Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | UNITED BANCSHARES INC/OH |
Document Type | 10-Q |
Current Fiscal Year End Date | --12-31 |
Trading Symbol | uboh |
Entity Common Stock, Shares Outstanding | 3,267,643 |
Amendment Flag | false |
Entity Central Index Key | 1,087,456 |
Entity Filer Category | Smaller Reporting Company |
Document Period End Date | Sep. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
CASH AND CASH EQUIVALENTS | ||
Cash and due from banks | $ 9,401 | $ 9,926 |
Interest-bearing deposits in other banks | 4,448 | 4,260 |
Total cash and cash equivalents | 13,849 | 14,186 |
SECURITIES, available-for-sale | 178,740 | 190,205 |
FEDERAL HOME LOAN BANK STOCK, at cost | 5,302 | 4,830 |
CERTIFICATES OF DEPOSIT, at cost | 1,245 | 1,494 |
LOANS HELD FOR SALE | 6,993 | 1,510 |
LOANS AND LEASES | 493,089 | 376,086 |
Less allowance for loan and lease losses | 2,817 | 3,345 |
Net loans and leases | 490,272 | 372,741 |
PREMISES AND EQUIPMENT, net | 19,312 | 13,395 |
GOODWILL | 25,432 | 10,072 |
CORE DEPOSIT INTANGIBLE ASSETS, net | 829 | 766 |
CASH SURRENDER VALUE OF LIFE INSURANCE | 17,726 | 17,351 |
OTHER REAL ESTATE OWNED | 451 | 578 |
OTHER ASSETS, including accrued interest receivable | 10,562 | 5,991 |
Total Assets | 770,713 | 633,119 |
Deposits: | ||
Non-interest bearing | 104,913 | 98,134 |
Interest-bearing | 532,761 | 426,546 |
Total deposits | 637,674 | 524,680 |
Other borrowings | 40,260 | 18,774 |
Junior subordinated deferrable interest debentures | 12,832 | 12,806 |
Other liabilities | 4,233 | 4,301 |
Total liabilities | 694,999 | 560,561 |
SHAREHOLDERS' EQUITY | ||
Common stock, stated value $1.00 authorized 10,000,000 shares; issued 3,760,557 shares | 3,761 | 3,761 |
Surplus | 14,746 | 14,674 |
Retained earnings | 64,521 | 62,717 |
Accumulated other comprehensive income (loss) | 396 | (866) |
Treasury stock, at cost, 492,914 shares at September 30, 2017 and 494,040 shares at December 31, 2016 | (7,710) | (7,728) |
Total shareholders' equity | 75,714 | 72,558 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 770,713 | $ 633,119 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in Dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 3,760,557 | 3,760,557 |
Treasury stock, shares | 492,914 | 494,040 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
INTEREST INCOME | ||||
Loans and leases, including fees | $ 5,384 | $ 4,498 | $ 14,516 | $ 12,980 |
Securities: | ||||
Taxable | 581 | 552 | 1,833 | 1,623 |
Tax-exempt | 420 | 390 | 1,266 | 1,224 |
Other | 99 | 101 | 257 | 262 |
Total interest income | 6,484 | 5,541 | 17,872 | 16,089 |
INTEREST EXPENSE | ||||
Deposits | 559 | 437 | 1,466 | 1,249 |
Borrowings | 217 | 143 | 569 | 403 |
Total interest expense | 776 | 580 | 2,035 | 1,652 |
Net interest income | 5,708 | 4,961 | 15,837 | 14,437 |
CREDIT FOR LOAN AND LEASE LOSSES | (350) | (700) | ||
Net interest income after credit for loan and lease losses | 5,708 | 4,961 | 16,187 | 15,137 |
NON-INTEREST INCOME | ||||
Gain on sale of loans | 235 | 202 | 466 | 409 |
Net securities gains | 30 | 23 | 111 | 159 |
Other operating income | 1,095 | 1,064 | 3,168 | 2,903 |
Total non-interest income | 1,360 | 1,289 | 3,745 | 3,471 |
NON-INTEREST EXPENSES | 6,427 | 4,454 | 15,949 | 13,371 |
INCOME BEFORE INCOME TAXES | 641 | 1,796 | 3,983 | 5,237 |
PROVISION FOR INCOME TAXES | 239 | 418 | 1,002 | 1,216 |
NET INCOME | $ 402 | $ 1,378 | $ 2,981 | $ 4,021 |
NET INCOME PER SHARE (basic and diluted) | ||||
NET INCOME PER SHARE (basic and diluted) (in dollars per share) | $ 0.12 | $ 0.42 | $ 0.91 | $ 1.22 |
Weighted average common shares outstanding, Basic | 3,267,527 | 3,287,875 | 3,267,191 | 3,295,307 |
Weighted average common shares outstanding, Diluted | 3,273,313 | 3,287,875 | 3,272,976 | 3,295,307 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 402 | $ 1,378 | $ 2,981 | $ 4,021 |
Unrealized gains on securities: | ||||
Unrealized holding gains during period | 189 | (886) | 2,023 | 2,376 |
Reclassification adjustments for (gains) losses included in net income | (30) | (23) | (111) | (159) |
Other comprehensive income, before income taxes | 159 | (909) | 1,912 | 2,217 |
Income tax expense related to items of other comprehensive income | 54 | (309) | 650 | 754 |
Other comprehensive income | 105 | (600) | 1,262 | 1,463 |
COMPREHENSIVE INCOME | $ 507 | $ 778 | $ 4,243 | $ 5,484 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Beginning balance at Dec. 31, 2015 | $ 3,761 | $ 14,669 | $ 58,642 | $ 1,397 | $ (6,908) | $ 71,561 |
Net income | 4,021 | 4,021 | ||||
Other comprehensive income | 1,463 | 1,463 | ||||
Repurchase of shares | (633) | (633) | ||||
Shares issued from treasury in connection with the Corporation's Employee Stock Purchase Plan | 5 | 13 | 18 | |||
Cash dividends declared | (1,086) | (1,086) | ||||
Balance at Sep. 30, 2016 | 3,761 | 14,674 | 61,577 | 2,860 | (7,528) | 75,344 |
Beginning balance at Dec. 31, 2015 | 3,761 | 14,669 | 58,642 | 1,397 | (6,908) | 71,561 |
Balance at Dec. 31, 2016 | 3,761 | 14,674 | 62,717 | (866) | (7,728) | 72,558 |
Beginning balance at Dec. 31, 2016 | 3,761 | 14,674 | 62,717 | (866) | (7,728) | 72,558 |
Net income | 2,981 | 2,981 | ||||
Other comprehensive income | 1,262 | 1,262 | ||||
Shares issued from treasury in connection with the Corporation's Employee Stock Purchase Plan | 7 | 18 | 25 | |||
Stock option expense | 65 | 65 | ||||
Cash dividends declared | (1,177) | (1,177) | ||||
Balance at Sep. 30, 2017 | 3,761 | 14,746 | 64,521 | 396 | (7,710) | 75,714 |
Net income | 402 | |||||
Other comprehensive income | 105 | |||||
Balance at Sep. 30, 2017 | $ 3,761 | $ 14,746 | $ 64,521 | $ 396 | $ (7,710) | $ 75,714 |
Consolidated Shareholders' Equi
Consolidated Shareholders' Equity (Parentheticals) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash dividends declared per share (in Dollars per share) | $ 0.36 | $ 0.33 |
Stock issued during the period, shares, Employee Stock Purchase Plans | 1,126 | 843 |
Treasury Stock [Member] | ||
Repurchase of shares | 33,668 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Cash flows from operating activities | $ 582 | $ 4,226 |
Cash flows from investing activities: | ||
Proceeds from sales of available-for-sale securities | 42,791 | 34,475 |
Purchases of available-for-sale securities | (29,941) | (41,884) |
Proceeds from of certificates of deposit | 249 | |
Proceeds from sale of OREO | 358 | 266 |
Acquisition, net of cash received | (24,660) | |
Net increase in loans and leases | (23,556) | (4,724) |
Purchases of premises and equipment | (3,943) | (37) |
Net cash provided by (used in) investing activities | (38,702) | (11,904) |
Cash flows from financing activities | ||
Net increase (decrease) in deposits | 17,449 | (902) |
Proceeds from other borrowings | 40,260 | 3,609 |
Principal payments on other borrowings | (18,774) | |
Purchase of treasury shares | (633) | |
Proceeds from sale of treasury shares | 25 | 18 |
Cash dividends paid | (1,177) | (1,086) |
Net cash provided by (used in) financing activities | 37,783 | 1,006 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (337) | (6,672) |
Cash and cash equivalents at beginning of period | 14,186 | 22,922 |
Cash and cash equivalents at end of period | 13,849 | 16,250 |
Cash paid during the period for: | ||
Interest | 1,899 | 1,597 |
Federal income taxes | 425 | 610 |
Non-cash investing activities: | ||
Transfer of loans to other real estate owned | 241 | 644 |
Change in net unrealized gain or loss on available-for-sale securities | $ 1,912 | $ 2,217 |
Consolidated Financial Statemen
Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2017 | |
Consolidated Financial Statements [Abstract] | |
Consolidated Financial Statements | NOTE 1 – CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements of United Bancshares, Inc. and subsidiaries (the “Corporation”) have been prepared without audit and in the opinion of management reflect all adjustments (which include normal recurring adjustments) necessary to present fairly such information for the periods and dates indicated. Since the unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q, they do not contain all information and footnotes typically included in financial statements prepared in conformity with generally accepted accounting principles. Operating results for the nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 201 7 . The balance sheet as of December 31, 201 6 is derived from completed audited consolidated financial statements with footnotes, which are included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 201 6 . The consolidated financial statements include the accounts of the Corporation and its wholly-owned subsidiary, The Union Bank Company (the “Bank”). The Bank has formed a wholly-owned subsidiary, UBC Investments, Inc. (“UBC”), to hold and manage its securities portfolio. The operations of UBC are located in Wilmington, Delaware. The Bank has also formed a wholly-owned subsidiary, UBC Property, Inc. (“UBC Property”) , to hold and manage certain property. All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and reporting policies of the Corporation conform to generally accepted practices within the banking industry. The Corporation considers all of its principal activities to be banking related. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | NOTE 2 – NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606): Summary and Amendments that Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs—Contracts with Customers (Subtopic 340-40). The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the Codification. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2017. The guidance does not apply to revenues associated with financial instruments, including loans and securities that are accounted for under U.S. GAAP. The Corporation does not expect the guidance will have a material impact on its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, amending ASU Subtopic 825-10. The amendments in this update make targeted improvements to generally accepted accounting principles (GAAP) as follows: 1) r equire equity investments to be measured at fair value with changes in fair value recognized in net income; 2) s implify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; 3) e liminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; 4) e liminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; 5) r equire public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; 6) r equire an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; 7) r equire separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and 8) c larify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments in this update are effective for fiscal years beginning after December 15, 2017. The Corporation has begun gathering data and is currently assessing the impact that this guidance will have on its consolidated financial statements . In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The ASU requires a lessee to recognize on the balance sheet assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. Unlike current GAAP, which requires that only capital leases be recognized on the balance sheet, the ASC requires that both types of leases by recognized on the balance sheet. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2018. Early application is permitted. The adoption of this guidance is not expected to have a material impact on the C orporation’ s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718). ASU 2016-09 is intended to simplify the accounting for share-based payment transactions, including income tax consequences, classification of awards as either assets or liabilities and classification in the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2017 and interim periods within annual periods beginning after December 15, 2018. Early adoption is permitted. The Corporation does not expect the adoption of ASU 2016-09 to have a material impact on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The ASU requires an organization to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. Organizations will continue to use judgment to determine which loss estimation method is appropriate for their circumstances. Additionally, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2019. Management has begun gathering data and evaluating the process for calculating the allowance for loan losses under the requirements of ASU 2016-13, but has not yet determined the expected impact the adoption of ASU 2016-13 will have on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The guidance in this update eliminates the Step 2 from the goodwill impairment test. For public companies, this update will be effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual goodwill impairment test with a measurement date after January 1, 2017. The Corporation does not expect the guidance to have a material impact on the consolidated financial statements . |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2017 | |
Acquisition [Abstract] | |
Acquisition | NOTE 3 – ACQUISITION On September 8, 2017, after receiving full board of director and regulatory approval, the Corporation completed the acquisition of Benchmark Bancorp, Inc. (“Benchmark”) and its wholly-owned subsidiary, Benchmark Bank, in an all cash transaction. Under the terms of the merger agreement, shareholders of Benchmark received approximately $8.59 per share for each outstanding common share. Immediately following the merger of Benchmark with and into the Corporation , Benchmark Bank merged with and into the Bank. As a result of the acquisition, the two full-service banking centers of Benchmark Bank located in Gahanna and Westerville, Ohio, became full service offices of the Bank, and one mortgage loan production office located in Gahanna Ohio, became a mortgage loan production office of the Bank. With the acquisition, the Corporation has expanded its geographical footprint in an effort to help continue the growth of the Corporation’s overall profile in size and in earnings. The results of operations of Benchmark are included in the Corporation’s consolidated operating results for the period subsequent to the date of the transaction. Acquisition-related costs of $1,115,000 and $1,271,000 , respectively, for the quarter and nine month periods ended September 30, 2017, are included in other non-interest operating expenses in the accompanying consolidated statements of income for the quarter and nine month periods ended September 30, 2017. Goodwill of $15,360,000 arising from the acquisition consists largely of synergies and the cost savings expected to result from the combining of operations and is not expected to be deductible for income tax purposes. Consideration paid and the estimated fair value of the assets acquired and the liabilities assumed at the acquisition date are as follows (dollars in thousands): Cash and cash equivalents $ 6,092 Restricted stock 472 Loans, including loans held for sale 98,804 Premises and equipment 2,483 Core deposit intangible asset 146 Other real estate owned 141 Other assets, including accrued interest receivable 5,460 Total assets acquired 113,598 Deposits 95,545 Other liabilities 2,661 Total liabilities assumed 98,206 Net identifiable assets 15,392 Goodwill 15,360 Total cash paid $ 30,752 The acquisition was partially funded through other borrowings, as more fully described in Note 6. Explanatory Note: The following unaudited pro forma condensed combined consolidated financial statements, as well as the consolidated financial statements of Benchmark as of and for the year ended December 31, 2016, filed herewith as Exhibit 99.2 are intended to satisfy the Corporation’s reporting obligation under Item 9.01 of Form 8-K. Unaudited Pro Forma Condensed Combined Consolidated Financial Statements The following unaudited pro forma condensed combined consolidated balance sheet as of June 30, 2017 gives effect to the acquisition as if the merger occurred on that date. T he unaudited pro forma condensed combined consolidated statement of income for the six months ended June 30, 2017 and the year ended December 31, 2016 give effect to the acquisition, as if the merger had occurred on January 1, 2016 . The pro forma adjustments are based on estimates made for the purpose of preparing these pro forma financial statements and are described in the accompanying Notes. The Corporation’s management believes that the estimates used in these pro forma financial statements are reasonable under the circumstances. The unaudited pro forma condensed combined consolidated financial information has been prepared based on the purchase method of accounting. The unaudited pro forma condensed combined consolidated financial statements included herein are presented for information purposes only. The unaudited pro forma condensed combined consolidated balance sheet as of June 30, 2017 is not necessarily indicative of the combined financial position had the merger been effective at that date. The unaudited pro forma condensed combined consolidated statements of income are not necessarily indicative of the results of operations that would have occurred had the merger been effective at the beginning of the period indicated, or of the future results of operations of the Corporation. These pro forma financial statements do not include the effects of any potential cost savings which management believes will result from operating Benchmark Bank as branches and combining certain operating procedures. It also does not necessarily reflect what the historical results of the combined company would have been had the companies been combined during this period. (in thousands except per share data) June 30, 2017 Historical United Historical Benchmark Pro Forma Adjustments Debit/(Credit) Footnote Reference Pro Forma Combined (Unaudited) ASSETS: Cash and due from banks $ 14,155 $ 9,982 $ (5,897) (1) $ 18,240 Fed Funds sold - 775 - 775 Securities, available-for-sale 183,975 1,621 - 185,596 Loans, gross 385,777 105,798 (3,046) (2) 488,529 Allowance for loan losses (2,829) (1,088) 1,088 (3) (2,829) Premises and equipment 17,008 2,409 142 (4) 19,559 Other real estate owned 344 351 (211) (5) 484 Federal Home Loan Bank stock 4,829 473 - 5,302 Bank owned life insurance 17,548 - - 17,548 Other intangible assets 707 - 146 (6) 853 Goodwill 10,072 - 14,586 (7) 24,658 Accrued interest and other assets 5,092 4,029 618 (8) 9,739 Total Assets $ 636,678 $ 124,350 $ 7,426 $ 768,454 LIABILITIES: Deposits $ 537,303 $ 97,862 $ 418 (9) $ 635,583 Other borrowings 7,571 8,000 25,000 (1) 40,571 Trust preferred 12,823 - - 12,823 Accrued expenses and other liabilities 3,425 641 - 4,066 Total Liabilities $ 561,122 $ 106,503 $ 25,418 $ 693,043 EQUITY: Common stock $ 3,761 $ 3,115 $ (3,115) (10) $ 3,761 Preferred stock - 2 (2) (10) - Warrants - 38 (38) (10) - Additional paid-in capital - Common - 20,923 (20,923) (10) - Additional paid-in capital - Preferred - 1,605 (1,605) (10) - Surplus 14,712 - - 14,712 Retained earnings (accumulated deficit) 64,511 (7,814) 7,669 (11) 64,366 Treasury stock (7,719) - - (7,719) Accumulated other comprehensive income (loss) 291 (22) 22 (12) 291 Total Stockholders' Equity 75,556 17,847 (17,992) 75,411 Total Liabilities & Stockholders' Equity $ 636,678 $ 124,350 $ 7,426 $ 768,454 (in thousands except per share data) For the Six months Ended June 30, 2017 Historical United Historical Benchmark Pro Forma Adjustments Debit/(Credit) Footnote Reference Pro Forma Combined (Unaudited) Interest Income $ 11,389 $ 3,128 $ 187 (13) $ 14,704 Interest Expense 1,260 434 158 (14) 1,852 Net interest income 10,129 2,694 29 12,852 Credit for loan losses (350) (96) - (446) Net interest income after provision for loan losses 10,479 2,790 29 13,298 Non-interest income 2,385 2,651 - 5,036 Non-interest expense 9,522 5,028 15 (15)(16) 14,565 Income before income taxes 3,342 413 14 3,769 Income tax provision 763 207 5 (17) 975 Net Income $ 2,579 $ 206 $ 9 $ 2,794 Earnings per share Basic $ 0.79 $ 0.07 Diluted $ 0.79 $ 0.07 Pro Forma earnings per share Basic (18) $ 0.86 Diluted (18) $ 0.86 (in thousands except per share data) For the Year Ended December 31, 2016 Historical United Historical Benchmark Pro Forma Adjustments Debit/(Credit) Footnote Reference Pro Forma Combined (Unaudited) Interest Income $ 21,627 $ 6,082 $ 334 (13) $ 28,043 Interest Expense 2,231 700 318 (14) 3,249 Net interest income 19,396 5,382 16 24,794 Credit for loan losses (750) (256) - (1,006) Net interest income after provision for loan losses 20,146 5,638 16 25,800 Non-interest income 4,903 6,473 - 11,376 Non-interest expense 17,784 10,636 29 (15)(16) 28,449 Income before income taxes 7,265 1,475 (13) 8,727 Income tax provision 1,744 (3,652) (5) (17) (1,913) Net Income $ 5,521 $ 5,127 $ (8) $ 10,640 Earnings per share Basic $ 1.68 $ 1.65 Diluted $ 1.68 $ 1.65 Pro Forma earnings per share Basic (18) $ 3.43 Diluted (18) $ 3.43 PRELIMINARY PURCHASE ACCOUNTING ALLOCATIONS The unaudited pro forma condensed combined consolidated financial information for the merger includes an unaudited pro forma condensed combined balance sheet as of June 30, 2017 assuming the merger was completed on June 30, 2017. The unaudited pro forma condensed combined consolidated statements of income is for the six months ended June 30, 2017. (in thousands) June 30, 2017 Footnote Reference Benchmark Bancorp shareholders' equity - June 30, 2017 plus/(minus) estimated fair value adjustments: $ 17,847 Loan fair value $ (3,046) (2) Allowance for loan losses 1,088 (3) Loans, net (1,958) Building 142 (4) OREO (211) (5) Core deposit intangible asset 146 Deferred tax asset, net 618 (8) Deposits - fixed maturity (418) (9) Total fair value adjustments $ (1,681) Estimated fair value of Benchmark Bancorp net assets at June 30, 2017 16,166 Total consideration paid to Benchmark Bancorp shareholders (**) 30,752 Goodwill $ 14,586 ** The purchase price is based on estimated total cash consideration of $30,752. A. Notes: (1) Cash consideration of $30,752,000 paid to Benchmark Bancorp’s shareholders plus estimated transaction costs of $145,000 net of tax, less additional borrowings of $25,000,000 . (2) The fair value of Benchmark’s loan portfolio acquired in the transaction is estimated by United to be less than book value. Based on management’s judgment, United applied a discount to the loan portfolio to estimate the fair value adjustment as of June 30, 2017. The adjustment reflects United’s estimates of both market interest rate differential and credit considerations on pools of loans and the potential adjustments required by ASC 310-30, “Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality” for applicable individual loans. The portion of the fair market value adjustment that is accretable is assumed to amortize into interest income on a level yield basis over the estimated remaining life of the loans. (3) Elimination of Benchmark’s allowance for loan losses. (4) Adjusts bank premises to appraised value at June 30, 2017. (5) Adjusts the value of OREO at June 30, 2017 to estimated fair value. (6) Represents the establishment of the estimated core deposit intangible. The core deposit intangible is assumed to amortize into non-interest expense over 10 years, using accelerated methods. (7) Goodwill estimate based on the excess of the purchase price over the estimated fair value of the net assets acquired. (8) Tax effect of estimated fair market value adjustments. (9) Estimated fair market value adjustment related to deposits and is assumed to amortize into interest expense on a level yield basis over the estimated remaining maturity of the deposits. (10) Reflects the elimination of Benchmark’s common and preferred stock, including related additional paid-in capital, as well as warrants. (11) Reflects the elimination of Benchmark’s accumulated deficit of $7,814,000 , net of after-tax transaction costs of $145,000 . (12) Reflects the elimination of Benchmark’s accumulated other comprehensive loss of $22,000 . (13) Interest income impact of loan discount accretion on purchase accounting adjustment, net of lost earnings on cash consideration paid and net merger costs, after tax. (14) Interest expense on other borrowings incurred to facilitate the transaction, net of estimated fair value adjustment related to deposits assumed to amortize into interest expense on an accelerated basis over 5 years. (15) Reflects additional depreciation on fair value adjustment of bank premises. (16) Reflects core deposit intangible amortization over 10 years, using accelerated methods. (17) Represents the income tax effect ( 34% ) of the impact of pro forma adjustments on income before tax. (18) Basic and diluted pro forma earnings per share for the six months ended June 30, 2017 have been computed based on 3,267,020 basic and 3,271,477 diluted shares, respectively. Basic and diluted pro forma earnings per share for the year ended December 31, 2016 have been computed based upon 3,289,497 basic and diluted shares . |
Securities
Securities | 9 Months Ended |
Sep. 30, 2017 | |
Securities [Abstract] | |
Securities | NOTE 4 - SECURITIES The amortized cost and fair value of available-for-sale securities as of September 30, 2017 and December 31, 2016 are as follows: (in thousands) September 30, 2017 December 31, 2016 Amortized cost Fair value Amortized cost Fair value Available-for-sale: Obligations of states and political subdivisions $ 69,796 $ 70,800 $ 70,757 $ 70,624 Mortgage-backed 107,342 106,948 119,758 118,595 Other 1,002 992 1,002 986 Total $ 178,140 $ 178,740 $ 191,517 $ 190,205 A summary of gross unrealized gains and losses on available-for-sale securities as of September 30, 2017 and December 31, 2016 follows: September 30, 2017 December 31, 2016 Gross unrealized gains Gross unrealized losses Gross unrealized gains Gross unrealized losses Available-for-sale: Obligations of states and political subdivisions $ 1,210 $ 206 $ 644 $ 777 Mortgage-backed 603 997 769 1,932 Other - 10 - 16 Total $ 1,813 $ 1,213 $ 1,413 $ 2,725 |
Loans and Leases
Loans and Leases | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Leases [Abstract] | |
Loans and Leases | NOTE 5 – LOANS AND LEASES The following tables present the activity in the allowance for loan and lease losses by portfolio segment for the periods ending September 30, 2017 and 2016: (in thousands) Commercial Commercial and multi-family real estate Residential 1 – 4 family real estate Consumer Total Balance at December 31, 2016 $ 896 $ 1,876 $ 542 $ 31 $ 3,345 Provision (credit) charged to expenses (374) (65) 65 24 (350) Losses charged off (36) (553) (45) (23) (657) Recoveries 78 381 12 8 479 Balance at September 30, 2017 $ 564 $ 1,639 $ 574 $ 40 $ 2,817 Commercial Commercial and multi-family real estate Residential 1 – 4 family real estate Consumer Total Balance at December 31, 2015 $ 893 $ 2,540 $ 373 $ 28 $ 3,834 Provision (credit) charged to expenses 163 (904) 42 (1) (700) Losses charged off (86) (11) (24) (8) (129) Recoveries 28 285 62 8 383 Balance at September 30, 2016 $ 998 $ 1,910 $ 453 $ 27 $ 3,388 The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans and leases by portfolio segment and based on impairment method for the periods ending September 30, 2017 and December 31, 2016: (in thousands) September 30, 2017 Commercial Commercial and multi-family real estate Residential 1 – 4 family real estate Consumer Total Allowance for loan and lease losses: Attributable to loans and leases individually evaluated for impairment $ 98 $ - $ - $ - $ 98 Collectively evaluated for impairment 466 1,639 574 40 2,719 Total allowance for loan and lease losses $ 564 $ 1,639 $ 574 $ 40 $ 2,817 Loans and leases: Individually evaluated for impairment $ 490 $ 396 $ - $ - $ 886 Acquired with deteriorated credit quality - 915 227 - 1,142 Collectively evaluated for impairment 64,284 301,085 121,180 4,512 491,061 Total ending loans and leases balance $ 64,774 $ 302,396 $ 121,407 $ 4,512 $ 493,089 December 31, 2016 Commercial Commercial and multi-family real estate Residential 1 – 4 family real estate Consumer Total Allowance for loan and lease losses: Attributable to loans and leases individually evaluated for impairment $ 399 $ 619 $ - $ - $ 1,018 Collectively evaluated for impairment 497 1,257 542 31 2,327 Total allowance for loan and lease losses $ 896 $ 1,876 $ 542 $ 31 $ 3,345 Loans and leases: Individually evaluated for impairment $ 937 $ 1,980 $ - $ - $ 2,917 Acquired with deteriorated credit quality - 573 51 - 624 Collectively evaluated for impairment 62,782 216,933 88,818 4,012 372,545 Total ending loans and leases balance $ 63,719 $ 219,486 $ 88,869 $ 4,012 $ 376,086 Impaired loans and leases were as follows as of September 30, 2017 and December 31, 2016: (in thousands) September 30, 2017 December 31, 2016 Loans and leases with no allowance for loan and lease losses allocated $ 396 $ - Loans and leases with allowance for loan and lease losses allocated 490 2,917 Total impaired loans and leases 886 2,917 Amount of the allowance allocated to impaired loans and leases $ 98 $ 1,018 No a dditional funds are committed to be advanced in connection with impaired loans and leases. The average recorded investment in impaired loans and leases (excluding loans and leases acquired with deteriorated credit quality) for the nine month periods ended September 30, 2017 and 201 6 was approximately $ 1.8 million a nd $4.5 million , respectively. There wa s $86,000 and $255,000 in interest income recognized by the Corporation on impaired loans and leases on an accrual or cash basis for the nine month periods ended September 30, 2017 and 201 6 , respectively. The following table presents loans and leases individually evaluated for impairment by class of loans as of September 30, 2017 and December 31, 2016: (in thousands) September 30, 2017 December 31, 2016 Recorded investment Allowance for loan and lease losses allocated Recorded investment Allowance for loan and lease losses allocated With no related allowance recorded: Commercial $ - $ - $ - $ - Commercial and multi-family real estate 396 - - - Agriculture - - - - Agricultural real estate - - - - Consumer - - - - Residential 1-4 family real estate - - - - With an allowance recorded: Commercial 490 98 937 399 Commercial and multi-family real estate - - 1,980 619 Agriculture - - - - Agricultural real estate - - - - Consumer - - - - Residential 1-4 family real estate - - - - Total $ 886 $ 98 $ 2,917 $ 1,018 The following tables present the recorded investment in nonaccrual loans and leases, loans and leases past due over 90 days still on accrual and troubled debt restructurings by class of loans as of September 30, 2017 and December 31, 2016: (in thousands) September 30, 2017 Nonaccrual Loans and leases past due over 90 days still accruing Troubled Debt Restructurings Commercial $ 618 $ - $ 27 Commercial real estate 1,573 - 604 Agricultural real estate 233 - - Agriculture - - - Consumer - - - Residential: 1 – 4 family 726 199 436 Home equity - - - Total $ 3,150 $ 199 $ 1,067 (in thousands) December 31, 2016 Nonaccrual Loans and leases past due over 90 days still accruing Troubled Debt Restructurings Commercial $ 1,295 $ - $ 29 Commercial real estate 3,462 - 722 Agricultural real estate 277 - - Agriculture - 73 - Consumer 3 - - Residential: 1 – 4 family 966 81 457 Home equity - - - Total $ 6,003 $ 154 $ 1,208 The nonaccrual balances in the table s above include troubled debt restructurings that have been classified as nonaccrual. The following table presents the aging of the recorded investment in past due loans and leases as of September 30, 2017 by class of loans and leases: (in thousands) 30 – 59 days past due 60 – 89 days past due Greater than 90 days past due Total past due Loans and leases not past due Total Commercial $ 113 $ - $ 74 $ 187 $ 51,550 $ 51,737 Commercial real estate 125 23 516 664 271,771 272,435 Agriculture 60 - - 60 12,977 13,037 Agricultural real estate 10 - - 10 29,951 29,961 Consumer - 3 - 3 4,509 4,512 Residential real estate 2,970 29 297 3,296 118,111 121,407 Total $ 3,278 $ 55 $ 887 $ 4,220 $ 488,869 $ 493,089 The following table presents the aging of the recorded investment in past due loans and leases as of December 31, 2016 by class of loans and leases: (in thousands) 30 – 59 days past due 60 – 89 days past due Greater than 90 days past due Total past due Loans and leases not past due Total Commercial $ 326 $ 71 $ 79 $ 476 $ 49,988 $ 50,464 Commercial real estate 103 147 553 803 192,830 193,633 Agriculture 227 - - 227 13,026 13,253 Agricultural real estate - - 5 5 25,850 25,855 Consumer 10 2 - 12 4,000 4,012 Residential real estate 1,770 484 462 2,716 86,153 88,869 Total $ 2,436 $ 704 $ 1,099 $ 4,239 $ 371,847 $ 376,086 Credit Quality Indicators: The Corporation categorizes loans and leases into risk categories based on relevant information about the ability of borrowers to service their debt , such as: current final financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans and leases individually by classifying the loans and leases as to the credit risk. This analysis generally includes loans and leases with an outs tanding balance greater than $50 0,000 and non-homogenous loans and leases , such as commercial and commercial real estate loans and leases . This analysis is performed on a quarterly basis. The Corporation uses the following definitions for risk ratings: · Special Mention: Loans and leases which possess some credit deficiency or potential weakness which deserve s close attention, but which do not yet warrant substandard classification. Such loans and leases pose unwarranted financial risk that, if not corrected, could weaken the loan or lease and increase risk in the future. The key distinctions of a Special Mention classification are that (1) it is indicative of an unwarranted level of risk, and (2) weaknesses are considered "potential", versus "defined", impairments to the primary source of loan repayment. · Substandard: These loans and leases are inadequately protected by the current sound net worth and paying ability of the borrower. Loans and leases of this type will generally display negative financial trends such as poor or negative net worth, earnings or cash flow. These loans and leases may also have historic and/or severe delinquency problems, and Corporation management may depend on secondary repayment sources to liquidate these loans and leases . The Corporation could sustain some degree of loss in these loans and leases if the weaknesses remain uncorrected. · Doubtful: Loans and leases in this category display a high degree of loss, although the amount of actual loss at the time of classification is undeterminable. This should be a temporary category until such time that actual loss can be identified, or improvements made to reduce the seriousness of the classification. Loans and leases not meeting the previous criteria that are analyzed individually as part of the above described process are considered to be pass rated loans and leases . Loans and leases listed as not rated are generally either less than $500,000 or are included in groups of homogenous loans and leases . As of September 30, 2017 and December 31, 2016, and based on the most recent analysis performed, the risk category of loans by class of loans and leases is as follows: (in thousands) September 30, 2017 Pass Special Mention Substandard Doubtful Not rated Commercial $ 43,832 $ - $ 1,998 $ - $ 18,944 Commercial and multi- family real estate 224,970 2,390 2,449 - 72,587 Residential 1 - 4 family 11,056 - 124 - 110,227 Consumer - - - - 4,512 Total $ 279,858 $ 2,390 $ 4,571 $ - $ 206,270 December 31, 2016 Pass Special Mention Substandard Doubtful Not rated Commercial $ 41,233 $ - $ 3,666 $ - $ 18,819 Commercial and multi- family real estate 162,399 4,239 3,850 - 48,999 Residential 1 - 4 family 210 - - - 88,659 Consumer - - - - 4,012 Total $ 203,842 $ 4,239 $ 7,516 $ - $ 160,489 The Corporation considers the performance of the loan and lease portfolio and its impact on the allowance for loan and lease losses. For all loan classes that are not rated, the Corporation also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. Generally, all loans and leases not rated that are 90 days past due or are classified as nonaccrual and collectively evaluated for impairment, are considered nonperforming. The following table presents the recorded investment in all loans and leases that are not risk rated, based on payment activity as of September 30, 2017 and December 31, 2016: : (in thousands) September 30, 2017 Commercial Commercial and multi-family real estate Residential 1-4 family Consumer Performing $ 18,870 $ 72,127 $ 109,930 $ 4,512 Nonperforming 74 460 297 - Total $ 18,944 $ 72,587 $ 110,227 $ 4,512 December 31, 2016 Commercial Commercial and multi-family real estate Residential 1-4 family Consumer Performing $ 18,740 $ 48,441 $ 88,197 $ 4,012 Nonperforming 79 558 462 - Total $ 18,819 $ 48,999 $ 88,659 $ 4,012 Modifications: The Corporation’s loan and lease portfolio also includes certain loans and leases that have been modified in a Troubled Debt Restructuring (TDR), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Corporation’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. All TDRs are also classified as impaired loans and leases . When the Corporation modifies a loan or lease, management evaluates any possible concession based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, except when the sole (remaining) source of repayment for the loan or lease is the operation or liquidation of the collateral. In these cases, management uses the current fair value of the collateral, less selling costs, instead of discounted cash flows. If management determines that the value of the modified loan or lease is less than the recorded investment in the loan or lease (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), an impairment is recognized through a specific reserve in the allowance or a direct write down of the loan or lease balance if collection is not expected. There were no modifications for TDR loans and leases, or troubled debt restructurings for which there was a payment default during the nine month period ended September 30, 2017. In addition to the Benchmark transaction describe in Note 3, the Corporation acquired The Ohio State Bank (OSB) in November 2014. As a result of these acquisitions, the Corporation has loans and leases, for which there was at acquisition, evidence of deterioration of credit quality since origination and for which it was probable at acquisition, that all contractually required payments would not be collected. The following is information related to loans and leases acquired in these transactions, including purchased impaired loans: The Ohio State Bank (in thousands) Contractual Principal Accretable Carrying Receivable Difference Amount Purchased Performing Loans and Leases Balance at December 31, 2016 $ 34,416 $ (1,476) $ 32,940 Change due to payments received (6,285) 494 (5,791) Transfer to foreclosed real estate - - - Change due to loan charge-off - - - Balance at September 30, 2017 $ 28,131 $ (982) $ 27,149 Contractual Non Principal Accretable Carrying Receivable Difference Amount Purchased Impaired Loans and Leases Balance at December 31, 2016 $ 1,520 $ (896) $ 624 Change due to payments received (288) 176 (112) Transfer to foreclosed real estate (433) 297 (136) Change due to loan charge-off (208) 107 (101) Balance at September 30, 2017 $ 591 $ (316) $ 275 Benchmark Bank (in thousands) Contractual Principal Accretable Carrying Receivable Difference Amount Purchased Performing Loans and Leases Balance at September 8, 2017 $ 96,914 $ (2,273) $ 94,641 Change due to payments received (34) 1 (33) Transfer to foreclosed real estate - - - Change due to loan charge-off - - - Balance at September 30, 2017 $ 96,880 $ (2,272) $ 94,608 Contractual Non Principal Accretable Carrying Receivable Difference Amount Purchased Impaired Loans and Leases Balance at September 8, 2017 $ 1,641 $ (771) $ 870 Change due to payments received - - - Transfer to foreclosed real estate - - - Change due to loan charge-off - - - Balance at September 30, 2017 $ 1,641 $ (771) $ 870 A $101,000 provision for loan and lease losses was recognized during the nine month period ended September 30, 2017 related to one purchase credit impaired commercial loan from the OSB acquisition for which the sheriff’s appraisal was substantially below the expected collateral value. There was no provision for loan and lease losses recognized during the nine month period ended September 30, 2016 related to the acquired loans and leases as there was no significant change to the credit quality of the loans and leases during the period. There was no provision for loan and lease losses recognized during the period ended September 30, 2017 related to loans acquired in the Benchmark acquisition. |
Other Borrowings
Other Borrowings | 9 Months Ended |
Sep. 30, 2017 | |
Other Borrowings [Abstract] | |
Other Borrowings | NOTE 6 – OTHER BORROWINGS During September 2017, the Bank borrowed $25,000,000 and issued secured notes to the Federal Home Loan Bank and the Corporation borrowed $10,000,000 to facilitate the acquisition described in Note 3. Other borrowings consists of the following at September 30, 2017 and December 31, 2016: (in thousands) September 30, December 31, 2017 2016 Federal Home Loan Bank borrowings: Secured notes, with interest at .74% , due March, 2017 $ - $ 18,774 Secured note, with interest at 1.27% , due December, 2017 5,160 - Secured note, with interest at 0.0% , due October, 2018 100 - Secured note, with interest at 1.56% , due September, 2021 7,000 - Secured note, with interest at 1.72% , due September, 2020 6,000 - Secured note, with interest at 1.86% , due September, 2021 6,000 - Secured note, with interest at 1.97% , due September, 2022 6,000 - United Bankers Bank Note payable, with interest at 4.875% , due September, 2022 10,000 - Total other borrowings $ 40,260 $ 18,774 The United Bankers Bank note requires quarterly interest-only payments commencing December 1, 2017 , with quarterly $250,000 principal payments plus interest, commencing December 1, 2018 and any remaining unpaid principal due September 1, 2022 . Federal Home Loan Bank borrowings are secured by Federal Home Loan Bank stock and eligible mortgage loans approximating $98,300,000 and $86,970,000 at September 30, 2017 and December 31, 2016 respectively. The note payable is secured by all outstanding shares of the Bank. |
Junior Subordinated Deferrable
Junior Subordinated Deferrable Interest Debentures | 9 Months Ended |
Sep. 30, 2017 | |
Junior Subordinated Deferrable Interest Debentures [Abstract] | |
Junior Subordinated Deferrable Interest Debentures | NOTE 7 – JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES The Corporation has formed and invested $ 300,000 in a business trust, United (OH) Statutory Trust (“United Trust”) which is not consolidated by the Corporation. United Trust issued $10,000,000 of trust preferred securities, which are guaranteed by the Corporation, and are subject to mandatory redemption upon payment of the debentures. United Trust used the proceeds from the issuance of the trust preferred securities, as well as the Corporation’s capital investment, to purchase $10,300,000 of junior subordinated deferrable interest debentures issued by the Corporation. The debentures have a stated maturity date of March 26, 2033 . As of March 26, 2008, and quarterly thereafter, the debentures may be shortened at the Corporation’s option. Interest is payable quarterly at a floating rate adjustable quarterly and equal to 315 basis points over the 3-month LIBOR , amounting to 4.16% at September 30, 2017 and 4.15% at December 31, 2016 . The Corporation has the right, subject to events in default, to defer payments of interest on the debentures by extending the interest payment period for a period not exceeding 20 consecutive quarterly periods. The Corporation assumed $3,093,000 of trust preferred securities through t he OSB acquisition with $3,000,000 of the liability guaranteed by the Corporation and the remaining $93,000 secured by an investment in the trust preferred securities. The trust preferred securities carrying value as of September 30, 2017 and December 31, 201 6 wa s $2,532,000 and $2,506,000, respectively. The difference between the principal owed and the carrying value is due to the below- market interest rate on the debentures. The debentures have a stated maturity date of April 23, 2034 . Interest is at a floating rate adjustable quarterly and equal to 285 basis points over the 3-month LIBOR , amounting t o 4.48% a t September 30, 2017 and 3.73% at December 31, 2016 . Each issue of the trust preferred securities carries an interest rate identical to that of the related debenture. The securities have been structured to qualify as Tier I capital for regulatory purposes and the dividends paid on such are tax deductible. However, under Federal Reserve Board guidelines, the securities cannot be used to constitute more than 25% of the Corporation’s core Tier I capital inclusive of these securities. Interest expense on the debentures amounted t o $411,000 a nd $365,000 for the nine month periods ended September 30, 2017 and 201 6 , respectively, and is included in interest expense-other borrowings in the accompanying consolidated statements of income. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value [Abstract] | |
Fair Value Measurements | NOTE 8 - FAIR VALUE MEASUREMENTS ASC 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are independent, knowledgeable, and both able and willing to transact. ASC 820-10 requires the use of valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, ASC 820-10 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access at the measurement date. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect the Corporation’s own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include the Corporation’s own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment. Financial assets (there were no financial liabilities) measured at fair value on a recurring basis at September 30, 2017 and December 31, 201 6 include available-for-sale securities, which are valued using Level 2 inputs except for one other security which is valued using Level 3 inputs that was redeemed during the second quarter 2017, as well as mortgage servicing rights, amounting to $1,231,000 at September 30, 2017 and $1,247,000 at December 31, 201 6 , which are valued using Level 3 inputs. Financial assets (there were no financial liabilities) measured at fair value on a non-recurring basis at September 30, 2017 and December 31, 201 6 include impaired loans net of specific reserves , approximating $788,000 a t September 30, 2017 an d $1 ,899,000 at December 31, 201 6, all of which are valued using Level 3 inputs. There were no financial instruments measured at fair value that moved to a lower level in the fair value hierarchy during the period ended September 30, 2017 , due to the lack of observable quotes in inactive markets for those instruments at September 30, 2017 . The tables below present a reconciliation and income statement classification of gains and losses for mortgage servicing rights, which are measured at fair value on a recurring basis using significant unobservable inputs (Level 3), and certain securities which are valued using Level 3 inputs, for the nine month period ended September 30, 2017 and year ended December 31, 2016: (in thousands) September 30, December 31, 2017 2016 Mortgage Servicing Rights Balance at beginning of period $ 1,247 $ 1,181 Gains or losses, including realized and unrealized: Purchases, issuances, and settlements 138 273 Disposals - amortization based on loan payments and payoffs (97) (195) Changes in fair value (57) (12) Balance at end of period $ 1,231 $ 1,247 Securities valued using Level 3 inputs Balance at beginning of period $ 2,238 $ 2,389 Principal payments received (2,238) (151) Changes in fair value - - Balance at end of period $ - $ 2,238 A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valua tion hierarchy, and disclosure of unobservable inputs follows. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the Corporation’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Corporation’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Corporation’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Securities Available-for-Sale Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would typically include government bonds and exchange traded equities. If quoted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include U. S. Government and agencies securities , municipal bonds, mortgage-backed securities, and asset-backed securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy . There were no gains or losses relating to securities available-for-sale included in earnings before income taxes that were attributable to changes in fair values of securities held at September 30, 2017 and December 31, 2016. Impaired Loans The Corporation does not record impaired loans at fair value on a recurring basis. However, periodically, a loan is considered impaired and is reported at the fair value of the underlying collateral less estimated cost to sell, if repayment is expected solely from collateral. Collateral values are estimated using Level 2 inputs, including recent appraisals and Level 3 inputs based on customized discounting criteria such as additional appraisal adjustments to consider deterioration of value subsequent to appraisal date and estimated cost to sell. Additional appraisal adjustments range between 15% and 35% of appraised value, and estimated selling cost ranges between 10% and 20% of the adjusted appraised value. Due to the significance of the Level 3 inputs, impaired loans fair values have bee n classified as Level 3. Mortgage Servicing Rights The Corporation records mortgage servicing rights at estimated fair value based on a discounted cash flow model which includes discou nt rates between 9% and 11% , i n addition to prepayment, internal rate of return, servicing costs, inflation rate of servicing costs and earnings rate assumptions that are considered to be unobservable inputs. Due to the significance of the Level 3 inputs, mortgage servicing rights have been classified as Level 3. Other Real Estate Owned The Corporation values other real estate owned at th e estimated fair value of the underlying collateral less appraisal adjustments between 10% and 70% of appraised value, and expected selling costs between 10% and 20% of adjusted appraised value. Such values are estimated primarily using appraisals and reflect a market value approach. Due to the significance of the Level 3 inputs, other real estate owned has been classified as Level 3. Certain other financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances, for example, when there is evidence of impairment. Financial assets and financial liabilities, excluding impaired loans and other real estate owned, measured at fair value on a nonrecurring basis were not significant at September 30, 2017 and December 31, 201 6 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value [Abstract] | |
Fair Value of Financial Instruments | NOTE 9 – FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts and estimated fair values of recognized financial instruments at September 30, 2017 and December 31, 2016 were as follows: (in thousands) September 30, 2017 December 31, 2016 Carrying amount Estimated value Carrying amount Estimated value Input Level FINANCIAL ASSETS Cash and cash equivalents $ 13,849 $ 13,849 $ 14,186 $ 14,186 1 Securities, including FHLB stock 184,042 184,042 195,035 195,035 2,3 Certificates of deposit 1,245 1,245 1,494 1,494 2 Loans held for sale 6,993 6,993 1,510 1,510 3 Net loans and leases 490,272 489,027 372,741 371,493 3 Mortgage servicing rights 1,231 1,231 1,247 1,247 3 $ 697,632 $ 696,387 $ 586,213 $ 584,965 FINANCIAL LIABILITIES Deposits Maturity $ 176,599 175,618 $ 129,460 $ 128,592 3 Non-maturity 461,075 461,075 395,220 395,220 1 Other borrowings 40,260 40,276 18,774 18,774 3 Junior subordinated deferrable interest debentures 12,832 10,213 12,806 9,295 3 $ 690,766 $ 687,182 $ 556,260 $ 551,881 The above summary does not include accrued interest receivable or cash surrender value of life insurance , which are also considered financial instruments. The estimated fair value of such items is considered to be their carrying a mounts and would be considered L evel 1 input s . There are also unrecognized financial instruments at September 30, 2017 and December 31, 201 6 which relate to commitments to extend credit and letters of credit. The contract amount of such financial instruments amounted to $127,752,000 at September 30, 2017 and $91,023,000 at December 31, 201 6 . Such amounts are also considered to be the estimated fair values. The following methods and assumptions were used to estimate the fair value of each class of financial instruments shown above: Cash and cash equivalents: Fair value is determined to be the carrying amount for these items (which include cash on hand, due from banks, and federal funds sold) because they represent cash or mature in 90 days or less, and do not represent unanticipated credit concerns. Securities: The fair value of securities is determined based on quoted market prices of the individual securities; if not available, estimated fair value is obtained by comparison to other known securities with similar risk and maturity characteristics. Such value does not consider possible tax ramifications or estimated transaction costs. Loans held for sale: The fair value of loans held for sale is determined to be the book value as they are typically held for 60 days or less. Loans and leases: Fair value for loans and leases was estimated for portfolios of loans and leases with similar financial characteristics. For adjustable rate loans, which re-price at least annually and generally possess low risk characteristics, the carrying amount is believed to be a reasonable estimate of fair value. For fixed rate loans, the fair value is estimated based on a discounted cash flow analysis, considering weighted average rates and terms of the portfolio, adjusted for credit and interest rate risk inherent in the loans. Fair value for nonperforming loans is based on recent appraisals or estimated discounted cash flows. Mortgage servicing rights: The fair value for mortgage servicing rights is determined based on an analysis of the portfolio by an independent third party. Deposit liabilities: The fair value of core deposits, including demand deposits, savings accounts, and certain money market deposits, is the amount payable on demand. The fair value of fixed-maturity certificates of deposit is estimated using the rates offered at quarter end for deposits of similar remaining maturities. The estimated fair value does not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the marketplace. Other borrowings and junior subordinated deferrable interest debentures: The fair value of Federal Home Loan Bank (FHLB) borrowings and junior subordinated deferrable interest debentures are determined using the net present value of discounted cash flows based on current borrowing rates for similar types of borrowing arrangements, and are obtained from an independent third party. The fair value of the note payable to United Bankers Bank obtained in September, 2017 to partially finance the acquisition described in Note 3 is considered to be book value. Other financial instruments: The fair value of commitments to extend credit and letters of credit is determined to be the contract amount, since these financial instruments generally represent commitments at existing rates. The fair value of other borrowings is determined based on a discounted cash flow analysis using current interest rates. The fair value of other liabilities is generally considered to be carrying value except for the deferred compensation agreement. The fair value of the contract is determined based on a discounted cash flow analysis using a current interest rate for a similar instrument. The fair value estimates of financial instruments are made at a specific point in time based on relevant market information. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire holdings of a particular financial instrument over the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Since no ready market exists for a significant portion of the financial instruments, fair value estimates are largely based on judgments after considering such factors as future expected credit losses, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates. |
Stock Options
Stock Options | 9 Months Ended |
Sep. 30, 2017 | |
Stock Options [Abstract] | |
Stock Options | NOTE 10 – STOCK OPTIONS The United Bancshares, Inc. 2016 Stock Option Plan (the “Plan”) permits the Corporation to award non-qualified stock options to eligible participants. A total of 250,000 shares are available for issuance pursuant to the Plan. The Corporation issued 33,352 options during the fourth quarter of 2016 at an exercise price of $19.32 and 30,151 options during the third quarter of 2017 at an exercise price of $21.70 under the Plan. Following is a summary of activity for stock options for the quarter ended September 30, 2017. Number of Shares Outstanding, beginning of period 33,352 Granted 30,151 Exercised - Outstanding, end of period 63,503 The options vest over a three -year period on the anniversary of the date of grant. At September 30, 2017, no options were exercisable and outstanding options had a weighted average remaining contractual term of 6.625 years . The fair value of options granted is estimated at the date of grant using the Black Scholes option pricing model. Following are assumptions used in calculating the fair value of the options granted: 2017 2016 Weighted-average fair value of options granted $ 7.35 $ 6.27 Average dividend yield 2.23 % 2.31 % Expected volatility 40.00 % 40.00 % Rick-free interest rate 2.06 % 1.58 % Expected term (years) 7 7 Total compensation expense related to the stock options granted in 2016 is expected to be $209,000 and is being recognized ratably over the 36 month period beginning January 1, 2017. Total compensation expense related to the stock options granted in 2017 is expected to be $222,000 and is being recognized ratably over the 36 month period beginning August 1, 2017. Stock option expense for outstanding awards amounted to $30,000 and $65,000 , respectfully, for the quarter and nine months ended September 30, 2017. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 11 – SUBSEQUENT EVENTS Management evaluated subsequent events through the date the consolidated financial statements were issued. Events or transactions occurring after September 30, 2017 but prior to when the consolidated financial statements were issued, that provided additional evidence about conditions that existed at September 30, 2017 have been recognized in the consolidated financial statements for the period ended September 30, 2017. Events or transactions that provided evidence about conditions that did not exist at September 30, 2017 but arose before the financial statements were issued have not been recognized in the consolidated financial statements for the period ended September 30, 2017. On October 17, 2017 , the Corporation's Board of Directors approved a cash dividend of $0.12 per common share payable December 15, 2017 to shareholders of record at the close of business on November 30, 2017 . |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Acquisition [Abstract] | |
Schedule of Assets and Deposits Assumed in Acquisition | Consideration paid and the estimated fair value of the assets acquired and the liabilities assumed at the acquisition date are as follows (dollars in thousands): Cash and cash equivalents $ 6,092 Restricted stock 472 Loans, including loans held for sale 98,804 Premises and equipment 2,483 Core deposit intangible asset 146 Other real estate owned 141 Other assets, including accrued interest receivable 5,460 Total assets acquired 113,598 Deposits 95,545 Other liabilities 2,661 Total liabilities assumed 98,206 Net identifiable assets 15,392 Goodwill 15,360 Total cash paid $ 30,752 |
Business Acquisition, Pro Forma Information | (in thousands except per share data) June 30, 2017 Historical United Historical Benchmark Pro Forma Adjustments Debit/(Credit) Footnote Reference Pro Forma Combined (Unaudited) ASSETS: Cash and due from banks $ 14,155 $ 9,982 $ (5,897) (1) $ 18,240 Fed Funds sold - 775 - 775 Securities, available-for-sale 183,975 1,621 - 185,596 Loans, gross 385,777 105,798 (3,046) (2) 488,529 Allowance for loan losses (2,829) (1,088) 1,088 (3) (2,829) Premises and equipment 17,008 2,409 142 (4) 19,559 Other real estate owned 344 351 (211) (5) 484 Federal Home Loan Bank stock 4,829 473 - 5,302 Bank owned life insurance 17,548 - - 17,548 Other intangible assets 707 - 146 (6) 853 Goodwill 10,072 - 14,586 (7) 24,658 Accrued interest and other assets 5,092 4,029 618 (8) 9,739 Total Assets $ 636,678 $ 124,350 $ 7,426 $ 768,454 LIABILITIES: Deposits $ 537,303 $ 97,862 $ 418 (9) $ 635,583 Other borrowings 7,571 8,000 25,000 (1) 40,571 Trust preferred 12,823 - - 12,823 Accrued expenses and other liabilities 3,425 641 - 4,066 Total Liabilities $ 561,122 $ 106,503 $ 25,418 $ 693,043 EQUITY: Common stock $ 3,761 $ 3,115 $ (3,115) (10) $ 3,761 Preferred stock - 2 (2) (10) - Warrants - 38 (38) (10) - Additional paid-in capital - Common - 20,923 (20,923) (10) - Additional paid-in capital - Preferred - 1,605 (1,605) (10) - Surplus 14,712 - - 14,712 Retained earnings (accumulated deficit) 64,511 (7,814) 7,669 (11) 64,366 Treasury stock (7,719) - - (7,719) Accumulated other comprehensive income (loss) 291 (22) 22 (12) 291 Total Stockholders' Equity 75,556 17,847 (17,992) 75,411 Total Liabilities & Stockholders' Equity $ 636,678 $ 124,350 $ 7,426 $ 768,454 (in thousands except per share data) For the Six months Ended June 30, 2017 Historical United Historical Benchmark Pro Forma Adjustments Debit/(Credit) Footnote Reference Pro Forma Combined (Unaudited) Interest Income $ 11,389 $ 3,128 $ 187 (13) $ 14,704 Interest Expense 1,260 434 158 (14) 1,852 Net interest income 10,129 2,694 29 12,852 Credit for loan losses (350) (96) - (446) Net interest income after provision for loan losses 10,479 2,790 29 13,298 Non-interest income 2,385 2,651 - 5,036 Non-interest expense 9,522 5,028 15 (15)(16) 14,565 Income before income taxes 3,342 413 14 3,769 Income tax provision 763 207 5 (17) 975 Net Income $ 2,579 $ 206 $ 9 $ 2,794 Earnings per share Basic $ 0.79 $ 0.07 Diluted $ 0.79 $ 0.07 Pro Forma earnings per share Basic (18) $ 0.86 Diluted (18) $ 0.86 (in thousands except per share data) For the Year Ended December 31, 2016 Historical United Historical Benchmark Pro Forma Adjustments Debit/(Credit) Footnote Reference Pro Forma Combined (Unaudited) Interest Income $ 21,627 $ 6,082 $ 334 (13) $ 28,043 Interest Expense 2,231 700 318 (14) 3,249 Net interest income 19,396 5,382 16 24,794 Credit for loan losses (750) (256) - (1,006) Net interest income after provision for loan losses 20,146 5,638 16 25,800 Non-interest income 4,903 6,473 - 11,376 Non-interest expense 17,784 10,636 29 (15)(16) 28,449 Income before income taxes 7,265 1,475 (13) 8,727 Income tax provision 1,744 (3,652) (5) (17) (1,913) Net Income $ 5,521 $ 5,127 $ (8) $ 10,640 Earnings per share Basic $ 1.68 $ 1.65 Diluted $ 1.68 $ 1.65 Pro Forma earnings per share Basic (18) $ 3.43 Diluted (18) $ 3.43 PRELIMINARY PURCHASE ACCOUNTING ALLOCATIONS The unaudited pro forma condensed combined consolidated financial information for the merger includes an unaudited pro forma condensed combined balance sheet as of June 30, 2017 assuming the merger was completed on June 30, 2017. The unaudited pro forma condensed combined consolidated statements of income is for the six months ended June 30, 2017. (in thousands) June 30, 2017 Footnote Reference Benchmark Bancorp shareholders' equity - June 30, 2017 plus/(minus) estimated fair value adjustments: $ 17,847 Loan fair value $ (3,046) (2) Allowance for loan losses 1,088 (3) Loans, net (1,958) Building 142 (4) OREO (211) (5) Core deposit intangible asset 146 Deferred tax asset, net 618 (8) Deposits - fixed maturity (418) (9) Total fair value adjustments $ (1,681) Estimated fair value of Benchmark Bancorp net assets at June 30, 2017 16,166 Total consideration paid to Benchmark Bancorp shareholders (**) 30,752 Goodwill $ 14,586 ** The purchase price is based on estimated total cash consideration of $30,752. A. Notes: (1) Cash consideration of $30,752,000 paid to Benchmark Bancorp’s shareholders plus estimated transaction costs of $145,000 net of tax, less additional borrowings of $25,000,000 . (2) The fair value of Benchmark’s loan portfolio acquired in the transaction is estimated by United to be less than book value. Based on management’s judgment, United applied a discount to the loan portfolio to estimate the fair value adjustment as of June 30, 2017. The adjustment reflects United’s estimates of both market interest rate differential and credit considerations on pools of loans and the potential adjustments required by ASC 310-30, “Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality” for applicable individual loans. The portion of the fair market value adjustment that is accretable is assumed to amortize into interest income on a level yield basis over the estimated remaining life of the loans. (3) Elimination of Benchmark’s allowance for loan losses. (4) Adjusts bank premises to appraised value at June 30, 2017. (5) Adjusts the value of OREO at June 30, 2017 to estimated fair value. (6) Represents the establishment of the estimated core deposit intangible. The core deposit intangible is assumed to amortize into non-interest expense over 10 years, using accelerated methods. (7) Goodwill estimate based on the excess of the purchase price over the estimated fair value of the net assets acquired. (8) Tax effect of estimated fair market value adjustments. (9) Estimated fair market value adjustment related to deposits and is assumed to amortize into interest expense on a level yield basis over the estimated remaining maturity of the deposits. (10) Reflects the elimination of Benchmark’s common and preferred stock, including related additional paid-in capital, as well as warrants. (11) Reflects the elimination of Benchmark’s accumulated deficit of $7,814,000 , net of after-tax transaction costs of $145,000 . (12) Reflects the elimination of Benchmark’s accumulated other comprehensive loss of $22,000 . (13) Interest income impact of loan discount accretion on purchase accounting adjustment, net of lost earnings on cash consideration paid and net merger costs, after tax. (14) Interest expense on other borrowings incurred to facilitate the transaction, net of estimated fair value adjustment related to deposits assumed to amortize into interest expense on an accelerated basis over 5 years. (15) Reflects additional depreciation on fair value adjustment of bank premises. (16) Reflects core deposit intangible amortization over 10 years, using accelerated methods. (17) Represents the income tax effect ( 34% ) of the impact of pro forma adjustments on income before tax. Basic and diluted pro forma earnings per share for the six months ended June 30, 2017 have been computed based on 3,267,020 basic and 3,271,477 diluted shares, respectively. Basic and diluted pro forma earnings per share for the year ended December 31, 2016 have been computed based upon 3,289,497 basic and diluted shares |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Securities [Abstract] | |
Amortized Cost and Fair Value of Securities | The amortized cost and fair value of available-for-sale securities as of September 30, 2017 and December 31, 2016 are as follows: (in thousands) September 30, 2017 December 31, 2016 Amortized cost Fair value Amortized cost Fair value Available-for-sale: Obligations of states and political subdivisions $ 69,796 $ 70,800 $ 70,757 $ 70,624 Mortgage-backed 107,342 106,948 119,758 118,595 Other 1,002 992 1,002 986 Total $ 178,140 $ 178,740 $ 191,517 $ 190,205 |
Unrealized Gain (Loss) on Securities | A summary of gross unrealized gains and losses on available-for-sale securities as of September 30, 2017 and December 31, 2016 follows: September 30, 2017 December 31, 2016 Gross unrealized gains Gross unrealized losses Gross unrealized gains Gross unrealized losses Available-for-sale: Obligations of states and political subdivisions $ 1,210 $ 206 $ 644 $ 777 Mortgage-backed 603 997 769 1,932 Other - 10 - 16 Total $ 1,813 $ 1,213 $ 1,413 $ 2,725 |
Loans and Leases (Tables)
Loans and Leases (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Leases [Abstract] | |
Activity in the Allowance for Credit Losses on Financing Receivables | The following tables present the activity in the allowance for loan and lease losses by portfolio segment for the periods ending September 30, 2017 and 2016: (in thousands) Commercial Commercial and multi-family real estate Residential 1 – 4 family real estate Consumer Total Balance at December 31, 2016 $ 896 $ 1,876 $ 542 $ 31 $ 3,345 Provision (credit) charged to expenses (374) (65) 65 24 (350) Losses charged off (36) (553) (45) (23) (657) Recoveries 78 381 12 8 479 Balance at September 30, 2017 $ 564 $ 1,639 $ 574 $ 40 $ 2,817 Commercial Commercial and multi-family real estate Residential 1 – 4 family real estate Consumer Total Balance at December 31, 2015 $ 893 $ 2,540 $ 373 $ 28 $ 3,834 Provision (credit) charged to expenses 163 (904) 42 (1) (700) Losses charged off (86) (11) (24) (8) (129) Recoveries 28 285 62 8 383 Balance at September 30, 2016 $ 998 $ 1,910 $ 453 $ 27 $ 3,388 |
Allowance for Loan and Lease Losses, Current | The following tables present the balance in the allowance for loan and lease losses and the recorded investment in loans and leases by portfolio segment and based on impairment method for the periods ending September 30, 2017 and December 31, 2016: (in thousands) September 30, 2017 Commercial Commercial and multi-family real estate Residential 1 – 4 family real estate Consumer Total Allowance for loan and lease losses: Attributable to loans and leases individually evaluated for impairment $ 98 $ - $ - $ - $ 98 Collectively evaluated for impairment 466 1,639 574 40 2,719 Total allowance for loan and lease losses $ 564 $ 1,639 $ 574 $ 40 $ 2,817 Loans and leases: Individually evaluated for impairment $ 490 $ 396 $ - $ - $ 886 Acquired with deteriorated credit quality - 915 227 - 1,142 Collectively evaluated for impairment 64,284 301,085 121,180 4,512 491,061 Total ending loans and leases balance $ 64,774 $ 302,396 $ 121,407 $ 4,512 $ 493,089 December 31, 2016 Commercial Commercial and multi-family real estate Residential 1 – 4 family real estate Consumer Total Allowance for loan and lease losses: Attributable to loans and leases individually evaluated for impairment $ 399 $ 619 $ - $ - $ 1,018 Collectively evaluated for impairment 497 1,257 542 31 2,327 Total allowance for loan and lease losses $ 896 $ 1,876 $ 542 $ 31 $ 3,345 Loans and leases: Individually evaluated for impairment $ 937 $ 1,980 $ - $ - $ 2,917 Acquired with deteriorated credit quality - 573 51 - 624 Collectively evaluated for impairment 62,782 216,933 88,818 4,012 372,545 Total ending loans and leases balance $ 63,719 $ 219,486 $ 88,869 $ 4,012 $ 376,086 |
Schedule of Impaired Loans and Leases | Impaired loans and leases were as follows as of September 30, 2017 and December 31, 2016: (in thousands) September 30, 2017 December 31, 2016 Loans and leases with no allowance for loan and lease losses allocated $ 396 $ - Loans and leases with allowance for loan and lease losses allocated 490 2,917 Total impaired loans and leases 886 2,917 Amount of the allowance allocated to impaired loans and leases $ 98 $ 1,018 |
Schedule of Activity in Allowance of Impaired Loans and Leases | The following table presents loans and leases individually evaluated for impairment by class of loans as of September 30, 2017 and December 31, 2016: (in thousands) September 30, 2017 December 31, 2016 Recorded investment Allowance for loan and lease losses allocated Recorded investment Allowance for loan and lease losses allocated With no related allowance recorded: Commercial $ - $ - $ - $ - Commercial and multi-family real estate 396 - - - Agriculture - - - - Agricultural real estate - - - - Consumer - - - - Residential 1-4 family real estate - - - - With an allowance recorded: Commercial 490 98 937 399 Commercial and multi-family real estate - - 1,980 619 Agriculture - - - - Agricultural real estate - - - - Consumer - - - - Residential 1-4 family real estate - - - - Total $ 886 $ 98 $ 2,917 $ 1,018 |
Schedule of Financing Receivables, Non-Accrual Status | The following tables present the recorded investment in nonaccrual loans and leases, loans and leases past due over 90 days still on accrual and troubled debt restructurings by class of loans as of September 30, 2017 and December 31, 2016: (in thousands) September 30, 2017 Nonaccrual Loans and leases past due over 90 days still accruing Troubled Debt Restructurings Commercial $ 618 $ - $ 27 Commercial real estate 1,573 - 604 Agricultural real estate 233 - - Agriculture - - - Consumer - - - Residential: 1 – 4 family 726 199 436 Home equity - - - Total $ 3,150 $ 199 $ 1,067 (in thousands) December 31, 2016 Nonaccrual Loans and leases past due over 90 days still accruing Troubled Debt Restructurings Commercial $ 1,295 $ - $ 29 Commercial real estate 3,462 - 722 Agricultural real estate 277 - - Agriculture - 73 - Consumer 3 - - Residential: 1 – 4 family 966 81 457 Home equity - - - Total $ 6,003 $ 154 $ 1,208 |
Past Due Financing Receivables | The following table presents the aging of the recorded investment in past due loans and leases as of September 30, 2017 by class of loans and leases: (in thousands) 30 – 59 days past due 60 – 89 days past due Greater than 90 days past due Total past due Loans and leases not past due Total Commercial $ 113 $ - $ 74 $ 187 $ 51,550 $ 51,737 Commercial real estate 125 23 516 664 271,771 272,435 Agriculture 60 - - 60 12,977 13,037 Agricultural real estate 10 - - 10 29,951 29,961 Consumer - 3 - 3 4,509 4,512 Residential real estate 2,970 29 297 3,296 118,111 121,407 Total $ 3,278 $ 55 $ 887 $ 4,220 $ 488,869 $ 493,089 The following table presents the aging of the recorded investment in past due loans and leases as of December 31, 2016 by class of loans and leases: (in thousands) 30 – 59 days past due 60 – 89 days past due Greater than 90 days past due Total past due Loans and leases not past due Total Commercial $ 326 $ 71 $ 79 $ 476 $ 49,988 $ 50,464 Commercial real estate 103 147 553 803 192,830 193,633 Agriculture 227 - - 227 13,026 13,253 Agricultural real estate - - 5 5 25,850 25,855 Consumer 10 2 - 12 4,000 4,012 Residential real estate 1,770 484 462 2,716 86,153 88,869 Total $ 2,436 $ 704 $ 1,099 $ 4,239 $ 371,847 $ 376,086 |
Risk Category of Loans, Credit Quality Indicators | As of September 30, 2017 and December 31, 2016, and based on the most recent analysis performed, the risk category of loans by class of loans and leases is as follows: (in thousands) September 30, 2017 Pass Special Mention Substandard Doubtful Not rated Commercial $ 43,832 $ - $ 1,998 $ - $ 18,944 Commercial and multi- family real estate 224,970 2,390 2,449 - 72,587 Residential 1 - 4 family 11,056 - 124 - 110,227 Consumer - - - - 4,512 Total $ 279,858 $ 2,390 $ 4,571 $ - $ 206,270 December 31, 2016 Pass Special Mention Substandard Doubtful Not rated Commercial $ 41,233 $ - $ 3,666 $ - $ 18,819 Commercial and multi- family real estate 162,399 4,239 3,850 - 48,999 Residential 1 - 4 family 210 - - - 88,659 Consumer - - - - 4,012 Total $ 203,842 $ 4,239 $ 7,516 $ - $ 160,489 |
Performance of Residential, Commercial, and Consumer Loan Portfolio | The following table presents the recorded investment in all loans and leases that are not risk rated, based on payment activity as of September 30, 2017 and December 31, 2016: : (in thousands) September 30, 2017 Commercial Commercial and multi-family real estate Residential 1-4 family Consumer Performing $ 18,870 $ 72,127 $ 109,930 $ 4,512 Nonperforming 74 460 297 - Total $ 18,944 $ 72,587 $ 110,227 $ 4,512 December 31, 2016 Commercial Commercial and multi-family real estate Residential 1-4 family Consumer Performing $ 18,740 $ 48,441 $ 88,197 $ 4,012 Nonperforming 79 558 462 - Total $ 18,819 $ 48,999 $ 88,659 $ 4,012 |
Schedule of Loans Acquired in Acquisition | The following is information related to loans and leases acquired in these transactions, including purchased impaired loans: The Ohio State Bank (in thousands) Contractual Principal Accretable Carrying Receivable Difference Amount Purchased Performing Loans and Leases Balance at December 31, 2016 $ 34,416 $ (1,476) $ 32,940 Change due to payments received (6,285) 494 (5,791) Transfer to foreclosed real estate - - - Change due to loan charge-off - - - Balance at September 30, 2017 $ 28,131 $ (982) $ 27,149 Contractual Non Principal Accretable Carrying Receivable Difference Amount Purchased Impaired Loans and Leases Balance at December 31, 2016 $ 1,520 $ (896) $ 624 Change due to payments received (288) 176 (112) Transfer to foreclosed real estate (433) 297 (136) Change due to loan charge-off (208) 107 (101) Balance at September 30, 2017 $ 591 $ (316) $ 275 Benchmark Bank (in thousands) Contractual Principal Accretable Carrying Receivable Difference Amount Purchased Performing Loans and Leases Balance at September 8, 2017 $ 96,914 $ (2,273) $ 94,641 Change due to payments received (34) 1 (33) Transfer to foreclosed real estate - - - Change due to loan charge-off - - - Balance at September 30, 2017 $ 96,880 $ (2,272) $ 94,608 Contractual Non Principal Accretable Carrying Receivable Difference Amount Purchased Impaired Loans and Leases Balance at September 8, 2017 $ 1,641 $ (771) $ 870 Change due to payments received - - - Transfer to foreclosed real estate - - - Change due to loan charge-off - - - Balance at September 30, 2017 $ 1,641 $ (771) $ 870 |
Other Borrowings (Tables)
Other Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Other Borrowings [Abstract] | |
Composition of Other Borrowings | Other borrowings consists of the following at September 30, 2017 and December 31, 2016: (in thousands) September 30, December 31, 2017 2016 Federal Home Loan Bank borrowings: Secured notes, with interest at .74% , due March, 2017 $ - $ 18,774 Secured note, with interest at 1.27% , due December, 2017 5,160 - Secured note, with interest at 0.0% , due October, 2018 100 - Secured note, with interest at 1.56% , due September, 2021 7,000 - Secured note, with interest at 1.72% , due September, 2020 6,000 - Secured note, with interest at 1.86% , due September, 2021 6,000 - Secured note, with interest at 1.97% , due September, 2022 6,000 - United Bankers Bank Note payable, with interest at 4.875% , due September, 2022 10,000 - Total other borrowings $ 40,260 $ 18,774 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value [Abstract] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The tables below present a reconciliation and income statement classification of gains and losses for mortgage servicing rights, which are measured at fair value on a recurring basis using significant unobservable inputs (Level 3), and certain securities which are valued using Level 3 inputs, for the nine month period ended September 30, 2017 and year ended December 31, 2016: (in thousands) September 30, December 31, 2017 2016 Mortgage Servicing Rights Balance at beginning of period $ 1,247 $ 1,181 Gains or losses, including realized and unrealized: Purchases, issuances, and settlements 138 273 Disposals - amortization based on loan payments and payoffs (97) (195) Changes in fair value (57) (12) Balance at end of period $ 1,231 $ 1,247 Securities valued using Level 3 inputs Balance at beginning of period $ 2,238 $ 2,389 Principal payments received (2,238) (151) Changes in fair value - - Balance at end of period $ - $ 2,238 |
Fair Value of Financial Instr25
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value [Abstract] | |
Carrying Amounts and Fair Values of Recognized Financial Instruments | The carrying amounts and estimated fair values of recognized financial instruments at September 30, 2017 and December 31, 2016 were as follows: (in thousands) September 30, 2017 December 31, 2016 Carrying amount Estimated value Carrying amount Estimated value Input Level FINANCIAL ASSETS Cash and cash equivalents $ 13,849 $ 13,849 $ 14,186 $ 14,186 1 Securities, including FHLB stock 184,042 184,042 195,035 195,035 2,3 Certificates of deposit 1,245 1,245 1,494 1,494 2 Loans held for sale 6,993 6,993 1,510 1,510 3 Net loans and leases 490,272 489,027 372,741 371,493 3 Mortgage servicing rights 1,231 1,231 1,247 1,247 3 $ 697,632 $ 696,387 $ 586,213 $ 584,965 FINANCIAL LIABILITIES Deposits Maturity $ 176,599 175,618 $ 129,460 $ 128,592 3 Non-maturity 461,075 461,075 395,220 395,220 1 Other borrowings 40,260 40,276 18,774 18,774 3 Junior subordinated deferrable interest debentures 12,832 10,213 12,806 9,295 3 $ 690,766 $ 687,182 $ 556,260 $ 551,881 |
Stock Options (Tables)
Stock Options (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stock Options [Abstract] | |
Summary of Activity for Stock Options | Following is a summary of activity for stock options for the quarter ended September 30, 2017. Number of Shares Outstanding, beginning of period 33,352 Granted 30,151 Exercised - Outstanding, end of period 63,503 |
Schedule of Assumptions Used in Calculating the Fair Value of Options Granted | Following are assumptions used in calculating the fair value of the options granted: 2017 2016 Weighted-average fair value of options granted $ 7.35 $ 6.27 Average dividend yield 2.23 % 2.31 % Expected volatility 40.00 % 40.00 % Rick-free interest rate 2.06 % 1.58 % Expected term (years) 7 7 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 08, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 25,432 | $ 25,432 | $ 10,072 | |
Benchmark [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Acquisition Related Costs | $ 1,115 | $ 1,271 | ||
Share price in business merger | $ 8.59 | |||
Goodwill | $ 15,360 |
Acquisition (Schedule of Assets
Acquisition (Schedule of Assets and Deposits Assumed in Acquisition) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 08, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 25,432 | $ 10,072 | ||
Benchmark Bancorp, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 6,092 | |||
Restricted stock | 472 | |||
Loans, including loans held for sale | 98,804 | |||
Premises and equipment | 2,483 | |||
Core deposit intangible asset | 146 | |||
Other real estate owned | 141 | |||
Other assets, including accrued interest receivable | 5,460 | |||
Total assets acquired | 113,598 | |||
Deposits | 95,545 | |||
Other liabilities | 2,661 | |||
Total liabilities assumed | 98,206 | |||
Net identifiable assets | 15,392 | $ 16,166 | ||
Goodwill | 15,360 | $ 14,586 | ||
Total cash paid | $ 30,752 |
Acquisition (Unaudited Pro Form
Acquisition (Unaudited Pro Forma Condensed Combined Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 08, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||||||
Cash and due from banks | $ 9,401 | $ 9,926 | ||||
SECURITIES, available-for-sale | 178,740 | 190,205 | ||||
Loans, gross | 493,089 | 376,086 | ||||
Allowance for loan losses | (2,817) | (3,345) | $ (3,388) | $ (3,834) | ||
Premises and equipment, net of accumulated depreciation | 19,312 | 13,395 | ||||
Other real estate owned | 451 | 578 | ||||
Federal Home Loan Bank stock | 5,302 | 4,830 | ||||
Bank owned life insurance | 17,726 | 17,351 | ||||
Other intangible assets | 829 | 766 | ||||
Goodwill | 25,432 | 10,072 | ||||
OTHER ASSETS, including accrued interest receivable | 10,562 | 5,991 | ||||
Total Assets | 770,713 | 633,119 | ||||
LIABILITIES | ||||||
Deposits | 637,674 | 524,680 | ||||
Other borrowings | 40,260 | 18,774 | ||||
Trust preferred | 12,832 | 12,806 | ||||
Accrued expenses and other liabilities | 4,233 | 4,301 | ||||
Total liabilities | 694,999 | 560,561 | ||||
SHAREHOLDERS' EQUITY | ||||||
Common stock | 3,761 | 3,761 | ||||
Surplus | 14,746 | 14,674 | ||||
Retained earnings (accumulated deficit) | 64,521 | 62,717 | ||||
Treasury stock, at cost | (7,710) | (7,728) | ||||
Accumulated other comprehensive income (loss) | 396 | (866) | ||||
Total shareholders' equity | 75,714 | 72,558 | $ 75,344 | $ 71,561 | ||
Total Liabilities & Stockholders' Equity | $ 770,713 | $ 633,119 | ||||
Adjustments [Member] | ||||||
ASSETS | ||||||
Cash and due from banks | $ (5,897) | |||||
Loans, gross | (3,046) | |||||
Allowance for loan losses | 1,088 | |||||
Premises and equipment, net of accumulated depreciation | 142 | |||||
Other real estate owned | (211) | |||||
Other intangible assets | 146 | |||||
Goodwill | 14,586 | |||||
OTHER ASSETS, including accrued interest receivable | 618 | |||||
Total Assets | 7,426 | |||||
LIABILITIES | ||||||
Deposits | 418 | |||||
Other borrowings | 25,000 | |||||
Total liabilities | 25,418 | |||||
SHAREHOLDERS' EQUITY | ||||||
Common stock | (3,115) | |||||
Preferred stock | (2) | |||||
Warrants | (38) | |||||
Additional paid-in-capital - Common | (20,923) | |||||
Additional paid-in-capital - Preferred | (1,605) | |||||
Retained earnings (accumulated deficit) | 7,669 | |||||
Accumulated other comprehensive income (loss) | 22 | |||||
Total shareholders' equity | (17,992) | |||||
Total Liabilities & Stockholders' Equity | 7,426 | |||||
Pro Forma [Member] | ||||||
ASSETS | ||||||
Cash and due from banks | 18,240 | |||||
Federal Funds sold | 775 | |||||
SECURITIES, available-for-sale | 185,596 | |||||
Loans, gross | 488,529 | |||||
Allowance for loan losses | (2,829) | |||||
Premises and equipment, net of accumulated depreciation | 19,559 | |||||
Other real estate owned | 484 | |||||
Federal Home Loan Bank stock | 5,302 | |||||
Bank owned life insurance | 17,548 | |||||
Other intangible assets | 853 | |||||
Goodwill | 24,658 | |||||
OTHER ASSETS, including accrued interest receivable | 9,739 | |||||
Total Assets | 768,454 | |||||
LIABILITIES | ||||||
Deposits | 635,583 | |||||
Other borrowings | 40,571 | |||||
Trust preferred | 12,823 | |||||
Accrued expenses and other liabilities | 4,066 | |||||
Total liabilities | 693,043 | |||||
SHAREHOLDERS' EQUITY | ||||||
Common stock | 3,761 | |||||
Surplus | 14,712 | |||||
Retained earnings (accumulated deficit) | 64,366 | |||||
Treasury stock, at cost | (7,719) | |||||
Accumulated other comprehensive income (loss) | 291 | |||||
Total shareholders' equity | 75,411 | |||||
Total Liabilities & Stockholders' Equity | 768,454 | |||||
Benchmark Bancorp, Inc. [Member] | ||||||
ASSETS | ||||||
Goodwill | $ 15,360 | 14,586 | ||||
United Bancshares Inc OH [Member] | Historical [Member] | ||||||
ASSETS | ||||||
Cash and due from banks | 14,155 | |||||
SECURITIES, available-for-sale | 183,975 | |||||
Loans, gross | 385,777 | |||||
Allowance for loan losses | (2,829) | |||||
Premises and equipment, net of accumulated depreciation | 17,008 | |||||
Other real estate owned | 344 | |||||
Federal Home Loan Bank stock | 4,829 | |||||
Bank owned life insurance | 17,548 | |||||
Other intangible assets | 707 | |||||
Goodwill | 10,072 | |||||
OTHER ASSETS, including accrued interest receivable | 5,092 | |||||
Total Assets | 636,678 | |||||
LIABILITIES | ||||||
Deposits | 537,303 | |||||
Other borrowings | 7,571 | |||||
Trust preferred | 12,823 | |||||
Accrued expenses and other liabilities | 3,425 | |||||
Total liabilities | 561,122 | |||||
SHAREHOLDERS' EQUITY | ||||||
Common stock | 3,761 | |||||
Surplus | 14,712 | |||||
Retained earnings (accumulated deficit) | 64,511 | |||||
Treasury stock, at cost | (7,719) | |||||
Accumulated other comprehensive income (loss) | 291 | |||||
Total shareholders' equity | 75,556 | |||||
Total Liabilities & Stockholders' Equity | 636,678 | |||||
Benchmark Bancorp, Inc. [Member] | Historical [Member] | ||||||
ASSETS | ||||||
Cash and due from banks | 9,982 | |||||
Federal Funds sold | 775 | |||||
SECURITIES, available-for-sale | 1,621 | |||||
Loans, gross | 105,798 | |||||
Allowance for loan losses | (1,088) | |||||
Premises and equipment, net of accumulated depreciation | 2,409 | |||||
Other real estate owned | 351 | |||||
Federal Home Loan Bank stock | 473 | |||||
OTHER ASSETS, including accrued interest receivable | 4,029 | |||||
Total Assets | 124,350 | |||||
LIABILITIES | ||||||
Deposits | 97,862 | |||||
Other borrowings | 8,000 | |||||
Accrued expenses and other liabilities | 641 | |||||
Total liabilities | 106,503 | |||||
SHAREHOLDERS' EQUITY | ||||||
Common stock | 3,115 | |||||
Preferred stock | 2 | |||||
Warrants | 38 | |||||
Additional paid-in-capital - Common | 20,923 | |||||
Additional paid-in-capital - Preferred | 1,605 | |||||
Retained earnings (accumulated deficit) | (7,814) | |||||
Accumulated other comprehensive income (loss) | (22) | |||||
Total shareholders' equity | 17,847 | |||||
Total Liabilities & Stockholders' Equity | $ 124,350 |
Acquisition (Unaudited pro fo30
Acquisition (Unaudited pro forma combined statement of income) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Interest Income | $ 6,484 | $ 5,541 | $ 17,872 | $ 16,089 | ||
Interest Expense | 776 | 580 | 2,035 | 1,652 | ||
Net interest income | 5,708 | 4,961 | 15,837 | 14,437 | ||
Credit for loan losses | (350) | (700) | ||||
Net interest income after provision for loan losses | 5,708 | 4,961 | 16,187 | 15,137 | ||
Non-interest income | 1,360 | 1,289 | 3,745 | 3,471 | ||
Non-interest expense | 6,427 | 4,454 | 15,949 | 13,371 | ||
Income before income taxes | 641 | 1,796 | 3,983 | 5,237 | ||
Income tax expense (benefit) | 239 | 418 | 1,002 | 1,216 | ||
Net income | $ 402 | $ 1,378 | $ 2,981 | $ 4,021 | ||
Historical [Member] | United Bancshares Inc OH [Member] | ||||||
Interest Income | $ 11,389 | $ 21,627 | ||||
Interest Expense | 1,260 | 2,231 | ||||
Net interest income | 10,129 | 19,396 | ||||
Credit for loan losses | (350) | (750) | ||||
Net interest income after provision for loan losses | 10,479 | 20,146 | ||||
Non-interest income | 2,385 | 4,903 | ||||
Non-interest expense | 9,522 | 17,784 | ||||
Income before income taxes | 3,342 | 7,265 | ||||
Income tax expense (benefit) | 763 | 1,744 | ||||
Net income | $ 2,579 | $ 5,521 | ||||
Basic | $ 0.79 | $ 1.68 | ||||
Diluted | $ 0.79 | $ 1.68 | ||||
Historical [Member] | Benchmark Bancorp, Inc. [Member] | ||||||
Interest Income | $ 3,128 | $ 6,082 | ||||
Interest Expense | 434 | 700 | ||||
Net interest income | 2,694 | 5,382 | ||||
Credit for loan losses | (96) | (256) | ||||
Net interest income after provision for loan losses | 2,790 | 5,638 | ||||
Non-interest income | 2,651 | 6,473 | ||||
Non-interest expense | 5,028 | 10,636 | ||||
Income before income taxes | 413 | 1,475 | ||||
Income tax expense (benefit) | 207 | (3,652) | ||||
Net income | $ 206 | $ 5,127 | ||||
Basic | $ 0.07 | $ 1.65 | ||||
Diluted | $ 0.07 | $ 1.65 | ||||
Adjustments [Member] | ||||||
Interest Income | $ 187 | $ 334 | ||||
Interest Expense | 158 | 318 | ||||
Net interest income | 29 | 16 | ||||
Net interest income after provision for loan losses | 29 | 16 | ||||
Non-interest expense | 15 | 29 | ||||
Income before income taxes | 14 | (13) | ||||
Income tax expense (benefit) | 5 | (5) | ||||
Net income | 9 | (8) | ||||
Pro Forma [Member] | ||||||
Interest Income | 14,704 | 28,043 | ||||
Interest Expense | 1,852 | 3,249 | ||||
Net interest income | 12,852 | 24,794 | ||||
Credit for loan losses | (446) | (1,006) | ||||
Net interest income after provision for loan losses | 13,298 | 25,800 | ||||
Non-interest income | 5,036 | 11,376 | ||||
Non-interest expense | 14,565 | 28,449 | ||||
Income before income taxes | 3,769 | 8,727 | ||||
Income tax expense (benefit) | 975 | (1,913) | ||||
Net income | $ 2,794 | $ 10,640 | ||||
Pro Forma earnings per share, Basic | $ 0.86 | $ 3.43 | ||||
Pro Forma earnings per share, Diluted | $ 0.86 | $ 3.43 |
Acquisition (Preliminary Purcha
Acquisition (Preliminary Purchase Accounting Allocations) (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2017 | Sep. 30, 2017 | Sep. 08, 2017 | Dec. 31, 2016 | |
Goodwill | $ 25,432 | $ 10,072 | ||
Benchmark Bancorp, Inc. [Member] | ||||
Benchmark Bancorp shareholders' equity - June 30, 2017 plus/(minus) estimated fair value adjustments: | $ 17,847 | |||
Loan fair value | (3,046) | |||
Allowance for loan losses | 1,088 | |||
Loans, net | (1,958) | |||
Building | 142 | |||
OREO | (211) | |||
Core deposit intangible asset | 146 | |||
Deferred tax asset, net | 618 | |||
Deposits - fixed maturity | (418) | |||
Total fair value adjustments | (1,681) | |||
Estimated fair value of Benchmark Bancorp net assets at June 30, 2017 | 16,166 | $ 15,392 | ||
Total consideration paid to Benchmark Bancorp shareholders | 30,752 | |||
Goodwill | $ 14,586 | $ 15,360 |
Acquisition (A. Notes) (Details
Acquisition (A. Notes) (Details) - Benchmark Bancorp, Inc. [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Payments to Acquire Businesses, Gross | $ 30,752 | |
Business Acquisition, Transaction Costs | 145 | |
Business Combination, Consideration Transferred, Liabilities Incurred | 25,000 | |
Business Combination, Elimination Of Accumulated Deficit From Purchase Price | 7,814 | |
Business Combination, Elimination Of Accumulated Other Comprehensive Loss | $ 22 | |
Business Acquisition, Deposits Acquiried Amortize On An Accelerated Basis | 5 years | |
Business Combination, Income Tax Effect Impact Of Pro Forma Adjustments On Income Before Tax | 34.00% | |
Weighted Average Basic Shares Outstanding, Pro Forma | 3,267,020 | 3,289,497 |
Pro Forma Weighted Average Shares Outstanding, Diluted | 3,271,477 | 3,289,497 |
Core Deposits [Member] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years |
Securities (Amortized Cost and
Securities (Amortized Cost and Fair Value of Available-for-Sale Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost | $ 178,140 | $ 191,517 |
Fair value | 178,740 | 190,205 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost | 69,796 | 70,757 |
Fair value | 70,800 | 70,624 |
Mortgage-backed Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost | 107,342 | 119,758 |
Fair value | 106,948 | 118,595 |
Other Available-for-Sale Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost | 1,002 | 1,002 |
Fair value | $ 992 | $ 986 |
Securities (Gross Unrealized Ga
Securities (Gross Unrealized Gains and Losses on Available-for-Sale Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities gross unrealized gains | $ 1,813 | $ 1,413 |
Available-for-sale securities gross unrealized losses | 1,213 | 2,725 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities gross unrealized gains | 1,210 | 644 |
Available-for-sale securities gross unrealized losses | 206 | 777 |
Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities gross unrealized gains | 603 | 769 |
Available-for-sale securities gross unrealized losses | 997 | 1,932 |
Other Available-for-Sale Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale securities gross unrealized losses | $ 10 | $ 16 |
Loans and Leases (Narrative) (D
Loans and Leases (Narrative) (Details) | 9 Months Ended | |
Sep. 30, 2017USD ($)loan | Sep. 30, 2016USD ($) | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Impaired financing receivable, average recorded investment | $ 1,800,000 | $ 4,500,000 |
Impaired financing receivable, interest income, accrual method | 86,000 | 255,000 |
Provision charged to expenses | (350,000) | (700,000) |
TDR modifications | 0 | |
Ohio State Bancshares, Inc. [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Provision charged to expenses | $ 101,000 | $ 0 |
Troubled debt restructuring in default | loan | 1 | |
Benchmark Bancorp, Inc. [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Provision charged to expenses | $ 0 |
Loans and Leases (Activity in t
Loans and Leases (Activity in the Allowance for Loan Losses) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan and lease losses beginning balance | $ 3,345 | $ 3,834 |
Provision (credit) charged to expenses | (350) | (700) |
Losses charged-off | (657) | (129) |
Recoveries | 479 | 383 |
Allowance for loan and lease losses ending balance | 2,817 | 3,388 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan and lease losses beginning balance | 896 | 893 |
Provision (credit) charged to expenses | (374) | 163 |
Losses charged-off | (36) | (86) |
Recoveries | 78 | 28 |
Allowance for loan and lease losses ending balance | 564 | 998 |
Commercial and Multi-Family Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan and lease losses beginning balance | 1,876 | 2,540 |
Provision (credit) charged to expenses | (65) | (904) |
Losses charged-off | (553) | (11) |
Recoveries | 381 | 285 |
Allowance for loan and lease losses ending balance | 1,639 | 1,910 |
Residential 1 - 4 Family Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan and lease losses beginning balance | 542 | 373 |
Provision (credit) charged to expenses | 65 | 42 |
Losses charged-off | (45) | (24) |
Recoveries | 12 | 62 |
Allowance for loan and lease losses ending balance | 574 | 453 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan and lease losses beginning balance | 31 | 28 |
Provision (credit) charged to expenses | 24 | (1) |
Losses charged-off | (23) | (8) |
Recoveries | 8 | 8 |
Allowance for loan and lease losses ending balance | $ 40 | $ 27 |
Loans and Leases (Activity in37
Loans and Leases (Activity in the Allowance for Loan Losses by Portfolio Segment) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan and lease losses, attributable to loans individually evaluated for impairment | $ 98 | $ 1,018 |
Allowance for loan and lease losses, collectively evaluated for impairment | 2,719 | 2,327 |
Allowance for loan and lease losses | 2,817 | 3,345 |
Loans and leases individually evaluated for impairment | 886 | 2,917 |
Loans and leases collectively evaluated for impairment | 491,061 | 372,545 |
Total loans and leases balance | 493,089 | 376,086 |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases acquired with deteriorated credit quality | 1,142 | 624 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan and lease losses, attributable to loans individually evaluated for impairment | 98 | 399 |
Allowance for loan and lease losses, collectively evaluated for impairment | 466 | 497 |
Allowance for loan and lease losses | 564 | 896 |
Loans and leases individually evaluated for impairment | 490 | 937 |
Loans and leases acquired with deteriorated credit quality | 18,944 | 18,819 |
Loans and leases collectively evaluated for impairment | 64,284 | 62,782 |
Total loans and leases balance | 51,737 | 50,464 |
Commercial [Member] | Commercial Borrower [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total loans and leases balance | 64,774 | 63,719 |
Commercial and Multi-Family Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan and lease losses, attributable to loans individually evaluated for impairment | 619 | |
Allowance for loan and lease losses, collectively evaluated for impairment | 1,639 | 1,257 |
Allowance for loan and lease losses | 1,639 | 1,876 |
Loans and leases individually evaluated for impairment | 396 | 1,980 |
Loans and leases acquired with deteriorated credit quality | 72,587 | 48,999 |
Loans and leases collectively evaluated for impairment | 301,085 | 216,933 |
Total loans and leases balance | 302,396 | 219,486 |
Commercial and Multi-Family Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases acquired with deteriorated credit quality | 915 | 573 |
Residential 1 - 4 Family Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan and lease losses, collectively evaluated for impairment | 574 | 542 |
Allowance for loan and lease losses | 574 | 542 |
Loans and leases acquired with deteriorated credit quality | 110,227 | 88,659 |
Loans and leases collectively evaluated for impairment | 121,180 | 88,818 |
Total loans and leases balance | 121,407 | 88,869 |
Residential 1 - 4 Family Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans and leases acquired with deteriorated credit quality | 227 | 51 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Allowance for loan and lease losses, collectively evaluated for impairment | 40 | 31 |
Allowance for loan and lease losses | 40 | 31 |
Loans and leases acquired with deteriorated credit quality | 4,512 | 4,012 |
Loans and leases collectively evaluated for impairment | 4,512 | 4,012 |
Total loans and leases balance | $ 4,512 | $ 4,012 |
Loans and Leases (Loans Individ
Loans and Leases (Loans Individually Evaluated for Impairment) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with no related allowance | $ 396 | |
Recorded investment, with allowance recorded | 490 | 2,917 |
Total impaired loans and leases | 886 | 2,917 |
Amount of the allowance allocated to impaired loans and leases | 98 | 1,018 |
Commercial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with allowance recorded | 490 | 937 |
Amount of the allowance allocated to impaired loans and leases | 98 | 399 |
Commercial and Multi-Family Real Estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with no related allowance | $ 396 | |
Recorded investment, with allowance recorded | 1,980 | |
Amount of the allowance allocated to impaired loans and leases | $ 619 |
Loans and Leases (Nonaccrual Lo
Loans and Leases (Nonaccrual Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | $ 3,150 | $ 6,003 |
Loans and leases past due over 90 days and still accruing | 199 | 154 |
Troubled debt restructurings | 1,067 | 1,208 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 618 | 1,295 |
Loans and leases past due over 90 days and still accruing | ||
Troubled debt restructurings | 27 | 29 |
Commercial [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 1,573 | 3,462 |
Loans and leases past due over 90 days and still accruing | ||
Troubled debt restructurings | 604 | 722 |
Agriculture [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases past due over 90 days and still accruing | 73 | |
Agriculture [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 233 | 277 |
Loans and leases past due over 90 days and still accruing | ||
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 3 | |
Loans and leases past due over 90 days and still accruing | ||
Residential 1 - 4 Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 726 | 966 |
Loans and leases past due over 90 days and still accruing | 199 | 81 |
Troubled debt restructurings | 436 | $ 457 |
Residential Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans and leases past due over 90 days and still accruing |
Loans and Leases (Aging of the
Loans and Leases (Aging of the Recorded Investment in Past Due Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 4,220 | $ 4,239 |
Loans not past due | 488,869 | 371,847 |
Total loans and leases balance | 493,089 | 376,086 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3,278 | 2,436 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 55 | 704 |
Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 887 | 1,099 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 187 | 476 |
Loans not past due | 51,550 | 49,988 |
Total loans and leases balance | 51,737 | 50,464 |
Commercial [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 113 | 326 |
Commercial [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 71 | |
Commercial [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 74 | 79 |
Commercial [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 664 | 803 |
Loans not past due | 271,771 | 192,830 |
Total loans and leases balance | 272,435 | 193,633 |
Commercial [Member] | Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 125 | 103 |
Commercial [Member] | Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 23 | 147 |
Commercial [Member] | Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 516 | 553 |
Agriculture [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 60 | 227 |
Loans not past due | 12,977 | 13,026 |
Total loans and leases balance | 13,037 | 13,253 |
Agriculture [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 60 | 227 |
Agriculture [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | ||
Agriculture [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 10 | 5 |
Loans not past due | 29,951 | 25,850 |
Total loans and leases balance | 29,961 | 25,855 |
Agriculture [Member] | Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 10 | |
Agriculture [Member] | Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | ||
Agriculture [Member] | Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5 | |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3 | 12 |
Loans not past due | 4,509 | 4,000 |
Total loans and leases balance | 4,512 | 4,012 |
Consumer [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 10 | |
Consumer [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3 | 2 |
Residential 1 - 4 Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans and leases balance | 121,407 | 88,869 |
Residential 1 - 4 Family Real Estate [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3,296 | 2,716 |
Loans not past due | 118,111 | 86,153 |
Total loans and leases balance | 121,407 | 88,869 |
Residential 1 - 4 Family Real Estate [Member] | Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,970 | 1,770 |
Residential 1 - 4 Family Real Estate [Member] | Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 29 | 484 |
Residential 1 - 4 Family Real Estate [Member] | Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 297 | $ 462 |
Loans and Leases (Loans by Cred
Loans and Leases (Loans by Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 493,089 | $ 376,086 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 279,858 | 203,842 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 2,390 | 4,239 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 4,571 | 7,516 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | ||
Not Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 206,270 | 160,489 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 51,737 | 50,464 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 43,832 | 41,233 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,998 | 3,666 |
Commercial [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | ||
Commercial [Member] | Not Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 18,944 | 18,819 |
Commercial and Multi-Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 302,396 | 219,486 |
Commercial and Multi-Family Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 224,970 | 162,399 |
Commercial and Multi-Family Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 2,390 | 4,239 |
Commercial and Multi-Family Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 2,449 | 3,850 |
Commercial and Multi-Family Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | ||
Commercial and Multi-Family Real Estate [Member] | Not Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 72,587 | 48,999 |
Residential 1 - 4 Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 121,407 | 88,869 |
Residential 1 - 4 Family Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 11,056 | 210 |
Residential 1 - 4 Family Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 124 | |
Residential 1 - 4 Family Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | ||
Residential 1 - 4 Family Real Estate [Member] | Not Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 110,227 | 88,659 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 4,512 | 4,012 |
Consumer [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | ||
Consumer [Member] | Not Rated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 4,512 | $ 4,012 |
Loans and Leases (Performance o
Loans and Leases (Performance of the Loan Portfolio) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonimpaired loans | $ 18,944 | $ 18,819 |
Commercial [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonimpaired loans | 18,870 | 18,740 |
Commercial [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonimpaired loans | 74 | 79 |
Commercial and Multi-Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonimpaired loans | 72,587 | 48,999 |
Commercial and Multi-Family Real Estate [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonimpaired loans | 72,127 | 48,441 |
Commercial and Multi-Family Real Estate [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonimpaired loans | 460 | 558 |
Residential 1 - 4 Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonimpaired loans | 110,227 | 88,659 |
Residential 1 - 4 Family Real Estate [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonimpaired loans | 109,930 | 88,197 |
Residential 1 - 4 Family Real Estate [Member] | Nonperforming Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonimpaired loans | 297 | 462 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonimpaired loans | 4,512 | 4,012 |
Consumer [Member] | Performing Financial Instruments [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Nonimpaired loans | $ 4,512 | $ 4,012 |
Loans and Leases (Schedule of L
Loans and Leases (Schedule of Loans Acquired in Acquisition) (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Ohio State Bancshares, Inc. [Member] | Performing Financial Instruments [Member] | ||
Contractual Principal Receivable [Abstract] | ||
Contractual principal receivable, beginning balance | $ 34,416 | |
Contractual principal receivable, change due to payments received | (6,285) | |
Contractual principal receivable, ending balance | $ 28,131 | 28,131 |
Accretable Difference [Abstract] | ||
Accretable difference, beginning balance | (1,476) | |
Accretable difference, change due to payments received | 494 | |
Accretable difference, ending balance | (982) | (982) |
Carrying Amount [Abstract] | ||
Carrying amount, beginning balance | 32,940 | |
Carrying amount, change due to payments received | (5,791) | |
Carrying amount, ending balance | 27,149 | 27,149 |
Ohio State Bancshares, Inc. [Member] | Nonperforming Financial Instruments [Member] | ||
Contractual Principal Receivable [Abstract] | ||
Contractual principal receivable, beginning balance | 1,520 | |
Contractual principal receivable, change due to payments received | (288) | |
Contractual principal receivable, transfer to foreclosed real estate | (433) | |
Contractual principal receivable, change due to loan charge-off | (208) | |
Contractual principal receivable, ending balance | 591 | 591 |
Accretable Difference [Abstract] | ||
Non-accretable difference, beginning balance | (896) | |
Accretable difference, change due to payments received | 176 | |
Accretable difference, transfer to foreclosed real estate | 297 | |
Accretable difference, change due to loan charge-off | 107 | |
Non-accretable difference, ending balance | (316) | (316) |
Carrying Amount [Abstract] | ||
Carrying amount, beginning balance | 624 | |
Carrying amount, change due to payments received | (112) | |
Carrying amount, transfer to foreclosed real estate | (136) | |
Carrying amount, change due to loan charge-off | (101) | |
Carrying amount, ending balance | 275 | 275 |
Benchmark Bancorp, Inc. [Member] | Performing Financial Instruments [Member] | ||
Contractual Principal Receivable [Abstract] | ||
Contractual principal receivable, beginning balance | 96,914 | |
Contractual principal receivable, change due to payments received | (34) | |
Contractual principal receivable, transfer to foreclosed real estate | ||
Contractual principal receivable, change due to loan charge-off | ||
Contractual principal receivable, ending balance | 96,880 | 96,880 |
Accretable Difference [Abstract] | ||
Accretable difference, beginning balance | (2,273) | |
Accretable difference, change due to payments received | 1 | |
Accretable difference, transfer to foreclosed real estate | ||
Accretable difference, change due to loan charge-off | ||
Accretable difference, ending balance | (2,272) | (2,272) |
Carrying Amount [Abstract] | ||
Carrying amount, beginning balance | 94,641 | |
Carrying amount, change due to payments received | (33) | |
Carrying amount, transfer to foreclosed real estate | ||
Carrying amount, change due to loan charge-off | ||
Carrying amount, ending balance | 94,608 | 94,608 |
Benchmark Bancorp, Inc. [Member] | Nonperforming Financial Instruments [Member] | ||
Contractual Principal Receivable [Abstract] | ||
Contractual principal receivable, beginning balance | 1,641 | |
Contractual principal receivable, change due to payments received | ||
Contractual principal receivable, transfer to foreclosed real estate | ||
Contractual principal receivable, change due to loan charge-off | ||
Contractual principal receivable, ending balance | 1,641 | 1,641 |
Accretable Difference [Abstract] | ||
Non-accretable difference, beginning balance | (771) | |
Accretable difference, change due to payments received | ||
Accretable difference, transfer to foreclosed real estate | ||
Accretable difference, change due to loan charge-off | ||
Non-accretable difference, ending balance | (771) | (771) |
Carrying Amount [Abstract] | ||
Carrying amount, beginning balance | 870 | |
Carrying amount, change due to payments received | ||
Carrying amount, transfer to foreclosed real estate | ||
Carrying amount, change due to loan charge-off | ||
Carrying amount, ending balance | $ 870 | $ 870 |
Other Borrowings (Narrative) (D
Other Borrowings (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Federal Home Loan Bank borrowings | $ 25,000,000 | |
Other borrowings | 40,260,000 | $ 18,774,000 |
Loans Pledged as Collateral | 98,300,000 | $ 86,970,000 |
Note Payable with Interest at 4.875% [Member] | ||
Other borrowings | 10,000,000 | |
Debt Instrument, Periodic Payment, Principal | $ 250,000 | |
Debt Instrument, Date of First Required Payment | Dec. 1, 2017 | |
Debt Instrument, Maturity Date | Sep. 1, 2022 |
Other Borrowings (Composition o
Other Borrowings (Composition of Other Borrowings) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Federal Home Loan Bank borrowings: | ||
Federal Home Loan Bank borrowings | $ 25,000,000 | |
Total other borrowings | 40,260,000 | $ 18,774,000 |
Secured Notes, with Interest at 0,74% [Member] | ||
Federal Home Loan Bank borrowings: | ||
Federal Home Loan Bank borrowings | $ 18,774,000 | |
Debt instrument, interest rate, stated percentage | 0.74% | |
Debt instrument, maturity date | Mar. 1, 2017 | |
Secured Notes, with Interest at 1.27% [Member] | ||
Federal Home Loan Bank borrowings: | ||
Federal Home Loan Bank borrowings | $ 5,160,000 | |
Debt instrument, interest rate, stated percentage | 1.27% | |
Debt instrument, maturity date | Dec. 1, 2017 | |
Secured Notes, with Interest at 0.0% [Member] | ||
Federal Home Loan Bank borrowings: | ||
Federal Home Loan Bank borrowings | $ 100,000 | |
Debt instrument, interest rate, stated percentage | 0.00% | |
Debt instrument, maturity date | Oct. 1, 2018 | |
Secured Notes, with Interest at 1.56% [Member] | ||
Federal Home Loan Bank borrowings: | ||
Federal Home Loan Bank borrowings | $ 7,000,000 | |
Debt instrument, interest rate, stated percentage | 1.56% | |
Debt instrument, maturity date | Sep. 1, 2021 | |
Secured Notes, with Interest at 1.72% [Member] | ||
Federal Home Loan Bank borrowings: | ||
Federal Home Loan Bank borrowings | $ 6,000,000 | |
Debt instrument, interest rate, stated percentage | 1.72% | |
Debt instrument, maturity date | Sep. 1, 2020 | |
Secured Notes, with Interest at 1.86% [Member] | ||
Federal Home Loan Bank borrowings: | ||
Federal Home Loan Bank borrowings | $ 6,000,000 | |
Debt instrument, interest rate, stated percentage | 1.86% | |
Debt instrument, maturity date | Sep. 1, 2021 | |
Secured Notes, with Interest at 1.97% [Member] | ||
Federal Home Loan Bank borrowings: | ||
Federal Home Loan Bank borrowings | $ 6,000,000 | |
Debt instrument, interest rate, stated percentage | 1.97% | |
Debt instrument, maturity date | Sep. 1, 2022 | |
Note Payable with Interest at 4.875% [Member] | ||
Federal Home Loan Bank borrowings: | ||
Total other borrowings | $ 10,000,000 | |
Debt instrument, interest rate, stated percentage | 4.875% | |
Debt instrument, maturity date | Sep. 1, 2022 |
Junior Subordinated Deferrabl46
Junior Subordinated Deferrable Interest Debentures (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Investments in and Advances to Affiliates, Balance, Principal Amount | $ 300,000 | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 10,000,000 | ||
Trust preferred | $ 12,832,000 | $ 12,806,000 | |
Subordinated Borrowing, Interest Rate | 4.16% | 4.15% | |
Interest Expense, Debt | $ 411,000 | $ 365,000 | |
Maximum Amount of Core Capital | 25.00% | ||
Maximum Consecutive Period that Interest Payments may be Deferred | 5 years | ||
Junior Subordinated Debt [Member] | |||
Debt Instrument, Maturity Date | Mar. 26, 2033 | ||
Trust Preferred Securities [Member] | |||
Trust preferred | $ 10,300,000 | ||
London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 3.15% | ||
Ohio State Bancshares, Inc. [Member] | |||
Other Debt, Carrying Value | $ 2,532,000 | $ 2,506,000 | |
Ohio State Bancshares, Inc. [Member] | Trust Preferred Securities [Member] | |||
Subordinated Borrowing, Interest Rate | 4.48% | 3.73% | |
Debt Instrument, Basis Spread on Variable Rate | 2.85% | ||
Debt Instrument, Maturity Date | Apr. 23, 2034 | ||
Liability Assumed | $ 3,093,000 | ||
Ohio State Bancshares, Inc. [Member] | Guaranteed Trust Preferred Securities [Member] | |||
Liability Assumed | 3,000,000 | ||
Ohio State Bancshares, Inc. [Member] | Trust Preferred Securities Secured by an Investment [Member] | |||
Liability Assumed | $ 93,000 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value assets moved to a lower level fair value hierarchy | $ 0 | |
Gain (loss) relating to securities available-for-sale included in earnings | 0 | $ 0 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities, fair value | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities, fair value | 0 | 0 |
Assets, nonrecurring, fair value | $ 788,000 | 1,899,000 |
Minimum [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, discount rate | 9.00% | |
Minimum [Member] | Additional Appraisal Adjustments [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, discount rate | 15.00% | |
Minimum [Member] | Additional Appraisal Adjustments [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, discount rate | 10.00% | |
Minimum [Member] | Estimated Selling Costs [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, discount rate | 10.00% | |
Minimum [Member] | Estimated Selling Costs [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, discount rate | 10.00% | |
Maximum [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, discount rate | 11.00% | |
Maximum [Member] | Additional Appraisal Adjustments [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, discount rate | 35.00% | |
Maximum [Member] | Additional Appraisal Adjustments [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, discount rate | 70.00% | |
Maximum [Member] | Estimated Selling Costs [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, discount rate | 20.00% | |
Maximum [Member] | Estimated Selling Costs [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, discount rate | 20.00% | |
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, recurring, fair value | $ 1,231,000 | $ 1,247,000 |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation and Income Statement Classification of Gains and Losses) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Servicing Contracts [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of period | $ 1,247 | $ 1,181 |
Purchases, issuances, and settlements | 138 | 273 |
Disposals - amortization based on loan payments and payoffs | (97) | (195) |
Changes in fair value | (57) | (12) |
Balance at end of period | 1,231 | 1,247 |
Fair Value, Inputs, Level 3 [Member] | Securities (Assets) [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at beginning of period | 2,238 | 2,389 |
Principal payments received | (2,238) | (151) |
Changes in fair value | ||
Balance at end of period | $ 2,238 |
Fair Value of Financial Instr49
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Other commitments | $ 127,752,000 | $ 91,023,000 |
Fair Value of Financial Instr50
Fair Value of Financial Instruments (Carrying Amounts and Estimated Fair Values of Recognized Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total Assets | $ 696,387 | $ 584,965 |
Total financial liabilities | 687,182 | 551,881 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 13,849 | 14,186 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Non-Maturity Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposits estimated value | 461,075 | 395,220 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Certificates of deposit | 1,245 | 1,494 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for sale | 6,993 | 1,510 |
Net loans | 489,027 | 371,493 |
Mortgage servicing rights | 1,231 | 1,247 |
Other borrowings | 40,276 | 18,774 |
Junior subordinated deferrable interest debentures | 10,213 | 9,295 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Maturity Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposits estimated value | 175,618 | 128,592 |
Estimate of Fair Value Measurement [Member] | Fair Value Inputs Level 2, and 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities, including Federal Home Loan Bank stock | 184,042 | 195,035 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 13,849 | 14,186 |
Securities, including Federal Home Loan Bank stock | 184,042 | 195,035 |
Certificates of deposit | 1,245 | 1,494 |
Loans held for sale | 6,993 | 1,510 |
Net loans | 490,272 | 372,741 |
Mortgage servicing rights | 1,231 | 1,247 |
Total Assets | 697,632 | 586,213 |
Other borrowings | 40,260 | 18,774 |
Junior subordinated deferrable interest debentures | 12,832 | 12,806 |
Total financial liabilities | 690,766 | 556,260 |
Reported Value Measurement [Member] | Maturity Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposits estimated value | 176,599 | 129,460 |
Reported Value Measurement [Member] | Non-Maturity Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposits estimated value | $ 461,075 | $ 395,220 |
Stock Options (Narrative) (Deta
Stock Options (Narrative) (Details) - Stock Option Plan [Member] - USD ($) | 2 Months Ended | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total compensation expense for share based compensation plan | $ 222,000 | $ 222,000 | $ 222,000 | |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share authorized for issuance under the stock options plan | 250,000 | 250,000 | 250,000 | |
Options issued | 30,151 | 33,352 | ||
Options exercise price | $ 21.70 | $ 21.70 | $ 19.32 | $ 21.70 |
Options vesting period | 3 years | |||
Options exercisable | 0 | 0 | 0 | |
Outstanding option weighted average remaining contractual term | 6 years 7 months 16 days | |||
Total compensation expense for share based compensation plan | $ 209,000 | $ 209,000 | $ 209,000 | |
Share based compensation expense period for recognition | 36 months | 36 months | ||
Share based compensation expense | $ 30,000 | $ 65,000 |
Stock Options (Summary of Activ
Stock Options (Summary of Activity for Stock Options) (Details) | 9 Months Ended |
Sep. 30, 2017shares | |
Stock Options [Abstract] | |
Outstanding, beginning of period | 33,352 |
Granted | 30,151 |
Exercised | |
Outstanding, end of period | 63,503 |
Stock Options (Schedule of Assu
Stock Options (Schedule of Assumptions Used in Calculating the Fair Value of Options Granted) (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Stock Options [Abstract] | ||
Weighted-average fair value of options granted | $ 7.35 | $ 6.27 |
Average dividend yield | 2.23% | 2.31% |
Expected volatility | 40.00% | 40.00% |
Risk-free interest rate | 2.06% | 1.58% |
Expected term (years) | 7 years | 7 years |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Subsequent Event [Member] | Oct. 17, 2017$ / shares |
Subsequent Event [Line Items] | |
Dividends, date declared | Oct. 17, 2017 |
Dividends payable (dollars per share) | $ 0.12 |
Dividends, date to be paid | Dec. 15, 2017 |
Dividends, date of record | Nov. 30, 2017 |