☒ | 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 | ☐Smaller reporting company | ☐Emerging growth 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) | ||||||||
March 31, 2017 (unaudited) | December 31, 2016 (audited) | |||||||
Assets | ||||||||
Cash and due from banks, including required reserves of $6,561 and $6,669, respectively | $ | 32,188 | $ | 31,687 | ||||
Interest-bearing deposits in banks | 45,183 | 47,091 | ||||||
Federal funds sold | 1,100 | 3,450 | ||||||
Securities available-for-sale, at fair value (cost of $359,532 at March 31, 2017 and $344,416 at December 31, 2016) | 357,803 | 341,873 | ||||||
Securities held-to-maturity (fair value of $91,767 at March 31, 2017 and $98,261 at December 31, 2016) | 91,242 | 98,211 | ||||||
Other investments | 11,362 | 11,355 | ||||||
Loans | 1,272,000 | 1,284,082 | ||||||
Allowance for loan losses | (24,578 | ) | (24,372 | ) | ||||
Loans, net | 1,247,422 | 1,259,710 | ||||||
Bank premises and equipment, net | 68,216 | 68,954 | ||||||
Accrued interest receivable | 7,516 | 7,576 | ||||||
Goodwill | 42,171 | 42,171 | ||||||
Intangibles | 4,345 | 4,621 | ||||||
Cash surrender value of life insurance | 14,398 | 14,335 | ||||||
Other real estate | 1,643 | 2,175 | ||||||
Other assets | 10,350 | 10,131 | ||||||
Total assets | $ | 1,934,939 | $ | 1,943,340 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities: | ||||||||
Deposits: | ||||||||
Non-interest-bearing | $ | 426,998 | $ | 414,921 | ||||
Interest-bearing | 1,145,946 | 1,164,509 | ||||||
Total deposits | 1,572,944 | 1,579,430 | ||||||
Securities sold under agreements to repurchase | 89,807 | 94,461 | ||||||
Long-term Federal Home Loan Bank advances | 25,318 | 25,424 | ||||||
Junior subordinated debentures | 22,167 | 22,167 | ||||||
Other liabilities | 8,641 | 7,482 | ||||||
Total liabilities | 1,718,877 | 1,728,964 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Series B Preferred stock, no par value; 5,000,000 shares authorized, 32,000 shares issued and outstanding at March 31, 2017 and December 31, 2016 | 32,000 | 32,000 | ||||||
Series C Preferred stock, no par value; 100,000 shares authorized, 91,098 shares issued and outstanding at March 31, 2017 and December 31, 2016 | 9,110 | 9,110 | ||||||
Common stock, $0.10 par value; 30,000,000 shares authorized, 11,383,914 and 11,362,716 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 1,138 | 1,136 | ||||||
Additional paid-in capital | 111,538 | 111,166 | ||||||
Unearned ESOP shares | (1,124 | ) | (1,233 | ) | ||||
Accumulated other comprehensive loss | (473 | ) | (1,010 | ) | ||||
Retained earnings | 63,873 | 63,207 | ||||||
Total shareholders’ equity | 216,062 | 214,376 | ||||||
Total liabilities and shareholders’ equity | $ | 1,934,939 | $ | 1,943,340 |
MidSouth Bancorp, Inc. and Subsidiaries Consolidated Statements of Earnings (unaudited) (in thousands, except per share data) | ||||||||
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Interest income: | ||||||||
Loans, including fees | $ | 16,622 | $ | 16,866 | ||||
Securities and other investments: | ||||||||
Taxable | 2,327 | 2,036 | ||||||
Nontaxable | 407 | 458 | ||||||
Federal funds sold | 6 | 5 | ||||||
Time and interest bearing deposits in other banks | 85 | 94 | ||||||
Other investments | 84 | 88 | ||||||
Total interest income | 19,531 | 19,547 | ||||||
Interest expense: | ||||||||
Deposits | 935 | 907 | ||||||
Securities sold under agreements to repurchase | 234 | 233 | ||||||
Other borrowings and payables | 88 | 113 | ||||||
Junior subordinated debentures | 208 | 167 | ||||||
Total interest expense | 1,465 | 1,420 | ||||||
Net interest income | 18,066 | 18,127 | ||||||
Provision for loan losses | 2,800 | 2,800 | ||||||
Net interest income after provision for loan losses | 15,266 | 15,327 | ||||||
Non-interest income: | ||||||||
Service charges on deposits | 2,480 | 2,313 | ||||||
Gain on sale of securities, net | 6 | — | ||||||
ATM and debit card income | 1,703 | 1,609 | ||||||
Other charges and fees | 855 | 822 | ||||||
Total non-interest income | 5,044 | 4,744 | ||||||
Non-interest expenses: | ||||||||
Salaries and employee benefits | 8,689 | 7,990 | ||||||
Occupancy expense | 3,624 | 3,597 | ||||||
ATM and debit card expense | 721 | 785 | ||||||
Data processing | 621 | 458 | ||||||
FDIC insurance | 397 | 429 | ||||||
Legal and professional fees | 385 | 383 | ||||||
Other | 2,793 | 3,117 | ||||||
Total non-interest expenses | 17,230 | 16,759 | ||||||
Income before income taxes | 3,080 | 3,312 | ||||||
Income tax expense | 589 | 963 | ||||||
Net earnings | 2,491 | 2,349 | ||||||
Dividends on preferred stock | 811 | 427 | ||||||
Net earnings available to common shareholders | $ | 1,680 | $ | 1,922 | ||||
Earnings per share: | ||||||||
Basic | $ | 0.15 | $ | 0.17 | ||||
Diluted | $ | 0.15 | $ | 0.17 | ||||
Weighted average number of shares outstanding: | ||||||||
Basic | 11,264 | 11,262 | ||||||
Diluted | 11,282 | 11,262 | ||||||
Dividends declared per common share | $ | 0.09 | $ | 0.09 |
MidSouth Bancorp, Inc. and Subsidiaries Consolidated Statements of Comprehensive Income (unaudited) (in thousands) | ||||||||
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Net earnings | $ | 2,491 | $ | 2,349 | ||||
Other comprehensive income, net of tax: | ||||||||
Unrealized gains on securities available-for-sale: | ||||||||
Unrealized holding gains arising during the year | 820 | 2,802 | ||||||
Less: reclassification adjustment for gains on sales of securities available-for-sale | (6 | ) | — | |||||
Unrealized gains on securities available-for-sale | 814 | 2,802 | ||||||
Fair value of derivative instruments designated as cash flow hedges: | ||||||||
Change in fair value of derivative instruments designated as cash flow hedges during the period | 13 | — | ||||||
Total other comprehensive income, before tax | 827 | 2,802 | ||||||
Income tax effect related to items of other comprehensive income | (290 | ) | (980 | ) | ||||
Total other comprehensive income, net of tax | 537 | 1,822 | ||||||
Total comprehensive income | $ | 3,028 | $ | 4,171 |
MidSouth Bancorp, Inc. and Subsidiaries Consolidated Statement of Shareholders’ Equity (unaudited) For the Three Months Ended March 31, 2017 (in thousands, except share and per share data) | ||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Additional Paid-in Capital | Unearned ESOP Shares | Accumulated Other Comprehensive Loss | Retained Earnings | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Total | ||||||||||||||||||||||||||||||
Balance - December 31, 2016 | 123,098 | $ | 41,110 | 11,362,716 | $ | 1,136 | $ | 111,166 | $ | (1,233 | ) | $ | (1,010 | ) | $ | 63,207 | $ | 214,376 | ||||||||||||||||
Net earnings | — | — | — | — | — | — | — | 2,491 | 2,491 | |||||||||||||||||||||||||
Dividends on Series B and Series C preferred stock | — | — | — | — | — | — | — | (811 | ) | (811 | ) | |||||||||||||||||||||||
Dividends on common stock, $0.09 per share | — | — | — | — | — | — | — | (1,014 | ) | (1,014 | ) | |||||||||||||||||||||||
ESOP shares released for allocation | — | — | — | — | 27 | 109 | — | — | 136 | |||||||||||||||||||||||||
Exercise of stock options | — | — | 20,498 | 2 | 264 | — | — | — | 266 | |||||||||||||||||||||||||
Vested restricted stock | — | — | 700 | — | — | — | — | — | — | |||||||||||||||||||||||||
Stock option and restricted stock compensation expense | — | — | — | — | 81 | — | — | — | 81 | |||||||||||||||||||||||||
Change in accumulated other comprehensive income | — | — | — | — | — | — | 537 | — | 537 | |||||||||||||||||||||||||
Balance – March 31, 2017 | 123,098 | $ | 41,110 | 11,383,914 | $ | 1,138 | $ | 111,538 | $ | (1,124 | ) | $ | (473 | ) | $ | 63,873 | $ | 216,062 |
MidSouth Bancorp, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) (in thousands) | ||||||||
For the Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 2,491 | $ | 2,349 | ||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Depreciation | 1,493 | 1,512 | ||||||
Amortization (accretion) of purchase accounting adjustments | 2 | (288 | ) | |||||
Provision for loan losses | 2,800 | 2,800 | ||||||
Deferred tax benefit | (222 | ) | (503 | ) | ||||
Amortization of premiums on securities, net | 686 | 681 | ||||||
Stock-based compensation expense | 81 | 97 | ||||||
Tax benefit from exercise of stock options and vesting of restricted common stock | 10 | — | ||||||
Tax benefit resulting from distribution from Directors Deferred Compensation Plan | 300 | 39 | ||||||
Tax benefit resulting from dividends paid to the ESOP | 23 | 87 | ||||||
Excess of market value over book value of ESOP shares released | 27 | (36 | ) | |||||
Net gain on sale of investment securities | (6 | ) | — | |||||
Net (gain) loss on sale of other real estate owned | (8 | ) | 24 | |||||
Net write down of other real estate owned | 23 | 120 | ||||||
Net gain on sale/disposal of premises and equipment | (12 | ) | (14 | ) | ||||
Change in accrued interest receivable | 60 | (135 | ) | |||||
Change in accrued interest payable | (11 | ) | (9 | ) | ||||
Change in other assets & other liabilities, net | 510 | 454 | ||||||
Net cash provided by operating activities | 8,247 | 7,178 | ||||||
Cash flows from investing activities: | ||||||||
Proceeds from maturities and calls of securities available-for-sale | 14,631 | 18,379 | ||||||
Proceeds from maturities and calls of securities held-to-maturity | 5,865 | 2,919 | ||||||
Proceeds from sale of securities available-for-sale | 6,462 | — | ||||||
Proceeds from sale of security held-to-maturity | 887 | — | ||||||
Purchases of securities available-for-sale | (36,672 | ) | — | |||||
Purchases of other investments | (7 | ) | (7 | ) | ||||
Net change in loans | 9,687 | 12,293 | ||||||
Purchases of premises and equipment | (887 | ) | (915 | ) | ||||
Proceeds from sale of premises and equipment | 144 | 40 | ||||||
Proceeds from sale of other real estate owned | 612 | 245 | ||||||
Net cash provided by investing activities | 722 | 32,954 | ||||||
Cash flows from financing activities: | ||||||||
Change in deposits | (6,486 | ) | 7,366 | |||||
Change in securities sold under agreements to repurchase | (4,654 | ) | 1,922 | |||||
Borrowings on Federal Home Loan Bank advances | — | 25,000 | ||||||
Repayments of Federal Home Loan Bank advances | (17 | ) | (50,017 | ) | ||||
Proceeds from exercise of stock options | 266 | — | ||||||
Payment of dividends on preferred stock | (811 | ) | (171 | ) | ||||
Payment of dividends on common stock | (1,024 | ) | (1,023 | ) | ||||
Net cash used by financing activities | (12,726 | ) | (16,923 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (3,757 | ) | 23,209 | |||||
Cash and cash equivalents, beginning of period | 82,228 | 89,201 | ||||||
Cash and cash equivalents, end of period | $ | 78,471 | $ | 112,410 | ||||
Supplemental cash flow information: | ||||||||
Interest paid | $ | 1,476 | $ | 1,429 | ||||
Noncash investing and financing activities: | ||||||||
Transfer of loans to other real estate | 95 | 110 | ||||||
Change in accrued common stock dividends | 1 | — | ||||||
Change in accrued preferred stock dividends | — | 256 | ||||||
Net change in loan to ESOP | 109 | (191 | ) |
MidSouth Bancorp, Inc. and Subsidiaries Notes to Interim Consolidated Financial Statements March 31, 2017 (Unaudited) |
March 31, 2017 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available-for-sale: | ||||||||||||||||
Obligations of state and political subdivisions | $ | 26,465 | $ | 114 | $ | 968 | $ | 25,611 | ||||||||
GSE mortgage-backed securities | 78,554 | 1,618 | 146 | 80,026 | ||||||||||||
Collateralized mortgage obligations: residential | 230,413 | 282 | 3,181 | 227,514 | ||||||||||||
Collateralized mortgage obligations: commercial | 3,027 | — | 36 | 2,991 | ||||||||||||
Mutual funds | 2,100 | — | 41 | 2,059 | ||||||||||||
Corporate debt securities | 18,973 | 629 | — | 19,602 | ||||||||||||
$ | 359,532 | $ | 2,643 | $ | 4,372 | $ | 357,803 | |||||||||
December 31, 2016 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Available-for-sale: | ||||||||||||||||
Obligations of state and political subdivisions | $ | 29,935 | $ | 226 | $ | 1,020 | $ | 29,141 | ||||||||
GSE mortgage-backed securities | 72,144 | 1,736 | 302 | 73,578 | ||||||||||||
Collateralized mortgage obligations: residential | 223,602 | 206 | 3,606 | 220,202 | ||||||||||||
Collateralized mortgage obligations: commercial | 3,135 | — | 53 | 3,082 | ||||||||||||
Mutual funds | 2,100 | — | 41 | 2,059 | ||||||||||||
Corporate debt securities | 13,500 | 311 | — | 13,811 | ||||||||||||
$ | 344,416 | $ | 2,479 | $ | 5,022 | $ | 341,873 |
March 31, 2017 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Held-to-maturity: | ||||||||||||||||
Obligations of state and political subdivisions | $ | 37,338 | $ | 523 | $ | 6 | $ | 37,855 | ||||||||
GSE mortgage-backed securities | 42,004 | 433 | 140 | 42,297 | ||||||||||||
Collateralized mortgage obligations: residential | 8,605 | — | 273 | 8,332 | ||||||||||||
Collateralized mortgage obligations: commercial | 3,295 | — | 12 | 3,283 | ||||||||||||
$ | 91,242 | $ | 956 | $ | 431 | $ | 91,767 | |||||||||
December 31, 2016 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||
Held-to-maturity: | ||||||||||||||||
Obligations of state and political subdivisions | $ | 40,515 | $ | 309 | $ | 39 | $ | 40,785 | ||||||||
GSE mortgage-backed securities | 44,375 | 426 | 311 | 44,490 | ||||||||||||
Collateralized mortgage obligations: residential | 8,969 | — | 323 | 8,646 | ||||||||||||
Collateralized mortgage obligations: commercial | 4,352 | — | 12 | 4,340 | ||||||||||||
$ | 98,211 | $ | 735 | $ | 685 | $ | 98,261 |
Amortized Cost | Fair Value | |||||||
Available-for-sale: | ||||||||
Due in one year or less | $ | 2,682 | $ | 2,688 | ||||
Due after one year through five years | 6,265 | 6,430 | ||||||
Due after five years through ten years | 51,206 | 52,768 | ||||||
Due after ten years | 297,279 | 293,858 | ||||||
$ | 357,432 | $ | 355,744 | |||||
Amortized Cost | Fair Value | |||||||
Held-to-maturity: | ||||||||
Due in one year or less | $ | 354 | $ | 354 | ||||
Due after one year through five years | 6,535 | 6,579 | ||||||
Due after five years through ten years | 31,540 | 32,064 | ||||||
Due after ten years | 52,813 | 52,770 | ||||||
$ | 91,242 | $ | 91,767 |
March 31, 2017 | ||||||||||||||||||||||||
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 | $ | 12,827 | $ | 968 | $ | — | $ | — | $ | 12,827 | $ | 968 | ||||||||||||
GSE mortgage-backed securities | 26,478 | 146 | — | — | 26,478 | 146 | ||||||||||||||||||
Collateralized mortgage obligations: residential | 162,695 | 2,806 | 11,051 | 375 | 173,746 | 3,181 | ||||||||||||||||||
Collateralized mortgage obligations: commercial | — | — | 2,991 | 36 | 2,991 | 36 | ||||||||||||||||||
Mutual funds | 2,059 | 41 | — | — | 2,059 | 41 | ||||||||||||||||||
$ | 204,059 | $ | 3,961 | $ | 14,042 | $ | 411 | $ | 218,101 | $ | 4,372 | |||||||||||||
December 31, 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 | $ | 13,402 | $ | 1,020 | $ | — | $ | — | $ | 13,402 | $ | 1,020 | ||||||||||||
GSE mortgage-backed securities | 29,119 | 302 | — | — | 29,119 | 302 | ||||||||||||||||||
Collateralized mortgage obligations: residential | 187,235 | 3,099 | 14,194 | 507 | 201,429 | 3,606 | ||||||||||||||||||
Collateralized mortgage obligations: commercial | 961 | 4 | 2,121 | 49 | 3,082 | 53 | ||||||||||||||||||
Mutual funds | 2,059 | 41 | — | — | 2,059 | 41 | ||||||||||||||||||
$ | 232,776 | $ | 4,466 | $ | 16,315 | $ | 556 | $ | 249,091 | $ | 5,022 |
March 31, 2017 | ||||||||||||||||||||||||
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 | $ | 4,249 | $ | 6 | $ | — | $ | — | $ | 4,249 | $ | 6 | ||||||||||||
GSE mortgage-backed securities | 5,694 | 140 | — | — | 5,694 | 140 | ||||||||||||||||||
Collateralized mortgage obligations: residential | — | — | 8,332 | 273 | 8,332 | 273 | ||||||||||||||||||
Collateralized mortgage obligations: commercial | 3,283 | 12 | — | — | 3,283 | 12 | ||||||||||||||||||
$ | 13,226 | $ | 158 | $ | 8,332 | $ | 273 | $ | 21,558 | $ | 431 | |||||||||||||
December 31, 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 | $ | 8,054 | $ | 39 | $ | — | $ | — | $ | 8,054 | $ | 39 | ||||||||||||
GSE mortgage-backed securities | 19,408 | 311 | — | — | 19,408 | 311 | ||||||||||||||||||
Collateralized mortgage obligations: residential | — | — | 8,645 | 323 | 8,645 | 323 | ||||||||||||||||||
Collateralized mortgage obligations: commercial | 4,340 | 12 | — | — | 4,340 | 12 | ||||||||||||||||||
$ | 31,802 | $ | 362 | $ | 8,645 | $ | 323 | $ | 40,447 | $ | 685 |
March 31, 2017 | December 31, 2016 | |||||||
Commercial, financial and agricultural | $ | 469,815 | $ | 459,574 | ||||
Real estate – construction | 100,248 | 100,959 | ||||||
Real estate – commercial | 464,859 | 481,155 | ||||||
Real estate – residential | 159,426 | 157,872 | ||||||
Installment loans to individuals | 75,258 | 82,660 | ||||||
Lease financing receivable | 969 | 1,095 | ||||||
Other | 1,425 | 767 | ||||||
1,272,000 | 1,284,082 | |||||||
Less allowance for loan losses | (24,578 | ) | (24,372 | ) | ||||
$ | 1,247,422 | $ | 1,259,710 |
March 31, 2017 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Coml, Fin, and Agric | Construction | Commercial | Residential | Installment loans to individuals | Lease financing receivable | Other | Total | |||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 16,057 | $ | 585 | $ | 5,384 | $ | 940 | $ | 1,395 | $ | 5 | $ | 6 | $ | 24,372 | ||||||||||||||||
Charge-offs | (1,705 | ) | — | (823 | ) | (117 | ) | (261 | ) | — | — | (2,906 | ) | |||||||||||||||||||
Recoveries | 154 | — | 10 | 90 | 58 | — | — | 312 | ||||||||||||||||||||||||
Provision | 3,832 | (321 | ) | (238 | ) | (249 | ) | (222 | ) | (2 | ) | — | 2,800 | |||||||||||||||||||
Ending balance | $ | 18,338 | $ | 264 | $ | 4,333 | $ | 664 | $ | 970 | $ | 3 | $ | 6 | $ | 24,578 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 4,173 | $ | 9 | $ | 1,656 | $ | 217 | $ | 160 | $ | — | $ | — | $ | 6,215 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 14,165 | $ | 255 | $ | 2,677 | $ | 447 | $ | 810 | $ | 3 | $ | 6 | $ | 18,363 | ||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 469,815 | $ | 100,248 | $ | 464,859 | $ | 159,426 | $ | 75,258 | $ | 969 | $ | 1,425 | $ | 1,272,000 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 35,346 | $ | 26 | $ | 20,623 | $ | 1,956 | $ | 487 | $ | — | $ | — | $ | 58,438 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 434,469 | $ | 100,222 | $ | 443,802 | $ | 157,401 | $ | 74,771 | $ | 969 | $ | 1,425 | $ | 1,213,059 | ||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | 434 | $ | 69 | $ | — | $ | — | $ | — | $ | 503 |
March 31, 2016 | ||||||||||||||||||||||||||||||||
Real Estate | ||||||||||||||||||||||||||||||||
Coml, Fin, and Agric | Construction | 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 | (1,307 | ) | — | — | (4 | ) | (283 | ) | — | — | (1,594 | ) | ||||||||||||||||||||
Recoveries | 26 | — | 76 | 3 | 25 | — | — | 130 | ||||||||||||||||||||||||
Provision | 2,194 | (420 | ) | 861 | (170 | ) | 336 | (3 | ) | 2 | 2,800 | |||||||||||||||||||||
Ending balance | $ | 12,181 | $ | 399 | $ | 5,551 | $ | 645 | $ | 1,546 | $ | 11 | $ | 14 | $ | 20,347 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,021 | $ | — | $ | 2,586 | $ | 267 | $ | 278 | $ | — | $ | — | $ | 4,152 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 11,160 | $ | 399 | $ | 2,965 | $ | 378 | $ | 1,268 | $ | 11 | $ | 14 | $ | 16,195 | ||||||||||||||||
Loans: | ||||||||||||||||||||||||||||||||
Ending balance | $ | 441,160 | $ | 84,790 | $ | 467,648 | $ | 149,961 | $ | 103,181 | $ | 1,590 | $ | 1,719 | $ | 1,250,049 | ||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 29,097 | $ | 35 | $ | 27,511 | $ | 2,230 | $ | 506 | $ | — | $ | — | $ | 59,379 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 412,063 | $ | 84,755 | $ | 439,530 | $ | 147,653 | $ | 102,675 | $ | 1,590 | $ | 1,719 | $ | 1,189,985 | ||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | — | $ | — | $ | 607 | $ | 78 | $ | — | $ | — | $ | — | $ | 685 |
March 31, 2017 | ||||||||||||||||||||||||||||
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 | $ | 1,849 | $ | 1,022 | $ | 28,154 | $ | 31,025 | $ | 438,790 | $ | 469,815 | $ | 546 | ||||||||||||||
Real estate - construction | 709 | — | 125 | 834 | 99,414 | 100,248 | 99 | |||||||||||||||||||||
Real estate - commercial | 9,326 | 1,389 | 18,542 | 29,257 | 435,602 | 464,859 | — | |||||||||||||||||||||
Real estate - residential | 2,237 | 136 | 1,620 | 3,993 | 155,433 | 159,426 | 130 | |||||||||||||||||||||
Installment loans to individuals | 302 | 190 | 487 | 979 | 74,279 | 75,258 | — | |||||||||||||||||||||
Lease financing receivable | — | — | — | — | 969 | 969 | — | |||||||||||||||||||||
Other loans | 41 | 6 | — | 47 | 1,378 | 1,425 | — | |||||||||||||||||||||
$ | 14,464 | $ | 2,743 | $ | 48,928 | $ | 66,135 | $ | 1,205,865 | $ | 1,272,000 | $ | 775 | |||||||||||||||
December 31, 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 | $ | 2,297 | $ | 902 | $ | 31,425 | $ | 34,624 | $ | 424,950 | $ | 459,574 | $ | 96 | ||||||||||||||
Real estate - construction | 2,613 | 399 | 9 | 3,021 | 97,938 | 100,959 | — | |||||||||||||||||||||
Real estate - commercial | 5,159 | 1,931 | 25,408 | 32,498 | 448,657 | 481,155 | 140 | |||||||||||||||||||||
Real estate - residential | 1,956 | 207 | 1,553 | 3,716 | 154,156 | 157,872 | 16 | |||||||||||||||||||||
Installment loans to individuals | 756 | 36 | 538 | 1,330 | 81,330 | 82,660 | 16 | |||||||||||||||||||||
Lease financing receivable | — | — | — | — | 1,095 | 1,095 | — | |||||||||||||||||||||
Other loans | 89 | 5 | — | 94 | 673 | 767 | — | |||||||||||||||||||||
$ | 12,870 | $ | 3,480 | $ | 58,933 | $ | 75,283 | $ | 1,208,799 | $ | 1,284,082 | $ | 268 |
March 31, 2017 | December 31, 2016 | |||||||
Commercial, financial, and agricultural | $ | 33,351 | $ | 31,461 | ||||
Real estate - construction | 26 | 9 | ||||||
Real estate - commercial | 20,623 | 28,688 | ||||||
Real estate - residential | 1,956 | 1,881 | ||||||
Installment loans to individuals | 487 | 541 | ||||||
Lease financing receivable | — | — | ||||||
Other | — | — | ||||||
$ | 56,443 | $ | 62,580 |
March 31, 2017 | ||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial, financial, and agricultural | $ | 19,185 | $ | 19,688 | $ | — | $ | 17,143 | $ | 26 | ||||||||||
Real estate - construction | — | — | — | 5 | — | |||||||||||||||
Real estate - commercial | 6,320 | 6,320 | — | 9,515 | 3 | |||||||||||||||
Real estate - residential | 389 | 389 | — | 646 | 1 | |||||||||||||||
Installment loans to individuals | — | — | — | 37 | — | |||||||||||||||
Subtotal: | 25,894 | 26,397 | — | 27,346 | 30 | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial, financial, and agricultural | 16,161 | 16,344 | 4,173 | 16,267 | 1 | |||||||||||||||
Real estate - construction | 26 | 26 | 9 | 13 | — | |||||||||||||||
Real estate - commercial | 14,303 | 14,503 | 1,656 | 15,141 | — | |||||||||||||||
Real estate - residential | 1,567 | 1,567 | 217 | 1,245 | — | |||||||||||||||
Installment loans to individuals | 487 | 524 | 160 | 477 | — | |||||||||||||||
Subtotal: | 32,544 | 32,964 | 6,215 | 33,143 | 1 | |||||||||||||||
Totals: | ||||||||||||||||||||
Commercial | 55,969 | 56,855 | 5,829 | 58,066 | 30 | |||||||||||||||
Construction | 26 | 26 | 9 | 18 | — | |||||||||||||||
Residential | 1,956 | 1,956 | 217 | 1,891 | 1 | |||||||||||||||
Consumer | 487 | 524 | 160 | 514 | — | |||||||||||||||
Grand total: | $ | 58,438 | $ | 59,361 | $ | 6,215 | $ | 60,489 | $ | 31 | ||||||||||
December 31, 2016 | ||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | ||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial, financial, and agricultural | $ | 15,101 | $ | 15,428 | $ | — | $ | 18,815 | $ | 191 | ||||||||||
Real estate - construction | 9 | 9 | — | 23 | — | |||||||||||||||
Real estate - commercial | 12,710 | 12,710 | — | 9,297 | 64 | |||||||||||||||
Real estate - residential | 903 | 903 | — | 1,134 | — | |||||||||||||||
Installment loans to individuals | 73 | 87 | — | 54 | 1 | |||||||||||||||
Subtotal: | 28,796 | 29,137 | — | 29,323 | 256 | |||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial, financial, and agricultural | 16,372 | 16,470 | 4,369 | 10,781 | 42 | |||||||||||||||
Real estate - commercial | 15,979 | 15,979 | 2,216 | 14,992 | 28 | |||||||||||||||
Real estate - residential | 923 | 923 | 260 | 730 | — | |||||||||||||||
Installment loans to individuals | 468 | 478 | 308 | 419 | 11 | |||||||||||||||
Subtotal: | 33,742 | 33,850 | 7,153 | 26,922 | 81 | |||||||||||||||
Totals: | ||||||||||||||||||||
Commercial | 60,162 | 60,587 | 6,585 | 53,885 | 325 | |||||||||||||||
Construction | 9 | 9 | — | 23 | — | |||||||||||||||
Residential | 1,826 | 1,826 | 260 | 1,864 | — | |||||||||||||||
Consumer | 541 | 565 | 308 | 473 | 12 | |||||||||||||||
Grand total: | $ | 62,538 | $ | 62,987 | $ | 7,153 | $ | 56,245 | $ | 337 |
March 31, 2017 | |||||||||||||||||||||
Commercial Credit Exposure | |||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||
Commercial, financial, and agricultural | Real estate - commercial | Total | % of Total | ||||||||||||||||||
Pass | $ | 354,424 | $ | 412,694 | $ | 767,118 | 82.07 | % | |||||||||||||
Special mention | 10,916 | 14,188 | 25,104 | 2.69 | % | ||||||||||||||||
Substandard | 104,261 | 37,977 | 142,238 | 15.22 | % | ||||||||||||||||
Doubtful | 214 | — | 214 | 0.02 | % | ||||||||||||||||
$ | 469,815 | $ | 464,859 | $ | 934,674 | 100.00 | % | ||||||||||||||
Construction Credit Exposure | |||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||
Real estate - construction | % of Total | ||||||||||||||||||||
Pass | $ | 100,050 | 99.80 | % | |||||||||||||||||
Special mention | — | — | % | ||||||||||||||||||
Substandard | 198 | 0.20 | % | ||||||||||||||||||
$ | 100,248 | 100.00 | % | ||||||||||||||||||
Residential Credit Exposure | |||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||
Real estate - residential | % of Total | ||||||||||||||||||||
Pass | $ | 154,943 | 97.19 | % | |||||||||||||||||
Special mention | 1,131 | 0.71 | % | ||||||||||||||||||
Substandard | 3,352 | 2.10 | % | ||||||||||||||||||
$ | 159,426 | 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 | $ | 74,753 | $ | 969 | $ | 1,425 | $ | 77,147 | 99.35 | % | |||||||||||
Nonperforming | 505 | — | — | 505 | 0.65 | % | |||||||||||||||
$ | 75,258 | $ | 969 | $ | 1,425 | $ | 77,652 | 100.00 | % |
December 31, 2016 | |||||||||||||||||||||
Commercial Credit Exposure | |||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||
Commercial, financial, and agricultural | Real estate - commercial | Total | % of Total | ||||||||||||||||||
Pass | $ | 346,246 | $ | 420,970 | $ | 767,216 | 81.56 | % | |||||||||||||
Special mention | 22,611 | 23,085 | 45,696 | 4.86 | % | ||||||||||||||||
Substandard | 90,300 | 37,100 | 127,400 | 13.54 | % | ||||||||||||||||
Doubtful | 417 | — | 417 | 0.04 | % | ||||||||||||||||
$ | 459,574 | $ | 481,155 | $ | 940,729 | 100.00 | % | ||||||||||||||
Construction Credit Exposure | |||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||
Real estate - construction | % of Total | ||||||||||||||||||||
Pass | $ | 100,775 | 99.82 | % | |||||||||||||||||
Special mention | — | — | % | ||||||||||||||||||
Substandard | 184 | 0.18 | % | ||||||||||||||||||
$ | 100,959 | 100.00 | % | ||||||||||||||||||
Residential Credit Exposure | |||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||
Real estate - residential | % of Total | ||||||||||||||||||||
Pass | $ | 153,403 | 97.17 | % | |||||||||||||||||
Special mention | 1,181 | 0.75 | % | ||||||||||||||||||
Substandard | 3,288 | 2.08 | % | ||||||||||||||||||
$ | 157,872 | 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 | $ | 82,103 | $ | 1,095 | $ | 767 | $ | 83,965 | 99.34 | % | |||||||||||
Nonperforming | 557 | — | — | 557 | 0.66 | % | |||||||||||||||
$ | 82,660 | $ | 1,095 | $ | 767 | $ | 84,522 | 100.00 | % |
March 31, 2017 | ||||||||||||||||
Current | Past Due Greater Than 30 Days | Nonaccrual TDRs | Total TDRs | |||||||||||||
Commercial, financial and agricultural | $ | 1,995 | $ | — | $ | 21,864 | $ | 23,859 | ||||||||
Real estate – commercial | — | — | 808 | 808 | ||||||||||||
$ | 1,995 | $ | — | $ | 22,672 | $ | 24,667 | |||||||||
December 31, 2016 | ||||||||||||||||
Current | Past Due Greater Than 30 Days | Nonaccrual TDRs | Total TDRs | |||||||||||||
Commercial, financial and agricultural | $ | 12 | $ | — | $ | 24,331 | $ | 24,343 | ||||||||
Real estate – commercial | — | 140 | 808 | 948 | ||||||||||||
$ | 12 | $ | 140 | $ | 25,139 | $ | 25,291 |
March 31, 2017 | December 31, 2016 | |||||||
Gross carrying amount | $ | 11,674 | $ | 11,674 | ||||
Less accumulated amortization | (7,329 | ) | (7,053 | ) | ||||
Net carrying amount | $ | 4,345 | $ | 4,621 |
Notional Amounts | Fair Value | |||||||||||||||||
Type of Hedge | March 31, 2017 | December 31, 2016 | March 31, 2017 | December 31, 2016 | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||
Interest rate swaps included in other assets | Cash Flow | $ | 27,500 | $ | 27,500 | $ | 1,002 | $ | 989 |
Three Months Ended March 31, | ||||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||||
Before Tax Amount | Tax Effect | Net of Tax Amount | Before Tax Amount | Tax Effect | Net of Tax Amount | |||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||
Securities available-for-sale: | ||||||||||||||||||||||||
Change in unrealized gains during period | $ | 820 | $ | (287 | ) | $ | 533 | $ | 2,802 | $ | (980 | ) | $ | 1,822 | ||||||||||
Reclassification adjustment for gains included in net income | (6 | ) | 2 | (4 | ) | — | — | — | ||||||||||||||||
Derivative instruments designated as cash flow hedges: | ||||||||||||||||||||||||
Change in fair value of derivative instruments designated as cash flow hedges | 13 | (5 | ) | 8 | — | — | — | |||||||||||||||||
Total other comprehensive income | $ | 827 | $ | (290 | ) | $ | 537 | $ | 2,802 | $ | (980 | ) | $ | 1,822 |
Three Months Ended March 31, | ||||||||||||
2017 | 2016 | |||||||||||
Details about Accumulated Other Comprehensive Loss Components | Reclassifications Out of Accumulated Other Comprehensive Loss | Income Statement Line Item | Reclassifications Out of Accumulated Other Comprehensive Loss | Income Statement Line Item | ||||||||
Unrealized gains and losses on securities available-for-sale: | ||||||||||||
$ | (6 | ) | Gain on sale of securities, net | $ | — | Gain on sale of securities, net | ||||||
2 | Tax expense | — | Tax expense | |||||||||
$ | (4 | ) | Net of tax | $ | — | Net of tax |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Net earnings available to common shareholders | $ | 1,680 | $ | 1,922 | ||||
Dividends on Series C preferred stock | — | — | ||||||
Adjusted net earnings available to common shareholders | $ | 1,680 | $ | 1,922 | ||||
Weighted average number of common shares outstanding used in computation of basic earnings per common share | 11,264 | 11,262 | ||||||
Effect of dilutive securities: | ||||||||
Stock options | 14 | — | ||||||
Restricted stock | 4 | — | ||||||
Convertible preferred stock and warrants | — | — | ||||||
Weighted average number of common shares outstanding plus effect of dilutive securities – used in computation of diluted earnings per share | 11,282 | 11,262 |
Three Months Ended March 31, | ||||||
2017 | 2016 | |||||
Stock options | 84 | 345 | ||||
Restricted stock | 4 | 11 | ||||
Shares subject to the outstanding warrant issued in connection with the CPP transaction | 104 | 104 | ||||
Convertible preferred stock | 507 | 507 |
Assets / Liabilities Measured at Fair Value at | Fair Value Measurements at March 31, 2017 | |||||||||||||||
Description | March 31, 2017 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Obligations of state and political subdivisions | $ | 25,611 | $ | — | $ | 25,611 | $ | — | ||||||||
GSE mortgage-backed securities | 80,026 | — | 80,026 | — | ||||||||||||
Collateralized mortgage obligations: residential | 227,514 | — | 227,514 | — | ||||||||||||
Collateralized mortgage obligations: commercial | 2,991 | — | 2,991 | — | ||||||||||||
Mutual funds | 2,059 | 2,059 | — | — | ||||||||||||
Corporate debt securities | 19,602 | — | 19,602 | — | ||||||||||||
Total available-for-sale securities | $ | 357,803 | $ | 2,059 | $ | 355,744 | $ | — | ||||||||
Derivative assets | $ | 1,002 | $ | — | $ | 1,002 | $ | — |
Assets / Liabilities Measured at Fair Value at | Fair Value Measurements at December 31, 2016 | |||||||||||||||
Description | December 31, 2016 | Level 1 | Level 2 | Level 3 | ||||||||||||
Available-for-sale securities: | ||||||||||||||||
Obligations of state and political subdivisions | $ | 29,141 | $ | — | $ | 29,141 | $ | — | ||||||||
GSE mortgage-backed securities | 73,578 | — | 73,578 | — | ||||||||||||
Collateralized mortgage obligations: residential | 220,202 | — | 220,202 | — | ||||||||||||
Collateralized mortgage obligations: commercial | 3,082 | — | 3,082 | — | ||||||||||||
Mutual funds | 2,059 | 2,059 | — | — | ||||||||||||
Corporate debt securities | 13,811 | — | 13,811 | — | ||||||||||||
Total available-for-sale securities | $ | 341,873 | $ | 2,059 | $ | 339,814 | $ | — | ||||||||
Derivative assets | $ | 989 | $ | — | $ | 989 | $ | — |
Assets / Liabilities Measured at Fair Value at | Fair Value Measurements at March 31, 2017 | |||||||||||||||
Description | March 31, 2017 | Level 1 | Level 2 | Level 3 | ||||||||||||
Impaired loans | $ | 27,051 | $ | — | $ | 27,051 | $ | — | ||||||||
Other real estate | 1,643 | — | 1,643 | — | ||||||||||||
Assets / Liabilities Measured at Fair Value at | Fair Value Measurements at December 31, 2016 | |||||||||||||||
Description | December 31, 2016 | Level 1 | Level 2 | Level 3 | ||||||||||||
Impaired loans | $ | 26,956 | $ | — | $ | 26,956 | $ | — | ||||||||
Other real estate | 2,175 | — | 2,175 | — |
Fair Value Measurements at March 31, 2017 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 | $ | 78,471 | $ | 78,471 | $ | — | $ | — | ||||||||
Securities available-for-sale | 357,803 | 2,059 | 355,744 | — | ||||||||||||
Securities held-to-maturity | 91,242 | — | 91,767 | — | ||||||||||||
Other investments | 11,362 | 11,362 | — | — | ||||||||||||
Loans, net | 1,247,422 | — | 27,051 | 1,225,251 | ||||||||||||
Cash surrender value of life insurance policies | 14,398 | — | 14,398 | — | ||||||||||||
Derivative asset | 1,002 | — | 1,002 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Non-interest-bearing deposits | 426,998 | — | 426,998 | — | ||||||||||||
Interest-bearing deposits | 1,145,946 | — | 996,201 | 148,598 | ||||||||||||
Securities sold under agreements to repurchase | 89,807 | 89,807 | — | — | ||||||||||||
Long-term Federal Home Loan Bank advances | 25,318 | — | 25,614 | — | ||||||||||||
Junior subordinated debentures | 22,167 | — | 22,167 | — |
Fair Value Measurements at December 31, 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 | $ | 82,228 | $ | 82,228 | $ | — | $ | — | ||||||||
Securities available-for-sale | 341,873 | 2,059 | 339,814 | — | ||||||||||||
Securities held-to-maturity | 98,211 | — | 98,261 | — | ||||||||||||
Other investments | 11,355 | 11,355 | — | — | ||||||||||||
Loans, net | 1,259,710 | — | 26,956 | 1,236,133 | ||||||||||||
Cash surrender value of life insurance policies | 14,335 | — | 14,335 | — | ||||||||||||
Derivative asset | 989 | — | 989 | — | ||||||||||||
Financial liabilities: | ||||||||||||||||
Non-interest-bearing deposits | 414,921 | — | 414,921 | — | ||||||||||||
Interest-bearing deposits | 1,164,509 | — | 1,012,633 | 150,879 | ||||||||||||
Securities sold under agreements to repurchase | 94,461 | 94,461 | — | — | ||||||||||||
Long-term Federal Home Loan Bank advances | 25,424 | — | 25,808 | — | ||||||||||||
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 March 31, | ||||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||||
Average Volume | Interest | Average Yield/Rate | Average Volume | Interest | Average Yield/Rate | |||||||||||||||||
Assets | ||||||||||||||||||||||
Investment securities1 | ||||||||||||||||||||||
Taxable | $ | 382,105 | $ | 2,327 | 2.44 | % | $ | 358,623 | $ | 2,036 | 2.27 | % | ||||||||||
Tax exempt2 | 60,618 | 620 | 4.09 | % | 64,971 | 699 | 4.30 | % | ||||||||||||||
Total investment securities | 442,723 | 2,947 | 2.66 | % | 423,594 | 2,735 | 2.58 | % | ||||||||||||||
Federal funds sold | 3,571 | 6 | 0.67 | % | 3,843 | 5 | 0.51 | % | ||||||||||||||
Time and interest bearing deposits in other banks | 41,785 | 85 | 0.81 | % | 74,271 | 94 | 0.50 | % | ||||||||||||||
Other investments | 11,355 | 84 | 2.96 | % | 11,189 | 88 | 3.15 | % | ||||||||||||||
Total loans3 | 1,274,213 | 16,622 | 5.29 | % | 1,252,742 | 17,123 | 5.50 | % | ||||||||||||||
Total earning assets | 1,773,647 | 19,744 | 4.51 | % | 1,765,639 | 20,045 | 4.57 | % | ||||||||||||||
Allowance for loan losses | (24,021 | ) | (19,499 | ) | ||||||||||||||||||
Nonearning assets | 183,192 | 185,764 | ||||||||||||||||||||
Total assets | $ | 1,932,818 | $ | 1,931,904 | ||||||||||||||||||
Liabilities and shareholders’ equity | ||||||||||||||||||||||
Total interest bearing deposits | $ | 1,155,407 | $ | 935 | 0.33 | % | $ | 1,180,581 | $ | 907 | 0.31 | % | ||||||||||
Securities sold under repurchase agreements | 92,571 | 234 | 1.03 | % | 85,756 | 233 | 1.09 | % | ||||||||||||||
Short-term FHLB advances | — | — | — | % | 22,802 | 23 | 0.40 | % | ||||||||||||||
Long-term FHLB advances | 25,370 | 88 | 1.39 | % | 25,794 | 90 | 1.38 | % | ||||||||||||||
Junior subordinated debentures | 22,167 | 208 | 3.75 | % | 22,167 | 167 | 2.98 | % | ||||||||||||||
Total interest bearing liabilities | 1,295,515 | 1,465 | 0.46 | % | 1,337,100 | 1,420 | 0.43 | % | ||||||||||||||
Demand deposits | 413,781 | 371,636 | ||||||||||||||||||||
Other liabilities | 7,627 | 6,569 | ||||||||||||||||||||
Shareholders’ equity | 215,895 | 216,599 | ||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,932,818 | $ | 1,931,904 | ||||||||||||||||||
Net interest income and net interest spread | $ | 18,279 | 4.05 | % | $ | 18,625 | 4.14 | % | ||||||||||||||
Net interest margin | 4.18 | % | 4.24 | % |
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 $213,000 for 2017 and $241,000 for 2016 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 $707,000 for 2017 and $934,000 for 2016. Nonaccrual loans are included in average balances and income on such loans is recognized on a cash basis. |
Table 2 Changes in Taxable-Equivalent Net Interest Income (in thousands) | ||||||||||||
Three Months Ended March 31, 2017 compared to March 31, 2016 | ||||||||||||
Total Increase | Change Attributable To | |||||||||||
(Decrease) | Volume | Rates | ||||||||||
Taxable-equivalent earned on: | ||||||||||||
Investment securities | ||||||||||||
Taxable | $ | 291 | $ | 138 | $ | 153 | ||||||
Tax exempt | (79 | ) | (46 | ) | (33 | ) | ||||||
Federal funds sold | 1 | — | 1 | |||||||||
Time and interest bearing deposits in other banks | (9 | ) | (50 | ) | 41 | |||||||
Other investments | (4 | ) | 1 | (5 | ) | |||||||
Loans, including fees | (501 | ) | 288 | (789 | ) | |||||||
Total | (301 | ) | 331 | (632 | ) | |||||||
Interest paid on: | ||||||||||||
Interest bearing deposits | 28 | (19 | ) | 47 | ||||||||
Securities sold under repurchase agreements | 1 | 17 | (16 | ) | ||||||||
Short-term FHLB advances | (23 | ) | (23 | ) | — | |||||||
Long-term FHLB advances | (2 | ) | (2 | ) | — | |||||||
Junior subordinated debentures | 41 | — | 41 | |||||||||
Total | 45 | (27 | ) | 72 | ||||||||
Taxable-equivalent net interest income | $ | (346 | ) | $ | 358 | $ | (704 | ) |
Table 3 Non-Interest Income (in thousands) | ||||||||
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Service charges on deposit accounts | $ | 2,480 | $ | 2,369 | ||||
ATM and debit card income | 1,703 | 1,609 | ||||||
Gain on securities, net | 6 | — | ||||||
Mortgage lending | 143 | 109 | ||||||
Increase in cash value of life insurance | 63 | 70 | ||||||
Credit card interchange income | 294 | 257 | ||||||
Credit card merchant fee income | 69 | 78 | ||||||
Other | 355 | 252 | ||||||
Total non-interest income | $ | 5,113 | $ | 4,744 |
Table 4 Non-Interest Expense (in thousands) | ||||||||
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Salaries and employee benefits | $ | 8,689 | $ | 7,990 | ||||
Occupancy expense | 3,624 | 3,597 | ||||||
ATM and debit card | 721 | 785 | ||||||
Legal and professional fees | 385 | 383 | ||||||
FDIC premiums | 397 | 429 | ||||||
Marketing | 280 | 381 | ||||||
Corporate development | 316 | 335 | ||||||
Data processing | 621 | 458 | ||||||
Printing and supplies | 183 | 188 | ||||||
Expenses on ORE, net | 79 | 194 | ||||||
Amortization of core deposit intangibles | 277 | 277 | ||||||
Other non-interest expense | 1,658 | 1,742 | ||||||
Total non-interest income | $ | 17,230 | $ | 16,759 |
Table 7 Composition of Loans (in thousands) | ||||||||
March 31, 2017 | December 31, 2016 | |||||||
Commercial, financial, and agricultural (C&I) | $ | 469,815 | $ | 459,574 | ||||
Real estate – construction | 100,248 | 100,959 | ||||||
Real estate – commercial (CRE) | 464,859 | 481,155 | ||||||
Real estate – residential | 159,426 | 157,872 | ||||||
Installment loans to individuals | 75,258 | 82,660 | ||||||
Lease financing receivable | 969 | 1,095 | ||||||
Other | 1,425 | 767 | ||||||
$ | 1,272,000 | $ | 1,284,082 | |||||
Less allowance for loan losses | (24,578 | ) | (24,372 | ) | ||||
Net loans | $ | 1,247,422 | $ | 1,259,710 |
Table 8 Nonperforming Assets and Loans Past Due 90 Days or More and Still Accruing (in thousands) | ||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||||
Nonaccrual loans | $ | 56,443 | $ | 62,580 | $ | 53,714 | ||||||
Loans past due 90 days and over and still accruing | 775 | 268 | 258 | |||||||||
Total nonperforming loans | 57,218 | 62,848 | 53,972 | |||||||||
Other real estate | 1,643 | 2,175 | 3,908 | |||||||||
Other foreclosed assets | 30 | 16 | 265 | |||||||||
Total nonperforming assets | $ | 58,891 | $ | 65,039 | $ | 58,145 | ||||||
Troubled debt restructurings, accruing | $ | 1,995 | $ | 152 | $ | 5,675 | ||||||
Nonperforming assets to total assets | 3.04 | % | 3.35 | % | 3.03 | % | ||||||
Nonperforming assets to total loans + ORE + other assets repossessed | 4.62 | % | 5.06 | % | 4.64 | % | ||||||
ALL to nonperforming loans | 42.96 | % | 38.78 | % | 37.70 | % | ||||||
ALL to total loans | 1.93 | % | 1.90 | % | 1.63 | % | ||||||
QTD charge-offs | $ | 2,906 | $ | 1,835 | $ | 1,594 | ||||||
QTD recoveries | 312 | 339 | 130 | |||||||||
QTD net charge-offs | $ | 2,594 | $ | 1,496 | $ | 1,464 | ||||||
Annualized net charge-offs to total loans | 0.83 | % | 0.46 | % | 0.47 | % |
Table 9 Reconciliation of Non-GAAP Financial Measures (in thousands except per share data) | ||||||||
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Core Net Interest Margin | ||||||||
Net interest income (FTE) | $ | 18,279 | $ | 18,368 | ||||
Less purchase accounting adjustments | (274 | ) | (565 | ) | ||||
Core net interest income, net of purchase accounting adjustments | A | $ | 18,005 | $ | 17,803 | |||
Total average earning assets | $ | 1,773,647 | $ | 1,765,639 | ||||
Add average balance of loan valuation discount | 1,964 | 3,323 | ||||||
Average earnings assets, excluding loan valuation discount | B | $ | 1,775,611 | $ | 1,768,962 | |||
Core net interest margin | A/B | 4.11 | % | 4.05 | % | |||
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). |
10.1 | MidSouth Bancorp, Inc. 2017 Annual Incentive Compensation Plan |
10.2 | Form of Performance-Based Restricted Stock Unit Grant Agreement |
23.1 | Consent of Porter Keadle Moore, LLC |
31.1 | Certification pursuant to Exchange Act Rules 13(a) – 14(a) |
32.1 | 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 March 31, 2017, 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: May 8, 2017 | |
/s/ James R. McLemore | |
James R. McLemore, President, CEO and CFO | |
(Principal Executive Officer and Principal Financial Officer) | |
/s/ Teri S. Stelly | |
Teri S. Stelly, Controller (Principal Accounting Officer) |
1. | “Actual Base Salary” means the total base salary paid to the Plan Participant during the Plan Year. |
2. | “Board” means the Board of Directors of the Company as constituted from time to time. |
3. | “Code” means the Internal Revenue Code of 1986, as amended. |
4. | “Disability” means (a) the employee suffering a sickness, accident, or injury which has been determined by the carrier of any individual or group disability insurance policy covering the employee or if no such policy exists then by the Social Security Administration, to be a disability rendering the employee totally and permanently disabled. The employee must submit proof to the Plan Administrator of the carrier’s or Social Security Administration’s determination upon the request of the Plan Administrator; or (b) such definition of Disability as defined by the Secretary of the Treasury, in which case such definition shall supersede any other definition of Disability in this Plan and shall control the terms of this Plan. |
5. | “Effective Date” means January 1, 2017. |
6. | “ERISA” means the Employee Retirement Income Security Act of |
7. | “Plan Administrator” means the plan administrator described in |
8. | “Plan Participant” means any current employee of the Company that is designated by the Chief Executive Officer (“CEO”), and approved by the Compensation Committee of the Board as eligible to participate in this Plan. Newly hired or newly promoted employees must be approved by the CEO to participate in the Plan. The CEO or Board will determine the level of participation eligible to the new employee. |
9. | “Plan Year” means a twelve month period commencing on January 1 and ending on December 31 of each year. The initial Plan Year shall commence on the Effective Date. |
I. | PLAN PURPOSE |
II. | PARTICIPATION |
III. | PLAN YEAR |
IV. | GENERAL PLAN DESIGN |
V. | EARNINGS OF ANNUAL INCENTIVE AWARDS |
A. | Annual Incentive Award Levels |
B. | Performance Standards |
1. | Company Performance – The overall award for Company performance will be based on the Company’s overall success as measured by criteria determined by the Board and CEO. Percentage payouts for overall Company performance will be allocated based on the achievement of this goal, as located in the Appendix of this Plan, for each Plan Participant in the Plan. |
2. | Plan Participant Performance – For all Plan Participants, pre-determined Bank, Regional and/or Individual Participant performance criteria may also be used to determine the Plan Participant’s award payout. A percentage of the annual incentive award will be based on achievement of Plan Participant criteria, as indicated in the Plan worksheets. The specific Plan Participant performance objectives will be established at the beginning of the Plan Year. |
1. | Threshold Performance: exceeding threshold by at least one is the minimum level of performance needed to receive an award. |
2. | Targeted Performance: The forecasted, or expected, level of performance based upon both historical data and management’s best judgment of expected performance during the coming performance period. |
3. | Maximum Performance: The level of performance which based upon historical performance and management’s judgment would be exceptional or significantly beyond Target Performance levels. |
C. | Qualifiers |
D. | Payment of Awards |
1. | A Plan participant must be an active employee at the time of the award payout in order to be eligible to receive the award payout. |
2. | Performance level awards are determined relative to specific achievement per Plan Participant. Each individual award payout is calculated using a percent of total Actual Base Salary for the current Plan Year. |
3. | For each Plan participant, the incentive award for each factor is multiplied by the assigned factor weighting. |
4. | The incentive award, expressed in dollars, is then computed for each Plan Participant by calculating the award payout proportion as compared to designated levels and then adding each factor’s award result. |
5. | Incentive awards are paid out to each eligible Plan Participant according to the schedule outlined in the Appendix of this Plan Document. |
6. | Awards will be paid on an annual basis. |
VI. | PROGRAM ADMINISTRATOR |
A. | Responsibilities of the Board of Directors |
1. | Deciding if an extraordinary occurrence totally outside of management’s influence, be it a windfall or a shortfall, has occurred during the current Plan Year, and whether the figures should be adjusted to neutralize the effects of such events. |
2. | Deciding if an unacceptable performance event has occurred between the end of the Plan year and award payout, such as a major management default of primary responsibilities, or a discovery of fraud, which would be the basis for potentially restructuring or elimination any award payout. |
B. | Responsibilities of the CEO |
1. | Recommend Plan Participant Changes Each Plan Year. |
a. | This involves determining if additional employees will participate in the Plan and if any employees are to be removed from participating in the Plan. |
2. | Recommendations for Annual Incentive Awards. |
a. | The CEO will review the objectives and evaluations, adjust guideline awards for performance, and recommend final awards to the Board. |
b. | Make appropriate adjustments on a discretionary basis for any payout inequities. |
3. | Present All Other Appropriate Recommendations to the Board. |
a. | Such recommendations may include changes in the Plan provisions which occur during the life of the Plan. |
C. | Responsibilities of Human Resources (or Designee) |
VII. | TERMINATION OF EMPLOYMENT: |
i. | Death of Plan Participant: In the event of death of a Plan Participant during the Plan Year, the incentive award attributable to that individual would be paid to their designated beneficiary(s) in an amount equal to what the Plan Participant would have received at the Target performance level. |
ii. | Plan Participant Disability: If the Plan Participant becomes disabled during the Plan Year, the accrued amount of incentive award at such time would be payable to Plan Participant. |
iii. | Termination for Cause or for Good Reason: If any Plan Participant is either terminated for cause or terminates for good reason during the Plan Year, that individual would forfeit any unvested, unpaid or accrued incentive award, whether or not it was earned by such Participant. |
iv. | Change in Control: If within six months prior to, or within a year after a Change-in-Control, as defined by U. S. Treasury guidelines, the executive is involuntarily terminated or if he terminates employment for good reason, any outstanding awards would vest immediately at the target performance level on a prorated basis. |
VIII. | AMENDMENTS AND TERMINATION OF PLAN |
IX. | CLAIMS AND REVIEW PROCEDURES |
A. | Claims Procedure |
1. | Initiation – Written Claim. The claimant initiates a claim by submitting to the Plan Administrator a written claim for benefits. |
2. | Timing of Plan Administrator Response. The Plan Administrator shall respond to such claimant within 90 days after receiving the claim. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 90 days by notifying the claimant in writing, prior to the end of the initial 90-day period, which an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision. |
3. | Notice of Decision. If the Plan Administrator denies part or the entire claim, the Plan Administrator shall notify the claimant in writing of such denial. The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant. The notification shall set forth: |
a. | The specific reasons for the denial; |
b. | A reference to the specific provisions of the Plan on which the denial is based; |
c. | A description of any additional information or material necessary for the claimant to perfect the claim and an explanation of why it is needed; |
d. | An explanation of the Plan’s review procedures and the time limits applicable to such procedures; |
e. | A statement of the claimant’s right to bring a civil action under ERISA Section 02(a) following an adverse benefit determination on review. |
B. | Review Procedure |
1. | Initiation – Written Request. To initiate the review, the claimant, within 60 days after receiving the Plan Administrator’s notice of denial, must file with the Plan Administrator a written request for review. |
2. | Additional Submissions – Information Access. The claimant shall then have the opportunity to submit written comments, documents, records, and other information relating to the claim. The Plan administrator shall also provide the claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant’s claim for benefits. |
3. | Considerations on Review. In considering the review, the Plan Administrator shall take into account all materials and information the claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. |
4. | Timing of Plan Administrator Response. The Plan Administrator shall respond in writing to such claimant within 60 days after receiving the request for review. If the Plan Administrator determines that special circumstances require additional time for processing the claim, the Plan Administrator can extend the response period by an additional 60 days by notifying the claimant in writing, prior to the end of the initial 60-day period that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Plan Administrator expects to render its decision. |
5. | Notice of Decision. The Plan Administrator shall notify the claimant in writing of its decision on review. The Plan Administrator shall write the notification in a manner calculated to be understood by the claimant. The notification shall be set forth: |
a. | The specific reasons for the denial; |
b. | A reference to the specific provisions of the Plan on which the denial is based; |
c. | A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of all documents, records and other information relevant (as defined in applicable ERISA regulations) to the claimant claim for benefits; and |
d. | A statement of the claimant’s right to bring a civil action under ERISA Section 502(a). |
X. | COMMUNICATION OF PLAN TO PLAN PARTICIPANTS |
i. | An initial communication to all Plan Participants of the Plan details, including the performance targets set for the initial Plan Year. It is recommended that the Company communicate Plan objectives at least 30 days prior to the beginning of the Plan Year. |
ii. | Communication of new performance targets, Plan procedure changes, etc., at the beginning of each Plan Year. |
iii. | Periodic (quarterly) reviews throughout the Plan Year as part of general senior management staff meetings. These reviews should include a review of performance plan year-to-date and any changes that assure attainment of the Plan objectives. |
iv. | A Plan year-end review of probable Plan results, including an estimate of the Company’s performance on each measure/weighted factor. |
v. | A discussion of Plan Participant contribution to the overall team results, as part of the presentation of the annual incentive award. |
XI. | MISCELLANEOUS |
i. | No Guarantee of Employment. This Plan is not an employment policy or contract. It does not give the Plan Participant the right to remain an employee of the Company, nor does it interfere with the Company’s right to discharge the Plan Participant. It also does not require the Plan Participant to remain an employee nor interfere with the Plan Participant’s right to terminate employment at any time. |
ii. | Non Transferability. Benefits under this Plan cannot be sold, transferred, assigned, pledged, attached, or encumbered in any manner. |
iii. | Reorganization. If the Company shall merge into or consolidate with another company, or organize, or sell substantially all of its assets to another company, firm, or person such succeeding or continuing company, firm or person shall succeed to, assume and discharge the obligations of the Company under this Plan. |
iv. | Tax Withholding. The Company shall withhold any taxes that are required to be withheld from the benefits provided under this Plan. |
v. | Applicable Law. The Plan and all rights hereunder shall be governed by the laws of the State of Louisiana, except to the extent preempted by the laws of the United States of America. |
vi. | Entire Plan. This Plan constitutes the entire Plan between the Company and the Plan Participant as to the subject matter hereof. |
vii. | No rights are granted to the Plan Participant by virtue of this Plan other than those specifically set forth herein. |
viii. | Designated Fiduciary. The Company shall be the named fiduciary and Plan Administrator under the Plan. The named fiduciary may delegate to others certain aspects of the management and operation responsibilities of the Plan including the employment of advisors and the delegation of ministerial duties to qualified individuals. |
Tier* | Incentive Ranges | Award Objectives | ||||
Threshold | Target | Maximum | Bank | Regional | Individual | |
I | 5.0% | 30% | Discretionary | 100% | 0% | 0% |
II-A | 5.0% | 25% | Discretionary | 90% | 0% | 10% |
II-B | 5.0% | 25% | Discretionary | 60% | 0% | 40% |
III | 5.0% | 20% | Discretionary | 100% | ||
Percent of Salary | Weighting of Award |
% | ||
% | ||
% |
% | ||
% | ||
% | ||
% |
• | Please PRINT CLEARLY or TYPE the names of the beneficiaries. |
• | To name a trust as beneficiary, please provide the name of the trustee(s) and the exact name and date of the trust agreement. |
• | To name your estate as beneficiary, please write “Estate of [your name]”. |
• | Be aware that none of the contingent beneficiaries will receive anything unless ALL of the primary beneficiaries predecease you. |
Participant Name: | ________________________ |
Number of Performance-Based Restricted Stock Units: | ________________________ |
Measurement Period: | ________________________ |
Performance Objective for RSUs: | ________________________ |
Vesting Schedule for Restricted Stock issued if Performance Objective is Achieved and RSUs become vested: | ________________________ |
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: May 8, 2017 | |
/s/ James R. McLemore | |
Chief Executive Officer and Chief Financial Officer |
/s/ James R. McLemore |
James R. McLemore |
Chief Executive Officer and Chief Financial Officer |
May 8, 2017 |
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Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
May 08, 2017 |
|
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 | 11,383,914 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 2,491 | $ 2,349 |
Unrealized gains on securities available-for-sale: | ||
Unrealized holding gains arising during the year | 820 | 2,802 |
Less: reclassification adjustment for gains on sales of securities available-for-sale | (6) | 0 |
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, before Tax | 814 | 2,802 |
Fair value of derivative instruments designated as cash flow hedges: | ||
Change in fair value of derivative instruments designated as cash flow hedges | 13 | 0 |
Total other comprehensive income, before tax | 827 | 2,802 |
Income tax effect related to items of other comprehensive income | (290) | (980) |
Total other comprehensive income, net of tax | 537 | 1,822 |
Total comprehensive income | $ 3,028 | $ 4,171 |
Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Stockholders' Equity [Abstract] | ||
Dividends on common stock (in dollars per share) | $ 0.09 | $ 0.09 |
Basis of Presentation |
3 Months Ended |
---|---|
Mar. 31, 2017 | |
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 March 31, 2017 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 2016 Annual Report on Form 10-K. The results of operations for the three-month period ended March 31, 2017 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 2016 Annual Report on Form 10-K. Recent Accounting Pronouncements — ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings. ASU 2017-03 addresses and codifies the practical considerations and application of the required disclosures under SAB Topic 11.M for the implementation of ASU 2014-09, Revenue from Contracts with Customers (Topic 606); ASU 2016-02, Leases (Topic 842); and ASU 2016-13, Financial Instruments-Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments. The SEC Staff has emphasized on a number of occasions, including the December 2016 AICPA National Conference on Current SEC and PCAOB Developments, the requirements to disclose the potential material effects of newly issued standards and the importance of providing investors with this information. Such disclosures should explain the impact the new standard is expected to have on the financial statements and how the adoption of the new standard will affect comparability. Entities should discuss both quantitative and qualitative information as available when assessing implementation of a new standard. This ASU was effective immediately for public business entities. ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment was issued in order to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the amendments in this ASU, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity will then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The effective date of this Update is for fiscal years beginning on or after December 15, 2020. The Company does not expect ASU 2017-04 to have an impact on its goodwill impairment tests. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities was issued in response to diversity in practice in the amortization period for premiums of callable debt securities and in how the potential for exercise of a call is factored into current impairment assessments. As such, these amendments reduce the amortization period for certain callable debt securities carried at a premium and require the premium to be amortized over the period not to exceed the earliest call date. These amendments do not apply to securities carried at a discount. The effective date of this Update is for fiscal years beginning on or after December 15, 2018. The Company is currently amortizing premiums of callable debt securities over a period through the earliest call date. As a result, it does not expect ASU 2017-08 to have an impact on its financial position, results of operations or its financial statement disclosures. Accounting Changes, Reclassifications and Restatements — Certain items in prior financial statements have been reclassified to conform to the current presentation. On January 1, 2017, the Company adopted the provisions of ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,”. ASU 2016-09 requires that all income tax effects associated with share-based payment awards be reported in earnings as an adjustment to income tax expense. Previously, excess tax benefits associated with share-based payments awards were recorded in additional paid-in-capital when the excess tax benefits were realized. The requirement to report those income tax effects in earnings has been applied to settlements occurring on or after January 1, 2017. ASU 2016-09 also requires that all income tax-related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows. Previously, income tax benefits at settlement of an award were reported as a reduction to operating cash flows and an increase to financing cash flows to the extent that those benefits exceeded the income tax benefits reported in earnings during the award's vesting period. The Company has elected to apply that change in cash flow classification on a retrospective basis, which resulted in a $126,000 increase to net cash from operating activities and a corresponding decrease to net cash from financing activities in the accompanying consolidated statements of cash flows for 2016, as compared to the amounts previously reported. |
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 $15,000 at March 31, 2017, all of the Company’s CMOs are government-sponsored enterprise (“GSE”) securities. The following table presents the amortized cost and fair value of debt securities at March 31, 2017 by contractual maturity (in thousands). Actual maturities will differ from contractual maturities because of rights to call or repay obligations with or without penalties and scheduled and unscheduled principal payments on mortgage-backed securities and collateralized mortgage obligations.
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. For equity securities, management reviews the near term prospects of the issuer, the nature and cause of the unrealized loss, the severity and duration of the impairments and other factors when determining if an unrealized loss is other than temporary. 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 March 31, 2017, 64 securities had unrealized losses totaling 1.96% of the individual securities’ amortized cost basis and 1.07% of the Company’s total amortized cost basis. Of the 64 securities, 10 had been in an unrealized loss position for over twelve months at March 31, 2017. These 10 securities had an amortized cost basis and unrealized loss of $23.1 million and $684,000, respectively. The unrealized losses on debt securities at March 31, 2017 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 March 31, 2017, 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 March 31, 2017. During the three months ended March 31, 2017, the Company sold 10 securities classified as available-for-sale and 1 security classified as held-to-maturity. Of the available-for-sale securities, 7 securities were sold with gains totaling $108,000 and 3 securities were sold at a loss of $109,000 for a net loss of $1,000. The decision to sell the 1 held-to-maturity security, which was sold at a gain of $7,000, was based on the pre-refunding of the bond which would accelerate the maturity of the bond by 15 years with an anticipated call date within six months. During the three months ended March 31, 2016, the Company did not sell any securities. Securities with an aggregate carrying value of approximately $295.6 million and $293.4 million at March 31, 2017 and December 31, 2016, respectively, were pledged to secure public funds on deposit and for other purposes required or permitted by law. |
Loans |
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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 March 31, 2017, 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 $231.8 million, or 18.2% of total loans. Additionally, the Company’s exposure to loans secured by commercial real estate is monitored. At March 31, 2017, loans secured by commercial real estate (including commercial construction, farmland and multifamily loans) totaled approximately $539.9 million, 48% of which are secured by owner-occupied commercial properties. Of the $539.9 million in loans secured by commercial real estate, $20.6 million, or 3.8%, were on nonaccrual status at March 31, 2017. 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 three months ended March 31, 2017 and 2016 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 $931,000 and $757,000 for the three months ended March 31, 2017 and 2016, respectively. Interest actually received on non-accrual loans subsequent to their transfer to non-accrual status totaled at March 31, 2017 and 2016 was $244,000 and $59,000, 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. All loan relationships with an outstanding commitment balance above a specified threshold are evaluated for potential impairment. All loan relationships with an outstanding commitment balance below the specified threshold are assigned an allowance allocation percentage that is determined by management and adjusted periodically based on certain factors. 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 are categorized into risk categories based on relevant information about the ability of borrowers to serve their debt, such as: current financial information, historical payment experience, credit documentation, public information, current economic trends, and other factors. Loans are analyzed individually and classified according to their credit risk. This analysis is performed on a continuous basis. The following definitions are used for risk ratings: Special Mention: Weakness exists that could cause future impairment, including the deterioration of financial ratios, past due status, and questionable management capabilities. Collateral values generally afford adequate coverage but may not be immediately marketable. Substandard: Specific and well-defined weaknesses exist that may include poor liquidity and deterioration of financial ratios. Currently the borrower maintains the capacity to service the debt. The loan may be past due and related deposit accounts experiencing overdrafts. Immediate corrective action is necessary. Doubtful: Specific weaknesses characterized as Substandard exist that are severe enough to make collection in full unlikely. There is no reliable secondary source of full repayment. Loans classified as Doubtful will usually be placed on non-accrual status. The probability of some loss is extremely high but because of certain important and reasonably specific factors, the amount of loss cannot be determined. Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be Pass rated loans. The 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 March 31, 2017, there was one loan relationship with a pre-modification balance of $2.0 million identified as a TDR after a reduction in payments. There were no defaults on any loans that were modified as TDRs during the preceding twelve months. During the three months ended March 31, 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. This one TDR subsequently defaulted on the modified terms and totaled $5.5 million at March 31, 2016. 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 March 31, 2017, 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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Intangibles | Intangibles A summary of core deposit intangible assets as of March 31, 2017 and December 31, 2016 is as follows (in thousands):
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Text Block] | 5. Derivatives On July 6, 2016, the Company entered into two forward interest rate swap contracts on a reverse repurchase agreement and long-term FHLB advances. The interest rate swap contracts were designated as derivative instruments in a cash flow hedge under ASC Topic 815, Derivatives and Hedging to convert forecasted variable interest payment to a fixed rate and the Company has concluded that the forecasted transactions are probable of occurring. For cash flow hedges, the effective portion of the gain or loss related to the derivative instrument is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. The ineffective portion of the gain or loss is reported in earnings immediately. No ineffectiveness related to the interest rate swaps designated as cash flow hedges was recognized in the consolidated statements of income for the three months ended March 31, 2017. The accumulated net after-tax income related to the effective cash flow hedge included in accumulated other comprehensive income is reflected in Note 6 - Other Comprehensive Income. The following table discloses the notional amounts and fair value of derivative instruments in the Company's balance sheet as of March 31, 2017 and December 31, 2016 (in thousands):
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Other Comprehensive Income |
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Other Comprehensive Income | Other Comprehensive Income The following is a summary of the tax effects allocated to each component of other comprehensive income (in thousands):
The reclassifications out of accumulated other comprehensive loss into net income are presented below (in thousands):
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Earnings Per Common Share |
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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. Derivative Financial Instruments—The fair value of derivatives are determined by an independent valuation firm and are estimated using prices of financial instruments with similar characteristics. As a result, they are classified within Level 2 of the fair value hierarchy. 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. 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 March 31, 2017 and December 31, 2016 (in thousands):
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Subsequent Events (Notes) |
3 Months Ended |
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Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 9. Subsequent Events Classified loans totaled $148.5 million at May 4, 2017, a $1.7 million increase from the $146.8 million of classified loans at March 31, 2017. A total of $25.2 million of downgrades since March 31, 2017 were partially offset by $23.6 million of payoffs of classified loans. |
Basis of Presentation (Policies) |
3 Months Ended |
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Mar. 31, 2017 | |
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 2016 Annual Report on Form 10-K. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings. ASU 2017-03 addresses and codifies the practical considerations and application of the required disclosures under SAB Topic 11.M for the implementation of ASU 2014-09, Revenue from Contracts with Customers (Topic 606); ASU 2016-02, Leases (Topic 842); and ASU 2016-13, Financial Instruments-Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments. The SEC Staff has emphasized on a number of occasions, including the December 2016 AICPA National Conference on Current SEC and PCAOB Developments, the requirements to disclose the potential material effects of newly issued standards and the importance of providing investors with this information. Such disclosures should explain the impact the new standard is expected to have on the financial statements and how the adoption of the new standard will affect comparability. Entities should discuss both quantitative and qualitative information as available when assessing implementation of a new standard. This ASU was effective immediately for public business entities. ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment was issued in order to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the amendments in this ASU, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity will then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The effective date of this Update is for fiscal years beginning on or after December 15, 2020. The Company does not expect ASU 2017-04 to have an impact on its goodwill impairment tests. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities was issued in response to diversity in practice in the amortization period for premiums of callable debt securities and in how the potential for exercise of a call is factored into current impairment assessments. As such, these amendments reduce the amortization period for certain callable debt securities carried at a premium and require the premium to be amortized over the period not to exceed the earliest call date. These amendments do not apply to securities carried at a discount. The effective date of this Update is for fiscal years beginning on or after December 15, 2018. The Company is currently amortizing premiums of callable debt securities over a period through the earliest call date. As a result, it does not expect ASU 2017-08 to have an impact on its financial position, results of operations or its financial statement disclosures. Accounting Changes, Reclassifications and Restatements — Certain items in prior financial statements have been reclassified to conform to the current presentation. On January 1, 2017, the Company adopted the provisions of ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,”. ASU 2016-09 requires that all income tax effects associated with share-based payment awards be reported in earnings as an adjustment to income tax expense. Previously, excess tax benefits associated with share-based payments awards were recorded in additional paid-in-capital when the excess tax benefits were realized. The requirement to report those income tax effects in earnings has been applied to settlements occurring on or after January 1, 2017. ASU 2016-09 also requires that all income tax-related cash flows resulting from share-based payments be reported as operating activities in the statement of cash flows. Previously, income tax benefits at settlement of an award were reported as a reduction to operating cash flows and an increase to financing cash flows to the extent that those benefits exceeded the income tax benefits reported in earnings during the award's vesting period. The Company has elected to apply that change in cash flow classification on a retrospective basis, which resulted in a $126,000 increase to net cash from operating activities and a corresponding decrease to net cash from financing activities in the accompanying consolidated statements of cash flows for 2016, as compared to the amounts previously reported. |
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 following table presents the amortized cost and fair value of debt securities at March 31, 2017 by contractual maturity (in thousands). Actual maturities will differ from contractual maturities because of rights to call or repay obligations with or without penalties and scheduled and unscheduled principal payments on mortgage-backed securities and collateralized mortgage obligations.
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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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Loans (Tables) |
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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 three months ended March 31, 2017 and 2016 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):
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Intangibles (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Core Deposit Intangible Assets | A summary of core deposit intangible assets as of March 31, 2017 and December 31, 2016 is as follows (in thousands):
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Derivatives (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives, Fair Value [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table discloses the notional amounts and fair value of derivative instruments in the Company's balance sheet as of March 31, 2017 and December 31, 2016 (in thousands):
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Other Comprehensive Income (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Tax Effects | The following is a summary of the tax effects allocated to each component of other comprehensive income (in thousands):
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Reclassification Out of Accumulated Other Comprehensive Income | The reclassifications out of accumulated other comprehensive loss into net income are presented below (in thousands):
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Earnings Per Common Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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) |
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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 March 31, 2017 and December 31, 2016 (in thousands):
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Loans - Summary of Loan Portfolio (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
Mar. 31, 2016 |
---|---|---|---|
Loan portfolio [Abstract] | |||
Ending balance | $ 1,272,000 | $ 1,284,082 | $ 1,250,049 |
Less allowance for loan losses | (24,578) | (24,372) | |
Loans, net | 1,247,422 | 1,259,710 | |
Commercial, financial and agricultural | |||
Loan portfolio [Abstract] | |||
Ending balance | 469,815 | 459,574 | 441,160 |
Real estate - construction | |||
Loan portfolio [Abstract] | |||
Ending balance | 100,248 | 100,959 | 84,790 |
Real estate – commercial | |||
Loan portfolio [Abstract] | |||
Ending balance | 464,859 | 481,155 | 467,648 |
Real estate – residential | |||
Loan portfolio [Abstract] | |||
Ending balance | 159,426 | 157,872 | 149,961 |
Installment loans to individuals | |||
Loan portfolio [Abstract] | |||
Ending balance | 75,258 | 82,660 | 103,181 |
Lease financing receivable | |||
Loan portfolio [Abstract] | |||
Ending balance | 969 | 1,095 | 1,590 |
Other | |||
Loan portfolio [Abstract] | |||
Ending balance | $ 1,425 | $ 767 | $ 1,719 |
Loans - Narrative (Details) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2017
USD ($)
industry_concentration
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Dec. 31, 2016
USD ($)
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Financing Receivable, Recorded Investment [Line Items] | ||
Concentration Risk, Percentage | 10.00% | |
Loans exposure in oil and gas industry | $ 231,800 | |
Number of industry segment concentration above threshold limit | industry_concentration | 1 | |
Exposure in the oil and gas industry specified as percentage of total loans | 18.20% | |
Loans with exposure in commercial real estate | $ 539,900 | |
Loans on nonaccrual status | $ 56,443 | $ 62,580 |
Real estate - commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Percentage of CRE loans secured by owner-occupied commercial properties | 48.00% | |
Loans on nonaccrual status | $ 20,623 | $ 28,688 |
Nonaccrual status of loans specified as percentage of total CRE loans | 3.80% |
Intangibles (Details) - Core Deposit Intangible Assets - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 11,674 | $ 11,674 |
Less accumulated amortization | (7,329) | (7,053) |
Net carrying amount | $ 4,345 | $ 4,621 |
Derivatives (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2017
USD ($)
contract
|
Dec. 31, 2016
USD ($)
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Derivative [Line Items] | ||
Number of Interest Rate Derivatives Held | contract | 2 | |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0 | |
Designated as Hedging Instrument [Member] | Interest Rate Contract [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 27,500,000 | $ 27,500,000 |
Other Comprehensive Income - Reclassifications (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
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Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gain on sale of securities, net | $ (6) | $ 0 |
Tax expense | 2 | 0 |
Reclassifications Out of Accumulated Other Comprehensive Loss | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gain on sale of securities, net | (6) | 0 |
Tax expense | 2 | 0 |
Net earnings | $ (4) | $ 0 |
Subsequent Events (Details) - USD ($) $ in Millions |
1 Months Ended | |
---|---|---|
May 05, 2017 |
Mar. 31, 2017 |
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Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Downgrades of classified loans | $ 25.2 | |
Payoffs of classified loans | 23.6 | |
Increase in classified loans | 1.7 | |
Substandard | ||
Subsequent Event [Line Items] | ||
Loans Receivable, Net | $ 146.8 | |
Substandard | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Loans Receivable, Net | $ 148.5 |
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