SMARTFINANCIAL INC., 10-Q filed on 5/15/2017
Quarterly Report
v3.7.0.1
Document And Entity Information - shares
3 Months Ended
Mar. 31, 2017
May 12, 2017
Document And Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2017  
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q1  
Entity Registrant Name SMARTFINANCIAL INC.  
Entity Central Index Key 0001038773  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Trading Symbol SMBK  
Entity Common Stock, Shares Outstanding   8,212,602
v3.7.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
Mar. 31, 2017
Dec. 31, 2016
ASSETS    
Cash and due from banks $ 22,093,186 $ 34,290,617
Interest-bearing deposits at other financial institutions 33,454,535 34,457,691
Total cash and cash equivalents 55,547,721 68,748,308
Securities available for sale 137,132,626 129,421,914
Restricted investments, at cost 5,627,950 5,627,950
Loans, net of allowance for loan losses of $5,152,261 at March 31, 2017 and $5,105,255 at December 31, 2016 802,387,400 808,271,003
Bank premises and equipment, net 30,802,210 30,535,594
Foreclosed assets 2,370,556 2,386,239
Goodwill and core deposit intangible, net 6,583,077 6,635,655
Other assets 10,634,241 10,829,622
Total assets 1,051,085,781 1,062,456,285
Deposits:    
Noninterest-bearing demand deposits 160,672,567 153,482,650
Interest-bearing demand deposits 167,433,130 162,702,457
Money market and savings deposits 274,993,376 274,604,724
Time deposits 286,600,177 316,275,340
Total deposits 889,699,250 907,065,171
Securities sold under agreement to repurchase 23,153,397 26,621,984
Federal Home Loan Bank advances and other borrowings 60,000 18,505,390
Accrued expenses and other liabilities 5,622,319 5,023,600
Total liabilities 918,534,966 957,216,145
Stockholders' equity:    
Preferred stock - $1 par value; 2,000,000 shares authorized; None issued and outstanding in 2017. 12,000 issued and outstanding in 2016. 0 12,000
Common stock - $1 par value; 40,000,000 shares authorized; 8,211,102 and 5,896,033 shares issued and outstanding in 2017 and 2016, respectively 8,211,102 5,896,033
Additional paid-in capital 106,702,972 83,463,051
Retained earnings 18,320,147 16,871,296
Accumulated other comprehensive loss (683,406) (1,002,240)
Total stockholders' equity 132,550,815 105,240,140
Total liabilities and stockholders' equity $ 1,051,085,781 $ 1,062,456,285
v3.7.0.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]    
Allowance for loan losses (in dollars) $ 5,152 $ 5,105
Preferred Stock, Par value (in dollars per share) $ 1 $ 1
Preferred stock, shares authorized 2,000,000 2,000,000
Preferred stock, shares issued 0 12,000
Preferred stock, shares outstanding 0 12,000
Common stock, par value (in dollars per share) $ 1 $ 1
Common stock, shares authorized 40,000,000 40,000,000
Common stock, shares issued 8,211,102 5,896,033
Common stock, shares outstanding 8,211,102 5,896,033
v3.7.0.1
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
INTEREST INCOME    
Loans, including fees $ 10,215,607 $ 9,374,457
Securities and interest-bearing deposits at other financial institutions 660,819 716,580
Federal funds sold and other earning assets 72,897 63,309
Total interest income 10,949,323 10,154,346
INTEREST EXPENSE    
Deposits 1,097,538 961,268
Securities sold under agreements to repurchase 15,951 16,460
Federal Home Loan Bank advances and other borrowings 15,475 45,286
Total interest expense 1,128,964 1,023,014
Net interest income before provision for loan losses 9,820,359 9,131,332
Provision for loan losses 12,450 137,557
Net interest income after provision for loan losses 9,807,909 8,993,775
NONINTEREST INCOME    
Customer service fees 264,673 295,803
Gain on sale of securities 0 83,263
Gain on sale of loans and other assets 275,165 221,925
(Loss) gain on sale of foreclosed assets (15,564) 57,977
Other noninterest income 402,434 411,864
Total noninterest income 926,708 1,070,832
NONINTEREST EXPENSES    
Salaries and employee benefits 4,646,749 4,495,008
Net occupancy and equipment expense 978,459 1,018,428
Depository insurance 153,299 135,803
Foreclosed assets 0 56,658
Advertising 164,262 173,447
Data processing 339,815 341,380
Professional services 569,841 455,173
Amortization of intangible assets 52,578 93,353
Service contracts 295,629 285,627
Other operating expenses 944,280 897,021
Total noninterest expenses 8,144,912 7,951,898
Income before income tax expense 2,589,705 2,112,709
Income tax expense 945,854 763,846
Net income 1,643,851 1,348,863
Preferred stock dividends 195,000 212,000
Net income available to common stockholders $ 1,448,851 $ 1,136,863
EARNINGS PER COMMON SHARE    
Basic (in dollars per share) $ 0.19 $ 0.20
Diluted (in dollars per share) $ 0.19 $ 0.19
Weighted average common shares outstanding    
Basic (in shares) 7,524,830 5,807,488
Diluted (in shares) 7,631,219 6,108,087
Dividends per share (in dollars per share) $ 0 $ 0
v3.7.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Statement of Comprehensive Income [Abstract]    
Net income $ 1,643,851 $ 1,348,863
Other comprehensive income, net of tax:    
Unrealized holding gains arising during the period, net of tax expense of $197,831 and $381,291 in 2017 and 2016, respectively 318,834 614,708
Reclassification adjustment for gains included in net income, net of tax expense of $- and $31,640 in 2017 and 2016, respectively 0 (51,623)
Total other comprehensive income 318,834 563,085
Comprehensive income $ 1,962,685 $ 1,911,948
v3.7.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Statement of Comprehensive Income [Abstract]    
Unrealized holding gains arising during the period, tax expense (benefit) $ 197,831 $ 381,291
Reclassification adjustment for (gains) losses included in net income, tax expense $ 0 $ 31,640
v3.7.0.1
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - 3 months ended Mar. 31, 2017 - USD ($)
Total
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
BALANCE at Dec. 31, 2016 $ 105,240,140 $ 12,000 $ 5,896,033 $ 83,463,051 $ 16,871,296 $ (1,002,240)
BALANCE (in shares) at Dec. 31, 2016   12,000 5,896,033      
Net income 1,643,851 $ 0 $ 0 0 1,643,851 0
Other comprehensive income 318,834 0 0 0 0 318,834
Issuance of common stock 33,223,653   $ 1,840,000 31,383,653    
Issuance of common stock (in shares)     1,840,000      
Issuance of stock grants 31,791   $ 1,511 30,280    
Issuance of stock grants (in shares)     1,511      
Exercise of stock options 4,260,734 $ 0 $ 473,558 3,787,176 0 0
Exercise of stock options (in shares)   0 473,558      
Cash dividend on preferred stock (195,000) $ 0 $ 0 0 (195,000) 0
Redemption of preferred stock (12,000,000) $ (12,000)   (11,988,000)    
Redemption of preferred stock (in shares)   (12,000)        
Stock compensation expense 26,812 $ 0 0 26,812 0 0
BALANCE at Mar. 31, 2017 $ 132,550,815 $ 0 $ 8,211,102 $ 106,702,972 $ 18,320,147 $ (683,406)
BALANCE (in shares) at Mar. 31, 2017   0 8,211,102      
v3.7.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 1,643,851 $ 1,348,863
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 549,186 525,809
Provision for loan losses 12,450 137,557
Stock compensation expense 26,812 33,635
Gains from sale of securities 0 (83,263)
Net gains from sale of loans and other assets (275,165) (221,925)
Net loss (gains) from sale of foreclosed assets 15,564 (57,977)
Changes in other assets and liabilities:    
Accrued interest receivable 160,042 106,932
Accrued interest payable 2,373 10,061
Other assets and liabilities 486,433 2,061,243
Net cash provided by operating activities 2,621,546 3,860,935
CASH FLOWS FROM INVESTING ACTIVITIES    
Proceeds from security sales, maturities, and paydowns 5,152,054 9,652,595
Purchase of securities (12,507,860) 0
Purchase of restricted investments 0 (200)
Loan originations and principal collections, net 6,106,801 (12,967,236)
Purchase of bank premises and equipment (654,044) (971,967)
Proceeds from sale of foreclosed assets 39,636 283,221
Net cash used in investing activities (1,863,413) (4,003,587)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net increase (decrease) in deposits (17,365,921) 628,670
Net decrease in securities sold under agreements to repurchase (3,468,587) (7,321,193)
Issuance of common stock 37,516,178 77,707
Redemption of preferred stock (12,000,000) 0
Payment of dividends on preferred stock (195,000) (212,000)
Proceeds from Federal Home Loan Bank advances and other borrowings 60,375 18,000,000
Repayment of Federal Home Loan Bank advances and other borrowings (18,505,765) (22,062,293)
Net cash used in financing activities (13,958,720) (10,889,109)
NET DECREASE IN CASH AND CASH EQUIVALENTS (13,200,587) (11,031,761)
CASH AND CASH EQUIVALENTS, beginning of year 68,748,308 79,964,633
CASH AND CASH EQUIVALENTS, end of period 55,547,721 68,932,872
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Cash paid during the period for interest 1,126,591 1,012,953
Cash paid during the period for taxes 0 0
NONCASH INVESTING AND FINANCING ACTIVITIES    
Change in unrealized losses on securities available for sale (516,665) (912,736)
Acquisition of real estate through foreclosure 39,517 0
Financed sales of foreclosed assets $ 0 $ 0
v3.7.0.1
Presentation of Financial Information
3 Months Ended
Mar. 31, 2017
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 eastern Tennessee, northwest Florida, and north Georgia. The Company’s primary deposit products are interest-bearing demand deposits and certificates of deposit. Its primary lending products are commercial, residential, and consumer loans.
 
Interim Financial Information (Unaudited):
 
The financial information in this report for March 31, 2017 and March 31, 2016 has not been audited. The information included herein should be read in conjunction with the Company’s 2016 annual consolidated financial statements and footnotes included elsewhere. The consolidated financial statements presented herein conform to U.S. generally accepted accounting principles and to general industry practices. In the opinion of SmartFinancial’s management, the accompanying interim financial statements contain all material adjustments necessary to present fairly the 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.
 
Basis of Presentation and Accounting Estimates:
 
All adjustments consisting of normal recurring accruals, that in the opinion of management, are necessary for a fair presentation of the financial position and the results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with those appearing the in the 2016 Annual Report previously filed on Form 10-K.
 
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 accounting principles generally accepted in the United States of America, 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, and the fair value of financial instruments.
 
The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral.
 
The Company’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on local economic conditions.
 
While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.
 

 
Note 1. Presentation of Financial Information, Continued

Recently Issued 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, 2016 as filed with the Securities and Exchange Commission. The following is a summary of recent authoritative pronouncements not yet effective that could impact the accounting, reporting, and/or disclosure of financial information by the Company issued since December 31, 2016.

In January 2017, FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The ASU clarifies the definition of a business to assist with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements.

In January 2017, FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The Company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect these amendments to have a material effect on its financial statements.

In March 2017, FASB issued 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 amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. This update should be adopted on a modified retrospective basis with a cumulative-effect adjustment to retained earnings on the date of adoption. The Company does not expect these amendments to have a material effect on its financial statements.
 
Earnings per common share:
 
Basic earnings per common share represents income available to common stockholders 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. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method.
v3.7.0.1
Earnings per share
3 Months Ended
Mar. 31, 2017
Earnings Per Share [Abstract]  
Earnings per share
Earnings per share
 
The following is a summary of the basic and diluted earnings per share for the three month periods ended March 31, 2017 and March 31, 2016.
 
 
 
Three Months Ended March 31,
 
 
2017
 
2016
Net income available to common shareholders
 
$
1,448,851

 
$
1,136,863

Weighted average common shares outstanding
 
7,524,830

 
5,807,488

Effect of dilutive stock options
 
106,389

 
300,599

Diluted shares
 
7,631,219

 
6,108,087

Basic earnings per common share
 
$
0.19

 
$
0.20

Diluted earnings per common share
 
$
0.19

 
$
0.19


Note 2. Earnings per share, Continued
 
For the three months ended March 31, 2017 and 2016, the effects of outstanding antidilutive stock options are excluded from the computation of diluted earnings per common share because the exercise price of such options is higher than the market price. There were 14,604 and 18,100 antidilutive stock options as of March 31, 2017 and 2016, respectively.
v3.7.0.1
Securities
3 Months Ended
Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Securities
Securities
 
The amortized cost and fair value of securities available-for-sale at March 31, 2017 and December 31, 2016 are summarized as follows (in thousands):
 
 
 
March 31, 2017
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Government-sponsored enterprises (GSEs)
 
$
18,261

 
$
5

 
$
(468
)
 
$
17,798

Municipal securities
 
8,434

 
23

 
(119
)
 
8,338

Other debt securities
 
972

 

 
(26
)
 
946

Mortgage-backed securities
 
110,573

 
228

 
(750
)
 
110,051

 
 
$
138,240

 
$
256

 
$
(1,363
)
 
$
137,133

 
 
 
December 31, 2016
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Government-sponsored enterprises (GSEs)
 
$
18,279

 
$
8

 
$
(564
)
 
$
17,723

Municipal securities
 
8,182

 
16

 
(179
)
 
8,019

Mortgage-backed securities
 
104,585

 
185

 
(1,090
)
 
103,680

 
 
$
131,046

 
$
209

 
$
(1,833
)
 
$
129,422


 
At March 31, 2017, securities with a fair value totaling approximately $81,068,000 were pledged to secure public funds and securities sold under agreements to repurchase.
 
For the three months ended March 31, 2017, there were no available-for-sale securities sold. For the three months ended March 31, 2016 there were available-for-sale securities sold with proceeds totaling $5,072,500 which resulted in gross gains realized of $83,263 and gross losses of $-.
 
The amortized cost and estimated fair value of securities at March 31, 2017, by contractual maturity, are shown below (in thousands). Expected maturities will 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
 
$
3,011

 
$
3,011

Due from one year to five years
 
12,391

 
12,048

Due from five years to ten years
 
8,543

 
8,341

Due after ten years
 
3,722

 
3,682

 
 
27,667

 
27,082

Mortgage-backed securities
 
110,573

 
110,051

 
 
$
138,240

 
$
137,133


 
Note 3. Securities, Continued

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, as of March 31, 2017 and December 31, 2016 (in thousands):
 
 
 
As of March 31, 2017
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
U.S. Government- sponsored enterprises (GSEs)
 
14,379

 
(468
)
 

 

 
14,379

 
(468
)
Municipal securities
 
5,115

 
(118
)
 
254

 
(1
)
 
5,369

 
(119
)
Other debt securities
 
945

 
(26
)
 

 

 
945

 
(26
)
Mortgage-backed securities
 
62,827

 
(380
)
 
12,129

 
(370
)
 
74,956

 
(750
)
 
 
83,266

 
(992
)
 
12,383

 
(371
)
 
95,649

 
(1,363
)
 
 
 
As of December 31, 2016
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
U.S. Government- sponsored enterprises (GSEs)
 
$
14,702

 
$
(564
)
 
$

 
$

 
$
14,702

 
$
(564
)
Municipal securities
 
6,368

 
(179
)
 

 

 
6,368

 
(179
)
Mortgage-backed securities
 
67,063

 
(690
)
 
8,948

 
(400
)
 
76,011

 
(1,090
)
 
 
$
88,133

 
$
(1,433
)
 
$
8,948

 
$
(400
)
 
$
97,081

 
$
(1,833
)

  
At March 31, 2017, the categories of temporarily impaired securities, and management’s evaluation of those securities, are as follows:
  
U.S. Government-sponsored enterprises: At March 31, 2017, 5 (or five) investment in U.S. GSE securities had unrealized losses. These unrealized losses related principally to changes in market interest rates. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Bank does not intend to sell the investments and it is more likely than not that the Bank will not be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other-than temporarily impaired at March 31, 2017.

Municipal securities: At March 31, 2017, 13 (or thirteen) investments in obligations of municipal securities had unrealized losses. The Bank believes the unrealized losses on those investments were caused by the interest rate environment and do not relate to the underlying credit quality of the issuers. Because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not consider these investments to be other-than temporarily impaired at March 31, 2017.

Other debt securities: At March 31, 2017, 1 (or one) investment in other debt securities had unrealized losses. The Bank believes the unrealized loss on this investment was caused by the interest rate environment and does not relate to the underlying credit quality of the issuer. Because the Bank does not intend to sell the investment and it is not more likely than not that the Bank will be required to sell the investment before recovery of its amortized cost bases, which may be maturity, the Bank does not consider this investment to be other-than temporarily impaired at March 31, 2017.

Note 3. Securities, Continued

Mortgage-backed securities: At March 31, 2017, 57 (or fifty seven) investments in residential mortgage-backed securities had unrealized losses.  This impairment is believed to be caused by the current interest rate environment.  The contractual cash flows of those investments are guaranteed by an agency of the U.S. Government.  Because the decline in market value is attributable to the current interest rate environment and not credit quality, and because the Bank does not intend to sell the investments and it is not more likely than not that the Bank will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Bank does not deem these investments to be other-than-temporarily impaired at March 31, 2017.
v3.7.0.1
Loans and Allowance for Loan Losses
3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Loans and Allowance for Loan Losses
Loans and Allowance for Loan Losses
 
Portfolio Segmentation:
 
At March 31, 2017 and December 31, 2016, loans are summarized as follows (in thousands):
 
 
 
March 31, 2017
 
December 31, 2016
 
 
PCI Loans
 
All Other
Loans
 
Total
 
PCI 
Loans
 
All Other
Loans
 
Total
Commercial real estate
 
$
14,683

 
$
393,216

 
$
407,899

 
$
14,943

 
$
400,265

 
$
415,208

Consumer real estate
 
8,874

 
177,471

 
186,345

 
9,004

 
178,798

 
187,802

Construction and land development
 
1,506

 
114,168

 
115,674

 
1,678

 
116,191

 
117,869

Commercial and industrial
 
1,538

 
89,169

 
90,707

 
1,568

 
83,454

 
85,022

Consumer and other
 

 
6,914

 
6,914

 

 
7,475

 
7,475

Total loans
 
26,601

 
780,938

 
807,539

 
27,193

 
786,183

 
813,376

Less:  Allowance for loan losses
 

 
(5,152
)
 
(5,152
)
 

 
(5,105
)
 
(5,105
)
Loans, net
 
$
26,601

 
$
775,786

 
$
802,387

 
$
27,193

 
$
781,078

 
$
808,271


 
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 following describe risk characteristics relevant to each of the portfolio segments:
 
Commercial Real Estate: Commercial real estate loans include owner-occupied commercial real estate loans and loans secured by income-producing properties. Owner-occupied commercial real estate loans to operating businesses are long-term financing of land and buildings. These loans are repaid by cash flow generated from the business operation. Real estate loans for income-producing properties such as apartment buildings, office and industrial buildings, and retail shopping centers are repaid from rent income derived from the properties. Loans within this portfolio segment are particularly sensitive to the valuation of real estate.
 
Consumer Real Estate: Consumer real estate loans include real estate loans secured by first liens, second liens, or open end real estate loans, such as home equity lines. These are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. One to four family first mortgage loans are repaid by various means such as a borrower's income, sale of the property, or rental income derived from the property. Loans within this portfolio segment are particularly sensitive to the valuation of real estate.
 
Construction and Land Development: Loans for real estate construction and development are repaid through cash flow related to the operations, sale or refinance of the underlying property. This portfolio segment includes extensions of credit to real estate developers or investors where repayment is dependent on the sale of the real estate or income generated from the real estate collateral. Loans within this portfolio segment are particularly sensitive to the valuation of real estate.
 
Commercial and Industrial: The commercial and industrial loan portfolio segment includes commercial, financial, and agricultural loans. These loans include those loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases, or expansion projects. Loans are repaid by business cash flows. Collection risk in this portfolio is driven by the creditworthiness of the underlying borrower, particularly cash flows from the customers' business operations.
 Note 4. Loans and Allowance for Loan Losses, Continued

Portfolio Segmentation (continued):

Consumer and Other: The consumer loan portfolio segment includes direct consumer installment loans, overdrafts and other revolving credit loans, and educational loans. Loans in this portfolio are sensitive to unemployment and other key consumer economic measures.

Credit Risk Management:
 
The Company employs a credit risk management process with defined policies, accountability and routine reporting to manage credit risk in the loan portfolio segments. Credit risk management is guided by credit policies that provide for a consistent and prudent approach to underwriting and approvals of credits. Within the Credit Policy, procedures exist that elevate the approval requirements as credits become larger and more complex. All loans are individually underwritten, risk-rated, approved, and monitored.
 
Responsibility and accountability for adherence to underwriting policies and accurate risk ratings lies in each portfolio segment. For the consumer real estate and consumer and other portfolio segments, the risk management process focuses on managing customers who become delinquent in their payments. For the other portfolio segments, the risk management process focuses on underwriting new business and, on an ongoing basis, monitoring the credit of the portfolios, including a third party review of the largest credits on an annual basis or more frequently as needed. To ensure problem credits are identified on a timely basis, several specific portfolio reviews occur periodically to assess the larger adversely rated credits for proper risk rating and accrual status.
 
Credit quality and trends in the loan portfolio segments are measured and monitored regularly. Detailed reports, by product, collateral, accrual status, etc., are reviewed by the Senior Credit Officer and the Directors Loan Committee.

The allowance for loan losses is a valuation reserve allowance established through provisions for loan losses charged against income. The allowance for loan losses, which is evaluated quarterly, is maintained at a level that management deems sufficient to absorb probable losses inherent in the loan portfolio. Loans deemed to be uncollectible are charged against the allowance for loan losses, while recoveries of previously charged-off amounts are credited to the allowance for loan losses. The allowance for loan losses is comprised of specific valuation allowances for loans evaluated individually for impairment and general allocations for pools of homogeneous loans with similar risk characteristics and trends.
 
The allowance for loan losses related to specific loans is based on management's estimate of potential losses on impaired loans as determined by (1) the present value of expected future cash flows; (2) the fair value of collateral if the loan is determined to be collateral dependent or (3) the loan's observable market price. The Company's homogeneous loan pools include commercial real estate loans, consumer real estate loans, construction and land development loans, commercial and industrial loans, and consumer and other loans. The general allocations to these loan pools are based on the historical loss rates for specific loan types and the internal risk grade, if applicable, adjusted for both internal and external qualitative risk factors.
 
The qualitative factors considered by management include, among other factors, (1) changes in local and national economic conditions; (2) changes in asset quality; (3) changes in loan portfolio volume; (4) the composition and concentrations of credit; (5) the impact of competition on loan structuring and pricing; (6) the impact of interest rate changes on portfolio risk and (7) effectiveness of the Company's loan policies, procedures and internal controls. The total allowance established for each homogeneous loan pool represents the product of the historical loss ratio adjusted for qualitative factors and the total dollar amount of the loans in the pool.
 
Note 4. Loans and Allowance for Loan Losses, Continued

Credit Risk Management (continued):

The composition of loans by loan classification for impaired and performing loan status at March 31, 2017 and December 31, 2016, is summarized in the tables below (amounts in thousands):
 
 
 
March 31, 2017
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Performing loans
 
$
392,978

 
$
176,478

 
$
113,534

 
$
88,960

 
$
6,914

 
$
778,864

Impaired loans
 
238

 
993

 
634

 
209

 

 
2,074

 
 
393,216

 
177,471

 
114,168

 
89,169

 
6,914

 
780,938

PCI loans
 
14,683

 
8,874

 
1,506

 
1,538

 

 
26,601

Total
 
$
407,899

 
$
186,345

 
$
115,674

 
$
90,707

 
$
6,914

 
$
807,539


 
 
December 31, 2016
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Performing loans
 
$
400,146

 
$
177,977

 
$
115,326

 
$
83,244

 
$
7,475

 
$
784,168

Impaired loans
 
119

 
821

 
865

 
210

 

 
2,015

 
 
400,265

 
178,798

 
116,191

 
83,454

 
7,475

 
786,183

PCI loans
 
14,943

 
9,004

 
1,678

 
1,568

 

 
27,193

Total loans
 
$
415,208

 
$
187,802

 
$
117,869

 
$
85,022

 
$
7,475

 
$
813,376



The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans as of March 31, 2017 and December 31, 2016 (amounts in thousands):
 
 
 
March 31, 2017
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and
Other
 
Total
Performing loans
 
$
2,329

 
$
1,398

 
$
706

 
$
554

 
$
93

 
$
5,080

Impaired loans
 

 
68

 

 
4

 

 
72

Total
 
$
2,329

 
$
1,466

 
$
706

 
$
558

 
$
93

 
$
5,152

 
 
 
December 31, 2016
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and
Other
 
Total
Performing loans
 
$
2,369

 
$
1,382

 
$
717

 
$
516

 
$
117

 
$
5,101

Impaired loans
 

 

 

 
4

 

 
4

Total
 
$
2,369

 
$
1,382

 
$
717

 
$
520

 
$
117

 
$
5,105


 
There was no allowance for PCI loans at March 31, 2017 or December 31, 2016.
 
Note 4. Loans and Allowance for Loan Losses, Continued

Credit Risk Management (continued):

The following tables detail the changes in the allowance for loan losses for the three month period ending March 31, 2017 and year ending December 31, 2016, by loan classification (amounts in thousands):
 
 
 
March 31, 2017
 
 
Commercial
Real Estate
 
Consumer
Real
Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Beginning balance
 
$
2,369

 
$
1,382

 
$
717

 
$
520

 
$
117

 
$
5,105

Loans charged off
 

 

 

 
(3
)
 
(22
)
 
(25
)
Recoveries of loans charged off
 
5

 
17

 
5

 
16

 
17

 
60

Provision (reallocation) charged to operating expense
 
(45
)
 
67

 
(16
)
 
25

 
(19
)
 
12

Ending balance
 
$
2,329

 
$
1,466

 
$
706

 
$
558

 
$
93

 
$
5,152


 
 
December 31, 2016
 
 
Commercial
Real Estate
 
Consumer
Real
Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Beginning balance
 
$
1,906

 
$
1,015

 
$
627

 
$
777

 
$
29

 
$
4,354

Loans charged off
 

 
(102
)
 
(14
)
 
(35
)
 
(155
)
 
(306
)
Recoveries of charge-offs
 
45

 
76

 
22

 
58

 
68

 
269

Provision (reallocation) charged to operating expense
 
418

 
393

 
82

 
(280
)
 
175

 
788

Ending balance
 
$
2,369

 
$
1,382

 
$
717

 
$
520

 
$
117

 
$
5,105



A description of the general characteristics of the risk grades used by the Company is as follows:
 
Pass: Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk grade would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the debt if required, for any weakness that may exist.
 
Special Mention: Loans in this risk grade are the equivalent of the regulatory definition of "Other Assets Especially Mentioned" classification. Loans in this category possess some credit deficiency or potential weakness, which requires a high level of management attention. Potential weaknesses include declining trends in operating earnings and cash flows and /or reliance on the secondary source of repayment. If left uncorrected, these potential weaknesses may result in noticeable deterioration of the repayment prospects for the asset or in the Company's credit position.
 
Substandard: Loans in this risk grade are inadequately protected by the borrower's current financial condition and payment capability or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.
 
Doubtful: Loans in this risk grade have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined.
 
Note 4. Loans and Allowance for Loan Losses, Continued

Credit Risk Management (continued):

Uncollectible: Loans in this risk grade are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Charge-offs against the allowance for loan losses are taken in the period in which the loan becomes uncollectible. Consequently, the Company typically does not maintain a recorded investment in loans within this category.

The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of March 31, 2017 and December 31, 2016 (amounts in thousands):

Non PCI Loans
 
 
March 31, 2017
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Pass
 
$
392,338

 
$
176,001

 
$
113,447

 
$
88,723

 
$
6,685

 
$
777,194

Watch
 
635

 
514

 
87

 
237

 

 
1,473

Special mention
 

 
103

 

 

 
229

 
332

Substandard
 
243

 
853

 
634

 
209

 

 
1,939

Doubtful
 

 

 

 

 

 

Total
 
$
393,216

 
$
177,471

 
$
114,168

 
$
89,169

 
$
6,914

 
$
780,938

 
PCI Loans
 
 
March 31, 2017
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Pass
 
$
11,617

 
$
6,816

 
$
848

 
$
1,309

 
$

 
$
20,590

Watch
 
890

 
1,280

 
645

 
19

 

 
2,834

Special mention
 

 

 

 
183

 

 
183

Substandard
 
2,176

 
778

 
13

 

 

 
2,967

Doubtful
 

 

 

 
27

 

 
27

Total
 
$
14,683

 
$
8,874

 
$
1,506

 
$
1,538

 
$

 
$
26,601

Total loans
 
$
407,899

 
$
186,345

 
$
115,674

 
$
90,707

 
$
6,914

 
$
807,539


Non PCI Loans
 
 
December 31, 2016
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Pass
 
$
399,505

 
$
177,466

 
$
115,237

 
$
82,992

 
$
7,238

 
$
782,438

Watch
 
640

 
550

 
89

 
252

 

 
1,531

Special mention
 

 
104

 

 

 
237

 
341

Substandard
 
120

 
678

 
865

 
210

 

 
1,873

Doubtful
 

 

 

 

 

 

Total
 
$
400,265

 
$
178,798

 
$
116,191

 
$
83,454

 
$
7,475

 
$
786,183

  
Note 4. Loans and Allowance for Loan Losses, Continued

Credit Risk Management (continued):

PCI Loans
 
 
December 31, 2016
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Pass
 
$
11,836

 
$
6,811

 
$
1,019

 
$
1,507

 
$

 
$
21,173

Watch
 
1,045

 
1,577

 
645

 
22

 

 
3,289

Special mention
 

 

 

 
12

 

 
12

Substandard
 
2,062

 
616

 
14

 

 

 
2,692

Doubtful
 

 

 

 
27

 

 
27

Total
 
$
14,943

 
$
9,004

 
$
1,678

 
$
1,568

 
$

 
$
27,193

Total loans
 
$
415,208

 
$
187,802

 
$
117,869

 
$
85,022

 
$
7,475

 
$
813,376



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 the aging of the recorded investment in loans as of March 31, 2017 and December 31, 2016 (amounts in thousands): 

 
 
March 31, 2017
 
 
30-89 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
 
$
196

 
$

 
$
124

 
$
320

 
$
14,683

 
$
392,896

 
$
407,899

Consumer real estate
 
1,180

 

 
523

 
1,703

 
8,874

 
175,768

 
186,345

Construction and land development
 
34

 

 
634

 
668

 
1,506

 
113,500

 
115,674

Commercial and industrial
 
359

 
27

 
164

 
550

 
1,538

 
88,619

 
90,707

Consumer and other
 
20

 

 

 
20

 

 
6,894

 
6,914

Total
 
$
1,789

 
$
27

 
$
1,445

 
$
3,261

 
$
26,601

 
$
777,677

 
$
807,539


Note 4. Loans and Allowance for Loan Losses, Continued

Past Due Loans (continued):

 
 
December 31, 2016
 
 
30-89 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
 
$
395

 
$

 
$

 
$
395

 
$
14,943

 
$
399,870

 
$
415,208

Consumer real estate
 
695

 
699

 
386

 
1,780

 
9,004

 
177,018

 
187,802

Construction and land development
 
690

 

 
865

 
1,555

 
1,678

 
114,636

 
117,869

Commercial and industrial
 
257

 

 
164

 
421

 
1,568

 
83,033

 
85,022

Consumer and other
 
17

 

 

 
17

 

 
7,458

 
7,475

Total
 
$
2,054

 
$
699

 
$
1,415

 
$
4,168

 
$
27,193

 
$
782,015

 
$
813,376



Impaired Loans:

The following is an analysis of the impaired loan portfolio, excluding PCI loans, detailing the related allowance recorded as of March 31, 2017 and December 31, 2016 (amounts in thoudands):  
 
 
 
 
 
 
 
 
For the three months ended
 
 
At March 31, 2017
 
March 31, 2017
 
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Impaired loans without a valuation allowance:
 
 

 
 

 
 

 
 

 
 

Commercial real estate
 
$
238

 
$
241

 
$

 
$
179

 
$
3

Consumer real estate
 
368

 
383

 

 
595

 
6

Construction and land development
 
634

 
634

 

 
750

 

Commercial and industrial
 
45

 
45

 

 
46

 
1

Consumer and other
 

 

 

 

 

 
 
1,285

 
1,303

 

 
1,570

 
10

 
 
 
 
 
 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 

 
 

 
 

 
 

 
 

Commercial real estate
 

 

 

 

 

Consumer real estate
 
625

 
644

 
68

 
313

 
5

Construction and land development
 

 

 

 

 

Commercial and industrial
 
164

 
243

 
4

 
164

 

Consumer and other
 

 

 

 

 

 
 
789

 
887

 
72

 
477

 
5

Total impaired loans
 
$
2,074

 
$
2,190

 
$
72

 
$
2,047

 
$
15



Note 4. Loans and Allowance for Loan Losses, Continued

Impaired Loans (continued):

 
 
 
 
 
 
 
 
For the year ended
 
 
At December 31, 2016
 
December 31, 2016
 
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Impaired loans without a valuation allowance:
 
 

 
 

 
 

 
 

 
 

Commercial real estate
 
$
119

 
$
119

 
$

 
$
1,311

 
$
73

Consumer real estate
 
821

 
849

 

 
2,334

 
100

Construction and land development
 
865

 
865

 

 
967

 
3

Commercial and industrial
 
46

 
46

 

 
47

 
4

Consumer and other
 

 

 

 

 

 
 
1,851

 
1,879

 

 
4,659

 
180

 
 
 
 
 
 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 

 
 

 
 

 
 

 
 

Commercial real estate
 

 

 

 

 

Consumer real estate
 

 

 

 

 

Construction and land development
 

 

 

 

 

Commercial and industrial
 
164

 
243

 
4

 
306

 
70

Consumer and other
 

 

 

 

 

 
 
164

 
243

 
4

 
306

 
70

Total impaired loans
 
$
2,015

 
$
2,122

 
$
4

 
$
4,965

 
$
250


 
Troubled Debt Restructurings:
 
At March 31, 2017 and December 31, 2016, 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 March 31, 2017 and December 31, 2016, management had approximately, $552,000 and $608,000, respectively, in loans that met the criteria for restructured, which included approximately $251,000 and $442,000, respectively, of loans on nonaccrual. A loan is placed back on accrual status when both principal and interest are current and it is probable that management will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement.

Note 4. Loans and Allowance for Loan Losses, Continued

Troubled Debt Restructurings (continued):

The following table presents a summary of loans that were modified as troubled debt restructurings during the three month period ended March 31, 2017 (amounts in thousands):
 
 
 
 
 
Pre-Modification
Outstanding
Recorded
 
Post-Modification
Outstanding
Recorded
March 31, 2017
 
Number of Contracts
 
Investment
 
Investment
Consumer real estate
 
1
 
$
138

 
$
138

 
The following table presents a summary of loans that were modified as troubled debt restructurings during the twelve month period ended December 31, 2016 (amounts in thousands):

 
 
 
 
Pre-Modification
Outstanding
Recorded
 
Post-Modification
Outstanding
Recorded
December 31, 2016
 
Number of Contracts
 
Investment
 
Investment
Construction and land development
 
1
 
$
278

 
$
278

Commercial and industrial
 
1
 
$
164

 
$
164



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

Purchased Credit Impaired Loans:
 
The Company has acquired loans which 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 as of is as follows:
 
 
March 31, 2017
December 31, 2016
Commercial real estate
$
18,105

$
18,473

Consumer real estate
11,954

12,111

Construction and land development
2,364

2,553

Commercial and industrial
2,380

2,482

Consumer and other


Total loans
34,803

35,619

Less remaining purchase discount
(8,202
)
(8,426
)
Total loans, net of purchase discount
26,601

27,193

Less: Allowance for loan losses


Carrying amount, net of allowance
$
26,601

$
27,193


 
Activity related to the accretable portion of the purchase discount on loans acquired with deteriorated credit quality is as follows for the three months period ended March 31, 2017 and 2016:
Note 4. Loans and Allowance for Loan Losses, Continued

Purchased Credit Impaired Loans (continued):

 
 
Three Months Ended
March 31, 2017
 
Three Months Ended
March 31, 2016
Accretable yield, beginning of period
 
$
8,950

 
$
10,216

Additions
 

 

Accretion income
 
(697
)
 
(629
)
Reclassification to accretable
 
244

 
(41
)
Other changes, net
 
(15
)
 
60

Accretable yield
 
$
8,482

 
$
9,606

v3.7.0.1
Employee Benefit Plans
3 Months Ended
Mar. 31, 2017
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Employee Benefit Plans
Employee Benefit Plans

401(k) Plan:
 
The Company provides a deferred salary reduction plan (“Plan”) under Section 401 (k) of the Internal Revenue Code covering substantially all employees. After one year of service the Company matches 100 percent of employee contributions up to 3 percent of compensation and 50 percent of employee contributions on the next 2 percent of compensation. The Company's contribution to the Plan for the three month period ending March 31, 2017 and 2016 respectively was $102,716 and $90,856.
 
Stock Option Plans:
 
The Company has one currently active equity incentive plan administered by the Board of Directors, and four plans or programs, pursuant to which the Company has outstanding prior grants. These plans are described below:
 
Legacy Cornerstone Bancshares, Inc. 2002 Long Term Incentive Plan – The plan provided Cornerstone Bancshares, Inc. officers and employees incentive stock options or non-qualified stock options to purchase shares of common stock. The exercise price for incentive stock options was not less than 100 percent of the fair market value of the common stock on the date of the grant. The exercise price of the non-qualified stock options was equal to or more or less than the fair market value of the common stock on the date of the grant. This plan expired in 2012.
 
Legacy Cornerstone Non-Qualified Plan Options — During 2013 and 2014, Cornerstone issued non-qualified options to employees and directors. The options were originally documented in 2013 as being issued out of the Cornerstone Bancshares, Inc. 2002 Long Term Incentive Plan but that plan expired in 2012. The non-qualified options are governed by the grant document issued to the holders which incorporate the terms of the plan by reference.
 
Legacy SmartBank Stock Option Plan – This plan was assumed by the Company on August 31, 2015. The plan provides for incentive stock options and nonqualified stock options. The maximum number of common shares that could be sold or optioned under the plan is 525,000 shares. Under the plan, the exercise price of each option could not be less than 100 percent of the fair market value of the common stock on the date of grant.
 
Legacy SmartFinancial, Inc. 2010 Incentive Plan - This plan was assumed by the Company on August 31, 2015. This plan provides for incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, performance awards, dividend equivalents and stock or other stock-based awards. The maximum number of common shares that could be sold or optioned under the plan is 525,000 shares. Under the plan, the exercise price of each option could not be less than 100 percent of the fair market value of the common stock on the date of grant.
 
Note 5. Employee Benefit Plans, Continued

Stock Option Plans (Continued):


2015 Stock Incentive Plan – This plan provides for incentive stock options, nonqualified stock options, and restricted stock. The maximum number of shares of common stock that can be sold or optioned under the plan is 2,000,000 shares. The term of each option shall be no more than ten years from the date of grant. In the case of an incentive stock option granted to a participant who, at the time the option is granted, owns stock representing more than ten percent of the voting power of all classes of stock of the Company or any parent or subsidiary thereof, the term of the option shall be five years from the date of grant or such shorter term as may be provided in the award agreement.
 
The per share exercise price for the shares to be issued upon exercise of an option shall be such price as is determined by the plan administrator, subject to the following: In the case of an incentive stock option: (1) granted to an employee who, at the time of grant of such option, owns stock representing more than ten percent of the voting power of all classes of stock of the company or any parent or subsidiary thereof, the exercise price shall be no less than one hundred and ten percent of the fair market value per share on the date of grant; or (2) granted to any other employee, the per share exercise price shall be no less than one hundred percent of the fair market value per share on the date of grant. In the case of a nonstatutory stock option, the per share exercise price shall be no less than one hundred percent of the fair market value per share on the date of grant, unless otherwise determined by the Administrator.
 
The incentive stock options vest 30% on the second anniversary of the grant date, 30% on the third anniversary of the grant date and 40% on the fourth anniversary of the grant date. Director non-qualified stock options vest 50% on the first anniversary of the grant date and 50% on the second anniversary of the grant date.

A summary of the status of these stock option plans is presented in the following table: 
 
 
 
Number
 
Weighted
Average
Exercisable
Price
Outstanding at December 31, 2016
 
717,524

 
$
10.57

Exercised
 
(473,558
)
 
9.61

Forfeited
 
(18,524
)
 
20.27

Outstanding at March 31, 2017
 
225,442

 
$
11.78

 
 
 
Number
 
Weighted
Average
Exercisable
Price
Outstanding at December 31, 2015
 
817,414

 
$
10.62

Exercised
 
(89,556
)
 
8.98

Forfeited
 
(10,334
)
 
28.49

Outstanding at December 31, 2016
 
717,524

 
$
10.57


Note 5. Employee Benefit Plans, Continued

Stock Option Plans (continued):

Information pertaining to options outstanding at March 31, 2017, is as follows: 
 
 
Options Outstanding
 
Options Exercisable
 
 
 
 
Weighted-
Average
Remaining
 
Weighted-
Average
 
 
 
Weighted-
Average
Exercise
 
Number
 
Contractual
 
Exercise
 
Number
 
Exercise
Prices
 
Outstanding
 
Life
 
Price
 
Exercisable
 
Price
$
6.20

 
750

 
4.0 years
 
$
6.20

 
750

 
$
6.20

6.60

 
41,500

 
5.0 years
 
6.60

 
41,500

 
6.60

6.80

 
19,375

 
3.9 years
 
6.80

 
19,375

 
6.80

9.48

 
29,375

 
5.9 years
 
9.48

 
29,375

 
9.48

9.52

 
525

 
0.3 years
 
9.52

 
525

 
9.52

9.60

 
37,625

 
6.9 years
 
9.60

 
37,625

 
9.60

10.48

 
20,513

 
0.4 years
 
10.48

 
20,513

 
10.48

11.67

 
3,250

 
3.8 years
 
11.67

 
3,250

 
11.67

14.40

 
15,180

 
1.9 years
 
14.40

 
15,180

 
14.40

15.05

 
42,745

 
8.5 years
 
15.05

 
4,104

 
15.05

31.96

 
13,916

 
0.9 years
 
31.96

 
13,916

 
31.96

60.80

 
688

 
0.1 years
 
60.80

 
688

 
60.80



 


 

 


 


 


Outstanding, end of period
 
225,442

 
5.1 years
 
11.78

 
186,801

 
11.11



The Company recognized stock-based compensation expense of $26,812 and $33,635 for the three months ended March 31, 2017 and March 31, 2016, respectively. For the three months period ended March 31, 2017, direct stock grant expense issued to local advisory board members of $31,791 was included in professional services. There was no direct grant stock grant expense for the three months period ended March 31, 2016. The total fair value of shares underlying the options which vested during the three months period ended March 31, 2017 and March 31, 2016 was $0 and $19,425 , respectively. There were no income tax benefits recognized for the exercise of options for the periods ended March 31, 2017 and March 31, 2016, respectively.

The intrinsic value of options exercised during the period ended March 31, 2017 was $5,024,759. The aggregate intrinsic value of total options outstanding and exercisable options at March 31, 2017 was $2,266,259 and $2,034,800, respectively. Cash received from options exercised under all share-based payment arrangements for the period ended March 31, 2017 was $4,260,734.
 
Information related to non-vested options for the period ended March 31, 2017, is as follows: 
 
 
Number
 
Weighted
Average
Grant-Date
Fair Value
Nonvested at December 31, 2016
 
47,970

 
$
12.31

Granted
 

 

Vested
 

 

Forfeited/expired
 
(9,329
)
 
12.31

Nonvested at March 31, 2017
 
38,641

 
$
12.31


 
As of March 31, 2017 , there was approximately $340,542 of total unrecognized compensation cost related to nonvested stock-based compensation arrangements granted under the Plans. The cost is expected to be recognized over a weighted-average period of 1.4 years. There were no stock options granted during the three months period ended March 31, 2017 .
v3.7.0.1
Commitments and Contingent Liabilities
3 Months Ended
Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingent Liabilities
Commitments and Contingent Liabilities
 
Off Balance Sheet Arrangements In the normal course of business, the Bank has entered into off-balance sheet financial instruments which include commitments to extend credit (i.e., including unfunded lines of credit) and standby letters of credit. Commitments to extend credit are usually the result of lines of credit granted to existing borrowers under agreements that the total outstanding indebtedness will not exceed a specific amount during the term of the indebtedness. Typical borrowers are commercial concerns that use lines of credit to supplement their treasury management functions; thus their total outstanding indebtedness may fluctuate during any time period based on the seasonality of their business and the resultant timing of their cash flows. Other typical lines of credit are related to home equity loans granted to consumers. Commitments to extend credit generally have fixed expiration dates or other termination clauses and may require payment of a fee.
 
Standby letters of credit are generally issued on behalf of an applicant (our client) to a specifically named beneficiary and are the result of a particular business arrangement that exists between the applicant and the beneficiary. Standby letters of credit have fixed expiration dates and are usually for terms of two years or less unless terminated beforehand due to criteria specified in the standby letter of credit. A typical arrangement involves the applicant routinely being indebted to the beneficiary for such items as inventory purchases, insurance, utilities, lease guarantees or other third party commercial transactions. The standby letter of credit would permit the beneficiary to obtain payment from the Bank under certain prescribed circumstances. Subsequently, the Bank would seek reimbursement from the applicant pursuant to the terms of the standby letter of credit.
    
The Bank follows the same credit policies and underwriting practices when making these commitments as it does for on-balance sheet instruments. Each client’s creditworthiness is evaluated on a case-by-case basis, and the amount of collateral obtained, if any, is based on management’s credit evaluation of the customer. Collateral held varies but may include cash, real estate and improvements, marketable securities, accounts receivable, inventory, equipment and personal property.
 
The contractual amounts of these commitments are not reflected in the consolidated financial statements and would only be reflected if drawn upon. Since many of the commitments are expected to expire without being drawn upon, the contractual amounts do not necessarily represent future cash requirements. However, should the commitments be drawn upon and should customers default on their resulting obligation to the Bank the maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those instruments.
 
A summary of the Bank’s total contractual amount for all off-balance sheet commitments at March 31, 2017 is as follows:
 
Commitments to extend credit
$
133.4
 million
Standby letters of credit
$
2.9
 million

 
Various legal claims also arise from time to time in the normal course of business. In the opinion of management, the resolution of claims outstanding at March 31, 2017 will not have a material effect on SmartFinancial’s consolidated financial statements.
v3.7.0.1
Fair Value Disclosures
3 Months Ended
Mar. 31, 2017
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 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.
 
Note 7. Fair Value Disclosures, Continued

Fair Value Hierarchy:
 
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 I 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 following methods and assumptions were used by the Company in estimating fair value disclosures for financial instruments:
 
Cash and Cash Equivalents: For cash and due from banks, interest-bearing deposits, and federal funds sold, the carrying amount is a reasonable estimate of fair value based on the short-term nature of the assets and are considered Level 1 inputs.
 
Securities Available for Sale: Where quoted prices are available in an active market, management classifies the securities within Level 1 of the valuation hierarchy. If quoted market prices are not available, management estimates fair values using pricing models and discounted cash flows that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, and credit spreads. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, including GSE obligations, corporate bonds, and other securities. Mortgage-backed securities are included in Level 2 if observable inputs are available. In certain cases where there is limited activity or less transparency around inputs to the valuation, management classifies those securities in Level 3.
 
Restricted Investments: It is not practicable to determine the fair value of restricted investments due the restrictions placed on its transferability.
 
Loans:For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair value for fixed rate loans are estimated using discounted cash flow analyses, using market interest rates for comparable loans. Fair values for nonperforming loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. These methods are considered Level 3 inputs.
 
Deposits:The fair values disclosed for demand deposits (for example, interest and noninterest checking, savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts) and are considered Level 1 inputs. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates on comparable instruments to a schedule of aggregated expected monthly maturities on time deposits, and are considered Level 2 inputs.
 
Securities Sold Under Agreement to Repurchase: The carrying value of these liabilities approximates their fair value, and are considered Level 1 inputs.
 
Federal Home Loan Bank Advances and Other Borrowings: The fair value of the FHLB fixed rate borrowings are estimated using discounted cash flows, based on the current incremental borrowing rates for similar types of borrowing arrangements, and are considered Level 2 inputs.
Note 7. Fair Value Disclosures, Continued

Fair Value Hierarchy (continued):

Commitments to Extend Credit and Standby Letters of Credit: Because commitments to extend credit and standby letters of credit are made using variable rates and have short maturities, the carrying value and the fair value are immaterial for disclosure.
 
Measurements of Fair Value:

Assets and liabilities recorded at fair value on a recurring basis are as follows (in thousands): 
 
 
Balance as of
March 31,
2017
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
Debt securities available-for-sale:
 
 

 
 

 
 

 
 

U.S. Government-sponsored enterprises (GSEs)
 
$
17,798

 
$

 
$
17,798

 
$

Mortgage-backed securities
 
110,051

 

 
110,051

 

Other debt securities
 
946

 
 
 
946

 
 
Municipal securities
 
8,338

 

 
8,338

 

Total securities available-for-sale
 
$
137,133

 
$

 
$
137,133

 
$

 
 
 
Balance as of
December 31,
2016
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
Debt securities available-for-sale:
 
 

 
 

 
 

 
 

U.S. Government-sponsored enterprises (GSEs)
 
$
17,723

 
$

 
$
17,723

 
$

Mortgage-backed securities:
 
103,680

 

 
103,680

 

Municipal securities
 
8,019

 

 
8,019

 

Total securities available-for-sale
 
$
129,422

 
$

 
$
129,422

 
$


 

The Company has no assets or liabilities whose fair values are measured on a recurring basis using Level 3 inputs. Additionally, 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):
 
 
 
Balance as of
March 31,
2017
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
Impaired loans
 
$
717

 
$

 
$

 
$
717

Foreclosed assets
 
2,371

 

 

 
2,371

 
Note 7. Fair Value Disclosures, Continued

Assets Measured at Fair Value on a Nonrecurring Basis (continued):

 
 
Balance as of
December 31,
2016
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
Impaired loans
 
$
239

 
$

 
$

 
$
239

Foreclosed assets
 
2,386

 

 

 
2,386



For Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2017 and December 31, 2016 a, the significant unobservable inputs used in the fair value measurements are presented below (in thousands).

 
 
Balance as of
March 31,
2017
 
Valuation
Technique
 
Significant Other
Unobservable Input
 
Weighted
Average of
Input
Impaired loans
 
$
717

 
Appraisal
 
Discounted Cash Flow / Appraisal Discounts
 
9.1
%
Foreclosed assets
 
2,371

 
Appraisal
 
Appraisal Discounts
 
22.5
%
 
 
Balance as of
December 31,
2016
(in thousands)
 
Valuation
Technique
 
Significant Other
Unobservable Input
 
Weighted
Average of Input
Impaired loans
 
$
239

 
Cash Flow
 
Discounted Cash Flow / Appraisal Discounts
 
2.4
%
Foreclosed assets
 
2,386

 
Appraisal
 
Appraisal Discounts
 
12.2
%


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. Impaired loans 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 were 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.
 
Note 7. Fair Value Disclosures, Continued

Assets Measured at Fair Value on a Nonrecurring Basis(continued):

Foreclosed assets: Foreclosed assets, 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 at March 31, 2017 and December 31, 2016 are as follows (in thousands):
 
 
 
March 31, 2017
 
December 31, 2016
 
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
Assets:
 
 

 
 

 
 

 
 

Cash and cash equivalents
 
$
55,548

 
$
55,548

 
$
68,748

 
$
68,748

Securities available for sale
 
137,133

 
137,133

 
129,422

 
129,422

Restricted investments
 
5,628

 
N/A

 
5,628

 
N/A

Loans, net
 
802,387

 
795,077

 
808,271

 
803,057

 
 
 
 
 
 
 
 
 
Liabilities:
 
 

 
 

 
 

 
 

Noninterest-bearing demand deposits
 
160,673

 
160,673

 
153,483

 
153,483

Interest-bearing demand deposits
 
167,433

 
167,433

 
162,702

 
162,702

Money Market and Savings deposits
 
274,993

 
274,993

 
274,605

 
274,605

Time deposits
 
286,600

 
286,414

 
316,275

 
316,734

Securities sold under agreements to repurchase
 
23,153

 
23,153

 
26,622

 
26,622

Federal Home Loan Bank advances and other borrowings
 
60

 
60

 
18,505

 
18,505


 
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. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition,
the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.
v3.7.0.1
Small Business Lending Fund
3 Months Ended
Mar. 31, 2017
Small Business Lending Fund [Abstract]  
Small Business Lending Fund
Small Business Lending Fund
 
During 2011, the Company issued to the Secretary of the Treasury 12,000 shares of preferred stock at $1,000 per share under the Small Business Lending Fund Program (the "SBLF Program"). Subject to regulatory approval, the Company may redeem the preferred stock for $1,000 per share, plus accrued and unpaid dividends, in whole or in part at any time. The SBLF Program is a voluntary program authorized under the Business Jobs Acts of 2010, whereby the United States Treasury can make capital investments in eligible institutions; the capital investments, in turn, are designed to increase the availability of credit for small businesses and promote economic growth by providing capital to qualified community banks at favorable rates. The Company paid cash dividends at a one percent rate or $120,000 for the year ended December 31, 2015. On February 4, 2016 the dividend rate for the preferred shares increased to nine percent and as a result the company incurred preferred stock dividends of $1,022,000 for the year ended December 31, 2016 .

On January 30, 2017, the Company completed a public offering of 2,010,084 million shares of its common stock, par value $1.00 per share, with the net proceeds to the Company of approximately $33.2 million. Subsequent to the public offering the Company used proceeds from the offering to redeem the $12 million of preferred stock and pay the $195 thousand accrued dividend on March 6, 2017.
v3.7.0.1
Presentation of Financial Information (Policies)
3 Months Ended
Mar. 31, 2017
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 eastern Tennessee, northwest Florida, and north Georgia. The Company’s primary deposit products are interest-bearing demand deposits and certificates of deposit. Its primary lending products are commercial, residential, and consumer loans.
Interim Financial Information (Unaudited)
Interim Financial Information (Unaudited):
 
The financial information in this report for March 31, 2017 and March 31, 2016 has not been audited. The information included herein should be read in conjunction with the Company’s 2016 annual consolidated financial statements and footnotes included elsewhere. The consolidated financial statements presented herein conform to U.S. generally accepted accounting principles and to general industry practices. In the opinion of SmartFinancial’s management, the accompanying interim financial statements contain all material adjustments necessary to present fairly the 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.
Basis of Presentation and Accounting Estimates
Basis of Presentation and Accounting Estimates:
 
All adjustments consisting of normal recurring accruals, that in the opinion of management, are necessary for a fair presentation of the financial position and the results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements and related notes should be read in conjunction with those appearing the in the 2016 Annual Report previously filed on Form 10-K.
 
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 accounting principles generally accepted in the United States of America, 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, and the fair value of financial instruments.
 
The determination of the adequacy of the allowance for loan losses is based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. In connection with the determination of the estimated losses on loans, management obtains independent appraisals for significant collateral.
 
The Company’s loans are generally secured by specific items of collateral including real property, consumer assets, and business assets. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on local economic conditions.
 
While management uses available information to recognize losses on loans, further reductions in the carrying amounts of loans may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the estimated losses on loans. Such agencies may require the Company to recognize additional losses based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the estimated losses on loans may change materially in the near term. However, the amount of the change that is reasonably possible cannot be estimated.
Recently Issued Accounting Pronouncements
Recently Issued 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, 2016 as filed with the Securities and Exchange Commission. The following is a summary of recent authoritative pronouncements not yet effective that could impact the accounting, reporting, and/or disclosure of financial information by the Company issued since December 31, 2016.

In January 2017, FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business. The ASU clarifies the definition of a business to assist with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements.

In January 2017, FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU simplifies the subsequent measurement of goodwill and eliminates Step 2 from the goodwill impairment test. The Company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect these amendments to have a material effect on its financial statements.

In March 2017, FASB issued 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 amendments in this update are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. This update should be adopted on a modified retrospective basis with a cumulative-effect adjustment to retained earnings on the date of adoption. The Company does not expect these amendments to have a material effect on its financial statements.
Earnings Per Common Share
Earnings per common share:
 
Basic earnings per common share represents income available to common stockholders 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. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method.
v3.7.0.1
Earnings per share (Tables)
3 Months Ended
Mar. 31, 2017
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 for the three month periods ended March 31, 2017 and March 31, 2016.
 
 
 
Three Months Ended March 31,
 
 
2017
 
2016
Net income available to common shareholders
 
$
1,448,851

 
$
1,136,863

Weighted average common shares outstanding
 
7,524,830

 
5,807,488

Effect of dilutive stock options
 
106,389

 
300,599

Diluted shares
 
7,631,219

 
6,108,087

Basic earnings per common share
 
$
0.19

 
$
0.20

Diluted earnings per common share
 
$
0.19

 
$
0.19

v3.7.0.1
Securities (Tables)
3 Months Ended
Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
Schedule of Available-For-Sale Securities Reconciliation
The amortized cost and fair value of securities available-for-sale at March 31, 2017 and December 31, 2016 are summarized as follows (in thousands):
 
 
 
March 31, 2017
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Government-sponsored enterprises (GSEs)
 
$
18,261

 
$
5

 
$
(468
)
 
$
17,798

Municipal securities
 
8,434

 
23

 
(119
)
 
8,338

Other debt securities
 
972

 

 
(26
)
 
946

Mortgage-backed securities
 
110,573

 
228

 
(750
)
 
110,051

 
 
$
138,240

 
$
256

 
$
(1,363
)
 
$
137,133

 
 
 
December 31, 2016
 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Government-sponsored enterprises (GSEs)
 
$
18,279

 
$
8

 
$
(564
)
 
$
17,723

Municipal securities
 
8,182

 
16

 
(179
)
 
8,019

Mortgage-backed securities
 
104,585

 
185

 
(1,090
)
 
103,680

 
 
$
131,046

 
$
209

 
$
(1,833
)
 
$
129,422

Investments Classified by Contractual Maturity Date
The amortized cost and estimated fair value of securities at March 31, 2017, by contractual maturity, are shown below (in thousands). Expected maturities will 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
 
$
3,011

 
$
3,011

Due from one year to five years
 
12,391

 
12,048

Due from five years to ten years
 
8,543

 
8,341

Due after ten years
 
3,722

 
3,682

 
 
27,667

 
27,082

Mortgage-backed securities
 
110,573

 
110,051

 
 
$
138,240

 
$
137,133

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, as of March 31, 2017 and December 31, 2016 (in thousands):
 
 
 
As of March 31, 2017
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
U.S. Government- sponsored enterprises (GSEs)
 
14,379

 
(468
)
 

 

 
14,379

 
(468
)
Municipal securities
 
5,115

 
(118
)
 
254

 
(1
)
 
5,369

 
(119
)
Other debt securities
 
945

 
(26
)
 

 

 
945

 
(26
)
Mortgage-backed securities
 
62,827

 
(380
)
 
12,129

 
(370
)
 
74,956

 
(750
)
 
 
83,266

 
(992
)
 
12,383

 
(371
)
 
95,649

 
(1,363
)
 
 
 
As of December 31, 2016
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
 
Fair
Value
 
Gross
Unrealized
Losses
U.S. Government- sponsored enterprises (GSEs)
 
$
14,702

 
$
(564
)
 
$

 
$

 
$
14,702

 
$
(564
)
Municipal securities
 
6,368

 
(179
)
 

 

 
6,368

 
(179
)
Mortgage-backed securities
 
67,063

 
(690
)
 
8,948

 
(400
)
 
76,011

 
(1,090
)
 
 
$
88,133

 
$
(1,433
)
 
$
8,948

 
$
(400
)
 
$
97,081

 
$
(1,833
)
v3.7.0.1
Loans and Allowance for Loan Losses (Tables)
3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
At March 31, 2017 and December 31, 2016, loans are summarized as follows (in thousands):
 
 
 
March 31, 2017
 
December 31, 2016
 
 
PCI Loans
 
All Other
Loans
 
Total
 
PCI 
Loans
 
All Other
Loans
 
Total
Commercial real estate
 
$
14,683

 
$
393,216

 
$
407,899

 
$
14,943

 
$
400,265

 
$
415,208

Consumer real estate
 
8,874

 
177,471

 
186,345

 
9,004

 
178,798

 
187,802

Construction and land development
 
1,506

 
114,168

 
115,674

 
1,678

 
116,191

 
117,869

Commercial and industrial
 
1,538

 
89,169

 
90,707

 
1,568

 
83,454

 
85,022

Consumer and other
 

 
6,914

 
6,914

 

 
7,475

 
7,475

Total loans
 
26,601

 
780,938

 
807,539

 
27,193

 
786,183

 
813,376

Less:  Allowance for loan losses
 

 
(5,152
)
 
(5,152
)
 

 
(5,105
)
 
(5,105
)
Loans, net
 
$
26,601

 
$
775,786

 
$
802,387

 
$
27,193

 
$
781,078

 
$
808,271

Schedule of Impaired and Performing Loans Receivable
The composition of loans by loan classification for impaired and performing loan status at March 31, 2017 and December 31, 2016, is summarized in the tables below (amounts in thousands):
 
 
 
March 31, 2017
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Performing loans
 
$
392,978

 
$
176,478

 
$
113,534

 
$
88,960

 
$
6,914

 
$
778,864

Impaired loans
 
238

 
993

 
634

 
209

 

 
2,074

 
 
393,216

 
177,471

 
114,168

 
89,169

 
6,914

 
780,938

PCI loans
 
14,683

 
8,874

 
1,506

 
1,538

 

 
26,601

Total
 
$
407,899

 
$
186,345

 
$
115,674

 
$
90,707

 
$
6,914

 
$
807,539


 
 
December 31, 2016
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Performing loans
 
$
400,146

 
$
177,977

 
$
115,326

 
$
83,244

 
$
7,475

 
$
784,168

Impaired loans
 
119

 
821

 
865

 
210

 

 
2,015

 
 
400,265

 
178,798

 
116,191

 
83,454

 
7,475

 
786,183

PCI loans
 
14,943

 
9,004

 
1,678

 
1,568

 

 
27,193

Total loans
 
$
415,208

 
$
187,802

 
$
117,869

 
$
85,022

 
$
7,475

 
$
813,376

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 as of March 31, 2017 and December 31, 2016 (amounts in thousands):
 
 
 
March 31, 2017
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and
Other
 
Total
Performing loans
 
$
2,329

 
$
1,398

 
$
706

 
$
554

 
$
93

 
$
5,080

Impaired loans
 

 
68

 

 
4

 

 
72

Total
 
$
2,329

 
$
1,466

 
$
706

 
$
558

 
$
93

 
$
5,152

 
 
 
December 31, 2016
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and
Other
 
Total
Performing loans
 
$
2,369

 
$
1,382

 
$
717

 
$
516

 
$
117

 
$
5,101

Impaired loans
 

 

 

 
4

 

 
4

Total
 
$
2,369

 
$
1,382

 
$
717

 
$
520

 
$
117

 
$
5,105

Schedule of Financing Receivable Allowance for Credit Losses
The following tables detail the changes in the allowance for loan losses for the three month period ending March 31, 2017 and year ending December 31, 2016, by loan classification (amounts in thousands):
 
 
 
March 31, 2017
 
 
Commercial
Real Estate
 
Consumer
Real
Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Beginning balance
 
$
2,369

 
$
1,382

 
$
717

 
$
520

 
$
117

 
$
5,105

Loans charged off
 

 

 

 
(3
)
 
(22
)
 
(25
)
Recoveries of loans charged off
 
5

 
17

 
5

 
16

 
17

 
60

Provision (reallocation) charged to operating expense
 
(45
)
 
67

 
(16
)
 
25

 
(19
)
 
12

Ending balance
 
$
2,329

 
$
1,466

 
$
706

 
$
558

 
$
93

 
$
5,152


 
 
December 31, 2016
 
 
Commercial
Real Estate
 
Consumer
Real
Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Beginning balance
 
$
1,906

 
$
1,015

 
$
627

 
$
777

 
$
29

 
$
4,354

Loans charged off
 

 
(102
)
 
(14
)
 
(35
)
 
(155
)
 
(306
)
Recoveries of charge-offs
 
45

 
76

 
22

 
58

 
68

 
269

Provision (reallocation) charged to operating expense
 
418

 
393

 
82

 
(280
)
 
175

 
788

Ending balance
 
$
2,369

 
$
1,382

 
$
717

 
$
520

 
$
117

 
$
5,105

Financing Receivable Credit Quality Indicators
The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of March 31, 2017 and December 31, 2016 (amounts in thousands):

Non PCI Loans
 
 
March 31, 2017
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Pass
 
$
392,338

 
$
176,001

 
$
113,447

 
$
88,723

 
$
6,685

 
$
777,194

Watch
 
635

 
514

 
87

 
237

 

 
1,473

Special mention
 

 
103

 

 

 
229

 
332

Substandard
 
243

 
853

 
634

 
209

 

 
1,939

Doubtful
 

 

 

 

 

 

Total
 
$
393,216

 
$
177,471

 
$
114,168

 
$
89,169

 
$
6,914

 
$
780,938

 
PCI Loans
 
 
March 31, 2017
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Pass
 
$
11,617

 
$
6,816

 
$
848

 
$
1,309

 
$

 
$
20,590

Watch
 
890

 
1,280

 
645

 
19

 

 
2,834

Special mention
 

 

 

 
183

 

 
183

Substandard
 
2,176

 
778

 
13

 

 

 
2,967

Doubtful
 

 

 

 
27

 

 
27

Total
 
$
14,683

 
$
8,874

 
$
1,506

 
$
1,538

 
$

 
$
26,601

Total loans
 
$
407,899

 
$
186,345

 
$
115,674

 
$
90,707

 
$
6,914

 
$
807,539


Non PCI Loans
 
 
December 31, 2016
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Pass
 
$
399,505

 
$
177,466

 
$
115,237

 
$
82,992

 
$
7,238

 
$
782,438

Watch
 
640

 
550

 
89

 
252

 

 
1,531

Special mention
 

 
104

 

 

 
237

 
341

Substandard
 
120

 
678

 
865

 
210

 

 
1,873

Doubtful
 

 

 

 

 

 

Total
 
$
400,265

 
$
178,798

 
$
116,191

 
$
83,454

 
$
7,475

 
$
786,183

  
Note 4. Loans and Allowance for Loan Losses, Continued

Credit Risk Management (continued):

PCI Loans
 
 
December 31, 2016
 
 
Commercial
Real Estate
 
Consumer
Real Estate
 
Construction
and Land
Development
 
Commercial
and
Industrial
 
Consumer
and Other
 
Total
Pass
 
$
11,836

 
$
6,811

 
$
1,019

 
$
1,507

 
$

 
$
21,173

Watch
 
1,045

 
1,577

 
645

 
22

 

 
3,289

Special mention
 

 

 

 
12

 

 
12

Substandard
 
2,062

 
616

 
14

 

 

 
2,692

Doubtful
 

 

 

 
27

 

 
27

Total
 
$
14,943

 
$
9,004

 
$
1,678

 
$
1,568

 
$

 
$
27,193

Total loans
 
$
415,208

 
$
187,802

 
$
117,869

 
$
85,022

 
$
7,475

 
$
813,376

Past Due Financing Receivables
The following tables present the aging of the recorded investment in loans as of March 31, 2017 and December 31, 2016 (amounts in thousands): 

 
 
March 31, 2017
 
 
30-89 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
 
$
196

 
$

 
$
124

 
$
320

 
$
14,683

 
$
392,896

 
$
407,899

Consumer real estate
 
1,180

 

 
523

 
1,703

 
8,874

 
175,768

 
186,345

Construction and land development
 
34

 

 
634

 
668

 
1,506

 
113,500

 
115,674

Commercial and industrial
 
359

 
27

 
164

 
550

 
1,538

 
88,619

 
90,707

Consumer and other
 
20

 

 

 
20

 

 
6,894

 
6,914

Total
 
$
1,789

 
$
27

 
$
1,445

 
$
3,261

 
$
26,601

 
$
777,677

 
$
807,539


Note 4. Loans and Allowance for Loan Losses, Continued

Past Due Loans (continued):

 
 
December 31, 2016
 
 
30-89 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
 
$
395

 
$

 
$

 
$
395

 
$
14,943

 
$
399,870

 
$
415,208

Consumer real estate
 
695

 
699

 
386

 
1,780

 
9,004

 
177,018

 
187,802

Construction and land development
 
690

 

 
865

 
1,555

 
1,678

 
114,636

 
117,869

Commercial and industrial
 
257

 

 
164

 
421

 
1,568

 
83,033

 
85,022

Consumer and other
 
17

 

 

 
17

 

 
7,458

 
7,475

Total
 
$
2,054

 
$
699

 
$
1,415

 
$
4,168

 
$
27,193

 
$
782,015

 
$
813,376

Impaired Financing Receivables
The following is an analysis of the impaired loan portfolio, excluding PCI loans, detailing the related allowance recorded as of March 31, 2017 and December 31, 2016 (amounts in thoudands):  
 
 
 
 
 
 
 
 
For the three months ended
 
 
At March 31, 2017
 
March 31, 2017
 
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Impaired loans without a valuation allowance:
 
 

 
 

 
 

 
 

 
 

Commercial real estate
 
$
238

 
$
241

 
$

 
$
179

 
$
3

Consumer real estate
 
368

 
383

 

 
595

 
6

Construction and land development
 
634

 
634

 

 
750

 

Commercial and industrial
 
45

 
45

 

 
46

 
1

Consumer and other
 

 

 

 

 

 
 
1,285

 
1,303

 

 
1,570

 
10

 
 
 
 
 
 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 

 
 

 
 

 
 

 
 

Commercial real estate
 

 

 

 

 

Consumer real estate
 
625

 
644

 
68

 
313

 
5

Construction and land development
 

 

 

 

 

Commercial and industrial
 
164

 
243

 
4

 
164

 

Consumer and other
 

 

 

 

 

 
 
789

 
887

 
72

 
477

 
5

Total impaired loans
 
$
2,074

 
$
2,190

 
$
72

 
$
2,047

 
$
15



Note 4. Loans and Allowance for Loan Losses, Continued

Impaired Loans (continued):

 
 
 
 
 
 
 
 
For the year ended
 
 
At December 31, 2016
 
December 31, 2016
 
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Impaired loans without a valuation allowance:
 
 

 
 

 
 

 
 

 
 

Commercial real estate
 
$
119

 
$
119

 
$

 
$
1,311

 
$
73

Consumer real estate
 
821

 
849

 

 
2,334

 
100

Construction and land development
 
865

 
865

 

 
967

 
3

Commercial and industrial
 
46

 
46

 

 
47

 
4

Consumer and other
 

 

 

 

 

 
 
1,851

 
1,879

 

 
4,659

 
180

 
 
 
 
 
 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 

 
 

 
 

 
 

 
 

Commercial real estate
 

 

 

 

 

Consumer real estate
 

 

 

 

 

Construction and land development
 

 

 

 

 

Commercial and industrial
 
164

 
243

 
4

 
306

 
70

Consumer and other
 

 

 

 

 

 
 
164

 
243

 
4

 
306

 
70

Total impaired loans
 
$
2,015

 
$
2,122

 
$
4

 
$
4,965

 
$
250

Troubled Debt Restructurings on Financing Receivables
The following table presents a summary of loans that were modified as troubled debt restructurings during the three month period ended March 31, 2017 (amounts in thousands):
 
 
 
 
 
Pre-Modification
Outstanding
Recorded
 
Post-Modification
Outstanding
Recorded
March 31, 2017
 
Number of Contracts
 
Investment
 
Investment
Consumer real estate
 
1
 
$
138

 
$
138

 
The following table presents a summary of loans that were modified as troubled debt restructurings during the twelve month period ended December 31, 2016 (amounts in thousands):

 
 
 
 
Pre-Modification
Outstanding
Recorded
 
Post-Modification
Outstanding
Recorded
December 31, 2016
 
Number of Contracts
 
Investment
 
Investment
Construction and land development
 
1
 
$
278

 
$
278

Commercial and industrial
 
1
 
$
164

 
$
164

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period, Carrying Amount of Loans
The Company has acquired loans which 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 as of is as follows:
 
 
March 31, 2017
December 31, 2016
Commercial real estate
$
18,105

$
18,473

Consumer real estate
11,954

12,111

Construction and land development
2,364

2,553

Commercial and industrial
2,380

2,482

Consumer and other


Total loans
34,803

35,619

Less remaining purchase discount
(8,202
)
(8,426
)
Total loans, net of purchase discount
26,601

27,193

Less: Allowance for loan losses


Carrying amount, net of allowance
$
26,601

$
27,193

Schedule of Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement
Activity related to the accretable portion of the purchase discount on loans acquired with deteriorated credit quality is as follows for the three months period ended March 31, 2017 and 2016:
Note 4. Loans and Allowance for Loan Losses, Continued

Purchased Credit Impaired Loans (continued):

 
 
Three Months Ended
March 31, 2017
 
Three Months Ended
March 31, 2016
Accretable yield, beginning of period
 
$
8,950

 
$
10,216

Additions
 

 

Accretion income
 
(697
)
 
(629
)
Reclassification to accretable
 
244

 
(41
)
Other changes, net
 
(15
)
 
60

Accretable yield
 
$
8,482

 
$
9,606

v3.7.0.1
Employee Benefit Plans (Tables)
3 Months Ended
Mar. 31, 2017
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Schedule of Share-based Compensation, Stock Options, Activity
A summary of the status of these stock option plans is presented in the following table: 
 
 
 
Number
 
Weighted
Average
Exercisable
Price
Outstanding at December 31, 2016
 
717,524

 
$
10.57

Exercised
 
(473,558
)
 
9.61

Forfeited
 
(18,524
)
 
20.27

Outstanding at March 31, 2017
 
225,442

 
$
11.78

 
 
 
Number
 
Weighted
Average
Exercisable
Price
Outstanding at December 31, 2015
 
817,414

 
$
10.62

Exercised
 
(89,556
)
 
8.98

Forfeited
 
(10,334
)
 
28.49

Outstanding at December 31, 2016
 
717,524

 
$
10.57


Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range
Information pertaining to options outstanding at March 31, 2017, is as follows: 
 
 
Options Outstanding
 
Options Exercisable
 
 
 
 
Weighted-
Average
Remaining
 
Weighted-
Average
 
 
 
Weighted-
Average
Exercise
 
Number
 
Contractual
 
Exercise
 
Number
 
Exercise
Prices
 
Outstanding
 
Life
 
Price
 
Exercisable
 
Price
$
6.20

 
750

 
4.0 years
 
$
6.20

 
750

 
$
6.20

6.60

 
41,500

 
5.0 years
 
6.60

 
41,500

 
6.60

6.80

 
19,375

 
3.9 years
 
6.80

 
19,375

 
6.80

9.48

 
29,375

 
5.9 years
 
9.48

 
29,375

 
9.48

9.52

 
525

 
0.3 years
 
9.52

 
525

 
9.52

9.60

 
37,625

 
6.9 years
 
9.60

 
37,625

 
9.60

10.48

 
20,513

 
0.4 years
 
10.48

 
20,513

 
10.48

11.67

 
3,250

 
3.8 years
 
11.67

 
3,250

 
11.67

14.40

 
15,180

 
1.9 years
 
14.40

 
15,180

 
14.40

15.05

 
42,745

 
8.5 years
 
15.05

 
4,104

 
15.05

31.96

 
13,916

 
0.9 years
 
31.96

 
13,916

 
31.96

60.80

 
688

 
0.1 years
 
60.80

 
688

 
60.80



 


 

 


 


 


Outstanding, end of period
 
225,442

 
5.1 years
 
11.78

 
186,801

 
11.11

Schedule Of Share Based Compensation Arrangement By Share Based Payment Award Options Non Vested
Information related to non-vested options for the period ended March 31, 2017, is as follows: 
 
 
Number
 
Weighted
Average
Grant-Date
Fair Value
Nonvested at December 31, 2016
 
47,970

 
$
12.31

Granted
 

 

Vested
 

 

Forfeited/expired
 
(9,329
)
 
12.31

Nonvested at March 31, 2017
 
38,641

 
$
12.31

v3.7.0.1
Commitments and Contingent Liabilities (Tables)
3 Months Ended
Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]  
Other Commitments
A summary of the Bank’s total contractual amount for all off-balance sheet commitments at March 31, 2017 is as follows:
 
Commitments to extend credit
$
133.4
 million
Standby letters of credit
$
2.9
 million
v3.7.0.1
Fair Value Disclosures (Tables)
3 Months Ended
Mar. 31, 2017
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets and liabilities recorded at fair value on a recurring basis are as follows (in thousands): 
 
 
Balance as of
March 31,
2017
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
Debt securities available-for-sale:
 
 

 
 

 
 

 
 

U.S. Government-sponsored enterprises (GSEs)
 
$
17,798

 
$

 
$
17,798

 
$

Mortgage-backed securities
 
110,051

 

 
110,051

 

Other debt securities
 
946

 
 
 
946

 
 
Municipal securities
 
8,338

 

 
8,338

 

Total securities available-for-sale
 
$
137,133

 
$

 
$
137,133

 
$

 
 
 
Balance as of
December 31,
2016
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
Debt securities available-for-sale:
 
 

 
 

 
 

 
 

U.S. Government-sponsored enterprises (GSEs)
 
$
17,723

 
$

 
$
17,723

 
$

Mortgage-backed securities:
 
103,680

 

 
103,680

 

Municipal securities
 
8,019

 

 
8,019

 

Total securities available-for-sale
 
$
129,422

 
$

 
$
129,422

 
$

Fair Value, Assets and Liabilities Measured on Non-Recurring Basis
 
 
 
Balance as of
March 31,
2017
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
Impaired loans
 
$
717

 
$

 
$

 
$
717

Foreclosed assets
 
2,371

 

 

 
2,371

 
Note 7. Fair Value Disclosures, Continued

Assets Measured at Fair Value on a Nonrecurring Basis (continued):

 
 
Balance as of
December 31,
2016
 
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
Impaired loans
 
$
239

 
$

 
$

 
$
239

Foreclosed assets
 
2,386

 

 

 
2,386

Fair Value, Assets Measured On Non-Recurring Basis, Unobservable Input Reconciliation
For Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2017 and December 31, 2016 a, the significant unobservable inputs used in the fair value measurements are presented below (in thousands).

 
 
Balance as of
March 31,
2017
 
Valuation
Technique
 
Significant Other
Unobservable Input
 
Weighted
Average of
Input
Impaired loans
 
$
717

 
Appraisal
 
Discounted Cash Flow / Appraisal Discounts
 
9.1
%
Foreclosed assets
 
2,371

 
Appraisal
 
Appraisal Discounts
 
22.5
%
 
 
Balance as of
December 31,
2016
(in thousands)
 
Valuation
Technique
 
Significant Other
Unobservable Input
 
Weighted
Average of Input
Impaired loans
 
$
239

 
Cash Flow
 
Discounted Cash Flow / Appraisal Discounts
 
2.4
%
Foreclosed assets
 
2,386

 
Appraisal
 
Appraisal Discounts
 
12.2
%
Fair Value, by Balance Sheet Grouping
The carrying amount and estimated fair value of the Company’s financial instruments at March 31, 2017 and December 31, 2016 are as follows (in thousands):
 
 
 
March 31, 2017
 
December 31, 2016
 
 
Carrying
Amount
 
Estimated
Fair Value
 
Carrying
Amount
 
Estimated
Fair Value
Assets:
 
 

 
 

 
 

 
 

Cash and cash equivalents
 
$
55,548

 
$
55,548

 
$
68,748

 
$
68,748

Securities available for sale
 
137,133

 
137,133

 
129,422

 
129,422

Restricted investments
 
5,628

 
N/A

 
5,628

 
N/A

Loans, net
 
802,387

 
795,077

 
808,271

 
803,057

 
 
 
 
 
 
 
 
 
Liabilities:
 
 

 
 

 
 

 
 

Noninterest-bearing demand deposits
 
160,673

 
160,673

 
153,483

 
153,483

Interest-bearing demand deposits
 
167,433

 
167,433

 
162,702

 
162,702

Money Market and Savings deposits
 
274,993

 
274,993

 
274,605

 
274,605

Time deposits
 
286,600

 
286,414

 
316,275

 
316,734

Securities sold under agreements to repurchase
 
23,153

 
23,153

 
26,622

 
26,622

Federal Home Loan Bank advances and other borrowings
 
60

 
60

 
18,505

 
18,505

v3.7.0.1
Earnings per share (Details) - USD ($)
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Earnings Per Share [Abstract]    
Net income available to common shareholders $ 1,448,851 $ 1,136,863
Weighted average common shares outstanding 7,524,830 5,807,488
Effect of dilutive stock options (in shares) 106,389 300,599
Diluted shares 7,631,219 6,108,087
Basic earnings per common share (in dollars per share) $ 0.19 $ 0.20
Diluted earnings per common share (in dollars per share) $ 0.19 $ 0.19
v3.7.0.1
Earnings per share - Narrative (Details) - shares
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Earnings Per Share [Abstract]    
Antidilutive securities excluded from computation of earnings per share (in shares) 14,604 18,100
v3.7.0.1
Securities - Amortized Cost and Fair Value of Available-for-sale Securities (Details) - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Debt securities available-for-sale:    
Amortized Cost $ 138,240 $ 131,046
Gross Unrealized Gains 256 209
Gross Unrealized Losses (1,363) (1,833)
Fair Value 137,133 129,422
U.S. Government-sponsored enterprises (GSEs) [Member]    
Debt securities available-for-sale:    
Amortized Cost 18,261 18,279
Gross Unrealized Gains 5 8
Gross Unrealized Losses (468) (564)
Fair Value 17,798 17,723
Municipal securities [Member]    
Debt securities available-for-sale:    
Amortized Cost 8,434 8,182
Gross Unrealized Gains 23 16
Gross Unrealized Losses (119) (179)
Fair Value 8,338 8,019
Other debt securities [Member]    
Debt securities available-for-sale:    
Amortized Cost 972  
Gross Unrealized Gains 0  
Gross Unrealized Losses (26)  
Fair Value 946  
Mortgage-backed securities [Member]    
Debt securities available-for-sale:    
Amortized Cost 110,573 104,585
Gross Unrealized Gains 228 185
Gross Unrealized Losses (750) (1,090)
Fair Value $ 110,051 $ 103,680
v3.7.0.1
Securities - Available-for-sale Securities by Contractual Maturity (Details) - USD ($)
Mar. 31, 2017
Dec. 31, 2016
Amortized Cost    
Securities Available for Sale, Due in one year or less, Amortized Cost $ 3,011,000  
Securities Available for Sale, Due from one year to five years, Amortized Cost 12,391,000  
Securities Available for Sale, Due from five years to ten years, Amortized Cost 8,543,000  
Securities Available for Sale, Due after ten years, Amortized Cost 3,722,000  
Securities Available for Sale, Debt Securities, Amortized Cost 27,667,000  
Securities Available for Sale, Mortgage-backed securities, Amortized Cost 110,573,000  
Amortized Cost 138,240,000 $ 131,046,000
Fair Value    
Securities Available for Sale, Due in one year or less, Fair Value 3,011,000  
Securities Available for Sale, Due from one year to five years, Fair Value 12,048,000  
Securities Available for Sale, Due from five years to ten years, Fair Value 8,341,000  
Securities Available for Sale, Due after ten years, Fair Value 3,682,000  
Securities Available for Sale, Debt Securities, Fair Value 27,082,000  
Securities Available for Sale, Mortgage-backed securities, Fair Value 110,051,000  
Securities Available for Sale, Fair Value $ 137,132,626 $ 129,421,914
v3.7.0.1
Securities - Available-for-sale Securities in Continuous Loss Position (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2017
USD ($)
investment
Dec. 31, 2016
USD ($)
Schedule of Available-for-sale Securities [Line Items]    
Less than 12 Months, Fair Value $ 83,266 $ 88,133
Less than 12 Months, Gross Unrealized Losses (992) (1,433)
12 Months or Greater, Fair Value 12,383 8,948
12 Months or Greater, Gross Unrealized Losses (371) (400)
Total, Fair Value 95,649 97,081
Total, Gross Unrealized Losses (1,363) (1,833)
U.S. Government-sponsored enterprises (GSEs) [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Less than 12 Months, Fair Value 14,379 14,702
Less than 12 Months, Gross Unrealized Losses (468) (564)
12 Months or Greater, Fair Value 0 0
12 Months or Greater, Gross Unrealized Losses 0 0
Total, Fair Value 14,379 14,702
Total, Gross Unrealized Losses $ (468) (564)
Number of investments in unrealized loss positions | investment 5  
Municipal securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Less than 12 Months, Fair Value $ 5,115 6,368
Less than 12 Months, Gross Unrealized Losses (118) (179)
12 Months or Greater, Fair Value 254 0
12 Months or Greater, Gross Unrealized Losses (1) 0
Total, Fair Value 5,369 6,368
Total, Gross Unrealized Losses $ (119) (179)
Number of investments in unrealized loss positions | investment 13  
Other debt securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Less than 12 Months, Fair Value $ 945  
Less than 12 Months, Gross Unrealized Losses (26)  
12 Months or Greater, Fair Value 0  
12 Months or Greater, Gross Unrealized Losses 0  
Total, Fair Value 945  
Total, Gross Unrealized Losses $ (26)  
Number of investments in unrealized loss positions | investment 1  
Mortgage-backed securities [Member]    
Schedule of Available-for-sale Securities [Line Items]    
Less than 12 Months, Fair Value $ 62,827 67,063
Less than 12 Months, Gross Unrealized Losses (380) (690)
12 Months or Greater, Fair Value 12,129 8,948
12 Months or Greater, Gross Unrealized Losses (370) (400)
Total, Fair Value 74,956 76,011
Total, Gross Unrealized Losses $ (750) $ (1,090)
Number of investments in unrealized loss positions | investment 57  
v3.7.0.1
Securities - Narrative (Details) - USD ($)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]    
Available-for-sale securities pledged as collateral   $ 81,068,000
Proceeds from sale of available-for-sale securities $ 5,072,500  
Gains from sale of securities 83,263  
Losses from sale of securities $ 0  
v3.7.0.1
Loans and Allowance for Loan Losses - Loan Summary (Details) - USD ($)
Mar. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans $ 807,539,000 $ 813,376,000  
Less: Allowance for loan losses (5,152,000) (5,105,000) $ (4,354,000)
Loans, net 802,387,400 808,271,003  
Purchased Credit Impaired Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 26,601,000 27,193,000  
Less: Allowance for loan losses 0 0  
Loans, net 26,601,000 27,193,000  
All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 780,938,000 786,183,000  
Less: Allowance for loan losses (5,152,000) (5,105,000)  
Loans, net 775,786,000 781,078,000  
Commercial Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 407,899,000 415,208,000  
Less: Allowance for loan losses (2,329,000) (2,369,000) (1,906,000)
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 14,683,000 14,943,000  
Commercial Real Estate [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 393,216,000 400,265,000  
Consumer Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 186,345,000 187,802,000  
Less: Allowance for loan losses (1,466,000) (1,382,000) (1,015,000)
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 8,874,000 9,004,000  
Consumer Real Estate [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 177,471,000 178,798,000  
Construction and Land Development [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 115,674,000 117,869,000  
Less: Allowance for loan losses (706,000) (717,000) (627,000)
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 1,506,000 1,678,000  
Construction and Land Development [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 114,168,000 116,191,000  
Commercial and Industrial [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 90,707,000 85,022,000  
Less: Allowance for loan losses (558,000) (520,000) (777,000)
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 1,538,000 1,568,000  
Commercial and Industrial [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 89,169,000 83,454,000  
Consumer and Other [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 6,914,000 7,475,000  
Less: Allowance for loan losses (93,000) (117,000) $ (29,000)
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 0 0  
Consumer and Other [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans $ 6,914,000 $ 7,475,000  
v3.7.0.1
Loans and Allowance for Loan Losses - Performing and Impaired Loans (Details) - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans $ 807,539 $ 813,376
All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 780,938 786,183
Purchased Credit Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 26,601 27,193
Commercial Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 407,899 415,208
Commercial Real Estate [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 393,216 400,265
Commercial Real Estate [Member] | Purchased Credit Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 14,683 14,943
Consumer Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 186,345 187,802
Consumer Real Estate [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 177,471 178,798
Consumer Real Estate [Member] | Purchased Credit Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 8,874 9,004
Construction and Land Development [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 115,674 117,869
Construction and Land Development [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 114,168 116,191
Construction and Land Development [Member] | Purchased Credit Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 1,506 1,678
Commercial and Industrial [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 90,707 85,022
Commercial and Industrial [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 89,169 83,454
Commercial and Industrial [Member] | Purchased Credit Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 1,538 1,568
Consumer and Other [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 6,914 7,475
Consumer and Other [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 6,914 7,475
Consumer and Other [Member] | Purchased Credit Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 0 0
Performing [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 778,864 784,168
Performing [Member] | Commercial Real Estate [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 392,978 400,146
Performing [Member] | Consumer Real Estate [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 176,478 177,977
Performing [Member] | Construction and Land Development [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 113,534 115,326
Performing [Member] | Commercial and Industrial [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 88,960 83,244
Performing [Member] | Consumer and Other [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 6,914 7,475
Impaired Loans [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 2,074 2,015
Impaired Loans [Member] | Commercial Real Estate [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 238 119
Impaired Loans [Member] | Consumer Real Estate [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 993 821
Impaired Loans [Member] | Construction and Land Development [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 634 865
Impaired Loans [Member] | Commercial and Industrial [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans 209 210
Impaired Loans [Member] | Consumer and Other [Member] | All Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total loans $ 0 $ 0
v3.7.0.1
Loans and Allowance for Loan Losses - ALL by Loan Classification (Details) - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses $ 5,152 $ 5,105 $ 4,354
All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 5,152 5,105  
Purchased Credit Impaired Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 0 0  
Performing [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 5,080 5,101  
Impaired Loans [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 72 4  
Commercial Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 2,329 2,369 1,906
Commercial Real Estate [Member] | Performing [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 2,329 2,369  
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 1,466 1,382 1,015
Consumer Real Estate [Member] | Performing [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 1,398 1,382  
Consumer Real Estate [Member] | Impaired Loans [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 68 0  
Construction and Land Development [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 706 717 627
Construction and Land Development [Member] | Performing [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 706 717  
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 558 520 777
Commercial and Industrial [Member] | Performing [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 554 516  
Commercial and Industrial [Member] | Impaired Loans [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 4 4  
Consumer and Other [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 93 117 $ 29
Consumer and Other [Member] | Performing [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses 93 117  
Consumer and Other [Member] | Impaired Loans [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Allowance for loan losses $ 0 $ 0  
v3.7.0.1
Loans and Allowance for Loan Losses - ALL Roll Forward (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Dec. 31, 2016
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance $ 5,105,000 $ 4,354,000 $ 4,354,000
Loans charged off (25,000)   (306,000)
Recoveries of loans charged off 60,000   269,000
Provision (reallocation) charged to operating expense 12,450 137,557 788,000
Ending balance 5,152,000   5,105,000
Commercial Real Estate [Member]      
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance 2,369,000 1,906,000 1,906,000
Loans charged off 0   0
Recoveries of loans charged off 5,000   45,000
Provision (reallocation) charged to operating expense (45,000)   418,000
Ending balance 2,329,000   2,369,000
Consumer Real Estate [Member]      
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance 1,382,000 1,015,000 1,015,000
Loans charged off 0   (102,000)
Recoveries of loans charged off 17,000   76,000
Provision (reallocation) charged to operating expense 67,000   393,000
Ending balance 1,466,000   1,382,000
Construction and Land Development [Member]      
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance 717,000 627,000 627,000
Loans charged off 0   (14,000)
Recoveries of loans charged off 5,000   22,000
Provision (reallocation) charged to operating expense (16,000)   82,000
Ending balance 706,000   717,000
Commercial and Industrial [Member]      
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance 520,000 777,000 777,000
Loans charged off (3,000)   (35,000)
Recoveries of loans charged off 16,000   58,000
Provision (reallocation) charged to operating expense 25,000   (280,000)
Ending balance 558,000   520,000
Consumer and Other [Member]      
Allowance for Loan and Lease Losses [Roll Forward]      
Beginning balance 117,000 $ 29,000 29,000
Loans charged off (22,000)   (155,000)
Recoveries of loans charged off 17,000   68,000
Provision (reallocation) charged to operating expense (19,000)   175,000
Ending balance $ 93,000   $ 117,000
v3.7.0.1
Loans and Allowance for Loan Losses - Loan Risk Rating (Details) - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Financing Receivable, Recorded Investment [Line Items]    
Total loans $ 807,539 $ 813,376
Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 407,899 415,208
Consumer Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 186,345 187,802
Construction and Land Development [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 115,674 117,869
Commercial and Industrial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 90,707 85,022
Consumer and Other [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 6,914 7,475
Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 780,938 786,183
Non PCI Loans [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 777,194 782,438
Non PCI Loans [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 1,473 1,531
Non PCI Loans [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 332 341
Non PCI Loans [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 1,939 1,873
Non PCI Loans [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Non PCI Loans [Member] | Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 393,216 400,265
Non PCI Loans [Member] | Commercial Real Estate [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 392,338 399,505
Non PCI Loans [Member] | Commercial Real Estate [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 635 640
Non PCI Loans [Member] | Commercial Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Non PCI Loans [Member] | Commercial Real Estate [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 243 120
Non PCI Loans [Member] | Commercial Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Non PCI Loans [Member] | Consumer Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 177,471 178,798
Non PCI Loans [Member] | Consumer Real Estate [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 176,001 177,466
Non PCI Loans [Member] | Consumer Real Estate [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 514 550
Non PCI Loans [Member] | Consumer Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 103 104
Non PCI Loans [Member] | Consumer Real Estate [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 853 678
Non PCI Loans [Member] | Consumer Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Non PCI Loans [Member] | Construction and Land Development [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 114,168 116,191
Non PCI Loans [Member] | Construction and Land Development [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 113,447 115,237
Non PCI Loans [Member] | Construction and Land Development [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 87 89
Non PCI Loans [Member] | Construction and Land Development [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Non PCI Loans [Member] | Construction and Land Development [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 634 865
Non PCI Loans [Member] | Construction and Land Development [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Non PCI Loans [Member] | Commercial and Industrial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 89,169 83,454
Non PCI Loans [Member] | Commercial and Industrial [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 88,723 82,992
Non PCI Loans [Member] | Commercial and Industrial [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 237 252
Non PCI Loans [Member] | Commercial and Industrial [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Non PCI Loans [Member] | Commercial and Industrial [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 209 210
Non PCI Loans [Member] | Commercial and Industrial [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Non PCI Loans [Member] | Consumer and Other [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 6,914 7,475
Non PCI Loans [Member] | Consumer and Other [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 6,685 7,238
Non PCI Loans [Member] | Consumer and Other [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Non PCI Loans [Member] | Consumer and Other [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 229 237
Non PCI Loans [Member] | Consumer and Other [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Non PCI Loans [Member] | Consumer and Other [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 26,601 27,193
Purchased Credit Impaired Loans [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 20,590 21,173
Purchased Credit Impaired Loans [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 2,834 3,289
Purchased Credit Impaired Loans [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 183 12
Purchased Credit Impaired Loans [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 2,967 2,692
Purchased Credit Impaired Loans [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 27 27
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 14,683 14,943
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 11,617 11,836
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 890 1,045
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 2,176 2,062
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 8,874 9,004
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 6,816 6,811
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 1,280 1,577
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 778 616
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 1,506 1,678
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 848 1,019
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 645 645
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 13 14
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 1,538 1,568
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 1,309 1,507
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 19 22
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 183 12
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 27 27
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans 0 0
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member] | Doubtful [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Total loans $ 0 $ 0
v3.7.0.1
Loans and Allowance for Loan Losses - Past Due Loans (Details) - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual $ 1,445 $ 1,415
Total Past Due and NonAccrual 3,261 4,168
Current Loans 777,677 782,015
Total loans 807,539 813,376
Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 124 0
Total Past Due and NonAccrual 320 395
Current Loans 392,896 399,870
Total loans 407,899 415,208
Consumer Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 523 386
Total Past Due and NonAccrual 1,703 1,780
Current Loans 175,768 177,018
Total loans 186,345 187,802
Construction and Land Development [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 634 865
Total Past Due and NonAccrual 668 1,555
Current Loans 113,500 114,636
Total loans 115,674 117,869
Commercial and Industrial [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 164 164
Total Past Due and NonAccrual 550 421
Current Loans 88,619 83,033
Total loans 90,707 85,022
Consumer and Other [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Nonaccrual 0 0
Total Past Due and NonAccrual 20 17
Current Loans 6,894 7,458
Total loans 6,914 7,475
Purchased Credit Impaired Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans 26,601 27,193
Purchased Credit Impaired Loans [Member] | Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans 14,683 14,943
Purchased Credit Impaired Loans [Member] | Consumer Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans 8,874 9,004
Purchased Credit Impaired Loans [Member] | Construction and Land Development [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans 1,506 1,678
Purchased Credit Impaired Loans [Member] | Commercial and Industrial [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans 1,538 1,568
Purchased Credit Impaired Loans [Member] | Consumer and Other [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans 0 0
30-89 Days Past Due and Accruing [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Recorded investment, past due 1,789 2,054
30-89 Days Past Due and Accruing [Member] | Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Recorded investment, past due 196 395
30-89 Days Past Due and Accruing [Member] | Consumer Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Recorded investment, past due 1,180 695
30-89 Days Past Due and Accruing [Member] | Construction and Land Development [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Recorded investment, past due 34 690
30-89 Days Past Due and Accruing [Member] | Commercial and Industrial [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Recorded investment, past due 359 257
30-89 Days Past Due and Accruing [Member] | Consumer and Other [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Recorded investment, past due 20 17
Past Due 90 Days or More and Accruing [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Recorded investment, past due 27 699
Past Due 90 Days or More and Accruing [Member] | Commercial Real Estate [Member]    
Financing Receivable, Recorded Investment, 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, Recorded Investment, Past Due [Line Items]    
Recorded investment, past due 0 699
Past Due 90 Days or More and Accruing [Member] | Construction and Land Development [Member]    
Financing Receivable, Recorded Investment, 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, Recorded Investment, Past Due [Line Items]    
Recorded investment, past due 27 0
Past Due 90 Days or More and Accruing [Member] | Consumer and Other [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Recorded investment, past due $ 0 $ 0
v3.7.0.1
Loans and Allowance for Loan Losses - Impaired Loan Portfolio (Details) - Non PCI Loans [Member] - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Financing Receivable, Impaired [Line Items]    
Impaired loans without a valuation allowance, Recorded Investment $ 1,285 $ 1,851
Impaired loans without a valuation allowance, Unpaid Principal Balance 1,303 1,879
Impaired loans without a valuation allowance, Average Recorded Investment 1,570 4,659
Impaired loans without a valuation allowance, Interest Income Recognized 10 180
Impaired loans with a valuation allowance, Recorded Investment 789 164
Impaired loans with a valuation allowance, Unpaid Principal Balance 887 243
Impaired loans with a valuation allowance, Related Allowance 72 4
Impaired loans with a valuation allowance, Average Recorded Investment 477 306
Impaired loans with a valuation allowance, Interest Income Recognized 5 70
Total impaired loans, Recorded Investment 2,074 2,015
Total impaired loans, Unpaid Principal Balance 2,190 2,122
Total impaired loans, Average Recorded Investment 2,047 4,965
Total impaired loans, Interest Income Recognized 15 250
Commercial Real Estate [Member]    
Financing Receivable, Impaired [Line Items]    
Impaired loans without a valuation allowance, Recorded Investment 238 119
Impaired loans without a valuation allowance, Unpaid Principal Balance 241 119
Impaired loans without a valuation allowance, Average Recorded Investment 179 1,311
Impaired loans without a valuation allowance, Interest Income Recognized 3 73
Impaired loans with a valuation allowance, Recorded Investment 0 0
Impaired loans with a valuation allowance, Unpaid Principal Balance 0 0
Impaired loans with a valuation allowance, Related Allowance 0 0
Impaired loans with a valuation allowance, Average Recorded Investment 0 0
Impaired loans with a valuation allowance, Interest Income Recognized 0 0
Consumer Real Estate [Member]    
Financing Receivable, Impaired [Line Items]    
Impaired loans without a valuation allowance, Recorded Investment 368 821
Impaired loans without a valuation allowance, Unpaid Principal Balance 383 849
Impaired loans without a valuation allowance, Average Recorded Investment 595 2,334
Impaired loans without a valuation allowance, Interest Income Recognized 6 100
Impaired loans with a valuation allowance, Recorded Investment 625 0
Impaired loans with a valuation allowance, Unpaid Principal Balance 644 0
Impaired loans with a valuation allowance, Related Allowance 68 0
Impaired loans with a valuation allowance, Average Recorded Investment 313 0
Impaired loans with a valuation allowance, Interest Income Recognized 5 0
Construction and Land Development [Member]    
Financing Receivable, Impaired [Line Items]    
Impaired loans without a valuation allowance, Recorded Investment 634 865
Impaired loans without a valuation allowance, Unpaid Principal Balance 634 865
Impaired loans without a valuation allowance, Average Recorded Investment 750 967
Impaired loans without a valuation allowance, Interest Income Recognized 0 3
Impaired loans with a valuation allowance, Recorded Investment 0 0
Impaired loans with a valuation allowance, Unpaid Principal Balance 0 0
Impaired loans with a valuation allowance, Related Allowance 0 0
Impaired loans with a valuation allowance, Average Recorded Investment 0 0
Impaired loans with a valuation allowance, Interest Income Recognized 0 0
Commercial and Industrial [Member]    
Financing Receivable, Impaired [Line Items]    
Impaired loans without a valuation allowance, Recorded Investment 45 46
Impaired loans without a valuation allowance, Unpaid Principal Balance 45 46
Impaired loans without a valuation allowance, Average Recorded Investment 46 47
Impaired loans without a valuation allowance, Interest Income Recognized 1 4
Impaired loans with a valuation allowance, Recorded Investment 164 164
Impaired loans with a valuation allowance, Unpaid Principal Balance 243 243
Impaired loans with a valuation allowance, Related Allowance 4 4
Impaired loans with a valuation allowance, Average Recorded Investment 164 306
Impaired loans with a valuation allowance, Interest Income Recognized 0 70
Consumer and Other [Member]    
Financing Receivable, Impaired [Line Items]    
Impaired loans without a valuation allowance, Recorded Investment 0 0
Impaired loans without a valuation allowance, Unpaid Principal Balance 0 0
Impaired loans without a valuation allowance, Average Recorded Investment 0 0
Impaired loans without a valuation allowance, Interest Income Recognized 0 0
Impaired loans with a valuation allowance, Recorded Investment 0 0
Impaired loans with a valuation allowance, Unpaid Principal Balance 0 0
Impaired loans with a valuation allowance, Related Allowance 0 0
Impaired loans with a valuation allowance, Average Recorded Investment 0 0
Impaired loans with a valuation allowance, Interest Income Recognized $ 0 $ 0
v3.7.0.1
Loans and Allowance for Loan Losses - Troubled Debt Restructuring (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2017
USD ($)
contract
Dec. 31, 2016
USD ($)
contract
Consumer Real Estate [Member]    
Financing Receivable, Modifications [Line Items]    
Number of Contracts | contract 1  
Pre-Modification Outstanding Recorded Investment $ 138  
Post-Modification Outstanding Recorded Investment $ 138  
Construction and Land Development [Member]    
Financing Receivable, Modifications [Line Items]    
Number of Contracts | contract   1
Pre-Modification Outstanding Recorded Investment   $ 278
Post-Modification Outstanding Recorded Investment   $ 278
Commercial and Industrial [Member]    
Financing Receivable, Modifications [Line Items]    
Number of Contracts | contract   1
Pre-Modification Outstanding Recorded Investment   $ 164
Post-Modification Outstanding Recorded Investment   $ 164
v3.7.0.1
Loans and Allowance for Loan Losses - Purchased Credit Impaired Loans (Details) - Purchased Credit Impaired Loans [Member] - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Total loans $ 34,803 $ 35,619
Less remaining purchase discount (8,202) (8,426)
Total loans, net of purchase discount 26,601 27,193
Less: Allowance for loan losses 0 0
Carrying amount, net of allowance 26,601 27,193
Commercial Real Estate [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Total loans 18,105 18,473
Consumer Real Estate [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Total loans 11,954 12,111
Construction and Land Development [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Total loans 2,364 2,553
Commercial and Industrial [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Total loans 2,380 2,482
Consumer and Other [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Total loans $ 0 $ 0
v3.7.0.1
Loans and Allowance for Loan Losses - Accretable Yield Roll Forward (Details) - Purchased Credit Impaired Loans [Member] - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]    
Accretable yield, beginning of period $ 8,950 $ 10,216
Additions 0 0
Accretion income (697) (629)
Reclassification to accretable 244 (41)
Other changes, net (15) 60
Accretable yield $ 8,482 $ 9,606
v3.7.0.1
Loans and Allowance for Loan Losses - Narrative (Details) - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Financing Receivable, Modifications [Line Items]    
Loans on nonaccrual $ 1,445 $ 1,415
Trouble Debt Restructuring [Member]    
Financing Receivable, Modifications [Line Items]    
Loans that met criteria for restructured 552 608
Loans on nonaccrual $ 251 $ 442
v3.7.0.1
Employee Benefit Plans - Stock Option Activity (Details) - Officer and Employee Plans [Member] - $ / shares
3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Number    
Shares, Outstanding 717,524 817,414
Shares, Exercised (473,558) (89,556)
Shares, Forfeited (18,524) (10,334)
Shares, Outstanding 225,442 717,524
Weighted Average Exercisable Price    
Weighted Average Exercisable Price, Outstanding (in dollars per share) $ 10.57 $ 10.62
Weighted Average Exercisable Price Exercised (in dollars per share) 9.61 8.98
Weighted Average Exercisable Price Forfeited (in dollars per share) 20.27 28.49
Weighted Average Exercise Price, Outstanding (in dollars per share) $ 11.78 $ 10.57
v3.7.0.1
Employee Benefit Plans - Options Outstanding by Exercise Price Range (Details) - Officer and Employee Plans [Member] - $ / shares
3 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]      
Exercise Prices (in dollars per share) $ 11.78 $ 10.57 $ 10.62
Number Outstanding (in shares) 225,442 717,524 817,414
Options Outstanding, Weighted Average Remaining Life 5 years 1 month 18 days    
Options Outstanding, Weighted Average Exercise Price (in dollars per share) $ 11.78    
Options, Number Exercisable (in shares) 186,801    
Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 11.11    
6.20 [Member]      
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]      
Exercise Prices (in dollars per share) $ 6.20    
Number Outstanding (in shares) 750    
Options Outstanding, Weighted Average Remaining Life 4 years 18 days    
Options Outstanding, Weighted Average Exercise Price (in dollars per share) $ 6.20    
Options, Number Exercisable (in shares) 750    
Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 6.20    
6.60 [Member]      
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]      
Exercise Prices (in dollars per share) $ 6.60    
Number Outstanding (in shares) 41,500    
Options Outstanding, Weighted Average Remaining Life 5 years 18 days    
Options Outstanding, Weighted Average Exercise Price (in dollars per share) $ 6.60    
Options, Number Exercisable (in shares) 41,500    
Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 6.60    
6.80 [Member]      
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]      
Exercise Prices (in dollars per share) $ 6.80    
Number Outstanding (in shares) 19,375    
Options Outstanding, Weighted Average Remaining Life 3 years 10 months 24 days    
Options Outstanding, Weighted Average Exercise Price (in dollars per share) $ 6.80    
Options, Number Exercisable (in shares) 19,375    
Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 6.80    
9.48 [Member]      
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]      
Exercise Prices (in dollars per share) $ 9.48    
Number Outstanding (in shares) 29,375    
Options Outstanding, Weighted Average Remaining Life 5 years 10 months 24 days    
Options Outstanding, Weighted Average Exercise Price (in dollars per share) $ 9.48    
Options, Number Exercisable (in shares) 29,375    
Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 9.48    
9.52 [Member]      
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]      
Exercise Prices (in dollars per share) $ 9.52    
Number Outstanding (in shares) 525    
Options Outstanding, Weighted Average Remaining Life 3 months 18 days    
Options Outstanding, Weighted Average Exercise Price (in dollars per share) $ 9.52    
Options, Number Exercisable (in shares) 525    
Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 9.52    
9.60 [Member]      
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]      
Exercise Prices (in dollars per share) $ 9.60    
Number Outstanding (in shares) 37,625    
Options Outstanding, Weighted Average Remaining Life 6 years 10 months 24 days    
Options Outstanding, Weighted Average Exercise Price (in dollars per share) $ 9.60    
Options, Number Exercisable (in shares) 37,625    
Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 9.60    
10.48 [Member]      
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]      
Exercise Prices (in dollars per share) $ 10.48    
Number Outstanding (in shares) 20,513    
Options Outstanding, Weighted Average Remaining Life 4 months 18 days    
Options Outstanding, Weighted Average Exercise Price (in dollars per share) $ 10.48    
Options, Number Exercisable (in shares) 20,513    
Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 10.48    
11.67 [Member]      
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]      
Exercise Prices (in dollars per share) $ 11.67    
Number Outstanding (in shares) 3,250    
Options Outstanding, Weighted Average Remaining Life 3 years 9 months 18 days    
Options Outstanding, Weighted Average Exercise Price (in dollars per share) $ 11.67    
Options, Number Exercisable (in shares) 3,250    
Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 11.67    
14.40 [Member]      
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]      
Exercise Prices (in dollars per share) $ 14.40    
Number Outstanding (in shares) 15,180    
Options Outstanding, Weighted Average Remaining Life 1 year 10 months 24 days    
Options Outstanding, Weighted Average Exercise Price (in dollars per share) $ 14.40    
Options, Number Exercisable (in shares) 15,180    
Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 14.40    
15.05 [Member]      
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]      
Exercise Prices (in dollars per share) $ 15.05    
Number Outstanding (in shares) 42,745    
Options Outstanding, Weighted Average Remaining Life 8 years 5 months 18 days    
Options Outstanding, Weighted Average Exercise Price (in dollars per share) $ 15.05    
Options, Number Exercisable (in shares) 4,104    
Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 15.05    
31.96 [Member]      
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]      
Exercise Prices (in dollars per share) $ 31.96    
Number Outstanding (in shares) 13,916    
Options Outstanding, Weighted Average Remaining Life 10 months 24 days    
Options Outstanding, Weighted Average Exercise Price (in dollars per share) $ 31.96    
Options, Number Exercisable (in shares) 13,916    
Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 31.96    
60.80 [Member]      
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]      
Exercise Prices (in dollars per share) $ 60.80    
Number Outstanding (in shares) 688    
Options Outstanding, Weighted Average Remaining Life 1 month 18 days    
Options Outstanding, Weighted Average Exercise Price (in dollars per share) $ 60.80    
Options, Number Exercisable (in shares) 688    
Options Exercisable, Weighted Average Exercise Price (in dollars per share) $ 60.80    
v3.7.0.1
Employee Benefit Plans - Non-vested Options (Details) - $ / shares
3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Number    
Number of Shares, Nonvested, beginning balance 47,970  
Number of Shares, Granted 0 0
Number of Shares, Vested 0  
Number of Shares, Forfeited/expired (9,329)  
Number of Shares, Nonvested, ending balance 38,641 47,970
Weighted Average Grant-Date Fair Value    
Weighted Average Grant-Date Fair Value, Nonvested, beginning balance (in dollars per share) $ 12.31  
Weighted Average Grant-Date Fair Value, Granted (in dollars per share) 0.00  
Weighted Average Grant-Date Fair Value, Vested (in dollars per share) 0.00  
Weighted Average Grant-Date Fair Value, Forfeited/expired (in dollars per share) 12.31  
Weighted Average Grant-Date Fair Value, Nonvested, ending balance (in dollars per share) $ 12.31 $ 12.31
v3.7.0.1
Employee Benefit Plans - Narrative (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Dec. 31, 2016
Defined Benefit Plan Disclosure [Line Items]      
Share-based compensation expense $ 26,812 $ 33,635  
Options vested in period, fair value 0 19,425  
Deferred tax expense from stock options exercised 0 0  
Options, exercises in period, intrinsic value 5,024,759    
Options, outstanding, intrinsic value 2,266,259    
Options, exercisable, intrinsic value 2,034,800    
Proceeds from stock options exercised $ 4,260,734    
Number of shares granted 0   0
Deferred Salary Reduction Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Defined contribution plan, cost recognized $ 102,716 $ 90,856  
Director [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Direct stock grant expense 31,791    
Stock Options [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Unrecognized compensation costs $ 340,542    
Unrecognized compensation costs, period for recognition 1 year 4 months 24 days    
Legacy Cornerstone Bancshares, Inc. Long-Term Incentive Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Exercise price, not less than (as a percent) 100.00%    
Smart Bank Stock Option Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Number of shares authorized 525,000    
Exercise price, not less than (as a percent) 100.00%    
Legacy Smart Financial Inc 2010 Incentive Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Number of shares authorized 525,000    
Exercise price, not less than (as a percent) 100.00%    
Stock Incentive Plan Two Thousand Fifteen [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Exercise price, not less than (as a percent) 110.00%    
Number Outstanding (in shares) 2,000,000    
Term of options, no more than 10 years    
Voting power held by participant (as a percent) 10.00%    
Term of option to participants with more than ten percent voting power 5 years    
Percentage Of incentive stock options vesting on second anniversary 30.00%    
Percentage Of incentive stock options vesting on third anniversary 30.00%    
Percentage Of incentive stock options vesting on fourth anniversary 40.00%    
Percentage Of nonqualified stock options vesting on first anniversary 50.00%    
Percentage Of nonqualified stock options vesting on second anniversary 50.00%    
401 (k) Matching Range One [Member] | Deferred Salary Reduction Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Employer matching contribution, percent of employees gross pay 3.00%    
Employer matching contribution, percent of match 100.00%    
401 (k) Matching Range Two [Member] | Deferred Salary Reduction Plan [Member]      
Defined Benefit Plan Disclosure [Line Items]      
Employer matching contribution, percent of employees gross pay 2.00%    
Employer matching contribution, percent of match 50.00%    
v3.7.0.1
Commitments and Contingent Liabilities (Details)
$ in Millions
3 Months Ended
Mar. 31, 2017
USD ($)
Line of Credit Facility [Line Items]  
Commitments to extend credit $ 133.4
Standby letters of credit $ 2.9
Standby Letters of Credit [Member]  
Line of Credit Facility [Line Items]  
Standby letter of credit term, or less 2 years
v3.7.0.1
Fair Value Disclosures - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale $ 137,133 $ 129,422
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 0 0
Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 137,133 129,422
Significant Other Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 0 0
U.S. Government-sponsored enterprises (GSEs) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 17,798 17,723
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]    
Total securities available for sale 0 0
U.S. Government-sponsored enterprises (GSEs) [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 17,798 17,723
U.S. Government-sponsored enterprises (GSEs) [Member] | Significant Other Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 0 0
Mortgage-backed securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 110,051 103,680
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]    
Total securities available for sale 0 0
Mortgage-backed securities [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 110,051 103,680
Mortgage-backed securities [Member] | Significant Other Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 0 0
Other debt securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 946  
Other debt securities [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 946  
Municipal securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 8,338 8,019
Municipal securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 0 0
Municipal securities [Member] | Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 8,338 8,019
Municipal securities [Member] | Significant Other Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale $ 0 $ 0
v3.7.0.1
Fair Value Disclosures - Assets and Liabilities Measured on Nonrecurring Basis (Details) - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Impaired loans $ 717 $ 239
Foreclosed assets 2,371 2,386
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
Foreclosed assets 0 0
Significant Other Observable Inputs (Level 2) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Impaired loans 0 0
Foreclosed assets 0 0
Significant Other Unobservable Inputs (Level 3) [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Impaired loans 717 239
Foreclosed assets $ 2,371 $ 2,386
v3.7.0.1
Fair Value Disclosures - Significant Unobservable Inputs Used to Value Level 3 Assets (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2017
Dec. 31, 2016
Impaired loans [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets measured at fair value on non-recurring basis $ 717 $ 239
Valuation Technique Appraisal Cash Flow
Significant Other Unobservable Input Discounted Cash Flow / Appraisal Discounts Discounted Cash Flow / Appraisal Discounts
Weighted Average of Input (as a percent) 9.10% 2.40%
Foreclosed assets [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Assets measured at fair value on non-recurring basis $ 2,371 $ 2,386
Valuation Technique Appraisal Appraisal
Significant Other Unobservable Input Appraisal Discounts Appraisal Discounts
Weighted Average of Input (as a percent) 22.50% 12.20%
v3.7.0.1
Fair Value Disclosures - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($)
Mar. 31, 2017
Dec. 31, 2016
Mar. 31, 2016
Dec. 31, 2015
Assets:        
Cash and cash equivalents, Carrying Amount $ 55,547,721 $ 68,748,308 $ 68,932,872 $ 79,964,633
Securities available for sale, Carrying Amount 137,133,000 129,422,000    
Restricted investments, Carrying Amount 5,627,950 5,627,950    
Loans, net, Carrying Amount 802,387,400 808,271,003    
Cash and cash equivalents, Estimated Fair Value 55,548,000 68,748,000    
Securities available for sale, Estimated Fair Value 137,133,000 129,422,000    
Loans, net, Estimated Fair Value 795,077,000 803,057,000    
Liabilities:        
Noninterest-bearing demand deposits, Carrying Amount 160,672,567 153,482,650    
Interest-bearing demand deposits, Carrying Amount 167,433,130 162,702,457    
Money Market and Savings deposits, Carrying Amount 274,993,000 274,605,000    
Time deposits, Carrying Amount 286,600,177 316,275,340    
Securities sold under agreements to repurchase, Carrying Amount 23,153,397 26,621,984    
Federal Home Loan Bank advances and other borrowings, Carrying Amount 60,000 18,505,390    
Noninterest-bearing demand deposits, Estimated Fair Value 160,673,000 153,483,000    
Interest-bearing demand deposits, Estimated Fair Value 167,433,000 162,702,000    
Money Market and Savings deposits, Estimated Fair Value 274,993,000 274,605,000    
Time deposits, Estimated Fair Value 286,414,000 316,734,000    
Securities sold under agreements to repurchase, Estimated Fair Value 23,153,000 26,622,000    
Federal Home Loan Bank advances and other borrowings, Estimated Fair Value $ 60,000 $ 18,505,000    
v3.7.0.1
Small Business Lending Fund - Narrative (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 06, 2017
Jan. 30, 2017
Feb. 04, 2016
Mar. 31, 2017
Mar. 31, 2016
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2011
Class of Stock [Line Items]                
Preferred stock, shares issued       0   12,000    
Preferred stock, dividend rate (as a percent)     9.00%       1.00%  
Preferred stock dividends       $ 195,000 $ 212,000 $ 1,022,000 $ 120,000  
Common stock, par value (in dollars per share)       $ 1   $ 1    
Proceeds from issuance of common stock       $ 37,516,178 77,707      
Payments for redemption of preferred stock $ 12,000,000              
Payment of dividends on preferred stock $ 195,000     $ 195,000 $ 212,000      
SBLF Program [Member]                
Class of Stock [Line Items]                
Preferred stock, shares issued               12,000
Share price (in dollars per share)               $ 1,000
Preferred stock, redemption price (in dollars per share)               $ 1,000
Common Stock [Member]                
Class of Stock [Line Items]                
Issuance of common stock in public offering (in shares)   2,010,084            
Common stock, par value (in dollars per share)   $ 1.00            
Proceeds from issuance of common stock   $ 33,200,000