Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 18, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SBT Bancorp, Inc. | ||
Trading Symbol | sbtb | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 1,360,700 | ||
Entity Public Float | $ 20,856,147 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,354,174 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and due from banks | $ 8,933,000 | $ 10,118,000 |
Interest-bearing deposits with the Federal Reserve Bank and Federal Home Loan Bank | 19,795,000 | 9,696,000 |
Money market mutual funds | 13,000 | 1,000 |
Federal funds sold | 149,000 | 5,000 |
Cash and cash equivalents | 28,890,000 | 19,820,000 |
Certificates of deposit | 1,250,000 | |
Investments in available-for-sale securities | 71,517,000 | 83,805,000 |
Federal Home Loan Bank stock, at cost | 2,047,000 | 1,801,000 |
Loans held-for-sale | 2,167,000 | 5,374,000 |
Loans outstanding | 326,723,000 | 286,142,000 |
Less: allowance for loan losses | 3,028,000 | 2,761,000 |
Loans, net | 323,695,000 | 283,381,000 |
Premises and equipment, net | 1,420,000 | 1,460,000 |
Accrued interest receivable | 1,143,000 | 1,095,000 |
Other real estate owned | 105,000 | |
Bank owned life insurance | 7,389,000 | 7,184,000 |
Other assets | 5,262,000 | 4,815,000 |
Total other assets | 15,214,000 | 14,659,000 |
Total assets | 444,780,000 | 408,840,000 |
Deposits: | ||
Demand deposits | 135,580,000 | 117,261,000 |
Savings and NOW deposits | 179,775,000 | 177,158,000 |
Time deposits | 57,287,000 | 61,646,000 |
Total deposits | 372,642,000 | 356,065,000 |
Securities sold under agreements to repurchase | 1,915,000 | 3,921,000 |
Federal Home Loan Bank advances | 31,500,000 | 17,500,000 |
Long-term subordinated debt | 7,230,000 | |
Other liabilities | 1,751,000 | 1,882,000 |
Total liabilities | 415,038,000 | 379,368,000 |
Stockholders' equity: | ||
Common stock, no par value; authorized 2,000,000 shares; issued and outstanding 1,360,591 shares and 1,360,177 shares, respectively, at 12/31/15 and 898,105 shares and 897,691 shares, respectively, at 12/31/14 | 18,856,000 | 10,127,000 |
Retained earnings | 11,288,000 | 10,549,000 |
Treasury stock, 414 shares | (7,000) | (7,000) |
Unearned compensation - restricted stock awards | (206,000) | (207,000) |
Accumulated other comprehensive (loss) income | (189,000) | 22,000 |
Total stockholders' equity | 29,742,000 | 29,472,000 |
Total liabilities and stockholders' equity | $ 444,780,000 | 408,840,000 |
Series C Preferred Stock, Senior, Non-Cumulative Perpetual [Member] | ||
Stockholders' equity: | ||
Preferred stock, senior non-cumulative perpetual, Series C, no par; 9,000 shares issued and outstanding at December 31, 2014 | $ 8,988,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock, par value (in Dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized shares | 2,000,000 | 2,000,000 |
Common stock, shares issued | 1,360,591 | 898,105 |
Common stock, shares outstanding | 1,360,177 | 897,691 |
Treasury stock, shares | 414 | 414 |
Series C Preferred Stock, Senior, Non-Cumulative Perpetual [Member] | ||
Preferred stock, par value (in Dollars per share) | $ 0 | $ 0 |
Preferred stock, shares issued | 9,000 | 9,000 |
Preferred stock shares outstanding | 9,000 | 9,000 |
Consolidated statements of Inco
Consolidated statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 10,819 | $ 10,387 |
Investment securities | 1,627 | 1,825 |
Interest-bearing deposits | 38 | 45 |
Total interest and dividend income | 12,484 | 12,257 |
Interest expense: | ||
Interest on deposits | 615 | 849 |
Interest on securities sold under agreements to repurchase | 4 | 4 |
Interest on long-term debt | 61 | |
Interest on Federal Home Loan Bank advances | 48 | 18 |
Total interest expense | 728 | 871 |
Net interest and dividend income | 11,756 | 11,386 |
Provision for loan losses | 278 | 55 |
Net interest and dividend income after provision for loan losses | 11,478 | 11,331 |
Noninterest income: | ||
Service charges on deposit accounts | 400 | 474 |
Gain on available-for-sale securities, net of writedowns | 132 | 142 |
Mortgage banking activities | 1,201 | 581 |
Investment services fees and commissions | 216 | 237 |
Other service charges and fees | 769 | 731 |
Increase in cash surrender value of life insurance policies | 205 | 205 |
Other income | 199 | 100 |
Total noninterest income | 3,122 | 2,470 |
Noninterest expense: | ||
Salaries and employee benefits | 6,872 | 6,736 |
Occupancy expense | 1,394 | 1,358 |
Equipment expense | 399 | 443 |
Advertising and promotions | 442 | 594 |
Forms and supplies | 162 | 172 |
Professional fees | 571 | 538 |
Directors’ fees | 248 | 254 |
Correspondent charges | 255 | 205 |
FDIC assessment | 312 | 374 |
Data processing | 773 | 676 |
Internet banking costs | 208 | 215 |
Other expense | 1,314 | 1,435 |
Total noninterest expense | 12,950 | 13,000 |
Income before income taxes | 1,650 | 801 |
Income tax expense (benefit) | 241 | (4) |
Net income | 1,409 | 805 |
Net income available to common stockholders | $ 1,301 | $ 703 |
Earnings per common share (in Dollars per share) | $ 1.37 | $ 0.80 |
Earnings per common share, assuming dilution (in Dollars per share) | $ 1.36 | $ 0.79 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Net income | $ 1,409 | $ 805 | |
Other comprehensive (loss) income, net of tax: | |||
Net change in unrealized holding gain/ loss on securities available for sale | (189) | 2,684 | |
Reclassification adjustment for realized gains in net income (1) | [1],[2] | (139) | (150) |
Reclassification adjustment for writedowns of securities in net income (1) | [1] | 7 | 8 |
Other comprehensive (loss) income, before tax | (321) | 2,542 | |
Income tax expense (benefit) | 110 | (865) | |
Other comprehensive (loss) income, net of tax | (211) | 1,677 | |
Comprehensive income | $ 1,198 | $ 2,482 | |
[1] | Reclassification adjustments include realized securities gains and losses and writedowns of securities. The gains and losses have been reclassified out of other comprehensive (loss) income and affect certain captions in the consolidated statements of income as follows; the pre-tax amount is reflected in gain on available-for-sale securities, net of writedowns; the tax effect is included in income tax expense (benefit); and the after tax amount is included in net income. | ||
[2] | Reclassification adjustments include realized securities gains and losses and writedowns of securities. The gains and losses have been reclassified out of other comprehensive (loss) income and affect certain captions in the consolidated statements of income as follows; the pre-tax amount is reflected in writedowns and gain on sales of investments; the tax effect of $45,000 and $48,000 in December 31, 2015 and 2014, respectively, is included in income tax (benefit) expense; and the after tax amount is included in net income. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Series C Preferred Stock [Member]Preferred Stock [Member] | Common Stock [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Unallocated Employee Stock Ownership Plan [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance at Dec. 31, 2013 | $ 8,976 | $ 10,136 | $ 10,347 | $ (7) | $ (401) | $ (1,655) | $ 27,396 |
Net income | 805 | 805 | |||||
Other comprehensive income (loss), net of tax effect | 1,677 | 1,677 | |||||
Preferred stock dividend-SBLF | (90) | (90) | |||||
Preferred stock amortization (accretion) | 12 | (12) | |||||
Stock based compensation | 145 | 145 | |||||
Restricted stock awards | 41 | (41) | |||||
Forfeited restricted stock awards | (90) | 90 | |||||
Tax benefit - vested restricted stock awards | 1 | 1 | |||||
Common stock issued | 39 | 39 | |||||
Dividends declared common stock | (501) | (501) | |||||
Beginning balance at Dec. 31, 2014 | 8,988 | 10,127 | 10,549 | (7) | (207) | 22 | 29,472 |
Net income | 1,409 | 1,409 | |||||
Other comprehensive income (loss), net of tax effect | (211) | (211) | |||||
Preferred stock dividend-SBLF | (96) | (96) | |||||
Preferred stock amortization (accretion) | 12 | (12) | |||||
Stock based compensation | 10 | 178 | 188 | ||||
Restricted stock awards | 177 | (177) | |||||
Preferred stock redeemed | $ (9,000) | (9,000) | |||||
Common stock issued | 8,542 | 8,542 | |||||
Dividends declared common stock | (562) | (562) | |||||
Beginning balance at Dec. 31, 2015 | $ 18,856 | $ 11,288 | $ (7) | $ (206) | $ (189) | $ 29,742 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Dividends declared common stock | $ 0.56 | $ 0.56 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 1,409,000 | $ 805,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Amortization of securities, net | 396,000 | 401,000 |
Writedown of available-for-sale securities | 7,000 | 8,000 |
Gain on sales of available-for-sale securities | (139,000) | (150,000) |
Change in deferred origination costs, net | (37,000) | (80,000) |
Provision for loan losses | 278,000 | 55,000 |
Loans originated for sale | (79,946,000) | (44,593,000) |
Proceeds from sales of loans originated for sale | 84,354,000 | 42,580,000 |
Gain on sales of loans | (1,201,000) | (500,000) |
(Gain) loss on sales of other real estate owned | (9,000) | 1,000 |
Writedown of other real estate owned | 50,000 | |
Depreciation and amortization | 296,000 | 383,000 |
Accretion on impairment of operating lease | (26,000) | (44,000) |
Amortization of long-term debt issuance costs | 7,000 | |
Increase in other assets | (395,000) | (1,142,000) |
Increase in interest receivable | (48,000) | (21,000) |
Decrease in taxes receivable | 83,000 | 182,000 |
Deferred income tax benefit | (24,000) | (187,000) |
Increase in cash surrender value of bank owned life insurance | (205,000) | (205,000) |
Excess tax benefit related to stock based compensation | (1,000) | |
Stock based compensation | 188,000 | 145,000 |
(Decrease) increase in other liabilities | (120,000) | 315,000 |
Increase in interest payable | 15,000 | 44,000 |
Net cash provided by (used in) operating activities | 4,883,000 | (1,954,000) |
Cash flows from investing activities: | ||
Purchase of Federal Home Loan Bank Stock | (2,212,000) | (542,000) |
Redemption of Federal Home Loan Bank Stock | 1,966,000 | 937,000 |
Purchases of certificates of deposit | (1,250,000) | |
Purchases of available-for-sale securities | (6,334,000) | (4,146,000) |
Proceeds from maturities of available-for-sale securities | 15,826,000 | 8,361,000 |
Proceeds from sales of available-for-sale securities | 2,211,000 | 1,712,000 |
Loan originations and principal collections, net | (23,051,000) | 7,215,000 |
Loans purchased | (17,493,000) | (14,407,000) |
Recoveries of loans previously charged-off | (11,000) | 15,000 |
Proceeds from sales of other real estate owned | 114,000 | 540,000 |
Capital expenditures | (257,000) | (301,000) |
Purchase of bank owned life insurance | (250,000) | |
Net cash used in investing activities | (30,491,000) | (866,000) |
Cash flows from financing activities: | ||
Net increase in demand deposits, NOW and savings accounts | 20,936,000 | 4,904,000 |
Decrease in time deposits | (4,359,000) | (7,343,000) |
Net decrease in securities sold under agreements to repurchase | (2,006,000) | (469,000) |
Net change in short-term advances | 14,000,000 | (12,500,000) |
Proceeds from issuance of common stock | 8,542,000 | 39,000 |
Proceeds from the issuance of subordinated debt | 7,223,000 | |
Redemption of preferred stock | (9,000,000) | |
Excess tax benefit related to stock based compensation | 1,000 | |
Dividends paid - preferred stock | (96,000) | (90,000) |
Dividends paid - common stock | (562,000) | (492,000) |
Net cash provided by (used in) financing activities | 34,678,000 | (15,950,000) |
Net increase (decrease) in cash and cash equivalents | 9,070,000 | (18,770,000) |
Cash and cash equivalents at beginning of year | 19,820,000 | 38,590,000 |
Cash and cash equivalents at end of year | 28,890,000 | 19,820,000 |
Supplemental disclosures: | ||
Interest paid | 706,000 | 827,000 |
Income taxes paid | $ 182,000 | 1,000 |
Increase in common stock dividends held in escrow | 9,000 | |
Loans transferred to other real estate owned | $ 696,000 |
Note 1 - Nature of Operations
Note 1 - Nature of Operations | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Nature of Operations [Text Block] | NOTE 1 - NATURE OF OPERATIONS On March 2, 2006, The Simsbury Bank & Trust Company, Inc. (the “Bank”) reorganized into a holding company structure. As a result, the Bank became a wholly-owned subsidiary of SBT Bancorp, Inc. (the “Company”) and each outstanding share of common stock of the Bank was converted into the right to receive one share of the common stock, no par value, of the Company. The Company files reports with the Securities and Exchange Commission and is supervised by the Board of Governors of the Federal Reserve System. The Bank is a state chartered bank which was incorporated on April 28, 1992 and is headquartered in Simsbury, Connecticut. The Bank commenced operations on March 31, 1995 engaging principally in the business of attracting deposits from the general public and investing those deposits in securities, residential and commercial real estate, consumer and small business loans. |
Note 2 - Accounting Policies
Note 2 - Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 - ACCOUNTING POLICIES The accounting and reporting policies of the Company and its subsidiary conform to accounting principles generally accepted in the United States of America and predominant practices within the banking industry. The consolidated financial statements of the Company were prepared using the accrual basis of accounting. The significant accounting policies of the Company are summarized below to assist the reader in better understanding the consolidated financial statements and other data contained herein. USE OF ESTIMATES: The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term include the determination of the allowance for loan losses, valuation and potential other-than-temporary impairment (“OTTI”) of available-for-sale securities and the valuation of deferred tax assets. BASIS OF PRESENTATION: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, SBT Investment Services, Inc. and NERE Holdings, Inc. SBT Investment Services, Inc. was established solely for the purpose of providing investment products, financial advice and services to its clients and the community. NERE Holdings, Inc. was established to hold real estate. All significant intercompany accounts and transactions have been eliminated in the consolidation. CASH AND CASH EQUIVALENTS: For purposes of reporting cash flows, cash and cash equivalents include cash on hand, cash items, due from banks, Federal Home Loan Bank interest-bearing demand and overnight deposits, Federal Reserve Bank interest-bearing demand deposits, money market mutual funds and federal funds sold. Cash and due from banks as of December 31, 2015 and 2014 includes $5,657,000 and $6,585,000, respectively, which is subject to withdrawals and usage restrictions to satisfy the reserve requirements of the Federal Reserve Bank of Boston and Bankers’ Bank Northeast. CERTIFICATES OF DEPOSIT Certificates of deposit are issued by federally insured depository instituions, have an original maturity of greater than 90 days and up to 35 months and are carried at cost. SECURITIES: Investments in debt securities are adjusted for amortization of premiums and accretion of discounts computed so as to approximate the interest method. Gains or losses on sales of investment securities are computed on a specific identification basis. The Company classifies debt and equity securities into one of three categories: held-to-maturity, available-for-sale, or trading. These security classifications may be modified after acquisition only under certain specified conditions. In general, securities may be classified as held-to-maturity only if the Company has the positive intent and ability to hold them to maturity. Trading securities are defined as those bought and held principally for the purpose of selling them in the near term. All other securities must be classified as available-for-sale. -- Held-to-maturity securities are measured at amortized cost in the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings, or in a separate component of stockholders’ equity. They are merely disclosed in the notes to the consolidated financial statements. -- Available-for-sale securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings but are reported as a net amount (less expected tax) in a separate component of stockholders’ equity until realized. -- Trading securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses for trading securities are included in earnings. For any debt security with a fair value less than its amortized cost basis, the Company will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, the Company will recognize a full impairment charge to earnings. For all other debt securities that are considered other-than-temporarily impaired and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The other-than-temporary impairment related to all other factors will be recorded in other comprehensive income. Declines in marketable equity securities below their cost that are deemed other than temporary are reflected in earnings as realized losses. As a member of the Federal Home Loan Bank of Boston (FHLB), the Company is currently required to purchase and hold shares of capital stock in the FHLB of Boston in an amount equal to 0.35% of the Bank’s Membership Stock Investment Base plus an Activity Based Stock Investment Requirement. The Activity Based Stock Investment Requirement is equal to 3.0% of any outstanding principal for overnight advances, 4.0% of any outstanding principal for term advances with an original term of two days to three months and 4.5% of any outstanding principal for term advances with an original term greater than three months. The Bank is in compliance with these requirements. Based on its most recent analysis of the FHLB as of December 31, 2015, management deems its investment in FHLB stock to be not other-than-temporarily impaired. LOANS HELD-FOR-SALE: Loans held-for-sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses are provided for in a valuation allowance by charges to operations. Interest income on mortgages held-for-sale is accrued currently and classified as interest on loans. LOANS: Loans receivable that management has the intent and ability to hold until maturity or payoff, are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses and any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Interest on loans is recognized on a simple interest basis. Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount amortized as an adjustment of the related loan's yield. The Company is amortizing these amounts over the contractual lives of the related loans. Residential real estate loans are generally placed on nonaccrual when reaching 90 days past due or in process of foreclosure. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on nonaccrual status. Secured consumer loans are written down to realizable value and unsecured consumer loans are charged off upon reaching 120 or 180 days past due depending on the type of loan. Commercial real estate loans and commercial business loans and leases which are 90 days or more past due are generally placed on nonaccrual status, unless secured by sufficient cash or other assets immediately convertible to cash. When a loan has been placed on nonaccrual status, previously accrued and uncollected interest is reversed against interest on loans. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on an annual basis. A reporting system is in place which provides management with frequent reports related to loan quality, loan production, loan delinquencies and non-performing or potential problem loans. Commercial and industrial loans are underwritten after evaluating historical and projected profitability and cash flow to determine the borrower’s ability to repay their obligation as agreed. Underwriting standards are designed to promote relationship banking rather than transactional banking. Commercial and industrial loans are made primarily based on the identified cash flow of the borrower and secondarily on the underlying collateral supporting the loan facility. The cash flow of the borrower may not be as expected and the collateral supporting the loan may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable and inventory and may incorporate a personal guarantee. Some loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent upon the ability of the borrower to collect amounts due from its customers. Commercial real estate loans are subject to the underwriting standards and processes similar to commercial and industrial loans, in addition to those underwriting standards for real estate loans. These loans are viewed primarily as cash flow dependent and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher principal balances and longer repayment periods. Repayment of these loans is generally dependent upon the successful operation of the property securing the loan or the principal business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or the economy in general. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. This diversification reduces the exposure to adverse economic conditions that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk-rating criteria. The Company also utilizes third-party experts to provide environmental and market valuations, in addition to economic conditions and trends within a specific industry. The Company also tracks the level of owner occupied commercial real estate loans within its commercial real estate portfolio. With respect to land developers’ and builders’ loans that are secured by non-owner-occupied properties that the Company may originate from time to time, the Company generally requires that the borrower have a proven record of success. Construction loans are underwritten based upon a financial analysis of the developers and property owners and construction cost estimates, in addition to independent appraisal valuations. These loans will rely on the value associated with the project upon completion. These cost and valuation estimates may be inaccurate. Construction loans generally involve the disbursement of substantial funds over a short period of time with repayment substantially dependent upon the success of the completed project. Sources of repayment of these loans would be permanent financing upon completion or sales of developed property. These loans are closely monitored by on-site inspections and are considered to be of a higher risk than other real estate loans due to their ultimate repayment being sensitive to general economic conditions, availability of long-term financing, interest rate sensitivity, and governmental regulation of real property. The Company originates consumer loans utilizing a computer-based credit-scoring analysis to supplement the underwriting process. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed, jointly by staff and management. This continual review, coupled with the high volume of borrowers of smaller dollar loans, minimizes risk. Additionally, trend and outlook reports are reviewed by management on a regular basis. Underwriting standards for home equity loans are heavily influenced by regulatory requirements, which include, but are not limited to, a maximum loan-to-value of 75%, collection remedies, the number of such loans that a borrower can have at one time, and documentation requirements. The Company engages an independent loan review firm that reviews and validates the credit risk program on a periodic basis. Results of these reviews are presented to management and the Board of Directors. The loan review process complements and reinforces the risk identification process and assessment decisions made by the relationship managers and credit officer, as well as the Company’s policies and procedures. ALLOWANCE FOR LOAN LOSSES: The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. General Component: The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, construction and land development, commercial and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during 2015. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate and home equity: The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent without obtaining private mortgage insurance for any amounts over 80% and does not grant subprime loans. All loans in these segments are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Commercial real estate: Loans in this segment are primarily income-producing properties throughout the Farmington Valley and surrounding communities in Connecticut. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which, in turn, will have an effect on the credit quality in this segment. Management periodically obtains rent rolls annually and continually monitors the cash flows of these loans. Construction and land development loans: Loans in this segment primarily include speculative real estate development loans for which payment is derived from sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Commercial loans: Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Consumer loans: Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Allocated Component: The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan are lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are initially classified as impaired. Unallocated Component: An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. PREMISES AND EQUIPMENT: Premises and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in income or expense. Depreciation and amortization are calculated principally on the straight-line method over the estimated useful lives of the assets. Estimated lives are 3 to 20 years for furniture and equipment. Leasehold improvements are amortized over the lesser of the life of the lease or the estimated life of the improvements. OTHER REAL ESTATE OWNED AND IN-SUBSTANCE FORECLOSURES: Other real estate owned includes properties acquired through foreclosure and properties classified as in-substance foreclosures. These properties are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure or transfer, establishing a new cost basis. Subsequent to foreclosure or transfer, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Any writedown from cost to estimated fair value required at the time of foreclosure or classification as in-substance foreclosure is charged to the allowance for loan losses. Expenses incurred in connection with maintaining these assets, subsequent writedowns and gains or losses recognized upon sale are included in other expense. The Company classifies commercial loans as in-substance repossessed or foreclosed if the Company receives physical possession of the debtor’s assets regardless of whether formal foreclosure proceedings take place. An in-substance repossession or foreclosure occurs, and the Company is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either: (1) obtaining legal title to the residential real estate property upon completion of a foreclosure; or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. FAIR VALUES OF FINANCIAL INSTRUMENTS: ASC 825, “Financial Instruments,” requires that the Company disclose estimated fair values for its financial instruments. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows: Cash and cash equivalents: The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate those assets' fair values. Certificates of deposit: Fair values of certificates of deposit are estimated using discounted cash flows analyses based on the individual underlying instrument’s current rate of interest. Securities: Fair values for securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Loans held-for-sale: Fair values for loans held-for-sale are estimated based on outstanding investor commitments, or in the absence of such commitments, are based on current investor yield requirements. Loans receivable: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are estimated by discounting the future cash flows, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Accrued interest receivable: The carrying amount of accrued interest receivable approximates its fair value. Bank owned life insurance: The carrying amount of bank owned life insurance approximates its fair value. Deposit liabilities: The fair values disclosed for demand deposits, regular savings, NOW accounts, and money market accounts are equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Securities sold under agreements to repurchase: The carrying amounts of securities sold under agreements to repurchase approximate their fair values. Federal Home Loan Bank advances: Fair values of Federal Home Loan Bank advances are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Long-term subordinated debt: The fair value of long-term subordinated debt is estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Off-balance sheet instruments: The fair value of commitments to originate loans is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments and the unadvanced portion of loans, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligation with the counterparties at the reporting date. ADVERTISING: The Company directly expenses costs associated with advertising as they are incurred. During the years ended December 31, 2015 and 2014, $442,000 and $594,000, respectively, in advertising and promotion expenses were recognized. INCOME TAXES: The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company's assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. A valuation allowance against deferred tax assets is established when, based upon all available evidence, both positive and negative, it is determined that it is more likely than not that some or all of the deferred tax assets will not be realized. STOCK BASED COMPENSATION: At December 31, 2015, the Company has stock-based employee compensation plans which are described more fully in Note 19. The Company accounts for the plan under ASC 718-10, “Compensation - Stock Compensation - Overall.” During the years ended December 31, 2015 and 2014, $188,000 and $145,000, respectively, in stock-based employee compensation was recognized. EARNINGS PER SHARE: The Company defines unvested share-based payment awards that contain nonforfeitable rights to dividends as participating securities that are included in computing EPS using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Earnings per common share is calculated by dividing earnings allocated to common shareholders by the weighted-average number of common shares outstanding during the period. Basic EPS excludes dilution and is computed by dividing income allocated to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. RECENT ACCOUNTING PRONOUNCEMENTS: In 2012, the Financial Accounting Standards Board (the “FASB”) issued a proposed standard on accounting for credit losses. The standard would replace multiple existing impairment models, including replacing an “incurred loss” model for loans with an “expected loss” model. The FASB has recently announced an effective date of January 1, 2019, and final guidance is expected to be issued in the second quarter of 2016. The final standard may have a material impact on the Company’s retained earnings in the period of adoption. In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” The objective of this ASU is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements. In August 2015, the FASB issued ASU 2015-14 that defers by one year the effective date of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The standard is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The guidance should be applied on a retrospective basis. The Company adopted this ASU for the year ended December 31, 2015 in relation to its debt issuance costs. In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-7, "Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent) (a consensus of the FASB Emerging Issues Task Force)." This update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The Update also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient An entity should apply the Update on a retrospective basis. The Company intends to adopt the Update during the first quarter of 2016. Adoption is not anticipated to have a material impact on the Company's financial statements. In January 2016, the FASB issued Account |
Note 3 - Investments in Availab
Note 3 - Investments in Available-for-sale Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 3 - INVESTMENTS IN AVAILABLE-FOR-SALE SECURITIES Debt securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost basis of securities and their approximate fair values are as follows as of December 31, 2015 and 2014: Amortized Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value (In Thousands) December 31, 2015: Debt securities issued by U.S. government corporations and agencies $ 10,499 $ 6 $ 42 $ 10,463 Obligations of states and municipalities 14,258 447 36 14,669 Mortgage-backed securities 45,958 65 742 45,281 SBA loan pools 1,089 23 8 1,104 Money market mutual funds 13 - - 13 71,817 541 828 71,530 Money market mutual funds included in cash and other cash equivalents (13 ) - - (13 ) $ 71,804 $ 541 $ 828 $ 71,517 December 31, 2014: Debt securities issued by U.S. government corporations and agencies $ 18,202 $ 1 $ 139 $ 18,064 Obligations of states and municipalities 15,972 679 52 16,599 Mortgage-backed securities 49,157 140 629 48,668 SBA loan pools 440 34 - 474 Money market mutual funds 1 - - 1 83,772 854 820 83,806 Money market mutual funds included in cash and other cash equivalents (1 ) - - (1 ) $ 83,771 $ 854 $ 820 $ 83,805 The scheduled maturities of debt securities were as follows as of December 31, 2015: Fair Value (In Thousands) Due within one year $ 379 Due after one year through five years 18,528 Due after five years through ten years 4,693 Due after ten years 1,532 Mortgage-backed securities 45,281 SBA loan pools 1,104 $ 71,517 During 2015, proceeds from sales of available-for-sale securities amounted to $2,211,000. Gross realized gains on those sales amounted to $139,000. The tax expense applicable to these gross realized gains amounted to $47,000. During 2014, proceeds from sales of available-for-sale securities amounted to $1,712,000. Gross realized gains on those sales amounted to $150,000. The tax expense applicable to these gross realized gains amounted to $51,000. There were no securities of issuers that exceeded 10% of stockholders’ equity at December 31, 2015. As of December 31, 2015 and 2014, the total carrying amounts of securities pledged for securities sold under agreements to repurchase and public deposits were $14,319,000 and $17,271,000, respectively. The aggregate fair value and unrealized losses of securities that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more are as follows: Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Number of Value Losses Value Losses Value Losses Holdings (In Thousands) December 31, 2015: Debt securities issued by U.S. Government corporations and agencies $ 5,975 $ 24 $ 2,482 $ 18 $ 8,457 $ 42 17 SBA Loan Pools 760 8 - - 760 8 1 Obligations of states and municipalities 702 8 1,997 28 2,699 36 6 Mortgage-backed securities 22,125 255 17,463 461 39,588 716 62 Total temporarily impaired securities 29,562 295 21,942 507 51,504 802 86 Other-than-temporarily impaired securities: Mortgage-backed securities 15 - 219 26 234 26 4 Total temporarily impaired and other-than-temporarily impaired securities $ 29,577 $ 295 $ 22,161 $ 533 $ 51,738 $ 828 90 December 31, 2014: Debt securities issued by U.S. Government corporations and agencies $ 4,486 $ 12 $ 13,077 $ 127 $ 17,563 $ 139 36 Obligations of states and municipalities 526 12 1,772 40 2,298 52 5 Mortgage-backed securities 1,422 6 36,550 593 37,972 599 49 Total temporarily impaired securities 6,434 30 51,399 760 57,833 790 90 Other-than-temporarily impaired securities: Mortgage-backed securities - - 274 30 274 30 3 Total temporarily impaired and other-than-temporarily impaired securities $ 6,434 $ 30 $ 51,673 $ 790 $ 58,107 $ 820 93 The investments in the Company’s investment portfolio that are temporarily impaired as of December 31, 2015 consist of debt securities issued by states of the United States and political subdivisions of the states and U.S. government corporations and agencies and mortgage-backed securities. Company management considers investments with an unrealized loss as of December 31, 2015 to be temporarily impaired because the impairment is attributable to changes in market interest rates and current market inefficiencies. Company management anticipates that the fair value of securities that are currently impaired will recover to cost basis. As management has the intent and ability to hold these securities for the foreseeable future, no declines are deemed to be other than temporary. The following table summarizes other-than-temporary impairment losses on debt securities for the years ended December 31, 2015 and 2014: 2015 2014 Mortgage-Backed Securities Mortgage-Backed Securities (In Thousands) Total other-than-temporary impairment losses $ 33 $ 38 Less: unrealized other-than-temporary losses recognized in other comprehensive income/loss (1) (26 ) (30 ) Net impairment losses recognized in earnings (2) $ 7 $ 8 (1) Represents the noncredit component of the other-than-temporary impairment on the securities. (2) Represents the credit component of the other-than-temporary impairment on securities. Activity related to the credit component recognized in earnings on debt securities held by the Company for which a portion of other-than-temporary impairment was recognized in other comprehensive income for the year ended December 31, 2015 is as follows: Mortgage-Backed Securities (In Thousands) Balance, December 31, 2014 $ 37 Additions for the credit component on debt securities in which other-than-temporary impairment was previously recognized 7 Balance, December 31, 2015 $ 44 For the year ended December 31, 2015, securities with other-than-temporary impairment losses related to credit that were recognized in earnings consisted of three private label collateralized mortgage obligations (CMOs). The par value of these three securities were written down by $7,000 by the issuers. Activity related to the credit component recognized in earnings on debt securities held by the Company for which a portion of other-than-temporary impairment was recognized in other comprehensive loss for the year ended December 31, 2014 is as follows: Mortgage-Backed Securities (In Thousands) Balance, December 31, 2013 $ 29 Additions for the credit component on debt securities in which other-than-temporary impairment was previously recognized 8 Balance, December 31, 2014 $ 37 |
Note 4 - Loans
Note 4 - Loans | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 4 - LOANS Loans consisted of the following as of December 31: 2015 2014 (In Thousands) Real estate: Residential $ 138,628 $ 132,553 Commercial 62,118 46,982 Municipal 8,629 8,602 Construction and land development 10,070 13,234 Home equity 47,681 46,403 Commercial and industrial 35,305 19,038 Municipal 3,610 1,459 Consumer 19,350 16,576 325,391 284,847 Allowance for loan losses (3,028 ) (2,761 ) Deferred loan origination costs, net 1,332 1,295 Net loans $ 323,695 $ 283,381 The following tables set forth information regarding the allowance for loan losses by portfolio segment as of and for the years ended December 31, 2015 and 2014: Real Estate: Construction and Land Commercial Residential Commercial Development Home Equity and Industrial Consumer Unallocated Total (In Thousands) December 31, 2015: Allowance for loan losses: Beginning balance $ 1,085 $ 738 $ 249 $ 324 $ 227 $ 134 $ 4 $ 2,761 Charge-offs - - - - - (22 ) - (22 ) Recoveries - - - 2 3 6 - 11 (Benefit) provision (20 ) (32 ) 75 5 168 39 43 278 Ending balance $ 1,065 $ 706 $ 324 $ 331 $ 398 $ 157 $ 47 $ 3,028 Ending balance: Individually evaluated for impairment $ - $ - $ - $ - $ 2 $ - $ - $ 2 Ending balance: Collectively evaluated for impairment 1,065 706 324 331 396 157 47 3,026 Total allowance for loan losses ending balance $ 1,065 $ 706 $ 324 $ 331 $ 398 $ 157 $ 47 $ 3,028 Loans: Ending balance: Individually evaluated for impairment $ - $ 2,285 $ - $ - $ 363 $ - $ - $ 2,648 Ending balance: Collectively evaluated for impairment 138,628 68,462 10,070 47,681 38,552 19,350 - 322,743 Total loans ending balance $ 138,628 $ 70,747 $ 10,070 $ 47,681 $ 38,915 $ 19,350 $ - $ 325,391 Real Estate: Construction and Land Commercial Residential Commercial Development Home Equity and Industrial Consumer Unallocated Total (In Thousands) December 31, 2014: Allowance for loan losses: Beginning balance $ 1,189 $ 748 $ 211 $ 303 $ 239 $ 102 $ - $ 2,792 Charge-offs (93 ) - - - - (8 ) - (101 ) Recoveries 8 - - - 3 4 - 15 (Benefit) provision (19 ) (10 ) 38 21 (15 ) 36 4 55 Ending balance $ 1,085 $ 738 $ 249 $ 324 $ 227 $ 134 $ 4 $ 2,761 Ending balance: Individually evaluated for impairment $ - $ - $ - $ - $ 6 $ - $ - $ 6 Ending balance: Collectively evaluated for impairment 1,085 738 249 324 221 134 4 2,755 Total allowance for loan losses ending balance $ 1,085 $ 738 $ 249 $ 324 $ 227 $ 134 $ 4 $ 2,761 Loans: Ending balance: Individually evaluated for impairment $ 170 $ 860 $ - $ 3 $ 439 $ - $ - $ 1,472 Ending balance: Collectively evaluated for impairment 132,383 54,724 13,234 46,400 20,058 16,576 - 283,375 Total loans ending balance $ 132,553 $ 55,584 $ 13,234 $ 46,403 $ 20,497 $ 16,576 $ - $ 284,847 The following tables present the Company’s loans by risk rating as of December 31, 2015 and 2014: Real Estate: Construction and Land Commercial Residential Commercial Development Home Equity and Industrial Consumer Total (In Thousands) December 31, 2015: Grade: Pass $ - $ 64,823 $ 10,070 $ - $ 36,649 $ - $ 111,542 Special mention - 2,132 - - 216 - 2,348 Substandard 732 3,792 - 262 2,050 - 6,836 Loans not formally rated 137,896 - - 47,419 - 19,350 204,665 Total $ 138,628 $ 70,747 $ 10,070 $ 47,681 $ 38,915 $ 19,350 $ 325,391 December 31, 2014: Grade: Pass $ - $ 50,208 $ 11,529 $ - $ 18,380 $ - $ 80,117 Special mention - 3,866 1,705 - 642 - 6,213 Substandard 474 1,510 - 166 1,475 - 3,625 Loans not formally rated 132,079 - - 46,237 - 16,576 194,892 Total $ 132,553 $ 55,584 $ 13,234 $ 46,403 $ 20,497 $ 16,576 $ 284,847 Credit Quality Indicators The Company utilizes a risk rating grading matrix to assign a risk grade to each of its commercial loans. Loans are graded on a scale of 1 to 7. A description of each rating class is as follows: Risk Rating 1 (Superior) Risk Rating 2 (Good) Risk Rating 3 (Satisfactory) - Risk Rating 3.5 (Bankable with Care) Risk Rating 4 (Special Mention) Risk Rating 5 (Sub s tandard) Risk Rating 6 (Doubtful) Risk Rating 7 (Loss) Loans not formally rated include residential, home equity and consumer loans. As of December 31, 2015, $204.7 million of the total residential, home equity and consumer loan portfolio of $205.7 million were not formally rated. As of December 31, 2014, $194.9 million of the total residential, home equity and consumer loan portfolio of $195.5 million were not formally rated. The performance of these loans is measured by delinquency status. The Company underwrites first mortgage loans in accordance with FHLMC and FNMA guidelines. These guidelines provide for specific requirements with regard to documentation and loan to value and debt to income ratios. Home equity loan and line guidelines place a maximum loan to value ratio of 80% on these loans and the Company requires full underwriting disclosure documentation for these loans. These underwriting factors have produced a high performance loan portfolio. Total delinquent loans, consisting of loans past due 60 days or more, increased from 0.67% of total loans outstanding as of December 31, 2014 to 1.21% of total loans outstanding as of December 31, 2015. An age analysis of past-due loans, segregated by class of loans is as follows as of December 31, 2015 and 2014: 30-59 Days 60-89 Days 90 Days or More Past Due Total Past Due Total Current Total Loans 90 Days or More Past Due and Accruing Nonaccrual Loans (In Thousands) December 31, 2015: Real estate: Residential $ - $ 1,062 $ 594 $ 1,656 $ 136,972 $ 138,628 $ - $ 1,086 Commercial - - 1,668 1,668 60,450 62,118 - 2,285 Municipal - - - - 8,629 8,629 - - Construction and land development - - - - 10,070 10,070 - - Home equity 35 84 178 297 47,384 47,681 - 340 Commercial and industrial - - 363 363 34,942 35,305 - 363 Municipal - - - - 3,610 3,610 - - Consumer 47 7 5 59 19,291 19,350 - 5 Total $ 82 $ 1,153 $ 2,808 $ 4,043 $ 321,348 $ 325,391 $ - $ 4,079 December 31, 2014: Real estate: Residential $ 147 $ - $ 516 $ 663 $ 131,890 $ 132,553 $ - $ 1,064 Commercial - - 860 860 46,122 46,982 - 860 Municipal - - - - 8,602 8,602 - - Construction and land development - - - - 13,234 13,234 - - Home equity 328 - 77 405 45,998 46,403 - 165 Commercial and industrial - - 439 439 18,599 19,038 - 439 Municipal - - - - 1,459 1,459 - - Consumer 124 19 - 143 16,433 16,576 - - Total $ 599 $ 19 $ 1,892 $ 2,510 $ 282,337 $ 284,847 $ - $ 2,528 Information about loans that meet the definition of an impaired loan in ASC 310-10-35 is as follows as of and for the years ended December 31, 2015 and 2014: Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In Thousands) December 31, 2015: With no related allowance recorded: Real estate: Residential $ - $ - $ - $ - $ - Commercial 2,285 2,285 - 2,358 77 Construction and land development - - - - - Home equity - - - - - Commercial and industrial - - - - - Total impaired with no related allowance $ 2,285 $ 2,285 $ - $ 2,358 $ 77 With an allowance recorded: Residential $ - $ - $ - $ - $ - Commercial - - - - - Construction and land development - - - - - Home equity - - - - - Commercial and industrial 363 363 2 404 - Total impaired with an allowance recorded $ 363 $ 363 $ 2 $ 404 $ - Total Real estate: Residential $ - $ - $ - $ - $ - Commercial 2,285 2,285 - 2,358 77 Construction and land development - - - - - Home equity - - - - - Commercial and industrial 363 363 2 404 - Total impaired loans $ 2,648 $ 2,648 $ 2 $ 2,762 $ 77 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In Thousands) December 31, 2014: With no related allowance recorded: Real estate: Residential $ 170 $ 170 $ - $ 172 $ 5 Commercial 860 860 - 896 - Construction and land development - - - 133 56 Home equity 3 3 - 4 - Commercial and industrial - - - - - Total impaired with no related allowance $ 1,033 $ 1,033 $ - $ 1,205 $ 61 With an allowance recorded: Residential $ - $ - $ - $ - $ - Commercial - - - - - Construction and land development - - - - - Home equity - - - - - Commercial and industrial 439 439 6 372 - Total impaired with an allowance recorded $ 439 $ 439 $ 6 $ 372 $ - Total Real estate: Residential $ 170 $ 170 $ - $ 172 $ 5 Commercial 860 860 - 896 - Construction and land development - - - 133 56 Home equity 3 3 - 4 - Commercial and industrial 439 439 6 372 - Total impaired loans $ 1,472 $ 1,472 $ 6 $ 1,577 $ 61 The following tables set forth information regarding troubled debt restructured loans during the years ended December 31, 2015 and 2014: Pre-Modification Post- Modification Number of Outstanding Recorded Outstanding Recorded Contracts Investment Investment (Dollars In Thousands) December 31, 2015: Troubled Debt Restructurings: Commercial and industrial 1 $ 363 $ 363 1 $ 363 $ 363 Pre-Modification Post- Modification Number of Outstanding Recorded Outstanding Recorded Contracts Investment Investment (Dollars In Thousands) December 31, 2014: Troubled Debt Restructurings: Commercial and industrial 1 $ 439 $ 439 1 $ 439 $ 439 There was one commercial loan that was modified as a troubled debt restructuring during the year ended December 31, 2015. The loan, with a recorded investment of $363,000 as of December 31, 2015, had its payment temporarily reduced as part of the modification. The loan was individually evaluated for impairment as of December 31, 2015 and it was determined that a $2,000 specific allowance allocation was required. The loan was on nonaccrual status as of December 31, 2015. There was one commercial loan that was modified as a troubled debt restructuring during the year ended December 31, 2014. The loan, with a recorded investment of $439,000 as of December 31, 2014, had its payment temporarily reduced as part of the modification. The loan was individually evaluated for impairment as of December 31, 2015 and it was determined that a $6,000 specific allowance allocation was required. The loan was on nonaccrual status as of December 31, 2014. There were no loans modified as a troubled debt restructure during the years ended December 31, 2015 and 2014 that subsequently defaulted within one year of modification. As of December 31, 2015 and 2014, there were no commitments to lend additional funds to borrowers whose loans were modified in a troubled debt restructuring. As of December 31, 2015, there were no foreclosed residential real estate properties held by the Company. The recorded investment in consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure according to local requirements of the applicable jurisdiction amounted to $315,000 at December 31, 2015. The balance of mortgage servicing rights included in other assets at December 31, 2015 and 2014 was $2,039,000 and $1,577,000, respectively. Mortgage servicing rights of $1,069,000 and $531,000 were capitalized in 2015 and 2014, respectively. Amortization of mortgage servicing rights was $596,000 in 2015 and $401,000 in 2014. The fair value of these rights was $2,715,000 and $2,049,000 as of December 31, 2015 and 2014, respectively. Following is an analysis of the aggregate changes in the valuation allowance for mortgage servicing rights for the years ended December 31: 2015 2014 (In Thousands) Balance, beginning of year $ 9 $ 42 Additions 52 5 Reductions (41 ) (38 ) Balance, end of year $ 20 $ 9 Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were $255,196,000 and $176,579,000 as of December 31, 2015 and 2014, respectively. |
Note 5 - Premises and Equipment
Note 5 - Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 5 - PREMISES AND EQUIPMENT The following is a summary of premises and equipment as of December 31: 2015 2014 (In Thousands) Leasehold improvements $ 1,082 $ 1,389 Furniture and equipment 3,232 3,105 4,314 4,494 Accumulated depreciation and amortization (2,894 ) (3,034 ) $ 1,420 $ 1,460 |
Note 6 - Deposits
Note 6 - Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | NOTE 6 - DEPOSITS The aggregate amount of time deposit accounts in denominations that meet or exceed the Federal Deposit Insurance Corporation (FDIC) insurance limit (currently $250,000) at December 31, 2015 and 2014 was $11,356,000, and $11,160,000, respectively. For time deposits as of December 31, 2015, the scheduled maturities for years ending December 31 are: (In Thousands) 2016 $ 36,959 2017 10,117 2018 4,416 2019 2,975 2020 2,820 Total $ 57,287 At December 31, 2015, the Company had brokered certificates of deposit included in the table above totaling $1,268,000. As of December 31, 2015, the Bank had one depositor with total deposits of $24.5 million or 6.59% of the Company’s total deposits. As of December 31, 2014, the Bank had one depositor with total deposits of $22.5 million or 6.32% of the Company’s total deposits. |
Note 7 - Securities Sold Under
Note 7 - Securities Sold Under Agreements to Repurchase | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block] | NOTE 7 - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase consist of funds borrowed from customers on a short-term basis secured by portions of the Company's investment portfolio. The securities which were sold have been accounted for not as sales but as borrowings. The securities consisted of debt securities issued by U.S. government sponsored enterprises, corporations and agencies and states and municipalities. The securities were held in safekeeping by the Federal Home Loan Bank and Merrill Lynch, under the control of the Company. The purchasers have agreed to sell to the Company substantially identical securities at the maturity of the agreements. The agreements mature generally within three months from date of issue. |
Note 8 - Federal Home Loan Bank
Note 8 - Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Federal Home Loan Bank Advances, Disclosure [Text Block] | NOTE 8 - FEDERAL HOME LOAN BANK ADVANCES Advances consist of funds borrowed from the Federal Home Loan Bank of Boston (FHLB). There were $31,500,000 in FHLB advances outstanding as of December 31, 2015. All advances outstanding at December 31, 2015 mature in January 2016. The weighted average interest rate on these borrowings is 0.44%. There were $17,500,000 in FHLB advances outstanding as of December 31, 2014. All advances outstanding at December 31, 2014 matured in January 2015. The weighted average interest rate on these borrowings was 0.23%. Borrowings from the FHLB are secured by a blanket lien on qualified collateral, consisting primarily of loans with first mortgages secured by one to four family properties and other qualified assets. The Company has a line of credit with the FHLB in the amount of $1,525,000 at December 31, 2015 |
Note 9 - Subordinated Debenture
Note 9 - Subordinated Debentures | 12 Months Ended |
Dec. 31, 2015 | |
Subordinated Borrowings [Abstract] | |
Subordinated Borrowings Disclosure [Text Block] | NOTE 9 – SUBORDINATED DEBENTURES On October 15, 2015 (the “Closing Date”), the Company closed on the issuance of an unsecured subordinated term note in the aggregate principal amount of $7,500,000 due October 1, 2025 (the “Subordinated Note”) to Community Funding CLO, Ltd. (“Community Funding”) pursuant to a Subordinated Loan Agreement, dated as of September 30, 2015 (the “Loan Agreement”), by and between the Company and Community Funding. The Company used the net proceeds of approximately $7.2 million after closing costs of $277,000, from the issuance of the Subordinated Note (i) to redeem the 9,000 shares of the Company’s Senior Non-Cumulative Perpetual Preferred Stock, Series C, that the Company issued to the United States Department of the Treasury as part of the Company’s participation in the Small Business Lending Fund program, (ii) to support the growth of the Bank, including the Bank's expansion into the West Hartford, Connecticut market through the opening of a new branch office and the growth of the Bank’s loan portfolio, and (iii) for other general corporate purposes. The Loan Agreement provides that the Subordinated Note will bear interest at a fixed rate of 6.75% per annum, provided, however, that for the period beginning immediately after the Closing Date through, but not including, February 11, 2016, Community Funding will rebate an amount equal to 3.40% per annum to the Company, resulting in a rate of 3.35% per annum to the Company, net of any payments of interest made by the Company, so long as no event of default has occurred or is occurring during such period. Interest on the Subordinated Note is payable by the Company quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, commencing on the first such date following the Closing Date and on the maturity date. The principal amount of the Subordinated Note is due on October 1, 2025, provided, however, that the Company may prepay all or a portion of the principal amount of the Subordinated Note on or after the fifth anniversary of the Closing Date. Prior to the fifth anniversary of the Closing Date, the Company can prepay all or a portion of the principal amount of the Subordinated Note only under limited specified circumstances set forth in the Loan Agreement. The Loan Agreement contains customary events of default such as the institution of bankruptcy proceedings by or against the Company and the non-payment by the Company of principal or interest when due. Community Funding may accelerate the repayment of the Subordinated Note only in the event that bankruptcy proceedings are instituted by or against the Company and not for any other event of default. The Loan Agreement includes customary representations, warranties and covenants by the Company. The Company also agreed to indemnify Community Funding and its affiliates against liabilities arising from any breach of representations, warranties and covenants made by the Company under the Loan Agreement or any action instituted against Community Funding and its affiliates by any shareholder of the Company or other third party with respect to the transactions contemplated by the Loan Agreement. The initial closing costs of $277,000 are being amortized over the 10 year term of the Loan Agreement into interest expense. At December 31, 2015, there were approximately $270,000 in closing costs remaining to be amortized. |
Note 10 - Income Taxes
Note 10 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 10 - INCOME TAXES The components of income tax expense (benefit) are as follows for the years ended December 31: 2015 2014 (In Thousands) Current: Federal $ 264 $ 181 State 1 2 265 183 Deferred: Federal (24 ) (187 ) State - - (24 ) (187 ) Total income tax expense (benefit) $ 241 $ (4 ) The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows for the years ended December 31: 2015 2014 % of % of Income Income Federal income tax at statutory rate 34.0 % 34.0 % Increase (decrease) in tax resulting from: Tax-exempt income (20.6 ) (38.0 ) Other 1.2 3.5 Effective tax rates 14.6 % (0.5 ) % The Company had gross deferred tax assets and gross deferred tax liabilities as follows as of December 31: 2015 2014 (In Thousands) Deferred tax assets: Allowance for loan losses $ 910 $ 816 Deferred compensation 273 243 Impairment of operating lease - 9 Write-down of securities 15 10 Write-down of OREO - 17 Restricted stock awards 23 7 Charitable contribution carryover 166 120 Other 79 123 Alternative minimum tax carryforward 761 634 Net unrealized holding loss on available-for-sale securities 98 - Gross deferred tax assets 2,325 1,979 Deferred tax liabilities: Depreciation (358 ) (307 ) Deferred loan costs/fees (453 ) (437 ) Mortgage servicing rights (693 ) (536 ) Net unrealized holding gain on available-for-sale securities - (12 ) Gross deferred tax liabilities (1,504 ) (1,292 ) Net deferred tax asset (included in other assets) $ 821 $ 687 Deferred tax assets as of December 31, 2015 and 2014 have not been reduced by a valuation allowance because management believes that it is more likely than not that the full amount of deferred taxes will be realized. As of December 31, 2015, the Company had no operating loss carryovers for income tax purposes. It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. As of December 31, 2015 and 2014, there were no material uncertain tax positions related to federal and state income tax matters. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the years ended December 31, 2012 through December 31, 2015. In January of 2011, the Bank formed a subsidiary Passive Investment Company (PIC). Under State of Connecticut statutes, such a company is not subject to Connecticut corporation business taxes. Provided that the Bank meets the mandated statutory requirements, the Company’s Connecticut corporation business taxes should be significantly reduced or eliminated. |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 11 - COMMITMENTS AND CONTINGENT LIABILITIES As of December 31, 2015 the Company was obligated under non-cancelable operating leases for bank premises and equipment expiring between June 2016 and January 2026. Certain leases contain renewal options. The cost of such renewals is not included below. The total minimum rental due in future periods under these existing agreements is as follows as of December 31, 2015: (In Thousands) 2016 $ 1,018 2017 1,004 2018 977 2019 914 2020 1,339 Thereafter 550 Total $ 5,802 Certain leases contain provisions for escalation of minimum lease payments contingent upon percentage increases in the consumer price index. Total rental expense amounted to $936,000 and $935,000 for the years ended December 31, 2015 and 2014, respectively. On November 28, 2008, the Company entered into an agreement with its data processing servicer with an initial five-year term. A second amendment to this November 2008 agreement was signed between the parties on June 27, 2013 that extends the agreement through April 19, 2019. Under the agreement, the Company must pay a termination fee as described in the agreement if the Company terminates the agreement with notice, before the end of this extended agreement. |
Note 12 - Fair Value Measuremen
Note 12 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE 12 - FAIR VALUE MEASUREMENTS ASC 820-10, “Fair Value Measurement - Overall,” provides a framework for measuring fair value under generally accepted accounting principles. This guidance also allows an entity the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on a contract-by-contract basis. In accordance with ASC 820-10, the Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 - Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Level 1 also includes U.S. Treasury, other U.S. Government and agency mortgage-backed securities that are traded by dealers or brokers in active markets. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 - Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities. Level 3 - Valuations for assets and liabilities that are derived from other methodologies, including option pricing models, discounted cash flow models and similar techniques, are not based on market exchange, dealer, or broker traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets and liabilities. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company did not have any significant transfers of assets between Level 1 and Level 2 of the fair value hierarchy during the year ended December 31, 2015. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value for December 31, 2015 and 2014. The Company’s investment in obligations of states and municipalities, mortgage-backed securities and other debt securities available-for-sale are generally classified within Level 2 of the fair value hierarchy. For these securities, we obtain fair value measurements from independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information, and the instrument’s terms and conditions. Level 3 is for positions that are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence. In the absence of such evidence, management’s best estimate is used. Subsequent to inception, management only changes Level 3 inputs and assumptions when corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalization and other transactions across the capital structure, offerings in the equity or debt markets, and changes in financial ratios or cash flows. The Company’s impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using Level 2 inputs based upon appraisals of similar properties obtained from a third party. For Level 3 inputs, fair values are based on management estimates. Other real estate owned values are estimated using Level 2 inputs based upon appraisals of similar properties obtained from a third party. For Level 3 inputs, fair values are based on management estimates. The following summarizes assets measured at fair value as of December 31: ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS Fair Value Measurements at Reporting Date Using: Total Level 1 Level 2 Level 3 (In Thousands) December 31, 2015: Debt securities issued by U.S. government corporations and agencies $ 10,463 $ - $ 10,463 $ - Obligations of states and municipalities 14,669 - 14,669 - Mortgage-backed securities 45,281 - 45,281 - SBA loan pools 1,104 - 1,104 - Totals $ 71,517 $ - $ 71,517 $ - Fair Value Measurements at Reporting Date Using: Total Level 1 Level 2 Level 3 (In Thousands) December 31, 2014: Debt securities issued by U.S. government corporations and agencies $ 18,064 $ - $ 18,064 $ - Obligations of states and municipalities 16,599 - 16,599 - Mortgage-backed securities 48,668 - 48,668 - SBA loan pools 474 - 474 - Totals $ 83,805 $ - $ 83,805 $ - Under certain circumstances we make adjustments to fair value for our assets and liabilities although they are not measured at fair value on an ongoing basis. The following table presents the assets carried on the consolidated balance sheet by caption and by level in the fair value hierarchy, at December 31, 2015 and 2014, for which a nonrecurring change in fair value has been recorded: ASSETS MEASURED AT FAIR VALUE ON A NONRECURRING BASIS Fair Value Measurements at Reporting Date Using: Total Level 1 Level 2 Level 3 Writedowns (In Thousands) December 31, 2015: Impaired loans $ 240 $ - $ - $ 240 $ - Totals $ 240 $ - $ - $ 240 $ - December 31, 2014: Impaired loans $ 244 $ - $ - $ 244 $ 43 Other real estate owned 105 - - 105 50 Totals $ 349 $ - $ - $ 349 $ 93 The estimated fair values of the Company’s financial instruments, all of which are held or issued for purposes other than trading, are as follows as of December 31: December 31, 2015 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In Thousands) Financial assets: Cash and cash equivalents $ 28,890 $ 28,890 $ - $ - $ 28,890 Certificates of deposit 1,250 1,250 - - 1,250 Available-for-sale securities 71,517 - 71,517 - 71,517 Federal Home Loan Bank stock 2,047 2,047 - - 2,047 Loans held-for-sale 2,167 - - 2,187 2,187 Loans, net 323,695 - - 322,596 322,596 Accrued interest receivable 1,143 1,143 - - 1,143 Bank owned life insurance 7,389 - 7,389 - 7,389 Financial liabilities: Deposits 372,642 - 363,752 - 363,752 Securities sold under agreements to repurchase 1,915 - 1,915 - 1,915 Long-term debt 7,230 - 7,339 - 7,339 Federal Home Loan Bank advances 31,500 - 31,500 - 31,500 December 31, 2014 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In Thousands) Financial assets: Cash and cash equivalents $ 19,820 $ 19,820 $ - $ - $ 19,820 Available-for-sale securities 83,805 - 83,805 - 83,805 Federal Home Loan Bank stock 1,801 1,801 - - 1,801 Loans held-for-sale 5,374 - - 5,499 5,499 Loans, net 283,381 - - 285,832 285,832 Accrued interest receivable 1,095 1,095 - - 1,095 Bank owned life insurance 7,184 - 7,184 - 7,184 Financial liabilities: Deposits 356,065 - 356,353 - 356,353 Securities sold under agreements to repurchase 3,921 - 3,921 - 3,921 Federal Home Loan Bank advances 17,500 - 17,500 - 17,500 The carrying amounts of financial instruments shown in the above table are included in the consolidated balance sheets under the indicated captions. Accounting policies related to financial instruments are described in Note 2. Management has made estimates of fair value discount rates that it believes to be reasonable; however, because there is no market for many of these financial instruments, management has no basis to determine whether the fair value presented above would be indicative of the value negotiated in an actual sale. Fair value estimates are made at a specific point in time, based on the relevant market information and information about the financial instrument. These values do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgements regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgement and therefore cannot be determined with precision. Changes in assumptions could significantly affect these estimates. Fair value estimates are based on existing financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial instruments include premises and equipment and other real estate owned. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. |
Note 13 - Financial Instruments
Note 13 - Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Financial Instruments Disclosure [Text Block] | NOTE 13 - FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company is party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to originate loans, unadvanced funds on loans and standby letters of credit. The instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheets. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments is represented by the contractual amounts of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to originate loans are agreements to lend to a customer provided there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation of the borrower. Collateral held varies, but may include secured interests in mortgages, accounts receivable, inventory, property, plant and equipment and income-producing properties. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance by a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. As of December 31, 2015 and 2014, the maximum potential amount of the Company’s obligation was $3,391,000 and $1,888,000, respectively for financial and standby letters of credit. The Company’s outstanding letters of credit generally have a term of less than one year. If a letter of credit is drawn upon, the Company may seek recourse through the customer’s underlying line of credit. If the customer’s line of credit is also in default, the Company may take possession of the collateral, if any, securing the line of credit. Notional amounts of financial instrument liabilities with off-balance sheet credit risk are as follows as of 2015 2014 (In Thousands) Commitments to originate loans $ 40,708 $ 17,151 Standby letters of credit 3,391 1,888 Unadvanced portions of loans: Construction loans 15,647 6,960 Commercial lines of credit 20,580 17,394 Consumer 621 677 Home equity lines of credit 47,650 45,005 $ 128,597 $ 89,075 There is no material difference between the notional amounts and the estimated fair values of the above off-balance sheet liabilities. |
Note 14 - Related Party Transac
Note 14 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 14 - RELATED PARTY TRANSACTIONS Certain directors and executive officers of the Company and companies in which they have significant ownership interest were customers of the Bank during 2015. Total loans to such persons and their companies amounted to $4,559,000 as of December 31, 2015, of which $1,334,000 was participated out to another financial institution. During the year ended December 31, 2015, principal payments totaled $1,026,000 and advances amounted to $1,336,000. Deposits from related parties held by the Company as of December 31, 2015 and 2014 amounted to $5,950,000 and $6,625,000, respectively. During 2015 and 2014, the Company paid $80,000 and $90,000, respectively, for rent and related expenses of the Company’s Granby branch office to a company of which a bank director is a principal. The rent expense for the Granby branch included in Note 11 amounted to $60,000 in 2015 and $65,000 in 2014. |
Note 15 - Significant Group Con
Note 15 - Significant Group Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | NOTE 1 5 - SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK Most of the Company's business activity is with customers located within the state of Connecticut. There are no concentrations of credit to borrowers that have similar economic characteristics. The majority of the Company's loan portfolio is comprised of loans collateralized by real estate located in the state of Connecticut. |
Note 16 - Other Comprehensive (
Note 16 - Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 16 - OTHER COMPREHENSIVE (LOSS) INCOME Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the stockholders’ equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss). The activity in other comprehensive (loss) income, included in stockholders’ equity, is as follows during the years ended December 31: 2015 2014 In Thousands Net change in unrealized holding gain/loss on securities available-for-sale $ (189 ) $ 2,684 Reclassification adjustment for realized gains in net income (1) (132 ) (142 ) Other comprehensive (loss) income, before tax (321 ) 2,542 Income tax benefit (expense) 110 (865 ) Other comprehensive (loss) income, net of tax $ (211 ) $ 1,677 (1) Reclassification adjustments include realized securities gains and losses and writedowns of securities. The gains and losses have been reclassified out of other comprehensive (loss) income and affect certain captions in the consolidated statements of income as follows; the pre-tax amount is reflected in writedowns and gain on sales of investments; the tax effect of $45,000 and $48,000 in December 31, 2015 and 2014, respectively, is included in income tax (benefit) expense; and the after tax amount is included in net income. Accumulated other comprehensive (loss) income as of December 31, 2015 and 2014 consists of net unrealized holding (losses) gains on available-for-sale securities, net of taxes. |
Note 17 - Regulatory Matters
Note 17 - Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | NOTE 17 - REGULATORY MATTERS The Bank is subject to various regulatory capital requirements administered by the 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 the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Banks’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Effective January 1, 2015 (with a phase-in period of two to four years for certain components), the Bank became subject to new capital regulations adopted by the FRB and the FDIC, which implement the Basel III regulatory capital reforms and the changes required by the Dodd-Frank Act. The new regulations require a new common equity Tier 1 (“CETI”) capital ratio of 4.5%, increase the minimum Tier 1 capital to risk-weighted assets ratio to 6.0% from 4.0%, require a minimum total capital to risk-weighted assets ratio of 8.0% and require a minimum Tier 1 leverage ratio of 4.0%. CETI generally consists of common stock and retained earnings, subject to applicable adjustments and deductions. Under new prompt corrective action regulations, in order to be considered “well capitalized,” the Bank must maintain a CETI capital ratio of 6.5% (new) and a Tier 1 ratio of 8.0% (increased from 6.0%), a total risk based capital ratio of 10% (unchanged) and a Tier 1 leverage ratio of 5.0% (unchanged). In addition, the regulations establish a capital conservation buffer above the required capital ratios that phases in beginning January 1, 2016 at 0.625% of risk-weighted assets and increases each year by 0.625% until it is fully phased in at 2.5% effective January 1, 2019. Beginning January 1, 2016, failure to maintain the capital conservation buffer will limit the ability of the Bank and the Company to pay dividends, repurchase shares or pay discretionary bonuses. The new regulations implemented changes to what constitutes regulatory capital. Certain instruments will no longer constitute qualifying capital, subject to phase-out periods. In addition, Tier 2 capital is no longer limited to the amount of Tier 1 capital included in total capital. Mortgage servicing rights, certain deferred tax assets and investments in unconsolidated subsidiaries over designated percentages of CETI will be deducted from capital. The Bank has elected to permanently opt-out of the inclusion of accumulated other comprehensive income in capital calculations, as permitted by the regulations. This opt-out will reduce the impact of market volatility on the Bank’s regulatory capital ratios. The new regulations also changed the risk weights of certain assets, including an increase in the risk weight of certain high volatility commercial real estate acquisition, development and construction loans and non-residential mortgage loans that are 90 days past due or on non-accrual status to 150% from 100%, a credit conversion factor for the unused portion of commitments with maturities of less than one year that are not cancellable to 20% from 0%, an increase in the risk weight for mortgage servicing rights and deferred tax assets that are not deducted from capital to 250% from 100%, and an increase in the risk weight for equity exposures to 600% from 0%. As of December 31, 2015, the most recent notification from the FDIC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The Bank’s actual capital amounts and ratios are also presented in the table under the regulatory capital rules then in effect. To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars In Thousands) As of December 31, 2015: Total Capital (to Risk Weighted Assets) $ 39,262 14.21 % $ 22,107 8.0 % $ 27,634 10.0 % Tier 1 Capital (to Risk Weighted Assets) 36,234 13.11 16,580 6.0 22,107 8.0 Common Equity Tier 1 capital (to Risk Weighted Assets) 36,234 13.11 12,435 4.5 17,962 6.5 Tier 1 Capital (to Average Assets) 36,234 8.58 16,902 4.0 21,127 5.0 As of December 31, 2014: Total Capital (to Risk Weighted Assets) 31,675 12.80 19,791 8.0 24,739 10.0 Tier 1 Capital (to Risk Weighted Assets) 28,914 11.69 9,895 4.0 14,843 6.0 Tier 1 Capital (to Average Assets) 28,914 7.17 16,137 4.0 20,171 5.0 The declaration of cash dividends is dependent on a number of factors, including regulatory limitations, and the Company's operating results and financial condition. The stockholders of the Company will be entitled to dividends only when, and if, declared by the Company's Board of Directors out of funds legally available therefor. The declaration of future dividends will be subject to favorable operating results, financial conditions, tax considerations, and other factors. Under Connecticut law, the Bank may pay dividends only out of net profits. The Connecticut Banking Commissioner’s approval is required for dividend payments which exceed the current year’s net profits and retained net profits from the preceding two years. As of December 31, 2015, the Bank is restricted from declaring dividends to the Company in an amount greater than $2,109,000. |
Note 18 - Employee Benefits
Note 18 - Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 18 - EMPLOYEE BENEFITS The Company sponsors a 401(k) savings and retirement plan. Employees who are 21 years of age and employed on the plan's effective date are immediately eligible to participate in the plan. Other employees who have attained age 21 are eligible for membership on the first day of the month following completion of 90 days of service. The provisions of the 401(k) plan allow eligible employees to contribute subject to IRS limitations. The Company's matching contribution will be determined at the beginning of the plan year. The Company's expense under this plan was $95,000 in 2015 and $74,000 in 2014. The Company entered into Supplemental Executive Retirement Agreements with current and former executive officers. The agreements require the payment of specified benefits upon retirement over specified periods as described in each agreement. The total liability for the agreements included in other liabilities was $804,000 at December 31, 2015 and $715,000 at December 31, 2014. Expenses under these agreements amounted to $126,000 and $101,000, respectively, for the years ended December 31, 2015 and 2014. Payments made under the agreements were $37,000 and $34,000, respectively for each of the years ended December 31, 2015 and 2014. The Company entered into employment agreements (the “Agreements”) with the Executive Officers of the Company. The Agreements provide for severance benefits upon termination following a change in control as defined in the agreements in amounts equal to cash compensation as defined in the agreements, and fringe benefits that the Executive(s) would have received if the Executive(s) would have continued working for an additional two years. The agreements also include provisions to accelerate vesting for stock option plans; or for additional credit for years of service under benefit plans. |
Note 19 - Stock-based Compensat
Note 19 - Stock-based Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 19 - STOCK BASED COMPENSATION PLANS The SBT Bancorp, Inc. 1998 Stock Plan (“1998 Plan”) provided for the granting of options to purchase shares of common stock or the granting of shares of restricted stock up to an aggregate amount of 142,000 shares of common stock of the Company. Options granted under the 1998 Plan may have been either Incentive Stock Options (“ISOs”) within the meaning of Section 422 of the Internal Revenue Code or non-qualified options (“NQOs”) which do not qualify as ISOs. Effective March 17, 2009, no additional restricted stock awards or stock options may be granted under the 1998 Plan. On May 10, 2011, the stockholders of SBT Bancorp, Inc. approved the SBT Bancorp, Inc. 2011 Stock Award and Option Plan (“2011 Plan”). The 2011 Plan provides for the granting of options to purchase shares of common stock or the granting of shares of restricted stock up to an aggregate amount of 100,000 shares of common stock of the Company. Options granted under the 2011 Plan may be either Incentive Stock Options (“ISOs”) within the meaning of Section 422 of the Internal Revenue Code or non-qualified options (“NQOs”) which do not qualify as ISOs. The exercise price for shares covered by an ISO may not be less than 100% of the fair market value of common stock on the date of grant. All options must expire no later than ten years from the date of grant. During 2015 and 2014, the Company granted 8,225 shares and 1,934 shares, respectively, of restricted stock with an award value of $177,000 and $41,000, respectively, or $21.52 and $21.50 per share, respectively. The restricted shares vest over a three year period. During 2015 and 2014, the Company recognized compensation expense related to the restricted shares awarded in the amounts of $178,000 and $145,000, respectively. The recognized tax benefit related to this expense was $53,000 in 2015 and $49,000 in 2014. A summary of the status of the restricted stock awards as of December 31 and changes during the years ending on that date is presented below: 2015 2014 Weighted-Average Weighted-Average Number of Grant Number of Grant Fixed Options Shares Price Shares Price Non-vested restricted stock awards at beginning of year 9,792 $ 23.00 19,524 $ 22.95 Restricted shares granted 8,225 21.52 1,934 21.50 Shares vested (5,634 ) 23.24 (7,756 ) 23.08 Shares forfeited (300 ) 23.52 (3,910 ) 23.09 Non-vested restricted stock awards at end of year 12,083 $ 21.92 9,792 $ 23.00 As of December 31, 2015, the unrecognized share-based compensation expense related to the non-vested restricted stock awards was $206,000. This amount is expected to be recognized over a weighted average period of 1.8 years. A summary of the status of the Company’s stock option plan as of December 31 and changes during the years ending on that date is presented below: 2015 2014 Weighted-Average Weighted-Average Fixed Options Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 21,000 $ 31.50 31,500 $ 30.67 Granted 20,000 30.00 - - Forfeited (21,000 ) 31.50 (10,500 ) 29.00 Outstanding at end of year 20,000 30.00 21,000 31.50 Options exercisable at year-end 4,500 $ 30.00 21,000 $ 31.50 Weighted-average fair value of options granted during the year $ 2.20 N/A December 31,2015 Options Outstanding and Exercisable Weighted-Average Number Remaining Number Exercise Price Outstanding Contractual Life Exercisable Exercise Price $ 30.00 20,000 10 years 4,500 $ 30.00 The fair value of each option award in 2015 was $2.20, as estimated on the date of grant using the Black-Scholes Option Pricing Model using the following assumptions: 10 years expected term; 2.59% expected dividend yield; 0.00% expected forfeiture rate; 20.13% expected volatility; and a 2.27% risk-free interest rate. These assumptions can be highly subjective and therefore, the Company uses historical data within the valuation model. The expected term of options granted is derived from actual option exercise. The expected dividend yield is based on the current annual dividend on a current stock price. The expected volatility is derived from historical returns of the daily closing stock price over the year ended December 31, 2015. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant for periods that coincide with the contractual life of the option. As of December 31, 2015, the remaining compensation costs related to stock options granted under the Plans amounted to $34,000. There were 4,500 shares that vested during the year ended December 31, 2015. Unearned compensation costs relating to the 15,500 unvested shares at December 31, 2015 will be recognized over a weighted average period of 1.7 years. Compensation expense related to the stock options amounted to $10,000 in 2015 and $0 in 2014. |
Note 20 - Earnings Per Share
Note 20 - Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 20 - EARNINGS PER SHARE Reconciliation of the numerators and the denominators of the basic and diluted per share computations for net income available to common stockholders are as follows: 2015 2014 (In Thousands, Except Share Data) Basic earnings per share computation: Net income $ 1,409 $ 805 Preferred stock net accretion (12 ) (12 ) Cumulative preferred stock dividends (96 ) (90 ) Net income available to common shareholders $ 1,301 $ 703 Weighted average shares outstanding, basic 953,539 880,618 Basic earnings per share $ 1.37 $ 0.80 Diluted earnings per share computation: Net income $ 1,409 $ 805 Preferred stock net accretion (12 ) (12 ) Cumulative preferred stock dividends (96 ) (90 ) Net income available to common shareholders $ 1,301 $ 703 Weighted average shares outstanding, before dilution 953,539 880,618 Dilutive potential shares, stock options and awards 3,075 4,415 Weighted average shares outstanding, assuming dilution 956,614 885,033 Diluted earnings per share $ 1.36 $ 0.79 Anti-dilutive equity-based awards totaling 20,000 shares and 21,000 shares for the years ended December 31, 2015 and 2014, respectively, have been excluded from the calculation of diluted EPS. |
Note 21 - Common Stock
Note 21 - Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Common Stock Policy [Abstract] | |
Common Stock Policy [Text Block] | NOTE 21 – COMMON STOCK OFFERING On November 5, 2015, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Keefe, Bruyette & Woods, Inc. (the “Underwriter”), pursuant to which the Company agreed to sell to the Underwriter, and the Underwriter agreed to purchase from the Company, 400,000 shares (the “Shares”) of common stock, no par value per share, of the Company (the “Common Stock”) at a public offering price of $21.00 per share. Pursuant to the Underwriting Agreement, the Company also granted the Underwriter an option (the “Option”), exercisable not later than 30 calendar days after the date of the Underwriting Agreement, to purchase up to 60,000 additional shares of Common Stock. The Shares were registered under the Securities Act of 1933, as amended (the “Securities Act”), pursuant to the Company’s Registration Statement on Form S-1, as amended (File No. 333-206533), which the Securities and Exchange Commission (the “Commission”) declared effective on November 5, 2015 and Registration Statement on Form S-1MEF (File No. 333-207856) as filed by the Company with the Commission on November 6, 2015, which became effective upon filing in accordance with Rule 462(b) under the Securities Act. The closing occurred on November 10, 2015, following satisfaction of the closing conditions set forth in the Underwriting Agreement. As a result of the public offering, the Company issued 400,000 shares of common stock at $21.00 per share. On November 17, 2015, the Underwriter exercised a portion of the Option and purchased an additional 51,473 shares of common stock at $21.00 per share. In connection with the public offering and the Option, the Company issued a total of 451,473 shares of its common stock at $21.00 per share. Net proceeds amounted to $8,503,000, after deducting related underwriting discounts, fees and other expenses of $978,000. |
Note 22 - Preferred Stock
Note 22 - Preferred Stock | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Preferred Stock [Text Block] | NOTE 22 - PREFERRED STOCK On August 11, 2011, the Company issued 9,000 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series C (the “SBLF Preferred Stock”), to the U.S. Treasury pursuant to the Small Business Lending Fund program (the “SBLF”). The SBLF Preferred Stock was purchased for $9 million, had no maturity date and ranked senior to the Company’s common stock with respect to the payment of dividends and distributions and amounts payable upon liquidation, dissolution, and winding up of the Company. The dividend rate on the SBLF Preferred Stock was 1% in 2015 and 2014. On December 18, 2015, the Company redeemed all of the 9,000 outstanding shares of the SBLF Preferred Stock for an aggregate redemption price of approximately $9.02 million, including dividends accrued but unpaid through but not including the redemption date. The redemption of the SBLF Preferred Stock terminated the Company’s participation in the SBLF program. |
Note 23 - Legal Contingencies
Note 23 - Legal Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Legal Matters and Contingencies [Text Block] | NOTE 23- LEGAL CONTINGENCIES Various legal claims arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Company’s consolidated financial statements. |
Note 24 - Reclassification
Note 24 - Reclassification | 12 Months Ended |
Dec. 31, 2015 | |
Partners' Capital, Comprehensive Income [Abstract] | |
Disclosure of Reclassification Amount [Text Block] | NOTE 24 - RECLASSIFICATION Certain amounts in the prior year have been reclassified to be consistent with the current year's statement presentation. |
Note 25 - Subsequent Events
Note 25 - Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 2 5 - SUBSEQUENT EVENTS The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. On February 17, 2016, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.14 per share on the Company’s common stock. The dividend is payable on March 11, 2016 to shareholders of record as of February 29, 2016. |
Note 26 - Parent Company Inform
Note 26 - Parent Company Information | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | NOTE 2 6 – PARENT COMPANY INFORMATION Financial information for the parent company only is presented in the following tables: Condensed balance sheets (in thousands) December 31, Assets 2015 2014 Cash and due from banks $ 557 $ 40 Investment in subsidiaries 36,045 29,095 Due from subsidiary 164 127 Other assets 321 210 Total Assets $ 37,087 $ 29,472 Liabilities and stockholders' equity Long-term subordinated debt $ 7,230 $ - Other liabilities 115 - Total liabilities 7,345 - Total stockholders' equity 29,742 29,472 Total Liabilities and stockholders' equity $ 37,087 $ 29,472 Condensed statements of income (in thousands) Years ended December 31, 2015 2014 Operating Income Dividend income from operating subsidiary $ 525 $ 680 Total operating income 525 680 Operating Expense Interest on long-term debt 61 - Salaries and employee benefits 156 88 Forms and supplies - 6 Professional fees 79 38 Directors’ fees 33 58 Correspondent charges 63 40 Other expense 29 13 Total operating expense 421 243 Income before tax benefit and equity in undistributed earnings of subsidiaries 104 437 Income tax benefit 143 83 Equity in undistributed earnings of subsidiaries 1,162 285 Net income $ 1,409 $ 805 Condensed statements of cash flows (in thousands) Years ended December 31, 2015 2014 Cash flows from operating activities: Net income $ 1,409 $ 805 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed earnings of subsidiary (1,162 ) (285 ) Stock based compensation 188 145 Other, net (32 ) (105 ) Amortization of long-term debt issuance costs 7 - Net cash provided by operating activities 410 560 Cash flows from investing activity: Investment in operating subsidiary (6,000 ) - Net cash used in investing activity (6,000 ) - Cash flows from financing activities: Proceeds from issuance of common stock 8,542 39 Proceeds from the issuance of subordinated debt 7,223 - Redemption of preferred stock (9,000 ) - Excess tax benefit related to stock based compensation - 1 Dividends paid - preferred stock (96 ) (90 ) Dividends paid - common stock (562 ) (492 ) Net cash provided by (used in) financing activities 6,107 (542 ) Net increase in cash and cash equivalents 517 18 Cash and cash equivalents at beginning of year 40 22 Cash and cash equivalents at end of year $ 557 $ 40 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | USE OF ESTIMATES: The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near-term include the determination of the allowance for loan losses, valuation and potential other-than-temporary impairment (“OTTI”) of available-for-sale securities and the valuation of deferred tax assets. |
Consolidation, Policy [Policy Text Block] | BASIS OF PRESENTATION: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, SBT Investment Services, Inc. and NERE Holdings, Inc. SBT Investment Services, Inc. was established solely for the purpose of providing investment products, financial advice and services to its clients and the community. NERE Holdings, Inc. was established to hold real estate. All significant intercompany accounts and transactions have been eliminated in the consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | CASH AND CASH EQUIVALENTS: For purposes of reporting cash flows, cash and cash equivalents include cash on hand, cash items, due from banks, Federal Home Loan Bank interest-bearing demand and overnight deposits, Federal Reserve Bank interest-bearing demand deposits, money market mutual funds and federal funds sold. Cash and due from banks as of December 31, 2015 and 2014 includes $5,657,000 and $6,585,000, respectively, which is subject to withdrawals and usage restrictions to satisfy the reserve requirements of the Federal Reserve Bank of Boston and Bankers’ Bank Northeast. |
Certificates of Deposit [Policy Text Block] | CERTIFICATES OF DEPOSIT Certificates of deposit are issued by federally insured depository instituions, have an original maturity of greater than 90 days and up to 35 months and are carried at cost. |
Investment, Policy [Policy Text Block] | SECURITIES: Investments in debt securities are adjusted for amortization of premiums and accretion of discounts computed so as to approximate the interest method. Gains or losses on sales of investment securities are computed on a specific identification basis. The Company classifies debt and equity securities into one of three categories: held-to-maturity, available-for-sale, or trading. These security classifications may be modified after acquisition only under certain specified conditions. In general, securities may be classified as held-to-maturity only if the Company has the positive intent and ability to hold them to maturity. Trading securities are defined as those bought and held principally for the purpose of selling them in the near term. All other securities must be classified as available-for-sale. -- Held-to-maturity securities are measured at amortized cost in the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings, or in a separate component of stockholders’ equity. They are merely disclosed in the notes to the consolidated financial statements. -- Available-for-sale securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings but are reported as a net amount (less expected tax) in a separate component of stockholders’ equity until realized. -- Trading securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses for trading securities are included in earnings. For any debt security with a fair value less than its amortized cost basis, the Company will determine whether it has the intent to sell the debt security or whether it is more likely than not it will be required to sell the debt security before the recovery of its amortized cost basis. If either condition is met, the Company will recognize a full impairment charge to earnings. For all other debt securities that are considered other-than-temporarily impaired and do not meet either condition, the credit loss portion of impairment will be recognized in earnings as realized losses. The other-than-temporary impairment related to all other factors will be recorded in other comprehensive income. Declines in marketable equity securities below their cost that are deemed other than temporary are reflected in earnings as realized losses. As a member of the Federal Home Loan Bank of Boston (FHLB), the Company is currently required to purchase and hold shares of capital stock in the FHLB of Boston in an amount equal to 0.35% of the Bank’s Membership Stock Investment Base plus an Activity Based Stock Investment Requirement. The Activity Based Stock Investment Requirement is equal to 3.0% of any outstanding principal for overnight advances, 4.0% of any outstanding principal for term advances with an original term of two days to three months and 4.5% of any outstanding principal for term advances with an original term greater than three months. The Bank is in compliance with these requirements. Based on its most recent analysis of the FHLB as of December 31, 2015, management deems its investment in FHLB stock to be not other-than-temporarily impaired. |
Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block] | LOANS HELD-FOR-SALE: Loans held-for-sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses are provided for in a valuation allowance by charges to operations. Interest income on mortgages held-for-sale is accrued currently and classified as interest on loans. |
Finance, Loan and Lease Receivables, Held-for-investment, Policy [Policy Text Block] | LOANS: Loans receivable that management has the intent and ability to hold until maturity or payoff, are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses and any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Interest on loans is recognized on a simple interest basis. Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount amortized as an adjustment of the related loan's yield. The Company is amortizing these amounts over the contractual lives of the related loans. Residential real estate loans are generally placed on nonaccrual when reaching 90 days past due or in process of foreclosure. All closed-end consumer loans 90 days or more past due and any equity line in the process of foreclosure are placed on nonaccrual status. Secured consumer loans are written down to realizable value and unsecured consumer loans are charged off upon reaching 120 or 180 days past due depending on the type of loan. Commercial real estate loans and commercial business loans and leases which are 90 days or more past due are generally placed on nonaccrual status, unless secured by sufficient cash or other assets immediately convertible to cash. When a loan has been placed on nonaccrual status, previously accrued and uncollected interest is reversed against interest on loans. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months. Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectability of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemed to be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered. The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on an annual basis. A reporting system is in place which provides management with frequent reports related to loan quality, loan production, loan delinquencies and non-performing or potential problem loans. Commercial and industrial loans are underwritten after evaluating historical and projected profitability and cash flow to determine the borrower’s ability to repay their obligation as agreed. Underwriting standards are designed to promote relationship banking rather than transactional banking. Commercial and industrial loans are made primarily based on the identified cash flow of the borrower and secondarily on the underlying collateral supporting the loan facility. The cash flow of the borrower may not be as expected and the collateral supporting the loan may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable and inventory and may incorporate a personal guarantee. Some loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent upon the ability of the borrower to collect amounts due from its customers. Commercial real estate loans are subject to the underwriting standards and processes similar to commercial and industrial loans, in addition to those underwriting standards for real estate loans. These loans are viewed primarily as cash flow dependent and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher principal balances and longer repayment periods. Repayment of these loans is generally dependent upon the successful operation of the property securing the loan or the principal business conducted on the property securing the loan. Commercial real estate loans may be adversely affected by conditions in the real estate markets or the economy in general. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. This diversification reduces the exposure to adverse economic conditions that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk-rating criteria. The Company also utilizes third-party experts to provide environmental and market valuations, in addition to economic conditions and trends within a specific industry. The Company also tracks the level of owner occupied commercial real estate loans within its commercial real estate portfolio. With respect to land developers’ and builders’ loans that are secured by non-owner-occupied properties that the Company may originate from time to time, the Company generally requires that the borrower have a proven record of success. Construction loans are underwritten based upon a financial analysis of the developers and property owners and construction cost estimates, in addition to independent appraisal valuations. These loans will rely on the value associated with the project upon completion. These cost and valuation estimates may be inaccurate. Construction loans generally involve the disbursement of substantial funds over a short period of time with repayment substantially dependent upon the success of the completed project. Sources of repayment of these loans would be permanent financing upon completion or sales of developed property. These loans are closely monitored by on-site inspections and are considered to be of a higher risk than other real estate loans due to their ultimate repayment being sensitive to general economic conditions, availability of long-term financing, interest rate sensitivity, and governmental regulation of real property. The Company originates consumer loans utilizing a computer-based credit-scoring analysis to supplement the underwriting process. To monitor and manage consumer loan risk, policies and procedures are developed and modified, as needed, jointly by staff and management. This continual review, coupled with the high volume of borrowers of smaller dollar loans, minimizes risk. Additionally, trend and outlook reports are reviewed by management on a regular basis. Underwriting standards for home equity loans are heavily influenced by regulatory requirements, which include, but are not limited to, a maximum loan-to-value of 75%, collection remedies, the number of such loans that a borrower can have at one time, and documentation requirements. The Company engages an independent loan review firm that reviews and validates the credit risk program on a periodic basis. Results of these reviews are presented to management and the Board of Directors. The loan review process complements and reinforces the risk identification process and assessment decisions made by the relationship managers and credit officer, as well as the Company’s policies and procedures. |
Finance, Loan and Lease Receivables, Held-for-investment, Allowance and Nonperforming Loans, Policy [Policy Text Block] | ALLOWANCE FOR LOAN LOSSES: The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. General Component: The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by the following loan segments: residential real estate, commercial real estate, construction and land development, commercial and consumer. Management uses a rolling average of historical losses based on a time frame appropriate to capture relevant loss data for each loan segment. This historical loss factor is adjusted for the following qualitative factors: levels/trends in delinquencies; trends in volume and terms of loans; effects of changes in risk selection and underwriting standards and other changes in lending policies, procedures and practices; experience/ability/depth of lending management and staff; and national and local economic trends and conditions. There were no changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during 2015. The qualitative factors are determined based on the various risk characteristics of each loan segment. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate and home equity: The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent without obtaining private mortgage insurance for any amounts over 80% and does not grant subprime loans. All loans in these segments are collateralized by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this segment. Commercial real estate: Loans in this segment are primarily income-producing properties throughout the Farmington Valley and surrounding communities in Connecticut. The underlying cash flows generated by the properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which, in turn, will have an effect on the credit quality in this segment. Management periodically obtains rent rolls annually and continually monitors the cash flows of these loans. Construction and land development loans: Loans in this segment primarily include speculative real estate development loans for which payment is derived from sale of the property. Credit risk is affected by cost overruns, time to sell at an adequate price, and market conditions. Commercial loans: Loans in this segment are made to businesses and are generally secured by assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer spending, will have an effect on the credit quality in this segment. Consumer loans: Loans in this segment are generally unsecured and repayment is dependent on the credit quality of the individual borrower. Allocated Component: The allocated component relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value) of the impaired loan are lower than the carrying value of that loan. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential real estate loans for impairment disclosures, unless such loans are subject to a troubled debt restructuring agreement. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company periodically may agree to modify the contractual terms of loans. When a loan is modified and a concession is made to a borrower experiencing financial difficulty, the modification is considered a troubled debt restructuring ("TDR"). All TDRs are initially classified as impaired. Unallocated Component: An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating allocated and general reserves in the portfolio. |
Property, Plant and Equipment, Policy [Policy Text Block] | PREMISES AND EQUIPMENT: Premises and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in income or expense. Depreciation and amortization are calculated principally on the straight-line method over the estimated useful lives of the assets. Estimated lives are 3 to 20 years for furniture and equipment. Leasehold improvements are amortized over the lesser of the life of the lease or the estimated life of the improvements. |
Loans and Leases Receivable, Real Estate Acquired Through Foreclosure, Policy [Policy Text Block] | OTHER REAL ESTATE OWNED AND IN-SUBSTANCE FORECLOSURES: Other real estate owned includes properties acquired through foreclosure and properties classified as in-substance foreclosures. These properties are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure or transfer, establishing a new cost basis. Subsequent to foreclosure or transfer, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Any writedown from cost to estimated fair value required at the time of foreclosure or classification as in-substance foreclosure is charged to the allowance for loan losses. Expenses incurred in connection with maintaining these assets, subsequent writedowns and gains or losses recognized upon sale are included in other expense. The Company classifies commercial loans as in-substance repossessed or foreclosed if the Company receives physical possession of the debtor’s assets regardless of whether formal foreclosure proceedings take place. An in-substance repossession or foreclosure occurs, and the Company is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan upon either: (1) obtaining legal title to the residential real estate property upon completion of a foreclosure; or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | FAIR VALUES OF FINANCIAL INSTRUMENTS: ASC 825, “Financial Instruments,” requires that the Company disclose estimated fair values for its financial instruments. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows: Cash and cash equivalents: The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents approximate those assets' fair values. Certificates of deposit: Fair values of certificates of deposit are estimated using discounted cash flows analyses based on the individual underlying instrument’s current rate of interest. Securities: Fair values for securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. Loans held-for-sale: Fair values for loans held-for-sale are estimated based on outstanding investor commitments, or in the absence of such commitments, are based on current investor yield requirements. Loans receivable: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for other loans are estimated by discounting the future cash flows, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Accrued interest receivable: The carrying amount of accrued interest receivable approximates its fair value. Bank owned life insurance: The carrying amount of bank owned life insurance approximates its fair value. Deposit liabilities: The fair values disclosed for demand deposits, regular savings, NOW accounts, and money market accounts are equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Securities sold under agreements to repurchase: The carrying amounts of securities sold under agreements to repurchase approximate their fair values. Federal Home Loan Bank advances: Fair values of Federal Home Loan Bank advances are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Long-term subordinated debt: The fair value of long-term subordinated debt is estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Off-balance sheet instruments: The fair value of commitments to originate loans is estimated using the fees currently charged to enter similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments and the unadvanced portion of loans, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligation with the counterparties at the reporting date. |
Advertising Costs, Policy [Policy Text Block] | ADVERTISING: The Company directly expenses costs associated with advertising as they are incurred. During the years ended December 31, 2015 and 2014, $442,000 and $594,000, respectively, in advertising and promotion expenses were recognized. |
Income Tax, Policy [Policy Text Block] | INCOME TAXES: The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company's assets and liabilities at enacted tax rates expected to be in effect when the amounts related to such temporary differences are realized or settled. A valuation allowance against deferred tax assets is established when, based upon all available evidence, both positive and negative, it is determined that it is more likely than not that some or all of the deferred tax assets will not be realized. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | STOCK BASED COMPENSATION: At December 31, 2015, the Company has stock-based employee compensation plans which are described more fully in Note 19. The Company accounts for the plan under ASC 718-10, “Compensation - Stock Compensation - Overall.” During the years ended December 31, 2015 and 2014, $188,000 and $145,000, respectively, in stock-based employee compensation was recognized. |
Earnings Per Share, Policy [Policy Text Block] | EARNINGS PER SHARE: The Company defines unvested share-based payment awards that contain nonforfeitable rights to dividends as participating securities that are included in computing EPS using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings (distributed and undistributed) are allocated to common shares and participating securities based on their respective rights to receive dividends. Earnings per common share is calculated by dividing earnings allocated to common shareholders by the weighted-average number of common shares outstanding during the period. Basic EPS excludes dilution and is computed by dividing income allocated to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. |
New Accounting Pronouncements, Policy [Policy Text Block] | RECENT ACCOUNTING PRONOUNCEMENTS: In 2012, the Financial Accounting Standards Board (the “FASB”) issued a proposed standard on accounting for credit losses. The standard would replace multiple existing impairment models, including replacing an “incurred loss” model for loans with an “expected loss” model. The FASB has recently announced an effective date of January 1, 2019, and final guidance is expected to be issued in the second quarter of 2016. The final standard may have a material impact on the Company’s retained earnings in the period of adoption. In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606).” The objective of this ASU is to clarify principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. The guidance in this ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early application is not permitted. The Company is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements. In August 2015, the FASB issued ASU 2015-14 that defers by one year the effective date of Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The standard is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The guidance should be applied on a retrospective basis. The Company adopted this ASU for the year ended December 31, 2015 in relation to its debt issuance costs. In April 2015, the FASB issued ASU 2015-05, “Intangibles – Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company anticipates that the adoption of this ASU will not have a material impact on its consolidated financial statements. In July 2015, the FASB issued ASU 2015-7, "Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its Equivalent) (a consensus of the FASB Emerging Issues Task Force)." This update removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The Update also removes the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient An entity should apply the Update on a retrospective basis. The Company intends to adopt the Update during the first quarter of 2016. Adoption is not anticipated to have a material impact on the Company's financial statements. In January 2016, the FASB issued Accounting Standards Update (ASU) 2016-01, Financial Instruments-Overall (Subtopic 825-10): “Recognition and Measurement of Financial Assets and Financial Liabilities.” This ASU will require entities to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. It will also require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, thus eliminating eligibility for the current available-for-sale category. The ASU will take effect for public companies for fiscal years beginning after December 15, 2017. The Company is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)". ASU 2016-02 amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new guidance will be effective for public entities for annual periods beginning after December 15, 2018 and interim periods therein. Early adoption of ASU 2016-02 as of its issuance is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently reviewing this ASU to determine if it will have an impact on its consolidated financial statements . |
Note 3 - Investments in Avail36
Note 3 - Investments in Available-for-sale Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities [Table Text Block] | Amortized Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value (In Thousands) December 31, 2015: Debt securities issued by U.S. government corporations and agencies $ 10,499 $ 6 $ 42 $ 10,463 Obligations of states and municipalities 14,258 447 36 14,669 Mortgage-backed securities 45,958 65 742 45,281 SBA loan pools 1,089 23 8 1,104 Money market mutual funds 13 - - 13 71,817 541 828 71,530 Money market mutual funds included in cash and other cash equivalents (13 ) - - (13 ) $ 71,804 $ 541 $ 828 $ 71,517 December 31, 2014: Debt securities issued by U.S. government corporations and agencies $ 18,202 $ 1 $ 139 $ 18,064 Obligations of states and municipalities 15,972 679 52 16,599 Mortgage-backed securities 49,157 140 629 48,668 SBA loan pools 440 34 - 474 Money market mutual funds 1 - - 1 83,772 854 820 83,806 Money market mutual funds included in cash and other cash equivalents (1 ) - - (1 ) $ 83,771 $ 854 $ 820 $ 83,805 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Fair Value (In Thousands) Due within one year $ 379 Due after one year through five years 18,528 Due after five years through ten years 4,693 Due after ten years 1,532 Mortgage-backed securities 45,281 SBA loan pools 1,104 $ 71,517 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized Number of Value Losses Value Losses Value Losses Holdings (In Thousands) December 31, 2015: Debt securities issued by U.S. Government corporations and agencies $ 5,975 $ 24 $ 2,482 $ 18 $ 8,457 $ 42 17 SBA Loan Pools 760 8 - - 760 8 1 Obligations of states and municipalities 702 8 1,997 28 2,699 36 6 Mortgage-backed securities 22,125 255 17,463 461 39,588 716 62 Total temporarily impaired securities 29,562 295 21,942 507 51,504 802 86 Other-than-temporarily impaired securities: Mortgage-backed securities 15 - 219 26 234 26 4 Total temporarily impaired and other-than-temporarily impaired securities $ 29,577 $ 295 $ 22,161 $ 533 $ 51,738 $ 828 90 December 31, 2014: Debt securities issued by U.S. Government corporations and agencies $ 4,486 $ 12 $ 13,077 $ 127 $ 17,563 $ 139 36 Obligations of states and municipalities 526 12 1,772 40 2,298 52 5 Mortgage-backed securities 1,422 6 36,550 593 37,972 599 49 Total temporarily impaired securities 6,434 30 51,399 760 57,833 790 90 Other-than-temporarily impaired securities: Mortgage-backed securities - - 274 30 274 30 3 Total temporarily impaired and other-than-temporarily impaired securities $ 6,434 $ 30 $ 51,673 $ 790 $ 58,107 $ 820 93 |
Schedule of Temporary Impairment Losses, Investments [Table Text Block] | 2015 2014 Mortgage-Backed Securities Mortgage-Backed Securities (In Thousands) Total other-than-temporary impairment losses $ 33 $ 38 Less: unrealized other-than-temporary losses recognized in other comprehensive income/loss (1) (26 ) (30 ) Net impairment losses recognized in earnings (2) $ 7 $ 8 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block] | Mortgage-Backed Securities (In Thousands) Balance, December 31, 2014 $ 37 Additions for the credit component on debt securities in which other-than-temporary impairment was previously recognized 7 Balance, December 31, 2015 $ 44 Mortgage-Backed Securities (In Thousands) Balance, December 31, 2013 $ 29 Additions for the credit component on debt securities in which other-than-temporary impairment was previously recognized 8 Balance, December 31, 2014 $ 37 |
Note 4 - Loans (Tables)
Note 4 - Loans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | 2015 2014 (In Thousands) Real estate: Residential $ 138,628 $ 132,553 Commercial 62,118 46,982 Municipal 8,629 8,602 Construction and land development 10,070 13,234 Home equity 47,681 46,403 Commercial and industrial 35,305 19,038 Municipal 3,610 1,459 Consumer 19,350 16,576 325,391 284,847 Allowance for loan losses (3,028 ) (2,761 ) Deferred loan origination costs, net 1,332 1,295 Net loans $ 323,695 $ 283,381 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Real Estate: Construction and Land Commercial Residential Commercial Development Home Equity and Industrial Consumer Unallocated Total (In Thousands) December 31, 2015: Allowance for loan losses: Beginning balance $ 1,085 $ 738 $ 249 $ 324 $ 227 $ 134 $ 4 $ 2,761 Charge-offs - - - - - (22 ) - (22 ) Recoveries - - - 2 3 6 - 11 (Benefit) provision (20 ) (32 ) 75 5 168 39 43 278 Ending balance $ 1,065 $ 706 $ 324 $ 331 $ 398 $ 157 $ 47 $ 3,028 Ending balance: Individually evaluated for impairment $ - $ - $ - $ - $ 2 $ - $ - $ 2 Ending balance: Collectively evaluated for impairment 1,065 706 324 331 396 157 47 3,026 Total allowance for loan losses ending balance $ 1,065 $ 706 $ 324 $ 331 $ 398 $ 157 $ 47 $ 3,028 Loans: Ending balance: Individually evaluated for impairment $ - $ 2,285 $ - $ - $ 363 $ - $ - $ 2,648 Ending balance: Collectively evaluated for impairment 138,628 68,462 10,070 47,681 38,552 19,350 - 322,743 Total loans ending balance $ 138,628 $ 70,747 $ 10,070 $ 47,681 $ 38,915 $ 19,350 $ - $ 325,391 Real Estate: Construction and Land Commercial Residential Commercial Development Home Equity and Industrial Consumer Unallocated Total (In Thousands) December 31, 2014: Allowance for loan losses: Beginning balance $ 1,189 $ 748 $ 211 $ 303 $ 239 $ 102 $ - $ 2,792 Charge-offs (93 ) - - - - (8 ) - (101 ) Recoveries 8 - - - 3 4 - 15 (Benefit) provision (19 ) (10 ) 38 21 (15 ) 36 4 55 Ending balance $ 1,085 $ 738 $ 249 $ 324 $ 227 $ 134 $ 4 $ 2,761 Ending balance: Individually evaluated for impairment $ - $ - $ - $ - $ 6 $ - $ - $ 6 Ending balance: Collectively evaluated for impairment 1,085 738 249 324 221 134 4 2,755 Total allowance for loan losses ending balance $ 1,085 $ 738 $ 249 $ 324 $ 227 $ 134 $ 4 $ 2,761 Loans: Ending balance: Individually evaluated for impairment $ 170 $ 860 $ - $ 3 $ 439 $ - $ - $ 1,472 Ending balance: Collectively evaluated for impairment 132,383 54,724 13,234 46,400 20,058 16,576 - 283,375 Total loans ending balance $ 132,553 $ 55,584 $ 13,234 $ 46,403 $ 20,497 $ 16,576 $ - $ 284,847 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Real Estate: Construction and Land Commercial Residential Commercial Development Home Equity and Industrial Consumer Total (In Thousands) December 31, 2015: Grade: Pass $ - $ 64,823 $ 10,070 $ - $ 36,649 $ - $ 111,542 Special mention - 2,132 - - 216 - 2,348 Substandard 732 3,792 - 262 2,050 - 6,836 Loans not formally rated 137,896 - - 47,419 - 19,350 204,665 Total $ 138,628 $ 70,747 $ 10,070 $ 47,681 $ 38,915 $ 19,350 $ 325,391 December 31, 2014: Grade: Pass $ - $ 50,208 $ 11,529 $ - $ 18,380 $ - $ 80,117 Special mention - 3,866 1,705 - 642 - 6,213 Substandard 474 1,510 - 166 1,475 - 3,625 Loans not formally rated 132,079 - - 46,237 - 16,576 194,892 Total $ 132,553 $ 55,584 $ 13,234 $ 46,403 $ 20,497 $ 16,576 $ 284,847 |
Past Due Financing Receivables [Table Text Block] | 30-59 Days 60-89 Days 90 Days or More Past Due Total Past Due Total Current Total Loans 90 Days or More Past Due and Accruing Nonaccrual Loans (In Thousands) December 31, 2015: Real estate: Residential $ - $ 1,062 $ 594 $ 1,656 $ 136,972 $ 138,628 $ - $ 1,086 Commercial - - 1,668 1,668 60,450 62,118 - 2,285 Municipal - - - - 8,629 8,629 - - Construction and land development - - - - 10,070 10,070 - - Home equity 35 84 178 297 47,384 47,681 - 340 Commercial and industrial - - 363 363 34,942 35,305 - 363 Municipal - - - - 3,610 3,610 - - Consumer 47 7 5 59 19,291 19,350 - 5 Total $ 82 $ 1,153 $ 2,808 $ 4,043 $ 321,348 $ 325,391 $ - $ 4,079 December 31, 2014: Real estate: Residential $ 147 $ - $ 516 $ 663 $ 131,890 $ 132,553 $ - $ 1,064 Commercial - - 860 860 46,122 46,982 - 860 Municipal - - - - 8,602 8,602 - - Construction and land development - - - - 13,234 13,234 - - Home equity 328 - 77 405 45,998 46,403 - 165 Commercial and industrial - - 439 439 18,599 19,038 - 439 Municipal - - - - 1,459 1,459 - - Consumer 124 19 - 143 16,433 16,576 - - Total $ 599 $ 19 $ 1,892 $ 2,510 $ 282,337 $ 284,847 $ - $ 2,528 |
Impaired Financing Receivables [Table Text Block] | Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In Thousands) December 31, 2015: With no related allowance recorded: Real estate: Residential $ - $ - $ - $ - $ - Commercial 2,285 2,285 - 2,358 77 Construction and land development - - - - - Home equity - - - - - Commercial and industrial - - - - - Total impaired with no related allowance $ 2,285 $ 2,285 $ - $ 2,358 $ 77 With an allowance recorded: Residential $ - $ - $ - $ - $ - Commercial - - - - - Construction and land development - - - - - Home equity - - - - - Commercial and industrial 363 363 2 404 - Total impaired with an allowance recorded $ 363 $ 363 $ 2 $ 404 $ - Total Real estate: Residential $ - $ - $ - $ - $ - Commercial 2,285 2,285 - 2,358 77 Construction and land development - - - - - Home equity - - - - - Commercial and industrial 363 363 2 404 - Total impaired loans $ 2,648 $ 2,648 $ 2 $ 2,762 $ 77 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized (In Thousands) December 31, 2014: With no related allowance recorded: Real estate: Residential $ 170 $ 170 $ - $ 172 $ 5 Commercial 860 860 - 896 - Construction and land development - - - 133 56 Home equity 3 3 - 4 - Commercial and industrial - - - - - Total impaired with no related allowance $ 1,033 $ 1,033 $ - $ 1,205 $ 61 With an allowance recorded: Residential $ - $ - $ - $ - $ - Commercial - - - - - Construction and land development - - - - - Home equity - - - - - Commercial and industrial 439 439 6 372 - Total impaired with an allowance recorded $ 439 $ 439 $ 6 $ 372 $ - Total Real estate: Residential $ 170 $ 170 $ - $ 172 $ 5 Commercial 860 860 - 896 - Construction and land development - - - 133 56 Home equity 3 3 - 4 - Commercial and industrial 439 439 6 372 - Total impaired loans $ 1,472 $ 1,472 $ 6 $ 1,577 $ 61 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | Pre-Modification Post- Modification Number of Outstanding Recorded Outstanding Recorded Contracts Investment Investment (Dollars In Thousands) December 31, 2015: Troubled Debt Restructurings: Commercial and industrial 1 $ 363 $ 363 1 $ 363 $ 363 Pre-Modification Post- Modification Number of Outstanding Recorded Outstanding Recorded Contracts Investment Investment (Dollars In Thousands) December 31, 2014: Troubled Debt Restructurings: Commercial and industrial 1 $ 439 $ 439 1 $ 439 $ 439 |
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets [Table Text Block] | 2015 2014 (In Thousands) Balance, beginning of year $ 9 $ 42 Additions 52 5 Reductions (41 ) (38 ) Balance, end of year $ 20 $ 9 |
Note 5 - Premises and Equipme38
Note 5 - Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | 2015 2014 (In Thousands) Leasehold improvements $ 1,082 $ 1,389 Furniture and equipment 3,232 3,105 4,314 4,494 Accumulated depreciation and amortization (2,894 ) (3,034 ) $ 1,420 $ 1,460 |
Note 6 - Deposits (Tables)
Note 6 - Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | (In Thousands) 2016 $ 36,959 2017 10,117 2018 4,416 2019 2,975 2020 2,820 Total $ 57,287 |
Note 10 - Income Taxes (Tables)
Note 10 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2015 2014 (In Thousands) Current: Federal $ 264 $ 181 State 1 2 265 183 Deferred: Federal (24 ) (187 ) State - - (24 ) (187 ) Total income tax expense (benefit) $ 241 $ (4 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2015 2014 % of % of Income Income Federal income tax at statutory rate 34.0 % 34.0 % Increase (decrease) in tax resulting from: Tax-exempt income (20.6 ) (38.0 ) Other 1.2 3.5 Effective tax rates 14.6 % (0.5 ) % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2015 2014 (In Thousands) Deferred tax assets: Allowance for loan losses $ 910 $ 816 Deferred compensation 273 243 Impairment of operating lease - 9 Write-down of securities 15 10 Write-down of OREO - 17 Restricted stock awards 23 7 Charitable contribution carryover 166 120 Other 79 123 Alternative minimum tax carryforward 761 634 Net unrealized holding loss on available-for-sale securities 98 - Gross deferred tax assets 2,325 1,979 Deferred tax liabilities: Depreciation (358 ) (307 ) Deferred loan costs/fees (453 ) (437 ) Mortgage servicing rights (693 ) (536 ) Net unrealized holding gain on available-for-sale securities - (12 ) Gross deferred tax liabilities (1,504 ) (1,292 ) Net deferred tax asset (included in other assets) $ 821 $ 687 |
Note 11 - Commitments and Con41
Note 11 - Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | (In Thousands) 2016 $ 1,018 2017 1,004 2018 977 2019 914 2020 1,339 Thereafter 550 Total $ 5,802 |
Note 12 - Fair Value Measurem42
Note 12 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements at Reporting Date Using: Total Level 1 Level 2 Level 3 (In Thousands) December 31, 2015: Debt securities issued by U.S. government corporations and agencies $ 10,463 $ - $ 10,463 $ - Obligations of states and municipalities 14,669 - 14,669 - Mortgage-backed securities 45,281 - 45,281 - SBA loan pools 1,104 - 1,104 - Totals $ 71,517 $ - $ 71,517 $ - Fair Value Measurements at Reporting Date Using: Total Level 1 Level 2 Level 3 (In Thousands) December 31, 2014: Debt securities issued by U.S. government corporations and agencies $ 18,064 $ - $ 18,064 $ - Obligations of states and municipalities 16,599 - 16,599 - Mortgage-backed securities 48,668 - 48,668 - SBA loan pools 474 - 474 - Totals $ 83,805 $ - $ 83,805 $ - |
Fair Value Measurements, Nonrecurring [Table Text Block] | Fair Value Measurements at Reporting Date Using: Total Level 1 Level 2 Level 3 Writedowns (In Thousands) December 31, 2015: Impaired loans $ 240 $ - $ - $ 240 $ - Totals $ 240 $ - $ - $ 240 $ - December 31, 2014: Impaired loans $ 244 $ - $ - $ 244 $ 43 Other real estate owned 105 - - 105 50 Totals $ 349 $ - $ - $ 349 $ 93 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | December 31, 2015 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In Thousands) Financial assets: Cash and cash equivalents $ 28,890 $ 28,890 $ - $ - $ 28,890 Certificates of deposit 1,250 1,250 - - 1,250 Available-for-sale securities 71,517 - 71,517 - 71,517 Federal Home Loan Bank stock 2,047 2,047 - - 2,047 Loans held-for-sale 2,167 - - 2,187 2,187 Loans, net 323,695 - - 322,596 322,596 Accrued interest receivable 1,143 1,143 - - 1,143 Bank owned life insurance 7,389 - 7,389 - 7,389 Financial liabilities: Deposits 372,642 - 363,752 - 363,752 Securities sold under agreements to repurchase 1,915 - 1,915 - 1,915 Long-term debt 7,230 - 7,339 - 7,339 Federal Home Loan Bank advances 31,500 - 31,500 - 31,500 December 31, 2014 Carrying Fair Value Amount Level 1 Level 2 Level 3 Total (In Thousands) Financial assets: Cash and cash equivalents $ 19,820 $ 19,820 $ - $ - $ 19,820 Available-for-sale securities 83,805 - 83,805 - 83,805 Federal Home Loan Bank stock 1,801 1,801 - - 1,801 Loans held-for-sale 5,374 - - 5,499 5,499 Loans, net 283,381 - - 285,832 285,832 Accrued interest receivable 1,095 1,095 - - 1,095 Bank owned life insurance 7,184 - 7,184 - 7,184 Financial liabilities: Deposits 356,065 - 356,353 - 356,353 Securities sold under agreements to repurchase 3,921 - 3,921 - 3,921 Federal Home Loan Bank advances 17,500 - 17,500 - 17,500 |
Note 13 - Financial Instrumen43
Note 13 - Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block Supplement [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | 2015 2014 (In Thousands) Commitments to originate loans $ 40,708 $ 17,151 Standby letters of credit 3,391 1,888 Unadvanced portions of loans: Construction loans 15,647 6,960 Commercial lines of credit 20,580 17,394 Consumer 621 677 Home equity lines of credit 47,650 45,005 $ 128,597 $ 89,075 |
Note 16 - Other Comprehensive44
Note 16 - Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Comprehensive Income (Loss) [Table Text Block] | 2015 2014 In Thousands Net change in unrealized holding gain/loss on securities available-for-sale $ (189 ) $ 2,684 Reclassification adjustment for realized gains in net income (1) (132 ) (142 ) Other comprehensive (loss) income, before tax (321 ) 2,542 Income tax benefit (expense) 110 (865 ) Other comprehensive (loss) income, net of tax $ (211 ) $ 1,677 |
Note 17 - Regulatory Matters (T
Note 17 - Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars In Thousands) As of December 31, 2015: Total Capital (to Risk Weighted Assets) $ 39,262 14.21 % $ 22,107 8.0 % $ 27,634 10.0 % Tier 1 Capital (to Risk Weighted Assets) 36,234 13.11 16,580 6.0 22,107 8.0 Common Equity Tier 1 capital (to Risk Weighted Assets) 36,234 13.11 12,435 4.5 17,962 6.5 Tier 1 Capital (to Average Assets) 36,234 8.58 16,902 4.0 21,127 5.0 As of December 31, 2014: Total Capital (to Risk Weighted Assets) 31,675 12.80 19,791 8.0 24,739 10.0 Tier 1 Capital (to Risk Weighted Assets) 28,914 11.69 9,895 4.0 14,843 6.0 Tier 1 Capital (to Average Assets) 28,914 7.17 16,137 4.0 20,171 5.0 |
Note 19 - Stock-based Compens46
Note 19 - Stock-based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Nonvested Restricted Stock Shares Activity [Table Text Block] | 2015 2014 Weighted-Average Weighted-Average Number of Grant Number of Grant Fixed Options Shares Price Shares Price Non-vested restricted stock awards at beginning of year 9,792 $ 23.00 19,524 $ 22.95 Restricted shares granted 8,225 21.52 1,934 21.50 Shares vested (5,634 ) 23.24 (7,756 ) 23.08 Shares forfeited (300 ) 23.52 (3,910 ) 23.09 Non-vested restricted stock awards at end of year 12,083 $ 21.92 9,792 $ 23.00 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 2015 2014 Weighted-Average Weighted-Average Fixed Options Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 21,000 $ 31.50 31,500 $ 30.67 Granted 20,000 30.00 - - Forfeited (21,000 ) 31.50 (10,500 ) 29.00 Outstanding at end of year 20,000 30.00 21,000 31.50 Options exercisable at year-end 4,500 $ 30.00 21,000 $ 31.50 Weighted-average fair value of options granted during the year $ 2.20 N/A |
Schedule of Share Based Compensation Stock Options Outstanding and Exercisable [Table Text Block] | December 31,2015 Options Outstanding and Exercisable Weighted-Average Number Remaining Number Exercise Price Outstanding Contractual Life Exercisable Exercise Price $ 30.00 20,000 10 years 4,500 $ 30.00 |
Note 20 - Earnings Per Share (T
Note 20 - Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2015 2014 (In Thousands, Except Share Data) Basic earnings per share computation: Net income $ 1,409 $ 805 Preferred stock net accretion (12 ) (12 ) Cumulative preferred stock dividends (96 ) (90 ) Net income available to common shareholders $ 1,301 $ 703 Weighted average shares outstanding, basic 953,539 880,618 Basic earnings per share $ 1.37 $ 0.80 Diluted earnings per share computation: Net income $ 1,409 $ 805 Preferred stock net accretion (12 ) (12 ) Cumulative preferred stock dividends (96 ) (90 ) Net income available to common shareholders $ 1,301 $ 703 Weighted average shares outstanding, before dilution 953,539 880,618 Dilutive potential shares, stock options and awards 3,075 4,415 Weighted average shares outstanding, assuming dilution 956,614 885,033 Diluted earnings per share $ 1.36 $ 0.79 |
Note 26 - Parent Company Info48
Note 26 - Parent Company Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet [Table Text Block] | (in thousands) December 31, Assets 2015 2014 Cash and due from banks $ 557 $ 40 Investment in subsidiaries 36,045 29,095 Due from subsidiary 164 127 Other assets 321 210 Total Assets $ 37,087 $ 29,472 Liabilities and stockholders' equity Long-term subordinated debt $ 7,230 $ - Other liabilities 115 - Total liabilities 7,345 - Total stockholders' equity 29,742 29,472 Total Liabilities and stockholders' equity $ 37,087 $ 29,472 |
Condensed Income Statement [Table Text Block] | (in thousands) Years ended December 31, 2015 2014 Operating Income Dividend income from operating subsidiary $ 525 $ 680 Total operating income 525 680 Operating Expense Interest on long-term debt 61 - Salaries and employee benefits 156 88 Forms and supplies - 6 Professional fees 79 38 Directors’ fees 33 58 Correspondent charges 63 40 Other expense 29 13 Total operating expense 421 243 Income before tax benefit and equity in undistributed earnings of subsidiaries 104 437 Income tax benefit 143 83 Equity in undistributed earnings of subsidiaries 1,162 285 Net income $ 1,409 $ 805 |
Condensed Cash Flow Statement [Table Text Block] | (in thousands) Years ended December 31, 2015 2014 Cash flows from operating activities: Net income $ 1,409 $ 805 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed earnings of subsidiary (1,162 ) (285 ) Stock based compensation 188 145 Other, net (32 ) (105 ) Amortization of long-term debt issuance costs 7 - Net cash provided by operating activities 410 560 Cash flows from investing activity: Investment in operating subsidiary (6,000 ) - Net cash used in investing activity (6,000 ) - Cash flows from financing activities: Proceeds from issuance of common stock 8,542 39 Proceeds from the issuance of subordinated debt 7,223 - Redemption of preferred stock (9,000 ) - Excess tax benefit related to stock based compensation - 1 Dividends paid - preferred stock (96 ) (90 ) Dividends paid - common stock (562 ) (492 ) Net cash provided by (used in) financing activities 6,107 (542 ) Net increase in cash and cash equivalents 517 18 Cash and cash equivalents at beginning of year 40 22 Cash and cash equivalents at end of year $ 557 $ 40 |
Note 2 - Accounting Policies (D
Note 2 - Accounting Policies (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 2 - Accounting Policies (Details) [Line Items] | ||
Restricted Cash and Cash Equivalents | $ 5,657,000 | $ 6,585,000 |
Federal Home Loan Bank Stock, Membership Stock Investment Requirement, Percentage | 0.35% | |
Advertising Expense | $ 442,000 | 594,000 |
Share-based Compensation | $ 188,000 | $ 145,000 |
Overnight Federal Funds Rate Base [Member] | ||
Note 2 - Accounting Policies (Details) [Line Items] | ||
Federal Home Loan Bank Stock, Activity Based Stock Investment Requirement, Percentage | 3.00% | |
Federal Home Loan Bank Borrowings Rate [Member] | ||
Note 2 - Accounting Policies (Details) [Line Items] | ||
Federal Home Loan Bank Stock, Activity Based Stock Investment Requirement, Percentage | 4.00% | |
Derivative [Member] | ||
Note 2 - Accounting Policies (Details) [Line Items] | ||
Federal Home Loan Bank Stock, Activity Based Stock Investment Requirement, Percentage | 4.50% | |
Residential Portfolio Segment [Member] | ||
Note 2 - Accounting Policies (Details) [Line Items] | ||
Loan Payments, Delinquency Period | 90 days | |
Consumer Portfolio Segment [Member] | ||
Note 2 - Accounting Policies (Details) [Line Items] | ||
Loan Payments, Delinquency Period | 90 days | |
Commercial Real Estate Portfolio Segment [Member] | ||
Note 2 - Accounting Policies (Details) [Line Items] | ||
Loan Payments, Delinquency Period | 90 days | |
Commercial Portfolio Segment [Member] | ||
Note 2 - Accounting Policies (Details) [Line Items] | ||
Loan Payments, Delinquency Period | 90 days | |
Minimum [Member] | Furniture and Fixtures [Member] | ||
Note 2 - Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Maximum [Member] | Furniture and Fixtures [Member] | ||
Note 2 - Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years |
Note 3 - Investments in Avail50
Note 3 - Investments in Available-for-sale Securities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from Sale of Available-for-sale Securities | $ 2,211,000 | $ 1,712,000 |
Available-for-sale Securities, Gross Realized Gains | 139,000 | 150,000,000 |
Available-for-sale Securities, Realized Gain (Loss), Income Tax Expense (Benefit) | 47,000 | 51,000,000 |
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | 1,712,000 | |
Available-for-sale Securities Pledged as Collateral | 14,319,000 | 17,271,000 |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities | $ 7,000 | $ 8,000 |
Note 3 - Investments in Avail51
Note 3 - Investments in Available-for-sale Securities (Details) - Amortized Cost and Fair Value - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 71,804 | $ 83,771 |
Available-for-sale Securities, Gross Unrealized Gains | 541 | 854 |
Available-for-sale Securities, Gross Unrealized Losses | 828 | 820 |
Available-for-sale Securities | 71,517 | 83,805 |
December 31, 2014: | ||
Available-for-sale Securities, Amortized Cost Basis | (71,804) | (83,771) |
Available-for-sale Securities | (71,517) | (83,805) |
US Government Agencies Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 10,499 | 18,202 |
Available-for-sale Securities, Gross Unrealized Gains | 6 | 1 |
Available-for-sale Securities, Gross Unrealized Losses | 42 | 139 |
Available-for-sale Securities | 10,463 | 18,064 |
December 31, 2014: | ||
Available-for-sale Securities, Amortized Cost Basis | (10,499) | (18,202) |
Available-for-sale Securities | (10,463) | (18,064) |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 14,258 | 15,972 |
Available-for-sale Securities, Gross Unrealized Gains | 447 | 679 |
Available-for-sale Securities, Gross Unrealized Losses | 36 | 52 |
Available-for-sale Securities | 14,669 | 16,599 |
December 31, 2014: | ||
Available-for-sale Securities, Amortized Cost Basis | (14,258) | (15,972) |
Available-for-sale Securities | (14,669) | (16,599) |
Collateralized Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 45,958 | 49,157 |
Available-for-sale Securities, Gross Unrealized Gains | 65 | 140 |
Available-for-sale Securities, Gross Unrealized Losses | 742 | 629 |
Available-for-sale Securities | 45,281 | 48,668 |
December 31, 2014: | ||
Available-for-sale Securities, Amortized Cost Basis | (45,958) | (49,157) |
Available-for-sale Securities | (45,281) | (48,668) |
Other Debt Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 1,089 | 440 |
Available-for-sale Securities, Gross Unrealized Gains | 23 | 34 |
Available-for-sale Securities, Gross Unrealized Losses | 8 | |
Available-for-sale Securities | 1,104 | 474 |
December 31, 2014: | ||
Available-for-sale Securities, Amortized Cost Basis | (1,089) | (440) |
Available-for-sale Securities | (1,104) | (474) |
Money Market Mutual Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 13 | 1 |
Available-for-sale Securities | 13 | 1 |
December 31, 2014: | ||
Available-for-sale Securities, Amortized Cost Basis | (13) | (1) |
Available-for-sale Securities | (13) | (1) |
Available-for-sale Equity Securities Excluding Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 71,817 | 83,772 |
Available-for-sale Securities, Gross Unrealized Gains | 541 | 854 |
Available-for-sale Securities, Gross Unrealized Losses | 828 | 820 |
Available-for-sale Securities | 71,530 | 83,806 |
December 31, 2014: | ||
Available-for-sale Securities, Amortized Cost Basis | (71,817) | (83,772) |
Available-for-sale Securities | (71,530) | (83,806) |
Money Market Mutual Funds in Cash and Equivalents [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 13 | 1 |
Available-for-sale Securities | 13 | 1 |
December 31, 2014: | ||
Available-for-sale Securities, Amortized Cost Basis | (13) | (1) |
Available-for-sale Securities | $ (13) | $ (1) |
Note 3 - Investments in Avail52
Note 3 - Investments in Available-for-sale Securities (Details) - Maturities of Securities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 3 - Investments in Available-for-sale Securities (Details) - Maturities of Securities [Line Items] | ||
Due within one year | $ 379 | |
Due after one year through five years | 18,528 | |
Due after five years through ten years | 4,693 | |
Due after ten years | 1,532 | |
71,517 | $ 83,805 | |
Collateralized Mortgage Backed Securities [Member] | ||
Note 3 - Investments in Available-for-sale Securities (Details) - Maturities of Securities [Line Items] | ||
Available-for-sale Securities without single maturity date | 45,281 | |
45,281 | 48,668 | |
Other Debt Obligations [Member] | ||
Note 3 - Investments in Available-for-sale Securities (Details) - Maturities of Securities [Line Items] | ||
Available-for-sale Securities without single maturity date | 1,104 | |
$ 1,104 | $ 474 |
Note 3 - Investments in Avail53
Note 3 - Investments in Available-for-sale Securities (Details) - Securities in a Continuous Unrealized Loss Position $ in Thousands | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Temporarily Impaired Securities [Member] | ||
Note 3 - Investments in Available-for-sale Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
Available-for-sale securities in a continuous unrealized loss position, less than 12 months, fair value | $ 29,562 | $ 6,434 |
Available-for-sale securities in a continuous unrealized loss position, less than 12 months, unrealized losses | 295 | 30 |
Available-for-sale securities in a continuous unrealized loss position, 12 months or longer, fair value | 21,942 | 51,399 |
Available-for-sale securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 507 | 760 |
Available-for-sale securities in a continuous unrealized loss position, fair value | 51,504 | 57,833 |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses | $ 802 | $ 790 |
Available-for-sale securities in a continuous unrealized loss position, number of holdings | 86 | 90 |
Temporarily Impaired Securities [Member] | US Government Agencies Debt Securities [Member] | ||
Note 3 - Investments in Available-for-sale Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
Available-for-sale securities in a continuous unrealized loss position, less than 12 months, fair value | $ 5,975 | $ 4,486 |
Available-for-sale securities in a continuous unrealized loss position, less than 12 months, unrealized losses | 24 | 12 |
Available-for-sale securities in a continuous unrealized loss position, 12 months or longer, fair value | 2,482 | 13,077 |
Available-for-sale securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 18 | 127 |
Available-for-sale securities in a continuous unrealized loss position, fair value | 8,457 | 17,563 |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses | $ 42 | $ 139 |
Available-for-sale securities in a continuous unrealized loss position, number of holdings | 17 | 36 |
Temporarily Impaired Securities [Member] | Other Debt Obligations [Member] | ||
Note 3 - Investments in Available-for-sale Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
Available-for-sale securities in a continuous unrealized loss position, less than 12 months, fair value | $ 760 | |
Available-for-sale securities in a continuous unrealized loss position, less than 12 months, unrealized losses | 8 | |
Available-for-sale securities in a continuous unrealized loss position, fair value | 760 | |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses | $ 8 | |
Available-for-sale securities in a continuous unrealized loss position, number of holdings | 1 | |
Temporarily Impaired Securities [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Note 3 - Investments in Available-for-sale Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
Available-for-sale securities in a continuous unrealized loss position, less than 12 months, fair value | $ 702 | $ 526 |
Available-for-sale securities in a continuous unrealized loss position, less than 12 months, unrealized losses | 8 | 12 |
Available-for-sale securities in a continuous unrealized loss position, 12 months or longer, fair value | 1,997 | 1,772 |
Available-for-sale securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 28 | 40 |
Available-for-sale securities in a continuous unrealized loss position, fair value | 2,699 | 2,298 |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses | $ 36 | $ 52 |
Available-for-sale securities in a continuous unrealized loss position, number of holdings | 6 | 5 |
Temporarily Impaired Securities [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Note 3 - Investments in Available-for-sale Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
Available-for-sale securities in a continuous unrealized loss position, less than 12 months, fair value | $ 22,125 | $ 1,422 |
Available-for-sale securities in a continuous unrealized loss position, less than 12 months, unrealized losses | 255 | 6 |
Available-for-sale securities in a continuous unrealized loss position, 12 months or longer, fair value | 17,463 | 36,550 |
Available-for-sale securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 461 | 593 |
Available-for-sale securities in a continuous unrealized loss position, fair value | 39,588 | 37,972 |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses | $ 716 | $ 599 |
Available-for-sale securities in a continuous unrealized loss position, number of holdings | 62 | 49 |
Other Than Temporarily Impaired Securities [Member] | ||
Note 3 - Investments in Available-for-sale Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
Available-for-sale securities in a continuous unrealized loss position, less than 12 months, fair value | $ 29,577 | $ 6,434 |
Available-for-sale securities in a continuous unrealized loss position, less than 12 months, unrealized losses | 295 | 30 |
Available-for-sale securities in a continuous unrealized loss position, 12 months or longer, fair value | 22,161 | 51,673 |
Available-for-sale securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 533 | 790 |
Available-for-sale securities in a continuous unrealized loss position, fair value | 51,738 | 58,107 |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses | $ 828 | $ 820 |
Available-for-sale securities in a continuous unrealized loss position, number of holdings | 90 | 93 |
Other Than Temporarily Impaired Securities [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Note 3 - Investments in Available-for-sale Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
Available-for-sale securities in a continuous unrealized loss position, less than 12 months, fair value | $ 15 | |
Available-for-sale securities in a continuous unrealized loss position, 12 months or longer, fair value | 219 | $ 274 |
Available-for-sale securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 26 | 30 |
Available-for-sale securities in a continuous unrealized loss position, fair value | 234 | 274 |
Available-for-sale securities in a continuous unrealized loss position, unrealized losses | $ 26 | $ 30 |
Available-for-sale securities in a continuous unrealized loss position, number of holdings | 4 | 3 |
Note 3 - Investments in Avail54
Note 3 - Investments in Available-for-sale Securities (Details) - Other-than-temporary Impairment Losses on Debt Securities - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Note 3 - Investments in Available-for-sale Securities (Details) - Other-than-temporary Impairment Losses on Debt Securities [Line Items] | |||
Net impairment losses recognized in earnings (2) | $ 7,000 | $ 8,000 | |
Collateralized Mortgage Backed Securities [Member] | |||
Note 3 - Investments in Available-for-sale Securities (Details) - Other-than-temporary Impairment Losses on Debt Securities [Line Items] | |||
Total other-than-temporary impairment losses | 33,000 | 38,000 | |
Less: unrealized other-than-temporary losses recognized in other comprehensive income/loss (1) | [1] | (26,000) | (30,000) |
Net impairment losses recognized in earnings (2) | [2] | $ 7,000 | $ 8,000 |
[1] | Represents the noncredit component of the other-than-temporary impairment on the securities. | ||
[2] | Represents the credit component of the other-than-temporary impairment on securities. |
Note 3 - Investments in Avail55
Note 3 - Investments in Available-for-sale Securities (Details) - Credit Component Recognized in Earnings on Debt Securities - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Additions for the credit component on debt securities in which other-than-temporary impairment was previously recognized | $ 7,000 | $ 8,000 | |
Collateralized Mortgage Backed Securities [Member] | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | |||
Balance | 37,000 | 29,000 | |
Additions for the credit component on debt securities in which other-than-temporary impairment was previously recognized | [1] | 7,000 | 8,000 |
Balance | $ 44,000 | $ 37,000 | |
[1] | Represents the credit component of the other-than-temporary impairment on securities. |
Note 4 - Loans (Details)
Note 4 - Loans (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Note 4 - Loans (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | $ 325,391,000 | $ 284,847,000 |
Percentage of Delinquent Loans Outstanding | 1.21% | 0.67% |
Financing Receivable, Modifications, Number of Contracts | 1 | 1 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 2,000 | $ 6,000 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | |
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 0 | 0 |
Mortgage Loans in Process of Foreclosure, Amount | 315,000 | |
Mortgage Servicing Rights [Member] | ||
Note 4 - Loans (Details) [Line Items] | ||
Servicing Asset at Amortized Cost | 2,039,000 | 1,577,000 |
Servicing Asset at Amortized Cost, Additions | 1,069,000 | 531,000 |
Servicing Asset at Amortized Cost, Amortization | 596,000 | 401,000 |
Servicing Asset at Fair Value, Amount | 2,715,000 | 2,049,000 |
Mortgages [Member] | ||
Note 4 - Loans (Details) [Line Items] | ||
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement | 255,196,000 | 176,579,000 |
Residential, Home Equity and Consumer Portfolio Segments [Member] | ||
Note 4 - Loans (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | 205,700,000 | 195,500,000 |
Home Equity Portfolio Segment [Member] | ||
Note 4 - Loans (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | $ 47,681,000 | 46,403,000 |
Loan to Value Ratio | 80.00% | |
Commercial Portfolio Segment [Member] | ||
Note 4 - Loans (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | $ 35,305,000 | $ 19,038,000 |
Financing Receivable, Modifications, Number of Contracts | 1 | 1 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 2,000 | $ 6,000 |
Residential Portfolio Segment [Member] | ||
Note 4 - Loans (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | 138,628,000 | 132,553,000 |
Real Estate Acquired Through Foreclosure | 0 | |
Not Formally Rated [Member] | Residential, Home Equity and Consumer Portfolio Segments [Member] | ||
Note 4 - Loans (Details) [Line Items] | ||
Loans and Leases Receivable, Gross | $ 204,700,000 | $ 194,900,000 |
Payments Temporarily Reduced [Member] | Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | ||
Note 4 - Loans (Details) [Line Items] | ||
Financing Receivable, Modifications, Number of Contracts | 1 | 1 |
Financing Receivable, Modifications, Recorded Investment | $ 363,000 | $ 439,000 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | $ 2,000 | $ 6,000 |
Note 4 - Loans (Details) - Loan
Note 4 - Loans (Details) - Loans - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Real estate: | ||
Loans | $ 325,391 | $ 284,847 |
Allowance for loan losses | (3,028) | (2,761) |
Deferred loan origination costs, net | 1,332 | 1,295 |
Net loans | 323,695 | 283,381 |
Residential Portfolio Segment [Member] | ||
Real estate: | ||
Loans | 138,628 | 132,553 |
Commercial Real Estate Portfolio Segment [Member] | ||
Real estate: | ||
Loans | 62,118 | 46,982 |
Municipal Real Estate Portfolio Segment [Member] | ||
Real estate: | ||
Loans | 8,629 | 8,602 |
Construction and Land Development Real Estate Portfolio Segment [Member] | ||
Real estate: | ||
Loans | 10,070 | 13,234 |
Home Equity Portfolio Segment [Member] | ||
Real estate: | ||
Loans | 47,681 | 46,403 |
Commercial Portfolio Segment [Member] | ||
Real estate: | ||
Loans | 35,305 | 19,038 |
Municipal Non Real Estate Portfolio Segment [Member] | ||
Real estate: | ||
Loans | 3,610 | 1,459 |
Consumer Portfolio Segment [Member] | ||
Real estate: | ||
Loans | $ 19,350 | $ 16,576 |
Note 4 - Loans (Details) - Allo
Note 4 - Loans (Details) - Allowance for Loan Losses - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for loan losses: | ||||
Beginning balance | $ 2,761 | $ 2,792 | ||
Charge-offs | (22) | (101) | ||
Recoveries | 11 | 15 | ||
(Benefit) provision | 278 | 55 | ||
Ending balance | 3,028 | 2,761 | ||
Ending balance: | ||||
Individually evaluated for impairment | $ 2 | $ 6 | ||
Ending balance: | ||||
Collectively evaluated for impairment | 3,026 | 2,755 | ||
Total allowance for loan losses ending balance | 2,761 | 2,761 | 3,028 | 2,761 |
Ending balance: | ||||
Individually evaluated for impairment | 2,648 | 1,472 | ||
Ending balance: | ||||
Collectively evaluated for impairment | 322,743 | 283,375 | ||
Total loans ending balance | 325,391 | 284,847 | ||
Residential Portfolio Segment [Member] | ||||
Allowance for loan losses: | ||||
Beginning balance | 1,085 | 1,189 | ||
Charge-offs | (93) | |||
Recoveries | 8 | |||
(Benefit) provision | (20) | (19) | ||
Ending balance | 1,065 | 1,085 | ||
Ending balance: | ||||
Collectively evaluated for impairment | 1,065 | 1,085 | ||
Total allowance for loan losses ending balance | 1,085 | 1,085 | 1,065 | 1,085 |
Ending balance: | ||||
Individually evaluated for impairment | 170 | |||
Ending balance: | ||||
Collectively evaluated for impairment | 138,628 | 132,383 | ||
Total loans ending balance | 138,628 | 132,553 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Allowance for loan losses: | ||||
Beginning balance | 738 | 748 | ||
(Benefit) provision | (32) | (10) | ||
Ending balance | 706 | 738 | ||
Ending balance: | ||||
Collectively evaluated for impairment | 706 | 738 | ||
Total allowance for loan losses ending balance | 738 | 738 | 706 | 738 |
Ending balance: | ||||
Individually evaluated for impairment | 2,285 | 860 | ||
Ending balance: | ||||
Collectively evaluated for impairment | 68,462 | 54,724 | ||
Total loans ending balance | 70,747 | 55,584 | ||
Construction and Land Development Real Estate Portfolio Segment [Member] | ||||
Allowance for loan losses: | ||||
Beginning balance | 249 | 211 | ||
(Benefit) provision | 75 | 38 | ||
Ending balance | 324 | 249 | ||
Ending balance: | ||||
Collectively evaluated for impairment | 324 | 249 | ||
Total allowance for loan losses ending balance | 249 | 249 | 324 | 249 |
Ending balance: | ||||
Collectively evaluated for impairment | 10,070 | 13,234 | ||
Total loans ending balance | 10,070 | 13,234 | ||
Home Equity Portfolio Segment [Member] | ||||
Allowance for loan losses: | ||||
Beginning balance | 324 | 303 | ||
Recoveries | 2 | |||
(Benefit) provision | 5 | 21 | ||
Ending balance | 331 | 324 | ||
Ending balance: | ||||
Collectively evaluated for impairment | 331 | 324 | ||
Total allowance for loan losses ending balance | 324 | 324 | 331 | 324 |
Ending balance: | ||||
Individually evaluated for impairment | 3 | |||
Ending balance: | ||||
Collectively evaluated for impairment | 47,681 | 46,400 | ||
Total loans ending balance | 47,681 | 46,403 | ||
Commercial Portfolio Segment [Member] | ||||
Allowance for loan losses: | ||||
Beginning balance | 227 | 239 | ||
Recoveries | 3 | 3 | ||
(Benefit) provision | 168 | (15) | ||
Ending balance | 398 | 227 | ||
Ending balance: | ||||
Individually evaluated for impairment | 2 | 6 | ||
Ending balance: | ||||
Collectively evaluated for impairment | 396 | 221 | ||
Total allowance for loan losses ending balance | 227 | 227 | 398 | 227 |
Ending balance: | ||||
Individually evaluated for impairment | 363 | 439 | ||
Ending balance: | ||||
Collectively evaluated for impairment | 38,552 | 20,058 | ||
Total loans ending balance | 38,915 | 20,497 | ||
Consumer Portfolio Segment [Member] | ||||
Allowance for loan losses: | ||||
Beginning balance | 134 | 102 | ||
Charge-offs | (22) | (8) | ||
Recoveries | 6 | 4 | ||
(Benefit) provision | 39 | 36 | ||
Ending balance | 157 | 134 | ||
Ending balance: | ||||
Collectively evaluated for impairment | 157 | 134 | ||
Total allowance for loan losses ending balance | 134 | 134 | 157 | 134 |
Ending balance: | ||||
Collectively evaluated for impairment | 19,350 | 16,576 | ||
Total loans ending balance | 19,350 | 16,576 | ||
Unallocated Financing Receivables [Member] | ||||
Allowance for loan losses: | ||||
Beginning balance | 4 | |||
(Benefit) provision | 43 | 4 | ||
Ending balance | 47 | 4 | ||
Ending balance: | ||||
Collectively evaluated for impairment | 47 | 4 | ||
Total allowance for loan losses ending balance | $ 4 | $ 4 | $ 47 | $ 4 |
Note 4 - Loans (Details) - Lo59
Note 4 - Loans (Details) - Loans by Risk Rating - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Grade: | ||
Loans | $ 325,391 | $ 284,847 |
Pass [Member] | ||
Grade: | ||
Loans | 111,542 | 80,117 |
Special Mention [Member] | ||
Grade: | ||
Loans | 2,348 | 6,213 |
Substandard [Member] | ||
Grade: | ||
Loans | 6,836 | 3,625 |
Not Formally Rated [Member] | ||
Grade: | ||
Loans | 204,665 | 194,892 |
Residential Portfolio Segment [Member] | ||
Grade: | ||
Loans | 138,628 | 132,553 |
Residential Portfolio Segment [Member] | Substandard [Member] | ||
Grade: | ||
Loans | 732 | 474 |
Residential Portfolio Segment [Member] | Not Formally Rated [Member] | ||
Grade: | ||
Loans | 137,896 | 132,079 |
Commercial Real Estate Portfolio Segment [Member] | ||
Grade: | ||
Loans | 70,747 | 55,584 |
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Grade: | ||
Loans | 64,823 | 50,208 |
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Grade: | ||
Loans | 2,132 | 3,866 |
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | ||
Grade: | ||
Loans | 3,792 | 1,510 |
Construction and Land Development Real Estate Portfolio Segment [Member] | ||
Grade: | ||
Loans | 10,070 | 13,234 |
Construction and Land Development Real Estate Portfolio Segment [Member] | Pass [Member] | ||
Grade: | ||
Loans | 10,070 | 11,529 |
Construction and Land Development Real Estate Portfolio Segment [Member] | Special Mention [Member] | ||
Grade: | ||
Loans | 1,705 | |
Home Equity Portfolio Segment [Member] | ||
Grade: | ||
Loans | 47,681 | 46,403 |
Home Equity Portfolio Segment [Member] | Substandard [Member] | ||
Grade: | ||
Loans | 262 | 166 |
Home Equity Portfolio Segment [Member] | Not Formally Rated [Member] | ||
Grade: | ||
Loans | 47,419 | 46,237 |
Commercial Portfolio Segment [Member] | ||
Grade: | ||
Loans | 38,915 | 20,497 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Grade: | ||
Loans | 36,649 | 18,380 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Grade: | ||
Loans | 216 | 642 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Grade: | ||
Loans | 2,050 | 1,475 |
Consumer Portfolio Segment [Member] | ||
Grade: | ||
Loans | 19,350 | 16,576 |
Consumer Portfolio Segment [Member] | Not Formally Rated [Member] | ||
Grade: | ||
Loans | $ 19,350 | $ 16,576 |
Note 4 - Loans (Details) - Age
Note 4 - Loans (Details) - Age Analysis of Past Due Loans - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Real estate: | ||
Past Due | $ 4,043 | $ 2,510 |
Total current | 321,348 | 282,337 |
Total loans | $ 325,391 | $ 284,847 |
90 Days or More Past Due and Accruing | ||
Nonaccrual loans | $ 4,079 | $ 2,528 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Real estate: | ||
Past Due | 82 | 599 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Real estate: | ||
Past Due | 1,153 | 19 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Real estate: | ||
Past Due | 2,808 | 1,892 |
Residential Portfolio Segment [Member] | ||
Real estate: | ||
Past Due | 1,656 | 663 |
Total current | 136,972 | 131,890 |
Total loans | $ 138,628 | $ 132,553 |
90 Days or More Past Due and Accruing | ||
Nonaccrual loans | $ 1,086 | $ 1,064 |
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Real estate: | ||
Past Due | 147 | |
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Real estate: | ||
Past Due | 1,062 | |
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Real estate: | ||
Past Due | 594 | 516 |
Commercial Real Estate Portfolio Segment [Member] | ||
Real estate: | ||
Past Due | 1,668 | 860 |
Total current | 60,450 | 46,122 |
Total loans | $ 62,118 | $ 46,982 |
90 Days or More Past Due and Accruing | ||
Nonaccrual loans | $ 2,285 | $ 860 |
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Real estate: | ||
Past Due | 1,668 | 860 |
Municipal Real Estate Portfolio Segment [Member] | ||
Real estate: | ||
Total current | 8,629 | 8,602 |
Total loans | $ 8,629 | $ 8,602 |
90 Days or More Past Due and Accruing | ||
Construction and Land Development Real Estate Portfolio Segment [Member] | ||
Real estate: | ||
Total current | $ 10,070 | $ 13,234 |
Total loans | $ 10,070 | $ 13,234 |
90 Days or More Past Due and Accruing | ||
Home Equity Portfolio Segment [Member] | ||
Real estate: | ||
Past Due | $ 297 | $ 405 |
Total current | 47,384 | 45,998 |
Total loans | $ 47,681 | $ 46,403 |
90 Days or More Past Due and Accruing | ||
Nonaccrual loans | $ 340 | $ 165 |
Home Equity Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Real estate: | ||
Past Due | 35 | 328 |
Home Equity Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Real estate: | ||
Past Due | 84 | |
Home Equity Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Real estate: | ||
Past Due | 178 | 77 |
Commercial Portfolio Segment [Member] | ||
Real estate: | ||
Past Due | 363 | 439 |
Total current | 34,942 | 18,599 |
Total loans | $ 35,305 | $ 19,038 |
90 Days or More Past Due and Accruing | ||
Nonaccrual loans | $ 363 | $ 439 |
Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Real estate: | ||
Past Due | 363 | 439 |
Municipal Non Real Estate Portfolio Segment [Member] | ||
Real estate: | ||
Total current | 3,610 | 1,459 |
Total loans | $ 3,610 | $ 1,459 |
90 Days or More Past Due and Accruing | ||
Consumer Portfolio Segment [Member] | ||
Real estate: | ||
Past Due | $ 59 | $ 143 |
Total current | 19,291 | 16,433 |
Total loans | $ 19,350 | $ 16,576 |
90 Days or More Past Due and Accruing | ||
Nonaccrual loans | $ 5 | |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Real estate: | ||
Past Due | 47 | $ 124 |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Real estate: | ||
Past Due | 7 | $ 19 |
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Real estate: | ||
Past Due | $ 5 |
Note 4 - Loans (Details) - Impa
Note 4 - Loans (Details) - Impaired Loans - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Real estate: | ||
Recorded investment, with no allowance | $ 2,285 | $ 1,033 |
Unpaid principal balance, with no allowance | 2,285 | 1,033 |
Average recorded investment, with no allowance | 2,358 | 1,205 |
Interest income recognized, with no allowance | 77 | 61 |
With an allowance recorded: | ||
Recorded investment, with allowance | 363 | 439 |
Unpaid principal balance, with allowance | 363 | 439 |
Related Allowance | 2 | 6 |
Average recorded investment, with allowance | 404 | 372 |
Real estate: | ||
Recorded investment | 2,648 | 1,472 |
Unpaid principal balance | 2,648 | 1,472 |
Related Allowance | 2 | 6 |
Average recorded investment | 2,762 | 1,577 |
Interest income recognized | 77 | 61 |
Residential Portfolio Segment [Member] | ||
Real estate: | ||
Recorded investment, with no allowance | 170 | |
Unpaid principal balance, with no allowance | 170 | |
Average recorded investment, with no allowance | 172 | |
Interest income recognized, with no allowance | 5 | |
Real estate: | ||
Recorded investment | 170 | |
Unpaid principal balance | 170 | |
Average recorded investment | 172 | |
Interest income recognized | 5 | |
Commercial Real Estate Portfolio Segment [Member] | ||
Real estate: | ||
Recorded investment, with no allowance | 2,285 | 860 |
Unpaid principal balance, with no allowance | 2,285 | 860 |
Average recorded investment, with no allowance | 2,358 | 896 |
Interest income recognized, with no allowance | 77 | |
Real estate: | ||
Recorded investment | 2,285 | 860 |
Unpaid principal balance | 2,285 | 860 |
Average recorded investment | 2,358 | 896 |
Interest income recognized | 77 | |
Construction and Land Development Real Estate Portfolio Segment [Member] | ||
Real estate: | ||
Average recorded investment, with no allowance | 133 | |
Interest income recognized, with no allowance | 56 | |
Real estate: | ||
Average recorded investment | 133 | |
Interest income recognized | 56 | |
Home Equity Portfolio Segment [Member] | ||
Real estate: | ||
Recorded investment, with no allowance | 3 | |
Unpaid principal balance, with no allowance | 3 | |
Average recorded investment, with no allowance | 4 | |
Real estate: | ||
Recorded investment | 3 | |
Unpaid principal balance | 3 | |
Average recorded investment | 4 | |
Commercial Portfolio Segment [Member] | ||
With an allowance recorded: | ||
Recorded investment, with allowance | 363 | 439 |
Unpaid principal balance, with allowance | 363 | 439 |
Related Allowance | 2 | 6 |
Average recorded investment, with allowance | 404 | 372 |
Real estate: | ||
Recorded investment | 363 | 439 |
Unpaid principal balance | 363 | 439 |
Related Allowance | 2 | 6 |
Average recorded investment | $ 404 | $ 372 |
Note 4 - Loans (Details) - Trou
Note 4 - Loans (Details) - Troubled Debt Restructured Loans $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Troubled Debt Restructurings: | ||
Number of Contracts | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 363 | $ 439 |
Post-Modification Outstanding Recorded Investment | $ 363 | $ 439 |
Commercial Portfolio Segment [Member] | ||
Troubled Debt Restructurings: | ||
Number of Contracts | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 363 | $ 439 |
Post-Modification Outstanding Recorded Investment | $ 363 | $ 439 |
Note 4 - Loans (Details) - Mort
Note 4 - Loans (Details) - Mortgage Servicing Rights - Mortgage Servicing Rights [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation Allowance for Impairment of Recognized Servicing Assets [Line Items] | ||
Balance, beginning of year | $ 9 | $ 42 |
Additions | 52 | 5 |
Reductions | (41) | (38) |
Balance, end of year | $ 20 | $ 9 |
Note 5 - Premises and Equipme64
Note 5 - Premises and Equipment (Details) - Premises and Equipment - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Premises and Equipment, Gross | $ 4,314 | $ 4,494 |
Accumulated depreciation and amortization | (2,894) | (3,034) |
1,420 | 1,460 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and Equipment, Gross | 1,082 | 1,389 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and Equipment, Gross | $ 3,232 | $ 3,105 |
Note 6 - Deposits (Details)
Note 6 - Deposits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 6 - Deposits (Details) [Line Items] | ||
FDIC Limit | $ 250,000 | |
FDIC Unisured Amount | 11,356,000 | $ 11,160,000 |
Interest-bearing Domestic Deposit, Brokered | 1,268,000 | |
Deposits | 372,642,000 | 356,065,000 |
Customer Concentration Risk [Member] | ||
Note 6 - Deposits (Details) [Line Items] | ||
Deposits | $ 24,500,000 | $ 22,500,000 |
Customer Concentration Risk [Member] | Deposits [Member] | ||
Note 6 - Deposits (Details) [Line Items] | ||
Concentration Risk, Percentage | 6.59% | 6.32% |
Note 6 - Deposits (Details) - S
Note 6 - Deposits (Details) - Scheduled Maturities $ in Thousands | Dec. 31, 2015USD ($) |
Scheduled Maturities [Abstract] | |
2,016 | $ 36,959 |
2,017 | 10,117 |
2,018 | 4,416 |
2,019 | 2,975 |
2,020 | 2,820 |
Total | $ 57,287 |
Note 7 - Securities Sold Unde67
Note 7 - Securities Sold Under Agreements to Repurchase (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Text Block [Abstract] | |
Repurchase Agreements, Maturity | 3 months |
Note 8 - Federal Home Loan Ba68
Note 8 - Federal Home Loan Bank Advances (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure Text Block [Abstract] | ||
Advances from Federal Home Loan Banks | $ 31,500,000 | $ 17,500,000 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Weighted Average Interest Rate | 0.44% | 0.23% |
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | $ 1,525,000 | $ 1,525,000 |
Long-term Federal Home Loan Bank Advances | $ 0 | $ 0 |
Note 9 - Subordinated Debentu69
Note 9 - Subordinated Debentures (Details) - USD ($) | Dec. 18, 2015 | Oct. 15, 2015 | Dec. 31, 2015 |
Note 9 - Subordinated Debentures (Details) [Line Items] | |||
Deferred Finance Costs, Net | $ 270,000 | ||
Debt Issuance Costs, Amortization Period | 10 years | ||
Subordinated Debt [Member] | |||
Note 9 - Subordinated Debentures (Details) [Line Items] | |||
Debt Instrument, Face Amount | $ 7,500,000 | ||
Proceeds from Debt, Net of Issuance Costs | 7,200,000 | ||
Deferred Finance Costs, Net | $ 277,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.75% | ||
Debt Instrumnet, Rebate Rate | 3.40% | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.35% | ||
Series C Preferred Stock [Member] | |||
Note 9 - Subordinated Debentures (Details) [Line Items] | |||
Stock Redeemed or Called During Period, Shares (in Shares) | 9,000 | 9,000 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details) | Dec. 31, 2015USD ($) |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets, Operating Loss Carryforwards | $ 0 |
Note 10 - Income Taxes (Detai71
Note 10 - Income Taxes (Details) - Income Tax Expense - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | ||
Federal | $ 264 | $ 181 |
State | 1 | 2 |
265 | 183 | |
Deferred: | ||
Federal | (24) | (187) |
(24) | (187) | |
Total income tax expense (benefit) | $ 241 | $ (4) |
Note 10 - Income Taxes (Detai72
Note 10 - Income Taxes (Details) - Income Tax Reconciliation | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Reconciliation [Abstract] | ||
Federal income tax at statutory rate | 34.00% | 34.00% |
Increase (decrease) in tax resulting from: | ||
Tax-exempt income | (20.60%) | (38.00%) |
Other | 1.20% | 3.50% |
Effective tax rates | 14.60% | (0.50%) |
Note 10 - Income Taxes (Detai73
Note 10 - Income Taxes (Details) - Deferred Tax Assets Liabilities - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for loan losses | $ 910 | $ 816 |
Deferred compensation | 273 | 243 |
Impairment of operating lease | 9 | |
Write-down of securities | 15 | 10 |
Write-down of OREO | 17 | |
Restricted stock awards | 23 | 7 |
Charitable contribution carryover | 166 | 120 |
Other | 79 | 123 |
Alternative minimum tax carryforward | 761 | 634 |
Net unrealized holding loss on available-for-sale securities | 98 | |
Gross deferred tax assets | 2,325 | 1,979 |
Deferred tax liabilities: | ||
Depreciation | (358) | (307) |
Deferred loan costs/fees | (453) | (437) |
Mortgage servicing rights | (693) | (536) |
Net unrealized holding gain on available-for-sale securities | (12) | |
Gross deferred tax liabilities | (1,504) | (1,292) |
Net deferred tax asset (included in other assets) | $ 821 | $ 687 |
Note 11 - Commitments and Con74
Note 11 - Commitments and Contingent Liabilities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating Leases, Rent Expense, Net | $ 936,000 | $ 935,000 |
Note 11 - Commitments and Con75
Note 11 - Commitments and Contingent Liabilities (Details) - Operating Leases Minimum Rent Due $ in Thousands | Dec. 31, 2015USD ($) |
Operating Leases Minimum Rent Due [Abstract] | |
2,016 | $ 1,018 |
2,017 | 1,004 |
2,018 | 977 |
2,019 | 914 |
2,020 | 1,339 |
Thereafter | 550 |
Total | $ 5,802 |
Note 12 - Fair Value Measurem76
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Available-for-sale securities | $ 71,517 | $ 83,805 |
US Government Agencies Debt Securities [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Available-for-sale securities | 10,463 | 18,064 |
US States and Political Subdivisions Debt Securities [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Available-for-sale securities | 14,669 | 16,599 |
Collateralized Mortgage Backed Securities [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Available-for-sale securities | 45,281 | 48,668 |
Other Debt Obligations [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Available-for-sale securities | 1,104 | 474 |
Fair Value, Inputs, Level 2 [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Available-for-sale securities | 71,517 | 83,805 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Available-for-sale securities | 71,517 | 83,805 |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Available-for-sale securities | 10,463 | 18,064 |
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Available-for-sale securities | 14,669 | 16,599 |
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Available-for-sale securities | 45,281 | 48,668 |
Fair Value, Inputs, Level 2 [Member] | Other Debt Obligations [Member] | Fair Value, Measurements, Recurring [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Recurring Basis [Line Items] | ||
Available-for-sale securities | $ 1,104 | $ 474 |
Note 12 - Fair Value Measurem77
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Nonrecurring Basis - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Asset Class | $ 93 | |
Impaired Loans [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Asset Class | 43 | |
Other Real Estate Owned [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Asset Class | 50 | |
Fair Value, Measurements, Nonrecurring [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Asset Class | $ 240 | 349 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Asset Class | 240 | 244 |
Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Asset Class | 105 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Asset Class | 240 | 349 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Asset Class | $ 240 | 244 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Other Real Estate Owned [Member] | ||
Note 12 - Fair Value Measurements (Details) - Assets Measured at Fair Value on a Nonrecurring Basis [Line Items] | ||
Asset Class | $ 105 |
Note 12 - Fair Value Measurem78
Note 12 - Fair Value Measurements (Details) - Financial Instruments - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Cash and cash equivalents | $ 28,890,000 | $ 19,820,000 |
Cash and cash equivalents, fair value | 28,890,000 | 19,820,000 |
Certificates of deposit | 1,250,000 | |
Certificates of deposit | 1,250,000 | |
Available-for-sale securities | 71,517,000 | 83,805,000 |
Federal Home Loan Bank stock | 2,047,000 | 1,801,000 |
Federal Home Loan Bank stock, fair value | 2,047,000 | 1,801,000 |
Loans held-for-sale | 2,167,000 | 5,374,000 |
Loans held-for-sale, fair value | 2,187,000 | 5,499,000 |
Loans, net | 323,695,000 | 283,381,000 |
Loans, net, fair value | 322,596,000 | 285,832,000 |
Accrued interest receivable | 1,143,000 | 1,095,000 |
Accrued interest receivable, fair value | 1,143,000 | 1,095,000 |
Bank owned life insurance | 7,389,000 | 7,184,000 |
Bank owned life insurance, fair value | 7,389,000 | 7,184,000 |
Financial liabilities: | ||
Deposits | 372,642,000 | 356,065,000 |
Deposits, fair value | 363,752,000 | 356,353,000 |
Securities sold under agreements to repurchase | 1,915,000 | 3,921,000 |
Securities sold under agreements to repurchase, fair value | 1,915,000 | 3,921,000 |
Long-term debt | 7,230,000 | |
Long-term debt | 7,339,000 | |
Federal Home Loan Bank advances | 31,500,000 | 17,500,000 |
Federal Home Loan Bank advances, fair value | 31,500,000 | 17,500,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets: | ||
Cash and cash equivalents, fair value | 28,890,000 | 19,820,000 |
Certificates of deposit | 1,250,000 | |
Federal Home Loan Bank stock, fair value | 2,047,000 | 1,801,000 |
Accrued interest receivable | 1,143,000 | 1,095,000 |
Accrued interest receivable, fair value | 1,143,000 | 1,095,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets: | ||
Available-for-sale securities | 71,517,000 | 83,805,000 |
Bank owned life insurance, fair value | 7,389,000 | 7,184,000 |
Financial liabilities: | ||
Deposits, fair value | 363,752,000 | 356,353,000 |
Securities sold under agreements to repurchase, fair value | 1,915,000 | 3,921,000 |
Long-term debt | 7,339,000 | |
Federal Home Loan Bank advances, fair value | 31,500,000 | 17,500,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial assets: | ||
Loans held-for-sale, fair value | 2,187,000 | 5,499,000 |
Loans, net, fair value | $ 322,596,000 | $ 285,832,000 |
Note 13 - Financial Instrumen79
Note 13 - Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure Text Block Supplement [Abstract] | ||
Credit Derivative, Maximum Exposure, Undiscounted | $ 3,391,000 | $ 1,888,000 |
Note 13 - Financial Instrumen80
Note 13 - Financial Instruments with Off-Balance Sheet Risk (Details) - Financial Instrument Liabilities with Off-balance-sheet Credit Risk - Derivative Financial Instruments, Liabilities [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Derivative liability notional amount | $ 128,597 | $ 89,075 |
Loan Origination Commitments [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Derivative liability notional amount | 40,708 | 17,151 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Derivative liability notional amount | 3,391 | 1,888 |
Construction Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Derivative liability notional amount | 15,647 | 6,960 |
Commercial Loan [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Derivative liability notional amount | 20,580 | 17,394 |
Consumer Loan [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Derivative liability notional amount | 621 | 677 |
Home Equity Line of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Derivative liability notional amount | $ 47,650 | $ 45,005 |
Note 14 - Related Party Trans81
Note 14 - Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 14 - Related Party Transactions (Details) [Line Items] | ||
Loans and Leases Receivable, Related Parties | $ 4,559,000 | |
Loans and Leases Receivable, Related Parties, Collections | 1,026,000 | |
Loans and Leases Receivable, Related Parties, Additions | 1,336,000 | |
Related Party Deposit Liabilities | 5,950,000 | $ 6,625,000 |
Related Party Transaction, Amounts of Transaction | 80,000 | 90,000 |
Related Party Transaction, Expenses from Transactions with Related Party | 60,000 | $ 65,000 |
Another Financial Institution [Member] | ||
Note 14 - Related Party Transactions (Details) [Line Items] | ||
Loans and Leases Receivable, Related Parties | $ 1,334,000 |
Note 16 - Other Comprehensive82
Note 16 - Other Comprehensive (Loss) Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Text Block [Abstract] | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI for Write-down of Securities, Tax | $ 45,000 | $ 48,000 |
Note 16 - Other Comprehensive83
Note 16 - Other Comprehensive (Loss) Income (Details) - Reclassification of Other Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Reclassification of Other Comprehensive Income (Loss) [Abstract] | |||
Net change in unrealized holding gain/loss on securities available-for-sale | $ (189) | $ 2,684 | |
Reclassification adjustment for realized gains in net income (1) | [1],[2] | (139) | (150) |
Other comprehensive (loss) income, before tax | (321) | 2,542 | |
Income tax benefit (expense) | 110 | (865) | |
Other comprehensive (loss) income, net of tax | $ (211) | $ 1,677 | |
[1] | Reclassification adjustments include realized securities gains and losses and writedowns of securities. The gains and losses have been reclassified out of other comprehensive (loss) income and affect certain captions in the consolidated statements of income as follows; the pre-tax amount is reflected in gain on available-for-sale securities, net of writedowns; the tax effect is included in income tax expense (benefit); and the after tax amount is included in net income. | ||
[2] | Reclassification adjustments include realized securities gains and losses and writedowns of securities. The gains and losses have been reclassified out of other comprehensive (loss) income and affect certain captions in the consolidated statements of income as follows; the pre-tax amount is reflected in writedowns and gain on sales of investments; the tax effect of $45,000 and $48,000 in December 31, 2015 and 2014, respectively, is included in income tax (benefit) expense; and the after tax amount is included in net income. |
Note 17 - Regulatory Matters (D
Note 17 - Regulatory Matters (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure Text Block [Abstract] | ||
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 4.00% |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
6.50% | ||
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 6.00% |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Tier One Risk Based Common Equity Capital to Risk Weighted Assets Buffer for Year Two | 0.625% | |
TierOneRiskBasedCommon Equity Capital to Risk Weighted Assets Buffer for Each Year | 0.625% | |
Tier One Risk Based Common Equity Capital to Risk Weighted Assets Buffer for Year Five | 2.50% | |
Risk Weights of Certain Assets | 150.00% | 100.00% |
Credit Conversion Factor, Unused Portion of Commitments with Maturities of Less Than One Year, Not Cancellable | 20.00% | 0.00% |
Deferred Tax Assets, Not Deducted from Capital, Percentage | 250.00% | 100.00% |
Risk Weight for Equity Exposures | 600.00% | 0.00% |
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval (in Dollars) | $ 2,109,000 |
Note 17 - Regulatory Matters 85
Note 17 - Regulatory Matters (Details) - Capital Amounts and Ratios - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Capital Amounts and Ratios [Abstract] | ||
Capital | $ 39,262 | $ 31,675 |
Capital to Risk Weighted Assets | 14.21% | 12.80% |
Capital Required for Capital Adequacy | $ 22,107 | $ 19,791 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Capital Required to be Well Capitalized | $ 27,634 | $ 24,739 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital | $ 36,234 | $ 28,914 |
Tier One Risk Based Capital to Risk Weighted Assets | 13.11% | 11.69% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 16,580 | $ 9,895 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 4.00% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 22,107 | $ 14,843 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 6.00% |
Common Equity Tier 1 capital (to Risk Weighted Assets) | $ 36,234 | |
Common Equity Tier 1 capital (to Risk Weighted Assets) | 13.11% | |
Common Equity Tier 1 capital (to Risk Weighted Assets) | $ 12,435 | |
Common Equity Tier 1 capital (to Risk Weighted Assets) | 4.50% | |
Common Equity Tier 1 capital (to Risk Weighted Assets) | $ 17,962 | |
Common Equity Tier 1 capital (to Risk Weighted Assets) | 6.50% | |
Tier One Leverage Capital | $ 36,234 | $ 28,914 |
Tier One Leverage Capital to Average Assets | 8.58% | 7.17% |
Tier One Leverage Capital Required for Capital Adequacy | $ 16,902 | $ 16,137 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized | $ 21,127 | $ 20,171 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
Note 18 - Employee Benefits (De
Note 18 - Employee Benefits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | ||
Defined Contribution Plan Employee Eligibility Age | 21 years | |
Defined Contribution Plan Vesting Period | 90 years | |
Defined Contribution Plan, Cost Recognized | $ 95,000 | $ 74,000 |
Pension and Other Postretirement Defined Benefit Plans, Liabilities | 804,000 | 715,000 |
Defined Benefit Plan, Net Periodic Benefit Cost | 126,000 | 101,000 |
Defined Benefit Plan, Benefits Paid | $ 37,000 | $ 34,000 |
Note 19 - Stock-based Compens87
Note 19 - Stock-based Compensation Plans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 19 - Stock-based Compensation Plans (Details) [Line Items] | ||
Option Exercise Price as Percentage of Fair Value of Common Stock | 100.00% | |
Share-based Compensation | $ 188,000 | $ 145,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 255 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 2.20 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 34,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares (in Shares) | 4,500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares (in Shares) | 15,500 | |
Allocated Share-based Compensation Expense | $ 10,000 | $ 0 |
1998 Stock Plan [Member] | ||
Note 19 - Stock-based Compensation Plans (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 142,000 | |
2011 Stock Award and Option Plan [Member] | ||
Note 19 - Stock-based Compensation Plans (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 100,000 | |
Restricted Stock [Member] | ||
Note 19 - Stock-based Compensation Plans (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 8,225 | 1,934 |
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other Than Options Granted in Period Fair Value | $ 177,000 | $ 41,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $ 21.52 | $ 21.50 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Share-based Compensation | $ 178,000 | $ 145,000 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 53,000 | $ 49,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 206,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 292 days | |
Employee Stock Option [Member] | ||
Note 19 - Stock-based Compensation Plans (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 2.59% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Forfeiture Rate | 0.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 20.13% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.27% |
Note 19 - Stock-based Compens88
Note 19 - Stock-based Compensation Plans (Details) - Restricted Stock Activity - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 19 - Stock-based Compensation Plans (Details) - Restricted Stock Activity [Line Items] | ||
Non-vested restricted stock awards at beginning of year | 9,792 | 19,524 |
Non-vested restricted stock awards at beginning of year | $ 23 | $ 22.95 |
Restricted shares granted | 8,225 | 1,934 |
Restricted shares granted | $ 21.52 | $ 21.50 |
Shares vested | (5,634) | (7,756) |
Shares vested | $ 23.24 | $ 23.08 |
Shares forfeited | (300) | (3,910) |
Shares forfeited | $ 23.52 | $ 23.09 |
Non-vested restricted stock awards at end of year | 12,083 | 9,792 |
Non-vested restricted stock awards at end of year | $ 21.92 | $ 23 |
Note 19 - Stock-based Compens89
Note 19 - Stock-based Compensation Plans (Details) - Stock Option Activity - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Option Activity [Abstract] | ||
Outstanding at beginning of year (in Shares) | 21,000 | 31,500 |
Outstanding at beginning of year | $ 31.50 | $ 30.67 |
Granted (in Shares) | 20,000 | |
Granted | $ 30 | |
Forfeited (in Shares) | (21,000) | (10,500) |
Forfeited | $ 31.50 | $ 29 |
Outstanding at end of year (in Shares) | 20,000 | 21,000 |
Outstanding at end of year | $ 30 | $ 31.50 |
Options exercisable at year-end (in Shares) | 4,500 | 21,000 |
Options exercisable at year-end | $ 30 | $ 31.50 |
Weighted-average fair value of options granted during the year | $ 2.20 |
Note 19 - Stock-based Compens90
Note 19 - Stock-based Compensation Plans (Details) - Fixed Stock Options Outstanding | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Fixed Stock Options Outstanding [Abstract] | |
| $ / shares | $ 30 |
| shares | 20,000 |
10 years | |
| shares | 4,500 |
| $ / shares | $ 30 |
Note 20 - Earnings Per Share (D
Note 20 - Earnings Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 20,000 | 21,000 |
Note 20 - Earnings Per Share 92
Note 20 - Earnings Per Share (Details) - Computation of EPS on Both Basic and Diluted Basis - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Basic earnings per share computation: | ||
Net income | $ 1,409 | $ 805 |
Preferred stock net accretion | (12) | (12) |
Net income available to common shareholders | 1,301 | 703 |
Cumulative preferred stock dividends | $ (96) | $ (90) |
Weighted average shares outstanding, before dilution (in Shares) | 953,539 | 880,618 |
Net income available to common shareholders | $ 1,301 | $ 703 |
Dilutive potential shares, stock options and awards (in Shares) | 3,075 | 4,415 |
Weighted average shares outstanding, basic (in Shares) | 953,539 | 880,618 |
Weighted average shares outstanding, assuming dilution (in Shares) | 956,614 | 885,033 |
Basic earnings per share (in Dollars per share) | $ 1.37 | $ 0.80 |
Diluted earnings per share (in Dollars per share) | $ 1.36 | $ 0.79 |
Diluted earnings per share computation: | ||
Net income | $ 1,409 | $ 805 |
Note 21 - Common Stock (Details
Note 21 - Common Stock (Details) - USD ($) | Nov. 17, 2015 | Nov. 10, 2015 | Nov. 05, 2015 | Dec. 31, 2015 | Dec. 31, 2014 |
Note 21 - Common Stock (Details) [Line Items] | |||||
Shares authorized to be Sold | 400,000 | ||||
Common Stock, No Par Value | $ 0 | $ 0 | $ 0 | ||
Shares Issued Price Per Share Authorized | $ 21 | ||||
Stock Issued During Period, Shares, New Issues | 51,473 | 400,000 | 451,473 | ||
Shares Issued, Price Per Share | $ 21 | $ 21 | $ 21 | ||
Proceeds from Issuance of Common Stock, Net | $ 8,503,000 | ||||
Payments of Stock Issuance Costs | $ 978,000 | ||||
Maximum [Member] | Option to Purchase Additional Share [Member] | |||||
Note 21 - Common Stock (Details) [Line Items] | |||||
Underwriter Option, Additional Shares Available for Purchase | 60,000 |
Note 22 - Preferred Stock (Deta
Note 22 - Preferred Stock (Details) - USD ($) $ in Thousands, $ / shares in Millions | Dec. 18, 2015 | Nov. 17, 2015 | Nov. 10, 2015 | Oct. 15, 2015 | Aug. 11, 2011 | Dec. 31, 2015 | Dec. 31, 2014 |
Note 22 - Preferred Stock (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 51,473 | 400,000 | 451,473 | ||||
Stock Redeemed or Called During Period, Value | $ 9,000 | ||||||
SBLF Preferred Stock [Member] | |||||||
Note 22 - Preferred Stock (Details) [Line Items] | |||||||
Stock Issued During Period, Shares, New Issues | 9,000 | ||||||
Preferred Stock, Liquidation Preference Per Share | $ 9 | ||||||
Series C Preferred Stock [Member] | |||||||
Note 22 - Preferred Stock (Details) [Line Items] | |||||||
Stock Redeemed or Called During Period, Shares | 9,000 | 9,000 | |||||
Stock Redeemed or Called During Period, Value | $ 9,020 | ||||||
First Quarter Dividend Rate [Member] | SBLF Preferred Stock [Member] | |||||||
Note 22 - Preferred Stock (Details) [Line Items] | |||||||
Preferred Stock, Dividend Rate, Percentage | 1.00% | 1.00% |
Note 25 - Subsequent Events (De
Note 25 - Subsequent Events (Details) - $ / shares | Feb. 17, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Note 25 - Subsequent Events (Details) [Line Items] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.56 | $ 0.56 | |
Subsequent Event [Member] | |||
Note 25 - Subsequent Events (Details) [Line Items] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.14 |
Note 26 - Parent Company Info96
Note 26 - Parent Company Information (Details) - Condensed Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and due from banks | $ 8,933 | $ 10,118 | |
Other assets | 15,214 | 14,659 | |
Total Assets | 444,780 | 408,840 | |
Liabilities and stockholders' equity | |||
Long-term subordinated debt | 7,230 | ||
Other liabilities | 1,751 | 1,882 | |
Total liabilities | 415,038 | 379,368 | |
Total stockholders' equity | 29,742 | 29,472 | $ 27,396 |
Total Liabilities and stockholders' equity | 444,780 | 408,840 | |
Parent Company [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and due from banks | 557 | 40 | |
Investment in subsidiaries | 36,045 | 29,095 | |
Due from subsidiary | 164 | 127 | |
Other assets | 321 | 210 | |
Total Assets | 37,087 | 29,472 | |
Liabilities and stockholders' equity | |||
Long-term subordinated debt | 7,230 | ||
Other liabilities | 115 | ||
Total liabilities | 7,345 | ||
Total stockholders' equity | 29,742 | 29,472 | |
Total Liabilities and stockholders' equity | $ 37,087 | $ 29,472 |
Note 26 - Parent Company Info97
Note 26 - Parent Company Information (Details) - Condensed Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Expense | ||
Interest on long-term debt | $ 61 | |
Salaries and employee benefits | 6,872 | $ 6,736 |
Forms and supplies | 162 | 172 |
Professional fees | 571 | 538 |
Directors’ fees | 248 | 254 |
Correspondent charges | 255 | 205 |
Income before tax benefit and equity in undistributed earnings of subsidiaries | 1,650 | 801 |
Income tax benefit | 241 | (4) |
Net income | 1,409 | 805 |
Parent Company [Member] | ||
Operating Income | ||
Dividend income from operating subsidiary | 525 | 680 |
Total operating income | 525 | 680 |
Operating Expense | ||
Interest on long-term debt | 61 | |
Salaries and employee benefits | 156 | 88 |
Forms and supplies | 6 | |
Professional fees | 79 | 38 |
Directors’ fees | 33 | 58 |
Correspondent charges | 63 | 40 |
Other expense | 29 | 13 |
Total operating expense | 421 | 243 |
Income before tax benefit and equity in undistributed earnings of subsidiaries | 104 | 437 |
Income tax benefit | 143 | 83 |
Equity in undistributed earnings of subsidiaries | 1,162 | 285 |
Net income | $ 1,409 | $ 805 |
Note 26 - Parent Company Info98
Note 26 - Parent Company Information (Details) - Condensed Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 1,409,000 | $ 805,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Stock based compensation | 188,000 | 145,000 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 8,542,000 | 39,000 |
Proceeds from the issuance of subordinated debt | 7,223,000 | |
Redemption of preferred stock | (9,000,000) | |
Excess tax benefit related to stock based compensation | 1,000 | |
Dividends paid - preferred stock | (96,000) | (90,000) |
Dividends paid - common stock | (562,000) | (492,000) |
Net increase in cash and cash equivalents | 9,070,000 | (18,770,000) |
Cash and cash equivalents at beginning of year | 19,820,000 | |
Cash and cash equivalents at end of year | 28,890,000 | 19,820,000 |
Parent Company [Member] | ||
Cash flows from operating activities: | ||
Net income | 1,409,000 | 805,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Equity in undistributed earnings of subsidiary | (1,162,000) | (285,000) |
Stock based compensation | 188,000 | 145,000 |
Other, net | (32,000) | (105,000) |
Amortization of long-term debt issuance costs | 7,000 | |
Net cash provided by operating activities | 410,000 | 560,000 |
Cash flows from investing activity: | ||
Investment in operating subsidiary | (6,000,000) | |
Net cash used in investing activity | (6,000,000) | |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 8,542,000 | 39,000 |
Proceeds from the issuance of subordinated debt | 7,223,000 | |
Redemption of preferred stock | (9,000,000) | |
Excess tax benefit related to stock based compensation | 1,000 | |
Dividends paid - preferred stock | (96,000) | (90,000) |
Dividends paid - common stock | (562,000) | (492,000) |
Net cash provided by (used in) financing activities | 6,107,000 | (542,000) |
Net increase in cash and cash equivalents | 517,000 | 18,000 |
Cash and cash equivalents at beginning of year | 40,000 | 22,000 |
Cash and cash equivalents at end of year | $ 557,000 | $ 40,000 |