Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 11, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | NEW PEOPLES BANKSHARES INC | |
Entity Central Index Key | 1,163,389 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 23,354,257 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
INTEREST AND DIVIDEND INCOME | ||||
Loans including fees | $ 5,732 | $ 5,889 | $ 16,910 | $ 17,595 |
Federal funds sold | 2 | |||
Interest-earning deposits with banks | 23 | 18 | 67 | 73 |
Investments | 334 | 457 | 1,161 | 1,306 |
Dividends on equity securities (restricted) | 35 | 32 | 99 | 98 |
Total Interest and Dividend Income | 6,124 | 6,396 | 18,237 | 19,074 |
Deposits | ||||
Demand | 13 | 10 | 37 | 28 |
Savings | 44 | 44 | 122 | 129 |
Time deposits below $100,000 | 273 | 315 | 808 | 1,062 |
Time deposits above $100,000 | 168 | 213 | 480 | 735 |
FHLB advances | 45 | 35 | 109 | 113 |
Federal funds purchased | 2 | |||
Trust Preferred Securities | 128 | 111 | 373 | 328 |
Total Interest Expense | 671 | 728 | 1,931 | 2,395 |
NET INTEREST INCOME | 5,453 | 5,668 | 16,306 | 16,679 |
PROVISION FOR LOAN LOSSES | (1,200) | (500) | (1,200) | |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 5,453 | 6,868 | 16,806 | 17,879 |
NONINTEREST INCOME | ||||
Service charges | 854 | 579 | 1,926 | 1,667 |
Fees, commission and other income | 1,031 | 796 | 2,694 | 2,333 |
Insurance and investment fees | 103 | 155 | 404 | 411 |
Net realized gains on sale of investment securities | 240 | 35 | ||
Life insurance investment income | 55 | 247 | 118 | 316 |
Total Noninterest Income | 2,043 | 1,777 | 5,382 | 4,762 |
NONINTEREST EXPENSES | ||||
Salaries and employee benefits | 3,405 | 2,992 | 9,954 | 8,816 |
Occupancy and equipment expenses | 1,121 | 905 | 3,042 | 2,767 |
Advertising and public relations | 99 | 111 | 332 | 240 |
Data processing and telecommunications | 569 | 550 | 1,726 | 1,552 |
FDIC insurance premiums | 137 | 213 | 407 | 652 |
Other real estate owned and repossessed assets, net | 347 | 332 | 599 | 1,398 |
Other operating expenses | 1,477 | 1,235 | 4,208 | 3,822 |
Total Noninterest Expenses | 7,155 | 6,338 | 20,268 | 19,247 |
INCOME BEFORE INCOME TAXES | 341 | 2,307 | 1,920 | 3,394 |
INCOME TAX EXPENSE (BENEFIT) | (5) | 14 | (6) | 17 |
NET INCOME | $ 346 | $ 2,293 | $ 1,926 | $ 3,377 |
Income Per Share | ||||
Basic | $ 0.01 | $ 0.1 | $ 0.08 | $ 0.15 |
Fully Diluted | $ 0.01 | $ 0.1 | $ 0.08 | $ 0.15 |
Average Weighted Shares of Common Stock | ||||
Basic | 23,354,111 | 22,878,654 | 23,354,092 | 22,878,654 |
Fully Diluted | 23,354,111 | 22,878,654 | 23,354,092 | 22,878,654 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Consolidated Statements Of Comprehensive Income Loss | ||||
NET INCOME | $ 346 | $ 2,293 | $ 1,926 | $ 3,377 |
Investment securities activity | ||||
Unrealized gains (losses) arising during the year | (70) | 576 | 1,409 | 309 |
Tax related to unrealized gains (losses) | 24 | (196) | (479) | (105) |
Reclassification of realized gains during the period | (240) | (35) | ||
Tax related to realized gains | 82 | 12 | ||
TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | (46) | 380 | 772 | 181 |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 300 | $ 2,673 | $ 2,698 | $ 3,558 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 16,625 | $ 15,087 |
Interest-bearing deposits with banks | 15,776 | 11,251 |
Federal funds sold | 36 | |
Total Cash and Cash Equivalents | 32,437 | 26,338 |
Investment securities available-for-sale | 74,561 | 101,642 |
Loans receivable | 464,721 | 441,169 |
Allowance for loan losses | (6,358) | (7,493) |
Net Loans | 458,363 | 433,676 |
Bank premises and equipment, net | 30,259 | 28,148 |
Equity securities (restricted) | 2,613 | 2,441 |
Other real estate owned | 13,194 | 12,398 |
Accrued interest receivable | 1,924 | 1,816 |
Life insurance investments | 12,223 | 12,105 |
Deferred taxes, net | 4,819 | 5,121 |
Other assets | 3,474 | 2,213 |
Total Assets | 633,867 | 625,898 |
Demand deposits: | ||
Noninterest bearing | 152,930 | 149,714 |
Interest-bearing | 40,623 | 30,251 |
Savings deposits | 115,007 | 121,076 |
Time deposits | 247,956 | 256,978 |
Total Deposits | 556,516 | 558,019 |
Federal Home Loan Bank advances | 9,058 | 2,958 |
Accrued interest payable | 294 | 288 |
Accrued expenses and other liabilities | 2,718 | 2,050 |
Trust preferred securities | 16,496 | 16,496 |
Total Liabilities | 585,082 | 579,811 |
STOCKHOLDERS' EQUITY | ||
Common stock - $2.00 par value; 50,000,000 shares authorized; 23,354,257 and 23,354,082 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively | 46,708 | 46,708 |
Common stock warrants | 764 | 764 |
Additional paid-in capital | 13,965 | 13,965 |
Retained deficit | (13,097) | (15,023) |
Accumulated other comprehensive income (loss) | 445 | (327) |
Total Liabilities and Stockholders' Equity | $ 633,867 | $ 625,898 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 2 | $ 2 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 23,354,257 | 23,354,082 |
Common stock, shares outstanding | 48,785 | 46,087 |
Shareholders Equity
Shareholders Equity - USD ($) $ in Thousands | Common Stock | Common Stock Warrants | Additional Paid-In Capital | Retained Deficit | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2014 | $ 22,878 | |||||
Balance, Shares at Dec. 31, 2014 | 45,757 | 1,176 | 13,672 | (17,685) | (69) | 42,851 |
Net income | $ 3,377 | $ 3,377 | ||||
Other comprehensive income, net of tax | $ 181 | $ 181 | ||||
Balance at Sep. 30, 2015 | $ 22,878 | |||||
Balance, Shares at Sep. 30, 2015 | 45,757 | 1,176 | 13,672 | (14,308) | 112 | 46,409 |
Balance at Dec. 31, 2015 | $ 23,354 | |||||
Balance, Shares at Dec. 31, 2015 | 46,708 | 764 | 13,965 | (15,023) | (327) | 46,087 |
Net income | $ 1,926 | $ 1,926 | ||||
Other comprehensive income, net of tax | $ 772 | $ 772 | ||||
Balance at Sep. 30, 2016 | $ 23,354 | |||||
Balance, Shares at Sep. 30, 2016 | 46,708 | 764 | 13,965 | (13,097) | 445 | 48,785 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 1,926 | $ 3,377 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,815 | 1,571 |
Provision for loan losses | (500) | (1,200) |
Income on life insurance | (118) | (316) |
Gain on sale of securities available-for-sale | (240) | (35) |
Gain on sale of premises and equipment | (67) | (67) |
Gain on sale of foreclosed assets | (290) | (10) |
Net write-down of carrying value of foreclosed real estate | 165 | 784 |
Accretion of bond premiums/discounts | 711 | 867 |
Deferred tax benefit | (95) | |
Net change in: | ||
Interest receivable | (108) | 140 |
Other assets | (1,261) | 110 |
Accrued interest payable | 6 | 35 |
Accrued expenses and other liabilities | 668 | 550 |
Net Cash Provided by Operating Activities | 2,612 | 5,806 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net (increase) decrease in loans | (27,362) | 15,686 |
Purchase of securities available-for-sale | (9,708) | (25,202) |
Proceeds from sale and maturities of securities available-for-sale | 37,487 | 22,330 |
Net Purchase of equity securities (restricted) | (172) | (72) |
Payments for the purchase of premises and equipment | (4,469) | (1,325) |
Payments for the purchase of other real estate owned | (5) | |
Payments for premiums on life insurance investments | (65) | |
Proceeds from life insurance investment | 1,793 | |
Proceeds from sales of premises and equipment | 735 | 181 |
Proceeds from insurance on other real estate owned | 57 | |
Proceeds from sales of other real estate owned | 2,379 | 1,084 |
Net Cash Provided by (Used in) Investing Activities | (1,110) | 14,462 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net increase (decrease) in Federal Home Loan Bank advances | 6,100 | (900) |
Net change in: | ||
Demand deposits | 13,588 | 2,064 |
Savings deposits | (6,069) | 11,129 |
Time deposits | (9,022) | (33,762) |
Net Cash Provided by (Used in) Financing Activities | 4,597 | (21,469) |
Net increase (decrease) in cash and cash equivalents | 6,099 | (1,201) |
Cash and Cash Equivalents, Beginning of the Year | 26,338 | 35,560 |
Cash and Cash Equivalents, End of the Year | 32,437 | 34,359 |
Supplemental Disclosure of Cash Paid During the Year for: | ||
Interest | 1,925 | 2,360 |
Taxes | 95 | |
Supplemental Disclosure of Non Cash Transactions: | ||
Other real estate acquired in settlement of foreclosed loans | 3,851 | 2,249 |
Loans made to finance sale of foreclosed real estate | 676 | 193 |
Transfer of other real estate to premises and equipment | 125 | |
Change in unrealized gains (losses) on securities available-for-sale | $ 1,169 | $ 274 |
1. NATURE OF OPERATIONS
1. NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
1. NATURE OF OPERATIONS | NOTE 1 NATURE OF OPERATIONS: New Peoples Bankshares, Inc. (“The Company”) is a financial holding company whose principal activity is the ownership and management of a community bank. New Peoples Bank, Inc. (“Bank”) was organized and incorporated under the laws of the Commonwealth of Virginia on December 9, 1997. The Bank commenced operations on October 28, 1998, after receiving regulatory approval. As a state-chartered member bank, the Bank is subject to regulation by the Virginia Bureau of Financial Institutions, the Federal Deposit Insurance Corporation and the Federal Reserve Bank. The Bank provides general banking services to individuals, small and medium size businesses and the professional community of southwestern Virginia, southern West Virginia, and eastern Tennessee. On June 9, 2003, the Company formed two wholly-owned subsidiaries; NPB Financial Services, Inc. and NPB Web Services, Inc. On July 7, 2004 the Company established NPB Capital Trust I for the purpose of issuing trust preferred securities. On September 27, 2006, the Company established NPB Capital Trust 2 for the purpose of issuing additional trust preferred securities. NPB Financial Services, Inc. was a subsidiary of the Company until January 1, 2009 when it became a subsidiary of the Bank. In June 2012 the name of NPB Financial Services, Inc. was changed to NPB Insurance Services, Inc. which operates solely as an insurance agency. On March 4, 2016 the Federal Reserve Bank of Richmond approved the Company’s election to become a financial holding company. In July 2016, the Bank and its wholly-owned subsidiary NPB Insurance Services, Inc. announced by press release it is teaming up with The Hilb Group of Virginia dba CSE Insurance Services, a division of the Hilb Group, LLC (“CSE”), located in Abingdon, Virginia, to provide insurance services for its current and future customers. Effective July 1, 2016, NPB Insurance Services, Inc. sold its existing book of business to CSE. These customers will be serviced by CSE and the Bank will refer future insurance needs of its bank customers to CSE. |
2. ACCOUNTING POLICIES
2. ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 ACCOUNTING PRINCIPLES: These consolidated financial statements conform to U. S. generally accepted accounting principles and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the CompanyÂ’s financial position at September 30, 2016 and December 31, 2015, and the results of operations for the three and nine month periods ended September 30, 2016 and 2015. The notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the CompanyÂ’s Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the three and nine month periods ended September 30, 2016 and 2015 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and related valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. |
3. FORMAL WRITTEN AGREEMENT
3. FORMAL WRITTEN AGREEMENT | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
3. FORMAL WRITTEN AGREEMENT | NOTE 3 FORMAL WRITTEN AGREEMENT: The Company and the Bank had previously entered into the Written Agreement with the Federal Reserve Bank of Richmond and the Virginia State Corporation Commission Bureau of Financial Institutions under which the Company and the Bank were required to take certain actions and implement certain plans. On February 2, 2016, the Company and the Bank announced that they had successfully complied with all of the requirements of the Written Agreement and accordingly, effective January 20, 2016, the agreement had been terminated. |
4. CAPITAL
4. CAPITAL | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
4. CAPITAL | NOTE 4 CAPITAL: Capital Requirements and Ratios The Bank is subject to various capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the BankÂ’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital (as defined) to risk-weighted assets (as defined), Tier 1 capital (as defined) to average assets (as defined), and Common Equity Tier 1 capital (as defined) to risk-weighted assets (as defined). As of September 30, 2016, the Bank meets all capital adequacy requirements to which it is subject. The Company meets eligibility criteria of a small bank holding company in accordance with the Federal Reserve BoardÂ’s Small Bank Holding Company Policy Statement issued in February 2015, and is no longer obligated to report consolidated regulatory capital. The Bank continues to be subject to various capital requirements administered by banking agencies. The BankÂ’s actual capital amounts and ratios are presented in the following table as of September 30, 2016 and December 31, 2015, respectively. These ratios comply with Federal Reserve rules to align with the Basel III Capital requirements effective January 1, 2015. Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2016: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 68,259 16.98 % $ 32,168 8.0 % 40,209 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,216 15.72 % 24,126 6.0 % 32,168 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,216 10.00 % 25,287 4.0 % 31,609 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,216 15.72 % 18,094 4.5 % 26,136 6.5 % December 31, 2015: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 65,713 17.55 % $ 29,954 8.0 % 37,443 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 60,998 16.29 % 22,466 6.0 % 29,954 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 60,998 9.67 % 25,239 4.0 % 31,549 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 60,998 16.29 % 16,849 4.5 % 24,338 6.5 % As of September 30, 2016, the Bank was well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage, and Common Equity Tier 1 ratios as set forth in the above tables. There are no conditions or events since the notification that management believes have changed the BankÂ’s category. Beginning January 1, 2016, a capital conservation buffer of 0.625% became effective. The capital conservation buffer will be gradually increased through January 1, 2019 to 2.5%. Banks will be required to maintain levels that meet the required minimum plus the capital conservation buffer in order to make distributions, such as dividends, or discretionary bonus payments. |
5. INVESTMENT SECURITIES
5. INVESTMENT SECURITIES | 9 Months Ended |
Sep. 30, 2016 | |
Investment securities activity | |
5. INVESTMENT SECURITIES | NOTE 5 INVESTMENT SECURITIES: The amortized cost and estimated fair value of securities (all available-for-sale (“AFS”)) are as follows: Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value September 30, 2016 U.S. Government Agencies $ 26,995 $ 314 $ 51 $ 27,258 Taxable municipals 2,401 73 - 2,474 Corporate bonds 3,100 186 - 3,286 Mortgage backed securities 41,392 239 88 41,543 Total Securities AFS $ 73,888 $ 812 $ 139 $ 74,561 December 31, 2015 U.S. Government Agencies $ 41,488 $ 244 $ 209 $ 41,523 Taxable municipals 3,337 5 61 3,281 Corporate bonds 1,944 15 20 1,939 Mortgage backed securities 55,369 41 511 54,899 Total Securities AFS $ 102,138 $ 305 $ 801 $ 101,642 The following table details unrealized losses and related fair values in the available-for-sale portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2016 and December 31, 2015. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2016 U.S. Government Agencies $ 3,724 $ 42 $ 1,794 $ 9 $ 5,518 $ 51 Mtg. backed securities 7,915 45 4,938 43 12,853 88 Total Securities AFS $ 11,639 $ 87 $ 6,732 $ 52 $ 18,371 $ 139 December 31, 2015 U.S. Government Agencies $ 14,995 $ 81 $ 7,708 $ 128 $ 22,073 $ 209 Taxable municipals 2,136 57 278 4 2,414 61 Corporate bonds 923 20 — — 923 20 Mtg. backed securities 38,945 354 8,719 157 47,664 511 Total Securities AFS $ 56,999 $ 512 $ 16,705 $ 289 $ 73,074 $ 801 At September 30, 2016, the available-for-sale portfolio included forty two investments for which the fair market value was less than amortized cost. At December 31, 2015, the available-for-sale portfolio included one hundred and thirty four investments for which the fair market value was less than amortized cost. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, or more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial conditions and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Based on the Company’s analysis, the Company concluded that no securities had an other-than-temporary impairment. Investment securities with a carrying value of $11.8 million and $15.4 million at September 30, 2016 and December 31, 2015, respectively, were pledged as collateral to secure public deposits and for other purposes required by law. Gross proceeds on the sale of investment securities were $24.8 million and $7.1 million, respectively, for the nine months ended September 30, 2016 and 2015. Gross realized gains and losses pertaining to the sale of investment securities available for sale are detailed as follows: For the three months ended September 30, For the nine months ended September 30, (Dollars are in thousands) 2016 2015 2016 2015 Gross gains realized $ — $ — $ 275 $ 62 Gross losses realized — — (35 ) (27 ) Net realized gains $ — $ — $ 240 $ 35 The amortized cost and fair value of investment securities at September 30, 2016, by contractual maturity, are shown in the following schedule. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Weighted (Dollars are in thousands) Amortized Fair Average Securities Available-for-Sale Cost Value Yield Due in one year or less $ 1,221 $ 1,225 0.91% Due after one year through five years 656 657 1.84% Due after five years through ten years 12,836 13,107 2.50% Due after ten years 59,175 59,572 1.80% Total $ 73,888 $ 74,561 1.91% The Bank, as a member of the Federal Reserve Bank and the Federal Home Loan Bank, is required to hold stock in each. The Bank also owns stock in CBB Financial Corp., which is a correspondent of the Bank. These equity securities are restricted from trading and are recorded at a cost of $2.6 million and $2.4 million as of September 30, 2016 and December 31, 2015, respectively. |
6. LOANS
6. LOANS | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
6. LOANS | NOTE 6 LOANS: Loans receivable outstanding are summarized as follows: (Dollars are in thousands) September 30, 2016 December 31, 2015 Real estate secured: Commercial $ 102,997 $ 98,569 Construction and land development 22,749 14,672 Residential 1-4 family 248,042 242,916 Multifamily 13,205 12,954 Farmland 23,828 22,174 Total real estate loans 410,821 391,285 Commercial 26,246 21,469 Agriculture 4,459 3,793 Consumer installment loans 23,177 24,568 All other loans 18 54 Total loans $ 464,721 $ 441,169 Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) September 30, 2016 December 31, 2015 Real estate secured: Commercial $ 3,671 $ 4,358 Construction and land development 354 436 Residential 1-4 family 8,145 8,338 Multifamily 169 430 Farmland 930 1,170 Total real estate loans 13,269 14,732 Commercial 3 65 Agriculture 83 9 Consumer installment loans 93 41 All other loans — — Total loans receivable on nonaccrual status $ 13,448 $ 14,847 Total interest income not recognized on nonaccrual loans for the nine months ended September 30, 2016 and 2015 was $397 thousand and $486 thousand, respectively. The following table presents information concerning the Company’s investment in loans considered impaired as of September 30, 2016 and December 31, 2015: As of September 30, 2016 (Dollars are in thousands) Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial 3,533 $ 3,959 $ — Construction and land development 7 7 — Residential 1-4 family 3,590 3,888 — Multifamily 305 346 — Farmland 4,358 5,050 — Commercial — — — Agriculture 19 19 — Consumer installment loans — — — All other loans — — — With an allowance recorded: Real estate secured: Commercial 1,589 1,680 172 Construction and land development 253 477 119 Residential 1-4 family 644 652 88 Multifamily — — — Farmland 502 512 293 Commercial 67 67 19 Agriculture 8 8 8 Consumer installment loans 53 53 20 All other loans — — — Total 14,928 $ 16,718 $ 719 As of December 31, 2015 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial 4,212 $ 5,173 $ — Construction and land development 10 10 — Residential 1-4 family 3,037 3,150 — Multifamily 430 471 — Farmland 3,983 4,620 — Commercial — — — Agriculture 36 36 — Consumer installment loans 11 11 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 2,503 2,849 288 Construction and land development 289 499 155 Residential 1-4 family 1,920 2,121 168 Multifamily — — — Farmland 761 778 328 Commercial 69 69 24 Agriculture 18 18 18 Consumer installment loans 45 45 2 All other loans — — — Total 17,324 $ 19,850 $ 983 The following table presents information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Nine Months Ended September 30, 2016 September 30, 2015 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate secured: Commercial $ 4,222 $ 77 $ 4,615 $ 102 Construction and land development 89 — 13 1 Residential 1-4 family 3,716 140 3,623 140 Multifamily 288 14 543 5 Farmland 4,211 163 5,346 94 Commercial — — 333 — Agriculture 29 2 44 3 Consumer installment loans 24 — 36 4 All other loans — — — — With an allowance recorded: Real estate secured: Commercial 1,539 6 3,043 58 Construction and land development 271 — 394 — Residential 1-4 family 939 18 2,294 84 Multifamily 100 — 28 — Farmland 572 18 942 28 Commercial 71 2 83 3 Agriculture 107 1 26 1 Consumer installment loans 30 1 13 — All other loans — — — — Total $ 16,208 $ 442 $ 21,376 $ 523 Three Months Ended September 30, 2016 September 30, 2015 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate secured: Commercial $ 3,965 $ 4 $ 4,916 $ 43 Construction and land development 7 — 12 1 Residential 1-4 family 3,833 37 3,674 47 Multifamily 307 3 434 3 Farmland 4,274 61 4,963 42 Commercial — — 105 (2 ) Agriculture 23 — 36 — Consumer installment loans 22 (2 ) 59 1 All other loans — — — — With an allowance recorded: Real estate secured: Commercial 1,309 6 2,411 18 Construction and land development 259 — 407 — Residential 1-4 family 606 7 2,162 31 Multifamily 83 (4 ) — — Farmland 504 6 781 9 Commercial 68 — 82 1 Agriculture 97 3 23 — Consumer installment loans 32 1 — — All other loans — — — — Total $ 15,389 $ 122 $ 20,065 $ 194 An age analysis of past due loans receivable was as follows: As of September 30, 2016 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate secured: Commercial $ 747 $ 305 $ 1,819 $ 2,871 $ 100,126 $ 102,997 $ — Construction and land development 100 — 64 164 22,585 22,749 — Residential 1-4 family 4,099 1,312 1,669 7,080 240,962 248,042 — Multifamily 1,720 — 67 1,787 11,418 13,205 — Farmland 82 — — 82 23,746 23,828 — Total real estate loans 6,748 1,617 3,619 11,984 398,837 410,821 — Commercial — — — — 26,246 26,246 — Agriculture 15 — 79 94 4,365 4,459 — Consumer installment Loans 91 — 68 159 23,018 23,177 — All other loans — — — — 18 18 — Total loans $ 6,854 $ 1,617 $ 3,766 $ 12,237 $ 452,484 $ 464,721 $ — As of December 31, 2015 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate secured: Commercial $ 311 $ 105 $ 2,534 $ 2,950 $ 95,619 $ 98,569 $ — Construction and land development 144 — 17 161 14,511 14,672 — Residential 1-4 family 4,694 1,487 2,891 9,072 233,844 242,916 — Multifamily 47 — 320 367 12,587 12,954 — Farmland 363 — 251 614 21,560 22,174 — Total real estate loans 5,559 1,592 6,013 13,164 378,121 391,285 — Commercial 18 1 64 83 21,386 21,469 — Agriculture — — — — 3,793 3,793 — Consumer installment Loans 113 1 27 141 24,427 24,568 — All other loans 6 — — 6 48 54 — Total loans $ 5,696 $ 1,594 $ 6,104 $ 13,394 $ 427,775 $ 441,169 $ — The Company categorizes loans receivable into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans receivable as to credit risk. The Company uses the following definitions for risk ratings: Pass Special Mention Substandard A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful Loans classified Doubtful have all the weaknesses inherent in loans classified as Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of September 30, 2016 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 91,708 $ 7,165 $ 4,124 $ — $ 102,997 Construction and land development 20,885 1,539 325 — 22,749 Residential 1-4 family 237,338 2,054 8,650 — 248,042 Multifamily 12,831 — 374 — 13,205 Farmland 17,847 3,531 2,450 — 23,828 Total real estate loans 380,609 14,289 15,923 — 410,821 Commercial 25,483 696 67 — 26,246 Agriculture 4,368 — 91 — 4,459 Consumer installment loans 23,016 — 161 — 23,177 All other loans 18 — — — 18 Total $ 433,494 $ 14,985 $ 16,242 $ — $ 464,721 As of December 31, 2015 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 85,255 $ 7,543 $ 5,771 $ — $ 98,569 Construction and land development 12,262 1,974 436 — 14,672 Residential 1-4 family 229,182 3,572 10,162 — 242,916 Multifamily 12,264 187 503 — 12,954 Farmland 16,663 2,923 2,588 — 22,174 Total real estate loans 355,626 16,199 19,460 — 391,285 Commercial 20,641 724 104 — 21,469 Agriculture 3,767 — 26 — 3,793 Consumer installment loans 24,478 — 90 — 24,568 All other loans 54 — — — 54 Total $ 404,566 $ 16,923 19,680 $ — $ 441,169 |
7. ALLOWANCE FOR LOAN LOSSES
7. ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
7. ALLOWANCE FOR LOAN LOSSES | NOTE 7 ALLOWANCE FOR LOAN LOSSES: The following table details activity in the allowance for loan losses by portfolio segment for the period ended September 30, 2016. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of September 30, 2016 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Advances Provisions Ending Balance Real estate secured: Commercial $ 2,384 $ (417 ) $ 217 $ — $ (238 ) $ 1,946 Construction and land development 332 (5 ) 24 — (5 ) 346 Residential 1-4 family 2,437 (601 ) 78 — 329 2,243 Multifamily 232 (18 ) — — 19 233 Farmland 675 (2 ) 102 — (144 ) 631 Total real estate loans 6,060 (1,043 ) 421 — (39 ) 5,399 Commercial 266 (65 ) 52 — (46 ) 207 Agriculture 124 — 6 — (87 ) 43 Consumer installment loans 128 (22 ) 16 — 9 131 All other loans 1 — — — (1 ) — Unallocated 914 — — — (336 ) 578 Total $ 7,493 $ (1,130 ) $ 495 $ — $ (500 ) $ 6,358 Allowance for Loan Losses Recorded Investment in Loans As of September 30, 2016 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 172 $ 1,774 $ 1,946 $ 5,122 $ 97,875 $ 102,997 Construction and land development 119 227 346 260 22,489 22,749 Residential 1-4 family 88 2,155 2,243 4,234 243,808 248,042 Multifamily - 233 233 305 12,900 13,205 Farmland 293 338 631 4,860 18,968 23,828 Total real estate loans 672 4,727 5,399 14,781 396,040 410,821 Commercial 19 188 207 67 26,179 26,246 Agriculture 8 35 43 27 4,432 4,459 Consumer installment loans 20 111 131 53 23,124 23,177 All other loans - - - - 18 18 Unallocated - 578 578 - - - Total $ 719 $ 5,639 $ 6,358 $ 14,928 $ 449,793 $ 464,721 The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 2015. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. As of December 31, 2015 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Advances Provisions Ending Balance Real estate secured: Commercial $ 4,418 $ (724 ) $ 147 $ — $ (1,457 ) $ 2,384 Construction and land development 199 (226 ) 215 — 144 332 Residential 1-4 family 2,572 (743 ) 93 — 515 2,437 Multifamily 154 (384 ) 6 — 456 232 Farmland 913 (90 ) 214 — (362 ) 675 Total real estate loans 8,256 (2,167 ) 675 — (704 ) 6,060 Commercial 457 (92 ) 1,412 — (1,511 ) 266 Agriculture 125 — 3 — (4 ) 124 Consumer installment loans 171 (101 ) 41 — 17 128 All other loans 1 — — — — 1 Unallocated 912 — — — 2 914 Total $ 9,922 $ (2,360 ) $ 2,131 $ — $ (2,200 ) $ 7,493 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2015 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 288 $ 2,096 $ 2,384 $ 6,715 $ 91,854 $ 98,569 Construction and land development 155 177 332 299 14,373 14,672 Residential 1-4 family 168 2,269 2,437 4,957 237,959 242,916 Multifamily - 232 232 430 12,524 12,954 Farmland 328 347 675 4,744 17,430 22,174 Total real estate loans 939 5,121 6,060 17,145 374,140 391,285 Commercial 24 242 266 69 21,400 21,469 Agriculture 18 106 124 54 3,739 3,793 Consumer installment loans 2 126 128 56 24,512 24,568 All other loans - 1 1 - 54 54 Unallocated - 914 914 - - - Total $ 983 $ 6,510 7,493 $ 17,324 $ 423,845 $ 441,169 In determining the amount of our allowance, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions, as well as the requirements of the written agreement and other regulatory input. If our assumptions prove to be incorrect, our current allowance may not be sufficient to cover future loan losses and we may experience significant increases to our provision. |
8. TROUBLED DEBT RESTRUCTURINGS
8. TROUBLED DEBT RESTRUCTURINGS | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
8. TROUBLED DEBT RESTRUCTURINGS | NOTE 8 TROUBLED DEBT RESTRUCTURINGS: At September 30, 2016 there were $9.4 million in loans that are classified as troubled debt restructurings compared to $9.5 million at December 31, 2015. The following table presents information related to loans modified as troubled debt restructurings during the nine and three months ended September 30, 2016 and 2015. For the nine months ended September 30, 2016 For the nine months ended September 30, 2015 Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial 1 $ 341 $ 341 — $ — $ — Construction and land Development — — — 1 551 302 Residential 1-4 family — — — 2 225 224 Multifamily — — — — — — Farmland 1 291 280 — — — Total real estate loans 2 632 621 3 776 526 Commercial — — — — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 2 $ 632 $ 621 3 $ 776 $ 526 For the three months ended September 30, 2016 For the three months ended September 30, 2015 Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land Development — — — — — — Residential 1-4 family — — — 2 225 224 Multifamily — — — — — — Farmland — — — — — — Total real estate loans — — — 2 225 224 Commercial — — — — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total — $ — $ — 2 $ 225 $ 224 During the nine months ended September 30, 2016, the Company modified the terms of two loans for which the modification was considered to be a troubled debt restructuring. On one loan the interest rate and maturity date were not modified; however, the payment terms were changed. On one loan the interest rate was lowered and the payment terms and maturity date were changed. During the nine months ended September 30, 2015, the Company modified the terms of three loans for which the modification was considered to be a troubled debt restructuring. On two of the loans we modified the terms and lowered the interest rate. On one loan the interest rate was not modified; however, the maturity date was extended. During the three months ended September 30, 2016, the Company modified no loans that were considered to be a troubled debt restructuring. During the three months ended September 30, 2015, the Company modified the terms of two loans for which the modification was considered to be a troubled debt restructuring. On the two loans we modified the terms and lowered the interest rate. One commercial real estate loan with a recorded investment of $302 thousand that had been modified as a troubled debt restructuring defaulted during the nine months ended September 30, 2016, which was within twelve months of the loan’s modification date. No loans modified as troubled debt restructurings defaulted during the nine months ended September 30, 2015. No loans modified as troubled debt restructurings defaulted during the three months ended September 30, 2016 and 2015, which were within twelve months of their modification date. Generally, a troubled debt restructuring is considered to be in default once it becomes 90 days or more past due following a modification. In determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings in its estimate. The Company evaluates all troubled debt restructurings for possible further impairment. As a result, the allowance may be increased, adjustments may be made in the allocation of the allowance, or charge-offs may be taken to further writedown the carrying value of the loan. |
9. OTHER REAL ESTATE OWNED
9. OTHER REAL ESTATE OWNED | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
9. OTHER REAL ESTATE OWNED | NOTE 9 OTHER REAL ESTATE OWNED: The following table summarizes the activity in other real estate owned for the nine months ended September 30, 2016 and the year ended December 31, 2015: (Dollars are in thousands) September 30, 2016 December 31, 2015 Balance, beginning of period $ 12,398 $ 15,049 Additions 3,851 3,277 Purchases of other real estate owned — 12 Transfers of other real estate owned (125 ) — Donation of other real estate owned — (33 ) Proceeds from sales (2,379 ) (1,831 ) Loans made to finance sales (676 ) (878 ) Proceeds from insurance claims — (101 ) Adjustment of carrying value (165 ) (3,246 ) Deferred gain from sales — 50 Gain from sales 290 99 Balance, end of period $ 13,194 $ 12,398 |
10. EARNINGS PER SHARE
10. EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2016 | |
Income Per Share | |
10. EARNINGS PER SHARE | NOTE 10 EARNINGS PER SHARE: Basic earnings per share computations are based on the weighted average number of shares outstanding during each period. Dilutive earnings per share reflect the additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued relate to outstanding options and common stock warrants are determined by the Treasury method. For the three and nine months ended September 30, 2016 and 2015, potential common shares of 882,178 and 1,539,877, respectively, were anti-dilutive and were not included in the calculation. Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except Share and Per Share Data) For the three months ended September 30, For the nine months ended September 30, 2016 2015 2016 2015 Net income $ 346 $ 2,293 $ 1,926 $ 3,377 Weighted average shares outstanding 23,354,111 22,878,654 23,354,092 22,878,654 Dilutive shares for stock options and warrants — — — — Weighted average dilutive shares outstanding 23,354,111 22,878,654 23,354,092 22,878,654 Basic income per share $ 0.01 $ 0.10 $ 0.08 $ 0.15 Diluted income per share $ 0.01 $ 0.10 $ 0.08 $ 0.15 |
11. TRUST PREFERRED SECURITIES
11. TRUST PREFERRED SECURITIES AND DEFERRAL OF INTEREST PAYMENTS | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
11. TRUST PREFERRED SECURITIES AND DEFERRAL OF INTEREST PAYMENTS | NOTE 11 TRUST PREFERRED SECURITIES AND DEFERRAL OF INTEREST PAYMENTS: On July 7, 2004, the Company completed the issuance of $11.3 million in floating rate trust preferred securities offered by its wholly owned subsidiary, NPB Capital Trust I. The proceeds of the funds were used for general corporate purposes which included capital management for affiliates, retirement of indebtedness and other investments. The securities have a floating rate of 3 month LIBOR plus 260 basis points, which resets quarterly, with a current rate at September 30, 2016 of 3.28%. On September 27, 2006, the Company completed the issuance of $5.2 million in floating rate trust preferred securities offered by its wholly owned subsidiary, NPB Capital Trust 2. The proceeds of the funds were used for general corporate purposes, which include capital management for affiliates and the acquisition of two branch banks. The securities have a floating rate of 3 month LIBOR plus 177 basis points, which resets quarterly, with a current rate at September 30, 2016 of 2.45%. Under the terms of the subordinated debt transactions, the securities mature in 30 years from the date of issuance and are redeemable, in whole or in part, without penalty, at the option of the Company after five years. Due to the ability to defer interest and principal payments for 60 months without being considered in default, the regulatory agencies consider the trust preferred securities as Tier 1 capital up to certain limits. In October 2009, a restriction to pay dividends from the Bank to the Company was issued by the Federal Reserve Bank of Richmond. In July 2010, the Company and the Bank entered into the Written Agreement discussed in Note 3. The Written Agreement prohibited the payment of interest on the trust preferred securities without prior regulatory approval. As a result, interest on trust preferred securities was deferred. This deferral was for a period of 60 months, and was set to expire on January 7, 2015. In the fourth quarter of 2014, the Company requested and received regulatory approval to pay the cumulative deferred interest on the trust preferred securities due on January 7, 2015 totaling $2.5 million, which the Company paid on December 10, 2014. As a result of this payment there has been no interest in arrears on the trust preferred securities since that date. The Company is currently not deferring the quarterly interest payments on the trust preferred securities. However, as discussed above, regulatory approval was needed to pay the interest while the Company was under the formal Written Agreement. In March 2015 the Company requested and received regulatory approval to pay the $107 thousand in interest on the trust preferred securities due on April 7, 2015, which the Company paid on April 3, 2015. In June 2015 the Company requested and received regulatory approval to pay the $109 thousand in interest on the trust preferred securities due on July 7, 2015, which the Company paid on July 2, 2015. In September 2015 the Company requested and received regulatory approval to pay the $111 thousand in interest on the trust preferred securities due on October 7, 2015, which the Company paid on October 5, 2015. In December 2015 the Company requested and received regulatory approval to pay the $112 thousand in interest on the trust preferred securities due on January 7, 2016, which the Company paid on January 5, 2016. The restriction requiring regulatory approval before the payment of interest on the trust preferred securities was lifted when the Written Agreement was terminated effective January 20, 2016. On April 4, 2016, the Company paid $124 thousand in interest on the trust preferred securities, which was due on April 7, 2016. On July 6, 2016 the Company paid $124 thousand in interest on the trust preferred securities, which was due on July 7, 2016. On October 4, 2016 the Company paid $127 thousand in interest on the trust preferred securities, which was due on October 7, 2016. |
12. FAIR VALUES
12. FAIR VALUES | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
12. FAIR VALUES | NOTE 12 FAIR VALUES: The financial reporting standard, “Fair Value Measurements and Disclosures” provides a framework for measuring fair value under generally accepted accounting principles and requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available-for-sale investment securities) or on a nonrecurring basis (for example, impaired loans and other real estate acquired through foreclosure). Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair Value Measurements and Disclosures also establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an exchange market, as well as U. S. Treasury, other U. S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets. Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain derivative contracts and impaired loans. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. For example, this category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts. Investment Securities Available-for-Sale – Loans - Foreclosed Assets – Assets and liabilities measured at fair value are as follows as of September 30, 2016 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available-for-sale investments U.S. Government Agencies $ — $ 27,258 $ — Taxable municipals — 2,474 — Corporate bonds — 3,286 — Mortgage backed securities — 41,543 — (On a non-recurring basis) Other real estate owned — — 13,194 Impaired loans: Real estate secured: Commercial — — 4,950 Construction and land development — — 141 Residential 1-4 family — — 4,146 Multifamily — — 305 Farmland — — 4,567 Commercial — — 48 Agriculture — — 19 Consumer installment loans — — 33 All other loans — — — Total $ — $ 74,561 $ 27,403 Assets and liabilities measured at fair value are as follows as of December 31, 2015 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available-for-sale investments U.S. Government Agencies $ — $ 41,523 $ — Taxable municipals — 3,281 — Corporate bonds — 1,939 — Mortgage backed securities — 54,899 — (On a non-recurring basis) Other real estate owned — — 12,398 Impaired loans: Real estate secured: Commercial — — 6,427 Construction and land development — — 144 Residential 1-4 family — — 4,789 Multifamily — — 430 Farmland — — 4,416 Commercial — — 45 Agriculture — — 36 Consumer installment loans — — 54 All other loans — — — Total $ — $ 101,642 $ 28,739 For Level 3 assets measured at fair value on a recurring or non-recurring basis as of September 30, 2016, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at September 30, 2016 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 14,209 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 18% Other Real Estate Owned $ 13,194 Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18% Fair Value of Financial Instruments Fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practical to estimate the value is based upon the characteristics of the instruments and relevant market information. Financial instruments include cash, evidence of ownership in an entity, or contracts that convey or impose on an entity that contractual right or obligation to either receive or deliver cash for another financial instrument. The following summary presents the methodologies and assumptions used to estimate the fair value of the Company’s financial instruments presented below. The information used to determine fair value is highly subjective and judgmental in nature and, therefore, the results may not be precise. Subjective factors include, among other things, estimates of cash flows, risk characteristics, credit quality, and interest rates, all of which are subject to change. Since the fair value is estimated as of the balance sheet date, the amounts that will actually be realized or paid upon settlement or maturity on these various instruments could be significantly different. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of September 30, 2016 and December 31, 2015. This table excludes financial instruments for which the carrying amount approximates fair value. The carrying value of cash and due from banks, federal funds sold, interest-bearing deposits, deposits with no stated maturities, trust preferred securities and accrued interest approximates fair value. The remaining financial instruments were valued based on the present value of estimated future cash flows, discounted at various rates in effect for similar instruments as of September 30, 2016 and December 31, 2015. Fair Value Measurements (Dollars are in thousands) Carrying Amount Fair Value Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) September 30, 2016 Financial Instruments – Assets Net Loans $ 458,363 $ 461,025 $ — $ 446,816 $ 14,209 Financial Instruments – Liabilities Time Deposits 247,956 247,529 — 247,529 — FHLB Advances 9,058 9,110 — 9,110 — December 31, 2015 Financial Instruments – Assets Net Loans $ 433,676 $ 438,589 $ — $ 422,248 $ 16,341 Financial Instruments – Liabilities Time Deposits 256,978 256,797 — 256,797 — FHLB Advances 2,958 2,958 — 2,958 — |
13. RECENT ACCOUNTING DEVELOPME
13. RECENT ACCOUNTING DEVELOPMENTS | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
13. RECENT ACCOUNTING DEVELOPMENTS | NOTE 13 RECENT ACCOUNTING DEVELOPMENTS: The following is a summary of recent authoritative announcements: In May 2014, the Financial Accounting Standards Board (“FASB”) issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In January 2015, the FASB issued guidance to eliminate from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company applied the guidance prospectively. Adoption of these amendments did not have a material effect on the Company’s financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under U.S. GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. Adoption of these amendments did not have a material effect on the Company’s financial statements. In June 2015, the FASB issued amendments to clarify the Accounting Standards Codification (“ASC”), correct unintended application of guidance, and make minor improvements to the ASC that are not expected to have a significant effect on current accounting practice or create a significant cost to most entities. The amendments were effective upon issuance (June 12, 2015) for amendments that do not have transition guidance. Amendments that are subject to transition guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. Adoption of these amendments did not have a material effect on the Company’s financial statements. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. As a result of the deferral the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB issued amendments to the Interest topic of the ASC to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. Adoption of these amendments did not have a material effect on the Company’s financial statements. In January 2016, the FASB amended the Financial Instruments topic of the ASC to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them to apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not expect these amendments to have a material effect on its financial statements. In April 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify guidance related to identifying performance obligations and accounting for licenses of intellectual property. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In May 2016, the FASB amended the Revenue from Contracts with Customers topic of the ASC to clarify guidance related to collectability, noncash consideration, presentation of sales tax, and transition. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In August 2016, the FASB amended the Statement of Cash Flows topic of the ASC to clarify how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments will be effective for the Company for fiscal years beginning after December 15, 2017 including interim periods within those fiscal years. The Company does not expect these amendments to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
2. ACCOUNTING POLICIES (Policie
2. ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE 2 ACCOUNTING PRINCIPLES: These consolidated financial statements conform to U. S. generally accepted accounting principles and to general industry practices. In the opinion of management, the accompanying consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the CompanyÂ’s financial position at September 30, 2016 and December 31, 2015, and the results of operations for the three and nine month periods ended September 30, 2016 and 2015. The notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the CompanyÂ’s Annual Report on Form 10-K for the year ended December 31, 2015. The results of operations for the three and nine month periods ended September 30, 2016 and 2015 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The determination of the adequacy of the allowance for loan losses and the determination of the deferred tax asset and related valuation allowance are based on estimates that are particularly susceptible to significant changes in the economic environment and market conditions. |
4. CAPITAL (Tables)
4. CAPITAL (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Schedule Of Capital Requirements | Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio September 30, 2016: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 68,259 16.98 % $ 32,168 8.0 % 40,209 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,216 15.72 % 24,126 6.0 % 32,168 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,216 10.00 % 25,287 4.0 % 31,609 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,216 15.72 % 18,094 4.5 % 26,136 6.5 % December 31, 2015: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. 65,713 17.55 % $ 29,954 8.0 % 37,443 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 60,998 16.29 % 22,466 6.0 % 29,954 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 60,998 9.67 % 25,239 4.0 % 31,549 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 60,998 16.29 % 16,849 4.5 % 24,338 6.5 % |
5. INVESTMENT SECURITIES (Table
5. INVESTMENT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investment securities activity | |
Schedule Of Securities' Amortized Cost And Estimated Fair Value | Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value September 30, 2016 U.S. Government Agencies $ 26,995 $ 314 $ 51 $ 27,258 Taxable municipals 2,401 73 - 2,474 Corporate bonds 3,100 186 - 3,286 Mortgage backed securities 41,392 239 88 41,543 Total Securities AFS $ 73,888 $ 812 $ 139 $ 74,561 December 31, 2015 U.S. Government Agencies $ 41,488 $ 244 $ 209 $ 41,523 Taxable municipals 3,337 5 61 3,281 Corporate bonds 1,944 15 20 1,939 Mortgage backed securities 55,369 41 511 54,899 Total Securities AFS $ 102,138 $ 305 $ 801 $ 101,642 |
Schedule Of Fair Value And Gross Unrealized Losses On Investment Securities In A Continuous Unrealized Loss Position | Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses September 30, 2016 U.S. Government Agencies $ 3,724 $ 42 $ 1,794 $ 9 $ 5,518 $ 51 Mtg. backed securities 7,915 45 4,938 43 12,853 88 Total Securities AFS $ 11,639 $ 87 $ 6,732 $ 52 $ 18,371 $ 139 December 31, 2015 U.S. Government Agencies $ 14,995 $ 81 $ 7,708 $ 128 $ 22,073 $ 209 Taxable municipals 2,136 57 278 4 2,414 61 Corporate bonds 923 20 — — 923 20 Mtg. backed securities 38,945 354 8,719 157 47,664 511 Total Securities AFS $ 56,999 $ 512 $ 16,705 $ 289 $ 73,074 $ 801 |
Schedule of realized gains and losses pertaining to the sale of investment securities available for sale | For the three months ended September 30, For the nine months ended September 30, (Dollars are in thousands) 2016 2015 2016 2015 Gross gains realized $ — $ — $ 275 $ 62 Gross losses realized — — (35 ) (27 ) Net realized gains $ — $ — $ 240 $ 35 |
The Amortized Cost And Fair Value Of Investment Securities' Contractual Maturity | Weighted (Dollars are in thousands) Amortized Fair Average Securities Available-for-Sale Cost Value Yield Due in one year or less $ 1,221 $ 1,225 0.91% Due after one year through five years 656 657 1.84% Due after five years through ten years 12,836 13,107 2.50% Due after ten years 59,175 59,572 1.80% Total $ 73,888 $ 74,561 1.91% |
6. LOANS (Tables)
6. LOANS (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Summary Of Loans Receivable Outstanding | (Dollars are in thousands) September 30, 2016 December 31, 2015 Real estate secured: Commercial $ 102,997 $ 98,569 Construction and land development 22,749 14,672 Residential 1-4 family 248,042 242,916 Multifamily 13,205 12,954 Farmland 23,828 22,174 Total real estate loans 410,821 391,285 Commercial 26,246 21,469 Agriculture 4,459 3,793 Consumer installment loans 23,177 24,568 All other loans 18 54 Total loans $ 464,721 $ 441,169 |
Summary Of Loans Receivable On Nonaccrual Status | (Dollars are in thousands) September 30, 2016 December 31, 2015 Real estate secured: Commercial $ 3,671 $ 4,358 Construction and land development 354 436 Residential 1-4 family 8,145 8,338 Multifamily 169 430 Farmland 930 1,170 Total real estate loans 13,269 14,732 Commercial 3 65 Agriculture 83 9 Consumer installment loans 93 41 All other loans — — Total loans receivable on nonaccrual status $ 13,448 $ 14,847 |
Summary Of Impaired Loans | As of September 30, 2016 (Dollars are in thousands) Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial 3,533 $ 3,959 $ — Construction and land development 7 7 — Residential 1-4 family 3,590 3,888 — Multifamily 305 346 — Farmland 4,358 5,050 — Commercial — — — Agriculture 19 19 — Consumer installment loans — — — All other loans — — — With an allowance recorded: Real estate secured: Commercial 1,589 1,680 172 Construction and land development 253 477 119 Residential 1-4 family 644 652 88 Multifamily — — — Farmland 502 512 293 Commercial 67 67 19 Agriculture 8 8 8 Consumer installment loans 53 53 20 All other loans — — — Total 14,928 $ 16,718 $ 719 As of December 31, 2015 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial 4,212 $ 5,173 $ — Construction and land development 10 10 — Residential 1-4 family 3,037 3,150 — Multifamily 430 471 — Farmland 3,983 4,620 — Commercial — — — Agriculture 36 36 — Consumer installment loans 11 11 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 2,503 2,849 288 Construction and land development 289 499 155 Residential 1-4 family 1,920 2,121 168 Multifamily — — — Farmland 761 778 328 Commercial 69 69 24 Agriculture 18 18 18 Consumer installment loans 45 45 2 All other loans — — — Total 17,324 $ 19,850 $ 983 |
Summary of average impaired loans | Nine Months Ended September 30, 2016 September 30, 2015 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate secured: Commercial $ 4,222 $ 77 $ 4,615 $ 102 Construction and land development 89 — 13 1 Residential 1-4 family 3,716 140 3,623 140 Multifamily 288 14 543 5 Farmland 4,211 163 5,346 94 Commercial — — 333 — Agriculture 29 2 44 3 Consumer installment loans 24 — 36 4 All other loans — — — — With an allowance recorded: Real estate secured: Commercial 1,539 6 3,043 58 Construction and land development 271 — 394 — Residential 1-4 family 939 18 2,294 84 Multifamily 100 — 28 — Farmland 572 18 942 28 Commercial 71 2 83 3 Agriculture 107 1 26 1 Consumer installment loans 30 1 13 — All other loans — — — — Total $ 16,208 $ 442 $ 21,376 $ 523 Three Months Ended September 30, 2016 September 30, 2015 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Real estate secured: Commercial $ 3,965 $ 4 $ 4,916 $ 43 Construction and land development 7 — 12 1 Residential 1-4 family 3,833 37 3,674 47 Multifamily 307 3 434 3 Farmland 4,274 61 4,963 42 Commercial — — 105 (2 ) Agriculture 23 — 36 — Consumer installment loans 22 (2 ) 59 1 All other loans — — — — With an allowance recorded: Real estate secured: Commercial 1,309 6 2,411 18 Construction and land development 259 — 407 — Residential 1-4 family 606 7 2,162 31 Multifamily 83 (4 ) — — Farmland 504 6 781 9 Commercial 68 — 82 1 Agriculture 97 3 23 — Consumer installment loans 32 1 — — All other loans — — — — Total $ 15,389 $ 122 $ 20,065 $ 194 |
Summary Of Age Analysis Of Past Due Loans Receivable | As of September 30, 2016 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate secured: Commercial $ 747 $ 305 $ 1,819 $ 2,871 $ 100,126 $ 102,997 $ — Construction and land development 100 — 64 164 22,585 22,749 — Residential 1-4 family 4,099 1,312 1,669 7,080 240,962 248,042 — Multifamily 1,720 — 67 1,787 11,418 13,205 — Farmland 82 — — 82 23,746 23,828 — Total real estate loans 6,748 1,617 3,619 11,984 398,837 410,821 — Commercial — — — — 26,246 26,246 — Agriculture 15 — 79 94 4,365 4,459 — Consumer installment Loans 91 — 68 159 23,018 23,177 — All other loans — — — — 18 18 — Total loans $ 6,854 $ 1,617 $ 3,766 $ 12,237 $ 452,484 $ 464,721 $ — As of December 31, 2015 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due Real estate secured: Commercial $ 311 $ 105 $ 2,534 $ 2,950 $ 95,619 $ 98,569 $ — Construction and land development 144 — 17 161 14,511 14,672 — Residential 1-4 family 4,694 1,487 2,891 9,072 233,844 242,916 — Multifamily 47 — 320 367 12,587 12,954 — Farmland 363 — 251 614 21,560 22,174 — Total real estate loans 5,559 1,592 6,013 13,164 378,121 391,285 — Commercial 18 1 64 83 21,386 21,469 — Agriculture — — — — 3,793 3,793 — Consumer installment Loans 113 1 27 141 24,427 24,568 — All other loans 6 — — 6 48 54 — Total loans $ 5,696 $ 1,594 $ 6,104 $ 13,394 $ 427,775 $ 441,169 $ — |
Summary Of Risk Category Of Loans Receivable | As of September 30, 2016 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 91,708 $ 7,165 $ 4,124 $ — $ 102,997 Construction and land development 20,885 1,539 325 — 22,749 Residential 1-4 family 237,338 2,054 8,650 — 248,042 Multifamily 12,831 — 374 — 13,205 Farmland 17,847 3,531 2,450 — 23,828 Total real estate loans 380,609 14,289 15,923 — 410,821 Commercial 25,483 696 67 — 26,246 Agriculture 4,368 — 91 — 4,459 Consumer installment loans 23,016 — 161 — 23,177 All other loans 18 — — — 18 Total $ 433,494 $ 14,985 $ 16,242 $ — $ 464,721 As of December 31, 2015 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 85,255 $ 7,543 $ 5,771 $ — $ 98,569 Construction and land development 12,262 1,974 436 — 14,672 Residential 1-4 family 229,182 3,572 10,162 — 242,916 Multifamily 12,264 187 503 — 12,954 Farmland 16,663 2,923 2,588 — 22,174 Total real estate loans 355,626 16,199 19,460 — 391,285 Commercial 20,641 724 104 — 21,469 Agriculture 3,767 — 26 — 3,793 Consumer installment loans 24,478 — 90 — 24,568 All other loans 54 — — — 54 Total $ 404,566 $ 16,923 19,680 $ — $ 441,16 9 |
7. ALLOWANCE FOR LOAN LOSSES (T
7. ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Loans and Leases Receivable, Allowance [Abstract] | |
Summary Of Activity In The Allowance For Loan Losses By Portfolio Segment | As of September 30, 2016 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Advances Provisions Ending Balance Real estate secured: Commercial $ 2,384 $ (417 ) $ 217 $ — $ (238 ) $ 1,946 Construction and land development 332 (5 ) 24 — (5 ) 346 Residential 1-4 family 2,437 (601 ) 78 — 329 2,243 Multifamily 232 (18 ) — — 19 233 Farmland 675 (2 ) 102 — (144 ) 631 Total real estate loans 6,060 (1,043 ) 421 — (39 ) 5,399 Commercial 266 (65 ) 52 — (46 ) 207 Agriculture 124 — 6 — (87 ) 43 Consumer installment loans 128 (22 ) 16 — 9 131 All other loans 1 — — — (1 ) — Unallocated 914 — — — (336 ) 578 Total $ 7,493 $ (1,130 ) $ 495 $ — $ (500 ) $ 6,358 Allowance for Loan Losses Recorded Investment in Loans As of September 30, 2016 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 172 $ 1,774 $ 1,946 $ 5,122 $ 97,875 $ 102,997 Construction and land development 119 227 346 260 22,489 22,749 Residential 1-4 family 88 2,155 2,243 4,234 243,808 248,042 Multifamily - 233 233 305 12,900 13,205 Farmland 293 338 631 4,860 18,968 23,828 Total real estate loans 672 4,727 5,399 14,781 396,040 410,821 Commercial 19 188 207 67 26,179 26,246 Agriculture 8 35 43 27 4,432 4,459 Consumer installment loans 20 111 131 53 23,124 23,177 All other loans - - - - 18 18 Unallocated - 578 578 - - - Total $ 719 $ 5,639 $ 6,358 $ 14,928 $ 449,793 $ 464,721 |
Schedule Of Allocation Of Portion Of Allowance | As of December 31, 2015 (Dollars are in thousands) Beginning Balance Charge Offs Recoveries Advances Provisions Ending Balance Real estate secured: Commercial $ 4,418 $ (724 ) $ 147 $ — $ (1,457 ) $ 2,384 Construction and land development 199 (226 ) 215 — 144 332 Residential 1-4 family 2,572 (743 ) 93 — 515 2,437 Multifamily 154 (384 ) 6 — 456 232 Farmland 913 (90 ) 214 — (362 ) 675 Total real estate loans 8,256 (2,167 ) 675 — (704 ) 6,060 Commercial 457 (92 ) 1,412 — (1,511 ) 266 Agriculture 125 — 3 — (4 ) 124 Consumer installment loans 171 (101 ) 41 — 17 128 All other loans 1 — — — — 1 Unallocated 912 — — — 2 914 Total $ 9,922 $ (2,360 ) $ 2,131 $ — $ (2,200 ) $ 7,493 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 2015 (Dollars are in thousands) Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Real estate secured: Commercial $ 288 $ 2,096 $ 2,384 $ 6,715 $ 91,854 $ 98,569 Construction and land development 155 177 332 299 14,373 14,672 Residential 1-4 family 168 2,269 2,437 4,957 237,959 242,916 Multifamily - 232 232 430 12,524 12,954 Farmland 328 347 675 4,744 17,430 22,174 Total real estate loans 939 5,121 6,060 17,145 374,140 391,285 Commercial 24 242 266 69 21,400 21,469 Agriculture 18 106 124 54 3,739 3,793 Consumer installment loans 2 126 128 56 24,512 24,568 All other loans - 1 1 - 54 54 Unallocated - 914 914 - - - Total $ 983 $ 6,510 7,493 $ 17,324 $ 423,845 $ 441,169 |
8. TROUBLED DEBT RESTRUCTURING
8. TROUBLED DEBT RESTRUCTURING (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Troubled Debt Restructuring, Debtor, Current Period [Abstract] | |
Schedule Of Loans Modified As Troubled Debt Restructurings | For the nine months ended September 30, 2016 For the nine months ended September 30, 2015 Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial 1 $ 341 $ 341 — $ — $ — Construction and land Development — — — 1 551 302 Residential 1-4 family — — — 2 225 224 Multifamily — — — — — — Farmland 1 291 280 — — — Total real estate loans 2 632 621 3 776 526 Commercial — — — — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 2 $ 632 $ 621 3 $ 776 $ 526 For the three months ended September 30, 2016 For the three months ended September 30, 2015 Troubled Debt Restructurings (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land Development — — — — — — Residential 1-4 family — — — 2 225 224 Multifamily — — — — — — Farmland — — — — — — Total real estate loans — — — 2 225 224 Commercial — — — — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total — $ — $ — 2 $ 225 $ 224 |
9. OTHER REAL ESTATE OWNED (Tab
9. OTHER REAL ESTATE OWNED (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Real Estate Owned Tables | |
Other Real Estate | (Dollars are in thousands) September 30, 2016 December 31, 2015 Balance, beginning of period $ 12,398 $ 15,049 Additions 3,851 3,277 Purchases of other real estate owned — 12 Transfers of other real estate owned (125 ) — Donation of other real estate owned — (33 ) Proceeds from sales (2,379 ) (1,831 ) Loans made to finance sales (676 ) (878 ) Proceeds from insurance claims — (101 ) Adjustment of carrying value (165 ) (3,246 ) Deferred gain from sales — 50 Gain from sales 290 99 Balance, end of period $ 13,194 $ 12,398 |
10. EARNINGS PER SHARE (Tables)
10. EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Per Share | |
Schedule Of Anti-Dilutive Income Per Common Share | (Amounts in Thousands, Except Share and Per Share Data) For the three months ended September 30, For the nine months ended September 30, 2016 2015 2016 2015 Net income $ 346 $ 2,293 $ 1,926 $ 3,377 Weighted average shares outstanding 23,354,111 22,878,654 23,354,092 22,878,654 Dilutive shares for stock options and warrants — — — — Weighted average dilutive shares outstanding 23,354,111 22,878,654 23,354,092 22,878,654 Basic income per share $ 0.01 $ 0.10 $ 0.08 $ 0.15 Diluted income per share $ 0.01 $ 0.10 $ 0.08 $ 0.15 |
12. FAIR VALUES (Tables)
12. FAIR VALUES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary Of Assets And Liabilities Measured At Fair Value | (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available-for-sale investments U.S. Government Agencies $ — $ 27,258 $ — Taxable municipals — 2,474 — Corporate bonds — 3,286 — Mortgage backed securities — 41,543 — (On a non-recurring basis) Other real estate owned — — 13,194 Impaired loans: Real estate secured: Commercial — — 4,950 Construction and land development — — 141 Residential 1-4 family — — 4,146 Multifamily — — 305 Farmland — — 4,567 Commercial — — 48 Agriculture — — 19 Consumer installment loans — — 33 All other loans — — — Total $ — $ 74,561 $ 27,403 Assets and liabilities measured at fair value are as follows as of December 31, 2015 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available-for-sale investments U.S. Government Agencies $ — $ 41,523 $ — Taxable municipals — 3,281 — Corporate bonds — 1,939 — Mortgage backed securities — 54,899 — (On a non-recurring basis) Other real estate owned — — 12,398 Impaired loans: Real estate secured: Commercial — — 6,427 Construction and land development — — 144 Residential 1-4 family — — 4,789 Multifamily — — 430 Farmland — — 4,416 Commercial — — 45 Agriculture — — 36 Consumer installment loans — — 54 All other loans — — — Total $ — $ 101,642 $ 28,739 |
Schedule Of Significant Unobservable Inputs In Level 3 Assets | (Dollars in thousands) Fair Value at September 30, 2016 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 14,209 Appraised Value/Discounted Cash Flows/Market Value of Note Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 – 18% Other Real Estate Owned $ 13,194 Appraised Value/Comparable Sales/Other Estimates from Independent Sources Discounts to reflect current market conditions and estimated costs to sell 0 – 18% |
Estimated Fair Value Of Financial Instruments | Fair Value Measurements (Dollars are in thousands) Carrying Amount Fair Value Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) September 30, 2016 Financial Instruments – Assets Net Loans $ 458,363 $ 461,025 $ — $ 446,816 $ 14,209 Financial Instruments – Liabilities Time Deposits 247,956 247,529 — 247,529 — FHLB Advances 9,058 9,110 — 9,110 — December 31, 2015 Financial Instruments – Assets Net Loans $ 433,676 $ 438,589 $ — $ 422,248 $ 16,341 Financial Instruments – Liabilities Time Deposits 256,978 256,797 — 256,797 — FHLB Advances 2,958 2,958 — 2,958 — |
4. CAPITAL - Schedule of Capita
4. CAPITAL - Schedule of Capital Requirements (Details) - Bank - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Total Capital to Risk Weighted Assets, Actual, Amount | $ 68,259 | $ 65,713 |
Total Capital to Risk Weighted Assets, Actual, Ratio | 16.98% | 17.55% |
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 32,168 | $ 29,954 |
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio | 8.00% | 8.00% |
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 40,209 | $ 37,443 |
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 Capital Risk Weighted Assets, Actual, Amount | $ 63,216 | $ 60,998 |
Tier 1 Capital Risk Weighted Assets, Actual, Ratio | 15.72% | 16.29% |
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 24,126 | $ 22,466 |
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Ratio | 6.00% | 6.00% |
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 32,168 | $ 29,954 |
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Tier 1 Capital to Average Assets, Actual, Amount | $ 63,216 | $ 60,998 |
Tier 1 Capital to Average Assets, Actual, Ratio | 10.00% | 9.67% |
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount | $ 63,216 | $ 25,239 |
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Ratio | 4.00% | 4.00% |
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 31,609 | $ 31,549 |
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Amount | $ 63,216 | $ 60,998 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio | 15.72% | 16.29% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 18,094 | $ 16,849 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 26,136 | $ 24,338 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
5. INVESTMENT SECURITIES - Sche
5. INVESTMENT SECURITIES - Schedule of Securities Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Amortized Cost | $ 73,888 | |
Gross Unrealized Gains | 812 | $ 305 |
Gross Unrealized Losses | 139 | 801 |
Approximate Fair Value | 74,561 | 101,642 |
US Government Agencies | ||
Amortized Cost | 26,995 | 41,488 |
Gross Unrealized Gains | 314 | 244 |
Gross Unrealized Losses | 51 | 209 |
Approximate Fair Value | 27,258 | 41,523 |
Taxable Municipals | ||
Amortized Cost | 2,401 | 3,337 |
Gross Unrealized Gains | 73 | 5 |
Gross Unrealized Losses | 61 | |
Approximate Fair Value | 2,474 | 3,281 |
Corporate Bonds | ||
Amortized Cost | 3,100 | 1,944 |
Gross Unrealized Gains | 186 | 15 |
Gross Unrealized Losses | 20 | |
Approximate Fair Value | 3,286 | 1,939 |
Mortgage Backed Securities | ||
Amortized Cost | 41,392 | 55,369 |
Gross Unrealized Gains | 239 | 41 |
Gross Unrealized Losses | 88 | 511 |
Approximate Fair Value | $ 41,543 | $ 54,899 |
5. INVESTMENT SECURITIES - Sc32
5. INVESTMENT SECURITIES - Schedule of Fair Value and Gross Unrealized Losses on Investment Securities In A Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Less than 12 Months | $ 11,639 | $ 56,999 |
Unrealized Losses, Less than 12 Months | 87 | 512 |
Fair Value, 12 Months or More | 6,732 | 16,705 |
Unrealized Losses, 12 Months or More | 52 | 289 |
Fair Value, Total | 18,371 | 73,074 |
Unrealized Losses, Total | 139 | 801 |
US Government Agencies | ||
Fair Value, Less than 12 Months | 3,724 | 14,995 |
Unrealized Losses, Less than 12 Months | 42 | 81 |
Fair Value, 12 Months or More | 1,794 | 7,708 |
Unrealized Losses, 12 Months or More | 9 | 128 |
Fair Value, Total | 5,518 | 22,073 |
Unrealized Losses, Total | 51 | 209 |
Mortgage Backed Securities | ||
Fair Value, Less than 12 Months | 7,915 | 38,945 |
Unrealized Losses, Less than 12 Months | 45 | 354 |
Fair Value, 12 Months or More | 4,938 | 8,719 |
Unrealized Losses, 12 Months or More | 43 | 157 |
Fair Value, Total | 12,853 | 47,664 |
Unrealized Losses, Total | $ 88 | 511 |
Taxable Municipals | ||
Fair Value, Less than 12 Months | 2,136 | |
Unrealized Losses, Less than 12 Months | 57 | |
Fair Value, 12 Months or More | 278 | |
Unrealized Losses, 12 Months or More | 4 | |
Fair Value, Total | 2,414 | |
Unrealized Losses, Total | 61 | |
Corporate Bonds | ||
Fair Value, Less than 12 Months | 923 | |
Unrealized Losses, Less than 12 Months | 20 | |
Fair Value, Total | 923 | |
Unrealized Losses, Total | $ 20 |
5. INVESTMENT SECURITIES - Amor
5. INVESTMENT SECURITIES - Amortized Cost and Fair Value Of Investment Securities Contractual Maturity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Investment securities activity | ||
Due in one year or less, Amortized Cost | $ 1,221 | |
Due after one year through five years, Amortized Cost | 656 | |
Due after five years through ten years, Amortized Cost | 12,836 | |
Due after ten years, Amortized Cost | 59,175 | |
Amortized Cost, Total | 73,888 | |
Due in one year or less, Fair Value | 1,225 | |
Due after one year through five years, Fair Value | 657 | |
Due after five years through ten years, Fair Value | 13,107 | |
Due after ten years, Fair Value | 59,572 | |
Approximate Fair Value | $ 74,561 | $ 101,642 |
Due in one year or less, Weighted Average Yield | 0.91% | |
Due after one year through five years, Weighted Average Yield | 0.179% | |
Due after five years through ten years, Weighted Average Yield | 2.50% | |
Due after ten years, Weighted Average Yield | 1.80% | |
Weighted Average Yield, Total | 1.91% |
6. LOANS - Summary of Loans Rec
6. LOANS - Summary of Loans Receivable Outstanding (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Total loans and leases | $ 464,721 | $ 441,169 |
Real Estate [Member] | ||
Total loans and leases | 410,821 | 391,285 |
Commercial | ||
Total loans and leases | 26,246 | 21,469 |
Commercial | Real Estate [Member] | ||
Total loans and leases | 26,246 | 98,569 |
Construction and Land Development | Real Estate [Member] | ||
Total loans and leases | 247,956 | 14,672 |
Residential 1-4 Family | Real Estate [Member] | ||
Total loans and leases | 248,042 | 242,916 |
Multifamily | Real Estate [Member] | ||
Total loans and leases | 13,205 | 12,954 |
Farmland | Real Estate [Member] | ||
Total loans and leases | 23,828 | 22,174 |
Agriculture | ||
Total loans and leases | 4,459 | 3,793 |
Consumer Installment Loans | ||
Total loans and leases | 23,177 | $ 24,568 |
Other Loans | ||
Total loans and leases | 18 | |
Unallocated | ||
Total loans and leases |
6. LOANS - Summary of Loans R35
6. LOANS - Summary of Loans Receivable on Nonaccrual Status (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Total loans receivable on nonaccrual status | $ 13,448 | $ 14,847 |
Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 13,269 | 14,732 |
Commercial | ||
Total loans receivable on nonaccrual status | 3 | 65 |
Commercial | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 3,671 | 4,358 |
Construction and Land Development | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 354 | 436 |
Residential 1-4 Family | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 8,145 | 8,338 |
Multifamily | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 169 | 430 |
Farmland | Real Estate [Member] | ||
Total loans receivable on nonaccrual status | 930 | 1,170 |
Agriculture | ||
Total loans receivable on nonaccrual status | 83 | 9 |
Consumer Installment Loans | ||
Total loans receivable on nonaccrual status | 93 | $ 41 |
Other Loans | ||
Total loans receivable on nonaccrual status |
6. LOANS - Summary of Impaired
6. LOANS - Summary of Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Recorded Investment | $ 14,928 | $ 17,324 |
Unpaid Principal Balance | 16,718 | 19,850 |
Related Allowance | 719 | 983 |
Consumer Installment Loans | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 11 | |
Unpaid Principal Balance | 11 | |
Related Allowance | ||
Consumer Installment Loans | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 53 | 45 |
Unpaid Principal Balance | 53 | 45 |
Related Allowance | 20 | 2 |
Agriculture | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 19 | 36 |
Unpaid Principal Balance | 19 | 36 |
Related Allowance | ||
Agriculture | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 8 | 18 |
Unpaid Principal Balance | 8 | 18 |
Related Allowance | 8 | 18 |
Commercial Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Commercial Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 67 | 69 |
Unpaid Principal Balance | 67 | 69 |
Related Allowance | 19 | 24 |
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 3,533 | 4,212 |
Unpaid Principal Balance | 3,959 | 5,173 |
Related Allowance | ||
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 1,589 | 2,503 |
Unpaid Principal Balance | 1,680 | 2,849 |
Related Allowance | 172 | 288 |
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 7 | 10 |
Unpaid Principal Balance | 3,959 | 10 |
Related Allowance | ||
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 253 | 289 |
Unpaid Principal Balance | 477 | 499 |
Related Allowance | 119 | 155 |
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 3,590 | 3,037 |
Unpaid Principal Balance | 3,888 | 3,150 |
Related Allowance | ||
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 644 | 1,920 |
Unpaid Principal Balance | 652 | 2,121 |
Related Allowance | 119 | 168 |
Multifamily | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 305 | 430 |
Unpaid Principal Balance | 3,888 | 471 |
Related Allowance | ||
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Farmland | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 4,358 | 3,983 |
Unpaid Principal Balance | 5,050 | 4,620 |
Related Allowance | ||
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 502 | 761 |
Unpaid Principal Balance | 512 | 778 |
Related Allowance | $ 293 | $ 328 |
6. LOANS - Summary of Age Analy
6. LOANS - Summary of Age Analysis of Past Due Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Loans 30-59 Days Past Due | $ 7,892 | $ 5,696 |
Loans 60-89 Days Past Due | 3,604 | 1,594 |
Loans 90 or More Days Past Due | 4,148 | 6,104 |
Total Past Due Loans | 15,644 | 13,394 |
Current Loans | 443,969 | 427,775 |
Total loans and leases | 464,721 | 441,169 |
Accruing Loans 90 or More Days Past Due | ||
Real Estate [Member] | ||
Loans 30-59 Days Past Due | 7,644 | 5,559 |
Loans 60-89 Days Past Due | 3,540 | 1,592 |
Loans 90 or More Days Past Due | 3,863 | 6,013 |
Total Past Due Loans | 15,047 | 13,164 |
Current Loans | 390,604 | 378,121 |
Total loans and leases | 410,821 | 391,285 |
Accruing Loans 90 or More Days Past Due | ||
Real Estate [Member] | ||
Total loans and leases | 464 | |
Multifamily | Real Estate [Member] | ||
Total loans and leases | 13,205 | 12,954 |
Multifamily | Real Estate [Member] | ||
Total loans and leases | 13,205 | |
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Loans 30-59 Days Past Due | 446 | 47 |
Loans 60-89 Days Past Due | 67 | |
Loans 90 or More Days Past Due | 165 | 320 |
Total Past Due Loans | 678 | 367 |
Current Loans | 12,595 | 12,587 |
Total loans and leases | 13,273 | 12,954 |
Accruing Loans 90 or More Days Past Due | ||
Farmland | Real Estate [Member] | ||
Total loans and leases | 23,828 | 22,174 |
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Loans 30-59 Days Past Due | 365 | 363 |
Loans 60-89 Days Past Due | 164 | |
Loans 90 or More Days Past Due | 251 | |
Total Past Due Loans | 529 | 614 |
Current Loans | 22,945 | 21,560 |
Total loans and leases | 23,474 | 22,174 |
Accruing Loans 90 or More Days Past Due | ||
Commercial | ||
Loans 30-59 Days Past Due | 36 | 18 |
Loans 60-89 Days Past Due | 15 | 1 |
Loans 90 or More Days Past Due | 75 | 64 |
Total Past Due Loans | 126 | 83 |
Current Loans | 24,737 | 21,386 |
Total loans and leases | 26,246 | 21,469 |
Accruing Loans 90 or More Days Past Due | ||
Commercial | Real Estate [Member] | ||
Total loans and leases | 26,246 | 98,569 |
Agriculture | ||
Loans 30-59 Days Past Due | 29 | |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | 173 | |
Total Past Due Loans | 202 | |
Current Loans | 4,144 | 3,793 |
Total loans and leases | 4,459 | 3,793 |
Accruing Loans 90 or More Days Past Due | ||
Consumer Installment Loans | ||
Loans 30-59 Days Past Due | 161 | 113 |
Loans 60-89 Days Past Due | 49 | 1 |
Loans 90 or More Days Past Due | 37 | 27 |
Total Past Due Loans | 247 | 141 |
Current Loans | 24,477 | 24,427 |
Total loans and leases | 23,177 | 24,568 |
Accruing Loans 90 or More Days Past Due | ||
Other Loans | ||
Loans 30-59 Days Past Due | 22 | 6 |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | ||
Total Past Due Loans | 22 | 6 |
Current Loans | 7 | 48 |
Total loans and leases | 18 | |
Accruing Loans 90 or More Days Past Due | ||
Residential 1-4 Family | Real Estate [Member] | ||
Total loans and leases | 248,042 | 242,916 |
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Loans 30-59 Days Past Due | 6,199 | 4,694 |
Loans 60-89 Days Past Due | 2,054 | 1,487 |
Loans 90 or More Days Past Due | 2,075 | 2,891 |
Total Past Due Loans | 10,328 | 9,072 |
Current Loans | 235,756 | 233,844 |
Total loans and leases | 246,084 | 242,916 |
Accruing Loans 90 or More Days Past Due | ||
Construction and Land Development | Real Estate [Member] | ||
Total loans and leases | 247,956 | 14,672 |
Construction and Land Development | Real Estate [Member] | ||
Total loans and leases | 22,749 | |
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Loans 30-59 Days Past Due | 100 | 144 |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | 71 | 17 |
Total Past Due Loans | 171 | 161 |
Current Loans | 19,118 | 14,511 |
Total loans and leases | 19,289 | 14,672 |
Accruing Loans 90 or More Days Past Due | ||
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Loans 30-59 Days Past Due | 534 | 311 |
Loans 60-89 Days Past Due | 1,255 | 105 |
Loans 90 or More Days Past Due | 1,552 | 2,534 |
Total Past Due Loans | 3,341 | 2,950 |
Current Loans | 100,190 | 95,619 |
Total loans and leases | 103,531 | 98,569 |
Accruing Loans 90 or More Days Past Due | ||
Unallocated | ||
Total loans and leases |
6. LOANS - Summary of Risk Cate
6. LOANS - Summary of Risk Category of Loans Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Total | $ 464,721 | $ 441,169 |
Real Estate [Member] | ||
Total | 410,821 | 391,285 |
Pass | ||
Total | 427,801 | 404,566 |
Substandard | ||
Total | 16,814 | 19,680 |
Special Mention | ||
Total | 14,998 | 16,923 |
Real Estate [Member] | ||
Total | 464 | |
Real Estate [Member] | Pass | ||
Total | 374,971 | 355,626 |
Real Estate [Member] | Substandard | ||
Total | 16,388 | 19,460 |
Real Estate [Member] | Special Mention | ||
Total | 14,292 | 16,199 |
Consumer Installment Loans | ||
Total | 23,177 | 24,568 |
Consumer Installment Loans | Pass | ||
Total | 24,574 | 24,478 |
Consumer Installment Loans | Substandard | ||
Total | 150 | 90 |
Consumer Installment Loans | Special Mention | ||
Total | ||
Commercial | ||
Total | 26,246 | 21,469 |
Commercial | Real Estate [Member] | ||
Total | 26,246 | 98,569 |
Agriculture | ||
Total | 4,459 | 3,793 |
Agriculture | Pass | ||
Total | 4,157 | 3,767 |
Agriculture | Substandard | ||
Total | 189 | 26 |
Agriculture | Special Mention | ||
Total | ||
Other Loans | ||
Total | 18 | |
Other Loans | Pass | ||
Total | 29 | 54 |
Other Loans | Substandard | ||
Total | ||
Other Loans | Special Mention | ||
Total | ||
Unallocated | ||
Total | ||
Construction and Land Development | Real Estate [Member] | ||
Total | 247,956 | 14,672 |
Construction and Land Development | Real Estate [Member] | ||
Total | 22,749 | |
Construction and Land Development | Real Estate [Member] | Pass | ||
Total | 17,267 | 12,262 |
Construction and Land Development | Real Estate [Member] | Substandard | ||
Total | 424 | 436 |
Construction and Land Development | Real Estate [Member] | Special Mention | ||
Total | 1,598 | 1,974 |
Residential 1-4 Family | Real Estate [Member] | ||
Total | 248,042 | 242,916 |
Residential 1-4 Family | Real Estate [Member] | Pass | ||
Total | 235,604 | 229,182 |
Residential 1-4 Family | Real Estate [Member] | Substandard | ||
Total | 8,637 | 10,162 |
Residential 1-4 Family | Real Estate [Member] | Special Mention | ||
Total | 1,843 | 3,572 |
Multifamily | Real Estate [Member] | ||
Total | 13,205 | 12,954 |
Multifamily | Real Estate [Member] | ||
Total | 13,205 | |
Multifamily | Real Estate [Member] | Pass | ||
Total | 12,730 | 12,264 |
Multifamily | Real Estate [Member] | Substandard | ||
Total | 543 | 503 |
Multifamily | Real Estate [Member] | Special Mention | ||
Total | 187 | |
Commercial Portfolio Segment [Member] | Pass | ||
Total | 24,070 | 20,641 |
Commercial Portfolio Segment [Member] | Substandard | ||
Total | 87 | 104 |
Commercial Portfolio Segment [Member] | Special Mention | ||
Total | 706 | 724 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Pass | ||
Total | 91,667 | 85,255 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Substandard | ||
Total | 4,486 | 5,771 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Special Mention | ||
Total | 7,378 | 7,543 |
Farmland | Real Estate [Member] | ||
Total | 23,828 | 22,174 |
Farmland | Real Estate [Member] | Pass | ||
Total | 17,703 | 16,663 |
Farmland | Real Estate [Member] | Substandard | ||
Total | 2,298 | 2,588 |
Farmland | Real Estate [Member] | Special Mention | ||
Total | $ 3,473 | $ 2,923 |
7. ALLOWANCE FOR LOAN LOSSES -
7. ALLOWANCE FOR LOAN LOSSES - Summary of Activity in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Balance, beginning of year | $ 7,493 | |
Charge Offs | (1,130) | $ (2,360) |
Recoveries | 495 | 2,131 |
Advances | ||
Provision for loan losses | (500) | (2,200) |
Balance, End of period | 6,358 | 7,493 |
Real Estate [Member] | ||
Balance, beginning of year | 6,060 | 8,256 |
Charge Offs | (1,043) | (2,167) |
Recoveries | 421 | 675 |
Advances | ||
Provision for loan losses | (39) | (704) |
Balance, End of period | 6,358 | 6,060 |
Commercial Real Estate [Member] | ||
Balance, beginning of year | 266 | 457 |
Charge Offs | (65) | (92) |
Recoveries | 52 | 1,412 |
Advances | ||
Provision for loan losses | (46) | (1,511) |
Balance, End of period | 266 | |
Commercial Real Estate [Member] | Real Estate [Member] | ||
Balance, beginning of year | 2,384 | 4,418 |
Charge Offs | (417) | (724) |
Recoveries | 217 | 147 |
Advances | ||
Provision for loan losses | (238) | (1,457) |
Balance, End of period | 2,384 | |
Construction and Land Development | Real Estate [Member] | ||
Balance, beginning of year | 332 | 199 |
Charge Offs | (5) | (226) |
Recoveries | 24 | 215 |
Advances | ||
Provision for loan losses | (5) | 144 |
Balance, End of period | 346 | 332 |
Residential 1-4 Family | Real Estate [Member] | ||
Balance, beginning of year | 2,437 | 2,572 |
Charge Offs | (601) | (743) |
Recoveries | 78 | 93 |
Advances | ||
Provision for loan losses | 329 | 515 |
Balance, End of period | 2,437 | |
Multifamily | Real Estate [Member] | ||
Balance, beginning of year | 232 | 154 |
Charge Offs | (18) | (384) |
Recoveries | 6 | |
Advances | ||
Provision for loan losses | 19 | 456 |
Balance, End of period | 233 | 232 |
Farmland | Real Estate [Member] | ||
Balance, beginning of year | 675 | 913 |
Charge Offs | (2) | (90) |
Recoveries | 102 | 214 |
Advances | ||
Provision for loan losses | (144) | (362) |
Balance, End of period | 675 | |
Agriculture | ||
Balance, beginning of year | 124 | 125 |
Charge Offs | ||
Recoveries | 6 | 3 |
Advances | ||
Provision for loan losses | (87) | (4) |
Balance, End of period | 43 | 124 |
Consumer Installment Loans | ||
Balance, beginning of year | 128 | 171 |
Charge Offs | (22) | (101) |
Recoveries | 16 | 41 |
Advances | ||
Provision for loan losses | 9 | 17 |
Balance, End of period | 131 | 128 |
Other Loans | ||
Balance, beginning of year | 1 | |
Charge Offs | ||
Recoveries | ||
Advances | ||
Provision for loan losses | (1) | |
Balance, End of period | ||
Unallocated | ||
Balance, beginning of year | 912 | |
Charge Offs | ||
Recoveries | ||
Advances | ||
Provision for loan losses | (336) | 2 |
Balance, End of period | 578 | |
Commercial | ||
Balance, beginning of year | 266 | |
Balance, End of period | $ 207 | $ 266 |
7. ALLOWANCE FOR LOAN LOSSES 40
7. ALLOWANCE FOR LOAN LOSSES - Schedule of Allocation of Portion of Allowance (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for Loan Losses, Individually Evaluated for Impairment | $ 983 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 6,510 | ||
Allowance for Loan Losses, Total | $ 6,358 | 7,493 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 17,324 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 423,845 | ||
Recorded Investment in Loans, Total | 464,721 | 441,169 | |
Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 672 | 939 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 4,727 | 5,121 | |
Allowance for Loan Losses, Total | 5,399 | 6,060 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 14,781 | 17,145 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 396,040 | 374,140 | |
Recorded Investment in Loans, Total | 410,821 | 391,285 | |
Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 719 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 5,639 | ||
Allowance for Loan Losses, Total | 6,358 | 6,060 | $ 8,256 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 14,928 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 449,793 | ||
Recorded Investment in Loans, Total | 464 | ||
Commercial | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 19 | 24 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 188 | 242 | |
Allowance for Loan Losses, Total | 207 | 266 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 67 | 69 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 26,179 | 21,400 | |
Recorded Investment in Loans, Total | 26,246 | 21,469 | |
Commercial | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 172 | 288 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 1,774 | 2,096 | |
Allowance for Loan Losses, Total | 1,946 | 2,384 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 5,122 | 6,715 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 97,875 | 91,854 | |
Recorded Investment in Loans, Total | 26,246 | 98,569 | |
Construction and Land Development | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 155 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 177 | ||
Allowance for Loan Losses, Total | 332 | ||
Recorded Investment in Loans, Individually Evaluated for Impairment | 299 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 14,373 | ||
Recorded Investment in Loans, Total | 247,956 | 14,672 | |
Construction and Land Development | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 119 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 227 | ||
Allowance for Loan Losses, Total | 346 | 332 | 199 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 260 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 22,489 | ||
Recorded Investment in Loans, Total | 22,749 | ||
Residential 1-4 Family | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 88 | 168 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 2,155 | 2,269 | |
Allowance for Loan Losses, Total | 2,243 | 2,437 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 4,234 | 4,957 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 243,808 | 237,959 | |
Recorded Investment in Loans, Total | 248,042 | 242,916 | |
Residential 1-4 Family | Real Estate [Member] | |||
Allowance for Loan Losses, Total | 2,437 | 2,572 | |
Multifamily | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | |||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 232 | ||
Allowance for Loan Losses, Total | 232 | ||
Recorded Investment in Loans, Individually Evaluated for Impairment | 430 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 12,524 | ||
Recorded Investment in Loans, Total | 13,205 | 12,954 | |
Multifamily | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | |||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 233 | ||
Allowance for Loan Losses, Total | 233 | 232 | 154 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 305 | ||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 12,900 | ||
Recorded Investment in Loans, Total | 13,205 | ||
Farmland | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 293 | 328 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 338 | 347 | |
Allowance for Loan Losses, Total | 631 | 675 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 4,860 | 4,744 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 18,968 | 17,430 | |
Recorded Investment in Loans, Total | 23,828 | 22,174 | |
Farmland | Real Estate [Member] | |||
Allowance for Loan Losses, Total | 675 | 913 | |
Agriculture | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 8 | 18 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 35 | 106 | |
Allowance for Loan Losses, Total | 43 | 124 | 125 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 27 | 54 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 4,432 | 3,739 | |
Recorded Investment in Loans, Total | 4,459 | 3,793 | |
Consumer Installment Loans | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 20 | 2 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 111 | 126 | |
Allowance for Loan Losses, Total | 131 | 128 | 171 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 53 | 56 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 23,124 | 24,512 | |
Recorded Investment in Loans, Total | 23,177 | 24,568 | |
Other Loans | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | |||
Allowance for Loan Losses, Collectively Evaluated for Impairment | |||
Allowance for Loan Losses, Total | 1 | ||
Recorded Investment in Loans, Individually Evaluated for Impairment | |||
Recorded Investment in Loans, Collectively Evaluated for Impairment | 18 | ||
Recorded Investment in Loans, Total | 18 | ||
Unallocated | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | |||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 578 | ||
Allowance for Loan Losses, Total | 578 | 912 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | |||
Recorded Investment in Loans, Collectively Evaluated for Impairment | |||
Recorded Investment in Loans, Total | |||
Commercial Real Estate [Member] | |||
Allowance for Loan Losses, Total | 266 | 457 | |
Commercial Real Estate [Member] | Real Estate [Member] | |||
Allowance for Loan Losses, Total | $ 2,384 | $ 4,418 |
8. TROUBLED DEBT RESTRUCTURIN41
8. TROUBLED DEBT RESTRUCTURINGS - Schedule Of Loans Modified As Troubled Debt Restructurings (Details) - Real Estate [Member] $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016USD ($)loans | Sep. 30, 2015USD ($)loans | Dec. 31, 2015USD ($)loans | |
# of Loans | loans | 1 | 1 | |
Pre-Mod. Recorded Investment | $ 632 | $ 551 | |
Post-Mod. Recorded Investment | $ 630 | $ 314 | |
Farmland | |||
# of Loans | loans | 1 | ||
Pre-Mod. Recorded Investment | $ 291 | ||
Post-Mod. Recorded Investment | $ 291 | ||
Commercial Real Estate [Member] | |||
# of Loans | loans | 1 | ||
Pre-Mod. Recorded Investment | $ 341 | ||
Post-Mod. Recorded Investment | $ 339 | ||
Construction and Land Development | |||
# of Loans | loans | 1 | ||
Pre-Mod. Recorded Investment | $ 551 | ||
Post-Mod. Recorded Investment | $ 314 |
8. TROUBLED DEBT RESTRUCTURIN42
8. TROUBLED DEBT RESTRUCTURINGS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2016 | |
Notes to Financial Statements | ||
Total TDRs | $ 9,500 | $ 9,400 |
Period loan is considered to be in default, days | 90 days |
9. OTHER REAL ESTATE OWNED - Ot
9. OTHER REAL ESTATE OWNED - Other Real Estate (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Real Estate [Abstract] | ||
Balance, beginning of year | $ 12,398 | $ 15,049 |
Additions | 3,851 | 3,277 |
Purchases of other real estate owned | 12 | |
Transfers of other real estate owned | (125) | |
Donation of other real estate owned | 33 | |
Proceeds from sales | (2,379) | (1,831) |
Loans made to finance sales | (676) | (878) |
Proceeds from insurance claims | (101) | |
Adjustment of carrying value | (165) | (3,246) |
Deferred gain from sales | 50 | |
Gain (loss) from sales | 290 | 99 |
Balance, end of year | $ 13,194 | $ 12,398 |
10. EARNINGS PER SHARE (Schedul
10. EARNINGS PER SHARE (Schedule Of Anti-Dilutive Income Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Per Share | ||||
Net income | $ 346 | $ 2,293 | $ 1,926 | $ 3,377 |
Weighted average shares outstanding | 23,354,111 | 22,878,654 | 23,354,092 | 22,878,654 |
Dilutive shares for stock options and warrants | ||||
Weighted average dilutive shares outstanding | 23,354,111 | 22,878,654 | 23,354,092 | 22,878,654 |
Basic income per share | $ 0.01 | $ 0.1 | $ 0.08 | $ 0.15 |
Diluted income per share | $ 0.01 | $ 0.1 | $ 0.08 | $ 0.15 |
12. FAIR VALUES - Summary of As
12. FAIR VALUES - Summary of Assets And Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Inputs, Level 3 [Member] | ||
Other real estate owned | $ 14,134 | $ 12,398 |
Impaired Loans | 29,078 | 28,739 |
Fair Value, Inputs, Level 2 [Member] | ||
Available for sale investments | 76,626 | |
Impaired Loans | 101,642 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities | ||
Available for sale investments | 42,486 | 54,899 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member] | ||
Available for sale investments | 3,232 | 1,939 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | TaxableMunicipalsMember | ||
Available for sale investments | 2,483 | 3,281 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Agencies | ||
Available for sale investments | 28,425 | 41,523 |
Other Loans | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | ||
Impaired Loans | ||
Agriculture | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | ||
Impaired Loans | 26 | 36 |
Farmland | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | ||
Impaired Loans | 4,398 | 4,416 |
Multifamily | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | ||
Impaired Loans | 443 | 430 |
Commercial Real Estate [Member] | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | ||
Impaired Loans | 45 | |
Commercial Real Estate [Member] | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | ||
Impaired Loans | 5,267 | 6,427 |
Residential 1-4 Family | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | ||
Impaired Loans | 4,574 | 4,789 |
Construction and Land Development | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | ||
Impaired Loans | 141 | 144 |
Consumer Installment Loans | Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | ||
Impaired Loans | $ 50 | $ 54 |
12. FAIR VALUES - Schedule of S
12. FAIR VALUES - Schedule of Significant Unobservable Inputs In Level 3 Assets (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Other Real Estate Owned | |
Fair Value at June 30, 2016 | $ 13,194 |
Valuation Technique | Appraised Value/Comparable Sales/Other Estimates from Independent Sources |
Significant Unobservable Inputs | Discounts to reflect current market conditions and estimated costs to sell |
Other Real Estate Owned | Minimum [Member] | |
Significant Unobservable Input Value | 0.00% |
Other Real Estate Owned | Maximum [Member] | |
Significant Unobservable Input Value | 18.00% |
Impaired Loans | |
Fair Value at June 30, 2016 | $ 14,209 |
Valuation Technique | Appraised Value/Discounted Cash Flows/Market Value of Note |
Significant Unobservable Inputs | Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell |
Impaired Loans | Minimum [Member] | |
Significant Unobservable Input Value | 0.00% |
Impaired Loans | Maximum [Member] | |
Significant Unobservable Input Value | 18.00% |
12. FAIR VALUES - Estimated Fai
12. FAIR VALUES - Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Net Loans | $ 458,363 | $ 433,676 |
Time deposits | 247,956 | 256,978 |
FHLB advances | 9,058 | |
Fair Value, Measurements, Recurring [Member] | ||
Net Loans | 461,025 | 438,589 |
Time deposits | 247,529 | 256,797 |
FHLB advances | 9,110 | 2,958 |
Fair Value, Inputs, Level 1 [Member] | ||
Net Loans | ||
Time deposits | ||
FHLB advances | ||
Fair Value, Inputs, Level 2 [Member] | ||
Net Loans | 446,816 | 422,248 |
Time deposits | 247,529 | 256,797 |
FHLB advances | 9,110 | 2,958 |
Fair Value, Inputs, Level 3 [Member] | ||
Net Loans | 14,209 | 16,341 |
Time deposits | ||
FHLB advances | ||
Fair Value, Estimate Not Practicable, Carrying (Reported) Amount [Member] | ||
Net Loans | 433,676 | |
Time deposits | 256,978 | |
FHLB advances | $ 2,958 |