Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2016shares | |
Document and Entity Information: | |
Entity Registrant Name | FNB BANCORP/CA/ |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2016 |
Amendment Flag | false |
Entity Central Index Key | 1,163,199 |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 4,566,041 |
Entity Filer Category | Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollar amounts in thousands) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 37,737 | $ 12,314 |
Interest-bearing time deposits with financial institutions | 205 | 205 |
Securities available-for-sale, at fair value | 329,396 | 329,207 |
Loans, net of allowance for loan losses of $9,943 and $9,970 on March 31, 2016 and December 31, 2015 | 733,991 | 722,747 |
Bank premises, equipment, and leasehold improvements, net | 10,320 | 10,202 |
Bank-owned life insurance, net | 15,946 | 15,845 |
Other equity securities | 6,756 | 6,748 |
Accrued interest receivable | 4,603 | 4,511 |
Other real estate owned, net | 1,055 | 1,026 |
Goodwill | 4,580 | 4,580 |
Prepaid expenses | 945 | 997 |
Other assets | 15,444 | 15,967 |
Total assets | 1,160,978 | 1,124,349 |
Deposits | ||
Demand, noninterest bearing | 265,947 | 263,822 |
Demand, interest bearing | 113,337 | 102,304 |
Savings and money market | 526,557 | 491,633 |
Time | 124,410 | 125,430 |
Total deposits | 1,030,251 | 983,189 |
Federal Home Loan Bank advances | 0 | 17,000 |
Note Payable | 4,800 | 4,950 |
Accrued expenses and other liabilities | 17,230 | 15,048 |
Total liabilities | 1,052,281 | 1,020,187 |
Stockholders' equity | ||
Common stock, no par value, authorized 10,000,000 shares; issued and outstanding 4,566,041 shares at March 31, 2016 and 4,541,680 shares at December 31, 2015 | 75,240 | 74,805 |
Retained earnings | 29,666 | 27,816 |
Accumulated other comprehensive earnings, net of tax | 3,791 | 1,541 |
Total stockholders' equity | 108,697 | 104,162 |
Total liabilities and stockholders' equity | $ 1,160,978 | $ 1,124,349 |
CONSOLIDATED BALANCE SHEETS (Do
CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Allowance for loan losses | $ 9,943 | $ 9,970 |
Common Stock, shares authorized | 10,000,000 | 10,000,000 |
Common Stock, shares issued | 4,566,041 | 4,541,680 |
Common Stock, shares outstanding | 4,566,041 | 4,541,680 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) (Dollar amounts in thousands) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest income: | ||
Interest and fees on loans | $ 9,871 | $ 7,710 |
Interest on taxable securities | 978 | 830 |
Interest on tax-exempt securities | 707 | 514 |
Interest time deposits with other financial institutions | 1 | 14 |
Total interest income | 11,557 | 9,068 |
Interest expense: | ||
Interest on deposits | 783 | 454 |
Interest on FHLB advances | 8 | 1 |
Interest on note payable | 57 | 59 |
Total interest expense | 848 | 514 |
Net interest income | 10,709 | 8,554 |
Provision for loan losses | 75 | 75 |
Net interest income after provision for loan losses | 10,634 | 8,479 |
Noninterest income: | ||
Service charges | 621 | 611 |
Gain on sale of available-for-sale securities | 184 | 69 |
Bank-owned life insurance policy earnings | 100 | 84 |
Other income | 237 | 314 |
Total noninterest income | 1,142 | 1,078 |
Noninterest expense: | ||
Salaries and employee benefits | 4,938 | 4,302 |
Occupancy expense | 631 | 668 |
Equipment expense | 434 | 405 |
Professional fees | 387 | 387 |
FDIC assessment | 150 | 150 |
Telephone, postage and supplies | 295 | 289 |
Advertising | 117 | 99 |
Data processing expense | 192 | 134 |
Low income housing expense | 71 | 71 |
Surety insurance | 87 | 88 |
Directors expense | 72 | 72 |
Other real estate owned expense | (10) | 0 |
Other expense | 423 | 278 |
Total noninterest expense | 7,787 | 6,943 |
Earnings before provision for income tax expense | 3,989 | 2,614 |
Provision for income tax expense | 1,422 | 815 |
Net earnings | $ 2,567 | $ 1,799 |
Earnings per share data: | ||
Basic | $ 0.56 | $ 0.40 |
Diluted | $ 0.55 | $ 0.39 |
Weighted average shares outstanding: | ||
Basic | 4,550 | 4,487 |
Diluted | 4,687 | 4,623 |
CONSOLIDATED STATEMENTS OF EAR5
CONSOLIDATED STATEMENTS OF EARNINGS (Dollar amounts in thousands) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues [Abstract] | ||
Net earnings | $ 2,567 | $ 1,799 |
Unrealized holding gain on available-for-sale securities, net of tax expense of ($1,639) and ($720) | 2,359 | 1,324 |
Reclassifiation adjustment for gain recognized on available-for-sale securities sold, net of tax benefit of $75 and ($28) for the three months ended March 31, 2016 and 2015, respectively | (109) | (41) |
Other Comprehensive Earnings | 2,250 | 1,283 |
Total comprehensive earnings | $ 4,817 | $ 3,082 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parentheticals) (Dollar amounts in thousands) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Comprehensive Earnings Parentheticals | ||
Tax (expense) benefit on unrealized holding gain (loss) on available-for-sale securities | $ (1,639) | $ (720) |
Tax on reclassification adjustment for gain on available-for-sale | $ 75 | $ (28) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Dollar amounts in thousands) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flow from operating activities: | ||
Net earnings | $ 2,567 | $ 1,799 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Net gain on sale of securities available-for-sale | (184) | (69) |
Depreciation, amortization and accretion | 928 | 823 |
Stock-based compensation expense | 88 | 61 |
Earnings on bank owned life insurance | (100) | (84) |
Provision for loan losses | 75 | 75 |
Increase (decrease) increase in net deferred loan fees | 69 | (54) |
Increase in accrued interest receivable | (92) | (19) |
Decrease in prepaid expense | 52 | 29 |
Decrease in other assets | 522 | 1,800 |
Decrease in accrued expenses and other liabilities | (64) | (2,487) |
Net cash provided by operating activities | 3,861 | 1,874 |
Cash flows from investing activities: | ||
Purchase of securities available-for-sale | (16,415) | (16,232) |
Proceeds from matured/called/sold securities available-for-sale | 19,563 | 18,321 |
Investment, net of redemption, in other equity securities | (8) | (4) |
Redemption of time deposits of other banks | 0 | 1 |
Net investment in other real estate owned | (29) | (7) |
Net (increase) decrease in loans | (11,388) | 8,088 |
Purchases of bank premises, equipment, leasehold improvements | (386) | (20) |
Net cash (used in) provided by investing activities | (8,663) | 10,147 |
Cash flows from financing activities: | ||
Net increase in demand and savings deposits | 48,082 | 11,078 |
Net (decrease) increase in time deposits | (1,020) | 1,352 |
Decrease in FHLB advances | (17,000) | (9,000) |
Principal reduction on note payable | (150) | (150) |
Dividends paid on common stock | (34) | (29) |
Exercise of stock options | 347 | 390 |
Net cash provided by financing activities | 30,225 | 3,641 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 25,423 | 15,662 |
Cash and cash equivalents at beginning of period | 12,314 | 14,978 |
Cash and cash equivalents at end of period | 37,737 | 30,640 |
Additional cash flow information: | ||
Interest paid | 840 | 531 |
Income taxes paid | 202 | 865 |
Non-cash investing and financing activities: | ||
Accrued dividends | 683 | 555 |
Change in unrealized gain in available for-sale securities, net of tax | $ 2,250 | $ 1,283 |
A. BASIS OF PRESENTATION
A. BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2016 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | FNB Bancorp (the Company) is a bank holding company registered under the Bank Holding Company Act of 1956, as amended. The Company was incorporated under the laws of the State of California on February 28, 2001. The consolidated financial statements include the accounts of FNB Bancorp and its wholly-owned subsidiary, First National Bank of Northern California (the Bank). The Bank provides traditional banking services in San Mateo and San Francisco counties. All intercompany transactions and balances have been eliminated in consolidation. The financial statements include all adjustments of a normal and recurring nature, which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnotes normally included in annual financial statements prepared in conformity with accounting principles generally accepted in the United States of America. Accordingly, these consolidated financial statements should be read in conjunction with the consolidated audited financial statements and notes thereto for the year ended December 31, 2015. Results of operations for interim periods are not necessarily indicative of results for the full year. Certain prior year information has been reclassified to conform to current year presentation. The reclassifications had no impact on consolidated net earnings or stockholders equity. |
B. STOCK OPTION PLANS
B. STOCK OPTION PLANS | 3 Months Ended |
Mar. 31, 2016 | |
Share-based Compensation [Abstract] | |
STOCK OPTION PLANS | Stock option expense is recorded based on the fair value of option contracts issued. The fair value is determined by using an option pricing model that considers the expected contract term, the risk free interest rate, the volatility of the Companys stock price and the level of dividends the Company is expected to pay. Measurement of the cost of the stock options granted is based on the grant-date fair value of each stock option using the Black-Scholes valuation model. The cost is then amortized over each options requisite service period. The expected term of options granted is derived from the period of time the options are expected to be outstanding. The risk free rate is based on the yield of an equivalent maturity U.S. Treasury note. Volatility is calculated using historical price changes on a monthly basis over the options expected life. The amount of stock option compensation expense recorded in the quarters ended March 31, 2016 and 2015 was $88,000 and $61,000, respectively. There was no income tax benefit recognized in the consolidated statements of earnings for these amounts for the quarters ended March 31, 2016 and 2015, respectively. The intrinsic value for options exercised during the quarters ended March 31, 2016 and March 31, 2015 was$405,000 and $314,000, respectively. The intrinsic value of options exercisable during the quarter ended March 31, 2016 and March 31, 2015 was $3,682,000 and $3,463,000, respectively. The amount of total unrecognized compensation expense related to non-vested options at March 31, 2016 was $962,000, and the weighted average period over which it will be amortized is 3.8 years. |
C. EARNINGS PER SHARE CALCULATI
C. EARNINGS PER SHARE CALCULATION | 3 Months Ended |
Mar. 31, 2016 | |
Earnings per share data: | |
EARNINGS PER SHARE CALCULATION | Earnings per common share (EPS) are computed based on the weighted average number of common shares outstanding during the period. Basic EPS excludes dilution and is computed by dividing net earnings available to common stockholders by the weighted average of common shares outstanding. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The number of potential common shares included in the quarterly diluted EPS is computed using the average market price during the three months included in the reporting period under the treasury stock method. The number of potential common shares included in year-to-date diluted EPS is a year-to-date weighted average of potential shares included in each quarterly diluted EPS computation. All common stock equivalents are anti-dilutive when a net loss occurs. A 5% stock dividend was declared in the fourth quarter of 2015, and prior per share amounts have been adjusted to reflect the 5% stock dividend. Earnings per share have been computed based on the following: (Dollar amounts in thousands) Three months ended March 31, 2016 2015 Net earnings $ 2,567 $ 1,799 Average number of shares outstanding 4,550,000 4,487,000 Effect of dilutive options 137,000 136,000 Average number of shares outstanding used to calculate diluted earnings per share 4,687,000 4,623,000 Anti dilutive options that were excluded from the calculation of diluted EPS totaled 52,000 and 96,000 at March 31, 2016 and 2015, respectively. |
D. SECURITIES AVAILABLE FOR SAL
D. SECURITIES AVAILABLE FOR SALE | 3 Months Ended |
Mar. 31, 2016 | |
SECURITIES AVAILABLE FOR SALE | |
SECURITIES AVAILABLE FOR SALE | The amortized cost and carrying values of securities available-for-sale are as follows: (Dollar amounts in thousands) Amortized Unrealized Unrealized Fair cost gains losses value March 31, 2016 U.S. Treasury securities $ 3,978 $ 60 $ $ 4,038 Obligations of U.S. government agencies 76,853 927 (1 ) 77,779 Mortgage-backed securities 63,906 1,436 (46 ) 65,296 Obligations of states and political subdivisions 137,022 3,930 (40 ) 140,912 Corporate debt 41,211 242 (82 ) 41,371 $ 322,970 $ 6,595 $ (169 ) $ 329,396 December 31, 2015 U.S. Treasury securities $ 7,004 $ 14 $ (18 ) $ 7,000 Obligations of U.S. government agencies 84,842 168 (401 ) 84,609 Mortgage-backed securities 61,579 641 (557 ) 61,663 Obligations of states and political subdivisions 132,125 3,148 (83 ) 135,190 Corporate debt 41,045 50 (350 ) 40,745 $ 326,595 $ 4,021 $ (1,409 ) $ 329,207 An analysis of gross unrealized losses of the available-for-sale investment securities portfolio as of March 31, 2016 and December 31, 2015, respectively, is as follows: (Dollar amounts in thousands) Less than 12 Months Total 12 Months Total or Longer Total Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses March 31, 2016 U.S. Treasury securities $ $ $ $ $ $ Obligations of U.S. government agencies 1,000 1,011 (1 ) 2,011 (1 ) Mortgage-backed securities 1,506 (11 ) 9,693 (35 ) 11,199 (46 ) Obligations of states and political subdivisions 8,412 (40 ) 8,412 (40 ) Corporate debt 11,535 (71 ) 3,489 (11 ) 15,024 (82 ) Total $ 22,453 $ (122 ) $ 14,193 $ (47 ) $ 36,646 $ (169 ) (Dollar amounts in thousands) Less than 12 months Total 12 months Total or Longer Total Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2015: Value Losses Value Losses Value Losses U. S. Treasury securities $ 5,042 $ (18 ) $ $ $ 5,042 $ (18 ) Obligations of U.S. government agencies 55,382 (339 ) 4,976 (62 ) 60,358 (401 ) Mortgage-backed securities 19,458 (192 ) 16,714 (365 ) 36,172 (557 ) Obligations of states and political subdivisions 14,988 (73 ) 1,856 (10 ) 16,844 (83 ) Corporate debt 27,130 (300 ) 4,449 (50 ) 31,579 (350 ) Total $ 122,000 $ (922 ) $ 27,995 $ (487 ) $ 149,995 $ (1,409 ) At March 31, 2016, there were 8 securities in an unrealized loss position for greater than 12 consecutive months. At the same time, there were 28 securities in an unrealized loss position for twelve or less than twelve consecutive months. Management periodically evaluates each security in an unrealized loss position to determine if the impairment is temporary or other-than-temporary. The unrealized losses are due solely to interest rate changes and the Company does not intend to sell nor expects it will be required to sell investment securities identified with impairments prior to the earliest of forecasted recovery or the maturity of the underlying investment security. Management has determined that no investment security was other-than-temporarily impaired at March 31, 2016. The amortized cost and carrying value of available-for-sale debt securities as of March 31, 2016 by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. March 31, 2016: (Dollar amounts in thousands) Amortized Fair Cost Value Available-for-sale: Due in one year or less $ 11,961 $ 12,017 Due after one through five years 153,924 156,274 Due after five years through ten years 126,924 130,411 Due after ten years 30,161 30,694 $ 322,970 $ 329,396 For the three months ended March 31, 2016 and March 31, 2015, respectively, gross realized gains amounted to $184,000 and $69,000, on gross securities sold or called of $12,282,000 and $12,272,000, respectively. For the three months ended March 31, 2016 and 2015, respectively, there were no gross realized losses. At March 31, 2016, securities with an amortized cost of $97,771,000 and fair value of $99,499,000 were pledged as collateral for public deposits and for other purposes required by law. |
E. LOANS
E. LOANS | 3 Months Ended |
Mar. 31, 2016 | |
LOANS | |
LOANS | Loans are summarized as follows at March 31, 2016 and December 31, 2015: March 31, 2016: Total FNB Balance Bancorp March 31, (Dollar amounts in thousands) Originated PNCI PCI 2016 Commercial real estate $ 336,808 $ 73,995 $ 1,280 $ 412,083 Real estate construction 40,375 2,091 42,466 Real estate multi-family 50,130 9,769 59,899 Real estate 1 to 4 family 145,561 27,971 173,532 Commercial & industrial 46,000 9,608 55,608 Consumer loans 1,675 1,675 Gross loans 620,549 123,434 1,280 745,263 Net deferred loan fees (1,329 ) (1,329 ) Allowance for loan losses (9,943 ) (9,943 ) Net loans $ 609,277 $ 123,434 $ 1,280 $ 733,991 December 31, 2015: Total FNB Balance Bancorp December 31, (Dollar amounts in thousands) Originated PNCI PCI 2015 Commercial real estate $ 314,141 $ 84,548 $ 1,304 $ 399,993 Real estate construction 38,909 5,907 44,816 Real estate multi-family 47,607 15,990 63,597 Real estate 1 to 4 family 153,872 18,092 171,964 Commercial & industrial 39,894 12,139 52,033 Consumer loans 1,574 1,574 Gross loans 595,997 136,676 1,304 733,977 Net deferred loan fees (1,260 ) (1,260 ) Allowance for loan losses (9,970 ) (9,970 ) Net loans $ 584,767 $ 136,676 $ 1,304 $ 722,747 Note: PNCI means Purchased, Not Credit Impaired. PCI means Purchased, Credit Impaired. These designations are assigned to the purchased loans on their date of purchase. Once the loan designation has been made, each loan will retain its designation for the life of the loan. Recorded Investment in Loans at March 31, 2016 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real Estate Construction Family Family & industrial Consumer Total Loans: Ending balance $ 412,083 $ 42,466 $ 59,899 $ 173,532 $ 55,608 $ 1,675 $ 745,263 Ending balance: individually evaluated for impairment $ 10,700 $ 2,102 $ $ 4,115 $ 1,572 $ $ 18,489 Ending balance collectively evaluated for impairment $ 401,383 $ 40,364 $ 59,899 $ 169,417 $ 54,036 $ 1,675 $ 726,774 Recorded Investment in Loans at December 31, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 399,993 $ 44,816 $ 63,597 $ 171,964 $ 52,033 $ 1,574 $ 733,977 Ending balance: individually evaluated for impairment $ 10,803 $ 2,154 $ $ 4,218 $ 1,782 $ $ 18,957 Ending balance: collectively evaluated for impairment $ 389,190 $ 42,662 $ 63,597 $ 167,746 $ 50,251 $ 1,574 $ 715,020 Recorded Investment in Loans at March 31, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 322,414 $ 34,237 $ 53,703 $ 128,105 $ 45,589 $ 1,697 $ 585,745 Ending balance: individually evaluated for impairment $ 9,460 $ 2,368 $ $ 4,673 $ 2,226 $ 60 $ 18,787 Ending balance collectively evaluated for impairment $ 312,954 $ 31,869 $ 53,703 $ 123,432 $ 43,363 $ 1,637 $ 566,958 The following tables provide information pertaining to impaired loans originated and PNCI loans as of and for the quarter ended March 31, 2016 and the year ended December 31, 2015. Impaired Loans As of and for the quarter ended March 31, 2016 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 8,075 $ 9,164 $ $ 9,212 $ 232 Commercial real estate construction 2,102 2,285 2,311 37 Residential- 1 to 4 family 468 468 457 8 Commercial & industrial 516 516 522 7 Total 11,161 12,433 12,502 284 With an allowance recorded Commercial real estate $ 2,625 $ 2,629 $ 89 $ 2,641 $ 38 Commercial real estate construction Residential- 1 to 4 family 3,647 3,669 460 3,250 35 Commercial & industrial 1,056 1,272 105 1,303 0 Total 7,328 7,570 654 7,194 73 Total Commercial real estate $ 10,700 $ 11,793 $ 89 $ 11,853 $ 270 Commercial real estate construction 2,102 2,285 2,311 37 Residential- 1 to 4 family 4,115 4,137 460 3,707 43 Commercial & industrial 1,572 1,788 105 1,825 7 $ 18,489 $ 20,003 $ 654 $ 19,696 $ 357 Impaired Loans As of and for the year ended December 31, 2015 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 8,169 $ 9,271 $ $ 8,379 $ 282 Commercial real estate construction 2,154 2,337 2,264 130 Residential- 1 to 4 family 457 457 460 36 Commercial and industrial 524 524 731 27 Consumer Total 11,304 12,589 11,834 475 With an allowance recorded Commercial real estate $ 2,634 $ 2,638 $ 96 $ 2,664 $ 160 Residential- 1 to 4 family 3,761 3,782 479 3,786 149 Commercial and industrial 1,258 1,497 182 1,484 7 Consumer Total 7,653 7,917 757 7,934 316 Total Commercial real estate $ 10,803 $ 11,909 $ 96 $ 11,043 $ 442 Commercial real estate construction 2,154 2,337 2,264 130 Residential- 1 to 4 family 4,218 4,239 479 4,246 185 Commercial and industrial 1,782 2,021 182 2,215 34 Consumer Grand total $ 18,957 $ 20,506 $ 757 $ 19,768 $ 791 Impaired Loans As of and for the quarter ended March 31, 2015 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 4,432 $ 5,315 $ $ 4,447 $ 63 Commercial real estate construction 2,368 2,551 2,371 33 Residential- 1 to 4 family 1,483 1,484 1,485 14 Commercial & industrial 564 801 573 10 Consumer Total 8,847 10,151 8,876 120 With an allowance recorded Commercial real estate $ 5,028 $ 5,031 $ 131 $ 5,048 $ 67 Commercial real estate construction Residential- 1 to 4 family 3,190 3,207 510 3,218 31 Commercial & industrial 1,662 2,014 279 1,698 4 Consumer 60 60 8 62 3 Total 9,940 10,312 928 10,026 105 Total Commercial real estate $ 9,460 $ 10,346 $ 131 $ 9,495 $ 130 Commercial real estate construction 2,368 2,551 2,371 33 Residential - 1 to 4 family 4,673 4,691 510 4,703 45 Commercial & industrial 2,226 2,815 279 2,271 14 Consumer 60 60 8 62 3 Grand total $ 18,787 $ 20,463 $ 928 $ 18,902 $ 225 Nonaccrual loans totaled $6,882,000 and $7,915,000 as of March 31, 2016 and December 31, 2015. Impaired loans not on nonaccrual are loans that have been restructured and are performing under modified loan agreements, and where principal and interest is determined to be collectible. Nonaccrual loans are loans where principal and interest have not been determined to be fully collectible. Loans on Nonaccrual Status as of (Dollar amounts in thousands) March 31, December 31, 2016 2015 Commercial real estate $ 5,210 $ 6,021 Real estate - 1 to 4 family 546 636 Commercial & industrial 1,126 1,258 Consumer Total $ 6,882 $ 7,915 Interest income on impaired loans of $357,000 and $791,000 was recognized for cash payments received during the quarter ended March 31, 2016 and the year ended December 31, 2015, respectively. Interest income on impaired loans recognized for cash payments received for the three months ended March 31, 2015 was $225,000. The amount of interest on impaired loans not collected for the quarter ended March 31, 2016 was $132,000, and the quarter ended March 31, 2015 was $106,000. The cumulative amount of unpaid interest on impaired loans was $3,537,000 and $3,050,000 as of March 31, 2016 and March 31, 2015, respectively. Troubled Debt Restructurings Total troubled debt restructured loans outstanding at (Dollars in thousands) March 31, 2016 December 31, 2015 Non- Non- Accrual accrual Total Accrual accrual Total status status modifications status status modifications Commercial real estate $ 5,490 $ 1,280 $ 6,770 $ 4,775 $ $ 4,775 Real Estate construction 1,232 1,232 1,283 1,283 Real estate 1 to 4 family 3,570 3,570 3,583 2,060 5,643 Commercial & industrial 516 1,006 1,522 524 1,043 1,567 Total $ 10,808 $ 2,286 $ 13,094 $ 10,165 $ 3,103 $ 13,268 Modification Categories The Company offers a variety of modifications to borrowers. The modification categories offered can generally be described in the following categories. Rate Modification Term modification Interest Only Modification Payment Modification As of March 31, 2016, there were no commitments for additional funding of troubled debt restructured loans. As of March 31, 2016, there were no loans modified within the previous 12 months and for which there was a payment default during the period. All restructurings were a modification of interest rate and/or payment. There were no principal reductions granted. There were no new modifications during the quarters ended March 31, 2016 or March 31, 2015. As of March 31, 2015, there were no loans modified within the previous 12 months and for which there was a payment default during the period. All restructurings were a modification of interest rate and/or payment. There were no principal reductions granted. Allowance for Credit Losses For the Three Months Ended March 31, 2016 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction Family 4 Family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,059 $ 589 $ 243 $ 2,176 $ 853 $ 50 $ 9,970 Charge-offs (164 ) (5 ) (169 ) Recoveries 2 12 53 67 Provision for (recovery (recovery of) of) loan losses 52 (2 ) (32 ) (39 ) 99 (3 ) 75 Ending balance $ 6,113 $ 587 $ 211 $ 2,149 $ 841 $ 42 $ 9,943 Ending balance: individually evaluated for impairment $ 89 $ $ $ 460 $ 105 $ $ 654 Ending balance: collectively evaluated for $ 6,024 $ 587 $ 211 $ 1,689 $ 736 $ 42 $ 9,289 Allowance for Credit Losses As of and For the Year Ended December 31, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Charge-offs (45 ) (36 ) (81 ) Recoveries 576 15 60 5 656 (Recovery of) provision for loan losses (66 ) (260 ) 37 241 (280 ) 23 (305 ) Ending balance $ 6,059 $ 589 $ 243 $ 2,176 $ 853 $ 50 $ 9,970 Ending balance: individually evaluated for impairment $ 96 $ $ $ 479 $ 182 $ $ 757 Ending balance: collectively evaluated for impairment $ 5,963 $ 589 $ 243 $ 1,697 $ 671 $ 50 $ 9,213 Allowance for Credit Losses For the Three Months Ended March 31, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Charge-offs (45 ) (6 ) (51 ) Recoveries 6 14 20 Provision (250 ) 571 (54 ) (75 ) (126 ) 9 75 Ending balance $ 5,305 $ 1,420 $ 152 $ 1,845 $ 961 $ 61 $ 9,744 Ending balance: individually evaluated for impairment $ 131 $ $ $ 510 $ 279 $ 8 $ 928 Ending balance: collectively evaluated for impairment $ 5,174 $ 1,420 $ 152 $ 1,335 $ 682 $ 53 $ 8,816 Risk rating system Loans to borrowers graded as pass or pooled loans represent loans to borrowers of acceptable or better credit quality. They demonstrate sound financial positions, repayment capacity and credit history. They have an identifiable and stable source of repayment. Special mention loans have potential weaknesses that deserve managements attention. If left uncorrected these potential weaknesses may result in a deterioration of the repayment prospects for the asset or in the Banks credit position at some future date. These assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Substandard loans are inadequately protected by current sound net worth, paying capacity of the borrower, or pledged collateral. Loans are normally classified as Substandard when there are unsatisfactory characteristics causing more than acceptable levels of risk. A substandard loan normally has one or more well-defined weaknesses that could jeopardize the repayment of the debt. For example, a) cash flow deficiency, which may jeopardize future payments; b) sale of non-collateral assets has become primary source of repayment; c) the borrower is bankrupt; or d) for any other reason, future repayment is dependent on court action. Doubtful loans represent credits with weakness inherent in the Substandard classification and where collection or liquidation in full is highly questionable. To be classified Doubtful, there must be specific pending factors which prevent the Loan Review Officer from determining the amount of loss contained in the credit. When the amount of loss can be reasonably estimated, that amount is classified as Loss and the remainder is classified as Substandard. Real Estate Multi-Family Our multi-family commercial real estate loans are secured by multi-family properties located primarily in San Mateo and San Francisco counties. These loans are made to investors where our primary source of repayment is from cash flows generated by the properties, through rent collections. The borrowers promissory notes are secured with recorded liens on the underlying properties. The borrowers would normally also be required to personally guarantee repayment of the loans. The Bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have multiple sources of income, so if cash flow generated from the property declines, at least in the short term, the borrowers can normally cover these short term cash flow deficiencies from their available cash reserves. Risk of loss to the Bank is increased when there are cash flow decreases sufficiently large and for such a prolonged period of time that loan payments can no longer be made by the borrowers. Commercial Real Estate Loans Commercial real estate loans consist of loans secured by non-farm, non-residential properties, including, but not limited to industrial, hotel, assisted care, retail, office and mixed use buildings. Our commercial real estate loans are made primarily to investors or small businesses where our primary source of repayment is from cash flows generated by the properties, either through rent collection or business profits. The borrowers promissory notes are secured with recorded liens on the underlying property. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have multiple sources of income, so if cash flow generated from the property declines, at least in the short term, the borrowers can normally cover these short term cash flow deficiencies from their available cash reserves. Risk of loss to the Bank is increased when there are cash flow decreases sufficiently large and for such a prolonged period of time that loan payments can no longer be made by the borrowers. Real Estate Construction Loans Our real estate construction loans are generally made to borrowers who are rehabilitating a building, converting a building use from one type of use to another, or developing land and building residential or commercial structures for sale or lease. The borrowers promissory notes are secured with recorded liens on the underlying property. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Generally, our borrowers have sufficient resources to make the required construction loan payments during the construction and absorption or lease-up period. After construction is complete, the loans are normally paid off from proceeds from the sale of the building or through a refinance to a commercial real estate loan. Risk of loss to the Bank is increased when there are material construction cost overruns, significant delays in the time to complete the project and/or there has been a material drop in the value of the projects in the marketplace since the inception of the loan. Real Estate-1 to 4 Family Loans Our residential real estate loans are generally made to borrowers who are buying or refinancing their primary personal residence or a rental property of 1-4 single family residential units. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when borrowers lose their primary source of income and/or property values decline significantly. Commercial and Industrial Loans Our commercial and industrial loans are generally made to small businesses to provide them with at least some of the working capital necessary to fund their daily business operations. These loans are generally either unsecured or secured by fixed assets, accounts receivable and/or inventory. The borrowers would normally also be required to personally guarantee repayment of the loan. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when our small business customers experience a significant business downturn, incur significant financial losses, or file for relief from creditors through bankruptcy proceedings. Consumer Loans Our consumer and installment loans generally consist of personal loans, credit card loans, automobile loans or other loans secured by personal property. The Bank uses conservative underwriting standards in reviewing applications for credit. Risk of loss to the Bank is increased when borrowers lose their primary source of income, or file for relief from creditors through bankruptcy proceedings. Age Analysis of Past Due Loans As of March 31, 2016 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ $ $ 140 $ 140 $ 336,668 $ 336,808 Real estate construction 1,250 1,250 39,125 40,375 Real estate multi family 50,130 50,130 Real estate-1 to 4 family 1,057 690 1,747 143,814 145,561 Commercial & industrial 384 1,056 1,440 44,560 46,000 Consumer 1,675 1,675 Total $ 2,691 $ 690 $ 1,196 $ 4,577 $ 615,972 $ 620,549 Purchased Not credit impaired Commercial real estate $ $ 551 $ $ 551 $ 73,444 $ 73,995 Real estate construction 2,091 2,091 Real estate multi-family 9,769 9,769 Real estate-1 to 4 family 12 12 27,959 27,971 Commercial & industrial 70 70 9,538 9,608 Total $ $ 551 $ 82 $ 633 $ 122,801 $ 123,434 Purchased Credit impaired Commercial real estate $ $ $ $ $ 1,280 $ 1,280 Total $ $ $ $ $ 1,280 $ 1,280 At March 31, 2016, there were no loans that were 90 days or more past due where interest was still accruing. The over 90 days column includes nonaccruals that were over 90 days, but does not include loans that are in nonaccrual status for reasons other than past due. Age Analysis of Past Due Loans As of December 31, 2015 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ 1,541 $ $ $ 1,541 $ 312,600 $ 314,141 Real estate construction 706 725 1431 37,478 38,909 Real estate multi family 47,607 47,607 Real estate 1 to 4 family 1,363 737 71 2,171 151,701 153,872 Commercial & industrial 1,258 1,258 38,636 39,894 Consumer 1,574 1,574 Total $ 3,610 $ 1,462 $ 1,329 $ 6,401 $ 589,596 $ 595,997 Purchased Not credit impaired Commercial real estate $ $ $ 3,810 $ $ 84,548 $ 84,548 Real estate construction 5,907 5,907 Real estate multi-family 15,990 15,990 Real estate 1 to 4 family 175 175 17,917 18,092 Commercial & industrial 70 70 12,069 12,139 Total $ 245 $ $ 3,810 $ 245 $ 136,431 $ 136,676 Purchased Credit impaired Commercial real estate $ $ $ $ $ 1,304 $ 1,304 Total $ $ $ $ $ 1,304 $ 1,304 At December 31, 2015, there were no loans that were 90 days or more past due where interest was still accruing. The over 90 days column includes nonaccrual loans that were over 90 days, but does not include loans that are in nonaccrual status for reasons other than past due. Credit Quality Indicators As of March 31, 2016 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 330,961 $ 1,844 $ 4,003 $ $ 336,808 Real estate construction 39,364 1,011 40,375 Real estate multi-family 50,130 50,130 Real estate-1 to 4 family 144,827 734 145,561 Commercial & industrial 45,360 629 11 46,000 Consumer loans 1,675 1,675 Totals $ 612,317 $ 1,844 $ 6,377 $ 11 $ 620,549 Purchased Not credit impaired Commercial real estate $ 62,646 $ 2,880 $ 8,457 $ 12 $ 73,995 Real estate construction 2,091 2,091 Real estate multi-family 9,769 9,769 Real estate-1 to 4 family 27,971 27,971 Commercial & industrial 9,516 92 9,608 Total $ 111,993 $ 2,880 $ 8,549 $ 12 $ 123,434 Purchased Credit impaired Commercial real estate $ 1,280 Total $ 1,280 Credit Quality Indicators As of December 31, 2015 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 308,164 $ 1,857 $ 4,120 $ $ 314,141 Real estate construction 37,850 1,059 38,909 Real estate multi-family 47,607 47,607 Real estate 1 to 4 family 153,285 587 153,872 Commercial & industrial 39,287 451 156 39,894 Consumer loans 1,574 1,574 Totals $ 587,767 $ 1,857 $ 6,217 $ 156 $ 595,997 Purchased Not credit impaired Commercial real estate $ 68,936 $ 3,455 $ 12,145 $ 12 $ 84,548 Real estate construction 5,907 5,907 Real estate multi-family 15,990 15,990 Real estate 1 to 4 family 18,092 18,092 Commercial & industrial 12,044 95 12,139 Total $ 120,969 $ 3,455 $ 12,240 $ 12 $ 136,676 Purchased Credit impaired Commercial real estate $ 1,304 Total $ 1,304 |
F. BORROWINGS
F. BORROWINGS | 3 Months Ended |
Mar. 31, 2016 | |
BORROWINGS | |
BORROWINGS | Federal Home Loan Bank advances There were no outstanding advances at March 31, 2016. Corporate loan On March 27, 2014, FNB Bancorp received funding under a $6,000,000 term loan credit facility. This loan carries a variable rate of interest that fluctuates on a monthly basis. The interest rate is based on the 3 month LIBOR rate plus 4%. Payments of $50,000 in principal plus accrued interest are payable monthly. The first loan payment was due May 1, 2014. The maturity date on this credit facility is March 26, 2019. On the maturity date, all outstanding principal plus accrued interest shall become due and payable. FNB Bancorp has pledged it stock ownership in First National Bank of Northern California as collateral subject to the terms and conditions contained in the Loan Agreement and the Pledge and Security Agreement. FNB Bancorp retains the right to prepay this debt at any time upon not less than 7 days prior written notice to Lender. The proceeds from this loan were contributed to the Bank as an additional capital contribution. This capital contribution qualified as Tier 1 capital for the Bank under regulatory capital guidelines. |
G. FAIR VALUE MEASUREMENT
G. FAIR VALUE MEASUREMENT | 3 Months Ended |
Mar. 31, 2016 | |
FAIR VALUE MEASUREMENT TABLES | |
FAIR VALUE MEASUREMENT | The following table presents information about the Companys assets and liabilities measured at fair value as of March 31, 2016 and December 31, 2015, and indicates the fair value techniques used by the Company to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Companys assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. Transfers between levels of the fair value hierarchy and recognized on the actual date of the event or circumstances that caused the transfer, which generally corresponds with the Companys quarterly valuation process. During the first three months of 2016 and 2015 there were no transfers of assets or liabilities between hierarchy levels. The following tables present the recorded amounts of assets measured at fair value on a recurring basis: Fair Value Measurements (Dollar amounts in thousands) at March 31, 2016, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 3/31/2016 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 4,038 $ 4,038 $ $ Obligations of U.S. Government agencies 77,779 77,779 Mortgage-backed securities 65,296 65,296 Obligations of states and political subdivisions 140,912 140,912 Corporate debt 41,371 41,371 Total assets measured at fair value $ 329,396 $ 4,038 $ 325,358 $ Fair Value Measurements (Dollar amounts in thousands) at December 31, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2015 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 7,000 $ 7,000 $ $ Obligations of U.S. Government agencies 84,609 84,609 Mortgage-backed securities 61,663 61,663 Obligations of states and political subdivisions 135,190 135,190 Corporate debt 40,745 40,745 Total assets measured at fair value $ 329,207 $ 7,000 $ 322,207 $ The following tables present the recorded amounts of assets measured at fair value on a non-recurring basis: Fair Value Measurements (Dollar amounts in thousands) at March 31, 2016, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 3/31/2016 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate loans $ $ $ $ Residential-1 to 4 family loans 215 215 Commercial and industrial loans 950 950 Consumer loans Total impaired loans measured at fair value $ 1,165 $ $ $ 1,165 Fair Value Measurements (Dollar amounts in thousands) at December 31, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2015 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate loans $ 136 $ $ $ 136 Residential-1 to 4 family loans 301 301 Commercial and industrial loans 1,065 1,065 Consumer loans Total impaired loans measured at fair value $ 1,502 $ $ $ 1,502 The Bank does not record originated loans at fair value. However, from time to time, if a loan is considered impaired, a specific allocation within the allowance for loan losses may be required. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and cash flows. Those impaired loans not requiring an allowance represent loans for which the value of the expected repayments or collateral exceed the recorded investments in such loans. Impaired loans where an allowance is established based on the fair value of collateral or when the impaired loan has been written down to fair value require classification in the fair value hierarchy. If the fair value of the collateral is based on a non-observable market price or a current appraised value, the Bank records the impaired loans as nonrecurring Level 3. When an appraised value is not available, or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Bank also records the impaired loans as nonrecurring Level 3. Other real estate owned is carried at the lower of historical cost or fair value less costs to sell. An appraisal (a Level 3 valuation) is obtained at the time the Bank acquires property through the foreclosure process. Any loan balance outstanding that exceeds the appraised value of the property is charged off against the allowance for loan loss at the time the property is acquired. Subsequent to acquisition, the Bank updates the propertys appraised value on at least an annual basis. If the value of the property has declined during the year, a loss due to valuation impairment charge is recorded along with a corresponding reduction in the book carrying value of the property. Historical costs of other real estate owned were below fair value estimates at March 31, 2016 and December 31, 2015. The Bank obtains third party appraisals on its impaired loans held-for-investment and foreclosed assets to determine fair value. When the appraisals are received, Management reviews the assumptions and methodology utilized in the appraisal, as well as the overall resulting value in conjunction with independent data sources such as recent market data and industry-wide statistics. We generally use a 6% discount for selling costs which is applied to all properties, regardless of size. Generally, the third party appraisals apply the market approach, which is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable (that is, similar) assets, liabilities, or a group of assets and liabilities, such as a business. Adjustments are then made based on the type of property, age of appraisal, current status of property and other related factors to estimate the current value of collateral. The value of OREO is determined based on independent appraisals, similar to the process used for impaired loans, discussed above, and is generally classified as Level 3. Fair Values of Financial Instruments The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments. Cash and Cash Equivalents, including interest-bearing time deposits with financial institutions The carrying amounts reported in the balance sheet for cash and short-term instruments are a reasonable estimate of fair value, which will approximate their historical cost. Securities Available-for-Sale Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Loans Receivable For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values and credit risk factors. For fixed rate loans, fair values are based on discounted cash flows, credit risk factors, and liquidity factors. Other equity securities These are mostly Federal Reserve Bank stock and Federal Home Loan Bank stock, carried in Other Assets. They are not traded, and not available for sale, but rather have a stated value that does not change. Deposit liabilities The fair values disclosed for demand deposits (e.g., interest and non-interest checking, savings, and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The fair values for fixed-rate certificates of deposit are based on discounted cash flows. Federal Home Loan Bank Advances The fair values of Federal Home Loan Bank Advances are based on discounted cash flows. The discount rate is equal to the market rate currently offered on similar products. Notes payable Fair value is equal to the current balance. They represent a corporate loan with a monthly variable rate, based on the 3-month LIBOR rate plus 4%. Accrued Interest Receivable and Payable The interest receivable and payable balances approximate their fair value due to the short-term nature of their settlement dates. Undisbursed loan commitments, lines of credit, Mastercard line and standby letters of credit The fair value of these off-balance sheet items are based on discounted cash flows of expected fundings. The Bank has excluded non-financial assets and non-financial liabilities defined by the Codification (ASC 820-10-15-A), such as Bank premises and equipment, deferred taxes and other liabilities. In addition, the Bank has not disclosed the fair value of financial instruments specifically excluded from disclosure requirements of the Financial Instruments Topic of the Codification (ASC 825-10-50-8), such as Bank-owned life insurance policies. The following table provides summary information on the estimated fair value of financial instruments at March 31, 2016: March 31, 2016 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 37,737 $ 37,737 $ 37,737 Interest-bearing time deposits with financial institutions 205 205 $ 205 Securities available for sale 329,396 329,396 4,038 325,358 Loans 746,610 737,339 $ 737,339 Other equity securities 6,756 6,756 6,756 Accrued interest receivable 4,603 4,603 4,603 Financial liabilities: Deposits 1,030,251 1,030,842 904,821 126,021 Note payable 4,800 4,800 4,800 Accrued interest payable 244 244 244 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit 1,741 1,741 The carrying amount of loans include $6,882,000 of nonaccrual loans (loans that are not accruing interest) as of March 31, 2016. The fair value of nonaccrual loans is based on the collateral values that secure the loans or the cash flows expected to be received. The following table provides summary information on the estimated fair value of financial instruments at December 31, 2015: December 31, 2015 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 12,314 $ 12,314 $ 12,314 Interest-bearing time deposits with financial institutions 205 205 $ 205 Securities available for sale 329,207 329,207 7,000 322,207 Loans 733,977 725,196 $ 725,196 Other equity securities 6,748 6,748 6,748 Accrued interest receivable 4,511 4,511 4,511 Financial liabilities: Deposits 983,199 983,771 857,759 125,430 Federal Home Loan Bank advances 17,000 17,000 17,000 Note payable 4,950 4,950 4,950 Accrued interest payable 236 236 236 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit 1,673 1,673 The carrying amounts of loans include $7,915,000 of nonaccrual loans (loans that are not accruing interest) as of December 31, 2015. The fair value of nonaccrual loans is based on the collateral values that secure the loans or the cash flows expected to be received. |
C. EARNINGS PER SHARE CALCULA15
C. EARNINGS PER SHARE CALCULATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings per share data: | |
Earnings per common share (EPS) computed | (Dollar amounts in thousands) Three months ended March 31, 2016 2015 Net earnings $ 2,567 $ 1,799 Average number of shares outstanding 4,550,000 4,487,000 Effect of dilutive options 137,000 136,000 Average number of shares outstanding used to calculate diluted earnings per share 4,687,000 4,623,000 |
D. SECURITIES AVAILABLE FOR S16
D. SECURITIES AVAILABLE FOR SALE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
SECURITIES AVAILABLE FOR SALE TABLES | |
Schedule of amortized cost and carrying values of securities available-for-sale | (Dollar amounts in thousands) Amortized Unrealized Unrealized Fair cost gains losses value March 31, 2016 U.S. Treasury securities $ 3,978 $ 60 $ $ 4,038 Obligations of U.S. government agencies 76,853 927 (1 ) 77,779 Mortgage-backed securities 63,906 1,436 (46 ) 65,296 Obligations of states and political subdivisions 137,022 3,930 (40 ) 140,912 Corporate debt 41,211 242 (82 ) 41,371 $ 322,970 $ 6,595 $ (169 ) $ 329,396 December 31, 2015 U.S. Treasury securities $ 7,004 $ 14 $ (18 ) $ 7,000 Obligations of U.S. government agencies 84,842 168 (401 ) 84,609 Mortgage-backed securities 61,579 641 (557 ) 61,663 Obligations of states and political subdivisions 132,125 3,148 (83 ) 135,190 Corporate debt 41,045 50 (350 ) 40,745 $ 326,595 $ 4,021 $ (1,409 ) $ 329,207 |
Schedule analysis of gross unrealized losses of the available-for-sale investment securities | (Dollar amounts in thousands) Less than 12 Months Total 12 Months Total or Longer Total Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses March 31, 2016 U.S. Treasury securities $ $ $ $ $ $ Obligations of U.S. government agencies 1,000 1,011 (1 ) 2,011 (1 ) Mortgage-backed securities 1,506 (11 ) 9,693 (35 ) 11,199 (46 ) Obligations of states and political subdivisions 8,412 (40 ) 8,412 (40 ) Corporate debt 11,535 (71 ) 3,489 (11 ) 15,024 (82 ) Total $ 22,453 $ (122 ) $ 14,193 $ (47 ) $ 36,646 $ (169 ) (Dollar amounts in thousands) Less than 12 months Total 12 months Total or Longer Total Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2015: Value Losses Value Losses Value Losses U. S. Treasury securities $ 5,042 $ (18 ) $ $ $ 5,042 $ (18 ) Obligations of U.S. government agencies 55,382 (339 ) 4,976 (62 ) 60,358 (401 ) Mortgage-backed securities 19,458 (192 ) 16,714 (365 ) 36,172 (557 ) Obligations of states and political subdivisions 14,988 (73 ) 1,856 (10 ) 16,844 (83 ) Corporate debt 27,130 (300 ) 4,449 (50 ) 31,579 (350 ) Total $ 122,000 $ (922 ) $ 27,995 $ (487 ) $ 149,995 $ (1,409 ) |
Schedule of amortized cost and carrying value of available-for-sale debt securities by contractual maturity | March 31, 2016: (Dollar amounts in thousands) Amortized Fair Cost Value Available-for-sale: Due in one year or less $ 11,961 $ 12,017 Due after one through five years 153,924 156,274 Due after five years through ten years 126,924 130,411 Due after ten years 30,161 30,694 $ 322,970 $ 329,396 |
E. LOANS (Tables)
E. LOANS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
LOANS TABLES | |
Schedule Of Loans Outstanding | March 31, 2016: Total FNB Balance Bancorp March 31, (Dollar amounts in thousands) Originated PNCI PCI 2016 Commercial real estate $ 336,808 $ 73,995 $ 1,280 $ 412,083 Real estate construction 40,375 2,091 42,466 Real estate multi-family 50,130 9,769 59,899 Real estate 1 to 4 family 145,561 27,971 173,532 Commercial & industrial 46,000 9,608 55,608 Consumer loans 1,675 1,675 Gross loans 620,549 123,434 1,280 745,263 Net deferred loan fees (1,329 ) (1,329 ) Allowance for loan losses (9,943 ) (9,943 ) Net loans $ 609,277 $ 123,434 $ 1,280 $ 733,991 December 31, 2015: Total FNB Balance Bancorp December 31, (Dollar amounts in thousands) Originated PNCI PCI 2015 Commercial real estate $ 314,141 $ 84,548 $ 1,304 $ 399,993 Real estate construction 38,909 5,907 44,816 Real estate multi-family 47,607 15,990 63,597 Real estate 1 to 4 family 153,872 18,092 171,964 Commercial & industrial 39,894 12,139 52,033 Consumer loans 1,574 1,574 Gross loans 595,997 136,676 1,304 733,977 Net deferred loan fees (1,260 ) (1,260 ) Allowance for loan losses (9,970 ) (9,970 ) Net loans $ 584,767 $ 136,676 $ 1,304 $ 722,747 |
Schedule of Recorded Investment in Loans | Recorded Investment in Loans at March 31, 2016 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to 4 Commercial Real Estate Construction Family Family & industrial Consumer Total Loans: Ending balance $ 412,083 $ 42,466 $ 59,899 $ 173,532 $ 55,608 $ 1,675 $ 745,263 Ending balance: individually evaluated for impairment $ 10,700 $ 2,102 $ $ 4,115 $ 1,572 $ $ 18,489 Ending balance collectively evaluated for impairment $ 401,383 $ 40,364 $ 59,899 $ 169,417 $ 54,036 $ 1,675 $ 726,774 Recorded Investment in Loans at December 31, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 399,993 $ 44,816 $ 63,597 $ 171,964 $ 52,033 $ 1,574 $ 733,977 Ending balance: individually evaluated for impairment $ 10,803 $ 2,154 $ $ 4,218 $ 1,782 $ $ 18,957 Ending balance: collectively evaluated for impairment $ 389,190 $ 42,662 $ 63,597 $ 167,746 $ 50,251 $ 1,574 $ 715,020 Recorded Investment in Loans at March 31, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction family 4 family & industrial Consumer Total Loans: Ending balance $ 322,414 $ 34,237 $ 53,703 $ 128,105 $ 45,589 $ 1,697 $ 585,745 Ending balance: individually evaluated for impairment $ 9,460 $ 2,368 $ $ 4,673 $ 2,226 $ 60 $ 18,787 Ending balance collectively evaluated for impairment $ 312,954 $ 31,869 $ 53,703 $ 123,432 $ 43,363 $ 1,637 $ 566,958 |
Schedule of Impaired Loans Allowance | Impaired Loans As of and for the quarter ended March 31, 2016 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 8,075 $ 9,164 $ $ 9,212 $ 232 Commercial real estate construction 2,102 2,285 2,311 37 Residential- 1 to 4 family 468 468 457 8 Commercial & industrial 516 516 522 7 Total 11,161 12,433 12,502 284 With an allowance recorded Commercial real estate $ 2,625 $ 2,629 $ 89 $ 2,641 $ 38 Commercial real estate construction Residential- 1 to 4 family 3,647 3,669 460 3,250 35 Commercial & industrial 1,056 1,272 105 1,303 0 Total 7,328 7,570 654 7,194 73 Total Commercial real estate $ 10,700 $ 11,793 $ 89 $ 11,853 $ 270 Commercial real estate construction 2,102 2,285 2,311 37 Residential- 1 to 4 family 4,115 4,137 460 3,707 43 Commercial & industrial 1,572 1,788 105 1,825 7 $ 18,489 $ 20,003 $ 654 $ 19,696 $ 357 Impaired Loans As of and for the year ended December 31, 2015 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 8,169 $ 9,271 $ $ 8,379 $ 282 Commercial real estate construction 2,154 2,337 2,264 130 Residential- 1 to 4 family 457 457 460 36 Commercial and industrial 524 524 731 27 Consumer Total 11,304 12,589 11,834 475 With an allowance recorded Commercial real estate $ 2,634 $ 2,638 $ 96 $ 2,664 $ 160 Residential- 1 to 4 family 3,761 3,782 479 3,786 149 Commercial and industrial 1,258 1,497 182 1,484 7 Consumer Total 7,653 7,917 757 7,934 316 Total Commercial real estate $ 10,803 $ 11,909 $ 96 $ 11,043 $ 442 Commercial real estate construction 2,154 2,337 2,264 130 Residential- 1 to 4 family 4,218 4,239 479 4,246 185 Commercial and industrial 1,782 2,021 182 2,215 34 Consumer Grand total $ 18,957 $ 20,506 $ 757 $ 19,768 $ 791 Impaired Loans As of and for the quarter ended March 31, 2015 Unpaid Average (Dollar amounts in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no related allowance recorded Commercial real estate $ 4,432 $ 5,315 $ $ 4,447 $ 63 Commercial real estate construction 2,368 2,551 2,371 33 Residential- 1 to 4 family 1,483 1,484 1,485 14 Commercial & industrial 564 801 573 10 Consumer Total 8,847 10,151 8,876 120 With an allowance recorded Commercial real estate $ 5,028 $ 5,031 $ 131 $ 5,048 $ 67 Commercial real estate construction Residential- 1 to 4 family 3,190 3,207 510 3,218 31 Commercial & industrial 1,662 2,014 279 1,698 4 Consumer 60 60 8 62 3 Total 9,940 10,312 928 10,026 105 Total Commercial real estate $ 9,460 $ 10,346 $ 131 $ 9,495 $ 130 Commercial real estate construction 2,368 2,551 2,371 33 Residential - 1 to 4 family 4,673 4,691 510 4,703 45 Commercial & industrial 2,226 2,815 279 2,271 14 Consumer 60 60 8 62 3 Grand total $ 18,787 $ 20,463 $ 928 $ 18,902 $ 225 |
Schedule of Loans On Nonaccrual Status | Loans on Nonaccrual Status as of (Dollar amounts in thousands) March 31, December 31, 2016 2015 Commercial real estate $ 5,210 $ 6,021 Real estate - 1 to 4 family 546 636 Commercial & industrial 1,126 1,258 Consumer Total $ 6,882 $ 7,915 |
Troubled Debt Restructurings | Total troubled debt restructured loans outstanding at (Dollars in thousands) March 31, 2016 December 31, 2015 Non- Non- Accrual accrual Total Accrual accrual Total status status modifications status status modifications Commercial real estate $ 5,490 $ 1,280 $ 6,770 $ 4,775 $ $ 4,775 Real Estate construction 1,232 1,232 1,283 1,283 Real estate 1 to 4 family 3,570 3,570 3,583 2,060 5,643 Commercial & industrial 516 1,006 1,522 524 1,043 1,567 Total $ 10,808 $ 2,286 $ 13,094 $ 10,165 $ 3,103 $ 13,268 |
Schedule of Allowance for Credit Losses | Allowance for Credit Losses For the Three Months Ended March 31, 2016 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real Estate Construction Family 4 Family & industrial Consumer Total Allowance for credit losses Beginning balance $ 6,059 $ 589 $ 243 $ 2,176 $ 853 $ 50 $ 9,970 Charge-offs (164 ) (5 ) (169 ) Recoveries 2 12 53 67 Provision for (recovery (recovery of) of) loan losses 52 (2 ) (32 ) (39 ) 99 (3 ) 75 Ending balance $ 6,113 $ 587 $ 211 $ 2,149 $ 841 $ 42 $ 9,943 Ending balance: individually evaluated for impairment $ 89 $ $ $ 460 $ 105 $ $ 654 Ending balance: collectively evaluated for $ 6,024 $ 587 $ 211 $ 1,689 $ 736 $ 42 $ 9,289 Allowance for Credit Losses As of and For the Year Ended December 31, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Charge-offs (45 ) (36 ) (81 ) Recoveries 576 15 60 5 656 (Recovery of) provision for loan losses (66 ) (260 ) 37 241 (280 ) 23 (305 ) Ending balance $ 6,059 $ 589 $ 243 $ 2,176 $ 853 $ 50 $ 9,970 Ending balance: individually evaluated for impairment $ 96 $ $ $ 479 $ 182 $ $ 757 Ending balance: collectively evaluated for impairment $ 5,963 $ 589 $ 243 $ 1,697 $ 671 $ 50 $ 9,213 Allowance for Credit Losses For the Three Months Ended March 31, 2015 (Dollar amounts in thousands) Real Real Estate Estate Commercial Real Estate Multi 1 to Commercial Real estate Construction family 4 family & industrial Consumer Total Allowance for credit losses Beginning balance $ 5,549 $ 849 $ 206 $ 1,965 $ 1,073 $ 58 $ 9,700 Charge-offs (45 ) (6 ) (51 ) Recoveries 6 14 20 Provision (250 ) 571 (54 ) (75 ) (126 ) 9 75 Ending balance $ 5,305 $ 1,420 $ 152 $ 1,845 $ 961 $ 61 $ 9,744 Ending balance: individually evaluated for impairment $ 131 $ $ $ 510 $ 279 $ 8 $ 928 Ending balance: collectively evaluated for impairment $ 5,174 $ 1,420 $ 152 $ 1,335 $ 682 $ 53 $ 8,816 |
Schedule Age Analysis Of Past Due Loans | Age Analysis of Past Due Loans As of March 31, 2016 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ $ $ 140 $ 140 $ 336,668 $ 336,808 Real estate construction 1,250 1,250 39,125 40,375 Real estate multi family 50,130 50,130 Real estate-1 to 4 family 1,057 690 1,747 143,814 145,561 Commercial & industrial 384 1,056 1,440 44,560 46,000 Consumer 1,675 1,675 Total $ 2,691 $ 690 $ 1,196 $ 4,577 $ 615,972 $ 620,549 Purchased Not credit impaired Commercial real estate $ $ 551 $ $ 551 $ 73,444 $ 73,995 Real estate construction 2,091 2,091 Real estate multi-family 9,769 9,769 Real estate-1 to 4 family 12 12 27,959 27,971 Commercial & industrial 70 70 9,538 9,608 Total $ $ 551 $ 82 $ 633 $ 122,801 $ 123,434 Purchased Credit impaired Commercial real estate $ $ $ $ $ 1,280 $ 1,280 Total $ $ $ $ $ 1,280 $ 1,280 Age Analysis of Past Due Loans As of December 31, 2015 (Dollar amounts in thousands) 30-59 60-89 Days Days Over Total Past Past 90 Past Total Originated Due Due Days Due Current Loans Commercial real estate $ 1,541 $ $ $ 1,541 $ 312,600 $ 314,141 Real estate construction 706 725 1431 37,478 38,909 Real estate multi family 47,607 47,607 Real estate 1 to 4 family 1,363 737 71 2,171 151,701 153,872 Commercial & industrial 1,258 1,258 38,636 39,894 Consumer 1,574 1,574 Total $ 3,610 $ 1,462 $ 1,329 $ 6,401 $ 589,596 $ 595,997 Purchased Not credit impaired Commercial real estate $ $ $ 3,810 $ $ 84,548 $ 84,548 Real estate construction 5,907 5,907 Real estate multi-family 15,990 15,990 Real estate 1 to 4 family 175 175 17,917 18,092 Commercial & industrial 70 70 12,069 12,139 Total $ 245 $ $ 3,810 $ 245 $ 136,431 $ 136,676 Purchased Credit impaired Commercial real estate $ $ $ $ $ 1,304 $ 1,304 Total $ $ $ $ $ 1,304 $ 1,304 |
Schedule Credit Quality Indicators | Credit Quality Indicators As of March 31, 2016 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 330,961 $ 1,844 $ 4,003 $ $ 336,808 Real estate construction 39,364 1,011 40,375 Real estate multi-family 50,130 50,130 Real estate-1 to 4 family 144,827 734 145,561 Commercial & industrial 45,360 629 11 46,000 Consumer loans 1,675 1,675 Totals $ 612,317 $ 1,844 $ 6,377 $ 11 $ 620,549 Purchased Not credit impaired Commercial real estate $ 62,646 $ 2,880 $ 8,457 $ 12 $ 73,995 Real estate construction 2,091 2,091 Real estate multi-family 9,769 9,769 Real estate-1 to 4 family 27,971 27,971 Commercial & industrial 9,516 92 9,608 Total $ 111,993 $ 2,880 $ 8,549 $ 12 $ 123,434 Purchased Credit impaired Commercial real estate $ 1,280 Total $ 1,280 Credit Quality Indicators As of December 31, 2015 (Dollar amounts in thousands) Special Sub- Total Originated Pass mention standard Doubtful loans Commercial real estate $ 308,164 $ 1,857 $ 4,120 $ $ 314,141 Real estate construction 37,850 1,059 38,909 Real estate multi-family 47,607 47,607 Real estate 1 to 4 family 153,285 587 153,872 Commercial & industrial 39,287 451 156 39,894 Consumer loans 1,574 1,574 Totals $ 587,767 $ 1,857 $ 6,217 $ 156 $ 595,997 Purchased Not credit impaired Commercial real estate $ 68,936 $ 3,455 $ 12,145 $ 12 $ 84,548 Real estate construction 5,907 5,907 Real estate multi-family 15,990 15,990 Real estate 1 to 4 family 18,092 18,092 Commercial & industrial 12,044 95 12,139 Total $ 120,969 $ 3,455 $ 12,240 $ 12 $ 136,676 Purchased Credit impaired Commercial real estate $ 1,304 Total $ 1,304 |
G. FAIR VALUE MEASUREMENT (Tabl
G. FAIR VALUE MEASUREMENT (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
FAIR VALUE MEASUREMENT TABLES {1} | |
Schedule of assets measured at fair value on a recurring basis | Fair Value Measurements (Dollar amounts in thousands) at March 31, 2016, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 3/31/2016 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 4,038 $ 4,038 $ $ Obligations of U.S. Government agencies 77,779 77,779 Mortgage-backed securities 65,296 65,296 Obligations of states and political subdivisions 140,912 140,912 Corporate debt 41,371 41,371 Total assets measured at fair value $ 329,396 $ 4,038 $ 325,358 $ Fair Value Measurements (Dollar amounts in thousands) at December 31, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2015 (Level 1) (Level 2) (Level 3) U. S. Treasury securities $ 7,000 $ 7,000 $ $ Obligations of U.S. Government agencies 84,609 84,609 Mortgage-backed securities 61,663 61,663 Obligations of states and political subdivisions 135,190 135,190 Corporate debt 40,745 40,745 Total assets measured at fair value $ 329,207 $ 7,000 $ 322,207 $ |
Schedule of assets measured at fair value on a non-recurring basis | Fair Value Measurements (Dollar amounts in thousands) at March 31, 2016, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 3/31/2016 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate loans $ $ $ $ Residential-1 to 4 family loans 215 215 Commercial and industrial loans 950 950 Consumer loans Total impaired loans measured at fair value $ 1,165 $ $ $ 1,165 Fair Value Measurements (Dollar amounts in thousands) at December 31, 2015, Using Quoted Prices in Active Markets Other Significant for Identical Observable Unobservable Fair Value Assets Inputs Inputs Description 12/31/2015 (Level 1) (Level 2) (Level 3) Impaired loans: Commercial real estate loans $ 136 $ $ $ 136 Residential-1 to 4 family loans 301 301 Commercial and industrial loans 1,065 1,065 Consumer loans Total impaired loans measured at fair value $ 1,502 $ $ $ 1,502 |
Schedule of estimated fair value of financial instruments | March 31, 2016 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 37,737 $ 37,737 $ 37,737 Interest-bearing time deposits with financial institutions 205 205 $ 205 Securities available for sale 329,396 329,396 4,038 325,358 Loans 746,610 737,339 $ 737,339 Other equity securities 6,756 6,756 6,756 Accrued interest receivable 4,603 4,603 4,603 Financial liabilities: Deposits 1,030,251 1,030,842 904,821 126,021 Note payable 4,800 4,800 4,800 Accrued interest payable 244 244 244 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit 1,741 1,741 The following table provides summary information on the estimated fair value of financial instruments at December 31, 2015: December 31, 2015 Carrying Fair Fair value measurements (Dollar amounts in thousands) amount value Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 12,314 $ 12,314 $ 12,314 Interest-bearing time deposits with financial institutions 205 205 $ 205 Securities available for sale 329,207 329,207 7,000 322,207 Loans 733,977 725,196 $ 725,196 Other equity securities 6,748 6,748 6,748 Accrued interest receivable 4,511 4,511 4,511 Financial liabilities: Deposits 983,199 983,771 857,759 125,430 Federal Home Loan Bank advances 17,000 17,000 17,000 Note payable 4,950 4,950 4,950 Accrued interest payable 236 236 236 Off-balance-sheet liabilities: Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit 1,673 1,673 |
B. STOCK OPTION PLANS (Detail N
B. STOCK OPTION PLANS (Detail Narratives) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation [Abstract] | ||
Compensation Expense | $ 88 | $ 61 |
Intrinsic Value Options Exercised | 405 | 314 |
Intrinsic Value Options Exercisable | 3,682 | $ 3,463 |
Unrecognized Compensation Expense Nonvested Options | $ 962 | |
Non-vested options weighted average period | 3 years 9 months 18 days |
C. EARNINGS PER SHARE CALCULA20
C. EARNINGS PER SHARE CALCULATION (Dollar amounts in thousands) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings per share data: | ||
Net earnings | $ 2,567 | $ 1,799 |
Average number of shares outstanding | 4,550 | 4,487 |
Effect of dilutive options | $ 137 | $ 136 |
Average number of shares outstanding used to calculate diluted earnings per share | 4,687 | 4,623 |
Anti-dilutive options not included | 52 | 96 |
D. SECURITIES AVAILABLE FOR S21
D. SECURITIES AVAILABLE FOR SALE, Amortized cost and fair values (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Available for sale securities, Amortized Cost | $ 322,970 | $ 326,595 |
Available for sale securities, Unrealized Gains | 6,595 | 4,021 |
Available for sale securities, Unrealized Losses | (169) | (1,409) |
Available for sale securities, Estimated Fair Value | 329,396 | 329,207 |
U.S. Treasury securities | ||
Available for sale securities, Amortized Cost | 3,978 | 7,004 |
Available for sale securities, Unrealized Gains | 60 | 14 |
Available for sale securities, Unrealized Losses | 0 | (18) |
Available for sale securities, Estimated Fair Value | 4,038 | 7,000 |
Obligations of U.S. government agencies | ||
Available for sale securities, Amortized Cost | 76,853 | 84,842 |
Available for sale securities, Unrealized Gains | 927 | 168 |
Available for sale securities, Unrealized Losses | (1) | (401) |
Available for sale securities, Estimated Fair Value | 77,779 | 84,609 |
Mortgage-backed securities | ||
Available for sale securities, Amortized Cost | 63,906 | 61,579 |
Available for sale securities, Unrealized Gains | 1,436 | 641 |
Available for sale securities, Unrealized Losses | (46) | (557) |
Available for sale securities, Estimated Fair Value | 65,296 | 61,663 |
Obligations of states and political subdivisions | ||
Available for sale securities, Amortized Cost | 137,022 | 132,125 |
Available for sale securities, Unrealized Gains | 3,930 | 3,148 |
Available for sale securities, Unrealized Losses | (40) | (83) |
Available for sale securities, Estimated Fair Value | 140,912 | 135,190 |
Corporate debt | ||
Available for sale securities, Amortized Cost | 41,211 | 41,045 |
Available for sale securities, Unrealized Gains | 242 | 50 |
Available for sale securities, Unrealized Losses | (82) | (350) |
Available for sale securities, Estimated Fair Value | $ 41,371 | $ 40,745 |
D. SECURITIES AVAILABLE FOR S22
D. SECURITIES AVAILABLE FOR SALE, Analysis of gross unrealized losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Less than 12 months, Total Fair Value | $ 22,453 | $ 122,000 |
Less than 12 months, Unrealized Loss | (122) | (922) |
12 months or more, Total Fair Value | 14,193 | 27,995 |
12 months or more, Unrealized Loss | (47) | (487) |
Total Fair Value | 36,646 | 149,995 |
Total Unrealized Loss | (169) | (1,409) |
U.S. Treasury securities | ||
Less than 12 months, Total Fair Value | 0 | 5,042 |
Less than 12 months, Unrealized Loss | 0 | (18) |
12 months or more, Total Fair Value | 0 | 0 |
12 months or more, Unrealized Loss | 0 | 0 |
Total Fair Value | 0 | 5,042 |
Total Unrealized Loss | 0 | (18) |
Obligations of U.S. government agencies | ||
Less than 12 months, Total Fair Value | 1,000 | 55,382 |
Less than 12 months, Unrealized Loss | 0 | (339) |
12 months or more, Total Fair Value | 1,011 | 4,976 |
12 months or more, Unrealized Loss | (1) | (62) |
Total Fair Value | 2,011 | 60,358 |
Total Unrealized Loss | (1) | (401) |
Mortgage-backed securities | ||
Less than 12 months, Total Fair Value | 1,506 | 19,458 |
Less than 12 months, Unrealized Loss | (11) | (192) |
12 months or more, Total Fair Value | 9,693 | 16,714 |
12 months or more, Unrealized Loss | (35) | (365) |
Total Fair Value | 11,199 | 36,172 |
Total Unrealized Loss | (46) | (557) |
Obligations of states and political subdivisions | ||
Less than 12 months, Total Fair Value | 8,412 | 14,988 |
Less than 12 months, Unrealized Loss | (40) | (73) |
12 months or more, Total Fair Value | 0 | 1,856 |
12 months or more, Unrealized Loss | 0 | (10) |
Total Fair Value | 8,412 | 16,844 |
Total Unrealized Loss | (40) | (83) |
Corporate debt | ||
Less than 12 months, Total Fair Value | 11,535 | 27,130 |
Less than 12 months, Unrealized Loss | (71) | (300) |
12 months or more, Total Fair Value | 3,489 | 4,449 |
12 months or more, Unrealized Loss | (11) | (50) |
Total Fair Value | 15,024 | 31,579 |
Total Unrealized Loss | $ (82) | $ (350) |
D. SECURITIES AVAILABLE FOR S23
D. SECURITIES AVAILABLE FOR SALE, Amortized Cost and Carrying Value (Details) $ in Thousands | Mar. 31, 2016USD ($) |
SECURITIES AVAILABLE FOR SALE - Summary of Investments Amortized Cost and Carrying Value | |
Due in one year or less, Amortized Cost | $ 11,961 |
Due after one through five years, Amortized Cost | 153,924 |
Due after five through ten years, Amortized Cost | 126,924 |
Due after ten years, Amortized Cost | 30,161 |
Equity securities, Amortized Cost | 322,970 |
Due in one year or less, Estimated Fair Value | 12,017 |
Due after one through five years, Estimated Fair Value | 156,274 |
Due after five through ten years, Estimated Fair Value | 130,411 |
Due after ten years, Estimated Fair Value | 30,694 |
Equity securities, Estimated Fair Value | $ 329,396 |
D. SECURITIES AVAILABLE FOR S24
D. SECURITIES AVAILABLE FOR SALE (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
D. Securities Available For Sale Details Narrative | ||
Gross realized gains | $ 184 | $ 69 |
Sell of securities | 12,282 | 12,272 |
Gross realized losses | 0 | $ 0 |
Amortized cost | 97,771 | |
Fair value of pledged as collateral for public deposits | $ 99,499 |
E. LOANS, Summary of Loan as fo
E. LOANS, Summary of Loan as follows (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Gross loans | $ 745,263 | $ 733,977 |
Net deferred loan fees | (1,329) | (1,260) |
Allowance for loan losses | (9,943) | (9,970) |
Net loans | 733,991 | 722,747 |
Commercial real estate | ||
Gross loans | 412,083 | 399,993 |
Real estate construction | ||
Gross loans | 42,466 | 44,816 |
Real Estate Multi family | ||
Gross loans | 59,899 | 63,597 |
Real Estate 1 to 4 family | ||
Gross loans | 173,532 | 171,964 |
Commercial and industrial | ||
Gross loans | 55,608 | 52,033 |
Consumer | ||
Gross loans | 1,675 | 1,574 |
FNB Bancorp Originated | ||
Gross loans | 620,549 | 595,997 |
Net deferred loan fees | (1,329) | (1,260) |
Allowance for loan losses | (9,943) | (9,970) |
Net loans | 609,277 | 584,767 |
FNB Bancorp Originated | Commercial real estate | ||
Gross loans | 336,808 | 314,141 |
FNB Bancorp Originated | Real estate construction | ||
Gross loans | 40,375 | 38,909 |
FNB Bancorp Originated | Real Estate Multi family | ||
Gross loans | 50,130 | 47,607 |
FNB Bancorp Originated | Real Estate 1 to 4 family | ||
Gross loans | 145,561 | 153,872 |
FNB Bancorp Originated | Commercial and industrial | ||
Gross loans | 46,000 | 39,894 |
FNB Bancorp Originated | Consumer | ||
Gross loans | 1,675 | 1,574 |
PNCI | ||
Gross loans | 123,434 | 136,676 |
Net deferred loan fees | 0 | 0 |
Allowance for loan losses | 0 | 0 |
Net loans | 123,434 | 136,676 |
PNCI | Commercial real estate | ||
Gross loans | 73,995 | 84,548 |
PNCI | Real estate construction | ||
Gross loans | 2,091 | 5,907 |
PNCI | Real Estate Multi family | ||
Gross loans | 9,769 | 15,990 |
PNCI | Real Estate 1 to 4 family | ||
Gross loans | 27,971 | 18,092 |
PNCI | Commercial and industrial | ||
Gross loans | 9,608 | 12,139 |
PNCI | Consumer | ||
Gross loans | 0 | 0 |
PCI | ||
Gross loans | 1,280 | 1,304 |
Net deferred loan fees | 0 | 0 |
Allowance for loan losses | 0 | 0 |
Net loans | 1,280 | 1,304 |
PCI | Commercial real estate | ||
Gross loans | 1,280 | 1,304 |
PCI | Real estate construction | ||
Gross loans | 0 | 0 |
PCI | Real Estate Multi family | ||
Gross loans | 0 | 0 |
PCI | Real Estate 1 to 4 family | ||
Gross loans | 0 | 0 |
PCI | Commercial and industrial | ||
Gross loans | 0 | 0 |
PCI | Consumer | ||
Gross loans | $ 0 | $ 0 |
E. LOANS, Recorded Investment i
E. LOANS, Recorded Investment in Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 |
Commercial and Real estate | |||
Ending balance | $ 412,083 | $ 399,993 | $ 322,414 |
Ending balance: individually evaluated for impairment | 10,700 | 10,803 | 9,460 |
Ending balance: collectively evaluated for impairment | 401,383 | 389,190 | 312,954 |
Real Estate Construction | |||
Ending balance | 42,466 | 44,816 | 34,237 |
Ending balance: individually evaluated for impairment | 2,102 | 2,154 | 2,368 |
Ending balance: collectively evaluated for impairment | 40,364 | 42,662 | 31,869 |
Real Estate Multi family | |||
Ending balance | 59,899 | 63,597 | 53,703 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 59,899 | 63,597 | 53,703 |
Real Estate 1 to 4 family | |||
Ending balance | 173,532 | 171,964 | 128,105 |
Ending balance: individually evaluated for impairment | 4,115 | 4,218 | 4,673 |
Ending balance: collectively evaluated for impairment | 169,417 | 167,746 | 123,432 |
Commercial and industrial | |||
Ending balance | 55,608 | 52,033 | 45,589 |
Ending balance: individually evaluated for impairment | 1,572 | 1,782 | 2,226 |
Ending balance: collectively evaluated for impairment | 54,036 | 50,251 | 43,363 |
Consumer | |||
Ending balance | 1,675 | 1,574 | 1,697 |
Ending balance: individually evaluated for impairment | 0 | 0 | 60 |
Ending balance: collectively evaluated for impairment | 1,675 | 1,574 | 1,637 |
Total | |||
Ending balance | 745,263 | 733,977 | 585,745 |
Ending balance: individually evaluated for impairment | 18,489 | 18,957 | 18,787 |
Ending balance: collectively evaluated for impairment | $ 726,774 | $ 715,020 | $ 566,958 |
E. LOANS, Impaired Loans Allowa
E. LOANS, Impaired Loans Allowance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
With no related allowance, Recorded Investment | $ 11,161 | $ 8,847 | $ 11,304 |
With no related allowance, Unpaid Principal Balance | 12,433 | 10,151 | 12,589 |
With no related allowance recorded, Related Allowance | 0 | 0 | 0 |
With no related allowance, Average Recorded Investment | 12,502 | 8,876 | 11,834 |
With no related allowance, Income Recognized | 284 | 120 | 475 |
With an allowance recorded, Recorded Investment | 7,328 | 9,940 | 7,653 |
With an allowance recorded, Unpaid Principal Balance | 7,570 | 10,312 | 7,917 |
With an allowance recorded, Related Allowance | 654 | 928 | 757 |
With an allowance recorded, Average Impaired Balance | 7,194 | 10,026 | 7,934 |
With an allowance recorded, Income Recognized | 73 | 105 | 316 |
Recorded Investment | 18,489 | 18,787 | 18,957 |
Unpaid Principal Balance | 20,003 | 20,463 | 20,506 |
Related Allowance | 654 | 928 | 757 |
Average Recorded Investment | 19,696 | 18,902 | 19,768 |
Income Recognized | 357 | 225 | 791 |
Commercial real estate | |||
With no related allowance, Recorded Investment | 8,075 | 4,432 | 8,169 |
With no related allowance, Unpaid Principal Balance | 9,164 | 5,315 | 9,271 |
With no related allowance recorded, Related Allowance | 0 | 0 | 0 |
With no related allowance, Average Recorded Investment | 9,212 | 4,447 | 8,379 |
With no related allowance, Income Recognized | 232 | 63 | 282 |
With an allowance recorded, Recorded Investment | 2,625 | 5,028 | 2,634 |
With an allowance recorded, Unpaid Principal Balance | 2,629 | 5,031 | 2,638 |
With an allowance recorded, Related Allowance | 89 | 131 | 96 |
With an allowance recorded, Average Impaired Balance | 2,641 | 5,048 | 2,664 |
With an allowance recorded, Income Recognized | 38 | 67 | 160 |
Recorded Investment | 10,700 | 9,460 | 10,803 |
Unpaid Principal Balance | 11,793 | 10,346 | 11,909 |
Related Allowance | 89 | 131 | 96 |
Average Recorded Investment | 11,853 | 9,495 | 11,043 |
Income Recognized | 270 | 130 | 442 |
Commercial real estate construction | |||
With no related allowance, Recorded Investment | 2,102 | 2,368 | 2,154 |
With no related allowance, Unpaid Principal Balance | 2,285 | 2,551 | 2,337 |
With no related allowance recorded, Related Allowance | 0 | 0 | 0 |
With no related allowance, Average Recorded Investment | 2,311 | 2,371 | 2,264 |
With no related allowance, Income Recognized | 37 | 33 | 130 |
With an allowance recorded, Recorded Investment | 0 | 0 | 0 |
With an allowance recorded, Unpaid Principal Balance | 0 | 0 | 0 |
With an allowance recorded, Related Allowance | 0 | 0 | 0 |
With an allowance recorded, Average Impaired Balance | 0 | 0 | 0 |
With an allowance recorded, Income Recognized | 0 | 0 | 0 |
Recorded Investment | 2,102 | 2,368 | 2,154 |
Unpaid Principal Balance | 2,285 | 2,551 | 2,337 |
Related Allowance | 0 | 0 | 0 |
Average Recorded Investment | 2,311 | 2,371 | 2,264 |
Income Recognized | 37 | 33 | 130 |
Real Estate 1 to 4 family | |||
With no related allowance, Recorded Investment | 468 | 1,483 | 457 |
With no related allowance, Unpaid Principal Balance | 468 | 1,484 | 457 |
With no related allowance recorded, Related Allowance | 0 | 0 | 0 |
With no related allowance, Average Recorded Investment | 457 | 1,485 | 460 |
With no related allowance, Income Recognized | 8 | 14 | 36 |
With an allowance recorded, Recorded Investment | 3,647 | 3,190 | 3,761 |
With an allowance recorded, Unpaid Principal Balance | 3,669 | 3,207 | 3,782 |
With an allowance recorded, Related Allowance | 460 | 510 | 479 |
With an allowance recorded, Average Impaired Balance | 3,250 | 3,218 | 3,786 |
With an allowance recorded, Income Recognized | 35 | 31 | 149 |
Recorded Investment | 4,115 | 4,673 | 4,218 |
Unpaid Principal Balance | 4,137 | 4,691 | 4,239 |
Related Allowance | 460 | 510 | 479 |
Average Recorded Investment | 3,707 | 4,703 | 4,246 |
Income Recognized | 43 | 45 | 185 |
Commercial and industrial | |||
With no related allowance, Recorded Investment | 516 | 564 | 524 |
With no related allowance, Unpaid Principal Balance | 516 | 801 | 524 |
With no related allowance recorded, Related Allowance | 0 | 0 | 0 |
With no related allowance, Average Recorded Investment | 522 | 573 | 731 |
With no related allowance, Income Recognized | 7 | 10 | 27 |
With an allowance recorded, Recorded Investment | 1,056 | 1,662 | 1,258 |
With an allowance recorded, Unpaid Principal Balance | 1,272 | 2,014 | 1,497 |
With an allowance recorded, Related Allowance | 105 | 279 | 182 |
With an allowance recorded, Average Impaired Balance | 1,303 | 1,698 | 1,484 |
With an allowance recorded, Income Recognized | 0 | 4 | 7 |
Recorded Investment | 1,572 | 2,226 | 1,782 |
Unpaid Principal Balance | 1,788 | 2,815 | 2,021 |
Related Allowance | 105 | 279 | 182 |
Average Recorded Investment | 1,825 | 2,271 | 2,215 |
Income Recognized | 7 | 14 | 34 |
Consumer | |||
With no related allowance, Recorded Investment | 0 | 0 | 0 |
With no related allowance, Unpaid Principal Balance | 0 | 0 | 0 |
With no related allowance recorded, Related Allowance | 0 | 0 | 0 |
With no related allowance, Average Recorded Investment | 0 | 0 | 0 |
With no related allowance, Income Recognized | 0 | 0 | 0 |
With an allowance recorded, Recorded Investment | 0 | 60 | 0 |
With an allowance recorded, Unpaid Principal Balance | 0 | 60 | 0 |
With an allowance recorded, Related Allowance | 0 | 8 | 0 |
With an allowance recorded, Average Impaired Balance | 0 | 62 | 0 |
With an allowance recorded, Income Recognized | 0 | 3 | 0 |
Recorded Investment | 0 | 60 | 0 |
Unpaid Principal Balance | 0 | 60 | 0 |
Related Allowance | 0 | 8 | 0 |
Average Recorded Investment | 0 | 62 | 0 |
Income Recognized | $ 0 | $ 3 | $ 0 |
E. LOANS, Nonaccrual (Details)
E. LOANS, Nonaccrual (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Loans, Nonaccrual Status | $ 6,882 | $ 7,915 |
Commercial real estate | ||
Loans, Nonaccrual Status | 5,210 | 6,021 |
Real Estate 1 to 4 family | ||
Loans, Nonaccrual Status | 546 | 636 |
Commercial and industrial | ||
Loans, Nonaccrual Status | 1,126 | 1,258 |
Consumer | ||
Loans, Nonaccrual Status | $ 0 | $ 0 |
E. LOANS, Troubled Debt Restruc
E. LOANS, Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Troubled debt restructured loans outstanding, accrual status | $ 10,808 | $ 10,165 |
Troubled debt restructured loans outstanding, nonaccrual status | 2,286 | 3,103 |
Total modifications | 13,094 | 13,268 |
Commercial real estate | ||
Troubled debt restructured loans outstanding, accrual status | 5,490 | 4,775 |
Troubled debt restructured loans outstanding, nonaccrual status | 1,280 | 0 |
Total modifications | 6,770 | 4,775 |
Real Estate Construction | ||
Troubled debt restructured loans outstanding, accrual status | 1,232 | 1,283 |
Troubled debt restructured loans outstanding, nonaccrual status | 0 | 0 |
Total modifications | 1,232 | 1,283 |
Real Estate 1 to 4 family | ||
Troubled debt restructured loans outstanding, accrual status | 3,570 | 3,583 |
Troubled debt restructured loans outstanding, nonaccrual status | 0 | 2,060 |
Total modifications | 3,570 | 5,643 |
Commercial and industrial | ||
Troubled debt restructured loans outstanding, accrual status | 516 | 524 |
Troubled debt restructured loans outstanding, nonaccrual status | 1,006 | 1,043 |
Total modifications | $ 1,522 | $ 1,567 |
E. LOANS, Allowance for Credit
E. LOANS, Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Commercial and Real estate | |||
Allowance for credit losses | |||
Beginning balance | $ 6,059 | $ 5,549 | $ 5,549 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 2 | 6 | 576 |
Provision for (recovery of) loan losses | 52 | (250) | (66) |
Ending balance | 6,113 | 5,305 | 6,059 |
Ending balance: individually evaluated for impairment | 89 | 131 | 96 |
Ending balance: collectively evaluated for impairment | 6,024 | 5,174 | 5,963 |
Real Estate Construction | |||
Allowance for credit losses | |||
Beginning balance | 589 | 849 | 849 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision for (recovery of) loan losses | (2) | 571 | (260) |
Ending balance | 587 | 1,420 | 589 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 587 | 1,420 | 589 |
Real Estate Multi family | |||
Allowance for credit losses | |||
Beginning balance | 243 | 206 | 206 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision for (recovery of) loan losses | (32) | (54) | 37 |
Ending balance | 211 | 152 | 243 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 211 | 152 | 243 |
Real Estate 1 to 4 family | |||
Allowance for credit losses | |||
Beginning balance | 2,176 | 1,965 | 1,965 |
Charge-offs | 0 | (45) | (45) |
Recoveries | 12 | 0 | 15 |
Provision for (recovery of) loan losses | (39) | (75) | 241 |
Ending balance | 2,149 | 1,845 | 2,176 |
Ending balance: individually evaluated for impairment | 460 | 510 | 479 |
Ending balance: collectively evaluated for impairment | 1,689 | 1,335 | 1,697 |
Commercial and industrial | |||
Allowance for credit losses | |||
Beginning balance | 853 | 1,073 | 1,073 |
Charge-offs | (164) | 0 | 0 |
Recoveries | 53 | 14 | 60 |
Provision for (recovery of) loan losses | 99 | (126) | (280) |
Ending balance | 841 | 961 | 853 |
Ending balance: individually evaluated for impairment | 105 | 279 | 182 |
Ending balance: collectively evaluated for impairment | 736 | 682 | 671 |
Consumer | |||
Allowance for credit losses | |||
Beginning balance | 50 | 58 | 58 |
Charge-offs | (5) | (6) | (36) |
Recoveries | 0 | 0 | 5 |
Provision for (recovery of) loan losses | (3) | 9 | 23 |
Ending balance | 42 | 61 | 50 |
Ending balance: individually evaluated for impairment | 0 | 8 | 0 |
Ending balance: collectively evaluated for impairment | 42 | 53 | 50 |
Total | |||
Allowance for credit losses | |||
Beginning balance | 9,970 | 9,700 | 9,700 |
Charge-offs | (169) | (51) | (81) |
Recoveries | 67 | 20 | 656 |
Provision for (recovery of) loan losses | 75 | 75 | (305) |
Ending balance | 9,943 | 9,744 | 9,970 |
Ending balance: individually evaluated for impairment | 654 | 928 | 757 |
Ending balance: collectively evaluated for impairment | $ 9,289 | $ 8,816 | $ 9,213 |
E. LOANS, Past due loans (Detai
E. LOANS, Past due loans (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Originated | ||
Past Due, Total | $ 4,577 | $ 6,401 |
Current | 615,972 | 589,596 |
Total Loans | 620,549 | 595,997 |
Originated | Past Due, 30 - 59 days | ||
Past Due, Total | 2,691 | 3,610 |
Originated | Past Due, 60 - 89 days | ||
Past Due, Total | 690 | 1,462 |
Originated | Past Due, More than 90 days | ||
Past Due, Total | 1,196 | 1,329 |
Originated | Commercial real estate | ||
Past Due, Total | 140 | 1,541 |
Current | 336,668 | 312,600 |
Total Loans | 336,808 | 314,141 |
Originated | Commercial real estate | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 1,541 |
Originated | Commercial real estate | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 0 |
Originated | Commercial real estate | Past Due, More than 90 days | ||
Past Due, Total | 140 | 0 |
Originated | Real Estate Construction | ||
Past Due, Total | 1,250 | 1,431 |
Current | 39,125 | 37,478 |
Total Loans | 40,375 | 38,909 |
Originated | Real Estate Construction | Past Due, 30 - 59 days | ||
Past Due, Total | 1,250 | 706 |
Originated | Real Estate Construction | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 725 |
Originated | Real Estate Construction | Past Due, More than 90 days | ||
Past Due, Total | 0 | 0 |
Originated | Real Estate Multi family | ||
Past Due, Total | 0 | 0 |
Current | 50,130 | 47,607 |
Total Loans | 50,130 | 47,607 |
Originated | Real Estate Multi family | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 0 |
Originated | Real Estate Multi family | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 0 |
Originated | Real Estate Multi family | Past Due, More than 90 days | ||
Past Due, Total | 0 | 0 |
Originated | Real Estate 1 to 4 family | ||
Past Due, Total | 1,747 | 2,171 |
Current | 143,814 | 151,701 |
Total Loans | 145,561 | 153,872 |
Originated | Real Estate 1 to 4 family | Past Due, 30 - 59 days | ||
Past Due, Total | 1,057 | 1,363 |
Originated | Real Estate 1 to 4 family | Past Due, 60 - 89 days | ||
Past Due, Total | 690 | 737 |
Originated | Real Estate 1 to 4 family | Past Due, More than 90 days | ||
Past Due, Total | 0 | 71 |
Originated | Commercial and industrial | ||
Past Due, Total | 1,440 | 1,258 |
Current | 44,560 | 38,636 |
Total Loans | 46,000 | 39,894 |
Originated | Commercial and industrial | Past Due, 30 - 59 days | ||
Past Due, Total | 384 | 0 |
Originated | Commercial and industrial | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 0 |
Originated | Commercial and industrial | Past Due, More than 90 days | ||
Past Due, Total | 1,056 | 1,258 |
Originated | Consumer | ||
Past Due, Total | 0 | 0 |
Current | 1,675 | 1,574 |
Total Loans | 1,675 | 1,574 |
Originated | Consumer | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 0 |
Originated | Consumer | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 0 |
Originated | Consumer | Past Due, More than 90 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | ||
Past Due, Total | 633 | 245 |
Current | 122,801 | 136,431 |
Total Loans | 123,434 | 136,676 |
Purchased Not credit impaired | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 245 |
Purchased Not credit impaired | Past Due, 60 - 89 days | ||
Past Due, Total | 551 | 0 |
Purchased Not credit impaired | Past Due, More than 90 days | ||
Past Due, Total | 82 | 3,810 |
Purchased Not credit impaired | Commercial real estate | ||
Past Due, Total | 551 | 0 |
Current | 73,444 | 84,548 |
Total Loans | 73,995 | 84,548 |
Purchased Not credit impaired | Commercial real estate | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Commercial real estate | Past Due, 60 - 89 days | ||
Past Due, Total | 551 | 0 |
Purchased Not credit impaired | Commercial real estate | Past Due, More than 90 days | ||
Past Due, Total | 0 | 3,810 |
Purchased Not credit impaired | Real Estate Construction | ||
Past Due, Total | 0 | 0 |
Current | 2,091 | 5,907 |
Total Loans | 2,091 | 5,907 |
Purchased Not credit impaired | Real Estate Construction | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate Construction | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate Construction | Past Due, More than 90 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate Multi family | ||
Past Due, Total | 0 | 0 |
Current | 9,769 | 15,990 |
Total Loans | 9,769 | 15,990 |
Purchased Not credit impaired | Real Estate Multi family | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate Multi family | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate Multi family | Past Due, More than 90 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate 1 to 4 family | ||
Past Due, Total | 12 | 175 |
Current | 27,959 | 17,917 |
Total Loans | 27,971 | 18,092 |
Purchased Not credit impaired | Real Estate 1 to 4 family | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 175 |
Purchased Not credit impaired | Real Estate 1 to 4 family | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Real Estate 1 to 4 family | Past Due, More than 90 days | ||
Past Due, Total | 12 | 0 |
Purchased Not credit impaired | Commercial and industrial | ||
Past Due, Total | 70 | 70 |
Current | 9,538 | 12,069 |
Total Loans | 9,608 | 12,139 |
Purchased Not credit impaired | Commercial and industrial | Past Due, 30 - 59 days | ||
Past Due, Total | 0 | 70 |
Purchased Not credit impaired | Commercial and industrial | Past Due, 60 - 89 days | ||
Past Due, Total | 0 | 0 |
Purchased Not credit impaired | Commercial and industrial | Past Due, More than 90 days | ||
Past Due, Total | 70 | 0 |
Purchased Credit impaired | ||
Past Due, Total | 1,280 | 1,304 |
Total Loans | 1,280 | 1,304 |
Purchased Credit impaired | Commercial real estate | ||
Past Due, Total | 1,280 | 1,304 |
Total Loans | $ 1,280 | $ 1,304 |
E. LOANS, Credit Quality Indica
E. LOANS, Credit Quality Indicators Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Pass | ||
Commercial real estate | $ 330,961 | $ 308,164 |
Real estate construction | 39,364 | 37,850 |
Real estate multi-family | 50,130 | 47,607 |
Real estate 1 to 4 family | 144,827 | 153,285 |
Commercial & industrial | 45,360 | 39,287 |
Consumer loans | 1,675 | 1,574 |
Totals | 612,317 | 587,767 |
Commercial real estate | 62,646 | 68,936 |
Real estate construction | 2,091 | 5,907 |
Real estate multi-family | 9,769 | 15,990 |
Real estate 1 to 4 family | 27,971 | 18,092 |
Commercial & industrial | 9,516 | 12,044 |
Total | 111,993 | 120,969 |
Special mention | ||
Commercial real estate | 1,844 | 1,857 |
Real estate construction | 0 | 0 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 0 | 0 |
Commercial & industrial | 0 | 0 |
Consumer loans | 0 | 0 |
Totals | 1,844 | 1,857 |
Commercial real estate | 2,880 | 3,455 |
Real estate construction | 0 | 0 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 0 | 0 |
Commercial & industrial | 0 | 0 |
Total | 2,880 | 3,455 |
Sub Standard | ||
Commercial real estate | 4,003 | 4,120 |
Real estate construction | 1,011 | 1,059 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 734 | 587 |
Commercial & industrial | 629 | 451 |
Consumer loans | 0 | 0 |
Totals | 6,377 | 6,217 |
Commercial real estate | 8,457 | 12,145 |
Real estate construction | 0 | 0 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 0 | 0 |
Commercial & industrial | 92 | 95 |
Total | 8,549 | 12,240 |
Doubtful | ||
Commercial real estate | 0 | 0 |
Real estate construction | 0 | 0 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 0 | 0 |
Commercial & industrial | 11 | 156 |
Consumer loans | 0 | 0 |
Totals | 11 | 156 |
Commercial real estate | 12 | 12 |
Real estate construction | 0 | 0 |
Real estate multi-family | 0 | 0 |
Real estate 1 to 4 family | 0 | 0 |
Commercial & industrial | 0 | 0 |
Total | 12 | 12 |
Total loans | ||
Commercial real estate | 336,808 | 314,141 |
Real estate construction | 40,375 | 38,909 |
Real estate multi-family | 50,130 | 47,607 |
Real estate 1 to 4 family | 145,561 | 153,872 |
Commercial & industrial | 46,000 | 39,894 |
Consumer loans | 1,675 | 1,574 |
Totals | 620,549 | 595,997 |
Commercial real estate | 73,995 | 84,548 |
Real estate construction | 2,091 | 5,907 |
Real estate multi-family | 9,769 | 15,990 |
Real estate 1 to 4 family | 27,971 | 18,092 |
Commercial & industrial | 9,608 | 12,139 |
Total | 123,434 | 136,676 |
Commercial real estate | 1,280 | 1,304 |
Total | $ 1,280 | $ 1,304 |
E. LOANS, (Details Narrative)
E. LOANS, (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
E. Loans Details Narrative | |||
Interest income on impaired loans recognized | $ 357 | $ 225 | $ 791 |
Interest on impaired loans not collected | 132 | 106 | |
Cumulative amount of unpaid interest on impaired loans | 3,537 | $ 3,050 | |
Nonaccrual loans | $ 6,882 | $ 7,915 |
G. FAIR VALUE MEASUREMENT, Asse
G. FAIR VALUE MEASUREMENT, Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
U. S. Treasury securities | $ 4,038 | $ 7,000 |
Obligations of U.S. Government agencies | 77,779 | 84,609 |
Mortgage-backed securities | 65,296 | 61,663 |
Obligations of states and political subdivisions | 140,912 | 135,190 |
Corporate debt | 41,371 | 40,745 |
Total assets measured at fair value | 329,396 | 329,207 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
U. S. Treasury securities | 4,038 | 7,000 |
Obligations of U.S. Government agencies | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Corporate debt | 0 | 0 |
Total assets measured at fair value | 4,038 | 7,000 |
Other Observable Inputs (Level 2) | ||
U. S. Treasury securities | 0 | 0 |
Obligations of U.S. Government agencies | 77,779 | 84,609 |
Mortgage-backed securities | 65,296 | 61,663 |
Obligations of states and political subdivisions | 140,912 | 135,190 |
Corporate debt | 41,371 | 40,745 |
Total assets measured at fair value | 325,358 | 322,207 |
Significant Unobservable Inputs(Level 3) | ||
U. S. Treasury securities | 0 | 0 |
Obligations of U.S. Government agencies | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Corporate debt | 0 | 0 |
Total assets measured at fair value | $ 0 | $ 0 |
G. FAIR VALUE MEASUREMENT, Nonr
G. FAIR VALUE MEASUREMENT, Nonrecurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value | ||
Commercial real estate | $ 0 | $ 136 |
Residential- 1 to 4 family | 215 | 301 |
Commercial and Industrial | 950 | 1,065 |
Consumer | 0 | 0 |
Total impaired assets measured at fair value | 1,165 | 1,502 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Commercial real estate | 0 | 0 |
Residential- 1 to 4 family | 0 | 0 |
Commercial and Industrial | 0 | 0 |
Consumer | 0 | 0 |
Total impaired assets measured at fair value | 0 | 0 |
Other Observable Inputs (Level 2) | ||
Commercial real estate | 0 | 0 |
Residential- 1 to 4 family | 0 | 0 |
Commercial and Industrial | 0 | 0 |
Consumer | 0 | 0 |
Total impaired assets measured at fair value | 0 | 0 |
Significant Unobservable Inputs(Level 3) | ||
Commercial real estate | 0 | 136 |
Residential- 1 to 4 family | 215 | 301 |
Commercial and Industrial | 950 | 1,065 |
Consumer | 0 | 0 |
Total impaired assets measured at fair value | $ 1,165 | $ 1,502 |
G. FAIR VALUE MEASUREMENT, Fina
G. FAIR VALUE MEASUREMENT, Financial instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||||
Cash and cash equivalents | $ 37,737 | $ 12,314 | $ 30,640 | $ 14,978 |
Interest-bearing time deposits with financial Institutions | 205 | 205 | ||
Other Equity Securities | 329,396 | |||
Accrued interest receivable | 4,603 | 4,511 | ||
Financial liabilities: | ||||
Deposits | 1,030,251 | 983,189 | ||
Notes payable | 4,800 | 4,950 | ||
Carrying Amount | ||||
Financial assets: | ||||
Cash and cash equivalents | 37,737 | 12,314 | ||
Interest-bearing time deposits with financial Institutions | 205 | 205 | ||
Securities available for sale | 329,396 | 329,207 | ||
Loans | 746,610 | 733,977 | ||
Other Equity Securities | 6,756 | 6,748 | ||
Accrued interest receivable | 4,603 | 4,511 | ||
Financial liabilities: | ||||
Deposits | 1,030,251 | 983,199 | ||
Federal Home Loan Bank advances | 17,000 | |||
Notes payable | 4,800 | 4,950 | ||
Accrued interest payable | 244 | 236 | ||
Off-balance-sheet liabilities: | ||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit | 0 | 0 | ||
Fair Value | ||||
Financial assets: | ||||
Cash and cash equivalents | 37,737 | 12,314 | ||
Interest-bearing time deposits with financial Institutions | 205 | 205 | ||
Securities available for sale | 329,396 | 329,207 | ||
Loans | 737,339 | 725,196 | ||
Other Equity Securities | 6,756 | 6,748 | ||
Accrued interest receivable | 4,603 | 4,511 | ||
Financial liabilities: | ||||
Deposits | 1,030,842 | 983,771 | ||
Federal Home Loan Bank advances | 17,000 | |||
Notes payable | 4,800 | 4,950 | ||
Accrued interest payable | 244 | 236 | ||
Off-balance-sheet liabilities: | ||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit | 1,741 | 1,673 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Financial assets: | ||||
Cash and cash equivalents | 37,737 | 12,314 | ||
Securities available for sale | 4,038 | 7,000 | ||
Accrued interest receivable | 4,603 | 4,511 | ||
Financial liabilities: | ||||
Deposits | 904,821 | 857,759 | ||
Accrued interest payable | 244 | 236 | ||
Other Observable Inputs (Level 2) | ||||
Financial assets: | ||||
Interest-bearing time deposits with financial Institutions | 205 | 205 | ||
Securities available for sale | 325,358 | 322,207 | ||
Financial liabilities: | ||||
Deposits | 126,021 | 125,430 | ||
Federal Home Loan Bank advances | 17,000 | |||
Notes payable | 4,800 | 4,950 | ||
Significant Unobservable Inputs(Level 3) | ||||
Financial assets: | ||||
Loans | 737,339 | 725,196 | ||
Other Equity Securities | 6,756 | 6,748 | ||
Off-balance-sheet liabilities: | ||||
Undisbursed loan commitments, lines of credit, standby letters of credit and Mastercard lines of credit | $ 1,741 | $ 1,673 |
G. FAIR VALUE MEASUREMENT (Deta
G. FAIR VALUE MEASUREMENT (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
FAIR VALUE MEASUREMENT TABLES | ||
Nonaccrual loans | $ 6,882 | $ 7,915 |