SMARTFINANCIAL INC., 10-Q filed on 11/8/2019
Quarterly Report
v3.19.3
Document And Entity Information - shares
9 Months Ended
Sep. 30, 2019
Nov. 06, 2019
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2019  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q3  
Entity Registrant Name SMARTFINANCIAL INC.  
Entity Central Index Key 0001038773  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   13,961,723
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Current Reporting Status Yes  
Entity Shell Company false  
v3.19.3
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
ASSETS:    
Cash and due from banks $ 23,110 $ 40,015
Interest-bearing deposits with banks 146,300 75,807
Federal funds sold 1,524 0
Total cash and cash equivalents 170,934 115,822
Securities available-for-sale, at fair value 171,507 201,688
Other investments 12,913 11,499
Loans held for sale 3,068 1,979
Loans 1,864,679 1,775,260
Less: Allowance for loan losses (9,792) (8,275)
Loans, net 1,854,887 1,766,985
Premises and equipment, net 58,386 56,012
Other real estate owned 1,561 2,495
Goodwill and core deposit intangible, net 77,534 79,034
Bank owned life insurance 24,796 24,381
Other assets 14,899 14,514
Total assets 2,390,485 2,274,409
Deposits:    
Noninterest-bearing demand 365,024 319,861
Interest-bearing demand 351,474 311,482
Money market and savings 634,934 641,945
Time deposits 646,641 648,676
Total deposits 1,998,073 1,921,964
Securities sold under agreement to repurchase 4,368 11,756
Federal Home Loan Bank advances and other borrowings 25,460 11,243
Subordinated debt 39,240 39,177
Other liabilities 17,304 7,258
Total liabilities 2,084,445 1,991,398
Shareholders' equity:    
Preferred stock, $1 par value; 2,000,000 shares authorized; No shares issued and outstanding 0 0
Common stock, $1 par value; 40,000,000 shares authorized; 13,957,973 and 13,933,504 shares issued and outstanding, respectively 13,958 13,933
Additional paid-in capital 232,573 231,852
Retained earnings 59,806 39,991
Accumulated other comprehensive loss (297) (2,765)
Total shareholders' equity 306,040 283,011
Total liabilities and shareholders' equity $ 2,390,485 $ 2,274,409
v3.19.3
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Sep. 30, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Preferred stock, par value (in dollars per share) $ 1 $ 1
Preferred stock, shares authorized (in shares) 2,000,000 2,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 1 $ 1
Common stock, shares authorized (in shares) 40,000,000 40,000,000
Common stock, shares issued (in shares) 13,957,973 13,933,504
Common stock, shares outstanding (in shares) 13,957,973 13,933,504
v3.19.3
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Interest income:        
Loans, including fees $ 25,515 $ 21,571 $ 75,768 $ 61,451
Securities available-for-sale:        
Taxable 748 839 2,591 2,611
Tax-exempt 338 129 1,173 240
Federal funds sold and other earning assets 743 529 2,059 1,137
Total interest income 27,344 23,068 81,591 65,439
Interest expense:        
Deposits 5,605 3,969 16,644 9,608
Securities sold under agreements to repurchase 5 11 19 35
Federal Home Loan Bank advances and other borrowings 10 209 231 568
Subordinated debt 584 19 1,757 19
Total interest expense 6,204 4,208 18,651 10,230
Net interest income 21,140 18,860 62,940 55,209
Provision for loan losses 724 302 1,914 1,607
Net interest income after provision for loan losses 20,416 18,558 61,026 53,602
Noninterest income:        
Customer service fees 767 624 2,129 1,753
Gain (loss) on sale of securities, net 1 0 34 (1)
Mortgage banking 518 493 1,192 1,181
Interchange and debit card transaction fees 148 144 467 409
Merger termination fee 0 0 6,400 0
Other 762 570 2,089 1,562
Total noninterest income 2,196 1,831 12,311 4,904
Noninterest expense:        
Salaries and employee benefits 9,072 7,934 26,357 22,759
Occupancy and equipment 1,635 1,638 4,967 4,694
FDIC insurance (219) 158 140 577
Other real estate and loan related expense 335 578 1,067 2,173
Advertising and marketing 263 228 817 627
Data processing 273 407 1,465 1,534
Professional services 573 727 1,724 1,987
Amortization of intangibles 341 248 1,027 664
Software as service contracts 560 507 1,696 1,477
Merger related and restructuring expenses 73 838 2,792 2,458
Other 1,802 1,497 5,045 4,346
Total noninterest expense 14,708 14,760 47,097 43,296
Income before income tax expense 7,904 5,629 26,240 15,210
Income tax expense 1,941 1,305 6,425 3,540
Net income $ 5,963 $ 4,324 $ 19,815 $ 11,670
Earnings per common share:        
Basic (in dollars per share) $ 0.43 $ 0.34 $ 1.42 $ 0.97
Diluted (in dollars per share) $ 0.42 $ 0.34 $ 1.41 $ 0.96
Weighted average common shares outstanding:        
Basic (in shares) 13,955,859 12,718,861 13,949,325 12,049,151
Diluted (in shares) 14,053,432 12,817,556 14,038,414 12,143,838
v3.19.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Statement of Comprehensive Income [Abstract]        
Net income $ 5,963 $ 4,324 $ 19,815 $ 11,670
Other comprehensive income, net of tax:        
Unrealized holding gains (losses) and hedge effects on securities available-for-sale arising during the period 275 (700) 2,493 (2,469)
Reclassification adjustment for (gains) losses realized (1) 0 (25) 1
Total other comprehensive income (loss) 274 (700) 2,468 (2,468)
Comprehensive income $ 6,237 $ 3,624 $ 22,283 $ 9,202
v3.19.3
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
BALANCE (in shares) at Dec. 31, 2017   11,152,561      
BALANCE at Dec. 31, 2017 $ 205,853 $ 11,153 $ 174,009 $ 21,889 $ (1,198)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 11,670     11,670  
Other comprehensive income (loss) (2,468)       (2,468)
Stock awards (in shares)   5,947      
Stock awards 9 $ 6 3    
Exercise of stock options (in shares)   132,783      
Exercise of stock options 1,519 $ 133 1,386    
Shareholders of TN Bancshares, Inc. (in shares)   1,458,981      
Shareholders of TN Bancshares, Inc. 34,732 $ 1,459 33,273    
Stock compensation expense 327   327    
BALANCE (in shares) at Sep. 30, 2018   12,750,272      
BALANCE at Sep. 30, 2018 251,642 $ 12,751 208,998 33,559 (3,666)
BALANCE (in shares) at Jun. 30, 2018   12,704,581      
BALANCE at Jun. 30, 2018 247,487 $ 12,705 208,513 29,235 (2,966)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 4,324     4,324  
Other comprehensive income (loss) (700)       (700)
Stock awards (in shares)   5,553      
Stock awards 0 $ 6 (6)    
Exercise of stock options (in shares)   40,138      
Exercise of stock options 447 $ 40 407    
Stock compensation expense 84   84    
BALANCE (in shares) at Sep. 30, 2018   12,750,272      
BALANCE at Sep. 30, 2018 251,642 $ 12,751 208,998 33,559 (3,666)
BALANCE (in shares) at Dec. 31, 2018   13,933,504      
BALANCE at Dec. 31, 2018 283,011 $ 13,933 231,852 39,991 (2,765)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 19,815     19,815  
Other comprehensive income (loss) 2,468       2,468
Stock awards (in shares)   3,298      
Stock awards 64 $ 3 61    
Exercise of stock options (in shares)   21,171      
Exercise of stock options 250 $ 22 228    
Stock compensation expense 432   432    
BALANCE (in shares) at Sep. 30, 2019   13,957,973      
BALANCE at Sep. 30, 2019 306,040 $ 13,958 232,573 59,806 (297)
BALANCE (in shares) at Jun. 30, 2019   13,953,209      
BALANCE at Jun. 30, 2019 299,611 $ 13,953 232,386 53,843 (571)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net income 5,963     5,963  
Other comprehensive income (loss) 274       274
Exercise of stock options (in shares)   4,764      
Exercise of stock options 38 $ 5 33    
Stock compensation expense 154   154    
BALANCE (in shares) at Sep. 30, 2019   13,957,973      
BALANCE at Sep. 30, 2019 $ 306,040 $ 13,958 $ 232,573 $ 59,806 $ (297)
v3.19.3
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Cash flows from operating activities:    
Net income $ 19,815,000 $ 11,670,000
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 3,296,000 2,943,000
Accretion of fair value purchase accounting adjustments, net (4,337,000) (5,426,000)
Provision for loan losses 1,914,000 1,607,000
Stock compensation expense 432,000 327,000
(Gain) loss from redemption and sale on securities available-for-sale (34,000) 1,000
Deferred income tax expense 1,178,000 1,097,000
Increase in cash surrender value of bank owned life insurance (415,000) (441,000)
Loss on disposal of fixed assets 14,000 41,000
Net (gains) losses from sale of other real estate owned (43,000) 434,000
Net gains from sale of loans (1,192,000) (1,181,000)
Origination of loans held for sale (49,333,000) (42,313,000)
Proceeds from sales of loans held for sale 49,435,000 45,750,000
Net change in:    
Accrued interest receivable (207,000) (678,000)
Accrued interest payable 900,000 228,000
Other assets (330,000) 3,039,000
Other liabilities 5,029,000 2,008,000
Net cash provided by operating activities 26,122,000 19,106,000
Cash flows from investing activities:    
Proceeds from sales of securities available-for-sale 16,515,000 24,563,000
Proceeds from maturities and calls of securities available-for-sale 15,555,000 2,525,000
Proceeds from paydowns of securities available-for-sale 10,166,000 14,457,000
Purchases of securities available-for-sale (6,074,000) (41,804,000)
Purchases of other investments (1,414,000) (3,840,000)
Net cash and cash equivalents received in business combination 0 5,653,000
Net increase in loans (85,424,000) (82,165,000)
Purchases of premises and equipment (4,506,000) (1,885,000)
Proceeds from sale of other real estate owned 1,395,000 3,446,000
Net cash used in investing activities (53,787,000) (79,050,000)
Cash flows from financing activities:    
Net increase in deposits 75,634,000 65,879,000
Net decrease in securities sold under agreements to repurchase (7,388,000) (7,268,000)
Issuance of common stock 314,000 1,528,000
Net proceeds from subordinated debt 0 39,158,000
Proceeds from Federal Home Loan Bank advances and other borrowings 145,176,000 160,700,000
Repayment of Federal Home Loan Bank advances and other borrowings (130,959,000) (182,976,000)
Net cash provided by financing activities 82,777,000 77,021,000
Net change in cash and cash equivalents 55,112,000 17,077,000
Cash and cash equivalents, beginning of period 115,822,000 113,027,000
Cash and cash equivalents, end of period 170,934,000 130,104,000
Supplemental disclosures of cash flow information:    
Cash paid during the period for interest 17,751,000 10,003,000
Cash paid during the period for income taxes 3,635,000 726,000
Noncash investing and financing activities:    
Change in unrealized (gains) losses on securities available-for-sale (3,263,000) 3,255,000
Acquisition of real estate through foreclosure 417,000 3,151,000
Financed sales of other real estate owned 0 257,000
Change in goodwill due to acquisition (473,000) 15,791,000
Initial recognition of operating lease right-of-use assets 2,344,000 0
Initial recognition of operating lease liabilities $ 2,344,000 $ 0
v3.19.3
Presentation of Financial Information
9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Presentation of Financial Information
Presentation of Financial Information
  
Nature of Business:

SmartFinancial, Inc. (the "Company") is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, SmartBank (the "Bank"). The Company provides a variety of financial services to individuals and corporate customers through its offices in Tennessee, Alabama, Florida, and Georgia. The Bank's primary deposit products are noninterest-bearing and interest-bearing demand deposits, savings and money market deposits, and time deposits. Its primary lending products are commercial, residential, and consumer loans.

Basis of Presentation and Accounting Estimates:

The consolidated financial information in this report for September 30, 2019 and September 30, 2018 has not been audited by an independent registered public accounting firm. The consolidated financial statements presented herein conform to U.S. generally accepted accounting principles ("GAAP") and to general industry practices. In the opinion of the Company’s management, the accompanying interim financial statements contain all material adjustments necessary to present fairly the Company's financial condition, the results of operations, and cash flows for the interim period. Results for interim periods are not necessarily indicative of the results to be expected for a full year. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and 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 relate to the determination of the allowance for loan losses, the valuation of foreclosed assets and deferred taxes, other than temporary impairments of securities, the fair value of financial instruments, goodwill, and the fair value of assets acquired and liabilities assumed in acquisitions.
 
Recently Issued and Adopted Accounting Pronouncements:

As of January 1, 2019, the Company adopted certain accounting standard updates related to accounting for leases (Topic 842 - Leases), primarily Accounting Standards Update ASU 2016-02 and subsequent updates. Among other things, these updates require lessees to recognize a lease liability, measured on a discounted basis, related to the lessee's obligation to make lease payments arising under a lease contract; and a right-of-use asset related to the lessee's right to use, or control the use of, a specified asset for the lease term. The updates did not significantly change lease accounting requirements applicable to lessors and did not significantly impact the Company's consolidated financial statements in relation to contracts whereby the Company acts as a lessor. The Company adopted the updates using a modified-retrospective transition approach and recognized right-of-use lease assets and related lease liabilities as of January 1, 2019. See Note 8 Leases for more information.

In February 2016, the FASB issued ASU No. 2016-02, Leases. Under the new guidance, lessees are required to recognize the following for all leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee’s obligation to make lease payments, and 2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. Leveraged leases have been eliminated, although lessors can continue to account for existing leveraged leases using the current accounting guidance. Other limited changes were made to align lessor accounting with the lessee accounting model and the new revenue recognition standard. All entities must classify leases to determine how to recognize lease-related revenue and expense. Quantitative and qualitative disclosures are required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The intention is to require enough information to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities. ASU No. 2016-02 was effective for interim and annual reporting periods beginning after December 15, 2018. All entities were required to use a modified retrospective approach for leases that existed or were entered into after the beginning of the earliest comparative period in the financial statements. As the Company elected the transition option provided in ASU No. 2018-11 (see below), the modified retrospective approach was applied on January 1, 2019.

The Company also elected certain relief options offered in ASU 2016-02 including the package of practical expedients, the option not to separate lease and non-lease components and instead to account for them as a single lease component, and the option not to recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e., leases with terms of twelve months or less). We elected to apply certain practical adoption expedients provided under the updates whereby we did not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. The Company did not elect the hindsight practical expedient, which allows entities to use hindsight when determining lease term and impairment of right-of-use assets. The Company has several lease agreements, such as branch locations or office space, which are considered operating leases, and therefore, were not previously recognized on the Company’s consolidated balance sheet. The new guidance requires these lease agreements to be recognized on the consolidated balance sheet as a right-of-use asset and a corresponding lease liability. The new guidance did not have a material impact on the Company's consolidated statements of income or the consolidated statements of cash flows. See Note 8 Leases for more information.
 
In July 2018, the FASB issued ASU No. 2018-11, Leases - Targeted Improvements to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments had the same effective date as ASU 2016-02 (January 1, 2019 for the Company). The Company adopted ASU 2018-11 on its required effective date of January 1, 2019 and elected both transition options mentioned above.

As of January 1, 2019, the Company adopted ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The ASU expands the scope of Topic 718, Compensation-Stock Compensation (which previously only included payments to employees), to include share-based payment transactions for acquiring goods and services from non-employees. This required entities to apply the requirements of Topic 718 to non-employee awards, except for specific guidance on inputs to an option pricing model and the attribution of cost (i.e., the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). Additionally, the amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in the grantor’s own operations by issuing share-based payment awards, and clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer, or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

As of January 1, 2019, the Company adopted ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities. The ASU shortens the amortization period for certain callable debt securities held at a premium. The premium on individual callable debt securities shall be amortized to the earliest call date. This guidance does not apply to securities for which prepayments are estimated on a large number of similar loans where prepayments are probable and reasonably estimable. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

Recently Issued Not Yet Effective Accounting Pronouncements:

During interim periods, the Company follows the accounting policies set forth in its annual audited financial statements for the year ended December 31, 2018 as filed in its Annual Report on Form 10-K with the Securities and Exchange Commission ("SEC"). The following is a summary of recent authoritative pronouncements issued but not yet effective that could impact the accounting, reporting, and/or disclosure of financial information by the Company.

In March 2019, the FASB issued ASU 2019-01, Leases: Codification Improvements (“ASU 2019-01”). ASU 2019-01 provides clarifications to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing essential information about leasing transactions. Specifically, ASU 2019-01 (i) allows the fair value of the underlying asset reported by lessors that are not manufacturers or dealers to continue to be its cost and not fair value as measured under the fair value definition, (ii) allows for the cash flows received for sales-type and direct financing leases to continue to be presented as results from investing, and (iii) clarifies that entities do not have to disclose the effect of the lease standard on adoption year interim amounts. ASU 2019-01 will be effective for us on January 1, 2020 and should not have any material impact on our consolidated financial statements.

In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU changed the credit loss model on financial instruments measured at amortized cost, available for sale securities and certain purchased financial instruments. Credit losses on financial instruments measured at amortized cost will be determined using a current expected credit loss ("CECL") model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. Purchased financial assets with more-than-insignificant credit deterioration since origination ("PCD assets" which are currently named "PCI Loans") measured at amortized cost will have an allowance for credit losses established at acquisition as part of the purchase price. Subsequent increases or decreases to the allowance for credit losses on PCD assets will be recognized in the income statement. Interest income should be recognized on PCD assets based on the effective interest rate, determined excluding the discount attributed to credit losses at acquisition. Credit losses relating to available-for-sale debt securities will be recognized through an allowance for credit losses. The amount of the credit loss is limited to the amount by which fair value is below amortized cost of the available-for-sale debt security. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years for the Company and other SEC filers. Early adoption is permitted and if early adopted, all provisions must be adopted in the same period. The amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the period adopted. A prospective approach is required for securities with other than temporary impairment recognized prior to adoption. The Company is continuing its implementation efforts through its company-wide implementation team. The implementation team meets periodically to discuss the latest developments and ensure progress is being made. The team also keeps current on evolving interpretations and industry practices related to ASU 2016-13 via webcasts, publications, conferences, and peer bank meetings. The team continues to evaluate and validate data resources and different loss methodologies. The Company’s preliminary evaluation indicates the provisions of ASU No. 2016-13 are expected to impact the Company’s consolidated financial statements, in particular an increase to the level of the reserve for credit losses. However, the Company continues to evaluate the extent of the potential impact.

On October 16, 2019, the Financial Accounting Standards Board approved a delay for the implementation of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The Board decided that CECL will be effective for larger Public Business Entities ("PBEs") that are SEC filers, excluding Smaller Reporting Companies ("SRCs") as currently defined by the SEC, for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For calendar-year-end companies, this will be January 1, 2020.  The determination of whether an entity is an SRC will be based on an entity’s most recent assessment in accordance with SEC regulations and the Company meets the regulations as a SRC.  For all other entities, the Board decided that CECL will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For all entities, early adoption will continue to be permitted; that is, early adoption is allowed for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (that is, effective January 1, 2019, for calendar-year-end companies).  

Reclassifications:

Certain captions and amounts in the 2018 consolidated financial statements were reclassified to conform to the 2019 financial statement presentation. These reclassifications had no impact on net income or shareholders' equity as previously reported.
v3.19.3
Earnings Per Share
9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share

Basic earnings per common share represents net income divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common 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 (excluding tax impact). Potential common shares that may be issued by the Company relate solely to outstanding stock options, determined using the treasury stock method, and restricted stock awards, determined by the fair value of the Company's stock on date of grant.
 
The following is a summary of the basic and diluted earnings per share computation (dollars in thousands, except for share data):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Net income
$
5,963

 
$
4,324

 
$
19,815

 
$
11,670

 
 
 
 
 
 
 
 
Weighted average basic common shares outstanding
13,955,859

 
12,718,861

 
13,949,325

 
12,049,151

Effect of dilutive securities
97,573

 
98,695

 
89,089

 
94,687

Weighted average dilutive shares outstanding
14,053,432

 
12,817,556

 
14,038,414

 
12,143,838

 
 
 
 
 
 
 
 
Basic earnings per common share
$
0.43

 
$
0.34

 
$
1.42

 
$
0.97

Diluted earnings per common share
$
0.42

 
$
0.34

 
$
1.41

 
$
0.96



There were no antidilutive shares for the three and nine month periods ended September 30, 2019 and 2018.
v3.19.3
Securities
9 Months Ended
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Securities
Securities
 
The amortized cost, gross unrealized gains and losses and fair value of securities available-for-sale are summarized as follows (in thousands): 
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
September 30, 2019:
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprises (GSEs)
 
$
19,023

 
$
42

 
$
(47
)
 
$
19,018

Municipal securities
 
59,272

 
816

 
(7
)
 
60,081

Other debt securities
 
3,480

 
12

 
(47
)
 
3,445

Mortgage-backed securities (GSEs)
 
88,998

 
323

 
(358
)
 
88,963

 
 
$
170,773

 
$
1,193

 
$
(459
)
 
$
171,507

December 31, 2018:
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprises (GSEs)
 
$
44,117

 
$
12

 
$
(626
)
 
$
43,503

Municipal securities
 
55,248

 
276

 
(363
)
 
55,161

Other debt securities
 
977

 

 
(67
)
 
910

Mortgage-backed securities (GSEs)
 
103,875

 
153

 
(1,914
)
 
102,114

 
 
$
204,217

 
$
441

 
$
(2,970
)
 
$
201,688


 
At September 30, 2019 and December 31, 2018, securities with a carrying value totaling approximately $96.4 million and $103.7 million, respectively, were pledged to secure public funds and securities sold under agreements to repurchase.

For the three months ended September 30, 2019, there were no available-for-sale securities sold. For the nine months ended September 30, 2019, approximately $16.5 million available-for-sale securities were sold which resulted in approximately $35 thousand gross gains and $1 thousand losses realized. For the three months ended September 30, 2018, there were no available-for-sale securities sold. For the nine months ended September 30, 2018, there were approximately $25 million available-for-sale securities sold which resulted in $1 thousand losses realized. For the three and nine months ended September 30, 2019, there were approximately $5 million and $16 million available-for-sale securities redeemed, respectively. For the three months ended September 30, 2018, there were no available-for-sale securities redeemed. For the nine months ended September 30, 2018, a security was called for less than the amortized cost resulting in a realized loss of $1 thousand.

The amortized cost and estimated fair value of securities at September 30, 2019, by contractual maturity for non-mortgage backed securities are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 
 
Amortized
Cost
 
Fair
Value
Due in one year or less
 
$
3,293

 
$
3,283

Due from one year to five years
 
10,850

 
10,816

Due from five years to ten years
 
12,691

 
12,726

Due after ten years
 
54,941

 
55,719

 
 
81,775

 
82,544

Mortgage-backed securities
 
88,998

 
88,963

 
 
$
170,773

 
$
171,507



The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position (in thousands): 
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government- sponsored enterprises (GSEs)
 
$
2,999

 
$
(24
)
 
$
5,977

 
$
(23
)
 
$
8,976

 
$
(47
)
Municipal securities
 
970

 
(3
)
 
527

 
(4
)
 
1,497

 
(7
)
Other debt securities
 

 

 
933

 
(47
)
 
933

 
(47
)
Mortgage-backed securities (GSEs)
 
11,732

 
(80
)
 
25,969

 
(278
)
 
37,701

 
(358
)
 
 
$
15,701

 
$
(107
)
 
$
33,406

 
$
(352
)
 
$
49,107

 
$
(459
)
December 31, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government- sponsored enterprises (GSEs)
 
$
14,763

 
$
(237
)
 
$
13,728

 
$
(389
)
 
$
28,491

 
$
(626
)
Municipal securities
 
16,455

 
(150
)
 
4,767

 
(213
)
 
21,222

 
(363
)
Other debt securities
 

 

 
910

 
(67
)
 
910

 
(67
)
Mortgage-backed securities (GSEs)
 
10,516

 
(155
)
 
69,884

 
(1,759
)
 
80,400

 
(1,914
)
 
 
$
41,734

 
$
(542
)
 
$
89,289

 
$
(2,428
)
 
$
131,023

 
$
(2,970
)


At September 30, 2019, the categories of temporarily impaired securities in an unrealized loss position twelve months or greater are as follows (dollars in thousands):
 
 
Gross Unrealized Loss
 
Number of Securities
U.S. Government-sponsored enterprises (GSEs)
 
$
(23
)
 
2

Municipal securities
 
(4
)
 
1

Other debt securities
 
(47
)
 
1

Mortgage-backed securities (GSEs)
 
(278
)
 
36

 
 
$
(352
)
 
40



The Company reviews the securities portfolio on a quarterly basis to monitor its exposure to other-than-temporary impairment. A determination as to whether a security's decline in fair value is other-than-temporary takes into consideration numerous factors and the relative significance of any single factor can vary by security. Some factors the Company may consider in the other-than-temporary impairment analysis include the length of time and extent to which the security has been in an unrealized loss position, changes in security ratings, financial condition and near-term prospects of the issuer, as well as security and industry specific economic conditions.

Based on this evaluation, the Company concluded that any unrealized losses at September 30, 2019 represented a temporary impairment, as these unrealized losses are primarily attributable to changes in interest rates and current market conditions, and not credit deterioration of the issuers. As of September 30, 2019, the Company does not intend to sell any of the securities, does not expect to be required to sell any of the securities, and expects to recover the entire amortized cost of all of the securities.

The following is the amortized cost and carrying value of other investments (in thousands):
 
September 30,
 
December 31,
 
2019
 
2018
Federal Reserve Bank stock
$
7,917

 
$
7,010

Federal Home Loan Bank stock
4,646

 
4,139

First National Bankers Bank stock
350

 
350

 
$
12,913

 
$
11,499


Our restricted investments consist of non-marketable equity securities that have no readily determinable market value. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. As of September 30, 2019, the Company determined that there was no impairment on its other investment securities.
v3.19.3
Loans and Allowance for Loan Losses
9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Loans and Allowance for Loan Losses
Loans and Allowance for Loan Losses
 
Portfolio Segmentation:
 
Major categories of loans are summarized as follows (in thousands):
 
 
September 30, 2019
 
December 31, 2018
 
 
PCI Loans1
 
All Other
Loans
2
 
Total
 
PCI Loans1
 
All Other
Loans
2
 
Total
Commercial real estate
 
$
17,880

 
$
872,582

 
$
890,462

 
$
17,682

 
$
842,345

 
$
860,027

Consumer real estate
 
7,169

 
398,362

 
405,531

 
8,712

 
398,542

 
407,254

Construction and land development
 
4,629

 
215,122

 
219,751

 
4,602

 
183,293

 
187,895

Commercial and industrial
 
434

 
340,773

 
341,207

 
2,557

 
305,697

 
308,254

Consumer and other
 
359

 
10,437

 
10,796

 
605

 
13,204

 
13,809

  Total loans
 
30,471

 
1,837,276

 
1,867,747

 
34,158

 
1,743,081

 
1,777,239

Less:  Allowance for loan losses
 
(116
)
 
(9,676
)
 
(9,792
)
 

 
(8,275
)
 
(8,275
)
  Loans, net
 
$
30,355

 
$
1,827,600

 
$
1,857,955

 
$
34,158

 
$
1,734,806

 
$
1,768,964


1 Purchased Credit Impaired loans (“PCI loans”) are loans with evidence of credit deterioration at purchase.
2 Includes loans held for sale.

For purposes of the disclosures required pursuant to the adoption of ASC 310, the loan portfolio was disaggregated into segments. A portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. There are five loan portfolio segments that include commercial real estate, consumer real estate, construction and land development, commercial and industrial, and consumer and other.

The composition of loans by loan classification for impaired and performing loan status is summarized in the tables below (in thousands):
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Performing loans
 
$
872,325

 
$
397,217

 
$
214,422

 
$
340,322

 
$
10,437

 
$
1,834,723

Impaired loans
 
257

 
1,145

 
700

 
451

 

 
2,553

 
 
872,582

 
398,362

 
215,122

 
340,773

 
10,437

 
1,837,276

PCI loans
 
17,880

 
7,169

 
4,629

 
434

 
359

 
30,471

  Total loans
 
$
890,462

 
$
405,531

 
$
219,751

 
$
341,207

 
$
10,796

 
$
1,867,747

December 31, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Performing loans
 
$
841,709

 
$
397,306

 
$
182,746

 
$
304,673

 
$
13,088

 
$
1,739,522

Impaired loans
 
636

 
1,236

 
547

 
1,024

 
116

 
3,559

 
 
842,345

 
398,542

 
183,293

 
305,697

 
13,204

 
1,743,081

PCI loans
 
17,682

 
8,712

 
4,602

 
2,557

 
605

 
34,158

  Total loans
 
$
860,027

 
$
407,254

 
$
187,895

 
$
308,254

 
$
13,809

 
$
1,777,239
















The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans (in thousands):
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and
Other
 
Total
September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Performing loans
 
$
4,225

 
$
1,983

 
$
1,043

 
$
1,725

 
$
71

 
$
9,047

Impaired loans
 

 
206

 

 
423

 

 
629

 
 
4,225

 
2,189

 
1,043

 
2,148

 
71

 
9,676

PCI loans
 
35

 
81

 

 

 

 
116

  Total loans
 
$
4,260

 
$
2,270

 
$
1,043

 
$
2,148

 
$
71

 
$
9,792

December 31, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Performing loans
 
$
3,639

 
$
1,763

 
$
795

 
$
1,304

 
$
240

 
$
7,741

Impaired loans
 

 
26

 

 
442

 
66

 
534

 
 
3,639

 
1,789

 
795

 
1,746

 
306

 
8,275

PCI loans
 

 

 

 

 

 

  Total loans
 
$
3,639

 
$
1,789

 
$
795

 
$
1,746

 
$
306

 
$
8,275


 
The following tables detail the changes in the allowance for loan losses by loan classification (in thousands):
 
 
Commercial
Real Estate
 
Consumer
Real
Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Three Months Ended September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
4,102

 
$
2,189

 
$
946

 
$
1,746

 
$
114

 
$
9,097

Charged off loans
 
(36
)
 
(1
)
 

 
(20
)
 
(50
)
 
(107
)
Recoveries of charge-offs
 
39

 
17

 
3

 
12

 
7

 
78

Provision (reallocation) charged to expense
 
155

 
65

 
94

 
410

 

 
724

Ending balance
 
$
4,260

 
$
2,270

 
$
1,043

 
$
2,148

 
$
71

 
$
9,792

Three Months Ended September 30, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
3,135

 
$
1,528

 
$
744

 
$
1,367

 
$
300

 
$
7,074

Charged off loans
 

 
(2
)
 

 
(100
)
 
(156
)
 
(258
)
Recoveries of charge-offs
 

 
5

 
2

 
9

 
22

 
38

Provision (reallocation) charged to expense
 
110

 
67

 
(37
)
 
86

 
76

 
302

Ending balance
 
$
3,245

 
$
1,598

 
$
709

 
$
1,362

 
$
242

 
$
7,156



 
 
Commercial
Real Estate
 
Consumer
Real
Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Nine Months Ended September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
3,639

 
$
1,789

 
$
795

 
$
1,746

 
$
306

 
$
8,275

Charged off loans
 
(36
)
 
(3
)
 

 
(353
)
 
(260
)
 
(652
)
Recoveries of charge-offs
 
63

 
37

 
7

 
66

 
82

 
255

Provision (reallocation) charged to expense
 
594

 
447

 
241

 
689

 
(57
)
 
1,914

Ending balance
 
$
4,260

 
$
2,270

 
$
1,043

 
$
2,148

 
$
71

 
$
9,792

Nine Months Ended September 30, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
2,465

 
$
1,596

 
$
521

 
$
1,062

 
$
216

 
$
5,860

Charged off loans
 
(38
)
 
(27
)
 

 
(178
)
 
(257
)
 
(500
)
Recoveries of charge-offs
 

 
55

 
7

 
65

 
62

 
189

Provision (reallocation) charged to expense
 
818

 
(26
)
 
181

 
413

 
221

 
1,607

Ending balance
 
$
3,245

 
$
1,598

 
$
709

 
$
1,362

 
$
242

 
$
7,156



The following tables outline the amount of each loan classification and the amount categorized into each risk rating (in thousands):

 
 
September 30, 2019
Non PCI Loans:
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Pass
 
$
856,238

 
$
394,525

 
$
209,029

 
$
332,165

 
$
10,273

 
$
1,802,230

Watch
 
15,488

 
2,503

 
5,164

 
7,433

 
42

 
30,630

Special mention
 
489

 
9

 
155

 
612

 
1

 
1,266

Substandard
 
367

 
1,159

 
774

 
556

 
97

 
2,953

Doubtful
 

 
166

 

 
7

 
24

 
197

Total
 
$
872,582

 
$
398,362

 
$
215,122

 
$
340,773

 
$
10,437

 
$
1,837,276

PCI Loans:
 

 

 

 

 

 

Pass
 
$
13,760

 
$
4,969

 
$
516

 
$
53

 
$
325

 
$
19,623

Watch
 
2,497

 
383

 
4,113

 
1

 
15

 
7,009

Special mention
 
886

 
435

 

 

 
5

 
1,326

Substandard
 
737

 
1,382

 

 
380

 
14

 
2,513

Doubtful
 

 

 

 

 

 

Total
 
$
17,880

 
$
7,169

 
$
4,629

 
$
434

 
$
359

 
$
30,471

Total loans
 
$
890,462

 
$
405,531

 
$
219,751

 
$
341,207

 
$
10,796

 
$
1,867,747


 
 
December 31, 2018
Non PCI Loans:
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Pass
 
$
834,912

 
$
394,728

 
$
182,524

 
$
303,805

 
$
12,927

 
$
1,728,896

Watch
 
6,791

 
2,678

 
64

 
1,090

 
135

 
10,758

Special mention
 

 
14

 
158

 
137

 

 
309

Substandard
 
642

 
1,122

 
547

 
462

 
142

 
2,915

Doubtful
 

 

 

 
203

 

 
203

Total
 
$
842,345

 
$
398,542

 
$
183,293

 
$
305,697

 
$
13,204

 
$
1,743,081

PCI Loans:
 

 

 

 

 

 

Pass
 
$
14,050

 
$
5,617

 
$
4,033

 
$
2,382

 
$
541

 
$
26,623

Watch
 
1,805

 
756

 
569

 

 
17

 
3,147

Special mention
 
1,030

 
446

 

 
50

 
10

 
1,536

Substandard
 
797

 
1,893

 

 
125

 
37

 
2,852

Doubtful
 

 

 

 

 

 

Total
 
$
17,682

 
$
8,712

 
$
4,602

 
$
2,557

 
$
605

 
$
34,158

Total loans
 
$
860,027

 
$
407,254

 
$
187,895

 
$
308,254

 
$
13,809

 
$
1,777,239



Past Due Loans:
 
A loan is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan agreement. Generally, management places a loan on nonaccrual when there is a clear indicator that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due.
 
The following tables present an aging analysis of our loan portfolio (in thousands): 
 
 
September 30, 2019
 
 
30-60 Days
Past Due and
Accruing
 
61-89 Days
 Past Due and
Accruing
 
Past Due 90
Days or More
and Accruing
 
Nonaccrual
 
Total
Past Due
and Nonaccrual
 
PCI Loans
 
Current
Loans
 
Total
Loans
Commercial real estate
 
$
175

 
$

 
$

 
$
124

 
$
299

 
$
17,880

 
$
872,283

 
$
890,462

Consumer real estate
 
321

 
391

 
497

 
1,403

 
2,612

 
6,672

 
396,247

 
405,531

Construction and land development
 
271

 

 

 
621

 
892

 
4,629

 
214,230

 
219,751

Commercial and industrial
 
684

 
166

 
95

 
377

 
1,322

 
339

 
339,546

 
341,207

Consumer and other
 
184

 
77

 
16

 
39

 
316

 
343

 
10,137

 
10,796

Total
 
$
1,635

 
$
634

 
$
608

 
$
2,564

 
$
5,441

 
$
29,863

 
$
1,832,443

 
$
1,867,747


 
 
December 31, 2018
 
 
30-60 Days
Past Due and
Accruing
 
61-89 Days
Past Due and
Accruing
 
Past Due 90
Days or More
and Accruing
 
Nonaccrual
 
Total
Past Due
and Nonaccrual
 
PCI
Loans
 
Current
Loans
 
Total
Loans
Commercial real estate
 
$
377

 
$
19

 
$

 
$
272

 
$
668

 
$
17,682

 
$
841,677

 
$
860,027

Consumer real estate
 
1,168

 
462

 
454

 
844

 
2,928

 
8,712

 
395,614

 
407,254

Construction and land development
 
343

 

 

 
547

 
890

 
4,602

 
182,403

 
187,895

Commercial and industrial
 
155

 

 
101

 
909

 
1,165

 
2,557

 
304,532

 
308,254

Consumer and other
 
117

 

 
29

 
124

 
270

 
605

 
12,934

 
13,809

Total
 
$
2,160

 
$
481

 
$
584

 
$
2,696

 
$
5,921

 
$
34,158

 
$
1,737,160

 
$
1,777,239




Impaired Loans:

The following is an analysis of the impaired loan portfolio, including PCI loans, detailing the related allowance recorded (in thousands):  
 
 
September 30, 2019
 
December 31, 2018
 
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
Impaired loans without a valuation allowance:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial real estate
 
$
257

 
$
262

 
$

 
$
636

 
$
648

 
$

Consumer real estate
 
751

 
751

 

 
1,073

 
1,089

 

Construction and land development
 
700

 
700

 

 
547

 
547

 

Commercial and industrial
 

 

 

 
69

 
70

 

Consumer and other
 

 

 

 
29

 
33

 

 
 
1,708

 
1,713

 

 
2,354

 
2,387

 

Impaired loans with a valuation allowance:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial real estate
 

 

 

 

 

 

Consumer real estate
 
394

 
394

 
206

 
163

 
205

 
26

Construction and land development
 

 

 

 

 

 

Commercial and industrial
 
451

 
451

 
423

 
955

 
973

 
442

Consumer and other
 

 

 

 
87

 
87

 
66

 
 
845

 
845

 
629

 
1,205

 
1,265

 
534

PCI loans:
 
 
 
 
 
 
 
 
 
 
 
 
  Commercial real estate
 
2,516

 
2,834

 
35

 

 

 

Consumer real estate
 
1,206

 
1,261

 
81

 

 

 

 
 
3,722

 
4,095

 
116

 

 

 

Total impaired loans
 
$
6,275

 
$
6,653

 
$
745

 
$
3,559

 
$
3,652

 
$
534


 
 
Three Months Ended September 30,
 
 
2019
 
2018
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Impaired loans without a valuation allowance:
 
 

 
 

 
 

 
 

Commercial real estate
 
$
258

 
$
3

 
$
1,117

 
$
12

Consumer real estate
 
568

 
4

 
887

 
10

Construction and land development
 
701

 
3

 
547

 

Commercial and industrial
 

 

 
77

 
2

Consumer and other
 

 

 
16

 
1

 
 
1,527

 
10

 
2,644

 
25

Impaired loans with a valuation allowance:
 
 

 
 

 
 

 
 

Commercial real estate
 

 

 

 

Consumer real estate
 
396

 
4

 
290

 
2

Construction and land development
 

 

 

 

Commercial and industrial
 
352

 
1

 
393

 
5

Consumer and other
 

 

 
73

 
1

 
 
748

 
5

 
756

 
8

PCI loans:
 
 
 
 
 
 
 
 
Commercial real estate
 
2,520

 

 
29

 

Consumer real estate
 
1,151

 

 

 

 
 
3,671

 

 
29

 

Total impaired loans
 
$
5,946

 
$
15

 
$
3,429

 
$
33



 
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Impaired loans without a valuation allowance:
 
 

 
 

 
 

 
 

Commercial real estate
 
$
435

 
$
28

 
$
802

 
$
27

Consumer real estate
 
768

 
8

 
769

 
22

Construction and land development
 
637

 
5

 
547

 

Commercial and industrial
 
25

 
1

 
62

 
5

Consumer and other
 
14

 
1

 
8

 
1

 
 
1,879

 
43

 
2,188

 
55

Impaired loans with a valuation allowance:
 
 

 
 

 
 

 
 

Commercial real estate
 
12

 
1

 
6

 

Consumer real estate
 
248

 
6

 
576

 
13

Construction and land development
 
14

 

 

 

Commercial and industrial
 
498

 
10

 
280

 
10

Consumer and other
 
28

 

 
68

 
3

 
 
800

 
17

 
930

 
26

PCI loans:
 
 
 
 
 
 
 
 
Commercial real estate
 
1,894

 
(10
)
 
11

 
3

Consumer real estate
 
851

 
3

 

 

 
 
2,745

 
(7
)
 
11

 
3

Total impaired loans
 
$
5,424

 
$
53

 
$
3,129

 
$
84




Troubled Debt Restructurings:
 
At September 30, 2019 and December 31, 2018, impaired loans included loans that were classified as Troubled Debt Restructurings ("TDRs"). The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession.
 
In assessing whether or not a borrower is experiencing financial difficulties, the Company considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (i) the debtor is currently in payment default on any of its debt; (ii) a payment default is probable in the foreseeable future without the modification; (iii) the debtor has declared or is in the process of declaring bankruptcy; and (iv) the debtor's projected cash flow is sufficient to satisfy contractual payments due under the original terms of the loan without a modification.
 
The Company considers all aspects of the modification to loan terms to determine whether or not a concession has been granted to the borrower. Key factors considered by the Company include the debtor's ability to access funds at a market rate for debt with similar risk characteristics, the significance of the modification relative to unpaid principal balance or collateral value of the debt, and the significance of a delay in the timing of payments relative to the original contractual terms of the loan.
 
The most common concessions granted by the Company generally include one or more modifications to the terms of the debt, such as (i) a reduction in the interest rate for the remaining life of the debt; (ii) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk; (iii) a temporary period of interest-only payments; and (iv) a reduction in the contractual payment amount for either a short period or remaining term of the loan. As of September 30, 2019 and December 31, 2018, management had approximately $61 thousand and $116 thousand, respectively, in loans that met the criteria for restructured, none of which were on nonaccrual.

There were no loans that were modified as TDRs during the nine month period ended September 30, 2019. There was one commercial real estate loan for approximately $622 thousand and one consumer real estate loan for approximately $34 thousand modified as TDRs during the nine month period ended September 30, 2018.

There were no loans that were modified as troubled debt restructurings during the past nine months and for which there was a subsequent payment default.

Foreclosure Proceedings and Balances:

As of September 30, 2019, there was no residential real estate included in other real estate owned and there were no consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure.

Purchased Credit Impaired Loans:
 
The Company has acquired loans where there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans are as follows (in thousands):

 
September 30,
 
December 31,
 
2019
 
2018
Commercial real estate
$
24,651

 
$
24,849

Consumer real estate
9,127

 
11,108

Construction and land development
2,697

 
5,731

Commercial and industrial
5,633

 
5,824

Consumer and other
556

 
892

  Total loans
42,664

 
48,404

Less: Remaining purchase discount
(12,193
)
 
(14,246
)
  Total loans, net of purchase discount
30,471

 
34,158

Less: Allowance for loan losses
(116
)
 

  Carrying amount, net of allowance
$
30,355

 
$
34,158



Activity related to the accretable yield on loans acquired with deteriorated credit quality is as follows (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
Accretable yield, beginning of period
$
8,280

 
$
7,206

 
$
7,052

 
$
9,287

Additions

 

 

 
1,292

Accretion income
(1,073
)
 
(746
)
 
(3,353
)
 
(3,776
)
Reclassification
1,033

 
2,516

 
2,392

 
2,898

Other changes, net
390

 
243

 
2,539

 
(482
)
Accretable yield, end of period
$
8,630

 
$
9,219

 
$
8,630

 
$
9,219

v3.19.3
Commitments and Contingent Liabilities
9 Months Ended
Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingent Liabilities
Commitments and Contingent Liabilities
 
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing and depository needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amount recognized on the balance sheet. The majority of all commitments to extend credit are variable rate instruments while the standby letters of credit are primarily fixed rate instruments. The Company's exposure to credit loss is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments.

A summary of the Company’s total contractual amount for all off-balance sheet commitments are as follows (in thousands):
 
September 30,
 
December 31,
 
2019
 
2018
Commitments to extend credit
$
383,315

 
$
333,900

Standby letters of credit
8,021

 
12,200



Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established
in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate, and income-producing commercial properties.

Standby letters of credit issued by the Company are conditional commitments to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Collateral held varies and is required in instances which the Company deems necessary. At September 30, 2019 and December 31, 2018, the carrying amount of liabilities related to the Company's obligation to perform under standby letters of credit was insignificant.

The Company is subject in the normal course of business to various pending and threatened legal proceedings in which claims for monetary damages are asserted. Management, after consultation with legal counsel, does not anticipate that the aggregate ultimate liability arising out of litigation pending or threatened against the Company will be material to the Company's consolidated financial position. On an on-going basis the Company assesses any potential liabilities or contingencies in connection with such legal proceedings. For those matters where it is deemed probable that the Company will incur losses and the amount of the losses can be reasonably estimated, the Company would record an expense and corresponding liability in its consolidated financial statements.
v3.19.3
Fair Value Disclosures
9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Disclosures
Fair Value Disclosures
 
Determination of Fair Value:
 
The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurements and Disclosures” ASC Topic 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. 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 Topic 820 provides a consistent definition of fair value, which focuses on exit price in an orderly transaction between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact business at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions.

In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.
 
Level 1 - Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.
 
Level 2 - Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.
 
Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using
pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation.
 
A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.



















The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis are as follows (in thousands): 
Description
 
Fair Value
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
September 30, 2019:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Securities available-for-sale:
 
 

 
 

 
 

 
 

U.S. Government-sponsored enterprises (GSEs)
 
$
19,018

 
$

 
$
19,018

 
$

Municipal securities
 
60,081

 

 
60,081

 

Other debt securities
 
3,445

 

 
3,445

 

Mortgage-backed securities (GSEs)
 
88,963

 

 
88,963

 

Total securities available-for-sale
 
$
171,507

 
$

 
$
171,507

 
$

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Derivative financial instruments
 
$
4,456

 
$

 
$
4,456

 
$


December 31, 2018:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Securities available-for-sale:
 
 

 
 

 
 

 
 

U.S. Government-sponsored enterprises (GSEs)
 
$
43,503

 
$

 
$
43,503

 
$

Municipal securities
 
55,161

 

 
55,161

 

Other debt securities
 
910

 

 
910

 

Mortgage-backed securities (GSEs)
 
102,114

 

 
102,114

 

Total securities available-for-sale
 
$
201,688

 
$

 
$
201,688

 
$

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Derivative financial instruments
 
$
1,174

 

 
$
1,174

 



In the periods presented, there were no transfers between Level 1 and Level 2 in the fair value hierarchy.

Assets Measured at Fair Value on a Nonrecurring Basis:
 
Under certain circumstances management makes adjustments to fair value for assets and liabilities although they are not measured at fair value on an ongoing basis. The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands):
 
 
 
Fair Value
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Other Unobservable Inputs (Level 3)
September 30, 2019:
 
 
 
 
 
 
 
 
Impaired loans
 
$
3,822

 
$

 
$

 
$
3,822

Other real estate owned
 
1,561

 

 

 
1,561

 
 
 
 
 
 
 
 
 
December 31, 2018:
 
 
 
 
 
 
 
 
Impaired loans
 
$
671

 
$

 
$

 
$
671

Other real estate owned
 
2,495

 

 

 
2,495



For Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements are presented below (in thousands).

 
 
Fair Value
 
Valuation
Technique
 
Significant Other
Unobservable Input
 
Weighted
Average of Input
September 30, 2019:
 
 
 
 
 
 
 
 
Impaired loans
 
$
3,822

 
Appraisal and cashflow
 
Appraisal and cashflow discounts
 
16
%
Other real estate owned
 
1,561

 
Appraisal
 
Appraisal discounts
 
8
%
 
 
 
 
 
 
 
 
 
December 31, 2018:
 
 
 
 
 
 
 
 
Impaired loans
 
$
671

 
Appraisal
 
Appraisal Discounts
 
44
%
Other real estate owned
 
2,495

 
Appraisal
 
Appraisal Discounts
 
23
%


Impaired Loans: Loans considered impaired under ASC 310-10-35, Receivables, are loans for which, based on current information and events, it is probable that the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. An impaired loan can be measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. The fair value of impaired loans was measured based on the value of the collateral securing these loans or the discounted cash flows of the loans, as applicable. Impaired loans are classified within Level 3 of the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory, and/or accounts receivable. The Company determines the value of the collateral based on independent appraisals performed by qualified licensed appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Appraised values are discounted for costs to sell and may be discounted further based on management’s historical knowledge, changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts by management are subjective and are typically significant unobservable inputs for determining fair value. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors discussed above.

Other real estate owned: Other real estate owned, consisting of properties obtained through foreclosure or in satisfaction of loans, are initially recorded at fair value less estimated costs to sell upon transfer of the loans to other real estate. Subsequently, other real estate is carried at the lower of carrying value or fair value less costs to sell. Fair values are generally based on third party appraisals of the property and are classified within Level 3 of the fair value hierarchy. The appraisals are sometimes further discounted based on management’s historical knowledge, and/or changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts are typically significant unobservable inputs for determining fair value. In cases where the carrying amount exceeds the fair value, less estimated costs to sell, a loss is recognized in noninterest expense.


















Carrying value and estimated fair value:

The carrying amount and estimated fair value of the Company’s financial instruments are as follows (in thousands):
 
 
 
 
Fair Value Measurements Using
 
 
 
 
Carrying
Amount
 
Level 1
 
Level 2
 
Level 3
 
Estimated
Fair Value
September 30, 2019:
 
 
 
 
 
 
 
 
 
 
Assets:
 
 

 
 
 
 
 
 
 
 

Cash and cash equivalents
 
$
170,934

 
$
170,934

 
$

 
$

 
$
170,934

Securities available-for-sale
 
171,507

 

 
171,507

 

 
171,507

Other investments
 
12,913

 
N/A

 
N/A

 
N/A

 
N/A

Loans, net
 
1,857,955

 

 

 
1,849,197

 
1,849,197

Liabilities:
 
 

 
 
 
 
 
 
 
 

Noninterest-bearing demand deposits
 
365,024

 

 
365,024

 

 
365,024

Interest-bearing demand deposits
 
351,474

 

 
351,474

 

 
351,474

Money market and savings deposits
 
634,934

 

 
634,934

 

 
634,934

Time deposits
 
646,641

 

 
647,780

 

 
647,780

Securities sold under agreements to repurchase
 
4,368

 

 
4,368

 

 
4,368

Federal Home Loan Bank advances and other borrowings
 
25,460

 

 
25,460

 

 
25,460

Subordinated debt
 
39,240

 

 

 
37,379


37,379

Derivative financial instruments
 
4,456

 

 
4,456

 

 
4,456



December 31, 2018:
 
 
 
 
 
 
 
 
 
 
Assets:
 
 

 
 
 
 
 
 
 
 

Cash and cash equivalents
 
$
115,822

 
$
115,822

 
$

 
$

 
$
115,822

Securities available-for-sale
 
201,688

 

 
201,688

 

 
201,688

Other investments
 
11,499

 
N/A

 
N/A

 
N/A

 
N/A

Loans, net
 
1,768,964

 

 

 
1,766,838

 
1,766,838

Liabilities:
 
 

 
 
 
 
 
 
 
 

Noninterest-bearing demand deposits
 
319,861

 

 
319,861

 

 
319,861

Interest-bearing demand deposits
 
311,482

 

 
311,482

 

 
311,482

Money market and savings deposits
 
641,945

 

 
641,945

 

 
641,945

Time deposits
 
648,676

 

 
649,169

 

 
649,169

Securities sold under agreements to repurchase
 
11,756

 

 
11,756

 

 
11,756

Federal Home Loan Bank advances and other borrowings
 
11,243

 

 
11,243

 

 
11,243

Subordinated debt
 
39,177

 

 

 
39,190

 
39,190

Derivative financial instruments
 
1,174

 

 
1,174

 

 
1,174



Limitations:
 
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition,
the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.
v3.19.3
Derivatives
9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives
Derivatives

Financial derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative net investment hedge instrument as well as the offsetting gain or loss on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. The gain or loss on the derivative instrument is presented on the same income statement line item as the earnings effect of the hedged item. The Company utilizes interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of fixed rate tax-exempt callable securities available-for-sale. The hedging strategy on securities converts the fixed interest rates to LIBOR-based variable interest rates. These derivatives are designated as partial term hedges of selected cash flows covering specified periods of time prior to the call dates of the hedged securities. The Company has elected early adoption of ASU 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities, which allows such partial term hedge designations.

A summary of the Company's fair value hedge relationships for the periods presented are as follows (in thousands):
 
 
 
 
 
 
 
 
 
 
 
Liability derivatives
 
Balance Sheet Location
 
Weighted Average Remaining Maturity (In Years)
 
Weighted Average Pay Rate
 
Receive Rate
 
Notional Amount
 
Estimated Fair Value
September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap agreements - securities
 
Other liabilities
 
8.45
 
3.09%
 
3 month LIBOR
 
$
36,000

 
$
(4,456
)
December 31, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap agreements - securities
 
Other liabilities
 
9.23
 
3.10%
 
3 month LIBOR
 
$
35,000

 
$
(1,174
)


The effects of the Company's fair value hedge relationships reported in interest income on tax-exempt available-for-sale securities
on the consolidated income statement were as follows (in thousands):
 
 
 Three Months Ended September 30,
 
 Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
Interest income on tax-exempt securities
 
$
400

 
$
247

 
$
1,305

 
$
247

Effects of fair value hedge relationships
 
(62
)
 
(7
)
 
(132
)
 
(7
)
   Reported interest income on tax-exempt securities
 
$
338

 
$
240

 
$
1,173

 
$
240

 
 
 
 
 
 
 
 
 
 
 
 Three Months Ended September 30,
 
Nine Months Ended September 30,
Gain (loss) on fair value hedging relationship
 
2019
 
2018
 
2019
 
2018
Interest rate swap agreements - securities:
 
 
 
 
 
 
 
 
    Hedged items
 
$
1,045

 
7

 
$
3,282

 
7

    Derivative designated as hedging instruments
 
(1,045
)
 
(7
)
 
(3,282
)
 
(7
)

The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges (in thousands):
Line item on the balance sheet
 
Carrying Amount of the Hedged Assets
 
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets
September 30, 2019:
 
 
 
 
Securities available-for-sale
 
$
43,808

 
$
4,456

December 31, 2018:
 
 
 
 
Securities available-for-sale
 
$
39,730

 
$
1,174

v3.19.3
Leases
9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Leases
Leases

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 and all subsequent ASUs that modified this topic (collectively referred to as "Topic 842"). For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee.

Substantially all of the leases in which the Company is the lessee are comprised of real estate for branches and office space with terms extending through 2033. All of our leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheet. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated balance sheet as a right-of-use (“ROU”) asset and a corresponding lease liability.

The following table represents the consolidated balance sheet classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated balance sheet (dollars in thousands):
 
 
 
September 30,
 
Classification
 
2019
Assets:
 
 
 
  Operating lease right-of-use assets
Other assets
 
$
2,134

Liabilities:
 
 
 
  Operating lease liabilities
Other liabilities
 
$
2,150



The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019 was used.

As of September 30, 2019, the weighted average remaining lease term was 7.47 years and the weighted average discount rate was 3.24%.
 
The following table represents lease costs and other lease information, in thousands. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance (in thousands).
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2019
Lease costs:
 
 
 
 
  Operating lease costs
 
$
149

 
$
464

  Short-term lease costs
 
2

 
13

  Variable lease costs
 
23

 
69

    Total
 
$
174

 
$
546

Other information:
 
 
 
 
Cash paid for amounts included in the measurement of lease liabilities:
 
 
  Operating cash flows from operating leases
 
$
145

 
$
447











Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2019 were as follows (in thousands):
 
Amounts
September 30, 2020
$
521

September 30, 2021
487

September 30, 2022
250

September 30, 2023
140

September 30, 2024
67

Thereafter
685

Total future minimum lease payments
2,150

Amounts representing interest
(311
)
Present value of net future minimum lease payments
$
1,839

v3.19.3
Subsequent Events
9 Months Ended
Sep. 30, 2019
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events

On October 29, 2019, the Company entered into an Agreement and Plan of Merger (the"Merger Agreement") with Progressive Financial Group Inc., a Tennessee corporation (“PFG”). The Merger Agreement provides that, upon the terms and subject to the conditions set forth therein, PFG will merge with and into the Company, with the Company continuing as the surviving entity (the "Merger"). Following the Merger, Progressive Savings Bank, a Tennessee state-chartered banking association and wholly-owned subsidiary of PFG, will merge with and into SmartBank, the Company's banking subsidiary, with SmartBank continuing as the surviving bank.

Subject to the terms, conditions and adjustments set forth in the Merger Agreement, at the effective time of the Merger, PFG shareholders will have the right to receive their pro rata share of an aggregate of $14,595,354.37 in cash and 1,292,592.556 shares of SmartFinancial common stock, $1.00 par value (collectively, the “Merger Consideration”), provided, however, that the cash portion of the Merger Consideration is subject to adjustment as described in the Merger Agreement.  Based on the outstanding shares of PFG common stock as of the date hereof, it is expected that each share of PFG common stock will represent the right to receive approximately $704.375 in cash and 62.3808 shares of SmartFinancial common stock.

The Merger Agreement contains customary representations, warranties, and covenants of both SmartFinancial and PFG. The completion of the Merger is subject to approval of PFG shareholders, regulatory approvals, and other customary closing conditions, and is expected to be completed in the first half of 2020.

On November 6, 2019, the Company announced that its board of directors has approved the initiation of a regular quarterly dividend and the Company declared a quarterly cash dividend of $0.05 per share of the Company common stock payable on December 6, 2019, to shareholders of record as of the close of business on November 21, 2019.
v3.19.3
Presentation of Financial Information (Policies)
9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Business
Nature of Business:

SmartFinancial, Inc. (the "Company") is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, SmartBank (the "Bank"). The Company provides a variety of financial services to individuals and corporate customers through its offices in Tennessee, Alabama, Florida, and Georgia. The Bank's primary deposit products are noninterest-bearing and interest-bearing demand deposits, savings and money market deposits, and time deposits. Its primary lending products are commercial, residential, and consumer loans.
Basis of Presentation and Accounting Estimates
Basis of Presentation and Accounting Estimates:

The consolidated financial information in this report for September 30, 2019 and September 30, 2018 has not been audited by an independent registered public accounting firm. The consolidated financial statements presented herein conform to U.S. generally accepted accounting principles ("GAAP") and to general industry practices. In the opinion of the Company’s management, the accompanying interim financial statements contain all material adjustments necessary to present fairly the Company's financial condition, the results of operations, and cash flows for the interim period. Results for interim periods are not necessarily indicative of the results to be expected for a full year. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. In preparing the consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet, and 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 relate to the determination of the allowance for loan losses, the valuation of foreclosed assets and deferred taxes, other than temporary impairments of securities, the fair value of financial instruments, goodwill, and the fair value of assets acquired and liabilities assumed in acquisitions.
Recently Issued and Adopted Accounting Pronouncements; Recently Issued Not Yet Effective Accounting Pronouncements
Recently Issued and Adopted Accounting Pronouncements:

As of January 1, 2019, the Company adopted certain accounting standard updates related to accounting for leases (Topic 842 - Leases), primarily Accounting Standards Update ASU 2016-02 and subsequent updates. Among other things, these updates require lessees to recognize a lease liability, measured on a discounted basis, related to the lessee's obligation to make lease payments arising under a lease contract; and a right-of-use asset related to the lessee's right to use, or control the use of, a specified asset for the lease term. The updates did not significantly change lease accounting requirements applicable to lessors and did not significantly impact the Company's consolidated financial statements in relation to contracts whereby the Company acts as a lessor. The Company adopted the updates using a modified-retrospective transition approach and recognized right-of-use lease assets and related lease liabilities as of January 1, 2019. See Note 8 Leases for more information.

In February 2016, the FASB issued ASU No. 2016-02, Leases. Under the new guidance, lessees are required to recognize the following for all leases (with the exception of short-term leases): 1) a lease liability, which is the present value of a lessee’s obligation to make lease payments, and 2) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessor accounting under the new guidance remains largely unchanged as it is substantially equivalent to existing guidance for sales-type leases, direct financing leases, and operating leases. Leveraged leases have been eliminated, although lessors can continue to account for existing leveraged leases using the current accounting guidance. Other limited changes were made to align lessor accounting with the lessee accounting model and the new revenue recognition standard. All entities must classify leases to determine how to recognize lease-related revenue and expense. Quantitative and qualitative disclosures are required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The intention is to require enough information to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities. ASU No. 2016-02 was effective for interim and annual reporting periods beginning after December 15, 2018. All entities were required to use a modified retrospective approach for leases that existed or were entered into after the beginning of the earliest comparative period in the financial statements. As the Company elected the transition option provided in ASU No. 2018-11 (see below), the modified retrospective approach was applied on January 1, 2019.

The Company also elected certain relief options offered in ASU 2016-02 including the package of practical expedients, the option not to separate lease and non-lease components and instead to account for them as a single lease component, and the option not to recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e., leases with terms of twelve months or less). We elected to apply certain practical adoption expedients provided under the updates whereby we did not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. The Company did not elect the hindsight practical expedient, which allows entities to use hindsight when determining lease term and impairment of right-of-use assets. The Company has several lease agreements, such as branch locations or office space, which are considered operating leases, and therefore, were not previously recognized on the Company’s consolidated balance sheet. The new guidance requires these lease agreements to be recognized on the consolidated balance sheet as a right-of-use asset and a corresponding lease liability. The new guidance did not have a material impact on the Company's consolidated statements of income or the consolidated statements of cash flows. See Note 8 Leases for more information.
 
In July 2018, the FASB issued ASU No. 2018-11, Leases - Targeted Improvements to provide entities with relief from the costs of implementing certain aspects of the new leasing standard, ASU No. 2016-02. Specifically, under the amendments in ASU 2018-11: (1) entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. The amendments had the same effective date as ASU 2016-02 (January 1, 2019 for the Company). The Company adopted ASU 2018-11 on its required effective date of January 1, 2019 and elected both transition options mentioned above.

As of January 1, 2019, the Company adopted ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The ASU expands the scope of Topic 718, Compensation-Stock Compensation (which previously only included payments to employees), to include share-based payment transactions for acquiring goods and services from non-employees. This required entities to apply the requirements of Topic 718 to non-employee awards, except for specific guidance on inputs to an option pricing model and the attribution of cost (i.e., the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). Additionally, the amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in the grantor’s own operations by issuing share-based payment awards, and clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer, or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

As of January 1, 2019, the Company adopted ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Topic 310-20): Premium Amortization on Purchased Callable Debt Securities. The ASU shortens the amortization period for certain callable debt securities held at a premium. The premium on individual callable debt securities shall be amortized to the earliest call date. This guidance does not apply to securities for which prepayments are estimated on a large number of similar loans where prepayments are probable and reasonably estimable. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements.

Recently Issued Not Yet Effective Accounting Pronouncements:

During interim periods, the Company follows the accounting policies set forth in its annual audited financial statements for the year ended December 31, 2018 as filed in its Annual Report on Form 10-K with the Securities and Exchange Commission ("SEC"). The following is a summary of recent authoritative pronouncements issued but not yet effective that could impact the accounting, reporting, and/or disclosure of financial information by the Company.

In March 2019, the FASB issued ASU 2019-01, Leases: Codification Improvements (“ASU 2019-01”). ASU 2019-01 provides clarifications to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing essential information about leasing transactions. Specifically, ASU 2019-01 (i) allows the fair value of the underlying asset reported by lessors that are not manufacturers or dealers to continue to be its cost and not fair value as measured under the fair value definition, (ii) allows for the cash flows received for sales-type and direct financing leases to continue to be presented as results from investing, and (iii) clarifies that entities do not have to disclose the effect of the lease standard on adoption year interim amounts. ASU 2019-01 will be effective for us on January 1, 2020 and should not have any material impact on our consolidated financial statements.

In June 2016, FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU changed the credit loss model on financial instruments measured at amortized cost, available for sale securities and certain purchased financial instruments. Credit losses on financial instruments measured at amortized cost will be determined using a current expected credit loss ("CECL") model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions, and reasonable supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. Purchased financial assets with more-than-insignificant credit deterioration since origination ("PCD assets" which are currently named "PCI Loans") measured at amortized cost will have an allowance for credit losses established at acquisition as part of the purchase price. Subsequent increases or decreases to the allowance for credit losses on PCD assets will be recognized in the income statement. Interest income should be recognized on PCD assets based on the effective interest rate, determined excluding the discount attributed to credit losses at acquisition. Credit losses relating to available-for-sale debt securities will be recognized through an allowance for credit losses. The amount of the credit loss is limited to the amount by which fair value is below amortized cost of the available-for-sale debt security. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years for the Company and other SEC filers. Early adoption is permitted and if early adopted, all provisions must be adopted in the same period. The amendments should be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the period adopted. A prospective approach is required for securities with other than temporary impairment recognized prior to adoption. The Company is continuing its implementation efforts through its company-wide implementation team. The implementation team meets periodically to discuss the latest developments and ensure progress is being made. The team also keeps current on evolving interpretations and industry practices related to ASU 2016-13 via webcasts, publications, conferences, and peer bank meetings. The team continues to evaluate and validate data resources and different loss methodologies. The Company’s preliminary evaluation indicates the provisions of ASU No. 2016-13 are expected to impact the Company’s consolidated financial statements, in particular an increase to the level of the reserve for credit losses. However, the Company continues to evaluate the extent of the potential impact.

On October 16, 2019, the Financial Accounting Standards Board approved a delay for the implementation of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The Board decided that CECL will be effective for larger Public Business Entities ("PBEs") that are SEC filers, excluding Smaller Reporting Companies ("SRCs") as currently defined by the SEC, for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. For calendar-year-end companies, this will be January 1, 2020.  The determination of whether an entity is an SRC will be based on an entity’s most recent assessment in accordance with SEC regulations and the Company meets the regulations as a SRC.  For all other entities, the Board decided that CECL will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For all entities, early adoption will continue to be permitted; that is, early adoption is allowed for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (that is, effective January 1, 2019, for calendar-year-end companies).  

Reclassifications
Reclassifications:

Certain captions and amounts in the 2018 consolidated financial statements were reclassified to conform to the 2019 financial statement presentation. These reclassifications had no impact on net income or shareholders' equity as previously reported.
Earnings Per Common Share
Basic earnings per common share represents net income divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common 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 (excluding tax impact). Potential common shares that may be issued by the Company relate solely to outstanding stock options, determined using the treasury stock method, and restricted stock awards, determined by the fair value of the Company's stock on date of grant.
v3.19.3
Earnings Per Share (Tables)
9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following is a summary of the basic and diluted earnings per share computation (dollars in thousands, except for share data):
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
Net income
$
5,963

 
$
4,324

 
$
19,815

 
$
11,670

 
 
 
 
 
 
 
 
Weighted average basic common shares outstanding
13,955,859

 
12,718,861

 
13,949,325

 
12,049,151

Effect of dilutive securities
97,573

 
98,695

 
89,089

 
94,687

Weighted average dilutive shares outstanding
14,053,432

 
12,817,556

 
14,038,414

 
12,143,838

 
 
 
 
 
 
 
 
Basic earnings per common share
$
0.43

 
$
0.34

 
$
1.42

 
$
0.97

Diluted earnings per common share
$
0.42

 
$
0.34

 
$
1.41

 
$
0.96

v3.19.3
Securities (Tables)
9 Months Ended
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Schedule of Available-For-Sale Securities Reconciliation
The amortized cost, gross unrealized gains and losses and fair value of securities available-for-sale are summarized as follows (in thousands): 
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
September 30, 2019:
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprises (GSEs)
 
$
19,023

 
$
42

 
$
(47
)
 
$
19,018

Municipal securities
 
59,272

 
816

 
(7
)
 
60,081

Other debt securities
 
3,480

 
12

 
(47
)
 
3,445

Mortgage-backed securities (GSEs)
 
88,998

 
323

 
(358
)
 
88,963

 
 
$
170,773

 
$
1,193

 
$
(459
)
 
$
171,507

December 31, 2018:
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprises (GSEs)
 
$
44,117

 
$
12

 
$
(626
)
 
$
43,503

Municipal securities
 
55,248

 
276

 
(363
)
 
55,161

Other debt securities
 
977

 

 
(67
)
 
910

Mortgage-backed securities (GSEs)
 
103,875

 
153

 
(1,914
)
 
102,114

 
 
$
204,217

 
$
441

 
$
(2,970
)
 
$
201,688

Investments Classified by Contractual Maturity Date
The amortized cost and estimated fair value of securities at September 30, 2019, by contractual maturity for non-mortgage backed securities are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

 
 
Amortized
Cost
 
Fair
Value
Due in one year or less
 
$
3,293

 
$
3,283

Due from one year to five years
 
10,850

 
10,816

Due from five years to ten years
 
12,691

 
12,726

Due after ten years
 
54,941

 
55,719

 
 
81,775

 
82,544

Mortgage-backed securities
 
88,998

 
88,963

 
 
$
170,773

 
$
171,507

Schedule of Unrealized Loss on Investments
The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position (in thousands): 
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government- sponsored enterprises (GSEs)
 
$
2,999

 
$
(24
)
 
$
5,977

 
$
(23
)
 
$
8,976

 
$
(47
)
Municipal securities
 
970

 
(3
)
 
527

 
(4
)
 
1,497

 
(7
)
Other debt securities
 

 

 
933

 
(47
)
 
933

 
(47
)
Mortgage-backed securities (GSEs)
 
11,732

 
(80
)
 
25,969

 
(278
)
 
37,701

 
(358
)
 
 
$
15,701

 
$
(107
)
 
$
33,406

 
$
(352
)
 
$
49,107

 
$
(459
)
December 31, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government- sponsored enterprises (GSEs)
 
$
14,763

 
$
(237
)
 
$
13,728

 
$
(389
)
 
$
28,491

 
$
(626
)
Municipal securities
 
16,455

 
(150
)
 
4,767

 
(213
)
 
21,222

 
(363
)
Other debt securities
 

 

 
910

 
(67
)
 
910

 
(67
)
Mortgage-backed securities (GSEs)
 
10,516

 
(155
)
 
69,884

 
(1,759
)
 
80,400

 
(1,914
)
 
 
$
41,734

 
$
(542
)
 
$
89,289

 
$
(2,428
)
 
$
131,023

 
$
(2,970
)
Schedule of Temporarily Impaired Securities
At September 30, 2019, the categories of temporarily impaired securities in an unrealized loss position twelve months or greater are as follows (dollars in thousands):
 
 
Gross Unrealized Loss
 
Number of Securities
U.S. Government-sponsored enterprises (GSEs)
 
$
(23
)
 
2

Municipal securities
 
(4
)
 
1

Other debt securities
 
(47
)
 
1

Mortgage-backed securities (GSEs)
 
(278
)
 
36

 
 
$
(352
)
 
40

Schedule of Other Investments
The following is the amortized cost and carrying value of other investments (in thousands):
 
September 30,
 
December 31,
 
2019
 
2018
Federal Reserve Bank stock
$
7,917

 
$
7,010

Federal Home Loan Bank stock
4,646

 
4,139

First National Bankers Bank stock
350

 
350

 
$
12,913

 
$
11,499

v3.19.3
Loans and Allowance for Loan Losses (Tables)
9 Months Ended
Sep. 30, 2019
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Major categories of loans are summarized as follows (in thousands):
 
 
September 30, 2019
 
December 31, 2018
 
 
PCI Loans1
 
All Other
Loans
2
 
Total
 
PCI Loans1
 
All Other
Loans
2
 
Total
Commercial real estate
 
$
17,880

 
$
872,582

 
$
890,462

 
$
17,682

 
$
842,345

 
$
860,027

Consumer real estate
 
7,169

 
398,362

 
405,531

 
8,712

 
398,542

 
407,254

Construction and land development
 
4,629

 
215,122

 
219,751

 
4,602

 
183,293

 
187,895

Commercial and industrial
 
434

 
340,773

 
341,207

 
2,557

 
305,697

 
308,254

Consumer and other
 
359

 
10,437

 
10,796

 
605

 
13,204

 
13,809

  Total loans
 
30,471

 
1,837,276

 
1,867,747

 
34,158

 
1,743,081

 
1,777,239

Less:  Allowance for loan losses
 
(116
)
 
(9,676
)
 
(9,792
)
 

 
(8,275
)
 
(8,275
)
  Loans, net
 
$
30,355

 
$
1,827,600

 
$
1,857,955

 
$
34,158

 
$
1,734,806

 
$
1,768,964


1 Purchased Credit Impaired loans (“PCI loans”) are loans with evidence of credit deterioration at purchase.
2 Includes loans held for sale.
Schedule of Impaired and Performing Loans Receivable
The composition of loans by loan classification for impaired and performing loan status is summarized in the tables below (in thousands):
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Performing loans
 
$
872,325

 
$
397,217

 
$
214,422

 
$
340,322

 
$
10,437

 
$
1,834,723

Impaired loans
 
257

 
1,145

 
700

 
451

 

 
2,553

 
 
872,582

 
398,362

 
215,122

 
340,773

 
10,437

 
1,837,276

PCI loans
 
17,880

 
7,169

 
4,629

 
434

 
359

 
30,471

  Total loans
 
$
890,462

 
$
405,531

 
$
219,751

 
$
341,207

 
$
10,796

 
$
1,867,747

December 31, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Performing loans
 
$
841,709

 
$
397,306

 
$
182,746

 
$
304,673

 
$
13,088

 
$
1,739,522

Impaired loans
 
636

 
1,236

 
547

 
1,024

 
116

 
3,559

 
 
842,345

 
398,542

 
183,293

 
305,697

 
13,204

 
1,743,081

PCI loans
 
17,682

 
8,712

 
4,602

 
2,557

 
605

 
34,158

  Total loans
 
$
860,027

 
$
407,254

 
$
187,895

 
$
308,254

 
$
13,809

 
$
1,777,239

Schedule of Allowance for Loan Losses for Impaired and Performing Loans Receivable
The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans (in thousands):
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and
Other
 
Total
September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Performing loans
 
$
4,225

 
$
1,983

 
$
1,043

 
$
1,725

 
$
71

 
$
9,047

Impaired loans
 

 
206

 

 
423

 

 
629

 
 
4,225

 
2,189

 
1,043

 
2,148

 
71

 
9,676

PCI loans
 
35

 
81

 

 

 

 
116

  Total loans
 
$
4,260

 
$
2,270

 
$
1,043

 
$
2,148

 
$
71

 
$
9,792

December 31, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Performing loans
 
$
3,639

 
$
1,763

 
$
795

 
$
1,304

 
$
240

 
$
7,741

Impaired loans
 

 
26

 

 
442

 
66

 
534

 
 
3,639

 
1,789

 
795

 
1,746

 
306

 
8,275

PCI loans
 

 

 

 

 

 

  Total loans
 
$
3,639

 
$
1,789

 
$
795

 
$
1,746

 
$
306

 
$
8,275

Schedule of Financing Receivable Allowance for Credit Losses
The following tables detail the changes in the allowance for loan losses by loan classification (in thousands):
 
 
Commercial
Real Estate
 
Consumer
Real
Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Three Months Ended September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
4,102

 
$
2,189

 
$
946

 
$
1,746

 
$
114

 
$
9,097

Charged off loans
 
(36
)
 
(1
)
 

 
(20
)
 
(50
)
 
(107
)
Recoveries of charge-offs
 
39

 
17

 
3

 
12

 
7

 
78

Provision (reallocation) charged to expense
 
155

 
65

 
94

 
410

 

 
724

Ending balance
 
$
4,260

 
$
2,270

 
$
1,043

 
$
2,148

 
$
71

 
$
9,792

Three Months Ended September 30, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
3,135

 
$
1,528

 
$
744

 
$
1,367

 
$
300

 
$
7,074

Charged off loans
 

 
(2
)
 

 
(100
)
 
(156
)
 
(258
)
Recoveries of charge-offs
 

 
5

 
2

 
9

 
22

 
38

Provision (reallocation) charged to expense
 
110

 
67

 
(37
)
 
86

 
76

 
302

Ending balance
 
$
3,245

 
$
1,598

 
$
709

 
$
1,362

 
$
242

 
$
7,156



 
 
Commercial
Real Estate
 
Consumer
Real
Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Nine Months Ended September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
3,639

 
$
1,789

 
$
795

 
$
1,746

 
$
306

 
$
8,275

Charged off loans
 
(36
)
 
(3
)
 

 
(353
)
 
(260
)
 
(652
)
Recoveries of charge-offs
 
63

 
37

 
7

 
66

 
82

 
255

Provision (reallocation) charged to expense
 
594

 
447

 
241

 
689

 
(57
)
 
1,914

Ending balance
 
$
4,260

 
$
2,270

 
$
1,043

 
$
2,148

 
$
71

 
$
9,792

Nine Months Ended September 30, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
2,465

 
$
1,596

 
$
521

 
$
1,062

 
$
216

 
$
5,860

Charged off loans
 
(38
)
 
(27
)
 

 
(178
)
 
(257
)
 
(500
)
Recoveries of charge-offs
 

 
55

 
7

 
65

 
62

 
189

Provision (reallocation) charged to expense
 
818

 
(26
)
 
181

 
413

 
221

 
1,607

Ending balance
 
$
3,245

 
$
1,598

 
$
709

 
$
1,362

 
$
242

 
$
7,156



Financing Receivable Credit Quality Indicators
The following tables outline the amount of each loan classification and the amount categorized into each risk rating (in thousands):

 
 
September 30, 2019
Non PCI Loans:
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Pass
 
$
856,238

 
$
394,525

 
$
209,029

 
$
332,165

 
$
10,273

 
$
1,802,230

Watch
 
15,488

 
2,503

 
5,164

 
7,433

 
42

 
30,630

Special mention
 
489

 
9

 
155

 
612

 
1

 
1,266

Substandard
 
367

 
1,159

 
774

 
556

 
97

 
2,953

Doubtful
 

 
166

 

 
7

 
24

 
197

Total
 
$
872,582

 
$
398,362

 
$
215,122

 
$
340,773

 
$
10,437

 
$
1,837,276

PCI Loans:
 

 

 

 

 

 

Pass
 
$
13,760

 
$
4,969

 
$
516

 
$
53

 
$
325

 
$
19,623

Watch
 
2,497

 
383

 
4,113

 
1

 
15

 
7,009

Special mention
 
886

 
435

 

 

 
5

 
1,326

Substandard
 
737

 
1,382

 

 
380

 
14

 
2,513

Doubtful
 

 

 

 

 

 

Total
 
$
17,880

 
$
7,169

 
$
4,629

 
$
434

 
$
359

 
$
30,471

Total loans
 
$
890,462

 
$
405,531

 
$
219,751

 
$
341,207

 
$
10,796

 
$
1,867,747


 
 
December 31, 2018
Non PCI Loans:
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Pass
 
$
834,912

 
$
394,728

 
$
182,524

 
$
303,805

 
$
12,927

 
$
1,728,896

Watch
 
6,791

 
2,678

 
64

 
1,090

 
135

 
10,758

Special mention
 

 
14

 
158

 
137

 

 
309

Substandard
 
642

 
1,122

 
547

 
462

 
142

 
2,915

Doubtful
 

 

 

 
203

 

 
203

Total
 
$
842,345

 
$
398,542

 
$
183,293

 
$
305,697

 
$
13,204

 
$
1,743,081

PCI Loans:
 

 

 

 

 

 

Pass
 
$
14,050

 
$
5,617

 
$
4,033

 
$
2,382

 
$
541

 
$
26,623

Watch
 
1,805

 
756

 
569

 

 
17

 
3,147

Special mention
 
1,030

 
446

 

 
50

 
10

 
1,536

Substandard
 
797

 
1,893

 

 
125

 
37

 
2,852

Doubtful
 

 

 

 

 

 

Total
 
$
17,682

 
$
8,712

 
$
4,602

 
$
2,557

 
$
605

 
$
34,158

Total loans
 
$
860,027

 
$
407,254

 
$
187,895

 
$
308,254

 
$
13,809

 
$
1,777,239

Past Due Financing Receivables
The following tables present an aging analysis of our loan portfolio (in thousands): 
 
 
September 30, 2019
 
 
30-60 Days
Past Due and
Accruing
 
61-89 Days
 Past Due and
Accruing
 
Past Due 90
Days or More
and Accruing
 
Nonaccrual
 
Total
Past Due
and Nonaccrual
 
PCI Loans
 
Current
Loans
 
Total
Loans
Commercial real estate
 
$
175

 
$

 
$

 
$
124

 
$
299

 
$
17,880

 
$
872,283

 
$
890,462

Consumer real estate
 
321

 
391

 
497

 
1,403

 
2,612

 
6,672

 
396,247

 
405,531

Construction and land development
 
271

 

 

 
621

 
892

 
4,629

 
214,230

 
219,751

Commercial and industrial
 
684

 
166

 
95

 
377

 
1,322

 
339

 
339,546

 
341,207

Consumer and other
 
184

 
77

 
16

 
39

 
316

 
343

 
10,137

 
10,796

Total
 
$
1,635

 
$
634

 
$
608

 
$
2,564

 
$
5,441

 
$
29,863

 
$
1,832,443

 
$
1,867,747


 
 
December 31, 2018
 
 
30-60 Days
Past Due and
Accruing
 
61-89 Days
Past Due and
Accruing
 
Past Due 90
Days or More
and Accruing
 
Nonaccrual
 
Total
Past Due
and Nonaccrual
 
PCI
Loans
 
Current
Loans
 
Total
Loans
Commercial real estate
 
$
377

 
$
19

 
$

 
$
272

 
$
668

 
$
17,682

 
$
841,677

 
$
860,027

Consumer real estate
 
1,168

 
462

 
454

 
844

 
2,928

 
8,712

 
395,614

 
407,254

Construction and land development
 
343

 

 

 
547

 
890

 
4,602

 
182,403

 
187,895

Commercial and industrial
 
155

 

 
101

 
909

 
1,165

 
2,557

 
304,532

 
308,254

Consumer and other
 
117

 

 
29

 
124

 
270

 
605

 
12,934

 
13,809

Total
 
$
2,160

 
$
481

 
$
584

 
$
2,696

 
$
5,921

 
$
34,158

 
$
1,737,160

 
$
1,777,239

Impaired Financing Receivables
The following is an analysis of the impaired loan portfolio, including PCI loans, detailing the related allowance recorded (in thousands):  
 
 
September 30, 2019
 
December 31, 2018
 
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
Impaired loans without a valuation allowance:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial real estate
 
$
257

 
$
262

 
$

 
$
636

 
$
648

 
$

Consumer real estate
 
751

 
751

 

 
1,073

 
1,089

 

Construction and land development
 
700

 
700

 

 
547

 
547

 

Commercial and industrial
 

 

 

 
69

 
70

 

Consumer and other
 

 

 

 
29

 
33

 

 
 
1,708

 
1,713

 

 
2,354

 
2,387

 

Impaired loans with a valuation allowance:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial real estate
 

 

 

 

 

 

Consumer real estate
 
394

 
394

 
206

 
163

 
205

 
26

Construction and land development
 

 

 

 

 

 

Commercial and industrial
 
451

 
451

 
423

 
955

 
973

 
442

Consumer and other
 

 

 

 
87

 
87

 
66

 
 
845

 
845

 
629

 
1,205

 
1,265

 
534

PCI loans:
 
 
 
 
 
 
 
 
 
 
 
 
  Commercial real estate
 
2,516

 
2,834

 
35

 

 

 

Consumer real estate
 
1,206

 
1,261

 
81

 

 

 

 
 
3,722

 
4,095

 
116

 

 

 

Total impaired loans
 
$
6,275

 
$
6,653

 
$
745

 
$
3,559

 
$
3,652

 
$
534


 
 
Three Months Ended September 30,
 
 
2019
 
2018
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Impaired loans without a valuation allowance:
 
 

 
 

 
 

 
 

Commercial real estate
 
$
258

 
$
3

 
$
1,117

 
$
12

Consumer real estate
 
568

 
4

 
887

 
10

Construction and land development
 
701

 
3

 
547

 

Commercial and industrial
 

 

 
77

 
2

Consumer and other
 

 

 
16

 
1

 
 
1,527

 
10

 
2,644

 
25

Impaired loans with a valuation allowance:
 
 

 
 

 
 

 
 

Commercial real estate
 

 

 

 

Consumer real estate
 
396

 
4

 
290

 
2

Construction and land development
 

 

 

 

Commercial and industrial
 
352

 
1

 
393

 
5

Consumer and other
 

 

 
73

 
1

 
 
748

 
5

 
756

 
8

PCI loans:
 
 
 
 
 
 
 
 
Commercial real estate
 
2,520

 

 
29

 

Consumer real estate
 
1,151

 

 

 

 
 
3,671

 

 
29

 

Total impaired loans
 
$
5,946

 
$
15

 
$
3,429

 
$
33



 
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Impaired loans without a valuation allowance:
 
 

 
 

 
 

 
 

Commercial real estate
 
$
435

 
$
28

 
$
802

 
$
27

Consumer real estate
 
768

 
8

 
769

 
22

Construction and land development
 
637

 
5

 
547

 

Commercial and industrial
 
25

 
1

 
62

 
5

Consumer and other
 
14

 
1

 
8

 
1

 
 
1,879

 
43

 
2,188

 
55

Impaired loans with a valuation allowance:
 
 

 
 

 
 

 
 

Commercial real estate
 
12

 
1

 
6

 

Consumer real estate
 
248

 
6

 
576

 
13

Construction and land development
 
14

 

 

 

Commercial and industrial
 
498

 
10

 
280

 
10

Consumer and other
 
28

 

 
68

 
3

 
 
800

 
17

 
930

 
26

PCI loans:
 
 
 
 
 
 
 
 
Commercial real estate
 
1,894

 
(10
)
 
11

 
3

Consumer real estate
 
851

 
3

 

 

 
 
2,745

 
(7
)
 
11

 
3

Total impaired loans
 
$
5,424

 
$
53

 
$
3,129

 
$
84

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period, Carrying Amount of Loans
The Company has acquired loans where there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans are as follows (in thousands):

 
September 30,
 
December 31,
 
2019
 
2018
Commercial real estate
$
24,651

 
$
24,849

Consumer real estate
9,127

 
11,108

Construction and land development
2,697

 
5,731

Commercial and industrial
5,633

 
5,824

Consumer and other
556

 
892

  Total loans
42,664

 
48,404

Less: Remaining purchase discount
(12,193
)
 
(14,246
)
  Total loans, net of purchase discount
30,471

 
34,158

Less: Allowance for loan losses
(116
)
 

  Carrying amount, net of allowance
$
30,355

 
$
34,158

Schedule of Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement
Activity related to the accretable yield on loans acquired with deteriorated credit quality is as follows (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2019
 
2018
 
2019
 
2018
Accretable yield, beginning of period
$
8,280

 
$
7,206

 
$
7,052

 
$
9,287

Additions

 

 

 
1,292

Accretion income
(1,073
)
 
(746
)
 
(3,353
)
 
(3,776
)
Reclassification
1,033

 
2,516

 
2,392

 
2,898

Other changes, net
390

 
243

 
2,539

 
(482
)
Accretable yield, end of period
$
8,630

 
$
9,219

 
$
8,630

 
$
9,219

v3.19.3
Commitments and Contingent Liabilities (Tables)
9 Months Ended
Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Other Commitments
A summary of the Company’s total contractual amount for all off-balance sheet commitments are as follows (in thousands):
 
September 30,
 
December 31,
 
2019
 
2018
Commitments to extend credit
$
383,315

 
$
333,900

Standby letters of credit
8,021

 
12,200

v3.19.3
Fair Value Disclosures (Tables)
9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis are as follows (in thousands): 
Description
 
Fair Value
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
September 30, 2019:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Securities available-for-sale:
 
 

 
 

 
 

 
 

U.S. Government-sponsored enterprises (GSEs)
 
$
19,018

 
$

 
$
19,018

 
$

Municipal securities
 
60,081

 

 
60,081

 

Other debt securities
 
3,445

 

 
3,445

 

Mortgage-backed securities (GSEs)
 
88,963

 

 
88,963

 

Total securities available-for-sale
 
$
171,507

 
$

 
$
171,507

 
$

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Derivative financial instruments
 
$
4,456

 
$

 
$
4,456

 
$


December 31, 2018:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Securities available-for-sale:
 
 

 
 

 
 

 
 

U.S. Government-sponsored enterprises (GSEs)
 
$
43,503

 
$

 
$
43,503

 
$

Municipal securities
 
55,161

 

 
55,161

 

Other debt securities
 
910

 

 
910

 

Mortgage-backed securities (GSEs)
 
102,114

 

 
102,114

 

Total securities available-for-sale
 
$
201,688

 
$

 
$
201,688

 
$

 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
Derivative financial instruments
 
$
1,174

 

 
$
1,174

 

Fair Value, Assets and Liabilities Measured on Non-Recurring Basis
The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands):
 
 
 
Fair Value
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Other Unobservable Inputs (Level 3)
September 30, 2019:
 
 
 
 
 
 
 
 
Impaired loans
 
$
3,822

 
$

 
$

 
$
3,822

Other real estate owned
 
1,561

 

 

 
1,561

 
 
 
 
 
 
 
 
 
December 31, 2018:
 
 
 
 
 
 
 
 
Impaired loans
 
$
671

 
$

 
$

 
$
671

Other real estate owned
 
2,495

 

 

 
2,495

Fair Value Measurement Inputs and Valuation Techniques
For Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements are presented below (in thousands).

 
 
Fair Value
 
Valuation
Technique
 
Significant Other
Unobservable Input
 
Weighted
Average of Input
September 30, 2019:
 
 
 
 
 
 
 
 
Impaired loans
 
$
3,822

 
Appraisal and cashflow
 
Appraisal and cashflow discounts
 
16
%
Other real estate owned
 
1,561

 
Appraisal
 
Appraisal discounts
 
8
%
 
 
 
 
 
 
 
 
 
December 31, 2018:
 
 
 
 
 
 
 
 
Impaired loans
 
$
671

 
Appraisal
 
Appraisal Discounts
 
44
%
Other real estate owned
 
2,495

 
Appraisal
 
Appraisal Discounts
 
23
%
Fair Value, by Balance Sheet Grouping
The carrying amount and estimated fair value of the Company’s financial instruments are as follows (in thousands):
 
 
 
 
Fair Value Measurements Using
 
 
 
 
Carrying
Amount
 
Level 1
 
Level 2
 
Level 3
 
Estimated
Fair Value
September 30, 2019:
 
 
 
 
 
 
 
 
 
 
Assets:
 
 

 
 
 
 
 
 
 
 

Cash and cash equivalents
 
$
170,934

 
$
170,934

 
$

 
$

 
$
170,934

Securities available-for-sale
 
171,507

 

 
171,507

 

 
171,507

Other investments
 
12,913

 
N/A

 
N/A

 
N/A

 
N/A

Loans, net
 
1,857,955

 

 

 
1,849,197

 
1,849,197

Liabilities:
 
 

 
 
 
 
 
 
 
 

Noninterest-bearing demand deposits
 
365,024

 

 
365,024

 

 
365,024

Interest-bearing demand deposits
 
351,474

 

 
351,474

 

 
351,474

Money market and savings deposits
 
634,934

 

 
634,934

 

 
634,934

Time deposits
 
646,641

 

 
647,780

 

 
647,780

Securities sold under agreements to repurchase
 
4,368

 

 
4,368

 

 
4,368

Federal Home Loan Bank advances and other borrowings
 
25,460

 

 
25,460

 

 
25,460

Subordinated debt
 
39,240

 

 

 
37,379


37,379

Derivative financial instruments
 
4,456

 

 
4,456

 

 
4,456



December 31, 2018:
 
 
 
 
 
 
 
 
 
 
Assets:
 
 

 
 
 
 
 
 
 
 

Cash and cash equivalents
 
$
115,822

 
$
115,822

 
$

 
$

 
$
115,822

Securities available-for-sale
 
201,688

 

 
201,688

 

 
201,688

Other investments
 
11,499

 
N/A

 
N/A

 
N/A

 
N/A

Loans, net
 
1,768,964

 

 

 
1,766,838

 
1,766,838

Liabilities:
 
 

 
 
 
 
 
 
 
 

Noninterest-bearing demand deposits
 
319,861

 

 
319,861

 

 
319,861

Interest-bearing demand deposits
 
311,482

 

 
311,482

 

 
311,482

Money market and savings deposits
 
641,945

 

 
641,945

 

 
641,945

Time deposits
 
648,676

 

 
649,169

 

 
649,169

Securities sold under agreements to repurchase
 
11,756

 

 
11,756

 

 
11,756

Federal Home Loan Bank advances and other borrowings
 
11,243

 

 
11,243

 

 
11,243

Subordinated debt
 
39,177

 

 

 
39,190

 
39,190

Derivative financial instruments
 
1,174

 

 
1,174

 

 
1,174

v3.19.3
Derivatives (Tables)
9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Value Hedge Relationships in Balance Sheet
A summary of the Company's fair value hedge relationships for the periods presented are as follows (in thousands):
 
 
 
 
 
 
 
 
 
 
 
Liability derivatives
 
Balance Sheet Location
 
Weighted Average Remaining Maturity (In Years)
 
Weighted Average Pay Rate
 
Receive Rate
 
Notional Amount
 
Estimated Fair Value
September 30, 2019:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap agreements - securities
 
Other liabilities
 
8.45
 
3.09%
 
3 month LIBOR
 
$
36,000

 
$
(4,456
)
December 31, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swap agreements - securities
 
Other liabilities
 
9.23
 
3.10%
 
3 month LIBOR
 
$
35,000

 
$
(1,174
)
Schedule of Fair Value Hedge Relationships on Income Statement
The effects of the Company's fair value hedge relationships reported in interest income on tax-exempt available-for-sale securities
on the consolidated income statement were as follows (in thousands):
 
 
 Three Months Ended September 30,
 
 Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
Interest income on tax-exempt securities
 
$
400

 
$
247

 
$
1,305

 
$
247

Effects of fair value hedge relationships
 
(62
)
 
(7
)
 
(132
)
 
(7
)
   Reported interest income on tax-exempt securities
 
$
338

 
$
240

 
$
1,173

 
$
240

 
 
 
 
 
 
 
 
 
 
 
 Three Months Ended September 30,
 
Nine Months Ended September 30,
Gain (loss) on fair value hedging relationship
 
2019
 
2018
 
2019
 
2018
Interest rate swap agreements - securities:
 
 
 
 
 
 
 
 
    Hedged items
 
$
1,045

 
7

 
$
3,282

 
7

    Derivative designated as hedging instruments
 
(1,045
)
 
(7
)
 
(3,282
)
 
(7
)
Schedule of Fair Value Hedges
The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges (in thousands):
Line item on the balance sheet
 
Carrying Amount of the Hedged Assets
 
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets
September 30, 2019:
 
 
 
 
Securities available-for-sale
 
$
43,808

 
$
4,456

December 31, 2018:
 
 
 
 
Securities available-for-sale
 
$
39,730

 
$
1,174

v3.19.3
Leases (Tables)
9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Summary of Lease Assets and Liabilities
The following table represents the consolidated balance sheet classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated balance sheet (dollars in thousands):
 
 
 
September 30,
 
Classification
 
2019
Assets:
 
 
 
  Operating lease right-of-use assets
Other assets
 
$
2,134

Liabilities:
 
 
 
  Operating lease liabilities
Other liabilities
 
$
2,150

Summary of Lease Costs and Other Information
The following table represents lease costs and other lease information, in thousands. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance (in thousands).
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2019
 
2019
Lease costs:
 
 
 
 
  Operating lease costs
 
$
149

 
$
464

  Short-term lease costs
 
2

 
13

  Variable lease costs
 
23

 
69

    Total
 
$
174

 
$
546

Other information:
 
 
 
 
Cash paid for amounts included in the measurement of lease liabilities:
 
 
  Operating cash flows from operating leases
 
$
145

 
$
447

Summary of Future Minimum Payments
Future minimum payments for operating leases with initial or remaining terms of one year or more as of September 30, 2019 were as follows (in thousands):
 
Amounts
September 30, 2020
$
521

September 30, 2021
487

September 30, 2022
250

September 30, 2023
140

September 30, 2024
67

Thereafter
685

Total future minimum lease payments
2,150

Amounts representing interest
(311
)
Present value of net future minimum lease payments
$
1,839

v3.19.3
Earnings Per Share - Basic and Diluted (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Earnings Per Share [Abstract]        
Net income $ 5,963 $ 4,324 $ 19,815 $ 11,670
Weighted average basic common shares outstanding (in shares) 13,955,859 12,718,861 13,949,325 12,049,151
Effect of dilutive stock options (in shares) 97,573 98,695 89,089 94,687
Weighted average dilutive shares outstanding (in shares) 14,053,432 12,817,556 14,038,414 12,143,838
Basic earnings per common share (in dollars per share) $ 0.43 $ 0.34 $ 1.42 $ 0.97
Diluted earnings per common share (in dollars per share) $ 0.42 $ 0.34 $ 1.41 $ 0.96
v3.19.3
Earnings per share - Narrative (Details) - shares
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Earnings Per Share [Abstract]        
Antidilutive securities excluded from computation of earnings per share (in shares) 0 0 0 0
v3.19.3
Securities - Amortized Cost and Fair Value of Available-for-sale Securities (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 170,773 $ 204,217
Gross Unrealized Gains 1,193 441
Gross Unrealized Losses (459) (2,970)
Fair Value 171,507 201,688
U.S. Government-sponsored enterprises (GSEs) [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 19,023 44,117
Gross Unrealized Gains 42 12
Gross Unrealized Losses (47) (626)
Fair Value 19,018 43,503
Municipal securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 59,272 55,248
Gross Unrealized Gains 816 276
Gross Unrealized Losses (7) (363)
Fair Value 60,081 55,161
Other debt securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 3,480 977
Gross Unrealized Gains 12 0
Gross Unrealized Losses (47) (67)
Fair Value 3,445 910
Mortgage-backed securities (GSEs) [Member]    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 88,998 103,875
Gross Unrealized Gains 323 153
Gross Unrealized Losses (358) (1,914)
Fair Value $ 88,963 $ 102,114
v3.19.3
Securities - Narrative (Details) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Loans and Leases Receivable Disclosure [Line Items]          
Proceeds from sales of securities available-for-sale $ 0 $ 0 $ 16,515,000 $ 24,563,000  
Realized gains     35,000    
Realized losses     1,000 1,000  
Proceeds from available-for-sale securities redeemed 5,000,000 $ 0 16,000,000    
Called debt security, realized loss       $ 1,000  
Collateral Pledged [Member]          
Loans and Leases Receivable Disclosure [Line Items]          
Restricted securities $ 96,400,000   $ 96,400,000   $ 103,700,000
v3.19.3
Securities - Available-for-sale Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]    
Securities Available for Sale, Due in one year or less, Amortized Cost $ 3,293  
Securities Available for Sale, Due from one year to five years, Amortized Cost 10,850  
Securities Available for Sale, Due from five years to ten years, Amortized Cost 12,691  
Securities Available for Sale, Due after ten years, Amortized Cost 54,941  
Securities Available for Sale, Amortized Cost 81,775  
Amortized Cost 170,773 $ 204,217
Securities Available for Sale, Due in one year or less, Fair Value 3,283  
Securities Available for Sale, Due from one year to five years, Fair Value 10,816  
Securities Available for Sale, Due from five years to ten years, Fair Value 12,726  
Securities Available for Sale, Due after ten years, Fair Value 55,719  
Securities Available for Sale, Fair Value 82,544  
Securities available for sale 171,507 $ 201,688
Mortgage-backed securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Mortgage-backed securities, Amortized Cost 88,998  
Mortgage-backed securities, Fair Value $ 88,963  
v3.19.3
Securities - Available-for-sale Securities in Continuous Loss Position (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, fair value, less than 12 months $ 15,701 $ 41,734
Available-for-sale, gross unrealized losses, less than 12 months (107) (542)
Available-for-sale, fair value, 12 months or greater 33,406 89,289
Available-for-sale, gross unrealized losses, 12 months or greater (352) (2,428)
Securities available for sale 49,107 131,023
Available-for-sale, gross unrealized losses, total (459) (2,970)
U.S. Government-sponsored enterprises (GSEs) [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, fair value, less than 12 months 2,999 14,763
Available-for-sale, gross unrealized losses, less than 12 months (24) (237)
Available-for-sale, fair value, 12 months or greater 5,977 13,728
Available-for-sale, gross unrealized losses, 12 months or greater (23) (389)
Securities available for sale 8,976 28,491
Available-for-sale, gross unrealized losses, total (47) (626)
Municipal securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, fair value, less than 12 months 970 16,455
Available-for-sale, gross unrealized losses, less than 12 months (3) (150)
Available-for-sale, fair value, 12 months or greater 527 4,767
Available-for-sale, gross unrealized losses, 12 months or greater (4) (213)
Securities available for sale 1,497 21,222
Available-for-sale, gross unrealized losses, total (7) (363)
Other debt securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, fair value, less than 12 months 0 0
Available-for-sale, gross unrealized losses, less than 12 months 0 0
Available-for-sale, fair value, 12 months or greater 933 910
Available-for-sale, gross unrealized losses, 12 months or greater (47) (67)
Securities available for sale 933 910
Available-for-sale, gross unrealized losses, total (47) (67)
Mortgage-backed securities (GSEs) [Member]    
Debt Securities, Available-for-sale [Line Items]    
Available-for-sale, fair value, less than 12 months 11,732 10,516
Available-for-sale, gross unrealized losses, less than 12 months (80) (155)
Available-for-sale, fair value, 12 months or greater 25,969 69,884
Available-for-sale, gross unrealized losses, 12 months or greater (278) (1,759)
Securities available for sale 37,701 80,400
Available-for-sale, gross unrealized losses, total $ (358) $ (1,914)
v3.19.3
Securities - Temporarily Impaired Securities (Details)
$ in Thousands
Sep. 30, 2019
USD ($)
contract
Dec. 31, 2018
USD ($)
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Loss | $ $ (352) $ (2,428)
Number of Securities | contract 40  
US Government-sponsored Enterprises Debt Securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Loss | $ $ (23) (389)
Number of Securities | contract 2  
Municipal securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Loss | $ $ (4) (213)
Number of Securities | contract 1  
Other debt securities [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Loss | $ $ (47) (67)
Number of Securities | contract 1  
Mortgage-backed securities (GSEs) [Member]    
Debt Securities, Available-for-sale [Line Items]    
Gross Unrealized Loss | $ $ (278) $ (1,759)
Number of Securities | contract 36  
v3.19.3
Securities - Other Investments (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Debt and Equity Securities, FV-NI [Line Items]    
Other investments $ 12,913 $ 11,499
Federal Reserve Bank Stock [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Other investments 7,917 7,010
Federal Home Loan Bank Stock [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Other investments 4,646 4,139
First National Bankers Bank Stock [Member]    
Debt and Equity Securities, FV-NI [Line Items]    
Other investments $ 350 $ 350
v3.19.3
Loans and Allowance for Loan Losses - Loan Summary (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans $ 1,867,747   $ 1,777,239      
Less: Allowance for loan losses (9,792) $ (9,097) (8,275) $ (7,156) $ (7,074) $ (5,860)
Loans, net 1,857,955   1,768,964      
Purchased Credit Impaired Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 30,471   34,158      
Less: Allowance for loan losses (116)   0      
Loans, net 30,355   34,158      
All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 1,837,276   1,743,081      
Less: Allowance for loan losses (9,676)   (8,275)      
Loans, net 1,827,600   1,734,806      
Commercial Real Estate [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 890,462   860,027      
Less: Allowance for loan losses (4,260) (4,102) (3,639) (3,245) (3,135) (2,465)
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 17,880   17,682      
Less: Allowance for loan losses (35)   0      
Commercial Real Estate [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 872,582   842,345      
Less: Allowance for loan losses (4,225)   (3,639)      
Consumer Real Estate [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 405,531   407,254      
Less: Allowance for loan losses (2,270) (2,189) (1,789) (1,598) (1,528) (1,596)
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 7,169   8,712      
Less: Allowance for loan losses (81)   0      
Consumer Real Estate [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 398,362   398,542      
Less: Allowance for loan losses (2,189)   (1,789)      
Construction and Land Development [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 219,751   187,895      
Less: Allowance for loan losses (1,043) (946) (795) (709) (744) (521)
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 4,629   4,602      
Less: Allowance for loan losses 0   0      
Construction and Land Development [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 215,122   183,293      
Less: Allowance for loan losses (1,043)   (795)      
Commercial and Industrial [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 341,207   308,254      
Less: Allowance for loan losses (2,148) (1,746) (1,746) (1,362) (1,367) (1,062)
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 434   2,557      
Less: Allowance for loan losses 0   0      
Commercial and Industrial [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 340,773   305,697      
Less: Allowance for loan losses (2,148)   (1,746)      
Consumer and Other [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 10,796   13,809      
Less: Allowance for loan losses (71) $ (114) (306) $ (242) $ (300) $ (216)
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 359   605      
Less: Allowance for loan losses 0   0      
Consumer and Other [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Total loans 10,437   13,204      
Less: Allowance for loan losses $ (71)   $ (306)      
v3.19.3
Loans and Allowance for Loan Losses - Narrative (Details)
9 Months Ended
Sep. 30, 2019
USD ($)
loan
segment
Sep. 30, 2018
USD ($)
loan
Dec. 31, 2018
USD ($)
Financing Receivable, Troubled Debt Restructuring [Line Items]      
Loan portfolio segments | segment 5    
Number of contracts | loan 0    
Number of contracts, subsequent payment default | loan 0    
Other real estate owned | $ $ 1,561,000   $ 2,495,000
Trouble Debt Restructuring [Member]      
Financing Receivable, Troubled Debt Restructuring [Line Items]      
Loans that met criteria for restructured | $ $ 61,000   $ 116,000
Number of contracts, nonaccrual | loan 0    
Commercial Real Estate [Member]      
Financing Receivable, Troubled Debt Restructuring [Line Items]      
Loans that met criteria for restructured | $   $ 622,000  
Number of contracts | loan   1  
Consumer Real Estate [Member]      
Financing Receivable, Troubled Debt Restructuring [Line Items]      
Loans that met criteria for restructured | $   $ 34,000  
Number of contracts | loan   1  
Residential Real Estate [Member]      
Financing Receivable, Troubled Debt Restructuring [Line Items]      
Other real estate owned | $ $ 0    
v3.19.3
Loans and Allowance for Loan Losses - Performing and Impaired Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans $ 1,867,747 $ 1,777,239
All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 1,837,276 1,743,081
Purchased Credit Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 30,471 34,158
Commercial Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 890,462 860,027
Commercial Real Estate [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 872,582 842,345
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 17,880 17,682
Consumer Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 405,531 407,254
Consumer Real Estate [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 398,362 398,542
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 7,169 8,712
Construction and Land Development [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 219,751 187,895
Construction and Land Development [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 215,122 183,293
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 4,629 4,602
Commercial and Industrial [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 341,207 308,254
Commercial and Industrial [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 340,773 305,697
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 434 2,557
Consumer and Other [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 10,796 13,809
Consumer and Other [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 10,437 13,204
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 359 605
Performing [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 1,834,723 1,739,522
Performing [Member] | Commercial Real Estate [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 872,325 841,709
Performing [Member] | Consumer Real Estate [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 397,217 397,306
Performing [Member] | Construction and Land Development [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 214,422 182,746
Performing [Member] | Commercial and Industrial [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 340,322 304,673
Performing [Member] | Consumer and Other [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 10,437 13,088
Impaired Loans [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 2,553 3,559
Impaired Loans [Member] | Commercial Real Estate [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 257 636
Impaired Loans [Member] | Consumer Real Estate [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 1,145 1,236
Impaired Loans [Member] | Construction and Land Development [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 700 547
Impaired Loans [Member] | Commercial and Industrial [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 451 1,024
Impaired Loans [Member] | Consumer and Other [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans $ 0 $ 116
v3.19.3
Loans and Allowance for Loan Losses - ALL by Loan Classification (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Jun. 30, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses $ 9,792 $ 9,097 $ 8,275 $ 7,156 $ 7,074 $ 5,860
All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 9,676   8,275      
Purchased Credit Impaired Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 116   0      
Performing [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 9,047   7,741      
Impaired Loans [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 629   534      
Commercial Real Estate [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 4,260 4,102 3,639 3,245 3,135 2,465
Commercial Real Estate [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 4,225   3,639      
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 35   0      
Commercial Real Estate [Member] | Performing [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 4,225   3,639      
Commercial Real Estate [Member] | Impaired Loans [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 0   0      
Consumer Real Estate [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 2,270 2,189 1,789 1,598 1,528 1,596
Consumer Real Estate [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 2,189   1,789      
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 81   0      
Consumer Real Estate [Member] | Performing [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 1,983   1,763      
Consumer Real Estate [Member] | Impaired Loans [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 206   26      
Construction and Land Development [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 1,043 946 795 709 744 521
Construction and Land Development [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 1,043   795      
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 0   0      
Construction and Land Development [Member] | Performing [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 1,043   795      
Construction and Land Development [Member] | Impaired Loans [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 0   0      
Commercial and Industrial [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 2,148 1,746 1,746 1,362 1,367 1,062
Commercial and Industrial [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 2,148   1,746      
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 0   0      
Commercial and Industrial [Member] | Performing [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 1,725   1,304      
Commercial and Industrial [Member] | Impaired Loans [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 423   442      
Consumer and Other [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 71 $ 114 306 $ 242 $ 300 $ 216
Consumer and Other [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 71   306      
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 0   0      
Consumer and Other [Member] | Performing [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses 71   240      
Consumer and Other [Member] | Impaired Loans [Member] | All Other Loans [Member]            
Accounts, Notes, Loans and Financing Receivable [Line Items]            
Allowance for loan losses $ 0   $ 66      
v3.19.3
Loans and Allowance for Loan Losses - ALL Roll Forward (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Allowance for Loan and Lease Losses [Roll Forward]        
Beginning balance $ 9,097 $ 7,074 $ 8,275 $ 5,860
Charged off loans (107) (258) (652) (500)
Recoveries of charge-offs 78 38 255 189
Provision (reallocation) charged to expense 724 302 1,914 1,607
Ending balance 9,792 7,156 9,792 7,156
Commercial Real Estate [Member]        
Allowance for Loan and Lease Losses [Roll Forward]        
Beginning balance 4,102 3,135 3,639 2,465
Charged off loans (36) 0 (36) (38)
Recoveries of charge-offs 39 0 63 0
Provision (reallocation) charged to expense 155 110 594 818
Ending balance 4,260 3,245 4,260 3,245
Consumer Real Estate [Member]        
Allowance for Loan and Lease Losses [Roll Forward]        
Beginning balance 2,189 1,528 1,789 1,596
Charged off loans (1) (2) (3) (27)
Recoveries of charge-offs 17 5 37 55
Provision (reallocation) charged to expense 65 67 447 (26)
Ending balance 2,270 1,598 2,270 1,598
Construction and Land Development [Member]        
Allowance for Loan and Lease Losses [Roll Forward]        
Beginning balance 946 744 795 521
Charged off loans 0 0 0 0
Recoveries of charge-offs 3 2 7 7
Provision (reallocation) charged to expense 94 (37) 241 181
Ending balance 1,043 709 1,043 709
Commercial and Industrial [Member]        
Allowance for Loan and Lease Losses [Roll Forward]        
Beginning balance 1,746 1,367 1,746 1,062
Charged off loans (20) (100) (353) (178)
Recoveries of charge-offs 12 9 66 65
Provision (reallocation) charged to expense 410 86 689 413
Ending balance 2,148 1,362 2,148 1,362
Consumer and Other [Member]        
Allowance for Loan and Lease Losses [Roll Forward]        
Beginning balance 114 300 306 216
Charged off loans (50) (156) (260) (257)
Recoveries of charge-offs 7 22 82 62
Provision (reallocation) charged to expense 0 76 (57) 221
Ending balance $ 71 $ 242 $ 71 $ 242
v3.19.3
Loans and Allowance for Loan Losses - Loan Risk Rating (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans $ 1,867,747 $ 1,777,239
Commercial Real Estate [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 890,462 860,027
Consumer Real Estate [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 405,531 407,254
Construction and Land Development [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 219,751 187,895
Commercial and Industrial [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 341,207 308,254
Consumer and Other [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 10,796 13,809
Non PCI Loans [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 1,837,276 1,743,081
Non PCI Loans [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 1,802,230 1,728,896
Non PCI Loans [Member] | Watch [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 30,630 10,758
Non PCI Loans [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 1,266 309
Non PCI Loans [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 2,953 2,915
Non PCI Loans [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 197 203
Non PCI Loans [Member] | Commercial Real Estate [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 872,582 842,345
Non PCI Loans [Member] | Commercial Real Estate [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 856,238 834,912
Non PCI Loans [Member] | Commercial Real Estate [Member] | Watch [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 15,488 6,791
Non PCI Loans [Member] | Commercial Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 489 0
Non PCI Loans [Member] | Commercial Real Estate [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 367 642
Non PCI Loans [Member] | Commercial Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Non PCI Loans [Member] | Consumer Real Estate [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 398,362 398,542
Non PCI Loans [Member] | Consumer Real Estate [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 394,525 394,728
Non PCI Loans [Member] | Consumer Real Estate [Member] | Watch [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 2,503 2,678
Non PCI Loans [Member] | Consumer Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 9 14
Non PCI Loans [Member] | Consumer Real Estate [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 1,159 1,122
Non PCI Loans [Member] | Consumer Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 166 0
Non PCI Loans [Member] | Construction and Land Development [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 215,122 183,293
Non PCI Loans [Member] | Construction and Land Development [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 209,029 182,524
Non PCI Loans [Member] | Construction and Land Development [Member] | Watch [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 5,164 64
Non PCI Loans [Member] | Construction and Land Development [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 155 158
Non PCI Loans [Member] | Construction and Land Development [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 774 547
Non PCI Loans [Member] | Construction and Land Development [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Non PCI Loans [Member] | Commercial and Industrial [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 340,773 305,697
Non PCI Loans [Member] | Commercial and Industrial [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 332,165 303,805
Non PCI Loans [Member] | Commercial and Industrial [Member] | Watch [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 7,433 1,090
Non PCI Loans [Member] | Commercial and Industrial [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 612 137
Non PCI Loans [Member] | Commercial and Industrial [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 556 462
Non PCI Loans [Member] | Commercial and Industrial [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 7 203
Non PCI Loans [Member] | Consumer and Other [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 10,437 13,204
Non PCI Loans [Member] | Consumer and Other [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 10,273 12,927
Non PCI Loans [Member] | Consumer and Other [Member] | Watch [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 42 135
Non PCI Loans [Member] | Consumer and Other [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 1 0
Non PCI Loans [Member] | Consumer and Other [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 97 142
Non PCI Loans [Member] | Consumer and Other [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 24 0
Purchased Credit Impaired Loans [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 30,471 34,158
Purchased Credit Impaired Loans [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 19,623 26,623
Purchased Credit Impaired Loans [Member] | Watch [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 7,009 3,147
Purchased Credit Impaired Loans [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 1,326 1,536
Purchased Credit Impaired Loans [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 2,513 2,852
Purchased Credit Impaired Loans [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 17,880 17,682
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 13,760 14,050
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Watch [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 2,497 1,805
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 886 1,030
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 737 797
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 7,169 8,712
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 4,969 5,617
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Watch [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 383 756
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 435 446
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 1,382 1,893
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 4,629 4,602
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 516 4,033
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Watch [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 4,113 569
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 434 2,557
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 53 2,382
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Watch [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 1 0
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 50
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 380 125
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 359 605
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Pass [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 325 541
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Watch [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 15 17
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Special Mention [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 5 10
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Substandard [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans 14 37
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Doubtful [Member]    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans $ 0 $ 0
v3.19.3
Loans and Allowance for Loan Losses - Past Due Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Financing Receivable, Past Due [Line Items]    
Nonaccrual $ 2,564 $ 2,696
Total Past Due and Nonaccrual 5,441 5,921
Current Loans 1,832,443 1,737,160
Total loans 1,867,747 1,777,239
Commercial Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 124 272
Total Past Due and Nonaccrual 299 668
Current Loans 872,283 841,677
Total loans 890,462 860,027
Consumer Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 1,403 844
Total Past Due and Nonaccrual 2,612 2,928
Current Loans 396,247 395,614
Total loans 405,531 407,254
Construction and Land Development [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 621 547
Total Past Due and Nonaccrual 892 890
Current Loans 214,230 182,403
Total loans 219,751 187,895
Commercial and Industrial [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 377 909
Total Past Due and Nonaccrual 1,322 1,165
Current Loans 339,546 304,532
Total loans 341,207 308,254
Consumer and Other [Member]    
Financing Receivable, Past Due [Line Items]    
Nonaccrual 39 124
Total Past Due and Nonaccrual 316 270
Current Loans 10,137 12,934
Total loans 10,796 13,809
Purchased Credit Impaired Loans [Member]    
Financing Receivable, Past Due [Line Items]    
Total loans 29,863  
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Total loans 17,880  
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Total loans 6,672  
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member]    
Financing Receivable, Past Due [Line Items]    
Total loans 4,629  
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member]    
Financing Receivable, Past Due [Line Items]    
Total loans 339  
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member]    
Financing Receivable, Past Due [Line Items]    
Total loans 343  
30 to 60 Days Past Due and Accruing [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 1,635 2,160
30 to 60 Days Past Due and Accruing [Member] | Commercial Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 175 377
30 to 60 Days Past Due and Accruing [Member] | Consumer Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 321 1,168
30 to 60 Days Past Due and Accruing [Member] | Construction and Land Development [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 271 343
30 to 60 Days Past Due and Accruing [Member] | Commercial and Industrial [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 684 155
30 to 60 Days Past Due and Accruing [Member] | Consumer and Other [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 184 117
61 to 89 Days Past Due and Accruing [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 634 481
61 to 89 Days Past Due and Accruing [Member] | Commercial Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 0 19
61 to 89 Days Past Due and Accruing [Member] | Consumer Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 391 462
61 to 89 Days Past Due and Accruing [Member] | Construction and Land Development [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 0 0
61 to 89 Days Past Due and Accruing [Member] | Commercial and Industrial [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 166 0
61 to 89 Days Past Due and Accruing [Member] | Consumer and Other [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 77 0
Past Due 90 Days or More and Accruing [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 608 584
Past Due 90 Days or More and Accruing [Member] | Commercial Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 0 0
Past Due 90 Days or More and Accruing [Member] | Consumer Real Estate [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 497 454
Past Due 90 Days or More and Accruing [Member] | Construction and Land Development [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 0 0
Past Due 90 Days or More and Accruing [Member] | Commercial and Industrial [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due 95 101
Past Due 90 Days or More and Accruing [Member] | Consumer and Other [Member]    
Financing Receivable, Past Due [Line Items]    
Recorded investment, past due $ 16 $ 29
v3.19.3
Loans and Allowance for Loan Losses - Impaired Loan Portfolio (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Financing Receivable, Impaired [Line Items]          
Impaired loans with a valuation allowance, Related Allowance $ 745   $ 745   $ 534
Total impaired loans, Recorded Investment 6,275   6,275   3,559
Total impaired loans, Unpaid Principal Balance 6,653   6,653   3,652
Total impaired loans, Average Recorded Investment 5,946 $ 3,429 5,424 $ 3,129  
Total impaired loans, Interest Income Recognized 15 33 53 84  
Non PCI Loans [Member]          
Financing Receivable, Impaired [Line Items]          
Impaired loans without a valuation allowance, Recorded Investment 1,708   1,708   2,354
Impaired loans without a valuation allowance, Unpaid Principal Balance 1,713   1,713   2,387
Impaired loans with a valuation allowance, Recorded Investment 845   845   1,205
Impaired loans with a valuation allowance, Unpaid Principal Balance 845   845   1,265
Impaired loans with a valuation allowance, Related Allowance 629   629   534
Impaired loans without a valuation allowance, Average Recorded Investment 1,527 2,644 1,879 2,188  
Impaired loans without a valuation allowance, Interest Income Recognized 10 25 43 55  
Impaired loans with a valuation allowance, Average Recorded Investment 748 756 800 930  
Impaired loans with a valuation allowance, Interest Income Recognized 5 8 17 26  
Non PCI Loans [Member] | Commercial Real Estate [Member]          
Financing Receivable, Impaired [Line Items]          
Impaired loans without a valuation allowance, Recorded Investment 257   257   636
Impaired loans without a valuation allowance, Unpaid Principal Balance 262   262   648
Impaired loans with a valuation allowance, Recorded Investment 0   0   0
Impaired loans with a valuation allowance, Unpaid Principal Balance 0   0   0
Impaired loans with a valuation allowance, Related Allowance 0   0   0
Impaired loans without a valuation allowance, Average Recorded Investment 258 1,117 435 802  
Impaired loans without a valuation allowance, Interest Income Recognized 3 12 28 27  
Impaired loans with a valuation allowance, Average Recorded Investment 0 0 12 6  
Impaired loans with a valuation allowance, Interest Income Recognized 0 0 1 0  
Non PCI Loans [Member] | Consumer Real Estate [Member]          
Financing Receivable, Impaired [Line Items]          
Impaired loans without a valuation allowance, Recorded Investment 751   751   1,073
Impaired loans without a valuation allowance, Unpaid Principal Balance 751   751   1,089
Impaired loans with a valuation allowance, Recorded Investment 394   394   163
Impaired loans with a valuation allowance, Unpaid Principal Balance 394   394   205
Impaired loans with a valuation allowance, Related Allowance 206   206   26
Impaired loans without a valuation allowance, Average Recorded Investment 568 887 768 769  
Impaired loans without a valuation allowance, Interest Income Recognized 4 10 8 22  
Impaired loans with a valuation allowance, Average Recorded Investment 396 290 248 576  
Impaired loans with a valuation allowance, Interest Income Recognized 4 2 6 13  
Non PCI Loans [Member] | Construction and Land Development [Member]          
Financing Receivable, Impaired [Line Items]          
Impaired loans without a valuation allowance, Recorded Investment 700   700   547
Impaired loans without a valuation allowance, Unpaid Principal Balance 700   700   547
Impaired loans with a valuation allowance, Recorded Investment 0   0   0
Impaired loans with a valuation allowance, Unpaid Principal Balance 0   0   0
Impaired loans with a valuation allowance, Related Allowance 0   0   0
Impaired loans without a valuation allowance, Average Recorded Investment 701 547 637 547  
Impaired loans without a valuation allowance, Interest Income Recognized 3 0 5 0  
Impaired loans with a valuation allowance, Average Recorded Investment 0 0 14 0  
Impaired loans with a valuation allowance, Interest Income Recognized 0 0 0 0  
Non PCI Loans [Member] | Commercial and Industrial [Member]          
Financing Receivable, Impaired [Line Items]          
Impaired loans without a valuation allowance, Recorded Investment 0   0   69
Impaired loans without a valuation allowance, Unpaid Principal Balance 0   0   70
Impaired loans with a valuation allowance, Recorded Investment 451   451   955
Impaired loans with a valuation allowance, Unpaid Principal Balance 451   451   973
Impaired loans with a valuation allowance, Related Allowance 423   423   442
Impaired loans without a valuation allowance, Average Recorded Investment 0 77 25 62  
Impaired loans without a valuation allowance, Interest Income Recognized 0 2 1 5  
Impaired loans with a valuation allowance, Average Recorded Investment 352 393 498 280  
Impaired loans with a valuation allowance, Interest Income Recognized 1 5 10 10  
Non PCI Loans [Member] | Consumer and Other [Member]          
Financing Receivable, Impaired [Line Items]          
Impaired loans without a valuation allowance, Recorded Investment 0   0   29
Impaired loans without a valuation allowance, Unpaid Principal Balance 0   0   33
Impaired loans with a valuation allowance, Recorded Investment 0   0   87
Impaired loans with a valuation allowance, Unpaid Principal Balance 0   0   87
Impaired loans with a valuation allowance, Related Allowance 0   0   66
Impaired loans without a valuation allowance, Average Recorded Investment 0 16 14 8  
Impaired loans without a valuation allowance, Interest Income Recognized 0 1 1 1  
Impaired loans with a valuation allowance, Average Recorded Investment 0 73 28 68  
Impaired loans with a valuation allowance, Interest Income Recognized 0 1 0 3  
Purchased Credit Impaired Loans [Member]          
Financing Receivable, Impaired [Line Items]          
Impaired loans with a valuation allowance, Recorded Investment 3,722   3,722   0
Impaired loans with a valuation allowance, Unpaid Principal Balance 4,095   4,095   0
Impaired loans with a valuation allowance, Related Allowance 116   116   0
Impaired loans with a valuation allowance, Average Recorded Investment 3,671 29 2,745 11  
Impaired loans with a valuation allowance, Interest Income Recognized 0 0 (7) 3  
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member]          
Financing Receivable, Impaired [Line Items]          
Impaired loans with a valuation allowance, Recorded Investment 2,516   2,516    
Impaired loans with a valuation allowance, Unpaid Principal Balance 2,834   2,834   0
Impaired loans with a valuation allowance, Related Allowance 35   35   0
Impaired loans with a valuation allowance, Average Recorded Investment 2,520 29 1,894 11  
Impaired loans with a valuation allowance, Interest Income Recognized 0 0 (10) 3  
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member]          
Financing Receivable, Impaired [Line Items]          
Impaired loans with a valuation allowance, Recorded Investment 1,206   1,206    
Impaired loans with a valuation allowance, Unpaid Principal Balance 1,261   1,261   0
Impaired loans with a valuation allowance, Related Allowance 81   81   $ 0
Impaired loans with a valuation allowance, Average Recorded Investment 1,151 0 851 0  
Impaired loans with a valuation allowance, Interest Income Recognized $ 0 $ 0 $ 3 $ 0  
v3.19.3
Loans and Allowance for Loan Losses - Purchased Credit Impaired Loans (Details) - Purchased Credit Impaired Loans [Member] - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Total loans $ 42,664 $ 48,404
Less: Remaining purchase discount (12,193) (14,246)
Total loans, net of purchase discount 30,471 34,158
Less: Allowance for loan losses (116) 0
Carrying amount, net of allowance 30,355 34,158
Commercial Real Estate [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Total loans 24,651 24,849
Consumer Real Estate [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Total loans 9,127 11,108
Construction and Land Development [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Total loans 2,697 5,731
Commercial and Industrial [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Total loans 5,633 5,824
Consumer and Other [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Total loans $ 556 $ 892
v3.19.3
Loans and Allowance for Loan Losses - Accretable Yield Roll Forward (Details) - Purchased Credit Impaired Loans [Member] - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]        
Accretable yield, beginning of period $ 8,280 $ 7,206 $ 7,052 $ 9,287
Additions 0 0 0 1,292
Accretion income (1,073) (746) (3,353) (3,776)
Reclassification 1,033 2,516 2,392 2,898
Other changes, net 390 243 2,539 (482)
Accretable yield, end of period $ 8,630 $ 9,219 $ 8,630 $ 9,219
v3.19.3
Commitments and Contingent Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]    
Commitments to extend credit $ 383,315 $ 333,900
Standby letters of credit $ 8,021 $ 12,200
v3.19.3
Fair Value Disclosures - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value $ 171,507 $ 201,688
Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 171,507 201,688
Derivative financial instruments 4,456 1,174
U.S. Government-sponsored enterprises (GSEs) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 19,018 43,503
Municipal securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 60,081 55,161
Other debt securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 3,445 910
Fair Value, Recurring [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 171,507 201,688
Derivative financial instruments 4,456 1,174
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 0 0
Derivative financial instruments 0 0
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 171,507 201,688
Derivative financial instruments 4,456 1,174
Fair Value, Recurring [Member] | Significant Other Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 0 0
Derivative financial instruments 0 0
Fair Value, Recurring [Member] | U.S. Government-sponsored enterprises (GSEs) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 19,018 43,503
Fair Value, Recurring [Member] | U.S. Government-sponsored enterprises (GSEs) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 0 0
Fair Value, Recurring [Member] | U.S. Government-sponsored enterprises (GSEs) [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 19,018 43,503
Fair Value, Recurring [Member] | U.S. Government-sponsored enterprises (GSEs) [Member] | Significant Other Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 0 0
Fair Value, Recurring [Member] | Municipal securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 60,081 55,161
Fair Value, Recurring [Member] | Municipal securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 0 0
Fair Value, Recurring [Member] | Municipal securities [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 60,081 55,161
Fair Value, Recurring [Member] | Municipal securities [Member] | Significant Other Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 0 0
Fair Value, Recurring [Member] | Other debt securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 3,445 910
Fair Value, Recurring [Member] | Other debt securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 0 0
Fair Value, Recurring [Member] | Other debt securities [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 3,445 910
Fair Value, Recurring [Member] | Other debt securities [Member] | Significant Other Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 0 0
Fair Value, Recurring [Member] | Mortgage-backed securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 88,963 102,114
Fair Value, Recurring [Member] | Mortgage-backed securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 0 0
Fair Value, Recurring [Member] | Mortgage-backed securities [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value 88,963 102,114
Fair Value, Recurring [Member] | Mortgage-backed securities [Member] | Significant Other Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Securities available-for-sale, at fair value $ 0 $ 0
v3.19.3
Fair Value Disclosures - Assets and Liabilities Measured on Nonrecurring Basis (Details) - Fair Value, Nonrecurring [Member] - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Impaired loans $ 3,822 $ 671
Other real estate owned 1,561 2,495
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Impaired loans 0 0
Other real estate owned 0 0
Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Impaired loans 0 0
Other real estate owned 0 0
Significant Other Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Impaired loans 3,822 671
Other real estate owned $ 1,561 $ 2,495
v3.19.3
Fair Value Disclosures Fair Value Disclosures - Unobservable Inputs (Details) - Fair Value, Nonrecurring [Member]
$ in Thousands
Sep. 30, 2019
USD ($)
Dec. 31, 2018
USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Impaired loans $ 3,822 $ 671
Other real estate owned 1,561 2,495
Level 3 [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Impaired loans 3,822 671
Other real estate owned 1,561 2,495
Appraisal And Discounted Cash Flow [Member] | Level 3 [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Impaired loans $ 3,822  
Appraisal And Discounted Cash Flow [Member] | Measurement Input, Discount Rate [Member] | Weighted Average [Member] | Level 3 [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Impaired loans, measurement input 0.16  
Appraisal [Member] | Level 3 [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Impaired loans   671
Other real estate owned $ 1,561 $ 2,495
Appraisal [Member] | Measurement Input, Discount Rate [Member] | Weighted Average [Member] | Level 3 [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Impaired loans, measurement input   0.44
Other real estate owned, measurement input 0.08 0.23
v3.19.3
Fair Value Disclosures - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Assets:    
Securities available-for-sale, at fair value $ 171,507 $ 201,688
Liabilities:    
Noninterest-bearing demand deposits 365,024 319,861
Interest-bearing demand deposits 351,474 311,482
Time deposits 646,641 648,676
Level 1 [Member]    
Assets:    
Cash and cash equivalents 170,934 115,822
Level 2 [Member]    
Assets:    
Securities available-for-sale, at fair value 171,507 201,688
Liabilities:    
Noninterest-bearing demand deposits 365,024 319,861
Interest-bearing demand deposits 351,474 311,482
Money market and savings deposits 634,934 641,945
Time deposits 647,780 649,169
Securities sold under agreements to repurchase 4,368 11,756
Federal Home Loan Bank advances and other borrowings 25,460 11,243
Derivative financial instruments 4,456 1,174
Level 3 [Member]    
Assets:    
Loans, net 1,849,197 1,766,838
Liabilities:    
Subordinated debt 37,379 39,190
Carrying Amount [Member]    
Assets:    
Cash and cash equivalents 170,934 115,822
Securities available-for-sale, at fair value 171,507 201,688
Other investments 12,913 11,499
Loans, net 1,857,955 1,768,964
Liabilities:    
Noninterest-bearing demand deposits 365,024 319,861
Interest-bearing demand deposits 351,474 311,482
Money market and savings deposits 634,934 641,945
Time deposits 646,641 648,676
Securities sold under agreements to repurchase 4,368 11,756
Federal Home Loan Bank advances and other borrowings 25,460 11,243
Subordinated debt 39,240 39,177
Derivative financial instruments 4,456 1,174
Estimated Fair Value [Member]    
Assets:    
Cash and cash equivalents 170,934 115,822
Securities available-for-sale, at fair value 171,507 201,688
Loans, net 1,849,197 1,766,838
Liabilities:    
Noninterest-bearing demand deposits 365,024 319,861
Interest-bearing demand deposits 351,474 311,482
Money market and savings deposits 634,934 641,945
Time deposits 647,780 649,169
Securities sold under agreements to repurchase 4,368 11,756
Federal Home Loan Bank advances and other borrowings 25,460 11,243
Subordinated debt 37,379 39,190
Derivative financial instruments $ 4,456 $ 1,174
v3.19.3
Derivatives - Fair Value Hedges on Balance Sheet (Details) - Interest Rate Swap, Liability [Member] - Designated as Hedging Instrument [Member] - USD ($)
9 Months Ended 12 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Derivatives, Fair Value [Line Items]    
Weighted average remaining maturity 8 years 5 months 12 days 9 years 2 months 23 days
Weighted Average Pay Rate 3.09% 3.10%
Derivative liability, notional amount $ 36,000,000 $ 35,000,000
Hedged liability, fair value $ (4,456,000) $ (1,174,000)
v3.19.3
Derivatives - Fair Value Hedges on Income Statement (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Derivative Instruments, Gain (Loss) [Line Items]        
Reported interest income on tax-exempt securities $ 338 $ 129 $ 1,173 $ 240
Interest Rate Swap [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Interest rate swap agreements - securities: 1,045 7 3,282 7
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Interest rate swap agreements - securities: (1,045) (7) (3,282) (7)
Fair Value Hedging [Member] | Designated as Hedging Instrument [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Interest income on tax-exempt securities 400 247 1,305 247
Effects of fair value hedge relationships (62) (7) (132) (7)
Reported interest income on tax-exempt securities $ 338 $ 240 $ 1,173 $ 240
v3.19.3
Derivatives - Fair Value Hedges in Balance Sheet (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Carrying Amount of the Hedged Assets $ 43,808 $ 39,730
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets $ 4,456 $ 1,174
v3.19.3
Leases - Lease Assets and Liabilities (Details)
$ in Thousands
Sep. 30, 2019
USD ($)
Leases [Abstract]  
Operating lease right-of-use assets $ 2,134
Operating lease liabilities $ 2,150
v3.19.3
Leases - Narrative (Details)
Sep. 30, 2019
Leases [Abstract]  
Weighted average remaining lease term 7 years 5 months 20 days
Weighted average discount rate 3.24%
v3.19.3
Leases - Lease Costs and Other Information (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Lease Costs    
Operating lease costs $ 149 $ 464
Short-term lease costs 2 13
Variable lease costs 23 69
Total 174 546
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows from operating leases $ 145 $ 447
v3.19.3
Leases - Future Minimum Payments (Details)
$ in Thousands
Sep. 30, 2019
USD ($)
Leases [Abstract]  
September 30, 2020 $ 521
September 30, 2021 487
September 30, 2022 250
September 30, 2023 140
September 30, 2024 67
Thereafter 685
Total future minimum lease payments 2,150
Amounts representing interest (311)
Present value of net future minimum lease payments $ 1,839
v3.19.3
Subsequent Events (Details) - USD ($)
6 Months Ended
Nov. 06, 2019
Jun. 30, 2020
Sep. 30, 2019
Dec. 31, 2018
Subsequent Event [Line Items]        
Common stock, par value (in dollars per share)     $ 1 $ 1
Subsequent Event [Member]        
Subsequent Event [Line Items]        
Dividends declared (in dollars per share) $ 0.05      
Forecast [Member] | Subsequent Event [Member] | Progressive Financial Group Inc. [Member]        
Subsequent Event [Line Items]        
Cash consideration paid   $ 14,595,354.37    
Common stock issued (in shares)   1,292,592.556    
Common stock, par value (in dollars per share)   $ 1.00    
Cash to be paid upon conversion (in dollars per share)   $ 704.375    
Common shares to be converted (in shares)   62.3808