Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 11, 2015 | Jun. 30, 2014 |
Document Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | mfsf | ||
Entity Registrant Name | MUTUALFIRST FINANCIAL INC | ||
Entity Central Index Key | 1094810 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 7,347,702 | ||
Entity Public Float | $109.50 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $7,475 | $8,013 |
Interest-bearing demand deposits | 22,100 | 17,272 |
Cash and cash equivalents | 29,575 | 25,285 |
Investment securities available for sale | 260,806 | 264,348 |
Loans held for sale | 6,140 | 1,888 |
Loans, net of allowance for loan losses of $13,168 and $13,412, at December 31, 2014, and 2013, respectively | 1,003,518 | 965,966 |
Premises and equipment, net | 30,939 | 31,471 |
Federal Home Loan Bank stock | 11,964 | 14,391 |
Investment in limited partnerships | 1,582 | 2,092 |
Deferred tax asset | 13,305 | 17,002 |
Cash value of life insurance | 51,002 | 49,843 |
Goodwill | 1,800 | |
Core deposit and other intangibles | 1,105 | 1,629 |
Other assets | 12,472 | 17,490 |
Total assets | 1,424,208 | 1,391,405 |
Deposits | ||
Noninterest-bearing | 154,178 | 144,195 |
Interest-bearing | 925,142 | 968,889 |
Total deposits | 1,079,320 | 1,113,084 |
Federal Home Loan Bank advances | 192,442 | 142,928 |
Other borrowings | 10,174 | 10,890 |
Other liabilities | 14,735 | 12,861 |
Total liabilities | 1,296,671 | 1,279,763 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock, $.01 par value Authorized - 20,000,000 shares Issued and outstanding - 7,236,002 and 7,117,179 shares | 72 | 71 |
Additional paid-in capital | 74,916 | 73,336 |
Retained earnings | 50,171 | 41,650 |
Accumulated other comprehensive income (loss) | 2,378 | -3,415 |
Total stockholders' equity | 127,537 | 111,642 |
Total liabilities and stockholders' equity | $1,424,208 | $1,391,405 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Allowance for loan losses | $13,168 | $13,412 |
Common stock, par value | $0.01 | $0.01 |
Common stock, Authorized | 20,000,000 | 20,000,000 |
Common stock, shares Issued | 7,236,002 | 7,117,179 |
Common stock, shares outstanding | 7,236,002 | 7,117,179 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest and Dividend Income | |||
Loans receivable | $43,522 | $44,028 | $46,095 |
Investment securities | 7,036 | 7,107 | 8,751 |
Federal Home Loan Bank stock | 603 | 503 | 450 |
Deposits with financial institutions | 17 | 29 | 52 |
Total interest and dividend income | 51,178 | 51,667 | 55,348 |
Interest Expense | |||
Deposits | 6,128 | 9,337 | 11,800 |
Federal Home Loan Bank advances | 2,225 | 1,284 | 2,119 |
Other | 570 | 603 | 785 |
Total interest expense | 8,923 | 11,224 | 14,704 |
Net Interest Income | 42,255 | 40,443 | 40,644 |
Provision for loan losses | 850 | 1,300 | 6,025 |
Net Interest Income After Provision for Loan Losses | 41,405 | 39,143 | 34,619 |
Other Income | |||
Service fee income | 5,995 | 5,989 | 6,492 |
Net realized gain on sales of available-for-sale securities | 313 | 835 | 2,831 |
Commissions | 4,868 | 4,354 | 3,894 |
Equity in losses of limited partnerships | -385 | -453 | -498 |
Net gains on sales of loans | 1,849 | 852 | 1,870 |
Net servicing fees (expense) | 114 | 556 | -203 |
Increase in cash value of life insurance | 1,158 | 1,396 | 1,351 |
Loss on sale of other real estate and repossessed assets | -53 | -320 | -564 |
Other income | 515 | 343 | 351 |
Total other income | 14,374 | 13,552 | 15,524 |
Other Expenses | |||
Salaries and employee benefits | 23,560 | 22,492 | 21,335 |
Net occupancy expenses | 2,258 | 2,087 | 2,339 |
Equipment expenses | 1,872 | 1,837 | 1,846 |
Data processing fees | 1,558 | 1,431 | 1,539 |
Advertising and promotion | 1,497 | 1,464 | 1,602 |
ATM and debit card expenses | 1,320 | 1,132 | 977 |
Deposit insurance | 1,019 | 1,145 | 1,260 |
Professional fees | 1,628 | 1,394 | 1,616 |
Software subscriptions and maintenance | 1,652 | 1,452 | 1,471 |
Other real estate and repossessed assets | 631 | 773 | 881 |
Other expenses | 4,383 | 4,480 | 5,399 |
Total other expenses | 41,378 | 39,687 | 40,265 |
Income Before Income Tax | 14,401 | 13,008 | 9,878 |
Income tax expense | 3,583 | 3,808 | 2,632 |
Net Income | 10,818 | 9,200 | 7,246 |
Preferred stock dividends and accretion | 1,257 | 1,446 | |
Net Income Available to Common Shareholders | $10,818 | $7,943 | $5,800 |
Earnings Per Share | |||
Basic | $1.51 | $1.12 | $0.83 |
Diluted | $1.46 | $1.09 | $0.82 |
Dividends per common share | $0.32 | $0.24 | $0.24 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | |||||||||||||||
Net income | $3,604 | $2,694 | $2,557 | $1,963 | $2,640 | $2,472 | $2,112 | $1,976 | $2,003 | $2,173 | $1,644 | $1,426 | $10,818 | $9,200 | $7,246 |
Other comprehensive income: | |||||||||||||||
Net unrealized holding gain (loss) on securities available-for-sale | 8,921 | -9,810 | 4,782 | ||||||||||||
Net unrealized gain (loss) on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income | 381 | 800 | 43 | ||||||||||||
Reclassification adjustment for realized gains included in net income | -313 | -835 | -2,831 | ||||||||||||
Net unrealized gain on derivative used for cash flow hedges | 150 | 157 | 56 | ||||||||||||
Net unrealized gain (loss) relating to defined benefit plan | -209 | 149 | 399 | ||||||||||||
Other Comprehensive Income (Loss), before Tax, Total | 8,930 | -9,539 | 2,449 | ||||||||||||
Income tax (expense) benefit related to other comprehensive income | -3,137 | 3,321 | -849 | ||||||||||||
Other comprehensive income (loss) | 5,793 | -6,218 | 1,600 | ||||||||||||
Comprehensive income (Loss) | $16,611 | $2,982 | $8,846 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Preferred Stock [Member] | Paid-in Capital Preferred [Member] | Common Stock [Member] | Paid-in Capital Common [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Unearned Benefit Plan Shares [Member] | Total |
In Thousands | ||||||||
Beginning Balance at Dec. 31, 2011 | $1 | $28,923 | $70 | $71,796 | $31,270 | $1,203 | ($636) | $132,627 |
Net income | 7,246 | 7,246 | ||||||
Other comprehensive income, net of taxes | 1,600 | 1,600 | ||||||
Stock options, exercised | 1 | 550 | 551 | |||||
Stock options, vested | 253 | 253 | ||||||
Cash dividends, common stock | -1,667 | -1,667 | ||||||
Cash dividends, preferred stock (5%) | -1,446 | -1,446 | ||||||
ESOP shares earned | 11 | 318 | 329 | |||||
Ending Balance at Dec. 31, 2012 | 1 | 28,923 | 71 | 72,610 | 35,403 | 2,803 | -318 | 139,493 |
Net income | 9,200 | 9,200 | ||||||
Other comprehensive income, net of taxes | -6,218 | -6,218 | ||||||
Stock options, exercised | 538 | 538 | ||||||
Stock options, vested | 32 | 32 | ||||||
Stock repurchased and retired | -1 | -28,923 | -28,924 | |||||
Cash dividends, common stock | -1,696 | -1,696 | ||||||
Cash dividends, preferred stock (5%) | -1,257 | -1,257 | ||||||
ESOP shares earned | 156 | 318 | 474 | |||||
Ending Balance at Dec. 31, 2013 | 71 | 73,336 | 41,650 | -3,415 | 111,642 | |||
Net income | 10,818 | 10,818 | ||||||
Other comprehensive income, net of taxes | 5,793 | 5,793 | ||||||
Stock options, exercised | 1 | 1,346 | 1,347 | |||||
Tax benefit on stock options | 234 | 234 | ||||||
Cash dividends, common stock | -2,297 | -2,297 | ||||||
Ending Balance at Dec. 31, 2014 | $72 | $74,916 | $50,171 | $2,378 | $127,537 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Statement Of Stockholders Equity [Abstract] | ||
Cash dividends, common stock, per share | $0.24 | $0.24 |
Cash dividends, preferred stock, percentage | 5.00% | 5.00% |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities | |||
Net income | $10,818 | $9,200 | $7,246 |
Items not requiring cash | |||
Provision for loan losses | 850 | 1,300 | 6,025 |
Depreciation and amortization | 4,113 | 5,756 | 6,736 |
Deferred income tax | 914 | 2,213 | 582 |
Loans originated for sale | -67,295 | -67,787 | -42,060 |
Proceeds from sales of loans held for sale | 64,614 | 70,926 | 43,171 |
Gain on sale of loans held for sale | -1,849 | -852 | -1,870 |
Gain on sale of securities - available for sale | -313 | -835 | -2,831 |
Loss on sale of other real estate and repossessed assets | 53 | 320 | 564 |
Prepaid FDIC premium | 1,647 | 1,174 | |
Change in | |||
Interest receivable and other assets | -213 | -412 | 1,201 |
Interest payable and other liabilities | 774 | 507 | 726 |
Cash value of life insurance | -1,158 | -1,396 | -1,351 |
Other equity adjustments | 474 | 624 | |
Other adjustments | 702 | 558 | 524 |
Net cash provided by operating activities | 12,010 | 21,619 | 20,461 |
Investing Activities | |||
Net change in interest earning deposits | 1,415 | ||
Purchases of securities | |||
Purchases of securities, available for sale | -48,001 | -99,766 | -114,448 |
Proceeds from maturities and paydowns of securities | |||
Available for sale | 31,709 | 53,348 | 68,847 |
Proceeds from sales of securities, available for sale | 28,317 | 53,179 | 98,326 |
Redemption of Federal Home Loan Bank stock | 2,427 | ||
Net change in loans | -41,611 | -3,863 | -88,639 |
Proceeds from sales of loans transferred to held for sale | 3,669 | ||
Purchases of premises and equipment | -1,306 | -1,025 | -2,139 |
Cash paid in acquisition, net | -900 | ||
Proceeds from real estate owned sales | 7,605 | 3,753 | 4,539 |
Net cash provided by (used in) investing activities | -21,760 | 5,626 | -28,430 |
Net change in | |||
Noninterest-bearing, interest-bearing demand and savings deposits | 36,828 | 35,215 | 79,986 |
Certificates of deposit | -70,593 | -106,140 | -64,334 |
Proceeds from FHLB advances | 493,700 | 355,375 | 496,650 |
Repayment of FHLB advances | -444,186 | -287,122 | -523,369 |
Repayment of other borrowings | -759 | -759 | -847 |
Redemption of preferred stock | -28,924 | ||
Cash dividends | -2,297 | -2,953 | -3,113 |
Other financing activities | 1,347 | 570 | 551 |
Net cash provided by (used in) financing activities | 14,040 | -34,738 | -14,476 |
Net Change in Cash and Cash Equivalents | 4,290 | -7,493 | -22,445 |
Cash and Cash Equivalents, Beginning of Period | 25,285 | 32,778 | 55,223 |
Cash and Cash Equivalents, End of Period | 29,575 | 25,285 | 32,778 |
Additional Cash Flows Information | |||
Interest paid | 8,857 | 11,145 | 14,808 |
Income tax paid | 2,500 | 1,800 | 600 |
Transfers from loans to foreclosed real estate | 2,129 | 5,038 | 5,254 |
Mortgage servicing rights capitalized | $278 | $464 | $294 |
Nature_of_Operations_and_Summa
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Note 1: Nature of Operations and Summary of Significant Accounting Policies |
The accounting and reporting policies of MutualFirst Financial, Inc. (Company) and its wholly owned subsidiaries, MFBC Statutory Trust and MutualBank (Bank) and the Bank’s wholly owned subsidiaries, Mishawaka Financial Services, Mutual Federal Investment Company and the wholly owned subsidiary of Mutual Federal Investment Company, Mutual Federal REIT, Inc. and Summit Service Corp. and the wholly owned subsidiary of Summit Service Corp., Summit Mortgage, Inc., conform to accounting principles generally accepted in the United States of America and reporting practices followed by the banking industry. The more significant of the policies are described below. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, goodwill, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, loan servicing rights, valuation of deferred tax assets, other-than-temporary impairments (OTTI) and fair value of financial instruments. | |
The Bank generates mortgage, consumer and commercial loans and receives deposits from customers located primarily in North and Central Indiana. The Bank’s loans are generally secured by specific items of collateral including real property, consumer assets and business assets. Mutual Federal Investment Company invests in various investment securities and loans through Mutual Federal REIT, Inc. | |
Consolidation - The consolidated financial statements include the accounts of the Company, the Bank, and the Bank’s subsidiaries, after elimination of all material intercompany transactions. | |
Cash Equivalents - The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2014 and 2013, cash equivalents consisted primarily of money market accounts with brokers and checking accounts with government sponsored entities. | |
At December 31, 2014, the Company’s cash accounts exceeded federally insured limits by approximately $12.2 million. Included in this amount are uninsured accounts of approximately $2.2 million at the Federal Reserve Bank of Chicago and Federal Home Loan Bank of Indianapolis. The majority of the remaining funds, $9.2 million, were held in a money market account for investment purchases. | |
Investment Securities - Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. At December 31, 2014 and 2013, no securities were classified as held to maturity. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. When the Company does not intend to sell a debt security, and it is more likely than not that, the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. | |
The Company’s consolidated statement of income reflects the full impairment (that is, the differences between the security’s amortized cost basis and fair value) on debt securities that the Company intends to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. For available-for-sale and held-to-maturity debt securities that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections. | |
For equity securities, when the Company has decided to sell an impaired available-for-sale security and does not expect the fair value of the security to fully recover before the expected time of sale, the security is deemed other-than-temporarily impaired in the period in which the decision to sell is made. The Company recognizes an impairment loss when the impairment is deemed other than temporary even if a decision to sell has not been made. | |
Declines in the fair value of securities below their cost that are other-than-temporary are reflected as realized losses. In estimating other-than-temporary losses, management considers the length of time and extent that fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the Company’s ability and intent to hold the security for a period sufficient to allow for any anticipated recovery in fair value. | |
Loans held for sale are carried at the lower of aggregate cost or market. Market is determined using the aggregate method. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income based on the difference between estimated sales proceeds and aggregate cost. | |
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. | |
For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. | |
The accrual of interest on mortgage, consumer and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. | |
All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |
Discounts and premiums on purchased residential real estate and commercial loans is amortized to income using the interest method over the remaining period to contractual maturity, adjusted for anticipated prepayments. Discounts and premiums on purchased consumer loans are recognized over the expected lives of the loans using methods that approximate the interest method. | |
Allowance for loan losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the inability to collect a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | |
We maintain an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on ongoing, quarterly assessments of the estimated losses inherent in the loan portfolio. Our methodology for assessing the appropriateness of the allowance consists of several key elements, including the general allowance and specific allowances for identified problem loans and portfolio segments. In addition, the allowance incorporates the results of measuring impaired loans as provided in ASC 310, Receivables. These accounting standards prescribe the measurement methods, income recognition and disclosures related to impaired loans. | |
The general allowance is calculated by applying loss factors to outstanding loans based on the internal risk evaluation of such loans or pools of loans. Changes in risk evaluations of both performing and nonperforming loans affect the amount of the general allowance. Loss factors are based on our historical loss experience as well as on significant factors that, in management’s judgment, affect the collectability of the portfolio as of the evaluation date. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior three years. Management believes the three year historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates that are comparable to the current period being analyzed. | |
The appropriateness of the allowance is reviewed by management based upon its evaluation of then-existing economic and business conditions affecting our key lending areas and other conditions, such as credit quality trends (including trends in non-performing loans expected to result from existing conditions), collateral values, loan volumes and concentrations, specific industry conditions within portfolio segments and recent loss experience in particular segments of the portfolio that existed as of the balance sheet date and the impact that such conditions were believed to have had on the collectability of the loan. Senior management reviews these conditions quarterly in discussions with our senior credit officers. To the extent that any of these conditions is evidenced by a specifically identifiable problem credit or portfolio segment as of the evaluation date, management’s estimate of the effect of such condition may be reflected as a specific allowance applicable to such credit or portfolio segment. Where any of these conditions is not evidenced by a specifically identifiable problem credit or portfolio segment as of the evaluation date, management’s evaluation of the loss related to this condition is reflected in the general allowance for loan losses. The evaluation of the inherent loss with respect to these conditions is subject to a higher degree of uncertainty because they are not identified with specific problem credits or portfolio segments. | |
The allowance for loan losses is based on estimates of losses inherent in the loan portfolio. Actual losses can vary significantly from the estimated amounts. Our methodology as described permits adjustments to any loss factor used in the computation of the general allowance in the event that, in management’s judgment, significant factors which affect the collectability of the portfolio as of the evaluation date are not reflected in the loss factors. By assessing the probable incurred losses inherent in the loan portfolio on a quarterly basis, we are able to adjust specific and inherent loss estimates based upon any more recent information that has become available. Although employment began to stabilize in the prior year, the impact of job losses over the recent years combined with the decline in real estate values and the increase in higher risk loans, like consumer and commercial loans, as a percentage of total loans, management has concluded that our allowance for loan losses should be greater than historical loss experience and specifically identified losses would otherwise indicate. | |
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the ability to collect the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | |
The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. | |
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. | |
Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. | |
Premises and equipment are carried at cost net of accumulated depreciation. Depreciation is computed using the straight-line method based principally on the estimated useful lives of the assets which range from 3 to 50 years. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on dispositions are included in current operations. | |
Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank (FHLB) system. The required investment in the common stock is based on a predetermined formula, carried at cost and is evaluated for impairment. | |
Mortgage-servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance, servicing rights resulting from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. The Company subsequently measures each class of servicing asset using the amortization method. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment based on fair value at each reporting date. | |
Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage servicing right and may result in a reduction to noninterest income. | |
Each class of separately recognized servicing assets subsequently measured using the amortization method are evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported with net servicing fees on the income statement. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized. | |
Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. | |
Investment in limited partnerships is recorded primarily on the equity method of accounting. Losses due to impairment are recorded when it is determined that the investment no longer has the ability to recover its carrying amount. The benefits of low income housing tax credits associated with the investment are accrued when earned. | |
Intangible assets are being amortized on an accelerated basis over periods ranging from five to 11 years. Such assets are periodically evaluated as to the recoverability of their carrying value. | |
Income taxes are accounted for in accordance with income tax accounting guidance. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. | |
Deferred tax assets are evaluated on a quarterly basis for recoverability based on all available evidence. This process involves significant management judgment about assumptions that are subject to change from period to period based on changes in tax laws or variances between our future projected operating performance and our actual results. We are required to establish a valuation allowance for deferred tax assets if we determine, based on available evidence at the time the determination is made, that it is more likely than not that some portion or all of the deferred tax assets will not be realized. In determining the more-likely-than-not criterion, we evaluate all positive and negative available evidence as of the end of each reporting period. Future adjustments to the deferred tax asset valuation allowance, if any, will be determined based upon changes in the expected realization of the net deferred tax assets. The realization of the deferred tax assets ultimately depends on the existence of sufficient taxable income in either the carry back or carry forward periods under applicable tax laws. Due to significant estimates utilized in establishing the valuation allowance and the potential for changes in facts and circumstances, it is reasonably possible that we will be required to record adjustments to the valuation allowance in the near term if estimates of future taxable income during the carry forward period are reduced. Such a charge could have a material adverse effect on our results of operations, financial condition, and capital position. | |
Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. | |
The Company recognizes interest and penalties on income taxes as a component of income tax expense. | |
The Company files consolidated income tax returns with its subsidiaries. | |
Earnings per share is computed based upon the weighted-average common and common equivalent shares outstanding during each year. | |
Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized gains (losses) on available-for-sale securities, unrealized gains (losses) on available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income, unrealized and realized gains and losses in derivative financial instruments and changes in the funded status of defined benefit pension plans. | |
Stock options. The Company has stock-based employee compensation plans, which are described more fully in Note 22. | |
Impact_of_Accounting_Pronounce
Impact of Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Impact of Accounting Pronouncements [Abstract] | |
Impact of Accounting Pronouncements | Note 2: Impact of Accounting Pronouncements |
In August 2014, Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The Update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. | |
The amendments in this Update are effective for annual reporting periods ending after December 15, 2016, and for annual and interim periods thereafter. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
In August 2014, FASB, issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure. The objective of this Update is to reduce diversity in practice by addressing the classification of foreclosed mortgage loans that are fully or partially guaranteed under government programs. Currently, some creditors reclassify those loans to real estate as with other foreclosed loans that do not have guarantees; others reclassify the loans to other receivables. The amendments affect creditors that hold government-guaranteed mortgage loans, including those guaranteed by the FHA and the VA. | |
The amendments in this Update are effective for annual reporting periods ending after December 15, 2015 and interim periods beginning after December 15, 2015. An entity should adopt the amendments in this Update using either a prospective transition method or a modified retrospective transition method. For prospective transition, an entity should apply the amendments in this Update to foreclosures that occur after the date of adoption. For the modified retrospective transition, an entity should apply the amendments in the Update by means of a cumulative-effect adjustment (through a reclassification to a separate other receivable) as of the beginning of the annual period of adoption. Prior periods should not be adjusted. However, a reporting entity must apply the same method of transition as elected under ASU No. 2014-04. Early adoption, including adoption in an interim period, is permitted if the entity already has adopted Update 2014-04. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
In June 2014, (FASB) issued (ASU) 2014-12 “Compensation – Stock Compensation”. This update defines the accounting treatment for share-based payments and “resolves the diverse accounting treatment of those awards in practice.” The new requirement mandates that “a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.” Compensation cost will now be recognized in the period in which it becomes likely that the performance target will be met. | |
The amendments in this Update are effective for annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
In June 2014, FASB, issued ASU 2014-11 “Transfers and Servicing”. This update addresses the concerns of stakeholders’ by changing the accounting practices surrounding repurchase agreements. The new guidance changes the “accounting for repurchase-to-maturity transactions and linked repurchase financings to secured borrowing accounting, which is consistent with the accounting for other repurchase agreements.” | |
The amendments in this Update are effective for annual reporting periods beginning after December 15, 2015. Early adoption is prohibited. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
In May 2014, FASB, in joint cooperation with IASB, issued ASU 2014-09 “Revenue from Contracts with Customers”. The topic of Revenue Recognition had become broad, with several other regulatory agencies issuing standards which lacked cohesion. The new guidance establishes a “common framework” and “reduces the number of requirements to which an entity must consider in recognizing revenue” and yet provides improved disclosures to assist stakeholders reviewing financial statements. | |
The amendments in this Update are effective for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
In April 2014, FASB issued ASU 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. This update seeks to better define the groups of assets which qualify for discontinued operations, in order to ease the burden and cost for prepares and stakeholders. This issue changed “the criteria for reporting discontinued operations” and related reporting requirements, including the provision for disclosures about the “disposal of and individually significant component of an entity that does not qualify for discontinued operations presentation.” | |
The amendments in this Update are effective for fiscal years beginning after December 15, 2014. Early adoption is permitted only for disposals or classifications as held for sale. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
In January 2014, FASB issued ASU 2014-04, "Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure,” to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Company’s consolidated financial statements. | |
In January 2014, the FASB issued ASU 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects,” to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The ASU modifies the conditions that an entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The Company is currently evaluating the impact of this new accounting standard on the consolidated financial statements. | |
Recently the FASB and the Internal Accounting Standards Board (IASB) (the Boards) have published for public comment revised Exposure Drafts outlining proposed changes to the accounting for leases. The proposals aim to improve the quality and comparability of financial reporting by providing greater transparency about leverage, the assets an organization uses in its operations and the risks to which it is exposed from entering into leasing transactions. Under existing accounting standards, a majority of leases are not reported on a lessee’s balance sheet. The amounts involved can be substantial. Additionally, the existing accounting models for leases require lessees and lessors to classify their leases as either capital leases (e.g., a lease of equipment for nearly all of its economic life) or operating leases (e.g., a lease of office space for 10 years) and to account for those leases differently. | |
For capital leases, a lessee recognizes lease assets and liabilities on the balance sheet. For operating leases, a lessee does not recognize lease assets or liabilities on the balance sheet. The existing standards have been criticized for failing to meet the needs of users of financial statements because they do not always provide a complete representation of leasing transactions. In response to this criticism, in 2006 the Boards initiated a joint project to improve the financial reporting of leasing activities under International Financial Reporting Standards (IFRSs) and U.S. GAAP. The Boards have developed an approach to lease accounting that would require a lessee to recognize assets and liabilities for the rights and obligations created by leases. A lessee would recognize assets and liabilities for leases of more than 12 months. | |
Stakeholders have informed the Boards that there are a wide variety of lease transactions with different economics. To better reflect those differing economics, the revised Exposure Drafts propose a dual approach to the recognition, measurement, and presentation of expenses and cash flows arising from a lease. For most real estate leases, a lessee would report a straight-line lease expense in its income statement. For most other leases, such as equipment or vehicles, a lessee would report amortization of the asset separately from interest on the lease liability. The Boards are also proposing disclosures that should enable investors and other users of financial statements to understand the amount, timing, and uncertainty of cash flows arising from leases. | |
The leases project is a converged effort between the Boards. The revised Exposure Drafts for both organizations are nearly identical. The differences between the two proposals are primarily related to existing differences between U.S. GAAP and IFRS and decisions the FASB made related to nonpublic entities. | |
The Boards are also proposing changes to how equipment and vehicle lessors would account for leases that are off balance sheet. Those changes would provide greater transparency about such lessors’ exposure to credit risk and asset risk. | |
Comments were due by September 13, 2013. | |
Restriction_on_Cash
Restriction on Cash | 12 Months Ended |
Dec. 31, 2014 | |
Restriction on Cash [Abstract] | |
Restriction on Cash | Note 3: Restriction on Cash |
The Bank is required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank of Chicago. The reserve required at December 31, 2014 was $1,911,000. | |
Investment_Securities
Investment Securities | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Investment Securities [Abstract] | ||||||||||||||||||
Investment Securities | ||||||||||||||||||
Note 4: Investment Securities | ||||||||||||||||||
The amortized costs and approximate fair values, together with gross unrealized gains and losses on securities, are as follows: | ||||||||||||||||||
2014 | ||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||
Available for Sale Securities | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Government-sponsored agencies | $ | 110,452 | $ | 2,927 | $ | -89 | $ | 113,290 | ||||||||||
Collateralized mortgage obligations | ||||||||||||||||||
Government-sponsored agencies | 97,325 | 1,270 | -836 | 97,759 | ||||||||||||||
Federal agencies | 4 | - | - | 4 | ||||||||||||||
Municipal obligations | 27,246 | 2,013 | -7 | 29,252 | ||||||||||||||
Corporate obligations | 21,763 | 44 | -1,306 | 20,501 | ||||||||||||||
Total investment securities | $ | 256,790 | $ | 6,254 | $ | -2,238 | $ | 260,806 | ||||||||||
2013 | ||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||
Available for Sale Securities | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Government-sponsored agencies | $ | 104,006 | $ | 1,700 | $ | -2,189 | $ | 103,517 | ||||||||||
Collateralized mortgage obligations | ||||||||||||||||||
Government-sponsored agencies | 108,305 | 1,207 | -1,934 | 107,578 | ||||||||||||||
Federal agencies | 5,005 | - | -231 | 4,774 | ||||||||||||||
Municipal obligations | 27,357 | 257 | -276 | 27,338 | ||||||||||||||
Corporate obligations | 24,648 | 18 | -3,525 | 21,141 | ||||||||||||||
Total investment securities | $ | 269,321 | $ | 3,182 | $ | -8,155 | $ | 264,348 | ||||||||||
All mortgage-backed securities and collateralized-mortgage obligations held by the Company as of December 31, 2014 were in government-sponsored and federal agency securities. | ||||||||||||||||||
Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2014 and 2013 was $67.5 million and $147.8 million, which is approximately 25.9 percent and 55.9 percent of the Company’s investment portfolio at those dates. | ||||||||||||||||||
Based on our evaluation of available evidence, including recent changes in market interest rates, management believes the declines in fair value for these securities are temporary. | ||||||||||||||||||
Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. | ||||||||||||||||||
The following tables show the gross unrealized losses and fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2014 and 2013: | ||||||||||||||||||
2014 | ||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
Available for Sale | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Government-sponsored agencies | $ | 1,069 | $ | -9 | $ | 19,580 | $ | -80 | $ | 20,649 | $ | -89 | ||||||
Collateralized mortgage obligations | ||||||||||||||||||
Government-sponsored agencies | 5,075 | -40 | 34,159 | -796 | 39,234 | -836 | ||||||||||||
Municipal obligations | - | - | 631 | -7 | 631 | -7 | ||||||||||||
Corporate obligations | - | - | 6,995 | -1,306 | 6,995 | -1,306 | ||||||||||||
Total temporarily impaired securities | $ | 6,144 | $ | -49 | $ | 61,365 | $ | -2,189 | $ | 67,509 | $ | -2,238 | ||||||
2013 | ||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
Available for Sale | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Government-sponsored agencies | $ | 67,130 | $ | -2,189 | $ | - | $ | - | $ | 67,130 | $ | -2,189 | ||||||
Collateralized mortgage obligations | ||||||||||||||||||
Government-sponsored agencies | 51,753 | -1,934 | - | - | 51,753 | -1,934 | ||||||||||||
Federal agencies | 4,769 | -231 | 4,769 | -231 | ||||||||||||||
Municipal obligations | 11,264 | -245 | 741 | -31 | 12,005 | -276 | ||||||||||||
Corporate obligations | 8,849 | -151 | 3,336 | -3,374 | 12,185 | -3,525 | ||||||||||||
Total temporarily impaired securities | $ | 143,765 | $ | -4,750 | $ | 4,077 | $ | -3,405 | $ | 147,842 | $ | -8,155 | ||||||
Collateralized Mortgage Obligations (CMO) and Mortgage-Backed Securities (MBS) | ||||||||||||||||||
The unrealized losses on the Company’s investment in CMOs and MBSs were caused by interest rate changes. The Company expects to recover the amortized cost basis over the term of the securities. Because (1) the decline in market value is attributable to changes in interest rates and not credit quality, (2) the Company does not intend to sell the investments and (3) it is more likely than not the Company will not be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2014. | ||||||||||||||||||
Municipals | ||||||||||||||||||
The unrealized losses on the Company’s investments in securities of state and political subdivisions were caused by changes in interest rates. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell the investment before recovery of its new, lower amortized cost basis, which may be maturity. The Corporation does not consider the investment securities to be other-than-temporarily impaired at December 31, 2014. | ||||||||||||||||||
Corporate Obligations | ||||||||||||||||||
The Company’s unrealized loss on investments in corporate obligations primarily relates to investments in pooled trust preferred securities. The unrealized losses were primarily caused by (1) a decrease in performance and regulatory capital resulting from exposure to subprime mortgages and (2) a sector downgrade by several industry analysts. The Company currently expects some of the securities to settle at a price less than the amortized cost basis of the investment (that is, the Company expects to recover less than the entire amortized cost basis of the security). The Company has recognized a loss equal to the credit loss for these securities, establishing a new, lower amortized cost basis. The credit loss was calculated by comparing expected discounted cash flows based on performance indicators of the underlying assets in the security to the carrying value of the investment. Because the Company does not intend to sell these investments and it is likely that the Company will not be required to sell the investments before recovery of its new, lower amortized cost basis, which may be at maturity, it does not consider the remainder of the investments to be other-than-temporarily impaired at December 31, 2014. | ||||||||||||||||||
Other-Than-Temporary Impairment | ||||||||||||||||||
Upon acquisition of a security, the Company decides whether it is within the scope of the accounting guidance for beneficial interests in securitized financial assets or whether it will be evaluated for impairment under the accounting guidance for investments in debt and equity securities. | ||||||||||||||||||
The accounting guidance for beneficial interests in securitized financial assets provides incremental impairment guidance for a subset of the debt securities within the scope of the guidance for investments in debt and equity securities. For securities that are a beneficial interest in securitized financial assets, the Company uses the beneficial interests in securitized financial asset impairment model. For securities where the security is not a beneficial interest in securitized financial assets, the Company uses debt and equity securities impairment model. | ||||||||||||||||||
The Company conducts periodic reviews to identify and evaluate each investment security to determine whether an other-than-temporary impairment has occurred. Economic models are used to determine whether an other-than-temporary impairment has occurred on these securities. While all securities are considered, the securities primarily impacted by other-than-temporary impairment testing are private-label mortgage-backed securities and trust preferred securities. | ||||||||||||||||||
The Bank’s trust preferred securities valuation was prepared by an independent third party. Their approach to determining fair value involved several steps including: | ||||||||||||||||||
· | Detailed credit and structural evaluation of each piece of collateral in the trust preferred securities; | |||||||||||||||||
· | Collateral performance projections for each piece of collateral in the trust preferred security; | |||||||||||||||||
· | Terms of the trust preferred structure, as laid out in the indenture; and | |||||||||||||||||
· | Discounted cash flow modeling. | |||||||||||||||||
MutualFirst Financial uses market-based yield indicators as a baseline for determining appropriate discount rates, and then adjusts the resulting discount rates on the basis of its credit and structural analysis of specific trust preferred securities. The primary focus is on the returns a fixed income investor would require in order to allocate capital on a risk adjusted basis. There is currently no active market for pooled trust preferred securities; however, the Company looks principally to market yields for stand-alone trust preferred securities issued by banks, thrifts and insurance companies for which there is an active and liquid market. The next step is to make a series of adjustments to reflect the differences that exist between these products (both credit and structural) and, most importantly, to reflect idiosyncratic credit performance differences (both actual and projected) between these products and the underlying collateral in the specific trust preferred security. Importantly, as part of the analysis described above, MutualFirst considers the fact that structured instruments frequently exhibit leverage not present in stand-alone instruments, and make adjustments as necessary to reflect this additional risk. | ||||||||||||||||||
The default and recovery probabilities for each piece of collateral were formed based on the evaluation of the collateral credit and a review of historical industry default data and current/near-term operating conditions. For collateral that has already defaulted, the Company assumed no recovery. For collateral that was in deferral, the Company assumed a recovery of 10% of par for banks, thrifts or other depository institutions and 15% of par for insurance companies. Although the Company conservatively assumed that the majority of the deferring collateral continues to defer and eventually defaults, we also recognize there is a possibility that some deferring collateral may become current at some point in the future. | ||||||||||||||||||
Credit Losses Recognized on Investments | ||||||||||||||||||
Certain debt securities have experienced fair value deterioration due to credit losses, as well as due to other market factors, but are not otherwise other-than-temporarily impaired. | ||||||||||||||||||
The following table provides information about debt securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income. | ||||||||||||||||||
Accumulated Credit Losses | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Credit losses on debt securities held | ||||||||||||||||||
Beginning of period | $ | 1,205 | $ | 1,205 | $ | 3,567 | ||||||||||||
Reductions related to actual losses incurred | - | - | -2,362 | |||||||||||||||
Reductions for previous credit losses realized on securities sold during the year | -1,096 | - | - | |||||||||||||||
As of December 31, | $ | 109 | $ | 1,205 | $ | 1,205 | ||||||||||||
The amortized cost and fair value of securities available for sale at December 31, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||
Available for Sale | ||||||||||||||||||
Description Securities | Amortized Cost | Fair Value | ||||||||||||||||
Security obligations due | ||||||||||||||||||
One to five years | $ | 9,604 | $ | 9,625 | ||||||||||||||
Five to ten years | 10,777 | 10,891 | ||||||||||||||||
After ten years | 28,632 | 29,241 | ||||||||||||||||
49,013 | 49,757 | |||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Government-sponsored agencies | 110,452 | 113,290 | ||||||||||||||||
Collateralized mortgage obligations | ||||||||||||||||||
Government-sponsored agencies | 97,325 | 97,759 | ||||||||||||||||
Totals | $ | 256,790 | $ | 260,806 | ||||||||||||||
The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $0 and $2,140,000 at December 31, 2014 and 2013. | ||||||||||||||||||
Proceeds from sales of securities available for sale during 2014, 2013 and 2012 were $28,317,000, $53,179,000 and $98,326,000, respectively. Gross gains of $1,176,000, $898,000 and $2,831,000 in 2014, 2013 and 2012 were recognized on those sales. Gross losses of $863,000, $63,000 and $0 in 2014, 2013 and 2012 were recognized on those sales. | ||||||||||||||||||
Loans_and_Allowance
Loans and Allowance | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Loans and Allowance [Abstract] | |||||||||||||||||||||
Loans and Allowance | Note 5: Loans and Allowance | ||||||||||||||||||||
Classes of loans at December 31, 2014 and 2013 include: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 198,019 | $ | 200,817 | |||||||||||||||||
Commercial construction and development | 33,102 | 13,321 | |||||||||||||||||||
Consumer closed end first mortgage | 517,063 | 531,272 | |||||||||||||||||||
Consumer open end and junior liens | 71,073 | 69,354 | |||||||||||||||||||
819,257 | 814,764 | ||||||||||||||||||||
Other loans | |||||||||||||||||||||
Consumer loans | |||||||||||||||||||||
Auto | 14,712 | 14,856 | |||||||||||||||||||
Boat/RVs | 94,761 | 79,419 | |||||||||||||||||||
Other | 5,184 | 5,766 | |||||||||||||||||||
Commercial and industrial | 88,474 | 75,402 | |||||||||||||||||||
203,131 | 175,443 | ||||||||||||||||||||
Total loans | 1,022,388 | 990,207 | |||||||||||||||||||
Undisbursed loans in process | -9,285 | -13,346 | |||||||||||||||||||
Unamortized deferred loan costs, net | 3,583 | 2,517 | |||||||||||||||||||
Allowance for loan losses | -13,168 | -13,412 | |||||||||||||||||||
Net loans | $ | 1,003,518 | $ | 965,966 | |||||||||||||||||
Year-end non-accrual loans, segregated by class of loans, were as follows: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 2,023 | $ | 1,349 | |||||||||||||||||
Commercial construction and development | 209 | 1,103 | |||||||||||||||||||
Consumer closed end first mortgage | 3,499 | 4,057 | |||||||||||||||||||
Consumer open end and junior liens | 658 | 421 | |||||||||||||||||||
Consumer loans | |||||||||||||||||||||
Auto | - | 10 | |||||||||||||||||||
Boat/RVs | 191 | 339 | |||||||||||||||||||
Other | 27 | 12 | |||||||||||||||||||
Commercial and industrial | 605 | 1,109 | |||||||||||||||||||
$ | 7,212 | $ | 8,400 | ||||||||||||||||||
Nonaccrual Loan and Past Due Loans | |||||||||||||||||||||
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in managements’ opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions, but never later than 90 days past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |||||||||||||||||||||
All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured and generally only after six months of satisfactory performance. | |||||||||||||||||||||
An age analysis of the Company’s past due loans, segregated by class of loans, as of December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Total Loans Receivable | Total Loans 90 Days or More and Accruing | |||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 1,308 | $ | 848 | $ | 325 | $ | 2,481 | $ | 195,538 | $ | 198,019 | $ | - | |||||||
Commercial construction and development | - | - | 209 | 209 | 32,893 | 33,102 | - | ||||||||||||||
Consumer closed end first mortgage | 8,144 | 1,220 | 2,160 | 11,524 | 505,539 | 517,063 | 226 | ||||||||||||||
Consumer open end and junior liens | 969 | 130 | 27 | 1,126 | 69,947 | 71,073 | - | ||||||||||||||
Consumer loans | |||||||||||||||||||||
Auto | 65 | - | - | 65 | 14,647 | 14,712 | - | ||||||||||||||
Boat/RVs | 775 | 158 | 115 | 1,048 | 93,713 | 94,761 | - | ||||||||||||||
Other | 92 | 27 | 14 | 133 | 5,051 | 5,184 | - | ||||||||||||||
Commercial and industrial | 1,066 | 176 | 441 | 1,683 | 86,791 | 88,474 | - | ||||||||||||||
$ | 12,419 | $ | 2,559 | $ | 3,291 | $ | 18,269 | $ | 1,004,119 | $ | 1,022,388 | $ | 226 | ||||||||
31-Dec-13 | |||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Total Loans Receivable | Total Loans 90 Days or More and Accruing | |||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 763 | $ | 196 | $ | 1,196 | $ | 2,155 | $ | 198,662 | $ | 200,817 | $ | - | |||||||
Commercial construction and development | 333 | - | 915 | 1,248 | 12,073 | 13,321 | - | ||||||||||||||
Consumer closed end first mortgage | 11,680 | 2,122 | 3,515 | 17,317 | 513,955 | 531,272 | 175 | ||||||||||||||
Consumer open end and junior liens | 609 | 185 | 394 | 1,188 | 68,166 | 69,354 | - | ||||||||||||||
Consumer loans | |||||||||||||||||||||
Auto | 54 | 8 | 9 | 71 | 14,785 | 14,856 | - | ||||||||||||||
Boat/RVs | 1,410 | 262 | 202 | 1,874 | 77,545 | 79,419 | 13 | ||||||||||||||
Other | 61 | 3 | - | 64 | 5,702 | 5,766 | - | ||||||||||||||
Commercial and industrial | 67 | 393 | 531 | 991 | 74,411 | 75,402 | - | ||||||||||||||
$ | 14,977 | $ | 3,169 | $ | 6,762 | $ | 24,908 | $ | 965,299 | $ | 990,207 | $ | 188 | ||||||||
Impaired Loans | |||||||||||||||||||||
Loans are considered impaired in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. | |||||||||||||||||||||
Interest on impaired loans is recorded based on the performance of the loan. All interest received on impaired loans that are on nonaccrual is accounted for on the cash-basis method until qualifying for return to accrual. Interest is accrued per the contract for impaired loans that are performing. | |||||||||||||||||||||
The following tables present impaired loans for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | |||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 4,933 | $ | 4,933 | $ | - | $ | 3,776 | $ | 161 | |||||||||||
Commercial construction and development | 931 | 1,860 | - | 1,323 | 30 | ||||||||||||||||
Consumer closed end first mortgage | 1,138 | 1,138 | - | 1,142 | 8 | ||||||||||||||||
Consumer open end and junior liens | - | - | - | 100 | 3 | ||||||||||||||||
Commercial and industrial | 758 | 789 | - | 923 | 12 | ||||||||||||||||
Total | $ | 7,760 | $ | 8,720 | $ | - | $ | 7,264 | $ | 214 | |||||||||||
As of December 31, 2014, there were no impaired loans with a valuation allowance. | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | |||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 3,148 | $ | 3,660 | $ | - | $ | 3,894 | $ | 160 | |||||||||||
Commercial construction and development | 1,294 | 3,218 | - | 5,386 | 46 | ||||||||||||||||
Consumer closed end first mortgage | 1,483 | 2,071 | - | 2,582 | 33 | ||||||||||||||||
Commercial and industrial | 764 | 764 | - | 897 | 2 | ||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial construction and development | 344 | 371 | 100 | 344 | - | ||||||||||||||||
Commercial and industrial | 424 | 624 | 235 | 566 | 20 | ||||||||||||||||
Total | $ | 7,457 | $ | 10,708 | $ | 335 | $ | 13,669 | $ | 261 | |||||||||||
31-Dec-12 | |||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | |||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 5,341 | $ | 6,354 | $ | - | $ | 5,384 | $ | 248 | |||||||||||
Commercial construction and development | 3,632 | 7,078 | - | 4,884 | 30 | ||||||||||||||||
Consumer closed end first mortgage | 2,583 | 3,522 | - | 3,755 | 58 | ||||||||||||||||
Commercial and industrial | 972 | 972 | - | 2,828 | 117 | ||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | 208 | 947 | 100 | 211 | 12 | ||||||||||||||||
Commercial construction and development | 4,639 | 5,157 | 959 | 5,230 | 78 | ||||||||||||||||
Consumer closed end first mortgage | 834 | 834 | 57 | 654 | - | ||||||||||||||||
Commercial and industrial | 912 | 912 | 257 | 921 | 30 | ||||||||||||||||
Total | $ | 19,121 | $ | 25,776 | $ | 1,373 | $ | 23,867 | $ | 573 | |||||||||||
The following information presents the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of December 31, 2014. | |||||||||||||||||||||
Commercial Loan Grades | |||||||||||||||||||||
Definition of Loan Grades. Loan grades are numbered 1 through 8. Grades 1-4 are "pass" credits, grade 5 [Special Mention] loans are "criticized" assets, and grades 6 [Substandard], 7 [Doubtful] and 8 [Loss] are "classified" assets. The use and application of these grades by the Bank conform to the Bank's policy and regulatory definitions. | |||||||||||||||||||||
Pass. Pass credits are loans in grades prime through fair. These are at least considered to be credits with acceptable risks and would be granted in the normal course of lending operations. | |||||||||||||||||||||
Special Mention. Special mention credits have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credits or in the Bank’s credit position at some future date. If weaknesses cannot be identified, classifying as special mention is not appropriate. Special mention credits are not adversely classified and do not expose the Bank to sufficient risk to warrant an adverse classification. No apparent loss of principal or interest is expected. | |||||||||||||||||||||
Substandard. Substandard credits are inadequately protected by the current sound worth and paying capacity of the obligor or by the collateral pledged. Financial statements normally reveal some or all of the following: poor trends, lack of earnings and cash flow, excessive debt, lack of liquidity, and the absence of creditor protection. Credits so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss of the deficiencies are not corrected. | |||||||||||||||||||||
Doubtful. A doubtful extension of credit has all the weaknesses inherent in a substandard asset with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonably specific pending factors that may work to the advantage and strengthening of the asset, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. Doubtful classification for an entire credit should be avoided when collection of a specific portion appears highly probable with the adequately secured portion graded Substandard. | |||||||||||||||||||||
Retail Loan Grades | |||||||||||||||||||||
Pass. Pass credits are loans that are currently performing as agreed and are not troubled debt restructurings. | |||||||||||||||||||||
Special Mention. Special mention credits have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credits or in the Bank’s credit position at some future date. If weaknesses cannot be identified, classifying as special mention is not appropriate. Special mention credits are not adversely classified and do not expose the Bank to sufficient risk to warrant an adverse classification. No apparent loss of principal or interest is expected. | |||||||||||||||||||||
Substandard. Substandard credits are loans that have reason to be considered to have a weakness and placed on non-accrual. This would include all retail loans over 90 days and troubled debt restructurings. | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Commercial Credit Exposure Credit Risk Profile | |||||||||||||||||||||
Internal Rating | Real Estate | Construction and Development | Commercial and Industrial | ||||||||||||||||||
Pass | $ | 187,436 | $ | 30,422 | $ | 84,746 | |||||||||||||||
Special Mention | 3,316 | 1,721 | 439 | ||||||||||||||||||
Substandard | 7,267 | 959 | 2,848 | ||||||||||||||||||
Doubtful | - | - | 441 | ||||||||||||||||||
Total | $ | 198,019 | $ | 33,102 | $ | 88,474 | |||||||||||||||
Consumer Credit Exposure Credit Risk Profile | |||||||||||||||||||||
Internal Rating | Closed End First Mortgage | Real Estate Open End and Junior Liens | Auto | Boat/RV | Other | ||||||||||||||||
Pass | $ | 509,765 | $ | 70,299 | $ | 14,704 | $ | 94,377 | $ | 5,125 | |||||||||||
Special Mention | - | - | - | - | - | ||||||||||||||||
Substandard | 7,298 | 774 | 8 | 384 | 59 | ||||||||||||||||
Total | $ | 517,063 | $ | 71,073 | $ | 14,712 | $ | 94,761 | $ | 5,184 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Commercial Credit Exposure Credit Risk Profile | |||||||||||||||||||||
Internal Rating | Real Estate | Construction and Development | Commercial and Industrial | ||||||||||||||||||
Pass | $ | 190,041 | $ | 9,910 | $ | 73,648 | |||||||||||||||
Special Mention | 3,308 | 1,659 | 223 | ||||||||||||||||||
Substandard | 7,468 | 1,752 | 1,000 | ||||||||||||||||||
Doubtful | - | - | 531 | ||||||||||||||||||
Total | $ | 200,817 | $ | 13,321 | $ | 75,402 | |||||||||||||||
Consumer Credit Exposure Credit Risk Profile | |||||||||||||||||||||
Internal Rating | Closed End First Mortgage | Real Estate Open End and Junior Liens | Auto | Boat/RV | Other | ||||||||||||||||
Pass | $ | 522,352 | $ | 68,445 | $ | 14,834 | $ | 78,863 | $ | 5,415 | |||||||||||
Special Mention | 1,783 | - | - | - | - | ||||||||||||||||
Substandard | 7,137 | 909 | 22 | 556 | 351 | ||||||||||||||||
Total | $ | 531,272 | $ | 69,354 | $ | 14,856 | $ | 79,419 | $ | 5,766 | |||||||||||
Allowance for Loan Losses | |||||||||||||||||||||
The risk characteristics of each loan portfolio segment are as follows: | |||||||||||||||||||||
Commercial Loans | |||||||||||||||||||||
Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. As a general rule, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. | |||||||||||||||||||||
Commercial construction loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analyses of absorption and lease rates and financial analyses of the developers and property owners. Construction loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. | |||||||||||||||||||||
Commercial business loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. | |||||||||||||||||||||
Residential and Consumer | |||||||||||||||||||||
With respect to residential loans that are secured by one-to-four family residences and are primarily owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance (PMI) if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in one-to-four family residences, and consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. | |||||||||||||||||||||
The following tables detail activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2014, 2013 and 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses on other segments. | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Commercial | Mortgage | Consumer | Total | ||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||
Balance, beginning of year | $ | 8,148 | $ | 3,124 | $ | 2,140 | $ | 13,412 | |||||||||||||
Provision charged to expense | -1,273 | 888 | 1,235 | 850 | |||||||||||||||||
Losses charged off | -289 | -572 | -1,021 | -1,882 | |||||||||||||||||
Recoveries | 499 | 31 | 258 | 788 | |||||||||||||||||
Balance, end of period | $ | 7,085 | $ | 3,471 | $ | 2,612 | $ | 13,168 | |||||||||||||
Ending balance: | |||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Collectively evaluated for impairment | 7,085 | 3,471 | 2,612 | 13,168 | |||||||||||||||||
Total allowance for loan losses | $ | 7,085 | $ | 3,471 | $ | 2,612 | $ | 13,168 | |||||||||||||
Loans: | |||||||||||||||||||||
Ending balance | |||||||||||||||||||||
Individually evaluated for impairment | $ | 6,622 | $ | 1,138 | $ | - | $ | 7,760 | |||||||||||||
Collectively evaluated for impairment | 312,973 | 515,925 | 185,730 | 1,014,628 | |||||||||||||||||
Total Loans | $ | 319,595 | $ | 517,063 | $ | 185,730 | $ | 1,022,388 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||
Commercial | Mortgage | Consumer | Total | ||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||
Balance, beginning of year | $ | 9,908 | $ | 3,394 | $ | 2,736 | $ | 16,038 | |||||||||||||
Provision charged to expense | 884 | 343 | 73 | 1,300 | |||||||||||||||||
Losses charged off | -2,713 | -886 | -940 | -4,539 | |||||||||||||||||
Recoveries | 69 | 273 | 271 | 613 | |||||||||||||||||
Balance, end of period | $ | 8,148 | $ | 3,124 | $ | 2,140 | $ | 13,412 | |||||||||||||
Ending balance: | |||||||||||||||||||||
Individually evaluated for impairment | $ | 335 | $ | - | $ | - | $ | 335 | |||||||||||||
Collectively evaluated for impairment | 7,813 | 3,124 | 2,140 | 13,077 | |||||||||||||||||
Total allowance for loan losses | $ | 8,148 | $ | 3,124 | $ | 2,140 | $ | 13,412 | |||||||||||||
Loans: | |||||||||||||||||||||
Ending balance | |||||||||||||||||||||
Individually evaluated for impairment | $ | 5,974 | $ | 1,483 | $ | - | $ | 7,457 | |||||||||||||
Collectively evaluated for impairment | 283,566 | 529,789 | 169,395 | 982,750 | |||||||||||||||||
Total Loans | $ | 289,540 | $ | 531,272 | $ | 169,395 | $ | 990,207 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||
Commercial | Mortgage | Consumer | Total | ||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||
Balance, beginning of year | $ | 10,602 | $ | 3,444 | $ | 2,769 | $ | 16,815 | |||||||||||||
Provision charged to expense | 3,213 | 1,612 | 1,200 | 6,025 | |||||||||||||||||
Losses charged off | -4,493 | -1,901 | -1,608 | -8,002 | |||||||||||||||||
Recoveries | 586 | 239 | 375 | 1,200 | |||||||||||||||||
Balance, end of period | $ | 9,908 | $ | 3,394 | $ | 2,736 | $ | 16,038 | |||||||||||||
Ending balance: | |||||||||||||||||||||
Individually evaluated for impairment | $ | 1,316 | $ | 57 | $ | - | $ | 1,373 | |||||||||||||
Collectively evaluated for impairment | 8,592 | 3,337 | 2,736 | 14,665 | |||||||||||||||||
Total allowance for loan losses | $ | 9,908 | $ | 3,394 | $ | 2,736 | $ | 16,038 | |||||||||||||
Loans: | |||||||||||||||||||||
Ending balance | |||||||||||||||||||||
Individually evaluated for impairment | $ | 15,704 | $ | 3,417 | $ | - | $ | 19,121 | |||||||||||||
Collectively evaluated for impairment | 273,144 | 499,202 | 199,102 | 971,448 | |||||||||||||||||
Total Loans | $ | 288,848 | $ | 502,619 | $ | 199,102 | $ | 990,569 | |||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||
Certain categories of impaired loans include loans that have been modified in a troubled debt restructuring, that involves granting economic concessions to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Modifications of terms for our loans and their inclusion as troubled debt restructurings are based on individual facts and circumstances. | |||||||||||||||||||||
When we modify loans in a troubled debt restructuring, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, or we use the current fair value of the collateral, less selling costs for collateral dependent loans. If we determine that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through a specific reserve or a charge-off to the allowance. | |||||||||||||||||||||
Loans retain their accrual status at the time of their modification. As a result, if a loan is on nonaccrual at the time it is modified, it stays as nonaccrual until a period of satisfactory performance, generally six months, is obtained. If a loan is on accrual at the time of the modification, the loan is evaluated to determine the collection of principal and interest is reasonably assured and generally stays on accrual. | |||||||||||||||||||||
At December 31, 2014 and 2013, the Company had a number of loans that were modified in troubled debt restructurings and impaired. The modification of terms of such loans included one or a combination of the following: an extension of maturity, a reduction of the stated interest rate or a permanent reduction of the recorded investment in the loan. | |||||||||||||||||||||
The following tables describe troubled debts restructured during the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
No. of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | |||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | 6 | $ | 1,229 | $ | 1,248 | ||||||||||||||||
Consumer closed end first mortgage | 12 | 1,493 | 1,139 | ||||||||||||||||||
Consumer open end and junior liens | 5 | 58 | 59 | ||||||||||||||||||
Commercial and industrial | 2 | 193 | 223 | ||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
No. of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | |||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | 3 | $ | 1,532 | $ | 1,601 | ||||||||||||||||
Consumer closed end first mortgage | 24 | 1,706 | 1,884 | ||||||||||||||||||
Consumer open end and junior liens | 30 | 1,236 | 1,249 | ||||||||||||||||||
Consumer loans | |||||||||||||||||||||
Auto | 2 | 22 | 22 | ||||||||||||||||||
Boat/RVs | 6 | 172 | 171 | ||||||||||||||||||
Other | 1 | 11 | 11 | ||||||||||||||||||
Commercial and industrial | 3 | 1,122 | 843 | ||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
No. of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | |||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | 10 | $ | 2,239 | $ | 2,399 | ||||||||||||||||
Commercial construction and development | 3 | 1,047 | 1,133 | ||||||||||||||||||
Consumer closed end first mortgage | 57 | 3,857 | 4,098 | ||||||||||||||||||
Consumer open end and junior liens | 14 | 592 | 590 | ||||||||||||||||||
Consumer loans | |||||||||||||||||||||
Auto | 4 | 34 | 33 | ||||||||||||||||||
Boat/RVs | 7 | 154 | 153 | ||||||||||||||||||
Other | 4 | 53 | 52 | ||||||||||||||||||
Commercial and industrial | 6 | 325 | 386 | ||||||||||||||||||
The impact on the allowance for loan losses was insignificant as a result of these modifications. | |||||||||||||||||||||
Newly restructured loans by type for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Interest Only | Term | Combination | Total Modification | ||||||||||||||||||
Real Estate | |||||||||||||||||||||
Commercial | $ | - | $ | 701 | $ | 547 | $ | 1,248 | |||||||||||||
Consumer closed end first mortgage | 101 | - | 1,038 | 1,139 | |||||||||||||||||
Consumer open end junior lien | - | 28 | 31 | 59 | |||||||||||||||||
Commercial and industrial | - | 223 | - | 223 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Interest Only | Term | Combination | Total Modification | ||||||||||||||||||
Real Estate | |||||||||||||||||||||
Commercial | $ | - | $ | - | $ | 1,601 | $ | 1,601 | |||||||||||||
Consumer closed end first mortgage | - | 36 | 1,848 | 1,884 | |||||||||||||||||
Consumer open end junior lien | 250 | 402 | 597 | 1,249 | |||||||||||||||||
Consumer Loans | |||||||||||||||||||||
Auto | - | 4 | 18 | 22 | |||||||||||||||||
Boat/RVs | - | 135 | 36 | 171 | |||||||||||||||||
Other | - | - | 11 | 11 | |||||||||||||||||
Commercial and industrial | - | 209 | 634 | 843 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Interest Only | Term | Combination | Total Modification | ||||||||||||||||||
Real Estate | |||||||||||||||||||||
Commercial | $ | - | $ | 1,281 | $ | 1,118 | $ | 2,399 | |||||||||||||
Commercial construction and development | - | 961 | 172 | 1,133 | |||||||||||||||||
Consumer closed end first mortgage | 320 | 189 | 3,589 | 4,098 | |||||||||||||||||
Consumer open end junior lien | - | 97 | 493 | 590 | |||||||||||||||||
Consumer Loans | |||||||||||||||||||||
Auto | - | 29 | 4 | 33 | |||||||||||||||||
Boat/RVs | - | 153 | - | 153 | |||||||||||||||||
Other | - | 8 | 44 | 52 | |||||||||||||||||
Commercial and industrial | - | 143 | 243 | 386 | |||||||||||||||||
Defaults of any loans modified as troubled debt restructurings made in the years ended December 31, 2014, 2013 and 2012, respectively, are listed in the table below. Defaults are defined as any loans that become 90 days past due. We have included one other commercial loan in the default category due to a large subsequent charge-off after modification. | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
No. of Loans | Post-Modification Outstanding Recorded Balance | ||||||||||||||||||||
Real Estate | |||||||||||||||||||||
Consumer closed end first mortgage | 4 | $ | 663 | ||||||||||||||||||
Consumer open end and junior liens | 1 | 23 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
No. of Loans | Post-Modification Outstanding Recorded Balance | ||||||||||||||||||||
Real Estate | |||||||||||||||||||||
Consumer closed end first mortgage | 3 | $ | 210 | ||||||||||||||||||
Commercial and industrial | 1 | 634 | |||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
No. of Loans | Post-Modification Outstanding Recorded Balance | ||||||||||||||||||||
Real Estate | |||||||||||||||||||||
Commercial | 1 | $ | 109 | ||||||||||||||||||
Consumer closed end first mortgage | 2 | 61 | |||||||||||||||||||
Consumer Loans | |||||||||||||||||||||
Other | 1 | 14 | |||||||||||||||||||
Commercial and industrial | 1 | 518 | |||||||||||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||
Dec. 31, 2014 | |||
Related Party Transactions [Abstract] | |||
Related Party Transactions | Note 6: Related Party Transactions | ||
The Bank has entered into transactions with certain directors, executive officers and significant shareholders of the Company and Bank and their affiliates or associates (related parties). Such transactions were made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the time for comparable transactions with other customers, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features. | |||
The aggregate amount of loans, as defined, to such related parties was as follows: | |||
2014 | |||
Balances, January 1, | $ | 6,784 | |
Change in composition | 1,345 | ||
New loans, including renewals | 4,349 | ||
Payments, etc., including renewals | -4,511 | ||
Balances, December 31, | $ | 7,967 | |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Premises and Equipment [Abstract] | ||||||
Premises and Equipment | ||||||
Note 7: Premises and Equipment | ||||||
Major classifications of premises and equipment, stated at cost, are as follows: | ||||||
2014 | 2013 | |||||
Cost | ||||||
Land | $ | 13,100 | $ | 12,842 | ||
Buildings and land improvements | 25,334 | 26,005 | ||||
Equipment | 12,555 | 13,548 | ||||
Total cost | 50,989 | 52,395 | ||||
Accumulated depreciation and amortization | -20,050 | -20,924 | ||||
Net | $ | 30,939 | $ | 31,471 | ||
Investment_in_Limited_Partners
Investment in Limited Partnerships | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Investment in Limited Partnerships [Abstract] | |||||||||
Investment in Limited Partnerships | Note 8: Investment In Limited Partnerships | ||||||||
The investments in limited partnerships are as follows: | |||||||||
2014 | 2013 | ||||||||
Pedcor Investments 1997-XXVIII (99.00 percent ownership) | $ | 566 | $ | 849 | |||||
Pedcor Investments 1987-XXXI (49.5 percent ownership) | - | 63 | |||||||
Pedcor Investments 2000-XLI (50.0 percent ownership) | 330 | 412 | |||||||
Pedcor Investments 2001-LI (9.90 percent ownership) | 85 | 107 | |||||||
Pedcor Investments 2008-CIII (21.50 percent ownership) | 601 | 661 | |||||||
$ | 1,582 | $ | 2,092 | ||||||
These limited partnerships build, own and operate apartment complexes. The Company records its equity in the net income or loss of the limited partnerships based on the Company’s interest in the partnerships. The Company recorded losses from these limited partnerships of $385,000, $453,000 and $498,000 for 2014, 2013 and 2012, respectively. In addition, the Company has recorded the benefit of low income housing tax credits of $107,000, $159,000 and $283,000 for 2014, 2013 and 2012, respectively. Combined financial statements for the limited partnerships recorded under the equity method of accounting are as follows: | |||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash | $ | 394 | $ | 474 | |||||
Land and property | 47,124 | 48,722 | |||||||
Other assets | 2,737 | 2,258 | |||||||
Total assets | $ | 50,255 | $ | 51,454 | |||||
Liabilities | |||||||||
Notes payable | $ | 42,488 | $ | 42,376 | |||||
Other liabilities | 1,359 | 1,375 | |||||||
Total liabilities | $ | 43,847 | $ | 43,751 | |||||
Partners' equity | |||||||||
General partners | $ | -3,671 | $ | -3,652 | |||||
Limited partners | 10,079 | 11,355 | |||||||
Total partners' equity | $ | 6,408 | $ | 7,703 | |||||
Total liabilities and partners' equity | $ | 50,255 | $ | 51,454 | |||||
2014 | 2013 | 2012 | |||||||
Combined condensed statements of operations | |||||||||
Total revenue | $ | 7,110 | $ | 6,786 | $ | 6,606 | |||
Total expenses | -7,655 | -7,472 | -6,905 | ||||||
Net loss | $ | -545 | $ | -686 | $ | -299 | |||
Core_Deposit_and_Other_Intangi
Core Deposit and Other Intangibles | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Core Deposit and Other Intangibles [Abstract] | ||||||
Core Deposit and Other Intangibles | ||||||
Note 9: Core Deposit and Other Intangibles | ||||||
The carrying basis of recognized intangible assets at December 31, 2014 and 2013, were: | ||||||
2014 | 2013 | |||||
Core deposits | $ | 840 | $ | 1,396 | ||
Other intangibles | 265 | 233 | ||||
$ | 1,105 | $ | 1,629 | |||
Amortization expense for the years ended December 31, 2014, 2013 and 2012, was $647,000, $782,000 and $962,000, respectively. Estimated amortization expense for each of the next five years is: | ||||||
2015 | $ | 499 | ||||
2016 | 345 | |||||
2017 | 189 | |||||
2018 | 58 | |||||
2019 | 14 | |||||
$ | 1,105 | |||||
Goodwill
Goodwill | 12 Months Ended | ||
Dec. 31, 2014 | |||
Goodwill [Abstract] | |||
Goodwill | Note 10: Goodwill | ||
The changes in the carrying amount of goodwill for the year ended December 31, 2014 was: | |||
2014 | |||
Balance as of January 1 | $ | - | |
Goodwill acquired during the year | 1,800 | ||
Balance as of December 31 | $ | 1,800 | |
On August 1, 2014, the Company acquired Summit Mortgage, Inc., a mortgage broker in Ft. Wayne, Indiana. The acquisition of Summit resulted in the acquisition of insignificant assets, generated goodwill of $1.8 million and no additional material intangible assets. This acquisition allows the Bank to enter a new market and look at more efficient methods of increasing non-interest income and is not expected to have a material impact on the operations of the Company. | |||
Deposits
Deposits | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Deposits [Abstract] | ||||||
Deposits | ||||||
Note 11: Deposits | ||||||
Deposits were comprised of the following at December 31, 2014 and 2013: | ||||||
2014 | 2013 | |||||
Noninterest-bearing demand | $ | 154,178 | $ | 144,195 | ||
Interest-bearing demand | 253,042 | 262,114 | ||||
Savings | 124,051 | 119,380 | ||||
Money market savings | 146,847 | 115,600 | ||||
Certificates and other time deposits of $100,000 or more | 164,543 | 182,003 | ||||
Other certificates | 236,659 | 289,792 | ||||
Total deposits | $ | 1,079,320 | $ | 1,113,084 | ||
Certificates, including other time deposits of $100,000 or more, maturing in years ending December 31 are as follows: | ||||||
2015 | $ | 184,267 | ||||
2016 | 77,221 | |||||
2017 | 55,981 | |||||
2018 | 35,000 | |||||
2019 | 35,060 | |||||
Thereafter | 13,673 | |||||
$ | 401,202 | |||||
Federal_Home_Loan_Bank_Advance
Federal Home Loan Bank Advances | 12 Months Ended | ||
Dec. 31, 2014 | |||
Federal Home Loan Bank Advances [Abstract] | |||
Federal Home Loan Bank Advances | Note 12: Federal Home Loan Bank Advances | ||
FHLB advances maturing in years ending December 31 are as follows: | |||
2015 | $ | 41,824 | |
2016 | 26 | ||
2017 | 39,028 | ||
2018 | 37,030 | ||
2019 | 38,533 | ||
Thereafter | 36,001 | ||
$ | 192,442 | ||
At December 31, 2014, the Company had pledged $430,878,000 in qualifying first mortgage loans as collateral for advances and outstanding letters of credit. Advances, at interest rates from 0.34% to 6.73% at December 31, 2014, were subject to restrictions or penalties in the event of prepayment. | |||
Other_Borrowings
Other Borrowings | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Other Borrowings [Abstract] | ||||||
Other Borrowings | ||||||
Note 13: Other Borrowings | ||||||
Other borrowings consisted of the following components as of December 31: | ||||||
2014 | 2013 | |||||
Note payable | $ | 6,071 | $ | 6,830 | ||
Subordinated debenture | 4,103 | 4,060 | ||||
Total | $ | 10,174 | $ | 10,890 | ||
The Company borrowed $7,589,000 from First Tennessee Bank, N.A. at a variable rate of LIBOR plus 2.80%, with principal and interest payments made quarterly. Company also has an interest rate swap that fixed the variable rate portion of this loan for the term of the note at 3.92%. The loan is collateralized by the Bank’s stock and matures in December 2017. | ||||||
The maturity of the First Tennessee note is as follows: | ||||||
Principal Payments Due in Years Ending December 31: | ||||||
2015 | $ | 759 | ||||
2016 | 759 | |||||
2017 | 4,553 | |||||
$ | 6,071 | |||||
The Company assumed $5,000,000 in debentures as the result of an acquisition of MFB Corp. in 2008. In 2005, MFB Corp. had formed MFBC Statutory Trust (MFBC), as a wholly owned business trust, to sell trust preferred securities. The proceeds from the sale of these trust preferred securities were used by the trust to purchase an equivalent amount of subordinated debentures from the acquired company. The junior subordinated debentures are the sole assets of MFBC and are fully and unconditionally guaranteed by the Company. The junior subordinated debentures and the trust preferred securities pay interest and dividends, respectively, on a quarterly basis. The securities bore a fixed rate of interest of 6.22% for the first five years, and the rate resets quarterly at the prevailing three-month LIBOR rate plus 170 basis points. In 2009, the Company entered into a forward interest rate swap that fixed the variable rate portion for five years at 5.15% expiring in September 2015. The effect of the interest rate swap is not material to the financial statements and has been determined to be 100% effective. Accordingly, the impact of the cash flow hedge is recorded, net of tax, in other comprehensive income. The Company may redeem the trust preferred securities, in whole or in part, without penalty, on or after September 15, 2010. These securities mature on September 15, 2035. The net balance of the note as of December 31, 2014 was $4,103,000 due to the fair value adjustment of the note made at the time of the acquisition. | ||||||
Loan_Servicing
Loan Servicing | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Text Block [Abstract] | |||||||||
Loan Servicing | |||||||||
Note 14: Loan Servicing | |||||||||
Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of these loans consist of the following: | |||||||||
2014 | 2013 | ||||||||
Loans serviced for | |||||||||
Freddie Mac | $ | 295,589 | $ | 303,313 | |||||
Fannie Mae | 16,024 | 20,881 | |||||||
FHLB | 12,963 | 10,958 | |||||||
Other investors | 1,670 | 1,811 | |||||||
$ | 326,246 | $ | 336,963 | ||||||
The aggregate fair value of capitalized mortgage servicing rights is based on comparable market values and expected cash flows, with impairment assessed based on portfolio characteristics including product type and interest rates. The amount of servicing fees collected during 2014, 2013 and 2012 totaled approximately $832,000, $896,000, and $986,000. | |||||||||
2014 | 2013 | 2012 | |||||||
Mortgage-servicing rights | |||||||||
Balances, January 1 | $ | 1,858 | $ | 2,396 | $ | 3,101 | |||
Servicing rights capitalized | 278 | 464 | 294 | ||||||
Amortization of servicing rights | -719 | -1,002 | -999 | ||||||
1,417 | 1,858 | 2,396 | |||||||
Valuation allowance | - | - | -665 | ||||||
$ | 1,417 | $ | 1,858 | $ | 1,731 | ||||
The fair value of servicing rights subsequently measured using the amortization method was as follows: | |||||||||
2014 | 2013 | 2012 | |||||||
Mortgage-servicing rights | |||||||||
Fair value, beginning of period | $ | 2,106 | $ | 1,731 | $ | 2,626 | |||
Fair value, end of period | 2,048 | 2,106 | 1,731 | ||||||
Activity in the valuation allowance for mortgage servicing rights was as follows: | |||||||||
2014 | 2013 | 2012 | |||||||
Balance, beginning of year | $ | - | $ | 665 | $ | 475 | |||
Additions | - | - | 190 | ||||||
Reductions | - | -665 | - | ||||||
Balance, end of year | $ | - | $ | - | $ | 665 | |||
Income_Tax
Income Tax | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax [Abstract] | ||||||||||
Income Tax | ||||||||||
Note 15: Income Tax | ||||||||||
The provision for income taxes includes these components: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Income tax expense | ||||||||||
Currently payable | ||||||||||
Federal | $ | 2,930 | $ | 2,272 | $ | 1,745 | ||||
State | -261 | -677 | 305 | |||||||
Deferred | ||||||||||
Federal | 433 | 1,372 | 887 | |||||||
State | 481 | 841 | -305 | |||||||
Total income tax expense | $ | 3,583 | $ | 3,808 | $ | 2,632 | ||||
A reconciliation of income tax expense at the federal statutory rate to actual tax expense is shown below: | ||||||||||
2014 | 2013 | 2012 | ||||||||
Federal statutory income tax at 34% | $ | 4,897 | $ | 4,423 | $ | 3,359 | ||||
Other than temporary impairment | -615 | - | - | |||||||
State taxes | 145 | 109 | - | |||||||
Low income housing credits | -107 | -159 | -283 | |||||||
Tax-exempt income | -818 | -725 | -587 | |||||||
Other | 81 | 160 | 143 | |||||||
Actual tax expense | $ | 3,583 | $ | 3,808 | $ | 2,632 | ||||
Effective tax rate | 24.88 | % | 29.28 | % | 26.64 | % | ||||
The components of the deferred asset included on the consolidated balance sheets were as follows: | ||||||||||
2014 | 2013 | |||||||||
Assets | ||||||||||
Unrealized loss on securities available for sale | $ | - | $ | 1,762 | ||||||
Allowance for loan losses | 5,344 | 5,439 | ||||||||
Deferred compensation | 3,191 | 2,970 | ||||||||
Business tax and AMT credit carryovers | 5,463 | 7,140 | ||||||||
Capital loss carryover | 144 | 548 | ||||||||
Net operating loss carryover | 2,148 | 2,684 | ||||||||
Goodwill impairment | 2,611 | 3,032 | ||||||||
Purchase accounting adjustments | 1,120 | 1,161 | ||||||||
Other | 1,306 | 920 | ||||||||
Total assets | 21,327 | 25,656 | ||||||||
Liabilities | ||||||||||
Unrealized gain on securities available for sale | $ | -1,375 | $ | - | ||||||
Depreciation and amortization | -532 | -833 | ||||||||
FHLB stock | -447 | -541 | ||||||||
State income tax | -757 | -1,011 | ||||||||
Loan fees | -245 | -770 | ||||||||
Investments in limited partnerships | -2,584 | -2,596 | ||||||||
Mortgage servicing rights | -501 | -732 | ||||||||
Other | -361 | -336 | ||||||||
Total liabilities | -6,802 | -6,819 | ||||||||
Valuation Allowance | ||||||||||
Beginning balance | -1,835 | -1,835 | ||||||||
Decrease during period | 615 | - | ||||||||
Ending balance | -1,220 | -1,835 | ||||||||
Net deferred tax asset | $ | 13,305 | $ | 17,002 | ||||||
The Company has unused business income tax credits of $4,112,000 that will begin to expire in 2027 and a state net operating loss of $28,635,000 that will begin to expire in 2022. In addition, the Company has an AMT credit carryover of $1,351,000 with an unlimited carryover period. Management believes that the Company will be able to utilize the benefits recorded for the state loss carryforwards and federal credits within the allotted time periods, except for the amount represented by the valuation allowance. The valuation allowance has been recorded for the possible inability to use a portion of the state net operating loss carryover as well as the inability to utilize the capital losses generated from realized losses and losses recognized related to other than temporary impairment. | ||||||||||
Retained earnings include approximately $14,743,000 for which no deferred income tax liability has been recognized. This amount represents an allocation of income to bad debt deductions as of December 31, 1987 for tax purposes only. Reduction of amounts so allocated for purposes other than tax bad debt losses or adjustments arising from carryback of net operating losses would create income for tax purposes only, which income would be subject to the then-current corporate income tax rate. The unrecorded deferred income tax liability on the above amounts was approximately $5,013,000. | ||||||||||
The Company’s federal and state income tax returns have been closed without audit by the IRS through the year ended December 31, 2010. | ||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Note 16: Accumulated Other Comprehensive Income | ||||||||||||
The components of accumulated other comprehensive income, included in stockholders’ equity, are as follows: | ||||||||||||
2014 | 2013 | |||||||||||
Net unrealized gain (loss) on securities available-for-sale | $ | 4,933 | $ | -2,029 | ||||||||
Net unrealized loss on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income | -917 | -2,945 | ||||||||||
Net unrealized loss on derivative used for cash flow hedges | -109 | -259 | ||||||||||
Net unrealized gain relating to defined benefit plan liability | -109 | 100 | ||||||||||
3,798 | -5,133 | |||||||||||
Tax expense (benefit) | 1,420 | -1,718 | ||||||||||
Net of tax amount | $ | 2,378 | $ | -3,415 | ||||||||
The following table presents the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Statement of Income for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income For the Year Ended December 31, | ||||||||||||
Details about Accumulated Other Comprehensive Income Components | 2014 | 2013 | 2012 | Affected Line Item in the Statements of Income | ||||||||
Unrealized gains (losses) on available-for-sale securities | ||||||||||||
Realized securities gains reclassified into income | $ | 313 | $ | 835 | $ | 2,831 | Net realized gains on sale of available-for-sale securities | |||||
Related income tax expense | -106 | -284 | -963 | Income tax expense | ||||||||
Total reclassifications for the period, net of tax | $ | 207 | $ | 551 | $ | 1,868 | ||||||
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Commitments and Contingent Liabilities [Abstract] | ||||||
Commitments and Contingent Liabilities | Note 17: Commitments and Contingent Liabilities | |||||
In the normal course of business, there are outstanding commitments and contingent liabilities, such as commitments to extend credit and standby letters of credit, which are not included in the accompanying financial statements. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making such commitments as it does for instruments that are included in the consolidated statements of financial condition. | ||||||
Financial instruments whose contract amount represents credit risk as of December 31: | ||||||
2014 | 2013 | |||||
Loan commitments | $ | 200,189 | $ | 185,702 | ||
Standby letters of credit | 2,288 | 2,909 | ||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation. Collateral held varies, but may include residential real estate, income-producing commercial properties, or other assets of the borrower. | ||||||
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. | ||||||
The Company and Bank are also subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position of the Company. | ||||||
The Company has entered into employment agreements with certain officers that provide for the continuation of salary and certain benefits for a specified period of time under certain conditions. Under the terms of the agreement, these payments could occur in the event of a change in control of the Company, as defined, along with other specific conditions within current US Treasury Capital Purchase Program restrictions. | ||||||
Mortgage loans in the process of origination represent amounts that the Company plans to fund within a normal period of 60 to 90 days, and which are primarily intended for sale to investors in the secondary market. Total mortgage loans in the process of origination amounted to $817,000 and $1,301,000, and mortgage loans held for sale amounted to $6,140,000 and $1,888,000, at December 31, 2014 and 2013, respectively. | ||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | Note 18: Stockholders’ Equity |
Without prior approval, current regulations allow the Bank to pay dividends to the Company not exceeding retained net income for the previous two calendar years and the current year. In the event the Bank becomes unable to pay dividends to the Company, the Company may not be able to service its debt, pay its other obligations or pay dividends on its common stock. At December 31, 2014, the Bank was not able to pay dividends without prior regulatory notification. | |
Preferred_Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2014 | |
Preferred Stock [Abstract] | |
Preferred Stock | Note 19: Preferred Stock |
As of December 31, 2013, the Company had repurchased all of the preferred stock issued to the Treasury under the Small Business Lending Fund (SBLF). | |
Regulatory_Capital
Regulatory Capital | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Regulatory Capital [Abstract] | ||||||||||||||||||
Regulatory Capital | Note 20: Regulatory Capital | |||||||||||||||||
The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. | ||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital to average assets (as defined). As of December 31, 2014 and 2013, the Company and Bank meet all capital adequacy requirements to which it is subject. | ||||||||||||||||||
The Company’s and Bank’s actual capital amounts and ratios are presented in the table below. | ||||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Actual Capital Levels | Minimum Regulatory Capital Levels | Minimum Required To be Considered Well-Capitalized | ||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||
Leverage Capital Level(1): | ||||||||||||||||||
MutualFirst Consolidated | $ | 120,568 | 8.5 | % | $ | 56,687 | 4.0 | % | $ | N/A | N/A | % | ||||||
MutualBank | 124,083 | 8.8 | 56,610 | 4.0 | 70,763 | 5.0 | ||||||||||||
Tier 1 Risk-Based Capital Level (2) : | ||||||||||||||||||
MutualFirst Consolidated | $ | 120,568 | 12.3 | % | $ | 39,269 | 4.0 | % | $ | 58,903 | 6.0 | % | ||||||
MutualBank | 124,083 | 12.6 | 39,257 | 4.0 | 58,886 | 6.0 | ||||||||||||
Total Risk-Based Capital Level (3) : | ||||||||||||||||||
MutualFirst Consolidated | $ | 132,847 | 13.5 | % | $ | 78,537 | 8.0 | % | $ | 98,171 | 10.0 | % | ||||||
MutualBank | 136,362 | 13.9 | 78,515 | 8.0 | 98,143 | 10.0 | ||||||||||||
(1) Tier 1 Capital to Average Total Assets of $1.4 billion for the Bank and $1.4 billion for the Company at December 31, 2014. | ||||||||||||||||||
(2) Tier 1 Capital to Risk-Weighted Assets of $981.4 million for the Bank and $981.7 million for the Company at December 31, 2014. | ||||||||||||||||||
(3) Total Capital to Risk-Weighted Assets. | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Actual Capital Levels | Minimum Regulatory Capital Levels | Minimum Required To be Considered Well-Capitalized | ||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||
Leverage Capital Level(1): | ||||||||||||||||||
MutualFirst Consolidated | $ | 109,771 | 7.9 | % | $ | 55,652 | 4.0 | % | $ | N/A | N/A | % | ||||||
MutualBank | 115,174 | 8.3 | 55,621 | 4.0 | 69,526 | 5.0 | ||||||||||||
Tier 1 Risk-Based Capital Level (2) : | ||||||||||||||||||
MutualFirst Consolidated | $ | 109,771 | 11.3 | % | $ | 38,754 | 4.0 | % | $ | 58,131 | 6.0 | % | ||||||
MutualBank | 115,174 | 11.9 | 38,733 | 4.0 | 58,099 | 6.0 | ||||||||||||
Total Risk-Based Capital Level (3) : | ||||||||||||||||||
MutualFirst Consolidated | $ | 121,891 | 12.6 | % | $ | 77,507 | 8.0 | % | $ | 96,884 | 10.0 | % | ||||||
MutualBank | 127,294 | 13.2 | 77,466 | 8.0 | 96,832 | 10.0 | ||||||||||||
(1) Tier 1 Capital to Average Total Assets of $1.4 billion for the Bank and $1.4 billion for the Company at December 31, 2013. | ||||||||||||||||||
(2) Tier 1 Capital to Risk-Weighted Assets of $968.3 million for the Bank and $968.8 million for the Company at December 31, 2013. | ||||||||||||||||||
(3) Total Capital to Risk-Weighted Assets. | ||||||||||||||||||
Employee_Benefits
Employee Benefits | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Employee Benefits [Abstract] | |||||||||
Employee Benefits | Note 21: Employee Benefits | ||||||||
The Company has a retirement savings 401(k) plan in which substantially all employees may participate. The contributions are discretionary and determined annually. The Company matches employees' contributions at the following rates: 100 percent of participant contributions up to 4% and 50 percent of participant contributions from 5-6%, not to exceed a maximum of 5% of their compensation. The match amounts were increased in 2014 from the prior rates: 100 percent of participant contributions up to 3% and 50 percent of participant contributions from 4-5%, not to exceed a maximum of 4% of their compensation. The Company’s expense for the plan was $739,000, $552,000 and $537,000 for 2014, 2013 and 2012, respectively. | |||||||||
The Company has a supplemental retirement plan and deferred compensation arrangements for the benefit of certain officers. The Company also has deferred compensation arrangements with certain directors whereby, in lieu of currently receiving fees, the directors or their beneficiaries will be paid benefits for an established period following the director’s retirement or death. These arrangements are informally funded by life insurance contracts which have been purchased by the Company. The Company records a liability for these vested benefits based on the present value of future payments. The Company’s expense for the plan was $730,000, $748,000 and $675,000 for 2014, 2013 and 2012, respectively. | |||||||||
The Company has an ESOP covering substantially all of its employees. During 2013 the ESOP reached maturity and the last of the shares were allocated in early 2014. At December 31, 2014 and 2013 the Company had no unearned ESOP shares. At December 31, 2012, the Company had 31,785 unearned ESOP shares with a fair value of $363,000. Shares were released to participants proportionately as ESOP debt was repaid. Dividends on allocated shares were recorded as dividends and charged to retained earnings. Dividends on unallocated shares were used to repay the loan. Compensation expense was recorded equal to the fair market value of the stock committed-to-be-released when contributions, which are determined annually by the Board of Directors of the Company and Bank, were made to the ESOP. Expense under the ESOP for 2014, 2013 and 2012 was $0, $474,000 and $328,000, respectively. The following table provides information on ESOP shares at December 31: | |||||||||
2014 | 2013 | 2012 | |||||||
Allocated shares | 426,877 | 414,896 | 397,176 | ||||||
Suspense shares | - | - | 31,785 | ||||||
Committed-to-be released shares | - | 31,785 | 31,783 | ||||||
Stock_Option_Plans
Stock Option Plans | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Stock Option Plans [Abstract] | |||||||||||
Stock Option Plans | Note 22: Stock Option Plans | ||||||||||
Under the Company’s stock option plans, which are accounted for in accordance with FASB ASC 718, Stock Compensation, the Company grants selected executives and other key employees and directors incentive and non-qualified stock option awards that vest and become fully exercisable at the discretion of the Compensation Committee as the options are granted. The Company is authorized to grant options for up to 934,702 shares of the Company’s common stock under two separate stock option plans. Under certain provisions of the plans, the number of shares available for grant may be increased without shareholder approval by the amount of shares surrendered as payment of the exercise price of the stock option and by the number of shares of common stock of the Company that could be repurchased by the Company using proceeds from the exercise of stock options. | |||||||||||
The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model that uses the assumptions noted in the following table. Expected volatility is based on historical volatility of the Company’s stock and other factors. The Company uses historical data to estimate timing of option exercises and employee terminations within the valuation model; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of options granted represents the period of time that options are expected to be outstanding; the range given below results from certain groups of employees exhibiting different behavior. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The discount rate for post-vesting restrictions is estimated based on the Company’s credit-adjusted risk-free rate of return. | |||||||||||
The following is a summary of the status of the Company’s stock option plans and changes in these plans during 2014. | |||||||||||
2014 | |||||||||||
Options | Shares | Weighted- Average Exercise Price | Weighted-Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||
Outstanding, beginning of year | 687,043 | $ | 10.70 | ||||||||
Exercised | -118,823 | 11.34 | |||||||||
Outstanding and exercisable, end of year | 568,220 | $ | 10.57 | 6.5 years | $ | 6,570 | |||||
There were 118,823, 61,677 and 67,916 options exercised during the years ended December 31, 2014, 2013 and 2012. There were no options granted during 2014 or 2013 and 58,000 shares granted in 2012. The weighted-average grant-date fair value of options granted during 2012 was $2.01. The Company will fulfill options with authorized but unissued shares of stock from the 934,702 shares the Company has authorized under the shareholder approved equity compensation plans. There were 101,642 shares remaining to be granted under the current plans. | |||||||||||
The incentive stock options were granted with the exercise price equal to market price on the day of the grant. The following assumptions were used to determine the fair value of options granted in 2012. | |||||||||||
2012 | |||||||||||
Risk-free interest rate | 1.70% | ||||||||||
Expected option life | 10.0 yrs | ||||||||||
Dividend yield | 3.45% | ||||||||||
Expected volatility of stock price | 31.50% | ||||||||||
Cash received from options exercised under all share-based payment arrangements for years ended December 31, 2014, 2013 and 2012 was $1.3 million, $538,000 and $551,000, respectively. The intrinsic value on options exercised during the years ended December 31, 2014, 2013 and 2012 was $1.0 million, $377,000 and $287,000, respectively. | |||||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | ||||||||
Note 23: Earnings Per Share | ||||||||
Earnings per share were computed as follows: | ||||||||
2014 | ||||||||
Income | Weighted- Average Shares | Per-Share Amount | ||||||
Basic Earnings Per Share | ||||||||
Income available to common stockholders | 10,818 | 7,160,700 | $ | 1.51 | ||||
Effect of Dilutive Securities | ||||||||
Stock options | - | 231,131 | ||||||
Diluted Earnings Per Share | ||||||||
Income available to common stockholders and assumed conversions | $ | 10,818 | 7,391,831 | $ | 1.46 | |||
2013 | ||||||||
Income | Weighted- Average Shares | Per-Share Amount | ||||||
Basic Earnings Per Share | ||||||||
Net income | $ | 9,200 | 7,076,877 | |||||
Dividends and accretion on preferred stock | -1,257 | |||||||
Income available to common stockholders | 7,943 | 7,076,877 | $ | 1.12 | ||||
Effect of Dilutive Securities | ||||||||
Stock options | - | 180,941 | ||||||
Diluted Earnings Per Share | ||||||||
Income available to common stockholders and assumed conversions | $ | 7,943 | 7,257,818 | $ | 1.09 | |||
2012 | ||||||||
Income | Weighted- Average Shares | Per-Share Amount | ||||||
Basic Earnings Per Share | ||||||||
Net income | $ | 7,246 | 6,951,727 | |||||
Dividends and accretion on preferred stock | -1,446 | |||||||
Income available to common stockholders | 5,800 | 6,951,727 | $ | 0.83 | ||||
Effect of Dilutive Securities | ||||||||
Stock options | - | 103,957 | ||||||
Diluted Earnings Per Share | ||||||||
Income available to common stockholders and assumed conversions | $ | 5,800 | 7,055,684 | $ | 0.82 | |||
Options to purchase 44,161, 75,831, and 246,815 shares of common stock were outstanding at December 31, 2014, 2013 and 2012, respectively, but were not included in the computation of diluted EPS because the options’ exercise price was greater than the average market price of the common shares. | ||||||||
Fair_Values_of_Financial_Instr
Fair Values of Financial Instruments | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Values of Financial Instruments [Abstract] | ||||||||||||||||
Fair Values of Financial Instruments | Note 24: Fair Values of Financial Instruments | |||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: | ||||||||||||||||
Level 1Quoted prices in active markets for identical assets or liabilities | ||||||||||||||||
Level 2Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities | ||||||||||||||||
Level 3Unobservable inputs supported by little or no market activity and are significant to the fair value of the assets or liabilities | ||||||||||||||||
Items Measured at Fair Value on a Recurring Basis | ||||||||||||||||
Following is a description of the valuation methodologies and inputs used for instruments measured at fair value on a recurring basis and recognized in the accompanying comparative balance sheet, as well as the general classification of such instruments pursuant to the valuation hierarchy. | ||||||||||||||||
Available-for-Sale Securities | ||||||||||||||||
Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. The Company uses a third-party provider to provide market prices on its securities. Prices are evaluated by a third party. Level 1 securities include marketable equity securities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 securities include mortgage-backed, collateralized mortgage obligations, municipal, federal agency and certain corporate obligation securities. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy and include certain corporate obligation securities. | ||||||||||||||||
Third party vendors compile prices from various sources and may apply such techniques as matrix pricing to determine the value of identical or similar investment securities (Level 2). Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities but rather relying on investment securities relationship to other benchmark quoted investment securities. Any investment security not valued based upon the methods above are considered Level 3. | ||||||||||||||||
The following table presents the fair value measurements of assets measured at fair value on a recurring basis and level within the ASC 820 fair value hierarchy in which the fair value measurements fall: | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Dec-14 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||
Government sponsored agencies | $ | 113,290 | $ | - | $ | 113,290 | $ | - | ||||||||
Collateralized mortgage obligations | ||||||||||||||||
Government sponsored agencies | 97,759 | - | 97,759 | - | ||||||||||||
Federal agencies | 4 | - | 4 | - | ||||||||||||
Municipal obligations | 29,252 | - | 29,252 | - | ||||||||||||
Corporate obligations | 20,501 | - | 17,979 | 2,522 | ||||||||||||
Available-for-sale securities | $ | 260,806 | $ | - | $ | 258,284 | $ | 2,522 | ||||||||
Fair Value Measurements Using | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Dec-13 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||
Government sponsored agencies | $ | 103,517 | $ | - | $ | 103,517 | $ | - | ||||||||
Collateralized mortgage obligations | ||||||||||||||||
Government sponsored agencies | 107,578 | - | 107,578 | - | ||||||||||||
Federal agencies | 4,774 | - | 4,774 | - | ||||||||||||
Municipal obligations | 27,338 | - | 27,338 | - | ||||||||||||
Corporate obligations | 21,141 | - | 17,805 | 3,336 | ||||||||||||
Available-for-sale securities | $ | 264,348 | $ | - | $ | 261,012 | $ | 3,336 | ||||||||
The following is a reconciliation of the beginning and ending balances for the years ended December 31, 2014, 2013 and 2012 of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable (Level 3) inputs: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | 3,336 | $ | 2,475 | $ | 2,454 | ||||||||||
Total realized and unrealized gains (losses) | ||||||||||||||||
Included in net income | -68 | - | - | |||||||||||||
Included in other comprehensive income (loss) | 2,098 | 897 | 30 | |||||||||||||
Sales | -2,826 | - | - | |||||||||||||
Settlements | -18 | -36 | -9 | |||||||||||||
Ending balance | $ | 2,522 | $ | 3,336 | $ | 2,475 | ||||||||||
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Items Measured at Fair Value on a Non-Recurring Basis | ||||||||||||||||
From time to time, certain assets may be recorded at fair value on a non-recurring basis. These non-recurring fair value adjustments typically are a result of the application of lower of cost or fair value accounting or a write-down occurring during the period. The following is a description of the valuation methodologies used for certain assets that are recorded at fair value. | ||||||||||||||||
Impaired Loans (Collateral Dependent) | ||||||||||||||||
Loans for which it is probable that the Bank will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral dependent loans. | ||||||||||||||||
If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. | ||||||||||||||||
Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. | ||||||||||||||||
Other Real Estate Owned | ||||||||||||||||
The fair value of real estate is generally determined based on appraisals by qualified licensed appraisers. The appraisers typically determine the value of the real estate by utilizing an income or market valuation approach. If an appraisal is not available, the fair value may be determined by using a cash flow analysis. | ||||||||||||||||
Other real estate owned is classified within Level 3 of the fair value hierarchy. | ||||||||||||||||
Mortgage-Servicing Rights | ||||||||||||||||
We initially measure our mortgage servicing rights at fair value, and amortize them over the period of estimated net servicing income. They are periodically assessed for impairment based on fair value at the reporting date. Mortgage-servicing rights do not trade in an active market with readily observable prices. Accordingly, the fair value is estimated based on a valuation model which calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, market discount rates, cost to service, float earnings rates and other ancillary income, including late fees. The fair value measurements are classified as Level 3. | ||||||||||||||||
The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fall: | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Dec-14 | ||||||||||||||||
Other real estate owned | $ | 1,280 | $ | - | $ | - | $ | 1,280 | ||||||||
Fair Value Measurements Using | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Dec-13 | ||||||||||||||||
Impaired loans | $ | 925 | $ | - | $ | - | $ | 925 | ||||||||
Other real estate owned | 1,677 | - | - | 1,677 | ||||||||||||
Mortgage-servicing rights | 2,106 | - | - | 2,106 | ||||||||||||
The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. | ||||||||||||||||
31-Dec-14 | Fair Value | Valuation Technique | Unobservable Inputs | Range | ||||||||||||
Trust Preferred Securities | $ | 2,522 | Discounted cash flow | Discount rate | 8.0 | % | ||||||||||
Constant prepayment rate | 2.0 | % | ||||||||||||||
Cumulative projected prepayments | 40.0 | % | ||||||||||||||
Probability of default | 1.7 - 1.8 | % | ||||||||||||||
Projected cures given deferral | 0 - 15.0 | % | ||||||||||||||
Loss severity | 34.2 - 39.8 | % | ||||||||||||||
Other real estate owned | $ | 1,280 | Third party valuations | Discount to reflect realizable value less estimated selling costs | 24.4 - 36.7 | % | ||||||||||
31-Dec-13 | Fair Value | Valuation Technique | Unobservable Inputs | Range | ||||||||||||
Trust Preferred Securities | $ | 3,336 | Discounted cash flow | Discount rate | 10.0 - 17.0 | % | ||||||||||
Constant prepayment rate | 2.0 | % | ||||||||||||||
Cumulative projected prepayments | 40.0 | % | ||||||||||||||
Probability of default | 1.5 - 2.7 | % | ||||||||||||||
Projected cures given deferral | 0 - 15.0 | % | ||||||||||||||
Loss severity | 46.9 - 73.7 | % | ||||||||||||||
Impaired loans (collateral dependent) | $ | 925 | Third party valuations | Discount to reflect realizable value | 7.3 - 78.3 | % | ||||||||||
Other real estate owned | $ | 1,677 | Third party valuations | Discount to reflect realizable value less estimated selling costs | 0 - 25.0 | % | ||||||||||
Mortgage-servicing rights | $ | 2,106 | Third party valuations | Prepayment speeds | 105 - 700 | % | ||||||||||
Discount rates | 10.0 | % | ||||||||||||||
Servicing fee | 0.25 | % | ||||||||||||||
The following methods and assumptions were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheets at amounts other than fair value: | ||||||||||||||||
Cash and Cash Equivalents - The fair value of cash and cash-equivalents approximates carrying value. | ||||||||||||||||
Loans Held For Sale - Fair values are based on quoted market prices. | ||||||||||||||||
Loans - The fair value for loans is estimated using discounted cash flow analyses using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. | ||||||||||||||||
FHLB Stock - Fair value of FHLB stock is based on the price at which it may be resold to the FHLB. | ||||||||||||||||
Interest Receivable/Payable - The fair values of interest receivable/payable approximate carrying values. | ||||||||||||||||
Deposits - The fair values of noninterest-bearing, interest-bearing demand and savings accounts are equal to the amount payable on demand at the balance sheet date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on such time deposits. | ||||||||||||||||
FHLB Advances - The fair value of these borrowings is estimated using a discounted cash flow calculation, based on current rates for similar debt for periods comparable to the remaining terms to maturity of these advances. | ||||||||||||||||
Other Borrowings - The fair value of these borrowings is estimated using discounted cash flow analyses using interest rates for similar financial instruments. | ||||||||||||||||
Off-Balance Sheet Commitments - Commitments include commitments to purchase and originate mortgage loans, commitments to sell mortgage loans, and standby letters of credit and are generally of a short-term nature. The fair values of such commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of these instruments is insignificant. | ||||||||||||||||
The estimated fair values of the Company’s financial instruments not carried at fair value in the consolidated balance sheets as of the dates noted below are as follows: | ||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
31-Dec-14 | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 29,575 | $ | 29,575 | $ | 29,575 | $ | - | $ | - | ||||||
Loans held for sale | 6,140 | 6,220 | - | 6,220 | - | |||||||||||
Loans, net | 1,003,518 | 1,006,233 | - | - | 1,006,233 | |||||||||||
FHLB stock | 11,964 | 11,964 | - | 11,964 | - | |||||||||||
Interest receivable | 3,730 | 3,730 | - | 3,730 | - | |||||||||||
Liabilities | ||||||||||||||||
Deposits | 1,079,320 | 1,050,295 | 648,314 | - | 401,981 | |||||||||||
FHLB advances | 192,442 | 191,995 | - | 191,995 | - | |||||||||||
Other borrowings | 10,174 | 10,283 | - | 10,283 | - | |||||||||||
Interest payable | 223 | 223 | - | 223 | - | |||||||||||
Fair Value Measurements Using | ||||||||||||||||
31-Dec-13 | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 25,285 | $ | 25,285 | $ | 25,285 | $ | - | $ | - | ||||||
Loans held for sale | 1,888 | 1,905 | - | 1,905 | - | |||||||||||
Loans, net | 965,966 | 935,414 | - | - | 935,414 | |||||||||||
FHLB stock | 14,391 | 14,391 | - | 14,391 | - | |||||||||||
Interest receivable | 3,775 | 3,775 | - | 3,775 | - | |||||||||||
Liabilities | ||||||||||||||||
Deposits | 1,113,084 | 1,068,422 | 593,457 | - | 474,965 | |||||||||||
FHLB advances | 142,928 | 141,526 | - | 141,526 | - | |||||||||||
Other borrowings | 10,890 | 11,148 | - | 11,148 | - | |||||||||||
Interest payable | 157 | 157 | - | 157 | - | |||||||||||
Condensed_Financial_Informatio
Condensed Financial Information (Parent Company Only) (MutualFirst Financial, Inc. [Member]) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
MutualFirst Financial, Inc. [Member] | |||||||||
Condensed Financial Information (Parent Company Only) | \Note 25: Condensed Financial Information (Parent Company Only) | ||||||||
Presented below is condensed financial information as to financial position, results of operations and cash flows of the Company: | |||||||||
Condensed Balance Sheets | |||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash on deposit with Bank | $ | 1,726 | $ | 412 | |||||
Cash on deposit with others | 657 | 658 | |||||||
Total cash | 2,383 | 1,070 | |||||||
Investment in common stock of Bank | 135,264 | 121,362 | |||||||
Deferred tax | 149 | 359 | |||||||
Other assets | - | 10 | |||||||
Total assets | $ | 137,796 | $ | 122,801 | |||||
Liabilities | |||||||||
Other borrowings | $ | 10,174 | $ | 10,890 | |||||
Other liabilities | 85 | 269 | |||||||
Total liabilities | 10,259 | 11,159 | |||||||
Stockholders' Equity | 127,537 | 111,642 | |||||||
Total liabilities and stockholders' equity | $ | 137,796 | $ | 122,801 | |||||
Condensed Statements of Income | |||||||||
2014 | 2013 | 2012 | |||||||
Income | |||||||||
Interest income from Bank | $ | 1 | $ | 4 | $ | 12 | |||
Dividends from Bank | 3,500 | 30,692 | 5,200 | ||||||
Other income | - | - | 17 | ||||||
Total income | 3,501 | 30,696 | 5,229 | ||||||
Expenses | 994 | 1,036 | 1,520 | ||||||
Income before income tax and equity in undistributed income of the Bank | 2,507 | 29,660 | 3,709 | ||||||
Income tax benefit | -337 | -342 | -451 | ||||||
Income before equity in undistributed income (distributions in excess of income) of the Bank | 2,844 | 30,002 | 4,160 | ||||||
Equity in undistributed income (distributions in excess of income) of the Bank | 7,974 | -20,802 | 3,086 | ||||||
Net Income | 10,818 | 9,200 | 7,246 | ||||||
Preferred stock dividends and accretion | - | 1,257 | 1,446 | ||||||
Net Income Available to Common Shareholders | $ | 10,818 | $ | 7,943 | $ | 5,800 | |||
Condensed Statements of Comprehensive Income | |||||||||
2014 | 2013 | 2012 | |||||||
Net income | $ | 10,818 | $ | 9,200 | $ | 7,246 | |||
Other comprehensive income: | |||||||||
Net unrealized holding gain (loss) on securities available-for-sale | 8,921 | -9,810 | 4,782 | ||||||
Net unrealized gain on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income | 381 | 800 | 43 | ||||||
Less: Reclassification adjustment for realized gains included in net income | -313 | -835 | -2,831 | ||||||
Net unrealized gain on derivative used for cash flow hedges | 150 | 157 | 56 | ||||||
Net unrealized gain (loss) relating to defined benefit plan | -209 | 149 | 399 | ||||||
8,930 | -9,539 | 2,449 | |||||||
Income tax (expense) benefit related to other comprehensive income | -3,137 | 3,321 | -849 | ||||||
Other comprehensive income (loss) | 5,793 | -6,218 | 1,600 | ||||||
Comprehensive income | $ | 16,611 | $ | 2,982 | $ | 8,846 | |||
Condensed Statements of Cash Flows | |||||||||
2014 | 2013 | 2012 | |||||||
Operating Activities | |||||||||
Net income | $ | 10,818 | $ | 9,200 | $ | 7,246 | |||
Item not requiring cash | |||||||||
ESOP shares earned | - | 474 | 329 | ||||||
Deferred income tax benefit | 159 | 71 | -263 | ||||||
(Equity in undistributed income) distributions in excess of income of subsidiary | -7,974 | 20,802 | -3,086 | ||||||
Other | 19 | -365 | 462 | ||||||
Net cash provided by operating activities | 3,022 | 30,182 | 4,688 | ||||||
Financing Activities | |||||||||
Repayment of other borrowings | -759 | -759 | -847 | ||||||
Stock repurchased | - | -28,924 | - | ||||||
Cash dividends | -2,297 | -2,953 | -3,113 | ||||||
Proceeds from stock options exercised | 1,347 | 570 | 551 | ||||||
Net cash used in financing activities | -1,709 | -32,066 | -3,409 | ||||||
Net Change in Cash | 1,313 | -1,884 | 1,279 | ||||||
Cash, Beginning of Year | 1,070 | 2,954 | 1,675 | ||||||
Cash, End of Year | $ | 2,383 | $ | 1,070 | $ | 2,954 | |||
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Quarterly Results of Operations [Abstract] | |||||||||||||||||||||||||
Quarterly Results of Operations | Note 26: Quarterly Results of Operations (Unaudited) | ||||||||||||||||||||||||
Quarter Ended | Interest Income | Interest Expense | Net Interest Income | Provision for Loan Losses | Net Income (Loss) | Net Income (Loss) Available to Common Shareholders | Basic Earnings Per Common Share | Diluted Earnings Per Common Share | |||||||||||||||||
2014 | |||||||||||||||||||||||||
31-Mar | $ | 12,738 | $ | 2,319 | $ | 10,419 | $ | 350 | $ | 1,963 | $ | 1,963 | $ | 0.28 | $ | 0.27 | |||||||||
30-Jun | 12,744 | 2,186 | 10,558 | 500 | 2,557 | 2,557 | 0.36 | 0.35 | |||||||||||||||||
30-Sep | 12,803 | 2,163 | 10,640 | - | 2,694 | 2,694 | 0.38 | 0.36 | |||||||||||||||||
31-Dec | 12,893 | 2,255 | 10,638 | - | 3,604 | 3,604 | 0.49 | 0.48 | |||||||||||||||||
Total | $ | 51,178 | $ | 8,923 | $ | 42,255 | $ | 850 | $ | 10,818 | $ | 10,818 | $ | 1.51 | $ | 1.46 | |||||||||
2013 | |||||||||||||||||||||||||
31-Mar | $ | 12,901 | $ | 2,922 | $ | 9,979 | $ | 950 | $ | 1,976 | $ | 1,614 | $ | 0.23 | $ | 0.22 | |||||||||
30-Jun | 12,877 | 2,857 | 10,020 | 550 | 2,112 | 1,834 | 0.26 | 0.25 | |||||||||||||||||
30-Sep | 13,041 | 2,801 | 10,240 | 750 | 2,472 | 2,201 | 0.31 | 0.30 | |||||||||||||||||
31-Dec | 12,848 | 2,644 | 10,204 | -950 | 2,640 | 2,294 | 0.32 | 0.32 | |||||||||||||||||
Total | $ | 51,667 | $ | 11,224 | $ | 40,443 | $ | 1,300 | $ | 9,200 | $ | 7,943 | $ | 1.12 | $ | 1.09 | |||||||||
2012 | |||||||||||||||||||||||||
31-Mar | $ | 13,909 | $ | 4,041 | $ | 9,868 | $ | 1,350 | $ | 1,426 | $ | 1,066 | $ | 0.16 | $ | 0.15 | |||||||||
30-Jun | 14,100 | 3,750 | 10,350 | 1,850 | 1,644 | 1,282 | 0.18 | 0.18 | |||||||||||||||||
30-Sep | 13,908 | 3,593 | 10,315 | 1,475 | 2,173 | 1,811 | 0.26 | 0.26 | |||||||||||||||||
31-Dec | 13,431 | 3,320 | 10,111 | 1,350 | 2,003 | 1,641 | 0.23 | 0.23 | |||||||||||||||||
Total | $ | 55,348 | $ | 14,704 | $ | 40,644 | $ | 6,025 | $ | 7,246 | $ | 5,800 | $ | 0.83 | $ | 0.82 | |||||||||
Nature_of_Operations_and_Summa1
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Nature of Operations and Summary of Significant Accounting Policies [Abstract] | |
Consolidation | Consolidation - The consolidated financial statements include the accounts of the Company, the Bank, and the Bank’s subsidiaries, after elimination of all material intercompany transactions. |
Cash Equivalents | Cash Equivalents - The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2014 and 2013, cash equivalents consisted primarily of money market accounts with brokers and checking accounts with government sponsored entities. |
At December 31, 2014, the Company’s cash accounts exceeded federally insured limits by approximately $12.2 million. Included in this amount are uninsured accounts of approximately $2.2 million at the Federal Reserve Bank of Chicago and Federal Home Loan Bank of Indianapolis. The majority of the remaining funds, $9.2 million, were held in a money market account for investment purchases. | |
Investment Securities | Investment Securities - Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. At December 31, 2014 and 2013, no securities were classified as held to maturity. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. When the Company does not intend to sell a debt security, and it is more likely than not that, the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. |
The Company’s consolidated statement of income reflects the full impairment (that is, the differences between the security’s amortized cost basis and fair value) on debt securities that the Company intends to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. For available-for-sale and held-to-maturity debt securities that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections. | |
For equity securities, when the Company has decided to sell an impaired available-for-sale security and does not expect the fair value of the security to fully recover before the expected time of sale, the security is deemed other-than-temporarily impaired in the period in which the decision to sell is made. The Company recognizes an impairment loss when the impairment is deemed other than temporary even if a decision to sell has not been made. | |
Declines in the fair value of securities below their cost that are other-than-temporary are reflected as realized losses. In estimating other-than-temporary losses, management considers the length of time and extent that fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the Company’s ability and intent to hold the security for a period sufficient to allow for any anticipated recovery in fair value. | |
Loans held for sale | Loans held for sale are carried at the lower of aggregate cost or market. Market is determined using the aggregate method. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income based on the difference between estimated sales proceeds and aggregate cost. |
Loans | Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. |
For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. | |
The accrual of interest on mortgage, consumer and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. | |
All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |
Discounts and premiums on purchased residential real estate and commercial loans is amortized to income using the interest method over the remaining period to contractual maturity, adjusted for anticipated prepayments. Discounts and premiums on purchased consumer loans are recognized over the expected lives of the loans using methods that approximate the interest method. | |
Allowance for loan losses | Allowance for loan losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the inability to collect a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. |
We maintain an allowance for loan losses to absorb losses inherent in the loan portfolio. The allowance is based on ongoing, quarterly assessments of the estimated losses inherent in the loan portfolio. Our methodology for assessing the appropriateness of the allowance consists of several key elements, including the general allowance and specific allowances for identified problem loans and portfolio segments. In addition, the allowance incorporates the results of measuring impaired loans as provided in ASC 310, Receivables. These accounting standards prescribe the measurement methods, income recognition and disclosures related to impaired loans. | |
The general allowance is calculated by applying loss factors to outstanding loans based on the internal risk evaluation of such loans or pools of loans. Changes in risk evaluations of both performing and nonperforming loans affect the amount of the general allowance. Loss factors are based on our historical loss experience as well as on significant factors that, in management’s judgment, affect the collectability of the portfolio as of the evaluation date. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior three years. Management believes the three year historical loss experience methodology is appropriate in the current economic environment, as it captures loss rates that are comparable to the current period being analyzed. | |
The appropriateness of the allowance is reviewed by management based upon its evaluation of then-existing economic and business conditions affecting our key lending areas and other conditions, such as credit quality trends (including trends in non-performing loans expected to result from existing conditions), collateral values, loan volumes and concentrations, specific industry conditions within portfolio segments and recent loss experience in particular segments of the portfolio that existed as of the balance sheet date and the impact that such conditions were believed to have had on the collectability of the loan. Senior management reviews these conditions quarterly in discussions with our senior credit officers. To the extent that any of these conditions is evidenced by a specifically identifiable problem credit or portfolio segment as of the evaluation date, management’s estimate of the effect of such condition may be reflected as a specific allowance applicable to such credit or portfolio segment. Where any of these conditions is not evidenced by a specifically identifiable problem credit or portfolio segment as of the evaluation date, management’s evaluation of the loss related to this condition is reflected in the general allowance for loan losses. The evaluation of the inherent loss with respect to these conditions is subject to a higher degree of uncertainty because they are not identified with specific problem credits or portfolio segments. | |
The allowance for loan losses is based on estimates of losses inherent in the loan portfolio. Actual losses can vary significantly from the estimated amounts. Our methodology as described permits adjustments to any loss factor used in the computation of the general allowance in the event that, in management’s judgment, significant factors which affect the collectability of the portfolio as of the evaluation date are not reflected in the loss factors. By assessing the probable incurred losses inherent in the loan portfolio on a quarterly basis, we are able to adjust specific and inherent loss estimates based upon any more recent information that has become available. Although employment began to stabilize in the prior year, the impact of job losses over the recent years combined with the decline in real estate values and the increase in higher risk loans, like consumer and commercial loans, as a percentage of total loans, management has concluded that our allowance for loan losses should be greater than historical loss experience and specifically identified losses would otherwise indicate. | |
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the ability to collect the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | |
The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. | |
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. | |
Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. | |
Premises and equipment | Premises and equipment are carried at cost net of accumulated depreciation. Depreciation is computed using the straight-line method based principally on the estimated useful lives of the assets which range from 3 to 50 years. Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Gains and losses on dispositions are included in current operations. |
Federal Home Loan Bank stock | Federal Home Loan Bank stock is a required investment for institutions that are members of the Federal Home Loan Bank (FHLB) system. The required investment in the common stock is based on a predetermined formula, carried at cost and is evaluated for impairment. |
Mortgage-servicing | Mortgage-servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance, servicing rights resulting from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. The Company subsequently measures each class of servicing asset using the amortization method. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment based on fair value at each reporting date. |
Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage servicing right and may result in a reduction to noninterest income. | |
Each class of separately recognized servicing assets subsequently measured using the amortization method are evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported with net servicing fees on the income statement. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized. | |
Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. | |
Investment in limited partnerships | Investment in limited partnerships is recorded primarily on the equity method of accounting. Losses due to impairment are recorded when it is determined that the investment no longer has the ability to recover its carrying amount. The benefits of low income housing tax credits associated with the investment are accrued when earned. |
Intangible assets | Intangible assets are being amortized on an accelerated basis over periods ranging from five to 11 years. Such assets are periodically evaluated as to the recoverability of their carrying value. |
Income taxes | Income taxes are accounted for in accordance with income tax accounting guidance. The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. |
Deferred tax assets are evaluated on a quarterly basis for recoverability based on all available evidence. This process involves significant management judgment about assumptions that are subject to change from period to period based on changes in tax laws or variances between our future projected operating performance and our actual results. We are required to establish a valuation allowance for deferred tax assets if we determine, based on available evidence at the time the determination is made, that it is more likely than not that some portion or all of the deferred tax assets will not be realized. In determining the more-likely-than-not criterion, we evaluate all positive and negative available evidence as of the end of each reporting period. Future adjustments to the deferred tax asset valuation allowance, if any, will be determined based upon changes in the expected realization of the net deferred tax assets. The realization of the deferred tax assets ultimately depends on the existence of sufficient taxable income in either the carry back or carry forward periods under applicable tax laws. Due to significant estimates utilized in establishing the valuation allowance and the potential for changes in facts and circumstances, it is reasonably possible that we will be required to record adjustments to the valuation allowance in the near term if estimates of future taxable income during the carry forward period are reduced. Such a charge could have a material adverse effect on our results of operations, financial condition, and capital position. | |
Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. | |
The Company recognizes interest and penalties on income taxes as a component of income tax expense. | |
The Company files consolidated income tax returns with its subsidiaries. | |
Earnings per share | Earnings per share is computed based upon the weighted-average common and common equivalent shares outstanding during each year. |
Comprehensive income | Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized gains (losses) on available-for-sale securities, unrealized gains (losses) on available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income, unrealized and realized gains and losses in derivative financial instruments and changes in the funded status of defined benefit pension plans. |
Stock options | Stock options. The Company has stock-based employee compensation plans, which are described more fully in Note 22. |
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Investment Securities [Abstract] | ||||||||||||||||||
Amortized Cost and Fair Values of Securities | The amortized costs and approximate fair values, together with gross unrealized gains and losses on securities, are as follows: | |||||||||||||||||
2014 | ||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||
Available for Sale Securities | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Government-sponsored agencies | $ | 110,452 | $ | 2,927 | $ | -89 | $ | 113,290 | ||||||||||
Collateralized mortgage obligations | ||||||||||||||||||
Government-sponsored agencies | 97,325 | 1,270 | -836 | 97,759 | ||||||||||||||
Federal agencies | 4 | - | - | 4 | ||||||||||||||
Municipal obligations | 27,246 | 2,013 | -7 | 29,252 | ||||||||||||||
Corporate obligations | 21,763 | 44 | -1,306 | 20,501 | ||||||||||||||
Total investment securities | $ | 256,790 | $ | 6,254 | $ | -2,238 | $ | 260,806 | ||||||||||
2013 | ||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||
Available for Sale Securities | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Government-sponsored agencies | $ | 104,006 | $ | 1,700 | $ | -2,189 | $ | 103,517 | ||||||||||
Collateralized mortgage obligations | ||||||||||||||||||
Government-sponsored agencies | 108,305 | 1,207 | -1,934 | 107,578 | ||||||||||||||
Federal agencies | 5,005 | - | -231 | 4,774 | ||||||||||||||
Municipal obligations | 27,357 | 257 | -276 | 27,338 | ||||||||||||||
Corporate obligations | 24,648 | 18 | -3,525 | 21,141 | ||||||||||||||
Total investment securities | $ | 269,321 | $ | 3,182 | $ | -8,155 | $ | 264,348 | ||||||||||
Amortized Cost and Fair Value of Available for Sale Securities by Contractual Maturity | The amortized cost and fair value of securities available for sale at December 31, 2014, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||
Available for Sale | ||||||||||||||||||
Description Securities | Amortized Cost | Fair Value | ||||||||||||||||
Security obligations due | ||||||||||||||||||
One to five years | $ | 9,604 | $ | 9,625 | ||||||||||||||
Five to ten years | 10,777 | 10,891 | ||||||||||||||||
After ten years | 28,632 | 29,241 | ||||||||||||||||
49,013 | 49,757 | |||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Government-sponsored agencies | 110,452 | 113,290 | ||||||||||||||||
Collateralized mortgage obligations | ||||||||||||||||||
Government-sponsored agencies | 97,325 | 97,759 | ||||||||||||||||
Totals | $ | 256,790 | $ | 260,806 | ||||||||||||||
Investments Gross Unrealized Losses and Fair Value in Continuous Unrealized Loss Position | The following tables show the gross unrealized losses and fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2014 and 2013: | |||||||||||||||||
2014 | ||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
Available for Sale | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Government-sponsored agencies | $ | 1,069 | $ | -9 | $ | 19,580 | $ | -80 | $ | 20,649 | $ | -89 | ||||||
Collateralized mortgage obligations | ||||||||||||||||||
Government-sponsored agencies | 5,075 | -40 | 34,159 | -796 | 39,234 | -836 | ||||||||||||
Municipal obligations | - | - | 631 | -7 | 631 | -7 | ||||||||||||
Corporate obligations | - | - | 6,995 | -1,306 | 6,995 | -1,306 | ||||||||||||
Total temporarily impaired securities | $ | 6,144 | $ | -49 | $ | 61,365 | $ | -2,189 | $ | 67,509 | $ | -2,238 | ||||||
2013 | ||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||
Available for Sale | ||||||||||||||||||
Mortgage-backed securities | ||||||||||||||||||
Government-sponsored agencies | $ | 67,130 | $ | -2,189 | $ | - | $ | - | $ | 67,130 | $ | -2,189 | ||||||
Collateralized mortgage obligations | ||||||||||||||||||
Government-sponsored agencies | 51,753 | -1,934 | - | - | 51,753 | -1,934 | ||||||||||||
Federal agencies | 4,769 | -231 | 4,769 | -231 | ||||||||||||||
Municipal obligations | 11,264 | -245 | 741 | -31 | 12,005 | -276 | ||||||||||||
Corporate obligations | 8,849 | -151 | 3,336 | -3,374 | 12,185 | -3,525 | ||||||||||||
Total temporarily impaired securities | $ | 143,765 | $ | -4,750 | $ | 4,077 | $ | -3,405 | $ | 147,842 | $ | -8,155 | ||||||
Debt Securities for which Credit Loss was Recognized in Income and Other Losses Recorded in Other Comprehensive Income | The following table provides information about debt securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income. | |||||||||||||||||
Accumulated Credit Losses | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||
Credit losses on debt securities held | ||||||||||||||||||
Beginning of period | $ | 1,205 | $ | 1,205 | $ | 3,567 | ||||||||||||
Reductions related to actual losses incurred | - | - | -2,362 | |||||||||||||||
Reductions for previous credit losses realized on securities sold during the year | -1,096 | - | - | |||||||||||||||
As of December 31, | $ | 109 | $ | 1,205 | $ | 1,205 | ||||||||||||
Loans_and_Allowance_Tables
Loans and Allowance (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Loans and Allowance [Abstract] | |||||||||||||||||||||
Schedule of Classes of Loans | Classes of loans at December 31, 2014 and 2013 include: | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 198,019 | $ | 200,817 | |||||||||||||||||
Commercial construction and development | 33,102 | 13,321 | |||||||||||||||||||
Consumer closed end first mortgage | 517,063 | 531,272 | |||||||||||||||||||
Consumer open end and junior liens | 71,073 | 69,354 | |||||||||||||||||||
819,257 | 814,764 | ||||||||||||||||||||
Other loans | |||||||||||||||||||||
Consumer loans | |||||||||||||||||||||
Auto | 14,712 | 14,856 | |||||||||||||||||||
Boat/RVs | 94,761 | 79,419 | |||||||||||||||||||
Other | 5,184 | 5,766 | |||||||||||||||||||
Commercial and industrial | 88,474 | 75,402 | |||||||||||||||||||
203,131 | 175,443 | ||||||||||||||||||||
Total loans | 1,022,388 | 990,207 | |||||||||||||||||||
Undisbursed loans in process | -9,285 | -13,346 | |||||||||||||||||||
Unamortized deferred loan costs, net | 3,583 | 2,517 | |||||||||||||||||||
Allowance for loan losses | -13,168 | -13,412 | |||||||||||||||||||
Net loans | $ | 1,003,518 | $ | 965,966 | |||||||||||||||||
Non-Accrual Loans Segregated by Class of Loans | Year-end non-accrual loans, segregated by class of loans, were as follows: | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 2,023 | $ | 1,349 | |||||||||||||||||
Commercial construction and development | 209 | 1,103 | |||||||||||||||||||
Consumer closed end first mortgage | 3,499 | 4,057 | |||||||||||||||||||
Consumer open end and junior liens | 658 | 421 | |||||||||||||||||||
Consumer loans | |||||||||||||||||||||
Auto | - | 10 | |||||||||||||||||||
Boat/RVs | 191 | 339 | |||||||||||||||||||
Other | 27 | 12 | |||||||||||||||||||
Commercial and industrial | 605 | 1,109 | |||||||||||||||||||
$ | 7,212 | $ | 8,400 | ||||||||||||||||||
Age Analysis of Past Due Loans Segregated by Class of Loans | An age analysis of the Company’s past due loans, segregated by class of loans, as of December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Total Loans Receivable | Total Loans 90 Days or More and Accruing | |||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 1,308 | $ | 848 | $ | 325 | $ | 2,481 | $ | 195,538 | $ | 198,019 | $ | - | |||||||
Commercial construction and development | - | - | 209 | 209 | 32,893 | 33,102 | - | ||||||||||||||
Consumer closed end first mortgage | 8,144 | 1,220 | 2,160 | 11,524 | 505,539 | 517,063 | 226 | ||||||||||||||
Consumer open end and junior liens | 969 | 130 | 27 | 1,126 | 69,947 | 71,073 | - | ||||||||||||||
Consumer loans | |||||||||||||||||||||
Auto | 65 | - | - | 65 | 14,647 | 14,712 | - | ||||||||||||||
Boat/RVs | 775 | 158 | 115 | 1,048 | 93,713 | 94,761 | - | ||||||||||||||
Other | 92 | 27 | 14 | 133 | 5,051 | 5,184 | - | ||||||||||||||
Commercial and industrial | 1,066 | 176 | 441 | 1,683 | 86,791 | 88,474 | - | ||||||||||||||
$ | 12,419 | $ | 2,559 | $ | 3,291 | $ | 18,269 | $ | 1,004,119 | $ | 1,022,388 | $ | 226 | ||||||||
31-Dec-13 | |||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due | Current | Total Loans Receivable | Total Loans 90 Days or More and Accruing | |||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 763 | $ | 196 | $ | 1,196 | $ | 2,155 | $ | 198,662 | $ | 200,817 | $ | - | |||||||
Commercial construction and development | 333 | - | 915 | 1,248 | 12,073 | 13,321 | - | ||||||||||||||
Consumer closed end first mortgage | 11,680 | 2,122 | 3,515 | 17,317 | 513,955 | 531,272 | 175 | ||||||||||||||
Consumer open end and junior liens | 609 | 185 | 394 | 1,188 | 68,166 | 69,354 | - | ||||||||||||||
Consumer loans | |||||||||||||||||||||
Auto | 54 | 8 | 9 | 71 | 14,785 | 14,856 | - | ||||||||||||||
Boat/RVs | 1,410 | 262 | 202 | 1,874 | 77,545 | 79,419 | 13 | ||||||||||||||
Other | 61 | 3 | - | 64 | 5,702 | 5,766 | - | ||||||||||||||
Commercial and industrial | 67 | 393 | 531 | 991 | 74,411 | 75,402 | - | ||||||||||||||
$ | 14,977 | $ | 3,169 | $ | 6,762 | $ | 24,908 | $ | 965,299 | $ | 990,207 | $ | 188 | ||||||||
Impaired Loans | The following tables present impaired loans for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | |||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 4,933 | $ | 4,933 | $ | - | $ | 3,776 | $ | 161 | |||||||||||
Commercial construction and development | 931 | 1,860 | - | 1,323 | 30 | ||||||||||||||||
Consumer closed end first mortgage | 1,138 | 1,138 | - | 1,142 | 8 | ||||||||||||||||
Consumer open end and junior liens | - | - | - | 100 | 3 | ||||||||||||||||
Commercial and industrial | 758 | 789 | - | 923 | 12 | ||||||||||||||||
Total | $ | 7,760 | $ | 8,720 | $ | - | $ | 7,264 | $ | 214 | |||||||||||
As of December 31, 2014, there were no impaired loans with a valuation allowance. | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | |||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 3,148 | $ | 3,660 | $ | - | $ | 3,894 | $ | 160 | |||||||||||
Commercial construction and development | 1,294 | 3,218 | - | 5,386 | 46 | ||||||||||||||||
Consumer closed end first mortgage | 1,483 | 2,071 | - | 2,582 | 33 | ||||||||||||||||
Commercial and industrial | 764 | 764 | - | 897 | 2 | ||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial construction and development | 344 | 371 | 100 | 344 | - | ||||||||||||||||
Commercial and industrial | 424 | 624 | 235 | 566 | 20 | ||||||||||||||||
Total | $ | 7,457 | $ | 10,708 | $ | 335 | $ | 13,669 | $ | 261 | |||||||||||
31-Dec-12 | |||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment in Impaired Loans | Interest Income Recognized | |||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | $ | 5,341 | $ | 6,354 | $ | - | $ | 5,384 | $ | 248 | |||||||||||
Commercial construction and development | 3,632 | 7,078 | - | 4,884 | 30 | ||||||||||||||||
Consumer closed end first mortgage | 2,583 | 3,522 | - | 3,755 | 58 | ||||||||||||||||
Commercial and industrial | 972 | 972 | - | 2,828 | 117 | ||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | 208 | 947 | 100 | 211 | 12 | ||||||||||||||||
Commercial construction and development | 4,639 | 5,157 | 959 | 5,230 | 78 | ||||||||||||||||
Consumer closed end first mortgage | 834 | 834 | 57 | 654 | - | ||||||||||||||||
Commercial and industrial | 912 | 912 | 257 | 921 | 30 | ||||||||||||||||
Total | $ | 19,121 | $ | 25,776 | $ | 1,373 | $ | 23,867 | $ | 573 | |||||||||||
Commercial and Retail Credit Exposure Credit Risk Profile by Internal Rating | |||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Commercial Credit Exposure Credit Risk Profile | |||||||||||||||||||||
Internal Rating | Real Estate | Construction and Development | Commercial and Industrial | ||||||||||||||||||
Pass | $ | 187,436 | $ | 30,422 | $ | 84,746 | |||||||||||||||
Special Mention | 3,316 | 1,721 | 439 | ||||||||||||||||||
Substandard | 7,267 | 959 | 2,848 | ||||||||||||||||||
Doubtful | - | - | 441 | ||||||||||||||||||
Total | $ | 198,019 | $ | 33,102 | $ | 88,474 | |||||||||||||||
Consumer Credit Exposure Credit Risk Profile | |||||||||||||||||||||
Internal Rating | Closed End First Mortgage | Real Estate Open End and Junior Liens | Auto | Boat/RV | Other | ||||||||||||||||
Pass | $ | 509,765 | $ | 70,299 | $ | 14,704 | $ | 94,377 | $ | 5,125 | |||||||||||
Special Mention | - | - | - | - | - | ||||||||||||||||
Substandard | 7,298 | 774 | 8 | 384 | 59 | ||||||||||||||||
Total | $ | 517,063 | $ | 71,073 | $ | 14,712 | $ | 94,761 | $ | 5,184 | |||||||||||
31-Dec-13 | |||||||||||||||||||||
Commercial Credit Exposure Credit Risk Profile | |||||||||||||||||||||
Internal Rating | Real Estate | Construction and Development | Commercial and Industrial | ||||||||||||||||||
Pass | $ | 190,041 | $ | 9,910 | $ | 73,648 | |||||||||||||||
Special Mention | 3,308 | 1,659 | 223 | ||||||||||||||||||
Substandard | 7,468 | 1,752 | 1,000 | ||||||||||||||||||
Doubtful | - | - | 531 | ||||||||||||||||||
Total | $ | 200,817 | $ | 13,321 | $ | 75,402 | |||||||||||||||
Consumer Credit Exposure Credit Risk Profile | |||||||||||||||||||||
Internal Rating | Closed End First Mortgage | Real Estate Open End and Junior Liens | Auto | Boat/RV | Other | ||||||||||||||||
Pass | $ | 522,352 | $ | 68,445 | $ | 14,834 | $ | 78,863 | $ | 5,415 | |||||||||||
Special Mention | 1,783 | - | - | - | - | ||||||||||||||||
Substandard | 7,137 | 909 | 22 | 556 | 351 | ||||||||||||||||
Total | $ | 531,272 | $ | 69,354 | $ | 14,856 | $ | 79,419 | $ | 5,766 | |||||||||||
Activity in Allowance for Loan Losses by Portfolio Segment | The following tables detail activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2014, 2013 and 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses on other segments. | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Commercial | Mortgage | Consumer | Total | ||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||
Balance, beginning of year | $ | 8,148 | $ | 3,124 | $ | 2,140 | $ | 13,412 | |||||||||||||
Provision charged to expense | -1,273 | 888 | 1,235 | 850 | |||||||||||||||||
Losses charged off | -289 | -572 | -1,021 | -1,882 | |||||||||||||||||
Recoveries | 499 | 31 | 258 | 788 | |||||||||||||||||
Balance, end of period | $ | 7,085 | $ | 3,471 | $ | 2,612 | $ | 13,168 | |||||||||||||
Ending balance: | |||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Collectively evaluated for impairment | 7,085 | 3,471 | 2,612 | 13,168 | |||||||||||||||||
Total allowance for loan losses | $ | 7,085 | $ | 3,471 | $ | 2,612 | $ | 13,168 | |||||||||||||
Loans: | |||||||||||||||||||||
Ending balance | |||||||||||||||||||||
Individually evaluated for impairment | $ | 6,622 | $ | 1,138 | $ | - | $ | 7,760 | |||||||||||||
Collectively evaluated for impairment | 312,973 | 515,925 | 185,730 | 1,014,628 | |||||||||||||||||
Total Loans | $ | 319,595 | $ | 517,063 | $ | 185,730 | $ | 1,022,388 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||
Commercial | Mortgage | Consumer | Total | ||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||
Balance, beginning of year | $ | 9,908 | $ | 3,394 | $ | 2,736 | $ | 16,038 | |||||||||||||
Provision charged to expense | 884 | 343 | 73 | 1,300 | |||||||||||||||||
Losses charged off | -2,713 | -886 | -940 | -4,539 | |||||||||||||||||
Recoveries | 69 | 273 | 271 | 613 | |||||||||||||||||
Balance, end of period | $ | 8,148 | $ | 3,124 | $ | 2,140 | $ | 13,412 | |||||||||||||
Ending balance: | |||||||||||||||||||||
Individually evaluated for impairment | $ | 335 | $ | - | $ | - | $ | 335 | |||||||||||||
Collectively evaluated for impairment | 7,813 | 3,124 | 2,140 | 13,077 | |||||||||||||||||
Total allowance for loan losses | $ | 8,148 | $ | 3,124 | $ | 2,140 | $ | 13,412 | |||||||||||||
Loans: | |||||||||||||||||||||
Ending balance | |||||||||||||||||||||
Individually evaluated for impairment | $ | 5,974 | $ | 1,483 | $ | - | $ | 7,457 | |||||||||||||
Collectively evaluated for impairment | 283,566 | 529,789 | 169,395 | 982,750 | |||||||||||||||||
Total Loans | $ | 289,540 | $ | 531,272 | $ | 169,395 | $ | 990,207 | |||||||||||||
31-Dec-12 | |||||||||||||||||||||
Commercial | Mortgage | Consumer | Total | ||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||
Balance, beginning of year | $ | 10,602 | $ | 3,444 | $ | 2,769 | $ | 16,815 | |||||||||||||
Provision charged to expense | 3,213 | 1,612 | 1,200 | 6,025 | |||||||||||||||||
Losses charged off | -4,493 | -1,901 | -1,608 | -8,002 | |||||||||||||||||
Recoveries | 586 | 239 | 375 | 1,200 | |||||||||||||||||
Balance, end of period | $ | 9,908 | $ | 3,394 | $ | 2,736 | $ | 16,038 | |||||||||||||
Ending balance: | |||||||||||||||||||||
Individually evaluated for impairment | $ | 1,316 | $ | 57 | $ | - | $ | 1,373 | |||||||||||||
Collectively evaluated for impairment | 8,592 | 3,337 | 2,736 | 14,665 | |||||||||||||||||
Total allowance for loan losses | $ | 9,908 | $ | 3,394 | $ | 2,736 | $ | 16,038 | |||||||||||||
Loans: | |||||||||||||||||||||
Ending balance | |||||||||||||||||||||
Individually evaluated for impairment | $ | 15,704 | $ | 3,417 | $ | - | $ | 19,121 | |||||||||||||
Collectively evaluated for impairment | 273,144 | 499,202 | 199,102 | 971,448 | |||||||||||||||||
Total Loans | $ | 288,848 | $ | 502,619 | $ | 199,102 | $ | 990,569 | |||||||||||||
Troubled Debts Restructured | The following tables describe troubled debts restructured during the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
No. of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | |||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | 6 | $ | 1,229 | $ | 1,248 | ||||||||||||||||
Consumer closed end first mortgage | 12 | 1,493 | 1,139 | ||||||||||||||||||
Consumer open end and junior liens | 5 | 58 | 59 | ||||||||||||||||||
Commercial and industrial | 2 | 193 | 223 | ||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
No. of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | |||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | 3 | $ | 1,532 | $ | 1,601 | ||||||||||||||||
Consumer closed end first mortgage | 24 | 1,706 | 1,884 | ||||||||||||||||||
Consumer open end and junior liens | 30 | 1,236 | 1,249 | ||||||||||||||||||
Consumer loans | |||||||||||||||||||||
Auto | 2 | 22 | 22 | ||||||||||||||||||
Boat/RVs | 6 | 172 | 171 | ||||||||||||||||||
Other | 1 | 11 | 11 | ||||||||||||||||||
Commercial and industrial | 3 | 1,122 | 843 | ||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
No. of Loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | |||||||||||||||||||
Real estate | |||||||||||||||||||||
Commercial | 10 | $ | 2,239 | $ | 2,399 | ||||||||||||||||
Commercial construction and development | 3 | 1,047 | 1,133 | ||||||||||||||||||
Consumer closed end first mortgage | 57 | 3,857 | 4,098 | ||||||||||||||||||
Consumer open end and junior liens | 14 | 592 | 590 | ||||||||||||||||||
Consumer loans | |||||||||||||||||||||
Auto | 4 | 34 | 33 | ||||||||||||||||||
Boat/RVs | 7 | 154 | 153 | ||||||||||||||||||
Other | 4 | 53 | 52 | ||||||||||||||||||
Commercial and industrial | 6 | 325 | 386 | ||||||||||||||||||
Newly Restructured Loans by Types | Newly restructured loans by type for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
Interest Only | Term | Combination | Total Modification | ||||||||||||||||||
Real Estate | |||||||||||||||||||||
Commercial | $ | - | $ | 701 | $ | 547 | $ | 1,248 | |||||||||||||
Consumer closed end first mortgage | 101 | - | 1,038 | 1,139 | |||||||||||||||||
Consumer open end junior lien | - | 28 | 31 | 59 | |||||||||||||||||
Commercial and industrial | - | 223 | - | 223 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Interest Only | Term | Combination | Total Modification | ||||||||||||||||||
Real Estate | |||||||||||||||||||||
Commercial | $ | - | $ | - | $ | 1,601 | $ | 1,601 | |||||||||||||
Consumer closed end first mortgage | - | 36 | 1,848 | 1,884 | |||||||||||||||||
Consumer open end junior lien | 250 | 402 | 597 | 1,249 | |||||||||||||||||
Consumer Loans | |||||||||||||||||||||
Auto | - | 4 | 18 | 22 | |||||||||||||||||
Boat/RVs | - | 135 | 36 | 171 | |||||||||||||||||
Other | - | - | 11 | 11 | |||||||||||||||||
Commercial and industrial | - | 209 | 634 | 843 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Interest Only | Term | Combination | Total Modification | ||||||||||||||||||
Real Estate | |||||||||||||||||||||
Commercial | $ | - | $ | 1,281 | $ | 1,118 | $ | 2,399 | |||||||||||||
Commercial construction and development | - | 961 | 172 | 1,133 | |||||||||||||||||
Consumer closed end first mortgage | 320 | 189 | 3,589 | 4,098 | |||||||||||||||||
Consumer open end junior lien | - | 97 | 493 | 590 | |||||||||||||||||
Consumer Loans | |||||||||||||||||||||
Auto | - | 29 | 4 | 33 | |||||||||||||||||
Boat/RVs | - | 153 | - | 153 | |||||||||||||||||
Other | - | 8 | 44 | 52 | |||||||||||||||||
Commercial and industrial | - | 143 | 243 | 386 | |||||||||||||||||
Troubled Debts Restructured Defaulted | Defaults of any loans modified as troubled debt restructurings made in the years ended December 31, 2014, 2013 and 2012, respectively, are listed in the table below. Defaults are defined as any loans that become 90 days past due. We have included one other commercial loan in the default category due to a large subsequent charge-off after modification. | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||
No. of Loans | Post-Modification Outstanding Recorded Balance | ||||||||||||||||||||
Real Estate | |||||||||||||||||||||
Consumer closed end first mortgage | 4 | $ | 663 | ||||||||||||||||||
Consumer open end and junior liens | 1 | 23 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
No. of Loans | Post-Modification Outstanding Recorded Balance | ||||||||||||||||||||
Real Estate | |||||||||||||||||||||
Consumer closed end first mortgage | 3 | $ | 210 | ||||||||||||||||||
Commercial and industrial | 1 | 634 | |||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
No. of Loans | Post-Modification Outstanding Recorded Balance | ||||||||||||||||||||
Real Estate | |||||||||||||||||||||
Commercial | 1 | $ | 109 | ||||||||||||||||||
Consumer closed end first mortgage | 2 | 61 | |||||||||||||||||||
Consumer Loans | |||||||||||||||||||||
Other | 1 | 14 | |||||||||||||||||||
Commercial and industrial | 1 | 518 | |||||||||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Related Party Transactions [Abstract] | |||
Aggregate Amount of Loans to Related Parties | The aggregate amount of loans, as defined, to such related parties was as follows: | ||
2014 | |||
Balances, January 1, | $ | 6,784 | |
Change in composition | 1,345 | ||
New loans, including renewals | 4,349 | ||
Payments, etc., including renewals | -4,511 | ||
Balances, December 31, | $ | 7,967 | |
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Premises and Equipment [Abstract] | ||||||
Premises and Equipment | Major classifications of premises and equipment, stated at cost, are as follows: | |||||
2014 | 2013 | |||||
Cost | ||||||
Land | $ | 13,100 | $ | 12,842 | ||
Buildings and land improvements | 25,334 | 26,005 | ||||
Equipment | 12,555 | 13,548 | ||||
Total cost | 50,989 | 52,395 | ||||
Accumulated depreciation and amortization | -20,050 | -20,924 | ||||
Net | $ | 30,939 | $ | 31,471 | ||
Investment_in_Limited_Partners1
Investment in Limited Partnerships (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Investment in Limited Partnerships [Abstract] | |||||||||
Investment in Limited Partnerships | The investments in limited partnerships are as follows: | ||||||||
2014 | 2013 | ||||||||
Pedcor Investments 1997-XXVIII (99.00 percent ownership) | $ | 566 | $ | 849 | |||||
Pedcor Investments 1987-XXXI (49.5 percent ownership) | - | 63 | |||||||
Pedcor Investments 2000-XLI (50.0 percent ownership) | 330 | 412 | |||||||
Pedcor Investments 2001-LI (9.90 percent ownership) | 85 | 107 | |||||||
Pedcor Investments 2008-CIII (21.50 percent ownership) | 601 | 661 | |||||||
$ | 1,582 | $ | 2,092 | ||||||
Combined Financial Statements for Limited Partnerships Recorded Under Equity Method of Accounting | Combined financial statements for the limited partnerships recorded under the equity method of accounting are as follows: | ||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash | $ | 394 | $ | 474 | |||||
Land and property | 47,124 | 48,722 | |||||||
Other assets | 2,737 | 2,258 | |||||||
Total assets | $ | 50,255 | $ | 51,454 | |||||
Liabilities | |||||||||
Notes payable | $ | 42,488 | $ | 42,376 | |||||
Other liabilities | 1,359 | 1,375 | |||||||
Total liabilities | $ | 43,847 | $ | 43,751 | |||||
Partners' equity | |||||||||
General partners | $ | -3,671 | $ | -3,652 | |||||
Limited partners | 10,079 | 11,355 | |||||||
Total partners' equity | $ | 6,408 | $ | 7,703 | |||||
Total liabilities and partners' equity | $ | 50,255 | $ | 51,454 | |||||
2014 | 2013 | 2012 | |||||||
Combined condensed statements of operations | |||||||||
Total revenue | $ | 7,110 | $ | 6,786 | $ | 6,606 | |||
Total expenses | -7,655 | -7,472 | -6,905 | ||||||
Net loss | $ | -545 | $ | -686 | $ | -299 | |||
Core_Deposit_and_Other_Intangi1
Core Deposit and Other Intangibles (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Core Deposit and Other Intangibles [Abstract] | ||||||
Carrying Basis of Recognized Intangible Assets | The carrying basis of recognized intangible assets at December 31, 2014 and 2013, were: | |||||
2014 | 2013 | |||||
Core deposits | $ | 840 | $ | 1,396 | ||
Other intangibles | 265 | 233 | ||||
$ | 1,105 | $ | 1,629 | |||
Estimated Amortization Expense | Estimated amortization expense for each of the next five years is: | |||||
2015 | $ | 499 | ||||
2016 | 345 | |||||
2017 | 189 | |||||
2018 | 58 | |||||
2019 | 14 | |||||
$ | 1,105 | |||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Goodwill [Abstract] | |||
Schedule of Goodwill | The changes in the carrying amount of goodwill for the year ended December 31, 2014 was: | ||
2014 | |||
Balance as of January 1 | $ | - | |
Goodwill acquired during the year | 1,800 | ||
Balance as of December 31 | $ | 1,800 | |
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Deposits [Abstract] | ||||||
Deposits | ||||||
Deposits were comprised of the following at December 31, 2014 and 2013: | ||||||
2014 | 2013 | |||||
Noninterest-bearing demand | $ | 154,178 | $ | 144,195 | ||
Interest-bearing demand | 253,042 | 262,114 | ||||
Savings | 124,051 | 119,380 | ||||
Money market savings | 146,847 | 115,600 | ||||
Certificates and other time deposits of $100,000 or more | 164,543 | 182,003 | ||||
Other certificates | 236,659 | 289,792 | ||||
Total deposits | $ | 1,079,320 | $ | 1,113,084 | ||
Certificates, Including Other Time Deposits | Certificates, including other time deposits of $100,000 or more, maturing in years ending December 31 are as follows: | |||||
2015 | $ | 184,267 | ||||
2016 | 77,221 | |||||
2017 | 55,981 | |||||
2018 | 35,000 | |||||
2019 | 35,060 | |||||
Thereafter | 13,673 | |||||
$ | 401,202 | |||||
Federal_Home_Loan_Bank_Advance1
Federal Home Loan Bank Advances (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Federal Home Loan Bank Advances [Abstract] | |||
Federal Home Loan Bank Advances Maturing by Period | FHLB advances maturing in years ending December 31 are as follows: | ||
2015 | $ | 41,824 | |
2016 | 26 | ||
2017 | 39,028 | ||
2018 | 37,030 | ||
2019 | 38,533 | ||
Thereafter | 36,001 | ||
$ | 192,442 | ||
Other_Borrowings_Tables
Other Borrowings (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Other Borrowings [Abstract] | ||||||
Components of Other Borrowings | Other borrowings consisted of the following components as of December 31: | |||||
2014 | 2013 | |||||
Note payable | $ | 6,071 | $ | 6,830 | ||
Subordinated debenture | 4,103 | 4,060 | ||||
Total | $ | 10,174 | $ | 10,890 | ||
Maturity of Notes Payable | The maturity of the First Tennessee note is as follows: | |||||
Principal Payments Due in Years Ending December 31: | ||||||
2015 | $ | 759 | ||||
2016 | 759 | |||||
2017 | 4,553 | |||||
$ | 6,071 | |||||
Loan_Servicing_Tables
Loan Servicing (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Loan Servicing [Abstract] | |||||||||
Unpaid Principal Balances of Loans Serviced | Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of these loans consist of the following: | ||||||||
2014 | 2013 | ||||||||
Loans serviced for | |||||||||
Freddie Mac | $ | 295,589 | $ | 303,313 | |||||
Fannie Mae | 16,024 | 20,881 | |||||||
FHLB | 12,963 | 10,958 | |||||||
Other investors | 1,670 | 1,811 | |||||||
$ | 326,246 | $ | 336,963 | ||||||
Mortgage-Servicing Rights | |||||||||
2014 | 2013 | 2012 | |||||||
Mortgage-servicing rights | |||||||||
Balances, January 1 | $ | 1,858 | $ | 2,396 | $ | 3,101 | |||
Servicing rights capitalized | 278 | 464 | 294 | ||||||
Amortization of servicing rights | -719 | -1,002 | -999 | ||||||
1,417 | 1,858 | 2,396 | |||||||
Valuation allowance | - | - | -665 | ||||||
$ | 1,417 | $ | 1,858 | $ | 1,731 | ||||
Fair Value of Servicing Rights | The fair value of servicing rights subsequently measured using the amortization method was as follows: | ||||||||
2014 | 2013 | 2012 | |||||||
Mortgage-servicing rights | |||||||||
Fair value, beginning of period | $ | 2,106 | $ | 1,731 | $ | 2,626 | |||
Fair value, end of period | 2,048 | 2,106 | 1,731 | ||||||
Activity in Valuation Allowance for Mortgage Servicing Right | Activity in the valuation allowance for mortgage servicing rights was as follows: | ||||||||
2014 | 2013 | 2012 | |||||||
Balance, beginning of year | $ | - | $ | 665 | $ | 475 | |||
Additions | - | - | 190 | ||||||
Reductions | - | -665 | - | ||||||
Balance, end of year | $ | - | $ | - | $ | 665 | |||
Income_Tax_Tables
Income Tax (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Tax [Abstract] | ||||||||||
Provision for Income Taxes | The provision for income taxes includes these components: | |||||||||
2014 | 2013 | 2012 | ||||||||
Income tax expense | ||||||||||
Currently payable | ||||||||||
Federal | $ | 2,930 | $ | 2,272 | $ | 1,745 | ||||
State | -261 | -677 | 305 | |||||||
Deferred | ||||||||||
Federal | 433 | 1,372 | 887 | |||||||
State | 481 | 841 | -305 | |||||||
Total income tax expense | $ | 3,583 | $ | 3,808 | $ | 2,632 | ||||
Reconciliation of Income Tax Expenses At Federal Rate to Actual Tax Expense | A reconciliation of income tax expense at the federal statutory rate to actual tax expense is shown below: | |||||||||
2014 | 2013 | 2012 | ||||||||
Federal statutory income tax at 34% | $ | 4,897 | $ | 4,423 | $ | 3,359 | ||||
Other than temporary impairment | -615 | - | - | |||||||
State taxes | 145 | 109 | - | |||||||
Low income housing credits | -107 | -159 | -283 | |||||||
Tax-exempt income | -818 | -725 | -587 | |||||||
Other | 81 | 160 | 143 | |||||||
Actual tax expense | $ | 3,583 | $ | 3,808 | $ | 2,632 | ||||
Effective tax rate | 24.88 | % | 29.28 | % | 26.64 | % | ||||
Components of Deferred Assets | The components of the deferred asset included on the consolidated balance sheets were as follows: | |||||||||
2014 | 2013 | |||||||||
Assets | ||||||||||
Unrealized loss on securities available for sale | $ | - | $ | 1,762 | ||||||
Allowance for loan losses | 5,344 | 5,439 | ||||||||
Deferred compensation | 3,191 | 2,970 | ||||||||
Business tax and AMT credit carryovers | 5,463 | 7,140 | ||||||||
Capital loss carryover | 144 | 548 | ||||||||
Net operating loss carryover | 2,148 | 2,684 | ||||||||
Goodwill impairment | 2,611 | 3,032 | ||||||||
Purchase accounting adjustments | 1,120 | 1,161 | ||||||||
Other | 1,306 | 920 | ||||||||
Total assets | 21,327 | 25,656 | ||||||||
Liabilities | ||||||||||
Unrealized gain on securities available for sale | $ | -1,375 | $ | - | ||||||
Depreciation and amortization | -532 | -833 | ||||||||
FHLB stock | -447 | -541 | ||||||||
State income tax | -757 | -1,011 | ||||||||
Loan fees | -245 | -770 | ||||||||
Investments in limited partnerships | -2,584 | -2,596 | ||||||||
Mortgage servicing rights | -501 | -732 | ||||||||
Other | -361 | -336 | ||||||||
Total liabilities | -6,802 | -6,819 | ||||||||
Valuation Allowance | ||||||||||
Beginning balance | -1,835 | -1,835 | ||||||||
Decrease during period | 615 | - | ||||||||
Ending balance | -1,220 | -1,835 | ||||||||
Net deferred tax asset | $ | 13,305 | $ | 17,002 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||||||||||||
Components of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income, included in stockholders’ equity, are as follows: | |||||||||||
2014 | 2013 | |||||||||||
Net unrealized gain (loss) on securities available-for-sale | $ | 4,933 | $ | -2,029 | ||||||||
Net unrealized loss on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income | -917 | -2,945 | ||||||||||
Net unrealized loss on derivative used for cash flow hedges | -109 | -259 | ||||||||||
Net unrealized gain relating to defined benefit plan liability | -109 | 100 | ||||||||||
3,798 | -5,133 | |||||||||||
Tax expense (benefit) | 1,420 | -1,718 | ||||||||||
Net of tax amount | $ | 2,378 | $ | -3,415 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income (Loss) | The following table presents the reclassification adjustments out of accumulated other comprehensive income (loss) that were included in net income in the Consolidated Statement of Income for the years ended December 31, 2014, 2013 and 2012. | |||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income For the Year Ended December 31, | ||||||||||||
Details about Accumulated Other Comprehensive Income Components | 2014 | 2013 | 2012 | Affected Line Item in the Statements of Income | ||||||||
Unrealized gains (losses) on available-for-sale securities | ||||||||||||
Realized securities gains reclassified into income | $ | 313 | $ | 835 | $ | 2,831 | Net realized gains on sale of available-for-sale securities | |||||
Related income tax expense | -106 | -284 | -963 | Income tax expense | ||||||||
Total reclassifications for the period, net of tax | $ | 207 | $ | 551 | $ | 1,868 | ||||||
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Commitments and Contingent Liabilities [Abstract] | ||||||
Financial Instruments Contract Amount That Represents Credit Risk | Financial instruments whose contract amount represents credit risk as of December 31: | |||||
2014 | 2013 | |||||
Loan commitments | $ | 200,189 | $ | 185,702 | ||
Standby letters of credit | 2,288 | 2,909 | ||||
Regulatory_Capital_Tables
Regulatory Capital (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Regulatory Capital [Abstract] | ||||||||||||||||||
Actual Capital Amounts and Ratios | The Company’s and Bank’s actual capital amounts and ratios are presented in the table below. | |||||||||||||||||
31-Dec-14 | ||||||||||||||||||
Actual Capital Levels | Minimum Regulatory Capital Levels | Minimum Required To be Considered Well-Capitalized | ||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||
Leverage Capital Level(1): | ||||||||||||||||||
MutualFirst Consolidated | $ | 120,568 | 8.5 | % | $ | 56,687 | 4.0 | % | $ | N/A | N/A | % | ||||||
MutualBank | 124,083 | 8.8 | 56,610 | 4.0 | 70,763 | 5.0 | ||||||||||||
Tier 1 Risk-Based Capital Level (2) : | ||||||||||||||||||
MutualFirst Consolidated | $ | 120,568 | 12.3 | % | $ | 39,269 | 4.0 | % | $ | 58,903 | 6.0 | % | ||||||
MutualBank | 124,083 | 12.6 | 39,257 | 4.0 | 58,886 | 6.0 | ||||||||||||
Total Risk-Based Capital Level (3) : | ||||||||||||||||||
MutualFirst Consolidated | $ | 132,847 | 13.5 | % | $ | 78,537 | 8.0 | % | $ | 98,171 | 10.0 | % | ||||||
MutualBank | 136,362 | 13.9 | 78,515 | 8.0 | 98,143 | 10.0 | ||||||||||||
(1) Tier 1 Capital to Average Total Assets of $1.4 billion for the Bank and $1.4 billion for the Company at December 31, 2014. | ||||||||||||||||||
(2) Tier 1 Capital to Risk-Weighted Assets of $981.4 million for the Bank and $981.7 million for the Company at December 31, 2014. | ||||||||||||||||||
(3) Total Capital to Risk-Weighted Assets. | ||||||||||||||||||
31-Dec-13 | ||||||||||||||||||
Actual Capital Levels | Minimum Regulatory Capital Levels | Minimum Required To be Considered Well-Capitalized | ||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||
Leverage Capital Level(1): | ||||||||||||||||||
MutualFirst Consolidated | $ | 109,771 | 7.9 | % | $ | 55,652 | 4.0 | % | $ | N/A | N/A | % | ||||||
MutualBank | 115,174 | 8.3 | 55,621 | 4.0 | 69,526 | 5.0 | ||||||||||||
Tier 1 Risk-Based Capital Level (2) : | ||||||||||||||||||
MutualFirst Consolidated | $ | 109,771 | 11.3 | % | $ | 38,754 | 4.0 | % | $ | 58,131 | 6.0 | % | ||||||
MutualBank | 115,174 | 11.9 | 38,733 | 4.0 | 58,099 | 6.0 | ||||||||||||
Total Risk-Based Capital Level (3) : | ||||||||||||||||||
MutualFirst Consolidated | $ | 121,891 | 12.6 | % | $ | 77,507 | 8.0 | % | $ | 96,884 | 10.0 | % | ||||||
MutualBank | 127,294 | 13.2 | 77,466 | 8.0 | 96,832 | 10.0 | ||||||||||||
(1) Tier 1 Capital to Average Total Assets of $1.4 billion for the Bank and $1.4 billion for the Company at December 31, 2013. | ||||||||||||||||||
(2) Tier 1 Capital to Risk-Weighted Assets of $968.3 million for the Bank and $968.8 million for the Company at December 31, 2013. | ||||||||||||||||||
(3) Total Capital to Risk-Weighted Assets. | ||||||||||||||||||
Employee_Benefits_Tables
Employee Benefits (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Employee Benefits [Abstract] | |||||||||
Information on Employee Stock Ownership Plan Shares | The following table provides information on ESOP shares at December 31: | ||||||||
2014 | 2013 | 2012 | |||||||
Allocated shares | 426,877 | 414,896 | 397,176 | ||||||
Suspense shares | - | - | 31,785 | ||||||
Committed-to-be released shares | - | 31,785 | 31,783 | ||||||
Stock_Option_Plans_Tables
Stock Option Plans (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Stock Option Plans [Abstract] | |||||||||||
Summary of Status and Changes in Stock Option Plan | The following is a summary of the status of the Company’s stock option plans and changes in these plans during 2014. | ||||||||||
2014 | |||||||||||
Options | Shares | Weighted- Average Exercise Price | Weighted-Average Remaining Contractual Life | Aggregate Intrinsic Value | |||||||
Outstanding, beginning of year | 687,043 | $ | 10.70 | ||||||||
Exercised | -118,823 | 11.34 | |||||||||
Outstanding and exercisable, end of year | 568,220 | $ | 10.57 | 6.5 years | $ | 6,570 | |||||
Assumptions Used to Determine Fair Value of Options Granted | The following assumptions were used to determine the fair value of options granted in 2012. | ||||||||||
2012 | |||||||||||
Risk-free interest rate | 1.70% | ||||||||||
Expected option life | 10.0 yrs | ||||||||||
Dividend yield | 3.45% | ||||||||||
Expected volatility of stock price | 31.50% | ||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule of Earnings Per Share | Earnings per share were computed as follows: | |||||||
2014 | ||||||||
Income | Weighted- Average Shares | Per-Share Amount | ||||||
Basic Earnings Per Share | ||||||||
Income available to common stockholders | 10,818 | 7,160,700 | $ | 1.51 | ||||
Effect of Dilutive Securities | ||||||||
Stock options | - | 231,131 | ||||||
Diluted Earnings Per Share | ||||||||
Income available to common stockholders and assumed conversions | $ | 10,818 | 7,391,831 | $ | 1.46 | |||
2013 | ||||||||
Income | Weighted- Average Shares | Per-Share Amount | ||||||
Basic Earnings Per Share | ||||||||
Net income | $ | 9,200 | 7,076,877 | |||||
Dividends and accretion on preferred stock | -1,257 | |||||||
Income available to common stockholders | 7,943 | 7,076,877 | $ | 1.12 | ||||
Effect of Dilutive Securities | ||||||||
Stock options | - | 180,941 | ||||||
Diluted Earnings Per Share | ||||||||
Income available to common stockholders and assumed conversions | $ | 7,943 | 7,257,818 | $ | 1.09 | |||
2012 | ||||||||
Income | Weighted- Average Shares | Per-Share Amount | ||||||
Basic Earnings Per Share | ||||||||
Net income | $ | 7,246 | 6,951,727 | |||||
Dividends and accretion on preferred stock | -1,446 | |||||||
Income available to common stockholders | 5,800 | 6,951,727 | $ | 0.83 | ||||
Effect of Dilutive Securities | ||||||||
Stock options | - | 103,957 | ||||||
Diluted Earnings Per Share | ||||||||
Income available to common stockholders and assumed conversions | $ | 5,800 | 7,055,684 | $ | 0.82 | |||
Fair_Values_of_Financial_Instr1
Fair Values of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Values of Financial Instruments [Abstract] | ||||||||||||||||
Fair Value Measurements of Assets Measured at Fair Value on Recurring Basis | The following table presents the fair value measurements of assets measured at fair value on a recurring basis and level within the ASC 820 fair value hierarchy in which the fair value measurements fall: | |||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Dec-14 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||
Government sponsored agencies | $ | 113,290 | $ | - | $ | 113,290 | $ | - | ||||||||
Collateralized mortgage obligations | ||||||||||||||||
Government sponsored agencies | 97,759 | - | 97,759 | - | ||||||||||||
Federal agencies | 4 | - | 4 | - | ||||||||||||
Municipal obligations | 29,252 | - | 29,252 | - | ||||||||||||
Corporate obligations | 20,501 | - | 17,979 | 2,522 | ||||||||||||
Available-for-sale securities | $ | 260,806 | $ | - | $ | 258,284 | $ | 2,522 | ||||||||
Fair Value Measurements Using | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Dec-13 | ||||||||||||||||
Mortgage-backed securities | ||||||||||||||||
Government sponsored agencies | $ | 103,517 | $ | - | $ | 103,517 | $ | - | ||||||||
Collateralized mortgage obligations | ||||||||||||||||
Government sponsored agencies | 107,578 | - | 107,578 | - | ||||||||||||
Federal agencies | 4,774 | - | 4,774 | - | ||||||||||||
Municipal obligations | 27,338 | - | 27,338 | - | ||||||||||||
Corporate obligations | 21,141 | - | 17,805 | 3,336 | ||||||||||||
Available-for-sale securities | $ | 264,348 | $ | - | $ | 261,012 | $ | 3,336 | ||||||||
Reconciliation of Recurring Fair Value Measurements Recognized in Balance Sheet using Significant Unobservable (Level Three) Inputs | The following is a reconciliation of the beginning and ending balances for the years ended December 31, 2014, 2013 and 2012 of recurring fair value measurements recognized in the accompanying balance sheets using significant unobservable (Level 3) inputs: | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Beginning balance | $ | 3,336 | $ | 2,475 | $ | 2,454 | ||||||||||
Total realized and unrealized gains (losses) | ||||||||||||||||
Included in net income | -68 | - | - | |||||||||||||
Included in other comprehensive income (loss) | 2,098 | 897 | 30 | |||||||||||||
Sales | -2,826 | - | - | |||||||||||||
Settlements | -18 | -36 | -9 | |||||||||||||
Ending balance | $ | 2,522 | $ | 3,336 | $ | 2,475 | ||||||||||
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date | $ | 0 | $ | 0 | $ | 0 | ||||||||||
Fair Value Measurement of Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fall: | |||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Dec-14 | ||||||||||||||||
Other real estate owned | $ | 1,280 | $ | - | $ | - | $ | 1,280 | ||||||||
Fair Value Measurements Using | ||||||||||||||||
Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
31-Dec-13 | ||||||||||||||||
Impaired loans | $ | 925 | $ | - | $ | - | $ | 925 | ||||||||
Other real estate owned | 1,677 | - | - | 1,677 | ||||||||||||
Mortgage-servicing rights | 2,106 | - | - | 2,106 | ||||||||||||
Quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. | |||||||||||||||
31-Dec-14 | Fair Value | Valuation Technique | Unobservable Inputs | Range | ||||||||||||
Trust Preferred Securities | $ | 2,522 | Discounted cash flow | Discount rate | 8.0 | % | ||||||||||
Constant prepayment rate | 2.0 | % | ||||||||||||||
Cumulative projected prepayments | 40.0 | % | ||||||||||||||
Probability of default | 1.7 - 1.8 | % | ||||||||||||||
Projected cures given deferral | 0 - 15.0 | % | ||||||||||||||
Loss severity | 34.2 - 39.8 | % | ||||||||||||||
Other real estate owned | $ | 1,280 | Third party valuations | Discount to reflect realizable value less estimated selling costs | 24.4 - 36.7 | % | ||||||||||
31-Dec-13 | Fair Value | Valuation Technique | Unobservable Inputs | Range | ||||||||||||
Trust Preferred Securities | $ | 3,336 | Discounted cash flow | Discount rate | 10.0 - 17.0 | % | ||||||||||
Constant prepayment rate | 2.0 | % | ||||||||||||||
Cumulative projected prepayments | 40.0 | % | ||||||||||||||
Probability of default | 1.5 - 2.7 | % | ||||||||||||||
Projected cures given deferral | 0 - 15.0 | % | ||||||||||||||
Loss severity | 46.9 - 73.7 | % | ||||||||||||||
Impaired loans (collateral dependent) | $ | 925 | Third party valuations | Discount to reflect realizable value | 7.3 - 78.3 | % | ||||||||||
Other real estate owned | $ | 1,677 | Third party valuations | Discount to reflect realizable value less estimated selling costs | 0 - 25.0 | % | ||||||||||
Mortgage-servicing rights | $ | 2,106 | Third party valuations | Prepayment speeds | 105 - 700 | % | ||||||||||
Discount rates | 10.0 | % | ||||||||||||||
Servicing fee | 0.25 | % | ||||||||||||||
Estimated Fair Values of Financial Instruments | The estimated fair values of the Company’s financial instruments not carried at fair value in the consolidated balance sheets as of the dates noted below are as follows: | |||||||||||||||
Fair Value Measurements Using | ||||||||||||||||
31-Dec-14 | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 29,575 | $ | 29,575 | $ | 29,575 | $ | - | $ | - | ||||||
Loans held for sale | 6,140 | 6,220 | - | 6,220 | - | |||||||||||
Loans, net | 1,003,518 | 1,006,233 | - | - | 1,006,233 | |||||||||||
FHLB stock | 11,964 | 11,964 | - | 11,964 | - | |||||||||||
Interest receivable | 3,730 | 3,730 | - | 3,730 | - | |||||||||||
Liabilities | ||||||||||||||||
Deposits | 1,079,320 | 1,050,295 | 648,314 | - | 401,981 | |||||||||||
FHLB advances | 192,442 | 191,995 | - | 191,995 | - | |||||||||||
Other borrowings | 10,174 | 10,283 | - | 10,283 | - | |||||||||||
Interest payable | 223 | 223 | - | 223 | - | |||||||||||
Fair Value Measurements Using | ||||||||||||||||
31-Dec-13 | Carrying Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 25,285 | $ | 25,285 | $ | 25,285 | $ | - | $ | - | ||||||
Loans held for sale | 1,888 | 1,905 | - | 1,905 | - | |||||||||||
Loans, net | 965,966 | 935,414 | - | - | 935,414 | |||||||||||
FHLB stock | 14,391 | 14,391 | - | 14,391 | - | |||||||||||
Interest receivable | 3,775 | 3,775 | - | 3,775 | - | |||||||||||
Liabilities | ||||||||||||||||
Deposits | 1,113,084 | 1,068,422 | 593,457 | - | 474,965 | |||||||||||
FHLB advances | 142,928 | 141,526 | - | 141,526 | - | |||||||||||
Other borrowings | 10,890 | 11,148 | - | 11,148 | - | |||||||||||
Interest payable | 157 | 157 | - | 157 | - | |||||||||||
Condensed_Financial_Informatio1
Condensed Financial Information (Parent Company Only) (Tables) (MutualFirst Financial, Inc. [Member]) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
MutualFirst Financial, Inc. [Member] | |||||||||
Condensed Balance Sheets | |||||||||
Condensed Balance Sheets | |||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash on deposit with Bank | $ | 1,726 | $ | 412 | |||||
Cash on deposit with others | 657 | 658 | |||||||
Total cash | 2,383 | 1,070 | |||||||
Investment in common stock of Bank | 135,264 | 121,362 | |||||||
Deferred tax | 149 | 359 | |||||||
Other assets | - | 10 | |||||||
Total assets | $ | 137,796 | $ | 122,801 | |||||
Liabilities | |||||||||
Other borrowings | $ | 10,174 | $ | 10,890 | |||||
Other liabilities | 85 | 269 | |||||||
Total liabilities | 10,259 | 11,159 | |||||||
Stockholders' Equity | 127,537 | 111,642 | |||||||
Total liabilities and stockholders' equity | $ | 137,796 | $ | 122,801 | |||||
Condensed Statements of Income | |||||||||
Condensed Statements of Income | |||||||||
2014 | 2013 | 2012 | |||||||
Income | |||||||||
Interest income from Bank | $ | 1 | $ | 4 | $ | 12 | |||
Dividends from Bank | 3,500 | 30,692 | 5,200 | ||||||
Other income | - | - | 17 | ||||||
Total income | 3,501 | 30,696 | 5,229 | ||||||
Expenses | 994 | 1,036 | 1,520 | ||||||
Income before income tax and equity in undistributed income of the Bank | 2,507 | 29,660 | 3,709 | ||||||
Income tax benefit | -337 | -342 | -451 | ||||||
Income before equity in undistributed income (distributions in excess of income) of the Bank | 2,844 | 30,002 | 4,160 | ||||||
Equity in undistributed income (distributions in excess of income) of the Bank | 7,974 | -20,802 | 3,086 | ||||||
Net Income | 10,818 | 9,200 | 7,246 | ||||||
Preferred stock dividends and accretion | - | 1,257 | 1,446 | ||||||
Net Income Available to Common Shareholders | $ | 10,818 | $ | 7,943 | $ | 5,800 | |||
Condensed Statements of Comprehensive Income | |||||||||
Condensed Statements of Comprehensive Income | |||||||||
2014 | 2013 | 2012 | |||||||
Net income | $ | 10,818 | $ | 9,200 | $ | 7,246 | |||
Other comprehensive income: | |||||||||
Net unrealized holding gain (loss) on securities available-for-sale | 8,921 | -9,810 | 4,782 | ||||||
Net unrealized gain on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income | 381 | 800 | 43 | ||||||
Less: Reclassification adjustment for realized gains included in net income | -313 | -835 | -2,831 | ||||||
Net unrealized gain on derivative used for cash flow hedges | 150 | 157 | 56 | ||||||
Net unrealized gain (loss) relating to defined benefit plan | -209 | 149 | 399 | ||||||
8,930 | -9,539 | 2,449 | |||||||
Income tax (expense) benefit related to other comprehensive income | -3,137 | 3,321 | -849 | ||||||
Other comprehensive income (loss) | 5,793 | -6,218 | 1,600 | ||||||
Comprehensive income | $ | 16,611 | $ | 2,982 | $ | 8,846 | |||
Condensed Statements of Cash Flows | |||||||||
Condensed Statements of Cash Flows | |||||||||
2014 | 2013 | 2012 | |||||||
Operating Activities | |||||||||
Net income | $ | 10,818 | $ | 9,200 | $ | 7,246 | |||
Item not requiring cash | |||||||||
ESOP shares earned | - | 474 | 329 | ||||||
Deferred income tax benefit | 159 | 71 | -263 | ||||||
(Equity in undistributed income) distributions in excess of income of subsidiary | -7,974 | 20,802 | -3,086 | ||||||
Other | 19 | -365 | 462 | ||||||
Net cash provided by operating activities | 3,022 | 30,182 | 4,688 | ||||||
Financing Activities | |||||||||
Repayment of other borrowings | -759 | -759 | -847 | ||||||
Stock repurchased | - | -28,924 | - | ||||||
Cash dividends | -2,297 | -2,953 | -3,113 | ||||||
Proceeds from stock options exercised | 1,347 | 570 | 551 | ||||||
Net cash used in financing activities | -1,709 | -32,066 | -3,409 | ||||||
Net Change in Cash | 1,313 | -1,884 | 1,279 | ||||||
Cash, Beginning of Year | 1,070 | 2,954 | 1,675 | ||||||
Cash, End of Year | $ | 2,383 | $ | 1,070 | $ | 2,954 | |||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Quarterly Results of Operations [Abstract] | |||||||||||||||||||||||||
Schedule of Quarterly Financial Information | |||||||||||||||||||||||||
Quarter Ended | Interest Income | Interest Expense | Net Interest Income | Provision for Loan Losses | Net Income (Loss) | Net Income (Loss) Available to Common Shareholders | Basic Earnings Per Common Share | Diluted Earnings Per Common Share | |||||||||||||||||
2014 | |||||||||||||||||||||||||
31-Mar | $ | 12,738 | $ | 2,319 | $ | 10,419 | $ | 350 | $ | 1,963 | $ | 1,963 | $ | 0.28 | $ | 0.27 | |||||||||
30-Jun | 12,744 | 2,186 | 10,558 | 500 | 2,557 | 2,557 | 0.36 | 0.35 | |||||||||||||||||
30-Sep | 12,803 | 2,163 | 10,640 | - | 2,694 | 2,694 | 0.38 | 0.36 | |||||||||||||||||
31-Dec | 12,893 | 2,255 | 10,638 | - | 3,604 | 3,604 | 0.49 | 0.48 | |||||||||||||||||
Total | $ | 51,178 | $ | 8,923 | $ | 42,255 | $ | 850 | $ | 10,818 | $ | 10,818 | $ | 1.51 | $ | 1.46 | |||||||||
2013 | |||||||||||||||||||||||||
31-Mar | $ | 12,901 | $ | 2,922 | $ | 9,979 | $ | 950 | $ | 1,976 | $ | 1,614 | $ | 0.23 | $ | 0.22 | |||||||||
30-Jun | 12,877 | 2,857 | 10,020 | 550 | 2,112 | 1,834 | 0.26 | 0.25 | |||||||||||||||||
30-Sep | 13,041 | 2,801 | 10,240 | 750 | 2,472 | 2,201 | 0.31 | 0.30 | |||||||||||||||||
31-Dec | 12,848 | 2,644 | 10,204 | -950 | 2,640 | 2,294 | 0.32 | 0.32 | |||||||||||||||||
Total | $ | 51,667 | $ | 11,224 | $ | 40,443 | $ | 1,300 | $ | 9,200 | $ | 7,943 | $ | 1.12 | $ | 1.09 | |||||||||
2012 | |||||||||||||||||||||||||
31-Mar | $ | 13,909 | $ | 4,041 | $ | 9,868 | $ | 1,350 | $ | 1,426 | $ | 1,066 | $ | 0.16 | $ | 0.15 | |||||||||
30-Jun | 14,100 | 3,750 | 10,350 | 1,850 | 1,644 | 1,282 | 0.18 | 0.18 | |||||||||||||||||
30-Sep | 13,908 | 3,593 | 10,315 | 1,475 | 2,173 | 1,811 | 0.26 | 0.26 | |||||||||||||||||
31-Dec | 13,431 | 3,320 | 10,111 | 1,350 | 2,003 | 1,641 | 0.23 | 0.23 | |||||||||||||||||
Total | $ | 55,348 | $ | 14,704 | $ | 40,644 | $ | 6,025 | $ | 7,246 | $ | 5,800 | $ | 0.83 | $ | 0.82 | |||||||||
Nature_of_Operations_and_Summa2
Nature of Operations and Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Uninsured accounts | $12.20 |
Premises and equipment depreciation method used | straight-line |
Money Market Funds [Member] | |
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Uninsured accounts | 9.2 |
Minimum [Member] | |
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Premises and equipment estimated useful lives | 3 years |
Intangible assets amortization period | 5 years |
Maximum [Member] | |
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Premises and equipment estimated useful lives | 50 years |
Intangible assets amortization period | 11 years |
Federal Reserve Bank of Chicago and Federal Home Loan Bank of Indianapolis | |
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | |
Uninsured accounts | $2.20 |
Restriction_on_Cash_Narrative_
Restriction on Cash (Narrative) (Details) (USD $) | Dec. 31, 2013 |
Restriction on Cash [Abstract] | |
Cash and cash equivalent reserved amount | $1,911,000 |
Investment_Securities_Narrativ
Investment Securities (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investment [Line Items] | |||
Fair value of investments reported at less than historical cost | $67,500,000 | $147,800,000 | |
Percentage of Bank portfolio | 25.90% | 55.90% | |
Securities pledged as collateral | 0 | 2,140,000 | |
Proceeds from sales of securities, available for sale | 28,317,000 | 53,179,000 | 98,326,000 |
Gross realized gain on sale of securities | 1,176,000 | 898,000 | 2,831,000 |
Gross realized losses on sale of securities | $863,000 | $63,000 | $0 |
Banks, thrifts or other depository institutions to all projected defaults | |||
Investment [Line Items] | |||
Collateral recovery probability percentage | 10.00% | ||
Insurance Companies to all projected insurance defaults | |||
Investment [Line Items] | |||
Collateral recovery probability percentage | 15.00% |
Investment_Securities_Amortize
Investment Securities (Amortized Cost and Fair Values of Securities ) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $256,790 | $269,321 |
Gross Unrealized Gains | 6,254 | 3,182 |
Gross Unrealized Losses | -2,238 | -8,155 |
Fair Value | 260,806 | 264,348 |
Mortgage-backed securities, Government sponsored agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 110,452 | 104,006 |
Gross Unrealized Gains | 2,927 | 1,700 |
Gross Unrealized Losses | -89 | -2,189 |
Fair Value | 113,290 | 103,517 |
Collateralized Mortgage Obligations, Government Sponsored Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 97,325 | 108,305 |
Gross Unrealized Gains | 1,270 | 1,207 |
Gross Unrealized Losses | -836 | -1,934 |
Fair Value | 97,759 | 107,578 |
Federal Aagencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4 | 5,005 |
Gross Unrealized Losses | -231 | |
Fair Value | 4 | 4,774 |
Municipals [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 27,246 | 27,357 |
Gross Unrealized Gains | 2,013 | 257 |
Gross Unrealized Losses | -7 | -276 |
Fair Value | 29,252 | 27,338 |
Corporate Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 21,763 | 24,648 |
Gross Unrealized Gains | 44 | 18 |
Gross Unrealized Losses | -1,306 | -3,525 |
Fair Value | $20,501 | $21,141 |
Investment_Securities_Amortize1
Investment Securities (Amortized Cost and Fair Value of Available-for-Sale Securities by Contractual Maturity) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Security obligations due, amortized cost, One to five years | $9,604 | |
Security obligations due, amortized cost, Five to ten years | 10,777 | |
Security obligations due, amortized cost, After ten years | 28,632 | |
Total security obligations due, amortized cost | 49,013 | |
Available for sale, amortized cost | 256,790 | 269,321 |
Security obligations due, Fair value, One to five years | 9,625 | |
Security obligations due, Fair value, Five to ten years | 10,891 | |
Security obligations due, Fair value, After ten years | 29,241 | |
Total Security obligations due, Fair value | 49,757 | |
Investment securities available for sale | 260,806 | 264,348 |
Mortgage-backed securities, Government sponsored agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 110,452 | 104,006 |
Investment securities available for sale | 113,290 | 103,517 |
Collateralized Mortgage Obligations, Government Sponsored Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 97,325 | 108,305 |
Investment securities available for sale | $97,759 | $107,578 |
Investment_Securities_Investme
Investment Securities (Investments Gross Unrealized Losses and Fair Value in Continuous Unrealized Loss Position) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total, Fair Value | $67,500 | $147,800 |
Collateralized Mortgage Obligations, Government Sponsored Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 5,075 | 51,753 |
Less than 12 months, Unrealized Losses | -40 | -1,934 |
12 months or more, Fair Value | 34,159 | |
12 months or more, Unrealized Losses | -796 | |
Total, Fair Value | 39,234 | 51,753 |
Total, Unrealized Losses | -836 | -1,934 |
Federal Aagencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 4,769 | |
Less than 12 months, Unrealized Losses | -231 | |
Total, Fair Value | 4,769 | |
Total, Unrealized Losses | -231 | |
Municipals [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 11,264 | |
Less than 12 months, Unrealized Losses | -245 | |
12 months or more, Fair Value | 631 | 741 |
12 months or more, Unrealized Losses | -7 | -31 |
Total, Fair Value | 631 | 12,005 |
Total, Unrealized Losses | -7 | -276 |
Corporate Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 8,849 | |
Less than 12 months, Unrealized Losses | -151 | |
12 months or more, Fair Value | 6,995 | 3,336 |
12 months or more, Unrealized Losses | -1,306 | -3,374 |
Total, Fair Value | 6,995 | 12,185 |
Total, Unrealized Losses | -1,306 | -3,525 |
Total Temporarily Impaired Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 6,144 | 143,765 |
Less than 12 months, Unrealized Losses | -49 | -4,750 |
12 months or more, Fair Value | 61,365 | 4,077 |
12 months or more, Unrealized Losses | -2,189 | -3,405 |
Total, Fair Value | 67,509 | 147,842 |
Total, Unrealized Losses | -2,238 | -8,155 |
Mortgage-backed securities, Government sponsored agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 1,069 | 67,130 |
Less than 12 months, Unrealized Losses | -9 | -2,189 |
12 months or more, Fair Value | 19,580 | |
12 months or more, Unrealized Losses | -80 | |
Total, Fair Value | 20,649 | 67,130 |
Total, Unrealized Losses | ($89) | ($2,189) |
Investment_Securities_Debt_Sec
Investment Securities (Debt Securities for which Credit Loss was Recognized in Income and Other Losses Recorded in Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investment Securities [Abstract] | |||
Credit losses on debt securities held, beginning of year | $1,205 | $1,205 | $3,567 |
Reductions related to actual losses incurred | -2,362 | ||
Reductions for previous credit losses realized on securities sold during the year | -1,096 | ||
Credit losses on debt securities held, end of period | $109 | $1,205 | $1,205 |
Loans_Categories_of_Loans_Deta
Loans (Categories of Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $1,022,388 | $990,207 | $990,569 | |
Undisbursed loans in process | -9,285 | -13,346 | ||
Unamortized deferred loan costs, net | 3,583 | 2,517 | ||
Allowance for loan losses | -13,168 | -13,412 | -16,038 | -16,815 |
Net loans | 1,003,518 | 965,966 | ||
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 319,595 | 289,540 | 288,848 | |
Allowance for loan losses | -7,085 | -8,148 | -9,908 | -10,602 |
Commercial Construction and Development [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 33,102 | 13,321 | ||
Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 185,730 | 169,395 | 199,102 | |
Allowance for loan losses | -2,612 | -2,140 | -2,736 | -2,769 |
First Mortgage [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 517,063 | 531,272 | ||
Consumer Open End and Junior Liens [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 71,073 | 69,354 | ||
Consumer Auto [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 14,712 | 14,856 | ||
Consumer Boat/RVs [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 94,761 | 79,419 | ||
Consumer Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 5,184 | 5,766 | ||
Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 819,257 | 814,764 | ||
Real Estate [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 198,019 | 200,817 | ||
Real Estate [Member] | Commercial Construction and Development [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 33,102 | 13,321 | ||
Real Estate [Member] | First Mortgage [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 517,063 | 531,272 | ||
Real Estate [Member] | Consumer Open End and Junior Liens [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 71,073 | 69,354 | ||
Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 203,131 | 175,443 | ||
Other [Member] | Consumer Auto [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 14,712 | 14,856 | ||
Other [Member] | Consumer Boat/RVs [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 94,761 | 79,419 | ||
Other [Member] | Consumer Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 5,184 | 5,766 | ||
Commercial and Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $88,474 | $75,402 |
Loans_NonAccrual_Loan_Segregat
Loans (Non-Accrual Loan, Segregated by Class of Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $7,212 | $8,400 |
Commercial and Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 605 | 1,109 |
Commercial Real Estate [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 2,023 | 1,349 |
Commercial Construction and Development [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 209 | 1,103 |
First Mortgage [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 3,499 | 4,057 |
Consumer Open End and Junior Liens [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 658 | 421 |
Consumer Auto [Member] | Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 10 | |
Consumer Boat/RVs [Member] | Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 191 | 339 |
Consumer Other [Member] | Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $27 | $12 |
Loans_Age_Analysis_of_Past_Due
Loans (Age Analysis of Past Due Loans Segregated by Class of Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | $12,419 | $14,977 | |
60-89 Days Past Due | 2,559 | 3,169 | |
Greater Than 90 Days or More Past Due | 3,291 | 6,762 | |
Total Past Due | 18,269 | 24,908 | |
Current | 1,004,119 | 965,299 | |
Total loans receivable | 1,022,388 | 990,207 | 990,569 |
Total Loans > 90 Days or More and Accruing | 226 | 188 | |
Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 517,063 | 531,272 | 502,619 |
Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 319,595 | 289,540 | 288,848 |
Commercial Construction and Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 33,102 | 13,321 | |
First Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 517,063 | 531,272 | |
Consumer Open End and Junior Liens [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 71,073 | 69,354 | |
Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 185,730 | 169,395 | 199,102 |
Consumer Auto [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 14,712 | 14,856 | |
Consumer Boat/RVs [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 94,761 | 79,419 | |
Consumer Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 5,184 | 5,766 | |
Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 819,257 | 814,764 | |
Real Estate [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 1,308 | 763 | |
60-89 Days Past Due | 848 | 196 | |
Greater Than 90 Days or More Past Due | 325 | 1,196 | |
Total Past Due | 2,481 | 2,155 | |
Current | 195,538 | 198,662 | |
Total loans receivable | 198,019 | 200,817 | |
Real Estate [Member] | Commercial Construction and Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 333 | ||
Greater Than 90 Days or More Past Due | 209 | 915 | |
Total Past Due | 209 | 1,248 | |
Current | 32,893 | 12,073 | |
Total loans receivable | 33,102 | 13,321 | |
Real Estate [Member] | First Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 8,144 | 11,680 | |
60-89 Days Past Due | 1,220 | 2,122 | |
Greater Than 90 Days or More Past Due | 2,160 | 3,515 | |
Total Past Due | 11,524 | 17,317 | |
Current | 505,539 | 513,955 | |
Total loans receivable | 517,063 | 531,272 | |
Total Loans > 90 Days or More and Accruing | 226 | 175 | |
Real Estate [Member] | Consumer Open End and Junior Liens [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 969 | 609 | |
60-89 Days Past Due | 130 | 185 | |
Greater Than 90 Days or More Past Due | 27 | 394 | |
Total Past Due | 1,126 | 1,188 | |
Current | 69,947 | 68,166 | |
Total loans receivable | 71,073 | 69,354 | |
Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total loans receivable | 203,131 | 175,443 | |
Other [Member] | Consumer Auto [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 65 | 54 | |
60-89 Days Past Due | 8 | ||
Greater Than 90 Days or More Past Due | 9 | ||
Total Past Due | 65 | 71 | |
Current | 14,647 | 14,785 | |
Total loans receivable | 14,712 | 14,856 | |
Other [Member] | Consumer Boat/RVs [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 775 | 1,410 | |
60-89 Days Past Due | 158 | 262 | |
Greater Than 90 Days or More Past Due | 115 | 202 | |
Total Past Due | 1,048 | 1,874 | |
Current | 93,713 | 77,545 | |
Total loans receivable | 94,761 | 79,419 | |
Total Loans > 90 Days or More and Accruing | 13 | ||
Other [Member] | Consumer Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 92 | 61 | |
60-89 Days Past Due | 27 | 3 | |
Greater Than 90 Days or More Past Due | 14 | ||
Total Past Due | 133 | 64 | |
Current | 5,051 | 5,702 | |
Total loans receivable | 5,184 | 5,766 | |
Commercial and Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 1,066 | 67 | |
60-89 Days Past Due | 176 | 393 | |
Greater Than 90 Days or More Past Due | 441 | 531 | |
Total Past Due | 1,683 | 991 | |
Current | 86,791 | 74,411 | |
Total loans receivable | $88,474 | $75,402 |
Loans_Impaired_Loans_Details
Loans (Impaired Loans) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Impaired Financing Receivable With Related Allowance [Abstract] | |||
Specific Allowance | $335 | $1,373 | |
Interest income recognized | 261 | ||
Impaired Financing Receivables Total [Abstract] | |||
Recorded balance, total | 7,760 | 7,457 | 19,121 |
Unpaid principal balance, total | 8,720 | 10,708 | 25,776 |
Average investment in impaired loans, total | 7,264 | 13,669 | 23,867 |
Interest income recognized, total | 214 | 573 | |
Commercial and Other [Member] | |||
Impaired Financing Receivable With No Related Allowance [Abstract] | |||
Recorded balance | 758 | 764 | 972 |
Unpaid principal balance | 789 | 764 | 972 |
Average investment in impaired loans | 923 | 897 | 2,828 |
Interest income recognized | 12 | 2 | 117 |
Impaired Financing Receivable With Related Allowance [Abstract] | |||
Recorded balance | 424 | 912 | |
Unpaid principal balance | 624 | 912 | |
Specific Allowance | 235 | 257 | |
Average investment in impaired loans | 566 | 921 | |
Interest income recognized | 20 | 30 | |
Commercial [Member] | Real Estate [Member] | |||
Impaired Financing Receivable With Related Allowance [Abstract] | |||
Recorded balance | 208 | ||
Unpaid principal balance | 947 | ||
Specific Allowance | 100 | ||
Average investment in impaired loans | 211 | ||
Interest income recognized | 12 | ||
Commercial Real Estate [Member] | Real Estate [Member] | |||
Impaired Financing Receivable With No Related Allowance [Abstract] | |||
Recorded balance | 4,933 | 3,148 | 5,341 |
Unpaid principal balance | 4,933 | 3,660 | 6,354 |
Average investment in impaired loans | 3,776 | 3,894 | 5,384 |
Interest income recognized | 161 | 160 | 248 |
Commercial Construction and Development [Member] | Real Estate [Member] | |||
Impaired Financing Receivable With No Related Allowance [Abstract] | |||
Recorded balance | 931 | 1,294 | 3,632 |
Unpaid principal balance | 1,860 | 3,218 | 7,078 |
Average investment in impaired loans | 1,323 | 5,386 | 4,884 |
Interest income recognized | 30 | 46 | 30 |
Impaired Financing Receivable With Related Allowance [Abstract] | |||
Recorded balance | 344 | 4,639 | |
Unpaid principal balance | 371 | 5,157 | |
Specific Allowance | 100 | 959 | |
Average investment in impaired loans | 344 | 5,230 | |
Interest income recognized | 78 | ||
First Mortgage [Member] | Real Estate [Member] | |||
Impaired Financing Receivable With No Related Allowance [Abstract] | |||
Recorded balance | 1,138 | 1,483 | 2,583 |
Unpaid principal balance | 1,138 | 2,071 | 3,522 |
Average investment in impaired loans | 1,142 | 2,582 | 3,755 |
Interest income recognized | 8 | 33 | 58 |
Impaired Financing Receivable With Related Allowance [Abstract] | |||
Recorded balance | 834 | ||
Unpaid principal balance | 834 | ||
Specific Allowance | 57 | ||
Average investment in impaired loans | 654 | ||
Consumer Open End and Junior Liens [Member] | Real Estate [Member] | |||
Impaired Financing Receivable With No Related Allowance [Abstract] | |||
Average investment in impaired loans | 100 | ||
Interest income recognized | $3 |
Loans_Commercial_and_Retail_Cr
Loans (Commercial and Retail Credit Exposure Credit Risk Profile by Internal Rating) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $1,022,388 | $990,207 | $990,569 |
Residential Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 517,063 | 531,272 | 502,619 |
Commercial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 319,595 | 289,540 | 288,848 |
Commercial Construction and Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 33,102 | 13,321 | |
Commercial Construction and Development [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 30,422 | 9,910 | |
Commercial Construction and Development [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,721 | 1,659 | |
Commercial Construction and Development [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 959 | 1,752 | |
Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 185,730 | 169,395 | 199,102 |
First Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 517,063 | 531,272 | |
First Mortgage [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 509,765 | 522,352 | |
First Mortgage [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 1,783 | ||
First Mortgage [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 7,298 | 7,137 | |
Consumer Open End and Junior Liens [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 71,073 | 69,354 | |
Consumer Open End and Junior Liens [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 70,299 | 68,445 | |
Consumer Open End and Junior Liens [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 774 | 909 | |
Consumer Auto [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 14,712 | 14,856 | |
Consumer Auto [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 14,704 | 14,834 | |
Consumer Auto [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 8 | 22 | |
Consumer Boat/RVs [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 94,761 | 79,419 | |
Consumer Boat/RVs [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 94,377 | 78,863 | |
Consumer Boat/RVs [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 384 | 556 | |
Consumer Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,184 | 5,766 | |
Consumer Other [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 5,125 | 5,415 | |
Consumer Other [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 59 | 351 | |
Commercial and Other [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 88,474 | 75,402 | |
Commercial and Other [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 84,746 | 73,648 | |
Commercial and Other [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 439 | 223 | |
Commercial and Other [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 2,848 | 1,000 | |
Commercial and Other [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 441 | 531 | |
Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 819,257 | 814,764 | |
Real Estate [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 198,019 | 200,817 | |
Real Estate [Member] | Commercial Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 187,436 | 190,041 | |
Real Estate [Member] | Commercial Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 3,316 | 3,308 | |
Real Estate [Member] | Commercial Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 7,267 | 7,468 | |
Real Estate [Member] | Commercial Construction and Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 33,102 | 13,321 | |
Real Estate [Member] | First Mortgage [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | 517,063 | 531,272 | |
Real Estate [Member] | Consumer Open End and Junior Liens [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans | $71,073 | $69,354 |
Loans_Activity_in_Allowance_fo
Loans (Activity in Allowance for Loan Losses by Portfolio Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||
Allowance for loan losses, Beginning of period | $13,412 | $16,038 | $16,815 | $13,412 | $16,038 | $16,815 | |||||||
Provision charged to expense | 500 | 350 | -950 | 750 | 550 | 950 | 1,350 | 1,475 | 1,850 | 1,350 | 850 | 1,300 | 6,025 |
Losses charged off | -1,882 | -4,539 | -8,002 | ||||||||||
Recoveries | 788 | 613 | 1,200 | ||||||||||
Allowance for loan losses, End of period | 13,412 | 16,038 | 13,168 | 13,412 | 16,038 | ||||||||
Allowance for loan losses, individually evaluated for impairment, Ending balance | 335 | 1,373 | 335 | 1,373 | |||||||||
Allowance for loan losses, collectively evaluated for impairment, Ending balance | 13,077 | 14,665 | 13,168 | 13,077 | 14,665 | ||||||||
Total allowance for loan losses | 13,412 | 16,038 | 13,168 | 13,412 | 16,038 | ||||||||
Loans, individually evaluated for impairment, Ending balance | 7,457 | 19,121 | 7,760 | 7,457 | 19,121 | ||||||||
Loans, collectively evaluated for impairment, Ending balance | 982,750 | 971,448 | 1,014,628 | 982,750 | 971,448 | ||||||||
Total loans receivable | 990,207 | 990,569 | 1,022,388 | 990,207 | 990,569 | ||||||||
Commercial [Member] | |||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||
Allowance for loan losses, Beginning of period | 8,148 | 9,908 | 10,602 | 8,148 | 9,908 | 10,602 | |||||||
Provision charged to expense | -1,273 | 884 | 3,213 | ||||||||||
Losses charged off | -289 | -2,713 | -4,493 | ||||||||||
Recoveries | 499 | 69 | 586 | ||||||||||
Allowance for loan losses, End of period | 8,148 | 9,908 | 7,085 | 8,148 | 9,908 | ||||||||
Allowance for loan losses, individually evaluated for impairment, Ending balance | 335 | 1,316 | 335 | 1,316 | |||||||||
Allowance for loan losses, collectively evaluated for impairment, Ending balance | 7,813 | 8,592 | 7,085 | 7,813 | 8,592 | ||||||||
Total allowance for loan losses | 8,148 | 9,908 | 7,085 | 8,148 | 9,908 | ||||||||
Loans, individually evaluated for impairment, Ending balance | 5,974 | 15,704 | 6,622 | 5,974 | 15,704 | ||||||||
Loans, collectively evaluated for impairment, Ending balance | 283,566 | 273,144 | 312,973 | 283,566 | 273,144 | ||||||||
Total loans receivable | 289,540 | 288,848 | 319,595 | 289,540 | 288,848 | ||||||||
Residential Mortgage [Member] | |||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||
Allowance for loan losses, Beginning of period | 3,124 | 3,394 | 3,444 | 3,124 | 3,394 | 3,444 | |||||||
Provision charged to expense | 888 | 343 | 1,612 | ||||||||||
Losses charged off | -572 | -886 | -1,901 | ||||||||||
Recoveries | 31 | 273 | 239 | ||||||||||
Allowance for loan losses, End of period | 3,124 | 3,394 | 3,471 | 3,124 | 3,394 | ||||||||
Allowance for loan losses, individually evaluated for impairment, Ending balance | 57 | 57 | |||||||||||
Allowance for loan losses, collectively evaluated for impairment, Ending balance | 3,124 | 3,337 | 3,471 | 3,124 | 3,337 | ||||||||
Total allowance for loan losses | 3,124 | 3,394 | 3,471 | 3,124 | 3,394 | ||||||||
Loans, individually evaluated for impairment, Ending balance | 1,483 | 3,417 | 1,138 | 1,483 | 3,417 | ||||||||
Loans, collectively evaluated for impairment, Ending balance | 529,789 | 499,202 | 515,925 | 529,789 | 499,202 | ||||||||
Total loans receivable | 531,272 | 502,619 | 517,063 | 531,272 | 502,619 | ||||||||
Consumer [Member] | |||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||
Allowance for loan losses, Beginning of period | 2,140 | 2,736 | 2,769 | 2,140 | 2,736 | 2,769 | |||||||
Provision charged to expense | 1,235 | 73 | 1,200 | ||||||||||
Losses charged off | -1,021 | -940 | -1,608 | ||||||||||
Recoveries | 258 | 271 | 375 | ||||||||||
Allowance for loan losses, End of period | 2,140 | 2,736 | 2,612 | 2,140 | 2,736 | ||||||||
Allowance for loan losses, collectively evaluated for impairment, Ending balance | 2,140 | 2,736 | 2,612 | 2,140 | 2,736 | ||||||||
Total allowance for loan losses | 2,140 | 2,736 | 2,612 | 2,140 | 2,736 | ||||||||
Loans, collectively evaluated for impairment, Ending balance | 169,395 | 199,102 | 185,730 | 169,395 | 199,102 | ||||||||
Total loans receivable | $169,395 | $199,102 | $185,730 | $169,395 | $199,102 |
Loans_Troubled_Debts_Restructu
Loans (Troubled Debts Restructured) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
contract | contract | contract | |
Consumer Auto [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 2 | 4 | |
Pre-Modification Outstanding Recorded Balance | $22 | $34 | |
Post-Modification Outstanding Recorded Balance | 22 | 33 | |
Consumer Boat/RVs [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 6 | 7 | |
Pre-Modification Outstanding Recorded Balance | 172 | 154 | |
Post-Modification Outstanding Recorded Balance | 171 | 153 | |
Consumer Other [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 1 | 4 | |
Pre-Modification Outstanding Recorded Balance | 11 | 53 | |
Post-Modification Outstanding Recorded Balance | 11 | 52 | |
Real Estate [Member] | Commercial [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 6 | 3 | 10 |
Pre-Modification Outstanding Recorded Balance | 1,229 | 1,532 | 2,239 |
Post-Modification Outstanding Recorded Balance | 1,248 | 1,601 | 2,399 |
Real Estate [Member] | Commercial Construction and Development [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 3 | ||
Pre-Modification Outstanding Recorded Balance | 1,047 | ||
Post-Modification Outstanding Recorded Balance | 1,133 | ||
Real Estate [Member] | First Mortgage [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 12 | 24 | 57 |
Pre-Modification Outstanding Recorded Balance | 1,493 | 1,706 | 3,857 |
Post-Modification Outstanding Recorded Balance | 1,139 | 1,884 | 4,098 |
Real Estate [Member] | Consumer Open End and Junior Liens [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 5 | 30 | 14 |
Pre-Modification Outstanding Recorded Balance | 58 | 1,236 | 592 |
Post-Modification Outstanding Recorded Balance | 59 | 1,249 | 590 |
Commercial [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 2 | 3 | 6 |
Pre-Modification Outstanding Recorded Balance | 193 | 1,122 | 325 |
Post-Modification Outstanding Recorded Balance | $223 | $843 | $386 |
Loans_Newly_Restructured_Loans
Loans (Newly Restructured Loans by Type) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total modification | $223 | $843 | $386 |
Commercial [Member] | Newly Restructured Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term | 223 | ||
Total modification | 223 | ||
Consumer Auto [Member] | Newly Restructured Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term | 4 | 29 | |
Combination | 18 | 4 | |
Total modification | 22 | 33 | |
Consumer Boat/RVs [Member] | Newly Restructured Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term | 135 | 153 | |
Combination | 36 | ||
Total modification | 171 | 153 | |
Consumer Other [Member] | Newly Restructured Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term | 8 | ||
Combination | 11 | 44 | |
Total modification | 11 | 52 | |
Real Estate [Member] | Commercial [Member] | Newly Restructured Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term | 701 | 1,281 | |
Combination | 547 | 1,601 | 1,118 |
Total modification | 1,248 | 1,601 | 2,399 |
Real Estate [Member] | Commercial Construction and Development [Member] | Newly Restructured Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term | 961 | ||
Combination | 172 | ||
Total modification | 1,133 | ||
Real Estate [Member] | First Mortgage [Member] | Newly Restructured Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest Only | 101 | 320 | |
Term | 36 | 189 | |
Combination | 1,038 | 1,848 | 3,589 |
Total modification | 1,139 | 1,884 | 4,098 |
Real Estate [Member] | Consumer Open End and Junior Liens [Member] | Newly Restructured Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest Only | 250 | ||
Term | 28 | 402 | 97 |
Combination | 31 | 597 | 493 |
Total modification | 59 | 1,249 | 590 |
Commercial and Other [Member] | Newly Restructured Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Term | 209 | 143 | |
Combination | 634 | 243 | |
Total modification | $843 | $386 |
Loans_Troubled_Debts_Restructu1
Loans (Troubled Debts Restructured Defaulted) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 |
loan | loan | loan | |
Commercial [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 1 | ||
Post-Modification Outstanding Recorded Balance | $518 | ||
Commercial [Member] | Troubled Debt Defaulted [Member] | Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 1 | ||
Post-Modification Outstanding Recorded Balance | 634 | ||
Commercial Real Estate [Member] | Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 1 | ||
Post-Modification Outstanding Recorded Balance | 109 | ||
First Mortgage [Member] | Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 2 | ||
Post-Modification Outstanding Recorded Balance | 61 | ||
First Mortgage [Member] | Troubled Debt Defaulted [Member] | Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 3 | 4 | |
Post-Modification Outstanding Recorded Balance | 210 | 663 | |
Consumer Open End and Junior Liens [Member] | Troubled Debt Defaulted [Member] | Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 1 | ||
Post-Modification Outstanding Recorded Balance | 23 | ||
Consumer Other [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
No. of Loans | 1 | ||
Post-Modification Outstanding Recorded Balance | $14 |
Related_Party_Transactions_Agg
Related Party Transactions (Aggregate Amount of Loans to Related Parties) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Related Party Transactions [Abstract] | |
Beginning balance | $6,784 |
Change in composition | 1,345 |
New loans, including renewals | 4,349 |
Payments, etc., including renewals | -4,511 |
Ending balance | $7,967 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Premises and Equipment | $50,989 | $52,395 |
Accumulated depreciation and amortization | -20,050 | -20,924 |
Premises and Equipment, net | 30,939 | 31,471 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and Equipment | 13,100 | 12,842 |
Buildings and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and Equipment | 25,334 | 26,005 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and Equipment | $12,555 | $13,548 |
Investment_in_Limited_Partners2
Investment in Limited Partnerships (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investment in Limited Partnerships [Abstract] | |||
Equity in losses of limited partnerships | ($385,000) | ($453,000) | ($498,000) |
Low income housing tax credits | $107,000 | $159,000 | $283,000 |
Investment_in_Limited_Partners3
Investment in Limited Partnerships (Investment in Limited Partnerships) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in limited partnerships | $1,582 | $2,092 |
Pedcor Investments 1997-XXVIII [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in limited partnerships | 566 | 849 |
Ownership, percentage | 99.00% | 99.00% |
Pedcor Investments 1987-XXXI [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in limited partnerships | 63 | |
Ownership, percentage | 49.50% | 49.50% |
Pedcor Investments 2000-XLI [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in limited partnerships | 330 | 412 |
Ownership, percentage | 50.00% | 50.00% |
Pedcor Investments 2001-LI [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in limited partnerships | 85 | 107 |
Ownership, percentage | 9.90% | 9.90% |
Pedcor Investments 2008-CIII [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Investment in limited partnerships | $601 | $661 |
Ownership, percentage | 21.50% | 21.50% |
Investment_in_Limited_Partners4
Investment in Limited Partnerships (Combined Financial Statements for Limited Partnerships Recorded Under Equity Method of Accounting) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | |||
Land and property | $30,939 | $31,471 | |
Other assets | 12,472 | 17,490 | |
Total assets | 1,424,208 | 1,391,405 | |
Liabilities | |||
Notes payable | 6,071 | 6,830 | |
Other liabilities | 14,735 | 12,861 | |
Total liabilities | 1,296,671 | 1,279,763 | |
Equity Method Investments [Member] | |||
Assets | |||
Cash | 394 | 474 | |
Land and property | 47,124 | 48,722 | |
Other assets | 2,737 | 2,258 | |
Total assets | 50,255 | 51,454 | |
Liabilities | |||
Notes payable | 42,488 | 42,376 | |
Other liabilities | 1,359 | 1,375 | |
Total liabilities | 43,847 | 43,751 | |
Partners' equity | |||
General partners | -3,671 | -3,652 | |
Limited partners | 10,079 | 11,355 | |
Total partners' equity | 6,408 | 7,703 | |
Total liabilities and partners' equity | 50,255 | 51,454 | |
Total revenue | 7,110 | 6,786 | 6,606 |
Total expenses | -7,655 | -7,472 | -6,905 |
Net loss | ($545) | ($686) | ($299) |
Core_Deposit_and_Other_Intangi2
Core Deposit and Other Intangibles (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Core Deposit and Other Intangibles [Abstract] | |||
Amortization expense | $647,000 | $782,000 | $962,000 |
Core_Deposit_and_Other_Intangi3
Core Deposit and Other Intangible (Carrying Basis of Recognized Intangible Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Disclosure Recognized Intangible [Abstract] | ||
Core deposits | $840 | $1,396 |
Other intangibles | 265 | 233 |
Core deposit and other intangibles | $1,105 | $1,629 |
Core_Deposit_and_Other_Intangi4
Core Deposit and Other Intangibles (Estimated Amortization Expense) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Core Deposit and Other Intangibles [Abstract] | ||
2015 | $499 | |
2016 | 345 | |
2017 | 189 | |
2018 | 58 | |
2019 | 14 | |
Core deposit and other intangibles | $1,105 | $1,629 |
Goodwill_Schedule_of_Goodwill_
Goodwill (Schedule of Goodwill) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Goodwill [Abstract] | |
Goodwill acquired during the year | $1,800 |
Balance as of December 31 | $1,800 |
Deposits_Schedule_of_Deposits_
Deposits (Schedule of Deposits) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ||
Noninterest-bearing demand | $154,178 | $144,195 |
Interest-bearing demand | 253,042 | 262,114 |
Savings | 124,051 | 119,380 |
Money market savings | 146,847 | 115,600 |
Certificates and other time deposits of $100,000 or more | 164,543 | 182,003 |
Other certificates | 236,659 | 289,792 |
Total deposits | $1,079,320 | $1,113,084 |
Deposits_Certificates_Includin
Deposits (Certificates, Including Other Time Deposits of Hundred Thousand or More, Maturing by Period) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Deposits [Abstract] | |
2015 | $184,267 |
2016 | 77,221 |
2017 | 55,981 |
2018 | 35,000 |
2019 | 35,060 |
Thereafter | 13,673 |
Time Deposits, Total | $401,202 |
Federal_Home_Loan_Bank_Advance2
Federal Home Loan Bank Advances (Narrative) (Details) (USD $) | Dec. 31, 2014 |
Federal Home Loan Bank Advances [Abstract] | |
Mortgage loans pledged as collateral for advances, value | $430,878,000 |
Interest rates on advances, minimum | 0.34% |
Interest rates on advances, maximum | 6.73% |
Federal_Home_Loan_Bank_Advance3
Federal Home Loan Bank Advances (Advances Maturing by Period) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank Advances [Abstract] | ||
2015 | $41,824 | |
2016 | 26 | |
2017 | 39,028 | |
2018 | 37,030 | |
2019 | 38,533 | |
Thereafter | 36,001 | |
Federal Home Loan Bank advances | $192,442 | $142,928 |
Other_Borrowings_Narrative_Det
Other Borrowings (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2009 | Dec. 31, 2008 | |
Debt Instrument [Line Items] | |||
Proceeds from long term borrowings | $7,589,000 | ||
Interest rate | 3.92% | ||
Debt instrument maturity date | 31-Dec-17 | 15-Sep-35 | |
Description of variable rate basis | three-month LIBOR | ||
Assumed debentures upon acquisition | 5,000,000 | ||
Debt Instrument Interest Rate Description | The securities bore a fixed rate of interest of 6.22% for the first five years, and the rate resets quarterly at the prevailing three-month LIBOR rate plus 170 basis points | ||
Debt instrument, frequency of periodic payment | principal and interest payments made quarterly | ||
Long term debt outstanding amount | $4,103,000 | ||
Forward interest rate swap fixed rate | 5.15% | ||
London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.80% | ||
For the first Five Years | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.22% | ||
After Five Years | 3-Month LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.70% |
Other_Borrowings_Components_of
Other Borrowings (Components of Other Borrowings) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Borrowings [Abstract] | ||
Note payable | $6,071 | $6,830 |
Subordinated debentures | 4,103 | 4,060 |
Other borrowings | $10,174 | $10,890 |
Other_Borrowings_Maturity_of_N
Other Borrowings (Maturity of Notes Payable) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Borrowings [Abstract] | ||
2015 | $759 | |
2016 | 759 | |
2017 | 4,553 | |
Total note payable | $6,071 | $6,830 |
Loan_Servicing_Narrative_Detai
Loan Servicing (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Loan Servicing [Abstract] | |||
Servicing fees collected | $832,000 | $896,000 | $986,000 |
Loan_Servicing_Unpaid_Principa
Loan Servicing (Unpaid Principal Balances of Loans Serviced) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principle balance of loans serviced | $326,246 | $336,963 |
Freddie Mac [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principle balance of loans serviced | 295,589 | 303,313 |
Fannie Mae [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principle balance of loans serviced | 16,024 | 20,881 |
Federal Home Loan Bank [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principle balance of loans serviced | 12,963 | 10,958 |
Other investors [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principle balance of loans serviced | $1,670 | $1,811 |
Loan_Servicing_MortgageServici
Loan Servicing (Mortgage-Servicing Rights) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loan Servicing [Abstract] | ||||
Balances, January 1 | $1,858 | $2,396 | $3,101 | |
Servicing rights capitalized | 278 | 464 | 294 | |
Amortization of servicing rights | -719 | -1,002 | -999 | |
Ending balance | 1,417 | 1,858 | 2,396 | |
Valuation allowance | -665 | -475 | ||
Servicing asset, net | $1,417 | $1,858 | $1,731 |
Loan_Servicing_Fair_Value_of_S
Loan Servicing (Fair Value of Servicing Rights) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Loan Servicing [Abstract] | ||||
Mortgage-servicing rights, beginning balance | $2,048 | $2,106 | $1,731 | $2,626 |
Mortgage-servicing rights, ending balance | $2,048 | $2,106 | $1,731 | $2,626 |
Loan_Servicing_Activity_in_Val
Loan Servicing (Activity in Valuation Allowance for Mortgage Servicing Right) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loan Servicing [Abstract] | |||
Balance, beginning of year | $665 | $475 | |
Additions | 190 | ||
Reductions | -665 | ||
Balance, end of year | $665 |
Income_Tax_Narrative_Details
Income Tax - (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax [Abstract] | |
Unused business income tax credits | $4,112,000 |
AMT credit carryover | 1,351,000 |
ATM credit carryforward, expiration period | unlimited |
Unused business income tax expiration year | 31-Dec-27 |
State net operating loss | 28,635,000 |
State net operating loss expiration year | 31-Dec-22 |
Recognized deferred income tax liability | 14,743,000 |
Unrecorded deferred income tax liability | $5,013,000 |
Income_Tax_Provision_For_Incom
Income Tax (Provision For Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Currently payable | |||
Federal | $2,930 | $2,272 | $1,745 |
State | -261 | -677 | 305 |
Deferred | |||
Federal | 433 | 1,372 | 887 |
State | 481 | 841 | -305 |
Income Tax Expense (Benefit), Total | $3,583 | $3,808 | $2,632 |
Income_Tax_Reconciliation_of_I
Income Tax (Reconciliation of Income Tax Expense at Federal Statutory Rate to Actual Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of federal statutory to actual tax expense | |||
Federal statutory income tax at 34% | $4,897 | $4,423 | $3,359 |
Other than temporary impairment | -615 | ||
State taxes | 145 | 109 | |
Low income housing credits | -107 | -159 | -283 |
Tax-exempt income | -818 | -725 | -587 |
Other | 81 | 160 | 143 |
Income Tax Expense (Benefit), Total | $3,583 | $3,808 | $2,632 |
Effective tax rate | 24.88% | 29.28% | 26.64% |
Federal statutory income tax rate | 34.00% |
Income_Tax_Components_of_Defer
Income Tax (Components of Deferred Assets) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | |||
Unrealized loss on securities available for sale | $1,762 | ||
Allowance for loan losses | 5,344 | 5,439 | |
Deferred compensation | 3,191 | 2,970 | |
Business tax and AMT credit carryovers | 5,463 | 7,140 | |
Capital loss carryover | 144 | 548 | |
Net operating loss carryover | 2,148 | 2,684 | |
Goodwill impairment | 2,611 | 3,032 | |
Purchase accounting adjustments | 1,120 | 1,161 | |
Other | 1,306 | 920 | |
Total assets | 21,327 | 25,656 | |
Liabilities | |||
Unrealized gain on securities available for sale | -1,375 | ||
Depreciation and amortization | -532 | -833 | |
FHLB stock | -447 | -541 | |
State income tax | -757 | -1,011 | |
Loan fees | -245 | -770 | |
Investments in limited partnerships | -2,584 | -2,596 | |
Mortgage servicing rights | -501 | -732 | |
Other | -361 | -336 | |
Total liabilities | -6,802 | -6,819 | |
Valuation Allowance | |||
Beginning balance | -1,835 | -1,835 | |
Decrease during period | 615 | ||
Ending balance | -1,220 | -1,835 | |
Net deferred tax asset | $13,305 | $17,002 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ||
Net unrealized gain (loss) on securities available-for-sale | $4,933 | ($2,029) |
Net unrealized loss on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income | -917 | -2,945 |
Net unrealized loss on derivative used for cash flow hedges | -109 | -259 |
Net unrealized loss relating to defined benefit plan liability | -109 | 100 |
Accumulated other comprehensive income loss before tax | 3,798 | -5,133 |
Tax benefit | 1,420 | -1,718 |
Net of tax amount | $2,378 | ($3,415) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income (Loss) Alternate) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related income tax expense | ($3,583) | ($3,808) | ($2,632) | ||||||||||||
Net Income Available to Common Shareholders | 3,604 | 2,694 | 2,557 | 1,963 | 2,294 | 2,201 | 1,834 | 1,614 | 1,641 | 1,811 | 1,282 | 1,066 | 10,818 | 7,943 | 5,800 |
Reclassification out of AOCI [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||||||||||||||
Other Income | 313 | 835 | 2,831 | ||||||||||||
Related income tax expense | -106 | -284 | -963 | ||||||||||||
Net Income Available to Common Shareholders | $207 | $551 | $1,868 |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Contingencies And Commitments [Line Items] | ||
Mortgage loans in the process of origination | 817,000 | $1,301,000 |
Mortgage loans held for sale | 6,140,000 | $1,888,000 |
Minimum [Member] | ||
Contingencies And Commitments [Line Items] | ||
Mortgage loans in the process of origination, funding period | 60 days | |
Maximum [Member] | ||
Contingencies And Commitments [Line Items] | ||
Mortgage loans in the process of origination, funding period | 90 days |
Commitments_and_Contingent_Lia3
Commitments and Contingent Liabilities (Financial Instruments Whose Contract Amount Represents Credit Risk) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments and Contingent Liabilities [Abstract] | ||
Loan commitments | $200,189 | $185,702 |
Standby letters of credit | $2,288 | $2,909 |
Regulatory_Capital_Actual_Capi
Regulatory Capital (Actual Capital Amounts and Ratios) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
MutualFirst Consolidated [Member] | ||||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||||
Leverage Capital Level, Actual Capital Levels Amount | $120,568,000 | [1] | $109,771,000 | [2] |
Total Risk-Based Capital Level, Actual Capital Levels Amount | 132,847,000 | [3] | 121,891,000 | [3] |
Tier 1 Risk-Based Capital Level, Actual Capital Levels Amount | 120,568,000 | [4] | 109,771,000 | [5] |
Leverage Capital Level, Actual Capital Levels Ratio | 8.50% | [1] | 7.90% | [2] |
Total Risk-Based Capital Level, Actual Capital Levels Ratio | 13.50% | [3] | 12.60% | [3] |
Tier 1 Risk-Based Capital Level, Actual Capital Levels Ratio | 12.30% | [4] | 11.30% | [5] |
Leverage Capital Level, Minimum Regulatory Capital Ratios Amount | 56,687,000 | [1] | 55,652,000 | [2] |
Total Risk-Based Capital Level, Minimum Regulatory Capital Ratios Amount | 78,537,000 | [3] | 77,507,000 | [3] |
Tier 1 Risk-Based Capital Level, Minimum Regulatory Capital Ratios Amount | 39,269,000 | [4] | 38,754,000 | [5] |
Leverage Capital Level, Minimum Regulatory Capital Ratios | 4.00% | [1] | 4.00% | [2] |
Total Risk-Based Capital Level, Minimum Regulatory Capital Ratios | 8.00% | [3] | 8.00% | [3] |
Tier 1 Risk-Based Capital Level, Minimum Regulatory Capital Ratios | 4.00% | [4] | 4.00% | [5] |
Total Risk-Based Capital Level, Minimum Required To be Considered Well-Capitalized Amount | 98,171,000 | [3] | 96,884,000 | [3] |
Tier 1 Risk-Based Capital Level, Minimum Required To be Considered Well-Capitalized Amount | 58,903,000 | [4] | 58,131,000 | [5] |
Total Risk-Based Capital Level, Minimum Required To be Considered Well-Capitalized Ratio | 10.00% | [3] | 10.00% | [3] |
Tier 1 Risk-Based Capital Level, Minimum Required To be Considered Well-Capitalized Ratio | 6.00% | [4] | 6.00% | [5] |
Average Total Regulatory Capital Assets | 1,400,000,000 | 1,400,000,000 | ||
Risk-Weighted Regulatory Capital Assets | 981,700,000 | 968,800,000 | ||
MutualBank [Member] | ||||
Compliance with Regulatory Capital Requirements for Mortgage Companies [Line Items] | ||||
Leverage Capital Level, Actual Capital Levels Amount | 124,083,000 | [1] | 115,174,000 | [2] |
Total Risk-Based Capital Level, Actual Capital Levels Amount | 136,362,000 | [3] | 127,294,000 | [3] |
Tier 1 Risk-Based Capital Level, Actual Capital Levels Amount | 124,083,000 | [4] | 115,174,000 | [5] |
Leverage Capital Level, Actual Capital Levels Ratio | 8.80% | [1] | 8.30% | [2] |
Total Risk-Based Capital Level, Actual Capital Levels Ratio | 13.90% | [3] | 13.20% | [3] |
Tier 1 Risk-Based Capital Level, Actual Capital Levels Ratio | 12.60% | [4] | 11.90% | [5] |
Leverage Capital Level, Minimum Regulatory Capital Ratios Amount | 56,610,000 | [1] | 55,621,000 | [2] |
Total Risk-Based Capital Level, Minimum Regulatory Capital Ratios Amount | 78,515,000 | [3] | 77,466,000 | [3] |
Tier 1 Risk-Based Capital Level, Minimum Regulatory Capital Ratios Amount | 39,257,000 | [4] | 38,733,000 | [5] |
Leverage Capital Level, Minimum Regulatory Capital Ratios | 4.00% | [1] | 4.00% | [2] |
Total Risk-Based Capital Level, Minimum Regulatory Capital Ratios | 8.00% | [3] | 8.00% | [3] |
Tier 1 Risk-Based Capital Level, Minimum Regulatory Capital Ratios | 4.00% | [4] | 4.00% | [5] |
Leverage Capital Level, Minimum Required To be Considered Well-Capitalized Amount | 70,763,000 | [1] | 69,526,000 | [2] |
Total Risk-Based Capital Level, Minimum Required To be Considered Well-Capitalized Amount | 98,143,000 | [3] | 96,832,000 | [3] |
Tier 1 Risk-Based Capital Level, Minimum Required To be Considered Well-Capitalized Amount | 58,886,000 | [4] | 58,099,000 | [5] |
Leverage Capital Level, Minimum Required To be Considered Well-Capitalized Ratio | 5.00% | [1] | 5.00% | [2] |
Total Risk-Based Capital Level, Minimum Required To be Considered Well-Capitalized Ratio | 10.00% | [3] | 10.00% | [3] |
Tier 1 Risk-Based Capital Level, Minimum Required To be Considered Well-Capitalized Ratio | 6.00% | [4] | 6.00% | [5] |
Average Total Regulatory Capital Assets | 1,400,000,000 | 1,400,000,000 | ||
Risk-Weighted Regulatory Capital Assets | $981,400,000 | $968,300,000 | ||
[1] | (1) Tier 1 Capital to Average Total Assets of $1.4 billion for the Bank and $1.4 billion for the Company at December 31, 2014. | |||
[2] | (1) Tier 1 Capital to Average Total Assets of $1.4 billion for the Bank and $1.4 billion for the Company at December 31, 2013. | |||
[3] | (3) Total Capital to Risk-Weighted Assets. | |||
[4] | (2) Tier 1 Capital to Risk-Weighted Assets of $981.4 million for the Bank and $981.7 million for the Company at December 31, 2014. | |||
[5] | (2) Tier 1 Capital to Risk-Weighted Assets of $968.3 million for the Bank and $968.8 million for the Company at December 31, 2013. |
Employee_Benefits_Narrative_De
Employee Benefits (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of unearned ESOP shares | 0 | 0 | 31,785 |
Employee stock owner ship plan expense | $0 | $474,000 | $328,000 |
MutualFirst Financial, Inc. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee stock owner ship plan expense | 474,000 | 329,000 | |
Retirement Savings 401(k) Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer 401(k) matching contribution to employee, maximum percentage | 5.00% | ||
Defined contribution plan, contribution | 739,000 | 552,000 | 537,000 |
Retirement Savings 401(k) Plan [Member] | Up to 4% of participant contributions [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of participant contributions | 100.00% | ||
Percentage employer matching contribution | 4.00% | ||
Retirement Savings 401(k) Plan [Member] | 5%-6% of participant contributions [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of participant contributions | 50.00% | ||
Retirement Savings 401(k) Plan [Member] | 5%-6% of participant contributions [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage employer matching contribution | 5.00% | ||
Retirement Savings 401(k) Plan [Member] | 5%-6% of participant contributions [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage employer matching contribution | 6.00% | ||
Supplemental Retirement Plan and Deferred Compensation Arrangements [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred compensation arrangement with individual, compensation expense | 730,000 | 748,000 | 675,000 |
ESOP [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unearned employee stock ownership plan (ESOP) shares, fair value | $363,000 |
Employee_Benefits_Information_
Employee Benefits (Information on Employee Stock Ownership Plan Shares) (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Benefits [Abstract] | |||
Allocated shares | 426,877 | 414,896 | 397,176 |
Suspense shares | 0 | 0 | 31,785 |
Committed-to-be released shares | 31,785 | 31,783 |
Stock_Option_Plans_Narrative_D
Stock Option Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | |||
Stock Option Plans [Abstract] | |||
Shares authorized to grant options | 934,702 | ||
Stock option plans | 2 | ||
Options exercised | 118,823 | 61,677 | 67,916 |
Weighted-average grant-date fair value of options granted | $2.01 | ||
Authorized but unissued shares | 934,702 | ||
Shares remaining to be granted under plan | 101,642 | ||
Proceeds from stock options exercised | $1,300,000 | $538,000 | $551,000 |
Options exercised during the period, intrinsic value | $1,000,000 | $377,000 | $287,000 |
Options granted | 58,000 |
Stock_Option_Plans_Summary_of_
Stock Option Plans (Summary of Status and Changes in Stock Option Plan) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Shares | |||
Options outstanding, Beginning balance | 687,043 | ||
Options granted | 58,000 | ||
Options exercised | -118,823 | -61,677 | -67,916 |
Options outstanding, Ending balance | 687,043 | ||
Options exercisable at year end | 568,220 | ||
Weighted Average Exercise Price | |||
Options Outstanding, Weighted Average Exercise Price, Beginning balance | $10.70 | ||
Options Exercised, Weighted Average Exercise Price | $11.34 | ||
Options Outstanding, Weighted Average Exercise Price, Ending balance | $10.57 | $10.70 | |
Weighted- Average Remaining Contractual Life (in years) | |||
Options Outstanding, Weighted-Average Remaining Contractual Life | 6 years 6 months | ||
Aggregate Intrinsic Value | |||
Options Outstanding, Aggregate Intrinsic Value | $6,570,000 |
Stock_Option_Plans_Assumptions
Stock Option Plans (Assumptions Used to Determine Fair Value of Options Granted) (Details) | 12 Months Ended |
Dec. 31, 2012 | |
Stock Option Plans [Abstract] | |
Risk-free interest rate | 1.70% |
Expected option life | 10 years 0 months |
Dividend yield | 3.45% |
Expected volatility of stock price | 31.50% |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (Stock options [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from earnings per share computation | 44,161 | 75,831 | 246,815 |
Earnings_Per_Share_Schedule_of
Earnings Per Share (Schedule of Earnings per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic Earnings Per Share | |||||||||||||||
Net income | $3,604 | $2,694 | $2,557 | $1,963 | $2,640 | $2,472 | $2,112 | $1,976 | $2,003 | $2,173 | $1,644 | $1,426 | $10,818 | $9,200 | $7,246 |
Dividends and accretion on preferred stock | -1,257 | -1,446 | |||||||||||||
Income available to common stockholders | 3,604 | 2,694 | 2,557 | 1,963 | 2,294 | 2,201 | 1,834 | 1,614 | 1,641 | 1,811 | 1,282 | 1,066 | 10,818 | 7,943 | 5,800 |
Diluted Earnings Per Share | |||||||||||||||
Income available to common stockholders and assumed conversions | $10,818 | $7,943 | $5,800 | ||||||||||||
Weighted-Average Shares number of common shares, basic | 7,160,700 | 7,076,877 | 6,951,727 | ||||||||||||
Weighted-Average Shares, effect of dilutive securities stock option | 231,131 | 180,941 | 103,957 | ||||||||||||
Weighted-Average Shares income available to common stockholders and assumed conversions, diluted | 7,391,831 | 7,257,818 | 7,055,684 | ||||||||||||
Earnings per share, basic | $0.49 | $0.38 | $0.36 | $0.28 | $0.32 | $0.31 | $0.26 | $0.23 | $0.23 | $0.26 | $0.18 | $0.16 | $1.51 | $1.12 | $0.83 |
Earnings per share, diluted | $0.48 | $0.36 | $0.35 | $0.27 | $0.32 | $0.30 | $0.25 | $0.22 | $0.23 | $0.26 | $0.18 | $0.15 | $1.46 | $1.09 | $0.82 |
Fair_Values_of_Financial_Instr2
Fair Values of Financial Instruments (Fair Value Measurement of Assets Measured at Fair Value on Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $260,806 | $264,348 |
Mortgage-backed securities, Government sponsored agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 113,290 | 103,517 |
Collateralized Mortgage Obligations, Government Sponsored Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 97,759 | 107,578 |
Federal Aagencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 4 | 4,774 |
Municipals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 29,252 | 27,338 |
Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 20,501 | 21,141 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ||
Fair Value, Inputs, Level 1 | Mortgage-backed securities, Government sponsored agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ||
Fair Value, Inputs, Level 1 | Collateralized Mortgage Obligations, Government Sponsored Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ||
Fair Value, Inputs, Level 1 | Federal Aagencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ||
Fair Value, Inputs, Level 1 | Municipals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ||
Fair Value, Inputs, Level 1 | Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ||
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 258,284 | 261,012 |
Fair Value, Inputs, Level 2 | Mortgage-backed securities, Government sponsored agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 113,290 | 103,517 |
Fair Value, Inputs, Level 2 | Collateralized Mortgage Obligations, Government Sponsored Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 97,759 | 107,578 |
Fair Value, Inputs, Level 2 | Federal Aagencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 4 | 4,774 |
Fair Value, Inputs, Level 2 | Municipals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 29,252 | 27,338 |
Fair Value, Inputs, Level 2 | Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 17,979 | 17,805 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,522 | 3,336 |
Fair Value, Inputs, Level 3 | Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $2,522 | $3,336 |
Fair_Values_of_Financial_Instr3
Fair Values of Financial Instruments (Reconciliation of Recurring Fair Value Measurements Recognized in Balance Sheet using Significant Unobservable (Level Three) Inputs) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Values of Financial Instruments [Abstract] | |||
Beginning balance | $3,336 | $2,475 | $2,454 |
Total realized and unrealized gains (losses) | |||
Included in net income | -68 | ||
Included in other comprehensive income (loss) | 2,098 | 897 | 30 |
Sales | -2,826 | ||
Settlements | -18 | -36 | -9 |
Ending balance | 2,522 | 3,336 | 2,475 |
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date | $0 | $0 | $0 |
Fair_Values_of_Financial_Instr4
Fair Values of Financial Instruments (Fair Value Measurement of Assets Measured at Fair Value on Nonrecurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | $925 | |
Other Real Estate Owned/Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 1,280 | 1,677 |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 2,106 | |
Fair Value, Inputs, Level 1 | Other Real Estate Owned/Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | ||
Fair Value, Inputs, Level 2 | Other Real Estate Owned/Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | ||
Fair Value, Inputs, Level 3 | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 925 | |
Fair Value, Inputs, Level 3 | Other Real Estate Owned/Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | 1,280 | 1,677 |
Fair Value, Inputs, Level 3 | Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on nonrecurring basis | $2,106 |
Fair_Values_of_Financial_Instr5
Fair Values of Financial Instruments (Quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pooled Trust Preferred Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $2,522 | $3,336 |
Valuation Technique | Discounted cash flow | Discounted cash flow |
Constant prepayment rate | 2.00% | 2.00% |
Cumulative projected prepayments | 40.00% | 40.00% |
Pooled Trust Preferred Securities [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 8.00% | 10.00% |
Probability of default | 1.70% | 1.50% |
Projected cures given deferral | 0.00% | 0.00% |
Loss severity | 34.20% | 46.90% |
Pooled Trust Preferred Securities [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 17.00% | |
Probability of default | 1.80% | 2.70% |
Projected cures given deferral | 15.00% | 15.00% |
Loss severity | 39.80% | 73.70% |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 925 | |
Valuation Technique | Third party valuations | |
Impaired Loans [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount to reflect realizable value less estimated selling costs | 7.30% | |
Impaired Loans [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount to reflect realizable value less estimated selling costs | 78.30% | |
Other Real Estate Owned/Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,280 | 1,677 |
Valuation Technique | Third party valuations | Third party valuations |
Other Real Estate Owned/Foreclosed Real Estate [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount to reflect realizable value less estimated selling costs | 24.40% | 0.00% |
Other Real Estate Owned/Foreclosed Real Estate [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount to reflect realizable value less estimated selling costs | 36.70% | 25.00% |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $2,106 | |
Valuation Technique | Third party valuations | |
Discount rate | 10.00% | |
Servicing fee | 0.25% | |
Mortgage Servicing Rights [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate | 105.00% | |
Mortgage Servicing Rights [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Constant prepayment rate | 700.00% |
Fair_Values_of_Financial_Instr6
Fair Values of Financial Instruments (Estimated Fair Values of Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets, carrying amount | ||||
Cash and cash equivalents | $29,575 | $25,285 | $32,778 | $55,223 |
FHLB stock, carrying amount | 11,964 | 14,391 | ||
Interest receivable, carrying amount | 3,730 | 3,775 | ||
Loans held for sale, carrying amount | 6,140 | 1,888 | ||
Loans net, carrying amount | 1,003,518 | 965,966 | ||
Liabilities, carrying amount | ||||
Deposits, carrying amount | 1,079,320 | 1,113,084 | ||
FHLB advances, carrying amount | 192,442 | 142,928 | ||
Other borrowings, carrying amount | 10,174 | 10,890 | ||
Interest payable, carrying amount | 223 | 157 | ||
Assets | ||||
Cash and cash equivalents | 29,575 | 25,285 | ||
FHLB stock, fair value | 11,964 | 14,391 | ||
Interest receivable, fair value | 3,730 | 3,775 | ||
Loans held for sale, fair value | 6,220 | 1,905 | ||
Loans, fair value | 1,006,233 | 935,414 | ||
Liabilities, fair value | ||||
Deposits, fair value | 1,050,295 | 1,068,422 | ||
FHLB advances, fair value | 191,995 | 141,526 | ||
Other borrowings, fair value | 10,283 | 11,148 | ||
Interest payable, fair value | 223 | 157 | ||
Fair Value, Inputs, Level 1 | ||||
Assets | ||||
Cash and cash equivalents | 29,575 | 25,285 | ||
Liabilities, fair value | ||||
Deposits, fair value | 648,314 | 593,457 | ||
Fair Value, Inputs, Level 2 | ||||
Assets | ||||
FHLB stock, fair value | 11,964 | 14,391 | ||
Interest receivable, fair value | 3,730 | 3,775 | ||
Loans held for sale, fair value | 6,220 | 1,905 | ||
Liabilities, fair value | ||||
FHLB advances, fair value | 191,995 | 141,526 | ||
Other borrowings, fair value | 10,283 | 11,148 | ||
Interest payable, fair value | 223 | 157 | ||
Fair Value, Inputs, Level 3 | ||||
Assets | ||||
Loans, fair value | 1,006,233 | 935,414 | ||
Liabilities, fair value | ||||
Deposits, fair value | 401,981 | 474,965 | ||
MutualFirst Financial, Inc. [Member] | ||||
Assets, carrying amount | ||||
Cash and cash equivalents | 2,383 | 1,070 | 2,954 | 1,675 |
Liabilities, carrying amount | ||||
Other borrowings, carrying amount | $10,174 | $10,890 |
Condensed_Financial_Informatio2
Condensed Financial Information (Parent Company Only) (Condensed Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Cash on deposit with Bank | $22,100 | $17,272 | ||
Cash on deposit with others | 7,475 | 8,013 | ||
Investment in common stock of Bank | 1,582 | 2,092 | ||
Deferred and current income tax | 13,305 | 17,002 | ||
Other Assets | 12,472 | 17,490 | ||
Total assets | 1,424,208 | 1,391,405 | ||
Liabilities | ||||
Other borrowings | 10,174 | 10,890 | ||
Other liabilities | 14,735 | 12,861 | ||
Total liabilities | 1,296,671 | 1,279,763 | ||
Stockholders' Equity | 127,537 | 111,642 | 139,493 | 132,627 |
Total liabilities and stockholders' equity | 1,424,208 | 1,391,405 | ||
MutualFirst Financial, Inc. [Member] | ||||
Assets | ||||
Cash on deposit with Bank | 1,726 | 412 | ||
Cash on deposit with others | 657 | 658 | ||
Total cash | 2,383 | 1,070 | ||
Investment in common stock of Bank | 135,264 | 121,362 | ||
Deferred and current income tax | 149 | 359 | ||
Other Assets | 10 | |||
Total assets | 137,796 | 122,801 | ||
Liabilities | ||||
Other borrowings | 10,174 | 10,890 | ||
Other liabilities | 85 | 269 | ||
Total liabilities | 10,259 | 11,159 | ||
Stockholders' Equity | 127,537 | 111,642 | ||
Total liabilities and stockholders' equity | $137,796 | $122,801 |
Condensed_Financial_Informatio3
Condensed Financial Information (Parent Company Only) (Condensed Statements of Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income | |||||||||||||||
Interest income from Bank | $17 | $29 | $52 | ||||||||||||
Total interest and dividend income | 12,893 | 12,803 | 12,744 | 12,738 | 12,848 | 13,041 | 12,877 | 12,901 | 13,431 | 13,908 | 14,100 | 13,909 | 51,178 | 51,667 | 55,348 |
Expenses | 2,255 | 2,163 | 2,186 | 2,319 | 2,644 | 2,801 | 2,857 | 2,922 | 3,320 | 3,593 | 3,750 | 4,041 | 8,923 | 11,224 | 14,704 |
Income tax benefit | 3,583 | 3,808 | 2,632 | ||||||||||||
Net Income | 3,604 | 2,694 | 2,557 | 1,963 | 2,640 | 2,472 | 2,112 | 1,976 | 2,003 | 2,173 | 1,644 | 1,426 | 10,818 | 9,200 | 7,246 |
Preferred stock dividends and accretion | 1,257 | 1,446 | |||||||||||||
Net Income Available to Common Shareholders | 3,604 | 2,694 | 2,557 | 1,963 | 2,294 | 2,201 | 1,834 | 1,614 | 1,641 | 1,811 | 1,282 | 1,066 | 10,818 | 7,943 | 5,800 |
MutualFirst Financial, Inc. [Member] | |||||||||||||||
Income | |||||||||||||||
Interest income from Bank | 1 | 4 | 12 | ||||||||||||
Dividends from Bank | 3,500 | 30,692 | 5,200 | ||||||||||||
Other income | 17 | ||||||||||||||
Total interest and dividend income | 3,501 | 30,696 | 5,229 | ||||||||||||
Expenses | 994 | 1,036 | 1,520 | ||||||||||||
Income before income tax and equity in undistributed income of the Bank | 2,507 | 29,660 | 3,709 | ||||||||||||
Income tax benefit | -337 | -342 | -451 | ||||||||||||
Income before equity in undistributed income (distributions in excess of income) of the Bank | 2,844 | 30,002 | 4,160 | ||||||||||||
Equity in undistributed income (distributions in excess of income) of the Bank | 7,974 | -20,802 | 3,086 | ||||||||||||
Net Income | 10,818 | 9,200 | 7,246 | ||||||||||||
Preferred stock dividends and accretion | 1,257 | 1,446 | |||||||||||||
Net Income Available to Common Shareholders | $10,818 | $7,943 | $5,800 |
Condensed_Financial_Informatio4
Condensed Financial Information (Parent Company Only) (Condensed Statements of Comprehensive Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net income | $3,604 | $2,694 | $2,557 | $1,963 | $2,640 | $2,472 | $2,112 | $1,976 | $2,003 | $2,173 | $1,644 | $1,426 | $10,818 | $9,200 | $7,246 |
Other comprehensive income: | |||||||||||||||
Net unrealized holding gain (loss) on securities available-for-sale | 8,921 | -9,810 | 4,782 | ||||||||||||
Net unrealized gain (loss) on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income | 381 | 800 | 43 | ||||||||||||
Less: Reclassification adjustment for realized gains included in net included in net income | -313 | -835 | -2,831 | ||||||||||||
Net unrealized gain on derivative used for cash flow hedges | 150 | 157 | 56 | ||||||||||||
Net unrealized gain (loss) relating to defined benefit plan | -209 | 149 | 399 | ||||||||||||
Other Comprehensive Income (Loss), before Tax | 8,930 | -9,539 | 2,449 | ||||||||||||
Income tax (expense) benefit related to other comprehensive income | -3,137 | 3,321 | -849 | ||||||||||||
Other comprehensive income (loss) | 5,793 | -6,218 | 1,600 | ||||||||||||
Comprehensive income | 16,611 | 2,982 | 8,846 | ||||||||||||
MutualFirst Financial, Inc. [Member] | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Net income | 10,818 | 9,200 | 7,246 | ||||||||||||
Other comprehensive income: | |||||||||||||||
Net unrealized holding gain (loss) on securities available-for-sale | 8,921 | -9,810 | 4,782 | ||||||||||||
Net unrealized gain (loss) on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income | 381 | 800 | 43 | ||||||||||||
Less: Reclassification adjustment for realized gains included in net included in net income | -313 | -835 | -2,831 | ||||||||||||
Net unrealized gain on derivative used for cash flow hedges | 150 | 157 | 56 | ||||||||||||
Net unrealized gain (loss) relating to defined benefit plan | -209 | 149 | 399 | ||||||||||||
Other Comprehensive Income (Loss), before Tax | 8,930 | -9,539 | 2,449 | ||||||||||||
Income tax (expense) benefit related to other comprehensive income | -3,137 | 3,321 | -849 | ||||||||||||
Other comprehensive income (loss) | 5,793 | -6,218 | 1,600 | ||||||||||||
Comprehensive income | $16,611 | $2,982 | $8,846 |
Condensed_Financial_Informatio5
Condensed Financial Information (Parent Company Only) (Condensed Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Activities | |||
Net income | $10,818,000 | $9,200,000 | $7,246,000 |
Item not requiring cash | |||
ESOP shares earned | 0 | 474,000 | 328,000 |
Deferred income tax | 914,000 | 2,213,000 | 582,000 |
Other | 702,000 | 558,000 | 524,000 |
Net cash provided by operating activities | 12,010,000 | 21,619,000 | 20,461,000 |
Investing Activities | |||
Net cash provided by (used in) investing activities | -21,760,000 | 5,626,000 | -28,430,000 |
Financing Activities | |||
Repayment of other borrowings | -759,000 | -759,000 | -847,000 |
Cash dividends | -2,297,000 | -2,953,000 | -3,113,000 |
Proceeds from stock options exercised | 1,347,000 | 570,000 | 551,000 |
Net cash provided by (used in) financing activities | 14,040,000 | -34,738,000 | -14,476,000 |
Net Change in Cash and Cash Equivalents | 4,290,000 | -7,493,000 | -22,445,000 |
Cash and Cash Equivalents, Beginning of Period | 25,285,000 | 32,778,000 | 55,223,000 |
Cash and Cash Equivalents, End of Period | 29,575,000 | 25,285,000 | 32,778,000 |
MutualFirst Financial, Inc. [Member] | |||
Operating Activities | |||
Net income | 10,818,000 | 9,200,000 | 7,246,000 |
Item not requiring cash | |||
ESOP shares earned | 474,000 | 329,000 | |
Deferred income tax | 159,000 | 71,000 | -263,000 |
(Equity in undistributed income) distributions in excess of income of subsidiary | -7,974,000 | 20,802,000 | -3,086,000 |
Other | 19,000 | -365,000 | 462,000 |
Net cash provided by operating activities | 3,022,000 | 30,182,000 | 4,688,000 |
Financing Activities | |||
Repayment of other borrowings | -759,000 | -759,000 | -847,000 |
Stock repurchased | -28,924,000 | ||
Cash dividends | -2,297,000 | -2,953,000 | -3,113,000 |
Proceeds from stock options exercised | 1,347,000 | 570,000 | 551,000 |
Net cash provided by (used in) financing activities | -1,709,000 | -32,066,000 | -3,409,000 |
Net Change in Cash and Cash Equivalents | 1,313,000 | -1,884,000 | 1,279,000 |
Cash and Cash Equivalents, Beginning of Period | 1,070,000 | 2,954,000 | 1,675,000 |
Cash and Cash Equivalents, End of Period | $2,383,000 | $1,070,000 | $2,954,000 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Schedule of Quarterly Financial Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Results of Operations [Abstract] | |||||||||||||||
Interest Income | $12,893 | $12,803 | $12,744 | $12,738 | $12,848 | $13,041 | $12,877 | $12,901 | $13,431 | $13,908 | $14,100 | $13,909 | $51,178 | $51,667 | $55,348 |
Interest Expense | 2,255 | 2,163 | 2,186 | 2,319 | 2,644 | 2,801 | 2,857 | 2,922 | 3,320 | 3,593 | 3,750 | 4,041 | 8,923 | 11,224 | 14,704 |
Net Interest Income | 10,638 | 10,640 | 10,558 | 10,419 | 10,204 | 10,240 | 10,020 | 9,979 | 10,111 | 10,315 | 10,350 | 9,868 | 42,255 | 40,443 | 40,644 |
Provision for loan losses | 500 | 350 | -950 | 750 | 550 | 950 | 1,350 | 1,475 | 1,850 | 1,350 | 850 | 1,300 | 6,025 | ||
Net Income Loss | 3,604 | 2,694 | 2,557 | 1,963 | 2,640 | 2,472 | 2,112 | 1,976 | 2,003 | 2,173 | 1,644 | 1,426 | 10,818 | 9,200 | 7,246 |
Net Income Available to Common Shareholders | $3,604 | $2,694 | $2,557 | $1,963 | $2,294 | $2,201 | $1,834 | $1,614 | $1,641 | $1,811 | $1,282 | $1,066 | $10,818 | $7,943 | $5,800 |
Earnings per share, basic | $0.49 | $0.38 | $0.36 | $0.28 | $0.32 | $0.31 | $0.26 | $0.23 | $0.23 | $0.26 | $0.18 | $0.16 | $1.51 | $1.12 | $0.83 |
Earnings per share, diluted | $0.48 | $0.36 | $0.35 | $0.27 | $0.32 | $0.30 | $0.25 | $0.22 | $0.23 | $0.26 | $0.18 | $0.15 | $1.46 | $1.09 | $0.82 |