NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Description of Business
Home Bancorp, Inc., a
Louisiana Corporation (Company), was organized by Home Bank (a federally chartered savings bank and the predecessor of Home Bank, N.A.) (Bank) in May 2008 to facilitate the conversion of the Bank from the mutual to the stock
form (Conversion) of ownership. The Conversion was completed on October 2, 2008, at which time the Company became the holding company for the Bank, with the Company owning all of the issued and outstanding shares of the Banks
common stock. The Company and Bank are headquartered in Lafayette, Louisiana. As of December 31, 2016, the Company was a bank holding company.
As of December 31, 2016, Home Bank, N.A. was a nationally chartered bank. The Bank was originally chartered in 1908 as a Louisiana state chartered
savings association. The Bank converted to a federal mutual savings bank charter in 1993.
In 2010, the Bank expanded into the Northshore (of Lake
Pontchartrain) region through a Federal Deposit Insurance Corporation (FDIC) assisted acquisition of certain assets and liabilities of the former Statewide Bank (Statewide). In July 2011, the Bank expanded into the Greater
New Orleans region through its acquisition of GS Financial Corporation (GSFC), the former holding company of Guaranty Savings Bank (Guaranty). In February 2014, the Bank expanded into west Mississippi through its acquisition
of Britton & Koontz Capital Corporation (Britton & Koontz), the holding company for Britton & Koontz Bank, N.A. (Britton & Koontz Bank) of Natchez, Mississippi. In September 2015, the Bank
expanded its existing presence in the Greater New Orleans region through the acquisition of Louisiana Bancorp, Inc. (Louisiana Bancorp), the former holding company of Bank of New Orleans (BNO) of Metairie, Louisiana. As of
December 31, 2016, the Bank conducted business from 29 banking offices in the Greater Lafayette, Northshore, Baton Rouge and Greater New Orleans regions of south Louisiana and west Mississippi.
The Bank is primarily engaged in attracting deposits from the general public and using those funds to invest in loans and investment securities. The
Banks principal sources of funds are customer deposits, repayments of loans, repayments of investments and funds borrowed from outside sources such as the Federal Home Loan Bank (FHLB) of Dallas. The Bank derives its income
principally from interest earned on loans and investment securities and, to a lesser extent, from fees received in connection with the origination of loans, service charges on deposit accounts and for other services. The Banks primary expenses
are interest expense on deposits and borrowings and general operating expenses.
The Banks primary regulator is the Office of the Comptroller of the
Currency (OCC). Its deposits are insured to the maximum amount permissible under federal law by the FDIC. In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) was passed by Congress.
The Dodd-Frank Act, among other things, imposed new restrictions and an expanded framework of regulatory oversight for financial institutions and their holding companies, including the Bank and the Company. The Dodd-Frank Act also created the
Consumer Financial Protection Bureau (CFPB) that has the authority to promulgate rules intended to protect consumers in the financial products and services market. Because many of the regulations under the new law have not been
promulgated, we cannot determine the full impact on our business and operations at this time.
2. Summary of Significant Accounting Policies
Principles of Consolidation
The consolidated financial
statements include the accounts of the Company and the Bank. All significant intercompany balances and transactions have been eliminated in consolidation.
46
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (GAAP) requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses,
income taxes, valuation of investments with other-than-temporary impairment, acquisition accounting valuations and valuation of share-based compensation.
Cash and Cash Equivalents
For purposes of reporting cash
flows, cash and cash equivalents include cash on hand, due from banks and interest-bearing deposits with the FHLB. The Company considers all highly liquid debt instruments with original maturities of three months or less (excluding interest-bearing
deposits in banks) to be cash equivalents.
The Bank is required to maintain cash reserves with the Federal Reserve Bank. The requirement is dependent
upon the Banks cash on hand or noninterest-bearing balances. There was no reserve requirement as of December 31, 2016 and 2015. The Bank was in compliance with reserve requirements at such dates.
Investment Securities
The Company follows the guidance
under the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320,
Investments Debt and Equity Securities
. This standard addresses the accounting and reporting for investments in
equity securities that have readily determinable fair values and for all investments in debt securities. Under the topic, investment securities, which the Company both positively intends and has the ability to hold to maturity, are classified as
held to maturity and carried at amortized cost.
Investment securities that are acquired with the intention of being resold in the near term are
classified as trading securities under ASC 320 and are carried at fair value, with unrealized holding gains and losses recognized in current earnings. The Company did not hold any securities for trading purposes at, or during the years ended,
December 31, 2016 or 2015.
Securities not meeting the criteria of either trading securities or held to maturity are classified as available for sale
and are carried at fair value. Unrealized holding gains and losses for these securities are recognized, net of related income tax effects in the Consolidated Statements of Comprehensive Income.
Interest income earned on securities either held to maturity or available for sale is included in current earnings, including the amortization of premiums and
the accretion of discounts using the interest method. Premiums and discounts are amortized or accreted over the life of the related security as an adjustment to the yield. The gain or loss realized on the sale of securities classified as available
for sale or held to maturity, as determined using the specific identification method for determining the cost of the securities sold, is computed with reference to its amortized cost and is also included in current earnings.
The Company reviews investment securities for other-than-temporary impairment quarterly. Impairment is considered to be other-than-temporary if it is likely
that all amounts contractually due will not be received for debt securities and when there is no positive evidence indicating that an investments carrying amount is recoverable in the near term for equity securities. When a decline in the fair
value of available for sale and held to maturity securities below cost is deemed to be credit related, a charge for other-than-temporary impairment is included in earnings as Other-than-temporary impairment of securities. The decline in
fair value attributed to
non-credit
related factors is recognized in other comprehensive income and a new cost basis for the security is established. The new cost basis is not changed for subsequent recoveries
in fair value. Increases and decreases between fair value and cost on available for sale securities are reflected in the Consolidated Statements of Comprehensive Income. In evaluating whether impairment is temporary or other-than-temporary, the
Company considers, among other things, the time period the security has been in an unrealized loss position; the financial condition of the issuer and its industry; recommendations of investment advisors; economic forecasts; market or industry
trends; changes in tax laws, regulations, or other governmental policies significantly affecting the issuer;
47
any downgrades from rating agencies; and any reduction or elimination of dividends. The Companys intent and
ability to hold a security for a period of time sufficient to allow for any anticipated recovery in fair value is also considered.
Loans Held for Sale
The Company sells mortgage loans and loan participations for an amount equal to the principal amount of loans or participations with yields to
investors based upon current market rates. Realized gains and losses related to loan sales are included in noninterest income.
The Company allocates the
cost to acquire or originate a mortgage loan between the loan and the right to service the loan if it intends to sell or securitize the loan and retain servicing rights. In addition, the Company periodically assesses capitalized mortgage servicing
rights for impairment based on the fair value of such rights. To the extent that temporary impairment exists, write-downs are recognized in current earnings as an adjustment to the corresponding valuation allowance. Permanent impairment is
recognized through a write-down of the asset with a corresponding reduction in the valuation allowance. For purposes of performing its impairment evaluation, the portfolio is stratified on the basis of certain risk characteristics, including loan
type and interest rates. Capitalized servicing rights are amortized over the period of, and in proportion to, estimated net servicing income, which considers appropriate prepayment assumptions.
For financial reporting purposes, the Company classifies a portion of its loans as Mortgage loans held for sale. Included in this category are
loans which the Company has the current intent to sell and loans which are available to be sold in the event that the Company determines that loans should be sold to support the Companys investment and liquidity objectives, as well as to
support its overall asset and liability management strategies. Loans included in this category for which the Company has the current intention to sell are recorded at the lower of aggregate cost or fair value. As of December 31, 2016 and 2015,
the Company had $4,156,000 and $5,651,000, respectively, in loans classified as Mortgage loans held for sale.
As of December 31, 2016
and 2015 the Company had $188,103,000 and $226,379,000, respectively, outstanding in loans sold to government agencies that it was servicing through a third party.
Loans
The following describes the distinction between
originated and Acquired Loans and certain significant accounting policies relevant to each category.
Originated Loans
Loans are carried net of discounts on loan originations are amortized using the level yield interest method over the remaining contractual life of the loan.
Nonrefundable loan origination fees, net of direct loan origination costs, are deferred and recognized over the life of the loan as an adjustment of yield using the interest method.
Interest on loans receivable is accrued as earned using the interest method over the life of the loan. Interest on loans deemed uncollectible is excluded from
income. The accrual of interest is discontinued and reversed against current income once loans become more than 90 days past due or earlier if conditions warrant. The past due status of loans is determined based on the contractual terms. When a loan
is placed on nonaccrual status, previously accrued and uncollected interest is charged against interest income on loans. Interest payments are applied to reduce the principal balance on nonaccrual loans. Loans are returned to accrual status when all
past due payments are received in full and future payments are probable.
Third party property valuations are obtained at the time of origination for real
estate secured loans. When a determination is made that a loan has deteriorated to the point of being deemed a criticized or classified loan, updated valuations may be ordered to help determine if there is impairment, which may lead to a
recommendation for partial charge off or appropriate allowance allocation. Property valuations are ordered through, and reviewed by, the Companys Appraisal and Review Department. The Company typically orders an as is valuation for
collateral property if the loan is in a criticized loan classification.
Loans, or portions of loans, are charged off in the period that such loans, or
portions thereof, are deemed uncollectible. The collectability of individual loans is determined through an estimate of the fair value of the underlying collateral and/or assessment of the financial condition and repayment capacity of the borrower.
48
Acquired Loans
Acquired Loans at December 31, 2016 and 2015 are those associated with our acquisitions of Statewide, GSFC, Britton & Koontz and Louisiana
Bancorp. These loans were recorded at estimated fair value at the acquisition date with no carryover of the related allowance for loan losses. The Acquired Loans were segregated between those considered to be performing (acquired
performing) and those with evidence of credit deterioration (acquired impaired), and then further segregated into loan pools designed to facilitate the development of expected cash flows. The fair value estimate for each pool of
acquired performing and acquired impaired loans was based on the estimate of expected cash flows, both principal and interest, from that pool, discounted at prevailing market interest rates.
The difference between the fair value of an acquired performing loan pool and the contractual amounts due at the acquisition date (the fair value
discount) is accreted into income over the estimated life of the pool. Management estimates an allowance for loan losses for acquired performing loans using a methodology similar to that used for originated loans. The allowance determined for
each loan pool is compared to the remaining fair value discount for that pool. If the allowance amount calculated under the Companys methodology is greater than the Companys remaining discount, the additional amount called for is added
to the reported allowance through a provision for loan losses. If the allowance amount calculated under the Companys methodology is less than the Companys recorded discount, no additional allowance or provision is recognized. Actual
losses first reduce any remaining fair value discount for the loan pool. Once the discount is fully depleted, losses are applied against the allowance established for that pool. Acquired performing loans are placed on nonaccrual status and
considered and reported as nonperforming or past due using the same criteria applied to the originated portfolio.
The excess of cash flows expected to be
collected from an acquired impaired loan pool over the pools estimated fair value at acquisition is referred to as the accretable yield and is recognized in interest income using an effective yield method over the remaining life of the pool.
Each pool of acquired impaired loans is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows.
Management recasts the estimate of cash flows expected to be collected on each acquired impaired loan pool periodically. If the present value of expected cash
flows for a pool is less than its carrying value, an impairment is recognized by an increase in the allowance for loan losses and a charge to the provision for loan losses. If the present value of expected cash flows for a pool is greater than its
carrying value, any previously established allowance for loan losses is reversed and any remaining difference increases the accretable yield which will be taken into interest income over the remaining life of the loan pool. Acquired impaired loans
are generally not subject to individual evaluation for impairment and are not reported with impaired loans, even if they would otherwise qualify for such treatment.
Certain loans purchased in the Statewide acquisition are covered by loss sharing agreements between the FDIC and the Company. Historically, the Company has
referred to loans subject to loss share agreements with the FDIC as covered loans. However, in March 2015, a significant portion of the loss sharing agreements had expired and any future losses on these formerly covered loans are no
longer eligible for reimbursement from the FDIC. As of December 31, 2016, only residential mortgage loans acquired from Statewide remained subject to loss sharing agreements with the FDIC. The Companys remaining loans subject to loss
sharing agreements with the FDIC amounted to approximately $2.8 million, or less than 0.2% of the Companys total loan portfolio at such date. Given the limited amount of covered loans remaining, the Company is no longer reporting such
loans as covered loans, and they are included in Acquired Loans.
Allowance for Loan Losses
The allowance for loan losses on loans in our portfolio is maintained at an amount which management believes covers the reasonably estimable and probable
losses on such portfolio. The allowance for loan losses is comprised of specific and general reserves. The Company determines specific reserves based on the provisions of ASC 310,
Receivables
. The Companys allowance for loan losses
includes a measure of impairment related to those loans specifically identified for evaluation under the topic. This measurement is based on a comparison of the recorded investment in the loan with either the expected cash flows discounted using the
loans original
49
effective interest rate, observable market price for the loan or the fair value of the collateral underlying certain collateral-dependent loans. General reserves are based on managements
evaluation of many factors, including current economic trends, industry experience, historical loss experience (generally three years), industry loan concentrations, the borrowers abilities to repay and repayment performance, probability of
foreclosure and estimated collateral values. As these factors change, adjustments to the allowance for loan losses are charged to current operations. Loans that are determined to be uncollectible are
charged-off
against the allowance for loan losses once that determination is made.
While management uses
available information to make loan loss allowance evaluations, adjustments to the allowance may be necessary based on changes in economic and other conditions or changes in accounting guidance. The OCC, as an integral part of its examination
processes, periodically reviews the allowance for loan losses. The OCC may require the recognition of adjustments to the allowance for loan losses based on its judgment of information available to it as of the time of its examinations. To the extent
the OCCs estimates differ from managements estimates, additional provisions to the allowance for loan losses may be required as of the time of its examination. As part of the risk management program, an independent review is performed on
the loan portfolio, which supplements managements assessment of the loan portfolio and the allowance for loan losses. The result of the independent review is reported directly to the Audit Committee of the Board of Directors.
Repossessed Assets
Repossessed assets are recorded at
fair value less estimated selling costs at the date acquired or upon receiving new property valuations. Costs relating to the development and improvement of foreclosed property are capitalized, and costs relating to holding and maintaining the
property are expensed. Write-downs from cost to fair value at the date
s
of foreclosure are charged against the allowance for loan losses. Valuations are performed periodically and a charge to operations is recorded if the carrying
value of a property exceeds its fair value less selling costs. Generally, the Company appraises the property at the time of foreclosure and at least every 12 months following the foreclosure. The Company had $2,893,000 and $3,128,000 of repossessed
assets as of December 31, 2016 and 2015, respectively. Repossessed Assets are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition.
Federal Home Loan Bank Stock
As a member of the FHLB,
the Bank is required to maintain a minimum investment in its stock that varies with the level of FHLB advances outstanding. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable
fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment in accordance with GAAP. The stocks value is determined by the ultimate recoverability of the par value rather than by recognizing temporary
declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time
this situation has persisted, (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the
customer base of the FHLB and (d) the liquidity position of the FHLB.
Office Properties and Equipment
Office properties and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method with rates based on
the estimated useful lives of the individual assets, which range from 3 to 40 years. Expenditures which substantially increase the useful lives of existing property and equipment are capitalized while routine expenditures for repairs and maintenance
are expensed as incurred.
Cash Surrender Value of Bank-owned Life Insurance
Life insurance contracts represent single premium life insurance contracts on the lives of certain officers of the Bank. The Bank is the beneficiary of these
policies. These contracts are reported at their cash surrender value and changes in the cash surrender value are included in noninterest income.
Intangible Assets
Intangible assets consist of goodwill,
core deposit intangibles and mortgage servicing rights. These assets are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition. Goodwill represents the excess purchase
price over the fair value of net assets acquired in business acquisitions.
50
Goodwill is not amortized but rather is evaluated for impairment at least annually. Core deposit intangibles represent the estimated value related to customer deposit relationships assumed in the
Companys acquisitions. Core deposit intangibles are being amortized over nine to 15 years. The mortgage servicing rights represent servicing assets related to mortgage loans sold and serviced at fair value. Mortgage servicing rights are
being amortized over a maximum of 10 years using an accelerated method.
Shareholders Equity
Effective January 1, 2015, companies incorporated under Louisiana law became subject to the Louisiana Business Corporation Act. Provisions of the
Louisiana Business Corporation Act eliminate the concept of treasury stock and provide that shares reacquired by a company are to be treated as authorized but unissued shares. Accounting principles generally accepted in the United States of America
state that accounting for treasury stock shall conform to state law. The Companys Consolidated Financial Statements at and for the years ended December 31, 2015 and 2016 reflect this change. For the years ended December 31, 2016 and
2015, the cost of shares repurchased by the Company have been allocated to common stock, additional
paid-in
capital and retained earnings.
Transfer of Financial Assets
Transfers of financial
assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right, free of
conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity.
Salary Continuation Agreements
The Company records
the expense associated with its salary continuation agreements over the service periods of the persons covered under these agreements.
Income Taxes
The Company accounts for income taxes under the liability method. Deferred tax assets and liabilities are recorded for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Future tax benefits are recognized to the extent that realization of such benefits is more likely than
not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect of a change in tax rates on
deferred tax assets and liabilities is recognized in income taxes during the period that includes the enactment date.
In the event the future tax
consequences of differences between the financial reporting bases and the tax bases of the Companys assets and liabilities results in deferred tax assets, an evaluation of the probability of being able to realize the future benefits indicated
by such asset is required. A valuation allowance is provided for the portion of the deferred tax asset when it is more likely than not that some or all of the deferred tax asset will not be realized. In assessing the realizability of the deferred
tax assets, management considers the scheduled reversals of deferred tax liabilities, projected future taxable earnings and tax planning strategies.
The
income tax benefit or expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities.
A tax
position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination presumed to occur. The amount recognized is the largest amount of tax benefit that is
greater than 50 percent likely of being realized on examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded.
The Company recognizes interest and penalties accrued related to unrecognized tax benefits, if applicable, in noninterest expense. During the years ended
December 31, 2016, 2015, and 2014, the Company did not recognize any interest or penalties in its financial statements, nor has it recorded an accrued liability for interest or penalty payments.
51
Stock-based Compensation Plans
The Company issues stock options under the 2009 Stock Option Plan and the 2014 Equity Incentive Plan to directors, officers and other key employees. In
accordance with the requirements of ASC 718,
Compensation Stock Compensation
, the Company has adopted a fair value based method of accounting for employee stock compensation plans, whereby compensation cost is measured as of the grant
date based on the fair value of the award and is recognized over the service period, which is usually the vesting period.
The Company may issue
restricted stock under the 2009 Recognition and Retention Plan and restricted stock or restricted stock units under the 2014 Equity Incentive Plan for directors, officers and other key employees. Awards under the plans may not be sold or otherwise
transferred until certain restrictions have lapsed. The unearned compensation related to these awards is amortized to compensation expense over the service period, which is usually the vesting period. The total share-based compensation expense for
these awards is determined based on the market price of the Companys common stock as of the date of grant applied to the total number of shares granted and is amortized over the vesting period.
Earnings Per Share
Earnings per share represents income
available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares
had been issued, as well as any adjustment to income that would result from the assumed issuance.
Comprehensive Income
GAAP generally requires that recognized revenues, expenses, gains and losses be included in net earnings. Although certain changes in assets and liabilities,
such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheets, such items, along with net earnings, are components of comprehensive income. The tax effect for
unrealized gains and losses on investment securities was ($463,072), ($230,670) and $598,203 for the periods ending December 31, 2016, 2015 and 2014, respectively. The reclassification adjustment for gains included in net income had a tax
effect of $0, ($2,548) and ($639) for the periods ending December 31, 2016, 2015 and 2014. Comprehensive income is reflected in the Consolidated Statements of Comprehensive Income.
Reclassifications
Certain reclassifications have been
made to prior period balances to conform to the current period presentation.
Recent Accounting Pronouncements
In January 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)
2016-01,
Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU amendments include changes related to how certain equity investments are measured, recognize changes in the
fair value of certain financial liabilities measured under the fair value option, and disclose and present financial assets and liabilities on the Companys consolidated financial statements. Additionally, the ASU will also require entities to
present financial assets and financial liabilities separately, grouped by measurement category and form of financial asset in the statement of financial position or in the accompanying notes to the financial statements. Entities will also no longer
have to disclose the methods and significant assumptions for financial instruments measured at amortized cost, but will be required to measure such instruments under the exit price notion for disclosure purposes. The ASU is effective for
annual and interim periods beginning after December 15, 2017. The Company is currently assessing the Amendment but does not anticipate it will have a material impact on Consolidated Financial Statements.
In February 2016, the FASB issued ASU
2016-02,
Conforming Amendments Related to Leases. This ASU amends
the codification regarding leases in order to increase transparency and comparability. The ASU requires companies to recognize lease assets and liabilities on the statement of condition and disclose key information about leasing arrangements. A
lessee would recognize a liability to make lease payments and a
right-of-use
asset representing its right to use the leased asset for the lease term. The ASU is
effective for annual and interim periods beginning after December 15, 2018. The Company is currently assessing the amendment but does not anticipate it will have a material impact on our Consolidated Financial Statements. Based on the
Companys preliminary assessment of its current leases, the impact to the Companys consolidated balance sheet is estimated to be less than a 1% increase in assets and liabilities.
52
In March 2016, the FASB issued ASU
2016-09,
Improvements to
Employee Share-Based Payment Accounting. The ASU amends the codification to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or
liabilities, and classification in the statement of cash flows. This ASU is effective for annual and interim periods beginning after December 15, 2016, with early adoption permitted. The Company elected to early adopt
this ASU effective January 1, 2016. The Company elected to account for forfeitures as they occur. The adoption of ASU
2016-09
reduced income tax expense by $524,000 in 2016.
In June 2016, the FASB issued ASU
2016-13,
Measurement of Credit Losses on Financial Instruments. The ASU
requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost
basis of the financial assets to present the net carrying value at the amount expected to be collected on the financial assets. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the
expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and
reasonable and supportable forecasts that affect the collectability of the reported amount of financial assets. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. The
allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination that are measured at amortized cost basis is determined in a similar manner to other financial assets measured
at amortized cost basis; however, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Only subsequent changes in the allowance for credit losses are recorded as a credit loss
expense for these assets.
Off-balance-sheet
arrangements such as commitments to extend credit, guarantees, and standby letters of credit that and are not unconditionally cancellable are also within the scope
of this amendment. Credit losses relating to
available-for-sale
debt securities should be recorded through an allowance for credit losses. This ASU is effective for
fiscal years beginning after December 31, 2019. An entity will apply the amendments in this update on a modified retrospective basis, through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period
in which the guidance is effective. The Company is currently assessing the implementation of this accounting standard. It is too early to assess the impact that this guidance will have on our Consolidated Financial Statements.
In August 2016, FASB issued ASU
No. 2016-15,
Statement of Cash Flows (Topic 230): Classification of Certain Cash
Receipts and Cash Payments. The amendments in this ASU clarify the proper classification for certain cash receipts and cash payments, including clarification on debt prepayment or debt extinguishment costs, settlement of
zero-coupon
debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and proceeds from the settlement of corporate-owned life insurance
policies, including bank-owned life insurance policies, among others. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is currently
assessing the amendment but does not anticipate it will have a material impact on our Consolidated Financial Statements.
3. Acquisition Activity
Louisiana Bancorp, Inc.
On September 15, 2015, the Company acquired Louisiana Bancorp, Inc., the former holding company of Bank of New
Orleans of Metairie, Louisiana. Assets acquired from Louisiana Bancorp totaled $352,897,000, which included loans of $281,583,000, investment securities of $36,420,000 and cash of $14,098,000. The Bank also recorded a core deposit intangible asset
of $1,586,000 and goodwill of $8,454,000 relating to the acquisition of Louisiana Bancorp, and assumed liabilities of $291,313,000, which included $208,670,000 in deposits and $75,957,000 in FHLB advances. None of the loans acquired were considered
impaired as of the date of acquisition.
Britton
& Koontz Capital Corporation.
On February 14, 2014, the Company
acquired Britton & Koontz, the former holding company of Britton & Koontz Bank of Natchez, Mississippi. Assets acquired from Britton & Koontz totaled $298,930,000, which included loans of $162,581,000, investment
securities of $97,985,000 and cash of $15,342,000. The Bank also recorded a core deposit intangible asset of $3,030,000 and goodwill of $43,000 relating to the acquisition of Britton & Koontz, and assumed liabilities of $264,458,000, which
included $216,600,000 in deposits, $9,252,000 in FHLB advances and $27,291,000 in other borrowings.
53
Acquired loans which are impaired as of the date of acquisition are accounted for under ASC
310-30,
Loans and Debt Securities Acquired with Deteriorated Credit Quality
. The nonaccretable difference on loans acquired from Britton & Koontz totaled $17,946,000 as of February 14, 2014 and
represented an estimate of the undiscounted loss exposure in the acquired loans with deteriorated credit quality as of the acquisition date.
The
following table summarizes the accretable yield on the loans acquired from Britton & Koontz with deteriorated credit quality as of February 14, 2014 and the changes therein through December 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Balance, beginning of period
|
|
$
|
(1,682
|
)
|
|
$
|
(1,824
|
)
|
|
$
|
|
|
Acquisition accretable yield
|
|
|
|
|
|
|
|
|
|
|
(2,260
|
)
|
Accretion
|
|
|
1,072
|
|
|
|
590
|
|
|
|
436
|
|
Net transfers from nonaccretable difference to accretable yield
|
|
|
(1,172
|
)
|
|
|
(448
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
(1,782
|
)
|
|
$
|
(1,682
|
)
|
|
$
|
(1,824
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016, the weighted average remaining contractual life of the loan portfolio acquired with deteriorated
credit quality from Britton & Koontz was 0.8 year.
GS Financial Corp.
On July 15, 2011, the Company acquired GSFC, the former
holding company of Guaranty Savings Bank of Metairie, Louisiana. Assets acquired from GSFC totaled $256,677,000, which included loans of $182,440,000, investment securities of $46,481,000 and cash of $9,262,000. The Bank also recorded a core deposit
intangible asset of $859,000 and goodwill of $296,000 relating to the acquisition of GSFC, and assumed liabilities of $230,614,000, which included $193,518,000 in deposits and $34,707,000 in FHLB advances.
The nonaccretable difference on loans acquired from GSFC totaled $5,490,000 as of July 15, 2011 and represented an estimate of the undiscounted loss
exposure in the acquired loans with deteriorated credit quality as of the acquisition date.
The following table summarizes the accretable yield on the
loans acquired from GSFC with deteriorated credit quality as of July 15, 2011 and the changes therein through December 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Balance, beginning of period
|
|
$
|
(1,240
|
)
|
|
$
|
(1,270
|
)
|
|
$
|
(1,281
|
)
|
Acquisition accretable yield
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion
|
|
|
942
|
|
|
|
30
|
|
|
|
11
|
|
Net transfers from nonaccretable difference to accretable yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
(298
|
)
|
|
$
|
(1,240
|
)
|
|
$
|
(1,270
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016, the weighted average remaining contractual life of the loan portfolio acquired with deteriorated
credit quality from GSFC was 5.9 years.
Statewide Bank.
On March 12, 2010, the Bank acquired certain assets and liabilities of the former
Statewide Bank, a full-service community bank formerly headquartered in Covington, Louisiana, from the FDIC. As a result of the Statewide acquisition, the Banks branch office network was expanded to include six branches in the Northshore (of
Lake Pontchartrain) region of Louisiana. Assets acquired in the Statewide transaction totaled $188,026,000, which included loans of $110,415,000, investment securities of $24,841,000 and cash of $11,569,000. In addition, the Bank recorded an FDIC
Asset, representing the portion of estimated losses covered by loss sharing agreements between the Bank and the FDIC, of $34,422,000. The loss sharing agreements between the Bank and the FDIC afforded us significant protection against losses in the
loan portfolio and repossessed assets acquired in the Statewide transaction. The Bank also recorded a core deposit intangible asset of $1,429,000 and goodwill of $560,000 relating to the Statewide acquisition, and assumed liabilities of
$223,910,000, which included $206,925,000 in deposits and $16,824,000 in FHLB advances.
54
The following table summarizes the accretable yield on the loans acquired from Statewide as of March 12,
2010 and the changes therein through December 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Balance, beginning of period
|
|
$
|
(13,870
|
)
|
|
$
|
(7,706
|
)
|
|
$
|
(2,134
|
)
|
Acquisition accretable yield
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion
|
|
|
4,859
|
|
|
|
3,238
|
|
|
|
8,121
|
|
Net transfers from nonaccretable difference to accretable yield
|
|
|
|
|
|
|
(9,402
|
)
|
|
|
(13,693
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
(9,011
|
)
|
|
$
|
(13,870
|
)
|
|
$
|
(7,706
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016, the weighted average remaining contractual life of loan portfolio acquired with deteriorated
credit quality from Statewide was 4.9 years.
4. Investment Securities
Summary information regarding the Companys investment securities classified as available for sale and held to maturity as of December 31, 2016 and
2015 follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross Unrealized
Losses
|
|
|
Fair Value
|
|
December 31, 2016
|
|
|
|
|
|
|
|
Less Than
1 Year
|
|
|
Over 1
Year
|
|
|
|
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
148,511
|
|
|
$
|
984
|
|
|
$
|
980
|
|
|
$
|
290
|
|
|
$
|
148,225
|
|
Non-U.S.
agency mortgage-backed
|
|
|
5,043
|
|
|
|
38
|
|
|
|
1
|
|
|
|
44
|
|
|
|
5,036
|
|
Municipal bonds
|
|
|
21,212
|
|
|
|
260
|
|
|
|
44
|
|
|
|
|
|
|
|
21,428
|
|
U.S. government agency
|
|
|
8,946
|
|
|
|
95
|
|
|
|
|
|
|
|
|
|
|
|
9,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available for sale
|
|
$
|
183,712
|
|
|
$
|
1,377
|
|
|
$
|
1,025
|
|
|
$
|
334
|
|
|
$
|
183,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal bonds
|
|
$
|
13,365
|
|
|
$
|
69
|
|
|
$
|
72
|
|
|
$
|
|
|
|
$
|
13,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total held to maturity
|
|
$
|
13,365
|
|
|
$
|
69
|
|
|
$
|
72
|
|
|
$
|
|
|
|
$
|
13,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross Unrealized
Losses
|
|
|
Fair Value
|
|
December 31, 2015
|
|
|
|
|
|
|
|
Less Than
1 Year
|
|
|
Over 1
Year
|
|
|
|
|
Available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
134,748
|
|
|
$
|
1,464
|
|
|
$
|
287
|
|
|
$
|
447
|
|
|
$
|
135,478
|
|
Non-U.S.
agency mortgage-backed
|
|
|
6,055
|
|
|
|
51
|
|
|
|
|
|
|
|
41
|
|
|
|
6,065
|
|
Municipal bonds
|
|
|
22,453
|
|
|
|
490
|
|
|
|
10
|
|
|
|
|
|
|
|
22,933
|
|
U.S. government agency
|
|
|
12,166
|
|
|
|
145
|
|
|
|
25
|
|
|
|
|
|
|
|
12,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total available for sale
|
|
$
|
175,422
|
|
|
$
|
2,150
|
|
|
$
|
322
|
|
|
$
|
488
|
|
|
$
|
176,762
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal bonds
|
|
$
|
13,927
|
|
|
$
|
239
|
|
|
$
|
45
|
|
|
$
|
|
|
|
$
|
14,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total held to maturity
|
|
$
|
13,927
|
|
|
$
|
239
|
|
|
$
|
45
|
|
|
$
|
|
|
|
$
|
14,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55
Management evaluates securities for other-than-temporary impairment at least semi-annually, and more frequently
when economic and market conditions warrant such evaluations. Consideration is given to (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the Companys intent to
sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost, which may extend to maturity and our ability and intent to hold the security for a period of time that allows
for the recovery in value in the case of equity securities.
The Company performs a process to identify securities that could potentially have a credit
impairment that is other-than-temporary. This process involves evaluating each security for impairment by monitoring credit performance, collateral type, collateral geography, bond credit support,
loan-to-value
ratios, credit scores, loss severity levels, pricing levels, downgrades by rating agencies, cash flow projections and other factors as indicators of potential credit issues. When the Company
determines that a security is deemed to be other than temporarily impaired, an impairment loss is recognized.
As of December 31, 2016, 83 of the
Companys debt securities had unrealized losses totaling 1.5% of the individual securities amortized cost basis and 0.7% of the Companys total amortized cost basis of the investment securities portfolio. 10 of the 83 securities had
been in a continuous loss position for over 12 months at such date. The 10 securities had an aggregate amortized cost basis and unrealized loss of $11,060,000 and $334,000, respectively, at December 31, 2016. Management has the intent and
ability to hold these debt securities until maturity or until anticipated recovery. No declines in these 83 securities were deemed to be other-than-temporary.
The amortized cost and estimated fair value by maturity of the Companys investment securities as of December 31, 2016 are shown in the following
tables. Securities are classified according to their contractual maturities without consideration of principal amortization, potential prepayments or call options. The expected maturity of a security may differ from its contractual maturity because
of the exercise of call options and potential paydowns. Accordingly, actual maturities may differ from contractual maturities.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
One Year
or Less
|
|
|
After One
Year through
Five Years
|
|
|
After Five
Years
through Ten
Years
|
|
|
After Ten
Years
|
|
|
Total
|
|
Fair Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
65
|
|
|
$
|
4,463
|
|
|
$
|
41,400
|
|
|
$
|
102,297
|
|
|
$
|
148,225
|
|
Non-U.S.
agency mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,036
|
|
|
|
5,036
|
|
Municipal bonds
|
|
|
1,877
|
|
|
|
10,024
|
|
|
|
8,722
|
|
|
|
805
|
|
|
|
21,428
|
|
U.S. government agency
|
|
|
1,011
|
|
|
|
5,023
|
|
|
|
|
|
|
|
3,007
|
|
|
|
9,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities available for sale
|
|
$
|
2,953
|
|
|
$
|
19,510
|
|
|
$
|
50,122
|
|
|
$
|
111,145
|
|
|
$
|
183,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal bonds
|
|
$
|
|
|
|
$
|
2,730
|
|
|
$
|
7,948
|
|
|
$
|
2,684
|
|
|
$
|
13,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities held to maturity
|
|
$
|
2,953
|
|
|
$
|
22,240
|
|
|
$
|
58,070
|
|
|
$
|
113,829
|
|
|
$
|
197,092
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
One Year
or Less
|
|
|
After One
Year through
Five Years
|
|
|
After Five
Years
through Ten
Years
|
|
|
After
Ten Years
|
|
|
Total
|
|
Amortized Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
63
|
|
|
$
|
4,426
|
|
|
$
|
41,396
|
|
|
$
|
102,626
|
|
|
$
|
148,511
|
|
Non-U.S.
agency mortgage-backed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,043
|
|
|
|
5,043
|
|
Municipal bonds
|
|
|
1,876
|
|
|
|
9,925
|
|
|
|
8,651
|
|
|
|
760
|
|
|
|
21,212
|
|
U.S. government agency
|
|
|
999
|
|
|
|
4,993
|
|
|
|
|
|
|
|
2,954
|
|
|
|
8,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities available for sale
|
|
$
|
2,938
|
|
|
$
|
19,344
|
|
|
$
|
50,047
|
|
|
$
|
111,383
|
|
|
$
|
183,712
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities held to maturity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal bonds
|
|
$
|
|
|
|
$
|
2,723
|
|
|
$
|
7,900
|
|
|
$
|
2,742
|
|
|
$
|
13,365
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities held to maturity
|
|
$
|
2,938
|
|
|
$
|
22,067
|
|
|
$
|
57,947
|
|
|
$
|
114,125
|
|
|
$
|
197,077
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended December 31, 2016, the Company recorded no gross gains or losses related to the sale of investment
securities. For the year ended December 31, 2015, the Company recorded gross gains of $8,000 and gross losses of $1,000 related to the sale of investment securities.
As of December 31, 2016 and 2015, the Company had accrued interest receivable for investment securities of $802,000 and $784,000, respectively.
As of December 31, 2016 and 2015, the Company had $91,773,000 and $94,661,000, respectively, of securities pledged to secure public deposits.
5. Loans
The Companys loans, net of unearned
income, consisted of the following as of December 31 of the years indicated.
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
341,883
|
|
|
$
|
371,238
|
|
Home equity loans and lines
|
|
|
88,821
|
|
|
|
94,060
|
|
Commercial real estate
|
|
|
427,515
|
|
|
|
405,379
|
|
Construction and land
|
|
|
141,167
|
|
|
|
136,803
|
|
Multi-family residential
|
|
|
46,369
|
|
|
|
43,863
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
1,045,755
|
|
|
|
1,051,343
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
139,810
|
|
|
|
125,108
|
|
Consumer
|
|
|
42,268
|
|
|
|
47,915
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
182,078
|
|
|
|
173,023
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
1,227,833
|
|
|
$
|
1,224,366
|
|
|
|
|
|
|
|
|
|
|
57
A summary of activity in the Companys allowance for loan losses for the years ended December 31, 2016,
2015 and 2014 is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2016
|
|
(dollars in
thousands)
|
|
Beginning
Balance
|
|
|
Charge-offs
|
|
|
Recoveries
|
|
|
Provision
|
|
|
Ending
Balance
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
1,372
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
64
|
|
|
$
|
1,436
|
|
Home equity loans and lines
|
|
|
536
|
|
|
|
(9
|
)
|
|
|
2
|
|
|
|
125
|
|
|
|
654
|
|
Commercial real estate
|
|
|
3,152
|
|
|
|
|
|
|
|
1
|
|
|
|
1,024
|
|
|
|
4,177
|
|
Construction and land
|
|
|
1,360
|
|
|
|
|
|
|
|
52
|
|
|
|
351
|
|
|
|
1,763
|
|
Multi-family residential
|
|
|
173
|
|
|
|
|
|
|
|
|
|
|
|
188
|
|
|
|
361
|
|
Commercial and industrial
|
|
|
2,010
|
|
|
|
(242
|
)
|
|
|
56
|
|
|
|
1,492
|
|
|
|
3,316
|
|
Consumer
|
|
|
571
|
|
|
|
(162
|
)
|
|
|
5
|
|
|
|
99
|
|
|
|
513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
9,174
|
|
|
$
|
(413
|
)
|
|
$
|
116
|
|
|
$
|
3,343
|
|
|
$
|
12,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
92
|
|
|
$
|
(33
|
)
|
|
$
|
|
|
|
$
|
16
|
|
|
$
|
75
|
|
Home equity loans and lines
|
|
|
224
|
|
|
|
|
|
|
|
|
|
|
|
(150
|
)
|
|
|
74
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
57
|
|
|
|
|
|
|
|
|
|
|
|
(38
|
)
|
|
|
19
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
94
|
|
|
|
29
|
|
|
|
123
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
373
|
|
|
$
|
(33
|
)
|
|
$
|
94
|
|
|
$
|
(143
|
)
|
|
$
|
291
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
1,464
|
|
|
$
|
(33
|
)
|
|
$
|
|
|
|
$
|
80
|
|
|
$
|
1,511
|
|
Home equity loans and lines
|
|
|
760
|
|
|
|
(9
|
)
|
|
|
2
|
|
|
|
(25
|
)
|
|
|
728
|
|
Commercial real estate
|
|
|
3,152
|
|
|
|
|
|
|
|
1
|
|
|
|
1,024
|
|
|
|
4,177
|
|
Construction and land
|
|
|
1,417
|
|
|
|
|
|
|
|
52
|
|
|
|
313
|
|
|
|
1,782
|
|
Multi-family residential
|
|
|
173
|
|
|
|
|
|
|
|
|
|
|
|
188
|
|
|
|
361
|
|
Commercial and industrial
|
|
|
2,010
|
|
|
|
(242
|
)
|
|
|
150
|
|
|
|
1,521
|
|
|
|
3,439
|
|
Consumer
|
|
|
571
|
|
|
|
(162
|
)
|
|
|
5
|
|
|
|
99
|
|
|
|
513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
9,547
|
|
|
$
|
(446
|
)
|
|
$
|
210
|
|
|
$
|
3,200
|
|
|
$
|
12,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2015
|
|
(dollars in
thousands)
|
|
Beginning
Balance
|
|
|
Charge-offs
|
|
|
Recoveries
|
|
|
Provision
|
|
|
Ending
Balance
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
1,136
|
|
|
$
|
(62
|
)
|
|
$
|
30
|
|
|
$
|
268
|
|
|
$
|
1,372
|
|
Home equity loans and lines
|
|
|
442
|
|
|
|
(15
|
)
|
|
|
20
|
|
|
|
89
|
|
|
|
536
|
|
Commercial real estate
|
|
|
2,922
|
|
|
|
|
|
|
|
1
|
|
|
|
229
|
|
|
|
3,152
|
|
Construction and land
|
|
|
968
|
|
|
|
|
|
|
|
|
|
|
|
392
|
|
|
|
1,360
|
|
Multi-family residential
|
|
|
192
|
|
|
|
|
|
|
|
|
|
|
|
(19
|
)
|
|
|
173
|
|
Commercial and industrial
|
|
|
1,161
|
|
|
|
(190
|
)
|
|
|
226
|
|
|
|
813
|
|
|
|
2,010
|
|
Consumer
|
|
|
521
|
|
|
|
(130
|
)
|
|
|
1
|
|
|
|
179
|
|
|
|
571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
7,342
|
|
|
$
|
(397
|
)
|
|
$
|
278
|
|
|
$
|
1,951
|
|
|
$
|
9,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2015
|
|
(dollars in
thousands)
|
|
Beginning
Balance
|
|
|
Charge-offs
|
|
|
Recoveries
|
|
|
Provision
|
|
|
Ending
Balance
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
174
|
|
|
$
|
(42
|
)
|
|
$
|
|
|
|
$
|
(40
|
)
|
|
$
|
92
|
|
Home equity loans and lines
|
|
|
111
|
|
|
|
(12
|
)
|
|
|
|
|
|
|
125
|
|
|
|
224
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
133
|
|
|
|
(111
|
)
|
|
|
|
|
|
|
35
|
|
|
|
57
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
418
|
|
|
$
|
(165
|
)
|
|
$
|
|
|
|
$
|
120
|
|
|
$
|
373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
1,310
|
|
|
$
|
(104
|
)
|
|
$
|
30
|
|
|
$
|
228
|
|
|
$
|
1,464
|
|
Home equity loans and lines
|
|
|
553
|
|
|
|
(27
|
)
|
|
|
20
|
|
|
|
214
|
|
|
|
760
|
|
Commercial real estate
|
|
|
2,922
|
|
|
|
|
|
|
|
1
|
|
|
|
229
|
|
|
|
3,152
|
|
Construction and land
|
|
|
1,101
|
|
|
|
(111
|
)
|
|
|
|
|
|
|
427
|
|
|
|
1,417
|
|
Multi-family residential
|
|
|
192
|
|
|
|
|
|
|
|
|
|
|
|
(19
|
)
|
|
|
173
|
|
Commercial and industrial
|
|
|
1,161
|
|
|
|
(190
|
)
|
|
|
226
|
|
|
|
813
|
|
|
|
2,010
|
|
Consumer
|
|
|
521
|
|
|
|
(130
|
)
|
|
|
1
|
|
|
|
179
|
|
|
|
571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
7,760
|
|
|
$
|
(562
|
)
|
|
$
|
278
|
|
|
$
|
2,071
|
|
|
$
|
9,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2014
|
|
(dollars in thousands)
|
|
Beginning
Balance
|
|
|
Charge-offs
|
|
|
Recoveries
|
|
|
Provision
|
|
|
Ending
Balance
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
904
|
|
|
$
|
(99
|
)
|
|
$
|
|
|
|
$
|
331
|
|
|
$
|
1,136
|
|
Home equity loans and lines
|
|
|
366
|
|
|
|
(2
|
)
|
|
|
5
|
|
|
|
73
|
|
|
|
442
|
|
Commercial real estate
|
|
|
2,528
|
|
|
|
|
|
|
|
|
|
|
|
394
|
|
|
|
2,922
|
|
Construction and land
|
|
|
977
|
|
|
|
(19
|
)
|
|
|
|
|
|
|
10
|
|
|
|
968
|
|
Multi-family residential
|
|
|
90
|
|
|
|
|
|
|
|
|
|
|
|
102
|
|
|
|
192
|
|
Commercial and industrial
|
|
|
1,332
|
|
|
|
(1,407
|
)
|
|
|
184
|
|
|
|
1,052
|
|
|
|
1,161
|
|
Consumer
|
|
|
473
|
|
|
|
(32
|
)
|
|
|
3
|
|
|
|
77
|
|
|
|
521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
6,670
|
|
|
$
|
(1,559
|
)
|
|
$
|
192
|
|
|
$
|
2,039
|
|
|
$
|
7,342
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
184
|
|
|
$
|
(114
|
)
|
|
$
|
|
|
|
$
|
104
|
|
|
$
|
174
|
|
Home equity loans and lines
|
|
|
58
|
|
|
|
|
|
|
|
|
|
|
|
53
|
|
|
|
111
|
|
Commercial real estate
|
|
|
|
|
|
|
(41
|
)
|
|
|
|
|
|
|
41
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
133
|
|
|
|
133
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
(6
|
)
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
248
|
|
|
$
|
(155
|
)
|
|
$
|
|
|
|
$
|
325
|
|
|
$
|
418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2014
|
|
(dollars in thousands)
|
|
Beginning
Balance
|
|
|
Charge-offs
|
|
|
Recoveries
|
|
|
Provision
|
|
|
Ending
Balance
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
1,088
|
|
|
$
|
(213
|
)
|
|
$
|
|
|
|
$
|
435
|
|
|
$
|
1,310
|
|
Home equity loans and lines
|
|
|
424
|
|
|
|
(2
|
)
|
|
|
5
|
|
|
|
126
|
|
|
|
553
|
|
Commercial real estate
|
|
|
2,528
|
|
|
|
(41
|
)
|
|
|
|
|
|
|
435
|
|
|
|
2,922
|
|
Construction and land
|
|
|
977
|
|
|
|
(19
|
)
|
|
|
|
|
|
|
143
|
|
|
|
1,101
|
|
Multi-family residential
|
|
|
90
|
|
|
|
|
|
|
|
|
|
|
|
102
|
|
|
|
192
|
|
Commercial and industrial
|
|
|
1,338
|
|
|
|
(1,407
|
)
|
|
|
184
|
|
|
|
1,046
|
|
|
|
1,161
|
|
Consumer
|
|
|
473
|
|
|
|
(32
|
)
|
|
|
3
|
|
|
|
77
|
|
|
|
521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
6,918
|
|
|
$
|
(1,714
|
)
|
|
$
|
192
|
|
|
$
|
2,364
|
|
|
$
|
7,760
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Companys allowance for loan losses and recorded investment in loans as of the dates indicated is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016
|
|
|
|
Originated Loans
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Collectively
Evaluated for
Impairment
|
|
|
Individually
Evaluated for
Impairment
|
|
|
Acquired
Loans
|
|
|
Total
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
1,397
|
|
|
$
|
39
|
|
|
$
|
75
|
|
|
$
|
1,511
|
|
Home equity loans and lines
|
|
|
654
|
|
|
|
|
|
|
|
74
|
|
|
|
728
|
|
Commercial real estate
|
|
|
4,158
|
|
|
|
19
|
|
|
|
|
|
|
|
4,177
|
|
Construction and land
|
|
|
1,763
|
|
|
|
|
|
|
|
19
|
|
|
|
1,782
|
|
Multi-family residential
|
|
|
361
|
|
|
|
|
|
|
|
|
|
|
|
361
|
|
Commercial and industrial
|
|
|
2,579
|
|
|
|
737
|
|
|
|
123
|
|
|
|
3,439
|
|
Consumer
|
|
|
513
|
|
|
|
|
|
|
|
|
|
|
|
513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
11,425
|
|
|
$
|
795
|
|
|
$
|
291
|
|
|
$
|
12,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016
|
|
|
|
Originated Loans
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Collectively
Evaluated for
Impairment
|
|
|
Individually
Evaluated for
Impairment
|
|
|
Acquired
Loans
(1)
|
|
|
Total
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
176,392
|
|
|
$
|
252
|
|
|
$
|
165,239
|
|
|
$
|
341,883
|
|
Home equity loans and lines
|
|
|
47,865
|
|
|
|
|
|
|
|
40,956
|
|
|
|
88,821
|
|
Commercial real estate
|
|
|
321,361
|
|
|
|
462
|
|
|
|
105,692
|
|
|
|
427,515
|
|
Construction and land
|
|
|
138,955
|
|
|
|
|
|
|
|
2,212
|
|
|
|
141,167
|
|
Multi-family residential
|
|
|
26,941
|
|
|
|
|
|
|
|
19,428
|
|
|
|
46,369
|
|
Commercial and industrial
|
|
|
126,791
|
|
|
|
4,844
|
|
|
|
8,175
|
|
|
|
139,810
|
|
Consumer
|
|
|
40,827
|
|
|
|
|
|
|
|
1,441
|
|
|
|
42,268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
879,132
|
|
|
$
|
5,558
|
|
|
$
|
343,143
|
|
|
$
|
1,227,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2015
|
|
|
|
Originated Loans
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Collectively
Evaluated for
Impairment
|
|
|
Individually
Evaluated for
Impairment
|
|
|
Acquired
Loans
|
|
|
Total
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
1,338
|
|
|
$
|
34
|
|
|
$
|
92
|
|
|
$
|
1,464
|
|
Home equity loans and lines
|
|
|
536
|
|
|
|
|
|
|
|
224
|
|
|
|
760
|
|
Commercial real estate
|
|
|
3,066
|
|
|
|
86
|
|
|
|
|
|
|
|
3,152
|
|
Construction and land
|
|
|
1,360
|
|
|
|
|
|
|
|
57
|
|
|
|
1,417
|
|
Multi-family residential
|
|
|
173
|
|
|
|
|
|
|
|
|
|
|
|
173
|
|
Commercial and industrial
|
|
|
1,977
|
|
|
|
33
|
|
|
|
|
|
|
|
2,010
|
|
Consumer
|
|
|
571
|
|
|
|
|
|
|
|
|
|
|
|
571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total allowance for loan losses
|
|
$
|
9,021
|
|
|
$
|
153
|
|
|
$
|
373
|
|
|
$
|
9,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2015
|
|
|
|
Originated Loans
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Collectively
Evaluated for
Impairment
|
|
|
Individually
Evaluated for
Impairment
|
|
|
Acquired
Loans
(1)
|
|
|
Total
|
|
Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
165,774
|
|
|
$
|
78
|
|
|
$
|
205,386
|
|
|
$
|
371,238
|
|
Home equity loans and lines
|
|
|
40,251
|
|
|
|
|
|
|
|
53,809
|
|
|
|
94,060
|
|
Commercial real estate
|
|
|
285,856
|
|
|
|
181
|
|
|
|
119,342
|
|
|
|
405,379
|
|
Construction and land
|
|
|
129,035
|
|
|
|
|
|
|
|
7,768
|
|
|
|
136,803
|
|
Multi-family residential
|
|
|
14,962
|
|
|
|
|
|
|
|
28,901
|
|
|
|
43,863
|
|
Commercial and industrial
|
|
|
115,360
|
|
|
|
707
|
|
|
|
9,041
|
|
|
|
125,108
|
|
Consumer
|
|
|
45,641
|
|
|
|
|
|
|
|
2,274
|
|
|
|
47,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
796,879
|
|
|
$
|
966
|
|
|
$
|
426,521
|
|
|
$
|
1,224,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
$13.1 million and $20.0 million in acquired loans were accounted for under ASC
310-30
at December 31, 2016 and
2015, respectively.
|
Although the Company has a diversified loan portfolio, a substantial portion of the loan portfolio is collateralized by
improved and unimproved real estate and is dependent, in part, on values in the real estate market.
Credit quality indicators on the Companys loan
portfolio as of the dates indicated are as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
(dollars in thousands)
|
|
Pass
|
|
|
Special
Mention
|
|
|
Substandard
|
|
|
Doubtful
|
|
|
Total
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
175,045
|
|
|
$
|
276
|
|
|
$
|
1,323
|
|
|
$
|
|
|
|
$
|
176,644
|
|
Home equity loans and lines
|
|
|
46,536
|
|
|
|
331
|
|
|
|
998
|
|
|
|
|
|
|
|
47,865
|
|
Commercial real estate
|
|
|
311,517
|
|
|
|
822
|
|
|
|
9,484
|
|
|
|
|
|
|
|
321,823
|
|
Construction and land
|
|
|
138,000
|
|
|
|
22
|
|
|
|
933
|
|
|
|
|
|
|
|
138,955
|
|
Multi-family residential
|
|
|
26,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,941
|
|
Commercial and industrial
|
|
|
114,962
|
|
|
|
5,979
|
|
|
|
10,694
|
|
|
|
|
|
|
|
131,635
|
|
Consumer
|
|
|
40,369
|
|
|
|
98
|
|
|
|
360
|
|
|
|
|
|
|
|
40,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
853,370
|
|
|
$
|
7,528
|
|
|
$
|
23,792
|
|
|
$
|
|
|
|
$
|
884,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
(dollars in thousands)
|
|
Pass
|
|
|
Special
Mention
|
|
|
Substandard
|
|
|
Doubtful
|
|
|
Total
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
162,037
|
|
|
$
|
245
|
|
|
$
|
2,957
|
|
|
$
|
|
|
|
$
|
165,239
|
|
Home equity loans and lines
|
|
|
40,812
|
|
|
|
47
|
|
|
|
97
|
|
|
|
|
|
|
|
40,956
|
|
Commercial real estate
|
|
|
101,546
|
|
|
|
2,758
|
|
|
|
1,388
|
|
|
|
|
|
|
|
105,692
|
|
Construction and land
|
|
|
1,537
|
|
|
|
71
|
|
|
|
604
|
|
|
|
|
|
|
|
2,212
|
|
Multi-family residential
|
|
|
19,250
|
|
|
|
|
|
|
|
178
|
|
|
|
|
|
|
|
19,428
|
|
Commercial and industrial
|
|
|
4,843
|
|
|
|
|
|
|
|
3,332
|
|
|
|
|
|
|
|
8,175
|
|
Consumer
|
|
|
1,401
|
|
|
|
38
|
|
|
|
2
|
|
|
|
|
|
|
|
1,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired loans
|
|
$
|
331,426
|
|
|
$
|
3,159
|
|
|
$
|
8,558
|
|
|
$
|
|
|
|
$
|
343,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
337,082
|
|
|
$
|
521
|
|
|
$
|
4,280
|
|
|
$
|
|
|
|
$
|
341,883
|
|
Home equity loans and lines
|
|
|
87,348
|
|
|
|
378
|
|
|
|
1,095
|
|
|
|
|
|
|
|
88,821
|
|
Commercial real estate
|
|
|
413,063
|
|
|
|
3,580
|
|
|
|
10,872
|
|
|
|
|
|
|
|
427,515
|
|
Construction and land
|
|
|
139,537
|
|
|
|
93
|
|
|
|
1,537
|
|
|
|
|
|
|
|
141,167
|
|
Multi-family residential
|
|
|
46,191
|
|
|
|
|
|
|
|
178
|
|
|
|
|
|
|
|
46,369
|
|
Commercial and industrial
|
|
|
119,805
|
|
|
|
5,979
|
|
|
|
14,026
|
|
|
|
|
|
|
|
139,810
|
|
Consumer
|
|
|
41,770
|
|
|
|
136
|
|
|
|
362
|
|
|
|
|
|
|
|
42,268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
1,184,796
|
|
|
$
|
10,687
|
|
|
$
|
32,350
|
|
|
$
|
|
|
|
$
|
1,227,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
(dollars in thousands)
|
|
Pass
|
|
|
Special
Mention
|
|
|
Substandard
|
|
|
Doubtful
|
|
|
Total
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
163,835
|
|
|
$
|
439
|
|
|
$
|
1,578
|
|
|
$
|
|
|
|
$
|
165,852
|
|
Home equity loans and lines
|
|
|
39,736
|
|
|
|
394
|
|
|
|
121
|
|
|
|
|
|
|
|
40,251
|
|
Commercial real estate
|
|
|
282,963
|
|
|
|
988
|
|
|
|
2,086
|
|
|
|
|
|
|
|
286,037
|
|
Construction and land
|
|
|
127,929
|
|
|
|
|
|
|
|
1,106
|
|
|
|
|
|
|
|
129,035
|
|
Multi-family residential
|
|
|
14,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,962
|
|
Commercial and industrial
|
|
|
113,108
|
|
|
|
585
|
|
|
|
2,374
|
|
|
|
|
|
|
|
116,067
|
|
Consumer
|
|
|
45,133
|
|
|
|
38
|
|
|
|
470
|
|
|
|
|
|
|
|
45,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
787,666
|
|
|
$
|
2,444
|
|
|
$
|
7,735
|
|
|
$
|
|
|
|
$
|
797,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
200,966
|
|
|
$
|
791
|
|
|
$
|
3,629
|
|
|
$
|
|
|
|
$
|
205,386
|
|
Home equity loans and lines
|
|
|
53,352
|
|
|
|
20
|
|
|
|
437
|
|
|
|
|
|
|
|
53,809
|
|
Commercial real estate
|
|
|
112,802
|
|
|
|
4,085
|
|
|
|
2,455
|
|
|
|
|
|
|
|
119,342
|
|
Construction and land
|
|
|
4,573
|
|
|
|
1,819
|
|
|
|
1,376
|
|
|
|
|
|
|
|
7,768
|
|
Multi-family residential
|
|
|
27,931
|
|
|
|
12
|
|
|
|
958
|
|
|
|
|
|
|
|
28,901
|
|
Commercial and industrial
|
|
|
7,071
|
|
|
|
1,191
|
|
|
|
779
|
|
|
|
|
|
|
|
9,041
|
|
Consumer
|
|
|
2,160
|
|
|
|
51
|
|
|
|
63
|
|
|
|
|
|
|
|
2,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired loans
|
|
$
|
408,855
|
|
|
$
|
7,969
|
|
|
$
|
9,697
|
|
|
$
|
|
|
|
$
|
426,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
(dollars in thousands)
|
|
Pass
|
|
|
Special
Mention
|
|
|
Substandard
|
|
|
Doubtful
|
|
|
Total
|
|
Total:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
364,801
|
|
|
$
|
1,230
|
|
|
$
|
5,207
|
|
|
$
|
|
|
|
$
|
371,238
|
|
Home equity loans and lines
|
|
|
93,088
|
|
|
|
414
|
|
|
|
558
|
|
|
|
|
|
|
|
94,060
|
|
Commercial real estate
|
|
|
395,765
|
|
|
|
5,073
|
|
|
|
4,541
|
|
|
|
|
|
|
|
405,379
|
|
Construction and land
|
|
|
132,502
|
|
|
|
1,819
|
|
|
|
2,482
|
|
|
|
|
|
|
|
136,803
|
|
Multi-family residential
|
|
|
42,893
|
|
|
|
12
|
|
|
|
958
|
|
|
|
|
|
|
|
43,863
|
|
Commercial and industrial
|
|
|
120,179
|
|
|
|
1,776
|
|
|
|
3,153
|
|
|
|
|
|
|
|
125,108
|
|
Consumer
|
|
|
47,293
|
|
|
|
89
|
|
|
|
533
|
|
|
|
|
|
|
|
47,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
1,196,521
|
|
|
$
|
10,413
|
|
|
$
|
17,432
|
|
|
$
|
|
|
|
$
|
1,224,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The above classifications follow regulatory guidelines and can generally be described as follows:
|
|
|
Pass loans are of satisfactory quality.
|
|
|
|
Special mention loans have an existing weakness that could cause future impairment, including the deterioration of financial ratios, past due status, questionable management capabilities and possible reduction in the
collateral values.
|
|
|
|
Substandard loans have an existing specific and well defined weakness that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts.
Immediate corrective action is necessary.
|
|
|
|
Doubtful loans have specific weaknesses that are severe enough to make collection or liquidation in full highly questionable and improbable.
|
In addition, residential loans are classified using an inter-regulatory agency methodology that incorporates, among other factors, the extent of delinquencies
and
loan-to-value
ratios. These classifications were the most current available as of December 31, 2016 and 2015, respectively, and were generally updated within
the prior three months.
Age analysis of past due loans, as of the dates indicated is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
(dollars in thousands)
|
|
30-59
Days
Past Due
|
|
|
60-89
Days
Past Due
|
|
|
Greater
Than 90
Days
Past Due
|
|
|
Total
Past Due
|
|
|
Current
Loans
|
|
|
Total
Loans
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
651
|
|
|
$
|
|
|
|
$
|
563
|
|
|
$
|
1,214
|
|
|
$
|
175,430
|
|
|
$
|
176,644
|
|
Home equity loans and lines
|
|
|
37
|
|
|
|
29
|
|
|
|
|
|
|
|
66
|
|
|
|
47,799
|
|
|
|
47,865
|
|
Commercial real estate
|
|
|
475
|
|
|
|
|
|
|
|
587
|
|
|
|
1,062
|
|
|
|
320,761
|
|
|
|
321,823
|
|
Construction and land
|
|
|
467
|
|
|
|
|
|
|
|
12
|
|
|
|
479
|
|
|
|
138,476
|
|
|
|
138,955
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,941
|
|
|
|
26,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
1,630
|
|
|
|
29
|
|
|
|
1,162
|
|
|
|
2,821
|
|
|
|
709,407
|
|
|
|
712,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
656
|
|
|
|
706
|
|
|
|
650
|
|
|
|
2,012
|
|
|
|
129,623
|
|
|
|
131,635
|
|
Consumer
|
|
|
531
|
|
|
|
97
|
|
|
|
192
|
|
|
|
820
|
|
|
|
40,007
|
|
|
|
40,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
1,187
|
|
|
|
803
|
|
|
|
842
|
|
|
|
2,832
|
|
|
|
169,630
|
|
|
|
172,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
2,817
|
|
|
$
|
832
|
|
|
$
|
2,004
|
|
|
$
|
5,653
|
|
|
$
|
879,037
|
|
|
$
|
884,690
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
(dollars in thousands)
|
|
30-59
Days
Past Due
|
|
|
60-89
Days
Past Due
|
|
|
Greater
Than 90
Days
Past Due
|
|
|
Total
Past Due
|
|
|
Current
Loans
|
|
|
Total
Loans
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
1,471
|
|
|
$
|
969
|
|
|
$
|
2,025
|
|
|
$
|
4,465
|
|
|
$
|
160,774
|
|
|
$
|
165,239
|
|
Home equity loans and lines
|
|
|
136
|
|
|
|
27
|
|
|
|
38
|
|
|
|
201
|
|
|
|
40,755
|
|
|
|
40,956
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
1,164
|
|
|
|
1,164
|
|
|
|
104,528
|
|
|
|
105,692
|
|
Construction and land
|
|
|
21
|
|
|
|
|
|
|
|
30
|
|
|
|
51
|
|
|
|
2,161
|
|
|
|
2,212
|
|
Multi-family residential
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
19
|
|
|
|
19,409
|
|
|
|
19,428
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
1,647
|
|
|
|
996
|
|
|
|
3,257
|
|
|
|
5,900
|
|
|
|
327,627
|
|
|
|
333,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,175
|
|
|
|
8,175
|
|
Consumer
|
|
|
2
|
|
|
|
8
|
|
|
|
2
|
|
|
|
12
|
|
|
|
1,429
|
|
|
|
1,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
2
|
|
|
|
8
|
|
|
|
2
|
|
|
|
12
|
|
|
|
9,604
|
|
|
|
9,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired loans
|
|
$
|
1,649
|
|
|
$
|
1,004
|
|
|
$
|
3,259
|
|
|
$
|
5,912
|
|
|
$
|
337,231
|
|
|
$
|
343,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
2,122
|
|
|
$
|
969
|
|
|
$
|
2,588
|
|
|
$
|
5,679
|
|
|
$
|
336,204
|
|
|
$
|
341,883
|
|
Home equity loans and lines
|
|
|
173
|
|
|
|
56
|
|
|
|
38
|
|
|
|
267
|
|
|
|
88,554
|
|
|
|
88,821
|
|
Commercial real estate
|
|
|
475
|
|
|
|
|
|
|
|
1,751
|
|
|
|
2,226
|
|
|
|
425,289
|
|
|
|
427,515
|
|
Construction and land
|
|
|
488
|
|
|
|
|
|
|
|
42
|
|
|
|
530
|
|
|
|
140,637
|
|
|
|
141,167
|
|
Multi-family residential
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
19
|
|
|
|
46,350
|
|
|
|
46,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
3,277
|
|
|
|
1,025
|
|
|
|
4,419
|
|
|
|
8,721
|
|
|
|
1,037,034
|
|
|
|
1,045,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
656
|
|
|
|
706
|
|
|
|
650
|
|
|
|
2,012
|
|
|
|
137,798
|
|
|
|
139,810
|
|
Consumer
|
|
|
533
|
|
|
|
105
|
|
|
|
194
|
|
|
|
832
|
|
|
|
41,436
|
|
|
|
42,268
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
1,189
|
|
|
|
811
|
|
|
|
844
|
|
|
|
2,844
|
|
|
|
179,234
|
|
|
|
182,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
4,466
|
|
|
$
|
1,836
|
|
|
$
|
5,263
|
|
|
$
|
11,565
|
|
|
$
|
1,216,268
|
|
|
$
|
1,227,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
(dollars in thousands)
|
|
30-59
Days
Past Due
|
|
|
60-89
Days
Past Due
|
|
|
Greater
Than 90
Days
Past Due
|
|
|
Total
Past Due
|
|
|
Current
Loans
|
|
|
Total
Loans
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
1,059
|
|
|
$
|
435
|
|
|
$
|
890
|
|
|
$
|
2,384
|
|
|
$
|
163,468
|
|
|
$
|
165,852
|
|
Home equity loans and lines
|
|
|
87
|
|
|
|
|
|
|
|
121
|
|
|
|
208
|
|
|
|
40,043
|
|
|
|
40,251
|
|
Commercial real estate
|
|
|
438
|
|
|
|
|
|
|
|
602
|
|
|
|
1,040
|
|
|
|
284,997
|
|
|
|
286,037
|
|
Construction and land
|
|
|
1,232
|
|
|
|
|
|
|
|
87
|
|
|
|
1,319
|
|
|
|
127,716
|
|
|
|
129,035
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14,962
|
|
|
|
14,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
2,816
|
|
|
|
435
|
|
|
|
1,700
|
|
|
|
4,951
|
|
|
|
631,186
|
|
|
|
636,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
411
|
|
|
|
15
|
|
|
|
707
|
|
|
|
1,133
|
|
|
|
114,934
|
|
|
|
116,067
|
|
Consumer
|
|
|
533
|
|
|
|
277
|
|
|
|
358
|
|
|
|
1,168
|
|
|
|
44,473
|
|
|
|
45,641
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
944
|
|
|
|
292
|
|
|
|
1,065
|
|
|
|
2,301
|
|
|
|
159,407
|
|
|
|
161,708
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total originated loans
|
|
$
|
3,760
|
|
|
$
|
727
|
|
|
$
|
2,765
|
|
|
$
|
7,252
|
|
|
$
|
790,593
|
|
|
$
|
797,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2015
|
|
(dollars in thousands)
|
|
30-59
Days
Past Due
|
|
|
60-89
Days
Past Due
|
|
|
Greater
Than 90
Days
Past Due
|
|
|
Total
Past Due
|
|
|
Current
Loans
|
|
|
Total
Loans
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
1,976
|
|
|
$
|
885
|
|
|
$
|
2,582
|
|
|
$
|
5,443
|
|
|
$
|
199,943
|
|
|
$
|
205,386
|
|
Home equity loans and lines
|
|
|
327
|
|
|
|
40
|
|
|
|
317
|
|
|
|
684
|
|
|
|
53,125
|
|
|
|
53,809
|
|
Commercial real estate
|
|
|
140
|
|
|
|
6
|
|
|
|
1,441
|
|
|
|
1,587
|
|
|
|
117,755
|
|
|
|
119,342
|
|
Construction and land
|
|
|
592
|
|
|
|
7
|
|
|
|
48
|
|
|
|
647
|
|
|
|
7,121
|
|
|
|
7,768
|
|
Multi-family residential
|
|
|
|
|
|
|
14
|
|
|
|
12
|
|
|
|
26
|
|
|
|
28,875
|
|
|
|
28,901
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
3,035
|
|
|
|
952
|
|
|
|
4,400
|
|
|
|
8,387
|
|
|
|
406,819
|
|
|
|
415,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
14
|
|
|
|
7
|
|
|
|
429
|
|
|
|
450
|
|
|
|
8,591
|
|
|
|
9,041
|
|
Consumer
|
|
|
64
|
|
|
|
4
|
|
|
|
48
|
|
|
|
116
|
|
|
|
2,158
|
|
|
|
2,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
78
|
|
|
|
11
|
|
|
|
477
|
|
|
|
566
|
|
|
|
10,749
|
|
|
|
11,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired loans
|
|
$
|
3,113
|
|
|
$
|
963
|
|
|
$
|
4,877
|
|
|
$
|
8,953
|
|
|
$
|
417,568
|
|
|
$
|
426,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
3,035
|
|
|
$
|
1,320
|
|
|
$
|
3,472
|
|
|
$
|
7,827
|
|
|
$
|
363,411
|
|
|
$
|
371,238
|
|
Home equity loans and lines
|
|
|
414
|
|
|
|
40
|
|
|
|
438
|
|
|
|
892
|
|
|
|
93,168
|
|
|
|
94,060
|
|
Commercial real estate
|
|
|
578
|
|
|
|
6
|
|
|
|
2,043
|
|
|
|
2,627
|
|
|
|
402,752
|
|
|
|
405,379
|
|
Construction and land
|
|
|
1,824
|
|
|
|
7
|
|
|
|
135
|
|
|
|
1,966
|
|
|
|
134,837
|
|
|
|
136,803
|
|
Multi-family residential
|
|
|
|
|
|
|
14
|
|
|
|
12
|
|
|
|
26
|
|
|
|
43,837
|
|
|
|
43,863
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
5,851
|
|
|
|
1,387
|
|
|
|
6,100
|
|
|
|
13,338
|
|
|
|
1,038,005
|
|
|
|
1,051,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
425
|
|
|
|
22
|
|
|
|
1,136
|
|
|
|
1,583
|
|
|
|
123,525
|
|
|
|
125,108
|
|
Consumer
|
|
|
597
|
|
|
|
281
|
|
|
|
406
|
|
|
|
1,284
|
|
|
|
46,631
|
|
|
|
47,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
1,022
|
|
|
|
303
|
|
|
|
1,542
|
|
|
|
2,867
|
|
|
|
170,156
|
|
|
|
173,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
6,873
|
|
|
$
|
1,690
|
|
|
$
|
7,642
|
|
|
$
|
16,205
|
|
|
$
|
1,208,161
|
|
|
$
|
1,224,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016 and 2015, the Company did not have any loans greater than 90 days past due which were accruing
interest.
An impaired loan generally is one for which it is probable, based on current information, that the lender will not collect all the amounts due
under the contractual terms of the loan. The Company evaluates loans for impairment on an individual basis when it believes that there is a potential for loss. When a determination is made that a loan has deteriorated to the point of becoming a
problem loan, updated valuations may be ordered to help determine if there is impairment, which may lead to a recommendation for partial charge off or appropriate allowance allocation. The following is a summary of information pertaining to the
Companys impaired loans, excluding acquired loans, as of the dates indicated.
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2016
|
|
(dollars in thousands)
|
|
Recorded
Investment
|
|
|
Unpaid
Principal
Balance
|
|
|
Related
Allowance
|
|
|
Average
Recorded
Investment
|
|
|
Interest
Income
Recognized
|
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
3,144
|
|
|
|
3,178
|
|
|
|
|
|
|
|
262
|
|
|
|
166
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
3,144
|
|
|
$
|
3,178
|
|
|
$
|
|
|
|
$
|
262
|
|
|
$
|
166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
252
|
|
|
$
|
260
|
|
|
$
|
39
|
|
|
$
|
93
|
|
|
$
|
13
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
462
|
|
|
|
483
|
|
|
|
19
|
|
|
|
423
|
|
|
|
14
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
1,700
|
|
|
|
1,737
|
|
|
|
737
|
|
|
|
1,635
|
|
|
|
87
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
2,414
|
|
|
$
|
2,480
|
|
|
$
|
795
|
|
|
$
|
2,151
|
|
|
$
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
252
|
|
|
$
|
260
|
|
|
$
|
39
|
|
|
$
|
93
|
|
|
$
|
13
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
462
|
|
|
|
483
|
|
|
|
19
|
|
|
|
423
|
|
|
|
14
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
4,844
|
|
|
|
4,914
|
|
|
|
737
|
|
|
|
1,897
|
|
|
|
253
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
5,558
|
|
|
$
|
5,658
|
|
|
$
|
795
|
|
|
$
|
2,413
|
|
|
$
|
280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2015
|
|
(dollars in thousands)
|
|
Recorded
Investment
|
|
|
Unpaid
Principal
Balance
|
|
|
Related
Allowance
|
|
|
Average
Recorded
Investment
|
|
|
Interest
Income
Recognized
|
|
With no related allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
72
|
|
|
$
|
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
213
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
285
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With an allowance recorded:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
78
|
|
|
$
|
78
|
|
|
$
|
34
|
|
|
$
|
6
|
|
|
$
|
5
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
181
|
|
|
|
181
|
|
|
|
86
|
|
|
|
461
|
|
|
|
11
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
707
|
|
|
|
707
|
|
|
|
33
|
|
|
|
729
|
|
|
|
39
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
966
|
|
|
$
|
966
|
|
|
$
|
153
|
|
|
$
|
1,196
|
|
|
$
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
66
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended December 31, 2015
|
|
(dollars in thousands)
|
|
Recorded
Investment
|
|
|
Unpaid
Principal
Balance
|
|
|
Related
Allowance
|
|
|
Average
Recorded
Investment
|
|
|
Interest
Income
Recognized
|
|
Total impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
78
|
|
|
$
|
78
|
|
|
$
|
34
|
|
|
$
|
78
|
|
|
$
|
5
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
181
|
|
|
|
181
|
|
|
|
86
|
|
|
|
461
|
|
|
|
11
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
707
|
|
|
|
707
|
|
|
|
33
|
|
|
|
942
|
|
|
|
39
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
966
|
|
|
$
|
966
|
|
|
$
|
153
|
|
|
$
|
1,481
|
|
|
$
|
55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company reviews its significant nonaccrual loans for specific impairment in accordance with its allowance for loan loss
methodology. If it is determined that losses are probable when other credit quality indicators are considered, the loan is considered impaired and the Company specifically allocates a portion of the allowance for loan losses to these loans. A
summary of information pertaining to the Companys nonaccrual loans as of December 31, 2016 and 2015 is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
(dollars in thousands)
|
|
Originated
|
|
|
Acquired
(1)
|
|
|
Total
|
|
|
Originated
|
|
|
Acquired
(1)
|
|
|
Total
|
|
Nonaccrual loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
891
|
|
|
$
|
833
|
|
|
$
|
1,724
|
|
|
$
|
928
|
|
|
$
|
530
|
|
|
$
|
1,458
|
|
Home equity loans and lines
|
|
|
998
|
|
|
|
90
|
|
|
|
1,088
|
|
|
|
121
|
|
|
|
139
|
|
|
|
260
|
|
Commercial real estate
|
|
|
1,799
|
|
|
|
164
|
|
|
|
1,963
|
|
|
|
1,671
|
|
|
|
1,014
|
|
|
|
2,685
|
|
Construction and land
|
|
|
12
|
|
|
|
63
|
|
|
|
75
|
|
|
|
87
|
|
|
|
68
|
|
|
|
155
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
763
|
|
|
|
763
|
|
Commercial and industrial
|
|
|
8,230
|
|
|
|
312
|
|
|
|
8,542
|
|
|
|
2,374
|
|
|
|
84
|
|
|
|
2,458
|
|
Consumer
|
|
|
360
|
|
|
|
1
|
|
|
|
361
|
|
|
|
470
|
|
|
|
6
|
|
|
|
476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
12,290
|
|
|
$
|
1,463
|
|
|
$
|
13,753
|
|
|
$
|
5,651
|
|
|
$
|
2,604
|
|
|
$
|
8,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Table excludes acquired loans which were being accounted for under ASC
310-30
because they continue to earn interest from
accretable yield regardless of their status as past due or otherwise not in compliance with their contractual terms. Acquired loans with deteriorated credit quality, which were being accounting for under ASC
310-30
and which were 90 days or more past due totaled $2.7 million and $4.0 million as of December 31, 2015 and 2014, respectively.
|
As of December 31, 2015, the Company was not committed to lend additional funds to any customer whose loan was classified as impaired.
As of December 31, 2016 and 2015, the Company had accrued interest receivable for loans of $3,897,000 and $3,940,000, respectively.
Troubled Debt Restructurings
During the course of
its lending operations, the Company periodically grants concessions to its customers in an attempt to protect as much of its investment as possible and to minimize risk of loss. These concessions may include restructuring the terms of a customer
loan to alleviate the burden of the customers near-term cash requirements. The Company must conclude that the restructuring of a loan to a
67
borrower who is experiencing financial difficulties constitutes a concession. The Company defines a concession as a modification of existing terms granted to a borrower for economic
or legal reasons related to the borrowers financial difficulties that the Company would otherwise not consider. The concession is either granted through an agreement with the customer or is imposed by a court or by a law. Concessions include
modifying original loan terms to reduce or defer cash payments required as part of the loan agreement, including but not limited to:
|
|
|
a reduction of the stated interest rate for the remaining original life of the debt,
|
|
|
|
an extension of the maturity date or dates at an interest rate lower than the current market rate for new debt with similar risk characteristics,
|
|
|
|
a reduction of the face amount or maturity amount of the debt, or
|
|
|
|
a reduction of accrued interest receivable on the debt.
|
In its determination of whether the customer is
experiencing financial difficulties, the Company considers numerous indicators, including, but not limited to:
|
|
|
whether the customer is currently in default on its existing loan, or is in an economic position where it is probable the customer will be in default on its loan in the foreseeable future without a modification,
|
|
|
|
whether the customer has declared or is in the process of declaring bankruptcy,
|
|
|
|
whether there is substantial doubt about the customers ability to continue as a going concern,
|
|
|
|
whether, based on its projections of the customers current capabilities, the Company believes the customers future cash flows will be insufficient to service the debt, including interest, in accordance with
the contractual terms of the existing agreement for the foreseeable future, and
|
|
|
|
whether, without modification, the customer cannot obtain sufficient funds from other sources at an effective interest rate equal to the current market rate for similar debt for a
non-troubled
debtor.
|
If the Company concludes that both a concession has been granted and the
concession was granted to a customer experiencing financial difficulties, the Company identifies the loan as a TDR. For purposes of the determination of an allowance for loan losses on TDRs, such loans are reviewed for specific impairment in
accordance with the Companys allowance for loan loss methodology. If it is determined that losses are probable on such TDRs, either because of delinquency or other credit quality indicators, the Company specifically allocates a portion of the
allowance for loan losses to these loans.
Information about the Companys TDRs is presented in the following tables.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016
|
|
(dollars in thousands)
|
|
Current
|
|
|
Past Due
Greater Than
30 Days
|
|
|
Nonaccrual
TDRs
|
|
|
Total
TDRs
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
276
|
|
|
$
|
|
|
|
$
|
327
|
|
|
$
|
603
|
|
Home equity loans and lines
|
|
|
331
|
|
|
|
|
|
|
|
988
|
|
|
|
1,319
|
|
Commercial real estate
|
|
|
102
|
|
|
|
|
|
|
|
1,717
|
|
|
|
1,819
|
|
Construction and land
|
|
|
562
|
|
|
|
|
|
|
|
|
|
|
|
562
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
1,271
|
|
|
|
|
|
|
|
3,032
|
|
|
|
4,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
6,775
|
|
|
|
6,775
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
168
|
|
|
|
168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
|
|
|
|
|
|
|
|
6,943
|
|
|
|
6,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
1,271
|
|
|
$
|
|
|
|
$
|
9,975
|
|
|
$
|
11,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016
|
|
(dollars in thousands)
|
|
Current
|
|
|
Past Due
Greater Than
30 Days
|
|
|
Nonaccrual
TDRs
|
|
|
Total
TDRs
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
292
|
|
|
$
|
86
|
|
|
$
|
60
|
|
|
$
|
438
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
62
|
|
|
|
62
|
|
Commercial real estate
|
|
|
288
|
|
|
|
860
|
|
|
|
|
|
|
|
1,148
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
580
|
|
|
|
946
|
|
|
|
122
|
|
|
|
1,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
1,853
|
|
|
|
|
|
|
|
313
|
|
|
|
2,166
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
1,853
|
|
|
|
|
|
|
|
313
|
|
|
|
2,166
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
2,433
|
|
|
$
|
946
|
|
|
$
|
435
|
|
|
$
|
3,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
568
|
|
|
$
|
86
|
|
|
$
|
387
|
|
|
$
|
1,041
|
|
Home equity loans and lines
|
|
|
331
|
|
|
|
|
|
|
|
1,050
|
|
|
|
1,381
|
|
Commercial real estate
|
|
|
390
|
|
|
|
860
|
|
|
|
1,717
|
|
|
|
2,967
|
|
Construction and land
|
|
|
562
|
|
|
|
|
|
|
|
|
|
|
|
562
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
1,851
|
|
|
|
946
|
|
|
|
3,154
|
|
|
|
5,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
1,853
|
|
|
|
|
|
|
|
7,088
|
|
|
|
8,941
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
168
|
|
|
|
168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
1,853
|
|
|
|
|
|
|
|
7,256
|
|
|
|
9,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
3,704
|
|
|
$
|
946
|
|
|
$
|
10,410
|
|
|
$
|
15,060
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2015
|
|
(dollars in thousands)
|
|
Current
|
|
|
Past Due
Greater Than
30 Days
|
|
|
Nonaccrual
TDRs
|
|
|
Total
TDRs
|
|
Originated loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
281
|
|
|
$
|
|
|
|
$
|
38
|
|
|
$
|
319
|
|
Home equity loans and lines
|
|
|
383
|
|
|
|
|
|
|
|
3
|
|
|
|
386
|
|
Commercial real estate
|
|
|
107
|
|
|
|
|
|
|
|
1,069
|
|
|
|
1,176
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
87
|
|
|
|
87
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
771
|
|
|
|
|
|
|
|
1,197
|
|
|
|
1,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
2,374
|
|
|
|
2,374
|
|
Consumer
|
|
|
27
|
|
|
|
|
|
|
|
142
|
|
|
|
169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
27
|
|
|
|
|
|
|
|
2,516
|
|
|
|
2,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
798
|
|
|
$
|
|
|
|
$
|
3,713
|
|
|
$
|
4,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2015
|
|
(dollars in thousands)
|
|
Current
|
|
|
Past Due
Greater Than
30 Days
|
|
|
Nonaccrual
TDRs
|
|
|
Total
TDRs
|
|
Acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
419
|
|
|
$
|
73
|
|
|
$
|
15
|
|
|
$
|
507
|
|
Home equity loans and lines
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
|
|
|
|
|
|
|
|
|
|
|
1,192
|
|
|
|
1,192
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
52
|
|
|
|
52
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
419
|
|
|
|
73
|
|
|
|
1,259
|
|
|
|
1,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
419
|
|
|
$
|
73
|
|
|
$
|
1,259
|
|
|
$
|
1,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
$
|
700
|
|
|
$
|
73
|
|
|
$
|
53
|
|
|
$
|
826
|
|
Home equity loans and lines
|
|
|
383
|
|
|
|
|
|
|
|
3
|
|
|
|
386
|
|
Commercial real estate
|
|
|
107
|
|
|
|
|
|
|
|
2,261
|
|
|
|
2,368
|
|
Construction and land
|
|
|
|
|
|
|
|
|
|
|
139
|
|
|
|
139
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total real estate loans
|
|
|
1,190
|
|
|
|
73
|
|
|
|
2,456
|
|
|
|
3,719
|
|
Other loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
|
|
|
|
|
|
|
|
2,374
|
|
|
|
2,374
|
|
Consumer
|
|
|
27
|
|
|
|
|
|
|
|
142
|
|
|
|
169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other loans
|
|
|
27
|
|
|
|
|
|
|
|
2,516
|
|
|
|
2,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans
|
|
$
|
1,217
|
|
|
$
|
73
|
|
|
$
|
4,972
|
|
|
$
|
6,262
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A summary of information pertaining to loans modified as of the periods indicated is as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Years Ended
|
|
|
|
2016
|
|
|
2015
|
|
(dollars in thousands)
|
|
Number of
Contracts
|
|
|
Pre-
modification
Outstanding
Recorded
Investment
|
|
|
Post-
modification
Outstanding
Recorded
Investment
|
|
|
Number of
Contracts
|
|
|
Pre-
modification
Outstanding
Recorded
Investment
|
|
|
Post-
modification
Outstanding
Recorded
Investment
|
|
Troubled debt restructurings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-
to four-family first mortgage
|
|
|
8
|
|
|
$
|
1,113
|
|
|
$
|
656
|
|
|
|
1
|
|
|
$
|
39
|
|
|
$
|
38
|
|
Home equity loans and lines
|
|
|
7
|
|
|
|
1,062
|
|
|
|
1,049
|
|
|
|
2
|
|
|
|
386
|
|
|
|
385
|
|
Commercial real estate
|
|
|
4
|
|
|
|
924
|
|
|
|
856
|
|
|
|
4
|
|
|
|
1,464
|
|
|
|
1,385
|
|
Construction and land
|
|
|
2
|
|
|
|
702
|
|
|
|
562
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Multi-family residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial
|
|
|
20
|
|
|
|
8,512
|
|
|
|
8,154
|
|
|
|
14
|
|
|
|
1,684
|
|
|
|
1,668
|
|
Other consumer
|
|
|
1
|
|
|
|
50
|
|
|
|
36
|
|
|
|
4
|
|
|
|
185
|
|
|
|
169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
42
|
|
|
$
|
12,363
|
|
|
$
|
11,313
|
|
|
|
25
|
|
|
$
|
3,758
|
|
|
$
|
3,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70
None of the performing troubled debt restructurings as of December 31, 2016 had defaulted subsequent to the
restructuring through the date the financial statements were available to be issued.
6. Loan Servicing
Mortgage loans sold to and serviced for others are not included in the accompanying statements of financial condition. The unpaid principal balances of these
loans as of December 31 of the years indicated are summarized as follows:
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Mortgage loans sold to Federal Home Loan Mortgage Corporation without recourse
|
|
$
|
6,772
|
|
|
$
|
7,710
|
|
Mortgage loans sold to Federal National Mortgage Association without recourse
|
|
|
180,596
|
|
|
|
217,869
|
|
Mortgage loans sold to Federal Home Loan Bank without recourse
|
|
|
735
|
|
|
|
800
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
188,103
|
|
|
$
|
226,379
|
|
|
|
|
|
|
|
|
|
|
The Company records servicing assets related to mortgage loans sold and serviced at fair value and will amortize these
servicing assets over the period of estimated net servicing income associated with each loan. Management assesses servicing assets for potential impairment annually. Activity related to servicing assets for the years ended December 31, 2016,
2015 and 2014 is summarized as follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Balance at the beginning of the year
|
|
$
|
876
|
|
|
$
|
356
|
|
|
$
|
516
|
|
Recognition of servicing assets from the transfer of financial assets
|
|
|
|
|
|
|
18
|
|
|
|
|
|
Acquired from LABC, at fair value
|
|
|
|
|
|
|
682
|
|
|
|
|
|
Amortization
|
|
|
(254
|
)
|
|
|
(180
|
)
|
|
|
(160
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
$
|
622
|
|
|
$
|
876
|
|
|
$
|
356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value, end of period
|
|
$
|
1,050
|
|
|
$
|
1,561
|
|
|
$
|
629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Custodial and escrow account balances maintained in connection with the foregoing loan servicing arrangements were $1,620,000
and $1,336,000 as of December 31, 2016 and 2015, respectively.
7. Office Properties and Equipment
Office properties and equipment consisted of the following as of December 31 of the years indicated.
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Land
|
|
$
|
12,662
|
|
|
$
|
14,049
|
|
Buildings and improvements
|
|
|
31,491
|
|
|
|
31,084
|
|
Furniture and equipment
|
|
|
9,864
|
|
|
|
10,917
|
|
|
|
|
|
|
|
|
|
|
Total office properties and equipment
|
|
|
54,017
|
|
|
|
56,050
|
|
Less accumulated depreciation
|
|
|
14,450
|
|
|
|
15,234
|
|
|
|
|
|
|
|
|
|
|
Total office properties and equipment, net
|
|
$
|
39,567
|
|
|
$
|
40,816
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense for the years ended December 31, 2016, 2015 and 2014 was $1,795,000, $1,807,000 and $1,738,000,
respectively.
71
8. Goodwill and Intangibles
The carrying amount of the Companys goodwill was $9,353,000 and $11,095,000 as of December 31, 2016 and 2015, respectively.
A summary of the Companys core deposit intangible assets as of December 31 of the years indicated follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Gross carrying amount
|
|
$
|
4,209
|
|
|
$
|
3,367
|
|
|
$
|
1,053
|
|
Core deposit intangibles acquired during the year
|
|
|
|
|
|
|
1,586
|
|
|
|
3,030
|
|
Less amortization
|
|
|
(800
|
)
|
|
|
(744
|
)
|
|
|
(716
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total core deposit intangible asset
|
|
$
|
3,409
|
|
|
$
|
4,209
|
|
|
$
|
3,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization expense on the Companys core deposit intangible assets for the years ended December 31, 2016, 2015 and
2014 was $800,000, $744,000 and $716,000, respectively.
The carrying amount of the Companys mortgage servicing asset as of December 31, 2016,
2015 and 2014 was $622,000, $876,000 and $356,000, respectively.
9. Deposits
The Companys deposits consisted of the following major classifications as of December 31 of the years indicated.
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Demand deposit accounts
|
|
$
|
296,519
|
|
|
$
|
296,617
|
|
Savings
|
|
|
109,414
|
|
|
|
109,393
|
|
Money market accounts
|
|
|
264,784
|
|
|
|
293,637
|
|
NOW accounts
|
|
|
305,092
|
|
|
|
267,707
|
|
Certificates of deposit
|
|
|
272,263
|
|
|
|
276,863
|
|
|
|
|
|
|
|
|
|
|
Total deposits
|
|
$
|
1,248,072
|
|
|
$
|
1,244,217
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2016, the scheduled maturities of the Companys certificates of deposit are as follows.
|
|
|
|
|
(dollars in thousands)
|
|
Amount
|
|
2017
|
|
$
|
151,474
|
|
2018
|
|
|
78,337
|
|
2019
|
|
|
17,779
|
|
2020
|
|
|
8,777
|
|
2021
|
|
|
12,435
|
|
Thereafter
|
|
|
3,461
|
|
|
|
|
|
|
Total certificates of deposit
|
|
$
|
272,263
|
|
|
|
|
|
|
As of December 31, 2016 and 2015, the aggregate amount of certificates of deposit with balances of $250,000 or more was
$33,740,000 and $27,272,000, respectively.
10. Short-term FHLB Advances
As of December 31, 2016, the Companys short-term FHLB advances totaled $40,000,000, compared to $39,939,000 as of December 31, 2015. For the
years ended December 31, 2016 and 2015, the average volume of short-term FHLB advances carried by the Company was $44,184,000 and $22,177,000, respectively.
72
Collateral for short and long-term FHLB advances is secured through a blanket lien evidenced by the Banks
pledge of first mortgage collateral, demand deposit accounts, capital stock and certain other assets pursuant to the Advances, Collateral Pledge and Security Agreement. Under this collateral pledge agreement, the Bank must meet all
statutory and regulatory capital standards and must meet all FHLB credit underwriting standards. Management believes that the Bank was in compliance with all such requirements as of December 31, 2016 and 2015.
As of December 31, 2016 and 2015, the Bank had $494,894,000 and $480,654,000, respectively, of additional FHLB advances available. As of
December 31, 2016, the Company had $544,470,000 of loans pledged through the Banks blanket lien.
11. Long-term FHLB Advances
As of December 31, 2016 and 2015, the Companys long-term FHLB advances totaled $78,533,000 and $85,213,000, respectively. The following table
summarizes long-term advances as of December 31, 2016.
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Amount
|
|
|
Weighted
Average Rate
|
|
Fixed rate advances maturing in:
|
|
|
|
|
|
|
|
|
2017
|
|
$
|
22,788
|
|
|
|
1.88
|
%
|
2018
|
|
|
6,000
|
|
|
|
1.32
|
|
2019
|
|
|
12,563
|
|
|
|
1.64
|
|
2020
|
|
|
31,830
|
|
|
|
1.70
|
|
2021
|
|
|
848
|
|
|
|
1.54
|
|
Thereafter
|
|
|
4,504
|
|
|
|
1.93
|
|
|
|
|
|
|
|
|
|
|
Total long-term FHLB advances
|
|
$
|
78,533
|
|
|
|
1.72
|
%
|
|
|
|
|
|
|
|
|
|
12. Income Taxes
The
Company files federal income tax returns on a calendar year basis. Income tax (benefit) expense for the years indicated is summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Current
|
|
$
|
7,889
|
|
|
$
|
6,040
|
|
|
$
|
4,690
|
|
Deferred
|
|
|
(321
|
)
|
|
|
631
|
|
|
|
516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income tax expense
|
|
$
|
7,568
|
|
|
$
|
6,671
|
|
|
$
|
5,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The components of the Companys net deferred tax asset as of December 31 of the years indicated are as follows:
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Deferred tax assets:
|
|
|
|
|
|
|
|
|
Provision for loan losses
|
|
$
|
4,378
|
|
|
$
|
3,341
|
|
Discount on purchased loans
|
|
|
514
|
|
|
|
1,278
|
|
Acquired tax credits
|
|
|
|
|
|
|
1,069
|
|
Salary continuation plan
|
|
|
978
|
|
|
|
929
|
|
Mortgage servicing rights
|
|
|
|
|
|
|
150
|
|
Deferred compensation
|
|
|
141
|
|
|
|
120
|
|
Stock-based compensation
|
|
|
697
|
|
|
|
730
|
|
Real estate owned
|
|
|
359
|
|
|
|
143
|
|
Other
|
|
|
1,251
|
|
|
|
1,808
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets
|
|
$
|
8,318
|
|
|
$
|
9,568
|
|
|
|
|
|
|
|
|
|
|
73
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Deferred tax liabilities:
|
|
|
|
|
|
|
|
|
FHLB stock dividends
|
|
$
|
(88
|
)
|
|
$
|
(60
|
)
|
Accumulated depreciation
|
|
|
(2,418
|
)
|
|
|
(2,963
|
)
|
Intangible assets
|
|
|
(677
|
)
|
|
|
(898
|
)
|
Unrealized gain on securities available for sale
|
|
|
(6
|
)
|
|
|
(469
|
)
|
Mortgage servicing rights
|
|
|
(49
|
)
|
|
|
|
|
Premium on investment securities acquired
|
|
|
(950
|
)
|
|
|
(760
|
)
|
Other
|
|
|
(125
|
)
|
|
|
(1,721
|
)
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
(4,313
|
)
|
|
|
(6,871
|
)
|
|
|
|
|
|
|
|
|
|
Net deferred tax asset
|
|
$
|
4,005
|
|
|
$
|
2,697
|
|
|
|
|
|
|
|
|
|
|
For the years ended December 31, 2016, 2015 and 2014, the Companys provision for federal income taxes differed from
the amount computed by applying the federal income tax statutory rate of 35% on income from operations as indicated in the following analysis:
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Federal tax based on statutory rate
|
|
$
|
8,232
|
|
|
$
|
6,706
|
|
|
$
|
5,263
|
|
State tax based on statutory rate
|
|
|
55
|
|
|
|
60
|
|
|
|
41
|
|
(Decrease) increase resulting from:
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of
tax-exempt
income
|
|
|
(228
|
)
|
|
|
(242
|
)
|
|
|
(225
|
)
|
Changes the cash surrender value of bank owned life insurance
|
|
|
(169
|
)
|
|
|
(176
|
)
|
|
|
(160
|
)
|
Nondeductible merger-related expenses
|
|
|
4
|
|
|
|
261
|
|
|
|
52
|
|
Nondeductible share based compensation expense
|
|
|
246
|
|
|
|
178
|
|
|
|
203
|
|
Exercise of stock options
|
|
|
(606
|
)
|
|
|
(105
|
)
|
|
|
|
|
Other
|
|
|
34
|
|
|
|
(11
|
)
|
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
$
|
7,568
|
|
|
$
|
6,671
|
|
|
$
|
5,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
32.1
|
%
|
|
|
34.7
|
%
|
|
|
34.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings as of December 31, 2016 and 2015, included $5,837,000 for which no deferred federal income tax
liability has been recognized. This amount represents an allocation of income to bad debt deductions for tax purposes only. Reductions of amounts so allocated for purposes other than bad debt losses would create income for tax purposes only, which
would be subject to the then-current federal statutory income tax rate. The unrecorded deferred income tax liability on the above amount was $1,985,000 as of December 31, 2016 and 2015. Current accounting standards do not require the accrual of
this deferred tax amount to be recorded unless it is probable that the reserve (for tax purposes) will be significantly depleted by loan losses deductible for tax purposes in the future. Based on current estimates of losses within the Companys
loan portfolio, accrual of the deferred tax liability associated with this reserve was not required as of December 31, 2016 and 2015.
13.
Commitments and Contingencies
Standby letters of credit represent commitments by the Bank to meet the obligations of certain customers if called upon.
The Bank normally secures its outstanding standby letters of credit with deposits from the customer. Additionally, in the normal course of business, there were various other commitments and contingent liabilities which are not reflected in the
financial statements. Loan commitments are single-purpose commitments to lend
74
which will be funded and reduced according to specified repayment schedules. Most of these commitments have
maturities of less than one year. The following table summarizes our outstanding commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and the undisbursed portion of construction
loans as of December 31 of the years indicated.
|
|
|
|
|
|
|
|
|
|
|
Contract Amount
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Standby letters of credit
|
|
$
|
5,233
|
|
|
$
|
3,764
|
|
Available portion of lines of credit
|
|
|
141,968
|
|
|
|
127,393
|
|
Undisbursed portion of loans in process
|
|
|
62,791
|
|
|
|
73,699
|
|
Commitments to originate loans
|
|
|
98,714
|
|
|
|
89,653
|
|
The Bank uses the same credit policies in making commitments as it does for
on-balance-sheet
instruments. The Bank evaluates each customers creditworthiness on a
case-by-case
basis. The amount of
collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on managements credit evaluation of the customer. Collateral held varies but may include certificates of deposit, property, plant and equipment and
income-producing properties. There are no commitments which present an unusual risk to the Bank, and no material losses are anticipated as a result of these transactions.
14. Regulatory Matters
The Bank is subject to regulatory
capital requirements administered by the OCC. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the
Companys financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities and
certain
off-balance
sheet items as calculated under regulatory accounting practices. The Company and the Banks capital amounts and classification are also subject to qualitative judgments by the
regulators about components, risk weightings and other factors.
In July 2013, the Federal bank regulatory agencies issued a final rule that revised their
risk-based capital requirements and the method for calculating components of capital and of computing risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions
of the Dodd-Frank Act. The final rule applies to all depository institutions and
top-tier
bank holding companies with total consolidated assets of $1.0 billion or more. The rule establishes a new common
equity Tier 1 minimum capital requirement, increases the minimum capital ratios and assigns a higher risk weight to certain assets based on the risk associated with these assets. The final rule includes transition periods that generally implement
the new regulations over a five year period. Beginning January 1, 2016, minimum Common equity tier 1, Tier 1 risk-based capital and Total risk-based are subject to a capital conservation buffer of 0.625%. This capital buffer will increase in
subsequent years by 0.625% annually until it is fully phased in on January 1, 2019 at 2.5%.
Dividends paid by the Bank are the primary source of
funds available to the Company. Banking regulations limit the amount of dividends that may be paid without prior approval of the regulatory authorities.
Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth
in the table below) of total and Tier 1 capital (as defined) to average assets and risk-weighted assets (as defined). Management believes, as of December 31, 2016 and 2015, that the Company and the Bank met all capital adequacy requirements to
which it was subject.
As of December 31, 2016 and 2015, the most recent notification from the OCC categorized the Bank as well
capitalized under the OCC regulatory classification framework. To be categorized as well capitalized, the Bank must maintain minimum Total risk-based, Tier 1 risk-based, Tier 1 leverage and tangible capital ratios as set forth in
the following table. There are no conditions or events since that notification that management believes have changed the Banks category.
75
The following table presents actual and required capital ratios for the Company and the Bank under the
Basel III Capital Rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2016 based on the
phase-in
provisions of the Basel III
Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully
phased-in.
Capital levels required to be considered well capitalized are
based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. The Companys and the Banks actual capital amounts and ratios are presented for December 31, 2015 without the
phase-in
provisions.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
|
|
|
Minimum Capital
Required Basel III
Phase-In Schedule
|
|
|
Minimum Capital
Required Basel III
Fully Phased-In
|
|
|
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions
|
|
(dollars in thousands)
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 risk-based capital
|
|
$
|
168,433
|
|
|
|
14.24
|
%
|
|
$
|
78,363
|
|
|
|
6.625
|
%
|
|
$
|
100,541
|
|
|
|
8.50
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
Total risk-based capital
|
|
|
180,943
|
|
|
|
15.30
|
|
|
|
102,020
|
|
|
|
8.625
|
|
|
|
124,198
|
|
|
|
10.50
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Tier 1 leverage capital
|
|
|
168,433
|
|
|
|
10.98
|
|
|
|
61,377
|
|
|
|
4.00
|
|
|
|
61,377
|
|
|
|
4.00
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
Bank:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity Tier 1 capital (to risk-weighted assets)
|
|
$
|
152,512
|
|
|
|
12.91
|
%
|
|
$
|
60,564
|
|
|
|
5.125
|
%
|
|
$
|
82,721
|
|
|
|
7.00
|
%
|
|
$
|
76,813
|
|
|
|
6.50
|
%
|
Tier 1 risk-based capital
|
|
|
152,512
|
|
|
|
12.91
|
|
|
|
78,290
|
|
|
|
6.625
|
|
|
|
100,447
|
|
|
|
8.50
|
|
|
|
94,539
|
|
|
|
8.00
|
|
Total risk-based capital
|
|
|
165,022
|
|
|
|
13.96
|
|
|
|
101,924
|
|
|
|
8.625
|
|
|
|
124,082
|
|
|
|
10.50
|
|
|
|
118,173
|
|
|
|
10.00
|
|
Tier 1 leverage capital
|
|
|
152,512
|
|
|
|
9.94
|
|
|
|
61,376
|
|
|
|
4.00
|
|
|
|
61,376
|
|
|
|
4.00
|
|
|
|
76,720
|
|
|
|
5.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Actual
|
|
|
Minimum
For Capital
Adequacy Purposes
|
|
|
To Be Well Capitalized
Under Prompt
Corrective Action
Provisions
|
|
December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 risk-based capital:
|
|
$
|
151,221
|
|
|
|
13.05
|
%
|
|
$
|
69,534
|
|
|
|
6.0
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
Total risk-based capital:
|
|
|
160,769
|
|
|
|
13.87
|
|
|
|
92,712
|
|
|
|
8.0
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Tier 1 leverage capital:
|
|
|
151,221
|
|
|
|
9.82
|
|
|
|
61,569
|
|
|
|
4.0
|
|
|
|
N/A
|
|
|
|
N/A
|
|
Bank
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 (to risk-weighted assets):
|
|
$
|
134,348
|
|
|
|
11.61
|
%
|
|
$
|
52,087
|
|
|
|
4.5
|
%
|
|
$
|
75,237
|
|
|
|
6.5
|
%
|
Tier 1 risk-based capital:
|
|
|
134,348
|
|
|
|
11.61
|
|
|
|
69,449
|
|
|
|
6.0
|
|
|
|
92,599
|
|
|
|
8.0
|
|
Total risk-based capital:
|
|
|
143,895
|
|
|
|
12.43
|
|
|
|
92,599
|
|
|
|
8.0
|
|
|
|
115,749
|
|
|
|
10.0
|
|
Tier 1 leverage capital:
|
|
|
134,348
|
|
|
|
8.74
|
|
|
|
61,512
|
|
|
|
4.0
|
|
|
|
76,890
|
|
|
|
5.0
|
|
15. Benefit Plans
401(k) Match and Profit Sharing Plan
The Companys
401(k) defined contribution plan allows its participants to contribute up to 75% of their pretax earnings on a
tax-deferred
basis up to the statutory limit, and the Company contributes a matching contribution
on behalf of plan participants limited to 4% of the employees salaries. For the years ended December 31, 2016, 2015 and 2014, the Company made contributions of $657,000, $596,000 and $524,000, respectively, in connection with the plans,
which is included in compensation and benefits expense in the accompanying statements of income.
76
Employee Stock Ownership Plan
In 2008, the Company established an employee stock ownership plan (ESOP) for the benefit of all eligible employees of the Company. The leveraged
ESOP is accounted for in accordance with the requirements of ASC 718, Compensation Stock Compensation.
Employees of the Bank who have been
employed for a
six-month
period and who have attained age 21 are eligible to participate in the ESOP. It is anticipated that contributions will be made to the plan in amounts necessary to amortize the debt to
the Company over a period of 20 years.
Under ASC 718, unearned ESOP shares are not considered outstanding and are shown as a reduction of
shareholders equity as unearned compensation. Dividends on unallocated ESOP shares are considered to be compensation expense. The Company recognizes compensation cost equal to the fair value of the ESOP shares during the periods in which they
are committed to be released. To the extent that the fair value of the Companys ESOP shares differ from the cost of such shares, the differential is credited to shareholders equity. The Company receives a tax deduction equal to the cost
of the shares released. As the loan is internally leveraged, the loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP shown as a Company liability.
Compensation cost related to the ESOP was $928,000, $795,000 and $756,000 for the years ended December 31, 2016, 2015 and 2014, respectively. The fair
value of the unearned ESOP shares, using the closing quoted market price per share as of
year-end,
was approximately $16,199,000 and $11,828,000 as of December 31, 2016 and 2015, respectively. A summary
of the ESOP share allocation as of December 31, 2016 and 2015 follows.
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
Shares allocated, beginning of year
|
|
|
219,415
|
|
|
|
198,836
|
|
Shares allocated during the year
|
|
|
35,708
|
|
|
|
35,708
|
|
Shares distributed during the year
|
|
|
(20,063
|
)
|
|
|
(15,129
|
)
|
|
|
|
|
|
|
|
|
|
Allocated shares held by ESOP trust as of year end
|
|
|
235,060
|
|
|
|
219,415
|
|
Unallocated shares
|
|
|
419,563
|
|
|
|
455,271
|
|
|
|
|
|
|
|
|
|
|
Total ESOP shares
|
|
|
654,623
|
|
|
|
674,686
|
|
|
|
|
|
|
|
|
|
|
Salary Continuation Agreements
As a supplement to its 401(k) retirement plan, the Bank has entered into nonqualified salary continuation agreements with two executive officers of the Bank.
Under his salary continuation agreement, the Chief Executive Officer (CEO) will be entitled to a stated annual benefit for a period of ten years upon retirement from the Bank after attaining age 62. Benefits under the agreement vest over
ten years, with 50% of this benefit having vested in 2007. In the event of early retirement, the Bank shall pay the CEO his vested benefits in 120 equal monthly installments upon his attaining age 62. Upon death during active service, the Bank shall
distribute to the executives beneficiary an amount equal to two times his fully vested normal retirement benefit, payable in monthly installments over five years.
In the event of a separation from service within 24 months following a change in control but prior to normal retirement age, the Bank shall distribute to the
CEO his fully vested annual benefit in 12 equal monthly installments for ten years beginning the earlier of 24 months after separation from service or age 62. If separation from service occurs more than 24 months following a change in control, the
annual benefit shall be distributed beginning at age 62.
The Banks nonqualified salary continuation agreement with its Chief Credit Officer
provides that the executive will be entitled to a stated annual benefit for a period of ten years upon retirement from the Bank after attaining age 65, distributed monthly. In the event of early retirement, the Bank shall pay the executive his
vested benefits in 120 equal monthly installments upon attaining age 65. Upon death during active service, the Bank shall distribute the fully vested normal retirement benefit to the executives beneficiary in 120 monthly installments. In
77
the event of a separation from service within 24 months following a change in control but prior to normal
retirement age, the Bank shall distribute to the executive the vested portion of the annual benefit in a lump sum on the first day of the month following the separation from service. Benefits are subject to a
six-month
delay to the extent required by applicable law.
Britton & Koontz had two salary continuation
agreements funded in the amount of $465,000 at the time of acquisition in February 2014. The Bank will pay former executives of Britton & Koontz or their beneficiary over the next 15 years. Louisiana Bancorp also had two salary continuation
agreements funded in the amount of $1,200,000 at the time of acquisition in September 2015. The Bank will pay former executives of Louisiana Bancorp or their beneficiary within the next 10 years. The Company had an outstanding liability totaling
$2,795,000 and $2,868,000 as of December 31, 2016 and 2015, respectively, in connection with the agreements.
16. Stock-based Payment Arrangements
The Companys shareholders approved the 2009 Stock Option Plan (the SOP) and the 2009 Recognition and Retention Plan (the
RRP) on May 12, 2009 to provide incentives and awards for directors, officers and other key employees of the Company and its subsidiary. A maximum of 892,687 shares of Company common stock were reserved for issuance upon the
exercise of options granted under the SOP. A total of 357,075 shares of the Companys outstanding common stock, or 4% of total shares outstanding at the time the RRP was implemented, were approved for restricted stock awards under the RRP. On
May 6, 2014, the Companys shareholders approved the 2014 Equity Incentive Plan (the 2014 Plan). The 2014 Plan authorizes the granting of stock options, restricted stock units, and other awards to directors, officers and other
key employees. The aggregate number of shares of our common stock reserved and available for issuance pursuant to awards granted under the 2014 Plan is 350,000. These plans are administered by a committee appointed by the Board of Directors, which
selects persons eligible to receive awards and determines the number of shares and/or options subject to each award, the terms, conditions and other provisions of the awards. In accordance with ASC 718, the Company adopted a fair value based
method of accounting for employee stock compensation plans, whereby compensation cost is measured as of the grant date based on the fair value of the award and is recognized over the service period, which is usually the vesting period.
Stock Option Plans
The Company issues stock options
under the SOP and the 2014 Plan to directors, officers and other key employees. The option exercise price cannot be less than the fair value of the underlying common stock as of the date of the option grant and the maximum option term cannot exceed
ten years. All stock options granted have been issued with vesting periods of five years with accelerated vesting provided under certain circumstances. As of December 31, 2016, options to acquire an aggregate of 484,688 shares were outstanding
under the SOP and the 2014 Plan.
The fair value of each option granted is estimated on the grant date using the Black-Scholes option pricing model. This
model requires management to make certain assumptions, including the expected life of the option, the risk-free rate of interest, the expected volatility and the expected dividend yield. The following assumptions were made in estimating 2016 fair
values:
|
|
|
|
|
Expected dividends
|
|
|
1.4
|
%
|
Expected volatility
|
|
|
20.34
|
%
|
Risk-free interest rate
|
|
|
1.6
|
%
|
Expected term (in years)
|
|
|
6.5
|
|
As of December 31, 2016, there was $387,000 of unrecognized compensation cost related to stock options which is expected
to be recognized over a period of 3.6 years.
78
For the years ended December 31, 2016, 2015 and 2014, the Company recognized $132,000, $70,000 and $295,000,
respectively, in compensation cost related to stock options, which is included in compensation and benefits expense in the accompanying consolidated statements of income.
The following table represents stock option activity for the year ended December 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options
|
|
Number of
Options
|
|
|
Weighted-
Average
Exercise
Price
|
|
|
Weighted-
Average
Grant Date
Fair Value
|
|
|
Weighted-
Average
Remaining
Contractual
Term
(Years)
|
|
Outstanding as of January 1, 2016
|
|
|
559,733
|
|
|
$
|
12.85
|
|
|
$
|
4.02
|
|
|
|
|
|
Granted
|
|
|
47,725
|
|
|
|
27.96
|
|
|
|
5.33
|
|
|
|
|
|
Exercised
|
|
|
(119,230
|
)
|
|
|
11.88
|
|
|
|
3.91
|
|
|
|
|
|
Forfeited
|
|
|
(3,540
|
)
|
|
|
16.64
|
|
|
|
4.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding as of December 31, 2016
|
|
|
484,688
|
|
|
$
|
14.55
|
|
|
$
|
4.17
|
|
|
|
3.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exercisable as of December 31, 2016
|
|
|
391,215
|
|
|
$
|
12.18
|
|
|
$
|
3.93
|
|
|
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted Stock Plans
The Company has issued restricted stock under the RRP to directors, officers and other key employees. During 2009, the Company purchased in the open market all
shares required to fund the RRP at an average cost of $11.81 per share. As of December 31, 2016, the cost of such shares held by the RRP totaled $119,633, which is included in the Companys unallocated common stock held by the RRP in the
consolidated statements of financial condition. Under the 2014 Plan, the Company may issue restricted stock units, restricted stock awards, options and other awards.
Awards under the RRP and the 2014 Plan may not be sold or otherwise transferred until certain restrictions have lapsed. The unearned compensation related to
these awards is amortized to compensation expense over the five-year vesting period. The total share-based compensation expense for these awards is determined based on the market price of the Companys common stock as of the date of grant
applied to the total number of shares granted and is amortized over the vesting period. As of December 31, 2016, unearned share-based compensation associated with these awards totaled $1,042,000.
For the years ended December 31, 2016, 2015 and 2014, the Company recognized $239,000, $51,000 and $401,000, respectively, in compensation cost related
to restricted stock and restricted stock units, which is included in compensation and benefits expense in the accompanying consolidated statements of income.
The following table represents unvested restricted stock activity in for the year ended December 31, 2016.
|
|
|
|
|
|
|
|
|
|
|
Number of
Shares
|
|
|
Weighted-Average
Grant Date Fair Value
|
|
Balance, beginning of year
|
|
|
30,815
|
|
|
$
|
16.25
|
|
Granted
|
|
|
25,645
|
|
|
|
27.96
|
|
Forfeited
|
|
|
(200
|
)
|
|
|
22.25
|
|
Released
|
|
|
(7,703
|
)
|
|
|
13.00
|
|
|
|
|
|
|
|
|
|
|
Balance, end of period
|
|
|
48,557
|
|
|
|
22.93
|
|
|
|
|
|
|
|
|
|
|
79
17. Earnings Per Share
Earnings per common share was computed based on the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|
(in thousands, except per share data)
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income applicable to common shares
|
|
$
|
16,008
|
|
|
$
|
12,550
|
|
|
$
|
9,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding
|
|
|
6,842
|
|
|
|
6,708
|
|
|
|
6,553
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted stock
|
|
|
4
|
|
|
|
4
|
|
|
|
25
|
|
Stock options
|
|
|
261
|
|
|
|
289
|
|
|
|
355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - assuming dilution
|
|
|
7,107
|
|
|
|
7,001
|
|
|
|
6,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
$
|
2.34
|
|
|
$
|
1.87
|
|
|
$
|
1.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - assuming dilution
|
|
$
|
2.25
|
|
|
$
|
1.79
|
|
|
$
|
1.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options on 70,522, 45,877 and 26,500 shares of common stock were not included in computing diluted earnings per share for the
years ended December 31, 2016, 2015 and 2014, respectively, because the effect of these shares were anti-dilutive.
18. Related Party Transactions
Certain directors and officers of the Company are customers of the Company. Loan transactions with directors, officers and employees are made on the
same terms as those prevailing at the time for comparable loans to other persons. A summary of related party loan activity during 2016 follows.
|
|
|
|
|
(dollars in thousands)
|
|
|
|
Balance, beginning of year
|
|
$
|
7,590
|
|
New loans
|
|
|
1,198
|
|
Repayments, net
|
|
|
(7,297
|
)
|
|
|
|
|
|
Balance, end of year
|
|
$
|
1,491
|
|
|
|
|
|
|
None of the related party loans were identified as impaired or exceeded 5% of shareholders equity for the years ended
2016 or 2015.
Related party deposits totaled $14,252,000 and $28,904,000 as of December 31, 2016 and 2015, respectively.
19. Fair Value Disclosures
The Company values its
financial assets and liabilities measured at fair value in three levels as required by ASC 820, Fair Value Measurements and Disclosures. Under this guidance, fair value should be based on the assumptions market participants would use when pricing
the asset or liability and establishes a fair value hierarchy that prioritizes the inputs used to develop those assumptions and measure fair value. The hierarchy requires companies to maximize the use of observable inputs and minimize the use of
unobservable inputs. The three levels of inputs used to measure fair value are as follows:
80
|
|
|
Level 1 Quoted prices in active markets for identical assets or liabilities.
|
|
|
|
Level 2 Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and
liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
|
|
|
|
Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted
cash flow methodologies and similar techniques that use significant unobservable inputs.
|
An assets or liabilitys categorization
within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Management reviews and updates the fair value hierarchy classifications of the Companys assets and liabilities on a
quarterly basis.
Recurring Basis
Investment Securities Available for Sale
Fair values of
investment securities available for sale are primarily measured using information from a third-party pricing service. This pricing service provides pricing information by utilizing evaluated pricing models supported with market data
information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers and reference data from market research publications. If quoted prices are available in an
active market, investment securities are classified as Level 1 measurements. If quoted prices are not available in an active market, fair values were estimated primarily by the use of pricing models. Level 2 investment securities
were primarily comprised of mortgage-backed securities issued by government agencies and U.S. government-sponsored enterprises. In certain cases, where there is limited or less transparent information provided by the Companys third-party
pricing service, fair value is estimated by the use of secondary pricing services or through the use of
non-binding
third-party broker quotes. Investment securities are classified within Level 3 when
little or no market activity supports the fair value.
Management primarily identifies investment securities which may have traded in illiquid or inactive
markets by identifying instances of a significant decrease in the volume and frequency of trades, relative to historical levels, as well as instances of a significant widening of the
bid-ask
spread in the
brokered markets. Investment securities that are deemed to have been trading in illiquid or inactive markets may require the use of significant unobservable inputs. For example, management may use quoted prices for similar investment
securities in the absence of a liquid and active market for the investment securities being valued. As of December 31, 2016, management did not make adjustments to prices provided by the third-party pricing service as a result of illiquid
or inactive markets.
The following tables present the balances of assets and liabilities measured on a recurring basis as of December 31, 2016 and
2015 aggregated by the level in the fair value hierarchy in which these measurements fall.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
December 31, 2016
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
148,225
|
|
|
$
|
|
|
|
$
|
148,225
|
|
|
$
|
|
|
Non-U.S.
agency mortgage-backed
|
|
|
5,036
|
|
|
|
|
|
|
|
5,036
|
|
|
|
|
|
Municipal bonds
|
|
|
21,428
|
|
|
|
|
|
|
|
21,428
|
|
|
|
|
|
U.S. government agency
|
|
|
9,041
|
|
|
|
|
|
|
|
9,041
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
183,730
|
|
|
$
|
|
|
|
$
|
183,730
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
81
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
December 31, 2015
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Available for sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency mortgage-backed
|
|
$
|
135,478
|
|
|
$
|
|
|
|
$
|
135,478
|
|
|
$
|
|
|
Non-U.S.
agency mortgage-backed
|
|
|
6,065
|
|
|
|
|
|
|
|
6,065
|
|
|
|
|
|
Municipal bonds
|
|
|
22,933
|
|
|
|
|
|
|
|
22,933
|
|
|
|
|
|
U.S. government agency
|
|
|
12,286
|
|
|
|
|
|
|
|
12,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
176,762
|
|
|
$
|
|
|
|
$
|
176,762
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company did not record any liabilities at fair value for which measurement of the fair value was made on a recurring
basis.
Nonrecurring Basis
In accordance with
the provisions of ASC 310, Receivables, the Company records loans considered impaired at their fair value. A loan is considered impaired if it is probable the Company will be unable to collect all amounts due according to the contractual terms of
the loan agreement. Fair value is measured at the fair value of the collateral for collateral-dependent loans. For
non-collateral-dependent
loans, fair value is measured by present valuing expected future cash
flows. Impaired loans are classified as Level 3 assets when measured using appraisals from external parties of the collateral less any prior liens. Repossessed assets are initially recorded at fair value less estimated costs to sell. The fair
value of repossessed assets is based on property appraisals and an analysis of similar properties available. As such, the Company classifies repossessed assets as Level 3 assets.
The Company has segregated all financial assets and liabilities that are measured at fair value on a nonrecurring basis into the most appropriate level within
the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using
|
|
(dollars in thousands)
|
|
December 31, 2016
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans
|
|
$
|
4,763
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
4,763
|
|
Repossessed assets
|
|
|
2,893
|
|
|
|
|
|
|
|
|
|
|
|
2,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
7,656
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
7,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Using
|
|
(dollars in thousands)
|
|
December 31, 2015
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans
|
|
$
|
813
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
813
|
|
Repossessed assets
|
|
|
3,128
|
|
|
|
|
|
|
|
|
|
|
|
3,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
3,941
|
|
|
$
|
|
|
|
$
|
|
|
|
$
|
3,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
82
The following table show significant unobservable inputs used in the fair value measurement of Level 3
assets.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
Fair
Value
|
|
|
Valuation
Technique
|
|
|
Unobservable
Inputs
|
|
|
Range of
Discounts
|
|
Weighted
Average
Discount
|
|
As of December 31, 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans
|
|
$
|
4,763
|
|
|
|
Third party
appraisals and
discounted cash
flows
|
|
|
|
Collateral
discounts and
discount
rates
|
|
|
0% - 100%
|
|
|
15%
|
|
|
|
|
|
|
|
Repossessed assets
|
|
$
|
2,893
|
|
|
|
Third party
appraisals, sales
contracts,
Broker price
opinions
|
|
|
|
Collateral
discounts and
estimated
costs to sell
|
|
|
6% - 96%
|
|
|
19%
|
|
|
|
|
|
|
|
As of December 31, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired loans
|
|
$
|
813
|
|
|
|
Third party
appraisals and
discounted cash
flows
|
|
|
|
Collateral
discounts and
discount
rates
|
|
|
0% - 100%
|
|
|
15%
|
|
|
|
|
|
|
|
Repossessed assets
|
|
$
|
3,128
|
|
|
|
Third party
appraisals, sales
contracts,
Broker price
opinions
|
|
|
|
Collateral
discounts and
estimated
costs to sell
|
|
|
6% - 96%
|
|
|
19%
|
|
ASC 820, Fair Value Measurements and Disclosures, requires the disclosure of each class of financial instruments for which it
is practicable to estimate. The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However,
in many instances, there are no quoted market prices for the Companys various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques.
Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. ASC 820
excludes certain financial instruments and all
non-financial
instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying
fair value of the Company.
Fair value estimates are made at a specific point in time, based on relevant market information and information about the
financial statement element. 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 included herein are based on existing
on-
and
off-balance-sheet
financial instruments without attempting to estimate the value of anticipated future business and the fair value of assets and liabilities that are not required to be recorded or disclosed at
fair value like 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.
83
The following methods and assumptions were used to estimate the fair value of each class of financial instruments
for which it is practicable to estimate that value:
The carrying value of cash and cash equivalents and interest-bearing deposits in banks approximate
their fair value.
The fair value for investment securities is determined from quoted market prices when available. If a quoted market price is not
available, fair value is estimated using third party pricing services or quoted market prices of securities with similar characteristics.
The carrying
value of mortgage loans held for sale are recorded at the lower of aggregate cost or market value, which is a reasonable estimate of fair value.
The fair
value of loans are estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturity.
The cash surrender value of bank-owned life insurance (BOLI) approximates its fair value.
The fair value of demand deposits, savings and interest-bearing demand deposits is the amount payable on demand. 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 carrying
amount of the FHLB advances is estimated using the rates currently offered for advances of similar maturities.
The carrying value of the securities sold
under repurchase agreement is its fair value.
The fair value of
off-balance
sheet financial instruments as of
December 31, 2016 and 2015 was immaterial.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
Amount
|
|
|
Fair Value Measurements at December 31, 2016
|
|
(dollars in thousands)
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
29,315
|
|
|
$
|
29,315
|
|
|
$
|
29,315
|
|
|
$
|
|
|
|
$
|
|
|
Interest-bearing deposits in banks
|
|
|
1,884
|
|
|
|
1,884
|
|
|
|
1,884
|
|
|
|
|
|
|
|
|
|
Investment securities available for sale
|
|
|
183,730
|
|
|
|
183,730
|
|
|
|
|
|
|
|
183,730
|
|
|
|
|
|
Investment securities held to maturity
|
|
|
13,365
|
|
|
|
13,362
|
|
|
|
|
|
|
|
13,362
|
|
|
|
|
|
Mortgage loans held for sale
|
|
|
4,156
|
|
|
|
4,156
|
|
|
|
|
|
|
|
4,156
|
|
|
|
|
|
Loans, net
|
|
|
1,215,323
|
|
|
|
1,205,538
|
|
|
|
|
|
|
|
1,200,775
|
|
|
|
4,763
|
|
Cash surrender value of BOLI
|
|
|
20,150
|
|
|
|
20,150
|
|
|
|
20,150
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
1,248,072
|
|
|
$
|
1,247,526
|
|
|
$
|
|
|
|
$
|
1,247,526
|
|
|
$
|
|
|
Short-term FHLB advances
|
|
|
40,000
|
|
|
|
40,000
|
|
|
|
40,000
|
|
|
|
|
|
|
|
|
|
Long-term FHLB advances
|
|
|
78,533
|
|
|
|
78,039
|
|
|
|
|
|
|
|
78,039
|
|
|
|
|
|
84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
Amount
|
|
|
Fair Value Measurements at December 31, 2015
|
|
(dollars in thousands)
|
|
|
Total
|
|
|
Level 1
|
|
|
Level 2
|
|
|
Level 3
|
|
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
24,798
|
|
|
$
|
24,798
|
|
|
$
|
24,798
|
|
|
$
|
|
|
|
$
|
|
|
Interest-bearing deposits in banks
|
|
|
5,144
|
|
|
|
5,144
|
|
|
|
5,144
|
|
|
|
|
|
|
|
|
|
Investment securities available for sale
|
|
|
176,762
|
|
|
|
176,762
|
|
|
|
|
|
|
|
176,762
|
|
|
|
|
|
Investment securities held to maturity
|
|
|
13,927
|
|
|
|
14,121
|
|
|
|
|
|
|
|
14,121
|
|
|
|
|
|
Mortgage loans held for sale
|
|
|
5,651
|
|
|
|
5,651
|
|
|
|
|
|
|
|
5,651
|
|
|
|
|
|
Loans, net
|
|
|
1,214,818
|
|
|
|
1,216,370
|
|
|
|
|
|
|
|
1,215,557
|
|
|
|
813
|
|
Cash surrender value of BOLI
|
|
|
19,667
|
|
|
|
19,667
|
|
|
|
19,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
1,244,217
|
|
|
$
|
1,243,698
|
|
|
$
|
|
|
|
$
|
1,243,698
|
|
|
$
|
|
|
Short-term FHLB advances
|
|
|
39,939
|
|
|
|
39,939
|
|
|
|
39,939
|
|
|
|
|
|
|
|
|
|
Long-term FHLB advances
|
|
|
85,213
|
|
|
|
84,711
|
|
|
|
|
|
|
|
84,711
|
|
|
|
|
|
20. Condensed Parent Company Only Financial Statements
Condensed financial statements of Home Bancorp, Inc. (parent company only) are shown below. The parent company has no significant operating activities.
Condensed Balance Sheets
December 31, 2016 and
2015
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
Assets
|
|
|
|
|
|
|
|
|
Cash in bank
|
|
$
|
14,924
|
|
|
$
|
19,512
|
|
Investment in subsidiary
|
|
|
163,922
|
|
|
|
148,172
|
|
Other assets
|
|
|
1,102
|
|
|
|
1,333
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
179,948
|
|
|
$
|
169,017
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
$
|
105
|
|
|
$
|
3,971
|
|
Shareholders equity
|
|
|
179,843
|
|
|
|
165,046
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity
|
|
$
|
179,948
|
|
|
$
|
169,017
|
|
|
|
|
|
|
|
|
|
|
85
Condensed Statements of Operations
For the Years Ended December 31, 2016, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Operating income
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
|
|
|
$
|
|
|
|
$
|
1
|
|
Gain on sale of investment
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend from subsidiary
|
|
|
|
|
|
|
72,500
|
|
|
|
40,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating income
|
|
|
|
|
|
|
72,500
|
|
|
|
40,001
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses
|
|
|
|
|
|
|
|
|
|
|
5
|
|
Other expenses
|
|
|
192
|
|
|
|
142
|
|
|
|
147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
192
|
|
|
|
142
|
|
|
|
152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before income tax benefit and equity in undistributed earnings of
subsidiary
|
|
|
(192
|
)
|
|
|
72,358
|
|
|
|
39,849
|
|
|
|
|
|
Income tax benefit
|
|
|
(77
|
)
|
|
|
(57
|
)
|
|
|
(61
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before equity in undistributed earnings of subsidiary
|
|
|
(115
|
)
|
|
|
72,415
|
|
|
|
39,910
|
|
Undistributed earnings of subsidiary (Dividends received in excess of earnings of subsidiary)
|
|
|
16,123
|
|
|
|
(59,865
|
)
|
|
|
(30,038
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
16,008
|
|
|
$
|
12,550
|
|
|
$
|
9,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Statements of Cash Flows
For the Years Ended December 31, 2016, 2015 and 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands)
|
|
2016
|
|
|
2015
|
|
|
2014
|
|
Cash Flows from Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
16,008
|
|
|
$
|
12,550
|
|
|
$
|
9,872
|
|
Adjustments to reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
compensation
|
|
|
1,200
|
|
|
|
999
|
|
|
|
805
|
|
Decrease (increase) in accrued interest and other assets
|
|
|
135
|
|
|
|
(624
|
)
|
|
|
(58
|
)
|
Dividends received in excess of earnings from subsidiary (undistributed earnings in
subsidiary)
|
|
|
(16,123
|
)
|
|
|
59,865
|
|
|
|
30,038
|
|
(Decrease) Increase in accrued expenses and other liabilities
|
|
|
(3,865
|
)
|
|
|
3,855
|
|
|
|
(226
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
|
|
|
(2,645
|
)
|
|
|
76,645
|
|
|
|
40,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash paid in acquisitions
|
|
|
|
|
|
|
(57,455
|
)
|
|
|
(37,597
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Used in Investing Activities
|
|
|
|
|
|
|
(57,455
|
)
|
|
|
(37,597
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from exercise of stock options
|
|
|
1,416
|
|
|
|
3,282
|
|
|
|
581
|
|
Payment of dividends on common stock
|
|
|
(2,988
|
)
|
|
|
(2,162
|
)
|
|
|
(499
|
)
|
Issuance of stock under incentive plan
|
|
|
(14
|
)
|
|
|
|
|
|
|
|
|
Purchase of Companys common stock
|
|
|
(357
|
)
|
|
|
(3,466
|
)
|
|
|
(561
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Used in Financing Activities
|
|
|
(1,943
|
)
|
|
|
(2,346
|
)
|
|
|
(479
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Cash and Cash Equivalents
|
|
|
(4,588
|
)
|
|
|
16,844
|
|
|
|
2,355
|
|
|
|
|
|
Cash and Cash Equivalents as of Beginning of Period
|
|
|
19,512
|
|
|
|
2,668
|
|
|
|
313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents as of End of Period
|
|
$
|
14,924
|
|
|
$
|
19,512
|
|
|
$
|
2,668
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
86
21. Consolidated Quarterly Results of Operations (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share
data)
|
|
First
Quarter
|
|
|
Second
Quarter
|
|
|
Third
Quarter
|
|
|
Fourth
Quarter
|
|
Year Ended December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income
|
|
$
|
17,049
|
|
|
$
|
16,866
|
|
|
$
|
16,847
|
|
|
$
|
16,923
|
|
Total interest expense
|
|
|
1,326
|
|
|
|
1,313
|
|
|
|
1,308
|
|
|
|
1,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
15,723
|
|
|
|
15,553
|
|
|
|
15,539
|
|
|
|
15,602
|
|
Provision for loan losses
|
|
|
850
|
|
|
|
1,050
|
|
|
|
800
|
|
|
|
500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses
|
|
|
14,873
|
|
|
|
14,503
|
|
|
|
14,739
|
|
|
|
15,102
|
|
Noninterest income
|
|
|
2567
|
|
|
|
3,448
|
|
|
|
2,515
|
|
|
|
2,628
|
|
Noninterest expense
|
|
|
12,341
|
|
|
|
11,856
|
|
|
|
10,643
|
|
|
|
11,957
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
5,099
|
|
|
|
6,095
|
|
|
|
6,611
|
|
|
|
5,773
|
|
Income tax expense
|
|
|
1,749
|
|
|
|
2,079
|
|
|
|
2,251
|
|
|
|
1,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
3,350
|
|
|
$
|
4,016
|
|
|
$
|
4,360
|
|
|
$
|
4,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share basic
|
|
$
|
0.49
|
|
|
$
|
0.59
|
|
|
$
|
0.63
|
|
|
$
|
0.62
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share diluted
|
|
$
|
0.47
|
|
|
$
|
0.57
|
|
|
$
|
0.61
|
|
|
$
|
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share
data)
|
|
First
Quarter
|
|
|
Second
Quarter
|
|
|
Third
Quarter
|
|
|
Fourth
Quarter
|
|
Year Ended December 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income
|
|
$
|
13,305
|
|
|
$
|
13,588
|
|
|
$
|
14,425
|
|
|
$
|
17,092
|
|
Total interest expense
|
|
|
814
|
|
|
|
823
|
|
|
|
894
|
|
|
|
1,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
|
12,491
|
|
|
|
12,765
|
|
|
|
13,531
|
|
|
|
15,757
|
|
Provision for loan losses
|
|
|
538
|
|
|
|
294
|
|
|
|
569
|
|
|
|
670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income after provision for loan losses
|
|
|
11,953
|
|
|
|
12,471
|
|
|
|
12,962
|
|
|
|
15,087
|
|
Noninterest income
|
|
|
2,079
|
|
|
|
2,039
|
|
|
|
2,197
|
|
|
|
2,455
|
|
Noninterest expense
|
|
|
9,719
|
|
|
|
10,228
|
|
|
|
10,522
|
|
|
|
11,553
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
4,313
|
|
|
|
4,282
|
|
|
|
4,637
|
|
|
|
5,989
|
|
Income tax expense
|
|
|
1,465
|
|
|
|
1,441
|
|
|
|
1,739
|
|
|
|
2,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
2,848
|
|
|
$
|
2,841
|
|
|
$
|
2,898
|
|
|
$
|
3,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share basic
|
|
$
|
0.43
|
|
|
$
|
0.42
|
|
|
$
|
0.43
|
|
|
$
|
0.59
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share diluted
|
|
$
|
0.41
|
|
|
$
|
0.41
|
|
|
$
|
0.41
|
|
|
$
|
0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|