Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 07, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | LANDMARK BANCORP INC | |
Entity Central Index Key | 1,141,688 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 4,147,946 | |
Trading Symbol | LARK | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 13,042 | $ 16,584 |
Investment securities available-for-sale, at fair value | 398,102 | 387,983 |
Common stocks, at fair value | 7 | |
Bank stocks, at cost | 5,457 | 5,423 |
Loans, net of allowance for loans losses of $5,644 at March 31, 2018 and $5,459 at December 31, 2017 | 436,179 | 433,743 |
Loans held for sale, at fair value | 6,287 | 6,535 |
Premises and equipment, net | 21,051 | 20,824 |
Bank owned life insurance | 23,857 | 23,698 |
Goodwill | 17,532 | 17,532 |
Other intangible assets, net | 3,504 | 3,659 |
Real estate owned, net | 416 | 436 |
Accrued interest and other assets | 13,560 | 13,037 |
Total assets | 938,994 | 929,454 |
Deposits: | ||
Non-interest-bearing demand | 170,108 | 160,496 |
Money market and checking | 374,633 | 388,311 |
Savings | 97,108 | 93,474 |
Time | 127,712 | 123,277 |
Total deposits | 769,561 | 765,558 |
Federal Home Loan Bank borrowings | 39,747 | 31,600 |
Subordinated debentures | 21,534 | 21,484 |
Other borrowings | 12,743 | 13,509 |
Accrued interest, taxes, and other liabilities | 10,961 | 9,681 |
Total liabilities | 854,546 | 841,832 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value per share, 200,000 shares authorized; none issued | ||
Common stock, $0.01 par value per share, 7,500,000 shares authorized; 4,118,083 and 4,081,659 shares issued at March 31, 2018 and December 31, 2017, respectively | 41 | 41 |
Additional paid-in capital | 58,160 | 57,772 |
Retained earnings | 31,499 | 30,214 |
Accumulated other comprehensive loss | (5,252) | (405) |
Total stockholders' equity | 84,448 | 87,622 |
Total liabilities and stockholders' equity | $ 938,994 | $ 929,454 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for loans losses | $ 5,644 | $ 5,459 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 200,000 | 200,000 |
Preferred stock, shares issued | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 7,500,000 | 7,500,000 |
Common stock, shares issued | 4,118,083 | 4,081,659 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Loans: | |||
Taxable | $ 5,350 | $ 5,019 | |
Tax-exempt | 29 | 35 | |
Investment securities: | |||
Taxable | 1,197 | 1,192 | |
Tax-exempt | 1,025 | 942 | |
Total interest income | 7,601 | 7,188 | |
Interest expense: | |||
Deposits | 541 | 338 | |
Borrowings | 466 | 482 | |
Total interest expense | 1,007 | 820 | |
Net interest income | 6,594 | 6,368 | |
Provision for loan losses | 200 | 50 | |
Net interest income after provision for loan losses | 6,394 | 6,318 | |
Non-interest income: | |||
Fees and service charges | 1,756 | 1,715 | |
Gains on sales of loans, net | [1] | 1,161 | 1,389 |
Bank owned life insurance | [1] | 159 | 117 |
Gains on sales of investment securities, net | 35 | 147 | |
Other | 290 | 273 | |
Total non-interest income | 3,401 | 3,641 | |
Non-interest expense: | |||
Compensation and benefits | 3,789 | 3,757 | |
Occupancy and equipment | 1,078 | 1,024 | |
Data processing | 365 | 330 | |
Amortization of intangibles | 277 | 298 | |
Professional fees | 388 | 290 | |
Advertising | 167 | 166 | |
Federal deposit insurance premiums | 72 | 72 | |
Foreclosure and real estate owned expense | 13 | 52 | |
Other | 1,291 | 1,072 | |
Total non-interest expense | 7,440 | 7,061 | |
Earnings before income taxes | 2,355 | 2,898 | |
Income tax expense | 256 | 693 | |
Net earnings | $ 2,099 | $ 2,205 | |
Earnings per share: | |||
Basic (1) | [2] | $ 0.51 | $ 0.54 |
Diluted (1) | [2] | 0.51 | 0.54 |
Dividends per share (1) | [2] | $ 0.20 | $ 0.19 |
[1] | Not within the scope of ASC 606. | ||
[2] | Per share amounts for the period ended March 31, 2017 have been adjusted to give effect to the 5% stock dividend paid during December 2017. |
Consolidated Statements of Ear5
Consolidated Statements of Earnings (Unaudited) (Parenthetical) | 3 Months Ended |
Mar. 31, 2017 | |
Income Statement [Abstract] | |
Stock dividend, percentage | 5.00% |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 2,099 | $ 2,205 |
Net unrealized holding (losses) gains on available-for-sale securities | (6,376) | 522 |
Less reclassification adjustment for net gains included in earnings | (35) | (147) |
Net unrealized (losses) gains | (6,411) | 375 |
Income tax effect on net gains included in earnings | 9 | 54 |
Income tax effect on net unrealized holding gains (losses) | 1,562 | (200) |
Other comprehensive (loss) income | (4,840) | 229 |
Total comprehensive (loss) income | $ (2,741) | $ 2,434 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stocks [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | |
Balance at Dec. 31, 2016 | $ 38 | $ 51,968 | $ 34,293 | $ (1,348) | $ 84,951 | |
Net earnings | 2,205 | 2,205 | ||||
Other comprehensive income | 229 | 229 | ||||
Dividends paid | (774) | (774) | [1] | |||
Stock-based compensation | 35 | 35 | ||||
Exercise of stock options | 1 | 22 | 23 | |||
Balance at Mar. 31, 2017 | 39 | 52,025 | 35,724 | (1,119) | 86,669 | |
Balance at Dec. 31, 2017 | 41 | 57,772 | 30,214 | (405) | 87,622 | |
Net earnings | 2,099 | 2,099 | ||||
Other comprehensive income | (4,840) | (4,840) | ||||
Dividends paid | (821) | (821) | ||||
Stock-based compensation | 54 | 54 | ||||
Exercise of stock options | 334 | 334 | ||||
Adjustment of common stock | 7 | (7) | ||||
Balance at Mar. 31, 2018 | $ 41 | $ 58,160 | $ 31,499 | $ (5,252) | $ 84,448 | |
[1] | Dividends per share have been adjusted to give effect to the 5% stock dividends paid during December 2017, 2016 and 2015. |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividend, per share | $ 0.20 | $ 0.19 |
Excise of stock option, shares | 36,424 | 1,845 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Cash flows from operating activities: | |||
Net earnings | $ 2,099 | $ 2,205 | |
Adjustments to reconcile net earnings to net cash provided by (used by) operating activities: | |||
Provision for loan losses | 200 | 50 | |
Valuation allowance on real estate owned | 33 | ||
Amortization of investment security premiums, net | 485 | 468 | |
Amortization of purchase accounting adjustment on loans | (58) | (19) | |
Amortization of purchase accounting adjustment on subordinated debentures | 50 | 50 | |
Amortization of intangibles | 277 | 298 | |
Depreciation | 250 | 263 | |
Increase in cash surrender value of bank owned life insurance | [1] | (159) | (117) |
Stock-based compensation | 54 | 35 | |
Deferred income taxes | 105 | 60 | |
Net gains on sales of investment securities | (35) | (147) | |
Net losses on sales of foreclosed assets | 1 | 15 | |
Net gains on sales of loans | [1] | (1,161) | (1,389) |
Proceeds from sales of loans | 31,886 | 31,153 | |
Origination of loans held for sale | (30,477) | (32,835) | |
Changes in assets and liabilities: | |||
Accrued interest and other assets | 838 | (520) | |
Accrued expenses, taxes, and other liabilities | (1,232) | (99) | |
Net cash provided by (used in) operating activities | 3,123 | (496) | |
Cash flows from investing activities: | |||
Net (increase) decrease in loans | (2,596) | 2,452 | |
Maturities and prepayments of investment securities | 12,682 | 11,069 | |
Purchases of investment securities | (29,692) | (30,726) | |
Proceeds from sales of investment securities | 2,535 | 11,797 | |
Redemption of bank stocks | 3,666 | 1,802 | |
Purchase of bank stocks | (3,700) | (1,826) | |
Proceeds from sales of foreclosed assets | 20 | 233 | |
Purchases of premises and equipment, net | (477) | (12) | |
Net cash used in investing activities | (17,562) | (5,211) | |
Cash flows from financing activities: | |||
Net increase in deposits | 4,003 | 11,166 | |
Federal Home Loan Bank advance borrowings | 233,570 | 148,857 | |
Federal Home Loan Bank advance repayments | (225,423) | (154,507) | |
Proceeds from other borrowings | 1,008 | ||
Repayments on other borrowings | (766) | ||
Proceeds from exercise of stock options | 334 | 23 | |
Payment of dividends | (821) | (774) | |
Net cash provided by financing activities | 10,897 | 5,773 | |
Net (decrease) increase in cash and cash equivalents | (3,542) | 66 | |
Cash and cash equivalents at beginning of period | 16,584 | 19,996 | |
Cash and cash equivalents at end of period | 13,042 | 20,062 | |
Supplemental disclosure of cash flow information: | |||
Cash payments for income taxes | |||
Cash paid for interest | 973 | 786 | |
Supplemental schedule of noncash investing and financing activities: | |||
Transfer of loans to real estate owned | 5 | ||
Investment securities purchases not yet settled | $ (2,512) | $ (3,443) | |
[1] | Not within the scope of ASC 606. |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Statements | 1. Interim Financial Statements The unaudited consolidated financial statements of Landmark Bancorp, Inc. (the “Company”) and its wholly owned subsidiaries, Landmark National Bank (the “Bank”) and Landmark Risk Management Inc., have been prepared in accordance with the instructions to Form 10-Q. Accordingly, they do not include all the information and footnotes required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and should be read in conjunction with the Company’s most recent Annual Report on Form 10-K, containing the latest audited consolidated financial statements and notes thereto. The consolidated financial statements in this report have not been audited by an independent registered public accounting firm, but in the opinion of management, all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of financial statements have been reflected herein. The results of the three month interim period ended March 31, 2018 are not necessarily indicative of the results expected for the year ending December 31, 2018 or any other future time period. The Company has evaluated subsequent events for recognition and disclosure up to the date the financial statements were issued. On January 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, “ASC 606”), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of non-financial assets, such as real estate owned. The majority of the Company’s revenues come from interest income and other sources, including loans, leases, securities and derivatives that are outside the scope of ASC 606. Services within the scope of ASC 606 include deposit service charges on deposits, interchange income, and the sale of real estate owned. Refer to footnote 7 to the financial statements, Revenue from Contracts with Customers, for further discussion on the Company’s accounting policies for revenue sources within the scope of ASC 606. The Company adopted ASC 606 using the modified retrospective method applied to all contracts not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 while prior period amounts continue to be reported in accordance with legacy GAAP. The adoption of ASC 606 did not result in a change to the accounting for any of the in-scope revenue streams. As such, no cumulative effect adjustment was recorded. In January 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-01, Financial Instruments (Topic 825): Recognition and Measurement of Financial Assets and Liabilities. The main provisions of the update are to eliminate the available for sale classification of accounting for equity securities and to adjust the fair value disclosures for financial instruments carried at amortized costs such that the disclosed fair values represent an exit price as opposed to an entry price. The provisions of this update will require that equity securities be carried at fair market value on the balance sheet and any periodic changes in value will be adjustments to the income statement. A practical expedient is provided for equity securities without a readily determinable fair value, such that these securities can be carried at cost less any impairment. The provisions of this update became effective for interim and annual periods beginning after December 15, 2017. The Company adopted ASU 2016-01 effective January 1, 2018. Effective January 1, 2018, changes in the value of the Company’s common stock investments are adjustments to the income statement. Additionally, the disclosure of fair value of the loan portfolio is presented using an exit price method instead of the discounted cash method previously utilized. Management has concluded that the requirements of this update do not have a material impact to the Company’s financial position, results of operations or cash flows. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Payments (a consensus of Emerging Issues Task Force). This ASU attempts to clarify how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The purpose of this update is to reduce existing diversity in practice in eight areas addressed by the update. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. The Company adopted ASU 2016-15 effective January 1, 2018. The adoption of ASU 2016-15 did not result in any material changes to the Company’s consolidated financial statements and related disclosures. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 2. Investments A summary of investment securities available-for-sale is as follows: As of March 31, 2018 Gross Gross Amortized unrealized unrealized Estimated (Dollars in thousands) cost gains losses fair value U. S. treasury securities $ 1,999 $ - $ (38 ) $ 1,961 U. S. federal agency obligations 14,554 4 (113 ) 14,445 Municipal obligations, tax exempt 183,449 459 (3,442 ) 180,466 Municipal obligations, taxable 55,065 91 (615 ) 54,541 Agency mortgage-backed securities 141,006 8 (3,310 ) 137,704 Certificates of deposit 8,985 - - 8,985 Total available-for-sale $ 405,058 $ 562 $ (7,518 ) $ 398,102 As of December 31, 2017 Gross Gross Amortized unrealized unrealized Estimated (Dollars in thousands) cost gains losses fair value U. S. treasury securities $ 1,999 $ - $ (9 ) $ 1,990 U. S. federal agency obligations 16,572 5 (85 ) 16,492 Municipal obligations, tax exempt 183,846 1,972 (1,080 ) 184,738 Municipal obligations, taxable 57,783 409 (216 ) 57,976 Agency mortgage-backed securities 119,096 92 (1,633 ) 117,555 Certificates of deposit 9,224 - - 9,224 Common stocks - 8 - 8 Total available-for-sale $ 388,520 $ 2,486 $ (3,023 ) $ 387,983 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 March 31, 2018 and December 31, 2017. 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 time in a continuous unrealized loss position. As of March 31, 2018 (Dollars in thousands) 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. treasury securities 1 $ 1,961 $ (38 ) $ - $ - $ 1,961 $ (38 ) U.S. federal agency obligations 12 5,969 (46 ) 8,248 (67 ) 14,217 (113 ) Municipal obligations, tax exempt 317 95,894 (1,829 ) 30,798 (1,613 ) 126,692 (3,442 ) Municipal obligations, taxable 105 35,148 (445 ) 9,850 (170 ) 44,998 (615 ) Agency mortgage-backed securities 101 99,117 (1,730 ) 37,917 (1,580 ) 137,034 (3,310 ) Total 536 $ 238,089 $ (4,088 ) $ 86,813 $ (3,430 ) $ 324,902 $ (7,518 ) As of December 31, 2017 (Dollars in thousands) 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. treasury securities 1 $ 1,990 $ (9 ) $ - $ - $ 1,990 $ (9 ) U. S. federal agency obligations 14 7,989 (24 ) 8,272 (61 ) 16,261 $ (85 ) Municipal obligations, tax exempt 178 37,299 (273 ) 31,930 (807 ) 69,229 $ (1,080 ) Municipal obligations, taxable 73 18,792 (96 ) 9,744 (120 ) 28,536 $ (216 ) Agency mortgage-backed securities 79 68,630 (620 ) 39,844 (1,013 ) 108,474 $ (1,633 ) Total 345 $ 134,700 $ (1,022 ) $ 89,790 $ (2,001 ) $ 224,490 $ (3,023 ) The Company’s U.S. treasury portfolio consists of securities issued by the United States Department of the Treasury. The receipt of principal and interest on U.S. treasury securities is guaranteed by the full faith and credit of the U.S. government. Based on these factors, along with the Company’s intent to not sell the security and its belief that it was more likely than not that the Company will not be required to sell the security before recovery of its cost basis, the Company believed that the U.S. treasury security identified in the table above was temporarily impaired as of March 31, 2018 and December 31, 2017. 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 was more likely than not that the Company will not be required to sell the securities before recovery of their cost basis, the Company believed that the U.S. federal agency obligations identified in the tables above were temporarily impaired as of March 31, 2018 and December 31, 2017. The Company’s portfolio of municipal obligations consists of both tax-exempt and taxable general obligations securities issued by various municipalities. As of March 31, 2018, the Company did 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 believed that the municipal obligations identified in the tables above were temporarily impaired as of March 31, 2018 and December 31, 2017. The Company’s agency 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. The receipt of principal, at par, and interest on agency mortgage-backed securities is guaranteed by the respective government-sponsored agency guarantor, such that the Company believed that its agency mortgage-backed securities did 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 was more likely than not that the Company will not be required to sell the securities before recovery of their cost basis, the Company believed that the agency mortgage-backed securities identified in the tables above were temporarily impaired as of March 31, 2018 and December 31, 2017. The table below sets forth amortized cost and fair value of investment securities at March 31, 2018. The table includes scheduled principal payments and estimated prepayments, based on observable market inputs, for agency mortgage-backed securities. Actual maturities will differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. (Dollars in thousands) Amortized Estimated cost fair value Due in less than one year $ 28,290 $ 28,180 Due after one year but within five years 187,173 183,944 Due after five years but within ten years 102,653 100,613 Due after ten years 86,942 85,365 Total $ 405,058 $ 398,102 Sales proceeds and gross realized gains and losses on sales of available-for-sale securities were as follows for the periods indicated: (Dollars in thousands) Three months ended March 31, 2018 2017 Sales proceeds $ 2,535 $ 11,797 Realized gains $ 35 $ 171 Realized losses - (24 ) Net realized gains $ 35 $ 147 Securities with carrying values of $227.3 million and $232.5 million were pledged to secure public funds on deposit, repurchase agreements and as collateral for borrowings at March 31, 2018 and December 31, 2017, respectively. Except for U.S. federal agency obligations, no investment in a single issuer exceeded 10% of consolidated stockholders’ equity. Effective January 1, 2018, the Company changed the classification of its common stock investments from available-for-sale with changes in fair value excluded from earnings and reported as a separate component of stockholders’ equity, net of taxes to be carried at fair value with changes in fair value included in net earnings. At March 31, 2018, the Company owned two common stock investments with a fair value of $7,000. During the first quarter of 2018, the fair value declined by $1,000, which was included in other non-interest income. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | 3. Loans and Allowance for Loan Losses Loans consisted of the following as of the dates indicated below: March 31, December 31, (Dollars in thousands) 2018 2017 One-to-four family residential real estate $ 134,565 $ 136,215 Construction and land 24,372 19,356 Commercial real estate 123,194 120,624 Commercial 52,575 54,591 Agriculture 81,691 83,008 Municipal 3,305 3,396 Consumer 22,516 22,046 Total gross loans 442,218 439,236 Net deferred loan costs and loans in process (395 ) (34 ) Allowance for loan losses (5,644 ) (5,459 ) Loans, net $ 436,179 $ 433,743 The following tables provide information on the Company’s allowance for loan losses by loan class and allowance methodology: Three months ended March 31, 2018 (Dollars in thousands) One-to-four family residential real estate Construction and land Commercial real estate Commercial Agriculture Municipal Consumer Total Allowance for loan losses: Balance at January 1, 2018 $ 542 $ 181 $ 1,540 $ 1,226 $ 1,812 $ 8 $ 150 $ 5,459 Charge-offs - - - - - - (33 ) (33 ) Recoveries 1 - 1 1 - 2 13 18 Provision for loan losses (66 ) (60 ) 21 257 55 (3 ) (4 ) 200 Balance at March 31, 2018 $ 477 $ 121 $ 1,562 $ 1,484 $ 1,867 $ 7 $ 126 $ 5,644 Three months ended March 31, 2017 (Dollars in thousands) One-to-four family residential real estate Construction and land Commercial real estate Commercial Agriculture Municipal Consumer Total Allowance for loan losses: Balance at January 1, 2017 $ 504 $ 53 $ 1,777 $ 1,119 $ 1,684 $ 12 $ 195 $ 5,344 Charge-offs (19 ) - - - - - (107 ) (126 ) Recoveries 1 - - 8 1 - 49 59 Provision for loan losses 7 18 (37 ) (26 ) 46 (1 ) 43 50 Balance at March 31, 2017 $ 493 $ 71 $ 1,740 $ 1,101 $ 1,731 $ 11 $ 180 $ 5,327 As of March 31, 2018 (Dollars in thousands) One-to-four family residential real estate Construction and land Commercial real estate Commercial Agriculture Municipal Consumer Total Allowance for loan losses: Individually evaluated for loss $ 84 $ 23 $ 15 $ 685 $ 71 $ - $ 1 $ 879 Collectively evaluated for loss 393 98 1,547 799 1,796 7 125 4,765 Total $ 477 $ 121 $ 1,562 $ 1,484 $ 1,867 $ 7 $ 126 $ 5,644 Loan balances: Individually evaluated for loss $ 740 $ 1,780 $ 3,922 $ 2,024 $ 776 $ 126 $ 40 $ 9,408 Collectively evaluated for loss 133,825 22,592 119,272 50,551 80,915 3,179 22,476 432,810 Total $ 134,565 $ 24,372 $ 123,194 $ 52,575 $ 81,691 $ 3,305 $ 22,516 $ 442,218 As of December 31, 2017 (Dollars in thousands) One-to-four family residential real estate Construction and land Commercial real estate Commercial Agriculture Municipal Consumer Total Allowance for loan losses: Individually evaluated for loss $ 73 $ 102 $ 52 $ 391 $ 24 $ - $ - $ 642 Collectively evaluated for loss 469 79 1,488 835 1,788 8 150 4,817 Total $ 542 $ 181 $ 1,540 $ 1,226 $ 1,812 $ 8 $ 150 $ 5,459 Loan balances: Individually evaluated for loss $ 747 $ 2,031 $ 3,973 $ 2,002 $ 833 $ 140 $ 34 $ 9,760 Collectively evaluated for loss 135,468 17,325 116,651 52,589 82,175 3,256 22,012 429,476 Total $ 136,215 $ 19,356 $ 120,624 $ 54,591 $ 83,008 $ 3,396 $ 22,046 $ 439,236 The Company recorded net loan charge-offs of $15,000 during the first quarter of 2018 compared to net loan charge-offs of $67,000 during the first quarter of 2017. The Company’s impaired loans decreased from $9.8 million at December 31, 2017 to $9.4 million at March 31, 2018. 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 March 31, 2018 and December 31, 2017, was related to troubled debt restructurings (“TDR”) that are current and accruing interest, but still classified as impaired. Interest income recognized on a cash basis was immaterial during the three months ended March 31, 2018 and 2017. The following tables present information on impaired loans: (Dollars in thousands) As of March 31, 2018 Unpaid contractual principal Impaired loan balance Impaired loans without an allowance Impaired loans with an allowance Related allowance recorded Year-to-date average loan balance Year-to-date interest income recognized One-to-four family residential real estate $ 740 $ 740 $ 467 $ 273 $ 84 $ 746 $ 2 Construction and land 3,515 1,780 417 1,363 23 1,797 15.00 Commercial real estate 3,922 3,922 3,884 38 15 3,925 122.00 Commercial 2,024 2,024 7 2,017 685 2,041 - Agriculture 991 776 517 259 71 791 - Municipal 126 126 126 - - 138 - Consumer 40 40 33 7 1 40 - Total impaired loans $ 11,358 $ 9,408 $ 5,451 $ 3,957 $ 879 $ 9,478 $ 139 (Dollars in thousands) As of December 31, 2017 Unpaid contractual principal Impaired loan balance Impaired loans without an allowance Impaired loans with an allowance Related allowance recorded Year-to-date average loan balance Year-to-date interest income recognized One-to-four family residential real estate $ 747 $ 747 $ 503 $ 244 $ 73 $ 774 $ 8 Construction and land 3,766 2,031 430 1,601 102 2,033 65 Commercial real estate 3,973 3,973 3,888 85 52 3,989 490 Commercial 2,002 2,002 11 1,991 391 2,082 - Agriculture 1,048 833 545 288 24 912 1 Municipal 140 140 140 - - 192 5 Consumer 34 34 34 - - 35 - Total impaired loans $ 11,710 $ 9,760 $ 5,551 $ 4,209 $ 642 $ 10,017 $ 569 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 90 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 90 days or more delinquent and accruing interest at March 31, 2018 or December 31, 2017. The following tables present information on the Company’s past due and non-accrual loans by loan class: (Dollars in thousands) As of March 31, 2018 30-59 days delinquent and accruing 60-89 days delinquent and accruing 90 days or more delinquent and accruing Total past due loans accruing Non-accrual loans Total past due and non-accrual loans Total loans not past due One-to-four family residential real estate $ 314 $ - $ - $ 314 $ 549 $ 863 $ 133,702 Construction and land - - - - 581 581 23,791 Commercial real estate - - - - 1,794 1,794 121,400 Commercial 166 356 - 522 2,024 2,546 50,029 Agriculture 177 75 - 252 776 1,028 80,663 Municipal - - - - - - 3,305 Consumer 35 2 - 37 40 77 22,439 Total $ 692 $ 433 $ - $ 1,125 $ 5,764 $ 6,889 $ 435,329 Percent of gross loans 0.16 % 0.10 % 0.00 % 0.26 % 1.30 % 1.56 % 98.44 % (Dollars in thousands) As of December 31, 2017 30-59 days delinquent and accruing 60-89 days delinquent and accruing 90 days or more delinquent and accruing Total past due loans accruing Non-accrual loans Total past due and non-accrual loans Total loans not past due One-to-four family residential real estate $ 101 $ 313 $ - $ 414 $ 552 $ 966 $ 135,249 Construction and land - 4 - 4 779 783 18,573 Commercial real estate 22 209 - 231 1,841 2,072 118,552 Commercial - 397 - 397 2,002 2,399 52,192 Agriculture - - - - 833 833 82,175 Municipal - - - - - - 3,396 Consumer 105 204 - 309 34 343 21,703 Total $ 228 $ 1,127 $ - $ 1,355 $ 6,041 $ 7,396 $ 431,840 Percent of gross loans 0.05 % 0.26 % 0.00 % 0.31 % 1.38 % 1.68 % 98.32 % Under the original terms of the Company’s non-accrual loans, interest earned on such loans for the three months ended March 31, 2018 and 2017 would have increased interest income by $76,000 and $31,000, respectively. No interest income related to non-accrual loans was included in interest income for the three months ended March 31, 2018 and 2017. The Company also categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. Nonclassified loans generally include those loans that are expected to be repaid in accordance with contractual loan terms. Classified loans are those that are assigned a special mention, substandard or doubtful risk rating using the following definitions: Special Mention: Loans are currently protected by the current net worth and paying capacity of the obligor or of the collateral pledged but such protection is potentially weak. These loans constitute an undue and unwarranted credit risk, but not to the point of justifying a classification of substandard. The credit risk may be relatively minor, yet constitutes an unwarranted risk in light of the circumstances surrounding a specific asset. Substandard: Loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged. Loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The following table provides information on the Company’s risk categories by loan class: As of March 31, 2018 As of December 31, 2017 (Dollars in thousands) Nonclassified Classified Nonclassified Classified One-to-four family residential real estate $ 133,478 $ 1,087 $ 135,475 $ 740 Construction and land 23,791 581 18,577 779 Commercial real estate 117,401 5,793 114,736 5,888 Commercial 46,215 6,360 52,313 2,278 Agriculture 73,641 8,050 76,455 6,553 Municipal 3,305 - 3,396 - Consumer 22,476 40 22,006 40 Total $ 420,307 $ 21,911 $ 422,958 $ 16,278 At March 31, 2018, the Company had eleven loan relationships consisting of eighteen outstanding loans that were classified as TDRs. There were no loans classified as TDRs during the first three months of 2018. During the first three months of 2017, the Company classified an $11,000 commercial real estate loan as a TDR after extending the maturity of the loan and classified as a TDR a $15,000 agriculture loan extended to an existing loan relationship that was classified as a TDR in 2016. Since the loans were adequately secured, no charge-offs or impairments were recorded against the principal during the three months ended March 31, 2017. 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 modified as TDRs for which there was a payment default within 12 months of modification as of March 31, 2018 and 2017. At March 31, 2018, there was a commitment of $8,000 to lend additional funds on one construction and land loan classified as a TDR. The Company did not record any charge-offs against loans classified as TDRs in the first quarter of 2018 or 2017. A credit provision for loan losses of $33,000 and $13,000 related to TDRs was recorded in the three months ended March 31, 2018 and 2017, respectively. The Company had $94,000 and $127,000 allowance for loan losses recorded against loans classified as TDRs at March 31, 2018 and December 31, 2017, respectively. The following table presents information on loans that are classified as TDRs: (Dollars in thousands) As of March 31, 2018 As of December 31, 2017 Number of loans Non-accrual balance Accruing balance Number of loans Non-accrual balance Accruing balance One-to-four family residential real estate 2 $ - $ 191 2 $ - $ 194 Construction and land 4 571 1,199 4 575 1,252 Commercial real estate 2 - 2,128 3 45 2,133 Agriculture 8 444 - 9 471 - Municipal 2 - 126 2 - 140 Total troubled debt restructurings 18 $ 1,015 $ 3,644 20 $ 1,091 $ 3,719 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 4. Goodwill and Other Intangible Assets The Company tests goodwill for impairment annually or more frequently if circumstances warrant. The Company’s annual step one impairment test as of December 31, 2017 concluded that its goodwill was not impaired. The Company concluded there were no triggering events during the first three months of 2018 that required an interim goodwill impairment test. Lease intangible assets are amortized over the life of the lease. Core deposit intangible assets are amortized over the estimated useful life of ten years on an accelerated basis. Mortgage servicing rights are amortized over the estimated life of the mortgage loan serviced for others. A summary of the other intangible assets that continue to be subject to amortization is as follows: (Dollars in thousands) As of March 31, 2018 Gross carrying amount Accumulated amortization Net carrying amount Core deposit intangible assets $ 2,067 $ (1,435 ) $ 632 Lease intangible asset 350 (200 ) 150 Mortgage servicing rights 6,351 (3,629 ) 2,722 Total other intangible assets $ 8,768 $ (5,264 ) $ 3,504 (Dollars in thousands) As of December 31, 2017 Gross carrying amount Accumulated amortization Net carrying amount Core deposit intangible assets $ 2,067 $ (1,381 ) $ 686 Lease intangible asset 350 (188 ) 162 Mortgage servicing rights 6,285 (3,474 ) 2,811 Total other intangible assets $ 8,702 $ (5,043 ) $ 3,659 The following sets forth estimated amortization expense for core deposit and lease intangible assets for the remainder of 2018 and in successive years ending December 31: (Dollars in thousands) Amortization expense Remainder of 2018 $ 186 2019 214 2020 177 2021 121 2022 58 Thereafter 26 Total $ 782 Mortgage loans serviced for others are not reported as assets. The following table provides information on the principal balances of mortgage loans serviced for others: (Dollars in thousands) March 31, December 31, 2018 2017 FHLMC $ 520,375 $ 517,863 FHLB 9,587 9,782 Total $ 529,962 $ 527,645 Custodial escrow balances maintained in connection with serviced loans were $7.8 million and $4.4 million at March 31, 2018 and December 31, 2017, respectively. Gross service fee income related to such loans was $336,000 and $319,000 for the three months ended March 31, 2018 and 2017, respectively, and is included in fees and service charges in the consolidated statements of earnings. Activity for mortgage servicing rights is as follows: Three months ended (Dollars in thousands) March 31, 2018 2017 Mortgage servicing rights: Balance at beginning of period $ 2,811 $ 2,849 Additions 122 161 Amortization (211 ) (223 ) Balance at end of period $ 2,722 $ 2,787 The fair value of mortgage servicing rights was $6.1 million and $5.6 million at March 31, 2018 and December 31, 2017, respectively. Fair value at March 31, 2018 was determined using discount rates ranging from 9.00% to 11.00%; prepayment speeds ranging from 6.00% to 20.88%, depending on the stratification of the specific mortgage servicing right; and a weighted average default rate of 1.30%. Fair value at December 31, 2017 was determined using discount rates ranging from 9.50% to 9.59%, prepayment speeds ranging from 5.23% to 33.39%, depending on the stratification of the specific mortgage servicing right, and a weighted average default rate of 2.26%. The Company had a mortgage repurchase reserve of $235,000 at both March 31, 2018 and December 31, 2017, 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. The Company did not incur any losses charged against the reserve or make any provisions to the reserve during the first three months of 2018 and 2017. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings per share: | |
Earnings Per Share | 5. Earnings per Share Basic earnings per share have been computed based upon the weighted average number of common shares outstanding during each period. Diluted earnings per share include the effect of all potential common shares outstanding during each period. The diluted earnings per share computations for the three months ended March 31, 2018 and 2017 include all unexercised stock options because no stock options were anti-dilutive as of such dates. The shares used in the calculation of basic and diluted earnings per share are shown below: Three months ended (Dollars in thousands, except per share amounts) March 31, 2018 2017 Net earnings $ 2,099 $ 2,205 Weighted average common shares outstanding - basic (1) 4,107,812 4,063,289 Assumed exercise of stock options (1) 43,170 83,106 Weighted average common shares outstanding - diluted (1) 4,150,982 4,146,395 Net earnings per share (1): Basic $ 0.51 $ 0.54 Diluted $ 0.51 $ 0.54 (1) Share and per share values for the period ended March 31, 2017 have been adjusted to give effect to the 5% stock dividend paid during December 2017. |
Repurchase Agreements
Repurchase Agreements | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Repurchase Agreements | 6. Repurchase Agreements The Company has overnight repurchase agreements with certain deposit customers whereby the Company uses investment securities as collateral for non-insured funds. These balances are accounted for as collateralized financing and included in other borrowings on the balance sheet. The following is a summary of the balances and collateral of the Company’s repurchase agreements: As of March 31, 2018 (dollars in thousands) Overnight and Greater Continuous Up to 30 days 30-90 days than 90 days Total Repurchase agreements: U.S. federal treasury obligations $ 424 $ - $ - $ - $ 424 U.S. federal agency obligations 4,618 - - - 4,618 Agency mortgage-backed securities 7,701 - - - 7,701 Total $ 12,743 $ - $ - $ - $ 12,743 As of December 31, 2017 Overnight and Greater Continuous Up to 30 days 30-90 days than 90 days Total Repurchase agreements: U.S. federal agency obligations $ 5,147 $ - $ - $ - $ 5,147 Agency mortgage-backed securities 8,362 - - - 8,362 Total $ 13,509 $ - $ - $ - $ 13,509 Repurchase agreements are comprised of non-insured customer funds, totaling $12.7 million at March 31, 2018 and $13.5 million at December 31, 2017, which were secured by $16.8 million and $16.8 million of the Company’s investment portfolio at the same dates, respectively. The investment securities are held by a third party financial institution in the customer’s custodial account. The Company is required to maintain adequate collateral for each repurchase agreement. Changes in the fair value of the investment securities impact the amount of collateral required. If the Company were to default, the investment securities would be used to settle the repurchase agreement with the deposit customer. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 7. Revenue from Contracts with Customers All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. Items outside the scope of ASC 606 are noted as such. Three months ended (Dollars in thousands) March 31, 2018 2017 Non-interest income: Service charges on deposits Overdraft fees $ 797 $ 854 Other 138 145 Interchange income 442 361 Loan servicing fees (1) 336 319 Office lease income (1) 152 150 Gains on sales of loans (1) 1,161 1,389 Bank owned life insurance income (1) 159 117 Gains on sales of investment securities (1) 35 147 Gains (losses) on sales of real estate owned 1 (15 ) Other 180 174 Total non-interest income $ 3,401 $ 3,641 (1) Not within the scope of ASC 606. A description of the Company’s revenue streams under ASC 606 follows: Service Charges on Deposit Accounts The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as ATM usage fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period during which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Interchange Income The Company earns interchange fees from debit cardholder transactions conducted through the interchange payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Gains (Losses) on Sales of Real Estate Owned The Company records a gain or loss from the sale of real estate owned when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of real estate owned to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the real estate owned asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain (loss) on sale if a significant financing component is present. There were no sales of real estate owned that were financed by the Company during the first three months of 2018 or 2017. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Fair Value Measurements | 8. Fair Value of Financial Instruments and Fair Value Measurements Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Fair value estimates of the Company’s financial instruments as of March 31, 2018 and December 31, 2017, including methods and assumptions utilized, are set forth below: (Dollars in thousands) As of March 31, 2018 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 13,042 $ 13,042 $ - $ - $ 13,042 Investment securities available-for-sale 398,102 1,961 396,141 - 398,102 Common stocks 7 7 - - 7 Bank stocks, at cost 5,457 n/a n/a n/a n/a Loans, net 436,179 - - 440,680 440,680 Loans held for sale 6,287 - 6,287 - 6,287 Derivative financial instruments 794 - 794 - 794 Accrued interest receivable 4,233 10 2,074 2,149 4,233 Financial liabilities: Non-maturity deposits $ (641,849 ) $ (641,849 ) $ - $ - (641,849 ) Time deposits (127,712 ) - (125,388 ) - (125,388 ) FHLB borrowings (39,747 ) - (39,777 ) - (39,777 ) Subordinated debentures (21,534 ) - (19,459 ) - (19,459 ) Other borrowings (12,743 ) - (12,743 ) - (12,743 ) Accrued interest payable (258 ) - (258 ) - (258 ) As of December 31, 2017 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 16,584 $ 16,584 $ - $ - $ 16,584 Investment securities available-for-sale 387,983 1,998 385,985 - 387,983 Bank stocks, at cost 5,423 n/a n/a n/a n/a Loans, net 433,743 - - 436,910 436,910 Loans held for sale 6,535 - 6,535 - 6,535 Derivative financial instruments 395 - 395 - 395 Accrued interest receivable 4,409 20 2,234 2,155 4,409 Financial liabilities: Non-maturity deposits $ (642,281 ) $ (642,281 ) $ - $ - (642,281 ) Time deposits (123,277 ) - (121,298 ) - (121,298 ) FHLB borrowings (31,600 ) - (31,706 ) - (31,706 ) Subordinated debentures (21,484 ) - (19,134 ) - (19,134 ) Other borrowings (13,509 ) - (13,509 ) - (13,509 ) Accrued interest payable (274 ) - (274 ) - (274 ) 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. treasury securities, U.S. federal agency obligations, municipal obligations, agency mortgage-backed securities and certificates of deposits. Quoted exchange prices are available for the Company’s U.S treasury securities, which are classified as Level 1. U.S. federal agency securities and agency mortgage-backed securities 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 obligations 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 common stock investments are valued based on quoted exchange prices and classified as Level 1. As of January 1, 2018, the common stocks were transferred out of the available-for-sale classification. It is not practical to determine the fair value of bank stocks due to restrictions placed on the transferability of FHLB and Federal Reserve Bank stock. Effective January 1, 2018, 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 appropriate market inputs to arrive at a discount rate that reflects exit pricing as prescribed in ASC Topic 820. The market inputs utilize market trading information in the calculation of loan fair values and is classified as Level 3. Prior to January 1, 2018, the fair value was 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 and was classified as Level 3. No adjustment was made to the interest rates for changes in credit risk of performing loans where there are no known credit concerns. The fair values of impaired loans were generally based on market prices for similar assets determined through independent appraisals or discounted values of independent appraisals and brokers’ opinions of value. The difference in methodologies may make the fair value of loans not comparable between current year and prior year periods. Mortgage loans originated and intended for sale in the secondary market are carried at fair value. The mortgage loan valuations are based on quoted secondary market prices for similar loans and are classified as Level 2. 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 checking 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, subordinated debentures, 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 sales of loans, net in the consolidated statements of earnings. 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 amount of these fees is not material. Transfers The Company did not transfer any assets or liabilities among levels during the three months ended March 31, 2018 or during the year ended December 31, 2017. Valuation Methods for Instruments Measured at Fair Value on a Recurring Basis The following tables represent the Company’s financial instruments that are measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017, allocated to the appropriate fair value hierarchy: (Dollars in thousands) As of March 31, 2018 Fair value hierarchy Total Level 1 Level 2 Level 3 Assets: Available-for-sale investment securities: U. S. treasury securities $ 1,961 $ 1,961 $ - $ - U. S. federal agency obligations 14,445 - 14,445 - Municipal obligations, tax exempt 180,466 - 180,466 - Municipal obligations, taxable 54,541 - 54,541 - Mortgage-backed securities 137,704 - 137,704 - Certificates of deposit 8,985 - 8,985 - Common stocks 7 7 - - Loans held for sale 6,287 - 6,287 - Derivative financial instruments 794 - 794 - As of December 31, 2017 Fair value hierarchy Total Level 1 Level 2 Level 3 Assets: Available-for-sale investment securities: U. S. treasury securities $ 1,990 $ 1,990 $ - $ - U. S. federal agency obligations 16,492 - 16,492 - Municipal obligations, tax exempt 184,738 - 184,738 - Municipal obligations, taxable 57,976 - 57,976 - Agency mortgage-backed securities 117,555 - 117,555 - Certificates of deposit 9,224 - 9,224 - Common stocks 8 8 - - Loans held for sale 6,535 - 6,535 - Derivative financial instruments 395 - 395 - 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. The aggregate fair value, contractual balance (including accrued interest), and gain on loans held for sale were as follows: As of As of (Dollars in thousands) March 31, 2018 December 31, 2017 Aggregate fair value $ 6,287 $ 6,535 Contractual balance 6,271 6,420 Gain $ 16 $ 115 The total amount of gains from changes in fair value of loans held for sale included in earnings were as follows: Three months ended March 31, (Dollars in thousands) 2018 2017 Interest income $ 48 $ 45 Change in fair value (99 ) 109 Total change in fair value $ (51 ) $ 154 Valuation Methods for Instruments Measured at Fair Value on a Nonrecurring Basis The Company does not value its loan portfolio at fair value. Collateral-dependent impaired loans are generally carried at the lower of cost or fair value of the collateral, less estimated selling costs. Collateral values are determined based on appraisals performed by qualified licensed appraisers hired by the Company and then further adjusted if warranted based on relevant facts and circumstances. The appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales and income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Impaired loans are reviewed and evaluated at least quarterly for additional impairment and adjusted accordingly, based on the same factors identified above. The carrying value of the Company’s impaired loans was $9.4 million and $9.8 million, with an allocated allowance of $879,000 and $642,000, at March 31, 2018 and December 31, 2017, respectively. 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. The appraisals may utilize a single valuation approach or a combination of approaches including the comparable sales and income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Real estate owned is reviewed and evaluated at least annually for additional impairment and adjusted accordingly, based on the same factors identified above. The following tables represent the Company’s financial instruments that are measured at fair value on a non-recurring basis as of March 31, 2018 and December 31, 2017 allocated to the appropriate fair value hierarchy: As of March 31, 2018 Total Fair value hierarchy (losses)/ (Dollars in thousands) Total Level 1 Level 2 Level 3 gains Assets: Impaired loans: One-to-four family residential real estate $ 189 $ - $ - $ 189 $ (11 ) Construction and land 1,340 - - 1,340 44 Commercial real estate 23 - - 23 1 Commercial 1,332 - - $ 1,332 (294 ) Agriculture 188 - - $ 188 (47 ) Consumer 6 - - $ 6 (1 ) As of December 31, 2017 Total Fair value hierarchy (losses)/ Total Level 1 Level 2 Level 3 gains Assets: Impaired loans: One-to-four family residential real estate $ 171 $ - $ - $ 171 $ (73 ) Construction and land 1,499 - - 1,499 (102 ) Commercial real estate 33 - - 33 12 Commercial 1,600 - - 1,600 (304 ) Agriculture 264 - - 264 65 Real estate owned: One-to-four family residential real estate 325 - - 325 (68 ) Commercial real estate 85 - - 85 (50 ) The following table presents quantitative information about Level 3 fair value measurements measured at fair value on a nonrecurring basis as of March 31, 2018 and December 31, 2017. (Dollars in thousands) Fair value Valuation technique Unobservable inputs Range As of March 31, 2018 Impaired loans: One-to-four family residential real estate $ 189 Sales comparison Adjustment to appraised value 7%-50 % Construction and land 1,340 Sales comparison Adjustment to appraised value 0%-35 % Commercial real estate 23 Sales comparison Adjustment to appraised value 0%-20 % Commercial 1,332 Sales comparison Adjustment to comparable sales 15%-50 % Agriculture 188 Sales comparison Adjustment to appraised value 0%-25 % Consumer 6 Sales comparison Adjustment to appraised value 0%-100 % As of December 31, 2017 Impaired loans: One-to-four family residential real estate $ 171 Sales comparison Adjustment to appraised value 16%-50 % Construction and land 1,499 Sales comparison Adjustment to appraised value 0%-25 % Commerical real estate 33 Sales comparison Adjustment to appraised value 0%-91 % Commercial 1,600 Sales comparison Adjustment to comparable sales 15%-50 % Agriculture 264 Sales comparison Adjustment to appraised value 0%-50 % Real estate owned: One-to-four family residential real estate 325 Sales comparison Adjustment to appraised value 10 % Commercial real estate 85 Sales comparison Adjustment to appraised value 10 % |
Regulatory Capital Requirements
Regulatory Capital Requirements | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Capital Requirements | 9. Regulatory Capital Requirements Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believed that as of March 31, 2018, the Company and the Bank met all capital adequacy requirements to which they were subject at that time. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The Company and the Bank are subject to the capital rules (the “Basel III Rules”) that implemented the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Basel III Rules are applicable to all U.S. banks that are subject to minimum capital requirements, as well as to bank and savings and loan holding companies other than “small bank holding companies” (generally, non-public bank holding companies with consolidated assets of less than $1.0 billion). The Basel III Rules require a common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, a Tier 1 capital to risk-weighted assets minimum ratio of 6.0%, a Total Capital to risk-weighted assets minimum ratio of 8.0%, and a Tier 1 leverage minimum ratio of 4.0%. A capital conservation buffer, comprised of common equity Tier 1 capital, is also established above the regulatory minimum capital requirements. This capital conservation buffer began on January 1, 2016 at 0.625% of risk-weighted assets, was 1.25% effective on January 1, 2017, was 1.875% effective on January 1, 2018 and will increase to 2.5% on January 1, 2019. As of March 31, 2018 and December 31, 2017, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action then in effect. There are no conditions or events since that notification that management believes have changed the institution’s category. The following is a comparison of the Company’s regulatory capital to minimum capital requirements at March 31, 2018 and December 31, 2017: For capital Actual adequacy purposes (Dollars in thousands) Amount Ratio Amount Ratio (1) As of March 31, 2018 Leverage $ 92,606 10.15 % $ 36,495 4.0 % Common Equity Tier 1 Capital 71,723 13.21 % 34,602 6.4 % Tier 1 Capital 92,606 17.06 % 42,743 7.9 % Total Risk Based Capital 98,390 18.13 % 53,599 9.9 % As of December 31, 2017 Leverage $ 88,605 9.80 % $ 36,180 4.0 % Common Equity Tier 1 Capital 68,269 12.83 % 30,590 5.8 % Tier 1 Capital 88,605 16.65 % 38,571 7.3 % Total Risk Based Capital 94,208 17.71 % 49,211 9.3 % (1) The required ratios for capital adequacy purposes include a capital conservation buffer of 1.875% for March 31, 2018 and 1.25% for December 31, 2017 The following is a comparison of the Bank’s regulatory capital to minimum capital requirements at March 31, 2018 and December 31, 2017: To be well-capitalized under prompt For capital corrective (Dollars in thousands) Actual adequacy purposes action provisions Amount Ratio Amount Ratio(1) Amount Ratio As of March 31, 2018 Leverage $ 91,084 10.01 % $ 36,401 4.0 % $ 45,502 5.0 % Common Equity Tier 1 Capital 91,084 16.71 % 34,755 6.4 % 35,437 6.5 % Tier 1 Capital 91,084 16.71 % 42,933 7.9 % 43,614 8.0 % Total Risk Based Capital 96,868 17.77 % 53,836 9.9 % 54,518 10.0 % As of December 31, 2017 Leverage $ 86,808 9.62 % $ 36,097 4.0 % $ 45,122 5.0 % Common Equity Tier 1 Capital 86,808 16.35 % 30,529 5.8 % 34,511 6.5 % Tier 1 Capital 86,808 16.35 % 38,493 7.3 % 42,475 8.0 % Total Risk Based Capital 92,407 17.40 % 49,112 9.3 % 53,094 10.0 % (1) The required ratios for capital adequacy purposes include a capital conservation buffer of 1.875% for March 31, 2018 and 1.25% for December 31, 2017. |
Impact of Recent Accounting Pro
Impact of Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of Recent Accounting Pronouncements | 10. Impact of Recent Accounting Pronouncements In February 2016, the FASB issued an update (ASU No. 2016-02, Leases) creating FASB Topic 842, Leases. The guidance is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requiring more disclosures related to leasing transactions. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. Management has concluded that based on the Company’s current operating leases, the adoption of ASU 2016-02 will not have a material impact on the Company’s consolidated financial statement and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), commonly referred to as “CECL.” The provisions of the update eliminate the probable initial recognition threshold under current GAAP which requires reserves to be based on an incurred loss methodology. Under CECL, reserves required for financial assets measured at amortized cost will reflect an organization’s estimate of all expected credit losses over the expected term of the financial asset and thereby require the use of reasonable and supportable forecasts to estimate future credit losses. Because CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held to maturity debt securities. Under the provisions of the update, credit losses recognized on available for sale debt securities will be presented as an allowance as opposed to a write-down. In addition, CECL will modify the accounting for purchased loans, with credit deterioration since origination, so that reserves are established at the date of acquisition for purchased loans. Under current GAAP a purchased loan’s contractual balance is adjusted to fair value through a credit discount and no reserve is recorded on the purchased loan upon acquisition. Since under CECL reserves will be established for purchased loans at the time of acquisition, the accounting for purchased loans is made more comparable to the accounting for originated loans. Finally, increased disclosure requirements under CECL oblige organizations to present the currently required credit quality disclosures disaggregated by the year of origination or vintage. FASB expects that the evaluation of underwriting standards and credit quality trends by financial statement users will be enhanced with the additional vintage disclosures. For public entities, the amendments of the update are effective beginning January 1, 2020. Management has initiated an implementation committee to assist in assessing data and system needs for the new standard. Management anticipates the effect will be an increase to the allowance for loan losses upon adoption. However, the size of the overall increase is uncertain at this time. In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. The amendments in this update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The provisions of this update become effective for interim and annual periods beginning after December 15, 2018. Management has concluded that based on the Company’s current portfolio of investment securities that the adoption of these amendments will result in a shorter amortization period for investment security premiums; however, the impact will not be material to interest income on investment securities. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments Schedule [Abstract] | |
Schedule of Available-for-sale Securities | A summary of investment securities available-for-sale is as follows: As of March 31, 2018 Gross Gross Amortized unrealized unrealized Estimated (Dollars in thousands) cost gains losses fair value U. S. treasury securities $ 1,999 $ - $ (38 ) $ 1,961 U. S. federal agency obligations 14,554 4 (113 ) 14,445 Municipal obligations, tax exempt 183,449 459 (3,442 ) 180,466 Municipal obligations, taxable 55,065 91 (615 ) 54,541 Agency mortgage-backed securities 141,006 8 (3,310 ) 137,704 Certificates of deposit 8,985 - - 8,985 Total available-for-sale $ 405,058 $ 562 $ (7,518 ) $ 398,102 As of December 31, 2017 Gross Gross Amortized unrealized unrealized Estimated (Dollars in thousands) cost gains losses fair value U. S. treasury securities $ 1,999 $ - $ (9 ) $ 1,990 U. S. federal agency obligations 16,572 5 (85 ) 16,492 Municipal obligations, tax exempt 183,846 1,972 (1,080 ) 184,738 Municipal obligations, taxable 57,783 409 (216 ) 57,976 Agency mortgage-backed securities 119,096 92 (1,633 ) 117,555 Certificates of deposit 9,224 - - 9,224 Common stocks - 8 - 8 Total available-for-sale $ 388,520 $ 2,486 $ (3,023 ) $ 387,983 |
Schedule of Available for Sale Securities Continuous Unrealized Loss Position Fair Value | Securities which were temporarily impaired are shown below, along with the length of time in a continuous unrealized loss position. As of March 31, 2018 (Dollars in thousands) 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. treasury securities 1 $ 1,961 $ (38 ) $ - $ - $ 1,961 $ (38 ) U.S. federal agency obligations 12 5,969 (46 ) 8,248 (67 ) 14,217 (113 ) Municipal obligations, tax exempt 317 95,894 (1,829 ) 30,798 (1,613 ) 126,692 (3,442 ) Municipal obligations, taxable 105 35,148 (445 ) 9,850 (170 ) 44,998 (615 ) Agency mortgage-backed securities 101 99,117 (1,730 ) 37,917 (1,580 ) 137,034 (3,310 ) Total 536 $ 238,089 $ (4,088 ) $ 86,813 $ (3,430 ) $ 324,902 $ (7,518 ) As of December 31, 2017 (Dollars in thousands) 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. treasury securities 1 $ 1,990 $ (9 ) $ - $ - $ 1,990 $ (9 ) U. S. federal agency obligations 14 7,989 (24 ) 8,272 (61 ) 16,261 $ (85 ) Municipal obligations, tax exempt 178 37,299 (273 ) 31,930 (807 ) 69,229 $ (1,080 ) Municipal obligations, taxable 73 18,792 (96 ) 9,744 (120 ) 28,536 $ (216 ) Agency mortgage-backed securities 79 68,630 (620 ) 39,844 (1,013 ) 108,474 $ (1,633 ) Total 345 $ 134,700 $ (1,022 ) $ 89,790 $ (2,001 ) $ 224,490 $ (3,023 ) |
Schedule of Investments Classified by Contractual Maturity Date | Actual maturities will differ from contractual maturities because borrowers have the right to prepay obligations with or without prepayment penalties. (Dollars in thousands) Amortized Estimated cost fair value Due in less than one year $ 28,290 $ 28,180 Due after one year but within five years 187,173 183,944 Due after five years but within ten years 102,653 100,613 Due after ten years 86,942 85,365 Total $ 405,058 $ 398,102 |
Schedule of Realized Gain (loss) | Sales proceeds and gross realized gains and losses on sales of available-for-sale securities were as follows for the periods indicated: (Dollars in thousands) Three months ended March 31, 2018 2017 Sales proceeds $ 2,535 $ 11,797 Realized gains $ 35 $ 171 Realized losses - (24 ) Net realized gains $ 35 $ 147 |
Loans and Allowance for Loan 21
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Loans | Loans consisted of the following as of the dates indicated below: March 31, December 31, (Dollars in thousands) 2018 2017 One-to-four family residential real estate $ 134,565 $ 136,215 Construction and land 24,372 19,356 Commercial real estate 123,194 120,624 Commercial 52,575 54,591 Agriculture 81,691 83,008 Municipal 3,305 3,396 Consumer 22,516 22,046 Total gross loans 442,218 439,236 Net deferred loan costs and loans in process (395 ) (34 ) Allowance for loan losses (5,644 ) (5,459 ) Loans, net $ 436,179 $ 433,743 |
Schedule of Allowance for Credit Losses on Financing Receivables | The following tables provide information on the Company’s allowance for loan losses by loan class and allowance methodology: Three months ended March 31, 2018 (Dollars in thousands) One-to-four family residential real estate Construction and land Commercial real estate Commercial Agriculture Municipal Consumer Total Allowance for loan losses: Balance at January 1, 2018 $ 542 $ 181 $ 1,540 $ 1,226 $ 1,812 $ 8 $ 150 $ 5,459 Charge-offs - - - - - - (33 ) (33 ) Recoveries 1 - 1 1 - 2 13 18 Provision for loan losses (66 ) (60 ) 21 257 55 (3 ) (4 ) 200 Balance at March 31, 2018 $ 477 $ 121 $ 1,562 $ 1,484 $ 1,867 $ 7 $ 126 $ 5,644 Three months ended March 31, 2017 (Dollars in thousands) One-to-four family residential real estate Construction and land Commercial real estate Commercial Agriculture Municipal Consumer Total Allowance for loan losses: Balance at January 1, 2017 $ 504 $ 53 $ 1,777 $ 1,119 $ 1,684 $ 12 $ 195 $ 5,344 Charge-offs (19 ) - - - - - (107 ) (126 ) Recoveries 1 - - 8 1 - 49 59 Provision for loan losses 7 18 (37 ) (26 ) 46 (1 ) 43 50 Balance at March 31, 2017 $ 493 $ 71 $ 1,740 $ 1,101 $ 1,731 $ 11 $ 180 $ 5,327 As of March 31, 2018 (Dollars in thousands) One-to-four family residential real estate Construction and land Commercial real estate Commercial Agriculture Municipal Consumer Total Allowance for loan losses: Individually evaluated for loss $ 84 $ 23 $ 15 $ 685 $ 71 $ - $ 1 $ 879 Collectively evaluated for loss 393 98 1,547 799 1,796 7 125 4,765 Total $ 477 $ 121 $ 1,562 $ 1,484 $ 1,867 $ 7 $ 126 $ 5,644 Loan balances: Individually evaluated for loss $ 740 $ 1,780 $ 3,922 $ 2,024 $ 776 $ 126 $ 40 $ 9,408 Collectively evaluated for loss 133,825 22,592 119,272 50,551 80,915 3,179 22,476 432,810 Total $ 134,565 $ 24,372 $ 123,194 $ 52,575 $ 81,691 $ 3,305 $ 22,516 $ 442,218 As of December 31, 2017 (Dollars in thousands) One-to-four family residential real estate Construction and land Commercial real estate Commercial Agriculture Municipal Consumer Total Allowance for loan losses: Individually evaluated for loss $ 73 $ 102 $ 52 $ 391 $ 24 $ - $ - $ 642 Collectively evaluated for loss 469 79 1,488 835 1,788 8 150 4,817 Total $ 542 $ 181 $ 1,540 $ 1,226 $ 1,812 $ 8 $ 150 $ 5,459 Loan balances: Individually evaluated for loss $ 747 $ 2,031 $ 3,973 $ 2,002 $ 833 $ 140 $ 34 $ 9,760 Collectively evaluated for loss 135,468 17,325 116,651 52,589 82,175 3,256 22,012 429,476 Total $ 136,215 $ 19,356 $ 120,624 $ 54,591 $ 83,008 $ 3,396 $ 22,046 $ 439,236 |
Schedule of Impaired Financing Receivables | The following tables present information on impaired loans: (Dollars in thousands) As of March 31, 2018 Unpaid contractual principal Impaired loan balance Impaired loans without an allowance Impaired loans with an allowance Related allowance recorded Year-to-date average loan balance Year-to-date interest income recognized One-to-four family residential real estate $ 740 $ 740 $ 467 $ 273 $ 84 $ 746 $ 2 Construction and land 3,515 1,780 417 1,363 23 1,797 15.00 Commercial real estate 3,922 3,922 3,884 38 15 3,925 122.00 Commercial 2,024 2,024 7 2,017 685 2,041 - Agriculture 991 776 517 259 71 791 - Municipal 126 126 126 - - 138 - Consumer 40 40 33 7 1 40 - Total impaired loans $ 11,358 $ 9,408 $ 5,451 $ 3,957 $ 879 $ 9,478 $ 139 (Dollars in thousands) As of December 31, 2017 Unpaid contractual principal Impaired loan balance Impaired loans without an allowance Impaired loans with an allowance Related allowance recorded Year-to-date average loan balance Year-to-date interest income recognized One-to-four family residential real estate $ 747 $ 747 $ 503 $ 244 $ 73 $ 774 $ 8 Construction and land 3,766 2,031 430 1,601 102 2,033 65 Commercial real estate 3,973 3,973 3,888 85 52 3,989 490 Commercial 2,002 2,002 11 1,991 391 2,082 - Agriculture 1,048 833 545 288 24 912 1 Municipal 140 140 140 - - 192 5 Consumer 34 34 34 - - 35 - Total impaired loans $ 11,710 $ 9,760 $ 5,551 $ 4,209 $ 642 $ 10,017 $ 569 |
Schedule of Past Due Financing Receivables | The following tables present information on the Company’s past due and non-accrual loans by loan class: (Dollars in thousands) As of March 31, 2018 30-59 days delinquent and accruing 60-89 days delinquent and accruing 90 days or more delinquent and accruing Total past due loans accruing Non-accrual loans Total past due and non-accrual loans Total loans not past due One-to-four family residential real estate $ 314 $ - $ - $ 314 $ 549 $ 863 $ 133,702 Construction and land - - - - 581 581 23,791 Commercial real estate - - - - 1,794 1,794 121,400 Commercial 166 356 - 522 2,024 2,546 50,029 Agriculture 177 75 - 252 776 1,028 80,663 Municipal - - - - - - 3,305 Consumer 35 2 - 37 40 77 22,439 Total $ 692 $ 433 $ - $ 1,125 $ 5,764 $ 6,889 $ 435,329 Percent of gross loans 0.16 % 0.10 % 0.00 % 0.26 % 1.30 % 1.56 % 98.44 % (Dollars in thousands) As of December 31, 2017 30-59 days delinquent and accruing 60-89 days delinquent and accruing 90 days or more delinquent and accruing Total past due loans accruing Non-accrual loans Total past due and non-accrual loans Total loans not past due One-to-four family residential real estate $ 101 $ 313 $ - $ 414 $ 552 $ 966 $ 135,249 Construction and land - 4 - 4 779 783 18,573 Commercial real estate 22 209 - 231 1,841 2,072 118,552 Commercial - 397 - 397 2,002 2,399 52,192 Agriculture - - - - 833 833 82,175 Municipal - - - - - - 3,396 Consumer 105 204 - 309 34 343 21,703 Total $ 228 $ 1,127 $ - $ 1,355 $ 6,041 $ 7,396 $ 431,840 Percent of gross loans 0.05 % 0.26 % 0.00 % 0.31 % 1.38 % 1.68 % 98.32 % |
Schedule of Risk Categories by Loan Class | The following table provides information on the Company’s risk categories by loan class: As of March 31, 2018 As of December 31, 2017 (Dollars in thousands) Nonclassified Classified Nonclassified Classified One-to-four family residential real estate $ 133,478 $ 1,087 $ 135,475 $ 740 Construction and land 23,791 581 18,577 779 Commercial real estate 117,401 5,793 114,736 5,888 Commercial 46,215 6,360 52,313 2,278 Agriculture 73,641 8,050 76,455 6,553 Municipal 3,305 - 3,396 - Consumer 22,476 40 22,006 40 Total $ 420,307 $ 21,911 $ 422,958 $ 16,278 |
Schedule of Troubled Debt Restructurings on Financing Receivables | The following table presents information on loans that are classified as TDRs: (Dollars in thousands) As of March 31, 2018 As of December 31, 2017 Number of loans Non-accrual balance Accruing balance Number of loans Non-accrual balance Accruing balance One-to-four family residential real estate 2 $ - $ 191 2 $ - $ 194 Construction and land 4 571 1,199 4 575 1,252 Commercial real estate 2 - 2,128 3 45 2,133 Agriculture 8 444 - 9 471 - Municipal 2 - 126 2 - 140 Total troubled debt restructurings 18 $ 1,015 $ 3,644 20 $ 1,091 $ 3,719 |
Goodwill and Other Intangible22
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | A summary of the other intangible assets that continue to be subject to amortization is as follows: (Dollars in thousands) As of March 31, 2018 Gross carrying amount Accumulated amortization Net carrying amount Core deposit intangible assets $ 2,067 $ (1,435 ) $ 632 Lease intangible asset 350 (200 ) 150 Mortgage servicing rights 6,351 (3,629 ) 2,722 Total other intangible assets $ 8,768 $ (5,264 ) $ 3,504 (Dollars in thousands) As of December 31, 2017 Gross carrying amount Accumulated amortization Net carrying amount Core deposit intangible assets $ 2,067 $ (1,381 ) $ 686 Lease intangible asset 350 (188 ) 162 Mortgage servicing rights 6,285 (3,474 ) 2,811 Total other intangible assets $ 8,702 $ (5,043 ) $ 3,659 |
Schedule of Finite-lived Intangible Assets, Future Amortization Expense | The following sets forth estimated amortization expense for core deposit and lease intangible assets for the remainder of 2018 and in successive years ending December 31: (Dollars in thousands) Amortization expense Remainder of 2018 $ 186 2019 214 2020 177 2021 121 2022 58 Thereafter 26 Total $ 782 |
Schedule of Participating Mortgage Loans | Mortgage loans serviced for others are not reported as assets. The following table provides information on the principal balances of mortgage loans serviced for others: (Dollars in thousands) March 31, December 31, 2018 2017 FHLMC $ 520,375 $ 517,863 FHLB 9,587 9,782 Total $ 529,962 $ 527,645 |
Schedule of Servicing Asset at Amortized Cost | Activity for mortgage servicing rights is as follows: Three months ended (Dollars in thousands) March 31, 2018 2017 Mortgage servicing rights: Balance at beginning of period $ 2,811 $ 2,849 Additions 122 161 Amortization (211 ) (223 ) Balance at end of period $ 2,722 $ 2,787 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings per share: | |
Schedule of Earnings Per Share, Basic and Diluted | The shares used in the calculation of basic and diluted earnings per share are shown below: Three months ended (Dollars in thousands, except per share amounts) March 31, 2018 2017 Net earnings $ 2,099 $ 2,205 Weighted average common shares outstanding - basic (1) 4,107,812 4,063,289 Assumed exercise of stock options (1) 43,170 83,106 Weighted average common shares outstanding - diluted (1) 4,150,982 4,146,395 Net earnings per share (1): Basic $ 0.51 $ 0.54 Diluted $ 0.51 $ 0.54 (1) Share and per share values for the period ended March 31, 2017 have been adjusted to give effect to the 5% stock dividend paid during December 2017. |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Repurchase Agreements | The following is a summary of the balances and collateral of the Company’s repurchase agreements: As of March 31, 2018 (dollars in thousands) Overnight and Greater Continuous Up to 30 days 30-90 days than 90 days Total Repurchase agreements: U.S. federal treasury obligations $ 424 $ - $ - $ - $ 424 U.S. federal agency obligations 4,618 - - - 4,618 Agency mortgage-backed securities 7,701 - - - 7,701 Total $ 12,743 $ - $ - $ - $ 12,743 As of December 31, 2017 Overnight and Greater Continuous Up to 30 days 30-90 days than 90 days Total Repurchase agreements: U.S. federal agency obligations $ 5,147 $ - $ - $ - $ 5,147 Agency mortgage-backed securities 8,362 - - - 8,362 Total $ 13,509 $ - $ - $ - $ 13,509 |
Revenue from Contracts with C25
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from Contracts with Customers Within Non-interest Income | Items outside the scope of ASC 606 are noted as such. Three months ended (Dollars in thousands) March 31, 2018 2017 Non-interest income: Service charges on deposits Overdraft fees $ 797 $ 854 Other 138 145 Interchange income 442 361 Loan servicing fees (1) 336 319 Office lease income (1) 152 150 Gains on sales of loans (1) 1,161 1,389 Bank owned life insurance income (1) 159 117 Gains on sales of investment securities (1) 35 147 Gains (losses) on sales of real estate owned 1 (15 ) Other 180 174 Total non-interest income $ 3,401 $ 3,641 (1) Not within the scope of ASC 606. |
Fair Value of Financial Instr26
Fair Value of Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, by Balance Sheet Grouping | Fair value estimates of the Company’s financial instruments as of March 31, 2018 and December 31, 2017, including methods and assumptions utilized, are set forth below: (Dollars in thousands) As of March 31, 2018 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 13,042 $ 13,042 $ - $ - $ 13,042 Investment securities available-for-sale 398,102 1,961 396,141 - 398,102 Common stocks 7 7 - - 7 Bank stocks, at cost 5,457 n/a n/a n/a n/a Loans, net 436,179 - - 440,680 440,680 Loans held for sale 6,287 - 6,287 - 6,287 Derivative financial instruments 794 - 794 - 794 Accrued interest receivable 4,233 10 2,074 2,149 4,233 Financial liabilities: Non-maturity deposits $ (641,849 ) $ (641,849 ) $ - $ - (641,849 ) Time deposits (127,712 ) - (125,388 ) - (125,388 ) FHLB borrowings (39,747 ) - (39,777 ) - (39,777 ) Subordinated debentures (21,534 ) - (19,459 ) - (19,459 ) Other borrowings (12,743 ) - (12,743 ) - (12,743 ) Accrued interest payable (258 ) - (258 ) - (258 ) As of December 31, 2017 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 16,584 $ 16,584 $ - $ - $ 16,584 Investment securities available-for-sale 387,983 1,998 385,985 - 387,983 Bank stocks, at cost 5,423 n/a n/a n/a n/a Loans, net 433,743 - - 436,910 436,910 Loans held for sale 6,535 - 6,535 - 6,535 Derivative financial instruments 395 - 395 - 395 Accrued interest receivable 4,409 20 2,234 2,155 4,409 Financial liabilities: Non-maturity deposits $ (642,281 ) $ (642,281 ) $ - $ - (642,281 ) Time deposits (123,277 ) - (121,298 ) - (121,298 ) FHLB borrowings (31,600 ) - (31,706 ) - (31,706 ) Subordinated debentures (21,484 ) - (19,134 ) - (19,134 ) Other borrowings (13,509 ) - (13,509 ) - (13,509 ) Accrued interest payable (274 ) - (274 ) - (274 ) |
Schedule of Fair Value, Assets Measured on Recurring Basis | The following tables represent the Company’s financial instruments that are measured at fair value on a recurring basis at March 31, 2018 and December 31, 2017, allocated to the appropriate fair value hierarchy: (Dollars in thousands) As of March 31, 2018 Fair value hierarchy Total Level 1 Level 2 Level 3 Assets: Available-for-sale investment securities: U. S. treasury securities $ 1,961 $ 1,961 $ - $ - U. S. federal agency obligations 14,445 - 14,445 - Municipal obligations, tax exempt 180,466 - 180,466 - Municipal obligations, taxable 54,541 - 54,541 - Mortgage-backed securities 137,704 - 137,704 - Certificates of deposit 8,985 - 8,985 - Common stocks 7 7 - - Loans held for sale 6,287 - 6,287 - Derivative financial instruments 794 - 794 - As of December 31, 2017 Fair value hierarchy Total Level 1 Level 2 Level 3 Assets: Available-for-sale investment securities: U. S. treasury securities $ 1,990 $ 1,990 $ - $ - U. S. federal agency obligations 16,492 - 16,492 - Municipal obligations, tax exempt 184,738 - 184,738 - Municipal obligations, taxable 57,976 - 57,976 - Agency mortgage-backed securities 117,555 - 117,555 - Certificates of deposit 9,224 - 9,224 - Common stocks 8 8 - - Loans held for sale 6,535 - 6,535 - Derivative financial instruments 395 - 395 - |
Schedule of Fair Value Contractual Balance and Gain Loss on Loans Held for Sale | The aggregate fair value, contractual balance (including accrued interest), and gain on loans held for sale were as follows: As of As of (Dollars in thousands) March 31, 2018 December 31, 2017 Aggregate fair value $ 6,287 $ 6,535 Contractual balance 6,271 6,420 Gain $ 16 $ 115 |
Schedule of Gains and Losses from Changes in Fair Value of Loans Held for Sale | The total amount of gains from changes in fair value of loans held for sale included in earnings were as follows: Three months ended March 31, (Dollars in thousands) 2018 2017 Interest income $ 48 $ 45 Change in fair value (99 ) 109 Total change in fair value $ (51 ) $ 154 |
Schedule of Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following tables represent the Company’s financial instruments that are measured at fair value on a non-recurring basis as of March 31, 2018 and December 31, 2017 allocated to the appropriate fair value hierarchy: As of March 31, 2018 Total Fair value hierarchy (losses)/ (Dollars in thousands) Total Level 1 Level 2 Level 3 gains Assets: Impaired loans: One-to-four family residential real estate $ 189 $ - $ - $ 189 $ (11 ) Construction and land 1,340 - - 1,340 44 Commercial real estate 23 - - 23 1 Commercial 1,332 - - $ 1,332 (294 ) Agriculture 188 - - $ 188 (47 ) Consumer 6 - - $ 6 (1 ) As of December 31, 2017 Total Fair value hierarchy (losses)/ Total Level 1 Level 2 Level 3 gains Assets: Impaired loans: One-to-four family residential real estate $ 171 $ - $ - $ 171 $ (73 ) Construction and land 1,499 - - 1,499 (102 ) Commercial real estate 33 - - 33 12 Commercial 1,600 - - 1,600 (304 ) Agriculture 264 - - 264 65 Real estate owned: One-to-four family residential real estate 325 - - 325 (68 ) Commercial real estate 85 - - 85 (50 ) |
Schedule of Fair Value Measurements on Nonrecurring, Valuation Techniques | The following table presents quantitative information about Level 3 fair value measurements measured at fair value on a nonrecurring basis as of March 31, 2018 and December 31, 2017. (Dollars in thousands) Fair value Valuation technique Unobservable inputs Range As of March 31, 2018 Impaired loans: One-to-four family residential real estate $ 189 Sales comparison Adjustment to appraised value 7%-50 % Construction and land 1,340 Sales comparison Adjustment to appraised value 0%-35 % Commercial real estate 23 Sales comparison Adjustment to appraised value 0%-20 % Commercial 1,332 Sales comparison Adjustment to comparable sales 15%-50 % Agriculture 188 Sales comparison Adjustment to appraised value 0%-25 % Consumer 6 Sales comparison Adjustment to appraised value 0%-100 % As of December 31, 2017 Impaired loans: One-to-four family residential real estate $ 171 Sales comparison Adjustment to appraised value 16%-50 % Construction and land 1,499 Sales comparison Adjustment to appraised value 0%-25 % Commerical real estate 33 Sales comparison Adjustment to appraised value 0%-91 % Commercial 1,600 Sales comparison Adjustment to comparable sales 15%-50 % Agriculture 264 Sales comparison Adjustment to appraised value 0%-50 % Real estate owned: One-to-four family residential real estate 325 Sales comparison Adjustment to appraised value 10 % Commercial real estate 85 Sales comparison Adjustment to appraised value 10 % |
Regulatory Capital Requiremen27
Regulatory Capital Requirements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements for Mortgage Companies | The following is a comparison of the Company’s regulatory capital to minimum capital requirements at March 31, 2018 and December 31, 2017: For capital Actual adequacy purposes (Dollars in thousands) Amount Ratio Amount Ratio (1) As of March 31, 2018 Leverage $ 92,606 10.15 % $ 36,495 4.0 % Common Equity Tier 1 Capital 71,723 13.21 % 34,602 6.4 % Tier 1 Capital 92,606 17.06 % 42,743 7.9 % Total Risk Based Capital 98,390 18.13 % 53,599 9.9 % As of December 31, 2017 Leverage $ 88,605 9.80 % $ 36,180 4.0 % Common Equity Tier 1 Capital 68,269 12.83 % 30,590 5.8 % Tier 1 Capital 88,605 16.65 % 38,571 7.3 % Total Risk Based Capital 94,208 17.71 % 49,211 9.3 % (1) The required ratios for capital adequacy purposes include a capital conservation buffer of 1.875% for March 31, 2018 and 1.25% for December 31, 2017 |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following is a comparison of the Bank’s regulatory capital to minimum capital requirements at March 31, 2018 and December 31, 2017: To be well-capitalized under prompt For capital corrective (Dollars in thousands) Actual adequacy purposes action provisions Amount Ratio Amount Ratio(1) Amount Ratio As of March 31, 2018 Leverage $ 91,084 10.01 % $ 36,401 4.0 % $ 45,502 5.0 % Common Equity Tier 1 Capital 91,084 16.71 % 34,755 6.4 % 35,437 6.5 % Tier 1 Capital 91,084 16.71 % 42,933 7.9 % 43,614 8.0 % Total Risk Based Capital 96,868 17.77 % 53,836 9.9 % 54,518 10.0 % As of December 31, 2017 Leverage $ 86,808 9.62 % $ 36,097 4.0 % $ 45,122 5.0 % Common Equity Tier 1 Capital 86,808 16.35 % 30,529 5.8 % 34,511 6.5 % Tier 1 Capital 86,808 16.35 % 38,493 7.3 % 42,475 8.0 % Total Risk Based Capital 92,407 17.40 % 49,112 9.3 % 53,094 10.0 % (1) The required ratios for capital adequacy purposes include a capital conservation buffer of 1.875% for March 31, 2018 and 1.25% for December 31, 2017. |
Investments (Details Narrative)
Investments (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Security owned and pledged as collateral, fair value, total | $ 227,300 | $ 232,500 |
Equity method investment, ownership percentage | 10.00% | |
Common stock investments with a fair value | $ 7 | |
Investments fair value declined | $ 1 |
Investments - Schedule of Avail
Investments - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 405,058 | $ 388,520 |
Gross unrealized gains | 562 | 2,486 |
Gross unrealized losses | (7,518) | (3,023) |
Estimated fair value | 398,102 | 387,983 |
Common Stocks [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | ||
Gross unrealized gains | 8 | |
Gross unrealized losses | ||
Estimated fair value | 8 | |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 1,999 | 1,999 |
Gross unrealized gains | ||
Gross unrealized losses | (38) | (9) |
Estimated fair value | 1,961 | 1,990 |
US Federal Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 14,554 | 16,572 |
Gross unrealized gains | 4 | 5 |
Gross unrealized losses | (113) | (85) |
Estimated fair value | 14,445 | 16,492 |
Municipal Obligations, Tax Exempt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 183,449 | 183,846 |
Gross unrealized gains | 459 | 1,972 |
Gross unrealized losses | (3,442) | (1,080) |
Estimated fair value | 180,466 | 184,738 |
Municipal Obligations, Taxable [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 55,065 | 57,783 |
Gross unrealized gains | 91 | 409 |
Gross unrealized losses | (615) | (216) |
Estimated fair value | 54,541 | 57,976 |
Agency Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 141,006 | 119,096 |
Gross unrealized gains | 8 | 92 |
Gross unrealized losses | (3,310) | (1,633) |
Estimated fair value | 137,704 | 117,555 |
Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 8,985 | 9,224 |
Gross unrealized gains | ||
Gross unrealized losses | ||
Estimated fair value | $ 8,985 | $ 9,224 |
Investments - Schedule of Ava30
Investments - Schedule of Available for Sale Securities Continuous Unrealized Loss Position Fair Value (Details) $ in Thousands | Mar. 31, 2018USD ($)Number | Dec. 31, 2017USD ($)Number |
Schedule of Available-for-sale Securities [Line Items] | ||
No. of securities | Number | 536 | 345 |
Fair value, Less than 12 months | $ 238,089 | $ 134,700 |
Unrealized losses, Less than 12 months | (4,088) | (1,022) |
Fair value, 12 months or longer | 86,813 | 89,790 |
Unrealized losses, 12 months or longer | (3,430) | (2,001) |
Total, Fair value | 324,902 | 224,490 |
Total, Unrealized losses | $ (7,518) | $ (3,023) |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
No. of securities | Number | 1 | 1 |
Fair value, Less than 12 months | $ 1,961 | $ 1,990 |
Unrealized losses, Less than 12 months | (38) | (9) |
Fair value, 12 months or longer | ||
Unrealized losses, 12 months or longer | ||
Total, Fair value | 1,961 | 1,990 |
Total, Unrealized losses | $ (38) | $ (9) |
US Federal Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
No. of securities | Number | 12 | 14 |
Fair value, Less than 12 months | $ 5,969 | $ 7,989 |
Unrealized losses, Less than 12 months | (46) | (24) |
Fair value, 12 months or longer | 8,248 | 8,272 |
Unrealized losses, 12 months or longer | (67) | (61) |
Total, Fair value | 14,217 | 16,261 |
Total, Unrealized losses | $ (113) | $ (85) |
Municipal Obligations, Tax Exempt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
No. of securities | Number | 317 | 178 |
Fair value, Less than 12 months | $ 95,894 | $ 37,299 |
Unrealized losses, Less than 12 months | (1,829) | (273) |
Fair value, 12 months or longer | 30,798 | 31,930 |
Unrealized losses, 12 months or longer | (1,613) | (807) |
Total, Fair value | 126,692 | 69,229 |
Total, Unrealized losses | $ (3,442) | $ (1,080) |
Municipal Obligations, Taxable [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
No. of securities | Number | 105 | 73 |
Fair value, Less than 12 months | $ 35,148 | $ 18,792 |
Unrealized losses, Less than 12 months | (445) | (96) |
Fair value, 12 months or longer | 9,850 | 9,744 |
Unrealized losses, 12 months or longer | (170) | (120) |
Total, Fair value | 44,998 | 28,536 |
Total, Unrealized losses | $ (615) | $ (216) |
Agency Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
No. of securities | Number | 101 | 79 |
Fair value, Less than 12 months | $ 99,117 | $ 68,630 |
Unrealized losses, Less than 12 months | (1,730) | (620) |
Fair value, 12 months or longer | 37,917 | 39,844 |
Unrealized losses, 12 months or longer | (1,580) | (1,013) |
Total, Fair value | 137,034 | 108,474 |
Total, Unrealized losses | $ (3,310) | $ (1,633) |
Investments - Schedule of Inves
Investments - Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost, Due in less than one year | $ 28,290 | |
Amortized cost, Due after one year but within five years | 187,173 | |
Amortized cost, Due after five years but within ten years | 102,653 | |
Amortized cost, Due after ten years | 86,942 | |
Amortized cost, Total | 405,058 | $ 388,520 |
Estimated fair value, Due in less than one year | 28,180 | |
Estimated fair value, Due after one year but within five years | 183,944 | |
Estimated fair value, Due after five years but within ten years | 100,613 | |
Estimated fair value, Due after ten years | 85,365 | |
Estimated fair value, Total | $ 398,102 | $ 387,983 |
Investments - Schedule of Reali
Investments - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Sales proceeds | $ 2,535 | $ 11,797 |
Realized gains | 35 | 171 |
Realized losses | (24) | |
Net realized gains | $ 35 | $ 147 |
Loans and Allowance for Loan 33
Loans and Allowance for Loan Losses (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net loan charge-offs | $ 15 | $ 67 | ||
Impaired financing receivable loan balance charged off | 9,400 | $ 9,800 | ||
Nonaccrual loans , interest earned | 76 | 31 | ||
Loans receivable, gross, total | 442,218 | 439,236 | ||
Impaired financing receivable, recorded investment, total | 9,408 | 9,760 | ||
Loans and leases receivable, impaired, commitment to lend | 8 | |||
Loans and leases receivable, allowance | 5,644 | 5,327 | 5,459 | $ 5,344 |
Commercial Real Estate Loan [Member] | ||||
Commercial real estate loans receivable, gross | 11 | |||
Trouble Debt Restructurings [Member] | ||||
Loans receivable, gross, total | 15 | |||
Provision for loan losses reversal | 33 | $ 13 | ||
Loans and leases receivable, allowance | $ 94 | $ 127 |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses - Schedule of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Total gross loans | $ 442,218 | $ 439,236 | ||
Net deferred loan costs and loans in process | (395) | (34) | ||
Allowance for loan losses | (5,644) | (5,459) | $ (5,327) | $ (5,344) |
Loans, net | 436,179 | 433,743 | ||
One-To-Four Family Residential Real Estate Loan [Member] | ||||
Total gross loans | 134,565 | 136,215 | ||
Allowance for loan losses | (477) | (542) | (493) | (504) |
Loans, net | 134,565 | 136,215 | ||
Construction and Land Loans [Member] | ||||
Total gross loans | 24,372 | 19,356 | ||
Allowance for loan losses | (121) | (181) | (71) | (53) |
Loans, net | 24,372 | 19,356 | ||
Commercial Real Estate Loans [Member] | ||||
Total gross loans | 123,194 | 120,624 | ||
Allowance for loan losses | (1,562) | (1,540) | ||
Loans, net | 123,194 | 120,624 | ||
Commercial Loans [Member] | ||||
Total gross loans | 52,575 | 54,591 | ||
Allowance for loan losses | (1,484) | (1,226) | (1,101) | (1,119) |
Loans, net | 52,575 | 54,591 | ||
Agriculture Loan [Member] | ||||
Total gross loans | 81,691 | 83,008 | ||
Allowance for loan losses | (1,867) | (1,812) | (1,731) | (1,684) |
Loans, net | 81,691 | 83,008 | ||
Municipal Loans [Member] | ||||
Total gross loans | 3,305 | 3,396 | ||
Allowance for loan losses | (7) | (8) | $ (11) | $ (12) |
Loans, net | 3,305 | 3,396 | ||
Consumer Loans [Member] | ||||
Total gross loans | 22,516 | 22,046 | ||
Allowance for loan losses | (126) | (150) | ||
Loans, net | $ 22,516 | $ 22,046 |
Loans and Allowance for Loan 35
Loans and Allowance for Loan Losses - Schedule of Allowance for Credit Losses On Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
Balance | $ 5,459 | $ 5,344 | ||
Charge-offs | (33) | (126) | ||
Recoveries | 18 | 59 | ||
Provision for loan losses | 200 | 50 | ||
Balance | 5,644 | 5,327 | ||
Individually evaluated for loss | $ 879 | $ 642 | ||
Collectively evaluated for loss | 4,765 | 4,817 | ||
Total | 5,459 | 5,344 | 5,644 | 5,459 |
Individually evaluated for loss | 9,408 | 9,760 | ||
Collectively evaluated for loss | 432,810 | 429,476 | ||
Total | 436,179 | 433,743 | ||
One-To-Four Family Residential Real Estate Loan [Member] | ||||
Balance | 542 | 504 | ||
Charge-offs | (19) | |||
Recoveries | 1 | 1 | ||
Provision for loan losses | (66) | 7 | ||
Balance | 477 | 493 | ||
Individually evaluated for loss | 84 | 73 | ||
Collectively evaluated for loss | 393 | 469 | ||
Total | 542 | 504 | 477 | 542 |
Individually evaluated for loss | 740 | 747 | ||
Collectively evaluated for loss | 133,825 | 135,468 | ||
Total | 134,565 | 136,215 | ||
Construction and Land Loans [Member] | ||||
Balance | 181 | 53 | ||
Charge-offs | ||||
Recoveries | ||||
Provision for loan losses | (60) | 18 | ||
Balance | 121 | 71 | ||
Individually evaluated for loss | 23 | 102 | ||
Collectively evaluated for loss | 98 | 79 | ||
Total | 181 | 71 | 121 | 181 |
Individually evaluated for loss | 1,780 | 2,031 | ||
Collectively evaluated for loss | 22,592 | 17,325 | ||
Total | 24,372 | 19,356 | ||
Commercial Real Estate Loan [Member] | ||||
Balance | 1,540 | 1,777 | ||
Charge-offs | ||||
Recoveries | 1 | |||
Provision for loan losses | 21 | (37) | ||
Balance | 1,562 | 1,740 | ||
Total | 1,540 | 1,777 | 1,562 | 1,540 |
Commercial Loans [Member] | ||||
Balance | 1,226 | 1,119 | ||
Charge-offs | ||||
Recoveries | 1 | 8 | ||
Provision for loan losses | 257 | (26) | ||
Balance | 1,484 | 1,101 | ||
Individually evaluated for loss | 685 | 391 | ||
Collectively evaluated for loss | 799 | 835 | ||
Total | 1,226 | 1,119 | 1,484 | 1,226 |
Individually evaluated for loss | 2,024 | 2,002 | ||
Collectively evaluated for loss | 50,551 | 52,589 | ||
Total | 52,575 | 54,591 | ||
Agriculture Loan [Member] | ||||
Balance | 1,812 | 1,684 | ||
Charge-offs | ||||
Recoveries | 1 | |||
Provision for loan losses | 55 | 46 | ||
Balance | 1,867 | 1,731 | ||
Individually evaluated for loss | 71 | 24 | ||
Collectively evaluated for loss | 1,796 | 1,788 | ||
Total | 1,812 | 1,684 | 1,867 | 1,812 |
Individually evaluated for loss | 776 | 833 | ||
Collectively evaluated for loss | 80,915 | 82,175 | ||
Total | 81,691 | 83,008 | ||
Municipal Loans [Member] | ||||
Balance | 8 | 12 | ||
Charge-offs | ||||
Recoveries | 2 | |||
Provision for loan losses | (3) | (1) | ||
Balance | 7 | 11 | ||
Individually evaluated for loss | ||||
Collectively evaluated for loss | 7 | 8 | ||
Total | 8 | 12 | 7 | 8 |
Individually evaluated for loss | 126 | 140 | ||
Collectively evaluated for loss | 3,179 | 3,256 | ||
Total | 3,305 | 3,396 | ||
Consumer Loan [Member] | ||||
Balance | 195 | |||
Charge-offs | (33) | (107) | ||
Recoveries | 13 | 49 | ||
Provision for loan losses | (4) | 43 | ||
Balance | 180 | |||
Total | $ 195 | |||
Commercial Real Estate Loans [Member] | ||||
Balance | 1,540 | |||
Balance | 1,562 | |||
Individually evaluated for loss | 15 | 52 | ||
Collectively evaluated for loss | 1,547 | 1,488 | ||
Total | 1,540 | 1,562 | 1,540 | |
Individually evaluated for loss | 3,922 | 3,973 | ||
Collectively evaluated for loss | 119,272 | 116,651 | ||
Total | 123,194 | 120,624 | ||
Consumer Loans [Member] | ||||
Balance | 150 | |||
Balance | 126 | |||
Individually evaluated for loss | 1 | |||
Collectively evaluated for loss | 125 | 150 | ||
Total | $ 150 | 126 | 150 | |
Individually evaluated for loss | 40 | 34 | ||
Collectively evaluated for loss | 22,476 | 22,012 | ||
Total | $ 22,516 | $ 22,046 |
Loans and Allowance for Loan 36
Loans and Allowance for Loan Losses - Schedule of Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Unpaid contractual principal | $ 11,358 | $ 11,710 | |
Impaired loan balance | 9,408 | 9,760 | |
Impaired loans without an allowance | 5,451 | 5,551 | |
Impaired loans with an allowance | 3,957 | 4,209 | |
Related allowance recorded | 879 | 642 | |
Year-to-date average loan balance | 9,478 | 10,017 | |
Year-to-date interest income recognized | 139 | 569 | |
One-To-Four Family Residential Real Estate Loan [Member] | |||
Unpaid contractual principal | 740 | 747 | |
Impaired loan balance | 740 | 747 | |
Impaired loans without an allowance | 467 | 503 | |
Impaired loans with an allowance | 273 | 244 | |
Related allowance recorded | 84 | 73 | |
Year-to-date average loan balance | 746 | 774 | |
Year-to-date interest income recognized | 2 | 8 | |
Construction and Land Loans [Member] | |||
Unpaid contractual principal | 3,515 | 3,766 | |
Impaired loan balance | 1,780 | 2,031 | |
Impaired loans without an allowance | 417 | 430 | |
Impaired loans with an allowance | 1,363 | 1,601 | |
Related allowance recorded | 23 | 102 | |
Year-to-date average loan balance | 1,797 | 2,033 | |
Year-to-date interest income recognized | 15 | 65 | |
Commercial Real Estate Loans [Member] | |||
Unpaid contractual principal | 3,922 | 3,973 | |
Impaired loan balance | 3,922 | 3,973 | |
Impaired loans without an allowance | 3,884 | 3,888 | |
Impaired loans with an allowance | 38 | 85 | |
Related allowance recorded | 15 | 52 | |
Commercial Loans [Member] | |||
Unpaid contractual principal | 2,024 | 2,002 | |
Impaired loan balance | 2,024 | 2,002 | |
Impaired loans without an allowance | 7 | 11 | |
Impaired loans with an allowance | 2,017 | 1,991 | |
Related allowance recorded | 685 | 391 | |
Year-to-date average loan balance | 2,041 | 2,082 | |
Year-to-date interest income recognized | |||
Agriculture Loan [Member] | |||
Unpaid contractual principal | 991 | 1,048 | |
Impaired loan balance | 776 | 833 | |
Impaired loans without an allowance | 517 | 545 | |
Impaired loans with an allowance | 259 | 288 | |
Related allowance recorded | 71 | 24 | |
Year-to-date average loan balance | 791 | 912 | |
Year-to-date interest income recognized | 1 | ||
Municipal Loans [Member] | |||
Unpaid contractual principal | 126 | 140 | |
Impaired loan balance | 126 | 140 | |
Impaired loans without an allowance | 126 | 140 | |
Impaired loans with an allowance | |||
Related allowance recorded | |||
Year-to-date average loan balance | 138 | 192 | |
Year-to-date interest income recognized | 5 | ||
Consumer Loans [Member] | |||
Unpaid contractual principal | 40 | 34 | |
Impaired loan balance | 40 | 34 | |
Impaired loans without an allowance | 33 | 34 | |
Impaired loans with an allowance | 7 | ||
Related allowance recorded | 1 | ||
Commercial Real Estate Loan [Member] | |||
Year-to-date average loan balance | 3,925 | 3,989 | |
Year-to-date interest income recognized | 122 | 490 | |
Consumer Loan [Member] | |||
Year-to-date average loan balance | 40 | 35 | |
Year-to-date interest income recognized |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses - Schedule of Past Due Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 1,125 | 1,355 |
Loans, Non-accrual loans | 5,764 | 6,041 |
Loan, Total past due and non-accrual loans | 6,889 | 7,396 |
Loan, Total loans not past due | $ 435,329 | $ 431,840 |
Percent of gross loans, 30-59 days delinquent and accruing | 0.16% | 0.05% |
Percent of gross loans, 60-89 days delinquent and accruing | 0.10% | 0.26% |
Percent of gross loans, 90 days or more delinquent and accruing | 0.00% | 0.00% |
Percentage of gross loans, Total past due loans accruing | 0.26% | 0.31% |
Percent of gross loans, Non-accrual loans | 1.30% | 1.38% |
Percentage of Total past due and non-accrual loans | 1.56% | 1.68% |
Percentage of Total loans not past due | 98.44% | 98.32% |
Commercial Loans [Member] | ||
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 522 | 397 |
Loans, Non-accrual loans | 2,024 | 2,002 |
Loan, Total past due and non-accrual loans | 2,546 | 2,399 |
Loan, Total loans not past due | 50,029 | 52,192 |
Agriculture Loan [Member] | ||
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 252 | |
Loans, Non-accrual loans | 776 | 833 |
Loan, Total past due and non-accrual loans | 1,028 | 833 |
Loan, Total loans not past due | 80,663 | 82,175 |
Municipal Loans [Member] | ||
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | ||
Loans, Non-accrual loans | ||
Loan, Total past due and non-accrual loans | ||
Loan, Total loans not past due | 3,305 | 3,396 |
Consumer Loans [Member] | ||
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 37 | 309 |
Loans, Non-accrual loans | 40 | 34 |
Loan, Total past due and non-accrual loans | 77 | 343 |
Loan, Total loans not past due | 22,439 | 21,703 |
30-59Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 692 | 228 |
30-59Days Delinquent and Accruing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 166 | |
30-59Days Delinquent and Accruing [Member] | Agriculture Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 177 | |
30-59Days Delinquent and Accruing [Member] | Municipal Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
30-59Days Delinquent and Accruing [Member] | Consumer Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 35 | 105 |
60-89 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 433 | 1,127 |
60-89 Days Delinquent and Accruing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 356 | 397 |
60-89 Days Delinquent and Accruing [Member] | Agriculture Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 75 | |
60-89 Days Delinquent and Accruing [Member] | Municipal Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
60-89 Days Delinquent and Accruing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 2 | 204 |
One-To-Four Family Residential Real Estate Loan [Member] | ||
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 314 | 414 |
Loans, Non-accrual loans | 549 | 552 |
Loan, Total past due and non-accrual loans | 863 | 966 |
Loan, Total loans not past due | 133,702 | 135,249 |
One-To-Four Family Residential Real Estate Loan [Member] | 30-59Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 314 | 101 |
One-To-Four Family Residential Real Estate Loan [Member] | 60-89 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 313 | |
Construction and Land Loans [Member] | ||
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 4 | |
Loans, Non-accrual loans | 581 | 779 |
Loan, Total past due and non-accrual loans | 581 | 783 |
Loan, Total loans not past due | 23,791 | 18,573 |
Construction and Land Loans [Member] | 30-59Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
Construction and Land Loans [Member] | 60-89 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 4 | |
Commercial Real Estate Loan [Member] | ||
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 231 | |
Loans, Non-accrual loans | 1,794 | 1,841 |
Loan, Total past due and non-accrual loans | 1,794 | 2,072 |
Loan, Total loans not past due | 121,400 | 118,552 |
Commercial Real Estate Loan [Member] | 30-59Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 22 | |
Commercial Real Estate Loan [Member] | 60-89 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | $ 209 |
Loans and Allowance for Loan 38
Loans and Allowance for Loan Losses - Schedule of Risk Categories by Loan Class (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable, Gross, Total | $ 442,218 | $ 439,236 |
One-To-Four Family Residential Real Estate Loan [Member] | ||
Loans and Leases Receivable, Gross, Total | 134,565 | 136,215 |
Construction and Land Loans [Member] | ||
Loans and Leases Receivable, Gross, Total | 24,372 | 19,356 |
Commercial Loans [Member] | ||
Loans and Leases Receivable, Gross, Total | 52,575 | 54,591 |
Agriculture Loan [Member] | ||
Loans and Leases Receivable, Gross, Total | 81,691 | 83,008 |
Municipal Loans [Member] | ||
Loans and Leases Receivable, Gross, Total | 3,305 | 3,396 |
Consumer Loans [Member] | ||
Loans and Leases Receivable, Gross, Total | 22,516 | 22,046 |
Loans Receivables Non Classified [Member] | ||
Loans and Leases Receivable, Gross, Total | 420,307 | 422,958 |
Loans Receivables Non Classified [Member] | One-To-Four Family Residential Real Estate Loan [Member] | ||
Loans and Leases Receivable, Gross, Total | 133,478 | 135,475 |
Loans Receivables Non Classified [Member] | Construction and Land Loans [Member] | ||
Loans and Leases Receivable, Gross, Total | 23,791 | 18,577 |
Loans Receivables Non Classified [Member] | Commercial Real Estate Loan [Member] | ||
Loans and Leases Receivable, Gross, Total | 117,401 | 114,736 |
Loans Receivables Non Classified [Member] | Commercial Loans [Member] | ||
Loans and Leases Receivable, Gross, Total | 46,215 | 52,313 |
Loans Receivables Non Classified [Member] | Agriculture Loan [Member] | ||
Loans and Leases Receivable, Gross, Total | 73,641 | 76,455 |
Loans Receivables Non Classified [Member] | Municipal Loans [Member] | ||
Loans and Leases Receivable, Gross, Total | 3,305 | 3,396 |
Loans Receivables Non Classified [Member] | Consumer Loans [Member] | ||
Loans and Leases Receivable, Gross, Total | 22,476 | 22,006 |
Loans Receivables Classified [Member] | ||
Loans and Leases Receivable, Gross, Total | 21,911 | 16,278 |
Loans Receivables Classified [Member] | One-To-Four Family Residential Real Estate Loan [Member] | ||
Loans and Leases Receivable, Gross, Total | 1,087 | 740 |
Loans Receivables Classified [Member] | Construction and Land Loans [Member] | ||
Loans and Leases Receivable, Gross, Total | 581 | 779 |
Loans Receivables Classified [Member] | Commercial Real Estate Loan [Member] | ||
Loans and Leases Receivable, Gross, Total | 5,793 | 5,888 |
Loans Receivables Classified [Member] | Commercial Loans [Member] | ||
Loans and Leases Receivable, Gross, Total | 6,360 | 2,278 |
Loans Receivables Classified [Member] | Agriculture Loan [Member] | ||
Loans and Leases Receivable, Gross, Total | 8,050 | 6,553 |
Loans Receivables Classified [Member] | Municipal Loans [Member] | ||
Loans and Leases Receivable, Gross, Total | ||
Loans Receivables Classified [Member] | Consumer Loans [Member] | ||
Loans and Leases Receivable, Gross, Total | $ 40 | $ 40 |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructurings On Financing Receivables (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)Number | Dec. 31, 2017USD ($)Number | |
Troubled debt restructurings, Number of loans | Number | 18 | 20 |
Financing receivable, modifications, recorded investment, non accrual balance | $ 5,764 | $ 6,041 |
One-To-Four Family Residential Real Estate Loan [Member] | ||
Troubled debt restructurings, Number of loans | Number | 2 | 2 |
Financing receivable, modifications, recorded investment, non accrual balance | ||
Financing receivable, modifications, recorded investment, accruing balance | $ 191 | $ 194 |
Construction and Land Loans [Member] | ||
Troubled debt restructurings, Number of loans | Number | 4 | 4 |
Financing receivable, modifications, recorded investment, non accrual balance | $ 571 | $ 575 |
Financing receivable, modifications, recorded investment, accruing balance | $ 1,199 | $ 1,252 |
Commercial Real Estate Loan [Member] | ||
Troubled debt restructurings, Number of loans | Number | 2 | 3 |
Agriculture Loan [Member] | ||
Troubled debt restructurings, Number of loans | Number | 8 | |
Financing receivable, modifications, recorded investment, non accrual balance | $ 776 | $ 833 |
Municipal Loans [Member] | ||
Troubled debt restructurings, Number of loans | Number | 2 | 2 |
Financing receivable, modifications, recorded investment, non accrual balance | ||
Financing receivable, modifications, recorded investment, accruing balance | 126 | 140 |
Commercial Real Estate Loans [Member] | ||
Financing receivable, modifications, recorded investment, non accrual balance | 45 | |
Financing receivable, modifications, recorded investment, accruing balance | 2,128 | $ 2,133 |
Agriculture Loans [Member] | ||
Troubled debt restructurings, Number of loans | Number | 9 | |
Financing receivable, modifications, recorded investment, non accrual balance | 444 | $ 471 |
Financing receivable, modifications, recorded investment, accruing balance | ||
TDR [Member] | ||
Financing receivable, modifications, recorded investment, non accrual balance | 1,015 | 1,091 |
Financing receivable, modifications, recorded investment, accruing balance | $ 3,644 | $ 3,719 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Weighted Average [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Assumption for fair value of interests continued to be held by transferor servicing assets or liabilities weighted average default rate | 1.30% | 2.26% | |
Mortgage Loans Serviced [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Escrow deposit | $ 7,800 | $ 4,400 | |
Interest and fee income, other loans | 336 | $ 319 | |
Servicing asset at fair value, amount | $ 6,100 | $ 5,600 | |
Mortgage Loans Serviced [Member] | Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, discount rate | 9.00% | 9.50% | |
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, prepayment speed | 6.00% | 5.23% | |
Mortgage Loans Serviced [Member] | Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, discount rate | 11.00% | 9.59% | |
Assumption for fair value of assets or liabilities that relate to transferor's continuing involvement, prepayment speed | 20.88% | 33.39% | |
Mortgage Repurchase Reserve [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Mortgage loans on real estate, write-down or reserve, amount | $ 235 | $ 235 |
Goodwill and Other Intangible41
Goodwill and Other Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | $ 8,768 | $ 8,702 |
Intangible assets, Accumulated amortization | (5,264) | (5,043) |
Intangible assets, Net carrying amount | 3,504 | 3,659 |
Core Deposit Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | 2,067 | 2,067 |
Intangible assets, Accumulated amortization | (1,435) | (1,381) |
Intangible assets, Net carrying amount | 632 | 686 |
Lease Intangible Asset [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | 350 | 350 |
Intangible assets, Accumulated amortization | (200) | (188) |
Intangible assets, Net carrying amount | 150 | 162 |
Mortgage Servicing Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | 6,351 | 6,285 |
Intangible assets, Accumulated amortization | (3,629) | (3,474) |
Intangible assets, Net carrying amount | $ 2,722 | $ 2,811 |
Goodwill and Other Intangible42
Goodwill and Other Intangible Assets - Schedule of Finite-lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 186 |
2,019 | 214 |
2,020 | 177 |
2,021 | 121 |
2,022 | 58 |
Thereafter | 26 |
Total | $ 782 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets - Schedule of Participating Mortgage Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate, face amount of mortgages | $ 529,962 | $ 527,645 |
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate, face amount of mortgages | 520,375 | 517,863 |
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member] | ||
Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate, face amount of mortgages | $ 9,587 | $ 9,782 |
Goodwill and Other Intangible44
Goodwill and Other Intangible Assets - Schedule of Servicing Asset at Amortized Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance at beginning of period | $ 2,811 | $ 2,849 |
Additions | 122 | 161 |
Amortization | (211) | (223) |
Balance at end of period | $ 2,722 | $ 2,787 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Earnings per share: | |||
Net earnings | $ 2,099 | $ 2,205 | |
Weighted average common shares outstanding - basic | [1] | 4,107,812 | 4,063,289 |
Assumed exercise of stock options | [1] | 43,170 | 83,106 |
Weighted average common shares outstanding - diluted | [1] | 4,150,982 | 4,146,395 |
Net earnings per share: Basic | [2] | $ 0.51 | $ 0.54 |
Net earnings per share: Diluted | [2] | $ 0.51 | $ 0.54 |
[1] | Share and per share values for the period ended March 31, 2017 have been adjusted to give effect to the 5% stock dividend paid during December 2017 | ||
[2] | Per share amounts for the period ended March 31, 2017 have been adjusted to give effect to the 5% stock dividend paid during December 2017. |
Repurchase Agreements (Details
Repurchase Agreements (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Customer funds | $ 12,700 | $ 13,500 |
Repurchase Agreements [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Debt instrument, collateral amount | $ 16,800 | $ 16,800 |
Repurchase Agreements - Schedul
Repurchase Agreements - Schedule of Repurchase Agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | $ 12,743 | $ 13,509 |
Overnight and Continuous [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | 12,743 | 13,509 |
Upto 30 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | ||
30 - 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | ||
Greater Than 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | ||
U.S. Federal Treasury Obligations [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | 424 | |
U.S. Federal Treasury Obligations [Member] | Overnight and Continuous [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | 424 | |
U.S. Federal Treasury Obligations [Member] | Upto 30 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | ||
U.S. Federal Treasury Obligations [Member] | 30 - 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | ||
U.S. Federal Treasury Obligations [Member] | Greater Than 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | ||
US Federal Agency Obligations [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | 4,618 | 5,147 |
US Federal Agency Obligations [Member] | Overnight and Continuous [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | 4,618 | 5,147 |
US Federal Agency Obligations [Member] | Upto 30 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | ||
US Federal Agency Obligations [Member] | 30 - 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | ||
US Federal Agency Obligations [Member] | Greater Than 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | ||
Agency Mortgage-backed Securities [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | 7,701 | 8,362 |
Agency Mortgage-backed Securities [Member] | Overnight and Continuous [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | 7,701 | 8,362 |
Agency Mortgage-backed Securities [Member] | Upto 30 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | ||
Agency Mortgage-backed Securities [Member] | 30 - 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | ||
Agency Mortgage-backed Securities [Member] | Greater Than 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets Sold under Agreements to Repurchase, Carrying Amount |
Revenue from Contracts with C48
Revenue from Contracts with Customers - Schedule of Revenue from Contracts with Customers Within Non-interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Revenue from Contract with Customer [Abstract] | |||
Service charges on deposits overdraft fees | $ 797 | $ 854 | |
Service charges on deposits other | 138 | 145 | |
Interchange income | 442 | 361 | |
Loan servicing fees | [1] | 336 | 319 |
Office lease income | [1] | 152 | 150 |
Gains on sales of loans | [1] | 1,161 | 1,389 |
Bank owned life insurance income | [1] | 159 | 117 |
Gains on sales of investment securities | [1] | 35 | 147 |
Gains (losses) on sales of real estate owned | 1 | (15) | |
Other | 180 | 174 | |
Total non-interest income | $ 3,401 | $ 3,641 | |
[1] | Not within the scope of ASC 606. |
Fair Value of Financial Instr49
Fair Value of Financial Instruments and Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Fair Value Disclosures [Abstract] | |||
Impaired financing receivable, recorded investment, total | $ 9,408 | $ 9,760 | |
Impaired financing receivable, related allowance | $ 879 | $ 642 |
Fair Value of Financial Instr50
Fair Value of Financial Instruments and Fair Value Measurements - Schedule of Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 13,042 | $ 16,584 | $ 20,062 | $ 19,996 |
Investment securities available for sale | 398,102 | 387,983 | ||
Common stocks | 7 | |||
Bank stocks, at cost | 5,457 | 5,423 | ||
Loans, net | 436,179 | 433,743 | ||
Loans held for sale | 6,287 | 6,535 | ||
Derivative financial instruments | 794 | 395 | ||
Accrued interest receivable | 4,233 | 4,409 | ||
Non-maturity deposits | (641,849) | (642,281) | ||
Time deposits | (127,712) | (123,277) | ||
FHLB borrowings | (39,747) | (31,600) | ||
Subordinated debentures | (21,534) | (21,484) | ||
Other borrowings | (12,743) | (13,509) | ||
Accrued interest payable | (258) | (274) | ||
Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 13,042 | 16,584 | ||
Investment securities available for sale | 398,102 | 387,983 | ||
Common stocks | 7 | |||
Bank stocks, at cost | ||||
Loans, net | 440,680 | 436,910 | ||
Loans held for sale | 6,287 | 6,535 | ||
Derivative financial instruments | 794 | 395 | ||
Accrued interest receivable | 4,233 | 4,409 | ||
Non-maturity deposits | (641,849) | (642,281) | ||
Time deposits | (125,388) | (121,298) | ||
FHLB borrowings | (39,777) | (31,706) | ||
Subordinated debentures | (19,459) | (19,134) | ||
Other borrowings | (12,743) | (13,509) | ||
Accrued interest payable | (258) | (274) | ||
Level 1 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 13,042 | 16,584 | ||
Investment securities available for sale | 1,961 | 1,998 | ||
Common stocks | 7 | |||
Bank stocks, at cost | ||||
Loans, net | ||||
Loans held for sale | ||||
Derivative financial instruments | ||||
Accrued interest receivable | 10 | 20 | ||
Non-maturity deposits | (641,849) | (642,281) | ||
Time deposits | ||||
FHLB borrowings | ||||
Subordinated debentures | ||||
Other borrowings | ||||
Accrued interest payable | ||||
Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | ||||
Investment securities available for sale | 396,141 | 385,985 | ||
Common stocks | ||||
Bank stocks, at cost | ||||
Loans, net | ||||
Loans held for sale | 6,287 | 6,535 | ||
Derivative financial instruments | 794 | 395 | ||
Accrued interest receivable | 2,074 | 2,234 | ||
Non-maturity deposits | ||||
Time deposits | (125,388) | (121,298) | ||
FHLB borrowings | (39,777) | (31,706) | ||
Subordinated debentures | (19,459) | (19,134) | ||
Other borrowings | (12,743) | (13,509) | ||
Accrued interest payable | (258) | (274) | ||
Level 3 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | ||||
Investment securities available for sale | ||||
Common stocks | ||||
Bank stocks, at cost | ||||
Loans, net | 440,680 | 436,910 | ||
Loans held for sale | ||||
Derivative financial instruments | ||||
Accrued interest receivable | 2,149 | 2,155 | ||
Non-maturity deposits | ||||
Time deposits | ||||
FHLB borrowings | ||||
Subordinated debentures | ||||
Other borrowings | ||||
Accrued interest payable |
Fair Value of Financial Instr51
Fair Value of Financial Instruments and Fair Value Measurements - Schedule of Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | $ 398,102 | $ 387,983 |
Loans held for Sale | 6,287 | 6,535 |
Derivative financial instruments | 794 | 395 |
Municipal Obligations, Tax Exempt [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 180,466 | 184,738 |
Municipal Obligations, Taxable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 54,541 | 57,976 |
Agency Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 137,704 | 117,555 |
Certificates of Deposit [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 8,985 | 9,224 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans held for Sale | 6,287 | 6,535 |
Derivative financial instruments | 794 | 395 |
Fair Value, Measurements, Recurring [Member] | US Federal Agency Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 14,445 | 16,492 |
Fair Value, Measurements, Recurring [Member] | Municipal Obligations, Tax Exempt [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 180,466 | 184,738 |
Fair Value, Measurements, Recurring [Member] | Municipal Obligations, Taxable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 54,541 | 57,976 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 137,704 | |
Fair Value, Measurements, Recurring [Member] | Agency Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 117,555 | |
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 8,985 | 9,224 |
Fair Value, Measurements, Recurring [Member] | Common Stocks [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 7 | 8 |
Level 1 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 1,961 | 1,998 |
Derivative financial instruments | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans held for Sale | ||
Derivative financial instruments | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | US Federal Agency Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Municipal Obligations, Tax Exempt [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Municipal Obligations, Taxable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Agency Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Common Stocks [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 7 | 8 |
Level 2 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 396,141 | 385,985 |
Derivative financial instruments | 794 | 395 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans held for Sale | 6,287 | 6,535 |
Derivative financial instruments | 794 | 395 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Federal Agency Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 14,445 | 16,492 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Municipal Obligations, Tax Exempt [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 180,466 | 184,738 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Municipal Obligations, Taxable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 54,541 | 57,976 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 137,704 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Agency Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 117,555 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 8,985 | 9,224 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Common Stocks [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Derivative financial instruments | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Loans held for Sale | ||
Derivative financial instruments | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | US Federal Agency Obligations [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Municipal Obligations, Tax Exempt [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Municipal Obligations, Taxable [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Agency Mortgage-backed Securities [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Common Stocks [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 1,961 | 1,990 |
US Treasury Securities [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | 1,961 | 1,990 |
US Treasury Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
US Treasury Securities [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Investment securities available for sale |
Fair Value of Financial Instr52
Fair Value of Financial Instruments and Fair Value Measurements - Schedule of Fair Value Contractual Balance and Gain Loss on Loans Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Aggregate fair value | $ 6,287 | $ 6,535 |
Contractual balance | 6,271 | 6,420 |
Gain | $ 16 | $ 115 |
Fair Value of Financial Instr53
Fair Value of Financial Instruments and Fair Value Measurements - Schedule of Gains and Losses from Changes in Fair Value of Loans Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Interest income | $ 48 | $ 45 |
Change in fair value | (99) | 109 |
Total change in fair value | $ (51) | $ 154 |
Fair Value of Financial Instr54
Fair Value of Financial Instruments and Fair Value Measurements - Schedule of Fair Value, Assets and Liabilities Measured On Nonrecurring Basis, Valuation Techniques (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
One-To-Four Family Residential Real Estate Loan [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | $ 189 | $ 171 |
Total (losses)/gains on impaired loans fair value disclosure | (11) | (73) |
One-To-Four Family Residential Real Estate Loan [Member] | Level 1 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
One-To-Four Family Residential Real Estate Loan [Member] | Level 2 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
One-To-Four Family Residential Real Estate Loan [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 189 | 171 |
Construction and Land Loan [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 1,340 | 1,499 |
Total (losses)/gains on impaired loans fair value disclosure | 44 | (102) |
Construction and Land Loan [Member] | Level 1 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Construction and Land Loan [Member] | Level 2 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Construction and Land Loan [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 1,340 | 1,499 |
Commercial Real Estate Loan [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 23 | 33 |
Total (losses)/gains on impaired loans fair value disclosure | 1 | 12 |
Commercial Real Estate Loan [Member] | Level 1 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Commercial Real Estate Loan [Member] | Level 2 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Commercial Real Estate Loan [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 23 | 33 |
Commercial Loan [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 1,332 | 1,600 |
Total (losses)/gains on impaired loans fair value disclosure | (294) | (304) |
Commercial Loan [Member] | Level 1 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Commercial Loan [Member] | Level 2 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Commercial Loan [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 1,332 | 1,600 |
Agriculture Loan [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 188 | 264 |
Total (losses)/gains on impaired loans fair value disclosure | (47) | 65 |
Agriculture Loan [Member] | Level 1 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Agriculture Loan [Member] | Level 2 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Agriculture Loan [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 188 | 264 |
Consumer Loan [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 6 | |
Total (losses)/gains on impaired loans fair value disclosure | (1) | |
Consumer Loan [Member] | Level 1 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Consumer Loan [Member] | Level 2 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Consumer Loan [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | $ 6 | |
Real Estate Owned One-To-Four Family Residential Real Estate Loan [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 325 | |
Total (losses)/gains on impaired loans fair value disclosure | (68) | |
Real Estate Owned One-To-Four Family Residential Real Estate Loan [Member] | Level 1 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Real Estate Owned One-To-Four Family Residential Real Estate Loan [Member] | Level 2 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Real Estate Owned One-To-Four Family Residential Real Estate Loan [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 325 | |
Real Estate Owned Commercial Real Estate Loan [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | 85 | |
Total (losses)/gains on impaired loans fair value disclosure | (50) | |
Real Estate Owned Commercial Real Estate Loan [Member] | Level 1 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Real Estate Owned Commercial Real Estate Loan [Member] | Level 2 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | ||
Real Estate Owned Commercial Real Estate Loan [Member] | Level 3 [Member] | ||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Impaired loans | $ 85 |
Fair Value of Financial Instr55
Fair Value of Financial Instruments and Fair Value Measurements - Schedule of Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Commercial Loan [Member] | ||
Impaired Loans Fair Value Disclosure | $ 1,332 | |
Fair Value Measurements, Valuation Techniques | Sales comparison | |
Fair Value Measurements, Unobservable inputs | Adjustment to comparable sales | |
Agriculture Loan [Member] | ||
Impaired Loans Fair Value Disclosure | $ 188 | |
Agriculture Loan [Member] | ||
Impaired Loans Fair Value Disclosure | $ 264 | |
Fair Value Measurements, Valuation Techniques | Sales comparison | Sales comparison |
Fair Value Measurements, Unobservable inputs | Adjustment to appraised value | Adjustment to appraised value |
Consumer Loan [Member] | ||
Impaired Loans Fair Value Disclosure | $ 6 | |
Fair Value Measurements, Valuation Techniques | Sales comparison | |
Fair Value Measurements, Unobservable inputs | Adjustment to appraised value | |
Commercial Loan [Member] | ||
Impaired Loans Fair Value Disclosure | $ 1,600 | |
Fair Value Measurements, Valuation Techniques | Sales comparison | |
Fair Value Measurements, Unobservable inputs | Adjustment to comparable sales | |
Minimum [Member] | Commercial Loan [Member] | ||
Fair Value Measurements Range | 15.00% | |
Minimum [Member] | Agriculture Loan [Member] | ||
Fair Value Measurements Range | 0.00% | 0.00% |
Minimum [Member] | Consumer Loan [Member] | ||
Fair Value Measurements Range | 0.00% | |
Minimum [Member] | Commercial Loan [Member] | ||
Fair Value Measurements Range | 15.00% | |
Maximum [Member] | Commercial Loan [Member] | ||
Fair Value Measurements Range | 50.00% | |
Maximum [Member] | Agriculture Loan [Member] | ||
Fair Value Measurements Range | 25.00% | 50.00% |
Maximum [Member] | Consumer Loan [Member] | ||
Fair Value Measurements Range | 100.00% | |
Maximum [Member] | Commercial Loan [Member] | ||
Fair Value Measurements Range | 50.00% | |
One-To-Four Family Residential Real Estate Loan [Member] | ||
Impaired Loans Fair Value Disclosure | $ 189 | $ 171 |
Real Estate Owned Fair Value Disclosure | $ 325 | |
Fair Value Measurements, Valuation Techniques | Sales comparison | Sales comparison |
Fair Value Measurements, Unobservable inputs | Adjustment to appraised value | Adjustment to appraised value |
One-To-Four Family Residential Real Estate Loan [Member] | Minimum [Member] | ||
Fair Value Measurements Range | 7.00% | 16.00% |
One-To-Four Family Residential Real Estate Loan [Member] | Maximum [Member] | ||
Fair Value Measurements Range | 50.00% | 50.00% |
Construction and Land Loan [Member] | ||
Impaired Loans Fair Value Disclosure | $ 1,340 | $ 1,499 |
Fair Value Measurements, Valuation Techniques | Sales comparison | Sales comparison |
Fair Value Measurements, Unobservable inputs | Adjustment to appraised value | Adjustment to appraised value |
Construction and Land Loan [Member] | Minimum [Member] | ||
Fair Value Measurements Range | 0.00% | 0.00% |
Construction and Land Loan [Member] | Maximum [Member] | ||
Fair Value Measurements Range | 35.00% | 25.00% |
Commercial Real Estate Loan [Member] | ||
Impaired Loans Fair Value Disclosure | $ 23 | $ 33 |
Real Estate Owned Fair Value Disclosure | $ 85 | |
Fair Value Measurements, Valuation Techniques | Sales comparison | Sales comparison |
Fair Value Measurements, Unobservable inputs | Adjustment to appraised value | Adjustment to appraised value |
Commercial Real Estate Loan [Member] | Minimum [Member] | ||
Fair Value Measurements Range | 0.00% | 0.00% |
Commercial Real Estate Loan [Member] | Maximum [Member] | ||
Fair Value Measurements Range | 20.00% | 91.00% |
Regulatory Capital Requiremen56
Regulatory Capital Requirements (Details Narrative) - USD ($) $ in Thousands | Jan. 02, 2018 | Jan. 02, 2017 | Jan. 02, 2016 | Dec. 31, 2017 | Mar. 31, 2018 |
Regulatory Capital Requirements [Line Items] | |||||
Assets, total | $ 929,454 | $ 938,994 | |||
Common equity tier one risk based capital required for capital adequacy to risk weighted assets | 4.50% | ||||
Tier one risk based capital required for capital adequacy to risk weighted assets | 6.00% | ||||
Capital required for capital adequacy to risk weighted assets | 8.00% | ||||
Tier one leverage capital required for capital adequacy to average assets | 4.00% | ||||
Small Bank Holding Companies [Member] | |||||
Regulatory Capital Requirements [Line Items] | |||||
Assets, total | $ 1,000,000,000 | ||||
Capital Conservation Buffer [Member] | |||||
Regulatory Capital Requirements [Line Items] | |||||
Tier one capital conversation buffer | 1.875% | 1.25% | 0.625% | ||
Capital Conservation Buffer [Member] | January 1, 2019 [Member] | |||||
Regulatory Capital Requirements [Line Items] | |||||
Tier one capital conversation buffer | 2.50% |
Regulatory Capital Requiremen57
Regulatory Capital Requirements - Schedule of Compliance with Regulatory Capital Requirements for Mortgage Companies (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Regulatory Capital Requirements [Line Items] | |||
Leverage - For capital adequacy purposes Ratio | 4.00% | ||
Common Equity Tier 1 Capital - For capital adequacy purposes Ratio | 4.50% | ||
Tier 1 Capital - For capital adequacy purposes Ratio | 6.00% | ||
Total Risk Based Capital - For capital adequacy purposes Ratio | 8.00% | ||
Companys Regulatory Capital Requirements [Member] | |||
Regulatory Capital Requirements [Line Items] | |||
Leverage - Actual Amount | $ 92,606 | $ 88,605 | |
Common Equity Tier 1 Capital - Actual Amount | 71,723 | 68,269 | |
Tier 1 Capital - Actual Amount | 92,606 | 88,605 | |
Total Risk Based Capital - Actual Amount | $ 98,390 | $ 94,208 | |
Leverage - Actual Ratio | 10.15% | 9.80% | |
Common Equity Tier 1 Capital - Actual Ratio | 13.21% | 12.83% | |
Tier 1 Capital - Actual Ratio | 17.06% | 16.65% | |
Total Risk Based Capital - Actual Ratio | 18.13% | 17.71% | |
Leverage - For capital adequacy purposes Amount | $ 36,495 | $ 36,180 | |
Common Equity Tier 1 Capital - For capital adequacy purposes Amount | 34,602 | 30,590 | |
Tier 1 Capital - For capital adequacy purposes Amount | 42,743 | 38,571 | |
Total Risk Based Capital - For capital adequacy purposes Amount | $ 53,599 | $ 49,211 | |
Leverage - For capital adequacy purposes Ratio | [1] | 4.00% | 4.00% |
Common Equity Tier 1 Capital - For capital adequacy purposes Ratio | [1] | 6.40% | 5.80% |
Tier 1 Capital - For capital adequacy purposes Ratio | [1] | 7.90% | 7.30% |
Total Risk Based Capital - For capital adequacy purposes Ratio | [1] | 9.90% | 9.30% |
[1] | The required ratios for capital adequacy purposes include a capital conservation buffer of 1.875% for March 31, 2018 and 1.25% for December 31, 2017. |
Regulatory Capital Requiremen58
Regulatory Capital Requirements - Schedule of Compliance with Regulatory Capital Requirements for Mortgage Companies (Details) (Parenthetical) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Companys Regulatory Capital Requirements [Member] | ||
Tier one capital conversation buffer | 1.875% | 1.25% |
Regulatory Capital Requiremen59
Regulatory Capital Requirements - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | |
Regulatory Capital Requirements [Line Items] | |||
Leverage - For capital adequacy purposes Ratio | 4.00% | ||
Common Equity Tier 1 Capital - For capital adequacy purposes Ratio | 4.50% | ||
Tier 1 Capital - For capital adequacy purposes Ratio | 6.00% | ||
Total Risk Based Capital - For capital adequacy purposes Ratio | 8.00% | ||
Banks Regulatory Capital Requirements [Member] | |||
Regulatory Capital Requirements [Line Items] | |||
Leverage - Actual Amount | $ 91,084 | $ 86,808 | |
Common Equity Tier 1 Capital - Actual Amount | 91,084 | 86,808 | |
Tier 1 Capital - Actual Amount | 91,084 | 86,808 | |
Total Risk Based Capital - Actual Amount | $ 96,868 | $ 92,407 | |
Leverage - Actual Ratio | 10.01% | 9.62% | |
Common Equity Tier 1 Capital - Actual Ratio | 16.71% | 16.35% | |
Tier 1 Capital - Actual Ratio | 16.71% | 16.35% | |
Total Risk Based Capital - Actual Ratio | 17.77% | 17.40% | |
Leverage - For capital adequacy purposes Amount | $ 36,401 | $ 36,097 | |
Common Equity Tier 1 Capital - For capital adequacy purposes Amount | 34,755 | 30,529 | |
Tier 1 Capital - For capital adequacy purposes Amount | 42,933 | 38,493 | |
Total Risk Based Capital - For capital adequacy purposes Amount | $ 53,836 | $ 49,112 | |
Leverage - For capital adequacy purposes Ratio | [1] | 4.00% | 4.00% |
Common Equity Tier 1 Capital - For capital adequacy purposes Ratio | [1] | 6.40% | 5.80% |
Tier 1 Capital - For capital adequacy purposes Ratio | [1] | 7.90% | 7.30% |
Total Risk Based Capital - For capital adequacy purposes Ratio | [1] | 9.90% | 9.30% |
Leverage - To be well-capitalized under prompt corrective action provisions Amount | $ 45,502 | $ 45,122 | |
Common Equity Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Amount | 35,437 | 34,511 | |
Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Amount | 43,614 | 42,475 | |
Total Risk Based Capital - To be well-capitalized under prompt corrective action provisions Amount | $ 54,518 | $ 53,094 | |
Leverage - To be well-capitalized under prompt corrective action provisions Ratio | 5.00% | 5.00% | |
Common Equity Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Ratio | 6.50% | 6.50% | |
Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Ratio | 8.00% | 8.00% | |
Total Risk Based Capital - To be well-capitalized under prompt corrective action provisions Ratio | 10.00% | 10.00% | |
[1] | The required ratios for capital adequacy purposes include a capital conservation buffer of 1.875% for March 31, 2018 and 1.25% for December 31, 2017. |
Regulatory Capital Requiremen60
Regulatory Capital Requirements - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) (Parenthetical) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Banks Regulatory Capital Requirements [Member] | ||
Tier one capital conversation buffer | 1.875% | 1.25% |