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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2014	Nov. 07, 2014
Document and Entity Information
Entity Registrant Name	Veritex Holdings, Inc.
Entity Central Index Key	0001501570
Document Type	10-Q
Document Period End Date	Sep. 30, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	No
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		9,463,832
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
ASSETS
Cash and due from banks	$ 9,441	$ 8,484
Interest bearing deposits in other banks	58,292	68,162
Total cash and cash equivalents	67,733	76,646
Investment securities	47,497	45,604
Loans held for sale	3,488	2,051
Loans, net	575,398	490,158
Accrued interest receivable	1,351	1,351
Bank-owned life insurance	10,731	10,475
Bank premises, furniture and equipment, net	11,235	9,952
Non-marketable equity securities	3,115	2,714
Investment in subsidiary	93	93
Other real estate owned	1,434	1,797
Intangible assets	1,337	1,567
Goodwill	19,148	19,148
Other assets	2,784	3,415
Total assets	745,344	664,971
Deposits:
Noninterest-bearing	242,688	218,990
Interest-bearing	401,855	354,948
Total deposits	644,543	573,938
Accounts payable and accrued expenses	1,327	1,214
Accrued interest payable and other liabilities	798	508
Advances from Federal Home Loan Bank	15,000	15,000
Other borrowings	8,073	8,072
Total liabilities	669,741	598,732
Commitments and contingencies (Note 6)
Stockholders' equity:
Preferred stock, $0.01 par value; 10,000,000 and 500,000 shares authorized at September 30, 2014 and December 31, 2013, respectively; 8,000 shares Series C, issued and outstanding with a $1,000 liquidation value	8,000	8,000
Common stock, $0.01 par value; 75,000,000 and 10,000,000 shares authorized at September 30, 2014 and December 31, 2013, respectively; 6,358,832 and 5,804,703 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively, (excluding 10,000 shares held in treasury)	64	58
Additional paid-in capital	61,513	55,303
Retained earnings	6,378	2,922
Accumulated other comprehensive income	119	26
Unallocated Employee Stock Ownership Plan shares; 36,935 shares at September 30, 2014	(401)
Less: Treasury stock, 10,000 shares at cost	(70)	(70)
Total stockholders' equity	75,603	66,239
Total liabilities and stockholders' equity	$ 745,344	$ 664,971

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	500,000
Series C preferred stock, shares issued	8,000	8,000
Series C preferred stock, shares outstanding	8,000	8,000
Series C preferred stock, liquidation value (in dollars)	$ 1,000	$ 1,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	75,000,000	10,000,000
Common stock, shares issued	6,358,832	5,804,703
Common stock, shares outstanding	6,358,832	5,804,703
Unallocated Employee Stock Ownership Plan shares, shares	36,935
Treasury stock, shares	10,000	10,000

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Interest income:
Interest and fees on loans	$ 7,183	$ 5,765	$ 19,901	$ 16,682
Interest on investment securities	207	150	629	430
Interest on deposits in other banks	43	36	120	96
Interest on other	1	0	2	1
Total interest income	7,434	5,951	20,652	17,209
Interest expense:
Interest on deposit accounts	609	556	1,770	1,616
Interest on borrowings	123	47	374	203
Total interest expense	732	603	2,144	1,819
Net interest income	6,702	5,348	18,508	15,390
Provision for loan losses	420	375	1,097	1,383
Net interest income after provision for loan losses	6,282	4,973	17,411	14,007
Noninterest income:
Service charges on deposit accounts	213	169	609	537
Gain on sales of investment securities			34
Gain on sales of loans held for sale	241	106	486	530
(Loss) gain on sales of other real estate owned, net	(33)	24	4	41
Bank-owned life insurance	105	109	317	275
Other	104	112	391	443
Total noninterest income	630	520	1,841	1,826
Noninterest expense:
Salaries and employee benefits	2,755	2,230	7,593	6,676
Occupancy of bank premises	497	435	1,418	1,264
Depreciation and amortization	338	327	1,005	934
Data processing	213	183	639	541
FDIC assessment fees	99	100	315	286
Legal fees	50	8	109	56
Other professional fees	222	119	765	393
Advertising and promotions	41	33	134	112
Utilities and telephone	72	79	212	222
Other real estate owned expenses and writedowns	53	116	187	359
Other	490	419	1,446	1,312
Total noninterest expense	4,830	4,049	13,823	12,155
Net income from operations	2,082	1,444	5,429	3,678
Income tax expense	723	492	1,913	1,266
Net income	1,359	952	3,516	2,412
Preferred stock dividends	20		60	40
Net income available to common stockholders	$ 1,339	$ 952	$ 3,456	$ 2,372
Basic earnings per share (in dollars per share)	$ 0.21	$ 0.16	$ 0.55	$ 0.41
Diluted earnings per share (in dollars per share)	$ 0.21	$ 0.16	$ 0.54	$ 0.41

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 1,359	$ 952	$ 3,516	$ 2,412
Other comprehensive (loss) income:
Unrealized (losses) gains on securities available for sale arising during the period, net	(112)	(97)	175	(596)
Reclassification adjustment for net gains included in net income			34
Other comprehensive (losses) gains before tax	(112)	(97)	141	(596)
Income tax (benefit) expense	(38)	(33)	48	(203)
Other comprehensive (losses) gains, net of tax	(74)	(64)	93	(393)
Comprehensive income	$ 1,285	$ 888	$ 3,609	$ 2,019

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Preferred Stock	Common stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Unallocated Employee Stock Ownership Plan Shares	Treasury Stock
Balance at Dec. 31, 2012	$ 61,860	$ 8,000	$ 57	$ 53,750	$ (426)	$ 479
Balance (in shares) at Dec. 31, 2012			5,694,340
Increase (Decrease) in Stockholders' Equity
Sale of common stock	1,150		$ 1	1,149
Sale of common stock (in shares)			114,363
Purchase of Treasury Stock at Cost	(70)							$ (70)
Preferred stock dividend Series C	(40)				(40)
Stock based compensation	241			241
Net income	2,412				2,412
Other comprehensive income (loss)	(393)					(393)
Balance at Sep. 30, 2013	65,160	8,000	$ 58	55,140	1,946	86		(70)
Balance (in shares) at Sep. 30, 2013			5,808,703
Balance at Dec. 31, 2013	$ 66,239	8,000	$ 58	55,303	2,922	26		(70)
Balance (in shares) at Dec. 31, 2013	5,804,703		5,804,703
Increase (Decrease) in Stockholders' Equity
Sale of common stock	$ 5,438		$ 6	5,432
Sale of common stock (in shares)			508,047
Preferred stock dividend Series C	(60)				(60)
Sale and finance of stock to ESOP	500			500			$ (500)
Sale and finance of stock to ESOP (in shares)			46,082
ESOP shares allocated	118			19			99
Stock based compensation	259			259
Net income	3,516				3,516
Other comprehensive income (loss)	93					93
Balance at Sep. 30, 2014	$ 75,603	$ 8,000	$ 64	$ 61,513	$ 6,378	$ 119	$ (401)	$ (70)
Balance (in shares) at Sep. 30, 2014	6,358,832		6,358,832

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:
Net income	$ 3,516	$ 2,412
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,005	934
Provision for loan losses	1,097	1,383
Accretion of loan purchase discount	(469)	(337)
Stock based compensation expense	259	241
Amortization of other intangible assets	9	10
Net amortization of premiums on investment securities	319	290
Change in cash surrender value of bank-owned life insurance	(256)	(232)
Gain on sales of investment securities	(34)
Gain on sales of loans held for sale	(486)	(530)
Amortization of subordinated note discount	1
Net gain on sales of other real estate owned	(4)	(41)
Writedowns of other real estate owned		266
Net originations of loans held for sale	(30,540)	(27,466)
Proceeds from sales of loans held for sale	29,589	28,149
Decrease in accrued interest receivable and other assets	632	283
Increase in accrued expenses, account payable, accrued interest payable and other liabilities	355	333
Net cash provided by operating activities	4,993	5,695
Cash flows from investing activities:
Purchases of securities available for sale	(10,983)	(18,120)
Sales of securities available for sale	981
Proceeds from maturities, calls and pay downs of securities available for sale	7,965	7,616
Proceeds from sale of fixed assets		9
Purchases of non-marketable equity securities, net	(401)	(124)
Net loans originated	(86,978)	(53,666)
Purchases of bank-owned life insurance		(5,000)
Net additions to bank premises and equipment	(2,068)	(434)
Proceeds from sales of other real estate owned	1,477	1,221
Net cash used in investing activities	(90,007)	(68,498)
Cash flows from financing activities:
Net change in deposits	70,605	67,226
Net increase in advances from Federal Home Loan Bank		5,000
Dividends paid on preferred stock	(60)	(40)
Purchase of Treasury Stock		(70)
Proceeds from payments on ESOP Loan	118
Proceeds from issuance of common stock, net	5,438	1,150
Net cash provided by financing activities	76,101	73,266
Net (decrease) increase in cash and cash equivalents	(8,913)	10,463
Cash and cash equivalents at beginning of year	76,646	53,160
Cash and cash equivalents at end of period	67,733	63,623
Supplemental disclosures of cash flow information:
Cash paid for interest	2,120	1,820
Cash paid for income taxes	1,955	1,575
Supplemental disclosures of non-cash flow information:
Sale and finance of stock to ESOP	500
Net foreclosure of other real estate owned	$ 1,110	$ 1,092

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2014

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

Nature of Operations

Veritex Holdings, Inc. (Veritex) through its wholly-owned subsidiary, Veritex Community Bank, a Texas state banking organization (Bank) (collectively known as the Company), with corporate offices in Dallas, Texas, currently operates eight branches and one mortgage office located throughout the greater Dallas, Texas metropolitan area. The Bank provides a full range of banking services to individual and corporate customers, which include commercial and retail lending, and the acceptance of checking and savings deposits. The Texas Department of Banking and the Federal Reserve are the primary regulators of the Company, which undergoes periodic examinations by those regulatory authorities.

Organization and Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Veritex and its wholly-owned subsidiary, the Bank. All material intercompany transactions have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP), but do not include all of the information and footnotes required for complete financial statements. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated financial position at September 30, 2014, consolidated results of operations for the three and nine months ended September 30, 2014 and 2013, consolidated stockholders’ equity for the nine months ended September 30, 2014 and 2013 and consolidated cash flows for the nine months ended September 30, 2014 and 2013.

Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown in this report are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2013 included within the Company’s registration statement, on Form S-1 as filed with the Securities and Exchange Commission and declared effective October 8, 2014.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Earnings Per Share

Earnings per share (EPS) are based upon the weighted-average shares outstanding. The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the three and nine months ended September 30, 2014 and 2013:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Earnings (numerator)
Net income for common stockholders	$	1,359	$	952	$	3,516	$	2,412
Less: preferred stock dividends	20		—		60		40
Net income allocated to common stockholders	$	1,339	$	952	$	3,456	$	2,372
Shares (denominator)
Weighted average shares outstanding for basic EPS (thousands)	6,322		5,803		6,262		5,782
Dilutive effect of employee stock based awards and warrants	141		60		133		62
Adjusted weighted average shares outstanding	6,463		5,863		6,395		5,844
Earnings per share:
Basic	$	0.21	$	0.16	$	0.55	$	0.41
Diluted	$	0.21	$	0.16	$	0.54	$	0.41

For the nine months ended September 30, 2014 and 2013, the Company excluded from diluted EPS weighted average shares of performance stock options representing the right to purchase 462,000 and 423,000 shares of the Company’s common stock, respectively, because the issuance of shares related to these options is contingent upon the satisfaction of certain conditions unrelated to earnings or market value and these conditions were not expected to be met.

For the three months ended September 30, 2014 and 2013, the Company excluded from diluted EPS weighted average shares of performance stock options representing the right to purchase 468,000 and 418,000 shares of the Company’s common stock, respectively, because the issuance of shares related to these options is contingent upon the satisfaction of certain conditions unrelated to earnings or market value and these conditions were not expected to be met.

Common Stock and Preferred Stock	9 Months Ended
Common Stock and Preferred Stock	Sep. 30, 2014
Common Stock and Preferred Stock
Common Stock and Preferred Stock	2. Common Stock and Preferred Stock During January 2014, the Company engaged in a private offering of up to 500,000 shares of its common stock, par value $0.01 per share, at a price of $10.85 per share. As of March 31, 2014, the offering was completed and closed. The Company issued 490,773 shares in the offering generating total proceeds of approximately $5,325 and had offering costs of approximately $60. In addition, the Company issued 17,274 shares of common stock to an existing principal shareholder at $10 per share generating total proceeds of approximately $173. The Company intends to use the proceeds from the stock issuances to support the growth of the Company. We amended and restated our certificate of formation in September of 2014 authorizing us to issue up to 75,000,000 shares of common stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share, of which 8,000 shares are designated Series C preferred stock.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=6521494

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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Investment Securities

9 Months Ended

Sep. 30, 2014

Investment Securities

Investment Securities

3. Investment Securities

The carrying amount of securities and their approximate fair values at September 30, 2014 and December 31, 2013 are as follows:

September 30, 2014

Amortized
Cost

Gross
Unrealized
Gains

Gross
Unrealized
Losses

Fair
Value

Available for Sale

U.S. government agencies

1,929

—

1,857

Corporate bonds

500

—

501

Municipal securities

957

—

990

Mortgage-backed securities

30,246

225

103

30,368

Collateralized mortgage obligations

12,493

127

12,565

Asset-backed securities

1,191

—

1,216

47,316

411

230

47,497

	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for Sale
U.S. government agencies	$	2,019	$	—	$	95	$	1,924
Corporate bonds	1,445		35		—		1,480
Municipal securities	934		24		—		958
Mortgage-backed securities	24,898		220		187		24,931
Collateralized mortgage obligations	14,898		158		141		14,915
Asset-backed securities	1,370		26		—		1,396
	$	45,564	$	463	$	423	$	45,604

The following tables disclose the Company’s investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months:

	September 30, 2014
	Less Than 12 Months				12 Months or More				Totals
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Available for Sale
U.S. government agencies	$	—	$	—	$	1,857	$	72	$	1,857	$	72
Mortgage-backed securities	10,472		34		7,480		69		17,952		103
Collateralized mortgage obligations	5,439		47		878		8		6,317		55
	$	15,911	$	81	$	10,215	$	149	$	26,126	$	230

	December 31, 2013
	Less Than 12 Months				12 Months or More				Totals
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Available for Sale
U.S. government agencies	$	1,924	$	95	$	—	$	—	$	1,924	$	95
Mortgage-backed securities	10,612		187		—		—		10,612		187
Collateralized mortgage obligations	10,222		140		46		1		10,268		141
	$	22,758	$	422	$	46	$	1	$	22,804	$	423

The number of investment positions in an unrealized loss position totaled 23 at September 30, 2014. The Company does not believe these unrealized losses are “other than temporary” as (i) the Company does not have the intent to sell investment securities prior to recovery and (ii) it is more likely than not that the Company will not have to sell these securities prior to recovery. The unrealized losses noted are interest rate related due to the level of interest rates at September 30, 2014. The Company has reviewed the ratings of the issuers and has not identified any issues related to the ultimate repayment of principal as a result of credit concerns on these securities.

The amortized costs and estimated fair values of securities available for sale, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayments penalties. Mortgage–backed securities, collateralized mortgage obligations, and asset-backed securities typically are issued with stated principal amounts, and the securities are backed by pools of mortgage loans and other loans that have varying maturities. The term of mortgage-backed securities, collateralized mortgage obligations and asset-backed securities thus approximates the term of the underlying mortgages and loans and can vary significantly due to prepayments. Therefore, these securities are not included in the maturity categories below.

	September 30, 2014
	Available For Sale
	Amortized Cost		Fair Value
Due in one year or less	$	500	$	501
Due from one year to five years	1,457		1,477
Due from five years to ten years	1,429		1,370
Due after ten years	—		—
	3,386		3,348
Mortgage-backed securities	30,246		30,368
Collateralized mortgage obligations	12,493		12,565
Asset-backed securities	1,191		1,216
	$	47,316	$	47,497

	December 31, 2013
	Available For Sale
	Amortized Cost		Fair Value
Due in one year or less	$	—	$	—
Due from one year to five years	2,379		2,438
Due from five years to ten years	2,019		1,924
Due after ten years	—		—
	4,398		4,362
Mortgage-backed securities	24,898		24,931
Collateralized mortgage obligations	14,898		14,915
Asset-backed securities	1,370		1,396
	$	45,564	$	45,604

Proceeds from sales of investment securities available for sale and gross gains and losses for the nine months ended September 30, 2014 and 2013 were as follows:

	September 30, 2014		September 30, 2013
Proceeds from sales	$	981	—
Gross realized gains	34		—
Gross realized losses	—		—

There was a blanket floating lien on certain securities to secure Federal Home Loan Bank advances as of September 30, 2014 and December 31, 2013.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References + Details

Loans and Allowance for Loan Losses

9 Months Ended

Sep. 30, 2014

Loans and Allowance for Loan Losses

Loans and Allowance for Loan Losses

4. Loans and Allowance for Loan Losses

Loans in the accompanying consolidated balance sheets are summarized as follows:

	September 30, 2014			December 31, 2013
Real estate:
Construction and land	$	66,626		$	47,643
Farmland	11,643			11,656
1 - 4 family residential	99,261			86,908
Multi-family residential	16,272			11,862
Nonfarm nonresidential	188,209			171,451
Commercial	195,073			160,823
Consumer	4,254			4,927
	581,338			495,270
Deferred loan fees	(60		)	(94		)
Allowance for loan losses	(5,880		)	(5,018		)
	$	575,398		$	490,158

Included in the net loan portfolio as of September 30, 2014 and December 31, 2013 is an accretable discount related to loans acquired within a business combination in the approximate amounts of $198 and $667, respectively. The discount is being accreted into income using the interest method over the life of the loans.

The majority of the loan portfolio is comprised of loans to businesses and individuals in the Dallas metropolitan area. This geographic concentration subjects the loan portfolio to the general economic conditions within this area. The risks created by this concentration have been considered by management in the determination of the adequacy of the allowance for loan losses. Management believes the allowance for loan losses is adequate to cover estimated losses on loans as of September 30, 2014 and December 31, 2013.

Non-Accrual and Past Due Loans

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Non-accrual loans, excluding purchased credit impaired loans, aggregated by class of loans as of September 30, 2014 and December 31, 2013 are as follows:

	September 30, 2014		December 31, 2013
Real estate:
Construction and land	$	76	$	76
Farmland	—		—
1 - 4 family residential	—		1,041
Multi-family residential	—		—
Nonfarm nonresidential	369		—
Commercial	—		—
Consumer	—		—
	$	445	$	1,117

For the nine months ended September 30, 2014 and 2013, gross interest income that would have been recorded had the Company’s non-accrual loans been current in accordance with their original terms was minimal.

An age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans, as of September 30, 2014 and December 31, 2013 is as follows:

	September 30, 2014
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due and Still Accruing
Real estate:
Construction and land	$	—	$	—	$	76	$	76	$	66,550	$	66,626	$	—
Farmland	—		—		—		—		11,643		11,643		—
1 - 4 family residential	299		—		—		299		98,962		99,261		—
Multi-family residential	—		—		—		—		16,272		16,272		—
Nonfarm nonresidential	—		—		—		—		188,209		188,209		—
Commercial	598		36		3		637		194,436		195,073		3
Consumer	34		—		—		34		4,220		4,254		—
	$	931	$	36	$	79	$	1,046	$	580,292	$	581,338	$	3

	December 31, 2013
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due and Still Accruing
Real estate:
Construction and land	$	19	$	—	$	76	$	95	$	47,548	$	47,643	$	—
Farmland	—		—		—		—		11,656		11,656		—
1 - 4 family residential	168		—		1,041		1,209		85,699		86,908		—
Multi-family residential	—		—		—		—		11,862		11,862		—
Nonfarm nonresidential	—		—		—		—		171,451		171,451		—
Commercial	94		—		—		94		160,729		160,823		—
Consumer	34		9		9		52		4,875		4,927		9
	$	315	$	9	$	1,126	$	1,450	$	493,820	$	495,270	$	9

Impaired Loans

Impaired loans are those loans where it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. All troubled debt restructurings (TDRs) are considered impaired loans. Impaired loans are measured based on either the present value of expected future cash flows discounted at the loan’s effective interest rate; the loan’s observable market price; or the fair value of the collateral if the loan is collateral dependent. Substantially all of the Company’s impaired loans are measured at the fair value of the collateral. Impaired loans, or portions thereof, are charged off when deemed uncollectible.

Impaired loans, including purchased credit impaired loans, at September 30, 2014 and December 31, 2013 are summarized in the following tables.

	September 30, 2014
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment During Year
Real estate:
Construction and land	$	895	$	76	$	541	$	617	$	34	$	629
Farmland	—		—		—		—		—		—
1 - 4 family residential	169		169		—		169		—		218
Multi-family residential	—		—		—		—		—		—
Nonfarm nonresidential	1,084		1,084		—		1,084		—		944
Commercial	525		253		272		525		178		346
Consumer	42		5		37		42		13		44
Total	$	2,715	$	1,587	$	850	$	2,437	$	225	$	2,181

	December 31, 2013
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment During Year
Real estate:
Construction and land	$	971	$	645	$	—	$	645	$	—	$	871
Farmland	—		—		—		—		—		—
1 - 4 family residential	1,212		1,212		—		1,212		—		1,306
Multi-family residential	—		—		—		—		—		—
Nonfarm nonresidential	1,900		1,900		—		1,900		—		1,462
Commercial	366		366		—		366		—		366
Consumer	32		32		—		32		—		28
Total	$	4,481	$	4,155	$	—	$	4,155	$	—	$	4,033

Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis.

For the nine months ended September 30, 2014, total interest income and cash-based interest income recognized on impaired loans was minimal.

Troubled Debt Restructuring

Modifications of terms for the Company’s loans and their inclusion as troubled debt restructurings (TDRs) are based on individual facts and circumstances. Loan modifications that are included as TDRs may involve a reduction of the stated interest rate of the loan, an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk, or deferral of principal payments, regardless of the period of the modification.

All TDRs are measured individually for impairment. The recorded investment in TDRs was approximately $1,694 and $4,078 as of September 30, 2014 and December 31, 2013.

During the nine months ended September 30, 2014, the terms of certain loans that were not significant were modified as troubled debt restructurings.

During the nine months ended September 30, 2013, the terms of certain loans were modified as troubled debt restructurings and were as follows:

				During the nine months ended September 30, 2013
				Post-Modification Outstanding Recorded Investment
	Number of Loans	Pre- Modification Outstanding Recorded Investment		Adjusted Interest Rate		Extended Maturity		Extended Maturity and Restructured Payments		Extended Maturity, Restructured Payments and Adjusted Interest Rate
Real estate loans:
Construction and land	—	$	—	$	—	$	—	$	—	$	—
Farmland	—	—		—		—		—		—
1 - 4 family residential	1	1,032		—		1,032		—		—
Multi-family residential	—	—		—		—		—		—
Nonfarm nonresidential	1	1,180		—		1,180		—		—
Commercial	—	—		—		—		—		—
Consumer	—	—		—		—		—		—
Total	2	$	2,212	$	—	$	2,212	$	—	$	—

Of the two loans restructured during the nine months ended September 30, 2013 both were performing as agreed to the modified terms. No specific allowance for loan losses was recorded for loans that were modified as of September 30, 2013.

There was one loan modified as a troubled debt restructure within the twelve months ended September 30, 2013 for which there was a payment default during the previous nine month ended September 30, 2013. The loan was secured by real estate and the collateral property was foreclosed upon subsequent to the default. No amounts were recorded against the allowance for loan losses related to the foreclosure. A default for purposes of this disclosure is a troubled debt restructured loan in which the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral.

Interest income recorded during the nine months ended September 30, 2014 and 2013 on the restructured loans and interest income that would have been recorded had the terms of the loan not been modified was minimal.

The Company has not committed to lend additional amounts to customers with outstanding loans that were classified as TDRs as of September 30, 2014 or December 31, 2013.

Credit Quality Indicators

From a credit risk standpoint, the Company classifies its loans in one of four categories: (i) pass, (ii) special mention, (iii) substandard or (iv) doubtful. Loans classified as loss are charged-off.

The classifications of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on criticized credits monthly. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit as of each monthly reporting period. All classified credits are evaluated for impairments. If impairment is determined to exist, a specific reserve is established. The Company’s methodology is structured so that specific reserves are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss).

Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness, however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly.

Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses which exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed.

Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on non-accrual.

As of September 30, 2014 and December 31, 2013, the following summarizes the Company’s internal ratings of its loans, including purchased credit impaired loans:

	September 30, 2014
	Pass		Special Mention		Substandard		Doubtful		Total
Real estate:
Construction and land	$	66,009	$	—	$	617	$	—	$	66,626
Farmland	11,643		—		—		—		11,643
1 - 4 family residential	99,221		—		40		—		99,261
Multi-family residential	16,272		—		—		—		16,272
Nonfarm nonresidential	187,840		—		369		—		188,209
Commercial	192,660		689		1,724		—		195,073
Consumer	4,051		—		203		—		4,254
Total	$	577,696	$	689	$	2,953	$	—	$	581,338

	December 31, 2013
	Pass		Special Mention		Substandard		Doubtful		Total
Real estate:
Construction and land	$	46,998	$	—	$	645	$	—	$	47,643
Farmland	11,656		—		—		—		11,656
1 - 4 family residential	85,649		—		1,259		—		86,908
Multi-family residential	11,862		—		—		—		11,862
Nonfarm nonresidential	171,371		—		80		—		171,451
Commercial	158,919		731		1,173		—		160,823
Consumer	4,878		7		42		—		4,927
Total	$	491,333	$	738	$	3,199	$	—	$	495,270

An analysis of the allowance for loan losses for the nine months ended September 30, 2014 and 2013 and the twelve months ended December 31, 2013 is as follows:

	Nine Months Ended September 30, 2014			Twelve Months Ended December 31, 2013			Nine Months Ended September 30, 2013
Balance at beginning of year	$	5,018		$	3,238		$	3,238
Provision charged to earnings	1,097			1,883			1,383
Charge-offs	(266		)	(240		)	(218		)
Recoveries	31			137			120
Net charge-offs	(235		)	(103		)	(98		)
Balance at end of period	$	5,880		$	5,018		$	4,523

The following tables summarize the activity in the allowance for loan losses by class of loans for the nine months ended September 30, 2014 and 2013 and the twelve months ended December 31, 2013 is as follows:

	September 30, 2014
	Real Estate
	Construction Land and Farmland			Residential			Nonfarm Non- Residential		Commercial			Consumer			Total
Balance at beginning of year	$	660		$	970		$	1,726	$	1,585		$	77		$	5,018
Provision charged to earnings	146			247			82		632			(10		)	1,097
Charge-offs	(28		)	(30		)	—		(205		)	(3		)	(266		)
Recoveries	—			—			2		27			2			31
Net charge-offs	(28		)	(30		)	2		(178		)	(1		)	(235		)
Balance at end of period	$	778		$	1,187		$	1,810	$	2,039		$	66		$	5,880
Period-end amount allocated to:
Specific Reserves:
Impaired loans	$	—		$	—		$	—	$	178		$	13		$	191
Purchased credit impaired loans	34			—			—		—			—			34
Total specific reserves	34			—			—		178			13			225
General reserves	744			1,187			1,810		1,861			53			5,655
Total	$	778		$	1,187		$	1,810	$	2,039		$	66		$	5,880

	December 31, 2013
	Real Estate
	Construction Land and Farmland		Residential			Nonfarm Non- Residential		Commercial			Consumer			Total
Balance at beginning of year	$	455	$	755		$	1,028	$	947		$	53		$	3,238
Provision charged to earnings	205		240			698		716			24			1,883
Charge-offs	—		(85		)	—		(110		)	(45		)	(240		)
Recoveries	—		60			—		32			45			137
Net charge-offs	—		(25		)	—		(78		)	—			(103		)
Balance at end of year	$	660	$	970		$	1,726	$	1,585		$	77		$	5,018
Period-end amount allocated to:
Specific Reserves:
Impaired loans	$	—	$	—		$	—	$	—		$	—		$	—
Purchased credit impaired loans	—		—			—		—			—			—
Total specific reserves	—		—			—		—			—			—
General reserves	660		970			1,726		1,585			77			5,018
Total	$	660	$	970		$	1,726	$	1,585		$	77		$	5,018

	September 30, 2013
	Real Estate
	Construction Land and Farmland		Residential			Nonfarm Non- Residential		Commercial			Consumer			Total
Balance at beginning of year	$	455	$	755		$	1,028	$	947		$	53		$	3,238
Provision charged to earnings	39		250			555		501			38			1,383
Charge-offs	—		(85		)	—		(90		)	(43		)	(218		)
Recoveries	—		60			—		29			31			120
Net charge-offs	—		(25		)	—		(61		)	(12		)	(98		)
Balance at end of period	$	494	$	980		$	1,583	$	1,387		$	79		$	4,523
Period-end amount allocated to:
Specific Reserves:
Impaired loans	$	—	$	—		$	—	$	—		$	—		$	—
Purchased credit impaired loans	—		—			—		—			—			—
Total specific reserves	—		—			—		—			—			—
General reserves	494		980			1,583		1,387			79			4,523
Total	$	494	$	980		$	1,583	$	1,387		$	79		$	4,523

The Company’s recorded investment in loans as of September 30, 2014 and December 31, 2013 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows:

September 30, 2014

Real Estate

Construction
Land and
Farmland

Residential

Nonfarm Non-
Residential

Commercial

Consumer

Total

Loans individually evaluated for impairment

617

169

1,084

525

2,437

Loans collectively evaluated for impairment

77,652

115,364

187,125

194,548

4,212

578,901

Total

78,269

115,533

188,209

195,073

4,254

581,338

	December 31, 2013
	Real Estate
	Construction Land and Farmland		Residential		Nonfarm Non- Residential		Commercial		Consumer		Total
Loans individually evaluated for impairment	$	645	$	1,212	$	1,900	$	366	$	32	$	4,155
Loans collectively evaluated for impairment	58,654		97,558		169,551		160,457		4,895		491,115
Total	$	59,299	$	98,770	$	171,451	$	160,823	$	4,927	$	495,270

The Company acquired certain loans which experienced credit deterioration since origination (Purchased credit impaired loans). Accretion on purchased credit impaired loans is based on estimated future cash flows, regardless of contractual maturity. The related carrying amount of those loans as of September 30, 2014 and December 31, 2013 are $541,000 and $569,000 respectively.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Income Taxes

9 Months Ended

Sep. 30, 2014

Income Taxes

Income Taxes

5. Income Taxes

Income tax expense and the effective tax rates for the nine months ended September 30, 2014 and 2013 is summarized as follows:

	Nine months ended September 30,
	2014			2013
Income tax expense:	$	1,913		$	1,266
Effective tax rate	35.2		%	34.4		%

The differences between the statutory rate of 34.0% and the effective tax rates presented in the table above were primarily attributable to permanent differences related to stock option expense, bank-owned life insurance income, and other non-deductible expenses.

Deferred income taxes reflect the net tax effects of temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes, and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities at September 30, 2014 and December 31, 2013 are as follows:

	September 30, 2014		December 31, 2013
Deferred tax assets:
Net operating loss	$	—	$	96
Organizational costs	175		183
Allowance for loan losses	1,812		1,619
Deferred loan fees	24		32
Non-accrual interest	59		62
Capital loss carryforward	85		85
OREO write down for book purposes	55		55
Deferred rent expenses	62		70
Restricted stock	103		84
Accrued bonuses	162		243
Other	135		134
Total deferred tax assets	2,672		2,663
Deferred tax liabilities:
Net unrealized gain on securities available for sale	62		14
Core deposit intangibles	462		512
FHLB stock dividends	26		26
Bank premises and equipment	993		1,118
Total deferred tax liabilities	1,543		1,670
Net deferred tax asset	$	1,129	$	993

Included in the accompanying consolidated balance sheets as of September 30, 2014 is a current tax receivable of approximately $183 in other assets and a net deferred tax asset of approximately $1,129 in other assets. Included in the accompanying consolidated balance sheets in other assets as of December 31, 2013 is a current tax receivable of approximately $292 and a net deferred tax asset of approximately $993.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2014
Commitments and Contingencies
Commitments and Contingencies	6. Commitments and Contingencies Litigation The Company may from time to time be involved in legal actions arising from normal business activities. Management believes that these actions are without merit or that the ultimate liability, if any, resulting from them will not materially affect the financial position or results of operations of the Company. Operating Leases The Company leases several of its banking facilities under operating leases. Rental expense related to these leases was approximately $1,105 and $999 for the nine months ended September 30, 2014 and 2013, respectively.

Fair Value Disclosures

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures

Fair Value Disclosures

7. Fair Value Disclosures

ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact.

ASC Topic 820 requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

Level 1 Inputs. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs. Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 investments consist primarily of obligations of U.S. government sponsored enterprises and agencies, obligations of state and municipal subdivisions, corporate bonds and mortgage-backed securities.

Level 3 Inputs. Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

Assets and liabilities measured at fair value on a recurring basis include the following:

Investment Securities Available for Sale: Securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For those securities classified as Level 2, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U. S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the bond’s terms and conditions, among other things.

The following table summarizes assets measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Fair Value Measurements Using
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
At September 30, 2014:
Investment securities available for sale	$	—	$	47,497	$	—	$	47,497
At December 31, 2013:
Investment securities available for sale	$	—	$	45,604	$	—	$	45,604

There were no liabilities measured at fair value on a recurring basis as of September 30, 2014 or December 31, 2013.

There were no transfers between Level 2 and Level 3 during the nine months ended September 30, 2014 and 2013.

In accordance with ASC Topic 820, certain assets and liabilities are measured at fair value on a non-recurring basis; that is, the instruments 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).

Assets measured at fair value on a non-recurring basis include impaired loans and other real estate owned. The fair value of impaired loans with specific allocations of the allowance for loan losses and other real estate owned is based upon recent real estate appraisals less estimated costs of sale. For residential real estate impaired loans and other real estate owned, appraised values are based on the comparative sales approach. For commercial and commercial real estate impaired loans and other real estate owned, appraisers may use either a single valuation approach or a combination of approaches such as comparative sales, cost or the income approach. A significant unobservable input in the income approach is the estimated income capitalization rate for a given piece of collateral. Adjustments to appraisals may be made to reflect local market conditions or other economic factors and may result in changes in the fair value of a given asset over time. As such, the fair value of impaired loans and other real estate owned are considered a Level 3 in the fair value hierarchy.

The Company recovers the carrying value of other real estate owned through the sale of the property. The ability to affect future sales prices is subject to market conditions and factors beyond the Company’s control and may impact the estimated fair value of a property.

Appraisals for impaired loans and other real estate owned are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by the Company. Once reviewed, a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparisons to independent data sources such as recent market data or industry wide-statistics. On a periodic basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustments, if any, should be made to the appraisal value to arrive at fair value.

The following table summarizes assets measured at fair value on a non-recurring basis as of September 30, 2014 and December 31, 2013, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Fair Value Measurements Using								Period
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value		Ended Total Losses
At September 30, 2014:
Assets:
Impaired loans	$	—	$	—	$	2,212	$	2,212	$	225
Other real estate owned	$	—	$	—	$	1,335	$	1,335	$	—
At December 31, 2013:
Assets:
Impaired loans	$	—	$	—	$	4,155	$	4,155	$	—
Other real estate owned	$	—	$	—	$	1,797	$	1,797	$	162

There were no liabilities measured at fair value on a non-recurring basis as of September 30, 2014 and December 31, 2013.

For Level 3 financial and nonfinancial assets measured at fair value as of September 30, 2014 and December 31, 2013, the significant unobservable inputs used in the fair value measurements were as follows:

September 30, 2014

Assets/Liabilities	Fair Value		Valuation Technique	Unobservable Input(s)	Weighted Average
Impaired loans	$	2,212	Collateral Method	Adjustments for selling costs	8	%
Other real estate owned	$	1,335	Collateral Method	Adjustments for selling costs	15	%

December 31, 2013

Assets/Liabilities	Fair Value		Valuation Technique	Unobservable Input(s)	Weighted Average
Impaired loans	$	4,155	Collateral Method	Adjustments for selling costs	8	%
Other real estate owned	$	1,797	Collateral Method	Adjustments for selling costs	8	%

Fair Value of Financial Instruments

The Company is required under current authoritative guidance to disclose the estimated fair value of their financial instrument assets and liabilities including those subject to the requirements discussed above. For the Company, as for most financial institutions, substantially all of its assets and liabilities are considered financial instruments, as defined. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction.

The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values.

The methods and assumptions used by the Company in estimating fair values of financial instruments as disclosed herein in accordance with ASC Topic 825, Financial Instruments, other than for those measured at fair value on a recurring and nonrecurring basis discussed above, are as follows:

Cash and cash equivalents: The carrying amounts of cash and cash equivalents approximate their fair value.

Loans and loans held for sale: For variable-rate loans that reprice frequently and have no significant changes in credit risk, fair values are based on carrying values. Fair values for certain mortgage loans (for example, one-to-four family residential), commercial real estate and commercial loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.

Bank-owned life insurance: The carrying amounts of bank-owned life insurance approximate their fair values.

Non-marketable equity securities: The carrying value of restricted securities such as stock in the Federal Home Loan Bank of Dallas and Independent Bankers Financial Corporation approximates fair value.

Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is their carrying amounts). The carrying amounts of variable-rate certificates of deposit (CDs) approximate their fair values at the reporting date. Fair values for fixed-rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits.

Advances from Federal Home Loan Bank: The fair value of advances maturing within 90 days approximates carrying value. Fair value of other advances is based on the Company’s current borrowing rate for similar arrangements.

Other borrowings: The fair values are based upon prevailing rates on similar debt in the market place.

Accrued interest: The carrying amounts of accrued interest approximate their fair values due to short term maturity.

Off-balance sheet instruments: Commitments to extend credit and standby letters of credit are generally priced at market at the time of funding and were not material to the Company’s consolidated financial statements.

The estimated fair values and carrying values of all financial instruments under current authoritative guidance as of September 30, 2014 and December 31, 2013 were as follows:

	September 30, 2014				December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Level 2 inputs:
Cash and cash equivalents	$	67,733	$	67,733	$	76,646	$	76,646
Securities available for sale	47,497		47,497		45,604		45,604
Loans held for sale	3,488		3,488		2,051		2,051
Accrued interest receivable	1,351		1,351		1,351		1,351
Bank-owned life insurance	10,731		10,731		10,475		10,475
Non-marketable equity securities	3,115		3,115		2,714		2,714
Level 3 inputs:
Loans, net	575,398		574,469		490,158		490,344
Financial liabilities:
Level 2 inputs:
Deposits	$	644,543	$	639,847	$	573,938	$	568,451
Advances from FHLB	15,000		15,028		15,000		15,055
Accrued interest payable	161		161		134		134
Other borrowings	8,073		8,073		8,072		8,072

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Financial Instruments with Off-Balance Sheet Risk

9 Months Ended

Sep. 30, 2014

Financial Instruments with Off-Balance Sheet Risk

Financial Instruments with Off-Balance Sheet Risk

8. Financial Instruments with Off-Balance Sheet Risk

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheet.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments.

The following table sets forth the approximate amounts of these financial instruments as of September 30, 2014 and December 31, 2013:

	September 30, 2014		December 31, 2013
Commitments to extend credit	$	111,689	$	92,827
Standby letters of credit	867		210
	$	112,556	$	93,037

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Management evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the borrower.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company’s policy for obtaining collateral and the nature of such collateral is essentially the same as that involved in making commitments to extend credit.

Although the maximum exposure to loss is the amount of such commitments, management currently anticipates no material losses from such activities.

Employee Benefits

9 Months Ended

Sep. 30, 2014

Employee Benefits

Employee Benefits

9. Employee Benefits

Defined contribution plan

The Company maintains a retirement savings 401(k) profit sharing plan (Plan) in which substantially all employees may participate. The Plan provides for “before tax” employee contributions through salary reductions under section 401(k) of the Internal Revenue Code. The Company may make a discretionary match of employees’ contributions based on a percentage of salary deferrals and certain discretionary profit sharing contributions. No matching contributions to the Plan were made during the nine months ending September 30, 2014 and 2013.

ESOP

Effective January 1, 2012, the Company adopted an Employee Stock Ownership Plan (ESOP) covering all employees that meet certain age and service requirements. Plan assets are held and managed by the Company. Shares of the Company’s common stock purchased by the Veritex Community Bank Employee Stock Ownership Plan (ESOP) are held in a suspense account until released for allocation to participants. Shares released are allocated to each eligible participant based on the participant’s 401(k) contribution made during that year. Compensation expense is measured based upon the expected amount of the Company’s discretionary contribution which is determined on an annual basis and is accrued ratably over the year. Shares are committed to be released to settle the liability upon formal declaration of the contribution at the end of the year. The number of shares released to settle the liability is based upon fair value of the shares as of the end of the year and become outstanding shares for earnings per share computations. The cost of shares issued to the ESOP, but not yet committed to be released, is shown as a reduction of stockholders’ equity. To the extent that the fair value of the ESOP shares differs from the cost of such shares, the difference is charged or credited to stockholders’ equity as additional paid in capital.

The Company accrued approximately $120 as of December 31, 2013 to contribute to the ESOP. During the year ended December 31, 2013, the ESOP purchased 7,811 shares of the Company’s common stock and allocated the shares to the plan participants.

In January 2014, the ESOP borrowed $500 from the Company and purchased 46,082 shares of the common stock of the Company. The ESOP debt is secured by shares of the Company. The loan will be repaid from contributions to the ESOP from the Company. As the debt is repaid, shares are released from collateral and allocated to employees’ accounts. The shares pledged as collateral are reported as unearned ESOP shares in the consolidated balance sheets. During the nine months ended September 30, 2014 the ESOP loan was repaid approximately $118 from contributions to ESOP from the Company. As a result of the repayment, 9,147 shares were released from collateral and allocated to employee participant accounts. Compensation expense attributed to the ESOP contributions recorded in the accompanying consolidated statements of income for the nine months ended September 30, 2014 and 2013 was approximately $135 and $90, respectively.

The following is a summary of ESOP shares as of September 30, 2014 and December 31, 2013.

	September 30, 2014		December 31, 2013
Allocated shares	16,958		7,811
Unearned shares	36,935		—
Total ESOP shares	53,893		7,811
Fair value of unearned shares	$	476	$	—

Stock and Incentive Plans

9 Months Ended

Sep. 30, 2014

Stock and Incentive Plans

Stock and Incentive Plans

10. Stock and Incentive Plans

2010 Stock Option and Equity Incentive Plan

In 2010, the Company adopted the 2010 Stock Option and Equity Incentive Plan (the Incentive Plan), which the Company’s shareholders’ approved in 2011, The maximum number of shares of common stock that may be issued pursuant to grants or options under the Incentive Plan is 1,000,000. The Incentive Plan is administered by the Board of Directors and provides for both the direct award of stock and the grant of stock options to eligible directors, officers, employees and outside consultants of the Company or its affiliates as defined in the Incentive Plan. The Company may grant either incentive stock options or nonqualified stock options as directed in the Incentive Plan.

The Board authorized that the Incentive Plan provide for the award of 100,000 shares of direct stock awards (restricted shares) and 900,000 shares of stock options, of which 500,000 shares are performance-based stock options. Options are generally granted with an exercise price equal to the market price of the Company’s stock at the date of the grant; those option awards generally vest based on 5 years of continuous service and have 10-year contractual terms for non-controlling participants as defined by the Incentive Plan, and forfeiture of unexercised options upon termination of employment with the Company. Other grant terms can vary for controlling participants as defined by the Incentive Plan. Restricted share awards generally vest after 4 years of continuous service. The terms of the Incentive Plan include a provision whereby all unearned non-performance options and restricted shares become immediately exercisable and fully vested upon a change in control. The vesting of a performance-based stock option is contingent upon a change of control and the achievement of specific performance criteria or other objectives set at the grant date.

During the nine months ended September 30, 2014, the Company awarded 28,500 restricted shares, 30,000 nonperformance-based stock options and 50,000 performance-based stock options. During the nine months ended September 30, 2013, the Company awarded 1,000 restricted shares, 5,000 nonperformance-based stock options and 5,000 performance-based stock options.

Stock based compensation expense is measured based upon the fair market value of the award at the grant date and is recognized ratably over the period during which the shares are earned (the requisite service period). For the nine months ended September 30, 2014 and 2013, approximately $259 and $241, respectively, was recognized in the accompanying consolidated statements of income. As of September 30, 2014, there was approximately $1,733 of unrecognized compensation expense related to non-vested share-based compensation awards that is expected to be recognized over the remaining requisite service periods of the options granted.

2014 Omnibus Incentive Plan

In September of 2014, the Company adopted an omnibus incentive plan or the 2014 Omnibus Plan (Omnibus Plan). The purpose of the Omnibus Plan is to align the long-term financial interests of our employees, directors, consultants and other service providers with those of our shareholders, to attract and retain those employees, directors, consultants and other service providers by providing compensation opportunities that are competitive with other companies and to provide incentives to those individuals who contribute significantly to our long-term performance and growth. To accomplish these goals, the Omnibus Plan permits the issuance of stock options, share appreciation rights, restricted shares, restricted share units, deferred shares, unrestricted shares and cash-based awards. The maximum number of shares of our common stock that may be issued pursuant to grants or options under the Omnibus Plan is 1,000,000. As of September 30, 2014, no options, shares, or rights of any type had been issued under the Omnibus Plan.

The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions used for the awards granted during the nine months ended September 30, 2014:

		September 30, 2014
Dividend yield		0.00%
Expected life		10 years
Expected volatility		5.60%
Risk-free interest rate		2.54% to 2.71%

The expected life is based on the expected amount of time that options granted are expected to be outstanding. The dividend yield assumption is based on the Company’s history. The expected volatility is based on historical volatility of the Company. The risk-free interest rates are based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued.

A summary of option activity under the Incentive Plan as of September 30, 2014 and 2013, and changes during the nine month periods then ended is presented below:

2014

Nonperformance-based stock options

Performance-based stock options

Shares
Underlying
Options

Weighted
Exercise
Price

Weighted
Average
Contractual
Term

Shares
Underlying
Options

Weighted
Average
Exercise
Price

Weighted
Average
Contractual
Term

Outstanding at beginning of period

327,500

10.03

7.69 years

422,500

10.02

8.0 years

Granted during the period

30,000

11.86

50,000

11.19

Forfeited during the period

5,000

10.85

5,000

10.85

Exercised during the period

—

Outstanding at the end of period

352,500

10.14

6.69 years

467,500

10.14

6.82 years

Options exercisable at end of period

186,700

10.04

6.60 years

—

Weighted average fair value of options granted during the period

1.95

2.02

	2013
	Nonperformance-based stock options				Performance-based stock options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Contractual Term
Outstanding at beginning of period	332,500	$	10.00	8.18 years	432,500	$	10.00	8.0 years
Granted during the period	5,000	10.85			5,000	10.85
Forfeited during the period	15,000	—			20,000	10.00
Exercised during the period	—	—			—	—
Outstanding at the end of period	322,500	$	10.01	7.57 years	417,500	$	10.01	7.52 years
Options exercisable at end of period	114,200	$	10.00	7.42 years	—	$	—	—
Weighted average fair value of options granted during the period		$	2.41			$	2.41

As of September 30, 2014 and 2013, the aggregate intrinsic value was $973 and $271, respectively, for outstanding nonperformance-based stock options and $533 and $97, respectively, for exercisable nonperformance-based stock options.

As of September 30, 2014 and 2013, the aggregate intrinsic value was $1.3 million and $351, respectively, for outstanding performance-based stock options. No performance-based stock options were exercisable as of September 30, 2014 and 2013.

As of September 30, 2014 there was $1,406 of total unrecognized compensation expense related to nonvested option shares, of which $298 was related to the nonperformance-based stock options. The nonperformance-based stock option cost is expected to be recognized over the remaining weighted average requisite service period of 1.85 years. Expense associated with the performance-based stock options is based on the probability of future changes in control and other market conditions. During 2013, management determined that one performance condition had been met and expensed a portion of the performance-based option cost. Total unrecognized compensation expense related to these performance-based options as of September 30, 2014 was approximately $388 and is expected to be recognized over the remaining weighted average requisite service period of 6.26 years. Management does not anticipate meeting the other market conditions in the foreseeable future; therefore no performance-based stock option expense related to these conditions was recorded for the nine months ending September 30, 2014

A summary of the status of the Company’s restricted shares as of September 30, 2014 and 2013, and changes during the periods then ended is as follows:

	2014			2013
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1,	35,000	$	10.02	40,000	$	10.00
Granted	28,500	11.93		1,000	10.85
Vested	—	—		—	—
Forfeited	1,250	10.85		6,000	10.00
Nonvested at September 30,	62,250	$	10.87	35,000	$	10.02

As of September 30, 2014, there was $326 of total unrecognized compensation expense related to nonvested restricted shares. The compensation expense is expected to be recognized over the remaining weighted average requisite service period of 1.88 years.

Significant Concentrations of Credit Risk	9 Months Ended
Significant Concentrations of Credit Risk	Sep. 30, 2014
Significant Concentrations of Credit Risk
Significant Concentrations of Credit Risk	11. Significant Concentrations of Credit Risk Most of the Company’s business activity is with customers located within the Dallas metropolitan area. Such customers are normally also depositors of the Company. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Commercial and standby letters of credit were granted primarily to commercial borrowers. The contractual amounts of credit related financial instruments such as commitments to extend credit, credit card arrangements, and letters of credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless.

Preferred Stock	9 Months Ended
Preferred Stock	Sep. 30, 2014
Preferred Stock
Preferred Stock	12. Preferred Stock On August 25, 2011 the Company entered into a Small Business Lending Fund-Securities Purchase Agreement (SBLF Purchase Agreement) with the Secretary of the Treasury, pursuant to which the Company (i) sold 8,000 shares of the Company’s Senior Non-Cumulative Perpetual Preferred Stock, Series C (the SBLF Preferred Stock) to the Secretary of the Treasury for a purchase price of $8,000. The issuance was pursuant to the SBLF program, a fund established under the Small Business Jobs Act of 2010 that was created to encourage lending to small business by providing capital to qualified community banks. The SBLF Preferred Stock qualifies as Tier 1 capital and pays non-cumulative dividends quarterly, on each January 1, April 1, July 1 and October 1. The dividend rate, as a percentage of the liquidation amount, can fluctuate on a quarterly basis during the first 10 quarters during which the SBLF Preferred Stock is outstanding, based upon changes in the level of “Qualified Small Business Lending” or “QBSL” (as defined in the SBLF Purchase Agreement) by the Bank. Based upon the increase in the Bank’s level of QBSL over the baseline level calculated under the terms of the SBLF Purchase Agreement, the dividend rate for the initial dividend period for the Company was set at 1.00%. For the tenth calendar quarter through four and one half years after issuance, the dividend rate will be fixed and as of September 30, 2014 was set at one percent (1%) based upon the increase in QBSL as compared to the baseline. After four and one half years from issuance, the dividend rate will increase to 9% (including a quarterly lending incentive fee of 0.5%). The SBLF Preferred Stock is non-voting, except in limited circumstances. In the event that the Company misses five dividend payments, whether or not consecutive, the holder of the SBLF Preferred Stock will have the right, but not the obligation, to appoint a representative as an observer on the Company’s Board of Directors. The right expires when full dividends have been paid for four consecutive dividend periods. The SBLF Preferred Stock may be redeemed at any time at the Company’s option, at a redemption price of 100% of the liquidation amount plus accrued but unpaid dividends to the date of redemption for the current period, subject to the approval of its federal banking regulator.

Capital Requirements and Restrictions on Retained Earnings

9 Months Ended

Sep. 30, 2014

Capital Requirements and Restrictions on Retained Earnings

Capital Requirements and Restrictions on Retained Earnings

13. Capital Requirements and Restrictions on Retained Earnings

Under banking law, there are legal restrictions limiting the amount of dividends the Company can declare. Approval of the regulatory authorities is required if the effect of the dividends declared would cause regulatory capital of the Company to fall below specified minimum levels.

The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of September 30, 2014 and December 31, 2013, that the Company and the Bank met all capital adequacy requirements to which it was subject.

As of September 30, 2014 and December 31, 2013 the Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized” the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since September 30, 2014 that management believes have changed the Bank’s category.

A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios is presented in the following table:

Actual

For Capital
Adequacy Purposes

To Be Well
Capitalized Under
Prompt Corrective
Action Provisions

Amount

Ratio

Amount

Ratio

Amount

Ratio

As September 30, 2014:

Total capital (to risk weighted assets)

Company

69,388

11.90% ≥

46,640 ≥

8.0% ≥

N/A ≥

N/A

Bank

67,458

11.59% ≥

46,550 ≥

8.0% ≥

58,187 ≥

10.0

Tier 1 capital (to risk weighted assets)

Company

58,528

10.04% ≥

23,320 ≥

4.0% ≥

N/A ≥

N/A

Bank

61,578

10.58% ≥

23,275 ≥

4.0% ≥

34,912 ≥

6.0

Tier 1 capital (to average assets)

Company

58,528

8.28% ≥

28,290 ≥

4.0% ≥

N/A ≥

N/A

Bank

61,578

8.71% ≥

28,276 ≥

4.0% ≥

35,346 ≥

5.0

As of December 31, 2013:

Total capital (to risk weighted assets)

Company

59,100

11.74% ≥

40,288 ≥

8.0% ≥

N/A ≥

N/A

Bank

57,275

11.37% ≥

40,296 ≥

8.0% ≥

38,817 ≥

10.0

Tier 1 capital (to risk weighted assets)

Company

49,103

9.75% ≥

20,144 ≥

4.0% ≥

N/A ≥

N/A

Bank

52,257

10.37% ≥

20,148 ≥

4.0% ≥

23,290 ≥

6.0

Tier 1 capital (to average assets)

Company

49,103

8.06% ≥

24,373 ≥

4.0% ≥

N/A ≥

N/A

Bank

52,257

8.58% ≥

24,369 ≥

4.0% ≥

24,762 ≥

5.0

- Definition

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1G
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958577-112826

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1C
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958572-112826

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1E
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958574-112826

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1H
-URI http://asc.fasb.org/extlink&oid=35709795&loc=d3e65071-112826

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958569-112826

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958570-112826

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1F
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958575-112826

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958568-112826

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1D
-URI http://asc.fasb.org/extlink&oid=35709795&loc=SL5958573-112826

+ Details

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2014
Subsequent Events
Subsequent Events	14. Subsequent Events During October 2014, The Company completed an initial public offering issuing 3,105,000 shares of common stock, par value $0.01 per share, at a purchase price of $13.00 per share for gross proceeds of $40.4 million. Net proceeds after underwriting discounts and expenses were approximately $35.7 million. The Company has retained the net proceeds from this offering at our holding company and intends to use such proceeds to support our continued growth, including organic growth and potential future acquisitions, and for general corporate purposes.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2014

Summary of Significant Accounting Policies

Organization and Basis of Presentation

Earnings Per Share

	Three months Ended September 30,				Nine months Ended September 30,
	2014		2013		2014		2013
Earnings (numerator)
Net income for common stockholders	$	1,359	$	952	$	3,516	$	2,412
Less: preferred stock dividends	20		—		60		40
Net income allocated to common stockholders	$	1,339	$	952	$	3,456	$	2,372
Shares (denominator)
Weighted average shares outstanding for basic EPS (thousands)	6,322		5,803		6,262		5,782
Dilutive effect of employee stock based awards and warrants	141		60		133		62
Adjusted weighted average shares outstanding	6,463		5,863		6,395		5,844
Earnings per share:
Basic	$	0.21	$	0.16	$	0.55	$	0.41
Diluted	$	0.21	$	0.16	$	0.54	$	0.41

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2014

Summary of Significant Accounting Policies

Schedule of reconciliation between weighted average shares used for calculating basic and diluted EPS

	Three months Ended September 30,				Nine months Ended September 30,
	2014		2013		2014		2013
Earnings (numerator)
Net income for common stockholders	$	1,359	$	952	$	3,516	$	2,412
Less: preferred stock dividends	20		—		60		40
Net income allocated to common stockholders	$	1,339	$	952	$	3,456	$	2,372
Shares (denominator)
Weighted average shares outstanding for basic EPS (thousands)	6,322		5,803		6,262		5,782
Dilutive effect of employee stock based awards and warrants	141		60		133		62
Adjusted weighted average shares outstanding	6,463		5,863		6,395		5,844
Earnings per share:
Basic	$	0.21	$	0.16	$	0.55	$	0.41
Diluted	$	0.21	$	0.16	$	0.54	$	0.41

Investment Securities (Tables)

9 Months Ended

Sep. 30, 2014

Investment Securities

Schedule of carrying amount and approximate fair values of available-for-sale securities

September 30, 2014

Amortized
Cost

Gross
Unrealized
Gains

Gross
Unrealized
Losses

Fair
Value

Available for Sale

U.S. government agencies

1,929

—

1,857

Corporate bonds

500

—

501

Municipal securities

957

—

990

Mortgage-backed securities

30,246

225

103

30,368

Collateralized mortgage obligations

12,493

127

12,565

Asset-backed securities

1,191

—

1,216

47,316

411

230

47,497

	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for Sale
U.S. government agencies	$	2,019	$	—	$	95	$	1,924
Corporate bonds	1,445		35		—		1,480
Municipal securities	934		24		—		958
Mortgage-backed securities	24,898		220		187		24,931
Collateralized mortgage obligations	14,898		158		141		14,915
Asset-backed securities	1,370		26		—		1,396
	$	45,564	$	463	$	423	$	45,604

Schedule of investment securities that have been in a continuous unrealized loss position

	September 30, 2014
	Less Than 12 Months				12 Months or More				Totals
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Available for Sale
U.S. government agencies	$	—	$	—	$	1,857	$	72	$	1,857	$	72
Mortgage-backed securities	10,472		34		7,480		69		17,952		103
Collateralized mortgage obligations	5,439		47		878		8		6,317		55
	$	15,911	$	81	$	10,215	$	149	$	26,126	$	230

	December 31, 2013
	Less Than 12 Months				12 Months or More				Totals
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Available for Sale
U.S. government agencies	$	1,924	$	95	$	—	$	—	$	1,924	$	95
Mortgage-backed securities	10,612		187		—		—		10,612		187
Collateralized mortgage obligations	10,222		140		46		1		10,268		141
	$	22,758	$	422	$	46	$	1	$	22,804	$	423

Schedule of amortized costs and estimated fair values of securities available for sale, by contractual maturity

	September 30, 2014
	Available For Sale
	Amortized Cost		Fair Value
Due in one year or less	$	500	$	501
Due from one year to five years	1,457		1,477
Due from five years to ten years	1,429		1,370
Due after ten years	—		—
	3,386		3,348
Mortgage-backed securities	30,246		30,368
Collateralized mortgage obligations	12,493		12,565
Asset-backed securities	1,191		1,216
	$	47,316	$	47,497

	December 31, 2013
	Available For Sale
	Amortized Cost		Fair Value
Due in one year or less	$	—	$	—
Due from one year to five years	2,379		2,438
Due from five years to ten years	2,019		1,924
Due after ten years	—		—
	4,398		4,362
Mortgage-backed securities	24,898		24,931
Collateralized mortgage obligations	14,898		14,915
Asset-backed securities	1,370		1,396
	$	45,564	$	45,604

Schedule of proceeds from sales of investment securities available for sale and gross gains and losses

	September 30, 2014		September 30, 2013
Proceeds from sales	$	981	—
Gross realized gains	34		—
Gross realized losses	—		—

Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2014

Loans and Allowance for Loan Losses

Summary of loans

	September 30, 2014			December 31, 2013
Real estate:
Construction and land	$	66,626		$	47,643
Farmland	11,643			11,656
1 - 4 family residential	99,261			86,908
Multi-family residential	16,272			11,862
Nonfarm nonresidential	188,209			171,451
Commercial	195,073			160,823
Consumer	4,254			4,927
	581,338			495,270
Deferred loan fees	(60		)	(94		)
Allowance for loan losses	(5,880		)	(5,018		)
	$	575,398		$	490,158

Schedule of non-accrual loans, excluding purchased credit impaired loans, aggregated by class of loans

	September 30, 2014		December 31, 2013
Real estate:
Construction and land	$	76	$	76
Farmland	—		—
1 - 4 family residential	—		1,041
Multi-family residential	—		—
Nonfarm nonresidential	369		—
Commercial	—		—
Consumer	—		—
	$	445	$	1,117

Schedule of age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans

	September 30, 2014
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due and Still Accruing
Real estate:
Construction and land	$	—	$	—	$	76	$	76	$	66,550	$	66,626	$	—
Farmland	—		—		—		—		11,643		11,643		—
1 - 4 family residential	299		—		—		299		98,962		99,261		—
Multi-family residential	—		—		—		—		16,272		16,272		—
Nonfarm nonresidential	—		—		—		—		188,209		188,209		—
Commercial	598		36		3		637		194,436		195,073		3
Consumer	34		—		—		34		4,220		4,254		—
	$	931	$	36	$	79	$	1,046	$	580,292	$	581,338	$	3

	December 31, 2013
	30 to 59 Days		60 to 89 Days		90 Days or Greater		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due and Still Accruing
Real estate:
Construction and land	$	19	$	—	$	76	$	95	$	47,548	$	47,643	$	—
Farmland	—		—		—		—		11,656		11,656		—
1 - 4 family residential	168		—		1,041		1,209		85,699		86,908		—
Multi-family residential	—		—		—		—		11,862		11,862		—
Nonfarm nonresidential	—		—		—		—		171,451		171,451		—
Commercial	94		—		—		94		160,729		160,823		—
Consumer	34		9		9		52		4,875		4,927		9
	$	315	$	9	$	1,126	$	1,450	$	493,820	$	495,270	$	9

Summary of impaired loans, including purchased credit impaired loans

	September 30, 2014
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment During Year
Real estate:
Construction and land	$	895	$	76	$	541	$	617	$	34	$	629
Farmland	—		—		—		—		—		—
1 - 4 family residential	169		169		—		169		—		218
Multi-family residential	—		—		—		—		—		—
Nonfarm nonresidential	1,084		1,084		—		1,084		—		944
Commercial	525		253		272		525		178		346
Consumer	42		5		37		42		13		44
Total	$	2,715	$	1,587	$	850	$	2,437	$	225	$	2,181

	December 31, 2013
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment During Year
Real estate:
Construction and land	$	971	$	645	$	—	$	645	$	—	$	871
Farmland	—		—		—		—		—		—
1 - 4 family residential	1,212		1,212		—		1,212		—		1,306
Multi-family residential	—		—		—		—		—		—
Nonfarm nonresidential	1,900		1,900		—		1,900		—		1,462
Commercial	366		366		—		366		—		366
Consumer	32		32		—		32		—		28
Total	$	4,481	$	4,155	$	—	$	4,155	$	—	$	4,033

Schedule of terms of certain loans that were modified as troubled debt restructurings

				During the nine months ended September 30, 2013
				Post-Modification Outstanding Recorded Investment
	Number of Loans	Pre- Modification Outstanding Recorded Investment		Adjusted Interest Rate		Extended Maturity		Extended Maturity and Restructured Payments		Extended Maturity, Restructured Payments and Adjusted Interest Rate
Real estate loans:
Construction and land	—	$	—	$	—	$	—	$	—	$	—
Farmland	—	—		—		—		—		—
1 - 4 family residential	1	1,032		—		1,032		—		—
Multi-family residential	—	—		—		—		—		—
Nonfarm nonresidential	1	1,180		—		1,180		—		—
Commercial	—	—		—		—		—		—
Consumer	—	—		—		—		—		—
Total	2	$	2,212	$	—	$	2,212	$	—	$	—

Summary of internal ratings of loans, including purchased credit impaired loans

	September 30, 2014
	Pass		Special Mention		Substandard		Doubtful		Total
Real estate:
Construction and land	$	66,009	$	—	$	617	$	—	$	66,626
Farmland	11,643		—		—		—		11,643
1 - 4 family residential	99,221		—		40		—		99,261
Multi-family residential	16,272		—		—		—		16,272
Nonfarm nonresidential	187,840		—		369		—		188,209
Commercial	192,660		689		1,724		—		195,073
Consumer	4,051		—		203		—		4,254
Total	$	577,696	$	689	$	2,953	$	—	$	581,338

	December 31, 2013
	Pass		Special Mention		Substandard		Doubtful		Total
Real estate:
Construction and land	$	46,998	$	—	$	645	$	—	$	47,643
Farmland	11,656		—		—		—		11,656
1 - 4 family residential	85,649		—		1,259		—		86,908
Multi-family residential	11,862		—		—		—		11,862
Nonfarm nonresidential	171,371		—		80		—		171,451
Commercial	158,919		731		1,173		—		160,823
Consumer	4,878		7		42		—		4,927
Total	$	491,333	$	738	$	3,199	$	—	$	495,270

Schedule of analysis of the allowance for loan losses

	Nine Months Ended September 30, 2014			Twelve Months Ended December 31, 2013			Nine Months Ended September 30, 2013
Balance at beginning of year	$	5,018		$	3,238		$	3,238
Provision charged to earnings	1,097			1,883			1,383
Charge-offs	(266		)	(240		)	(218		)
Recoveries	31			137			120
Net charge-offs	(235		)	(103		)	(98		)
Balance at end of period	$	5,880		$	5,018		$	4,523

Summary of activity in the allowance for loan losses by class of loans

	September 30, 2014
	Real Estate
	Construction Land and Farmland			Residential			Nonfarm Non- Residential		Commercial			Consumer			Total
Balance at beginning of year	$	660		$	970		$	1,726	$	1,585		$	77		$	5,018
Provision charged to earnings	146			247			82		632			(10		)	1,097
Charge-offs	(28		)	(30		)	—		(205		)	(3		)	(266		)
Recoveries	—			—			2		27			2			31
Net charge-offs	(28		)	(30		)	2		(178		)	(1		)	(235		)
Balance at end of period	$	778		$	1,187		$	1,810	$	2,039		$	66		$	5,880
Period-end amount allocated to:
Specific Reserves:
Impaired loans	$	—		$	—		$	—	$	178		$	13		$	191
Purchased credit impaired loans	34			—			—		—			—			34
Total specific reserves	34			—			—		178			13			225
General reserves	744			1,187			1,810		1,861			53			5,655
Total	$	778		$	1,187		$	1,810	$	2,039		$	66		$	5,880

	December 31, 2013
	Real Estate
	Construction Land and Farmland		Residential			Nonfarm Non- Residential		Commercial			Consumer			Total
Balance at beginning of year	$	455	$	755		$	1,028	$	947		$	53		$	3,238
Provision charged to earnings	205		240			698		716			24			1,883
Charge-offs	—		(85		)	—		(110		)	(45		)	(240		)
Recoveries	—		60			—		32			45			137
Net charge-offs	—		(25		)	—		(78		)	—			(103		)
Balance at end of year	$	660	$	970		$	1,726	$	1,585		$	77		$	5,018
Period-end amount allocated to:
Specific Reserves:
Impaired loans	$	—	$	—		$	—	$	—		$	—		$	—
Purchased credit impaired loans	—		—			—		—			—			—
Total specific reserves	—		—			—		—			—			—
General reserves	660		970			1,726		1,585			77			5,018
Total	$	660	$	970		$	1,726	$	1,585		$	77		$	5,018

	September 30, 2013
	Real Estate
	Construction Land and Farmland		Residential			Nonfarm Non- Residential		Commercial			Consumer			Total
Balance at beginning of year	$	455	$	755		$	1,028	$	947		$	53		$	3,238
Provision charged to earnings	39		250			555		501			38			1,383
Charge-offs	—		(85		)	—		(90		)	(43		)	(218		)
Recoveries	—		60			—		29			31			120
Net charge-offs	—		(25		)	—		(61		)	(12		)	(98		)
Balance at end of period	$	494	$	980		$	1,583	$	1,387		$	79		$	4,523
Period-end amount allocated to:
Specific Reserves:
Impaired loans	$	—	$	—		$	—	$	—		$	—		$	—
Purchased credit impaired loans	—		—			—		—			—			—
Total specific reserves	—		—			—		—			—			—
General reserves	494		980			1,583		1,387			79			4,523
Total	$	494	$	980		$	1,583	$	1,387		$	79		$	4,523

Schedule of recorded investment in loans related to the balance in the allowance for loan losses on the basis of the Company's impairment methodology

September 30, 2014

Real Estate

Construction
Land and
Farmland

Residential

Nonfarm Non-
Residential

Commercial

Consumer

Total

Loans individually evaluated for impairment

617

169

1,084

525

2,437

Loans collectively evaluated for impairment

77,652

115,364

187,125

194,548

4,212

578,901

Total

78,269

115,533

188,209

195,073

4,254

581,338

	December 31, 2013
	Real Estate
	Construction Land and Farmland		Residential		Nonfarm Non- Residential		Commercial		Consumer		Total
Loans individually evaluated for impairment	$	645	$	1,212	$	1,900	$	366	$	32	$	4,155
Loans collectively evaluated for impairment	58,654		97,558		169,551		160,457		4,895		491,115
Total	$	59,299	$	98,770	$	171,451	$	160,823	$	4,927	$	495,270

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2014

Income Taxes

Schedule of income tax expense and the effective tax rates

	Nine months ended September 30,
	2014			2013
Income tax expense:	$	1,913		$	1,266
Effective tax rate	35.2		%	34.4		%

Schedule of significant components of the deferred tax assets and liabilities

	September 30, 2014		December 31, 2013
Deferred tax assets:
Net operating loss	$	—	$	96
Organizational costs	175		183
Allowance for loan losses	1,812		1,619
Deferred loan fees	24		32
Non-accrual interest	59		62
Capital loss carryforward	85		85
OREO write down for book purposes	55		55
Deferred rent expenses	62		70
Restricted stock	103		84
Accrued bonuses	162		243
Other	135		134
Total deferred tax assets	2,672		2,663
Deferred tax liabilities:
Net unrealized gain on securities available for sale	62		14
Core deposit intangibles	462		512
FHLB stock dividends	26		26
Bank premises and equipment	993		1,118
Total deferred tax liabilities	1,543		1,670
Net deferred tax asset	$	1,129	$	993

Fair Value Disclosures (Tables)

9 Months Ended

Sep. 30, 2014

Fair Value Disclosures

Schedule of assets measured at fair value on a recurring basis

	Fair Value Measurements Using
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
At September 30, 2014:
Investment securities available for sale	$	—	$	47,497	$	—	$	47,497
At December 31, 2013:
Investment securities available for sale	$	—	$	45,604	$	—	$	45,604

Schedule of assets measured at fair value on a non-recurring basis

	Fair Value Measurements Using								Period
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value		Ended Total Losses
At September 30, 2014:
Assets:
Impaired loans	$	—	$	—	$	2,212	$	2,212	$	225
Other real estate owned	$	—	$	—	$	1,335	$	1,335	$	—
At December 31, 2013:
Assets:
Impaired loans	$	—	$	—	$	4,155	$	4,155	$	—
Other real estate owned	$	—	$	—	$	1,797	$	1,797	$	162

Schedule of significant unobservable inputs used in the fair value measurements

September 30, 2014

Assets/Liabilities	Fair Value		Valuation Technique	Unobservable Input(s)	Weighted Average
Impaired loans	$	2,212	Collateral Method	Adjustments for selling costs	8	%
Other real estate owned	$	1,335	Collateral Method	Adjustments for selling costs	15	%

December 31, 2013

Assets/Liabilities	Fair Value		Valuation Technique	Unobservable Input(s)	Weighted Average
Impaired loans	$	4,155	Collateral Method	Adjustments for selling costs	8	%
Other real estate owned	$	1,797	Collateral Method	Adjustments for selling costs	8	%

Schedule of estimated fair values and carrying values of all financial instruments

	September 30, 2014				December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Level 2 inputs:
Cash and cash equivalents	$	67,733	$	67,733	$	76,646	$	76,646
Securities available for sale	47,497		47,497		45,604		45,604
Loans held for sale	3,488		3,488		2,051		2,051
Accrued interest receivable	1,351		1,351		1,351		1,351
Bank-owned life insurance	10,731		10,731		10,475		10,475
Non-marketable equity securities	3,115		3,115		2,714		2,714
Level 3 inputs:
Loans, net	575,398		574,469		490,158		490,344
Financial liabilities:
Level 2 inputs:
Deposits	$	644,543	$	639,847	$	573,938	$	568,451
Advances from FHLB	15,000		15,028		15,000		15,055
Accrued interest payable	161		161		134		134
Other borrowings	8,073		8,073		8,072		8,072

Financial Instruments with Off-Balance Sheet Risk (Tables)

9 Months Ended

Sep. 30, 2014

Financial Instruments with Off-Balance Sheet Risk

Schedule of the approximate amounts of financial instruments with off-balance sheet risk

	September 30, 2014		December 31, 2013
Commitments to extend credit	$	111,689	$	92,827
Standby letters of credit	867		210
	$	112,556	$	93,037

Employee Benefits (Tables)

9 Months Ended

Sep. 30, 2014

Employee Benefits

Summary of ESOP shares

	September 30, 2014		December 31, 2013
Allocated shares	16,958		7,811
Unearned shares	36,935		—
Total ESOP shares	53,893		7,811
Fair value of unearned shares	$	476	$	—

Stock Incentive Plan (Tables)

9 Months Ended

Sep. 30, 2014

Stock and Incentive Plans

Schedule of assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model

		September 30, 2014
Dividend yield		0.00%
Expected life		10 years
Expected volatility		5.60%
Risk-free interest rate		2.54% to 2.71%

Summary of option activity under the Incentive Plan

2014

Nonperformance-based stock options

Performance-based stock options

Shares
Underlying
Options

Weighted
Exercise
Price

Weighted
Average
Contractual
Term

Shares
Underlying
Options

Weighted
Average
Exercise
Price

Weighted
Average
Contractual
Term

Outstanding at beginning of period

327,500

10.03

7.69 years

422,500

10.02

8.0 years

Granted during the period

30,000

11.86

50,000

11.19

Forfeited during the period

5,000

10.85

5,000

10.85

Exercised during the period

—

Outstanding at the end of period

352,500

10.14

6.69 years

467,500

10.14

6.82 years

Options exercisable at end of period

186,700

10.04

6.60 years

—

Weighted average fair value of options granted during the period

1.95

2.02

	2013
	Nonperformance-based stock options				Performance-based stock options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term	Shares Underlying Options	Weighted Average Exercise Price		Weighted Average Contractual Term
Outstanding at beginning of period	332,500	$	10.00	8.18 years	432,500	$	10.00	8.0 years
Granted during the period	5,000	10.85			5,000	10.85
Forfeited during the period	15,000	—			20,000	10.00
Exercised during the period	—	—			—	—
Outstanding at the end of period	322,500	$	10.01	7.57 years	417,500	$	10.01	7.52 years
Options exercisable at end of period	114,200	$	10.00	7.42 years	—	$	—	—
Weighted average fair value of options granted during the period		$	2.41			$	2.41

Summary of status of the Company's restricted shares

	2014			2013
	Shares	Weighted Average Grant Date Fair Value		Shares	Weighted Average Grant Date Fair Value
Nonvested at January 1,	35,000	$	10.02	40,000	$	10.00
Granted	28,500	11.93		1,000	10.85
Vested	—	—		—	—
Forfeited	1,250	10.85		6,000	10.00
Nonvested at September 30,	62,250	$	10.87	35,000	$	10.02

Capital Requirements and Restrictions on Retained Earnings (Tables)

9 Months Ended

Sep. 30, 2014

Capital Requirements and Restrictions on Retained Earnings

Schedule of comparison of the Company's and Bank's actual capital amounts and ratios to required capital amounts and ratios

Actual

For Capital
Adequacy Purposes

To Be Well
Capitalized Under
Prompt Corrective
Action Provisions

Amount

Ratio

Amount

Ratio

Amount

Ratio

As September 30, 2014:

Total capital (to risk weighted assets)

Company

69,388

11.90% ≥

46,640 ≥

8.0% ≥

N/A ≥

N/A

Bank

67,458

11.59% ≥

46,550 ≥

8.0% ≥

58,187 ≥

10.0

Tier 1 capital (to risk weighted assets)

Company

58,528

10.04% ≥

23,320 ≥

4.0% ≥

N/A ≥

N/A

Bank

61,578

10.58% ≥

23,275 ≥

4.0% ≥

34,912 ≥

6.0

Tier 1 capital (to average assets)

Company

58,528

8.28% ≥

28,290 ≥

4.0% ≥

N/A ≥

N/A

Bank

61,578

8.71% ≥

28,276 ≥

4.0% ≥

35,346 ≥

5.0

As of December 31, 2013:

Total capital (to risk weighted assets)

Company

59,100

11.74% ≥

40,288 ≥

8.0% ≥

N/A ≥

N/A

Bank

57,275

11.37% ≥

40,296 ≥

8.0% ≥

38,817 ≥

10.0

Tier 1 capital (to risk weighted assets)

Company

49,103

9.75% ≥

20,144 ≥

4.0% ≥

N/A ≥

N/A

Bank

52,257

10.37% ≥

20,148 ≥

4.0% ≥

23,290 ≥

6.0

Tier 1 capital (to average assets)

Company

49,103

8.06% ≥

24,373 ≥

4.0% ≥

N/A ≥

N/A

Bank

52,257

8.58% ≥

24,369 ≥

4.0% ≥

24,762 ≥

5.0

Summary of Significant Accounting Policies (Details)	9 Months Ended
Summary of Significant Accounting Policies (Details)	Sep. 30, 2014 item
Nature of operations
Number of Branches	8
Number of mortgage office	1
Segment Reporting:
Number of reportable segment	1

Summary of Significant Accounting Policies (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings (numerator)
Net income for common stockholders	$ 1,359	$ 952	$ 3,516	$ 2,412
Less: preferred stock dividends	20		60	40
Net income available to common stockholders	$ 1,339	$ 952	$ 3,456	$ 2,372
Shares (denominator)
Weighted average shares outstanding for basic EPS (thousands)	6,322	5,803	6,262	5,782
Dilutive effect of employee stock based awards and warrants	141	60	133	62
Adjusted weighted average shares outstanding	6,463	5,863	6,395	5,844
Earnings per share:
Basic (in dollars per share)	$ 0.21	$ 0.16	$ 0.55	$ 0.41
Diluted (in dollars per share)	$ 0.21	$ 0.16	$ 0.54	$ 0.41

Summary of Significant Accounting Policies (Details 3) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Performance stock options
Earnings Per Share
Excluded from diluted EPS weighted average shares	468,000	418,000	462,000	423,000

Common Stock and Preferred Stock(Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	9 Months Ended
	Mar. 31, 2014	Jan. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Common Stock and Preferred Stock
Common stock, shares authorized			75,000,000	10,000,000
Common stock, par value (in dollars per share)			$ 0.01	$ 0.01
Preferred stock, shares authorized			10,000,000	500,000
Preferred stock, par value (in dollars per share)			$ 0.01	$ 0.01
Series C preferred stock, shares issued			8,000	8,000
Private offering
Common Stock and Preferred Stock
Maximum number of shares offered		500,000
Shares of common stock issued	490,773		17,274
Common stock, par value (in dollars per share)		$ 0.01
Private offering price (in dollars per share)		$ 10.85	$ 10
Total proceeds from issuance of common stock	$ 5,325		$ 173
Offering costs	$ 60

Investment Securities (Details) $ in Thousands	9 Months Ended	12 Months Ended
Investment Securities (Details) $ in Thousands	Sep. 30, 2014 USD ($) item	Dec. 31, 2013 USD ($)
Available for Sale securities
Amortized Cost	$ 47,316	$ 45,564
Gross Unrealized Gains	411	463
Gross Unrealized Losses	230	423
Fair Value	47,497	45,604
Available for sale investment securities that have been in a continuous unrealized loss position
Less Than 12 Months, Fair Value	15,911	22,758
Less Than 12 Months, Unrealized Loss	81	422
12 Months or More, Fair Value	10,215	46
12 Months or More, Unrealized Loss	149	1
Total Fair Value	26,126	22,804
Total Unrealized Loss	$ 230	423
Number of investment positions in an unrealized loss position \| item	23
U.S. government agencies
Available for Sale securities
Amortized Cost	$ 1,929	2,019
Gross Unrealized Losses	72	95
Fair Value	1,857	1,924
Available for sale investment securities that have been in a continuous unrealized loss position
Less Than 12 Months, Fair Value		1,924
Less Than 12 Months, Unrealized Loss		95
12 Months or More, Fair Value	1,857
12 Months or More, Unrealized Loss	72
Total Fair Value	1,857	1,924
Total Unrealized Loss	72	95
Corporate bonds
Available for Sale securities
Amortized Cost	500	1,445
Gross Unrealized Gains	1	35
Fair Value	501	1,480
Municipal securities
Available for Sale securities
Amortized Cost	957	934
Gross Unrealized Gains	33	24
Fair Value	990	958
Mortgage-backed securities
Available for Sale securities
Amortized Cost	30,246	24,898
Gross Unrealized Gains	225	220
Gross Unrealized Losses	103	187
Fair Value	30,368	24,931
Available for sale investment securities that have been in a continuous unrealized loss position
Less Than 12 Months, Fair Value	10,472	10,612
Less Than 12 Months, Unrealized Loss	34	187
12 Months or More, Fair Value	7,480
12 Months or More, Unrealized Loss	69
Total Fair Value	17,952	10,612
Total Unrealized Loss	103	187
Collateralized mortgage obligations
Available for Sale securities
Amortized Cost	12,493	14,898
Gross Unrealized Gains	127	158
Gross Unrealized Losses	55	141
Fair Value	12,565	14,915
Available for sale investment securities that have been in a continuous unrealized loss position
Less Than 12 Months, Fair Value	5,439	10,222
Less Than 12 Months, Unrealized Loss	47	140
12 Months or More, Fair Value	878	46
12 Months or More, Unrealized Loss	8	1
Total Fair Value	6,317	10,268
Total Unrealized Loss	55	141
Asset-backed securities
Available for Sale securities
Amortized Cost	1,191	1,370
Gross Unrealized Gains	25	26
Fair Value	$ 1,216	$ 1,396

Investment Securities (Details 2) - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
Amortized costs of securities available for sale, by contractual maturity
Due in one year or less	$ 500
Due from one year to five years	1,457	$ 2,379
Due from five years to ten years	1,429	2,019
Total investment securities available for sale, single maturity date	3,386	4,398
Total investment securities available for sale, amortized cost basis	47,316	45,564
Estimated fair values of securities available for sale, by contractual maturity
Due in one year or less	501
Due from one year to five years	1,477	2,438
Due from five years to ten years	1,370	1,924
Total investment securities available for sale	3,348	4,362
Total investment securities available for sale, fair value	47,497	45,604
Mortgage-backed securities
Amortized costs of securities available for sale, by contractual maturity
Amortized Cost	30,246	24,898
Estimated fair values of securities available for sale, by contractual maturity
Fair Value	30,368	24,931
Collateralized mortgage obligations
Amortized costs of securities available for sale, by contractual maturity
Amortized Cost	12,493	14,898
Estimated fair values of securities available for sale, by contractual maturity
Fair Value	12,565	14,915
Asset-backed securities
Amortized costs of securities available for sale, by contractual maturity
Amortized Cost	1,191	1,370
Estimated fair values of securities available for sale, by contractual maturity
Fair Value	$ 1,216	$ 1,396

Investment Securities (Details 3) $ in Thousands	9 Months Ended
Investment Securities (Details 3) $ in Thousands	Sep. 30, 2014 USD ($)
Proceeds from sales of investment securities available for sale and gross gains and losses
Proceeds from sales	$ 981
Gross realized gains	$ 34

Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Dec. 31, 2012
Loans and Allowance for Loan Losses
Loans, gross	$ 581,338	$ 495,270
Deferred loan fees	(60)	(94)
Allowance for loan losses	(5,880)	(5,018)	$ (4,523)	$ (3,238)
Loans, net	575,398	490,158
Accretable discount related to loans acquired within a business combination	198	667
Construction and land
Loans and Allowance for Loan Losses
Loans, gross	66,626	47,643
Farmland
Loans and Allowance for Loan Losses
Loans, gross	11,643	11,656
1 - 4 family residential
Loans and Allowance for Loan Losses
Loans, gross	99,261	86,908
Multi-family residential
Loans and Allowance for Loan Losses
Loans, gross	16,272	11,862
Nonfarm nonresidential
Loans and Allowance for Loan Losses
Loans, gross	188,209	171,451
Allowance for loan losses	(1,810)	(1,726)	(1,583)	(1,028)
Commercial
Loans and Allowance for Loan Losses
Loans, gross	195,073	160,823
Allowance for loan losses	(2,039)	(1,585)	(1,387)	(947)
Consumer
Loans and Allowance for Loan Losses
Loans, gross	4,254	4,927
Allowance for loan losses	$ (66)	$ (77)	$ (79)	$ (53)

Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
Non-Accrual and Past Due Loans
Non-accrual loans, excluding purchased credit impaired loans	$ 445	$ 1,117
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
30-59 Days	931	315
60-89 Days	36	9
90 Days or Greater	79	1,126
Total Past Due	1,046	1,450
Total Current	580,292	493,820
Total Loans	581,338	495,270
Total 90 Days Past Due and Still Accruing	3	9
Construction and land
Non-Accrual and Past Due Loans
Non-accrual loans, excluding purchased credit impaired loans	76	76
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
30-59 Days		19
90 Days or Greater	76	76
Total Past Due	76	95
Total Current	66,550	47,548
Total Loans	66,626	47,643
Farmland
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Current	11,643	11,656
Total Loans	11,643	11,656
1 - 4 family residential
Non-Accrual and Past Due Loans
Non-accrual loans, excluding purchased credit impaired loans		1,041
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
30-59 Days	299	168
90 Days or Greater		1,041
Total Past Due	299	1,209
Total Current	98,962	85,699
Total Loans	99,261	86,908
Multi-family residential
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Current	16,272	11,862
Total Loans	16,272	11,862
Nonfarm nonresidential
Non-Accrual and Past Due Loans
Non-accrual loans, excluding purchased credit impaired loans	369
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Current	188,209	171,451
Total Loans	188,209	171,451
Commercial
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
30-59 Days	598	94
60-89 Days	36
90 Days or Greater	3
Total Past Due	637	94
Total Current	194,436	160,729
Total Loans	195,073	160,823
Total 90 Days Past Due and Still Accruing	3
Consumer
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
30-59 Days	34	34
60-89 Days		9
90 Days or Greater		9
Total Past Due	34	52
Total Current	4,220	4,875
Total Loans	$ 4,254	4,927
Total 90 Days Past Due and Still Accruing		$ 9

Loans and Allowance for Loan Losses (Detail 3) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Impaired Loans
Unpaid Contractual Principal Balance	$ 2,715	$ 4,481
Recorded Investment with No Allowance	1,587	4,155
Recorded Investment with Allowance	850
Total Recorded Investment	2,437	4,155
Related Allowance	225
Average Recorded Investment During Year	2,181	4,033
Construction and land
Impaired Loans
Unpaid Contractual Principal Balance	895	971
Recorded Investment with No Allowance	76	645
Recorded Investment with Allowance	541
Total Recorded Investment	617	645
Related Allowance	34
Average Recorded Investment During Year	629	871
1 - 4 family residential
Impaired Loans
Unpaid Contractual Principal Balance	169	1,212
Recorded Investment with No Allowance	169	1,212
Total Recorded Investment	169	1,212
Average Recorded Investment During Year	218	1,306
Nonfarm nonresidential
Impaired Loans
Unpaid Contractual Principal Balance	1,084	1,900
Recorded Investment with No Allowance	1,084	1,900
Total Recorded Investment	1,084	1,900
Average Recorded Investment During Year	944	1,462
Commercial
Impaired Loans
Unpaid Contractual Principal Balance	525	366
Recorded Investment with No Allowance	253	366
Recorded Investment with Allowance	272
Total Recorded Investment	525	366
Related Allowance	178
Average Recorded Investment During Year	346	366
Consumer
Impaired Loans
Unpaid Contractual Principal Balance	42	32
Recorded Investment with No Allowance	5	32
Recorded Investment with Allowance	37
Total Recorded Investment	42	32
Related Allowance	13
Average Recorded Investment During Year	$ 44	$ 28

Loans and Allowance for Loan Losses (Detail 4) $ in Thousands	9 Months Ended
	Sep. 30, 2013 USD ($) item	Sep. 30, 2014 USD ($)	Dec. 31, 2013 USD ($)
Loans and Allowance for Loan Losses
Recorded investment in TDRs		$ 1,694	$ 4,078
Troubled Debt Restructuring
Number of Loans \| item	2
Pre-Modification Outstanding Recorded Investment	$ 2,212
Post-Modification Outstanding Recorded Investment
Extended Maturity	$ 2,212
Number of loans restructured performing as agreed to modified terms \| item	2
Number of loans modified as a troubled debt restructured loan within previous 12 months and for which there was a payment default \| item	1
Period of time payment is past due for trouble debt restructuring to be default.	90 days
1 - 4 family residential
Troubled Debt Restructuring
Number of Loans \| item	1
Pre-Modification Outstanding Recorded Investment	$ 1,032
Post-Modification Outstanding Recorded Investment
Extended Maturity	$ 1,032
Nonfarm nonresidential
Troubled Debt Restructuring
Number of Loans \| item	1
Pre-Modification Outstanding Recorded Investment	$ 1,180
Post-Modification Outstanding Recorded Investment
Extended Maturity	$ 1,180

Loans and Allowance for Loan Losses (Detail 5) $ in Thousands	9 Months Ended
	Sep. 30, 2014 USD ($) item	Dec. 31, 2013 USD ($)
Loans and Allowance for Loan Losses
Number of categories into which loan is classified from credit risk standpoint \| item	4
Credit Quality Indicators
Loans	$ 581,338	$ 495,270
Pass
Credit Quality Indicators
Loans	577,696	491,333
Special Mention
Credit Quality Indicators
Loans	689	738
Substandard
Credit Quality Indicators
Loans	2,953	3,199
Construction and land
Credit Quality Indicators
Loans	66,626	47,643
Construction and land \| Pass
Credit Quality Indicators
Loans	66,009	46,998
Construction and land \| Substandard
Credit Quality Indicators
Loans	617	645
Farmland
Credit Quality Indicators
Loans	11,643	11,656
Farmland \| Pass
Credit Quality Indicators
Loans	11,643	11,656
1 - 4 family residential
Credit Quality Indicators
Loans	99,261	86,908
1 - 4 family residential \| Pass
Credit Quality Indicators
Loans	99,221	85,649
1 - 4 family residential \| Substandard
Credit Quality Indicators
Loans	40	1,259
Multi-family residential
Credit Quality Indicators
Loans	16,272	11,862
Multi-family residential \| Pass
Credit Quality Indicators
Loans	16,272	11,862
Nonfarm nonresidential
Credit Quality Indicators
Loans	188,209	171,451
Nonfarm nonresidential \| Pass
Credit Quality Indicators
Loans	187,840	171,371
Nonfarm nonresidential \| Substandard
Credit Quality Indicators
Loans	369	80
Commercial
Credit Quality Indicators
Loans	195,073	160,823
Commercial \| Pass
Credit Quality Indicators
Loans	192,660	158,919
Commercial \| Special Mention
Credit Quality Indicators
Loans	689	731
Commercial \| Substandard
Credit Quality Indicators
Loans	1,724	1,173
Consumer
Credit Quality Indicators
Loans	4,254	4,927
Consumer \| Pass
Credit Quality Indicators
Loans	4,051	4,878
Consumer \| Special Mention
Credit Quality Indicators
Loans		7
Consumer \| Substandard
Credit Quality Indicators
Loans	$ 203	$ 42

Loans and Allowance for Loan Losses (Detail 6) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Analysis of allowance for loan losses
Balance at beginning of year	$ 5,018	$ 3,238	$ 3,238
Provision charged to earnings	1,097	1,383	1,883
Charge-offs	(266)	(218)	(240)
Recoveries	31	120	137
Net charge-offs	(235)	(98)	(103)
Balance at end of period	5,880	4,523	5,018
Specific Reserves:
Impaired loans				$ 191
Purchased credit impaired loans				34
Total specific reserves				225
General reserves				5,655	$ 5,018	$ 4,523
Total	5,880	3,238	5,018	5,880	5,018	4,523
Recorded investment in loans related to balance in allowance for loan losses on basis of impairment methodology
Loans individually evaluated for impairment				2,437	4,155
Loans collectively evaluated for impairment				578,901	491,115
Total Loans				581,338	495,270
Construction land and Farmland
Analysis of allowance for loan losses
Balance at beginning of year	660	455	455
Provision charged to earnings	146	39	205
Charge-offs	(28)
Net charge-offs	(28)
Balance at end of period	778	494	660
Specific Reserves:
Purchased credit impaired loans				34
Total specific reserves				34
General reserves				744	660	494
Total	660	455	660	778	660	494
Recorded investment in loans related to balance in allowance for loan losses on basis of impairment methodology
Loans individually evaluated for impairment				617	645
Loans collectively evaluated for impairment				77,652	58,654
Total Loans				78,269	59,299
Residential
Analysis of allowance for loan losses
Balance at beginning of year	970	755	755
Provision charged to earnings	247	250	240
Charge-offs	(30)	(85)	(85)
Recoveries		60	60
Net charge-offs	(30)	(25)	(25)
Balance at end of period	1,187	980	970
Specific Reserves:
General reserves				1,187	970	980
Total	970	755	970	1,187	970	980
Recorded investment in loans related to balance in allowance for loan losses on basis of impairment methodology
Loans individually evaluated for impairment				169	1,212
Loans collectively evaluated for impairment				115,364	97,558
Total Loans				115,533	98,770
Nonfarm Non-Residential
Analysis of allowance for loan losses
Balance at beginning of year	1,726	1,028	1,028
Provision charged to earnings	82	555	698
Recoveries	2
Net charge-offs	2
Balance at end of period	1,810	1,583	1,726
Specific Reserves:
General reserves				1,810	1,726	1,583
Total	1,726	1,028	1,726	1,810	1,726	1,583
Recorded investment in loans related to balance in allowance for loan losses on basis of impairment methodology
Loans individually evaluated for impairment				1,084	1,900
Loans collectively evaluated for impairment				187,125	169,551
Total Loans				188,209	171,451
Commercial
Analysis of allowance for loan losses
Balance at beginning of year	1,585	947	947
Provision charged to earnings	632	501	716
Charge-offs	(205)	(90)	(110)
Recoveries	27	29	32
Net charge-offs	(178)	(61)	(78)
Balance at end of period	2,039	1,387	1,585
Specific Reserves:
Impaired loans				178
Total specific reserves				178
General reserves				1,861	1,585	1,387
Total	1,585	947	1,585	2,039	1,585	1,387
Recorded investment in loans related to balance in allowance for loan losses on basis of impairment methodology
Loans individually evaluated for impairment				525	366
Loans collectively evaluated for impairment				194,548	160,457
Total Loans				195,073	160,823
Consumer
Analysis of allowance for loan losses
Balance at beginning of year	77	53	53
Provision charged to earnings	(10)	38	24
Charge-offs	(3)	(43)	(45)
Recoveries	2	31	45
Net charge-offs	(1)	(12)
Balance at end of period	66	79	77
Specific Reserves:
Impaired loans				13
Total specific reserves				13
General reserves				53	77	79
Total	$ 77	$ 53	$ 77	66	77	$ 79
Recorded investment in loans related to balance in allowance for loan losses on basis of impairment methodology
Loans individually evaluated for impairment				42	32
Loans collectively evaluated for impairment				4,212	4,895
Total Loans				$ 4,254	$ 4,927

Loans and Allowance for Loan Losses (Detail 7) - USD ($)	Sep. 30, 2014	Dec. 31, 2013
Loans and Allowance for Loan Losses
Carrying amount	$ 541,000	$ 569,000

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Income Taxes
Income tax expense:	$ 723	$ 492	$ 1,913	$ 1,266
Effective tax rate (as a percent)			35.20%	34.40%
Statutory rate (as a percent)			34.00%
Deferred tax assets:
Net operating loss					$ 96
Organizational costs	175		$ 175		183
Allowance for loan losses	1,812		1,812		1,619
Deferred loan fees	24		24		32
Non-accrual interest	59		59		62
Capital loss carryforward	85		85		85
OREO write down for book purposes	55		55		55
Deferred rent expenses	62		62		70
Restricted stock	103		103		84
Accrued bonuses	162		162		243
Other	135		135		134
Total deferred tax assets	2,672		2,672		2,663
Deferred tax liabilities:
Net unrealized gain on securities available for sale	62		62		14
Core deposit intangibles	462		462		512
FHLB stock dividends	26		26		26
Bank premises and equipment	993		993		1,118
Total deferred tax liabilities	1,543		1,543		1,670
Net deferred tax asset	$ 1,129		$ 1,129		$ 993

Income Taxes (Details 2) - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
Amount included in consolidated balance sheets
Net deferred tax asset	$ 1,129	$ 993
Other assets
Amount included in consolidated balance sheets
Current tax receivable	183	292
Net deferred tax asset	$ 1,129	$ 993

Commitments and Contingencies (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Operating Leases
Rental expense on operating lease	$ 1,105	$ 999

Fair Value Disclosures (Details) - USD ($) $ in Thousands	9 Months Ended
Fair Value Disclosures (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Assets measured at fair value
Investment securities available for sale	$ 47,497		$ 45,604
Impaired loans	2,437		4,155
Other real estate owned	1,434		1,797
Recurring
Assets measured at fair value
Investment securities available for sale	47,497		45,604
Liabilities measured at fair value	0		0
Transfer of assets from Level 2 to Level 3	0	$ 0
Transfer of assets from Level 3 to Level 2	0	$ 0
Recurring \| Level 2 Inputs
Assets measured at fair value
Investment securities available for sale	47,497		45,604
Non-recurring
Assets measured at fair value
Impaired loans	2,212		4,155
Other real estate owned	1,335		1,797
Liabilities measured at fair value	0		0
Non-recurring \| Period Ended Total Losses
Assets measured at fair value
Impaired loans	225
Other real estate owned			162
Non-recurring \| Level 3 Inputs
Assets measured at fair value
Impaired loans	2,212		4,155
Other real estate owned	$ 1,335		$ 1,797

Fair Value Disclosures (Details 2) - Collateral Method - Level 3 Inputs - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Impaired loans
Significant unobservable inputs used in the fair value measurements
Fair Value	$ 2,212	$ 4,155
Weighted Average (as a percent)	8.00%	8.00%
Other real estate owned, net
Significant unobservable inputs used in the fair value measurements
Fair Value	$ 1,335	$ 1,797
Weighted Average (as a percent)	15.00%	8.00%

Fair Value Disclosures (Details 3) - USD ($) $ in Thousands	9 Months Ended
Fair Value Disclosures (Details 3) - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
Fair Value Disclosures
Maximum maturity period for Federal Home Loan Bank advances recorded at carrying value	90 days
Financial assets:
Securities available for sale	$ 47,497	$ 45,604
Level 2 Inputs \| Carrying Amount
Financial assets:
Cash and cash equivalents	67,733	76,646
Securities available for sale	47,497	45,604
Loans held for sale	3,488	2,051
Accrued interest receivable	1,351	1,351
Bank-owned life insurance	10,731	10,475
Non-marketable equity securities	3,115	2,714
Financial liabilities:
Deposits	644,543	573,938
Advances from FHLB	15,000	15,000
Accrued interest payable	161	134
Other borrowings	8,073	8,072
Level 2 Inputs \| Total Fair Value
Financial assets:
Cash and cash equivalents	67,733	76,646
Securities available for sale	47,497	45,604
Loans held for sale	3,488	2,051
Accrued interest receivable	1,351	1,351
Bank-owned life insurance	10,731	10,475
Non-marketable equity securities	3,115	2,714
Financial liabilities:
Deposits	639,847	568,451
Advances from FHLB	15,028	15,055
Accrued interest payable	161	134
Other borrowings	8,073	8,072
Level 3 Inputs \| Carrying Amount
Financial assets:
Loans, net	575,398	490,158
Level 3 Inputs \| Total Fair Value
Financial assets:
Loans, net	$ 574,469	$ 490,344

Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
Financial instruments with off-balance sheet risk
Total commitments	$ 112,556	$ 93,037
Commitments to extend credit
Financial instruments with off-balance sheet risk
Total commitments	111,689	92,827
Standby letters of credit
Financial instruments with off-balance sheet risk
Total commitments	$ 867	$ 210

Employee Benefits (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
Employee Benefits (Details) - USD ($) $ in Thousands	Jan. 31, 2014	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Employee Benefits
Matching contributions to 401(k) profit sharing Plan		$ 0	$ 0
Summary of ESOP shares
Unearned shares		36,935
Total ESOP shares		36,935
ESOP
ESOP
Cost accrued				$ 120
Amount borrowed	$ 500
Shares purchased	46,082
Loan repayment		$ 118
Number of shares released		9,147
Compensation expense		$ 135	$ 90
Summary of ESOP shares
Allocated shares		16,958		7,811
Unearned shares		36,935
Total ESOP shares		53,893		7,811
Fair value of unearned shares		$ 476

Stock and Incentive Plans (Details) $ / shares in Units, $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2014 USD ($) $ / shares shares	Sep. 30, 2013 USD ($) item $ / shares shares	Dec. 31, 2013 $ / shares shares	Dec. 31, 2012 $ / shares shares	Dec. 31, 2010 shares
2010 Stock Option and Equity Incentive Plan
Stock and Incentive Plans
Number of shares authorized					1,000,000
Stock based compensation expense \| $	$ 259	$ 241
Unrecognized compensation expense (in dollars) \| $	$ 1,733
Omnibus Plan
Stock and Incentive Plans
Number of shares authorized	1,000,000
Number of options, shares or rights issued	0
Restricted shares
Stock and Incentive Plans
Unrecognized compensation expense (in dollars) \| $	$ 326
Additional disclosures
Requisite service period to recognize compensation cost	1 year 10 months 17 days
Activity in shares
Nonvested at the beginning of the period (in shares)	35,000	40,000	40,000
Forfeited (in shares)	1,250	6,000
Nonvested at the end of the period (in shares)	62,250	35,000	35,000	40,000
Activity in weighted average grant date fair value
Nonvested at the beginning of the period (in dollars per share) \| $ / shares	$ 10.02	$ 10.00	$ 10.00
Granted (in dollars per share) \| $ / shares	11.93	10.85
Forfeited (in dollars per share) \| $ / shares	10.85	10.00
Nonvested at the end of the period (in dollars per share) \| $ / shares	$ 10.87	$ 10.02	$ 10.02	$ 10.00
Restricted shares \| 2010 Stock Option and Equity Incentive Plan
Stock and Incentive Plans
Number of shares authorized					100,000
Term of continuous service for vesting awards	4 years
Number of shares awarded under restricted shares	28,500	1,000
Activity in shares
Granted (in shares)	28,500	1,000
Stock option
Stock and Incentive Plans
Unrecognized compensation expense (in dollars) \| $	$ 1,406
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model
Dividend yield (as a percent)	0.00%
Expected life	10 years
Expected volatility (as a percent)	5.60%
Risk-free interest rate, minimum (as a percent)	2.54%
Risk-free interest rate, maximum (as a percent)	2.71%
Stock option \| 2010 Stock Option and Equity Incentive Plan
Stock and Incentive Plans
Number of shares authorized					900,000
Term of continuous service for vesting awards	5 years
Contractual terms for non-controlling participants	10 years
Performance-based stock options
Stock and Incentive Plans
Unrecognized compensation expense (in dollars) \| $	$ 388
Shares Underlying Options activity
Outstanding at beginning of period (in shares)	422,500	432,500	432,500
Forfeited during the period (in shares)	5,000	20,000
Outstanding at the end of period (in shares)	467,500	417,500	422,500	432,500
Activity in weighted exercise price
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 10.02	$ 10.00	$ 10.00
Granted during the period (in dollars per share) \| $ / shares	11.19	10.85
Forfeited during the period (in dollars per share) \| $ / shares	10.85	10.00
Outstanding at the end of period (in dollars per share) \| $ / shares	10.14	10.01	$ 10.02	$ 10.00
Weighted average fair value of options granted during the period (in dollars per share) \| $ / shares	$ 2.02	$ 2.41
Weighted Average Contractual Term
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	6 years 9 months 25 days	7 years 6 months 7 days	8 years	8 years
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	6 years 9 months 25 days	7 years 6 months 7 days	8 years	8 years
Additional disclosures
Aggregate intrinsic value of outstanding stock options (in dollars) \| $	$ 1,300	$ 351
Aggregate intrinsic value of outstanding stock options (in dollars) \| $	$ 0	$ 0
Requisite service period to recognize compensation cost	6 years 3 months 4 days
Number of performance conditions met \| item		1
Performance-based stock options \| 2010 Stock Option and Equity Incentive Plan
Stock and Incentive Plans
Number of shares authorized					500,000
Number of shares awarded under stock options	50,000	5,000
Shares Underlying Options activity
Granted during the period (in shares)	50,000	5,000
Nonperformance-based stock options
Stock and Incentive Plans
Unrecognized compensation expense (in dollars) \| $	$ 298
Shares Underlying Options activity
Outstanding at beginning of period (in shares)	327,500	332,500	332,500
Forfeited during the period (in shares)	5,000	15,000
Outstanding at the end of period (in shares)	352,500	332,500	327,500	332,500
Options exercisable at end of period (in shares)	186,700	114,200
Activity in weighted exercise price
Outstanding at beginning of period (in dollars per share) \| $ / shares	$ 10.03	$ 10.00	$ 10.00
Granted during the period (in dollars per share) \| $ / shares	11.86	10.85
Forfeited during the period (in dollars per share) \| $ / shares	10.85
Outstanding at the end of period (in dollars per share) \| $ / shares	10.14	10.01	$ 10.03	$ 10.00
Options exercisable at end of period (in dollars per share) \| $ / shares	10.04	10.00
Weighted average fair value of options granted during the period (in dollars per share) \| $ / shares	$ 1.95	$ 2.41
Weighted Average Contractual Term
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	6 years 8 months 8 days	7 years 6 months 25 days	7 years 8 months 8 days	8 years 2 months 5 days
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	6 years 8 months 8 days	7 years 6 months 25 days	7 years 8 months 8 days	8 years 2 months 5 days
Options exercisable at end of period	6 years 7 months 6 days	7 years 5 months 1 day
Additional disclosures
Aggregate intrinsic value of outstanding stock options (in dollars) \| $	$ 973	$ 271
Aggregate intrinsic value of outstanding stock options (in dollars) \| $	$ 533	$ 97
Requisite service period to recognize compensation cost	1 year 10 months 6 days
Nonperformance-based stock options \| 2010 Stock Option and Equity Incentive Plan
Stock and Incentive Plans
Number of shares awarded under stock options	30,000	5,000
Shares Underlying Options activity
Granted during the period (in shares)	30,000	5,000

Preferred Stock (Details) $ in Thousands		9 Months Ended
Preferred Stock (Details) $ in Thousands	Aug. 25, 2011 USD ($) item shares	Sep. 30, 2014 USD ($)	Sep. 30, 2013 USD ($)
Preferred Stock
Shares issued pursuant to SBLF program, value \| $		$ 5,438	$ 1,150
SBLF Preferred Stock
Preferred Stock
Number of quarters during which dividend rate fluctuates \| item	10
Number of dividend payment defaults triggering appointment of a representative as an observer on the Company's Board of Directors \| item	5
Redemption price as a percentage of liquidation amount plus accrued but unpaid dividends	100.00%
SBLF Purchase Agreement \| SBLF Preferred Stock \| Initial dividend period
Preferred Stock
Dividend rate (as a percent)	1.00%
SBLF Purchase Agreement \| SBLF Preferred Stock \| Dividend period for tenth calendar quarter through four and one half years after issuance
Preferred Stock
Dividend rate (as a percent)	1.00%
Dividend period used in setting dividend rate	4 years 6 months
SBLF Purchase Agreement \| SBLF Preferred Stock \| Dividend period after four and one half years from issuance
Preferred Stock
Dividend rate (as a percent)	9.00%
Dividend period used in setting dividend rate	4 years 6 months
Quarterly lending incentive fee (as a percent)	5.00%
SBLF Purchase Agreement \| SBLF Preferred Stock \| Secretary of the Treasury
Preferred Stock
Shares issued pursuant to SBLF program \| shares	8,000
Shares issued pursuant to SBLF program, value \| $	$ 8,000

Capital Requirements and Restrictions on Retained Earnings (Details) - USD ($) $ in Thousands	Sep. 30, 2014	Dec. 31, 2013
Total capital (to risk weighted assets)
Actual Amount	$ 69,388	$ 59,100
Actual Ratio (as a percent)	11.90%	11.74%
For Capital Adequacy Purposes Amount	$ 46,640	$ 40,288
For Capital Adequacy Purposes Ratio (as a percent)	8.00%	8.00%
Tier 1 capital (to risk weighted assets)
Actual Amount	$ 58,528	$ 49,103
Actual Ratio (as a percent)	10.04%	9.75%
For Capital Adequacy Purposes Amount	$ 23,320	$ 20,144
For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
Tier 1 capital (to average assets)
Actual Amount	$ 58,528	$ 49,103
Actual Ratio (as a percent)	8.28%	8.06%
For Capital Adequacy Purposes Amount	$ 28,290	$ 24,373
For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
Bank
Total capital (to risk weighted assets)
Actual Amount	$ 67,458	$ 57,275
Actual Ratio (as a percent)	11.59%	11.37%
For Capital Adequacy Purposes Amount	$ 46,550	$ 40,296
For Capital Adequacy Purposes Ratio (as a percent)	8.00%	8.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 58,187	$ 38,817
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	10.00%	10.00%
Tier 1 capital (to risk weighted assets)
Actual Amount	$ 61,578	$ 52,257
Actual Ratio (as a percent)	10.58%	10.37%
For Capital Adequacy Purposes Amount	$ 23,275	$ 20,148
For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 34,912	$ 23,290
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	6.00%	6.00%
Tier 1 capital (to average assets)
Actual Amount	$ 61,578	$ 52,257
Actual Ratio (as a percent)	8.71%	8.58%
For Capital Adequacy Purposes Amount	$ 28,276	$ 24,369
For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 35,346	$ 24,762
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	5.00%	5.00%

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended
	Oct. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Subsequent Events
Common stock, par value (in dollars per share)		$ 0.01	$ 0.01
Subsequent event \| IPO
Subsequent Events
Shares of common stock issued	3,105,000
Common stock, par value (in dollars per share)	$ 0.01
Initial public offering price (in dollars per share)	$ 13.00
Gross proceeds	$ 40.4
Net proceeds after underwriting discounts and expenses	$ 35.7