SMARTFINANCIAL INC., 10-Q filed on 5/16/2016
Quarterly Report
v3.4.0.3
Document And Entity Information - shares
3 Months Ended
Mar. 31, 2016
May. 06, 2016
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2016  
Document Fiscal Year Focus 2016  
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   5,818,204
v3.4.0.3
CONSOLIDATED BALANCE SHEETS - USD ($)
Mar. 31, 2016
Dec. 31, 2015
ASSETS    
Cash and due from banks $ 45,906,750 $ 40,358,647
Interest-bearing deposits at other financial institutions 17,921,122 33,405,986
Federal funds sold 5,105,000 6,200,000
Total cash and cash equivalents 68,932,872 79,964,633
Securities available for sale 157,560,615 166,413,218
Restricted investments, at cost 4,451,250 4,451,050
Loans, net of allowance for loan losses of $4,527,547 at March 31, 2016 and $4,354,513 at December 31, 2015 736,412,390 723,360,786
Bank premises and equipment, net 25,679,675 25,037,510
Foreclosed assets 5,132,706 5,357,950
Goodwill and core deposit intangible, net 6,847,754 6,941,107
Other assets 11,206,876 12,436,625
Total assets 1,016,224,138 1,023,962,879
Deposits:    
Noninterest-bearing demand deposits 132,481,514 131,418,580
Interest-bearing demand deposits 161,453,751 149,423,954
Money market and savings deposits 241,499,943 236,900,945
Time deposits 323,676,013 340,739,072
Total deposits 859,111,221 858,482,551
Securities sold under agreement to repurchase 20,747,022 28,068,215
Federal Home Loan Bank advances and other borrowings 30,125,169 34,187,462
Accrued expenses and other liabilities 4,252,577 3,047,792
Total liabilities 914,235,989 923,786,020
Stockholders' equity:    
Preferred stock - $1 par value; 2,000,000 shares authorized; 12,000 issued and outstanding in 2016 and 2015 12,000 12,000
Common stock - $1 par value; 40,000,000 shares authorized; 5,817,204 and 5,806,477 shares issued and outstanding in 2016 and 2015, respectively 5,817,204 5,806,477
Additional paid-in capital 82,716,630 82,616,015
Retained earnings 13,231,351 12,094,488
Accumulated other comprehensive income (loss) 210,964 (352,121)
Total stockholders' equity 101,988,149 100,176,859
Total liabilities and stockholders' equity $ 1,016,224,138 $ 1,023,962,879
v3.4.0.3
CONSOLIDATED BALANCE SHEETS [Parenthetical] - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Allowance for loan losses (in dollars) $ 4,528 $ 4,354
Preferred Stock, Par value (in dollars per share) $ 1 $ 1
Preferred stock, shares authorized 2,000,000 2,000,000
Preferred stock, shares issued 12,000 12,000
Preferred stock, shares outstanding 12,000 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 5,817,204 5,806,477
Common stock, shares outstanding 5,817,204 5,806,477
v3.4.0.3
CONSOLIDATED STATEMENTS OF INCOME - USD ($)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
INTEREST INCOME    
Loans, including fees $ 9,374,457 $ 4,518,547
Securities and interest bearing deposits at other financial institutions 716,580 417,903
Federal funds sold and other earning assets 63,309 28,161
Total interest income 10,154,346 4,964,611
INTEREST EXPENSE    
Deposits 961,268 502,655
Securities sold under agreements to repurchase 16,460 2,951
Federal Home Loan Bank advances and other borrowings 45,286 694
Total interest expense 1,023,014 506,300
Net interest income before provision for loan losses 9,131,332 4,458,311
Provision for loan losses 137,557 283,942
Net interest income after provision for loan losses 8,993,775 4,174,369
NONINTEREST INCOME    
Customer service fees 295,803 130,402
Gain on sale of securities 83,263 0
Gain on sale of loans and other assets 221,925 64,681
Gain on sale of foreclosed assets 57,977 382,657
Other noninterest income 411,864 230,123
Total noninterest income 1,070,832 807,863
NONINTEREST EXPENSES    
Salaries and employee benefits 4,495,008 2,300,614
Net occupancy and equipment expense 1,018,428 543,901
Depository insurance 135,803 96,636
Foreclosed assets 56,658 41,348
Advertising 173,447 110,663
Data processing 341,380 209,713
Professional services 455,173 352,098
Amortization of intangible assets 93,353 40,775
Service contracts 285,627 159,070
Other operating expenses 897,021 425,704
Total noninterest expenses 7,951,898 4,280,522
Income before income tax expense 2,112,709 701,710
Income tax expense 763,846 363,318
Net income 1,348,863 338,392
Preferred stock dividends 212,000 30,000
Net income available to common stockholders $ 1,136,863 $ 308,392
EARNINGS PER COMMON SHARE    
Basic $ 0.2 $ 0.1
Diluted $ 0.19 $ 0.09
Weighted average common shares outstanding    
Basic 5,807,488 2,965,783
Diluted 6,108,087 3,293,176
Dividends per share $ 0 $ 0
v3.4.0.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Net income $ 1,348,863 $ 338,392
Other comprehensive income , net of tax:    
Unrealized holding gains arising during the period, net of tax expense of $381,291 and $313,689 in 2016 and 2015, respectively 614,708 505,558
Reclassification adjustment for gains included in net income, net of tax expense of $31,640 and $- in 2016 and 2015, respectively (51,623) 0
Total other comprehensive income 563,085 505,558
Comprehensive income $ 1,911,948 $ 843,950
v3.4.0.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Parenthetical] - USD ($)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Unrealized holding gains (losses) arising during the period, net of tax expense (expense) benefit $ 381,291 $ 313,689
Reclassification adjustment for (gains) losses included in net income, net of tax expense (benefit) $ 31,640 $ 0
v3.4.0.3
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2016 - USD ($)
Total
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income [Member]
BALANCE at Dec. 31, 2015 $ 100,176,859 $ 12,000 $ 5,806,477 $ 82,616,015 $ 12,094,488 $ (352,121)
BALANCE (in shares) at Dec. 31, 2015   12,000 5,806,477      
Net income 1,348,863 $ 0 $ 0 0 1,348,863 0
Other comprehensive income 563,085 0 0 0 0 563,085
Exercise of stock options 77,707 $ 0 $ 10,727 66,980 0 0
Exercise of stock options (in shares)   0 10,727      
Cash dividend on preferred stock (212,000) $ 0 $ 0 0 (212,000) 0
Stock compensation expense 33,635 0 0 33,635 0 0
BALANCE at Mar. 31, 2016 $ 101,988,149 $ 12,000 $ 5,817,204 $ 82,716,630 $ 13,231,351 $ 210,964
BALANCE (in shares) at Mar. 31, 2016   12,000 5,817,204      
v3.4.0.3
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 1,348,863 $ 338,392
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 525,809 398,329
Provision for loan losses 137,557 283,942
Stock compensation expense 33,635 3,657
Gains from sale of securities (83,263) 0
Net gains from sale of loans and other assets (221,925) (64,681)
Net gains from sale of foreclosed assets (57,977) (382,657)
Changes in other assets and liabilities:    
Accrued interest receivable 106,932 2,377
Accrued interest payable 10,061 4,296
Other assets and liabilities 2,061,243 (209,647)
Net cash provided by operating activities 3,860,935 374,008
CASH FLOWS FROM INVESTING ACTIVITIES    
Proceeds from security sales, maturities, and paydowns 9,652,595 7,207,517
Purchase of restricted investments (200) 0
Loan originations and principal collections, net (12,967,236) (8,173,208)
Purchase of bank premises and equipment (971,967) (649,467)
Proceeds from sale of foreclosed assets 283,221 1,177,480
Net cash used in investing activities (4,003,587) (437,678)
CASH FLOWS FROM FINANCING ACTIVITIES    
Net increase in deposits 628,670 11,752,990
Net decrease in securities sold under agreements to repurchase (7,321,193) (5,151,311)
Issuance of common stock 77,707 0
Payment of dividends on preferred stock (212,000) (30,000)
Proceeds from Federal Home Loan Bank advances and other borrowings 18,000,000 0
Repayment of Federal Home Loan Bank advances and other borrowings (22,062,293) (12,000,000)
Net cash used in financing activities (10,889,109) (5,428,321)
NET DECREASE IN CASH AND CASH EQUIVALENTS (11,031,761) (5,491,991)
CASH AND CASH EQUIVALENTS, beginning of year 79,964,633 46,736,414
CASH AND CASH EQUIVALENTS, end of year 68,932,872 41,244,423
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION    
Cash paid during the period for interest 1,012,953 502,004
Cash paid during the period for taxes 0 500,000
NONCASH INVESTING AND FINANCING ACTIVITIES    
Change in unrealized losses on securities available for sale (912,736) 819,247
Acquisition of real estate through foreclosure 0 17,960
Financed sales of foreclosed assets $ 0 $ 0
v3.4.0.3
Presentation of Financial Information
3 Months Ended
Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]
Note 1. 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, 2016 and March 31, 2015 has not been audited. The information included herein should be read in conjunction with the Company’s 2015 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 appearing the in the 2015 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.
 
Reclassifications:
 
Certain amounts in the prior consolidated financial statements have been reclassified to conform to the current period presentation. The reclassifications had no effect on net income, total assets or stockholders’ equity as previously reported.
 
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, 2015 as filed with the Securities and Exchange Commission. Since December 31, 2015, there have been no significant changes in any accounting principles or practices, or in the method of applying any such principles or practices.
 
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.
v3.4.0.3
Business Combination
3 Months Ended
Mar. 31, 2016
Business Combinations [Abstract]  
Business Combination Disclosure [Text Block]
Note 2. Business Combination
 
On August 31, 2015 the Company, at the time named Cornerstone Bancshares, Inc., completed its merger with SmartFinancial, Inc (“Legacy SmartFinancial”), after which the Company changed its name to SmartFinancial, Inc. While Cornerstone was the acquiring entity for legal purposes, the merger was accounted for as a reverse merger using the acquisition method of accounting, in accordance with the provisions of FASB ASC 805-10 Business Combinations. Under this guidance, for accounting purposes, Legacy SmartFinancial is considered the acquirer in the merger, and as a result the historical financial statements of the combined entity are the historical financial statements of Legacy SmartFinancial.
 
The merger was effected by the issuance of shares of Cornerstone stock to shareholders of Legacy SmartFinancial. The assets and liabilities of Cornerstone as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of Legacy SmartFinancial. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill.
 
The following table details the preliminary estimated financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized:
 
Calculation of Purchase Price
 
 
 
 
Shares of CSBQ common stock outstanding as of August 31, 2015
 
 
6,643,341
 
Market price of CSBQ common stock on August 31, 2015
 
$
3.85
 
Estimated fair value of CSBQ common stock (in thousands)
 
 
25,577
 
Estimated fair value of CSBQ stock options (in thousands)
 
 
2,858
 
Total consideration (in thousands)
 
$
28,435
 
 
Allocation of Purchase Price (in thousands)
 
 
 
 
Total consideration above
 
$
28,435
 
Fair value of assets acquired and liabilities assumed:
 
 
 
 
Cash and cash equivalents
 
 
33,502
 
Investment securities available for sale
 
 
74,254
 
Loans
 
 
314,827
 
Premises and equipment
 
 
9,019
 
Bank owned life insurance
 
 
1,278
 
Core deposit intangible
 
 
2,750
 
Other real estate owned
 
 
5,672
 
Prepaid and other assets
 
 
4,301
 
Deposits
 
 
(349,462)
 
Securities sold under agreements to repurchase
 
 
(17,622)
 
FHLB advances and other borrowings
 
 
(42,307)
 
Payables and other liabilities
 
 
(11,943)
 
Total fair value of net assets acquired
 
 
24,269
 
Goodwill
 
$
4,166
 
 
As of March 31, 2016 there have not been any changes to the initial fair values recorded as part of the business combination.
v3.4.0.3
Earnings per share
3 Months Ended
Mar. 31, 2016
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
Note 3. Earnings per share
 
The following is a summary of the basic and diluted earnings per share for the three month periods ended March 31, 2016 and March 31, 2015.
 
 
 
Three Months Ended March 31,
 
 
 
2016
 
2015
 
Net income available to common shareholders
 
$
1,136,863
 
$
308,392
 
Weighted average common shares outstanding
 
 
5,807,488
 
 
2,965,783
 
Effect of dilutive stock options
 
 
300,599
 
 
327,393
 
Diluted shares
 
 
6,108,087
 
 
3,293,176
 
Basic earnings per common share
 
$
0.20
 
$
0.10
 
Diluted earnings per common share
 
$
0.19
 
$
0.09
 
 
For the three months ended March 31, 2016 and 2015, 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 are 18,100 and 0 antidilutive stock options as of March 31, 2016 and 2015, respectively.
v3.4.0.3
Securities
3 Months Ended
Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
Note 4. Securities
 
The amortized cost and fair value of securities available-for-sale at March 31, 2016 and December 31, 2015 are summarized as follows (in thousands):
 
 
 
March 31, 2016
 
 
 
 
 
 
Gross
 
Gross
 
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
 
 
 
Cost
 
Gains
 
Losses
 
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprises (GSEs)
 
$
17,732
 
$
97
 
$
-
 
$
17,829
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
 
 
7,582
 
 
83
 
 
(1)
 
 
7,664
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
131,905
 
 
593
 
 
(430)
 
 
132,068
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
157,219
 
$
773
 
$
(431)
 
$
157,561
 
 
 
 
December 31, 2015
 
 
 
 
 
 
Gross
 
Gross
 
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
 
 
 
Cost
 
Gains
 
Losses
 
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprises (GSEs)
 
$
22,745
 
$
48
 
$
(50)
 
$
22,743
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
 
 
7,614
 
 
52
 
 
(17)
 
 
7,649
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
136,625
 
 
375
 
 
(979)
 
 
136,021
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
166,984
 
$
475
 
$
(1,046)
 
$
166,413
 
 
At March 31, 2016, securities with a fair value totaling approximately $105,900,000 were pledged to secure public funds and securities sold under agreements to repurchase.
 
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 $-. For the three months ended March 31, 2015 there were no securities sold.
 
The amortized cost and estimated fair value of securities at March 31, 2016, 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
 
Fair
 
 
 
Cost
 
Value
 
Due in one year or less
 
$
1,949
 
$
1,952
 
Due from one year to five years
 
 
12,899
 
 
12,946
 
Due from five years to ten years
 
 
5,356
 
 
5,429
 
Due after ten years
 
 
5,110
 
 
5,166
 
 
 
 
25,314
 
 
25,493
 
Mortgage-backed securities
 
 
131,905
 
 
132,068
 
 
 
 
 
 
 
 
 
 
 
$
157,219
 
$
157,561
 
 
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, 2016 and December 31, 2015 (in thousands):
 
 
 
As of March 31, 2016
 
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
 
 
 
 
Gross
 
 
 
 
Gross
 
 
 
 
Gross
 
 
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
 
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
 
 
534
 
 
(1)
 
 
-
 
 
-
 
 
534
 
 
(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
34,957
 
 
(136)
 
 
12,127
 
 
(294)
 
 
47,084
 
 
(430)
 
 
 
$
35,491
 
$
(137)
 
$
12,127
 
$
(294)
 
$
47,618
 
$
(431)
 
 
 
 
As of December 31, 2015
 
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
 
 
 
 
Gross
 
 
 
 
Gross
 
 
 
 
Gross
 
 
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
 
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
 
U.S. Government- sponsored enterprises (GSEs)
 
$
8,464
 
$
(50)
 
$
-
 
$
-
 
$
8,464
 
$
(50)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
 
 
2,456
 
 
(17)
 
 
-
 
 
-
 
 
2,456
 
 
(17)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
72,641
 
 
(470)
 
 
16,325
 
 
(509)
 
 
88,966
 
 
(979)
 
 
 
$
83,561
 
$
(537)
 
$
16,325
 
$
(509)
 
$
99,886
 
$
(1,046)
 
 
At March 31, 2016, the categories of temporarily impaired securities, and management’s evaluation of those securities, are as follows:
 
U.S. Government-sponsored enterprises: At March 31, 2016, one investment in U.S. GSE securities had unrealized losses. This unrealized loss related principally to changes in market interest rates. The contractual terms of the investment does not permit the issuer to settle the security at a price less than the amortized cost bases of the investment. Because the Bank does not intend to sell the investment and it is more likely than not that the Bank will not be required to sell the investment before recovery of its amortized cost basis, which may be maturity, the Bank does not consider this investment to be other-than temporarily impaired at March 31, 2016.
 
Municipal securities: At March 31, 2016, two 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, 2016.
  
Mortgage-backed securities: At March 31, 2016, 34 (or thirty four) 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 those investments to be other-than-temporarily impaired at March 31, 2016.
v3.4.0.3
Loans and Allowance for Loan Losses
3 Months Ended
Mar. 31, 2016
Receivables [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
Note 5. Loans and Allowance for Loan Losses
 
Portfolio Segmentation:
 
At March 31, 2016 and December 31, 2015, loans are summarized as follows (in thousands):
 
 
 
March 31, 2016
 
December 31, 2015
 
 
 
PCI Loans
 
All Other
Loans
 
Total
 
PCI
Loans
 
All Other
Loans
 
Total
 
Commercial real estate
 
$
17,106
 
$
354,857
 
$
371,963
 
$
20,050
 
$
349,727
 
$
369,777
 
Consumer real estate
 
 
12,559
 
 
156,859
 
 
169,418
 
 
12,764
 
 
148,930
 
 
161,694
 
Construction and land development
 
 
2,612
 
 
107,976
 
 
110,588
 
 
2,695
 
 
102,783
 
 
105,478
 
Commercial and industrial
 
 
2,013
 
 
80,438
 
 
82,451
 
 
2,768
 
 
82,183
 
 
84,951
 
Consumer and other
 
 
-
 
 
6,520
 
 
6,520
 
 
-
 
 
5,815
 
 
5,815
 
Total loans
 
 
34,290
 
 
706,650
 
 
740,940
 
 
38,277
 
 
689,438
 
 
727,715
 
Less: Allowance for loan losses
 
 
(29)
 
 
(4,499)
 
 
(4,528)
 
 
-
 
 
(4,354)
 
 
(4,354)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, net
 
$
34,261
 
$
702,151
 
$
736,412
 
$
38,277
 
$
685,084
 
$
723,361
 
 
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.
 
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.
  
The composition of loans by loan classification for impaired and performing loan status at March 31, 2016 and December 31, 2015, is summarized in the tables below (amounts in thousands):
 
 
 
March 31, 2016
 
 
 
 
 
 
 
 
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
and Land
 
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Performing loans
 
$
352,906
 
$
153,175
 
$
106,906
 
$
80,005
 
$
6,520
 
$
699,512
 
Impaired loans
 
 
1,951
 
 
3,684
 
 
1,070
 
 
433
 
 
-
 
 
7,138
 
 
 
 
354,857
 
 
156,859
 
 
107,976
 
 
80,438
 
 
6,520
 
 
706,650
 
PCI loans
 
 
17,106
 
 
12,559
 
 
2,612
 
 
2,013
 
 
-
 
 
34,290
 
Total
 
$
371,963
 
$
169,418
 
$
110,588
 
$
82,451
 
$
6,520
 
$
740,940
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
and Land
 
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Performing loans
 
$
347,775
 
$
145,289
 
$
101,751
 
$
81,715
 
$
5,815
 
$
682,345
 
Impaired loans
 
 
1,952
 
 
3,641
 
 
1,032
 
 
468
 
 
-
 
 
7,093
 
 
 
 
349,727
 
 
148,930
 
 
102,783
 
 
82,183
 
 
5,815
 
 
689,438
 
PCI loans
 
 
20,050
 
 
12,764
 
 
2,695
 
 
2,768
 
 
-
 
 
38,277
 
Total loans
 
$
369,777
 
$
161,694
 
$
105,478
 
$
84,951
 
$
5,815
 
$
727,715
 
 
The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans as of March 31, 2016 and December 31, 2015 (amounts in thousands):
 
 
 
March 31, 2016
 
 
 
Commercial
 
Consumer
 
Construction
and Land
 
Commercial
and
 
Consumer
and
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
Other
 
Total
 
Performing loans
 
$
1,992
 
$
1,049
 
$
693
 
$
507
 
$
33
 
$
4,274
 
PCI loans
 
 
20
 
 
9
 
 
-
 
 
-
 
 
-
 
 
29
 
Impaired loans
 
 
-
 
 
-
 
 
-
 
 
225
 
 
-
 
 
225
 
Total
 
$
2,012
 
$
1,058
 
$
693
 
$
732
 
$
33
 
$
4,528
 
 
 
 
December 31, 2015
 
 
 
Commercial
 
Consumer
 
Construction and Land
 
Commercial
and
 
Consumer
and
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
Other
 
Total
 
Performing loans
 
$
1,906
 
$
1,015
 
$
627
 
$
519
 
$
29
 
$
4,096
 
Impaired loans
 
 
-
 
 
-
 
 
-
 
 
258
 
 
-
 
 
258
 
Total
 
$
1,906
 
$
1,015
 
$
627
 
$
777
 
$
29
 
$
4,354
 
 
There was no allowance for PCI loans at December 31, 2015.
 
The following tables detail the changes in the allowance for loan losses for the three month period ending March 31, 2016 and year ending December 31, 2015, by loan classification (amounts in thousands):
 
 
 
March 31, 2016
 
 
 
Commercial
 
Consumer
Real
 
Construction
and Land
 
Commercial
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Beginning balance
 
$
1,906
 
$
1,015
 
$
627
 
$
777
 
$
29
 
$
4,354
 
Loans charged off
 
 
-
 
 
-
 
 
-
 
 
-
 
 
(33)
 
 
(33)
 
Recoveries of loans charged off
 
 
15
 
 
18
 
 
3
 
 
17
 
 
16
 
 
69
 
Provision (reallocation) charged to operating expense
 
 
91
 
 
25
 
 
63
 
 
(62)
 
 
21
 
 
138
 
Ending balance
 
$
2,012
 
$
1,058
 
$
693
 
$
732
 
$
33
 
$
4,528
 
 
 
 
December 31, 2015
 
 
 
 
 
 
Consumer
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
Real Estate
 
Real
Estate
 
and Land
Development
 
and
Industrial
 
Consumer
and Other
 
Total
 
Beginning balance
 
$
1,734
 
$
906
 
$
690
 
$
524
 
$
26
 
$
3,880
 
Loans charged off
 
 
(95)
 
 
(247)
 
 
(50)
 
 
-
 
 
(114)
 
 
(506)
 
Recoveries of charge-offs
 
 
-
 
 
-
 
 
26
 
 
19
 
 
12
 
 
57
 
Provision (reallocation) charged to operating expense
 
 
267
 
 
356
 
 
(39)
 
 
234
 
 
105
 
 
923
 
Ending balance
 
$
1,906
 
$
1,015
 
$
627
 
$
777
 
$
29
 
$
4,354
 
  
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.
 
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, 2016 and December 31, 2015 (amounts in thousands):
 
Non PCI Loans
 
 
 
March 31, 2016
 
 
 
 
 
 
 
 
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
and Land
 
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Pass
 
$
354,162
 
$
154,525
 
$
106,285
 
$
79,992
 
$
6,520
 
$
701,484
 
Watch
 
 
182
 
 
385
 
 
93
 
 
-
 
 
-
 
 
660
 
Special mention
 
 
387
 
 
-
 
 
528
 
 
13
 
 
-
 
 
928
 
Substandard
 
 
126
 
 
1,949
 
 
1,070
 
 
433
 
 
-
 
 
3,578
 
Doubtful
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
354,857
 
$
156,859
 
$
107,976
 
$
80,438
 
$
6,520
 
$
706,650
 
  
PCI Loans
 
 
 
March 31, 2016
 
 
 
 
 
 
 
 
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
and Land
 
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Pass
 
$
15,205
 
$
9,673
 
$
1,722
 
$
1,901
 
$
-
 
$
28,501
 
Watch
 
 
783
 
 
1,920
 
 
670
 
 
46
 
 
-
 
 
3,419
 
Special mention
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Substandard
 
 
1,118
 
 
966
 
 
220
 
 
66
 
 
-
 
 
2,370
 
Doubtful
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
17,106
 
$
12,559
 
$
2,612
 
$
2,013
 
$
-
 
$
34,290
 
Total loans
 
$
371,963
 
$
169,418
 
$
110,588
 
$
82,451
 
$
6,520
 
$
740,940
 
  
Non PCI Loans
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
and Land
 
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Pass
 
$
349,030
 
$
146,645
 
$
101,751
 
$
81,683
 
$
5,815
 
$
684,924
 
Watch
 
 
184
 
 
327
 
 
-
 
 
-
 
 
-
 
 
511
 
Special mention
 
 
387
 
 
-
 
 
-
 
 
32
 
 
-
 
 
419
 
Substandard
 
 
126
 
 
1,958
 
 
1,032
 
 
468
 
 
-
 
 
3,584
 
Doubtful
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
349,727
 
$
148,930
 
$
102,783
 
$
82,183
 
$
5,815
 
$
689,438
 
 
 
PCI Loans
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
and Land
 
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Pass
 
$
17,127
 
$
11,635
 
$
1,947
 
$
2,458
 
$
-
 
$
33,167
 
Watch
 
 
-
 
 
260
 
 
-
 
 
-
 
 
-
 
 
260
 
Special mention
 
 
1,975
 
 
-
 
 
526
 
 
221
 
 
-
 
 
2,722
 
Substandard
 
 
948
 
 
869
 
 
222
 
 
89
 
 
-
 
 
2,128
 
Doubtful
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
20,050
 
$
12,764
 
$
2,695
 
$
2,768
 
$
-
 
$
38,277
 
Total loans
 
$
369,777
 
$
161,694
 
$
105,478
 
$
84,951
 
$
5,815
 
$
727,715
 
 
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 and leases as of March 31, 2016 and December 31, 2015 (amounts in thousands):
 
 
 
March 31, 2016
 
 
 
30-89 Days
 
Past Due 90
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Past Due and
 
Days or More
 
 
 
 
Past Due
 
 
 
 
Current
 
Total
 
 
 
Accruing
 
and Accruing
 
Nonaccrual
 
and NonAccrual
 
PCI Loans
 
Loans
 
Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
148
 
$
-
 
$
387
 
$
535
 
$
17,106
 
$
354,322
 
$
371,963
 
Consumer real estate
 
 
118
 
 
107
 
 
1,345
 
 
1,570
 
 
12,559
 
 
155,289
 
 
169,418
 
Construction and land development
 
 
1,075
 
 
-
 
 
522
 
 
1,597
 
 
2,612
 
 
106,379
 
 
110,588
 
Commercial and industrial
 
 
30
 
 
44
 
 
385
 
 
459
 
 
2,013
 
 
79,979
 
 
82,451
 
Consumer and other
 
 
13
 
 
-
 
 
-
 
 
13
 
 
-
 
 
6,507
 
 
6,520
 
Total
 
$
1,384
 
$
151
 
$
2,639
 
$
4,174
 
$
34,290
 
$
702,476
 
$
740,940
 
 
 
 
December 31, 2015
 
 
 
30-89 Days
 
Past Due 90
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Past Due and
 
Days or More
 
 
 
 
Past Due
 
PCI
 
Current
 
Total
 
 
 
Accruing
 
and Accruing
 
Nonaccrual
 
and NonAccrual
 
Loans
 
Loans
 
Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
471
 
$
258
 
$
-
 
$
729
 
$
20,050
 
$
348,998
 
$
369,777
 
Consumer real estate
 
 
581
 
 
232
 
 
1,351
 
 
2,164
 
 
12,764
 
 
146,766
 
 
161,694
 
Construction and land development
 
 
137
 
 
-
 
 
483
 
 
620
 
 
2,695
 
 
102,163
 
 
105,478
 
Commercial and industrial
 
 
207
 
 
12
 
 
418
 
 
637
 
 
2,768
 
 
81,546
 
 
84,951
 
Consumer and other
 
 
12
 
 
-
 
 
-
 
 
12
 
 
-
 
 
5,803
 
 
5,815
 
Total
 
$
1,408
 
$
502
 
$
2,252
 
$
4,162
 
$
38,277
 
$
685,276
 
$
727,715
 
  
Impaired Loans:
 
The following is an analysis of the impaired loan portfolio, excluding PCI loans, detailing the related allowance recorded as of March 31, 2016 and December 31, 2015 (amounts in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
For the three months
 
 
 
At March 31, 2016
 
March 31, 2016
 
 
 
 
 
 
Unpaid
 
 
 
 
Average
 
Interest
 
 
 
Recorded
 
Principal
 
Related
 
Recorded
 
Income
 
 
 
Investment
 
Balance
 
Allowance
 
Investment
 
Recognized
 
Impaired loans without a valuation allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
1,951
 
$
1,951
 
$
-
 
$
1,952
 
$
41
 
Consumer real estate
 
 
3,684
 
 
4,396
 
 
-
 
 
3,663
 
 
26
 
Construction and land development
 
 
1,070
 
 
1,070
 
 
-
 
 
1,052
 
 
3
 
Commercial and industrial
 
 
48
 
 
48
 
 
-
 
 
49
 
 
1
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
 
 
 
-
 
 
 
 
6,753
 
 
7,465
 
 
-
 
 
6,716
 
 
71
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Consumer real estate
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Construction and land development
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Commercial and industrial
 
 
385
 
 
418
 
 
225
 
 
402
 
 
-
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
 
 
385
 
 
418
 
 
225
 
 
402
 
 
-
 
Total impaired loans
 
$
7,138
 
$
7,883
 
$
225
 
$
7,118
 
$
71
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the year ended
 
 
 
At December 31, 2015
 
December 31, 2015
 
 
 
 
 
 
Unpaid
 
 
 
 
Average
 
Interest
 
 
 
Recorded
 
Principal
 
Related
 
Recorded
 
Income
 
 
 
Investment
 
Balance
 
Allowance
 
Investment
 
Recognized
 
Impaired loans without a valuation allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
1,952
 
$
1,952
 
$
-
 
$
1,898
 
$
73
 
Consumer real estate
 
 
3,641
 
 
4,341
 
 
-
 
 
4,003
 
 
81
 
Construction and land development
 
 
1,033
 
 
1,033
 
 
-
 
 
1,044
 
 
26
 
Commercial and industrial
 
 
49
 
 
49
 
 
-
 
 
54
 
 
3
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
 
 
6,675
 
 
7,375
 
 
-
 
 
6,999
 
 
183
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Consumer real estate
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Construction and land development
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Commercial and industrial
 
 
418
 
 
418
 
 
258
 
 
448
 
 
-
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
 
 
418
 
 
418
 
 
258
 
 
448
 
 
-
 
Total impaired loans
 
$
7,093
 
$
7,793
 
$
258
 
$
7,447
 
$
183
 
 
Troubled Debt Restructurings:
 
At March 31, 2016 and December 31, 2015, 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, 2016 and December 31, 2015, management had  approximately, $5,843,000 and $4,990,000, respectively, in loans that met the criteria for restructured, which included approximately $2,166,000 and $1,297,000, 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.
 
The following table presents a summary of loans that were modified as troubled debt restructurings during the three month period ended March 31, 2016 (amounts in thousands): 
 
 
 
 
 
 
Pre-Modification
 
Post-Modification
 
 
 
 
 
 
Outstanding 
Recorded
 
Outstanding 
Recorded
 
March 31, 2016
 
Number of Contracts
 
Investment
 
Investment
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
1
 
$
483
 
$
483
 
Commercial and industrial
 
 
1
 
 
385
 
 
385
 
 
There were no loans modified as troubled debt restructurings during the year ended December 31, 2015.
 
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 March 31, 2016 is as follows:
 
Commercial real estate
 
$
20,053
 
Consumer real estate
 
 
16,487
 
Construction and land development
 
 
3,463
 
Commercial and industrial
 
 
3,085
 
Consumer and other
 
 
-
 
Total loans
 
$
43,088
 
Less remaining purchase discount
 
 
(8,798)
 
 
 
 
34,290
 
Less: Allowance for loan losses
 
 
(29)
 
 
 
 
 
 
Carrying amount, net of allowance
 
$
34,261
 
 
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, 2016 and 2015:
 
 
 
Three Months
Ended
March 31, 
2016
 
 
Three Months
Ended
March 31,
2015
 
 
 
 
 
 
 
 
 
Accretable yield, beginning of period
 
$
10,216
 
$
3,816
 
Additions
 
 
-
 
 
-
 
Accretion income
 
 
(628)
 
 
(393)
 
Reclassification to nonaccretable
 
 
(41)
 
 
-
 
Other changes, net
 
 
60
 
 
107
 
Accretable yield
 
$
9,606
 
$
3,530
 
 
The Company increased the allowance for loan losses on purchase credit impaired loans by $29 thousand during the three month period ended March 31, 2016 but had no increase during the period ended March 31, 2015.
v3.4.0.3
Commitments and Contingent Liabilities
3 Months Ended
Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
Note 6. 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, 2016 is as follows:
 
Commitments to extend credit
 
$
127.8 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, 2016 will not have a material effect on SmartFinancial’s consolidated financial statements.
v3.4.0.3
Fair Value Disclosures
3 Months Ended
Mar. 31, 2016
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
Note 7. 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.
 
Fair Value Hierarchy:
 
ASC Topic 820 also establishes a three-tier fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, as follows:
 
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access.
 
Level 2 - Significant other observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data.
 
Level 3 - Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
 
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: The carrying amounts of cash and cash equivalents approximate fair values based on the short-term nature of the assets. Cash and cash equivalents are classified as Level 1 of the fair value hierarchy.
 
Securities: Fair values are estimated 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. Securities classified as available-for-sale are reported at fair value utilizing Level 2 inputs.
 
The carrying value of restricted investments approximates fair value based on the redemption provisions of the restrictive entities..
 
Loans: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for fixed-rate loans are estimated using discounted cash flow analysis, using market interest rates for comparable loans. Fair value for nonperforming loans are estimated using discounted cashflow analyses of underlying collateral values where applicable.
 
Deposits: The fair value of deposits with no stated maturity, such as noninterest-bearing and interest-bearing demand deposits, savings deposits, and money market accounts, is equal to the amount payable on demand at the reporting date. The carrying amounts of variable-rate, fixed-term certificates of deposit approximate their fair values at the reporting date. 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.
  
Securities Sold Under Agreement to Repurchase: The carrying value of these liabilities approximates their fair value.
 
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.
 
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..
 
Assets and liabilities recorded at fair value on a recurring basis are as follows (in thousands):
 
 
 
 
 
Quoted Prices in
 
Significant
 
Significant
 
 
 
 
 
Active Markets
 
Other
 
Other
 
 
 
Balance as of
 
for Identical
 
Observable
 
Unobservable
 
 
 
March 31,
 
Assets
 
Inputs
 
Inputs
 
 
 
2016
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Debt securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprises (GSEs)
 
$
17,829
 
$
-
 
$
17,829
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
132,068
 
 
-
 
 
132,068
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
 
 
7,664
 
 
-
 
 
7,664
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total securities available-for-sale
 
$
157,561
 
$
-
 
$
157,561
 
$
-
 
 
 
 
 
 
Quoted Prices in
 
Significant
 
Significant
 
 
 
 
 
Active Markets
 
Other
 
Other
 
 
 
Balance as of
 
for Identical
 
Observable
 
Unobservable
 
 
 
December 31,
 
Assets
 
Inputs
 
Inputs
 
 
 
2015
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Debt securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprises (GSEs)
 
$
22,743
 
$
-
 
$
22,743
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
136,021
 
 
-
 
 
136,021
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
 
 
7,649
 
 
-
 
 
7,649
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total securities available-for-sale
 
$
166,413
 
$
-
 
$
166,413
 
$
-
 
 
SmartFinancial 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.
 
Certain assets and liabilities are measured at fair value on a nonrecurring basis, which means the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The tables below present information about assets and liabilities on the balance sheet at March 31, 2016 and December 31, 2015 which are measured at fair value on a nonrecurring basis.
 
 
 
 
 
Quoted Prices in
 
Significant
 
Significant
 
 
 
 
 
Active Markets
 
Other
 
Other
 
 
 
Balance as of
 
for Identical
 
Observable
 
Unobservable
 
 
 
March 31,
 
Assets
 
Inputs
 
Inputs
 
 
 
2016
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans
 
$
160
 
$
-
 
$
-
 
$
160
 
Foreclosed assets
 
 
5,133
 
 
-
 
 
-
 
 
5,133
 
 
 
 
 
 
Quoted Prices in
 
Significant
 
Significant
 
 
 
 
 
Active Markets
 
Other
 
Other
 
 
 
Balance as of
 
for Identical
 
Observable
 
Unobservable
 
 
 
December 31,
 
Assets
 
Inputs
 
Inputs
 
 
 
2015
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans
 
$
160
 
$
-
 
$
-
 
$
160
 
Foreclosed assets
 
 
5,358
 
 
-
 
 
-
 
 
5,358
 
 
For Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2016, the significant unobservable inputs used in the fair value measurements are presented below (in thousands).
 
 
 
Balance as of
March
31, 2016
 
Valuation
Technique
 
Significant Other
Unobservable Input
 
Weighted
Average of
Input
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans
 
$
160
 
Appraisal
 
Appraisal Discounts
 
 
6.0
%
Foreclosed assets
 
 
5,133
 
Appraisal
 
Appraisal Discounts
 
 
21.6
%
 
The carrying amount and estimated fair value of the Company’s financial instruments at March 31, 2016 and December 31, 2015 are as follows (in thousands):
 
 
 
March 31, 2016
 
December 31, 2015
 
 
 
Carrying
 
Estimated
 
Carrying
 
Estimated
 
 
 
Amount
 
Fair Value
 
Amount
 
Fair Value
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
68,933
 
$
68,933
 
$
79,965
 
$
79,965
 
Securities available for sale
 
 
157,561
 
 
157,561
 
 
166,413
 
 
166,413
 
Restricted investments
 
 
4,451
 
 
4,451
 
 
4,451
 
 
4,451
 
Loans, net
 
 
736,412
 
 
745,547
 
 
723,361
 
 
721,338
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
 
132,482
 
 
132,482
 
 
131,419
 
 
131,419
 
Interest-bearing demand deposits
 
 
161,454
 
 
161,454
 
 
149,424
 
 
149,424
 
Money Market and Savings deposits
 
 
241,500
 
 
241,500
 
 
236,901
 
 
236,901
 
Time deposits
 
 
323,676
 
 
325,540
 
 
340,739
 
 
342,873
 
Securities sold under agreements to repurchase
 
 
20,747
 
 
20,747
 
 
28,068
 
 
28,068
 
Federal Home Loan Bank advances and other borrowings
 
 
30,125
 
 
30,139
 
 
34,187
 
 
34,169
 
 
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 primarily measured based on the value of the collateral securing these loans. 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.
 
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 foreclosed assets. Subsequently, foreclosed assets are 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.
v3.4.0.3
Presentation of Financial Information (Policies)
3 Months Ended
Mar. 31, 2016
Accounting Policies [Abstract]  
Nature Of Business, Policy [Policy Text Block]
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 Policy [Policy Text Block]
Interim Financial Information (Unaudited)
 
The financial information in this report for March 31, 2016 and March 31, 2015 has not been audited. The information included herein should be read in conjunction with the Company’s 2015 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.
Use of Estimates, Policy [Policy Text Block]
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 appearing the in the 2015 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.
Reclassification, Policy [Policy Text Block]
Reclassifications:
 
Certain amounts in the prior consolidated financial statements have been reclassified to conform to the current period presentation. The reclassifications had no effect on net income, total assets or stockholders’ equity as previously reported.
New Accounting Pronouncements, Policy [Policy Text Block]
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, 2015 as filed with the Securities and Exchange Commission. Since December 31, 2015, there have been no significant changes in any accounting principles or practices, or in the method of applying any such principles or practices.
Earnings Per Share, Policy [Policy Text Block]
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
v3.4.0.3
Business Combination (Tables)
3 Months Ended
Mar. 31, 2016
Business Combinations [Abstract]  
Schedule of Business Acquisitions, by Acquisition [Table Text Block]
The following table details the preliminary estimated financial impact of the merger, including the calculation of the purchase price, the allocation of the purchase price to the fair values of net assets assumed, and goodwill recognized:
 
Calculation of Purchase Price
 
 
 
 
Shares of CSBQ common stock outstanding as of August 31, 2015
 
 
6,643,341
 
Market price of CSBQ common stock on August 31, 2015
 
$
3.85
 
Estimated fair value of CSBQ common stock (in thousands)
 
 
25,577
 
Estimated fair value of CSBQ stock options (in thousands)
 
 
2,858
 
Total consideration (in thousands)
 
$
28,435
 
 
Allocation of Purchase Price (in thousands)
 
 
 
 
Total consideration above
 
$
28,435
 
Fair value of assets acquired and liabilities assumed:
 
 
 
 
Cash and cash equivalents
 
 
33,502
 
Investment securities available for sale
 
 
74,254
 
Loans
 
 
314,827
 
Premises and equipment
 
 
9,019
 
Bank owned life insurance
 
 
1,278
 
Core deposit intangible
 
 
2,750
 
Other real estate owned
 
 
5,672
 
Prepaid and other assets
 
 
4,301
 
Deposits
 
 
(349,462)
 
Securities sold under agreements to repurchase
 
 
(17,622)
 
FHLB advances and other borrowings
 
 
(42,307)
 
Payables and other liabilities
 
 
(11,943)
 
Total fair value of net assets acquired
 
 
24,269
 
Goodwill
 
$
4,166
 
v3.4.0.3
Earnings per share (Tables)
3 Months Ended
Mar. 31, 2016
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
The following is a summary of the basic and diluted earnings per share for the three month periods ended March 31, 2016 and March 31, 2015.
 
 
 
Three Months Ended March 31,
 
 
 
2016
 
2015
 
Net income available to common shareholders
 
$
1,136,863
 
$
308,392
 
Weighted average common shares outstanding
 
 
5,807,488
 
 
2,965,783
 
Effect of dilutive stock options
 
 
300,599
 
 
327,393
 
Diluted shares
 
 
6,108,087
 
 
3,293,176
 
Basic earnings per common share
 
$
0.20
 
$
0.10
 
Diluted earnings per common share
 
$
0.19
 
$
0.09
 
v3.4.0.3
Securities (Tables)
3 Months Ended
Mar. 31, 2016
Investments, Debt and Equity Securities [Abstract]  
Schedule Of Available For Sale Securities and Held To Maturity Reconciliation [Table Text Block]
The amortized cost and fair value of securities available-for-sale at March 31, 2016 and December 31, 2015 are summarized as follows (in thousands):
 
 
 
March 31, 2016
 
 
 
 
 
 
Gross
 
Gross
 
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
 
 
 
Cost
 
Gains
 
Losses
 
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprises (GSEs)
 
$
17,732
 
$
97
 
$
-
 
$
17,829
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
 
 
7,582
 
 
83
 
 
(1)
 
 
7,664
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
131,905
 
 
593
 
 
(430)
 
 
132,068
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
157,219
 
$
773
 
$
(431)
 
$
157,561
 
 
 
 
December 31, 2015
 
 
 
 
 
 
Gross
 
Gross
 
 
 
 
 
 
Amortized
 
Unrealized
 
Unrealized
 
Fair
 
 
 
Cost
 
Gains
 
Losses
 
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprises (GSEs)
 
$
22,745
 
$
48
 
$
(50)
 
$
22,743
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
 
 
7,614
 
 
52
 
 
(17)
 
 
7,649
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
136,625
 
 
375
 
 
(979)
 
 
136,021
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
166,984
 
$
475
 
$
(1,046)
 
$
166,413
 
Investments Classified by Contractual Maturity Date [Table Text Block]
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
 
Fair
 
 
 
Cost
 
Value
 
Due in one year or less
 
$
1,949
 
$
1,952
 
Due from one year to five years
 
 
12,899
 
 
12,946
 
Due from five years to ten years
 
 
5,356
 
 
5,429
 
Due after ten years
 
 
5,110
 
 
5,166
 
 
 
 
25,314
 
 
25,493
 
Mortgage-backed securities
 
 
131,905
 
 
132,068
 
 
 
 
 
 
 
 
 
 
 
$
157,219
 
$
157,561
 
Schedule of Unrealized Loss on Investments [Table Text Block]
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, 2016 and December 31, 2015 (in thousands):
 
 
 
As of March 31, 2016
 
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
 
 
 
 
Gross
 
 
 
 
Gross
 
 
 
 
Gross
 
 
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
 
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
 
 
534
 
 
(1)
 
 
-
 
 
-
 
 
534
 
 
(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
34,957
 
 
(136)
 
 
12,127
 
 
(294)
 
 
47,084
 
 
(430)
 
 
 
$
35,491
 
$
(137)
 
$
12,127
 
$
(294)
 
$
47,618
 
$
(431)
 
 
 
 
As of December 31, 2015
 
 
 
Less than 12 Months
 
12 Months or Greater
 
Total
 
 
 
 
 
 
Gross
 
 
 
 
Gross
 
 
 
 
Gross
 
 
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
Fair
 
Unrealized
 
 
 
Value
 
Losses
 
Value
 
Losses
 
Value
 
Losses
 
U.S. Government- sponsored enterprises (GSEs)
 
$
8,464
 
$
(50)
 
$
-
 
$
-
 
$
8,464
 
$
(50)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
 
 
2,456
 
 
(17)
 
 
-
 
 
-
 
 
2,456
 
 
(17)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
72,641
 
 
(470)
 
 
16,325
 
 
(509)
 
 
88,966
 
 
(979)
 
 
 
$
83,561
 
$
(537)
 
$
16,325
 
$
(509)
 
$
99,886
 
$
(1,046)
 
v3.4.0.3
Loans and Allowance for Loan Losses (Tables)
3 Months Ended
Mar. 31, 2016
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
At March 31, 2016 and December 31, 2015, loans are summarized as follows (in thousands):
 
 
 
March 31, 2016
 
December 31, 2015
 
 
 
PCI Loans
 
All Other
Loans
 
Total
 
PCI
Loans
 
All Other
Loans
 
Total
 
Commercial real estate
 
$
17,106
 
$
354,857
 
$
371,963
 
$
20,050
 
$
349,727
 
$
369,777
 
Consumer real estate
 
 
12,559
 
 
156,859
 
 
169,418
 
 
12,764
 
 
148,930
 
 
161,694
 
Construction and land development
 
 
2,612
 
 
107,976
 
 
110,588
 
 
2,695
 
 
102,783
 
 
105,478
 
Commercial and industrial
 
 
2,013
 
 
80,438
 
 
82,451
 
 
2,768
 
 
82,183
 
 
84,951
 
Consumer and other
 
 
-
 
 
6,520
 
 
6,520
 
 
-
 
 
5,815
 
 
5,815
 
Total loans
 
 
34,290
 
 
706,650
 
 
740,940
 
 
38,277
 
 
689,438
 
 
727,715
 
Less: Allowance for loan losses
 
 
(29)
 
 
(4,499)
 
 
(4,528)
 
 
-
 
 
(4,354)
 
 
(4,354)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans, net
 
$
34,261
 
$
702,151
 
$
736,412
 
$
38,277
 
$
685,084
 
$
723,361
 
Schedule Of Impaired and Performing Loans Receivable [Table Text Block]
The composition of loans by loan classification for impaired and performing loan status at March 31, 2016 and December 31, 2015, is summarized in the tables below (amounts in thousands):
 
 
 
March 31, 2016
 
 
 
 
 
 
 
 
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
and Land
 
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Performing loans
 
$
352,906
 
$
153,175
 
$
106,906
 
$
80,005
 
$
6,520
 
$
699,512
 
Impaired loans
 
 
1,951
 
 
3,684
 
 
1,070
 
 
433
 
 
-
 
 
7,138
 
 
 
 
354,857
 
 
156,859
 
 
107,976
 
 
80,438
 
 
6,520
 
 
706,650
 
PCI loans
 
 
17,106
 
 
12,559
 
 
2,612
 
 
2,013
 
 
-
 
 
34,290
 
Total
 
$
371,963
 
$
169,418
 
$
110,588
 
$
82,451
 
$
6,520
 
$
740,940
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
and Land
 
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Performing loans
 
$
347,775
 
$
145,289
 
$
101,751
 
$
81,715
 
$
5,815
 
$
682,345
 
Impaired loans
 
 
1,952
 
 
3,641
 
 
1,032
 
 
468
 
 
-
 
 
7,093
 
 
 
 
349,727
 
 
148,930
 
 
102,783
 
 
82,183
 
 
5,815
 
 
689,438
 
PCI loans
 
 
20,050
 
 
12,764
 
 
2,695
 
 
2,768
 
 
-
 
 
38,277
 
Total loans
 
$
369,777
 
$
161,694
 
$
105,478
 
$
84,951
 
$
5,815
 
$
727,715
 
Schedule Of Allowance For Loan Losses For Impaired and Performing Loans Receivable [Table Text Block]
The following tables show the allowance for loan losses allocation by loan classification for impaired, PCI, and performing loans as of March 31, 2016 and December 31, 2015 (amounts in thousands):
 
 
 
March 31, 2016
 
 
 
Commercial
 
Consumer
 
Construction
and Land
 
Commercial
and
 
Consumer
and
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
Other
 
Total
 
Performing loans
 
$
1,992
 
$
1,049
 
$
693
 
$
507
 
$
33
 
$
4,274
 
PCI loans
 
 
20
 
 
9
 
 
-
 
 
-
 
 
-
 
 
29
 
Impaired loans
 
 
-
 
 
-
 
 
-
 
 
225
 
 
-
 
 
225
 
Total
 
$
2,012
 
$
1,058
 
$
693
 
$
732
 
$
33
 
$
4,528
 
 
 
 
December 31, 2015
 
 
 
Commercial
 
Consumer
 
Construction and Land
 
Commercial
and
 
Consumer
and
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
Other
 
Total
 
Performing loans
 
$
1,906
 
$
1,015
 
$
627
 
$
519
 
$
29
 
$
4,096
 
Impaired loans
 
 
-
 
 
-
 
 
-
 
 
258
 
 
-
 
 
258
 
Total
 
$
1,906
 
$
1,015
 
$
627
 
$
777
 
$
29
 
$
4,354
 
Schedule Of Financing Receivable Allowance For Credit Losses [Table Text Block]
The following tables detail the changes in the allowance for loan losses for the three month period ending March 31, 2016 and year ending December 31, 2015, by loan classification (amounts in thousands):
 
 
 
March 31, 2016
 
 
 
Commercial
 
Consumer
Real
 
Construction
and Land
 
Commercial
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Beginning balance
 
$
1,906
 
$
1,015
 
$
627
 
$
777
 
$
29
 
$
4,354
 
Loans charged off
 
 
-
 
 
-
 
 
-
 
 
-
 
 
(33)
 
 
(33)
 
Recoveries of loans charged off
 
 
15
 
 
18
 
 
3
 
 
17
 
 
16
 
 
69
 
Provision (reallocation) charged to operating expense
 
 
91
 
 
25
 
 
63
 
 
(62)
 
 
21
 
 
138
 
Ending balance
 
$
2,012
 
$
1,058
 
$
693
 
$
732
 
$
33
 
$
4,528
 
 
 
 
December 31, 2015
 
 
 
 
 
 
Consumer
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
Real Estate
 
Real
Estate
 
and Land
Development
 
and
Industrial
 
Consumer
and Other
 
Total
 
Beginning balance
 
$
1,734
 
$
906
 
$
690
 
$
524
 
$
26
 
$
3,880
 
Loans charged off
 
 
(95)
 
 
(247)
 
 
(50)
 
 
-
 
 
(114)
 
 
(506)
 
Recoveries of charge-offs
 
 
-
 
 
-
 
 
26
 
 
19
 
 
12
 
 
57
 
Provision (reallocation) charged to operating expense
 
 
267
 
 
356
 
 
(39)
 
 
234
 
 
105
 
 
923
 
Ending balance
 
$
1,906
 
$
1,015
 
$
627
 
$
777
 
$
29
 
$
4,354
 
Financing Receivable Credit Quality Indicators [Table Text Block]
The following tables outline the amount of each loan classification and the amount categorized into each risk rating as of March 31, 2016 and December 31, 2015 (amounts in thousands):
 
Non PCI Loans
 
 
 
March 31, 2016
 
 
 
 
 
 
 
 
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
and Land
 
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Pass
 
$
354,162
 
$
154,525
 
$
106,285
 
$
79,992
 
$
6,520
 
$
701,484
 
Watch
 
 
182
 
 
385
 
 
93
 
 
-
 
 
-
 
 
660
 
Special mention
 
 
387
 
 
-
 
 
528
 
 
13
 
 
-
 
 
928
 
Substandard
 
 
126
 
 
1,949
 
 
1,070
 
 
433
 
 
-
 
 
3,578
 
Doubtful
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
354,857
 
$
156,859
 
$
107,976
 
$
80,438
 
$
6,520
 
$
706,650
 
  
PCI Loans
 
 
 
March 31, 2016
 
 
 
 
 
 
 
 
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
and Land
 
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Pass
 
$
15,205
 
$
9,673
 
$
1,722
 
$
1,901
 
$
-
 
$
28,501
 
Watch
 
 
783
 
 
1,920
 
 
670
 
 
46
 
 
-
 
 
3,419
 
Special mention
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Substandard
 
 
1,118
 
 
966
 
 
220
 
 
66
 
 
-
 
 
2,370
 
Doubtful
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
17,106
 
$
12,559
 
$
2,612
 
$
2,013
 
$
-
 
$
34,290
 
Total loans
 
$
371,963
 
$
169,418
 
$
110,588
 
$
82,451
 
$
6,520
 
$
740,940
 
  
Non PCI Loans
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
and Land
 
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Pass
 
$
349,030
 
$
146,645
 
$
101,751
 
$
81,683
 
$
5,815
 
$
684,924
 
Watch
 
 
184
 
 
327
 
 
-
 
 
-
 
 
-
 
 
511
 
Special mention
 
 
387
 
 
-
 
 
-
 
 
32
 
 
-
 
 
419
 
Substandard
 
 
126
 
 
1,958
 
 
1,032
 
 
468
 
 
-
 
 
3,584
 
Doubtful
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
349,727
 
$
148,930
 
$
102,783
 
$
82,183
 
$
5,815
 
$
689,438
 
 
PCI Loans
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
Construction
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial
 
Consumer
 
and Land
 
and
 
Consumer
 
 
 
 
 
 
Real Estate
 
Real Estate
 
Development
 
Industrial
 
and Other
 
Total
 
Pass
 
$
17,127
 
$
11,635
 
$
1,947
 
$
2,458
 
$
-
 
$
33,167
 
Watch
 
 
-
 
 
260
 
 
-
 
 
-
 
 
-
 
 
260
 
Special mention
 
 
1,975
 
 
-
 
 
526
 
 
221
 
 
-
 
 
2,722
 
Substandard
 
 
948
 
 
869
 
 
222
 
 
89
 
 
-
 
 
2,128
 
Doubtful
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total
 
$
20,050
 
$
12,764
 
$
2,695
 
$
2,768
 
$
-
 
$
38,277
 
Total loans
 
$
369,777
 
$
161,694
 
$
105,478
 
$
84,951
 
$
5,815
 
$
727,715
 
Past Due Financing Receivables [Table Text Block]
The following tables present the aging of the recorded investment in loans and leases as of March 31, 2016 and December 31, 2015 (amounts in thousands):
 
 
 
March 31, 2016
 
 
 
30-89 Days
 
Past Due 90
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Past Due and
 
Days or More
 
 
 
 
Past Due
 
 
 
 
Current
 
Total
 
 
 
Accruing
 
and Accruing
 
Nonaccrual
 
and NonAccrual
 
PCI Loans
 
Loans
 
Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
148
 
$
-
 
$
387
 
$
535
 
$
17,106
 
$
354,322
 
$
371,963
 
Consumer real estate
 
 
118
 
 
107
 
 
1,345
 
 
1,570
 
 
12,559
 
 
155,289
 
 
169,418
 
Construction and land development
 
 
1,075
 
 
-
 
 
522
 
 
1,597
 
 
2,612
 
 
106,379
 
 
110,588
 
Commercial and industrial
 
 
30
 
 
44
 
 
385
 
 
459
 
 
2,013
 
 
79,979
 
 
82,451
 
Consumer and other
 
 
13
 
 
-
 
 
-
 
 
13
 
 
-
 
 
6,507
 
 
6,520
 
Total
 
$
1,384
 
$
151
 
$
2,639
 
$
4,174
 
$
34,290
 
$
702,476
 
$
740,940
 
 
 
 
December 31, 2015
 
 
 
30-89 Days
 
Past Due 90
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Past Due and
 
Days or More
 
 
 
 
Past Due
 
PCI
 
Current
 
Total
 
 
 
Accruing
 
and Accruing
 
Nonaccrual
 
and NonAccrual
 
Loans
 
Loans
 
Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
471
 
$
258
 
$
-
 
$
729
 
$
20,050
 
$
348,998
 
$
369,777
 
Consumer real estate
 
 
581
 
 
232
 
 
1,351
 
 
2,164
 
 
12,764
 
 
146,766
 
 
161,694
 
Construction and land development
 
 
137
 
 
-
 
 
483
 
 
620
 
 
2,695
 
 
102,163
 
 
105,478
 
Commercial and industrial
 
 
207
 
 
12
 
 
418
 
 
637
 
 
2,768
 
 
81,546
 
 
84,951
 
Consumer and other
 
 
12
 
 
-
 
 
-
 
 
12
 
 
-
 
 
5,803
 
 
5,815
 
Total
 
$
1,408
 
$
502
 
$
2,252
 
$
4,162
 
$
38,277
 
$
685,276
 
$
727,715
 
Impaired Financing Receivables [Table Text Block]
The following is an analysis of the impaired loan portfolio, excluding PCI loans, detailing the related allowance recorded as of March 31, 2016 and December 31, 2015 (amounts in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
For the three months
 
 
 
At March 31, 2016
 
March 31, 2016
 
 
 
 
 
 
Unpaid
 
 
 
 
Average
 
Interest
 
 
 
Recorded
 
Principal
 
Related
 
Recorded
 
Income
 
 
 
Investment
 
Balance
 
Allowance
 
Investment
 
Recognized
 
Impaired loans without a valuation allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
1,951
 
$
1,951
 
$
-
 
$
1,952
 
$
41
 
Consumer real estate
 
 
3,684
 
 
4,396
 
 
-
 
 
3,663
 
 
26
 
Construction and land development
 
 
1,070
 
 
1,070
 
 
-
 
 
1,052
 
 
3
 
Commercial and industrial
 
 
48
 
 
48
 
 
-
 
 
49
 
 
1
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
 
 
 
-
 
 
 
 
6,753
 
 
7,465
 
 
-
 
 
6,716
 
 
71
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Consumer real estate
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Construction and land development
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Commercial and industrial
 
 
385
 
 
418
 
 
225
 
 
402
 
 
-
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
 
 
385
 
 
418
 
 
225
 
 
402
 
 
-
 
Total impaired loans
 
$
7,138
 
$
7,883
 
$
225
 
$
7,118
 
$
71
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the year ended
 
 
 
At December 31, 2015
 
December 31, 2015
 
 
 
 
 
 
Unpaid
 
 
 
 
Average
 
Interest
 
 
 
Recorded
 
Principal
 
Related
 
Recorded
 
Income
 
 
 
Investment
 
Balance
 
Allowance
 
Investment
 
Recognized
 
Impaired loans without a valuation allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
$
1,952
 
$
1,952
 
$
-
 
$
1,898
 
$
73
 
Consumer real estate
 
 
3,641
 
 
4,341
 
 
-
 
 
4,003
 
 
81
 
Construction and land development
 
 
1,033
 
 
1,033
 
 
-
 
 
1,044
 
 
26
 
Commercial and industrial
 
 
49
 
 
49
 
 
-
 
 
54
 
 
3
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
 
 
6,675
 
 
7,375
 
 
-
 
 
6,999
 
 
183
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Consumer real estate
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Construction and land development
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Commercial and industrial
 
 
418
 
 
418
 
 
258
 
 
448
 
 
-
 
Consumer and other
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
 
 
418
 
 
418
 
 
258
 
 
448
 
 
-
 
Total impaired loans
 
$
7,093
 
$
7,793
 
$
258
 
$
7,447
 
$
183
Troubled Debt Restructurings on Financing Receivables [Table Text Block]
The following table presents a summary of loans that were modified as troubled debt restructurings during the three month period ended March 31, 2016 (amounts in thousands): 
 
 
 
 
 
 
Pre-Modification
 
Post-Modification
 
 
 
 
 
 
Outstanding 
Recorded
 
Outstanding 
Recorded
 
March 31, 2016
 
Number of Contracts
 
Investment
 
Investment
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development
 
 
1
 
$
483
 
$
483
 
Commercial and industrial
 
 
1
 
 
385
 
 
385
 
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period Carrying Amount Of Loans [Table Text Block]
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 March 31, 2016 is as follows:
 
Commercial real estate
 
$
20,053
 
Consumer real estate
 
 
16,487
 
Construction and land development
 
 
3,463
 
Commercial and industrial
 
 
3,085
 
Consumer and other
 
 
-
 
Total loans
 
$
43,088
 
Less remaining purchase discount
 
 
(8,798)
 
 
 
 
34,290
 
Less: Allowance for loan losses
 
 
(29)
 
 
 
 
 
 
Carrying amount, net of allowance
 
$
34,261
 
Schedule Of Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield Movement [Table Text Block]
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, 2016 and 2015:
 
 
 
Three Months
Ended
March 31, 
2016
 
 
Three Months
Ended
March 31,
2015
 
 
 
 
 
 
 
 
 
Accretable yield, beginning of period
 
$
10,216
 
$
3,816
 
Additions
 
 
-
 
 
-
 
Accretion income
 
 
(628)
 
 
(393)
 
Reclassification to nonaccretable
 
 
(41)
 
 
-
 
Other changes, net
 
 
60
 
 
107
 
Accretable yield
 
$
9,606
 
$
3,530
 
v3.4.0.3
Commitments and Contingent Liabilities (Tables)
3 Months Ended
Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]  
Other Commitments [Table Text Block]
A summary of the Bank’s total contractual amount for all off-balance sheet commitments at March 31, 2016 is as follows:
 
Commitments to extend credit
 
$
127.8 million
 
Standby letters of credit
 
$
2.9 million
 
v3.4.0.3
Fair Value Disclosures (Tables)
3 Months Ended
Mar. 31, 2016
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
Assets and liabilities recorded at fair value on a recurring basis are as follows (in thousands):
 
 
 
 
 
Quoted Prices in
 
Significant
 
Significant
 
 
 
 
 
Active Markets
 
Other
 
Other
 
 
 
Balance as of
 
for Identical
 
Observable
 
Unobservable
 
 
 
March 31,
 
Assets
 
Inputs
 
Inputs
 
 
 
2016
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Debt securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprises (GSEs)
 
$
17,829
 
$
-
 
$
17,829
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
132,068
 
 
-
 
 
132,068
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
 
 
7,664
 
 
-
 
 
7,664
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total securities available-for-sale
 
$
157,561
 
$
-
 
$
157,561
 
$
-
 
 
 
 
 
 
Quoted Prices in
 
Significant
 
Significant
 
 
 
 
 
Active Markets
 
Other
 
Other
 
 
 
Balance as of
 
for Identical
 
Observable
 
Unobservable
 
 
 
December 31,
 
Assets
 
Inputs
 
Inputs
 
 
 
2015
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Debt securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government-sponsored enterprises (GSEs)
 
$
22,743
 
$
-
 
$
22,743
 
$
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
136,021
 
 
-
 
 
136,021
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal securities
 
 
7,649
 
 
-
 
 
7,649
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total securities available-for-sale
 
$
166,413
 
$
-
 
$
166,413
 
$
-
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block]
The tables below present information about assets and liabilities on the balance sheet at March 31, 2016 and December 31, 2015 which are measured at fair value on a nonrecurring basis.
 
 
 
 
 
Quoted Prices in
 
Significant
 
Significant
 
 
 
 
 
Active Markets
 
Other
 
Other
 
 
 
Balance as of
 
for Identical
 
Observable
 
Unobservable
 
 
 
March 31,
 
Assets
 
Inputs
 
Inputs
 
 
 
2016
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans
 
$
160
 
$
-
 
$
-
 
$
160
 
Foreclosed assets
 
 
5,133
 
 
-
 
 
-
 
 
5,133
 
 
 
 
 
 
Quoted Prices in
 
Significant
 
Significant
 
 
 
 
 
Active Markets
 
Other
 
Other
 
 
 
Balance as of
 
for Identical
 
Observable
 
Unobservable
 
 
 
December 31,
 
Assets
 
Inputs
 
Inputs
 
 
 
2015
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans
 
$
160
 
$
-
 
$
-
 
$
160
 
Foreclosed assets
 
 
5,358
 
 
-
 
 
-
 
 
5,358
 
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Table Text Block]
For Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2016, the significant unobservable inputs used in the fair value measurements are presented below (in thousands).
 
 
 
Balance as of
March
31, 2016
 
Valuation
Technique
 
Significant Other
Unobservable Input
 
Weighted
Average of
Input
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans
 
$
160
 
Appraisal
 
Appraisal Discounts
 
 
6.0
%
Foreclosed assets
 
 
5,133
 
Appraisal
 
Appraisal Discounts
 
 
21.6
%
Fair Value, by Balance Sheet Grouping [Table Text Block]
The carrying amount and estimated fair value of the Company’s financial instruments at March 31, 2016 and December 31, 2015 are as follows (in thousands):
 
 
 
March 31, 2016
 
December 31, 2015
 
 
 
Carrying
 
Estimated
 
Carrying
 
Estimated
 
 
 
Amount
 
Fair Value
 
Amount
 
Fair Value
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
68,933
 
$
68,933
 
$
79,965
 
$
79,965
 
Securities available for sale
 
 
157,561
 
 
157,561
 
 
166,413
 
 
166,413
 
Restricted investments
 
 
4,451
 
 
4,451
 
 
4,451
 
 
4,451
 
Loans, net
 
 
736,412
 
 
745,547
 
 
723,361
 
 
721,338
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
 
 
132,482
 
 
132,482
 
 
131,419
 
 
131,419
 
Interest-bearing demand deposits
 
 
161,454
 
 
161,454
 
 
149,424
 
 
149,424
 
Money Market and Savings deposits
 
 
241,500
 
 
241,500
 
 
236,901
 
 
236,901
 
Time deposits
 
 
323,676
 
 
325,540
 
 
340,739
 
 
342,873
 
Securities sold under agreements to repurchase
 
 
20,747
 
 
20,747
 
 
28,068
 
 
28,068
 
Federal Home Loan Bank advances and other borrowings
 
 
30,125
 
 
30,139
 
 
34,187
 
 
34,169
 
v3.4.0.3
Business Combination (Details) - USD ($)
3 Months Ended
Mar. 31, 2016
Aug. 31, 2015
Business Acquisition [Line Items]    
Shares of CSBQ common stock outstanding as of August 31, 2015   $ 6,643,341
Market price of CSBQ common stock on August 31, 2015   $ 3.85
Estimated fair value of CSBQ common stock $ 25,577,000  
Estimated fair value of CSBQ stock options 2,858,000  
Total consideration 28,435,000  
Fair value of assets acquired and liabilities assumed:    
Cash and cash equivalents 33,502,000  
Investment securities available for sale 74,254,000  
Loans 314,827,000  
Premises and equipment 9,019,000  
Bank owned life insurance 1,278,000  
Core deposit intangible 2,750,000  
Other real estate owned 5,672,000  
Prepaid and other assets 4,301,000  
Deposits (349,462,000)  
Securities sold under agreements to repurchase (17,622,000)  
FHLB advances and other borrowings (42,307,000)  
Payables and other liabilities (11,943,000)  
Total fair value of net assets acquired 24,269,000  
Goodwill $ 4,166,000  
v3.4.0.3
Earnings per share (Details) - USD ($)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]    
Net income available to common shareholders $ 1,136,863 $ 308,392
Weighted average common shares outstanding 5,807,488 2,965,783
Effect of dilutive stock options 300,599 327,393
Diluted shares 6,108,087 3,293,176
Basic earnings per common share $ 0.2 $ 0.1
Diluted earnings per common share $ 0.19 $ 0.09
v3.4.0.3
Earnings per share (Details Textual) - shares
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 18,100 0
v3.4.0.3
Securities (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Debt securities available-for-sale:    
Debt securities available for sale, Amortized Cost $ 157,219,000 $ 166,984,000
Debt securities available for sale Gross Unrealized Gains 773,000 475,000
Debt securities available for sale Gross Unrealized Losses (431,000) (1,046,000)
Debt securities available for sale Fair Value 157,560,615 166,413,218
US Government-sponsored Enterprises Debt Securities [Member]    
Debt securities available-for-sale:    
Debt securities available for sale, Amortized Cost 17,732,000 22,745,000
Debt securities available for sale Gross Unrealized Gains 97,000 48,000
Debt securities available for sale Gross Unrealized Losses 0 (50,000)
Debt securities available for sale Fair Value 17,829,000 22,743,000
Muncipal Securities [Member]    
Debt securities available-for-sale:    
Debt securities available for sale, Amortized Cost 7,582,000 7,614,000
Debt securities available for sale Gross Unrealized Gains 83,000 52,000
Debt securities available for sale Gross Unrealized Losses (1,000) (17,000)
Debt securities available for sale Fair Value 7,664,000 7,649,000
Residential Mortgage Backed Securities [Member]    
Debt securities available-for-sale:    
Debt securities available for sale, Amortized Cost 131,905,000 136,625,000
Debt securities available for sale Gross Unrealized Gains 593,000 375,000
Debt securities available for sale Gross Unrealized Losses (430,000) (979,000)
Debt securities available for sale Fair Value $ 132,068,000 $ 136,021,000
v3.4.0.3
Securities (Details 1) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]    
Securities Available for Sale, Due in one year or less, Amortized Cost $ 1,949,000  
Securities Available for Sale, Due from one year to five years, Amortized Cost 12,899,000  
Securities Available for Sale, Due from five years to ten years, Amortized Cost 5,356,000  
Securities Available for Sale, Due after ten years, Amortized Cost 5,110,000  
Securities Available for Sale, Debt Securities, Amortized Cost 25,314,000  
Securities Available for Sale, Mortgage-backed securities, Amortized Cost 131,905,000  
Securities Available for Sale, Amortized Cost 157,219,000 $ 166,984,000
Securities Available for Sale, Due in one year or less, Fair Value 1,952,000  
Securities Available for Sale, Due from one year to five years, Fair Value 12,946,000  
Securities Available for Sale, Due from five years to ten years, Fair Value 5,429,000  
Securities Available for Sale, Due after ten years, Fair Value 5,166,000  
Securities Available for Sale, Debt Securities, Fair Value 25,493,000  
Securities Available for Sale, Mortgage-backed securities, Fair Value 132,068,000  
Securities Available for Sale, Fair Value $ 157,560,615 $ 166,413,218
v3.4.0.3
Securities (Details 2) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Debt securities available-for-sale:    
Less than 12 Months, Fair Value $ 35,491 $ 83,561
Less than 12 Months, Gross Unrealized Losses (137) (537)
12 Months or Greater, Fair Value 12,127 16,325
12 Months or Greater, Gross Unrealized Losses (294) (509)
Total, Fair Value 47,618 99,886
Total, Gross Unrealized Losses (431) (1,046)
US Government-sponsored Enterprises Debt Securities [Member]    
Debt securities available-for-sale:    
Less than 12 Months, Fair Value   8,464
Less than 12 Months, Gross Unrealized Losses   (50)
12 Months or Greater, Fair Value   0
12 Months or Greater, Gross Unrealized Losses   0
Total, Fair Value   8,464
Total, Gross Unrealized Losses   (50)
Muncipal Securities [Member]    
Debt securities available-for-sale:    
Less than 12 Months, Fair Value 534 2,456
Less than 12 Months, Gross Unrealized Losses (1) (17)
12 Months or Greater, Fair Value 0 0
12 Months or Greater, Gross Unrealized Losses 0 0
Total, Fair Value 534 2,456
Total, Gross Unrealized Losses (1) (17)
Residential Mortgage Backed Securities [Member]    
Debt securities available-for-sale:    
Less than 12 Months, Fair Value 34,957 72,641
Less than 12 Months, Gross Unrealized Losses (136) (470)
12 Months or Greater, Fair Value 12,127 16,325
12 Months or Greater, Gross Unrealized Losses (294) (509)
Total, Fair Value 47,084 88,966
Total, Gross Unrealized Losses $ (430) $ (979)
v3.4.0.3
Securities (Details Textual) - USD ($)
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Schedule of Available-for-sale Securities [Line Items]    
Available-for-sale Securities Pledged as Collateral $ 105,900,000  
Proceeds from Sale of Available-for-sale Securities 5,072,500  
Gains from sale of securities 83,263 $ 0
Available-for-sale Securities, Gross Realized Losses $ 0  
v3.4.0.3
Loans and Allowance for Loan Losses (Details) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans $ 740,940,000 $ 727,715,000  
Less: Allowance for loan losses (4,528,000) (4,354,000) $ (3,880,000)
Loans, net 736,412,390 723,360,786  
PCI Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 34,290,000 38,277,000  
Less: Allowance for loan losses (29,000) 0  
Loans, net 34,261,000 38,277,000  
All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 706,650,000 689,438,000  
Less: Allowance for loan losses (4,499,000) (4,354,000)  
Loans, net 702,151,000 685,084,000  
Commercial Real Estate Mortgage [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 371,963,000 369,777,000  
Less: Allowance for loan losses (2,012,000) (1,906,000) (1,734,000)
Commercial Real Estate Mortgage [Member] | PCI Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 17,106,000 20,050,000  
Commercial Real Estate Mortgage [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 354,857,000 349,727,000  
Consumer Real Estate Mortgage [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 169,418,000 161,694,000  
Less: Allowance for loan losses (1,058,000) (1,015,000) (906,000)
Consumer Real Estate Mortgage [Member] | PCI Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 12,559,000 12,764,000  
Consumer Real Estate Mortgage [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 156,859,000 148,930,000  
Construction and Land Development [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 110,588,000 105,478,000  
Less: Allowance for loan losses (693,000) (627,000) (690,000)
Construction and Land Development [Member] | PCI Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 2,612,000 2,695,000  
Construction and Land Development [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 107,976,000 102,783,000  
Commercial and Industrial Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 82,451,000 84,951,000  
Less: Allowance for loan losses (732,000) (777,000) (524,000)
Commercial and Industrial Loans [Member] | PCI Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 2,013,000 2,768,000  
Commercial and Industrial Loans [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 80,438,000 82,183,000  
Consumer and Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 6,520,000 5,815,000  
Less: Allowance for loan losses (33,000) (29,000) $ (26,000)
Consumer and Other Loans [Member] | PCI Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans 0 0  
Consumer and Other Loans [Member] | All Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total loans $ 6,520,000 $ 5,815,000  
v3.4.0.3
Loans and Allowance for Loan Losses (Details 1) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount $ 740,940 $ 727,715
Commercial Real Estate Mortgage [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 371,963 369,777
Consumer Real Estate Mortgage [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 169,418 161,694
Construction and Land Development [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 110,588 105,478
Commercial and Industrial Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 82,451 84,951
Consumer and Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 6,520 5,815
Performing Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 699,512 682,345
Performing Loans [Member] | Commercial Real Estate Mortgage [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 352,906 347,775
Performing Loans [Member] | Consumer Real Estate Mortgage [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 153,175 145,289
Performing Loans [Member] | Construction and Land Development [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 106,906 101,751
Performing Loans [Member] | Commercial and Industrial Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 80,005 81,715
Performing Loans [Member] | Consumer and Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 6,520 5,815
Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 7,138 7,093
Impaired Loans [Member] | Commercial Real Estate Mortgage [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 1,951 1,952
Impaired Loans [Member] | Consumer Real Estate Mortgage [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 3,684 3,641
Impaired Loans [Member] | Construction and Land Development [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 1,070 1,032
Impaired Loans [Member] | Commercial and Industrial Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 433 468
Impaired Loans [Member] | Consumer and Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Total Performing And Impaired Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 706,650 689,438
Total Performing And Impaired Loans [Member] | Commercial Real Estate Mortgage [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 354,857 349,727
Total Performing And Impaired Loans [Member] | Consumer Real Estate Mortgage [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 156,859 148,930
Total Performing And Impaired Loans [Member] | Construction and Land Development [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 107,976 102,783
Total Performing And Impaired Loans [Member] | Commercial and Industrial Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 80,438 82,183
Total Performing And Impaired Loans [Member] | Consumer and Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 6,520 5,815
PCI Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 34,290 38,277
PCI Loans [Member] | Commercial Real Estate Mortgage [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 17,106 20,050
PCI Loans [Member] | Consumer Real Estate Mortgage [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 12,559 12,764
PCI Loans [Member] | Construction and Land Development [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 2,612 2,695
PCI Loans [Member] | Commercial and Industrial Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 2,013 2,768
PCI Loans [Member] | Consumer and Other Loans [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount $ 0 $ 0
v3.4.0.3
Loans and Allowance for Loan Losses (Details 2) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance $ 4,528 $ 4,354 $ 3,880
Commercial Real Estate Mortgage [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 2,012 1,906 1,734
Consumer Real Estate Mortgage [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 1,058 1,015 906
Construction and Land Development [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 693 627 690
Commercial and Industrial Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 732 777 524
Consumer and Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 33 29 $ 26
Performing Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 4,274 4,096  
Performing Loans [Member] | Commercial Real Estate Mortgage [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 1,992 1,906  
Performing Loans [Member] | Consumer Real Estate Mortgage [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 1,049 1,015  
Performing Loans [Member] | Construction and Land Development [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 693 627  
Performing Loans [Member] | Commercial and Industrial Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 507 519  
Performing Loans [Member] | Consumer and Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 33 29  
Impaired Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 225 258  
Impaired Loans [Member] | Commercial Real Estate Mortgage [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 0 0  
Impaired Loans [Member] | Consumer Real Estate Mortgage [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 0 0  
Impaired Loans [Member] | Construction and Land Development [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 0 0  
Impaired Loans [Member] | Commercial and Industrial Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 225 258  
Impaired Loans [Member] | Consumer and Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 0 $ 0  
PCI Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 29    
PCI Loans [Member] | Commercial Real Estate Mortgage [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance 20    
PCI Loans [Member] | Consumer Real Estate Mortgage [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Loans and Leases Receivable, Allowance $ 9    
v3.4.0.3
Loans and Allowance for Loan Losses (Details 3) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Beginning balance $ 4,354,000 $ 3,880,000 $ 3,880,000
Loans charged off (33,000)   (506,000)
Recoveries of loans charged off 69,000   57,000
Provision (reallocation) charged to operating expense 137,557 283,942 923,000
Ending balance 4,528,000   4,354,000
Commercial Real Estate Mortgage [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Beginning balance 1,906,000 1,734,000 1,734,000
Loans charged off 0   (95,000)
Recoveries of loans charged off 15,000   0
Provision (reallocation) charged to operating expense 91,000   267,000
Ending balance 2,012,000   1,906,000
Consumer Real Estate Mortgage [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Beginning balance 1,015,000 906,000 906,000
Loans charged off 0   (247,000)
Recoveries of loans charged off 18,000   0
Provision (reallocation) charged to operating expense 25,000   356,000
Ending balance 1,058,000   1,015,000
Construction and Land Development [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Beginning balance 627,000 690,000 690,000
Loans charged off 0   (50,000)
Recoveries of loans charged off 3,000   26,000
Provision (reallocation) charged to operating expense 63,000   (39,000)
Ending balance 693,000   627,000
Commercial and Industrial Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Beginning balance 777,000 524,000 524,000
Loans charged off 0   0
Recoveries of loans charged off 17,000   19,000
Provision (reallocation) charged to operating expense (62,000)   234,000
Ending balance 732,000   777,000
Consumer and Other Loans [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Beginning balance 29,000 $ 26,000 26,000
Loans charged off (33,000)   (114,000)
Recoveries of loans charged off 16,000   12,000
Provision (reallocation) charged to operating expense 21,000   105,000
Ending balance $ 33,000   $ 29,000
v3.4.0.3
Loans and Allowance for Loan Losses (Details 4) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount $ 740,940 $ 727,715
Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 706,650 689,438
PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 34,290 38,277
Commercial Real Estate Mortgage [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 371,963 369,777
Commercial Real Estate Mortgage [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 354,857 349,727
Commercial Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 17,106 20,050
Consumer Real Estate Mortgage [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 169,418 161,694
Consumer Real Estate Mortgage [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 156,859 148,930
Consumer Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 12,559 12,764
Construction and Land Development [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 110,588 105,478
Construction and Land Development [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 107,976 102,783
Construction and Land Development [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 2,612 2,695
Commercial and Industrial Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 82,451 84,951
Commercial and Industrial Loans [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 80,438 82,183
Commercial and Industrial Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 2,013 2,768
Consumer and Other Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 6,520 5,815
Consumer and Other Loans [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 6,520 5,815
Consumer and Other Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Pass [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 701,484 684,924
Pass [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 28,501 33,167
Pass [Member] | Commercial Real Estate Mortgage [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 354,162 349,030
Pass [Member] | Commercial Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 15,205 17,127
Pass [Member] | Consumer Real Estate Mortgage [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 154,525 146,645
Pass [Member] | Consumer Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 9,673 11,635
Pass [Member] | Construction and Land Development [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 106,285 101,751
Pass [Member] | Construction and Land Development [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 1,722 1,947
Pass [Member] | Commercial and Industrial Loans [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 79,992 81,683
Pass [Member] | Commercial and Industrial Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 1,901 2,458
Pass [Member] | Consumer and Other Loans [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 6,520 5,815
Pass [Member] | Consumer and Other Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Watch [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 660 511
Watch [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 3,419 260
Watch [Member] | Commercial Real Estate Mortgage [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 182 184
Watch [Member] | Commercial Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 783 0
Watch [Member] | Consumer Real Estate Mortgage [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 385 327
Watch [Member] | Consumer Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 1,920 260
Watch [Member] | Construction and Land Development [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 93 0
Watch [Member] | Construction and Land Development [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 670 0
Watch [Member] | Commercial and Industrial Loans [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Watch [Member] | Commercial and Industrial Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 46 0
Watch [Member] | Consumer and Other Loans [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Watch [Member] | Consumer and Other Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Special Mention [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 928 419
Special Mention [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 2,722
Special Mention [Member] | Commercial Real Estate Mortgage [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 387 387
Special Mention [Member] | Commercial Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 1,975
Special Mention [Member] | Consumer Real Estate Mortgage [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Special Mention [Member] | Consumer Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Special Mention [Member] | Construction and Land Development [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 528 0
Special Mention [Member] | Construction and Land Development [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 526
Special Mention [Member] | Commercial and Industrial Loans [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 13 32
Special Mention [Member] | Commercial and Industrial Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 221
Special Mention [Member] | Consumer and Other Loans [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Special Mention [Member] | Consumer and Other Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Substandard [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 3,578 3,584
Substandard [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 2,370 2,128
Substandard [Member] | Commercial Real Estate Mortgage [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 126 126
Substandard [Member] | Commercial Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 1,118 948
Substandard [Member] | Consumer Real Estate Mortgage [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 1,949 1,958
Substandard [Member] | Consumer Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 966 869
Substandard [Member] | Construction and Land Development [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 1,070 1,032
Substandard [Member] | Construction and Land Development [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 220 222
Substandard [Member] | Commercial and Industrial Loans [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 433 468
Substandard [Member] | Commercial and Industrial Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 66 89
Substandard [Member] | Consumer and Other Loans [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Substandard [Member] | Consumer and Other Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Doubtful [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Doubtful [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Doubtful [Member] | Commercial Real Estate Mortgage [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Doubtful [Member] | Commercial Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Doubtful [Member] | Consumer Real Estate Mortgage [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Doubtful [Member] | Consumer Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Doubtful [Member] | Construction and Land Development [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Doubtful [Member] | Construction and Land Development [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Doubtful [Member] | Commercial and Industrial Loans [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Doubtful [Member] | Commercial and Industrial Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Doubtful [Member] | Consumer and Other Loans [Member] | Non PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Doubtful [Member] | Consumer and Other Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 0 0
Total Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 740,940 727,715
Total Loans [Member] | Commercial Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 371,963 369,777
Total Loans [Member] | Consumer Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 169,418 161,694
Total Loans [Member] | Construction and Land Development [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 110,588 105,478
Total Loans [Member] | Commercial and Industrial Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount 82,451 84,951
Total Loans [Member] | Consumer and Other Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans and Leases Receivable, Gross, Carrying Amount $ 6,520 $ 5,815
v3.4.0.3
Loans and Allowance for Loan Losses (Details 5) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-89 Days Past Due and Accruing $ 1,384 $ 1,408
Past Due 90 Days or More and Accruing 151 502
Nonaccrual 2,639 2,252
Total past Due and NonAccrual 4,174 4,162
PCI Loans 34,290 38,277
Current Loans 702,476 685,276
Total Loans 740,940 727,715
PCI Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Loans 34,290 38,277
Commercial Real Estate Mortgage [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-89 Days Past Due and Accruing 148 471
Past Due 90 Days or More and Accruing 0 258
Nonaccrual 387 0
Total past Due and NonAccrual 535 729
PCI Loans 17,106 20,050
Current Loans 354,322 348,998
Total Loans 371,963 369,777
Commercial Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Loans 17,106 20,050
Consumer Real Estate Mortgage [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-89 Days Past Due and Accruing 118 581
Past Due 90 Days or More and Accruing 107 232
Nonaccrual 1,345 1,351
Total past Due and NonAccrual 1,570 2,164
PCI Loans 12,559 12,764
Current Loans 155,289 146,766
Total Loans 169,418 161,694
Consumer Real Estate Mortgage [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Loans 12,559 12,764
Construction and Land Development [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-89 Days Past Due and Accruing 1,075 137
Past Due 90 Days or More and Accruing 0 0
Nonaccrual 522 483
Total past Due and NonAccrual 1,597 620
PCI Loans 2,612 2,695
Current Loans 106,379 102,163
Total Loans 110,588 105,478
Construction and Land Development [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
PCI Loans 0  
Total Loans 2,612 2,695
Commercial and Industrial Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-89 Days Past Due and Accruing 30 207
Past Due 90 Days or More and Accruing 44 12
Nonaccrual 385 418
Total past Due and NonAccrual 459 637
PCI Loans 2,013 2,768
Current Loans 79,979 81,546
Total Loans 82,451 84,951
Commercial and Industrial Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
PCI Loans 0  
Total Loans 2,013 2,768
Consumer and Other Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
30-89 Days Past Due and Accruing 13 12
Past Due 90 Days or More and Accruing 0 0
Nonaccrual 0 0
Total past Due and NonAccrual 13 12
PCI Loans 0 0
Current Loans 6,507 5,803
Total Loans 6,520 5,815
Consumer and Other Loans [Member] | PCI Loans [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
PCI Loans 0  
Total Loans $ 0 $ 0
v3.4.0.3
Loans and Allowance for Loan Losses (Details 6) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Financing Receivable, Impaired [Line Items]    
Impaired loans without a valuation allowance, Recorded Investment $ 6,753 $ 6,675
Impaired loans without a valuation allowance, Unpaid Principal Balance 7,465 7,375
Impaired loans without a valuation allowance, Average Recorded Investment 6,716 6,999
Impaired loans without a valuation allowance, Interest Income Recognized 71 183
Impaired loans with a valuation allowance, Recorded Investment 385 418
Impaired loans with a valuation allowance, Unpaid Principal Balance 418 418
Impaired loans with a valuation allowance, Related Allowance 225 258
Impaired loans with a valuation allowance, Average Recorded Investment 402 448
Impaired loans with a valuation allowance, Interest Income Recognized 0 0
Total impaired loans, Recorded Investment 7,138 7,093
Total impaired loans, Unpaid Principal Balance 7,883 7,793
Total impaired loans, Related Allowance 225 258
Total impaired loans, Average Recorded Investment 7,118 7,447
Total impaired loans, Interest Income Recognized 71 183
Commercial Real Estate Mortgage [Member]    
Financing Receivable, Impaired [Line Items]    
Impaired loans without a valuation allowance, Recorded Investment 1,951 1,952
Impaired loans without a valuation allowance, Unpaid Principal Balance 1,951 1,952
Impaired loans without a valuation allowance, Average Recorded Investment 1,952 1,898
Impaired loans without a valuation allowance, Interest Income Recognized 41 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 Mortgage [Member]    
Financing Receivable, Impaired [Line Items]    
Impaired loans without a valuation allowance, Recorded Investment 3,684 3,641
Impaired loans without a valuation allowance, Unpaid Principal Balance 4,396 4,341
Impaired loans without a valuation allowance, Average Recorded Investment 3,663 4,003
Impaired loans without a valuation allowance, Interest Income Recognized 26 81
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
Construction and Land Development [Member]    
Financing Receivable, Impaired [Line Items]    
Impaired loans without a valuation allowance, Recorded Investment 1,070 1,033
Impaired loans without a valuation allowance, Unpaid Principal Balance 1,070 1,033
Impaired loans without a valuation allowance, Average Recorded Investment 1,052 1,044
Impaired loans without a valuation allowance, Interest Income Recognized 3 26
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 Loans [Member]    
Financing Receivable, Impaired [Line Items]    
Impaired loans without a valuation allowance, Recorded Investment 48 49
Impaired loans without a valuation allowance, Unpaid Principal Balance 48 49
Impaired loans without a valuation allowance, Average Recorded Investment 49 54
Impaired loans without a valuation allowance, Interest Income Recognized 1 3
Impaired loans with a valuation allowance, Recorded Investment 385 418
Impaired loans with a valuation allowance, Unpaid Principal Balance 418 418
Impaired loans with a valuation allowance, Related Allowance 225 258
Impaired loans with a valuation allowance, Average Recorded Investment 402 448
Impaired loans with a valuation allowance, Interest Income Recognized 0 0
Consumer and Other Loans [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
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
v3.4.0.3
Loans and Allowance for Loan Losses (Details 7)
$ in Thousands
3 Months Ended
Mar. 31, 2016
USD ($)
Numbers
Number
Construction and Land Development [Member]  
Financing Receivable, Modifications [Line Items]  
Financing Receivable, Pre-Modifications, Number of Contracts | Number 1
Financing Receivable, Modifications, Pre-Modification Outstanding Recorded Investment $ 483
Financing Receivable, Modifications, Post-Modification Outstanding Recorded Investment $ 483
Commercial and Industrial Loans [Member]  
Financing Receivable, Modifications [Line Items]  
Financing Receivable, Pre-Modifications, Number of Contracts | Numbers 1
Financing Receivable, Modifications, Pre-Modification Outstanding Recorded Investment $ 385
Financing Receivable, Modifications, Post-Modification Outstanding Recorded Investment $ 385
v3.4.0.3
Loans and Allowance for Loan Losses (Details 8) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Certain Loans Acquired In Transfer Not Accounted $ 43,088,000  
Less remaining purchase discount (8,798,000)  
Certain Loans Acquired In Transfer 34,290,000  
Less: Allowance for loan losses (29,000) $ 0
Carrying amount, net of allowance 34,261,000  
Commercial and Industrial Sector [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Certain Loans Acquired In Transfer Not Accounted 3,085,000  
Consumer And Other [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Certain Loans Acquired In Transfer Not Accounted 0  
Consumer Real Estate [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Certain Loans Acquired In Transfer Not Accounted 16,487,000  
Commercial Real Estate [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Certain Loans Acquired In Transfer Not Accounted 20,053,000  
Construction and Land Development [Member]    
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]    
Certain Loans Acquired In Transfer Not Accounted $ 3,463,000  
v3.4.0.3
Loans and Allowance for Loan Losses (Details 9) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2016
Mar. 31, 2015
Certain Loans Acquired in Transfer Accounted for as Debt Securities Accretable Yield Movement Schedule [Line Items]    
Accretable yield, beginning of period $ 10,216 $ 3,816
Additions 0 0
Accretion income (628) (393)
Reclassification to nonaccretable (41) 0
Other changes, net 60 107
Accretable yield, end of period $ 9,606 $ 3,530
v3.4.0.3
Loans and Allowance for Loan Losses (Details Textual) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Financing Receivable, Modifications [Line Items]    
Financing Receivable, Recorded Investment, Nonaccrual Status $ 2,639,000 $ 2,252,000
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Allowance for Loan Losses 29,000 0
Trouble Debt Restructuring [Member]    
Financing Receivable, Modifications [Line Items]    
Financing Receivable, Modifications, Recorded Investment 5,843,000 4,990,000
Financing Receivable, Recorded Investment, Nonaccrual Status $ 2,166,000 $ 1,297,000
v3.4.0.3
Commitments and Contingent Liabilities (Details)
$ in Millions
Mar. 31, 2016
USD ($)
Commitments to extend credit $ 127.8
Standby letters of credit $ 2.9
v3.4.0.3
Fair Value Disclosures (Details) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale $ 157,561 $ 166,413
Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 0 0
Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 157,561 166,413
Fair Value, 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 17,829 22,743
U.S. Government-sponsored enterprises (GSEs) [Member] | Fair Value, Inputs, 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] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 17,829 22,743
U.S. Government-sponsored enterprises (GSEs) [Member] | Fair Value, 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 132,068 136,021
Mortgage-backed securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 0 0
Mortgage-backed securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 132,068 136,021
Mortgage-backed securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 0 0
Municipal securities [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 7,664 7,649
Municipal securities [Member] | Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 0 0
Municipal securities [Member] | Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale 7,664 7,649
Municipal securities [Member] | Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total securities available for sale $ 0 $ 0
v3.4.0.3
Fair Value Disclosures (Details 1) - USD ($)
$ in Thousands
Mar. 31, 2016
Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Impaired loans $ 160 $ 160
Foreclosed assets 5,133 5,358
Fair Value, Inputs, Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Impaired loans 0 0
Foreclosed assets 0 0
Fair Value, Inputs, Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Impaired loans 0 0
Foreclosed assets 0 0
Fair Value, Inputs, Level 3 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Impaired loans 160 160
Foreclosed assets $ 5,133 $ 5,358
v3.4.0.3
Fair Value Disclosures (Details 2)
$ in Thousands
3 Months Ended
Mar. 31, 2016
USD ($)
Impaired loans [Member]  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Assets, Fair Value Disclosure, Nonrecurring $ 160
Fair Value Measurements, Valuation Technique Appraisal
Fair Value Measurements, Significant Other Unobservable Input Appraisal Discounts
Fair Value Inputs, Weighted Average of Input 6.00%
Foreclosed assets [Member]  
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Assets, Fair Value Disclosure, Nonrecurring $ 5,133
Fair Value Measurements, Valuation Technique Appraisal
Fair Value Measurements, Significant Other Unobservable Input Appraisal Discounts
Fair Value Inputs, Weighted Average of Input 21.60%
v3.4.0.3
Fair Value Disclosures (Details 3) - USD ($)
Mar. 31, 2016
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Assets:        
Cash and cash equivalents, Carrying Amount $ 68,932,872 $ 79,964,633 $ 41,244,423 $ 46,736,414
Securities available for sale, Carrying Amount 157,561,000 166,413,000    
Restricted investments, Carrying Amount 4,451,250 4,451,050    
Loans, net, Carrying Amount 736,412,390 723,360,786    
Cash and due from banks, Estimated Fair Value 68,933,000 79,965,000    
Securities available for sale, Estimated Fair Value 157,561,000 166,413,000    
Restricted investments, Estimated Fair Value 4,451,000 4,451,000    
Loans, net, Estimated Fair Value 745,547,000 721,338,000    
Liabilities:        
Noninterest-bearing demand deposits, Carrying Amount 132,481,514 131,418,580    
Interest-bearing demand deposits, Carrying Amount 161,453,751 149,423,954    
Savings deposits, Carrying Amount 241,500,000 236,901,000    
Time deposits, Carrying Amount 323,676,013 340,739,072    
Securities sold under agreements to repurchase, Carrying Amount 20,747,022 28,068,215    
Federal Home Loan Bank advances and other borrowings, Carrying Amount 30,125,169 34,187,462    
Noninterest-bearing demand deposits, Estimated Fair Value 132,482,000 131,419,000    
Interest-bearing demand deposits, Estimated Fair Value 161,454,000 149,424,000    
Savings deposits, Estimated Fair Value 241,500,000 236,901,000    
Time deposits, Estimated Fair Value 325,540,000 342,873,000    
Securities sold under agreements to repurchase, Estimated Fair Value 20,747,000 28,068,000    
Federal Home Loan Bank advances and other borrowings, Estimated Fair Value $ 30,139,000 $ 34,169,000