Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Mar. 17, 2014 | Jun. 30, 2013 |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'LANDMARK BANCORP INC | ' | ' |
Entity Central Index Key | '0001141688 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Trading Symbol | 'LARK | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 3,155,263 | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $48.90 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $29,735 | $14,920 |
Investment securities: | ' | ' |
Available-for-sale, at fair value | 300,246 | 213,300 |
Other securities | 5,271 | 5,238 |
Loans, net | 414,016 | 315,914 |
Loans held for sale, net | 7,864 | 7,163 |
Premises and equipment, net | 20,634 | 14,967 |
Bank owned life insurance | 17,342 | 16,701 |
Goodwill | 17,532 | 13,075 |
Other intangible assets, net | 4,811 | 2,394 |
Real estate owned, net | 400 | 2,444 |
Accrued interest and other assets | 10,904 | 7,951 |
Total assets | 828,755 | 614,067 |
Deposits: | ' | ' |
Non-interest bearing demand | 124,480 | 75,891 |
Money market and NOW | 307,014 | 190,309 |
Savings | 69,797 | 45,365 |
Time, $100,000 and greater | 60,242 | 59,035 |
Time, other | 125,953 | 111,900 |
Total deposits | 687,486 | 482,500 |
Federal Home Loan Bank borrowings | 35,689 | 38,426 |
Other borrowings | 33,055 | 21,541 |
Accrued interest, taxes, and other liabilities | 9,833 | 8,267 |
Total liabilities | 766,063 | 550,734 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par, 200,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par, 7,500,000 shares authorized; 3,140,577 and 3,068,389 shares issued and outstanding at December 31, 2013 and 2012, respectively | 31 | 29 |
Additional paid-in capital | 36,400 | 32,223 |
Retained earnings | 27,187 | 27,623 |
Accumulated other comprehensive (loss) income, net | -926 | 3,458 |
Total stockholders' equity | 62,692 | 63,333 |
Total liabilities and stockholders' equity | $828,755 | $614,067 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets [Parenthetical] (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 200,000 | 200,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 7,500,000 | 7,500,000 |
Common stock, shares issued | 3,140,577 | 3,068,389 |
Common stock, shares, outstanding | 3,140,577 | 3,068,389 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Loans: | ' | ' | ' | |||
Taxable | $16,699 | $16,345 | $17,108 | |||
Tax-exempt | 261 | 378 | 333 | |||
Investment securities: | ' | ' | ' | |||
Taxable | 2,801 | 2,940 | 2,748 | |||
Tax-exempt | 2,351 | 2,389 | 2,397 | |||
Total interest income | 22,112 | 22,052 | 22,586 | |||
Interest expense: | ' | ' | ' | |||
Deposits | 1,377 | 2,149 | 2,760 | |||
Borrowings | 1,704 | 1,761 | 1,899 | |||
Total interest expense | 3,081 | 3,910 | 4,659 | |||
Net interest income | 19,031 | 18,142 | 17,927 | |||
Provision for loan losses | 800 | 1,900 | 2,000 | |||
Net interest income after provision for loan losses | 18,231 | 16,242 | 15,927 | |||
Non-interest income: | ' | ' | ' | |||
Fees and service charges | 5,757 | 5,271 | 4,886 | |||
Gains on sales of loans, net | 3,777 | 5,680 | 2,775 | |||
Bank owned life insurance | 561 | 540 | 594 | |||
Other | 610 | 529 | 646 | |||
Total non-interest income | 10,705 | 12,020 | 8,901 | |||
Investment securities: | ' | ' | ' | |||
Net impairment losses | 0 | -63 | -72 | |||
Gains on sales of investment securities, net | 0 | 486 | 186 | |||
Investment securities gains, net | 0 | 423 | 114 | |||
Non-interest expense: | ' | ' | ' | |||
Compensation and benefits | 10,578 | 9,788 | 9,432 | |||
Occupancy and equipment | 3,333 | 2,990 | 2,874 | |||
Acquisition costs | 1,886 | 147 | 0 | |||
Professional fees | 1,102 | 961 | 1,434 | |||
Data processing | 992 | 842 | 753 | |||
Amortization of intangibles | 749 | 1,178 | 778 | |||
Federal deposit insurance premiums | 441 | 364 | 465 | |||
Advertising | 435 | 443 | 554 | |||
Foreclosure and real estate owned expense | 370 | 332 | 652 | |||
Other | 3,649 | 3,459 | 3,012 | |||
Total non-interest expense | 23,535 | 20,504 | 19,954 | |||
Earnings before income taxes | 5,401 | 8,181 | 4,988 | |||
Income tax expense | 746 | 1,814 | 504 | |||
Net earnings | $4,655 | $6,367 | $4,484 | |||
Earnings per share: | ' | ' | ' | |||
Basic (1) (in dollars per share) | $1.51 | [1] | $2.08 | [1] | $1.46 | [1] |
Diluted (1) (in dollars per share) | $1.49 | [1] | $2.06 | [1] | $1.46 | [1] |
[1] | All per share amounts have been adjusted to give effect to the 5% stock dividends paid during December 2013, 2012 and 2011. |
Consolidated_Statements_of_Ear1
Consolidated Statements of Earnings [Parenthetical] | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Percentage Of Stocks Dividend | 5.00% | 5.00% | 5.00% |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net earnings | $4,655 | $6,367 | $4,484 |
Net unrealized holding gains on available-for-sale securities for which a portion of an other-than-temporary impairment has been recorded in earnings | 0 | 327 | 190 |
Net unrealized holding (losses) gains on all other available-for-sale securities | -6,967 | -102 | 4,139 |
Less reclassification adjustment for gains included in earnings | 0 | -423 | -114 |
Net unrealized (losses) gains | -6,967 | -198 | 4,215 |
Income tax (benefit) expense | -2,583 | -77 | 1,558 |
Total comprehensive income | $271 | $6,246 | $7,141 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |
In Thousands | ||||||
Balance at Dec. 31, 2010 | $53,817 | $26 | $27,102 | $25,767 | $922 | |
Net earnings | 4,484 | 0 | 0 | 4,484 | 0 | |
Comprehensive income (loss) | 2,657 | 0 | 0 | 0 | 2,657 | |
Dividends paid | [1] | -2,014 | 0 | 0 | -2,014 | 0 |
Stock-based compensation | 107 | 0 | 107 | 0 | 0 | |
Exercise of stock options shares including excess tax benefit | 69 | 0 | 69 | 0 | 0 | |
stock dividend | 0 | 2 | 2,035 | -2,037 | 0 | |
Balance at Dec. 31, 2011 | 59,120 | 28 | 29,313 | 26,200 | 3,579 | |
Net earnings | 6,367 | 0 | 0 | 6,367 | 0 | |
Comprehensive income (loss) | -121 | 0 | 0 | 0 | -121 | |
Dividends paid | [1] | -2,121 | 0 | 0 | -2,121 | 0 |
Stock-based compensation | 82 | 0 | 82 | 0 | 0 | |
Exercise of stock options shares including excess tax benefit | 6 | 0 | 6 | 0 | 0 | |
stock dividend | 0 | 1 | 2,822 | -2,823 | 0 | |
Balance at Dec. 31, 2012 | 63,333 | 29 | 32,223 | 27,623 | 3,458 | |
Net earnings | 4,655 | 0 | 0 | 4,655 | 0 | |
Comprehensive income (loss) | -4,384 | 0 | 0 | 0 | -4,384 | |
Dividends paid | [1] | -2,243 | 0 | 0 | -2,243 | 0 |
Stock-based compensation | 58 | 0 | 58 | 0 | 0 | |
Exercise of stock options shares including excess tax benefit | 1,273 | 1 | 1,272 | 0 | 0 | |
stock dividend | 0 | 1 | 2,847 | -2,848 | 0 | |
Balance at Dec. 31, 2013 | $62,692 | $31 | $36,400 | $27,187 | ($926) | |
[1] | Dividends per share have been adjusted to give effect to the 5% stock dividends paid during December 2013, 2012 and 2011. |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity [Parenthetical] (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Dividends per share (in dollars per share) | $0.72 | [1] | $0.69 | [1] | $0.66 | [1] |
Exercise of stock options (in shares) | 69,062 | 554 | 5,228 | |||
Excess tax benefit related to stock option plans (in dollars) | $29 | $1 | $12 | |||
Stock Dividends (in shares) | 149,240 | 138,895 | 132,107 | |||
Stock Dividend Percentage | 5.00% | 5.00% | 5.00% | |||
[1] | Dividends per share have been adjusted to give effect to the 5% stock dividends paid during December 2013, 2012 and 2011. |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net earnings | $4,655 | $6,367 | $4,484 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' |
Provision for loan losses | 800 | 1,900 | 2,000 |
Valuation allowance on real estate owned | 135 | 175 | 517 |
Amortization of investment security premiums, net | 1,538 | 1,391 | 823 |
Amortization of intangibles | 749 | 1,178 | 778 |
Depreciation | 960 | 953 | 881 |
Bank owned life insurance | -561 | -540 | -594 |
Stock-based compensation | 58 | 82 | 107 |
Deferred income taxes | -418 | 227 | -793 |
Net gains on investment securities | 0 | -423 | -114 |
Net loss (gain) on sales of premises and equipment and foreclosed assets | 162 | -31 | -166 |
Net gains on sales of loans | -3,777 | -5,680 | -2,775 |
Proceeds from sale of loans | 167,207 | 218,046 | 123,431 |
Origination of loans held for sale | -160,661 | -209,775 | -117,834 |
Changes in assets and liabilities: | ' | ' | ' |
Accrued interest and other assets | 648 | -1,274 | -2 |
Accrued expenses, taxes, and other liabilities | 603 | -211 | 2,327 |
Net cash provided by operating activities | 12,098 | 12,385 | 13,070 |
Cash flows from investing activities: | ' | ' | ' |
Net (increase) decrease in loans | -3,833 | 7,192 | -6,436 |
Maturities and prepayments of investment securities | 43,400 | 50,348 | 55,002 |
Net cash received in bank acquisition | 25,028 | 3,965 | 0 |
Purchases of investment securities | -89,418 | -79,787 | -87,003 |
Proceeds from sales of investment securities | 6,878 | 28,967 | 6,494 |
Purchase of bank owned life insurance | 0 | 0 | -2,500 |
Proceeds from sales of premises and equipment and foreclosed assets | 1,997 | 497 | 2,317 |
Purchases of premises and equipment, net | -650 | -799 | -349 |
Net cash (used in) provided by investing activities | -16,598 | 10,383 | -32,475 |
Cash flows from financing activities: | ' | ' | ' |
Net increase (decrease) in deposits | 23,152 | -6,604 | 22,820 |
Federal Home Loan Bank advance borrowings | 81,100 | 51,922 | 210,650 |
Federal Home Loan Bank advance repayments | -83,837 | -62,659 | -205,787 |
Proceeds from other borrowings | 0 | 2,600 | 6,118 |
Repayments on other borrowings | -130 | -8,493 | -4,685 |
Proceeds from issuance of common stock under stock option plans | 1,244 | 5 | 57 |
Excess tax benefit related to stock option plans | 29 | 1 | 12 |
Payment of dividends | -2,243 | -2,121 | -2,014 |
Net cash provided by (used in) financing activities | 19,315 | -25,349 | 27,171 |
Net increase (decrease) in cash and cash equivalents | 14,815 | -2,581 | 7,766 |
Cash and cash equivalents at beginning of year | 14,920 | 17,501 | 9,735 |
Cash and cash equivalents at end of year | 29,735 | 14,920 | 17,501 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Cash paid during the year for income taxes | 800 | 2,322 | 103 |
Cash paid during the year for interest | 3,156 | 4,032 | 4,802 |
Supplemental schedule of noncash investing and financing activities: | ' | ' | ' |
Transfer of loans to real estate owned | 250 | 234 | 1,226 |
Bank acquisition: | ' | ' | ' |
Fair value of liabilities assumed | 169,333 | 35,061 | 0 |
Fair value of assets acquired | $194,361 | $31,096 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||
(1) Summary of Significant Accounting Policies | |||||||||||
Principles of Consolidation. The accompanying consolidated financial statements include the accounts of Landmark Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Landmark National Bank (the “Bank”). All intercompany balances and transactions have been eliminated in consolidation. The Bank, considered a single operating segment, is principally engaged in the business of attracting deposits from the general public and using such deposits, together with borrowings and other funds, to originate one-to-four family residential real estate, construction and land, commercial real estate, commercial, agriculture, municipal and consumer loans. | |||||||||||
Use of Estimates. The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses, valuation and impairment of real estate owned, valuation and impairment of investment securities, income taxes and goodwill. Actual results could differ from those estimates. | |||||||||||
Subsequent Events. The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that financial statements are filed for potential recognition or disclosure. Any material events that occur between the balance sheet date and filing date are disclosed as subsequent events while the consolidated financial statements are adjusted to reflect any conditions that exist at the balance sheet date. | |||||||||||
Business Combinations. At the date of acquisition the Company records the net assets of acquired companies on the consolidated balance sheet at their estimated fair value, and goodwill is recognized for the excess purchase price over the estimated fair value of acquired net assets. The results of operations for acquired companies are included in the Company’s consolidated statement of income beginning at the acquisition date. Expenses arising from the acquisition activities are recorded in the consolidated statement of income during the period incurred. | |||||||||||
Cash and cash equivalents. Cash and cash equivalents include cash on hand and amounts due from banks with original maturities of fewer than 90 days. | |||||||||||
Investment Securities. The Company has classified its investment securities portfolio as available-for-sale, with the exception of certain investments held for regulatory purposes. The Company carries its available-for-sale investment securities at fair value and employs valuation techniques which utilize quoted prices or observable inputs when those inputs are available. These observable inputs reflect assumptions that market participants use in pricing the security, developed based on market data obtained from sources independent of the Company. When such information is not available, the Company employs valuation techniques which utilize unobservable inputs, or those which reflect the Company’s own assumptions, based on the best information available in the circumstances. These valuation methods typically involve estimated cash flows and other financial modeling techniques. Changes in underlying factors, assumptions, estimates, or other inputs to the valuation techniques could have a material impact on the Company’s future financial condition and results of operations. Fair value measurements are classified as Level 1 (quoted prices), Level 2 (based on observable inputs) or Level 3 (based on significant unobservable inputs) and are discussed in more detail in Note 13 to the consolidated financial statements. Available-for-sale securities are recorded at fair value with unrealized gains and losses excluded from earnings and reported as a separate component of stockholders’ equity, net of taxes, until realized. Purchase premiums and discounts on investment securities are amortized/accreted into interest income over the estimated lives of the securities using the interest method. Realized gains and losses on sales of available-for-sale securities are recorded on a trade date basis and are calculated using the specific identification method. | |||||||||||
The Company performs quarterly reviews of the investment portfolio to determine if investment securities have any declines in fair value which might be considered other-than-temporary. The initial review begins with all securities in an unrealized loss position. The Company’s assessment of other-than-temporary impairment is based on its judgment of the specific facts and circumstances impacting each individual security at the time such assessments are made. The Company reviews and considers all factual information, including expected cash flows, the structure of the security, the credit quality of the underlying assets and the current and anticipated market conditions. Any credit-related impairment on debt securities is recorded through a charge to earnings. If an equity security is determined to be other-than-temporarily impaired, the entire impairment is recorded through a charge to earnings. | |||||||||||
Other investments included in the Company’s investment portfolio are investments acquired for regulatory purposes and borrowing availability and are accounted for at cost. The cost of such investments represents their redemption value as such investments do not have a readily determinable fair value. | |||||||||||
Acquired Loans. Acquired loans are recorded at estimated fair value at the time of acquisition and accounted for under either Accounting Standards Update (“ASU”) 310-30 or ASC 310, Receivables. Estimated fair values of acquired loans are based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, the expected timing of cash flows, classification status, fixed or variable interest rate, term of loan and whether or not the loan is amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Acquired loans are grouped together according to similar characteristics such as type of loan, loan purpose, geography, risk rating and underlying collateral and treated as distinct pools when applying various valuation techniques and, in certain circumstances, for the ongoing monitoring of the credit quality and performance of the pools. Discounts or premiums created when acquired loans are recorded at their estimated fair values are accreted or amortized over the remaining term of the loan as an adjustment to the related loan’s yield. Similar to originated loans described below, the accrual of interest income on acquired loans is discontinued when the collection of principal or interest, in whole or in part, is doubtful. | |||||||||||
Loans and Allowance for Loan Losses. Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances, net of undisbursed loan proceeds, the allowance for loan losses, and any deferred fees or costs on originated loans. Origination fees received on loans held in portfolio and the estimated direct costs of origination are deferred and amortized to interest income using the interest method. | |||||||||||
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value, determined on an aggregate basis. Net unrealized losses are recognized through a valuation allowance charged against earnings. Origination fees received and estimated direct costs on such loans are deferred and recognized as a component of the gain or loss on sale. If the Company retains servicing on a sold mortgage loan, servicing fees are recognized as they are collected and included in fees and service charges. | |||||||||||
The Company maintains an allowance for loan losses to absorb probable loan losses inherent in the loan portfolio. The allowance for loan losses is increased by charges to earnings and decreased by charge-offs (net of recoveries). Management’s periodic evaluation of the appropriateness of the allowance is based on the Bank’s loan loss experience over the prior twelve quarters, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, the current level of non-performing assets, and current economic conditions. The Company did not change the historical loan loss period used in the allowance for loan losses during 2013. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance is also subject to regulatory examinations and a determination by the regulatory agencies as to the appropriate level of the allowance. | |||||||||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining if a loan is impaired include payment status, probability of collecting scheduled principal and interest payments when due and value of collateral for collateral dependent loans. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. In addition, the Company classifies troubled debt restructurings (“TDR”) as impaired loans. A loan is classified as a TDR if the Company modifies a loan with any concessions, as defined by accounting guidance, to a borrower experiencing financial difficulty. The allowance recorded on impaired loans is measured on a loan-by-loan basis for commercial, commercial real estate, agriculture and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of homogeneous loans with smaller individual balances are collectively evaluated for impairment. Accordingly, the Company generally does not separately identify individual consumer and residential loans for impairment disclosures. | |||||||||||
The accrual of interest on non-performing loans is discontinued at the time the loan is ninety days delinquent, unless the credit is well-secured and in process of collection. Loans are placed on non-accrual or are charged off at an earlier date if collection of the principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual 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 evaluated individually and are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |||||||||||
The Company routinely sells one-to-four family residential mortgage loans to secondary mortgage market investors. Under standard representations and warranties clauses in the Company’s mortgage sale agreements, the Company may be required to repurchase mortgage loans sold or reimburse the investors for credit losses incurred on those loans if a breach of the contractual representations and warranties occurred. The Company establishes a mortgage repurchase liability in an amount equal to management’s estimate of losses on loans for which the Company could have a repurchase obligation or loss reimbursement. The estimated liability incorporates the volume of loans sold in previous periods, default expectations, historical investor repurchase demand and actual loss severity. Provisions to the mortgage repurchase reserve reduce gains on sales of loans. | |||||||||||
Premises and Equipment. Premises and equipment are stated at cost less accumulated depreciation. Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in earnings as incurred. | |||||||||||
Goodwill and Intangible Assets. Goodwill is not amortized; however, it is tested for impairment at each calendar year end or more frequently when events or circumstances dictate. The impairment test compares the carrying value of goodwill to an implied fair value of the goodwill, which is based on a review of the Company’s market capitalization adjusted for appropriate control premiums as well as an analysis of valuation multiples of recent, comparable acquisitions. The Company considers the result from each of these valuation methods in determining the implied fair value of its goodwill. A goodwill impairment would be recorded for the amount that the carrying value exceeds the implied fair value. | |||||||||||
Intangible assets include core deposit intangibles, lease intangibles and mortgage servicing rights. Core deposit intangible assets are amortized over their estimated useful life of ten years on an accelerated basis. Lease intangible assets are amortized over the life of the lease. When facts and circumstances indicate potential impairment, the Company will evaluate the recoverability of the intangible asset’s carrying value, using estimates of undiscounted future cash flows over the remaining asset life. Any impairment loss is measured by the excess of carrying value over fair value. Mortgage servicing assets are recognized as separate assets when rights are retained after the sale of financial assets, primarily one-to-four family real estate loans and are recorded at the lower of amortized cost or estimated fair value. Mortgage servicing rights are amortized into non-interest expense in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are recorded at the lower of amortized cost or estimated fair value and are evaluated for impairment based upon the fair value of the retained rights as compared to amortized cost stratified by maturity and interest rate. | |||||||||||
Income Taxes. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. Judgment is required in assessing the future tax consequences of events that have been recognized in financial statements or tax returns. Uncertain income tax positions will be recognized only if it is more likely than not that they will be sustained upon examination by taxing authorities, based upon their technical merits. Once that standard is met, the amount recorded will be the largest amount of benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense in the consolidated statements of earnings. The Company assesses deferred tax assets to determine if the items are more likely than not to be realized, and a valuation allowance is established for any amounts that are not more likely than not to be realized. Changes in estimates regarding the actual outcome of these future tax consequences, including the effects of taxing authority examinations, could materially impact the financial position and results of operations. | |||||||||||
Comprehensive Income. The Company’s comprehensive income consists of unrealized holding gains and losses on available-for-sale securities. | |||||||||||
Foreclosed Assets. Assets acquired through, or in lieu of, foreclosure are to be sold and are initially recorded at the date of foreclosure at fair value of the collateral less estimated selling costs through a gain or a charge to the allowance for loan losses, establishing a new cost basis. Subsequent to foreclosure, the Company records a charge to earnings if the carrying value of a property exceeds the fair value less estimated costs to sell. Revenue and expenses from operations and subsequent declines in fair value are included in other non-interest expense in the consolidated statement of earnings. | |||||||||||
Stock-Based Compensation. The Company has a stock-based employee compensation plan, which is described more fully in Note 12. The fair value of stock options awarded to employees is calculated through the use of an option pricing model, which requires subjective assumptions, including future stock price volatility and expected term, which greatly affect the estimated fair value. The Company uses the Black-Scholes option pricing model to estimate the grant date fair value of its stock options, which is recognized as compensation expense over the option vesting period, on a straight-line basis, which is typically four or five years. The fair value of restricted common stock is equal to the Company’s stock price on the grant date, which is recognized as compensation expense on a straight-line basis over the vesting period. | |||||||||||
Earnings per Share. Basic earnings per share represent net earnings divided by the weighted average number of common shares outstanding during the year. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to earnings that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method using the average market price of the Company’s stock for the respective periods. The diluted earnings per share computations for 2013 include all unexercised stock options, while the diluted earnings per share computation for the years ended December 31, 2012 and 2011 excludes unexercised stock options of 69,211 and 525,621, respectively, because their inclusion would have been anti-dilutive to earnings per share. | |||||||||||
The shares used in the calculation of basic and diluted earnings per share, which have been adjusted to give effect to the 5% common stock dividends paid by the Company in December 2013, 2012 and 2011, are shown below: | |||||||||||
(Dollars in thousands, except per share amounts) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Net earnings available to common shareholders | $ | 4,655 | $ | 6,367 | $ | 4,484 | |||||
Weighted average common shares outstanding - basic | 3,084,566 | 3,068,133 | 3,062,209 | ||||||||
Assumed exercise of stock options | 46,900 | 26,345 | - | ||||||||
Weighted average common shares outstanding - diluted | 3,131,466 | 3,094,477 | 3,062,209 | ||||||||
Earnings per share: | |||||||||||
Basic | $ | 1.51 | $ | 2.08 | $ | 1.46 | |||||
Diluted | $ | 1.49 | $ | 2.06 | $ | 1.46 | |||||
Derivative Financial Instruments. The Company is exposed to market risk, primarily relating to changes in interest rates. To manage the volatility relating to these exposures, the Company’s risk management policies permit its use of derivative financial instruments. The Company uses derivatives on a limited basis mainly to stabilize interest rate margins. The Company more often manages normal asset and liability positions by altering the terms of the products it offers. | |||||||||||
GAAP requires that all derivative financial instruments be recorded on the balance sheet at fair value. Derivatives that qualify in a hedging relationship can be designated, based on the exposure being hedged, as fair value or cash flow hedges. Under the cash flow hedging model, the effective portion of the change in the gain or loss related to the derivative is recognized as a component of other comprehensive income, net of taxes. The ineffective portion is recognized in current earnings. The Company had no derivative financial instruments designated as hedging instruments as of December 31, 2013 and 2012. | |||||||||||
The Company enters into interest rate lock commitments on certain mortgage loans, which are commitments to originate fixed rate one-to-four family residential real estate loans. The Company also has corresponding forward sales contracts related to these interest rate lock commitments. Both the mortgage loan commitments and the related forward sales contracts are accounted for as derivatives and carried at fair value with changes in fair value recorded in gains on sales of loans. Fair values are based upon quoted prices, and fair value measurements of interest rate commitments include the value of loan servicing rights. | |||||||||||
The Company may enter into interest rate swap transactions with loan customers. The interest rate risk on these swap transactions is managed by entering into offsetting interest rate swap agreements with various unaffiliated counterparties (“broker-dealers”). Both customer and broker-dealer related interest rate swaps are accounted for as derivatives and carried at fair value. | |||||||||||
Recent Accounting Developments. In December 2011, the Financial Accounting Standards Board (the “FASB”) issued ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Under ASU 2011-11, an entity is required to disclose both gross and net information about instruments and transactions eligible for offset in the balance sheet, as well as instruments and transactions subject to an agreement similar to a master netting agreement. ASU 2013-01: Balance Sheet (Topic 210) Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities was issued in January 2013, and amended ASU 2011-11 to specifically include only derivatives accounted for under Topic 815, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions that are either offset or subject to an enforceable master netting arrangement. Both ASUs were effective for annual and interim periods beginning January 1, 2013. Adoption of ASU 2011-11 and ASU 2013-01 did not have a significant impact on the Company’s consolidated financial statements. | |||||||||||
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments require an entity to present, either in the income statement or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. This ASU became effective for annual and interim periods beginning January 1, 2013. Adoption of ASU 2013-02 did not have a significant impact on the Company’s consolidated financial statements. | |||||||||||
In July 2013, the FASB issued ASU 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. These amendments allow the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the current benchmark rates of direct Treasury obligations of the U.S. government and London Interbank Offered Rate on swaps. The amendments were effective on a prospective basis for new or redesignated hedging relationships on July 17, 2013. Adoption of ASU 2013-10 did not have a significant impact on the Company’s consolidated financial statements. | |||||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exists. To eliminate diversity in practice, ASU 2013-11 provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This ASU is effective for annual and interim periods beginning after December 15, 2013. Adoption of ASU 2013-11 did not have a significant impact on the Company’s consolidated financial statements. | |||||||||||
In January 2014, the FASB issued ASU 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. These amendments require companies to disclose the amount of foreclosed residential real estate property held and the recorded investment in consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction. The ASU also defines when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The amendments are effective for interim and annual periods beginning January 1, 2015. The adoption of ASU 2014-04 is not expected to have a significant effect on the Company's consolidated financial statements. | |||||||||||
Acquisition
Acquisition | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Business Combinations [Abstract] | ' | ||||||||||
Business Combination Disclosure [Text Block] | ' | ||||||||||
(2) Acquisition | |||||||||||
The Company announced the completion of the acquisition, by its wholly-owned subsidiary, Landmark National Bank, of Citizens Bank, National Association (“Citizens Bank”) from First Capital Corporation (“First Capital”), effective November 1, 2013. The purchase price consisted of cash of $6.3 million. The acquisition was effected through the merger of Citizens Bank with and into the Bank. The acquisition added eight branches, located in Fort Scott, Iola, Kincaid, Lenexa, Mound City, Overland Park and Pittsburg, Kansas, to the Bank’s existing branch network, giving the Bank a total of 30 offices in 23 communities across Kansas. In addition, the Company assumed $5.2 million of subordinated debentures from First Capital for $5.0 million of cash, which resulted in a net purchase price of $1.3 million. | |||||||||||
The transaction was accounted for using the acquisition method of accounting, and as such, assets acquired and liabilities assumed were recorded at their estimated fair value on the acquisition date. Acquired loans were recorded at fair value at the acquisition date and no separate valuation allowance was established. Market value adjustments are accreted or amortized on a level yield basis over the expected term of the asset or liability. Additionally, the Company recorded a core deposit intangible of $1.7 million. The core deposit intangible is amortized on an accelerated basis over the estimated useful life of the deposits. Based on the estimated fair values, the Company recorded $4.5 million of goodwill. The acquisition created $5.5 million of tax deductible goodwill. The fair values assigned as of the acquisition date are subject to change if additional information becomes available during the measurement period. The Company incurred $1.9 million of acquisition related costs relating to the acquisition during 2013. | |||||||||||
The Company assumed subordinated debentures with principal outstanding of $5.2 million and fair value of $4.2 after a discount of $1.0 million. The initial fair value was determined with the assistance of a valuation specialist that discounted expected cash flows at appropriate rates. The discount will be accreted as interest expense on a level yield basis over the expected remaining term of the subordinated debentures. | |||||||||||
Results of the operations of the acquired business are included in the income statement from the effective date of the acquisition. | |||||||||||
The fair values of assets acquired and liabilities assumed, including fair value adjustments and purchase accounting entries are as follows: | |||||||||||
(Dollars in thousands) | As of November 1, 2013 | ||||||||||
Citizens | Fair value | Acquired | |||||||||
Bank | adjustments | balances | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 31,316 | $ | -6,288 | $ | 25,028 | |||||
Investment securities: | |||||||||||
Available-for-sale, at fair value | 56,720 | -941 | 55,779 | ||||||||
Other securities | 565 | - | 565 | ||||||||
Loans, net | 97,051 | -1,933 | 95,118 | ||||||||
Loans held for sale, net | 3,470 | - | 3,470 | ||||||||
Premises and equipment, net | 4,358 | 1,611 | 5,969 | ||||||||
Goodwill | - | 4,456 | 4,456 | ||||||||
Other intangible assets, net | 161 | 2,060 | 2,221 | ||||||||
Accrued interest and other assets | 1,720 | 35 | 1,755 | ||||||||
Total assets | $ | 195,361 | $ | -1,000 | $ | 194,361 | |||||
Liabilities and Stockholders’ Equity | |||||||||||
Liabilities: | |||||||||||
Total deposits | $ | 181,875 | $ | - | $ | 181,875 | |||||
Other borrowings | 7,489 | - | 7,489 | ||||||||
Subordinated debentures | 5,155 | -1,000 | 4,155 | ||||||||
Accrued interest, taxes, and other liabilities | 842 | - | 842 | ||||||||
Total liabilities | $ | 195,361 | $ | -1,000 | $ | 194,361 | |||||
Unaudited pro forma consolidated operating results for the years ended December 31, 2013 and December 31, 2012, as if the acquisition was consummated on January 1 of that year are as follows: | |||||||||||
(Dollars in thousands, except per share amounts) | Years ended December 31, | ||||||||||
2013 | 2012 | ||||||||||
Total interest income | $ | 29,055 | $ | 31,661 | |||||||
Net earnings | 6,537 | 8,038 | |||||||||
Earnings per share: | |||||||||||
Basic | 2.12 | 2.62 | |||||||||
Diluted | 2.09 | 2.6 | |||||||||
The Company completed the acquisition, by its wholly-owned subsidiary, Landmark National Bank, of The Wellsville Bank from Wellsville Bancshares, Inc., effective April 1, 2012. The purchase price consisted of cash of $3.7 million for 100% of The Wellsville Bank. The acquisition was effected through the merger of The Wellsville Bank with and into Landmark National Bank. The acquisition added one additional branch, located in Wellsville, Kansas, to the Company’s existing branch network, giving the Company a total of 22 offices in 17 communities across Kansas. | |||||||||||
The assets acquired and liabilities assumed were recorded by the Bank at their estimated fair value as of April 1, 2012 based on management’s best estimate using information available at the time. The acquisition included the assumption of investments of $14.2 million, loans of $15.0 million and deposits of $35.0 million. The unpaid contractual amount of the loans totaled $15.1 million. During the year ended December 31, 2012, the Company incurred $147,000 of acquisition related expenses. Based on estimates of the fair values of the net assets acquired, the Company recorded $181,000 of goodwill. The acquisition created $51,000 of tax deductible goodwill. | |||||||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | |||||||||||||
(3) Goodwill and Intangible Assets | ||||||||||||||
The Company tests goodwill for impairment annually or more frequently if circumstances warrant. The Company performed its annual step one impairment test as of December 31, 2013. The fair value of the Company’s single reporting unit was determined using the Company’s market capitalization adjusted for an appropriate control premium, as well as a review of valuation multiples of recent financial industry acquisitions for similar institutions, to estimate the fair value of the Company’s single reporting unit. The fair value was compared to the carrying value of the single reporting unit at the measurement date to determine if any impairment existed. Based on the results of the December 31, 2013 step one impairment test, the Company concluded its goodwill was not impaired. The Company can make no assurances that future impairment tests will not result in goodwill impairments. | ||||||||||||||
On November 1, 2013, the Company’s subsidiary, Landmark National Bank, assumed approximately $181.9 million in deposits in connection with the acquisition of Citizens Bank. The Company recorded a $1.7 million core deposit intangible asset in connection with the acquisition. The Company also recorded a lease intangible asset of $350,000 relating to the leased portion of an acquired branch. Lease intangible assets are amortized over the life of the lease. During 2012, the Company recorded a core deposit intangible asset of $308,000 as a result of the assumption of approximately $35.0 million in deposits in connection with the acquisition of The Wellsville Bank. Core deposit intangible assets are amortized over the estimated useful life of ten years on an accelerated basis. A summary of the other intangible assets that continue to be subject to amortization is as follows: | ||||||||||||||
(Dollars in thousands) | As of December 31, 2013 | |||||||||||||
Gross carrying | Accumulated | Valuation | Net carrying | |||||||||||
amount | amortization | allowance | amount | |||||||||||
Core deposit intangible assets | $ | 6,684 | $ | -4,592 | $ | - | $ | 2,092 | ||||||
Lease intangible asset | 350 | -8 | - | 342 | ||||||||||
Mortgage servicing rights | 3,866 | -1,489 | - | 2,377 | ||||||||||
Total other intangible assets | $ | 10,900 | $ | -6,089 | $ | - | $ | 4,811 | ||||||
As of December 31, 2012 | ||||||||||||||
Gross carrying | Accumulated | Valuation | Net carrying | |||||||||||
amount | amortization | allowance | amount | |||||||||||
Core deposit intangible assets | $ | 4,973 | $ | -4,258 | $ | - | $ | 715 | ||||||
Mortgage servicing rights | 3,038 | -1,147 | -212 | 1,679 | ||||||||||
Total other intangible assets | $ | 8,011 | $ | -5,405 | $ | -212 | $ | 2,394 | ||||||
As a result of a continual decline in mortgage rates during 2012, the Company recorded a $212,000 valuation allowance against its mortgage servicing rights. During 2013, a rise in mortgage rates increased the estimated fair value of these assets as it became less likely some of the loans the Company services will be refinanced. Based on the increase in estimated fair value, the Company reversed its valuation allowance during 2013. | ||||||||||||||
Estimated amortization expense for the years ending December 31 is as follows: | ||||||||||||||
(Dollars in thousands) | Amortization | |||||||||||||
expense | ||||||||||||||
2014 | $ | 1,169 | ||||||||||||
2015 | 1,055 | |||||||||||||
2016 | 954 | |||||||||||||
2017 | 793 | |||||||||||||
2018 | 253 | |||||||||||||
Thereafter | 587 | |||||||||||||
Total | $ | 4,811 | ||||||||||||
Investment_Securities
Investment Securities | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||
Marketable Securities [Text Block] | ' | ||||||||||||||||||||||
(4) Investment Securities | |||||||||||||||||||||||
A summary of investment securities available-for-sale is as follows: | |||||||||||||||||||||||
(Dollars in thousands) | As of December 31, 2013 | ||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||
Amortized | unrealized | unrealized | Estimated | ||||||||||||||||||||
cost | gains | losses | fair value | ||||||||||||||||||||
U. S. treasury securities | $ | 500 | $ | - | $ | - | $ | 500 | |||||||||||||||
U. S. federal agency obligations | 20,167 | 10 | -534 | 19,643 | |||||||||||||||||||
Municipal obligations, tax exempt | 90,700 | 1,712 | -619 | 91,793 | |||||||||||||||||||
Municipal obligations, taxable | 53,244 | 270 | -1,042 | 52,472 | |||||||||||||||||||
Mortgage-backed securities | 127,384 | 700 | -2,491 | 125,593 | |||||||||||||||||||
Common stocks | 602 | 501 | - | 1,103 | |||||||||||||||||||
Certificates of deposit | 9,142 | - | - | 9,142 | |||||||||||||||||||
Total | $ | 301,739 | $ | 3,193 | $ | -4,686 | $ | 300,246 | |||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||
Amortized | unrealized | unrealized | Estimated | ||||||||||||||||||||
cost | gains | losses | fair value | ||||||||||||||||||||
U. S. federal agency obligations | $ | 8,804 | $ | 50 | $ | -6 | $ | 8,848 | |||||||||||||||
Municipal obligations, tax exempt | 73,699 | 3,618 | -31 | 77,286 | |||||||||||||||||||
Municipal obligations, taxable | 37,334 | 818 | -10 | 38,142 | |||||||||||||||||||
Mortgage-backed securities | 81,113 | 889 | -154 | 81,848 | |||||||||||||||||||
Common stocks | 602 | 301 | -1 | 902 | |||||||||||||||||||
Certificates of deposit | 6,274 | - | - | 6,274 | |||||||||||||||||||
Total | $ | 207,826 | $ | 5,676 | $ | -202 | $ | 213,300 | |||||||||||||||
The tables above show that some of the securities in the available-for-sale investment portfolio had unrealized losses, or were temporarily impaired, as of December 31, 2013 and 2012. This temporary impairment represents the estimated amount of loss that would be realized if the securities were sold on the valuation date. Securities which were temporarily impaired are shown below, along with the length of the impairment period. | |||||||||||||||||||||||
(Dollars in thousands) | As of December 31, 2013 | ||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
No. of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||
securities | value | losses | value | losses | value | losses | |||||||||||||||||
U.S. federal agency obligations | 18 | $ | 16,028 | $ | -436 | $ | 2,149 | $ | -98 | 18,177 | -534 | ||||||||||||
Municipal obligations, tax exempt | 91 | 24,496 | -518 | 3,151 | -101 | 27,647 | -619 | ||||||||||||||||
Municipal obligations, taxable | 88 | 35,299 | -1,030 | 1,080 | -12 | 36,379 | -1,042 | ||||||||||||||||
Mortgage-backed securities | 70 | 89,140 | -2,491 | - | - | 89,140 | -2,491 | ||||||||||||||||
Total | 267 | $ | 164,963 | $ | -4,475 | $ | 6,380 | $ | -211 | $ | 171,343 | $ | -4,686 | ||||||||||
As of December 31, 2012 | |||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
No. of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||
securities | value | losses | value | losses | value | losses | |||||||||||||||||
U.S. federal agency obligations | 2 | $ | 2,241 | $ | -6 | $ | - | $ | - | 2,241 | -6 | ||||||||||||
Municipal obligations, tax exempt | 16 | 4,669 | -31 | - | - | 4,669 | -31 | ||||||||||||||||
Municipal obligations, taxable | 8 | 2,948 | -8 | 209 | -2 | 3,157 | -10 | ||||||||||||||||
Mortgage-backed securities | 24 | 27,974 | -154 | - | - | 27,974 | -154 | ||||||||||||||||
Common stocks | 1 | 21 | -1 | - | - | 21 | -1 | ||||||||||||||||
Total | 51 | $ | 37,853 | $ | -200 | $ | 209 | $ | -2 | $ | 38,062 | $ | -202 | ||||||||||
The Company’s U.S. federal agency portfolio consists of securities issued by the government-sponsored agencies of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Federal Home Loan Bank (“FHLB”). The receipt of principal and interest on U.S. federal agency obligations is guaranteed by the respective government-sponsored agency guarantor, such that the Company believes that its U.S. federal agency obligations do not expose the Company to credit-related losses. Based on these factors, along with the Company’s intent to not sell the securities and its belief that it is more likely than not that the Company will not be required to sell the securities before recovery of their cost basis, the Company believes that the U.S. federal agency obligations identified in the tables above are temporarily impaired. | |||||||||||||||||||||||
The Company’s portfolio of municipal obligations consists of both tax-exempt and taxable general obligations securities issued by various municipalities. As of December 31, 2013, the Company does not intend to sell and it is more likely than not that the Company will not be required to sell its municipal obligations in an unrealized loss position until the recovery of its cost. Due to the issuers’ continued satisfaction of the securities’ obligations in accordance with their contractual terms and the expectation that they will continue to do so, the evaluation of the fundamentals of the issuers’ financial condition and other objective evidence, the Company believes that the municipal obligations identified in the tables above are temporarily impaired. | |||||||||||||||||||||||
The Company’s mortgage-backed securities portfolio consists of securities underwritten to the standards of and guaranteed by the government-sponsored agencies of FHLMC, FNMA and the Government National Mortgage Association (“GNMA”). The receipt of principal, at par, and interest on mortgage-backed securities is guaranteed by the respective government-sponsored agency guarantor, such that the Company believes that its mortgage-backed securities do not expose the Company to credit-related losses. Based on these factors, along with the Company’s intent to not sell the securities and the Company’s belief that it is more likely than not that the Company will not be required to sell the securities before recovery of their cost basis, the Company believes that the mortgage-backed securities identified in the tables above are temporarily impaired. | |||||||||||||||||||||||
It is reasonably possible that the fair values of the Company’s investment securities could decline in the future if the overall economy and/or the financial condition of some of the issuers of these securities deteriorate and/or if the liquidity in markets for these securities declines. As a result, there is a risk that additional other-than-temporary impairments may occur in the future and any such amounts could be material to the Company’s consolidated financial statements. The fair value of the Company’s investment securities may also decline from an increase in market interest rates, as the market prices of these investments move inversely to their market yields. | |||||||||||||||||||||||
Maturities of investment securities at December 31, 2013 are as follows: | |||||||||||||||||||||||
(Dollars in thousands) | Amortized | Estimated | |||||||||||||||||||||
cost | fair value | ||||||||||||||||||||||
Due in less than one year | $ | 11,956 | $ | 12,057 | |||||||||||||||||||
Due after one year but within five years | 167,118 | 166,881 | |||||||||||||||||||||
Due after five years but within ten years | 90,324 | 89,370 | |||||||||||||||||||||
Due after ten years | 31,739 | 30,835 | |||||||||||||||||||||
Common stocks | 602 | 1,103 | |||||||||||||||||||||
Total | $ | 301,739 | $ | 300,246 | |||||||||||||||||||
The table above includes scheduled principal payments and estimated prepayments, based on observable market inputs, for mortgage-backed securities, where actual maturities will differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. | |||||||||||||||||||||||
Gross realized gains and losses on sales of available-for-sale securities are as follows: | |||||||||||||||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Realized gains | $ | - | $ | 795 | $ | 186 | |||||||||||||||||
Realized losses | - | -309 | - | ||||||||||||||||||||
Total | $ | - | $ | 486 | $ | 186 | |||||||||||||||||
At December 31, 2013, securities pledged to secure public funds on deposit, repurchase agreements and as collateral for borrowings had a carrying value of approximately $171.2 million. Except for U.S. federal agency obligations, no investment in a single issuer exceeded 10% of consolidated stockholders’ equity. | |||||||||||||||||||||||
Other investment securities primarily consist of restricted investments in FHLB and Federal Reserve Bank (“FRB”) stock. The carrying value of the FHLB stock at December 31, 2013 was $3.2 million compared to $3.4 million at December 31, 2012. The carrying value of the FRB stock at December 31, 2013 was $1.9 million compared to $1.8 million at December 31, 2012. These securities are not readily marketable and are required for regulatory purposes and borrowing availability. Since there are no available market values, these securities are carried at cost. Redemption of these investments at par value is at the option of the FHLB or FRB. Also included in other investment securities are other miscellaneous investments in the common stock of various correspondent banks which are held for borrowing purposes and totaled $111,000 and $113,000 at December 31, 2013 and December 31, 2012, respectively. The Company assessed the ultimate recoverability of these investments as of December 31, 2013 and believes that no impairment has occurred. | |||||||||||||||||||||||
Loans_and_Allowance_for_Loan_L
Loans and Allowance for Loan Losses | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |||||||||||||||||||||||||
(5) Loans and Allowance for Loan Losses | ||||||||||||||||||||||||||
Loans consist of the following: | ||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||||||||||||
One-to-four family residential real estate | $ | 125,087 | $ | 88,454 | ||||||||||||||||||||||
Construction and land | 23,776 | 23,435 | ||||||||||||||||||||||||
Commercial real estate | 119,390 | 88,790 | ||||||||||||||||||||||||
Commercial loans | 61,383 | 64,570 | ||||||||||||||||||||||||
Agriculture loans | 62,287 | 31,935 | ||||||||||||||||||||||||
Municipal loans | 8,846 | 9,857 | ||||||||||||||||||||||||
Consumer loans | 18,600 | 13,417 | ||||||||||||||||||||||||
Total gross loans | 419,369 | 320,458 | ||||||||||||||||||||||||
Net deferred loan costs and loans in process | 187 | 37 | ||||||||||||||||||||||||
Allowance for loan losses | -5,540 | -4,581 | ||||||||||||||||||||||||
Loans, net | $ | 414,016 | $ | 315,914 | ||||||||||||||||||||||
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet customers’ financing needs. These financial instruments consist principally of commitments to extend credit. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party is represented by the contractual amount of those instruments. In the normal course of business, there are various commitments and contingent liabilities, such as commitments to extend credit, letters of credit, and lines of credit, the balance of which are not recorded in the accompanying consolidated financial statements. The Company generally requires collateral or other security on unfunded loan commitments and irrevocable letters of credit. Unfunded commitments to extend credit, excluding standby letters of credit, aggregated to $69.1 million and $53.5 million at December 31, 2013 and 2012, respectively, and are generally at variable interest rates. Standby letters of credit totaled $1.6 million and $1.8 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||||
The Company is exposed to varying risks associated with concentrations of credit relating primarily to lending activities in specific geographic areas. The Company’s principal lending area consists of the cities of Auburn, Dodge City, Fort Scott, Garden City, Great Bend, Hoisington, Iola, Junction City, Kincaid, LaCrosse, Lawrence, Lenexa, Louisburg, Manhattan, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Topeka, Wamego and Wellsville, Kansas and the surrounding communities, and substantially all of the Company’s loans are to residents of or secured by properties located in its principal lending area. Accordingly, the ultimate collectability of the Company’s loan portfolio is dependent in part upon market conditions in those areas. These geographic concentrations are considered in management’s establishment of the allowance for loan losses. | ||||||||||||||||||||||||||
The following tables provide information on the Company’s allowance for loan losses by loan class and allowance methodology: | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||
One-to-four | Construction | Commercial | Commercial | Agriculture | Municipal | Consumer | Total | |||||||||||||||||||
family | and land | real estate | loans | loans | loans | loans | ||||||||||||||||||||
residential | ||||||||||||||||||||||||||
real estate | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 714 | $ | 1,214 | $ | 1,313 | $ | 707 | $ | 367 | $ | 107 | $ | 159 | $ | 4,581 | ||||||||||
Charge-offs | -93 | -53 | -11 | -200 | - | -65 | -194 | -616 | ||||||||||||||||||
Recoveries | 202 | 523 | - | 20 | - | - | 30 | 775 | ||||||||||||||||||
Provision for loan losses | -91 | -341 | 668 | 242 | 178 | 5 | 139 | 800 | ||||||||||||||||||
Balance at December 31, 2013 | 732 | 1,343 | 1,970 | 769 | 545 | 47 | 134 | 5,540 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Individually evaluated for loss | 82 | 234 | 140 | 488 | - | - | 7 | 951 | ||||||||||||||||||
Collectively evaluated for loss | 650 | 1,109 | 1,830 | 281 | 545 | 47 | 127 | 4,589 | ||||||||||||||||||
Total | 732 | 1,343 | 1,970 | 769 | 545 | 47 | 134 | 5,540 | ||||||||||||||||||
Loan balances: | ||||||||||||||||||||||||||
Individually evaluated for loss | 782 | 8,160 | 2,936 | 4,148 | - | 706 | 24 | 16,756 | ||||||||||||||||||
Collectively evaluated for loss | 124,305 | 15,616 | 116,454 | 57,235 | 62,287 | 8,140 | 18,576 | 402,613 | ||||||||||||||||||
Total | $ | 125,087 | $ | 23,776 | $ | 119,390 | $ | 61,383 | $ | 62,287 | $ | 8,846 | $ | 18,600 | $ | 419,369 | ||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||
One-to-four | Construction | Commercial | Commercial | Agriculture | Municipal | Consumer | Total | |||||||||||||||||||
family | and land | real estate | loans | loans | loans | loans | ||||||||||||||||||||
residential | ||||||||||||||||||||||||||
real estate | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 560 | $ | 928 | $ | 1,791 | $ | 745 | $ | 433 | $ | 130 | $ | 120 | $ | 4,707 | ||||||||||
Charge-offs | -70 | -1,749 | - | -70 | - | - | -238 | -2,127 | ||||||||||||||||||
Recoveries | 20 | 4 | - | 12 | 39 | - | 26 | 101 | ||||||||||||||||||
Provision for loan losses | 204 | 2,031 | -478 | 20 | -105 | -23 | 251 | 1,900 | ||||||||||||||||||
Balance at December 31, 2012 | 714 | 1,214 | 1,313 | 707 | 367 | 107 | 159 | 4,581 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Individually evaluated for loss | 165 | 388 | - | 268 | - | 65 | 15 | 901 | ||||||||||||||||||
Collectively evaluated for loss | 549 | 826 | 1,313 | 439 | 367 | 42 | 144 | 3,680 | ||||||||||||||||||
Total | 714 | 1,214 | 1,313 | 707 | 367 | 107 | 159 | 4,581 | ||||||||||||||||||
Loan balances: | ||||||||||||||||||||||||||
Individually evaluated for loss | 739 | 8,752 | 2,833 | 1,475 | 5 | 772 | 18 | 14,594 | ||||||||||||||||||
Collectively evaluated for loss | 87,715 | 14,683 | 85,957 | 63,095 | 31,930 | 9,085 | 13,399 | 305,864 | ||||||||||||||||||
Total | $ | 88,454 | $ | 23,435 | $ | 88,790 | $ | 64,570 | $ | 31,935 | $ | 9,857 | $ | 13,417 | $ | 320,458 | ||||||||||
Year ended December 31, 2011 | ||||||||||||||||||||||||||
One-to-four | Construction | Commercial | Commercial | Agriculture | Municipal | Consumer | Total | |||||||||||||||||||
family | and land | real estate | loans | loans | loans | loans | ||||||||||||||||||||
residential | ||||||||||||||||||||||||||
real estate | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Balance at December 31, 2010 | $ | 395 | $ | 1,193 | $ | 1,571 | $ | 1,173 | $ | 397 | $ | 99 | $ | 139 | $ | 4,967 | ||||||||||
Charge-offs | -110 | -1,173 | -434 | -590 | -1 | - | -132 | -2,440 | ||||||||||||||||||
Recoveries | 41 | 4 | 37 | 14 | 35 | - | 49 | 180 | ||||||||||||||||||
Provsion for loan losses | 234 | 904 | 617 | 148 | 2 | 31 | 64 | 2,000 | ||||||||||||||||||
Balance at December 31, 2011 | 560 | 928 | 1,791 | 745 | 433 | 130 | 120 | 4,707 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Individually evaluated for loss | 65 | 8 | - | 35 | - | 65 | 32 | 205 | ||||||||||||||||||
Collectively evaluated for loss | 495 | 920 | 1,791 | 710 | 433 | 65 | 88 | 4,502 | ||||||||||||||||||
Total | 560 | 928 | 1,791 | 745 | 433 | 130 | 120 | 4,707 | ||||||||||||||||||
Loan balances: | ||||||||||||||||||||||||||
Individually evaluated for loss | 1,280 | 225 | 17 | 78 | 63 | 784 | 43 | 2,490 | ||||||||||||||||||
Collectively evaluated for loss | 77,828 | 21,447 | 93,769 | 56,928 | 38,989 | 9,582 | 13,541 | 312,084 | ||||||||||||||||||
Total | $ | 79,108 | $ | 21,672 | $ | 93,786 | $ | 57,006 | $ | 39,052 | $ | 10,366 | $ | 13,584 | $ | 314,574 | ||||||||||
The Company’s key credit quality indicator is a loan’s performance status, defined as accruing or non-accruing. Performing loans are considered to have a lower risk of loss. Non-accrual loans are those which the Company believes have a higher risk of loss. The accrual of interest on non-performing loans is discontinued at the time the loan is ninety days delinquent, unless the credit is well secured and in process of collection. Loans are placed on non-accrual or are charged off at an earlier date if collection of principal or interest is considered doubtful. There were no loans ninety days delinquent and accruing interest at December 31, 2013 or December 31, 2012. The following tables present information on the Company’s past due and non-accrual loans by loan class: | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||
30-59 days | 60-89 days | 90 days or | Total past | Non-accrual | Total | |||||||||||||||||||||
delinquent | delinquent | more | due loans | loans | ||||||||||||||||||||||
and | and | delinquent | accruing | |||||||||||||||||||||||
accruing | accruing | and accruing | ||||||||||||||||||||||||
One-to-four family residential real estate | $ | 311 | $ | 793 | $ | - | $ | 1,104 | $ | 776 | $ | 1,880 | ||||||||||||||
Construction and land | 18 | - | - | 18 | 2,165 | 2,183 | ||||||||||||||||||||
Commercial real estate | - | 9 | - | 9 | 2,658 | 2,667 | ||||||||||||||||||||
Commercial loans | 187 | - | - | 187 | 4,148 | 4,335 | ||||||||||||||||||||
Agriculture loans | 23 | - | - | 23 | - | 23 | ||||||||||||||||||||
Municipal loans | - | - | - | - | 65 | 65 | ||||||||||||||||||||
Consumer loans | 85 | 11 | - | 96 | 24 | 120 | ||||||||||||||||||||
Total | $ | 624 | $ | 813 | $ | - | $ | 1,437 | $ | 9,836 | $ | 11,273 | ||||||||||||||
Percent of gross loans | 0.15 | % | 0.19 | % | 0 | % | 0.34 | % | 2.35 | % | 2.69 | % | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||
30-59 days | 60-89 days | 90 days or | Total past | Non-accrual | Total | |||||||||||||||||||||
delinquent | delinquent | more | due loans | loans | ||||||||||||||||||||||
and | and | delinquent | accruing | |||||||||||||||||||||||
accruing | accruing | and accruing | ||||||||||||||||||||||||
One-to-four family residential real estate | $ | 282 | $ | 1,362 | $ | - | $ | 1,644 | $ | 731 | $ | 2,375 | ||||||||||||||
Construction and land | 18 | - | - | 18 | 3,915 | 3,933 | ||||||||||||||||||||
Commercial real estate | 166 | 82 | - | 248 | 2,833 | 3,081 | ||||||||||||||||||||
Commercial loans | 62 | 17 | - | 79 | 1,475 | 1,554 | ||||||||||||||||||||
Agriculture loans | - | - | - | - | 5 | 5 | ||||||||||||||||||||
Municipal loans | - | - | - | - | 131 | 131 | ||||||||||||||||||||
Consumer loans | 142 | 65 | - | 207 | 18 | 225 | ||||||||||||||||||||
Total | $ | 670 | $ | 1,526 | $ | - | $ | 2,196 | $ | 9,108 | $ | 11,304 | ||||||||||||||
Percent of gross loans | 0.21 | % | 0.48 | % | 0 | % | 0.69 | % | 2.84 | % | 3.53 | % | ||||||||||||||
Under the original terms of the Company’s non-accrual loans, interest earned on such loans for the years 2013, 2012 and 2011, would have increased interest income by $511,000, $164,000 and $47,000, respectively. No interest income related to non-accrual loans was included in interest income for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||||
The Company’s impaired loans increased from $14.6 million at December 31, 2012 to $16.8 million at December 31, 2013. The difference between the unpaid contractual principal and the impaired loan balance is a result of charge-offs recorded against impaired loans. The difference in the Company’s non-accrual loan balances and impaired loan balances at December 31, 2013 and December 31, 2012, was related to TDRs that are current and accruing interest, but still classified as impaired. The following tables present information on impaired loans: | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||
Unpaid | Impaired | Impaired | Impaired | Related | Year-to- | Year-to- | ||||||||||||||||||||
contractual | loan | loans | loans with | allowance | date average | date interest | ||||||||||||||||||||
principal | balance | without an | an | recorded | loan balance | income | ||||||||||||||||||||
allowance | allowance | recognized | ||||||||||||||||||||||||
One-to-four family residential real estate | $ | 782 | $ | 782 | $ | 326 | $ | 456 | $ | 82 | $ | 800 | $ | - | ||||||||||||
Construction and land | 9,895 | 8,160 | 6,098 | 2,062 | 234 | 8,383 | 279 | |||||||||||||||||||
Commercial real estate | 2,936 | 2,936 | 278 | 2,658 | 140 | 3,046 | 18 | |||||||||||||||||||
Commercial loans | 187 | 4,148 | 4,115 | 33 | 488 | 192 | - | |||||||||||||||||||
Municipal loans | 772 | 706 | 706 | - | - | 772 | - | |||||||||||||||||||
Consumer loans | 24 | 24 | 6 | 18 | 7 | 26 | 20 | |||||||||||||||||||
Total impaired loans | $ | 14,596 | $ | 16,756 | $ | 11,529 | $ | 5,227 | $ | 951 | $ | 13,219 | $ | 317 | ||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||
Unpaid | Impaired | Impaired | Impaired | Related | Year-to- | Year-to- | ||||||||||||||||||||
contractual | loan | loans | loans with | allowance | date average | date interest | ||||||||||||||||||||
principal | balance | without an | an | recorded | loan balance | income | ||||||||||||||||||||
allowance | allowance | recognized | ||||||||||||||||||||||||
One-to-four family residential real estate | $ | 1,029 | $ | 739 | $ | 57 | $ | 682 | $ | 165 | $ | 767 | $ | 19 | ||||||||||||
Construction and land | 10,486 | 8,752 | 6,395 | 2,357 | 388 | 9,211 | 302 | |||||||||||||||||||
Commercial real estate | 2,833 | 2,833 | 2,833 | - | - | 3,352 | - | |||||||||||||||||||
Commercial loans | 1,475 | 1,475 | 395 | 1,080 | 268 | 1,621 | 3 | |||||||||||||||||||
Agriculture loans | 5 | 5 | 5 | - | - | 8 | - | |||||||||||||||||||
Municipal loans | 772 | 772 | 641 | 131 | 65 | 779 | 20 | |||||||||||||||||||
Consumer loans | 18 | 18 | 3 | 15 | 15 | 20 | - | |||||||||||||||||||
Total impaired loans | $ | 16,618 | $ | 14,594 | $ | 10,329 | $ | 4,265 | $ | 901 | $ | 15,758 | $ | 344 | ||||||||||||
At December 31, 2013, the Company had seven loan relationships consisting of eleven outstanding loans that were classified as TDRs compared to eight relationships consisting of thirteen outstanding loans at December 31, 2012. During 2013, the Company classified a $278,000 commercial real estate loan as a TDR after modifying the loan payments to interest only in order to allow the borrower additional time to liquidate the properties securing the loan. Since the loan was adequately secured, no impairment was recorded against the principal as of December 31, 2013. During 2012, the Company classified a commercial loan relationship consisting of two commercial loans as a TDR after agreeing to extend the maturity of the loans while the borrower liquidated the business assets securing the loans. The loans were repaid in the first quarter of 2013 and resulted in a net charge-off of $6,000. | ||||||||||||||||||||||||||
The Company evaluates each TDR individually and returns the loan to accrual status when a payment history is established after the restructuring and future payments are reasonably assured. There were no loans as of December 31, 2013 that had been modified as TDRs and then subsequently defaulted. At December 31, 2013, there were no commitments to lend additional funds to any loans classified as a TDR. As of December 31, 2013, the Company had $234,000 of allowance recorded against loans classified as TDRs compared to $521,000 recorded at December 31, 2012. | ||||||||||||||||||||||||||
The following table presents information on loans that are classified as TDRs: | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||
Number of | Non-accrual | Accruing | Number of | Non-accrual | Accruing | |||||||||||||||||||||
loans | balance | balance | loans | balance | balance | |||||||||||||||||||||
One-to-four family residential real estate | 1 | $ | - | $ | 6 | 2 | $ | 485 | $ | 8 | ||||||||||||||||
Construction and land | 7 | 627 | 5,995 | 7 | 2,240 | 4,837 | ||||||||||||||||||||
Commercial real estate | 1 | - | 278 | - | - | - | ||||||||||||||||||||
Commerical loans | - | - | - | 2 | 196 | - | ||||||||||||||||||||
Municipal loans | 2 | - | 641 | 2 | - | 641 | ||||||||||||||||||||
Total troubled debt restructurings | 11 | $ | 627 | $ | 6,920 | 13 | $ | 2,921 | $ | 5,486 | ||||||||||||||||
The Company services one-to-four family residential real estate loans for others with outstanding principal balances of $338.3 million and $263.5 million at December 31, 2013 and 2012, respectively. Gross service fee income related to such loans was $682,000, $550,000 and $429,000 for the years ended December 31, 2013, 2012 and 2011, respectively, and is included in fees and service charges in the consolidated statements of earnings. | ||||||||||||||||||||||||||
The Company had a mortgage repurchase reserve of $468,000 and $418,000 at December 31, 2013 and December 31, 2012, respectively, which represents the Company’s best estimate of probable losses that the Company will incur related to the repurchase of one-to-four family residential real estate loans previously sold or to reimburse investors for credit losses incurred on loans previously sold where a breach of the contractual representations and warranties occurred. Because the level of mortgage repurchase losses depends upon economic factors, investor demand strategies and other external conditions that may change over the life of the underlying loans, mortgage repurchase losses are difficult to estimate and require considerable judgment. The Company did not make any provisions to the reserve during 2013 and 2012. The Company did not incur any losses charged against the reserve during 2013 compared to $82,000 during 2012. As of December 31, 2013, the Company did not have any outstanding mortgage repurchase requests. | ||||||||||||||||||||||||||
The Company had loans to directors and officers, and to affiliated parties, at December 31, 2013 and 2012, which carry terms similar to those for other loans to persons unrelated to the Company or the Bank. Management believes such outstanding loans do not represent more than a normal risk of collection. A summary of such loans is as follows: | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 9,520 | ||||||||||||||||||||||||
New loans | 7,983 | |||||||||||||||||||||||||
Repayments | -4,094 | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 13,409 | ||||||||||||||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||||
(6) Premises and Equipment | ||||||||||
Premises and equipment consisted of the following: | ||||||||||
(Dollars in thousands) | Estimated | As of December 31, | ||||||||
useful lives | 2013 | 2012 | ||||||||
Land | Indefinite | $ | 6,056 | $ | 3,840 | |||||
Office buildings and improvements | 10 - 50 years | 17,734 | 14,045 | |||||||
Furniture and equipment | 3 - 15 years | 8,124 | 7,530 | |||||||
Automobiles | 2 - 5 years | 492 | 363 | |||||||
Total premises and equipment | 32,406 | 25,778 | ||||||||
Accumulated depreciation | -11,772 | -10,811 | ||||||||
Total premises and equipment, net | $ | 20,634 | $ | 14,967 | ||||||
Depreciation expense for the years ended December 31, 2013, 2012 and 2011 was $960,000 $953,000, and $881,000, respectively and was included in occupancy and equipment on the consolidated statements of earnings. | ||||||||||
Deposits
Deposits | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Banking and Thrift [Abstract] | ' | ||||||||||
Deposit Liabilities Disclosures [Text Block] | ' | ||||||||||
(7) Deposits | |||||||||||
The following table presents the maturities of certificates of deposit at December 31, 2013: | |||||||||||
(Dollars in thousands) | |||||||||||
Year | Amount | ||||||||||
2014 | $ | 122,891 | |||||||||
2015 | 35,224 | ||||||||||
2016 | 12,419 | ||||||||||
2017 | 10,295 | ||||||||||
2018 | 5,320 | ||||||||||
Thereafter | 46 | ||||||||||
Total | $ | 186,195 | |||||||||
The components of interest expense associated with deposits are as follows: | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Time deposits | $ | 1,172 | $ | 1,807 | $ | 2,341 | |||||
Money market and NOW | 188 | 313 | 371 | ||||||||
Savings | 17 | 29 | 48 | ||||||||
Total | $ | 1,377 | $ | 2,149 | $ | 2,760 | |||||
Regulations of the Federal Reserve require reserves to be maintained by all banking institutions according to the types and amounts of certain deposit liabilities. These requirements restrict a portion of the amounts shown as consolidated cash and due from banks from everyday usage in operation of the banks. As of December 31, 2013, the Bank did not have a minimum reserve requirement. | |||||||||||
Federal_Home_Loan_Bank_Borrowi
Federal Home Loan Bank Borrowings | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Banking and Thrift [Abstract] | ' | |||||||||||
Federal Home Loan Bank Advances, Disclosure [Text Block] | ' | |||||||||||
(8) Federal Home Loan Bank Borrowings | ||||||||||||
Term advances from the FHLB totaled $35.7 million at both December 31, 2013 and 2012. Maturities of such borrowings at December 31, 2013 and 2012 are summarized as follows: | ||||||||||||
(Dollars in thousands) | As of December 31, | |||||||||||
2013 | 2012 | |||||||||||
Year | Amount | Weighted | Amount | Weighted average rates | ||||||||
average rates | ||||||||||||
2017 | $ | 10,000 | 3.64 | % | $ | 10,000 | 3.64 | % | ||||
2018 | 25,689 | 3.39 | % | 25,726 | 3.39 | % | ||||||
Total | $ | 35,689 | $ | 35,726 | ||||||||
All of the Bank’s term advances with the FHLB have fixed rates and prepayment penalties. Additionally, the Bank also has a line of credit, renewable annually each September, with the FHLB under which there were no borrowings at December 31, 2013 compared to $2.7 million as of December 31, 2012. Interest on any outstanding balance on the line of credit accrues at the federal funds rate plus 0.15% (0.19% at December 31, 2013). | ||||||||||||
Although no loans are specifically pledged, the FHLB requires the Bank to maintain eligible collateral (qualifying loans and investment securities) that has a lending value at least equal to its required collateral. At December 31, 2013 and 2012, the Bank’s total borrowing capacity with the FHLB was approximately $50.2 million and $52.0 million, respectively. At December 31, 2013 and 2012, the Bank’s available borrowing capacity was $12.5 million and $13.5 million, respectively. The available borrowing capacity with the FHLB is collateral based, and the Bank’s ability to borrow is subject to maintaining collateral that meets the eligibility requirements. The borrowing capacity is not committed and is subject to FHLB credit requirements and policies. In addition, the Bank must maintain a restricted investment in FHLB stock to maintain access to borrowings. | ||||||||||||
Other_Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
(9) Other Borrowings | |
In 2003, the Company issued $8.2 million of subordinated debentures. These debentures, which are due in 2034 and are currently redeemable, were issued to a wholly owned grantor trust (the “Trust”) formed to issue preferred securities representing undivided beneficial interests in the assets of the Trust. The Trust then invested the gross proceeds of such preferred securities in the debentures. The Trust’s preferred securities and the subordinated debentures require quarterly interest payments and have variable rates, adjustable quarterly. Interest accrues at LIBOR plus 2.85%. The interest rates at December 31, 2013 and 2012 were 3.09% and 3.16%, respectively. | |
In 2005, the Company issued an additional $8.2 million of subordinated debentures. These debentures, which are due in 2036 and are currently redeemable, were issued to a wholly owned grantor trust (“Trust II”) formed to issue preferred securities representing undivided beneficial interests in the assets of Trust II. Trust II then invested the gross proceeds of such preferred securities in the debentures. Trust II’s preferred securities and the subordinated debentures require quarterly interest payments and have variable rates, adjustable quarterly. Interest accrues at LIBOR plus 1.34%. The interest rates at December 31, 2013 and 2012 were 1.58% and 1.65%, respectively. | |
In 2013, the Company assumed an additional $5.2 million of subordinated debentures from First Capital as part of the Bank’s acquisition of Citizens Bank. These debentures, which are due in 2036 and are currently redeemable, were issued by First Capital to a wholly owned grantor trust, First Capital (KS) Statutory Trust (“Trust III”) formed to issue preferred securities representing undivided beneficial interests in the assets of Trust III. Trust III’s preferred securities and the subordinated debentures require quarterly interest payments and have variable rates, adjustable quarterly. Interest accrues at LIBOR plus 1.62%. The interest rate at December 31, 2013 was 1.87%. Including the purchase accounting accretion, the effective interest rate was 5.75% at December 31, 2013. | |
While these trusts are accounted for as unconsolidated equity investments, a portion of the trust preferred securities issued by the trusts qualifies as Tier 1 Capital for regulatory purposes. | |
The Company has a $7.5 million line of credit from an unrelated financial institution maturing on November 1, 2014, with an interest rate that adjusts daily based on the prime rate plus 0.25%, but not less than 3.75%. This line of credit has covenants specific to capital and other financial ratios, which the Company was in compliance with at December 31, 2013. The Company did not have an outstanding balance on the line of credit at December 31, 2013 or 2012. | |
Repurchase agreements are comprised of non-insured customer funds, totaling $12.4 million at December 31, 2013 and $5.0 million at December 31, 2012 which are secured by $20.5 million and $8.1 million of the Bank’s investment portfolio at the same dates, respectively. Customer repurchase agreements are offered to deposit customers wishing to earn interest on highly liquid balances and are used by the Company as a funding source which is considered to be stable and short-term in nature. Most of the repurchase agreements have variable rates indexed to the 90-day U.S. treasury rate. Outstanding repurchase agreement balances averaged $8.1 million during 2013 and $4.7 million in 2012. The average rate on the repurchase agreements during 2013 was 0.21% compared to 0.45% during 2012. | |
At December 31, 2013 and 2012, the Bank had no borrowings through the Federal Reserve discount window, while the borrowing capacity was $14.8 million and $15.8 million, respectively. The Bank also has various other federal funds agreements, both secured and unsecured, with correspondent banks totaling approximately $50.0 million. As of December 31, 2013 and 2012, there were no borrowings through these correspondent bank federal funds agreements. | |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||
(10) Income Taxes | |||||||||||
Income tax expense attributable to income from operations consisted of: | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | 1,178 | $ | 1,413 | $ | 1,363 | |||||
State | -14 | 174 | -66 | ||||||||
Total current | 1,164 | 1,587 | 1,297 | ||||||||
Deferred: | |||||||||||
Federal | -375 | 209 | -700 | ||||||||
State | -43 | 18 | -93 | ||||||||
Total deferred | -418 | 227 | -793 | ||||||||
Income tax expense | $ | 746 | $ | 1,814 | $ | 504 | |||||
Total income tax expense (benefit), including amounts allocated directly to stockholders’ equity, was as follows: | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Income tax from operations | $ | 746 | $ | 1,814 | $ | 504 | |||||
Stockholders’ equity, recognition of tax benefit for stock options exercised | -29 | -1 | -12 | ||||||||
Stockholders’ equity, recognition of unrealized (losses)/gains on available-for-sale securities | -2,583 | -77 | 1,558 | ||||||||
$ | -1,866 | $ | 1,736 | $ | 2,050 | ||||||
The reasons for the difference between actual income tax expense (benefit) and expected income tax expense attributable to income from operations at the 34% statutory federal income tax rate were as follows: | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Computed “expected” tax expense | $ | 1,836 | $ | 2,782 | $ | 1,696 | |||||
(Reduction) increase in income taxes resulting from: | |||||||||||
Tax-exempt interest income, net | -861 | -906 | -890 | ||||||||
Bank owned life insurance | -201 | -195 | -199 | ||||||||
Reversal of unrecognized tax benefits, net | -207 | -132 | -182 | ||||||||
State income taxes, net of federal benefit | 169 | 259 | 77 | ||||||||
Investment tax credits | -26 | -35 | -43 | ||||||||
Other, net | 36 | 41 | 45 | ||||||||
$ | 746 | $ | 1,814 | $ | 504 | ||||||
The tax effects of temporary differences that give rise to the significant portions of the deferred tax assets and liabilities at the following dates were as follows: | |||||||||||
(Dollars in thousands) | As of December 31, | ||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets: | |||||||||||
Federal alternative minimum tax credit and low income housing credit carry forwards | $ | 1,955 | $ | 1,929 | |||||||
Loans, including allowance for loan losses | 2,292 | 1,793 | |||||||||
Unrealized loss on investment securities available-for-sale | 567 | - | |||||||||
Net operating loss carry forwards | 533 | 500 | |||||||||
State taxes | 450 | 421 | |||||||||
Intangible assets | 324 | - | |||||||||
Deferred compensation arrangements | 208 | 224 | |||||||||
Valuation allowance on other real estate | 42 | 213 | |||||||||
Investment impairments | 48 | 48 | |||||||||
Other, net | 61 | 84 | |||||||||
Total deferred tax assets | 6,480 | 5,212 | |||||||||
Deferred tax liabilities: | |||||||||||
Unrealized gain on investment securities available-for-sale | - | 2,016 | |||||||||
Premises and equipment, net of depreciation | 755 | 774 | |||||||||
FHLB stock dividends | 504 | 482 | |||||||||
Other borrowings | 329 | - | |||||||||
Intangible assets | - | 86 | |||||||||
Investments | 4 | - | |||||||||
Total deferred tax liabilities | 1,592 | 3,358 | |||||||||
Less valuation allowance | -533 | -500 | |||||||||
Net deferred tax asset | $ | 4,355 | $ | 1,354 | |||||||
The federal alternative minimum tax credit carry forward does not expire and totaled $1.6 million as of December 31, 2013. In addition, the Company has low income housing credit carry forwards of $345,000 which expire in varying amounts between 2026 and 2032. The Company has Kansas corporate net operating loss carry forwards totaling $11.0 million as of December 31, 2013, which expire between 2012 and 2024. The Company has recorded a valuation allowance against the Kansas corporate net operating loss carry forwards. A valuation allowance related to the remaining deferred tax assets has not been provided because management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets at December 31, 2013. | |||||||||||
Retained earnings at December 31, 2013 and 2012 includes approximately $6.3 million for which no provision for federal income tax had been made. This amount represents allocations of income to bad debt deductions in years prior to 1988 for tax purposes only. Reduction of amounts allocated for purposes other than tax bad debt losses will create income for tax purposes only, which will be subject to the then current corporate income tax rate. | |||||||||||
The Company has unrecognized tax benefits representing tax positions for which a liability has been established. A reconciliation of the beginning and ending amount of the liability relating to unrecognized tax benefits is as follows: | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | ||||||||||
Unrecognized tax benefits at beginning of year | $ | 986 | $ | 856 | |||||||
Gross increases to current year tax positions | 272 | 334 | |||||||||
Gross decreases to prior year’s tax positions | - | -5 | |||||||||
Lapse of statute of limitations | -314 | -199 | |||||||||
Unrecognized tax benefits at end of year | $ | 944 | $ | 986 | |||||||
Tax years that remain open and subject to audit include the years 2010 through 2013 for both federal and state tax purposes. The Company recognized $314,000 and $199,000 of previously unrecognized tax benefits during 2013 and 2012, respectively. The gross unrecognized tax benefits of $944,000 and $986,000 at December 31, 2013 and 2012, respectively, would favorably impact the effective tax rate by $623,000 and $651,000, respectively, if recognized. During 2013 and 2011, the Company recorded $9,000 and $71,000, respectively, of income tax benefit associated with interest and penalties compared to an income tax expense of $23,000 during 2012. As of December 31, 2013 and 2012, the Company has accrued interest and penalties related to the unrecognized tax benefits of $192,000 and $201,000, respectively which are not included in the table above. The Company believes that it is reasonably possible that a reduction in gross unrecognized tax benefits of up to $46,000 is possible during the next 12 months as a result of the lapse of the statute of limitations. | |||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
(11) Employee Benefit Plans | |
Employee Retirement Plan. Substantially all employees are covered under a 401(k) defined contribution savings plan. Eligible employees receive 100% matching contributions from the Company of up to 6% of their compensation. Matching contributions by the Company were $369,000, $355,000 and $350,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Deferred Compensation and Retirement Agreements. The Company has recognized a liability for future benefits payable under an agreement that splits the benefits of a bank owned life insurance policy between the Company and a former employee. At December 31, 2013 and 2012, the liability was $284,000 and $297,000, respectively. At December 31, 2013, the Company had an asset of $2.3 million recorded representing the net cash surrender value of the corresponding bank owned life insurance policy. | |
The Company has entered into deferred compensation and other retirement agreements with certain key employees that provide for cash payments to be made after their retirement. The obligations under these arrangements have been recorded at the present value of the accrued benefits. The Company has also entered into agreements with certain directors to defer portions of their compensation. The balance of accrued benefits under all of these arrangements, including the split-dollar life insurance arrangement, was $994,000 and $980,000 at December 31, 2013 and 2012, respectively, and was included as a component of other liabilities in the accompanying consolidated balance sheets. To assist in funding benefits under each of these plans, the Bank has purchased certain assets including bank owned life insurance policies on covered employees in which the Bank is the beneficiary. At December 31, 2013 and 2012, the cash surrender values on these policies established to meet such obligations were $4.1 million and $3.9 million, respectively. | |
In addition to these policies, the Bank purchased $7.5 million of bank owned life insurance policies during 2006 and $2.5 million during 2011. The cash surrender value of bank owned life insurance policies at December 31, 2013 totaled $13.2 million as compared to $12.8 million at December 31, 2012. These policies are not related to deferred compensation split-dollar arrangements or other retirement agreements but are utilized to offset the cost of employee benefits. | |
Stock_Compensation_Plan
Stock Compensation Plan | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||
(12) Stock Compensation Plan | |||||||||||||
The Company has a stock-based employee compensation plan which allows for the issuance of stock options and restricted common stock, the purpose of which is to provide additional incentive to certain officers, directors, and key employees by facilitating their purchase of a stock interest in the Company. The plan is administered by the compensation committee of the board of directors who approves employees to whom awards are granted and the number of shares granted. Compensation expense is recognized on a straight line basis over the vesting period, which is typically four or five years. The stock-based compensation cost related to these awards was $58,000, $82,000 and $107,000 for the years ended December 31, 2013, 2012 and 2011, respectively. The Company recognized tax benefits of $30,000, $6,000 and $23,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
For stock options, the exercise price may not be less than 100% of the fair market value of the shares on the date of the grant, and no option shall be exercisable subsequent to the contractual term of the award. In determining compensation cost, the Black-Scholes option-pricing model is used to estimate the fair value of options on the date of grant. The Black-Scholes model is a closed-end model that uses the assumptions outlined below. Expected volatility is based on historical volatility of the Company’s stock. The Company uses historical exercise behavior and other qualitative factors to estimate the expected term of the options, which represents the period of time that the options granted are expected to be outstanding. The risk-free rate for the expected term is based on U.S. Treasury rates in effect at the time of grant. | |||||||||||||
On April 20, 2011, the Company’s Compensation Committee awarded 8,600 shares of restricted common stock and options to acquire 59,131 shares of common stock. These awards vest ratably over four years. As a result, all awards available under the Company’s 2001 Stock Incentive Plan have been made. The fair value of options granted were estimated utilizing the following weighted average assumptions: | |||||||||||||
Years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Dividend rate | n/a | n/a | 6.33 | % | |||||||||
Volatility | n/a | n/a | 23.58 | % | |||||||||
Risk-free interest rate | n/a | n/a | 2.15 | % | |||||||||
Expected term | n/a | n/a | 5 years | ||||||||||
Fair value per option at grant date | n/a | n/a | $ | 1.59 | |||||||||
A summary of option activity during 2013 is presented below: | |||||||||||||
(Dollars in thousands, except per share amounts) | Weighted | Weighted | |||||||||||
average | average | ||||||||||||
exercise | remaining | Aggregate | |||||||||||
price | contractual | intrinsic | |||||||||||
Shares | per share | term | value | ||||||||||
Outstanding at December 31, 2012 | 487,331 | $ | 18.18 | 4.0 years | $ | 355 | |||||||
Effect of 5% stock dividend | 20,328 | $ | - | - | n/a | ||||||||
Forfeited/expired | -11,849 | $ | 19.18 | - | n/a | ||||||||
Exercised | -69,062 | $ | 16.21 | - | n/a | ||||||||
Outstanding at December 31, 2013 | 426,748 | $ | 17.23 | 3.4 years | $ | 1,011 | |||||||
Exercisable at December 31, 2013 | 396,289 | $ | 17.48 | 3.1 years | $ | 842 | |||||||
Vested and expected to vest at December 31, 2013 | 406,114 | $ | 17.23 | 3.4 years | $ | 961 | |||||||
A summary of nonvested option activity during 2013 is presented below: | |||||||||||||
Weighted | |||||||||||||
average | |||||||||||||
exercise | |||||||||||||
price | |||||||||||||
Shares | per share | ||||||||||||
Nonvested options at December 31, 2012 | 49,374 | $ | 14.94 | ||||||||||
Forfeited/expired | -1,517 | $ | 14.74 | ||||||||||
Vested | -18,205 | $ | 15.27 | ||||||||||
Effect of 5% stock dividend | 807 | ||||||||||||
Nonvested options at December 31, 2013 | 30,459 | $ | 14.04 | ||||||||||
Additional information about stock options exercised is presented below: | |||||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Intrinsic value of options exercised (on exercise date) | $ | 126 | $ | 2 | $ | 32 | |||||||
Cash received from options exercised | 1,244 | 5 | 57 | ||||||||||
Excess tax benefit realized from options exercised | $ | 29 | $ | 1 | $ | 12 | |||||||
As of December 31, 2013, there was $30,000 of total unrecognized compensation cost related to outstanding unvested options that will be recognized over the following periods: | |||||||||||||
(Dollars in thousands) | |||||||||||||
Year | Amount | ||||||||||||
2014 | $ | 22 | |||||||||||
2015 | 8 | ||||||||||||
Total | $ | 30 | |||||||||||
The value of the 8,600 shares of restricted common stock awarded during 2011 was based on a stock price of $16.25 per share on the date such shares were granted. These awards vest ratably over four years. As of December 31, 2013, there was $47,000 of total unrecognized compensation cost related to outstanding unvested restricted shares that will be recognized over the following periods: | |||||||||||||
(Dollars in thousands) | |||||||||||||
Year | Amount | ||||||||||||
2014 | $ | 35 | |||||||||||
2015 | 12 | ||||||||||||
Total | $ | 47 | |||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments and Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||
(13) Fair Value of Financial Instruments and Fair Value Measurements | |||||||||||||||||
The Company follows FASB ASC 820 “Fair Value Measurements and Disclosures,” which defines fair value, establishes a framework for measuring fair value and outlines the disclosures about fair value measurements. ASC Topic 820-10-55 requires the use of a hierarchy of fair value techniques based upon whether the inputs to those fair values reflect assumptions other market participants would use based upon market data obtained from independent sources or reflect the Company’s own assumptions of market participant valuation. The Company applies FASB ASC 820 to certain nonfinancial assets and liabilities, which include foreclosed real estate, long-lived assets, goodwill, mortgage servicing rights and core deposit premium, which are recorded at fair value only upon impairment. The fair value hierarchy is as follows: | |||||||||||||||||
• Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | |||||||||||||||||
• Level 2: Quoted prices for similar assets in active markets or quoted prices that contain observable inputs such as yield curves, volatilities, prepayment speeds and other inputs derived from market data. | |||||||||||||||||
• Level 3: Quoted prices in markets that are not active or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. | |||||||||||||||||
Fair value estimates of the Company’s financial instruments as of December 31, 2013 and 2012, including methods and assumptions utilized, are set forth below: | |||||||||||||||||
(Dollars in thousands) | As of December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||
amount | fair value | amount | fair value | ||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 29,735 | $ | 29,735 | $ | 14,920 | $ | 14,920 | |||||||||
Investment securities: | |||||||||||||||||
Available-for-sale | 300,246 | 300,246 | 213,300 | 213,300 | |||||||||||||
Other securities | 5,271 | 5,271 | 5,238 | 5,238 | |||||||||||||
Loans, net | 414,016 | 420,475 | 315,914 | 317,335 | |||||||||||||
Loans held for sale, net | 7,864 | 7,864 | 7,163 | 7,179 | |||||||||||||
Mortgage servicing rights | 2,377 | 3,491 | 1,679 | 1,859 | |||||||||||||
Derivative financial instruments | 265 | 265 | 334 | 334 | |||||||||||||
Accrued interest receivable | 2,581 | 2,581 | 2,589 | 2,589 | |||||||||||||
Financial liabilities: | |||||||||||||||||
Non-maturity deposits | $ | 501,291 | $ | 501,291 | $ | 311,565 | $ | 311,565 | |||||||||
Time deposits | 186,195 | 186,222 | 170,935 | 171,961 | |||||||||||||
FHLB borrowings | 35,689 | 38,087 | 38,426 | 42,904 | |||||||||||||
Other borrowings | 33,055 | 29,351 | 21,541 | 19,273 | |||||||||||||
Derivative financial instruments | 187 | 187 | 28 | 28 | |||||||||||||
Accrued interest payable | 335 | 335 | 410 | 410 | |||||||||||||
Methods and Assumptions Utilized | |||||||||||||||||
The carrying amount of cash and cash equivalents is considered to approximate fair value. | |||||||||||||||||
The Company’s investment securities classified as available-for-sale include U.S. federal agency securities, municipal obligations, mortgage-backed securities, certificates of deposits and common stocks. Quoted exchange prices are available for the Company’s U.S treasury securities and common stock investments, which are classified as Level 1. U.S. federal agency securities and mortgage-backed obligations are priced utilizing industry-standard models that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. These measurements are classified as Level 2. Municipal securities are valued using a type of matrix, or grid, pricing in which securities are benchmarked against U.S. treasury rates based on credit rating. These model and matrix measurements are classified as Level 2 in the fair value hierarchy. The Company’s investments in FDIC-insured, fixed-rate certificates of deposits are valued using a net present value model that discounts the future cash flows at the current market rates and are classified as Level 2. | |||||||||||||||||
The Company’s other investment securities include investments in FHLB and FRB stock, which are held for regulatory purposes. These investments generally have restrictions on the sale and/or liquidation of stock and the carrying value is approximately equal to fair value. Fair value measurements for these securities are classified as Level 3 based on the restrictions on sale and/or liquidation and related credit risk. | |||||||||||||||||
The estimated fair value of the Company’s loan portfolio is based on the segregation of loans by collateral type, interest terms, and maturities. The fair value is estimated based on discounting scheduled and estimated cash flows through maturity using an appropriate risk-adjusted yield curve to approximate current interest rates for each category. No adjustment was made to the interest rates for changes in credit risk of performing loans where there are no known credit concerns. Management segregates loans in appropriate risk categories. Management believes that the risk factor embedded in the interest rates along with the allowance for loan losses applicable to the performing loan portfolio results in a fair valuation of such loans. The fair values of impaired loans are generally based on market prices for similar assets determined through independent appraisals or discounted values of independent appraisals and brokers’ opinions of value. This method of estimating fair value does not incorporate the exit-price concept of fair value prescribed by ASC Topic 820. | |||||||||||||||||
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value, determined on an aggregate basis. The mortgage loan valuations are based on quoted secondary market prices for similar loans and are classified as Level 2. | |||||||||||||||||
The Company measures its mortgage servicing rights at the lower of amortized cost or fair value. Periodic impairment assessments are performed based on fair value estimates at the reporting date. The fair value of mortgage servicing rights are estimated based on a valuation model which calculates the present value of estimated future cash flows associated with servicing the underlying loans. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimated prepayment speeds, market discount rates, cost to service, and other servicing income, including late fees. The fair value measurements are classified as Level 3. | |||||||||||||||||
The carrying amount of accrued interest receivable and payable are considered to approximate fair value. | |||||||||||||||||
The estimated fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, savings, money market accounts, and NOW accounts, is equal to the amount payable on demand. The fair value of interest-bearing time deposits is based on the discounted value of contractual cash flows of such deposits. The discount rate is tied to the FHLB yield curve plus an appropriate servicing spread. Fair value measurements based on discounted cash flows are classified as Level 2. These fair values do not incorporate the value of core deposit intangibles which may be associated with the deposit base. | |||||||||||||||||
The fair value of advances from the FHLB and other borrowings is estimated using current yield curves for similar borrowings adjusted for the Company’s current credit spread and classified as Level 2. | |||||||||||||||||
The Company’s derivative financial instruments consist of interest rate lock commitments and corresponding forward sales contracts on mortgage loans held for sale. The fair values of these derivatives are based on quoted prices for similar loans in the secondary market. The market prices are adjusted by a factor, based on the Company’s historical data and its judgment about future economic trends, which considers the likelihood that a commitment will ultimately result in a closed loan. These instruments are classified as Level 2. The amounts are included in other assets or other liabilities on the consolidated balance sheets and gains on sale of loans, net in the consolidated statements of earnings. | |||||||||||||||||
The Company also includes interest rate swaps in derivative financial instruments. The fair values of these derivatives are based on valuation models that utilize readily observable market inputs. These instruments are classified as Level 2. The amounts are included in other assets or other liabilities on the consolidated balance sheets. | |||||||||||||||||
Off-Balance Sheet Financial Instruments | |||||||||||||||||
The fair value of letters of credit and commitments to extend credit is based on the fees currently charged to enter into similar agreements. The aggregate of these fees is not material. These instruments are also discussed in Note 16 on “Commitments, Contingencies and Guarantees.” | |||||||||||||||||
Transfers | |||||||||||||||||
The Company did not transfer any assets or liabilities among levels during the years ended December 31, 2013 or 2012. | |||||||||||||||||
Limitations | |||||||||||||||||
Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. | |||||||||||||||||
Valuation Methods for Financial Instruments Measured at Fair Value on a Recurring Basis | |||||||||||||||||
The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis at December 31, 2013 and 2012 allocated to the appropriate fair value hierarchy: | |||||||||||||||||
(Dollars in thousands) | As of December 31, 2013 | ||||||||||||||||
Fair value hierarchy | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
U. S. treasury securities | $ | 500 | $ | 500 | $ | - | $ | - | |||||||||
U. S. federal agency obligations | 19,643 | - | 19,643 | - | |||||||||||||
Municipal obligations, tax exempt | 91,793 | - | 91,793 | - | |||||||||||||
Municipal obligations, taxable | 52,472 | - | 52,472 | - | |||||||||||||
Mortgage-backed securities | 125,593 | - | 125,593 | - | |||||||||||||
Common stocks | 1,103 | 1,103 | - | - | |||||||||||||
Certificates of deposit | 9,142 | - | 9,142 | - | |||||||||||||
Derivative financial instruments | 265 | - | 265 | - | |||||||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments | 187 | - | 187 | - | |||||||||||||
As of December 31, 2012 | |||||||||||||||||
Fair value hierarchy | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
U. S. federal agency obligations | $ | 8,848 | $ | - | $ | 8,848 | $ | - | |||||||||
Municipal obligations, tax exempt | 77,286 | - | 77,286 | - | |||||||||||||
Municipal obligations, taxable | 38,142 | - | 38,142 | - | |||||||||||||
Mortgage-backed securities | 81,848 | - | 81,848 | - | |||||||||||||
Common stocks | 902 | 902 | - | - | |||||||||||||
Certificates of deposit | 6,274 | - | 6,274 | - | |||||||||||||
Derivative financial instruments | 334 | - | 334 | - | |||||||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments | 28 | - | 28 | - | |||||||||||||
Changes in the fair value of available-for-sale securities are included in other comprehensive income to the extent the changes are not considered other-than-temporary impairments. Other-than-temporary impairment tests are performed on a quarterly basis and any decline in the fair value of an individual security below its cost that is deemed to be other-than-temporary results in a write-down of that security’s cost basis. | |||||||||||||||||
Valuation Methods for Instruments Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
The Company does not value its loan portfolio at fair value. However, adjustments are recorded on certain loans to reflect the impaired value on the underlying collateral. Collateral values are reviewed on a loan-by-loan basis through independent appraisals. Appraised values may be discounted based on management’s historical knowledge, changes in market conditions and/or management’s expertise and knowledge of the client and the client’s business. Because many of these inputs are unobservable, the valuations are classified as Level 3. The carrying value of the Company’s impaired loans was $16.8 million and $14.6 million, with an allocated allowance of $951,000 and $901,000, at December 31, 2013 and December 31, 2012, respectively. | |||||||||||||||||
The Company’s measure of its goodwill is based on the Company’s market capitalization with appropriate control premiums and valuation multiples as compared to recent similar financial industry acquisition multiples to estimate the fair value of the Company’s single reporting unit. The fair value measurements are classified as Level 3. Core deposit intangibles are recognized when core deposits are acquired, using valuation techniques which calculate the present value of the estimated net cost savings relative to the Company’s alternative costs of funds over the expected remaining economic life of the deposits. Subsequent evaluations are made when facts or circumstances indicate potential impairment may have occurred. The models incorporate market discount rates, estimated average core deposit lives and alternative funding rates. The fair value measurements are classified as Level 3. | |||||||||||||||||
Real estate owned includes assets acquired through, or in lieu of, foreclosure and land previously acquired for expansion. Real estate owned is initially recorded at the fair value of the collateral less estimated selling costs. Subsequent valuations are updated periodically and are based upon independent appraisals, third party price opinions or internal pricing models and are classified as Level 3. | |||||||||||||||||
The following table represents the Company’s financial instruments that are measured at fair value on a non-recurring basis at December 31, 2013 and 2012 allocated to the appropriate fair value hierarchy: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Fair value hierarchy | Total gains | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | / (losses) | |||||||||||||
Assets: | |||||||||||||||||
Impaired loans | $ | 15,805 | $ | - | $ | - | $ | 15,805 | $ | -564 | |||||||
Loans held for sale, net | 7,864 | - | 7,864 | - | - | ||||||||||||
Mortgage servicing rights | 3,491 | - | - | 3,491 | 212 | ||||||||||||
Real estate owned, net | $ | 400 | $ | - | $ | - | $ | 400 | $ | -135 | |||||||
As of December 31, 2012 | |||||||||||||||||
Fair value hierarchy | Total gains | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | / (losses) | |||||||||||||
Assets: | |||||||||||||||||
Impaired loans | $ | 13,693 | $ | - | $ | - | $ | 13,693 | $ | -758 | |||||||
Loans held for sale, net | 7,179 | - | 7,179 | - | - | ||||||||||||
Mortgage servicing rights | 1,859 | - | - | 1,859 | -212 | ||||||||||||
Real estate owned, net | $ | 2,444 | $ | - | $ | - | $ | 2,444 | $ | -175 | |||||||
Regulatory_Capital_Requirement
Regulatory Capital Requirements | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Banking and Thrift [Abstract] | ' | |||||||||||||||||||||
Regulatory Capital Requirements under Banking Regulations [Text Block] | ' | |||||||||||||||||||||
(14) Regulatory Capital Requirements | ||||||||||||||||||||||
Current regulatory capital regulations require financial institutions (including banks and bank holding companies) to meet certain regulatory capital requirements. Institutions are required to have minimum leverage capital equal to 4% of total average assets and total qualifying capital equal to 8% of total risk-weighted assets in order to be considered “adequately capitalized.” As of December 31, 2013 and 2012, the Company and the Bank were rated “well capitalized,” which is the highest rating available under the regulatory capital regulations framework for prompt corrective action. Management believes that as of December 31, 2013, the Company and the Bank met all capital adequacy requirements to which they were subject. The following is a comparison of the Company’s regulatory capital to minimum capital requirements at December 31, 2013 and 2012: | ||||||||||||||||||||||
To be well-capitalized | ||||||||||||||||||||||
under prompt | ||||||||||||||||||||||
(Dollars in thousands) | For capital | corrective | ||||||||||||||||||||
Actual | adequacy purposes | action provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||
Leverage | $ | 58,605 | 7.89 | % | $ | 29,710 | 4 | % | $ | 37,137 | 4 | % | ||||||||||
Tier 1 Capital | $ | 58,605 | 11.61 | % | $ | 20,189 | 4 | % | $ | 30,283 | 4 | % | ||||||||||
Total Risk Based Capital | $ | 69,888 | 13.85 | % | $ | 40,378 | 8 | % | $ | 50,472 | 8 | % | ||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
Leverage | $ | 61,839 | 10.09 | % | $ | 24,504 | 4 | % | $ | 30,631 | 5 | % | ||||||||||
Tier 1 Capital | $ | 61,839 | 16.39 | % | $ | 15,092 | 4 | % | $ | 22,638 | 6 | % | ||||||||||
Total Risk Based Capital | $ | 67,273 | 17.83 | % | $ | 30,184 | 8 | % | $ | 37,731 | 10 | % | ||||||||||
The following is a comparison of the Bank’s regulatory capital to minimum capital requirements at December 31, 2013 and 2012: | ||||||||||||||||||||||
To be well-capitalized | ||||||||||||||||||||||
under prompt | ||||||||||||||||||||||
(Dollars in thousands) | For capital | corrective | ||||||||||||||||||||
Actual | adequacy purposes | action provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||
Leverage | $ | 62,553 | 8.46 | % | $ | 29,565 | 4 | % | $ | 36,956 | 5 | % | ||||||||||
Tier 1 Capital | $ | 62,553 | 12.43 | % | $ | 20,133 | 4 | % | $ | 30,200 | 6 | % | ||||||||||
Total Risk Based Capital | $ | 68,243 | 13.56 | % | $ | 40,267 | 8 | % | $ | 50,333 | 10 | % | ||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
Leverage | $ | 60,463 | 9.9 | % | $ | 24,433 | 4 | % | $ | 30,541 | 5 | % | ||||||||||
Tier 1 Capital | $ | 60,463 | 16.09 | % | $ | 15,029 | 4 | % | $ | 22,543 | 6 | % | ||||||||||
Total Risk Based Capital | $ | 65,124 | 17.33 | % | $ | 30,057 | 8 | % | $ | 37,571 | 10 | % | ||||||||||
Parent_Company_Condensed_Finan
Parent Company Condensed Financial Statements | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Parent Company Condensed Financial Statements [Abstract] | ' | ||||||||||
Parent Company Condensed Financial Statements [Text Block] | ' | ||||||||||
(15) Parent Company Condensed Financial Statements | |||||||||||
The following is condensed financial information of the parent company as of December 31, 2013 and 2012, and for the years ended December 31, 2013, 2012 and 2011: | |||||||||||
Condensed Balance Sheets | |||||||||||
(Dollars in thousands) | As of December 31, | ||||||||||
2013 | 2012 | ||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 649 | $ | 855 | |||||||
Investment securities | 1,366 | 1,194 | |||||||||
Investment in Bank | 80,975 | 77,121 | |||||||||
Other | 504 | 781 | |||||||||
Total assets | $ | 83,494 | $ | 79,951 | |||||||
Liabilities and stockholders’ equity: | |||||||||||
Other borrowings | $ | 20,684 | $ | 16,496 | |||||||
Other | 118 | 122 | |||||||||
Stockholders’ equity | 62,692 | 63,333 | |||||||||
Total liabilities and stockholders’ equity | $ | 83,494 | $ | 79,951 | |||||||
Condensed Statements of Earnings | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Dividends from Bank | $ | 1,180 | $ | 4,978 | $ | 4,723 | |||||
Interest income | 27 | 27 | 21 | ||||||||
Other non-interest income | 7 | 7 | 7 | ||||||||
Gain on sale of investment securities | - | 9 | - | ||||||||
Interest expense | -446 | -495 | -607 | ||||||||
Other expense, net | -309 | -262 | -341 | ||||||||
Earnings before equity in undistributed earnings of Bank | 459 | 4,264 | 3,803 | ||||||||
Increase in undistributed equity of Bank | 3,948 | 1,858 | 367 | ||||||||
Earnings before income taxes | 4,407 | 6,122 | 4,170 | ||||||||
Income tax benefit | -248 | -245 | -314 | ||||||||
Net earnings | $ | 4,655 | $ | 6,367 | $ | 4,484 | |||||
Condensed Statements of Cash Flows | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | 4,655 | $ | 6,367 | $ | 4,484 | |||||
Increase in undistributed equity of Bank | -3,948 | -1,858 | -367 | ||||||||
Loss on impairment of investment securities | - | - | 72 | ||||||||
Gain on sale of investment securities | - | -9 | - | ||||||||
Other | 69 | 68 | -30 | ||||||||
Net cash provided by operating activities | 776 | 4,568 | 4,159 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchase of investment securities | - | - | - | ||||||||
Proceeds from sales and maturities of investment securities | 17 | 28 | - | ||||||||
Net cash provided by investing activities | 17 | 28 | - | ||||||||
Cash flows from financing activities: | |||||||||||
Issuance of shares under stock option plan | 1,244 | 5 | 57 | ||||||||
Proceeds from other borrowings | - | 2,600 | 2,485 | ||||||||
Repayments on other borrowings | - | -4,240 | -4,685 | ||||||||
Payment of dividends | -2,243 | -2,121 | -2,014 | ||||||||
Net cash used in financing activities | -999 | -3,756 | -4,157 | ||||||||
Net (decrease) increase in cash | -206 | 840 | 2 | ||||||||
Cash at beginning of year | 855 | 15 | 13 | ||||||||
Cash at end of year | $ | 649 | $ | 855 | $ | 15 | |||||
Dividends paid by the Company are provided through dividends from the Bank. At December 31, 2013, the Bank could distribute dividends of up to $6.2 million without regulatory approvals. The primary source of funds for the Company is dividends from the Bank. Under the National Bank Act, a national bank may pay dividends out of its undivided profits in such amounts and at such times as the bank’s board of directors deems prudent. Without prior OCC approval, however, a national bank may not pay dividends in any calendar year that, in the aggregate, exceed the bank’s year-to-date net income plus the bank’s retained net income for the two preceding years. The payment of dividends by any financial institution is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized. | |||||||||||
Commitments_Contingencies_and_
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments Contingencies and Guarantees [Text Block] | ' |
(16) Commitments, Contingencies and Guarantees | |
Commitments to extend credit are legally binding agreements to lend to a borrower providing there are no violations of any conditions established in the contract. The Company, as a provider of financial services, routinely issues financial guarantees in the form of financial and performance commercial and standby letters of credit. As many of the commitments are expected to expire without being drawn upon, the total commitment does not necessarily represent future cash requirements (see Note 5). | |
The Company guarantees payments to holders of certain trust preferred securities issued by wholly owned grantor trusts. The securities are due in 2034 and 2036 and were redeemable beginning in 2009 and 2011. The maximum potential future payments guaranteed by the Company, which includes future interest and principal payments through maturity, was approximately $31.9 million at December 31, 2013. At December 31, 2013, the Company had a recorded liability of $21.7 million of principal and accrued interest to date, representing amounts owed to the trusts. | |
There are no pending legal proceedings to which the Company or the Bank is a party other than ordinary routine litigation incidental to the Bank’s business. While the ultimate outcome of current legal proceedings cannot be predicted with certainty, it is the opinion of management that the resolution of these legal actions should not have a material effect on the Company’s consolidated financial position or results of operations. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Consolidation, Policy [Policy Text Block] | ' | ||||||||||
Principles of Consolidation. The accompanying consolidated financial statements include the accounts of Landmark Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Landmark National Bank (the “Bank”). All intercompany balances and transactions have been eliminated in consolidation. The Bank, considered a single operating segment, is principally engaged in the business of attracting deposits from the general public and using such deposits, together with borrowings and other funds, to originate one-to-four family residential real estate, construction and land, commercial real estate, commercial, agriculture, municipal and consumer loans. | |||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||
Use of Estimates. The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses, valuation and impairment of real estate owned, valuation and impairment of investment securities, income taxes and goodwill. Actual results could differ from those estimates. | |||||||||||
Subsequent Events, Policy [Policy Text Block] | ' | ||||||||||
Subsequent Events. The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that financial statements are filed for potential recognition or disclosure. Any material events that occur between the balance sheet date and filing date are disclosed as subsequent events while the consolidated financial statements are adjusted to reflect any conditions that exist at the balance sheet date. | |||||||||||
Business Combinations Policy [Policy Text Block] | ' | ||||||||||
Business Combinations. At the date of acquisition the Company records the net assets of acquired companies on the consolidated balance sheet at their estimated fair value, and goodwill is recognized for the excess purchase price over the estimated fair value of acquired net assets. The results of operations for acquired companies are included in the Company’s consolidated statement of income beginning at the acquisition date. Expenses arising from the acquisition activities are recorded in the consolidated statement of income during the period incurred. | |||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||||
Cash and cash equivalents. Cash and cash equivalents include cash on hand and amounts due from banks with original maturities of fewer than 90 days. | |||||||||||
Investment, Policy [Policy Text Block] | ' | ||||||||||
Investment Securities. The Company has classified its investment securities portfolio as available-for-sale, with the exception of certain investments held for regulatory purposes. The Company carries its available-for-sale investment securities at fair value and employs valuation techniques which utilize quoted prices or observable inputs when those inputs are available. These observable inputs reflect assumptions that market participants use in pricing the security, developed based on market data obtained from sources independent of the Company. When such information is not available, the Company employs valuation techniques which utilize unobservable inputs, or those which reflect the Company’s own assumptions, based on the best information available in the circumstances. These valuation methods typically involve estimated cash flows and other financial modeling techniques. Changes in underlying factors, assumptions, estimates, or other inputs to the valuation techniques could have a material impact on the Company’s future financial condition and results of operations. Fair value measurements are classified as Level 1 (quoted prices), Level 2 (based on observable inputs) or Level 3 (based on significant unobservable inputs) and are discussed in more detail in Note 13 to the consolidated financial statements. Available-for-sale securities are recorded at fair value with unrealized gains and losses excluded from earnings and reported as a separate component of stockholders’ equity, net of taxes, until realized. Purchase premiums and discounts on investment securities are amortized/accreted into interest income over the estimated lives of the securities using the interest method. Realized gains and losses on sales of available-for-sale securities are recorded on a trade date basis and are calculated using the specific identification method. | |||||||||||
The Company performs quarterly reviews of the investment portfolio to determine if investment securities have any declines in fair value which might be considered other-than-temporary. The initial review begins with all securities in an unrealized loss position. The Company’s assessment of other-than-temporary impairment is based on its judgment of the specific facts and circumstances impacting each individual security at the time such assessments are made. The Company reviews and considers all factual information, including expected cash flows, the structure of the security, the credit quality of the underlying assets and the current and anticipated market conditions. Any credit-related impairment on debt securities is recorded through a charge to earnings. If an equity security is determined to be other-than-temporarily impaired, the entire impairment is recorded through a charge to earnings. | |||||||||||
Other investments included in the Company’s investment portfolio are investments acquired for regulatory purposes and borrowing availability and are accounted for at cost. The cost of such investments represents their redemption value as such investments do not have a readily determinable fair value. | |||||||||||
Acquired Loans Policy [Policy Text Block] | ' | ||||||||||
Acquired Loans. Acquired loans are recorded at estimated fair value at the time of acquisition and accounted for under either Accounting Standards Update (“ASU”) 310-30 or ASC 310, Receivables. Estimated fair values of acquired loans are based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, the expected timing of cash flows, classification status, fixed or variable interest rate, term of loan and whether or not the loan is amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Acquired loans are grouped together according to similar characteristics such as type of loan, loan purpose, geography, risk rating and underlying collateral and treated as distinct pools when applying various valuation techniques and, in certain circumstances, for the ongoing monitoring of the credit quality and performance of the pools. Discounts or premiums created when acquired loans are recorded at their estimated fair values are accreted or amortized over the remaining term of the loan as an adjustment to the related loan’s yield. Similar to originated loans described below, the accrual of interest income on acquired loans is discontinued when the collection of principal or interest, in whole or in part, is doubtful. | |||||||||||
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | ' | ||||||||||
Loans and Allowance for Loan Losses. Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances, net of undisbursed loan proceeds, the allowance for loan losses, and any deferred fees or costs on originated loans. Origination fees received on loans held in portfolio and the estimated direct costs of origination are deferred and amortized to interest income using the interest method. | |||||||||||
Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value, determined on an aggregate basis. Net unrealized losses are recognized through a valuation allowance charged against earnings. Origination fees received and estimated direct costs on such loans are deferred and recognized as a component of the gain or loss on sale. If the Company retains servicing on a sold mortgage loan, servicing fees are recognized as they are collected and included in fees and service charges. | |||||||||||
The Company maintains an allowance for loan losses to absorb probable loan losses inherent in the loan portfolio. The allowance for loan losses is increased by charges to earnings and decreased by charge-offs (net of recoveries). Management’s periodic evaluation of the appropriateness of the allowance is based on the Bank’s loan loss experience over the prior twelve quarters, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, the current level of non-performing assets, and current economic conditions. The Company did not change the historical loan loss period used in the allowance for loan losses during 2013. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance is also subject to regulatory examinations and a determination by the regulatory agencies as to the appropriate level of the allowance. | |||||||||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining if a loan is impaired include payment status, probability of collecting scheduled principal and interest payments when due and value of collateral for collateral dependent loans. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. In addition, the Company classifies troubled debt restructurings (“TDR”) as impaired loans. A loan is classified as a TDR if the Company modifies a loan with any concessions, as defined by accounting guidance, to a borrower experiencing financial difficulty. The allowance recorded on impaired loans is measured on a loan-by-loan basis for commercial, commercial real estate, agriculture and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of homogeneous loans with smaller individual balances are collectively evaluated for impairment. Accordingly, the Company generally does not separately identify individual consumer and residential loans for impairment disclosures. | |||||||||||
The accrual of interest on non-performing loans is discontinued at the time the loan is ninety days delinquent, unless the credit is well-secured and in process of collection. Loans are placed on non-accrual or are charged off at an earlier date if collection of the principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual 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 evaluated individually and are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |||||||||||
The Company routinely sells one-to-four family residential mortgage loans to secondary mortgage market investors. Under standard representations and warranties clauses in the Company’s mortgage sale agreements, the Company may be required to repurchase mortgage loans sold or reimburse the investors for credit losses incurred on those loans if a breach of the contractual representations and warranties occurred. The Company establishes a mortgage repurchase liability in an amount equal to management’s estimate of losses on loans for which the Company could have a repurchase obligation or loss reimbursement. The estimated liability incorporates the volume of loans sold in previous periods, default expectations, historical investor repurchase demand and actual loss severity. Provisions to the mortgage repurchase reserve reduce gains on sales of loans. | |||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||||
Premises and Equipment. Premises and equipment are stated at cost less accumulated depreciation. Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in earnings as incurred. | |||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' | ||||||||||
Goodwill and Intangible Assets. Goodwill is not amortized; however, it is tested for impairment at each calendar year end or more frequently when events or circumstances dictate. The impairment test compares the carrying value of goodwill to an implied fair value of the goodwill, which is based on a review of the Company’s market capitalization adjusted for appropriate control premiums as well as an analysis of valuation multiples of recent, comparable acquisitions. The Company considers the result from each of these valuation methods in determining the implied fair value of its goodwill. A goodwill impairment would be recorded for the amount that the carrying value exceeds the implied fair value. | |||||||||||
Intangible assets include core deposit intangibles, lease intangibles and mortgage servicing rights. Core deposit intangible assets are amortized over their estimated useful life of ten years on an accelerated basis. Lease intangible assets are amortized over the life of the lease. When facts and circumstances indicate potential impairment, the Company will evaluate the recoverability of the intangible asset’s carrying value, using estimates of undiscounted future cash flows over the remaining asset life. Any impairment loss is measured by the excess of carrying value over fair value. Mortgage servicing assets are recognized as separate assets when rights are retained after the sale of financial assets, primarily one-to-four family real estate loans and are recorded at the lower of amortized cost or estimated fair value. Mortgage servicing rights are amortized into non-interest expense in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are recorded at the lower of amortized cost or estimated fair value and are evaluated for impairment based upon the fair value of the retained rights as compared to amortized cost stratified by maturity and interest rate. | |||||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||||
Income Taxes. The objective of accounting for income taxes is to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. Judgment is required in assessing the future tax consequences of events that have been recognized in financial statements or tax returns. Uncertain income tax positions will be recognized only if it is more likely than not that they will be sustained upon examination by taxing authorities, based upon their technical merits. Once that standard is met, the amount recorded will be the largest amount of benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense in the consolidated statements of earnings. The Company assesses deferred tax assets to determine if the items are more likely than not to be realized, and a valuation allowance is established for any amounts that are not more likely than not to be realized. Changes in estimates regarding the actual outcome of these future tax consequences, including the effects of taxing authority examinations, could materially impact the financial position and results of operations. | |||||||||||
Comprehensive Income, Policy [Policy Text Block] | ' | ||||||||||
Comprehensive Income. The Company’s comprehensive income consists of unrealized holding gains and losses on available-for-sale securities. | |||||||||||
Finance, Loan and Lease Receivables, Held for Investments, Foreclosed Assets Policy [Policy Text Block] | ' | ||||||||||
Foreclosed Assets. Assets acquired through, or in lieu of, foreclosure are to be sold and are initially recorded at the date of foreclosure at fair value of the collateral less estimated selling costs through a gain or a charge to the allowance for loan losses, establishing a new cost basis. Subsequent to foreclosure, the Company records a charge to earnings if the carrying value of a property exceeds the fair value less estimated costs to sell. Revenue and expenses from operations and subsequent declines in fair value are included in other non-interest expense in the consolidated statement of earnings. | |||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||||
Stock-Based Compensation. The Company has a stock-based employee compensation plan, which is described more fully in Note 12. The fair value of stock options awarded to employees is calculated through the use of an option pricing model, which requires subjective assumptions, including future stock price volatility and expected term, which greatly affect the estimated fair value. The Company uses the Black-Scholes option pricing model to estimate the grant date fair value of its stock options, which is recognized as compensation expense over the option vesting period, on a straight-line basis, which is typically four or five years. The fair value of restricted common stock is equal to the Company’s stock price on the grant date, which is recognized as compensation expense on a straight-line basis over the vesting period. | |||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||
Earnings per Share. Basic earnings per share represent net earnings divided by the weighted average number of common shares outstanding during the year. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to earnings that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method using the average market price of the Company’s stock for the respective periods. The diluted earnings per share computations for 2013 include all unexercised stock options, while the diluted earnings per share computation for the years ended December 31, 2012 and 2011 excludes unexercised stock options of 69,211 and 525,621, respectively, because their inclusion would have been anti-dilutive to earnings per share. | |||||||||||
The shares used in the calculation of basic and diluted earnings per share, which have been adjusted to give effect to the 5% common stock dividends paid by the Company in December 2013, 2012 and 2011, are shown below: | |||||||||||
(Dollars in thousands, except per share amounts) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Net earnings available to common shareholders | $ | 4,655 | $ | 6,367 | $ | 4,484 | |||||
Weighted average common shares outstanding - basic | 3,084,566 | 3,068,133 | 3,062,209 | ||||||||
Assumed exercise of stock options | 46,900 | 26,345 | - | ||||||||
Weighted average common shares outstanding - diluted | 3,131,466 | 3,094,477 | 3,062,209 | ||||||||
Earnings per share: | |||||||||||
Basic | $ | 1.51 | $ | 2.08 | $ | 1.46 | |||||
Diluted | $ | 1.49 | $ | 2.06 | $ | 1.46 | |||||
Derivatives, Reporting of Derivative Activity [Policy Text Block] | ' | ||||||||||
Derivative Financial Instruments. The Company is exposed to market risk, primarily relating to changes in interest rates. To manage the volatility relating to these exposures, the Company’s risk management policies permit its use of derivative financial instruments. The Company uses derivatives on a limited basis mainly to stabilize interest rate margins. The Company more often manages normal asset and liability positions by altering the terms of the products it offers. | |||||||||||
GAAP requires that all derivative financial instruments be recorded on the balance sheet at fair value. Derivatives that qualify in a hedging relationship can be designated, based on the exposure being hedged, as fair value or cash flow hedges. Under the cash flow hedging model, the effective portion of the change in the gain or loss related to the derivative is recognized as a component of other comprehensive income, net of taxes. The ineffective portion is recognized in current earnings. The Company had no derivative financial instruments designated as hedging instruments as of December 31, 2013 and 2012. | |||||||||||
The Company enters into interest rate lock commitments on certain mortgage loans, which are commitments to originate fixed rate one-to-four family residential real estate loans. The Company also has corresponding forward sales contracts related to these interest rate lock commitments. Both the mortgage loan commitments and the related forward sales contracts are accounted for as derivatives and carried at fair value with changes in fair value recorded in gains on sales of loans. Fair values are based upon quoted prices, and fair value measurements of interest rate commitments include the value of loan servicing rights. | |||||||||||
The Company may enter into interest rate swap transactions with loan customers. The interest rate risk on these swap transactions is managed by entering into offsetting interest rate swap agreements with various unaffiliated counterparties (“broker-dealers”). Both customer and broker-dealer related interest rate swaps are accounted for as derivatives and carried at fair value. | |||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||
Recent Accounting Developments. In December 2011, the Financial Accounting Standards Board (the “FASB”) issued ASU 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Under ASU 2011-11, an entity is required to disclose both gross and net information about instruments and transactions eligible for offset in the balance sheet, as well as instruments and transactions subject to an agreement similar to a master netting agreement. ASU 2013-01: Balance Sheet (Topic 210) Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities was issued in January 2013, and amended ASU 2011-11 to specifically include only derivatives accounted for under Topic 815, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions that are either offset or subject to an enforceable master netting arrangement. Both ASUs were effective for annual and interim periods beginning January 1, 2013. Adoption of ASU 2011-11 and ASU 2013-01 did not have a significant impact on the Company’s consolidated financial statements. | |||||||||||
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments require an entity to present, either in the income statement or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. This ASU became effective for annual and interim periods beginning January 1, 2013. Adoption of ASU 2013-02 did not have a significant impact on the Company’s consolidated financial statements. | |||||||||||
In July 2013, the FASB issued ASU 2013-10, Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. These amendments allow the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes, in addition to the current benchmark rates of direct Treasury obligations of the U.S. government and London Interbank Offered Rate on swaps. The amendments were effective on a prospective basis for new or redesignated hedging relationships on July 17, 2013. Adoption of ASU 2013-10 did not have a significant impact on the Company’s consolidated financial statements. | |||||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or Tax Credit Carryforward Exists. To eliminate diversity in practice, ASU 2013-11 provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This ASU is effective for annual and interim periods beginning after December 15, 2013. Adoption of ASU 2013-11 did not have a significant impact on the Company’s consolidated financial statements. | |||||||||||
In January 2014, the FASB issued ASU 2014-04, Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. These amendments require companies to disclose the amount of foreclosed residential real estate property held and the recorded investment in consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction. The ASU also defines when a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The amendments are effective for interim and annual periods beginning January 1, 2015. The adoption of ASU 2014-04 is not expected to have a significant effect on the Company's consolidated financial statements. | |||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | ' | ||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||
The shares used in the calculation of basic and diluted earnings per share, which have been adjusted to give effect to the 5% common stock dividends paid by the Company in December 2013, 2012 and 2011, are shown below: | |||||||||||
(Dollars in thousands, except per share amounts) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Net earnings available to common shareholders | $ | 4,655 | $ | 6,367 | $ | 4,484 | |||||
Weighted average common shares outstanding - basic | 3,084,566 | 3,068,133 | 3,062,209 | ||||||||
Assumed exercise of stock options | 46,900 | 26,345 | - | ||||||||
Weighted average common shares outstanding - diluted | 3,131,466 | 3,094,477 | 3,062,209 | ||||||||
Earnings per share: | |||||||||||
Basic | $ | 1.51 | $ | 2.08 | $ | 1.46 | |||||
Diluted | $ | 1.49 | $ | 2.06 | $ | 1.46 | |||||
Acquisition_Tables
Acquisition (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Business Combinations [Abstract] | ' | ||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | ' | ||||||||||
The fair values of assets acquired and liabilities assumed, including fair value adjustments and purchase accounting entries are as follows: | |||||||||||
(Dollars in thousands) | As of November 1, 2013 | ||||||||||
Citizens | Fair value | Acquired | |||||||||
Bank | adjustments | balances | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 31,316 | $ | -6,288 | $ | 25,028 | |||||
Investment securities: | |||||||||||
Available-for-sale, at fair value | 56,720 | -941 | 55,779 | ||||||||
Other securities | 565 | - | 565 | ||||||||
Loans, net | 97,051 | -1,933 | 95,118 | ||||||||
Loans held for sale, net | 3,470 | - | 3,470 | ||||||||
Premises and equipment, net | 4,358 | 1,611 | 5,969 | ||||||||
Goodwill | - | 4,456 | 4,456 | ||||||||
Other intangible assets, net | 161 | 2,060 | 2,221 | ||||||||
Accrued interest and other assets | 1,720 | 35 | 1,755 | ||||||||
Total assets | $ | 195,361 | $ | -1,000 | $ | 194,361 | |||||
Liabilities and Stockholders’ Equity | |||||||||||
Liabilities: | |||||||||||
Total deposits | $ | 181,875 | $ | - | $ | 181,875 | |||||
Other borrowings | 7,489 | - | 7,489 | ||||||||
Subordinated debentures | 5,155 | -1,000 | 4,155 | ||||||||
Accrued interest, taxes, and other liabilities | 842 | - | 842 | ||||||||
Total liabilities | $ | 195,361 | $ | -1,000 | $ | 194,361 | |||||
Business Acquisition, Pro Forma Information [Table Text Block] | ' | ||||||||||
Unaudited pro forma consolidated operating results for the years ended December 31, 2013 and December 31, 2012, as if the acquisition was consummated on January 1 of that year are as follows: | |||||||||||
(Dollars in thousands, except per share amounts) | Years ended December 31, | ||||||||||
2013 | 2012 | ||||||||||
Total interest income | $ | 29,055 | $ | 31,661 | |||||||
Net earnings | 6,537 | 8,038 | |||||||||
Earnings per share: | |||||||||||
Basic | 2.12 | 2.62 | |||||||||
Diluted | 2.09 | 2.6 | |||||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | ' | |||||||||||||
A summary of the other intangible assets that continue to be subject to amortization is as follows: | ||||||||||||||
(Dollars in thousands) | As of December 31, 2013 | |||||||||||||
Gross carrying | Accumulated | Valuation | Net carrying | |||||||||||
amount | amortization | allowance | amount | |||||||||||
Core deposit intangible assets | $ | 6,684 | $ | -4,592 | $ | - | $ | 2,092 | ||||||
Lease intangible asset | 350 | -8 | - | 342 | ||||||||||
Mortgage servicing rights | 3,866 | -1,489 | - | 2,377 | ||||||||||
Total other intangible assets | $ | 10,900 | $ | -6,089 | $ | - | $ | 4,811 | ||||||
As of December 31, 2012 | ||||||||||||||
Gross carrying | Accumulated | Valuation | Net carrying | |||||||||||
amount | amortization | allowance | amount | |||||||||||
Core deposit intangible assets | $ | 4,973 | $ | -4,258 | $ | - | $ | 715 | ||||||
Mortgage servicing rights | 3,038 | -1,147 | -212 | 1,679 | ||||||||||
Total other intangible assets | $ | 8,011 | $ | -5,405 | $ | -212 | $ | 2,394 | ||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | |||||||||||||
Estimated amortization expense for the years ending December 31 is as follows: | ||||||||||||||
(Dollars in thousands) | Amortization | |||||||||||||
expense | ||||||||||||||
2014 | $ | 1,169 | ||||||||||||
2015 | 1,055 | |||||||||||||
2016 | 954 | |||||||||||||
2017 | 793 | |||||||||||||
2018 | 253 | |||||||||||||
Thereafter | 587 | |||||||||||||
Total | $ | 4,811 | ||||||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] | ' | ||||||||||||||||||||||
A summary of investment securities available-for-sale is as follows: | |||||||||||||||||||||||
(Dollars in thousands) | As of December 31, 2013 | ||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||
Amortized | unrealized | unrealized | Estimated | ||||||||||||||||||||
cost | gains | losses | fair value | ||||||||||||||||||||
U. S. treasury securities | $ | 500 | $ | - | $ | - | $ | 500 | |||||||||||||||
U. S. federal agency obligations | 20,167 | 10 | -534 | 19,643 | |||||||||||||||||||
Municipal obligations, tax exempt | 90,700 | 1,712 | -619 | 91,793 | |||||||||||||||||||
Municipal obligations, taxable | 53,244 | 270 | -1,042 | 52,472 | |||||||||||||||||||
Mortgage-backed securities | 127,384 | 700 | -2,491 | 125,593 | |||||||||||||||||||
Common stocks | 602 | 501 | - | 1,103 | |||||||||||||||||||
Certificates of deposit | 9,142 | - | - | 9,142 | |||||||||||||||||||
Total | $ | 301,739 | $ | 3,193 | $ | -4,686 | $ | 300,246 | |||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||
Amortized | unrealized | unrealized | Estimated | ||||||||||||||||||||
cost | gains | losses | fair value | ||||||||||||||||||||
U. S. federal agency obligations | $ | 8,804 | $ | 50 | $ | -6 | $ | 8,848 | |||||||||||||||
Municipal obligations, tax exempt | 73,699 | 3,618 | -31 | 77,286 | |||||||||||||||||||
Municipal obligations, taxable | 37,334 | 818 | -10 | 38,142 | |||||||||||||||||||
Mortgage-backed securities | 81,113 | 889 | -154 | 81,848 | |||||||||||||||||||
Common stocks | 602 | 301 | -1 | 902 | |||||||||||||||||||
Certificates of deposit | 6,274 | - | - | 6,274 | |||||||||||||||||||
Total | $ | 207,826 | $ | 5,676 | $ | -202 | $ | 213,300 | |||||||||||||||
Available For Sale Securities Continuous Unrealized Loss Position Fair Value [Table Text Block] | ' | ||||||||||||||||||||||
Securities which were temporarily impaired are shown below, along with the length of the impairment period. | |||||||||||||||||||||||
(Dollars in thousands) | As of December 31, 2013 | ||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
No. of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||
securities | value | losses | value | losses | value | losses | |||||||||||||||||
U.S. federal agency obligations | 18 | $ | 16,028 | $ | -436 | $ | 2,149 | $ | -98 | 18,177 | -534 | ||||||||||||
Municipal obligations, tax exempt | 91 | 24,496 | -518 | 3,151 | -101 | 27,647 | -619 | ||||||||||||||||
Municipal obligations, taxable | 88 | 35,299 | -1,030 | 1,080 | -12 | 36,379 | -1,042 | ||||||||||||||||
Mortgage-backed securities | 70 | 89,140 | -2,491 | - | - | 89,140 | -2,491 | ||||||||||||||||
Total | 267 | $ | 164,963 | $ | -4,475 | $ | 6,380 | $ | -211 | $ | 171,343 | $ | -4,686 | ||||||||||
As of December 31, 2012 | |||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||
No. of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||
securities | value | losses | value | losses | value | losses | |||||||||||||||||
U.S. federal agency obligations | 2 | $ | 2,241 | $ | -6 | $ | - | $ | - | 2,241 | -6 | ||||||||||||
Municipal obligations, tax exempt | 16 | 4,669 | -31 | - | - | 4,669 | -31 | ||||||||||||||||
Municipal obligations, taxable | 8 | 2,948 | -8 | 209 | -2 | 3,157 | -10 | ||||||||||||||||
Mortgage-backed securities | 24 | 27,974 | -154 | - | - | 27,974 | -154 | ||||||||||||||||
Common stocks | 1 | 21 | -1 | - | - | 21 | -1 | ||||||||||||||||
Total | 51 | $ | 37,853 | $ | -200 | $ | 209 | $ | -2 | $ | 38,062 | $ | -202 | ||||||||||
Available For Sale Securities Debt Maturities [Table Text Block] | ' | ||||||||||||||||||||||
Maturities of investment securities at December 31, 2013 are as follows: | |||||||||||||||||||||||
(Dollars in thousands) | Amortized | Estimated | |||||||||||||||||||||
cost | fair value | ||||||||||||||||||||||
Due in less than one year | $ | 11,956 | $ | 12,057 | |||||||||||||||||||
Due after one year but within five years | 167,118 | 166,881 | |||||||||||||||||||||
Due after five years but within ten years | 90,324 | 89,370 | |||||||||||||||||||||
Due after ten years | 31,739 | 30,835 | |||||||||||||||||||||
Common stocks | 602 | 1,103 | |||||||||||||||||||||
Total | $ | 301,739 | $ | 300,246 | |||||||||||||||||||
Schedule of Realized Gain (Loss) [Table Text Block] | ' | ||||||||||||||||||||||
Gross realized gains and losses on sales of available-for-sale securities are as follows: | |||||||||||||||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Realized gains | $ | - | $ | 795 | $ | 186 | |||||||||||||||||
Realized losses | - | -309 | - | ||||||||||||||||||||
Total | $ | - | $ | 486 | $ | 186 | |||||||||||||||||
Loans_and_Allowance_for_Loan_L1
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||||||||||||||||||||
Loans consist of the following: | ||||||||||||||||||||||||||
As of December 31, | ||||||||||||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | ||||||||||||||||||||||||
One-to-four family residential real estate | $ | 125,087 | $ | 88,454 | ||||||||||||||||||||||
Construction and land | 23,776 | 23,435 | ||||||||||||||||||||||||
Commercial real estate | 119,390 | 88,790 | ||||||||||||||||||||||||
Commercial loans | 61,383 | 64,570 | ||||||||||||||||||||||||
Agriculture loans | 62,287 | 31,935 | ||||||||||||||||||||||||
Municipal loans | 8,846 | 9,857 | ||||||||||||||||||||||||
Consumer loans | 18,600 | 13,417 | ||||||||||||||||||||||||
Total gross loans | 419,369 | 320,458 | ||||||||||||||||||||||||
Net deferred loan costs and loans in process | 187 | 37 | ||||||||||||||||||||||||
Allowance for loan losses | -5,540 | -4,581 | ||||||||||||||||||||||||
Loans, net | $ | 414,016 | $ | 315,914 | ||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | |||||||||||||||||||||||||
The following tables provide information on the Company’s allowance for loan losses by loan class and allowance methodology: | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||
One-to-four | Construction | Commercial | Commercial | Agriculture | Municipal | Consumer | Total | |||||||||||||||||||
family | and land | real estate | loans | loans | loans | loans | ||||||||||||||||||||
residential | ||||||||||||||||||||||||||
real estate | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 714 | $ | 1,214 | $ | 1,313 | $ | 707 | $ | 367 | $ | 107 | $ | 159 | $ | 4,581 | ||||||||||
Charge-offs | -93 | -53 | -11 | -200 | - | -65 | -194 | -616 | ||||||||||||||||||
Recoveries | 202 | 523 | - | 20 | - | - | 30 | 775 | ||||||||||||||||||
Provision for loan losses | -91 | -341 | 668 | 242 | 178 | 5 | 139 | 800 | ||||||||||||||||||
Balance at December 31, 2013 | 732 | 1,343 | 1,970 | 769 | 545 | 47 | 134 | 5,540 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Individually evaluated for loss | 82 | 234 | 140 | 488 | - | - | 7 | 951 | ||||||||||||||||||
Collectively evaluated for loss | 650 | 1,109 | 1,830 | 281 | 545 | 47 | 127 | 4,589 | ||||||||||||||||||
Total | 732 | 1,343 | 1,970 | 769 | 545 | 47 | 134 | 5,540 | ||||||||||||||||||
Loan balances: | ||||||||||||||||||||||||||
Individually evaluated for loss | 782 | 8,160 | 2,936 | 4,148 | - | 706 | 24 | 16,756 | ||||||||||||||||||
Collectively evaluated for loss | 124,305 | 15,616 | 116,454 | 57,235 | 62,287 | 8,140 | 18,576 | 402,613 | ||||||||||||||||||
Total | $ | 125,087 | $ | 23,776 | $ | 119,390 | $ | 61,383 | $ | 62,287 | $ | 8,846 | $ | 18,600 | $ | 419,369 | ||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||
One-to-four | Construction | Commercial | Commercial | Agriculture | Municipal | Consumer | Total | |||||||||||||||||||
family | and land | real estate | loans | loans | loans | loans | ||||||||||||||||||||
residential | ||||||||||||||||||||||||||
real estate | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 560 | $ | 928 | $ | 1,791 | $ | 745 | $ | 433 | $ | 130 | $ | 120 | $ | 4,707 | ||||||||||
Charge-offs | -70 | -1,749 | - | -70 | - | - | -238 | -2,127 | ||||||||||||||||||
Recoveries | 20 | 4 | - | 12 | 39 | - | 26 | 101 | ||||||||||||||||||
Provision for loan losses | 204 | 2,031 | -478 | 20 | -105 | -23 | 251 | 1,900 | ||||||||||||||||||
Balance at December 31, 2012 | 714 | 1,214 | 1,313 | 707 | 367 | 107 | 159 | 4,581 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Individually evaluated for loss | 165 | 388 | - | 268 | - | 65 | 15 | 901 | ||||||||||||||||||
Collectively evaluated for loss | 549 | 826 | 1,313 | 439 | 367 | 42 | 144 | 3,680 | ||||||||||||||||||
Total | 714 | 1,214 | 1,313 | 707 | 367 | 107 | 159 | 4,581 | ||||||||||||||||||
Loan balances: | ||||||||||||||||||||||||||
Individually evaluated for loss | 739 | 8,752 | 2,833 | 1,475 | 5 | 772 | 18 | 14,594 | ||||||||||||||||||
Collectively evaluated for loss | 87,715 | 14,683 | 85,957 | 63,095 | 31,930 | 9,085 | 13,399 | 305,864 | ||||||||||||||||||
Total | $ | 88,454 | $ | 23,435 | $ | 88,790 | $ | 64,570 | $ | 31,935 | $ | 9,857 | $ | 13,417 | $ | 320,458 | ||||||||||
Year ended December 31, 2011 | ||||||||||||||||||||||||||
One-to-four | Construction | Commercial | Commercial | Agriculture | Municipal | Consumer | Total | |||||||||||||||||||
family | and land | real estate | loans | loans | loans | loans | ||||||||||||||||||||
residential | ||||||||||||||||||||||||||
real estate | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Balance at December 31, 2010 | $ | 395 | $ | 1,193 | $ | 1,571 | $ | 1,173 | $ | 397 | $ | 99 | $ | 139 | $ | 4,967 | ||||||||||
Charge-offs | -110 | -1,173 | -434 | -590 | -1 | - | -132 | -2,440 | ||||||||||||||||||
Recoveries | 41 | 4 | 37 | 14 | 35 | - | 49 | 180 | ||||||||||||||||||
Provsion for loan losses | 234 | 904 | 617 | 148 | 2 | 31 | 64 | 2,000 | ||||||||||||||||||
Balance at December 31, 2011 | 560 | 928 | 1,791 | 745 | 433 | 130 | 120 | 4,707 | ||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Individually evaluated for loss | 65 | 8 | - | 35 | - | 65 | 32 | 205 | ||||||||||||||||||
Collectively evaluated for loss | 495 | 920 | 1,791 | 710 | 433 | 65 | 88 | 4,502 | ||||||||||||||||||
Total | 560 | 928 | 1,791 | 745 | 433 | 130 | 120 | 4,707 | ||||||||||||||||||
Loan balances: | ||||||||||||||||||||||||||
Individually evaluated for loss | 1,280 | 225 | 17 | 78 | 63 | 784 | 43 | 2,490 | ||||||||||||||||||
Collectively evaluated for loss | 77,828 | 21,447 | 93,769 | 56,928 | 38,989 | 9,582 | 13,541 | 312,084 | ||||||||||||||||||
Total | $ | 79,108 | $ | 21,672 | $ | 93,786 | $ | 57,006 | $ | 39,052 | $ | 10,366 | $ | 13,584 | $ | 314,574 | ||||||||||
Past Due Financing Receivables [Table Text Block] | ' | |||||||||||||||||||||||||
The following tables present information on the Company’s past due and non-accrual loans by loan class: | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||
30-59 days | 60-89 days | 90 days or | Total past | Non-accrual | Total | |||||||||||||||||||||
delinquent | delinquent | more | due loans | loans | ||||||||||||||||||||||
and | and | delinquent | accruing | |||||||||||||||||||||||
accruing | accruing | and accruing | ||||||||||||||||||||||||
One-to-four family residential real estate | $ | 311 | $ | 793 | $ | - | $ | 1,104 | $ | 776 | $ | 1,880 | ||||||||||||||
Construction and land | 18 | - | - | 18 | 2,165 | 2,183 | ||||||||||||||||||||
Commercial real estate | - | 9 | - | 9 | 2,658 | 2,667 | ||||||||||||||||||||
Commercial loans | 187 | - | - | 187 | 4,148 | 4,335 | ||||||||||||||||||||
Agriculture loans | 23 | - | - | 23 | - | 23 | ||||||||||||||||||||
Municipal loans | - | - | - | - | 65 | 65 | ||||||||||||||||||||
Consumer loans | 85 | 11 | - | 96 | 24 | 120 | ||||||||||||||||||||
Total | $ | 624 | $ | 813 | $ | - | $ | 1,437 | $ | 9,836 | $ | 11,273 | ||||||||||||||
Percent of gross loans | 0.15 | % | 0.19 | % | 0 | % | 0.34 | % | 2.35 | % | 2.69 | % | ||||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||
30-59 days | 60-89 days | 90 days or | Total past | Non-accrual | Total | |||||||||||||||||||||
delinquent | delinquent | more | due loans | loans | ||||||||||||||||||||||
and | and | delinquent | accruing | |||||||||||||||||||||||
accruing | accruing | and accruing | ||||||||||||||||||||||||
One-to-four family residential real estate | $ | 282 | $ | 1,362 | $ | - | $ | 1,644 | $ | 731 | $ | 2,375 | ||||||||||||||
Construction and land | 18 | - | - | 18 | 3,915 | 3,933 | ||||||||||||||||||||
Commercial real estate | 166 | 82 | - | 248 | 2,833 | 3,081 | ||||||||||||||||||||
Commercial loans | 62 | 17 | - | 79 | 1,475 | 1,554 | ||||||||||||||||||||
Agriculture loans | - | - | - | - | 5 | 5 | ||||||||||||||||||||
Municipal loans | - | - | - | - | 131 | 131 | ||||||||||||||||||||
Consumer loans | 142 | 65 | - | 207 | 18 | 225 | ||||||||||||||||||||
Total | $ | 670 | $ | 1,526 | $ | - | $ | 2,196 | $ | 9,108 | $ | 11,304 | ||||||||||||||
Percent of gross loans | 0.21 | % | 0.48 | % | 0 | % | 0.69 | % | 2.84 | % | 3.53 | % | ||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | |||||||||||||||||||||||||
The following tables present information on impaired loans: | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||||||
Unpaid | Impaired | Impaired | Impaired | Related | Year-to- | Year-to- | ||||||||||||||||||||
contractual | loan | loans | loans with | allowance | date average | date interest | ||||||||||||||||||||
principal | balance | without an | an | recorded | loan balance | income | ||||||||||||||||||||
allowance | allowance | recognized | ||||||||||||||||||||||||
One-to-four family residential real estate | $ | 782 | $ | 782 | $ | 326 | $ | 456 | $ | 82 | $ | 800 | $ | - | ||||||||||||
Construction and land | 9,895 | 8,160 | 6,098 | 2,062 | 234 | 8,383 | 279 | |||||||||||||||||||
Commercial real estate | 2,936 | 2,936 | 278 | 2,658 | 140 | 3,046 | 18 | |||||||||||||||||||
Commercial loans | 187 | 4,148 | 4,115 | 33 | 488 | 192 | - | |||||||||||||||||||
Municipal loans | 772 | 706 | 706 | - | - | 772 | - | |||||||||||||||||||
Consumer loans | 24 | 24 | 6 | 18 | 7 | 26 | 20 | |||||||||||||||||||
Total impaired loans | $ | 14,596 | $ | 16,756 | $ | 11,529 | $ | 5,227 | $ | 951 | $ | 13,219 | $ | 317 | ||||||||||||
As of December 31, 2012 | ||||||||||||||||||||||||||
Unpaid | Impaired | Impaired | Impaired | Related | Year-to- | Year-to- | ||||||||||||||||||||
contractual | loan | loans | loans with | allowance | date average | date interest | ||||||||||||||||||||
principal | balance | without an | an | recorded | loan balance | income | ||||||||||||||||||||
allowance | allowance | recognized | ||||||||||||||||||||||||
One-to-four family residential real estate | $ | 1,029 | $ | 739 | $ | 57 | $ | 682 | $ | 165 | $ | 767 | $ | 19 | ||||||||||||
Construction and land | 10,486 | 8,752 | 6,395 | 2,357 | 388 | 9,211 | 302 | |||||||||||||||||||
Commercial real estate | 2,833 | 2,833 | 2,833 | - | - | 3,352 | - | |||||||||||||||||||
Commercial loans | 1,475 | 1,475 | 395 | 1,080 | 268 | 1,621 | 3 | |||||||||||||||||||
Agriculture loans | 5 | 5 | 5 | - | - | 8 | - | |||||||||||||||||||
Municipal loans | 772 | 772 | 641 | 131 | 65 | 779 | 20 | |||||||||||||||||||
Consumer loans | 18 | 18 | 3 | 15 | 15 | 20 | - | |||||||||||||||||||
Total impaired loans | $ | 16,618 | $ | 14,594 | $ | 10,329 | $ | 4,265 | $ | 901 | $ | 15,758 | $ | 344 | ||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | ' | |||||||||||||||||||||||||
The following table presents information on loans that are classified as TDRs: | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||||||||||||
Number of | Non-accrual | Accruing | Number of | Non-accrual | Accruing | |||||||||||||||||||||
loans | balance | balance | loans | balance | balance | |||||||||||||||||||||
One-to-four family residential real estate | 1 | $ | - | $ | 6 | 2 | $ | 485 | $ | 8 | ||||||||||||||||
Construction and land | 7 | 627 | 5,995 | 7 | 2,240 | 4,837 | ||||||||||||||||||||
Commercial real estate | 1 | - | 278 | - | - | - | ||||||||||||||||||||
Commerical loans | - | - | - | 2 | 196 | - | ||||||||||||||||||||
Municipal loans | 2 | - | 641 | 2 | - | 641 | ||||||||||||||||||||
Total troubled debt restructurings | 11 | $ | 627 | $ | 6,920 | 13 | $ | 2,921 | $ | 5,486 | ||||||||||||||||
Schedule Of Loan To Directors Officers And Affiliated Parties [Table Text Block] | ' | |||||||||||||||||||||||||
The Company had loans to directors and officers, and to affiliated parties, at December 31, 2013 and 2012, which carry terms similar to those for other loans to persons unrelated to the Company or the Bank. Management believes such outstanding loans do not represent more than a normal risk of collection. A summary of such loans is as follows: | ||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 9,520 | ||||||||||||||||||||||||
New loans | 7,983 | |||||||||||||||||||||||||
Repayments | -4,094 | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 13,409 | ||||||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||||
Premises and equipment consisted of the following: | ||||||||||
(Dollars in thousands) | Estimated | As of December 31, | ||||||||
useful lives | 2013 | 2012 | ||||||||
Land | Indefinite | $ | 6,056 | $ | 3,840 | |||||
Office buildings and improvements | 10 - 50 years | 17,734 | 14,045 | |||||||
Furniture and equipment | 3 - 15 years | 8,124 | 7,530 | |||||||
Automobiles | 2 - 5 years | 492 | 363 | |||||||
Total premises and equipment | 32,406 | 25,778 | ||||||||
Accumulated depreciation | -11,772 | -10,811 | ||||||||
Total premises and equipment, net | $ | 20,634 | $ | 14,967 | ||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Banking and Thrift [Abstract] | ' | ||||||||||
Schedule Of Maturities Of Time Deposit [Table Text Block] | ' | ||||||||||
The following table presents the maturities of certificates of deposit at December 31, 2013: | |||||||||||
(Dollars in thousands) | |||||||||||
Year | Amount | ||||||||||
2014 | $ | 122,891 | |||||||||
2015 | 35,224 | ||||||||||
2016 | 12,419 | ||||||||||
2017 | 10,295 | ||||||||||
2018 | 5,320 | ||||||||||
Thereafter | 46 | ||||||||||
Total | $ | 186,195 | |||||||||
Schedule Of Interest Expense [Table Text Block] | ' | ||||||||||
The components of interest expense associated with deposits are as follows: | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Time deposits | $ | 1,172 | $ | 1,807 | $ | 2,341 | |||||
Money market and NOW | 188 | 313 | 371 | ||||||||
Savings | 17 | 29 | 48 | ||||||||
Total | $ | 1,377 | $ | 2,149 | $ | 2,760 | |||||
Federal_Home_Loan_Bank_Borrowi1
Federal Home Loan Bank Borrowings (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Banking and Thrift [Abstract] | ' | |||||||||||
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block] | ' | |||||||||||
Maturities of such borrowings at December 31, 2013 and 2012 are summarized as follows: | ||||||||||||
(Dollars in thousands) | As of December 31, | |||||||||||
2013 | 2012 | |||||||||||
Year | Amount | Weighted | Amount | Weighted average rates | ||||||||
average rates | ||||||||||||
2017 | $ | 10,000 | 3.64 | % | $ | 10,000 | 3.64 | % | ||||
2018 | 25,689 | 3.39 | % | 25,726 | 3.39 | % | ||||||
Total | $ | 35,689 | $ | 35,726 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||
Income tax expense attributable to income from operations consisted of: | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | 1,178 | $ | 1,413 | $ | 1,363 | |||||
State | -14 | 174 | -66 | ||||||||
Total current | 1,164 | 1,587 | 1,297 | ||||||||
Deferred: | |||||||||||
Federal | -375 | 209 | -700 | ||||||||
State | -43 | 18 | -93 | ||||||||
Total deferred | -418 | 227 | -793 | ||||||||
Income tax expense | $ | 746 | $ | 1,814 | $ | 504 | |||||
Schedule Of Income Tax Expense Benefit Allocating Amount To Stockholders Equity [Table Text Block] | ' | ||||||||||
Total income tax expense (benefit), including amounts allocated directly to stockholders’ equity, was as follows: | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Income tax from operations | $ | 746 | $ | 1,814 | $ | 504 | |||||
Stockholders’ equity, recognition of tax benefit for stock options exercised | -29 | -1 | -12 | ||||||||
Stockholders’ equity, recognition of unrealized (losses)/gains on available-for-sale securities | -2,583 | -77 | 1,558 | ||||||||
$ | -1,866 | $ | 1,736 | $ | 2,050 | ||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||
The reasons for the difference between actual income tax expense (benefit) and expected income tax expense attributable to income from operations at the 34% statutory federal income tax rate were as follows: | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Computed “expected” tax expense | $ | 1,836 | $ | 2,782 | $ | 1,696 | |||||
(Reduction) increase in income taxes resulting from: | |||||||||||
Tax-exempt interest income, net | -861 | -906 | -890 | ||||||||
Bank owned life insurance | -201 | -195 | -199 | ||||||||
Reversal of unrecognized tax benefits, net | -207 | -132 | -182 | ||||||||
State income taxes, net of federal benefit | 169 | 259 | 77 | ||||||||
Investment tax credits | -26 | -35 | -43 | ||||||||
Other, net | 36 | 41 | 45 | ||||||||
$ | 746 | $ | 1,814 | $ | 504 | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||
The tax effects of temporary differences that give rise to the significant portions of the deferred tax assets and liabilities at the following dates were as follows: | |||||||||||
(Dollars in thousands) | As of December 31, | ||||||||||
2013 | 2012 | ||||||||||
Deferred tax assets: | |||||||||||
Federal alternative minimum tax credit and low income housing credit carry forwards | $ | 1,955 | $ | 1,929 | |||||||
Loans, including allowance for loan losses | 2,292 | 1,793 | |||||||||
Unrealized loss on investment securities available-for-sale | 567 | - | |||||||||
Net operating loss carry forwards | 533 | 500 | |||||||||
State taxes | 450 | 421 | |||||||||
Intangible assets | 324 | - | |||||||||
Deferred compensation arrangements | 208 | 224 | |||||||||
Valuation allowance on other real estate | 42 | 213 | |||||||||
Investment impairments | 48 | 48 | |||||||||
Other, net | 61 | 84 | |||||||||
Total deferred tax assets | 6,480 | 5,212 | |||||||||
Deferred tax liabilities: | |||||||||||
Unrealized gain on investment securities available-for-sale | - | 2,016 | |||||||||
Premises and equipment, net of depreciation | 755 | 774 | |||||||||
FHLB stock dividends | 504 | 482 | |||||||||
Other borrowings | 329 | - | |||||||||
Intangible assets | - | 86 | |||||||||
Investments | 4 | - | |||||||||
Total deferred tax liabilities | 1,592 | 3,358 | |||||||||
Less valuation allowance | -533 | -500 | |||||||||
Net deferred tax asset | $ | 4,355 | $ | 1,354 | |||||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | ' | ||||||||||
The Company has unrecognized tax benefits representing tax positions for which a liability has been established. A reconciliation of the beginning and ending amount of the liability relating to unrecognized tax benefits is as follows: | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | ||||||||||
Unrecognized tax benefits at beginning of year | $ | 986 | $ | 856 | |||||||
Gross increases to current year tax positions | 272 | 334 | |||||||||
Gross decreases to prior year’s tax positions | - | -5 | |||||||||
Lapse of statute of limitations | -314 | -199 | |||||||||
Unrecognized tax benefits at end of year | $ | 944 | $ | 986 | |||||||
Stock_Compensation_Plan_Tables
Stock Compensation Plan (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||
The fair value of options granted were estimated utilizing the following weighted average assumptions: | |||||||||||||
Years ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Dividend rate | n/a | n/a | 6.33 | % | |||||||||
Volatility | n/a | n/a | 23.58 | % | |||||||||
Risk-free interest rate | n/a | n/a | 2.15 | % | |||||||||
Expected term | n/a | n/a | 5 years | ||||||||||
Fair value per option at grant date | n/a | n/a | $ | 1.59 | |||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
A summary of option activity during 2013 is presented below: | |||||||||||||
(Dollars in thousands, except per share amounts) | Weighted | Weighted | |||||||||||
average | average | ||||||||||||
exercise | remaining | Aggregate | |||||||||||
price | contractual | intrinsic | |||||||||||
Shares | per share | term | value | ||||||||||
Outstanding at December 31, 2012 | 487,331 | $ | 18.18 | 4.0 years | $ | 355 | |||||||
Effect of 5% stock dividend | 20,328 | $ | - | - | n/a | ||||||||
Forfeited/expired | -11,849 | $ | 19.18 | - | n/a | ||||||||
Exercised | -69,062 | $ | 16.21 | - | n/a | ||||||||
Outstanding at December 31, 2013 | 426,748 | $ | 17.23 | 3.4 years | $ | 1,011 | |||||||
Exercisable at December 31, 2013 | 396,289 | $ | 17.48 | 3.1 years | $ | 842 | |||||||
Vested and expected to vest at December 31, 2013 | 406,114 | $ | 17.23 | 3.4 years | $ | 961 | |||||||
Schedule of Nonvested Share Activity [Table Text Block] | ' | ||||||||||||
A summary of nonvested option activity during 2013 is presented below: | |||||||||||||
Weighted | |||||||||||||
average | |||||||||||||
exercise | |||||||||||||
price | |||||||||||||
Shares | per share | ||||||||||||
Nonvested options at December 31, 2012 | 49,374 | $ | 14.94 | ||||||||||
Forfeited/expired | -1,517 | $ | 14.74 | ||||||||||
Vested | -18,205 | $ | 15.27 | ||||||||||
Effect of 5% stock dividend | 807 | ||||||||||||
Nonvested options at December 31, 2013 | 30,459 | $ | 14.04 | ||||||||||
Schedule Of Stock Option Exercised Additional Information [Table Text Block] | ' | ||||||||||||
Additional information about stock options exercised is presented below: | |||||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Intrinsic value of options exercised (on exercise date) | $ | 126 | $ | 2 | $ | 32 | |||||||
Cash received from options exercised | 1,244 | 5 | 57 | ||||||||||
Excess tax benefit realized from options exercised | $ | 29 | $ | 1 | $ | 12 | |||||||
Schedule of Unrecognized Compensation Cost, Nonvested Awards [Table Text Block] | ' | ||||||||||||
As of December 31, 2013, there was $30,000 of total unrecognized compensation cost related to outstanding unvested options that will be recognized over the following periods: | |||||||||||||
(Dollars in thousands) | |||||||||||||
Year | Amount | ||||||||||||
2014 | $ | 22 | |||||||||||
2015 | 8 | ||||||||||||
Total | $ | 30 | |||||||||||
Schedule Of Unrecognized Compensation Cost Nonvested Restricted Shares [Table Text Block] | ' | ||||||||||||
As of December 31, 2013, there was $47,000 of total unrecognized compensation cost related to outstanding unvested restricted shares that will be recognized over the following periods: | |||||||||||||
(Dollars in thousands) | |||||||||||||
Year | Amount | ||||||||||||
2014 | $ | 35 | |||||||||||
2015 | 12 | ||||||||||||
Total | $ | 47 | |||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||||||
Fair value estimates of the Company’s financial instruments as of December 31, 2013 and 2012, including methods and assumptions utilized, are set forth below: | |||||||||||||||||
(Dollars in thousands) | As of December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||
amount | fair value | amount | fair value | ||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 29,735 | $ | 29,735 | $ | 14,920 | $ | 14,920 | |||||||||
Investment securities: | |||||||||||||||||
Available-for-sale | 300,246 | 300,246 | 213,300 | 213,300 | |||||||||||||
Other securities | 5,271 | 5,271 | 5,238 | 5,238 | |||||||||||||
Loans, net | 414,016 | 420,475 | 315,914 | 317,335 | |||||||||||||
Loans held for sale, net | 7,864 | 7,864 | 7,163 | 7,179 | |||||||||||||
Mortgage servicing rights | 2,377 | 3,491 | 1,679 | 1,859 | |||||||||||||
Derivative financial instruments | 265 | 265 | 334 | 334 | |||||||||||||
Accrued interest receivable | 2,581 | 2,581 | 2,589 | 2,589 | |||||||||||||
Financial liabilities: | |||||||||||||||||
Non-maturity deposits | $ | 501,291 | $ | 501,291 | $ | 311,565 | $ | 311,565 | |||||||||
Time deposits | 186,195 | 186,222 | 170,935 | 171,961 | |||||||||||||
FHLB borrowings | 35,689 | 38,087 | 38,426 | 42,904 | |||||||||||||
Other borrowings | 33,055 | 29,351 | 21,541 | 19,273 | |||||||||||||
Derivative financial instruments | 187 | 187 | 28 | 28 | |||||||||||||
Accrued interest payable | 335 | 335 | 410 | 410 | |||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | ' | ||||||||||||||||
The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis at December 31, 2013 and 2012 allocated to the appropriate fair value hierarchy: | |||||||||||||||||
(Dollars in thousands) | As of December 31, 2013 | ||||||||||||||||
Fair value hierarchy | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
U. S. treasury securities | $ | 500 | $ | 500 | $ | - | $ | - | |||||||||
U. S. federal agency obligations | 19,643 | - | 19,643 | - | |||||||||||||
Municipal obligations, tax exempt | 91,793 | - | 91,793 | - | |||||||||||||
Municipal obligations, taxable | 52,472 | - | 52,472 | - | |||||||||||||
Mortgage-backed securities | 125,593 | - | 125,593 | - | |||||||||||||
Common stocks | 1,103 | 1,103 | - | - | |||||||||||||
Certificates of deposit | 9,142 | - | 9,142 | - | |||||||||||||
Derivative financial instruments | 265 | - | 265 | - | |||||||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments | 187 | - | 187 | - | |||||||||||||
As of December 31, 2012 | |||||||||||||||||
Fair value hierarchy | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||
U. S. federal agency obligations | $ | 8,848 | $ | - | $ | 8,848 | $ | - | |||||||||
Municipal obligations, tax exempt | 77,286 | - | 77,286 | - | |||||||||||||
Municipal obligations, taxable | 38,142 | - | 38,142 | - | |||||||||||||
Mortgage-backed securities | 81,848 | - | 81,848 | - | |||||||||||||
Common stocks | 902 | 902 | - | - | |||||||||||||
Certificates of deposit | 6,274 | - | 6,274 | - | |||||||||||||
Derivative financial instruments | 334 | - | 334 | - | |||||||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments | 28 | - | 28 | - | |||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | ||||||||||||||||
The following table represents the Company’s financial instruments that are measured at fair value on a non-recurring basis at December 31, 2013 and 2012 allocated to the appropriate fair value hierarchy: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
Fair value hierarchy | Total gains | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | / (losses) | |||||||||||||
Assets: | |||||||||||||||||
Impaired loans | $ | 15,805 | $ | - | $ | - | $ | 15,805 | $ | -564 | |||||||
Loans held for sale, net | 7,864 | - | 7,864 | - | - | ||||||||||||
Mortgage servicing rights | 3,491 | - | - | 3,491 | 212 | ||||||||||||
Real estate owned, net | $ | 400 | $ | - | $ | - | $ | 400 | $ | -135 | |||||||
As of December 31, 2012 | |||||||||||||||||
Fair value hierarchy | Total gains | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | / (losses) | |||||||||||||
Assets: | |||||||||||||||||
Impaired loans | $ | 13,693 | $ | - | $ | - | $ | 13,693 | $ | -758 | |||||||
Loans held for sale, net | 7,179 | - | 7,179 | - | - | ||||||||||||
Mortgage servicing rights | 1,859 | - | - | 1,859 | -212 | ||||||||||||
Real estate owned, net | $ | 2,444 | $ | - | $ | - | $ | 2,444 | $ | -175 | |||||||
Regulatory_Capital_Requirement1
Regulatory Capital Requirements (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Banking and Thrift [Abstract] | ' | |||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements for Mortgage Companies [Table Text Block] | ' | |||||||||||||||||||||
The following is a comparison of the Company’s regulatory capital to minimum capital requirements at December 31, 2013 and 2012: | ||||||||||||||||||||||
To be well-capitalized | ||||||||||||||||||||||
under prompt | ||||||||||||||||||||||
(Dollars in thousands) | For capital | corrective | ||||||||||||||||||||
Actual | adequacy purposes | action provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||
Leverage | $ | 58,605 | 7.89 | % | $ | 29,710 | 4 | % | $ | 37,137 | 4 | % | ||||||||||
Tier 1 Capital | $ | 58,605 | 11.61 | % | $ | 20,189 | 4 | % | $ | 30,283 | 4 | % | ||||||||||
Total Risk Based Capital | $ | 69,888 | 13.85 | % | $ | 40,378 | 8 | % | $ | 50,472 | 8 | % | ||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
Leverage | $ | 61,839 | 10.09 | % | $ | 24,504 | 4 | % | $ | 30,631 | 5 | % | ||||||||||
Tier 1 Capital | $ | 61,839 | 16.39 | % | $ | 15,092 | 4 | % | $ | 22,638 | 6 | % | ||||||||||
Total Risk Based Capital | $ | 67,273 | 17.83 | % | $ | 30,184 | 8 | % | $ | 37,731 | 10 | % | ||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | ' | |||||||||||||||||||||
The following is a comparison of the Bank’s regulatory capital to minimum capital requirements at December 31, 2013 and 2012: | ||||||||||||||||||||||
To be well-capitalized | ||||||||||||||||||||||
under prompt | ||||||||||||||||||||||
(Dollars in thousands) | For capital | corrective | ||||||||||||||||||||
Actual | adequacy purposes | action provisions | ||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||
As of December 31, 2013 | ||||||||||||||||||||||
Leverage | $ | 62,553 | 8.46 | % | $ | 29,565 | 4 | % | $ | 36,956 | 5 | % | ||||||||||
Tier 1 Capital | $ | 62,553 | 12.43 | % | $ | 20,133 | 4 | % | $ | 30,200 | 6 | % | ||||||||||
Total Risk Based Capital | $ | 68,243 | 13.56 | % | $ | 40,267 | 8 | % | $ | 50,333 | 10 | % | ||||||||||
As of December 31, 2012 | ||||||||||||||||||||||
Leverage | $ | 60,463 | 9.9 | % | $ | 24,433 | 4 | % | $ | 30,541 | 5 | % | ||||||||||
Tier 1 Capital | $ | 60,463 | 16.09 | % | $ | 15,029 | 4 | % | $ | 22,543 | 6 | % | ||||||||||
Total Risk Based Capital | $ | 65,124 | 17.33 | % | $ | 30,057 | 8 | % | $ | 37,571 | 10 | % | ||||||||||
Parent_Company_Condensed_Finan1
Parent Company Condensed Financial Statements (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Parent Company Condensed Financial Statements [Abstract] | ' | ||||||||||
Condensed Financial Statements [Table Text Block] | ' | ||||||||||
The following is condensed financial information of the parent company as of December 31, 2013 and 2012, and for the years ended December 31, 2013, 2012 and 2011: | |||||||||||
Condensed Balance Sheets | |||||||||||
(Dollars in thousands) | As of December 31, | ||||||||||
2013 | 2012 | ||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 649 | $ | 855 | |||||||
Investment securities | 1,366 | 1,194 | |||||||||
Investment in Bank | 80,975 | 77,121 | |||||||||
Other | 504 | 781 | |||||||||
Total assets | $ | 83,494 | $ | 79,951 | |||||||
Liabilities and stockholders’ equity: | |||||||||||
Other borrowings | $ | 20,684 | $ | 16,496 | |||||||
Other | 118 | 122 | |||||||||
Stockholders’ equity | 62,692 | 63,333 | |||||||||
Total liabilities and stockholders’ equity | $ | 83,494 | $ | 79,951 | |||||||
Condensed Statements of Earnings | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Dividends from Bank | $ | 1,180 | $ | 4,978 | $ | 4,723 | |||||
Interest income | 27 | 27 | 21 | ||||||||
Other non-interest income | 7 | 7 | 7 | ||||||||
Gain on sale of investment securities | - | 9 | - | ||||||||
Interest expense | -446 | -495 | -607 | ||||||||
Other expense, net | -309 | -262 | -341 | ||||||||
Earnings before equity in undistributed earnings of Bank | 459 | 4,264 | 3,803 | ||||||||
Increase in undistributed equity of Bank | 3,948 | 1,858 | 367 | ||||||||
Earnings before income taxes | 4,407 | 6,122 | 4,170 | ||||||||
Income tax benefit | -248 | -245 | -314 | ||||||||
Net earnings | $ | 4,655 | $ | 6,367 | $ | 4,484 | |||||
Condensed Statements of Cash Flows | |||||||||||
(Dollars in thousands) | Years ended December 31, | ||||||||||
2013 | 2012 | 2011 | |||||||||
Cash flows from operating activities: | |||||||||||
Net earnings | $ | 4,655 | $ | 6,367 | $ | 4,484 | |||||
Increase in undistributed equity of Bank | -3,948 | -1,858 | -367 | ||||||||
Loss on impairment of investment securities | - | - | 72 | ||||||||
Gain on sale of investment securities | - | -9 | - | ||||||||
Other | 69 | 68 | -30 | ||||||||
Net cash provided by operating activities | 776 | 4,568 | 4,159 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchase of investment securities | - | - | - | ||||||||
Proceeds from sales and maturities of investment securities | 17 | 28 | - | ||||||||
Net cash provided by investing activities | 17 | 28 | - | ||||||||
Cash flows from financing activities: | |||||||||||
Issuance of shares under stock option plan | 1,244 | 5 | 57 | ||||||||
Proceeds from other borrowings | - | 2,600 | 2,485 | ||||||||
Repayments on other borrowings | - | -4,240 | -4,685 | ||||||||
Payment of dividends | -2,243 | -2,121 | -2,014 | ||||||||
Net cash used in financing activities | -999 | -3,756 | -4,157 | ||||||||
Net (decrease) increase in cash | -206 | 840 | 2 | ||||||||
Cash at beginning of year | 855 | 15 | 13 | ||||||||
Cash at end of year | $ | 649 | $ | 855 | $ | 15 | |||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Earning Per Share Basic And Diluted [Line Items] | ' | ' | ' | |||
Net earnings available to common shareholders | $4,655 | $6,367 | $4,484 | |||
Weighted average common shares outstanding - basic (in shares) | 3,084,566 | 3,068,133 | 3,062,209 | |||
Assumed exercise of stock options | 46,900 | 26,345 | 0 | |||
Weighted average common shares outstanding - diluted (in shares) | 3,131,466 | 3,094,477 | 3,062,209 | |||
Earnings Per Share [Abstract] | ' | ' | ' | |||
Basic (in dollars per share) | $1.51 | [1] | $2.08 | [1] | $1.46 | [1] |
Diluted (in dollars per share) | $1.49 | [1] | $2.06 | [1] | $1.46 | [1] |
[1] | All per share amounts have been adjusted to give effect to the 5% stock dividends paid during December 2013, 2012 and 2011. |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Textual) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounting Policies [Line Items] | ' | ' | ' |
Income Tax Examination, Likelihood of Unfavorable Settlement | 'greater than 50 percent likelihood | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | 69,211 | 525,621 |
Stock Dividend Percentage | 5.00% | 5.00% | 5.00% |
Acquisition_Details
Acquisition (Details) (USD $) | Nov. 01, 2013 |
In Thousands, unless otherwise specified | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | $194,361 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 194,361 |
Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | -1,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | -1,000 |
Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 195,361 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 195,361 |
Deposits Liabilities [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 181,875 |
Deposits Liabilities [Member] | Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 0 |
Deposits Liabilities [Member] | Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 181,875 |
Borrowings [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 7,489 |
Borrowings [Member] | Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 0 |
Borrowings [Member] | Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 7,489 |
Subordinated Debentures [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 4,155 |
Subordinated Debentures [Member] | Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | -1,000 |
Subordinated Debentures [Member] | Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 5,155 |
Accrued Interest, Taxes, and Other Liabilities [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 842 |
Accrued Interest, Taxes, and Other Liabilities [Member] | Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 0 |
Accrued Interest, Taxes, and Other Liabilities [Member] | Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities, Total | 842 |
Cash and Cash Equivalents [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 25,028 |
Cash and Cash Equivalents [Member] | Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | -6,288 |
Cash and Cash Equivalents [Member] | Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 31,316 |
Available-for-sale Securities [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 55,779 |
Available-for-sale Securities [Member] | Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | -941 |
Available-for-sale Securities [Member] | Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 56,720 |
Other Securities [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 565 |
Other Securities [Member] | Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 0 |
Other Securities [Member] | Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 565 |
Loans Receivable [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 95,118 |
Loans Receivable [Member] | Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | -1,933 |
Loans Receivable [Member] | Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 97,051 |
Loans Held for Sale [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 3,470 |
Loans Held for Sale [Member] | Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 0 |
Loans Held for Sale [Member] | Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 3,470 |
Property, Plant and Equipment [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 5,969 |
Property, Plant and Equipment [Member] | Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 1,611 |
Property, Plant and Equipment [Member] | Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 4,358 |
Goodwill [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 4,456 |
Goodwill [Member] | Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 4,456 |
Goodwill [Member] | Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 0 |
Other Intangible Assets [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 2,221 |
Other Intangible Assets [Member] | Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 2,060 |
Other Intangible Assets [Member] | Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 161 |
Accrued Interest and Other Assets [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 1,755 |
Accrued Interest and Other Assets [Member] | Fair Value Adjustments [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 35 |
Accrued Interest and Other Assets [Member] | Citizens Bank [Member] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets [Abstract] | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | $1,720 |
Acquisition_Details_1
Acquisition (Details 1) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition [Line Items] | ' | ' |
Total interest income | $29,055 | $31,661 |
Net earnings | $6,537 | $8,038 |
Earnings per share: | ' | ' |
Basic | $2.12 | $2.62 |
Diluted | $2.09 | $2.60 |
Acquisition_Details_Textual
Acquisition (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | ' | ' |
Percentage Of Business Acquisition | 100.00% | ' |
Business Acquisition, Effective Date of Acquisition | 1-Apr-12 | ' |
Business Acquisition Investments | $14,200,000 | ' |
Business Acquisition Loans | 15,000,000 | ' |
Business Acquisition Deposits | 35,000,000 | ' |
Unpaid Contractual Loan Amount | 15,100,000 | ' |
Business Acquisition Cost Included In Professional Fees | ' | 147,000 |
Business Combination Purchase Price Allocation Goodwill Amount | 181,000 | ' |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 51,000 | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 5,200,000 | ' |
Business Combination Cost Of Acquired Entity Purchase Price | 1,300,000 | ' |
Goodwill | 17,532,000 | 13,075,000 |
First Capital [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 5,500,000 | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 6,300,000 | ' |
Goodwill | 4,500,000 | ' |
Business Combination Subordinated Debentures at Fair Value | 4,200,000 | ' |
Business Combination Discount on Subordinated Debentures | 1,000,000 | ' |
Business Combination, Acquisition Related Costs | 1,900,000 | ' |
First Capital [Member] | Core Deposits [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | 1,700,000 | ' |
First Capital [Member] | Subordinated Debentures [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 5,000,000 | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities | 5,200,000 | ' |
Wellsville Bank [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Business Acquisition, Date of Acquisition Agreement | 1-Apr-12 | ' |
Business Combination Purchase Price Allocation Current Assets Cash And Cash Equivalents | $3,700,000 | ' |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Gross carrying amount | $10,900 | $8,011 |
Intangible assets, Accumulated amortization | -6,089 | -5,405 |
Intangible assets, Valuation allowance | 0 | -212 |
Intangible assets, Net carrying amount | 4,811 | 2,394 |
Core Deposits [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Gross carrying amount | 6,684 | 4,973 |
Intangible assets, Accumulated amortization | -4,592 | -4,258 |
Intangible assets, Valuation allowance | 0 | 0 |
Intangible assets, Net carrying amount | 2,092 | 715 |
Lease intangible asset [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Gross carrying amount | 350 | ' |
Intangible assets, Accumulated amortization | -8 | ' |
Intangible assets, Valuation allowance | 0 | ' |
Intangible assets, Net carrying amount | 342 | ' |
Mortgage Servicing Rights [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, Gross carrying amount | 3,866 | 3,038 |
Intangible assets, Accumulated amortization | -1,489 | -1,147 |
Intangible assets, Valuation allowance | 0 | -212 |
Intangible assets, Net carrying amount | $2,377 | $1,679 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 | $1,169 | ' |
2015 | 1,055 | ' |
2016 | 954 | ' |
2017 | 793 | ' |
2018 | 253 | ' |
Thereafter | 587 | ' |
Total | $4,811 | $2,394 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Details Textual) (USD $) | 12 Months Ended | ||||
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 01, 2013 | Nov. 01, 2013 | |
Core Deposits [Member] | The Wellsville Bank [Member] | Citizens Bank [Member] | |||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite-Lived Core Deposits, Gross | ' | $1,700,000 | ' | ' | ' |
Total deposits | 482,500,000 | 687,486,000 | 308,000 | 35,000,000 | 181,900,000 |
Valuation Allowance Mortgage Servicing Rights | 212,000 | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Off-market Lease, Favorable, Gross | ' | $350,000 | ' | ' | ' |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | $301,739 | $207,826 |
Gross unrealized gains | 3,193 | 5,676 |
Gross unrealized losses | -4,686 | -202 |
Estimated fair value | 300,246 | 213,300 |
US Treasury Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 500 | ' |
Gross unrealized gains | 0 | ' |
Gross unrealized losses | 0 | ' |
Estimated fair value | 500 | ' |
Agency Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 20,167 | 8,804 |
Gross unrealized gains | 10 | 50 |
Gross unrealized losses | -534 | -6 |
Estimated fair value | 19,643 | 8,848 |
Nontaxable Municipal Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 90,700 | 73,699 |
Gross unrealized gains | 1,712 | 3,618 |
Gross unrealized losses | -619 | -31 |
Estimated fair value | 91,793 | 77,286 |
Taxable Municipal Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 53,244 | 37,334 |
Gross unrealized gains | 270 | 818 |
Gross unrealized losses | -1,042 | -10 |
Estimated fair value | 52,472 | 38,142 |
Collateralized Mortgage Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 127,384 | 81,113 |
Gross unrealized gains | 700 | 889 |
Gross unrealized losses | -2,491 | -154 |
Estimated fair value | 125,593 | 81,848 |
Certificates of Deposit [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 9,142 | 6,274 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 9,142 | 6,274 |
Common Stock [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost | 602 | 602 |
Gross unrealized gains | 501 | 301 |
Gross unrealized losses | 0 | -1 |
Estimated fair value | $1,103 | $902 |
Investment_Securities_Details_
Investment Securities (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Number | Number | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
No. of securities | 267 | 51 |
Fair value, Less than 12 months | $164,963 | $37,853 |
Unrealized losses, Less than 12 months | -4,475 | -200 |
Fair value, 12 months or longer | 6,380 | 209 |
Unrealized losses, 12 months or longer | -211 | -2 |
Total, Fair value | 171,343 | 38,062 |
Total, Unrealized losses | -4,686 | -202 |
Agency Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
No. of securities | 18 | 2 |
Fair value, Less than 12 months | 16,028 | 2,241 |
Unrealized losses, Less than 12 months | -436 | -6 |
Fair value, 12 months or longer | 2,149 | 0 |
Unrealized losses, 12 months or longer | -98 | 0 |
Total, Fair value | 18,177 | 2,241 |
Total, Unrealized losses | -534 | -6 |
Nontaxable Municipal Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
No. of securities | 91 | 16 |
Fair value, Less than 12 months | 24,496 | 4,669 |
Unrealized losses, Less than 12 months | -518 | -31 |
Fair value, 12 months or longer | 3,151 | 0 |
Unrealized losses, 12 months or longer | -101 | 0 |
Total, Fair value | 27,647 | 4,669 |
Total, Unrealized losses | -619 | -31 |
Taxable Municipal Bonds [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
No. of securities | 88 | 8 |
Fair value, Less than 12 months | 35,299 | 2,948 |
Unrealized losses, Less than 12 months | -1,030 | -8 |
Fair value, 12 months or longer | 1,080 | 209 |
Unrealized losses, 12 months or longer | -12 | -2 |
Total, Fair value | 36,379 | 3,157 |
Total, Unrealized losses | -1,042 | -10 |
Collateralized Mortgage Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
No. of securities | 70 | 24 |
Fair value, Less than 12 months | 89,140 | 27,974 |
Unrealized losses, Less than 12 months | -2,491 | -154 |
Fair value, 12 months or longer | 0 | 0 |
Unrealized losses, 12 months or longer | 0 | 0 |
Total, Fair value | 89,140 | 27,974 |
Total, Unrealized losses | -2,491 | -154 |
Common Stock [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
No. of securities | ' | 1 |
Fair value, Less than 12 months | ' | 21 |
Unrealized losses, Less than 12 months | ' | -1 |
Fair value, 12 months or longer | ' | 0 |
Unrealized losses, 12 months or longer | ' | 0 |
Total, Fair value | ' | 21 |
Total, Unrealized losses | ' | ($1) |
Investment_Securities_Details_1
Investment Securities (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost, Due in less than one year | $11,956 | ' |
Amortized cost, Due after one year but within five years | 167,118 | ' |
Amortized cost, Due after five years but within ten years | 90,324 | ' |
Amortized cost, Due after ten years | 31,739 | ' |
Amortized cost, Total | 301,739 | ' |
Estimated fair value, Due in less than one year | 12,057 | ' |
Estimated fair value, Due after one year but within five years | 166,881 | ' |
Estimated fair value, Due after five years but within ten years | 89,370 | ' |
Estimated fair value, Due after ten years | 30,835 | ' |
Available-for-sale, at fair value | 300,246 | 213,300 |
Common Stock [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized cost, Total | 602 | ' |
Available-for-sale, at fair value | $1,103 | $902 |
Investment_Securities_Details_2
Investment Securities (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Realized gains | $0 | $795 | $186 |
Realized losses | 0 | -309 | 0 |
Total | $0 | $486 | $186 |
Investment_Securities_Details_3
Investment Securities (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Federal Home Loan Bank Stock | $3,200,000 | $3,400,000 |
Federal Reserve Bank Stock | 1,900,000 | 1,800,000 |
Other Assets, Miscellaneous | 111,000 | 113,000 |
Equity Method Investment, Ownership Percentage | 10.00% | ' |
Collateral Securities Repledged, Delivered, or Used | $171,200,000 | ' |
Loans_and_Allowance_for_Loan_L2
Loans and Allowance for Loan Losses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Total gross loans | $419,369 | $320,458 | ' | ' |
Net deferred loan costs and loans in process | 187 | 37 | ' | ' |
Allowance for loan losses | -5,540 | -4,581 | -4,707 | -4,967 |
Loans, net | 414,016 | 315,914 | 314,574 | ' |
Residential Real Estate [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Total gross loans | 125,087 | 88,454 | ' | ' |
Allowance for loan losses | -732 | -714 | -560 | -395 |
Loans, net | 125,087 | 88,454 | 79,108 | ' |
Construction Loans [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Total gross loans | 23,776 | 23,435 | ' | ' |
Allowance for loan losses | -1,343 | -1,214 | -928 | -1,193 |
Loans, net | 23,776 | 23,435 | 21,672 | ' |
Commercial Real Estate [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Total gross loans | 119,390 | 88,790 | ' | ' |
Allowance for loan losses | -1,970 | -1,313 | -1,791 | -1,571 |
Loans, net | 119,390 | 88,790 | 93,786 | ' |
Commercial Loan [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Total gross loans | 61,383 | 64,570 | ' | ' |
Allowance for loan losses | -769 | -707 | -745 | -1,173 |
Loans, net | 61,383 | 64,570 | 57,006 | ' |
Agriculture Loans [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Total gross loans | 62,287 | 31,935 | ' | ' |
Allowance for loan losses | -545 | -367 | -433 | -397 |
Loans, net | 62,287 | 31,935 | 39,052 | ' |
Municipal Bonds [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Total gross loans | 8,846 | 9,857 | ' | ' |
Allowance for loan losses | -47 | -107 | -130 | -99 |
Loans, net | 8,846 | 9,857 | 10,366 | ' |
Consumer Loan [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Total gross loans | 18,600 | 13,417 | ' | ' |
Allowance for loan losses | -134 | -159 | -120 | -139 |
Loans, net | $18,600 | $13,417 | $13,584 | ' |
Loans_and_Allowance_for_Loan_L3
Loans and Allowance for Loan Losses (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for loan losses: | ' | ' | ' |
Balance | $4,581 | $4,707 | $4,967 |
Charge-offs | -616 | -2,127 | -2,440 |
Recoveries | 775 | 101 | 180 |
Provision for loan losses | 800 | 1,900 | 2,000 |
Balance | 5,540 | 4,581 | 4,707 |
Allowance for loan losses: | ' | ' | ' |
Individually evaluated for loss | 951 | 901 | 205 |
Collectively evaluated for loss | 4,589 | 3,680 | 4,502 |
Total | 5,540 | 4,581 | 4,707 |
Loan balances: | ' | ' | ' |
Individually evaluated for loss | 16,756 | 14,594 | 2,490 |
Collectively evaluated for loss | 402,613 | 305,864 | 312,084 |
Total | 414,016 | 315,914 | 314,574 |
Residential Real Estate [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance | 714 | 560 | 395 |
Charge-offs | -93 | -70 | -110 |
Recoveries | 202 | 20 | 41 |
Provision for loan losses | -91 | 204 | 234 |
Balance | 732 | 714 | 560 |
Allowance for loan losses: | ' | ' | ' |
Individually evaluated for loss | 82 | 165 | 65 |
Collectively evaluated for loss | 650 | 549 | 495 |
Total | 732 | 714 | 560 |
Loan balances: | ' | ' | ' |
Individually evaluated for loss | 782 | 739 | 1,280 |
Collectively evaluated for loss | 124,305 | 87,715 | 77,828 |
Total | 125,087 | 88,454 | 79,108 |
Construction Loans [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance | 1,214 | 928 | 1,193 |
Charge-offs | -53 | -1,749 | -1,173 |
Recoveries | 523 | 4 | 4 |
Provision for loan losses | -341 | 2,031 | 904 |
Balance | 1,343 | 1,214 | 928 |
Allowance for loan losses: | ' | ' | ' |
Individually evaluated for loss | 234 | 388 | 8 |
Collectively evaluated for loss | 1,109 | 826 | 920 |
Total | 1,343 | 1,214 | 928 |
Loan balances: | ' | ' | ' |
Individually evaluated for loss | 8,160 | 8,752 | 225 |
Collectively evaluated for loss | 15,616 | 14,683 | 21,447 |
Total | 23,776 | 23,435 | 21,672 |
Commercial Real Estate [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance | 1,313 | 1,791 | 1,571 |
Charge-offs | -11 | 0 | -434 |
Recoveries | 0 | 0 | 37 |
Provision for loan losses | 668 | -478 | 617 |
Balance | 1,970 | 1,313 | 1,791 |
Allowance for loan losses: | ' | ' | ' |
Individually evaluated for loss | 140 | 0 | 0 |
Collectively evaluated for loss | 1,830 | 1,313 | 1,791 |
Total | 1,970 | 1,313 | 1,791 |
Loan balances: | ' | ' | ' |
Individually evaluated for loss | 2,936 | 2,833 | 17 |
Collectively evaluated for loss | 116,454 | 85,957 | 93,769 |
Total | 119,390 | 88,790 | 93,786 |
Commercial Loan [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance | 707 | 745 | 1,173 |
Charge-offs | -200 | -70 | -590 |
Recoveries | 20 | 12 | 14 |
Provision for loan losses | 242 | 20 | 148 |
Balance | 769 | 707 | 745 |
Allowance for loan losses: | ' | ' | ' |
Individually evaluated for loss | 488 | 268 | 35 |
Collectively evaluated for loss | 281 | 439 | 710 |
Total | 769 | 707 | 745 |
Loan balances: | ' | ' | ' |
Individually evaluated for loss | 4,148 | 1,475 | 78 |
Collectively evaluated for loss | 57,235 | 63,095 | 56,928 |
Total | 61,383 | 64,570 | 57,006 |
Agriculture Loans [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance | 367 | 433 | 397 |
Charge-offs | 0 | 0 | -1 |
Recoveries | 0 | 39 | 35 |
Provision for loan losses | 178 | -105 | 2 |
Balance | 545 | 367 | 433 |
Allowance for loan losses: | ' | ' | ' |
Individually evaluated for loss | 0 | 0 | 0 |
Collectively evaluated for loss | 545 | 367 | 433 |
Total | 545 | 367 | 433 |
Loan balances: | ' | ' | ' |
Individually evaluated for loss | 0 | 5 | 63 |
Collectively evaluated for loss | 62,287 | 31,930 | 38,989 |
Total | 62,287 | 31,935 | 39,052 |
Municipal Bonds [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance | 107 | 130 | 99 |
Charge-offs | -65 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision for loan losses | 5 | -23 | 31 |
Balance | 47 | 107 | 130 |
Allowance for loan losses: | ' | ' | ' |
Individually evaluated for loss | 0 | 65 | 65 |
Collectively evaluated for loss | 47 | 42 | 65 |
Total | 47 | 107 | 130 |
Loan balances: | ' | ' | ' |
Individually evaluated for loss | 706 | 772 | 784 |
Collectively evaluated for loss | 8,140 | 9,085 | 9,582 |
Total | 8,846 | 9,857 | 10,366 |
Consumer Loan [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance | 159 | 120 | 139 |
Charge-offs | -194 | -238 | -132 |
Recoveries | 30 | 26 | 49 |
Provision for loan losses | 139 | 251 | 64 |
Balance | 134 | 159 | 120 |
Allowance for loan losses: | ' | ' | ' |
Individually evaluated for loss | 7 | 15 | 32 |
Collectively evaluated for loss | 127 | 144 | 88 |
Total | 134 | 159 | 120 |
Loan balances: | ' | ' | ' |
Individually evaluated for loss | 24 | 18 | 43 |
Collectively evaluated for loss | 18,576 | 13,399 | 13,541 |
Total | $18,600 | $13,417 | $13,584 |
Loans_and_Allowance_for_Loan_L4
Loans and Allowance for Loan Losses (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans, 30-59days delinquent and accruing | $624 | $670 |
Loans, 60-89 days delinquent and accruing | 813 | 1,526 |
Loans, 90 days or more delinquent and accruing | 0 | 0 |
Loans, Total past due loans accruing | 1,437 | 2,196 |
Loans, Non-accrual loans | 9,836 | 9,108 |
Loans, Total | 11,273 | 11,304 |
Percent of gross loans, 30-59 days delinquent and accruing | 0.15% | 0.21% |
Percent of gross loans, 60-89 days delinquent and accruing | 0.19% | 0.48% |
Percent of gross loans, 90 days or more delinquent and accruing | 0.00% | 0.00% |
Percentage of gross loans, Total past due loans accruing | 0.34% | 0.69% |
Percent of gross loans, Non-accrual loans | 2.35% | 2.84% |
Percentage of gross loans, Total | 2.69% | 3.53% |
Residential Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans, 30-59days delinquent and accruing | 311 | 282 |
Loans, 60-89 days delinquent and accruing | 793 | 1,362 |
Loans, 90 days or more delinquent and accruing | 0 | 0 |
Loans, Total past due loans accruing | 1,104 | 1,644 |
Loans, Non-accrual loans | 776 | 731 |
Loans, Total | 1,880 | 2,375 |
Construction Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans, 30-59days delinquent and accruing | 18 | 18 |
Loans, 60-89 days delinquent and accruing | 0 | 0 |
Loans, 90 days or more delinquent and accruing | 0 | 0 |
Loans, Total past due loans accruing | 18 | 18 |
Loans, Non-accrual loans | 2,165 | 3,915 |
Loans, Total | 2,183 | 3,933 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans, 30-59days delinquent and accruing | 0 | 166 |
Loans, 60-89 days delinquent and accruing | 9 | 82 |
Loans, 90 days or more delinquent and accruing | 0 | 0 |
Loans, Total past due loans accruing | 9 | 248 |
Loans, Non-accrual loans | 2,658 | 2,833 |
Loans, Total | 2,667 | 3,081 |
Commercial Loan [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans, 30-59days delinquent and accruing | 187 | 62 |
Loans, 60-89 days delinquent and accruing | 0 | 17 |
Loans, 90 days or more delinquent and accruing | 0 | 0 |
Loans, Total past due loans accruing | 187 | 79 |
Loans, Non-accrual loans | 4,148 | 1,475 |
Loans, Total | 4,335 | 1,554 |
Agriculture Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans, 30-59days delinquent and accruing | 23 | 0 |
Loans, 60-89 days delinquent and accruing | 0 | 0 |
Loans, 90 days or more delinquent and accruing | 0 | 0 |
Loans, Total past due loans accruing | 23 | 0 |
Loans, Non-accrual loans | 0 | 5 |
Loans, Total | 23 | 5 |
Municipal Bonds [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans, 30-59days delinquent and accruing | 0 | 0 |
Loans, 60-89 days delinquent and accruing | 0 | 0 |
Loans, 90 days or more delinquent and accruing | 0 | 0 |
Loans, Total past due loans accruing | 0 | 0 |
Loans, Non-accrual loans | 65 | 131 |
Loans, Total | 65 | 131 |
Consumer Loan [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Loans, 30-59days delinquent and accruing | 85 | 142 |
Loans, 60-89 days delinquent and accruing | 11 | 65 |
Loans, 90 days or more delinquent and accruing | 0 | 0 |
Loans, Total past due loans accruing | 96 | 207 |
Loans, Non-accrual loans | 24 | 18 |
Loans, Total | $120 | $225 |
Loans_and_Allowance_for_Loan_L5
Loans and Allowance for Loan Losses (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid contractual principal | $14,596 | $16,618 |
Impaired loan balance | 16,756 | 14,594 |
Impaired loans without an allowance | 11,529 | 10,329 |
Impaired loans with an allowance | 5,227 | 4,265 |
Related allowance recorded | 951 | 901 |
Year-to-date average loan balance | 13,219 | 15,758 |
Year-to-date interest income recognized | 317 | 344 |
Residential Real Estate [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid contractual principal | 782 | 1,029 |
Impaired loan balance | 782 | 739 |
Impaired loans without an allowance | 326 | 57 |
Impaired loans with an allowance | 456 | 682 |
Related allowance recorded | 82 | 165 |
Year-to-date average loan balance | 800 | 767 |
Year-to-date interest income recognized | 0 | 19 |
Construction Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid contractual principal | 9,895 | 10,486 |
Impaired loan balance | 8,160 | 8,752 |
Impaired loans without an allowance | 6,098 | 6,395 |
Impaired loans with an allowance | 2,062 | 2,357 |
Related allowance recorded | 234 | 388 |
Year-to-date average loan balance | 8,383 | 9,211 |
Year-to-date interest income recognized | 279 | 302 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid contractual principal | 2,936 | 2,833 |
Impaired loan balance | 2,936 | 2,833 |
Impaired loans without an allowance | 278 | 2,833 |
Impaired loans with an allowance | 2,658 | 0 |
Related allowance recorded | 140 | 0 |
Year-to-date average loan balance | 3,046 | 3,352 |
Year-to-date interest income recognized | 18 | 0 |
Commercial Loan [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid contractual principal | 187 | 1,475 |
Impaired loan balance | 4,148 | 1,475 |
Impaired loans without an allowance | 4,115 | 395 |
Impaired loans with an allowance | 33 | 1,080 |
Related allowance recorded | 488 | 268 |
Year-to-date average loan balance | 192 | 1,621 |
Year-to-date interest income recognized | 0 | 3 |
Agriculture Loans [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid contractual principal | ' | 5 |
Impaired loan balance | ' | 5 |
Impaired loans without an allowance | ' | 5 |
Impaired loans with an allowance | ' | 0 |
Related allowance recorded | ' | 0 |
Year-to-date average loan balance | ' | 8 |
Year-to-date interest income recognized | ' | 0 |
Municipal Bonds [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid contractual principal | 772 | 772 |
Impaired loan balance | 706 | 772 |
Impaired loans without an allowance | 706 | 641 |
Impaired loans with an allowance | 0 | 131 |
Related allowance recorded | 0 | 65 |
Year-to-date average loan balance | 772 | 779 |
Year-to-date interest income recognized | 0 | 20 |
Consumer Loan [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid contractual principal | 24 | 18 |
Impaired loan balance | 24 | 18 |
Impaired loans without an allowance | 6 | 3 |
Impaired loans with an allowance | 18 | 15 |
Related allowance recorded | 7 | 15 |
Year-to-date average loan balance | 26 | 20 |
Year-to-date interest income recognized | $20 | $0 |
Loans_and_Allowance_for_Loan_L6
Loans and Allowance for Loan Losses (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Number | Number |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings, Number of loans | 11 | 13 |
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance | $627 | $2,921 |
Financing Receivable, Modifications, Recorded Investment, Accruing Balance | 6,920 | 5,486 |
Residential Real Estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings, Number of loans | 1 | 2 |
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance | 0 | 485 |
Financing Receivable, Modifications, Recorded Investment, Accruing Balance | 6 | 8 |
Construction Loans [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings, Number of loans | 7 | 7 |
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance | 627 | 2,240 |
Financing Receivable, Modifications, Recorded Investment, Accruing Balance | 5,995 | 4,837 |
Commercial Real Estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings, Number of loans | 1 | 0 |
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance | 0 | 0 |
Financing Receivable, Modifications, Recorded Investment, Accruing Balance | 278 | 0 |
Commercial Loan [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings, Number of loans | 0 | 2 |
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance | 0 | 196 |
Financing Receivable, Modifications, Recorded Investment, Accruing Balance | 0 | 0 |
Municipal Bonds [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings, Number of loans | 2 | 2 |
Financing Receivable, Modifications, Recorded Investment, Non Accrual Balance | 0 | 0 |
Financing Receivable, Modifications, Recorded Investment, Accruing Balance | $641 | $641 |
Loans_and_Allowance_for_Loan_L7
Loans and Allowance for Loan Losses (Details 5) (Directors, Officers And Affiliated Parties [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Directors, Officers And Affiliated Parties [Member] | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Balance | $9,520 |
New loans | 7,983 |
Repayments | -4,094 |
Balance | $13,409 |
Loans_and_Allowance_for_Loan_L8
Loans and Allowance for Loan Losses (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Impaired Financing Receivable Loan Balance Charged Off | $6,000 | ' | ' | ' |
Related allowance recorded | ' | 951,000 | 901,000 | ' |
Loans Receivable, Gross, Commercial, Real Estate, Total | ' | 278,000 | ' | ' |
Provision for Loan and Lease Losses | ' | 800,000 | 1,900,000 | 2,000,000 |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | ' | 511,000 | 164,000 | 47,000 |
Letters of Credit Outstanding, Amount | ' | 69,100,000 | 53,500,000 | ' |
Stand By Letters Of Credit | ' | 1,600,000 | 1,800,000 | ' |
Mortgage Loans on Real Estate [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Related allowance recorded | ' | 234,000 | 521,000 | ' |
Minimum [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Impaired Financing Receivable Loan Balance Charged Off | ' | ' | 14,600,000 | ' |
Maximum [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Impaired Financing Receivable Loan Balance Charged Off | ' | 16,800,000 | ' | ' |
Construction Loans [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Related allowance recorded | ' | 234,000 | 388,000 | ' |
Provision for Loan and Lease Losses | ' | -341,000 | 2,031,000 | 904,000 |
Residential Real Estate [Member] | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Related allowance recorded | ' | 82,000 | 165,000 | ' |
Financing Receivable Outstanding Unpaid Principal Balance | ' | 338,300,000 | 263,500,000 | ' |
Provision For Mortgage Repurchase Reserve | ' | 682,000 | 550,000 | 429,000 |
Mortgage Loans On Real Estate Reserve Amount | ' | 468,000 | 418,000 | ' |
Provision for Loan and Lease Losses | ' | ($91,000) | $204,000 | $234,000 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Land [Member] | Building and Building Improvements [Member] | Building and Building Improvements [Member] | Furniture and equipment [Member] | Furniture and equipment [Member] | Vehicles [Member] | Vehicles [Member] | ||
Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Land | $6,056 | $3,840 | ' | ' | ' | ' | ' | ' | ' |
Office buildings and improvements | 17,734 | 14,045 | ' | ' | ' | ' | ' | ' | ' |
Furniture and equipment | 8,124 | 7,530 | ' | ' | ' | ' | ' | ' | ' |
Automobiles | 492 | 363 | ' | ' | ' | ' | ' | ' | ' |
Total premises and equipment | 32,406 | 25,778 | ' | ' | ' | ' | ' | ' | ' |
Accumulated depreciation | -11,772 | -10,811 | ' | ' | ' | ' | ' | ' | ' |
Total premises and equipment, net | $20,634 | $14,967 | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | ' | ' | 'Indefinite | '50 Years | '10 Years | '15 Years | '3 Years | '5 Years | '2 Years |
Premises_and_Equipment_Details1
Premises and Equipment (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation, Nonproduction | $960 | $953 | $881 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Banking And Thrift [Line Items] | ' |
2014 | $122,891 |
2015 | 35,224 |
2016 | 12,419 |
2017 | 10,295 |
2018 | 5,320 |
Thereafter | 46 |
Total | $186,195 |
Deposits_Details1
Deposits (Details1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Banking And Thrift [Line Items] | ' | ' | ' |
Time deposits | $1,172 | $1,807 | $2,341 |
Money market and NOW | 188 | 313 | 371 |
Savings | 17 | 29 | 48 |
Total | $1,377 | $2,149 | $2,760 |
Federal_Home_Loan_Bank_Borrowi2
Federal Home Loan Bank Borrowings (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ' | ' |
2017 | $10,000 | $10,000 |
2018 | 25,689 | 25,726 |
Total | $35,689 | $35,726 |
2017 - Weighted average rates | 3.64% | 3.64% |
2018 - Weighted average rates | 3.39% | 3.39% |
Federal_Home_Loan_Bank_Borrowi3
Federal Home Loan Bank Borrowings (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ' | ' |
Advances from Federal Home Loan Banks, Total | $35.70 | $35.70 |
Federal Home Loan Bank Line Of Credit Amount Outstanding | 0 | 2.7 |
Line of Credit Facility, Description | 'federal funds rate plus 0.15% (0.19% at December 31, 2013). | ' |
Federal Home Loan Bank Line Of Credit Available Borrowing Capacity | 12.5 | 13.5 |
Federal Home Loan Bank Line Of Credit Total Borrowing Capacity | $50.20 | $52 |
Line of Credit Facility, Interest Rate at Period End | 0.19% | ' |
Other_Borrowings_Details_Textu
Other Borrowings (Details Textual) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2005 | Dec. 31, 2003 |
Other Borrowings Disclosure [Line Items] | ' | ' | ' | ' |
Subordinated Debt | $5.20 | ' | $8.20 | $8.20 |
Debt Conversion, Original Debt, Due Date, Year | '2036 | ' | '2036 | '2034 |
Debt Instrument, Interest Rate Terms | 'LIBOR plus 1.62% | ' | 'LIBOR plus 1.34% | 'LIBOR plus 2.85% |
Line of Credit Facility, Remaining Borrowing Capacity | 7.5 | ' | ' | ' |
Line of Credit Facility, Expiration Date | 1-Nov-14 | ' | ' | ' |
Line of Credit Facility, Interest Rate Description | 'prime rate plus 0.25%, but not less than 3.75% | ' | ' | ' |
Customer Funds | 12.4 | 5 | ' | ' |
Secured Debt | 20.5 | 8.1 | ' | ' |
Repurchase Agreements, Maturities | 'Most of the repurchase agreements have variable rates indexed to the 90-day U.S. treasury rate | ' | ' | ' |
Repurchase Agreements Amount Outstanding | 8.1 | 4.7 | ' | ' |
Average Rate On Repurchase Agreements Percentage | 0.21% | 0.45% | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 14.8 | 15.8 | ' | ' |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase, Total | $50 | ' | ' | ' |
Trust [Member] | ' | ' | ' | ' |
Other Borrowings Disclosure [Line Items] | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 3.09% | 3.16% | ' | ' |
Trust Two [Member] | ' | ' | ' | ' |
Other Borrowings Disclosure [Line Items] | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 1.58% | 1.65% | ' | ' |
Trust Three [Member] | ' | ' | ' | ' |
Other Borrowings Disclosure [Line Items] | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 1.87% | ' | ' | ' |
Debt Instrument, Interest Rate, Effective Percentage | 5.75% | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $1,178 | $1,413 | $1,363 |
State | -14 | 174 | -66 |
Total current | 1,164 | 1,587 | 1,297 |
Deferred: | ' | ' | ' |
Federal | -375 | 209 | -700 |
State | -43 | 18 | -93 |
Total deferred | -418 | 227 | -793 |
Income tax expense | $746 | $1,814 | $504 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Expenses Benefit Disclosure [Line Items] | ' | ' | ' |
Income tax from operations | $746 | $1,814 | $504 |
Stockholders' equity, recognition of tax benefit for stock options exercised | -29 | -1 | -12 |
Stockholders' equity, recognition of unrealized (losses)/gains on available-for-sale securities | -2,583 | -77 | 1,558 |
Income Tax Effects Allocated Directly to Equity | ($1,866) | $1,736 | $2,050 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Expenses Benefit Disclosure [Line Items] | ' | ' | ' |
Computed "expected" tax expense | $1,836 | $2,782 | $1,696 |
(Reduction) increase in income taxes resulting from: | ' | ' | ' |
Tax-exempt interest income, net | -861 | -906 | -890 |
Bank owned life insurance | -201 | -195 | -199 |
Reversal of unrecognized tax benefits, net | -207 | -132 | -182 |
State income taxes, net of federal benefit | 169 | 259 | 77 |
Investment tax credits | -26 | -35 | -43 |
Other, net | 36 | 41 | 45 |
Income tax expense | $746 | $1,814 | $504 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Federal alternative minimum tax credit and low income housing credit carry forwards | $1,955 | $1,929 |
Loans, including allowance for loan losses | 2,292 | 1,793 |
Unrealized loss on investment securities available-for-sale | 567 | 0 |
Net operating loss carry forwards | 533 | 500 |
State taxes | 450 | 421 |
Intangible assets | 324 | 0 |
Deferred compensation arrangements | 208 | 224 |
Valuation allowance on other real estate | 42 | 213 |
Investment impairments | 48 | 48 |
Other, net | 61 | 84 |
Total deferred tax assets | 6,480 | 5,212 |
Deferred tax liabilities: | ' | ' |
Unrealized gain on investment securities available-for-sale | 0 | 2,016 |
Premises and equipment, net of depreciation | 755 | 774 |
FHLB stock dividends | 504 | 482 |
Other borrowings | 329 | 0 |
Intangible assets | 0 | 86 |
Investments | 4 | 0 |
Total deferred tax liabilities | 1,592 | 3,358 |
Less valuation allowance | -533 | -500 |
Net deferred tax asset | $4,355 | $1,354 |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Line Items] | ' | ' |
Unrecognized tax benefits at beginning of year | $986 | $856 |
Gross increases to current year tax positions | 272 | 334 |
Gross decreases to prior year's tax positions | 0 | -5 |
Lapse of statute of limitations | -314 | -199 |
Unrecognized tax benefits at end of year | $944 | $986 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Expenses Benefit Disclosure [Line Items] | ' | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | ' | ' |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $1,955,000 | $1,929,000 | ' |
Tax Credit Carryforward, Amount | 345,000 | ' | ' |
Tax Credit Carryforward Expiration Period | 'expire in varying amounts between 2026 and 2032 | ' | ' |
Unrecognized Tax Benefits Resulting in Net Operating Loss Carryforward | 11,000,000 | ' | ' |
Operating Loss Carry forwards Expiration Period | 'expire between 2012 and 2024 | ' | ' |
Cumulative Effect on Retained Earnings, Tax | 6,300,000 | 6,300,000 | ' |
Unrecognized Tax Benefits, Income Tax Penalties Expense | 314,000 | 199,000 | ' |
Unrecognized Tax Benefits, Beginning Balance | 944,000 | 986,000 | 856,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 623,000 | 651,000 | ' |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 192,000 | 201,000 | ' |
Income Tax Examination, Penalties and Interest Expense, Total | 9,000 | 23,000 | 71,000 |
Reduction In Unrecognized Tax Benefits | $46,000 | ' | ' |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details Textual) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2006 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Benefit Plans [Member] | Employee Benefit Plans [Member] | Employee Benefit Plans [Member] | Employee Benefit Plans [Member] | ||||
Employee Benefit Plans [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees Gross Pay | 100.00% | 6.00% | ' | ' | ' | ' | ' |
Defined Benefit Plan, Contributions by Employer | $369,000 | $355,000 | $350,000 | ' | ' | ' | ' |
Deferred Compensation Liability, Current, Total | 284,000 | 297,000 | ' | ' | ' | ' | ' |
Deferred Compensation Plan Assets | 2,300,000 | ' | ' | ' | ' | ' | ' |
Deferred Compensation Arrangements Accrued Benefits | 994,000 | 980,000 | ' | ' | ' | ' | ' |
Cash Surrender Value of Life Insurance | 4,100,000 | 3,900,000 | ' | ' | ' | ' | ' |
Bank Owned Life Insurance Income | 561,000 | 540,000 | 594,000 | 2,500,000 | 7,500,000 | ' | ' |
Bank Owned Life Insurance | $17,342,000 | $16,701,000 | ' | ' | ' | $13,200,000 | $12,800,000 |
Stock_Compensation_Plan_Detail
Stock Compensation Plan (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | ' | ' | ' |
Dividend rate | 0.00% | 0.00% | 6.33% |
Volatility | 0.00% | 0.00% | 23.58% |
Risk-free interest rate | 0.00% | 0.00% | 2.15% |
Expected term | '0 years | '0 years | '5 years |
Fair value per option at grant date | $0 | $0 | $1.59 |
Stock_Compensation_Plan_Detail1
Stock Compensation Plan (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share Based Compensation Stock Options Activity [Line Items] | ' | ' | ' |
Outstanding - Shares | 487,331 | ' | ' |
Effect of 5% stock dividend - Shares | 20,328 | ' | ' |
Forfeited/expired - Shares | -11,849 | ' | ' |
Exercised - Shares | -69,062 | -554 | -5,228 |
Outstanding - Shares | 426,748 | 487,331 | ' |
Exercisable - Shares | 396,289 | ' | ' |
Vested and expected to vest - Shares | 406,114 | ' | ' |
Outstanding - Weighted average exercise price per share | $18.18 | ' | ' |
Effect of 5% stock dividend - Weighted average exercise price per share | $0 | ' | ' |
Forfeited/expired - Weighted average exercise price per share | $19.18 | ' | ' |
Exercised - Weighted average exercise price per share | $16.21 | ' | ' |
Outstanding - Weighted average exercise price per share | $17.23 | $18.18 | ' |
Exercisable - Weighted average exercise price per share | $17.48 | ' | ' |
Vested and expected to vest - Weighted average exercise price per share | $17.23 | ' | ' |
Outstanding - Weighted average remaining contractual term | '3 years 4 months 24 days | '4 years | ' |
Effect of 5% stock dividend - Weighted average remaining contractual term | '0 years | ' | ' |
Forfeited/expired - Weighted average remaining contractual term | '0 years | ' | ' |
Exercised - Weighted average remaining contractual term | '0 years | ' | ' |
Exercisable - Weighted average remaining contractual term | '3 years 1 month 6 days | ' | ' |
Vested and expected to vest - Weighted average remaining contractual term | '3 years 4 months 24 days | ' | ' |
Outstanding - Aggregate intrinsic value | $1,011 | $355 | ' |
Exercisable - Aggregate intrinsic value | 842 | ' | ' |
Vested and expected to vest - Aggregate intrinsic value | $961 | ' | ' |
Stock_Compensation_Plan_Detail2
Stock Compensation Plan (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Nonvested Share Activity [Line Items] | ' | ' |
Nonvested options | 30,459 | 49,374 |
Forfeited/expired - Shares | -1,517 | ' |
Vested - Shares | -18,205 | ' |
Effect of 5% stock dividend - Shares | 807 | ' |
Nonvested options - Weighted average exercise price per share | $14.04 | $14.94 |
Forfeited/expired - Weighted average exercise price per share | $14.74 | ' |
Vested - Weighted average exercise price per share | $15.27 | ' |
Stock_Compensation_Plan_Detail3
Stock Compensation Plan (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock Option Exercised Additional Information [Line Items] | ' | ' | ' |
Intrinsic value of options exercised (on exercise date) | $126 | $2 | $32 |
Cash received from options exercised | 1,244 | 5 | 57 |
Excess tax benefit realized from options exercised | $29 | $1 | $12 |
Stock_Compensation_Plan_Detail4
Stock Compensation Plan (Details 4) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Unrecognized Compensation Cost Nonvested Awards [Line Items] | ' |
2014 | $22 |
2015 | 8 |
Total | $30 |
Stock_Compensation_Plan_Detail5
Stock Compensation Plan (Details 5) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Unrecognized Compensation Cost Nonvested Restricted Shares [Line Items] | ' |
2014 | $35 |
2015 | 12 |
Total | $47 |
Stock_Compensation_Plan_Detail6
Stock Compensation Plan (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||
Apr. 20, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Share-based Compensation, Total | ' | $58,000 | $82,000 | $107,000 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | ' | 30,000 | 6,000 | 23,000 |
Percentage Of Stock Option Exercise Price | ' | 100.00% | ' | ' |
Share Based Compensation Arrangement By Share Based Compensation Award To Stock Option Acquire Shares Of Common Stock | 59,131 | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | ' | 30,000 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | ' | $47,000 | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures, Total | 8,600 | ' | ' | 8,600 |
Restricted Common Stock Price Per Share | ' | ' | ' | $16.25 |
Effect Of Stock Dividend Percentage | ' | 5.00% | ' | ' |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments and Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investment securities: | ' | ' | ' |
Available-for-sale | $300,246,000 | $213,300,000 | ' |
Loans, net | 414,016,000 | 315,914,000 | 314,574,000 |
Loans held for sale, net | 7,864,000 | 7,163,000 | ' |
Derivative financial instruments | 265,000 | 334,000 | ' |
Financial liabilities: | ' | ' | ' |
Non-maturity deposits | 687,486,000 | 482,500,000 | ' |
FHLB borrowings | 35,689,000 | 38,426,000 | ' |
Other borrowings | 33,055,000 | 21,541,000 | ' |
Derivative financial instruments | 187,000 | 28,000 | ' |
Carrying Amount, Fair Value Disclosure [Member] | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and cash equivalents | 29,735,000 | 14,920,000 | ' |
Investment securities: | ' | ' | ' |
Available-for-sale | 300,246,000 | 213,300,000 | ' |
Other securities | 5,271,000 | 5,238,000 | ' |
Loans, net | 414,016,000 | 315,914,000 | ' |
Loans held for sale, net | 7,864,000 | 7,163,000 | ' |
Mortgage servicing rights | 2,377,000 | 1,679,000 | ' |
Derivative financial instruments | 265,000 | 334,000 | ' |
Accrued interest receivable | 2,581,000 | 2,589,000 | ' |
Financial liabilities: | ' | ' | ' |
Non-maturity deposits | 501,291,000 | 311,565,000 | ' |
Time deposits | 186,195,000 | 170,935,000 | ' |
FHLB borrowings | 35,689,000 | 38,426,000 | ' |
Other borrowings | 33,055,000 | 21,541,000 | ' |
Derivative financial instruments | 187,000 | 28,000 | ' |
Accrued interest payable | 335,000 | 410,000 | ' |
Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and cash equivalents | 29,735,000 | 14,920,000 | ' |
Investment securities: | ' | ' | ' |
Available-for-sale | 300,246,000 | 213,300,000 | ' |
Other securities | 5,271,000 | 5,238,000 | ' |
Loans, net | 420,475,000 | 317,335,000 | ' |
Loans held for sale, net | 7,864,000 | 7,179,000 | ' |
Mortgage servicing rights | 3,491,000 | 1,859,000 | ' |
Derivative financial instruments | 265,000 | 334,000 | ' |
Accrued interest receivable | 2,581,000 | 2,589,000 | ' |
Financial liabilities: | ' | ' | ' |
Non-maturity deposits | 501,291,000 | 311,565,000 | ' |
Time deposits | 186,222,000 | 171,961,000 | ' |
FHLB borrowings | 38,087,000 | 42,904,000 | ' |
Other borrowings | 29,351,000 | 19,273,000 | ' |
Derivative financial instruments | 187,000 | 28,000 | ' |
Accrued interest payable | $335,000 | $410,000 | ' |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments and Fair Value Measurements (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Estimated fair value | $300,246 | $213,300 |
Derivative financial instruments | 265 | 334 |
Liabilities: | ' | ' |
Derivative financial instruments | 187 | 28 |
Agency Securities [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 19,643 | 8,848 |
Nontaxable Municipal Bonds [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 91,793 | 77,286 |
Taxable Municipal Bonds [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 52,472 | 38,142 |
Collateralized Mortgage Backed Securities [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 125,593 | 81,848 |
Certificates of Deposit [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 9,142 | 6,274 |
Common Stock [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 1,103 | 902 |
Us Treasury Securities [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 500 | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Derivative financial instruments | 0 | 0 |
Liabilities: | ' | ' |
Derivative financial instruments | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Agency Securities [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Nontaxable Municipal Bonds [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Taxable Municipal Bonds [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Backed Securities [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Common Stock [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 1,103 | 902 |
Fair Value, Inputs, Level 1 [Member] | Us Treasury Securities [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 500 | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Derivative financial instruments | 265 | 334 |
Liabilities: | ' | ' |
Derivative financial instruments | 187 | 28 |
Fair Value, Inputs, Level 2 [Member] | Agency Securities [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 19,643 | 8,848 |
Fair Value, Inputs, Level 2 [Member] | Nontaxable Municipal Bonds [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 91,793 | 77,286 |
Fair Value, Inputs, Level 2 [Member] | Taxable Municipal Bonds [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 52,472 | 38,142 |
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 125,593 | 81,848 |
Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 9,142 | 6,274 |
Fair Value, Inputs, Level 2 [Member] | Common Stock [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Us Treasury Securities [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 0 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Derivative financial instruments | 0 | 0 |
Liabilities: | ' | ' |
Derivative financial instruments | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Agency Securities [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Nontaxable Municipal Bonds [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Taxable Municipal Bonds [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Backed Securities [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Common Stock [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Us Treasury Securities [Member] | ' | ' |
Assets: | ' | ' |
Estimated fair value | $0 | ' |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments and Fair Value Measurements (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ' | ' |
Impaired loans | $15,805 | $13,693 |
Loans held for sale, net | 7,864 | 7,179 |
Mortgage servicing rights | 3,491 | 1,859 |
Real estate owned, net | 400 | 2,444 |
Total gains and losses on Impaired loans | -564 | -758 |
Total gains and losses on Loans held for sale, net | 0 | 0 |
Total gains and losses on Mortgage servicing rights | 212 | -212 |
Total gains and losses on Real estate owned, net | -135 | -175 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Assets: | ' | ' |
Impaired loans | 0 | 0 |
Loans held for sale, net | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Real estate owned, net | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Assets: | ' | ' |
Impaired loans | 0 | 0 |
Loans held for sale, net | 7,864 | 7,179 |
Mortgage servicing rights | 0 | 0 |
Real estate owned, net | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Assets: | ' | ' |
Impaired loans | 15,805 | 13,693 |
Loans held for sale, net | 0 | 0 |
Mortgage servicing rights | 3,491 | 1,859 |
Real estate owned, net | $400 | $2,444 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments and Fair Value Measurements (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value of Financial Instruments And Fair Value Measurements [Line Items] | ' | ' |
Impaired Financing Receivable, Related Allowance | $951,000 | $901,000 |
Impaired Loans Carrying Value | $16,800,000 | $14,600,000 |
Regulatory_Capital_Requirement2
Regulatory Capital Requirements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Regulatory Capital Requirements [Line Items] | ' | ' |
Leverage - For capital adequacy purposes Ratio | 4.00% | 4.00% |
Tier 1 Capital - For capital adequacy purposes Ratio | 8.00% | 8.00% |
Companys Regulatory Capital Requirements [Member] | ' | ' |
Regulatory Capital Requirements [Line Items] | ' | ' |
Leverage - Actual Amount | 58,605 | 61,839 |
Tier 1 Capital - Actual Amount | 58,605 | 61,839 |
Total Risk Based Capital - Actual Amount | 69,888 | 67,273 |
Leverage - Actual Ratio | 7.89% | 10.09% |
Tier 1 Capital - Actual Ratio | 11.61% | 16.39% |
Total Risk Based Capital - Actual Ratio | 13.85% | 17.83% |
Leverage - For capital adequacy purposes Amount | 29,710 | 24,504 |
Tier 1 Capital - For capital adequacy purposes Amount | 20,189 | 15,092 |
Total Risk Based Capital - For capital adequacy purposes Amount | 40,378 | 30,184 |
Leverage - For capital adequacy purposes Ratio | 4.00% | 4.00% |
Tier 1 Capital - For capital adequacy purposes Ratio | 4.00% | 4.00% |
Total Risk Based Capital - For capital adequacy purposes Ratio | 8.00% | 8.00% |
Leverage - To be well-capitalized under prompt corrective action provisions Amount | 37,137 | 30,631 |
Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Amount | 30,283 | 22,638 |
Total Risk Based Capital - To be well-capitalized under prompt corrective action provisions Amount | 50,472 | 37,731 |
Leverage - To be well-capitalized under prompt corrective action provisions Ratio | 4.00% | 5.00% |
Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Ratio | 4.00% | 6.00% |
Total Risk Based Capital - To be well-capitalized under prompt corrective action provisions Ratio | 8.00% | 10.00% |
Regulatory_Capital_Requirement3
Regulatory Capital Requirements (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Regulatory Capital Requirements [Line Items] | ' | ' |
Tier 1 Capital - For capital adequacy purposes Ratio | 4.00% | 4.00% |
Banks Regulatory Capital Requirements [Member] | ' | ' |
Regulatory Capital Requirements [Line Items] | ' | ' |
Leverage - Actual Amount | 62,553 | 60,463 |
Tier 1 Capital - Actual Amount | 62,553 | 60,463 |
Total Risk Based Capital - Actual Amount | 68,243 | 65,124 |
Leverage - Actual Ratio | 8.46% | 9.90% |
Tier 1 Capital - Actual Ratio | 12.43% | 16.09% |
Total Risk Based Capital - Actual Ratio | 13.56% | 17.33% |
Leverage - For capital adequacy purposes Amount | 29,565 | 24,433 |
Tier 1 Capital - For capital adequacy purposes Amount | 20,133 | 15,029 |
Total Risk Based Capital - For capital adequacy purposes Amount | 40,267 | 30,057 |
Leverage - For capital adequacy purposes Ratio | 4.00% | 4.00% |
Tier 1 Capital - For capital adequacy purposes Ratio | 4.00% | 4.00% |
Total Risk Based Capital - For capital adequacy purposes Ratio | 8.00% | 8.00% |
Leverage - To be well-capitalized under prompt corrective action provisions Amount | 36,956 | 30,541 |
Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Amount | 30,200 | 22,543 |
Total Risk Based Capital - To be well-capitalized under prompt corrective action provisions Amount | 50,333 | 37,571 |
Leverage - To be well-capitalized under prompt corrective action provisions Ratio | 5.00% | 5.00% |
Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Ratio | 6.00% | 6.00% |
Total Risk Based Capital - To be well-capitalized under prompt corrective action provisions Ratio | 10.00% | 10.00% |
Regulatory_Capital_Requirement4
Regulatory Capital Requirements (Details Textual) | Dec. 31, 2013 | Dec. 31, 2012 |
Regulatory Capital Requirements [Line Items] | ' | ' |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Parent_Company_Condensed_Finan2
Parent Company Condensed Financial Statements (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $29,735 | $14,920 | $17,501 | ' |
Total assets | 828,755 | 614,067 | ' | ' |
Liabilities and stockholders' equity: | ' | ' | ' | ' |
Other borrowings | 33,055 | 21,541 | ' | ' |
Stockholders' equity | 62,692 | 63,333 | 59,120 | 53,817 |
Total liabilities and stockholders' equity | 828,755 | 614,067 | ' | ' |
Condensed Statements of Earnings | ' | ' | ' | ' |
Other non-interest income | 610 | 529 | 646 | ' |
Gain on sale of investment securities | 0 | 486 | 186 | ' |
Interest expense | 3,081 | 3,910 | 4,659 | ' |
Earnings before income taxes | 5,401 | 8,181 | 4,988 | ' |
Income tax benefit | 746 | 1,814 | 504 | ' |
Net earnings | 4,655 | 6,367 | 4,484 | ' |
Cash flows from operating activities: | ' | ' | ' | ' |
Net earnings | 4,655 | 6,367 | 4,484 | ' |
Gain on sale of investment securities | 0 | 423 | 114 | ' |
Net cash provided by operating activities | 12,098 | 12,385 | 13,070 | ' |
Cash flows from investing activities: | ' | ' | ' | ' |
Purchase of investment securities | 89,418 | 79,787 | 87,003 | ' |
Net cash provided by investing activities | -16,598 | 10,383 | -32,475 | ' |
Cash flows from financing activities: | ' | ' | ' | ' |
Proceeds from other borrowings | 0 | 2,600 | 6,118 | ' |
Repayments on other borrowings | -130 | -8,493 | -4,685 | ' |
Payment of dividends | -2,243 | -2,121 | -2,014 | ' |
Net cash used in financing activities | 19,315 | -25,349 | 27,171 | ' |
Net (decrease) increase in cash | 14,815 | -2,581 | 7,766 | ' |
Cash and cash equivalents at beginning of year | 14,920 | 17,501 | 9,735 | ' |
Cash and cash equivalents at end of year | 29,735 | 14,920 | 17,501 | ' |
Parent Company [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 649 | 855 | 15 | ' |
Investment securities | 1,366 | 1,194 | ' | ' |
Investment in Bank | 80,975 | 77,121 | ' | ' |
Other | 504 | 781 | ' | ' |
Total assets | 83,494 | 79,951 | ' | ' |
Liabilities and stockholders' equity: | ' | ' | ' | ' |
Other borrowings | 20,684 | 16,496 | ' | ' |
Other | 118 | 122 | ' | ' |
Stockholders' equity | 62,692 | 63,333 | ' | ' |
Total liabilities and stockholders' equity | 83,494 | 79,951 | ' | ' |
Condensed Statements of Earnings | ' | ' | ' | ' |
Dividends from Bank | 1,180 | 4,978 | 4,723 | ' |
Interest income | 27 | 27 | 21 | ' |
Other non-interest income | 7 | 7 | 7 | ' |
Gain on sale of investment securities | 0 | 9 | 0 | ' |
Interest expense | -446 | -495 | -607 | ' |
Other expense, net | -309 | -262 | -341 | ' |
Earnings before equity in undistributed earnings of Bank | 459 | 4,264 | 3,803 | ' |
Increase in undistributed equity of Bank | 3,948 | 1,858 | 367 | ' |
Earnings before income taxes | 4,407 | 6,122 | 4,170 | ' |
Income tax benefit | -248 | -245 | -314 | ' |
Net earnings | 4,655 | 6,367 | 4,484 | ' |
Cash flows from operating activities: | ' | ' | ' | ' |
Net earnings | 4,655 | 6,367 | 4,484 | ' |
Increase in undistributed equity of Bank | -3,948 | -1,858 | -367 | ' |
Loss on impairment of investment securities | 0 | 0 | 72 | ' |
Gain on sale of investment securities | 0 | -9 | 0 | ' |
Other | 69 | 68 | -30 | ' |
Net cash provided by operating activities | 776 | 4,568 | 4,159 | ' |
Cash flows from investing activities: | ' | ' | ' | ' |
Purchase of investment securities | 0 | 0 | 0 | ' |
Proceeds from sales and maturities of investment securities | 17 | 28 | 0 | ' |
Net cash provided by investing activities | 17 | 28 | 0 | ' |
Cash flows from financing activities: | ' | ' | ' | ' |
Issuance of shares under stock option plan | 1,244 | 5 | 57 | ' |
Proceeds from other borrowings | 0 | 2,600 | 2,485 | ' |
Repayments on other borrowings | 0 | -4,240 | -4,685 | ' |
Payment of dividends | -2,243 | -2,121 | -2,014 | ' |
Net cash used in financing activities | -999 | -3,756 | -4,157 | ' |
Net (decrease) increase in cash | -206 | 840 | 2 | ' |
Cash and cash equivalents at beginning of year | 855 | 15 | 13 | ' |
Cash and cash equivalents at end of year | $649 | $855 | $15 | ' |
Parent_Company_Condensed_Finan3
Parent Company Condensed Financial Statements (Details Textual) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Parent Company Condensed Financial Statements [Line Items] | ' |
Dividends That Could Be Paid Without Regulatory Approvals | $6.20 |
Commitments_Contingencies_and_1
Commitments, Contingencies and Guarantees (Details Textual) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Commitments, Contingencies And Guarantees [Line Items] | ' |
Guarantor Obligations, Maximum Exposure, Undiscounted | $31.90 |
Deposit Liability, Current | $21.70 |