Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 01, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BAYK | |
Entity Registrant Name | BAY BANKS OF VIRGINIA INC | |
Entity Central Index Key | 1,034,594 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,774,856 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | [1] |
ASSETS | |||
Cash and due from banks | $ 5,141 | $ 4,969 | |
Interest-bearing deposits | 20,050 | 15,330 | |
Certificates of deposit | 5,456 | 5,735 | |
Federal funds sold | 1,546 | 271 | |
Securities available-for-sale, at fair value | 54,012 | 54,090 | |
Restricted securities | 2,422 | 2,731 | |
Loans receivable, net of allowance for loan losses of $3,547 and $4,223 | 347,755 | 343,323 | |
Loans held for sale | 2,425 | 270 | |
Premises and equipment, net | 11,231 | 11,646 | |
Accrued interest receivable | 1,270 | 1,318 | |
Other real estate owned, net | 2,641 | 1,870 | |
Bank owned life insurance | 7,719 | 7,595 | |
Goodwill | 2,808 | 2,808 | |
Mortgage servicing rights | 620 | 658 | |
Other assets | 3,243 | 3,682 | |
Total assets | 468,339 | 456,296 | |
LIABILITIES | |||
Noninterest-bearing deposits | 74,157 | 65,842 | |
Savings and interest-bearing demand deposits | 177,075 | 166,628 | |
Time deposits | 127,797 | 127,388 | |
Total deposits | 379,029 | 359,858 | |
Securities sold under repurchase agreements | 8,182 | 7,161 | |
Federal Home Loan Bank advances | 30,000 | 40,000 | |
Subordinated debt, net of issuance costs | 6,852 | 6,844 | |
Other liabilities | 3,064 | 2,864 | |
Total liabilities | 427,127 | 416,727 | |
SHAREHOLDERS' EQUITY | |||
Common stock ($5 par value; authorized - 10,000,000 shares; outstanding - 4,774,856 and 4,774,856 shares, respectively) | 23,874 | 23,874 | |
Additional paid-in capital | 2,828 | 2,812 | |
Retained earnings | 14,769 | 13,659 | |
Accumulated other comprehensive loss, net | (259) | (776) | |
Total shareholders' equity | 41,212 | 39,569 | |
Total liabilities and shareholders' equity | $ 468,339 | $ 456,296 | |
[1] | Derived from Audited December 31, 2015 Financial Statements |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | [1] |
Loans, allowance for loan losses | $ 3,547 | $ 4,223 | |
Common stock, par value | $ 5 | $ 5 | |
Common stock, authorized shares | 10,000,000 | 10,000,000 | |
Common stock, outstanding shares | 4,774,856 | 4,774,856 | |
[1] | Derived from Audited December 31, 2015 Financial Statements |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
INTEREST INCOME | ||||
Loans, including fees | $ 4,013 | $ 3,715 | $ 7,987 | $ 7,390 |
Securities: | ||||
Taxable | 211 | 132 | 418 | 258 |
Tax-exempt | 135 | 86 | 271 | 174 |
Federal funds sold | 1 | 1 | ||
Interest-bearing deposit accounts | 12 | 13 | 27 | 21 |
Certificates of deposit | 20 | 9 | 42 | 17 |
Total interest income | 4,392 | 3,955 | 8,746 | 7,860 |
INTEREST EXPENSE | ||||
Deposits | 641 | 570 | 1,286 | 1,086 |
Federal funds purchased | 1 | 1 | ||
Securities sold under repurchase agreements | 4 | 2 | 6 | 4 |
Subordinated debt | 118 | 42 | 236 | 42 |
FHLB advances | 117 | 87 | 242 | 172 |
Total interest expense | 881 | 701 | 1,771 | 1,304 |
Net interest income | 3,511 | 3,254 | 6,975 | 6,556 |
Provision for loan losses | 183 | 205 | 148 | 270 |
Net interest income after provision for loan losses | 3,328 | 3,049 | 6,827 | 6,286 |
NON-INTEREST INCOME | ||||
Income from fiduciary activities | 236 | 171 | 443 | 392 |
Service charges and fees on deposit accounts | 228 | 226 | 455 | 449 |
VISA-related fees | 59 | 62 | 105 | 109 |
Non-deposit product income | 74 | 117 | 180 | 247 |
Other service charges and fees | 149 | 139 | 297 | 270 |
Secondary market lending income | 223 | 140 | 300 | 238 |
Increase in cash surrender value of life insurance | 61 | 62 | 124 | 125 |
Net gains on sale of securities available for sale | 104 | 6 | 110 | 2 |
Other real estate losses | (53) | (41) | (88) | (80) |
Net losses on the disposal of fixed assets | (7) | (7) | ||
Other income | 3 | 42 | 16 | 57 |
Total non-interest income | 1,084 | 917 | 1,942 | 1,802 |
NON-INTEREST EXPENSES | ||||
Salaries and employee benefits | 1,815 | 1,840 | 3,870 | 3,888 |
Occupancy expense | 451 | 442 | 899 | 877 |
Software maintenance | 181 | 145 | 342 | 290 |
Bank franchise tax | 61 | 50 | 121 | 98 |
VISA expense | 22 | 33 | 61 | 64 |
Telephone expense | 35 | 33 | 66 | 66 |
FDIC assessments | 103 | 64 | 184 | 129 |
Foreclosure property expense | 17 | 11 | 29 | 21 |
Consulting expense | 74 | 90 | 129 | 165 |
Other expense | 877 | 908 | 1,615 | 1,663 |
Total non-interest expenses | 3,636 | 3,616 | 7,316 | 7,261 |
Net income before income taxes | 776 | 350 | 1,453 | 827 |
Income tax expense | 190 | 56 | 343 | 152 |
Net income | $ 586 | $ 294 | $ 1,110 | $ 675 |
Basic Earnings Per Share | ||||
Average basic shares outstanding | 4,774,856 | 4,802,032 | 4,774,856 | 4,805,922 |
Earnings per share, basic | $ 0.12 | $ 0.06 | $ 0.23 | $ 0.14 |
Diluted Earnings Per Share | ||||
Average diluted shares outstanding | 4,794,783 | 4,819,322 | 4,792,574 | 4,819,487 |
Earnings per share, diluted | $ 0.12 | $ 0.06 | $ 0.23 | $ 0.14 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income | $ 586 | $ 294 | $ 1,110 | $ 675 |
Unrealized gains (losses) on securities: | ||||
Unrealized holding gains (losses) arising during the period | 385 | (564) | 893 | (264) |
Deferred tax (expense) benefit | (130) | 192 | (303) | 90 |
Reclassification of net securities gains recognized in net income | (104) | (6) | (110) | (2) |
Deferred tax expense | 35 | 2 | 37 | 1 |
Unrealized gains (losses) adjustment, net of tax | 186 | (376) | 517 | (175) |
Defined benefit plan: | ||||
Total other comprehensive income (loss) | 186 | (376) | 517 | (175) |
Comprehensive income (loss) | 772 | (82) | 1,627 | 500 |
Pension Plan, Defined Benefit | ||||
Defined benefit plan: | ||||
Net periodic cost | 7 | 3 | 12 | 4 |
Net loss | (7) | (3) | (12) | (4) |
Deferred tax benefit | 0 | 0 | 0 | 0 |
Defined benefit/ post retirement plan adjustment, net of tax | 0 | 0 | 0 | 0 |
Other Postretirement Benefit Plan, Defined Benefit | ||||
Defined benefit plan: | ||||
Net periodic cost | 12 | 13 | 25 | 26 |
Net loss | (12) | (13) | (25) | (26) |
Deferred tax benefit | 0 | 0 | 0 | 0 |
Defined benefit/ post retirement plan adjustment, net of tax | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | |
Balance at beginning of period at Dec. 31, 2015 | $ 39,569 | [1] | $ 23,874 | $ 2,812 | $ 13,659 | $ (776) |
Balance at beginning of period, Shares at Dec. 31, 2015 | 4,774,856 | [1] | 4,774,856 | |||
Net income | $ 1,110 | 1,110 | ||||
Other comprehensive income | 517 | 517 | ||||
Stock-based compensation expense | 16 | 16 | ||||
Balance at end of period at Jun. 30, 2016 | $ 41,212 | $ 23,874 | $ 2,828 | $ 14,769 | $ (259) | |
Balance at end of period, Shares at Jun. 30, 2016 | 4,774,856 | 4,774,856 | ||||
[1] | Derived from Audited December 31, 2015 Financial Statements |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows From Operating Activities | ||
Net income | $ 1,110 | $ 675 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 528 | 478 |
Net amortization and accretion of securities | 217 | 179 |
Amortization of subordinated debt issuance costs | 8 | 1 |
Provision for loan losses | 148 | 270 |
Stock compensation expense | 16 | 17 |
Deferred tax benefit | (6) | (12) |
Gain on securities available-for-sale | (110) | (2) |
Increase in OREO valuation allowance | 53 | 72 |
Loss on sale of other real estate | 35 | 8 |
Loss on the disposal of fixed assets | 7 | |
Mortgage servicing rights | 38 | (36) |
Loan originations for sale | (9,035) | (5,801) |
Loan sales | 8,274 | 5,200 |
Gain on sold loans | (221) | (109) |
Increase in cash surrender value of life insurance | (124) | (125) |
Decrease (increase) in accrued income and other assets | 227 | (124) |
Increase in other liabilities | 202 | 270 |
Net cash provided by operating activities | 1,360 | 968 |
Cash Flows From Investing Activities | ||
Proceeds from maturities and principal paydowns of available-for-sale securities | 1,683 | 1,595 |
Proceeds from sales and calls of available-for-sale securities | 9,097 | 2,076 |
Maturities of certificates of deposit | 248 | 248 |
Purchases of available-for-sale securities | (9,995) | (8,815) |
Sales of restricted securities | 309 | 169 |
Increase in federal funds sold | (1,275) | (2,068) |
Loan (originations) and principal collections, net | (6,840) | (18,480) |
Proceeds from sale of other real estate | 227 | 99 |
Purchases of premises and equipment | (114) | (737) |
Net cash used in investing activities | (6,660) | (25,913) |
Cash Flows From Financing Activities | ||
Net increase in demand, savings, and other interest-bearing deposits | 18,762 | 28,057 |
Net increase (decrease) in time deposits | 409 | (2,041) |
Repurchase of common stock | (168) | |
Net increase in securities sold under repurchase agreements | 1,021 | 2,775 |
Issuance of subordinated debt, net | 6,842 | |
Decrease in Federal Home Loan Bank advances | (10,000) | (5,000) |
Net cash provided by financing activities | 10,192 | 30,465 |
Net increase in cash and due from banks | 4,892 | 5,520 |
Cash and cash equivalents (including interest-earning deposits) at beginning of period | 20,299 | 20,965 |
Cash and cash equivalents (including interest-earning deposits) at end of period | 25,191 | 26,485 |
Cash paid for: | ||
Interest | 1,758 | 1,251 |
Income taxes | 70 | 390 |
Non-cash investing and financing: | ||
Unrealized gain (loss) on investment securities | 783 | (266) |
Change in fair value of pension and post-retirement obligation | 0 | 0 |
Loans transferred to other real estate owned | 1,203 | 129 |
Loans originated to facilitate sale of OREO | 116 | 118 |
Changes in deferred taxes resulting from OCI transactions | 266 | $ 90 |
Transfer of loans to held for sale | $ 1,173 |
General
General | 6 Months Ended |
Jun. 30, 2016 | |
General | Note 1: General Bay Banks of Virginia, Inc. (the “Company”) owns 100% of the Bank of Lancaster (the “Bank”), 100% of Bay Trust Company, Inc. (the “Trust Company”) and 100% of Steptoes Holdings, LLC (“Steptoes Holdings”). The consolidated financial statements include the accounts of the Bank, the Trust Company, Steptoes Holdings and Bay Banks of Virginia, Inc. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”) and to the general practices within the banking industry. In management’s opinion, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of the consolidated 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 or for any other interim periods. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Certain amounts presented in the consolidated financial statements of prior periods have been reclassified to conform to current year presentations. The reclassifications had no effect on net income, net income per share or shareholders’ equity as previously reported. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Significant Accounting Policies | Note 2: Significant Accounting Policies Certificates of Deposit Prior to January 1, 2016, the Company included its investments in certificates of deposit on the consolidated balance sheets in securities available-for sale, at fair value. Effective January 1, 2016, the Company is presenting certificates of deposit separately on the consolidated balance sheets and removing them from the available-for-sale category. As of December 31, 2015, the unrealized gain related to the certificates of deposit included in securities available-for-sale was $31 thousand and the tax effected unrealized gain included in accumulated other comprehensive income was $20 thousand. The unrealized gain and related impact were reversed the first quarter of 2016. Loans The Company grants mortgage loans on real estate, commercial and industrial loans and consumer and other loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans on real estate. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Company’s market areas. Loans are reported at their recorded investment, which is the outstanding principal balance net of any unearned income, such as deferred fees and costs, and charge-offs. Interest on loans is recognized over the term of the loan and is calculated using the interest method on principal amounts outstanding. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment of the related loan yield over the contractual term of the loan, adjusted for early pay-offs, where applicable. The accrual of interest is generally discontinued at the time a loan is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Payments received for loans no longer accruing interest are applied to the unpaid principal balance. Loans greater than 90 days past due may remain on accrual status if the credit is well-secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than 180 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are charged off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual and past due policies are materially the same for all types of loans. All interest accrued but not collected for loans that are placed on non-accrual or charged off are reversed against interest income. Any interest received on these loans is accounted for on the cash basis or cost recovery method until qualifying for return to accrual. Generally, a loan is returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or it becomes well secured and in the process of collection. Allowance for loan losses (“ALL”) The ALL reflects management’s judgment of probable loan losses inherent in the portfolio at the balance sheet date. Management uses a disciplined process and methodology to establish the ALL each quarter. To determine the total ALL, the Company estimates the reserves needed for each homogenous segment of the portfolio, plus any loans analyzed individually for impairment. Considerations include historical experience, the nature and volume of the loan portfolio, adverse situations that may affect a borrower’s ability to repay, estimated value of any underlying collateral, prevailing local and national economic conditions, and internal policies and procedures including credit risk management and underwriting. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as conditions change. Management employs a risk rating system to evaluate and consistently categorize loan portfolio credit risk. Loans assigned risk rating grades include all commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which are impaired, loans to real estate developers and contractors, consumer loans greater than $250 thousand with chronic delinquency, and troubled debt restructures (“TDRs”). The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades are evaluated as new information becomes available for each borrowing relationship or at least quarterly. All other loans not specifically assigned a risk rating grade are monitored as a discrete pool of loans generally based on delinquency status. Risk rating categories are as follows: Pass Watch Special Mention Substandard Doubtful Loss The ALL consists of specific, general, and unallocated components. The specific component is determined by identifying impaired loans (as described below) then evaluating each one to calculate the amount of impairment. Impaired loans measured for impairment generally include: (1) non-accruing Special mention, Substandard and Doubtful loans in excess of $250,000; (2) Substandard and Doubtful loans in excess of $500,000; (3) Special Mention loans in excess of $500,000 if any of the loans in the relationship are more than 30 days past due or if the borrower has filed for bankruptcy; and (4) all TDRs. A specific allowance arises when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component collectively evaluates smaller commercial loans, residential mortgages and consumer loans, grouped into segments and classes. Historical loss experience is calculated and applied to each segment or class, then adjusted for qualitative factors. Qualitative factors include changes in the local and national economic outlook, including unemployment, interest rates, inflation rates and real estate trends; the level and trend of past due and nonaccrual loans; strength of policies and procedures; and oversight of credit risk and quality of underwriting. These qualitative adjustments reflect management’s judgment of risks inherent in the segments. An unallocated component is maintained if needed to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Changes in the allowance for loan losses and the related provision expense can materially affect net income. The specific component of the ALL calculation accounts for the loan loss reserve necessary on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Accrual of interest may or may not be discontinued for any given impaired loan. Impairment is measured by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Because large groups of smaller balance homogeneous loans are collectively evaluated for impairment, the Company does not generally separately identify smaller balance individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. The general component of the ALL calculation collectively evaluates groups of loans in segments or classes, as noted above. The segments are: (1) Mortgage loans on real estate; (2) Commercial and industrial loans; and (3) Consumer and other loans. The segment for Mortgage loans on real estate is disaggregated into the following classes: (1) Construction, land and land development; (2) Farmland; (3) Residential first mortgages; (4) Residential revolving and junior mortgages; (5) Commercial mortgages (non-owner-occupied); and (6) Commercial mortgages (owner-occupied). Loans in segment 1 are secured by real estate. Loans in segments 2 and 3 are secured by other types of collateral or are unsecured. A given segment or class may not reflect the purpose of a loan. For example, a business owner may provide his residence as collateral for a loan to his company, in which case the loan would be grouped in a residential mortgage class. Historical loss factors are calculated for the prior 19 quarters by segment and class, and then applied to the current balances in each segment and class. Finally, qualitative factors are applied to each segment and class. Construction and development loans carry risks that the project will not be finished according to schedule or according to budget and the value of the collateral, at any point in time, may be less than the principal amount of the loan. These loans also bear the risk that the general contractor may face financial pressure unrelated to the project. Loans secured by land, farmland and residential mortgages carry the risk of continued credit-worthiness of the borrower and changes in value of the underlying real estate collateral. Commercial mortgages and commercial and industrial loans carry risks associated with the profitable operation of a business and its related cash flows. Additionally, commercial and industrial loans carry risks associated with the value of collateral other than real estate which may depreciate over time. Consumer loans carry risks associated with the continuing credit-worthiness of the borrower and are more likely than real estate loans to be adversely affected by divorce, unemployment, personal illness or bankruptcy of an individual. Consumer loans secured by automobiles carry risks associated with rapidly depreciating collateral. Consumer loans include credit cards, which are unsecured. The summation of the specific, general and unallocated components results in the total estimated ALL. Management may also include an unallocated component to cover uncertainties in the level of probable losses. This estimate is inherently subjective and actual losses could be greater or less than the estimates. Additions to the ALL are made by charges to earnings through the provision for loan losses. Charge-offs result from credit exposures deemed to be uncollectible and the ALL is reduced by these. Recoveries of previously charged off amounts are credited back to the ALL. Charge-off policies are materially the same for all types of loans. Mortgage servicing rights (“MSRs”) MSRs are included on the consolidated balance sheet and recorded at fair value on an ongoing basis. Changes in the fair value of the MSRs are recorded in the results of operations. A fair value analysis of MSRs is performed on a quarterly basis. |
Amendments to the Accounting St
Amendments to the Accounting Standards Codification | 6 Months Ended |
Jun. 30, 2016 | |
Amendments to the Accounting Standards Codification | Note 3: Amendments to the Accounting Standards Codification In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326) During March 2016, the FASB issued ASU No. 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Shares-Based Payment Accounting.” In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers |
Securities
Securities | 6 Months Ended |
Jun. 30, 2016 | |
Securities | Note 4: Securities The aggregate amortized costs and fair values of the available-for-sale securities portfolio are as follows: (Dollars in thousands) Available-for-sale securities June 30, 2016 Amortized Gross Gross Fair Corporate bonds $ 6,445 $ 8 $ — $ 6,453 U.S. Government agencies 23,626 201 (16 ) 23,811 State and municipal obligations 22,966 782 — 23,748 $ 53,037 $ 991 $ (16 ) $ 54,012 Available-for-sale securities December 31, 2015 Amortized Gross Gross Fair Corporate bonds $ 3,950 $ — $ (5 ) $ 3,945 U.S. Government agencies 21,375 69 (156 ) 21,288 State and municipal obligations 28,599 313 (55 ) 28,857 $ 53,924 $ 382 $ (216 ) $ 54,090 Gross realized gains and gross realized losses on sales and calls of securities were as follows: For the three months ended For the six months ended June 30, June 30, (Dollars in thousands) 2016 2015 2016 2015 Gross realized gains $ 105 $ 24 $ 120 $ 24 Gross realized losses (1 ) (18 ) (10 ) (22 ) Net realized gains (losses) $ 104 $ 6 $ 110 $ 2 Aggregate proceeds $ 6,395 $ 1,710 $ 9,097 $ 2,324 Average yields (taxable equivalent) on securities were 3.08% and 2.45% for the three months ended June 30, 2016 and 2015, respectively, and 3.06% and 2.46% for the six months ended June 30, 2016 and 2015, respectively. Securities with a market value of $10.2 million and $8.6 million were pledged as collateral for repurchase agreements and for other purposes as required by law as of June 30, 2016 and December 31, 2015, respectively. As of June 30, 2016 and December 31, 2015, all the securities pledged to repurchase agreements were state and municipal obligations. All the repurchase agreements had remaining contractual maturities that were overnight and continuous. Securities sold under repurchase agreements were $8.2 million and $7.2 million as of June 30, 2016 and December 31, 2015, respectively, and included in liabilities on the consolidated balance sheets. The securities pledged to each agreement are reviewed daily and can be changed at the option of the Bank with minimal risk of loss due to fair value. Securities in an unrealized loss position at June 30, 2016 and December 31, 2015, by duration of the unrealized loss, are shown below. The unrealized loss positions were directly related to interest rate movements as there is minimal credit risk exposure in these investments. All agency securities, and states and municipal securities are investment grade or better and their losses are considered temporary. Management does not intend to sell the securities and does not expect to be required to sell the securities. Furthermore, all amortized cost bases are expected to be recovered. Bonds with unrealized loss positions at June 30, 2016 included six federal agencies and two municipals. Bonds with unrealized loss positions at December 31, 2015 included 24 federal agencies, one corporate bond and 17 municipals. The tables are shown below. (Dollars in thousands) Less than 12 months 12 months or more Total June 30, 2016 Fair Unrealized Fair Unrealized Fair Unrealized Temporarily impaired securities - U.S. Government agencies $ 901 $ (2 ) $ 1,455 $ (14 ) $ 2,356 $ (16 ) Less than 12 months 12 months or more Total December 31, 2015 Fair Unrealized Fair Unrealized Fair Unrealized Corporate bonds $ 495 $ (5 ) $ — $ — $ 495 $ (5 ) U.S. Government agencies 13,871 (141 ) 1,619 (15 ) 15,490 (156 ) States and municipal obligations 2,566 (17 ) 3,281 (38 ) 5,847 (55 ) Total temporarily impaired securities $ 16,932 $ (163 ) $ 4,900 $ (53 ) $ 21,832 $ (216 ) The Company’s investment in Federal Home Loan Bank of Atlanta (“FHLB”) stock totaled $1.7 million and $2.0 million at June 30, 2016 and December 31, 2015, respectively. The Company also had an investment in Federal Reserve Bank of Richmond (“FRB”) stock which totaled $565 thousand and $505 thousand at June 30, 2016 and December 31, 2015, respectively. The investments in both FHLB and FRB stock are required investments related to the Bank’s membership with the FHLB and FRB. These securities do not have a readily determinable fair value as their ownership is restricted, and they lack an active market for trading. Additionally, per charter provisions related to the FHLB and FRB stock, all repurchase transactions of such stock must occur at par. Accordingly, these securities are carried at cost, and are periodically evaluated for impairment. The Company’s determination as to whether its investment in FHLB and FRB stock is impaired is based on management’s assessment of the ultimate recoverability of its par value rather than recognizing temporary declines in its value. The determination of whether the decline affects the ultimate recoverability of the investments is influenced by available information regarding various factors. These factors include, among others, the significance of the decline in net assets of the issuing banks as compared to the capital stock amount reported by these banks, and the length of time a decline has persisted; commitments by such banks to make payments required by law or regulation and the level of such payments in relation to the operating performance of the issuing bank; and the overall liquidity position of the issuing bank. Based on its most recent analysis of publicly available information regarding the financial condition of the issuing banks, management concluded that no impairment existed in the carrying value of FHLB and FRB stock. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2016 | |
Loans | Note 5: Loans The following is a summary of the balances of loans: (Dollars in thousands) June 30, December 31, Mortgage loans on real estate: Construction, Land and Land Development $ 39,044 $ 42,129 Farmland 1,038 1,030 Commercial Mortgages (Non-Owner Occupied) 29,578 29,086 Commercial Mortgages (Owner Occupied) 46,965 43,956 Residential First Mortgages 172,780 164,405 Residential Revolving and Junior Mortgages 25,987 26,497 Commercial and Industrial loans 31,767 35,104 Consumer Loans 3,790 5,015 Total loans 350,949 347,222 Net unamortized deferred loan costs 353 324 Allowance for loan losses (3,547 ) (4,223 ) Loans, net $ 347,755 $ 343,323 The recorded investment in past due and non-accruing loans is shown in the following table. A loan past due by more than 90 days is generally placed on nonaccrual unless it is both well secured and in the process of collection. 90 Days or (Dollars in thousands) 30-89 More Past Total Past Loans Past Due and Nonaccruals Days Due and Due and Total June 30, 2016 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Construction, Land and Land Development $ 63 $ — $ 632 $ 695 $ 38,349 $ 39,044 Farmland — — — — 1,038 1,038 Commercial Mortgages (Non-Owner Occupied) — — — — 29,578 29,578 Commercial Mortgages (Owner Occupied) 943 — 1,759 2,702 44,263 46,965 Residential First Mortgages 509 205 2,461 3,175 169,605 172,780 Residential Revolving and Junior Mortgages 51 — 177 228 25,759 25,987 Commercial and Industrial — — 94 94 31,673 31,767 Consumer Loans 19 11 24 54 3,736 3,790 Total $ 1,585 $ 216 $ 5,147 $ 6,948 $ 344,001 $ 350,949 90 Days or 30-89 More Past Total Past Loans Past Due and Nonaccruals Days Due and Due and Total December 31, 2015 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Construction, Land and Land Development $ 93 $ — $ 672 $ 765 $ 41,364 $ 42,129 Farmland — — — — 1,030 1,030 Commercial Mortgages (Non-Owner Occupied) 264 — — 264 28,822 29,086 Commercial Mortgages (Owner Occupied) 133 — 2,350 2,483 41,473 43,956 Residential First Mortgages 1,304 — 2,841 4,145 160,260 164,405 Residential Revolving and Junior Mortgages 70 — 277 347 26,150 26,497 Commercial and Industrial 10 — 285 295 34,809 35,104 Consumer Loans 32 11 8 51 4,964 5,015 Total $ 1,906 $ 11 $ 6,433 $ 8,350 $ 338,872 $ 347,222 |
Allowance for Loan Losses
Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2016 | |
Allowance for Loan Losses | Note 6: Allowance for Loan Losses Loans Evaluated for Impairment Loan receivables evaluated for impairment individually and collectively by segment as of June 30, 2016 and December 31, 2015 are as follows: Mortgage Commercial (Dollars in thousands) Loans and Consumer As of June 30, 2016 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 11,041 $ 92 $ — $ 11,133 Collectively evaluated for impairment 304,351 31,675 3,790 339,816 Total Gross Loans $ 315,392 $ 31,767 $ 3,790 $ 350,949 Mortgage Commercial Loans and Consumer As of December 31, 2015 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 10,542 $ 284 $ — $ 10,826 Collectively evaluated for impairment 296,561 34,820 5,015 336,396 Total Gross Loans $ 307,103 $ 35,104 $ 5,015 $ 347,222 Allowance for Loan Losses The allowance for loan losses disaggregated based on loan receivables evaluated for impairment individually and collectively by segment as of June 30, 2016 and December 31, 2015 are as follows: Mortgage Commercial (Dollars in thousands) Loans and Consumer As of June 30, 2016 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 564 $ 92 $ — $ 656 Collectively evaluated for impairment 2,431 343 117 2,891 Total allowance for loan losses $ 2,995 $ 435 $ 117 $ 3,547 Mortgage Commercial Loans and Consumer As of December 31, 2015 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 1,256 $ 278 $ — $ 1,534 Collectively evaluated for impairment 2,246 321 122 2,689 Total allowance for loan losses $ 3,502 $ 599 $ 122 $ 4,223 A disaggregation and an analysis of the change in the allowance for loan losses by segment is shown below. (Dollars in thousands) Mortgage Commercial For the Three Months Ended Loans on and Consumer June 30, 2016 Real Estate Industrial Loans Total ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 3,410 $ 579 $ 118 $ 4,107 (Charge-offs) (573 ) (158 ) (20 ) (751 ) Recoveries 4 — 4 8 Provision 154 14 15 183 Ending Balance $ 2,995 $ 435 $ 117 $ 3,547 Mortgage Commercial For the Three Months Ended Loans on and Consumer June 30, 2015 Real Estate Industrial Loans Total ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,763 $ 315 $ 169 $ 3,247 (Charge-offs) — — (54 ) (54 ) Recoveries 5 — 36 41 Provision 121 105 (21 ) 205 Ending Balance $ 2,889 $ 420 $ 130 $ 3,439 (Dollars in thousands) Mortgage Commercial For the Six Months Ended Loans on and Consumer June 30, 2016 Real Estate Industrial Loans Total ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 3,502 $ 599 $ 122 $ 4,223 (Charge-offs) (656 ) (158 ) (31 ) (845 ) Recoveries 10 5 6 21 Provision 139 (11 ) 20 148 Ending Balance $ 2,995 $ 435 $ 117 $ 3,547 Mortgage Commercial For the Six Months Ended Loans on and Consumer June 30, 2015 Real Estate Industrial Loans Total ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,778 $ 323 $ 104 $ 3,205 (Charge-offs) (1 ) — (86 ) (87 ) Recoveries 10 — 41 51 Provision 102 97 71 270 Ending Balance $ 2,889 $ 420 $ 130 $ 3,439 Internal Risk Rating Grades Internal risk rating grades are generally assigned to commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which are impaired, loans to real estate developers and contractors, consumer loans greater than $250,000 with chronic delinquency, and TDRs, as shown in the following table. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades (refer to Note 2) are evaluated as new information becomes available for each borrowing relationship or at least quarterly. Construction, Commercial Commercial Land and Mortgages Mortgages Commercial (Dollars in thousands) Land (Non-Owner (Owner and As of June 30, 2016 Development Farmland Occupied) Occupied) Industrial Total Grade: Pass $ 31,736 $ 1,038 $ 24,815 $ 34,255 $ 29,202 $ 121,046 Watch 5,280 — 4,240 8,561 2,183 20,264 Special mention — — 275 1,479 128 1,882 Substandard 2,028 — 248 2,670 254 5,200 Doubtful — — — — — — Total $ 39,044 $ 1,038 $ 29,578 $ 46,965 $ 31,767 $ 148,392 Construction, Commercial Commercial Land and Mortgages Mortgages Commercial Land (Non-Owner (Owner and As of December 31, 2015 Development Farmland Occupied) Occupied) Industrial Total Grade: Pass $ 34,692 $ 1,030 $ 24,258 $ 33,023 $ 29,383 $ 122,386 Watch 5,337 — 4,564 4,968 5,202 20,071 Special mention 1,119 — — 2,687 148 3,954 Substandard 981 — 264 3,278 371 4,894 Doubtful — — — — — — Total $ 42,129 $ 1,030 $ 29,086 $ 43,956 $ 35,104 $ 151,305 Loans not assigned internal risk rating grades are comprised of smaller residential mortgages and smaller consumer loans. Payment activity of these loans is reviewed monthly by management. However, some of these loans are graded when the borrower’s total exposure to the Bank exceeds the limits noted above. Loans are considered to be nonperforming when they are delinquent by 90 days or more or non-accruing and credit risk is primarily evaluated by delinquency status, as shown in the table below. Residential (Dollars in thousands) Residential Revolving As of June 30, 2016 First and Junior Consumer PAYMENT ACTIVITY STATUS Mortgages (1) Mortgages (2) Loans (3) Total Performing $ 170,114 $ 25,810 $ 3,755 $ 199,679 Nonperforming 2,666 177 35 2,878 Total $ 172,780 $ 25,987 $ 3,790 $ 202,557 Residential Residential Revolving As of December 31, 2015 First and Junior Consumer PAYMENT ACTIVITY STATUS Mortgages (4) Mortgages (5) Loans (6) Total Performing $ 161,564 $ 26,220 $ 4,996 $ 192,780 Nonperforming 2,841 277 19 3,137 Total $ 164,405 $ 26,497 $ 5,015 $ 195,917 (1) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.6 million as of June 30, 2016. (2) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $1.2 million as of June 30, 2016. (3) Consumer Loans which have been assigned a risk rating grade of Substandard totaled $16 thousand as of June 30, 2016. (4) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.9 million as of December 31, 2015. (5) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $372 thousand as of December 31, 2015. (6) No Consumer Loans had been assigned a risk rating grade of Substandard as of December 31, 2015. Impaired Loans The following tables show the Company’s recorded investment and the customers’ unpaid principal balances for impaired loans, with the associated allowance amount, if applicable, as of June 30, 2016 and December 31, 2015, along with the average recorded investment and interest income recognized for the three and six months ended June 30, 2016 and 2015, respectively. (Dollars in thousands) At June 30, 2016 At December 31, 2015 IMPAIRED LOANS Recorded Customers’ Unpaid Related Recorded Customers’ Unpaid Related With no related allowance: Construction, land and land development $ 1,533 $ 1,540 $ — $ 445 $ 451 $ — Residential First Mortgages 2,736 2,761 — 3,130 3,166 — Residential Revolving and Junior Mortgages (1) 991 992 — 233 233 — Commercial Mortgages (Non-owner occupied) 248 248 — 264 264 — Commercial Mortgages (Owner occupied) 1,389 1,433 — 1,352 1,390 — Commercial and Industrial — — — — — — 6,897 6,974 — 5,424 5,504 — With an allowance recorded: Construction, land and land development 253 288 110 262 290 120 Residential First Mortgages 2,238 2,242 170 2,507 2,507 308 Residential Revolving and Junior Mortgages (1) 195 196 151 258 259 150 Commercial Mortgages (Non-owner occupied) — — — — — — Commercial Mortgages (Owner occupied) 1,458 1,520 133 2,091 2,348 678 Commercial and Industrial 92 92 92 284 285 278 4,236 4,338 656 5,402 5,689 1,534 Total Impaired Loans: Construction, land and land development 1,786 1,828 110 707 741 120 Residential First Mortgages 4,974 5,003 170 5,637 5,673 308 Residential Revolving and Junior Mortgages (1) 1,186 1,188 151 491 492 150 Commercial Mortgages (Non-owner occupied) 248 248 — 264 264 — Commercial Mortgages (Owner occupied) 2,847 2,953 133 3,443 3,738 678 Commercial and Industrial 92 92 92 284 285 278 $ 11,133 $ 11,312 $ 656 $ 10,826 $ 11,193 $ 1,534 (1) Junior mortgages include equity lines. For the three months ended For the six months ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized Investment Recognized Investment Recognized With no related allowance: Construction, land and land development $ 1,535 $ 14 $ 449 $ — $ 1,172 $ 27 $ 449 $ — Residential First Mortgages 2,728 (2 ) 1,761 18 2,231 14 1,696 36 Residential Revolving and Junior Mortgages (1) 988 8 50 1 675 19 50 2 Commercial Mortgages (Non-owner occupied) 248 4 786 14 253 8 612 18 Commercial Mortgages (Owner occupied) 1,393 1 1,552 18 1,190 17 1,429 27 Commercial and Industrial — — — — — — — — Consumer (2) — — 4 — — — 4 — 6,892 25 4,602 51 5,521 85 4,240 83 With an allowance recorded: Construction, land and land development 255 1 272 1 257 2 274 2 Residential First Mortgages 2,370 21 2,160 26 2,416 42 2,164 52 Residential Revolving and Junior Mortgages (1) 196 2 173 2 195 4 173 4 Commercial Mortgages (Non-owner occupied) — — — — — — — — Commercial Mortgages (Owner occupied) 1,460 6 1,026 8 1,462 11 919 12 Commercial and Industrial 105 1 123 — 109 1 82 — Consumer (2) — — — — — — — — 4,386 31 3,754 37 4,439 60 3,612 70 Total Construction, land and land development 1,790 15 721 1 1,429 29 723 2 Residential First Mortgages 5,098 19 3,921 44 4,647 56 3,860 88 Residential Revolving and Junior Mortgages (1) 1,184 10 223 3 870 23 223 6 Commercial Mortgages (Non-owner occupied) 248 4 786 14 253 8 612 18 Commercial Mortgages (Owner occupied) 2,853 7 2,578 26 2,652 28 2,348 39 Commercial and Industrial 105 1 123 — 109 1 82 — Consumer (2) — — 4 — — — 4 — $ 11,278 $ 56 $ 8,356 $ 88 $ 9,960 $ 145 $ 7,852 $ 153 (1) Junior mortgages include equity lines. (2) Includes credit cards. Smaller non-accruing loans and non-accruing loans that are not graded because they are included in homogenous pools generally do not meet the criteria for impairment testing, and are therefore excluded from impaired loan disclosures. At June 30, 2016 and December 31, 2015, non-accruing loans excluded from impaired loan disclosure totaled $108 thousand and $95 thousand, respectively. If interest on these non-accruing loans had been accrued, such income would have approximated $2 thousand and $4 thousand during the three months ended June 30, 2016 and 2015, respectively and $3 thousand and $8 thousand during the six months ended June 30, 2016 and 2015, respectively. Loan Modifications Loans modified as TDRs are considered impaired and are individually evaluated for the amount of impairment in the ALL. The following table presents, by segments of loans, information related to loans modified as TDRs during the three and six months ended June 30, 2016 and 2015. For the three months ended For the three months ended June 30, 2016 June 30, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification (Dollars in thousands) Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded TROUBLED DEBT RESTRUCTURINGS Loans Investment Investment Loans Investment Investment Residential first mortgages (1) 1 $ 244 $ 244 — $ — $ — (1) Modification was a capitalization of interest. For the six months ended For the six months ended June 30, 2016 June 30, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification (Dollars in thousands) Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded TROUBLED DEBT RESTRUCTURINGS Loans Investment Investment Loans Investment Investment Residential first mortgages (1) 1 $ 244 $ 244 — $ — $ — Commercial mortgage (Owner occupied) (1) — — — 1 105 124 (1) Modification was a capitalization of interest. For the three months ended For the three months ended (Dollars in thousands) June 30, 2016 June 30, 2015 TROUBLED DEBT RESTRUCTURINGS Number of Recorded Number of Recorded THAT SUBSEQUENTLY DEFAULTED Loans Investment Loans Investment Commercial and industrial — $ — — $ — For the six months ended For the six months ended (Dollars in thousands) June 30, 2016 June 30, 2015 TROUBLED DEBT RESTRUCTURINGS Number of Recorded Number of Recorded THAT SUBSEQUENTLY DEFAULTED Loans Investment Loans Investment Commercial mortgage (Owner occupied) — $ — 1 $ 124 Other Real Estate Owned The table below details the properties included in other real estate owned (“OREO”) as of June 30, 2016 and December 31, 2015. There were no collateralized consumer residential mortgage loans in the process of foreclosure as of June 30, 2016. As of June 30, 2016 As of December 31, 2015 No. of Carrying No. of Carrying (Dollars in thousands) Properties Value Properties Value Residential 3 $ 1,172 3 $ 540 Land lots 7 413 7 413 Convenience stores 1 59 2 191 Restaurant 1 55 1 55 Commerical properties 3 942 3 671 Total 15 $ 2,641 16 $ 1,870 Included in other assets as of June 30, 2016, was one residential property purchased in 2013 from a related party with a value of $708 thousand and a former branch, which was closed April 30, 2015, with a value of $403 thousand. Both properties are being marketed for sale. |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings per share | Note 7: Earnings per share The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of dilutive potential common stock. For the three months ended For the six months ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Average Per share Average Per share Average Per share Average Per share Shares Amount Shares Amount Shares Amount Shares Amount Basic earnings per share 4,774,856 $ 0.12 4,802,032 $ 0.06 4,774,856 $ 0.23 4,805,922 $ 0.14 Effect of dilutive securities: Stock options 19,927 17,290 17,718 13,565 Diluted earnings per share 4,794,783 $ 0.12 4,819,322 $ 0.06 4,792,574 $ 0.23 4,819,487 $ 0.14 For the three months ended June 30, 2016 and 2015, options on 46,135 and 54,733 shares, respectively, were not included in computing diluted earnings per share because their effects were anti-dilutive. For the six months ended June 30, 2016 and 2015, options on 53,635 and 68,473 shares, respectively, were not included in computing diluted earnings per share because their effects were anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Stock-Based Compensation | Note 8: Stock-Based Compensation On June 28, 2013, the Company registered with the Securities and Exchange Commission a stock-based compensation plan, which superseded all other plans. There are 342,000 shares available for grant under this plan at June 30, 2016. Stock-based compensation expense related to stock awards for both the three month periods ended June 30, 2016 and 2015 was zero. For the six months ended June 30, 2016 and 2015, stock-based compensation expense related to stock awards was $16 thousand and $17 thousand, respectively. Compensation expense for stock options is the estimated fair value of options on the date granted using the Black-Scholes Model amortized on a straight-line basis over the vesting period of the award. There was no unrecognized compensation expense related to stock options as of June 30, 2016. Options for a total of 7,500 shares were granted and vested during the six months ended June 30, 2016. The aggregate fair value of options granted during the six months ended June 30, 2016 was $16 thousand. Options for a total of 7,500 shares were granted and vested during the six months ended June 30, 2015. The aggregate fair value of options granted during the six months ended June 30, 2015 was $17 thousand. The variables used in these calculations of the fair value of the options are as follows: For the six months ended June 30, 2016 2015 Risk free interest rate (5 year Treasury) 1.49 % 1.52 % Expected dividend yield 0.0 % 0.0 % Expected term (years) 5 5 Expected volatility 40.1 % 47.1 % Stock option activity for the six months ended June 30, 2016 is summarized below: Weighted Average Weighted Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life (in years) Value (1) Options outstanding, January 1, 2016 211,185 $ 6.57 6.0 Granted 7,500 5.76 Forfeited — — Exercised — — Expired (8,598 ) 12.84 Options outstanding and exercisable, June 30, 2016 210,087 $ 6.54 5.9 $ 113,544 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on June 30, 2016. This amount changes based on changes in the market value of the Company’s common stock. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2016 | |
Employee Benefit Plans | Note 9: Employee Benefit Plans The Company has a non-contributory, defined benefit pension plan for full-time employees who were over 21 years of age and vested in the plan as of December 31, 2012, when the plan was frozen. Each participant’s account balance grows based on monthly interest credits. The Company funds pension costs in accordance with the funding provisions of the Employee Retirement Income Security Act. The Company sponsors a post-retirement benefit plan covering current and future retirees who acquire age 55 and 10 years of service or age 65 and 5 years of service. The post-retirement benefit plan provides coverage toward a retiree’s eligible medical and life insurance benefits expenses. The plan is unfunded and funded as benefits are due. Components of Net Periodic (Benefit) Cost (Dollars in thousands) Pension Benefits Post-Retirement Benefits Six months ended June 30, 2016 2015 2016 2015 Service cost $ — $ — $ 11 $ 11 Interest cost 69 66 14 15 Expected return on plan assets (96 ) (99 ) — — Amortization of unrecognized net loss — — — — Recognized net actuarial loss 39 37 — — Net periodic cost $ 12 $ 4 $ 25 $ 26 The Company expects to make no contribution to its pension plan and $3 thousand to its post-retirement benefit plan during the remainder of 2016. The Company has contributed $4 thousand towards the post-retirement plan during the first six months of 2016. |
Long Term Debt
Long Term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Long Term Debt | Note 10: Long Term Debt FHLB Debt As of June 30, 2016, the Bank had $30 million of outstanding FHLB debt, consisting of five advances. As of December 31, 2015, seven advances totaling $40 million were outstanding. Advances for $5 million each that matured in February 2016 and April 2016 were repaid. The five advances are shown in the following table. Current Maturity Description Balance Originated Interest Rate Date Adjustable Rate Hybrid $ 10,000,000 4/12/2013 3.00985 % 4/13/2020 Adjustable Rate Credit 5,000,000 6/18/2015 0.66660 % 9/19/2016 Fixed Rate Credit 5,000,000 10/20/2015 0.52000 % 10/20/2016 Fixed Rate Credit 5,000,000 12/21/2015 0.99000 % 6/15/2017 Fixed Rate Credit 5,000,000 12/22/2015 1.08000 % 9/15/2017 $ 30,000,000 Advances on the FHLB lines are secured by a blanket lien on qualified 1 to 4 family residential real estate loans. Immediate available credit, as of June 30, 2016, was $52.5 million against a total line of credit of $88.5 million. As of June 30, 2016 and December 31, 2015, the Company had $30.0 million and $40.0 million, respectively, in FHLB debt outstanding with a weighted average interest rate of 1.55% and 1.17%, respectively. Subordinated Debt On May 28, 2015, the Company entered into a Subordinated Note Purchase Agreement (the “Purchase Agreement”) with 29 accredited investors under which the Company issued an aggregate of $7,000,000 of subordinated notes (the “Notes”) to the accredited investors. The Notes have a maturity date of May 28, 2025. The Notes bear interest, payable on the 1st of March and September of each year, commencing September 1, 2015, at a fixed interest rate of 6.50% per year. The Notes are not convertible into common stock or preferred stock, and are not callable by the holders. The Company has the right to redeem the Notes, in whole or in part, without premium or penalty, at any interest payment date on or after May 28, 2020 and prior to the maturity date, but in all cases in a principal amount with integral multiples of $1,000, plus interest accrued and unpaid through the date of redemption. If an event of default occurs, such as the bankruptcy of the Company, the holder of a Note may declare the principal amount of the Note to be due and immediately payable. The Notes are unsecured, subordinated obligations of the Company and will rank junior in right of payment to the Company’s existing and future senior indebtedness. The Notes qualify as Tier 2 capital for regulatory reporting. (Dollars in thousands) Balance as of June 30, 2016 6.5% Subordinated Debt $ 7,000 Less: Issuance costs (148 ) $ 6,852 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements | Note 11: Fair Value Measurements The Company uses fair value to record certain assets and liabilities and to determine fair value disclosures. Authoritative accounting guidance clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Authoritative accounting guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy based on these two types of inputs are as follows: Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 – Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: Securities available-for-sale Defined benefit plan assets Mortgage servicing rights The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015: (Dollars in thousands) Fair Value Measurements at June 30, 2016 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 6,453 $ — $ 1,000 $ 5,453 U. S. Government agencies 23,811 2,202 21,609 — State and municipal obligations 23,748 — 23,748 — Total securities available-for-sale: $ 54,012 $ 2,202 $ 46,357 $ 5,453 Mortgage servicing rights $ 620 $ — $ — $ 620 Defined benefit plan assets: Cash and cash equivalents $ 3 $ 3 $ — $ — Mutual funds - fixed income 1,053 1,053 — — Mutual funds - equity 1,549 1,549 — — Total defined benefit plan assets $ 2,605 $ 2,605 $ — $ — Fair Value Measurements at December 31, 2015 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 3,945 $ — $ — $ 3,945 U. S. Government agencies 21,288 1,216 20,072 — State and municipal obligations 28,857 — 28,857 — Total securities available-for-sale: $ 54,090 $ 1,216 $ 48,929 $ 3,945 Mortgage servicing rights $ 658 $ — $ — $ 658 Defined benefit plan assets: Cash and cash equivalents $ 3 $ 3 $ — $ — Mutual funds - fixed income 1,119 1,119 — — Mutual funds - equity 1,684 1,684 — — Total defined benefit plan assets $ 2,806 $ 2,806 $ — $ — The reconciliation of items using Level 3 inputs is as follows: Corporate (Dollars in thousands) MSRs Bonds Balance, January 1, 2016 $ 658 $ 3,945 Purchases — 2,500 Impairments — — Fair value adjustments (38 ) 8 Sales — — Balance, June 30, 2016 $ 620 $ 6,453 Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Impaired Loans: Other Real Estate Owned: The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at the end of the respective period. Fair Value Measurements at June 30, 2016 Using (Dollars in thousands) Balance as of Description June 30, 2016 Level 1 Level 2 Level 3 Impaired Loans, net $ 3,580 $ — $ — $ 3,580 Other real estate owned, net 2,641 — — 2,641 Fair Value Measurements at December 31, 2015 Using Balance as of Description December 31, 2015 Level 1 Level 2 Level 3 Impaired Loans, net $ 3,868 $ — $ — $ 3,868 Other real estate owned, net 1,870 — — 1,870 The following table displays quantitative information about Level 3 Fair Value Measurements as of June 30, 2016: Range Balance as of Valuation Unobservable (Weighted (Dollars in thousands) June 30, 2016 Technique Input Average) Impaired Loans, net $ 3,580 Discounted appraised value Selling Cost 10% - 20% (11% ) Lack of Marketability 50% (50% ) Other real estate owned, net 2,641 Discounted appraised value Selling Cost 3% - 13 (5% ) Lack of Marketability 10% - 20% (11% ) The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2015: Range Balance as of Valuation Unobservable (Weighted (Dollars in thousands) December 31, 2015 Technique Input Average) Impaired Loans, net $ 3,868 Discounted appraised value Selling Cost 10% - 25% (13% ) Lack of Marketability 50% - 60% (51% ) Other real estate owned, net 1,870 Discounted appraised value Selling Cost 3% - 13% (4% ) Lack of Marketability 10% - 20% (12% ) The estimated fair values of financial instruments are shown in the following table. The carrying amounts in the table are included in the balance sheet under the applicable captions. Fair Value Measurements at June 30, 2016 Using (Dollars in thousands) Balance as of Fair Value as of Description June 30, 2016 June 30, 2016 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 5,141 $ 5,141 $ 5,141 $ — $ — Interest-bearing deposits 20,050 20,050 20,050 — — Certificates of deposit 5,456 5,456 — 5,456 — Federal funds sold 1,546 1,546 1,546 — — Securities available-for-sale 54,012 54,012 2,202 46,357 5,453 Restricted securities 2,422 2,422 — — 2,422 Loans, net 347,755 356,898 — — 356,898 Loans held for sale 2,425 2,553 1,301 — 1,252 Accrued interest receivable 1,270 1,270 — 1,270 — Mortgage servicing rights 620 620 — — 620 Financial Liabilities: Non-interest-bearing liabilities $ 74,157 $ 74,157 $ 74,157 $ — $ — Savings and other interest-bearing deposits 177,075 177,075 — 177,075 — Time deposits 127,797 129,326 — — 129,326 Securities sold under repurchase agreements 8,182 8,182 — 8,182 — FHLB advances 30,000 30,813 — 30,813 — Subordinated debt 6,852 7,000 — — 7,000 Accrued interest payable 331 331 — 331 — Fair Value Measurements at December (Dollars in thousands) Balance as of Fair Value as of Description December 31, 2015 December 31, 2015 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 4,969 $ 4,969 $ 4,969 $ — $ — Interest-bearing deposits 15,330 15,330 15,330 — — Certificates of deposit 5,735 5,735 — 5,487 248 Federal funds sold 271 271 271 — — Securities available-for-sale 54,090 54,090 1,216 48,929 3,945 Restricted securities 2,731 2,731 — — 2,731 Loans, net 343,323 347,500 — — 347,500 Loans held for sale 270 270 — — 270 Accrued interest receivable 1,318 1,318 — 1,318 — Mortgage servicing rights 658 658 — — 658 Financial Liabilities: Non-interest-bearing liabilities $ 65,842 $ 65,842 $ 65,842 $ — $ — Savings and other interest-bearing deposits 166,628 166,628 — 166,628 — Time deposits 127,388 127,433 — — 127,433 Securities sold under repurchase agreements 7,161 7,161 — 7,161 — FHLB advances 40,000 40,855 — 40,855 — Subordinated debt 6,844 7,000 — — 7,000 Accrued interest payable 318 318 — 318 — The carrying amounts of cash and due from banks, interest-bearing deposits, federal funds sold or purchased, accrued interest receivable, loans held for sale and non-interest-bearing deposits, are payable on demand, or are of such short duration that carrying value approximates market value. Securities available-for-sale are carried at quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. The carrying value of restricted securities approximates fair value based on the redemption provisions of the issuer. MSRs are carried at fair value. As described above, a valuation model is used to determine fair value. This model utilizes a discounted cash flow analysis with servicing costs and prepayment assumptions based on comparable instruments and a discount rate. The fair value of performing loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar remaining maturities. This calculation ignores loan fees and certain factors affecting the interest rates charged on various loans such as the borrower’s creditworthiness and compensating balances and dissimilar types of real estate held as collateral. The fair value of impaired loans is measured as described within the Impaired Loans section of this note. The fair value of loans does not consider the lack of liquidity and uncertainty in the market that would affect the valuation. In the second quarter of 2016, VISA loans were transferred from Level 3 to Level 1 as they were held for sale as of June 30, 2016, having received a firm purchase offer from a third party. This sale was completed in July 2016. Time deposits are presented at estimated fair value by discounting the future cash flows using interest rates offered for deposits of similar remaining maturities. The fair value of the Company’s subordinated debt is estimated by utilizing observable market prices for comparable securities. Qualitative factors like asset quality, market factors and liquidity are also considered. The fair value of the FHLB advances is estimated by discounting the future cash flows using the current interest rates offered for similar advances. The fair value of commitments to extend credit is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present credit worthiness of the counter parties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of standby letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counter parties at the reporting date. At June 30, 2016 and December 31, 2015, the fair value of loan commitments and standby letters of credit was immaterial and therefore, they are not included in the table above. The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair value of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2016 | |
Changes in Accumulated Other Comprehensive Income (Loss) | Note 12: Changes in Accumulated Other Comprehensive Income (Loss) The balances in accumulated other comprehensive income (loss) are shown in the following tables: For the Three Months Ended June 30, 2016 Net Unrealized Pension and Accumulated Other Gains (Losses) Post-retirement Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance April 1, 2016 $ 438 $ (883 ) $ (445 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $130 255 — 255 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $35 (69 ) — (69 ) Balance June 30, 2016 $ 624 $ (883 ) $ (259 ) For the Three Months Ended June 30, 2015 Net Unrealized Pension and Accumulated Other Gains (Losses) Post-retirement Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance April 1, 2015 $ 246 $ (966 ) $ (720 ) Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $192 (372 ) — (372 ) Reclassification for previously unrealized net gains recognized in income, net of tax expense of $2 (4 ) — (4 ) Balance June 30, 2015 $ (130 ) $ (966 ) $ (1,096 ) For the Six Months Ended June 30, 2016 Net Unrealized Pension and Accumulated Other Gains (Losses) Post-retirement Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance January 1, 2016 $ 107 $ (883 ) $ (776 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $303 590 — 590 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $37 (73 ) — (73 ) Balance June 30, 2016 $ 624 $ (883 ) $ (259 ) For the Six Months Ended June 30, 2015 Net Unrealized Pension and Accumulated Other Gains (Losses) Post-retirement Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance January 1, 2015 $ 45 $ (966 ) $ (921 ) Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $90 (174 ) — (174 ) Reclassification for previously unrealized net gains recognized in income, net of tax expense of $1 (1 ) — (1 ) Balance June 30, 2015 $ (130 ) $ (966 ) $ (1,096 ) Reclassification for previously unrealized gains (losses) and impairments on securities are reported in the Consolidated Statements of Income as follows. No unrealized gains (losses) on pension and post-employment related costs were reclassified to the Consolidated Statements of Income in the three and six months ended June 30, 2016 and 2015. Accumulated Other Comprehensive Income (Loss) Reclassification for the Three Months Ended Holding Losses on Securities (Dollars in thousands) June 30, 2016 June 30, 2015 Net gains on sale of securities available-for-securities $ 104 $ 6 Tax expense (35 ) (2 ) Impact on net income $ 69 $ 4 Accumulated Other Comprehensive Income (Loss) Reclassification for the Six Months Ended Holding Losses on Securities (Dollars in thousands) June 30, 2016 June 30, 2015 Net gains on sale of securities available-for-securities $ 110 $ 2 Tax expense (37 ) (1 ) Impact on net income $ 73 $ 1 |
Significant Accounting Polici20
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Certificates of Deposit | Certificates of Deposit Prior to January 1, 2016, the Company included its investments in certificates of deposit on the consolidated balance sheets in securities available-for sale, at fair value. Effective January 1, 2016, the Company is presenting certificates of deposit separately on the consolidated balance sheets and removing them from the available-for-sale category. As of December 31, 2015, the unrealized gain related to the certificates of deposit included in securities available-for-sale was $31 thousand and the tax effected unrealized gain included in accumulated other comprehensive income was $20 thousand. The unrealized gain and related impact were reversed the first quarter of 2016. |
Loans | Loans The Company grants mortgage loans on real estate, commercial and industrial loans and consumer and other loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans on real estate. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the Company’s market areas. Loans are reported at their recorded investment, which is the outstanding principal balance net of any unearned income, such as deferred fees and costs, and charge-offs. Interest on loans is recognized over the term of the loan and is calculated using the interest method on principal amounts outstanding. Loan origination fees and certain direct origination costs are deferred and recognized as an adjustment of the related loan yield over the contractual term of the loan, adjusted for early pay-offs, where applicable. The accrual of interest is generally discontinued at the time a loan is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Payments received for loans no longer accruing interest are applied to the unpaid principal balance. Loans greater than 90 days past due may remain on accrual status if the credit is well-secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than 180 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are charged off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual and past due policies are materially the same for all types of loans. All interest accrued but not collected for loans that are placed on non-accrual or charged off are reversed against interest income. Any interest received on these loans is accounted for on the cash basis or cost recovery method until qualifying for return to accrual. Generally, a loan is returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or it becomes well secured and in the process of collection. |
Allowance for loan losses ("ALL") | Allowance for loan losses (“ALL”) The ALL reflects management’s judgment of probable loan losses inherent in the portfolio at the balance sheet date. Management uses a disciplined process and methodology to establish the ALL each quarter. To determine the total ALL, the Company estimates the reserves needed for each homogenous segment of the portfolio, plus any loans analyzed individually for impairment. Considerations include historical experience, the nature and volume of the loan portfolio, adverse situations that may affect a borrower’s ability to repay, estimated value of any underlying collateral, prevailing local and national economic conditions, and internal policies and procedures including credit risk management and underwriting. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as conditions change. Management employs a risk rating system to evaluate and consistently categorize loan portfolio credit risk. Loans assigned risk rating grades include all commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which are impaired, loans to real estate developers and contractors, consumer loans greater than $250 thousand with chronic delinquency, and troubled debt restructures (“TDRs”). The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades are evaluated as new information becomes available for each borrowing relationship or at least quarterly. All other loans not specifically assigned a risk rating grade are monitored as a discrete pool of loans generally based on delinquency status. Risk rating categories are as follows: Pass Watch Special Mention Substandard Doubtful Loss The ALL consists of specific, general, and unallocated components. The specific component is determined by identifying impaired loans (as described below) then evaluating each one to calculate the amount of impairment. Impaired loans measured for impairment generally include: (1) non-accruing Special mention, Substandard and Doubtful loans in excess of $250,000; (2) Substandard and Doubtful loans in excess of $500,000; (3) Special Mention loans in excess of $500,000 if any of the loans in the relationship are more than 30 days past due or if the borrower has filed for bankruptcy; and (4) all TDRs. A specific allowance arises when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component collectively evaluates smaller commercial loans, residential mortgages and consumer loans, grouped into segments and classes. Historical loss experience is calculated and applied to each segment or class, then adjusted for qualitative factors. Qualitative factors include changes in the local and national economic outlook, including unemployment, interest rates, inflation rates and real estate trends; the level and trend of past due and nonaccrual loans; strength of policies and procedures; and oversight of credit risk and quality of underwriting. These qualitative adjustments reflect management’s judgment of risks inherent in the segments. An unallocated component is maintained if needed to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Changes in the allowance for loan losses and the related provision expense can materially affect net income. The specific component of the ALL calculation accounts for the loan loss reserve necessary on impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not considered impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Accrual of interest may or may not be discontinued for any given impaired loan. Impairment is measured by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Because large groups of smaller balance homogeneous loans are collectively evaluated for impairment, the Company does not generally separately identify smaller balance individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. The general component of the ALL calculation collectively evaluates groups of loans in segments or classes, as noted above. The segments are: (1) Mortgage loans on real estate; (2) Commercial and industrial loans; and (3) Consumer and other loans. The segment for Mortgage loans on real estate is disaggregated into the following classes: (1) Construction, land and land development; (2) Farmland; (3) Residential first mortgages; (4) Residential revolving and junior mortgages; (5) Commercial mortgages (non-owner-occupied); and (6) Commercial mortgages (owner-occupied). Loans in segment 1 are secured by real estate. Loans in segments 2 and 3 are secured by other types of collateral or are unsecured. A given segment or class may not reflect the purpose of a loan. For example, a business owner may provide his residence as collateral for a loan to his company, in which case the loan would be grouped in a residential mortgage class. Historical loss factors are calculated for the prior 19 quarters by segment and class, and then applied to the current balances in each segment and class. Finally, qualitative factors are applied to each segment and class. Construction and development loans carry risks that the project will not be finished according to schedule or according to budget and the value of the collateral, at any point in time, may be less than the principal amount of the loan. These loans also bear the risk that the general contractor may face financial pressure unrelated to the project. Loans secured by land, farmland and residential mortgages carry the risk of continued credit-worthiness of the borrower and changes in value of the underlying real estate collateral. Commercial mortgages and commercial and industrial loans carry risks associated with the profitable operation of a business and its related cash flows. Additionally, commercial and industrial loans carry risks associated with the value of collateral other than real estate which may depreciate over time. Consumer loans carry risks associated with the continuing credit-worthiness of the borrower and are more likely than real estate loans to be adversely affected by divorce, unemployment, personal illness or bankruptcy of an individual. Consumer loans secured by automobiles carry risks associated with rapidly depreciating collateral. Consumer loans include credit cards, which are unsecured. The summation of the specific, general and unallocated components results in the total estimated ALL. Management may also include an unallocated component to cover uncertainties in the level of probable losses. This estimate is inherently subjective and actual losses could be greater or less than the estimates. Additions to the ALL are made by charges to earnings through the provision for loan losses. Charge-offs result from credit exposures deemed to be uncollectible and the ALL is reduced by these. Recoveries of previously charged off amounts are credited back to the ALL. Charge-off policies are materially the same for all types of loans. |
Mortgage servicing rights ("MSRs") | Mortgage servicing rights (“MSRs”) MSRs are included on the consolidated balance sheet and recorded at fair value on an ongoing basis. Changes in the fair value of the MSRs are recorded in the results of operations. A fair value analysis of MSRs is performed on a quarterly basis. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Aggregate Amortized Cost and Fair Values of Available-for-Sale Securities Portfolio | The aggregate amortized costs and fair values of the available-for-sale securities portfolio are as follows: (Dollars in thousands) Available-for-sale securities June 30, 2016 Amortized Gross Gross Fair Corporate bonds $ 6,445 $ 8 $ — $ 6,453 U.S. Government agencies 23,626 201 (16 ) 23,811 State and municipal obligations 22,966 782 — 23,748 $ 53,037 $ 991 $ (16 ) $ 54,012 Available-for-sale securities December 31, 2015 Amortized Gross Gross Fair Corporate bonds $ 3,950 $ — $ (5 ) $ 3,945 U.S. Government agencies 21,375 69 (156 ) 21,288 State and municipal obligations 28,599 313 (55 ) 28,857 $ 53,924 $ 382 $ (216 ) $ 54,090 |
Gross Realized Gains and Gross Realized Losses on Sales of Securities | Gross realized gains and gross realized losses on sales and calls of securities were as follows: For the three months ended For the six months ended June 30, June 30, (Dollars in thousands) 2016 2015 2016 2015 Gross realized gains $ 105 $ 24 $ 120 $ 24 Gross realized losses (1 ) (18 ) (10 ) (22 ) Net realized gains (losses) $ 104 $ 6 $ 110 $ 2 Aggregate proceeds $ 6,395 $ 1,710 $ 9,097 $ 2,324 |
Unrealized Loss Positions | Bonds with unrealized loss positions at December 31, 2015 included 24 federal agencies, one corporate bond and 17 municipals. The tables are shown below. (Dollars in thousands) Less than 12 months 12 months or more Total June 30, 2016 Fair Unrealized Fair Unrealized Fair Unrealized Temporarily impaired securities - U.S. Government agencies $ 901 $ (2 ) $ 1,455 $ (14 ) $ 2,356 $ (16 ) Less than 12 months 12 months or more Total December 31, 2015 Fair Unrealized Fair Unrealized Fair Unrealized Corporate bonds $ 495 $ (5 ) $ — $ — $ 495 $ (5 ) U.S. Government agencies 13,871 (141 ) 1,619 (15 ) 15,490 (156 ) States and municipal obligations 2,566 (17 ) 3,281 (38 ) 5,847 (55 ) Total temporarily impaired securities $ 16,932 $ (163 ) $ 4,900 $ (53 ) $ 21,832 $ (216 ) |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Summary of Balances of Loans | The following is a summary of the balances of loans: (Dollars in thousands) June 30, December 31, Mortgage loans on real estate: Construction, Land and Land Development $ 39,044 $ 42,129 Farmland 1,038 1,030 Commercial Mortgages (Non-Owner Occupied) 29,578 29,086 Commercial Mortgages (Owner Occupied) 46,965 43,956 Residential First Mortgages 172,780 164,405 Residential Revolving and Junior Mortgages 25,987 26,497 Commercial and Industrial loans 31,767 35,104 Consumer Loans 3,790 5,015 Total loans 350,949 347,222 Net unamortized deferred loan costs 353 324 Allowance for loan losses (3,547 ) (4,223 ) Loans, net $ 347,755 $ 343,323 |
Recorded Investment in Past Due and Non-accruing Loans | The recorded investment in past due and non-accruing loans is shown in the following table. A loan past due by more than 90 days is generally placed on nonaccrual unless it is both well secured and in the process of collection. 90 Days or (Dollars in thousands) 30-89 More Past Total Past Loans Past Due and Nonaccruals Days Due and Due and Total June 30, 2016 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Construction, Land and Land Development $ 63 $ — $ 632 $ 695 $ 38,349 $ 39,044 Farmland — — — — 1,038 1,038 Commercial Mortgages (Non-Owner Occupied) — — — — 29,578 29,578 Commercial Mortgages (Owner Occupied) 943 — 1,759 2,702 44,263 46,965 Residential First Mortgages 509 205 2,461 3,175 169,605 172,780 Residential Revolving and Junior Mortgages 51 — 177 228 25,759 25,987 Commercial and Industrial — — 94 94 31,673 31,767 Consumer Loans 19 11 24 54 3,736 3,790 Total $ 1,585 $ 216 $ 5,147 $ 6,948 $ 344,001 $ 350,949 90 Days or 30-89 More Past Total Past Loans Past Due and Nonaccruals Days Due and Due and Total December 31, 2015 Past Due Still Accruing Nonaccruals Nonaccruals Current Loans Construction, Land and Land Development $ 93 $ — $ 672 $ 765 $ 41,364 $ 42,129 Farmland — — — — 1,030 1,030 Commercial Mortgages (Non-Owner Occupied) 264 — — 264 28,822 29,086 Commercial Mortgages (Owner Occupied) 133 — 2,350 2,483 41,473 43,956 Residential First Mortgages 1,304 — 2,841 4,145 160,260 164,405 Residential Revolving and Junior Mortgages 70 — 277 347 26,150 26,497 Commercial and Industrial 10 — 285 295 34,809 35,104 Consumer Loans 32 11 8 51 4,964 5,015 Total $ 1,906 $ 11 $ 6,433 $ 8,350 $ 338,872 $ 347,222 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Loan Receivables Evaluated for Impairment Individually and Collectively by Segment | Loan receivables evaluated for impairment individually and collectively by segment as of June 30, 2016 and December 31, 2015 are as follows: Mortgage Commercial (Dollars in thousands) Loans and Consumer As of June 30, 2016 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 11,041 $ 92 $ — $ 11,133 Collectively evaluated for impairment 304,351 31,675 3,790 339,816 Total Gross Loans $ 315,392 $ 31,767 $ 3,790 $ 350,949 Mortgage Commercial Loans and Consumer As of December 31, 2015 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 10,542 $ 284 $ — $ 10,826 Collectively evaluated for impairment 296,561 34,820 5,015 336,396 Total Gross Loans $ 307,103 $ 35,104 $ 5,015 $ 347,222 |
Allowance for Loan Losses by Portfolio Segment | Allowance for Loan Losses The allowance for loan losses disaggregated based on loan receivables evaluated for impairment individually and collectively by segment as of June 30, 2016 and December 31, 2015 are as follows: Mortgage Commercial (Dollars in thousands) Loans and Consumer As of June 30, 2016 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 564 $ 92 $ — $ 656 Collectively evaluated for impairment 2,431 343 117 2,891 Total allowance for loan losses $ 2,995 $ 435 $ 117 $ 3,547 Mortgage Commercial Loans and Consumer As of December 31, 2015 on Real Estate Industrial Loans Total Individually evaluated for impairment $ 1,256 $ 278 $ — $ 1,534 Collectively evaluated for impairment 2,246 321 122 2,689 Total allowance for loan losses $ 3,502 $ 599 $ 122 $ 4,223 A disaggregation and an analysis of the change in the allowance for loan losses by segment is shown below. (Dollars in thousands) Mortgage Commercial For the Three Months Ended Loans on and Consumer June 30, 2016 Real Estate Industrial Loans Total ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 3,410 $ 579 $ 118 $ 4,107 (Charge-offs) (573 ) (158 ) (20 ) (751 ) Recoveries 4 — 4 8 Provision 154 14 15 183 Ending Balance $ 2,995 $ 435 $ 117 $ 3,547 Mortgage Commercial For the Three Months Ended Loans on and Consumer June 30, 2015 Real Estate Industrial Loans Total ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,763 $ 315 $ 169 $ 3,247 (Charge-offs) — — (54 ) (54 ) Recoveries 5 — 36 41 Provision 121 105 (21 ) 205 Ending Balance $ 2,889 $ 420 $ 130 $ 3,439 (Dollars in thousands) Mortgage Commercial For the Six Months Ended Loans on and Consumer June 30, 2016 Real Estate Industrial Loans Total ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 3,502 $ 599 $ 122 $ 4,223 (Charge-offs) (656 ) (158 ) (31 ) (845 ) Recoveries 10 5 6 21 Provision 139 (11 ) 20 148 Ending Balance $ 2,995 $ 435 $ 117 $ 3,547 Mortgage Commercial For the Six Months Ended Loans on and Consumer June 30, 2015 Real Estate Industrial Loans Total ALLOWANCE FOR LOAN LOSSES: Beginning Balance $ 2,778 $ 323 $ 104 $ 3,205 (Charge-offs) (1 ) — (86 ) (87 ) Recoveries 10 — 41 51 Provision 102 97 71 270 Ending Balance $ 2,889 $ 420 $ 130 $ 3,439 |
Internal Risk Rating Grades are Assigned to Commercial Loans Not Secured | Internal risk rating grades are generally assigned to commercial loans not secured by real estate, commercial mortgages, residential mortgages greater than $1 million, smaller residential mortgages which are impaired, loans to real estate developers and contractors, consumer loans greater than $250,000 with chronic delinquency, and TDRs, as shown in the following table. The grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. Risk grades (refer to Note 2) are evaluated as new information becomes available for each borrowing relationship or at least quarterly. Construction, Commercial Commercial Land and Mortgages Mortgages Commercial (Dollars in thousands) Land (Non-Owner (Owner and As of June 30, 2016 Development Farmland Occupied) Occupied) Industrial Total Grade: Pass $ 31,736 $ 1,038 $ 24,815 $ 34,255 $ 29,202 $ 121,046 Watch 5,280 — 4,240 8,561 2,183 20,264 Special mention — — 275 1,479 128 1,882 Substandard 2,028 — 248 2,670 254 5,200 Doubtful — — — — — — Total $ 39,044 $ 1,038 $ 29,578 $ 46,965 $ 31,767 $ 148,392 Construction, Commercial Commercial Land and Mortgages Mortgages Commercial Land (Non-Owner (Owner and As of December 31, 2015 Development Farmland Occupied) Occupied) Industrial Total Grade: Pass $ 34,692 $ 1,030 $ 24,258 $ 33,023 $ 29,383 $ 122,386 Watch 5,337 — 4,564 4,968 5,202 20,071 Special mention 1,119 — — 2,687 148 3,954 Substandard 981 — 264 3,278 371 4,894 Doubtful — — — — — — Total $ 42,129 $ 1,030 $ 29,086 $ 43,956 $ 35,104 $ 151,305 |
Performing and Non Performing Loans | Loans are considered to be nonperforming when they are delinquent by 90 days or more or non-accruing and credit risk is primarily evaluated by delinquency status, as shown in the table below. Residential (Dollars in thousands) Residential Revolving As of June 30, 2016 First and Junior Consumer PAYMENT ACTIVITY STATUS Mortgages (1) Mortgages (2) Loans (3) Total Performing $ 170,114 $ 25,810 $ 3,755 $ 199,679 Nonperforming 2,666 177 35 2,878 Total $ 172,780 $ 25,987 $ 3,790 $ 202,557 Residential Residential Revolving As of December 31, 2015 First and Junior Consumer PAYMENT ACTIVITY STATUS Mortgages (4) Mortgages (5) Loans (6) Total Performing $ 161,564 $ 26,220 $ 4,996 $ 192,780 Nonperforming 2,841 277 19 3,137 Total $ 164,405 $ 26,497 $ 5,015 $ 195,917 (1) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.6 million as of June 30, 2016. (2) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $1.2 million as of June 30, 2016. (3) Consumer Loans which have been assigned a risk rating grade of Substandard totaled $16 thousand as of June 30, 2016. (4) Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.9 million as of December 31, 2015. (5) Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $372 thousand as of December 31, 2015. (6) No Consumer Loans had been assigned a risk rating grade of Substandard as of December 31, 2015. |
Company's Recorded Investment and Customers Unpaid Principal Balances for Impaired Loans, with Associated Allowance Amount | The following tables show the Company’s recorded investment and the customers’ unpaid principal balances for impaired loans, with the associated allowance amount, if applicable, as of June 30, 2016 and December 31, 2015, along with the average recorded investment and interest income recognized for the three and six months ended June 30, 2016 and 2015, respectively. (Dollars in thousands) At June 30, 2016 At December 31, 2015 IMPAIRED LOANS Recorded Customers’ Unpaid Related Recorded Customers’ Unpaid Related With no related allowance: Construction, land and land development $ 1,533 $ 1,540 $ — $ 445 $ 451 $ — Residential First Mortgages 2,736 2,761 — 3,130 3,166 — Residential Revolving and Junior Mortgages (1) 991 992 — 233 233 — Commercial Mortgages (Non-owner occupied) 248 248 — 264 264 — Commercial Mortgages (Owner occupied) 1,389 1,433 — 1,352 1,390 — Commercial and Industrial — — — — — — 6,897 6,974 — 5,424 5,504 — With an allowance recorded: Construction, land and land development 253 288 110 262 290 120 Residential First Mortgages 2,238 2,242 170 2,507 2,507 308 Residential Revolving and Junior Mortgages (1) 195 196 151 258 259 150 Commercial Mortgages (Non-owner occupied) — — — — — — Commercial Mortgages (Owner occupied) 1,458 1,520 133 2,091 2,348 678 Commercial and Industrial 92 92 92 284 285 278 4,236 4,338 656 5,402 5,689 1,534 Total Impaired Loans: Construction, land and land development 1,786 1,828 110 707 741 120 Residential First Mortgages 4,974 5,003 170 5,637 5,673 308 Residential Revolving and Junior Mortgages (1) 1,186 1,188 151 491 492 150 Commercial Mortgages (Non-owner occupied) 248 248 — 264 264 — Commercial Mortgages (Owner occupied) 2,847 2,953 133 3,443 3,738 678 Commercial and Industrial 92 92 92 284 285 278 $ 11,133 $ 11,312 $ 656 $ 10,826 $ 11,193 $ 1,534 (1) Junior mortgages include equity lines. For the three months ended For the six months ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income (Dollars in thousands) Investment Recognized Investment Recognized Investment Recognized Investment Recognized With no related allowance: Construction, land and land development $ 1,535 $ 14 $ 449 $ — $ 1,172 $ 27 $ 449 $ — Residential First Mortgages 2,728 (2 ) 1,761 18 2,231 14 1,696 36 Residential Revolving and Junior Mortgages (1) 988 8 50 1 675 19 50 2 Commercial Mortgages (Non-owner occupied) 248 4 786 14 253 8 612 18 Commercial Mortgages (Owner occupied) 1,393 1 1,552 18 1,190 17 1,429 27 Commercial and Industrial — — — — — — — — Consumer (2) — — 4 — — — 4 — 6,892 25 4,602 51 5,521 85 4,240 83 With an allowance recorded: Construction, land and land development 255 1 272 1 257 2 274 2 Residential First Mortgages 2,370 21 2,160 26 2,416 42 2,164 52 Residential Revolving and Junior Mortgages (1) 196 2 173 2 195 4 173 4 Commercial Mortgages (Non-owner occupied) — — — — — — — — Commercial Mortgages (Owner occupied) 1,460 6 1,026 8 1,462 11 919 12 Commercial and Industrial 105 1 123 — 109 1 82 — Consumer (2) — — — — — — — — 4,386 31 3,754 37 4,439 60 3,612 70 Total Construction, land and land development 1,790 15 721 1 1,429 29 723 2 Residential First Mortgages 5,098 19 3,921 44 4,647 56 3,860 88 Residential Revolving and Junior Mortgages (1) 1,184 10 223 3 870 23 223 6 Commercial Mortgages (Non-owner occupied) 248 4 786 14 253 8 612 18 Commercial Mortgages (Owner occupied) 2,853 7 2,578 26 2,652 28 2,348 39 Commercial and Industrial 105 1 123 — 109 1 82 — Consumer (2) — — 4 — — — 4 — $ 11,278 $ 56 $ 8,356 $ 88 $ 9,960 $ 145 $ 7,852 $ 153 (1) Junior mortgages include equity lines. (2) Includes credit cards. |
Summary of Troubled Debt Restructurings | The following table presents, by segments of loans, information related to loans modified as TDRs during the three and six months ended June 30, 2016 and 2015. For the three months ended For the three months ended June 30, 2016 June 30, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification (Dollars in thousands) Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded TROUBLED DEBT RESTRUCTURINGS Loans Investment Investment Loans Investment Investment Residential first mortgages (1) 1 $ 244 $ 244 — $ — $ — (1) Modification was a capitalization of interest. For the six months ended For the six months ended June 30, 2016 June 30, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification (Dollars in thousands) Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded TROUBLED DEBT RESTRUCTURINGS Loans Investment Investment Loans Investment Investment Residential first mortgages (1) 1 $ 244 $ 244 — $ — $ — Commercial mortgage (Owner occupied) (1) — — — 1 105 124 (1) Modification was a capitalization of interest. For the three months ended For the three months ended (Dollars in thousands) June 30, 2016 June 30, 2015 TROUBLED DEBT RESTRUCTURINGS Number of Recorded Number of Recorded THAT SUBSEQUENTLY DEFAULTED Loans Investment Loans Investment Commercial and industrial — $ — — $ — For the six months ended For the six months ended (Dollars in thousands) June 30, 2016 June 30, 2015 TROUBLED DEBT RESTRUCTURINGS Number of Recorded Number of Recorded THAT SUBSEQUENTLY DEFAULTED Loans Investment Loans Investment Commercial mortgage (Owner occupied) — $ — 1 $ 124 |
Summary of Properties Included in Other Real Estate Owned (OREO) | The table below details the properties included in other real estate owned (“OREO”) as of June 30, 2016 and December 31, 2015. There were no collateralized consumer residential mortgage loans in the process of foreclosure as of June 30, 2016. As of June 30, 2016 As of December 31, 2015 No. of Carrying No. of Carrying (Dollars in thousands) Properties Value Properties Value Residential 3 $ 1,172 3 $ 540 Land lots 7 413 7 413 Convenience stores 1 59 2 191 Restaurant 1 55 1 55 Commerical properties 3 942 3 671 Total 15 $ 2,641 16 $ 1,870 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Weighted Average Number of Shares Used in Computing Earnings per Share | The following table shows the weighted average number of shares used in computing earnings per share and the effect on the weighted average number of shares of dilutive potential common stock. For the three months ended For the six months ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Average Per share Average Per share Average Per share Average Per share Shares Amount Shares Amount Shares Amount Shares Amount Basic earnings per share 4,774,856 $ 0.12 4,802,032 $ 0.06 4,774,856 $ 0.23 4,805,922 $ 0.14 Effect of dilutive securities: Stock options 19,927 17,290 17,718 13,565 Diluted earnings per share 4,794,783 $ 0.12 4,819,322 $ 0.06 4,792,574 $ 0.23 4,819,487 $ 0.14 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value of Options | The variables used in these calculations of the fair value of the options are as follows: For the six months ended June 30, 2016 2015 Risk free interest rate (5 year Treasury) 1.49 % 1.52 % Expected dividend yield 0.0 % 0.0 % Expected term (years) 5 5 Expected volatility 40.1 % 47.1 % |
Summary of Stock Option Activity | Stock option activity for the six months ended June 30, 2016 is summarized below: Weighted Average Weighted Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Life (in years) Value (1) Options outstanding, January 1, 2016 211,185 $ 6.57 6.0 Granted 7,500 5.76 Forfeited — — Exercised — — Expired (8,598 ) 12.84 Options outstanding and exercisable, June 30, 2016 210,087 $ 6.54 5.9 $ 113,544 (1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on June 30, 2016. This amount changes based on changes in the market value of the Company’s common stock. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Components of Net Periodic (Benefit) Cost | Components of Net Periodic (Benefit) Cost (Dollars in thousands) Pension Benefits Post-Retirement Benefits Six months ended June 30, 2016 2015 2016 2015 Service cost $ — $ — $ 11 $ 11 Interest cost 69 66 14 15 Expected return on plan assets (96 ) (99 ) — — Amortization of unrecognized net loss — — — — Recognized net actuarial loss 39 37 — — Net periodic cost $ 12 $ 4 $ 25 $ 26 |
Long Term Debt (Tables)
Long Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Advances of Long Term Debt | The five advances are shown in the following table. Current Maturity Description Balance Originated Interest Rate Date Adjustable Rate Hybrid $ 10,000,000 4/12/2013 3.00985 % 4/13/2020 Adjustable Rate Credit 5,000,000 6/18/2015 0.66660 % 9/19/2016 Fixed Rate Credit 5,000,000 10/20/2015 0.52000 % 10/20/2016 Fixed Rate Credit 5,000,000 12/21/2015 0.99000 % 6/15/2017 Fixed Rate Credit 5,000,000 12/22/2015 1.08000 % 9/15/2017 $ 30,000,000 |
Subordinated Debt | (Dollars in thousands) Balance as of June 30, 2016 6.5% Subordinated Debt $ 7,000 Less: Issuance costs (148 ) $ 6,852 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2016 and December 31, 2015: (Dollars in thousands) Fair Value Measurements at June 30, 2016 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 6,453 $ — $ 1,000 $ 5,453 U. S. Government agencies 23,811 2,202 21,609 — State and municipal obligations 23,748 — 23,748 — Total securities available-for-sale: $ 54,012 $ 2,202 $ 46,357 $ 5,453 Mortgage servicing rights $ 620 $ — $ — $ 620 Defined benefit plan assets: Cash and cash equivalents $ 3 $ 3 $ — $ — Mutual funds - fixed income 1,053 1,053 — — Mutual funds - equity 1,549 1,549 — — Total defined benefit plan assets $ 2,605 $ 2,605 $ — $ — Fair Value Measurements at December 31, 2015 Using Description Balance Level 1 Level 2 Level 3 Securities available-for-sale: Corporate bonds $ 3,945 $ — $ — $ 3,945 U. S. Government agencies 21,288 1,216 20,072 — State and municipal obligations 28,857 — 28,857 — Total securities available-for-sale: $ 54,090 $ 1,216 $ 48,929 $ 3,945 Mortgage servicing rights $ 658 $ — $ — $ 658 Defined benefit plan assets: Cash and cash equivalents $ 3 $ 3 $ — $ — Mutual funds - fixed income 1,119 1,119 — — Mutual funds - equity 1,684 1,684 — — Total defined benefit plan assets $ 2,806 $ 2,806 $ — $ — |
Reconciliation of Items Using Level Three Inputs | The reconciliation of items using Level 3 inputs is as follows: Corporate (Dollars in thousands) MSRs Bonds Balance, January 1, 2016 $ 658 $ 3,945 Purchases — 2,500 Impairments — — Fair value adjustments (38 ) 8 Sales — — Balance, June 30, 2016 $ 620 $ 6,453 |
Summary of Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the Company’s assets that were measured at fair value on a nonrecurring basis at the end of the respective period. Fair Value Measurements at June 30, 2016 Using (Dollars in thousands) Balance as of Description June 30, 2016 Level 1 Level 2 Level 3 Impaired Loans, net $ 3,580 $ — $ — $ 3,580 Other real estate owned, net 2,641 — — 2,641 Fair Value Measurements at December 31, 2015 Using Balance as of Description December 31, 2015 Level 1 Level 2 Level 3 Impaired Loans, net $ 3,868 $ — $ — $ 3,868 Other real estate owned, net 1,870 — — 1,870 |
Summary of Quantitative Fair Value Measurements for Level 3 | The following table displays quantitative information about Level 3 Fair Value Measurements as of June 30, 2016: Range Balance as of Valuation Unobservable (Weighted (Dollars in thousands) June 30, 2016 Technique Input Average) Impaired Loans, net $ 3,580 Discounted appraised value Selling Cost 10% - 20% (11% ) Lack of Marketability 50% (50% ) Other real estate owned, net 2,641 Discounted appraised value Selling Cost 3% - 13 (5% ) Lack of Marketability 10% - 20% (11% ) The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2015: Range Balance as of Valuation Unobservable (Weighted (Dollars in thousands) December 31, 2015 Technique Input Average) Impaired Loans, net $ 3,868 Discounted appraised value Selling Cost 10% - 25% (13% ) Lack of Marketability 50% - 60% (51% ) Other real estate owned, net 1,870 Discounted appraised value Selling Cost 3% - 13% (4% ) Lack of Marketability 10% - 20% (12% ) |
Estimated Fair Values of Financial Instruments | The estimated fair values of financial instruments are shown in the following table. The carrying amounts in the table are included in the balance sheet under the applicable captions. Fair Value Measurements at June 30, 2016 Using (Dollars in thousands) Balance as of Fair Value as of Description June 30, 2016 June 30, 2016 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 5,141 $ 5,141 $ 5,141 $ — $ — Interest-bearing deposits 20,050 20,050 20,050 — — Certificates of deposit 5,456 5,456 — 5,456 — Federal funds sold 1,546 1,546 1,546 — — Securities available-for-sale 54,012 54,012 2,202 46,357 5,453 Restricted securities 2,422 2,422 — — 2,422 Loans, net 347,755 356,898 — — 356,898 Loans held for sale 2,425 2,553 1,301 — 1,252 Accrued interest receivable 1,270 1,270 — 1,270 — Mortgage servicing rights 620 620 — — 620 Financial Liabilities: Non-interest-bearing liabilities $ 74,157 $ 74,157 $ 74,157 $ — $ — Savings and other interest-bearing deposits 177,075 177,075 — 177,075 — Time deposits 127,797 129,326 — — 129,326 Securities sold under repurchase agreements 8,182 8,182 — 8,182 — FHLB advances 30,000 30,813 — 30,813 — Subordinated debt 6,852 7,000 — — 7,000 Accrued interest payable 331 331 — 331 — Fair Value Measurements at December (Dollars in thousands) Balance as of Fair Value as of Description December 31, 2015 December 31, 2015 Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 4,969 $ 4,969 $ 4,969 $ — $ — Interest-bearing deposits 15,330 15,330 15,330 — — Certificates of deposit 5,735 5,735 — 5,487 248 Federal funds sold 271 271 271 — — Securities available-for-sale 54,090 54,090 1,216 48,929 3,945 Restricted securities 2,731 2,731 — — 2,731 Loans, net 343,323 347,500 — — 347,500 Loans held for sale 270 270 — — 270 Accrued interest receivable 1,318 1,318 — 1,318 — Mortgage servicing rights 658 658 — — 658 Financial Liabilities: Non-interest-bearing liabilities $ 65,842 $ 65,842 $ 65,842 $ — $ — Savings and other interest-bearing deposits 166,628 166,628 — 166,628 — Time deposits 127,388 127,433 — — 127,433 Securities sold under repurchase agreements 7,161 7,161 — 7,161 — FHLB advances 40,000 40,855 — 40,855 — Subordinated debt 6,844 7,000 — — 7,000 Accrued interest payable 318 318 — 318 — |
Changes in Accumulated Other 29
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Balances in Accumulated Other Comprehensive Income (Loss) | The balances in accumulated other comprehensive income (loss) are shown in the following tables: For the Three Months Ended June 30, 2016 Net Unrealized Pension and Accumulated Other Gains (Losses) Post-retirement Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance April 1, 2016 $ 438 $ (883 ) $ (445 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $130 255 — 255 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $35 (69 ) — (69 ) Balance June 30, 2016 $ 624 $ (883 ) $ (259 ) For the Three Months Ended June 30, 2015 Net Unrealized Pension and Accumulated Other Gains (Losses) Post-retirement Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance April 1, 2015 $ 246 $ (966 ) $ (720 ) Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $192 (372 ) — (372 ) Reclassification for previously unrealized net gains recognized in income, net of tax expense of $2 (4 ) — (4 ) Balance June 30, 2015 $ (130 ) $ (966 ) $ (1,096 ) For the Six Months Ended June 30, 2016 Net Unrealized Pension and Accumulated Other Gains (Losses) Post-retirement Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance January 1, 2016 $ 107 $ (883 ) $ (776 ) Change in net unrealized holding gains on securities, before reclassification, net of tax expense of $303 590 — 590 Reclassification for previously unrealized net gains recognized in income, net of tax expense of $37 (73 ) — (73 ) Balance June 30, 2016 $ 624 $ (883 ) $ (259 ) For the Six Months Ended June 30, 2015 Net Unrealized Pension and Accumulated Other Gains (Losses) Post-retirement Comprehensive (Dollars in thousands) on Securities Benefit Plans Income (Loss) Balance January 1, 2015 $ 45 $ (966 ) $ (921 ) Change in net unrealized holding losses on securities, before reclassification, net of tax benefit of $90 (174 ) — (174 ) Reclassification for previously unrealized net gains recognized in income, net of tax expense of $1 (1 ) — (1 ) Balance June 30, 2015 $ (130 ) $ (966 ) $ (1,096 ) |
Reclassification of Unrealized Gains (Losses) and Impairments on Securities | Reclassification for previously unrealized gains (losses) and impairments on securities are reported in the Consolidated Statements of Income as follows. No unrealized gains (losses) on pension and post-employment related costs were reclassified to the Consolidated Statements of Income in the three and six months ended June 30, 2016 and 2015. Accumulated Other Comprehensive Income (Loss) Reclassification for the Three Months Ended Holding Losses on Securities (Dollars in thousands) June 30, 2016 June 30, 2015 Net gains on sale of securities available-for-securities $ 104 $ 6 Tax expense (35 ) (2 ) Impact on net income $ 69 $ 4 Accumulated Other Comprehensive Income (Loss) Reclassification for the Six Months Ended Holding Losses on Securities (Dollars in thousands) June 30, 2016 June 30, 2015 Net gains on sale of securities available-for-securities $ 110 $ 2 Tax expense (37 ) (1 ) Impact on net income $ 73 $ 1 |
General - Additional Informatio
General - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016 | |
Bank Of Lancaster | |
Organization Presentation And General [Line Items] | |
Percent of ownership | 100.00% |
Bay Trust Company | |
Organization Presentation And General [Line Items] | |
Percent of ownership | 100.00% |
Steptoes Holdings | |
Organization Presentation And General [Line Items] | |
Percent of ownership | 100.00% |
Significant Accounting Polici31
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Significant Accounting Policies [Line Items] | |||||
Unrealized gains adjustment, net of tax | $ 186,000 | $ (376,000) | $ 517,000 | $ (175,000) | |
Unrealized market gain included in accumulated other comprehensive income, tax | 130,000 | $ (192,000) | $ 303,000 | $ (90,000) | |
Credit card and other personal loans charged off period no later than period | 180 days | ||||
Percentage of excess loan balance for watch category | 90.00% | ||||
Impaired loans measurement | Impaired loans measured for impairment generally include (1) non-accruing Special mention, Substandard and Doubtful loans in excess of $250,000; (2) Substandard and Doubtful loans in excess of $500,000; (3) Special Mention loans in excess of $500,000 if any of the loans in the relationship are more than 30 days past due or if the borrower has filed for bankruptcy; and (4) all TDRs. | ||||
Loan Receivables | 148,392,000 | $ 148,392,000 | $ 151,305,000 | ||
Special Mention | |||||
Significant Accounting Policies [Line Items] | |||||
Loan Receivables | 1,882,000 | $ 1,882,000 | 3,954,000 | ||
Loan due days | 30 days | ||||
Residential First Mortgages | |||||
Significant Accounting Policies [Line Items] | |||||
Minimum balance in order to assign a risk rating grade | 1,000,000 | $ 1,000,000 | |||
Consumer and Other Loans | |||||
Significant Accounting Policies [Line Items] | |||||
Minimum balance in order to assign a risk rating grade | 250,000 | $ 250,000 | |||
Certificates of deposit | |||||
Significant Accounting Policies [Line Items] | |||||
Unrealized gains adjustment, net of tax | 31,000 | ||||
Unrealized market gain included in accumulated other comprehensive income, tax | $ 20,000 | ||||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Number of days past due for a loan to remain on accrual status | 90 days | ||||
Minimum | Non-accruing Special mention, Substandard and Doubtful loans | |||||
Significant Accounting Policies [Line Items] | |||||
Loan Receivables | 250,000 | $ 250,000 | |||
Minimum | Substandard and Doubtful loans | |||||
Significant Accounting Policies [Line Items] | |||||
Loan Receivables | 500,000 | 500,000 | |||
Minimum | Special Mention | |||||
Significant Accounting Policies [Line Items] | |||||
Loan Receivables | $ 500,000 | $ 500,000 |
Securities - Aggregate Amortize
Securities - Aggregate Amortized Costs and Fair Values of Available-for-Sale Securities Portfolio (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 53,037 | $ 53,924 | |
Gross Unrealized Gains | 991 | 382 | |
Gross Unrealized (Losses) | (16) | (216) | |
Fair Value | 54,012 | 54,090 | [1] |
US Government Agencies | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 23,626 | 21,375 | |
Gross Unrealized Gains | 201 | 69 | |
Gross Unrealized (Losses) | (16) | (156) | |
Fair Value | 23,811 | 21,288 | |
State and Municipal Obligations | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 22,966 | 28,599 | |
Gross Unrealized Gains | 782 | 313 | |
Gross Unrealized (Losses) | (55) | ||
Fair Value | 23,748 | 28,857 | |
Corporate Bonds | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 6,445 | 3,950 | |
Gross Unrealized Gains | 8 | ||
Gross Unrealized (Losses) | (5) | ||
Fair Value | $ 6,453 | $ 3,945 | |
[1] | Derived from Audited December 31, 2015 Financial Statements |
Securities - Gross Realized Gai
Securities - Gross Realized Gains and Gross Realized Losses on Sales of Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Gross realized gains | $ 105 | $ 24 | $ 120 | $ 24 |
Gross realized losses | (1) | (18) | (10) | (22) |
Net realized gains (losses) | 104 | 6 | 110 | 2 |
Aggregate proceeds | $ 6,395 | $ 1,710 | $ 9,097 | $ 2,324 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($)Bond | Jun. 30, 2015 | Jun. 30, 2016USD ($)Bond | Jun. 30, 2015 | Dec. 31, 2015USD ($)Bond | ||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Average yields (taxable equivalent) on securities | 3.08% | 2.45% | 3.06% | 2.46% | ||
Market value of securities | $ 10,200 | $ 10,200 | $ 8,600 | |||
Securities sold under repurchase agreements | 8,182 | 8,182 | 7,161 | [1] | ||
Company's investment in Federal Home Loan Bank stock | 1,700 | 1,700 | 2,000 | |||
Company's investment in Federal Reserve Bank stock | $ 565 | $ 565 | $ 505 | |||
Municipal Securities | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Bonds with unrealized loss positions | Bond | 2 | 2 | 17 | |||
US Government Agencies | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Bonds with unrealized loss positions | Bond | 6 | 6 | 24 | |||
Corporate Bonds | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Bonds with unrealized loss positions | Bond | 1 | |||||
[1] | Derived from Audited December 31, 2015 Financial Statements |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Positions (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 16,932 | |
Less than 12 months, Unrealized Loss | (163) | |
12 months or more, Fair Value | 4,900 | |
12 months or more, Unrealized Loss | (53) | |
Fair Value, Total | 21,832 | |
Total Unrealized Loss | (216) | |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 495 | |
Less than 12 months, Unrealized Loss | (5) | |
Fair Value, Total | 495 | |
Total Unrealized Loss | (5) | |
US Government Agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 901 | 13,871 |
Less than 12 months, Unrealized Loss | (2) | (141) |
12 months or more, Fair Value | 1,455 | 1,619 |
12 months or more, Unrealized Loss | (14) | (15) |
Fair Value, Total | 2,356 | 15,490 |
Total Unrealized Loss | $ (16) | (156) |
State and Municipal Obligations | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 2,566 | |
Less than 12 months, Unrealized Loss | (17) | |
12 months or more, Fair Value | 3,281 | |
12 months or more, Unrealized Loss | (38) | |
Fair Value, Total | 5,847 | |
Total Unrealized Loss | $ (55) |
Loans - Summary of Balances of
Loans - Summary of Balances of Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Summary of balances of loans | |||
Total loans | $ 350,949 | $ 347,222 | |
Net unamortized deferred loan costs | 353 | 324 | |
Allowance for loan losses | (3,547) | (4,223) | [1] |
Loans, net | 347,755 | 343,323 | [1] |
Construction, Land and Land Development | |||
Summary of balances of loans | |||
Total loans | 39,044 | 42,129 | |
Farmland | |||
Summary of balances of loans | |||
Total loans | 1,038 | 1,030 | |
Commercial Mortgages (Non-Owner Occupied) | |||
Summary of balances of loans | |||
Total loans | 29,578 | 29,086 | |
Commercial Mortgages (Owner Occupied) | |||
Summary of balances of loans | |||
Total loans | 46,965 | 43,956 | |
Residential First Mortgages | |||
Summary of balances of loans | |||
Total loans | 172,780 | 164,405 | |
Residential Revolving and Junior Mortgages | |||
Summary of balances of loans | |||
Total loans | 25,987 | 26,497 | |
Commercial and Industrial | |||
Summary of balances of loans | |||
Total loans | 31,767 | 35,104 | |
Allowance for loan losses | (435) | (599) | |
Consumer and Other Loans | |||
Summary of balances of loans | |||
Total loans | 3,790 | 5,015 | |
Allowance for loan losses | $ (117) | $ (122) | |
[1] | Derived from Audited December 31, 2015 Financial Statements |
Loans - Additional Information
Loans - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016 | |
Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of days past due for a loan to remain on accrual status | 90 days |
Loans - Recorded Investment in
Loans - Recorded Investment in Past Due and Non-accruing Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | $ 1,585 | $ 1,906 |
90 Days or More Past Due and Still Accruing | 216 | 11 |
Nonaccruals | 5,147 | 6,433 |
Total Past Due and Nonaccruals | 6,948 | 8,350 |
Current | 344,001 | 338,872 |
Total Gross Loans | 350,949 | 347,222 |
Construction, Land and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 63 | 93 |
Nonaccruals | 632 | 672 |
Total Past Due and Nonaccruals | 695 | 765 |
Current | 38,349 | 41,364 |
Total Gross Loans | 39,044 | 42,129 |
Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 1,038 | 1,030 |
Total Gross Loans | 1,038 | 1,030 |
Commercial Mortgages (Non-Owner Occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 264 | |
Total Past Due and Nonaccruals | 264 | |
Current | 29,578 | 28,822 |
Total Gross Loans | 29,578 | 29,086 |
Commercial Mortgages (Owner Occupied) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 943 | 133 |
Nonaccruals | 1,759 | 2,350 |
Total Past Due and Nonaccruals | 2,702 | 2,483 |
Current | 44,263 | 41,473 |
Total Gross Loans | 46,965 | 43,956 |
Residential First Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 509 | 1,304 |
90 Days or More Past Due and Still Accruing | 205 | |
Nonaccruals | 2,461 | 2,841 |
Total Past Due and Nonaccruals | 3,175 | 4,145 |
Current | 169,605 | 160,260 |
Total Gross Loans | 172,780 | 164,405 |
Residential Revolving and Junior Mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 51 | 70 |
Nonaccruals | 177 | 277 |
Total Past Due and Nonaccruals | 228 | 347 |
Current | 25,759 | 26,150 |
Total Gross Loans | 25,987 | 26,497 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 10 | |
Nonaccruals | 94 | 285 |
Total Past Due and Nonaccruals | 94 | 295 |
Current | 31,673 | 34,809 |
Total Gross Loans | 31,767 | 35,104 |
Consumer and Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
30-89 Days Past Due | 19 | 32 |
90 Days or More Past Due and Still Accruing | 11 | 11 |
Nonaccruals | 24 | 8 |
Total Past Due and Nonaccruals | 54 | 51 |
Current | 3,736 | 4,964 |
Total Gross Loans | $ 3,790 | $ 5,015 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loan Receivables Evaluated for Impairment Individually and Collectively by Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $ 11,133 | $ 10,826 |
Collectively evaluated for impairment | 339,816 | 336,396 |
Total Gross Loans | 350,949 | 347,222 |
Mortgage Loans on Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 11,041 | 10,542 |
Collectively evaluated for impairment | 304,351 | 296,561 |
Total Gross Loans | 315,392 | 307,103 |
Commercial and Industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 92 | 284 |
Collectively evaluated for impairment | 31,675 | 34,820 |
Total Gross Loans | 31,767 | 35,104 |
Consumer and Other Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Collectively evaluated for impairment | 3,790 | 5,015 |
Total Gross Loans | $ 3,790 | $ 5,015 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance for Loan Losses Disaggregated Based on Loan Receivables Evaluated for Impairment Individually and Collectively by Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | $ 656 | $ 1,534 | |
Collectively evaluated for impairment | 2,891 | 2,689 | |
Total allowance for loan losses | 3,547 | 4,223 | [1] |
Mortgage Loans on Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | 564 | 1,256 | |
Collectively evaluated for impairment | 2,431 | 2,246 | |
Total allowance for loan losses | 2,995 | 3,502 | |
Commercial and Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | 92 | 278 | |
Collectively evaluated for impairment | 343 | 321 | |
Total allowance for loan losses | 435 | 599 | |
Consumer and Other Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Collectively evaluated for impairment | 117 | 122 | |
Total allowance for loan losses | $ 117 | $ 122 | |
[1] | Derived from Audited December 31, 2015 Financial Statements |
Allowance for Loan Losses - A41
Allowance for Loan Losses - Allowance for Loan Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
ALLOWANCE FOR LOAN LOSSES: | ||||
Beginning Balance | $ 4,107 | $ 3,247 | $ 4,223 | $ 3,205 |
(Charge-offs) | (751) | (54) | (845) | (87) |
Recoveries | 8 | 41 | 21 | 51 |
Provision | 183 | 205 | 148 | 270 |
Ending Balance | 3,547 | 3,439 | 3,547 | 3,439 |
Mortgage Loans on Real Estate | ||||
ALLOWANCE FOR LOAN LOSSES: | ||||
Beginning Balance | 3,410 | 2,763 | 3,502 | 2,778 |
(Charge-offs) | (573) | (656) | (1) | |
Recoveries | 4 | 5 | 10 | 10 |
Provision | 154 | 121 | 139 | 102 |
Ending Balance | 2,995 | 2,889 | 2,995 | 2,889 |
Commercial and Industrial | ||||
ALLOWANCE FOR LOAN LOSSES: | ||||
Beginning Balance | 579 | 315 | 599 | 323 |
(Charge-offs) | (158) | (158) | ||
Recoveries | 5 | |||
Provision | 14 | 105 | (11) | 97 |
Ending Balance | 435 | 420 | 435 | 420 |
Consumer and Other Loans | ||||
ALLOWANCE FOR LOAN LOSSES: | ||||
Beginning Balance | 118 | 169 | 122 | 104 |
(Charge-offs) | (20) | (54) | (31) | (86) |
Recoveries | 4 | 36 | 6 | 41 |
Provision | 15 | (21) | 20 | 71 |
Ending Balance | $ 117 | $ 130 | $ 117 | $ 130 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016USD ($)Property | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)Property | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)Property | Apr. 30, 2015USD ($)Property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Period of nonperforming loans | 90 days | |||||
Non-accruing loans excluded from impaired loan | $ 108,000 | $ 108,000 | $ 95,000 | |||
Non-accruing loans accrued interest | $ 2,000 | $ 4,000 | $ 3,000 | $ 8,000 | ||
No. of Properties | Property | 15 | 15 | 16 | |||
Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Residential properties collateralized with loan | Property | 0 | |||||
No. of Properties | Property | 3 | 3 | 3 | |||
Residential | Other assets | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Properties marketed for sale, value | $ 708,000 | $ 708,000 | ||||
No. of Properties | Property | 1 | 1 | ||||
Branch Office | Other assets | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Properties marketed for sale, value | $ 403,000 | |||||
No. of Properties | Property | 1 | |||||
Residential First Mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Minimum balance in order to assign a risk rating grade | $ 1,000,000 | $ 1,000,000 | ||||
Consumer and Other Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Minimum balance in order to assign a risk rating grade | $ 250,000 | $ 250,000 |
Allowance for Loan Losses - Int
Allowance for Loan Losses - Internal Risk Rating Grades (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
INTERNAL RISK RATING GRADES | ||
Loan Receivables | $ 148,392 | $ 151,305 |
Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 121,046 | 122,386 |
Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 20,264 | 20,071 |
Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,882 | 3,954 |
Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 5,200 | 4,894 |
Construction, Land and Land Development | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 39,044 | 42,129 |
Construction, Land and Land Development | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 31,736 | 34,692 |
Construction, Land and Land Development | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 5,280 | 5,337 |
Construction, Land and Land Development | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,119 | |
Construction, Land and Land Development | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,028 | 981 |
Farmland | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,038 | 1,030 |
Farmland | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,038 | 1,030 |
Commercial Mortgages (Non-Owner Occupied) | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 29,578 | 29,086 |
Commercial Mortgages (Non-Owner Occupied) | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 24,815 | 24,258 |
Commercial Mortgages (Non-Owner Occupied) | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 4,240 | 4,564 |
Commercial Mortgages (Non-Owner Occupied) | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 275 | |
Commercial Mortgages (Non-Owner Occupied) | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 248 | 264 |
Commercial Mortgages (Owner Occupied) | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 46,965 | 43,956 |
Commercial Mortgages (Owner Occupied) | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 34,255 | 33,023 |
Commercial Mortgages (Owner Occupied) | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 8,561 | 4,968 |
Commercial Mortgages (Owner Occupied) | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 1,479 | 2,687 |
Commercial Mortgages (Owner Occupied) | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,670 | 3,278 |
Commercial and Industrial | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 31,767 | 35,104 |
Commercial and Industrial | Pass | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 29,202 | 29,383 |
Commercial and Industrial | Watch | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 2,183 | 5,202 |
Commercial and Industrial | Special Mention | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | 128 | 148 |
Commercial and Industrial | Substandard | ||
INTERNAL RISK RATING GRADES | ||
Loan Receivables | $ 254 | $ 371 |
Allowance for Loan Losses - Per
Allowance for Loan Losses - Performing and Non Performing Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | ||
Performing and non performing loans | ||||
Loan receivables | $ 202,557 | $ 195,917 | ||
Performing | ||||
Performing and non performing loans | ||||
Loan receivables | 199,679 | 192,780 | ||
Nonperforming | ||||
Performing and non performing loans | ||||
Loan receivables | 2,878 | 3,137 | ||
Residential First Mortgages | ||||
Performing and non performing loans | ||||
Loan receivables | 172,780 | [1] | 164,405 | [2] |
Residential First Mortgages | Performing | ||||
Performing and non performing loans | ||||
Loan receivables | 170,114 | [1] | 161,564 | [2] |
Residential First Mortgages | Nonperforming | ||||
Performing and non performing loans | ||||
Loan receivables | 2,666 | [1] | 2,841 | [2] |
Residential Revolving and Junior Mortgages | ||||
Performing and non performing loans | ||||
Loan receivables | 25,987 | [3] | 26,497 | [4] |
Residential Revolving and Junior Mortgages | Performing | ||||
Performing and non performing loans | ||||
Loan receivables | 25,810 | [3] | 26,220 | [4] |
Residential Revolving and Junior Mortgages | Nonperforming | ||||
Performing and non performing loans | ||||
Loan receivables | 177 | [3] | 277 | [4] |
Consumer and Other Loans | ||||
Performing and non performing loans | ||||
Loan receivables | 3,790 | [5] | 5,015 | [6] |
Consumer and Other Loans | Performing | ||||
Performing and non performing loans | ||||
Loan receivables | 3,755 | [5] | 4,996 | [6] |
Consumer and Other Loans | Nonperforming | ||||
Performing and non performing loans | ||||
Loan receivables | $ 35 | [5] | $ 19 | [6] |
[1] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.6 million as of June 30, 2016. | |||
[2] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.9 million as of December 31, 2015. | |||
[3] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $1.2 million as of June 30, 2016. | |||
[4] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $372 thousand as of December 31, 2015. | |||
[5] | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $16 thousand as of June 30, 2016. | |||
[6] | No Consumer Loans had been assigned a risk rating grade of Substandard as of December 31, 2015. |
Allowance for Loan Losses - P45
Allowance for Loan Losses - Performing and Non Performing Loans (Parenthetical) (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | $ 202,557 | $ 195,917 | ||
Residential First Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 172,780 | [1] | 164,405 | [2] |
Residential First Mortgages | Substandard | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 3,600 | 3,900 | ||
Residential Revolving and Junior Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 25,987 | [3] | 26,497 | [4] |
Residential Revolving and Junior Mortgages | Substandard | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 1,200 | 372 | ||
Consumer and Other Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | 3,790 | [5] | 5,015 | [6] |
Consumer and Other Loans | Substandard | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Risk rating grade totaled | $ 16 | $ 0 | ||
[1] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.6 million as of June 30, 2016. | |||
[2] | Residential First Mortgages which have been assigned a risk rating grade of Substandard totaled $3.9 million as of December 31, 2015. | |||
[3] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $1.2 million as of June 30, 2016. | |||
[4] | Residential Revolving and Junior Mortgages which have been assigned a risk rating grade of Substandard totaled $372 thousand as of December 31, 2015. | |||
[5] | Consumer Loans which have been assigned a risk rating grade of Substandard totaled $16 thousand as of June 30, 2016. | |||
[6] | No Consumer Loans had been assigned a risk rating grade of Substandard as of December 31, 2015. |
Allowance for Loan Losses - Com
Allowance for Loan Losses - Company's Recorded Investment and Customers' Unpaid Principal Balances for Impaired Loans, with Associated Allowance Amount (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Recorded Investment | $ 6,897 | $ 6,897 | $ 5,424 | |||
With no related allowance, Customers' Unpaid Principal Balance | 6,974 | 6,974 | 5,504 | |||
With an allowance recorded, Recorded Investment | 4,236 | 4,236 | 5,402 | |||
With an allowance recorded, Customers' Unpaid Principal Balance | 4,338 | 4,338 | 5,689 | |||
With an allowance recorded, Related Allowance | 656 | 656 | 1,534 | |||
Total Impaired Loans, Recorded Investment | 11,133 | 11,133 | 10,826 | |||
Total Impaired Loans, Customers' Unpaid Principal Balance | 11,312 | 11,312 | 11,193 | |||
Total Impaired Loans, Related Allowance | 656 | 656 | 1,534 | |||
With no related allowance, Average Recorded Investment | 6,892 | $ 4,602 | 5,521 | $ 4,240 | ||
With no related allowance, Interest Income Recognized | 25 | 51 | 85 | 83 | ||
With an allowance recorded, Average Recorded Investment | 4,386 | 3,754 | 4,439 | 3,612 | ||
With an allowance recorded, Interest Income Recognized | 31 | 37 | 60 | 70 | ||
Total, Average Recorded Investment | 11,278 | 8,356 | 9,960 | 7,852 | ||
Total, Interest Income Recognized | 56 | 88 | 145 | 153 | ||
Construction, Land and Land Development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Recorded Investment | 1,533 | 1,533 | 445 | |||
With no related allowance, Customers' Unpaid Principal Balance | 1,540 | 1,540 | 451 | |||
With an allowance recorded, Recorded Investment | 253 | 253 | 262 | |||
With an allowance recorded, Customers' Unpaid Principal Balance | 288 | 288 | 290 | |||
With an allowance recorded, Related Allowance | 110 | 110 | 120 | |||
Total Impaired Loans, Recorded Investment | 1,786 | 1,786 | 707 | |||
Total Impaired Loans, Customers' Unpaid Principal Balance | 1,828 | 1,828 | 741 | |||
Total Impaired Loans, Related Allowance | 110 | 110 | 120 | |||
With no related allowance, Average Recorded Investment | 1,535 | 449 | 1,172 | 449 | ||
With no related allowance, Interest Income Recognized | 14 | 27 | ||||
With an allowance recorded, Average Recorded Investment | 255 | 272 | 257 | 274 | ||
With an allowance recorded, Interest Income Recognized | 1 | 1 | 2 | 2 | ||
Total, Average Recorded Investment | 1,790 | 721 | 1,429 | 723 | ||
Total, Interest Income Recognized | 15 | 1 | 29 | 2 | ||
Residential First Mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Recorded Investment | 2,736 | 2,736 | 3,130 | |||
With no related allowance, Customers' Unpaid Principal Balance | 2,761 | 2,761 | 3,166 | |||
With an allowance recorded, Recorded Investment | 2,238 | 2,238 | 2,507 | |||
With an allowance recorded, Customers' Unpaid Principal Balance | 2,242 | 2,242 | 2,507 | |||
With an allowance recorded, Related Allowance | 170 | 170 | 308 | |||
Total Impaired Loans, Recorded Investment | 4,974 | 4,974 | 5,637 | |||
Total Impaired Loans, Customers' Unpaid Principal Balance | 5,003 | 5,003 | 5,673 | |||
Total Impaired Loans, Related Allowance | 170 | 170 | 308 | |||
With no related allowance, Average Recorded Investment | 2,728 | 1,761 | 2,231 | 1,696 | ||
With no related allowance, Interest Income Recognized | (2) | 18 | 14 | 36 | ||
With an allowance recorded, Average Recorded Investment | 2,370 | 2,160 | 2,416 | 2,164 | ||
With an allowance recorded, Interest Income Recognized | 21 | 26 | 42 | 52 | ||
Total, Average Recorded Investment | 5,098 | 3,921 | 4,647 | 3,860 | ||
Total, Interest Income Recognized | 19 | 44 | 56 | 88 | ||
Residential Revolving and Junior Mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Recorded Investment | [1] | 991 | 991 | 233 | ||
With no related allowance, Customers' Unpaid Principal Balance | [1] | 992 | 992 | 233 | ||
With an allowance recorded, Recorded Investment | [1] | 195 | 195 | 258 | ||
With an allowance recorded, Customers' Unpaid Principal Balance | [1] | 196 | 196 | 259 | ||
With an allowance recorded, Related Allowance | [1] | 151 | 151 | 150 | ||
Total Impaired Loans, Recorded Investment | [1] | 1,186 | 1,186 | 491 | ||
Total Impaired Loans, Customers' Unpaid Principal Balance | [1] | 1,188 | 1,188 | 492 | ||
Total Impaired Loans, Related Allowance | [1] | 151 | 151 | 150 | ||
With no related allowance, Average Recorded Investment | [1] | 988 | 50 | 675 | 50 | |
With no related allowance, Interest Income Recognized | [1] | 8 | 1 | 19 | 2 | |
With an allowance recorded, Average Recorded Investment | [1] | 196 | 173 | 195 | 173 | |
With an allowance recorded, Interest Income Recognized | [1] | 2 | 2 | 4 | 4 | |
Total, Average Recorded Investment | [1] | 1,184 | 223 | 870 | 223 | |
Total, Interest Income Recognized | [1] | 10 | 3 | 23 | 6 | |
Commercial Mortgages (Non-Owner Occupied) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Recorded Investment | 248 | 248 | 264 | |||
With no related allowance, Customers' Unpaid Principal Balance | 248 | 248 | 264 | |||
Total Impaired Loans, Recorded Investment | 248 | 248 | 264 | |||
Total Impaired Loans, Customers' Unpaid Principal Balance | 248 | 248 | 264 | |||
With no related allowance, Average Recorded Investment | 248 | 786 | 253 | 612 | ||
With no related allowance, Interest Income Recognized | 4 | 14 | 8 | 18 | ||
Total, Average Recorded Investment | 248 | 786 | 253 | 612 | ||
Total, Interest Income Recognized | 4 | 14 | 8 | 18 | ||
Commercial Mortgages (Owner Occupied) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Recorded Investment | 1,389 | 1,389 | 1,352 | |||
With no related allowance, Customers' Unpaid Principal Balance | 1,433 | 1,433 | 1,390 | |||
With an allowance recorded, Recorded Investment | 1,458 | 1,458 | 2,091 | |||
With an allowance recorded, Customers' Unpaid Principal Balance | 1,520 | 1,520 | 2,348 | |||
With an allowance recorded, Related Allowance | 133 | 133 | 678 | |||
Total Impaired Loans, Recorded Investment | 2,847 | 2,847 | 3,443 | |||
Total Impaired Loans, Customers' Unpaid Principal Balance | 2,953 | 2,953 | 3,738 | |||
Total Impaired Loans, Related Allowance | 133 | 133 | 678 | |||
With no related allowance, Average Recorded Investment | 1,393 | 1,552 | 1,190 | 1,429 | ||
With no related allowance, Interest Income Recognized | 1 | 18 | 17 | 27 | ||
With an allowance recorded, Average Recorded Investment | 1,460 | 1,026 | 1,462 | 919 | ||
With an allowance recorded, Interest Income Recognized | 6 | 8 | 11 | 12 | ||
Total, Average Recorded Investment | 2,853 | 2,578 | 2,652 | 2,348 | ||
Total, Interest Income Recognized | 7 | 26 | 28 | 39 | ||
Commercial and Industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With an allowance recorded, Recorded Investment | 92 | 92 | 284 | |||
With an allowance recorded, Customers' Unpaid Principal Balance | 92 | 92 | 285 | |||
With an allowance recorded, Related Allowance | 92 | 92 | 278 | |||
Total Impaired Loans, Recorded Investment | 92 | 92 | 284 | |||
Total Impaired Loans, Customers' Unpaid Principal Balance | 92 | 92 | 285 | |||
Total Impaired Loans, Related Allowance | 92 | 92 | $ 278 | |||
With an allowance recorded, Average Recorded Investment | 105 | 123 | 109 | 82 | ||
With an allowance recorded, Interest Income Recognized | 1 | 1 | ||||
Total, Average Recorded Investment | 105 | 123 | 109 | 82 | ||
Total, Interest Income Recognized | $ 1 | $ 1 | ||||
Consumer and Other Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
With no related allowance, Average Recorded Investment | [2] | 4 | 4 | |||
Total, Average Recorded Investment | [2] | $ 4 | $ 4 | |||
[1] | Junior mortgages include equity lines. | |||||
[2] | Includes credit cards. |
Allowance for Loan Losses - Sum
Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)Loan | Jun. 30, 2016USD ($)Loan | Jun. 30, 2015USD ($)Loan | ||
Commercial Mortgages (Owner Occupied) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | Loan | [1] | 1 | ||
Pre-Modification Outstanding Recorded Investment | [1] | $ 105 | ||
Post-Modification Outstanding Recorded Investment | [1] | $ 124 | ||
Subsequently defaulted number of loans | Loan | 1 | |||
Subsequently defaulted recorded investment | $ 124 | |||
Residential First Mortgages | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Loans | Loan | [1] | 1 | 1 | |
Pre-Modification Outstanding Recorded Investment | [1] | $ 244 | $ 244 | |
Post-Modification Outstanding Recorded Investment | [1] | $ 244 | $ 244 | |
[1] | Modification was a capitalization of interest. |
Other Real Estate Owned Net - S
Other Real Estate Owned Net - Summary of Properties Included in Other Real Estate Owned (OREO) (Detail) $ in Thousands | Jun. 30, 2016USD ($)Property | Dec. 31, 2015USD ($)Property | |
Real Estate Properties [Line Items] | |||
No. of Properties | Property | 15 | 16 | |
Carrying Value | $ | $ 2,641 | $ 1,870 | [1] |
Residential | |||
Real Estate Properties [Line Items] | |||
No. of Properties | Property | 3 | 3 | |
Carrying Value | $ | $ 1,172 | $ 540 | |
Land lots | |||
Real Estate Properties [Line Items] | |||
No. of Properties | Property | 7 | 7 | |
Carrying Value | $ | $ 413 | $ 413 | |
Convenience Stores | |||
Real Estate Properties [Line Items] | |||
No. of Properties | Property | 1 | 2 | |
Carrying Value | $ | $ 59 | $ 191 | |
Restaurant | |||
Real Estate Properties [Line Items] | |||
No. of Properties | Property | 1 | 1 | |
Carrying Value | $ | $ 55 | $ 55 | |
Commercial properties | |||
Real Estate Properties [Line Items] | |||
No. of Properties | Property | 3 | 3 | |
Carrying Value | $ | $ 942 | $ 671 | |
[1] | Derived from Audited December 31, 2015 Financial Statements |
Earnings per share - Weighted A
Earnings per share - Weighted Average Number of Shares Used in Computing Earnings Per Share (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Basic earnings per share | 4,774,856 | 4,802,032 | 4,774,856 | 4,805,922 |
Effect of dilutive securities: | ||||
Stock options | 19,927 | 17,290 | 17,718 | 13,565 |
Diluted earnings per share | 4,794,783 | 4,819,322 | 4,792,574 | 4,819,487 |
Basic earnings per share | $ 0.12 | $ 0.06 | $ 0.23 | $ 0.14 |
Diluted earnings per share | $ 0.12 | $ 0.06 | $ 0.23 | $ 0.14 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Computation Of Earnings Per Share Line Items | ||||
Shares not included in computing diluted earnings per share because effects were anti-dilutive | 46,135 | 54,733 | 53,635 | 68,473 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant | 342,000 | 342,000 | ||
Stock-based compensation expense | $ 0 | $ 0 | $ 16,000 | $ 17,000 |
Unrecognized compensation expenses related to stock award | $ 0 | $ 0 | ||
Options granted | 7,500 | 7,500 | ||
Options vested | 7,500 | 7,500 | ||
Aggregate fair value of options granted | $ 16,000 | $ 17,000 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value of Options (Detail) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate (5 year Treasury) | 1.49% | 1.52% |
Expected dividend yield | 0.00% | 0.00% |
Expected term (years) | 5 years | 5 years |
Expected volatility | 40.10% | 47.10% |
Stock-Based Compensation - Fa53
Stock-Based Compensation - Fair Value of Options (Parenthetical) (Detail) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock price volatility, risk free interest period | 5 years | 5 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding, beginning | 211,185 | |||
Granted, shares | 7,500 | 7,500 | ||
Forfeited, shares | 0 | |||
Exercised, shares | 0 | |||
Expired, shares | (8,598) | |||
Options outstanding and exercisable, ending | 210,087 | 211,185 | ||
Options outstanding, beginning, Weighted Average Exercise Price | $ 6.57 | |||
Granted, Weighted Average Exercise Price | 5.76 | |||
Forfeited, Weighted Average Exercise Price | 0 | |||
Exercised, Weighted Average Exercise Price | 0 | |||
Expired, Weighted Average Exercise Price | 12.84 | |||
Options outstanding and exercisable, ending, Weighted Average Exercise Price | $ 6.54 | $ 6.57 | ||
Options outstanding and exercisable, ending, Weighted Average Remaining Contractual Life | 5 years 10 months 24 days | 6 years | ||
Options outstanding and exercisable, ending, Aggregate Intrinsic Value | [1] | $ 113,544 | ||
[1] | The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on June 30, 2016. This amount changes based on changes in the market value of the Company's common stock. |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Defined Contribution Plan Disclosure [Line Items] | |
Minimum age of full-time employees | 21 years |
Conditional age-1 for availing plan | 55 years |
Conditional age-2 for availing plan | 65 years |
Conditional years of service -1 for availing plan | 10 years |
Conditional years of service-2 for availing plan | 5 years |
Pension Plan, Defined Benefit | |
Defined Contribution Plan Disclosure [Line Items] | |
Expected employer contribution | $ 0 |
Other Postretirement Benefit Plan, Defined Benefit | |
Defined Contribution Plan Disclosure [Line Items] | |
Expected employer contribution | 3,000 |
Employer contribution | $ 4,000 |
Employee Benefit Plans - Compon
Employee Benefit Plans - Components of Net Periodic Benefit Cost (Gain) (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Interest cost | $ 69 | $ 66 |
Expected return on plan assets | (96) | (99) |
Amortization of unrecognized net loss | 0 | 0 |
Recognized net actuarial loss | 39 | 37 |
Net periodic cost | 12 | 4 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 11 | 11 |
Interest cost | 14 | 15 |
Amortization of unrecognized net loss | 0 | 0 |
Net periodic cost | $ 25 | $ 26 |
Long Term Debt - Additional Inf
Long Term Debt - Additional Information (Detail) | May 28, 2015USD ($) | Jun. 30, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | |
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | $ 30,000,000 | $ 40,000,000 | [1] | |
Number of FHLB debt advances | Loan | 5 | 7 | ||
Repayment on Federal Home Loan Bank advances | $ 5,000,000 | |||
Immediate available credit | 52,500,000 | |||
Total line of credit | $ 88,500,000 | |||
Weighted average interest rate | 1.55% | 1.17% | ||
Subordinated Debt Due May 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 7,000,000 | $ 7,000,000 | ||
Debt instrument, coupon percentage | 6.50% | 6.50% | ||
Debt instrument, maturity date | May 28, 2025 | |||
Debt instrument, frequency of payment | 1st of March and September of each year, commencing September 1, 2015 | |||
[1] | Derived from Audited December 31, 2015 Financial Statements |
Long Term Debt - Advances of De
Long Term Debt - Advances of Debt (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | [1] | |
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | $ 30,000,000 | $ 40,000,000 | |
Adjustable Rate Hybrid | Federal Home Loan Bank Advances One | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | $ 10,000,000 | ||
Originated | Apr. 12, 2013 | ||
Current Interest Rate | 3.00985% | ||
Maturity Date | Apr. 13, 2020 | ||
Adjustable Rate Credit | Federal Home Loan Bank Advances Two | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | $ 5,000,000 | ||
Originated | Jun. 18, 2015 | ||
Current Interest Rate | 0.6666% | ||
Maturity Date | Sep. 19, 2016 | ||
Fixed Rate Credit | Federal Home Loan Bank Advances Three | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | $ 5,000,000 | ||
Originated | Oct. 20, 2015 | ||
Current Interest Rate | 0.52% | ||
Maturity Date | Oct. 20, 2016 | ||
Fixed Rate Credit | Federal Home Loan Bank Advances Four | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | $ 5,000,000 | ||
Originated | Dec. 21, 2015 | ||
Current Interest Rate | 0.99% | ||
Maturity Date | Jun. 15, 2017 | ||
Fixed Rate Credit | Federal Home Loan Bank Advances Five | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank advances | $ 5,000,000 | ||
Originated | Dec. 22, 2015 | ||
Current Interest Rate | 1.08% | ||
Maturity Date | Sep. 15, 2017 | ||
[1] | Derived from Audited December 31, 2015 Financial Statements |
Subordinated Debt (Detail)
Subordinated Debt (Detail) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | [1] | May 28, 2015 |
Debt and Financial Instruments [Line Items] | ||||
Subordinated debt, net of issuance costs | $ 6,852,000 | $ 6,844,000 | ||
Subordinated Debt Due May 2025 | ||||
Debt and Financial Instruments [Line Items] | ||||
Debt instrument, face amount | 7,000,000 | $ 7,000,000 | ||
Less: Issuance costs | (148,000) | |||
Subordinated debt, net of issuance costs | $ 6,852,000 | |||
[1] | Derived from Audited December 31, 2015 Financial Statements |
Subordinated Debt (Parenthetica
Subordinated Debt (Parenthetical) (Detail) | Jun. 30, 2016 | May 28, 2015 |
Subordinated Debt Due May 2025 | ||
Debt and Financial Instruments [Line Items] | ||
Debt instrument, coupon percentage | 6.50% | 6.50% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 3 - Mortgage Servicing Rights | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016$ / Loan | Dec. 31, 2015Loan$ / Loan | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan segregated, number of pools | Loan | 14 | |
Service costs assumed, per loan | $ / Loan | 6 | 6 |
Average PSA assumed rate | 222.00% | 163.00% |
Discount rate | 10.00% | 11.00% |
100% PSA | First Month | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 0.00% | |
100% PSA | Between First Month and Month 30 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate increase, each month | 0.20% | |
100% PSA | Month 30 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 6.00% | |
100% PSA | Thereafter | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Prepayment rate | 6.00% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Balances of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Securities available for sale: | |||
Securities available-for-sale | $ 54,012 | $ 54,090 | [1] |
Mortgage servicing rights | 620 | 658 | [1] |
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 2,605 | 2,806 | |
Corporate Bonds | |||
Securities available for sale: | |||
Securities available-for-sale | 6,453 | 3,945 | |
US Government Agencies | |||
Securities available for sale: | |||
Securities available-for-sale | 23,811 | 21,288 | |
State and Municipal Obligations | |||
Securities available for sale: | |||
Securities available-for-sale | 23,748 | 28,857 | |
Cash and Cash Equivalents | |||
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 3 | 3 | |
Fixed Income Funds | |||
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 1,053 | 1,119 | |
Equity Funds | |||
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 1,549 | 1,684 | |
Fair Value, Inputs, Level 1 | |||
Securities available for sale: | |||
Securities available-for-sale | 2,202 | 1,216 | |
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 2,605 | 2,806 | |
Fair Value, Inputs, Level 1 | US Government Agencies | |||
Securities available for sale: | |||
Securities available-for-sale | 2,202 | 1,216 | |
Fair Value, Inputs, Level 1 | Cash and Cash Equivalents | |||
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 3 | 3 | |
Fair Value, Inputs, Level 1 | Fixed Income Funds | |||
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 1,053 | 1,119 | |
Fair Value, Inputs, Level 1 | Equity Funds | |||
Defined benefit plan assets: | |||
Defined Benefit Plan Fair Value Of Plan Assets | 1,549 | 1,684 | |
Fair Value, Inputs, Level 2 | |||
Securities available for sale: | |||
Securities available-for-sale | 46,357 | 48,929 | |
Fair Value, Inputs, Level 2 | Corporate Bonds | |||
Securities available for sale: | |||
Securities available-for-sale | 1,000 | ||
Fair Value, Inputs, Level 2 | US Government Agencies | |||
Securities available for sale: | |||
Securities available-for-sale | 21,609 | 20,072 | |
Fair Value, Inputs, Level 2 | State and Municipal Obligations | |||
Securities available for sale: | |||
Securities available-for-sale | 23,748 | 28,857 | |
Fair Value, Inputs, Level 3 | |||
Securities available for sale: | |||
Securities available-for-sale | 5,453 | 3,945 | |
Mortgage servicing rights | 620 | 658 | |
Fair Value, Inputs, Level 3 | Corporate Bonds | |||
Securities available for sale: | |||
Securities available-for-sale | $ 5,453 | $ 3,945 | |
[1] | Derived from Audited December 31, 2015 Financial Statements |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Items Using Level Three Inputs (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Mortgage Servicing Rights | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ 658 |
Impairments | 0 |
Fair value adjustments | (38) |
Sales | 0 |
Ending balance | 620 |
Corporate Bonds | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | 3,945 |
Purchases | 2,500 |
Impairments | 0 |
Fair value adjustments | 8 |
Sales | 0 |
Ending balance | $ 6,453 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, net | $ 3,580 | $ 3,868 |
Other real estate owned, net | 2,641 | 1,870 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans, net | 3,580 | 3,868 |
Other real estate owned, net | $ 2,641 | $ 1,870 |
Fair Value Measurements - Sum65
Fair Value Measurements - Summary of Quantitative Fair Value Measurements for Level 3 (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired Loans, net | $ 3,580 | $ 3,868 |
Other real estate owned, net | $ 2,641 | $ 1,870 |
Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Lack of Marketability | 50.00% | |
Minimum | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 10.00% | 10.00% |
Unobservable Input, Lack of Marketability | 50.00% | |
Minimum | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 3.00% | 3.00% |
Unobservable Input, Lack of Marketability | 10.00% | 10.00% |
Maximum | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 20.00% | 25.00% |
Unobservable Input, Lack of Marketability | 60.00% | |
Maximum | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 13.00% | 13.00% |
Unobservable Input, Lack of Marketability | 20.00% | 20.00% |
Weighted Average | Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 11.00% | 13.00% |
Unobservable Input, Lack of Marketability | 50.00% | 51.00% |
Weighted Average | Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable Input, Selling Cost | 5.00% | 4.00% |
Unobservable Input, Lack of Marketability | 11.00% | 12.00% |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Financial Assets: | |||
Cash and due from banks | $ 5,141 | $ 4,969 | [1] |
Interest-bearing deposits | 20,050 | 15,330 | [1] |
Certificates of deposit | 5,456 | 5,735 | [1] |
Federal funds sold | 1,546 | 271 | [1] |
Securities available-for-sale | 54,012 | 54,090 | [1] |
Restricted securities | 2,422 | 2,731 | [1] |
Loans, net | 347,755 | 343,323 | [1] |
Loans held for sale | 2,425 | 270 | [1] |
Accrued interest receivable | 1,270 | 1,318 | [1] |
Mortgage servicing rights | 620 | 658 | |
Financial Liabilities: | |||
Non-interest-bearing liabilities | 74,157 | 65,842 | [1] |
Savings and other interest-bearing deposits | 177,075 | 166,628 | [1] |
Time deposits | 127,797 | 127,388 | [1] |
Securities sold under repurchase agreements | 8,182 | 7,161 | [1] |
FHLB advances | 30,000 | 40,000 | [1] |
Subordinated debt | 6,852 | 6,844 | [1] |
Accrued interest payable | 331 | 318 | |
Financial Assets: | |||
Cash and due from banks | 5,141 | 4,969 | |
Interest-bearing deposits | 20,050 | 15,330 | |
Certificates of deposit | 5,456 | 5,735 | |
Federal funds sold | 1,546 | 271 | |
Securities available-for-sale | 54,012 | 54,090 | [1] |
Restricted securities | 2,422 | 2,731 | |
Loans, net | 356,898 | 347,500 | |
Loans held for sale | 2,553 | 270 | |
Accrued interest receivable | 1,270 | 1,318 | |
Mortgage servicing rights | 620 | 658 | [1] |
Financial Liabilities: | |||
Non-interest-bearing liabilities | 74,157 | 65,842 | |
Savings and other interest-bearing deposits | 177,075 | 166,628 | |
Time deposits | 129,326 | 127,433 | |
Securities sold under repurchase agreements | 8,182 | 7,161 | |
FHLB advances | 30,813 | 40,855 | |
Subordinated debt | 7,000 | 7,000 | |
Accrued interest payable | 331 | 318 | |
Fair Value, Inputs, Level 1 | |||
Financial Assets: | |||
Securities available-for-sale | 2,202 | 1,216 | |
Financial Assets: | |||
Cash and due from banks | 5,141 | 4,969 | |
Interest-bearing deposits | 20,050 | 15,330 | |
Federal funds sold | 1,546 | 271 | |
Securities available-for-sale | 2,202 | 1,216 | |
Loans held for sale | 1,301 | ||
Financial Liabilities: | |||
Non-interest-bearing liabilities | 74,157 | 65,842 | |
Fair Value, Inputs, Level 2 | |||
Financial Assets: | |||
Securities available-for-sale | 46,357 | 48,929 | |
Financial Assets: | |||
Certificates of deposit | 5,456 | 5,487 | |
Securities available-for-sale | 46,357 | 48,929 | |
Accrued interest receivable | 1,270 | 1,318 | |
Financial Liabilities: | |||
Savings and other interest-bearing deposits | 177,075 | 166,628 | |
Securities sold under repurchase agreements | 8,182 | 7,161 | |
FHLB advances | 30,813 | 40,855 | |
Accrued interest payable | 331 | 318 | |
Fair Value, Inputs, Level 3 | |||
Financial Assets: | |||
Securities available-for-sale | 5,453 | 3,945 | |
Financial Assets: | |||
Certificates of deposit | 248 | ||
Securities available-for-sale | 5,453 | 3,945 | |
Restricted securities | 2,422 | 2,731 | |
Loans, net | 356,898 | 347,500 | |
Loans held for sale | 1,252 | 270 | |
Mortgage servicing rights | 620 | 658 | |
Financial Liabilities: | |||
Time deposits | 129,326 | 127,433 | |
Subordinated debt | $ 7,000 | $ 7,000 | |
[1] | Derived from Audited December 31, 2015 Financial Statements |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income - Balances in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | $ (445) | $ (720) | $ (776) | [1] | $ (921) |
Change in net unrealized holding losses on securities, before reclassification, net of tax expense | 255 | (372) | 590 | (174) | |
Reclassification for previously unrealized net gains recognized in income, net of tax expense (benefit) | (69) | (4) | (73) | (1) | |
Ending Balance | (259) | (1,096) | (259) | (1,096) | |
Net Unrealized Gains (Losses) on Securities | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | 438 | 246 | 107 | 45 | |
Change in net unrealized holding losses on securities, before reclassification, net of tax expense | 255 | (372) | 590 | (174) | |
Reclassification for previously unrealized net gains recognized in income, net of tax expense (benefit) | (69) | (4) | (73) | (1) | |
Ending Balance | 624 | (130) | 624 | (130) | |
Pension and Post employment costs | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Beginning balance | (883) | (966) | (883) | (966) | |
Ending Balance | $ (883) | $ (966) | $ (883) | $ (966) | |
[1] | Derived from Audited December 31, 2015 Financial Statements |
Accumulated Other Comprehensi68
Accumulated Other Comprehensive Income - Balances in Accumulated Other Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized holding losses arising during the period, tax expense | $ 130 | $ (192) | $ 303 | $ (90) |
Reclassification for previously unrealized net gains recognized in income,tax expense (benefit) | 35 | 2 | 37 | 1 |
Net Unrealized Gains (Losses) on Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Unrealized holding losses arising during the period, tax expense | 130 | (192) | 303 | (90) |
Reclassification for previously unrealized net gains recognized in income,tax expense (benefit) | $ 35 | $ 2 | $ 37 | $ 1 |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Income - Reclassification of Unrealized (Losses) Gains and Impairments on Securities (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains on sale of securities available-for-securities | $ 104 | $ 6 | $ 110 | $ 2 |
Tax expense | (190) | (56) | (343) | (152) |
Net Unrealized Gains (Losses) on Securities | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains on sale of securities available-for-securities | 104 | 6 | 110 | 2 |
Tax expense | (35) | (2) | (37) | (1) |
Impact on net income | $ 69 | $ 4 | $ 73 | $ 1 |