Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 13, 2019 | Jun. 30, 2018 | |
Document And Entity Information | |||
Entity Registrant Name | LANDMARK BANCORP INC | ||
Entity Central Index Key | 0001141688 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity a Well-known Seasoned Issuer | No | ||
Entity a Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 86,900 | ||
Entity Common Stock, Shares Outstanding | 4,372,116 | ||
Trading Symbol | LARK | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2018 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 19,114 | $ 16,584 |
Investment securities available-for-sale, at fair value | 388,345 | 387,983 |
Bank stocks, at cost | 4,776 | 5,423 |
Loans, net of allowance for loans losses of $5,765 and $5,459 | 489,373 | 433,743 |
Loans held for sale, at fair value | 4,743 | 6,535 |
Premises and equipment, net | 21,127 | 20,824 |
Bank owned life insurance | 24,342 | 23,698 |
Goodwill | 17,532 | 17,532 |
Other intangible assets, net | 3,091 | 3,659 |
Real estate owned, net | 35 | 436 |
Accrued interest and other assets | 13,306 | 13,037 |
Total assets | 985,784 | 929,454 |
Deposits: | ||
Non-interest bearing demand | 168,273 | 160,496 |
Money market and checking | 393,460 | 388,311 |
Savings | 94,895 | 93,474 |
Time | 167,020 | 123,277 |
Total deposits | 823,648 | 765,558 |
Federal Home Loan Bank borrowings | 20,000 | 31,600 |
Subordinated debentures | 21,651 | 21,484 |
Other borrowings | 15,246 | 13,509 |
Accrued interest and other liabilities | 13,338 | 9,681 |
Total liabilities | 893,883 | 841,832 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par, 200,000 shares authorized; none issued | ||
Common stock, $0.01 par, 7,500,000 shares authorized; 4,372,116 and 4,285,742 shares issued and outstanding at December 31, 2018 and 2017, respectively | 44 | 41 |
Additional paid-in capital | 63,775 | 57,772 |
Retained earnings | 32,073 | 30,214 |
Accumulated other comprehensive loss | (3,991) | (405) |
Total stockholders' equity | 91,901 | 87,622 |
Total liabilities and stockholders' equity | $ 985,784 | $ 929,454 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for loans losses | $ 5,765 | $ 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 | 4,372,116 | 4,285,742 |
Common stock, shares outstanding | 4,372,116 | 4,285,742 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Loans: | ||||||
Taxable | $ 23,642 | $ 20,952 | $ 21,010 | |||
Tax-exempt | 244 | 134 | 244 | |||
Investment securities: | ||||||
Taxable | 5,299 | 4,686 | 4,551 | |||
Tax-exempt | 3,968 | 3,928 | 3,425 | |||
Total interest income | 33,153 | 29,700 | 29,230 | |||
Interest expense: | ||||||
Deposits | 3,056 | 1,569 | 1,134 | |||
Subordinated debentures | 1,079 | 898 | 787 | |||
Borrowings | 1,230 | 1,118 | 1,270 | |||
Total interest expense | 5,365 | 3,585 | 3,191 | |||
Net interest income | 27,788 | 26,115 | 26,039 | |||
Provision for loan losses | 1,400 | 450 | 500 | |||
Net interest income after provision for loan losses | 26,388 | 25,665 | 25,539 | |||
Non-interest income: | ||||||
Fees and service charges | 7,289 | 7,358 | 7,268 | |||
Gains on sales of loans, net | 5,023 | [1] | 5,390 | [1] | 5,476 | |
Increase in cash surrender value of bank owned life insurance | 644 | [1] | 912 | [1] | 508 | |
Gains on sales of investment securities, net | 20 | 498 | 558 | |||
Other | 2,595 | 1,126 | 1,040 | |||
Total non-interest income | 15,571 | 15,284 | 14,850 | |||
Non-interest expense: | ||||||
Compensation and benefits | 16,042 | 15,141 | 15,313 | |||
Occupancy and equipment | 4,333 | 4,283 | 4,334 | |||
Data processing | 1,525 | 1,402 | 1,419 | |||
Amortization of intangibles | 1,111 | 1,258 | 1,397 | |||
Professional fees | 1,677 | 1,695 | 1,081 | |||
Advertising | 589 | 589 | 573 | |||
Federal deposit insurance premiums | 291 | 292 | 369 | |||
Foreclosure and real estate owned expense | 100 | 238 | 258 | |||
Deposit-related loss | 8,082 | |||||
Other | 4,697 | 4,497 | 4,370 | |||
Total non-interest expense | 30,365 | 37,477 | 29,114 | |||
Earnings before income taxes | 11,594 | 3,472 | 11,275 | |||
Income tax expense (benefit) | 1,168 | (897) | 2,314 | |||
Net earnings | $ 10,426 | $ 4,369 | $ 8,961 | |||
Earnings per share: | ||||||
Basic | [2] | $ 2.40 | $ 1.02 | $ 2.13 | ||
Diluted | [2] | $ 2.39 | $ 1.01 | $ 2.10 | ||
[1] | Not within the scope of ASC 606. | |||||
[2] | All per share amounts have been adjusted to give effect to the 5% stock dividends paid during December 2018, 2017 and 2016. |
Consolidated Statements of Ea_2
Consolidated Statements of Earnings (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Stock dividend, percentage | 5.00% | 5.00% | 5.00% |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 10,426 | $ 4,369 | $ 8,961 |
Net unrealized holding (losses) gains on available-for-sale securities | (4,721) | 2,131 | (5,021) |
Less reclassification adjustment on gains included in earnings | (20) | (498) | (558) |
Net unrealized (losses) gains | (4,741) | 1,633 | (5,579) |
Income tax effect on net gains included in earnings | 5 | 184 | 206 |
Income tax effect on net unrealized holding (losses) gains | 1,157 | (807) | 1,850 |
Other comprehensive (loss) income | (3,579) | 1,010 | (3,523) |
Total comprehensive income | $ 6,847 | $ 5,379 | $ 5,438 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | |
Balance at Dec. 31, 2015 | $ 35 | $ 45,372 | $ 32,988 | $ 2,175 | $ 80,570 | |
Net earnings | 8,961 | 8,961 | ||||
Other comprehensive income loss | (3,523) | (3,523) | ||||
Dividends paid | [1] | (2,912) | (2,912) | |||
Stock-based compensation | 59 | 59 | ||||
Exercise of stock options | 1 | 1,795 | 1,796 | |||
Stock dividend | 2 | 4,742 | (4,744) | |||
Balance at Dec. 31, 2016 | 38 | 51,968 | 34,293 | (1,348) | 84,951 | |
Net earnings | 4,369 | 4,369 | ||||
Other comprehensive income loss | 1,010 | 1,010 | ||||
Dividends paid | [1] | (3,108) | (3,108) | |||
Stock-based compensation | 172 | 172 | ||||
Exercise of stock options | 1 | 227 | 228 | |||
Stock dividend | 2 | 5,405 | (5,407) | |||
Tax reclassification from early adoption of ASU 2018-02 | 67 | (67) | ||||
Balance at Dec. 31, 2017 | 41 | 57,772 | 30,214 | (405) | 87,622 | |
Net earnings | 10,426 | 10,426 | ||||
Other comprehensive income loss | (3,579) | (3,579) | ||||
Dividends paid | [1] | (3,325) | (3,325) | |||
Stock-based compensation | 223 | 223 | ||||
Exercise of stock options | 1 | 533 | 534 | |||
Stock dividend | 2 | 5,427 | (5,249) | |||
Adjustment of common stock investments | 7 | (7) | ||||
Balance at Dec. 31, 2018 | $ 44 | $ 63,775 | $ 32,073 | $ (3,991) | $ 91,901 | |
[1] | Dividends per share have been adjusted to give effect to the 5% stock dividends paid during December 2018, 2017 and 2016. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividend, per share | $ 0.76 | $ 0.73 | $ 0.66 |
Excise of stock option, shares | 72,130 | 17,540 | 141,103 |
Stock dividend, percentage | 5.00% | 5.00% | 5.00% |
Stock dividends | 207,794 | 193,306 | 183,538 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Cash flows from operating activities: | |||||
Net earnings | $ 10,426 | $ 4,369 | $ 8,961 | ||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||
Provision for loan losses | 1,400 | 450 | 500 | ||
Valuation allowance on real estate owned | 12 | 210 | 34 | ||
Amortization of investment security premiums, net | 1,908 | 1,888 | 1,677 | ||
Amortization of purchase accounting adjustment on loans | (211) | (188) | (143) | ||
Amortization of purchase accounting adjustment on subordinated debentures | 167 | 200 | 200 | ||
Amortization of intangibles | 1,111 | 1,258 | 1,397 | ||
Depreciation | 1,005 | 1,030 | 1,144 | ||
Increase in cash surrender value of bank owned life insurance | (644) | [1] | (912) | [1] | (508) |
Stock-based compensation | 223 | 172 | 59 | ||
Deferred income taxes | 969 | 487 | 919 | ||
Net gain on investment securities | (20) | (498) | (558) | ||
Net loss (gain) on sales of premises and equipment and foreclosed assets | 58 | (17) | 89 | ||
Net gains on sales of loans | (5,023) | [1] | (5,390) | [1] | (5,476) |
Proceeds from sale of loans | 167,544 | 173,719 | 222,857 | ||
Origination of loans held for sale | (160,729) | (169,347) | (208,433) | ||
Changes in assets and liabilities: | |||||
Accrued interest and other assets | (470) | (2,013) | (2,398) | ||
Accrued interest, expenses and other liabilities | 3,657 | (2,362) | (1,304) | ||
Net cash provided by operating activities | 21,383 | 3,056 | 19,017 | ||
Cash flows from investing activities: | |||||
Net increase in loans | (57,060) | (13,785) | (2,159) | ||
Maturities and prepayments of investment securities | 54,617 | 59,198 | 41,837 | ||
Purchases of investment securities | (82,742) | (75,186) | (94,060) | ||
Proceeds from sale of investment securities | 21,126 | 13,810 | 14,326 | ||
Proceeds from sales of common stock investments | 7 | ||||
Redemption of bank stocks | 10,380 | 9,099 | 4,686 | ||
Purchase of bank stocks | (9,733) | (9,223) | (5,488) | ||
Proceeds from sales of premises and equipment and foreclosed assets | 424 | 856 | 813 | ||
Proceeds from bank owned life insurance | 528 | 358 | |||
Purchase of bank owned life insurance | (5,000) | ||||
Purchases of premises and equipment, net | (1,308) | (1,449) | (596) | ||
Net cash used in investing activities | (64,289) | (21,152) | (40,283) | ||
Cash flows from financing activities: | |||||
Net increase in deposits | 58,090 | 24,038 | 26,800 | ||
Federal Home Loan Bank advance borrowings | 635,303 | 622,241 | 417,739 | ||
Federal Home Loan Bank advance repayments | (646,903) | (629,741) | (416,239) | ||
Proceeds from other borrowings | 1,737 | 1,126 | 509 | ||
Repayments on other borrowings | (100) | ||||
Proceeds from exercise of stock options | 534 | 228 | 1,796 | ||
Payment of dividends | (3,325) | (3,108) | (2,912) | ||
Net cash provided by financing activities | 45,436 | 14,684 | 27,693 | ||
Net increase (decrease) in cash and cash equivalents | 2,530 | (3,412) | 6,427 | ||
Cash and cash equivalents at beginning of year | 16,584 | 19,996 | 13,569 | ||
Cash and cash equivalents at end of year | 19,114 | 16,584 | 19,996 | ||
Supplemental disclosure of cash flow information: | |||||
Net refund received during the year for income taxes | (1,364) | 850 | 945 | ||
Cash paid during the year for interest | 5,030 | 3,380 | 3,016 | ||
Supplemental schedule of noncash investing and financing activities: | |||||
Transfer of loans to real estate owned | 96 | 206 | 1,212 | ||
Investment securities purchases not yet settled | $ 926 | ||||
[1] | Not within the scope of ASC 606. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Principles of Consolidation. Use of Estimates. Business Combinations. Reserve Requirements. Cash Flows. Investment Securities. The Company performs quarterly reviews of the investment portfolio to evaluate investment for other-than-temporary impairment. The initial review begins with all securities in an unrealized loss position. The Company’s assessment of other-than-temporary impairment is based on its judgment of the specific facts and circumstances impacting each individual security at the time such assessments are made. The Company reviews and considers all factual information, including expected cash flows, the structure of the security, the credit quality of the underlying assets and the current and anticipated market conditions. Any credit-related impairment on debt securities is recorded through a charge to earnings. Impairment related to other factors is recognized in other comprehensive income. However, if the Company intends to sell or it is more likely than not that it will be required to sell a security in an unrealized loss position before recovery of its amortized costs basis, the entire impairment is recorded through a charge to earnings. Common Stocks. Bank Stocks. Acquired Loans. Loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining if a loan is impaired include payment status, probability of collecting scheduled principal and interest payments when due and value of collateral for collateral dependent loans. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. In addition, the Company classifies troubled debt restructurings (“TDR”) as impaired loans. A loan is classified as a TDR if the Company modifies a loan with any concessions, as defined by accounting guidance, to a borrower experiencing financial difficulty. The allowance recorded on impaired loans is measured on a loan-by-loan basis for commercial, commercial real estate, agriculture and construction and land loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of homogeneous loans with smaller individual balances are collectively evaluated for impairment. Accordingly, the Company generally does not separately identify individual consumer and residential loans for impairment disclosures. The accrual of interest on non-performing loans is discontinued at the time the loan is ninety days delinquent, unless the credit is well-secured and in process of collection. Loans are placed on non-accrual or are charged off at an earlier date if collection of the principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are evaluated individually and are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses. In addition to the general component the allowance consists of a specific component. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered TDRs and classified as impaired. Loans Held for Sale Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of mortgage loans sold is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. Mortgage Servicing Rights. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are included in amortization expense on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Transfers of Financial Assets. Mortgage Loan Repurchase Reserve. Premises and Equipment. Bank Owned Life Insurance Goodwill and Intangible Assets. Intangible assets include core deposit intangibles, lease intangibles and mortgage servicing rights. Core deposit intangible assets are amortized over their estimated useful life of ten years on an accelerated basis. Lease intangible assets are amortized over the life of the lease. When facts and circumstances indicate potential impairment, the Company will evaluate the recoverability of the intangible asset’s carrying value, using estimates of undiscounted future cash flows over the remaining asset life. Any impairment loss is measured by the excess of carrying value over fair value. Income Taxes. Loan Commitments and Related Financial Instruments. Loss Contingencies. Comprehensive Income. Real Estate Owned. Stock-Based Compensation. In the fourth quarter of 2016, the Company elected to early adopt ASU 2016-09 Compensation-Stock Compensation (Topic 718). As a result of this election, the Company recognized $136,000, $103,000 and $308,000 of excess tax benefits from the exercise of stock options as a reduction in income tax expense during 2018, 2017 and 2016. Also upon early adoption of ASU 2016-09, the Company elected to change its accounting policy to account for forfeitures as they occur. The change in accounting for forfeitures did not impact the consolidated financial statements. Earnings per Share. The shares used in the calculation of basic and diluted earnings per share, which have been adjusted to give effect to the 5% common stock dividends paid by the Company in December 2018, 2017 and 2016, are shown below: Years ended December 31, (Dollars in thousands, except per share amounts) 2018 2017 2016 Net earnings available to common shareholders $ 10,426 $ 4,369 $ 8,961 Weighted average common shares outstanding - basic 4,350,671 4,268,556 4,196,949 Assumed exercise of stock options 15,151 74,172 71,996 Weighted average common shares outstanding - diluted 4,365,822 4,342,728 4,268,945 Earnings per share: Basic $ 2.40 $ 1.02 $ 2.13 Diluted $ 2.39 $ 1.01 $ 2.10 Derivative Financial Instruments. Dividend Restriction. Fair Value of Financial Instruments. |
Impact of Recent Accounting Pro
Impact of Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of Recent Accounting Pronouncements | (2) Impact of Recent Accounting Pronouncements 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 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 flow method previously utilized. Management has concluded that the requirements of this update did not have a material impact to the Company’s financial position, results of operations or cash flows. 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 was permitted. The Company has adopted ASU 2016-02 effective January 1, 2019. Management has concluded that based on the Company’s current operating leases, the adoption of ASU 2016-02 does 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 that has implemented a process to collect the data and is developing a system for the new standard. Initial calculations estimate 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. The Company has adopted ASU 2017-08 effective January 1, 2019. 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 was not material to the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law, which among other things reduced the maximum federal corporate tax rate from 35% to 21%. This ASU addresses concerns about the guidance in current GAAP that requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date. That guidance is applicable even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income (rather than in income from continuing operations). As a result of the adjustment of deferred taxes being required to be included in income from continuing operations, the tax effects of items within accumulated other comprehensive income (referred to as stranded tax effects for purposes of this ASU) do not reflect the appropriate tax rate. This ASU allows for an election to reclass between retained earnings and accumulated other comprehensive income the impact of the federal income tax rate change. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption of the amendments of this ASU is permitted. ASU 2018-02 was early adopted and the December 31, 2017 financial statements reflect the reclassification out of accumulated other comprehensive income and into retained earnings for $67,000. 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 14 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. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | (3) Investment Securities A summary of investment securities available-for-sale is as follows: As of December 31, 2018 Gross Gross Amortized unrealized unrealized Estimated (Dollars in thousands) cost gains losses fair value U. S. treasury securities $ 1,999 $ - $ (28 ) $ 1,971 U. S. federal agency obligations 10,370 32 (41 ) 10,361 Municipal obligations, tax exempt 161,529 353 (2,770 ) 159,112 Municipal obligations, taxable 53,178 180 (323 ) 53,035 Agency mortgage-backed securities 158,765 264 (2,953 ) 156,076 Certificates of deposit 7,790 - - 7,790 Total $ 393,631 $ 829 $ (6,115 ) $ 388,345 As of December 31, 2017 Gross Gross Amortized unrealized unrealized Estimated 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 $ 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 December 31, 2018 and 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 December 31, 2018 Less than 12 months 12 months or longer Total No. of Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) securities value losses value losses value losses U.S. federal treasury securities 1 $ - $ - $ 1,971 $ (28 ) $ 1,971 $ (28 ) U.S. federal agency obligations 6 145 (1 ) 7,970 (40 ) 8,115 (41 ) Municipal obligations, tax exempt 296 35,898 (367 ) 85,921 (2,403 ) 121,819 (2,770 ) Municipal obligations, taxable 86 8,293 (22 ) 28,984 (301 ) 37,277 (323 ) Agency mortgage-backed securities 101 30,030 (146 ) 96,155 (2,807 ) 126,185 (2,953 ) Total 490 $ 74,366 $ (536 ) $ 221,001 $ (5,579 ) $ 295,367 $ (6,115 ) As of December 31, 2017 Less than 12 months 12 months or longer Total No. of Fair Unrealized Fair Unrealized Fair Unrealized securities value losses value losses value losses U.S. federal 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 tables above was temporarily impaired as of December 31, 2018 and 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 the 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. The Company’s portfolio of municipal obligations consists of both tax-exempt and taxable general obligations securities issued by various municipalities. As of December 31, 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. 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. The table below 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. The amortized cost and fair value of investment securities at December 31, 2018 are as follows: Amortized Estimated (Dollars in thousands) cost fair value Due in less than one year $ 34,943 $ 34,847 Due after one year but within five years 177,050 174,149 Due after five years but within ten years 103,823 102,522 Due after ten years 77,815 76,827 Total $ 393,631 $ 388,345 Sales proceeds and gross realized gains and losses on sales of available-for-sale securities are as follows: Years ended December 31, (Dollars in thousands) 2018 2017 2016 Sales proceeds $ 21,126 $ 13,810 $ 14,326 Realized gains $ 84 $ 522 $ 573 Realized losses (64 ) (24 ) (15 ) Net realized gains $ 20 $ 498 $ 558 Securities with carrying values of $249.7 million and $232.5 million were pledged to secure public funds on deposit, repurchase agreements and as collateral for borrowings at December 31, 2018 and 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. The Company received $7,000 of proceeds from the sale of its remaining common stock investments during the year ended December 31, 2018. |
Bank Stocks
Bank Stocks | 12 Months Ended |
Dec. 31, 2018 | |
Bank Stocks | |
Bank Stocks | (4) Bank Stocks Bank stocks primarily consist of restricted investments in FHLB and Federal Reserve Bank (“FRB”) stock. The carrying value of the FHLB stock at December 31, 2018 was $2.8 million compared to $3.4 million at December 31, 2017. The carrying value of the FRB stock was $1.9 million at both December 31, 2018 and 2017. These securities are not readily marketable and are required for regulatory purposes and borrowing availability. Since there are no available market values, these securities are carried at cost. Redemption of these investments at par value is at the option of the FHLB or FRB, as applicable. Also included in Bank stocks are other miscellaneous investments in the common stock of various correspondent banks which are held for borrowing purposes and totaled $111,000 at December 31, 2018 and 2017. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | (5) Loans and Allowance for Loan Losses Loans consisted of the following: As of December 31, (Dollars in thousands) 2018 2017 One-to-four family residential real estate loans $ 136,895 $ 136,215 Construction and land loans 20,083 19,356 Commercial real estate loans 138,967 120,624 Commercial loans 74,289 54,591 Agriculture loans 96,632 83,008 Municipal loans 2,953 3,396 Consumer loans 25,428 22,046 Total gross loans 495,247 439,236 Net deferred loan costs and loans in process (109 ) (34 ) Allowance for loan losses (5,765 ) (5,459 ) Loans, net $ 489,373 $ 433,743 The following tables provide information on the Company’s allowance for loan losses by loan class and allowance methodology: Year ended December 31, 2018 (Dollars in thousands) One-to-four family residential real estate loans Construction and land loans Commercial real estate loans Commercial loans Agriculture loans Municipal loans Consumer loans Total Allowance for loan losses: Balance at January 1, 2018 $ 542 $ 181 $ 1,540 $ 1,226 $ 1,812 $ 8 $ 150 $ 5,459 Charge-offs (32 ) - - (950 ) - - (178 ) (1,160 ) Recoveries 4 - 1 22 1 2 36 66 Provision for loan losses (65 ) (13 ) 145 753 425 (3 ) 158 1,400 Balance at December 31, 2018 $ 449 $ 168 $ 1,686 $ 1,051 $ 2,238 $ 7 $ 166 $ 5,765 Allowance for loan losses: Individually evaluated for loss $ 100 $ 103 $ 67 $ 27 $ 13 $ - $ - $ 310 Collectively evaluated for loss 349 65 1,619 1,024 2,225 7 166 5,455 Total $ 449 $ 168 $ 1,686 $ 1,051 $ 2,238 $ 7 $ 166 $ 5,765 Loan balances: Individually evaluated for loss $ 623 $ 1,808 $ 3,912 $ 1,528 $ 717 $ 58 $ 45 $ 8,691 Collectively evaluated for loss 136,272 18,275 135,055 72,761 95,915 2,895 25,383 486,556 Total $ 136,895 $ 20,083 $ 138,967 $ 74,289 $ 96,632 $ 2,953 $ 25,428 $ 495,247 Year ended December 31, 2017 (Dollars in thousands) One-to-four family residential real estate Construction and land Commercial real estate Commercial loans Agriculture loans Municipal loans Consumer loans Total Allowance for loan losses: Balance at January 1, 2017 $ 504 $ 53 $ 1,777 $ 1,119 $ 1,684 $ 12 $ 195 $ 5,344 Charge-offs (37 ) - (71 ) - (45 ) - (335 ) (488 ) Recoveries 11 - - 20 1 37 84 153 Provision for loan losses 64 128 (166 ) 87 172 (41 ) 206 450 Balance at December 31, 2017 $ 542 $ 181 $ 1,540 $ 1,226 $ 1,812 $ 8 $ 150 $ 5,459 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 Year ended December 31, 2016 One-to-four family residential real estate loans Construction and land loans Commercial real estate loans Commercial loans Agriculture loans Municipal loans Consumer loans Total Allowance for loan losses: Balance at January 1, 2016 $ 925 $ 77 $ 1,740 $ 1,530 $ 1,428 $ 23 $ 199 $ 5,922 Charge-offs (14 ) - - (306 ) (375 ) - (471 ) (1,166 ) Recoveries 9 - - 34 - 6 39 88 Provision for loan losses (416 ) (24 ) 37 (139 ) 631 (17 ) 428 500 Balance at December 31, 2016 $ 504 $ 53 $ 1,777 $ 1,119 $ 1,684 $ 12 $ 195 $ 5,344 Allowance for loan losses: Individually evaluated for loss $ - $ - $ 81 $ 87 $ 89 $ - $ 17 $ 274 Collectively evaluated for loss 504 53 1,696 1,032 1,595 12 178 5,070 Total $ 504 $ 53 $ 1,777 $ 1,119 $ 1,684 $ 12 $ 195 $ 5,344 Loan balances: Individually evaluated for loss $ 780 $ 1,937 $ 2,445 $ 355 $ 881 $ 258 $ 72 $ 6,728 Collectively evaluated for loss 136,066 11,801 115,755 54,151 77,443 3,626 20,199 419,041 Total $ 136,846 $ 13,738 $ 118,200 $ 54,506 $ 78,324 $ 3,884 $ 20,271 $ 425,769 The Company’s impaired loans decreased $1.1 million from $9.8 million at December 31, 2017 to $8.7 million at December 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 December 31, 2018 and December 31, 2017 was related to TDRs that are current and accruing interest, but still classified as impaired. Interest income recognized on a cash basis for impaired loans was immaterial during the years 2018, 2017 and 2016. The following tables present information on impaired loans: As of December 31, 2018 (Dollars in thousands) 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 loans $ 623 $ 623 $ 413 $ 210 $ 100 $ 640 $ 10 Construction and land loans 3,543 1,808 1,383 425 103 2,689 53 Commercial real estate loans 3,912 3,912 2,120 1,792 67 3,928 487 Commercial loans 1,528 1,528 1,446 82 27 1,537 - Agriculture loans 932 717 529 188 13 844 52 Municipal loans 58 58 58 - - 58 1 Consumer loans 45 45 45 - - 49 - Total impaired loans $ 10,641 $ 8,691 $ 5,994 $ 2,697 $ 310 $ 9,745 $ 603 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 loans $ 747 $ 747 $ 503 $ 244 $ 73 $ 774 $ 8 Construction and land loans 3,766 2,031 430 1,601 102 2,033 65 Commercial real estate loans 3,973 3,973 3,888 85 52 3,989 490 Commercial loans 2,002 2,002 11 1,991 391 2,082 - Agriculture loans 1,048 833 545 288 24 912 1 Municipal loans 140 140 140 - - 192 5 Consumer loans 34 34 34 - - 35 - Total impaired loans $ 11,710 $ 9,760 $ 5,551 $ 4,209 $ 642 $ 10,017 $ 569 As of December 31, 2016 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 loans $ 780 $ 780 $ 780 $ - $ - $ 798 $ 7 Construction and land loans 3,672 1,937 1,937 - - 2,068 72 Commercial real estate loans 2,445 2,445 2,145 300 81 2,587 505 Commercial loans 355 355 46 309 87 425 2 Agriculture loans 1,173 881 147 734 89 1,000 2 Municipal loans 258 258 258 - - 418 - Consumer loans 72 72 55 17 17 78 13 Total impaired loans $ 8,755 $ 6,728 $ 5,368 $ 1,360 $ 274 $ 7,374 $ 601 The Company’s key credit quality indicator is a loan’s performance status, defined as accruing or non-accruing. Performing loans are considered to have a lower risk of loss. Non-accrual loans are those which the Company believes have a higher risk of loss. The accrual of interest on non-performing loans is discontinued at the time the loan is ninety days delinquent, unless the credit is well secured and in process of collection. Loans are placed on non-accrual or are charged off at an earlier date if collection of principal or interest is considered doubtful. There were no loans ninety days delinquent and accruing interest at December 31, 2018 or December 31, 2017. The following tables present information on the Company’s past due and non-accrual loans by loan class: As of December 31, 2018 (Dollars in thousands) 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 loans $ 131 $ 206 $ - $ 337 $ 442 $ 779 $ 136,116 Construction and land loans - 134 - 134 948 1,082 19,001 Commercial real estate loans 465 - - 465 1,791 2,256 136,711 Commercial loans 398 20 - 418 1,528 1,946 72,343 Agriculture loans 100 88 - 188 482 670 95,962 Municipal loans - - - - - - 2,953 Consumer loans 106 23 - 129 45 174 25,254 Total $ 1,200 $ 471 $ - $ 1,671 $ 5,236 $ 6,907 $ 488,340 Percent of gross loans 0.24 % 0.10 % 0.00 % 0.34 % 1.06 % 1.40 % 98.60 % 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 loans $ 101 $ 313 $ - $ 414 $ 552 $ 966 $ 135,249 Construction and land loans - 4 - 4 779 783 18,573 Commercial real estate loans 22 209 - 231 1,841 2,072 118,552 Commercial loans - 397 - 397 2,002 2,399 52,192 Agriculture loans - - - - 833 833 82,175 Municipal loans - - - - - - 3,396 Consumer loans 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 % 1.37 % 1.68 % 98.32 % Under the original terms of the Company’s non-accrual loans, interest earned on such loans for the years 2018, 2017 and 2016, would have increased interest income by $254,000, $185,000 and $75,000, respectively. No interest income related to non-accrual loans was included in interest income for the years ended December 31, 2018, 2017 and 2016. 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. Non-classified 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 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 December 31, 2018 As of December 31, 2017 (Dollars in thousands) Nonclassified Classified Nonclassified Classified One-to-four family residential real estate loans $ 135,947 $ 948 $ 135,475 $ 740 Construction and land loans 19,135 948 18,577 779 Commercial real estate loans 126,619 12,348 114,736 5,888 Commercial loans 66,490 7,799 52,313 2,278 Agriculture loans 86,917 9,715 76,455 6,553 Municipal loans 2,953 - 3,396 - Consumer loans 25,383 45 22,006 40 Total $ 463,444 $ 31,803 $ 422,958 $ 16,278 At December 31, 2018, the Company had ten loan relationships consisting of fourteen outstanding loans totaling $4.0 million that were classified as TDRs compared to twelve relationships consisting of twenty outstanding loans totaling $4.8 million that were classified as TDRs at December 31, 2017. During 2018, the Company classified an agriculture loan totaling $64,000 as a TDR after originating a loan to an existing loan relationship that was classified as a TDR in 2016. As part of the restructuring the borrower paid off three loans previously classified as TDRs. Since the agriculture loan relationship was adequately secured, no impairments were recorded against the principal as of December 31, 2018. The Company also classified a $36,000 commercial loan as a TDR after extending the maturity of the loan during 2018. The commercial loan had a $10,000 impairment recorded against the principal balance as of December 31, 2018. An agriculture loan relationship consisting of two loans that were originally classified as TDRs during 2015 and a municipal loan that was classified as a TDR in 2010 were both paid off in 2018. During 2017, the Company classified four agriculture loans totaling $98,000 as TDRs after refinancing existing loans to two agriculture loan relationships that were classified as TDRs in 2016 and 2015. The Company also classified a $104,000 agriculture loan as a TDR in 2017 after extending the maturity of the loan. The Company also classified a one-to-four family residential real estate loan totaling $25,000 as a TDR during 2017 after modifying the terms per a bankruptcy judgment. Also during 2017, the Company classified an $11,000 commercial real estate loan as a TDR after extending the maturity of the loan. The $11,000 commercial real estate loan was charged-off during 2017 as a result of the borrower failing to comply with the terms of the restructuring. During 2016, the Company classified a $268,000 agriculture loan relationship consisting of three loans as a TDR after extending the maturities of the loans. The collateral securing the loans was deemed to be insufficient, resulting in a charge-off of $215,000. The Company also classified an $8,000 commercial loan as a TDR during 2016 after modifying the payments to interest only. Also during 2016, the Company classified an $188,000 one-to-four family residential real estate loan as a TDR after agreeing to a loan modification which adjusted the payment schedule. 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 was one commercial real estate loan totaling $11,000 that was classified as a TDR during 2017 which defaulted within 12 months of modification. The loan was charged-off as of December 31, 2017. There were no loans modified as TDRs for which there was a payment default within 12 months of modification as of December 31, 2018 and 2016. At December 31, 2018, there was a commitment of $10,000 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 during 2018 and recorded a credit provision for loan loss of $117,000 against TDRs during 2018. The Company recorded charge-offs of $11,000 and a provision for loan loss of $47,000 against TDRs during 2017. The Company recorded charge-offs of $215,000 and a provision for loan loss of $16,000 against TDRs during 2016. The Company allocated $10,000 and $127,000 of the allowance for loan losses recorded against loans classified as TDRs at December 31, 2018 and 2017, respectively. The following table presents information on loans that were classified as TDRs: As of December 31, 2018 As of December 31, 2017 (Dollars in thousands) Number of loans Non-accrual balance Accruing balance Number of loans Non-accrual balance Accruing balance One-to-four family residential real estate loans 2 $ - $ 181 2 $ - $ 195 Construction and land loans 4 523 860 4 575 1,252 Commercial real estate loans 2 - 2,121 3 45 2,132 Commerical loans 1 36 - - - - Agriculture 4 23 235 9 471 - Municipal loans 1 - 58 2 - 140 Total troubled debt restructurings 14 $ 582 $ 3,455 20 $ 1,091 $ 3,719 The Company had loans and unfunded commitments to directors and officers, and to affiliated parties, at December 31, 2018 and 2017. A summary of such loans is as follows: (Dollars in thousands) Balance at December 31, 2017 $ 14,681 New loans 11,909 Repayments (12,929 ) Balance at December 31, 2018 $ 13,661 |
Loan Commitments
Loan Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Loan Commitments [Abstract] | |
Loan Commitments | (6) Loan Commitments The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet customers’ financing needs. These financial instruments consist principally of commitments to extend credit. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The Company’s exposure to credit loss in the event of nonperformance by the other party is represented by the contractual amount of those instruments. In the normal course of business, there are various commitments and contingent liabilities, such as commitments to extend credit, letters of credit, and lines of credit, the balance of which are not recorded in the accompanying consolidated financial statements. The Company generally requires collateral or other security on unfunded loan commitments and irrevocable letters of credit. Unfunded commitments to extend credit, excluding standby letters of credit, aggregated to $86.7 million and $87.6 million at December 31, 2018 and 2017, respectively, and are generally at variable interest rates. Standby letters of credit totaled $1.4 million at December 31, 2018 and $806,000 at December 31, 2017. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | (7) Goodwill and Intangible Assets The Company performed its annual step one impairment test as of December 31, 2018. The fair value of the Company’s single reporting unit was compared to the carrying value of the single reporting unit at the measurement date to determine if any impairment existed. Based on the results of the December 31, 2018 step one impairment test, the Company concluded its goodwill was not impaired. A summary of the other intangible assets that continue to be subject to amortization is as follows: As of December 31, 2018 (Dollars in thousands) Gross carrying amount Accumulated amortization Net carrying amount Core deposit intangible assets $ 2,067 $ (1,588 ) $ 479 Lease intangible asset 350 (233 ) 117 Mortgage servicing rights 6,545 (4,050 ) 2,495 Total other intangible assets $ 8,962 $ (5,871 ) $ 3,091 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 years ending December 31: Amortization (Dollars in thousands) expense 2019 214 2020 177 2021 121 2022 58 2023 26 Total $ 596 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: As of December 31, (Dollars in thousands) 2018 2017 FHLMC $ 521,489 $ 517,863 FHLB 10,603 9,782 Custodial escrow balances maintained in connection with serviced loans were $4.5 million and $4.4 million at December 31, 2018 and 2017, respectively. Gross service fee income related to such loans was $1.4 million, $1.3 million and $1.2 million for the years ended December 31, 2018, 2017 and 2016, respectively, and is included in fees and service charges in the consolidated statements of earnings. Activity for mortgage servicing rights and the related valuation allowance follows: As of December 31, (Dollars in thousands) 2018 2017 Mortgage servicing rights: Balance at beginning of year $ 2,811 $ 2,849 Additions 543 931 Amortization (859 ) (969 ) Balance at end of year $ 2,495 $ 2,811 At December 31, 2018 and 2017, there was no valuation allowance related to mortgage servicing rights. The fair value of mortgage servicing rights was $6.2 million and $5.6 million at December 31, 2018 and 2017, respectively. Fair value at December 31, 2018 was determined using discount rates ranging from 9.00% to 11.00%, prepayment speeds ranging from 6.00% to 22.40%, depending on the stratification of the specific mortgage servicing right, and a weighted average default rate of 1.37%. 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 December 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. As of December 31, 2018, the Company did not have any outstanding mortgage repurchase requests. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | (8) Premises and Equipment Premises and equipment consisted of the following: Estimated As of December 31, (Dollars in thousands) useful lives 2018 2017 Land Indefinite $ 6,279 $ 6,279 Office buildings and improvements 10 - 50 years 20,859 19,837 Furniture and equipment 3 - 15 years 7,675 8,589 Automobiles 2 - 5 years 585 554 Total premises and equipment 35,398 35,259 Accumulated depreciation (14,271 ) (14,435 ) Total premises and equipment, net $ 21,127 $ 20,824 Depreciation expense for the years ended December 31, 2018, 2017 and 2016 was $1.0 million, $1.0 million, and $1.1 million, respectively, and was included in occupancy and equipment on the consolidated statements of earnings. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Deposits | (9) Deposits The following table presents the maturities of time deposits at December 31, 2018: (Dollars in thousands) Year Amount 2019 $ 137,638 2020 15,686 2021 4,579 2022 6,332 2023 2,782 Thereafter 3 Total $ 167,020 The aggregate amount of time deposits in denominations of $250,000 or more at December 31, 2018 and 2017 was $14.2 million and $19.2 million, respectively. As of December 31, 2018, the Company had brokered time deposits of $61.9 million which all mature during 2019. The Company did not have any brokered time deposits as of December 31, 2017. The components of interest expense associated with deposits are as follows: Years ended December 31, (Dollars in thousands) 2018 2017 2016 Time deposits $ 1,195 $ 593 $ 650 Money market and checking 1,833 948 458 Savings 28 28 26 Total $ 3,056 $ 1,569 $ 1,134 |
Federal Home Loan Bank Borrowin
Federal Home Loan Bank Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Federal Home Loan Bank Borrowings | (10) Federal Home Loan Bank Borrowings The Company did not have any term advances from FHLB at December 31, 2018 compared to $25.0 million at December 31, 2017. All of the Bank’s term advances with the FHLB had fixed rates and prepayment penalties and matured in 2018. Additionally, the Bank also has a line of credit, renewable annually each September, with the FHLB under which there were $20.0 million of borrowings at December 31, 2018 compared to $6.6 million of borrowings as of December 31, 2017. Interest on any outstanding balance on the line of credit accrues at the federal funds rate plus 0.15% (2.65% at December 31, 2018). Although no loans are specifically pledged, the FHLB requires the Bank to maintain eligible collateral (qualifying loans and investment securities) that has a lending value at least equal to its required collateral. At December 31, 2018 and 2017, there was a blanket pledge of loans and securities totaling $156.9 million and $130.6 million, respectively. At December 31, 2018 and 2017, the Bank’s total borrowing capacity with the FHLB was approximately $115.3 million and $97.5 million, respectively. At December 31, 2018 and 2017, the Bank’s available borrowing capacity was $85.0 million and $55.6 million, respectively. The available borrowing capacity with the FHLB is collateral based, and the Bank’s ability to borrow is subject to maintaining collateral that meets the eligibility requirements. The borrowing capacity is not committed and is subject to FHLB credit requirements and policies. In addition, the Bank must maintain a restricted investment in FHLB stock to maintain access to borrowings. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2018 | |
Subordinated Debt [Abstract] | |
Subordinated Debentures | (11) Subordinated Debentures In 2003, the Company issued $8.2 million of subordinated debentures. These debentures, which are due in 2034 and are currently redeemable, were issued to a wholly owned grantor trust (the “Trust”) formed to issue preferred securities representing undivided beneficial interests in the assets of the Trust. The Trust then invested the gross proceeds of such preferred securities in the debentures. The Trust’s preferred securities and the subordinated debentures require quarterly interest payments and have variable rates, adjustable quarterly. Interest accrues at three month LIBOR plus 2.85%. The interest rate at December 31, 2018 and 2017 was 5.37% and 4.23%, respectively. In 2005, the Company issued an additional $8.2 million of subordinated debentures. These debentures, which are due in 2036 and are currently redeemable, were issued to a wholly owned grantor trust (“Trust II”) formed to issue preferred securities representing undivided beneficial interests in the assets of Trust II. Trust II then invested the gross proceeds of such preferred securities in the debentures. Trust II’s preferred securities and the subordinated debentures require quarterly interest payments and have variable rates, adjustable quarterly. Interest accrues at three month LIBOR plus 1.34%. The interest rate at December 31, 2018 and 2017 was 4.13% and 2.93 %, respectively. In 2013, the Company assumed an additional $5.2 million of subordinated debentures as part of the Bank’s acquisition of Citizens Bank. These debentures, which are due in 2036 and are currently redeemable, were issued by Citizens Bank’s former holding company to a wholly owned grantor trust, First Capital (KS) Statutory Trust (“Trust III”) formed to issue preferred securities representing undivided beneficial interests in the assets of Trust III. Trust III’s preferred securities and the subordinated debentures require quarterly interest payments and have variable rates, adjustable quarterly. Interest accrues at three month LIBOR plus 1.62%. The interest rate at December 31, 2018 and 2017 was 4.44% and 3.29% respectively. Including the purchase accounting accretion which ended during 2018, the effective interest rate was 7.17% at December 31, 2017. While these trusts are accounted for as unconsolidated equity investments, a portion of the trust preferred securities issued by the trusts qualifies as Tier 1 Capital for regulatory purposes. |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Other Borrowings | (12) Other Borrowings The Company has a $7.5 million line of credit from an unrelated financial institution maturing on November 1, 2019, with an interest rate that adjusts daily based on the prime rate less 0.25%. This line of credit has covenants specific to capital and other financial ratios, which the Company was in compliance with at December 31, 2018. As of December 31, 2018 and 2017, the Company did not have an outstanding balance on the line of credit. At December 31, 2018 and 2017, the Bank had no borrowings through the Federal Reserve discount window, while the borrowing capacity was $10.1 million and $14.5 million, respectively. The Bank also has various other federal funds agreements, both secured and unsecured, with correspondent banks totaling approximately $30.0 million at December 31, 2018 and 2017. As of December 31, 2018 and 2017, there were no borrowings through these correspondent bank federal funds agreements. |
Repurchase Agreements
Repurchase Agreements | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Repurchase Agreements | (13) 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. Repurchase agreements are comprised of non-insured customer funds, totaling $15.2 million at December 31, 2018, and $13.5 million at December 31, 2017, which were secured by $18.6 million and $16.8 million of the Bank’s investment portfolio at the same dates, respectively. The following is a summary of the balances and collateral of the Company’s repurchase agreements: Years ended December 31, (Dollars in thousands) 2018 2017 Average daily balance during the year $ 12,388 $ 12,819 Average interest rate during the year 0.87 % 0.26 % Maximum month-end balance during the year $ 15,246 $ 16,801 Weighted average interest rate at year-end 1.00 % 0.70 % As of December 31, 2018 Overnight and Greater Continuous Up to 30 days 30-90 days than 90 days Total Repurchase agreements: U.S. federal treasury obligations $ 416 $ - $ - $ - $ 416 U.S. federal agency obligations 5,626 - - - 5,626 Agency mortgage-backed securities 9,204 - - - 9,204 Total $ 15,246 $ - $ - $ - $ 15,246 As of December 31, 2017 Overnight and Up to Greater Continuous 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 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 | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | (14) 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. Years ended December 31, (Dollars in thousands) 2018 2017 Non-interest income: Service charges on deposits Overdraft fees $ 3,321 $ 3,571 Other 529 577 Interchange income 1,935 1,681 Loan servicing fees (1) 1,350 1,305 Office lease income (1) 630 604 Gains on sales of loans (1) 5,023 5,390 Bank owned life insurance income (1) 644 912 Gains (losses) on sales of investment securities (1) 20 498 Gains (losses) on sales of real estate owned (58 ) 13 Other 2,177 733 Total non-interest income $ 15,571 $ 15,284 (1) Not within the scope of ASC 606. The increase in other non-interest income during 2018 was primarily the result of recoveries of $1.5 million on a deposit-related loss that occurred in the third quarter of 2017. A description of the Company’s revenue streams within the scope of 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 years 2018 or 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (15) Income Taxes On December 22, 2017, H.R.1, commonly known as the Tax Cuts and Jobs Act (the “Act”), was signed into law. Among other things, the Act reduced our corporate federal tax rate from 34% to 21% effective January 1, 2018. As a result at December 31, 2017, we were required to re-measure, through income tax expense, our deferred tax assets and liabilities using the enacted rate at which we expect them to be recovered or settled. The re-measurement of our net deferred tax asset resulted in additional income tax benefit of $--352,000. After completing our 2017 tax return, income tax expense of $85,000 was recorded in 2018 associated with the re-measurement of our net deferred tax asset. At December 31, 2017, the Company early adopted ASU 2018-02 and reclassified out of accumulated other comprehensive income and into retained earnings $67,000 of tax benefit that was recorded to income tax expense at December 22, 2017 due to re-measuring the tax rate on deferred taxes to 21% on available-for-sale securities. Income tax expense (benefit) attributable to income from operations consisted of the following: Years ended December 31, (Dollars in thousands) 2018 2017 2016 Current: Federal $ 396 $ (1,108 ) $ 1,298 State (197 ) (276 ) 97 Total current 199 (1,384 ) 1,395 Deferred: Federal 875 768 797 State 155 27 248 Total deferred 1,030 795 1,045 Deferred tax valuation allowance (146 ) 44 (126 ) Deferred tax remeasurement 85 (352 ) - Income tax (benefit) expense $ 1,168 $ (897 ) $ 2,314 The reasons for the difference between actual income tax expense (benefit) and expected income tax expense attributable to income from operations at the statutory federal income tax rate were as follows: Years ended December 31, (Dollars in thousands) 2018 2017 2016 Computed “expected” tax expense $ 2,435 $ 1,180 $ 3,833 (Reduction) increase in income taxes resulting from: Tax-exempt interest income, net (850 ) (1,346 ) (1,220 ) Deferred tax remeasurement 85 (352 ) - REIT excise tax - 249 - Excess tax benefit from stock option exercise (119 ) (107 ) (283 ) Bank owned life insurance (140 ) (316 ) (177 ) Reversal of unrecognized tax benefits, net (512 ) (197 ) (125 ) State income taxes, net of federal benefit 364 61 269 Investment tax credits (24 ) (7 ) (11 ) Other, net (71 ) (62 ) 28 $ 1,168 $ (897 ) $ 2,314 The tax effects of temporary differences that give rise to the significant portions of the deferred tax assets and liabilities at the following dates were as follows: As of December 31, (Dollars in thousands) 2018 2017 Deferred tax assets: Federal alternative minimum tax credit and low income housing credit carry forwards $ - $ 2,485 Loans, including allowance for loan losses 1,489 1,419 Net operating loss carry forwards 383 529 State taxes 398 413 Acquisition costs 202 224 Deferred compensation arrangements 78 88 Unrealized loss on investment securities available-for-sale 1,295 132 Investments 33 46 Other, net 26 46 Total deferred tax assets 3,904 5,382 Less valuation allowance (383 ) (529 ) Total deferred tax assets, net of valuation allowance 3,521 4,853 Deferred tax liabilities: Undistributed equity earnings - 1,539 Premises and equipment, net of depreciation 447 454 Mortgage servicing rights 464 470 Prepaid expenses 209 210 Intangible assets 92 12 FHLB stock dividends 56 74 Other borrowings - 35 Total deferred tax liabilities 1,268 2,794 Net deferred tax asset $ 2,253 $ 2,059 The Company has Kansas corporate net operating loss carry forwards totaling $6.6 million and $9.1 million as of December 31, 2018 and 2017, respectively, which expire between 2019 and 2027. The Company has recorded a valuation allowance against the Kansas corporate net operating loss carry forwards. A valuation allowance related to the remaining deferred tax assets has not been provided because management believes it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets at December 31, 2018. Retained earnings at December 31, 2018 and 2017 include approximately $6.3 million for which no provision for federal income tax had been made. This amount represents allocations of income to bad debt deductions in years prior to 1988 for tax purposes only. Reduction of amounts allocated for purposes other than tax bad debt losses will create income for tax purposes only, which will be subject to the then current corporate income tax rate. The Company has unrecognized tax benefits representing tax positions for which a liability has been established. A reconciliation of the beginning and ending amount of the liability relating to unrecognized tax benefits is as follows: Years ended December 31, (Dollars in thousands) 2018 2017 Unrecognized tax benefits at beginning of year $ 1,505 $ 1,809 Gross increases to current year tax positions 464 50 Gross decreases to prior year’s tax positions (2 ) (10 ) Lapse of statute of limitations (495 ) (344 ) Unrecognized tax benefits at end of year $ 1,472 $ 1,505 Tax years that remain open and subject to audit include the years 2015 through 2018 for both federal and state tax purposes. The Company recognized $495,000 and $344,000 of previously unrecognized tax benefits during 2018 and 2017, respectively. The gross unrecognized tax benefits of $1.5 million at December 31, 2018 and December 31, 2017, respectively, would favorably impact the effective tax rate by $1.2 million if recognized. During 2018, the Company recorded an income tax benefit of $119,000 associated with interest and penalties. During 2017 and 2016, the Company recorded $30,000, and $84,000 respectively, of income tax expense associated with interest and penalties. As of December 31, 2018 and 2017, the Company has accrued interest and penalties related to the unrecognized tax benefits of $331,000 and $450,000, respectively which are not included in the table above. The Company believes that it is reasonably possible that a reduction in gross unrecognized tax benefits of up to $608,000 is possible during the next 12 months as a result of the lapse of the statute of limitations. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | (16) Employee Benefit Plans Employee Retirement Plan. Split Dollar Life Insurance Agreement. Deferred Compensation Agreements. |
Stock Compensation Plan
Stock Compensation Plan | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plan | (17) Stock Compensation Plan The Company has a stock-based employee compensation plan which allows for the issuance of stock options and restricted common stock, the purpose of which is to provide additional incentive to certain officers, directors, and key employees by facilitating their purchase of a stock interest in the Company. Compensation expense related to prior awards is recognized on a straight line basis over the vesting period, which is typically four or five years. The stock-based compensation cost related to these awards was $223,000, $172,000 and $59,000 for the years ended December 31, 2018, 2017 and 2016, respectively. The Company recognized tax benefits of $194,000, $180,000, and $330,000 for the years ended December 31, 2018, 2017 and 2016, respectively. For stock options, the exercise price may not be less than 100% of the fair market value of the shares on the date of the grant, and no option shall be exercisable after the expiration of ten years from the grant date. In determining compensation cost, the Black-Scholes option-pricing model is used to estimate the fair value of options on date of grant. The Black-Scholes model is a closed-end model that uses the assumptions outlined below. Expected volatility is based on historical volatility of the Company’s stock. The Company uses historical exercise behavior and other qualitative factors to estimate the expected term of the options, which represents the period of time that the options granted are expected to be outstanding. The risk-free rate for the expected term is based on U.S. Treasury rates in effect at the time of grant. At the annual meeting of stockholders on May 20, 2015, our stockholders approved the 2015 Stock Incentive Plan which authorized the issuance of equity awards covering 303,877 shares of common stock as adjusted for subsequent stock dividends. On August 1, 2016, the Company’s Compensation Committee awarded 14,355, as adjusted for subsequent stock dividends, shares of restricted common stock. These awards vest ratably over one or four years. The value of the 14,355, as adjusted for subsequent stock dividends, shares was based on a stock price of $22.24 per share on the date such shares were granted as adjusted for subsequent stock dividends. On August 1, 2017, the Compensation Committee awarded 3,016, as adjusted for subsequent stock dividends, shares of restricted common stock and options to acquire 35,757, as adjusted for subsequent stock dividends, shares of common stock. The restricted stock awards vest ratably over one year and the value was based on a stock price of $26.53 per share on the date such shares were granted as adjusted for subsequent stock dividends. The options vest ratably over four years. On August 1, 2018, the Compensation Committee awarded 11,319, as adjusted for subsequent stock dividends, shares of restricted common stock. The value of the 11,319, as adjusted for subsequent stock dividends, shares was based on a stock price of $27.63 on the date such shares were granted as adjusted for subsequent stock dividends. The fair value of the options granted were determined using the following weighted-average assumptions as of the grant date: Years ended December 31, 2018 2017 2016 Risk-free interest rate n/a 2.07 % n/a Expected term n/a 7 years n/a Expected stock price volatility n/a 33.30 % n/a Dividend yield n/a 2.74 % n/a A summary of option activity during 2018 is presented below: Weighted Weighted average average exercise remaining Aggregate (Dollars in thousands, except per share amounts) Shares price per share contractual term intrinsic value Outstanding at January 1, 2018 173,448 $ 16.09 2.8 years $ 2,237 Granted - $ - Effect of 5% stock dividend 3,431 $ Forfeited/expired (36,043 ) $ 15.42 Exercised (72,130 ) $ 7.40 Outstanding at December 31, 2018 68,706 $ 17.97 5.1 years $ 462 Exercisable at December 31, 2018 44,159 $ 13.21 3.2 years $ 462 Fully vested options at December 31, 2018 44,159 $ 13.21 3.2 years $ 462 Additional information about stock options exercised is presented below: (Dollars in thousands) Years ended December 31, 2018 2017 2016 Intrinsic value of options exercised (on exercise date) $ 1,523 $ 279 $ 1,820 Cash received from options exercised 534 228 1,796 Excess tax benefit realized from options exercised $ 136 $ 103 $ 308 As of December 31, 2018, there was $160,000 of unrecognized compensation cost related to the 24,547 outstanding nonvested options. (Dollars in thousands) Year Amount 2019 $ 62 2020 62 2021 36 Total $ 160 A summary of nonvested restricted common stock activity during 2018 is presented below: Shares Weighted average grant date price per share Nonvested restricted common stock at January 1, 2018 9,834 $ 24.67 Granted 10,780 $ 27.63 Vested (4,605 ) $ 26.16 Effect of 5% stock dividend 791 Nonvested restricted common stock at December 31, 2018 16,800 $ 25.87 As of December 31, 2018, there was $339,000 of total unrecognized compensation cost related to 16,800 outstanding unvested restricted shares that will be recognized over the following periods: (Dollars in thousands) Year Amount 2019 $ 155 2020 92 2021 58 2022 34 Total $ 339 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments and Fair Value Measurements | (18) 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 December 31, 2018 and 2017, including methods and assumptions utilized, are set forth below: As of December 31, 2018 Carrying (Dollars in thousands) amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 19,114 $ 19,114 $ - $ - $ 19,114 Investment securities available for sale 388,345 1,971 386,374 - 388,345 Bank stocks, at cost 4,776 n/a n/a n/a n/a Loans, net 489,373 - - 494,473 494,473 Loans held for sale 4,743 - 4,743 - 4,743 Derivative financial instruments 522 - 522 - 522 Accrued interest receivable 4,631 - 2,194 2,437 4,631 Financial liabilities: Non-maturity deposits $ (656,628 ) $ (656,628 ) $ - $ - (656,628 ) Time deposits (167,020 ) - (164,994 ) - (164,994 ) FHLB borrowings (20,000 ) - (20,000 ) - (20,000 ) Subordinated debentures (21,651 ) - (19,678 ) - (19,678 ) Other borrowings (15,246 ) - (15,246 ) - (15,246 ) Accrued interest payable (442 ) - (442 ) - (442 ) Derivative financial instruments (25 ) - (25 ) - (25 ) As of December 31, 2017 Carrying (Dollars in thousands) 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 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. Transfers The Company did not transfer any assets or liabilities among levels during the year ended December 31, 2018 or 2017. Valuation Methods for Instruments Measured at Fair Value on a Recurring Basis The following table represents the Company’s financial instruments that are measured at fair value on a recurring basis at December 31, 2018 and 2017, allocated to the appropriate fair value hierarchy: As of December 31, 2018 Fair value hierarchy (Dollars in thousands) Total Level 1 Level 2 Level 3 Assets: Available-for-sale securities U. S. treasury securities $ 1,971 $ 1,971 $ - $ - U. S. federal agency obligations 10,361 - 10,361 - Municipal obligations, tax exempt 159,112 - 159,112 - Municipal obligations, taxable 53,035 - 53,035 - Agency mortgage-backed securities 156,076 - 156,076 - Certificates of deposit 7,790 - 7,790 - Loans held for sale 4,743 - 4,743 - Derivative financial instruments 522 - 522 - Liabilities: Derivative financial instruments (25 ) - (25 ) - As of December 31, 2017 Fair value hierarchy (Dollars in thousands) Total Level 1 Level 2 Level 3 Assets: Available-for-sale 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 - Common stocks 8 8 - - Certificates of deposit 9,224 - 9,224 - Loans held for sale 6,535 - 6,535 - Derivative financial instruments 395 - 395 - The Company’s investment securities classified as available-for-sale include U.S. treasury securities, U.S. federal agency securities, 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 obligations are priced utilizing industry-standard models that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. These measurements are classified as Level 2. Municipal securities are valued using a type of matrix, or grid, pricing in which securities are benchmarked against U.S. treasury rates based on credit rating. These model and matrix measurements are classified as Level 2 in the fair value hierarchy. 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. Mortgage loans originated and intended for sale in the secondary market are carried at estimated fair value. The mortgage loan valuations are based on quoted secondary market prices for similar loans and are classified as Level 2. Changes in the fair value of mortgage loans originated and intended for sale in the secondary market and derivative financial instruments are included in gains on sales of loans. The aggregate fair value, contractual balance (including accrued interest), and gain or loss on loans held for sale were as follows: As of December 31, (Dollars in thousands) 2018 2017 Aggregate fair value $ 4,743 $ 6,535 Contractual balance 4,687 6,420 Gain $ 56 $ 115 The Company’s derivative financial instruments consist of interest rate lock commitments and forward commitments for the future delivery of these mortgage loans. The fair values of these derivatives are based on quoted prices for similar loans in the secondary market. The market prices are adjusted by a factor, based on the Company’s historical data and its judgment about future economic trends, which considers the likelihood that a commitment will ultimately result in a closed loan. These instruments are classified as Level 2. The amounts are included in other assets or other liabilities on the consolidated balance sheets and gains on sale of loans, net in the consolidated statements of earnings. The total amount of gains and losses from changes in fair value of loans held for sale included in earnings were as follows: As of December 31, (Dollars in thousands) 2018 2017 Interest income $ 333 $ 259 Change in fair value (59 ) 78 Total change in fair value $ 274 $ 337 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 loan balance of the Company’s impaired loans was $8.7 million and $9.8 million, with an allocated allowance of $310,000 and $642,000, at December 31, 2018 and 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 table represents the Company’s financial instruments that are measured at fair value on a non-recurring basis as of December 31, 2018 and 2017 allocated to the appropriate fair value hierarchy: As of December 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 $ 110 $ - $ - $ 110 $ (29 ) Construction and land 322 - - 322 (103 ) Commercial real estate loans 1,725 - - 1,725 377 Commercial loans 55 - - 55 (51 ) Agriculture loans 175 - - 175 11 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 loans 33 - - 33 12 Commercial loans 1,600 - - 1,600 (304 ) Agriculture loans 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 for impaired loans measure at fair value on a non-recurring basis as of December 31, 2018 and 2017. (Dollars in thousands) Fair value Valuation technique Unobservable inputs Range As of December 31, 2018 Impaired loans: One-to-four family residential real estate $ 110 Sales comparison Adjustment to appraised value 0%-20 % Construction and land 322 Sales comparison Adjustment to appraised value 0%-25 % Commercial real estate 1,725 Sales comparison Adjustment to appraised value 0 % Commercial loans 55 Sales comparison Adjustment to comparable sales 0%-15 % Agriculture loans 175 Sales comparison Adjustment to appraised value 0 % 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 % Commercial real estate 33 Sales comparison Adjustment to appraised value 0%-91 % Commercial loans 1,600 Sales comparison Adjustment to comparable sales 15%-50 % Agriculture loans 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 | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Capital Requirements | (19) 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 as of December 31, 2018, the Company and 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 Basel III Rule, which is 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 $3.0 billion). The Basel III Rule includes a common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6.0%, a minimum ratio of Total Capital to risk-weighted assets of 8.0%, and a minimum Tier 1 leverage 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 was 0.625% for 2016, 1.25% for 2017, and 1.875% for 2018 and increased to its final level of 2.5% on January 1, 2019. The capital conservation buffer increases the common equity Tier 1 capital ratio, and Tier 1 capital and total risk based capital ratios. As of December 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 Bank’s category. The following is a comparison of the Company’s regulatory capital to minimum capital requirements in effect at December 31, 2018 and 2017: For capital Actual adequacy purposes (Dollars in thousands) Amount Ratio Amount Ratio (1) As of December 31, 2018 Leverage $ 99,150 10.34 % $ 38,373 4.0 % Common Equity Tier 1 Capital 78,150 13.12 % 37,982 6.4 % Tier 1 Capital 99,150 16.64 % 46,919 7.9 % Total Risk Based Capital 105,055 17.63 % 58,835 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 percent for capital adequacy purposes includes a capital conservation buffer of 1.875% for December 31, 2018 and 1.25% for December 31, 2017. The following is a comparison of the Bank’s regulatory capital to minimum capital requirements in effect at December 31, 2018 and 2017: To be well-capitalized under prompt For capital corrective Actual adequacy purposes action provisions (Dollars in thousands) Amount Ratio Amount Ratio (1) Amount Ratio As of December 31, 2018 Leverage $ 97,112 10.15 % $ 38,254 4.0 % $ 47,818 5.0 % Common Equity Tier 1 Capital 97,112 16.33 % 37,922 6.4 % 38,665 6.5 % Tier 1 Capital 97,112 16.33 % 46,844 7.9 % 47,588 8.0 % Total Risk Based Capital 103,017 17.32 % 58,741 9.9 % 59,485 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 percent for capital adequacy purposes includes a capital conservation buffer of 1.875% for December 31, 2018 and 1.25% for December 31, 2017. |
Parent Company Condensed Financ
Parent Company Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Condensed Financial Statements | (20) Parent Company Condensed Financial Statements The following is condensed financial information of the parent company as of December 31, 2018 and 2017 and for the years ended December 31, 2018, 2017 and 2016: Condensed Balance Sheets As of December 31, (Dollars in thousands) 2018 2017 Assets: Cash and cash equivalents $ 100 $ 217 Investment securities 237 245 Investment in subsidiaries 112,394 107,443 Other 942 1,261 Total assets $ 113,673 $ 109,166 Liabilities and stockholders' equity: Subordinated debentures $ 21,651 $ 21,484 Other 121 60 Stockholders' equity 91,901 87,622 Total liabilities and stockholders' equity $ 113,673 $ 109,166 Condensed Statements of Earnings Years ended December 31, (Dollars in thousands) 2018 2017 2016 Dividends from Bank $ 3,200 $ 3,700 $ 1,250 Interest income 29 49 59 Gain on sale of investment - 493 324 Other non-interest income 7 7 7 Interest expense (1,078 ) (898 ) (787 ) Other expense, net (325 ) (470 ) (314 ) Earnings before equity in undistributed earnings 1,833 2,881 539 Increase in undistributed equity of Bank 7,567 633 8,171 Increase in undistributed equity of Nonbank subsidiary 740 542 - Earnings before income taxes 10,140 4,056 8,710 Income tax benefit (286 ) (313 ) (251 ) Net earnings 10,426 4,369 8,961 Other comprehensive (loss) income (3,579 ) 1,010 (3,523 ) Total comprehensive income $ 6,847 $ 5,379 $ 5,438 Condensed Statements of Cash Flows Years ended December 31, (Dollars in thousands) 2018 2017 2016 Cash flows from operating activities: Net earnings $ 10,426 $ 4,369 $ 8,961 Increase in undistributed equity of subsidiaries (8,307 ) (1,175 ) (8,171 ) Amortization of purchase accounting adjustment on subordinated debentures 167 200 200 Gain on sale of investment - (493 ) (324 ) Other 381 (543 ) (112 ) Net cash provided by operating activities 2,667 2,358 554 Cash flows from investing activities: Investment in subsidiary - (250 ) - Proceeds from sales of investments 7 967 445 Net cash provided by investing activities 7 717 445 Cash flows from financing activities: Proceeds from exercise of stock options 534 228 1,796 Proceeds from other borrowings - 100 - Repayments on other borrowings - (100 ) - Payment of dividends (3,325 ) (3,108 ) (2,912 ) Net cash used in financing activities (2,791 ) (2,880 ) (1,116 ) Net (decrease)increase in cash (117 ) 195 (117 ) Cash at beginning of year 217 22 139 Cash at end of year $ 100 $ 217 $ 22 Dividends paid by the Company are provided through dividends from the Bank. At December 31, 2018, the Bank could distribute dividends of up to $16.4 million without regulatory approvals. The primary source of funds for the Company is dividends from the Bank. Under the National Bank Act, a national bank may pay dividends out of its undivided profits in such amounts and at such times as the bank’s board of directors deems prudent. Without prior OCC approval, however, a national bank may not pay dividends in any calendar year that, in the aggregate, exceed the bank’s year-to-date net income plus the bank’s retained net income for the two preceding years. The payment of dividends by any financial institution is affected by the requirement to maintain adequate capital pursuant to applicable capital adequacy guidelines and regulations, and a financial institution generally is prohibited from paying any dividends if, following payment thereof, the institution would be undercapitalized. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | (21) Commitments, Contingencies and Guarantees Commitments to extend credit are legally binding agreements to lend to a borrower providing there are no violations of any conditions established in the contract. The Company, as a provider of financial services, routinely issues financial guarantees in the form of financial and performance commercial and standby letters of credit. As many of the commitments are expected to expire without being drawn upon, the total commitment does not necessarily represent future cash requirements (see Note 6). There are no pending legal proceedings to which the Company or the Bank is a party other than ordinary routine litigation incidental to the Bank’s business. While the ultimate outcome of current legal proceedings cannot be predicted with certainty, it is the opinion of management that the resolution of these legal actions should not have a material effect on the Company’s consolidated financial position or results of operations. |
Deposit-Related Loss
Deposit-Related Loss | 12 Months Ended |
Dec. 31, 2018 | |
Deposit-related Loss | |
Deposit-Related Loss | (22) Deposit-Related Loss On August 8, 2017, the Company was made aware that checks deposited by our customer from a third party were being returned by another financial institution due to uncollected funds related to the third party. This caused a $10.3 million overdraft balance. As of December 31, 2017, the Company’s collection efforts have provided $2.2 million in funds to cover a portion of the overdraft, resulting in an $8.1 million pre-tax loss which is included in other non-interest expense in the consolidated statement of earnings. The Company recovered an additional $1.5 million of this loss during 2018 which includes payments received from the third party whose checks were returned and from insurance claims received. The insurance payments included risk sharing payments from the pool that Landmark Risk Management, Inc. utilizes to spread insurance risk. An investigation of the situation and the potential recovery of losses is ongoing, including whether or not existing insurance policies will cover any more of the loss. The Company intends to protect all of its rights pursuant to this matter and seek all available legal and equitable remedies; however, future recoveries are uncertain. The recovery process is expected to require an extended period of time to resolve, and the Company will likely incur further legal expenses in pursuing our recovery efforts. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation. |
Use of Estimates | Use of Estimates. |
Business Combinations | Business Combinations. |
Reserve Requirements | Reserve Requirements. |
Cash Flows | Cash Flows. |
Investment Securities | Investment Securities. The Company performs quarterly reviews of the investment portfolio to evaluate investment for other-than-temporary impairment. The initial review begins with all securities in an unrealized loss position. The Company’s assessment of other-than-temporary impairment is based on its judgment of the specific facts and circumstances impacting each individual security at the time such assessments are made. The Company reviews and considers all factual information, including expected cash flows, the structure of the security, the credit quality of the underlying assets and the current and anticipated market conditions. Any credit-related impairment on debt securities is recorded through a charge to earnings. Impairment related to other factors is recognized in other comprehensive income. However, if the Company intends to sell or it is more likely than not that it will be required to sell a security in an unrealized loss position before recovery of its amortized costs basis, the entire impairment is recorded through a charge to earnings. |
Common Stocks | Common Stocks. |
Bank Stocks | Bank Stocks. |
Acquired Loans | Acquired Loans. |
Loans | Loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining if a loan is impaired include payment status, probability of collecting scheduled principal and interest payments when due and value of collateral for collateral dependent loans. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. In addition, the Company classifies troubled debt restructurings (“TDR”) as impaired loans. A loan is classified as a TDR if the Company modifies a loan with any concessions, as defined by accounting guidance, to a borrower experiencing financial difficulty. The allowance recorded on impaired loans is measured on a loan-by-loan basis for commercial, commercial real estate, agriculture and construction and land loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Large groups of homogeneous loans with smaller individual balances are collectively evaluated for impairment. Accordingly, the Company generally does not separately identify individual consumer and residential loans for impairment disclosures. The accrual of interest on non-performing loans is discontinued at the time the loan is ninety days delinquent, unless the credit is well-secured and in process of collection. Loans are placed on non-accrual or are charged off at an earlier date if collection of the principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are evaluated individually and are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | Allowance for Loan Losses. In addition to the general component the allowance consists of a specific component. The specific component relates to loans that are individually classified as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered TDRs and classified as impaired. |
Loans Held for Sale | Loans Held for Sale Mortgage loans held for sale are generally sold with servicing rights retained. The carrying value of mortgage loans sold is reduced by the amount allocated to the servicing right. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold. |
Mortgage Servicing Rights | Mortgage Servicing Rights. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are included in amortization expense on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. |
Transfers of Financial Assets | Transfers of Financial Assets. |
Mortgage Loan Repurchase Reserve | Mortgage Loan Repurchase Reserve. |
Premises and Equipment | Premises and Equipment. |
Bank Owned Life Insurance | Bank Owned Life Insurance |
Goodwill and Intangible Assets | Goodwill and Intangible Assets. Intangible assets include core deposit intangibles, lease intangibles and mortgage servicing rights. Core deposit intangible assets are amortized over their estimated useful life of ten years on an accelerated basis. Lease intangible assets are amortized over the life of the lease. When facts and circumstances indicate potential impairment, the Company will evaluate the recoverability of the intangible asset’s carrying value, using estimates of undiscounted future cash flows over the remaining asset life. Any impairment loss is measured by the excess of carrying value over fair value. |
Income Taxes | Income Taxes. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments. |
Loss Contingencies | Loss Contingencies. |
Comprehensive Income | Comprehensive Income. |
Real Estate Owned | Real Estate Owned. |
Stock-Based Compensation | Stock-Based Compensation. In the fourth quarter of 2016, the Company elected to early adopt ASU 2016-09 Compensation-Stock Compensation (Topic 718). As a result of this election, the Company recognized $136,000, $103,000 and $308,000 of excess tax benefits from the exercise of stock options as a reduction in income tax expense during 2018, 2017 and 2016. Also upon early adoption of ASU 2016-09, the Company elected to change its accounting policy to account for forfeitures as they occur. The change in accounting for forfeitures did not impact the consolidated financial statements. |
Earnings Per Share | Earnings per Share. The shares used in the calculation of basic and diluted earnings per share, which have been adjusted to give effect to the 5% common stock dividends paid by the Company in December 2018, 2017 and 2016, are shown below: Years ended December 31, (Dollars in thousands, except per share amounts) 2018 2017 2016 Net earnings available to common shareholders $ 10,426 $ 4,369 $ 8,961 Weighted average common shares outstanding - basic 4,350,671 4,268,556 4,196,949 Assumed exercise of stock options 15,151 74,172 71,996 Weighted average common shares outstanding - diluted 4,365,822 4,342,728 4,268,945 Earnings per share: Basic $ 2.40 $ 1.02 $ 2.13 Diluted $ 2.39 $ 1.01 $ 2.10 |
Derivative Financial Instruments | Derivative Financial Instruments. |
Dividend Restriction | Dividend Restriction. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The shares used in the calculation of basic and diluted earnings per share, which have been adjusted to give effect to the 5% common stock dividends paid by the Company in December 2018, 2017 and 2016, are shown below: Years ended December 31, (Dollars in thousands, except per share amounts) 2018 2017 2016 Net earnings available to common shareholders $ 10,426 $ 4,369 $ 8,961 Weighted average common shares outstanding - basic 4,350,671 4,268,556 4,196,949 Assumed exercise of stock options 15,151 74,172 71,996 Weighted average common shares outstanding - diluted 4,365,822 4,342,728 4,268,945 Earnings per share: Basic $ 2.40 $ 1.02 $ 2.13 Diluted $ 2.39 $ 1.01 $ 2.10 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities | A summary of investment securities available-for-sale is as follows: As of December 31, 2018 Gross Gross Amortized unrealized unrealized Estimated (Dollars in thousands) cost gains losses fair value U. S. treasury securities $ 1,999 $ - $ (28 ) $ 1,971 U. S. federal agency obligations 10,370 32 (41 ) 10,361 Municipal obligations, tax exempt 161,529 353 (2,770 ) 159,112 Municipal obligations, taxable 53,178 180 (323 ) 53,035 Agency mortgage-backed securities 158,765 264 (2,953 ) 156,076 Certificates of deposit 7,790 - - 7,790 Total $ 393,631 $ 829 $ (6,115 ) $ 388,345 As of December 31, 2017 Gross Gross Amortized unrealized unrealized Estimated 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 $ 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 December 31, 2018 Less than 12 months 12 months or longer Total No. of Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) securities value losses value losses value losses U.S. federal treasury securities 1 $ - $ - $ 1,971 $ (28 ) $ 1,971 $ (28 ) U.S. federal agency obligations 6 145 (1 ) 7,970 (40 ) 8,115 (41 ) Municipal obligations, tax exempt 296 35,898 (367 ) 85,921 (2,403 ) 121,819 (2,770 ) Municipal obligations, taxable 86 8,293 (22 ) 28,984 (301 ) 37,277 (323 ) Agency mortgage-backed securities 101 30,030 (146 ) 96,155 (2,807 ) 126,185 (2,953 ) Total 490 $ 74,366 $ (536 ) $ 221,001 $ (5,579 ) $ 295,367 $ (6,115 ) As of December 31, 2017 Less than 12 months 12 months or longer Total No. of Fair Unrealized Fair Unrealized Fair Unrealized securities value losses value losses value losses U.S. federal 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 | The amortized cost and fair value of investment securities at December 31, 2018 are as follows: Amortized Estimated (Dollars in thousands) cost fair value Due in less than one year $ 34,943 $ 34,847 Due after one year but within five years 177,050 174,149 Due after five years but within ten years 103,823 102,522 Due after ten years 77,815 76,827 Total $ 393,631 $ 388,345 |
Schedule of Realized Gain (loss) | Sales proceeds and gross realized gains and losses on sales of available-for-sale securities are as follows: Years ended December 31, (Dollars in thousands) 2018 2017 2016 Sales proceeds $ 21,126 $ 13,810 $ 14,326 Realized gains $ 84 $ 522 $ 573 Realized losses (64 ) (24 ) (15 ) Net realized gains $ 20 $ 498 $ 558 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Loans | Loans consisted of the following: As of December 31, (Dollars in thousands) 2018 2017 One-to-four family residential real estate loans $ 136,895 $ 136,215 Construction and land loans 20,083 19,356 Commercial real estate loans 138,967 120,624 Commercial loans 74,289 54,591 Agriculture loans 96,632 83,008 Municipal loans 2,953 3,396 Consumer loans 25,428 22,046 Total gross loans 495,247 439,236 Net deferred loan costs and loans in process (109 ) (34 ) Allowance for loan losses (5,765 ) (5,459 ) Loans, net $ 489,373 $ 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: Year ended December 31, 2018 (Dollars in thousands) One-to-four family residential real estate loans Construction and land loans Commercial real estate loans Commercial loans Agriculture loans Municipal loans Consumer loans Total Allowance for loan losses: Balance at January 1, 2018 $ 542 $ 181 $ 1,540 $ 1,226 $ 1,812 $ 8 $ 150 $ 5,459 Charge-offs (32 ) - - (950 ) - - (178 ) (1,160 ) Recoveries 4 - 1 22 1 2 36 66 Provision for loan losses (65 ) (13 ) 145 753 425 (3 ) 158 1,400 Balance at December 31, 2018 $ 449 $ 168 $ 1,686 $ 1,051 $ 2,238 $ 7 $ 166 $ 5,765 Allowance for loan losses: Individually evaluated for loss $ 100 $ 103 $ 67 $ 27 $ 13 $ - $ - $ 310 Collectively evaluated for loss 349 65 1,619 1,024 2,225 7 166 5,455 Total $ 449 $ 168 $ 1,686 $ 1,051 $ 2,238 $ 7 $ 166 $ 5,765 Loan balances: Individually evaluated for loss $ 623 $ 1,808 $ 3,912 $ 1,528 $ 717 $ 58 $ 45 $ 8,691 Collectively evaluated for loss 136,272 18,275 135,055 72,761 95,915 2,895 25,383 486,556 Total $ 136,895 $ 20,083 $ 138,967 $ 74,289 $ 96,632 $ 2,953 $ 25,428 $ 495,247 Year ended December 31, 2017 (Dollars in thousands) One-to-four family residential real estate Construction and land Commercial real estate Commercial loans Agriculture loans Municipal loans Consumer loans Total Allowance for loan losses: Balance at January 1, 2017 $ 504 $ 53 $ 1,777 $ 1,119 $ 1,684 $ 12 $ 195 $ 5,344 Charge-offs (37 ) - (71 ) - (45 ) - (335 ) (488 ) Recoveries 11 - - 20 1 37 84 153 Provision for loan losses 64 128 (166 ) 87 172 (41 ) 206 450 Balance at December 31, 2017 $ 542 $ 181 $ 1,540 $ 1,226 $ 1,812 $ 8 $ 150 $ 5,459 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 Year ended December 31, 2016 One-to-four family residential real estate loans Construction and land loans Commercial real estate loans Commercial loans Agriculture loans Municipal loans Consumer loans Total Allowance for loan losses: Balance at January 1, 2016 $ 925 $ 77 $ 1,740 $ 1,530 $ 1,428 $ 23 $ 199 $ 5,922 Charge-offs (14 ) - - (306 ) (375 ) - (471 ) (1,166 ) Recoveries 9 - - 34 - 6 39 88 Provision for loan losses (416 ) (24 ) 37 (139 ) 631 (17 ) 428 500 Balance at December 31, 2016 $ 504 $ 53 $ 1,777 $ 1,119 $ 1,684 $ 12 $ 195 $ 5,344 Allowance for loan losses: Individually evaluated for loss $ - $ - $ 81 $ 87 $ 89 $ - $ 17 $ 274 Collectively evaluated for loss 504 53 1,696 1,032 1,595 12 178 5,070 Total $ 504 $ 53 $ 1,777 $ 1,119 $ 1,684 $ 12 $ 195 $ 5,344 Loan balances: Individually evaluated for loss $ 780 $ 1,937 $ 2,445 $ 355 $ 881 $ 258 $ 72 $ 6,728 Collectively evaluated for loss 136,066 11,801 115,755 54,151 77,443 3,626 20,199 419,041 Total $ 136,846 $ 13,738 $ 118,200 $ 54,506 $ 78,324 $ 3,884 $ 20,271 $ 425,769 |
Schedule of Impaired Financing Receivables | The following tables present information on impaired loans: As of December 31, 2018 (Dollars in thousands) 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 loans $ 623 $ 623 $ 413 $ 210 $ 100 $ 640 $ 10 Construction and land loans 3,543 1,808 1,383 425 103 2,689 53 Commercial real estate loans 3,912 3,912 2,120 1,792 67 3,928 487 Commercial loans 1,528 1,528 1,446 82 27 1,537 - Agriculture loans 932 717 529 188 13 844 52 Municipal loans 58 58 58 - - 58 1 Consumer loans 45 45 45 - - 49 - Total impaired loans $ 10,641 $ 8,691 $ 5,994 $ 2,697 $ 310 $ 9,745 $ 603 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 loans $ 747 $ 747 $ 503 $ 244 $ 73 $ 774 $ 8 Construction and land loans 3,766 2,031 430 1,601 102 2,033 65 Commercial real estate loans 3,973 3,973 3,888 85 52 3,989 490 Commercial loans 2,002 2,002 11 1,991 391 2,082 - Agriculture loans 1,048 833 545 288 24 912 1 Municipal loans 140 140 140 - - 192 5 Consumer loans 34 34 34 - - 35 - Total impaired loans $ 11,710 $ 9,760 $ 5,551 $ 4,209 $ 642 $ 10,017 $ 569 As of December 31, 2016 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 loans $ 780 $ 780 $ 780 $ - $ - $ 798 $ 7 Construction and land loans 3,672 1,937 1,937 - - 2,068 72 Commercial real estate loans 2,445 2,445 2,145 300 81 2,587 505 Commercial loans 355 355 46 309 87 425 2 Agriculture loans 1,173 881 147 734 89 1,000 2 Municipal loans 258 258 258 - - 418 - Consumer loans 72 72 55 17 17 78 13 Total impaired loans $ 8,755 $ 6,728 $ 5,368 $ 1,360 $ 274 $ 7,374 $ 601 |
Schedule of Past Due Financing Receivables | The following tables present information on the Company’s past due and non-accrual loans by loan class: As of December 31, 2018 (Dollars in thousands) 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 loans $ 131 $ 206 $ - $ 337 $ 442 $ 779 $ 136,116 Construction and land loans - 134 - 134 948 1,082 19,001 Commercial real estate loans 465 - - 465 1,791 2,256 136,711 Commercial loans 398 20 - 418 1,528 1,946 72,343 Agriculture loans 100 88 - 188 482 670 95,962 Municipal loans - - - - - - 2,953 Consumer loans 106 23 - 129 45 174 25,254 Total $ 1,200 $ 471 $ - $ 1,671 $ 5,236 $ 6,907 $ 488,340 Percent of gross loans 0.24 % 0.10 % 0.00 % 0.34 % 1.06 % 1.40 % 98.60 % 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 loans $ 101 $ 313 $ - $ 414 $ 552 $ 966 $ 135,249 Construction and land loans - 4 - 4 779 783 18,573 Commercial real estate loans 22 209 - 231 1,841 2,072 118,552 Commercial loans - 397 - 397 2,002 2,399 52,192 Agriculture loans - - - - 833 833 82,175 Municipal loans - - - - - - 3,396 Consumer loans 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 % 1.37 % 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 December 31, 2018 As of December 31, 2017 (Dollars in thousands) Nonclassified Classified Nonclassified Classified One-to-four family residential real estate loans $ 135,947 $ 948 $ 135,475 $ 740 Construction and land loans 19,135 948 18,577 779 Commercial real estate loans 126,619 12,348 114,736 5,888 Commercial loans 66,490 7,799 52,313 2,278 Agriculture loans 86,917 9,715 76,455 6,553 Municipal loans 2,953 - 3,396 - Consumer loans 25,383 45 22,006 40 Total $ 463,444 $ 31,803 $ 422,958 $ 16,278 |
Schedule of Troubled Debt Restructurings On Financing Receivables | The following table presents information on loans that were classified as TDRs: As of December 31, 2018 As of December 31, 2017 (Dollars in thousands) Number of loans Non-accrual balance Accruing balance Number of loans Non-accrual balance Accruing balance One-to-four family residential real estate loans 2 $ - $ 181 2 $ - $ 195 Construction and land loans 4 523 860 4 575 1,252 Commercial real estate loans 2 - 2,121 3 45 2,132 Commerical loans 1 36 - - - - Agriculture 4 23 235 9 471 - Municipal loans 1 - 58 2 - 140 Total troubled debt restructurings 14 $ 582 $ 3,455 20 $ 1,091 $ 3,719 |
Schedule of Loan to Directors Officers and Affiliated Parties | A summary of such loans is as follows: (Dollars in thousands) Balance at December 31, 2017 $ 14,681 New loans 11,909 Repayments (12,929 ) Balance at December 31, 2018 $ 13,661 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 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: As of December 31, 2018 (Dollars in thousands) Gross carrying amount Accumulated amortization Net carrying amount Core deposit intangible assets $ 2,067 $ (1,588 ) $ 479 Lease intangible asset 350 (233 ) 117 Mortgage servicing rights 6,545 (4,050 ) 2,495 Total other intangible assets $ 8,962 $ (5,871 ) $ 3,091 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 years ending December 31: Amortization (Dollars in thousands) expense 2019 214 2020 177 2021 121 2022 58 2023 26 Total $ 596 |
Schedule of Participating Mortgage Loans | The following table provides information on the principal balances of mortgage loans serviced for others: As of December 31, (Dollars in thousands) 2018 2017 FHLMC $ 521,489 $ 517,863 FHLB 10,603 9,782 |
Schedule of Servicing Asset at Amortized Cost | Activity for mortgage servicing rights and the related valuation allowance follows: As of December 31, (Dollars in thousands) 2018 2017 Mortgage servicing rights: Balance at beginning of year $ 2,811 $ 2,849 Additions 543 931 Amortization (859 ) (969 ) Balance at end of year $ 2,495 $ 2,811 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment consisted of the following: Estimated As of December 31, (Dollars in thousands) useful lives 2018 2017 Land Indefinite $ 6,279 $ 6,279 Office buildings and improvements 10 - 50 years 20,859 19,837 Furniture and equipment 3 - 15 years 7,675 8,589 Automobiles 2 - 5 years 585 554 Total premises and equipment 35,398 35,259 Accumulated depreciation (14,271 ) (14,435 ) Total premises and equipment, net $ 21,127 $ 20,824 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Maturities of Time Deposit | The following table presents the maturities of time deposits at December 31, 2018: (Dollars in thousands) Year Amount 2019 $ 137,638 2020 15,686 2021 4,579 2022 6,332 2023 2,782 Thereafter 3 Total $ 167,020 |
Schedule of Interest Expense Associated with Deposits | The components of interest expense associated with deposits are as follows: Years ended December 31, (Dollars in thousands) 2018 2017 2016 Time deposits $ 1,195 $ 593 $ 650 Money market and checking 1,833 948 458 Savings 28 28 26 Total $ 3,056 $ 1,569 $ 1,134 |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 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: Years ended December 31, (Dollars in thousands) 2018 2017 Average daily balance during the year $ 12,388 $ 12,819 Average interest rate during the year 0.87 % 0.26 % Maximum month-end balance during the year $ 15,246 $ 16,801 Weighted average interest rate at year-end 1.00 % 0.70 % As of December 31, 2018 Overnight and Greater Continuous Up to 30 days 30-90 days than 90 days Total Repurchase agreements: U.S. federal treasury obligations $ 416 $ - $ - $ - $ 416 U.S. federal agency obligations 5,626 - - - 5,626 Agency mortgage-backed securities 9,204 - - - 9,204 Total $ 15,246 $ - $ - $ - $ 15,246 As of December 31, 2017 Overnight and Up to Greater Continuous 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 C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 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. Years ended December 31, (Dollars in thousands) 2018 2017 Non-interest income: Service charges on deposits Overdraft fees $ 3,321 $ 3,571 Other 529 577 Interchange income 1,935 1,681 Loan servicing fees (1) 1,350 1,305 Office lease income (1) 630 604 Gains on sales of loans (1) 5,023 5,390 Bank owned life insurance income (1) 644 912 Gains (losses) on sales of investment securities (1) 20 498 Gains (losses) on sales of real estate owned (58 ) 13 Other 2,177 733 Total non-interest income $ 15,571 $ 15,284 (1) Not within the scope of ASC 606. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) attributable to income from operations consisted of the following: Years ended December 31, (Dollars in thousands) 2018 2017 2016 Current: Federal $ 396 $ (1,108 ) $ 1,298 State (197 ) (276 ) 97 Total current 199 (1,384 ) 1,395 Deferred: Federal 875 768 797 State 155 27 248 Total deferred 1,030 795 1,045 Deferred tax valuation allowance (146 ) 44 (126 ) Deferred tax remeasurement 85 (352 ) - Income tax (benefit) expense $ 1,168 $ (897 ) $ 2,314 |
Schedule of Effective Income Tax Rate Reconciliation | The reasons for the difference between actual income tax expense (benefit) and expected income tax expense attributable to income from operations at the statutory federal income tax rate were as follows: Years ended December 31, (Dollars in thousands) 2018 2017 2016 Computed “expected” tax expense $ 2,435 $ 1,180 $ 3,833 (Reduction) increase in income taxes resulting from: Tax-exempt interest income, net (850 ) (1,346 ) (1,220 ) Deferred tax remeasurement 85 (352 ) - REIT excise tax - 249 - Excess tax benefit from stock option exercise (119 ) (107 ) (283 ) Bank owned life insurance (140 ) (316 ) (177 ) Reversal of unrecognized tax benefits, net (512 ) (197 ) (125 ) State income taxes, net of federal benefit 364 61 269 Investment tax credits (24 ) (7 ) (11 ) Other, net (71 ) (62 ) 28 $ 1,168 $ (897 ) $ 2,314 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to the significant portions of the deferred tax assets and liabilities at the following dates were as follows: As of December 31, (Dollars in thousands) 2018 2017 Deferred tax assets: Federal alternative minimum tax credit and low income housing credit carry forwards $ - $ 2,485 Loans, including allowance for loan losses 1,489 1,419 Net operating loss carry forwards 383 529 State taxes 398 413 Acquisition costs 202 224 Deferred compensation arrangements 78 88 Unrealized loss on investment securities available-for-sale 1,295 132 Investments 33 46 Other, net 26 46 Total deferred tax assets 3,904 5,382 Less valuation allowance (383 ) (529 ) Total deferred tax assets, net of valuation allowance 3,521 4,853 Deferred tax liabilities: Undistributed equity earnings - 1,539 Premises and equipment, net of depreciation 447 454 Mortgage servicing rights 464 470 Prepaid expenses 209 210 Intangible assets 92 12 FHLB stock dividends 56 74 Other borrowings - 35 Total deferred tax liabilities 1,268 2,794 Net deferred tax asset $ 2,253 $ 2,059 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of the liability relating to unrecognized tax benefits is as follows: Years ended December 31, (Dollars in thousands) 2018 2017 Unrecognized tax benefits at beginning of year $ 1,505 $ 1,809 Gross increases to current year tax positions 464 50 Gross decreases to prior year’s tax positions (2 ) (10 ) Lapse of statute of limitations (495 ) (344 ) Unrecognized tax benefits at end of year $ 1,472 $ 1,505 |
Stock Compensation Plan (Tables
Stock Compensation Plan (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Fair Value of Options Assumed | The fair value of the options granted were determined using the following weighted-average assumptions as of the grant date: Years ended December 31, 2018 2017 2016 Risk-free interest rate n/a 2.07 % n/a Expected term n/a 7 years n/a Expected stock price volatility n/a 33.30 % n/a Dividend yield n/a 2.74 % n/a |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of option activity during 2018 is presented below: Weighted Weighted average average exercise remaining Aggregate (Dollars in thousands, except per share amounts) Shares price per share contractual term intrinsic value Outstanding at January 1, 2018 173,448 $ 16.09 2.8 years $ 2,237 Granted - $ - Effect of 5% stock dividend 3,431 $ Forfeited/expired (36,043 ) $ 15.42 Exercised (72,130 ) $ 7.40 Outstanding at December 31, 2018 68,706 $ 17.97 5.1 years $ 462 Exercisable at December 31, 2018 44,159 $ 13.21 3.2 years $ 462 Fully vested options at December 31, 2018 44,159 $ 13.21 3.2 years $ 462 |
Schedule of Stock Option Exercised Additional Information | Additional information about stock options exercised is presented below: (Dollars in thousands) Years ended December 31, 2018 2017 2016 Intrinsic value of options exercised (on exercise date) $ 1,523 $ 279 $ 1,820 Cash received from options exercised 534 228 1,796 Excess tax benefit realized from options exercised $ 136 $ 103 $ 308 |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award | (Dollars in thousands) Year Amount 2019 $ 62 2020 62 2021 36 Total $ 160 |
Restricted Stock [Member] | |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award | (Dollars in thousands) Year Amount 2019 $ 155 2020 92 2021 58 2022 34 Total $ 339 |
Schedule of Nonvested Share Activity | A summary of nonvested restricted common stock activity during 2018 is presented below: Shares Weighted average grant date price per share Nonvested restricted common stock at January 1, 2018 9,834 $ 24.67 Granted 10,780 $ 27.63 Vested (4,605 ) $ 26.16 Effect of 5% stock dividend 791 Nonvested restricted common stock at December 31, 2018 16,800 $ 25.87 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 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 December 31, 2018 and 2017, including methods and assumptions utilized, are set forth below: As of December 31, 2018 Carrying (Dollars in thousands) amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 19,114 $ 19,114 $ - $ - $ 19,114 Investment securities available for sale 388,345 1,971 386,374 - 388,345 Bank stocks, at cost 4,776 n/a n/a n/a n/a Loans, net 489,373 - - 494,473 494,473 Loans held for sale 4,743 - 4,743 - 4,743 Derivative financial instruments 522 - 522 - 522 Accrued interest receivable 4,631 - 2,194 2,437 4,631 Financial liabilities: Non-maturity deposits $ (656,628 ) $ (656,628 ) $ - $ - (656,628 ) Time deposits (167,020 ) - (164,994 ) - (164,994 ) FHLB borrowings (20,000 ) - (20,000 ) - (20,000 ) Subordinated debentures (21,651 ) - (19,678 ) - (19,678 ) Other borrowings (15,246 ) - (15,246 ) - (15,246 ) Accrued interest payable (442 ) - (442 ) - (442 ) Derivative financial instruments (25 ) - (25 ) - (25 ) As of December 31, 2017 Carrying (Dollars in thousands) 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 table represents the Company’s financial instruments that are measured at fair value on a recurring basis at December 31, 2018 and 2017, allocated to the appropriate fair value hierarchy: As of December 31, 2018 Fair value hierarchy (Dollars in thousands) Total Level 1 Level 2 Level 3 Assets: Available-for-sale securities U. S. treasury securities $ 1,971 $ 1,971 $ - $ - U. S. federal agency obligations 10,361 - 10,361 - Municipal obligations, tax exempt 159,112 - 159,112 - Municipal obligations, taxable 53,035 - 53,035 - Agency mortgage-backed securities 156,076 - 156,076 - Certificates of deposit 7,790 - 7,790 - Loans held for sale 4,743 - 4,743 - Derivative financial instruments 522 - 522 - Liabilities: Derivative financial instruments (25 ) - (25 ) - As of December 31, 2017 Fair value hierarchy (Dollars in thousands) Total Level 1 Level 2 Level 3 Assets: Available-for-sale 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 - Common stocks 8 8 - - Certificates of deposit 9,224 - 9,224 - 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 or loss on loans held for sale were as follows: As of December 31, (Dollars in thousands) 2018 2017 Aggregate fair value $ 4,743 $ 6,535 Contractual balance 4,687 6,420 Gain $ 56 $ 115 |
Schedule of Gains and Losses from Changes in Fair Value of Loans Held for Sale | The total amount of gains and losses from changes in fair value of loans held for sale included in earnings were as follows: As of December 31, (Dollars in thousands) 2018 2017 Interest income $ 333 $ 259 Change in fair value (59 ) 78 Total change in fair value $ 274 $ 337 |
Schedule of Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following table represents the Company’s financial instruments that are measured at fair value on a non-recurring basis as of December 31, 2018 and 2017 allocated to the appropriate fair value hierarchy: As of December 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 $ 110 $ - $ - $ 110 $ (29 ) Construction and land 322 - - 322 (103 ) Commercial real estate loans 1,725 - - 1,725 377 Commercial loans 55 - - 55 (51 ) Agriculture loans 175 - - 175 11 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 loans 33 - - 33 12 Commercial loans 1,600 - - 1,600 (304 ) Agriculture loans 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 for impaired loans measure at fair value on a non-recurring basis as of December 31, 2018 and 2017. (Dollars in thousands) Fair value Valuation technique Unobservable inputs Range As of December 31, 2018 Impaired loans: One-to-four family residential real estate $ 110 Sales comparison Adjustment to appraised value 0%-20 % Construction and land 322 Sales comparison Adjustment to appraised value 0%-25 % Commercial real estate 1,725 Sales comparison Adjustment to appraised value 0 % Commercial loans 55 Sales comparison Adjustment to comparable sales 0%-15 % Agriculture loans 175 Sales comparison Adjustment to appraised value 0 % 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 % Commercial real estate 33 Sales comparison Adjustment to appraised value 0%-91 % Commercial loans 1,600 Sales comparison Adjustment to comparable sales 15%-50 % Agriculture loans 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 Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 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 in effect at December 31, 2018 and 2017: For capital Actual adequacy purposes (Dollars in thousands) Amount Ratio Amount Ratio (1) As of December 31, 2018 Leverage $ 99,150 10.34 % $ 38,373 4.0 % Common Equity Tier 1 Capital 78,150 13.12 % 37,982 6.4 % Tier 1 Capital 99,150 16.64 % 46,919 7.9 % Total Risk Based Capital 105,055 17.63 % 58,835 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 percent for capital adequacy purposes includes a capital conservation buffer of 1.875% for December 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 in effect at December 31, 2018 and 2017: To be well-capitalized under prompt For capital corrective Actual adequacy purposes action provisions (Dollars in thousands) Amount Ratio Amount Ratio (1) Amount Ratio As of December 31, 2018 Leverage $ 97,112 10.15 % $ 38,254 4.0 % $ 47,818 5.0 % Common Equity Tier 1 Capital 97,112 16.33 % 37,922 6.4 % 38,665 6.5 % Tier 1 Capital 97,112 16.33 % 46,844 7.9 % 47,588 8.0 % Total Risk Based Capital 103,017 17.32 % 58,741 9.9 % 59,485 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 percent for capital adequacy purposes includes a capital conservation buffer of 1.875% for December 31, 2018 and 1.25% for December 31, 2017. |
Parent Company Condensed Fina_2
Parent Company Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Financial Statements | Condensed Balance Sheets As of December 31, (Dollars in thousands) 2018 2017 Assets: Cash and cash equivalents $ 100 $ 217 Investment securities 237 245 Investment in subsidiaries 112,394 107,443 Other 942 1,261 Total assets $ 113,673 $ 109,166 Liabilities and stockholders' equity: Subordinated debentures $ 21,651 $ 21,484 Other 121 60 Stockholders' equity 91,901 87,622 Total liabilities and stockholders' equity $ 113,673 $ 109,166 Condensed Statements of Earnings Years ended December 31, (Dollars in thousands) 2018 2017 2016 Dividends from Bank $ 3,200 $ 3,700 $ 1,250 Interest income 29 49 59 Gain on sale of investment - 493 324 Other non-interest income 7 7 7 Interest expense (1,078 ) (898 ) (787 ) Other expense, net (325 ) (470 ) (314 ) Earnings before equity in undistributed earnings 1,833 2,881 539 Increase in undistributed equity of Bank 7,567 633 8,171 Increase in undistributed equity of Nonbank subsidiary 740 542 - Earnings before income taxes 10,140 4,056 8,710 Income tax benefit (286 ) (313 ) (251 ) Net earnings 10,426 4,369 8,961 Other comprehensive (loss) income (3,579 ) 1,010 (3,523 ) Total comprehensive income $ 6,847 $ 5,379 $ 5,438 Condensed Statements of Cash Flows Years ended December 31, (Dollars in thousands) 2018 2017 2016 Cash flows from operating activities: Net earnings $ 10,426 $ 4,369 $ 8,961 Increase in undistributed equity of subsidiaries (8,307 ) (1,175 ) (8,171 ) Amortization of purchase accounting adjustment on subordinated debentures 167 200 200 Gain on sale of investment - (493 ) (324 ) Other 381 (543 ) (112 ) Net cash provided by operating activities 2,667 2,358 554 Cash flows from investing activities: Investment in subsidiary - (250 ) - Proceeds from sales of investments 7 967 445 Net cash provided by investing activities 7 717 445 Cash flows from financing activities: Proceeds from exercise of stock options 534 228 1,796 Proceeds from other borrowings - 100 - Repayments on other borrowings - (100 ) - Payment of dividends (3,325 ) (3,108 ) (2,912 ) Net cash used in financing activities (2,791 ) (2,880 ) (1,116 ) Net (decrease)increase in cash (117 ) 195 (117 ) Cash at beginning of year 217 22 139 Cash at end of year $ 100 $ 217 $ 22 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax examination, likelihood of unfavorable settlement | greater than 50 percent likelihood | ||
Diluted earning per shares excluded unexercised stock option | 30,859 | ||
Stock dividend percentage | 5.00% | 5.00% | 5.00% |
Accounting Standards Update 2016-09 [Member] | |||
Employee service share-based compensation, decreased tax benefit realized from exercise of stock options | $ 136 | $ 103 | $ 308 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Accounting Policies [Abstract] | ||||
Net earnings available to common shareholders | $ 10,426 | $ 4,369 | $ 8,961 | |
Weighted average common shares outstanding - basic | 4,350,671 | 4,268,556 | 4,196,949 | |
Assumed exercise of stock options | 15,151 | 74,172 | 71,996 | |
Weighted average common shares outstanding - diluted | 4,365,822 | 4,342,728 | 4,268,945 | |
Basic | [1] | $ 2.40 | $ 1.02 | $ 2.13 |
Diluted | [1] | $ 2.39 | $ 1.01 | $ 2.10 |
[1] | All per share amounts have been adjusted to give effect to the 5% stock dividends paid during December 2018, 2017 and 2016. |
Impact of Recent Accounting P_2
Impact of Recent Accounting Pronouncements (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax federal corporate tax rate description | On December 22, 2017, H.R.1, commonly known as the Tax Cuts and Jobs Act (the "Act"), was signed into law. Among other things, the Act reduced our corporate federal tax rate from 34% to 21% effective January 1, 2018. | |
Federal statutory income tax rate, percent | 21.00% | |
Retained earnings | $ 32,073 | $ 30,214 |
Accounting Standards Update 2018-02 [Member] | ||
Income tax federal corporate tax rate description | On December 22, 2017, the Tax Cuts and Jobs Act of 2017 was signed into law, which among other things reduced the maximum federal corporate tax rate from 35% to 21%. | |
Federal statutory income tax rate, percent | 21.00% | |
Retained earnings | $ 67 |
Investment Securities (Details
Investment Securities (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Security owned and pledged as collateral, fair value, total | $ 249,700 | $ 232,500 | |
Equity method investment, ownership percentage | 10.00% | ||
Proceeds from sales of remaining common stock | $ 7 |
Investment Securities - Schedul
Investment Securities - Schedule of Available-for-sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 393,631 | $ 388,520 |
Gross unrealized gains | 829 | 2,486 |
Gross unrealized losses | (6,115) | (3,023) |
Estimated fair value | 388,345 | 387,983 |
US Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 1,999 | 1,999 |
Gross unrealized gains | ||
Gross unrealized losses | (28) | (9) |
Estimated fair value | 1,971 | 1,990 |
US Federal Agency Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 10,370 | 16,572 |
Gross unrealized gains | 32 | 5 |
Gross unrealized losses | (41) | (85) |
Estimated fair value | 10,361 | 16,492 |
Municipal Obligations, Tax Exempt [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 161,529 | 183,846 |
Gross unrealized gains | 353 | 1,972 |
Gross unrealized losses | (2,770) | (1,080) |
Estimated fair value | 159,112 | 184,738 |
Municipal Obligations, Taxable [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 53,178 | 57,783 |
Gross unrealized gains | 180 | 409 |
Gross unrealized losses | (323) | (216) |
Estimated fair value | 53,035 | 57,976 |
Agency Mortgage-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 158,765 | 119,096 |
Gross unrealized gains | 264 | 92 |
Gross unrealized losses | (2,953) | (1,633) |
Estimated fair value | 156,076 | 117,555 |
Certificates of Deposit [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 7,790 | 9,224 |
Gross unrealized gains | ||
Gross unrealized losses | ||
Estimated fair value | $ 7,790 | 9,224 |
Common Stocks [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | ||
Gross unrealized gains | 8 | |
Gross unrealized losses | ||
Estimated fair value | $ 8 |
Investment Securities - Sched_2
Investment Securities - Schedule of Available for Sale Securities Continuous Unrealized Loss Position Fair Value (Details) $ in Thousands | Dec. 31, 2018USD ($)Number | Dec. 31, 2017USD ($)Number |
Debt Securities, Available-for-sale [Line Items] | ||
No. of securities | Number | 490 | 345 |
Fair value, Less than 12 months | $ 74,366 | $ 134,700 |
Unrealized losses, Less than 12 months | (536) | (1,022) |
Fair value, 12 months or longer | 221,001 | 89,790 |
Unrealized losses, 12 months or longer | (5,579) | (2,001) |
Total, Fair value | 295,367 | 224,490 |
Total, Unrealized losses | $ (6,115) | $ (3,023) |
US Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
No. of securities | Number | 1 | 1 |
Fair value, Less than 12 months | $ 1,990 | |
Unrealized losses, Less than 12 months | (9) | |
Fair value, 12 months or longer | 1,971 | |
Unrealized losses, 12 months or longer | (28) | |
Total, Fair value | 1,971 | 1,990 |
Total, Unrealized losses | $ (28) | $ (9) |
US Federal Agency Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
No. of securities | Number | 6 | 14 |
Fair value, Less than 12 months | $ 145 | $ 7,989 |
Unrealized losses, Less than 12 months | (1) | (24) |
Fair value, 12 months or longer | 7,970 | 8,272 |
Unrealized losses, 12 months or longer | (40) | (61) |
Total, Fair value | 8,115 | 16,261 |
Total, Unrealized losses | $ (41) | $ (85) |
Municipal Obligations, Tax Exempt [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
No. of securities | Number | 296 | 178 |
Fair value, Less than 12 months | $ 35,898 | $ 37,299 |
Unrealized losses, Less than 12 months | (367) | (273) |
Fair value, 12 months or longer | 85,921 | 31,930 |
Unrealized losses, 12 months or longer | (2,403) | (807) |
Total, Fair value | 121,819 | 69,229 |
Total, Unrealized losses | $ (2,770) | $ (1,080) |
Municipal Obligations, Taxable [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
No. of securities | Number | 86 | 73 |
Fair value, Less than 12 months | $ 8,293 | $ 18,792 |
Unrealized losses, Less than 12 months | (22) | (96) |
Fair value, 12 months or longer | 28,984 | 9,744 |
Unrealized losses, 12 months or longer | (301) | (120) |
Total, Fair value | 37,277 | 28,536 |
Total, Unrealized losses | $ (323) | $ (216) |
Agency Mortgage-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
No. of securities | Number | 101 | 79 |
Fair value, Less than 12 months | $ 30,030 | $ 68,630 |
Unrealized losses, Less than 12 months | (146) | (620) |
Fair value, 12 months or longer | 96,155 | 39,844 |
Unrealized losses, 12 months or longer | (2,807) | (1,013) |
Total, Fair value | 126,185 | 108,474 |
Total, Unrealized losses | $ (2,953) | $ (1,633) |
Investment Securities - Sched_3
Investment Securities - Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost, Due in less than one year | $ 34,943 | |
Amortized cost, Due after one year but within five years | 177,050 | |
Amortized cost, Due after five years but within ten years | 103,823 | |
Amortized cost, Due after ten years | 77,815 | |
Amortized cost, Total | 393,631 | $ 388,520 |
Estimated fair value, Due in less than one year | 34,847 | |
Estimated fair value, Due after one year but within five years | 174,149 | |
Estimated fair value, Due after five years but within ten years | 102,522 | |
Estimated fair value, Due after ten years | 76,827 | |
Estimated fair value, Total | $ 388,345 | $ 387,983 |
Investment Securities - Sched_4
Investment Securities - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Sales proceeds | $ 21,126 | $ 13,810 | $ 14,326 |
Realized gains | 84 | 522 | 573 |
Realized losses | (64) | (24) | (15) |
Net realized gains | $ 20 | $ 498 | $ 558 |
Bank Stocks (Details Narrative)
Bank Stocks (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Bank Stocks | ||
Federal home loan bank stock | $ 2,800 | $ 3,400 |
Federal reserve bank stock | 1,900 | 1,900 |
Other assets, miscellaneous | $ 111 | $ 111 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impaired financing receivable loan balance charged off | $ 8,700 | |||
Nonaccrual loans , interest earned | 254 | $ 185 | $ 75 | |
Loans and leases receivable, gross, total | 495,247 | 439,236 | 425,769 | |
Loans and leases receivable, impaired, commitment to lend | 10 | |||
Loans and leases receivable, allowance | 5,765 | 5,459 | (5,344) | $ (5,922) |
Residential Real Estate [Member] | ||||
Commercial agricultural loans receivable, gross | 10 | |||
Commercial real estate loans receivable, gross | 25 | 188 | ||
Commercial Real Estate Loans [Member] | ||||
Commercial real estate loans receivable, gross | 11 | |||
Agriculture Loans [Member] | ||||
Impaired financing receivable loan balance charged off | 215 | |||
Loans and leases receivable, gross, total | 96,632 | 83,008 | 78,324 | |
Loans and leases receivable, allowance | (2,238) | (1,812) | (1,684) | $ (1,428) |
Consumer Loans [Member] | ||||
Loans and leases receivable, gross, total | 25,428 | 22,046 | ||
Commercial real estate loans receivable, gross | 8 | |||
Trouble Debt Restructurings [Member] | ||||
Impaired financing receivable loan balance charged off | 11 | 215 | ||
Loans and leases receivable, gross, total | 4,000 | 4,800 | ||
Commercial agricultural loans receivable, gross | 36 | |||
Provision for loan losses reversal | 117 | 47 | 16 | |
Trouble Debt Restructurings [Member] | Agriculture Loans [Member] | ||||
Commercial agricultural loans receivable, gross | 64 | 104 | ||
Loans and leases receivable, allowance | $ 10 | 127 | ||
Trouble Debt Restructurings [Member] | Four Agriculture Loans [Member] | ||||
Commercial agricultural loans receivable, gross | 98 | |||
Trouble Debt Restructurings [Member] | Three Agriculture Loans [Member] | ||||
Commercial agricultural loans receivable, gross | $ 268 | |||
Maximum [Member] | ||||
Impaired financing receivable loan balance charged off | 1,100 | |||
Minimum [Member] | ||||
Impaired financing receivable loan balance charged off | $ 9,800 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Schedule of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Total gross loans | $ 495,247 | $ 439,236 | $ 425,769 | |
Net deferred loan costs and loans in process | (109) | (34) | ||
Allowance for loan losses | (5,765) | (5,459) | 5,344 | $ 5,922 |
Loans, net | 489,373 | 433,743 | ||
One-to-Four Family Residential Real Estate Loans [Member] | ||||
Total gross loans | 136,895 | 136,215 | 136,846 | |
Allowance for loan losses | 449 | 542 | 504 | 925 |
Construction and Land Loan [Member] | ||||
Total gross loans | 20,083 | 19,356 | 13,738 | |
Allowance for loan losses | 168 | 181 | 53 | 77 |
Commercial Real Estate Loans [Member] | ||||
Total gross loans | 138,967 | 120,624 | 118,200 | |
Allowance for loan losses | 1,686 | 1,540 | 1,777 | 1,740 |
Commercial Loans [Member] | ||||
Total gross loans | 74,289 | 54,591 | ||
Agriculture Loans [Member] | ||||
Total gross loans | 96,632 | 83,008 | 78,324 | |
Allowance for loan losses | 2,238 | 1,812 | 1,684 | 1,428 |
Municipal Loans [Member] | ||||
Total gross loans | 2,953 | 3,396 | 3,884 | |
Allowance for loan losses | 7 | 8 | $ 12 | $ 23 |
Consumer Loans [Member] | ||||
Total gross loans | $ 25,428 | $ 22,046 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Schedule of Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Balance | $ (5,459) | $ 5,344 | $ 5,922 | |||
Charge-offs | (1,160) | (488) | (1,166) | |||
Recoveries | 66 | 153 | 88 | |||
Provision for loan losses | 1,400 | 450 | 500 | |||
Balance | (5,765) | (5,459) | 5,344 | |||
Individually evaluated for loss | $ 310 | $ 642 | $ 274 | |||
Collectively evaluated for loss | 5,455 | 4,817 | 5,070 | |||
Total | (5,459) | (5,459) | 5,344 | (5,765) | (5,459) | 5,344 |
Individually evaluated for loss | 8,691 | 9,760 | 6,728 | |||
Collectively evaluated for loss | 486,556 | 429,476 | 419,041 | |||
Loans and Leases Receivable, Gross, Total | 495,247 | 439,236 | 425,769 | |||
One-to-Four Family Residential Real Estate Loans [Member] | ||||||
Balance | 542 | 504 | 925 | |||
Charge-offs | (32) | (37) | (14) | |||
Recoveries | 4 | 11 | 9 | |||
Provision for loan losses | (65) | 64 | (416) | |||
Balance | 449 | 542 | 504 | |||
Individually evaluated for loss | 100 | 73 | ||||
Collectively evaluated for loss | 349 | 469 | 504 | |||
Total | 542 | 542 | 504 | 449 | 542 | 504 |
Individually evaluated for loss | 623 | 747 | 780 | |||
Collectively evaluated for loss | 136,272 | 135,468 | 136,066 | |||
Loans and Leases Receivable, Gross, Total | 136,895 | 136,215 | 136,846 | |||
Construction and Land Loan [Member] | ||||||
Balance | 181 | 53 | 77 | |||
Charge-offs | ||||||
Recoveries | ||||||
Provision for loan losses | (13) | 128 | (24) | |||
Balance | 168 | 181 | 53 | |||
Individually evaluated for loss | 103 | 102 | ||||
Collectively evaluated for loss | 65 | 79 | 53 | |||
Total | 181 | 181 | 53 | 168 | 181 | 53 |
Individually evaluated for loss | 1,808 | 2,031 | 1,937 | |||
Collectively evaluated for loss | 18,275 | 17,325 | 11,801 | |||
Loans and Leases Receivable, Gross, Total | 20,083 | 19,356 | 13,738 | |||
Commercial Real Estate Loans [Member] | ||||||
Balance | 1,540 | 1,777 | 1,740 | |||
Charge-offs | (71) | |||||
Recoveries | 1 | |||||
Provision for loan losses | 145 | (166) | 37 | |||
Balance | 1,686 | 1,540 | 1,777 | |||
Individually evaluated for loss | 67 | 52 | 81 | |||
Collectively evaluated for loss | 1,619 | 1,488 | 1,696 | |||
Total | 1,540 | 1,540 | 1,777 | 1,686 | 1,540 | 1,777 |
Individually evaluated for loss | 3,912 | 3,973 | 2,445 | |||
Collectively evaluated for loss | 135,055 | 116,651 | 115,755 | |||
Loans and Leases Receivable, Gross, Total | 138,967 | 120,624 | 118,200 | |||
Commercial Loans [Member] | ||||||
Balance | 1,226 | 1,119 | 1,530 | |||
Charge-offs | (950) | (306) | ||||
Recoveries | 22 | 20 | 34 | |||
Provision for loan losses | 753 | 87 | (139) | |||
Balance | 1,051 | 1,226 | 1,119 | |||
Individually evaluated for loss | 27 | 391 | 87 | |||
Collectively evaluated for loss | 1,024 | 835 | 1,032 | |||
Total | 1,051 | 1,226 | 1,119 | 1,051 | 1,226 | 1,119 |
Individually evaluated for loss | 1,528 | 2,002 | 355 | |||
Collectively evaluated for loss | 72,761 | 52,589 | 54,151 | |||
Loans and Leases Receivable, Gross, Total | 74,289 | 54,591 | 54,506 | |||
Agriculture Loans [Member] | ||||||
Balance | 1,812 | 1,684 | 1,428 | |||
Charge-offs | (45) | (375) | ||||
Recoveries | 1 | 1 | ||||
Provision for loan losses | 425 | 172 | 631 | |||
Balance | 2,238 | 1,812 | 1,684 | |||
Individually evaluated for loss | 13 | 24 | 89 | |||
Collectively evaluated for loss | 2,225 | 1,788 | 1,595 | |||
Total | 1,812 | 1,812 | 1,684 | 2,238 | 1,812 | 1,684 |
Individually evaluated for loss | 717 | 833 | 881 | |||
Collectively evaluated for loss | 95,915 | 82,175 | 77,443 | |||
Loans and Leases Receivable, Gross, Total | 96,632 | 83,008 | 78,324 | |||
Municipal Loans [Member] | ||||||
Balance | 8 | 12 | 23 | |||
Charge-offs | ||||||
Recoveries | 2 | 37 | 6 | |||
Provision for loan losses | (3) | (41) | (17) | |||
Balance | 7 | 8 | 12 | |||
Individually evaluated for loss | ||||||
Collectively evaluated for loss | 7 | 8 | 12 | |||
Total | 8 | 8 | 12 | 7 | 8 | 12 |
Individually evaluated for loss | 58 | 140 | 258 | |||
Collectively evaluated for loss | 2,895 | 3,256 | 3,626 | |||
Loans and Leases Receivable, Gross, Total | 2,953 | 3,396 | 3,884 | |||
Consumer Loans [Member] | ||||||
Balance | 150 | 195 | 199 | |||
Charge-offs | (178) | (335) | (471) | |||
Recoveries | 36 | 84 | 39 | |||
Provision for loan losses | 158 | 206 | 428 | |||
Balance | 166 | 150 | 195 | |||
Individually evaluated for loss | 17 | |||||
Collectively evaluated for loss | 166 | 150 | 178 | |||
Total | $ 166 | $ 195 | $ 195 | 166 | 150 | 195 |
Individually evaluated for loss | 45 | 34 | 72 | |||
Collectively evaluated for loss | 25,383 | 22,012 | 20,199 | |||
Loans and Leases Receivable, Gross, Total | $ 25,428 | $ 22,046 | $ 20,271 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Schedule of Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unpaid contractual principal | $ 10,641 | $ 11,710 | $ 8,755 |
Impaired loan balance | 8,691 | 9,760 | 6,728 |
Impaired loans without an allowance | 5,994 | 5,551 | 5,368 |
Impaired loans with an allowance | 2,697 | 4,209 | 1,360 |
Related allowance recorded | 310 | 642 | 274 |
Year-to-date average loan balance | 9,745 | 10,017 | 7,374 |
Year-to-date interest income recognized | 603 | 569 | 601 |
One-to-Four Family Residential Real Estate Loans [Member] | |||
Unpaid contractual principal | 623 | 747 | 780 |
Impaired loan balance | 623 | 747 | 780 |
Impaired loans without an allowance | 413 | 503 | 780 |
Impaired loans with an allowance | 210 | 244 | |
Related allowance recorded | 100 | 73 | |
Year-to-date average loan balance | 640 | 774 | 798 |
Year-to-date interest income recognized | 10 | 8 | 7 |
Construction and Land Loan [Member] | |||
Unpaid contractual principal | 3,543 | 3,766 | 3,672 |
Impaired loan balance | 1,808 | 2,031 | 1,937 |
Impaired loans without an allowance | 1,383 | 430 | 1,937 |
Impaired loans with an allowance | 425 | 1,601 | |
Related allowance recorded | 103 | 102 | |
Year-to-date average loan balance | 2,689 | 2,033 | 2,068 |
Year-to-date interest income recognized | 53 | 65 | 72 |
Commercial Real Estate Loans [Member] | |||
Unpaid contractual principal | 3,912 | 3,973 | 2,445 |
Impaired loan balance | 3,912 | 3,973 | 2,445 |
Impaired loans without an allowance | 2,120 | 3,888 | 2,145 |
Impaired loans with an allowance | 1,792 | 85 | 300 |
Related allowance recorded | 67 | 52 | 81 |
Year-to-date average loan balance | 3,928 | 3,989 | 2,587 |
Year-to-date interest income recognized | 487 | 490 | 505 |
Commercial Loans [Member] | |||
Unpaid contractual principal | 1,528 | 2,002 | 355 |
Impaired loan balance | 1,528 | 2,002 | 355 |
Impaired loans without an allowance | 1,446 | 11 | 46 |
Impaired loans with an allowance | 82 | 1,991 | 309 |
Related allowance recorded | 27 | 391 | 87 |
Year-to-date average loan balance | 1,537 | 2,082 | 425 |
Year-to-date interest income recognized | 2 | ||
Agriculture Loans [Member] | |||
Unpaid contractual principal | 932 | 1,048 | 1,173 |
Impaired loan balance | 717 | 833 | 881 |
Impaired loans without an allowance | 529 | 545 | 147 |
Impaired loans with an allowance | 188 | 288 | 734 |
Related allowance recorded | 13 | 24 | 89 |
Year-to-date average loan balance | 844 | 912 | 1,000 |
Year-to-date interest income recognized | 52 | 1 | 2 |
Municipal Loans [Member] | |||
Unpaid contractual principal | 58 | 140 | 258 |
Impaired loan balance | 58 | 140 | 258 |
Impaired loans without an allowance | 58 | 140 | 258 |
Impaired loans with an allowance | |||
Related allowance recorded | |||
Year-to-date average loan balance | 58 | 192 | 418 |
Year-to-date interest income recognized | 1 | 5 | |
Consumer Loans [Member] | |||
Unpaid contractual principal | 45 | 34 | 72 |
Impaired loan balance | 45 | 34 | 72 |
Impaired loans without an allowance | 45 | 34 | 55 |
Impaired loans with an allowance | 17 | ||
Related allowance recorded | 17 | ||
Year-to-date average loan balance | 49 | 35 | 78 |
Year-to-date interest income recognized | $ 13 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Schedule of Past Due Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment, Past Due | $ 488,340 | $ 431,840 |
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 1,671 | 1,355 |
Loans, Non-accrual loans | 5,236 | 6,041 |
Loan, Total past due and non-accrual loans | 6,907 | 7,396 |
Loan, Total loans not past due | $ 488,340 | $ 431,840 |
Percent of gross loans, 30-59 days delinquent and accruing | 0.24% | 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 | 0.34% | 0.31% |
Percent of gross loans, Non-accrual loans | 1.06% | 1.37% |
Percentage of Total past due and non-accrual loans | 1.40% | 1.68% |
Percentage of Total loans not past due | 98.60% | 98.32% |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | $ 72,343 | $ 52,192 |
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 418 | 397 |
Loans, Non-accrual loans | 1,528 | 2,002 |
Loan, Total past due and non-accrual loans | 1,946 | 2,399 |
Loan, Total loans not past due | 72,343 | 52,192 |
Agriculture Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 95,962 | 82,175 |
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 188 | |
Loans, Non-accrual loans | 482 | 833 |
Loan, Total past due and non-accrual loans | 670 | 833 |
Loan, Total loans not past due | 95,962 | 82,175 |
Municipal Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 2,953 | 3,396 |
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 | 2,953 | 3,396 |
Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 25,254 | 21,703 |
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 39 | 309 |
Loans, Non-accrual loans | 45 | 34 |
Loan, Total past due and non-accrual loans | 174 | 343 |
Loan, Total loans not past due | 25,254 | 21,703 |
30-59 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 1,200 | 228 |
Loan, Total loans not past due | 1,200 | 228 |
30-59 Days Delinquent and Accruing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 398 | |
Loan, Total loans not past due | 398 | |
30-59 Days Delinquent and Accruing [Member] | Agriculture Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 100 | |
Loan, Total loans not past due | 100 | |
30-59 Days Delinquent and Accruing [Member] | Municipal Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loan, Total loans not past due | ||
60-89 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 471 | 1,127 |
Loan, Total loans not past due | 471 | 1,127 |
60-89 Days Delinquent and Accruing [Member] | Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 20 | |
Loan, Total loans not past due | 20 | |
60-89 Days Delinquent and Accruing [Member] | Agriculture Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 88 | |
Loan, Total loans not past due | 88 | |
60-89 Days Delinquent and Accruing [Member] | Municipal Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loan, Total loans not past due | ||
60-89 Days Delinquent and Accruing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 23 | 204 |
Loan, Total loans not past due | 23 | 204 |
One-to-Four Family Residential Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 136,116 | 135,249 |
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 337 | 414 |
Loans, Non-accrual loans | 442 | 552 |
Loan, Total past due and non-accrual loans | 779 | 966 |
Loan, Total loans not past due | 136,116 | 135,249 |
One-to-Four Family Residential Real Estate Loans [Member] | 30-59 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 131 | 101 |
Loan, Total loans not past due | 131 | 101 |
One-to-Four Family Residential Real Estate Loans [Member] | 60-89 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 206 | 313 |
Loan, Total loans not past due | 206 | 313 |
Construction and Land Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 19,001 | 18,573 |
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 134 | 4 |
Loans, Non-accrual loans | 948 | 779 |
Loan, Total past due and non-accrual loans | 1,082 | 783 |
Loan, Total loans not past due | 19,001 | 18,573 |
Construction and Land Loan [Member] | 30-59 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loan, Total loans not past due | ||
Construction and Land Loan [Member] | 60-89 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 134 | 4 |
Loan, Total loans not past due | 134 | 4 |
Commercial Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 136,711 | 118,552 |
Loans, 90 days or more delinquent and accruing | ||
Loans, Total past due loans accruing | 465 | 231 |
Loans, Non-accrual loans | 1,791 | 1,841 |
Loan, Total past due and non-accrual loans | 2,256 | 2,072 |
Loan, Total loans not past due | 136,711 | 118,552 |
Commercial Real Estate Loans [Member] | 30-59 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 465 | 22 |
Loan, Total loans not past due | 465 | 22 |
Commercial Real Estate Loans [Member] | 60-89 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 209 | |
Loan, Total loans not past due | 209 | |
Consumer Loans [Member] | 30-59 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 106 | 105 |
Loan, Total loans not past due | $ 106 | 105 |
Commercial Loans [Member] | 30-59 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loan, Total loans not past due | ||
Commercial Loans [Member] | 60-89 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | 397 | |
Loan, Total loans not past due | 397 | |
Agriculture Loans [Member] | 30-59 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loan, Total loans not past due | ||
Municipal Loans [Member] | 30-59 Days Delinquent and Accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due | ||
Loan, Total loans not past due |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Schedule of Risk Categories by Loan Class (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable, Gross, Total | $ 495,247 | $ 439,236 | $ 425,769 |
One-to-Four Family Residential Real Estate Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 136,895 | 136,215 | 136,846 |
Construction and Land Loan [Member] | |||
Loans and Leases Receivable, Gross, Total | 20,083 | 19,356 | 13,738 |
Commercial Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 74,289 | 54,591 | |
Agriculture Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 96,632 | 83,008 | 78,324 |
Municipal Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 2,953 | 3,396 | $ 3,884 |
Consumer Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 25,428 | 22,046 | |
Loans Receivables Non Classified [Member] | |||
Loans and Leases Receivable, Gross, Total | 463,444 | 422,958 | |
Loans Receivables Non Classified [Member] | One-to-Four Family Residential Real Estate Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 135,947 | 135,475 | |
Loans Receivables Non Classified [Member] | Construction and Land Loan [Member] | |||
Loans and Leases Receivable, Gross, Total | 19,135 | 18,577 | |
Loans Receivables Non Classified [Member] | Commercial Real Estate Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 126,619 | 114,736 | |
Loans Receivables Non Classified [Member] | Commercial Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 66,490 | 52,313 | |
Loans Receivables Non Classified [Member] | Agriculture Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 86,917 | 76,455 | |
Loans Receivables Non Classified [Member] | Municipal Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 2,953 | 3,396 | |
Loans Receivables Non Classified [Member] | Consumer Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 25,383 | 22,006 | |
Loans Receivables Classified [Member] | |||
Loans and Leases Receivable, Gross, Total | 31,803 | 16,278 | |
Loans Receivables Classified [Member] | One-to-Four Family Residential Real Estate Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 948 | 740 | |
Loans Receivables Classified [Member] | Construction and Land Loan [Member] | |||
Loans and Leases Receivable, Gross, Total | 948 | 779 | |
Loans Receivables Classified [Member] | Commercial Real Estate Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 12,348 | 5,888 | |
Loans Receivables Classified [Member] | Commercial Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 7,799 | 2,278 | |
Loans Receivables Classified [Member] | Agriculture Loans [Member] | |||
Loans and Leases Receivable, Gross, Total | 9,715 | 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 | $ 45 | $ 40 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructurings on Financing Receivables (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Number | Dec. 31, 2017USD ($)Number | |
One-to-Four Family Residential Real Estate 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 | $ 181 | $ 195 |
Construction and Land Loan [Member] | ||
Troubled debt restructurings, Number of loans | Number | 4 | 4 |
Financing receivable, modifications, recorded investment, non accrual balance | $ 523 | $ 575 |
Financing receivable, modifications, recorded investment, accruing balance | $ 860 | $ 1,252 |
Commercial Real Estate Loans [Member] | ||
Troubled debt restructurings, Number of loans | Number | 2 | 3 |
Financing receivable, modifications, recorded investment, non accrual balance | $ 45 | |
Financing receivable, modifications, recorded investment, accruing balance | $ 2,121 | $ 2,132 |
Commercial Loans [Member] | ||
Troubled debt restructurings, Number of loans | Number | 1 | |
Financing receivable, modifications, recorded investment, non accrual balance | $ 36 | |
Financing receivable, modifications, recorded investment, accruing balance | ||
Agriculture Loans [Member] | ||
Troubled debt restructurings, Number of loans | Number | 4 | |
Municipal Loans [Member] | ||
Troubled debt restructurings, Number of loans | Number | 1 | 2 |
Financing receivable, modifications, recorded investment, non accrual balance | ||
Financing receivable, modifications, recorded investment, accruing balance | $ 58 | $ 140 |
TDR [Member] | ||
Troubled debt restructurings, Number of loans | Number | 14 | 20 |
Financing receivable, modifications, recorded investment, non accrual balance | $ 582 | $ 1,091 |
Financing receivable, modifications, recorded investment, accruing balance | 3,455 | $ 3,719 |
Agriculture Loans [Member] | ||
Troubled debt restructurings, Number of loans | Number | 9 | |
Financing receivable, modifications, recorded investment, non accrual balance | 23 | $ 471 |
Financing receivable, modifications, recorded investment, accruing balance | $ 235 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Schedule of Loan to Directors Officers and Affiliated Parties (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Receivables [Abstract] | |
Balance | $ 14,681 |
New loans | 11,909 |
Repayments | (12,929) |
Balance | $ 13,661 |
Loan Commitments (Details Narra
Loan Commitments (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Loan Commitments [Abstract] | ||
Letters of credit outstanding, amount | $ 86,700 | $ 87,600 |
Standby letters of credit | $ 1,400 | $ 806 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 1.37% | 2.26% | |
Mortgage Loans Serviced [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Escrow deposit | $ 4,500 | $ 4,400 | |
Interest and fee income, other loans | 1,400 | 1,300 | $ 1,200 |
Servicing asset at fair value, amount | $ 6,200 | $ 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 | 22.40% | 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 Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | $ 8,962 | $ 8,702 |
Intangible assets, Accumulated amortization | (5,871) | (5,043) |
Intangible assets, Net carrying amount | 3,091 | 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 | (1,588) | (1,381) |
Intangible assets, Net carrying amount | 479 | 686 |
Lease Intangible Asset [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | 350 | 350 |
Intangible assets, Accumulated amortization | (233) | (188) |
Intangible assets, Net carrying amount | 117 | 162 |
Mortgage Servicing Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Gross carrying amount | 6,545 | 6,285 |
Intangible assets, Accumulated amortization | (4,050) | (3,474) |
Intangible assets, Net carrying amount | $ 2,495 | $ 2,811 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Finite-lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2019 | $ 214 |
2020 | 177 |
2021 | 121 |
2022 | 58 |
2023 | 26 |
Total | $ 596 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Participating Mortgage Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate, face amount of mortgages | $ 521,489 | $ 517,863 |
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||
Mortgage loans on real estate, face amount of mortgages | $ 10,603 | $ 9,782 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Schedule of Servicing Asset at Amortized Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance at beginning of year | $ 2,811 | $ 2,849 |
Additions | 543 | 931 |
Amortization | (859) | (969) |
Balance at end of year | $ 2,495 | $ 2,811 |
Premises and Equipment (Details
Premises and Equipment (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 1,005 | $ 1,030 | $ 1,144 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Land | $ 6,279 | $ 6,279 |
Office buildings and improvements | 20,859 | 19,837 |
Furniture and equipment | 7,675 | 8,589 |
Automobiles | 585 | 554 |
Total premises and equipment | 35,398 | 35,259 |
Accumulated depreciation | (14,271) | (14,435) |
Total premises and equipment, net | $ 21,127 | $ 20,824 |
Land [Member] | ||
Premises and equipment, estimated useful lives description | Indefinite | |
Office Buildings and Improvements [Member] | Minimum [Member] | ||
Premises and equipment, estimated useful lives | 10 years | |
Office Buildings and Improvements [Member] | Maximum [Member] | ||
Premises and equipment, estimated useful lives | 50 years | |
Furniture and Equipment [Member] | Minimum [Member] | ||
Premises and equipment, estimated useful lives | 3 years | |
Furniture and Equipment [Member] | Maximum [Member] | ||
Premises and equipment, estimated useful lives | 15 years | |
Automobiles [Member] | Minimum [Member] | ||
Premises and equipment, estimated useful lives | 2 years | |
Automobiles [Member] | Maximum [Member] | ||
Premises and equipment, estimated useful lives | 5 years |
Deposits (Details Narrative)
Deposits (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Banking and Thrift [Abstract] | ||
Time deposits in denominations during the period | Aggregate amount of time deposits in denominations of $250,000 | |
Time deposits in denominations of $250,000 or more | $ 14,200 | $ 19,200 |
Brokered time deposits | $ 61,900 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
2019 | $ 137,638 | |
2020 | 15,686 | |
2021 | 4,579 | |
2022 | 6,332 | |
2023 | 2,782 | |
Thereafter | 3 | |
Total | $ 167,020 | $ 123,277 |
Deposits - Schedule of Interest
Deposits - Schedule of Interest Expense Associated with Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |||
Time deposits | $ 1,195 | $ 593 | $ 650 |
Money market and checking | 1,833 | 948 | 458 |
Savings | 28 | 28 | 26 |
Total | $ 3,056 | $ 1,569 | $ 1,134 |
Federal Home Loan Bank Borrow_2
Federal Home Loan Bank Borrowings (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Advances from federal home loan banks | $ 25,000 | |
Federal Home Loan Bank Advances [Member] | ||
Long-term line of credit | $ 20,000 | 6,600 |
Line of credit, description | The federal funds rate plus 0.15% (2.65% at December 31, 2018). | |
Line of credit accrued interest rate | 2.65% | |
Debt instrument, collateral amount | $ 156,900 | 130,600 |
Debt instrument maximum borrowing capacity amount | 115,300 | 97,500 |
Debt instrument, unused borrowing capacity, amount | $ 85,000 | $ 55,600 |
Federal Home Loan Bank Advances [Member] | Federal Funds Rate [Member] | ||
Debt variable rate | 0.15% |
Subordinated Debentures (Detail
Subordinated Debentures (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2013 | Dec. 31, 2005 | Dec. 31, 2003 | |
Subordinated Debentures 2003 [Member] | |||||
Proceeds from issuance of debt | $ 8,200 | ||||
Debt instruments, due date, year | 2034 | ||||
Debt instrument, description of variable rate basis | Interest accrues at three month LIBOR plus 2.85%. | ||||
Subordinated borrowing, interest rate | 5.37% | 4.23% | |||
Subordinated Debentures 2003 [Member] | LIBOR [Member] | |||||
Debt variable rate | 2.85% | ||||
Subordinated Debentures 2005 [Member] | |||||
Proceeds from issuance of debt | $ 8,200 | ||||
Debt instruments, due date, year | 2036 | ||||
Debt instrument, description of variable rate basis | Interest accrues at three month LIBOR plus 1.34%. | ||||
Subordinated borrowing, interest rate | 4.13% | 2.93% | |||
Subordinated Debentures 2005 [Member] | LIBOR [Member] | |||||
Debt variable rate | 1.34% | ||||
Subordinated Debentures 2013 [Member] | |||||
Proceeds from issuance of debt | $ 5,200 | ||||
Debt instruments, due date, year | 2036 | ||||
Debt instrument, description of variable rate basis | Interest accrues at three month LIBOR plus 1.62%. | ||||
Subordinated borrowing, interest rate | 4.44% | 3.29% | |||
Debt instrument, effective interest rate | 7.17% | ||||
Subordinated Debentures 2013 [Member] | LIBOR [Member] | |||||
Debt variable rate | 1.62% |
Other Borrowings (Details Narra
Other Borrowings (Details Narrative) - Unrelated Financial Institution [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Line of credit facility, current borrowing capacity | $ 7,500 | |
Line of credit facility maturing date | Nov. 1, 2019 | |
Line of credit facility, interest rate description | Prime rate less 0.25% | |
Line of credit facility maximum borrowing capacity | $ 10,100 | $ 14,500 |
Federal funds purchased | $ 30,000 | $ 30,000 |
Prime Rate [Member] | ||
Debt variable rate | 0.25% |
Repurchase Agreements (Details
Repurchase Agreements (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Customer funds | $ 15,200 | $ 13,500 |
Repurchase Agreements [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Debt instrument, collateral amount | $ 18,600 | $ 16,800 |
Repurchase Agreements - Schedul
Repurchase Agreements - Schedule of Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Average daily balance during the year | $ 12,388 | $ 12,819 |
Average interest rate during the year | 0.87% | 0.26% |
Maximum month-end balance during the year | $ 15,246 | $ 16,801 |
Weighted average interest rate at year-end | 1.00% | 0.70% |
Assets sold under agreements to repurchase, carrying amount | $ 15,246 | $ 13,509 |
Overnight and Continuous [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets sold under agreements to repurchase, carrying amount | 15,246 | 13,509 |
Up to 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 | ||
US Federal Treasury Obligations [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets sold under agreements to repurchase, carrying amount | 416 | |
US Federal Treasury Obligations [Member] | Overnight and Continuous [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets sold under agreements to repurchase, carrying amount | 416 | |
US Federal Treasury Obligations [Member] | Up to 30 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets sold under agreements to repurchase, carrying amount | ||
US Federal Treasury Obligations [Member] | 30 - 90 Days [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Assets sold under agreements to repurchase, carrying amount | ||
US 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 | 5,626 | 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 | 5,626 | 5,147 |
US Federal Agency Obligations [Member] | Up to 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 | 9,204 | 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 | 9,204 | 8,362 |
Agency Mortgage-backed Securities [Member] | Up to 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 C_3
Revenue from Contracts with Customers (Details Narrative) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Increase in other non-interest income | $ 1,500 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Revenue from Contracts with Customers Within Non-interest Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Revenue from Contract with Customer [Abstract] | ||||||
Service charges on deposits overdraft fees | $ 3,321 | $ 3,571 | ||||
Service charges on deposits other | 529 | 577 | ||||
Interchange income | 1,935 | 1,681 | ||||
Loan servicing fees | [1] | 1,350 | 1,305 | |||
Office lease income | [1] | 630 | 604 | |||
Gains on sales of loans | 5,023 | [1] | 5,390 | [1] | $ 5,476 | |
Bank owned life insurance income | 644 | [1] | 912 | [1] | 508 | |
Gains (losses) on sales of investment securities | [1] | 20 | 498 | |||
Gains (losses) on sales of real estate owned | (58) | 13 | ||||
Other | 2,177 | 733 | ||||
Total non-interest income | $ 15,571 | $ 15,284 | $ 14,850 | |||
[1] | Not within the scope of ASC 606. |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | Dec. 22, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||||
Income tax reconciliation description | On December 22, 2017, H.R.1, commonly known as the Tax Cuts and Jobs Act (the "Act"), was signed into law. Among other things, the Act reduced our corporate federal tax rate from 34% to 21% effective January 1, 2018. | |||
Statutory federal income tax rate | 21.00% | |||
Deferred tax re-measurement | $ 85 | $ (352) | ||
Reclassification of certain tax effects from accumulated other comprehensive income | 67 | |||
Revised corporate federal rate | 21.00% | |||
Net operating loss carryforwards | $ 6,600 | 9,100 | ||
Net operating loss carryforward expiration | Expire between 2019 and 2027 | |||
Cumulative effect on retained earnings, tax | $ 6,300 | 6,300 | ||
Unrecognized tax benefits | 495 | 344 | ||
Unrecognized tax benefits gross | 1,472 | 1,505 | 1,809 | |
Unrecognized tax benefits that would impact effective tax rate | 1,200 | |||
Income tax examination, penalties and interest expense, total | 119 | 30 | $ 84 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 331 | $ 450 | ||
Reduction in unrecognized tax benefits | $ 608 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current Federal | $ 396 | $ (1,108) | $ 1,298 |
Current State | (197) | (276) | 97 |
Total current | 199 | (1,384) | 1,395 |
Deferred Federal | 875 | 768 | 797 |
Deferred State | 155 | 27 | 248 |
Total deferred | 1,030 | 795 | 1,045 |
Deferred tax valuation allowance | (146) | 44 | (126) |
Deferred tax remeasurement | 85 | (352) | |
Income tax (benefit) expense | $ 1,168 | $ (897) | $ 2,314 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Computed "expected" tax expense | $ 2,435 | $ 1,180 | $ 3,833 |
Tax-exempt interest income, net | (850) | (1,346) | (1,220) |
Deferred tax remeasurement | 85 | (352) | |
REIT excise tax | 249 | ||
Excess tax benefit from stock option exercise | (119) | (107) | (283) |
Bank owned life insurance | (140) | (316) | (177) |
Reversal of unrecognized tax benefits, net | (512) | (197) | (125) |
State income taxes, net of federal benefit | 364 | 61 | 269 |
Investment tax credits | (24) | (7) | (11) |
Other, net | (71) | (62) | 28 |
Income tax (benefit) expense | $ 1,168 | $ (897) | $ 2,314 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Federal alternative minimum tax credit and low income housing credit carry forwards | $ 2,485 | |
Loans, including allowance for loan losses | 1,489 | 1,419 |
Net operating loss carry forwards | 383 | 529 |
State taxes | 398 | 413 |
Acquisition costs | 202 | 224 |
Deferred compensation arrangements | 78 | 88 |
Unrealized loss on investment securities available-for-sale | 1,295 | 132 |
Investments | 33 | 46 |
Other, net | 26 | 46 |
Total deferred tax assets | 3,904 | 5,382 |
Less valuation allowance | (383) | (529) |
Total deferred tax assets, net of valuation allowance | 3,521 | 4,853 |
Undistributed equity earnings | 1,539 | |
Premises and equipment, net of depreciation | 447 | 454 |
Mortgage servicing rights | 464 | 470 |
Prepaid expenses | 209 | 210 |
Intangible assets | 92 | 12 |
FHLB stock dividends | 56 | 74 |
Other borrowings | 35 | |
Total deferred tax liabilities | 1,268 | 2,794 |
Net deferred tax asset | $ 2,253 | $ 2,059 |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits at beginning of year | $ 1,505 | $ 1,809 |
Gross increases to current year tax positions | 464 | 50 |
Gross decreases to prior year's tax positions | (2) | (10) |
Lapse of statute of limitations | (495) | (344) |
Unrecognized tax benefits at end of year | $ 1,472 | $ 1,505 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined contribution plan, employer matching contribution, percent of employees gross pay | 100.00% | ||
Defined benefit plan, contributions by employer | $ 468 | $ 519 | $ 543 |
Split Dollar Life Insurance Agreement [Member] | |||
Deferred compensation liability | 35 | 36 | |
Deferred Compensation Agreements [Member] | |||
Deferred compensation arrangements accrued benefits | 564 | 628 | |
Deferred compensation expense | $ 2 | $ 3 | $ 4 |
Maximum [Member] | |||
Defined contribution plan, employer matching contribution, percent of employees gross pay | 6.00% |
Stock Compensation Plan (Detail
Stock Compensation Plan (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Aug. 01, 2018 | Aug. 01, 2017 | Aug. 01, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 20, 2015 |
Stock compensation vesting period description | Four or five years | ||||||
Share-based compensation, total | $ 223 | $ 172 | $ 59 | ||||
Recognized tax benefit from compensation expense | $ 194 | $ 180 | $ 330 | ||||
Maximum stock options exercise price of fair market value of shares on date of grant rate | 100.00% | ||||||
Unrecognized share based compensation | $ 160 | ||||||
Number of nonvested options, outstanding | 24,547 | ||||||
Restricted Stock [Member] | |||||||
Unrecognized share based compensation | $ 339 | ||||||
Number of nonvested options, outstanding | 16,800 | ||||||
2015 Stock Incentive Plan [Member] | |||||||
Stock compensation vesting period description | Vest ratably over one year | These awards vest ratably over one or four years. The value of the 14,355, as adjusted for subsequent stock dividends, shares was based on a stock price of $22.24 per share on the date such shares were granted as adjusted for subsequent stock dividends. | |||||
Common stock, capital shares reserved for future issuance | 303,877 | ||||||
Number of restricted common stock shares | 11,319 | 3,016 | 14,355 | ||||
Share price | $ 27.63 | $ 26.53 | $ 22.24 | ||||
Options to acquire shares | 35,757 |
Stock Compensation Plan - Sched
Stock Compensation Plan - Schedule of Fair Value of Options Assumed (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 2.07% | ||
Expected term | 0 years | 7 years | 0 years |
Expected stock price volatility | 33.30% | ||
Dividend yield | 2.74% |
Stock Compensation Plan - Sch_2
Stock Compensation Plan - Schedule of Share-based Compensation, Stock Options, Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Shares, Outstanding beginning | 173,448 | ||
Shares, Granted | |||
Shares, Effect of 5% stock dividend | 3,431 | ||
Shares, Forfeited/expired | (36,043) | ||
Shares, Exercised | (72,130) | (17,540) | (141,103) |
Shares, Outstanding ending | 68,706 | 173,448 | |
Shares, Exercisable | 44,159 | ||
Shares, Fully vested options | 44,159 | ||
Weighted average exercise price per share, Outstanding beginning | $ 16.09 | ||
Weighted average exercise price per share, Granted | |||
Weighted average exercise price per share, Forfeited/expired | 15.42 | ||
Weighted average exercise price per share, Exercised | 7.40 | ||
Weighted average exercise price per share, Outstanding ending | 17.97 | $ 16.09 | |
Weighted average exercise price per share, Exercisable | 13.21 | ||
Weighted average exercise price per share, Fully vested options | $ 13.21 | ||
Weighted average remaining contractual term beginning | 2 years 9 months 18 days | ||
Weighted average remaining contractual term ending | 5 years 1 month 6 days | ||
Weighted average remaining contractual term, Exercisable | 3 years 2 months 12 days | ||
Weighted average remaining contractual term, Fully vested options | 3 years 2 months 12 days | ||
Aggregate intrinsic value outstanding beginning | $ 2,237 | ||
Aggregate intrinsic value outstanding ending | 462 | $ 2,237 | |
Aggregate intrinsic value, Exercisable | 462 | ||
Aggregate intrinsic value, Fully vested options | $ 462 |
Stock Compensation Plan - Sch_3
Stock Compensation Plan - Schedule of Share-based Compensation, Stock Options, Activity (Details) (Parenthetical) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share based compensation effect of dividend percentage | 5.00% |
Stock Compensation Plan - Sch_4
Stock Compensation Plan - Schedule of Stock Option Exercised Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Intrinsic value of options exercised (on exercise date) | $ 1,523 | $ 279 | $ 1,820 |
Cash received from options exercised | 534 | 228 | 1,796 |
Excess tax benefit realized from options exercised | $ 136 | $ 103 | $ 308 |
Stock Compensation Plan - Sch_5
Stock Compensation Plan - Schedule of Share-based Compensation Arrangements by Share-based Payment Award (Details) $ in Thousands | Dec. 31, 2018USD ($) |
2019 | $ 62 |
2020 | 62 |
2021 | 36 |
Total | 160 |
Restricted Stock [Member] | |
2019 | 155 |
2020 | 92 |
2021 | 58 |
2022 | 34 |
Total | $ 339 |
Stock Compensation Plan - Sch_6
Stock Compensation Plan - Schedule of Nonvested Share Activity (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Nonvested restricted common stock, Beginning balance | 9,834 |
Nonvested restricted common stock, Granted | 10,780 |
Nonvested restricted common stock, Vested | (4,605) |
Nonvested restricted common stock, Effect of 5% stock dividend | 791 |
Nonvested restricted common stock, Ending balance | 16,800 |
Weighted average grant date price per share, Beginning balance | $ / shares | $ 24.67 |
Weighted average grant date price per share, Granted | $ / shares | 27.63 |
Weighted average grant date price per share, Vested | $ / shares | 26.16 |
Weighted average grant date price per share, Ending balance | $ / shares | $ 25.87 |
Stock Compensation Plan - Sch_7
Stock Compensation Plan - Schedule of Nonvested Share Activity (Details) (Parenthetical) | 12 Months Ended |
Dec. 31, 2018 | |
Share based compensation effect of dividend percentage | 5.00% |
Restricted Stock [Member] | |
Share based compensation effect of dividend percentage | 5.00% |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Disclosures [Abstract] | |||
Impaired financing receivable, recorded investment, total | $ 8,691 | $ 9,760 | $ 6,728 |
Impaired financing receivable, related allowance | $ 310 | $ 642 | $ 274 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments and Fair Value Measurements - Schedule of Fair Value, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 19,114 | $ 16,584 | $ 19,996 | $ 13,569 |
Investment securities available for sale | 388,345 | 387,983 | ||
Bank stocks, at cost | 4,776 | 5,423 | ||
Loans, net | 489,373 | 433,743 | ||
Loans held for sale | 4,743 | 6,535 | ||
Derivative financial instruments | 522 | 395 | ||
Accrued interest receivable | 4,631 | 4,409 | ||
Non-maturity deposits | (656,628) | (642,281) | ||
Time deposits | (167,020) | (123,277) | ||
FHLB borrowings | (20,000) | (31,600) | ||
Subordinated debentures | (21,651) | (21,484) | ||
Other borrowings | (15,246) | (13,509) | ||
Accrued interest payable | (442) | (274) | ||
Derivative financial instruments | (25) | |||
Level 1 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 19,114 | 16,584 | ||
Investment securities available for sale | 1,971 | 1,998 | ||
Bank stocks, at cost | ||||
Loans, net | ||||
Loans held for sale | ||||
Derivative financial instruments | ||||
Accrued interest receivable | 20 | |||
Non-maturity deposits | (656,628) | (642,281) | ||
Time deposits | ||||
FHLB borrowings | ||||
Subordinated debentures | ||||
Other borrowings | ||||
Accrued interest payable | ||||
Derivative financial instruments | ||||
Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | ||||
Investment securities available for sale | 386,374 | 385,985 | ||
Bank stocks, at cost | ||||
Loans, net | ||||
Loans held for sale | 4,743 | 6,535 | ||
Derivative financial instruments | 522 | 395 | ||
Accrued interest receivable | 2,194 | 2,234 | ||
Non-maturity deposits | ||||
Time deposits | (164,994) | (121,298) | ||
FHLB borrowings | (20,000) | (31,706) | ||
Subordinated debentures | (19,678) | (19,134) | ||
Other borrowings | (15,246) | (13,509) | ||
Accrued interest payable | (442) | (274) | ||
Derivative financial instruments | (25) | |||
Level 3 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | ||||
Investment securities available for sale | ||||
Bank stocks, at cost | ||||
Loans, net | 494,473 | 436,910 | ||
Loans held for sale | ||||
Derivative financial instruments | ||||
Accrued interest receivable | 2,437 | 2,155 | ||
Non-maturity deposits | ||||
Time deposits | ||||
FHLB borrowings | ||||
Subordinated debentures | ||||
Other borrowings | ||||
Accrued interest payable | ||||
Derivative financial instruments | ||||
Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 19,114 | 16,584 | ||
Investment securities available for sale | 388,345 | 387,983 | ||
Bank stocks, at cost | ||||
Loans, net | 494,473 | 436,910 | ||
Loans held for sale | 4,743 | 6,535 | ||
Derivative financial instruments | 522 | 395 | ||
Accrued interest receivable | 4,631 | 4,409 | ||
Non-maturity deposits | (656,628) | (642,281) | ||
Time deposits | (164,994) | (121,298) | ||
FHLB borrowings | (20,000) | (31,706) | ||
Subordinated debentures | (19,678) | (19,134) | ||
Other borrowings | (15,246) | (13,509) | ||
Accrued interest payable | (442) | $ (274) | ||
Derivative financial instruments | $ (25) |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments and Fair Value Measurements - Schedule of Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | $ 388,345 | $ 387,983 |
Loans held for Sale | 4,743 | 6,535 |
Assets: Derivative financial instruments | 522 | 395 |
Liabilities: Derivative financial instruments | 25 | |
Municipal Obligations, Tax Exempt [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 159,112 | 184,738 |
Municipal Obligations, Taxable [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 53,035 | 57,976 |
Agency Mortgage-backed Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 156,076 | 117,555 |
Certificates of Deposit [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 7,790 | 9,224 |
Common Stocks [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 8 | |
Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 1,971 | 1,998 |
Assets: Derivative financial instruments | ||
Liabilities: Derivative financial instruments | ||
Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 386,374 | 385,985 |
Assets: Derivative financial instruments | 522 | 395 |
Liabilities: Derivative financial instruments | 25 | |
Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Assets: Derivative financial instruments | ||
Liabilities: Derivative financial instruments | ||
Fair Value, Measurements, Recurring [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held for Sale | 4,743 | 6,535 |
Assets: Derivative financial instruments | 522 | 395 |
Liabilities: Derivative financial instruments | (25) | |
Fair Value, Measurements, Recurring [Member] | Municipal Obligations, Tax Exempt [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 159,112 | 184,738 |
Fair Value, Measurements, Recurring [Member] | Municipal Obligations, Taxable [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 53,035 | 57,976 |
Fair Value, Measurements, Recurring [Member] | Agency Mortgage-backed Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 156,076 | 117,555 |
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 7,790 | 9,224 |
Fair Value, Measurements, Recurring [Member] | Common Stocks [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 8 | |
Fair Value, Measurements, Recurring [Member] | US Federal Agency Obligations [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 10,361 | 16,492 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held for Sale | ||
Assets: Derivative financial instruments | ||
Liabilities: Derivative financial instruments | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Municipal Obligations, Tax Exempt [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Municipal Obligations, Taxable [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Agency Mortgage-backed Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Certificates of Deposit [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Common Stocks [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 8 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | US Federal Agency Obligations [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held for Sale | 4,743 | 6,535 |
Assets: Derivative financial instruments | 522 | 395 |
Liabilities: Derivative financial instruments | (25) | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Municipal Obligations, Tax Exempt [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 159,112 | 184,738 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Municipal Obligations, Taxable [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 53,035 | 57,976 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Agency Mortgage-backed Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 156,076 | 117,555 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Certificates of Deposit [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 7,790 | 9,224 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Common Stocks [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | US Federal Agency Obligations [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 10,361 | 16,492 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Loans held for Sale | ||
Assets: Derivative financial instruments | ||
Liabilities: Derivative financial instruments | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Municipal Obligations, Tax Exempt [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Municipal Obligations, Taxable [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Agency Mortgage-backed Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Certificates of Deposit [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Common Stocks [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | US Federal Agency Obligations [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 1,971 | 1,990 |
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | 1,971 | 1,990 |
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Investment securities available for sale |
Fair Value of Financial Instr_6
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 | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Aggregate fair value | $ 4,743 | $ 6,535 |
Contractual balance | 4,687 | 6,420 |
Gain | $ 56 | $ 115 |
Fair Value of Financial Instr_7
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 | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Interest income | $ 333 | $ 259 |
Change in fair value | (59) | 78 |
Total change in fair value | $ 274 | $ 337 |
Fair Value of Financial Instr_8
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 | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
One-to-Four Family Residential Real Estate Loans [Member] | ||
Impaired loans | $ 110 | $ 171 |
Total (losses)/gains on impaired loans fair value disclosure | (29) | (73) |
One-to-Four Family Residential Real Estate Loans [Member] | Level 1 [Member] | ||
Impaired loans | ||
One-to-Four Family Residential Real Estate Loans [Member] | Level 2 [Member] | ||
Impaired loans | ||
One-to-Four Family Residential Real Estate Loans [Member] | Level 3 [Member] | ||
Impaired loans | 110 | 171 |
Construction and Land Loan [Member] | ||
Impaired loans | 322 | 1,499 |
Total (losses)/gains on impaired loans fair value disclosure | (103) | (102) |
Construction and Land Loan [Member] | Level 1 [Member] | ||
Impaired loans | ||
Construction and Land Loan [Member] | Level 2 [Member] | ||
Impaired loans | ||
Construction and Land Loan [Member] | Level 3 [Member] | ||
Impaired loans | 322 | 1,499 |
Commercial Real Estate Loans [Member] | ||
Impaired loans | 1,725 | 33 |
Total (losses)/gains on impaired loans fair value disclosure | 377 | 12 |
Commercial Real Estate Loans [Member] | Level 1 [Member] | ||
Impaired loans | ||
Commercial Real Estate Loans [Member] | Level 2 [Member] | ||
Impaired loans | ||
Commercial Real Estate Loans [Member] | Level 3 [Member] | ||
Impaired loans | 1,725 | 33 |
Commercial Loans [Member] | ||
Impaired loans | 55 | 1,600 |
Total (losses)/gains on impaired loans fair value disclosure | (51) | (304) |
Commercial Loans [Member] | Level 1 [Member] | ||
Impaired loans | ||
Commercial Loans [Member] | Level 2 [Member] | ||
Impaired loans | ||
Commercial Loans [Member] | Level 3 [Member] | ||
Impaired loans | 55 | 1,600 |
Agriculture Loans [Member] | ||
Impaired loans | 175 | 264 |
Total (losses)/gains on impaired loans fair value disclosure | 11 | 65 |
Agriculture Loans [Member] | Level 1 [Member] | ||
Impaired loans | ||
Agriculture Loans [Member] | Level 2 [Member] | ||
Impaired loans | ||
Agriculture Loans [Member] | Level 3 [Member] | ||
Impaired loans | $ 175 | 264 |
Real Estate Owned One-To-Four Family Residential Real Estate Loan [Member] | ||
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] | ||
Impaired loans | ||
Real Estate Owned One-To-Four Family Residential Real Estate Loan [Member] | Level 2 [Member] | ||
Impaired loans | ||
Real Estate Owned One-To-Four Family Residential Real Estate Loan [Member] | Level 3 [Member] | ||
Impaired loans | 325 | |
Real Estate Owned Commercial Real Estate Loan [Member] | ||
Impaired loans | 85 | |
Total (losses)/gains on impaired loans fair value disclosure | (50) | |
Real Estate Owned Commercial Real Estate Loan [Member] | Level 1 [Member] | ||
Impaired loans | ||
Real Estate Owned Commercial Real Estate Loan [Member] | Level 2 [Member] | ||
Impaired loans | ||
Real Estate Owned Commercial Real Estate Loan [Member] | Level 3 [Member] | ||
Impaired loans | $ 85 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments and Fair Value Measurements - Schedule of Fair Value Measurements on Nonrecurring, Valuation Techniques (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
One-to-Four Family Residential Real Estate Loans [Member] | ||
Impaired Loans Fair Value Disclosure | $ 110 | $ 171 |
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 Loans [Member] | Minimum [Member] | ||
Fair Value Measurements Range | 0.00% | 16.00% |
One-to-Four Family Residential Real Estate Loans [Member] | Maximum [Member] | ||
Fair Value Measurements Range | 20.00% | 50.00% |
Construction and Land Loan [Member] | ||
Impaired Loans Fair Value Disclosure | $ 322 | $ 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 | 25.00% | 25.00% |
Commercial Real Estate Loans [Member] | ||
Impaired Loans Fair Value Disclosure | $ 1,725 | $ 33 |
Fair Value Measurements, Valuation Techniques | Sales comparison | Sales comparison |
Fair Value Measurements, Unobservable inputs | Adjustment to appraised value | Adjustment to appraised value |
Fair Value Measurements Range | 0.00% | |
Commercial Real Estate Loans [Member] | Minimum [Member] | ||
Fair Value Measurements Range | 0.00% | |
Commercial Real Estate Loans [Member] | Maximum [Member] | ||
Fair Value Measurements Range | 91.00% | |
Commercial Loans [Member] | ||
Impaired Loans Fair Value Disclosure | $ 55 | $ 1,600 |
Fair Value Measurements, Valuation Techniques | Sales comparison | Sales comparison |
Fair Value Measurements, Unobservable inputs | Adjustment to comparable sales | Adjustment to comparable sales |
Commercial Loans [Member] | Minimum [Member] | ||
Fair Value Measurements Range | 0.00% | 15.00% |
Commercial Loans [Member] | Maximum [Member] | ||
Fair Value Measurements Range | 15.00% | 50.00% |
Agriculture Loans [Member] | ||
Impaired Loans Fair Value Disclosure | $ 175 | $ 264 |
Fair Value Measurements, Valuation Techniques | Sales comparison | Sales comparison |
Fair Value Measurements, Unobservable inputs | Adjustment to appraised value | Adjustment to appraised value |
Fair Value Measurements Range | 0.00% | |
Agriculture Loans [Member] | Minimum [Member] | ||
Fair Value Measurements Range | 0.00% | |
Agriculture Loans [Member] | Maximum [Member] | ||
Fair Value Measurements Range | 50.00% | |
One-to-Four Family Residential Real Estate Loan [Member] | ||
Impaired Loans Fair Value Disclosure | $ 325 | |
Fair Value Measurements, Valuation Techniques | Sales comparison | |
Fair Value Measurements, Unobservable inputs | Adjustment to appraised value | |
Fair Value Measurements Range | 10.00% | |
Commercial Real Estate Loan [Member] | ||
Impaired Loans Fair Value Disclosure | $ 85 | |
Fair Value Measurements, Valuation Techniques | Sales comparison | |
Fair Value Measurements, Unobservable inputs | Adjustment to appraised value | |
Fair Value Measurements Range | 10.00% |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Regulatory Capital Requirements [Line Items] | |||
Assets, total | $ 985,784 | $ 929,454 | |
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 | $ 3,000,000 | ||
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 Requiremen_4
Regulatory Capital Requirements - Schedule of Compliance with Regulatory Capital Requirements for Mortgage Companies (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
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% | ||
Company's Regulatory Capital Requirements [Member] | |||
Leverage - Actual Amount | $ 99,150 | $ 88,605 | |
Common Equity Tier 1 Capital - Actual Amount | 78,150 | 68,269 | |
Tier 1 Capital - Actual Amount | 99,150 | 88,605 | |
Total Risk Based Capital - Actual Amount | $ 105,055 | $ 94,208 | |
Leverage - Actual Ratio | 10.34% | 9.80% | |
Common Equity Tier 1 Capital - Actual Ratio | 13.12% | 12.83% | |
Tier 1 Capital - Actual Ratio | 16.64% | 16.65% | |
Total Risk Based Capital - Actual Ratio | 17.63% | 17.71% | |
Leverage - For capital adequacy purposes Amount | $ 38,373 | $ 36,180 | |
Common Equity Tier 1 Capital - For capital adequacy purposes Amount | 37,982 | 30,590 | |
Tier 1 Capital - For capital adequacy purposes Amount | 46,919 | 38,571 | |
Total Risk Based Capital - For capital adequacy purposes Amount | $ 58,835 | $ 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 percent for capital adequacy purposes includes a capital conservation buffer of 1.875% for December 31, 2018 and 1.25% for December 31, 2017. |
Regulatory Capital Requiremen_5
Regulatory Capital Requirements - Schedule of Compliance with Regulatory Capital Requirements for Mortgage Companies (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Company's Regulatory Capital Requirements [Member] | ||
Tier one capital conversation buffer | 1.875% | 1.25% |
Regulatory Capital Requiremen_6
Regulatory Capital Requirements - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) - USD ($) $ in Thousands | Dec. 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 | $ 97,112 | $ 86,808 | |
Common Equity Tier 1 Capital - Actual Amount | 97,112 | 86,808 | |
Tier 1 Capital - Actual Amount | 97,112 | 86,808 | |
Total Risk Based Capital - Actual Amount | $ 103,017 | $ 92,407 | |
Leverage - Actual Ratio | 10.15% | 9.62% | |
Common Equity Tier 1 Capital - Actual Ratio | 16.33% | 16.35% | |
Tier 1 Capital - Actual Ratio | 16.33% | 16.35% | |
Total Risk Based Capital - Actual Ratio | 17.32% | 17.40% | |
Leverage - For capital adequacy purposes Amount | $ 38,254 | $ 36,097 | |
Common Equity Tier 1 Capital - For capital adequacy purposes Amount | 37,922 | 30,529 | |
Tier 1 Capital - For capital adequacy purposes Amount | 46,844 | 38,493 | |
Total Risk Based Capital - For capital adequacy purposes Amount | $ 58,741 | $ 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 | $ 47,818 | $ 45,122 | |
Common Equity Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Amount | 38,665 | 34,511 | |
Tier 1 Capital - To be well-capitalized under prompt corrective action provisions Amount | 47,588 | 42,475 | |
Total Risk Based Capital - To be well-capitalized under prompt corrective action provisions Amount | $ 59,485 | $ 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 percent for capital adequacy purposes includes a capital conservation buffer of 1.875% for December 31, 2018 and 1.25% for December 31, 2017. |
Regulatory Capital Requiremen_7
Regulatory Capital Requirements - Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) (Parenthetical) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Banks Regulatory Capital Requirements [Member] | ||
Tier one capital conversation buffer | 1.875% | 1.25% |
Parent Company Condensed Fina_3
Parent Company Condensed Financial Statements (Details Narrative) $ in Thousands | Dec. 31, 2018USD ($) |
Condensed Financial Information Disclosure [Abstract] | |
Distributed dividends without regulatory approvals | $ 16,400 |
Parent Company Condensed Fina_4
Parent Company Condensed Financial Statements - Schedule of Condensed Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash and cash equivalents | $ 19,114 | $ 16,584 | $ 19,996 | $ 13,569 |
Total assets | 985,784 | 929,454 | ||
Subordinated debentures | 21,651 | 21,484 | ||
Stockholders' equity | 91,901 | 87,622 | 84,951 | $ 80,570 |
Total liabilities and stockholders' equity | 985,784 | 929,454 | ||
Gain on sale of investment | 20 | 498 | 558 | |
Other non-interest income | 2,595 | 1,126 | 1,040 | |
Interest expense | (5,365) | (3,585) | (3,191) | |
Earnings before income taxes | 11,594 | 3,472 | 11,275 | |
Income tax benefit | 1,168 | (897) | 2,314 | |
Net earnings | 10,426 | 4,369 | 8,961 | |
Other comprehensive (loss) income | (3,579) | 1,010 | (3,523) | |
Total comprehensive income | 6,847 | 5,379 | 5,438 | |
Amortization of purchase accounting adjustment on subordinated debentures | 167 | 200 | 200 | |
Gain on sale of investment | (20) | (498) | (558) | |
Net cash provided by operating activities | 21,383 | 3,056 | 19,017 | |
Net cash provided by investing activities | (64,289) | (21,152) | (40,283) | |
Proceeds from exercise of stock options | 534 | 228 | 1,796 | |
Proceeds from other borrowings | 1,737 | 1,126 | 509 | |
Repayments on other borrowings | (100) | |||
Payment of dividends | (3,325) | (3,108) | (2,912) | |
Net cash used in financing activities | 45,436 | 14,684 | 27,693 | |
Parent Company [Member] | ||||
Cash and cash equivalents | 100 | 217 | ||
Investment securities | 237 | 245 | ||
Investment in subsidiaries | 112,394 | 107,443 | ||
Other | 942 | 1,261 | ||
Total assets | 113,673 | 109,166 | ||
Subordinated debentures | 21,651 | 21,484 | ||
Other | 121 | 60 | ||
Stockholders' equity | 91,901 | 87,622 | ||
Total liabilities and stockholders' equity | 113,673 | 109,166 | ||
Dividends from Bank | 3,200 | 3,700 | 1,250 | |
Interest income | 29 | 49 | 59 | |
Gain on sale of investment | 493 | 324 | ||
Other non-interest income | 7 | 7 | 7 | |
Interest expense | (1,078) | (898) | (787) | |
Other expense, net | (325) | (470) | (314) | |
Earnings before equity in undistributed earnings | 1,833 | 2,881 | 539 | |
Increase in undistributed equity of Bank | 7,567 | 633 | 8,171 | |
Increase in undistributed equity of Nonbank subsidiary | 740 | 542 | ||
Earnings before income taxes | 10,140 | 4,056 | 8,710 | |
Income tax benefit | (286) | (313) | (251) | |
Net earnings | 10,426 | 4,369 | 8,961 | |
Other comprehensive (loss) income | (3,579) | 1,010 | (3,523) | |
Total comprehensive income | 6,847 | 5,379 | 5,438 | |
Increase in undistributed equity of subsidiaries | (8,307) | (1,175) | (8,171) | |
Amortization of purchase accounting adjustment on subordinated debentures | 167 | 200 | 200 | |
Gain on sale of investment | (493) | (324) | ||
Other | 381 | (543) | (112) | |
Net cash provided by operating activities | 2,667 | 2,358 | 554 | |
Investment in subsidiary | (250) | |||
Proceeds from sales of investments | 7 | 967 | 445 | |
Net cash provided by investing activities | 7 | 717 | 445 | |
Proceeds from exercise of stock options | 534 | 228 | 1,796 | |
Proceeds from other borrowings | 100 | |||
Repayments on other borrowings | (100) | |||
Payment of dividends | (3,325) | (3,108) | (2,912) | |
Net cash used in financing activities | (2,791) | (2,880) | (1,116) | |
Net (decrease)increase in cash | (117) | 195 | (117) | |
Cash at beginning of year | 217 | 22 | 139 | |
Cash at end of year | $ 100 | $ 217 | $ 22 |
Deposit-Related Loss (Details N
Deposit-Related Loss (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Aug. 08, 2017 | |
Collection amount provided | $ 2,200 | ||
Overdraft pre-tax loss | $ 8,100 | ||
Additional loss recovered | $ 1,500 | ||
Third Party [Member] | |||
Overdraft balance amount | $ 10,300 |