Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 31, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'KENTUCKY BANCSHARES INC /KY/ | ' |
Entity Central Index Key | '0001000232 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 2,721,142 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $14,951 | $22,650 |
Federal funds sold | 88 | 510 |
Cash and cash equivalents | 15,039 | 23,160 |
Securities available for sale | 224,168 | 230,396 |
Trading Assets | 5,242 | ' |
Mortgage loans held for sale | 495 | 223 |
Loans | 496,134 | 468,655 |
Allowance for loan losses | -5,614 | -5,441 |
Net loans | 490,520 | 463,214 |
Federal Home Loan Bank stock | 5,981 | 6,731 |
Real estate owned, net | 2,306 | 3,379 |
Bank premises and equipment, net | 16,780 | 16,709 |
Interest receivable | 3,254 | 3,618 |
Mortgage servicing rights | 1,245 | 1,344 |
Goodwill | 13,117 | 13,117 |
Other intangible assets | 243 | 317 |
Other assets | 6,906 | 8,371 |
Total assets | 785,296 | 770,579 |
Deposits | ' | ' |
Non-interest bearing | 157,988 | 152,052 |
Time deposits, $100,000 and over | 92,069 | 96,264 |
Other interest bearing | 347,352 | 369,084 |
Total deposits | 597,409 | 617,400 |
Repurchase agreements and other borrowings | 11,297 | 12,867 |
Federal funds purchased | 4,649 | ' |
Short-term Federal Home Loan Bank advances | 20,000 | ' |
Long-term Federal Home Loan Bank advances | 61,414 | 57,847 |
Subordinated debentures | 7,217 | 7,217 |
Interest payable | 679 | 736 |
Other liabilities | 7,699 | 6,839 |
Total liabilities | 710,364 | 702,906 |
Stockholders' equity | ' | ' |
Preferred stock, 300,000 shares authorized and unissued | ' | ' |
Common stock, no par value; 10,000,000 shares authorized; 2,721,142 and 2,717,434 shares issued and outstanding on June 30, 2014 and December 31, 2013 | 12,608 | 12,570 |
Retained earnings | 62,469 | 60,229 |
Accumulated other comprehensive loss | -145 | -5,126 |
Total stockholders' equity | 74,932 | 67,673 |
Total liabilities & stockholders' equity | $785,296 | $770,579 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred stock, shares authorized | 300,000 | 300,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,721,142 | 2,717,434 |
Common stock, shares outstanding | 2,721,142 | 2,717,434 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
INTEREST INCOME: | ' | ' | ' | ' |
Loans, including fees | $5,896 | $5,553 | $11,657 | $11,279 |
Securities | ' | ' | ' | ' |
Taxable | 680 | 527 | 1,355 | 1,006 |
Tax exempt | 718 | 681 | 1,451 | 1,349 |
Trading assets | 43 | ' | 80 | ' |
Other | 69 | 76 | 145 | 159 |
Total interest income | 7,406 | 6,837 | 14,688 | 13,793 |
INTEREST EXPENSE: | ' | ' | ' | ' |
Deposits | 535 | 572 | 1,074 | 1,162 |
Repurchase agreements and other borrowings | 25 | 24 | 48 | 31 |
Federal Home Loan Bank advances | 309 | 164 | 623 | 330 |
Subordinated debentures | 58 | 56 | 115 | 115 |
Total interest expense | 927 | 816 | 1,860 | 1,638 |
Net interest income | 6,479 | 6,021 | 12,828 | 12,155 |
Provision for loan losses | 100 | 150 | 200 | 600 |
Net interest income after provision | 6,379 | 5,871 | 12,628 | 11,555 |
NON-INTEREST INCOME: | ' | ' | ' | ' |
Service charges | 1,062 | 1,088 | 2,073 | 2,108 |
Loan service fee income, net | 5 | 16 | 34 | -36 |
Trust department income | 239 | 183 | 461 | 360 |
Gain on sale of available for sale securities, net | 245 | 485 | 433 | 774 |
Gain on trading assets | 91 | ' | 162 | ' |
Gain on sale of mortgage loans | 241 | 514 | 398 | 1,140 |
Brokerage income | 210 | 109 | 290 | 177 |
Debit card interchange income | 530 | 505 | 1,009 | 953 |
Other | 45 | -73 | 77 | -46 |
Total other income | 2,668 | 2,827 | 4,937 | 5,430 |
NON-INTEREST EXPENSE: | ' | ' | ' | ' |
Salaries and employee benefits | 3,661 | 3,488 | 7,263 | 6,778 |
Occupancy expenses | 830 | 829 | 1,678 | 1,547 |
Repossession expenses, net | 25 | -32 | 23 | 35 |
FDIC Insurance | 140 | 130 | 268 | 262 |
Legal and professional fees | 322 | 237 | 458 | 390 |
Data processing | 331 | 340 | 668 | 688 |
Debit card expenses | 262 | 245 | 496 | 468 |
Amortization | 37 | 57 | 74 | 114 |
Advertising and marketing | 232 | 192 | 441 | 376 |
Taxes other than payroll, property and income | 197 | 222 | 422 | 447 |
Telephone | 87 | 43 | 176 | 110 |
Postage | 85 | 72 | 157 | 147 |
Loan fees | 83 | 123 | 160 | 246 |
Other | 483 | 499 | 945 | 1,013 |
Total other expenses | 6,775 | 6,445 | 13,229 | 12,621 |
Income before taxes | 2,272 | 2,253 | 4,336 | 4,364 |
Income taxes | 368 | 468 | 661 | 870 |
Net income | 1,904 | 1,785 | 3,675 | 3,494 |
Other Comprehensive Income (Loss), net of tax: | ' | ' | ' | ' |
Change in Unrealized Gains (losses) on Securities | 1,730 | -4,724 | 4,981 | -5,976 |
Comprehensive Income (Loss) | $3,634 | ($2,939) | $8,656 | ($2,482) |
Earnings per share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.70 | $0.66 | $1.36 | $1.29 |
Diluted (in dollars per share) | $0.70 | $0.66 | $1.36 | $1.29 |
Dividends per share (in dollars per share) | $0.25 | $0.24 | $0.50 | $0.48 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | ||
In Thousands, except Share data, unless otherwise specified | ||||||
Balances at Dec. 31, 2013 | $67,673 | $12,570 | [1] | $60,229 | ($5,126) | |
Balances (in shares) at Dec. 31, 2013 | [1] | ' | 2,717,434 | ' | ' | |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ||
Common stock issued (in shares) | [1] | ' | 7,503 | ' | ' | |
Stock based compensation expense | 55 | 55 | [1] | ' | ' | |
Common stock purchased and retired | -91 | -17 | [1] | -74 | ' | |
Common stock purchased and retired (in shares) | [1] | ' | -3,795 | ' | ' | |
Net change in unrealized gain (loss) on securities available for sale, net of tax and reclassifications | 4,981 | ' | ' | 4,981 | ||
Net income | 3,675 | ' | 3,675 | ' | ||
Dividends declared - $0.50 per share | -1,361 | ' | -1,361 | ' | ||
Balances at Jun. 30, 2014 | $74,932 | $12,608 | [1] | $62,469 | ($145) | |
Balances (in shares) at Jun. 30, 2014 | [1] | ' | 2,721,142 | ' | ' | |
[1] | Common Stock has no par value; amount includes Additional Paid-in Capital |
CONSOLIDATED_STATEMENT_OF_CHAN1
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | ' | ' | ' | ' |
Dividends per share (in dollars per share) | $0.25 | $0.24 | $0.50 | $0.48 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash Flows From Operating Activities | ' | ' |
Net Income | $3,675 | $3,494 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 904 | 945 |
Securities amortization (accretion), net | 303 | 565 |
Stock based compensation expense | 55 | 48 |
Provision for loan losses | 200 | 600 |
Securities available for sale gains, net | -433 | -774 |
Net change in trading assets | -5,242 | ' |
Originations of loans held for sale | -13,757 | -34,329 |
Proceeds from sale of loans | 13,883 | 35,536 |
Losses (gains) on sale of fixed assets | ' | 105 |
Losses (gains) on other real estate | -70 | -30 |
Gain on sale of mortgage loans | -398 | -1,140 |
Changes in: | ' | ' |
Interest receivable | 364 | 373 |
Write-downs of other real estate, net | 10 | -10 |
Other assets | 1,369 | -185 |
Interest payable | -57 | 78 |
Other liabilities | -1,707 | 708 |
Net cash from operating activities | -901 | 5,984 |
Cash Flows From Investing Activities | ' | ' |
Purchases of securities available for sale | -34,977 | -55,086 |
Proceeds from principal payments, sales, maturities and calls of securities | 48,883 | 42,583 |
Net change in loans | -27,925 | -23,668 |
Proceeds from sale of Federal Home Loan Bank stock | 750 | ' |
Purchases of bank premises and equipment | -705 | -897 |
Proceeds from the sale of other real estate | 1,551 | 754 |
Net cash from investing activities | -12,423 | -36,314 |
Cash Flows From Financing Activities: | ' | ' |
Net change in deposits | -19,991 | -14,681 |
Net change in repurchase agreements and other borrowings | 3,079 | 17,238 |
Short-term advances from Federal Home Loan Bank | 105,000 | 41,000 |
Payment on short-term Federal Home Loan Bank advances | -85,000 | -31,000 |
Long-term advances from Federal Home Loan Bank | 6,538 | 8,200 |
Payments on long-term Federal Home Loan Bank advances | -2,971 | -5,991 |
Payments on note payable | ' | -500 |
Purchase of common stock | -91 | -87 |
Dividends paid | -1,361 | -1,307 |
Net cash from financing activities | 5,203 | 12,872 |
Net change in cash and cash equivalents | -8,121 | -17,458 |
Cash and cash equivalents at beginning of period | 23,160 | 31,764 |
Cash and cash equivalents at end of period | 15,039 | 14,306 |
Cash paid during the year for: | ' | ' |
Interest expense | 1,917 | 1,560 |
Income taxes | 700 | 975 |
Supplemental disclosures of non-cash investing activities | ' | ' |
Real estate acquired through foreclosure | $419 | $248 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
The financial information presented as of any date other than December 31 has been prepared from the Company’s books and records without audit. The accompanying consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain financial information that is normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America, but is not required for interim reporting purposes, has been condensed or omitted. There have been no significant changes to the Company’s accounting and reporting policies as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of such financial statements, have been included. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. | |
For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. | |
Basis of Presentation: The consolidated financial statements include the accounts of Kentucky Bancshares, Inc. (the “Company”, “we”, “our” or “us”), its wholly-owned subsidiary, Kentucky Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, KB Special Assets Unit, LLC. Intercompany transactions and balances have been eliminated in consolidation. | |
Nature of Operations: The Bank operates under a state bank charter and provides full banking services, including trust services, to customers located in Bourbon, Clark, Elliott, Fayette, Harrison, Jessamine, Madison, Rowan, Scott, Woodford and adjoining counties in Kentucky. Management continues to consider opportunities for branch expansion and will also consider acquisition opportunities that help advance its strategic objectives. As a state bank, the Bank is subject to regulation by the Kentucky Department of Financial Institutions and the Federal Deposit Insurance Corporation (“FDIC”). The Company, a bank holding company, is regulated by the Federal Reserve. On July 9, 2014, a new subsidiary of the Company was incorporated under the name KBI Insurance Company, Inc. KBI Insurance Company, Inc. is a subsidiary of Kentucky Bancshares, Inc. and is located in Las Vegas, Nevada. It is a captive insurance subsidiary which insures various liability and property damage policies for Kentucky Bancshares, Inc. and its related subsidiaries. KBI Insurance Company, Inc. is regulated by the State of Nevada Division of Insurance. | |
Estimates in the Financial Statements: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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 those estimates and such differences could be material to the financial statements. The allowance for loan losses, loss contingencies, mortgage servicing rights, real estate owned, goodwill and fair value of financial instruments are particularly subject to change. | |
Trading Assets: The Company engages in trading activities for its own account. Securities that are held principally for resale in the near term are recorded at fair value with changes in fair value included in earnings. Interest and dividends are included in net interest income. | |
Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. | |
Pension Matter: The Company terminated the Kentucky Bancshares, Inc. Retirement Plan and Trust (the “Plan”) in a standard termination, with a termination date of December 31, 2008. Prior to such termination, the Pension Protection Act of 2006 (“PPA”) had amended Internal Revenue Code (“IRC”) Section 417(e)(3) in part by changing the definition of “applicable interest rate” in a manner that in most cases (when combined with other changes to IRC Section 417(e)(3)) would result in a decrease in the value of a participant’s or beneficiary’s plan benefits under pension plans such as the Company’s Plan with the new definition applicable (for most plans, including the Plan) to lump sums with annuity starting dates in or after the 2008 plan year. The Plan had determined in mid-2008 to comply with IRC Section 417(e)(3), as amended by PPA, by using the assumptions governing minimum lump sums, rather than by using the pre-PPA minimum lump sum assumptions, and operated the Plan in compliance with that decision. As permitted by the IRC, the Plan was amended on February 24, 2009 (after the termination of the Plan on December 31, 2008) to formalize that decision in accordance with Section 1107 of PPA. | |
The Internal Revenue Service issued a favorable determination as to the Plan termination in July 2010. Subsequent to Plan termination and distributions to Plan participants, the Plan was selected for audit by the Pension Benefit Guaranty Corporation (“PBGC”). The PBGC asserted that the February, 2009 amendment to the Plan violated PBGC Regulation Section 4041.8(a) because the amendment served to lower benefits to Plan beneficiaries. The PBGC filed a Complaint in May 2013 in United States District Court (Eastern District of Kentucky) to require the Company to make additional distributions to Plan beneficiaries. On March 17, 2014, the United States District Court (Eastern District of Kentucky) issued an Opinion and Order entering judgment in favor of the PBGC and ruling that the Company must comply with the PBGC’s determination respecting the Plan. The Company is appraising its options with respect to this judgment, and has appealed the decision. The appeal is pending. However, in light of the court’s opinion, the Company accrued approximately $1.6 million as of December 31, 2013 for this matter. The accrued balance for this matter remains $1.6 million at June 30, 2014. Moreover, in the event the subject court decision is not overturned, the Company believes it has claims for further contribution towards payment of this liability from professionals who assisted the Company in the termination of the Plan. | |
Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior period net income or stockholders’ equity. | |
Adoption of New Accounting Standards | |
In January 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-04 - Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage loans upon Foreclosure. This standard provides clarification when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be removed from the balance sheet and other real estate owned recognized. These amendments clarify that when an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. For public business entities (PBEs) this ASU is effective for annual periods, and interim periods within those annual periods, beginning after Dec 15, 2014. For entities that are not PBEs, this ASU is effective for annual periods beginning after Dec 15, 2014, and for interim periods within annual periods beginning after Dec 15, 2015. Early adoption is permitted. The effect of adopting this standard is not expected to have a material effect on the Company’s results of operations or financial condition. | |
In May 2014, FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU creates a new topic, Topic 606, to provide guidance on revenue recognition for entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets. The core principle of the guidance 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. Additional disclosures are required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2016. Early adoption is not permitted. Management is currently evaluating the impact of the adoption of this guidance on the Company’s financial statements. |
SECURITIES
SECURITIES | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
SECURITIES | ' | |||||||||||||||||||
SECURITIES | ' | |||||||||||||||||||
2. SECURITIES | ||||||||||||||||||||
SECURITIES AVAILABLE FOR SALE | ||||||||||||||||||||
Period-end securities are as follows: | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||
Available for Sale | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
U.S. government agencies | $ | 69,062 | $ | 19 | $ | (1,809 | ) | $ | 67,272 | |||||||||||
States and political subdivisions | 85,375 | 2,894 | (731 | ) | 87,538 | |||||||||||||||
Mortgage-backed - residential | 69,681 | 315 | (932 | ) | 69,064 | |||||||||||||||
Equity securities | 270 | 24 | — | 294 | ||||||||||||||||
Total | $ | 224,388 | $ | 3,252 | $ | (3,472 | ) | $ | 224,168 | |||||||||||
December 31, 2013 | ||||||||||||||||||||
U.S. government agencies | $ | 73,930 | $ | 51 | $ | (4,695 | ) | $ | 69,286 | |||||||||||
States and political subdivisions | 91,043 | 1,614 | (2,474 | ) | 90,183 | |||||||||||||||
Mortgage-backed - residential | 72,920 | 44 | (2,326 | ) | 70,638 | |||||||||||||||
Equity securities | 270 | 19 | — | 289 | ||||||||||||||||
Total | $ | 238,163 | $ | 1,728 | $ | (9,495 | ) | $ | 230,396 | |||||||||||
The amortized cost and fair value of securities at June 30, 2014 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity are shown separately. Further discussion concerning Fair Value Measurements can be found in Note 8. | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||
Cost | Value | |||||||||||||||||||
Due in one year or less | $ | 467 | $ | 469 | ||||||||||||||||
Due after one year through five years | 8,888 | 8,897 | ||||||||||||||||||
Due after five years through ten years | 80,302 | 79,607 | ||||||||||||||||||
Due after ten years | 64,780 | 65,837 | ||||||||||||||||||
154,437 | 154,810 | |||||||||||||||||||
Mortgage-backed - residential | 69,681 | 69,064 | ||||||||||||||||||
Equity | 270 | 294 | ||||||||||||||||||
Total | $ | 224,388 | $ | 224,168 | ||||||||||||||||
Proceeds from sales of securities during the first six months of 2014 and 2013 were $40.0 million and $27.2 million. Gross gains of $785 thousand and $774 thousand and gross losses of $352 thousand and $0 were realized on those sales, respectively. The tax provision related to these realized net gains was $147 thousand and $263 thousand, respectively. | ||||||||||||||||||||
Proceeds from sales of securities during the three months ending June 30, 2014 and June 30, 2013 were $23.5 million and $16.7 million. Gross gains of $477 thousand and $485 thousand and gross losses of $232 thousand and $0 were realized on those sales, respectively. The tax provision related to these realized gains and losses was $83 thousand and $165 thousand, respectively. | ||||||||||||||||||||
Securities with unrealized losses June 30, 2014 and at December 31, 2013 not recognized in income are as follows: | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Description of Securities | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
U.S. Government agencies | $ | 12,771 | $ | (142 | ) | $ | 53,774 | $ | (1,667 | ) | $ | 66,545 | $ | (1,809 | ) | |||||
States and municipals | 4,426 | (66 | ) | 13,892 | (665 | ) | 18,318 | (731 | ) | |||||||||||
Mortgage-backed - residential | 10,695 | (167 | ) | 25,753 | (765 | ) | 36,448 | (932 | ) | |||||||||||
Total temporarily impaired | $ | 27,892 | $ | (375 | ) | $ | 93,419 | $ | (3,097 | ) | $ | 121,311 | $ | (3,472 | ) | |||||
December 31, 2013 | ||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Description of Securities | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
U.S. Government agencies | $ | 57,203 | $ | (3,812 | ) | $ | 8,117 | $ | (883 | ) | $ | 65,320 | $ | (4,695 | ) | |||||
States and municipals | 32,289 | (2,106 | ) | 2,879 | (368 | ) | 35,168 | (2,474 | ) | |||||||||||
Mortgage-backed - residential | 62,126 | (2,326 | ) | — | — | 62,126 | (2,326 | ) | ||||||||||||
Total temporarily impaired | $ | 151,618 | $ | (8,244 | ) | $ | 10,996 | $ | (1,251 | ) | $ | 162,614 | $ | (9,495 | ) | |||||
The Company evaluates securities for other than temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. In analyzing an issuer’s financial condition, we may consider many factors including, (1) whether the securities are issued by the federal government or its agencies, (2) whether downgrades by bond rating agencies have occurred, (3) the results of reviews of the issuer’s financial condition and near-term prospects, (4) the length of time and the extent to which the fair value has been less than cost, and (5) whether we intend to sell the investment security or more likely than not will be required to sell the investment security before its anticipated recovery. | ||||||||||||||||||||
Unrealized losses on securities included in the tables above have not been recognized into income because (1) all rated securities are investment grade and are of high credit quality, (2) management does not intend to sell and it is more likely than not that management would not be required to sell the securities prior to their anticipated recovery, (3) management believes the decline in fair value is largely due to changes in interest rates and (4) management believes the declines in fair value are temporary. The Company believes the fair value is expected to recover as the securities approach maturity. | ||||||||||||||||||||
TRADING ASSETS | ||||||||||||||||||||
The trading assets of $5.2 million are primarily comprised of municipal securities which are held for a very short period of time. |
LOANS
LOANS | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
LOANS | ' | |||||||||||||||||||
LOANS | ' | |||||||||||||||||||
3. LOANS | ||||||||||||||||||||
Loans at period-end are as follows: | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
6/30/14 | 12/31/13 | |||||||||||||||||||
Commercial | $ | 33,727 | $ | 34,654 | ||||||||||||||||
Real estate construction | 13,393 | 11,177 | ||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 208,620 | 194,388 | ||||||||||||||||||
Multi-family residential | 18,805 | 16,420 | ||||||||||||||||||
Non-farm & non-residential | 131,795 | 126,791 | ||||||||||||||||||
Agricultural | 72,605 | 68,002 | ||||||||||||||||||
Consumer | 16,947 | 17,065 | ||||||||||||||||||
Other | 242 | 158 | ||||||||||||||||||
Total | $ | 496,134 | $ | 468,655 | ||||||||||||||||
Activity in the allowance for loan losses for the six and three month periods indicated was as follows: | ||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision | Balance | ||||||||||||||||
Commercial | $ | 230 | $ | 200 | $ | — | $ | 201 | $ | 231 | ||||||||||
Real estate Construction | 358 | — | 8 | (7 | ) | 359 | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 2,169 | 88 | 16 | 227 | 2,324 | |||||||||||||||
Multi-family residential | 427 | — | — | (100 | ) | 327 | ||||||||||||||
Non-farm & non-residential | 564 | — | 367 | (197 | ) | 734 | ||||||||||||||
Agricultural | 578 | — | 25 | (57 | ) | 546 | ||||||||||||||
Consumer | 548 | 153 | 41 | 107 | 543 | |||||||||||||||
Other | 51 | 202 | 159 | 25 | 33 | |||||||||||||||
Unallocated | 516 | — | — | 1 | 517 | |||||||||||||||
$ | 5,441 | $ | 643 | $ | 616 | $ | 200 | $ | 5,614 | |||||||||||
Three Months Ended June, 30 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision | Balance | ||||||||||||||||
Commercial | $ | 208 | $ | — | $ | — | $ | 23 | $ | 231 | ||||||||||
Real estate Construction | 329 | — | 4 | 26 | 359 | |||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 2,111 | 25 | 4 | 234 | 2,324 | |||||||||||||||
Multi-family residential | 401 | — | — | (74 | ) | 327 | ||||||||||||||
Non-farm & non-residential | 930 | — | — | (196 | ) | 734 | ||||||||||||||
Agricultural | 553 | — | 1 | (8 | ) | 546 | ||||||||||||||
Consumer | 550 | 76 | 23 | 46 | 543 | |||||||||||||||
Other | 11 | 105 | 72 | 55 | 33 | |||||||||||||||
Unallocated | 523 | — | — | (6 | ) | 517 | ||||||||||||||
$ | 5,616 | $ | 206 | $ | 104 | $ | 100 | $ | 5,614 | |||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision | Balance | ||||||||||||||||
Commercial | $ | 150 | $ | 11 | $ | 28 | $ | (16 | ) | $ | 151 | |||||||||
Real estate Construction | 918 | 578 | 21 | 12 | 373 | |||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,989 | 141 | 56 | 80 | 1,984 | |||||||||||||||
Multi-family residential | 414 | 161 | 39 | 189 | 481 | |||||||||||||||
Non-farm & non-residential | 628 | — | 18 | 31 | 677 | |||||||||||||||
Agricultural | 845 | 86 | 3 | (101 | ) | 661 | ||||||||||||||
Consumer | 517 | 252 | 18 | 265 | 548 | |||||||||||||||
Other | 54 | 309 | 206 | 141 | 92 | |||||||||||||||
Unallocated | 532 | — | — | (1 | ) | 531 | ||||||||||||||
$ | 6,047 | $ | 1,538 | $ | 389 | $ | 600 | $ | 5,498 | |||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision | Balance | ||||||||||||||||
Commercial | $ | 135 | $ | 5 | $ | — | $ | 21 | $ | 151 | ||||||||||
Real estate Construction | 497 | — | 16 | (140 | ) | 373 | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,974 | 16 | 30 | (4 | ) | 1,984 | ||||||||||||||
Multi-family residential | 493 | 161 | 39 | 110 | 481 | |||||||||||||||
Non-farm & non-residential | 611 | — | 10 | 56 | 677 | |||||||||||||||
Agricultural | 747 | — | 1 | (87 | ) | 661 | ||||||||||||||
Consumer | 511 | 104 | 7 | 134 | 548 | |||||||||||||||
Other | 99 | 172 | 80 | 85 | 92 | |||||||||||||||
Unallocated | 556 | — | — | (25 | ) | 531 | ||||||||||||||
$ | 5,623 | $ | 458 | $ | 183 | $ | 150 | $ | 5,498 | |||||||||||
The following tables present the balance in the allowance for loan losses and the recorded investment (excluding accrued interest receivable amounting to $2.0 million as of June 30, 2014 and $2.3 million at December 31, 2013) in loans by portfolio segment and based on impairment method as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Individually | Collectively | |||||||||||||||||||
Evaluated for | Evaluated for | |||||||||||||||||||
Impairment | Impairment | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||
Commercial | $ | — | $ | 231 | $ | 231 | ||||||||||||||
Real estate construction | — | 359 | 359 | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 326 | 1,998 | 2,324 | |||||||||||||||||
Multi-family residential | 50 | 277 | 327 | |||||||||||||||||
Non-farm & non-residential | 182 | 552 | 734 | |||||||||||||||||
Agricultural | 260 | 286 | 546 | |||||||||||||||||
Consumer | — | 543 | 543 | |||||||||||||||||
Other | — | 33 | 33 | |||||||||||||||||
Unallocated | — | 517 | 517 | |||||||||||||||||
$ | 818 | $ | 4,796 | $ | 5,614 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | $ | — | $ | 33,727 | $ | 33,727 | ||||||||||||||
Real estate construction | — | 13,393 | 13,393 | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 3,196 | 205,424 | 208,620 | |||||||||||||||||
Multi-family residential | 345 | 18,460 | 18,805 | |||||||||||||||||
Non-farm & non-residential | 3,937 | 127,858 | 131,795 | |||||||||||||||||
Agricultural | 9,534 | 63,071 | 72,605 | |||||||||||||||||
Consumer | — | 16,947 | 16,947 | |||||||||||||||||
Other | — | 242 | 242 | |||||||||||||||||
$ | 17,012 | $ | 479,122 | $ | 496,134 | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Individually | Collectively | |||||||||||||||||||
Evaluated for | Evaluated for | |||||||||||||||||||
Impairment | Impairment | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||
Commercial | $ | — | $ | 230 | $ | 230 | ||||||||||||||
Real estate construction | — | 358 | 358 | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 228 | 1,941 | 2,169 | |||||||||||||||||
Multi-family residential | 76 | 351 | 427 | |||||||||||||||||
Non-farm & non-residential | 110 | 454 | 564 | |||||||||||||||||
Agricultural | 298 | 280 | 578 | |||||||||||||||||
Consumer | — | 548 | 548 | |||||||||||||||||
Other | — | 51 | 51 | |||||||||||||||||
Unallocated | — | 516 | 516 | |||||||||||||||||
$ | 712 | $ | 4,729 | $ | 5,441 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | $ | — | $ | 34,654 | $ | 34,654 | ||||||||||||||
Real estate construction | — | 11,177 | 11,177 | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 2,873 | 191,515 | 194,388 | |||||||||||||||||
Multi-family residential | 274 | 16,146 | 16,420 | |||||||||||||||||
Non-farm & non-residential | 2,716 | 124,075 | 126,791 | |||||||||||||||||
Agricultural | 7,673 | 60,329 | 68,002 | |||||||||||||||||
Consumer | — | 17,065 | 17,065 | |||||||||||||||||
Other | — | 158 | 158 | |||||||||||||||||
$ | 13,536 | $ | 455,119 | $ | 468,655 | |||||||||||||||
The following table presents loans individually evaluated for impairment by class of loans as of and for the six months ended June 30, 2014 (in thousands): | ||||||||||||||||||||
Unpaid | Allowance for | Average | Interest | Cash Basis | ||||||||||||||||
Principal | Recorded | Loan Losses | Recorded | Income | Interest | |||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | Recognized | |||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Real estate construction | — | — | — | — | — | — | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,302 | 1,302 | — | 1,002 | — | — | ||||||||||||||
Multi-family residential | — | — | — | — | — | — | ||||||||||||||
Non-farm & non-residential | — | — | — | 267 | — | — | ||||||||||||||
Agricultural | 4,780 | 4,780 | — | 2,684 | 80 | 80 | ||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | — | — | — | — | — | — | ||||||||||||||
Real estate construction | — | — | — | — | — | — | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,894 | 1,894 | 326 | 1,991 | 44 | 44 | ||||||||||||||
Multi-family residential | 345 | 345 | 50 | 323 | 5 | 5 | ||||||||||||||
Non-farm & non-residential | 3,937 | 3,937 | 182 | 3,043 | 73 | 73 | ||||||||||||||
Agricultural | 4,754 | 4,754 | 260 | 5,034 | 19 | 19 | ||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||
Other | — | — | — | — | — | |||||||||||||||
Total | $ | 17,012 | $ | 17,012 | $ | 818 | $ | 14,344 | $ | 221 | $ | 221 | ||||||||
The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. | ||||||||||||||||||||
The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2013 (in thousands): | ||||||||||||||||||||
Unpaid | Allowance for | Average | Interest | Cash Basis | ||||||||||||||||
Principal | Recorded | Loan Losses | Recorded | Income | Interest | |||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | Recognized | |||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Real estate construction | — | — | — | — | — | — | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 824 | 793 | — | 1,217 | 28 | 28 | ||||||||||||||
Multi-family residential | — | — | — | — | — | — | ||||||||||||||
Non-farm & non-residential | 1,650 | 803 | — | 1,471 | 81 | 81 | ||||||||||||||
Agricultural | 2,912 | 2,826 | — | 2,802 | 123 | 123 | ||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | — | — | — | — | — | — | ||||||||||||||
Real estate construction | — | — | — | 607 | — | — | ||||||||||||||
Real estate mortgage | ||||||||||||||||||||
1-4 family residential | 2,080 | 2,080 | 228 | 1,349 | 96 | 96 | ||||||||||||||
Multi-family residential | 274 | 274 | 76 | 443 | 3 | 3 | ||||||||||||||
Non-farm & non-residential | 1,913 | 1,913 | 110 | 1,938 | 79 | 79 | ||||||||||||||
Agricultural | 4,847 | 4,847 | 298 | 4,864 | 287 | 287 | ||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||
Other | — | — | — | — | — | |||||||||||||||
Total | $ | 14,501 | $ | 13,536 | $ | 712 | $ | 14,691 | $ | 697 | $ | 697 | ||||||||
The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. | ||||||||||||||||||||
The following table presents loans individually evaluated for impairment by class of loans as of and for the six months ended June 30, 2013 (in thousands): | ||||||||||||||||||||
Average | Interest | Cash Basis | ||||||||||||||||||
Recorded | Income | Interest | ||||||||||||||||||
Investment | Recognized | Recognized | ||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | ||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,253 | 21 | 21 | |||||||||||||||||
Multi-family residential | — | — | — | |||||||||||||||||
Non-farm & non-residential | 1,625 | 40 | 40 | |||||||||||||||||
Agricultural | 2,873 | 9 | 9 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Other | — | — | — | |||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | — | — | — | |||||||||||||||||
Real estate construction | — | — | ||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 874 | 21 | 21 | |||||||||||||||||
Multi-family residential | 511 | 3 | 3 | |||||||||||||||||
Non-farm & non-residential | 2,641 | 40 | 40 | |||||||||||||||||
Agricultural | 4,711 | 57 | 57 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Other | — | — | ||||||||||||||||||
Total | $ | 14,488 | $ | 191 | $ | 191 | ||||||||||||||
The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. | ||||||||||||||||||||
The following tables present loans individually evaluated for impairment by class of loans for the three months ending June 30, 2014 and June 30, 2013 (in thousands): | ||||||||||||||||||||
Three Months Ending June 30, 2014 | ||||||||||||||||||||
Average | Interest | Cash Basis | ||||||||||||||||||
Recorded | Income | Interest | ||||||||||||||||||
Investment | Recognized | Recognized | ||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | ||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,562 | — | — | |||||||||||||||||
Multi-family residential | — | — | — | |||||||||||||||||
Non-farm & non-residential | — | — | — | |||||||||||||||||
Agricultural | 2,836 | 77 | 77 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Other | — | — | — | |||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | — | — | — | |||||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,377 | 38 | 38 | |||||||||||||||||
Multi-family residential | 310 | 1 | 1 | |||||||||||||||||
Non-farm & non-residential | 3,553 | 48 | 48 | |||||||||||||||||
Agricultural | 4,755 | 19 | 19 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Other | — | — | — | |||||||||||||||||
Total | $ | 14,393 | $ | 183 | $ | 183 | ||||||||||||||
The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. | ||||||||||||||||||||
Three Months Ending June 30, 2013 | ||||||||||||||||||||
Average | Interest | Cash Basis | ||||||||||||||||||
Recorded | Income | Interest | ||||||||||||||||||
Investment | Recognized | Recognized | ||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | ||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,035 | 2 | 2 | |||||||||||||||||
Multi-family residential | — | — | — | |||||||||||||||||
Non-farm & non-residential | 1,065 | 20 | 20 | |||||||||||||||||
Agricultural | 2,854 | 3 | 3 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Other | — | — | — | |||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | — | — | — | |||||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,016 | 7 | 7 | |||||||||||||||||
Multi-family residential | 669 | 1 | 1 | |||||||||||||||||
Non-farm & non-residential | 2,421 | 20 | 20 | |||||||||||||||||
Agricultural | 4,744 | 7 | 7 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Other | — | — | — | |||||||||||||||||
Total | $ | 13,804 | $ | 60 | $ | 60 | ||||||||||||||
The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality. | ||||||||||||||||||||
The following tables present the recorded investment in nonaccrual, loans past due over 90 days still on accrual and accruing troubled debt restructurings by class of loans as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Loans Past Due | ||||||||||||||||||||
Over 90 Days | Accruing | |||||||||||||||||||
Still | Troubled Debt | |||||||||||||||||||
Nonaccrual | Accruing | Restructurings | ||||||||||||||||||
Commercial | $ | 299 | $ | — | $ | — | ||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 2,350 | 266 | 487 | |||||||||||||||||
Multi-family residential | 85 | — | — | |||||||||||||||||
Non-farm & non-residential | 988 | — | 1,853 | |||||||||||||||||
Agricultural | 216 | — | 4,530 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Total | $ | 3,938 | $ | 266 | $ | 6,870 | ||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Loans Past Due | ||||||||||||||||||||
Over 90 Days | Accruing | |||||||||||||||||||
Still | Troubled Debt | |||||||||||||||||||
Nonaccrual | Accruing | Restructurings | ||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | ||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,171 | 314 | 493 | |||||||||||||||||
Multi-family residential | 275 | — | — | |||||||||||||||||
Non-farm & non-residential | 803 | — | 1,878 | |||||||||||||||||
Agricultural | 717 | 232 | 4,530 | |||||||||||||||||
Consumer | 8 | 8 | — | |||||||||||||||||
Total | $ | 2,974 | $ | 554 | $ | 6,901 | ||||||||||||||
Nonaccrual loans secured by real estate make up 92.4% of the total nonaccruals at June 30, 2014. | ||||||||||||||||||||
Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. | ||||||||||||||||||||
A loan is considered impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. All amounts due according to the contractual terms means that both the contractual interest payments and the contractual principal payments of a loan will be collected as scheduled in the loan agreement. Nonaccrual loans are loans for which payments in full of principal or interest is not expected or which principal or interest has been in default for a period of 90 days or more unless the asset is both well secured and in the process of collection. Other impaired loans may be loans showing signs of weakness or interruptions in cash flow, but ultimately are current or less than 90 days past due with respect to principal and interest and for which we anticipate full payment of principal and interest but not in accordance with contractual terms. | ||||||||||||||||||||
Additional factors considered by management in determining impairment and non-accrual status include payment status, collateral value, availability of current financial information, and the probability of collecting all contractual principal and interest payments. | ||||||||||||||||||||
During the first six months of 2014, $419 thousand in impaired loans were transferred to other real estate owned. Additionally, $643 thousand in loan balances were charged off during the first six months of 2014 and $616 thousand in prior loan charge offs were recovered. | ||||||||||||||||||||
The following tables present the aging of the recorded investment in past due and non-accrual loans as of June 30, 2014 and December 31, 2013 by class of loans: | ||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
30–59 | 60–89 | Loans Past Due | Total | |||||||||||||||||
Days | Days | Over 90 Days | Past Due & | Loans Not | ||||||||||||||||
Past Due | Past Due | Still Accruing | Non-accrual | Non-accrual | Past Due | |||||||||||||||
Commercial | $ | 79 | $ | — | $ | — | $ | 299 | $ | 378 | $ | 33,349 | ||||||||
Real estate construction | — | — | — | — | — | 13,393 | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,788 | 433 | 266 | 2,350 | 4,837 | 203,783 | ||||||||||||||
Multi-family residential | — | 260 | — | 85 | 345 | 18,460 | ||||||||||||||
Non-farm & non-residential | 777 | — | — | 988 | 1,765 | 130,030 | ||||||||||||||
Agricultural | 312 | — | — | 216 | 528 | 72,077 | ||||||||||||||
Consumer | 151 | 44 | — | — | 195 | 16,752 | ||||||||||||||
Other | — | — | — | — | — | 242 | ||||||||||||||
Total | $ | 3,107 | $ | 737 | $ | 266 | $ | 3,938 | $ | 8,048 | $ | 488,086 | ||||||||
As of December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
30–59 | 60–89 | Greater than | Total | |||||||||||||||||
Days | Days | 90 Days | Past Due & | Loans Not | ||||||||||||||||
Past Due | Past Due | Past Due | Non-accrual | Non-accrual | Past Due | |||||||||||||||
Commercial | $ | 49 | $ | — | $ | — | $ | — | $ | 49 | $ | 34,605 | ||||||||
Real estate construction | 175 | — | — | — | 175 | 11,002 | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,981 | 1,285 | 314 | 1,171 | 4,751 | 189,637 | ||||||||||||||
Multi-family residential | — | — | — | 275 | 275 | 16,145 | ||||||||||||||
Non-farm & non-residential | 503 | — | — | 803 | 1,306 | 125,485 | ||||||||||||||
Agricultural | 155 | — | 232 | 717 | 1,104 | 66,898 | ||||||||||||||
Consumer | 102 | 27 | 8 | 8 | 145 | 16,920 | ||||||||||||||
Other | — | — | — | — | — | 158 | ||||||||||||||
Total | $ | 2,965 | $ | 1,312 | $ | 554 | $ | 2,974 | $ | 7,805 | $ | 460,850 | ||||||||
Troubled Debt Restructurings: | ||||||||||||||||||||
The Company has allocated $398 thousand in specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of June 30, 2014. The Company allocated $428 thousand for specific reserves to customers whose loan terms had been modified in troubled debt restructuring as of December 31, 2013. The Company has not committed to lend additional amounts as of June 30, 2014 and December 31, 2013 to customers with outstanding loans that are classified as troubled debt restructurings. There were no troubled debt restructurings for which there was a payment default within twelve months following the modification during the periods ending June 30, 2014 and 2013. | ||||||||||||||||||||
No loans were modified as troubled debt restructurings during the six months ending June 30, 2014 and 2013. | ||||||||||||||||||||
Credit Quality Indicators: | ||||||||||||||||||||
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: | ||||||||||||||||||||
Special Mention. Loans classified as special mention have one or more potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. | ||||||||||||||||||||
Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined and documented weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||
Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | ||||||||||||||||||||
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. | ||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: | ||||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Special | ||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | |||||||||||||||||
Commercial | $ | 31,932 | $ | 1,241 | $ | 554 | $ | — | ||||||||||||
Real estate construction | 11,934 | 1,459 | — | — | ||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 190,893 | 10,040 | 7,666 | 21 | ||||||||||||||||
Multi-family residential | 16,738 | 1,555 | 512 | — | ||||||||||||||||
Non-farm & non-residential | 125,306 | 5,050 | 1,439 | — | ||||||||||||||||
Agricultural | 58,709 | 12,353 | 1,543 | — | ||||||||||||||||
Total | $ | 435,512 | $ | 31,698 | $ | 11,714 | $ | 21 | ||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Special | ||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | |||||||||||||||||
Commercial | $ | 32,771 | $ | 1,587 | $ | 296 | $ | — | ||||||||||||
Real estate construction | 9,660 | 1,517 | — | — | ||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 176,553 | 10,346 | 7,489 | — | ||||||||||||||||
Multi-family residential | 14,392 | 1,579 | 449 | — | ||||||||||||||||
Non-farm & non-residential | 120,195 | 5,327 | 1,269 | — | ||||||||||||||||
Agricultural | 56,713 | 7,297 | 3,992 | — | ||||||||||||||||
Total | $ | 410,284 | $ | 27,653 | $ | 13,495 | $ | — | ||||||||||||
For consumer loans, the Company evaluates the credit quality based on the aging of the recorded investment in loans, which was previously presented. Non-performing consumer loans are loans which are greater than 90 days past due or on non-accrual status, and total $0 at June 30, 2014 and $16 thousand at December 31, 2013. |
REAL_ESTATE_OWNED
REAL ESTATE OWNED | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
REAL ESTATE OWNED | ' | |||||||
REAL ESTATE OWNED | ' | |||||||
4. REAL ESTATE OWNED | ||||||||
Activity in real estate owned, net was as follows: | ||||||||
Six Months Ended | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Beginning of year | $ | 3,379 | $ | 4,168 | ||||
Additions | 419 | 335 | ||||||
Sales | (1,540 | ) | (924 | ) | ||||
(Additions) subtractions to valuation allowance, net | (10 | ) | 10 | |||||
Recovery from sale in valuation allowance | 58 | 199 | ||||||
End of period | $ | 2,306 | $ | 3,788 | ||||
Activity in the valuation allowance was as follows: | ||||||||
Six Months Ended | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Beginning of year | $ | 1,524 | $ | 1,668 | ||||
Additions (subtractions) to valuation allowance, net | 10 | (10 | ) | |||||
Recovery from sale | (58 | ) | (199 | ) | ||||
End of period | $ | 1,476 | $ | 1,459 | ||||
Expenses related to foreclosed assets include: | ||||||||
Six Months Ended | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Net loss (gain) on sales | $ | (70 | ) | $ | (30 | ) | ||
Additions (subtractions) to valuation allowance, net | 10 | (10 | ) | |||||
Operating expenses (receipts), net of rental income | 13 | 45 | ||||||
Repossession expenses, net | 23 | 35 | ||||||
End of period | $ | (47 | ) | $ | 5 | |||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
EARNINGS PER SHARE | ' | |||||||
EARNINGS PER SHARE | ' | |||||||
5. EARNINGS PER SHARE | ||||||||
Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock based compensation agreements. | ||||||||
The factors used in the earnings per share computation follow: | ||||||||
Six Months Ended | ||||||||
June 30 | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Basic Earnings Per Share | ||||||||
Net Income | $ | 3,675 | $ | 3,494 | ||||
Weighted average common shares outstanding | 2,708 | 2,705 | ||||||
Basic earnings per share | $ | 1.36 | $ | 1.29 | ||||
Diluted Earnings Per Share | ||||||||
Net Income | $ | 3,675 | $ | 3,494 | ||||
Weighted average common shares outstanding | 2,708 | 2,705 | ||||||
Add dilutive effects of assumed vesting of stock grants | — | 4 | ||||||
Weighted average common and dilutive potential common shares outstanding | 2,708 | 2,709 | ||||||
Diluted earnings per share | $ | 1.36 | $ | 1.29 | ||||
Three Months Ended | ||||||||
June 30 | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Basic Earnings Per Share | ||||||||
Net Income | $ | 1,904 | $ | 1,785 | ||||
Weighted average common shares outstanding | 2,708 | 2,704 | ||||||
Basic earnings per share | $ | 0.7 | $ | 0.66 | ||||
Diluted Earnings Per Share | ||||||||
Net Income | $ | 1,904 | $ | 1,785 | ||||
Weighted average common shares outstanding | 2,708 | 2,704 | ||||||
Add dilutive effects of assumed vesting of stock grants | — | 4 | ||||||
Weighted average common and dilutive potential common shares outstanding | 2,708 | 2,708 | ||||||
Diluted earnings per share | $ | 0.7 | $ | 0.66 | ||||
Stock options for 12,725 shares of common stock for the six and three months ended June 30, 2014 and 19,500 shares of common stock for the six and three months ended June 30, 2013 were excluded from diluted earnings per share because their impact was antidilutive. |
STOCK_COMPENSATION
STOCK COMPENSATION | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
STOCK COMPENSATION | ' | |||||||||||
STOCK COMPENSATION | ' | |||||||||||
6. STOCK COMPENSATION | ||||||||||||
We have four stock based compensation plans as described below. | ||||||||||||
Two Stock Option Plans | ||||||||||||
Under our now expired 1999 Employee Stock Option Plan (the “1999 Plan”), we granted certain officers and key employees stock option awards which vest and become fully exercisable at the end of five years and provide for issuance of up to 100,000 options. Under the now expired 1993 Non-Employee Directors Stock Ownership Incentive Plan (together with the 1999 Plan, the “Stock Option Plans”), we also granted certain directors stock option awards which vest and become fully exercisable immediately and provide for issuance of up to 20,000 options. For each Stock Option Plan, the exercise price of each option, which has a ten year life, was equal to the market price of our stock on the date of grant. | ||||||||||||
The combined summary of activity for 2014 in the expired Stock Option Plans follows: | ||||||||||||
Weighted | ||||||||||||
Weighted | Average | |||||||||||
Average | Remaining | Aggregate | ||||||||||
Exercise | Contractual | Intrinsic | ||||||||||
Shares | Price | Term | Value | |||||||||
Outstanding, beginning of year | 19,100 | $ | 31.5 | |||||||||
Granted | — | — | ||||||||||
Forfeited or expired | (6,375 | ) | 33.56 | |||||||||
Exercised | — | — | ||||||||||
Outstanding, end of period | 12,725 | $ | 30.46 | 10.9 months | $ | — | ||||||
Vested and expected to vest | 12,725 | $ | 30.46 | 10.9 months | $ | — | ||||||
Exercisable, end of period | 12,725 | $ | 30.46 | 10.9 months | $ | — | ||||||
As of June 30, 2014, there was no unrecognized compensation cost related to nonvested stock options granted under either Stock Option Plan. Since both Stock Option Plans have expired, no additional options can be granted under either of these plans. | ||||||||||||
2005 Restricted Stock Grant Plan | ||||||||||||
On May 10, 2005, our stockholders approved a restricted stock grant plan. Total shares issuable under the plan are 50,000. We issued 7,475 shares during 2014 and 6,065 shares during 2013. There were no shares forfeited during the first six months of 2014 or 2013. As of June 30, 2014, the restricted stock grant plan allows for additional restricted stock share awards of up to 4,995 shares. | ||||||||||||
A summary of changes in the Company’s nonvested shares for the year follows: | ||||||||||||
Weighted-Average | Fair | |||||||||||
Grant-Date | Value | |||||||||||
Nonvested Shares | Shares | Fair Value | Per Share | |||||||||
Nonvested at January 1, 2014 | 15,565 | $ | 280,016 | $ | 17.99 | |||||||
Granted | 7,475 | 181,194 | 24.24 | |||||||||
Vested | (4,756 | ) | (84,518 | ) | 17.77 | |||||||
Forfeited | — | — | — | |||||||||
Nonvested at June 30, 2014 | 18,284 | $ | 376,692 | $ | 20.6 | |||||||
As of June 30, 2014, there was $327,197 of total unrecognized compensation cost related to nonvested shares granted under the restricted stock grant plan. The cost is expected to be recognized over a weighted-average period of 5 years. | ||||||||||||
2009 Stock Award Plan | ||||||||||||
On May 13, 2009, our stockholders approved a stock award plan that provides for the granting of both incentive and nonqualified stock options and other share based awards. Total shares issuable under the plan are 150,000. We issued no stock grants during the first six months of 2014 and 900 shares during the first six months of 2013. As of June 30, 2014, 149,100 shares are still available for issuance. | ||||||||||||
A summary of changes in the Company’s nonvested shares for the year follows: | ||||||||||||
Weighted-Average | Fair | |||||||||||
Grant-Date | Value | |||||||||||
Nonvested Shares | Shares | Fair Value | Per Share | |||||||||
Nonvested at January 1, 2014 | 900 | $ | 20,880 | $ | 23.2 | |||||||
Granted | — | — | — | |||||||||
Vested | (180 | ) | (4,176 | ) | 23.2 | |||||||
Forfeited | — | — | — | |||||||||
Nonvested at June 30, 2014 | 720 | $ | 16,704 | $ | 23.2 | |||||||
As of June 30, 2014, there was $15,312 of total unrecognized compensation cost related to nonvested shares granted under the restricted stock grant plan. The cost is expected to be recognized over a weighted-average period of 5 years. |
OTHER_BORROWINGS
OTHER BORROWINGS | 6 Months Ended |
Jun. 30, 2014 | |
OTHER BORROWINGS | ' |
OTHER BORROWINGS | ' |
7. OTHER BORROWINGS | |
The Company had a $5 million revolving promissory note which was scheduled to mature July 27, 2014. The Company renewed this note with similar terms as the original note, with the maturity date of July 26, 2015. The Company has no outstanding balances related to this promissory note at June 30, 2014. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
8. FAIR VALUE MEASUREMENTS | |||||||||||||||||
ASC Topic 820, “Fair Value Measurements and Disclosures”, defines fair value, establishes a framework for measuring fair value, and sets forth disclosures about fair value measurements. ASC Topic 825, “Financial Instruments”, allows entities to choose to measure certain financial assets and liabilities at fair value. The Company has not elected the fair value option for any financial assets or liabilities. | |||||||||||||||||
ASC Topic 820 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 at the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. This Topic describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||
Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | |||||||||||||||||
Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||
Level 3 — Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | |||||||||||||||||
The Company used the following methods and significant assumptions to estimate the fair value: | |||||||||||||||||
Investment Securities and Trading Assets: The fair values for available for sale investment securities and trading assets are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). | |||||||||||||||||
Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent third party real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. | |||||||||||||||||
Other Real Estate Owned: The fair value of certain commercial and residential real estate properties classified as other real estate owned (OREO) are generally based on third party appraisals of the property, resulting in a Level 3 classification. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. | |||||||||||||||||
Mortgage Servicing Rights: Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively based on a valuation model that calculates the present value of estimated future net servicing income, resulting in a Level 3 classification. | |||||||||||||||||
Assets and Liabilities Measured on a Recurring Basis | |||||||||||||||||
Available for sale investment securities and trading assets are the Company’s only balance sheet items that meet the disclosure requirements for instruments measured at fair value on a recurring basis. Disclosures are as follows in the tables below. | |||||||||||||||||
Fair Value Measurements at June 30, 2014 Using (In thousands): | |||||||||||||||||
Quoted Prices | |||||||||||||||||
In Active | |||||||||||||||||
Markets for | Significant Other | Significant | |||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||
Fair | Assets | Inputs | Inputs | ||||||||||||||
Description | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
U. S. government agencies | $ | 67,272 | $ | — | $ | 67,272 | $ | — | |||||||||
States and municipals | 87,538 | — | 87,538 | — | |||||||||||||
Mortgage-backed - residential | 69,064 | — | 69,064 | — | |||||||||||||
Equity securities | 294 | 294 | — | — | |||||||||||||
Trading Assets | 5,242 | 5,242 | — | — | |||||||||||||
Total | $ | 229,410 | $ | 5,536 | $ | 223,874 | $ | — | |||||||||
Available for Sale Investment Securities Fair Value Measurements at December 31, 2013 Using (In thousands): | |||||||||||||||||
Quoted Prices | |||||||||||||||||
In Active | |||||||||||||||||
Markets for | Significant Other | Significant | |||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||
Fair | Assets | Inputs | Inputs | ||||||||||||||
Description | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
U. S. government agencies | $ | 69,286 | $ | — | $ | 69,286 | $ | — | |||||||||
States and municipals | 90,183 | — | 90,183 | — | |||||||||||||
Mortgage-backed - residential | 70,638 | — | 70,638 | — | |||||||||||||
Equity securities | 289 | 289 | — | — | |||||||||||||
Total | $ | 230,396 | $ | 289 | $ | 230,107 | $ | — | |||||||||
The Company held no trading assets at December 31, 2013. Also, there were no transfers between level 1 and level 2 during 2014 or 2013. | |||||||||||||||||
Assets measured at fair value on a non-recurring basis are summarized below: | |||||||||||||||||
(In thousands) | |||||||||||||||||
Fair Value Measurements at June 30, 2014 Using: | |||||||||||||||||
Quoted Prices | |||||||||||||||||
In Active | Other | ||||||||||||||||
Markets for | Significant | Significant | |||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||
Carrying | Assets | Inputs | Inputs | ||||||||||||||
Description | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Impaired loans: | |||||||||||||||||
Real Estate Mortgage: | |||||||||||||||||
1-4 family residential | $ | 1,137 | — | — | $ | 1,137 | |||||||||||
Multi-family residential | 295 | — | — | 295 | |||||||||||||
Non-farm & non-residential | 1,276 | — | — | 1,276 | |||||||||||||
Agricultural | 220 | 220 | |||||||||||||||
Other real estate owned: | |||||||||||||||||
Residential | 1,180 | — | — | 1,180 | |||||||||||||
Loan servicing rights | 344 | — | — | 344 | |||||||||||||
(In thousands) | |||||||||||||||||
Fair Value Measurements at December 31, 2013 Using: | |||||||||||||||||
Quoted Prices | |||||||||||||||||
In Active | Other | ||||||||||||||||
Markets for | Significant | Significant | |||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||
Carrying | Assets | Inputs | Inputs | ||||||||||||||
Description | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Impaired loans: | |||||||||||||||||
Real Estate Mortgage: | |||||||||||||||||
1-4 family residential | $ | 1,420 | — | — | $ | 1,420 | |||||||||||
Multi-family residential | 199 | — | — | 199 | |||||||||||||
Non-farm & non-residential | 36 | — | — | 36 | |||||||||||||
Agricultural | 275 | — | — | 275 | |||||||||||||
Other real estate owned: | |||||||||||||||||
Residential | 1,361 | — | — | 1,361 | |||||||||||||
Loan servicing rights | 201 | — | — | 201 | |||||||||||||
Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a carrying amount of $2.9 million, which includes a valuation allowance of $370 thousand at June 30, 2014. During the first six months of 2014, five new loans became impaired resulting in an additional provision for loan losses of $536 thousand. The total allowance for specific impaired loans increased $106 thousand for the six months ending June 30, 2014 and decreased $28 thousand for the three months ending June 30, 2014. Other real estate owned, which is measured at fair value less costs to sell, had a net carrying amount of $1.2 million, which is made up of the outstanding balance of $2.7 million, net of a valuation allowance of $1.5 million at June 30, 2014. The Company recorded $10 thousand in write-downs of other real estate owned properties for the six months and three months ending June 30, 2014 and none for the same time periods in 2013 | |||||||||||||||||
Loan servicing rights, which are carried at the lower of cost or fair value, were carried at their fair value of $344 thousand, which is made up of the outstanding balance of $414 thousand, net of a valuation allowance of $70 thousand at June 30, 2014. The Bank recorded net write-downs of $12 thousand for the six months ending June 30, 2014 and write-downs of $17 thousand for the three months ending June 30, 2014. At December 31, 2013, loan servicing rights were carried at their fair value of $201 thousand, which is made up of the outstanding balance of $260 thousand, net of a valuation allowance of $59 thousand. | |||||||||||||||||
The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at June 30, 2014 and December 31, 2013: | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Range | |||||||||||||||||
Fair | Valuation | Unobservable | (Weighted | ||||||||||||||
Value | Technique(s) | Input(s) | Average) | ||||||||||||||
Impaired loans | |||||||||||||||||
Real estate mortgage: | |||||||||||||||||
1-4 family residential | 1,137 | sales comparison | adjustment for | 0%-99% | |||||||||||||
differences | -6% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Multi-family residential | 295 | sales comparison | adjustment for | 0%-32% | |||||||||||||
differences | -3% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Non-farm & non-residential | 1,276 | sales comparison | adjustment for | 0%-61% | |||||||||||||
differences | -20% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Agricultural: | 220 | sales comparison | adjustment for | 5%-44% | |||||||||||||
differences | -24% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Other real estate owned: | |||||||||||||||||
Residential | 1,180 | sales comparison | adjustment for | 0%-32% | |||||||||||||
differences | -6% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
income approach | capitalization rate | 8%-8% | |||||||||||||||
-8% | |||||||||||||||||
Loan Servicing Rights | 344 | discounted cash flow | constant prepayment | 7%-22% | |||||||||||||
rates | -11% | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Range | |||||||||||||||||
Fair | Valuation | Unobservable | (Weighted | ||||||||||||||
Value | Technique(s) | Input(s) | Average) | ||||||||||||||
Impaired loans | |||||||||||||||||
Real estate mortgage: | |||||||||||||||||
1-4 family residential | 1,420 | sales comparison | adjustment for | 0%-99% | |||||||||||||
differences | -14% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Multi-family residential | 199 | sales comparison | adjustment for | 12%-32% | |||||||||||||
differences | -22% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Non-farm & non-residential | 36 | sales comparison | adjustment for | 0%-61% | |||||||||||||
differences | -31% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Agricultural | 275 | sales comparison | adjustment for | 5%-44% | |||||||||||||
differences | -20% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Other real estate owned: | |||||||||||||||||
Residential | 1,361 | sales comparison | adjustment for | 0%-33% | |||||||||||||
differences | -4% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
income approach | capitalization rate | 8%-8% | |||||||||||||||
-8% | |||||||||||||||||
Loan Servicing Rights | 201 | discounted cash flow | constant prepayment | 7%-23% | |||||||||||||
rates | -10% | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The carrying amounts and estimated fair values of financial instruments, at June 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||
June 30, 2014: | |||||||||||||||||
(in thousands) | |||||||||||||||||
Carrying | |||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 15,039 | $ | 15,039 | $ | — | $ | — | $ | 15,039 | |||||||
Securities | 224,168 | 294 | 223,874 | — | 224,168 | ||||||||||||
Trading Assets | 5,242 | 5,242 | — | 5,242 | |||||||||||||
Mortgage loans held for sale | 495 | — | 500 | — | 500 | ||||||||||||
Loans, net | 490,520 | — | — | 490,183 | 490,183 | ||||||||||||
FHLB Stock | 5,981 | — | — | — | N/A | ||||||||||||
Interest receivable | 3,254 | — | 1,216 | 2,038 | 3,254 | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | 597,409 | $ | 415,247 | $ | 184,104 | $ | — | $ | 599,351 | |||||||
Securities sold under agreements to repurchase and other borrowings | 11,297 | — | 11,459 | — | 11,459 | ||||||||||||
Federal Funds Purchased | 4,649 | 4,649 | — | — | 4,649 | ||||||||||||
FHLB advances | 81,414 | — | 77,953 | — | 77,953 | ||||||||||||
Subordinated Debentures | 7,217 | — | — | 7,210 | 7,210 | ||||||||||||
Interest payable | 679 | — | 670 | 9 | 679 | ||||||||||||
December 31, 2013: | |||||||||||||||||
(in thousands) | |||||||||||||||||
Carrying | |||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 23,160 | $ | 23,160 | $ | — | $ | — | $ | 23,160 | |||||||
Securities | 230,396 | 289 | 230,107 | — | 230,396 | ||||||||||||
Mortgage loans held for sale | 223 | — | 229 | — | 229 | ||||||||||||
Loans, net | 463,214 | — | — | 459,796 | 459,796 | ||||||||||||
FHLB Stock | 6,731 | — | — | — | N/A | ||||||||||||
Interest receivable | 3,618 | — | 1,315 | 2,303 | 3,618 | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | 617,400 | $ | 428,239 | $ | 191,523 | $ | — | $ | 619,762 | |||||||
Securities sold under agreements to repurchase and other borrowings | 12,867 | — | 13,013 | — | 13,013 | ||||||||||||
FHLB advances | 57,847 | — | 52,220 | — | 52,220 | ||||||||||||
Subordinated Debentures | 7,217 | — | — | 7,217 | 7,217 | ||||||||||||
Interest Payable | 736 | 727 | 9 | 736 | |||||||||||||
The methods and assumptions, not previously presented, used to estimate fair values are described as follows: | |||||||||||||||||
Cash and Cash Equivalents - The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. | |||||||||||||||||
FHLB Stock - It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability. | |||||||||||||||||
Loans - Fair values of loans, excluding loans held for sale, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods used to estimate the fair value of loans do not necessarily represent an exit price. | |||||||||||||||||
The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification. | |||||||||||||||||
Deposits - The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. The carrying amounts of variable rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date resulting in a Level 1 classification. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. | |||||||||||||||||
Securities Sold Under Agreements to Repurchase and Other Borrowings - The carrying amounts of borrowings under repurchase agreements approximate their fair values resulting in a Level 2 classification. | |||||||||||||||||
The carrying amount of the Company’s variable rate borrowings approximate their fair values resulting in a Level 2 classification. | |||||||||||||||||
Federal Funds Purchased - The carrying amounts of federal funds purchased approximate fair values and are classified as Level 1. | |||||||||||||||||
FHLB Advances and Subordinated Debentures - The fair values of the Company’s FHLB advances are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. | |||||||||||||||||
The fair values of the Company’s Subordinated Debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification. | |||||||||||||||||
Accrued Interest Receivable/Payable - The carrying amounts of accrued interest approximate fair value resulting in a Level 2 or Level 3 classification based on the level of the related asset/liability. | |||||||||||||||||
Off-balance Sheet Instruments - Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of off-balance sheet instruments is not material. |
CHANGES_IN_ACCUMULATED_OTHER_C
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | ' | |||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | ' | |||||||
9. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | ||||||||
Changes in Accumulated Other Comprehensive Income by Component (1) (unaudited) | ||||||||
(in thousands) | ||||||||
Unrealized | ||||||||
Gains and Losses on | ||||||||
Available for Sale | ||||||||
Securities | ||||||||
For the Six Months Ending June 30 | ||||||||
2014 | 2013 | |||||||
Beginning Balance | $ | (5,126 | ) | $ | 4,283 | |||
Unrealized holding gains (losses) for the period, net of tax | 5,267 | (5,465 | ) | |||||
Reclassification adjustment for: | ||||||||
Securities gains realized in income, net | (433 | ) | (774 | ) | ||||
Income taxes | (147 | ) | (263 | ) | ||||
(286 | ) | (511 | ) | |||||
Net current period other comprehensive income | 4,981 | (5,976 | ) | |||||
Ending balance | $ | (145 | ) | $ | (1,693 | ) | ||
(1) All amounts are net of tax. | ||||||||
Unrealized | ||||||||
Gains and Losses on | ||||||||
Available for Sale | ||||||||
Securities | ||||||||
For the Three Months Ending June 30 | ||||||||
2014 | 2013 | |||||||
Beginning Balance | $ | (1,875 | ) | $ | 3,031 | |||
Unrealized holding gains (losses) for the period, net of tax | 1,892 | (4,404 | ) | |||||
Reclassification adjustment for: | ||||||||
Securities gains realized in income, net | (245 | ) | (485 | ) | ||||
Income taxes | (83 | ) | (165 | ) | ||||
(162 | ) | (320 | ) | |||||
Net current period other comprehensive income | 1,730 | (4,724 | ) | |||||
Ending balance | $ | (145 | ) | $ | (1,693 | ) | ||
(2) All amounts are net of tax. | ||||||||
The following is significant amounts reclassified out of each component of accumulated other comprehensive Income (Loss) for the six months ending June 30, 2014 and 2013: | ||||||||
June 30, 2014 | ||||||||
Details about | Amount | Affected Line Item | ||||||
Accumulated Other | Reclassified From | in the Statement | ||||||
Comprehensive | Accumulated Other | Where Net | ||||||
Income Components | Comprehensive Income | Income is Presented | ||||||
Unrealized gains and losses on available-for-sale securities | $ | (433 | ) | Securities gains, net | ||||
147 | Provision for income taxes | |||||||
(286 | ) | Net of tax | ||||||
June 30, 2013 | ||||||||
Details about | Amount | Affected Line Item | ||||||
Accumulated Other | Reclassified From | in the Statement | ||||||
Comprehensive | Accumulated Other | Where Net | ||||||
Income Components | Comprehensive Income | Income is Presented | ||||||
Unrealized gains and losses on available-for-sale securities | $ | (774 | ) | Securities gains, net | ||||
263 | Provision for income taxes | |||||||
(511 | ) | Net of tax | ||||||
The following is significant amounts reclassified out of each component of accumulated other comprehensive Income (Loss) for the three months ending June 30, 2014 and 2013: | ||||||||
June 30, 2014 | ||||||||
Details about | Amount | Affected Line Item | ||||||
Accumulated Other | Reclassified From | in the Statement | ||||||
Comprehensive | Accumulated Other | Where Net | ||||||
Income Components | Comprehensive Income | Income is Presented | ||||||
Unrealized gains and losses on available-for-sale securities | $ | (245 | ) | Securities gains, net | ||||
83 | Provision for income taxes | |||||||
(162 | ) | Net of tax | ||||||
June 30, 2013 | ||||||||
Details about | Amount | Affected Line Item | ||||||
Accumulated Other | Reclassified From | in the Statement | ||||||
Comprehensive | Accumulated Other | Where Net | ||||||
Income Components | Comprehensive Income | Income is Presented | ||||||
Unrealized gains and losses on available-for-sale securities | $ | (485 | ) | Securities gains, net | ||||
165 | Provision for income taxes | |||||||
(320 | ) | Net of tax | ||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Basis of Presentation | ' |
Basis of Presentation: The consolidated financial statements include the accounts of Kentucky Bancshares, Inc. (the “Company”, “we”, “our” or “us”), its wholly-owned subsidiary, Kentucky Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, KB Special Assets Unit, LLC. Intercompany transactions and balances have been eliminated in consolidation. | |
Nature of Operations | ' |
Nature of Operations: The Bank operates under a state bank charter and provides full banking services, including trust services, to customers located in Bourbon, Clark, Elliott, Fayette, Harrison, Jessamine, Madison, Rowan, Scott, Woodford and adjoining counties in Kentucky. Management continues to consider opportunities for branch expansion and will also consider acquisition opportunities that help advance its strategic objectives. As a state bank, the Bank is subject to regulation by the Kentucky Department of Financial Institutions and the Federal Deposit Insurance Corporation (“FDIC”). The Company, a bank holding company, is regulated by the Federal Reserve. On July 9, 2014, a new subsidiary of the Company was incorporated under the name KBI Insurance Company, Inc. KBI Insurance Company, Inc. is a subsidiary of Kentucky Bancshares, Inc. and is located in Las Vegas, Nevada. It is a captive insurance subsidiary which insures various liability and property damage policies for Kentucky Bancshares, Inc. and its related subsidiaries. KBI Insurance Company, Inc. is regulated by the State of Nevada Division of Insurance. | |
Estimates in the Financial Statements | ' |
Estimates in the Financial Statements: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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 those estimates and such differences could be material to the financial statements. The allowance for loan losses, loss contingencies, mortgage servicing rights, real estate owned, goodwill and fair value of financial instruments are particularly subject to change. | |
Trading Assets | ' |
Trading Assets: The Company engages in trading activities for its own account. Securities that are held principally for resale in the near term are recorded at fair value with changes in fair value included in earnings. Interest and dividends are included in net interest income. | |
Loss Contingencies | ' |
Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. | |
Pension Matter | ' |
Pension Matter: The Company terminated the Kentucky Bancshares, Inc. Retirement Plan and Trust (the “Plan”) in a standard termination, with a termination date of December 31, 2008. Prior to such termination, the Pension Protection Act of 2006 (“PPA”) had amended Internal Revenue Code (“IRC”) Section 417(e)(3) in part by changing the definition of “applicable interest rate” in a manner that in most cases (when combined with other changes to IRC Section 417(e)(3)) would result in a decrease in the value of a participant’s or beneficiary’s plan benefits under pension plans such as the Company’s Plan with the new definition applicable (for most plans, including the Plan) to lump sums with annuity starting dates in or after the 2008 plan year. The Plan had determined in mid-2008 to comply with IRC Section 417(e)(3), as amended by PPA, by using the assumptions governing minimum lump sums, rather than by using the pre-PPA minimum lump sum assumptions, and operated the Plan in compliance with that decision. As permitted by the IRC, the Plan was amended on February 24, 2009 (after the termination of the Plan on December 31, 2008) to formalize that decision in accordance with Section 1107 of PPA. | |
The Internal Revenue Service issued a favorable determination as to the Plan termination in July 2010. Subsequent to Plan termination and distributions to Plan participants, the Plan was selected for audit by the Pension Benefit Guaranty Corporation (“PBGC”). The PBGC asserted that the February, 2009 amendment to the Plan violated PBGC Regulation Section 4041.8(a) because the amendment served to lower benefits to Plan beneficiaries. The PBGC filed a Complaint in May 2013 in United States District Court (Eastern District of Kentucky) to require the Company to make additional distributions to Plan beneficiaries. On March 17, 2014, the United States District Court (Eastern District of Kentucky) issued an Opinion and Order entering judgment in favor of the PBGC and ruling that the Company must comply with the PBGC’s determination respecting the Plan. The Company is appraising its options with respect to this judgment, and has appealed the decision. The appeal is pending. However, in light of the court’s opinion, the Company accrued approximately $1.6 million as of December 31, 2013 for this matter. The accrued balance for this matter remains $1.6 million at June 30, 2014. Moreover, in the event the subject court decision is not overturned, the Company believes it has claims for further contribution towards payment of this liability from professionals who assisted the Company in the termination of the Plan. | |
Reclassifications | ' |
Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior period net income or stockholders’ equity. | |
Adoption of New Accounting Standards | ' |
Adoption of New Accounting Standards | |
In January 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-04 - Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage loans upon Foreclosure. This standard provides clarification when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be removed from the balance sheet and other real estate owned recognized. These amendments clarify that when an in-substance foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either: (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. For public business entities (PBEs) this ASU is effective for annual periods, and interim periods within those annual periods, beginning after Dec 15, 2014. For entities that are not PBEs, this ASU is effective for annual periods beginning after Dec 15, 2014, and for interim periods within annual periods beginning after Dec 15, 2015. Early adoption is permitted. The effect of adopting this standard is not expected to have a material effect on the Company’s results of operations or financial condition. | |
In May 2014, FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU creates a new topic, Topic 606, to provide guidance on revenue recognition for entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets. The core principle of the guidance 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. Additional disclosures are required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2016. Early adoption is not permitted. Management is currently evaluating the impact of the adoption of this guidance on the Company’s financial statements. |
SECURITIES_Tables
SECURITIES (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
SECURITIES | ' | |||||||||||||||||||
Schedule of securities available for sale | ' | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
Cost | Gains | Losses | Value | |||||||||||||||||
Available for Sale | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
U.S. government agencies | $ | 69,062 | $ | 19 | $ | (1,809 | ) | $ | 67,272 | |||||||||||
States and political subdivisions | 85,375 | 2,894 | (731 | ) | 87,538 | |||||||||||||||
Mortgage-backed - residential | 69,681 | 315 | (932 | ) | 69,064 | |||||||||||||||
Equity securities | 270 | 24 | — | 294 | ||||||||||||||||
Total | $ | 224,388 | $ | 3,252 | $ | (3,472 | ) | $ | 224,168 | |||||||||||
December 31, 2013 | ||||||||||||||||||||
U.S. government agencies | $ | 73,930 | $ | 51 | $ | (4,695 | ) | $ | 69,286 | |||||||||||
States and political subdivisions | 91,043 | 1,614 | (2,474 | ) | 90,183 | |||||||||||||||
Mortgage-backed - residential | 72,920 | 44 | (2,326 | ) | 70,638 | |||||||||||||||
Equity securities | 270 | 19 | — | 289 | ||||||||||||||||
Total | $ | 238,163 | $ | 1,728 | $ | (9,495 | ) | $ | 230,396 | |||||||||||
Schedule of amortized cost and fair value of securities by contractual maturity | ' | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Amortized | Fair | |||||||||||||||||||
Cost | Value | |||||||||||||||||||
Due in one year or less | $ | 467 | $ | 469 | ||||||||||||||||
Due after one year through five years | 8,888 | 8,897 | ||||||||||||||||||
Due after five years through ten years | 80,302 | 79,607 | ||||||||||||||||||
Due after ten years | 64,780 | 65,837 | ||||||||||||||||||
154,437 | 154,810 | |||||||||||||||||||
Mortgage-backed - residential | 69,681 | 69,064 | ||||||||||||||||||
Equity | 270 | 294 | ||||||||||||||||||
Total | $ | 224,388 | $ | 224,168 | ||||||||||||||||
Schedule of securities with unrealized losses not recognized in income | ' | |||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Description of Securities | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
U.S. Government agencies | $ | 12,771 | $ | (142 | ) | $ | 53,774 | $ | (1,667 | ) | $ | 66,545 | $ | (1,809 | ) | |||||
States and municipals | 4,426 | (66 | ) | 13,892 | (665 | ) | 18,318 | (731 | ) | |||||||||||
Mortgage-backed - residential | 10,695 | (167 | ) | 25,753 | (765 | ) | 36,448 | (932 | ) | |||||||||||
Total temporarily impaired | $ | 27,892 | $ | (375 | ) | $ | 93,419 | $ | (3,097 | ) | $ | 121,311 | $ | (3,472 | ) | |||||
December 31, 2013 | ||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
Description of Securities | Value | Loss | Value | Loss | Value | Loss | ||||||||||||||
U.S. Government agencies | $ | 57,203 | $ | (3,812 | ) | $ | 8,117 | $ | (883 | ) | $ | 65,320 | $ | (4,695 | ) | |||||
States and municipals | 32,289 | (2,106 | ) | 2,879 | (368 | ) | 35,168 | (2,474 | ) | |||||||||||
Mortgage-backed - residential | 62,126 | (2,326 | ) | — | — | 62,126 | (2,326 | ) | ||||||||||||
Total temporarily impaired | $ | 151,618 | $ | (8,244 | ) | $ | 10,996 | $ | (1,251 | ) | $ | 162,614 | $ | (9,495 | ) | |||||
LOANS_Tables
LOANS (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
LOANS | ' | |||||||||||||||||||
Schedule of loans | ' | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||
6/30/14 | 12/31/13 | |||||||||||||||||||
Commercial | $ | 33,727 | $ | 34,654 | ||||||||||||||||
Real estate construction | 13,393 | 11,177 | ||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 208,620 | 194,388 | ||||||||||||||||||
Multi-family residential | 18,805 | 16,420 | ||||||||||||||||||
Non-farm & non-residential | 131,795 | 126,791 | ||||||||||||||||||
Agricultural | 72,605 | 68,002 | ||||||||||||||||||
Consumer | 16,947 | 17,065 | ||||||||||||||||||
Other | 242 | 158 | ||||||||||||||||||
Total | $ | 496,134 | $ | 468,655 | ||||||||||||||||
Schedule of activity in the allowance for loan losses | ' | |||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision | Balance | ||||||||||||||||
Commercial | $ | 230 | $ | 200 | $ | — | $ | 201 | $ | 231 | ||||||||||
Real estate Construction | 358 | — | 8 | (7 | ) | 359 | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 2,169 | 88 | 16 | 227 | 2,324 | |||||||||||||||
Multi-family residential | 427 | — | — | (100 | ) | 327 | ||||||||||||||
Non-farm & non-residential | 564 | — | 367 | (197 | ) | 734 | ||||||||||||||
Agricultural | 578 | — | 25 | (57 | ) | 546 | ||||||||||||||
Consumer | 548 | 153 | 41 | 107 | 543 | |||||||||||||||
Other | 51 | 202 | 159 | 25 | 33 | |||||||||||||||
Unallocated | 516 | — | — | 1 | 517 | |||||||||||||||
$ | 5,441 | $ | 643 | $ | 616 | $ | 200 | $ | 5,614 | |||||||||||
Three Months Ended June, 30 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision | Balance | ||||||||||||||||
Commercial | $ | 208 | $ | — | $ | — | $ | 23 | $ | 231 | ||||||||||
Real estate Construction | 329 | — | 4 | 26 | 359 | |||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 2,111 | 25 | 4 | 234 | 2,324 | |||||||||||||||
Multi-family residential | 401 | — | — | (74 | ) | 327 | ||||||||||||||
Non-farm & non-residential | 930 | — | — | (196 | ) | 734 | ||||||||||||||
Agricultural | 553 | — | 1 | (8 | ) | 546 | ||||||||||||||
Consumer | 550 | 76 | 23 | 46 | 543 | |||||||||||||||
Other | 11 | 105 | 72 | 55 | 33 | |||||||||||||||
Unallocated | 523 | — | — | (6 | ) | 517 | ||||||||||||||
$ | 5,616 | $ | 206 | $ | 104 | $ | 100 | $ | 5,614 | |||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision | Balance | ||||||||||||||||
Commercial | $ | 150 | $ | 11 | $ | 28 | $ | (16 | ) | $ | 151 | |||||||||
Real estate Construction | 918 | 578 | 21 | 12 | 373 | |||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,989 | 141 | 56 | 80 | 1,984 | |||||||||||||||
Multi-family residential | 414 | 161 | 39 | 189 | 481 | |||||||||||||||
Non-farm & non-residential | 628 | — | 18 | 31 | 677 | |||||||||||||||
Agricultural | 845 | 86 | 3 | (101 | ) | 661 | ||||||||||||||
Consumer | 517 | 252 | 18 | 265 | 548 | |||||||||||||||
Other | 54 | 309 | 206 | 141 | 92 | |||||||||||||||
Unallocated | 532 | — | — | (1 | ) | 531 | ||||||||||||||
$ | 6,047 | $ | 1,538 | $ | 389 | $ | 600 | $ | 5,498 | |||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||
Balance | Charge-offs | Recoveries | Provision | Balance | ||||||||||||||||
Commercial | $ | 135 | $ | 5 | $ | — | $ | 21 | $ | 151 | ||||||||||
Real estate Construction | 497 | — | 16 | (140 | ) | 373 | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,974 | 16 | 30 | (4 | ) | 1,984 | ||||||||||||||
Multi-family residential | 493 | 161 | 39 | 110 | 481 | |||||||||||||||
Non-farm & non-residential | 611 | — | 10 | 56 | 677 | |||||||||||||||
Agricultural | 747 | — | 1 | (87 | ) | 661 | ||||||||||||||
Consumer | 511 | 104 | 7 | 134 | 548 | |||||||||||||||
Other | 99 | 172 | 80 | 85 | 92 | |||||||||||||||
Unallocated | 556 | — | — | (25 | ) | 531 | ||||||||||||||
$ | 5,623 | $ | 458 | $ | 183 | $ | 150 | $ | 5,498 | |||||||||||
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method | ' | |||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Individually | Collectively | |||||||||||||||||||
Evaluated for | Evaluated for | |||||||||||||||||||
Impairment | Impairment | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||
Commercial | $ | — | $ | 231 | $ | 231 | ||||||||||||||
Real estate construction | — | 359 | 359 | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 326 | 1,998 | 2,324 | |||||||||||||||||
Multi-family residential | 50 | 277 | 327 | |||||||||||||||||
Non-farm & non-residential | 182 | 552 | 734 | |||||||||||||||||
Agricultural | 260 | 286 | 546 | |||||||||||||||||
Consumer | — | 543 | 543 | |||||||||||||||||
Other | — | 33 | 33 | |||||||||||||||||
Unallocated | — | 517 | 517 | |||||||||||||||||
$ | 818 | $ | 4,796 | $ | 5,614 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | $ | — | $ | 33,727 | $ | 33,727 | ||||||||||||||
Real estate construction | — | 13,393 | 13,393 | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 3,196 | 205,424 | 208,620 | |||||||||||||||||
Multi-family residential | 345 | 18,460 | 18,805 | |||||||||||||||||
Non-farm & non-residential | 3,937 | 127,858 | 131,795 | |||||||||||||||||
Agricultural | 9,534 | 63,071 | 72,605 | |||||||||||||||||
Consumer | — | 16,947 | 16,947 | |||||||||||||||||
Other | — | 242 | 242 | |||||||||||||||||
$ | 17,012 | $ | 479,122 | $ | 496,134 | |||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Individually | Collectively | |||||||||||||||||||
Evaluated for | Evaluated for | |||||||||||||||||||
Impairment | Impairment | Total | ||||||||||||||||||
Allowance for Loan Losses: | ||||||||||||||||||||
Commercial | $ | — | $ | 230 | $ | 230 | ||||||||||||||
Real estate construction | — | 358 | 358 | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 228 | 1,941 | 2,169 | |||||||||||||||||
Multi-family residential | 76 | 351 | 427 | |||||||||||||||||
Non-farm & non-residential | 110 | 454 | 564 | |||||||||||||||||
Agricultural | 298 | 280 | 578 | |||||||||||||||||
Consumer | — | 548 | 548 | |||||||||||||||||
Other | — | 51 | 51 | |||||||||||||||||
Unallocated | — | 516 | 516 | |||||||||||||||||
$ | 712 | $ | 4,729 | $ | 5,441 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | $ | — | $ | 34,654 | $ | 34,654 | ||||||||||||||
Real estate construction | — | 11,177 | 11,177 | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 2,873 | 191,515 | 194,388 | |||||||||||||||||
Multi-family residential | 274 | 16,146 | 16,420 | |||||||||||||||||
Non-farm & non-residential | 2,716 | 124,075 | 126,791 | |||||||||||||||||
Agricultural | 7,673 | 60,329 | 68,002 | |||||||||||||||||
Consumer | — | 17,065 | 17,065 | |||||||||||||||||
Other | — | 158 | 158 | |||||||||||||||||
$ | 13,536 | $ | 455,119 | $ | 468,655 | |||||||||||||||
Schedule of loans individually evaluated for impairment by class of loans | ' | |||||||||||||||||||
The following table presents loans individually evaluated for impairment by class of loans as of and for the six months ended June 30, 2014 (in thousands): | ||||||||||||||||||||
Unpaid | Allowance for | Average | Interest | Cash Basis | ||||||||||||||||
Principal | Recorded | Loan Losses | Recorded | Income | Interest | |||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | Recognized | |||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Real estate construction | — | — | — | — | — | — | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,302 | 1,302 | — | 1,002 | — | — | ||||||||||||||
Multi-family residential | — | — | — | — | — | — | ||||||||||||||
Non-farm & non-residential | — | — | — | 267 | — | — | ||||||||||||||
Agricultural | 4,780 | 4,780 | — | 2,684 | 80 | 80 | ||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | — | — | — | — | — | — | ||||||||||||||
Real estate construction | — | — | — | — | — | — | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,894 | 1,894 | 326 | 1,991 | 44 | 44 | ||||||||||||||
Multi-family residential | 345 | 345 | 50 | 323 | 5 | 5 | ||||||||||||||
Non-farm & non-residential | 3,937 | 3,937 | 182 | 3,043 | 73 | 73 | ||||||||||||||
Agricultural | 4,754 | 4,754 | 260 | 5,034 | 19 | 19 | ||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||
Other | — | — | — | — | — | |||||||||||||||
Total | $ | 17,012 | $ | 17,012 | $ | 818 | $ | 14,344 | $ | 221 | $ | 221 | ||||||||
The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2013 (in thousands): | ||||||||||||||||||||
Unpaid | Allowance for | Average | Interest | Cash Basis | ||||||||||||||||
Principal | Recorded | Loan Losses | Recorded | Income | Interest | |||||||||||||||
Balance | Investment | Allocated | Investment | Recognized | Recognized | |||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||
Real estate construction | — | — | — | — | — | — | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 824 | 793 | — | 1,217 | 28 | 28 | ||||||||||||||
Multi-family residential | — | — | — | — | — | — | ||||||||||||||
Non-farm & non-residential | 1,650 | 803 | — | 1,471 | 81 | 81 | ||||||||||||||
Agricultural | 2,912 | 2,826 | — | 2,802 | 123 | 123 | ||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | — | — | — | — | — | — | ||||||||||||||
Real estate construction | — | — | — | 607 | — | — | ||||||||||||||
Real estate mortgage | ||||||||||||||||||||
1-4 family residential | 2,080 | 2,080 | 228 | 1,349 | 96 | 96 | ||||||||||||||
Multi-family residential | 274 | 274 | 76 | 443 | 3 | 3 | ||||||||||||||
Non-farm & non-residential | 1,913 | 1,913 | 110 | 1,938 | 79 | 79 | ||||||||||||||
Agricultural | 4,847 | 4,847 | 298 | 4,864 | 287 | 287 | ||||||||||||||
Consumer | — | — | — | — | — | — | ||||||||||||||
Other | — | — | — | — | — | |||||||||||||||
Total | $ | 14,501 | $ | 13,536 | $ | 712 | $ | 14,691 | $ | 697 | $ | 697 | ||||||||
The following table presents loans individually evaluated for impairment by class of loans as of and for the six months ended June 30, 2013 (in thousands): | ||||||||||||||||||||
Average | Interest | Cash Basis | ||||||||||||||||||
Recorded | Income | Interest | ||||||||||||||||||
Investment | Recognized | Recognized | ||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | ||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,253 | 21 | 21 | |||||||||||||||||
Multi-family residential | — | — | — | |||||||||||||||||
Non-farm & non-residential | 1,625 | 40 | 40 | |||||||||||||||||
Agricultural | 2,873 | 9 | 9 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Other | — | — | — | |||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | — | — | — | |||||||||||||||||
Real estate construction | — | — | ||||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 874 | 21 | 21 | |||||||||||||||||
Multi-family residential | 511 | 3 | 3 | |||||||||||||||||
Non-farm & non-residential | 2,641 | 40 | 40 | |||||||||||||||||
Agricultural | 4,711 | 57 | 57 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Other | — | — | ||||||||||||||||||
Total | $ | 14,488 | $ | 191 | $ | 191 | ||||||||||||||
The following tables present loans individually evaluated for impairment by class of loans for the three months ending June 30, 2014 and June 30, 2013 (in thousands): | ||||||||||||||||||||
Three Months Ending June 30, 2014 | ||||||||||||||||||||
Average | Interest | Cash Basis | ||||||||||||||||||
Recorded | Income | Interest | ||||||||||||||||||
Investment | Recognized | Recognized | ||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | ||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,562 | — | — | |||||||||||||||||
Multi-family residential | — | — | — | |||||||||||||||||
Non-farm & non-residential | — | — | — | |||||||||||||||||
Agricultural | 2,836 | 77 | 77 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Other | — | — | — | |||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | — | — | — | |||||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,377 | 38 | 38 | |||||||||||||||||
Multi-family residential | 310 | 1 | 1 | |||||||||||||||||
Non-farm & non-residential | 3,553 | 48 | 48 | |||||||||||||||||
Agricultural | 4,755 | 19 | 19 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Other | — | — | — | |||||||||||||||||
Total | $ | 14,393 | $ | 183 | $ | 183 | ||||||||||||||
Three Months Ending June 30, 2013 | ||||||||||||||||||||
Average | Interest | Cash Basis | ||||||||||||||||||
Recorded | Income | Interest | ||||||||||||||||||
Investment | Recognized | Recognized | ||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | ||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,035 | 2 | 2 | |||||||||||||||||
Multi-family residential | — | — | — | |||||||||||||||||
Non-farm & non-residential | 1,065 | 20 | 20 | |||||||||||||||||
Agricultural | 2,854 | 3 | 3 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Other | — | — | — | |||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||
Commercial | — | — | — | |||||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,016 | 7 | 7 | |||||||||||||||||
Multi-family residential | 669 | 1 | 1 | |||||||||||||||||
Non-farm & non-residential | 2,421 | 20 | 20 | |||||||||||||||||
Agricultural | 4,744 | 7 | 7 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Other | — | — | — | |||||||||||||||||
Total | $ | 13,804 | $ | 60 | $ | 60 | ||||||||||||||
Schedule of recorded investment in nonaccrual, loans past due over 90 days still on accrual and accruing troubled debt restructurings by class of loans | ' | |||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Loans Past Due | ||||||||||||||||||||
Over 90 Days | Accruing | |||||||||||||||||||
Still | Troubled Debt | |||||||||||||||||||
Nonaccrual | Accruing | Restructurings | ||||||||||||||||||
Commercial | $ | 299 | $ | — | $ | — | ||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 2,350 | 266 | 487 | |||||||||||||||||
Multi-family residential | 85 | — | — | |||||||||||||||||
Non-farm & non-residential | 988 | — | 1,853 | |||||||||||||||||
Agricultural | 216 | — | 4,530 | |||||||||||||||||
Consumer | — | — | — | |||||||||||||||||
Total | $ | 3,938 | $ | 266 | $ | 6,870 | ||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Loans Past Due | ||||||||||||||||||||
Over 90 Days | Accruing | |||||||||||||||||||
Still | Troubled Debt | |||||||||||||||||||
Nonaccrual | Accruing | Restructurings | ||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | ||||||||||||||
Real estate construction | — | — | — | |||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,171 | 314 | 493 | |||||||||||||||||
Multi-family residential | 275 | — | — | |||||||||||||||||
Non-farm & non-residential | 803 | — | 1,878 | |||||||||||||||||
Agricultural | 717 | 232 | 4,530 | |||||||||||||||||
Consumer | 8 | 8 | — | |||||||||||||||||
Total | $ | 2,974 | $ | 554 | $ | 6,901 | ||||||||||||||
Schedule of aging of the recorded investment in past due and non-accrual loans | ' | |||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
30–59 | 60–89 | Loans Past Due | Total | |||||||||||||||||
Days | Days | Over 90 Days | Past Due & | Loans Not | ||||||||||||||||
Past Due | Past Due | Still Accruing | Non-accrual | Non-accrual | Past Due | |||||||||||||||
Commercial | $ | 79 | $ | — | $ | — | $ | 299 | $ | 378 | $ | 33,349 | ||||||||
Real estate construction | — | — | — | — | — | 13,393 | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,788 | 433 | 266 | 2,350 | 4,837 | 203,783 | ||||||||||||||
Multi-family residential | — | 260 | — | 85 | 345 | 18,460 | ||||||||||||||
Non-farm & non-residential | 777 | — | — | 988 | 1,765 | 130,030 | ||||||||||||||
Agricultural | 312 | — | — | 216 | 528 | 72,077 | ||||||||||||||
Consumer | 151 | 44 | — | — | 195 | 16,752 | ||||||||||||||
Other | — | — | — | — | — | 242 | ||||||||||||||
Total | $ | 3,107 | $ | 737 | $ | 266 | $ | 3,938 | $ | 8,048 | $ | 488,086 | ||||||||
As of December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
30–59 | 60–89 | Greater than | Total | |||||||||||||||||
Days | Days | 90 Days | Past Due & | Loans Not | ||||||||||||||||
Past Due | Past Due | Past Due | Non-accrual | Non-accrual | Past Due | |||||||||||||||
Commercial | $ | 49 | $ | — | $ | — | $ | — | $ | 49 | $ | 34,605 | ||||||||
Real estate construction | 175 | — | — | — | 175 | 11,002 | ||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 1,981 | 1,285 | 314 | 1,171 | 4,751 | 189,637 | ||||||||||||||
Multi-family residential | — | — | — | 275 | 275 | 16,145 | ||||||||||||||
Non-farm & non-residential | 503 | — | — | 803 | 1,306 | 125,485 | ||||||||||||||
Agricultural | 155 | — | 232 | 717 | 1,104 | 66,898 | ||||||||||||||
Consumer | 102 | 27 | 8 | 8 | 145 | 16,920 | ||||||||||||||
Other | — | — | — | — | — | 158 | ||||||||||||||
Total | $ | 2,965 | $ | 1,312 | $ | 554 | $ | 2,974 | $ | 7,805 | $ | 460,850 | ||||||||
Schedule of risk category of loans by class of loans | ' | |||||||||||||||||||
As of June 30, 2014 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Special | ||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | |||||||||||||||||
Commercial | $ | 31,932 | $ | 1,241 | $ | 554 | $ | — | ||||||||||||
Real estate construction | 11,934 | 1,459 | — | — | ||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 190,893 | 10,040 | 7,666 | 21 | ||||||||||||||||
Multi-family residential | 16,738 | 1,555 | 512 | — | ||||||||||||||||
Non-farm & non-residential | 125,306 | 5,050 | 1,439 | — | ||||||||||||||||
Agricultural | 58,709 | 12,353 | 1,543 | — | ||||||||||||||||
Total | $ | 435,512 | $ | 31,698 | $ | 11,714 | $ | 21 | ||||||||||||
As of December 31, 2013 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Special | ||||||||||||||||||||
Pass | Mention | Substandard | Doubtful | |||||||||||||||||
Commercial | $ | 32,771 | $ | 1,587 | $ | 296 | $ | — | ||||||||||||
Real estate construction | 9,660 | 1,517 | — | — | ||||||||||||||||
Real estate mortgage: | ||||||||||||||||||||
1-4 family residential | 176,553 | 10,346 | 7,489 | — | ||||||||||||||||
Multi-family residential | 14,392 | 1,579 | 449 | — | ||||||||||||||||
Non-farm & non-residential | 120,195 | 5,327 | 1,269 | — | ||||||||||||||||
Agricultural | 56,713 | 7,297 | 3,992 | — | ||||||||||||||||
Total | $ | 410,284 | $ | 27,653 | $ | 13,495 | $ | — | ||||||||||||
REAL_ESTATE_OWNED_Tables
REAL ESTATE OWNED (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
REAL ESTATE OWNED | ' | |||||||
Schedule of activity in real estate owned, net | ' | |||||||
Six Months Ended | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Beginning of year | $ | 3,379 | $ | 4,168 | ||||
Additions | 419 | 335 | ||||||
Sales | (1,540 | ) | (924 | ) | ||||
(Additions) subtractions to valuation allowance, net | (10 | ) | 10 | |||||
Recovery from sale in valuation allowance | 58 | 199 | ||||||
End of period | $ | 2,306 | $ | 3,788 | ||||
Schedule of activity in the valuation allowance | ' | |||||||
Six Months Ended | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Beginning of year | $ | 1,524 | $ | 1,668 | ||||
Additions (subtractions) to valuation allowance, net | 10 | (10 | ) | |||||
Recovery from sale | (58 | ) | (199 | ) | ||||
End of period | $ | 1,476 | $ | 1,459 | ||||
Schedule of expenses related to foreclosed assets | ' | |||||||
Six Months Ended | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Net loss (gain) on sales | $ | (70 | ) | $ | (30 | ) | ||
Additions (subtractions) to valuation allowance, net | 10 | (10 | ) | |||||
Operating expenses (receipts), net of rental income | 13 | 45 | ||||||
Repossession expenses, net | 23 | 35 | ||||||
End of period | $ | (47 | ) | $ | 5 | |||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
EARNINGS PER SHARE | ' | |||||||
Schedule of factors used in the earnings per share computation | ' | |||||||
Six Months Ended | ||||||||
June 30 | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Basic Earnings Per Share | ||||||||
Net Income | $ | 3,675 | $ | 3,494 | ||||
Weighted average common shares outstanding | 2,708 | 2,705 | ||||||
Basic earnings per share | $ | 1.36 | $ | 1.29 | ||||
Diluted Earnings Per Share | ||||||||
Net Income | $ | 3,675 | $ | 3,494 | ||||
Weighted average common shares outstanding | 2,708 | 2,705 | ||||||
Add dilutive effects of assumed vesting of stock grants | — | 4 | ||||||
Weighted average common and dilutive potential common shares outstanding | 2,708 | 2,709 | ||||||
Diluted earnings per share | $ | 1.36 | $ | 1.29 | ||||
Three Months Ended | ||||||||
June 30 | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Basic Earnings Per Share | ||||||||
Net Income | $ | 1,904 | $ | 1,785 | ||||
Weighted average common shares outstanding | 2,708 | 2,704 | ||||||
Basic earnings per share | $ | 0.7 | $ | 0.66 | ||||
Diluted Earnings Per Share | ||||||||
Net Income | $ | 1,904 | $ | 1,785 | ||||
Weighted average common shares outstanding | 2,708 | 2,704 | ||||||
Add dilutive effects of assumed vesting of stock grants | — | 4 | ||||||
Weighted average common and dilutive potential common shares outstanding | 2,708 | 2,708 | ||||||
Diluted earnings per share | $ | 0.7 | $ | 0.66 | ||||
STOCK_COMPENSATION_Tables
STOCK COMPENSATION (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
STOCK COMPENSATION | ' | |||||||||||
Summary of activity for the expired Stock Option Plans | ' | |||||||||||
Weighted | ||||||||||||
Weighted | Average | |||||||||||
Average | Remaining | Aggregate | ||||||||||
Exercise | Contractual | Intrinsic | ||||||||||
Shares | Price | Term | Value | |||||||||
Outstanding, beginning of year | 19,100 | $ | 31.5 | |||||||||
Granted | — | — | ||||||||||
Forfeited or expired | (6,375 | ) | 33.56 | |||||||||
Exercised | — | — | ||||||||||
Outstanding, end of period | 12,725 | $ | 30.46 | 10.9 months | $ | — | ||||||
Vested and expected to vest | 12,725 | $ | 30.46 | 10.9 months | $ | — | ||||||
Exercisable, end of period | 12,725 | $ | 30.46 | 10.9 months | $ | — | ||||||
2005 Restricted Stock Grant Plan | ' | |||||||||||
Stock Based Compensation | ' | |||||||||||
Summary of changes in the Company's nonvested shares | ' | |||||||||||
Weighted-Average | Fair | |||||||||||
Grant-Date | Value | |||||||||||
Nonvested Shares | Shares | Fair Value | Per Share | |||||||||
Nonvested at January 1, 2014 | 15,565 | $ | 280,016 | $ | 17.99 | |||||||
Granted | 7,475 | 181,194 | 24.24 | |||||||||
Vested | (4,756 | ) | (84,518 | ) | 17.77 | |||||||
Forfeited | — | — | — | |||||||||
Nonvested at June 30, 2014 | 18,284 | $ | 376,692 | $ | 20.6 | |||||||
2009 Stock Award Plan | ' | |||||||||||
Stock Based Compensation | ' | |||||||||||
Summary of changes in the Company's nonvested shares | ' | |||||||||||
Weighted-Average | Fair | |||||||||||
Grant-Date | Value | |||||||||||
Nonvested Shares | Shares | Fair Value | Per Share | |||||||||
Nonvested at January 1, 2014 | 900 | $ | 20,880 | $ | 23.2 | |||||||
Granted | — | — | — | |||||||||
Vested | (180 | ) | (4,176 | ) | 23.2 | |||||||
Forfeited | — | — | — | |||||||||
Nonvested at June 30, 2014 | 720 | $ | 16,704 | $ | 23.2 | |||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
Schedule of assets measured at fair value on a recurring basis | ' | ||||||||||||||||
Fair Value Measurements at June 30, 2014 Using (In thousands): | |||||||||||||||||
Quoted Prices | |||||||||||||||||
In Active | |||||||||||||||||
Markets for | Significant Other | Significant | |||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||
Fair | Assets | Inputs | Inputs | ||||||||||||||
Description | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
U. S. government agencies | $ | 67,272 | $ | — | $ | 67,272 | $ | — | |||||||||
States and municipals | 87,538 | — | 87,538 | — | |||||||||||||
Mortgage-backed - residential | 69,064 | — | 69,064 | — | |||||||||||||
Equity securities | 294 | 294 | — | — | |||||||||||||
Trading Assets | 5,242 | 5,242 | — | — | |||||||||||||
Total | $ | 229,410 | $ | 5,536 | $ | 223,874 | $ | — | |||||||||
Available for Sale Investment Securities Fair Value Measurements at December 31, 2013 Using (In thousands): | |||||||||||||||||
Quoted Prices | |||||||||||||||||
In Active | |||||||||||||||||
Markets for | Significant Other | Significant | |||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||
Fair | Assets | Inputs | Inputs | ||||||||||||||
Description | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
U. S. government agencies | $ | 69,286 | $ | — | $ | 69,286 | $ | — | |||||||||
States and municipals | 90,183 | — | 90,183 | — | |||||||||||||
Mortgage-backed - residential | 70,638 | — | 70,638 | — | |||||||||||||
Equity securities | 289 | 289 | — | — | |||||||||||||
Total | $ | 230,396 | $ | 289 | $ | 230,107 | $ | — | |||||||||
Schedule of assets measured at fair value on a non-recurring basis | ' | ||||||||||||||||
(In thousands) | |||||||||||||||||
Fair Value Measurements at June 30, 2014 Using: | |||||||||||||||||
Quoted Prices | |||||||||||||||||
In Active | Other | ||||||||||||||||
Markets for | Significant | Significant | |||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||
Carrying | Assets | Inputs | Inputs | ||||||||||||||
Description | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Impaired loans: | |||||||||||||||||
Real Estate Mortgage: | |||||||||||||||||
1-4 family residential | $ | 1,137 | — | — | $ | 1,137 | |||||||||||
Multi-family residential | 295 | — | — | 295 | |||||||||||||
Non-farm & non-residential | 1,276 | — | — | 1,276 | |||||||||||||
Agricultural | 220 | 220 | |||||||||||||||
Other real estate owned: | |||||||||||||||||
Residential | 1,180 | — | — | 1,180 | |||||||||||||
Loan servicing rights | 344 | — | — | 344 | |||||||||||||
(In thousands) | |||||||||||||||||
Fair Value Measurements at December 31, 2013 Using: | |||||||||||||||||
Quoted Prices | |||||||||||||||||
In Active | Other | ||||||||||||||||
Markets for | Significant | Significant | |||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||
Carrying | Assets | Inputs | Inputs | ||||||||||||||
Description | Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Impaired loans: | |||||||||||||||||
Real Estate Mortgage: | |||||||||||||||||
1-4 family residential | $ | 1,420 | — | — | $ | 1,420 | |||||||||||
Multi-family residential | 199 | — | — | 199 | |||||||||||||
Non-farm & non-residential | 36 | — | — | 36 | |||||||||||||
Agricultural | 275 | — | — | 275 | |||||||||||||
Other real estate owned: | |||||||||||||||||
Residential | 1,361 | — | — | 1,361 | |||||||||||||
Loan servicing rights | 201 | — | — | 201 | |||||||||||||
Schedule of quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis | ' | ||||||||||||||||
June 30, 2014 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Range | |||||||||||||||||
Fair | Valuation | Unobservable | (Weighted | ||||||||||||||
Value | Technique(s) | Input(s) | Average) | ||||||||||||||
Impaired loans | |||||||||||||||||
Real estate mortgage: | |||||||||||||||||
1-4 family residential | 1,137 | sales comparison | adjustment for | 0%-99% | |||||||||||||
differences | -6% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Multi-family residential | 295 | sales comparison | adjustment for | 0%-32% | |||||||||||||
differences | -3% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Non-farm & non-residential | 1,276 | sales comparison | adjustment for | 0%-61% | |||||||||||||
differences | -20% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Agricultural: | 220 | sales comparison | adjustment for | 5%-44% | |||||||||||||
differences | -24% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Other real estate owned: | |||||||||||||||||
Residential | 1,180 | sales comparison | adjustment for | 0%-32% | |||||||||||||
differences | -6% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
income approach | capitalization rate | 8%-8% | |||||||||||||||
-8% | |||||||||||||||||
Loan Servicing Rights | 344 | discounted cash flow | constant prepayment | 7%-22% | |||||||||||||
rates | -11% | ||||||||||||||||
December 31, 2013 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Range | |||||||||||||||||
Fair | Valuation | Unobservable | (Weighted | ||||||||||||||
Value | Technique(s) | Input(s) | Average) | ||||||||||||||
Impaired loans | |||||||||||||||||
Real estate mortgage: | |||||||||||||||||
1-4 family residential | 1,420 | sales comparison | adjustment for | 0%-99% | |||||||||||||
differences | -14% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Multi-family residential | 199 | sales comparison | adjustment for | 12%-32% | |||||||||||||
differences | -22% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Non-farm & non-residential | 36 | sales comparison | adjustment for | 0%-61% | |||||||||||||
differences | -31% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Agricultural | 275 | sales comparison | adjustment for | 5%-44% | |||||||||||||
differences | -20% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
Other real estate owned: | |||||||||||||||||
Residential | 1,361 | sales comparison | adjustment for | 0%-33% | |||||||||||||
differences | -4% | ||||||||||||||||
between the | |||||||||||||||||
comparable sales | |||||||||||||||||
income approach | capitalization rate | 8%-8% | |||||||||||||||
-8% | |||||||||||||||||
Loan Servicing Rights | 201 | discounted cash flow | constant prepayment | 7%-23% | |||||||||||||
rates | -10% | ||||||||||||||||
Schedule of carrying amounts and estimated fair values of financial instruments | ' | ||||||||||||||||
June 30, 2014: | |||||||||||||||||
(in thousands) | |||||||||||||||||
Carrying | |||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 15,039 | $ | 15,039 | $ | — | $ | — | $ | 15,039 | |||||||
Securities | 224,168 | 294 | 223,874 | — | 224,168 | ||||||||||||
Trading Assets | 5,242 | 5,242 | — | 5,242 | |||||||||||||
Mortgage loans held for sale | 495 | — | 500 | — | 500 | ||||||||||||
Loans, net | 490,520 | — | — | 490,183 | 490,183 | ||||||||||||
FHLB Stock | 5,981 | — | — | — | N/A | ||||||||||||
Interest receivable | 3,254 | — | 1,216 | 2,038 | 3,254 | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | 597,409 | $ | 415,247 | $ | 184,104 | $ | — | $ | 599,351 | |||||||
Securities sold under agreements to repurchase and other borrowings | 11,297 | — | 11,459 | — | 11,459 | ||||||||||||
Federal Funds Purchased | 4,649 | 4,649 | — | — | 4,649 | ||||||||||||
FHLB advances | 81,414 | — | 77,953 | — | 77,953 | ||||||||||||
Subordinated Debentures | 7,217 | — | — | 7,210 | 7,210 | ||||||||||||
Interest payable | 679 | — | 670 | 9 | 679 | ||||||||||||
December 31, 2013: | |||||||||||||||||
(in thousands) | |||||||||||||||||
Carrying | |||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | 23,160 | $ | 23,160 | $ | — | $ | — | $ | 23,160 | |||||||
Securities | 230,396 | 289 | 230,107 | — | 230,396 | ||||||||||||
Mortgage loans held for sale | 223 | — | 229 | — | 229 | ||||||||||||
Loans, net | 463,214 | — | — | 459,796 | 459,796 | ||||||||||||
FHLB Stock | 6,731 | — | — | — | N/A | ||||||||||||
Interest receivable | 3,618 | — | 1,315 | 2,303 | 3,618 | ||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | $ | 617,400 | $ | 428,239 | $ | 191,523 | $ | — | $ | 619,762 | |||||||
Securities sold under agreements to repurchase and other borrowings | 12,867 | — | 13,013 | — | 13,013 | ||||||||||||
FHLB advances | 57,847 | — | 52,220 | — | 52,220 | ||||||||||||
Subordinated Debentures | 7,217 | — | — | 7,217 | 7,217 | ||||||||||||
Interest Payable | 736 | 727 | 9 | 736 | |||||||||||||
CHANGES_IN_ACCUMULATED_OTHER_C1
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT | ' | |||||||
Schedule of changes in Accumulated Other Comprehensive Income (Loss) by Component | ' | |||||||
Changes in Accumulated Other Comprehensive Income by Component (1) (unaudited) | ||||||||
(in thousands) | ||||||||
Unrealized | ||||||||
Gains and Losses on | ||||||||
Available for Sale | ||||||||
Securities | ||||||||
For the Six Months Ending June 30 | ||||||||
2014 | 2013 | |||||||
Beginning Balance | $ | (5,126 | ) | $ | 4,283 | |||
Unrealized holding gains (losses) for the period, net of tax | 5,267 | (5,465 | ) | |||||
Reclassification adjustment for: | ||||||||
Securities gains realized in income, net | (433 | ) | (774 | ) | ||||
Income taxes | (147 | ) | (263 | ) | ||||
(286 | ) | (511 | ) | |||||
Net current period other comprehensive income | 4,981 | (5,976 | ) | |||||
Ending balance | $ | (145 | ) | $ | (1,693 | ) | ||
(1) All amounts are net of tax. | ||||||||
Unrealized | ||||||||
Gains and Losses on | ||||||||
Available for Sale | ||||||||
Securities | ||||||||
For the Three Months Ending June 30 | ||||||||
2014 | 2013 | |||||||
Beginning Balance | $ | (1,875 | ) | $ | 3,031 | |||
Unrealized holding gains (losses) for the period, net of tax | 1,892 | (4,404 | ) | |||||
Reclassification adjustment for: | ||||||||
Securities gains realized in income, net | (245 | ) | (485 | ) | ||||
Income taxes | (83 | ) | (165 | ) | ||||
(162 | ) | (320 | ) | |||||
Net current period other comprehensive income | 1,730 | (4,724 | ) | |||||
Ending balance | $ | (145 | ) | $ | (1,693 | ) | ||
(2) All amounts are net of tax. | ||||||||
Significant amounts reclassified out of each component of AOCI | ' | |||||||
June 30, 2014 | ||||||||
Details about | Amount | Affected Line Item | ||||||
Accumulated Other | Reclassified From | in the Statement | ||||||
Comprehensive | Accumulated Other | Where Net | ||||||
Income Components | Comprehensive Income | Income is Presented | ||||||
Unrealized gains and losses on available-for-sale securities | $ | (433 | ) | Securities gains, net | ||||
147 | Provision for income taxes | |||||||
(286 | ) | Net of tax | ||||||
June 30, 2013 | ||||||||
Details about | Amount | Affected Line Item | ||||||
Accumulated Other | Reclassified From | in the Statement | ||||||
Comprehensive | Accumulated Other | Where Net | ||||||
Income Components | Comprehensive Income | Income is Presented | ||||||
Unrealized gains and losses on available-for-sale securities | $ | (774 | ) | Securities gains, net | ||||
263 | Provision for income taxes | |||||||
(511 | ) | Net of tax | ||||||
June 30, 2014 | ||||||||
Details about | Amount | Affected Line Item | ||||||
Accumulated Other | Reclassified From | in the Statement | ||||||
Comprehensive | Accumulated Other | Where Net | ||||||
Income Components | Comprehensive Income | Income is Presented | ||||||
Unrealized gains and losses on available-for-sale securities | $ | (245 | ) | Securities gains, net | ||||
83 | Provision for income taxes | |||||||
(162 | ) | Net of tax | ||||||
June 30, 2013 | ||||||||
Details about | Amount | Affected Line Item | ||||||
Accumulated Other | Reclassified From | in the Statement | ||||||
Comprehensive | Accumulated Other | Where Net | ||||||
Income Components | Comprehensive Income | Income is Presented | ||||||
Unrealized gains and losses on available-for-sale securities | $ | (485 | ) | Securities gains, net | ||||
165 | Provision for income taxes | |||||||
(320 | ) | Net of tax | ||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (Termination of defined benefit plan, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Termination of defined benefit plan | ' | ' |
Loss Contingencies | ' | ' |
Accrued contingent liability | $1.60 | $1.60 |
SECURITIES_Details
SECURITIES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Securities Available for Sale | ' | ' |
Amortized Cost | $224,388 | $238,163 |
Gross Unrealized Gains | 3,252 | 1,728 |
Gross Unrealized Losses | -3,472 | -9,495 |
Fair Value | 224,168 | 230,396 |
U.S. government agencies | ' | ' |
Securities Available for Sale | ' | ' |
Amortized Cost | 69,062 | 73,930 |
Gross Unrealized Gains | 19 | 51 |
Gross Unrealized Losses | -1,809 | -4,695 |
Fair Value | 67,272 | 69,286 |
States and political subdivisions | ' | ' |
Securities Available for Sale | ' | ' |
Amortized Cost | 85,375 | 91,043 |
Gross Unrealized Gains | 2,894 | 1,614 |
Gross Unrealized Losses | -731 | -2,474 |
Fair Value | 87,538 | 90,183 |
Mortgage-backed - residential | ' | ' |
Securities Available for Sale | ' | ' |
Amortized Cost | 69,681 | 72,920 |
Gross Unrealized Gains | 315 | 44 |
Gross Unrealized Losses | -932 | -2,326 |
Fair Value | 69,064 | 70,638 |
Equity securities | ' | ' |
Securities Available for Sale | ' | ' |
Amortized Cost | 270 | 270 |
Gross Unrealized Gains | 24 | 19 |
Fair Value | $294 | $289 |
SECURITIES_Details_2
SECURITIES (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Amortized Cost | ' | ' | ' | ' | ' |
Due in one year or less | $467,000 | ' | $467,000 | ' | ' |
Due after one year through five years | 8,888,000 | ' | 8,888,000 | ' | ' |
Due after five years through ten years | 80,302,000 | ' | 80,302,000 | ' | ' |
Due after ten years | 64,780,000 | ' | 64,780,000 | ' | ' |
Securities due at a single maturity date | 154,437,000 | ' | 154,437,000 | ' | ' |
Total | 224,388,000 | ' | 224,388,000 | ' | 238,163,000 |
Fair Value | ' | ' | ' | ' | ' |
Due in one year or less | 469,000 | ' | 469,000 | ' | ' |
Due after one year through five years | 8,897,000 | ' | 8,897,000 | ' | ' |
Due after five years through ten years | 79,607,000 | ' | 79,607,000 | ' | ' |
Due after ten years | 65,837,000 | ' | 65,837,000 | ' | ' |
Securities due at a single maturity date | 154,810,000 | ' | 154,810,000 | ' | ' |
Fair Value | 224,168,000 | ' | 224,168,000 | ' | 230,396,000 |
Proceeds from sales of securities | 23,500,000 | 16,700,000 | 40,000,000 | 27,200,000 | ' |
Gross gains realized on sales of securities | 477,000 | 485,000 | 785,000 | 774,000 | ' |
Gross losses realized on sales of securities | 232,000 | 0 | 352,000 | 0 | ' |
Tax provision related to realized gains | 83,000 | 165,000 | 147,000 | 263,000 | ' |
Mortgage-backed - residential | ' | ' | ' | ' | ' |
Amortized Cost | ' | ' | ' | ' | ' |
Total | 69,681,000 | ' | 69,681,000 | ' | 72,920,000 |
Fair Value | ' | ' | ' | ' | ' |
Fair Value | 69,064,000 | ' | 69,064,000 | ' | 70,638,000 |
Equity | ' | ' | ' | ' | ' |
Amortized Cost | ' | ' | ' | ' | ' |
Total | 270,000 | ' | 270,000 | ' | 270,000 |
Fair Value | ' | ' | ' | ' | ' |
Fair Value | $294,000 | ' | $294,000 | ' | $289,000 |
SECURITIES_Details_3
SECURITIES (Details 3) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Securities with unrealized losses | ' | ' |
Less than 12 Months, Fair Value | $27,892 | $151,618 |
Less than 12 Months, Unrealized Loss | -375 | -8,244 |
12 Months or More, Fair Value | 93,419 | 10,996 |
12 Months or More, Unrealized Loss | -3,097 | -1,251 |
Total, Fair Value | 121,311 | 162,614 |
Total, Unrealized Loss | -3,472 | -9,495 |
Trading Assets | ' | ' |
Trading Assets | 5,242 | ' |
U.S. Government agencies | ' | ' |
Securities with unrealized losses | ' | ' |
Less than 12 Months, Fair Value | 12,771 | 57,203 |
Less than 12 Months, Unrealized Loss | -142 | -3,812 |
12 Months or More, Fair Value | 53,774 | 8,117 |
12 Months or More, Unrealized Loss | -1,667 | -883 |
Total, Fair Value | 66,545 | 65,320 |
Total, Unrealized Loss | -1,809 | -4,695 |
States and municipals | ' | ' |
Securities with unrealized losses | ' | ' |
Less than 12 Months, Fair Value | 4,426 | 32,289 |
Less than 12 Months, Unrealized Loss | -66 | -2,106 |
12 Months or More, Fair Value | 13,892 | 2,879 |
12 Months or More, Unrealized Loss | -665 | -368 |
Total, Fair Value | 18,318 | 35,168 |
Total, Unrealized Loss | -731 | -2,474 |
Mortgage-backed - residential | ' | ' |
Securities with unrealized losses | ' | ' |
Less than 12 Months, Fair Value | 10,695 | 62,126 |
Less than 12 Months, Unrealized Loss | -167 | -2,326 |
12 Months or More, Fair Value | 25,753 | ' |
12 Months or More, Unrealized Loss | -765 | ' |
Total, Fair Value | 36,448 | 62,126 |
Total, Unrealized Loss | ($932) | ($2,326) |
LOANS_Details
LOANS (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loans | ' | ' |
Loans | $496,134 | $468,655 |
Commercial | ' | ' |
Loans | ' | ' |
Loans | 33,727 | 34,654 |
Real estate construction | ' | ' |
Loans | ' | ' |
Loans | 13,393 | 11,177 |
1-4 family residential | ' | ' |
Loans | ' | ' |
Loans | 208,620 | 194,388 |
Multi-family residential | ' | ' |
Loans | ' | ' |
Loans | 18,805 | 16,420 |
Non-farm & non-residential | ' | ' |
Loans | ' | ' |
Loans | 131,795 | 126,791 |
Agricultural | ' | ' |
Loans | ' | ' |
Loans | 72,605 | 68,002 |
Consumer | ' | ' |
Loans | ' | ' |
Loans | 16,947 | 17,065 |
Other | ' | ' |
Loans | ' | ' |
Loans | $242 | $158 |
LOANS_Details_2
LOANS (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Activity in allowance for loan losses | ' | ' | ' | ' |
Beginning Balance | $5,616 | $5,623 | $5,441 | $6,047 |
Charge-offs | 206 | 458 | 643 | 1,538 |
Recoveries | 104 | 183 | 616 | 389 |
Provision | 100 | 150 | 200 | 600 |
Ending Balance | 5,614 | 5,498 | 5,614 | 5,498 |
Commercial | ' | ' | ' | ' |
Activity in allowance for loan losses | ' | ' | ' | ' |
Beginning Balance | 208 | 135 | 230 | 150 |
Charge-offs | ' | 5 | 200 | 11 |
Recoveries | ' | ' | ' | 28 |
Provision | 23 | 21 | 201 | -16 |
Ending Balance | 231 | 151 | 231 | 151 |
Real estate construction | ' | ' | ' | ' |
Activity in allowance for loan losses | ' | ' | ' | ' |
Beginning Balance | 329 | 497 | 358 | 918 |
Charge-offs | ' | ' | ' | 578 |
Recoveries | 4 | 16 | 8 | 21 |
Provision | 26 | -140 | -7 | 12 |
Ending Balance | 359 | 373 | 359 | 373 |
1-4 family residential | ' | ' | ' | ' |
Activity in allowance for loan losses | ' | ' | ' | ' |
Beginning Balance | 2,111 | 1,974 | 2,169 | 1,989 |
Charge-offs | 25 | 16 | 88 | 141 |
Recoveries | 4 | 30 | 16 | 56 |
Provision | 234 | -4 | 227 | 80 |
Ending Balance | 2,324 | 1,984 | 2,324 | 1,984 |
Multi-family residential | ' | ' | ' | ' |
Activity in allowance for loan losses | ' | ' | ' | ' |
Beginning Balance | 401 | 493 | 427 | 414 |
Charge-offs | ' | 161 | ' | 161 |
Recoveries | ' | 39 | ' | 39 |
Provision | -74 | 110 | -100 | 189 |
Ending Balance | 327 | 481 | 327 | 481 |
Non-farm & non-residential | ' | ' | ' | ' |
Activity in allowance for loan losses | ' | ' | ' | ' |
Beginning Balance | 930 | 611 | 564 | 628 |
Recoveries | ' | 10 | 367 | 18 |
Provision | -196 | 56 | -197 | 31 |
Ending Balance | 734 | 677 | 734 | 677 |
Agricultural | ' | ' | ' | ' |
Activity in allowance for loan losses | ' | ' | ' | ' |
Beginning Balance | 553 | 747 | 578 | 845 |
Charge-offs | ' | ' | ' | 86 |
Recoveries | 1 | 1 | 25 | 3 |
Provision | -8 | -87 | -57 | -101 |
Ending Balance | 546 | 661 | 546 | 661 |
Consumer | ' | ' | ' | ' |
Activity in allowance for loan losses | ' | ' | ' | ' |
Beginning Balance | 550 | 511 | 548 | 517 |
Charge-offs | 76 | 104 | 153 | 252 |
Recoveries | 23 | 7 | 41 | 18 |
Provision | 46 | 134 | 107 | 265 |
Ending Balance | 543 | 548 | 543 | 548 |
Other | ' | ' | ' | ' |
Activity in allowance for loan losses | ' | ' | ' | ' |
Beginning Balance | 11 | 99 | 51 | 54 |
Charge-offs | 105 | 172 | 202 | 309 |
Recoveries | 72 | 80 | 159 | 206 |
Provision | 55 | 85 | 25 | 141 |
Ending Balance | 33 | 92 | 33 | 92 |
Unallocated | ' | ' | ' | ' |
Activity in allowance for loan losses | ' | ' | ' | ' |
Beginning Balance | 523 | 556 | 516 | 532 |
Provision | -6 | -25 | 1 | -1 |
Ending Balance | $517 | $531 | $517 | $531 |
LOANS_Details_3
LOANS (Details 3) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
Loans | ' | ' | ' | ' | ' | ' |
Accrued interest receivable | $2,000,000 | ' | $2,300,000 | ' | ' | ' |
Allowance for Loan Losses: | ' | ' | ' | ' | ' | ' |
Individually Evaluated for Impairment | 818,000 | ' | 712,000 | ' | ' | ' |
Collectively Evaluated for Impairment | 4,796,000 | ' | 4,729,000 | ' | ' | ' |
Total | 5,614,000 | 5,616,000 | 5,441,000 | 5,498,000 | 5,623,000 | 6,047,000 |
Loans: | ' | ' | ' | ' | ' | ' |
Individually Evaluated for Impairment | 17,012,000 | ' | 13,536,000 | ' | ' | ' |
Collectively Evaluated for Impairment | 479,122,000 | ' | 455,119,000 | ' | ' | ' |
Total | 496,134,000 | ' | 468,655,000 | ' | ' | ' |
Commercial | ' | ' | ' | ' | ' | ' |
Allowance for Loan Losses: | ' | ' | ' | ' | ' | ' |
Collectively Evaluated for Impairment | 231,000 | ' | 230,000 | ' | ' | ' |
Total | 231,000 | 208,000 | 230,000 | 151,000 | 135,000 | 150,000 |
Loans: | ' | ' | ' | ' | ' | ' |
Collectively Evaluated for Impairment | 33,727,000 | ' | 34,654,000 | ' | ' | ' |
Total | 33,727,000 | ' | 34,654,000 | ' | ' | ' |
Real estate construction | ' | ' | ' | ' | ' | ' |
Allowance for Loan Losses: | ' | ' | ' | ' | ' | ' |
Collectively Evaluated for Impairment | 359,000 | ' | 358,000 | ' | ' | ' |
Total | 359,000 | 329,000 | 358,000 | 373,000 | 497,000 | 918,000 |
Loans: | ' | ' | ' | ' | ' | ' |
Collectively Evaluated for Impairment | 13,393,000 | ' | 11,177,000 | ' | ' | ' |
Total | 13,393,000 | ' | 11,177,000 | ' | ' | ' |
1-4 family residential | ' | ' | ' | ' | ' | ' |
Allowance for Loan Losses: | ' | ' | ' | ' | ' | ' |
Individually Evaluated for Impairment | 326,000 | ' | 228,000 | ' | ' | ' |
Collectively Evaluated for Impairment | 1,998,000 | ' | 1,941,000 | ' | ' | ' |
Total | 2,324,000 | 2,111,000 | 2,169,000 | 1,984,000 | 1,974,000 | 1,989,000 |
Loans: | ' | ' | ' | ' | ' | ' |
Individually Evaluated for Impairment | 3,196,000 | ' | 2,873,000 | ' | ' | ' |
Collectively Evaluated for Impairment | 205,424,000 | ' | 191,515,000 | ' | ' | ' |
Total | 208,620,000 | ' | 194,388,000 | ' | ' | ' |
Multi-family residential | ' | ' | ' | ' | ' | ' |
Allowance for Loan Losses: | ' | ' | ' | ' | ' | ' |
Individually Evaluated for Impairment | 50,000 | ' | 76,000 | ' | ' | ' |
Collectively Evaluated for Impairment | 277,000 | ' | 351,000 | ' | ' | ' |
Total | 327,000 | 401,000 | 427,000 | 481,000 | 493,000 | 414,000 |
Loans: | ' | ' | ' | ' | ' | ' |
Individually Evaluated for Impairment | 345,000 | ' | 274,000 | ' | ' | ' |
Collectively Evaluated for Impairment | 18,460,000 | ' | 16,146,000 | ' | ' | ' |
Total | 18,805,000 | ' | 16,420,000 | ' | ' | ' |
Non-farm & non-residential | ' | ' | ' | ' | ' | ' |
Allowance for Loan Losses: | ' | ' | ' | ' | ' | ' |
Individually Evaluated for Impairment | 182,000 | ' | 110,000 | ' | ' | ' |
Collectively Evaluated for Impairment | 552,000 | ' | 454,000 | ' | ' | ' |
Total | 734,000 | 930,000 | 564,000 | 677,000 | 611,000 | 628,000 |
Loans: | ' | ' | ' | ' | ' | ' |
Individually Evaluated for Impairment | 3,937,000 | ' | 2,716,000 | ' | ' | ' |
Collectively Evaluated for Impairment | 127,858,000 | ' | 124,075,000 | ' | ' | ' |
Total | 131,795,000 | ' | 126,791,000 | ' | ' | ' |
Agricultural | ' | ' | ' | ' | ' | ' |
Allowance for Loan Losses: | ' | ' | ' | ' | ' | ' |
Individually Evaluated for Impairment | 260,000 | ' | 298,000 | ' | ' | ' |
Collectively Evaluated for Impairment | 286,000 | ' | 280,000 | ' | ' | ' |
Total | 546,000 | 553,000 | 578,000 | 661,000 | 747,000 | 845,000 |
Loans: | ' | ' | ' | ' | ' | ' |
Individually Evaluated for Impairment | 9,534,000 | ' | 7,673,000 | ' | ' | ' |
Collectively Evaluated for Impairment | 63,071,000 | ' | 60,329,000 | ' | ' | ' |
Total | 72,605,000 | ' | 68,002,000 | ' | ' | ' |
Consumer | ' | ' | ' | ' | ' | ' |
Allowance for Loan Losses: | ' | ' | ' | ' | ' | ' |
Collectively Evaluated for Impairment | 543,000 | ' | 548,000 | ' | ' | ' |
Total | 543,000 | 550,000 | 548,000 | 548,000 | 511,000 | 517,000 |
Loans: | ' | ' | ' | ' | ' | ' |
Collectively Evaluated for Impairment | 16,947,000 | ' | 17,065,000 | ' | ' | ' |
Total | 16,947,000 | ' | 17,065,000 | ' | ' | ' |
Other | ' | ' | ' | ' | ' | ' |
Allowance for Loan Losses: | ' | ' | ' | ' | ' | ' |
Collectively Evaluated for Impairment | 33,000 | ' | 51,000 | ' | ' | ' |
Total | 33,000 | 11,000 | 51,000 | 92,000 | 99,000 | 54,000 |
Loans: | ' | ' | ' | ' | ' | ' |
Collectively Evaluated for Impairment | 242,000 | ' | 158,000 | ' | ' | ' |
Total | 242,000 | ' | 158,000 | ' | ' | ' |
Unallocated | ' | ' | ' | ' | ' | ' |
Allowance for Loan Losses: | ' | ' | ' | ' | ' | ' |
Collectively Evaluated for Impairment | 517,000 | ' | 516,000 | ' | ' | ' |
Total | $517,000 | $523,000 | $516,000 | $531,000 | $556,000 | $532,000 |
LOANS_Details_4
LOANS (Details 4) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
Total | $17,012 | ' | $17,012 | ' | $14,501 |
Recorded Investment | ' | ' | ' | ' | ' |
Total | 17,012 | ' | 17,012 | ' | 13,536 |
Allowance for Loan Losses Allocated | 818 | ' | 818 | ' | 712 |
Average Recorded Investment | ' | ' | ' | ' | ' |
Total | 14,393 | 13,804 | 14,344 | 14,488 | 14,691 |
Interest Income Recognized | ' | ' | ' | ' | ' |
Total | 183 | 60 | 221 | 191 | 697 |
Cash Basis Interest Recognized | ' | ' | ' | ' | ' |
Total | 183 | 60 | 221 | 191 | 697 |
Real estate construction | ' | ' | ' | ' | ' |
Average Recorded Investment | ' | ' | ' | ' | ' |
With an allowance recorded | ' | ' | ' | ' | 607 |
1-4 family residential | ' | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
With no related allowance recorded | 1,302 | ' | 1,302 | ' | 824 |
With an allowance recorded | 1,894 | ' | 1,894 | ' | 2,080 |
Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 1,302 | ' | 1,302 | ' | 793 |
With an allowance recorded | 1,894 | ' | 1,894 | ' | 2,080 |
Allowance for Loan Losses Allocated | 326 | ' | 326 | ' | 228 |
Average Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 1,562 | 1,035 | 1,002 | 1,253 | 1,217 |
With an allowance recorded | 1,377 | 1,016 | 1,991 | 874 | 1,349 |
Interest Income Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | ' | 2 | ' | 21 | 28 |
With an allowance recorded | 38 | 7 | 44 | 21 | 96 |
Cash Basis Interest Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | ' | 2 | ' | 21 | 28 |
With an allowance recorded | 38 | 7 | 44 | 21 | 96 |
Multi-family residential | ' | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
With an allowance recorded | 345 | ' | 345 | ' | 274 |
Recorded Investment | ' | ' | ' | ' | ' |
With an allowance recorded | 345 | ' | 345 | ' | 274 |
Allowance for Loan Losses Allocated | 50 | ' | 50 | ' | 76 |
Average Recorded Investment | ' | ' | ' | ' | ' |
With an allowance recorded | 310 | 669 | 323 | 511 | 443 |
Interest Income Recognized | ' | ' | ' | ' | ' |
With an allowance recorded | 1 | 1 | 5 | 3 | 3 |
Cash Basis Interest Recognized | ' | ' | ' | ' | ' |
With an allowance recorded | 1 | 1 | 5 | 3 | 3 |
Non-farm & non-residential | ' | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
With no related allowance recorded | ' | ' | ' | ' | 1,650 |
With an allowance recorded | 3,937 | ' | 3,937 | ' | 1,913 |
Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | ' | ' | ' | ' | 803 |
With an allowance recorded | 3,937 | ' | 3,937 | ' | 1,913 |
Allowance for Loan Losses Allocated | 182 | ' | 182 | ' | 110 |
Average Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | ' | 1,065 | 267 | 1,625 | 1,471 |
With an allowance recorded | 3,553 | 2,421 | 3,043 | 2,641 | 1,938 |
Interest Income Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | ' | 20 | ' | 40 | 81 |
With an allowance recorded | 48 | 20 | 73 | 40 | 79 |
Cash Basis Interest Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | ' | 20 | ' | 40 | 81 |
With an allowance recorded | 48 | 20 | 73 | 40 | 79 |
Agricultural | ' | ' | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' | ' | ' |
With no related allowance recorded | 4,780 | ' | 4,780 | ' | 2,912 |
With an allowance recorded | 4,754 | ' | 4,754 | ' | 4,847 |
Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 4,780 | ' | 4,780 | ' | 2,826 |
With an allowance recorded | 4,754 | ' | 4,754 | ' | 4,847 |
Allowance for Loan Losses Allocated | 260 | ' | 260 | ' | 298 |
Average Recorded Investment | ' | ' | ' | ' | ' |
With no related allowance recorded | 2,836 | 2,854 | 2,684 | 2,873 | 2,802 |
With an allowance recorded | 4,755 | 4,744 | 5,034 | 4,711 | 4,864 |
Interest Income Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | 77 | 3 | 80 | 9 | 123 |
With an allowance recorded | 19 | 7 | 19 | 57 | 287 |
Cash Basis Interest Recognized | ' | ' | ' | ' | ' |
With no related allowance recorded | 77 | 3 | 80 | 9 | 123 |
With an allowance recorded | $19 | $7 | $19 | $57 | $287 |
LOANS_Details_5
LOANS (Details 5) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Loans | ' | ' | ' | ' | ' |
Nonaccrual | $3,938 | ' | $3,938 | ' | $2,974 |
Loans Past Due Over 90 Days Still Accruing | 266 | ' | 266 | ' | 554 |
Accruing Troubled Debt Restructurings | 6,870 | ' | 6,870 | ' | 6,901 |
Percentage of nonaccrual loans secured by real estate | 92.40% | ' | 92.40% | ' | ' |
Minimum period for which principal or interest is in default for loans to be considered as nonaccrual | ' | ' | '90 days | ' | ' |
Maximum period past due for loans to be considered as impaired | ' | ' | '90 days | ' | ' |
Impaired loans transferred to other real estate owned | ' | ' | 419 | 248 | ' |
Amount recorded in charge offs which contributed to a reduction in nonaccrual loan balances | 206 | 458 | 643 | 1,538 | ' |
Commercial | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' |
Nonaccrual | 299 | ' | 299 | ' | ' |
Amount recorded in charge offs which contributed to a reduction in nonaccrual loan balances | ' | 5 | 200 | 11 | ' |
Real estate construction | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' |
Amount recorded in charge offs which contributed to a reduction in nonaccrual loan balances | ' | ' | ' | 578 | ' |
Prior loan charge offs recovered | ' | ' | 616 | ' | ' |
1-4 family residential | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' |
Nonaccrual | 2,350 | ' | 2,350 | ' | 1,171 |
Loans Past Due Over 90 Days Still Accruing | 266 | ' | 266 | ' | 314 |
Accruing Troubled Debt Restructurings | 487 | ' | 487 | ' | 493 |
Amount recorded in charge offs which contributed to a reduction in nonaccrual loan balances | 25 | 16 | 88 | 141 | ' |
Multi-family residential | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' |
Nonaccrual | 85 | ' | 85 | ' | 275 |
Amount recorded in charge offs which contributed to a reduction in nonaccrual loan balances | ' | 161 | ' | 161 | ' |
Non-farm & non-residential | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' |
Nonaccrual | 988 | ' | 988 | ' | 803 |
Accruing Troubled Debt Restructurings | 1,853 | ' | 1,853 | ' | 1,878 |
Agricultural | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' |
Nonaccrual | 216 | ' | 216 | ' | 717 |
Loans Past Due Over 90 Days Still Accruing | ' | ' | ' | ' | 232 |
Accruing Troubled Debt Restructurings | 4,530 | ' | 4,530 | ' | 4,530 |
Amount recorded in charge offs which contributed to a reduction in nonaccrual loan balances | ' | ' | ' | 86 | ' |
Consumer | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' |
Nonaccrual | ' | ' | ' | ' | 8 |
Loans Past Due Over 90 Days Still Accruing | ' | ' | ' | ' | 8 |
Amount recorded in charge offs which contributed to a reduction in nonaccrual loan balances | $76 | $104 | $153 | $252 | ' |
LOANS_Details_6
LOANS (Details 6) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Aging of recorded investment in past due and non-accrual loans | ' | ' |
30-59 Days Past Due | $3,107 | $2,965 |
60-89 Days Past Due | 737 | 1,312 |
Greater than 90 Days Past Due | 266 | 554 |
Non-accrual | 3,938 | 2,974 |
Total Past Due and Non-accrual | 8,048 | 7,805 |
Loans Not Past Due | 488,086 | 460,850 |
Commercial | ' | ' |
Aging of recorded investment in past due and non-accrual loans | ' | ' |
30-59 Days Past Due | 79 | 49 |
Non-accrual | 299 | ' |
Total Past Due and Non-accrual | 378 | 49 |
Loans Not Past Due | 33,349 | 34,605 |
Real estate construction | ' | ' |
Aging of recorded investment in past due and non-accrual loans | ' | ' |
30-59 Days Past Due | ' | 175 |
Total Past Due and Non-accrual | ' | 175 |
Loans Not Past Due | 13,393 | 11,002 |
1-4 family residential | ' | ' |
Aging of recorded investment in past due and non-accrual loans | ' | ' |
30-59 Days Past Due | 1,788 | 1,981 |
60-89 Days Past Due | 433 | 1,285 |
Greater than 90 Days Past Due | 266 | 314 |
Non-accrual | 2,350 | 1,171 |
Total Past Due and Non-accrual | 4,837 | 4,751 |
Loans Not Past Due | 203,783 | 189,637 |
Multi-family residential | ' | ' |
Aging of recorded investment in past due and non-accrual loans | ' | ' |
60-89 Days Past Due | 260 | ' |
Non-accrual | 85 | 275 |
Total Past Due and Non-accrual | 345 | 275 |
Loans Not Past Due | 18,460 | 16,145 |
Non-farm & non-residential | ' | ' |
Aging of recorded investment in past due and non-accrual loans | ' | ' |
30-59 Days Past Due | 777 | 503 |
Non-accrual | 988 | 803 |
Total Past Due and Non-accrual | 1,765 | 1,306 |
Loans Not Past Due | 130,030 | 125,485 |
Agricultural | ' | ' |
Aging of recorded investment in past due and non-accrual loans | ' | ' |
30-59 Days Past Due | 312 | 155 |
Greater than 90 Days Past Due | ' | 232 |
Non-accrual | 216 | 717 |
Total Past Due and Non-accrual | 528 | 1,104 |
Loans Not Past Due | 72,077 | 66,898 |
Consumer | ' | ' |
Aging of recorded investment in past due and non-accrual loans | ' | ' |
30-59 Days Past Due | 151 | 102 |
60-89 Days Past Due | 44 | 27 |
Greater than 90 Days Past Due | ' | 8 |
Non-accrual | ' | 8 |
Total Past Due and Non-accrual | 195 | 145 |
Loans Not Past Due | 16,752 | 16,920 |
Other | ' | ' |
Aging of recorded investment in past due and non-accrual loans | ' | ' |
Loans Not Past Due | $242 | $158 |
LOANS_Details_7
LOANS (Details 7) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
item | item | ||
LOANS | ' | ' | ' |
Reserves to customers whose loan terms have been modified in troubled debt restructurings | $398 | ' | $428 |
Trouble debt restructuring defaulted on payment | $0 | $0 | ' |
Number of loans modified | 0 | 0 | ' |
LOANS_Details_8
LOANS (Details 8) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Credit Quality Indicators | ' | ' |
Loans | $496,134 | $468,655 |
Pass | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 435,512 | 410,284 |
Special Mention | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 31,698 | 27,653 |
Substandard | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 11,714 | 13,495 |
Doubtful | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 21 | ' |
Commercial | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 33,727 | 34,654 |
Commercial | Pass | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 31,932 | 32,771 |
Commercial | Special Mention | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 1,241 | 1,587 |
Commercial | Substandard | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 554 | 296 |
Real estate construction | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 13,393 | 11,177 |
Real estate construction | Pass | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 11,934 | 9,660 |
Real estate construction | Special Mention | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 1,459 | 1,517 |
1-4 family residential | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 208,620 | 194,388 |
1-4 family residential | Pass | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 190,893 | 176,553 |
1-4 family residential | Special Mention | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 10,040 | 10,346 |
1-4 family residential | Substandard | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 7,666 | 7,489 |
1-4 family residential | Doubtful | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 21 | ' |
Multi-family residential | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 18,805 | 16,420 |
Multi-family residential | Pass | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 16,738 | 14,392 |
Multi-family residential | Special Mention | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 1,555 | 1,579 |
Multi-family residential | Substandard | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 512 | 449 |
Non-farm & non-residential | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 131,795 | 126,791 |
Non-farm & non-residential | Pass | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 125,306 | 120,195 |
Non-farm & non-residential | Special Mention | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 5,050 | 5,327 |
Non-farm & non-residential | Substandard | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 1,439 | 1,269 |
Agricultural | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 72,605 | 68,002 |
Agricultural | Pass | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 58,709 | 56,713 |
Agricultural | Special Mention | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 12,353 | 7,297 |
Agricultural | Substandard | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 1,543 | 3,992 |
Consumer | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | 16,947 | 17,065 |
Consumer | Non-performing | ' | ' |
Credit Quality Indicators | ' | ' |
Loans | $0 | $16 |
Minimum period past due for loans to be considered as non-performing | '90 days | ' |
REAL_ESTATE_OWNED_Details
REAL ESTATE OWNED (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Activity in real estate owned | ' | ' | ' | ' |
Beginning of year | ' | ' | $3,379 | $4,168 |
Additions | ' | ' | 419 | 335 |
Sales | ' | ' | -1,540 | -924 |
(Additions) subtractions to valuation allowance, net | ' | ' | -10 | 10 |
Recovery from sale in valuation allowance | ' | ' | 58 | 199 |
End of period | 2,306 | 3,788 | 2,306 | 3,788 |
Activity in the valuation allowance | ' | ' | ' | ' |
Beginning of year | ' | ' | 1,524 | 1,668 |
Additions (subtractions) to valuation allowance, net | ' | ' | 10 | -10 |
Recovery from sale | ' | ' | -58 | -199 |
End of period | 1,476 | 1,459 | 1,476 | 1,459 |
Expenses related to foreclosed assets | ' | ' | ' | ' |
Net loss (gain) on sales | ' | ' | -70 | -30 |
Additions (subtractions) to valuation allowance, net | ' | ' | 10 | -10 |
Operating expenses (receipts), net of rental income | ' | ' | 13 | 45 |
Repossession expenses, net | 25 | -32 | 23 | 35 |
End of period | ' | ' | ($47) | $5 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Basic Earnings Per Share | ' | ' | ' | ' |
Net Income | $1,904 | $1,785 | $3,675 | $3,494 |
Weighted average common shares outstanding | 2,708 | 2,704 | 2,708 | 2,705 |
Basic earnings per share (in dollars per share) | $0.70 | $0.66 | $1.36 | $1.29 |
Diluted Earnings Per Share | ' | ' | ' | ' |
Net income | $1,904 | $1,785 | $3,675 | $3,494 |
Weighted average common shares outstanding | 2,708 | 2,704 | 2,708 | 2,705 |
Add dilutive effects of assumed vesting of stock grants | ' | 4 | ' | 4 |
Weighted average common and dilutive potential common shares outstanding | 2,708 | 2,708 | 2,708 | 2,709 |
Diluted earnings per share (in dollars per share) | $0.70 | $0.66 | $1.36 | $1.29 |
EARNINGS_PER_SHARE_Details_2
EARNINGS PER SHARE (Details 2) (Stock options) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Stock options | ' | ' | ' | ' |
Antidilutive securities | ' | ' | ' | ' |
Antidilutive shares excluded from computation of diluted earnings per share | 12,725 | 19,500 | 12,725 | 19,500 |
STOCK_COMPENSATION_Details
STOCK COMPENSATION (Details) | 6 Months Ended |
Jun. 30, 2014 | |
item | |
STOCK COMPENSATION | ' |
Number of share based compensation plans | 4 |
STOCK_COMPENSATION_Details_2
STOCK COMPENSATION (Details 2) (Stock Options) | 6 Months Ended |
Jun. 30, 2014 | |
Stock Option Plans | ' |
Stock Based Compensation | ' |
Life of awards | '10 years |
1999 Plan | ' |
Stock Based Compensation | ' |
Vesting period | '5 years |
Number of shares authorized for issuance | 100,000 |
1993 Non-Employee Directors Stock Ownership Incentive Plan | ' |
Stock Based Compensation | ' |
Number of shares authorized for issuance | 20,000 |
STOCK_COMPENSATION_Details_3
STOCK COMPENSATION (Details 3) (Stock Option Plans, USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Stock Option Plans | ' |
Shares | ' |
Outstanding, beginning of year (in shares) | 19,100 |
Forfeited or expired (in shares) | -6,375 |
Outstanding, end of period (in shares) | 12,725 |
Vested and expected to vest (in shares) | 12,725 |
Exercisable, end of period (in shares) | 12,725 |
Weighted Average Exercise Price | ' |
Outstanding, beginning of year (in dollars per share) | $31.50 |
Forfeited or expired (in dollars per share) | $33.56 |
Outstanding, end of period (in dollars per share) | $30.46 |
Vested and expected to vest (in dollars per share) | $30.46 |
Exercisable, end of period (in dollars per share) | $30.46 |
Weighted Average Remaining Contractual Term | ' |
Outstanding, end of period | '10 years 10 months 24 days |
Vested and expected to vest | '10 years 10 months 24 days |
Exercisable, end of period | '10 years 10 months 24 days |
Additional disclosures | ' |
Unrecognized compensation cost related to nonvested stock options granted | $0 |
Additional options to be granted under the plans (in shares) | 0 |
STOCK_COMPENSATION_Details_4
STOCK COMPENSATION (Details 4) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
2005 Restricted Stock Grant Plan | Restricted stock | ' | ' |
Stock Based Compensation | ' | ' |
Number of shares authorized for issuance | 50,000 | ' |
Shares available for issuance | 4,995 | ' |
Shares | ' | ' |
Nonvested at the beginning of the period (in shares) | 15,565 | ' |
Granted (in shares) | 7,475 | 6,065 |
Forfeited (in shares) | 0 | 0 |
Vested (in shares) | -4,756 | ' |
Nonvested at the end of the period (in shares) | 18,284 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' |
Nonvested shares, balance at the beginning of the period (in dollars) | $280,016 | ' |
Granted (in dollars) | 181,194 | ' |
Vested (in dollars) | -84,518 | ' |
Nonvested shares, balance at the end of the period (in dollars) | 376,692 | ' |
Fair Value Per Share | ' | ' |
Nonvested shares, balance at the beginning of the period (in dollars per share) | $17.99 | ' |
Granted (in dollars per share) | $24.24 | ' |
Vested (in dollars per share) | $17.77 | ' |
Nonvested shares, balance at the end of the period (in dollars per share) | $20.60 | ' |
Additional disclosures | ' | ' |
Total unrecognized compensation cost related to nonvested shares granted | 327,197 | ' |
Period over which cost is expected to be recognized | '5 years | ' |
2009 Stock Award Plan | ' | ' |
Stock Based Compensation | ' | ' |
Number of shares authorized for issuance | 150,000 | 900 |
Shares available for issuance | 149,100 | ' |
2009 Stock Award Plan | Restricted stock | ' | ' |
Shares | ' | ' |
Nonvested at the beginning of the period (in shares) | 900 | ' |
Granted (in shares) | 0 | 900 |
Vested (in shares) | -180 | ' |
Nonvested at the end of the period (in shares) | 720 | ' |
Weighted-Average Grant-Date Fair Value | ' | ' |
Nonvested shares, balance at the beginning of the period (in dollars) | 20,880 | ' |
Vested (in dollars) | -4,176 | ' |
Nonvested shares, balance at the end of the period (in dollars) | 16,704 | ' |
Fair Value Per Share | ' | ' |
Nonvested shares, balance at the beginning of the period (in dollars per share) | $23.20 | ' |
Vested (in dollars per share) | $23.20 | ' |
Nonvested shares, balance at the end of the period (in dollars per share) | $23.20 | ' |
Additional disclosures | ' | ' |
Total unrecognized compensation cost related to nonvested shares granted | $15,312 | ' |
Period over which cost is expected to be recognized | '5 years | ' |
OTHER_BORROWINGS_Details
OTHER BORROWINGS (Details) (Revolving promissory note, USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Revolving promissory note | ' |
OTHER BORROWINGS | ' |
Maximum borrowing capacity | $5 |
Outstanding balance | $0 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | $224,168 | $230,396 |
Trading Assets | 5,242 | ' |
Transfers from Level 1 to Level 2 | 0 | 0 |
Transfers from Level 2 to Level 1 | 0 | 0 |
Carrying Value | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 224,168 | 230,396 |
Trading Assets | 5,242 | ' |
Fair Value | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | ' | 230,396 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 294 | 289 |
Trading Assets | 5,242 | ' |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 223,874 | 230,107 |
Recurring | Fair Value | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 229,410 | 230,396 |
Trading Assets | 5,242 | ' |
Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 5,536 | 289 |
Trading Assets | 5,242 | ' |
Recurring | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 223,874 | 230,107 |
U.S. government agencies | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 67,272 | 69,286 |
U.S. government agencies | Recurring | Fair Value | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 67,272 | 69,286 |
U.S. government agencies | Recurring | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 67,272 | 69,286 |
States and municipals | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 87,538 | 90,183 |
States and municipals | Recurring | Fair Value | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 87,538 | 90,183 |
States and municipals | Recurring | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 87,538 | 90,183 |
Mortgage-backed - residential | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 69,064 | 70,638 |
Mortgage-backed - residential | Recurring | Fair Value | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 69,064 | 70,638 |
Mortgage-backed - residential | Recurring | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 69,064 | 70,638 |
Equity securities | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 294 | 289 |
Equity securities | Recurring | Fair Value | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | 294 | 289 |
Equity securities | Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | ' | ' |
Fair value on instruments on recurring basis | ' | ' |
Available for sale investment securities | $294 | $289 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | 1-4 family residential | 1-4 family residential | 1-4 family residential | 1-4 family residential | Multi-family residential | Multi-family residential | Multi-family residential | Multi-family residential | Non-farm & non-residential | Non-farm & non-residential | Non-farm & non-residential | Non-farm & non-residential | Agricultural | Agricultural | Agricultural | Agricultural | Residential | Residential | Residential | Residential | ||||
item | Carrying Value | Carrying Value | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | Non-recurring | |||||||||
Carrying Value | Carrying Value | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Carrying Value | Carrying Value | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Carrying Value | Carrying Value | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Carrying Value | Carrying Value | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Carrying Value | Carrying Value | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Impaired Loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired loans, at fair value | ' | ' | ' | ' | $2,900 | ' | $2,900 | ' | ' | ' | ' | ' | ' | $1,137 | $1,420 | $1,137 | $1,420 | $295 | $199 | $295 | $199 | $1,276 | $36 | $1,276 | $36 | $220 | $275 | $220 | $275 | ' | ' | ' | ' |
Valuation allowance of impaired loans | 818 | 712 | ' | ' | 370 | ' | 370 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of impaired loans | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total provision for loan losses | ' | ' | ' | ' | ' | ' | 536 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (decrease) in allowance for specific impaired loans | ' | ' | ' | ' | -28 | ' | 106 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other real estate owned, net: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other real estate owned | ' | ' | ' | ' | 1,200 | ' | 1,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,180 | 1,361 | 1,180 | 1,361 |
Outstanding balance of other real estate owned | 2,306 | 3,379 | 3,788 | 4,168 | 2,700 | ' | 2,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance of other real estate owned | 1,476 | 1,524 | 1,459 | 1,668 | 1,500 | ' | 1,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write downs of other real estate owned | ' | ' | ' | ' | 10 | 0 | 10 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan servicing rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan servicing rights, at fair value | 1,245 | 1,344 | ' | ' | 344 | ' | 344 | ' | 201 | 344 | 201 | 344 | 201 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance of loan servicing rights | ' | ' | ' | ' | 414 | ' | 414 | ' | 260 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance of loan servicing rights | ' | ' | ' | ' | 70 | ' | 70 | ' | 59 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write-downs of loan servicing rights | ' | ' | ' | ' | $17 | ' | $12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 3) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value Measurements | ' | ' |
Loan servicing rights | 1,245 | 1,344 |
Non-recurring | ' | ' |
Fair Value Measurements | ' | ' |
Impaired loans, at fair value | 2,900 | ' |
Other real estate owned | 1,200 | ' |
Loan servicing rights | 344 | 201 |
Non-recurring | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Loan servicing rights | 344 | 201 |
Non-recurring | Discounted cash flow | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Loan servicing rights | 344 | 201 |
Non-recurring | Minimum | Discounted cash flow | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
constant prepayment rates (as a percent) | 7.00% | 7.00% |
Non-recurring | Maximum | Discounted cash flow | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
constant prepayment rates (as a percent) | 22.00% | 23.00% |
Non-recurring | Weighted average | Discounted cash flow | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
constant prepayment rates (as a percent) | 11.00% | 10.00% |
Non-recurring | 1-4 family residential | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Impaired loans, at fair value | 1,137 | 1,420 |
Non-recurring | 1-4 family residential | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Impaired loans, at fair value | 1,137 | 1,420 |
Other real estate owned | 1,180 | 1,361 |
Non-recurring | 1-4 family residential | Minimum | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 0.00% | 0.00% |
Non-recurring | 1-4 family residential | Maximum | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 99.00% | 99.00% |
Non-recurring | 1-4 family residential | Weighted average | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 6.00% | 14.00% |
Non-recurring | Multi-family residential | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Impaired loans, at fair value | 295 | 199 |
Non-recurring | Multi-family residential | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Impaired loans, at fair value | 295 | 199 |
Non-recurring | Multi-family residential | Minimum | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 0.00% | 12.00% |
Non-recurring | Multi-family residential | Maximum | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 32.00% | 32.00% |
Non-recurring | Multi-family residential | Weighted average | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 3.00% | 22.00% |
Non-recurring | Non-farm & non-residential | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Impaired loans, at fair value | 1,276 | 36 |
Non-recurring | Non-farm & non-residential | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Impaired loans, at fair value | 1,276 | 36 |
Non-recurring | Non-farm & non-residential | Minimum | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 0.00% | 0.00% |
Non-recurring | Non-farm & non-residential | Maximum | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 61.00% | 61.00% |
Non-recurring | Non-farm & non-residential | Weighted average | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 20.00% | 31.00% |
Non-recurring | Agricultural | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Impaired loans, at fair value | 220 | 275 |
Non-recurring | Agricultural | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Impaired loans, at fair value | 220 | 275 |
Non-recurring | Agricultural | Minimum | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 5.00% | 5.00% |
Non-recurring | Agricultural | Maximum | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 44.00% | 44.00% |
Non-recurring | Agricultural | Weighted average | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 24.00% | 20.00% |
Non-recurring | Residential | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Other real estate owned | 1,180 | 1,361 |
Non-recurring | Residential | Minimum | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 0.00% | 0.00% |
Non-recurring | Residential | Minimum | Income approach | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
capitalization rate (as a percent) | 8.00% | 8.00% |
Non-recurring | Residential | Maximum | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 32.00% | 33.00% |
Non-recurring | Residential | Maximum | Income approach | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
capitalization rate (as a percent) | 8.00% | 8.00% |
Non-recurring | Residential | Weighted average | Sales comparison | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
Adjustment for differences between the comparable sales and income data available (as a percent) | 6.00% | 4.00% |
Non-recurring | Residential | Weighted average | Income approach | Level 3 | ' | ' |
Fair Value Measurements | ' | ' |
capitalization rate (as a percent) | 8.00% | 8.00% |
FAIR_VALUE_MEASUREMENTS_Detail3
FAIR VALUE MEASUREMENTS (Details 4) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Assets | ' | ' |
Securities | $224,168 | $230,396 |
Trading Assets | 5,242 | ' |
Mortgage loans held for sale | 495 | 223 |
Interest receivable | 3,254 | 3,618 |
Financial liabilities | ' | ' |
Interest payable | 679 | 736 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ' | ' |
Financial Assets | ' | ' |
Cash and cash equivalents | 15,039 | 23,160 |
Securities | 294 | 289 |
Trading Assets | 5,242 | ' |
Financial liabilities | ' | ' |
Deposits | 415,247 | 428,239 |
Federal Funds Purchased | 4,649 | ' |
Significant Other Observable Inputs (Level 2) | ' | ' |
Financial Assets | ' | ' |
Securities | 223,874 | 230,107 |
Mortgage loans held for sale | 500 | 229 |
Interest receivable | 1,216 | 1,315 |
Financial liabilities | ' | ' |
Deposits | 184,104 | 191,523 |
Securities sold under agreements to repurchase and other borrowings | 11,459 | 13,013 |
FHLB advances | 77,953 | 52,220 |
Interest payable | 670 | 727 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Financial Assets | ' | ' |
Loans, net | 490,183 | 459,796 |
Interest receivable | 2,038 | 2,303 |
Financial liabilities | ' | ' |
Subordinated debentures | 7,210 | 7,217 |
Interest payable | 9 | 9 |
Carrying Value | ' | ' |
Financial Assets | ' | ' |
Cash and cash equivalents | 15,039 | 23,160 |
Securities | 224,168 | 230,396 |
Trading Assets | 5,242 | ' |
Mortgage loans held for sale | 495 | 223 |
Loans, net | 490,520 | 463,214 |
FHLB stock | 5,981 | 6,731 |
Interest receivable | 3,254 | 3,618 |
Financial liabilities | ' | ' |
Deposits | 597,409 | 617,400 |
Securities sold under agreements to repurchase and other borrowings | 11,297 | 12,867 |
Federal Funds Purchased | 4,649 | ' |
FHLB advances | 81,414 | 57,847 |
Subordinated debentures | 7,217 | 7,217 |
Interest payable | 679 | 736 |
Fair Value | ' | ' |
Financial Assets | ' | ' |
Cash and cash equivalents | 15,039 | 23,160 |
Securities | 224,168 | 230,396 |
Trading Assets | 5,242 | ' |
Mortgage loans held for sale | 500 | 229 |
Loans, net | 490,183 | 459,796 |
Interest receivable | 3,254 | 3,618 |
Financial liabilities | ' | ' |
Deposits | 599,351 | 619,762 |
Securities sold under agreements to repurchase and other borrowings | 11,459 | 13,013 |
Federal Funds Purchased | 4,649 | ' |
FHLB advances | 77,953 | 52,220 |
Subordinated debentures | 7,210 | 7,217 |
Interest payable | $679 | $736 |
CHANGES_IN_ACCUMULATED_OTHER_C2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' | ' |
Beginning Balance | ($1,875) | $3,031 | ($5,126) | $4,283 |
Unrealized holding gains (losses) for the period, net of tax | 1,892 | -4,404 | 5,267 | -5,465 |
Reclassification adjustment for: | ' | ' | ' | ' |
Securities gains realized in income, net | -245 | -485 | -433 | -774 |
Income taxes | -83 | -165 | -147 | -263 |
Securities gains realized in income, net of income taxes | -162 | -320 | -286 | -511 |
Net current period other comprehensive income | 1,730 | -4,724 | 4,981 | -5,976 |
Ending Balance | ($145) | ($1,693) | ($145) | ($1,693) |
CHANGES_IN_ACCUMULATED_OTHER_C3
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME BY COMPONENT (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Reclassifications out of AOCI by component | ' | ' | ' | ' |
Securities gains, net | ($245) | ($485) | ($433) | ($774) |
Provision for income taxes | 368 | 468 | 661 | 870 |
Net of tax | -1,904 | -1,785 | -3,675 | -3,494 |
Unrealized Gains and Losses on Available for Sale Securities | Amount Reclassified From Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Reclassifications out of AOCI by component | ' | ' | ' | ' |
Securities gains, net | -245 | -485 | -433 | -774 |
Provision for income taxes | 83 | 165 | 147 | 263 |
Net of tax | ($162) | ($320) | ($286) | ($511) |