Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 05, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | FIRST NATIONAL COMMUNITY BANCORP INC | |
Entity Central Index Key | 1,035,976 | |
Trading Symbol | fncb | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 16,590,292 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 15,847 | $ 19,544 |
Interest-bearing deposits in other banks | 1,825 | 1,539 |
Total cash and cash equivalents | 17,672 | 21,083 |
Securities available for sale, at fair value | 262,190 | 253,773 |
Stock in Federal Home Loan Bank of Pittsburgh, at cost | 5,219 | 6,344 |
Loans held for sale | 563 | 683 |
Loans, net of allowance for loan and lease losses of $8,559 and $8,790 | 725,161 | 724,926 |
Bank premises and equipment, net | 10,793 | 11,193 |
Accrued interest receivable | 2,511 | 2,475 |
Intangible assets | 55 | 137 |
Bank-owned life insurance | 29,670 | 29,381 |
Other real estate owned | 1,628 | 3,154 |
Net deferred tax assets | 23,327 | 27,807 |
Other assets | 8,749 | 9,662 |
Total assets | 1,087,538 | 1,090,618 |
Liabilities | ||
Demand (non-interest-bearing) | 144,082 | 154,531 |
Interest-bearing | 691,751 | 667,015 |
Total deposits | 835,833 | 821,546 |
Federal Home Loan Bank of Pittsburgh advances | 120,771 | 135,802 |
Subordinated debentures | 14,000 | 14,000 |
Junior subordinated debentures | 10,310 | 10,310 |
Total borrowed funds | 145,081 | 160,112 |
Accrued interest payable | 311 | 11,165 |
Other liabilities | 10,813 | 11,617 |
Total liabilities | 992,038 | 1,004,440 |
Shareholders' equity | ||
Preferred shares ($1.25 par) | ||
Common shares ($1.25 par) | 20,734 | 20,643 |
Additional paid-in capital | 62,210 | 62,059 |
Retained earnings | 5,820 | 3,714 |
Accumulated other comprehensive income (loss) | 6,736 | (238) |
Total shareholders' equity | 95,500 | 86,178 |
Total liabilities and shareholders’ equity | $ 1,087,538 | $ 1,090,618 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Loans, allowance for loan and lease losses | $ 8,559 | $ 8,790 |
Preferred shares, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Preferred shares, authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred shares, issued (in shares) | 0 | 0 |
Preferred shares, outstanding (in shares) | 0 | 0 |
Common shares, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common shares, authorized (in shares) | 50,000,000 | 50,000,000 |
Common shares, issued (in shares) | 16,586,868 | 16,514,245 |
Common shares, outstanding (in shares) | 16,586,868 | 16,514,245 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income | ||||
Interest and fees on loans | $ 7,032 | $ 6,475 | $ 14,001 | $ 12,947 |
Interest and dividends on securities: | ||||
U.S. government agencies | 900 | 1,012 | 1,830 | 1,983 |
State and political subdivisions, tax-free | 11 | 22 | 21 | 72 |
State and political subdivisions, taxable | 624 | 97 | 1,159 | 123 |
Other securities | 94 | 82 | 190 | 239 |
Total interest and dividends on securities | 1,629 | 1,213 | 3,200 | 2,417 |
Interest on interest-bearing deposits in other banks | 2 | 11 | 6 | 32 |
Total interest income | 8,663 | 7,699 | 17,207 | 15,396 |
Interest expense | ||||
Interest on deposits | 663 | 643 | 1,305 | 1,326 |
Interest on borrowed funds: | ||||
Interest on Federal Home Loan Bank of Pittsburgh advances | 167 | 119 | 315 | 239 |
Interest on subordinated debentures | 159 | 565 | 318 | 1,128 |
Interest on junior subordinated debentures | 61 | 51 | 118 | 100 |
Total interest on borrowed funds | 387 | 735 | 751 | 1,467 |
Total interest expense | 1,050 | 1,378 | 2,056 | 2,793 |
Net interest income before provision (credit) for loan and lease losses | 7,613 | 6,321 | 15,151 | 12,603 |
Provision (credit) for loan and lease losses | 396 | 345 | 1,092 | (149) |
Net interest income after provision (credit) for loan and lease losses | 7,217 | 5,976 | 14,059 | 12,752 |
Non-interest income | ||||
Deposit service charges | 717 | 745 | 1,418 | 1,419 |
Net gain on the sale of securities | 857 | 74 | 960 | 2,298 |
Net gain on the sale of mortgage loans held for sale | 71 | 16 | 139 | 56 |
Net gain (loss) on the sale of other real estate owned | 2 | 11 | (3) | 16 |
Loan-related fees | 95 | 106 | 202 | 196 |
Income from bank-owned life insurance | 143 | 135 | 289 | 270 |
Legal settlements | 184 | 184 | ||
Other | 209 | 274 | 420 | 525 |
Total non-interest income | 2,094 | 1,545 | 3,425 | 4,964 |
Non-interest expense | ||||
Salaries and employee benefits | 3,589 | 3,203 | 7,103 | 6,342 |
Occupancy expense | 329 | 532 | 822 | 1,165 |
Equipment expense | 425 | 442 | 848 | 826 |
Advertising expense | 172 | 159 | 265 | 249 |
Data processing expense | 494 | 501 | 1,017 | 949 |
Regulatory assessments | 193 | 99 | 430 | 508 |
Bank shares tax | 252 | 218 | 493 | 435 |
Expense of other real estate owned | 194 | 147 | 240 | 247 |
Legal expense | 86 | 88 | 206 | 251 |
Professional fees | 272 | 286 | 559 | 587 |
Insurance expense | 125 | 202 | 253 | 400 |
Other operating expenses | 894 | 803 | 1,593 | 1,503 |
Total non-interest expense | 7,025 | 6,680 | 13,829 | 13,462 |
Income before income taxes | 2,286 | 841 | 3,655 | 4,254 |
Income tax expense (benefit) | 661 | 22 | 887 | (40) |
Net income | $ 1,625 | $ 819 | $ 2,768 | $ 4,294 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.10 | $ 0.05 | $ 0.17 | $ 0.26 |
Diluted (in dollars per share) | 0.10 | 0.05 | 0.17 | 0.26 |
Cash dividends declared, per share (in dollars per share) | $ 0.02 | $ 0.04 | ||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | ||||
Basic (in shares) | 16,549,169 | 16,500,945 | 16,534,464 | 16,495,558 |
Diluted (in shares) | 16,549,169 | 16,500,945 | 16,534,464 | 16,495,558 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income | $ 1,625 | $ 819 | $ 2,768 | $ 4,294 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on securities available for sale | 3,818 | (2,482) | 11,527 | 996 |
Taxes | (1,298) | 844 | (3,919) | (338) |
Net of tax amount | 2,520 | (1,638) | 7,608 | 658 |
Reclassification adjustment for gains included in net income | (857) | (74) | (960) | (2,298) |
Taxes | 291 | 25 | 326 | 781 |
Net of tax amount | (566) | (49) | (634) | (1,517) |
Total other comprehensive income (loss) | 1,954 | (1,687) | 6,974 | (859) |
Comprehensive income (loss) | $ 3,579 | $ (868) | $ 9,742 | $ 3,435 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balances (in shares) at Dec. 31, 2014 | 16,484,419 | ||||
Balances at Dec. 31, 2014 | $ 20,605 | $ 61,781 | $ (32,126) | $ 1,138 | $ 51,398 |
Net income for the period | 4,294 | 4,294 | |||
Common shares issued under long-term incentive compensation plan (in shares) | 16,526 | ||||
Common shares issued under long-term incentive compensation plan | $ 21 | (21) | |||
Restricted stock awards | 110 | 110 | |||
Other comprehensive income (loss), net of tax | (859) | (859) | |||
Balances (in shares) at Jun. 30, 2015 | 16,500,945 | ||||
Balances at Jun. 30, 2015 | $ 20,626 | 61,870 | (27,832) | 279 | 54,943 |
Balances (in shares) at Dec. 31, 2015 | 16,514,245 | ||||
Balances at Dec. 31, 2015 | $ 20,643 | 62,059 | 3,714 | (238) | 86,178 |
Net income for the period | 2,768 | 2,768 | |||
Common shares issued under long-term incentive compensation plan (in shares) | 52,848 | ||||
Common shares issued under long-term incentive compensation plan | $ 66 | (66) | |||
Restricted stock awards | 129 | 129 | |||
Other comprehensive income (loss), net of tax | 6,974 | 6,974 | |||
Balances (in shares) at Jun. 30, 2016 | 16,586,868 | ||||
Balances at Jun. 30, 2016 | $ 20,734 | 62,210 | 5,820 | $ 6,736 | 95,500 |
Cash dividends declared, $0.04 per share | $ (662) | (662) | |||
Common shares issued through dividend reinvestment / optional cash purchase plan (in shares) | 19,775 | ||||
Common shares issued through dividend reinvestment / optional cash purchase plan | $ 25 | $ 88 | $ 113 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
AOCI Attributable to Parent [Member] | ||
Other comprehensive income (loss), tax | $ 3,593 | $ (443) |
Retained Earnings [Member] | ||
Cash dividends declared, per share (in dollars per share) | $ 0.04 | |
Cash dividends declared, per share (in dollars per share) | $ 0.04 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities: | ||
Net income | $ 2,768,000 | $ 4,294,000 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Investment securities amortization, net | 578,000 | 902,000 |
Equity in trust | (4,000) | (3,000) |
Depreciation and amortization | 1,340,000 | 786,000 |
Stock-based compensation expense | 129,000 | 110,000 |
Provision (credit) for loan and lease losses | 1,092,000 | (149,000) |
Valuation adjustment for off-balance sheet commitments | (49,000) | (56,000) |
Gain on the sale of available-for-sale securities | (960,000) | (2,298,000) |
Gain on the sale of loans held for sale | (139,000) | (56,000) |
Loss (gain) on the sale of other real estate owned | 3,000 | (16,000) |
Valuation adjustment of other real estate owned | 138,000 | 130,000 |
Income from bank-owned life insurance | (289,000) | (270,000) |
Proceeds from the sale of loans held for sale | 3,449,000 | 1,559,000 |
Funds used to originate loans held for sale | (3,189,000) | (1,038,000) |
Deferred income tax expense | 887,000 | |
Increase in interest receivable | (36,000) | (99,000) |
Decrease in prepaid expenses and other assets | 862,000 | 202,000 |
(Decrease) increase in interest payable | (10,854,000) | 1,082,000 |
Decrease in accrued expenses and other liabilities | (763,000) | (2,097,000) |
Total adjustments | (7,805,000) | (1,311,000) |
Net cash (used in) provided by operating activities | (5,037,000) | 2,983,000 |
Cash flows from investing activities: | ||
Maturities, calls and principal payments of available-for-sale securities | 2,978,000 | 5,509,000 |
Proceeds from the sale of securities available for sale | 32,588,000 | 73,460,000 |
Purchases of securities available for sale | (33,035,000) | (86,425,000) |
Redemption of the stock of the Federal Home Loan Bank of Pittsburgh | 1,125,000 | 119,000 |
Net increase in loans to customers | (2,137,000) | (14,487,000) |
Proceeds from the sale of other real estate owned | 1,630,000 | 552,000 |
Proceeds from the sale of bank premises and equipment | 2,000 | |
Purchases of bank premises and equipment | (230,000) | (674,000) |
Net cash provided by (used in) investing activities | 2,919,000 | (21,944,000) |
Cash flows from financing activities: | ||
Net increase in deposits | 14,287,000 | 70,032,000 |
Net proceeds from Federal Home Loan Bank of Pittsburgh advances - overnight | 13,780,000 | |
Proceeds from Federal Home Loan Bank of Pittsburgh advances - term | 25,307,000 | 65,565,000 |
Repayment of Federal Home Loan Bank of Pittsburgh advances - term | (54,118,000) | (68,988,000) |
Principal reduction on subordinated debentures | (11,000,000) | |
Proceeds from issuance of common shares | 113,000 | |
Cash dividends paid | (662,000) | |
Net cash (used in) provided by financing activities | (1,293,000) | 55,609,000 |
Net (decrease) increase in cash and cash equivalents | (3,411,000) | 36,648,000 |
Cash and cash equivalents at beginning of period | 21,083,000 | 35,667,000 |
Cash and cash equivalents at end of period | 17,672,000 | 72,315,000 |
Supplemental cash flow information | ||
Interest | 12,910,000 | 1,711,000 |
Income taxes | 22,000 | |
Principal balance of loans transferred to other real estate owned | 237,000 | 149,000 |
Change in deferred gain on sale of other real estate owned | $ 8,000 | $ 2,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1. Basis of Presentation On June 30, 2016, First National Community Bancorp, Inc., the parent company of First National Community Bank, announced that following receipt of required regulatory approvals from the Pennsylvania Department of Banking and Securities, First National Community Bank had completed a charter conversion from a national bank to a Pennsylvania state bank and, as a result of the conversion, First National Community Bank changed its legal name to FNCB Bank. Both the charter conversion and legal name change became effective June 30, 2016. The consolidated financial statements are comprised of the accounts of First National Community Bancorp, Inc., and its wholly owned subsidiary, FNCB Bank (the “Bank”), as well as the Bank’s wholly owned subsidiaries (collectively, “FNCB”). The accounting and reporting policies of FNCB conform to accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and accompanying notes required by GAAP for complete financial statements. In the opinion of management, all adjustments necessary for a fair presentation of the financial position and the results of operations for the periods presented have been included in the consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation. Prior period amounts have been reclassified when necessary to conform to the current period’s presentation. These reclassifications did not have an impact on the operating results or financial position of FNCB. The operating results and financial position of FNCB for the six months ended June 30, 2016, may not be indicative of future results of operations and financial position. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to change in the near term are the allowance for loan and lease losses (“ALLL”), investment security valuations, the evaluation of investment securities and other real estate owned (“OREO”) for impairment, and the evaluation of deferred income taxes. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in FNCB’s audited financial statements, included in the Annual Report filed on Form 10-K as of and for the year ended December 31, 2015. |
Note 2 - New Authoritative Acco
Note 2 - New Authoritative Accounting Guidance | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 2. New Authoritative Accounting Guidance Accounting Guidance to be Adopted in Future Periods Accounting Standard Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): “Measurement of Credit Losses on Financial Instruments,” replaces the current loss impairment methodology under GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates in an effort to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit. Specifically, the amendments in this Update will require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments in this update affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income, including such financial assets as loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. On June 17, 2016, the four federal financial institution regulatory agencies (the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration and the Office of the Comptroller of the Currency), issued a joint statement to provide information about ASU 2016-13 and the initial supervisory views regarding the implementation of the new standard. The joint statement applies to all banks, savings association, credit union and financial institution holding companies, regardless of asset size. The statement details the key elements of, and the steps necessary for, the successful transition to the new accounting standard. In addition, the statement notifies financial institutions that because the appropriate allowance levels are institution-specific amounts, the agencies will not establish benchmark targets or ranges for the change in institutions’ allowance levels upon adoption of the ASU, or for allowance levels going forward. Due to the importance of ASU 2016-13, the agencies encourage financial institutions to begin planning and preparing for the transition and state that senior management, under the oversight of the board of directors, should work closely with staff in their accounting, lending, credit risk management, internal audit, and information technology functions during the transition period leading up to, and well after, adoption. ASU 2016-13 is effective for public business entities that are U.S. Securities and Exchange Commission (SEC) filers for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. All entities may adopt the amendments in this Update earlier as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Accordingly, FNCB will adopt this guidance on January 1, 2020, and is currently evaluating the effect this guidance may have on its operating results or financial position. Refer to Note 2 to FNCB’s consolidated financial statements included in the 2015 Annual Report on Form 10-K and the Quarterly Report on Form 10-Q for the period ended March 31, 2016 for a discussion of additional accounting guidance applicable to FNCB that will be adopted in future periods. |
Note 3 - Securities
Note 3 - Securities | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 3 . Securities The following tables present the amortized cost, gross unrealized gains and losses, and the fair value of FNCB’s securities at June 30, 2016 and December 31, 2015: June 30, 2016 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair (in thousands) Cost Gains Losses Value Available-for-sale: Obligations of U.S. government agencies $ 12,159 $ 565 $ - $ 12,724 Obligations of state and political subdivisions 97,248 4,958 - 102,206 U.S. government/government-sponsored agencies: Collateralized mortgage obligations - residential 20,339 675 1 21,013 Collateralized mortgage obligations - commercial 99,619 3,242 - 102,861 Residential mortgage-backed securities 17,936 821 - 18,757 Corporate debt securities 500 - 80 420 Negotiable certificates of deposit 3,173 75 - 3,248 Equity securities 1,010 - 49 961 Total available-for-sale securities $ 251,984 $ 10,336 $ 130 $ 262,190 December 31, 2015 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair (in thousands) Cost Gains Losses Value Available-for-sale: Obligations of U.S. government agencies $ 43,787 $ 256 $ - $ 44,043 Obligations of state and political subdivisions 75,401 428 422 75,407 U.S. government/government-sponsored agencies: Collateralized mortgage obligations - residential 22,162 116 9 22,269 Collateralized mortgage obligations - commercial 89,900 124 601 89,423 Residential mortgage-backed securities 18,201 58 161 18,098 Corporate debt securities 500 - 77 423 Negotiable certificates of deposit 3,173 - 11 3,162 Equity securities 1,010 - 62 948 Total available-for-sale securities $ 254,134 $ 982 $ 1,343 $ 253,773 At June 30, 2016 and December 31, 2015, securities with a carrying amount of $260.8 million and $252.4 million, respectively, were pledged as collateral to secure public deposits and for other purposes. The following table shows the amortized cost and approximate fair value of FNCB’s available-for-sale debt securities at June 30, 2016 using contractual maturities. Expected maturities will differ from contractual maturity because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Because collateralized mortgage obligations and residential mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary. June 30, 2016 Amortized Fair (in thousands) Cost Value Amounts maturing in: One year or less $ - $ - After one year through five years 21,761 22,627 After five years through ten years 87,033 91,578 After ten years 4,286 4,393 Collateralized mortgage obligations 119,958 123,874 Residential mortgage-backed securities 17,936 18,757 Total $ 250,974 $ 261,229 Gross proceeds from the sale of available-for-sale securities were $26.4 million and $32.6 million for the three and six months ended June 30, 2016, respectively, with gross gains of $857 thousand and $960 thousand, respectively realized upon the sales. There were no losses realized upon the sales for the three and six months ended June 30, 2016. Gross proceeds from the sale of available-for-sale securities were $37.6 million and $73.5 million, respectively, for the three and six months ended June 30, 2015, with gross gains of $78 thousand and $2.3 million, respectively, realized upon the sale. FNCB realized gross losses of $4 thousand upon the sales for both the three and six months ended June 30, 2015. The following tables present the number of, fair value and gross unrealized losses of available-for-sale securities with unrealized losses at June 30, 2016 and December 31, 2015: June 30, 2016 Less than 12 Months 12 Months or Greater Total Number Gross Number Gross Number Gross of Fair Unrealized of Fair Unrealized of Fair Unrealized (dollars in thousands) Securities Value Losses Securities Value Losses Securities Value Losses Obligations of US government agencies - $ - $ - - $ - $ - - $ - $ - Obligations of state and policitical subdivisions - - - - - - - - - U.S. government/government-sponsored agencies: Collateralized mortgage obligations - residential - - - 2 335 1 2 335 1 Collateralized mortgage obligations - commercial - - - - - - - - - Residential mortgage-backed securities - - - - - - - - - Corporate debt securities - - - 1 420 80 1 420 80 Negotiable certificates of deposit - - - - - - - - - Equity securities - - - 1 951 49 1 951 49 Total - $ - $ - 4 $ 1,706 $ 130 4 $ 1,706 $ 130 December 31, 2015 Less than 12 Months 12 Months or Greater Total Number Gross Number Gross Number Gross of Fair Unrealized of Fair Unrealized of Fair Unrealized (dollars in thousands) Securities Value Losses Securities Value Losses Securities Value Losses Obligations of U.S. government agencies - $ - $ - - $ - $ - - $ - $ - Obligations of state and policitical subdivisions 31 33,022 419 1 264 3 32 33,286 422 U.S. government/government-sponsored agencies: Collateralized mortgage obligations - residential 4 5,738 9 - - - 4 5,738 9 Collateralized mortgage obligations - commercial 16 67,969 601 - - - 16 67,969 601 Residential mortgage-backed securities 7 16,779 161 - - - 7 16,779 161 Corporate debt securities - - - 1 423 77 1 423 77 Negotiable certificates of deposit 12 2,913 11 - - - 12 2,913 11 Equity securities - - - 1 938 62 1 938 62 Total 70 $ 126,421 $ 1,201 3 $ 1,625 $ 142 73 $ 128,046 $ 1,343 Management evaluates individual securities in an unrealized loss position quarterly for other than temporary impairment (“OTTI”). As part of its evaluation, management considers, among other things, the length of time a security’s fair value is less than its amortized cost, the severity of decline, any credit deterioration of the issuer, whether or not management intends to sell the security, and whether it is more likely than not that FNCB will be required to sell the security prior to recovery of its amortized cost. There were four securities in an unrealized loss position at June 30, 2016, including two securities issued by a U.S. government-sponsored agency, one corporate bond, and one equity security. All four securities were in an unrealized loss position for greater than 12 months. Management performed a review of the fair values of all securities in an unrealized loss position as of June 30, 2016 and determined that movements in the fair values of the securities were consistent with the change in market interest rates. In addition, as part of its review, management noted that there was no material change in the credit quality of any of the issuers or other events or circumstances that may cause a significant adverse effect on the fair value of these securities. Moreover, to date, FNCB has received all scheduled principal and interest payments and expects to fully collect all future contractual principal and interest payments on all securities in an unrealized loss position at June 30, 2016. FNCB does not intend to sell the securities nor is it more likely than not that it will be required to sell the securities prior to recovery of their amortized cost. Based on the results of its review and considering the attributes of these debt and equity securities, management concluded that the individual unrealized losses were temporary and OTTI did not exist at June 30, 2016. Investments in FHLB of Pittsburgh and Federal Reserve Bank of Philadelphia (“FRB”) stock, which have limited marketability, are carried at cost and totaled $6.6 million and $7.7 million at June 30, 2016 and December 31, 2015, respectively. FRB stock of $1.3 million is included in Other Assets at June 30, 2016 and December 31, 2015. Management noted no indicators of impairment for the FHLB of Pittsburgh and FRB stock at June 30, 2016. |
Note 4 - Loans
Note 4 - Loans | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4 . L oans The following table summarizes loans receivable, net, by category at June 30, 2016 and December 31, 2015: June 30, December 31, (in thousands) 2016 2015 Residential real estate $ 136,483 $ 130,696 Commercial real estate 244,282 245,198 Construction, land acquisition and development 23,261 30,843 Commercial and industrial 153,990 149,826 Consumer 125,321 128,533 State and political subdivisions 48,037 46,056 Total loans, gross 731,374 731,152 Unearned income (102 ) (98 ) Net deferred loan costs 2,448 2,662 Allowance for loan and lease losses (8,559 ) (8,790 ) Loans, net $ 725,161 $ 724,926 FNCB has granted loans, letters of credit and lines of credit to certain of its executive officers and directors as well as to certain related parties of executive officers and directors. For more information about related party transactions, refer to Note 6 – “Related Party Transactions” to these consolidated financial statements. FNCB originates one- to four-family mortgage loans for sale in the secondary market. During the three months and six months ended June 30, 2016, one-to four-family mortgages sold on the secondary market were $1.6 million and $3.3 million, respectively. FNCB retains servicing rights on these mortgages. At June 30, 2016 and December 31, 2015, there were $563 thousand and $683 thousand in one-to four-family residential mortgage loans held for sale, respectively. FNCB does not have any lending programs commonly referred to as subprime lending. Subprime lending generally targets borrowers with weakened credit histories typically characterized by payment delinquencies, previous charge-offs, judgments, and bankruptcies, or borrowers with questionable repayment capacity as evidenced by low credit scores or high debt-burden ratios. There were no material changes to the risk characteristics of FNCB’s loan segments, loan classification and credit grading systems and methodology for determining the adequacy of the ALLL during the six months ended June 30, 2016. Refer to Note 2 to FNCB’s consolidated financial statements included in the 2015 Annual Report on Form 10-K for information about the risk characteristics related to FNCB’s loan segments, loan classification and credit grading systems and methodology for determining the adequacy of the ALLL. Each quarter, management evaluates the ALLL and adjusts the ALLL as appropriate through a provision or credit for loan losses. While management uses the best information available to make evaluations, future adjustments to the ALLL may be necessary if conditions differ substantially from the information used in making the evaluations. In addition, as an integral part of its examination process, bank regulators periodically review the ALLL. These regulators may require FNCB to adjust the ALLL based on their analysis of information available at the time of examination. The following table summarizes activity in the ALLL by loan category for the three and six months ended June 30, 2016 and 2015: Real Estate Construction, Land Acquisition Commercial State and Residential Commercial and and Political (in thousands) Real Estate Real Estate Development Industrial Consumer Subdivisions Unallocated Total Three months ended June 30, 2016: Allowance for loan losses: Beginning balance, April 1, 2016 $ 1,210 $ 3,291 $ 653 $ 1,322 $ 1,379 $ 780 $ - $ 8,635 Charge-offs - - - (496 ) (213 ) - - (709 ) Recoveries 1 2 9 118 107 - - 237 Provisions (credits) (112 ) (198 ) 55 621 77 (47 ) - 396 Ending balance, June 30, 2016 $ 1,099 $ 3,095 $ 717 $ 1,565 $ 1,350 $ 733 $ - $ 8,559 Three months ended June 30, 2015: Allowance for loan losses: Beginning balance, April 1, 2015 $ 1,531 $ 4,331 $ 764 $ 1,998 $ 1,698 $ 583 $ 39 $ 10,944 Charge-offs (1 ) (912 ) (6 ) (72 ) (201 ) - - (1,192 ) Recoveries 5 16 - 102 108 - - 231 Provisions (credits) (51 ) 606 20 (150 ) 38 (79 ) (39 ) 345 Ending balance, June 30, 2015 $ 1,484 $ 4,041 $ 778 $ 1,878 $ 1,643 $ 504 $ - $ 10,328 Six months ended June 30, 2016: Allowance for loan losses: Beginning balance, January 1, 2016 $ 1,333 $ 3,346 $ 853 $ 1,205 $ 1,494 $ 485 $ 74 $ 8,790 Charge-offs (24 ) (251 ) - (1,064 ) (518 ) - - (1,857 ) Recoveries 2 3 9 212 308 - - 534 Provisions (credits) (212 ) (3 ) (145 ) 1,212 66 248 (74 ) 1,092 Ending balance, June 30, 2016 $ 1,099 $ 3,095 $ 717 $ 1,565 $ 1,350 $ 733 $ - $ 8,559 Six months ended June 30, 2015: Allowance for loan losses: Beginning balance, January 1, 2015 $ 1,772 $ 4,663 $ 665 $ 2,104 $ 1,673 $ 598 $ 45 $ 11,520 Charge-offs (69 ) (912 ) (6 ) (142 ) (340 ) - - (1,469 ) Recoveries 11 18 - 167 230 - - 426 Provisions (credits) (230 ) 272 119 (251 ) 80 (94 ) (45 ) (149 ) Ending balance, June 30, 2015 $ 1,484 $ 4,041 $ 778 $ 1,878 $ 1,643 $ 504 $ - $ 10,328 The following table represents the allocation of the ALLL and the related loan balance, by loan category, disaggregated based on the impairment methodology at June 30, 2016 and December 31, 2015: Real Estate Construction, Land Acquisition Commercial State and Residential Commercial and and Political (in thousands) Real Estate Real Estate Development Industrial Consumer Subdivisions Unallocated Total June 30, 2016 Allowance for loan losses: Individually evaluated for impairment $ 4 $ 269 $ - $ - $ 1 $ - $ - $ 274 Collectively evaluated for impairment 1,095 2,826 717 1,565 1,349 733 - 8,285 Total $ 1,099 $ 3,095 $ 717 $ 1,565 $ 1,350 $ 733 $ - $ 8,559 Loans receivable: Individually evaluated for impairment $ 2,108 $ 3,047 $ 398 $ 283 $ 300 $ - $ - $ 6,136 Collectively evaluated for impairment 134,375 241,235 22,863 153,707 125,021 48,037 - 725,238 Total $ 136,483 $ 244,282 $ 23,261 $ 153,990 $ 125,321 $ 48,037 $ - $ 731,374 December 31, 2015 Allowance for loan losses: Individually evaluated for impairment $ 92 $ 287 $ 1 $ - $ 1 $ - $ - $ 381 Collectively evaluated for impairment 1,241 3,059 852 1,205 1,493 485 74 8,409 Total $ 1,333 $ 3,346 $ 853 $ 1,205 $ 1,494 $ 485 $ 74 $ 8,790 Loans receivable: Individually evaluated for impairment $ 2,930 $ 3,831 $ 646 $ 203 $ 351 $ - $ - $ 7,961 Collectively evaluated for impairment 127,766 241,367 30,197 149,623 128,182 46,056 - 723,191 Total $ 130,696 $ 245,198 $ 30,843 $ 149,826 $ 128,533 $ 46,056 $ - $ 731,152 Credit Quality Indicators – Commercial Loans Management continuously monitors the credit quality of FNCB’s commercial loans by regularly reviewing certain credit quality indicators. Management utilizes credit risk ratings as the key credit quality indicator for evaluating the credit quality of FNCB’s loan receivables. FNCB’s loan rating system assigns a degree of risk to commercial loans based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. Management analyzes these non-homogeneous loans individually by grading the loans as to credit risk and probability of collection for each type of loan. Commercial and industrial loans include commercial indirect auto loans which are not individually risk rated, and construction, land acquisition and development loans include residential construction loans which are also not individually risk rated. These loans are monitored on a pool basis due to their homogeneous nature as described in “Credit Quality Indicators – Other Loans” below. FNCB risk rates certain residential real estate loans and consumer loans that are part of a larger commercial relationship using its credit grading system as described in “Credit Quality Indicators – Commercial Loans.” The grading system contains the following basic risk categories: 1. Minimal Risk 2. Above Average Credit Quality 3. Average Risk 4. Acceptable Risk 5. Pass - Watch 6. Special Mention 7. Substandard - Accruing 8. Substandard - Non-Accrual 9. Doubtful 10. Loss This analysis is performed on a quarterly basis using the following definitions for risk ratings: Pass - Assets rated 1 through 5 are considered pass ratings. These assets show no current or potential problems and are considered fully collectible. All such loans are considered collectively for ALLL calculation purposes. However, accruing TDRs that have been performing for an extended period of time, do not represent a higher risk of loss, and have been upgraded to a pass rating are evaluated individually for impairment. Special Mention – Assets classified as special mention do not currently expose FNCB to a sufficient degree of risk to warrant an adverse classification but do possess credit deficiencies or potential weaknesses deserving close attention. Special Mention assets have a potential weakness or pose an unwarranted financial risk which, if not corrected, could weaken the asset and increase risk in the future. Substandard - Assets classified as substandard have well defined weaknesses based on objective evidence, and are characterized by the distinct possibility that FNCB will sustain some loss if the deficiencies are not corrected. Doubtful - Assets classified as doubtful have all of the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses present make collection or liquidation in full highly questionable and improbable based on current circumstances. Loss - Assets classified as loss are those considered uncollectible and of such little value that their continuance as assets is not warranted. Credit Quality Indicators – Other Loans Certain residential real estate loans, consumer loans, and commercial indirect auto loans are monitored on a pool basis due to their homogeneous nature. Loans that are delinquent 90 days or more are placed on non-accrual status unless collection of the loan is in process and reasonably assured. FNCB utilizes accruing versus non-accrual status as the credit quality indicator for these loan pools. The following tables present the recorded investment in loans receivable by loan category and credit quality indicator at June 30, 2016 and December 31, 2015: Credit Quality Indicators June 30, 2016 Commercial Loans Other Loans Special Subtotal Accruing Non-accrual Subtotal Total (in thousands) Pass Mention Substandard Doubtful Loss Commercial Loans Loans Other Loans Residential real estate $ 24,438 $ 383 $ 533 $ - $ - $ 25,354 $ 110,336 $ 793 $ 111,129 $ 136,483 Commercial real estate 230,718 6,267 7,297 - - 244,282 - - - 244,282 Construction, land acquisition and development 14,497 352 4,620 - - 19,469 3,786 6 3,792 23,261 Commercial and industrial 146,271 858 2,180 - - 149,309 4,681 - 4,681 153,990 Consumer 2,873 2 38 - - 2,913 122,224 184 122,408 125,321 State and political subdivisions 41,754 5,891 392 - - 48,037 - - - 48,037 Total $ 460,551 $ 13,753 $ 15,060 $ - $ - $ 489,364 $ 241,027 $ 983 $ 242,010 $ 731,374 Credit Quality Indicators December 31, 2015 Commercial Loans Other Loans Special Subtotal Accruing Non-accrual Subtotal Total (in thousands) Pass Mention Substandard Doubtful Loss Commercial Loans Loans Other Loans Residential real estate $ 21,018 $ 449 $ 984 $ - $ - $ 22,451 $ 107,204 $ 1,041 $ 108,245 $ 130,696 Commercial real estate 225,850 11,356 7,992 - - 245,198 - - - 245,198 Construction, land acquisition and development 23,946 358 5,137 - - 29,441 1,402 - 1,402 30,843 Commercial and industrial 142,242 595 2,209 - - 145,046 4,775 5 4,780 149,826 Consumer 2,747 9 39 - - 2,795 125,392 346 125,738 128,533 State and political subdivisions 45,464 120 472 - - 46,056 - - - 46,056 Total $ 461,267 $ 12,887 $ 16,833 $ - $ - $ 490,987 $ 238,773 $ 1,392 $ 240,165 $ 731,152 Included in loans receivable are loans for which the accrual of interest income has been discontinued due to deterioration in the financial condition of the borrowers. The recorded investment in these non-accrual loans was $2.7 million and $3.8 million at June 30, 2016 and December 31, 2015, respectively. Generally, loans are placed on non-accrual status when they become 90 days or more delinquent, and remain on non-accrual status until they are brought current, have six months of performance under the loan terms, and factors indicating reasonable doubt about the timely collection of payments no longer exist. Therefore, loans may be current in accordance with their loan terms, or may be less than 90 days delinquent and still be on a non-accrual status. There were no loans past due 90 days or more and still accruing at June 30, 2016 and December 31, 2015. The following tables present the delinquency status of past due and non-accrual loans at June 30, 2016 and December 31, 2015: June 30, 2016 Delinquency Status 0-29 Days 30-59 Days 60-89 Days >/= 90 Days (in thousands) Past Due Past Due Past Due Past Due Total Performing (accruing) loans: Real estate: Residential real estate $ 135,136 $ 285 $ 109 $ - $ 135,530 Commercial real estate 242,608 118 592 - 243,318 Construction, land acquisition and development 22,856 18 90 - 22,964 Total real estate 400,600 421 791 - 401,812 Commercial and industrial 153,315 317 17 - 153,649 Consumer 123,997 908 232 - 125,137 State and political subdivisions 48,037 - - - 48,037 Total performing (accruing) loans 725,949 1,646 1,040 - 728,635 Non-accrual loans: Real estate: Residential real estate 403 3 21 526 953 Commercial real estate 176 - 108 680 964 Construction, land aquisition and development 291 - - 6 297 Total real estate 870 3 129 1,212 2,214 Commercial and industrial - 260 25 56 341 Consumer 68 8 11 97 184 State and political subdivisions - - - - - Total non-accrual loans 938 271 165 1,365 2,739 Total loans receivable $ 726,887 $ 1,917 $ 1,205 $ 1,365 $ 731,374 December 31, 2015 Delinquency Status 0-29 Days 30-59 Days 60-89 Days >/= 90 Days (in thousands) Past Due Past Due Past Due Past Due Total Performing (accruing) loans: Real estate: Residential real estate $ 129,206 $ 51 $ 225 $ - $ 129,482 Commercial real estate 243,168 53 286 - 243,507 Construction, land acquisition and development 30,475 26 - - 30,501 Total real estate 402,849 130 511 - 403,490 Commercial and industrial 149,329 236 66 - 149,631 Consumer 126,760 994 433 - 128,187 State and political subdivisions 46,056 - - - 46,056 Total peforming (accruing) loans 724,994 1,360 1,010 - 727,364 Non-accrual loans: Real estate: Residential real estate 923 99 44 148 1,214 Commercial real estate 1,576 - 115 - 1,691 Construction, land acquisition and development 342 - - - 342 Total real estate 2,841 99 159 148 3,247 Commercial and industrial 98 - - 97 195 Consumer 69 21 3 253 346 State and political subdivisions - - - - - Total non-accrual loans 3,008 120 162 498 3,788 Total loans receivable $ 728,002 $ 1,480 $ 1,172 $ 498 $ 731,152 The following tables present a distribution of the recorded investment, unpaid principal balance and the related allowance for FNCB’s impaired loans, which have been analyzed for impairment under ASC 310, at June 30, 2016 and December 31, 2015. Non-accrual loans, other than TDRs, with balances less than the $100 thousand loan relationship threshold are not evaluated individually for impairment and are accordingly not included in the following tables. However, these loans are evaluated collectively for impairment as homogenous pools in the general allowance under ASC Topic 450. Total non-accrual loans, other than TDRs, with balances less than the $100 thousand loan relationship threshold that were evaluated under ASC Topic 450 amounted to $0.6 million at June 30, 2016 and $0.8 million at December 31, 2015. June 30, 2016 Unpaid Recorded Principal Related (in thousands) Recorded Investment Balance Related Allowance With no allowance recorded: Real estate: Residential real estate $ 815 $ 899 $ - Commercial real estate 1,132 2,154 - Construction, land acquisition and development 398 793 - Total real estate 2,345 3,846 - Commercial and industrial 283 505 - Consumer - - - State and political subdivisions - - - Total impaired loans with no related allowance recorded 2,628 4,351 - With a related allowance recorded: Real estate: Residential real estate 1,293 1,293 4 Commercial real estate 1,915 1,915 269 Construction, land acquisition and development - - - Total real estate 3,208 3,208 273 Commercial and industrial - - - Consumer 300 300 1 State and political subdivisions - - - Total impaired loans with a related allowance recorded 3,508 3,508 274 Total impaired loans: Real estate: Residential real estate 2,108 2,192 4 Commercial real estate 3,047 4,069 269 Construction, land acquisition and development 398 793 - Total real estate 5,553 7,054 273 Commercial and industrial 283 505 - Consumer 300 300 1 State and political subdivisions - - - Total impaired loans $ 6,136 $ 7,859 $ 274 December 31, 2015 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Real estate: Residential real estate $ 1,042 $ 1,138 $ - Commercial real estate 1,850 2,868 - Construction, land acquisition and development 470 844 - Total real estate 3,362 4,850 - Commercial and industrial 124 156 - Consumer - - - State and political subdivisions - - - Total impaired loans with no related allowance recorded 3,486 5,006 - With a related allowance recorded: Real estate: Residential real estate 1,888 1,888 92 Commercial real estate 1,981 1,981 287 Construction, land acquisition and development 176 176 1 Total real estate 4,045 4,045 380 Commercial and industrial 79 79 - Consumer 351 351 1 State and political subdivisions - - - Total impaired loans with a related allowance recorded 4,475 4,475 381 Total impaired loans: Real estate: Residential real estate 2,930 3,026 92 Commercial real estate 3,831 4,849 287 Construction, land acquisition and development 646 1,020 1 Total real estate 7,407 8,895 380 Commercial and industrial 203 235 - Consumer 351 351 1 State and political subdivisions - - - Total impaired loans $ 7,961 $ 9,481 $ 381 The following table presents the average balance and interest income by loan category recognized on impaired loans for the three and six months ended June 30, 2016 and 2015: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Average Balance Interest Income (1) Average Balance Interest Income (1) Average Balance Interest Income (1) Average Balance Interest Income (1) Real estate: Residential real estate $ 2,278 $ 22 $ 2,666 $ 31 $ 2,577 $ 48 $ 2,782 $ 64 Commercial real estate 3,279 23 6,601 28 3,531 46 6,584 58 Construction, land acquisition and development 411 1 343 5 488 4 346 9 Total real estate 5,968 46 9,610 64 6,596 98 9,712 131 Commercial and industrial 343 1 30 - 390 2 30 - Consumer 349 3 357 3 349 6 358 6 State and political subdivisions - - - - - - - - Total impaired loans $ 6,660 $ 50 $ 9,997 $ 67 $ 7,335 $ 106 $ 10,100 $ 137 (1) Interest income represents income recognized on performing TDRs. The additional interest income that would have been earned on non-accrual and restructured loans had these loans performed in accordance with their original terms approximated $59 thousand and $127 thousand for the three and six months ended June 30, 2016, respectively, and $96 thousand and $187 thousand for the three and six months ended June 30, 2015. Troubled Debt Restructured Loans TDRs at June 30, 2016 and December 31, 2015 were $4.9 million and $5.8 million, respectively. Accruing and non-accruing TDRs were $4.0 million and $0.9 million, respectively at June 30, 2016, and $5.0 million and $0.8 million, respectively at December 31, 2015. Approximately $274 thousand and $295 thousand in specific reserves have been established for TDRs as of June 30, 2016 and December 31, 2015, respectively. FNCB was not committed to lend additional funds to any loan classified as a TDR at June 30, 2016. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan, an extension of the maturity date, capitalization of real estate taxes, or a permanent reduction of the recorded investment in the loan. There were no loans modified as TDRs during the six months ended June 30, 2016. The following table shows the pre- and post- modification recorded investment in loans modified as TDRs during the three and six months ended June 30, 2015: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded (dollars in thousands) Contracts Investments Investments Contracts Investments Investments Troubled debt restructurings: Residential real estate 3 $ 154 $ 171 5 $ 810 $ 827 Commercial real estate 1 1,654 742 1 1,654 742 Construction, land acquisition and development - - - 1 96 96 Commercial and industrial - - - - - - Consumer - - - - - - States and political subdivisions - - - - - - Total new troubled debt restructurings 4 $ 1,808 $ 913 7 $ 2,560 $ 1,665 The following table presents the types of modifications made during the three and six months ended June 30, 2015: Three months ended June 30, 2015 Six months ended June 30, 2015 (in thousands) Extension of Term Extension of Term and Capitalization of Taxes Principal Forbearance Total Modifications Extension of Term Extension of Term and Capitalization of Taxes Principal Forbearance Total Modifications Types of modification: Residential real estate $ 53 $ 118 $ - $ 171 $ 709 $ 118 $ - $ 827 Commercial real estate - - 1,654 1,654 - - 1,654 1,654 Construction, land acquisition and development - - - - 96 - - 96 Commercial and industrial - - - - - - - - Consumer - - - - - - - - State and political subdivisions - - - - - - - - Total modifications $ 53 $ 118 $ 1,654 $ 1,825 $ 805 $ 118 $ 1,654 $ 2,577 Although the seven loans modified as TDRs during the six months ended June 30, 2015 did not result in an increase to the specific reserve in the ALLL at June 30, 2015, charge-offs resulting from the modified TDRs totaled $912 thousand for the six months ended June 30, 2015. There was one residential real estate loan modified as a TDR within the previous 12 months which defaulted (defined as past due 90 days) during the three months ended June 30, 2016. This loan had a recorded investment of $37 thousand at June 30, 2016. There were three residential real estate loans with an aggregate recorded investment of $145 thousand that were modified as TDRs within the previous 12 months which defaulted during the six months ended June 30, 2016. For impairment determination purposes, these three TDRs were considered collateral-dependent loans at June 30, 2016. These TDRs had no impact on the allowance for loan and lease losses at June 30, 2016, as the fair value of the underlying collateral, less estimated cost to sell, exceeded the respective recorded investment for each of these TDRs. There was one TDR with a recorded investment of $3.5 million that defaulted during the three and six months ended June 30, 2015, however the default did not occur within 12 months of the original modification. There were five consumer mortgage loans secured by residential real estate properties with an aggregate recorded investment of $162 thousand that were in the process of foreclosure at June 30, 2016. There was one residential real estate property with a carrying value of $237 thousand that was foreclosed upon during the six months ended June 30, 2016. There were three residential real estate properties with an aggregate carrying value of $268 thousand included in OREO at June 30, 2016, and two residential real estate properties with an aggregate carrying value of $41 thousand included in OREO at December 31, 2015. |
Note 5 - Income Taxes
Note 5 - Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 5. Income Taxes The following table presents a reconciliation between the effective income tax expense (benefit) and the income tax expense that would have been provided at the federal statutory tax rate of 34.0% for the three and six months ended June 30, 2016 and 2015. For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Amount % Amount % Amount % Amount % Provision at statutory tax rates $ 777 34.00 % $ 286 34.00 % $ 1,243 34.00 % $ 1,446 34.00 % Add (deduct): Tax effects of non-taxable income (125 ) (5.47% ) (119 ) (14.13% ) (253 ) (6.92% ) (246 ) (5.78% ) Non-deductible interest expense 3 0.13 % 3 0.36 % 5 0.14 % 5 0.12 % Bank-owned life insurance (49 ) (2.13% ) (46 ) (5.46% ) (98 ) (2.69% ) (92 ) (2.16% ) Change in valuation allowance - 0.00 % - 0.00 % (8 ) (0.22% ) - 0.00 % Other items, net 55 2.38 % (102 ) (12.16% ) (2 ) (0.04% ) (1,154 ) (27.13% ) Income tax provision (benefit) $ 661 28.92 % $ 22 2.62 % $ 887 24.27 % $ (40 ) (0.94% ) As of June 30, 2016, FNCB had $55.6 million of net operating loss carryovers resulting in deferred tax assets of $18.9 million. Beginning in 2030, these net operating loss carryovers will expire if not utilized. As of December 31, 2015, FNCB also had $1.0 million of charitable contribution carryovers and $2.5 million in alternative minimum tax (“AMT”) credit carryovers resulting in gross deferred tax assets of $355 thousand and $2.5 million, respectively. Charitable contribution carryovers will begin to expire after December 31, 2016 if not utilized, while AMT credit carryovers have an indefinite life. Management evaluates the carrying amount of its deferred tax assets on a quarterly basis, or more frequently, if necessary, in accordance with guidance set forth in ASC Topic 740 “Income Taxes,” and applies the criteria in the guidance to determine whether it is more likely than not that some portion, or all, of the deferred tax asset will not be realized within its life cycle, based on the weight of available evidence. In evaluating available evidence, management considers, among other factors, historical financial performance, expectation of future earnings, the ability to carry back losses to recoup taxes previously paid, length of statutory carry forward periods, experience with operating loss and tax credit carry forwards not expiring unused, tax planning strategies and timing of reversals of temporary differences. In assessing the need for a valuation allowance, management carefully weighs both positive and negative evidence currently available. The weight given to the potential effect of positive and negative evidence must be commensurate with the extent to which it can objectively verified. If management determines based on available evidence, both positive and negative, that it is more likely than not that some portion or all of the deferred tax asset will not be realized in future periods, a valuation allowance is calculated and recorded. These determinations are inherently subjective and depend upon management’s estimates and judgments used in their evaluation of both positive and negative evidence. Management performed an evaluation of FNCB’s deferred tax assets at June 30, 2016 taking into consideration all available positive and negative evidence at that time. Based on this evaluation, management believes that FNCB’s future taxable income will be sufficient to utilize deferred tax assets. Accordingly, a valuation allowance for deferred tax assets, except for the amount established for charitable contribution carryovers, was not required at June 30, 2016. Management does not believe currently that enough positive evidence exists to remove the valuation allowance associated with charitable contribution carryovers. Unlike the expiration period for net operating loss carryforwards (generally 20 years) and AMT credit carryovers (indefinite), the expiration of an excess charitable contribution carryover occurs after the 5th succeeding tax year for which a charitable contribution is made. Because FNCB is in a net deferred tax asset position, without regard to net operating loss carryovers, the reversal of existing temporary timing differences over the next 5 years makes it more likely than not that a portion of the charitable contribution carryovers will not be recognized. Accordingly, management believes a valuation allowance continues to be appropriate strictly in the case of the excess charitable contribution carryover deferred tax asset. |
Note 6 - Related Party Transact
Note 6 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 6 . Related Party Transactions In conducting its business, FNCB has engaged in and intends to continue to engage in banking and financial transactions with directors and executive officers of FNCB and their related parties. FNCB has granted loans, letters of credit and lines of credit to directors, executive officers and their related parties. The following table summarizes the changes in the total amounts of such outstanding loans, advances under lines of credit , net of any participations sold, as well as repayments during the three and six months ended June 30, 2016 and 2015: For the Three Months Ended For the Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Balance, beginning of period, $ 43,966 $ 42,264 $ 52,652 $ 36,783 Additions, new loans and advances 1,217 7,513 7,212 31,401 Repayments (1,498 ) (9,291 ) (16,179 ) (27,698 ) Other (1) (21 ) - (21 ) - Balance, end of period, $ 43,664 $ 40,486 $ 43,664 $ 40,486 (1) Represents loans to related parties that ceased being an insider during the period. At June 30, 2016, there were no loans made to directors, executive officers and their related parties that were not performing in accordance with the terms of the loan agreements . Previously included in related party loans was a commercial line of credit with a company owned by a director that was paid off during the six months ended June 30, 2016. The aggregate balance outstanding for this loan was $11.0 million at December 31, 2015. FNCB had sold a participation interest in this line to the same director in the amount of $5.2 million, of which $4.4 million was outstanding at December 31, 2015. FNCB had received a 25 basis point annual servicing fee from this director on the participation balance. Deposits from directors, executive officers and their related parties held by FNCB at June 30, 2016 and December 31, 2015 amounted to $91.8 million and $106.1 million, respectively. Interest paid on the deposits amounted to $94 thousand for both the six months ended on June 30, 2016 and 2015 . In the course of its operations, FNCB acquires goods and services from and transacts business with various companies of related parties, which include, but are not limited to, employee health insurance, fidelity bond and errors and omissions insurance, legal services, and repair of repossessed automobiles for resale. FNCB recorded payments to related parties for goods and services of $ 0.4 million and $0.9 million for the three and six months ended June 30, 2016, respectively, and $0.4 million and $0.8 million for the respective periods of 2015 . Subordinated notes (the “Notes”) held by directors and/or their related parties totaled $8.6 million at both June 30, 2016 and December 31, 2015 . For the six months ended June 30, 2016, FNCB paid the quarterly interest payments due on the Notes for the period of December 1, 2015 through May 31, 2016, totaling $320 thousand, of which $197 thousand was paid to directors and/or their related interests. On March 1, 2016, FNCB also paid all previously deferred and accrued interest on the Notes for the period September 1, 2010 through May 31, 2015, which totaled $10.8 million, of which $3.9 million was paid to directors and/or their related interests. There were no interest payments on the Notes made to directors and/or their related interests during the six months ended June 30, 2015. |
Note 7 - Contingencies
Note 7 - Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 7 . Contingencies On May 24, 2012, a putative shareholder filed a complaint in the Court of Common Pleas for Lackawanna County (“Shareholder Derivative Suit”) against certain present and former directors and officers of FNCB (the “Individual Defendants”) alleging, inter alia, breach of fiduciary duty, abuse of control, corporate waste, and unjust enrichment. FNCB was named as a nominal defendant. The parties to the Shareholder Derivative Suit commenced settlement discussions and on December 18, 2013, the Court entered an Order Granting Preliminary Approval of Proposed Settlement subject to notice to shareholders. On February 4, 2014, the Court issued a Final Order and Judgment for the matter granting approval of a Stipulation of Settlement (the “Settlement”) and dismissing all claims against FNCB and the Individual Defendants. As part of the Settlement, there was no admission of liability by the Individual Defendants. Pursuant to the Settlement, the Individual Defendants, without admitting any fault, wrongdoing or liability, agreed to settle the derivative litigation for $5.0 million. The $5.0 million Settlement payment was made to FNCB on March 28, 2014. The Individual Defendants reserved their rights to indemnification under FNCB’s Articles of Incorporation and Bylaws, resolutions adopted by the Board, the Pennsylvania Business Corporation Law and any and all rights they have against the Company’s and the Bank’s insurance carriers. In addition, in conjunction with the Settlement, FNCB accrued $2.5 million related to fees and costs of the plaintiff’s attorneys, which was included in non-interest expense in the Consolidated Statements of Income for the year ended December 31, 2013. On April 1, 2014, FNCB paid the $2.5 million related to fees and costs of the plaintiff’s attorneys and partial indemnification of the Individual Defendants in the amount of $2.5 million, and as such, as of June 30, 2016, $2.5 million plus accrued interest remains accrued in other liabilities related to the potential indemnification of the Individual Defendants. On September 5, 2012, Fidelity and Deposit Company of Maryland (“F&D”) filed an action against the Company and the Bank, as well as several current and former officers and directors of FNCB, in the United States District Court for the Middle District of Pennsylvania. F&D has asserted a claim for the rescission of a directors’ and officers’ insurance policy and a bond that it had issued to FNCB. On November 9, 2012, the Company and the Bank answered the claim and asserted counterclaims for the losses and expenses already incurred by the Company and the Bank. FNCB and the other defendants are defending the claims and have opposed F&D’s requested relief by way of counterclaims, breaches of contract and bad faith claims against F&D for its failure to fulfill its obligations to the Company and the Bank under the insurance policy. At this time, the matter is in the discovery stage and FNCB cannot reasonably determine the outcome or potential range of loss, if any, in connection with this matter. On August 13, 2013, Steven Antonik, individually, as Administrator of the Estate of Linda Kluska, William R. Howells, and Louise A. Howells, on behalf of themselves and others similarly situated, filed a consumer protection class action against the Company and Bank in the Lackawanna County Court of Common Pleas, seeking equitable, injunction and monetary relief to address an alleged pattern and practice of wrong doing by the Bank relating to the repossession and sale of the Plaintiffs’ and class members’ financed motor vehicles. On December 17, 2015, the Honorable Margaret Moyle entered an Order outlining the primary terms of a tentative agreement to settle this matter, pending a finalized, more-detailed settlement agreement, class notice and a class fairness hearing, said Order covering both this matter and the matter involving Plaintiff Charles Saxe, III individually and on behalf of all others similarly situated. The primary terms of the tentative agreement to settle are 1) Defendants to pay the Plaintiffs’ class members, which the Defendants have stated are approximately 430 members, the total sum of $750,000; 2) Plaintiffs will release all claims against Defendants; 3) Defendants will remove to vacate any judgements against any class members arising from the vehicle loans that are the subject of these actions; 4) Defendants will remove the trade line on each class member’s credit report associated with the subject vehicle loans that are at issue in these actions for Experian, Equifax and TransUnion, providing Plaintiffs’ counsel with verification of such; 5) Defendants will verify that the aggregate amount received from class members by Defendants and its agents during the alleged unjust enrichment class period does not exceed $45,000; and 6) Defendants will waive the disputed deficiency balances relating to the subject loans of each class member and agree not to issue IRS Forms 1099-C in connection with these deficiency waivers or to sell, assign , or otherwise collect on the alleged deficiencies. The parties are currently negotiating a Class Action Agreement and Release to be submitted to the Court for preliminary approval. On September 17, 2013, Charles Saxe, III individually and on behalf of all others similarly situated filed a consumer class action against the Bank in the Lackawanna County Court of Common Pleas alleging violations of the Pennsylvania Uniform Commercial Code in connection with the repossession and resale of financed vehicles. On December 17, 2015 the Honorable Margaret Moyle entered an Order outlining the primary terms of a tentative agreement to settle this matter, pending a finalized, more-detailed settlement agreement, class notice and a class fairness hearing, said Order covering both this matter and the matter involving Plaintiffs Steven Antonik, individually, as Administrator of the Estate of Linda Kluska, William R. Howells, and Louise A. Howells, on behalf of themselves and all others similarly situated. The primary terms of the tentative agreement to settle are 1) Defendants to pay the Plaintiffs’ class members, which the Defendants have stated are approximately 430 members, the total sum of $750,000; 2) Plaintiffs will release all claims against Defendants; 3) Defendants will remove to vacate any judgements against any class members arising from the vehicle loans that are the subject of these actions; 4) Defendants will remove the trade line on each class member’s credit report associated with the subject vehicle loans that are at issue in these actions for Experian, Equifax and TransUnion, providing Plaintiffs’ counsel with verification of such; 5) Defendants will verify that the aggregate amount received from class members by Defendants and its agents during the alleged unjust enrichment class period does not exceed $45,000; and 6) Defendants will waive the disputed deficiency balances relating to the subject loans of each class member and agree not to issue IRS Forms 1099-C in connection with these deficiency waivers or to sell, assign , or otherwise collect on the alleged deficiencies. The parties are currently negotiating a Class Action Agreement and Release to be submitted to the Court for preliminary approval. FNCB has been subject to tax audits and is also a party to routine litigation involving various aspects of its business, such as employment practice claims, claims to enforce liens, condemnation proceedings on properties in which FNCB holds security interests, claims involving the making and servicing of real property loans and other issues incident to its business, none of which has or is expected to have a material adverse impact on the consolidated financial condition, results of operations or liquidity of FNCB. There have been no changes in the status of the other litigation disclosed in FNCB’s Annual Report on Form 10-K for the year ended December 31, 2015. |
Note 8 - Stock Compensation Pla
Note 8 - Stock Compensation Plans | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 8 . Stock Compensation Plans On August 30, 2000, FNCB’s Board adopted the 2000 Employee Stock Incentive Plan (the “Stock Incentive Plan”) in which options may be granted to key officers and other employees of FNCB. The aggregate number of shares which may be issued upon exercise of the options under the plan cannot exceed 1,100,000 shares. Options and rights granted under the Stock Incentive Plan became exercisable six months after the date the options are awarded and expire ten years after the award date. Upon exercise, the shares are issued from FNCB’s authorized but unissued stock. The Stock Incentive Plan expired on August 30, 2010. Therefore, no further grants will be made under the plan. No compensation expense related to options under either the Stock Incentive Plan was required to be recorded in the six months ended June 30, 2016 and 2015. There have been no changes to the status of FNCB’s Stock Incentive Plan as of or for the six months ended June 30, 2016. For additional information related to the Stock Incentive Plan refer to Note 16 to the consolidated financial statements included in FNCB’s Annual Report on Form 10-K for the year ended December 31, 2015. On October 23, 2013, the Board of Directors adopted a Long Term Incentive Compensation Plan (“LTIP”) that is designed to reward executives and key employees for their contributions to the long-term success of FNCB, primarily as measured by the increase in FNCB’s stock price. The LTIP authorizes up to 1,200,000 shares of common stock for issuance and provides the Board with the authority to offer several different types of long-term incentives, including stock options, stock appreciation rights, restricted stock, restricted stock units, performance units and performance shares. The Board approved initial awards under the terms of the LTIP, which were granted to executives and key employees on March 1, 2014. The initial grant was comprised solely of 45,750 shares of restricted stock. On March 1, 2015, an additional 84,900 shares of restricted stock were awarded under the LTIP. On March 1, 2016, an additional 67,600 shares were awarded under the LTIP. At June 30, 2016, there were 1,021,030 shares of common stock available for award under the LTIP. For the six months ended June 30, 2016 and 2015, stock-based compensation expense, which is included in salaries and employee benefits expense in the Consolidated Statements of Income, totaled $129 thousand and $110 thousand, respectively. Total unrecognized compensation expense related to unvested restricted stock awards was $557 thousand and $590 thousand at June 30, 2016 and 2015, respectively. The following table summarizes the activity related to FNCB’s unvested restricted stock awards during the six months ended June 30, 2016 and 2015: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted- Weighted- Weighted- Weighted- Average Average Average Average Restricted Grant Date Restricted Grant Date Restricted Grant Date Restricted Grant Date Shares Fair Value Shares Fair Value Shares Fair Value Shares Fair Value Unvested at January 1, 164,371 $ 5.73 113,791 $ 5.99 112,958 $ 5.99 45,750 $ 6.70 Awards granted - - - - 67,600 5.53 84,900 5.75 Forfeitures (18,114 ) 5.62 - - (18,114 ) 5.62 (333 ) 6.70 Vestings (36,661 ) 5.72 - - (52,848 ) 6.02 (16,526 ) 6.70 Unvested at June 30, 109,596 $ 5.75 113,791 $ 5.99 109,596 $ 5.75 113,791 $ 5.99 |
Note 9 - Regulatory Matters
Note 9 - Regulatory Matters | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 9 . Regulatory Matters FNCB’s ability to pay dividends to its shareholders is largely dependent on the Bank’s ability to pay dividends to FNCB. Bank regulations limit the amount of dividends that may be paid without prior approval of the Bank’s regulatory agency. Furthermore, while under a previously disclosed regulatory order and agreement, the Bank and FNCB were previously restricted from paying any dividends without the prior approval of their respective regulators and accordingly did not pay dividends from 2010 through 2015. On April 27, 2016, FNCB declared a cash dividend for the second quarter of 2016 of $0.02 per share, which was paid on June 15, 2016 to shareholders of record as of June 1, 2016. Year-to-date dividends declared and paid were $0.04 per share for the six months ended June 30, 2016. Additionally, on July 29, 2016, FNCB declared a cash dividend for the third quarter of $0.02 per share, payable on September 15, 2016 to shareholders of record as of September 1, 2016. On April 27, 2016, the Board of Directors also approved the reinstatement of the Dividend Reinvestment and Stock Purchase Plan which became effective on June 1, 2016. On February 26, 2016, the Bank filed an application with the Pennsylvania Department of Banking and Securities to convert from an OCC-chartered banking institution to a Pennsylvania state-chartered institution and notified the OCC and the FDIC of its intent to convert to a state charter. Effective June 30, 2016, following receipt of required regulatory approval from the Pennsylvania Department of Banking and Securities, the conversion was completed, and the primary banking regulators of the Bank became the Pennsylvania Department of Banking and Securities and the FDIC. As a result of the charter conversion, the Bank’s legal name became “FNCB Bank”. FNCB at the holding company level will continue to be regulated by the Federal Reserve. FNCB is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on FNCB’s financial statements. Specifically, FNCB is subject to the Basel III capital framework for U.S. banking organizations (the “Regulatory Capital Rules”) which implemented regulatory capital reforms and changes required by the Dodd-Frank Act. The Regulatory Capital Rules became effective for FNCB and the Bank on January 1, 2015 and are subject to transitional provisions extending to January 1, 2019. The Regulatory Capital Rules include new risk-based capital and leverage ratios and refine the definition of what constitutes “capital” for purposes of calculating those ratios. The new minimum capital level requirements applicable to FNCB and the Bank under the Regulatory Capital Rules are: ● a total risk-based capital ratio of 8.00%; ● a Tier I risk-based capital ratio of 6.00%; ● a common equity Tier I risk-based capital ratio of 4.50%; and ● a Tier I capital to average assets (“Tier I leverage ratio”) of 4.00% for all institutions. Under the Regulatory Capital Rules, in order to avoid limitations on capital distributions (including dividend payments and certain discretionary bonus payments to executive officers), a banking organization must hold a capital conservation buffer comprised of common equity Tier I capital above its minimum risk-based capital requirements in an amount greater than 2.5% of total risk-weighted assets. The capital conservation buffer, which is composed of common equity Tier I capital, began on January 1, 2016 at the 0.625% level and will be phased in over a three year period (increasing by that amount on each January 1, until it reaches 2.5% on January 1, 2019). Implementation of the deductions and other adjustments to common equity Tier I capital began on January 1, 2015 and will be phased-in over a three-year period (beginning at 40% on January 1, 2015, 60% on January 1, 2016 and an additional 20% per year thereafter). FNCB and the Bank were in full compliance with the additional capital conservation buffer requirement at June 30, 2016. The following tables present summary information regarding FNCB’s and the Bank’s risk-based capital and related ratios at June 30, 2016 and December 31, 2015: Consolidated Bank Only Minimum Required For Capital Adequacy Purposes Minimum Required For Capital Adequacy Purposes with Conservation Buffer To Be Well Capitalized Under Prompt Corrective Action (in thousands) Amount Ratio Amount Ratio Ratio Ratio Ratio June 30, 2016 Total capital (to risk-weighted assets) $ 95,277 12.00 % $ 102,930 12.97 % 8.00 % 8.625 % 10.00 % Tier I capital (to risk-weighted assets) 78,068 9.83 % 94,120 11.86 % 6.00 % 6.625 % 8.00 % Tier I common equity (to risk-weighted assets) 76,324 9.61 % 94,120 11.86 % 4.50 % 5.125 % 6.50 % Tier I capital (to average assets) 78,068 7.31 % 94,120 8.82 % 4.00 % 4.00 % 5.00 % Total risk-weighted assets 794,269 793,841 Total average assets 1,067,634 1,067,617 Consolidated Bank Only Minimum Required For Capital Adequacy Purposes Minimum Required For Capital Adequacy Purposes with Conservation Buffer To Be Well Capitalized Under Prompt Corrective Action (in thousands) Amount Ratio Amount Ratio Ratio Ratio Ratio December 31, 2015 Total capital (to risk-weighted assets) $ 93,835 11.79 % $ 110,039 13.83 % 8.00 % N/A 10.00 % Tier I capital (to risk-weighted assets) 74,945 9.42 % 100,949 12.69 % 6.00 % N/A 8.00 % Tier I common equity (to risk-weighted assets) 74,945 9.42 % 100,949 12.69 % 4.50 % N/A 6.50 % Tier I capital (to average assets) 74,945 7.27 % 100,949 9.79 % 4.00 % N/A 5.00 % Total risk-weighted assets 795,887 795,490 Total average assets 1,031,426 1,030,828 |
Note 10 - Fair Value Measuremen
Note 10 - Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 10 . Fair Value Measurements In determining fair value, FNCB uses various valuation approaches, including market, income and cost approaches. Accounting standards establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability, which are developed based on market data obtained from sources independent of FNCB. Unobservable inputs reflect FNCB’s knowledge about the assumptions the market participants would use in pricing an asset or liability, which are developed based on the best information available in the circumstances. The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). A financial asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: ● Level 1 valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets. ● Level 2 valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data; and ● Level 3 valuation is derived from other valuation methodologies including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. A description of the valuation methodologies used for assets recorded at fair value, and for estimating fair value of financial instruments not recorded at fair value, is set forth below. Cash, Short-term Investments, Accrued Interest Receivable and Accrued Interest Payable For these short-term instruments, the carrying amount is a reasonable estimate of fair value. Securities The estimated fair values of available-for-sale equity securities are determined by obtaining quoted prices on nationally recognized exchanges (Level 1 inputs). The estimated fair values for FNCB’s investments in obligations of U.S. government agencies, obligations of state and political subdivisions, government-sponsored agency CMOs and residential mortgage-backed securities, corporate debt securities, and negotiable certificates of deposit are obtained by FNCB from a nationally-recognized pricing service. This pricing service develops estimated fair values by analyzing like securities and applying available market information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing (Level 2 inputs), to prepare valuations. Matrix pricing is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things and are based on market data obtained from sources independent from FNCB. The Level 2 investments in FNCB’s portfolio are priced using those inputs that, based on the analysis prepared by the pricing service, reflect the assumptions that market participants would use to price the assets. FNCB has determined that the Level 2 designation is appropriate for these securities because, as with most fixed-income securities, those in FNCB’s portfolio are not exchange-traded, and such non-exchange-traded fixed income securities are typically priced by correlation to observed market data. FNCB has reviewed the pricing service’s methodology to confirm its understanding that such methodology results in a valuation based on quoted market prices for similar instruments traded in active markets, quoted markets for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which the significant assumptions can be corroborated by market data as appropriate to a Level 2 designation. FNCB did not own any securities for which fair value was determined using Level 3 inputs at June 30, 2016 and December 31, 2015. Loans Except for collateral-dependent impaired loans, fair values of loans are estimated by discounting the projected future cash flows using market discount rates that reflect the credit, liquidity, and interest rate risk inherent in the loan. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. The estimated fair value of collateral dependent impaired loans is based on the appraised loan value or other reasonable offers less estimated costs to sell. FNCB does not record loans at fair value on a recurring basis. However from time to time, a loan is considered impaired and an allowance for credit losses is established. The specific reserves for collateral dependent impaired loans are based on the fair value of the collateral less estimated costs to sell. The fair value of the collateral is generally based on appraisals. In some cases, adjustments are made to the appraised values due to various factors including age of the appraisal, age of comparables included in the appraisal, and known changes in the market and in the collateral. When significant adjustments are based on unobservable inputs, the resulting fair value measurement is categorized as a Level 3 measurement. Loans Held For Sale Fair values of mortgage loans held for sale are based on commitments on hand from investors or prevailing market prices. Mortgage Servicing Rights The fair value of mortgage servicing rights is estimated using a discounted cash flow model that applies current estimated prepayments derived from the mortgage-backed securities market and utilizes a current market discount rate for observable credit spreads. FNCB does not record mortgage servicing rights at fair value on a recurring basis. Restricted Stock Ownership in equity securities of FHLB of Pittsburgh and the FRB is restricted and there is no established market for their resale. The carrying amount is a reasonable estimate of fair value. Deposits The fair value of demand deposits, savings deposits, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated based on discounted cash flows using FHLB advance rates currently offered for similar remaining maturities. Borrowed F unds FNCB uses discounted cash flows using rates currently available for debt with similar terms and remaining maturities to estimate fair value. Commitments to Extend Credit and Standby Letters of C redit The fair value of commitments to extend credit and standby letters of credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. 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 off-balance sheet commitments is insignificant and therefore not included in the table for non-recurring assets and liabilities. Assets M easured at Fair Value on a R ecurring B asis The following tables present the financial assets that are measured at fair value on a recurring basis at June 30, 2016 and December 31, 2015, and the fair value hierarchy of the respective valuation techniques utilized by FNCB to determine the fair value: Fair Value Measurements at June 30, 2016 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Significant Other Unobservable (in thousands) Fair Value (Level 1) (Level 2) (Level 3) Available-for-sale securities: Obligations of U.S. government agencies $ 12,724 $ - $ 12,724 $ - Obligations of state and political subdivisions 102,206 - 102,206 - U.S. government/ government-sponsored agencies: Collateralized mortgage obligations - residential 21,013 - 21,013 - Collateralized mortgage obligations - commercial 102,861 - 102,861 - Residential mortgage-backed securities 18,757 - 18,757 - Corporate debt securities 420 - 420 - Negotiable certificates of deposit 3,248 - 3,248 - Equity securities 961 961 - - Total available-for-sale securities $ 262,190 $ 961 $ 261,229 $ - Fair Value Measurements at December 31, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) Available-for-sale securities: Obligations of U.S. government agencies $ 44,043 $ - $ 44,043 $ - Obligations of state and political subdivisions 75,407 - 75,407 - U.S. government/ government-sponsored agencies: Collateralized mortgage obligations - residential 22,269 - 22,269 - Collateralized mortgage obligations - commercial 89,423 - 89,423 - Residential mortgage-backed securities 18,098 - 18,098 - Corporate debt securities 423 - 423 - Negotiable certificates of deposit 3,162 - 3,162 - Equity securities 948 948 - - Total available-for-sale securities $ 253,773 $ 948 $ 252,825 $ - There were no transfers between levels within the fair value hierarchy during the six months ended June 30, 2016 and 2015. Assets M easured at Fair Value on a N on- R ecurring B asis The following tables present assets and liabilities measured at fair value on a non-recurring basis at June 30, 2016 and December 31, 2015, and additional quantitative information about the valuation techniques and inputs utilized by FNCB to determine fair value. All such assets were measured using Level 3 inputs. June 30, 2016 Fair Value Measurement Quantitative Information Recorded Valuation Fair Valuation Unobservable Value/ (in thousands) Investment Allowance Value Technique Inputs Range Impaired loans - collateral dependent $ 449 $ 31 $ 418 Appraisal of collateral Selling cost 10.0 % Impaired loans - other 3,059 243 2,816 Discounted cash flows Discount rate 3.0% - 7.5 % Other real estate owned 905 - 905 Appraisal of collateral Selling cost 10.0 % December 31, 2015 Fair Value Measurement Quantitative Information Recorded Valuation Fair Valuation Unobservable Value/ (in thousands) Investment Allowance Value Technique Inputs Range Impaired loans - collateral dependent $ 718 $ 124 $ 594 Appraisal of collateral Selling cost 10.0 % Impaired loans - other 3,757 257 3,500 Discounted cash flows Discount rate 3.0% - 7.5 % Other real estate owned 3,104 - 3,104 Appraisal of collateral Selling cost 10.0 % The fair value of collateral-dependent impaired loans is determined through independent appraisals or other reasonable offers, which generally include various Level 3 inputs which are not identifiable. Management reduces the appraised value by the estimated costs to sell the property and may make adjustments to the appraised values as necessary to consider any declines in real estate values since the time of the appraisal. For impaired loans that are not collateral-dependent, fair value is determined using the discounted cash flow method. When the measure of the impaired loan is less than the recorded investment in the loan, the impairment is recorded through a valuation allowance or is charged off. The amount shown is the balance of impaired loans, net of any charge-offs and the related allowance for loan losses. OREO properties are recorded at fair value less the estimated cost to sell at the date of FNCB’s acquisition of the property. Subsequent to acquisition of the property, the balance may be written down further. It is FNCB’s policy to obtain certified external appraisals of real estate collateral underlying impaired loans and OREO, and estimate fair value using those appraisals. Other valuation sources may be used, including broker price opinions, letters of intent and executed sale agreements. The following table summarizes the estimated fair values of FNCB’s financial instruments at June 30, 2016 and at December 31, 2015. FNCB discloses fair value information about financial instruments, whether or not recognized in the Statement of Financial Condition, for which it is practicable to estimate that value. The following estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, management judgment is required to interpret data and develop fair value estimates. Accordingly, the estimates below are not necessarily indicative of the amounts FNCB could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Fair Value June 30, 2016 December 31, 2015 (in thousands) Measurement Carrying Value Fair Value Carrying Value Fair Value Financial assets Cash and short term investments Level 1 $ 17,672 $ 17,672 $ 21,083 $ 21,083 Securities available for sale See previous table 262,190 262,190 253,773 253,773 FHLB and FRB Stock Level 2 6,570 6,570 7,695 7,695 Loans held for sale Level 2 563 563 683 683 Loans, net Level 3 725,161 727,559 724,926 716,412 Accrued interest receivable Level 2 2,511 2,511 2,475 2,475 Mortgage servicing rights Level 3 213 722 240 880 Financial liabilities Deposits Level 2 835,834 834,564 821,546 798,466 Borrowed funds Level 2 145,081 145,676 160,112 160,266 Accrued interest payable Level 2 311 311 11,165 11,165 |
Note 11 - Earnings per Share
Note 11 - Earnings per Share | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 11 . Earnings per Share The numerator of both the basic and diluted earnings per common share is net income available to common shareholders (which is equal to net income less dividends on preferred stock and related discount accretion). The weighted average number of common shares outstanding used in the denominator for basic earnings per common share is increased to determine the denominator used for diluted earnings per common share by the effect of potentially dilutive common share equivalents utilizing the treasury stock method. For FNCB, common share equivalents are outstanding stock options to purchase the Company’s common shares and unvested restricted stock. The following table presents the calculation of both basic and diluted earnings per common share for the three and six months ended June 30, 2016 and 2015: Three months ended Six months ended June 30, June 30, (in thousands, except share data) 2016 2015 2016 2015 Net income $ 1,625 $ 819 $ 2,768 $ 4,294 Basic weighted-average number of common shares outstanding 16,549,169 16,500,945 16,534,464 16,495,558 Plus: Common share equivalents - - - - Diluted weighted-average number of common shares outstanding 16,549,169 16,500,945 16,534,464 16,495,558 Income per common share: Basic $ 0.10 $ 0.05 $ 0.17 $ 0.26 Diluted $ 0.10 $ 0.05 $ 0.17 $ 0.26 There were no common share equivalents for the three and six months ended June 30, 2016 or 2015, as the weighted-average price of FNCB’s common stock was below the fair value on the grant dates. Stock options of 47,459 and 64,479 for the six months ended June 30, 2016 and 2015, respectively, were excluded from common share equivalents. The exercise prices of stock options exceeded the average market price of FNCB’s common shares during the periods presented. Similarly, the weighted-average stock price for FNCB’s common stock for the six months ended June 30, 2016 exceeded the fair market value of the restricted stock at the date of grant, therefore, inclusion of these common share equivalents would be anti-dilutive to the diluted earnings per common share calculation. |
Note 12 - Other Comprehensive I
Note 12 - Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | Note 12 . Other Comprehensive Income The following tables summarize the reclassifications out of accumulated other comprehensive income (loss) for the three and six months ended June 30, 2016 and 2015, which is comprised entirely of unrealized gains and losses on available-for-sale securities: Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) Amount Reclassifed from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Amount Reclassifed from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Available-for-sale securities: Reclassification adjustment for net gains reclassified into net income $ (857 ) Net gain on sale of securities $ (960 ) Net gain on sale of securities Taxes 291 Income tax expense (benefit) 326 Income tax expense (benefit) Net of tax amount $ (566 ) $ (634 ) Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (in thousands) Amount Reclassifed from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Amount Reclassifed from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Available-for-sale securities: Reclassification adjustment for net gains reclassified into net income $ (74 ) Net gain on sale of securities $ (2,298 ) Net gain on sale of securities Taxes 25 Income tax expense (benefit) 781 Income tax expense (benefit) Net of tax amount $ (49 ) $ (1,517 ) The following table summarizes the changes in accumulated other comprehensive income (loss), net of tax for the three and six months ended June 30, 2016 and 2015: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Beginning balance $ 4,782 $ 1,966 $ (238 ) $ 1,138 Other comprehensive income (loss) before reclassifications 2,520 (1,638 ) 7,608 658 Amounts reclassified from accumulated other comprehensive income (loss) (566 ) (49 ) (634 ) (1,517 ) Net other comprehensive income (loss) during the period 1,954 (1,687 ) 6,974 (859 ) Ending balance $ 6,736 $ 279 $ 6,736 $ 279 |
Note 3 - Securities (Tables)
Note 3 - Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | June 30, 2016 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair (in thousands) Cost Gains Losses Value Available-for-sale: Obligations of U.S. government agencies $ 12,159 $ 565 $ - $ 12,724 Obligations of state and political subdivisions 97,248 4,958 - 102,206 U.S. government/government-sponsored agencies: Collateralized mortgage obligations - residential 20,339 675 1 21,013 Collateralized mortgage obligations - commercial 99,619 3,242 - 102,861 Residential mortgage-backed securities 17,936 821 - 18,757 Corporate debt securities 500 - 80 420 Negotiable certificates of deposit 3,173 75 - 3,248 Equity securities 1,010 - 49 961 Total available-for-sale securities $ 251,984 $ 10,336 $ 130 $ 262,190 December 31, 2015 Gross Gross Unrealized Unrealized Amortized Holding Holding Fair (in thousands) Cost Gains Losses Value Available-for-sale: Obligations of U.S. government agencies $ 43,787 $ 256 $ - $ 44,043 Obligations of state and political subdivisions 75,401 428 422 75,407 U.S. government/government-sponsored agencies: Collateralized mortgage obligations - residential 22,162 116 9 22,269 Collateralized mortgage obligations - commercial 89,900 124 601 89,423 Residential mortgage-backed securities 18,201 58 161 18,098 Corporate debt securities 500 - 77 423 Negotiable certificates of deposit 3,173 - 11 3,162 Equity securities 1,010 - 62 948 Total available-for-sale securities $ 254,134 $ 982 $ 1,343 $ 253,773 |
Investments Classified by Contractual Maturity Date [Table Text Block] | June 30, 2016 Amortized Fair (in thousands) Cost Value Amounts maturing in: One year or less $ - $ - After one year through five years 21,761 22,627 After five years through ten years 87,033 91,578 After ten years 4,286 4,393 Collateralized mortgage obligations 119,958 123,874 Residential mortgage-backed securities 17,936 18,757 Total $ 250,974 $ 261,229 |
Schedule of Unrealized Loss on Investments [Table Text Block] | June 30, 2016 Less than 12 Months 12 Months or Greater Total Number Gross Number Gross Number Gross of Fair Unrealized of Fair Unrealized of Fair Unrealized (dollars in thousands) Securities Value Losses Securities Value Losses Securities Value Losses Obligations of US government agencies - $ - $ - - $ - $ - - $ - $ - Obligations of state and policitical subdivisions - - - - - - - - - U.S. government/government-sponsored agencies: Collateralized mortgage obligations - residential - - - 2 335 1 2 335 1 Collateralized mortgage obligations - commercial - - - - - - - - - Residential mortgage-backed securities - - - - - - - - - Corporate debt securities - - - 1 420 80 1 420 80 Negotiable certificates of deposit - - - - - - - - - Equity securities - - - 1 951 49 1 951 49 Total - $ - $ - 4 $ 1,706 $ 130 4 $ 1,706 $ 130 December 31, 2015 Less than 12 Months 12 Months or Greater Total Number Gross Number Gross Number Gross of Fair Unrealized of Fair Unrealized of Fair Unrealized (dollars in thousands) Securities Value Losses Securities Value Losses Securities Value Losses Obligations of U.S. government agencies - $ - $ - - $ - $ - - $ - $ - Obligations of state and policitical subdivisions 31 33,022 419 1 264 3 32 33,286 422 U.S. government/government-sponsored agencies: Collateralized mortgage obligations - residential 4 5,738 9 - - - 4 5,738 9 Collateralized mortgage obligations - commercial 16 67,969 601 - - - 16 67,969 601 Residential mortgage-backed securities 7 16,779 161 - - - 7 16,779 161 Corporate debt securities - - - 1 423 77 1 423 77 Negotiable certificates of deposit 12 2,913 11 - - - 12 2,913 11 Equity securities - - - 1 938 62 1 938 62 Total 70 $ 126,421 $ 1,201 3 $ 1,625 $ 142 73 $ 128,046 $ 1,343 |
Note 4 - Loans (Tables)
Note 4 - Loans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30, December 31, (in thousands) 2016 2015 Residential real estate $ 136,483 $ 130,696 Commercial real estate 244,282 245,198 Construction, land acquisition and development 23,261 30,843 Commercial and industrial 153,990 149,826 Consumer 125,321 128,533 State and political subdivisions 48,037 46,056 Total loans, gross 731,374 731,152 Unearned income (102 ) (98 ) Net deferred loan costs 2,448 2,662 Allowance for loan and lease losses (8,559 ) (8,790 ) Loans, net $ 725,161 $ 724,926 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Real Estate Construction, Land Acquisition Commercial State and Residential Commercial and and Political (in thousands) Real Estate Real Estate Development Industrial Consumer Subdivisions Unallocated Total Three months ended June 30, 2016: Allowance for loan losses: Beginning balance, April 1, 2016 $ 1,210 $ 3,291 $ 653 $ 1,322 $ 1,379 $ 780 $ - $ 8,635 Charge-offs - - - (496 ) (213 ) - - (709 ) Recoveries 1 2 9 118 107 - - 237 Provisions (credits) (112 ) (198 ) 55 621 77 (47 ) - 396 Ending balance, June 30, 2016 $ 1,099 $ 3,095 $ 717 $ 1,565 $ 1,350 $ 733 $ - $ 8,559 Three months ended June 30, 2015: Allowance for loan losses: Beginning balance, April 1, 2015 $ 1,531 $ 4,331 $ 764 $ 1,998 $ 1,698 $ 583 $ 39 $ 10,944 Charge-offs (1 ) (912 ) (6 ) (72 ) (201 ) - - (1,192 ) Recoveries 5 16 - 102 108 - - 231 Provisions (credits) (51 ) 606 20 (150 ) 38 (79 ) (39 ) 345 Ending balance, June 30, 2015 $ 1,484 $ 4,041 $ 778 $ 1,878 $ 1,643 $ 504 $ - $ 10,328 Six months ended June 30, 2016: Allowance for loan losses: Beginning balance, January 1, 2016 $ 1,333 $ 3,346 $ 853 $ 1,205 $ 1,494 $ 485 $ 74 $ 8,790 Charge-offs (24 ) (251 ) - (1,064 ) (518 ) - - (1,857 ) Recoveries 2 3 9 212 308 - - 534 Provisions (credits) (212 ) (3 ) (145 ) 1,212 66 248 (74 ) 1,092 Ending balance, June 30, 2016 $ 1,099 $ 3,095 $ 717 $ 1,565 $ 1,350 $ 733 $ - $ 8,559 Six months ended June 30, 2015: Allowance for loan losses: Beginning balance, January 1, 2015 $ 1,772 $ 4,663 $ 665 $ 2,104 $ 1,673 $ 598 $ 45 $ 11,520 Charge-offs (69 ) (912 ) (6 ) (142 ) (340 ) - - (1,469 ) Recoveries 11 18 - 167 230 - - 426 Provisions (credits) (230 ) 272 119 (251 ) 80 (94 ) (45 ) (149 ) Ending balance, June 30, 2015 $ 1,484 $ 4,041 $ 778 $ 1,878 $ 1,643 $ 504 $ - $ 10,328 Real Estate Construction, Land Acquisition Commercial State and Residential Commercial and and Political (in thousands) Real Estate Real Estate Development Industrial Consumer Subdivisions Unallocated Total June 30, 2016 Allowance for loan losses: Individually evaluated for impairment $ 4 $ 269 $ - $ - $ 1 $ - $ - $ 274 Collectively evaluated for impairment 1,095 2,826 717 1,565 1,349 733 - 8,285 Total $ 1,099 $ 3,095 $ 717 $ 1,565 $ 1,350 $ 733 $ - $ 8,559 Loans receivable: Individually evaluated for impairment $ 2,108 $ 3,047 $ 398 $ 283 $ 300 $ - $ - $ 6,136 Collectively evaluated for impairment 134,375 241,235 22,863 153,707 125,021 48,037 - 725,238 Total $ 136,483 $ 244,282 $ 23,261 $ 153,990 $ 125,321 $ 48,037 $ - $ 731,374 December 31, 2015 Allowance for loan losses: Individually evaluated for impairment $ 92 $ 287 $ 1 $ - $ 1 $ - $ - $ 381 Collectively evaluated for impairment 1,241 3,059 852 1,205 1,493 485 74 8,409 Total $ 1,333 $ 3,346 $ 853 $ 1,205 $ 1,494 $ 485 $ 74 $ 8,790 Loans receivable: Individually evaluated for impairment $ 2,930 $ 3,831 $ 646 $ 203 $ 351 $ - $ - $ 7,961 Collectively evaluated for impairment 127,766 241,367 30,197 149,623 128,182 46,056 - 723,191 Total $ 130,696 $ 245,198 $ 30,843 $ 149,826 $ 128,533 $ 46,056 $ - $ 731,152 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Credit Quality Indicators June 30, 2016 Commercial Loans Other Loans Special Subtotal Accruing Non-accrual Subtotal Total (in thousands) Pass Mention Substandard Doubtful Loss Commercial Loans Loans Other Loans Residential real estate $ 24,438 $ 383 $ 533 $ - $ - $ 25,354 $ 110,336 $ 793 $ 111,129 $ 136,483 Commercial real estate 230,718 6,267 7,297 - - 244,282 - - - 244,282 Construction, land acquisition and development 14,497 352 4,620 - - 19,469 3,786 6 3,792 23,261 Commercial and industrial 146,271 858 2,180 - - 149,309 4,681 - 4,681 153,990 Consumer 2,873 2 38 - - 2,913 122,224 184 122,408 125,321 State and political subdivisions 41,754 5,891 392 - - 48,037 - - - 48,037 Total $ 460,551 $ 13,753 $ 15,060 $ - $ - $ 489,364 $ 241,027 $ 983 $ 242,010 $ 731,374 Credit Quality Indicators December 31, 2015 Commercial Loans Other Loans Special Subtotal Accruing Non-accrual Subtotal Total (in thousands) Pass Mention Substandard Doubtful Loss Commercial Loans Loans Other Loans Residential real estate $ 21,018 $ 449 $ 984 $ - $ - $ 22,451 $ 107,204 $ 1,041 $ 108,245 $ 130,696 Commercial real estate 225,850 11,356 7,992 - - 245,198 - - - 245,198 Construction, land acquisition and development 23,946 358 5,137 - - 29,441 1,402 - 1,402 30,843 Commercial and industrial 142,242 595 2,209 - - 145,046 4,775 5 4,780 149,826 Consumer 2,747 9 39 - - 2,795 125,392 346 125,738 128,533 State and political subdivisions 45,464 120 472 - - 46,056 - - - 46,056 Total $ 461,267 $ 12,887 $ 16,833 $ - $ - $ 490,987 $ 238,773 $ 1,392 $ 240,165 $ 731,152 |
Past Due Financing Receivables [Table Text Block] | June 30, 2016 Delinquency Status 0-29 Days 30-59 Days 60-89 Days >/= 90 Days (in thousands) Past Due Past Due Past Due Past Due Total Performing (accruing) loans: Real estate: Residential real estate $ 135,136 $ 285 $ 109 $ - $ 135,530 Commercial real estate 242,608 118 592 - 243,318 Construction, land acquisition and development 22,856 18 90 - 22,964 Total real estate 400,600 421 791 - 401,812 Commercial and industrial 153,315 317 17 - 153,649 Consumer 123,997 908 232 - 125,137 State and political subdivisions 48,037 - - - 48,037 Total performing (accruing) loans 725,949 1,646 1,040 - 728,635 Non-accrual loans: Real estate: Residential real estate 403 3 21 526 953 Commercial real estate 176 - 108 680 964 Construction, land aquisition and development 291 - - 6 297 Total real estate 870 3 129 1,212 2,214 Commercial and industrial - 260 25 56 341 Consumer 68 8 11 97 184 State and political subdivisions - - - - - Total non-accrual loans 938 271 165 1,365 2,739 Total loans receivable $ 726,887 $ 1,917 $ 1,205 $ 1,365 $ 731,374 December 31, 2015 Delinquency Status 0-29 Days 30-59 Days 60-89 Days >/= 90 Days (in thousands) Past Due Past Due Past Due Past Due Total Performing (accruing) loans: Real estate: Residential real estate $ 129,206 $ 51 $ 225 $ - $ 129,482 Commercial real estate 243,168 53 286 - 243,507 Construction, land acquisition and development 30,475 26 - - 30,501 Total real estate 402,849 130 511 - 403,490 Commercial and industrial 149,329 236 66 - 149,631 Consumer 126,760 994 433 - 128,187 State and political subdivisions 46,056 - - - 46,056 Total peforming (accruing) loans 724,994 1,360 1,010 - 727,364 Non-accrual loans: Real estate: Residential real estate 923 99 44 148 1,214 Commercial real estate 1,576 - 115 - 1,691 Construction, land acquisition and development 342 - - - 342 Total real estate 2,841 99 159 148 3,247 Commercial and industrial 98 - - 97 195 Consumer 69 21 3 253 346 State and political subdivisions - - - - - Total non-accrual loans 3,008 120 162 498 3,788 Total loans receivable $ 728,002 $ 1,480 $ 1,172 $ 498 $ 731,152 |
Impaired Financing Receivables [Table Text Block] | June 30, 2016 Unpaid Recorded Principal Related (in thousands) Recorded Investment Balance Related Allowance With no allowance recorded: Real estate: Residential real estate $ 815 $ 899 $ - Commercial real estate 1,132 2,154 - Construction, land acquisition and development 398 793 - Total real estate 2,345 3,846 - Commercial and industrial 283 505 - Consumer - - - State and political subdivisions - - - Total impaired loans with no related allowance recorded 2,628 4,351 - With a related allowance recorded: Real estate: Residential real estate 1,293 1,293 4 Commercial real estate 1,915 1,915 269 Construction, land acquisition and development - - - Total real estate 3,208 3,208 273 Commercial and industrial - - - Consumer 300 300 1 State and political subdivisions - - - Total impaired loans with a related allowance recorded 3,508 3,508 274 Total impaired loans: Real estate: Residential real estate 2,108 2,192 4 Commercial real estate 3,047 4,069 269 Construction, land acquisition and development 398 793 - Total real estate 5,553 7,054 273 Commercial and industrial 283 505 - Consumer 300 300 1 State and political subdivisions - - - Total impaired loans $ 6,136 $ 7,859 $ 274 December 31, 2015 Unpaid Recorded Principal Related (in thousands) Investment Balance Allowance With no allowance recorded: Real estate: Residential real estate $ 1,042 $ 1,138 $ - Commercial real estate 1,850 2,868 - Construction, land acquisition and development 470 844 - Total real estate 3,362 4,850 - Commercial and industrial 124 156 - Consumer - - - State and political subdivisions - - - Total impaired loans with no related allowance recorded 3,486 5,006 - With a related allowance recorded: Real estate: Residential real estate 1,888 1,888 92 Commercial real estate 1,981 1,981 287 Construction, land acquisition and development 176 176 1 Total real estate 4,045 4,045 380 Commercial and industrial 79 79 - Consumer 351 351 1 State and political subdivisions - - - Total impaired loans with a related allowance recorded 4,475 4,475 381 Total impaired loans: Real estate: Residential real estate 2,930 3,026 92 Commercial real estate 3,831 4,849 287 Construction, land acquisition and development 646 1,020 1 Total real estate 7,407 8,895 380 Commercial and industrial 203 235 - Consumer 351 351 1 State and political subdivisions - - - Total impaired loans $ 7,961 $ 9,481 $ 381 |
Schedule of Average Balance and Interest Income on Impaired Loans [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Average Balance Interest Income (1) Average Balance Interest Income (1) Average Balance Interest Income (1) Average Balance Interest Income (1) Real estate: Residential real estate $ 2,278 $ 22 $ 2,666 $ 31 $ 2,577 $ 48 $ 2,782 $ 64 Commercial real estate 3,279 23 6,601 28 3,531 46 6,584 58 Construction, land acquisition and development 411 1 343 5 488 4 346 9 Total real estate 5,968 46 9,610 64 6,596 98 9,712 131 Commercial and industrial 343 1 30 - 390 2 30 - Consumer 349 3 357 3 349 6 358 6 State and political subdivisions - - - - - - - - Total impaired loans $ 6,660 $ 50 $ 9,997 $ 67 $ 7,335 $ 106 $ 10,100 $ 137 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Pre-Modification Post-Modification Pre-Modification Post-Modification Outstanding Outstanding Outstanding Outstanding Number of Recorded Recorded Number of Recorded Recorded (dollars in thousands) Contracts Investments Investments Contracts Investments Investments Troubled debt restructurings: Residential real estate 3 $ 154 $ 171 5 $ 810 $ 827 Commercial real estate 1 1,654 742 1 1,654 742 Construction, land acquisition and development - - - 1 96 96 Commercial and industrial - - - - - - Consumer - - - - - - States and political subdivisions - - - - - - Total new troubled debt restructurings 4 $ 1,808 $ 913 7 $ 2,560 $ 1,665 |
Schedule of Types of Modifications of Troubled Debt Restructurings on Financing Receivables [Table Text Block] | Three months ended June 30, 2015 Six months ended June 30, 2015 (in thousands) Extension of Term Extension of Term and Capitalization of Taxes Principal Forbearance Total Modifications Extension of Term Extension of Term and Capitalization of Taxes Principal Forbearance Total Modifications Types of modification: Residential real estate $ 53 $ 118 $ - $ 171 $ 709 $ 118 $ - $ 827 Commercial real estate - - 1,654 1,654 - - 1,654 1,654 Construction, land acquisition and development - - - - 96 - - 96 Commercial and industrial - - - - - - - - Consumer - - - - - - - - State and political subdivisions - - - - - - - - Total modifications $ 53 $ 118 $ 1,654 $ 1,825 $ 805 $ 118 $ 1,654 $ 2,577 |
Note 5 - Income Taxes (Tables)
Note 5 - Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the Three Months Ended June 30, For the Six Months Ended June 30, 2016 2015 2016 2015 (in thousands) Amount % Amount % Amount % Amount % Provision at statutory tax rates $ 777 34.00 % $ 286 34.00 % $ 1,243 34.00 % $ 1,446 34.00 % Add (deduct): Tax effects of non-taxable income (125 ) (5.47% ) (119 ) (14.13% ) (253 ) (6.92% ) (246 ) (5.78% ) Non-deductible interest expense 3 0.13 % 3 0.36 % 5 0.14 % 5 0.12 % Bank-owned life insurance (49 ) (2.13% ) (46 ) (5.46% ) (98 ) (2.69% ) (92 ) (2.16% ) Change in valuation allowance - 0.00 % - 0.00 % (8 ) (0.22% ) - 0.00 % Other items, net 55 2.38 % (102 ) (12.16% ) (2 ) (0.04% ) (1,154 ) (27.13% ) Income tax provision (benefit) $ 661 28.92 % $ 22 2.62 % $ 887 24.27 % $ (40 ) (0.94% ) |
Note 6 - Related Party Transa24
Note 6 - Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | For the Three Months Ended For the Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Balance, beginning of period, $ 43,966 $ 42,264 $ 52,652 $ 36,783 Additions, new loans and advances 1,217 7,513 7,212 31,401 Repayments (1,498 ) (9,291 ) (16,179 ) (27,698 ) Other (1) (21 ) - (21 ) - Balance, end of period, $ 43,664 $ 40,486 $ 43,664 $ 40,486 |
Note 8 - Stock Compensation P25
Note 8 - Stock Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Weighted- Weighted- Weighted- Weighted- Average Average Average Average Restricted Grant Date Restricted Grant Date Restricted Grant Date Restricted Grant Date Shares Fair Value Shares Fair Value Shares Fair Value Shares Fair Value Unvested at January 1, 164,371 $ 5.73 113,791 $ 5.99 112,958 $ 5.99 45,750 $ 6.70 Awards granted - - - - 67,600 5.53 84,900 5.75 Forfeitures (18,114 ) 5.62 - - (18,114 ) 5.62 (333 ) 6.70 Vestings (36,661 ) 5.72 - - (52,848 ) 6.02 (16,526 ) 6.70 Unvested at June 30, 109,596 $ 5.75 113,791 $ 5.99 109,596 $ 5.75 113,791 $ 5.99 |
Note 9 - Regulatory Matters (Ta
Note 9 - Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Consolidated Bank Only Minimum Required For Capital Adequacy Purposes Minimum Required For Capital Adequacy Purposes with Conservation Buffer To Be Well Capitalized Under Prompt Corrective Action (in thousands) Amount Ratio Amount Ratio Ratio Ratio Ratio June 30, 2016 Total capital (to risk-weighted assets) $ 95,277 12.00 % $ 102,930 12.97 % 8.00 % 8.625 % 10.00 % Tier I capital (to risk-weighted assets) 78,068 9.83 % 94,120 11.86 % 6.00 % 6.625 % 8.00 % Tier I common equity (to risk-weighted assets) 76,324 9.61 % 94,120 11.86 % 4.50 % 5.125 % 6.50 % Tier I capital (to average assets) 78,068 7.31 % 94,120 8.82 % 4.00 % 4.00 % 5.00 % Total risk-weighted assets 794,269 793,841 Total average assets 1,067,634 1,067,617 Consolidated Bank Only Minimum Required For Capital Adequacy Purposes Minimum Required For Capital Adequacy Purposes with Conservation Buffer To Be Well Capitalized Under Prompt Corrective Action (in thousands) Amount Ratio Amount Ratio Ratio Ratio Ratio December 31, 2015 Total capital (to risk-weighted assets) $ 93,835 11.79 % $ 110,039 13.83 % 8.00 % N/A 10.00 % Tier I capital (to risk-weighted assets) 74,945 9.42 % 100,949 12.69 % 6.00 % N/A 8.00 % Tier I common equity (to risk-weighted assets) 74,945 9.42 % 100,949 12.69 % 4.50 % N/A 6.50 % Tier I capital (to average assets) 74,945 7.27 % 100,949 9.79 % 4.00 % N/A 5.00 % Total risk-weighted assets 795,887 795,490 Total average assets 1,031,426 1,030,828 |
Note 10 - Fair Value Measurem27
Note 10 - Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements at June 30, 2016 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Significant Other Unobservable (in thousands) Fair Value (Level 1) (Level 2) (Level 3) Available-for-sale securities: Obligations of U.S. government agencies $ 12,724 $ - $ 12,724 $ - Obligations of state and political subdivisions 102,206 - 102,206 - U.S. government/ government-sponsored agencies: Collateralized mortgage obligations - residential 21,013 - 21,013 - Collateralized mortgage obligations - commercial 102,861 - 102,861 - Residential mortgage-backed securities 18,757 - 18,757 - Corporate debt securities 420 - 420 - Negotiable certificates of deposit 3,248 - 3,248 - Equity securities 961 961 - - Total available-for-sale securities $ 262,190 $ 961 $ 261,229 $ - Fair Value Measurements at December 31, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs (in thousands) Fair Value (Level 1) (Level 2) (Level 3) Available-for-sale securities: Obligations of U.S. government agencies $ 44,043 $ - $ 44,043 $ - Obligations of state and political subdivisions 75,407 - 75,407 - U.S. government/ government-sponsored agencies: Collateralized mortgage obligations - residential 22,269 - 22,269 - Collateralized mortgage obligations - commercial 89,423 - 89,423 - Residential mortgage-backed securities 18,098 - 18,098 - Corporate debt securities 423 - 423 - Negotiable certificates of deposit 3,162 - 3,162 - Equity securities 948 948 - - Total available-for-sale securities $ 253,773 $ 948 $ 252,825 $ - |
Fair Value Measurements, Nonrecurring [Table Text Block] | June 30, 2016 Fair Value Measurement Quantitative Information Recorded Valuation Fair Valuation Unobservable Value/ (in thousands) Investment Allowance Value Technique Inputs Range Impaired loans - collateral dependent $ 449 $ 31 $ 418 Appraisal of collateral Selling cost 10.0 % Impaired loans - other 3,059 243 2,816 Discounted cash flows Discount rate 3.0% - 7.5 % Other real estate owned 905 - 905 Appraisal of collateral Selling cost 10.0 % December 31, 2015 Fair Value Measurement Quantitative Information Recorded Valuation Fair Valuation Unobservable Value/ (in thousands) Investment Allowance Value Technique Inputs Range Impaired loans - collateral dependent $ 718 $ 124 $ 594 Appraisal of collateral Selling cost 10.0 % Impaired loans - other 3,757 257 3,500 Discounted cash flows Discount rate 3.0% - 7.5 % Other real estate owned 3,104 - 3,104 Appraisal of collateral Selling cost 10.0 % |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value June 30, 2016 December 31, 2015 (in thousands) Measurement Carrying Value Fair Value Carrying Value Fair Value Financial assets Cash and short term investments Level 1 $ 17,672 $ 17,672 $ 21,083 $ 21,083 Securities available for sale See previous table 262,190 262,190 253,773 253,773 FHLB and FRB Stock Level 2 6,570 6,570 7,695 7,695 Loans held for sale Level 2 563 563 683 683 Loans, net Level 3 725,161 727,559 724,926 716,412 Accrued interest receivable Level 2 2,511 2,511 2,475 2,475 Mortgage servicing rights Level 3 213 722 240 880 Financial liabilities Deposits Level 2 835,834 834,564 821,546 798,466 Borrowed funds Level 2 145,081 145,676 160,112 160,266 Accrued interest payable Level 2 311 311 11,165 11,165 |
Note 11 - Earnings per Share (T
Note 11 - Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Six months ended June 30, June 30, (in thousands, except share data) 2016 2015 2016 2015 Net income $ 1,625 $ 819 $ 2,768 $ 4,294 Basic weighted-average number of common shares outstanding 16,549,169 16,500,945 16,534,464 16,495,558 Plus: Common share equivalents - - - - Diluted weighted-average number of common shares outstanding 16,549,169 16,500,945 16,534,464 16,495,558 Income per common share: Basic $ 0.10 $ 0.05 $ 0.17 $ 0.26 Diluted $ 0.10 $ 0.05 $ 0.17 $ 0.26 |
Note 12 - Other Comprehensive29
Note 12 - Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Tables | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (in thousands) Amount Reclassifed from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Amount Reclassifed from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Available-for-sale securities: Reclassification adjustment for net gains reclassified into net income $ (857 ) Net gain on sale of securities $ (960 ) Net gain on sale of securities Taxes 291 Income tax expense (benefit) 326 Income tax expense (benefit) Net of tax amount $ (566 ) $ (634 ) Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 (in thousands) Amount Reclassifed from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Amount Reclassifed from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income Available-for-sale securities: Reclassification adjustment for net gains reclassified into net income $ (74 ) Net gain on sale of securities $ (2,298 ) Net gain on sale of securities Taxes 25 Income tax expense (benefit) 781 Income tax expense (benefit) Net of tax amount $ (49 ) $ (1,517 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2016 2015 2016 2015 Beginning balance $ 4,782 $ 1,966 $ (238 ) $ 1,138 Other comprehensive income (loss) before reclassifications 2,520 (1,638 ) 7,608 658 Amounts reclassified from accumulated other comprehensive income (loss) (566 ) (49 ) (634 ) (1,517 ) Net other comprehensive income (loss) during the period 1,954 (1,687 ) 6,974 (859 ) Ending balance $ 6,736 $ 279 $ 6,736 $ 279 |
Note 3 - Securities (Details Te
Note 3 - Securities (Details Textual) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Other Assets [Member] | |||||
Federal Reserve Bank Stock | $ 1,300,000 | $ 1,300,000 | $ 1,300,000 | ||
Federal Home Loan Bank of Pittsburgh [Member] | |||||
Impairment on Federal Home Loan Bank Stock | $ 0 | $ 0 | |||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |||||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 2 | 2 | |||
Corporate Debt Securities [Member] | |||||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 1 | 1 | 1 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 1 | 1 | 1 | ||
Equity Securities [Member] | |||||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 1 | 1 | 1 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 1 | 1 | 1 | ||
Available-for-sale Securities, Gross Realized Losses | $ 0 | $ 4,000 | $ 0 | $ 4,000 | |
Other than Temporary Impairment Losses, Investments | 0 | ||||
Impairment on Federal Reserve Bank of Philadelphia Stock | 0 | 0 | |||
Available-for-sale Securities Pledged as Collateral | 260,800,000 | 260,800,000 | $ 252,400,000 | ||
Proceeds from Sale of Available-for-sale Securities | 26,400,000 | 37,600,000 | 32,588,000 | 73,460,000 | |
Available-for-sale Securities, Gross Realized Gains | $ 857,000 | $ 78,000 | $ 960,000 | $ 2,300,000 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 4 | 4 | 3 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 4 | 4 | 73 | ||
Federal Home Loan Bank Stock and Federal Reserve Bank Stock | $ 6,600,000 | $ 6,600,000 | $ 7,700,000 |
Note 3 - Securities - Amortized
Note 3 - Securities - Amortized Cost, Gross Unrealized Gains and Losses, and the Fair Value of the Company's Securities (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
US Government Agencies Debt Securities [Member] | ||
Amortized Cost | $ 12,159,000 | $ 43,787,000 |
Gross Unrealized Holding Gains | 565,000 | 256,000 |
Gross Unrealized Holding Losses | 0 | 0 |
Available-for-sale Securities | 12,724,000 | 44,043,000 |
US States and Political Subdivisions Debt Securities [Member] | ||
Amortized Cost | 97,248,000 | 75,401,000 |
Gross Unrealized Holding Gains | 4,958,000 | 428,000 |
Gross Unrealized Holding Losses | 0 | 422,000 |
Available-for-sale Securities | 102,206,000 | 75,407,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Residential Mortgage [Member] | ||
Amortized Cost | 20,339,000 | 22,162,000 |
Gross Unrealized Holding Gains | 675,000 | 116,000 |
Gross Unrealized Holding Losses | 1,000 | 9,000 |
Available-for-sale Securities | 21,013,000 | 22,269,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Commercial Loan [Member] | ||
Amortized Cost | 99,619,000 | 89,900,000 |
Gross Unrealized Holding Gains | 3,242,000 | 124,000 |
Gross Unrealized Holding Losses | 0 | 601,000 |
Available-for-sale Securities | 102,861,000 | 89,423,000 |
Residential Mortgage Backed Securities [Member] | ||
Amortized Cost | 17,936,000 | 18,201,000 |
Gross Unrealized Holding Gains | 821,000 | 58,000 |
Gross Unrealized Holding Losses | 0 | 161,000 |
Available-for-sale Securities | 18,757,000 | 18,098,000 |
Corporate Debt Securities [Member] | ||
Amortized Cost | 500,000 | 500,000 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | 80,000 | 77,000 |
Available-for-sale Securities | 420,000 | 423,000 |
Negotiable Certificates of Deposit [Member] | ||
Amortized Cost | 3,173,000 | 3,173,000 |
Gross Unrealized Holding Gains | 75,000 | 0 |
Gross Unrealized Holding Losses | 0 | 11,000 |
Available-for-sale Securities | 3,248,000 | 3,162,000 |
Equity Securities [Member] | ||
Amortized Cost | 1,010,000 | 1,010,000 |
Gross Unrealized Holding Gains | 0 | 0 |
Gross Unrealized Holding Losses | 49,000 | 62,000 |
Available-for-sale Securities | 961,000 | 948,000 |
Amortized Cost | 251,984,000 | 254,134,000 |
Gross Unrealized Holding Gains | 10,336,000 | 982,000 |
Gross Unrealized Holding Losses | 130,000 | 1,343,000 |
Available-for-sale Securities | $ 262,190,000 | $ 253,773,000 |
Note 3 - Securities - Available
Note 3 - Securities - Available-for-sale Debt Securities by Contractual Maturity (Details) | Jun. 30, 2016USD ($) |
Collateralized Mortgage Obligations [Member] | |
Securities without a single maturity, amortized cost | $ 119,958,000 |
Securities without a single maturity, fair value | 123,874,000 |
Residential Mortgage Backed Securities [Member] | |
Securities without a single maturity, amortized cost | 17,936,000 |
Securities without a single maturity, fair value | 18,757,000 |
One year or less, amortized cost | 0 |
One year or less, fair value | 0 |
After one year through five years, amortized cost | 21,761,000 |
After one year through five years, fair value | 22,627,000 |
After five years through ten years, amortized cost | 87,033,000 |
After five years through ten years, fair value | 91,578,000 |
After ten years, amortized cost | 4,286,000 |
After ten years, fair value | 4,393,000 |
Total, amortized cost | 250,974,000 |
Total, fair value | $ 261,229,000 |
Note 3 - Securities - Availab33
Note 3 - Securities - Available-for-sale Securities in a Continuous Unrealized Loss Position (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
US Government Agencies Debt Securities [Member] | ||
Less than 12 Months, Number of Securities | 0 | 0 |
Less than 12 Months, Fair Value | $ 0 | $ 0 |
Less than 12 Months, Gross Unrealized Losses | $ 0 | $ 0 |
12 Months or Greater, Number of Securities | 0 | 0 |
12 Months or Greater, Fair Value | $ 0 | $ 0 |
12 Months or Greater, Gross Unrealized Losses | $ 0 | $ 0 |
Total, Number of Securities | 0 | 0 |
Total, Fair Value | $ 0 | $ 0 |
Total, Gross Unrealized Losses | $ 0 | $ 0 |
US States and Political Subdivisions Debt Securities [Member] | ||
Less than 12 Months, Number of Securities | 0 | 31 |
Less than 12 Months, Fair Value | $ 0 | $ 33,022,000 |
Less than 12 Months, Gross Unrealized Losses | $ 0 | $ 419,000 |
12 Months or Greater, Number of Securities | 0 | 1 |
12 Months or Greater, Fair Value | $ 0 | $ 264,000 |
12 Months or Greater, Gross Unrealized Losses | $ 0 | $ 3,000 |
Total, Number of Securities | 0 | 32 |
Total, Fair Value | $ 0 | $ 33,286,000 |
Total, Gross Unrealized Losses | $ 0 | $ 422,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Residential Mortgage [Member] | ||
Less than 12 Months, Number of Securities | 0 | 4 |
Less than 12 Months, Fair Value | $ 0 | $ 5,738,000 |
Less than 12 Months, Gross Unrealized Losses | $ 0 | $ 9,000 |
12 Months or Greater, Number of Securities | 2 | 0 |
12 Months or Greater, Fair Value | $ 335,000 | $ 0 |
12 Months or Greater, Gross Unrealized Losses | $ 1,000 | $ 0 |
Total, Number of Securities | 2 | 4 |
Total, Fair Value | $ 335,000 | $ 5,738,000 |
Total, Gross Unrealized Losses | $ 1,000 | $ 9,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Commercial Loan [Member] | ||
Less than 12 Months, Number of Securities | 0 | 16 |
Less than 12 Months, Fair Value | $ 0 | $ 67,969,000 |
Less than 12 Months, Gross Unrealized Losses | $ 0 | $ 601,000 |
12 Months or Greater, Number of Securities | 0 | 0 |
12 Months or Greater, Fair Value | $ 0 | $ 0 |
12 Months or Greater, Gross Unrealized Losses | $ 0 | $ 0 |
Total, Number of Securities | 0 | 16 |
Total, Fair Value | $ 0 | $ 67,969,000 |
Total, Gross Unrealized Losses | $ 0 | $ 601,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Total, Number of Securities | 2 | |
Residential Mortgage Backed Securities [Member] | ||
Less than 12 Months, Number of Securities | 0 | 7 |
Less than 12 Months, Fair Value | $ 0 | $ 16,779,000 |
Less than 12 Months, Gross Unrealized Losses | $ 0 | $ 161,000 |
12 Months or Greater, Number of Securities | 0 | 0 |
12 Months or Greater, Fair Value | $ 0 | $ 0 |
12 Months or Greater, Gross Unrealized Losses | $ 0 | $ 0 |
Total, Number of Securities | 0 | 7 |
Total, Fair Value | $ 0 | $ 16,779,000 |
Total, Gross Unrealized Losses | $ 0 | $ 161,000 |
Corporate Debt Securities [Member] | ||
Less than 12 Months, Number of Securities | 0 | 0 |
Less than 12 Months, Fair Value | $ 0 | $ 0 |
Less than 12 Months, Gross Unrealized Losses | $ 0 | $ 0 |
12 Months or Greater, Number of Securities | 1 | 1 |
12 Months or Greater, Fair Value | $ 420,000 | $ 423,000 |
12 Months or Greater, Gross Unrealized Losses | $ 80,000 | $ 77,000 |
Total, Number of Securities | 1 | 1 |
Total, Fair Value | $ 420,000 | $ 423,000 |
Total, Gross Unrealized Losses | $ 80,000 | $ 77,000 |
Negotiable Certificates of Deposit [Member] | ||
Less than 12 Months, Number of Securities | 0 | 12 |
Less than 12 Months, Fair Value | $ 0 | $ 2,913,000 |
Less than 12 Months, Gross Unrealized Losses | $ 0 | $ 11,000 |
12 Months or Greater, Number of Securities | 0 | 0 |
12 Months or Greater, Fair Value | $ 0 | $ 0 |
12 Months or Greater, Gross Unrealized Losses | $ 0 | $ 0 |
Total, Number of Securities | 0 | 12 |
Total, Fair Value | $ 0 | $ 2,913,000 |
Total, Gross Unrealized Losses | $ 0 | $ 11,000 |
Equity Securities [Member] | ||
Less than 12 Months, Number of Securities | 0 | 0 |
Less than 12 Months, Fair Value | $ 0 | $ 0 |
Less than 12 Months, Gross Unrealized Losses | $ 0 | $ 0 |
12 Months or Greater, Number of Securities | 1 | 1 |
12 Months or Greater, Fair Value | $ 951,000 | $ 938,000 |
12 Months or Greater, Gross Unrealized Losses | $ 49,000 | $ 62,000 |
Total, Number of Securities | 1 | 1 |
Total, Fair Value | $ 951,000 | $ 938,000 |
Total, Gross Unrealized Losses | $ 49,000 | $ 62,000 |
Less than 12 Months, Number of Securities | 0 | 70 |
Less than 12 Months, Fair Value | $ 0 | $ 126,421,000 |
Less than 12 Months, Gross Unrealized Losses | $ 0 | $ 1,201,000 |
12 Months or Greater, Number of Securities | 4 | 3 |
12 Months or Greater, Fair Value | $ 1,706,000 | $ 1,625,000 |
12 Months or Greater, Gross Unrealized Losses | $ 130,000 | $ 142,000 |
Total, Number of Securities | 4 | 73 |
Total, Fair Value | $ 1,706,000 | $ 128,046,000 |
Total, Gross Unrealized Losses | $ 130,000 | $ 1,343,000 |
Note 4 - Loans (Details Textual
Note 4 - Loans (Details Textual) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Troubled Debt Restructuring [Member] | |||||
Allowance for Loan and Lease Losses, Period Increase (Decrease) | $ 0 | ||||
Loans and Leases Receivable, Allowance | $ 274,000 | $ 274,000 | $ 295,000 | ||
Residential Portfolio Segment [Member] | |||||
Financing Receivable, Modifications, Number of Contracts | 3 | 5 | |||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 1 | 3 | |||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 37,000 | $ 145,000 | |||
Number of Real Estate Properties | 3 | 3 | 2 | ||
Other Real Estate | $ 268,000 | $ 268,000 | $ 41,000 | ||
Consumer Portfolio Segment [Member] | In Process of Foreclosure [Member] | |||||
Number of Real Estate Properties | 5 | 5 | |||
Consumer Portfolio Segment [Member] | |||||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | |||
Financing Receivable, Collectively Evaluated for Impairment | $ 125,021,000 | $ 125,021,000 | 128,182,000 | ||
Loans and Leases Receivable, Allowance | 1,350,000 | 1,350,000 | 1,494,000 | ||
Mortgage Loans in Process of Foreclosure, Amount | 162,000 | 162,000 | |||
One- to Four-family Mortgages [Member] | |||||
Recorded Investment of Mortgage Loans Sold | 1,600,000 | 3,300,000 | |||
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage | 563,000 | 563,000 | 683,000 | ||
Nonaccrual Loans [Member] | |||||
Financing Receivable, Collectively Evaluated for Impairment | 600,000 | 600,000 | 800,000 | ||
Performing Financial Instruments [Member] | |||||
Financing Receivable, Modifications, Recorded Investment | 4,000,000 | 4,000,000 | 5,000,000 | ||
Nonperforming Financial Instruments [Member] | |||||
Financing Receivable, Modifications, Recorded Investment | $ 900,000 | $ 900,000 | 800,000 | ||
Residential Real Estate, Foreclosed [Member] | |||||
Number of Real Estate Properties | 1 | 1 | |||
Real Estate Investment Property, Net | $ 237,000 | $ 237,000 | |||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | $ 0 | 0 | ||
Financing Receivable, Modifications, Number of Contracts | 4 | 0 | 7 | ||
Financing Receivable, Number of Troubled Debt Restructurings Re-defaulted in Period, Not Within 12 Months of Original Modification | 1 | 1 | |||
Financing Receivable, Troubled Debt Restructurings Re-defaulted in Period, Recorded Investment, Not Within 12 Months of Original Modification | $ 3,500,000 | $ 3,500,000 | |||
Financing Receivable, Recorded Investment, Nonaccrual Status | 2,700,000 | $ 2,700,000 | 3,800,000 | ||
Loans Still Classified as Non-accrual Status, Period of Past Due | 90 days | ||||
Financing Receivable, Collectively Evaluated for Impairment | 725,238,000 | $ 725,238,000 | 723,191,000 | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 59,000 | $ 96,000 | 127,000 | 187,000 | |
Financing Receivable, Modifications, Recorded Investment | 4,900,000 | 4,900,000 | 5,800,000 | ||
Loans and Leases Receivable, Allowance | $ 8,559,000 | $ 8,559,000 | $ 8,790,000 | ||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 912,000 |
Note 4 - Loans - Loans Receivab
Note 4 - Loans - Loans Receivable, Net, by Category (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Residential Portfolio Segment [Member] | ||
Loans receivable, gross | $ 136,483,000 | $ 130,696,000 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans receivable, gross | 244,282,000 | 245,198,000 |
Construction, Land Acquisition and Development [Member] | ||
Loans receivable, gross | 23,261,000 | 30,843,000 |
Commercial and Industrial [Member] | ||
Loans receivable, gross | 153,990,000 | 149,826,000 |
Consumer Portfolio Segment [Member] | ||
Loans receivable, gross | 125,321,000 | 128,533,000 |
Allowance for loan and lease losses | (1,350,000) | (1,494,000) |
State and Political Subdivisions [Member] | ||
Loans receivable, gross | 48,037,000 | 46,056,000 |
Allowance for loan and lease losses | (733,000) | (485,000) |
Loans receivable, gross | 731,374,000 | 731,152,000 |
Unearned income | (102,000) | (98,000) |
Net deferred loan costs | 2,448,000 | 2,662,000 |
Allowance for loan and lease losses | (8,559,000) | (8,790,000) |
Loans, net | $ 725,161,000 | $ 724,926,000 |
Note 4 - Loans - Activity in th
Note 4 - Loans - Activity in the Allowance for Loan Losses, by Loan Category (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | |||||
Beginning balance | $ 1,210,000 | $ 1,531,000 | $ 1,333,000 | $ 1,772,000 | |
Charge-offs | (1,000) | (24,000) | (69,000) | ||
Recoveries | 1,000 | 5,000 | 2,000 | 11,000 | |
Provision (credit) for loan and lease losses | (112,000) | (51,000) | (212,000) | (230,000) | |
Ending balance | 1,099,000 | 1,484,000 | 1,099,000 | 1,484,000 | |
Individually evaluated for impairment | 4,000 | 4,000 | $ 92,000 | ||
Collectively evaluated for impairment | 1,095,000 | 1,095,000 | 1,241,000 | ||
Loans and Leases Receivable, Allowance | 1,099,000 | 1,099,000 | 1,333,000 | ||
Individually evaluated for impairment | 2,108,000 | 2,108,000 | 2,930,000 | ||
Financing Receivable, Collectively Evaluated for Impairment | 134,375,000 | 134,375,000 | 127,766,000 | ||
Total loans | 136,483,000 | 136,483,000 | 130,696,000 | ||
Residential Portfolio Segment [Member] | |||||
Total loans | 136,483,000 | 136,483,000 | 130,696,000 | ||
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | |||||
Beginning balance | 3,291,000 | 4,331,000 | 3,346,000 | 4,663,000 | |
Charge-offs | (912,000) | (251,000) | (912,000) | ||
Recoveries | 2,000 | 16,000 | 3,000 | 18,000 | |
Provision (credit) for loan and lease losses | (198,000) | 606,000 | (3,000) | 272,000 | |
Ending balance | 3,095,000 | 4,041,000 | 3,095,000 | 4,041,000 | |
Individually evaluated for impairment | 269,000 | 269,000 | 287,000 | ||
Collectively evaluated for impairment | 2,826,000 | 2,826,000 | 3,059,000 | ||
Loans and Leases Receivable, Allowance | 3,095,000 | 3,095,000 | 3,346,000 | ||
Individually evaluated for impairment | 3,047,000 | 3,047,000 | 3,831,000 | ||
Financing Receivable, Collectively Evaluated for Impairment | 241,235,000 | 241,235,000 | 241,367,000 | ||
Total loans | 244,282,000 | 244,282,000 | 245,198,000 | ||
Commercial Real Estate Portfolio Segment [Member] | |||||
Total loans | 244,282,000 | 244,282,000 | 245,198,000 | ||
Construction, Land Acquisition and Development [Member] | Real Estate Loan [Member] | |||||
Beginning balance | 653,000 | 764,000 | 853,000 | 665,000 | |
Charge-offs | 0 | (6,000) | (6,000) | ||
Recoveries | 9,000 | 0 | 9,000 | ||
Provision (credit) for loan and lease losses | 55,000 | 20,000 | (145,000) | 119,000 | |
Ending balance | 717,000 | 778,000 | 717,000 | 778,000 | |
Individually evaluated for impairment | 0 | 0 | 1,000 | ||
Collectively evaluated for impairment | 717,000 | 717,000 | 852,000 | ||
Loans and Leases Receivable, Allowance | 717,000 | 717,000 | 853,000 | ||
Individually evaluated for impairment | 398,000 | 398,000 | 646,000 | ||
Financing Receivable, Collectively Evaluated for Impairment | 22,863,000 | 22,863,000 | 30,197,000 | ||
Total loans | 23,261,000 | 23,261,000 | 30,843,000 | ||
Construction, Land Acquisition and Development [Member] | |||||
Total loans | 23,261,000 | 23,261,000 | 30,843,000 | ||
Commercial Portfolio Segment [Member] | |||||
Beginning balance | 1,322,000 | 1,998,000 | 1,205,000 | 2,104,000 | |
Charge-offs | (496,000) | (72,000) | (1,064,000) | (142,000) | |
Recoveries | 118,000 | 102,000 | 212,000 | 167,000 | |
Provision (credit) for loan and lease losses | 621,000 | (150,000) | 1,212,000 | (251,000) | |
Ending balance | 1,565,000 | 1,878,000 | 1,565,000 | 1,878,000 | |
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 1,565,000 | 1,565,000 | 1,205,000 | ||
Loans and Leases Receivable, Allowance | 1,565,000 | 1,565,000 | 1,205,000 | ||
Individually evaluated for impairment | 283,000 | 283,000 | 203,000 | ||
Financing Receivable, Collectively Evaluated for Impairment | 153,707,000 | 153,707,000 | 149,623,000 | ||
Total loans | 153,990,000 | 153,990,000 | 149,826,000 | ||
Consumer Portfolio Segment [Member] | |||||
Beginning balance | 1,379,000 | 1,698,000 | 1,494,000 | 1,673,000 | |
Charge-offs | (213,000) | (201,000) | (518,000) | (340,000) | |
Recoveries | 107,000 | 108,000 | 308,000 | 230,000 | |
Provision (credit) for loan and lease losses | 77,000 | 38,000 | 66,000 | 80,000 | |
Ending balance | 1,350,000 | 1,643,000 | 1,350,000 | 1,643,000 | |
Individually evaluated for impairment | 1,000 | 1,000 | 1,000 | ||
Collectively evaluated for impairment | 1,349,000 | 1,349,000 | 1,493,000 | ||
Loans and Leases Receivable, Allowance | 1,350,000 | 1,350,000 | 1,494,000 | ||
Individually evaluated for impairment | 300,000 | 300,000 | 351,000 | ||
Financing Receivable, Collectively Evaluated for Impairment | 125,021,000 | 125,021,000 | 128,182,000 | ||
Total loans | 125,321,000 | 125,321,000 | 128,533,000 | ||
State and Political Subdivisions [Member] | |||||
Beginning balance | 780,000 | 583,000 | 485,000 | 598,000 | |
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision (credit) for loan and lease losses | (47,000) | (79,000) | 248,000 | (94,000) | |
Ending balance | 733,000 | 504,000 | 733,000 | 504,000 | |
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 733,000 | 733,000 | 485,000 | ||
Loans and Leases Receivable, Allowance | 733,000 | 733,000 | 485,000 | ||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Financing Receivable, Collectively Evaluated for Impairment | 48,037,000 | 48,037,000 | 46,056,000 | ||
Total loans | 48,037,000 | 48,037,000 | 46,056,000 | ||
Unallocated Financing Receivables [Member] | |||||
Beginning balance | 39,000 | 74,000 | 45,000 | ||
Charge-offs | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Provision (credit) for loan and lease losses | (39,000) | (74,000) | (45,000) | ||
Ending balance | 0 | 0 | |||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | 74,000 | ||
Loans and Leases Receivable, Allowance | 0 | 0 | 74,000 | ||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Financing Receivable, Collectively Evaluated for Impairment | 0 | 0 | 0 | ||
Total loans | 0 | 0 | 0 | ||
Beginning balance | 8,635,000 | 10,944,000 | 8,790,000 | 11,520,000 | |
Charge-offs | (709,000) | (1,192,000) | (1,857,000) | (1,469,000) | |
Recoveries | 237,000 | 231,000 | 534,000 | 426,000 | |
Provision (credit) for loan and lease losses | 396,000 | 345,000 | 1,092,000 | (149,000) | |
Ending balance | 8,559,000 | $ 10,328,000 | 8,559,000 | $ 10,328,000 | |
Individually evaluated for impairment | 274,000 | 274,000 | 381,000 | ||
Collectively evaluated for impairment | 8,285,000 | 8,285,000 | 8,409,000 | ||
Loans and Leases Receivable, Allowance | 8,559,000 | 8,559,000 | 8,790,000 | ||
Individually evaluated for impairment | 6,136,000 | 6,136,000 | 7,961,000 | ||
Financing Receivable, Collectively Evaluated for Impairment | 725,238,000 | 725,238,000 | 723,191,000 | ||
Total loans | $ 731,374,000 | $ 731,374,000 | $ 731,152,000 |
Note 4 - Loans - Investment in
Note 4 - Loans - Investment in Loans Receivable by Loan Category and Credit Quality Indicator (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Residential Portfolio Segment [Member] | Pass [Member] | Commercial Loans [Member] | ||
Total loans | $ 24,438,000 | $ 21,018,000 |
Residential Portfolio Segment [Member] | Special Mention [Member] | Commercial Loans [Member] | ||
Total loans | 383,000 | 449,000 |
Residential Portfolio Segment [Member] | Substandard [Member] | Commercial Loans [Member] | ||
Total loans | 533,000 | 984,000 |
Residential Portfolio Segment [Member] | Doubtful [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
Residential Portfolio Segment [Member] | Loss [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
Residential Portfolio Segment [Member] | Commercial Loans [Member] | ||
Total loans | 25,354,000 | 22,451,000 |
Residential Portfolio Segment [Member] | Accruing Loans [Member] | ||
Total loans | 110,336,000 | 107,204,000 |
Residential Portfolio Segment [Member] | Nonaccrual Loans [Member] | ||
Total loans | 793,000 | 1,041,000 |
Residential Portfolio Segment [Member] | Subtotal, Other Loans [Member] | ||
Total loans | 111,129,000 | 108,245,000 |
Residential Portfolio Segment [Member] | ||
Total loans | 136,483,000 | 130,696,000 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Commercial Loans [Member] | ||
Total loans | 230,718,000 | 225,850,000 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Commercial Loans [Member] | ||
Total loans | 6,267,000 | 11,356,000 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Commercial Loans [Member] | ||
Total loans | 7,297,000 | 7,992,000 |
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Loss [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Commercial Loans [Member] | ||
Total loans | 244,282,000 | 245,198,000 |
Commercial Real Estate Portfolio Segment [Member] | Accruing Loans [Member] | ||
Total loans | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Nonaccrual Loans [Member] | ||
Total loans | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Subtotal, Other Loans [Member] | ||
Total loans | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | ||
Total loans | 244,282,000 | 245,198,000 |
Construction, Land Acquisition and Development [Member] | Pass [Member] | Commercial Loans [Member] | ||
Total loans | 14,497,000 | 23,946,000 |
Construction, Land Acquisition and Development [Member] | Special Mention [Member] | Commercial Loans [Member] | ||
Total loans | 352,000 | 358,000 |
Construction, Land Acquisition and Development [Member] | Substandard [Member] | Commercial Loans [Member] | ||
Total loans | 4,620,000 | 5,137,000 |
Construction, Land Acquisition and Development [Member] | Doubtful [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
Construction, Land Acquisition and Development [Member] | Loss [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
Construction, Land Acquisition and Development [Member] | Commercial Loans [Member] | ||
Total loans | 19,469,000 | 29,441,000 |
Construction, Land Acquisition and Development [Member] | Accruing Loans [Member] | ||
Total loans | 3,786,000 | 1,402,000 |
Construction, Land Acquisition and Development [Member] | Nonaccrual Loans [Member] | ||
Total loans | 6,000 | 0 |
Construction, Land Acquisition and Development [Member] | Subtotal, Other Loans [Member] | ||
Total loans | 3,792,000 | 1,402,000 |
Construction, Land Acquisition and Development [Member] | ||
Total loans | 23,261,000 | 30,843,000 |
Commercial and Industrial [Member] | Pass [Member] | Commercial Loans [Member] | ||
Total loans | 146,271,000 | 142,242,000 |
Commercial and Industrial [Member] | Special Mention [Member] | Commercial Loans [Member] | ||
Total loans | 858,000 | 595,000 |
Commercial and Industrial [Member] | Substandard [Member] | Commercial Loans [Member] | ||
Total loans | 2,180,000 | 2,209,000 |
Commercial and Industrial [Member] | Doubtful [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
Commercial and Industrial [Member] | Loss [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
Commercial and Industrial [Member] | Commercial Loans [Member] | ||
Total loans | 149,309,000 | 145,046,000 |
Commercial and Industrial [Member] | Accruing Loans [Member] | ||
Total loans | 4,681,000 | 4,775,000 |
Commercial and Industrial [Member] | Nonaccrual Loans [Member] | ||
Total loans | 0 | 5,000 |
Commercial and Industrial [Member] | Subtotal, Other Loans [Member] | ||
Total loans | 4,681,000 | 4,780,000 |
Commercial and Industrial [Member] | ||
Total loans | 153,990,000 | 149,826,000 |
Consumer Portfolio Segment [Member] | Pass [Member] | Commercial Loans [Member] | ||
Total loans | 2,873,000 | 2,747,000 |
Consumer Portfolio Segment [Member] | Special Mention [Member] | Commercial Loans [Member] | ||
Total loans | 2,000 | 9,000 |
Consumer Portfolio Segment [Member] | Substandard [Member] | Commercial Loans [Member] | ||
Total loans | 38,000 | 39,000 |
Consumer Portfolio Segment [Member] | Doubtful [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
Consumer Portfolio Segment [Member] | Loss [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
Consumer Portfolio Segment [Member] | Commercial Loans [Member] | ||
Total loans | 2,913,000 | 2,795,000 |
Consumer Portfolio Segment [Member] | Accruing Loans [Member] | ||
Total loans | 122,224,000 | 125,392,000 |
Consumer Portfolio Segment [Member] | Nonaccrual Loans [Member] | ||
Total loans | 184,000 | 346,000 |
Consumer Portfolio Segment [Member] | Subtotal, Other Loans [Member] | ||
Total loans | 122,408,000 | 125,738,000 |
Consumer Portfolio Segment [Member] | ||
Total loans | 125,321,000 | 128,533,000 |
State and Political Subdivisions [Member] | Pass [Member] | Commercial Loans [Member] | ||
Total loans | 41,754,000 | 45,464,000 |
State and Political Subdivisions [Member] | Special Mention [Member] | Commercial Loans [Member] | ||
Total loans | 5,891,000 | 120,000 |
State and Political Subdivisions [Member] | Substandard [Member] | Commercial Loans [Member] | ||
Total loans | 392,000 | 472,000 |
State and Political Subdivisions [Member] | Doubtful [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
State and Political Subdivisions [Member] | Loss [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
State and Political Subdivisions [Member] | Commercial Loans [Member] | ||
Total loans | 48,037,000 | 46,056,000 |
State and Political Subdivisions [Member] | Accruing Loans [Member] | ||
Total loans | 0 | 0 |
State and Political Subdivisions [Member] | Nonaccrual Loans [Member] | ||
Total loans | 0 | 0 |
State and Political Subdivisions [Member] | Subtotal, Other Loans [Member] | ||
Total loans | 0 | 0 |
State and Political Subdivisions [Member] | ||
Total loans | 48,037,000 | 46,056,000 |
Pass [Member] | Commercial Loans [Member] | ||
Total loans | 460,551,000 | 461,267,000 |
Special Mention [Member] | Commercial Loans [Member] | ||
Total loans | 13,753,000 | 12,887,000 |
Substandard [Member] | Commercial Loans [Member] | ||
Total loans | 15,060,000 | 16,833,000 |
Doubtful [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
Loss [Member] | Commercial Loans [Member] | ||
Total loans | 0 | 0 |
Commercial Loans [Member] | ||
Total loans | 489,364,000 | 490,987,000 |
Accruing Loans [Member] | ||
Total loans | 241,027,000 | 238,773,000 |
Nonaccrual Loans [Member] | ||
Total loans | 983,000 | 1,392,000 |
Subtotal, Other Loans [Member] | ||
Total loans | 242,010,000 | 240,165,000 |
Total loans | $ 731,374,000 | $ 731,152,000 |
Note 4 - Loans - Performing and
Note 4 - Loans - Performing and Non-performing Loan Delinquency Status (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | $ 135,136,000 | $ 129,206,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 403,000 | 923,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 242,608,000 | 243,168,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Construction, Land Acquisition and Development [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 22,856,000 | 30,475,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Construction, Land Acquisition and Development [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 291,000 | 342,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Commercial and Industrial [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 153,315,000 | 149,329,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Commercial and Industrial [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 0 | 98,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 123,997,000 | 126,760,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 68,000 | 69,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | State and Political Subdivisions [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 48,037,000 | 46,056,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | State and Political Subdivisions [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 176,000 | 1,576,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 400,600,000 | 402,849,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 870,000 | 2,841,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 725,949,000 | 724,994,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 938,000 | 3,008,000 |
Financing Receivables, 1 to 29 Days Past Due [Member] | ||
Loans past due | 726,887,000 | 728,002,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 285,000 | 51,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 3,000 | 99,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 118,000 | 53,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction, Land Acquisition and Development [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 18,000 | 26,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Construction, Land Acquisition and Development [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial and Industrial [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 317,000 | 236,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial and Industrial [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 260,000 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 908,000 | 994,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 8,000 | 21,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | State and Political Subdivisions [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | State and Political Subdivisions [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 421,000 | 130,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 3,000 | 99,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 1,646,000 | 1,360,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 271,000 | 120,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans past due | 1,917,000 | 1,480,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 109,000 | 225,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 21,000 | 44,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 592,000 | 286,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction, Land Acquisition and Development [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 90,000 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Construction, Land Acquisition and Development [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial and Industrial [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 17,000 | 66,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial and Industrial [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 25,000 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 232,000 | 433,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 11,000 | 3,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | State and Political Subdivisions [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | State and Political Subdivisions [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 108,000 | 115,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 791,000 | 511,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 129,000 | 159,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 1,040,000 | 1,010,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 165,000 | 162,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans past due | 1,205,000 | 1,172,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 526,000 | 148,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction, Land Acquisition and Development [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction, Land Acquisition and Development [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 6,000 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial and Industrial [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial and Industrial [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 56,000 | 97,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 97,000 | 253,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | State and Political Subdivisions [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | State and Political Subdivisions [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 680,000 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 1,212,000 | 148,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 1,365,000 | 498,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans past due | 1,365,000 | 498,000 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 135,530,000 | 129,482,000 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 953,000 | 1,214,000 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 243,318,000 | 243,507,000 |
Construction, Land Acquisition and Development [Member] | Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 22,964,000 | 30,501,000 |
Construction, Land Acquisition and Development [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 297,000 | 342,000 |
Commercial and Industrial [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 153,649,000 | 149,631,000 |
Commercial and Industrial [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 341,000 | 195,000 |
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 125,137,000 | 128,187,000 |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 184,000 | 346,000 |
State and Political Subdivisions [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 48,037,000 | 46,056,000 |
State and Political Subdivisions [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 0 | 0 |
Commercial Portfolio Segment [Member] | Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 964,000 | 1,691,000 |
Real Estate Loan [Member] | Performing Financial Instruments [Member] | ||
Loans past due | 401,812,000 | 403,490,000 |
Real Estate Loan [Member] | Nonperforming Financial Instruments [Member] | ||
Loans past due | 2,214,000 | 3,247,000 |
Performing Financial Instruments [Member] | ||
Loans past due | 728,635,000 | 727,364,000 |
Nonperforming Financial Instruments [Member] | ||
Loans past due | 2,739,000 | 3,788,000 |
Loans past due | $ 731,374,000 | $ 731,152,000 |
Note 4 - Loans - Impaired Loans
Note 4 - Loans - Impaired Loans (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Recorded investment, with no allowance recorded | $ 815,000 | $ 1,042,000 |
Unpaid principal balance, with no allowance recorded | 899,000 | 1,138,000 |
Recorded investment, with a related allowance recorded | 1,293,000 | 1,888,000 |
Unpaid principal balance, with a related allowance recorded | 1,293,000 | 1,888,000 |
Related allowance | 4,000 | 92,000 |
Recorded investment | 2,108,000 | 2,930,000 |
Unpaid principal balance | 2,192,000 | 3,026,000 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | ||
Recorded investment, with no allowance recorded | 1,132,000 | 1,850,000 |
Unpaid principal balance, with no allowance recorded | 2,154,000 | 2,868,000 |
Recorded investment, with a related allowance recorded | 1,915,000 | 1,981,000 |
Unpaid principal balance, with a related allowance recorded | 1,915,000 | 1,981,000 |
Related allowance | 269,000 | 287,000 |
Recorded investment | 3,047,000 | 3,831,000 |
Unpaid principal balance | 4,069,000 | 4,849,000 |
Construction, Land Acquisition and Development [Member] | Real Estate Loan [Member] | ||
Recorded investment, with no allowance recorded | 398,000 | 470,000 |
Unpaid principal balance, with no allowance recorded | 793,000 | 844,000 |
Recorded investment, with a related allowance recorded | 0 | 176,000 |
Unpaid principal balance, with a related allowance recorded | 0 | 176,000 |
Related allowance | 0 | 1,000 |
Recorded investment | 398,000 | 646,000 |
Unpaid principal balance | 793,000 | 1,020,000 |
Commercial and Industrial [Member] | ||
Recorded investment, with no allowance recorded | 283,000 | 124,000 |
Unpaid principal balance, with no allowance recorded | 505,000 | 156,000 |
Recorded investment, with a related allowance recorded | 0 | 79,000 |
Unpaid principal balance, with a related allowance recorded | 0 | 79,000 |
Related allowance | 0 | 0 |
Recorded investment | 283,000 | 203,000 |
Unpaid principal balance | 505,000 | 235,000 |
Consumer Portfolio Segment [Member] | ||
Recorded investment, with no allowance recorded | 0 | 0 |
Unpaid principal balance, with no allowance recorded | 0 | 0 |
Recorded investment, with a related allowance recorded | 300,000 | 351,000 |
Unpaid principal balance, with a related allowance recorded | 300,000 | 351,000 |
Related allowance | 1,000 | 1,000 |
Recorded investment | 300,000 | 351,000 |
Unpaid principal balance | 300,000 | 351,000 |
State and Political Subdivisions [Member] | ||
Recorded investment, with no allowance recorded | 0 | 0 |
Unpaid principal balance, with no allowance recorded | 0 | 0 |
Recorded investment, with a related allowance recorded | 0 | 0 |
Unpaid principal balance, with a related allowance recorded | 0 | 0 |
Related allowance | 0 | 0 |
Recorded investment | 0 | 0 |
Unpaid principal balance | 0 | 0 |
Real Estate Loan [Member] | ||
Recorded investment, with no allowance recorded | 2,345,000 | 3,362,000 |
Unpaid principal balance, with no allowance recorded | 3,846,000 | 4,850,000 |
Recorded investment, with a related allowance recorded | 3,208,000 | 4,045,000 |
Unpaid principal balance, with a related allowance recorded | 3,208,000 | 4,045,000 |
Related allowance | 273,000 | 380,000 |
Recorded investment | 5,553,000 | 7,407,000 |
Unpaid principal balance | 7,054,000 | 8,895,000 |
Recorded investment, with no allowance recorded | 2,628,000 | 3,486,000 |
Unpaid principal balance, with no allowance recorded | 4,351,000 | 5,006,000 |
Recorded investment, with a related allowance recorded | 3,508,000 | 4,475,000 |
Unpaid principal balance, with a related allowance recorded | 3,508,000 | 4,475,000 |
Related allowance | 274,000 | 381,000 |
Recorded investment | 6,136,000 | 7,961,000 |
Unpaid principal balance | $ 7,859,000 | $ 9,481,000 |
Note 4 - Loans - Average Balanc
Note 4 - Loans - Average Balance and Interest Income by Loan Category Recognized on Impaired Loans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Residential Portfolio Segment [Member] | Real Estate Loan [Member] | |||||
Average Balance | $ 2,278,000 | $ 2,666,000 | $ 2,577,000 | $ 2,782,000 | |
Interest Income | [1] | 22,000 | 31,000 | 48,000 | 64,000 |
Commercial Real Estate Portfolio Segment [Member] | Real Estate Loan [Member] | |||||
Average Balance | 3,279,000 | 6,601,000 | 3,531,000 | 6,584,000 | |
Interest Income | [1] | 23,000 | 28,000 | 46,000 | 58,000 |
Construction, Land Acquisition and Development [Member] | Real Estate Loan [Member] | |||||
Average Balance | 411,000 | 343,000 | 488,000 | 346,000 | |
Interest Income | [1] | 1,000 | 5,000 | 4,000 | 9,000 |
Commercial and Industrial [Member] | |||||
Average Balance | 343,000 | 30,000 | 390,000 | 30,000 | |
Interest Income | [1] | 1,000 | 0 | 2,000 | 0 |
Consumer Portfolio Segment [Member] | |||||
Average Balance | 349,000 | 357,000 | 349,000 | 358,000 | |
Interest Income | [1] | 3,000 | 3,000 | 6,000 | 6,000 |
State and Political Subdivisions [Member] | |||||
Average Balance | 0 | 0 | 0 | 0 | |
Interest Income | [1] | 0 | 0 | 0 | 0 |
Real Estate Loan [Member] | |||||
Average Balance | 5,968,000 | 9,610,000 | 6,596,000 | 9,712,000 | |
Interest Income | [1] | 46,000 | 64,000 | 98,000 | 131,000 |
Average Balance | 6,660,000 | 9,997,000 | 7,335,000 | 10,100,000 | |
Interest Income | [1] | $ 50,000 | $ 67,000 | $ 106,000 | $ 137,000 |
[1] | Interest income represents income recognized on performing TDRs. |
Note 4 - Loans - Investment i41
Note 4 - Loans - Investment in Loans Modified as TDRs by Loan Category (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015USD ($) | Jun. 30, 2016 | Jun. 30, 2015USD ($) | |
Residential Portfolio Segment [Member] | |||
Financing Receivable, Modifications, Number of Contracts | 3 | 5 | |
Pre-modification Outstanding Recorded Investments | $ 154,000 | $ 810,000 | |
Post-modification Outstanding Recorded Investments | $ 171,000 | $ 827,000 | |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Modifications, Number of Contracts | 1 | 1 | |
Pre-modification Outstanding Recorded Investments | $ 1,654,000 | $ 1,654,000 | |
Post-modification Outstanding Recorded Investments | $ 742,000 | $ 742,000 | |
Construction, Land Acquisition and Development [Member] | |||
Financing Receivable, Modifications, Number of Contracts | 0 | 1 | |
Pre-modification Outstanding Recorded Investments | $ 0 | $ 96,000 | |
Post-modification Outstanding Recorded Investments | $ 0 | $ 96,000 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | |
Pre-modification Outstanding Recorded Investments | $ 0 | $ 0 | |
Post-modification Outstanding Recorded Investments | $ 0 | $ 0 | |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | |
Pre-modification Outstanding Recorded Investments | $ 0 | $ 0 | |
Post-modification Outstanding Recorded Investments | $ 0 | $ 0 | |
State and Political Subdivisions [Member] | |||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | |
Pre-modification Outstanding Recorded Investments | $ 0 | $ 0 | |
Post-modification Outstanding Recorded Investments | $ 0 | $ 0 | |
Financing Receivable, Modifications, Number of Contracts | 4 | 0 | 7 |
Pre-modification Outstanding Recorded Investments | $ 1,808,000 | $ 2,560,000 | |
Post-modification Outstanding Recorded Investments | $ 913,000 | $ 0 |
Note 4 - Loans - Types of Modif
Note 4 - Loans - Types of Modifications (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | |
Residential Portfolio Segment [Member] | Extended Maturity [Member] | ||
Financing receivable, modifications | $ 53 | $ 709 |
Residential Portfolio Segment [Member] | Extended Maturity and Capitalization of Taxes [Member] | ||
Financing receivable, modifications | 118 | 118 |
Residential Portfolio Segment [Member] | Principal Forbearance [Member] | ||
Financing receivable, modifications | 0 | 0 |
Residential Portfolio Segment [Member] | ||
Financing receivable, modifications | 171 | 827 |
Commercial Real Estate Portfolio Segment [Member] | Extended Maturity [Member] | ||
Financing receivable, modifications | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Extended Maturity and Capitalization of Taxes [Member] | ||
Financing receivable, modifications | 0 | 0 |
Commercial Real Estate Portfolio Segment [Member] | Principal Forbearance [Member] | ||
Financing receivable, modifications | 1,654 | 1,654 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing receivable, modifications | 1,654 | 1,654 |
Construction, Land Acquisition and Development [Member] | Extended Maturity [Member] | ||
Financing receivable, modifications | 0 | 96 |
Construction, Land Acquisition and Development [Member] | Extended Maturity and Capitalization of Taxes [Member] | ||
Financing receivable, modifications | 0 | 0 |
Construction, Land Acquisition and Development [Member] | Principal Forbearance [Member] | ||
Financing receivable, modifications | 0 | 0 |
Construction, Land Acquisition and Development [Member] | ||
Financing receivable, modifications | 0 | 96 |
Commercial and Industrial [Member] | Extended Maturity [Member] | ||
Financing receivable, modifications | 0 | 0 |
Commercial and Industrial [Member] | Extended Maturity and Capitalization of Taxes [Member] | ||
Financing receivable, modifications | 0 | 0 |
Commercial and Industrial [Member] | Principal Forbearance [Member] | ||
Financing receivable, modifications | 0 | 0 |
Commercial and Industrial [Member] | ||
Financing receivable, modifications | 0 | 0 |
Consumer Portfolio Segment [Member] | Extended Maturity [Member] | ||
Financing receivable, modifications | 0 | 0 |
Consumer Portfolio Segment [Member] | Extended Maturity and Capitalization of Taxes [Member] | ||
Financing receivable, modifications | 0 | 0 |
Consumer Portfolio Segment [Member] | Principal Forbearance [Member] | ||
Financing receivable, modifications | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Financing receivable, modifications | 0 | 0 |
State and Political Subdivisions [Member] | Extended Maturity [Member] | ||
Financing receivable, modifications | 0 | 0 |
State and Political Subdivisions [Member] | Extended Maturity and Capitalization of Taxes [Member] | ||
Financing receivable, modifications | 0 | 0 |
State and Political Subdivisions [Member] | Principal Forbearance [Member] | ||
Financing receivable, modifications | 0 | 0 |
State and Political Subdivisions [Member] | ||
Financing receivable, modifications | 0 | 0 |
Extended Maturity [Member] | ||
Financing receivable, modifications | 53 | 805 |
Extended Maturity and Capitalization of Taxes [Member] | ||
Financing receivable, modifications | 118 | 118 |
Principal Forbearance [Member] | ||
Financing receivable, modifications | 1,654 | 1,654 |
Financing receivable, modifications | $ 1,825 | $ 2,577 |
Note 5 - Income Taxes (Details
Note 5 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
AMT Credit [Member] | ||||
Tax Credit Carryforward, Amount | $ 2,500 | $ 2,500 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | 34.00% | 34.00% |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 2,500 | $ 2,500 | ||
Operating Loss Carryforwards | 55,600 | 55,600 | ||
Deferred Tax Assets, Operating Loss Carryforwards | 18,900 | 18,900 | ||
Charitable Contribution Carryovers | 1,000 | 1,000 | ||
Deferred Tax Assets, Charitable Contribution Carryforwards | $ 355 | $ 355 |
Note 5 - Income Taxes - Effecti
Note 5 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Provision at statutory tax rates | $ 777 | $ 286 | $ 1,243 | $ 1,446 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | 34.00% | 34.00% |
Tax effects of non-taxable income | $ (125) | $ (119) | $ (253) | $ (246) |
Tax effects of non-taxable income | (5.47%) | (14.13%) | (6.92%) | (5.78%) |
Non-deductible interest expense | $ 3 | $ 3 | $ 5 | $ 5 |
Non-deductible interest expense | 0.13% | 0.36% | 0.14% | 0.12% |
Bank-owned life insurance | $ (49) | $ (46) | $ (98) | $ (92) |
Bank-owned life insurance | (2.13%) | (5.46%) | (2.69%) | (2.16%) |
Change in valuation allowance | $ (8) | |||
Change in valuation allowance | 0.00% | 0.00% | (0.22%) | 0.00% |
Other items, net | $ 55 | $ (102) | $ (2) | $ (1,154) |
Other items, net | 2.38% | (12.16%) | (0.04%) | (27.13%) |
Income tax provision (benefit) | $ 661 | $ 22 | $ 887 | $ (40) |
Income tax provision (benefit) | 28.92% | 2.62% | 24.27% | (0.94%) |
Note 6 - Related Party Transa45
Note 6 - Related Party Transactions (Details Textual) - USD ($) | Mar. 01, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2014 |
Directors, Executive Officers and Their Related Parties [Member] | Nonperforming Financial Instruments [Member] | |||||||||
Loans and Leases Receivable, Related Parties | $ 0 | $ 0 | |||||||
Directors, Executive Officers and Their Related Parties [Member] | |||||||||
Related Party Transactions, Interest Paid on Deposits | 94,000 | $ 0 | |||||||
Related Party Transactions, Subordinated Debt | 8,600,000 | 8,600,000 | $ 8,600,000 | ||||||
Related Party Deposit Liabilities | 91,800,000 | 91,800,000 | 106,100,000 | ||||||
Related Party Transaction, Interest Paid | 197,000 | ||||||||
Related Party Transaction, Payments of Previously Deferred and Accrued Interest | $ 3,900,000 | ||||||||
Director [Member] | Line of Credit [Member] | Commercial Loan [Member] | |||||||||
Loans and Leases Receivable, Net Amount | $ 11,000,000 | ||||||||
Director [Member] | Annual Servicing Fee on Participation Balance [Member] | |||||||||
Related Party Transaction, Rate | 0.25% | ||||||||
Director [Member] | |||||||||
Related Party Transaction, Amount of Participation Interest | $ 5,200,000 | ||||||||
Related Party Transaction, Amount of Participation Interest Outstanding | 4,400,000 | ||||||||
Payments for Goods and Services [Member] | |||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 400,000 | $ 400,000 | 900,000 | 800,000 | |||||
Loans and Leases Receivable, Related Parties | 43,664,000 | $ 40,486,000 | 43,664,000 | $ 40,486,000 | 52,652,000 | $ 43,966,000 | $ 42,264,000 | $ 36,783,000 | |
Loans and Leases Receivable, Net Amount | $ 725,161,000 | 725,161,000 | $ 724,926,000 | ||||||
Related Party Transaction, Interest Paid | $ 320,000 | ||||||||
Related Party Transaction, Payments of Previously Deferred and Accrued Interest | $ 10,800,000 |
Note 6 - Related Party Transa46
Note 6 - Related Party Transactions - Related Party Loans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Balance | $ 43,966,000 | $ 42,264,000 | $ 52,652,000 | $ 36,783,000 | |
Additions, new loans and advances | 1,217,000 | 7,513,000 | 7,212,000 | 31,401,000 | |
Repayments | (1,498,000) | (9,291,000) | (16,179,000) | (27,698,000) | |
Other (1) | [1] | (21,000) | 0 | (21,000) | 0 |
Balance | $ 43,664,000 | $ 40,486,000 | $ 43,664,000 | $ 40,486,000 | |
[1] | Represents loans to related parties that ceased being an insider during the period. |
Note 7 - Contingencies (Details
Note 7 - Contingencies (Details Textual) | Dec. 17, 2015USD ($) | Apr. 01, 2014USD ($) | Mar. 28, 2014USD ($) | Jun. 30, 2016USD ($) | Feb. 04, 2014USD ($) | Dec. 31, 2013USD ($) |
Consumer Protection Class Action [Member] | ||||||
Litigation Settlement, Amount | $ (750,000) | |||||
Loss Contingency, Number of Plaintiffs | 430 | |||||
Aggregate Amount Received By Defendants, Unjust Enrichment, Maximum | $ 45,000 | |||||
Consumer Class Action [Member] | ||||||
Litigation Settlement, Amount | $ (750,000) | |||||
Loss Contingency, Number of Plaintiffs | 430 | |||||
Aggregate Amount Received By Defendants, Unjust Enrichment, Maximum | $ 45,000 | |||||
Derivative Liability | $ 5,000,000 | |||||
Litigation Settlement, Amount | $ 5,000,000 | |||||
Accrued Liabilities and Other Liabilities | $ 2,500,000 | $ 2,500,000 | ||||
Litigation Settlement Fees and Costs | $ 2,500,000 | |||||
Partial Indemnification, Individual Defendants Paid | $ 2,500,000 |
Note 8 - Stock Compensation P48
Note 8 - Stock Compensation Plans (Details Textual) - USD ($) | Mar. 01, 2016 | Mar. 01, 2015 | Mar. 01, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Oct. 23, 2013 |
The 2000 Employee Stock Incentive Plan [Member] | Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,100,000 | 1,100,000 | ||||||
The 2000 Employee Stock Incentive Plan [Member] | ||||||||
Allocated Share-based Compensation Expense | $ 0 | $ 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 180 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||
Long-Term Incentive Compensation Plan [Member] | Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 84,900 | 45,750 | ||||||
Long-Term Incentive Compensation Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,200,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 67,600 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,021,030 | 1,021,030 | ||||||
Restricted Stock [Member] | ||||||||
Allocated Share-based Compensation Expense | $ 129,000 | $ 110,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 67,600 | 84,900 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 557,000 | $ 590,000 | $ 557,000 | $ 590,000 |
Note 8 - Stock Compensation P49
Note 8 - Stock Compensation Plans (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Unvested at January 1, (in shares) | 164,371 | 113,791 | 112,958 | 45,750 |
Unvested at January 1, (in dollars per share) | $ 5.73 | $ 5.99 | $ 5.99 | $ 6.70 |
Awards granted (in shares) | 67,600 | 84,900 | ||
Awards granted (in dollars per share) | $ 5.53 | $ 5.75 | ||
Forfeitures (in shares) | (18,114) | (18,114) | (333) | |
Forfeitures (in dollars per share) | $ 5.62 | $ 5.62 | $ 6.70 | |
Vestings (in shares) | (36,661) | (52,848) | (16,526) | |
Vestings (in dollars per share) | $ 5.72 | $ 6.02 | $ 6.70 | |
Unvested at June 30, (in shares) | 109,596 | 113,791 | 109,596 | 113,791 |
Unvested at June 30, (in dollars per share) | $ 5.75 | $ 5.99 | $ 5.75 | $ 5.99 |
Note 9 - Regulatory Matters (De
Note 9 - Regulatory Matters (Details Textual) - $ / shares | Jul. 29, 2016 | Apr. 27, 2016 | Jan. 01, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Subsequent Event [Member] | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.02 | ||||||
Effective January 2019 [Member] | |||||||
Common Equity Tier One Capital Conservation Buffer | 2.50% | 2.50% | |||||
Effective January 2016 [Member] | |||||||
Common Equity Tier One Capital Conservation Buffer | 0.625% | 0.625% | |||||
Common Stock, Dividends, Per Share, Declared | $ 0.02 | $ 0.02 | $ 0.04 | ||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.04 | ||||||
Capital to Risk Weighted Assets | 8.00% | 8.00% | |||||
Tier One Risk Based Capital to Risk Weighted Assets | 6.00% | 6.00% | |||||
Common Equity Tier One Capital to Risk Weighted Assets | 4.50% | 4.50% | |||||
Tier One Leverage Capital to Average Assets | 4.00% | 4.00% | |||||
Common Equity Tier One Capital Conservation Buffer Implementation of Deductions and Other Adjustments to Common Equity Tier One Capital Phase in Percentage Year | 40.00% | ||||||
Common Equity Tier One Capital Conservation Buffer Implementation of Deductions and Other Adjustments to Common Equity Tier One Capital Phase in Percentage Year 2 | 60.00% | ||||||
Common Equity Tier One Capital Conservation Buffer Implementation of Deductions and Other Adjustments to Common Equity Tier One Capital Phase in Percentage After Year Two | 20.00% |
Note 9 - Regulatory Matters - R
Note 9 - Regulatory Matters - Risk-based Capital and Related Ratios (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Parent Company [Member] | ||
Total capital (to risk-weighted assets) - Amount | $ 95,277 | $ 93,835 |
Total capital (to risk-weighted assets) - Ratio | 12.00% | 11.79% |
Tier I capital (to risk-weighted assets) - Amount | $ 78,068 | $ 74,945 |
Tier I capital (to risk-weighted assets) - Ratio | 9.83% | 9.42% |
Tier I common equity (to risk-weighted assets) - Amount | $ 76,324 | $ 74,945 |
Tier I common equity (to risk-weighted assets) - Ratio | 9.61% | 9.42% |
Tier I capital (to average assets) - Amount | $ 78,068 | $ 74,945 |
Tier I capital (to average assets) - Ratio | 7.31% | 7.27% |
Total risk-weighted assets | $ 794,269 | $ 795,887 |
Total average assets | 1,067,634 | 1,031,426 |
Subsidiaries [Member] | ||
Total capital (to risk-weighted assets) - Amount | $ 102,930 | $ 110,039 |
Total capital (to risk-weighted assets) - Ratio | 12.97% | 13.83% |
Tier I capital (to risk-weighted assets) - Amount | $ 94,120 | $ 100,949 |
Tier I capital (to risk-weighted assets) - Ratio | 11.86% | 12.69% |
Tier I common equity (to risk-weighted assets) - Amount | $ 94,120 | $ 100,949 |
Tier I common equity (to risk-weighted assets) - Ratio | 11.86% | 12.69% |
Tier I capital (to average assets) - Amount | $ 94,120 | $ 100,949 |
Tier I capital (to average assets) - Ratio | 8.82% | 9.79% |
Total risk-weighted assets | $ 793,841 | $ 795,490 |
Total average assets | $ 1,067,617 | $ 1,030,828 |
Total capital (to risk-weighted assets) - Ratio | 8.00% | |
Total capital (to risk-weighted assets) - Minimum required for capital adequacy purposes | 8.00% | 8.00% |
Total capital (to risk-weighted assets) - Minimum required for capital adequacy purposes with conservation buffer | 8.625% | |
Total capital (to risk-weighted assets) - To be well capitalized under prompt corrective action | 10.00% | 10.00% |
Tier I capital (to risk-weighted assets) - Ratio | 6.00% | |
Tier I capital (to risk-weighted assets) - Minimum required for capital adequacy purposes | 6.00% | 6.00% |
Tier I capital (to risk-weighted assets) - Minimum required for capital adequacy purposes with conservation buffer | 6.625% | |
Tier I capital (to risk-weighted assets) - To be well capitalized under prompt corrective action | 8.00% | 8.00% |
Tier I common equity (to risk-weighted assets) - Ratio | 4.50% | |
Tier I common equity (to risk-weighted assets) - Minimum required for capital adequacy purposes | 4.50% | 4.50% |
Tier I common equity (to risk-weighted assets) - Minimum required for capital adequacy purposes with conservation buffer | 5.125% | |
Tier I common equity (to risk-weighted assets) - To be well capitalized under prompt corrective action | 6.50% | 6.50% |
Tier I capital (to average assets) - Ratio | 4.00% | |
Tier I capital (to average assets) - Minimum required for capital adequacy purposes | 4.00% | 4.00% |
Tier I capital (to average assets) - Minimum required for capital adequacy purposes with conservation buffer | 4.00% | |
Tier I capital (to average assets) - To be well capitalized under prompt corrective action | 5.00% | 5.00% |
Note 10 - Fair Value Measurem52
Note 10 - Fair Value Measurements (Details Textual) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale Securities | $ 0 | $ 0 |
Available-for-sale Securities | $ 262,190,000 | $ 253,773,000 |
Note 10 - Fair Value Measurem53
Note 10 - Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale, at fair value | $ 0 | $ 0 |
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 12,724,000 | 44,043,000 |
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | ||
Securities available for sale, at fair value | 12,724,000 | 44,043,000 |
Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 102,206,000 | 75,407,000 |
Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Securities available for sale, at fair value | 102,206,000 | 75,407,000 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 1 [Member] | Residential Mortgage [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 1 [Member] | Commercial Loan [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 2 [Member] | Residential Mortgage [Member] | ||
Securities available for sale, at fair value | 21,013,000 | 22,269,000 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Loan [Member] | ||
Securities available for sale, at fair value | 102,861,000 | 89,423,000 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 3 [Member] | Residential Mortgage [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Loan [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Residential Mortgage [Member] | ||
Securities available for sale, at fair value | 21,013,000 | 22,269,000 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Commercial Loan [Member] | ||
Securities available for sale, at fair value | 102,861,000 | 89,423,000 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 18,757,000 | 18,098,000 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Residential Mortgage Backed Securities [Member] | ||
Securities available for sale, at fair value | 18,757,000 | 18,098,000 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 420,000 | 423,000 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities [Member] | ||
Securities available for sale, at fair value | 420,000 | 423,000 |
Fair Value, Measurements, Recurring [Member] | Negotiable Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Negotiable Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 3,248,000 | 3,162,000 |
Fair Value, Measurements, Recurring [Member] | Negotiable Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Negotiable Certificates of Deposit [Member] | ||
Securities available for sale, at fair value | 3,248,000 | 3,162,000 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale, at fair value | 961,000 | 948,000 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | ||
Securities available for sale, at fair value | 961,000 | 948,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale, at fair value | 961,000 | 948,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale, at fair value | 261,229,000 | 252,825,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale, at fair value | 262,190,000 | 253,773,000 |
US Government Agencies Debt Securities [Member] | ||
Securities available for sale, at fair value | 12,724,000 | 44,043,000 |
US States and Political Subdivisions Debt Securities [Member] | ||
Securities available for sale, at fair value | 102,206,000 | 75,407,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Residential Mortgage [Member] | ||
Securities available for sale, at fair value | 21,013,000 | 22,269,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Commercial Loan [Member] | ||
Securities available for sale, at fair value | 102,861,000 | 89,423,000 |
Residential Mortgage Backed Securities [Member] | ||
Securities available for sale, at fair value | 18,757,000 | 18,098,000 |
Corporate Debt Securities [Member] | ||
Securities available for sale, at fair value | 420,000 | 423,000 |
Negotiable Certificates of Deposit [Member] | ||
Securities available for sale, at fair value | 3,248,000 | 3,162,000 |
Equity Securities [Member] | ||
Securities available for sale, at fair value | 961,000 | 948,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Securities available for sale, at fair value | $ 262,190,000 | $ 253,773,000 |
Note 10 - Fair Value Measurem54
Note 10 - Fair Value Measurements - Assets Measured At Fair Value On a Non-recurring Basis and Quantitative Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Market Approach Valuation Technique [Member] | Impaired Loans, Collateral Dependent [Member] | ||
Recorded Investment | $ 449,000 | $ 718,000 |
Related Allowance | 31,000 | 124,000 |
Fair Value | $ 418,000 | $ 594,000 |
Selling Cost | 10.00% | 10.00% |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Market Approach Valuation Technique [Member] | Other Real Estate Owned [Member] | ||
Recorded Investment | $ 905,000 | $ 3,104,000 |
Related Allowance | 0 | 0 |
Fair Value | $ 905,000 | $ 3,104,000 |
Selling Cost | 10.00% | 10.00% |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Income Approach Valuation Technique [Member] | Impaired Loans, Other [Member] | Minimum [Member] | ||
Discount Rate | 3.00% | 3.00% |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Income Approach Valuation Technique [Member] | Impaired Loans, Other [Member] | Maximum [Member] | ||
Discount Rate | 7.50% | 7.50% |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Income Approach Valuation Technique [Member] | Impaired Loans, Other [Member] | ||
Recorded Investment | $ 3,059,000 | $ 3,757,000 |
Related Allowance | 243,000 | 257,000 |
Fair Value | 2,816,000 | 3,500,000 |
Recorded Investment | 6,136,000 | 7,961,000 |
Related Allowance | $ 274,000 | $ 381,000 |
Note 10 - Fair Value Measurem55
Note 10 - Fair Value Measurements - Estimated Fair Values of the Company's Financial Information (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and short term investments | $ 17,672,000 | $ 21,083,000 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
FHLB and FRB Stock | 6,570,000 | 7,695,000 |
Loans held for sale | 563,000 | 683,000 |
Accrued interest receivable | 2,511,000 | 2,475,000 |
Deposits | 835,834,000 | 821,546,000 |
Borrowed funds | 145,081,000 | 160,112,000 |
Accrued interest payable | 311,000 | 11,165,000 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Loans, net | 725,161,000 | 724,926,000 |
Mortgage servicing rights | 213,000 | 240,000 |
Reported Value Measurement [Member] | ||
Securities available for sale, at fair value | 262,190,000 | 253,773,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Cash and short term investments | 17,672,000 | 21,083,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
FHLB and FRB Stock | 6,570,000 | 7,695,000 |
Loans held for sale | 563,000 | 683,000 |
Accrued interest receivable | 2,511,000 | 2,475,000 |
Deposits | 834,564,000 | 798,466,000 |
Borrowed funds | 145,676,000 | 160,266,000 |
Accrued interest payable | 311,000 | 11,165,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Loans, net | 727,559,000 | 716,412,000 |
Mortgage servicing rights | 722,000 | 880,000 |
Estimate of Fair Value Measurement [Member] | ||
Securities available for sale, at fair value | 262,190,000 | 253,773,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Securities available for sale, at fair value | 0 | 0 |
Securities available for sale, at fair value | $ 262,190,000 | $ 253,773,000 |
Note 11 - Earnings per Share (D
Note 11 - Earnings per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restricted Stock [Member] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 0 | 0 | 0 |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 47,459 | 64,479 |
Note 11 - Earnings Per Share -
Note 11 - Earnings Per Share - Calculation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net income | $ 1,625 | $ 819 | $ 2,768 | $ 4,294 |
Basic (in shares) | 16,549,169 | 16,500,945 | 16,534,464 | 16,495,558 |
Plus: Common share equivalents (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted-average number of common shares outstanding (in shares) | 16,549,169 | 16,500,945 | 16,534,464 | 16,495,558 |
Basic (in dollars per share) | $ 0.10 | $ 0.05 | $ 0.17 | $ 0.26 |
Diluted (in dollars per share) | $ 0.10 | $ 0.05 | $ 0.17 | $ 0.26 |
Note 12 - Other Comprehensive58
Note 12 - Other Comprehensive Income - Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Investment Gain (Loss) Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Reclassification adjustment for net gains reclassified into net income | $ (857) | $ (74) | $ (960) | $ (2,298) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Income tax expense (benefit) | 291 | 25 | 326 | 781 |
Net of tax amount | (566) | (49) | (634) | (1,517) |
Reclassification adjustment for net gains reclassified into net income | (857) | (74) | (960) | (2,298) |
Income tax expense (benefit) | 661 | 22 | 887 | (40) |
Net of tax amount | $ 566 | $ 49 | $ 634 | $ 1,517 |
Note 12 - Other Comprehensive59
Note 12 - Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Beginning balance | $ 4,782 | $ 1,966 | $ (238) | $ 1,138 |
Other comprehensive income (loss) before reclassifications | 2,520 | (1,638) | 7,608 | 658 |
Amounts reclassified from accumulated other comprehensive income (loss) | (566) | (49) | (634) | (1,517) |
Net other comprehensive income (loss) during the period | 1,954 | (1,687) | 6,974 | (859) |
Ending balance | $ 6,736 | $ 279 | $ 6,736 | $ 279 |