Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 01, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'ENB Financial Corp | ' |
Entity Central Index Key | '0001437479 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 0 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | ' |
Cash and due from banks | $14,663 | $15,596 | $13,492 |
Interest bearing deposits in other banks | 30,358 | 8,981 | 28,144 |
Total cash and cash equivalents | 45,021 | 24,577 | 41,636 |
Securities available for sale (at fair value) | 307,797 | 300,328 | 305,442 |
Loans held for sale | 108 | 59 | 280 |
Loans (net of unearned income) | 448,150 | 438,220 | 418,545 |
Less: Allowance for loan losses | 6,968 | 7,219 | 7,273 |
Net loans | 441,182 | 431,001 | 411,272 |
Premises and equipment | 22,606 | 23,012 | 21,527 |
Regulatory stock | 4,034 | 3,660 | 3,853 |
Bank owned life insurance | 20,239 | 19,911 | 19,552 |
Other assets | 9,475 | 9,708 | 8,786 |
Total assets | 850,462 | 812,256 | 812,348 |
Deposits: | ' | ' | ' |
Non-interest bearing | 183,149 | 173,070 | 168,967 |
Interest bearing | 500,552 | 483,556 | 481,741 |
Total deposits | 683,701 | 656,626 | 650,708 |
Short-term borrowings | 5,410 | 3,900 | ' |
Long-term debt | 69,150 | 65,000 | 68,000 |
Accounts payable for security purchases not yet settled | ' | ' | 6,859 |
Other liabilities | 2,586 | 2,954 | 2,682 |
Total liabilities | 760,847 | 728,480 | 728,249 |
Stockholders' equity: | ' | ' | ' |
Common stock, par value $0.20; Shares: Authorized 12,000,000 Issued 2,869,557 and Outstanding 2,856,993 (Issued 2,869,557 and Outstanding 2,856,026 as of 12-31-13; Issued 2,869,557 and Outstatnding 2,851,472 as of 6-30-13) | 574 | 574 | 574 |
Capital surplus | 4,361 | 4,353 | 4,337 |
Retained earnings | 85,229 | 83,165 | 80,767 |
Accumulated other comprehensive loss , net of tax | -189 | -3,940 | -1,083 |
Less: Treasury stock cost on 12,564 shares (13,531 shares as of 12-31-13 and 18,805 shares as of 6-30-13) | -360 | -376 | -496 |
Total stockholders' equity | 89,615 | 83,776 | 84,099 |
Total liabilities and stockholders' equity | $850,462 | $812,256 | $812,348 |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' | ' |
Common stock, par value | $0.20 | $0.20 | $0.20 |
Common stock, authorized | 12,000,000 | 12,000,000 | 12,000,000 |
Common stock, issued | 2,869,557 | 2,869,557 | 2,869,557 |
Common stock, outstanding | 2,856,993 | 2,856,026 | 2,851,472 |
Treasury shares | 12,564 | 13,531 | 18,085 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest and dividend income: | ' | ' | ' | ' |
Interest and fees on loans | $4,817 | $4,702 | $9,596 | $9,458 |
Interest on securities available for sale: | ' | ' | ' | ' |
Taxable | 1,063 | 903 | 2,222 | 1,782 |
Tax-exempt | 849 | 956 | 1,720 | 1,927 |
Interest on deposits at other banks | 19 | 20 | 27 | 38 |
Dividend income | 77 | 28 | 132 | 57 |
Total interest and dividend income | 6,825 | 6,609 | 13,697 | 13,262 |
Interest expense: | ' | ' | ' | ' |
Interest on deposits | 777 | 891 | 1,566 | 1,798 |
Interest on borrowings | 440 | 457 | 868 | 980 |
Total interest expense | 1,217 | 1,348 | 2,434 | 2,778 |
Net interest income | 5,608 | 5,261 | 11,263 | 10,484 |
Credit for loan losses | -100 | -100 | -300 | -150 |
Net interest income after credit for loan losses | 5,708 | 5,361 | 11,563 | 10,634 |
Other income: | ' | ' | ' | ' |
Trust and investment services income | 285 | 290 | 650 | 610 |
Service fees | 424 | 427 | 814 | 839 |
Commissions | 494 | 507 | 960 | 976 |
Gains on securities transactions, net | 582 | 741 | 1,267 | 1,679 |
Impairment losses on securities: | ' | ' | ' | ' |
Impairment gains on investment securities | ' | ' | 15 | 39 |
Non-credit related losses on securities not expected to be sold in other comprehensive income before tax | ' | -93 | -37 | -152 |
Net impairment losses on investment securities | ' | -93 | -22 | -113 |
Gains on sale of mortgages | 92 | 90 | 130 | 188 |
Earnings on bank owned life insurance | 159 | 160 | 314 | 318 |
Other income | 132 | 107 | 235 | 235 |
Total other income | 2,168 | 2,229 | 4,348 | 4,732 |
Operating expenses: | ' | ' | ' | ' |
Salaries and employee benefits | 3,481 | 3,184 | 6,911 | 6,352 |
Occupancy | 459 | 416 | 975 | 841 |
Equipment | 268 | 249 | 528 | 468 |
Advertising & marketing | 125 | 141 | 255 | 239 |
Computer software & data processing | 396 | 404 | 795 | 807 |
Shares tax | 183 | 215 | 366 | 429 |
Professional services | 353 | 346 | 680 | 628 |
Other expense | 524 | 521 | 1,077 | 1,088 |
Total operating expenses | 5,789 | 5,476 | 11,587 | 10,852 |
Income before income taxes | 2,087 | 2,114 | 4,324 | 4,514 |
Provision for federal income taxes | 347 | 292 | 746 | 684 |
Net income | $1,740 | $1,822 | $3,578 | $3,830 |
Earnings per share of common stock | $0.61 | $0.64 | $1.25 | $1.34 |
Cash dividends paid per share | $0.27 | $0.26 | $0.53 | $0.52 |
Weighted average shares outstanding | 2,854,878 | 2,852,534 | 2,854,498 | 2,851,948 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Consolidated Statements Of Comprehensive Income | ' | ' | ' | ' |
Net income | $1,740 | $1,822 | $3,578 | $3,830 |
Other-than-temporarily impaired securities available for sale: | ' | ' | ' | ' |
Gains arising during the period | ' | ' | 15 | 39 |
Income tax effect | ' | ' | -5 | -13 |
[OtherThanTemporaryImpairmentGainsLossesArisingDuringQuarterNet] | ' | ' | 10 | 26 |
Losses recognized in earnings | ' | 93 | 22 | 113 |
Income tax effect | ' | -32 | -7 | -39 |
[OtherThanTemporaryImpairmentLossesInvestmentsPortionInOtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParentAvailableforsaleSecurities] | ' | 61 | 15 | 74 |
Unrealized holding gains on other-than-temporarily impaired securities available for sale, net of tax | ' | 61 | 25 | 100 |
Securities available for sale not other-than-temporarily impaired: | ' | ' | ' | ' |
Gains (losses) arising during the period | 2,972 | -9,091 | 6,912 | -10,209 |
Income tax effect | -1,010 | 3,091 | -2,350 | 3,471 |
[OtherComprehensiveIncomeLossAvailableForSaleSecuritiesAdjustmentBeforeReclassificationAdjustmentsNetOfTax] | 1,962 | -6,000 | 4,562 | -6,738 |
Gains recognized in earnings | -582 | -741 | -1,267 | -1,679 |
Income tax effect | 198 | 252 | 431 | 571 |
[OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesNetOfTax] | -384 | -489 | -836 | -1,108 |
Unrealized holding gains (losses) on securities available for sale not other-than-temporarily impaired, net of tax | 1,578 | -6,489 | 3,726 | -7,846 |
Other comprehensive income (loss) , net of tax | 1,578 | -6,428 | 3,751 | -7,746 |
Comprehensive Income (loss) | $3,318 | ($4,606) | $7,329 | ($3,916) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $3,578 | $3,830 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Net amortization of securities premiums and discounts and loan fees | 2,268 | 2,112 |
Increase in interest receivable | -161 | -217 |
Decrease in interest payable | -14 | -58 |
Credit for loan losses | -300 | -150 |
Gains on securities transactions, net | -1,267 | -1,679 |
Impairment losses on securities | 22 | 113 |
Gains on sale of mortgages | -130 | -188 |
Loans originated for sale | -4,266 | -9,134 |
Proceeds from sales of loans | 4,347 | 9,810 |
Earnings on bank-owned life insurance | -314 | -318 |
Gain on sale of other real estate owned | -9 | ' |
Depreciation of premises and equipment and amortization of software | 719 | 657 |
Deferred income tax | 309 | -148 |
Other assets and other liabilities, net | -2,127 | 841 |
Net cash provided by operating activities | 2,655 | 5,471 |
Securities available for sale: | ' | ' |
Proceeds from maturities, calls, and repayments | 14,613 | 30,906 |
Proceeds from sales | 69,513 | 35,174 |
Purchases | -86,877 | -71,300 |
Purchase of other real estate owned | -56 | ' |
Proceeds from sale of other real estate owned | 48 | ' |
Purchase of regulatory bank stock | -685 | -230 |
Redemptions of regulatory bank stock | 311 | 525 |
Purchase of bank-owned life insurance | -14 | -18 |
Net increase in loans | -9,939 | -4,313 |
Purchases of premises and equipment | -261 | -1,246 |
Purchase of computer software | -109 | -40 |
Net cash used for investing activities | -13,456 | -10,542 |
Cash flows from financing activities: | ' | ' |
Net increase in demand, NOW, and savings accounts | 27,329 | 20,034 |
Net decrease in time deposits | -254 | -2,487 |
Net increase in short-term borrowings | 1,510 | ' |
Proceeds from long-term debt | 9,150 | 5,000 |
Repayments of long-term debt | -5,000 | -10,000 |
Dividends paid | -1,514 | -1,484 |
Treasury stock sold | 239 | 238 |
Treasury stock purchased | -215 | -254 |
Net cash provided by financing activities | 31,245 | 11,047 |
Increase in cash and cash equivalents | 20,444 | 5,976 |
Cash and cash equivalents at beginning of period | 24,577 | 35,660 |
Cash and cash equivalents at end of period | 45,021 | 41,636 |
Supplemental disclosures of cash flow information: | ' | ' |
Interest paid | 2,448 | 2,836 |
Income taxes paid | 250 | 750 |
Supplemental disclosure of non-cash investing and financing activities: | ' | ' |
Securities purchased not yet settled | ' | 6,859 |
Net transfer of other real estate owned from loans | 56 | ' |
Fair value adjustments for securities available for sale | $5,683 | ($11,736) |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended | |
Jun. 30, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Basis of Presentation | ' | |
1 | Basis of Presentation | |
The accompanying unaudited consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and to general practices within the banking industry. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all significant adjustments considered necessary for fair presentation have been included. Certain items previously reported have been reclassified to conform to the current period’s reporting format. Such reclassifications did not affect net income or stockholders’ equity. | ||
ENB Financial Corp (“the Corporation”) is the bank holding company for its wholly-owned subsidiary Ephrata National Bank (the “Bank”). This Form 10-Q, for the second quarter of 2014, is reporting on the results of operations and financial condition of ENB Financial Corp. | ||
Operating results for the three and six months ended June 30, 2014, are not necessarily indicative of the results that may be expected for the year ended December 31, 2014. For further information, refer to the consolidated financial statements and footnotes thereto included in ENB Financial Corp’s Annual Report on Form 10-K for the year ended December 31, 2013. |
Securities_Available_for_Sale
Securities Available for Sale | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Securities Available for Sale | ' | ||||||||||||||||||||||||
2 | Securities Available for Sale | ||||||||||||||||||||||||
The amortized cost and fair value of securities held at June 30, 2014, and December 31, 2013, are as follows: | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
U.S. government agencies | 38,865 | 56 | (983 | ) | 37,938 | ||||||||||||||||||||
U.S. agency mortgage-backed securities | 55,849 | 593 | (249 | ) | 56,193 | ||||||||||||||||||||
U.S. agency collateralized mortgage obligations | 58,697 | 110 | (738 | ) | 58,069 | ||||||||||||||||||||
Corporate bonds | 46,996 | 240 | (224 | ) | 47,012 | ||||||||||||||||||||
Obligations of states and political subdivisions | 102,358 | 2,102 | (1,201 | ) | 103,259 | ||||||||||||||||||||
Total debt securities | 302,765 | 3,101 | (3,395 | ) | 302,471 | ||||||||||||||||||||
Marketable equity securities | 5,318 | 8 | — | 5,326 | |||||||||||||||||||||
Total securities available for sale | 308,083 | 3,109 | (3,395 | ) | 307,797 | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
U.S. government agencies | 41,671 | 148 | (2,152 | ) | 39,667 | ||||||||||||||||||||
U.S. agency mortgage-backed securities | 52,502 | 101 | (680 | ) | 51,923 | ||||||||||||||||||||
U.S. agency collateralized mortgage obligations | 42,465 | 161 | (938 | ) | 41,688 | ||||||||||||||||||||
Private collateralized mortgage obligations | 4,135 | 44 | (138 | ) | 4,041 | ||||||||||||||||||||
Corporate bonds | 56,437 | 430 | (673 | ) | 56,194 | ||||||||||||||||||||
Obligations of states and political subdivisions | 103,936 | 1,057 | (3,349 | ) | 101,644 | ||||||||||||||||||||
Total debt securities | 301,146 | 1,941 | (7,930 | ) | 295,157 | ||||||||||||||||||||
Marketable equity securities | 5,151 | 20 | — | 5,171 | |||||||||||||||||||||
Total securities available for sale | 306,297 | 1,961 | (7,930 | ) | 300,328 | ||||||||||||||||||||
The amortized cost and fair value of debt securities available for sale at June 30, 2014, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to certain call or prepayment provisions. | |||||||||||||||||||||||||
CONTRACTUAL MATURITY OF DEBT SECURITIES | |||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||
Amortized | |||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
$ | $ | ||||||||||||||||||||||||
Due in one year or less | 29,155 | 29,204 | |||||||||||||||||||||||
Due after one year through five years | 105,716 | 105,395 | |||||||||||||||||||||||
Due after five years through ten years | 120,871 | 119,887 | |||||||||||||||||||||||
Due after ten years | 47,023 | 47,985 | |||||||||||||||||||||||
Total debt securities | 302,765 | 302,471 | |||||||||||||||||||||||
Securities available for sale with a par value of $89,203,000 and $86,392,000 at June 30, 2014, and December 31, 2013, respectively, were pledged or restricted for public funds, borrowings, or other purposes as required by law. The fair value of these pledged securities was $92,591,000 at June 30, 2014, and $86,993,000 at December 31, 2013. | |||||||||||||||||||||||||
Proceeds from active sales of debt securities available for sale, along with the associated gross realized gains and gross realized losses, are shown below. Realized gains and losses are computed on the basis of specific identification. | |||||||||||||||||||||||||
PROCEEDS FROM SALES OF DEBT SECURITIES AVAILABLE FOR SALE | |||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||
Proceeds from sales | 28,209 | 14,891 | 69,470 | 35,174 | |||||||||||||||||||||
Gross realized gains | 759 | 752 | 1,733 | 1,702 | |||||||||||||||||||||
Gross realized losses | 195 | 11 | 484 | 23 | |||||||||||||||||||||
SUMMARY OF GAINS AND LOSSES ON DEBT SECURITIES AVAILABLE FOR SALE | |||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||
Gross realized gains | 759 | 752 | 1,733 | 1,702 | |||||||||||||||||||||
Gross realized losses | 195 | 11 | 484 | 23 | |||||||||||||||||||||
Impairment on securities | — | 93 | 22 | 113 | |||||||||||||||||||||
Total gross realized losses | 195 | 104 | 506 | 136 | |||||||||||||||||||||
Net gains on securities | 564 | 648 | 1,227 | 1,566 | |||||||||||||||||||||
The bottom portion of the above table shows the net gains on security transactions, including any impairment taken on securities held by the Corporation. The net gain or loss from security transactions is also reflected on the Corporation’s Consolidated Statements of Income and Consolidated Statements of Cash Flows. | |||||||||||||||||||||||||
Management evaluates all of the Corporation’s securities for other than temporary impairment (OTTI) on a periodic basis. Prior to June 30, 2014, the Corporation had a small number of private collateralized mortgage obligations (PCMOs) of which all but one had impairment recorded at some point in the past. During the second quarter of 2014, the three PCMOs remaining in the Corporation’s securities portfolio were sold. No other securities in the portfolio had other-than-temporary impairment recorded in 2014. | |||||||||||||||||||||||||
Information pertaining to securities with gross unrealized losses at June 30, 2014, and December 31, 2013, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: | |||||||||||||||||||||||||
TEMPORARY IMPAIRMENTS OF SECURITIES | |||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||
Less than 12 months | More than 12 months | Total | |||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||
U.S. government agencies | 5,734 | (15 | ) | 19,221 | (968 | ) | 24,955 | (983 | ) | ||||||||||||||||
U.S. agency mortgage-backed securities | 3,309 | (27 | ) | 8,008 | (222 | ) | 11,317 | (249 | ) | ||||||||||||||||
U.S. agency collateralized mortgage obligations | 30,649 | (391 | ) | 11,208 | (347 | ) | 41,857 | (738 | ) | ||||||||||||||||
Corporate bonds | 12,623 | (75 | ) | 7,649 | (149 | ) | 20,272 | (224 | ) | ||||||||||||||||
Obligations of states & political subdivisions | 10,403 | (97 | ) | 34,418 | (1,104 | ) | 44,821 | (1,201 | ) | ||||||||||||||||
Total temporarily impaired securities | 62,718 | (605 | ) | 80,504 | (2,790 | ) | 143,222 | (3,395 | ) | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
U.S. government agencies | 33,043 | (1,735 | ) | 3,603 | (417 | ) | 36,646 | (2,152 | ) | ||||||||||||||||
U.S. agency mortgage-backed securities | 31,810 | (659 | ) | 4,938 | (21 | ) | 36,748 | (680 | ) | ||||||||||||||||
U.S. agency collateralized mortgage obligations | 28,138 | (938 | ) | — | — | 28,138 | (938 | ) | |||||||||||||||||
Private collateralized mortgage obligations | 1,384 | (59 | ) | 1,790 | (79 | ) | 3,174 | (138 | ) | ||||||||||||||||
Corporate bonds | 32,349 | (664 | ) | 2,010 | (9 | ) | 34,359 | (673 | ) | ||||||||||||||||
Obligations of states & political subdivisions | 58,920 | (2,778 | ) | 8,950 | (571 | ) | 67,870 | (3,349 | ) | ||||||||||||||||
Total temporarily impaired securities | 185,644 | (6,833 | ) | 21,291 | (1,097 | ) | 206,935 | (7,930 | ) | ||||||||||||||||
There were no equity securities that were considered temporarily impaired at June 30, 2014, or December 31, 2013. In the debt security portfolio, there are 119 positions that were considered temporarily impaired at June 30, 2014. There were no instruments considered to be other-than-temporarily impaired at June 30, 2014. | |||||||||||||||||||||||||
The Corporation evaluates both equity and fixed maturity positions for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic and market concerns warrant such evaluation. U.S. generally accepted accounting principles provide for the bifurcation of OTTI into two categories: (a) the amount of the total OTTI related to a decrease in cash flows expected to be collected from the debt security (the credit loss), which is recognized in earnings, and (b) the amount of total OTTI related to all other factors, which is recognized, net of taxes, as a component of accumulated other comprehensive income. This accounting treatment was only applicable to two of the Corporation’s PCMOs in the first quarter of 2014, but both of those securities were sold in the second quarter of 2014, resulting in no further impairment charges. | |||||||||||||||||||||||||
The prior impairment on the PCMOs was a result of a deterioration of expected cash flows on those securities due to higher projected credit losses than the amount of credit protection carried by those securities. Specifically, the foreclosure and severity rates had been running at levels where expected principal losses were in excess of the remaining credit protection on those instruments. The projected principal losses were based on prepayment speeds that were equal to or slower than the actual last twelve-month prepayment speeds the particular securities had experienced. Every quarter prior to the second quarter of 2014, management evaluated third-party reporting that showed projected principal losses based on various prepayment speed and severity rate scenarios. Based on the assumption that all loans over 60 days delinquent would default and at a severity rate equal to or above that previously experienced, and based on historical and expected prepayment speeds, management determined that it was appropriate to take an additional $22,000 of impairment on one PCMO in the first quarter of 2014. Because all of the remaining PCMOs were sold in the second quarter of 2014, no further impairment was recorded on these bonds in 2014 and future impairment analysis will cease for this segment since it was completely sold off. | |||||||||||||||||||||||||
The following tables reflect the amortized cost, market value, and unrealized loss as of June 30, 2014 and 2013, on the PCMO securities held which had impairment taken in each respective year. In 2014, there was one PCMO that had impairment taken during the first quarter prior to the sale of the remaining PCMO portfolio. In 2013, there were three PCMOs that had impairment taken in the year-to-date period. The values shown below are after the Corporation recorded year-to-date impairment charges of $22,000 through June 30, 2014, and $113,000 through June 30, 2013. The $22,000 and $113,000 are deemed to be credit losses and are the amounts that management expects the principal losses would be by the time these securities mature. The remaining $288,000 of unrealized losses as of June 30, 2013, was deemed to be market value losses that were considered temporary. Because all of the remaining PCMO securities were sold during the second quarter of 2014, there are no temporary market value losses remaining at June 30, 2014. | |||||||||||||||||||||||||
SECURITY IMPAIRMENT CHARGES | |||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||
Book | Market | Unrealized | Impairment | ||||||||||||||||||||||
Value | Value | Loss | Charge | ||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||
Impaired private collateralized mortgage obligations | — | — | — | (22 | ) | ||||||||||||||||||||
As of June 30, 2013 | |||||||||||||||||||||||||
Book | Market | Unrealized | Impairment | ||||||||||||||||||||||
Value | Value | Loss | Charge | ||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||
Impaired private collateralized mortgage obligations | 4,675 | 4,387 | (288 | ) | (113 | ) | |||||||||||||||||||
The following table provides a cumulative roll forward of credit losses recognized in earnings for debt securities held: | |||||||||||||||||||||||||
CREDIT LOSSES RECOGNIZED IN EARNINGS ON DEBT SECURITIES | |||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||
Beginning balance | 1,170 | 997 | 1,148 | 977 | |||||||||||||||||||||
Credit losses on debt securities for which other-than- | |||||||||||||||||||||||||
temporary impairment has not been previously recognized | — | — | — | — | |||||||||||||||||||||
Additional credit losses on debt securities for which other- | |||||||||||||||||||||||||
than-temporary impairment was previously recognized | — | 93 | 22 | 113 | |||||||||||||||||||||
Sale of debt securities with previously recognized impairment | (1,170 | ) | — | (1,170 | ) | — | |||||||||||||||||||
Ending balance | — | 1,090 | — | 1,090 | |||||||||||||||||||||
With the sale of the remaining PCMO portfolio during the second quarter of 2014, there are no remaining impairment balances as of June 30, 2014. |
Loans_and_Allowance_for_Loan_L
Loans and Allowance for Loan Losses | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||
3 | Loans and Allowance for Loan Losses | ||||||||||||||||||||||||||||
The following table presents the Corporation’s loan portfolio by category of loans as of June 30, 2014, and December 31, 2013. | |||||||||||||||||||||||||||||
LOAN PORTFOLIO | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
$ | $ | ||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 95,354 | 97,243 | |||||||||||||||||||||||||||
Agriculture mortgages | 129,751 | 114,533 | |||||||||||||||||||||||||||
Construction | 8,507 | 9,399 | |||||||||||||||||||||||||||
Total commercial real estate | 233,612 | 221,175 | |||||||||||||||||||||||||||
Consumer real estate (a) | |||||||||||||||||||||||||||||
1-4 family residential mortgages | 123,039 | 127,253 | |||||||||||||||||||||||||||
Home equity loans | 9,994 | 10,889 | |||||||||||||||||||||||||||
Home equity lines of credit | 24,158 | 21,097 | |||||||||||||||||||||||||||
Total consumer real estate | 157,191 | 159,239 | |||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 27,891 | 28,719 | |||||||||||||||||||||||||||
Tax-free loans | 12,573 | 10,622 | |||||||||||||||||||||||||||
Agriculture loans | 12,757 | 14,054 | |||||||||||||||||||||||||||
Total commercial and industrial | 53,221 | 53,395 | |||||||||||||||||||||||||||
Consumer | 3,723 | 4,063 | |||||||||||||||||||||||||||
Gross loans prior to deferred fees | 447,747 | 437,872 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Deferred loan costs, net | (403 | ) | (348 | ) | |||||||||||||||||||||||||
Allowance for loan losses | 6,968 | 7,219 | |||||||||||||||||||||||||||
Total net loans | 441,182 | 431,001 | |||||||||||||||||||||||||||
(a) | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $8,138,000 and $4,866,000 as of June 30, 2014, and December 31, 2013, respectively. | ||||||||||||||||||||||||||||
The Corporation grades commercial credits differently than consumer credits. The following tables represent all of the Corporation’s commercial credit exposures by internally assigned grades as of June 30, 2014 and December 31, 2013. The grading analysis estimates the capability of the borrower to repay the contractual obligations under the loan agreements as scheduled. The Corporation's internal commercial credit risk grading system is based on experiences with similarly graded loans. | |||||||||||||||||||||||||||||
The Corporation's internally assigned grades for commercial credits are as follows: | |||||||||||||||||||||||||||||
· | Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. | ||||||||||||||||||||||||||||
· | Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. | ||||||||||||||||||||||||||||
· | Substandard – loans that have a well-defined weakness based on objective evidence and characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||||||||||
· | Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. | ||||||||||||||||||||||||||||
· | Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted. | ||||||||||||||||||||||||||||
COMMERCIAL CREDIT EXPOSURE | |||||||||||||||||||||||||||||
CREDIT RISK PROFILE BY INTERNALLY ASSIGNED GRADE | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
30-Jun-14 | Commercial | Agriculture | Construction | Commercial | Tax-free | Agriculture | Total | ||||||||||||||||||||||
Mortgages | Mortgages | and | Loans | Loans | |||||||||||||||||||||||||
Industrial | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||
Pass | 84,690 | 125,996 | 6,142 | 26,578 | 12,573 | 12,201 | 268,180 | ||||||||||||||||||||||
Special Mention | 4,415 | 1,266 | — | 211 | — | 350 | 6,242 | ||||||||||||||||||||||
Substandard | 6,249 | 2,489 | 2,365 | 1,102 | — | 206 | 12,411 | ||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | ||||||||||||||||||||||
Loss | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 95,354 | 129,751 | 8,507 | 27,891 | 12,573 | 12,757 | 286,833 | ||||||||||||||||||||||
31-Dec-13 | Commercial | Agriculture | Construction | Commercial | Tax-free | Agriculture | Total | ||||||||||||||||||||||
Mortgages | Mortgages | and | Loans | Loans | |||||||||||||||||||||||||
Industrial | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||
Pass | 85,683 | 112,253 | 7,402 | 27,082 | 10,390 | 13,425 | 256,235 | ||||||||||||||||||||||
Special Mention | 4,996 | — | — | 213 | — | 293 | 5,502 | ||||||||||||||||||||||
Substandard | 6,564 | 2,280 | 1,997 | 1,424 | 232 | 336 | 12,833 | ||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | ||||||||||||||||||||||
Loss | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 97,243 | 114,533 | 9,399 | 28,719 | 10,622 | 14,054 | 274,570 | ||||||||||||||||||||||
For consumer loans, the Corporation evaluates credit quality based on whether the loan is considered performing or non-performing. Non-performing loans consist of those loans greater than 90 days delinquent and nonaccrual loans. The following tables present the balances of consumer loans by classes of the loan portfolio based on payment performance as of June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
CONSUMER CREDIT EXPOSURE | |||||||||||||||||||||||||||||
CREDIT RISK PROFILE BY PAYMENT PERFORMANCE | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
30-Jun-14 | 1-4 Family | Home Equity | Home Equity | Consumer | Total | ||||||||||||||||||||||||
Residential | Loans | Lines of | |||||||||||||||||||||||||||
Mortgages | Credit | ||||||||||||||||||||||||||||
Payment performance: | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Performing | 122,757 | 9,994 | 24,158 | 3,723 | 160,632 | ||||||||||||||||||||||||
Non-performing | 282 | — | — | — | 282 | ||||||||||||||||||||||||
Total | 123,039 | 9,994 | 24,158 | 3,723 | 160,914 | ||||||||||||||||||||||||
31-Dec-13 | 1-4 Family | Home Equity | Home Equity | Consumer | Total | ||||||||||||||||||||||||
Residential | Loans | Lines of | |||||||||||||||||||||||||||
Mortgages | Credit | ||||||||||||||||||||||||||||
Payment performance: | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Performing | 127,039 | 10,889 | 21,097 | 4,046 | 163,071 | ||||||||||||||||||||||||
Non-performing | 214 | — | — | 17 | 231 | ||||||||||||||||||||||||
Total | 127,253 | 10,889 | 21,097 | 4,063 | 163,302 | ||||||||||||||||||||||||
The following tables present an age analysis of the Corporation’s past due loans, segregated by loan portfolio class, as of June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
AGING OF LOANS RECEIVABLE | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Greater | Receivable > | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | than 90 | Total Past | Total Loans | 90 Days and | ||||||||||||||||||||||||
30-Jun-14 | Past Due | Past Due | Days | Due | Current | Receivable | Accruing | ||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | — | 197 | — | 197 | 95,157 | 95,354 | — | ||||||||||||||||||||||
Agriculture mortgages | 62 | — | — | 62 | 129,689 | 129,751 | — | ||||||||||||||||||||||
Construction | — | — | — | — | 8,507 | 8,507 | — | ||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
1-4 family residential mortgages | 921 | 122 | 282 | 1,325 | 121,714 | 123,039 | 282 | ||||||||||||||||||||||
Home equity loans | 18 | — | — | 18 | 9,976 | 9,994 | — | ||||||||||||||||||||||
Home equity lines of credit | 13 | — | — | 13 | 24,145 | 24,158 | — | ||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 40 | — | 12 | 52 | 27,839 | 27,891 | — | ||||||||||||||||||||||
Tax-free loans | — | — | — | — | 12,573 | 12,573 | — | ||||||||||||||||||||||
Agriculture loans | — | — | — | — | 12,757 | 12,757 | — | ||||||||||||||||||||||
Consumer | 3 | 5 | — | 8 | 3,715 | 3,723 | — | ||||||||||||||||||||||
Total | 1,057 | 324 | 294 | 1,675 | 446,072 | 447,747 | 282 | ||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Greater | Receivable > | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | than 90 | Total Past | Total Loans | 90 Days and | ||||||||||||||||||||||||
31-Dec-13 | Past Due | Past Due | Days | Due | Current | Receivable | Accruing | ||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | — | 205 | — | 205 | 97,038 | 97,243 | — | ||||||||||||||||||||||
Agriculture mortgages | 69 | — | — | 69 | 114,464 | 114,533 | — | ||||||||||||||||||||||
Construction | — | — | — | — | 9,399 | 9,399 | — | ||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
1-4 family residential mortgages | 1,089 | 401 | 214 | 1,704 | 125,549 | 127,253 | 214 | ||||||||||||||||||||||
Home equity loans | 57 | — | — | 57 | 10,832 | 10,889 | — | ||||||||||||||||||||||
Home equity lines of credit | 15 | 13 | — | 28 | 21,069 | 21,097 | — | ||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 20 | — | — | 20 | 28,699 | 28,719 | — | ||||||||||||||||||||||
Tax-free loans | — | — | — | — | 10,622 | 10,622 | — | ||||||||||||||||||||||
Agriculture loans | — | — | — | — | 14,054 | 14,054 | — | ||||||||||||||||||||||
Consumer | 10 | 13 | 17 | 40 | 4,023 | 4,063 | 17 | ||||||||||||||||||||||
Total | 1,260 | 632 | 231 | 2,123 | 435,749 | 437,872 | 231 | ||||||||||||||||||||||
The following table presents nonaccrual loans by classes of the loan portfolio as of June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
NONACCRUAL LOANS BY LOAN CLASS | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
$ | $ | ||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 888 | 992 | |||||||||||||||||||||||||||
Agriculture mortgages | — | — | |||||||||||||||||||||||||||
Construction | — | — | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
1-4 family residential mortgages | — | — | |||||||||||||||||||||||||||
Home equity loans | — | — | |||||||||||||||||||||||||||
Home equity lines of credit | — | — | |||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 81 | 109 | |||||||||||||||||||||||||||
Tax-free loans | — | — | |||||||||||||||||||||||||||
Agriculture loans | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 969 | 1,101 | |||||||||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, all of the Corporation’s commercial loans on nonaccrual status were also considered impaired. Information with respect to impaired loans for the three and six months ended June 30, 2014 and June 30, 2013, is as follows: | |||||||||||||||||||||||||||||
IMPAIRED LOANS | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||
Average recorded balance of impaired loans | 2,580 | 2,843 | 2,617 | 2,866 | |||||||||||||||||||||||||
Interest income recognized on impaired loans | 27 | 28 | 55 | 56 | |||||||||||||||||||||||||
Interest income on impaired loans would have increased by approximately $10,000 and $22,000 for the three and six months ended June 30, 2014, respectively, compared to $21,000 and $42,000 for the three and six months ended June 30, 2013, had these loans performed in accordance with their original terms. | |||||||||||||||||||||||||||||
During the six months ended June 30, 2014 and 2013, there were no loan modifications made that would cause a loan to be considered a troubled debt restructuring (TDR). A TDR is a loan where management has granted a concession to the borrower from the original terms. A concession is generally granted in order to improve the financial condition of the borrower and improve the likelihood of full collection by the lender. A concession is generally defined as more favorable payment or credit terms granted to a borrower in an effort to improve the likelihood of the lender collecting principal in its entirety. Concessions usually are in the form of interest only for a period of time, or a lower interest rate offered in an effort to enable the borrower to continue to make normally scheduled payments. | |||||||||||||||||||||||||||||
The following tables summarize information in regards to impaired loans by loan portfolio class as of June 30, 2014, December 31, 2013, and June 30, 2013: | |||||||||||||||||||||||||||||
IMPAIRED LOAN ANALYSIS | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
30-Jun-14 | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 888 | 985 | — | 940 | — | ||||||||||||||||||||||||
Agriculture mortgages | 1,569 | 1,569 | — | 1,580 | 55 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 2,457 | 2,554 | — | 2,520 | 55 | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 81 | 81 | — | 97 | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 81 | 81 | — | 97 | — | ||||||||||||||||||||||||
Total with no related allowance | 2,538 | 2,635 | — | 2,617 | 55 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture mortgages | — | — | — | — | — | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | — | — | — | — | — | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | — | — | — | — | — | ||||||||||||||||||||||||
Total with a related allowance | — | — | — | — | — | ||||||||||||||||||||||||
Total by loan class: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 888 | 985 | — | 940 | — | ||||||||||||||||||||||||
Agriculture mortgages | 1,569 | 1,569 | — | 1,580 | 55 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 2,457 | 2,554 | — | 2,520 | 55 | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 81 | 81 | — | 97 | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 81 | 81 | — | 97 | — | ||||||||||||||||||||||||
Total | 2,538 | 2,635 | — | 2,617 | 55 | ||||||||||||||||||||||||
IMPAIRED LOAN ANALYSIS | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
31-Dec-13 | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 992 | 1,088 | — | 1,119 | 1 | ||||||||||||||||||||||||
Agriculture mortgages | 1,592 | 1,592 | — | 1,609 | 112 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 2,584 | 2,680 | — | 2,728 | 113 | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 109 | 109 | — | 99 | |||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 109 | 109 | — | 99 | — | ||||||||||||||||||||||||
Total with no related allowance | 2,693 | 2,789 | — | 2,827 | 113 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture mortgages | — | — | — | — | — | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | — | — | — | — | — | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | — | — | — | — | — | ||||||||||||||||||||||||
Total with a related allowance | — | — | — | — | — | ||||||||||||||||||||||||
Total by loan class: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 992 | 1,088 | — | 1,119 | 1 | ||||||||||||||||||||||||
Agriculture mortgages | 1,592 | 1,592 | — | 1,609 | 112 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 2,584 | 2,680 | — | 2,728 | 113 | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 109 | 109 | — | 99 | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 109 | 109 | — | 99 | — | ||||||||||||||||||||||||
Total | 2,693 | 2,789 | — | 2,827 | 113 | ||||||||||||||||||||||||
IMPAIRED LOAN ANALYSIS | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
30-Jun-13 | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 1,105 | 1,202 | — | 1,164 | — | ||||||||||||||||||||||||
Agriculture mortgages | 1,607 | 1,607 | — | 1,618 | 56 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 2,712 | 2,809 | — | 2,782 | 56 | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 45 | 45 | — | 49 | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 45 | 45 | — | 49 | — | ||||||||||||||||||||||||
Total with no related allowance | 2,757 | 2,854 | — | 2,831 | 56 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 20 | 20 | 2 | 20 | — | ||||||||||||||||||||||||
Agriculture mortgages | — | — | — | — | — | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 20 | 20 | 2 | 20 | — | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 105 | 105 | 11 | 15 | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 105 | 105 | 11 | 15 | — | ||||||||||||||||||||||||
Total with a related allowance | 125 | 125 | 13 | 35 | — | ||||||||||||||||||||||||
Total by loan class: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 1,125 | 1,222 | 2 | 1,184 | — | ||||||||||||||||||||||||
Agriculture mortgages | 1,607 | 1,607 | — | 1,618 | 56 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 2,732 | 2,829 | 2 | 2,802 | 56 | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 150 | 150 | 11 | 64 | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 150 | 150 | 11 | 64 | — | ||||||||||||||||||||||||
Total | 2,882 | 2,979 | 13 | 2,866 | 56 | ||||||||||||||||||||||||
The following table details activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2014: | |||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial | Consumer | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Real Estate | Real Estate | and Industrial | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance - December 31, 2013 | 3,657 | 1,346 | 1,416 | 102 | 698 | 7,219 | |||||||||||||||||||||||
Charge-offs | — | — | — | (15 | ) | — | (15 | ) | |||||||||||||||||||||
Recoveries | 4 | 5 | 43 | — | — | 52 | |||||||||||||||||||||||
Provision | (150 | ) | 51 | (117 | ) | 17 | (1 | ) | (200 | )(1) | |||||||||||||||||||
Balance - March 31, 2014 | 3,511 | 1,402 | 1,342 | 104 | 697 | 7,056 | |||||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Recoveries | 3 | — | 9 | — | — | 12 | |||||||||||||||||||||||
Provision | (106 | ) | 44 | 12 | (24 | ) | (26 | ) | (100 | )(1) | |||||||||||||||||||
Ending Balance - June 30, 2014 | 3,408 | 1,446 | 1,363 | 80 | 671 | 6,968 | |||||||||||||||||||||||
-1 | The Corporation recognized a $200,000 credit provision in the first quarter of 2014 and a $100,000 credit provision in the second quarter of 2014 as a result of lower levels of substandard loans, and continued low levels of total classified loans, impaired loans, non-accrual loans, recoveries in excess of charge-offs, continuing declines in historic loss ratios, and improving qualitative factors. | ||||||||||||||||||||||||||||
During the six months ended June 30, 2014, credit provisions were recorded for the commercial real estate, commercial and industrial, and consumer loan categories while there was provision expense required for the consumer real estate loan category. There have been no commercial loan charge-offs during the past year, which reduced the historical loss rates and ultimately resulted in a lower required reserve amount for the commercial loan categories. Qualitative factors have been shifting, with some increasing and some decreasing, but overall, qualitative factors across the board have been declining. Conversely, factors in the allowance calculation related to consumer real estate were increased in the first half of 2014 as a result of the mortgage initiative and focus on increasing volume in this area. | |||||||||||||||||||||||||||||
The following table details activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2013: | |||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial | Consumer | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Real Estate | Real Estate | and Industrial | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance - December 31, 2012 | 3,575 | 1,510 | 1,640 | 61 | 730 | 7,516 | |||||||||||||||||||||||
Charge-offs | — | (78 | ) | (41 | ) | (6 | ) | — | (125 | ) | |||||||||||||||||||
Recoveries | — | — | 16 | — | — | 16 | |||||||||||||||||||||||
Provision | (355 | ) | 48 | 281 | 7 | (31 | ) | (50 | )(1) | ||||||||||||||||||||
Balance - March 31, 2013 | 3,220 | 1,480 | 1,896 | 62 | 699 | 7,357 | |||||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Recoveries | — | — | 16 | — | — | 16 | |||||||||||||||||||||||
Provision | 8 | (22 | ) | (107 | ) | 19 | 2 | (100 | )(1) | ||||||||||||||||||||
Ending Balance - June 30, 2013 | 3,228 | 1,458 | 1,805 | 81 | 701 | 7,273 | |||||||||||||||||||||||
-1 | The Corporation recognized a $50,000 credit provision in the first quarter of 2013, and a $100,000 credit provision in the second quarter of 2013, for a total year-to-date credit provision of $150,000, as a result of lower levels of non-performing and delinquent loans, minimum charge-offs, and no material changes in gross loans. | ||||||||||||||||||||||||||||
During the six months ended June 30, 2013, a large commercial real estate (CRE) loan was upgraded and was no longer considered substandard, reducing the required provision for this loan type. Conversely, a commercial and industrial (C&I) loan moved from pass to substandard increasing the related required provision. | |||||||||||||||||||||||||||||
The following tables present the balance in the allowance for credit losses and the recorded investment in loans receivable by portfolio segment based on impairment method as of June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
As of June 30, 2014: | Commercial | Consumer | Commercial | Consumer | Unallocated | Total | |||||||||||||||||||||||
Real Estate | Real Estate | and Industrial | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Ending balance: individually evaluated | |||||||||||||||||||||||||||||
for impairment | — | — | — | — | — | — | |||||||||||||||||||||||
Ending balance: collectively evaluated | |||||||||||||||||||||||||||||
for impairment | 3,408 | 1,446 | 1,363 | 80 | 671 | 6,968 | |||||||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance | 233,612 | 157,191 | 53,221 | 3,723 | 447,747 | ||||||||||||||||||||||||
Ending balance: individually evaluated | |||||||||||||||||||||||||||||
for impairment | 2,457 | — | 81 | — | 2,538 | ||||||||||||||||||||||||
Ending balance: collectively evaluated | |||||||||||||||||||||||||||||
for impairment | 231,155 | 157,191 | 53,140 | 3,723 | 445,209 | ||||||||||||||||||||||||
As of December 31, 2013: | Commercial | Consumer | Commercial | Consumer | Unallocated | Total | |||||||||||||||||||||||
Real Estate | Real Estate | and Industrial | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Ending balance: individually evaluated | |||||||||||||||||||||||||||||
for impairment | — | — | — | — | — | — | |||||||||||||||||||||||
Ending balance: collectively evaluated | |||||||||||||||||||||||||||||
for impairment | 3,657 | 1,346 | 1,416 | 102 | 698 | 7,219 | |||||||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance | 221,175 | 159,239 | 53,395 | 4,063 | 437,872 | ||||||||||||||||||||||||
Ending balance: individually evaluated | |||||||||||||||||||||||||||||
for impairment | 2,584 | — | 109 | — | 2,693 | ||||||||||||||||||||||||
Ending balance: collectively evaluated | |||||||||||||||||||||||||||||
for impairment | 218,591 | 159,239 | 53,286 | 4,063 | 435,179 | ||||||||||||||||||||||||
Fair_Value_Presentation
Fair Value Presentation | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Presentation | ' | ||||||||||||||||
4. Fair Value Presentation | |||||||||||||||||
U.S. generally accepted accounting principles establish a hierarchal disclosure framework associated with the level of observable pricing utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: | |||||||||||||||||
Level I: | Quoted prices are available in active markets for identical assets or liabilities as of the reported date. | ||||||||||||||||
Level II: | Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed. | ||||||||||||||||
Level III: | Assets and liabilities that have little to no observable pricing as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. | ||||||||||||||||
The following tables present the assets reported on the consolidated balance sheets at their fair value as of June 30, 2014, and December 31, 2013, by level within the fair value hierarchy. As required by U.S. generally accepted accounting principles, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
Fair Value Measurements: | |||||||||||||||||
ASSETS MEASURED ON A RECURRING BASIS | |||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||
30-Jun-14 | |||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
U.S. government agencies | — | 37,938 | — | 37,938 | |||||||||||||
U.S. agency mortgage-backed securities | — | 56,193 | — | 56,193 | |||||||||||||
U.S. agency collateralized mortgage obligations | — | 58,069 | — | 58,069 | |||||||||||||
Private collateralized mortgage obligations | — | — | — | — | |||||||||||||
Corporate bonds | — | 47,012 | — | 47,012 | |||||||||||||
Obligations of states & political subdivisions | — | 103,259 | — | 103,259 | |||||||||||||
Marketable equity securities | 5,326 | — | — | 5,326 | |||||||||||||
Total securities | 5,326 | 302,471 | — | 307,797 | |||||||||||||
On June 30, 2014, the Corporation held no securities valued using level III inputs. All of the Corporation’s debt instruments were valued using level II inputs, where quoted prices are available and observable, but not necessarily quotes on identical securities traded in active markets on a daily basis. The Corporation’s CRA fund investments and bank stocks are fair valued utilizing level I inputs because the funds have their own quoted prices in an active market. As of June 30, 2014, the CRA fund investments had a $5,000,000 book and fair market value and the bank stock portfolio had a book value of $318,000, and fair market value of $326,000. | |||||||||||||||||
Fair Value Measurements: | |||||||||||||||||
ASSETS MEASURED ON A RECURRING BASIS | |||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
U.S. government agencies | — | 39,667 | — | 39,667 | |||||||||||||
U.S. agency mortgage-backed securities | — | 51,923 | — | 51,923 | |||||||||||||
U.S. agency collateralized mortgage obligations | — | 41,688 | — | 41,688 | |||||||||||||
Private collateralized mortgage obligations | — | 4,041 | — | 4,041 | |||||||||||||
Corporate bonds | — | 56,194 | — | 56,194 | |||||||||||||
Obligations of states & political subdivisions | — | 101,644 | — | 101,644 | |||||||||||||
Marketable equity securities | 5,171 | — | — | 5,171 | |||||||||||||
Total securities | 5,171 | 295,157 | — | 300,328 | |||||||||||||
On December 31, 2013, the Corporation held no securities valued using level III inputs. All of the Corporation’s debt instruments were valued using level II inputs, where quoted prices are available and observable but not necessarily quotes on identical securities traded in active markets on a daily basis. As of December 31, 2013, the Corporation’s CRA fund investments had a book and fair market value of $5,000,000 and the bank stock portfolio had a book value of $151,000 and a market value of $171,000 utilizing level I pricing. | |||||||||||||||||
Financial instruments are considered level III when their values are determined using pricing models, discounted cash flow methodologies, or similar techniques, and at least one significant model assumption or input is unobservable. In addition to these unobservable inputs, the valuation models for level III financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. Level III financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. There were no level III securities as of June 30, 2014 or December 31, 2013. | |||||||||||||||||
The following tables present the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of June 30, 2014 and December 31, 2013, by level within the fair value hierarchy: | |||||||||||||||||
ASSETS MEASURED ON A NONRECURRING BASIS | |||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
30-Jun-14 | |||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Assets: | |||||||||||||||||
Impaired Loans | — | — | 2,538 | 2,538 | |||||||||||||
OREO | — | — | 56 | 56 | |||||||||||||
Total | — | — | 2,594 | 2,594 | |||||||||||||
31-Dec-13 | |||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Assets: | |||||||||||||||||
Impaired Loans | — | — | 2,693 | 2,693 | |||||||||||||
OREO | — | — | 39 | 39 | |||||||||||||
Total | — | — | 2,732 | 2,732 | |||||||||||||
The Corporation had a total of $2,538,000 of impaired loans as of June 30, 2014, and $2,693,000 of impaired loans as of December 31, 2013, with no specific allocation against these loans. The value of impaired loans is generally determined through independent appraisals of the underlying collateral. | |||||||||||||||||
Other real estate owned (OREO) is measured at fair value, less estimated costs to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management. The assets are carried at the lower of carrying amount or fair value, less estimated costs to sell. The Corporation’s OREO balance consisted of one residential property that was classified as OREO as of June 30, 2014, and a different residential property that was classified as OREO as of December 31, 2013, and sold prior to June 30, 2014. Management has estimated the current value of the OREO property held at June 30, 2014, at $56,000 utilizing level III pricing. Income and expenses from operations and changes in valuation allowance are included in the net expenses from OREO. | |||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized level III inputs to determine fair value: | |||||||||||||||||
QUANTITATIVE INFORMATION ABOUT LEVEL III FAIR VALUE MEASUREMENTS | |||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||
Fair Value | Valuation | ||||||||||||||||
Estimate | Techniques | Unobservable | Range | ||||||||||||||
June 30, 2014: | $ | $ | Input | (Weighted Avg) | |||||||||||||
Impaired loans | 2,538 | Appraisal of | Appraisal | 0% to -20% (-20%) | |||||||||||||
collateral (1) | adjustments (2) | ||||||||||||||||
Liquidation | 0% to -10% (-10%) | ||||||||||||||||
expenses (2) | |||||||||||||||||
OREO | 56 | Appraisal of | Liquidation | -1% to -7% (-7%) | |||||||||||||
collateral (1),(3) | expenses (2) | ||||||||||||||||
December 31, 2013: | |||||||||||||||||
Impaired loans | 2,693 | Appraisal of | Appraisal | 0% to -20% (-20%) | |||||||||||||
collateral (1) | adjustments (2) | ||||||||||||||||
Liquidation | 0% to -10% (-10%) | ||||||||||||||||
expenses (2) | |||||||||||||||||
OREO | 39 | Appraisal of | Liquidation | -1% to -7% (-7%) | |||||||||||||
collateral (1),(3) | expenses (2) | ||||||||||||||||
(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III inputs which are not identifiable. | |||||||||||||||||
(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. | |||||||||||||||||
(3) Includes qualitative adjustments by management and estimated liquidation expenses. |
Interim_Disclosures_about_Fair
Interim Disclosures about Fair Value of Financial Instruments | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||||||||||||||
Interim Disclosures about Fair Value of Financial Instruments | ' | ||||||||||||||||||||
5 | Interim Disclosures about Fair Value of Financial Instruments | ||||||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instrument: | |||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||
For these short-term instruments, the carrying amount is a reasonable estimate of fair value. | |||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||
Management utilizes quoted market pricing for the fair value of the Corporation's securities that are available for sale, if available. If a quoted market rate is not available, fair value is estimated using quoted market prices for similar securities. | |||||||||||||||||||||
Loans Held for Sale | |||||||||||||||||||||
Loans held for sale are individual loans for which the Corporation has a firm sales commitment; therefore, the carrying value is a reasonable estimate of the fair value. | |||||||||||||||||||||
Loans | |||||||||||||||||||||
The fair value of fixed and variable rate loans is estimated by discounting back the scheduled future cash flows of the particular loan product, using the market interest rates of comparable loan products in the Corporation’s greater market area, with the same general structure, comparable credit ratings, and for the same remaining maturities. | |||||||||||||||||||||
Regulatory Stock | |||||||||||||||||||||
Regulatory stock is valued at a stable dollar price, which is the price used to purchase or liquidate shares; therefore, the carrying amount is a reasonable estimate of fair value. | |||||||||||||||||||||
Bank Owned Life Insurance | |||||||||||||||||||||
Fair value is equal to the cash surrender value of the life insurance policies. | |||||||||||||||||||||
Accrued Interest Receivable | |||||||||||||||||||||
The carrying amount of accrued interest receivable is a reasonable estimate of fair value. | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
The fair value of non-interest bearing demand deposit accounts and interest bearing demand, savings, and money market deposit accounts is based on the amount payable on demand at the reporting date. The fair value of fixed-maturity time deposits is estimated by discounting back the expected cash flows of the time deposit using market interest rates from the Corporation’s greater market area currently offered for similar time deposits with similar remaining maturities. | |||||||||||||||||||||
Borrowings | |||||||||||||||||||||
The fair value of a term borrowing is estimated by comparing the rate currently offered for the same type of borrowing instrument with a matching remaining term. | |||||||||||||||||||||
Accrued Interest Payable | |||||||||||||||||||||
The carrying amount of accrued interest payable is a reasonable estimate of fair value. | |||||||||||||||||||||
Firm Commitments to Extend Credit, Lines of Credit, and Open Letters of Credit | |||||||||||||||||||||
These financial instruments are generally not subject to sale and estimated fair values are not readily available. The carrying value, represented by the net deferred fee arising from the unrecognized commitment or letter of credit, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment, using fees currently charged to enter into similar agreements with similar credit risk, is not considered material for disclosure purposes. The contractual amounts of unfunded commitments are presented in Note 6. | |||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
The carrying amounts and estimated fair values of the Corporation's financial instruments at June 30, 2014 and December 31, 2013, are summarized as follows: | |||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||
Active Markets | Significant Other | Significant | |||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||
Carrying | Assets | Inputs | Inputs | ||||||||||||||||||
Amount | Fair Value | (Level 1) | (Level II) | (Level III) | |||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and cash equivalents | 45,021 | 45,021 | 45,021 | — | — | ||||||||||||||||
Securities available for sale | 307,797 | 307,797 | 5,326 | 302,471 | — | ||||||||||||||||
Loans held for sale | 108 | 108 | 108 | — | — | ||||||||||||||||
Loans, net of allowance | 441,182 | 435,329 | — | — | 435,329 | ||||||||||||||||
Regulatory stock | 4,034 | 4,034 | 4,034 | — | — | ||||||||||||||||
Bank owned life insurance | 20,239 | 20,239 | 20,239 | — | — | ||||||||||||||||
Accrued interest receivable | 3,766 | 3,766 | 3,766 | — | — | ||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Demand deposits | 183,149 | 183,149 | 183,149 | — | — | ||||||||||||||||
Interest-bearing demand deposits | 9,494 | 9,494 | 9,494 | — | — | ||||||||||||||||
NOW accounts | 79,818 | 79,818 | 79,818 | — | — | ||||||||||||||||
Savings accounts | 129,659 | 129,659 | 129,659 | — | — | ||||||||||||||||
Money market deposit accounts | 64,691 | 64,691 | 64,691 | — | — | ||||||||||||||||
Time deposits | 216,890 | 219,651 | — | — | 219,651 | ||||||||||||||||
Total deposits | 683,701 | 686,462 | 466,811 | — | 219,651 | ||||||||||||||||
Short-term borrowings | 5,410 | 5,410 | 5,410 | — | — | ||||||||||||||||
Long-term debt | 69,150 | 70,430 | — | — | 70,430 | ||||||||||||||||
Accrued interest payable | 685 | 685 | 685 | — | — | ||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||
Active Markets | Significant Other | Significant | |||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||
Carrying | Assets | Inputs | Inputs | ||||||||||||||||||
Amount | Fair Value | (Level 1) | (Level II) | (Level III) | |||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and cash equivalents | 24,577 | 24,577 | 24,577 | — | — | ||||||||||||||||
Securities available for sale | 300,328 | 300,328 | 5,171 | 295,157 | — | ||||||||||||||||
Loans held for sale | 59 | 59 | 59 | — | |||||||||||||||||
Loans, net of allowance | 431,001 | 434,049 | — | — | 434,049 | ||||||||||||||||
Regulatory stock | 3,660 | 3,660 | 3,660 | — | — | ||||||||||||||||
Bank owned life insurance | 19,911 | 19,911 | 19,911 | — | — | ||||||||||||||||
Accrued interest receivable | 3,605 | 3,605 | 3,605 | — | — | ||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Demand deposits | 173,070 | 173,070 | 173,070 | — | — | ||||||||||||||||
Interest-bearing demand deposits | 13,055 | 13,055 | 13,055 | — | — | ||||||||||||||||
NOW accounts | 70,540 | 70,540 | 70,540 | — | — | ||||||||||||||||
Savings accounts | 120,935 | 120,935 | 120,935 | — | — | ||||||||||||||||
Money market deposit accounts | 61,882 | 61,882 | 61,882 | — | — | ||||||||||||||||
Time deposits | 217,144 | 221,172 | — | — | 221,172 | ||||||||||||||||
Total deposits | 656,626 | 660,654 | 439,482 | — | 221,172 | ||||||||||||||||
Short-term borrowings | 3,900 | 3,900 | 3,900 | — | — | ||||||||||||||||
Long-term debt | 65,000 | 66,934 | — | — | 66,934 | ||||||||||||||||
Accrued interest payable | 699 | 699 | 699 | — | — | ||||||||||||||||
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 6 Months Ended | |
Jun. 30, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingent Liabilities | ' | |
6 | Commitments and Contingent Liabilities | |
In order to meet the financing needs of its customers in the normal course of business, the Corporation makes various commitments that are not reflected in the accompanying consolidated financial statements. These commitments include firm commitments to extend credit, unused lines of credit, and open letters of credit. As of June 30, 2014, firm loan commitments were $16.8 million, unused lines of credit were $129.2 million, and open letters of credit were $10.0 million. The total of these commitments was $156.0 million, which represents the Corporation’s exposure to credit loss in the event of nonperformance by its customers with respect to these financial instruments. The actual credit losses that may arise from these commitments are expected to compare favorably with the Corporation’s loan loss experience on its loan portfolio taken as a whole. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for balance sheet financial instruments. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Accumulated Other Comprehensive Income Loss | ' | ||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||
7 | Accumulated Other Comprehensive Income (Loss) | ||||||||||
The activity in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2014 and 2013 is as follows: | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (1) (2) | |||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||
Unrealized | |||||||||||
Gains (Losses) | |||||||||||
on Securities | |||||||||||
Available-for-Sale | |||||||||||
$ | |||||||||||
Balance at December 31, 2013 | (3,940 | ) | |||||||||
Other comprehensive income before reclassifications | 2,610 | ||||||||||
Amount reclassified from accumulated other comprehensive income (loss) | (437 | ) | |||||||||
Period change | 2,173 | ||||||||||
Balance at March 31, 2014 | (1,767 | ) | |||||||||
Other comprehensive income before reclassifications | 1,962 | ||||||||||
Amount reclassified from accumulated other comprehensive income (loss) | (384 | ) | |||||||||
Period change | 1,578 | ||||||||||
Balance at June 30, 2014 | (189 | ) | |||||||||
Balance at December 31, 2012 | 6,663 | ||||||||||
Other comprehensive income (loss) before reclassifications | (712 | ) | |||||||||
Amount reclassified from accumulated other comprehensive income (loss) | (606 | ) | |||||||||
Period change | (1,318 | ) | |||||||||
Balance at March 31, 2013 | 5,345 | ||||||||||
Other comprehensive income (loss) before reclassifications | (6,000 | ) | |||||||||
Amount reclassified into accumulated other comprehensive income (loss) | (428 | ) | |||||||||
Period change | (6,428 | ) | |||||||||
Balance at June 30, 2013 | (1,083 | ) | |||||||||
-1 | All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 34%. | ||||||||||
-2 | Amounts in parentheses indicate debits. | ||||||||||
DETAILS ABOUT ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) COMPONENTS (1) | |||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||
Amount Reclassified from | |||||||||||
Accumulated Other Comprehensive | |||||||||||
Income (Loss) | |||||||||||
For the Three Months | |||||||||||
Ended June 30, | Affected Line Item | ||||||||||
2014 | 2013 | in the Statements of | |||||||||
$ | $ | Income | |||||||||
Securities available-for-sale: | |||||||||||
Net securities gains reclassified into earnings | 582 | 741 | Gains on securities transactions, net | ||||||||
Related income tax expense | (198 | ) | (252 | ) | Provision for federal income taxes | ||||||
Net effect on accumulated other comprehensive | |||||||||||
income for the period | 384 | 489 | |||||||||
Net impairment losses reclassified into earnings | — | (93 | ) | Net impairment losses on investment securities | |||||||
Related income tax expense | — | 32 | Provision for federal income taxes | ||||||||
Net effect on accumulated other comprehensive | |||||||||||
income for the period | — | (61 | ) | ||||||||
Total reclassifications for the period | 384 | 428 | |||||||||
(1) Amounts in parentheses indicate debits. | |||||||||||
DETAILS ABOUT ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) COMPONENTS (1) | |||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||
Amount Reclassified from | |||||||||||
Accumulated Other Comprehensive | |||||||||||
Income (Loss) | |||||||||||
For the Six Months | |||||||||||
Ended June 30, | Affected Line Item | ||||||||||
2014 | 2013 | in the Statements of | |||||||||
$ | $ | Income | |||||||||
Securities available-for-sale: | |||||||||||
Net securities gains reclassified into earnings | 1,267 | 1,679 | Gains on securities transactions, net | ||||||||
Related income tax expense | (431 | ) | (571 | ) | Provision for federal income taxes | ||||||
Net effect on accumulated other comprehensive | |||||||||||
income for the period | 836 | 1,108 | |||||||||
Net impairment losses reclassified into earnings | (22 | ) | (113 | ) | Net impairment losses on investment securities | ||||||
Related income tax expense | 7 | 39 | Provision for federal income taxes | ||||||||
Net effect on accumulated other comprehensive | |||||||||||
income for the period | (15 | ) | (74 | ) | |||||||
Total reclassifications for the period | 821 | 1,034 | |||||||||
(1) Amounts in parentheses indicate debits. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 6 Months Ended | |
Jun. 30, 2014 | ||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' | |
Recently Issued Accounting Standards | ' | |
8 | Recently Issued Accounting Standards | |
In June 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-08, Financial Services – Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements. The amendments in this Update affect the scope, measurement, and disclosure requirements for investment companies under U.S. GAAP. The amendments do all of the following: (1) change the approach to the investment company assessment in Topic 946, clarify the characteristics of an investment company, and provide comprehensive guidance for assessing whether an entity is an investment company; (2) require an investment company to measure noncontrolling ownership interests in other investment companies at fair value rather than using the equity method of accounting; and (3) require the following additional disclosures: (a) the fact that the entity is an investment company and is applying the guidance in Topic 946, (b) information about changes, if any, in an entity’s status as an investment company, and (c) information about financial support provided or contractually required to be provided by an investment company to any of its investees. The amendments in this Update are effective for an entity’s interim and annual reporting periods in fiscal years that begin after December 15, 2013. Earlier application is prohibited. This Update became effective for the Corporation on January 1, 2014, and did not have a significant impact on the Corporation’s financial statements. | ||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This Update applies to all entities that have unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. This update is not expected to have a significant impact on the Corporation’s financial statements. | ||
In January 2014, the FASB issued ASU 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. This Update is not expected to have a significant impact on the Corporation’s financial statements. | ||
In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor 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. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. This Update is not expected to have a significant impact on the Corporation’s financial statements. | ||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of 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. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Corporation is evaluating the effect of adopting this new accounting Update. | ||
In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. This Update is not expected to have a significant impact on the Corporation’s financial statements. | ||
In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments when the Terms of an Award Provide that a Performance Target Could Be Achieved After the Requisite Service Period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. This Update is not expected to have a significant impact on the Corporation’s financial statements. |
Securities_Available_for_Sale_
Securities Available for Sale (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Schedule of amortized cost and fair value of securities | ' | ||||||||||||||||||||||||
The amortized cost and fair value of securities held at June 30, 2014, and December 31, 2013, are as follows: | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
U.S. government agencies | 38,865 | 56 | (983 | ) | 37,938 | ||||||||||||||||||||
U.S. agency mortgage-backed securities | 55,849 | 593 | (249 | ) | 56,193 | ||||||||||||||||||||
U.S. agency collateralized mortgage obligations | 58,697 | 110 | (738 | ) | 58,069 | ||||||||||||||||||||
Corporate bonds | 46,996 | 240 | (224 | ) | 47,012 | ||||||||||||||||||||
Obligations of states and political subdivisions | 102,358 | 2,102 | (1,201 | ) | 103,259 | ||||||||||||||||||||
Total debt securities | 302,765 | 3,101 | (3,395 | ) | 302,471 | ||||||||||||||||||||
Marketable equity securities | 5,318 | 8 | — | 5,326 | |||||||||||||||||||||
Total securities available for sale | 308,083 | 3,109 | (3,395 | ) | 307,797 | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
U.S. government agencies | 41,671 | 148 | (2,152 | ) | 39,667 | ||||||||||||||||||||
U.S. agency mortgage-backed securities | 52,502 | 101 | (680 | ) | 51,923 | ||||||||||||||||||||
U.S. agency collateralized mortgage obligations | 42,465 | 161 | (938 | ) | 41,688 | ||||||||||||||||||||
Private collateralized mortgage obligations | 4,135 | 44 | (138 | ) | 4,041 | ||||||||||||||||||||
Corporate bonds | 56,437 | 430 | (673 | ) | 56,194 | ||||||||||||||||||||
Obligations of states and political subdivisions | 103,936 | 1,057 | (3,349 | ) | 101,644 | ||||||||||||||||||||
Total debt securities | 301,146 | 1,941 | (7,930 | ) | 295,157 | ||||||||||||||||||||
Marketable equity securities | 5,151 | 20 | — | 5,171 | |||||||||||||||||||||
Total securities available for sale | 306,297 | 1,961 | (7,930 | ) | 300,328 | ||||||||||||||||||||
Schedule of contractual maturity of debt securities | ' | ||||||||||||||||||||||||
CONTRACTUAL MATURITY OF DEBT SECURITIES | |||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||
Amortized | |||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
$ | $ | ||||||||||||||||||||||||
Due in one year or less | 29,155 | 29,204 | |||||||||||||||||||||||
Due after one year through five years | 105,716 | 105,395 | |||||||||||||||||||||||
Due after five years through ten years | 120,871 | 119,887 | |||||||||||||||||||||||
Due after ten years | 47,023 | 47,985 | |||||||||||||||||||||||
Total debt securities | 302,765 | 302,471 | |||||||||||||||||||||||
Schedule of proceeds and gains and losses on securities available for sale | ' | ||||||||||||||||||||||||
Proceeds from active sales of debt securities available for sale, along with the associated gross realized gains and gross realized losses, are shown below. Realized gains and losses are computed on the basis of specific identification. | |||||||||||||||||||||||||
PROCEEDS FROM SALES OF DEBT SECURITIES AVAILABLE FOR SALE | |||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||
Proceeds from sales | 28,209 | 14,891 | 69,470 | 35,174 | |||||||||||||||||||||
Gross realized gains | 759 | 752 | 1,733 | 1,702 | |||||||||||||||||||||
Gross realized losses | 195 | 11 | 484 | 23 | |||||||||||||||||||||
Schedule of securities in an unrealized loss position (temporary impairment) | ' | ||||||||||||||||||||||||
Information pertaining to securities with gross unrealized losses at June 30, 2014, and December 31, 2013, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: | |||||||||||||||||||||||||
TEMPORARY IMPAIRMENTS OF SECURITIES | |||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||
Less than 12 months | More than 12 months | Total | |||||||||||||||||||||||
Gross | Gross | Gross | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||
U.S. government agencies | 5,734 | (15 | ) | 19,221 | (968 | ) | 24,955 | (983 | ) | ||||||||||||||||
U.S. agency mortgage-backed securities | 3,309 | (27 | ) | 8,008 | (222 | ) | 11,317 | (249 | ) | ||||||||||||||||
U.S. agency collateralized mortgage obligations | 30,649 | (391 | ) | 11,208 | (347 | ) | 41,857 | (738 | ) | ||||||||||||||||
Corporate bonds | 12,623 | (75 | ) | 7,649 | (149 | ) | 20,272 | (224 | ) | ||||||||||||||||
Obligations of states & political subdivisions | 10,403 | (97 | ) | 34,418 | (1,104 | ) | 44,821 | (1,201 | ) | ||||||||||||||||
Total temporarily impaired securities | 62,718 | (605 | ) | 80,504 | (2,790 | ) | 143,222 | (3,395 | ) | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
U.S. government agencies | 33,043 | (1,735 | ) | 3,603 | (417 | ) | 36,646 | (2,152 | ) | ||||||||||||||||
U.S. agency mortgage-backed securities | 31,810 | (659 | ) | 4,938 | (21 | ) | 36,748 | (680 | ) | ||||||||||||||||
U.S. agency collateralized mortgage obligations | 28,138 | (938 | ) | — | — | 28,138 | (938 | ) | |||||||||||||||||
Private collateralized mortgage obligations | 1,384 | (59 | ) | 1,790 | (79 | ) | 3,174 | (138 | ) | ||||||||||||||||
Corporate bonds | 32,349 | (664 | ) | 2,010 | (9 | ) | 34,359 | (673 | ) | ||||||||||||||||
Obligations of states & political subdivisions | 58,920 | (2,778 | ) | 8,950 | (571 | ) | 67,870 | (3,349 | ) | ||||||||||||||||
Total temporarily impaired securities | 185,644 | (6,833 | ) | 21,291 | (1,097 | ) | 206,935 | (7,930 | ) | ||||||||||||||||
Schedule of security impairment charges | ' | ||||||||||||||||||||||||
SECURITY IMPAIRMENT CHARGES | |||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||||||
Book | Market | Unrealized | Impairment | ||||||||||||||||||||||
Value | Value | Loss | Charge | ||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||
Impaired private collateralized mortgage obligations | — | — | — | (22 | ) | ||||||||||||||||||||
As of June 30, 2013 | |||||||||||||||||||||||||
Book | Market | Unrealized | Impairment | ||||||||||||||||||||||
Value | Value | Loss | Charge | ||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||
Impaired private collateralized mortgage obligations | 4,675 | 4,387 | (288 | ) | (113 | ) | |||||||||||||||||||
Schedule of credit losses recognized in earnings on debt securities | ' | ||||||||||||||||||||||||
The following table provides a cumulative roll forward of credit losses recognized in earnings for debt securities held: | |||||||||||||||||||||||||
CREDIT LOSSES RECOGNIZED IN EARNINGS ON DEBT SECURITIES | |||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||
Beginning balance | 1,170 | 997 | 1,148 | 977 | |||||||||||||||||||||
Credit losses on debt securities for which other-than- | |||||||||||||||||||||||||
temporary impairment has not been previously recognized | — | — | — | — | |||||||||||||||||||||
Additional credit losses on debt securities for which other- | |||||||||||||||||||||||||
than-temporary impairment was previously recognized | — | 93 | 22 | 113 | |||||||||||||||||||||
Sale of debt securities with previously recognized impairment | (1,170 | ) | — | (1,170 | ) | — | |||||||||||||||||||
Ending balance | — | 1,090 | — | 1,090 |
Loans_and_Allowance_for_Loan_L1
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of loan portfolio by category | ' | ||||||||||||||||||||||||||||
The following table presents the Corporation’s loan portfolio by category of loans as of June 30, 2014, and December 31, 2013. | |||||||||||||||||||||||||||||
LOAN PORTFOLIO | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
$ | $ | ||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 95,354 | 97,243 | |||||||||||||||||||||||||||
Agriculture mortgages | 129,751 | 114,533 | |||||||||||||||||||||||||||
Construction | 8,507 | 9,399 | |||||||||||||||||||||||||||
Total commercial real estate | 233,612 | 221,175 | |||||||||||||||||||||||||||
Consumer real estate (a) | |||||||||||||||||||||||||||||
1-4 family residential mortgages | 123,039 | 127,253 | |||||||||||||||||||||||||||
Home equity loans | 9,994 | 10,889 | |||||||||||||||||||||||||||
Home equity lines of credit | 24,158 | 21,097 | |||||||||||||||||||||||||||
Total consumer real estate | 157,191 | 159,239 | |||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 27,891 | 28,719 | |||||||||||||||||||||||||||
Tax-free loans | 12,573 | 10,622 | |||||||||||||||||||||||||||
Agriculture loans | 12,757 | 14,054 | |||||||||||||||||||||||||||
Total commercial and industrial | 53,221 | 53,395 | |||||||||||||||||||||||||||
Consumer | 3,723 | 4,063 | |||||||||||||||||||||||||||
Gross loans prior to deferred fees | 447,747 | 437,872 | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Deferred loan costs, net | (403 | ) | (348 | ) | |||||||||||||||||||||||||
Allowance for loan losses | 6,968 | 7,219 | |||||||||||||||||||||||||||
Total net loans | 441,182 | 431,001 | |||||||||||||||||||||||||||
(a) | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $8,138,000 and $4,866,000 as of June 30, 2014, and December 31, 2013, respectively. | ||||||||||||||||||||||||||||
Schedule of commercial and consumer credit exposure | ' | ||||||||||||||||||||||||||||
COMMERCIAL CREDIT EXPOSURE | |||||||||||||||||||||||||||||
CREDIT RISK PROFILE BY INTERNALLY ASSIGNED GRADE | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
30-Jun-14 | Commercial | Agriculture | Construction | Commercial | Tax-free | Agriculture | Total | ||||||||||||||||||||||
Mortgages | Mortgages | and | Loans | Loans | |||||||||||||||||||||||||
Industrial | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||
Pass | 84,690 | 125,996 | 6,142 | 26,578 | 12,573 | 12,201 | 268,180 | ||||||||||||||||||||||
Special Mention | 4,415 | 1,266 | — | 211 | — | 350 | 6,242 | ||||||||||||||||||||||
Substandard | 6,249 | 2,489 | 2,365 | 1,102 | — | 206 | 12,411 | ||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | ||||||||||||||||||||||
Loss | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 95,354 | 129,751 | 8,507 | 27,891 | 12,573 | 12,757 | 286,833 | ||||||||||||||||||||||
31-Dec-13 | Commercial | Agriculture | Construction | Commercial | Tax-free | Agriculture | Total | ||||||||||||||||||||||
Mortgages | Mortgages | and | Loans | Loans | |||||||||||||||||||||||||
Industrial | |||||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||
Pass | 85,683 | 112,253 | 7,402 | 27,082 | 10,390 | 13,425 | 256,235 | ||||||||||||||||||||||
Special Mention | 4,996 | — | — | 213 | — | 293 | 5,502 | ||||||||||||||||||||||
Substandard | 6,564 | 2,280 | 1,997 | 1,424 | 232 | 336 | 12,833 | ||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | ||||||||||||||||||||||
Loss | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 97,243 | 114,533 | 9,399 | 28,719 | 10,622 | 14,054 | 274,570 | ||||||||||||||||||||||
CONSUMER CREDIT EXPOSURE | |||||||||||||||||||||||||||||
CREDIT RISK PROFILE BY PAYMENT PERFORMANCE | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
30-Jun-14 | 1-4 Family | Home Equity | Home Equity | Consumer | Total | ||||||||||||||||||||||||
Residential | Loans | Lines of | |||||||||||||||||||||||||||
Mortgages | Credit | ||||||||||||||||||||||||||||
Payment performance: | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Performing | 122,757 | 9,994 | 24,158 | 3,723 | 160,632 | ||||||||||||||||||||||||
Non-performing | 282 | — | — | — | 282 | ||||||||||||||||||||||||
Total | 123,039 | 9,994 | 24,158 | 3,723 | 160,914 | ||||||||||||||||||||||||
31-Dec-13 | 1-4 Family | Home Equity | Home Equity | Consumer | Total | ||||||||||||||||||||||||
Residential | Loans | Lines of | |||||||||||||||||||||||||||
Mortgages | Credit | ||||||||||||||||||||||||||||
Payment performance: | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Performing | 127,039 | 10,889 | 21,097 | 4,046 | 163,071 | ||||||||||||||||||||||||
Non-performing | 214 | — | — | 17 | 231 | ||||||||||||||||||||||||
Total | 127,253 | 10,889 | 21,097 | 4,063 | 163,302 | ||||||||||||||||||||||||
Schedule of aging of loans receivable | ' | ||||||||||||||||||||||||||||
The following tables present an age analysis of the Corporation’s past due loans, segregated by loan portfolio class, as of June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
AGING OF LOANS RECEIVABLE | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Greater | Receivable > | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | than 90 | Total Past | Total Loans | 90 Days and | ||||||||||||||||||||||||
30-Jun-14 | Past Due | Past Due | Days | Due | Current | Receivable | Accruing | ||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | — | 197 | — | 197 | 95,157 | 95,354 | — | ||||||||||||||||||||||
Agriculture mortgages | 62 | — | — | 62 | 129,689 | 129,751 | — | ||||||||||||||||||||||
Construction | — | — | — | — | 8,507 | 8,507 | — | ||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
1-4 family residential mortgages | 921 | 122 | 282 | 1,325 | 121,714 | 123,039 | 282 | ||||||||||||||||||||||
Home equity loans | 18 | — | — | 18 | 9,976 | 9,994 | — | ||||||||||||||||||||||
Home equity lines of credit | 13 | — | — | 13 | 24,145 | 24,158 | — | ||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 40 | — | 12 | 52 | 27,839 | 27,891 | — | ||||||||||||||||||||||
Tax-free loans | — | — | — | — | 12,573 | 12,573 | — | ||||||||||||||||||||||
Agriculture loans | — | — | — | — | 12,757 | 12,757 | — | ||||||||||||||||||||||
Consumer | 3 | 5 | — | 8 | 3,715 | 3,723 | — | ||||||||||||||||||||||
Total | 1,057 | 324 | 294 | 1,675 | 446,072 | 447,747 | 282 | ||||||||||||||||||||||
Loans | |||||||||||||||||||||||||||||
Greater | Receivable > | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | than 90 | Total Past | Total Loans | 90 Days and | ||||||||||||||||||||||||
31-Dec-13 | Past Due | Past Due | Days | Due | Current | Receivable | Accruing | ||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | — | 205 | — | 205 | 97,038 | 97,243 | — | ||||||||||||||||||||||
Agriculture mortgages | 69 | — | — | 69 | 114,464 | 114,533 | — | ||||||||||||||||||||||
Construction | — | — | — | — | 9,399 | 9,399 | — | ||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
1-4 family residential mortgages | 1,089 | 401 | 214 | 1,704 | 125,549 | 127,253 | 214 | ||||||||||||||||||||||
Home equity loans | 57 | — | — | 57 | 10,832 | 10,889 | — | ||||||||||||||||||||||
Home equity lines of credit | 15 | 13 | — | 28 | 21,069 | 21,097 | — | ||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 20 | — | — | 20 | 28,699 | 28,719 | — | ||||||||||||||||||||||
Tax-free loans | — | — | — | — | 10,622 | 10,622 | — | ||||||||||||||||||||||
Agriculture loans | — | — | — | — | 14,054 | 14,054 | — | ||||||||||||||||||||||
Consumer | 10 | 13 | 17 | 40 | 4,023 | 4,063 | 17 | ||||||||||||||||||||||
Total | 1,260 | 632 | 231 | 2,123 | 435,749 | 437,872 | 231 | ||||||||||||||||||||||
Schedule of nonaccrual loans by class | ' | ||||||||||||||||||||||||||||
The following table presents nonaccrual loans by classes of the loan portfolio as of June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
NONACCRUAL LOANS BY LOAN CLASS | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
June 30, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
$ | $ | ||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 888 | 992 | |||||||||||||||||||||||||||
Agriculture mortgages | — | — | |||||||||||||||||||||||||||
Construction | — | — | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
1-4 family residential mortgages | — | — | |||||||||||||||||||||||||||
Home equity loans | — | — | |||||||||||||||||||||||||||
Home equity lines of credit | — | — | |||||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 81 | 109 | |||||||||||||||||||||||||||
Tax-free loans | — | — | |||||||||||||||||||||||||||
Agriculture loans | — | — | |||||||||||||||||||||||||||
Consumer | — | — | |||||||||||||||||||||||||||
Total | 969 | 1,101 | |||||||||||||||||||||||||||
Schedule of impaired loans | ' | ||||||||||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, all of the Corporation’s commercial loans on nonaccrual status were also considered impaired. Information with respect to impaired loans for the three and six months ended June 30, 2014 and June 30, 2013, is as follows: | |||||||||||||||||||||||||||||
IMPAIRED LOANS | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||||||||
Average recorded balance of impaired loans | 2,580 | 2,843 | 2,617 | 2,866 | |||||||||||||||||||||||||
Interest income recognized on impaired loans | 27 | 28 | 55 | 56 | |||||||||||||||||||||||||
The following tables summarize information in regards to impaired loans by loan portfolio class as of June 30, 2014, December 31, 2013, and June 30, 2013: | |||||||||||||||||||||||||||||
IMPAIRED LOAN ANALYSIS | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
30-Jun-14 | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 888 | 985 | — | 940 | — | ||||||||||||||||||||||||
Agriculture mortgages | 1,569 | 1,569 | — | 1,580 | 55 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 2,457 | 2,554 | — | 2,520 | 55 | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 81 | 81 | — | 97 | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 81 | 81 | — | 97 | — | ||||||||||||||||||||||||
Total with no related allowance | 2,538 | 2,635 | — | 2,617 | 55 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture mortgages | — | — | — | — | — | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | — | — | — | — | — | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | — | — | — | — | — | ||||||||||||||||||||||||
Total with a related allowance | — | — | — | — | — | ||||||||||||||||||||||||
Total by loan class: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 888 | 985 | — | 940 | — | ||||||||||||||||||||||||
Agriculture mortgages | 1,569 | 1,569 | — | 1,580 | 55 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 2,457 | 2,554 | — | 2,520 | 55 | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 81 | 81 | — | 97 | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 81 | 81 | — | 97 | — | ||||||||||||||||||||||||
Total | 2,538 | 2,635 | — | 2,617 | 55 | ||||||||||||||||||||||||
IMPAIRED LOAN ANALYSIS | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
31-Dec-13 | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 992 | 1,088 | — | 1,119 | 1 | ||||||||||||||||||||||||
Agriculture mortgages | 1,592 | 1,592 | — | 1,609 | 112 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 2,584 | 2,680 | — | 2,728 | 113 | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 109 | 109 | — | 99 | |||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 109 | 109 | — | 99 | — | ||||||||||||||||||||||||
Total with no related allowance | 2,693 | 2,789 | — | 2,827 | 113 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture mortgages | — | — | — | — | — | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | — | — | — | — | — | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | — | — | — | — | — | ||||||||||||||||||||||||
Total with a related allowance | — | — | — | — | — | ||||||||||||||||||||||||
Total by loan class: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 992 | 1,088 | — | 1,119 | 1 | ||||||||||||||||||||||||
Agriculture mortgages | 1,592 | 1,592 | — | 1,609 | 112 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 2,584 | 2,680 | — | 2,728 | 113 | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 109 | 109 | — | 99 | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 109 | 109 | — | 99 | — | ||||||||||||||||||||||||
Total | 2,693 | 2,789 | — | 2,827 | 113 | ||||||||||||||||||||||||
IMPAIRED LOAN ANALYSIS | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
30-Jun-13 | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 1,105 | 1,202 | — | 1,164 | — | ||||||||||||||||||||||||
Agriculture mortgages | 1,607 | 1,607 | — | 1,618 | 56 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 2,712 | 2,809 | — | 2,782 | 56 | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 45 | 45 | — | 49 | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 45 | 45 | — | 49 | — | ||||||||||||||||||||||||
Total with no related allowance | 2,757 | 2,854 | — | 2,831 | 56 | ||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 20 | 20 | 2 | 20 | — | ||||||||||||||||||||||||
Agriculture mortgages | — | — | — | — | — | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 20 | 20 | 2 | 20 | — | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 105 | 105 | 11 | 15 | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 105 | 105 | 11 | 15 | — | ||||||||||||||||||||||||
Total with a related allowance | 125 | 125 | 13 | 35 | — | ||||||||||||||||||||||||
Total by loan class: | |||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Commercial mortgages | 1,125 | 1,222 | 2 | 1,184 | — | ||||||||||||||||||||||||
Agriculture mortgages | 1,607 | 1,607 | — | 1,618 | 56 | ||||||||||||||||||||||||
Construction | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial real estate | 2,732 | 2,829 | 2 | 2,802 | 56 | ||||||||||||||||||||||||
Commercial and industrial | |||||||||||||||||||||||||||||
Commercial and industrial | 150 | 150 | 11 | 64 | — | ||||||||||||||||||||||||
Tax-free loans | — | — | — | — | — | ||||||||||||||||||||||||
Agriculture loans | — | — | — | — | — | ||||||||||||||||||||||||
Total commercial and industrial | 150 | 150 | 11 | 64 | — | ||||||||||||||||||||||||
Total | 2,882 | 2,979 | 13 | 2,866 | 56 | ||||||||||||||||||||||||
Schedule of allowance for credit losses | ' | ||||||||||||||||||||||||||||
The following table details activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2014: | |||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial | Consumer | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Real Estate | Real Estate | and Industrial | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance - December 31, 2013 | 3,657 | 1,346 | 1,416 | 102 | 698 | 7,219 | |||||||||||||||||||||||
Charge-offs | — | — | — | (15 | ) | — | (15 | ) | |||||||||||||||||||||
Recoveries | 4 | 5 | 43 | — | — | 52 | |||||||||||||||||||||||
Provision | (150 | ) | 51 | (117 | ) | 17 | (1 | ) | (200 | )(1) | |||||||||||||||||||
Balance - March 31, 2014 | 3,511 | 1,402 | 1,342 | 104 | 697 | 7,056 | |||||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Recoveries | 3 | — | 9 | — | — | 12 | |||||||||||||||||||||||
Provision | (106 | ) | 44 | 12 | (24 | ) | (26 | ) | (100 | )(1) | |||||||||||||||||||
Ending Balance - June 30, 2014 | 3,408 | 1,446 | 1,363 | 80 | 671 | 6,968 | |||||||||||||||||||||||
-1 | The Corporation recognized a $200,000 credit provision in the first quarter of 2014 and a $100,000 credit provision in the second quarter of 2014 as a result of lower levels of substandard loans, and continued low levels of total classified loans, impaired loans, non-accrual loans, recoveries in excess of charge-offs, continuing declines in historic loss ratios, and improving qualitative factors. | ||||||||||||||||||||||||||||
The following table details activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2013: | |||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial | Consumer | Commercial | Consumer | Unallocated | Total | ||||||||||||||||||||||||
Real Estate | Real Estate | and Industrial | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Beginning balance - December 31, 2012 | 3,575 | 1,510 | 1,640 | 61 | 730 | 7,516 | |||||||||||||||||||||||
Charge-offs | — | (78 | ) | (41 | ) | (6 | ) | — | (125 | ) | |||||||||||||||||||
Recoveries | — | — | 16 | — | — | 16 | |||||||||||||||||||||||
Provision | (355 | ) | 48 | 281 | 7 | (31 | ) | (50 | )(1) | ||||||||||||||||||||
Balance - March 31, 2013 | 3,220 | 1,480 | 1,896 | 62 | 699 | 7,357 | |||||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Recoveries | — | — | 16 | — | — | 16 | |||||||||||||||||||||||
Provision | 8 | (22 | ) | (107 | ) | 19 | 2 | (100 | )(1) | ||||||||||||||||||||
Ending Balance - June 30, 2013 | 3,228 | 1,458 | 1,805 | 81 | 701 | 7,273 | |||||||||||||||||||||||
-1 | The Corporation recognized a $50,000 credit provision in the first quarter of 2013, and a $100,000 credit provision in the second quarter of 2013, for a total year-to-date credit provision of $150,000, as a result of lower levels of non-performing and delinquent loans, minimum charge-offs, and no material changes in gross loans. | ||||||||||||||||||||||||||||
The following tables present the balance in the allowance for credit losses and the recorded investment in loans receivable by portfolio segment based on impairment method as of June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||
ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE | |||||||||||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||||||||||
As of June 30, 2014: | Commercial | Consumer | Commercial | Consumer | Unallocated | Total | |||||||||||||||||||||||
Real Estate | Real Estate | and Industrial | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Ending balance: individually evaluated | |||||||||||||||||||||||||||||
for impairment | — | — | — | — | — | — | |||||||||||||||||||||||
Ending balance: collectively evaluated | |||||||||||||||||||||||||||||
for impairment | 3,408 | 1,446 | 1,363 | 80 | 671 | 6,968 | |||||||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance | 233,612 | 157,191 | 53,221 | 3,723 | 447,747 | ||||||||||||||||||||||||
Ending balance: individually evaluated | |||||||||||||||||||||||||||||
for impairment | 2,457 | — | 81 | — | 2,538 | ||||||||||||||||||||||||
Ending balance: collectively evaluated | |||||||||||||||||||||||||||||
for impairment | 231,155 | 157,191 | 53,140 | 3,723 | 445,209 | ||||||||||||||||||||||||
As of December 31, 2013: | Commercial | Consumer | Commercial | Consumer | Unallocated | Total | |||||||||||||||||||||||
Real Estate | Real Estate | and Industrial | |||||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||||
Ending balance: individually evaluated | |||||||||||||||||||||||||||||
for impairment | — | — | — | — | — | — | |||||||||||||||||||||||
Ending balance: collectively evaluated | |||||||||||||||||||||||||||||
for impairment | 3,657 | 1,346 | 1,416 | 102 | 698 | 7,219 | |||||||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance | 221,175 | 159,239 | 53,395 | 4,063 | 437,872 | ||||||||||||||||||||||||
Ending balance: individually evaluated | |||||||||||||||||||||||||||||
for impairment | 2,584 | — | 109 | — | 2,693 | ||||||||||||||||||||||||
Ending balance: collectively evaluated | |||||||||||||||||||||||||||||
for impairment | 218,591 | 159,239 | 53,286 | 4,063 | 435,179 | ||||||||||||||||||||||||
Fair_Value_Presentation_Tables
Fair Value Presentation (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of assets measured on a recurring basis | ' | ||||||||||||||||
The following tables present the assets reported on the consolidated balance sheets at their fair value as of June 30, 2014, and December 31, 2013, by level within the fair value hierarchy. As required by U.S. generally accepted accounting principles, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
Fair Value Measurements: | |||||||||||||||||
ASSETS MEASURED ON A RECURRING BASIS | |||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||
30-Jun-14 | |||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
U.S. government agencies | — | 37,938 | — | 37,938 | |||||||||||||
U.S. agency mortgage-backed securities | — | 56,193 | — | 56,193 | |||||||||||||
U.S. agency collateralized mortgage obligations | — | 58,069 | — | 58,069 | |||||||||||||
Private collateralized mortgage obligations | — | — | — | — | |||||||||||||
Corporate bonds | — | 47,012 | — | 47,012 | |||||||||||||
Obligations of states & political subdivisions | — | 103,259 | — | 103,259 | |||||||||||||
Marketable equity securities | 5,326 | — | — | 5,326 | |||||||||||||
Total securities | 5,326 | 302,471 | — | 307,797 | |||||||||||||
Fair Value Measurements: | |||||||||||||||||
ASSETS MEASURED ON A RECURRING BASIS | |||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
U.S. government agencies | — | 39,667 | — | 39,667 | |||||||||||||
U.S. agency mortgage-backed securities | — | 51,923 | — | 51,923 | |||||||||||||
U.S. agency collateralized mortgage obligations | — | 41,688 | — | 41,688 | |||||||||||||
Private collateralized mortgage obligations | — | 4,041 | — | 4,041 | |||||||||||||
Corporate bonds | — | 56,194 | — | 56,194 | |||||||||||||
Obligations of states & political subdivisions | — | 101,644 | — | 101,644 | |||||||||||||
Marketable equity securities | 5,171 | — | — | 5,171 | |||||||||||||
Total securities | 5,171 | 295,157 | — | 300,328 | |||||||||||||
Schedule of assets measured on a nonrecurring basis | ' | ||||||||||||||||
The following tables present the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of June 30, 2014 and December 31, 2013, by level within the fair value hierarchy: | |||||||||||||||||
ASSETS MEASURED ON A NONRECURRING BASIS | |||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
30-Jun-14 | |||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Assets: | |||||||||||||||||
Impaired Loans | — | — | 2,538 | 2,538 | |||||||||||||
OREO | — | — | 56 | 56 | |||||||||||||
Total | — | — | 2,594 | 2,594 | |||||||||||||
31-Dec-13 | |||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||
$ | $ | $ | $ | ||||||||||||||
Assets: | |||||||||||||||||
Impaired Loans | — | — | 2,693 | 2,693 | |||||||||||||
OREO | — | — | 39 | 39 | |||||||||||||
Total | — | — | 2,732 | 2,732 | |||||||||||||
Schedule of Level III inputs | ' | ||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized level III inputs to determine fair value: | |||||||||||||||||
QUANTITATIVE INFORMATION ABOUT LEVEL III FAIR VALUE MEASUREMENTS | |||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||
Fair Value | Valuation | ||||||||||||||||
Estimate | Techniques | Unobservable | Range | ||||||||||||||
June 30, 2014: | $ | $ | Input | (Weighted Avg) | |||||||||||||
Impaired loans | 2,538 | Appraisal of | Appraisal | 0% to -20% (-20%) | |||||||||||||
collateral (1) | adjustments (2) | ||||||||||||||||
Liquidation | 0% to -10% (-10%) | ||||||||||||||||
expenses (2) | |||||||||||||||||
OREO | 56 | Appraisal of | Liquidation | -1% to -7% (-7%) | |||||||||||||
collateral (1),(3) | expenses (2) | ||||||||||||||||
December 31, 2013: | |||||||||||||||||
Impaired loans | 2,693 | Appraisal of | Appraisal | 0% to -20% (-20%) | |||||||||||||
collateral (1) | adjustments (2) | ||||||||||||||||
Liquidation | 0% to -10% (-10%) | ||||||||||||||||
expenses (2) | |||||||||||||||||
OREO | 39 | Appraisal of | Liquidation | -1% to -7% (-7%) | |||||||||||||
collateral (1),(3) | expenses (2) | ||||||||||||||||
(1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III inputs which are not identifiable. | |||||||||||||||||
(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. | |||||||||||||||||
(3) Includes qualitative adjustments by management and estimated liquidation expenses. |
Interim_Disclosures_about_Fair1
Interim Disclosures about Fair Value of Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||||||||||||||
Schedule of carrying amount and fair value of financial instruments | ' | ||||||||||||||||||||
The carrying amounts and estimated fair values of the Corporation's financial instruments at June 30, 2014 and December 31, 2013, are summarized as follows: | |||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||
30-Jun-14 | |||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||
Active Markets | Significant Other | Significant | |||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||
Carrying | Assets | Inputs | Inputs | ||||||||||||||||||
Amount | Fair Value | (Level 1) | (Level II) | (Level III) | |||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and cash equivalents | 45,021 | 45,021 | 45,021 | — | — | ||||||||||||||||
Securities available for sale | 307,797 | 307,797 | 5,326 | 302,471 | — | ||||||||||||||||
Loans held for sale | 108 | 108 | 108 | — | — | ||||||||||||||||
Loans, net of allowance | 441,182 | 435,329 | — | — | 435,329 | ||||||||||||||||
Regulatory stock | 4,034 | 4,034 | 4,034 | — | — | ||||||||||||||||
Bank owned life insurance | 20,239 | 20,239 | 20,239 | — | — | ||||||||||||||||
Accrued interest receivable | 3,766 | 3,766 | 3,766 | — | — | ||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Demand deposits | 183,149 | 183,149 | 183,149 | — | — | ||||||||||||||||
Interest-bearing demand deposits | 9,494 | 9,494 | 9,494 | — | — | ||||||||||||||||
NOW accounts | 79,818 | 79,818 | 79,818 | — | — | ||||||||||||||||
Savings accounts | 129,659 | 129,659 | 129,659 | — | — | ||||||||||||||||
Money market deposit accounts | 64,691 | 64,691 | 64,691 | — | — | ||||||||||||||||
Time deposits | 216,890 | 219,651 | — | — | 219,651 | ||||||||||||||||
Total deposits | 683,701 | 686,462 | 466,811 | — | 219,651 | ||||||||||||||||
Short-term borrowings | 5,410 | 5,410 | 5,410 | — | — | ||||||||||||||||
Long-term debt | 69,150 | 70,430 | — | — | 70,430 | ||||||||||||||||
Accrued interest payable | 685 | 685 | 685 | — | — | ||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Quoted Prices in | |||||||||||||||||||||
Active Markets | Significant Other | Significant | |||||||||||||||||||
for Identical | Observable | Unobservable | |||||||||||||||||||
Carrying | Assets | Inputs | Inputs | ||||||||||||||||||
Amount | Fair Value | (Level 1) | (Level II) | (Level III) | |||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and cash equivalents | 24,577 | 24,577 | 24,577 | — | — | ||||||||||||||||
Securities available for sale | 300,328 | 300,328 | 5,171 | 295,157 | — | ||||||||||||||||
Loans held for sale | 59 | 59 | 59 | — | |||||||||||||||||
Loans, net of allowance | 431,001 | 434,049 | — | — | 434,049 | ||||||||||||||||
Regulatory stock | 3,660 | 3,660 | 3,660 | — | — | ||||||||||||||||
Bank owned life insurance | 19,911 | 19,911 | 19,911 | — | — | ||||||||||||||||
Accrued interest receivable | 3,605 | 3,605 | 3,605 | — | — | ||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Demand deposits | 173,070 | 173,070 | 173,070 | — | — | ||||||||||||||||
Interest-bearing demand deposits | 13,055 | 13,055 | 13,055 | — | — | ||||||||||||||||
NOW accounts | 70,540 | 70,540 | 70,540 | — | — | ||||||||||||||||
Savings accounts | 120,935 | 120,935 | 120,935 | — | — | ||||||||||||||||
Money market deposit accounts | 61,882 | 61,882 | 61,882 | — | — | ||||||||||||||||
Time deposits | 217,144 | 221,172 | — | — | 221,172 | ||||||||||||||||
Total deposits | 656,626 | 660,654 | 439,482 | — | 221,172 | ||||||||||||||||
Short-term borrowings | 3,900 | 3,900 | 3,900 | — | — | ||||||||||||||||
Long-term debt | 65,000 | 66,934 | — | — | 66,934 | ||||||||||||||||
Accrued interest payable | 699 | 699 | 699 | — | — |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Accumulated Other Comprehensive Income Loss | ' | ||||||||||
Schedule of accumulated other comprehensive income (loss) | ' | ||||||||||
The activity in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2014 and 2013 is as follows: | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (1) (2) | |||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||
Unrealized | |||||||||||
Gains (Losses) | |||||||||||
on Securities | |||||||||||
Available-for-Sale | |||||||||||
$ | |||||||||||
Balance at December 31, 2013 | (3,940 | ) | |||||||||
Other comprehensive income before reclassifications | 2,610 | ||||||||||
Amount reclassified from accumulated other comprehensive income (loss) | (437 | ) | |||||||||
Period change | 2,173 | ||||||||||
Balance at March 31, 2014 | (1,767 | ) | |||||||||
Other comprehensive income before reclassifications | 1,962 | ||||||||||
Amount reclassified from accumulated other comprehensive income (loss) | (384 | ) | |||||||||
Period change | 1,578 | ||||||||||
Balance at June 30, 2014 | (189 | ) | |||||||||
Balance at December 31, 2012 | 6,663 | ||||||||||
Other comprehensive income (loss) before reclassifications | (712 | ) | |||||||||
Amount reclassified from accumulated other comprehensive income (loss) | (606 | ) | |||||||||
Period change | (1,318 | ) | |||||||||
Balance at March 31, 2013 | 5,345 | ||||||||||
Other comprehensive income (loss) before reclassifications | (6,000 | ) | |||||||||
Amount reclassified into accumulated other comprehensive income (loss) | (428 | ) | |||||||||
Period change | (6,428 | ) | |||||||||
Balance at June 30, 2013 | (1,083 | ) | |||||||||
-1 | All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 34%. | ||||||||||
-2 | Amounts in parentheses indicate debits. | ||||||||||
DETAILS ABOUT ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) COMPONENTS (1) | |||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||
Amount Reclassified from | |||||||||||
Accumulated Other Comprehensive | |||||||||||
Income (Loss) | |||||||||||
For the Three Months | |||||||||||
Ended June 30, | Affected Line Item | ||||||||||
2014 | 2013 | in the Statements of | |||||||||
$ | $ | Income | |||||||||
Securities available-for-sale: | |||||||||||
Net securities gains reclassified into earnings | 582 | 741 | Gains on securities transactions, net | ||||||||
Related income tax expense | (198 | ) | (252 | ) | Provision for federal income taxes | ||||||
Net effect on accumulated other comprehensive | |||||||||||
income for the period | 384 | 489 | |||||||||
Net impairment losses reclassified into earnings | — | (93 | ) | Net impairment losses on investment securities | |||||||
Related income tax expense | — | 32 | Provision for federal income taxes | ||||||||
Net effect on accumulated other comprehensive | |||||||||||
income for the period | — | (61 | ) | ||||||||
Total reclassifications for the period | 384 | 428 | |||||||||
(1) Amounts in parentheses indicate debits. | |||||||||||
DETAILS ABOUT ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) COMPONENTS (1) | |||||||||||
(DOLLARS IN THOUSANDS) | |||||||||||
Amount Reclassified from | |||||||||||
Accumulated Other Comprehensive | |||||||||||
Income (Loss) | |||||||||||
For the Six Months | |||||||||||
Ended June 30, | Affected Line Item | ||||||||||
2014 | 2013 | in the Statements of | |||||||||
$ | $ | Income | |||||||||
Securities available-for-sale: | |||||||||||
Net securities gains reclassified into earnings | 1,267 | 1,679 | Gains on securities transactions, net | ||||||||
Related income tax expense | (431 | ) | (571 | ) | Provision for federal income taxes | ||||||
Net effect on accumulated other comprehensive | |||||||||||
income for the period | 836 | 1,108 | |||||||||
Net impairment losses reclassified into earnings | (22 | ) | (113 | ) | Net impairment losses on investment securities | ||||||
Related income tax expense | 7 | 39 | Provision for federal income taxes | ||||||||
Net effect on accumulated other comprehensive | |||||||||||
income for the period | (15 | ) | (74 | ) | |||||||
Total reclassifications for the period | 821 | 1,034 | |||||||||
(1) Amounts in parentheses indicate debits. |
Securities_Available_for_Sale_1
Securities Available for Sale (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
N | Private collateralized mortgage obligations [Member] | Private collateralized mortgage obligations [Member] | Private collateralized mortgage obligations [Member] | Private collateralized mortgage obligations [Member] | Private collateralized mortgage obligations [Member] | ||||
N | N | N | |||||||
Available for sale debt securities pledged or restricted for public funds, par value | ' | $89,203 | ' | $86,392 | ' | ' | ' | ' | ' |
Available for sale debt securities pledged or restricted for public funds, fair value | ' | 92,591 | ' | 86,993 | ' | ' | ' | ' | ' |
Number of new securities considered other-than-temporarily impaired | ' | ' | ' | ' | ' | 2 | ' | ' | ' |
Number of OTTI securities sold in the period | ' | ' | ' | ' | 3 | ' | ' | ' | ' |
Number of securities considered temporarily impaired | ' | 119 | ' | ' | ' | ' | ' | ' | ' |
Number of securities considered other-than-temporarily impaired | ' | ' | ' | ' | ' | 1 | ' | 3 | ' |
Net impairment losses on investment securities | -93 | -22 | -113 | ' | ' | -22 | -22 | -113 | ' |
Gross Unrealized Losses | ' | ($3,395) | ' | ($7,930) | ' | ' | ' | ($288) | ($138) |
Securities_Available_for_Sale_2
Securities Available for Sale (Details) (USD $) | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
U.S. government agencies [Member] | U.S. government agencies [Member] | U.S. agency mortgage-backed securities [Member] | U.S. agency mortgage-backed securities [Member] | U.S. agency collateralized mortgage obligations [Member] | U.S. agency collateralized mortgage obligations [Member] | Private collateralized mortgage obligations [Member] | Private collateralized mortgage obligations [Member] | Corporate bonds [Member] | Corporate bonds [Member] | Obligations of states and political subdivisions [Member] | Obligations of states and political subdivisions [Member] | Total debt securities [Member] | Total debt securities [Member] | Marketable equity securities [Member] | Marketable equity securities [Member] | ||||
Securities Available For Sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross Amortized Cost | $308,083 | $306,297 | ' | $38,865 | $41,671 | $55,849 | $52,502 | $58,697 | $42,465 | ' | $4,135 | $46,996 | $56,437 | $102,358 | $103,936 | $302,765 | $301,146 | $5,318 | $5,151 |
Gross Unrealized Gains | 3,109 | 1,961 | ' | 56 | 148 | 593 | 101 | 110 | 161 | ' | 44 | 240 | 430 | 2,102 | 1,057 | 3,101 | 1,941 | 8 | 20 |
Gross Unrealized Losses | -3,395 | -7,930 | ' | -983 | -2,152 | -249 | -680 | -738 | -938 | -288 | -138 | -224 | -673 | -1,201 | -3,349 | -3,395 | -7,930 | ' | ' |
Securities available for sale (at fair value) | $307,797 | $300,328 | $305,442 | $37,938 | $39,667 | $56,193 | $51,923 | $58,069 | $41,688 | ' | $4,041 | $47,012 | $56,194 | $103,259 | $101,644 | $302,471 | $295,157 | $5,326 | $5,171 |
Securities_Available_for_Sale_3
Securities Available for Sale (Details 1) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Contractual maturity of debt securities, Amortized Cost | ' |
Due in one year or less | $29,155 |
Due after one year through five years | 105,716 |
Due after five years through ten years | 120,871 |
Due after ten years | 47,023 |
Total debt securities | 302,765 |
Contractual maturity of debt securities, Fair Value | ' |
Due in one year or less | 29,204 |
Due after one year through five years | 105,395 |
Due after five years through ten years | 119,887 |
Due after ten years | 47,985 |
Securities available for sale | $302,471 |
Securities_Available_for_Sale_4
Securities Available for Sale (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Proceeds from sales of securities available for sale | ' | ' | ' | ' |
Proceeds from sales | $28,209 | $14,891 | $69,470 | $35,174 |
Gross realized gains | 759 | 752 | 1,733 | 1,702 |
Gross realized losses | $195 | $11 | $484 | $23 |
Securities_Available_for_Sale_5
Securities Available for Sale (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Gains and losses on securities available for sale | ' | ' | ' | ' |
Gross realized gains | $759 | $752 | $1,733 | $1,702 |
Gross realized losses | 195 | 11 | 484 | 23 |
Impairment on securities | ' | 93 | 22 | 113 |
Total gross realized losses | 195 | 104 | 506 | 136 |
Net gains on securities | $564 | $648 | $1,227 | $1,566 |
Securities_Available_for_Sale_6
Securities Available for Sale (Details 4) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Securities in a continuous loss position | ' | ' |
Fair Value Less Than 12 Months | $62,718 | $185,644 |
Gross Unrealized Loss Less Than 12 Months | -605 | -6,833 |
Fair Value More Than 12 Months | 80,504 | 21,291 |
Gross Unrealized Loss More Than 12 Months | -2,790 | -1,097 |
Total Fair Value | 143,222 | 206,935 |
Total Gross Unrealized Losses | -3,395 | -7,930 |
U.S. government agencies [Member] | ' | ' |
Securities in a continuous loss position | ' | ' |
Fair Value Less Than 12 Months | 5,734 | 33,043 |
Gross Unrealized Loss Less Than 12 Months | -15 | -1,735 |
Fair Value More Than 12 Months | 19,221 | 3,603 |
Gross Unrealized Loss More Than 12 Months | -968 | -417 |
Total Fair Value | 24,955 | 36,646 |
Total Gross Unrealized Losses | -983 | -2,152 |
U.S. agency mortgage-backed securities [Member] | ' | ' |
Securities in a continuous loss position | ' | ' |
Fair Value Less Than 12 Months | 3,309 | 31,810 |
Gross Unrealized Loss Less Than 12 Months | -27 | -659 |
Fair Value More Than 12 Months | 8,008 | 4,938 |
Gross Unrealized Loss More Than 12 Months | -222 | -21 |
Total Fair Value | 11,317 | 36,748 |
Total Gross Unrealized Losses | -249 | -680 |
U.S. agency collateralized mortgage obligations [Member] | ' | ' |
Securities in a continuous loss position | ' | ' |
Fair Value Less Than 12 Months | 30,649 | 28,138 |
Gross Unrealized Loss Less Than 12 Months | -391 | -938 |
Fair Value More Than 12 Months | 11,208 | ' |
Gross Unrealized Loss More Than 12 Months | -347 | ' |
Total Fair Value | 41,857 | 28,138 |
Total Gross Unrealized Losses | -738 | -938 |
Corporate bonds [Member] | ' | ' |
Securities in a continuous loss position | ' | ' |
Fair Value Less Than 12 Months | 12,623 | 32,349 |
Gross Unrealized Loss Less Than 12 Months | -75 | -664 |
Fair Value More Than 12 Months | 7,649 | 2,010 |
Gross Unrealized Loss More Than 12 Months | -149 | -9 |
Total Fair Value | 20,272 | 34,359 |
Total Gross Unrealized Losses | -224 | -673 |
Obligations of states and political subdivisions [Member] | ' | ' |
Securities in a continuous loss position | ' | ' |
Fair Value Less Than 12 Months | 10,403 | 58,920 |
Gross Unrealized Loss Less Than 12 Months | -97 | -2,778 |
Fair Value More Than 12 Months | 34,418 | 8,950 |
Gross Unrealized Loss More Than 12 Months | -1,104 | -571 |
Total Fair Value | 44,821 | 67,870 |
Total Gross Unrealized Losses | -1,201 | -3,349 |
Private collateralized mortgage obligations [Member] | ' | ' |
Securities in a continuous loss position | ' | ' |
Fair Value Less Than 12 Months | ' | 1,384 |
Gross Unrealized Loss Less Than 12 Months | ' | -59 |
Fair Value More Than 12 Months | ' | 1,790 |
Gross Unrealized Loss More Than 12 Months | ' | -79 |
Total Fair Value | ' | 3,174 |
Total Gross Unrealized Losses | ' | ($138) |
Securities_Available_for_Sale_7
Securities Available for Sale (Details 5) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Private collateralized mortgage obligations [Member] | Private collateralized mortgage obligations [Member] | Private collateralized mortgage obligations [Member] | Private collateralized mortgage obligations [Member] | |||||
Security Impairment Charges | ' | ' | ' | ' | ' | ' | ' | ' |
Book Value | ' | ' | ' | ' | ' | ' | $4,675 | ' |
Market value | ' | ' | ' | ' | ' | ' | 4,387 | ' |
Unrealized Loss | ' | -3,395 | ' | -7,930 | ' | ' | -288 | -138 |
Impairment on securities | ($93) | ($22) | ($113) | ' | ($22) | ($22) | ($113) | ' |
Securities_Available_for_Sale_8
Securities Available for Sale (Details 6) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Credit losses recognized in earnings for debt securities held and not intended to be sold | ' | ' | ' | ' |
Impairment losses balance, beginning | $1,170 | $997 | $1,148 | $977 |
Additional credit losses on debt securities for which other-than-temporary impairment was previously recognized | ' | 93 | 22 | 113 |
Sale of debt securities with previously recognized impairment | -1,170 | ' | -1,170 | ' |
Impairment losses balance, ending | ' | $1,090 | ' | $1,090 |
Loans_and_Allowance_for_Loan_L2
Loans and Allowance for Loan Losses (Details Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Loans Serviced for Fannie Mae [Member] | Loans Serviced for Fannie Mae [Member] | |||||||
Real estate loans serviced for others, off-balance sheet assets | ' | ' | ' | ' | ' | ' | $8,138 | $4,866 |
Foregone interest income for impaired loans | 10 | ' | 21 | ' | 22 | 42 | ' | ' |
Provision (credit) for loan losses | ($100) | ($200) | ($100) | ($50) | ($300) | ($150) | ' | ' |
Loans_and_Allowance_for_Loan_L3
Loans and Allowance for Loan Losses (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||||||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | $447,747 | ' | $437,872 | ' | ' | ' | ||
Deferred loan costs, net | -403 | ' | -348 | ' | ' | ' | ||
Allowance for loan losses | 6,968 | 7,056 | 7,219 | 7,273 | 7,357 | 7,516 | ||
Net loans | 441,182 | ' | 431,001 | 411,272 | ' | ' | ||
Commercial Real Estate Commercial Mortgages [Member] | ' | ' | ' | ' | ' | ' | ||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | 95,354 | ' | 97,243 | ' | ' | ' | ||
Commercial Real Estate Agriculture Mortgages [Member] | ' | ' | ' | ' | ' | ' | ||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | 129,751 | ' | 114,533 | ' | ' | ' | ||
Commercial Real Estate Construction [Member] | ' | ' | ' | ' | ' | ' | ||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | 8,507 | ' | 9,399 | ' | ' | ' | ||
Total Commercial Real Estate [Member] | ' | ' | ' | ' | ' | ' | ||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | 233,612 | ' | 221,175 | ' | ' | ' | ||
Allowance for loan losses | 3,408 | 3,511 | 3,657 | 3,228 | 3,220 | 3,575 | ||
Consumer 1-4 family residential mortgages [Member] | ' | ' | ' | ' | ' | ' | ||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | 123,039 | [1] | ' | 127,253 | [1] | ' | ' | ' |
Consumer Home Equity Loans [Member] | ' | ' | ' | ' | ' | ' | ||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | 9,994 | [1] | ' | 10,889 | [1] | ' | ' | ' |
Consumer Home Equity Lines of Credit [Member] | ' | ' | ' | ' | ' | ' | ||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | 24,158 | [1] | ' | 21,097 | [1] | ' | ' | ' |
Total Consumer Real Estate [Member] | ' | ' | ' | ' | ' | ' | ||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | 157,191 | [1] | ' | 159,239 | [1] | ' | ' | ' |
Allowance for loan losses | 1,446 | 1,402 | 1,346 | 1,458 | 1,480 | 1,510 | ||
Commercial and Industrial [Member] | ' | ' | ' | ' | ' | ' | ||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | 27,891 | ' | 28,719 | ' | ' | ' | ||
Commercial and Industrial Tax Free Loans [Member] | ' | ' | ' | ' | ' | ' | ||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | 12,573 | ' | 10,622 | ' | ' | ' | ||
Commercial and Industrial Agriculture Loans [Member] | ' | ' | ' | ' | ' | ' | ||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | 12,757 | ' | 14,054 | ' | ' | ' | ||
Total Commercial and Industrial [Member] | ' | ' | ' | ' | ' | ' | ||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | 53,221 | ' | 53,395 | ' | ' | ' | ||
Allowance for loan losses | 1,363 | 1,342 | 1,416 | 1,805 | 1,896 | 1,640 | ||
Consumer [Member] | ' | ' | ' | ' | ' | ' | ||
Loan Portfolio | ' | ' | ' | ' | ' | ' | ||
Loans Receivable, gross | 3,723 | ' | 4,063 | ' | ' | ' | ||
Allowance for loan losses | $80 | $104 | $102 | $81 | $62 | $61 | ||
[1] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $8,138,000 and $4,866,000 asof June 30, 2014 and December 31, 2013, respectively. |
Loans_and_Allowance_for_Loan_L4
Loans and Allowance for Loan Losses (Details 1) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commercial Risk Rated Loans | $286,833 | $274,570 |
Pass [Member] | ' | ' |
Commercial Risk Rated Loans | 268,180 | 256,235 |
Special Mention [Member] | ' | ' |
Commercial Risk Rated Loans | 6,242 | 5,502 |
Substandard [Member] | ' | ' |
Commercial Risk Rated Loans | 12,411 | 12,833 |
Commercial Real Estate Commercial Mortgages [Member] | ' | ' |
Commercial Risk Rated Loans | 95,354 | 97,243 |
Commercial Real Estate Commercial Mortgages [Member] | Pass [Member] | ' | ' |
Commercial Risk Rated Loans | 84,690 | 85,683 |
Commercial Real Estate Commercial Mortgages [Member] | Special Mention [Member] | ' | ' |
Commercial Risk Rated Loans | 4,415 | 4,996 |
Commercial Real Estate Commercial Mortgages [Member] | Substandard [Member] | ' | ' |
Commercial Risk Rated Loans | 6,249 | 6,564 |
Commercial Real Estate Agriculture Mortgages [Member] | ' | ' |
Commercial Risk Rated Loans | 129,751 | 114,533 |
Commercial Real Estate Agriculture Mortgages [Member] | Pass [Member] | ' | ' |
Commercial Risk Rated Loans | 125,996 | 112,253 |
Commercial Real Estate Agriculture Mortgages [Member] | Special Mention [Member] | ' | ' |
Commercial Risk Rated Loans | 1,266 | ' |
Commercial Real Estate Agriculture Mortgages [Member] | Substandard [Member] | ' | ' |
Commercial Risk Rated Loans | 2,489 | 2,280 |
Commercial Real Estate Construction [Member] | ' | ' |
Commercial Risk Rated Loans | 8,507 | 9,399 |
Commercial Real Estate Construction [Member] | Pass [Member] | ' | ' |
Commercial Risk Rated Loans | 6,142 | 7,402 |
Commercial Real Estate Construction [Member] | Substandard [Member] | ' | ' |
Commercial Risk Rated Loans | 2,365 | 1,997 |
Commercial and Industrial [Member] | ' | ' |
Commercial Risk Rated Loans | 27,891 | 28,719 |
Commercial and Industrial [Member] | Pass [Member] | ' | ' |
Commercial Risk Rated Loans | 26,578 | 27,082 |
Commercial and Industrial [Member] | Special Mention [Member] | ' | ' |
Commercial Risk Rated Loans | 211 | 213 |
Commercial and Industrial [Member] | Substandard [Member] | ' | ' |
Commercial Risk Rated Loans | 1,102 | 1,424 |
Commercial and Industrial Tax Free Loans [Member] | ' | ' |
Commercial Risk Rated Loans | 12,573 | 10,622 |
Commercial and Industrial Tax Free Loans [Member] | Pass [Member] | ' | ' |
Commercial Risk Rated Loans | 12,573 | 10,390 |
Commercial and Industrial Tax Free Loans [Member] | Substandard [Member] | ' | ' |
Commercial Risk Rated Loans | ' | 232 |
Commercial and Industrial Agriculture Loans [Member] | ' | ' |
Commercial Risk Rated Loans | 12,757 | 14,054 |
Commercial and Industrial Agriculture Loans [Member] | Pass [Member] | ' | ' |
Commercial Risk Rated Loans | 12,201 | 13,425 |
Commercial and Industrial Agriculture Loans [Member] | Special Mention [Member] | ' | ' |
Commercial Risk Rated Loans | 350 | 293 |
Commercial and Industrial Agriculture Loans [Member] | Substandard [Member] | ' | ' |
Commercial Risk Rated Loans | $206 | $336 |
Loans_and_Allowance_for_Loan_L5
Loans and Allowance for Loan Losses (Details 2) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Consumer Risk Rated Loans | $160,914 | $163,302 |
Performing [Member] | ' | ' |
Consumer Risk Rated Loans | 160,632 | 163,071 |
Nonperforming [Member] | ' | ' |
Consumer Risk Rated Loans | 282 | 231 |
Consumer 1-4 family residential mortgages [Member] | ' | ' |
Consumer Risk Rated Loans | 123,039 | 127,253 |
Consumer 1-4 family residential mortgages [Member] | Performing [Member] | ' | ' |
Consumer Risk Rated Loans | 122,757 | 127,039 |
Consumer 1-4 family residential mortgages [Member] | Nonperforming [Member] | ' | ' |
Consumer Risk Rated Loans | 282 | 214 |
Consumer Home Equity Loans [Member] | ' | ' |
Consumer Risk Rated Loans | 9,994 | 10,889 |
Consumer Home Equity Loans [Member] | Performing [Member] | ' | ' |
Consumer Risk Rated Loans | 9,994 | 10,889 |
Consumer Home Equity Lines of Credit [Member] | ' | ' |
Consumer Risk Rated Loans | 24,158 | 21,097 |
Consumer Home Equity Lines of Credit [Member] | Performing [Member] | ' | ' |
Consumer Risk Rated Loans | 24,158 | 21,097 |
Consumer [Member] | ' | ' |
Consumer Risk Rated Loans | 3,723 | 4,063 |
Consumer [Member] | Performing [Member] | ' | ' |
Consumer Risk Rated Loans | 3,723 | 4,046 |
Consumer [Member] | Nonperforming [Member] | ' | ' |
Consumer Risk Rated Loans | ' | $17 |
Loans_and_Allowance_for_Loan_L6
Loans and Allowance for Loan Losses (Details 3) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Aging analysis of past due loans | ' | ' | ||
30-59 Days Past Due | $1,057 | $1,260 | ||
60-89 Days Past Due | 324 | 632 | ||
Greater Than 90 Days | 294 | 231 | ||
Total Past Due | 1,675 | 2,123 | ||
Current | 446,072 | 435,749 | ||
Total Loans Receivable | 447,747 | 437,872 | ||
Total Loans >90 Days & Accruing | 282 | 231 | ||
Commercial Real Estate Commercial Mortgages [Member] | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
60-89 Days Past Due | 197 | 205 | ||
Total Past Due | 197 | 205 | ||
Current | 95,157 | 97,038 | ||
Total Loans Receivable | 95,354 | 97,243 | ||
Commercial Real Estate Agriculture Mortgages [Member] | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
30-59 Days Past Due | 62 | 69 | ||
Total Past Due | 62 | 69 | ||
Current | 129,689 | 114,464 | ||
Total Loans Receivable | 129,751 | 114,533 | ||
Commercial Real Estate Construction [Member] | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
Current | 8,507 | 9,399 | ||
Total Loans Receivable | 8,507 | 9,399 | ||
Consumer 1-4 family residential mortgages [Member] | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
30-59 Days Past Due | 921 | 1,089 | ||
60-89 Days Past Due | 122 | 401 | ||
Greater Than 90 Days | 282 | 214 | ||
Total Past Due | 1,325 | 1,704 | ||
Current | 121,714 | 125,549 | ||
Total Loans Receivable | 123,039 | [1] | 127,253 | [1] |
Total Loans >90 Days & Accruing | 282 | 214 | ||
Consumer Home Equity Loans [Member] | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
30-59 Days Past Due | 18 | 57 | ||
Total Past Due | 18 | 57 | ||
Current | 9,976 | 10,832 | ||
Total Loans Receivable | 9,994 | [1] | 10,889 | [1] |
Consumer Home Equity Lines of Credit [Member] | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
30-59 Days Past Due | 13 | 15 | ||
60-89 Days Past Due | ' | 13 | ||
Total Past Due | 13 | 28 | ||
Current | 24,145 | 21,069 | ||
Total Loans Receivable | 24,158 | [1] | 21,097 | [1] |
Commercial and Industrial [Member] | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
30-59 Days Past Due | 40 | 20 | ||
Greater Than 90 Days | 12 | ' | ||
Total Past Due | 52 | 20 | ||
Current | 27,839 | 28,699 | ||
Total Loans Receivable | 27,891 | 28,719 | ||
Commercial and Industrial Tax Free Loans [Member] | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
Current | 12,573 | 10,622 | ||
Total Loans Receivable | 12,573 | 10,622 | ||
Commercial and Industrial Agriculture Loans [Member] | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
Current | 12,757 | 14,054 | ||
Total Loans Receivable | 12,757 | 14,054 | ||
Consumer [Member] | ' | ' | ||
Aging analysis of past due loans | ' | ' | ||
30-59 Days Past Due | 3 | 10 | ||
60-89 Days Past Due | 5 | 13 | ||
Greater Than 90 Days | ' | 17 | ||
Total Past Due | 8 | 40 | ||
Current | 3,715 | 4,023 | ||
Total Loans Receivable | 3,723 | 4,063 | ||
Total Loans >90 Days & Accruing | ' | $17 | ||
[1] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $8,138,000 and $4,866,000 asof June 30, 2014 and December 31, 2013, respectively. |
Loans_and_Allowance_for_Loan_L7
Loans and Allowance for Loan Losses (Details 4) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Non-accrual Loans | $969 | $1,101 |
Commercial Real Estate Commercial Mortgages [Member] | ' | ' |
Non-accrual Loans | 888 | 992 |
Commercial and Industrial [Member] | ' | ' |
Non-accrual Loans | $81 | $109 |
Loans_and_Allowance_for_Loan_L8
Loans and Allowance for Loan Losses (Details 5) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Total impaired loans | ' | ' | ' | ' | ' |
Average Recorded Investment | $2,580 | $2,843 | $2,617 | $2,866 | $2,827 |
Interest Income Recognized | $27 | $28 | $55 | $56 | $113 |
Loans_and_Allowance_for_Loan_L9
Loans and Allowance for Loan Losses (Details 6) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Loans with no related allowance recorded: | ' | ' | ' | ' | ' |
Recorded Investment | $2,538 | $2,757 | $2,538 | $2,757 | $2,693 |
Unpaid Principal Balance | 2,635 | 2,854 | 2,635 | 2,854 | 2,789 |
Average Recorded Investment | ' | ' | 2,617 | 2,831 | 2,827 |
Interest Income Recognized | ' | ' | 55 | 56 | 113 |
Loans with an allowance recorded: | ' | ' | ' | ' | ' |
Recorded Investment | ' | 125 | ' | 125 | ' |
Unpaid Principal Balance | ' | 125 | ' | 125 | ' |
Related Allowance | ' | 13 | ' | 13 | ' |
Average Recorded Investment | ' | ' | ' | 35 | ' |
Total impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | 2,538 | 2,882 | 2,538 | 2,882 | 2,693 |
Unpaid Principal Balance | 2,635 | 2,979 | 2,635 | 2,979 | 2,789 |
Average Recorded Investment | 2,580 | 2,843 | 2,617 | 2,866 | 2,827 |
Interest Income Recognized | 27 | 28 | 55 | 56 | 113 |
Commercial Real Estate Commercial Mortgages [Member] | ' | ' | ' | ' | ' |
Loans with no related allowance recorded: | ' | ' | ' | ' | ' |
Recorded Investment | 888 | 1,105 | 888 | 1,105 | 992 |
Unpaid Principal Balance | 985 | 1,202 | 985 | 1,202 | 1,088 |
Average Recorded Investment | ' | ' | 940 | 1,164 | 1,119 |
Interest Income Recognized | ' | ' | ' | ' | 1 |
Loans with an allowance recorded: | ' | ' | ' | ' | ' |
Recorded Investment | ' | 20 | ' | 20 | ' |
Unpaid Principal Balance | ' | 20 | ' | 20 | ' |
Related Allowance | ' | 2 | ' | 2 | ' |
Average Recorded Investment | ' | ' | ' | 20 | ' |
Total impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | 888 | 1,125 | 888 | 1,125 | 992 |
Unpaid Principal Balance | 985 | 1,222 | 985 | 1,222 | 1,088 |
Average Recorded Investment | ' | ' | 940 | 1,184 | 1,119 |
Interest Income Recognized | ' | ' | ' | ' | 1 |
Commercial Real Estate Agriculture Mortgages [Member] | ' | ' | ' | ' | ' |
Loans with no related allowance recorded: | ' | ' | ' | ' | ' |
Recorded Investment | 1,569 | 1,607 | 1,569 | 1,607 | 1,592 |
Unpaid Principal Balance | 1,569 | 1,607 | 1,569 | 1,607 | 1,592 |
Average Recorded Investment | ' | ' | 1,580 | 1,618 | 1,609 |
Interest Income Recognized | ' | ' | 55 | 56 | 112 |
Total impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | 1,569 | 1,607 | 1,569 | 1,607 | 1,592 |
Unpaid Principal Balance | 1,569 | 1,607 | 1,569 | 1,607 | 1,592 |
Average Recorded Investment | ' | ' | 1,580 | 1,618 | 1,609 |
Interest Income Recognized | ' | ' | 55 | 56 | 112 |
Total Commercial Real Estate [Member] | ' | ' | ' | ' | ' |
Loans with no related allowance recorded: | ' | ' | ' | ' | ' |
Recorded Investment | 2,457 | 2,712 | 2,457 | 2,712 | 2,584 |
Unpaid Principal Balance | 2,554 | 2,809 | 2,554 | 2,809 | 2,680 |
Average Recorded Investment | ' | ' | 2,520 | 2,782 | 2,728 |
Interest Income Recognized | ' | ' | 55 | 56 | 113 |
Loans with an allowance recorded: | ' | ' | ' | ' | ' |
Recorded Investment | ' | 20 | ' | 20 | ' |
Unpaid Principal Balance | ' | 20 | ' | 20 | ' |
Related Allowance | ' | 2 | ' | 2 | ' |
Average Recorded Investment | ' | ' | ' | 20 | ' |
Total impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | 2,457 | 2,732 | 2,457 | 2,732 | 2,584 |
Unpaid Principal Balance | 2,554 | 2,829 | 2,554 | 2,829 | 2,680 |
Average Recorded Investment | ' | ' | 2,520 | 2,802 | 2,728 |
Interest Income Recognized | ' | ' | 55 | 56 | 113 |
Commercial and Industrial [Member] | ' | ' | ' | ' | ' |
Loans with no related allowance recorded: | ' | ' | ' | ' | ' |
Recorded Investment | 81 | 45 | 81 | 45 | 109 |
Unpaid Principal Balance | 81 | 45 | 81 | 45 | 109 |
Average Recorded Investment | ' | ' | 97 | 49 | 99 |
Loans with an allowance recorded: | ' | ' | ' | ' | ' |
Recorded Investment | ' | 105 | ' | 105 | ' |
Unpaid Principal Balance | ' | 105 | ' | 105 | ' |
Related Allowance | ' | 11 | ' | 11 | ' |
Average Recorded Investment | ' | ' | ' | 15 | ' |
Total impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | 81 | 150 | 81 | 150 | 109 |
Unpaid Principal Balance | 81 | 150 | 81 | 150 | 109 |
Average Recorded Investment | ' | ' | 97 | 64 | 99 |
Total Commercial and Industrial [Member] | ' | ' | ' | ' | ' |
Loans with no related allowance recorded: | ' | ' | ' | ' | ' |
Recorded Investment | 81 | 45 | 81 | 45 | 109 |
Unpaid Principal Balance | 81 | 45 | 81 | 45 | 109 |
Average Recorded Investment | ' | ' | 97 | 49 | 99 |
Loans with an allowance recorded: | ' | ' | ' | ' | ' |
Recorded Investment | ' | 105 | ' | 105 | ' |
Unpaid Principal Balance | ' | 105 | ' | 105 | ' |
Related Allowance | ' | 11 | ' | 11 | ' |
Average Recorded Investment | ' | ' | ' | 15 | ' |
Total impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | 81 | 150 | 81 | 150 | 109 |
Unpaid Principal Balance | 81 | 150 | 81 | 150 | 109 |
Average Recorded Investment | ' | ' | $97 | $64 | $99 |
Recovered_Sheet1
Loans and Allowance for Loan Losses (Details 7) (USD $) | 3 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | |||||
Allowance for loan losses. beginning balance | $7,056 | $7,219 | $7,357 | $7,516 | ' | |||||
Charge-offs | ' | -15 | ' | -125 | ' | |||||
Recoveries | 12 | 52 | [1] | 16 | 16 | ' | ||||
Provision (decrease) increase | -100 | [1] | -200 | [1] | -100 | [2] | -50 | [2] | ' | |
Allowance for loan losses, ending balance | 6,968 | 7,056 | 7,273 | 7,357 | ' | |||||
Collectively evaluated for impairment | 6,968 | ' | ' | ' | 7,219 | |||||
Ending balances: Loans | ' | ' | ' | ' | ' | |||||
Loans Receivable, gross | 447,747 | ' | ' | ' | 437,872 | |||||
Individually evaluated for impairment | 2,538 | ' | ' | ' | 2,693 | |||||
Collectively evaluated for impairment | 445,209 | ' | ' | ' | 435,179 | |||||
Total Commercial Real Estate [Member] | ' | ' | ' | ' | ' | |||||
Allowance for loan losses. beginning balance | 3,511 | 3,657 | 3,220 | 3,575 | ' | |||||
Recoveries | 3 | 4 | ' | ' | ' | |||||
Provision (decrease) increase | -106 | -150 | 8 | -355 | ' | |||||
Allowance for loan losses, ending balance | 3,408 | 3,511 | 3,228 | 3,220 | ' | |||||
Collectively evaluated for impairment | 3,408 | ' | ' | ' | 3,657 | |||||
Ending balances: Loans | ' | ' | ' | ' | ' | |||||
Loans Receivable, gross | 233,612 | ' | ' | ' | 221,175 | |||||
Individually evaluated for impairment | 2,457 | ' | ' | ' | 2,584 | |||||
Collectively evaluated for impairment | 231,155 | ' | ' | ' | 218,591 | |||||
Total Consumer Real Estate [Member] | ' | ' | ' | ' | ' | |||||
Allowance for loan losses. beginning balance | 1,402 | 1,346 | 1,480 | 1,510 | ' | |||||
Charge-offs | ' | ' | ' | -78 | ' | |||||
Recoveries | ' | 5 | ' | ' | ' | |||||
Provision (decrease) increase | 44 | 51 | -22 | 48 | ' | |||||
Allowance for loan losses, ending balance | 1,446 | 1,402 | 1,458 | 1,480 | ' | |||||
Collectively evaluated for impairment | 1,446 | ' | ' | ' | 1,346 | |||||
Ending balances: Loans | ' | ' | ' | ' | ' | |||||
Loans Receivable, gross | 157,191 | [3] | ' | ' | ' | 159,239 | [3] | |||
Collectively evaluated for impairment | 157,191 | ' | ' | ' | 159,239 | |||||
Total Commercial and Industrial [Member] | ' | ' | ' | ' | ' | |||||
Allowance for loan losses. beginning balance | 1,342 | 1,416 | 1,896 | 1,640 | ' | |||||
Charge-offs | ' | ' | ' | -41 | ' | |||||
Recoveries | 9 | 43 | 16 | 16 | ' | |||||
Provision (decrease) increase | 12 | -117 | -107 | 281 | ' | |||||
Allowance for loan losses, ending balance | 1,363 | 1,342 | 1,805 | 1,896 | ' | |||||
Collectively evaluated for impairment | 1,363 | ' | ' | ' | 1,416 | |||||
Ending balances: Loans | ' | ' | ' | ' | ' | |||||
Loans Receivable, gross | 53,221 | ' | ' | ' | 53,395 | |||||
Individually evaluated for impairment | 81 | ' | ' | ' | 109 | |||||
Collectively evaluated for impairment | 53,140 | ' | ' | ' | 53,286 | |||||
Consumer [Member] | ' | ' | ' | ' | ' | |||||
Allowance for loan losses. beginning balance | 104 | 102 | 62 | 61 | ' | |||||
Charge-offs | ' | -15 | ' | -6 | ' | |||||
Provision (decrease) increase | -24 | 17 | 19 | 7 | ' | |||||
Allowance for loan losses, ending balance | 80 | 104 | 81 | 62 | ' | |||||
Collectively evaluated for impairment | 80 | ' | ' | ' | 102 | |||||
Ending balances: Loans | ' | ' | ' | ' | ' | |||||
Loans Receivable, gross | 3,723 | ' | ' | ' | 4,063 | |||||
Collectively evaluated for impairment | 3,723 | ' | ' | ' | 4,063 | |||||
Unallocated [Member] | ' | ' | ' | ' | ' | |||||
Allowance for loan losses. beginning balance | 697 | 698 | 699 | 730 | ' | |||||
Provision (decrease) increase | -26 | -1 | 2 | -31 | ' | |||||
Allowance for loan losses, ending balance | 671 | 697 | 701 | 699 | ' | |||||
Collectively evaluated for impairment | $671 | ' | ' | ' | $698 | |||||
[1] | The Corporation recognized a $200,000 credit provision in the first quarter of 2014 and a $100,000 credit provision in the second quarter of 2014 as a result of lower levels of total classified loans, impaired loans, non-accrual loans, recoveries in excess of charge-offs, continuing declines in historic loss ratios, and improving qualitative factors. | |||||||||
[2] | The Corporation recognized a $50,000 credit provision in the first quarter of 2013 and a $100,000 credit provision in the second quarter of 2013 as a result of lower levels of non-performing and delinquent loans, minimal charge-offs, and no material changes in gross loans. | |||||||||
[3] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $8,138,000 and $4,866,000 asof June 30, 2014 and December 31, 2013, respectively. |
Fair_Value_Presentation_Detail
Fair Value Presentation (Details Narrative) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
CRA Fund Investment Book Value | $5,000 | $5,000 |
Bank stocks Book Value | 318 | 151 |
Bank stocks Fair Market Value | $326 | $171 |
Fair_Value_Presentation_Detail1
Fair Value Presentation (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | |||
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | $307,797 | $300,328 | $305,442 |
Fair Value Measured on a Recurring Basis [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 307,797 | 300,328 | ' |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 302,471 | 295,157 | ' |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 5,326 | 5,171 | ' |
U.S. government agencies [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 37,938 | 39,667 | ' |
U.S. government agencies [Member] | Fair Value Measured on a Recurring Basis [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 37,938 | 39,667 | ' |
U.S. government agencies [Member] | Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 37,938 | 39,667 | ' |
U.S. agency mortgage-backed securities [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 56,193 | 51,923 | ' |
U.S. agency mortgage-backed securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 56,193 | 51,923 | ' |
U.S. agency mortgage-backed securities [Member] | Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 56,193 | 51,923 | ' |
U.S. agency collateralized mortgage obligations [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 58,069 | 41,688 | ' |
U.S. agency collateralized mortgage obligations [Member] | Fair Value Measured on a Recurring Basis [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 58,069 | 41,688 | ' |
U.S. agency collateralized mortgage obligations [Member] | Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 58,069 | 41,688 | ' |
Private collateralized mortgage obligations [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | ' | 4,041 | ' |
Private collateralized mortgage obligations [Member] | Fair Value Measured on a Recurring Basis [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | ' | 4,041 | ' |
Private collateralized mortgage obligations [Member] | Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | ' | 4,041 | ' |
Corporate bonds [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 47,012 | 56,194 | ' |
Corporate bonds [Member] | Fair Value Measured on a Recurring Basis [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 47,012 | 56,194 | ' |
Corporate bonds [Member] | Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 47,012 | 56,194 | ' |
Obligations of states and political subdivisions [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 103,259 | 101,644 | ' |
Obligations of states and political subdivisions [Member] | Fair Value Measured on a Recurring Basis [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 103,259 | 101,644 | ' |
Obligations of states and political subdivisions [Member] | Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 103,259 | 101,644 | ' |
Marketable equity securities [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 5,326 | 5,171 | ' |
Marketable equity securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | 5,326 | 5,171 | ' |
Marketable equity securities [Member] | Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ' | ' | ' |
Recurring Fair Value Measurements | ' | ' | ' |
Securities available for sale (at fair value) | $5,326 | $5,171 | ' |
Fair_Value_Presentation_Detail2
Fair Value Presentation (Details 1) (Fair Value Measured on a Nonrecurring Basis [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Non-Recurring Fair Value Measurements | ' | ' |
Impaired Loans | $2,538 | $2,693 |
OREO | 56 | 39 |
Total Fair Value, non-recurring | 2,594 | 2,732 |
Significant Unobservable Inputs (Level III) [Member] | ' | ' |
Non-Recurring Fair Value Measurements | ' | ' |
Impaired Loans | 2,538 | 2,693 |
OREO | 56 | 39 |
Total Fair Value, non-recurring | $2,594 | $2,732 |
Fair_Value_Presentation_Detail3
Fair Value Presentation (Details 2) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | ||
Impaired Loans [Member] | ' | ' | ||
Total Fair Value, non-recurring | $2,538 | $2,693 | ||
Valuation Techniques | 'Appraisal of collateral | [1] | 'Appraisal of collateral | [1] |
Impaired Loans [Member] | Lower Range [Member] | ' | ' | ||
Unobservable inputs - Appraisal adjustments | -20.00% | [2] | -20.00% | [2] |
Unobservable inputs - Liquidation expenses | -10.00% | [2] | -10.00% | [2] |
Impaired Loans [Member] | Upper Range [Member] | ' | ' | ||
Unobservable inputs - Appraisal adjustments | 0.00% | [2] | 0.00% | [2] |
Unobservable inputs - Liquidation expenses | 0.00% | [2] | 0.00% | [2] |
Impaired Loans [Member] | Weighted Average [Member] | ' | ' | ||
Unobservable inputs - Appraisal adjustments | -20.00% | [2] | -20.00% | [2] |
Unobservable inputs - Liquidation expenses | -10.00% | [2] | -10.00% | [2] |
Other Real Estate Owned [Member] | ' | ' | ||
Total Fair Value, non-recurring | $56 | $39 | ||
Valuation Techniques | 'Appraisal of collateral | [1],[3] | 'Appraisal of collateral | [1],[3] |
Other Real Estate Owned [Member] | Lower Range [Member] | ' | ' | ||
Unobservable inputs - Liquidation expenses | -7.00% | [2] | -7.00% | [2] |
Other Real Estate Owned [Member] | Upper Range [Member] | ' | ' | ||
Unobservable inputs - Liquidation expenses | -1.00% | [2] | -1.00% | [2] |
Other Real Estate Owned [Member] | Weighted Average [Member] | ' | ' | ||
Unobservable inputs - Liquidation expenses | -7.00% | [2] | -7.00% | [2] |
[1] | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III inputs which are not identifiable. | |||
[2] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. | |||
[3] | Includes qualitative adjustments by management and estimated liquidation expenses. |
Interim_Disclosures_about_Fair2
Interim Disclosures about Fair Value of Financial Instruments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Fair value of financial assets | ' | ' | ' | ' |
Cash and cash equivalents | $45,021 | $24,577 | $41,636 | $35,660 |
Securities available for sale | 307,797 | 300,328 | 305,442 | ' |
Loans held for sale | 108 | 59 | 280 | ' |
Loans, net of allowance | 441,182 | 431,001 | 411,272 | ' |
Regulatory stock | 4,034 | 3,660 | 3,853 | ' |
Bank-owned life insurance | 20,239 | 19,911 | 19,552 | ' |
Financial Liabilities: | ' | ' | ' | ' |
Demand deposits | 183,149 | 173,070 | 168,967 | ' |
Total deposits | 683,701 | 656,626 | 650,708 | ' |
Short-term borrowings | 5,410 | 3,900 | ' | ' |
Long-term debt | 69,150 | 65,000 | 68,000 | ' |
Carrying Amount [Member] | ' | ' | ' | ' |
Fair value of financial assets | ' | ' | ' | ' |
Cash and cash equivalents | 45,021 | 24,577 | ' | ' |
Securities available for sale | 307,797 | 300,328 | ' | ' |
Loans held for sale | 108 | 59 | ' | ' |
Loans, net of allowance | 441,182 | 431,001 | ' | ' |
Regulatory stock | 4,034 | 3,660 | ' | ' |
Bank-owned life insurance | 20,239 | 19,911 | ' | ' |
Accrued interest receivable | 3,766 | 3,605 | ' | ' |
Financial Liabilities: | ' | ' | ' | ' |
Demand deposits | 183,149 | 173,070 | ' | ' |
Interest-bearing demand deposits | 9,494 | 13,055 | ' | ' |
NOW accounts | 79,818 | 70,540 | ' | ' |
Savings accounts | 129,659 | 120,935 | ' | ' |
Money market deposit accounts | 64,691 | 61,882 | ' | ' |
Time deposits | 216,890 | 217,144 | ' | ' |
Total deposits | 683,701 | 656,626 | ' | ' |
Short-term borrowings | 5,410 | 3,900 | ' | ' |
Long-term debt | 69,150 | 65,000 | ' | ' |
Accrued interest payable | 685 | 699 | ' | ' |
Fair Value [Member] | ' | ' | ' | ' |
Fair value of financial assets | ' | ' | ' | ' |
Cash and cash equivalents | 45,021 | 24,577 | ' | ' |
Securities available for sale | 307,797 | 300,328 | ' | ' |
Loans held for sale | 108 | 59 | ' | ' |
Loans, net of allowance | 435,329 | 434,049 | ' | ' |
Regulatory stock | 4,034 | 3,660 | ' | ' |
Bank-owned life insurance | 20,239 | 19,911 | ' | ' |
Accrued interest receivable | 3,766 | 3,605 | ' | ' |
Financial Liabilities: | ' | ' | ' | ' |
Demand deposits | 183,149 | 173,070 | ' | ' |
Interest-bearing demand deposits | 9,494 | 13,055 | ' | ' |
NOW accounts | 79,818 | 70,540 | ' | ' |
Savings accounts | 129,659 | 120,935 | ' | ' |
Money market deposit accounts | 64,691 | 61,882 | ' | ' |
Time deposits | 219,651 | 221,172 | ' | ' |
Total deposits | 686,462 | 660,654 | ' | ' |
Short-term borrowings | 5,410 | 3,900 | ' | ' |
Long-term debt | 70,430 | 66,934 | ' | ' |
Accrued interest payable | 685 | 699 | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ' | ' | ' | ' |
Fair value of financial assets | ' | ' | ' | ' |
Cash and cash equivalents | 45,021 | 24,577 | ' | ' |
Securities available for sale | 5,326 | 5,171 | ' | ' |
Loans held for sale | 108 | 59 | ' | ' |
Regulatory stock | 4,034 | 3,660 | ' | ' |
Bank-owned life insurance | 20,239 | 19,911 | ' | ' |
Accrued interest receivable | 3,766 | 3,605 | ' | ' |
Financial Liabilities: | ' | ' | ' | ' |
Demand deposits | 183,149 | 173,070 | ' | ' |
Interest-bearing demand deposits | 9,494 | 13,055 | ' | ' |
NOW accounts | 79,818 | 70,540 | ' | ' |
Savings accounts | 129,659 | 120,935 | ' | ' |
Money market deposit accounts | 64,691 | 61,882 | ' | ' |
Total deposits | 466,811 | 439,482 | ' | ' |
Short-term borrowings | 5,410 | 3,900 | ' | ' |
Accrued interest payable | 685 | 699 | ' | ' |
Significant Other Observable Inputs (Level II) [Member] | ' | ' | ' | ' |
Fair value of financial assets | ' | ' | ' | ' |
Securities available for sale | 302,471 | 295,157 | ' | ' |
Significant Unobservable Inputs (Level III) [Member] | ' | ' | ' | ' |
Fair value of financial assets | ' | ' | ' | ' |
Loans, net of allowance | 435,329 | 434,049 | ' | ' |
Financial Liabilities: | ' | ' | ' | ' |
Time deposits | 219,651 | 221,172 | ' | ' |
Total deposits | 219,651 | 221,172 | ' | ' |
Long-term debt | $70,430 | $66,934 | ' | ' |
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Details Narrative) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Total unfunded credit commitments | $156,000 |
Firm Loan Commitments [Member] | ' |
Total unfunded credit commitments | 16,800 |
Lines of Credit [Member] | ' |
Total unfunded credit commitments | 129,200 |
Open Letter of Credit [Member] | ' |
Total unfunded credit commitments | $10,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | Unrealized Gain (Losses) on Securities AFS [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | |||
Balance, beginning | ($189) | ($3,940) | ($1,083) | ($1,767) | ($3,940) | $5,345 | $6,663 |
Other comprehensive income (loss) before reclassifications | ' | ' | ' | 1,962 | 2,610 | -6,000 | -712 |
Amount reclassified into (from) accumulated other comprehensive income | ' | ' | ' | -384 | -437 | -428 | -606 |
Period change | ' | ' | ' | 1,578 | 2,173 | -6,428 | -1,318 |
Balance, ending | ($189) | ($3,940) | ($1,083) | ($189) | ($1,767) | ($1,083) | $5,345 |
Federal income tax rate | ' | ' | ' | 34.00% | 34.00% | 34.00% | 34.00% |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Details 1) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Unrealized Gain (Losses) on Securities AFS [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | Unrealized Gain (Losses) on Securities AFS [Member] | |||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Reclassification out of AOCI - Impairment [Member] | Reclassification out of AOCI - Impairment [Member] | Reclassification out of AOCI - Impairment [Member] | |||||||||
Gains on securities transactions, net | $582 | $741 | $1,267 | $1,679 | ' | ' | ' | ' | $582 | $741 | $1,267 | $1,679 | ' | ' | ' |
Impairment losses on securities | ' | 93 | 22 | 113 | ' | ' | ' | ' | ' | ' | ' | ' | -93 | -22 | -113 |
Provision for federal income taxes | -347 | -292 | -746 | -684 | ' | ' | ' | ' | -198 | -252 | -431 | -571 | 32 | 7 | 39 |
Amount reclassified into (from) accumulated other comprehensive income | ' | ' | ' | ' | $384 | $437 | $428 | $606 | $384 | $489 | $836 | $1,108 | ($61) | ($15) | ($74) |