2,035 | 220 | 207,630 | ||||||||||||
Collateralized mortgage obligations: commercial | 3,858 | — | 29 | 3,829 | ||||||||||||
Mutual funds | 2,100 | 35 | — | 2,135 | ||||||||||||
Corporate securities | 6,500 | — | — | 6,500 | ||||||||||||
$ | 312,614 | $ | 5,875 | $ | 250 | $ | 318,239 | |||||||||
December 31, 2015 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available-for-sale: | ||||||||||||||||
Obligations of state and political subdivisions | $ | 30,750 | $ | 770 | $ | 27 | $ | 31,493 | ||||||||
GSE mortgage-backed securities | 84,946 | 2,321 | 229 | 87,038 | ||||||||||||
Collateralized mortgage obligations: residential | 194,067 | 297 | 2,276 | 192,088 | ||||||||||||
Collateralized mortgage obligations: commercial | 5,512 | 1 | 65 | 5,448 | ||||||||||||
Mutual funds | 2,100 | — | 8 | 2,092 | ||||||||||||
$ | 317,375 | $ | 3,389 | $ | 2,605 | $ | 318,159 |
June 30, 2016 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Held-to-maturity: | ||||||||||||||||
Obligations of state and political subdivisions | $ | 43,232 | $ | 1,424 | $ | 1 | $ | 44,655 | ||||||||
GSE mortgage-backed securities | 50,301 | 1,444 | — | 51,745 | ||||||||||||
Collateralized mortgage obligations: residential | 9,942 | — | 65 | 9,877 | ||||||||||||
Collateralized mortgage obligations: commercial | 5,945 | 51 | — | 5,996 | ||||||||||||
$ | 109,420 | $ | 2,919 | $ | 66 | $ | 112,273 | |||||||||
December 31, 2015 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Held-to-maturity: | ||||||||||||||||
Obligations of state and political subdivisions | $ | 43,737 | $ | 697 | $ | 6 | $ | 44,428 | ||||||||
GSE mortgage-backed securities | 55,696 | 705 | 131 | 56,270 | ||||||||||||
Collateralized mortgage obligations: residential | 10,803 | — | 361 | 10,442 | ||||||||||||
Collateralized mortgage obligations: commercial | 6,556 | 2 | — | 6,558 | ||||||||||||
$ | 116,792 | $ | 1,404 | $ | 498 | $ | 117,698 |
Amortized Cost | Fair Value | |||||||
Available-for-sale: | ||||||||
Due in one year or less | $ | 3,333 | $ | 3,384 | ||||
Due after one year through five years | 14,755 | 15,115 | ||||||
Due after five years through ten years | 2,865 | 3,016 | ||||||
Due after ten years | 3,273 | 3,287 | ||||||
Mortgage-backed securities and collateralized mortgage obligations: | ||||||||
Residential | 275,930 | 280,973 | ||||||
Commercial | 3,858 | 3,829 | ||||||
Mutual funds | 2,100 | 2,135 | ||||||
Corporate securities | 6,500 | 6,500 | ||||||
$ | 312,614 | $ | 318,239 | |||||
Amortized Cost | Fair Value | |||||||
Held-to-maturity: | ||||||||
Due in one year or less | $ | 2,475 | $ | 2,477 | ||||
Due after one year through five years | 5,374 | 5,507 | ||||||
Due after five years through ten years | 9,419 | 9,770 | ||||||
Due after ten years | 25,964 | 26,901 | ||||||
Mortgage-backed securities and collateralized mortgage obligations: | ||||||||
Residential | 60,243 | 61,622 | ||||||
Commercial | 5,945 | 5,996 | ||||||
$ | 109,420 | $ | 112,273 |
June 30, 2016 | ||||||||||||||||||||||||
Securities with losses under 12 months | Securities with losses over 12 months | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||
Obligations of state and political subdivisions | $ | 762 | $ | 1 | $ | — | $ | — | $ | 762 | $ | 1 | ||||||||||||
Collateralized mortgage obligations: residential | 22,419 | 65 | 12,815 | 155 | 35,234 | 220 | ||||||||||||||||||
Collateralized mortgage obligations: commercial | 1,205 | 4 | 2,624 | 25 | 3,829 | 29 | ||||||||||||||||||
$ | 24,386 | $ | 70 | $ | 15,439 | $ | 180 | $ | 39,825 | $ | 250 | |||||||||||||
December 31, 2015 | ||||||||||||||||||||||||
Securities with losses under 12 months | Securities with losses over 12 months | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||||
Available-for-sale: | ||||||||||||||||||||||||
Obligations of state and political subdivisions | $ | 1,192 | $ | 27 | $ | — | $ | — | $ | 1,192 | $ | 27 | ||||||||||||
GSE mortgage-backed securities | 21,607 | 229 | — | — | 21,607 | 229 | ||||||||||||||||||
Collateralized mortgage obligations: residential | 140,999 | 1,207 | 30,029 | 1,069 | 171,028 | 2,276 | ||||||||||||||||||
Collateralized mortgage obligations: commercial | — | — | 2,946 | 65 | 2,946 | 65 | ||||||||||||||||||
Other asset-backed securities | 2,092 | 8 | — | — | 2,092 | 8 | ||||||||||||||||||
$ | 165,890 | $ | 1,471 | $ | 32,975 | $ | 1,134 | $ | 198,865 | $ | 2,605 |
June 30, 2016 | ||||||||||||||||||||||||
Securities with losses under 12 months | Securities with losses over 12 months | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||
Obligations of state and political subdivisions | $ | — | $ | — | $ | 505 | $ | 1 | $ | 505 | $ | 1 | ||||||||||||
Collateralized mortgage obligations: residential | — | — | 9,876 | 65 | 9,876 | 65 | ||||||||||||||||||
$ | — | $ | — | $ | 10,381 | $ | 66 | $ | 10,381 | $ | 66 | |||||||||||||
December 31, 2015 | ||||||||||||||||||||||||
Securities with losses under 12 months | Securities with losses over 12 months | Total | ||||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | |||||||||||||||||||
Held-to-maturity: | ||||||||||||||||||||||||
Obligations of state and political subdivisions | $ | 541 | $ | 1 | $ | 505 | $ | 5 | $ | 1,046 | $ | 6 | ||||||||||||
GSE mortgage-backed securities | — | — | 7,021 | 131 | 7,021 | 131 | ||||||||||||||||||
Collateralized mortgage obligations: residential | — | — | 10,442 | 361 | 10,442 | 361 | ||||||||||||||||||
$ | 541 | $ | 1 | $ | 17,968 | $ | 497 | $ | 18,509 | $ | 498 |
June 30, 2016 | December 31, 2015 | |||||||
Commercial, financial and agricultural | $ | 456,264 | $ | 454,028 | ||||
Real estate – construction | 96,331 | 74,952 | ||||||
Real estate – commercial | 463,142 | 471,141 | ||||||
Real estate – residential | 148,379 | 149,064 | ||||||
Installment loans to individuals | 94,522 | 111,009 | ||||||
Lease financing receivable | 1,641 | 1,968 | ||||||
Other | 2,110 | 1,483 | ||||||
1,262,389 | 1,263,645 | |||||||
Less allowance for loan losses | (21,378 | ) | (19,011 | ) | ||||
$ | 1,241,011 | $ | 1,244,634 |
June 30, 2016 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Coml, Fin, and Agric | Constru-ction | Commercial | Residential | Installment loans to individuals | Lease financing receivable | Other | Total | |||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 11,268 | $ | 819 | $ | 4,614 | $ | 816 | $ | 1,468 | $ | 14 | $ | 12 | $ | 19,011 | ||||||||||||||||
Charge-offs | (2,373 | ) | — | (12 | ) | (23 | ) | (611 | ) | — | — | (3,019 | ) | |||||||||||||||||||
Recoveries | 120 | — | 84 | 4 | 78 | — | — | 286 | ||||||||||||||||||||||||
Provision | 5,013 | (405 | ) | 162 | (134 | ) | 464 | (3 | ) | 3 | 5,100 | |||||||||||||||||||||
Ending balance | $ | 14,028 | $ | 414 | $ | 4,848 | $ | 663 | $ | 1,399 | $ | 11 | $ | 15 | $ | 21,378 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,027 | $ | — | $ | 2,260 | $ | 251 | $ | 265 | $ | — | $ | — | $ | 3,803 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 13,001 | $ | 414 | $ | 2,588 | $ | 412 | $ | 1,134 | $ | 11 | $ | 15 | $ | 17,575 | ||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 456,264 | $ | 96,331 | $ | 463,142 | $ | 148,379 | $ | 94,522 | $ | 1,641 | $ | 2,110 | $ | 1,262,389 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 29,688 | $ | 34 | $ | 27,292 | $ | 2,322 | $ | 471 | $ | — | $ | — | $ | 59,807 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 426,576 | $ | 96,297 | $ | 435,255 | $ | 145,981 | $ | 94,051 | $ | 1,641 | $ | 2,110 | $ | 1,201,911 | ||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | 595 | $ | 76 | $ | — | $ | — | $ | — | $ | 671 |
June 30, 2015 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Coml, Fin, and Agric | Constr-uction | Commercial | Residential | Installment loans to individuals | Lease financing receivable | Other | Total | |||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 5,729 | $ | 954 | $ | 2,402 | $ | 810 | $ | 1,311 | $ | 16 | $ | 4 | $ | 11,226 | ||||||||||||||||
Charge-offs | (1,855 | ) | (6 | ) | (48 | ) | (37 | ) | (537 | ) | — | — | (2,483 | ) | ||||||||||||||||||
Recoveries | 144 | — | 14 | 5 | 42 | — | — | 205 | ||||||||||||||||||||||||
Provision | 5,074 | 20 | 1,560 | 608 | (173 | ) | 9 | 2 | 7,100 | |||||||||||||||||||||||
Ending balance | $ | 9,092 | $ | 968 | $ | 3,928 | $ | 1,386 | $ | 643 | $ | 25 | $ | 6 | $ | 16,048 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 889 | $ | — | $ | 1,123 | $ | 107 | $ | 156 | $ | — | $ | — | $ | 2,275 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 8,203 | $ | 968 | $ | 2,805 | $ | 1,279 | $ | 487 | $ | 25 | $ | 6 | $ | 13,773 | ||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 471,397 | $ | 79,176 | $ | 469,022 | $ | 153,820 | $ | 113,626 | $ | 5,561 | $ | 1,790 | $ | 1,294,392 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 23,750 | $ | 531 | $ | 18,423 | $ | 1,823 | $ | 324 | $ | — | $ | — | $ | 44,851 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 447,647 | $ | 78,645 | $ | 449,957 | $ | 151,912 | $ | 113,302 | $ | 5,561 | $ | 1,790 | $ | 1,248,814 | ||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | 642 | $ | 85 | $ | — | $ | — | $ | — | $ | 727 |
June 30, 2016 | ||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Current | Total Loans | Recorded Investment > 90 days and Accruing | ||||||||||||||||||||||
Commercial, financial, and agricultural | $ | 4,936 | $ | 2,963 | $ | 23,535 | $ | 31,434 | $ | 424,830 | $ | 456,264 | $ | 34 | ||||||||||||||
Real estate - construction | 24 | 649 | 10 | 683 | 95,648 | 96,331 | — | |||||||||||||||||||||
Real estate - commercial | 3,642 | 254 | 21,426 | 25,322 | 437,820 | 463,142 | — | |||||||||||||||||||||
Real estate - residential | 1,054 | 670 | 1,739 | 3,463 | 144,916 | 148,379 | — | |||||||||||||||||||||
Installment loans to individuals | 886 | 132 | 434 | 1,452 | 93,070 | 94,522 | 22 | |||||||||||||||||||||
Lease financing receivable | — | — | — | — | 1,641 | 1,641 | — | |||||||||||||||||||||
Other loans | 94 | 7 | — | 101 | 2,009 | 2,110 | — | |||||||||||||||||||||
$ | 10,636 | $ | 4,675 | $ | 47,144 | $ | 62,455 | $ | 1,199,934 | $ | 1,262,389 | $ | 56 | |||||||||||||||
December 31, 2015 | ||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | Greater than 90 Days Past Due | Total Past Due | Current | Total Loans | Recorded Investment > 90 days and Accruing | ||||||||||||||||||||||
Commercial, financial, and agricultural | $ | 1,362 | $ | 2,317 | $ | 25,696 | $ | 29,375 | $ | 424,653 | $ | 454,028 | $ | 59 | ||||||||||||||
Real estate - construction | 1,047 | — | 12 | 1,059 | 73,893 | 74,952 | — | |||||||||||||||||||||
Real estate - commercial | 1,164 | 514 | 19,512 | 21,190 | 449,951 | 471,141 | — | |||||||||||||||||||||
Real estate - residential | 1,703 | 367 | 1,563 | 3,633 | 145,431 | 149,064 | 19 | |||||||||||||||||||||
Installment loans to individuals | 1,022 | 244 | 409 | 1,675 | 109,334 | 111,009 | 69 | |||||||||||||||||||||
Lease financing receivable | — | — | — | — | 1,968 | 1,968 | — | |||||||||||||||||||||
Other loans | 101 | 4 | — | 105 | 1,378 | 1,483 | — | |||||||||||||||||||||
$ | 6,399 | $ | 3,446 | $ | 47,192 | $ | 57,037 | $ | 1,206,608 | $ | 1,263,645 | $ | 147 |
June 30, 2016 | December 31, 2015 | |||||||
Commercial, financial, and agricultural | $ | 29,676 | $ | 27,705 | ||||
Real estate - construction | 34 | 37 | ||||||
Real estate - commercial | 27,300 | 19,907 | ||||||
Real estate - residential | 2,384 | 1,998 | ||||||
Installment loans to individuals | 471 | 404 | ||||||
Lease financing receivable | — | — | ||||||
Other | — | — | ||||||
$ | 59,865 | $ | 50,051 |
June 30, 2016 | ||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial, financial, and agricultural | $ | 26,830 | $ | 27,313 | $ | — | $ | 26,447 | $ | 127 | ||||||||||
Real estate - construction | 34 | 34 | — | 34 | — | |||||||||||||||
Real estate - commercial | 8,743 | 8,743 | — | 8,154 | 404 | |||||||||||||||
Real estate - residential | 1,349 | 1,349 | — | 1,265 | 3 | |||||||||||||||
Installment loans to individuals | 30 | 30 | — | 27 | — | |||||||||||||||
Subtotal: | 36,986 | 37,469 | — | 35,927 | 534 | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial, financial, and agricultural | 2,858 | 2,858 | 1,027 | 2,729 | 14 | |||||||||||||||
Real estate - commercial | 18,549 | 18,549 | 2,260 | 19,248 | 28 | |||||||||||||||
Real estate - residential | 973 | 973 | 251 | 1,011 | — | |||||||||||||||
Installment loans to individuals | 441 | 455 | 265 | 462 | 1 | |||||||||||||||
Subtotal: | 22,821 | 22,835 | 3,803 | 23,450 | 43 | |||||||||||||||
Totals: | ||||||||||||||||||||
Commercial | 56,980 | 57,463 | 3,287 | 56,578 | 573 | |||||||||||||||
Construction | 34 | 34 | — | 34 | — | |||||||||||||||
Residential | 2,322 | 2,322 | 251 | 2,276 | 3 | |||||||||||||||
Consumer | 471 | 485 | 265 | 489 | 1 | |||||||||||||||
Grand total: | $ | 59,807 | $ | 60,304 | $ | 3,803 | $ | 59,377 | $ | 577 | ||||||||||
December 31, 2015 | ||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial, financial, and agricultural | $ | 22,529 | $ | 22,793 | $ | — | $ | 11,484 | $ | 745 | ||||||||||
Real estate - construction | 37 | 37 | — | 45 | — | |||||||||||||||
Real estate - commercial | 5,886 | 5,886 | — | 3,903 | 97 | |||||||||||||||
Real estate - residential | 1,365 | 1,385 | — | 954 | 17 | |||||||||||||||
Installment loans to individuals | 34 | 34 | — | 56 | — | |||||||||||||||
Subtotal: | 29,851 | 30,135 | — | 16,442 | 859 | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial, financial, and agricultural | 5,189 | 6,373 | 961 | 3,704 | 138 | |||||||||||||||
Real estate - commercial | 14,004 | 14,004 | 1,585 | 9,236 | 161 | |||||||||||||||
Real estate - residential | 538 | 538 | 160 | 533 | 7 | |||||||||||||||
Installment loans to individuals | 370 | 384 | 221 | 334 | 8 | |||||||||||||||
Subtotal: | 20,101 | 21,299 | 2,927 | 13,807 | 314 | |||||||||||||||
Totals: | ||||||||||||||||||||
Commercial | 47,608 | 49,056 | 2,546 | 28,327 | 1,141 | |||||||||||||||
Construction | 37 | 37 | — | 45 | — | |||||||||||||||
Residential | 1,903 | 1,923 | 160 | 1,487 | 24 | |||||||||||||||
Consumer | 404 | 418 | 221 | 390 | 8 | |||||||||||||||
Grand total: | $ | 49,952 | $ | 51,434 | $ | 2,927 | $ | 30,249 | $ | 1,173 |
June 30, 2016 | |||||||||||||||||||||
Commercial Credit Exposure | |||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||
Commercial, financial, and agricultural | Real estate - commercial | Total | % of Total | ||||||||||||||||||
Pass | $ | 372,933 | $ | 399,866 | $ | 772,799 | 84.06 | % | |||||||||||||
Special mention | 32,211 | 26,353 | 58,564 | 6.37 | % | ||||||||||||||||
Substandard | 50,896 | 36,923 | 87,819 | 9.55 | % | ||||||||||||||||
Doubtful | 224 | — | 224 | 0.02 | % | ||||||||||||||||
$ | 456,264 | $ | 463,142 | $ | 919,406 | 100.00 | % | ||||||||||||||
Construction Credit Exposure | |||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||
Real estate - construction | % of Total | ||||||||||||||||||||
Pass | $ | 96,117 | 99.78 | % | |||||||||||||||||
Special mention | — | — | % | ||||||||||||||||||
Substandard | 214 | 0.22 | % | ||||||||||||||||||
$ | 96,331 | 100.00 | % | ||||||||||||||||||
Residential Credit Exposure | |||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||
Real estate - residential | % of Total | ||||||||||||||||||||
Pass | $ | 144,523 | 97.40 | % | |||||||||||||||||
Special mention | 202 | 0.14 | % | ||||||||||||||||||
Substandard | 3,654 | 2.46 | % | ||||||||||||||||||
$ | 148,379 | 100.00 | % | ||||||||||||||||||
Consumer and Commercial Credit Exposure | |||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | |||||||||||||||||||||
Installment loans to individuals | Lease financing receivable | Other | Total | % of Total | |||||||||||||||||
Performing | $ | 94,029 | $ | 1,641 | $ | 2,110 | $ | 97,780 | 99.50 | % | |||||||||||
Nonperforming | 493 | — | — | 493 | 0.50 | % | |||||||||||||||
$ | 94,522 | $ | 1,641 | $ | 2,110 | $ | 98,273 | 100.00 | % |
December 31, 2015 | |||||||||||||||||||||
Commercial Credit Exposure | |||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||
Commercial, financial, and agricultural | Real estate - commercial | Total | % of Total | ||||||||||||||||||
Pass | $ | 383,897 | $ | 412,141 | $ | 796,038 | 86.04 | % | |||||||||||||
Special mention | 32,506 | 28,217 | 60,723 | 6.55 | % | ||||||||||||||||
Substandard | 37,353 | 30,783 | 68,136 | 7.36 | % | ||||||||||||||||
Doubtful | 272 | — | 272 | 0.03 | % | ||||||||||||||||
$ | 454,028 | $ | 471,141 | $ | 925,169 | 100.00 | % | ||||||||||||||
Construction Credit Exposure | |||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||
Real estate - construction | % of Total | ||||||||||||||||||||
Pass | $ | 74,794 | 99.79 | % | |||||||||||||||||
Special mention | 34 | 0.04 | % | ||||||||||||||||||
Substandard | 124 | 0.17 | % | ||||||||||||||||||
$ | 74,952 | 100.00 | % | ||||||||||||||||||
Residential Credit Exposure | |||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||
Real estate - residential | % of Total | ||||||||||||||||||||
Pass | $ | 144,704 | 97.08 | % | |||||||||||||||||
Special mention | 1,225 | 0.82 | % | ||||||||||||||||||
Substandard | 3,135 | 2.10 | % | ||||||||||||||||||
$ | 149,064 | 100.00 | % | ||||||||||||||||||
Consumer and Commercial Credit Exposure | |||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | |||||||||||||||||||||
Installment loans to individuals | Lease financing receivable | Other | Total | % of Total | |||||||||||||||||
Performing | $ | 110,536 | $ | 1,968 | $ | 1,483 | $ | 113,987 | 99.59 | % | |||||||||||
Nonperforming | 473 | — | — | 473 | 0.41 | % | |||||||||||||||
$ | 111,009 | $ | 1,968 | $ | 1,483 | $ | 114,460 | 100.00 | % |
June 30, 2016 | ||||||||||||||||
Current | Past Due Greater Than 30 Days | Nonaccrual TDRs | Total TDRs | |||||||||||||
Commercial, financial and agricultural | $ | 14 | $ | — | $ | 24,652 | $ | 24,666 | ||||||||
Real estate – commercial | 140 | — | 1,572 | 1,712 | ||||||||||||
$ | 154 | $ | — | $ | 26,224 | $ | 26,378 | |||||||||
December 31, 2015 | ||||||||||||||||
Current | Past Due Greater Than 30 Days | Nonaccrual TDRs | Total TDRs | |||||||||||||
Commercial, financial and agricultural | $ | 16 | $ | — | $ | 20,865 | $ | 20,881 | ||||||||
Real estate – commercial | — | 148 | — | 148 | ||||||||||||
$ | 16 | $ | 148 | $ | 20,865 | $ | 21,029 |
June 30, 2016 | December 31, 2015 | |||||||
Gross carrying amount | $ | 11,674 | $ | 11,674 | ||||
Less accumulated amortization | (6,499 | ) | (5,946 | ) | ||||
Net carrying amount | $ | 5,175 | $ | 5,728 |
Three Months Ended June 30, | ||||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Before Tax Amount | Tax Effect | Net of Tax Amount | Before Tax Amount | Tax Effect | Net of Tax Amount | |||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||||||
Change in unrealized gains (losses) during period | $ | 2,060 | $ | (721 | ) | $ | 1,339 | $ | (2,971 | ) | $ | 1,040 | $ | (1,931 | ) | |||||||||
Reclassification adjustment for gains included in net income | (20 | ) | 7 | (13 | ) | (1,128 | ) | 395 | (733 | ) | ||||||||||||||
Total other comprehensive income (loss) | $ | 2,040 | $ | (714 | ) | $ | 1,326 | $ | (4,099 | ) | $ | 1,435 | $ | (2,664 | ) |
Six Months Ended June 30, | ||||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||||
Before Tax Amount | Tax Effect | Net of Tax Amount | Before Tax Amount | Tax Effect | Net of Tax Amount | |||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||||||
Change in unrealized gains (losses) during period | $ | 4,862 | $ | (1,701 | ) | $ | 3,161 | $ | (1,270 | ) | $ | 445 | $ | (825 | ) | |||||||||
Reclassification adjustment for gains included in net income | (20 | ) | 7 | (13 | ) | (1,243 | ) | 435 | (808 | ) | ||||||||||||||
Total other comprehensive income (loss) | $ | 4,842 | $ | (1,694 | ) | $ | 3,148 | $ | (2,513 | ) | $ | 880 | $ | (1,633 | ) |
Three Months Ended June 30, | ||||||||||||
2016 | 2015 | |||||||||||
Details about Accumulated Other Comprehensive Income Components | Reclassifications Out of Accumulated Other Comprehensive Income | Income Statement Line Item | Reclassifications Out of Accumulated Other Comprehensive Income | Income Statement Line Item | ||||||||
Unrealized gains and losses on securities available-for-sale: | ||||||||||||
$ | (20 | ) | Gain on sale of securities, net | $ | (1,128 | ) | Gain on sale of securities, net | |||||
7 | Tax expense | 395 | Tax expense | |||||||||
$ | (13 | ) | Net of tax | $ | (733 | ) | Net of tax |
Six Months Ended June 30, | ||||||||||||
2016 | 2015 | |||||||||||
Details about Accumulated Other Comprehensive Income Components | Reclassifications Out of Accumulated Other Comprehensive Income | Income Statement Line Item | Reclassifications Out of Accumulated Other Comprehensive Income | Income Statement Line Item | ||||||||
Unrealized gains and losses on securities available-for-sale: | ||||||||||||
$ | (20 | ) | Gain on sale of securities, net | $ | (1,243 | ) | Gain on sale of securities, net | |||||
7 | Tax expense | 435 | Tax expense | |||||||||
$ | (13 | ) | Net of tax | $ | (808 | ) | Net of tax |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net earnings available to common shareholders | $ | 1,682 | $ | 4,927 | $ | 3,604 | $ | 6,245 | ||||||||
Dividends on Series C preferred stock | — | 92 | — | 185 | ||||||||||||
Adjusted net earnings available to common shareholders | $ | 1,682 | $ | 5,019 | $ | 3,604 | $ | 6,430 | ||||||||
Weighted average number of common shares outstanding used in computation of basic earnings per common share | 11,255 | 11,324 | 11,258 | 11,321 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options | — | 17 | — | 23 | ||||||||||||
Convertible preferred stock and warrants | — | 509 | — | 510 | ||||||||||||
Weighted average number of common shares outstanding plus effect of dilutive securities – used in computation of diluted earnings per share | 11,255 | 11,850 | 11,258 | 11,854 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Stock options | 319 | 130 | 324 | 130 | ||||||||
Restricted stock | 11 | — | 11 | — | ||||||||
Shares subject to the outstanding warrant issued in connection with the CPP transaction | 104 | 104 | 104 | — | ||||||||
Convertible preferred stock | 507 | — | 507 | — |
Assets / Liabilities Measured at Fair Value at | Fair Value Measurements at June 30, 2016 | |||||||||||||||
Description | June 30, 2016 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Obligations of state and political subdivisions | $ | 24,802 | $ | — | $ | 24,802 | $ | — | ||||||||
GSE mortgage-backed securities | 73,343 | — | 73,343 | — | ||||||||||||
Collateralized mortgage obligations: residential | 207,630 | — | 207,630 | — | ||||||||||||
Collateralized mortgage obligations: commercial | 3,829 | — | 3,829 | — | ||||||||||||
Mutual funds | 2,135 | 2,135 | — | — | ||||||||||||
Corporate securities | 6,500 | — | 6,500 | — |
Assets / Liabilities Measured at Fair Value at | Fair Value Measurements at December 31, 2015 | |||||||||||
Description | December 31, 2015 | Level 1 | Level 2 | Level 3 | ||||||||
Available-for-sale securities: | ||||||||||||
Obligations of state and political subdivisions | 31,493 | — | 31,493 | — | ||||||||
GSE mortgage-backed securities | 87,038 | — | 87,038 | — | ||||||||
Collateralized mortgage obligations: residential | 192,088 | — | 192,088 | — | ||||||||
Collateralized mortgage obligations: commercial | 5,448 | — | 5,448 | — | ||||||||
Mutual funds | 2,092 | 2,092 | — | — |
Assets / Liabilities Measured at Fair Value at | Fair Value Measurements at June 30, 2016 | |||||||||||||||
Description | June 30, 2016 | Level 1 | Level 2 | Level 3 | ||||||||||||
Impaired loans | $ | 19,474 | $ | — | $ | 19,474 | $ | — | ||||||||
Other real estate | 2,735 | — | 2,735 | — | ||||||||||||
Assets / Liabilities Measured at Fair Value at | Fair Value Measurements at December 31, 2015 | |||||||||||||||
Description | December 31, 2015 | Level 1 | Level 2 | Level 3 | ||||||||||||
Impaired loans | $ | 17,487 | $ | — | $ | 17,487 | $ | — | ||||||||
Other real estate | 4,187 | — | 4,187 | — |
Fair Value Measurements at June 30, 2016 Using: | ||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and due from banks, interest-bearing deposits in banks and federal funds sold | $ | 98,535 | $ | 98,535 | $ | — | $ | — | ||||||||
Securities available-for-sale | 318,239 | 2,135 | 316,104 | — | ||||||||||||
Securities held-to-maturity | 109,420 | — | 112,273 | — | ||||||||||||
Other investments | 11,036 | 11,036 | — | — | ||||||||||||
Loans, net | 1,241,011 | — | 19,474 | 1,228,352 | ||||||||||||
Cash surrender value of life insurance policies | 14,167 | — | 14,167 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Non-interest-bearing deposits | 383,797 | — | 383,797 | — | ||||||||||||
Interest-bearing deposits | 1,176,269 | — | 1,013,360 | 162,694 | ||||||||||||
Securities sold under agreements to repurchase | 85,786 | 85,786 | — | — | ||||||||||||
Long-term Federal Home Loan Bank advances | 25,638 | — | — | 26,408 | ||||||||||||
Junior subordinated debentures | 22,167 | — | 22,167 | — |
Fair Value Measurements at December 31, 2015 Using: | ||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Financial assets: | ||||||||||||||||
Cash and due from banks, interest-bearing deposits in banks and federal funds sold | $ | 89,201 | $ | 89,201 | $ | — | $ | — | ||||||||
Securities available-for-sale | 318,159 | 2,092 | 316,067 | — | ||||||||||||
Securities held-to-maturity | 116,792 | — | 117,698 | — | ||||||||||||
Other investments | 11,188 | 11,188 | — | — | ||||||||||||
Loans, net | 1,244,634 | — | 17,487 | 1,232,497 | ||||||||||||
Cash surrender value of life insurance policies | 13,622 | — | 13,622 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Non-interest-bearing deposits | 374,261 | — | 374,261 | — | ||||||||||||
Interest-bearing deposits | 1,176,589 | — | 1,007,137 | 168,633 | ||||||||||||
Securities sold under agreements to repurchase | 85,957 | 85,957 | — | — | ||||||||||||
Short-term Federal Home Loan Bank advances | 25,000 | — | 25,000 | — | ||||||||||||
Long-term Federal Home Loan Bank advances | 25,851 | — | — | 26,508 | ||||||||||||
Junior subordinated debentures | 22,167 | — | 22,167 | — |
• | changes in interest rates and market prices that could affect the net interest margin, asset valuation, and expense levels; |
• | changes in local economic and business conditions, including, without limitation, changes related to the oil and gas industries, that could adversely affect customers and their ability to repay borrowings under agreed upon terms, adversely affect the value of the underlying collateral related to their borrowings, and reduce demand for loans; |
• | increased competition for deposits and loans which could affect compositions, rates and terms; |
• | changes in the levels of prepayments received on loans and investment securities that adversely affect the yield and value of the earning assets; |
• | a deviation in actual experience from the underlying assumptions used to determine and establish our allowance for loan losses (“ALL”), which could result in greater than expected loan losses; |
• | changes in the availability of funds resulting from reduced liquidity or increased costs; |
• | the timing, ability to complete and the impact of proposed and/or future acquisitions, the success or failure of integrating acquired operations, and the ability to capitalize on growth opportunities upon entering new markets; |
• | the timing, ability to complete and the impact of proposed and/or future efficiency initiatives; |
• | the ability to acquire, operate, and maintain effective and efficient operating systems; |
• | increased asset levels and changes in the composition of assets that would impact capital levels and regulatory capital ratios; |
• | loss of critical personnel and the challenge of hiring qualified personnel at reasonable compensation levels; |
• | legislative and regulatory changes, including the changes in the regulatory capital framework under the Federal Reserve Board’s Basel III regulatory capital reforms, the impact of regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), including the implementation of the Consumer Financial Protection Bureau, and other changes in banking, securities and tax laws and regulations and their application by our regulators, changes in the scope and cost of Federal Deposit Insurance Corporation (“FDIC”) insurance and other coverage; |
• | regulations and restrictions resulting from our participation in government sponsored programs such as the U.S. Treasury’s Small Business Lending Fund, including potential retroactive changes in such programs; |
• | changes in accounting principles, policies, and guidelines applicable to financial holding companies and banking; |
• | acts of war, terrorism, cyber intrusion, weather, or other catastrophic events beyond our control; and |
• | the ability to manage the risks involved in the foregoing. |
Table 1 Consolidated Average Balances, Interest and Rates (in thousands) | ||||||||||||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
Average Volume | Interest | Average Yield/Rate | Average Volume | Interest | Average Yield/Rate | |||||||||||||||||
Assets | ||||||||||||||||||||||
Investment securities1 | ||||||||||||||||||||||
Taxable | $ | 349,433 | $ | 1,940 | 2.22 | % | $ | 345,108 | $ | 1,853 | 2.15 | % | ||||||||||
Tax exempt2 | 60,972 | 641 | 4.21 | % | 76,433 | 854 | 4.47 | % | ||||||||||||||
Total investment securities | 410,405 | 2,581 | 2.52 | % | 421,541 | 2,707 | 2.57 | % | ||||||||||||||
Federal funds sold | 3,655 | 3 | 0.32 | % | 3,228 | 2 | 0.25 | % | ||||||||||||||
Time and interest bearing deposits in other banks | 76,042 | 97 | 0.50 | % | 56,110 | 35 | 0.25 | % | ||||||||||||||
Other investments | 11,232 | 90 | 3.21 | % | 10,057 | 81 | 3.22 | % | ||||||||||||||
Total loans3 | 1,256,133 | 16,838 | 5.39 | % | 1,312,359 | 18,268 | 5.58 | % | ||||||||||||||
Total earning assets | 1,757,467 | 19,609 | 4.49 | % | 1,803,295 | 21,093 | 4.69 | % | ||||||||||||||
Allowance for loan losses | (19,910 | ) | (15,681 | ) | ||||||||||||||||||
Nonearning assets | 183,447 | 188,960 | ||||||||||||||||||||
Total assets | $ | 1,921,004 | $ | 1,976,574 | ||||||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||||
Total interest bearing deposits | $ | 1,176,387 | $ | 903 | 0.31 | % | $ | 1,181,381 | $ | 921 | 0.31 | % | ||||||||||
Securities sold under repurchase agreements | 85,479 | 233 | 1.10 | % | 84,545 | 242 | 1.15 | % | ||||||||||||||
Federal funds purchased | 2 | — | — | — | — | — | % | |||||||||||||||
Short-term FHLB advances | — | — | — | % | 30,604 | 13 | 0.17 | % | ||||||||||||||
Long-term FHLB advances | 25,687 | 91 | 1.40 | % | 26,114 | 90 | 1.36 | % | ||||||||||||||
Junior subordinated debentures | 22,167 | 170 | 3.03 | % | 22,167 | 151 | 2.69 | % | ||||||||||||||
Total interest bearing liabilities | 1,309,722 | 1,397 | 0.43 | % | 1,344,811 | 1,417 | 0.42 | % | ||||||||||||||
Demand deposits | 386,293 | 411,937 | ||||||||||||||||||||
Other liabilities | 7,877 | 7,714 | ||||||||||||||||||||
Shareholders’ equity | 217,112 | 212,112 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,921,004 | $ | 1,976,574 | ||||||||||||||||||
Net interest income and net interest spread | $ | 18,212 | 4.06 | % | $ | 19,676 | 4.27 | % | ||||||||||||||
Net interest margin | 4.17 | % | 4.38 | % |
1. | Securities classified as available-for-sale are included in average balances. Interest income figures reflect interest earned on such securities. |
2. | Interest income of $221,000 for 2016 and $295,000 for 2015 is added to interest earned on tax-exempt obligations to reflect tax equivalent yields using a tax rate of 35%. |
3. | Interest income includes loan fees of $1,232,000 for 2016 and $1,189,000 for 2015. Nonaccrual loans are included in average balances and income on such loans is recognized on a cash basis. |
Table 2 Consolidated Average Balances, Interest and Rates (in thousands) | ||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||
2016 | 2015 | |||||||||||||||||||||
Average Volume | Interest | Average Yield/Rate | Average Volume | Interest | Average Yield/Rate | |||||||||||||||||
Assets | ||||||||||||||||||||||
Investment securities1 | ||||||||||||||||||||||
Taxable | $ | 354,028 | $ | 3,976 | 2.25 | % | $ | 340,749 | $ | 3,778 | 2.22 | % | ||||||||||
Tax exempt2 | 62,971 | 1,340 | 4.26 | % | 77,683 | 1,746 | 4.50 | % | ||||||||||||||
Total investment securities | 416,999 | 5,316 | 2.55 | % | 418,432 | 5,524 | 2.64 | % | ||||||||||||||
Federal funds sold | 3,749 | 8 | 0.42 | % | 3,521 | 4 | 0.23 | % | ||||||||||||||
Time and interest bearing deposits in other banks | 75,157 | 191 | 0.50 | % | 57,659 | 72 | 0.25 | % | ||||||||||||||
Other investments | 11,210 | 178 | 3.18 | % | 9,906 | 160 | 3.23 | % | ||||||||||||||
Total loans3 | 1,254,438 | 33,961 | 5.44 | % | 1,305,377 | 36,322 | 5.61 | % | ||||||||||||||
Total earning assets | 1,761,553 | 39,654 | 4.53 | % | 1,794,895 | 42,082 | 4.73 | % | ||||||||||||||
Allowance for loan losses | (19,704 | ) | (13,325 | ) | ||||||||||||||||||
Nonearning assets | 184,605 | 189,990 | ||||||||||||||||||||
Total assets | $ | 1,926,454 | $ | 1,971,560 | ||||||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||||
Total interest bearing deposits | $ | 1,178,484 | $ | 1,810 | 0.31 | % | $ | 1,186,704 | $ | 1,868 | 0.32 | % | ||||||||||
Securities sold under repurchase agreements | 85,618 | 466 | 1.09 | % | 82,101 | 472 | 1.16 | % | ||||||||||||||
Federal funds purchased | 1 | — | — | — | — | — | % | |||||||||||||||
Short-term FHLB advances | 11,401 | 23 | 0.40 | % | 27,818 | 21 | 0.15 | % | ||||||||||||||
Long-term FHLB advances | 25,740 | 181 | 1.39 | % | 26,166 | 179 | 1.36 | % | ||||||||||||||
Junior subordinated debentures | 22,167 | 337 | 3.01 | % | 22,167 | 301 | 2.70 | % | ||||||||||||||
Total interest bearing liabilities | 1,323,411 | 2,817 | 0.43 | % | 1,344,956 | 2,841 | 0.43 | % | ||||||||||||||
Demand deposits | 378,966 | 406,035 | ||||||||||||||||||||
Other liabilities | 7,222 | 8,520 | ||||||||||||||||||||
Shareholders’ equity | 216,855 | 212,049 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,926,454 | $ | 1,971,560 | ||||||||||||||||||
Net interest income and net interest spread | $ | 36,837 | 4.10 | % | $ | 39,241 | 4.30 | % | ||||||||||||||
Net interest margin | 4.21 | % | 4.41 | % |
1. | Securities classified as available-for-sale are included in average balances. Interest income figures reflect interest earned on such securities. |
2. | Interest income of $462,000 for 2016 and $603,000 for 2015 is added to interest earned on tax-exempt obligations to reflect tax equivalent yields using a tax rate of 35%. |
3. | Interest income includes loan fees of $2,423,000 for 2016 and $2,551,000 for 2015. Nonaccrual loans are included in average balances and income on such loans is recognized on a cash basis. |
Table 3 Changes in Taxable-Equivalent Net Interest Income (in thousands) | ||||||||||||
Three Months Ended June 30, 2016 compared to June 30, 2015 | ||||||||||||
Total Increase | Change Attributable To | |||||||||||
(Decrease) | Volume | Rates | ||||||||||
Taxable-equivalent earned on: | ||||||||||||
Investment securities | ||||||||||||
Taxable | $ | 87 | $ | 23 | $ | 64 | ||||||
Tax exempt | (213 | ) | (165 | ) | (48 | ) | ||||||
Federal funds sold | 1 | — | 1 | |||||||||
Time and interest bearing deposits in other banks | 62 | 16 | 46 | |||||||||
Other investments | 9 | 9 | — | |||||||||
Loans, including fees | (1,430 | ) | (793 | ) | (637 | ) | ||||||
Total | (1,484 | ) | (910 | ) | (574 | ) | ||||||
Interest paid on: | ||||||||||||
Interest bearing deposits | (18 | ) | (5 | ) | (13 | ) | ||||||
Securities sold under repurchase agreements | (9 | ) | 3 | (12 | ) | |||||||
Federal funds purchased | — | — | — | |||||||||
Short-term FHLB advances | (13 | ) | (13 | ) | — | |||||||
Long-term FHLB advances | 1 | (1 | ) | 2 | ||||||||
Junior subordinated debentures | 19 | — | 19 | |||||||||
Total | (20 | ) | (16 | ) | (4 | ) | ||||||
Taxable-equivalent net interest income | $ | (1,464 | ) | $ | (894 | ) | $ | (570 | ) |
Table 4 Changes in Taxable-Equivalent Net Interest Income (in thousands) | ||||||||||||
Six Months Ended June 30, 2016 compared to June 30, 2015 | ||||||||||||
Total Increase | Change Attributable To | |||||||||||
(Decrease) | Volume | Rates | ||||||||||
Taxable-equivalent earned on: | ||||||||||||
Investment securities | ||||||||||||
Taxable | $ | 198 | $ | 149 | $ | 49 | ||||||
Tax exempt | (406 | ) | (317 | ) | (89 | ) | ||||||
Federal funds sold | 4 | — | 4 | |||||||||
Time and interest bearing deposits in other banks | 119 | 28 | 91 | |||||||||
Other investments | 18 | 21 | (3 | ) | ||||||||
Loans, including fees | (2,361 | ) | (1,398 | ) | (963 | ) | ||||||
Total | (2,428 | ) | (1,517 | ) | (911 | ) | ||||||
Interest paid on: | ||||||||||||
Interest bearing deposits | (58 | ) | (13 | ) | (45 | ) | ||||||
Securities sold under repurchase agreements | (6 | ) | 20 | (26 | ) | |||||||
Federal funds purchased | — | — | — | |||||||||
Short-term FHLB advances | 2 | (17 | ) | 19 | ||||||||
Long-term FHLB advances | 2 | (1 | ) | 3 | ||||||||
Junior subordinated debentures | 36 | — | 36 | |||||||||
Total | (24 | ) | (11 | ) | (13 | ) | ||||||
Taxable-equivalent net interest income | $ | (2,404 | ) | $ | (1,506 | ) | $ | (898 | ) |
Table 5 Non-Interest Income (in thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Service charges on deposit accounts | $ | 2,391 | $ | 2,347 | $ | 4,704 | $ | 4,679 | ||||||||
ATM and debit card income | 1,668 | 1,655 | 3,277 | 3,284 | ||||||||||||
Gain on securities, net | 20 | 1,128 | 20 | 1,243 | ||||||||||||
Mortgage lending | 123 | 145 | 232 | 298 | ||||||||||||
Increase in cash value of life insurance | 74 | 87 | 145 | 178 | ||||||||||||
Income from death benefit on BOLI | — | 160 | — | 160 | ||||||||||||
Credit card income | 89 | 103 | 188 | 208 | ||||||||||||
Letter of credit income | — | 2 | 1 | 89 | ||||||||||||
Other | 508 | 510 | 793 | 839 | ||||||||||||
Total non-interest income | $ | 4,873 | $ | 6,137 | $ | 9,360 | $ | 10,978 |
Table 6 Non-Interest Expense (in thousands) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Salaries and employee benefits | $ | 8,182 | $ | 8,197 | $ | 16,172 | $ | 16,139 | ||||||||
Occupancy expense | 3,667 | 3,865 | 7,264 | 7,550 | ||||||||||||
ATM and debit card | 792 | 693 | 1,577 | 1,356 | ||||||||||||
Legal and professional fees | 436 | 382 | 819 | 727 | ||||||||||||
FDIC premiums | 420 | 331 | 849 | 612 | ||||||||||||
Marketing | 351 | 417 | 732 | 704 | ||||||||||||
Corporate development | 419 | 387 | 754 | 707 | ||||||||||||
Data processing | 478 | 467 | 936 | 924 | ||||||||||||
Printing and supplies | 223 | 255 | 411 | 480 | ||||||||||||
Expenses on ORE, net | 36 | 85 | 230 | 98 | ||||||||||||
Amortization of core deposit intangibles | 276 | 276 | 553 | 553 | ||||||||||||
Other non-interest expense | 1,761 | 1,621 | 3,503 | 3,287 | ||||||||||||
Total non-interest income | $ | 17,041 | $ | 16,976 | $ | 33,800 | $ | 33,137 |
Table 7 Composition of Loans (in thousands) | ||||||||
June 30, 2016 | December 31, 2015 | |||||||
Commercial, financial, and agricultural (C&I) | $ | 456,264 | $ | 454,028 | ||||
Real estate – construction | 96,331 | 74,952 | ||||||
Real estate – commercial (CRE) | 463,142 | 471,141 | ||||||
Real estate – residential | 148,379 | 149,064 | ||||||
Installment loans to individuals | 94,522 | 111,009 | ||||||
Lease financing receivable | 1,641 | 1,968 | ||||||
Other | 2,110 | 1,483 | ||||||
$ | 1,262,389 | $ | 1,263,645 | |||||
Less allowance for loan losses | (21,378 | ) | (19,011 | ) | ||||
Net loans | $ | 1,241,011 | $ | 1,244,634 |
Table 8 Nonperforming Assets and Loans Past Due 90 Days or More and Still Accruing (in thousands) | ||||||||||||
June 30, 2016 | December 31, 2015 | June 30, 2015 | ||||||||||
Nonaccrual loans | $ | 59,865 | $ | 50,051 | $ | 23,873 | ||||||
Loans past due 90 days and over and still accruing | 56 | 147 | 609 | |||||||||
Total nonperforming loans | 59,921 | 50,198 | 24,482 | |||||||||
Other real estate | 2,735 | 4,187 | 4,542 | |||||||||
Other foreclosed assets | 263 | 38 | 38 | |||||||||
Total nonperforming assets | $ | 62,919 | $ | 54,423 | $ | 29,062 | ||||||
Troubled debt restructurings, accruing | $ | 154 | $ | 164 | $ | 21,529 | ||||||
Nonperforming assets to total assets | 3.27 | % | 2.82 | % | 1.49 | % | ||||||
Nonperforming assets to total loans + ORE + other assets repossessed | 4.97 | % | 4.29 | % | 2.24 | % | ||||||
ALL to nonperforming loans | 35.68 | % | 37.87 | % | 65.55 | % | ||||||
ALL to total loans | 1.69 | % | 1.50 | % | 1.24 | % | ||||||
QTD charge-offs | $ | 1,425 | $ | 3,091 | $ | 1,151 | ||||||
QTD recoveries | 156 | 163 | 39 | |||||||||
QTD net charge-offs | $ | 1,269 | $ | 2,928 | $ | 1,112 | ||||||
Annualized net charge-offs to total loans | 0.40 | % | 0.92 | % | 0.34 | % |
Table 9 Reconciliation of Non-GAAP Financial Measures (in thousands except per share data) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Core Net Interest Margin | ||||||||||||||||
Net interest income (FTE) | $ | 18,212 | $ | 19,676 | $ | 36,837 | $ | 39,241 | ||||||||
Less purchase accounting adjustments | (341 | ) | (678 | ) | (906 | ) | (1,143 | ) | ||||||||
Core net interest income, net of purchase accounting adjustments | A | $ | 17,871 | $ | 18,998 | $ | 35,931 | $ | 38,098 | |||||||
Total average earning assets | $ | 1,757,467 | $ | 1,803,295 | $ | 1,761,553 | $ | 1,794,895 | ||||||||
Add average balance of loan valuation discount | 2,931 | 4,888 | 3,127 | 5,033 | ||||||||||||
Average earnings assets, excluding loan valuation discount | B | $ | 1,760,398 | $ | 1,808,183 | $ | 1,764,680 | $ | 1,799,928 | |||||||
Core net interest margin | A/B | 4.08 | % | 4.21 | % | 4.09 | % | 4.27 | % | |||||||
Diluted Earnings Per Share, Operating | ||||||||||||||||
Diluted earnings per share | $ | 0.15 | $ | 0.42 | $ | 0.32 | $ | 0.54 | ||||||||
Effect of net gain on sale of securities, after-tax | — | (0.06 | ) | — | (0.07 | ) | ||||||||||
Effect of income from death benefit on bank owned life insurance | — | (0.01 | ) | — | (0.01 | ) | ||||||||||
Diluted earnings per share, operating | $ | 0.15 | $ | 0.35 | $ | 0.32 | $ | 0.46 | ||||||||
Operating Earnings Available to Common Shareholders | ||||||||||||||||
Net earnings available to common shareholders | $ | 1,682 | $ | 4,927 | $ | 3,604 | $ | 6,245 | ||||||||
Non-interest income adjustments: | ||||||||||||||||
Income from death benefit on bank owned life insurance | — | (160 | ) | — | (160 | ) | ||||||||||
Net gain on sale of securities, after-tax | (13 | ) | (733 | ) | (13 | ) | (808 | ) | ||||||||
Operating earnings available to common shareholders | $ | 1,669 | $ | 4,034 | $ | 3,591 | $ | 5,277 |
Exhibit Number | Document Description |
3.1 | Amended and Restated Articles of Incorporation of MidSouth Bancorp, Inc. (restated solely for purposes of Item 601(b)(3) of Regulation S-K) (filed as Exhibit 3.1 to MidSouth's Annual Report on Form 10-K filed on March 18, 2013 and incorporated herein by reference). |
3.2 | Amended and Restated By-laws of MidSouth Bancorp, Inc. effective as of September 26, 2012 (restated solely for purposes of Item 601(b)(3) of Regulation S-K (filed as Exhibit 3.3 to MidSouth’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 and incorporated herein by reference). |
31.1 | Certification pursuant to Exchange Act Rules 13(a) – 14(a) |
31.2 | Certification pursuant to Exchange Act Rules 13(a) – 14(a) |
32.1 | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
32.2 | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101 | The following financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016, formatted in Extensible Business Reporting Language (“XBRL”): (i) Consolidated Statements of Operations, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows and (iv) Notes to Consolidated Financial Statements.* |
* | Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not to be “filed” or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, or Section 18 of the Securities Act of 1934, as amended, and otherwise are not subject to liability under these sections. |
MidSouth Bancorp, Inc. (Registrant) | |
Date: August 9, 2016 | |
/s/ C. R. Cloutier | |
C. R. Cloutier, President and CEO | |
(Principal Executive Officer) | |
/s/ James R. McLemore | |
James R. McLemore, CFO | |
(Principal Financial Officer) | |
/s/ Teri S. Stelly | |
Teri S. Stelly, Controller (Principal Accounting Officer) |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
b) | designed such internal control over financial reporting, or cause such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluations; 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 |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 9, 2016 | |
/s/ C. R. Cloutier | |
Chief Executive Officer |
a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; |
b) | designed such internal control over financial reporting, or cause such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluations; 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 |
a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 9, 2016 | |
/s/ James R. McLemore | |
Chief Financial Officer |
/s/ C. R. Cloutier |
C.R. Cloutier |
Chief Executive Officer |
August 9, 2016 |
/s/ James R. McLemore |
James R. McLemore |
Chief Financial Officer |
August 9, 2016 |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Aug. 09, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MIDSOUTH BANCORP INC | |
Entity Central Index Key | 0000745981 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,362,705 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 2,493 | $ 5,099 | $ 4,842 | $ 6,590 |
Unrealized gains on securities available-for-sale: | ||||
Unrealized holding gains (losses) arising during the year | 2,060 | (2,971) | 4,862 | (1,270) |
Less: reclassification adjustment for gains on sales of securities available-for-sale | (20) | (1,128) | (20) | (1,243) |
Total other comprehensive income (loss), before tax | 2,040 | (4,099) | 4,842 | (2,513) |
Income tax effect related to items of other comprehensive income (loss) | (714) | 1,435 | (1,694) | 880 |
Total other comprehensive income (loss), net of tax | 1,326 | (2,664) | 3,148 | (1,633) |
Total comprehensive income | $ 3,819 | $ 2,435 | $ 7,990 | $ 4,957 |
Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Dividends on common stock (in dollars per share) | $ 0.09 | $ 0.09 | $ 0.18 | $ 0.18 |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements and notes thereto contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the financial position of MidSouth Bancorp, Inc. (the “Company”) and its subsidiaries as of June 30, 2016 and the results of their operations and their cash flows for the periods presented. The interim financial information should be read in conjunction with the annual consolidated financial statements and the notes thereto included in the Company’s 2015 Annual Report on Form 10-K. The results of operations for the six-month period ended June 30, 2016 are not necessarily indicative of the results to be expected for the entire year. Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Summary of Significant Accounting Policies — The accounting and reporting policies of the Company conform with GAAP and general practices within the banking industry. There have been no material changes or developments in the application of accounting principles or in our evaluation of the accounting estimates and the underlying assumptions or methodologies that we believe to be Critical Accounting Policies and Estimates as disclosed in our 2015 Annual Report on Form 10-K. Recent Accounting Pronouncements — ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities is the first ASU issued under the FASB's financial instruments project. ASU 2016-01 primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The guidance in this ASU requires all equity securities with readily determinable fair values to be measured at fair value on the balance sheet, with changes in fair value recorded through earnings. For financial liabilities that are measured at fair value in accordance with the fair value option, the guidance requires changes in the fair value of a financial liabilities attributable to a change in instrument-specific credit risk to be recorded separately in other comprehensive income. This ASU eliminates the requirement to disclose the methods and significant assumptions used to estimate fair value. It does require public entities to use the exit price when measuring the fair value of financial instruments measured at amortized cost for disclosure purposes In addition, the new guidance requires financial assets and financial liabilities to be presented separately in the notes to the financial statements, grouped by measurement category and form of financial asset. The effective date of this Update is for fiscal years beginning on or after December 15, 2017. The Company is evaluating the impact, if any, that ASU 2016-01 will have on its financial position, results of operations, and its financial statement disclosures. ASU 2016-02, Leases (Topic 842) was issued with the intention of improving financial reporting about leasing transactions. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP - which requires only capital leases to be recognized on the balance sheet - the guidance in the ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The effective date of this Update is for fiscal years beginning on or after December 15, 2018. The Company is evaluating the impact that ASU 2016-02 will have on its financial position, results of operations, and its financial statement disclosures. ASU 2016-09, Compensation - Stock Compensation (Topic 718) was issued as part of the FASB's simplification initiative. Under the new guidance, several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The effective date of this Update is for fiscal years beginning on or after December 15, 2016. The Company is evaluating the impact that ASU 2016-09 will have on its financial position, results of operations, and its financial statement disclosures. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments was issued with the intention of improving financial reporting by requiring timely recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets not recorded at fair value based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU will be required to be implemented through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the amendments are effective. The effective date of this Update is for fiscal years beginning on or after December 15, 2019. The Company is evaluating the impact that ASU 2016-13 will have on its financial position, results of operations, and its financial statement disclosures. |
Investment Securities |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities The portfolio of investment securities consisted of the following (in thousands):
With the exception of two private-label collateralized mortgage obligations (“CMOs”) with a combined balance remaining of $22,000 at June 30, 2016, all of the Company’s CMOs are government-sponsored enterprise (“GSE”) securities. The amortized cost and fair value of debt securities at June 30, 2016 by contractual maturity are shown in the following table (in thousands) with the exception of other asset-backed securities, mortgage-backed securities, CMOs, and the collateralized debt obligation. Expected maturities may differ from contractual maturities for mortgage-backed securities and CMOs because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Details concerning investment securities with unrealized losses are as follows (in thousands):
Management evaluates each quarter whether unrealized losses on securities represent impairment that is other than temporary. For debt securities, the Company considers its intent to sell the securities or if it is more likely than not the Company will be required to sell the securities. If such impairment is identified, based upon the intent to sell or the more likely than not threshold, the carrying amount of the security is reduced to fair value with a charge to earnings. Upon the result of the aforementioned review, management then reviews for potential other than temporary impairment based upon other qualitative factors. In making this evaluation, management considers changes in market rates relative to those available when the security was acquired, changes in market expectations about the timing of cash flows from securities that can be prepaid, performance of the debt security, and changes in the market’s perception of the issuer’s financial health and the security’s credit quality. If determined that a debt security has incurred other than temporary impairment, then the amount of the credit related impairment is determined. If a credit loss is evident, the amount of the credit loss is charged to earnings and the non-credit related impairment is recognized through other comprehensive income. As of June 30, 2016, 17 securities had unrealized losses totaling 0.63% of the individual securities’ amortized cost basis and 0.07% of the Company’s total amortized cost basis. Of the 17 securities, 10 had been in an unrealized loss position for over twelve months at June 30, 2016. These 10 securities had an amortized cost basis and unrealized loss of $26.1 million and $246,000, respectively. The unrealized losses on debt securities at June 30, 2016 resulted from changing market interest rates over the yields available at the time the underlying securities were purchased. Management identified no impairment related to credit quality. At June 30, 2016, management had the intent and ability to hold impaired securities and no impairment was evaluated as other than temporary. As a result, no other than temporary impairment losses were recognized during the three months ended June 30, 2016. During the six months ended June 30, 2016, the Company sold 2 securities classified as available-for-sale at a gross gain of $20,000. During the six months ended June 30, 2015, the Company sold 21 securities classified as available-for-sale at a net gain of $1.2 million. Of the 21 securities sold, 11 were sold with gains totaling $1.4 million and 10 securities were sold at a loss of $135,000. Securities with an aggregate carrying value of approximately $307.2 million and $285.4 million at June 30, 2016 and December 31, 2015, respectively, were pledged to secure public funds on deposit and for other purposes required or permitted by law. |
Credit Quality of Loans and Allowance for Loan Losses |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Quality of Loans and Allowance for Loan Losses | Credit Quality of Loans and Allowance for Loan Losses The loan portfolio consisted of the following (in thousands):
The Company monitors loan concentrations and evaluates individual customer and aggregate industry leverage, profitability, risk rating distributions, and liquidity for each major standard industry classification segment. At June 30, 2016, one industry segment concentration, the oil and gas industry, constituted more than 10% of the loan portfolio. The Company’s exposure in the oil and gas industry, including related service and manufacturing industries, totaled approximately $249.8 million, or 19.8% of total loans. Additionally, the Company’s exposure to loans secured by commercial real estate is monitored. At June 30, 2016, loans secured by commercial real estate (including commercial construction, farmland and multifamily loans) totaled approximately $540.0 million. Of the $540.0 million, $463.1 million represent CRE loans, 55% of which are secured by owner-occupied commercial properties. Of the $540.0 million in loans secured by commercial real estate, $27.3 million, or 5.1%, were on nonaccrual status at June 30, 2016. Allowance for Loan Losses The allowance for loan losses is a valuation account available to absorb probable losses on loans. All losses are charged to the allowance for loan losses when the loss actually occurs or when a determination is made that a loss is likely to occur. Recoveries are credited to the allowance for loan losses at the time of recovery. Quarterly, the probable level of losses in the existing portfolio is estimated through consideration of various factors. Based on these estimates, the allowance for loan losses is increased by charges to earnings and decreased by charge‑offs (net of recoveries). The allowance is composed of general reserves and specific reserves. General reserves are determined by applying loss percentages to segments of the portfolio. The loss percentages are based on each segment’s historical loss experience, generally over the past twelve to eighteen months, and adjustment factors derived from conditions in the Company’s internal and external environment. All loans considered to be impaired are evaluated on an individual basis to determine specific reserve allocations in accordance with GAAP. Loans for which specific reserves are provided are excluded from the calculation of general reserves. Loans acquired in business combinations are initially recorded at fair value, which includes an estimate of credit losses expected to be realized over the remaining lives of the loans, and therefore no corresponding allowance for loan losses is recorded for these loans at acquisition. Methods utilized to estimate any subsequently required allowance for loan losses for acquired loans not deemed credit-impaired at acquisition are similar to originated loans; however, the estimate of loss is based on the unpaid principal balance and then compared to any remaining unaccreted purchase discount. To the extent that the calculated loss is greater than the remaining unaccreted purchase discount, an allowance is recorded for such difference. The Company has an internal loan review department that is independent of the lending function to challenge and corroborate the loan grade assigned by the lender and to provide additional analysis in determining the adequacy of the allowance for loan losses. A rollforward of the activity within the allowance for loan losses by loan type and recorded investment in loans for the six months ended June 30, 2016 and 2015 is as follows (in thousands):
Non-Accrual and Past Due Loans Loans are considered past due if the required principal and interest payment have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the probability of collection of interest is deemed insufficient to warrant further accrual. For loans placed on non-accrual status, the accrual of interest is discontinued and subsequent payments received are applied to the principal balance. Interest income is recorded after principal has been satisfied and as payments are received. Non-accrual loans may be returned to accrual status if all principal and interest amounts contractually owed are reasonably assured of repayment within a reasonable period and there is a period of at least six months to one year of repayment performance by the borrower depending on the contractual payment terms. An age analysis of past due loans (including both accruing and non-accruing loans) is as follows (in thousands):
Non-accrual loans are as follows (in thousands):
The amount of interest that would have been recorded on non-accrual loans, had the loans not been classified as non-accrual, totaled approximately $1.6 million and $851,000 for the six months ended June 30, 2016 and 2015, respectively. Interest actually received on non-accrual loans subsequent to their transfer to non-accrual status totaled at June 30, 2016 and 2015 was $70,000 and $13,000, respectively. Impaired Loans Loans are considered impaired when, based upon current information, it is probable the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans classified as special mention, substandard, or doubtful, based on credit risk rating factors, are reviewed to determine whether impairment testing is appropriate. An allowance for each impaired loan is calculated based on the present value of expected future cash flows discounted at the loan’s effective interest rate or at the loan’s observable market price or the fair value of the collateral if the loan is collaterally dependent. All impaired loans are reviewed, at a minimum, on a quarterly basis. Existing valuations are reviewed to determine if additional discounts or new appraisals are required. After this review, when comparing the resulting collateral valuation to the outstanding loan balance, if the discounted collateral value exceeds the loan balance no specific allocation is reserved. Acquired impaired loans are generally not subject to individual evaluation for impairment and are not reported with impaired loans or troubled debt restructurings, even if they would otherwise qualify for such treatment. Loans that are individually evaluated for impairment are as follows (in thousands):
Credit Quality The Company manages credit risk by observing written underwriting standards and lending policy established by the Board of Directors and management to govern all lending activities. The risk management program requires that each individual loan officer review his or her portfolio on a quarterly basis and assign recommended credit ratings on each loan. These efforts are supplemented by independent reviews performed by a loan review officer and other validations performed by the internal audit department. The results of the reviews are reported directly to the Audit Committee of the Board of Directors. Loans can be classified into the following three risk rating grades: pass, special mention, and substandard/doubtful. Factors considered in determining a risk rating grade include debt service capacity, capital structure/liquidity, management, collateral quality, industry risk, company trends/operating performance, repayment source, revenue diversification/customer concentration, quality of financial information, and financing alternatives. Pass grade signifies the highest quality of loans to loans with reasonable credit risk, which may include borrowers with marginally adequate financial performance, but have the ability to repay the debt. Special mention loans have potential weaknesses that warrant extra attention from the loan officer and other management personnel, but still have the ability to repay the debt. Substandard classification includes loans with well-defined weaknesses with risk of potential loss. Loans classified as doubtful are considered to have little recovery value and are charged off. The following tables present the classes of loans by risk rating (in thousands):
Troubled Debt Restructurings A troubled debt restructuring (“TDR”) is a restructuring of a debt made by the Company to a debtor for economic or legal reasons related to the debtor’s financial difficulties that it would not otherwise consider. The Company grants the concession in an attempt to protect as much of its investment as possible. Information about the Company’s TDRs is as follows (in thousands):
During the three months ended June 30, 2016, there were no loans identified as a TDR, and there were no defaults on any loans that were modified as TDRs during the preceding twelve months. During the three months ended June 30, 2015, there was one loan relationship with a pre-modification balance of $21.4 million identified as a TDR after conversion of the loans to interest only for a limited amount of time, and there were no defaults on any loans that were modified as TDRs during the preceding twelve months. During the six months ended June 30, 2016, there was one loan relationship with a pre-modification balance of $5.5 million identified as a TDR after conversion of the loans to interest only for a limited amount of time. Subsequent to its conversion to TDR status, this one TDR totaling $5.5 million defaulted on the modified terms during the six months ended June 30, 2016. During the six months ended June 30, 2015, there was one loan relationship with a pre-modification balance of $21.4 million identified as a TDR after conversion of the loans to interest only for a limited amount of time, and there were no defaults on any loans that were modified as TDRs during the preceding twelve months. For purposes of the determination of an allowance for loan losses on these TDRs, as an identified TDR, the Company considers a loss probable on the loan and, as a result is reviewed for specific impairment in accordance with the Company’s allowance for loan loss methodology. If it is determined losses are probable on such TDRs, either because of delinquency or other credit quality indicator, the Company establishes specific reserves for these loans. As of June 30, 2016, there were no commitments to lend additional funds to debtors owing sums to the Company whose terms have been modified in TDRs. |
Intangibles |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangibles | Intangibles A summary of core deposit intangible assets as of June 30, 2016 and December 31, 2015 is as follows (in thousands):
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Other Comprehensive Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income | Other Comprehensive Income (Loss) The following is a summary of the tax effects allocated to each component of other comprehensive income (loss) (in thousands):
The reclassifications out of accumulated other comprehensive income into net income are presented below (in thousands):
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Earnings Per Common Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share Following is a summary of the information used in the computation of earnings per common share (in thousands):
Following is a summary of the securities that were excluded from the computation of diluted earnings per share because the effects of the shares were anti-dilutive (in thousands):
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Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | Fair Value Measurement The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Following is a description of valuation methodologies used for assets and liabilities which are either recorded or disclosed at fair value. Cash and Due From Banks, Interest-Bearing Deposits in Banks and Federal Funds Sold—The carrying value of these short-term instruments is a reasonable estimate of fair value. Securities Available-for-Sale—Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter market funds. Securities are classified as Level 2 within the valuation hierarchy when the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things. Level 2 inputs are used to value U.S. Agency securities, mortgage-backed securities, asset-backed securities, municipal securities, single issue trust preferred securities, certain pooled trust preferred securities, collateralized debt obligations and certain equity securities that are not actively traded. Securities Held-to-Maturity—The fair value of securities held-to-maturity is estimated using the same measurement techniques as securities available-for-sale. Other Investments—The carrying value of other investments is a reasonable estimate of fair value. Loans—For disclosure purposes, the fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value. The Company does not record loans at fair value on a recurring basis. No adjustment to fair value is taken related to illiquidity discounts. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management uses one of three methods to measure impairment, which, include collateral value, market value of similar debt, and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. Impaired loans where an allowance is established based on the fair value of collateral or where the loan balance has been charged down to fair value require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and adjusts the appraisal value by taking an additional discount for market conditions and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. For non-performing loans, collateral valuations currently in file are reviewed for acceptability in terms of timeliness and applicability. Although each determination is made based on the facts and circumstances of each credit, generally valuations are no longer considered acceptable when there has been physical deterioration of the property from when it was last appraised, or there has been a significant change in the underlying assumptions of the appraisal. If the valuation is deemed to be unacceptable, a new appraisal is ordered. New appraisals are typically received within 4-6 weeks. While awaiting new appraisals, the valuation in the file is utilized, net of discounts. Discounts are derived from available relevant market data, selling costs, taxes, and insurance. Any perceived collateral deficiency utilizing the discounted value is specifically reserved (as required by ASC Topic 310) until the new appraisal is received or charged off. Thus, provisions or charge-offs are recognized in the period the credit is identified as non-performing. The following sources are utilized to set appropriate discounts: in-market real estate agents, current local sales data, bank history for devaluation of similar property, Sheriff’s valuations and buy/sell contracts. If a real estate agent is used to market and sell the property, values are discounted 10% for selling costs. Additional discounts may be applied if research from the above sources indicates a discount is appropriate given devaluation of similar property from the time of the initial valuation. Other Real Estate—Other real estate (“ORE”) properties are adjusted to fair value upon transfer of the loans to other real estate, and annually thereafter to insure other real estate assets are carried at the lower of carrying value or fair value. Exceptions to obtaining initial appraisals are properties where a buy/sell agreement exists for the loan value or greater, or where a Sheriff’s valuation has been received for properties liquidated through a Sheriff sale. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the ORE as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and adjusts the appraisal value by taking an additional discount for market conditions and there is no observable market prices, the Company records the ORE asset as nonrecurring Level 3. Cash Surrender Value of Life Insurance Policies—Fair value for life insurance cash surrender value is based on cash surrender values indicated by the insurance companies. Deposits—The fair value of demand deposits, savings accounts, NOW accounts, and money market deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. The estimated fair value does not include customer related intangibles. Securities Sold Under Agreements to Repurchase—The fair value approximates the carrying value of securities sold under agreements to repurchase due to their short-term nature. Short-term Federal Home Loan Bank Advances—The fair value approximates the carrying value of short-term FHLB advances due to their short-term nature. Long-term Federal Home Loan Bank Advances—The fair value of long-term FHLB advances is estimated using a discounted cash flow analysis that applies interest rates currently being offered on similar types of borrowings with similar terms. Junior Subordinated Debentures—For junior subordinated debentures that bear interest on a floating basis, the carrying amount approximates fair value. For junior subordinated debentures that bear interest on a fixed rate basis, the fair value is estimated using a discounted cash flow analysis that applies interest rates currently being offered on similar types of borrowings. Commitments to Extend Credit, Standby Letters of Credit and Credit Card Guarantees—Because commitments to extend credit and standby letters of credit are generally short-term and made using variable rates, the carrying value and estimated fair value associated with these instruments are immaterial. Assets Recorded at Fair Value The table below presents information about certain assets and liabilities measured at fair value on a recurring basis (in thousands):
Certain assets and liabilities are measured at fair value on a nonrecurring basis and are included in the table below (in thousands). Impaired loans are Level 2 assets measured using appraisals from external parties of the collateral less any prior liens. Other real estate properties are also Level 2 assets measured using appraisals from external parties.
Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows at June 30, 2016 and December 31, 2015 (in thousands):
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Subsequent Events Subsequent Events |
6 Months Ended |
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Jun. 30, 2016 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | 8. Subsequent Events On August 8, 2016, the Company issued a press release announc |
Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies — The accounting and reporting policies of the Company conform with GAAP and general practices within the banking industry. There have been no material changes or developments in the application of accounting principles or in our evaluation of the accounting estimates and the underlying assumptions or methodologies that we believe to be Critical Accounting Policies and Estimates as disclosed in our 2015 Annual Report on Form 10-K. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities is the first ASU issued under the FASB's financial instruments project. ASU 2016-01 primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The guidance in this ASU requires all equity securities with readily determinable fair values to be measured at fair value on the balance sheet, with changes in fair value recorded through earnings. For financial liabilities that are measured at fair value in accordance with the fair value option, the guidance requires changes in the fair value of a financial liabilities attributable to a change in instrument-specific credit risk to be recorded separately in other comprehensive income. This ASU eliminates the requirement to disclose the methods and significant assumptions used to estimate fair value. It does require public entities to use the exit price when measuring the fair value of financial instruments measured at amortized cost for disclosure purposes In addition, the new guidance requires financial assets and financial liabilities to be presented separately in the notes to the financial statements, grouped by measurement category and form of financial asset. The effective date of this Update is for fiscal years beginning on or after December 15, 2017. The Company is evaluating the impact, if any, that ASU 2016-01 will have on its financial position, results of operations, and its financial statement disclosures. ASU 2016-02, Leases (Topic 842) was issued with the intention of improving financial reporting about leasing transactions. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP - which requires only capital leases to be recognized on the balance sheet - the guidance in the ASU will require both types of leases to be recognized on the balance sheet. The ASU also will require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative requirements, providing additional information about the amounts recorded in the financial statements. The effective date of this Update is for fiscal years beginning on or after December 15, 2018. The Company is evaluating the impact that ASU 2016-02 will have on its financial position, results of operations, and its financial statement disclosures. ASU 2016-09, Compensation - Stock Compensation (Topic 718) was issued as part of the FASB's simplification initiative. Under the new guidance, several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. The effective date of this Update is for fiscal years beginning on or after December 15, 2016. The Company is evaluating the impact that ASU 2016-09 will have on its financial position, results of operations, and its financial statement disclosures. ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments was issued with the intention of improving financial reporting by requiring timely recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The ASU requires the measurement of all expected credit losses for financial assets not recorded at fair value based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU will be required to be implemented through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the amendments are effective. The effective date of this Update is for fiscal years beginning on or after December 15, 2019. The Company is evaluating the impact that ASU 2016-13 will have on its financial position, results of operations, and its financial statement disclosures. |
Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-Sale Investment Securities | The portfolio of investment securities consisted of the following (in thousands):
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Schedule of Held-to-Maturity Securities |
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Summary of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities at June 30, 2016 by contractual maturity are shown in the following table (in thousands) with the exception of other asset-backed securities, mortgage-backed securities, CMOs, and the collateralized debt obligation. Expected maturities may differ from contractual maturities for mortgage-backed securities and CMOs because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
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Schedule of Investment Securities with Unrealized Losses | Details concerning investment securities with unrealized losses are as follows (in thousands):
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Credit Quality of Loans and Allowance for Loan Losses (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Loans Receivable | The loan portfolio consisted of the following (in thousands):
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Roll Forward of Activity in Allowance for Loan Losses | A rollforward of the activity within the allowance for loan losses by loan type and recorded investment in loans for the six months ended June 30, 2016 and 2015 is as follows (in thousands):
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Age Analysis of Past Due Loans by Class of Loans | An age analysis of past due loans (including both accruing and non-accruing loans) is as follows (in thousands):
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Schedule of Loans on Nonaccrual Status | Non-accrual loans are as follows (in thousands):
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Schedule of Loans Evaluated for Impairment | Loans that are individually evaluated for impairment are as follows (in thousands):
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Credit Quality Indicators by Class of Loans | The following tables present the classes of loans by risk rating (in thousands):
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Summary of Troubled Debt Restructurings | Information about the Company’s TDRs is as follows (in thousands):
|
Intangibles (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Core Deposit Intangible Assets | A summary of core deposit intangible assets as of June 30, 2016 and December 31, 2015 is as follows (in thousands):
|
Other Comprehensive Income (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Tax Effects | The following is a summary of the tax effects allocated to each component of other comprehensive income (loss) (in thousands):
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Reclassification Out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive income into net income are presented below (in thousands):
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Earnings Per Common Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Earnings per Common Share | Following is a summary of the information used in the computation of earnings per common share (in thousands):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Following is a summary of the securities that were excluded from the computation of diluted earnings per share because the effects of the shares were anti-dilutive (in thousands):
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Fair Value Measurement (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The table below presents information about certain assets and liabilities measured at fair value on a recurring basis (in thousands):
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Schedule of Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | Certain assets and liabilities are measured at fair value on a nonrecurring basis and are included in the table below (in thousands). Impaired loans are Level 2 assets measured using appraisals from external parties of the collateral less any prior liens. Other real estate properties are also Level 2 assets measured using appraisals from external parties.
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Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of the Company’s financial instruments are as follows at June 30, 2016 and December 31, 2015 (in thousands):
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Credit Quality of Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
contract
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Jun. 30, 2015
contract
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Jun. 30, 2016
USD ($)
contract
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Jun. 30, 2015
USD ($)
contract
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Dec. 31, 2015
USD ($)
|
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Financing Receivable, Modifications [Line Items] | |||||
Current | $ 154,000 | $ 154,000 | $ 16,000 | ||
Past Due Greater Than 30 Days | 0 | 0 | 148,000 | ||
Nonaccrual TDRs | 26,224,000 | 26,224,000 | 20,865,000 | ||
Total TDRs | $ 26,378,000 | $ 26,378,000 | 21,029,000 | ||
Pre-modified contracts identified as TDRs (contracts) | contract | 0 | 1 | 1 | 1 | |
Number of TDR defaulted (contracts) | contract | 0 | 0 | 1 | 0 | |
TDRs defaulted, amount | $ 5,500,000 | ||||
Pre-modification balance identified as TDR | 5,500,000 | $ 21,400,000 | |||
Commitments to lend additional funds | $ 0 | 0 | |||
Commercial, financial and agricultural | |||||
Financing Receivable, Modifications [Line Items] | |||||
Current | 14,000 | 14,000 | 16,000 | ||
Past Due Greater Than 30 Days | 0 | 0 | 0 | ||
Nonaccrual TDRs | 24,652,000 | 24,652,000 | 20,865,000 | ||
Total TDRs | 24,666,000 | 24,666,000 | 20,881,000 | ||
Real estate – commercial | |||||
Financing Receivable, Modifications [Line Items] | |||||
Current | 140,000 | 140,000 | 0 | ||
Past Due Greater Than 30 Days | 0 | 0 | 148,000 | ||
Nonaccrual TDRs | 1,572,000 | 1,572,000 | 0 | ||
Total TDRs | $ 1,712,000 | $ 1,712,000 | $ 148,000 |
Intangibles (Details) - Core Deposit Intangible Assets - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 11,674 | $ 11,674 |
Less accumulated amortization | (6,499) | (5,946) |
Net carrying amount | $ 5,175 | $ 5,728 |
Other Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain on sale of securities, net | $ (20) | $ (1,128) | $ (20) | $ (1,243) |
Tax expense | 7 | 395 | 7 | 435 |
Reclassifications Out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Gain on sale of securities, net | (20) | (1,128) | (20) | (1,243) |
Tax expense | 7 | 395 | 7 | 435 |
Net earnings | $ (13) | $ (733) | $ (13) | $ (808) |
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