Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 28, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MACATAWA BANK CORP | |
Entity Central Index Key | 1,053,584 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 33,925,113 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 22,499 | $ 29,104 |
Federal funds sold and other short -term investments | 72,104 | 152,372 |
Cash and cash equivalents | 94,603 | 181,476 |
Interest-bearing time deposits in other financial institutions | 0 | 20,000 |
Securities available for sale, at fair value | 168,041 | 166,815 |
Securities held to maturity (fair value 2016 - $52,485 and 2015 - $52,837) | 51,303 | 51,856 |
Federal Home Loan Bank (FHLB) stock | 11,558 | 11,558 |
Loans held for sale, at fair value | 2,259 | 2,776 |
Total loans | 1,216,184 | 1,197,932 |
Allowance for loan losses | (17,129) | (17,081) |
Net loans | 1,199,055 | 1,180,851 |
Premises and equipment - net | 50,944 | 51,456 |
Accrued interest receivable | 3,929 | 3,622 |
Bank-owned life insurance | 28,784 | 28,858 |
Other real estate owned - net | 16,162 | 17,572 |
Net deferred tax asset | 8,546 | 8,819 |
Other assets | 4,801 | 3,984 |
Total assets | 1,639,985 | 1,729,643 |
Deposits | ||
Noninterest-bearing | 424,356 | 477,032 |
Interest-bearing | 916,478 | 958,480 |
Total deposits | 1,340,834 | 1,435,512 |
Other borrowed funds | 94,840 | 96,169 |
Long-term debt | 41,238 | 41,238 |
Accrued expenses and other liabilities | 7,832 | 4,747 |
Total liabilities | $ 1,484,744 | $ 1,577,666 |
Commitments and contingent liabilities | ||
Shareholders' equity | ||
Common stock, no par value, 200,000,000 shares authorized; 33,925,113 shares issued and outstanding at March 31, 2016 and December 31, 2015 | $ 216,687 | $ 216,540 |
Retained deficit | (62,427) | (64,910) |
Accumulated other comprehensive income | 981 | 347 |
Total shareholders' equity | 155,241 | 151,977 |
Total liabilities and shareholders' equity | $ 1,639,985 | $ 1,729,643 |
CONSOLIDATED BALANCE SHEETS (u3
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Securities held to maturity fair value | $ 52,485 | $ 52,837 |
Shareholders' equity | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 33,925,113 | 33,925,113 |
Common stock, shares outstanding (in shares) | 33,925,113 | 33,925,113 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest income | ||
Loans, including fees | $ 11,756 | $ 10,963 |
Securities | ||
Taxable | 550 | 501 |
Tax-exempt | 433 | 344 |
FHLB Stock | 124 | 117 |
Federal funds sold and other short-term investments | 145 | 86 |
Total interest income | 13,008 | 12,011 |
Interest expense | ||
Deposits | 463 | 619 |
Other borrowings | 442 | 415 |
Subordinated and long-term debt | 365 | 325 |
Total interest expense | 1,270 | 1,359 |
Net interest income | 11,738 | 10,652 |
Provision for loan losses | (100) | (1,000) |
Net interest income after provision for loan losses | 11,838 | 11,652 |
Noninterest income | ||
Service charges and fees | 1,047 | 1,001 |
Net gains on mortgage loans | 487 | 723 |
Trust fees | 708 | 734 |
ATM and debit card fees | 1,186 | 1,110 |
Gain on sales of securities | 89 | 83 |
Bank owned life insurance ("BOLI") income | 444 | 162 |
Other | 647 | 482 |
Total noninterest income | 4,608 | 4,295 |
Noninterest expense | ||
Salaries and benefits | 6,187 | 6,182 |
Occupancy of premises | 982 | 972 |
Furniture and equipment | 865 | 783 |
Legal and professional | 159 | 239 |
Marketing and promotion | 275 | 305 |
Data processing | 659 | 577 |
FDIC assessment | 251 | 281 |
Interchange and other card expense | 286 | 276 |
Bond and D&O Insurance | 132 | 145 |
Net losses on repossessed and foreclosed properties | 36 | 451 |
Administration and disposition of problem assets | 375 | 376 |
Other | 1,344 | 1,275 |
Total noninterest expenses | 11,551 | 11,862 |
Income before income tax | 4,895 | 4,085 |
Income tax expense | 1,400 | 1,245 |
Net income | $ 3,495 | $ 2,840 |
Basic earnings per common share (in dollars per share) | $ 0.10 | $ 0.08 |
Diluted earnings per common share (in dollars per share) | 0.10 | 0.08 |
Cash dividends per common share (in dollars per share) | $ 0.03 | $ 0.02 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract] | ||
Net income | $ 3,495 | $ 2,840 |
Unrealized gains: | ||
Net change in unrealized gains on securities available for sale | 1,064 | 1,281 |
Tax effect | (372) | (449) |
Net change in unrealized gains on securities available for sale, net of tax | 692 | 832 |
Less: reclassification adjustments: | ||
Reclassification for gains included in net income | 89 | 83 |
Tax effect | (31) | (29) |
Reclassification for gains included in net income, net of tax | 58 | 54 |
Other comprehensive income, net of tax | 634 | 778 |
Comprehensive income | $ 4,129 | $ 3,618 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2014 | $ 216,460 | $ (74,002) | $ 61 | $ 142,519 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 0 | 2,840 | 0 | 2,840 |
Cash dividends | 0 | (677) | 0 | (677) |
Net change in unrealized gain on securities available for sale, net of tax | 0 | 0 | 778 | 778 |
Stock compensation expense | 121 | 0 | 0 | 121 |
Balance at Mar. 31, 2015 | 216,581 | (71,839) | 839 | 145,581 |
Balance at Dec. 31, 2015 | 216,540 | (64,910) | 347 | 151,977 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 0 | 3,495 | 0 | 3,495 |
Cash dividends | 0 | (1,012) | 0 | (1,012) |
Net change in unrealized gain on securities available for sale, net of tax | 0 | 0 | 634 | 634 |
Stock compensation expense | 147 | 0 | 0 | 147 |
Balance at Mar. 31, 2016 | $ 216,687 | $ (62,427) | $ 981 | $ 155,241 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cash dividend per share (in dollars per share) | $ 0.03 | $ 0.02 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities | ||
Net income | $ 3,495 | $ 2,840 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation and amortization | 659 | 684 |
Stock compensation expense | 147 | 121 |
Provision for loan losses | (100) | (1,000) |
Origination of loans for sale | (18,883) | (23,438) |
Proceeds from sales of loans originated for sale | 19,887 | 24,140 |
Net gains on mortgage loans | (487) | (723) |
Gain on sales of securities | (89) | (83) |
Write-down of other real estate | 129 | 518 |
Net (gain) loss on sales of other real estate | (92) | (67) |
Change in net deferred tax asset | (68) | 592 |
Change in accrued interest receivable and other assets | (1,124) | (1,826) |
Earnings in bank-owned life insurance | (444) | (162) |
Change in accrued expenses and other liabilities | 2,073 | (869) |
Net cash from operating activities | 5,103 | 727 |
Cash flows from investing activities | ||
Loan originations and payments, net | (18,206) | (16,809) |
Change in interest-bearing deposits in other financial institutions | 20,000 | 0 |
Purchases of securities available for sale | (21,802) | (10,590) |
Purchases of securities held to maturity | 0 | (10,326) |
Proceeds from: | ||
Maturities and calls of securities | 12,883 | 5,195 |
Sales of securities available for sale | 9,418 | 12,063 |
Principal paydowns on securities | 911 | 919 |
Sales of other real estate | 1,475 | 1,452 |
Death benefit from bank-owned life insurance | 518 | 0 |
Additions to premises and equipment | (154) | (250) |
Net cash from investing activities | 5,043 | (18,346) |
Cash flows from financing activities | ||
Change in deposits | (94,678) | 14,191 |
Repayments of other borrowed funds | (1,329) | (1,271) |
Proceeds from other borrowed funds | 0 | 10,000 |
Cash dividends paid | (1,012) | (677) |
Net cash from financing activities | (97,019) | 22,243 |
Net change in cash and cash equivalents | (86,873) | 4,624 |
Cash and cash equivalents at beginning of period | 181,476 | 129,455 |
Cash and cash equivalents at end of period | 94,603 | 134,079 |
Supplemental cash flow information | ||
Interest paid | 1,270 | 1,347 |
Income taxes paid | 0 | 1,575 |
Supplemental noncash disclosures: | ||
Transfers from loans to other real estate | 102 | 699 |
Security settlement | $ 1,012 | $ 1,250 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. The Company owns all of the common stock of Macatawa Statutory Trust I and Macatawa Statutory Trust II. These are grantor trusts that issued trust preferred securities and are not consolidated with the Company under accounting principles generally accepted in the United States of America. Basis of Presentation: Operating results for the three month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. Use of Estimates Allowance for Loan Losses The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current qualitative factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class and the loan risk grade assignment for commercial loans. At March 31, 2016, an 18 month annualized historical loss experience was used for commercial loans and a 12 month historical loss experience period was applied to residential mortgage loans and consumer loans. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, external factors and other considerations. A loan is impaired when, based on current information and events, it is believed to be probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and a concession has been made, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated and the loan is reported at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment and they are not separately identified for impairment disclosures. Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Foreclosed Assets Income Taxes We recognize a tax position as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. We recognize interest and penalties related to income tax matters in income tax expense. Derivatives Reclassifications: Adoption of New Accounting Standards Simplifying the Presentation of Debt Issuance Costs FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Newly Issued Not Yet Effective Standards Revenue from Contracts with Customers (Topic 606). Other Assets and Deferred Costs: Contracts with Customers FASB issued ASU 2016-02, Leases FASB issued ASU 2016-04, Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Cards (a consensus of the FASB Emerging Issues Task Force) Liabilities—Extinguishments of Liabilities FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2016 | |
SECURITIES [Abstract] | |
SECURITIES | NOTE 2 – SECURITIES The amortized cost and fair value of securities at period-end were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2016 Available for Sale: U.S. Treasury and federal agency securities $ 76,689 327 (43 ) $ 76,973 U.S. Agency MBS and CMOs 11,719 73 (30 ) 11,762 Tax-exempt state and municipal bonds 35,557 835 (51 ) 36,341 Taxable state and municipal bonds 26,093 345 (4 ) 26,434 Corporate bonds and other debt securities 14,974 56 (14 ) 15,016 Other equity securities 1,500 15 --- 1,515 $ 166,532 $ 1,651 $ (142 ) $ 168,041 Held to Maturity Tax-exempt state and municipal bonds $ 51,303 $ 1,182 $ --- $ 52,485 December 31, 2015 Available for Sale: U.S. Treasury and federal agency securities $ 74,618 48 (274 ) $ 74,392 U. S. Agency MBS and CMOs 13,828 35 (108 ) 13,755 Tax-exempt state and municipal bonds 32,943 692 (37 ) 33,598 Taxable state and municipal bonds 28,554 246 (37 ) 28,763 Corporate bonds and other debt securities 14,838 19 (44 ) 14,813 Other equity securities 1,500 --- (6 ) 1,494 $ 166,281 $ 1,040 $ (506 ) $ 166,815 Held to Maturity: Tax-exempt state and municipal bonds $ 51,856 $ 986 $ (5 ) $ 52,837 Proceeds from the sale of securities available for sale were $9.4 million and $12.1 million, respectively, in the three month periods ended March 31, 2016 and 2015 resulting in net gain on sale of $89,000 and $83,000, respectively, as reported in the Consolidated Statements of Income. This resulted in a reclassification of $89,000 ($58,000 net of tax) for the three months ended March 31, 2016 and $83,000 ($54,000 net of tax) for the three months ended March 31, 2015 from accumulated other comprehensive income to gain on sale of securities in the Consolidated Statements of Income. Contractual maturities of debt securities at March 31, 2016 were as follows (dollars in thousands): Held–to-Maturity Securities Available-for-Sale Securities Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 14,655 $ 14,673 $ 12,213 $ 12,256 Due from one to five years 9,704 9,873 98,184 98,805 Due from five to ten years 14,744 15,556 41,794 42,559 Due after ten years 12,200 12,383 12,841 12,906 $ 51,303 $ 52,485 $ 165,032 $ 166,526 Securities with unrealized losses at March 31, 2016 and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands): Less than 12 Months 12 Months or More Total March 31, 2016 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 12,335 $ (33 ) $ 3,107 $ (10 ) $ 15,442 $ (43 ) U.S. Agency MBS and CMOs 1,937 (9 ) 1,828 (21 ) 3,765 (30 ) Tax-exempt state and municipal bonds 11,652 (36 ) 860 (15 ) 12,512 (51 ) Taxable state and municipal bonds 529 (2 ) 643 (2 ) 1,172 (4 ) Corporate bonds and other debt securities 3,570 (12 ) 502 (2 ) 4,072 (14 ) Other equity securities --- --- --- --- --- --- Total temporarily impaired $ 30,023 $ (92 ) $ 6,940 $ (50 ) $ 36,963 $ (142 ) Less than 12 Months 12 Months or More Total December 31, 2015 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 35,090 $ (187 ) $ 7,036 $ (82 ) $ 42,126 $ (269 ) U.S. Agency MBS and CMOs 8,842 (108 ) --- --- 8,842 (108 ) Tax-exempt state and municipal bonds 3,487 (9 ) 2,022 (33 ) 5,509 (42 ) Taxable state and municipal bonds 8,158 (29 ) 640 (8 ) 8,798 (37 ) Corporate bonds and other debt securities 9,330 (47 ) 499 (2 ) 9,829 (49 ) Other equity securities 1,494 (6 ) --- 1,494 (6 ) Total temporarily impaired $ 66,401 $ (386 ) $ 10,197 $ (125 ) $ 76,598 $ (511 ) Other-Than-Temporary-Impairment Management evaluates securities for other-than-temporary impairment ("OTTI") at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Management determined that the unrealized losses for each period were attributable to changes in interest rates and not due to credit quality. As such, no OTTI charges were necessary during the three month periods ended March 31, 2016 and 2015. Securities with a carrying value of approximately $2.0 million were pledged as security for public deposits, letters of credit and for other purposes required or permitted by law at March 31, 2016 and December 31, 2015. |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2016 | |
LOANS [Abstract] | |
LOANS | NOTE 3 – LOANS Portfolio loans were as follows (dollars in thousands): March 31, December 31, Commercial and industrial $ 388,625 $ 377,298 Commercial real estate: Residential developed 13,141 10,448 Unsecured to residential developers 7,491 7,372 Vacant and unimproved 45,429 42,881 Commercial development 658 559 Residential improved 68,858 67,922 Commercial improved 294,392 289,651 Manufacturing and industrial 86,747 89,839 Total commercial real estate 516,716 508,672 Consumer Residential mortgage 214,104 209,972 Unsecured 577 637 Home equity 87,874 92,716 Other secured 8,288 8,637 Total consumer 310,843 311,962 Total loans 1,216,184 1,197,932 Allowance for loan losses (17,129 ) (17,081 ) $ 1,199,055 $ 1,180,851 Activity in the allowance for loan losses by portfolio segment was as follows (dollars in thousands): Three months ended March 31, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 4,826 8,457 $ 3,761 $ 37 $ 17,081 Charge-offs --- --- (76 ) --- (76 ) Recoveries 49 121 54 --- 224 Provision for loan losses 70 (129 ) (40 ) (1 ) (100 ) Ending Balance $ 4,945 $ 8,449 $ 3,699 $ 36 $ 17,129 Three months ended March 31, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962 Charge-offs --- --- (78 ) --- (78 ) Recoveries 84 608 104 --- 796 Provision for loan losses (83 ) (728 ) (165 ) (24 ) (1,000 ) Ending Balance $ 6,174 $ 8,570 $ 3,907 $ 29 $ 18,680 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): March 31, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 574 $ 495 $ 810 $ --- $ 1,879 Collectively evaluated for impairment 4,371 7,954 2,889 36 15,250 Total ending allowance balance $ 4,945 $ 8,449 $ 3,699 $ 36 $ 17,129 Loans: Individually reviewed for impairment $ 8,622 $ 15,840 $ 13,149 $ --- $ 37,611 Collectively evaluated for impairment 380,003 500,876 297,694 --- 1,178,573 Total ending loans balance $ 388,625 $ 516,716 $ 310,843 $ --- $ 1,216,184 December 31, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 673 $ 436 $ 829 $ --- $ 1,938 Collectively evaluated for impairment 4,153 8,021 2,932 37 15,143 Total ending allowance balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 Loans: Individually reviewed for impairment $ 7,718 $ 17,569 $ 13,463 $ --- $ 38,750 Collectively evaluated for impairment 369,580 491,103 298,499 --- 1,159,182 Total ending loans balance $ 377,298 $ 508,672 $ 311,962 $ --- $ 1,197,932 The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2016 (dollars in thousands): March 31, 2016 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 4,094 $ 4,094 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 206 206 --- Commercial development --- --- --- Residential improved 87 87 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 293 293 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- $ 4,387 $ 4,387 $ --- With an allowance recorded: Commercial and industrial $ 4,528 $ 4,528 $ 574 Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 237 237 6 Commercial development 192 192 6 Residential improved 5,423 5,423 260 Commercial improved 9,457 9,457 214 Manufacturing and industrial 238 238 9 15,547 15,547 495 Consumer: Residential mortgage 8,579 8,579 529 Unsecured --- --- --- Home equity 4,570 4,570 281 Other secured --- --- --- 13,149 13,149 810 $ 33,224 $ 33,224 $ 1,879 Total $ 37,611 $ 37,611 $ 1,879 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2015 (dollars in thousands): December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 2,736 $ 2,736 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 206 206 --- Commercial development --- --- --- Residential improved 5 5 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 211 211 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- $ 2,947 $ 2,947 $ --- With an allowance recorded: Commercial and industrial $ 4,982 $ 4,982 $ 673 Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 247 247 7 Commercial development 192 192 6 Residential improved 5,254 5,254 140 Commercial improved 11,425 11,425 274 Manufacturing and industrial 240 240 9 17,358 17,358 436 Consumer: Residential mortgage 8,655 8,655 533 Unsecured --- --- --- Home equity 4,808 4,808 296 Other secured --- --- --- 13,463 13,463 829 $ 35,803 $ 35,803 $ 1,938 Total $ 38,750 $ 38,750 $ 1,938 The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the three month periods ended March 31, 2016 and 2015 (dollars in thousands): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Average of impaired loans during the period: Commercial and industrial $ 8,265 $ 9,703 Commercial real estate: Residential developed --- 937 Unsecured to residential developers --- --- Vacant and unimproved 446 1,490 Commercial development 192 198 Residential improved 5,543 7,661 Commercial improved 9,537 16,759 Manufacturing and industrial 239 2,706 Consumer 13,140 14,784 Interest income recognized during impairment: Commercial and industrial 298 326 Commercial real estate 201 356 Consumer 122 137 Cash-basis interest income recognized Commercial and industrial 288 328 Commercial real estate 200 351 Consumer 123 140 Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2016 and December 31, 2015: March 31, 2016 Nonaccrual Over 90 days Accruing Commercial and industrial $ 48 $ 31 Commercial real estate: Residential developed --- --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 115 --- Commercial improved 148 --- Manufacturing and industrial --- --- 312 --- Consumer: Residential mortgage 2 --- Unsecured 25 --- Home equity 9 --- Other secured --- --- 36 --- Total $ 396 $ 31 December 31, 2015 Nonaccrual Over 90 days Accruing Commercial and industrial $ 174 $ --- Commercial real estate: Residential developed 195 --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 124 --- Commercial improved 157 --- Manufacturing and industrial --- --- 525 --- Consumer: Residential mortgage 2 --- Unsecured 28 --- Home equity 10 17 Other secured --- --- 40 17 Total $ 739 $ 17 The following table presents the aging of the recorded investment in past due loans as of March 31, 2016 and December 31, 2015 by class of loans (dollars in thousands): March 31, 2016 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 344 $ 31 $ 375 $ 388,250 $ 388,625 Commercial real estate: Residential developed --- --- --- 13,141 13,141 Unsecured to residential developers --- --- --- 7,491 7,491 Vacant and unimproved --- --- --- 45,429 45,429 Commercial development 192 49 241 417 658 Residential improved 122 6 128 68,730 68,858 Commercial improved 52 --- 52 294,340 294,392 Manufacturing and industrial --- --- --- 86,747 86,747 366 55 421 516,295 516,716 Consumer: Residential mortgage --- --- --- 214,104 214,104 Unsecured --- --- --- 577 577 Home equity --- --- --- 87,874 87,874 Other secured --- --- --- 8,288 8,288 --- --- --- 310,843 310,843 Total $ 710 $ 86 $ 796 $ 1,215,388 $ 1,216,184 December 31, 2015 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 719 $ 100 $ 819 $ 376,479 $ 377,298 Commercial real estate: Residential developed --- --- --- 10,448 10,448 Unsecured to residential developers --- --- --- 7,372 7,372 Vacant and unimproved --- --- --- 42,881 42,881 Commercial development --- 49 49 510 559 Residential improved 73 6 79 67,843 67,922 Commercial improved 375 --- 375 289,276 289,651 Manufacturing and industrial --- --- --- 89,839 89,839 448 55 503 508,169 508,672 Consumer: Residential mortgage --- --- --- 209,972 209,972 Unsecured --- --- --- 637 637 Home equity 32 17 49 92,667 92,716 Other secured --- --- --- 8,637 8,637 32 17 49 311,913 311,962 Total $ 1,199 $ 172 $ 1,371 $ 1,196,561 $ 1,197,932 The Company had allocated $1,879,000 and $1,938,000 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings (“TDRs”) as of March 31, 2016 and December 31, 2015, respectively. These loans may have involved the restructuring of terms to allow customers to mitigate the risk of foreclosure by meeting a lower loan payment requirement based upon their current cash flow. These may also include loans that renewed at existing contractual rates, but below market rates for comparable credit. The Company has been active at utilizing these programs and working with its customers to reduce the risk of foreclosure. For commercial loans, these modifications typically include an interest only period and, in some cases, a lowering of the interest rate on the loan. In some cases, the modification will include separating the note into two notes with the first note structured to be supported by current cash flows and collateral, and the second note made for the remaining unsecured debt. The second note is charged off immediately and collected only after the first note is paid in full. This modification type is commonly referred to as an A-B note structure. For consumer mortgage loans, the restructuring typically includes a lowering of the interest rate to provide payment and cash flow relief. For each restructuring, a comprehensive credit underwriting analysis of the borrower’s financial condition and prospects of repayment under the revised terms is performed to assess whether the structure can be successful and that cash flows will be sufficient to support the restructured debt. An analysis is also performed to determine whether the restructured loan should be on accrual status. Generally, if the loan is on accrual at the time of restructure, it will remain on accrual after the restructuring. In some cases, a nonaccrual loan may be placed on accrual at restructuring if the loan’s actual payment history demonstrates it would have cash flowed under the restructured terms. After six consecutive payments under the restructured terms, a nonaccrual restructured loan is reviewed for possible upgrade to accruing status. In situations where there is a subsequent modification or renewal and the loan is brought to market terms, including a contractual interest rate not less than a market interest rate for new debt with similar credit risk characteristics, the TDR and impaired loan designations may be removed. In addition, the TDR designation may also be removed from loans modified under an A-B note structure. If the remaining “A” note is at a market rate at the time of restructuring (taking into account the borrower’s credit risk and prevailing market conditions), the loan can be removed from TDR designation in a subsequent calendar year after six months of performance in accordance with the new terms. The market rate relative to the borrower’s credit risk is determined through analysis of market pricing information gathered from peers and use of a loan pricing model. The general objective of the model is to achieve a consistent return on equity from one credit to the next, taking into consideration differences in credit risk. In the model, credits with higher risk receive a higher potential loss allocation, and therefore require a higher interest rate to achieve the target return on equity. As with other impaired loans, an allowance for loan loss is estimated for each TDR based on the most likely source of repayment for each loan. For impaired commercial real estate loans that are collateral dependent, the allowance is computed based on the fair value of the underlying collateral, less estimated costs to sell. For impaired commercial loans where repayment is expected from cash flows from business operations, the allowance is computed based on a discounted cash flow computation. Certain groups of TDRs, such as residential mortgages, have common characteristics and for them the allowance is computed based on a discounted cash flow computation on the change in weighted rate for the pool. The allowance allocations for commercial TDRs where we have reduced the contractual interest rate are computed by measuring cash flows using the new payment terms discounted at the original contractual rate. The following table presents information regarding troubled debt restructurings as of March 31, 2016 and December 31, 2015 (dollars in thousands): March 31, 2016 December 31, 2015 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 31 $ 8,522 33 $ 7,611 Commercial real estate 55 16,132 56 17,871 Consumer 123 13,385 124 13,570 209 $ 38,039 213 $ 39,052 The following table presents information related to accruing troubled debt restructurings as of March 31, 2016 and December 31, 2015. The table presents the amount of accruing troubled debt restructurings that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of each period reported (dollars in thousands): March 31, 2016 December 31, 2015 Accruing TDR - nonaccrual at restructuring $ --- $ --- Accruing TDR - accruing at restructuring 31,400 33,691 Accruing TDR - upgraded to accruing after six consecutive payments 6,319 4,784 $ 37,719 $ 38,475 The following tables present information regarding troubled debt restructurings executed during the three month periods ended March 31, 2016 and 2015 (dollars in thousands): Three Months Ended March 31, 2016 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial --- $ --- $ --- Commercial real estate --- --- --- Consumer 4 238 --- 4 $ 238 $ --- Three Months Ended March 31, 2015 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial 1 $ 408 $ --- Commercial real estate 1 42 --- Consumer 29 753 --- 31 $ 1,203 $ --- According to the accounting standards, not all loan modifications are TDRs. TDRs are modifications or renewals where the Company has granted a concession to a borrower in financial distress. The Company reviews all modifications and renewals for determination of TDR status. In some situations a borrower may be experiencing financial distress, but the Company does not provide a concession. These modifications are not considered TDRs. In other cases, the Company might provide a concession, such as a reduction in interest rate, but the borrower is not experiencing financial distress. This could be the case if the Company is matching a competitor’s interest rate. These modifications would also not be considered TDRs. Finally, any renewals at existing terms for borrowers not experiencing financial distress would not be considered TDRs. As with other loans not considered TDR or impaired, allowance allocations are based on the historical based allocation for the applicable loan grade and loan class. The table below presents, by class, information regarding troubled debt restructured loans which had payment defaults during the three month periods ended March 31, 2016 and 2015 (dollars in thousands). Included are loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring. Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial --- $ --- --- $ --- Commercial real estate --- --- --- --- Consumer --- --- --- --- Credit Quality Indicators: 1. Excellent 2. Above Average 3. Good Quality 4. Acceptable Risk 5. Marginally Acceptable 6. Substandard 7. Doubtful 8. Loss As of March 31, 2016 and December 31, 2015, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands): March 31, 2016 1 2 3 4 5 6 7 8 Total Commercial and industrial $ --- $ 14,597 $ 111,894 $ 244,231 $ 10,713 $ 7,142 $ 48 $ --- $ 388,625 Commercial real estate: Residential developed --- --- 2,555 7,560 2,834 192 --- --- 13,141 Unsecured to residential developers --- --- --- 7,491 --- --- --- --- 7,491 Vacant and unimproved --- --- 21,700 19,362 4,367 --- --- --- 45,429 Commercial development --- --- --- 417 --- 192 49 --- 658 Residential improved --- --- 6,217 56,078 4,681 1,767 115 --- 68,858 Commercial improved --- 1,796 61,179 216,218 12,938 2,113 148 --- 294,392 Manufacturing & industrial --- 1,427 33,500 50,077 1,743 --- --- --- 86,747 $ --- $ 17,820 $ 237,045 $ 601,434 $ 37,276 $ 11,406 $ 360 $ --- $ 905,341 December 31, 2015 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 196 $ 8,774 $ 114,451 $ 242,253 $ 5,235 $ 6,215 $ 174 $ --- $ 377,298 Commercial real estate: Residential developed --- --- 2,226 5,191 2,836 --- 195 --- 10,448 Unsecured to residential developers --- --- --- 7,372 --- --- --- --- 7,372 Vacant and unimproved --- --- 17,768 20,588 4,525 --- --- --- 42,881 Commercial development --- --- --- 318 --- 192 49 --- 559 Residential improved --- --- 7,191 54,376 4,722 1,509 124 --- 67,922 Commercial improved --- 3,094 60,475 208,127 15,645 2,153 157 --- 289,651 Manufacturing & industrial --- 1,478 34,857 50,023 3,481 --- --- --- 89,839 $ 196 $ 13,346 $ 236,968 $ 588,248 $ 36,444 $ 10,069 $ 699 $ --- $ 885,970 Commercial loans rated a 6 or worse per the Company’s internal risk rating system are considered substandard, doubtful or loss. Commercial loans classified as substandard or worse were as follows at period-end (dollars in thousands): March 31, 2016 December 31, 2015 Not classified as impaired $ 1,828 $ 1,986 Classified as impaired 9,938 8,782 Total commercial loans classified substandard or worse $ 11,766 $ 10,768 The Company considers the performance of the loan portfolio and its impact on the allowance for loan losses. For consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in consumer loans based on payment activity (dollars in thousands): March 31, 2016 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 214,104 $ 577 $ 87,874 $ 8,288 Nonperforming --- --- --- --- Total $ 214,104 $ 577 $ 87,874 $ 8,288 December 31, 2015 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 209,972 $ 637 $ 92,699 $ 8,637 Nonperforming --- --- 17 --- Total $ 209,972 $ 637 $ 92,716 $ 8,637 |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 3 Months Ended |
Mar. 31, 2016 | |
OTHER REAL ESTATE OWNED [Abstract] | |
OTHER REAL ESTATE OWNED | NOTE 4 – OTHER REAL ESTATE OWNED Other real estate owned was as follows (dollars in thousands): Three Months Ended March 31, 2016 Year Ended December 31, 2015 Three Months Ended March 31, 2015 Beginning balance $ 28,377 $ 43,071 $ 43,071 Additions, transfers from loans 102 2,520 699 Proceeds from sales of other real estate owned (1,475 ) (11,540 ) (1,452 ) Valuation allowance reversal upon sale (251 ) (4,748 ) (447 ) Gain (loss) on sales of other real estate owned 92 (926 ) 67 26,845 28,377 41,938 Less: valuation allowance (10,683 ) (10,805 ) (14,900 ) Ending balance $ 16,162 $ 17,572 $ 27,038 Activity in the valuation allowance was as follows (dollars in thousands): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Beginning balance $ 10,805 $ 14,829 Additions charged to expense 129 518 Reversals upon sale (251 ) (447 ) Ending balance $ 10,683 $ 14,900 |
FAIR VALUE
FAIR VALUE | 3 Months Ended |
Mar. 31, 2016 | |
FAIR VALUE [Abstract] | |
FAIR VALUE | NOTE 5 – FAIR VALUE ASC Topic 820, Fair Value Measurements and Disclosures Level 1 : Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 : Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 : Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability. Investment Securities: Loans Held for Sale: Impaired Loans Other Real Estate Owned Interest Rate Swaps: Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2016 U.S. Treasury and federal agency securities $ 76,973 $ --- $ 76,973 $ --- U.S. Agency MBS and CMOs 11,762 --- 11,762 --- Tax-exempt state and municipal bonds 36,341 --- 36,341 --- Taxable state and municipal bonds 26,434 --- 26,434 --- Corporate bonds and other debt securities 15,016 --- 15,016 --- Other equity securities 1,515 --- 1,515 --- Loans held for sale 2,259 --- 2,259 --- Interest rate swaps 1,220 --- --- 1,220 Interest rate swaps (1,220 ) --- --- (1,220 ) December 31, 2015 U.S. Treasury and federal agency securities $ 74,392 $ --- $ 74,392 $ --- U.S. Agency MBS and CMOs 13,755 --- 13,755 --- Tax-exempt state and municipal bonds 33,598 --- 33,598 --- Taxable state and municipal bonds 28,763 --- 28,763 --- Corporate bonds and other debt securities 14,813 --- 14,813 --- Other equity securities 1,494 --- 1,494 --- Loans held for sale 2,776 --- 2,776 --- Interest rate swaps 790 --- --- 790 Interest rate swaps (790 ) --- --- (790 ) Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2016 Impaired loans $ 6,306 $ --- $ --- $ 6,306 Other real estate owned 12,590 --- --- 12,590 December 31, 2015 Impaired loans $ 6,573 $ --- $ --- $ 6,573 Other real estate owned 13,602 --- --- 13,602 Quantitative information about Level 3 fair value measurements measured on a non-recurring basis were as follows at period end (dollars in thousands): Asset (Liability) Fair Value Valuation Technique Unobservable Inputs Range (%) March 31, 2016 Impaired Loans $ 6,306 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 19.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 12,590 Sales comparison approach Adjustment for differences between comparable sales 2.0 to 22.5 Income approach Capitalization rate 9.5 to 11.0 Asset (Liability) Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2015 Impaired Loans $ 6,573 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 19.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 13,602 Sales comparison approach Adjustment for differences between comparable sales 4.5 to 32.5 Income approach Capitalization rate 9.5 to 11.0 The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at March 31, 2016 and December 31, 2015 (dollars in thousands): Level in March 31, 2016 December 31, 2015 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 22,499 22,499 $ 29,104 29,104 Cash equivalents Level 2 72,104 72,104 152,372 152,372 Interest-bearing time deposits in other financial institutions Level 2 --- --- 20,000 20,008 Securities held to maturity Level 3 51,303 52,485 51,856 52,837 FHLB stock 11,558 NA 11,558 NA Loans, net Level 2 1,192,749 1,190,050 1,187,423 1,177,527 Bank owned life insurance Level 3 28,784 28,784 28,858 28,858 Accrued interest receivable Level 2 3,929 3,929 3,622 3,622 Financial liabilities Deposits Level 2 (1,340,834 ) (1,340,799 ) (1,435,512 ) (1,435,473 ) Other borrowed funds Level 2 (94,840 ) (95,917 ) (96,169 ) (96,465 ) Long-term debt Level 2 (41,238 ) (35,876 ) (41,238 ) (35,757 ) Accrued interest payable Level 2 (273 ) (273 ) (273 ) (273 ) Off-balance sheet credit-related items Loan commitments --- --- --- --- The methods and assumptions used to estimate fair value are described as follows. Carrying amount is the estimated fair value for cash and cash equivalents, bank owned life insurance, accrued interest receivable and payable, demand deposits, short-term borrowings and variable rate loans or deposits that reprice frequently and fully. Security fair values are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities as discussed above. For fixed rate loans, interest-bearing time deposits in other financial institutions, or deposits and for variable rate loans or deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk (including consideration of widening credit spreads). Fair value of debt is based on current rates for similar financing. It was not practicable to determine the fair value of FHLB stock due to restrictions placed on its transferability. The fair value of off-balance sheet credit-related items is not significant. |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2016 | |
DEPOSITS [Abstract] | |
DEPOSITS | NOTE 6 – DEPOSITS Deposits are summarized as follows (in thousands): March 31, 2016 December 31, 2015 Noninterest-bearing demand $ 424,356 $ 477,032 Interest bearing demand 320,250 358,306 Savings and money market accounts 511,325 512,980 Certificates of deposit 84,903 87,194 $ 1,340,834 $ 1,435,512 Approximately $18.3 million and $17.1 million in certificates of deposit were in denominations of $250,000 or more at March 31, 2016 and December 31, 2015, respectively. |
OTHER BORROWED FUNDS
OTHER BORROWED FUNDS | 3 Months Ended |
Mar. 31, 2016 | |
OTHER BORROWED FUNDS [Abstract] | |
OTHER BORROWED FUNDS | NOTE 7 - OTHER BORROWED FUNDS Other borrowed funds include advances from the Federal Home Loan Bank and borrowings from the Federal Reserve Bank. Federal Home Loan Bank Advances At period-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate March 31, 2016 Single maturity fixed rate advances $ 90,000 August 2016 to March 2020 1.69 % Amortizable mortgage advances 4,840 March 2018 to July 2018 3.76 % $ 94,840 Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2015 Single maturity fixed rate advances $ 90,000 August 2016 to March 2020 1.69 % Amortizable mortgage advances 6,169 March 2018 to July 2018 3.78 % $ 96,169 Each advance is subject to a prepayment fee if paid prior to its maturity date. Fixed rate advances are payable at maturity. Amortizable mortgage advances are fixed rate advances with scheduled repayments based upon amortization to maturity. These advances were collateralized by residential and commercial real estate loans totaling $435,348,000 and $440,660,000 under a blanket lien arrangement at March 31, 2016 and December 31, 2015, respectively. Scheduled repayments of FHLB advances as of March 31, 2016 were as follows (in thousands): 2016 $ 20,667 2017 2,055 2018 52,118 2019 10,000 2020 10,000 Thereafter --- $ 94,840 Federal Reserve Bank borrowings The Company has a financing arrangement with the Federal Reserve Bank. There were no borrowings outstanding at March 31, 2016 and December 31, 2015, and the Company had approximately $18.2 million and $18.5 million in unused borrowing capacity based on commercial and mortgage loans pledged to the Federal Reserve Bank totaling $21.1 million and $21.6 million at March 31, 2016 and December 31, 2015, respectively. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2016 | |
EARNINGS PER COMMON SHARE [Abstract] | |
EARNINGS PER COMMON SHARE | NOTE 8 - EARNINGS PER COMMON SHARE A reconciliation of the numerators and denominators of basic and diluted earnings per common share for the three month periods ended March 31, 2016 and 2015 are as follows (dollars in thousands, except per share data): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Net income available to common shares $ 3,495 $ 2,840 Weighted average shares outstanding, including participating stock awards - 33,925,113 33,866,789 Dilutive potential common shares: Stock options --- --- Stock warrants --- --- Weighted average shares outstanding - 33,925,113 33,866,789 Basic earnings per common share $ 0.10 $ 0.08 Diluted earnings per common share $ 0.10 $ 0.08 Stock options for 101,473 and 260,261 shares of common stock for the three month periods ended March 31, 2016 and 2015, respectively, were not considered in computing diluted earnings per share because they were antidilutive. |
FEDERAL INCOME TAXES
FEDERAL INCOME TAXES | 3 Months Ended |
Mar. 31, 2016 | |
FEDERAL INCOME TAXES [Abstract] | |
FEDERAL INCOME TAXES | NOTE 9 - FEDERAL INCOME TAXES Income tax expense was as follows (dollars in thousands): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Current $ 1,468 $ 653 Deferred (68 ) 592 $ 1,400 $ 1,245 The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Statutory rate 35 % 35 % Statutory rate applied to income before taxes $ 1,713 $ 1,430 Add (deduct) Tax-exempt interest income (148 ) (117 ) Bank-owned life insurance (155 ) (57 ) Other, net (10 ) (11 ) $ 1,400 $ 1,245 The realization of deferred tax assets (net of a recorded valuation allowance) is largely dependent upon future taxable income, future reversals of existing taxable temporary differences and the ability to carryback losses to available tax years. In assessing the need for a valuation allowance, we consider positive and negative evidence, including taxable income in carry-back years, scheduled reversals of deferred tax liabilities, expected future taxable income and tax planning strategies. No valuation allowance was necessary at March 31, 2016 or December 31, 2015. The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): March 31, 2016 December31, 2015 Deferred tax assets Allowance for loan losses $ 5,995 $ 5,978 Nonaccrual loan interest 830 850 Valuation allowance on other real estate owned 3,739 3,782 Unrealized loss on securities available for sale --- --- Other 704 647 Gross deferred tax assets 11,268 11,257 Valuation allowance --- --- Total net deferred tax assets 11,268 11,257 Deferred tax liabilities Depreciation (1,682 ) (1,739 ) Prepaid expenses (191 ) (191 ) Unrealized gain on securities available for sale (528 ) (187 ) Other (321 ) (321 ) Gross deferred tax liabilities (2,722 ) (2,438 ) Net deferred tax asset $ 8,546 $ 8,819 There were no unrecognized tax benefits at March 31, 2016 or December 31, 2015 and the Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. The Company is no longer subject to examination by the Internal Revenue Service for years before 2012. |
COMMITMENTS AND OFF BALANCE-SHE
COMMITMENTS AND OFF BALANCE-SHEET RISK | 3 Months Ended |
Mar. 31, 2016 | |
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract] | |
COMMITMENTS AND OFF BALANCE-SHEET RISK | NOTE 10 – COMMITMENTS AND OFF BALANCE-SHEET RISK Some financial instruments are used to meet customer financing needs and to reduce exposure to interest rate changes. These financial instruments include commitments to extend credit and standby letters of credit. These involve, to varying degrees, credit and interest rate risk in excess of the amount reported in the financial statements. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the commitment, and generally have fixed expiration dates. Standby letters of credit are conditional commitments to guarantee a customer’s performance to a third party. Exposure to credit loss if the other party does not perform is represented by the contractual amount for commitments to extend credit and standby letters of credit. Collateral or other security is normally not obtained for these financial instruments prior to their use and many of the commitments are expected to expire without being used. A summary of the contractual amounts of financial instruments with off‑balance‑sheet risk was as follows at period-end (dollars in thousands): March 31, 2016 December 31, 2015 Commitments to make loans $ 90,346 $ 97,991 Letters of credit 14,379 12,976 Unused lines of credit 416,720 426,080 The notional amount of commitments to fund mortgage loans to be sold into the secondary market was approximately $17.2 million and $19.8 million at March 31, 2016 and December 31, 2015, respectively. At March 31, 2016, approximately 41% of the Bank’s commitments to make loans were at fixed rates, offered at current market rates. The remainder of the commitments to make loans were at variable rates tied to prime or one month LIBOR and generally expire within 30 days. The majority of the unused lines of credit were at variable rates tied to prime. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2016 | |
CONTINGENCIES [Abstract] | |
CONTINGENCIES | NOTE 11 – CONTINGENCIES The Company and its subsidiaries periodically become defendants in certain claims and legal actions arising in the ordinary course of business. As of March 31, 2016, there were no material pending legal proceedings to which the Company or any of its subsidiaries are a party or which any of its properties are the subject. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2016 | |
SHAREHOLDERS' EQUITY [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 12 – SHAREHOLDERS' EQUITY Regulatory Capital The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors, and the regulators can lower classifications in certain cases. Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the financial statements. The prompt corrective action regulations provide five categories, including well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If a bank is only adequately capitalized, regulatory approval is required to, among other things, accept, renew or roll-over brokered deposits. If a bank is undercapitalized, capital distributions and growth and expansion are limited, and plans for capital restoration are required. In July 2013, the Board of Governors of the Federal Reserve Board and the FDIC approved the final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (commonly known as Basel III). Under the final rules, which began for the Company and the Bank on January 1, 2015 and are subject to a phase-in period through January 1, 2019, minimum requirements will increase for both the quantity and quality of capital held by the Company and the Bank. The rules include a new common equity Tier 1 capital to risk-weighted assets ratio (CET1 ratio) of 4.5% and a capital conservation buffer of 2.5% of risk-weighted assets, which when fully phased-in, effectively results in a minimum CET1 ratio of 7.0%. The capital conservation buffer requirement is 0.625% for 2016, increasing to 1.25% for 2017, 1.875% for 2018 and 2.50% for 2019 and thereafter. Basel III raises the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% (which, with the capital conservation buffer, effectively results in a minimum Tier 1 capital ratio of 8.5% when fully phased-in), effectively results in a minimum total capital to risk-weighted assets ratio of 10.5% (with the capital conservation buffer fully phased-in), and requires a minimum leverage ratio of 4.0%. Basel III also makes changes to risk weights for certain assets and off-balance-sheet exposures. Management expects that the capital ratios for the Company and the Bank under Basel III will continue to exceed the well capitalized minimum capital requirements. At March 31, 2016 and December 31, 2015, actual capital levels and minimum required levels were (dollars in thousands): Actual Minimum Required For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio March 31, 2016 CET1 capital (to risk weighted assets) Consolidated $ 154,260 11.0 % $ 63,378 4.5 % N/A N/A Bank 188,872 13.4 63,370 4.5 $ 91,535 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 194,260 13.8 84,504 6.0 N/A N/A Bank 188,872 13.4 84,494 6.0 112,658 8.0 Total capital (to risk weighted assets) Consolidated 211,396 15.0 112,672 8.0 N/A N/A Bank 206,008 14.6 112,658 8.0 140,823 10.0 Tier 1 capital (to average assets) Consolidated 194,260 11.7 66,489 4.0 N/A N/A Bank 188,872 11.4 66,412 4.0 83,015 5.0 December 31, 2015 CET1 capital (to risk weighted assets) Consolidated $ 151,630 10.8 % $ 63,479 4.5 % N/A N/A Bank 186,930 13.2 63,463 4.5 $ 91,668 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 191,630 13.6 84,638 6.0 N/A N/A Bank 186,930 13.2 84,617 6.0 112,822 8.0 Total capital (to risk weighted assets) Consolidated 208,711 14.8 112,851 8.0 N/A N/A Bank 203,471 14.4 112,822 8.0 141,028 10.0 Tier 1 capital (to average assets) Consolidated 191,630 11.5 66,400 4.0 N/A N/A Bank 186,930 11.2 66,332 4.0 82,915 5.0 Approximately $40.0 million of trust preferred securities outstanding at March 31, 2016 and December 31, 2015, respectively, qualified as Tier 1 capital. Refer to our 2015 Form 10-K for more information on the trust preferred securities. The Bank was categorized as "well capitalized" at March 31, 2016 and December 31, 2015. |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Principles of Consolidation | Principles of Consolidation Macatawa Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. The Bank operates 26 full service branch offices providing a full range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan. The Company owns all of the common stock of Macatawa Statutory Trust I and Macatawa Statutory Trust II. These are grantor trusts that issued trust preferred securities and are not consolidated with the Company under accounting principles generally accepted in the United States of America. |
Basis of Presentation | Basis of Presentation: Operating results for the three month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. |
Use of Estimates | Use of Estimates |
Allowance for Loan Losses | Allowance for Loan Losses The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current qualitative factors. The Company maintains a loss migration analysis that tracks loan losses and recoveries based on loan class and the loan risk grade assignment for commercial loans. At March 31, 2016, an 18 month annualized historical loss experience was used for commercial loans and a 12 month historical loss experience period was applied to residential mortgage loans and consumer loans. These historical loss percentages are adjusted (both upwards and downwards) for certain qualitative factors, including economic trends, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, external factors and other considerations. A loan is impaired when, based on current information and events, it is believed to be probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified and a concession has been made, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Commercial and commercial real estate loans with relationship balances exceeding $500,000 and an internal risk grading of 6 or worse are evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated and the loan is reported at the present value of estimated future cash flows using the loan’s existing interest rate or at the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment and they are not separately identified for impairment disclosures. Troubled debt restructurings are also considered impaired with impairment generally measured at the present value of estimated future cash flows using the loan’s effective rate at inception or using the fair value of collateral, less estimated costs to sell, if repayment is expected solely from the collateral. |
Foreclosed Assets | Foreclosed Assets |
Income Taxes | Income Taxes We recognize a tax position as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. We recognize interest and penalties related to income tax matters in income tax expense. |
Derivatives | Derivatives |
Reclassifications | Reclassifications: |
New Accounting Standards | Adoption of New Accounting Standards Simplifying the Presentation of Debt Issuance Costs FASB issued ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement Newly Issued Not Yet Effective Standards Revenue from Contracts with Customers (Topic 606). Other Assets and Deferred Costs: Contracts with Customers FASB issued ASU 2016-02, Leases FASB issued ASU 2016-04, Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Cards (a consensus of the FASB Emerging Issues Task Force) Liabilities—Extinguishments of Liabilities FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
SECURITIES [Abstract] | |
Amortized Cost and Fair Value of Securities | The amortized cost and fair value of securities at period-end were as follows (dollars in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2016 Available for Sale: U.S. Treasury and federal agency securities $ 76,689 327 (43 ) $ 76,973 U.S. Agency MBS and CMOs 11,719 73 (30 ) 11,762 Tax-exempt state and municipal bonds 35,557 835 (51 ) 36,341 Taxable state and municipal bonds 26,093 345 (4 ) 26,434 Corporate bonds and other debt securities 14,974 56 (14 ) 15,016 Other equity securities 1,500 15 --- 1,515 $ 166,532 $ 1,651 $ (142 ) $ 168,041 Held to Maturity Tax-exempt state and municipal bonds $ 51,303 $ 1,182 $ --- $ 52,485 December 31, 2015 Available for Sale: U.S. Treasury and federal agency securities $ 74,618 48 (274 ) $ 74,392 U. S. Agency MBS and CMOs 13,828 35 (108 ) 13,755 Tax-exempt state and municipal bonds 32,943 692 (37 ) 33,598 Taxable state and municipal bonds 28,554 246 (37 ) 28,763 Corporate bonds and other debt securities 14,838 19 (44 ) 14,813 Other equity securities 1,500 --- (6 ) 1,494 $ 166,281 $ 1,040 $ (506 ) $ 166,815 Held to Maturity: Tax-exempt state and municipal bonds $ 51,856 $ 986 $ (5 ) $ 52,837 |
Contractual Maturities of Debt Securities | Contractual maturities of debt securities at March 31, 2016 were as follows (dollars in thousands): Held–to-Maturity Securities Available-for-Sale Securities Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 14,655 $ 14,673 $ 12,213 $ 12,256 Due from one to five years 9,704 9,873 98,184 98,805 Due from five to ten years 14,744 15,556 41,794 42,559 Due after ten years 12,200 12,383 12,841 12,906 $ 51,303 $ 52,485 $ 165,032 $ 166,526 |
Securities in Continuous Unrealized Loss Position | Securities with unrealized losses at March 31, 2016 and December 31, 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows (dollars in thousands): Less than 12 Months 12 Months or More Total March 31, 2016 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 12,335 $ (33 ) $ 3,107 $ (10 ) $ 15,442 $ (43 ) U.S. Agency MBS and CMOs 1,937 (9 ) 1,828 (21 ) 3,765 (30 ) Tax-exempt state and municipal bonds 11,652 (36 ) 860 (15 ) 12,512 (51 ) Taxable state and municipal bonds 529 (2 ) 643 (2 ) 1,172 (4 ) Corporate bonds and other debt securities 3,570 (12 ) 502 (2 ) 4,072 (14 ) Other equity securities --- --- --- --- --- --- Total temporarily impaired $ 30,023 $ (92 ) $ 6,940 $ (50 ) $ 36,963 $ (142 ) Less than 12 Months 12 Months or More Total December 31, 2015 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury and federal agency securities $ 35,090 $ (187 ) $ 7,036 $ (82 ) $ 42,126 $ (269 ) U.S. Agency MBS and CMOs 8,842 (108 ) --- --- 8,842 (108 ) Tax-exempt state and municipal bonds 3,487 (9 ) 2,022 (33 ) 5,509 (42 ) Taxable state and municipal bonds 8,158 (29 ) 640 (8 ) 8,798 (37 ) Corporate bonds and other debt securities 9,330 (47 ) 499 (2 ) 9,829 (49 ) Other equity securities 1,494 (6 ) --- 1,494 (6 ) Total temporarily impaired $ 66,401 $ (386 ) $ 10,197 $ (125 ) $ 76,598 $ (511 ) |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
LOANS [Abstract] | |
Portfolio Loans | Portfolio loans were as follows (dollars in thousands): March 31, December 31, Commercial and industrial $ 388,625 $ 377,298 Commercial real estate: Residential developed 13,141 10,448 Unsecured to residential developers 7,491 7,372 Vacant and unimproved 45,429 42,881 Commercial development 658 559 Residential improved 68,858 67,922 Commercial improved 294,392 289,651 Manufacturing and industrial 86,747 89,839 Total commercial real estate 516,716 508,672 Consumer Residential mortgage 214,104 209,972 Unsecured 577 637 Home equity 87,874 92,716 Other secured 8,288 8,637 Total consumer 310,843 311,962 Total loans 1,216,184 1,197,932 Allowance for loan losses (17,129 ) (17,081 ) $ 1,199,055 $ 1,180,851 |
Activity in Allowance for Loan Losses by Portfolio Segment | Activity in the allowance for loan losses by portfolio segment was as follows (dollars in thousands): Three months ended March 31, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 4,826 8,457 $ 3,761 $ 37 $ 17,081 Charge-offs --- --- (76 ) --- (76 ) Recoveries 49 121 54 --- 224 Provision for loan losses 70 (129 ) (40 ) (1 ) (100 ) Ending Balance $ 4,945 $ 8,449 $ 3,699 $ 36 $ 17,129 Three months ended March 31, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Beginning balance $ 6,173 $ 8,690 $ 4,046 $ 53 $ 18,962 Charge-offs --- --- (78 ) --- (78 ) Recoveries 84 608 104 --- 796 Provision for loan losses (83 ) (728 ) (165 ) (24 ) (1,000 ) Ending Balance $ 6,174 $ 8,570 $ 3,907 $ 29 $ 18,680 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (dollars in thousands): March 31, 2016 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 574 $ 495 $ 810 $ --- $ 1,879 Collectively evaluated for impairment 4,371 7,954 2,889 36 15,250 Total ending allowance balance $ 4,945 $ 8,449 $ 3,699 $ 36 $ 17,129 Loans: Individually reviewed for impairment $ 8,622 $ 15,840 $ 13,149 $ --- $ 37,611 Collectively evaluated for impairment 380,003 500,876 297,694 --- 1,178,573 Total ending loans balance $ 388,625 $ 516,716 $ 310,843 $ --- $ 1,216,184 December 31, 2015 Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance attributable to loans: Individually reviewed for impairment $ 673 $ 436 $ 829 $ --- $ 1,938 Collectively evaluated for impairment 4,153 8,021 2,932 37 15,143 Total ending allowance balance $ 4,826 $ 8,457 $ 3,761 $ 37 $ 17,081 Loans: Individually reviewed for impairment $ 7,718 $ 17,569 $ 13,463 $ --- $ 38,750 Collectively evaluated for impairment 369,580 491,103 298,499 --- 1,159,182 Total ending loans balance $ 377,298 $ 508,672 $ 311,962 $ --- $ 1,197,932 |
Loans Individually Evaluated for Impairment by Class of Loans | The following table presents loans individually evaluated for impairment by class of loans as of March 31, 2016 (dollars in thousands): March 31, 2016 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 4,094 $ 4,094 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 206 206 --- Commercial development --- --- --- Residential improved 87 87 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 293 293 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- $ 4,387 $ 4,387 $ --- With an allowance recorded: Commercial and industrial $ 4,528 $ 4,528 $ 574 Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 237 237 6 Commercial development 192 192 6 Residential improved 5,423 5,423 260 Commercial improved 9,457 9,457 214 Manufacturing and industrial 238 238 9 15,547 15,547 495 Consumer: Residential mortgage 8,579 8,579 529 Unsecured --- --- --- Home equity 4,570 4,570 281 Other secured --- --- --- 13,149 13,149 810 $ 33,224 $ 33,224 $ 1,879 Total $ 37,611 $ 37,611 $ 1,879 The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2015 (dollars in thousands): December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance Allocated With no related allowance recorded: Commercial and industrial $ 2,736 $ 2,736 $ --- Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 206 206 --- Commercial development --- --- --- Residential improved 5 5 --- Commercial improved --- --- --- Manufacturing and industrial --- --- --- 211 211 --- Consumer: Residential mortgage --- --- --- Unsecured --- --- --- Home equity --- --- --- Other secured --- --- --- --- --- --- $ 2,947 $ 2,947 $ --- With an allowance recorded: Commercial and industrial $ 4,982 $ 4,982 $ 673 Commercial real estate: Residential developed --- --- --- Unsecured to residential developers --- --- --- Vacant and unimproved 247 247 7 Commercial development 192 192 6 Residential improved 5,254 5,254 140 Commercial improved 11,425 11,425 274 Manufacturing and industrial 240 240 9 17,358 17,358 436 Consumer: Residential mortgage 8,655 8,655 533 Unsecured --- --- --- Home equity 4,808 4,808 296 Other secured --- --- --- 13,463 13,463 829 $ 35,803 $ 35,803 $ 1,938 Total $ 38,750 $ 38,750 $ 1,938 |
Average Balances of Impaired Loans and Interest Recognized on Impaired Loans | The following table presents information regarding average balances of impaired loans and interest recognized on impaired loans for the three month periods ended March 31, 2016 and 2015 (dollars in thousands): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Average of impaired loans during the period: Commercial and industrial $ 8,265 $ 9,703 Commercial real estate: Residential developed --- 937 Unsecured to residential developers --- --- Vacant and unimproved 446 1,490 Commercial development 192 198 Residential improved 5,543 7,661 Commercial improved 9,537 16,759 Manufacturing and industrial 239 2,706 Consumer 13,140 14,784 Interest income recognized during impairment: Commercial and industrial 298 326 Commercial real estate 201 356 Consumer 122 137 Cash-basis interest income recognized Commercial and industrial 288 328 Commercial real estate 200 351 Consumer 123 140 |
Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days Still on Accrual by Class of Loans | The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2016 and December 31, 2015: March 31, 2016 Nonaccrual Over 90 days Accruing Commercial and industrial $ 48 $ 31 Commercial real estate: Residential developed --- --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 115 --- Commercial improved 148 --- Manufacturing and industrial --- --- 312 --- Consumer: Residential mortgage 2 --- Unsecured 25 --- Home equity 9 --- Other secured --- --- 36 --- Total $ 396 $ 31 December 31, 2015 Nonaccrual Over 90 days Accruing Commercial and industrial $ 174 $ --- Commercial real estate: Residential developed 195 --- Unsecured to residential developers --- --- Vacant and unimproved --- --- Commercial development 49 --- Residential improved 124 --- Commercial improved 157 --- Manufacturing and industrial --- --- 525 --- Consumer: Residential mortgage 2 --- Unsecured 28 --- Home equity 10 17 Other secured --- --- 40 17 Total $ 739 $ 17 |
Aging of Recorded Investment in Past Due Loans by Class of Loans | The following table presents the aging of the recorded investment in past due loans as of March 31, 2016 and December 31, 2015 by class of loans (dollars in thousands): March 31, 2016 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 344 $ 31 $ 375 $ 388,250 $ 388,625 Commercial real estate: Residential developed --- --- --- 13,141 13,141 Unsecured to residential developers --- --- --- 7,491 7,491 Vacant and unimproved --- --- --- 45,429 45,429 Commercial development 192 49 241 417 658 Residential improved 122 6 128 68,730 68,858 Commercial improved 52 --- 52 294,340 294,392 Manufacturing and industrial --- --- --- 86,747 86,747 366 55 421 516,295 516,716 Consumer: Residential mortgage --- --- --- 214,104 214,104 Unsecured --- --- --- 577 577 Home equity --- --- --- 87,874 87,874 Other secured --- --- --- 8,288 8,288 --- --- --- 310,843 310,843 Total $ 710 $ 86 $ 796 $ 1,215,388 $ 1,216,184 December 31, 2015 30-90 Days Greater Than 90 Days Total Past Due Loans Not Past Due Total Commercial and industrial $ 719 $ 100 $ 819 $ 376,479 $ 377,298 Commercial real estate: Residential developed --- --- --- 10,448 10,448 Unsecured to residential developers --- --- --- 7,372 7,372 Vacant and unimproved --- --- --- 42,881 42,881 Commercial development --- 49 49 510 559 Residential improved 73 6 79 67,843 67,922 Commercial improved 375 --- 375 289,276 289,651 Manufacturing and industrial --- --- --- 89,839 89,839 448 55 503 508,169 508,672 Consumer: Residential mortgage --- --- --- 209,972 209,972 Unsecured --- --- --- 637 637 Home equity 32 17 49 92,667 92,716 Other secured --- --- --- 8,637 8,637 32 17 49 311,913 311,962 Total $ 1,199 $ 172 $ 1,371 $ 1,196,561 $ 1,197,932 |
Troubled Debt Restructurings | The following table presents information regarding troubled debt restructurings as of March 31, 2016 and December 31, 2015 (dollars in thousands): March 31, 2016 December 31, 2015 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial 31 $ 8,522 33 $ 7,611 Commercial real estate 55 16,132 56 17,871 Consumer 123 13,385 124 13,570 209 $ 38,039 213 $ 39,052 The following table presents information related to accruing troubled debt restructurings as of March 31, 2016 and December 31, 2015. The table presents the amount of accruing troubled debt restructurings that were on nonaccrual status prior to the restructuring, accruing at the time of restructuring and those that were upgraded to accruing status after receiving six consecutive monthly payments in accordance with the restructured terms as of each period reported (dollars in thousands): March 31, 2016 December 31, 2015 Accruing TDR - nonaccrual at restructuring $ --- $ --- Accruing TDR - accruing at restructuring 31,400 33,691 Accruing TDR - upgraded to accruing after six consecutive payments 6,319 4,784 $ 37,719 $ 38,475 The following tables present information regarding troubled debt restructurings executed during the three month periods ended March 31, 2016 and 2015 (dollars in thousands): Three Months Ended March 31, 2016 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial --- $ --- $ --- Commercial real estate --- --- --- Consumer 4 238 --- 4 $ 238 $ --- Three Months Ended March 31, 2015 Number of Loans Pre-Modification Outstanding Recorded Balance Principal Writedown upon Modification Commercial and industrial 1 $ 408 $ --- Commercial real estate 1 42 --- Consumer 29 753 --- 31 $ 1,203 $ --- |
Troubled Debt Restructured Loans That Defaulted During the Period | The table below presents, by class, information regarding troubled debt restructured loans which had payment defaults during the three month periods ended March 31, 2016 and 2015 (dollars in thousands). Included are loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring. Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Number of Loans Outstanding Recorded Balance Number of Loans Outstanding Recorded Balance Commercial and industrial --- $ --- --- $ --- Commercial real estate --- --- --- --- Consumer --- --- --- --- |
Risk Grade Category of Loans by Class of Loans | As of March 31, 2016 and December 31, 2015, the risk grade category of commercial loans by class of loans were as follows (dollars in thousands): March 31, 2016 1 2 3 4 5 6 7 8 Total Commercial and industrial $ --- $ 14,597 $ 111,894 $ 244,231 $ 10,713 $ 7,142 $ 48 $ --- $ 388,625 Commercial real estate: Residential developed --- --- 2,555 7,560 2,834 192 --- --- 13,141 Unsecured to residential developers --- --- --- 7,491 --- --- --- --- 7,491 Vacant and unimproved --- --- 21,700 19,362 4,367 --- --- --- 45,429 Commercial development --- --- --- 417 --- 192 49 --- 658 Residential improved --- --- 6,217 56,078 4,681 1,767 115 --- 68,858 Commercial improved --- 1,796 61,179 216,218 12,938 2,113 148 --- 294,392 Manufacturing & industrial --- 1,427 33,500 50,077 1,743 --- --- --- 86,747 $ --- $ 17,820 $ 237,045 $ 601,434 $ 37,276 $ 11,406 $ 360 $ --- $ 905,341 December 31, 2015 1 2 3 4 5 6 7 8 Total Commercial and industrial $ 196 $ 8,774 $ 114,451 $ 242,253 $ 5,235 $ 6,215 $ 174 $ --- $ 377,298 Commercial real estate: Residential developed --- --- 2,226 5,191 2,836 --- 195 --- 10,448 Unsecured to residential developers --- --- --- 7,372 --- --- --- --- 7,372 Vacant and unimproved --- --- 17,768 20,588 4,525 --- --- --- 42,881 Commercial development --- --- --- 318 --- 192 49 --- 559 Residential improved --- --- 7,191 54,376 4,722 1,509 124 --- 67,922 Commercial improved --- 3,094 60,475 208,127 15,645 2,153 157 --- 289,651 Manufacturing & industrial --- 1,478 34,857 50,023 3,481 --- --- --- 89,839 $ 196 $ 13,346 $ 236,968 $ 588,248 $ 36,444 $ 10,069 $ 699 $ --- $ 885,970 |
Commercial Loans Classified as Substandard or Worse | Commercial loans rated a 6 or worse per the Company’s internal risk rating system are considered substandard, doubtful or loss. Commercial loans classified as substandard or worse were as follows at period-end (dollars in thousands): March 31, 2016 December 31, 2015 Not classified as impaired $ 1,828 $ 1,986 Classified as impaired 9,938 8,782 Total commercial loans classified substandard or worse $ 11,766 $ 10,768 |
Recorded Investment in Consumer Loans Based on Payment Activity | The following table presents the recorded investment in consumer loans based on payment activity (dollars in thousands): March 31, 2016 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 214,104 $ 577 $ 87,874 $ 8,288 Nonperforming --- --- --- --- Total $ 214,104 $ 577 $ 87,874 $ 8,288 December 31, 2015 Residential Mortgage Consumer Unsecured Home Equity Consumer Other Performing $ 209,972 $ 637 $ 92,699 $ 8,637 Nonperforming --- --- 17 --- Total $ 209,972 $ 637 $ 92,716 $ 8,637 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
OTHER REAL ESTATE OWNED [Abstract] | |
Period-End Other Real Estate Owned | Other real estate owned was as follows (dollars in thousands): Three Months Ended March 31, 2016 Year Ended December 31, 2015 Three Months Ended March 31, 2015 Beginning balance $ 28,377 $ 43,071 $ 43,071 Additions, transfers from loans 102 2,520 699 Proceeds from sales of other real estate owned (1,475 ) (11,540 ) (1,452 ) Valuation allowance reversal upon sale (251 ) (4,748 ) (447 ) Gain (loss) on sales of other real estate owned 92 (926 ) 67 26,845 28,377 41,938 Less: valuation allowance (10,683 ) (10,805 ) (14,900 ) Ending balance $ 16,162 $ 17,572 $ 27,038 |
Activity in Valuation Allowance | Activity in the valuation allowance was as follows (dollars in thousands): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Beginning balance $ 10,805 $ 14,829 Additions charged to expense 129 518 Reversals upon sale (251 ) (447 ) Ending balance $ 10,683 $ 14,900 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
FAIR VALUE [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | Assets measured at fair value on a recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs March 31, 2016 U.S. Treasury and federal agency securities $ 76,973 $ --- $ 76,973 $ --- U.S. Agency MBS and CMOs 11,762 --- 11,762 --- Tax-exempt state and municipal bonds 36,341 --- 36,341 --- Taxable state and municipal bonds 26,434 --- 26,434 --- Corporate bonds and other debt securities 15,016 --- 15,016 --- Other equity securities 1,515 --- 1,515 --- Loans held for sale 2,259 --- 2,259 --- Interest rate swaps 1,220 --- --- 1,220 Interest rate swaps (1,220 ) --- --- (1,220 ) December 31, 2015 U.S. Treasury and federal agency securities $ 74,392 $ --- $ 74,392 $ --- U.S. Agency MBS and CMOs 13,755 --- 13,755 --- Tax-exempt state and municipal bonds 33,598 --- 33,598 --- Taxable state and municipal bonds 28,763 --- 28,763 --- Corporate bonds and other debt securities 14,813 --- 14,813 --- Other equity securities 1,494 --- 1,494 --- Loans held for sale 2,776 --- 2,776 --- Interest rate swaps 790 --- --- 790 Interest rate swaps (790 ) --- --- (790 ) |
Assets Measured at Fair Value on a Non-Recurring Basis | Assets measured at fair value on a non-recurring basis are summarized below (in thousands): Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2016 Impaired loans $ 6,306 $ --- $ --- $ 6,306 Other real estate owned 12,590 --- --- 12,590 December 31, 2015 Impaired loans $ 6,573 $ --- $ --- $ 6,573 Other real estate owned 13,602 --- --- 13,602 |
Quantitative Information about Level 3 Fair Value Measurements Measured on a Non-Recurring Basis | Quantitative information about Level 3 fair value measurements measured on a non-recurring basis were as follows at period end (dollars in thousands): Asset (Liability) Fair Value Valuation Technique Unobservable Inputs Range (%) March 31, 2016 Impaired Loans $ 6,306 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 19.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 12,590 Sales comparison approach Adjustment for differences between comparable sales 2.0 to 22.5 Income approach Capitalization rate 9.5 to 11.0 Asset (Liability) Fair Value Valuation Technique Unobservable Inputs Range (%) December 31, 2015 Impaired Loans $ 6,573 Sales comparison approach Adjustment for differences between comparable sales 1.0 to 19.0 Income approach Capitalization rate 9.5 to 11.0 Other real estate owned 13,602 Sales comparison approach Adjustment for differences between comparable sales 4.5 to 32.5 Income approach Capitalization rate 9.5 to 11.0 |
Carrying Amounts and Estimated Fair Values of Financial Instruments, Not Previously Presented | The carrying amounts and estimated fair values of financial instruments, not previously presented, were as follows at March 31, 2016 and December 31, 2015 (dollars in thousands): Level in March 31, 2016 December 31, 2015 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value Financial assets Cash and due from banks Level 1 $ 22,499 22,499 $ 29,104 29,104 Cash equivalents Level 2 72,104 72,104 152,372 152,372 Interest-bearing time deposits in other financial institutions Level 2 --- --- 20,000 20,008 Securities held to maturity Level 3 51,303 52,485 51,856 52,837 FHLB stock 11,558 NA 11,558 NA Loans, net Level 2 1,192,749 1,190,050 1,187,423 1,177,527 Bank owned life insurance Level 3 28,784 28,784 28,858 28,858 Accrued interest receivable Level 2 3,929 3,929 3,622 3,622 Financial liabilities Deposits Level 2 (1,340,834 ) (1,340,799 ) (1,435,512 ) (1,435,473 ) Other borrowed funds Level 2 (94,840 ) (95,917 ) (96,169 ) (96,465 ) Long-term debt Level 2 (41,238 ) (35,876 ) (41,238 ) (35,757 ) Accrued interest payable Level 2 (273 ) (273 ) (273 ) (273 ) Off-balance sheet credit-related items Loan commitments --- --- --- --- |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
DEPOSITS [Abstract] | |
Deposits at Period-End | Deposits are summarized as follows (in thousands): March 31, 2016 December 31, 2015 Noninterest-bearing demand $ 424,356 $ 477,032 Interest bearing demand 320,250 358,306 Savings and money market accounts 511,325 512,980 Certificates of deposit 84,903 87,194 $ 1,340,834 $ 1,435,512 |
OTHER BORROWED FUNDS (Tables)
OTHER BORROWED FUNDS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
OTHER BORROWED FUNDS [Abstract] | |
Advances from Federal Home Loan Bank | At period-end, advances from the Federal Home Loan Bank were as follows (dollars in thousands): Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate March 31, 2016 Single maturity fixed rate advances $ 90,000 August 2016 to March 2020 1.69 % Amortizable mortgage advances 4,840 March 2018 to July 2018 3.76 % $ 94,840 Principal Terms Advance Amount Range of Maturities Weighted Average Interest Rate December 31, 2015 Single maturity fixed rate advances $ 90,000 August 2016 to March 2020 1.69 % Amortizable mortgage advances 6,169 March 2018 to July 2018 3.78 % $ 96,169 |
Scheduled Repayments of FHLB Advances | Scheduled repayments of FHLB advances as of March 31, 2016 were as follows (in thousands): 2016 $ 20,667 2017 2,055 2018 52,118 2019 10,000 2020 10,000 Thereafter --- $ 94,840 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
EARNINGS PER COMMON SHARE [Abstract] | |
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings per Common Share | A reconciliation of the numerators and denominators of basic and diluted earnings per common share for the three month periods ended March 31, 2016 and 2015 are as follows (dollars in thousands, except per share data): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Net income available to common shares $ 3,495 $ 2,840 Weighted average shares outstanding, including participating stock awards - 33,925,113 33,866,789 Dilutive potential common shares: Stock options --- --- Stock warrants --- --- Weighted average shares outstanding - 33,925,113 33,866,789 Basic earnings per common share $ 0.10 $ 0.08 Diluted earnings per common share $ 0.10 $ 0.08 |
FEDERAL INCOME TAXES (Tables)
FEDERAL INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
FEDERAL INCOME TAXES [Abstract] | |
Income Tax Expense | Income tax expense was as follows (dollars in thousands): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Current $ 1,468 $ 653 Deferred (68 ) 592 $ 1,400 $ 1,245 |
Difference between Financial Statement Tax Expense and Amount Computed by Applying Statutory Federal Tax Rate to Pretax Income | The difference between the financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income was reconciled as follows (dollars in thousands): Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Statutory rate 35 % 35 % Statutory rate applied to income before taxes $ 1,713 $ 1,430 Add (deduct) Tax-exempt interest income (148 ) (117 ) Bank-owned life insurance (155 ) (57 ) Other, net (10 ) (11 ) $ 1,400 $ 1,245 |
Deferred Tax Assets and Liabilities | The net deferred tax asset recorded included the following amounts of deferred tax assets and liabilities (dollars in thousands): March 31, 2016 December31, 2015 Deferred tax assets Allowance for loan losses $ 5,995 $ 5,978 Nonaccrual loan interest 830 850 Valuation allowance on other real estate owned 3,739 3,782 Unrealized loss on securities available for sale --- --- Other 704 647 Gross deferred tax assets 11,268 11,257 Valuation allowance --- --- Total net deferred tax assets 11,268 11,257 Deferred tax liabilities Depreciation (1,682 ) (1,739 ) Prepaid expenses (191 ) (191 ) Unrealized gain on securities available for sale (528 ) (187 ) Other (321 ) (321 ) Gross deferred tax liabilities (2,722 ) (2,438 ) Net deferred tax asset $ 8,546 $ 8,819 |
COMMITMENTS AND OFF BALANCE-S30
COMMITMENTS AND OFF BALANCE-SHEET RISK (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
COMMITMENTS AND OFF BALANCE-SHEET RISK [Abstract] | |
Summary of Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk | A summary of the contractual amounts of financial instruments with off‑balance‑sheet risk was as follows at period-end (dollars in thousands): March 31, 2016 December 31, 2015 Commitments to make loans $ 90,346 $ 97,991 Letters of credit 14,379 12,976 Unused lines of credit 416,720 426,080 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
SHAREHOLDERS' EQUITY [Abstract] | |
Actual Capital Levels and Minimum Required Levels | At March 31, 2016 and December 31, 2015, actual capital levels and minimum required levels were (dollars in thousands): Actual Minimum Required For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio March 31, 2016 CET1 capital (to risk weighted assets) Consolidated $ 154,260 11.0 % $ 63,378 4.5 % N/A N/A Bank 188,872 13.4 63,370 4.5 $ 91,535 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 194,260 13.8 84,504 6.0 N/A N/A Bank 188,872 13.4 84,494 6.0 112,658 8.0 Total capital (to risk weighted assets) Consolidated 211,396 15.0 112,672 8.0 N/A N/A Bank 206,008 14.6 112,658 8.0 140,823 10.0 Tier 1 capital (to average assets) Consolidated 194,260 11.7 66,489 4.0 N/A N/A Bank 188,872 11.4 66,412 4.0 83,015 5.0 December 31, 2015 CET1 capital (to risk weighted assets) Consolidated $ 151,630 10.8 % $ 63,479 4.5 % N/A N/A Bank 186,930 13.2 63,463 4.5 $ 91,668 6.5 % Tier 1 capital (to risk weighted assets) Consolidated 191,630 13.6 84,638 6.0 N/A N/A Bank 186,930 13.2 84,617 6.0 112,822 8.0 Total capital (to risk weighted assets) Consolidated 208,711 14.8 112,851 8.0 N/A N/A Bank 203,471 14.4 112,822 8.0 141,028 10.0 Tier 1 capital (to average assets) Consolidated 191,630 11.5 66,400 4.0 N/A N/A Bank 186,930 11.2 66,332 4.0 82,915 5.0 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | |
Mar. 31, 2016USD ($)BranchGradeInterestRateSwap | Dec. 31, 2015USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
Number of full service branch offices | Branch | 26 | |
Residential Mortgage [Member] | ||
Allowance for Loan Losses [Abstract] | ||
Period of historical loss experience used for estimating allowance for general component of non-classified loans | 12 months | |
Commercial [Member] | ||
Allowance for Loan Losses [Abstract] | ||
Period of historical loss experience used for estimating allowance for general component of non-classified loans | 18 months | |
Threshold relationship balance of loans evaluated for impairment | $ 500,000 | |
Minimum internal risk grading of loans evaluated for impairment | Grade | 6 | |
Commercial Real Estate [Member] | ||
Allowance for Loan Losses [Abstract] | ||
Threshold relationship balance of loans evaluated for impairment | $ 500,000 | |
Minimum internal risk grading of loans evaluated for impairment | Grade | 6 | |
Consumer [Member] | ||
Allowance for Loan Losses [Abstract] | ||
Period of historical loss experience used for estimating allowance for general component of non-classified loans | 12 months | |
Swap [Member] | Interest Rate Swap [Member] | ||
Derivatives [Abstract] | ||
Number of derivative instruments held | InterestRateSwap | 2 | |
Notional amount of agreements | $ 48,500,000 | $ 48,500,000 |
Derivative asset fair value | 1,200,000 | 790,000 |
Derivative liability fair value | $ 1,200,000 | $ 790,000 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Available for Sale [Abstract] | |||
Amortized cost | $ 166,532 | $ 166,281 | |
Gross unrealized gains | 1,651 | 1,040 | |
Gross unrealized losses | (142) | (506) | |
Fair value | 168,041 | 166,815 | |
Proceeds from sale of available-for-sale securities | 9,418 | $ 12,063 | |
Gain on sale of securities | 89 | 83 | |
Reclassification adjustment for securities gain recognized in earnings, net of tax | 58 | $ 54 | |
Held to Maturity [Abstract] | |||
Amortized cost | 51,303 | 51,856 | |
Fair value | 52,485 | 52,837 | |
U.S. Treasury and Federal Agency Securities [Member] | |||
Available for Sale [Abstract] | |||
Amortized cost | 76,689 | 74,618 | |
Gross unrealized gains | 327 | 48 | |
Gross unrealized losses | (43) | (274) | |
Fair value | 76,973 | 74,392 | |
U.S. Agency MBS and CMOs [Member] | |||
Available for Sale [Abstract] | |||
Amortized cost | 11,719 | 13,828 | |
Gross unrealized gains | 73 | 35 | |
Gross unrealized losses | (30) | (108) | |
Fair value | 11,762 | 13,755 | |
Tax-Exempt State and Municipal Bonds [Member] | |||
Available for Sale [Abstract] | |||
Amortized cost | 35,557 | 32,943 | |
Gross unrealized gains | 835 | 692 | |
Gross unrealized losses | (51) | (37) | |
Fair value | 36,341 | 33,598 | |
Taxable State and Municipal Bonds [Member] | |||
Available for Sale [Abstract] | |||
Amortized cost | 26,093 | 28,554 | |
Gross unrealized gains | 345 | 246 | |
Gross unrealized losses | (4) | (37) | |
Fair value | 26,434 | 28,763 | |
Corporate Bonds and Other Debt Securities [Member] | |||
Available for Sale [Abstract] | |||
Amortized cost | 14,974 | 14,838 | |
Gross unrealized gains | 56 | 19 | |
Gross unrealized losses | (14) | (44) | |
Fair value | 15,016 | 14,813 | |
Other Equity Securities [Member] | |||
Available for Sale [Abstract] | |||
Amortized cost | 1,500 | 1,500 | |
Gross unrealized gains | 15 | 0 | |
Gross unrealized losses | 0 | (6) | |
Fair value | 1,515 | 1,494 | |
Tax-Exempt State and Municipal Bonds [Member] | |||
Held to Maturity [Abstract] | |||
Amortized cost | 51,303 | 51,856 | |
Gross unrealized gains | 1,182 | 986 | |
Gross unrealized losses | 0 | (5) | |
Fair value | $ 52,485 | $ 52,837 |
SECURITIES, Contractual Maturit
SECURITIES, Contractual Maturities of Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Held-to-Maturity Securities, Amortized Cost [Abstract] | ||
Due in one year or less | $ 14,655 | |
Due from one to five years | 9,704 | |
Due from five to ten years | 14,744 | |
Due after ten years | 12,200 | |
Amortized cost | 51,303 | $ 51,856 |
Held-to-Maturity Securities, Fair Value [Abstract] | ||
Due in one year or less | 14,673 | |
Due from one to five years | 9,873 | |
Due from five to ten years | 15,556 | |
Due after ten years | 12,383 | |
Fair value | 52,485 | $ 52,837 |
Available-for-Sale Securities, Amortized Cost [Abstract] | ||
Due in one year or less | 12,213 | |
Due from one to five years | 98,184 | |
Due from five to ten years | 41,794 | |
Due after ten years | 12,841 | |
Amortized cost | 165,032 | |
Available-for-Sale Securities, Fair Value [Abstract] | ||
Due in one year or less | 12,256 | |
Due from one to five years | 98,805 | |
Due from five to ten years | 42,559 | |
Due after ten years | 12,906 | |
Fair value | $ 166,526 |
SECURITIES, Continuous Unrealiz
SECURITIES, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Securities in continuous unrealized losses position, fair value [Abstract] | ||
Less than 12 months, fair value | $ 30,023 | $ 66,401 |
12 months or more, fair value | 6,940 | 10,197 |
Total, fair value | 36,963 | 76,598 |
Securities in continuous unrealized loss position, aggregate losses [Abstract] | ||
Less than 12 months, unrealized loss | (92) | (386) |
12 months or more, unrealized loss | (50) | (125) |
Total, unrealized loss | (142) | (511) |
U.S. Treasury and Federal Agency Securities [Member] | ||
Securities in continuous unrealized losses position, fair value [Abstract] | ||
Less than 12 months, fair value | 12,335 | 35,090 |
12 months or more, fair value | 3,107 | 7,036 |
Total, fair value | 15,442 | 42,126 |
Securities in continuous unrealized loss position, aggregate losses [Abstract] | ||
Less than 12 months, unrealized loss | (33) | (187) |
12 months or more, unrealized loss | (10) | (82) |
Total, unrealized loss | (43) | (269) |
U.S. Agency MBS and CMOs [Member] | ||
Securities in continuous unrealized losses position, fair value [Abstract] | ||
Less than 12 months, fair value | 1,937 | 8,842 |
12 months or more, fair value | 1,828 | 0 |
Total, fair value | 3,765 | 8,842 |
Securities in continuous unrealized loss position, aggregate losses [Abstract] | ||
Less than 12 months, unrealized loss | (9) | (108) |
12 months or more, unrealized loss | (21) | 0 |
Total, unrealized loss | (30) | (108) |
Tax-Exempt State and Municipal Bonds [Member] | ||
Securities in continuous unrealized losses position, fair value [Abstract] | ||
Less than 12 months, fair value | 11,652 | 3,487 |
12 months or more, fair value | 860 | 2,022 |
Total, fair value | 12,512 | 5,509 |
Securities in continuous unrealized loss position, aggregate losses [Abstract] | ||
Less than 12 months, unrealized loss | (36) | (9) |
12 months or more, unrealized loss | (15) | (33) |
Total, unrealized loss | (51) | (42) |
Taxable State and Municipal Bonds [Member] | ||
Securities in continuous unrealized losses position, fair value [Abstract] | ||
Less than 12 months, fair value | 529 | 8,158 |
12 months or more, fair value | 643 | 640 |
Total, fair value | 1,172 | 8,798 |
Securities in continuous unrealized loss position, aggregate losses [Abstract] | ||
Less than 12 months, unrealized loss | (2) | (29) |
12 months or more, unrealized loss | (2) | (8) |
Total, unrealized loss | (4) | (37) |
Corporate Bonds and Other Debt Securities [Member] | ||
Securities in continuous unrealized losses position, fair value [Abstract] | ||
Less than 12 months, fair value | 3,570 | 9,330 |
12 months or more, fair value | 502 | 499 |
Total, fair value | 4,072 | 9,829 |
Securities in continuous unrealized loss position, aggregate losses [Abstract] | ||
Less than 12 months, unrealized loss | (12) | (47) |
12 months or more, unrealized loss | (2) | (2) |
Total, unrealized loss | (14) | (49) |
Other Equity Securities [Member] | ||
Securities in continuous unrealized losses position, fair value [Abstract] | ||
Less than 12 months, fair value | 0 | 1,494 |
12 months or more, fair value | 0 | 0 |
Total, fair value | 0 | 1,494 |
Securities in continuous unrealized loss position, aggregate losses [Abstract] | ||
Less than 12 months, unrealized loss | 0 | (6) |
12 months or more, unrealized loss | 0 | 0 |
Total, unrealized loss | $ 0 | $ (6) |
SECURITIES, Pledged Securities
SECURITIES, Pledged Securities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
SECURITIES [Abstract] | ||
Securities pledged as security for public deposits, letters of credit and for other purposes required or permitted by law | $ 2 | $ 2 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Portfolio loans [Abstract] | ||||
Total loans | $ 1,216,184 | $ 1,197,932 | ||
Allowance for loan losses | (17,129) | (17,081) | $ (18,680) | $ (18,962) |
Net loans | 1,199,055 | 1,180,851 | ||
Commercial and Industrial [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | 388,625 | 377,298 | ||
Allowance for loan losses | (4,945) | (4,826) | (6,174) | (6,173) |
Commercial Real Estate [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | 516,716 | 508,672 | ||
Allowance for loan losses | (8,449) | (8,457) | (8,570) | (8,690) |
Commercial Real Estate [Member] | Residential Developed [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | 13,141 | 10,448 | ||
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | 7,491 | 7,372 | ||
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | 45,429 | 42,881 | ||
Commercial Real Estate [Member] | Commercial Development [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | 658 | 559 | ||
Commercial Real Estate [Member] | Residential Improved [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | 68,858 | 67,922 | ||
Commercial Real Estate [Member] | Commercial Improved [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | 294,392 | 289,651 | ||
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | 86,747 | 89,839 | ||
Consumer [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | 310,843 | 311,962 | ||
Allowance for loan losses | (3,699) | (3,761) | $ (3,907) | $ (4,046) |
Consumer [Member] | Residential Mortgage [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | 214,104 | 209,972 | ||
Consumer [Member] | Unsecured [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | 577 | 637 | ||
Consumer [Member] | Home Equity [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | 87,874 | 92,716 | ||
Consumer [Member] | Other Secured [Member] | ||||
Portfolio loans [Abstract] | ||||
Total loans | $ 8,288 | $ 8,637 |
LOANS, Allowance for Loans Loss
LOANS, Allowance for Loans Losses by Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for loan losses by portfolio [Roll Forward] | ||
Beginning balance | $ 17,081 | $ 18,962 |
Charge-offs | (76) | (78) |
Recoveries | 224 | 796 |
Provision for loan losses | (100) | (1,000) |
Ending balance | 17,129 | 18,680 |
Commercial and Industrial [Member] | ||
Allowance for loan losses by portfolio [Roll Forward] | ||
Beginning balance | 4,826 | 6,173 |
Charge-offs | 0 | 0 |
Recoveries | 49 | 84 |
Provision for loan losses | 70 | (83) |
Ending balance | 4,945 | 6,174 |
Commercial Real Estate [Member] | ||
Allowance for loan losses by portfolio [Roll Forward] | ||
Beginning balance | 8,457 | 8,690 |
Charge-offs | 0 | 0 |
Recoveries | 121 | 608 |
Provision for loan losses | (129) | (728) |
Ending balance | 8,449 | 8,570 |
Consumer [Member] | ||
Allowance for loan losses by portfolio [Roll Forward] | ||
Beginning balance | 3,761 | 4,046 |
Charge-offs | (76) | (78) |
Recoveries | 54 | 104 |
Provision for loan losses | (40) | (165) |
Ending balance | 3,699 | 3,907 |
Unallocated [Member] | ||
Allowance for loan losses by portfolio [Roll Forward] | ||
Beginning balance | 37 | 53 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision for loan losses | (1) | (24) |
Ending balance | $ 36 | $ 29 |
LOANS, Allowance for Loans Lo39
LOANS, Allowance for Loans Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Ending allowance attributable to loans [Abstract] | ||||
Individually reviewed for impairment | $ 1,879 | $ 1,938 | ||
Collectively evaluated for impairment | 15,250 | 15,143 | ||
Total ending allowance balance | 17,129 | 17,081 | $ 18,680 | $ 18,962 |
Loans [Abstract] | ||||
Individually reviewed for impairment | 37,611 | 38,750 | ||
Collectively evaluated for impairment | 1,178,573 | 1,159,182 | ||
Total ending loans balance | 1,216,184 | 1,197,932 | ||
Commercial and Industrial [Member] | ||||
Ending allowance attributable to loans [Abstract] | ||||
Individually reviewed for impairment | 574 | 673 | ||
Collectively evaluated for impairment | 4,371 | 4,153 | ||
Total ending allowance balance | 4,945 | 4,826 | 6,174 | 6,173 |
Loans [Abstract] | ||||
Individually reviewed for impairment | 8,622 | 7,718 | ||
Collectively evaluated for impairment | 380,003 | 369,580 | ||
Total ending loans balance | 388,625 | 377,298 | ||
Commercial Real Estate [Member] | ||||
Ending allowance attributable to loans [Abstract] | ||||
Individually reviewed for impairment | 495 | 436 | ||
Collectively evaluated for impairment | 7,954 | 8,021 | ||
Total ending allowance balance | 8,449 | 8,457 | 8,570 | 8,690 |
Loans [Abstract] | ||||
Individually reviewed for impairment | 15,840 | 17,569 | ||
Collectively evaluated for impairment | 500,876 | 491,103 | ||
Total ending loans balance | 516,716 | 508,672 | ||
Consumer [Member] | ||||
Ending allowance attributable to loans [Abstract] | ||||
Individually reviewed for impairment | 810 | 829 | ||
Collectively evaluated for impairment | 2,889 | 2,932 | ||
Total ending allowance balance | 3,699 | 3,761 | 3,907 | 4,046 |
Loans [Abstract] | ||||
Individually reviewed for impairment | 13,149 | 13,463 | ||
Collectively evaluated for impairment | 297,694 | 298,499 | ||
Total ending loans balance | 310,843 | 311,962 | ||
Unallocated [Member] | ||||
Ending allowance attributable to loans [Abstract] | ||||
Individually reviewed for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 36 | 37 | ||
Total ending allowance balance | 36 | 37 | $ 29 | $ 53 |
Loans [Abstract] | ||||
Individually reviewed for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 0 | 0 | ||
Total ending loans balance | $ 0 | $ 0 |
LOANS, Impaired Loans (Details)
LOANS, Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | $ 4,387 | $ 2,947 | |
With no allowance, Recorded Investment | 4,387 | 2,947 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 33,224 | 35,803 | |
With related allowance, Recorded Investment | 33,224 | 35,803 | |
Allowance Allocated | 1,879 | 1,938 | |
Total impaired, Unpaid Principal Balance | 37,611 | 38,750 | |
Total impaired, Recorded Investment, Total | 37,611 | 38,750 | |
Commercial and Industrial [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 4,094 | 2,736 | |
With no allowance, Recorded Investment | 4,094 | 2,736 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 4,528 | 4,982 | |
With related allowance, Recorded Investment | 4,528 | 4,982 | |
Allowance Allocated | 574 | 673 | |
Impaired loans [Abstract] | |||
Average of impaired loans | 8,265 | $ 9,703 | |
Interest income recognized during impairment | 298 | 326 | |
Cash-basis interest income recognized | 288 | 328 | |
Commercial Real Estate [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 293 | 211 | |
With no allowance, Recorded Investment | 293 | 211 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 15,547 | 17,358 | |
With related allowance, Recorded Investment | 15,547 | 17,358 | |
Allowance Allocated | 495 | 436 | |
Impaired loans [Abstract] | |||
Interest income recognized during impairment | 201 | 356 | |
Cash-basis interest income recognized | 200 | 351 | |
Commercial Real Estate [Member] | Residential Developed [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 0 | 0 | |
With no allowance, Recorded Investment | 0 | 0 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 0 | 0 | |
With related allowance, Recorded Investment | 0 | 0 | |
Allowance Allocated | 0 | 0 | |
Impaired loans [Abstract] | |||
Average of impaired loans | 0 | 937 | |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 0 | 0 | |
With no allowance, Recorded Investment | 0 | 0 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 0 | 0 | |
With related allowance, Recorded Investment | 0 | 0 | |
Allowance Allocated | 0 | 0 | |
Impaired loans [Abstract] | |||
Average of impaired loans | 0 | 0 | |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 206 | 206 | |
With no allowance, Recorded Investment | 206 | 206 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 237 | 247 | |
With related allowance, Recorded Investment | 237 | 247 | |
Allowance Allocated | 6 | 7 | |
Impaired loans [Abstract] | |||
Average of impaired loans | 446 | 1,490 | |
Commercial Real Estate [Member] | Commercial Development [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 0 | 0 | |
With no allowance, Recorded Investment | 0 | 0 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 192 | 192 | |
With related allowance, Recorded Investment | 192 | 192 | |
Allowance Allocated | 6 | 6 | |
Impaired loans [Abstract] | |||
Average of impaired loans | 192 | 198 | |
Commercial Real Estate [Member] | Residential Improved [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 87 | 5 | |
With no allowance, Recorded Investment | 87 | 5 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 5,423 | 5,254 | |
With related allowance, Recorded Investment | 5,423 | 5,254 | |
Allowance Allocated | 260 | 140 | |
Impaired loans [Abstract] | |||
Average of impaired loans | 5,543 | 7,661 | |
Commercial Real Estate [Member] | Commercial Improved [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 0 | 0 | |
With no allowance, Recorded Investment | 0 | 0 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 9,457 | 11,425 | |
With related allowance, Recorded Investment | 9,457 | 11,425 | |
Allowance Allocated | 214 | 274 | |
Impaired loans [Abstract] | |||
Average of impaired loans | 9,537 | 16,759 | |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 0 | 0 | |
With no allowance, Recorded Investment | 0 | 0 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 238 | 240 | |
With related allowance, Recorded Investment | 238 | 240 | |
Allowance Allocated | 9 | 9 | |
Impaired loans [Abstract] | |||
Average of impaired loans | 239 | 2,706 | |
Consumer [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 0 | 0 | |
With no allowance, Recorded Investment | 0 | 0 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 13,149 | 13,463 | |
With related allowance, Recorded Investment | 13,149 | 13,463 | |
Allowance Allocated | 810 | 829 | |
Impaired loans [Abstract] | |||
Average of impaired loans | 13,140 | 14,784 | |
Interest income recognized during impairment | 122 | 137 | |
Cash-basis interest income recognized | 123 | $ 140 | |
Consumer [Member] | Residential Mortgage [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 0 | 0 | |
With no allowance, Recorded Investment | 0 | 0 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 8,579 | 8,655 | |
With related allowance, Recorded Investment | 8,579 | 8,655 | |
Allowance Allocated | 529 | 533 | |
Consumer [Member] | Unsecured [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 0 | 0 | |
With no allowance, Recorded Investment | 0 | 0 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 0 | 0 | |
With related allowance, Recorded Investment | 0 | 0 | |
Allowance Allocated | 0 | 0 | |
Consumer [Member] | Home Equity [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 0 | 0 | |
With no allowance, Recorded Investment | 0 | 0 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 4,570 | 4,808 | |
With related allowance, Recorded Investment | 4,570 | 4,808 | |
Allowance Allocated | 281 | 296 | |
Consumer [Member] | Other Secured [Member] | |||
With no related allowance recorded [Abstract] | |||
With no allowance, Unpaid Principal Balance | 0 | 0 | |
With no allowance, Recorded Investment | 0 | 0 | |
With related allowance recorded [Abstract] | |||
With related allowance, Unpaid Principal Balance | 0 | 0 | |
With related allowance, Recorded Investment | 0 | 0 | |
Allowance Allocated | $ 0 | $ 0 |
LOANS, Past Due Loans (Details)
LOANS, Past Due Loans (Details) | 3 Months Ended | |
Mar. 31, 2016USD ($)Payment | Dec. 31, 2015USD ($) | |
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | $ 396,000 | $ 739,000 |
Over 90 days Accruing | 31,000 | 17,000 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 796,000 | 1,371,000 |
Loans Not Past Due | 1,215,388,000 | 1,196,561,000 |
Total ending loans balance | 1,216,184,000 | 1,197,932,000 |
Specific reserves allocated to customers with modified term loans in troubled debt restructurings | $ 1,879,000 | 1,938,000 |
Number of consecutive payment before nonaccrual restructured loan is upgraded | Payment | 6 | |
Number of months of performance before a loan is removed from TDR | 6 months | |
30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | $ 710,000 | 1,199,000 |
Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 86,000 | 172,000 |
Commercial and Industrial [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 48,000 | 174,000 |
Over 90 days Accruing | 31,000 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 375,000 | 819,000 |
Loans Not Past Due | 388,250,000 | 376,479,000 |
Total ending loans balance | 388,625,000 | 377,298,000 |
Commercial and Industrial [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 344,000 | 719,000 |
Commercial and Industrial [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 31,000 | 100,000 |
Commercial Real Estate [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 312,000 | 525,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 421,000 | 503,000 |
Loans Not Past Due | 516,295,000 | 508,169,000 |
Total ending loans balance | 516,716,000 | 508,672,000 |
Commercial Real Estate [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 366,000 | 448,000 |
Commercial Real Estate [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 55,000 | 55,000 |
Commercial Real Estate [Member] | Residential Developed [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 0 | 195,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Loans Not Past Due | 13,141,000 | 10,448,000 |
Total ending loans balance | 13,141,000 | 10,448,000 |
Commercial Real Estate [Member] | Residential Developed [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate [Member] | Residential Developed [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 0 | 0 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Loans Not Past Due | 7,491,000 | 7,372,000 |
Total ending loans balance | 7,491,000 | 7,372,000 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 0 | 0 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Loans Not Past Due | 45,429,000 | 42,881,000 |
Total ending loans balance | 45,429,000 | 42,881,000 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate [Member] | Commercial Development [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 49,000 | 49,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 241,000 | 49,000 |
Loans Not Past Due | 417,000 | 510,000 |
Total ending loans balance | 658,000 | 559,000 |
Commercial Real Estate [Member] | Commercial Development [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 192,000 | 0 |
Commercial Real Estate [Member] | Commercial Development [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 49,000 | 49,000 |
Commercial Real Estate [Member] | Residential Improved [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 115,000 | 124,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 128,000 | 79,000 |
Loans Not Past Due | 68,730,000 | 67,843,000 |
Total ending loans balance | 68,858,000 | 67,922,000 |
Commercial Real Estate [Member] | Residential Improved [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 122,000 | 73,000 |
Commercial Real Estate [Member] | Residential Improved [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 6,000 | 6,000 |
Commercial Real Estate [Member] | Commercial Improved [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 148,000 | 157,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 52,000 | 375,000 |
Loans Not Past Due | 294,340,000 | 289,276,000 |
Total ending loans balance | 294,392,000 | 289,651,000 |
Commercial Real Estate [Member] | Commercial Improved [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 52,000 | 375,000 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 0 | 0 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Loans Not Past Due | 86,747,000 | 89,839,000 |
Total ending loans balance | 86,747,000 | 89,839,000 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate [Member] | Manufacturing and Industrial [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Consumer [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 36,000 | 40,000 |
Over 90 days Accruing | 0 | 17,000 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 49,000 |
Loans Not Past Due | 310,843,000 | 311,913,000 |
Total ending loans balance | 310,843,000 | 311,962,000 |
Consumer [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 32,000 |
Consumer [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 17,000 |
Consumer [Member] | Residential Mortgage [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 2,000 | 2,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Loans Not Past Due | 214,104,000 | 209,972,000 |
Total ending loans balance | 214,104,000 | 209,972,000 |
Consumer [Member] | Residential Mortgage [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Consumer [Member] | Residential Mortgage [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Consumer [Member] | Unsecured [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 25,000 | 28,000 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Loans Not Past Due | 577,000 | 637,000 |
Total ending loans balance | 577,000 | 637,000 |
Consumer [Member] | Unsecured [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Consumer [Member] | Unsecured [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Consumer [Member] | Home Equity [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 9,000 | 10,000 |
Over 90 days Accruing | 0 | 17,000 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 49,000 |
Loans Not Past Due | 87,874,000 | 92,667,000 |
Total ending loans balance | 87,874,000 | 92,716,000 |
Consumer [Member] | Home Equity [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 32,000 |
Consumer [Member] | Home Equity [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 17,000 |
Consumer [Member] | Other Secured [Member] | ||
Recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans [Abstract] | ||
Nonaccrual | 0 | 0 |
Over 90 days Accruing | 0 | 0 |
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Loans Not Past Due | 8,288,000 | 8,637,000 |
Total ending loans balance | 8,288,000 | 8,637,000 |
Consumer [Member] | Other Secured [Member] | 30-90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | 0 | 0 |
Consumer [Member] | Other Secured [Member] | Greater Than 90 Days [Member] | ||
Aging of recorded investment in past due loans by class of loans [Abstract] | ||
Total Past Due | $ 0 | $ 0 |
LOANS, Troubled Debt Restructur
LOANS, Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016USD ($)Loan | Mar. 31, 2015USD ($)Loan | Dec. 31, 2015USD ($)Loan | |
Troubled debt restructurings [Abstract] | |||
Number of Loans | Loan | 209 | 213 | |
Outstanding Recorded Balance | $ 38,039 | $ 39,052 | |
Accruing troubled debt restructurings [Abstract] | |||
Accruing TDR - nonaccrual at restructuring | 0 | 0 | |
Accruing TDR - accruing at restructuring | 31,400 | 33,691 | |
Accruing TDR - upgraded to accruing after six consecutive payments | 6,319 | 4,784 | |
Total | $ 37,719 | $ 38,475 | |
Troubled debt restructurings executed during current period [Abstract] | |||
Number of Loans | Loan | 4 | 31 | |
Pre-Modification Outstanding Recorded Balance | $ 238 | $ 1,203 | |
Principal Write-down upon Modification | $ 0 | $ 0 | |
Commercial and Industrial [Member] | |||
Troubled debt restructurings [Abstract] | |||
Number of Loans | Loan | 31 | 33 | |
Outstanding Recorded Balance | $ 8,522 | $ 7,611 | |
Troubled debt restructurings executed during current period [Abstract] | |||
Number of Loans | Loan | 0 | 1 | |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 408 | |
Principal Write-down upon Modification | $ 0 | $ 0 | |
Loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring [Abstract] | |||
Number of Loans | Loan | 0 | 0 | |
Outstanding Recorded Balance | $ 0 | $ 0 | |
Commercial Real Estate [Member] | |||
Troubled debt restructurings [Abstract] | |||
Number of Loans | Loan | 55 | 56 | |
Outstanding Recorded Balance | $ 16,132 | $ 17,871 | |
Troubled debt restructurings executed during current period [Abstract] | |||
Number of Loans | Loan | 0 | 1 | |
Pre-Modification Outstanding Recorded Balance | $ 0 | $ 42 | |
Principal Write-down upon Modification | $ 0 | $ 0 | |
Loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring [Abstract] | |||
Number of Loans | Loan | 0 | 0 | |
Outstanding Recorded Balance | $ 0 | $ 0 | |
Consumer [Member] | |||
Troubled debt restructurings [Abstract] | |||
Number of Loans | Loan | 123 | 124 | |
Outstanding Recorded Balance | $ 13,385 | $ 13,570 | |
Troubled debt restructurings executed during current period [Abstract] | |||
Number of Loans | Loan | 4 | 29 | |
Pre-Modification Outstanding Recorded Balance | $ 238 | $ 753 | |
Principal Write-down upon Modification | $ 0 | $ 0 | |
Loans that became delinquent more than 90 days past due or transferred to nonaccrual within 12 months of restructuring [Abstract] | |||
Number of Loans | Loan | 0 | 0 | |
Outstanding Recorded Balance | $ 0 | $ 0 |
LOANS, Credit Quality Indicator
LOANS, Credit Quality Indicators (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)Grade | Dec. 31, 2015USD ($) | |
LOANS [Abstract] | ||
Number point grading system used for loan quality | Grade | 8 | |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 905,341 | $ 885,970 |
Minimal internal risk grade category of loans considered substandard, doubtful or loss | Grade | 6 | |
Commercial Loans [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | 196 |
Commercial Loans [Member] | Above Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 17,820 | 13,346 |
Commercial Loans [Member] | Good Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 237,045 | 236,968 |
Commercial Loans [Member] | Acceptable Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 601,434 | 588,248 |
Commercial Loans [Member] | Marginally Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 37,276 | 36,444 |
Commercial Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,406 | 10,069 |
Commercial Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 360 | 699 |
Commercial Loans [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 388,625 | 377,298 |
Commercial and Industrial [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 196 |
Commercial and Industrial [Member] | Above Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 14,597 | 8,774 |
Commercial and Industrial [Member] | Good Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 111,894 | 114,451 |
Commercial and Industrial [Member] | Acceptable Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 244,231 | 242,253 |
Commercial and Industrial [Member] | Marginally Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 10,713 | 5,235 |
Commercial and Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,142 | 6,215 |
Commercial and Industrial [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 48 | 174 |
Commercial and Industrial [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Residential Developed [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13,141 | 10,448 |
Commercial Real Estate [Member] | Residential Developed [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Residential Developed [Member] | Above Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Residential Developed [Member] | Good Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,555 | 2,226 |
Commercial Real Estate [Member] | Residential Developed [Member] | Acceptable Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,560 | 5,191 |
Commercial Real Estate [Member] | Residential Developed [Member] | Marginally Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,834 | 2,836 |
Commercial Real Estate [Member] | Residential Developed [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 192 | 0 |
Commercial Real Estate [Member] | Residential Developed [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 195 |
Commercial Real Estate [Member] | Residential Developed [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,491 | 7,372 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Above Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Good Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Acceptable Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,491 | 7,372 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Marginally Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Unsecured to Residential Developers [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 45,429 | 42,881 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Above Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Good Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 21,700 | 17,768 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Acceptable Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19,362 | 20,588 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Marginally Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,367 | 4,525 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Vacant and Unimproved [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Commercial Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 658 | 559 |
Commercial Real Estate [Member] | Commercial Development [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Commercial Development [Member] | Above Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Commercial Development [Member] | Good Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Commercial Development [Member] | Acceptable Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 417 | 318 |
Commercial Real Estate [Member] | Commercial Development [Member] | Marginally Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Commercial Development [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 192 | 192 |
Commercial Real Estate [Member] | Commercial Development [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 49 | 49 |
Commercial Real Estate [Member] | Commercial Development [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Residential Improved [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 68,858 | 67,922 |
Commercial Real Estate [Member] | Residential Improved [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Residential Improved [Member] | Above Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Residential Improved [Member] | Good Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,217 | 7,191 |
Commercial Real Estate [Member] | Residential Improved [Member] | Acceptable Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 56,078 | 54,376 |
Commercial Real Estate [Member] | Residential Improved [Member] | Marginally Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,681 | 4,722 |
Commercial Real Estate [Member] | Residential Improved [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,767 | 1,509 |
Commercial Real Estate [Member] | Residential Improved [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 115 | 124 |
Commercial Real Estate [Member] | Residential Improved [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Commercial Improved [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 294,392 | 289,651 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Above Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,796 | 3,094 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Good Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 61,179 | 60,475 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Acceptable Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 216,218 | 208,127 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Marginally Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12,938 | 15,645 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,113 | 2,153 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 148 | 157 |
Commercial Real Estate [Member] | Commercial Improved [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 86,747 | 89,839 |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Above Average [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,427 | 1,478 |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Good Quality [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 33,500 | 34,857 |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Acceptable Risk [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 50,077 | 50,023 |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Marginally Acceptable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,743 | 3,481 |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Commercial Real Estate [Member] | Manufacturing & Industrial [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 0 |
LOANS, Commercial Loans Classif
LOANS, Commercial Loans Classified as Substandard or Worse (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Classified as impaired | $ 37,611 | $ 38,750 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 905,341 | 885,970 |
Commercial Loans [Member] | Substandard or Worse [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Not classified as impaired | 1,828 | 1,986 |
Classified as impaired | 9,938 | 8,782 |
Total loans | $ 11,766 | $ 10,768 |
LOANS, Recorded Investment in C
LOANS, Recorded Investment in Consumer Loans Based on Payment Activity (Details) - Consumer Loan [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 214,104 | $ 209,972 |
Residential Mortgage [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 214,104 | 209,972 |
Residential Mortgage [Member] | Nonperforming [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Unsecured [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 577 | 637 |
Unsecured [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 577 | 637 |
Unsecured [Member] | Nonperforming [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 87,874 | 92,716 |
Home Equity [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 87,874 | 92,699 |
Home Equity [Member] | Nonperforming [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 17 |
Other Secured [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,288 | 8,637 |
Other Secured [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,288 | 8,637 |
Other Secured [Member] | Nonperforming [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 0 |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Period-end other real estate owned [Roll Forward] | |||
Beginning balance | $ 28,377 | $ 43,071 | $ 43,071 |
Additions, transfers from loans | 102 | 699 | 2,520 |
Proceeds from sales of other real estate owned | (1,475) | (1,452) | (11,540) |
Valuation allowance reversal upon sale | (251) | (447) | (4,748) |
Gain (loss) on sales of other real estate owned | 92 | 67 | (926) |
Other real estate owned, gross | 26,845 | 41,938 | 28,377 |
Less: valuation allowance | (10,683) | (14,900) | (10,805) |
Ending balance | 16,162 | 27,038 | 17,572 |
Activity in valuation allowance [Roll Forward] | |||
Beginning balance | 10,805 | 14,829 | 14,829 |
Additions charged to expense | 129 | 518 | |
Reversals upon sale | (251) | (447) | |
Ending balance | $ 10,683 | $ 14,900 | $ 10,805 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Recurring Basis [Member] | ||
Asset measured at fair value on recurring basis [Abstract] | ||
U.S. Treasury and federal agency securities | $ 76,973 | $ 74,392 |
U.S. Agency MBS and CMOs | 11,762 | 13,755 |
Tax-exempt state and municipal bonds | 36,341 | 33,598 |
Taxable state and municipal bonds | 26,434 | 28,763 |
Corporate bonds and other debt securities | 15,016 | 14,813 |
Other equity securities | 1,515 | 1,494 |
Loans held for sale | 2,259 | 2,776 |
Interest rate swaps | 1,220 | 790 |
Interest rate swaps | (1,220) | (790) |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Asset measured at fair value on recurring basis [Abstract] | ||
U.S. Treasury and federal agency securities | 0 | 0 |
U.S. Agency MBS and CMOs | 0 | 0 |
Tax-exempt state and municipal bonds | 0 | 0 |
Taxable state and municipal bonds | 0 | 0 |
Corporate bonds and other debt securities | 0 | 0 |
Other equity securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Interest rate swaps | 0 | 0 |
Interest rate swaps | 0 | 0 |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Asset measured at fair value on recurring basis [Abstract] | ||
U.S. Treasury and federal agency securities | 76,973 | 74,392 |
U.S. Agency MBS and CMOs | 11,762 | 13,755 |
Tax-exempt state and municipal bonds | 36,341 | 33,598 |
Taxable state and municipal bonds | 26,434 | 28,763 |
Corporate bonds and other debt securities | 15,016 | 14,813 |
Other equity securities | 1,515 | 1,494 |
Loans held for sale | 2,259 | 2,776 |
Interest rate swaps | 0 | 0 |
Interest rate swaps | 0 | 0 |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Asset measured at fair value on recurring basis [Abstract] | ||
U.S. Treasury and federal agency securities | 0 | 0 |
U.S. Agency MBS and CMOs | 0 | 0 |
Tax-exempt state and municipal bonds | 0 | 0 |
Taxable state and municipal bonds | 0 | 0 |
Corporate bonds and other debt securities | 0 | 0 |
Other equity securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Interest rate swaps | 1,220 | 790 |
Interest rate swaps | (1,220) | (790) |
Nonrecurring Basis [Member] | ||
Asset measured at fair value on non-recurring basis [Abstract] | ||
Impaired loans | 6,306 | 6,573 |
Other real estate owned | 12,590 | 13,602 |
Nonrecurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Asset measured at fair value on non-recurring basis [Abstract] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Asset measured at fair value on non-recurring basis [Abstract] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Asset measured at fair value on non-recurring basis [Abstract] | ||
Impaired loans | 6,306 | 6,573 |
Other real estate owned | 12,590 | 13,602 |
Impaired Loans [Member] | Sales Comparison Approach [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset (Liability) fair value | $ 6,306 | $ 6,573 |
Impaired Loans [Member] | Sales Comparison Approach [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between comparable sales | 1.00% | 1.00% |
Impaired Loans [Member] | Sales Comparison Approach [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between comparable sales | 19.00% | 19.00% |
Impaired Loans [Member] | Income Approach [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Capitalization rate | 9.50% | 9.50% |
Impaired Loans [Member] | Income Approach [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Capitalization rate | 11.00% | 11.00% |
Other Real Estate Owned [Member] | Sales Comparison Approach [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Asset (Liability) fair value | $ 12,590 | $ 13,602 |
Other Real Estate Owned [Member] | Sales Comparison Approach [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between comparable sales | 2.00% | 4.50% |
Other Real Estate Owned [Member] | Sales Comparison Approach [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between comparable sales | 22.50% | 32.50% |
Other Real Estate Owned [Member] | Income Approach [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Capitalization rate | 9.50% | 9.50% |
Other Real Estate Owned [Member] | Income Approach [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Capitalization rate | 11.00% | 11.00% |
FAIR VALUE, Balance Sheet Group
FAIR VALUE, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financial assets [Abstract] | ||
Cash and due from banks | $ 22,499 | $ 29,104 |
Securities held to maturity | 52,485 | 52,837 |
Bank owned life insurance | 28,784 | 28,858 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
FHLB stock | 11,558 | 11,558 |
Commitments to Make Loans [Member] | Carrying Amount [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit-related items | 0 | 0 |
Commitments to Make Loans [Member] | Fair Value [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet credit-related items | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 22,499 | 29,104 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and due from banks | 22,499 | 29,104 |
Significant Other Observable Inputs (Level 2) [Member] | Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash equivalents | 72,104 | 152,372 |
Interest-bearing time deposits in other financial institutions | 0 | 20,000 |
Loans, net | 1,192,749 | 1,187,423 |
Accrued interest receivable | 3,929 | 3,622 |
Financial liabilities [Abstract] | ||
Deposits | (1,340,834) | (1,435,512) |
Other borrowed funds | (94,840) | (96,169) |
Long-term debt | (41,238) | (41,238) |
Accrued interest payable | (273) | (273) |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash equivalents | 72,104 | 152,372 |
Interest-bearing time deposits in other financial institutions | 0 | 20,008 |
Loans, net | 1,190,050 | 1,177,527 |
Accrued interest receivable | 3,929 | 3,622 |
Financial liabilities [Abstract] | ||
Deposits | (1,340,799) | (1,435,473) |
Other borrowed funds | (95,917) | (96,465) |
Long-term debt | (35,876) | (35,757) |
Accrued interest payable | (273) | (273) |
Significant Unobservable Inputs (Level 3) [Member] | Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Securities held to maturity | 51,303 | 51,856 |
Bank owned life insurance | 28,784 | 28,858 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ||
Financial assets [Abstract] | ||
Securities held to maturity | 52,485 | 52,837 |
Bank owned life insurance | $ 28,784 | $ 28,858 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Summary of deposit [Abstract] | ||
Noninterest-bearing demand | $ 424,356 | $ 477,032 |
Interest bearing demand | 320,250 | 358,306 |
Savings and money market accounts | 511,325 | 512,980 |
Certificates of deposit | 84,903 | 87,194 |
Total deposits | 1,340,834 | 1,435,512 |
Certificate of deposits, $250,000 or more denominations | $ 18,300 | $ 17,100 |
OTHER BORROWED FUNDS, Federal H
OTHER BORROWED FUNDS, Federal Home Loan Bank Advances (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Advances from Federal Home Loan Bank [Abstract] | ||
Advance amount | $ 94,840,000 | $ 96,169,000 |
Residential and commercial real estate loans pledged as collateral for Federal Home Loan Bank advances | 435,348,000 | 440,660,000 |
Single Maturity Fixed Rate Advances [Member] | ||
Advances from Federal Home Loan Bank [Abstract] | ||
Advance amount | $ 90,000,000 | $ 90,000,000 |
Range of maturities, earliest | 2,016 | 2,016 |
Range of maturities, last | 2,020 | 2,020 |
Weighted average interest rate | 1.69% | 1.69% |
Amortizable Mortgage Advances [Member] | ||
Advances from Federal Home Loan Bank [Abstract] | ||
Advance amount | $ 4,840,000 | $ 6,169,000 |
Range of maturities, earliest | 2,018 | 2,018 |
Range of maturities, last | 2,018 | 2,018 |
Weighted average interest rate | 3.76% | 3.78% |
OTHER BORROWED FUNDS, Scheduled
OTHER BORROWED FUNDS, Scheduled Repayments of FHLB Advances (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Scheduled repayments of FHLB advances [Abstract] | ||
2,016 | $ 20,667 | |
2,017 | 2,055 | |
2,018 | 52,118 | |
2,019 | 10,000 | |
2,020 | 10,000 | |
Thereafter | 0 | |
Total | $ 94,840 | $ 96,169 |
OTHER BORROWED FUNDS, Federal R
OTHER BORROWED FUNDS, Federal Reserve Bank Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Federal Reserve Bank borrowings [Abstract] | ||
Unused borrowing capacity to Federal Reserve Bank | $ 18.2 | $ 18.5 |
Commercial and mortgage loans pledged to the Federal Reserve Bank | $ 21.1 | $ 21.6 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciliation of numerators and denominators of basic and diluted earnings per common share [Abstract] | ||
Net income available to common shares | $ 3,495 | $ 2,840 |
Weighted average shares outstanding, including participating stock awards - Basic (in shares) | 33,925,113 | 33,866,789 |
Dilutive potential common shares [Abstract] | ||
Stock options (in shares) | 0 | 0 |
Stock warrants (in shares) | 0 | 0 |
Weighted average shares outstanding - Diluted (in shares) | 33,925,113 | 33,866,789 |
Basic earnings per common share (in dollars per share) | $ 0.10 | $ 0.08 |
Diluted earnings per common share (in dollars per share) | $ 0.10 | $ 0.08 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 101,473 | 260,261 |
FEDERAL INCOME TAXES (Details)
FEDERAL INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income tax expense [Abstract] | |||
Current | $ 1,468 | $ 653 | |
Deferred | (68) | 592 | |
Income tax expense | $ 1,400 | $ 1,245 | |
Difference between financial statement tax expense and amount computed by applying the statutory federal tax rate to pretax income [Abstract] | |||
Statutory rate | 35.00% | 35.00% | |
Statutory rate applied to income before taxes | $ 1,713 | $ 1,430 | |
Add (deduct) [Abstract] | |||
Tax-exempt interest income | (148) | (117) | |
Bank-owned life insurance | (155) | (57) | |
Other, net | (10) | (11) | |
Income tax expense | 1,400 | $ 1,245 | |
Deferred tax assets [Abstract] | |||
Allowance for loan losses | 5,995 | $ 5,978 | |
Nonaccrual loan interest | 830 | 850 | |
Valuation allowance on other real estate owned | 3,739 | 3,782 | |
Unrealized loss on securities available for sale | 0 | 0 | |
Other | 704 | 647 | |
Gross deferred tax assets | 11,268 | 11,257 | |
Valuation allowance | 0 | 0 | |
Total net deferred tax assets | 11,268 | 11,257 | |
Deferred tax liabilities [Abstract] | |||
Depreciation | (1,682) | (1,739) | |
Prepaid expenses | (191) | (191) | |
Unrealized gain on securities available for sale | (528) | (187) | |
Other | (321) | (321) | |
Gross deferred tax liabilities | (2,722) | (2,438) | |
Net deferred tax asset | 8,546 | 8,819 | |
Unrecognized tax benefits | $ 0 | $ 0 | |
Period when unrecognized tax benefits is not expected to significantly increase or decrease | 12 months |
COMMITMENTS AND OFF BALANCE-S55
COMMITMENTS AND OFF BALANCE-SHEET RISK (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract] | ||
Notional amount of commitments to fund mortgage loans to be sold into the secondary market | $ 17,200 | $ 19,800 |
Commitments to make loans at fixed rates | 41.00% | |
Expiration period of commitment to make variable rate loan | 30 days | |
Commitments to Make Loans [Member] | ||
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | $ 90,346 | 97,991 |
Letters of Credit [Member] | ||
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | 14,379 | 12,976 |
Unused Lines of Credit [Member] | ||
Summary of the contractual amounts of financial instruments with off-balance-sheet risk [Abstract] | ||
Contractual amounts of financial instruments with off-balance-sheet risk | $ 416,720 | $ 426,080 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)Category | Dec. 31, 2015USD ($) | |
SHAREHOLDERS' EQUITY [Abstract] | ||
Number of classification of prompt corrective action regulations | Category | 5 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
CET1 capital (to risk weighted assets), actual amount | $ 154,260 | $ 151,630 |
CET1 capital (to risk weighted assets), actual ratio | 11.00% | 10.80% |
Tier 1 capital (to risk weighted assets), actual amount | $ 194,260 | $ 191,630 |
Tier 1 capital (to risk weighted assets), actual ratio | 13.80% | 13.60% |
Total capital (to risk weighted assets), actual amount | $ 211,396 | $ 208,711 |
Total capital (to risk weighted assets), actual ratio | 15.00% | 14.80% |
Tier 1 capital (to average assets), actual amount | $ 194,260 | $ 191,630 |
Tier 1 capital (to average assets), actual ratio | 11.70% | 11.50% |
CET1 capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | $ 63,378 | $ 63,479 |
CET1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio | 4.50% | 4.50% |
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | $ 84,504 | $ 84,638 |
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio | 6.00% | 6.00% |
Total capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | $ 112,672 | $ 112,851 |
Total capital (to risk weighted assets) minimum required for capital adequacy purposes, ratio | 8.00% | 8.00% |
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, amount | $ 66,489 | $ 66,400 |
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, ratio | 4.00% | 4.00% |
Trust preferred securities that qualified as Tier one risk based capital | $ 40,000 | $ 40,000 |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
CET1 capital (to risk weighted assets), actual amount | $ 188,872 | $ 186,930 |
CET1 capital (to risk weighted assets), actual ratio | 13.40% | 13.20% |
Tier 1 capital (to risk weighted assets), actual amount | $ 188,872 | $ 186,930 |
Tier 1 capital (to risk weighted assets), actual ratio | 13.40% | 13.20% |
Total capital (to risk weighted assets), actual amount | $ 206,008 | $ 203,471 |
Total capital (to risk weighted assets), actual ratio | 14.60% | 14.40% |
Tier 1 capital (to average assets), actual amount | $ 188,872 | $ 186,930 |
Tier 1 capital (to average assets), actual ratio | 11.40% | 11.20% |
CET1 capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | $ 63,370 | $ 63,463 |
CET1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio | 4.50% | 4.50% |
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | $ 84,494 | $ 84,617 |
Tier 1 capital (to risk weighted assets), minimum required for capital adequacy purposes, ratio | 6.00% | 6.00% |
Total capital (to risk weighted assets), minimum required for capital adequacy purposes, amount | $ 112,658 | $ 112,822 |
Total capital (to risk weighted assets) minimum required for capital adequacy purposes, ratio | 8.00% | 8.00% |
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, amount | $ 66,412 | $ 66,332 |
Tier 1 capital (to average assets), minimum required for capital adequacy purposes, ratio | 4.00% | 4.00% |
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount | $ 91,535 | $ 91,668 |
CET1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio | 6.50% | 6.50% |
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount | $ 112,658 | $ 112,822 |
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio | 8.00% | 8.00% |
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, amount | $ 140,823 | $ 141,028 |
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action regulations, ratio | 10.00% | 10.00% |
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, amount | $ 83,015 | $ 82,915 |
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action regulations, ratio | 5.00% | 5.00% |