Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 09, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | CITIZENS FIRST CORP | |
Entity Central Index Key | 0001073475 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 2,547,042 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from financial institutions | $ 6,998 | $ 8,875 |
Federal funds sold | 10,000 | |
Cash and cash equivalents | 6,998 | 18,875 |
Interest-bearing deposits in other financial institutions | 17,337 | 16,010 |
Available-for-sale securities | 45,627 | 47,098 |
Loans held for sale | 117 | 269 |
Loans, net of allowance for loan losses of $4,399 and $4,373 at March 31, 2019 and December 31, 2018, respectively | 373,523 | 367,171 |
Premises and equipment, net | 8,790 | 8,861 |
Bank owned life insurance (BOLI) | 8,751 | 8,705 |
Federal Home Loan Bank (FHLB) stock, at cost | 2,065 | 2,065 |
Accrued interest receivable | 1,651 | 1,683 |
Deferred income taxes | 430 | 545 |
Goodwill and other intangible assets | 4,132 | 4,150 |
Right of use lease asset | 1,849 | |
Other assets | 811 | 550 |
Total assets | 472,081 | 475,982 |
Deposits. | ||
Noninterest bearing | 52,542 | 55,006 |
Savings, NOW and money market | 191,997 | 192,762 |
Time | 137,262 | 140,841 |
Total deposits | 381,801 | 388,609 |
FHLB advances and other borrowings | 30,000 | 30,000 |
Subordinated debentures | 5,000 | 5,000 |
Accrued interest payable | 421 | 410 |
Lease liability | 1,892 | |
Other liabilities | 1,581 | 1,944 |
Total liabilities | 420,695 | 425,963 |
Stockholders' equity | ||
Common stock, no par value, authorized 5,000,000 shares; issued and outstanding 2,547,402 shares at March 31, 2019 and 2,526,377 shares at December 31, 2018, respectively | 33,253 | 33,309 |
Retained earnings | 18,307 | 17,365 |
Accumulated other comprehensive (loss) | (174) | (655) |
Total stockholders' equity | 51,386 | 50,019 |
Total liabilities and stockholders' equity | $ 472,081 | $ 475,982 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Consolidated Balance Sheets | ||
Loans, allowance for loan losses (in dollars) | $ 4,399 | $ 4,373 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, authorized shares | 5,000,000 | 5,000,000 |
Common stock, issued shares | 2,547,402 | 2,526,377 |
Common stock, outstanding shares | 2,547,402 | 2,526,377 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest and dividend income | ||
Loans | $ 4,744 | $ 4,497 |
Taxable securities | 207 | 168 |
Non-taxable securities | 88 | 103 |
Federal funds sold and other | 117 | 92 |
Total interest and dividend income | 5,156 | 4,860 |
Interest expense | ||
Deposits | 1,076 | 729 |
FHLB advances and other borrowings | 182 | 189 |
Subordinated debentures | 55 | 42 |
Total interest expense | 1,313 | 960 |
Net interest income | 3,843 | 3,900 |
Provision for loan losses | 30 | |
Net interest income after provision for loan losses (credit) | 3,843 | 3,870 |
Non-interest income | ||
Service charges on deposit accounts | 260 | 298 |
Other service charges and fees | 281 | 281 |
Gain on sale of mortgage loans | 80 | 50 |
Non-deposit brokerage fees | 95 | 99 |
Lease income | 83 | 52 |
BOLI income | 46 | 43 |
Total non-interest income | 845 | 823 |
Non-interest expenses | ||
Salaries and employee benefits | 1,809 | 1,846 |
Net occupancy expense | 448 | 453 |
Advertising and public relations | 73 | 81 |
Professional fees | 254 | 164 |
Data processing services | 209 | 194 |
Franchise shares and deposit tax | 120 | 120 |
FDIC insurance | 35 | 42 |
Other | 434 | 459 |
Total non-interest expenses | 3,382 | 3,359 |
Income before income taxes | 1,306 | 1,334 |
Income taxes | 187 | 250 |
Net income | 1,119 | 1,084 |
Net income available for common stockholders | $ 1,119 | $ 1,084 |
Basic earnings per common share (in dollars per share) | $ 0.44 | $ 0.43 |
Diluted earnings per common share (in dollars per share) | $ 0.44 | $ 0.43 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Comprehensive income (loss), net of tax | ||
Net income | $ 1,119 | $ 1,084 |
Other comprehensive income (loss) | ||
Change in unrealized gain (loss) on available for sale securities, net of taxes | 481 | (369) |
Total other comprehensive income (loss) | 481 | (369) |
Comprehensive income | $ 1,600 | $ 715 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2017 | $ 33,138 | $ 13,142 | $ (446) | $ 45,834 |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 1,084 | 1,084 | ||
Stock based compensation | 31 | 31 | ||
Change in accumulated other comprehensive income | (369) | (369) | ||
Dividend declared and paid on common stock | (151) | (151) | ||
Balance at Mar. 31, 2018 | 33,169 | 14,162 | (903) | 46,428 |
Increase (Decrease) in Stockholders' Equity | ||||
Reclassification of disproportionate tax effect | (88) | 88 | ||
Balance at Dec. 31, 2018 | 33,309 | 17,365 | (655) | 50,019 |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 1,119 | 1,119 | ||
Stock based compensation | (56) | (56) | ||
Change in accumulated other comprehensive income | 481 | 481 | ||
Dividend declared and paid on common stock | (177) | (177) | ||
Balance at Mar. 31, 2019 | $ 33,253 | $ 18,307 | $ (174) | $ 51,386 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Consolidated Statements of Changes in Stockholders' Equity | ||
Dividend declared and paid on common stock (in dollars per share) | $ 0.07 | $ 0.06 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net income | $ 1,119 | $ 1,084 |
Items not requiring (providing) cash: | ||
Depreciation | 95 | 100 |
Provision for loan losses | 30 | |
Amortization of premiums and discounts on securities | 40 | 46 |
Amortization of core deposit intangible | 18 | 18 |
Deferred income taxes | (13) | |
Stock based compensation | (56) | 31 |
BOLI Income | (46) | (43) |
Proceeds from sale of mortgage loans held for sale | 3,528 | 2,317 |
Origination of mortgage loans held for sale | (3,296) | (2,410) |
Gains on sales of mortgage loans held for sale | (80) | (50) |
Loss (gain) on sale premises and equipment | (4) | (4) |
Changes in: | ||
Accrued interest receivable | 32 | 163 |
Other assets | (261) | (144) |
Accrued interest payable and other liabilities | (308) | (165) |
Net cash provided by operating activities | 768 | 973 |
Investing Activities | ||
Loan originations and payments, net | (6,352) | (14,757) |
Increase in interest-bearing deposits in other financial institutions | (1,327) | (9,430) |
Purchase of premises and equipment | (24) | (19) |
Proceeds from maturities of available-for-sale securities | 2,040 | 3,059 |
Purchase of available-for-sale securities | 1,002 | |
Proceeds from sales of premises and equipment | 4 | 4 |
Purchase of FHLB stock | (12) | |
Net cash used in investing activities | (5,659) | (22,157) |
Financing Activities | ||
Net change in demand deposits, money market, NOW and savings accounts | (3,229) | 575 |
Net change in time deposits | (3,579) | 13,619 |
Proceeds from FHLB advances | 10,000 | |
Repayment of FHLB advances | (3,000) | |
Dividends paid on common stock | (178) | (151) |
Net cash provided by (used in) financing activities | (6,986) | 21,043 |
Decrease in Cash and Cash Equivalents | (11,877) | (141) |
Cash and cash equivalents, beginning of year | 18,875 | 6,444 |
Cash and cash equivalents, end of year | 6,998 | 6,303 |
Supplemental Cash Flows Information | ||
Interest paid | 1,302 | $ 917 |
Recording of right of use asset in exchange for lease obligations | $ 1,947 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Summary of Significant Accounting Policies | Citizens First Corporation Notes to Unaudited Consolidated Financial Statements 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 2018 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– Accounting Standards Update No. 2016-02, “Leases” (“ASU 2016-02”), was issued in February 2016 and provides revised guidance related to the accounting and reporting of leases. ASU 2016-02 requires lessees to recognize most leases on the balance sheet. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee depends on its classification as a finance or operating lease. ASU 2016-02 requires a modified retrospective transition, with a package of practical expedients that entities may elect to apply. In January 2018, Accounting Standards Update No. 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842” was issued to address concerns about the costs and complexity of complying with the transition provisions of ASU 2016-02. In July 2018, Accounting Standards Update No. 2018-10, “Codification Improvements to Topic 842, Leases” was issued to provide more detailed guidance and additional clarification for implementing ASU 2016-02. Also in July 2018, Accounting Standards Update No. 2018-11, “Targeted Improvements” (“ASU 2018-11”) was issued and allows for an optional transition method in which the provisions of Topic 842 would be applied upon the adoption date and would not have to be retroactively applied to the earliest reporting period presented in the consolidated financial statements. The Corporation used this optional transition method for the adoption of Topic 842. In December 2018, Accounting Standards Update No. 2018-20, “Leases (Topic 842) Narrow-Scope Improvement for Lessors” was issued to address lessors’ concerns about sales taxes and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and non-lease components. These ASUs were effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. The Company adopted Topic 842 “Leases” effective January 1, 2019 and has applied the guidance to all operating leases within the scope of Topic 842 at that date. The Company elected to adopt the package of practical expedients, which among other things, does not require reassessment of lease classification. The Company recognized $1.9 million in operating lease right-of-use-assets, $1.9 million in operating lease liabilities. There was no change to the timing in recognition of operating lease rent expense on the Company’s consolidated financial statements associated with our leases. In March 2019, Accounting Standards Update No. 2019-01, “Leases (Topic 842) Codification Improvements” (“ASU 2019-01”) was issued to address lessors’ concerns about determining fair value of underlying leased assets and presentation issues in the statement of cash flows for sales-type and direct financing leases. ASU 2019-01 also clarified for both lessees and lessors that transition disclosures related to Topic 250 were not required for annual periods are also not required for interim periods. ASU 2019-01 was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. The Corporation early adopted this ASU 2019-01 effective January 1, 2019 and it did not have a material impact on the Company’s 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 public companies for reporting periods beginning after December 15, 2019. We have attended training sessions and are assessing our data and system needs and evaluating the impact of adopting this new accounting standard. The Company expects to recognize a one-time increase to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of this standard on the consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization of Purchased Callable Debt Securities. The standard shorted the amortization period for premiums on callable debt securities by requiring that premiums be amortized to the first (or earliest) call date instead of as an adjustment to the yield over the contractual life. The standard became effective for public companies for fiscal years beginning after December 15, 2018. This accounting standard did not have a material impact on the consolidated financial statements. |
Reclassifications
Reclassifications | 3 Months Ended |
Mar. 31, 2019 | |
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 | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 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 March 31, 2019 U. S. government agencies and government sponsored entities $ 7,925 72 $ (34) $ 7,963 Agency mortgage-backed securities: residential 19,655 74 (127) 19,602 State and municipal 16,373 131 (82) 16,422 Trust preferred security 1,894 — (254) 1,640 Total Available-for-Sale Securities $ 45,847 $ 277 $ (497) $ 45,627 December 31, 2018 U. S. government agencies and government sponsored entities $ 8,529 $ 29 $ (118) $ 8,440 Agency mortgage-backed securities: residential 20,640 15 (355) 20,300 State and municipal 16,866 57 (195) 16,728 Trust preferred security 1,893 — (263) 1,630 Total Available-for-Sale Securities $ 47,928 $ 101 $ (931) $ 47,098 The amortized cost and fair value of investment securities at March 31, 2019 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately. March 31, 2019 (Dollars in Thousands) Available-For-Sale Amortized Cost Fair Value Due in one year or less $ 2,658 $ 2,660 Due from one to five years 8,418 8,406 Due from five to ten years 10,512 10,629 Due after ten years 4,604 4,330 Agency mortgage-backed: residential 19,655 19,602 Total $ 45,847 $ 45,627 The following table summarizes the investment securities with unrealized losses by portfolio segment at March 31, 2019 and December 31, 2018, 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 Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses March 31, 2019: U.S. government agencies and government sponsored entities $ — $ — $ 3,591 $ (34) $ 3,591 $ (34) Agency mortgage-backed: residential — — 12,543 (127) 12,543 (127) State and municipal 1,024 (7) 5,563 (75) 6,587 (82) Trust preferred security — — 1,640 (254) 1,640 (254) Total temporarily impaired $ 1,024 $ (7) $ 23,337 $ (490) $ 24,361 $ (497) (Dollars in Thousands) Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2018: U.S. government agencies and government sponsored entities $ — $ — $ 6,243 $ (118) $ 6,243 $ (118) Agency mortgage-backed: residential 1,029 (2) 15,431 (353) 16,460 (355) State and municipal 689 (2) 9,445 (193) 10,134 (195) Trust preferred security — — 1,630 (263) 1,630 (263) Total temporarily impaired $ 1,718 $ (4) $ 32,749 $ (927) $ 34,467 $ (931) 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. The majority 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 | 3 Months Ended |
Mar. 31, 2019 | |
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) March 31, 2019 December 31, 2018 Commercial $ 64,710 $ 61,551 Commercial real estate: Construction 41,186 36,829 Other 179,692 180,800 Residential real estate 89,061 88,797 Consumer: Auto 837 841 Other 2,436 2,726 Total Loans 377,922 371,544 Less: Allowance for loan losses (4,399) (4,373) Net loans $ 373,523 $ 367,171 The following table sets forth an analysis of our allowance for loan losses for the three months ending March 31, 2019 and 2018. (Dollars in Thousands) March 31, 2019 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 592 $ 3,122 $ 611 $ 9 $ 39 $ 4,373 Provision (credit) for loan losses 59 (62) 5 5 (7) — Loans charged-off — — — (5) — (5) Recoveries 18 12 1 — — 31 Total ending allowance balance $ 669 $ 3,072 $ 617 $ 9 $ 32 $ 4,399 (Dollars in Thousands) March 31, 2018 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 633 $ 3,515 $ 554 $ 10 $ 12 $ 4,724 Provision (credit) for loan losses 22 (40) 45 — 3 30 Loans charged-off (38) — (27) (1) — (66) Recoveries — — 4 1 — 5 Total ending allowance balance $ 617 $ 3,475 $ 576 $ 10 $ 15 $ 4,693 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 March 31, 2019 and December 31, 2018, which includes net deferred loan fees. Accrued interest receivable of $1.4 million at both March 31, 2019 and December 31, 2018, is not considered significant and therefore not included in the recorded investment in loans presented in the following tables. (Dollars in Thousands) March 31, 2019 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ 50 $ — $ — $ — $ 50 Collectively evaluated 669 3,022 617 9 32 4,349 Total ending allowance balance $ 669 $ 3,072 $ 617 $ 9 $ 32 $ 4,399 Loans: Individually evaluated for impairment $ — $ 1,249 $ 137 $ 3 $ — $ 1,389 Collectively evaluated 64,710 219,629 88,924 3,270 — 376,533 Total ending loans balance $ 64,710 $ 220,878 $ 89,061 $ 3,273 $ — $ 377,922 (Dollars in Thousands) December 31, 2018 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ 48 $ — $ — $ — $ 48 Collectively evaluated 592 3,074 611 9 39 4,325 Total ending allowance balance $ 592 $ 3,122 $ 611 $ 9 $ 39 $ 4,373 Loans: Individually evaluated for impairment $ — $ 1,270 $ 147 $ 4 $ — $ 1,421 Collectively evaluated 61,551 216,359 88,650 3,563 — 370,123 Total ending loans balance $ 61,551 $ 217,629 $ 88,797 $ 3,567 $ — $ 371,544 The following table presents information related to impaired loans by class of loans as of March 31, 2019 and December 31, 2018. 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) March 31, 2019 December 31, 2018 Unpaid Recorded Allowance Loan Unpaid Recorded Allowance With no related allowance recorded: Commercial $ — $ — $ — $ — $ — $ — Commercial real estate: Other 1,182 1,182 — 1,202 1,202 — Residential real estate 137 137 — 147 147 — Consumer: Other 3 3 — 4 4 — Subtotal $ 1,322 $ 1,322 $ — $ 1,353 $ 1,353 $ — With an allowance recorded: Commercial real estate: Other $ 67 $ 67 $ 50 $ 68 $ 68 $ 48 Subtotal $ 67 $ 67 $ 50 $ 68 $ 68 $ 48 Total $ 1,389 $ 1,389 $ 50 $ 1,421 $ 1,421 $ 48 Information on impaired loans for the three months ending March 31, 2019 and 2018 is as follows: (Dollars in Thousands) (Dollars in Thousands) March 31, 2019 March 31, 2018 Average Interest Cash Basis Average Interest Cash B asis Commercial $ — $ — $ — $ 1 $ — $ — Commercial real estate: Other 1,260 17 1 2,078 25 1 Residential real estate 137 2 — 157 2 1 Consumer: Other 3 — — 6 — — Total $ 1,400 $ 19 $ 1 $ 2,242 $ 27 $ 2 The recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2019 and December 31, 2018 are summarized below: (Dollars in Thousands) (Dollars in Thousands) March 31, 2019 December 31, 2018 Loans Past Due Nonaccrual Loans Past Due Nonaccrual Commercial real estate: Other — 1,183 — 1,202 Residential real estate — 87 — 96 Total $ — $ 1,270 $ — $ 1,298 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 March 31, 2019 and December 31, 2018 by class of loans. Non-accrual loans are included and have been categorized based on their payment status: (Dollars in Thousands) 30-59 60-89 90 and Over Total Past Current Total March 31, 2019 Commercial $ 156 $ — $ — $ 156 $ 64,554 $ 64,710 Commercial real estate: Construction — — — — 41,186 41,186 Other 117 — — 117 179,575 179,692 Residential real estate 53 74 87 214 88,847 89,061 Consumer: Auto — — — — 837 837 Other — — — — 2,436 2,436 Subtotal $ 326 $ 74 $ 87 $ 487 $ 377,435 $ 377,922 (Dollars in Thousands) 30-59 60-89 90 and Over Total Past Current Total December 31, 2018 Commercial $ — $ 11 $ — $ 11 $ 61,540 $ 61,551 Commercial real estate: Construction — — — — 36,829 36,829 Other — — — — 180,800 180,800 Residential real estate — 37 97 134 88,663 88,797 Consumer: Auto — — — — 841 841 Other 5 — — 5 2,721 2,726 Subtotal $ 5 $ 48 $ 97 $ 150 $ 371,394 $ 371,544 Troubled Debt Restructurings: The Company reported total troubled debt restructurings of $1.3 million as of March 31, 2019 and December 31, 2018. 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 five troubled debt restructurings reported at quarter end, three loans totaling $120,000 were on accrual status and two loans totaling $1.2 million were on non-accrual status. There were no troubled debt restructurings that occurred during the three months ending March 31, 2019, and no troubled debt restructuring that occurred during the three months ending March 31, 2018. Specific allocations of $50,000 and $46,000 were reported for troubled debt restructurings as of March 31, 2019 and March 31, 2018. No payment defaults or charge-offs were reported for troubled debt restructuring during the three months ending March 31, 2019 and March 31, 2018. The terms of certain other loans were modified during the three months ending March 31, 2019 and 2018 that did not meet the definition of a troubled debt restructuring. These loans modified during the three months ending March 31, 2019 have a total recorded investment of $16.0 million as of March 31, 2019. These loans modified during the three months ending March 31, 2018 had a total recorded investment of $8.7 million as of March 31, 2018. 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: (Dollars in Thousands) Pass Special Substandard Doubtful Total March 31, 2019 Commercial $ 64,459 $ — $ 251 $ — $ 64,710 Commercial real estate: Construction 41,186 — — — 41,186 Other 178,342 — 1,350 — 179,692 Residential real estate 88,974 — 87 — 89,061 Consumer: Auto 837 — — — 837 Other 2,428 — 8 — 2,436 Total $ 376,226 $ — $ 1,696 $ — $ 377,922 (Dollars in Thousands) Pass Special Substandard Doubtful Total December 31, 2018 Commercial $ 60,961 $ — $ 590 $ — $ 61,551 Commercial real estate: Construction 36,829 — — — 36,829 Other 179,419 — 1,381 — 180,800 Residential real estate 88,664 — 133 — 88,797 Consumer: Auto 841 — — — 841 Other 2,719 — 7 — 2,726 Total $ 369,433 $ — $ 2,111 $ — $ 371,544 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
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) March 31, 2019 December 31, 2018 Quoted Significant Significant Quoted Significant Significant Assets: Securities available-for-sale U. S. government agencies and government sponsored entities — $ 7,963 — — $ 8,440 — Agency mortgage-backed securities-residential — 19,602 — — 20,300 — State and municipal — 16,422 — — 16,728 — Trust preferred security — — 1,640 — — 1,630 Corporate bonds — — — — — — Total investment securities $ — $ 43,987 $ 1,640 $ — $ 45,468 $ 1,630 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 three months ended March 31: Trust Preferred Security 2019 2018 Balance of recurring Level 3 assets at January 1 $ 1,630 $ 1,440 Total gains or (losses) for the period included in other comprehensive income 10 120 Balance of recurring Level 3 assets at March 31 $ 1,640 $ 1,560 There were no financial assets measured at fair value on a non-recurring basis as of March 31, 2019 or December 31, 2018. There were no loans measured for impairment using the fair value of collateral dependent loans, no valuation allowance, and no resulting provision for loan losses as of March 31, 2019 or December 31, 2018. There was no other real estate owned to measure at fair value at March 31, 2019 or December 31, 2018. No write-downs of other real estate were taken in the quarters ending March 31, 2019 or March 31, 2018. The carrying amount and estimated fair values of financial instruments at March 31, 2019 and December 31, 2018 were as follows: Fair Value Measurements at March 31, 2019 Carrying Level 1 Level 2 Level 3 Total Financial Assets Cash and due from financial institutions $ 6,998 $ 6,998 $ — $ — $ 6,998 Federal funds sold and interest-bearing deposits in other financial institutions 17,337 17,337 — — 17,337 Available-for-sale-securities 45,627 — 43,987 1,640 45,627 Loans, net of allowance 373,523 — — 371,482 371,482 Loans held for sale 117 — 119 — 119 Accrued interest receivable 1,651 11 217 1,423 1,651 Federal Home Loan Bank stock 2,065 — — — N/A Financial Liabilities Demand and savings deposits $ 244,539 $ 244,539 $ — $ — $ 244,539 Time deposits 137,262 — 136,373 — 136,373 FHLB advances 30,000 — 29,965 — 29,965 Subordinated debentures 5,000 — — 2,722 2,722 Accrued interest payable 421 20 344 57 421 Fair Value Measurements at December 31, 2018 Carrying Level 1 Level 2 Level 3 Total Financial Assets Cash and due from financial institutions $ 8,875 $ 8,875 $ — $ — $ 8,875 Federal funds sold and interest-bearing deposits in other financial institutions 26,010 26,010 — — 26,010 Available-for-sale-securities 47,098 — 45,468 1,630 47,098 Loans, net of allowance 367,171 — — 364,862 364,862 Loans held for sale 269 — 274 — 274 Accrued interest receivable 1,683 13 255 1,415 1,683 Federal Home Loan Bank stock 2,065 — — — N/A Financial Liabilities Demand and savings deposits $ 247,768 $ 247,768 $ — $ — $ 247,768 Time deposits 140,841 — 138,869 — 138,869 FHLB advances 30,000 — 29,837 — 29,837 Subordinated debentures 5,000 — — 2,722 2,722 Accrued interest payable 410 17 339 54 410 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) Loans, Net: Fair values of loans, excluding loans held for sale, was estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values were based on carrying values resulting in a Level 3 classification. Fair values for other loans were estimated using discounted cash flow analyses, using interest rates 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 fair value as described previously. The methods utilized to estimate the fair value of loans did not necessarily represent an exit price. (d) Loans Held for Sale: The fair value of loans held for sale is estimated based upon binding contracts and quotes from third party investors resulting in a Level 2 classification. (e) FHLB Stock: It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability. (f) 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. (g) 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. (h) Accrued Interest Receivable/Payable: The carrying amounts of accrued interest approximate fair value resulting in a classification consistent with the asset/liability they are associated with. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
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 performance share units. The following table reconciles the basic and diluted earnings per share computations for the three months ended March 31, 2019 and 2018. (Income in Thousands) 2019 2018 Quarter ended March 31, 2019 Quarter ended March 31, 2018 Weighted Per Weighted Per Average Share Average Share Income Shares Amount Income Shares Amount Net income $ 1,119 $ 1,084 Basic earnings per share: $ 1,119 2,539,597 $ 0.44 $ 1,084 2,526,377 $ 0.43 Effect of dilutive securities Performance share units — 3,340 — 14,993 Diluted earnings per share: Net income available to common stockholders and assumed conversions $ 1,119 2,542,937 $ 0.44 $ 1,084 2,541,370 $ 0.43 |
Regulatory Capital Matters
Regulatory Capital Matters | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018, 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. 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 is 2.5% as of March 31, 2019 and was 1.87% for 2018. The buffer could limit the payment of dividends and discretionary bonuses to officers if a bank fails to maintain required capital levels. Citizens First Bank, Inc.’s actual capital amounts and ratios (excluding capital conservation buffer) are presented in the following tables at the date indicated. (Dollars in Thousands) To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes (1) Action Provisions March 31, 2019 Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) 56,359 14.21 % 31,731 8.00 % $ 39,664 10.00 % Tier I Capital (to risk-weighted assets) 51,960 13.10 % 23,798 6.00 % 31,731 8.00 % Common Equity Tier I Capital (to risk-weighted assets) 51,960 13.10 % 17,849 4.50 % 25,781 6.50 % Tier I Leverage Capital (to average assets) 51,960 11.17 % 18,606 4.00 % 23,257 5.0 % (Dollars in Thousands) To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes (1) Action Provisions December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) 55,115 14.03 % 31,424 8.00 % $ 39,280 10.00 % Tier I Capital (to risk-weighted assets) 50,742 12.92 % 23,568 6.00 % 31,424 8.00 % Common Equity Tier I Capital (to risk-weighted assets) 50,742 12.92 % 17,676 4.50 % 25,532 6.50 % Tier I Leverage Capital (to average assets) 50,742 10.82 % 18,764 4.00 % 23,455 5.0 % (1) With the capital conservation rules fully phased-in as of January 1, 2019, Basel III Capital Rules require banking organizations to maintain: a minimum ratio of common equity Tier 1 capital to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer”; a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer; a minimum ratio of total capital to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer; and a minimum ratio of Tier 1 capital to adjusted average consolidated assets of at least 4.0%. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases | |
Leases | Note 8 - Leases The Company has committed to rent premises used in business operations under non-cancelable operating leases and determines if an arrangement meets the definition of a lease upon inception. The Company adopted the provisions of ASU 2016-02 (Topic 842) on January 1, 2019. Operating lease right-of-use (“ROU”) assets represent a right to use an underlying asset for the contractual lease term. Operating lease liabilities represent an obligation to make lease payments arising from the lease. Upon adoption, operating lease ROU assets totaling $1.9 million and operating lease liabilities totaling $1.9 million were recognized in our Unaudited Consolidated Balance Sheets for leases that existed at the adoption date, based on the present value of lease payments over the remaining lease term. Operating leases entered into after the adoption date will be recognized as an operating lease ROU asset and operating lease liability at the commencement date of the new lease. The Corporation’s leases do not provide an implicit interest rate, therefore the Company used its incremental collateralized borrowing rates commensurate with the underlying lease terms to determine the present value of operating lease liabilities. The weighted average discount rate used to discount operating lease liabilities at March 31, 2019 was 1.04%. Operating lease terms include options to extend when it is reasonably certain that the Corporation will exercise such options, determined on a lease-by-lease basis. As of March 31, 2019, the Corporation does not have any leases that have not yet commenced. At March 31, 2019, lease expiration dates ranged from 11 months to 6 years, with additional renewal options on certain leases for 5 years. At March 31, 2019, the weighted average remaining lease term for the Corporation’s operating leases was 5 years. Rental expense for operating leases is recognized on a straight-line basis over the lease term and amounted to $98 thousand and $105 thousand, respectively, for the three months ended March 31, 2019 and 2018. Variable lease components, such as fair market value adjustments, are expensed as incurred and not included in ROU assets and operating lease liabilities. The following table presents the minimum annual lease payments under the terms of these leases, inclusive of renewal options that the Corporation is reasonably certain to renew, at March 31, 2019: (Dollars In Thousands) 2019 $ 290 2020 394 2021 403 2022 293 2023 243 Thereafter 269 $ 1,892 |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2019 | |
Business Combination | |
Business Combination | Note 9 – Business Combination On February 21, 2019, German American Bancorp, Inc. (NASDAQ: GABC) ("German American") and the Company announced that they have entered into a definitive agreement to merge the Company into German American. Upon completion of the transaction, the Bank will be merged into German American's subsidiary bank, German American Bank. Under terms of the definitive agreement, the Company’s common shareholders (excluding 401(k) shareholders) will receive a fixed exchange ratio of 0.6629 shares of German American common stock for each share of the Company in a tax free exchange, and a cash payment of $5.80 per Company share. Shareholders who hold Company common shares in the Citizens First Bank 401(k) Profit Sharing Plan will receive a cash payment equal to $5.80 plus the exchange ratio multiplied by the 20-day volume weighted average price of German American’s common shares on the second day prior to closing (provided that such average price will not be less than the closing price of German American’s common shares on the last trading day preceding the closing). The Company will hold a special meeting of its shareholders on June 25, 2019 to vote on the merger agreement. Completion of the transaction is subject to approval by regulatory authorities and the Company’s shareholders, as well as certain other closing conditions. The transaction is expected to be completed in the third quarter of 2019. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Nature of Operations and Summary of Significant Accounting Policies | |
Nature of Operations and Principles of Consolidation | 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 2018 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– Accounting Standards Update No. 2016-02, “Leases” (“ASU 2016-02”), was issued in February 2016 and provides revised guidance related to the accounting and reporting of leases. ASU 2016-02 requires lessees to recognize most leases on the balance sheet. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee depends on its classification as a finance or operating lease. ASU 2016-02 requires a modified retrospective transition, with a package of practical expedients that entities may elect to apply. In January 2018, Accounting Standards Update No. 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842” was issued to address concerns about the costs and complexity of complying with the transition provisions of ASU 2016-02. In July 2018, Accounting Standards Update No. 2018-10, “Codification Improvements to Topic 842, Leases” was issued to provide more detailed guidance and additional clarification for implementing ASU 2016-02. Also in July 2018, Accounting Standards Update No. 2018-11, “Targeted Improvements” (“ASU 2018-11”) was issued and allows for an optional transition method in which the provisions of Topic 842 would be applied upon the adoption date and would not have to be retroactively applied to the earliest reporting period presented in the consolidated financial statements. The Corporation used this optional transition method for the adoption of Topic 842. In December 2018, Accounting Standards Update No. 2018-20, “Leases (Topic 842) Narrow-Scope Improvement for Lessors” was issued to address lessors’ concerns about sales taxes and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and non-lease components. These ASUs were effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. The Company adopted Topic 842 “Leases” effective January 1, 2019 and has applied the guidance to all operating leases within the scope of Topic 842 at that date. The Company elected to adopt the package of practical expedients, which among other things, does not require reassessment of lease classification. The Company recognized $1.9 million in operating lease right-of-use-assets, $1.9 million in operating lease liabilities. There was no change to the timing in recognition of operating lease rent expense on the Company’s consolidated financial statements associated with our leases. In March 2019, Accounting Standards Update No. 2019-01, “Leases (Topic 842) Codification Improvements” (“ASU 2019-01”) was issued to address lessors’ concerns about determining fair value of underlying leased assets and presentation issues in the statement of cash flows for sales-type and direct financing leases. ASU 2019-01 also clarified for both lessees and lessors that transition disclosures related to Topic 250 were not required for annual periods are also not required for interim periods. ASU 2019-01 was effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. The Corporation early adopted this ASU 2019-01 effective January 1, 2019 and it did not have a material impact on the Company’s 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 public companies for reporting periods beginning after December 15, 2019. We have attended training sessions and are assessing our data and system needs and evaluating the impact of adopting this new accounting standard. The Company expects to recognize a one-time increase to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of this standard on the consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization of Purchased Callable Debt Securities. The standard shorted the amortization period for premiums on callable debt securities by requiring that premiums be amortized to the first (or earliest) call date instead of as an adjustment to the yield over the contractual life. The standard became effective for public companies for fiscal years beginning after December 15, 2018. This accounting standard did not have a material impact on the consolidated financial statements. |
Available-For-Sale Securities (
Available-For-Sale Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 U. S. government agencies and government sponsored entities $ 7,925 72 $ (34) $ 7,963 Agency mortgage-backed securities: residential 19,655 74 (127) 19,602 State and municipal 16,373 131 (82) 16,422 Trust preferred security 1,894 — (254) 1,640 Total Available-for-Sale Securities $ 45,847 $ 277 $ (497) $ 45,627 December 31, 2018 U. S. government agencies and government sponsored entities $ 8,529 $ 29 $ (118) $ 8,440 Agency mortgage-backed securities: residential 20,640 15 (355) 20,300 State and municipal 16,866 57 (195) 16,728 Trust preferred security 1,893 — (263) 1,630 Total Available-for-Sale Securities $ 47,928 $ 101 $ (931) $ 47,098 |
Summary of the amortized cost and fair value of investment securities by contractual maturity | March 31, 2019 (Dollars in Thousands) Available-For-Sale Amortized Cost Fair Value Due in one year or less $ 2,658 $ 2,660 Due from one to five years 8,418 8,406 Due from five to ten years 10,512 10,629 Due after ten years 4,604 4,330 Agency mortgage-backed: residential 19,655 19,602 Total $ 45,847 $ 45,627 |
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 Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses March 31, 2019: U.S. government agencies and government sponsored entities $ — $ — $ 3,591 $ (34) $ 3,591 $ (34) Agency mortgage-backed: residential — — 12,543 (127) 12,543 (127) State and municipal 1,024 (7) 5,563 (75) 6,587 (82) Trust preferred security — — 1,640 (254) 1,640 (254) Total temporarily impaired $ 1,024 $ (7) $ 23,337 $ (490) $ 24,361 $ (497) (Dollars in Thousands) Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses December 31, 2018: U.S. government agencies and government sponsored entities $ — $ — $ 6,243 $ (118) $ 6,243 $ (118) Agency mortgage-backed: residential 1,029 (2) 15,431 (353) 16,460 (355) State and municipal 689 (2) 9,445 (193) 10,134 (195) Trust preferred security — — 1,630 (263) 1,630 (263) Total temporarily impaired $ 1,718 $ (4) $ 32,749 $ (927) $ 34,467 $ (931) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Loans and Allowance for Loan Losses | |
Schedule of categories of loans | (Dollars in Thousands) March 31, 2019 December 31, 2018 Commercial $ 64,710 $ 61,551 Commercial real estate: Construction 41,186 36,829 Other 179,692 180,800 Residential real estate 89,061 88,797 Consumer: Auto 837 841 Other 2,436 2,726 Total Loans 377,922 371,544 Less: Allowance for loan losses (4,399) (4,373) Net loans $ 373,523 $ 367,171 |
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 March 31, 2019 and 2018. (Dollars in Thousands) March 31, 2019 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 592 $ 3,122 $ 611 $ 9 $ 39 $ 4,373 Provision (credit) for loan losses 59 (62) 5 5 (7) — Loans charged-off — — — (5) — (5) Recoveries 18 12 1 — — 31 Total ending allowance balance $ 669 $ 3,072 $ 617 $ 9 $ 32 $ 4,399 (Dollars in Thousands) March 31, 2018 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 633 $ 3,515 $ 554 $ 10 $ 12 $ 4,724 Provision (credit) for loan losses 22 (40) 45 — 3 30 Loans charged-off (38) — (27) (1) — (66) Recoveries — — 4 1 — 5 Total ending allowance balance $ 617 $ 3,475 $ 576 $ 10 $ 15 $ 4,693 |
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) March 31, 2019 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ 50 $ — $ — $ — $ 50 Collectively evaluated 669 3,022 617 9 32 4,349 Total ending allowance balance $ 669 $ 3,072 $ 617 $ 9 $ 32 $ 4,399 Loans: Individually evaluated for impairment $ — $ 1,249 $ 137 $ 3 $ — $ 1,389 Collectively evaluated 64,710 219,629 88,924 3,270 — 376,533 Total ending loans balance $ 64,710 $ 220,878 $ 89,061 $ 3,273 $ — $ 377,922 (Dollars in Thousands) December 31, 2018 Commercial Commercial Real Estate Residential Real Estate Consumer Unallocated Total Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ 48 $ — $ — $ — $ 48 Collectively evaluated 592 3,074 611 9 39 4,325 Total ending allowance balance $ 592 $ 3,122 $ 611 $ 9 $ 39 $ 4,373 Loans: Individually evaluated for impairment $ — $ 1,270 $ 147 $ 4 $ — $ 1,421 Collectively evaluated 61,551 216,359 88,650 3,563 — 370,123 Total ending loans balance $ 61,551 $ 217,629 $ 88,797 $ 3,567 $ — $ 371,544 |
Schedule of impaired loans by class of loans | (Dollars in Thousands) (Dollars in Thousands) March 31, 2019 December 31, 2018 Unpaid Recorded Allowance Loan Unpaid Recorded Allowance With no related allowance recorded: Commercial $ — $ — $ — $ — $ — $ — Commercial real estate: Other 1,182 1,182 — 1,202 1,202 — Residential real estate 137 137 — 147 147 — Consumer: Other 3 3 — 4 4 — Subtotal $ 1,322 $ 1,322 $ — $ 1,353 $ 1,353 $ — With an allowance recorded: Commercial real estate: Other $ 67 $ 67 $ 50 $ 68 $ 68 $ 48 Subtotal $ 67 $ 67 $ 50 $ 68 $ 68 $ 48 Total $ 1,389 $ 1,389 $ 50 $ 1,421 $ 1,421 $ 48 Information on impaired loans for the three months ending March 31, 2019 and 2018 is as follows: (Dollars in Thousands) (Dollars in Thousands) March 31, 2019 March 31, 2018 Average Interest Cash Basis Average Interest Cash B asis Commercial $ — $ — $ — $ 1 $ — $ — Commercial real estate: Other 1,260 17 1 2,078 25 1 Residential real estate 137 2 — 157 2 1 Consumer: Other 3 — — 6 — — Total $ 1,400 $ 19 $ 1 $ 2,242 $ 27 $ 2 |
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) March 31, 2019 December 31, 2018 Loans Past Due Nonaccrual Loans Past Due Nonaccrual Commercial real estate: Other — 1,183 — 1,202 Residential real estate — 87 — 96 Total $ — $ 1,270 $ — $ 1,298 |
Schedule of aging of the recorded investment in past due loans by class of loans | (Dollars in Thousands) 30-59 60-89 90 and Over Total Past Current Total March 31, 2019 Commercial $ 156 $ — $ — $ 156 $ 64,554 $ 64,710 Commercial real estate: Construction — — — — 41,186 41,186 Other 117 — — 117 179,575 179,692 Residential real estate 53 74 87 214 88,847 89,061 Consumer: Auto — — — — 837 837 Other — — — — 2,436 2,436 Subtotal $ 326 $ 74 $ 87 $ 487 $ 377,435 $ 377,922 (Dollars in Thousands) 30-59 60-89 90 and Over Total Past Current Total December 31, 2018 Commercial $ — $ 11 $ — $ 11 $ 61,540 $ 61,551 Commercial real estate: Construction — — — — 36,829 36,829 Other — — — — 180,800 180,800 Residential real estate — 37 97 134 88,663 88,797 Consumer: Auto — — — — 841 841 Other 5 — — 5 2,721 2,726 Subtotal $ 5 $ 48 $ 97 $ 150 $ 371,394 $ 371,544 |
Schedule of risk category of loans by class of loans based on the most recent analyses performed | (Dollars in Thousands) Pass Special Substandard Doubtful Total March 31, 2019 Commercial $ 64,459 $ — $ 251 $ — $ 64,710 Commercial real estate: Construction 41,186 — — — 41,186 Other 178,342 — 1,350 — 179,692 Residential real estate 88,974 — 87 — 89,061 Consumer: Auto 837 — — — 837 Other 2,428 — 8 — 2,436 Total $ 376,226 $ — $ 1,696 $ — $ 377,922 (Dollars in Thousands) Pass Special Substandard Doubtful Total December 31, 2018 Commercial $ 60,961 $ — $ 590 $ — $ 61,551 Commercial real estate: Construction 36,829 — — — 36,829 Other 179,419 — 1,381 — 180,800 Residential real estate 88,664 — 133 — 88,797 Consumer: Auto 841 — — — 841 Other 2,719 — 7 — 2,726 Total $ 369,433 $ — $ 2,111 $ — $ 371,544 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Measurements | |
Schedule of assets measured at fair value on a recurring basis | Fair Value Measurements at: (Dollars in Thousands) (Dollars in Thousands) March 31, 2019 December 31, 2018 Quoted Significant Significant Quoted Significant Significant Assets: Securities available-for-sale U. S. government agencies and government sponsored entities — $ 7,963 — — $ 8,440 — Agency mortgage-backed securities-residential — 19,602 — — 20,300 — State and municipal — 16,422 — — 16,728 — Trust preferred security — — 1,640 — — 1,630 Corporate bonds — — — — — — Total investment securities $ — $ 43,987 $ 1,640 $ — $ 45,468 $ 1,630 |
Schedule of reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | Trust Preferred Security 2019 2018 Balance of recurring Level 3 assets at January 1 $ 1,630 $ 1,440 Total gains or (losses) for the period included in other comprehensive income 10 120 Balance of recurring Level 3 assets at March 31 $ 1,640 $ 1,560 |
Schedule of carrying amount and estimated fair values of financial instruments | Fair Value Measurements at March 31, 2019 Carrying Level 1 Level 2 Level 3 Total Financial Assets Cash and due from financial institutions $ 6,998 $ 6,998 $ — $ — $ 6,998 Federal funds sold and interest-bearing deposits in other financial institutions 17,337 17,337 — — 17,337 Available-for-sale-securities 45,627 — 43,987 1,640 45,627 Loans, net of allowance 373,523 — — 371,482 371,482 Loans held for sale 117 — 119 — 119 Accrued interest receivable 1,651 11 217 1,423 1,651 Federal Home Loan Bank stock 2,065 — — — N/A Financial Liabilities Demand and savings deposits $ 244,539 $ 244,539 $ — $ — $ 244,539 Time deposits 137,262 — 136,373 — 136,373 FHLB advances 30,000 — 29,965 — 29,965 Subordinated debentures 5,000 — — 2,722 2,722 Accrued interest payable 421 20 344 57 421 Fair Value Measurements at December 31, 2018 Carrying Level 1 Level 2 Level 3 Total Financial Assets Cash and due from financial institutions $ 8,875 $ 8,875 $ — $ — $ 8,875 Federal funds sold and interest-bearing deposits in other financial institutions 26,010 26,010 — — 26,010 Available-for-sale-securities 47,098 — 45,468 1,630 47,098 Loans, net of allowance 367,171 — — 364,862 364,862 Loans held for sale 269 — 274 — 274 Accrued interest receivable 1,683 13 255 1,415 1,683 Federal Home Loan Bank stock 2,065 — — — N/A Financial Liabilities Demand and savings deposits $ 247,768 $ 247,768 $ — $ — $ 247,768 Time deposits 140,841 — 138,869 — 138,869 FHLB advances 30,000 — 29,837 — 29,837 Subordinated debentures 5,000 — — 2,722 2,722 Accrued interest payable 410 17 339 54 410 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share | |
Schedule of reconciliation of basic and diluted earnings per share computations | (Income in Thousands) 2019 2018 Quarter ended March 31, 2019 Quarter ended March 31, 2018 Weighted Per Weighted Per Average Share Average Share Income Shares Amount Income Shares Amount Net income $ 1,119 $ 1,084 Basic earnings per share: $ 1,119 2,539,597 $ 0.44 $ 1,084 2,526,377 $ 0.43 Effect of dilutive securities Performance share units — 3,340 — 14,993 Diluted earnings per share: Net income available to common stockholders and assumed conversions $ 1,119 2,542,937 $ 0.44 $ 1,084 2,541,370 $ 0.43 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Regulatory Capital Matters | |
Schedule of the Company's and the Bank's actual capital amounts and ratios | (Dollars in Thousands) To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes (1) Action Provisions March 31, 2019 Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) 56,359 14.21 % 31,731 8.00 % $ 39,664 10.00 % Tier I Capital (to risk-weighted assets) 51,960 13.10 % 23,798 6.00 % 31,731 8.00 % Common Equity Tier I Capital (to risk-weighted assets) 51,960 13.10 % 17,849 4.50 % 25,781 6.50 % Tier I Leverage Capital (to average assets) 51,960 11.17 % 18,606 4.00 % 23,257 5.0 % (Dollars in Thousands) To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes (1) Action Provisions December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) 55,115 14.03 % 31,424 8.00 % $ 39,280 10.00 % Tier I Capital (to risk-weighted assets) 50,742 12.92 % 23,568 6.00 % 31,424 8.00 % Common Equity Tier I Capital (to risk-weighted assets) 50,742 12.92 % 17,676 4.50 % 25,532 6.50 % Tier I Leverage Capital (to average assets) 50,742 10.82 % 18,764 4.00 % 23,455 5.0 % With the capital conservation rules fully phased-in as of January 1, 2019, Basel III Capital Rules require banking organizations to maintain: a minimum ratio of common equity Tier 1 capital to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer”; a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer; a minimum ratio of total capital to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer; and a minimum ratio of Tier 1 capital to adjusted average consolidated assets of at least 4.0%. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases | |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | (Dollars In Thousands) 2019 $ 290 2020 394 2021 403 2022 293 2023 243 Thereafter 269 $ 1,892 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Nature of Operations and Summary of Significant Accounting Policies | |||
Service charges on deposit accounts | $ 260 | $ 298 | |
Non-deposit brokerage fees | 95 | $ 99 | |
Cumulative effect | 18,307 | $ 17,365 | |
Operating lease right-of-use-assets | 1,849 | ||
Operating lease liabilities | $ 1,892 |
Available-For-Sale Securities -
Available-For-Sale Securities - Amortized Cost and Fair Value with Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | $ 45,847 | $ 47,928 |
Gross Unrealized Gains | 277 | 101 |
Gross Unrealized Losses | (497) | (931) |
Fair value of securities | 45,627 | 47,098 |
U. S. government agencies and government sponsored entities | ||
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | 7,925 | 8,529 |
Gross Unrealized Gains | 72 | 29 |
Gross Unrealized Losses | (34) | (118) |
Fair value of securities | 7,963 | 8,440 |
Agency mortgage-backed securities: residential | ||
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | 19,655 | 20,640 |
Gross Unrealized Gains | 74 | 15 |
Gross Unrealized Losses | (127) | (355) |
Fair value of securities | 19,602 | 20,300 |
State and municipal | ||
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | 16,373 | 16,866 |
Gross Unrealized Gains | 131 | 57 |
Gross Unrealized Losses | (82) | (195) |
Fair value of securities | 16,422 | 16,728 |
Trust preferred security | ||
Amortized cost and fair value of the available for sale investment securities portfolio | ||
Amortized Cost | 1,894 | 1,893 |
Gross Unrealized Losses | (254) | (263) |
Fair value of securities | $ 1,640 | $ 1,630 |
Available-For-Sale Securities_2
Available-For-Sale Securities - Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year or less | $ 2,658 | |
Due from one to five years | 8,418 | |
Due from five to ten years | 10,512 | |
Due after ten years | 4,604 | |
Agency mortgage-backed: residential | 19,655 | |
Amortized Cost | 45,847 | $ 47,928 |
Fair Value | ||
Due in one year or less | 2,660 | |
Due from one to five years | 8,406 | |
Due from five to ten years | 10,629 | |
Due after ten years | 4,330 | |
Agency mortgage-backed: residential | 19,602 | |
Fair Value | $ 45,627 | $ 47,098 |
Available-For-Sale Securities_3
Available-For-Sale Securities - Investment Securities with Unrealized Losses by Investment Category (Details) item in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | |
Investment holdings | ||
Fair Value, Less than 12 Months | $ 1,024 | $ 1,718 |
Unrealized Losses, Less than 12 Months | (7) | (4) |
Fair Value, 12 Months or More | 23,337 | 32,749 |
Unrealized Losses, 12 Months or More | (490) | (927) |
Fair Value, Total | 24,361 | 34,467 |
Unrealized Losses, Total | $ (497) | (931) |
Other than temporary impairment losses on investments | ||
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 | 3,591 | 6,243 |
Unrealized Losses, 12 Months or More | (34) | (118) |
Fair Value, Total | 3,591 | 6,243 |
Unrealized Losses, Total | (34) | (118) |
Agency mortgage-backed securities: residential | ||
Investment holdings | ||
Fair Value, Less than 12 Months | 1,029 | |
Unrealized Losses, Less than 12 Months | (2) | |
Fair Value, 12 Months or More | 12,543 | 15,431 |
Unrealized Losses, 12 Months or More | (127) | (353) |
Fair Value, Total | 12,543 | 16,460 |
Unrealized Losses, Total | (127) | (355) |
State and municipal | ||
Investment holdings | ||
Fair Value, Less than 12 Months | 1,024 | 689 |
Unrealized Losses, Less than 12 Months | (7) | (2) |
Fair Value, 12 Months or More | 5,563 | 9,445 |
Unrealized Losses, 12 Months or More | (75) | (193) |
Fair Value, Total | 6,587 | 10,134 |
Unrealized Losses, Total | (82) | (195) |
Trust preferred security | ||
Investment holdings | ||
Fair Value, 12 Months or More | 1,640 | 1,630 |
Unrealized Losses, 12 Months or More | (254) | (263) |
Fair Value, Total | 1,640 | 1,630 |
Unrealized Losses, Total | $ (254) | $ (263) |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Loans By Category (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Categories of loans | ||||
Total loans | $ 377,922 | $ 371,544 | ||
Less Allowance for loan losses | (4,399) | (4,373) | $ (4,693) | $ (4,724) |
Net Loans | 373,523 | 367,171 | ||
Commercial | ||||
Categories of loans | ||||
Total loans | 64,710 | 61,551 | ||
Less Allowance for loan losses | (669) | (592) | (617) | (633) |
Commercial Real Estate | ||||
Categories of loans | ||||
Total loans | 220,878 | 217,629 | ||
Less Allowance for loan losses | (3,072) | (3,122) | (3,475) | (3,515) |
Residential Real Estate | ||||
Categories of loans | ||||
Total loans | 89,061 | 88,797 | ||
Less Allowance for loan losses | (617) | (611) | (576) | (554) |
Consumer | ||||
Categories of loans | ||||
Total loans | 3,273 | 3,567 | ||
Less Allowance for loan losses | (9) | (9) | (10) | (10) |
Unallocated | ||||
Categories of loans | ||||
Less Allowance for loan losses | (32) | (39) | $ (15) | $ (12) |
Commercial | Commercial | ||||
Categories of loans | ||||
Total loans | 64,710 | 61,551 | ||
Real estate | Residential Real Estate | ||||
Categories of loans | ||||
Total loans | 89,061 | 88,797 | ||
Construction | Commercial Real Estate | ||||
Categories of loans | ||||
Total loans | 41,186 | 36,829 | ||
Auto | Consumer | ||||
Categories of loans | ||||
Total loans | 837 | 841 | ||
Other | Commercial Real Estate | ||||
Categories of loans | ||||
Total loans | 179,692 | 180,800 | ||
Other | Consumer | ||||
Categories of loans | ||||
Total loans | $ 2,436 | $ 2,726 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Allowance Roll-forward and Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Allowance for loan losses: | ||||
Beginning Balance | $ 4,373 | $ 4,724 | ||
Provision (credit) for loan losses | 30 | |||
Loans charged-off | (5) | (66) | ||
Recoveries | 31 | 5 | ||
Total ending allowance balance | 4,399 | 4,693 | ||
Accrued interest receivable | $ 1,651 | $ 1,683 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 50 | 48 | ||
Collectively evaluated | 4,349 | 4,325 | ||
Total ending allowance balance | 4,373 | 4,724 | 4,399 | 4,373 |
Loans: | ||||
Individually evaluated for impairment | 1,389 | 1,421 | ||
Collectively evaluated | 376,533 | 370,123 | ||
Loans and Leases Receivable, Gross, Total | 377,922 | 371,544 | ||
Loans Receivable | ||||
Allowance for loan losses: | ||||
Interest receivable not included in recorded investment | 1,400 | |||
Commercial | ||||
Allowance for loan losses: | ||||
Beginning Balance | 592 | 633 | ||
Provision (credit) for loan losses | 59 | 22 | ||
Loans charged-off | (38) | |||
Recoveries | 18 | |||
Total ending allowance balance | 669 | 617 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||
Collectively evaluated | 669 | 592 | ||
Total ending allowance balance | 592 | 633 | 669 | 592 |
Loans: | ||||
Collectively evaluated | 64,710 | 61,551 | ||
Loans and Leases Receivable, Gross, Total | 64,710 | 61,551 | ||
Commercial Real Estate | ||||
Allowance for loan losses: | ||||
Beginning Balance | 3,122 | 3,515 | ||
Provision (credit) for loan losses | (62) | (40) | ||
Recoveries | 12 | |||
Total ending allowance balance | 3,072 | 3,475 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 50 | 48 | ||
Collectively evaluated | 3,022 | 3,074 | ||
Total ending allowance balance | 3,122 | 3,515 | 3,072 | 3,122 |
Loans: | ||||
Individually evaluated for impairment | 1,249 | 1,270 | ||
Collectively evaluated | 219,629 | 216,359 | ||
Loans and Leases Receivable, Gross, Total | 220,878 | 217,629 | ||
Residential Real Estate | ||||
Allowance for loan losses: | ||||
Beginning Balance | 611 | 554 | ||
Provision (credit) for loan losses | 5 | 45 | ||
Loans charged-off | (27) | |||
Recoveries | 1 | 4 | ||
Total ending allowance balance | 617 | 576 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||
Collectively evaluated | 617 | 611 | ||
Total ending allowance balance | 611 | 554 | 617 | 611 |
Loans: | ||||
Individually evaluated for impairment | 137 | 147 | ||
Collectively evaluated | 88,924 | 88,650 | ||
Loans and Leases Receivable, Gross, Total | 89,061 | 88,797 | ||
Consumer | ||||
Allowance for loan losses: | ||||
Beginning Balance | 9 | 10 | ||
Provision (credit) for loan losses | 5 | |||
Loans charged-off | (5) | (1) | ||
Recoveries | 1 | |||
Total ending allowance balance | 9 | 10 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||
Collectively evaluated | 9 | 9 | ||
Total ending allowance balance | 9 | 10 | 9 | 9 |
Loans: | ||||
Individually evaluated for impairment | 3 | 4 | ||
Collectively evaluated | 3,270 | 3,563 | ||
Loans and Leases Receivable, Gross, Total | 3,273 | 3,567 | ||
Unallocated | ||||
Allowance for loan losses: | ||||
Beginning Balance | 39 | 12 | ||
Provision (credit) for loan losses | (7) | 3 | ||
Total ending allowance balance | 32 | 15 | ||
Allowance for loan losses, Ending allowance balance attributable to loans: | ||||
Collectively evaluated | 32 | 39 | ||
Total ending allowance balance | $ 39 | $ 12 | 32 | 39 |
Commercial | Commercial | ||||
Loans: | ||||
Loans and Leases Receivable, Gross, Total | 64,710 | 61,551 | ||
Real estate | Residential Real Estate | ||||
Loans: | ||||
Loans and Leases Receivable, Gross, Total | 89,061 | 88,797 | ||
Construction | Commercial Real Estate | ||||
Loans: | ||||
Loans and Leases Receivable, Gross, Total | 41,186 | 36,829 | ||
Auto | Consumer | ||||
Loans: | ||||
Loans and Leases Receivable, Gross, Total | 837 | 841 | ||
Other | Commercial Real Estate | ||||
Loans: | ||||
Loans and Leases Receivable, Gross, Total | 179,692 | 180,800 | ||
Other | Consumer | ||||
Loans: | ||||
Loans and Leases Receivable, Gross, Total | $ 2,436 | $ 2,726 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Unpaid Principal Balance | |||
With no related allowance recorded | $ 1,322 | $ 1,353 | |
With an allowance recorded | 67 | 68 | |
Total | 1,389 | 1,421 | |
Recorded Investment | |||
With no related allowance recorded | 1,322 | 1,353 | |
With an allowance recorded | 67 | 68 | |
Total | 1,389 | 1,421 | |
Allowance for Loan Losses Allocated | |||
Total | 50 | 48 | |
Average Recorded Investment | |||
Total | 1,400 | $ 2,242 | |
Interest Income Recognized | |||
Total | 19 | 27 | |
Cash Basis Interest Recognized | |||
Total | 1 | 2 | |
Commercial | |||
Average Recorded Investment | |||
Total | 1 | ||
Residential Real Estate | |||
Average Recorded Investment | |||
Total | 137 | 157 | |
Interest Income Recognized | |||
Total | 2 | 2 | |
Cash Basis Interest Recognized | |||
Total | 1 | ||
Real estate | Residential Real Estate | |||
Unpaid Principal Balance | |||
With no related allowance recorded | 137 | 147 | |
Recorded Investment | |||
With no related allowance recorded | 137 | 147 | |
Other | Commercial Real Estate | |||
Unpaid Principal Balance | |||
With no related allowance recorded | 1,182 | 1,202 | |
With an allowance recorded | 67 | 68 | |
Recorded Investment | |||
With no related allowance recorded | 1,182 | 1,202 | |
With an allowance recorded | 67 | 68 | |
Allowance for Loan Losses Allocated | |||
Total | 50 | 48 | |
Average Recorded Investment | |||
Total | 1,260 | 2,078 | |
Interest Income Recognized | |||
Total | 17 | 25 | |
Cash Basis Interest Recognized | |||
Total | 1 | 1 | |
Other | Consumer | |||
Unpaid Principal Balance | |||
With no related allowance recorded | 3 | 4 | |
Recorded Investment | |||
With no related allowance recorded | 3 | $ 4 | |
Average Recorded Investment | |||
Total | $ 3 | $ 6 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Investment in Nonaccrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Recorded investment in nonaccrual and loans past due over 90 days | ||
Nonaccrual | $ 1,270 | $ 1,298 |
Residential Real Estate | ||
Recorded investment in nonaccrual and loans past due over 90 days | ||
Nonaccrual | 87 | 96 |
Other | Commercial Real Estate | ||
Recorded investment in nonaccrual and loans past due over 90 days | ||
Nonaccrual | $ 1,183 | $ 1,202 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Aging of Past Due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Aging of the recorded investment in past due loans | ||
Total Past Due | $ 487 | $ 150 |
Current | 377,435 | 371,394 |
Loans and Leases Receivable, Gross, Total | 377,922 | 371,544 |
Commercial | ||
Aging of the recorded investment in past due loans | ||
Loans and Leases Receivable, Gross, Total | 64,710 | 61,551 |
Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Loans and Leases Receivable, Gross, Total | 220,878 | 217,629 |
Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Loans and Leases Receivable, Gross, Total | 89,061 | 88,797 |
Consumer | ||
Aging of the recorded investment in past due loans | ||
Loans and Leases Receivable, Gross, Total | 3,273 | 3,567 |
Commercial | Commercial | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 156 | 11 |
Current | 64,554 | 61,540 |
Loans and Leases Receivable, Gross, Total | 64,710 | 61,551 |
Real estate | Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 214 | 134 |
Current | 88,847 | 88,663 |
Loans and Leases Receivable, Gross, Total | 89,061 | 88,797 |
Construction | Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Current | 41,186 | 36,829 |
Loans and Leases Receivable, Gross, Total | 41,186 | 36,829 |
Auto | Consumer | ||
Aging of the recorded investment in past due loans | ||
Current | 837 | 841 |
Loans and Leases Receivable, Gross, Total | 837 | 841 |
Other | Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 117 | |
Current | 179,575 | 180,800 |
Loans and Leases Receivable, Gross, Total | 179,692 | 180,800 |
Other | Consumer | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 5 | |
Current | 2,436 | 2,721 |
Loans and Leases Receivable, Gross, Total | 2,436 | 2,726 |
30 to 59 Days Past Due | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 326 | 5 |
30 to 59 Days Past Due | Commercial | Commercial | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 156 | |
30 to 59 Days Past Due | Real estate | Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 53 | |
30 to 59 Days Past Due | Other | Commercial Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 117 | |
30 to 59 Days Past Due | Other | Consumer | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 5 | |
60 to 89 Days Past Due | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 74 | 48 |
60 to 89 Days Past Due | Commercial | Commercial | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 11 | |
60 to 89 Days Past Due | Real estate | Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 74 | 37 |
Over 90 Days Past Due | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | 87 | 97 |
Over 90 Days Past Due | Real estate | Residential Real Estate | ||
Aging of the recorded investment in past due loans | ||
Total Past Due | $ 87 | $ 97 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) | 3 Months Ended | |
Mar. 31, 2019USD ($)loan | Mar. 31, 2018USD ($)loan | |
Loans and Allowance for Loan Losses | ||
Total troubled debt restructurings | $ 1,300,000 | |
Commitments to lend additional amounts to customers with outstanding loans that are classified as troubled debt restructurings | $ 0 | |
Number of loans reported as troubled debt restructurings | loan | 5 | |
Number of loans accruing that are classified as troubled debt restructurings | loan | 3 | |
Loans accruing that are classified as troubled debt restructurings | $ 120,000 | |
Number of loans on nonaccrual status that are classified as troubled debt restructurings | loan | 2 | |
Loans on nonaccrual status that are classified as troubled debt restructurings | $ 1,200,000 | |
Number of loans modified as troubled debt restructurings that occurred during the year | loan | 0 | 0 |
Specific allocations reported for the troubled debt restructurings | $ 50,000 | $ 46,000 |
Troubled debt restructurings charged off | 0 | 0 |
Total recorded investment for loans modified (other than through troubled debt restructuring) | $ 16,000,000 | $ 8,700,000 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Credit Quality Indicators | ||
Minimum outstanding balance of loans to be reviewed on a monthly basis | $ 25 | |
Total loans | 377,922 | $ 371,544 |
Pass | ||
Credit Quality Indicators | ||
Total loans | 376,226 | 369,433 |
Substandard | ||
Credit Quality Indicators | ||
Total loans | 1,696 | 2,111 |
Commercial | Commercial | ||
Credit Quality Indicators | ||
Total loans | 64,710 | 61,551 |
Commercial | Commercial | Pass | ||
Credit Quality Indicators | ||
Total loans | 64,459 | 60,961 |
Commercial | Commercial | Substandard | ||
Credit Quality Indicators | ||
Total loans | 251 | 590 |
Real estate | Residential Real Estate | ||
Credit Quality Indicators | ||
Total loans | 89,061 | 88,797 |
Real estate | Residential Real Estate | Pass | ||
Credit Quality Indicators | ||
Total loans | 88,974 | 88,664 |
Real estate | Residential Real Estate | Substandard | ||
Credit Quality Indicators | ||
Total loans | 87 | 133 |
Construction | Commercial Real Estate | ||
Credit Quality Indicators | ||
Total loans | 41,186 | 36,829 |
Construction | Commercial Real Estate | Pass | ||
Credit Quality Indicators | ||
Total loans | 41,186 | 36,829 |
Auto | Consumer | ||
Credit Quality Indicators | ||
Total loans | 837 | 841 |
Auto | Consumer | Pass | ||
Credit Quality Indicators | ||
Total loans | 837 | 841 |
Other | Commercial Real Estate | ||
Credit Quality Indicators | ||
Total loans | 179,692 | 180,800 |
Other | Commercial Real Estate | Pass | ||
Credit Quality Indicators | ||
Total loans | 178,342 | 179,419 |
Other | Commercial Real Estate | Substandard | ||
Credit Quality Indicators | ||
Total loans | 1,350 | 1,381 |
Other | Consumer | ||
Credit Quality Indicators | ||
Total loans | 2,436 | 2,726 |
Other | Consumer | Pass | ||
Credit Quality Indicators | ||
Total loans | 2,428 | 2,719 |
Other | Consumer | Substandard | ||
Credit Quality Indicators | ||
Total loans | $ 8 | $ 7 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured on a Recurring and Nonrecurring Basis (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Assets: | |||
Securities available-for-sale | $ 45,627,000 | $ 47,098,000 | |
Fair value, assets measured on recurring basis, unobservable input reconciliation | |||
Impaired loans | 1,389,000 | 1,421,000 | |
Other real estate owned | 0 | 0 | |
Principal balance of impaired loans | 0 | 0 | |
Valuation allowance | 0 | ||
Increase in the provision for loan losses | 0 | ||
Write-downs of other real estate owned | 0 | $ 0 | |
U. S. government agencies and government sponsored entities | |||
Assets: | |||
Securities available-for-sale | 7,963,000 | 8,440,000 | |
Agency mortgage-backed securities: residential | |||
Assets: | |||
Securities available-for-sale | 19,602,000 | 20,300,000 | |
State and municipal | |||
Assets: | |||
Securities available-for-sale | 16,422,000 | 16,728,000 | |
Trust preferred security | |||
Assets: | |||
Securities available-for-sale | 1,640,000 | 1,630,000 | |
Level 2 | |||
Assets: | |||
Securities available-for-sale | 43,987,000 | 45,468,000 | |
Level 3 | |||
Assets: | |||
Securities available-for-sale | 1,640,000 | 1,630,000 | |
Recurring basis | Level 2 | |||
Assets: | |||
Securities available-for-sale | 43,987,000 | 45,468,000 | |
Recurring basis | Level 2 | U. S. government agencies and government sponsored entities | |||
Assets: | |||
Securities available-for-sale | 7,963,000 | 8,440,000 | |
Recurring basis | Level 2 | Agency mortgage-backed securities: residential | |||
Assets: | |||
Securities available-for-sale | 19,602,000 | 20,300,000 | |
Recurring basis | Level 2 | State and municipal | |||
Assets: | |||
Securities available-for-sale | 16,422,000 | 16,728,000 | |
Recurring basis | Level 3 | |||
Assets: | |||
Securities available-for-sale | 1,640,000 | 1,630,000 | |
Recurring basis | Level 3 | Trust preferred security | |||
Assets: | |||
Securities available-for-sale | 1,640,000 | 1,630,000 | |
Fair value, assets measured on recurring basis, unobservable input reconciliation | |||
Recurring Level 3 assets, beginning of period balance | 1,630,000 | 1,440,000 | 1,440,000 |
Losses for the period included in other comprehensive income | 10,000 | 120,000 | |
Recurring Level 3 assets, end of period balance | $ 1,640,000 | $ 1,560,000 | $ 1,630,000 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative and Qualitative Information of Level 3 Fair Value Measurements (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Valuation techniques | ||
Impaired loans | $ 1,389,000 | $ 1,421,000 |
Other real estate owned | 0 | 0 |
Non-recurring basis | ||
Valuation techniques | ||
Financial assets measured at fair value | $ 0 | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amount and Estimated Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financial Assets | ||
Federal funds sold and interest-bearing deposits in other financial institutions | $ 17,337 | $ 16,010 |
Available-for-sale securities | 45,627 | 47,098 |
Loans, net of allowance | 373,523 | 367,171 |
Accrued interest receivable | 1,651 | 1,683 |
Federal Home Loan Bank stock | 2,065 | 2,065 |
Financial Liabilities | ||
Subordinated debentures | 5,000 | 5,000 |
Accrued interest payable | 421 | 410 |
Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 6,998 | 8,875 |
Federal funds sold and interest-bearing deposits in other financial institutions | 17,337 | 26,010 |
Accrued interest receivable | 11 | 13 |
Financial Liabilities | ||
Demand and savings deposits | 244,539 | 247,768 |
Accrued interest payable | 20 | 17 |
Level 2 | ||
Financial Assets | ||
Available-for-sale securities | 43,987 | 45,468 |
Loans held for sale | 119 | 274 |
Accrued interest receivable | 217 | 255 |
Financial Liabilities | ||
Time deposits | 136,373 | 138,869 |
FHLB advances | 29,965 | 29,837 |
Accrued interest payable | 344 | 339 |
Level 3 | ||
Financial Assets | ||
Available-for-sale securities | 1,640 | 1,630 |
Loans, net of allowance | 371,482 | 364,862 |
Accrued interest receivable | 1,423 | 1,415 |
Financial Liabilities | ||
Subordinated debentures | 2,722 | 2,722 |
Accrued interest payable | 57 | 54 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 6,998 | 8,875 |
Federal funds sold and interest-bearing deposits in other financial institutions | 17,337 | 26,010 |
Available-for-sale securities | 45,627 | 47,098 |
Loans, net of allowance | 373,523 | 367,171 |
Loans held for sale | 117 | 269 |
Accrued interest receivable | 1,651 | 1,683 |
Federal Home Loan Bank stock | 2,065 | 2,065 |
Financial Liabilities | ||
Demand and savings deposits | 244,539 | 247,768 |
Time deposits | 137,262 | 140,841 |
FHLB advances | 30,000 | 30,000 |
Subordinated debentures | 5,000 | 5,000 |
Accrued interest payable | 421 | 410 |
Total | ||
Financial Assets | ||
Cash and cash equivalents | 6,998 | 8,875 |
Federal funds sold and interest-bearing deposits in other financial institutions | 17,337 | 26,010 |
Available-for-sale securities | 45,627 | 47,098 |
Loans, net of allowance | 371,482 | 364,862 |
Loans held for sale | 119 | 274 |
Accrued interest receivable | 1,651 | 1,683 |
Financial Liabilities | ||
Demand and savings deposits | 244,539 | 247,768 |
Time deposits | 136,373 | 138,869 |
FHLB advances | 29,965 | 29,837 |
Subordinated debentures | 2,722 | 2,722 |
Accrued interest payable | $ 421 | $ 410 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic earnings per share: | ||
Net income | $ 1,119 | $ 1,084 |
Net income available for common stockholders | $ 1,119 | $ 1,084 |
Weighted Average Shares, basic | ||
Weighted Average Shares, basic | 2,539,597 | 2,526,377 |
Weighted Average Shares, diluted | ||
Net income available to common stockholders and assumed conversions | $ 1,119 | $ 1,084 |
Weighted Average Shares, diluted | 2,542,937 | 2,541,370 |
Per Share Amount | ||
Basic earnings per common share (in dollars per share) | $ 0.44 | $ 0.43 |
Diluted earnings per common share (in dollars per share) | $ 0.44 | $ 0.43 |
Diluted earnings per share | ||
Net income available to common stockholders and assumed conversions | $ 1,119 | $ 1,084 |
Performance share units | ||
Weighted Average Shares, diluted | ||
Weighted Average Shares, diluted | 3,340 | 14,993 |
Regulatory Capital Matters (Det
Regulatory Capital Matters (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | |
Regulatory capital matters | ||
Number of classifications for prompt corrective action regulations | item | 5 | |
Capital conservation buffer (as a percent) | 2.50% | 1.87% |
Tier one risk based minimum required capital conservation | 2.50% | |
Citizens First Bank, Inc. | ||
Total Capital (to Risk-Weighted Assets) | ||
Actual, Amount | $ 56,359 | $ 55,115 |
For Capital Adequacy Purposes, Amount | 31,731 | 31,424 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 39,664 | $ 39,280 |
Total Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 14.21% | 14.03% |
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 | $ 51,960 | $ 50,742 |
For Capital Adequacy Purposes, Amount | 23,798 | 23,568 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 31,731 | $ 31,424 |
Tier I Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 13.10% | 12.92% |
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 | $ 51,960 | $ 50,742 |
For Capital Adequacy Purposes, Amount | 17,849 | 17,676 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 25,781 | $ 25,532 |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | ||
Actual, Ratio (as a percent) | 13.10% | 12.92% |
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 | $ 51,960 | $ 50,742 |
For Capital Adequacy Purposes, Amount | 18,606 | 18,764 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 23,257 | $ 23,455 |
Tier I Capital (to Average Assets) | ||
Actual, Ratio (as a percent) | 11.17% | 10.82% |
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% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Leases | ||
Operating lease ROU assets | $ 1,849 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Operating lease ROU assets | |
Operating lease liabilities | $ 1,892 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Operating lease liabilities | |
Operating lease weighted average discount rate | 1.04% | |
Lessee, Operating Lease, Existence of Option to Extend [true/false] | true | |
Operating lease renewal term (in years) | 5 years | |
Operating lease weighted average remaining lease term | 5 years | |
Operating lease rent expense | $ 98 | $ 105 |
Minimum | ||
Leases | ||
Operating lease remaining term | 11 months | |
Maximum | ||
Leases | ||
Operating lease remaining term | 6 years |
Leases - Minimum Annual Lease P
Leases - Minimum Annual Lease Payments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases | |
2020 | $ 290 |
2021 | 394 |
2022 | 403 |
2023 | 293 |
2024 | 243 |
Thereafter | 269 |
Total minimum annual lease payments | $ 1,892 |
Business Combination (Details)
Business Combination (Details) | Feb. 21, 2019$ / shares |
Business Combination | |
Exchange ratio of the number of shares each shareholder of the company received from the acquirer | 0.6629 |
Cash payment per share each shareholder of the company received from acquirer | 5.80 |
Number of days of volume weighted average share price of acquirer to be used to multiply by exchange ratio to determine number of shares the profit sharing participants will receive | 20 days |