Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 06, 2016 | |
Document Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | mfsf | |
Entity Registrant Name | MUTUALFIRST FINANCIAL INC | |
Entity Central Index Key | 1,094,810 | |
Current Fiscal Year End Date | --12-31 | |
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 | 7,467,543 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 8,791 | $ 8,610 |
Interest-bearing demand deposits | 21,921 | 12,305 |
Cash and cash equivalents | 30,712 | 20,915 |
Interest-bearing deposits | 980 | |
Investment securities available for sale (carried at fair value) | 266,171 | 261,138 |
Loans held for sale | 5,886 | 5,991 |
Loans, net of allowance for loan losses of $12,670 and $12,641, at March 31, 2016 and December 31, 2015, respectively | 1,074,221 | 1,068,204 |
Premises and equipment, net | 31,786 | 31,048 |
Federal Home Loan Bank stock | 10,482 | 10,482 |
Deferred tax asset, net | 10,326 | 12,084 |
Cash value of life insurance | 51,493 | 51,209 |
Goodwill | 1,800 | 1,800 |
Other real estate owned and repossessed assets | 2,352 | 2,456 |
Other assets | 13,023 | 12,938 |
Total assets | 1,499,232 | 1,478,265 |
Deposits | ||
Noninterest-bearing | 192,310 | 179,542 |
Interest-bearing | 921,613 | 911,840 |
Total deposits | 1,113,923 | 1,091,382 |
Federal Home Loan Bank advances | 218,617 | 225,617 |
Other borrowings | 9,279 | 9,458 |
Other liabilities | 16,615 | 14,783 |
Total liabilities | $ 1,358,434 | $ 1,341,240 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock, $.01 par value Authorized - 20,000,000 shares Issued and outstanding - 7,459,543 and 7,422,061 shares at March 31, 2016 and December 31, 2015, respectively | $ 75 | $ 74 |
Additional paid-in capital | 77,660 | 77,363 |
Retained earnings | 59,421 | 58,098 |
Accumulated other comprehensive income | 3,642 | 1,490 |
Total stockholders' equity | 140,798 | 137,025 |
Total liabilities and stockholders' equity | $ 1,499,232 | $ 1,478,265 |
Consolidated Condensed Balance3
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Allowance for loan losses | $ 12,670,000 | $ 12,641,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, Authorized | 20,000,000 | 20,000,000 |
Common stock, shares Issued | 7,459,543 | 7,422,061 |
Common stock, shares outstanding | 7,459,543 | 7,422,061 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Income - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest and Dividend Income | ||
Loans receivable | $ 11,220,000 | $ 10,866,000 |
Investment securities | 1,689,000 | 1,670,000 |
Federal Home Loan Bank stock | 105,000 | 140,000 |
Deposits with financial institutions | 20,000 | 7,000 |
Total interest and dividend income | 13,034,000 | 12,683,000 |
Interest Expense | ||
Deposits | 1,285,000 | 1,372,000 |
Federal Home Loan Bank advances | 895,000 | 665,000 |
Other | 92,000 | 128,000 |
Total interest expense | 2,272,000 | 2,165,000 |
Net Interest Income | 10,762,000 | 10,518,000 |
Provision for loan losses | 200,000 | |
Net Interest Income After Provision for Loan Losses | 10,562,000 | 10,518,000 |
Non-interest Income | ||
Service fee income | 1,374,000 | 1,358,000 |
Net realized gain on sales of available-for-sale securities | 118,000 | 240,000 |
Commissions | 1,100,000 | 1,121,000 |
Net gains on sales of loans | 940,000 | 906,000 |
Net servicing fees | 70,000 | 68,000 |
Increase in cash value of life insurance | 284,000 | 288,000 |
Loss on sale of other real estate and repossessed assets | (29,000) | (82,000) |
Other income | 140,000 | 118,000 |
Total non-interest income | 3,997,000 | 4,017,000 |
Non-interest Expenses | ||
Salaries and employee benefits | 6,491,000 | 6,530,000 |
Net occupancy expenses | 646,000 | 603,000 |
Equipment expenses | 487,000 | 453,000 |
Data processing fees | 489,000 | 444,000 |
Advertising and promotion | 427,000 | 333,000 |
ATM and debit card expenses | 380,000 | 335,000 |
Deposit insurance | 234,000 | 232,000 |
Professional fees | 470,000 | 530,000 |
Software subscriptions and maintenance | 480,000 | 427,000 |
Other real estate and repossessed assets | 72,000 | 127,000 |
Other expenses | 1,240,000 | 1,004,000 |
Total non-interest expenses | 11,416,000 | 11,018,000 |
Income Before Income Tax | 3,143,000 | 3,517,000 |
Income tax expense | 778,000 | 1,036,000 |
Net Income Available to Common Shareholders | $ 2,365,000 | $ 2,481,000 |
Earnings Per Common Share | ||
Basic | $ 0.32 | $ 0.34 |
Diluted | 0.31 | 0.33 |
Dividends Per Common Share | $ 0.14 | $ 0.12 |
Consolidated Condensed Stateme5
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 2,365 | $ 2,481 |
Other comprehensive income: | ||
Net unrealized holding gain on securities available-for-sale | 3,414 | 1,040 |
Reclassification adjustment for realized gains included in net income | (118) | (240) |
Net unrealized gain (loss) on derivative used for cash flow hedges | (25) | 15 |
Other comprehensive income, before tax, total | 3,271 | 815 |
Income tax expense related to other comprehensive income | (1,119) | (280) |
Other comprehensive income, net of tax | 2,152 | 535 |
Comprehensive Income | $ 4,517 | $ 3,016 |
Consolidated Condensed Stateme6
Consolidated Condensed Statement of Stockholders' Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands | Common Stock [Member] | Paid-in Capital Common [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Beginning Balance at Dec. 31, 2015 | $ 74 | $ 77,363 | $ 58,098 | $ 1,490 | $ 137,025 |
Net income | 2,365 | 2,365 | |||
Other comprehensive income, net of taxes | 2,152 | 2,152 | |||
Stock repurchased | (761) | (761) | |||
Stock options, exercised | 1 | 886 | 887 | ||
Tax benefit on stock options | 172 | 172 | |||
Cash dividends, common stock | (1,042) | (1,042) | |||
Ending Balance at Mar. 31, 2016 | $ 75 | $ 77,660 | $ 59,421 | $ 3,642 | $ 140,798 |
Consolidated Condensed Stateme7
Consolidated Condensed Statement of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Stockholders Equity [Abstract] | ||
Cash dividends, common stock, per share | $ 0.14 | $ 0.12 |
Consolidated Condensed Stateme8
Consolidated Condensed Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities | ||
Net income | $ 2,365 | $ 2,481 |
Items not requiring cash | ||
Provision for loan losses | 200 | |
Depreciation and amortization | 1,220 | 1,098 |
Deferred income tax | 640 | 35 |
Loans originated for sale | (23,853) | (30,922) |
Proceeds from sales of loans held for sale | 24,826 | 27,110 |
Gain on sale of loans held for sale | (940) | (906) |
Net gain on sale of securities, available for sale | (118) | (240) |
Loss on sale of other real estate and repossessed assets | 29 | 82 |
Change in | ||
Interest receivable and other assets | (64) | 350 |
Interest payable and other liabilities | 1,762 | 1,358 |
Cash value of life insurance | (284) | (288) |
Other adjustments | 34 | 37 |
Net cash provided by operating activities | 5,817 | 195 |
Investing Activities | ||
Net change in interest-bearing time deposits | (980) | |
Purchases of securities | ||
Available for sale | (13,577) | (21,510) |
Proceeds from maturities and paydowns of securities | ||
Available for sale | 7,788 | 8,075 |
Proceeds from sales of securities - available for sale | 3,883 | 7,539 |
Net change in loans | (6,948) | (7,425) |
Purchases of premises and equipment | (1,188) | (527) |
Proceeds from real estate owned sales | 502 | 604 |
Other investing activities | 65 | |
Net cash used in investing activities | (10,455) | (13,244) |
Net change in | ||
Noninterest-bearing, interest-bearing demand and savings deposits | 17,868 | 18,073 |
Certificates of deposit | 4,673 | (11,268) |
Proceeds from FHLB advances | 64,200 | 85,800 |
Repayments of FHLB advances | (71,200) | (90,700) |
Repayments of other borrowings | (190) | (190) |
Cash dividends | (1,042) | (885) |
Stock options exercised | 887 | 1,311 |
Stock repurchased | (761) | |
Net cash provided by financing activities | 14,435 | 2,141 |
Net Change in Cash and Cash Equivalents | 9,797 | (10,908) |
Cash and Cash Equivalents, Beginning of Period | 20,915 | 29,575 |
Cash and Cash Equivalents, End of Period | 30,712 | 18,667 |
Additional Cash Flows Information | ||
Interest paid | 2,223 | 2,141 |
Income tax paid | 800 | |
Transfers from loans to foreclosed real estate | 303 | 266 |
Mortgage servicing rights capitalized | $ 72 | $ 87 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
Basis of Presentation | |
Basis of Presentation | Note 1: Basis of Presentation The consolidated condensed financial statements include the accounts of MutualFirst Financial, Inc. ( MutualFirst or the “Company”), its wholly owned subsidiaries, MFBC Statutory Trust, MutualFirst Risk Management, Inc., MutualFirst Risk Advisors, Inc., and MutualBank, an Indiana commercial bank (“Mutual” or the “Bank”), Mutual’s wholly owned subsidiaries, First MFSB Corporation, Mishawaka Financial Services, Summit Service Corp. and the wholly owned subsidiary of Summit Service Corp., Summit Mortgage Inc. (“Summit”), Mutual Federal Investment Company (“MFIC”), and MFIC majority owned subsidiary, Mutual Federal REIT, Inc. All significant inter-company accounts and transactions have been eliminated in consolidation. These companies 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. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for the year ended December 31, 2015, filed with the Securities and Exchange Commission on March 15, 2016. The interim consolidated condensed financial statements at and for the three months ended March 31, 2016 and 2015, have not been audited by independent accountants, but in the opinion of management, reflect all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for such periods. The results of operations for the period are not necessarily indicative of the results to be expected for the full year. The Consolidated Condensed Balance Sheet of the Company as of December 31, 2015 has been derived from the Audited Consolidated Balance Sheet of the Company as of that date. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2: Earnings Per Share Earnings per share were computed as follows: Three Months Ended March 31, 2016 2015 Net Income Weighted- Average Shares Per-Share Amount Net Income Weighted- Average Shares Per-Share Amount Basic Earnings Per Share Net income $ 2,365 7,466,409 $ 0.32 $ 2,481 7,313,725 $ 0.34 Effect of Dilutive Securities Stock options - 149,471 - 194,968 Diluted Earnings Per Share Net income available and assumed conversions $ 2,365 7,615,880 $ 0.31 $ 2,481 7,508,693 $ 0.33 Options to purchase 37,161 shares of common stock were outstanding at March 31, 2016 and 2015, respectively , but were not included in the computation of diluted EPS because the options’ exercise price s w ere greater than the average market price of the common shares. |
Impact of Accounting Pronouncem
Impact of Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
Impact of Accounting Pronouncements [Abstract] | |
Impact of Accounting Pronouncements | Note 3: Impact of Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB), issued Accounting Standards Updated (ASU) 2016-09, Compensation–Stock Compensation: Improvements to Employee Share-Based Payment Accounting. The amendments are intended to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. For public companies, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any organization in any interim or annual period. The Company does not anticipate that this ASU will have a material effect on its financial position or results of operations. In March 2016, the FASB issued ASU 2016-07, Investments - Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting. The amendments affect all entities that have an investment that becomes qualified for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence. The amendments eliminate the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an investor must adjust the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor’s previously held interest and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. The amendments require that an entity that has an available-for-sale equity security that becomes qualified for the equity method of accounting recognize through earnings the unrealized holding gain or loss in accumulated other comprehensive income at the date the investment becomes qualified for use of the equity method. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments should be applied prospectively upon their effective date to increases in the level of ownership interest or degree of influence that result in the adoption of the equity method. Earlier application is permitted. The Company does not anticipate that this ASU will have a material effect on its financial position or results of operations. In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging: Contingent Put and Call Options in Debt Instruments . The amendments apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. Derivatives and Hedging, requires that embedded derivatives be separated from the host contract and accounted for separately as derivatives if certain criteria are met. One of those criteria is that the economic characteristics and risks of the embedded derivatives are not clearly and closely related to the economic characteristics and risks of the host contract (the “clearly and closely related” criterion). U.S. GAAP provides specific guidance for assessing whether call (put) options that can accelerate the repayment of principal on a debt instrument meet the clearly and closely related criterion. The guidance states that for contingent call (put) options to be considered clearly and closely related, they can be indexed only to interest rates or credit risk. The amendments clarify what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative. Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks. Public business entities must apply the new requirements for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. All entities have the option of adopting the new requirements early, including adoption in an interim period. If an entity early adopts the new requirements in an interim period, it must reflect any adjustments as of the beginning of the fiscal year that includes that interim period. The Company does not anticipate that this ASU will have a material effect on its financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, Leases. The objective of the amendment is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The most significant changes under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: · A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and · A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The amendments in this updated are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating what impact this pronouncement will have on its consolidated financial statements . In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this Update require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition the amendments in this Update eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement for to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. The new guidance is effective for fiscal years beginning of December 15, 2017, including interim periods within those fiscal years. The Company does not anticipate that this ASU will have a material effect on its financial position or results of operations. In December 2015, the FASB issued ASU 2015-16, Business Combinations, Simplifying the Accounting for Measurement-Period Adjustments. The objective of this Update was to simplify the accounting for adjustments made to provisional amounts recognized in a business combination. The amendments eliminate the requirement to retrospectively account for those adjustments. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2016 | |
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 in the tables below. All mortgage-backed securities and collateralized mortgage obligations are guaranteed by government sponsored entities or government corporations. March 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for Sale Securities Mortgage-backed securities $ 104,097 $ 2,478 $ (16) $ 106,559 Collateralized mortgage obligations 82,835 1,225 (187) 83,873 Municipal obligations 60,731 3,510 (30) 64,211 Corporate obligations 12,806 45 (1,323) 11,528 Total investment securities $ 260,469 $ 7,258 $ (1,556) $ 266,171 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for Sale Securities Mortgage-backed securities $ 106,524 $ 1,562 $ (248) $ 107,838 Collateralized mortgage obligations 84,976 537 (861) 84,652 Municipal obligations 54,427 2,781 (20) 57,188 Corporate obligations 12,805 1 (1,346) 11,460 Total investment securities $ 258,732 $ 4,881 $ (2,475) $ 261,138 The amortized cost and fair value of securities available for sale at March 31, 2016 , 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 Within one year $ - $ - One to five years 10,002 10,031 Five to ten years 3,099 3,364 After ten years 60,436 62,344 73,537 75,739 Mortgage-backed securities 104,097 106,559 Collateralized mortgage obligations 82,835 83,873 Totals $ 260,469 $ 266,171 Proceeds from sales of securities available for sale for the three months ended March 31, 2016 and 2015 w ere $3.9 mi l lion and $7.5 million, respectively . Gross gains of $118,000 compared to $240,000 for the three months ended March 31, 2016 and 2015, respectively, were recognized on those sales. There were no gross losses recognized on the sales of securities for the three months ended March 31, 2016 and 2015, respectively. All mortgage-backed securities and collateralized-mortgage obligations held by the Company as of March 31, 2016 were in government - sponsored or 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 March 31, 2016 and December 31, 2015 was $ 24.9 million and $ 97.6 million, respectively, which wa s approximately 9.3 percent and 37.4 percent , respectively, 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 fair value for the securities at less than historical cost f or the periods presented, 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. During the first three months of 201 6 and 2015, the Bank determined that its security holdings had no other-than-temporary impairment. 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 March 31, 2016 and December 31, 2015: March 31, 2016 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 $ 1,390 $ (16) $ - $ - $ 1,390 $ (16) Collateralized mortgage obligations - - 13,223 (187) 13,223 (187) Municipal obligations 2,784 (29) 492 (1) 3,276 (30) Corporate obligations 4,449 (51) 2,534 (1,272) 6,983 (1,323) Total temporarily impaired securities $ 8,623 $ (96) $ 16,249 $ (1,460) $ 24,872 $ (1,556) December 31, 2015 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 $ 38,649 $ (248) $ - $ - $ 38,649 $ (248) Collateralized mortgage obligations 27,457 (281) 21,271 (580) $ 48,728 $ (861) Municipal obligations 2,739 (17) 491 (3) 3,230 (20) Corporate obligations 4,425 (75) 2,534 (1,271) 6,959 (1,346) Total temporarily impaired securities $ 73,270 $ (621) $ 24,296 $ (1,854) $ 97,566 $ (2,475) Mortgage-Backed Securities (MBS) and Collateralized Mortgage Obligations (CMO) The unrealized losses on the Company’s investment in MBSs and CMOs 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 any of these investments to be other-than-temporarily impaired at March 31, 2016 . Municipals The increase in unrealized gains 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 more likely than not that the Company will not be required to sell these investments before recovery of its new, lower amortized cost basis, which may be at maturity. The Corporation does not consider these investment securities to be other-than-temporarily impaired at March 31, 2016. Corporate Obligations The Company’s unrealized loss es on investments in corporate obligations primarily relates to two investment s in pooled trust preferred securit ies . 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 recognized loss es, in 2011 and earlier, equal to the credit loss es 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 investment s 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 se investments to be other-than-temporarily impaired at March 31, 2016 . Other-Than-Temporary Impairment (OTTI) 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 that are not a beneficial interest in securitized financial assets, the Company uses debt and equity securities impairment accounting 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 . 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 little demand 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 s adjustments as necessary to reflect this additional risk. 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 s provide information about debt securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income for the three months ended March 31, 2016 and 2015 . Three Months Ended March 31, 2016 2015 Credit losses on debt securities held Beginning of period $ 109 $ 109 Reductions related to actual losses incurred - - As of March 31, $ 109 $ 109 Pooled Trust Preferred Securities . The Company has invested in pooled trust preferred securities. At March 31, 2016, the current book balance of our pooled trust preferred securities was $3.8 million. The original par value of these securities was $4.0 million prior to the OTTI write-downs in 2011 and earlier. OTTI taken on trust preferred securities previously was the result of deterioration in the performance of the underlying collateral. The deterioration was the result of increased defaults and deferrals of dividend payments in that year, creating credit impairment along with weakening financial performance of performing collateral, increasing the risk of future deferrals of dividends and defaults. No additional OTTI was determined in the first quarter of 201 6 . All pooled trust preferred securities owned by the Company are exempt from the Volcker Rule. The following table provides additional information related to the Company’s investment in pooled trust preferred securities as of March 31, 2016: Deal Name Class Original Par Book Value Fair Value Unrealized loss Realized Losses YTD Lowest Current Rating Number of Banks / Insurance Cos. Currently Performing Total Number of Banks and Insurance Cos. In Issuance (Unique) Actual Deferrals/ Defaults (as a % of original collateral) Total Projected Defaults (as a % of performing collateral) (1) Excess subordination (after taking into account best estimate of future deferrals/ defaults) (2) (Dollars in Thousands) Alesco Preferred Funding IX A1 $ 1,000 $ 915 $ 548 $ (367) $ - CCC- 43 50 6.75 % 10.68 % 54.87 % U.S. Capital Funding I B3 3,000 2,891 1,986 (905) - C 29 33 7.95 % 6.45 % 11.81 % $ 4,000 $ 3,806 $ 2,534 $ (1,272) $ - (1) A 10% recovery is applied to all projected defaults by depository institutions. A 15% recovery is applied to all projected defaults by insurance companies. No recovery is applied to current defaults. (2) Excess subordination represents the additional defaults in excess of both current and projected defaults that the CDO can absorb before the bond experiences any credit impairment. Excess subordinated percentage is calculated by (a) determining what percentage of defaults a deal can experience before the bond has credit impairment, and (b) subtracting from this default breakage percentage both total current and expected future default percentages. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 5: Accumulated Other Comprehensive Income The components of accumulated other comprehensive income, included in stockholders’ equity, are as follows: March 31, December 31, 2016 2015 Net unrealized gain on securities available-for-sale $ 6,607 $ 3,311 Net unrealized loss on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income (905) (905) Net unrealized loss on derivative used for cash flow hedges (26) (1) Net unrealized loss relating to defined benefit plan liability (32) (32) 5,644 2,373 Tax expense 2,002 883 Net of tax amount $ 3,642 $ 1,490 The following table presents the reclassification adjustments out of accumulated other comprehensive income that were included in net income in the Consolidated Statements of Income for the three months ended March 31, 2016 and 2015. Amount Reclassified from Accumulated Other Comprehensive Income For the Three Months Ended March 31, Details about Accumulated Other Comprehensive Income Components 2016 2015 Affected Line Item in the Statements of Income Unrealized gains on available-for-sale securities Realized securities gains reclassified into income $ 118 $ 240 Other income - net realized gains on sale of available-for-sale securities Related income tax expense (40) (82) Income tax expense Total reclassifications for the period, net of tax $ 78 $ 158 |
Fair Values of Financial Instru
Fair Values of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Values of Financial Instruments [Abstract] | |
Fair Values of Financial Instruments | Note 6: 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 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable 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. Pooled trust preferred securities p rices 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, small business administration, marketable equity, 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 on a recurring basis and level within the ASC 820 fair value hierarchy. Fair Value Measurements Using Fair Value Level 1 Level 2 Level 3 March 31, 2016 Mortgage-backed securities $ 106,559 $ - $ 106,559 $ - Collateralized mortgage obligations 83,873 - 83,873 - Municipal obligations 64,211 - 64,211 - Corporate obligations 11,528 - 8,994 2,534 Available-for-sale securities $ 266,171 $ - $ 263,637 $ 2,534 Fair Value Measurements Using Fair Value Level 1 Level 2 Level 3 December 31, 2015 Mortgage-backed securities $ 107,838 $ - $ 107,838 $ - Collateralized mortgage obligations 84,652 - 84,652 - Municipal obligations 57,188 - 57,188 - Corporate obligations 11,460 - 8,926 2,534 Available-for-sale securities $ 261,138 $ - $ 258,604 $ 2,534 The following is a reconciliation of the beginning and ending balances for the three months ended March 31, 2016 and 2015 of recurring fair value measurements recognized in the accompanying balance sheet s using significant unobservable (Level 3) inputs: Three Months Ended March 31, 2016 2015 Beginning balance $ 2,534 $ 2,522 Total realized and unrealized gains (losses) Included in net income - - Included in other comprehensive income (loss) - - Purchases, issuances and settlements - - Ending balance $ 2,534 $ 2,522 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 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. The following table presents the fair value measurement of assets measured on a nonrecurring basis and the level within the ASC 820 fair value hierarch y. 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. Fair Value Measurements Using Fair Value Level 1 Level 2 Level 3 December 31, 2015 Impaired loans $ 676 $ - $ - $ 676 The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements : March 31, 2016 Fair Value Valuation Technique Unobservable Inputs Range Trust Preferred Securities $ 2,534 Discounted cash flow Discount rate 7.0 - 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 33.8 - 40.2 % December 31, 2015 Fair Value Valuation Technique Unobservable Inputs Range Trust Preferred Securities $ 2,534 Discounted cash flow Discount rate 7.0 - 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 33.8 - 40.2 % Impaired loans (collateral dependent) $ 676 Third party valuations Discount to reflect realizable value 20.0 - 50.0 % The following methods and assumptions were used to estimate the fair value of all other financial instrument s 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 March 31, 2016 Carryi n g Amount Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 30,712 $ 30,712 $ 30,712 $ - $ - Interest-bearing time deposits 980 980 980 - - Loans held for sale 5,886 6,095 - 6,095 - Loans, net 1,074,221 1,073,638 - - 1,073,638 FHLB stock 10,482 10,482 - 10,482 - Interest receivable 3,962 3,962 - 3,962 - Liabilities Deposits 1,113,923 1,116,266 758,627 - 357,639 FHLB advances 218,617 220,523 - 220,523 - Other borrowings 9,279 9,305 - 9,305 - Interest payable 248 248 - 248 - Fair Value Measurements Using December 31, 2015 Carryi n g Amount Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 20,915 $ 20,915 $ 20,915 $ - $ - Loans held for sale 5,991 6,058 - 6,058 - Loans, net 1,068,204 1,056,357 - - 1,056,357 FHLB stock 10,482 10,482 - 10,482 - Interest receivable 4,201 4,201 - 4,201 - Liabilities Deposits 1,091,382 1,090,975 740,759 - 350,216 FHLB advances 225,617 224,621 - 224,621 - Other borrowings 9,458 9,459 - 9,459 - Interest payable 199 199 - 199 - |
Loans and Allowance
Loans and Allowance | 3 Months Ended |
Mar. 31, 2016 | |
Loans and Allowance [Abstract] | |
Loans and Allowance | Note 7: Loans and Allowance Classes of loans at March 31, 2016 and December 31, 2015 include: March 31, December 31, 2016 2015 Real estate Commercial $ 248,893 $ 236,895 Commercial construction and development 18,039 15,744 Consumer closed end first mortgage 487,389 491,451 Consumer open end and junior liens 70,911 70,990 825,232 815,080 Other loans Consumer loans Auto 15,506 15,480 Boat/RVs 126,810 123,621 Other 5,785 6,171 Commercial and industrial 118,275 123,043 266,376 268,315 Total loans 1,091,608 1,083,395 Undisbursed loans in process (9,644) (7,432) Unamortized deferred loan costs, net 4,927 4,882 Allowance for loan losses (12,670) (12,641) Net loans $ 1,074,221 $ 1,068,204 The risk characteristics of each loan portfolio segment are as follows: Commercial Real estate These 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. Construction and Development 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 and Industrial Commercial 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 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. Consumer Real Estate and Other Consumer Loans With respect to residential loans that are secured by consumer closed end first mortgages and are primarily owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires PMI if that ratio is exceeded. Consumer open end and junior lien loans are typically secured by a subordinate interest in 1-4 family residences, and other 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. Nonaccrual Loans 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 management ’ s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions, but never greater than 90 days past due. All interest accrued but not collected for loans that are placed on nonaccrual status 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. Nonaccrual loans, segregated by class of loans, as of March 31, 2016 and December 31, 2015 are as follows: March 31, December 31, 2016 2015 Real estate Commercial $ 2,109 $ 2,356 Commercial construction and development 22 - Consumer closed end first mortgage 3,180 3,592 Consumer open end and junior liens 635 783 Consumer loans Auto 15 - Boat/RVs 90 81 Other 20 67 Commercial and industrial 2 25 Total nonaccrual loans $ 6,073 $ 6,904 An age analysis of the Company’s past due loans, segregated by class of loans, as of March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 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 Past Due and Accruing Real estate Commercial $ 725 $ 149 $ 1,968 $ 2,842 $ 246,051 $ 248,893 $ - Commercial construction and development - - 2 2 18,037 18,039 - Consumer closed end first mortgage 5,607 2,189 3,319 11,115 476,274 487,389 385 Consumer open end and junior liens 222 202 635 1,059 69,852 70,911 - Consumer loans Auto 53 3 15 71 15,435 15,506 - Boat/RVs 534 101 77 712 126,098 126,810 - Other 121 18 20 159 5,626 5,785 - Commercial and industrial 50 36 - 86 118,189 118,275 - Total $ 7,312 $ 2,698 $ 6,036 $ 16,046 $ 1,075,562 $ 1,091,608 $ 385 December 31, 2015 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 Past Due and Accruing Real estate Commercial $ 922 $ 20 $ 2,212 $ 3,154 $ 233,741 $ 236,895 $ - Commercial construction and development - - - - 15,744 15,744 - Consumer closed end first mortgage 7,272 1,328 3,091 11,691 479,760 491,451 267 Consumer open end and junior liens 296 187 765 1,248 69,742 70,990 - Consumer loans Auto 89 - - 89 15,391 15,480 - Boat/RVs 1,135 102 71 1,308 122,313 123,621 - Other 89 14 62 165 6,006 6,171 - Commercial and industrial 192 383 5 580 122,463 123,043 - Total $ 9,995 $ 2,034 $ 6,206 $ 18,235 $ 1,065,160 $ 1,083,395 $ 267 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 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 status is accounted for on the cash-basis method until qualifying for return to accrual status . Interest is accrued per the contract for impaired loans that are performing. The following tables present impaired loans as of and for the three month periods ended March 31, 2016 and 2015 and the year ended December 31, 2015 . There were no loans with a specific valuation allowance as of March 31, 2015. March 31, 2016 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized Loans without a specific valuation allowance Real estate Commercial $ 3,150 $ 3,150 $ - $ 3,172 $ 23 Commercial construction and development 859 859 - 934 12 Consumer closed end first mortgage 1,126 1,126 - 1,126 - Consumer open end and junior liens 485 485 - 483 - Commercial and industrial 208 208 - 212 - Loans with a specific valuation allowance Real estate Commercial 517 517 100 596 - Total Real estate Commercial $ 3,667 $ 3,667 $ 100 $ 3,768 $ 23 Commercial construction and development $ 859 $ 859 $ - $ 934 $ 12 Consumer closed end first mortgage $ 1,126 $ 1,126 $ - $ 1,126 $ - Consumer open end and junior liens $ 485 $ 485 $ - $ 483 $ - Commercial and industrial $ 208 $ 208 $ - $ 212 $ - Total $ 6,345 $ 6,345 $ 100 $ 6,523 $ 35 December 31, 2015 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized Loans without a specific valuation allowance Real estate Commercial $ 3,608 $ 3,608 $ - $ 4,115 $ 172 Commercial construction and development 595 595 - 735 31 Consumer closed end first mortgage 1,126 1,126 - 1,131 - Consumer open end and junior liens 481 481 - 381 - Commercial and industrial 214 214 - 423 2 Loans with a specific valuation allowance Real estate Commercial 676 676 100 793 20 Total Real estate Commercial $ 4,284 $ 4,284 $ 100 $ 4,908 $ 192 Commercial construction and development $ 595 $ 595 $ - $ 735 $ 31 Consumer closed end first mortgage $ 1,126 $ 1,126 $ - $ 1,131 $ - Consumer open end and junior liens $ 481 $ 481 $ - $ 381 $ - Commercial and industrial $ 214 $ 214 $ - $ 423 $ 2 Total $ 6,700 $ 6,700 $ 100 $ 7,578 $ 225 March 31, 2015 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized Loans without a specific valuation allowance Real estate Commercial $ 5,225 $ 5,225 $ - $ 5,079 $ 56 Commercial construction and development 851 1,628 - 891 7 Consumer closed end first mortgage 1,138 1,138 - 1,138 - Consumer open end and junior liens 476 476 - 238 - Commercial and industrial 702 733 - 730 1 Total $ 8,392 $ 9,200 $ - $ 8,076 $ 64 The following information presents the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of March 31, 2016 . 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 B ank'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 i f 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. March 31, 2016 Commercial Consumer Pass Special Mention Substandard Doubtful Pass Special Mention Substandard Total Real estate Commercial $ 236,382 $ 6,995 $ 5,483 $ 33 $ 248,893 Commercial construction and development 16,060 1,095 884 - 18,039 Consumer closed end first mortgage $ 481,227 $ - $ 6,162 487,389 Consumer open end and junior liens 70,200 - 711 70,911 Other loans Consumer loans Auto 15,491 - 15 15,506 Boat/RVs 126,662 - 148 126,810 Other 5,760 - 25 5,785 Commercial and industrial 114,787 3,295 193 - 118,275 $ 367,229 $ 11,385 $ 6,560 $ 33 $ 699,340 $ - $ 7,061 $ 1,091,608 December 31, 2015 Commercial Consumer Pass Special Mention Substandard Doubtful Pass Special Mention Substandard Total Real estate Commercial $ 226,439 $ 4,137 $ 6,319 $ - $ 236,895 Commercial construction and development 13,986 1,309 449 - 15,744 Consumer closed end first mortgage $ 484,658 $ - $ 6,793 491,451 Consumer open end and junior liens 70,086 - 904 70,990 Other loans Consumer loans Auto 15,480 - - 15,480 Boat/RVs 123,490 - 131 123,621 Other 6,097 - 74 6,171 Commercial and industrial 119,540 3,300 203 - 123,043 $ 359,965 $ 8,746 $ 6,971 $ - $ 699,811 $ - $ 7,902 $ 1,083,395 Allowance for Loan Losses . 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 FASB 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 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. The following table details activity in the allowance for loan losses by portfolio segment for the three month periods ended March 31, 2016 and 2015 , respectively. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other segments. Three Months Ended March 31, 2016 Commercial Mortgage Consumer Total Allowance for loan losses: Balance, beginning of period $ 7,090 $ 2,683 $ 2,868 $ 12,641 Provision charged to expense 120 62 18 200 Losses charged off (4) (120) (138) (262) Recoveries 2 4 85 91 Balance, end of period $ 7,208 $ 2,629 $ 2,833 $ 12,670 Three Months Ended March 31, 2015 Commercial Mortgage Consumer Total Allowance for loan losses: Balance, beginning of period $ 7,085 $ 3,471 $ 2,612 $ 13,168 Provision charged (credited) to expense (396) 188 208 - Losses charged off - (93) (117) (210) Recoveries 205 1 53 259 Balance, end of period $ 6,894 $ 3,567 $ 2,756 $ 13,217 The following tables provide a breakdown of the allowance for loans losses and loan portfolio balances by segment as of March 31, 2016 and December 31, 2015. Three Months Ended March 31, 2016 Commercial Mortgage Consumer Total Allowance balances Individually evaluated for impairment $ 100 $ - $ - $ 100 Collectively evaluated for impairment 7,108 2,629 2,833 12,570 Total allowance for loan losses $ 7,208 $ 2,629 $ 2,833 $ 12,670 Loan balances Individually evaluated for impairment $ 4,734 $ 1,126 $ 485 $ 6,345 Collectively evaluated for impairment 380,473 486,263 218,527 1,085,263 Gross loans $ 385,207 $ 487,389 $ 219,012 $ 1,091,608 Year Ended December 31, 2015 Commercial Mortgage Consumer Total Allowance balances Individually evaluated for impairment $ 100 $ - $ - $ 100 Collectively evaluated for impairment 6,990 2,683 2,868 12,541 Total allowance for loan losses $ 7,090 $ 2,683 $ 2,868 $ 12,641 Loan balances Individually evaluated for impairment $ 5,093 $ 1,126 $ 481 $ 6,700 Collectively evaluated for impairment 370,589 490,325 215,781 1,076,695 Gross loans $ 375,682 $ 491,451 $ 216,262 $ 1,083,395 Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. For all loan portfolio segments except consumer real estate and other consumer loans, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off consumer real estate and other consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 180 days past due, charge-off of unsecured open-end loans when the loan is 180 days past due, and charge-down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged-off. 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 if the collection of principal and interest is reasonably assured and generally stays on accrual. At March 31, 2016 , the Company had a number of loans that were modified in troubled debt restructurings. 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 three month periods ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 No. of Loans Pre-Modification Recorded Balance Post-Modification Recorded Balance No. of Loans Pre-Modification Recorded Balance Post-Modification Recorded Balance Real estate Commercial - $ - $ - 2 $ 1,172 $ 1,170 Construction and development - - - 1 155 134 Consumer closed end first mortgage 5 419 428 3 156 154 Other loans Consumer loans Auto 1 4 4 - - - Boat/RVs 2 48 48 - - - Commercial and industrial 1 83 83 1 88 83 The impact on the allowance for loan losses was insignificant as a result of these modifications. Newly restructured loans by type for the three months ended March 31, 2016 and 2015 are as follows: Three Months Ended March 31, 2016 Rate Term Combination Total Modification Real Estate Consumer closed end first mortgage $ - $ - $ 428 $ 428 Other loans Consumer loans Auto - - 4 4 Boat/RVs - 48 - 48 Commercial and industrial - 83 - 83 Three Months Ended March 31, 2015 Rate Term Combination Total Modification Real Estate Commercial $ - $ 1,170 $ - $ 1,170 Com m ercial construction and development - - 134 134 Consumer closed end first mortgage - - 154 154 Other loans Commercial and industrial - - 83 83 There were no defaults on loans modified as troubled debt restructurings made in the three months ended March 31, 2016 or 2015. Defaults are defined as any loans that become 90 days past due . At March 31, 2016 , the Company held residential real estate held for sale as a result of foreclosure totaling $ 712 ,000 and real estate in the process of foreclosure of $1. 9 million. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Earnings per share were computed as follows: Three Months Ended March 31, 2016 2015 Net Income Weighted- Average Shares Per-Share Amount Net Income Weighted- Average Shares Per-Share Amount Basic Earnings Per Share Net income $ 2,365 7,466,409 $ 0.32 $ 2,481 7,313,725 $ 0.34 Effect of Dilutive Securities Stock options - 149,471 - 194,968 Diluted Earnings Per Share Net income available and assumed conversions $ 2,365 7,615,880 $ 0.31 $ 2,481 7,508,693 $ 0.33 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 in the tables below. All mortgage-backed securities and collateralized mortgage obligations are guaranteed by government sponsored entities or government corporations. March 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for Sale Securities Mortgage-backed securities $ 104,097 $ 2,478 $ (16) $ 106,559 Collateralized mortgage obligations 82,835 1,225 (187) 83,873 Municipal obligations 60,731 3,510 (30) 64,211 Corporate obligations 12,806 45 (1,323) 11,528 Total investment securities $ 260,469 $ 7,258 $ (1,556) $ 266,171 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Available for Sale Securities Mortgage-backed securities $ 106,524 $ 1,562 $ (248) $ 107,838 Collateralized mortgage obligations 84,976 537 (861) 84,652 Municipal obligations 54,427 2,781 (20) 57,188 Corporate obligations 12,805 1 (1,346) 11,460 Total investment securities $ 258,732 $ 4,881 $ (2,475) $ 261,138 |
Amortized Cost and Fair Value of Available for Sale Securities by Contractual Maturity | Available for Sale Description Securities Amortized Cost Fair Value Security obligations due Within one year $ - $ - One to five years 10,002 10,031 Five to ten years 3,099 3,364 After ten years 60,436 62,344 73,537 75,739 Mortgage-backed securities 104,097 106,559 Collateralized mortgage obligations 82,835 83,873 Totals $ 260,469 $ 266,171 |
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 March 31, 2016 and December 31, 2015: March 31, 2016 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 $ 1,390 $ (16) $ - $ - $ 1,390 $ (16) Collateralized mortgage obligations - - 13,223 (187) 13,223 (187) Municipal obligations 2,784 (29) 492 (1) 3,276 (30) Corporate obligations 4,449 (51) 2,534 (1,272) 6,983 (1,323) Total temporarily impaired securities $ 8,623 $ (96) $ 16,249 $ (1,460) $ 24,872 $ (1,556) December 31, 2015 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 $ 38,649 $ (248) $ - $ - $ 38,649 $ (248) Collateralized mortgage obligations 27,457 (281) 21,271 (580) $ 48,728 $ (861) Municipal obligations 2,739 (17) 491 (3) 3,230 (20) Corporate obligations 4,425 (75) 2,534 (1,271) 6,959 (1,346) Total temporarily impaired securities $ 73,270 $ (621) $ 24,296 $ (1,854) $ 97,566 $ (2,475) |
Debt Securities for which Credit Loss was Recognized in Income and Other Losses Recorded in Other Comprehensive Income | The following table s provide information about debt securities for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income for the three months ended March 31, 2016 and 2015 . Three Months Ended March 31, 2016 2015 Credit losses on debt securities held Beginning of period $ 109 $ 109 Reductions related to actual losses incurred - - As of March 31, $ 109 $ 109 |
Pooled Trust Preferred Collateralized Debt Obligations | The following table provides additional information related to the Company’s investment in pooled trust preferred securities as of March 31, 2016: Deal Name Class Original Par Book Value Fair Value Unrealized loss Realized Losses YTD Lowest Current Rating Number of Banks / Insurance Cos. Currently Performing Total Number of Banks and Insurance Cos. In Issuance (Unique) Actual Deferrals/ Defaults (as a % of original collateral) Total Projected Defaults (as a % of performing collateral) (1) Excess subordination (after taking into account best estimate of future deferrals/ defaults) (2) (Dollars in Thousands) Alesco Preferred Funding IX A1 $ 1,000 $ 915 $ 548 $ (367) $ - CCC- 43 50 6.75 % 10.68 % 54.87 % U.S. Capital Funding I B3 3,000 2,891 1,986 (905) - C 29 33 7.95 % 6.45 % 11.81 % $ 4,000 $ 3,806 $ 2,534 $ (1,272) $ - (1) A 10% recovery is applied to all projected defaults by depository institutions. A 15% recovery is applied to all projected defaults by insurance companies. No recovery is applied to current defaults. (2) Excess subordination represents the additional defaults in excess of both current and projected defaults that the CDO can absorb before the bond experiences any credit impairment. Excess subordinated percentage is calculated by (a) determining what percentage of defaults a deal can experience before the bond has credit impairment, and (b) subtracting from this default breakage percentage both total current and expected future default percentages. |
Accumulated Other Comprehensi18
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Components of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income, included in stockholders’ equity, are as follows: March 31, December 31, 2016 2015 Net unrealized gain on securities available-for-sale $ 6,607 $ 3,311 Net unrealized loss on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income (905) (905) Net unrealized loss on derivative used for cash flow hedges (26) (1) Net unrealized loss relating to defined benefit plan liability (32) (32) 5,644 2,373 Tax expense 2,002 883 Net of tax amount $ 3,642 $ 1,490 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | The following table presents the reclassification adjustments out of accumulated other comprehensive income that were included in net income in the Consolidated Statements of Income for the three months ended March 31, 2016 and 2015. Amount Reclassified from Accumulated Other Comprehensive Income For the Three Months Ended March 31, Details about Accumulated Other Comprehensive Income Components 2016 2015 Affected Line Item in the Statements of Income Unrealized gains on available-for-sale securities Realized securities gains reclassified into income $ 118 $ 240 Other income - net realized gains on sale of available-for-sale securities Related income tax expense (40) (82) Income tax expense Total reclassifications for the period, net of tax $ 78 $ 158 |
Fair Values of Financial Inst19
Fair Values of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 on a recurring basis and level within the ASC 820 fair value hierarchy. Fair Value Measurements Using Fair Value Level 1 Level 2 Level 3 March 31, 2016 Mortgage-backed securities $ 106,559 $ - $ 106,559 $ - Collateralized mortgage obligations 83,873 - 83,873 - Municipal obligations 64,211 - 64,211 - Corporate obligations 11,528 - 8,994 2,534 Available-for-sale securities $ 266,171 $ - $ 263,637 $ 2,534 Fair Value Measurements Using Fair Value Level 1 Level 2 Level 3 December 31, 2015 Mortgage-backed securities $ 107,838 $ - $ 107,838 $ - Collateralized mortgage obligations 84,652 - 84,652 - Municipal obligations 57,188 - 57,188 - Corporate obligations 11,460 - 8,926 2,534 Available-for-sale securities $ 261,138 $ - $ 258,604 $ 2,534 |
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 three months ended March 31, 2016 and 2015 of recurring fair value measurements recognized in the accompanying balance sheet s using significant unobservable (Level 3) inputs: Three Months Ended March 31, 2016 2015 Beginning balance $ 2,534 $ 2,522 Total realized and unrealized gains (losses) Included in net income - - Included in other comprehensive income (loss) - - Purchases, issuances and settlements - - Ending balance $ 2,534 $ 2,522 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 |
Fair Value Measurement of Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the fair value measurement of assets measured on a nonrecurring basis and the level within the ASC 820 fair value hierarch y. 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. Fair Value Measurements Using Fair Value Level 1 Level 2 Level 3 December 31, 2015 Impaired loans $ 676 $ - $ - $ 676 |
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 : March 31, 2016 Fair Value Valuation Technique Unobservable Inputs Range Trust Preferred Securities $ 2,534 Discounted cash flow Discount rate 7.0 - 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 33.8 - 40.2 % December 31, 2015 Fair Value Valuation Technique Unobservable Inputs Range Trust Preferred Securities $ 2,534 Discounted cash flow Discount rate 7.0 - 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 33.8 - 40.2 % Impaired loans (collateral dependent) $ 676 Third party valuations Discount to reflect realizable value 20.0 - 50.0 % |
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 March 31, 2016 Carryi n g Amount Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 30,712 $ 30,712 $ 30,712 $ - $ - Interest-bearing time deposits 980 980 980 - - Loans held for sale 5,886 6,095 - 6,095 - Loans, net 1,074,221 1,073,638 - - 1,073,638 FHLB stock 10,482 10,482 - 10,482 - Interest receivable 3,962 3,962 - 3,962 - Liabilities Deposits 1,113,923 1,116,266 758,627 - 357,639 FHLB advances 218,617 220,523 - 220,523 - Other borrowings 9,279 9,305 - 9,305 - Interest payable 248 248 - 248 - Fair Value Measurements Using December 31, 2015 Carryi n g Amount Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 20,915 $ 20,915 $ 20,915 $ - $ - Loans held for sale 5,991 6,058 - 6,058 - Loans, net 1,068,204 1,056,357 - - 1,056,357 FHLB stock 10,482 10,482 - 10,482 - Interest receivable 4,201 4,201 - 4,201 - Liabilities Deposits 1,091,382 1,090,975 740,759 - 350,216 FHLB advances 225,617 224,621 - 224,621 - Other borrowings 9,458 9,459 - 9,459 - Interest payable 199 199 - 199 - |
Loans and Allowance (Tables)
Loans and Allowance (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Loans and Allowance [Abstract] | |
Schedule of Classes of Loans | Classes of loans at March 31, 2016 and December 31, 2015 include: March 31, December 31, 2016 2015 Real estate Commercial $ 248,893 $ 236,895 Commercial construction and development 18,039 15,744 Consumer closed end first mortgage 487,389 491,451 Consumer open end and junior liens 70,911 70,990 825,232 815,080 Other loans Consumer loans Auto 15,506 15,480 Boat/RVs 126,810 123,621 Other 5,785 6,171 Commercial and industrial 118,275 123,043 266,376 268,315 Total loans 1,091,608 1,083,395 Undisbursed loans in process (9,644) (7,432) Unamortized deferred loan costs, net 4,927 4,882 Allowance for loan losses (12,670) (12,641) Net loans $ 1,074,221 $ 1,068,204 |
Non-Accrual Loans Segregated by Class of Loans | Nonaccrual loans, segregated by class of loans, as of March 31, 2016 and December 31, 2015 are as follows: March 31, December 31, 2016 2015 Real estate Commercial $ 2,109 $ 2,356 Commercial construction and development 22 - Consumer closed end first mortgage 3,180 3,592 Consumer open end and junior liens 635 783 Consumer loans Auto 15 - Boat/RVs 90 81 Other 20 67 Commercial and industrial 2 25 Total nonaccrual loans $ 6,073 $ 6,904 |
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 March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 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 Past Due and Accruing Real estate Commercial $ 725 $ 149 $ 1,968 $ 2,842 $ 246,051 $ 248,893 $ - Commercial construction and development - - 2 2 18,037 18,039 - Consumer closed end first mortgage 5,607 2,189 3,319 11,115 476,274 487,389 385 Consumer open end and junior liens 222 202 635 1,059 69,852 70,911 - Consumer loans Auto 53 3 15 71 15,435 15,506 - Boat/RVs 534 101 77 712 126,098 126,810 - Other 121 18 20 159 5,626 5,785 - Commercial and industrial 50 36 - 86 118,189 118,275 - Total $ 7,312 $ 2,698 $ 6,036 $ 16,046 $ 1,075,562 $ 1,091,608 $ 385 December 31, 2015 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 Past Due and Accruing Real estate Commercial $ 922 $ 20 $ 2,212 $ 3,154 $ 233,741 $ 236,895 $ - Commercial construction and development - - - - 15,744 15,744 - Consumer closed end first mortgage 7,272 1,328 3,091 11,691 479,760 491,451 267 Consumer open end and junior liens 296 187 765 1,248 69,742 70,990 - Consumer loans Auto 89 - - 89 15,391 15,480 - Boat/RVs 1,135 102 71 1,308 122,313 123,621 - Other 89 14 62 165 6,006 6,171 - Commercial and industrial 192 383 5 580 122,463 123,043 - Total $ 9,995 $ 2,034 $ 6,206 $ 18,235 $ 1,065,160 $ 1,083,395 $ 267 |
Impaired Loans | The following tables present impaired loans as of and for the three month periods ended March 31, 2016 and 2015 and the year ended December 31, 2015 . There were no loans with a specific valuation allowance as of March 31, 2015. March 31, 2016 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized Loans without a specific valuation allowance Real estate Commercial $ 3,150 $ 3,150 $ - $ 3,172 $ 23 Commercial construction and development 859 859 - 934 12 Consumer closed end first mortgage 1,126 1,126 - 1,126 - Consumer open end and junior liens 485 485 - 483 - Commercial and industrial 208 208 - 212 - Loans with a specific valuation allowance Real estate Commercial 517 517 100 596 - Total Real estate Commercial $ 3,667 $ 3,667 $ 100 $ 3,768 $ 23 Commercial construction and development $ 859 $ 859 $ - $ 934 $ 12 Consumer closed end first mortgage $ 1,126 $ 1,126 $ - $ 1,126 $ - Consumer open end and junior liens $ 485 $ 485 $ - $ 483 $ - Commercial and industrial $ 208 $ 208 $ - $ 212 $ - Total $ 6,345 $ 6,345 $ 100 $ 6,523 $ 35 December 31, 2015 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized Loans without a specific valuation allowance Real estate Commercial $ 3,608 $ 3,608 $ - $ 4,115 $ 172 Commercial construction and development 595 595 - 735 31 Consumer closed end first mortgage 1,126 1,126 - 1,131 - Consumer open end and junior liens 481 481 - 381 - Commercial and industrial 214 214 - 423 2 Loans with a specific valuation allowance Real estate Commercial 676 676 100 793 20 Total Real estate Commercial $ 4,284 $ 4,284 $ 100 $ 4,908 $ 192 Commercial construction and development $ 595 $ 595 $ - $ 735 $ 31 Consumer closed end first mortgage $ 1,126 $ 1,126 $ - $ 1,131 $ - Consumer open end and junior liens $ 481 $ 481 $ - $ 381 $ - Commercial and industrial $ 214 $ 214 $ - $ 423 $ 2 Total $ 6,700 $ 6,700 $ 100 $ 7,578 $ 225 March 31, 2015 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment in Impaired Loans Interest Income Recognized Loans without a specific valuation allowance Real estate Commercial $ 5,225 $ 5,225 $ - $ 5,079 $ 56 Commercial construction and development 851 1,628 - 891 7 Consumer closed end first mortgage 1,138 1,138 - 1,138 - Consumer open end and junior liens 476 476 - 238 - Commercial and industrial 702 733 - 730 1 Total $ 8,392 $ 9,200 $ - $ 8,076 $ 64 |
Commercial and Retail Credit Exposure Credit Risk Profile by Internal Rating | March 31, 2016 Commercial Consumer Pass Special Mention Substandard Doubtful Pass Special Mention Substandard Total Real estate Commercial $ 236,382 $ 6,995 $ 5,483 $ 33 $ 248,893 Commercial construction and development 16,060 1,095 884 - 18,039 Consumer closed end first mortgage $ 481,227 $ - $ 6,162 487,389 Consumer open end and junior liens 70,200 - 711 70,911 Other loans Consumer loans Auto 15,491 - 15 15,506 Boat/RVs 126,662 - 148 126,810 Other 5,760 - 25 5,785 Commercial and industrial 114,787 3,295 193 - 118,275 $ 367,229 $ 11,385 $ 6,560 $ 33 $ 699,340 $ - $ 7,061 $ 1,091,608 December 31, 2015 Commercial Consumer Pass Special Mention Substandard Doubtful Pass Special Mention Substandard Total Real estate Commercial $ 226,439 $ 4,137 $ 6,319 $ - $ 236,895 Commercial construction and development 13,986 1,309 449 - 15,744 Consumer closed end first mortgage $ 484,658 $ - $ 6,793 491,451 Consumer open end and junior liens 70,086 - 904 70,990 Other loans Consumer loans Auto 15,480 - - 15,480 Boat/RVs 123,490 - 131 123,621 Other 6,097 - 74 6,171 Commercial and industrial 119,540 3,300 203 - 123,043 $ 359,965 $ 8,746 $ 6,971 $ - $ 699,811 $ - $ 7,902 $ 1,083,395 |
Activity in Allowance for Loan Losses by Portfolio Segment | The following table details activity in the allowance for loan losses by portfolio segment for the three month periods ended March 31, 2016 and 2015 , respectively. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other segments. Three Months Ended March 31, 2016 Commercial Mortgage Consumer Total Allowance for loan losses: Balance, beginning of period $ 7,090 $ 2,683 $ 2,868 $ 12,641 Provision charged to expense 120 62 18 200 Losses charged off (4) (120) (138) (262) Recoveries 2 4 85 91 Balance, end of period $ 7,208 $ 2,629 $ 2,833 $ 12,670 Three Months Ended March 31, 2015 Commercial Mortgage Consumer Total Allowance for loan losses: Balance, beginning of period $ 7,085 $ 3,471 $ 2,612 $ 13,168 Provision charged (credited) to expense (396) 188 208 - Losses charged off - (93) (117) (210) Recoveries 205 1 53 259 Balance, end of period $ 6,894 $ 3,567 $ 2,756 $ 13,217 The following tables provide a breakdown of the allowance for loans losses and loan portfolio balances by segment as of March 31, 2016 and December 31, 2015. Three Months Ended March 31, 2016 Commercial Mortgage Consumer Total Allowance balances Individually evaluated for impairment $ 100 $ - $ - $ 100 Collectively evaluated for impairment 7,108 2,629 2,833 12,570 Total allowance for loan losses $ 7,208 $ 2,629 $ 2,833 $ 12,670 Loan balances Individually evaluated for impairment $ 4,734 $ 1,126 $ 485 $ 6,345 Collectively evaluated for impairment 380,473 486,263 218,527 1,085,263 Gross loans $ 385,207 $ 487,389 $ 219,012 $ 1,091,608 Year Ended December 31, 2015 Commercial Mortgage Consumer Total Allowance balances Individually evaluated for impairment $ 100 $ - $ - $ 100 Collectively evaluated for impairment 6,990 2,683 2,868 12,541 Total allowance for loan losses $ 7,090 $ 2,683 $ 2,868 $ 12,641 Loan balances Individually evaluated for impairment $ 5,093 $ 1,126 $ 481 $ 6,700 Collectively evaluated for impairment 370,589 490,325 215,781 1,076,695 Gross loans $ 375,682 $ 491,451 $ 216,262 $ 1,083,395 |
Troubled Debts Restructured | The following tables describe troubled debts restructured during the three month periods ended March 31, 2016 and 2015: Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 No. of Loans Pre-Modification Recorded Balance Post-Modification Recorded Balance No. of Loans Pre-Modification Recorded Balance Post-Modification Recorded Balance Real estate Commercial - $ - $ - 2 $ 1,172 $ 1,170 Construction and development - - - 1 155 134 Consumer closed end first mortgage 5 419 428 3 156 154 Other loans Consumer loans Auto 1 4 4 - - - Boat/RVs 2 48 48 - - - Commercial and industrial 1 83 83 1 88 83 |
Newly Restructured Loans by Types | Newly restructured loans by type for the three months ended March 31, 2016 and 2015 are as follows: Three Months Ended March 31, 2016 Rate Term Combination Total Modification Real Estate Consumer closed end first mortgage $ - $ - $ 428 $ 428 Other loans Consumer loans Auto - - 4 4 Boat/RVs - 48 - 48 Commercial and industrial - 83 - 83 Three Months Ended March 31, 2015 Rate Term Combination Total Modification Real Estate Commercial $ - $ 1,170 $ - $ 1,170 Com m ercial construction and development - - 134 134 Consumer closed end first mortgage - - 154 154 Other loans Commercial and industrial - - 83 83 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from earnings per share computation | 37,161 | 37,161 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Basic Earnings Per Share | ||
Net income | $ 2,365 | $ 2,481 |
Weighted-Average Shares number of common shares, basic | 7,466,409 | 7,313,725 |
Earnings per share, basic | $ 0.32 | $ 0.34 |
Diluted Earnings Per Share | ||
Income available to common stockholders and assumed conversions | $ 2,365 | $ 2,481 |
Weighted-Average Shares, effect of dilutive securities stock option | 149,471 | 194,968 |
Weighted-Average Shares income available to common stockholders and assumed conversions, diluted | 7,615,880 | 7,508,693 |
Earnings per share, diluted | $ 0.31 | $ 0.33 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2011 | |
Investment [Line Items] | ||||
Fair value of investments reported at less than historical cost | $ 24,872,000 | $ 97,566,000 | ||
Percentage of Bank portfolio | 9.30% | 37.40% | ||
Proceeds from sales of securities - available for sale | $ 3,883,000 | $ 7,539,000 | ||
Gross realized gain on sale of securities | 118,000 | 240,000 | ||
Gross realized losses on sale of securities | $ 0 | $ 0 | ||
Percentage of recovery estimate depository institutions | 10.00% | |||
Percentage of recovery estimate insurance companies | 15.00% | |||
Pooled Trust Preferred Securities [Member] | ||||
Investment [Line Items] | ||||
Current par balance | $ 3,800,000 | |||
Original Par | $ 4,000,000 | $ 4,000,000 |
Investment Securities (Amortize
Investment Securities (Amortized Cost and Fair Values of Securities ) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 260,469 | $ 258,732 |
Gross Unrealized Gains | 7,258 | 4,881 |
Gross Unrealized Losses | (1,556) | (2,475) |
Fair Value | 266,171 | 261,138 |
Mortgage-backed Securities, Government Sponsored Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 104,097 | 106,524 |
Gross Unrealized Gains | 2,478 | 1,562 |
Gross Unrealized Losses | (16) | (248) |
Fair Value | 106,559 | 107,838 |
Collateralized Mortgage Obligations, Government Sponsored Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 82,835 | 84,976 |
Gross Unrealized Gains | 1,225 | 537 |
Gross Unrealized Losses | (187) | (861) |
Fair Value | 83,873 | 84,652 |
Municipals [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 60,731 | 54,427 |
Gross Unrealized Gains | 3,510 | 2,781 |
Gross Unrealized Losses | (30) | (20) |
Fair Value | 64,211 | 57,188 |
Corporate Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,806 | 12,805 |
Gross Unrealized Gains | 45 | 1 |
Gross Unrealized Losses | (1,323) | (1,346) |
Fair Value | $ 11,528 | $ 11,460 |
Investment Securities (Amorti25
Investment Securities (Amortized Cost and Fair Value of Available-for-Sale Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Security obligations due, amortized cost, One to five years | $ 10,002 | |
Security obligations due, amortized cost, Five to ten years | 3,099 | |
Security obligations due, amortized cost, After ten years | 60,436 | |
Total security obligations due, amortized cost | 73,537 | |
Available for sale, amortized cost | 260,469 | $ 258,732 |
Security obligations due, Fair value, One to five years | 10,031 | |
Security obligations due, Fair value, Five to ten years | 3,364 | |
Security obligations due, Fair value, After ten years | 62,344 | |
Total Security obligations due, Fair value | 75,739 | |
Investment securities available for sale (carried at fair value) | 266,171 | 261,138 |
Mortgage-backed Securities, Government Sponsored Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 104,097 | 106,524 |
Investment securities available for sale (carried at fair value) | 106,559 | 107,838 |
Collateralized Mortgage Obligations, Government Sponsored Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 82,835 | 84,976 |
Investment securities available for sale (carried at fair value) | $ 83,873 | $ 84,652 |
Investment Securities (Investme
Investment Securities (Investments Gross Unrealized Losses and Fair Value in Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | $ 8,623 | $ 73,270 |
Less than 12 months, Unrealized Losses | (96) | (621) |
12 months or more, Fair Value | 16,249 | 24,296 |
12 months or more, Unrealized Losses | (1,460) | (1,854) |
Total, Fair Value | 24,872 | 97,566 |
Total, Unrealized Losses | (1,556) | (2,475) |
Mortgage-backed Securities, Government Sponsored Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 1,390 | 38,649 |
Less than 12 months, Unrealized Losses | (16) | (248) |
Total, Fair Value | 1,390 | 38,649 |
Total, Unrealized Losses | (16) | (248) |
Collateralized Mortgage Obligations, Government Sponsored Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 27,457 | |
Less than 12 months, Unrealized Losses | (281) | |
12 months or more, Fair Value | 13,223 | 21,271 |
12 months or more, Unrealized Losses | (187) | (580) |
Total, Fair Value | 13,223 | 48,728 |
Total, Unrealized Losses | (187) | (861) |
Municipals [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 2,784 | 2,739 |
Less than 12 months, Unrealized Losses | (29) | (17) |
12 months or more, Fair Value | 492 | 491 |
12 months or more, Unrealized Losses | (1) | (3) |
Total, Fair Value | 3,276 | 3,230 |
Total, Unrealized Losses | (30) | (20) |
Corporate Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months, Fair Value | 4,449 | 4,425 |
Less than 12 months, Unrealized Losses | (51) | (75) |
12 months or more, Fair Value | 2,534 | 2,534 |
12 months or more, Unrealized Losses | (1,272) | (1,271) |
Total, Fair Value | 6,983 | 6,959 |
Total, Unrealized Losses | $ (1,323) | $ (1,346) |
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 ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Investment Securities [Abstract] | ||
Credit losses on debt securities held, beginning of period | $ 109 | $ 109 |
Reductions related to actual losses incurred | ||
Credit losses on debt securities held, end of period | $ 109 | $ 109 |
Investment Securities (Pooled T
Investment Securities (Pooled Trust Preferred Collateralized Debt Obligations) (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2016USD ($)item | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2011USD ($) | ||
Fair Value | $ 266,171 | $ 261,138 | |||
Unrealized loss | (1,556) | $ (2,475) | |||
Realized losses YTD | 118 | $ 240 | |||
Pooled Trust Preferred Securities [Member] | |||||
Original Par | 4,000 | $ 4,000 | |||
Book Value | 3,806 | ||||
Fair Value | 2,534 | ||||
Unrealized loss | $ (1,272) | ||||
Pooled Trust Preferred Securities [Member] | Alesco Preferred Funding IX [Member] | |||||
Class | A1 | ||||
Original Par | $ 1,000 | ||||
Book Value | 915 | ||||
Fair Value | 548 | ||||
Unrealized loss | $ (367) | ||||
Number of Banks / Insurance Cos. Currently Performing | item | 43 | ||||
Total Number of Banks and Insurance Cos. In Issuance (Unique) | item | 50 | ||||
Actual Deferrals/Defaults (as a % of original collateral) | 6.75% | ||||
Total Projected Defaults (as a % of performing collateral) | [1] | 10.68% | |||
Excess subordination (after taking into account best estimate of future deferrals/defaults) | [2] | 54.87% | |||
Pooled Trust Preferred Securities [Member] | U.S. Capital Funding I [Member] | |||||
Class | B3 | ||||
Original Par | $ 3,000 | ||||
Book Value | 2,891 | ||||
Fair Value | 1,986 | ||||
Unrealized loss | $ (905) | ||||
Number of Banks / Insurance Cos. Currently Performing | item | 29 | ||||
Total Number of Banks and Insurance Cos. In Issuance (Unique) | item | 33 | ||||
Actual Deferrals/Defaults (as a % of original collateral) | 7.95% | ||||
Total Projected Defaults (as a % of performing collateral) | [1] | 6.45% | |||
Excess subordination (after taking into account best estimate of future deferrals/defaults) | [2] | 11.81% | |||
Minimum [Member] | Pooled Trust Preferred Securities [Member] | Alesco Preferred Funding IX [Member] | |||||
Class | CCC- | ||||
Minimum [Member] | Pooled Trust Preferred Securities [Member] | U.S. Capital Funding I [Member] | |||||
Class | C | ||||
[1] | A 10% recovery is applied to all projected defaults by depository institutions. A 15% recovery is applied to all projected defaults by insurance companies. No recovery is applied to current defaults. | ||||
[2] | Excess subordination represents the additional defaults in excess of both current and projected defaults that the CDO can absorb before the bond experiences any credit impairment. Excess subordinated percentage is calculated by (a) determining what percentage of defaults a deal can experience before the bond has credit impairment, and (b) subtracting from this default breakage percentage both total current and expected future default percentages. |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Income (Components of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income [Abstract] | ||
Net unrealized gain on securities available-for-sale | $ 6,607 | $ 3,311 |
Net unrealized loss on securities available-for-sale for which a portion of an other-than-temporary impairment has been recognized in income | (905) | (905) |
Net unrealized loss on derivative used for cash flow hedges | (26) | (1) |
Net unrealized loss relating to defined benefit plan liability | (32) | (32) |
Accumulated other comprehensive income before tax | 5,644 | 2,373 |
Tax expense | 2,002 | 883 |
Net of tax amount | $ 3,642 | $ 1,490 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income (Reclassification out of Accumulated Other Comprehensive Income (Loss) Alternate) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Related income tax expense | $ (778) | $ (1,036) |
Reclassification out of AOCI [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||
Non-interest income | 118 | 240 |
Related income tax expense | (40) | (82) |
Net Income | $ 78 | $ 158 |
Fair Values of Financial Inst31
Fair Values of Financial Instruments (Fair Value Measurement of Assets Measured at Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 266,171 | $ 261,138 |
Mortgage-backed Securities, Government Sponsored Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 106,559 | 107,838 |
Collateralized Mortgage Obligations, Government Sponsored Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 83,873 | 84,652 |
Municipals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 64,211 | 57,188 |
Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 11,528 | $ 11,460 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ||
Fair Value, Inputs, Level 1 [Member] | 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 [Member] | 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 [Member] | Municipals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ||
Fair Value, Inputs, Level 1 [Member] | Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 263,637 | $ 258,604 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities, Government Sponsored Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 106,559 | 107,838 |
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations, Government Sponsored Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 83,873 | 84,652 |
Fair Value, Inputs, Level 2 [Member] | Municipals [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 64,211 | 57,188 |
Fair Value, Inputs, Level 2 [Member] | Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 8,994 | 8,926 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,534 | 2,534 |
Fair Value, Inputs, Level 3 [Member] | Corporate Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 2,534 | $ 2,534 |
Fair Values of Financial Inst32
Fair Values of Financial Instruments (Reconciliation of Recurring Fair Value Measurements Recognized in Balance Sheet using Significant Unobservable (Level Three) Inputs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Values of Financial Instruments [Abstract] | ||
Beginning balance | $ 2,534 | $ 2,522 |
Ending balance | 2,534 | 2,522 |
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 |
Fair Values of Financial Inst33
Fair Values of Financial Instruments (Fair Value Measurement of Assets Measured at Fair Value on Nonrecurring Basis) (Details) - Other Real Estate Owned/Foreclosed Real Estate [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of assets on nonrecurring basis | $ 676 |
Fair Value, Inputs, Level 1 [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 [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 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of assets on nonrecurring basis | $ 676 |
Fair Values of Financial Inst34
Fair Values of Financial Instruments (Quantitative Information about Unobservable Inputs used in Recurring and Nonrecurring Level Three Fair Value Measurements) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Pooled Trust Preferred Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 2,534 | $ 2,534 |
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 | 7.00% | 7.00% |
Probability of default | 1.70% | 1.70% |
Projected cures given deferral | 0.00% | 0.00% |
Loss severity | 33.80% | 33.80% |
Pooled Trust Preferred Securities [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Discount rate | 8.00% | 8.00% |
Probability of default | 1.80% | 1.80% |
Projected cures given deferral | 15.00% | 15.00% |
Loss severity | 40.20% | 40.20% |
Impaired loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 676 | |
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 | 20.00% | |
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 | 50.00% |
Fair Values of Financial Inst35
Fair Values of Financial Instruments (Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Carrying Amount [Member] | ||
Assets | ||
Cash and cash equivalents | $ 30,712 | $ 20,915 |
Interest-bearing deposits | 980 | |
Loans held for sale, fair value | 5,886 | 5,991 |
Loans, fair value | 1,074,221 | 1,068,204 |
FHLB stock, fair value | 10,482 | 10,482 |
Interest receivable, fair value | 3,962 | 4,201 |
Liabilities, fair value | ||
Deposits, fair value | 1,113,923 | 1,091,382 |
FHLB advances, fair value | 218,617 | 225,617 |
Other borrowings, fair value | 9,279 | 9,458 |
Interest payable, fair value | 248 | 199 |
Portion at Fair Value Measurement [Member] | ||
Assets | ||
Cash and cash equivalents | 30,712 | 20,915 |
Interest-bearing deposits | 980 | |
Loans held for sale, fair value | 6,095 | 6,058 |
Loans, fair value | 1,073,638 | 1,056,357 |
FHLB stock, fair value | 10,482 | 10,482 |
Interest receivable, fair value | 3,962 | 4,201 |
Liabilities, fair value | ||
Deposits, fair value | 1,116,266 | 1,090,975 |
FHLB advances, fair value | 220,523 | 224,621 |
Other borrowings, fair value | 9,305 | 9,459 |
Interest payable, fair value | 248 | 199 |
Fair Value, Inputs, Level 1 [Member] | Portion at Fair Value Measurement [Member] | ||
Assets | ||
Cash and cash equivalents | 30,712 | 20,915 |
Interest-bearing deposits | 980 | |
Liabilities, fair value | ||
Deposits, fair value | 758,627 | 740,759 |
Fair Value, Inputs, Level 2 [Member] | Portion at Fair Value Measurement [Member] | ||
Assets | ||
Loans held for sale, fair value | 6,095 | 6,058 |
FHLB stock, fair value | 10,482 | 10,482 |
Interest receivable, fair value | 3,962 | 4,201 |
Liabilities, fair value | ||
FHLB advances, fair value | 220,523 | 224,621 |
Other borrowings, fair value | 9,305 | 9,459 |
Interest payable, fair value | 248 | 199 |
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | ||
Assets | ||
Loans, fair value | 1,073,638 | 1,056,357 |
Liabilities, fair value | ||
Deposits, fair value | $ 357,639 | $ 350,216 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Loans [Abstract] | ||
Financing receivable, modifications, subsequent default, recorded investment | $ 0 | $ 0 |
Real estate held-for-sale | 712,000 | |
Mortgage loans in process of foreclosure, amount | $ 1,900,000 |
Loans (Categories of Loans) (De
Loans (Categories of Loans) (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 1,091,608,000 | $ 1,083,395,000 | ||
Undisbursed loans in process | (9,644,000) | (7,432,000) | ||
Unamortized deferred loan costs, net | 4,927,000 | 4,882,000 | ||
Allowance for loan losses | (12,670,000) | (12,641,000) | $ (13,217,000) | $ (13,168,000) |
Net loans | 1,074,221,000 | 1,068,204,000 | ||
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 248,893,000 | 236,895,000 | ||
Construction Loans [Member] | Commercial Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 18,039,000 | 15,744,000 | ||
First Mortgage [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 487,389,000 | 491,451,000 | ||
Second Mortgage [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 70,911,000 | 70,990,000 | ||
Automobile Loan [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 15,506,000 | 15,480,000 | ||
Boat/RVs [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 126,810,000 | 123,621,000 | ||
Other [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 5,785,000 | 6,171,000 | ||
Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 123,043,000 | |||
Commercial and Industrial [Member] | Commercial Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 118,275,000 | 123,043,000 | ||
Real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 825,232,000 | 815,080,000 | ||
Real estate | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 248,893,000 | 236,895,000 | ||
Real estate | Construction Loans [Member] | Commercial Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 18,039,000 | 15,744,000 | ||
Real estate | First Mortgage [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 487,389,000 | 491,451,000 | ||
Real estate | Second Mortgage [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 70,911,000 | 70,990,000 | ||
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 266,376,000 | 268,315,000 | ||
Other | Automobile Loan [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 15,506,000 | 15,480,000 | ||
Other | Boat/RVs [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 126,810,000 | 123,621,000 | ||
Other | Other [Member] | Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 5,785,000 | 6,171,000 | ||
Other | Commercial and Industrial [Member] | Commercial Segment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 118,275,000 | $ 123,043,000 |
Loans (Non-Accrual Loan, Segreg
Loans (Non-Accrual Loan, Segregated by Class of Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 6,073 | $ 6,904 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 2,109 | 2,356 |
Construction Loans [Member] | Commercial Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 22 | |
First Mortgage [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 3,180 | 3,592 |
Second Mortgage [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 635 | 783 |
Automobile Loan [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 15 | |
Boat/RVs [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 90 | 81 |
Other [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 20 | 67 |
Commercial and Industrial [Member] | Commercial Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 2 | $ 25 |
Loans (Age Analysis of Past Due
Loans (Age Analysis of Past Due Loans Segregated by Class of Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 16,046 | $ 18,235 |
Current | 1,075,562 | 1,065,160 |
Total loans receivable | 1,091,608 | 1,083,395 |
Total Loans > 90 Days or More and Accruing | 385 | 267 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,312 | 9,995 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,698 | 2,034 |
90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,036 | 6,206 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans receivable | 123,043 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,842 | 3,154 |
Current | 246,051 | 233,741 |
Total loans receivable | 248,893 | 236,895 |
Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 725 | 922 |
Commercial Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 149 | 20 |
Commercial Real Estate [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,968 | 2,212 |
Commercial Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2 | |
Current | 18,037 | 15,744 |
Total loans receivable | 18,039 | 15,744 |
Commercial Segment [Member] | Construction Loans [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2 | |
Commercial Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 86 | 580 |
Current | 118,189 | 122,463 |
Total loans receivable | 118,275 | 123,043 |
Commercial Segment [Member] | Commercial and Industrial [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 50 | 192 |
Commercial Segment [Member] | Commercial and Industrial [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 36 | 383 |
Commercial Segment [Member] | Commercial and Industrial [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5 | |
Consumer [Member] | First Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 11,115 | 11,691 |
Current | 476,274 | 479,760 |
Total loans receivable | 487,389 | 491,451 |
Total Loans > 90 Days or More and Accruing | 385 | 267 |
Consumer [Member] | First Mortgage [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,607 | 7,272 |
Consumer [Member] | First Mortgage [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,189 | 1,328 |
Consumer [Member] | First Mortgage [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,319 | 3,091 |
Consumer [Member] | Second Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,059 | 1,248 |
Current | 69,852 | 69,742 |
Total loans receivable | 70,911 | 70,990 |
Consumer [Member] | Second Mortgage [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 222 | 296 |
Consumer [Member] | Second Mortgage [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 202 | 187 |
Consumer [Member] | Second Mortgage [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 635 | 765 |
Consumer [Member] | Automobile Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 71 | 89 |
Current | 15,435 | 15,391 |
Total loans receivable | 15,506 | 15,480 |
Consumer [Member] | Automobile Loan [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 53 | 89 |
Consumer [Member] | Automobile Loan [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3 | |
Consumer [Member] | Automobile Loan [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 15 | |
Consumer [Member] | Boat/RVs [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 712 | 1,308 |
Current | 126,098 | 122,313 |
Total loans receivable | 126,810 | 123,621 |
Consumer [Member] | Boat/RVs [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 534 | 1,135 |
Consumer [Member] | Boat/RVs [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 101 | 102 |
Consumer [Member] | Boat/RVs [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 77 | 71 |
Consumer [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 159 | 165 |
Current | 5,626 | 6,006 |
Total loans receivable | 5,785 | 6,171 |
Consumer [Member] | Other [Member] | 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 121 | 89 |
Consumer [Member] | Other [Member] | 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 18 | 14 |
Consumer [Member] | Other [Member] | 90 Days or More Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 20 | $ 62 |
Loans (Impaired Loans) (Details
Loans (Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Impaired Financing Receivable With Related Allowance [Abstract] | |||
Recorded balance | $ 676 | ||
Unpaid principal balance | 676 | ||
Specific Allowance | $ 100 | 100 | |
Average investment in impaired loans | 793 | ||
Interest income recognized | 20 | ||
Impaired Financing Receivables Total [Abstract] | |||
Recorded balance, total | 6,345 | $ 8,392 | 6,700 |
Unpaid principal balance, total | 6,345 | 9,200 | 6,700 |
Average investment in impaired loans, total | 6,523 | 8,076 | 7,578 |
Interest income recognized, total | 35 | 64 | 225 |
Commercial Real Estate [Member] | |||
Impaired Financing Receivable With No Related Allowance [Abstract] | |||
Recorded balance | 3,150 | 5,225 | 3,608 |
Unpaid principal balance | 3,150 | 5,225 | 3,608 |
Average investment in impaired loans | 3,172 | 5,079 | 4,115 |
Interest income recognized | 23 | 56 | |
Impaired Financing Receivable With Related Allowance [Abstract] | |||
Recorded balance | 517 | ||
Unpaid principal balance | 517 | ||
Specific Allowance | 100 | 100 | |
Average investment in impaired loans | 596 | ||
Interest income recognized | 172 | ||
Impaired Financing Receivables Total [Abstract] | |||
Recorded balance, total | 3,667 | 4,284 | |
Unpaid principal balance, total | 3,667 | 4,284 | |
Average investment in impaired loans, total | 3,768 | 4,908 | |
Interest income recognized, total | 23 | 192 | |
Commercial Segment [Member] | Construction Loans [Member] | |||
Impaired Financing Receivable With No Related Allowance [Abstract] | |||
Recorded balance | 859 | 851 | 595 |
Unpaid principal balance | 859 | 1,628 | 595 |
Average investment in impaired loans | 934 | 891 | 735 |
Interest income recognized | 12 | 7 | |
Impaired Financing Receivable With Related Allowance [Abstract] | |||
Interest income recognized | 31 | ||
Impaired Financing Receivables Total [Abstract] | |||
Recorded balance, total | 859 | 595 | |
Unpaid principal balance, total | 859 | 595 | |
Average investment in impaired loans, total | 934 | 735 | |
Interest income recognized, total | 12 | 31 | |
Commercial Segment [Member] | Commercial and Industrial [Member] | |||
Impaired Financing Receivable With No Related Allowance [Abstract] | |||
Recorded balance | 208 | 702 | 214 |
Unpaid principal balance | 208 | 733 | 214 |
Average investment in impaired loans | 212 | 730 | 423 |
Interest income recognized | 1 | ||
Impaired Financing Receivable With Related Allowance [Abstract] | |||
Interest income recognized | 2 | ||
Impaired Financing Receivables Total [Abstract] | |||
Recorded balance, total | 208 | 214 | |
Unpaid principal balance, total | 208 | 214 | |
Average investment in impaired loans, total | 212 | 423 | |
Interest income recognized, total | 2 | ||
Consumer [Member] | First Mortgage [Member] | |||
Impaired Financing Receivable With No Related Allowance [Abstract] | |||
Recorded balance | 1,126 | 1,138 | 1,126 |
Unpaid principal balance | 1,126 | 1,138 | 1,126 |
Average investment in impaired loans | 1,126 | 1,138 | 1,131 |
Impaired Financing Receivables Total [Abstract] | |||
Recorded balance, total | 1,126 | 1,126 | |
Unpaid principal balance, total | 1,126 | 1,126 | |
Average investment in impaired loans, total | 1,126 | 1,131 | |
Consumer [Member] | Second Mortgage [Member] | |||
Impaired Financing Receivable With No Related Allowance [Abstract] | |||
Recorded balance | 485 | 476 | 481 |
Unpaid principal balance | 485 | 476 | 481 |
Average investment in impaired loans | 483 | $ 238 | 381 |
Impaired Financing Receivables Total [Abstract] | |||
Recorded balance, total | 485 | 481 | |
Unpaid principal balance, total | 485 | 481 | |
Average investment in impaired loans, total | $ 483 | $ 381 |
Loans (Commercial and Retail Cr
Loans (Commercial and Retail Credit Exposure Credit Risk Profile by Internal Rating) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 1,091,608 | $ 1,083,395 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 123,043 | |
Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 119,540 | |
Commercial and Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,300 | |
Commercial and Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 203 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 248,893 | 236,895 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 236,382 | 226,439 |
Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,995 | 4,137 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,483 | 6,319 |
Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 33 | |
Commercial Segment [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 367,229 | 359,965 |
Commercial Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,385 | 8,746 |
Commercial Segment [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,560 | 6,971 |
Commercial Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 33 | |
Commercial Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 18,039 | 15,744 |
Commercial Segment [Member] | Construction Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 16,060 | 13,986 |
Commercial Segment [Member] | Construction Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1,095 | 1,309 |
Commercial Segment [Member] | Construction Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 884 | 449 |
Commercial Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 118,275 | 123,043 |
Commercial Segment [Member] | Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 114,787 | |
Commercial Segment [Member] | Commercial and Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,295 | |
Commercial Segment [Member] | Commercial and Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 193 | |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 699,340 | 699,811 |
Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 7,061 | 7,902 |
Consumer [Member] | First Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 487,389 | 491,451 |
Consumer [Member] | First Mortgage [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 481,227 | 484,658 |
Consumer [Member] | First Mortgage [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,162 | 6,793 |
Consumer [Member] | Second Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 70,911 | 70,990 |
Consumer [Member] | Second Mortgage [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 70,200 | 70,086 |
Consumer [Member] | Second Mortgage [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 711 | 904 |
Consumer [Member] | Automobile Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 15,506 | 15,480 |
Consumer [Member] | Automobile Loan [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 15,491 | 15,480 |
Consumer [Member] | Automobile Loan [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 15 | |
Consumer [Member] | Boat/RVs [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 126,810 | 123,621 |
Consumer [Member] | Boat/RVs [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 126,662 | 123,490 |
Consumer [Member] | Boat/RVs [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 148 | 131 |
Consumer [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,785 | 6,171 |
Consumer [Member] | Other [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5,760 | 6,097 |
Consumer [Member] | Other [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 25 | $ 74 |
Loans (Activity in Allowance fo
Loans (Activity in Allowance for Loan Losses by Portfolio Segment) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses, Beginning of period | $ 12,641,000 | $ 13,168,000 | ||
Provision charged (credited) to expense | 200,000 | |||
Losses charged off | (262,000) | (210,000) | ||
Recoveries | 91,000 | 259,000 | ||
Allowance for loan losses, End of period | 12,670,000 | 13,217,000 | ||
Allowance for loan losses, individually evaluated for impairment, Ending balance | $ 100,000 | $ 100,000 | ||
Allowance for loan losses, collectively evaluated for impairment, Ending balance | 12,570,000 | 12,541,000 | ||
Total allowance for loan losses | 12,641,000 | 13,168,000 | 12,670,000 | 12,641,000 |
Loans, individually evaluated for impairment, Ending balance | 6,345,000 | 6,700,000 | ||
Loans, collectively evaluated for impairment, Ending balance | 1,085,263,000 | 1,076,695,000 | ||
Total loans receivable | 1,091,608,000 | 1,083,395,000 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses, Beginning of period | 7,090,000 | 7,085,000 | ||
Provision charged (credited) to expense | 120,000 | (396,000) | ||
Losses charged off | (4,000) | |||
Recoveries | 2,000 | 205,000 | ||
Allowance for loan losses, End of period | 7,208,000 | 6,894,000 | ||
Allowance for loan losses, individually evaluated for impairment, Ending balance | 100,000 | 100,000 | ||
Allowance for loan losses, collectively evaluated for impairment, Ending balance | 7,108,000 | 6,990,000 | ||
Total allowance for loan losses | 7,090,000 | 7,085,000 | 7,208,000 | 7,090,000 |
Loans, individually evaluated for impairment, Ending balance | 4,734,000 | 5,093,000 | ||
Loans, collectively evaluated for impairment, Ending balance | 380,473,000 | 370,589,000 | ||
Total loans receivable | 385,207,000 | $ 375,682,000 | ||
Mortgage [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses, Beginning of period | 2,683,000 | 3,471,000 | ||
Provision charged (credited) to expense | 62,000 | 188,000 | ||
Losses charged off | (120,000) | (93,000) | ||
Recoveries | 4,000 | 1,000 | ||
Allowance for loan losses, End of period | 2,629,000 | 3,567,000 | ||
Allowance for loan losses, individually evaluated for impairment, Ending balance | ||||
Allowance for loan losses, collectively evaluated for impairment, Ending balance | 2,629,000 | $ 2,683,000 | ||
Total allowance for loan losses | 2,683,000 | 3,471,000 | 2,629,000 | 2,683,000 |
Loans, individually evaluated for impairment, Ending balance | 1,126,000 | 1,126,000 | ||
Loans, collectively evaluated for impairment, Ending balance | 486,263,000 | 490,325,000 | ||
Total loans receivable | 487,389,000 | $ 491,451,000 | ||
Consumer Loan [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses, Beginning of period | 2,868,000 | 2,612,000 | ||
Provision charged (credited) to expense | 18,000 | 208,000 | ||
Losses charged off | (138,000) | (117,000) | ||
Recoveries | 85,000 | 53,000 | ||
Allowance for loan losses, End of period | 2,833,000 | 2,756,000 | ||
Allowance for loan losses, individually evaluated for impairment, Ending balance | ||||
Allowance for loan losses, collectively evaluated for impairment, Ending balance | 2,833,000 | $ 2,868,000 | ||
Total allowance for loan losses | $ 2,868,000 | $ 2,612,000 | 2,833,000 | 2,868,000 |
Loans, individually evaluated for impairment, Ending balance | 485,000 | 481,000 | ||
Loans, collectively evaluated for impairment, Ending balance | 218,527,000 | 215,781,000 | ||
Total loans receivable | $ 219,012,000 | $ 216,262,000 |
Loans (Troubled Debts Restructu
Loans (Troubled Debts Restructured) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)loan | Mar. 31, 2015USD ($)loan | |
Boat/RVs [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | |
Pre-Modification Outstanding Recorded Balance | $ 48 | |
Post-Modification Outstanding Recorded Balance | 48 | |
Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding Recorded Balance | $ 83 | $ 83 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 2 | |
Pre-Modification Outstanding Recorded Balance | $ 1,172 | |
Post-Modification Outstanding Recorded Balance | $ 1,170 | |
Commercial Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | |
Pre-Modification Outstanding Recorded Balance | $ 155 | |
Post-Modification Outstanding Recorded Balance | $ 134 | |
Consumer [Member] | First Mortgage [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 5 | 3 |
Pre-Modification Outstanding Recorded Balance | $ 419 | $ 156 |
Post-Modification Outstanding Recorded Balance | $ 428 | $ 154 |
Consumer [Member] | Automobile Loan [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | |
Pre-Modification Outstanding Recorded Balance | $ 4 | |
Post-Modification Outstanding Recorded Balance | 4 | |
Consumer [Member] | Boat/RVs [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Post-Modification Outstanding Recorded Balance | $ 48 | |
Consumer [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
No. of Loans | loan | 1 | 1 |
Pre-Modification Outstanding Recorded Balance | $ 83 | $ 88 |
Post-Modification Outstanding Recorded Balance | $ 83 | $ 83 |
Loans (Newly Restructured Loans
Loans (Newly Restructured Loans by Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Boat/RVs [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total modification | $ 48 | |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Rate | ||
Term | 83 | |
Combination | $ 83 | |
Total modification | 83 | $ 83 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Rate | ||
Term | $ 1,170 | |
Total modification | $ 1,170 | |
Commercial Segment [Member] | Construction Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Rate | ||
Combination | $ 134 | |
Total modification | $ 134 | |
Consumer [Member] | First Mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Rate | ||
Combination | 428 | $ 154 |
Total modification | 428 | 154 |
Consumer [Member] | Automobile Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Combination | 4 | |
Total modification | 4 | |
Consumer [Member] | Boat/RVs [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Term | 48 | |
Total modification | 48 | |
Consumer [Member] | Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total modification | $ 83 | $ 83 |