Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 11, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | CITIZENS FIRST CORP | |
Entity Central Index Key | 1,073,475 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 2,000,087 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from financial institutions | $ 6,259 | $ 8,865 |
Federal funds sold | 1,095 | 6,390 |
Cash and cash equivalents | 7,354 | 15,255 |
Interest-bearing deposits in other financial institutions | 2,728 | 2,728 |
Available-for-sale securities | 58,541 | 60,200 |
Loans held for sale | 118 | |
Loans, net of allowance for loan losses of $4,949 and $4,916 at June 30, 2016 and December 31, 2015, respectively | 342,064 | 325,866 |
Premises and equipment, net | 9,543 | 9,998 |
Bank owned life insurance (BOLI) | 8,262 | 8,174 |
Federal Home Loan Bank (FHLB) stock, at cost | 2,025 | 2,025 |
Accrued interest receivable | 1,536 | 1,680 |
Deferred income taxes | 1,177 | 1,328 |
Goodwill | 4,097 | 4,097 |
Core deposit intangible | 230 | 265 |
Other real estate owned | 66 | 100 |
Other assets | 514 | 465 |
Total Assets | 438,255 | 432,181 |
Deposits | ||
Noninterest bearing | 49,623 | 48,522 |
Savings, NOW and money market | 163,951 | 168,335 |
Time | 139,859 | 153,531 |
Total deposits | 353,433 | 370,388 |
FHLB advances and other borrowings | 36,000 | 15,000 |
Subordinated debentures | 5,000 | 5,000 |
Accrued interest payable | 223 | 213 |
Other liabilities | 2,152 | 2,056 |
Total Liabilities | 396,808 | 392,657 |
Stockholders' Equity | ||
6.5% cumulative convertible preferred stock; no par value, authorized 250 shares, aggregate liquidation preference of $7,998; issued and outstanding 237 and 250 shares at June 30, 2016 and December 31, 2015, respectively | 7,261 | 7,659 |
Common stock, no par value, authorized 5,000,000 shares; issued and outstanding 1,999,587 and 1,968,777 shares at June 30, 2016 and December 31, 2015, respectively | 25,862 | 25,406 |
Retained earnings | 7,876 | 6,304 |
Accumulated other comprehensive income | 448 | 155 |
Total stockholders' equity | 41,447 | 39,524 |
Total liabilities and stockholders' equity | $ 438,255 | $ 432,181 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Consolidated Balance Sheets | ||
Loans, allowance for loan losses (in dollars) | $ 4,949 | $ 4,916 |
Preferred stock, dividend rate (as a percent) | 6.50% | 6.50% |
Preferred stock no par value | $ 0 | $ 0 |
Preferred stock, authorized shares | 250 | 250 |
Preferred stock, aggregate liquidation preference (in dollars) | $ 7,998 | $ 7,998 |
Preferred stock, issued shares | 237 | 250 |
Preferred stock, outstanding shares | 237 | 250 |
Common stock no par value | $ 0 | $ 0 |
Common stock, authorized shares | 5,000,000 | 5,000,000 |
Common stock, issued shares | 1,999,587 | 1,968,777 |
Common stock, outstanding shares | 1,999,587 | 1,968,777 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest and dividend income | ||||
Loans | $ 4,162 | $ 4,108 | $ 8,265 | $ 8,058 |
Taxable securities | 177 | 154 | 354 | 306 |
Non-taxable securities | 159 | 173 | 318 | 349 |
Federal funds sold and other | 38 | 34 | 75 | 62 |
Total interest and dividend income | 4,536 | 4,469 | 9,012 | 8,775 |
Interest expense | ||||
Deposits | 514 | 580 | 1,042 | 1,129 |
FHLB advances and other | 81 | 74 | 138 | 145 |
Subordinated debentures | 29 | 24 | 57 | 48 |
Total interest expense | 624 | 678 | 1,237 | 1,322 |
Net interest income | 3,912 | 3,791 | 7,775 | 7,453 |
Provision (credit) for loan losses | (85) | 120 | (85) | 200 |
Net interest income after provision (credit) for loan losses | 3,997 | 3,671 | 7,860 | 7,253 |
Non-interest income | ||||
Service charges on deposit accounts | 339 | 358 | 664 | 675 |
Other service charges and fees | 179 | 176 | 343 | 311 |
Gain on sale of mortgage loans | 91 | 79 | 168 | 110 |
Non-deposit brokerage fees | 75 | 87 | 147 | 179 |
Lease income | 49 | 70 | 94 | 143 |
BOLI income | 44 | 46 | 88 | 91 |
Gain on sale of available-for-sale securities | 55 | 10 | 106 | 10 |
Total non-interest income | 832 | 826 | 1,610 | 1,519 |
Non-interest expenses | ||||
Salaries and employee benefits | 1,676 | 1,589 | 3,460 | 3,237 |
Net occupancy expense | 492 | 493 | 975 | 1,021 |
Advertising and public relations | 98 | 123 | 159 | 175 |
Professional fees | 137 | 187 | 317 | 351 |
Data processing services | 263 | 238 | 519 | 477 |
Franchise shares and deposit tax | 132 | 145 | 264 | 291 |
FDIC insurance | 59 | 63 | 118 | 122 |
Core deposit intangible amortization | 18 | 17 | 35 | 35 |
Postage and office supplies | 45 | 52 | 91 | 92 |
Other real estate owned expenses | 23 | 29 | 24 | 36 |
Loss on branch disposal | 27 | |||
Other | 354 | 310 | 678 | 612 |
Total non-interest expenses | 3,297 | 3,246 | 6,667 | 6,449 |
Income before income taxes | 1,532 | 1,251 | 2,803 | 2,323 |
Income taxes | 458 | 352 | 824 | 642 |
Net income | 1,074 | 899 | 1,979 | 1,681 |
Dividends and accretion on preferred stock | 123 | 130 | 247 | 258 |
Net income available for common stockholders | $ 951 | $ 769 | $ 1,732 | $ 1,423 |
Basic earnings per common share (in dollars per share) | $ 0.48 | $ 0.39 | $ 0.87 | $ 0.72 |
Diluted earnings per common share (in dollars per share) | $ 0.42 | $ 0.35 | $ 0.78 | $ 0.64 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Comprehensive income, net of tax | ||||
Net income | $ 1,074 | $ 899 | $ 1,979 | $ 1,681 |
Other comprehensive income (loss) | ||||
Reclassification adjustment for gains included in net income, net of taxes | (36) | (7) | (70) | (7) |
Change in unrealized gain on available for sale securities, net of taxes | 207 | (371) | 363 | (122) |
Total other comprehensive income (loss) | 171 | (378) | 293 | (129) |
Comprehensive income | $ 1,245 | $ 521 | $ 2,272 | $ 1,552 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Preferred Stock | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2014 | $ 7,659 | $ 27,072 | $ 3,373 | $ 344 | $ 38,448 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 1,681 | 1,681 | |||
Change in accumulated other comprehensive income | (129) | (129) | |||
Dividend declared and paid on preferred stock | (258) | (258) | |||
Repurchase of TARP Warrants | (1,706) | (1,706) | |||
Balance at Jun. 30, 2015 | 7,659 | 25,366 | 4,797 | 215 | 38,037 |
Balance at Dec. 31, 2015 | 7,659 | 25,406 | 6,304 | 155 | 39,524 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 1,979 | 1,979 | |||
Conversion of cumulative preferred | (398) | 398 | |||
Exercise of director stock options | 16 | 16 | |||
Stock based compensation | 42 | 42 | |||
Change in accumulated other comprehensive income | 293 | 293 | |||
Dividend declared and paid on common stock ($.08 per share) | (160) | (160) | |||
Dividend declared and paid on preferred stock | (247) | (247) | |||
Balance at Jun. 30, 2016 | $ 7,261 | $ 25,862 | $ 7,876 | $ 448 | $ 41,447 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Activities | ||
Net income | $ 1,979 | $ 1,681 |
Items not requiring (providing) cash: | ||
Depreciation and amortization | 274 | 276 |
Provision (credit) for loan losses | (85) | 200 |
Amortization of premiums and discounts on securities | 158 | 170 |
Amortization of core deposit intangible | 35 | 35 |
Stock based compensation | 42 | |
BOLI income | (88) | (91) |
Proceeds from sale of mortgage loans | 7,408 | 5,225 |
Origination of mortgage loans held for sale | (7,359) | (5,195) |
Gains on sales of available-for-sale securities | (106) | (10) |
Gain on sales of mortgage loans | (168) | (110) |
Write-downs and losses on other real estate owned | 35 | |
Loss/(gain) on sale of premises and equipment | 4 | (8) |
Loss on branch disposal | 27 | |
Changes in: | ||
Accrued interest receivable | 144 | 28 |
Other assets | (48) | (86) |
Accrued interest payable and other liabilities | 106 | 187 |
Net cash provided by operating activities | 2,323 | 2,337 |
Investing Activities | ||
Loan originations and payments, net | (16,179) | 4,149 |
Purchase of premises and equipment | (48) | (158) |
Proceeds from maturities of available-for-sale securities | 5,373 | 3,468 |
Proceeds from sales of available-for-sale securities | 3,839 | 1,010 |
Proceeds from sales of other real owned | 100 | 62 |
Proceeds from branch disposal | 197 | |
Purchase of available-for-sale securities | (7,160) | (4,199) |
Net cash (used in) provided by in investing activities | (13,878) | 4,332 |
Financing Activities | ||
Net change in demand deposits, money market, NOW and savings accounts | (3,283) | 12,003 |
Net change in time deposits | (13,672) | 15,008 |
Repayment of FHLB advances | (5,000) | (11,000) |
Proceeds from FHLB advances | 27,000 | |
Repurchase of TARP warrants | (1,706) | |
Proceeds (payments) from other borrowings | (1,000) | 1,500 |
Exercise of stock options | 16 | |
Dividends paid on common stock | (160) | |
Dividends paid on preferred stock | (247) | (258) |
Net cash provided by financing activities | 3,654 | 15,547 |
Increase in Cash and Cash Equivalents | (7,901) | 22,216 |
Cash and Cash Equivalents, Beginning of Year | 15,255 | 11,322 |
Cash and Cash Equivalents, End of Quarter | 7,354 | 33,538 |
Supplemental Cash Flows Information | ||
Interest paid | 1,227 | 1,311 |
Income taxes paid | 650 | 525 |
Conversion of cumulative preferred stock | 398 | |
Loans transferred to other real estate owned | $ 66 | $ 111 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | Note 1 — Nature of Operations and Summary of Significant Accounting Policies The accounting and reporting policies of Citizens First Corporation (the “Company”) and its wholly owned subsidiary, Citizens First Bank, Inc. (the “Bank”), conform to U.S. generally accepted accounting principles and general practices within the banking industry. The consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany transactions and accounts have been eliminated in consolidation. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates used in the preparation of the financial statements are based on various factors including the current interest rate environment and the general strength of the local economy. Changes in the overall interest rate environment can significantly affect the Company’s net interest income and the value of its recorded assets and liabilities. Actual results could differ from those estimates used in the preparation of the financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in the accompanying unaudited financial statements. Those adjustments consist only of normal recurring adjustments. Results of interim periods are not necessarily indicative of results to be expected for the full year. Recent Accounting Pronouncements — In May 2014 the FASB amended existing guidance related to revenue from contracts with customers. This amendment supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this amendment specifies the accounting for some costs to obtain or fulfill a contract with a customer. These amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. In March 2016, the FASB issued ASU 2016-08 that clarifies how to apply revenue recognition guidance related to whether an entity is a principal or an agent. The amendments in this update affect this guidance issued in 2014 that is not yet effective. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. In January 2016 the FASB issued ASU 2016-01 which amends existing guidance on the classification and measurement of financial instruments. This new standard revises and entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The new standard is effective for reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. In February 2016 the FASB issued ASU 2016-02 which establishes the principles to report information about the assets and liabilities that arise from leases. This new standard changes the way operating leases are account for and reflected on the lessee’s balance sheet. The new standard is intended to increase transparency and comparability by requiring lessees to recognize the financial obligation and right-of-use asset associated with operating leases that have a lease term of more than 12 months on the balance sheet. The new standard is effective for reporting periods beginning after December 15, 2018. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. In March 2016 the FASB issued ASU 2016-09 which provides guidance on share-based payment accounting. The new standard includes multiple provision intended to simplify various aspects of the accounting for share-based payments. The new standard is effective for reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces the current expected credit loss (CECL) model and replaces the incurred loss model. The most significant impact for financial institutions will be to the allowance for loan and lease losses (ALLL). The standard allows for various expected credit loss estimation methods and is scalable. This standard is effective for reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. |
Reclassifications
Reclassifications | 6 Months Ended |
Jun. 30, 2016 | |
Reclassifications | |
Reclassifications | Note 2 - Reclassifications Certain reclassifications have been made to the consolidated financial statements of prior periods to conform to the current period presentation. These reclassifications do not affect net income or total stockholders’ equity as previously reported. |
Available-For-Sale Securities
Available-For-Sale Securities | 6 Months Ended |
Jun. 30, 2016 | |
Available-For-Sale Securities | |
Available-For-Sale Securities | Note 3 - Available-For-Sale Securities The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at June 30, 2016 and December 31, 2015 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income: (Dollars in Thousands) Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2016 U. S. government agencies and government sponsored entities $ $ $ — $ Agency mortgage-backed securities: residential ) State and municipal ) Trust preferred security — ) Corporate bonds — ) Total Available-for-Sale Securities $ $ $ ) $ December 31, 2015 U. S. government agencies and government sponsored entities $ $ $ ) $ Agency mortgage-backed securities: residential ) State and municipal ) Trust preferred security — ) Corporate bonds — ) Total Available-for-Sale Securities $ $ $ ) $ The amortized cost and fair value of investment securities at June 30, 2016 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately. June 30, 2016 (Dollars in Thousands) Available-For-Sale Amortized Cost Fair Value Due in one year or less $ $ Due from one to five years Due from five to ten years Due after ten years Agency mortgage-backed: residential Total $ $ The following table summarizes the investment securities with unrealized losses by portfolio segment at June 30, 2016 and December 31, 2015, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position: (Dollars in Thousands) Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2016: U.S. government agencies and government sponsored entities $ — $ — $ — $ — $ — $ — Agency mortgage-backed: residential ) — — ) State and municipal ) — — ) Trust preferred security — — ) ) Corporate Bonds ) — — ) Total temporarily impaired $ $ ) $ $ ) $ $ ) (Dollars in Thousands) Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2015: U.S. government agencies and government sponsored entities $ — $ — $ $ ) $ $ ) Agency mortgage-backed: residential ) ) ) State and municipal ) ) ) Trust preferred security — — ) ) Corporate bonds ) — — ) Total temporarily impaired $ $ ) $ $ ) $ $ ) 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. Investment securities classified as available-for-sale are generally evaluated for OTTI under ASC Topic 320, “Investments - Debt and Equity Securities.” In determining OTTI under the ASC Topic 320 model, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. All rated securities are investment grade. For those that are not rated, the financial condition has been evaluated and no adverse conditions were identified related to repayment. Declines in fair value are a function of rate differences in the market and market illiquidity. The Company does not intend or is not expected to be required to sell these securities before recovery of their amortized cost basis. All of the Company’s unrealized losses 12 months or more relate to its investment in a single trust preferred security. The security is a single-issuer trust preferred that is not rated. No impairment charge is being taken as no loss of principal or interest is anticipated. All principal and interest payments are being received as scheduled. On a quarterly basis, we evaluate the creditworthiness of the issuer, a bank holding company with operations in the state of Kentucky. Based on the issuer’s continued profitability and well-capitalized position, we do not deem that there is credit loss. The decline in fair value is primarily attributable to illiquidity affecting these markets and not the expected cash flows of the individual securities. We have evaluated the financial condition and near term prospects of the issuer and expect to fully recover our cost basis. This security continues to pay interest as agreed and future payments are expected to be made as agreed. This security is not considered to be other-than-temporarily impaired. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2016 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | Note 4 - Loans and Allowance for Loan Losses Categories of loans include: (Dollars in Thousands) June 30, 2016 December 31, 2015 Commercial $ $ Commercial real estate: Construction Other Residential real estate Consumer: Auto Other Total loans Less allowance for loan losses ) ) Net loans $ $ The following table sets forth an analysis of our allowance for loan losses for the three months ending June 30, 2016 and 2015. (Dollars in Thousands) Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total June 30, 2016 Allowance for loan losses: Beginning balance $ $ $ $ $ $ Provision (credit) for loan losses ) ) ) ) Loans charged-off ) ) ) — — ) Recoveries — Total ending allowance balance $ $ $ $ $ $ (Dollars in Thousands) Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total June 30, 2015 Allowance for loan losses: Beginning balance $ $ $ $ $ $ Provision for loan losses ) ) ) Loans charged-off ) — ) ) — ) Recoveries — Total ending allowance balance $ $ $ $ $ $ The following table sets forth an analysis of our allowance for loan losses for the six months ending June 30, 2016 and 2015. (Dollars in Thousands) Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total June 30, 2016 Allowance for loan losses: Beginning balance $ $ $ $ $ $ Provision (credit) for loan losses ) ) ) ) Loans charged-off ) ) ) — — ) Recoveries — Total ending allowance balance $ $ $ $ $ $ (Dollars in Thousands) Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total June 30, 2015 Allowance for loan losses: Beginning balance $ $ $ $ $ $ Provision for loan losses ) ) ) Loans charged-off ) ) ) ) — ) Recoveries — Total ending allowance balance $ $ $ $ $ $ The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of June 30, 2016 and December 31, 2015, which includes net deferred loan fees. As of June 30, 2016 and December 31, 2015, accrued interest receivable of $1.2 million and $1.3 million, respectively, are not considered significant and therefore not included in the recorded investment in loans presented in the following tables. (Dollars in Thousands) Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total June 30, 2016 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ $ $ $ $ — $ Collectively evaluated Total ending allowance balance $ $ $ $ $ $ Loans: Individually evaluated for impairment $ $ $ $ $ — $ Collectively evaluated — Total ending loans balance $ $ $ $ $ — $ (Dollars in Thousands) Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total December 31, 2015 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ $ $ $ — $ — $ Collectively evaluated Total ending allowance balance $ $ $ $ $ $ Loans: Individually evaluated for impairment $ $ $ $ $ — $ Collectively evaluated — Total ending loans balance $ $ $ $ $ — $ The following table presents information related to impaired loans by class of loans as of June 30, 2016 and December 31, 2015. In this table presentation the unpaid principal balance of the loans has not been reduced by partial net charge-offs and the recorded investment of the loans was reduced by partial net charge-offs. (Dollars in Thousands) (Dollars in Thousands) June 30, 2016 December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With no related allowance recorded: Commercial $ $ $ — $ $ $ — Commercial real estate: Other — — Residential real estate — — Consumer: Other — — — — — — Subtotal $ $ $ — $ $ $ — With an allowance recorded: Commercial $ $ $ $ $ $ Commercial real estate: Other Residential real estate Consumer: Other — Subtotal $ $ $ $ $ $ Total $ $ $ $ $ $ Information on impaired loans for the three months ending June 30, 2016 and 2015 is as follows: (Dollars in Thousands) (Dollars in Thousands) June 30, 2016 June 30, 2015 Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Commercial $ $ $ $ $ $ Commercial real estate: Construction — — — — — — Other Residential real estate Consumer: Auto — — — — — — Other — — — — Total $ $ $ $ $ $ Information on impaired loans for the six months ending June 30, 2016 and 2015 is as follows: (Dollars in Thousands) (Dollars in Thousands) June 30, 2016 June 30, 2015 Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Commercial $ $ $ $ $ $ Commercial real estate: Construction — — — — — — Other Residential real estate Consumer: Auto — — — — — — Other — — Total $ $ $ $ $ $ The recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2016 and December 31, 2015 are summarized below: (Dollars in Thousands) (Dollars in Thousands) June 30, 2016 December 31, 2015 Loans Past Due Over 90 Days and Still Accruing Nonaccrual Loans Past Due Over 90 Days and Still Accruing Nonaccrual Commercial $ $ — $ — $ — Commercial real estate: Construction — — — — Other — — — Residential real estate — — Consumer: Auto — — — — Other — — — — Total $ $ $ — $ Nonaccrual loans and loans past due 90 days still on accrual include individually classified impaired loans. The following tables present the aging of the recorded investment in past due loans as of June 30, 2016 and December 31, 2015 by class of loans. Non-accrual loans are included and have been categorized based on their payment status: (Dollars in Thousands) 30-59 Days Past Due 60-89 Days Past Due Over 90 Days Past Due Total Past Due Current Total June 30, 2016 Commercial $ $ — $ $ $ $ Commercial real estate: Construction — — — — Other — — — — Residential real estate — Consumer: Auto — — — — Other — — — — Subtotal $ $ $ $ $ $ (Dollars in Thousands) 30-59 Days Past Due 60-89 Days Past Due Over 90 Days Past Due Total Past Due Current Total December 31, 2015 Commercial $ — $ — $ — $ — $ $ Commercial real estate: Construction — — — — Other — Residential real estate — Consumer: Auto — — Other — — — — Subtotal $ $ — $ $ $ $ Troubled Debt Restructurings: The Company reported total troubled debt restructurings of $2.4 million and $2.5 million as of June 30, 2016 and December 31, 2015, respectively. The Company has no commitments to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings. Troubled debt restructurings are included in impaired loans. The modifications of the terms of these loans included reducing the interest rate, granting an interest only payment period, or extending the terms of the debt for customers experiencing financial difficulties. Of the 12 troubled debt restructurings reported at quarter end, all loans were on accrual status. The following table presents loans by class modified as troubled debt restructurings that occurred during the quarter ending June 30, 2016 and 2015. (Dollars in Thousands) (Dollars in Thousands) Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment June 30, 2016 June 30, 2015 Troubled Debt Restructurings: Commercial real estate: Other — — — $ $ Consumer $ $ — — — Total $ $ $ $ The following table presents loans by class modified as troubled debt restructurings that occurred year to date June 30, 2016 and 2015. (Dollars in Thousands) (Dollars in Thousands) Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment June 30, 2016 June 30, 2015 Troubled Debt Restructurings: Commercial real estate: Other — — — $ $ Consumer — — — Total $ $ $ $ Specific allocations of $231,000 and $243,000 were reported for troubled debt restructurings as of June 30, 2016 and June 30, 2015. One troubled debt restructuring of $3,000 was charged-off in the three and six months ending June 30, 2016. No payment defaults or charge-offs were reported for troubled debt restructurings during the three and six months ending June 30, 2015. The terms of certain other loans were modified during the six months ending June 30, 2016 and 2015 that did not meet the definition of a troubled debt restructuring. These loans modified during the six months ending June 30, 2016 have a total recorded investment of $13.1 million as of June 30, 2016. These loans modified during the six months ending June 30, 2015 have a total recorded investment of $9.5 million as of June 30, 2015. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes commercial and commercial real estate loans with an outstanding balance greater than $25 thousand and is reviewed on a monthly basis. For residential real estate and consumer loans the analysis primarily involves monitoring the past due status of these loans and at such time that these loans are past due, the Company evaluates the loans to determine if a change in risk category is warranted. The Company uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans. All loans in all loan categories are assigned risk ratings. Based on the most recent analyses performed, the risk category of loans by class of loans is as follows: Pass Special Mention Substandard Doubtful Total June 30, 2016 Commercial $ $ — $ $ — $ Commercial real estate: Construction — — — Other — Residential real estate — — Consumer: Auto — — — Other — — Total $ $ $ $ — $ Pass Special Mention Substandard Doubtful Total December 31, 2015 Commercial $ $ — $ $ — $ Commercial real estate: Construction — — — Other — Residential real estate — — Consumer: Auto — — — Other — — Total $ $ $ $ — $ |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements | |
Fair Value Measurements | Note 5 - Fair Value Measurements Fair value is the exchange price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values: Level 1 — Quoted prices in active markets for identical assets or liabilities. 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, and other inputs that are observable or can be corroborated by observable market data. Level 3 — Significant unobservable inputs that are supported by little or no market activity, reflect a company’s own assumptions about market participant assumptions of fair value, and are significant to the fair value of the assets or liabilities. In determining the appropriate levels, the Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument: Investment Securities: The fair value of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (level 1 inputs) or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (level 2 inputs). The Company does not have any Level 1 securities. Level 2 securities include certain U.S. agency bonds, collateralized mortgage and debt obligations, and certain municipal securities. The Company also has one Level 3 security. The value of this single issue trust preferred security is obtained on a quarterly basis directly from the originating broker. Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Other Real Estate Owned: Commercial and residential real estate properties classified as other real estate owned (OREO) are measured at fair value, less costs to sell. Fair values are based on recent real estate appraisals. These appraisals may use a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Appraisals for collateral-dependent impaired loans and real estate properties classified as other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by Bank management. The appraisal values for collateral-dependent impaired loans are discounted to allow for selling expenses and fees, the limited use nature of various properties, the age of the most recent appraisal, and additional discretionary discounts for location, condition, etc. The Bank annually obtains an updated current appraisal value for each OREO property to certify that the fair value has not declined. For each parcel of OREO that has declined in value, the Bank records the decline in value by a direct writedown of the asset. Assets measured at fair value on a recurring basis: Fair Value Measurements at: (Dollars in Thousands) (Dollars in Thousands) June 30, 2016 December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Securities available-for-sale U.S. government agencies and government sponsored entities $ $ Agency mortgage-backed securites-residential State and municipal Trust preferred security Corporate bonds Total investment securities $ — $ $ $ — $ $ The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30: Trust Preferred Security 2016 2015 Balance of recurring Level 3 assets at January 1 $ $ Total losses for the period: Included in other comprehensive income ) ) Balance of recurring Level 3 assets at June 30 $ $ Impaired loans which are measured for impairment using the fair value of collateral for collateral dependent loans, had a principal balance of $49,000 at June 30, 2016 with a valuation allowance of $25,000. Impaired loans which were measured for impairment using the fair value of collateral for collateral-dependent loans had a principal balance of $537,000 at December 31, 2015, with a valuation allowance of $198,000. Increases in the provision for loan losses of $25,000 and $233,000 were recognized for the six months ended June 30, 2016 and 2015, respectively, as a result of net changes in fair values on collateral dependent loans and other factors affecting the provision for loan losses. Other real estate owned, which is measured at fair value less costs to sell, had a net carrying value of $66,000 at June 30, 2016 and $100,000 at December 31, 2015. Total writedowns of other real estate owned were $0 and $23,000 in the six months ending June 30, 2016 and 2015, respectively. The following table presents quantitative and qualitative information about Level 3 fair value measurements for financial instruments measured on a non-recurring basis at June 30, 2016. June 30, 2016 Valuation Techniques Unobservable Inputs (Dollars in thousands) Range (Weighted Avg) Impaired loans: Residential RE $ Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition (50%) Other real estate owned: Residentiall RE Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition 48%-54% (51.63%) The following table presents quantitative and qualitative information about Level 3 fair value measurements for financial instruments measured on a non-recurring basis at December 31, 2015. December 31, 2015 Valuation Techniques Unobservable Inputs (Dollars in thousands) Range (Weighted Avg) Impaired loans: Commercial RE $ Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition (50.00%) Residential Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition 20%-60% (30.00%) Other real estate owned: Commercial RE Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition 8%-40% (33.65%) The carrying amount and estimated fair values of financial instruments at June 30, 2016 and December 31, 2015 were as follows: Fair Value Measurements at Carrying June 30, 2016 Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ $ $ Interest-bearing deposits in other financial institutions Available-for-sale securities Loans, net of allowance Loans held for sale Accrued interest receivable Federal Home Loan Bank stock N/A Financial Liabilities Demand and savings deposits $ $ $ Time deposits FHLB advances Other borrowings Subordinate debentures Accrued interest payable Fair Value Measurements at December 31, 2015 Carrying Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ $ $ $ $ Interest-bearing deposits in other financial institutions $ Available-for-sale securities $ Loans, net of allowance Accrued interest receivable Federal Home Loan Bank stock N/A Financial Liabilities Demand and savings deposits $ $ $ Time deposits FHLB advances Other borrowings Subordinate debentures Accrued interest payable The methods and assumptions used to estimate fair value are described as follows: (a) Cash and Cash Equivalents: The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. (b) Interest Bearing Deposits in Other Financial Institutions: Fair values are based on quoted market prices. (c) FHLB Stock: It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability. (d) Loans: Fair values of loans, excluding loans held for sale, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. The fair value of loans held for sale is estimated based upon binding contracts and quotes from first party investors resulting in a Level 2 classification. (e) Deposits: The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. The carrying amounts of variable rate certificates of deposit approximate their fair values at the reporting date resulting in a Level 2 classification. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. (f) FHLB Advances and Other Borrowings/Subordinated Debentures: The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. The fair values of the Company’s Subordinated Debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification. (g) Accrued Interest Receivable/Payable: The carrying amounts of accrued interest approximate fair value resulting in a Level 1 or Level 2 classification consistent with the asset/liability they are associated with. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share | |
Earnings Per Share | Note 6 - Earnings Per Share Basic earnings per share have been computed by dividing net income available for common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share have been computed the same as basic earnings per share, and assumes the conversion of outstanding stock options, convertible preferred stock and warrants, if dilutive. The following table reconciles the basic and diluted earnings per share computations for the three months and six months ended June 30, 2016 and 2015. Quarter ended June 30, 2016 Quarter ended June 30, 2015 Weighted Per Weighted Per Average Share Average Share Income Shares Amount Income Shares Amount Basic earnings per share: Net income $ $ Less: Dividends on preferred stock during the quarter ) Net income available to common shareholders $ $ $ $ Effect of dilutive securities Convertible preferred stock Performance share units — — — Stock options — — — Warrants — — — Diluted earnings per share Net income available to common stockholders and assumed conversions $ $ $ $ Six months ended June 30, 2016 Six months ended June 30, 2015 Weighted Weighted Average Per Share Average Per Share Income Shares Amount Income Shares Amount Basic earnings per share: Net income $ $ Less: Dividends on preferred stock during the quarter ) ) Net income available to common shareholders $ $ $ $ Effect of dilutive securities Convertible preferred stock Performance share units — — — Stock options — — — Warrants — — — Diluted earnings per share Net income available to common stockholders and assumed conversions $ $ $ $ Stock options for 29,276 shares of common stock were not considered in computing diluted earnings per common share for June 30, 2015 because they are anti-dilutive. There were no anti-dilutive stock options at June 30, 2016. |
Regulatory Capital Matters
Regulatory Capital Matters | 6 Months Ended |
Jun. 30, 2016 | |
Regulatory Capital Matters | |
Regulatory Capital Matters | Note 7 — Regulatory Capital Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, 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. Failure to meet capital requirements can initiate regulatory action. Management believes as of June 30, 2016 and December 31, 2015, the Company and Citizens First Bank, Inc. met all capital adequacy requirements to which they are subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. Under quantitative measures established by regulation to ensure capital adequacy, we are required to maintain minimum amounts and ratios of total Tier 1 capital to risk-weighted assets and to total assets. For 2016, interim Final Basel III rules require the Bank to maintain minimum amounts and ratios of common equity Tier I capital to risk-weighted assets. Under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in computing regulatory capital. The rules also established a “capital conservation buffer” of 2.5%, to be phased in through January 1, 2019, above the new regulatory minimum risk-based capital ratios. The buffer could limit the payment of dividends and discretionary bonuses to officers if a bank fails to maintain required capital levels. The Company’s and Citizens First Bank, Inc.’s actual capital amounts and ratios are also presented in the following table. June 30, 2016 (Dollars in Thousands) Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk-Weighted Assets) Consolidated $ % $ % N/A N/A Citizens First Bank, Inc. % % $ % Tier I Capital (to Risk-Weighted Assets) Consolidated % % N/A N/A Citizens First Bank, Inc. % % % Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated % % N/A N/A Citizens First Bank, Inc. % % % Tier I Leverage Capital to average assets Consolidated % % N/A N/A Citizens First Bank, Inc. % % % December 31, 2015 (Dollars in Thousands) Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk-Weighted Assets) Consolidated $ % $ % N/A N/A Citizens First Bank, Inc. % % $ % Tier I Capital (to Risk-Weighted Assets) Consolidated % % N/A N/A Citizens First Bank, Inc. % % % Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated % % N/A N/A Citizens First Bank, Inc. % % % Tier I Leverage Capital to average assets Consolidated % % N/A N/A Citizens First Bank, Inc. % % % |
Preferred Stock
Preferred Stock | 6 Months Ended |
Jun. 30, 2016 | |
Preferred Stock | |
Preferred Stock | Note 8 — Preferred Stock In 2004, the Company issued 250 shares of Cumulative Convertible Preferred Stock, stated value $31,992 per share (Cumulative Preferred Stock), for an aggregate purchase price of $7,998,000. The Cumulative Preferred Stock was sold for $31,992 per share, is entitled to quarterly cumulative dividends at an annual fixed rate of 6.5% and is convertible into shares of common stock of the Company at an initial conversion price per share of $15.50 (currently $14.06, adjusted for stock dividends) on and after three years after the date of issuance. As of June 30, 2016, 13 preferred shares have converted to 29,575 common shares. |
Nature of Operations and Summ16
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies The accounting and reporting policies of Citizens First Corporation (the “Company”) and its wholly owned subsidiary, Citizens First Bank, Inc. (the “Bank”), conform to U.S. generally accepted accounting principles and general practices within the banking industry. The consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany transactions and accounts have been eliminated in consolidation. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2015 Annual Report on Form 10-K filed with the Securities and Exchange Commission. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates used in the preparation of the financial statements are based on various factors including the current interest rate environment and the general strength of the local economy. Changes in the overall interest rate environment can significantly affect the Company’s net interest income and the value of its recorded assets and liabilities. Actual results could differ from those estimates used in the preparation of the financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in the accompanying unaudited financial statements. Those adjustments consist only of normal recurring adjustments. Results of interim periods are not necessarily indicative of results to be expected for the full year. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — In May 2014 the FASB amended existing guidance related to revenue from contracts with customers. This amendment supersedes and replaces nearly all existing revenue recognition guidance, including industry-specific guidance, establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, this amendment specifies the accounting for some costs to obtain or fulfill a contract with a customer. These amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. In March 2016, the FASB issued ASU 2016-08 that clarifies how to apply revenue recognition guidance related to whether an entity is a principal or an agent. The amendments in this update affect this guidance issued in 2014 that is not yet effective. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. In January 2016 the FASB issued ASU 2016-01 which amends existing guidance on the classification and measurement of financial instruments. This new standard revises and entity’s accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The new standard is effective for reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. In February 2016 the FASB issued ASU 2016-02 which establishes the principles to report information about the assets and liabilities that arise from leases. This new standard changes the way operating leases are account for and reflected on the lessee’s balance sheet. The new standard is intended to increase transparency and comparability by requiring lessees to recognize the financial obligation and right-of-use asset associated with operating leases that have a lease term of more than 12 months on the balance sheet. The new standard is effective for reporting periods beginning after December 15, 2018. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. In March 2016 the FASB issued ASU 2016-09 which provides guidance on share-based payment accounting. The new standard includes multiple provision intended to simplify various aspects of the accounting for share-based payments. The new standard is effective for reporting periods beginning after December 15, 2016. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduces the current expected credit loss (CECL) model and replaces the incurred loss model. The most significant impact for financial institutions will be to the allowance for loan and lease losses (ALLL). The standard allows for various expected credit loss estimation methods and is scalable. This standard is effective for reporting periods beginning after December 15, 2019. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. |
Available-For-Sale Securities (
Available-For-Sale Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Available-For-Sale Securities | |
Summary of the amortized cost and fair value of the available for sale investment securities portfolio | (Dollars in Thousands) Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value June 30, 2016 U. S. government agencies and government sponsored entities $ $ $ — $ Agency mortgage-backed securities: residential ) State and municipal ) Trust preferred security — ) Corporate bonds — ) Total Available-for-Sale Securities $ $ $ ) $ December 31, 2015 U. S. government agencies and government sponsored entities $ $ $ ) $ Agency mortgage-backed securities: residential ) State and municipal ) Trust preferred security — ) Corporate bonds — ) Total Available-for-Sale Securities $ $ $ ) $ |
Summary of the amortized cost and fair value of investment securities by contractual maturity | June 30, 2016 (Dollars in Thousands) Available-For-Sale Amortized Cost Fair Value Due in one year or less $ $ Due from one to five years Due from five to ten years Due after ten years Agency mortgage-backed: residential Total $ $ |
Summary of the investment securities with unrealized losses aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position | (Dollars in Thousands) Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2016: U.S. government agencies and government sponsored entities $ — $ — $ — $ — $ — $ — Agency mortgage-backed: residential ) — — ) State and municipal ) — — ) Trust preferred security — — ) ) Corporate Bonds ) — — ) Total temporarily impaired $ $ ) $ $ ) $ $ ) (Dollars in Thousands) Less than 12 Months 12 Months or More Total Description of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2015: U.S. government agencies and government sponsored entities $ — $ — $ $ ) $ $ ) Agency mortgage-backed: residential ) ) ) State and municipal ) ) ) Trust preferred security — — ) ) Corporate bonds ) — — ) Total temporarily impaired $ $ ) $ $ ) $ $ ) |
Loans and Allowance for Loan 18
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Loans and Allowance for Loan Losses | |
Schedule of categories of loans | (Dollars in Thousands) June 30, 2016 December 31, 2015 Commercial $ $ Commercial real estate: Construction Other Residential real estate Consumer: Auto Other Total loans Less allowance for loan losses ) ) Net loans $ $ |
Schedule of activity in the allowance for loan losses | The following table sets forth an analysis of our allowance for loan losses for the three months ending June 30, 2016 and 2015. (Dollars in Thousands) Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total June 30, 2016 Allowance for loan losses: Beginning balance $ $ $ $ $ $ Provision (credit) for loan losses ) ) ) ) Loans charged-off ) ) ) — — ) Recoveries — Total ending allowance balance $ $ $ $ $ $ (Dollars in Thousands) Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total June 30, 2015 Allowance for loan losses: Beginning balance $ $ $ $ $ $ Provision for loan losses ) ) ) Loans charged-off ) — ) ) — ) Recoveries — Total ending allowance balance $ $ $ $ $ $ The following table sets forth an analysis of our allowance for loan losses for the six months ending June 30, 2016 and 2015. (Dollars in Thousands) Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total June 30, 2016 Allowance for loan losses: Beginning balance $ $ $ $ $ $ Provision (credit) for loan losses ) ) ) ) Loans charged-off ) ) ) — — ) Recoveries — Total ending allowance balance $ $ $ $ $ $ (Dollars in Thousands) Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total June 30, 2015 Allowance for loan losses: Beginning balance $ $ $ $ $ $ Provision for loan losses ) ) ) Loans charged-off ) ) ) ) — ) Recoveries — Total ending allowance balance $ $ $ $ $ $ |
Schedule of balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method | (Dollars in Thousands) Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total June 30, 2016 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ $ $ $ $ — $ Collectively evaluated Total ending allowance balance $ $ $ $ $ $ Loans: Individually evaluated for impairment $ $ $ $ $ — $ Collectively evaluated — Total ending loans balance $ $ $ $ $ — $ (Dollars in Thousands) Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total December 31, 2015 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ $ $ $ — $ — $ Collectively evaluated Total ending allowance balance $ $ $ $ $ $ Loans: Individually evaluated for impairment $ $ $ $ $ — $ Collectively evaluated — Total ending loans balance $ $ $ $ $ — $ |
Schedule of impaired loans by class of loans | The following table presents information related to impaired loans by class of loans as of June 30, 2016 and December 31, 2015. (Dollars in Thousands) (Dollars in Thousands) June 30, 2016 December 31, 2015 Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated With no related allowance recorded: Commercial $ $ $ — $ $ $ — Commercial real estate: Other — — Residential real estate — — Consumer: Other — — — — — — Subtotal $ $ $ — $ $ $ — With an allowance recorded: Commercial $ $ $ $ $ $ Commercial real estate: Other Residential real estate Consumer: Other — Subtotal $ $ $ $ $ $ Total $ $ $ $ $ $ Information on impaired loans for the three months ending June 30, 2016 and 2015 is as follows: (Dollars in Thousands) (Dollars in Thousands) June 30, 2016 June 30, 2015 Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Commercial $ $ $ $ $ $ Commercial real estate: Construction — — — — — — Other Residential real estate Consumer: Auto — — — — — — Other — — — — Total $ $ $ $ $ $ Information on impaired loans for the six months ending June 30, 2016 and 2015 is as follows: (Dollars in Thousands) (Dollars in Thousands) June 30, 2016 June 30, 2015 Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Average Recorded Investment Interest Income Recognized Cash Basis Interest Recognized Commercial $ $ $ $ $ $ Commercial real estate: Construction — — — — — — Other Residential real estate Consumer: Auto — — — — — — Other — — Total $ $ $ $ $ $ |
Schedule of recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans | (Dollars in Thousands) (Dollars in Thousands) June 30, 2016 December 31, 2015 Loans Past Due Over 90 Days and Still Accruing Nonaccrual Loans Past Due Over 90 Days and Still Accruing Nonaccrual Commercial $ $ — $ — $ — Commercial real estate: Construction — — — — Other — — — Residential real estate — — Consumer: Auto — — — — Other — — — — Total $ $ $ — $ |
Schedule of aging of the recorded investment in past due loans by class of loans | (Dollars in Thousands) 30-59 Days Past Due 60-89 Days Past Due Over 90 Days Past Due Total Past Due Current Total June 30, 2016 Commercial $ $ — $ $ $ $ Commercial real estate: Construction — — — — Other — — — — Residential real estate — Consumer: Auto — — — — Other — — — — Subtotal $ $ $ $ $ $ (Dollars in Thousands) 30-59 Days Past Due 60-89 Days Past Due Over 90 Days Past Due Total Past Due Current Total December 31, 2015 Commercial $ — $ — $ — $ — $ $ Commercial real estate: Construction — — — — Other — Residential real estate — Consumer: Auto — — Other — — — — Subtotal $ $ — $ $ $ $ |
Schedule of loans by class modified as troubled debt restructurings | The following table presents loans by class modified as troubled debt restructurings that occurred during the quarter ending June 30, 2016 and 2015. (Dollars in Thousands) (Dollars in Thousands) Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment June 30, 2016 June 30, 2015 Troubled Debt Restructurings: Commercial real estate: Other — — — $ $ Consumer $ $ — — — Total $ $ $ $ The following table presents loans by class modified as troubled debt restructurings that occurred year to date June 30, 2016 and 2015. (Dollars in Thousands) (Dollars in Thousands) Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Number of Loans Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment June 30, 2016 June 30, 2015 Troubled Debt Restructurings: Commercial real estate: Other — — — $ $ Consumer — — — Total $ $ $ $ |
Schedule of risk category of loans by class of loans based on the most recent analyses performed | Pass Special Mention Substandard Doubtful Total June 30, 2016 Commercial $ $ — $ $ — $ Commercial real estate: Construction — — — Other — Residential real estate — — Consumer: Auto — — — Other — — Total $ $ $ $ — $ Pass Special Mention Substandard Doubtful Total December 31, 2015 Commercial $ $ — $ $ — $ Commercial real estate: Construction — — — Other — Residential real estate — — Consumer: Auto — — — Other — — Total $ $ $ $ — $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Measurements | |
Schedule of assets measured at fair value on a recurring basis | Fair Value Measurements at: (Dollars in Thousands) (Dollars in Thousands) June 30, 2016 December 31, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Securities available-for-sale U.S. government agencies and government sponsored entities $ $ Agency mortgage-backed securites-residential State and municipal Trust preferred security Corporate bonds Total investment securities $ — $ $ $ — $ $ |
Schedule of reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Trust Preferred Security 2016 2015 Balance of recurring Level 3 assets at January 1 $ $ Total losses for the period: Included in other comprehensive income ) ) Balance of recurring Level 3 assets at June 30 $ $ |
Schedule of quantitative and qualitative information about Level 3 fair value measurements for financial instruments measured on a non-recurring basis | June 30, 2016 Valuation Techniques Unobservable Inputs (Dollars in thousands) Range (Weighted Avg) Impaired loans: Residential RE $ Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition (50%) Other real estate owned: Residentiall RE Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition 48%-54% (51.63%) December 31, 2015 Valuation Techniques Unobservable Inputs (Dollars in thousands) Range (Weighted Avg) Impaired loans: Commercial RE $ Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition (50.00%) Residential Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition 20%-60% (30.00%) Other real estate owned: Commercial RE Sales Comparison Adjustments for limited use nature of certain properties, age of appraisal, location, and/or condition 8%-40% (33.65%) |
Schedule of carrying amount and estimated fair values of financial instruments | Fair Value Measurements at Carrying June 30, 2016 Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ $ $ Interest-bearing deposits in other financial institutions Available-for-sale securities Loans, net of allowance Loans held for sale Accrued interest receivable Federal Home Loan Bank stock N/A Financial Liabilities Demand and savings deposits $ $ $ Time deposits FHLB advances Other borrowings Subordinate debentures Accrued interest payable Fair Value Measurements at December 31, 2015 Carrying Amount Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents $ $ $ $ $ Interest-bearing deposits in other financial institutions $ Available-for-sale securities $ Loans, net of allowance Accrued interest receivable Federal Home Loan Bank stock N/A Financial Liabilities Demand and savings deposits $ $ $ Time deposits FHLB advances Other borrowings Subordinate debentures Accrued interest payable |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share | |
Schedule of reconciliation of basic and diluted earnings per share computations | Quarter ended June 30, 2016 Quarter ended June 30, 2015 Weighted Per Weighted Per Average Share Average Share Income Shares Amount Income Shares Amount Basic earnings per share: Net income $ $ Less: Dividends on preferred stock during the quarter ) Net income available to common shareholders $ $ $ $ Effect of dilutive securities Convertible preferred stock Performance share units — — — Stock options — — — Warrants — — — Diluted earnings per share Net income available to common stockholders and assumed conversions $ $ $ $ Six months ended June 30, 2016 Six months ended June 30, 2015 Weighted Weighted Average Per Share Average Per Share Income Shares Amount Income Shares Amount Basic earnings per share: Net income $ $ Less: Dividends on preferred stock during the quarter ) ) Net income available to common shareholders $ $ $ $ Effect of dilutive securities Convertible preferred stock Performance share units — — — Stock options — — — Warrants — — — Diluted earnings per share Net income available to common stockholders and assumed conversions $ $ $ $ |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Regulatory Capital Matters | |
Schedule of the Company's and the Bank's actual capital amounts and ratios | June 30, 2016 (Dollars in Thousands) Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk-Weighted Assets) Consolidated $ % $ % N/A N/A Citizens First Bank, Inc. % % $ % Tier I Capital (to Risk-Weighted Assets) Consolidated % % N/A N/A Citizens First Bank, Inc. % % % Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated % % N/A N/A Citizens First Bank, Inc. % % % Tier I Leverage Capital to average assets Consolidated % % N/A N/A Citizens First Bank, Inc. % % % December 31, 2015 (Dollars in Thousands) Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Total Capital (to Risk-Weighted Assets) Consolidated $ % $ % N/A N/A Citizens First Bank, Inc. % % $ % Tier I Capital (to Risk-Weighted Assets) Consolidated % % N/A N/A Citizens First Bank, Inc. % % % Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated % % N/A N/A Citizens First Bank, Inc. % % % Tier I Leverage Capital to average assets Consolidated % % N/A N/A Citizens First Bank, Inc. % % % |
Available-For-Sale Securities -
Available-For-Sale Securities - Amortized Cost and Fair Value with Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | $ 57,862 | $ 59,965 |
Gross Unrealized Gains | 1,325 | 877 |
Gross Unrealized Losses | (646) | (642) |
Fair Value | 58,541 | 60,200 |
U. S. government agencies and government sponsored entities | ||
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | 2,998 | 2,998 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | (7) | |
Fair Value | 3,000 | 2,994 |
Agency mortgage-backed securities: residential | ||
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | 28,250 | 29,446 |
Gross Unrealized Gains | 549 | 259 |
Gross Unrealized Losses | (16) | (48) |
Fair Value | 28,783 | 29,657 |
State and municipal | ||
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | 23,732 | 24,641 |
Gross Unrealized Gains | 774 | 615 |
Gross Unrealized Losses | (2) | (34) |
Fair Value | 24,504 | 25,222 |
Trust preferred security | ||
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | 1,882 | 1,880 |
Gross Unrealized Losses | (622) | (540) |
Fair Value | 1,260 | 1,340 |
Corporate bonds | ||
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | 1,000 | 1,000 |
Gross Unrealized Losses | (6) | (13) |
Fair Value | $ 994 | $ 987 |
Available-For-Sale Securities23
Available-For-Sale Securities - Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Amortized Cost | ||
Due in one year or less | $ 1,532 | |
Due from one to five years | 12,375 | |
Due from five to ten years | 11,219 | |
Due after ten years | 4,486 | |
Agency mortgage-backed: residential | 28,250 | |
Total | 57,862 | |
Fair Value | ||
Due in one year or less | 1,543 | |
Due from one to five years | 12,582 | |
Due from five to ten years | 11,616 | |
Due after ten years | 4,017 | |
Agency mortgage-backed: residential | 28,783 | |
Fair Value | $ 58,541 | $ 60,200 |
Available-For-Sale Securities24
Available-For-Sale Securities - Investment Securities with Unrealized Losses by Investment Category (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($)item | Dec. 31, 2015USD ($) | |
Investment holdings | ||
Fair Value, Less than 12 Months | $ 4,413 | $ 11,793 |
Unrealized Losses, Less than 12 Months | (24) | (57) |
Fair Value, 12 Months or More | 1,260 | 4,424 |
Unrealized Losses, 12 Months or More | (622) | (585) |
Fair Value, Total | 5,673 | 16,217 |
Unrealized Losses, Total | $ (646) | (642) |
Number of adverse conditions identified, related to repayment of securities that are not rated | item | 0 | |
Impairment charge on available for sale securities | $ 0 | |
Loss of principal anticipated | 0 | |
Loss of interest anticipated | 0 | |
U. S. government agencies and government sponsored entities | ||
Investment holdings | ||
Fair Value, 12 Months or More | 992 | |
Unrealized Losses, 12 Months or More | (7) | |
Fair Value, Total | 992 | |
Unrealized Losses, Total | (7) | |
Agency mortgage-backed securities: residential | ||
Investment holdings | ||
Fair Value, Less than 12 Months | 1,951 | 7,009 |
Unrealized Losses, Less than 12 Months | (16) | (25) |
Fair Value, 12 Months or More | 1,475 | |
Unrealized Losses, 12 Months or More | (23) | |
Fair Value, Total | 1,951 | 8,484 |
Unrealized Losses, Total | (16) | (48) |
State and municipal | ||
Investment holdings | ||
Fair Value, Less than 12 Months | 1,468 | 3,797 |
Unrealized Losses, Less than 12 Months | (2) | (19) |
Fair Value, 12 Months or More | 617 | |
Unrealized Losses, 12 Months or More | (15) | |
Fair Value, Total | 1,468 | 4,414 |
Unrealized Losses, Total | (2) | (34) |
Trust preferred security | ||
Investment holdings | ||
Fair Value, 12 Months or More | 1,260 | 1,340 |
Unrealized Losses, 12 Months or More | (622) | (540) |
Fair Value, Total | 1,260 | 1,340 |
Unrealized Losses, Total | (622) | (540) |
Corporate bonds | ||
Investment holdings | ||
Fair Value, Less than 12 Months | 994 | 987 |
Unrealized Losses, Less than 12 Months | (6) | (13) |
Fair Value, Total | 994 | 987 |
Unrealized Losses, Total | $ (6) | $ (13) |
Loans and Allowance for Loan 25
Loans and Allowance for Loan Losses - Loans By Category (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Categories of loans | ||||||
Total loans | $ 347,013 | $ 330,782 | ||||
Less Allowance for loan losses | (4,949) | $ (5,044) | (4,916) | $ (4,983) | $ (4,947) | $ (4,885) |
Net Loans | 342,064 | 325,866 | ||||
Commercial | ||||||
Categories of loans | ||||||
Total loans | 55,132 | 53,516 | ||||
Less Allowance for loan losses | (464) | (745) | (812) | (757) | (1,035) | (1,029) |
Commercial Real Estate | ||||||
Categories of loans | ||||||
Total loans | 206,848 | 193,457 | ||||
Less Allowance for loan losses | (3,815) | (3,585) | (3,431) | (3,605) | (3,206) | (3,088) |
Residential Real Estate | ||||||
Categories of loans | ||||||
Total loans | 81,306 | 79,680 | ||||
Less Allowance for loan losses | (600) | (602) | (524) | (447) | (519) | (582) |
Consumer | ||||||
Categories of loans | ||||||
Total loans | 3,727 | 4,129 | ||||
Less Allowance for loan losses | (22) | (24) | (28) | (38) | (41) | (45) |
Unallocated | ||||||
Categories of loans | ||||||
Less Allowance for loan losses | (48) | $ (88) | (121) | $ (136) | $ (146) | $ (141) |
Commercial | Commercial | ||||||
Categories of loans | ||||||
Total loans | 55,132 | 53,516 | ||||
Real estate | Residential Real Estate | ||||||
Categories of loans | ||||||
Total loans | 81,306 | 79,680 | ||||
Construction | Commercial Real Estate | ||||||
Categories of loans | ||||||
Total loans | 28,511 | 24,167 | ||||
Auto | Consumer | ||||||
Categories of loans | ||||||
Total loans | 1,242 | 1,425 | ||||
Other | Commercial Real Estate | ||||||
Categories of loans | ||||||
Total loans | 178,337 | 169,290 | ||||
Other | Consumer | ||||||
Categories of loans | ||||||
Total loans | $ 2,485 | $ 2,704 |
Loans and Allowance for Loan 26
Loans and Allowance for Loan Losses - Allowance Roll-forward and Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | |
Allowance for loan losses: | ||||||
Beginning Balance | $ 5,044 | $ 4,947 | $ 4,916 | $ 4,885 | ||
Provision (credit) for loan losses | (85) | 120 | (85) | 200 | ||
Loans charged-off | (72) | (123) | (80) | (167) | ||
Recoveries | 62 | 39 | 199 | 65 | ||
Total ending allowance balance | 4,949 | 4,983 | 4,949 | 4,983 | ||
Accrued interest receivable | $ 1,536 | $ 1,680 | ||||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 256 | 433 | ||||
Collectively evaluated | 4,693 | 4,483 | ||||
Total ending allowance balance | 5,044 | 4,947 | 4,916 | 4,885 | 4,949 | 4,916 |
Loans: | ||||||
Individually evaluated for impairment | 2,485 | 3,027 | ||||
Collectively evaluated | 344,528 | 327,755 | ||||
Loans and Leases Receivable, Gross, Total | 347,013 | 330,782 | ||||
Loans Receivable | ||||||
Allowance for loan losses: | ||||||
Accrued interest receivable | 1,200 | 1,300 | ||||
Commercial | ||||||
Allowance for loan losses: | ||||||
Beginning Balance | 745 | 1,035 | 812 | 1,029 | ||
Provision (credit) for loan losses | (301) | (233) | (475) | (248) | ||
Loans charged-off | (5) | (75) | (5) | (75) | ||
Recoveries | 25 | 30 | 132 | 51 | ||
Total ending allowance balance | 464 | 757 | 464 | 757 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 35 | 36 | ||||
Collectively evaluated | 429 | 776 | ||||
Total ending allowance balance | 745 | 1,035 | 812 | 1,029 | 464 | 812 |
Loans: | ||||||
Individually evaluated for impairment | 133 | 145 | ||||
Collectively evaluated | 54,999 | 53,371 | ||||
Loans and Leases Receivable, Gross, Total | 55,132 | 53,516 | ||||
Commercial Real Estate | ||||||
Allowance for loan losses: | ||||||
Beginning Balance | 3,585 | 3,206 | 3,431 | 3,088 | ||
Provision (credit) for loan losses | 257 | 398 | 386 | 533 | ||
Loans charged-off | (52) | (52) | (17) | |||
Recoveries | 25 | 1 | 50 | 1 | ||
Total ending allowance balance | 3,815 | 3,605 | 3,815 | 3,605 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 195 | 377 | ||||
Collectively evaluated | 3,620 | 3,054 | ||||
Total ending allowance balance | 3,585 | 3,206 | 3,431 | 3,088 | 3,815 | 3,431 |
Loans: | ||||||
Individually evaluated for impairment | 1,580 | 2,066 | ||||
Collectively evaluated | 205,268 | 191,391 | ||||
Loans and Leases Receivable, Gross, Total | 206,848 | 193,457 | ||||
Residential Real Estate | ||||||
Allowance for loan losses: | ||||||
Beginning Balance | 602 | 519 | 524 | 582 | ||
Provision (credit) for loan losses | 4 | (43) | 86 | (86) | ||
Loans charged-off | (15) | (32) | (23) | (56) | ||
Recoveries | 9 | 3 | 13 | 7 | ||
Total ending allowance balance | 600 | 447 | 600 | 447 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 25 | 20 | ||||
Collectively evaluated | 575 | 504 | ||||
Total ending allowance balance | 602 | 519 | 524 | 582 | 600 | 524 |
Loans: | ||||||
Individually evaluated for impairment | 744 | 807 | ||||
Collectively evaluated | 80,562 | 78,873 | ||||
Loans and Leases Receivable, Gross, Total | 81,306 | 79,680 | ||||
Consumer | ||||||
Allowance for loan losses: | ||||||
Beginning Balance | 24 | 41 | 28 | 45 | ||
Provision (credit) for loan losses | (5) | 8 | (10) | 6 | ||
Loans charged-off | (16) | (19) | ||||
Recoveries | 3 | 5 | 4 | 6 | ||
Total ending allowance balance | 22 | 38 | 22 | 38 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||||
Individually evaluated for impairment | 1 | |||||
Collectively evaluated | 21 | 28 | ||||
Total ending allowance balance | 24 | 41 | 28 | 45 | 22 | 28 |
Loans: | ||||||
Individually evaluated for impairment | 28 | 9 | ||||
Collectively evaluated | 3,699 | 4,120 | ||||
Loans and Leases Receivable, Gross, Total | 3,727 | 4,129 | ||||
Unallocated | ||||||
Allowance for loan losses: | ||||||
Beginning Balance | 88 | 146 | 121 | 141 | ||
Provision (credit) for loan losses | (40) | (10) | (73) | (5) | ||
Total ending allowance balance | 48 | 136 | 48 | 136 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||||
Collectively evaluated | 48 | 121 | ||||
Total ending allowance balance | $ 88 | $ 146 | $ 121 | $ 141 | $ 48 | $ 121 |
Loans and Allowance for Loan 27
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Unpaid Principal Balance | |||||
With no related allowance recorded | $ 1,361 | $ 1,361 | $ 1,404 | ||
With an allowance recorded | 1,124 | 1,124 | 1,623 | ||
Total | 2,485 | 2,485 | 3,027 | ||
Recorded Investment | |||||
With no related allowance recorded | 1,361 | 1,361 | 1,404 | ||
With an allowance recorded | 1,124 | 1,124 | 1,623 | ||
Total | 2,485 | 2,485 | 3,027 | ||
Allowance for Loan Losses Allocated | |||||
Total | 256 | 256 | 433 | ||
Average Recorded Investment | |||||
Total | 2,491 | $ 4,834 | 2,510 | $ 4,924 | |
Interest Income Recognized | |||||
Total | 32 | 53 | 64 | 105 | |
Cash Basis Interest Recognized | |||||
Total | 32 | 44 | 63 | 95 | |
Commercial | Commercial | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 58 | 58 | 61 | ||
With an allowance recorded | 75 | 75 | 84 | ||
Recorded Investment | |||||
With no related allowance recorded | 58 | 58 | 61 | ||
With an allowance recorded | 75 | 75 | 84 | ||
Allowance for Loan Losses Allocated | |||||
Total | 35 | 35 | 36 | ||
Average Recorded Investment | |||||
Total | 135 | 1,893 | 139 | 1,972 | |
Interest Income Recognized | |||||
Total | 3 | 24 | 6 | 49 | |
Cash Basis Interest Recognized | |||||
Total | 3 | 22 | 6 | 45 | |
Real estate | Residential Real Estate | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 692 | 692 | 700 | ||
With an allowance recorded | 52 | 52 | 107 | ||
Recorded Investment | |||||
With no related allowance recorded | 692 | 692 | 700 | ||
With an allowance recorded | 52 | 52 | 107 | ||
Allowance for Loan Losses Allocated | |||||
Total | 25 | 25 | 20 | ||
Average Recorded Investment | |||||
Total | 747 | 1,014 | 749 | 1,019 | |
Interest Income Recognized | |||||
Total | 8 | 12 | 16 | 25 | |
Cash Basis Interest Recognized | |||||
Total | 8 | 9 | 15 | 18 | |
Other | Commercial Real Estate | |||||
Unpaid Principal Balance | |||||
With no related allowance recorded | 611 | 611 | 643 | ||
With an allowance recorded | 969 | 969 | 1,423 | ||
Recorded Investment | |||||
With no related allowance recorded | 611 | 611 | 643 | ||
With an allowance recorded | 969 | 969 | 1,423 | ||
Allowance for Loan Losses Allocated | |||||
Total | 195 | 195 | 377 | ||
Average Recorded Investment | |||||
Total | 1,584 | 1,916 | 1,604 | 1,922 | |
Interest Income Recognized | |||||
Total | 21 | 17 | 41 | 31 | |
Cash Basis Interest Recognized | |||||
Total | 21 | 13 | 41 | 32 | |
Other | Consumer | |||||
Unpaid Principal Balance | |||||
With an allowance recorded | 28 | 28 | |||
Recorded Investment | |||||
With an allowance recorded | 28 | 28 | $ 9 | ||
Allowance for Loan Losses Allocated | |||||
Total | 1 | 1 | |||
Average Recorded Investment | |||||
Total | $ 25 | $ 11 | 18 | $ 11 | |
Interest Income Recognized | |||||
Total | 1 | ||||
Cash Basis Interest Recognized | |||||
Total | $ 1 |
Loans and Allowance for Loan 28
Loans and Allowance for Loan Losses - Investment in Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Recorded investment in nonaccrual and loans past due over 90 days | ||
Loans Past Due Over 90 Days and Still Accruing | $ 150 | |
Nonaccrual | 49 | $ 537 |
Residential Real Estate | ||
Recorded investment in nonaccrual and loans past due over 90 days | ||
Nonaccrual | 49 | 98 |
Commercial | Commercial | ||
Recorded investment in nonaccrual and loans past due over 90 days | ||
Loans Past Due Over 90 Days and Still Accruing | $ 150 | |
Other | Commercial Real Estate | ||
Recorded investment in nonaccrual and loans past due over 90 days | ||
Nonaccrual | $ 439 |
Loans and Allowance for Loan 29
Loans and Allowance for Loan Losses - Aging of Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Aging of the recorded investment in past due loans | ||
Total Past Due | $ 301 | $ 1,045 |
Current | 346,712 | 329,737 |
Loans and Leases Receivable, Gross, Total | 347,013 | 330,782 |
Commercial | ||
Aging of the recorded investment in past due loans | ||
Loans and Leases Receivable, Gross, Total | 55,132 | 53,516 |
Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Loans and Leases Receivable, Gross, Total | 206,848 | 193,457 |
Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Loans and Leases Receivable, Gross, Total | 81,306 | 79,680 |
Consumer | ||
Aging of the recorded investment in past due loans | ||
Loans and Leases Receivable, Gross, Total | 3,727 | 4,129 |
Commercial | Commercial | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 238 | |
Current | 54,894 | 53,516 |
Loans and Leases Receivable, Gross, Total | 55,132 | 53,516 |
Real estate | Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 63 | 427 |
Current | 81,243 | 79,253 |
Loans and Leases Receivable, Gross, Total | 81,306 | 79,680 |
Construction | Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Current | 28,511 | 24,167 |
Loans and Leases Receivable, Gross, Total | 28,511 | 24,167 |
Auto | Consumer | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 1 | |
Current | 1,242 | 1,424 |
Loans and Leases Receivable, Gross, Total | 1,242 | 1,425 |
Other | Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 617 | |
Current | 178,337 | 168,673 |
Loans and Leases Receivable, Gross, Total | 178,337 | 169,290 |
Other | Consumer | ||
Aging of the recorded investment in past due loans | ||
Current | 2,485 | 2,704 |
Loans and Leases Receivable, Gross, Total | 2,485 | 2,704 |
30 to 59 Days Past Due | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 88 | 508 |
30 to 59 Days Past Due | Commercial | Commercial | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 88 | |
30 to 59 Days Past Due | Real estate | Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 329 | |
30 to 59 Days Past Due | Auto | Consumer | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 1 | |
30 to 59 Days Past Due | Other | Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 178 | |
60 to 89 Days Past Due | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 14 | |
60 to 89 Days Past Due | Real estate | Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 14 | |
Over 90 Days Past Due | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 199 | 537 |
Over 90 Days Past Due | Commercial | Commercial | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 150 | |
Over 90 Days Past Due | Real estate | Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | $ 49 | 98 |
Over 90 Days Past Due | Other | Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | $ 439 |
Loans and Allowance for Loan 30
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($)loanitem | Jun. 30, 2015USD ($)loanitem | Jun. 30, 2016USD ($)loanitem | Jun. 30, 2015USD ($)loanitem | Dec. 31, 2015USD ($) | |
Troubled Debt Restructurings | |||||
Total troubled debt restructurings | $ 2,400,000 | $ 2,400,000 | $ 2,500,000 | ||
Commitments to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings | $ 0 | $ 0 | |||
Number of loans reported as troubled debt restructurings | item | 12 | 12 | |||
Number of Loans | loan | 1 | 2 | 2 | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 7,000 | $ 1,547,000 | $ 7,000 | $ 1,547,000 | |
Post-Modification Outstanding Recorded Investment | 7,000 | 1,547,000 | 7,000 | 1,547,000 | |
Pre-Modification Outstanding Recorded Investment | 21,000 | 1,547,000 | |||
Post-Modification Outstanding Recorded Investment | 21,000 | 1,547,000 | |||
Specific allocations reported for the troubled debt restructurings | 231,000 | $ 243,000 | 231,000 | $ 243,000 | |
Number of payment defaults reported for troubled debt restructurings | item | 0 | 0 | |||
Troubled debt restructurings charged off | 3,000,000 | 3,000,000 | |||
Total recorded investment for loans modified (other than through troubled debt restructuring) | $ 13,100,000 | $ 9,500,000 | $ 13,100,000 | $ 9,500,000 | |
Number of reported charge-offs for troubled debt restructurings | 1 | 0 | 1 | 0 | |
Commercial Real Estate Other Portfolio Segment | |||||
Troubled Debt Restructurings | |||||
Number of Loans | loan | 2 | 2 | |||
Pre-Modification Outstanding Recorded Investment | $ 1,547,000 | $ 1,547,000 | |||
Post-Modification Outstanding Recorded Investment | $ 1,547,000 | 1,547,000 | |||
Pre-Modification Outstanding Recorded Investment | 1,547,000 | ||||
Post-Modification Outstanding Recorded Investment | $ 1,547,000 | ||||
Commercial Real Estate Consumer Portfolio Segment | |||||
Troubled Debt Restructurings | |||||
Number of Loans | loan | 1 | 2 | |||
Pre-Modification Outstanding Recorded Investment | $ 7,000 | $ 7,000 | |||
Post-Modification Outstanding Recorded Investment | $ 7,000 | 7,000 | |||
Pre-Modification Outstanding Recorded Investment | 21,000 | ||||
Post-Modification Outstanding Recorded Investment | $ 21,000 |
Loans and Allowance for Loan 31
Loans and Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Credit Quality Indicators | ||
Minimum outstanding balance of loans to be reviewed on a monthly basis | $ 25 | |
Total loans | 347,013 | $ 330,782 |
Pass | ||
Credit Quality Indicators | ||
Total loans | 339,898 | 320,467 |
Special Mention | ||
Credit Quality Indicators | ||
Total loans | 763 | 5,753 |
Substandard | ||
Credit Quality Indicators | ||
Total loans | 6,352 | 4,562 |
Commercial | Commercial | ||
Credit Quality Indicators | ||
Total loans | 55,132 | 53,516 |
Commercial | Commercial | Pass | ||
Credit Quality Indicators | ||
Total loans | 55,053 | 53,316 |
Commercial | Commercial | Substandard | ||
Credit Quality Indicators | ||
Total loans | 79 | 200 |
Real estate | Residential Real Estate | ||
Credit Quality Indicators | ||
Total loans | 81,306 | 79,680 |
Real estate | Residential Real Estate | Pass | ||
Credit Quality Indicators | ||
Total loans | 80,788 | 79,033 |
Real estate | Residential Real Estate | Substandard | ||
Credit Quality Indicators | ||
Total loans | 518 | 647 |
Construction | Commercial Real Estate | ||
Credit Quality Indicators | ||
Total loans | 28,511 | 24,167 |
Construction | Commercial Real Estate | Pass | ||
Credit Quality Indicators | ||
Total loans | 28,511 | 24,167 |
Auto | Consumer | ||
Credit Quality Indicators | ||
Total loans | 1,242 | 1,425 |
Auto | Consumer | Pass | ||
Credit Quality Indicators | ||
Total loans | 1,242 | 1,425 |
Other | Commercial Real Estate | ||
Credit Quality Indicators | ||
Total loans | 178,337 | 169,290 |
Other | Commercial Real Estate | Pass | ||
Credit Quality Indicators | ||
Total loans | 171,830 | 159,829 |
Other | Commercial Real Estate | Special Mention | ||
Credit Quality Indicators | ||
Total loans | 763 | 5,753 |
Other | Commercial Real Estate | Substandard | ||
Credit Quality Indicators | ||
Total loans | 5,744 | 3,708 |
Other | Consumer | ||
Credit Quality Indicators | ||
Total loans | 2,485 | 2,704 |
Other | Consumer | Pass | ||
Credit Quality Indicators | ||
Total loans | 2,474 | 2,697 |
Other | Consumer | Substandard | ||
Credit Quality Indicators | ||
Total loans | $ 11 | $ 7 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured on a Recurring and Nonrecurring Basis(Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Assets: | |||
Securities available-for-sale | $ 58,541,000 | $ 60,200,000 | |
Unrealized Losses, Less than 12 Months | (24,000) | (57,000) | |
Other real estate owned | 66,000 | 100,000 | |
Fair value, assets measured on recurring basis, unobservable input reconciliation | |||
Principal balance of impaired loans | 49,000 | 537,000 | |
Valuation allowance | 25,000 | 198,000 | |
Increase in the provision for loan losses | 25,000 | $ 233,000 | |
Other real estate owned, net carrying value | 66,000 | 100,000 | |
Write-downs of other real estate owned | 0 | 23,000 | |
U. S. government agencies and government sponsored entities | |||
Assets: | |||
Securities available-for-sale | 3,000,000 | 2,994,000 | |
Agency mortgage-backed securities: residential | |||
Assets: | |||
Securities available-for-sale | 28,783,000 | 29,657,000 | |
Unrealized Losses, Less than 12 Months | (16,000) | (25,000) | |
State and municipal | |||
Assets: | |||
Securities available-for-sale | 24,504,000 | 25,222,000 | |
Unrealized Losses, Less than 12 Months | (2,000) | (19,000) | |
Trust preferred security | |||
Assets: | |||
Securities available-for-sale | 1,260,000 | 1,340,000 | |
Corporate bonds | |||
Assets: | |||
Securities available-for-sale | 994,000 | 987,000 | |
Unrealized Losses, Less than 12 Months | (6,000) | (13,000) | |
Level 2 | |||
Assets: | |||
Securities available-for-sale | 57,281,000 | 58,860,000 | |
Level 3 | |||
Assets: | |||
Securities available-for-sale | 1,260,000 | 1,340,000 | |
Recurring basis | Level 2 | |||
Assets: | |||
Securities available-for-sale | 57,281,000 | 58,860,000 | |
Recurring basis | Level 2 | U. S. government agencies and government sponsored entities | |||
Assets: | |||
Securities available-for-sale | 3,000,000 | 2,994,000 | |
Recurring basis | Level 2 | Agency mortgage-backed securities: residential | |||
Assets: | |||
Securities available-for-sale | 28,783,000 | 29,657,000 | |
Recurring basis | Level 2 | State and municipal | |||
Assets: | |||
Securities available-for-sale | 24,504,000 | 25,222,000 | |
Recurring basis | Level 2 | Corporate bonds | |||
Assets: | |||
Securities available-for-sale | 994,000 | 987,000 | |
Recurring basis | Level 3 | |||
Assets: | |||
Securities available-for-sale | 1,260,000 | 1,340,000 | |
Recurring basis | Level 3 | Trust preferred security | |||
Assets: | |||
Securities available-for-sale | 1,260,000 | $ 1,340,000 | |
Fair value, assets measured on recurring basis, unobservable input reconciliation | |||
Recurring Level 3 assets, beginning of period balance | 1,340,000 | 1,480,000 | |
Losses for the period included in other comprehensive income | (80,000) | (30,000) | |
Recurring Level 3 assets, end of period balance | $ 1,260,000 | $ 1,450,000 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative and Qualitative Information of Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Valuation techniques | ||
Impaired loans | $ 2,485 | $ 3,027 |
Other real estate owned | 66 | 100 |
Real estate | Level 3 | Commercial Real Estate | Sales Comparison | ||
Valuation techniques | ||
Impaired loans | $ 260 | |
Real estate | Level 3 | Commercial Real Estate | Sales Comparison | Weighted Average | ||
Valuation techniques | ||
Range (as a percent) | 50.00% | |
Real estate | Level 3 | Residential Real Estate | Sales Comparison | ||
Valuation techniques | ||
Impaired loans | $ 24 | $ 79 |
Real estate | Level 3 | Residential Real Estate | Sales Comparison | Minimum | ||
Valuation techniques | ||
Range (as a percent) | 20.00% | |
Real estate | Level 3 | Residential Real Estate | Sales Comparison | Maximum | ||
Valuation techniques | ||
Range (as a percent) | 60.00% | |
Real estate | Level 3 | Residential Real Estate | Sales Comparison | Weighted Average | ||
Valuation techniques | ||
Range (as a percent) | 50.00% | 30.00% |
Other real estate owned: Commercial RE | Level 3 | Commercial Real Estate | Sales Comparison | ||
Valuation techniques | ||
Other real estate owned | $ 100 | |
Other real estate owned: Commercial RE | Level 3 | Commercial Real Estate | Sales Comparison | Minimum | ||
Valuation techniques | ||
Range (as a percent) | 8.00% | |
Other real estate owned: Commercial RE | Level 3 | Commercial Real Estate | Sales Comparison | Maximum | ||
Valuation techniques | ||
Range (as a percent) | 40.00% | |
Other real estate owned: Commercial RE | Level 3 | Commercial Real Estate | Sales Comparison | Weighted Average | ||
Valuation techniques | ||
Range (as a percent) | 33.65% | |
Other real estate owned: Residential RE | Level 3 | Residential Real Estate | Sales Comparison | ||
Valuation techniques | ||
Other real estate owned | $ 66 | |
Other real estate owned: Residential RE | Level 3 | Residential Real Estate | Sales Comparison | Minimum | ||
Valuation techniques | ||
Range (as a percent) | 48.00% | |
Other real estate owned: Residential RE | Level 3 | Residential Real Estate | Sales Comparison | Maximum | ||
Valuation techniques | ||
Range (as a percent) | 54.00% | |
Other real estate owned: Residential RE | Level 3 | Residential Real Estate | Sales Comparison | Weighted Average | ||
Valuation techniques | ||
Range (as a percent) | 51.63% |
Fair Value Measurments - Carryi
Fair Value Measurments - Carrying Amount and Estimated Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financial Assets | ||
Interest-bearing deposits in other financial institutions | $ 2,728 | $ 2,728 |
Available-for-sale securities | 58,541 | 60,200 |
Loans, net of allowance | 342,064 | 325,866 |
Accrued interest receivable | 1,536 | 1,680 |
Federal Home Loan Bank stock | 2,025 | 2,025 |
Financial Liabilities | ||
Subordinated debentures | 5,000 | 5,000 |
Accrued interest payable | 223 | 213 |
Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 7,354 | 15,255 |
Interest-bearing deposits in other financial institutions | 2,761 | 2,728 |
Accrued interest receivable | 18 | |
Financial Liabilities | ||
Demand and savings deposits | 213,574 | 216,857 |
Accrued interest payable | 11 | 9 |
Level 2 | ||
Financial Assets | ||
Available-for-sale securities | 57,281 | 58,860 |
Loans held for sale | 121 | |
Accrued interest receivable | 300 | 337 |
Financial Liabilities | ||
Time deposits | 140,196 | 153,801 |
FHLB advances | 35,023 | 12,902 |
Other borrowings | 1,000 | 2,000 |
Accrued interest payable | 182 | 177 |
Level 3 | ||
Financial Assets | ||
Available-for-sale securities | 1,260 | 1,340 |
Loans, net of allowance | 343,856 | 326,886 |
Accrued interest receivable | 1,218 | 1,343 |
Financial Liabilities | ||
Subordinated debentures | 2,434 | 2,434 |
Accrued interest payable | 30 | 27 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 7,354 | 15,255 |
Interest-bearing deposits in other financial institutions | 2,728 | 2,728 |
Available-for-sale securities | 57,862 | 59,965 |
Loans, net of allowance | 342,064 | 325,866 |
Loans held for sale | 118 | |
Accrued interest receivable | 1,536 | 1,680 |
Federal Home Loan Bank stock | 2,025 | 2,025 |
Financial Liabilities | ||
Demand and savings deposits | 213,574 | 216,857 |
Time deposits | 139,859 | 153,531 |
FHLB advances | 35,000 | 13,000 |
Other borrowings | 1,000 | 2,000 |
Subordinated debentures | 5,000 | 5,000 |
Accrued interest payable | 223 | 213 |
Total | ||
Financial Assets | ||
Cash and cash equivalents | 7,354 | 15,255 |
Interest-bearing deposits in other financial institutions | 2,761 | 2,728 |
Available-for-sale securities | 58,541 | 60,200 |
Loans, net of allowance | 343,856 | 326,886 |
Loans held for sale | 121 | |
Accrued interest receivable | 1,536 | 1,680 |
Financial Liabilities | ||
Demand and savings deposits | 213,574 | 216,857 |
Time deposits | 140,196 | 153,801 |
FHLB advances | 35,023 | 12,902 |
Other borrowings | 1,000 | 2,000 |
Subordinated debentures | 2,434 | 2,434 |
Accrued interest payable | $ 223 | $ 213 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic earnings per share: | ||||
Net income | $ 1,074 | $ 899 | $ 1,979 | $ 1,681 |
Less: Dividends on preferred stock during the quarter | (123) | (130) | (247) | (258) |
Net income available for common stockholders | $ 951 | $ 769 | $ 1,732 | $ 1,423 |
Weighted Average Shares, basic | ||||
Weighted Average Shares, basic | 1,998,979 | 1,968,777 | 1,996,278 | 1,968,777 |
Effect of dilutive securities | ||||
Income | $ 123 | $ 130 | $ 247 | $ 258 |
Convertible preferred stock (in shares) | 568,890 | 541,563 | 568,890 | |
Stock options (in shares) | 69 | |||
Warrants (in shares) | 24,462 | 85,759 | ||
Weighted Average Shares, diluted | ||||
Net income available to common stockholders and assumed conversions | $ 1,074 | $ 899 | $ 1,979 | $ 1,681 |
Weighted Average Shares, diluted | 2,539,948 | 2,562,129 | 2,540,837 | 2,623,426 |
Per Share Amount | ||||
Basic earnings per common share (in dollars per share) | $ 0.48 | $ 0.39 | $ 0.87 | $ 0.72 |
Diluted earnings per common share (in dollars per share) | $ 0.42 | $ 0.35 | $ 0.78 | $ 0.64 |
Stock options not considered in computing diluted earnings per common share (in shares) | 0 | 29,276 | ||
Stock Options | ||||
Effect of dilutive securities | ||||
Convertible preferred stock (in shares) | 539,175 | |||
Stock options (in shares) | 59 | |||
Performance share units | ||||
Effect of dilutive securities | ||||
Performance share units (in shares) | 1,725 | 2,937 |
Regulatory Capital Matters (Det
Regulatory Capital Matters (Details) $ in Thousands | Jun. 30, 2016USD ($)item | Dec. 31, 2015USD ($) |
Regulatory capital matters | ||
Number of classifications for prompt corrective action regulations | item | 5 | |
Tier one risk based minimum required capital conservation | 2.50% | |
Total Capital (to Risk-Weighted Assets) | ||
Actual, Amount | $ 46,518 | $ 44,762 |
For Capital Adequacy Purposes, Amount | $ 29,448 | $ 28,463 |
Total Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 12.64% | 12.58% |
For Capital Adequacy Purposes, Ratio (as a percent) | 8.00% | 8.00% |
Tier I Capital (to Risk-Weighted Assets) | ||
Actual, Amount | $ 41,908 | $ 40,310 |
For Capital Adequacy Purposes, Amount | $ 22,086 | $ 21,348 |
Tier I Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 11.38% | 11.33% |
For Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 6.00% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual Amount | $ 29,647 | $ 27,650 |
For Capital Adequacy Purposes, Amount | $ 16,565 | $ 16,011 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 8.05% | 7.77% |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.50% | 4.50% |
Tier I Leverage Capital to Average Assets | ||
Actual, Amount | $ 41,908 | $ 39,365 |
For Capital Adequacy Purposes, Amount | $ 17,400 | $ 13,961 |
Tier I Capital (to Average Assets) | ||
Actual, Ratio (as a percent) | 9.63% | 9.46% |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
Citizens First Bank, Inc. | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual, Amount | $ 47,162 | $ 46,353 |
For Capital Adequacy Purposes, Amount | 29,440 | 28,459 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 36,800 | $ 35,573 |
Total Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 12.82% | 13.03% |
For Capital Adequacy Purposes, Ratio (as a percent) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 10.00% | 10.00% |
Tier I Capital (to Risk-Weighted Assets) | ||
Actual, Amount | $ 42,554 | $ 41,901 |
For Capital Adequacy Purposes, Amount | 22,080 | 21,344 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 29,440 | $ 28,459 |
Tier I Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 11.56% | 11.78% |
For Capital Adequacy Purposes, Ratio (as a percent) | 6.00% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 8.00% | 8.00% |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual Amount | $ 42,554 | $ 41,901 |
For Capital Adequacy Purposes, Amount | 16,560 | 16,008 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 23,920 | $ 23,123 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 11.56% | 11.78% |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.50% | 4.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 6.50% | 6.50% |
Tier I Leverage Capital to Average Assets | ||
Actual, Amount | $ 42,554 | $ 41,901 |
For Capital Adequacy Purposes, Amount | 17,394 | 17,043 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 21,742 | $ 21,304 |
Tier I Capital (to Average Assets) | ||
Actual, Ratio (as a percent) | 9.79% | 9.83% |
For Capital Adequacy Purposes, Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (as a percent) | 5.00% | 5.00% |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2004 | |
Preferred stock | |||
Stock issued (in shares) | 237 | 250 | |
Cumulative dividends (as a percent) | 6.50% | 6.50% | |
6.5% Cumulative convertible preferred stock | |||
Preferred stock | |||
Stock issued (in shares) | 250 | ||
Stated value (in dollars per share) | $ 31,992 | ||
Purchase price of stock issued | $ 7,998,000 | ||
Sales price of stock issued | $ 31,992 | ||
Cumulative dividends (as a percent) | 6.50% | ||
Conversion price (in dollars per share) | $ 14.06 | $ 15.50 | |
Period after the date of issuance preferred stock can be converted | 3 years | ||
Convertible preferred stock converted to common shares | 13 | ||
Common Stock | |||
Preferred stock | |||
Preferred shares converted to common shares | 29,575 |