View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2017	Jul. 24, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Veritex Holdings, Inc.
Entity Central Index Key	0001501570
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		15,233,709
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 28,687	$ 15,631
Interest bearing deposits in other banks	144,459	219,160
Total cash and cash equivalents	173,146	234,791
Investment securities	134,708	102,559
Loans held for sale	4,118	5,208
Loans, net of allowance for loan losses of $9,740 and $8,524, respectively	1,112,688	983,318
Accrued interest receivable	3,333	2,907
Bank-owned life insurance	20,369	20,077
Bank premises, furniture and equipment, net	17,978	17,413
Non-marketable equity securities	7,407	7,366
Investment in unconsolidated subsidiary	93	93
Other real estate owned	493	662
Intangible assets, net of accumulated amortization of $2,544 and $2,198, respectively	2,171	2,181
Goodwill	26,865	26,865
Other assets	5,220	5,067
Total assets	1,508,589	1,408,507
Deposits:
Noninterest-bearing	337,057	327,614
Interest-bearing	874,050	792,016
Total deposits	1,211,107	1,119,630
Accounts payable and accrued expenses	2,574	2,914
Accrued interest payable and other liabilities	1,032	534
Advances from Federal Home Loan Bank	38,235	38,306
Junior subordinated debentures	3,093	3,093
Subordinated notes	4,946	4,942
Total liabilities	1,260,987	1,169,419
Commitments and contingencies (Note 6)
Stockholders’ equity:
Common stock, $0.01 par value; 75,000,000 shares authorized at June 30, 2017 and December 31, 2016; 15,233,010 and 15,195,328 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively (excluding 10,000 shares held in treasury)	152	152
Additional paid-in capital	211,901	211,173
Retained earnings	36,003	29,290
Unallocated Employee Stock Ownership Plan shares; 18,783 and 18,783 shares at June 30, 2017 and December 31, 2016, respectively	(209)	(209)
Accumulated other comprehensive loss	(175)	(1,248)
Treasury stock, 10,000 shares at cost	(70)	(70)
Total stockholders’ equity	247,602	239,088
Total liabilities and stockholders’ equity	$ 1,508,589	$ 1,408,507

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 9,740	$ 8,524
Intangible assets, accumulated amortization	$ 2,544	$ 2,198
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	15,233,010	15,195,328
Common stock, shares outstanding	15,233,010	15,195,328
Unallocated Employee Stock Ownership Plan shares, shares	18,783	18,783
Treasury stock, shares	10,000	10,000

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Interest income:
Interest and fees on loans	$ 13,024	$ 11,052	$ 24,907	$ 21,407
Interest on investment securities	735	344	1,310	679
Interest on deposits in other banks	548	80	1,158	173
Interest on other	0	1	1	2
Total interest income	14,307	11,477	27,376	22,261
Interest expense:
Interest on deposit accounts	1,742	1,072	3,389	2,007
Interest on borrowings	189	177	358	335
Total interest expense	1,931	1,249	3,747	2,342
Net interest income	12,376	10,228	23,629	19,919
Provision for loan losses	943	527	1,833	1,372
Net interest income after provision for loan losses	11,433	9,701	21,796	18,547
Noninterest income:
Service charges and fees on deposit accounts	555	443	1,064	877
Gain on sales of investment securities	0	0	0	15
Gain on sales of loans	815	620	1,562	1,282
Loss on sale of other assets owned	(8)	0	(8)	0
Bank-owned life insurance	186	191	373	384
Other	218	158	310	227
Total noninterest income	1,766	1,412	3,301	2,785
Noninterest expense:
Salaries and employee benefits	3,642	3,589	7,550	6,763
Occupancy and equipment	1,015	894	2,026	1,795
Professional fees	1,188	503	1,986	1,076
Data processing and software expense	372	270	732	554
FDIC assessment fees	393	132	651	269
Marketing	225	211	469	411
Other assets owned expenses and write-downs	13	55	38	130
Amortization of intangibles	95	95	190	190
Telephone and communications	106	100	208	197
Other	733	452	1,382	892
Total noninterest expense	7,782	6,301	15,232	12,277
Net income from operations	5,417	4,812	9,865	9,055
Income tax expense	1,802	1,639	3,152	3,069
Net income	$ 3,615	$ 3,173	$ 6,713	$ 5,986
Basic earnings per share (in dollars per share)	$ 0.24	$ 0.30	$ 0.44	$ 0.56
Diluted earnings per share (in dollars per share)	$ 0.23	$ 0.29	$ 0.43	$ 0.55

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 3,615	$ 3,173	$ 6,713	$ 5,986
Other comprehensive income:
Unrealized gains on securities available for sale arising during the period, net	1,318	305	1,622	663
Reclassification adjustment for net gains included in net income	0	0	0	15
Other comprehensive income before tax	1,318	305	1,622	648
Income tax expense	445	104	549	220
Other comprehensive income, net of tax	873	201	1,073	428
Comprehensive income	$ 4,488	$ 3,374	$ 7,786	$ 6,414

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Unallocated Employee Stock Ownership Plan Shares	Treasury Stock
Beginning balance at Dec. 31, 2015	$ 132,046	$ 107	$ 115,721	$ 16,739	$ (142)	$ (309)	$ (70)
Beginning balance (in shares) at Dec. 31, 2015		10,712,472
Increase (Decrease) in Stockholders' Equity
Restricted stock units vested, net of 7,103 and 4,171 shares withheld to cover tax withholdings for June 30, 2017 and 2016, respectively (in shares)		15,391
Restricted stock units vested, net of 7,103 and 4,171 shares withheld to cover tax withholdings June 30, 2017 and 2016, respectively	(73)		(73)
Stock based compensation	463		463
Net income	5,986			5,986
Other comprehensive income	428				428
Ending balance at Jun. 30, 2016	138,850	$ 107	116,111	22,725	286	(309)	(70)
Ending balance (in shares) at Jun. 30, 2016		10,727,863
Beginning balance at Dec. 31, 2016	$ 239,088	$ 152	211,173	29,290	(1,248)	(209)	(70)
Beginning balance (in shares) at Dec. 31, 2016	15,195,328	15,195,328
Increase (Decrease) in Stockholders' Equity
Restricted stock units vested, net of 7,103 and 4,171 shares withheld to cover tax withholdings for June 30, 2017 and 2016, respectively (in shares)		22,233
Restricted stock units vested, net of 7,103 and 4,171 shares withheld to cover tax withholdings June 30, 2017 and 2016, respectively	$ (191)		$ (191)
Exercise of employee stock options, net 1,095 shares withheld to cover tax withholdings (in shares)			15,449
Exercise of employee stock options, net 1,095 shares withheld to cover tax withholdings	144		$ 144
Offering costs from sale of common stock	(16)		(16)
Stock based compensation	791		791
Net income	6,713			6,713
Other comprehensive income	1,073				1,073
Ending balance at Jun. 30, 2017	$ 247,602	$ 152	$ 211,901	$ 36,003	$ (175)	$ (209)	$ (70)
Ending balance (in shares) at Jun. 30, 2017	15,233,010	15,233,010

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Restricted stock units
Shares withheld to cover tax withholdings	7,103	4,171
Common Stock
Shares withheld to cover tax withholdings	22,233	15,391
Shares withheld to cover tax withholdings	1,095

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 6,713	$ 5,986
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	877	808
Provision for loan losses	1,833	1,372
Accretion of loan purchase discount	(190)	(243)
Stock-based compensation expense	791	463
Excess tax benefit from stock compensation	(214)	0
Net amortization of premiums on investment securities	634	431
Change in cash surrender value of bank-owned life insurance	(292)	(308)
Net gain on sales of investment securities	0	(15)
Gain on sales of loans held for sale	(515)	(775)
Gain on sales of SBA loans	(1,047)	(507)
Net loss on sales of other real estate owned	8	0
Amortization of subordinated note discount	4	1
Net originations of loans held for sale	(20,336)	(30,203)
Write down on foreclosed assets	0	114
Proceeds from sales of loans held for sale	21,941	28,823
Deferred tax benefit	(320)	0
Increase in accrued interest receivable and other assets	(876)	(1,360)
Increase (decrease) in accounts payable, accrued expenses, accrued interest payable and other liabilities	158	(378)
Net cash provided by operating activities	9,169	4,209
Cash flows from investing activities:
Purchases of securities available for sale	(40,354)	(26,706)
Sales of securities available for sale	0	8,378
Proceeds from maturities, calls and pay downs of investment securities	9,194	10,696
Purchases of non-marketable equity securities, net	(41)	(2,868)
Net loans originated	(145,758)	(109,246)
Proceeds from sale of SBA loans	15,792	2,397
Net additions to bank premises and equipment	(1,151)	(344)
Purchase of other real estate owned	(336)	0
Proceeds from sales of other real estate owned	497	0
Net cash used in investing activities	(162,157)	(117,693)
Cash flows from financing activities:
Net change in deposits	91,477	159,319
Net (decrease) increase in advances from Federal Home Loan Bank	(71)	9,931
Proceeds from exercise of employee stock options	150	0
Costs from issuance of stock related to stock-based awards	(197)	(73)
Offering costs paid in connection with issuance of common stock	(16)	0
Net cash provided by financing activities	91,343	169,177
Net (decrease) increase in cash and cash equivalents	(61,645)	55,693
Cash and cash equivalents at beginning of period	234,791	71,551
Cash and cash equivalents at end of period	$ 173,146	$ 127,244

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Nature of Organization

Veritex Holdings, Inc. (“Veritex” or the “Company”), a Texas corporation and bank holding company, was incorporated in July 2009 and was formed for the purpose of acquiring one or more financial institutions located in Dallas, Texas and surrounding areas.

Veritex through its wholly-owned subsidiary, Veritex Community Bank, formerly known as Veritex Community Bank, National Association (the “Bank”), is a Texas state banking organization, with corporate offices in Dallas, Texas, and currently operates eleven 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 Board of Governors of the Federal Reserve System are the primary regulators of the Company and the Bank, which perform periodic examinations to ensure regulatory compliance.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Veritex and the Bank as its wholly-owned subsidiary.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“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 condensed consolidated financial position at June 30, 2017 and December 31, 2016, condensed consolidated results of operations for the three and six months ended June 30, 2017 and 2016, condensed consolidated stockholders’ equity for the six months ended June 30, 2017 and 2016 and condensed consolidated cash flows for the six months ended June 30, 2017 and 2016.

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, 2016 included within the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 10, 2017.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated 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.

Segment Reporting

The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent on the other and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit. The Company’s chief operating decision-maker, the CEO, uses the consolidated results to make operating and strategic decisions.

Reclassifications

Effective January 1, 2017, the Company adopted ASU 2016-09. Per ASU 2016-09 cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity and for presentation purposes be applied retrospectively. For the six months ended June 30, 2016, the Company moved these costs from the accrued interest receivable and other assets line item in the cash flows from operating activities to the costs from issuance of stock related to stock-based awards line item on the cash flows from financing activities section on the cash flow statement.

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 six months ended June 30, 2017 and 2016:



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Earnings (numerator)
Net income	$	3,615	$	3,173	$	6,713	$	5,986
Shares (denominator)
Weighted average shares outstanding for basic EPS (thousands)	15,211		10,696		15,205		10,695
Dilutive effect of employee stock-based awards	426		298		428		283
Adjusted weighted average shares outstanding	15,637		10,994		15,633		10,978
Earnings per share:
Basic	$	0.24	$	0.30	$	0.44	$	0.56
Diluted	$	0.23	$	0.29	$	0.43	$	0.55

For the six months ended June 30, 2017 there were no exclusions from the diluted EPS weighted average shares and for the six months ended June 30, 2016 there were 117,624 shares excluded from the diluted EPS, as the inclusion of those shares would have been anti-dilutive.

Recent Accounting Pronouncements

ASU 2017-04 “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”) eliminates Step 2 from the goodwill impairment test. In addition, the amendment eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. For pubic companies, ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements.

ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”) requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. For public companies, ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements.

ASU 2016-13 “Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods therein. The Company is continuing to evaluate the impact of the adoption of ASU 2016-03 and is uncertain of the impact on the consolidated financial statements at this point in time.

ASU 2016-09 “Compensation —Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Per ASU 2016-09: (1) all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement, rather than in additional paid-in capital under current guidance; (2) excess tax benefits should be classified along with other income tax cash flows as an operating activity on the statement of cash flows, rather than as a separate cash inflow from financing activities and cash outflow from operating activities under current guidance; (3) cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity; and (4) an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, as under current guidance, or account for forfeitures when they occur. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods therein.

Effective January 1, 2017, the Company adopted ASU 2016-09. For the three and six months ended June 30, 2017, the Company recognized an excess income tax benefit of $42 and $214 that reduced the income tax provision and increased net income on the condensed consolidated statements of income. The Company prospectively applied the guidance for the presentation of excess tax benefits as an operating cash flow and included the $214 excess income tax benefit as an operating activity on the condensed consolidated statement of cash flows for the six months ended June 30, 2017. In addition, the Company retrospectively applied the guidance for the presentation of the cash paid by an employer when directly withholding shares for tax-withholding purposes be classified as a financing activity on the condensed consolidated statement of cash flows for the six months ended June 30, 2017 and 2016. Finally, the Company elected to account for forfeitures as they occur.

ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”) is intended to improve the reporting of leasing transactions to provide users of financial statements with more decision-useful information. ASU 2016-02 will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements.

ASU 2016-01 “Financial Instruments─Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”) amends certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. This update will be effective for the Company on January 1, 2018. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements.

ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 establishes a five-step model which entities must follow to recognize revenue and removes inconsistencies and weaknesses in existing guidance. The original effective date for ASU 2014-09 was for annual and interim periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU 2015-14, which deferred the effective date by one year, therefore it is now effective for interim and annual reporting periods beginning after December 15, 2017. The Company will adopt the guidance in the first quarter of 2018 using the modified retrospective application with a cumulative-effect adjustment, if such adjustment is significant. While the guidance will replace most existing revenue recognition guidance in GAAP, the ASU is not applicable to financial instruments and, therefore, will not impact a majority of the Company’s revenue, including net interest income. Our implementation efforts to date include identification of revenue streams within the scope of the guidance, and we have begun evaluation of revenue contracts and related accounting policies.

Statement of Cash Flows

6 Months Ended

Jun. 30, 2017

Supplemental Cash Flow Elements [Abstract]

Statement of Cash Flows

Other supplemental cash flow information is presented below:



	Six Months Ended June 30,
	2017		2016
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	3,745	$	2,329
Cash paid for income taxes	3,500		4,650
Supplemental Disclosures of Non-Cash Flow Information:
Net foreclosure of other real estate owned and repossessed assets	$	—	$	114

Investment Securities

6 Months Ended

Jun. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Debt and equity securities have been classified in the condensed consolidated balance sheets according to management’s intent. The carrying amount of securities and their approximate fair values are as follows:



	June 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for Sale
U.S. government agencies	$	691	$	—	$	10	$	681
Corporate securities	7,500		197		—		$	7,697
Municipal securities	14,914		42		126		14,830
Mortgage-backed securities	65,814		115		340		65,589
Collateralized mortgage obligations	45,370		158		316		45,212
Asset-backed securities	688		11		—		699
	$	134,977	$	523	$	792	$	134,708



	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for Sale
U.S. government agencies	$	732	$	—	$	36	$	696
Municipal securities	14,540		2		500		14,042
Mortgage-backed securities	49,907		83		871		49,119
Collateralized mortgage obligations	38,507		32		612		37,927
Asset-backed securities	764		11		—		775
	$	104,450	$	128	$	2,019	$	102,559

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:



	June 30, 2017
	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	$	—	$	—	$	681	$	10	$	681	$	10
Municipal securities	7,052		107		1,346		19		8,398		126
Mortgage-backed securities	42,127		289		3,937		51		46,064		340
Collateralized mortgage obligations	28,283		293		1,473		23		29,756		316
	$	77,462	$	689	$	7,437	$	103	$	84,899	$	792



	December 31, 2016
	Less Than 12 Months				12 Months or More				Totals
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Available for Sale
U.S. government agencies	$	—	$	—	$	696	$	36	$	696	$	36
Municipal securities	12,060		478		518		22		12,578		500
Mortgage-backed securities	37,274		802		6,848		69		44,122		871
Collateralized mortgage obligations	29,618		584		1,618		28		31,236		612
	$	78,952	$	1,864	$	9,680	$	155	$	88,632	$	2,019

The number of investment positions in an unrealized loss position totaled 64 and 72 at June 30, 2017 and December 31, 2016, respectively. 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 June 30, 2017. 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, as of the dates indicated, are shown in the table 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, 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.



	June 30, 2017
	Available For Sale
	Amortized Cost		Fair Value
Due in one year or less	$	—	$	—
Due from one year to five years	3,928		3,952
Due from five years to ten years	4,504		4,435
Due after ten years	7,173		7,124
	15,605		15,511
Corporate securities	7,500		7,697
Mortgage-backed securities	65,814		65,589
Collateralized mortgage obligations	45,370		45,212
Asset-backed securities	688		699
	$	134,977	$	134,708



	December 31, 2016
	Available For Sale
	Amortized Cost		Fair Value
Due in one year or less	$	—	$	—
Due from one year to five years	4,009		3,974
Due from five years to ten years	3,522		3,346
Due after ten years	7,741		7,418
	15,272		14,738
Mortgage-backed securities	49,907		49,119
Collateralized mortgage obligations	38,507		37,927
Asset-backed securities	764		775
	$	104,450	$	102,559

Proceeds from sales of investment securities available for sale and gross gains and losses for the six months ended June 30, 2017 and 2016 were as follows:



	Six Months Ended June 30,
	2017		2016
Proceeds from sales	$	—	$	8,378
Gross realized gains	—		43
Gross realized losses	—		40

There were no gross gains from calls of investment securities included in gain on sale of investment securities in the accompanying condensed consolidated statements for the six months ended June 30, 2017 and $12 gross gains from calls of investment securities included in the condensed consolidated statements for the six months ended June 30, 2016.

There was a blanket floating lien on all securities held by the Company to secure Federal Home Loan Bank advances as of June 30, 2017 and December 31, 2016.

- Definition

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

+ References + Details

Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Loans and Allowance for Loan Losses

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



	June 30, 2017			December 31, 2016
Real estate:
Construction and land	$	136,332		$	162,614
Farmland	8,448			8,262
1 - 4 family residential	157,823			140,137
Multi-family residential	38,265			14,683
Commercial Real Estate	430,895			370,696
Commercial	347,017			291,416
Consumer	3,688			4,089
	1,122,468			991,897
Deferred loan fees	(40		)	(55		)
Allowance for loan losses	(9,740		)	(8,524		)
	$	1,112,688		$	983,318

Included in the net loan portfolio as of June 30, 2017 and December 31, 2016 is an accretable discount related to loans acquired within a business combination in the approximate amounts of $376 and $566, 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 was adequate to cover estimated losses on loans as of June 30, 2017 and December 31, 2016.

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 the accrual of interest 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 aggregated by class of loans, as of June 30, 2017 and December 31, 2016, are as follows:



	June 30, 2017		December 31, 2016
Real estate:
Construction and land	$	—	$	—
Farmland	—		—
1 - 4 family residential	—		—
Multi-family residential	—		—
Commercial Real Estate	727		—
Commercial	778		930
Consumer	9		11
	$	1,514	$	941

During the six months ended June 30, 2017 and 2016, interest income not recognized on non-accrual loans was minimal.

An aging analysis of past due loans, aggregated by class of loans, as of June 30, 2017 and December 31, 2016 is as follows:



	June 30, 2017
	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	$	492	$	—	$	—	$	492	$	135,840	$	136,332	$	—
Farmland	—		—		—		—		8,448		8,448		—
1 - 4 family residential	815		—		—		815		157,008		157,823		—
Multi-family residential	—		—		—		—		38,265		38,265		—
Commercial Real Estate	—		—		727		727		430,168		430,895		—
Commercial	137		392		781		1,310		345,707		347,017		15
Consumer	9		—		—		9		3,679		3,688		—
	$	1,453	$	392	$	1,508	$	3,353	$	1,119,115	$	1,122,468	$	15



	December 31, 2016
	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	$	1,047	$	—	$	—	$	1,047	$	161,567	$	162,614	$	—
Farmland	—		—		—		—		8,262		8,262		—
1 - 4 family residential	510		214		—		724		139,413		140,137		—
Multi-family residential	—		—		—		—		14,683		14,683		—
Commercial Real Estate	—		—		754		754		369,942		370,696		754
Commercial	1,344		438		532		2,314		289,102		291,416		81
Consumer	41		—		—		41		4,048		4,089		—
	$	2,942	$	652	$	1,286	$	4,880	$	987,017	$	991,897	$	835

Loans past due 90 days and still accruing, decreased from $835 as of December 31, 2016 to $15 as of June 30, 2017. These loans are also considered well-secured and in the process of collection with plans in place for the borrowers to bring the notes fully current. The Company believes that it will collect all principal and interest due on each of the loans past due 90 days and still accruing.

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 (“PCI”) loans and TDRs, at June 30, 2017 and December 31, 2016 are summarized in the following tables.



	June 30, 2017
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment YTD
Real estate:
Construction and land	$	—	$	—	$	—	$	—	$	—	$	—
Farmland	—		—		—		—		—		—
1 - 4 family residential	163		163		—		163		—		212
Multi-family residential	—		—		—		—		—		—
Commercial Real Estate	1,104		1,104		—		1,104		—		1,140
Commercial	793		540		253		793		137		886
Consumer	86		77		9		86		1		89
Total	$	2,146	$	1,884	$	262	$	2,146	$	138	$	2,327



	December 31, 2016
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment YTD
Real estate:
Construction and land	$	—	$	—	$	—	$	—	$	—	$	—
Farmland	—		—		—		—		—		—
1 - 4 family residential	164		164		—		164		—		265
Multi-family residential	—		—		—		—		—		—
Commercial Real Estate	382		382		—		382		—		440
Commercial	955		381		574		955		246		463
Consumer	92		81		11		92		4		12
Total	$	1,593	$	1,008	$	585	$	1,593	$	250	$	1,180

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.

During the six months ended June 30, 2017 and 2016, 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 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. The recorded investment in TDRs was $653 and $822 as of June 30, 2017 and December 31, 2016, respectively.

During the six months ended June 30, 2017 and 2016 no loans were modified as TDRs.

There was one loan modified as a troubled debt restructured loan within the previous 12 months and for which there was a payment default during the six months ended June 30, 2017 and none for the six months ended June 30, 2016. A default for purposes of this disclosure is a TDR 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 six months ended June 30, 2017 and 2016 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 classified as TDRs as of June 30, 2017 or December 31, 2016.

Credit Quality Indicators

From a credit risk standpoint, the Company classifies its loans in the following 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 by management 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 believed 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 the 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 in 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.

The following tables summarize the Company’s internal ratings of its loans, including purchased credit impaired loans, as of June 30, 2017 and December 31, 2016:



	June 30, 2017
	Pass		Special Mention		Substandard		Doubtful		Total
Real estate:
Construction and land	$	136,332	$	—	$	—	$	—	$	136,332
Farmland	8,448		—		—		—		8,448
1 - 4 family residential	157,564		—		259		—		157,823
Multi-family residential	38,265		—		—		—		38,265
Commercial Real Estate	424,247		5,358		1,290		—		430,895
Commercial	338,701		6,990		1,210		116		347,017
Consumer	3,672		—		16		—		3,688
Total	$	1,107,229	$	12,348	$	2,775	$	116	$	1,122,468



	December 31, 2016
	Pass		Special Mention		Substandard		Doubtful		Total
Real estate:
Construction and land	$	162,614	$	—	$	—	$	—	$	162,614
Farmland	8,262		—		—		—		8,262
1 - 4 family residential	139,212		710		215		—		140,137
Multi-family residential	14,683		—		—		—		14,683
Commercial Real Estate	368,370		2,326		—		—		370,696
Commercial	289,589		686		1,034		107		291,416
Consumer	4,078		—		11		—		4,089
Total	$	986,808	$	3,722	$	1,260	$	107	$	991,897

An analysis of the allowance for loan losses for the six months ended June 30, 2017 and 2016 and year ended December 31, 2016 is as follows:



	Six Months Ended June 30, 2017			Year Ended December 31, 2016			Six Months Ended June 30, 2016
Balance at beginning of year	$	8,524		$	6,772		$	6,772
Provision charged to earnings	1,833			2,050			1,372
Charge-offs	(622		)	(333		)	(249		)
Recoveries	5			35			15
Net charge-offs	(617		)	(298		)	(234		)
Balance at end of year	$	9,740		$	8,524		$	7,910

The allowance for loan losses as a percentage of total loans was 0.87%, 0.86% and 0.85% as of June 30, 2017, December 31, 2016, and June 30, 2016, respectively.

The following tables summarize the activity in the allowance for loan losses by portfolio segment for the periods indicated:



	For the Six Months Ended June 30, 2017
	Real Estate
	Construction, Land and Farmland			Residential			Commercial Real Estate		Commercial			Consumer			Total
Balance at beginning of period	$	1,415		$	1,116		$	3,003	$	2,955		$	35		$	8,524
Provision (recapture) charged to earnings	(291		)	370			554		1,205			(5		)	1,833
Charge-offs	—			(11		)	—		(611		)	—			(622		)
Recoveries	—			—			—		5			—			5
Net charge-offs (recoveries)	—			(11		)	—		(606		)	—			(617		)
Balance at end of period	$	1,124		$	1,475		$	3,557	$	3,554		$	30		$	9,740
Period-end amount allocated to:
Specific reserves:
Impaired loans	$	—		$	—		$	—	$	137		$	1		$	138
Total specific reserves	—			—			—		137			1			138
General reserves	1,124			1,475			3,557		3,417			29			9,602
Total	$	1,124		$	1,475		$	3,557	$	3,554		$	30		$	9,740



	For the Year Ended December 31, 2016
	Real Estate
	Construction, Land and Farmland		Residential			Commercial Real Estate		Commercial			Consumer			Total
Balance at beginning of period	$	1,104	$	1,124		$	2,189	$	2,324		$	31		$	6,772
Provision (recapture) charged to earnings	311		(8		)	814		913			20			2,050
Charge-offs	—		—			—		(314		)	(19		)	(333		)
Recoveries	—		—			—		32			3			35
Net charge-offs (recoveries)	—		—			—		(282		)	(16		)	(298		)
Balance at end of period	$	1,415	$	1,116		$	3,003	$	2,955		$	35		$	8,524
Period-end amount allocated to:
Specific reserves:
Impaired loans	$	—	$	—		$	—	$	246		$	4		$	250
Total specific reserves	—		—			—		246			4			250
General reserves	1,415		1,116			3,003		2,709			31			8,274
Total	$	1,415	$	1,116		$	3,003	$	2,955		$	35		$	8,524



	For the Six Months Ended June 30, 2016
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial			Consumer			Total
Balance at beginning of year	$	1,104	$	1,124	$	2,189	$	2,324		$	31		$	6,772
Provision (recapture) charged to earnings	286		67		397		618			4			1,372
Charge-offs	—		—		—		(240		)	(9		)	(249		)
Recoveries	—		—		—		14			1			15
Net charge-offs (recoveries)	—		—		—		(226		)	(8		)	(234		)
Balance at end of year	$	1,390	$	1,191	$	2,586	$	2,716		$	27		$	7,910
Period-end amount allocated to:
Specific reserves:
Impaired loans	$	—	$	—	$	—	$	80		$	4		$	84
Total specific reserves	—		—		—		80			4			84
General reserves	1,390		1,191		2,586		2,636			23			7,826
Total	$	1,390	$	1,191	$	2,586	$	2,716		$	27		$	7,910

The Company’s recorded investment in loans as of June 30, 2017 and December 31, 2016 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows:



	June 30, 2017
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial		Consumer		Total
Loans individually evaluated for impairment	$	—	$	163	$	1,104	$	793	$	86	$	2,146
Loans collectively evaluated for impairment	144,780		195,925		429,791		346,224		3,602		1,120,322
Total	$	144,780	$	196,088	$	430,895	$	347,017	$	3,688	$	1,122,468



	December 31, 2016
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial		Consumer		Total
Loans individually evaluated for impairment	$	—	$	164	$	382	$	955	$	92	$	1,593
Loans collectively evaluated for impairment	170,876		154,656		370,314		290,461		3,997		990,304
Total	$	170,876	$	154,820	$	370,696	$	291,416	$	4,089	$	991,897

The Company has acquired certain loans which experienced credit deterioration since origination which are PCI loans. Accretion on PCI loans is based on estimated future cash flows, regardless of contractual maturity.

Servicing Assets

At June 30, 2017, the Company was servicing loans of approximately $44,720. A summary of the changes in the related servicing assets are as follows:



	Six Months Ended June 30,
	2017			2016
Balance at beginning of year	$	601		$	426
Increase from loan sales	281			111
Amortization charged to income	(88		)	(55		)
Balance at end of period	$	794		$	482

The estimated fair value of the servicing assets approximated the carrying amount at June 30, 2017, December 31, 2016, and June 30, 2016. Fair value is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. At June 30, 2017, there was no valuation allowance recorded.

The Company may also receive a portion of subsequent interest collections on loans sold that exceed the contractual servicing fee. In that case, the Company records an interest-only strip based on its relative fair market value and the other components of the loans. There was no interest-only strip receivable recorded at June 30, 2017 and December 31, 2016.

- 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	6 Months Ended
Income Taxes	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s estimated annual effective tax rate, before the net impact of discrete items, was approximately 34.5% and 34.1% for the six months ended June 30, 2017 and 2016, respectively. The Company’s effective tax rate, after including the net impact of discrete tax items, was approximately 32.0% and 33.9%, respectively, for the six months ended June 30, 2017 and 2016. The Company’s provision was impacted by a net discrete tax benefit of $255 primarily associated with the recognition of excess tax benefit on share-based payment awards for the six months ended June 30, 2017. The Company’s estimated annual effective tax rate, before the net impact of discrete items, was approximately 34.8% and 34.1% for the three months ended June 30, 2017 and 2016, respectively. The Company’s effective tax rate, after including the net impact of discrete tax items, was approximately 33.3% and 34.1%, respectively, for the three months ended June 30, 2017 and 2016. The Company’s provision was impacted by a net discrete tax benefit of $83 primarily associated with the recognition of excess tax benefit on share-based payment awards for the three months ended June 30, 2017. 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. Included in the accompanying condensed consolidated balance sheet as of June 30, 2017 is a current tax liability of approximately $94 in accrued interest payable and other liabilities and a net deferred tax asset of approximately $3,452 in other assets. Included in the accompanying condensed consolidated balance sheets as of December 31, 2016 is a current tax receivable of $91 and a net deferred tax asset of $3,467 in other assets.

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	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 $881 and $684 for the six months ended June 30, 2017 and 2016, respectively.

Fair Value Disclosures

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Disclosures

The authoritative guidance for fair value measurements 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.

The authoritative guidance 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, mortgage-backed securities, collateralized mortgage obligations, and asset-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 or trade execution data for similar securities, 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 June 30, 2017 and December 31, 2016, 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
As of June 30, 2017
Investment securities available for sale	$	—	$	134,708	$	—	$	134,708
As of December 31, 2016
Investment securities available for sale	$	—	$	102,559	$	—	$	102,559

There were no liabilities measured at fair value on a recurring basis as of June 30, 2017 or December 31, 2016.

There were no transfers between Level 2 and Level 3 during the six months ended June 30, 2017 and 2016.

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 June 30, 2017 and December 31, 2016, 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
As of June 30, 2017
Assets:
Impaired loans	$	—	$	—	$	2,008	$	2,008
As of December 31, 2016
Assets:
Impaired loans	$	—	$	—	$	1,343	$	1,343

At June 30, 2017, impaired loans had a carrying value of $2,146, with $138 specific allowance for loan loss allocated.

At December 31, 2016, impaired loans had a carrying value of $1,593, with $250 specific allowance for loan loss allocated.

There were no liabilities measured at fair value on a non-recurring basis as of June 30, 2017 or December 31, 2016.

For Level 3 financial assets measured at fair value as of June 30, 2017 and December 31, 2016, the significant unobservable inputs used in the fair value measurements were as follows:



June 30, 2017
			Valuation	Unobservable	Weighted
Assets/Liabilities	Fair Value		Technique	Input(s)	Average
Impaired loans	$	2,008	Collateral Method	Adjustments for selling costs	8	%



December 31, 2016
			Valuation	Unobservable	Weighted
Assets/Liabilities	Fair Value		Technique	Input(s)	Average
Impaired loans	$	1,343	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 its 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 an estimate 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 valuation 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 amount of cash and cash equivalents approximates 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, 1-4 family residential), commercial real estate and commercial loans are estimated using discounted cash flow analysis, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.

Servicing assets: The estimated fair value of the servicing assets approximated the carrying amount at June 30, 2017 and December 31, 2016. Fair value is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. At June 30, 2017 and December 31, 2016 no valuation allowance was recorded.

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

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.

Junior subordinated debentures and subordinated notes: 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 condensed consolidated financial statements.

The estimated fair values and carrying values of all financial instruments under current authoritative guidance as of June 30, 2017 and December 31, 2016 were as follows:



	June 30,				December 31,
	2017				2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Level 1 inputs:
Cash and cash equivalents	$	173,146	$	173,146	$	234,791	$	234,791
Level 2 inputs:
Investment securities	134,708		134,708		102,559		102,559
Loans held for sale	4,118		4,118		5,208		5,208
Accrued interest receivable	3,333		3,333		2,907		2,907
Bank-owned life insurance	20,369		20,369		20,077		20,077
Servicing asset	794		794		601		601
Non-marketable equity securities	7,407		7,407		7,366		7,366
Level 3 inputs:
Loans, net	1,112,688		1,120,692		983,318		987,021
Financial liabilities:
Level 2 inputs:
Deposits	$	1,211,107	$	1,158,631	$	1,119,630	$	1,085,888
Advances from FHLB	38,235		38,280		38,306		38,570
Accrued interest payable	125		125		141		141
Junior subordinated debentures	3,093		3,093		3,093		3,093
Subordinated notes	4,946		4,946		4,942		4,942

- 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

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

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 condensed consolidated balance sheets.

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 June 30, 2017 and December 31, 2016:



	June 30,		December 31,
	2017		2016
Commitments to extend credit	$	269,863	$	236,919
Standby and commercial letters of credit	5,936		6,933
	$	275,799	$	243,852

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

6 Months Ended

Jun. 30, 2017

Compensation and Retirement Disclosure [Abstract]

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 for the six months ended June 30, 2017 and 2016.

ESOP

Effective January 1, 2012, the Company adopted the Veritex Community Bank 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 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 that 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 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.

In January 2014, the ESOP borrowed $500 from the Company and purchased 46,082 shares of the Company’s common stock. 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 condensed consolidated balance sheets.

Compensation expense attributed to the ESOP contributions recorded in the accompanying condensed consolidated statements of income for the six months ended June 30, 2017 and 2016 was approximately $57 and $92, respectively.

The following is a summary of ESOP shares as of June 30, 2017 and December 31, 2016:



	June 30,		December 31,
	2017		2016
Allocated shares	44,257		44,257
Unearned shares	18,783		18,783
Total ESOP shares	63,040		63,040
Fair value of unearned shares	$	495	$	502

Stock and Incentive Plan

6 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock and Incentive Plan

2010 Stock Option and Equity Incentive Plan

In 2010, the Company adopted the 2010 Stock Option and Equity Incentive Plan (the “2010 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 2010 Incentive Plan is 1,000,000. The 2010 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 2010 Incentive Plan. The Company may grant either incentive stock options or nonqualified stock options as directed in the 2010 Incentive Plan.

The Board of Directors authorized the 2010 Incentive Plan to 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 2010 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 2010 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.

With the adoption of the 2014 Omnibus Plan, which is discussed below, the Company does not plan to award any additional grants or options under the 2010 Incentive Plan.

During the six months ended June 30, 2017 and 2016, the Company did not award any restricted stock units, non-performance-based stock options or performance-based stock options under the 2010 Incentive Plan.

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). Stock compensation expense related to the 2010 Incentive Plan recognized in the accompanying condensed consolidated statements of income totaled $20 and $42 for the three and six months ended June 30, 2017 and $29 and $57 for the three and six months ended June 30, 2016, respectively.

A summary of option activity under the 2010 Incentive Plan for the six months ended June 30, 2017 and 2016, and changes during the period then ended is presented below:



	For the Six Months Ended June 30, 2017
	Non-performance-based Stock Options
	Shares Underlying Options		Weighted Exercise Price		Weighted Average Contractual Term
Outstanding at beginning of year	325,500		$	10.15	4.56 years
Granted during the period	—		—
Forfeited during the period	—		—
Canceled during the period	—		—
Exercised during the period	(15,000	)	10.00
Outstanding at the end of period	310,500		$	10.16	4.09 years
Options exercisable at end of period	297,000		$	10.12	4.00 years
Weighted average fair value of options granted during the period			$	—



	For the Six Months Ended June 30, 2016
	Non-performance-based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term
Outstanding at beginning of year	325,500	$	10.15	5.56 years
Granted during the period	—	—
Forfeited during the period	—	—
Exercised during the period	—	—
Outstanding at the end of period	325,500	$	10.15	5.06 years
Options exercisable at end of period	298,200	$	10.09	4.91 years
Weighted average fair value of options granted during the period		$	—

As of June 30, 2017, December 31, 2016 and June 30, 2016, the aggregate intrinsic value was $5,022, $5,390 and $1,911, respectively, for outstanding non-performance-based stock options, $4,814, $5,086 and $1,768, respectively, for exercisable non-performance-based stock options.

As of June 30, 2017, December 31, 2016 and June 30, 2016, there was approximately $15, $21 and $36, respectively, of unrecognized compensation expense related to non-performance-based stock options. The unrecognized compensation expense at June 30, 2017 is expected to be recognized over the remaining weighted average requisite service period of 1.00 year.

A summary of the status of the Company’s restricted stock units under the 2010 Incentive Plan as of June 30, 2017 and 2016, and changes during the six months then ended is as follows:



	2017				2016
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Nonvested at January 1,	27,750		$	11.92	39,750		$	11.34
Granted during the period	—		—		—		—
Vested during the period	(1,000	)	10.85		(6,000	)	10.00
Forfeited during the period	(500	)	10.85		—		—
Nonvested at June 30,	26,250		$	11.98	33,750		$	11.58

As of June 30, 2017, December 31, 2016 and June 30, 2016, there was $54, $90, and $132, respectively, of total unrecognized compensation expense related to nonvested restricted stock units. The unamortized compensation expense as of June 30, 2017 is expected to be recognized over the remaining weighted average requisite service period of 0.74 years.

The fair value of non-performance-based stock options that were exercised during the six months ended June 30, 2017 and 2016 was $422 and $0, respectively. The fair value of restricted stock units that vested during the six months ended June 30, 2017 and 2016 was $26 and $97, respectively.

2014 Omnibus Plan

In September of 2014, the Company adopted an omnibus incentive plan or the 2014 Omnibus Plan (the “2014 Omnibus Plan”). The purpose of the 2014 Omnibus Plan is to align the long-term financial interests of the employees, directors, consultants and other service providers with those of the 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 the Company’s long-term performance and growth. To accomplish these goals, the 2014 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 the Company’s common stock that may be issued pursuant to grants or options under the 2014 Omnibus Plan is 1,000,000.

During the six months ended June 30, 2017 , the Company awarded 31,375 non-performance restricted stock units, 25,522 performance based restricted, and 65,440 non-performance-based stock options under the 2014 Omnibus Plan. During the six months ended June 30, 2016, the Company awarded 22,060 non-performance based restricted stock units, and 34,190 market condition restricted stock units, and 71,286 non-performance-based stock options under the 2014 Omnibus Plan.

The non-performance options generally vest equally over three years from the grant date. The performance-based restricted stock units include a market condition based on the Company’s total shareholder return relative to a market index that determines the number of restricted stock units that may vest equally over a three-year period from the date of grant.The non-performance restricted stock units fully vest over the requisite service period generally ranging from one to five years.

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 three and six months ended June 30, 2017, compensation expense for option awards granted under the 2014 Omnibus Plan was approximately $97 and $194, respectively. For the three and six months ended June 30, 2017, compensation expense for restricted stock unit awards granted under the 2014 Omnibus Plan was approximately $277 and $555 respectively.

For the three and six months ended June 30, 2016, compensation expense for option awards granted under the 2014 Omnibus Plan was approximately $53 and $104, respectively. For the three and six months ended June 30, 2016, compensation expense for restricted stock unit awards granted under the 2014 Omnibus Plan was approximately $159 and $302, respectively.

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 grants:



	For the Six Months Ended June 30,
	2017	2016
Dividend yield	0.00%	0.00%
Expected life	5.0 to 7.5 years	5.0 to 6.5 years
Expected volatility	32.10% to 37.55%	35.23% to 37.55%
Risk-free interest rate	1.06% to 2.32%	1.26% to 2.01%

The expected life is based on the 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 as well as the volatility of certain comparable public company peers. 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 the status of the Company’s stock options under the 2014 Omnibus Plan as of June 30, 2017 and 2016, and changes during the six months ended is as follows:



	2017					2016
	Non-performance-based Stock Options					Non-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 year	128,366		$	15.32	8.69 years	52,080	$	14.35	9.12 years
Granted during the period	65,440		26.89			71,286	15.88
Forfeited during the period	(3,465	)	21.24			—	—
Canceled during the period	—		—			—	—
Exercised during the period	(1,544	)	15.00			—	—
Outstanding at the end of period	188,797		$	19.22	8.63 years	123,366	$	15.23	9.16 years
Options exercisable at end of period	51,204		$	14.96	7.93 years	14,693	$	14.17	8.51 years
Weighted average fair value of options granted during the period			$	10.22			$	6.09

As of June 30, 2017, December 31, 2016 and June 30, 2016 the aggregate intrinsic value was $1,342, $1,462 and $97, respectively, for outstanding stock options under the 2014 Omnibus Plan. As of June 30, 2017, December 31, 2016 and June 30, 2016 the aggregate intrinsic value was $582, $203, and $27, respectively, for exercisable stock options outstanding under the 2014 Omnibus Plan.

A summary of the status of the Company’s non-performance based restricted stock units under the 2014 Omnibus Plan as of June 30, 2017 and 2016, and changes during the six months ended is as follows:



	2017				2016
	Non-performance Based				Non-performance Based
	Restricted Stock Units				Restricted Stock Units
	Units		Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Nonvested at January 1,	67,956		$	13.79	70,919		$	13.29
Granted during the period	31,375		27.49		22,060		15.63
Vested during the period	(8,475	)	25.42		(5,476	)	16.07
Forfeited during the period	(2,250	)	27.93		—		—
Nonvested at June 30,	88,606		$	17.17	87,503		$	13.70

A summary of the status of the Company’s performance based restricted stock units under the 2014 Omnibus Plan as of June 30, 2017 and 2016, and changes during the six months ended is as follows:



	2017				2016
	Performance Based				Performance Based
	Restricted Stock Units				Restricted Stock Units
	Units		Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Nonvested at January 1,	51,197		$	8.72	25,474		$	9.45
Granted during the period	25,522		24.34		34,190		9.52
Vested during the period	(19,861	)	15.34		(8,467	)	14.17
Forfeited during the period	(2,014	)	15.68		—		—
Nonvested at June 30,	54,844		$	13.33	51,197		$	8.72

As of June 30, 2017, December 31, 2016 and June 30, 2016 there was $881, $425 and $507 of total unrecognized compensation expense related to options awarded under the 2014 Omnibus Plan, respectively. As of June 30, 2017, December 31, 2016 and June 30, 2016 there was $1,923, $1,089 and $1,348 of total unrecognized compensation related to restricted stock units awarded under the 2014 Omnibus Plan, respectively.

The fair value of the exercised non-performance-based stock options, vested non-performance restricted stock units, and vested performance based restricted stock units during the six months ended June 30, 2017 was $41, $233, and $530, respectively. For the same period in 2016 the fair value of exercised non-performance-based stock options, vested non-performance restricted stock units, and vested performance based restricted stock units was $0, $87, and $137, respectively.

The compensation expense related to these options and restricted stock units is expected to be recognized over the remaining weighted average requisite service periods of 2.45 and 2.44 years, respectively.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Significant Concentrations of Credit Risk	6 Months Ended
Significant Concentrations of Credit Risk	Jun. 30, 2017
Risks and Uncertainties [Abstract]
Significant Concentrations of Credit Risk	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.

Capital Requirements and Restrictions on Retained Earnings

6 Months Ended

Jun. 30, 2017

Banking and Thrift [Abstract]

Capital Requirements and Restrictions on Retained Earnings

Under U.S. 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 Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

In July 2013, the Federal Reserve published final rules for the adoption of the Basel III regulatory capital framework (the “Basel III Capital Rules”). The Basel III Capital Rules, among other things, (i) introduce a new capital measure called “Common Equity Tier 1” (“CET1”), (ii) specify that Tier 1 capital consist of Common Equity Tier 1 and “Additional Tier 1 Capital” instruments meeting specified requirements, (iii) define Common Equity Tier 1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to Common Equity Tier 1 and not to the other components of capital and (iv) expand the scope of the deductions/adjustments as compared to existing regulations. The Basel III Capital Rules became effective for the Company on January 1, 2015 with certain transition provisions to be fully phased in by January 1, 2019.

Starting in January 2016, the implementation of the capital conservation buffer became effective for the Company starting at the 0.625% level and increasing 0.625% each year thereafter, until it reaches 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. Failure to meet the full amount of the buffer will result in restrictions on the Company’s ability to make capital distributions, including dividend payments and stock repurchases, and to pay discretionary bonuses to executive officers.

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, CET1 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 June 30, 2017 and December 31, 2016 that the Company and the Bank met all capital adequacy requirements to which they were subject.

As of June 30, 2017 and December 31, 2016, the Company’s and 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 Company and the Bank must maintain minimum total risk-based, CET1, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since June 30, 2017 that management believes have changed the Company’s categorization as “well capitalized.”

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 of June 30, 2017
Total capital (to risk-weighted assets)
Company	$	236,955	18.92	%	$	100,192	8.0	%	n/a		n/a
Bank	139,381		11.14	%	100,094		8.0	%	$	125,118	10.0	%
Tier 1 capital (to risk-weighted assets)
Company	222,269		17.75	%	75,133		6.0	%	n/a		n/a
Bank	129,642		10.36	%	75,082		6.0	%	100,110		8.0
Common equity tier 1 to risk-weighted assets
Company	219,176		17.50	%	56,360		4.5	%	n/a		n/a
Bank	129,642		10.36	%	56,312		4.5	%	81,339		6.5
Tier 1 capital (to average assets)
Company	222,269		15.09	%	58,918		4.0	%	n/a		n/a
Bank	129,642		8.81	%	58,861		4.0	%	73,577		5.0
As of December 31, 2016
Total capital (to risk-weighted assets)
Company	$	228,566	22.02	%	$	83,039	8.0	%	n/a		n/a
Bank	130,237		12.55	%	83,020		8.0	%	$	103,775	10.0	%
Tier 1 capital (to risk-weighted assets)
Company	215,057		20.72	%	62,275		6.0	%	n/a		n/a
Bank	121,713		11.73	%	62,257		6.0	%	83,010		8.0
Common equity tier 1 to risk-weighted assets
Company	211,964		20.42	%	46,711		4.5	%	n/a		n/a
Bank	121,713		11.73	%	46,693		4.5	%	67,445		6.5
Tier 1 capital (to average assets)
Company	$	215,057	16.82	%	51,143		4.0	%	n/a		n/a
Bank	121,713		9.52	%	51,140		4.0	%	63,925		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

Business Combinations	6 Months Ended
Business Combinations	Jun. 30, 2017
Business Combinations [Abstract]
Business Combinations	Business Combinations Pending Merger with Sovereign Bancshares, Inc. On December 14, 2016, the Company entered into a definitive agreement ("the merger agreement") with Dallas-based Sovereign Bancshares, Inc. ("Sovereign") and its wholly-owned subsidiary Sovereign Bank. The merger agreement provides for the merger of Spartan Merger Sub, Inc., a wholly owned subsidiary of the Company, with and into Sovereign. Following the merger, Sovereign will merge with and into the Company with the Company surviving and Sovereign Bank will merge with and into Veritex Community Bank with Veritex Community Bank surviving. As of June 30, 2017, Sovereign reported, on a consolidated basis, total assets of $1.0 billion and total deposits of $813.0 million. Upon the completion of the proposed merger with Sovereign, the Company expects to acquire Sovereign’s seven additional branches in the Dallas-Forth Worth metroplex, two branches in the Austin, Texas metropolitan area and one branch in the Houston, Texas metropolitan area. Under the terms of the merger agreement, the Company will issue 5,117,647 shares of its common stock and will pay approximately $58.0 million in cash for all of the shares of Sovereign’s common stock, subject to certain conditions and potential adjustments as described in the merger agreement. Additionally, under the terms of the merger agreement, each of Sovereign’s 24,500 shares of senior Non-Cumulative Perpetual Preferred Stock, Series C, no par value (“Sovereign SBLF Preferred Stock”) issued and outstanding immediately prior to the effective time shall be converted into one share of Senior Non-Cumulative Perpetual, Series D preferred stock of the Company (“Veritex Series D Preferred Stock”). Each share of the Veritex Series D Preferred Stock would provide the same rights, preferences, privileges and voting powers, and be subject to the same limitations and restrictions, as Sovereign SBLF Preferred Stock, taken as a whole, existing immediately prior to the consummation of the merger. In connection with consummation of the transaction, the merger agreement provides that two representatives of Sovereign’s board of directors will join the Company’s board of directors. The merger agreement contains customary representations, warranties and covenants by the Company and Sovereign. On April 6, 2017, the Company and Sovereign each held a special meeting of its shareholders where the Company’s shareholders approved the issuance of the shares of common stock and Sovereign’s shareholders approved the merger agreement. On July 7, 2017, the Company received the regulatory approval from the Board of Governors of the Federal Reserve System and the merger is expected to close on or about August 1, 2017, subject to the satisfaction or waiver of the customary closing conditions outlined in the merger agreement.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1524-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4922-128472

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4934-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4926-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=73530397&loc=SL65897772-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Veritex and the Bank as its wholly-owned subsidiary. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“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 condensed consolidated financial position at June 30, 2017 and December 31, 2016, condensed consolidated results of operations for the three and six months ended June 30, 2017 and 2016, condensed consolidated stockholders’ equity for the six months ended June 30, 2017 and 2016 and condensed consolidated cash flows for the six months ended June 30, 2017 and 2016. 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, 2016 included within the Company’s Form 10-K as filed with the Securities and Exchange Commission on March 10, 2017. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated 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.
Segment Reporting	Segment Reporting The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent on the other and assessed based on how each of the activities of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit. The Company’s chief operating decision-maker, the CEO, uses the consolidated results to make operating and strategic decisions.
Reclassifications	Reclassifications Effective January 1, 2017, the Company adopted ASU 2016-09. Per ASU 2016-09 cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity and for presentation purposes be applied retrospectively. For the six months ended June 30, 2016, the Company moved these costs from the accrued interest receivable and other assets line item in the cash flows from operating activities to the costs from issuance of stock related to stock-based awards line item on the cash flows from financing activities section on the cash flow statement.
Earnings Per Share	Earnings Per Share Earnings per share (“EPS”) are based upon the weighted-average shares outstanding.
Recent Accounting Pronouncements	Recent Accounting Pronouncements ASU 2017-04 “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”) eliminates Step 2 from the goodwill impairment test. In addition, the amendment eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. For pubic companies, ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements. ASU 2016-18 “Statement of Cash Flows (Topic 230): Restricted Cash” (“ASU 2016-18”) requires that the statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. For public companies, ASU 2016-18 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements. ASU 2016-13 “Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This Accounting Standards Update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods therein. The Company is continuing to evaluate the impact of the adoption of ASU 2016-03 and is uncertain of the impact on the consolidated financial statements at this point in time. ASU 2016-09 “Compensation —Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”) simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Per ASU 2016-09: (1) all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit in the income statement, rather than in additional paid-in capital under current guidance; (2) excess tax benefits should be classified along with other income tax cash flows as an operating activity on the statement of cash flows, rather than as a separate cash inflow from financing activities and cash outflow from operating activities under current guidance; (3) cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity; and (4) an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, as under current guidance, or account for forfeitures when they occur. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods therein. Effective January 1, 2017, the Company adopted ASU 2016-09. For the three and six months ended June 30, 2017, the Company recognized an excess income tax benefit of $42 and $214 that reduced the income tax provision and increased net income on the condensed consolidated statements of income. The Company prospectively applied the guidance for the presentation of excess tax benefits as an operating cash flow and included the $214 excess income tax benefit as an operating activity on the condensed consolidated statement of cash flows for the six months ended June 30, 2017. In addition, the Company retrospectively applied the guidance for the presentation of the cash paid by an employer when directly withholding shares for tax-withholding purposes be classified as a financing activity on the condensed consolidated statement of cash flows for the six months ended June 30, 2017 and 2016. Finally, the Company elected to account for forfeitures as they occur. ASU 2016-02 “Leases (Topic 842)” (“ASU 2016-02”) is intended to improve the reporting of leasing transactions to provide users of financial statements with more decision-useful information. ASU 2016-02 will require organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements. ASU 2016-01 “Financial Instruments─Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”) amends certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. This update will be effective for the Company on January 1, 2018. The Company is in process of evaluating the impact of this pronouncement, which is not expected to have a significant impact on the consolidated financial statements. ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 establishes a five-step model which entities must follow to recognize revenue and removes inconsistencies and weaknesses in existing guidance. The original effective date for ASU 2014-09 was for annual and interim periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU 2015-14, which deferred the effective date by one year, therefore it is now effective for interim and annual reporting periods beginning after December 15, 2017. The Company will adopt the guidance in the first quarter of 2018 using the modified retrospective application with a cumulative-effect adjustment, if such adjustment is significant. While the guidance will replace most existing revenue recognition guidance in GAAP, the ASU is not applicable to financial instruments and, therefore, will not impact a majority of the Company’s revenue, including net interest income. Our implementation efforts to date include identification of revenue streams within the scope of the guidance, and we have begun evaluation of revenue contracts and related accounting policies.

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Schedule of Reconciliation Between Weighted Average Shares Used for Calculating Basic and Diluted EPS

The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the three and six months ended June 30, 2017 and 2016:



	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Earnings (numerator)
Net income	$	3,615	$	3,173	$	6,713	$	5,986
Shares (denominator)
Weighted average shares outstanding for basic EPS (thousands)	15,211		10,696		15,205		10,695
Dilutive effect of employee stock-based awards	426		298		428		283
Adjusted weighted average shares outstanding	15,637		10,994		15,633		10,978
Earnings per share:
Basic	$	0.24	$	0.30	$	0.44	$	0.56
Diluted	$	0.23	$	0.29	$	0.43	$	0.55

Statement of Cash Flows (Tables)

6 Months Ended

Jun. 30, 2017

Supplemental Cash Flow Elements [Abstract]

Schedule of Other Supplemental Cash Flow Information

Other supplemental cash flow information is presented below:



	Six Months Ended June 30,
	2017		2016
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	3,745	$	2,329
Cash paid for income taxes	3,500		4,650
Supplemental Disclosures of Non-Cash Flow Information:
Net foreclosure of other real estate owned and repossessed assets	$	—	$	114

Investment Securities (Tables)

6 Months Ended

Jun. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Schedule of Carrying Amount and Approximate Fair Values of Available-for-Sale Securities

The carrying amount of securities and their approximate fair values are as follows:



	June 30, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for Sale
U.S. government agencies	$	691	$	—	$	10	$	681
Corporate securities	7,500		197		—		$	7,697
Municipal securities	14,914		42		126		14,830
Mortgage-backed securities	65,814		115		340		65,589
Collateralized mortgage obligations	45,370		158		316		45,212
Asset-backed securities	688		11		—		699
	$	134,977	$	523	$	792	$	134,708



	December 31, 2016
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Available for Sale
U.S. government agencies	$	732	$	—	$	36	$	696
Municipal securities	14,540		2		500		14,042
Mortgage-backed securities	49,907		83		871		49,119
Collateralized mortgage obligations	38,507		32		612		37,927
Asset-backed securities	764		11		—		775
	$	104,450	$	128	$	2,019	$	102,559

Schedule of Investment Securities That Have Been in a Continuous Unrealized Loss Position



	June 30, 2017
	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	$	—	$	—	$	681	$	10	$	681	$	10
Municipal securities	7,052		107		1,346		19		8,398		126
Mortgage-backed securities	42,127		289		3,937		51		46,064		340
Collateralized mortgage obligations	28,283		293		1,473		23		29,756		316
	$	77,462	$	689	$	7,437	$	103	$	84,899	$	792



	December 31, 2016
	Less Than 12 Months				12 Months or More				Totals
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Loss		Value		Loss		Value		Loss
Available for Sale
U.S. government agencies	$	—	$	—	$	696	$	36	$	696	$	36
Municipal securities	12,060		478		518		22		12,578		500
Mortgage-backed securities	37,274		802		6,848		69		44,122		871
Collateralized mortgage obligations	29,618		584		1,618		28		31,236		612
	$	78,952	$	1,864	$	9,680	$	155	$	88,632	$	2,019

Schedule of Amortized Costs and Estimated Fair Values of Securities Available for Sale, By Contractual Maturity



	June 30, 2017
	Available For Sale
	Amortized Cost		Fair Value
Due in one year or less	$	—	$	—
Due from one year to five years	3,928		3,952
Due from five years to ten years	4,504		4,435
Due after ten years	7,173		7,124
	15,605		15,511
Corporate securities	7,500		7,697
Mortgage-backed securities	65,814		65,589
Collateralized mortgage obligations	45,370		45,212
Asset-backed securities	688		699
	$	134,977	$	134,708



	December 31, 2016
	Available For Sale
	Amortized Cost		Fair Value
Due in one year or less	$	—	$	—
Due from one year to five years	4,009		3,974
Due from five years to ten years	3,522		3,346
Due after ten years	7,741		7,418
	15,272		14,738
Mortgage-backed securities	49,907		49,119
Collateralized mortgage obligations	38,507		37,927
Asset-backed securities	764		775
	$	104,450	$	102,559

Schedule of Proceeds From Sales of Investment Securities Available for Sale and Gross Gains and Losses

Proceeds from sales of investment securities available for sale and gross gains and losses for the six months ended June 30, 2017 and 2016 were as follows:



	Six Months Ended June 30,
	2017		2016
Proceeds from sales	$	—	$	8,378
Gross realized gains	—		43
Gross realized losses	—		40

Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Summary of Loans in the Accompanying Consolidated Balance Sheets

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



	June 30, 2017			December 31, 2016
Real estate:
Construction and land	$	136,332		$	162,614
Farmland	8,448			8,262
1 - 4 family residential	157,823			140,137
Multi-family residential	38,265			14,683
Commercial Real Estate	430,895			370,696
Commercial	347,017			291,416
Consumer	3,688			4,089
	1,122,468			991,897
Deferred loan fees	(40		)	(55		)
Allowance for loan losses	(9,740		)	(8,524		)
	$	1,112,688		$	983,318

Schedule of Non-Accrual Loans

Non-accrual loans aggregated by class of loans, as of June 30, 2017 and December 31, 2016, are as follows:



	June 30, 2017		December 31, 2016
Real estate:
Construction and land	$	—	$	—
Farmland	—		—
1 - 4 family residential	—		—
Multi-family residential	—		—
Commercial Real Estate	727		—
Commercial	778		930
Consumer	9		11
	$	1,514	$	941

Schedule of Age Analysis of Past Due Loans, Aggregated by Class of Loans

An aging analysis of past due loans, aggregated by class of loans, as of June 30, 2017 and December 31, 2016 is as follows:



	June 30, 2017
	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	$	492	$	—	$	—	$	492	$	135,840	$	136,332	$	—
Farmland	—		—		—		—		8,448		8,448		—
1 - 4 family residential	815		—		—		815		157,008		157,823		—
Multi-family residential	—		—		—		—		38,265		38,265		—
Commercial Real Estate	—		—		727		727		430,168		430,895		—
Commercial	137		392		781		1,310		345,707		347,017		15
Consumer	9		—		—		9		3,679		3,688		—
	$	1,453	$	392	$	1,508	$	3,353	$	1,119,115	$	1,122,468	$	15



	December 31, 2016
	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	$	1,047	$	—	$	—	$	1,047	$	161,567	$	162,614	$	—
Farmland	—		—		—		—		8,262		8,262		—
1 - 4 family residential	510		214		—		724		139,413		140,137		—
Multi-family residential	—		—		—		—		14,683		14,683		—
Commercial Real Estate	—		—		754		754		369,942		370,696		754
Commercial	1,344		438		532		2,314		289,102		291,416		81
Consumer	41		—		—		41		4,048		4,089		—
	$	2,942	$	652	$	1,286	$	4,880	$	987,017	$	991,897	$	835

Summary of Impaired Loans, Including Purchased Credit Impaired Loans and TDRs

Impaired loans, including purchased credit impaired (“PCI”) loans and TDRs, at June 30, 2017 and December 31, 2016 are summarized in the following tables.



	June 30, 2017
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment YTD
Real estate:
Construction and land	$	—	$	—	$	—	$	—	$	—	$	—
Farmland	—		—		—		—		—		—
1 - 4 family residential	163		163		—		163		—		212
Multi-family residential	—		—		—		—		—		—
Commercial Real Estate	1,104		1,104		—		1,104		—		1,140
Commercial	793		540		253		793		137		886
Consumer	86		77		9		86		1		89
Total	$	2,146	$	1,884	$	262	$	2,146	$	138	$	2,327



	December 31, 2016
	Unpaid Contractual Principal Balance		Recorded Investment with No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment YTD
Real estate:
Construction and land	$	—	$	—	$	—	$	—	$	—	$	—
Farmland	—		—		—		—		—		—
1 - 4 family residential	164		164		—		164		—		265
Multi-family residential	—		—		—		—		—		—
Commercial Real Estate	382		382		—		382		—		440
Commercial	955		381		574		955		246		463
Consumer	92		81		11		92		4		12
Total	$	1,593	$	1,008	$	585	$	1,593	$	250	$	1,180

Summary of Internal Ratings of Loans, Including Purchased Credit Impaired Loans

The following tables summarize the Company’s internal ratings of its loans, including purchased credit impaired loans, as of June 30, 2017 and December 31, 2016:



	June 30, 2017
	Pass		Special Mention		Substandard		Doubtful		Total
Real estate:
Construction and land	$	136,332	$	—	$	—	$	—	$	136,332
Farmland	8,448		—		—		—		8,448
1 - 4 family residential	157,564		—		259		—		157,823
Multi-family residential	38,265		—		—		—		38,265
Commercial Real Estate	424,247		5,358		1,290		—		430,895
Commercial	338,701		6,990		1,210		116		347,017
Consumer	3,672		—		16		—		3,688
Total	$	1,107,229	$	12,348	$	2,775	$	116	$	1,122,468



	December 31, 2016
	Pass		Special Mention		Substandard		Doubtful		Total
Real estate:
Construction and land	$	162,614	$	—	$	—	$	—	$	162,614
Farmland	8,262		—		—		—		8,262
1 - 4 family residential	139,212		710		215		—		140,137
Multi-family residential	14,683		—		—		—		14,683
Commercial Real Estate	368,370		2,326		—		—		370,696
Commercial	289,589		686		1,034		107		291,416
Consumer	4,078		—		11		—		4,089
Total	$	986,808	$	3,722	$	1,260	$	107	$	991,897

Schedule of Analysis of the Allowance for Loan Losses

An analysis of the allowance for loan losses for the six months ended June 30, 2017 and 2016 and year ended December 31, 2016 is as follows:



	Six Months Ended June 30, 2017			Year Ended December 31, 2016			Six Months Ended June 30, 2016
Balance at beginning of year	$	8,524		$	6,772		$	6,772
Provision charged to earnings	1,833			2,050			1,372
Charge-offs	(622		)	(333		)	(249		)
Recoveries	5			35			15
Net charge-offs	(617		)	(298		)	(234		)
Balance at end of year	$	9,740		$	8,524		$	7,910

Summary of Activity in the Allowance for Loan Losses by Class of Loans

The following tables summarize the activity in the allowance for loan losses by portfolio segment for the periods indicated:



	For the Six Months Ended June 30, 2017
	Real Estate
	Construction, Land and Farmland			Residential			Commercial Real Estate		Commercial			Consumer			Total
Balance at beginning of period	$	1,415		$	1,116		$	3,003	$	2,955		$	35		$	8,524
Provision (recapture) charged to earnings	(291		)	370			554		1,205			(5		)	1,833
Charge-offs	—			(11		)	—		(611		)	—			(622		)
Recoveries	—			—			—		5			—			5
Net charge-offs (recoveries)	—			(11		)	—		(606		)	—			(617		)
Balance at end of period	$	1,124		$	1,475		$	3,557	$	3,554		$	30		$	9,740
Period-end amount allocated to:
Specific reserves:
Impaired loans	$	—		$	—		$	—	$	137		$	1		$	138
Total specific reserves	—			—			—		137			1			138
General reserves	1,124			1,475			3,557		3,417			29			9,602
Total	$	1,124		$	1,475		$	3,557	$	3,554		$	30		$	9,740



	For the Year Ended December 31, 2016
	Real Estate
	Construction, Land and Farmland		Residential			Commercial Real Estate		Commercial			Consumer			Total
Balance at beginning of period	$	1,104	$	1,124		$	2,189	$	2,324		$	31		$	6,772
Provision (recapture) charged to earnings	311		(8		)	814		913			20			2,050
Charge-offs	—		—			—		(314		)	(19		)	(333		)
Recoveries	—		—			—		32			3			35
Net charge-offs (recoveries)	—		—			—		(282		)	(16		)	(298		)
Balance at end of period	$	1,415	$	1,116		$	3,003	$	2,955		$	35		$	8,524
Period-end amount allocated to:
Specific reserves:
Impaired loans	$	—	$	—		$	—	$	246		$	4		$	250
Total specific reserves	—		—			—		246			4			250
General reserves	1,415		1,116			3,003		2,709			31			8,274
Total	$	1,415	$	1,116		$	3,003	$	2,955		$	35		$	8,524



	For the Six Months Ended June 30, 2016
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial			Consumer			Total
Balance at beginning of year	$	1,104	$	1,124	$	2,189	$	2,324		$	31		$	6,772
Provision (recapture) charged to earnings	286		67		397		618			4			1,372
Charge-offs	—		—		—		(240		)	(9		)	(249		)
Recoveries	—		—		—		14			1			15
Net charge-offs (recoveries)	—		—		—		(226		)	(8		)	(234		)
Balance at end of year	$	1,390	$	1,191	$	2,586	$	2,716		$	27		$	7,910
Period-end amount allocated to:
Specific reserves:
Impaired loans	$	—	$	—	$	—	$	80		$	4		$	84
Total specific reserves	—		—		—		80			4			84
General reserves	1,390		1,191		2,586		2,636			23			7,826
Total	$	1,390	$	1,191	$	2,586	$	2,716		$	27		$	7,910

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



	June 30, 2017
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial		Consumer		Total
Loans individually evaluated for impairment	$	—	$	163	$	1,104	$	793	$	86	$	2,146
Loans collectively evaluated for impairment	144,780		195,925		429,791		346,224		3,602		1,120,322
Total	$	144,780	$	196,088	$	430,895	$	347,017	$	3,688	$	1,122,468



	December 31, 2016
	Real Estate
	Construction, Land and Farmland		Residential		Commercial Real Estate		Commercial		Consumer		Total
Loans individually evaluated for impairment	$	—	$	164	$	382	$	955	$	92	$	1,593
Loans collectively evaluated for impairment	170,876		154,656		370,314		290,461		3,997		990,304
Total	$	170,876	$	154,820	$	370,696	$	291,416	$	4,089	$	991,897

Schedule of Summary of Changes in Servicing Assets

At June 30, 2017, the Company was servicing loans of approximately $44,720. A summary of the changes in the related servicing assets are as follows:



	Six Months Ended June 30,
	2017			2016
Balance at beginning of year	$	601		$	426
Increase from loan sales	281			111
Amortization charged to income	(88		)	(55		)
Balance at end of period	$	794		$	482

Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

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
As of June 30, 2017
Investment securities available for sale	$	—	$	134,708	$	—	$	134,708
As of December 31, 2016
Investment securities available for sale	$	—	$	102,559	$	—	$	102,559

Schedule of Assets Measured at Fair Value on a Non-Recurring Basis



	Fair Value Measurements Using
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
As of June 30, 2017
Assets:
Impaired loans	$	—	$	—	$	2,008	$	2,008
As of December 31, 2016
Assets:
Impaired loans	$	—	$	—	$	1,343	$	1,343

Schedule of Significant Unobservable Inputs Used in the Fair Value Measurements

For Level 3 financial assets measured at fair value as of June 30, 2017 and December 31, 2016, the significant unobservable inputs used in the fair value measurements were as follows:



June 30, 2017
			Valuation	Unobservable	Weighted
Assets/Liabilities	Fair Value		Technique	Input(s)	Average
Impaired loans	$	2,008	Collateral Method	Adjustments for selling costs	8	%



December 31, 2016
			Valuation	Unobservable	Weighted
Assets/Liabilities	Fair Value		Technique	Input(s)	Average
Impaired loans	$	1,343	Collateral Method	Adjustments for selling costs	8	%

Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments

The estimated fair values and carrying values of all financial instruments under current authoritative guidance as of June 30, 2017 and December 31, 2016 were as follows:



	June 30,				December 31,
	2017				2016
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Financial assets:
Level 1 inputs:
Cash and cash equivalents	$	173,146	$	173,146	$	234,791	$	234,791
Level 2 inputs:
Investment securities	134,708		134,708		102,559		102,559
Loans held for sale	4,118		4,118		5,208		5,208
Accrued interest receivable	3,333		3,333		2,907		2,907
Bank-owned life insurance	20,369		20,369		20,077		20,077
Servicing asset	794		794		601		601
Non-marketable equity securities	7,407		7,407		7,366		7,366
Level 3 inputs:
Loans, net	1,112,688		1,120,692		983,318		987,021
Financial liabilities:
Level 2 inputs:
Deposits	$	1,211,107	$	1,158,631	$	1,119,630	$	1,085,888
Advances from FHLB	38,235		38,280		38,306		38,570
Accrued interest payable	125		125		141		141
Junior subordinated debentures	3,093		3,093		3,093		3,093
Subordinated notes	4,946		4,946		4,942		4,942

Financial Instruments with Off-Balance Sheet Risk (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of the Approximate Amounts of Financial Instruments with Off-Balance Sheet Risk

The following table sets forth the approximate amounts of these financial instruments as of June 30, 2017 and December 31, 2016:



	June 30,		December 31,
	2017		2016
Commitments to extend credit	$	269,863	$	236,919
Standby and commercial letters of credit	5,936		6,933
	$	275,799	$	243,852

Employee Benefits (Tables)

6 Months Ended

Jun. 30, 2017

Compensation and Retirement Disclosure [Abstract]

Summary of ESOP Shares

The following is a summary of ESOP shares as of June 30, 2017 and December 31, 2016:



	June 30,		December 31,
	2017		2016
Allocated shares	44,257		44,257
Unearned shares	18,783		18,783
Total ESOP shares	63,040		63,040
Fair value of unearned shares	$	495	$	502

Stock and Incentive Plan (Tables)

6 Months Ended

Jun. 30, 2017

2010 Stock Option and Equity Incentive Plan

Stock and Incentive Plans

Summary of Option Activity

A summary of option activity under the 2010 Incentive Plan for the six months ended June 30, 2017 and 2016, and changes during the period then ended is presented below:



	For the Six Months Ended June 30, 2017
	Non-performance-based Stock Options
	Shares Underlying Options		Weighted Exercise Price		Weighted Average Contractual Term
Outstanding at beginning of year	325,500		$	10.15	4.56 years
Granted during the period	—		—
Forfeited during the period	—		—
Canceled during the period	—		—
Exercised during the period	(15,000	)	10.00
Outstanding at the end of period	310,500		$	10.16	4.09 years
Options exercisable at end of period	297,000		$	10.12	4.00 years
Weighted average fair value of options granted during the period			$	—



	For the Six Months Ended June 30, 2016
	Non-performance-based Stock Options
	Shares Underlying Options	Weighted Exercise Price		Weighted Average Contractual Term
Outstanding at beginning of year	325,500	$	10.15	5.56 years
Granted during the period	—	—
Forfeited during the period	—	—
Exercised during the period	—	—
Outstanding at the end of period	325,500	$	10.15	5.06 years
Options exercisable at end of period	298,200	$	10.09	4.91 years
Weighted average fair value of options granted during the period		$	—

Summary of Status of the Company's Restricted Shares or Restricted Stock Units

A summary of the status of the Company’s restricted stock units under the 2010 Incentive Plan as of June 30, 2017 and 2016, and changes during the six months then ended is as follows:



	2017				2016
	Shares		Weighted Average Grant Date Fair Value		Shares		Weighted Average Grant Date Fair Value
Nonvested at January 1,	27,750		$	11.92	39,750		$	11.34
Granted during the period	—		—		—		—
Vested during the period	(1,000	)	10.85		(6,000	)	10.00
Forfeited during the period	(500	)	10.85		—		—
Nonvested at June 30,	26,250		$	11.98	33,750		$	11.58

Omnibus Plan

Stock and Incentive Plans

Summary of Option Activity

A summary of the status of the Company’s stock options under the 2014 Omnibus Plan as of June 30, 2017 and 2016, and changes during the six months ended is as follows:



	2017					2016
	Non-performance-based Stock Options					Non-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 year	128,366		$	15.32	8.69 years	52,080	$	14.35	9.12 years
Granted during the period	65,440		26.89			71,286	15.88
Forfeited during the period	(3,465	)	21.24			—	—
Canceled during the period	—		—			—	—
Exercised during the period	(1,544	)	15.00			—	—
Outstanding at the end of period	188,797		$	19.22	8.63 years	123,366	$	15.23	9.16 years
Options exercisable at end of period	51,204		$	14.96	7.93 years	14,693	$	14.17	8.51 years
Weighted average fair value of options granted during the period			$	10.22			$	6.09

Summary of Status of the Company's Restricted Shares or Restricted Stock Units



	2017				2016
	Non-performance Based				Non-performance Based
	Restricted Stock Units				Restricted Stock Units
	Units		Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Nonvested at January 1,	67,956		$	13.79	70,919		$	13.29
Granted during the period	31,375		27.49		22,060		15.63
Vested during the period	(8,475	)	25.42		(5,476	)	16.07
Forfeited during the period	(2,250	)	27.93		—		—
Nonvested at June 30,	88,606		$	17.17	87,503		$	13.70

A summary of the status of the Company’s performance based restricted stock units under the 2014 Omnibus Plan as of June 30, 2017 and 2016, and changes during the six months ended is as follows:



	2017				2016
	Performance Based				Performance Based
	Restricted Stock Units				Restricted Stock Units
	Units		Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Nonvested at January 1,	51,197		$	8.72	25,474		$	9.45
Granted during the period	25,522		24.34		34,190		9.52
Vested during the period	(19,861	)	15.34		(8,467	)	14.17
Forfeited during the period	(2,014	)	15.68		—		—
Nonvested at June 30,	54,844		$	13.33	51,197		$	8.72

Schedule of Assumptions Used to Measure Fair Value of Each Option Award Estimated On Grant Date Using Black-Scholes Option-Pricing Model

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 grants:



	For the Six Months Ended June 30,
	2017	2016
Dividend yield	0.00%	0.00%
Expected life	5.0 to 7.5 years	5.0 to 6.5 years
Expected volatility	32.10% to 37.55%	35.23% to 37.55%
Risk-free interest rate	1.06% to 2.32%	1.26% to 2.01%

Capital Requirements and Restrictions on Retained Earnings (Tables)

6 Months Ended

Jun. 30, 2017

Banking and Thrift [Abstract]

Schedule of Comparison of the Company's and Bank's Actual Capital Amounts and Ratios to Required Capital Amounts and Ratios

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 of June 30, 2017
Total capital (to risk-weighted assets)
Company	$	236,955	18.92	%	$	100,192	8.0	%	n/a		n/a
Bank	139,381		11.14	%	100,094		8.0	%	$	125,118	10.0	%
Tier 1 capital (to risk-weighted assets)
Company	222,269		17.75	%	75,133		6.0	%	n/a		n/a
Bank	129,642		10.36	%	75,082		6.0	%	100,110		8.0
Common equity tier 1 to risk-weighted assets
Company	219,176		17.50	%	56,360		4.5	%	n/a		n/a
Bank	129,642		10.36	%	56,312		4.5	%	81,339		6.5
Tier 1 capital (to average assets)
Company	222,269		15.09	%	58,918		4.0	%	n/a		n/a
Bank	129,642		8.81	%	58,861		4.0	%	73,577		5.0
As of December 31, 2016
Total capital (to risk-weighted assets)
Company	$	228,566	22.02	%	$	83,039	8.0	%	n/a		n/a
Bank	130,237		12.55	%	83,020		8.0	%	$	103,775	10.0	%
Tier 1 capital (to risk-weighted assets)
Company	215,057		20.72	%	62,275		6.0	%	n/a		n/a
Bank	121,713		11.73	%	62,257		6.0	%	83,010		8.0
Common equity tier 1 to risk-weighted assets
Company	211,964		20.42	%	46,711		4.5	%	n/a		n/a
Bank	121,713		11.73	%	46,693		4.5	%	67,445		6.5
Tier 1 capital (to average assets)
Company	$	215,057	16.82	%	51,143		4.0	%	n/a		n/a
Bank	121,713		9.52	%	51,140		4.0	%	63,925		5.0

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2017 USD ($) segment mortgage_office branch	Jun. 30, 2016 USD ($)
Nature of Organization:
Number of branches \| branch		11
Number of mortgage offices \| mortgage_office		1
Segment Reporting:
Number of reportable segment \| segment		1
Excess tax benefit realized on share-based payment awards	$ 42	$ 214
Excess tax benefit from stock compensation		$ 214	$ 0

Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings (numerator)
Net income	$ 3,615	$ 3,173	$ 6,713	$ 5,986
Shares (denominator)
Weighted average shares outstanding for basic EPS (thousands) (in shares)	15,211	10,696	15,205	10,695
Dilutive effect of employee stock based awards (in shares)	426	298	428	283
Adjusted weighted average shares outstanding (in shares)	15,637	10,994	15,633	10,978
Earnings per share:
Basic (in dollars per share)	$ 0.24	$ 0.30	$ 0.44	$ 0.56
Diluted (in dollars per share)	$ 0.23	$ 0.29	$ 0.43	$ 0.55

Summary of Significant Accounting Policies - Antidilutive Securities (Details) - shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Performance-based stock options
Earnings Per Share
Excluded from diluted EPS weighted average shares	0	117,624

Statement of Cash Flows - Other Supplemental Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$ 3,745	$ 2,329
Cash paid for income taxes	3,500	4,650
Supplemental Disclosures of Non-Cash Flow Information:
Net foreclosure of other real estate owned and repossessed assets	$ 0	$ 114

Investment Securities - Carrying Amount and Fair Values (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Available for Sale securities
Amortized Cost	$ 134,977	$ 104,450
Gross Unrealized Gains	523	128
Gross Unrealized Losses	792	2,019
Fair Value	134,708	102,559
U.S. government agencies
Available for Sale securities
Amortized Cost	691	732
Gross Unrealized Gains	0	0
Gross Unrealized Losses	10	36
Fair Value	681	696
Corporate securities
Available for Sale securities
Amortized Cost	7,500
Gross Unrealized Gains	197
Gross Unrealized Losses	0
Fair Value	7,697
Municipal securities
Available for Sale securities
Amortized Cost	14,914	14,540
Gross Unrealized Gains	42	2
Gross Unrealized Losses	126	500
Fair Value	14,830	14,042
Mortgage-backed securities
Available for Sale securities
Amortized Cost	65,814	49,907
Gross Unrealized Gains	115	83
Gross Unrealized Losses	340	871
Fair Value	65,589	49,119
Collateralized mortgage obligations
Available for Sale securities
Amortized Cost	45,370	38,507
Gross Unrealized Gains	158	32
Gross Unrealized Losses	316	612
Fair Value	45,212	37,927
Asset-backed securities
Available for Sale securities
Amortized Cost	688	764
Gross Unrealized Gains	11	11
Gross Unrealized Losses	0	0
Fair Value	$ 699	$ 775

Investment Securities - Unrealized Loss Position (Details) $ in Thousands	Jun. 30, 2017 USD ($) investment	Dec. 31, 2016 USD ($) investment
Fair Value
Less Than 12 Months, Fair Value	$ 77,462	$ 78,952
12 Months or More, Fair Value	7,437	9,680
Total Fair Value	84,899	88,632
Unrealized Loss
Less Than 12 Months, Unrealized Loss	689	1,864
12 Months or More, Unrealized Loss	103	155
Total Unrealized Loss	$ 792	$ 2,019
Number of investment positions in an unrealized loss position \| investment	64	72
U.S. government agencies
Fair Value
Less Than 12 Months, Fair Value	$ 0	$ 0
12 Months or More, Fair Value	681	696
Total Fair Value	681	696
Unrealized Loss
Less Than 12 Months, Unrealized Loss	0	0
12 Months or More, Unrealized Loss	10	36
Total Unrealized Loss	10	36
Municipal securities
Fair Value
Less Than 12 Months, Fair Value	7,052	12,060
12 Months or More, Fair Value	1,346	518
Total Fair Value	8,398	12,578
Unrealized Loss
Less Than 12 Months, Unrealized Loss	107	478
12 Months or More, Unrealized Loss	19	22
Total Unrealized Loss	126	500
Mortgage-backed securities
Fair Value
Less Than 12 Months, Fair Value	42,127	37,274
12 Months or More, Fair Value	3,937	6,848
Total Fair Value	46,064	44,122
Unrealized Loss
Less Than 12 Months, Unrealized Loss	289	802
12 Months or More, Unrealized Loss	51	69
Total Unrealized Loss	340	871
Collateralized mortgage obligations
Fair Value
Less Than 12 Months, Fair Value	28,283	29,618
12 Months or More, Fair Value	1,473	1,618
Total Fair Value	29,756	31,236
Unrealized Loss
Less Than 12 Months, Unrealized Loss	293	584
12 Months or More, Unrealized Loss	23	28
Total Unrealized Loss	$ 316	$ 612

Investment Securities - Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Amortized Cost
Due in one year or less	$ 0	$ 0
Due from one year to five years	3,928	4,009
Due from five years to ten years	4,504	3,522
Due after ten years	7,173	7,741
Total investment securities available for sale, single maturity date	15,605	15,272
Total investment securities available for sale, amortized cost basis	134,977	104,450
Fair Value
Due in one year or less	0	0
Due from one year to five years	3,952	3,974
Due from five years to ten years	4,435	3,346
Due after ten years	7,124	7,418
Total investment securities available for sale	15,511	14,738
Total investment securities available for sale, fair value	134,708	102,559
Corporate securities
Amortized Cost
Amortized cost	7,500
Fair Value
Fair value	7,697
Mortgage-backed securities
Amortized Cost
Amortized cost	65,814	49,907
Fair Value
Fair value	65,589	49,119
Collateralized mortgage obligations
Amortized Cost
Amortized cost	45,370	38,507
Fair Value
Fair value	45,212	37,927
Asset-backed securities
Amortized Cost
Amortized cost	688	764
Fair Value
Fair value	$ 699	$ 775

Investment Securities - Proceeds and Gross Gains/Losses (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Proceeds from sales of investment securities available for sale and gross gains and losses
Proceeds from sales	$ 0	$ 8,378,000
Gross realized gains	0	43,000
Gross realized losses	0	40,000
Calls of investment securities
Proceeds from sales of investment securities available for sale and gross gains and losses
Gross realized gains (losses)	$ 0	$ 12,000

Loans and Allowance for Loan Losses - Balance Sheet Summary (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Loans and Allowance for Loan Losses
Loans, gross	$ 1,122,468	$ 991,897
Deferred loan fees	(40)	(55)
Allowance for loan losses	(9,740)	(8,524)	$ (7,910)	$ (6,772)
Loans, net	1,112,688	983,318
Accretable discount related to loans acquired within a business combination	376	566
Commercial
Loans and Allowance for Loan Losses
Loans, gross	347,017	291,416
Allowance for loan losses	(3,554)	(2,955)	(2,716)	(2,324)
Consumer
Loans and Allowance for Loan Losses
Loans, gross	3,688	4,089
Allowance for loan losses	(30)	(35)	(27)	(31)
Construction and land \| Real estate
Loans and Allowance for Loan Losses
Loans, gross	136,332	162,614
Farmland \| Real estate
Loans and Allowance for Loan Losses
Loans, gross	8,448	8,262
Real estate \| Real estate
Loans and Allowance for Loan Losses
Loans, gross	196,088	154,820
Allowance for loan losses	(1,475)	(1,116)	(1,191)	(1,124)
Commercial Real Estate \| Real estate
Loans and Allowance for Loan Losses
Loans, gross	430,895	370,696
Allowance for loan losses	(3,557)	(3,003)	$ (2,586)	$ (2,189)
1 - 4 family residential \| Real estate \| Real estate
Loans and Allowance for Loan Losses
Loans, gross	157,823	140,137
Multi-family residential \| Real estate \| Real estate
Loans and Allowance for Loan Losses
Loans, gross	$ 38,265	$ 14,683

Loans and Allowance for Loan Losses - Nonaccrual (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Loans and Allowance for Loan Losses
Non-accrual loans	$ 1,514	$ 941
Commercial
Loans and Allowance for Loan Losses
Non-accrual loans	778	930
Consumer
Loans and Allowance for Loan Losses
Non-accrual loans	9	11
Construction and land \| Real estate
Loans and Allowance for Loan Losses
Non-accrual loans	0	0
Farmland \| Real estate
Loans and Allowance for Loan Losses
Non-accrual loans	0	0
Real estate \| 1 - 4 family residential \| Real estate
Loans and Allowance for Loan Losses
Non-accrual loans	0	0
Real estate \| Multi-family residential \| Real estate
Loans and Allowance for Loan Losses
Non-accrual loans	0	0
Commercial Real Estate \| Real estate
Loans and Allowance for Loan Losses
Non-accrual loans	$ 727	$ 0

Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Impaired Loans
Unpaid Contractual Principal Balance	$ 2,146	$ 1,593
Recorded Investment with No Allowance	1,884	1,008
Recorded Investment With Allowance	262	585
Total Recorded Investment	2,146	1,593
Related Allowance	138	250
Average Recorded Investment YTD	2,327	1,180
Commercial
Impaired Loans
Unpaid Contractual Principal Balance	793	955
Recorded Investment with No Allowance	540	381
Recorded Investment With Allowance	253	574
Total Recorded Investment	793	955
Related Allowance	137	246
Average Recorded Investment YTD	886	463
Consumer
Impaired Loans
Unpaid Contractual Principal Balance	86	92
Recorded Investment with No Allowance	77	81
Recorded Investment With Allowance	9	11
Total Recorded Investment	86	92
Related Allowance	1	4
Average Recorded Investment YTD	89	12
Construction and land \| Real estate
Impaired Loans
Unpaid Contractual Principal Balance	0	0
Recorded Investment with No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment YTD	0	0
Farmland \| Real estate
Impaired Loans
Unpaid Contractual Principal Balance	0	0
Recorded Investment with No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment YTD	0	0
Commercial Real Estate \| Real estate
Impaired Loans
Unpaid Contractual Principal Balance	1,104	382
Recorded Investment with No Allowance	1,104	382
Recorded Investment With Allowance	0	0
Total Recorded Investment	1,104	382
Related Allowance	0	0
Average Recorded Investment YTD	1,140	440
1 - 4 family residential \| Real estate \| Real estate
Impaired Loans
Unpaid Contractual Principal Balance	163	164
Recorded Investment with No Allowance	163	164
Recorded Investment With Allowance	0	0
Total Recorded Investment	163	164
Related Allowance	0	0
Average Recorded Investment YTD	212	265
Multi-family residential \| Real estate \| Real estate
Impaired Loans
Unpaid Contractual Principal Balance	0	0
Recorded Investment with No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment YTD	$ 0	$ 0

Loans and Allowance for Loan Losses - Troubled Debt Restructuring (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($) Loan	Jun. 30, 2016 Loan	Dec. 31, 2016 USD ($)
Receivables [Abstract]
Recorded investment in TDRs \| $	$ 653		$ 822
Number of loans modified as TDRs	0	0
Number of loans modified as TDRs for which there was a payment default	1	0

Loans and Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Credit Quality Indicators
Loans	$ 1,122,468	$ 991,897
Pass
Credit Quality Indicators
Loans	1,107,229	986,808
Special Mention
Credit Quality Indicators
Loans	12,348	3,722
Substandard
Credit Quality Indicators
Loans	2,775	1,260
Doubtful
Credit Quality Indicators
Loans	116	107
Commercial
Credit Quality Indicators
Loans	347,017	291,416
Commercial \| Pass
Credit Quality Indicators
Loans	338,701	289,589
Commercial \| Special Mention
Credit Quality Indicators
Loans	6,990	686
Commercial \| Substandard
Credit Quality Indicators
Loans	1,210	1,034
Commercial \| Doubtful
Credit Quality Indicators
Loans	116	107
Consumer
Credit Quality Indicators
Loans	3,688	4,089
Consumer \| Pass
Credit Quality Indicators
Loans	3,672	4,078
Consumer \| Special Mention
Credit Quality Indicators
Loans	0	0
Consumer \| Substandard
Credit Quality Indicators
Loans	16	11
Consumer \| Doubtful
Credit Quality Indicators
Loans	0	0
Construction and land \| Real estate
Credit Quality Indicators
Loans	136,332	162,614
Construction and land \| Real estate \| Pass
Credit Quality Indicators
Loans	136,332	162,614
Construction and land \| Real estate \| Special Mention
Credit Quality Indicators
Loans	0	0
Construction and land \| Real estate \| Substandard
Credit Quality Indicators
Loans	0	0
Construction and land \| Real estate \| Doubtful
Credit Quality Indicators
Loans	0	0
Farmland \| Real estate
Credit Quality Indicators
Loans	8,448	8,262
Farmland \| Real estate \| Pass
Credit Quality Indicators
Loans	8,448	8,262
Farmland \| Real estate \| Special Mention
Credit Quality Indicators
Loans	0	0
Farmland \| Real estate \| Substandard
Credit Quality Indicators
Loans	0	0
Farmland \| Real estate \| Doubtful
Credit Quality Indicators
Loans	0	0
Real estate \| Real estate
Credit Quality Indicators
Loans	196,088	154,820
Real estate \| 1 - 4 family residential \| Real estate
Credit Quality Indicators
Loans	157,823	140,137
Real estate \| 1 - 4 family residential \| Real estate \| Pass
Credit Quality Indicators
Loans	157,564	139,212
Real estate \| 1 - 4 family residential \| Real estate \| Special Mention
Credit Quality Indicators
Loans	0	710
Real estate \| 1 - 4 family residential \| Real estate \| Substandard
Credit Quality Indicators
Loans	259	215
Real estate \| 1 - 4 family residential \| Real estate \| Doubtful
Credit Quality Indicators
Loans	0	0
Real estate \| Multi-family residential \| Real estate
Credit Quality Indicators
Loans	38,265	14,683
Real estate \| Multi-family residential \| Real estate \| Pass
Credit Quality Indicators
Loans	38,265	14,683
Real estate \| Multi-family residential \| Real estate \| Special Mention
Credit Quality Indicators
Loans	0	0
Real estate \| Multi-family residential \| Real estate \| Substandard
Credit Quality Indicators
Loans	0	0
Real estate \| Multi-family residential \| Real estate \| Doubtful
Credit Quality Indicators
Loans	0	0
Commercial Real Estate \| Real estate
Credit Quality Indicators
Loans	430,895	370,696
Commercial Real Estate \| Real estate \| Pass
Credit Quality Indicators
Loans	424,247	368,370
Commercial Real Estate \| Real estate \| Special Mention
Credit Quality Indicators
Loans	5,358	2,326
Commercial Real Estate \| Real estate \| Substandard
Credit Quality Indicators
Loans	1,290	0
Commercial Real Estate \| Real estate \| Doubtful
Credit Quality Indicators
Loans	$ 0	$ 0

Loans and Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016
Analysis of allowance for loan losses
Balance at beginning of period	$ 8,524	$ 6,772	$ 6,772
Provision (recapture) charged to earnings	1,833	1,372	2,050
Charge-offs	(622)	(249)	(333)
Recoveries	5	15	35
Net charge-offs (recoveries)	(617)	(234)	(298)
Balance at end of period	9,740	7,910	8,524
Specific reserves:
Impaired loans				$ 138	$ 250	$ 84
Total specific reserves				138	250	84
General reserves				9,602	8,274	7,826
Total	8,524	6,772	6,772	$ 9,740	$ 8,524	$ 7,910
Allowance for loan losses (as a percent)				0.87%	0.86%	0.85%
Commercial
Analysis of allowance for loan losses
Balance at beginning of period	2,955	2,324	2,324
Provision (recapture) charged to earnings	1,205	618	913
Charge-offs	(611)	(240)	(314)
Recoveries	5	14	32
Net charge-offs (recoveries)	(606)	(226)	(282)
Balance at end of period	3,554	2,716	2,955
Specific reserves:
Impaired loans				$ 137	$ 246	$ 80
Total specific reserves				137	246	80
General reserves				3,417	2,709	2,636
Total	2,955	2,324	2,324	3,554	2,955	2,716
Consumer
Analysis of allowance for loan losses
Balance at beginning of period	35	31	31
Provision (recapture) charged to earnings	(5)	4	20
Charge-offs	0	(9)	(19)
Recoveries	0	1	3
Net charge-offs (recoveries)	0	(8)	(16)
Balance at end of period	30	27	35
Specific reserves:
Impaired loans				1	4	4
Total specific reserves				1	4	4
General reserves				29	31	23
Total	35	31	31	30	35	27
Construction, Land and Farmland \| Real estate
Analysis of allowance for loan losses
Balance at beginning of period	1,415	1,104	1,104
Provision (recapture) charged to earnings	(291)	286	311
Charge-offs	0	0	0
Recoveries	0	0	0
Net charge-offs (recoveries)	0	0	0
Balance at end of period	1,124	1,390	1,415
Specific reserves:
Impaired loans				0	0	0
Total specific reserves				0	0	0
General reserves				1,124	1,415	1,390
Total	1,415	1,104	1,104	1,124	1,415	1,390
Residential \| Real estate
Analysis of allowance for loan losses
Balance at beginning of period	1,116	1,124	1,124
Provision (recapture) charged to earnings	370	67	(8)
Charge-offs	(11)	0	0
Recoveries	0	0	0
Net charge-offs (recoveries)	(11)	0	0
Balance at end of period	1,475	1,191	1,116
Specific reserves:
Impaired loans				0	0	0
Total specific reserves				0	0	0
General reserves				1,475	1,116	1,191
Total	1,116	1,124	1,124	1,475	1,116	1,191
Commercial Real Estate \| Real estate
Analysis of allowance for loan losses
Balance at beginning of period	3,003	2,189	2,189
Provision (recapture) charged to earnings	554	397	814
Charge-offs	0	0	0
Recoveries	0	0	0
Net charge-offs (recoveries)	0	0	0
Balance at end of period	3,557	2,586	3,003
Specific reserves:
Impaired loans				0	0	0
Total specific reserves				0	0	0
General reserves				3,557	3,003	2,586
Total	$ 3,003	$ 2,189	$ 2,189	$ 3,557	$ 3,003	$ 2,586

Loans and Allowance for Loan Losses - Allowance, Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Allowance, impairment methodology
Loans individually evaluated for impairment	$ 2,146	$ 1,593
Loans collectively evaluated for impairment	1,120,322	990,304
Total Loans	1,122,468	991,897
Commercial
Allowance, impairment methodology
Loans individually evaluated for impairment	793	955
Loans collectively evaluated for impairment	346,224	290,461
Total Loans	347,017	291,416
Consumer
Allowance, impairment methodology
Loans individually evaluated for impairment	86	92
Loans collectively evaluated for impairment	3,602	3,997
Total Loans	3,688	4,089
Construction, Land and Farmland \| Real estate
Allowance, impairment methodology
Loans individually evaluated for impairment	0	0
Loans collectively evaluated for impairment	144,780	170,876
Total Loans	144,780	170,876
Residential \| Real estate
Allowance, impairment methodology
Loans individually evaluated for impairment	163	164
Loans collectively evaluated for impairment	195,925	154,656
Total Loans	196,088	154,820
Commercial Real Estate \| Real estate
Allowance, impairment methodology
Loans individually evaluated for impairment	1,104	382
Loans collectively evaluated for impairment	429,791	370,314
Total Loans	$ 430,895	$ 370,696

Loans and Allowance for Loan Losses - Servicing Assets (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Servicing Asset at Amortized Cost [Line Items]
Servicing asset	$ 44,720,000
Summary of changes in related servicing assets
Balance at beginning of year	601,000	$ 426,000
Increase from loan sales	281,000	111,000
Amortization charged to income	(88,000)	(55,000)
Balance at end of period	794,000	$ 482,000
Valuation allowance recorded	0
Interest receivable	3,333,000		$ 2,907,000
Interest-only strip
Summary of changes in related servicing assets
Interest receivable	$ 0		$ 0

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Income Tax Examination [Line Items]
Estimated annual effective tax rate (as a percent)	34.80%	34.10%	34.50%	34.10%
Effective tax rate (as a percent)	33.30%	34.10%	32.00%	33.90%
Excess tax benefit and other	$ 83		$ 255
Excess tax benefit realized on share-based payment awards	42		214
Net deferred tax asset					$ 3,467
Other assets
Income Tax Examination [Line Items]
Net deferred tax asset	3,452		3,452
Accrued interest payable and other liabilities
Income Tax Examination [Line Items]
Current tax liability	$ 94		$ 94
Current tax receivable					$ 91

Commitments and Contingencies (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating Leases
Rental expense on operating lease	$ 881	$ 684

Fair Value Disclosures - Recurring Basis (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Assets measured at fair value
Investment securities available for sale	$ 134,708,000		$ 102,559,000
Recurring
Assets measured at fair value
Investment securities available for sale	134,708,000		102,559,000
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 1 Inputs
Assets measured at fair value
Investment securities available for sale	0		0
Recurring \| Level 2 Inputs
Assets measured at fair value
Investment securities available for sale	134,708,000		102,559,000
Recurring \| Level 3 Inputs
Assets measured at fair value
Investment securities available for sale	$ 0		$ 0

Fair Value Disclosures - Non-recurring Basis (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Assets measured at fair value
Impaired loans, carrying value	$ 2,146,000	$ 1,593,000
Impaired loans, specific allowance	138,000	250,000
Non-recurring
Assets measured at fair value
Impaired loans	2,008,000	1,343,000
Liabilities measured at fair value	0	0
Non-recurring \| Level 1
Assets measured at fair value
Impaired loans	0	0
Non-recurring \| Level 2
Assets measured at fair value
Impaired loans	0	0
Non-recurring \| Level 3
Assets measured at fair value
Impaired loans	$ 2,008,000	$ 1,343,000

Fair Value Disclosures - Level 3 (Details) - Impaired loans - Collateral Method - Level 3 - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Significant unobservable inputs used in the fair value measurements
Fair Value	$ 2,008	$ 1,343
Weighted Average (as a percent)	8.00%	8.00%

Fair Value Disclosures - Financial Instruments (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Estimated fair values and carrying values of all financial instruments
Valuation allowance recorded for servicing assets	$ 0	$ 0
Maximum maturity period for Federal Home Loan Bank advances recorded at carrying value	90 days
Financial assets:
Investment securities	$ 134,708,000	102,559,000
Financial liabilities:
Junior subordinated debentures	3,093,000	3,093,000
Subordinated notes	4,946,000	4,942,000
Level 1 \| Carrying Amount
Financial assets:
Cash and cash equivalents	173,146,000	234,791,000
Level 1 \| Total Fair Value
Financial assets:
Cash and cash equivalents	173,146,000	234,791,000
Level 2 \| Carrying Amount
Financial assets:
Investment securities	134,708,000	102,559,000
Loans held for sale	4,118,000	5,208,000
Accrued interest receivable	3,333,000	2,907,000
Bank-owned life insurance	20,369,000	20,077,000
Servicing asset	794,000	601,000
Non-marketable equity securities	7,407,000	7,366,000
Financial liabilities:
Deposits	1,211,107,000	1,119,630,000
Advances from FHLB	38,235,000	38,306,000
Accrued interest payable	125,000	141,000
Junior subordinated debentures	3,093,000	3,093,000
Subordinated notes	4,946,000	4,942,000
Level 2 \| Total Fair Value
Financial assets:
Investment securities	134,708,000	102,559,000
Loans held for sale	4,118,000	5,208,000
Accrued interest receivable	3,333,000	2,907,000
Bank-owned life insurance	20,369,000	20,077,000
Servicing asset	794,000	601,000
Non-marketable equity securities	7,407,000	7,366,000
Financial liabilities:
Deposits	1,158,631,000	1,085,888,000
Advances from FHLB	38,280,000	38,570,000
Accrued interest payable	125,000	141,000
Junior subordinated debentures	3,093,000	3,093,000
Subordinated notes	4,946,000	4,942,000
Level 3 \| Carrying Amount
Financial assets:
Loans, net	1,112,688,000	983,318,000
Level 3 \| Total Fair Value
Financial assets:
Loans, net	$ 1,120,692,000	$ 987,021,000

Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financial instruments with off-balance sheet risk
Total commitments	$ 275,799	$ 243,852
Commitments to extend credit
Financial instruments with off-balance sheet risk
Total commitments	269,863	236,919
Standby and commercial letters of credit
Financial instruments with off-balance sheet risk
Total commitments	$ 5,936	$ 6,933

Employee Benefits (Details) - USD ($)	1 Months Ended	6 Months Ended
Employee Benefits (Details) - USD ($)	Jan. 31, 2014	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
ESOP
Matching contributions to 401(k) profit sharing Plan		$ 0	$ 0
Summary of ESOP shares
Allocated shares		44,257		44,257
Unearned shares		18,783		18,783
Total ESOP shares		63,040		63,040
Fair value of unearned shares		$ 495,000		$ 502,000
ESOP
ESOP
Amount borrowed	$ 500,000
Common stock shares purchased by ESOP (in shares)	46,082
Compensation expense		$ 57,000	$ 92,000

Stock and Incentive Plan - 2010 Plan (Details) - 2010 Stock Option and Equity Incentive Plan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2010
Stock and Incentive Plans
Number of shares authorized					1,000,000
Stock based compensation expense	$ 20	$ 29	$ 42	$ 57
Restricted shares
Stock and Incentive Plans
Number of shares authorized					100,000
Term of continuous service for vesting awards					4 years
Number of shares awarded			0	0
Fair value of vested restricted stock units			$ 26	$ 97
Stock option
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
Number of shares authorized					500,000
Number of shares awarded under stock options			0	0
Nonperformance-based stock options
Stock and Incentive Plans
Number of shares awarded under stock options			0	0
Fair value of exercised non-performance based options			$ 422	$ 0

Stock and Incentive Plan - 2010 Plan - Options (Details) - Nonperformance-based stock options - 2010 Stock Option and Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Shares Underlying Options
Outstanding at beginning of period (in shares)	325,500	325,500	325,500
Granted during the period (in shares)	0	0
Forfeited during the period (in shares)	0	0
Canceled during the period (in shares)	0
Exercised during the period (in shares)	(15,000)	0
Outstanding at the end of period (in shares)	310,500	325,500	325,500	325,500
Options exercisable at end of period (in shares)	297,000	298,200
Weighted Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 10.15	$ 10.15	$ 10.15
Granted during the period (in dollars per share)	0.00	0.00
Forfeited during the period (in dollars per share)	0.00	0.00
Canceled during the period (in dollars per share)	0.00
Exercised during the period (in dollars per share)	10.00	0.00
Outstanding at the end of period (in dollars per share)	10.16	10.15	$ 10.15	$ 10.15
Options exercisable at end of period (in dollars per share)	10.12	10.09
Weighted average fair value of options granted during the period (in dollars per share)	$ 0.00	$ 0.00
Weighted Average Contractual Term
Outstanding at beginning of period	4 years 1 month 2 days	5 years 22 days	4 years 6 months 22 days	5 years 6 months 22 days
Outstanding at the end of period	4 years 1 month 2 days	5 years 22 days	4 years 6 months 22 days	5 years 6 months 22 days
Options exercisable at end of period	4 years	4 years 10 months 28 days
Additional disclosures
Aggregate intrinsic value of outstanding stock options	$ 5,022	$ 1,911	$ 5,390
Aggregate intrinsic value of exercisable stock options	4,814	1,768	5,086
Unrecognized compensation expense	$ 15	$ 36	$ 21
Requisite service period to recognize compensation cost	1 year

Stock and Incentive Plan - 2010 Plan - Restricted Stock Units (Details) - Restricted stock units - 2010 Stock Option and Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Shares
Nonvested at the beginning of the period (in shares)	27,750	39,750
Granted during the period (in shares)	0	0
Vested during the period (in shares)	(1,000)	(6,000)
Forfeited during the period (in shares)	(500)	0
Nonvested at the end of the period (in shares)	26,250	33,750
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 11.92	$ 11.34
Granted during the period (in dollars per share)	0.00	0.00
Vested during the period (in dollars per share)	10.85	10.00
Forfeited during the period (in dollars per share)	10.85	0.00
Nonvested at the end of the period (in dollars per share)	$ 11.98	$ 11.58
Additional disclosures
Unrecognized compensation expense	$ 54	$ 132	$ 90
Requisite service period to recognize compensation cost	8 months 27 days

Stock and Incentive Plan - Omnibus Plan (Details) - Omnibus Plan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Sep. 30, 2014
Stock and Incentive Plans
Number of shares authorized					1,000,000
Non-performance based restricted stock units
Stock and Incentive Plans
Number of shares awarded			31,375	22,060
Non-performance based restricted stock units \| Equal annual installments, tranche one
Stock and Incentive Plans
Vesting period			3 years
Non-performance based restricted stock units \| No market condition \| Minimum
Stock and Incentive Plans
Vesting period			1 year
Non-performance based restricted stock units \| No market condition \| Maximum
Stock and Incentive Plans
Vesting period			5 years
Performance based restricted stock units
Stock and Incentive Plans
Number of shares awarded			25,522	34,190
Performance based restricted stock units \| Market condition based on the Company's total shareholder return relative to a market index
Stock and Incentive Plans
Vesting period			3 years
Stock option
Stock and Incentive Plans
Number of shares awarded under stock options			65,440	71,286
Stock based compensation expense	$ 97	$ 53	$ 194	$ 104
Market condition restricted stock units
Stock and Incentive Plans
Number of shares awarded				34,190
Restricted stock units
Stock and Incentive Plans
Stock based compensation expense	$ 277	$ 159	$ 555	$ 302

Stock and Incentive Plan - Omnibus Plan Black Scholes Assumptions - (Details) - Omnibus Plan	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
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%	0.00%
Expected volatility, minimum (as a percent)	32.10%	35.23%
Expected volatility, maximum (as a percent)	37.55%	37.55%
Risk-free interest rate, minimum (as a percent)	1.06%	1.26%
Risk-free interest rate, maximum (as a percent)	2.32%	2.01%
Minimum
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model
Expected life	5 years	5 years
Maximum
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model
Expected life	7 years 6 months	6 years 6 months

Stock and Incentive Plan - Omnibus Plan - Options (Details) - Omnibus Plan - Nonperformance-based stock options - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Shares Underlying Options
Outstanding at beginning of period (in shares)	128,366	52,080	52,080
Granted during the period (in shares)	65,440	71,286
Forfeited during the period (in shares)	(3,465)	0
Canceled during the period (in shares)	0	0
Exercised during the period (in shares)	(1,544)	0
Outstanding at the end of period (in shares)	188,797	123,366	128,366	52,080
Options exercisable at end of period (in shares)	51,204.29	14,693
Weighted Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 15.32	$ 14.35	$ 14.35
Granted during the period (in dollars per share)	26.89	15.88
Forfeited during the period (in dollars per share)	21.24	0.00
Canceled during the period (in dollars per share)	0.00	0.00
Exercised during the period (in dollars per share)	15.00	0.00
Outstanding at the end of period (in dollars per share)	19.22	15.23	$ 15.32	$ 14.35
Options exercisable at end of period (in dollars per share)	14.96	14.17
Weighted average fair value of options granted during the period (in dollars per share)	$ 10.22	$ 6.09
Weighted Average Contractual Term
Outstanding at beginning of period	8 years 7 months 17 days	9 years 1 month 28 days	8 years 8 months 9 days	9 years 1 month 13 days
Outstanding at the end of period	8 years 7 months 17 days	9 years 1 month 28 days	8 years 8 months 9 days	9 years 1 month 13 days
Options exercisable at end of period	7 years 11 months 5 days	8 years 6 months 4 days
Additional disclosures
Aggregate intrinsic value of outstanding stock options	$ 1,342	$ 97	$ 1,462
Aggregate intrinsic value of exercisable stock options	$ 582	$ 27	$ 203

Stock and Incentive Plan - Omnibus Plan - Restricted Stock Units (Details) - Omnibus Plan - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Non-performance based restricted stock units
Units
Nonvested at the beginning of the period (in shares)	67,956	70,919
Granted during the period (in shares)	31,375	22,060
Vested during the period (in shares)	(8,475)	(5,476)
Forfeited during the period (in shares)	(2,250)	0
Nonvested at the end of the period (in shares)	88,606	87,503
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 13.79	$ 13.29
Granted during the period (in dollars per share)	27.49	15.63
Vested during the period (in dollars per share)	25.42	16.07
Forfeited during the period (in dollars per share)	27.93	0.00
Nonvested at the end of the period (in dollars per share)	$ 17.17	$ 13.70
Additional disclosures
Fair value of vested restricted stock units	$ 233	$ 87
Performance based restricted stock units
Units
Nonvested at the beginning of the period (in shares)	51,197	25,474
Granted during the period (in shares)	25,522	34,190
Vested during the period (in shares)	(19,861)	(8,467)
Forfeited during the period (in shares)	(2,014)	0
Nonvested at the end of the period (in shares)	54,844	51,197
Weighted Average Grant Date Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 8.72	$ 9.45
Granted during the period (in dollars per share)	24.34	9.52
Vested during the period (in dollars per share)	15.34	14.17
Forfeited during the period (in dollars per share)	15.68	0.00
Nonvested at the end of the period (in dollars per share)	$ 13.33	$ 8.72
Additional disclosures
Fair value of vested restricted stock units	$ 530	$ 137
Stock option
Additional disclosures
Unrecognized compensation expense	$ 881	507	$ 425
Requisite service period to recognize compensation cost	2 years 5 months 12 days
Restricted stock units
Additional disclosures
Unrecognized compensation expense	$ 1,923	1,348	$ 1,089
Requisite service period to recognize compensation cost	2 years 5 months 9 days
Nonperformance-based stock options
Additional disclosures
Fair value of exercised non-performance based options	$ 41	$ 0

Capital Requirements and Restrictions on Retained Earnings (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Total capital (to risk weighted assets)
Actual Amount	$ 236,955	$ 228,566
Actual Ratio (as a percent)	18.92%	22.02%
For Capital Adequacy Purposes Amount	$ 100,192	$ 83,039
For Capital Adequacy Purposes Ratio (as a percent)	8.00%	8.00%
Tier 1 capital (to risk weighted assets)
Actual Amount	$ 222,269	$ 215,057
Actual Ratio (as a percent)	17.75%	20.72%
For Capital Adequacy Purposes Amount	$ 75,133	$ 62,275
For Capital Adequacy Purposes Ratio (as a percent)	6.00%	6.00%
Common equity tier 1 to risk weighted assets
Actual Amount	$ 219,176	$ 211,964
Actual Ratio (as a percent)	17.50%	20.42%
For Capital Adequacy Purposes Amount	$ 56,360	$ 46,711
For Capital Adequacy Purposes Amount (as a percent)	4.50%	4.50%
Tier 1 capital (to average assets)
Actual Amount	$ 222,269	$ 215,057
Actual Ratio (as a percent)	15.09%	16.82%
For Capital Adequacy Purposes Amount	$ 58,918	$ 51,143
For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
Bank
Total capital (to risk weighted assets)
Actual Amount	$ 139,381	$ 130,237
Actual Ratio (as a percent)	11.14%	12.55%
For Capital Adequacy Purposes Amount	$ 100,094	$ 83,020
For Capital Adequacy Purposes Ratio (as a percent)	8.00%	8.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 125,118	$ 103,775
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	$ 129,642	$ 121,713
Actual Ratio (as a percent)	10.36%	11.73%
For Capital Adequacy Purposes Amount	$ 75,082	$ 62,257
For Capital Adequacy Purposes Ratio (as a percent)	6.00%	6.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 100,110	$ 83,010
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	8.00%	8.00%
Common equity tier 1 to risk weighted assets
Actual Amount	$ 129,642	$ 121,713
Actual Ratio (as a percent)	10.36%	11.73%
For Capital Adequacy Purposes Amount	$ 56,312	$ 46,693
For Capital Adequacy Purposes Amount (as a percent)	4.50%	4.50%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 81,339	$ 67,445
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	6.50%	6.50%
Tier 1 capital (to average assets)
Actual Amount	$ 129,642	$ 121,713
Actual Ratio (as a percent)	8.81%	9.52%
For Capital Adequacy Purposes Amount	$ 58,861	$ 51,140
For Capital Adequacy Purposes Ratio (as a percent)	4.00%	4.00%
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 73,577	$ 63,925
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	5.00%	5.00%

Business Combinations (Details) $ in Thousands	Aug. 01, 2017 USD ($) branch Representative shares	Jun. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Business Acquisition [Line Items]
Assets		$ 1,508,589	$ 1,408,507
Deposits		1,211,107	$ 1,119,630
Forecast \| Merger with Sovereign Bancshares, Inc.
Business Acquisition [Line Items]
Number of shares issued in connection with acquisition \| shares	5,117,647
Cash portion of acquisition	$ 58,000
Conversion ratio	1
Number of representatives from acquiree's board of directors to join Company's board of directors \| Representative	2
Sovereign Bancshares, Inc.
Business Acquisition [Line Items]
Assets		1,000,000
Deposits		$ 813,000
Sovereign Bancshares, Inc. \| Forecast \| Merger with Sovereign Bancshares, Inc.
Business Acquisition [Line Items]
Number of shares to be converted \| shares	24,500
Dallas-Fort Worth \| Forecast \| Merger with Sovereign Bancshares, Inc.
Business Acquisition [Line Items]
Number of bank branches acquired \| branch	7
Austin \| Forecast \| Merger with Sovereign Bancshares, Inc.
Business Acquisition [Line Items]
Number of bank branches acquired \| branch	2
Houston \| Forecast \| Merger with Sovereign Bancshares, Inc.
Business Acquisition [Line Items]
Number of bank branches acquired \| branch	1

Loans and Allowance for Loan Losses - Past Due (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	$ 3,353	$ 4,880
Total Current	1,119,115	987,017
Total Loans	1,122,468	991,897
Total 90 Days Past Due and Still Accruing	15	835
30 to 59 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	1,453	2,942
60 to 89 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	392	652
90 Days or Greater
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	1,508	1,286
Commercial
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	1,310	2,314
Total Current	345,707	289,102
Total Loans	347,017	291,416
Total 90 Days Past Due and Still Accruing	15	81
Commercial \| 30 to 59 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	137	1,344
Commercial \| 60 to 89 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	392	438
Commercial \| 90 Days or Greater
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	781	532
Consumer
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	9	41
Total Current	3,679	4,048
Total Loans	3,688	4,089
Total 90 Days Past Due and Still Accruing	0	0
Consumer \| 30 to 59 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	9	41
Consumer \| 60 to 89 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Consumer \| 90 Days or Greater
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Construction and land \| Real estate
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	492	1,047
Total Current	135,840	161,567
Total Loans	136,332	162,614
Total 90 Days Past Due and Still Accruing	0	0
Construction and land \| Real estate \| 30 to 59 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	492	1,047
Construction and land \| Real estate \| 60 to 89 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Construction and land \| Real estate \| 90 Days or Greater
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Farmland \| Real estate
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Total Current	8,448	8,262
Total Loans	8,448	8,262
Total 90 Days Past Due and Still Accruing	0	0
Farmland \| Real estate \| 30 to 59 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Farmland \| Real estate \| 60 to 89 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Farmland \| Real estate \| 90 Days or Greater
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Real estate \| Real estate
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Loans	196,088	154,820
Commercial Real Estate \| Real estate
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	727	754
Total Current	430,168	369,942
Total Loans	430,895	370,696
Total 90 Days Past Due and Still Accruing	0	754
Commercial Real Estate \| Real estate \| 30 to 59 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Commercial Real Estate \| Real estate \| 60 to 89 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Commercial Real Estate \| Real estate \| 90 Days or Greater
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	727	754
1 - 4 family residential \| Real estate \| Real estate
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	815	724
Total Current	157,008	139,413
Total Loans	157,823	140,137
Total 90 Days Past Due and Still Accruing	0	0
1 - 4 family residential \| Real estate \| Real estate \| 30 to 59 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	815	510
1 - 4 family residential \| Real estate \| Real estate \| 60 to 89 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	214
1 - 4 family residential \| Real estate \| Real estate \| 90 Days or Greater
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Multi-family residential \| Real estate \| Real estate
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Total Current	38,265	14,683
Total Loans	38,265	14,683
Total 90 Days Past Due and Still Accruing	0	0
Multi-family residential \| Real estate \| Real estate \| 30 to 59 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Multi-family residential \| Real estate \| Real estate \| 60 to 89 Days
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	0	0
Multi-family residential \| Real estate \| Real estate \| 90 Days or Greater
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans
Total Past Due	$ 0	$ 0