Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 11, 2017 | |
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 | Jun. 30, 2017 | |
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 | 23,356,299 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
INTEREST AND DIVIDEND INCOME | ||||
Loans including fees | $ 6,115 | $ 5,613 | $ 11,779 | $ 11,178 |
Interest-earning deposits with banks | 49 | 23 | 92 | 44 |
Investments | 381 | 363 | 731 | 827 |
Dividends on equity securities (restricted) | 34 | 32 | 66 | 64 |
Total Interest and Dividend Income | 6,579 | 6,031 | 12,668 | 12,113 |
Deposits | ||||
Demand | 12 | 13 | 25 | 24 |
Savings | 46 | 37 | 93 | 78 |
Time deposits below $100,000 | 335 | 270 | 624 | 535 |
Time deposits above $100,000 | 214 | 158 | 403 | 312 |
FHLB advances | 39 | 28 | 84 | 64 |
Federal funds purchased | 2 | |||
Trust Preferred Securities | 142 | 123 | 283 | 245 |
Total Interest Expense | 788 | 629 | 1,512 | 1,260 |
NET INTEREST INCOME | 5,791 | 5,402 | 11,156 | 10,853 |
PROVISION FOR LOAN LOSSES | (500) | (500) | ||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 5,791 | 5,902 | 11,156 | 11,353 |
NONINTEREST INCOME | ||||
Gain on sale and leaseback transactions | 2,619 | 2,619 | ||
Service charges | 888 | 584 | 1,721 | 1,072 |
Fees, commissions and other income | 820 | 858 | 1,622 | 1,663 |
Insurance and investment fees | 54 | 143 | 106 | 301 |
Net realized gains on sale of investment securities | 135 | 240 | ||
Life insurance investment income | 28 | 33 | 55 | 63 |
Total Noninterest Income | 4,409 | 1,753 | 6,123 | 3,339 |
NONINTEREST EXPENSES | ||||
Salaries and employee benefits | 3,341 | 3,339 | 6,722 | 6,549 |
Occupancy and equipment expense | 1,134 | 1,068 | 2,261 | 1,921 |
Lease expense - operating leases | 38 | 38 | ||
Advertising and public relations | 81 | 129 | 174 | 233 |
Data processing and telecommunications | 670 | 576 | 1,223 | 1,157 |
FDIC insurance premiums | 110 | 136 | 212 | 270 |
Other real estate owned and repossessed vehicles, net | 753 | 89 | 1,053 | 252 |
Other operating expenses | 1,496 | 1,439 | 2,918 | 2,731 |
Total Noninterest Expenses | 7,623 | 6,776 | 14,601 | 13,113 |
INCOME BEFORE INCOME TAXES | 2,577 | 879 | 2,678 | 1,579 |
INCOME TAX BENEFIT | (3) | (14) | (1) | |
NET INCOME | $ 2,577 | $ 882 | $ 2,692 | $ 1,580 |
Income Per Share | ||||
Basic | $ 0.11 | $ 0.04 | $ 0.12 | $ 0.07 |
Fully Diluted | $ 0.11 | $ 0.04 | $ 0.12 | $ 0.07 |
Average Weighted Shares of Common Stock | ||||
Basic | 23,355,503 | 23,354,082 | 23,355,198 | 23,354,082 |
Fully Diluted | 23,355,503 | 23,354,082 | 23,355,198 | 23,354,082 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Consolidated Statements Of Comprehensive Income Loss | ||||
NET INCOME | $ 2,577 | $ 882 | $ 2,692 | $ 1,580 |
Investment Securities Activity | ||||
Unrealized gains arising during the period | 518 | 694 | 607 | 1,479 |
Tax related to unrealized gains | (176) | (236) | (206) | (503) |
Reclassification of realized gains during the period | (135) | (240) | ||
Tax related to realized gains | 46 | 82 | ||
TOTAL OTHER COMPREHENSIVE INCOME | 342 | 369 | 401 | 818 |
TOTAL COMPREHENSIVE INCOME | $ 2,919 | $ 1,251 | $ 3,093 | $ 2,398 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 18,637 | $ 18,500 |
Interest-bearing deposits with banks | 18,327 | 16,816 |
Federal funds sold | 16 | 132 |
Total Cash and Cash Equivalents | 36,980 | 35,448 |
Investment securities available-for-sale | 75,795 | 70,011 |
Loans receivable | 488,764 | 468,629 |
Allowance for loan losses | (6,307) | (6,072) |
Net Loans | 482,457 | 462,557 |
Bank premises and equipment, net | 26,666 | 29,985 |
Equity securities (restricted) | 2,570 | 2,802 |
Other real estate owned | 7,248 | 10,655 |
Accrued interest receivable | 1,780 | 1,848 |
Life insurance investments | 12,329 | 12,274 |
Deferred taxes, net | 5,079 | 5,285 |
Right-of-use assets - operating leases | 5,321 | |
Other assets | 3,536 | 3,470 |
Total Assets | 659,761 | 634,335 |
Demand deposits: | ||
Noninterest bearing | 156,802 | 151,914 |
Interest-bearing | 32,537 | 40,213 |
Savings deposits | 119,411 | 114,492 |
Time deposits | 267,596 | 247,819 |
Total Deposits | 576,346 | 554,438 |
Federal Home Loan Bank advances | 8,158 | 13,758 |
Lease liabilities - operating leases | 5,321 | |
Accrued interest payable | 359 | 331 |
Accrued expenses and other liabilities | 3,068 | 2,395 |
Trust preferred securities | 16,496 | 16,496 |
Total Liabilities | 609,748 | 587,418 |
Commitments and contingencies | ||
STOCKHOLDERS' EQUITY | ||
Common stock - $2.00 par value; 50,000,000 shares authorized; 23,356,299 and 23,354,457 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively | 46,713 | 46,709 |
Common stock warrants | 762 | 764 |
Additional paid-in-capital | 13,966 | 13,965 |
Retained deficit | (11,373) | (14,065) |
Accumulated other comprehensive loss | (55) | (456) |
Total Stockholders' Equity | 50,013 | 46,917 |
Total Liabilities and Stockholders' Equity | $ 659,761 | $ 634,335 |
CONSOLIDATED BALANCE SHEETS (U5
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 2 | $ 2 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock, issued | 23,356,299 | 23,354,457 |
Common stock, outstanding | 23,356,299 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Common Stock Warrants [Member] | Additional Paid-in Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at beginning at Dec. 31, 2015 | $ 46,708 | $ 764 | $ 13,965 | $ (15,023) | $ (327) | $ 46,087 |
Balance at beginning (in shares) at Dec. 31, 2015 | 23,354 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,580 | 1,580 | ||||
Other comprehensive income, net of tax | 818 | 818 | ||||
Balance at end at Jun. 30, 2016 | $ 46,708 | 764 | 13,965 | (13,443) | 491 | 48,485 |
Balance at end (in shares) at Jun. 30, 2016 | 23,354 | |||||
Balance at beginning at Dec. 31, 2016 | $ 46,709 | 764 | 13,965 | (14,065) | (456) | 46,917 |
Balance at beginning (in shares) at Dec. 31, 2016 | 23,354 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 2,692 | 2,692 | ||||
Exercise of common stock warrants | $ 4 | (2) | 1 | 3 | ||
Exercise of common stock warrants (in shares) | 2 | |||||
Other comprehensive income, net of tax | 401 | 401 | ||||
Balance at end at Jun. 30, 2017 | $ 46,713 | $ 762 | $ 13,966 | $ (11,373) | $ (55) | $ 50,013 |
Balance at end (in shares) at Jun. 30, 2017 | 23,356 | 23,356,299 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 2,692 | $ 1,580 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,279 | 1,175 |
Provision for loan losses | (500) | |
Income on life insurance | (55) | (63) |
Gain on sale of securities available-for-sale | (240) | |
Gain on sale and leaseback transactions | (2,619) | |
Gain on sale of premises and equipment | (2) | |
(Gain) loss on sale of foreclosed assets | 4 | (185) |
Adjustment of carrying value of foreclosed real estate | 590 | (28) |
Accretion of bond premiums/discounts | 398 | 482 |
Deferred tax benefit | (70) | |
Net change in: | ||
Interest receivable | 68 | (70) |
Other assets | (66) | (1,476) |
Accrued interest payable | 28 | 4 |
Accrued expenses and other liabilities | 629 | 546 |
Net Cash Provided by Operating Activities | 2,946 | 1,155 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net increase in loans | (15,944) | (21,383) |
Purchase of securities available-for-sale | (13,032) | (7,631) |
Proceeds from sales and maturities of securities available-for-sale | 7,457 | 33,644 |
Net sale (purchase) of equity securities (restricted) | 232 | (172) |
Payments for the purchase of premises and equipment | (1,446) | (4,130) |
Proceeds from sales and leaseback transactions | 1,042 | |
Proceeds from sale of premises and equipment | 5 | |
Proceeds from sales of other real estate owned | 3,961 | 947 |
Net Cash Provided by (Used In) Investing Activities | (17,725) | 1,275 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Exercise of common stock warrants | 3 | |
Net increase (decrease) in Federal Home Loan Bank advances | (5,600) | 6,400 |
Net change in: | ||
Demand deposits | (2,788) | 11,484 |
Savings deposits | 4,919 | (9,039) |
Time deposits | 19,777 | (5,380) |
Net Cash Provided by Financing Activities | 16,311 | 3,465 |
Net increase in cash and cash equivalents | 1,532 | 5,895 |
Cash and Cash Equivalents, Beginning of Period | 35,448 | 26,338 |
Cash and Cash Equivalents, End of Period | 36,980 | 32,233 |
Supplemental Disclosure of Cash Paid During the Period for: | ||
Interest | 1,484 | 1,256 |
Taxes | 70 | |
Supplemental Disclosure of Non Cash Transactions: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | 5,321 | |
Loan made to finance sale of premises and equipment | 4,935 | |
Other real estate acquired in settlement of foreclosed loans | 2,071 | 3,098 |
Loans made to finance sale of foreclosed real estate | 1,092 | 503 |
Transfer of premises and equipment to other real estate | 125 | |
Transfer of other real estate to premises and equipment | 125 | |
Change in unrealized gains (losses) on securities available-for-sale | $ 607 | $ 1,239 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 its 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 are now serviced by CSE and the Bank refers future insurance needs of its bank customers to CSE. On June 7, 2017, NPB Insurance Services, Inc. purchased a 39% membership interest in Lonesome Pine Title Agency, LLC, which provides title insurance. Another member of the agency is a related party to the Company. |
ACCOUNTING PRINCIPLES
ACCOUNTING PRINCIPLES | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
ACCOUNTING PRINCIPLES | 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 Company’s financial position at June 30, 2017 and December 31, 2016, and the results of operations for the three and six month periods ended June 30, 2017 and 2016. The notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the three and six month periods ended June 30, 2017 and 2016 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2017 | |
Income Per Share | |
EARNINGS PER SHARE | NOTE 3 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 related to outstanding common stock warrants are determined by the Treasury method. For the three and six months ended June 30, 2017 and 2016, potential common shares of 880,136 and 882,353, 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 For the three months For the six months 2017 2016 2017 2016 Net income $ 2,577 $ 882 $ 2,692 $ 1,580 Weighted average shares outstanding 23,355,503 23,354,082 23,355,198 23,354,082 Dilutive shares for stock options and warrants — — — — Weighted average dilutive shares outstanding 23,355,503 23,354,082 23,355,198 23,354,082 Basic and diluted income per share $ 0.11 $ 0.04 $ 0.12 $ 0.07 |
CAPITAL
CAPITAL | 6 Months Ended |
Jun. 30, 2017 | |
Capital [Abstract] | |
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 Bank’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 June 30, 2017, 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 Board’s Small Bank Holding Company Policy Statement issued in February 2015, and is no longer obligated to report consolidated regulatory capital. The Bank’s actual capital amounts and ratios are presented in the following table as of June 30, 2017 and December 31, 2016, 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 June 30, 2017: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 69,284 16.22 % $ 34,162 8.0 % $ 42,702 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,934 14.97 % 25,621 6.0 % 34,162 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,934 9.86 % 25,929 4.0 % 32,411 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,934 14.97 % 19,216 4.5 % 27,756 6.5 % December 31, 2016: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 67,549 16.64 % $ 32,476 8.0 % $ 40,595 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,462 15.39 % 24,357 6.0 % 32,476 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 62,462 9.93 % 25,149 4.0 % 31,436 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,462 15.39 % 18,268 4.5 % 26,386 6.5 % As of June 30, 2017, 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 Bank’s category. Under Basel III Capital requirements, a capital conservation buffer of 0.625% became effective beginning on January 1, 2016. The capital conservation buffer is 1.25% as of June 30, 2017 and the Bank met that requirement with a buffer of 8.22%. The capital conservation buffer will be gradually increased through January 1, 2019 to 2.50%. 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. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 6 Months Ended |
Jun. 30, 2017 | |
Investment Securities Activity | |
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 June 30, 2017 U.S. Government Agencies $ 26,789 $ 182 $ 126 $ 26,845 Taxable municipals 2,325 14 24 2,315 Corporate bonds 4,860 230 — 5,090 Mortgage backed securities 41,905 43 403 41,545 Total Securities AFS $ 75,879 $ 469 $ 553 $ 75,795 December 31, 2016 U.S. Government Agencies $ 24,821 $ 80 $ 269 $ 24,632 Taxable municipals 2,340 2 50 2,292 Corporate bonds 3,600 149 — 3,749 Mortgage backed securities 39,941 25 628 39,338 Total Securities AFS $ 70,702 $ 256 $ 947 $ 70,011 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 June 30, 2017 and December 31, 2016. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Fair Unrealized Fair Unrealized June 30, 2017 U.S. Government Agencies $ 9,829 $ 117 $ 1,496 $ 9 $ 11,325 $ 126 Taxable municipals 779 24 — — 779 24 Corporate bonds — — — — — — Mtg. backed securities 26,676 278 7,031 125 33,707 403 Total Securities AFS $ 37,284 $ 419 $ 8,527 $ 134 $ 45,811 $ 553 December 31, 2016 U.S. Government Agencies $ 12,081 $ 250 $ 2,449 $ 19 $ 14,530 $ 269 Taxable municipals 1,561 50 — — 1,561 50 Corporate bonds 500 — — — 500 — Mtg. backed securities 28,680 543 4,655 85 33,335 628 Total Securities AFS $ 42,822 $ 843 $ 7,104 $ 104 $ 49,926 $ 947 At June 30, 2017, the available-for-sale portfolio included 99 investments for which the fair market value was less than amortized cost. At December 31, 2016, the available-for-sale portfolio included 107 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, and 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 $10.7 million and $11.3 million at June 30, 2017 and December 31, 2016, respectively, were pledged as collateral to secure public deposits and for other purposes required by law. There were no sales of investment securities during the six months ended June 30, 2017. Gross proceeds on the sale of investment securities were $24.8 million for the six months ended June 30, 2016. Gross realized gains and losses pertaining to the sale of investment securities available for sale are detailed as follows: For the three months For the six months (Dollars are in thousands) 2017 2016 2017 2016 Gross gains realized $ — $ 156 $ — $ 275 Gross losses realized — (21 ) — (35 ) Net realized gains $ — $ 135 $ — $ 240 The amortized cost and fair value of investment securities at June 30, 2017, 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 $ — $ — — % Due after one year through five years 4,101 4,099 2.00 % Due after five years through ten years 16,608 16,788 2.86 % Due after ten years 55,170 54,908 2.09 % Total $ 75,879 $ 75,795 2.25 % 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 $2.8 million as of June 30, 2017 and December 31, 2016, respectively. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
LOANS | NOTE 6 LOANS: Loans receivable outstanding are summarized as follows: (Dollars are in thousands) June 30, 2017 December 31, 2016 Real estate secured: Commercial $ 109,467 $ 103,331 Construction and land development 29,081 25,755 Residential 1-4 family 253,068 249,700 Multifamily 14,587 12,582 Farmland 24,303 24,948 Total real estate loans 430,506 416,316 Commercial 31,698 26,955 Agriculture 3,683 3,164 Consumer installment loans 22,173 22,188 All other loans 704 6 Total loans $ 488,764 $ 468,629 Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) June 30, 2017 December 31, 2016 Real estate secured: Commercial $ 2,084 $ 3,403 Construction and land development 289 319 Residential 1-4 family 7,200 8,355 Multifamily 158 166 Farmland 838 1,003 Total real estate loans 10,569 13,246 Agriculture 3 83 Consumer installment loans 36 76 Total loans receivable on nonaccrual status $ 10,608 $ 13,405 Total interest income not recognized on nonaccrual loans for the six months ended June 30, 2017 and 2016 was $280 thousand and $158 thousand, respectively. The following table presents information concerning the Company’s investment in loans considered impaired as of June 30, 2017 and December 31, 2016: As of June 30, 2017 (Dollars are in thousands) Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial $ 3,017 $ 3,108 $ — Construction and land development — — — Residential 1-4 family 3,852 4,152 — Multifamily 289 330 — Farmland 884 1,261 — Commercial — — — Agriculture 18 18 — Consumer installment loans 9 9 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 709 800 99 Construction and land development 215 454 81 Residential 1-4 family 569 596 108 Multifamily 1,331 1,399 216 Farmland 902 918 328 Commercial 497 497 182 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 12,292 $ 13,542 $ 1,014 As of December 31, 2016 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 3,636 $ 4,055 $ — Construction and land development 5 5 — Residential 1-4 family 3,861 4,182 — Multifamily 301 342 — Farmland 3,895 4,601 — Commercial — — — Agriculture 19 19 — Consumer installment loans 26 43 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 1,191 1,270 65 Construction and land development 240 469 106 Residential 1-4 family 555 565 56 Multifamily — — — Farmland 591 602 299 Commercial 67 67 18 Agriculture 5 5 5 Consumer installment loans 9 9 3 All other loans — — — Total $ 14,401 $ 16,234 $ 552 The following table presents information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Six Months Ended June 30, 2017 June 30, 2016 (Dollars are in thousands) Average Interest Average Interest With no related allowance recorded: Real estate secured: Commercial $ 3,136 $ 64 $ 4,451 $ 73 Construction and land development 3 — 116 — Residential 1-4 family 3,831 102 3,758 103 Multifamily 440 11 282 11 Farmland 2,884 26 4,162 102 Commercial — — — — Agriculture 19 1 33 2 Consumer installment loans 15 — 32 2 All other loans — — — — With an allowance recorded: Real estate secured: Commercial 837 6 1,522 — Construction and land development 228 — 277 — Residential 1-4 family 657 9 1,037 11 Multifamily 444 32 133 4 Farmland 694 16 595 12 Commercial 210 16 72 2 Agriculture 2 — 139 (2 ) Consumer installment loans 3 — 22 — All other loans — — — — Total $ 13,403 $ 283 $ 16,631 $ 320 Three Months Ended June 30, 2017 June 30, 2016 (Dollars are in thousands) Average Interest Average Interest With no related allowance recorded: Real estate secured: Commercial $ 2,886 $ 39 $ 4,571 $ 38 Construction and land development 2 — 169 1 Residential 1-4 family 3,817 53 4,118 52 Multifamily 510 (1 ) 208 9 Farmland 2,378 141 4,252 51 Commercial — — — — Agriculture 19 1 31 1 Consumer installment loans 9 — 43 1 All other loans — — — — With an allowance recorded: Real estate secured: Commercial 660 4 1,031 — Construction and land development 222 — 271 — Residential 1-4 family 708 — 595 6 Multifamily 666 32 199 2 Farmland 746 11 512 6 Commercial 282 16 73 1 Agriculture 1 — 200 — Consumer installment loans — — 11 — All other loans — — — — Total $ 12,906 $ 296 $ 16,284 $ 168 An age analysis of past due loans receivable is below. At June 30, 2017 and December 31, 2016, there were no loans over 90 days past due that were accruing. As of June 30, 2017 (Dollars are in thousands) Loans Loans Loans Total Current Total Real estate secured: Commercial $ 3,251 $ 245 $ — $ 3,496 $ 105,971 $ 109,467 Construction and land development 367 — 43 410 28,671 29,081 Residential 1-4 family 2,335 1,151 1,483 4,969 248,099 253,068 Multifamily 98 — — 98 14,489 14,587 Farmland 288 256 308 852 23,451 24,303 Total real estate loans 6,339 1,652 1,834 9,825 420,681 430,506 Commercial 4 — — 4 31,694 31,698 Agriculture — — — — 3,683 3,683 Consumer installment Loans 116 10 7 133 22,040 22,173 All other loans — — — — 704 704 Total loans $ 6,459 $ 1,662 $ 1,841 $ 9,962 $ 478,802 $ 488,764 As of December 31, 2016 (Dollars are in thousands) Loans Loans Loans Total Current Total Real estate secured: Commercial $ 1,676 $ 307 $ 1,083 $ 3,066 $ 100,265 $ 103,331 Construction and land development 103 17 44 164 25,591 25,755 Residential 1-4 family 4,237 1,547 2,233 8,017 241,683 249,700 Multifamily 1,367 — — 1,367 11,215 12,582 Farmland 2,987 — — 2,987 21,961 24,948 Total real estate loans 10,370 1,871 3,360 15,601 400,715 416,316 Commercial 20 — — 20 26,935 26,955 Agriculture 19 — 78 97 3,067 3,164 Consumer installment Loans 110 15 36 161 22,027 22,188 All other loans — — — — 6 6 Total loans $ 10,519 $ 1,886 $ 3,474 $ 15,879 $ 452,750 $ 468,629 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 Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of June 30, 2017 (Dollars are in thousands) Pass Special Substandard Total Real estate secured: Commercial $ 100,308 $ 6,444 $ 2,715 $ 109,467 Construction and land development 27,813 980 288 29,081 Residential 1-4 family 242,884 1,994 8,190 253,068 Multifamily 12,902 — 1,685 14,587 Farmland 20,282 2,256 1,765 24,303 Total real estate loans 404,189 11,674 14,643 430,506 Commercial 30,942 260 496 31,698 Agriculture 3,652 28 3 3,683 Consumer installment loans 22,125 3 45 22,173 All other loans 704 — — 704 Total $ 461,612 $ 11,965 $ 15,187 $ 488,764 As of December 31, 2016 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 92,562 $ 6,922 $ 3,847 $ 103,331 Construction and land development 23,905 1,531 319 25,755 Residential 1-4 family 238,400 2,117 9,183 249,700 Multifamily 10,848 1,367 367 12,582 Farmland 19,070 1,545 4,333 24,948 Total real estate loans 384,785 13,482 18,049 416,316 Commercial 26,197 691 67 26,955 Agriculture 3,076 — 88 3,164 Consumer installment loans 22,086 — 102 22,188 All other loans 6 — — 6 Total $ 436,150 $ 14,173 18,306 $ 468,629 |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
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 June 30, 2017. 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 June 30, 2017 (Dollars are in thousands) Beginning Charge Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,625 $ (81 ) $ 190 $ (173 ) $ 1,561 Construction and land development 346 — — (42 ) 304 Residential 1-4 family 2,376 (267 ) 33 138 2,280 Multifamily 241 — — 221 462 Farmland 428 — 356 (249 ) 535 Total real estate loans 5,016 (348 ) 579 (105 ) 5,142 Commercial 163 (11 ) 130 109 391 Agriculture 31 — 3 (9 ) 25 Consumer installment loans 123 (133 ) 15 160 165 All other loans — — — 5 5 Unallocated 739 — — (160 ) 579 Total $ 6,072 $ (492 ) $ 727 $ — $ 6,307 Allowance for Loan Losses Recorded Investment in Loans As of June 30, 2017 (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 $ 99 $ 1,462 $ 1,561 $ 3,726 $ 105,741 $ 109,467 Construction and land development 81 223 304 215 28,866 29,081 Residential 1-4 family 108 2,172 2,280 4,421 248,647 253,068 Multifamily 216 246 462 1,620 12,967 14,587 Farmland 328 207 535 1,786 22,517 24,303 Total real estate loans 832 4,310 5,142 11,768 418,738 430,506 Commercial 182 209 391 497 31,201 31,698 Agriculture — 25 25 18 3,665 3,683 Consumer installment loans — 165 165 9 22,164 22,173 All other loans — 5 5 — 704 704 Unallocated — 579 579 — — — Total $ 1,014 $ 5,293 $ 6,307 $ 12,292 $ 476,472 $ 488,764 The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 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 December 31, 2016 (Dollars are in thousands) Beginning Charge Recoveries Provisions Ending Balance Real estate secured: Commercial $ 2,384 $ (557 ) $ 220 $ (422 ) $ 1,625 Construction and land development 332 (5 ) 26 (7 ) 346 Residential 1-4 family 2,437 (720 ) 87 572 2,376 Multifamily 232 (18 ) — 27 241 Farmland 675 (2 ) 103 (348 ) 428 Total real estate loans 6,060 (1,302 ) 436 (178 ) 5,016 Commercial 266 (65 ) 62 (100 ) 163 Agriculture 124 — 7 (100 ) 31 Consumer installment loans 128 (83 ) 24 54 123 All other loans 1 — — (1 ) — Unallocated 914 — — (175 ) 739 Total $ 7,493 $ (1,450 ) $ 529 $ (500 ) $ 6,072 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 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 $ 65 $ 1,560 $ 1,625 $ 4,827 $ 98,504 $ 103,331 Construction and land development 106 240 346 245 25,510 25,755 Residential 1-4 family 56 2,320 2,376 4,416 245,284 249,700 Multifamily — 241 241 301 12,281 12,582 Farmland 299 129 428 4,486 20,462 24,948 Total real estate loans 526 4,490 5,016 14,275 402,041 416,316 Commercial 18 145 163 67 26,888 26,955 Agriculture 5 26 31 24 3,140 3,164 Consumer installment loans 3 120 123 35 22,153 22,188 All other loans — — — — 6 6 Unallocated — 739 739 — — — Total $ 552 $ 5,520 6,072 $ 14,401 $ 454,228 $ 468,629 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. |
TROUBLED DEBT RESTRUCTURINGS
TROUBLED DEBT RESTRUCTURINGS | 6 Months Ended |
Jun. 30, 2017 | |
Troubled Debt Restructurings | |
TROUBLED DEBT RESTRUCTURINGS | NOTE 8 TROUBLED DEBT RESTRUCTURINGS: At June 30, 2017 there were $7.4 million in loans that are classified as troubled debt restructurings compared to $9.6 million at December 31, 2016. The following table presents information related to loans modified as troubled debt restructurings during the six and three months ended June 30, 2017 and 2016. For the six months ended For the six months ended Troubled Debt Restructurings # of Loans Pre-Mod. Recorded Investment Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial — $ — $ — 1 $ 341 $ 339 Construction and land Development — — — — — — Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland — — — 1 291 291 Total real estate loans — — — 2 632 630 Commercial 1 443 443 — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 1 $ 443 $ 443 2 $ 632 $ 630 For the three months ended For the three months ended Troubled Debt Restructurings # of Pre-Mod. Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land Development — — — — — — Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland — — — 1 291 291 Total real estate loans — — — 1 291 291 Commercial 1 443 443 — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 1 $ 443 $ 443 1 $ 291 $ 291 During the six and three months ended June 30, 2017, the Company modified the terms of one loan for which the modification was considered to be a troubled debt restructuring. The interest rate was not modified on this loan; however, the payment terms and maturity date were changed. During the six months ended June 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 three months ended June 30, 2016, the Company modified the terms of one loan for which the modification was considered to be a troubled debt restructuring. The interest rate was lowered and the payment terms and maturity date were changed. No loans modified as troubled debt restructurings defaulted during the six months ended June 30, 2017. There was one commercial real estate loan with a recorded investment of $308 thousand that had been modified as a troubled debt restructuring that defaulted during the six months ended June 30, 2016, which was within twelve months of the loan’s modification date. There were no loans modified as troubled debt restructurings that defaulted during the three months ended June 30, 2017 and 2016, 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. |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
OTHER REAL ESTATE OWNED | NOTE 9 OTHER REAL ESTATE OWNED: The following table summarizes the activity in other real estate owned for the six months ended June 30, 2017 and the year ended December 31, 2016: (Dollars are in thousands) June 30, December 31, Balance, beginning of period $ 10,655 $ 12,398 Additions 2,071 4,577 Purchases of/improvements to other real estate owned — 48 Transfers of premises and equipment to other real estate owned 125 — Transfers of other real estate owned to premises and equipment — (125 ) Proceeds from sales of other real estate owned (3,961 ) (4,232 ) Loans made to finance sales of other real estate owned (1,092 ) (818 ) Adjustment of carrying value (590 ) (1,414 ) Deferred gain from sales 44 — Gain (loss) from sales (4 ) 221 Balance, end of period $ 7,248 $ 10,655 |
FAIR VALUES
FAIR VALUES | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUES | NOTE 10 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 establishes 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 June 30, 2017 (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 $ — $ 26,845 $ — Taxable municipals — 2,315 — Corporate bonds — 5,090 — Mortgage backed securities — 41,545 — (On a non-recurring basis) Other real estate owned — — 7,248 Impaired loans: Real estate secured: Commercial — — 3,627 Construction and land development — — 134 Residential 1-4 family — — 4,313 Multifamily — — 1,404 Farmland — — 1,458 Commercial — — 315 Agriculture — — 18 Consumer installment loans — — 9 All other loans — — — Total $ — $ 75,795 $ 18,526 Assets and liabilities measured at fair value are as follows as of December 31, 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 $ — $ 24,632 $ — Taxable municipals — 2,292 — Corporate bonds — 3,749 — Mortgage backed securities — 39,338 — (On a non-recurring basis) Other real estate owned — — 10,655 Impaired loans: Real estate secured: Commercial — — 4,762 Construction and land development — — 139 Residential 1-4 family — — 4,360 Multifamily — — 301 Farmland — — 4,187 Commercial — — 49 Agriculture — — 19 Consumer installment loans — — 32 All other loans — — — Total $ — $ 70,011 $ 24,504 For Level 3 assets measured at fair value on a recurring or non-recurring basis as of June 30, 2017 and December 31, 2016, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at Fair Value at Valuation Significant General Range Impaired Loans $ 11,278 $ 13,849 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 $ 7,248 $ 10,655 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 June 30, 2017 and December 31, 2016. 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 June 30, 2017 and December 31, 2016. Fair Value Measurements (Dollars are in thousands) Carrying Fair Quoted market price in active markets Significant other observable inputs Significant unobservable inputs June 30, 2017 Financial Instruments – Assets Net Loans $ 482,457 $ 485,235 $ — $ 473,957 $ 11,278 Financial Instruments – Liabilities Time Deposits 267,596 267,293 — 267,293 — FHLB Advances 8,158 8,356 — 8,356 — December 31, 2016 Financial Instruments – Assets Net Loans $ 462,557 $ 467,707 $ — $ 453,858 $ 13,849 Financial Instruments – Liabilities Time Deposits 247,819 247,258 — 247,258 — FHLB Advances 13,758 13,993 — 13,993 — |
SALE AND LEASEBACK TRANSACTIONS
SALE AND LEASEBACK TRANSACTIONS | 6 Months Ended |
Jun. 30, 2017 | |
Leases [Abstract] | |
SALE AND LEASEBACK TRANSACTIONS | NOTE 11 SALE AND LEASEBACK TRANSACTIONS: On May 31, 2017 the Bank, the wholly-owned subsidiary of the Company, sold four (4) of its properties, one each located in Abingdon, Bristol, Gate City and Castlewood, Virginia to NPB Good Steward Properties, LLC (“Good Steward”) for a total purchase price of $6.2 million. Good Steward is not an affiliate of the Company or the Bank. After selling expenses of $192 thousand, the net proceeds on the transactions were $6.0 million. The sales prices for the properties were based on outside appraisals obtained by the Bank. The Bank provided $4.9 million of financing to Good Steward for this transaction for a term of 10 years. In connection with the sale of the four properties, the Bank on May 31, 2017 entered into commercial lease agreements with Good Steward for the properties (the “Leases”), which will allow the Bank to continue to service customers from these locations. The Leases, which commenced on June 1, 2017, provide the Bank with use of the properties for an initial term of fifteen (15) years. Base rent payments for years 1 through 5 of the Leases are approximately $417 thousand a year. The base rent payments will increase by 8% for years 6 thru 10 of the Leases and then by another 8% for years 11 thru 15 of the Leases. The Bank has the option to renew the Leases five (5) times and each renewal would be for a term of five (5) years. The base rent for the renewals would be negotiated at the time the renewal option is exercised by the Bank. While the cash lease payments are currently $417 thousand a year, the Company is required to straight-line the expense over the initial term of fifteen (15) years. As a result, the annual lease expense will be approximately $451 thousand. In anticipation of this transaction the Company adopted ASU No. 2016-02 Leases (Topic 842) early. This ASU revised certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. As a result of this transaction the Company recognized right-to-use assets – operating leases of approximately $5.3 million, along with corresponding lease liabilities of approximately $5.3 million. The $5.3 million was determined by calculating the present value of the annual cash lease payments using a discount rate of 3.25%. The 3.25% discount rate was determined to be our fifteen (15) year incremental borrowing rate as of May 31, 2017. As a result of the sale and the determination that the corresponding leases were operating leases, the Company recognized a gain of $2.6 million on the sale and leaseback transactions. The Bank and its parent, New Peoples Bankshares, Inc. and affiliates have no relationship with Good Steward other than those discussed above. The Company’s operating lease cost for the three and six months ended June 30, 2017 as a result of the transactions discussed above was approximately $38 thousand. All other operating leases the Company has were evaluated and determined that they are immaterial to the financial statements. |
RECENT ACCOUNTING DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING DEVELOPMENTS | NOTE 12 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 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 January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification (“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. As discussed in Note 11, the Company early adopted ASU No. 2016-02 Leases (Topic 842). 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 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. Early adoption is permitted for all organizations for periods beginning after December 15, 2018. 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 December 2016, the FASB issued technical corrections and improvements to the Revenue from Contracts with Customers Topic. These corrections make a limited number of revisions to several pieces of the revenue recognition standard issued in 2014. The effective date and transition requirements for the technical corrections 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 2017, the FASB updated the Accounting Changes and Error Corrections and the Investments—Equity Method and Joint Ventures Topics of the Accounting Standards Codification. The ASU incorporates into the Accounting Standards Codification recent SEC guidance about disclosing, under SEC SAB Topic 11.M, the effect on financial statements of adopting the revenue, leases, and credit losses standards. The ASU was effective upon issuance. The Company is currently evaluating the impact on additional disclosure requirements as each of the standards is adopted, however it does not expect these amendments to have a material effect on its financial position, results of operations or cash flows. In February 2017, the FASB amended the Other Income Topic of the ASC to clarify the scope of the guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. The amendments conform the derecognition guidance on nonfinancial assets with the model for transactions in the new revenue standard. 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. 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. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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 Company’s financial position at June 30, 2017 and December 31, 2016, and the results of operations for the three and six month periods ended June 30, 2017 and 2016. The notes included herein should be read in conjunction with the notes to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. The results of operations for the three and six month periods ended June 30, 2017 and 2016 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. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Per Share | |
Schedule of anti-dilutive income per common share | Basic and diluted net income per common share calculations follows: (Amounts in Thousands, Except For the three months For the six months 2017 2016 2017 2016 Net income $ 2,577 $ 882 $ 2,692 $ 1,580 Weighted average shares outstanding 23,355,503 23,354,082 23,355,198 23,354,082 Dilutive shares for stock options and warrants — — — — Weighted average dilutive shares outstanding 23,355,503 23,354,082 23,355,198 23,354,082 Basic and diluted income per share $ 0.11 $ 0.04 $ 0.12 $ 0.07 |
CAPITAL (Tables)
CAPITAL (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Capital [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 June 30, 2017: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 69,284 16.22 % $ 34,162 8.0 % $ 42,702 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,934 14.97 % 25,621 6.0 % 34,162 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 63,934 9.86 % 25,929 4.0 % 32,411 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 63,934 14.97 % 19,216 4.5 % 27,756 6.5 % December 31, 2016: Total Capital to Risk Weighted Assets: New Peoples Bank, Inc. $ 67,549 16.64 % $ 32,476 8.0 % $ 40,595 10.0 % Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,462 15.39 % 24,357 6.0 % 32,476 8.0 % Tier 1 Capital to Average Assets: New Peoples Bank, Inc. 62,462 9.93 % 25,149 4.0 % 31,436 5.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: New Peoples Bank, Inc. 62,462 15.39 % 18,268 4.5 % 26,386 6.5 % |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investment Securities Activity | |
Schedule of securities' amortized cost and estimated fair value | 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 June 30, 2017 U.S. Government Agencies $ 26,789 $ 182 $ 126 $ 26,845 Taxable municipals 2,325 14 24 2,315 Corporate bonds 4,860 230 — 5,090 Mortgage backed securities 41,905 43 403 41,545 Total Securities AFS $ 75,879 $ 469 $ 553 $ 75,795 December 31, 2016 U.S. Government Agencies $ 24,821 $ 80 $ 269 $ 24,632 Taxable municipals 2,340 2 50 2,292 Corporate bonds 3,600 149 — 3,749 Mortgage backed securities 39,941 25 628 39,338 Total Securities AFS $ 70,702 $ 256 $ 947 $ 70,011 |
Schedule of fair value and gross unrealized losses on investment securities in a continuous unrealized loss position | 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 June 30, 2017 and December 31, 2016. Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Fair Unrealized Fair Unrealized June 30, 2017 U.S. Government Agencies $ 9,829 $ 117 $ 1,496 $ 9 $ 11,325 $ 126 Taxable municipals 779 24 — — 779 24 Corporate bonds — — — — — — Mtg. backed securities 26,676 278 7,031 125 33,707 403 Total Securities AFS $ 37,284 $ 419 $ 8,527 $ 134 $ 45,811 $ 553 December 31, 2016 U.S. Government Agencies $ 12,081 $ 250 $ 2,449 $ 19 $ 14,530 $ 269 Taxable municipals 1,561 50 — — 1,561 50 Corporate bonds 500 — — — 500 — Mtg. backed securities 28,680 543 4,655 85 33,335 628 Total Securities AFS $ 42,822 $ 843 $ 7,104 $ 104 $ 49,926 $ 947 |
Schedule of gross realized gains and losses | Gross realized gains and losses pertaining to the sale of investment securities available for sale are detailed as follows: For the three months For the six months (Dollars are in thousands) 2017 2016 2017 2016 Gross gains realized $ — $ 156 $ — $ 275 Gross losses realized — (21 ) — (35 ) Net realized gains $ — $ 135 $ — $ 240 |
Schedule of amortized cost and fair value of investment securities' contractual maturity | The amortized cost and fair value of investment securities at June 30, 2017, 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 $ — $ — — % Due after one year through five years 4,101 4,099 2.00 % Due after five years through ten years 16,608 16,788 2.86 % Due after ten years 55,170 54,908 2.09 % Total $ 75,879 $ 75,795 2.25 % |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Summary of loans receivable outstanding | Loans receivable outstanding are summarized as follows: (Dollars are in thousands) June 30, 2017 December 31, 2016 Real estate secured: Commercial $ 109,467 $ 103,331 Construction and land development 29,081 25,755 Residential 1-4 family 253,068 249,700 Multifamily 14,587 12,582 Farmland 24,303 24,948 Total real estate loans 430,506 416,316 Commercial 31,698 26,955 Agriculture 3,683 3,164 Consumer installment loans 22,173 22,188 All other loans 704 6 Total loans $ 488,764 $ 468,629 |
Summary of loans receivable on nonaccrual status | Loans receivable on nonaccrual status are summarized as follows: (Dollars are in thousands) June 30, 2017 December 31, 2016 Real estate secured: Commercial $ 2,084 $ 3,403 Construction and land development 289 319 Residential 1-4 family 7,200 8,355 Multifamily 158 166 Farmland 838 1,003 Total real estate loans 10,569 13,246 Agriculture 3 83 Consumer installment loans 36 76 Total loans receivable on nonaccrual status $ 10,608 $ 13,405 |
Summary of impaired loans | The following table presents information concerning the Company’s investment in loans considered impaired as of June 30, 2017 and December 31, 2016: As of June 30, 2017 (Dollars are in thousands) Recorded Unpaid Principal Balance Related With no related allowance recorded: Real estate secured: Commercial $ 3,017 $ 3,108 $ — Construction and land development — — — Residential 1-4 family 3,852 4,152 — Multifamily 289 330 — Farmland 884 1,261 — Commercial — — — Agriculture 18 18 — Consumer installment loans 9 9 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 709 800 99 Construction and land development 215 454 81 Residential 1-4 family 569 596 108 Multifamily 1,331 1,399 216 Farmland 902 918 328 Commercial 497 497 182 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ 12,292 $ 13,542 $ 1,014 As of December 31, 2016 (Dollars are in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 3,636 $ 4,055 $ — Construction and land development 5 5 — Residential 1-4 family 3,861 4,182 — Multifamily 301 342 — Farmland 3,895 4,601 — Commercial — — — Agriculture 19 19 — Consumer installment loans 26 43 — All other loans — — — With an allowance recorded: Real estate secured: Commercial 1,191 1,270 65 Construction and land development 240 469 106 Residential 1-4 family 555 565 56 Multifamily — — — Farmland 591 602 299 Commercial 67 67 18 Agriculture 5 5 5 Consumer installment loans 9 9 3 All other loans — — — Total $ 14,401 $ 16,234 $ 552 |
Summary of average impaired loans | The following table presents information concerning the Company’s average impaired loans and interest recognized on those impaired loans, for the periods indicated: Six Months Ended June 30, 2017 June 30, 2016 (Dollars are in thousands) Average Interest Average Interest With no related allowance recorded: Real estate secured: Commercial $ 3,136 $ 64 $ 4,451 $ 73 Construction and land development 3 — 116 — Residential 1-4 family 3,831 102 3,758 103 Multifamily 440 11 282 11 Farmland 2,884 26 4,162 102 Commercial — — — — Agriculture 19 1 33 2 Consumer installment loans 15 — 32 2 All other loans — — — — With an allowance recorded: Real estate secured: Commercial 837 6 1,522 — Construction and land development 228 — 277 — Residential 1-4 family 657 9 1,037 11 Multifamily 444 32 133 4 Farmland 694 16 595 12 Commercial 210 16 72 2 Agriculture 2 — 139 (2 ) Consumer installment loans 3 — 22 — All other loans — — — — Total $ 13,403 $ 283 $ 16,631 $ 320 Three Months Ended June 30, 2017 June 30, 2016 (Dollars are in thousands) Average Interest Average Interest With no related allowance recorded: Real estate secured: Commercial $ 2,886 $ 39 $ 4,571 $ 38 Construction and land development 2 — 169 1 Residential 1-4 family 3,817 53 4,118 52 Multifamily 510 (1 ) 208 9 Farmland 2,378 141 4,252 51 Commercial — — — — Agriculture 19 1 31 1 Consumer installment loans 9 — 43 1 All other loans — — — — With an allowance recorded: Real estate secured: Commercial 660 4 1,031 — Construction and land development 222 — 271 — Residential 1-4 family 708 — 595 6 Multifamily 666 32 199 2 Farmland 746 11 512 6 Commercial 282 16 73 1 Agriculture 1 — 200 — Consumer installment loans — — 11 — All other loans — — — — Total $ 12,906 $ 296 $ 16,284 $ 168 |
Summary of age analysis of past due loans receivable | An age analysis of past due loans receivable is below. At June 30, 2017 and December 31, 2016, there were no loans over 90 days past due that were accruing. As of June 30, 2017 (Dollars are in thousands) Loans Loans Loans Total Current Total Real estate secured: Commercial $ 3,251 $ 245 $ — $ 3,496 $ 105,971 $ 109,467 Construction and land development 367 — 43 410 28,671 29,081 Residential 1-4 family 2,335 1,151 1,483 4,969 248,099 253,068 Multifamily 98 — — 98 14,489 14,587 Farmland 288 256 308 852 23,451 24,303 Total real estate loans 6,339 1,652 1,834 9,825 420,681 430,506 Commercial 4 — — 4 31,694 31,698 Agriculture — — — — 3,683 3,683 Consumer installment Loans 116 10 7 133 22,040 22,173 All other loans — — — — 704 704 Total loans $ 6,459 $ 1,662 $ 1,841 $ 9,962 $ 478,802 $ 488,764 As of December 31, 2016 (Dollars are in thousands) Loans Loans Loans Total Current Total Real estate secured: Commercial $ 1,676 $ 307 $ 1,083 $ 3,066 $ 100,265 $ 103,331 Construction and land development 103 17 44 164 25,591 25,755 Residential 1-4 family 4,237 1,547 2,233 8,017 241,683 249,700 Multifamily 1,367 — — 1,367 11,215 12,582 Farmland 2,987 — — 2,987 21,961 24,948 Total real estate loans 10,370 1,871 3,360 15,601 400,715 416,316 Commercial 20 — — 20 26,935 26,955 Agriculture 19 — 78 97 3,067 3,164 Consumer installment Loans 110 15 36 161 22,027 22,188 All other loans — — — — 6 6 Total loans $ 10,519 $ 1,886 $ 3,474 $ 15,879 $ 452,750 $ 468,629 |
Summary of risk category of loans receivable | Based on the most recent analysis performed, the risk category of loans receivable was as follows: As of June 30, 2017 (Dollars are in thousands) Pass Special Substandard Total Real estate secured: Commercial $ 100,308 $ 6,444 $ 2,715 $ 109,467 Construction and land development 27,813 980 288 29,081 Residential 1-4 family 242,884 1,994 8,190 253,068 Multifamily 12,902 — 1,685 14,587 Farmland 20,282 2,256 1,765 24,303 Total real estate loans 404,189 11,674 14,643 430,506 Commercial 30,942 260 496 31,698 Agriculture 3,652 28 3 3,683 Consumer installment loans 22,125 3 45 22,173 All other loans 704 — — 704 Total $ 461,612 $ 11,965 $ 15,187 $ 488,764 As of December 31, 2016 (Dollars are in thousands) Pass Special Mention Substandard Total Real estate secured: Commercial $ 92,562 $ 6,922 $ 3,847 $ 103,331 Construction and land development 23,905 1,531 319 25,755 Residential 1-4 family 238,400 2,117 9,183 249,700 Multifamily 10,848 1,367 367 12,582 Farmland 19,070 1,545 4,333 24,948 Total real estate loans 384,785 13,482 18,049 416,316 Commercial 26,197 691 67 26,955 Agriculture 3,076 — 88 3,164 Consumer installment loans 22,086 — 102 22,188 All other loans 6 — — 6 Total $ 436,150 $ 14,173 18,306 $ 468,629 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Summary of activity in the allowance for loan losses by portfolio segment | The following table details activity in the allowance for loan losses by portfolio segment for the period ended June 30, 2017. 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 June 30, 2017 (Dollars are in thousands) Beginning Charge Recoveries Provisions Ending Balance Real estate secured: Commercial $ 1,625 $ (81 ) $ 190 $ (173 ) $ 1,561 Construction and land development 346 — — (42 ) 304 Residential 1-4 family 2,376 (267 ) 33 138 2,280 Multifamily 241 — — 221 462 Farmland 428 — 356 (249 ) 535 Total real estate loans 5,016 (348 ) 579 (105 ) 5,142 Commercial 163 (11 ) 130 109 391 Agriculture 31 — 3 (9 ) 25 Consumer installment loans 123 (133 ) 15 160 165 All other loans — — — 5 5 Unallocated 739 — — (160 ) 579 Total $ 6,072 $ (492 ) $ 727 $ — $ 6,307 Allowance for Loan Losses Recorded Investment in Loans As of June 30, 2017 (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 $ 99 $ 1,462 $ 1,561 $ 3,726 $ 105,741 $ 109,467 Construction and land development 81 223 304 215 28,866 29,081 Residential 1-4 family 108 2,172 2,280 4,421 248,647 253,068 Multifamily 216 246 462 1,620 12,967 14,587 Farmland 328 207 535 1,786 22,517 24,303 Total real estate loans 832 4,310 5,142 11,768 418,738 430,506 Commercial 182 209 391 497 31,201 31,698 Agriculture — 25 25 18 3,665 3,683 Consumer installment loans — 165 165 9 22,164 22,173 All other loans — 5 5 — 704 704 Unallocated — 579 579 — — — Total $ 1,014 $ 5,293 $ 6,307 $ 12,292 $ 476,472 $ 488,764 |
Schedule of allocation of portion of allowance | The following table details activity in the allowance for loan losses by portfolio segment for the period ended December 31, 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 December 31, 2016 (Dollars are in thousands) Beginning Charge Recoveries Provisions Ending Balance Real estate secured: Commercial $ 2,384 $ (557 ) $ 220 $ (422 ) $ 1,625 Construction and land development 332 (5 ) 26 (7 ) 346 Residential 1-4 family 2,437 (720 ) 87 572 2,376 Multifamily 232 (18 ) — 27 241 Farmland 675 (2 ) 103 (348 ) 428 Total real estate loans 6,060 (1,302 ) 436 (178 ) 5,016 Commercial 266 (65 ) 62 (100 ) 163 Agriculture 124 — 7 (100 ) 31 Consumer installment loans 128 (83 ) 24 54 123 All other loans 1 — — (1 ) — Unallocated 914 — — (175 ) 739 Total $ 7,493 $ (1,450 ) $ 529 $ (500 ) $ 6,072 Allowance for Loan Losses Recorded Investment in Loans As of December 31, 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 $ 65 $ 1,560 $ 1,625 $ 4,827 $ 98,504 $ 103,331 Construction and land development 106 240 346 245 25,510 25,755 Residential 1-4 family 56 2,320 2,376 4,416 245,284 249,700 Multifamily — 241 241 301 12,281 12,582 Farmland 299 129 428 4,486 20,462 24,948 Total real estate loans 526 4,490 5,016 14,275 402,041 416,316 Commercial 18 145 163 67 26,888 26,955 Agriculture 5 26 31 24 3,140 3,164 Consumer installment loans 3 120 123 35 22,153 22,188 All other loans — — — — 6 6 Unallocated — 739 739 — — — Total $ 552 $ 5,520 6,072 $ 14,401 $ 454,228 $ 468,629 |
TROUBLED DEBT RESTRUCTURING (Ta
TROUBLED DEBT RESTRUCTURING (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Troubled Debt Restructurings | |
Schedule of loans modified as troubled debt restructurings | The following table presents information related to loans modified as troubled debt restructurings during the six and three months ended June 30, 2017 and 2016. For the six months ended For the six months ended Troubled Debt Restructurings # of Loans Pre-Mod. Recorded Investment Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial — $ — $ — 1 $ 341 $ 339 Construction and land Development — — — — — — Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland — — — 1 291 291 Total real estate loans — — — 2 632 630 Commercial 1 443 443 — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 1 $ 443 $ 443 2 $ 632 $ 630 For the three months ended For the three months ended Troubled Debt Restructurings # of Pre-Mod. Post-Mod. # of Pre-Mod. Post-Mod. Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land Development — — — — — — Residential 1-4 family — — — — — — Multifamily — — — — — — Farmland — — — 1 291 291 Total real estate loans — — — 1 291 291 Commercial 1 443 443 — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total 1 $ 443 $ 443 1 $ 291 $ 291 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of other real estate | The following table summarizes the activity in other real estate owned for the six months ended June 30, 2017 and the year ended December 31, 2016: (Dollars are in thousands) June 30, December 31, Balance, beginning of period $ 10,655 $ 12,398 Additions 2,071 4,577 Purchases of/improvements to other real estate owned — 48 Transfers of premises and equipment to other real estate owned 125 — Transfers of other real estate owned to premises and equipment — (125 ) Proceeds from sales of other real estate owned (3,961 ) (4,232 ) Loans made to finance sales of other real estate owned (1,092 ) (818 ) Adjustment of carrying value (590 ) (1,414 ) Deferred gain from sales 44 — Gain (loss) from sales (4 ) 221 Balance, end of period $ 7,248 $ 10,655 |
FAIR VALUES (Tables)
FAIR VALUES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of assets and liabilities measured at fair value | Assets and liabilities measured at fair value are as follows as of June 30, 2017 (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 $ — $ 26,845 $ — Taxable municipals — 2,315 — Corporate bonds — 5,090 — Mortgage backed securities — 41,545 — (On a non-recurring basis) Other real estate owned — — 7,248 Impaired loans: Real estate secured: Commercial — — 3,627 Construction and land development — — 134 Residential 1-4 family — — 4,313 Multifamily — — 1,404 Farmland — — 1,458 Commercial — — 315 Agriculture — — 18 Consumer installment loans — — 9 All other loans — — — Total $ — $ 75,795 $ 18,526 Assets and liabilities measured at fair value are as follows as of December 31, 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 $ — $ 24,632 $ — Taxable municipals — 2,292 — Corporate bonds — 3,749 — Mortgage backed securities — 39,338 — (On a non-recurring basis) Other real estate owned — — 10,655 Impaired loans: Real estate secured: Commercial — — 4,762 Construction and land development — — 139 Residential 1-4 family — — 4,360 Multifamily — — 301 Farmland — — 4,187 Commercial — — 49 Agriculture — — 19 Consumer installment loans — — 32 All other loans — — — Total $ — $ 70,011 $ 24,504 |
Schedule of significant unobservable inputs in level 3 assets | For Level 3 assets measured at fair value on a recurring or non-recurring basis as of June 30, 2017 and December 31, 2016, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value at Fair Value at Valuation Significant General Range Impaired Loans $ 11,278 $ 13,849 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 $ 7,248 $ 10,655 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 | 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 June 30, 2017 and December 31, 2016. Fair Value Measurements (Dollars are in thousands) Carrying Fair Quoted market price in active markets Significant other observable inputs Significant unobservable inputs June 30, 2017 Financial Instruments – Assets Net Loans $ 482,457 $ 485,235 $ — $ 473,957 $ 11,278 Financial Instruments – Liabilities Time Deposits 267,596 267,293 — 267,293 — FHLB Advances 8,158 8,356 — 8,356 — December 31, 2016 Financial Instruments – Assets Net Loans $ 462,557 $ 467,707 $ — $ 453,858 $ 13,849 Financial Instruments – Liabilities Time Deposits 247,819 247,258 — 247,258 — FHLB Advances 13,758 13,993 — 13,993 — |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting Policies [Abstract] | ||||
Net income | $ 2,577 | $ 882 | $ 2,692 | $ 1,580 |
Weighted average shares outstanding | 23,355,503 | 23,354,082 | 23,355,198 | 23,354,082 |
Weighted average dilutive shares outstanding | 23,355,503 | 23,354,082 | 23,355,198 | 23,354,082 |
Basic and diluted income per share | $ 0.11 | $ 0.04 | $ 0.12 | $ 0.07 |
CAPITAL (Details)
CAPITAL (Details) - Bank - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Total Capital to Risk Weighted Assets, Actual, Amount | $ 69,284 | $ 67,549 |
Total Capital to Risk Weighted Assets, Actual, Ratio | 16.22% | 16.64% |
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 34,162 | $ 32,476 |
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 | $ 42,702 | $ 40,595 |
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 | $ 63,934 | $ 62,462 |
Tier 1 Capital Risk Weighted Assets, Actual, Ratio | 14.97% | 15.39% |
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 25,621 | $ 24,357 |
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 | $ 34,162 | $ 32,476 |
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 | $ 63,934 | $ 62,462 |
Tier 1 Capital to Average Assets, Actual, Ratio | 9.86% | 9.93% |
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount | $ 25,929 | $ 25,149 |
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 | $ 32,411 | $ 31,436 |
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 | $ 63,934 | $ 62,462 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio | 14.97% | 15.39% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 19,216 | $ 18,268 |
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 | $ 27,756 | $ 26,386 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | $ 75,879 | $ 70,702 |
Gross Unrealized Gains | 469 | 256 |
Gross Unrealized Losses | 553 | 947 |
Approximate Fair Value | 75,795 | 70,011 |
US Government Agencies | ||
Amortized Cost | 26,789 | 24,821 |
Gross Unrealized Gains | 182 | 80 |
Gross Unrealized Losses | 126 | 269 |
Approximate Fair Value | 26,845 | 24,632 |
Taxable Municipals | ||
Amortized Cost | 2,325 | 2,340 |
Gross Unrealized Gains | 14 | 2 |
Gross Unrealized Losses | 24 | 50 |
Approximate Fair Value | 2,315 | 2,292 |
Corporate Bonds | ||
Amortized Cost | 4,860 | 3,600 |
Gross Unrealized Gains | 230 | 149 |
Gross Unrealized Losses | ||
Approximate Fair Value | 5,090 | 3,749 |
Mortgage Backed Securities | ||
Amortized Cost | 41,905 | 39,941 |
Gross Unrealized Gains | 43 | 25 |
Gross Unrealized Losses | 403 | 628 |
Approximate Fair Value | $ 41,545 | $ 39,338 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Less than 12 Months | $ 37,284 | $ 42,822 |
Unrealized Losses, Less than 12 Months | 419 | 843 |
Fair Value, 12 Months or More | 8,527 | 7,104 |
Unrealized Losses, 12 Months or More | 134 | 104 |
Fair Value, Total | 45,811 | 49,926 |
Unrealized Losses, Total | 553 | 947 |
US Government Agencies | ||
Fair Value, Less than 12 Months | 9,829 | 12,081 |
Unrealized Losses, Less than 12 Months | 117 | 250 |
Fair Value, 12 Months or More | 1,496 | 2,449 |
Unrealized Losses, 12 Months or More | 9 | 19 |
Fair Value, Total | 11,325 | 14,530 |
Unrealized Losses, Total | 126 | 269 |
Taxable Municipals | ||
Fair Value, Less than 12 Months | 779 | 1,561 |
Unrealized Losses, Less than 12 Months | 24 | 50 |
Fair Value, Total | 779 | 1,561 |
Unrealized Losses, Total | 24 | 50 |
Mortgage Backed Securities | ||
Fair Value, Less than 12 Months | 26,676 | 28,680 |
Unrealized Losses, Less than 12 Months | 278 | 543 |
Fair Value, 12 Months or More | 7,031 | 4,655 |
Unrealized Losses, 12 Months or More | 125 | 85 |
Fair Value, Total | 33,707 | 33,335 |
Unrealized Losses, Total | $ 403 | 628 |
Corporate Bonds | ||
Fair Value, Less than 12 Months | 500 | |
Fair Value, Total | $ 500 |
INVESTMENT SECURITIES (Detail33
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investment Securities Activity | ||||
Gross gains realized | $ 156 | $ 275 | ||
Gross losses realized | (21) | (35) | ||
Net realized gains | $ 135 | $ 240 |
INVESTMENT SECURITIES (Detail34
INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Investment Securities Activity | ||
Due after one year through five years, Amortized Cost | $ 4,101 | |
Due after five years through ten years, Amortized Cost | 16,608 | |
Due after ten years, Amortized Cost | 55,170 | |
Amortized Cost, Total | 75,879 | $ 70,702 |
Due after one year through five years, Fair Value | 4,099 | |
Due after five years through ten years, Fair Value | 16,788 | |
Due after ten years, Fair Value | 54,908 | |
Approximate Fair Value | $ 75,795 | $ 70,011 |
Due after one year through five years, Weighted Average Yield | 2.00% | 1.85% |
Due after five years through ten years, Weighted Average Yield | 2.86% | |
Due after ten years, Weighted Average Yield | 2.09% | |
Weighted Average Yield, Total | 2.25% |
LOANS_(Details)
LOANS:(Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Total loans and leases | $ 488,764 | $ 468,629 |
Real Estate [Member] | ||
Total loans and leases | 430,506 | 416,316 |
Commercial | ||
Total loans and leases | 26,955 | |
Commercial | Real Estate [Member] | ||
Total loans and leases | 109,467 | 103,331 |
Construction and Land Development | Real Estate [Member] | ||
Total loans and leases | 29,081 | 25,755 |
Residential 1-4 Family | Real Estate [Member] | ||
Total loans and leases | 253,068 | 249,700 |
Multifamily | Real Estate [Member] | ||
Total loans and leases | 14,587 | 12,582 |
Farmland | Real Estate [Member] | ||
Total loans and leases | 24,303 | 24,948 |
Commercial Real Estate [Member] | ||
Total loans and leases | 31,698 | 26,955 |
Agriculture | ||
Total loans and leases | 3,683 | 3,164 |
Consumer Installment Loans | ||
Total loans and leases | 22,173 | 22,188 |
Other Loans | ||
Total loans and leases | $ 704 | $ 6 |
LOANS_ (Details 1)
LOANS: (Details 1) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Total loans receivable on nonaccrual status | $ 10,608 | $ 13,405 | |
Real Estate [Member] | |||
Total loans receivable on nonaccrual status | 10,569 | 13,246 | |
Commercial | |||
Total loans receivable on nonaccrual status | $ 11 | ||
Commercial | Real Estate [Member] | |||
Total loans receivable on nonaccrual status | 2,084 | 3,403 | |
Construction and Land Development | Real Estate [Member] | |||
Total loans receivable on nonaccrual status | 289 | 319 | |
Residential 1-4 Family | Real Estate [Member] | |||
Total loans receivable on nonaccrual status | 7,200 | 8,355 | |
Multifamily | Real Estate [Member] | |||
Total loans receivable on nonaccrual status | 158 | 166 | |
Farmland | Real Estate [Member] | |||
Total loans receivable on nonaccrual status | 838 | 1,003 | |
Agriculture | |||
Total loans receivable on nonaccrual status | 3 | 83 | |
Consumer Installment Loans | |||
Total loans receivable on nonaccrual status | $ 36 | $ 76 |
LOANS_ (Details 2)
LOANS: (Details 2) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Recorded Investment | $ 12,292 | $ 14,401 |
Unpaid Principal Balance | 13,542 | 16,234 |
Related Allowance | 1,014 | 552 |
Agriculture | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 18 | 19 |
Unpaid Principal Balance | 18 | 19 |
Related Allowance | ||
Agriculture | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 5 | |
Unpaid Principal Balance | 5 | |
Related Allowance | 5 | |
Consumer Installment Loans | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 9 | 26 |
Unpaid Principal Balance | 9 | 43 |
Related Allowance | ||
Consumer Installment Loans | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 9 | |
Unpaid Principal Balance | 9 | |
Related Allowance | 3 | |
Commercial Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 497 | 67 |
Unpaid Principal Balance | 497 | 67 |
Related Allowance | 182 | 18 |
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 3,017 | 3,636 |
Unpaid Principal Balance | 3,108 | 4,055 |
Related Allowance | ||
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 709 | 1,191 |
Unpaid Principal Balance | 800 | 1,270 |
Related Allowance | 99 | 65 |
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 5 | |
Unpaid Principal Balance | 5 | |
Related Allowance | ||
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 215 | 240 |
Unpaid Principal Balance | 454 | 469 |
Related Allowance | 81 | 106 |
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 3,852 | 3,861 |
Unpaid Principal Balance | 4,152 | 4,182 |
Related Allowance | ||
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 569 | 555 |
Unpaid Principal Balance | 596 | 565 |
Related Allowance | 108 | 56 |
Multifamily | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 289 | 301 |
Unpaid Principal Balance | 330 | 342 |
Related Allowance | ||
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 1,331 | |
Unpaid Principal Balance | 1,399 | |
Related Allowance | 216 | |
Farmland | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Recorded Investment | 884 | 3,895 |
Unpaid Principal Balance | 1,261 | 4,601 |
Related Allowance | ||
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Recorded Investment | 902 | 591 |
Unpaid Principal Balance | 918 | 602 |
Related Allowance | $ 328 | $ 299 |
LOANS_ (Details 3)
LOANS: (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | $ 12,906 | $ 13,403 |
Interest Income Recognized | 296 | 283 |
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 16,284 | 16,631 |
Interest Income Recognized | 168 | 320 |
Impaired Financing Receivables With No Related Allowance [Member] | Agriculture | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 19 | 19 |
Interest Income Recognized | 1 | 1 |
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 31 | 33 |
Interest Income Recognized | 1 | 2 |
Impaired Financing Receivables With No Related Allowance [Member] | Consumer Installment Loans | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 9 | 15 |
Interest Income Recognized | ||
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 43 | 32 |
Interest Income Recognized | 1 | 2 |
Impaired Financing Receivables With Related Allowance [Member] | Agriculture | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 1 | 2 |
Interest Income Recognized | ||
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 200 | 139 |
Interest Income Recognized | (2) | |
Impaired Financing Receivables With Related Allowance [Member] | Consumer Installment Loans | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 3 | |
Interest Income Recognized | ||
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 11 | 22 |
Interest Income Recognized | ||
Impaired Financing Receivables With Related Allowance [Member] | Commercial Real Estate [Member] | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 282 | 210 |
Interest Income Recognized | 16 | 16 |
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 73 | 72 |
Interest Income Recognized | 1 | 2 |
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 2,886 | 3,136 |
Interest Income Recognized | 39 | 64 |
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 4,571 | 4,451 |
Interest Income Recognized | 38 | 73 |
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 660 | 837 |
Interest Income Recognized | 4 | 6 |
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 1,031 | 1,522 |
Interest Income Recognized | ||
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 2 | 3 |
Interest Income Recognized | ||
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 169 | 116 |
Interest Income Recognized | 1 | |
Construction and Land Development | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 222 | 228 |
Interest Income Recognized | ||
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 271 | 277 |
Interest Income Recognized | ||
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 3,817 | 3,831 |
Interest Income Recognized | 53 | 102 |
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 4,118 | 3,758 |
Interest Income Recognized | 52 | 103 |
Residential 1-4 Family | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 708 | 657 |
Interest Income Recognized | 9 | |
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 595 | 1,037 |
Interest Income Recognized | 6 | 11 |
Multifamily | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 510 | 440 |
Interest Income Recognized | (1) | 11 |
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 208 | 282 |
Interest Income Recognized | 9 | 11 |
Multifamily | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 666 | 444 |
Interest Income Recognized | 32 | 32 |
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 199 | 133 |
Interest Income Recognized | 2 | 4 |
Farmland | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 2,378 | 2,884 |
Interest Income Recognized | 141 | 26 |
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 4,252 | 4,162 |
Interest Income Recognized | 51 | 102 |
Farmland | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Impaired loans without a valuation allowance: | ||
Average Recorded Investment | 746 | 694 |
Interest Income Recognized | 11 | 16 |
Impaired loans with valuation allowance: | ||
Average Recorded Investment | 512 | 595 |
Interest Income Recognized | $ 6 | $ 12 |
LOANS_ (Details 4)
LOANS: (Details 4) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Loans 30-59 Days Past Due | $ 6,459 | $ 10,519 |
Loans 60-89 Days Past Due | 1,662 | 1,886 |
Loans 90 or More Days Past Due | 1,841 | 3,474 |
Total Past Due Loans | 9,962 | 15,879 |
Current Loans | 478,802 | 452,750 |
Total loans and leases | 488,764 | 468,629 |
Real Estate [Member] | ||
Loans 30-59 Days Past Due | 6,339 | 10,370 |
Loans 60-89 Days Past Due | 1,652 | 1,871 |
Loans 90 or More Days Past Due | 1,834 | 3,360 |
Total Past Due Loans | 9,825 | 15,601 |
Current Loans | 420,681 | 400,715 |
Total loans and leases | 430,506 | 416,316 |
Commercial | ||
Loans 30-59 Days Past Due | 20 | |
Total Past Due Loans | 20 | |
Current Loans | 26,935 | |
Total loans and leases | 26,955 | |
Commercial | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 3,251 | 1,676 |
Loans 60-89 Days Past Due | 245 | 307 |
Loans 90 or More Days Past Due | 1,083 | |
Total Past Due Loans | 3,496 | 3,066 |
Current Loans | 105,971 | 100,265 |
Total loans and leases | 109,467 | 103,331 |
Construction and Land Development | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 367 | 103 |
Loans 60-89 Days Past Due | 17 | |
Loans 90 or More Days Past Due | 43 | 44 |
Total Past Due Loans | 410 | 164 |
Current Loans | 28,671 | 25,591 |
Total loans and leases | 29,081 | 25,755 |
Residential 1-4 Family | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 2,335 | 4,237 |
Loans 60-89 Days Past Due | 1,151 | 1,547 |
Loans 90 or More Days Past Due | 1,483 | 2,233 |
Total Past Due Loans | 4,969 | 8,017 |
Current Loans | 248,099 | 241,683 |
Total loans and leases | 253,068 | 249,700 |
Multifamily | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 98 | 1,367 |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | ||
Total Past Due Loans | 98 | 1,367 |
Current Loans | 14,489 | 11,215 |
Total loans and leases | 14,587 | 12,582 |
Farmland | Real Estate [Member] | ||
Loans 30-59 Days Past Due | 288 | 2,987 |
Loans 60-89 Days Past Due | 256 | |
Loans 90 or More Days Past Due | 308 | |
Total Past Due Loans | 852 | 2,987 |
Current Loans | 23,451 | 21,961 |
Total loans and leases | 24,303 | 24,948 |
Commercial Real Estate [Member] | ||
Loans 30-59 Days Past Due | 4 | 20 |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | ||
Total Past Due Loans | 4 | 20 |
Current Loans | 31,694 | 26,935 |
Total loans and leases | 31,698 | 26,955 |
Agriculture | ||
Loans 30-59 Days Past Due | 19 | |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | 78 | |
Total Past Due Loans | 97 | |
Current Loans | 3,683 | 3,067 |
Total loans and leases | 3,683 | 3,164 |
Consumer Installment Loans | ||
Loans 30-59 Days Past Due | 116 | 110 |
Loans 60-89 Days Past Due | 10 | 15 |
Loans 90 or More Days Past Due | 7 | 36 |
Total Past Due Loans | 133 | 161 |
Current Loans | 22,040 | 22,027 |
Total loans and leases | 22,173 | 22,188 |
Other Loans | ||
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 | 704 | 6 |
Total loans and leases | $ 704 | $ 6 |
LOANS_ (Details 5)
LOANS: (Details 5) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Total | $ 488,764 | $ 468,629 |
Real Estate [Member] | ||
Total | 430,506 | 416,316 |
Pass | ||
Total | 461,612 | 436,150 |
Special Mention | ||
Total | 11,965 | 14,173 |
Substandard | ||
Total | 15,187 | 18,306 |
Real Estate [Member] | Pass | ||
Total | 404,189 | 384,785 |
Real Estate [Member] | Special Mention | ||
Total | 11,674 | 13,482 |
Real Estate [Member] | Substandard | ||
Total | 14,643 | 18,049 |
Commercial Portfolio Segment [Member] | Pass | ||
Total | 30,942 | 26,197 |
Commercial Portfolio Segment [Member] | Special Mention | ||
Total | 260 | 691 |
Commercial Portfolio Segment [Member] | Substandard | ||
Total | 496 | 67 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Pass | ||
Total | 100,308 | 92,562 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Special Mention | ||
Total | 6,444 | 6,922 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Substandard | ||
Total | 2,715 | 3,847 |
Construction and Land Development | Real Estate [Member] | ||
Total | 29,081 | 25,755 |
Construction and Land Development | Real Estate [Member] | Pass | ||
Total | 27,813 | 23,905 |
Construction and Land Development | Real Estate [Member] | Special Mention | ||
Total | 980 | 1,531 |
Construction and Land Development | Real Estate [Member] | Substandard | ||
Total | 288 | 319 |
Residential 1-4 Family | Real Estate [Member] | ||
Total | 253,068 | 249,700 |
Residential 1-4 Family | Real Estate [Member] | Pass | ||
Total | 242,884 | 238,400 |
Residential 1-4 Family | Real Estate [Member] | Special Mention | ||
Total | 1,994 | 2,117 |
Residential 1-4 Family | Real Estate [Member] | Substandard | ||
Total | 8,190 | 9,183 |
Multifamily | Real Estate [Member] | ||
Total | 14,587 | 12,582 |
Multifamily | Real Estate [Member] | Pass | ||
Total | 12,902 | 10,848 |
Multifamily | Real Estate [Member] | Special Mention | ||
Total | 1,367 | |
Multifamily | Real Estate [Member] | Substandard | ||
Total | 1,685 | 367 |
Farmland | Real Estate [Member] | ||
Total | 24,303 | 24,948 |
Farmland | Real Estate [Member] | Pass | ||
Total | 20,282 | 19,070 |
Farmland | Real Estate [Member] | Special Mention | ||
Total | 2,256 | 1,545 |
Farmland | Real Estate [Member] | Substandard | ||
Total | 1,765 | 4,333 |
Agriculture | ||
Total | 3,683 | 3,164 |
Agriculture | Pass | ||
Total | 3,652 | 3,076 |
Agriculture | Special Mention | ||
Total | 28 | |
Agriculture | Substandard | ||
Total | 3 | 88 |
Consumer Installment Loans | ||
Total | 22,173 | 22,188 |
Consumer Installment Loans | Pass | ||
Total | 22,125 | 22,086 |
Consumer Installment Loans | Special Mention | ||
Total | 3 | |
Consumer Installment Loans | Substandard | ||
Total | 45 | 102 |
Other Loans | ||
Total | 704 | 6 |
Other Loans | Pass | ||
Total | 704 | 6 |
Commercial | ||
Total | 26,955 | |
Commercial | Real Estate [Member] | ||
Total | 109,467 | 103,331 |
Commercial Real Estate [Member] | ||
Total | $ 31,698 | $ 26,955 |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Balance, beginning of year | $ 6,072 | $ 7,493 | $ 7,493 |
Charge Offs | (492) | (1,450) | |
Recoveries | 727 | 529 | |
Provision for loan losses | (500) | (500) | |
Balance, End of period | 6,307 | 6,072 | |
Consumer Installment Loans | |||
Balance, beginning of year | 123 | 128 | 128 |
Charge Offs | (133) | (83) | |
Recoveries | 15 | 24 | |
Provision for loan losses | 160 | 54 | |
Balance, End of period | 165 | 123 | |
Commercial Real Estate [Member] | |||
Balance, beginning of year | 163 | 266 | 266 |
Charge Offs | (11) | (65) | |
Recoveries | 130 | 62 | |
Provision for loan losses | 109 | (100) | |
Balance, End of period | 391 | 163 | |
Unallocated | |||
Balance, beginning of year | 739 | 914 | 914 |
Provision for loan losses | (160) | (175) | |
Balance, End of period | 579 | 739 | |
Agriculture | |||
Balance, beginning of year | 31 | 124 | 124 |
Recoveries | 3 | 7 | |
Provision for loan losses | (9) | (100) | |
Balance, End of period | 25 | 31 | |
Other Loans | |||
Balance, beginning of year | 1 | 1 | |
Provision for loan losses | 5 | (1) | |
Balance, End of period | 5 | ||
Real Estate [Member] | |||
Balance, beginning of year | 5,016 | 6,060 | 6,060 |
Charge Offs | (348) | (1,302) | |
Recoveries | 579 | 436 | |
Provision for loan losses | (105) | (178) | |
Balance, End of period | 5,142 | 5,016 | |
Real Estate [Member] | Multifamily | |||
Balance, beginning of year | 241 | 232 | 232 |
Charge Offs | (18) | ||
Provision for loan losses | 221 | 27 | |
Balance, End of period | 462 | 241 | |
Real Estate [Member] | Commercial Real Estate [Member] | |||
Balance, beginning of year | 1,625 | 2,384 | 2,384 |
Charge Offs | (81) | (557) | |
Recoveries | 190 | 220 | |
Provision for loan losses | (173) | (422) | |
Balance, End of period | 1,561 | 1,625 | |
Real Estate [Member] | Residential 1-4 Family | |||
Balance, beginning of year | 2,376 | 2,437 | 2,437 |
Charge Offs | (267) | (720) | |
Recoveries | 33 | 87 | |
Provision for loan losses | 138 | 572 | |
Balance, End of period | 2,280 | 2,376 | |
Real Estate [Member] | Construction and Land Development | |||
Balance, beginning of year | 346 | 332 | 332 |
Charge Offs | (5) | ||
Recoveries | 26 | ||
Provision for loan losses | (42) | (7) | |
Balance, End of period | 304 | 346 | |
Real Estate [Member] | Farmland | |||
Balance, beginning of year | 428 | $ 675 | 675 |
Charge Offs | (2) | ||
Recoveries | 356 | 103 | |
Provision for loan losses | (249) | (348) | |
Balance, End of period | $ 535 | $ 428 |
ALLOWANCE FOR LOAN LOSSES (De42
ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for Loan Losses, Individually Evaluated for Impairment | $ 1,014 | $ 552 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 5,293 | 5,520 | |
Allowance for Loan Losses, Total | 6,307 | 6,072 | $ 7,493 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 12,292 | 14,401 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 476,472 | 454,228 | |
Recorded Investment in Loans, Total | 488,764 | 468,629 | |
Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 832 | 526 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 4,310 | 4,490 | |
Allowance for Loan Losses, Total | 5,142 | 5,016 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 11,768 | 14,275 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 418,738 | 402,041 | |
Recorded Investment in Loans, Total | 430,506 | 416,316 | |
Commercial Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 182 | 18 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 209 | 145 | |
Allowance for Loan Losses, Total | 391 | 163 | 266 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 497 | 67 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 31,201 | 26,888 | |
Recorded Investment in Loans, Total | 31,698 | 26,955 | |
Other Loans | |||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 5 | ||
Allowance for Loan Losses, Total | 5 | 1 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 704 | 6 | |
Recorded Investment in Loans, Total | 704 | 6 | |
Construction and Land Development | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 81 | 106 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 223 | 240 | |
Allowance for Loan Losses, Total | 304 | 346 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 215 | 245 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 28,866 | 25,510 | |
Recorded Investment in Loans, Total | 29,081 | 25,755 | |
Multifamily | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 216 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 246 | 241 | |
Allowance for Loan Losses, Total | 462 | 241 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 1,620 | 301 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 12,967 | 12,281 | |
Recorded Investment in Loans, Total | 14,587 | 12,582 | |
Agriculture | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 5 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 25 | 26 | |
Allowance for Loan Losses, Total | 25 | 31 | 124 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 18 | 24 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 3,665 | 3,140 | |
Recorded Investment in Loans, Total | 3,683 | 3,164 | |
Farmland | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 328 | 299 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 207 | 129 | |
Allowance for Loan Losses, Total | 535 | 428 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 1,786 | 4,486 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 22,517 | 20,462 | |
Recorded Investment in Loans, Total | 24,303 | 24,948 | |
Consumer Installment Loans | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 3 | ||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 165 | 120 | |
Allowance for Loan Losses, Total | 165 | 123 | 128 |
Recorded Investment in Loans, Individually Evaluated for Impairment | 9 | 35 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 22,164 | 22,153 | |
Recorded Investment in Loans, Total | 22,173 | 22,188 | |
Residential 1-4 Family | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 108 | 56 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 2,172 | 2,320 | |
Allowance for Loan Losses, Total | 2,280 | 2,376 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 4,421 | 4,416 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 248,647 | 245,284 | |
Recorded Investment in Loans, Total | 253,068 | 249,700 | |
Commercial | |||
Recorded Investment in Loans, Total | 26,955 | ||
Commercial | Real Estate [Member] | |||
Allowance for Loan Losses, Individually Evaluated for Impairment | 99 | 65 | |
Allowance for Loan Losses, Collectively Evaluated for Impairment | 1,462 | 1,560 | |
Allowance for Loan Losses, Total | 1,561 | 1,625 | |
Recorded Investment in Loans, Individually Evaluated for Impairment | 3,726 | 4,827 | |
Recorded Investment in Loans, Collectively Evaluated for Impairment | 105,741 | 98,504 | |
Recorded Investment in Loans, Total | 109,467 | 103,331 | |
Unallocated | |||
Allowance for Loan Losses, Collectively Evaluated for Impairment | 579 | 739 | |
Allowance for Loan Losses, Total | $ 579 | $ 739 | $ 914 |
TROUBLED DEBT RESTRUCTURINGS (D
TROUBLED DEBT RESTRUCTURINGS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)loans | Jun. 30, 2016USD ($)loans | Jun. 30, 2017USD ($)loans | Jun. 30, 2016USD ($)loans | |
# of Loans | loans | 1 | 1 | 1 | 2 |
Pre-Mod. Recorded Investment | $ 443 | $ 291 | $ 443 | $ 632 |
Post-Mod. Recorded Investment | $ 443 | $ 291 | $ 443 | $ 630 |
Real Estate [Member] | ||||
# of Loans | loans | 1 | 2 | ||
Pre-Mod. Recorded Investment | $ 291 | $ 632 | ||
Post-Mod. Recorded Investment | $ 291 | $ 630 | ||
Real Estate [Member] | Commercial Real Estate [Member] | ||||
# of Loans | loans | 1 | |||
Pre-Mod. Recorded Investment | $ 341 | |||
Post-Mod. Recorded Investment | $ 339 | |||
Real Estate [Member] | Farmland | ||||
# of Loans | loans | 1 | 1 | ||
Pre-Mod. Recorded Investment | $ 291 | $ 291 | ||
Post-Mod. Recorded Investment | $ 291 | $ 291 | ||
Commercial Real Estate [Member] | ||||
# of Loans | loans | 1 | 1 | ||
Pre-Mod. Recorded Investment | $ 443 | $ 443 | ||
Post-Mod. Recorded Investment | $ 443 | $ 443 |
TROUBLED DEBT RESTRUCTURINGS 44
TROUBLED DEBT RESTRUCTURINGS (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Troubled Debt Restructurings | ||
Total TDRs | $ 7,400 | $ 9,600 |
Period loan is considered to be in default, days | 90 days |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Real Estate [Abstract] | ||
Balance, beginning of year | $ 10,655 | $ 12,398 |
Additions | 2,071 | 4,577 |
Purchases of other real estate owned | 48 | |
Transfers of premises and equipment to other real estate owned | (125) | |
Transfers of other real estate owned to premises and equipment | (125) | |
Proceeds from sales of other real estate owned | (3,961) | (4,232) |
Loans made to finance sales of other real estate owned | (1,092) | (818) |
Adjustment of carrying value | (590) | (1,414) |
Deferred gain from sales | 44 | |
Gain (loss) from sales | (4) | 221 |
Balance, end of year | $ 7,248 | $ 10,655 |
FAIR VALUES_ (Details)
FAIR VALUES: (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Inputs, Level 2 [Member] | ||
Impaired Loans | $ 75,795 | $ 70,011 |
Fair Value, Inputs, Level 3 [Member] | ||
Other real estate owned | 7,248 | 10,655 |
Impaired Loans | 18,526 | 24,504 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Agencies | ||
Available for sale investments | 26,845 | 24,632 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | TaxableMunicipalsMember | ||
Available for sale investments | 2,315 | 2,292 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member] | ||
Available for sale investments | 5,090 | 3,749 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities | ||
Available for sale investments | 41,545 | 39,338 |
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate [Member] | ||
Impaired Loans | 315 | 49 |
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Consumer Installment Loans | ||
Impaired Loans | 9 | 32 |
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Agriculture | ||
Impaired Loans | 18 | 19 |
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Construction and Land Development | ||
Impaired Loans | 134 | 139 |
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Residential 1-4 Family | ||
Impaired Loans | 4,313 | 4,360 |
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Commercial Real Estate [Member] | ||
Impaired Loans | 3,627 | 4,762 |
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Multifamily | ||
Impaired Loans | 1,404 | 301 |
Nonrecurring Basis | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Farmland | ||
Impaired Loans | $ 1,458 | $ 4,187 |
FAIR VALUES_ (Details 1)
FAIR VALUES: (Details 1) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Impaired Loans | ||
Fair Value at March 31, 2017 | $ 11,278 | $ 13,849 |
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% | |
Other Real Estate Owned | ||
Fair Value at March 31, 2017 | $ 7,248 | $ 10,655 |
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% |
FAIR VALUES_ (Details 2)
FAIR VALUES: (Details 2) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Net Loans | $ 482,457 | $ 462,557 |
Time deposits | 267,596 | 247,819 |
Fair Value, Measurements, Recurring [Member] | ||
Net Loans | 475,354 | 467,707 |
Time deposits | 267,293 | 247,258 |
FHLB advances | 8,356 | 13,993 |
Fair Value, Inputs, Level 2 [Member] | ||
Net Loans | 473,957 | 453,858 |
Time deposits | 267,293 | 247,258 |
FHLB advances | 8,356 | 13,993 |
Fair Value, Inputs, Level 3 [Member] | ||
Net Loans | 11,278 | 13,849 |
Fair Value, Estimate Not Practicable, Carrying (Reported) Amount [Member] | ||
Net Loans | 482,457 | 462,557 |
Time deposits | 267,596 | 247,819 |
FHLB advances | $ 8,158 | $ 13,758 |