Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 15, 2016 | Jun. 30, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | ENB Financial Corp | ||
Entity Central Index Key | 1,437,479 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
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 Public Float | $ 57,131,903 | ||
Entity Common Stock, Shares Outstanding | 2,849,758 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 15,426 | $ 16,727 |
Interest-bearing deposits in other banks | 28,801 | 26,685 |
Total cash and cash equivalents | 44,227 | 43,412 |
Securities available for sale (at fair value) | 289,423 | 295,822 |
Loans held for sale | 1,126 | 506 |
Loans (net of unearned income) | 520,283 | 471,168 |
Less: Allowance for loan losses | 7,078 | 7,141 |
Net loans | 513,205 | 464,027 |
Premises and equipment | 21,696 | 22,447 |
Regulatory stock | 4,314 | 3,227 |
Bank owned life insurance | 23,869 | 20,603 |
Other assets | 7,741 | 7,164 |
Total assets | 905,601 | 857,208 |
Deposits: | ||
Noninterest-bearing | 236,214 | 210,444 |
Interest-bearing | 503,848 | 489,207 |
Total deposits | 740,062 | $ 699,651 |
Short-term borrowings | 8,736 | |
Long-term debt | 59,594 | $ 62,300 |
Other liabilities | 2,107 | 2,490 |
Total liabilities | 810,499 | 764,441 |
Stockholders' equity: | ||
Common stock, par value $0.20; Shares: Authorized 12,000,000 Issued 2,869,557 and Outstanding 2,849,524 (Issued 2,869,557 and Outstanding 2,856,836 as of 12/31/14) | 574 | 574 |
Capital surplus | 4,395 | 4,375 |
Retained earnings | 91,029 | 87,200 |
Accumulated other comprehensive income (loss) net of tax | (252) | 1,002 |
Less: Treasury stock cost on 20,033 shares (12,721 shares as of 12/31/14) | (644) | (384) |
Total stockholders' equity | 95,102 | 92,767 |
Total liabilities and stockholders' equity | $ 905,601 | $ 857,208 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Common stock, par value | $ 0.20 | $ 0.20 |
Common stock, authorized | 12,000,000 | 12,000,000 |
Common stock, issued | 2,869,557 | 2,869,557 |
Common stock, outstanding | 2,849,524 | 2,856,836 |
Treasury shares | 20,033 | 12,721 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest and dividend income: | |||
Interest and fees on loans | $ 20,205 | $ 19,368 | $ 19,044 |
Interest on securities available for sale | |||
Taxable | 2,969 | 4,172 | 3,972 |
Tax-exempt | 3,234 | 3,289 | 3,676 |
Interest on deposits at other banks | 75 | 63 | 73 |
Dividend income | 359 | 245 | 141 |
Total interest and dividend income | 26,842 | 27,137 | 26,906 |
Interest expense: | |||
Interest on deposits | 2,484 | 3,090 | 3,489 |
Interest on borrowings | 1,260 | 1,586 | 1,893 |
Total interest expense | 3,744 | 4,676 | 5,382 |
Net interest income | 23,098 | 22,461 | 21,524 |
Provision (credit) for loan losses | 150 | (50) | (225) |
Net interest income after provision (credit) for loan losses | 22,948 | 22,511 | 21,749 |
Other income: | |||
Trust and investment services income | 1,286 | 1,302 | 1,242 |
Service fees | 2,019 | 1,770 | 1,751 |
Commissions | 2,033 | 1,956 | 1,965 |
Gains on securities transactions, net | $ 2,840 | 3,131 | 3,388 |
Impairment losses on securities: | |||
Impairment gains on investment securities | 15 | 148 | |
Non-credit related losses on securities not expected to be sold in other comprehensive income before tax | (37) | (319) | |
Net impairment losses on investment securities | (22) | (171) | |
Gains on sale of mortgages | $ 806 | 414 | 241 |
Earnings on bank-owned life insurance | 726 | 640 | 637 |
Other income | 345 | 357 | 344 |
Total other income | 10,055 | 9,548 | 9,397 |
Operating expenses: | |||
Salaries and employee benefits | 14,796 | 13,943 | 12,913 |
Occupancy | 2,092 | 1,958 | 1,745 |
Equipment | 1,126 | 1,102 | 967 |
Advertising & marketing | 552 | 474 | 486 |
Computer software & data processing | 1,594 | 1,624 | 1,582 |
Shares tax | 781 | 714 | 863 |
Professional services | 1,443 | 1,395 | 1,240 |
Other expense | 2,351 | 2,211 | 2,139 |
Total operating expenses | 24,735 | 23,421 | 21,935 |
Income before income taxes | 8,268 | 8,638 | 9,211 |
Provision for federal income taxes | 1,358 | 1,546 | 1,501 |
Net income | $ 6,910 | $ 7,092 | $ 7,710 |
Earnings per share of common stock | $ 2.42 | $ 2.48 | $ 2.70 |
Cash dividends paid per share | $ 1.08 | $ 1.07 | $ 1.04 |
Weighted average shares outstanding | 2,853,310 | 2,855,974 | 2,851,991 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income | $ 6,910 | $ 7,092 | $ 7,710 |
Other-than-temporarily impaired securities available for sale: | |||
Gains arising during the period | 15 | 148 | |
Income tax effect | (5) | (50) | |
Total | 10 | 98 | |
Losses recognized in earnings | 22 | 171 | |
Income tax effect | (7) | (58) | |
Total | 15 | 113 | |
Unrealized holding gains on other-than-temporarily impaired securities available for sale, net of tax | 25 | 211 | |
Securities available for sale not other-than-temporarily impaired: | |||
Unrealized gains (losses) arising during the period | $ 941 | 10,581 | (12,997) |
Income tax effect | (320) | (3,598) | 4,419 |
Total | 621 | 6,983 | (8,578) |
Gains recognized in earnings | (2,840) | (3,131) | (3,388) |
Income tax effect | 965 | 1,065 | 1,152 |
Total | (1,875) | (2,066) | (2,236) |
Unrealized holding gains (losses) on securities available for sale not other-than-temporarily impaired, net of tax | (1,254) | 4,917 | (10,814) |
Other comprehensive income (loss), net of tax | (1,254) | 4,942 | (10,603) |
Comprehensive Income (Loss) | $ 5,656 | $ 12,034 | $ (2,893) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Balance, beginning at Dec. 31, 2012 | $ 89,515 | $ 574 | $ 4,320 | $ 78,421 | $ 6,663 | $ (463) |
Net income | 7,710 | $ 7,710 | ||||
Other comprehensive income (loss), net of tax | (10,603) | $ (10,603) | ||||
Treasury stock purchased | (357) | $ (357) | ||||
Treasury stock issued | 477 | $ 33 | $ 444 | |||
Cash dividends paid | (2,966) | $ (2,966) | ||||
Balance, ending at Dec. 31, 2013 | 83,776 | $ 574 | $ 4,353 | 83,165 | $ (3,940) | $ (376) |
Net income | 7,092 | $ 7,092 | ||||
Other comprehensive income (loss), net of tax | 4,942 | $ 4,942 | ||||
Treasury stock purchased | (485) | $ (485) | ||||
Treasury stock issued | 499 | $ 22 | $ 477 | |||
Cash dividends paid | (3,057) | $ (3,057) | ||||
Balance, ending at Dec. 31, 2014 | 92,767 | $ 574 | $ 4,375 | 87,200 | $ 1,002 | $ (384) |
Net income | 6,910 | $ 6,910 | ||||
Other comprehensive income (loss), net of tax | (1,254) | $ (1,254) | ||||
Treasury stock purchased | (752) | $ (752) | ||||
Treasury stock issued | 512 | $ 20 | $ 492 | |||
Cash dividends paid | (3,081) | $ (3,081) | ||||
Balance, ending at Dec. 31, 2015 | $ 95,102 | $ 574 | $ 4,395 | $ 91,029 | $ (252) | $ (644) |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract] | ||||||||||||||||
Treasury stock purchased, shares | 12,135 | 22,935 | 15,650 | 12,200 | ||||||||||||
Treasury stock issued, shares | 15,623 | 16,460 | 16,274 | |||||||||||||
Cash dividends paid, per share | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 1.08 | $ 1.07 | $ 1.04 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract] | |||
Net income | $ 6,910 | $ 7,092 | $ 7,710 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net amortization of securities premiums and discounts and loan fees | 6,268 | 5,158 | 4,025 |
(Decrease) increase in interest receivable | 106 | (101) | (121) |
Decrease in interest payable | (130) | (113) | (94) |
Provision (credit) for loan losses | 150 | (50) | (225) |
Gains on securities transactions, net | $ (2,840) | (3,131) | (3,388) |
Impairment losses on securities | 22 | 171 | |
Gains on sale of mortgages | $ (806) | (414) | (241) |
Loans originated for sale | (25,863) | (13,445) | (11,373) |
Proceeds from sales of loans | 26,049 | 13,412 | 12,323 |
Earnings on bank-owned life insurance | (726) | (640) | (637) |
Loss on sale of other real estate owned | 30 | 70 | 15 |
Depreciation of premises and equipment and amortization of software | 1,548 | 1,453 | 1,329 |
Deferred income tax | $ 275 | $ 531 | (174) |
Decrease in prepaid federal deposit insurance | 936 | ||
Other assets and other liabilities, net | $ (563) | $ (705) | 404 |
Net cash provided by operating activities | 10,408 | 9,139 | 10,660 |
Securities available for sale: | |||
Proceeds from maturities, calls, and repayments | 45,941 | 35,390 | 47,527 |
Proceeds from sales | 154,384 | 155,363 | 116,347 |
Purchases | (199,023) | (180,668) | (175,355) |
Proceeds from sale of other real estate owned | 176 | 74 | 252 |
Purchase of regulatory bank stock | (1,511) | (1,016) | (475) |
Redemptions of regulatory bank stock | 424 | 1,449 | 963 |
Purchase of bank-owned life insurance | (2,540) | (52) | (58) |
Net increase in loans | (49,695) | (33,290) | (24,057) |
Purchases of premises and equipment, net | (689) | (791) | (3,355) |
Purchase of computer software | (180) | (145) | (51) |
Net cash used for investing activities | (52,713) | (23,686) | (38,262) |
Cash flows from financing activities: | |||
Net increase in demand, NOW, and savings accounts | 60,876 | 58,600 | 32,723 |
Net decrease in time deposits | (20,465) | (15,575) | (9,258) |
Net increase (decrease) in short-term borrowings | 8,736 | (3,900) | 3,900 |
Proceeds from long-term debt | 12,794 | 13,800 | 5,000 |
Repayments of long-term debt | (15,500) | (16,500) | (13,000) |
Dividends paid | (3,081) | (3,057) | (2,966) |
Treasury stock sold | 512 | 499 | 477 |
Treasury stock purchased | (752) | (485) | (357) |
Net cash provided by financing activities | 43,120 | 33,382 | 16,519 |
Increase (decrease) in cash and cash equivalents | 815 | 18,835 | (11,083) |
Cash and cash equivalents at beginning of period | 43,412 | 24,577 | 35,660 |
Cash and cash equivalents at end of period | 44,227 | 43,412 | 24,577 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 3,874 | 4,789 | 5,476 |
Income taxes paid | 1,067 | 750 | 1,200 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Net transfer of other real estate owned from loans | 137 | 173 | 39 |
Fair value adjustments for securities available for sale | $ (1,899) | $ 7,487 | $ 16,064 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations ENB Financial Corp, through its wholly owned subsidiary, Ephrata National Bank, provides financial services to Northern Lancaster County and surrounding communities. ENB Financial Corp, a bank holding company, was formed on July 1, 2008, to become the parent company of Ephrata National Bank, which existed as a stand-alone national bank since its formation on April 11, 1881. The Corporation's wholly owned subsidiary, Ephrata National Bank, offers a full array of banking services including loan and deposit products for both personal and commercial customers, as well as trust and investment services, through ten office locations. Basis of Presentation The consolidated financial statements of ENB Financial Corp and its subsidiary, Ephrata National Bank, (collectively “the Corporation”) conform to U.S. generally accepted accounting principles (GAAP). The preparation of these statements requires that management make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Material estimates of the Corporation, including the allowance for loan losses, the fair market value of financial instruments, and deferred tax assets or liabilities, are evaluated regularly by management. Actual results could differ from the reported estimates given different conditions or assumptions. The accounting and reporting policies followed by the Corporation conform with U.S. GAAP and to general practices within the banking industry. All significant intercompany transactions have been eliminated in consolidation. The following is a summary of the more significant policies. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents are identified as cash and due from banks and include cash on hand, collection items, amounts due from banks, and interest bearing deposits in other banks with maturities of less than 90 days. Securities Available for Sale The Corporation classifies its entire portfolio of debt and equity securities as available for sale securities, which the Corporation reports at fair value. Any unrealized valuation gains or losses in the portfolio are reported as a separate component of stockholders' equity, net of deferred income taxes. The constant yield method is used for the amortization of premiums and the accretion of discounts for all of the Corporation's securities with the exception of collateralized mortgage obligations (CMOs) and mortgage backed securities (MBS). The constant yield method maintains a stable yield on the instrument through its maturity. For CMOs and MBS, a two-step/proration method is used for amortization and accretion. The first step is a proration based on the current pay down. This component ensures that the book price stays level with par. The second step amortizes or accretes the remaining premium or discount to the calculated final amortization or accretion date based on the current three-month constant prepayment rates. Net gains or losses realized on sales or calls of securities are reported as gains or losses on security transactions during the year of sale, using the specific identification method. Other Than Temporary Impairment (“OTTI”) Management monitors all of the Corporation's securities for OTTI on a monthly basis and determines whether any impairment should be recorded. A number of factors are considered in determining whether a security is impaired, including, but not limited to, the following: • Percentage of unrealized losses, • Period of time the security has had unrealized losses, • Type of security, • Maturity date of the instrument if a debt instrument, • The intent to sell the security or whether it is more likely than not that the Corporation would be required to sell the security before its anticipated recovery in market value, • Amount of projected credit losses based on current cash flow analysis, default and severity rates, and • Market dynamics impacting the market for and liquidity of the security. Management will more closely evaluate those securities that have unrealized losses of 10% or more and have had unrealized losses for more than twelve months. If management determines that the declines in value of the security are not temporary, or if management does not have the ability to hold the security until maturity, which is the case with equity securities, then management will record impairment on the security. For equity securities, typically the amount of impairment is the difference between the security's book value and current fair market value determined by obtaining independent market pricing. For debt securities evaluated for impairment, management will determine what portion of the unrealized valuation loss is attributed to projected or known loss of principal, and what portion is attributed to market pricing not reflective of the true value of the security, based on current cash flow analysis. Management will generally record impairment equivalent to the projected or known loss of principal, known as the credit loss. The other portion of the fair market value loss is attributed to market factors and it is management's opinion that these fair value losses are temporary and not permanent. All impairment is recorded as a loss on securities and is included in the Corporation's Consolidated Statements of Income. Loans Held for Investment Loans receivable, that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, generally are reported at the outstanding principal balances, reduced by any charge-offs and net of any deferred loan origination fees or costs. Net loan origination fees and costs are deferred and recognized as an adjustment of yield over the contractual life of the loan. Interest accrues daily on outstanding loan balances. Generally, the accrual of interest discontinues when the ability to collect the loan becomes doubtful or when a loan becomes more than 90 days past due as to principal and interest. These loans are referred to as non-accrual loans. Management may elect to continue the accrual of interest based on the expectation of future payments and/or the sufficiency of the underlying collateral. Loans Held for Sale Loans originated and intended for sale on the secondary market are carried at the lower of cost or fair value in the aggregate. In general, fixed-rate residential mortgage loans originated by the Corporation and held for sale are carried in the aggregate at the lower of cost or market. The Corporation originates loans for immediate sale with servicing retained and servicing released to several investors. Allowance for Loan Losses The allowance for loan losses is maintained at a level considered by management to be adequate to provide for known and inherent risks in the loan portfolio at the Consolidated Balance Sheets dates. The monthly provision or credit for loan losses is an expense or a reduction of expense which increases or decreases the allowance, and charge-offs, net of recoveries, decrease the allowance. The Corporation performs ongoing credit reviews of the loan portfolio and considers current economic conditions, historical loan loss experience, and other factors in determining the adequacy of the reserve balance. Loans determined to be uncollectible are charged to the allowance during the period in which such determination is made. In calculating the allowance, management will begin by compiling the balance of loans by credit quality for each loan segment in order that allocations can be made in aggregate based on historic losses and qualitative factors. Prior to calculating these aggregate allocations, management will individually evaluate commercial and commercial real estate loans for impairment. A loan is impaired when it is probable that a creditor will be unable to collect all principal and interest due according to the contractual terms of the loan agreement. All other loan types such as residential mortgages, home equity loans and lines of credit, and all other consumer loans, are not individually evaluated for impairment and are therefore allocated for in aggregate. These loans are considered to be large groups of smaller-balance homogenous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis, taking into consideration all circumstances concerning the loan, the creditworthiness and payment history of the borrower, the length of the payment delay, and the amount of shortfall in relation to the principal and interest owed. For loans deemed to be impaired, management will provide a specific allocation. This loan balance is then subtracted from the total loan balances being allocated for in the aggregate. The remaining balances, along with the full loan balances for the other loan types are then multiplied by an adjusted loss ratio, which is the sum of both the historical loss ratio and a qualitative factor adjustment. Generally both the historical loss ratio and the qualitative factor adjustment will increase as the credit rating of the loan deteriorates. The credit ratings begin with unclassified loans, which represent the best internal credit rating, also referred to as a “pass” credit and then continue with declining grades of special mention, substandard, doubtful, and loss. Special mention loans are no longer deemed to be a “pass” credit and require additional management attention. They are essentially placed on “watched” status and attempts are made to improve the credit to an unclassified status. If the credit would deteriorate further it would then be a substandard credit, which for regulatory purposes, is deemed to be a classified loan. Doubtful and loss credit grades represent further credit deterioration and are also considered classified loans. For each loan type, all of these credit rating categories are broken out with adjusted loss ratios. The loan balance is then multiplied by the adjusted loss ratio to produce the required allowance. The allowances are totaled and added to any specific allocations on impaired loans to arrive at the total allowance for loan losses for the Corporation. Management tracks and assigns a historical loss percentage for each loan rating category within each loan type. A rolling three-year historical loss ratio, calculated on a quarterly basis, with a 60%, 30%, and 10% weighting for the past three years is used. In this manner the historical loss percentage is heavily weighted to the current loss environment, but has sufficient weighting assigned to prior periods to avoid unnecessary volatile fluctuations based on just one period's data. Management currently utilizes nine qualitative factors that are adjusted based on changes in the lending environment and economic conditions. The qualitative factors include the following: • levels of and trends in delinquencies, non-accruals, and charge-offs, • trends in the nature and volume of the loan portfolio • changes in lending policies and procedures, • experience, ability, and depth of lending personnel and management oversight • national and local economic trends, • concentrations of credit, • external factors such as competition, legal, and regulatory requirements, • changes in the quality of loan review and Board oversight, • changes in the value of underlying collateral. The number of qualitative factors can change. Factors can be added for new risks or taken away if the risk no longer applies. Each loan type will have its own risk profile and management will evaluate and adjust each qualitative factor for each loan type quarterly, if necessary. For example, if one area of the loan portfolio is experiencing sharp increases in growth, it is likely the qualitative factor for trends in the loan portfolio would be increased for that loan type. As levels of delinquencies and non-accrual loans decline for any segment of the loan portfolio it is likely that factor would be reduced. In terms of the Corporation's loan portfolio, the commercial and industrial loans and commercial real estate loans are deemed to have more risk than the consumer real estate loans and other consumer loans in the portfolio. The commercial loans not secured by real estate are highly dependent on their financial condition and therefore are more dependent on economic conditions. The commercial loans secured by real estate are also dependent on economic conditions but generally have stronger forms of collateral. More recently, commercial real estate has been negatively impacted by devaluation so these commercial loans carry a higher qualitative factor for changes in the value of collateral. The commercial loans and commercial real estate loans have historically been responsible for the majority of the Corporation's delinquencies, non-accrual loans, and charge-offs, so both of these categories carry higher qualitative factors than consumer real estate loans and other consumer loans. The Corporation has historically experienced very low levels of consumer real estate and consumer loan charge-offs so these qualitative factors are set lower than the commercial real estate and commercial and industrial loans. More recently, the agriculture segment of the loan portfolio is growing faster than all other segments and, therefore, the qualitative factors for trends and collateral were increased in this area due to more volume and increased exposure to potential loss. Impaired and Non-Accrual Loans The definition of “impaired loans” is not the same as the definition of “non-accrual loans,” although the two categories overlap. Generally, a non-accrual loan will always be considered impaired due to payment delinquency or uncertain collection, but there are cases where an impaired loan is not considered non-accrual. The primary factors considered by management in determining impairment include payment status and collateral value, but could also include debt service coverage, financial health of the business, and other external factors that could impact the ability of the borrower to fully repay the loan. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan using the original interest rate and its recorded value or, as a practical expedient in the case of collateral-dependent loans, the difference between the fair value of the collateral and the recorded amount of the loan. When foreclosure is probable, impairment is measured based on the fair value of the collateral on a discounted basis, relative to the loan amount. Management will place a business or commercial loan on non-accrual status when it is determined that the loan is impaired, or when the loan is 90 days past due with a history of prolonged periods of delinquency. These customers will generally be placed on non-accrual status at the end of each quarter. Consumer loans over 90 days delinquent are generally charged off or, in the case of larger residential real estate loans, they would be placed on non-accrual status as the Corporation seeks to bring the customer current or pursue foreclosure options. When the borrower is on non-accrual, the Corporation will reverse any accrued interest on the books and will discontinue recognizing any interest income until the borrower is placed back on accrual status or fully pays off the loan balance plus any accrued interest. Payments received by the customer while the loan is on non-accrual are fully applied against principal. The Corporation maintains records of the full amount of interest that is owed by the borrower. A non-accrual loan will generally only be placed back on accrual status after the borrower has become current and has demonstrated six consecutive months of non-delinquency. Allowance for Off-Balance Sheet Extensions of Credit The Corporation maintains an allowance for off-balance sheet extensions of credit which would include any unadvanced amount on lines of credit and any letters of credit provided to borrowers. The allowance is carried as a liability and is included in other liabilities on the Corporation's Consolidated Balance Sheets. The liability was $ 455,000 310,000 of credit increases, this provision will also increase. Management follows the same methodology as the allowance for loan losses when calculating the allowance for off-balance sheet extensions of credit, with the exception of multiplying the unadvanced total by a high/low balance variance to arrive at the expected unadvanced portion that could be drawn upon at any time, or the amount at risk. The unadvanced amounts for each loan segment are broken down by credit classification. A historical loss ratio and qualitative factor are calculated for each credit classification by loan type. The historical loss ratio and qualitative factor are combined to produce an adjusted loss ratio which is multiplied by the amount at risk for each credit classification within each loan segment to arrive at an allocation. The allocations are summed to arrive at the total allowance for off-balance sheet extensions of credit. Other Real Estate Owned (OREO) OREO represents properties acquired through customer loan defaults. These properties are recorded at the lower of cost or fair value less projected disposal costs at acquisition date. Fair value is determined by current appraisals. Costs associated with holding OREO are charged to operational expense. OREO is a component of other assets on the Corporation's Consolidated Balance Sheets. The Corporation had no OREO as of December 31, 2015, and $ 69,000 Mortgage Servicing Rights (MSRs) The Corporation has agreements for the express purpose of selling residential mortgage loans on the secondary market, referred to as mortgage servicing rights. The Corporation maintains all servicing rights for loans currently sold through FHLB and Fannie Mae. The Corporation had $ 240,000 96,000 Management expects MSRs to continue to grow as a result of the recently expanded mortgage program. Premises and Equipment Land is carried at cost. Premises and equipment are carried at cost, less accumulated depreciation. Book depreciation is computed using straight-line methods over the estimated useful lives of generally fifteen thirty-nine four ten Transfer of Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Bank-Owned Life Insurance (BOLI) BOLI is carried by the Corporation at the cash surrender value of the underlying policies. Income earned on the policies is based on any increase in cash surrender value less the cost of the insurance, which varies according to age and health of the insured. The life insurance policies owned by the Corporation had a cash surrender value of $ 23,869,000 20,603,000 Outside of normal appreciation of the cash surrender value, the Corporation made an additional $ 2.5 3,266,000 15.9 Advertising Costs The Corporation expenses advertising costs as incurred. Advertising costs for the years ended December 31, 2015, 2014, and 2013, were $ 552,000 474,000 486,000 Income Taxes: An asset and liability approach is followed for financial accounting and reporting for income taxes. Accordingly, a net deferred tax asset or liability is recorded in the consolidated financial statements for the tax effects of temporary differences, which are items of income and expense reported in different periods for income tax and financial reporting purposes. Deferred tax expense is determined by the change in the assets or liabilities related to deferred income taxes. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Earnings per Share The Corporation currently maintains a simple capital structure with no stock option plans that would have a dilutive effect on earnings per share. Earnings per share are calculated by dividing net income by the weighted-average number of shares outstanding for the periods. Comprehensive Income (Loss) The Corporation is required to present comprehensive income (loss) in a full set of general-purpose consolidated financial statements for all periods presented. Other comprehensive income (loss) consists of unrealized holding gains and losses on the available for sale securities portfolio. Segment Disclosure U.S. generally accepted accounting principles establish standards for the manner in which public business enterprises report information about segments in the annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports issued to shareholders. It also establishes standards for related disclosures regarding financial products and services, geographic areas, and major customers. The Corporation has only one operating segment consisting of its banking and fiduciary operations. Pension Plans The Corporation has a noncontributory defined contribution pension plan covering substantially all employees. The Corporation contributes 5.0 5.0 The Corporation also provides an optional 401(K) plan, in which employees may elect to defer pre-tax salary dollars, subject to the maximum annual Internal Revenue Service contribution amounts. The Corporation will match 50 5 2.5 Trust Assets and Income Assets held by ENB's Money Management Group in a fiduciary or agency capacity for customers are not included in the Corporation's Consolidated Balance Sheets since these items are not assets of the Corporation. In accordance with banking industry practice, trust income is recognized on a cash basis, as such income does not differ significantly from amounts that would be recognized on an accrual basis. Trust income is reported in the Corporation's Consolidated Statements of Income under other income. Reclassification of Comparative Amounts Certain comparative amounts for the prior year have been reclassified to conform to current-year classifications. Such reclassifications had no effect on net income or stockholders' equity. Recently Issued Accounting Standards In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): years beginning after December 15, 2017, including interim periods within those fiscal years. The Corporation is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ds presented. This Update is not expected to have a significant impact on the Corporation's financial statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). In August 2015, the FASB issued ASU 2015-15, Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. In August 2015, the FASB issued ASU 2015-14, Revenue from Contract with Customers Topic 606 beginning after December 15, 2019. In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements issuance of this Update. In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) is permitted. This Update is not expected to have a significant impact on the Corporation's financial statements. In May 2015, the FASB issued ASU 2015-08 , Business Combinations – Pushdown Accounting – Amendment to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115 paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115. In May 2015, the FASB issued ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosure About Short-Duration Contracts Financial Services – Insurance periods beginning after December 15, 2016, and interim periods within annual periods beginning after December 15, 2017. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30) ew guidance. This Update is not expected to have a significant impact on the Corporation's financial statements. In April 2015, the FASB issued ASU 2015-04, Compensation – Retirement Benefits (Topic 715), application is permitted. This Update is not expected to have a significant impact on the Corporation's financial statements. In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) December 15, 2015, and interim periods in annual periods beginning after December 15, 2016. Early adoption is permitted for all entities. In April 2015, the FASB issued ASU 2015-06, Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions. Earnings Per Share Application of the Two-Class Method Under FASB Statement No. 128 to Master Limited Partnerships effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Earlier application is permitted. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017. In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). December 15, 2015. This Update is not expected to have a significant impact on the Corporation's financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40). annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. 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 . 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 compe nsation cost. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers interim periods within that reporting period. The Corporation is evaluating the effect of adopting this new accounting Update. |
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE | 12 Months Ended |
Dec. 31, 2015 | |
SECURITIES AVAILABLE FOR SALE [Abstract] | |
SECURITIES AVAILABLE FOR SALE | NOTE B - SECURITIES AVAILABLE FOR SALE (DOLLARS IN THOUSANDS) The amortized cost and fair value of securities held at December 31, 2015, and 2014, are as follows: Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ December 31, 2015 U.S. government agencies 29,829 3 (141 ) 29,691 U.S. agency mortgage-backed securities 42,288 39 (347 ) 41,980 U.S. agency collateralized mortgage obligations 48,140 125 (934 ) 47,331 Corporate bonds 63,825 29 (549 ) 63,305 Obligations of states and political subdivisions 100,208 1,780 (405 ) 101,583 Total debt securities 284,290 1,976 (2,376 ) 283,890 Marketable equity securities 5,515 23 (5 ) 5,533 Total securities available for sale 289,805 1,999 (2,381 ) 289,423 December 31, 2014 U.S. government agencies 46,577 110 (528 ) 46,159 U.S. agency mortgage-backed securities 37,946 138 (134 ) 37,950 U.S. agency collateralized mortgage obligations 48,690 55 (679 ) 48,066 Corporate bonds 65,274 145 (311 ) 65,108 Obligations of states and political subdivisions 90,628 2,961 (258 ) 93,331 Total debt securities 289,115 3,409 (1,910 ) 290,614 Marketable equity securities 5,189 19 - 5,208 Total securities available for sale 294,304 3,428 (1,910 ) 295,822 The amortized cost and fair value of debt securities available for sale at December 31, 2015, 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 18,827 18,650 Due after one year through five years 110,893 109,881 Due after five years through ten years 58,426 58,416 Due after ten years 96,144 96,943 Total debt securities 284,290 283,890 Securities available for sale with a par value of $ 60,295,000 75,013,000 65,137,000 78,269,000 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 SECURITIES AVAILABLE FOR SALE (DOLLARS IN THOUSANDS) Securities Available for Sale 2015 2014 2013 $ $ $ Proceeds from sales 154,384 155,363 116,347 Gross realized gains 2,934 3,815 4,209 Gross realized losses 94 684 821 SUMMARY OF GAINS AND LOSSES ON SECURITIES AVAILABLE FOR SALE (DOLLARS IN THOUSANDS) 2015 2014 2013 $ $ $ Gross realized gains 2,934 3,815 4,209 Gross realized losses 94 684 821 Impairment on securities - 22 171 Total gross realized losses 94 706 992 Net gains on securities 2,840 3,109 3,217 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 with total impairment of $ 22,000 two 171,000 Information pertaining to securities with gross unrealized losses at December 31, 2015, and December 31, 2014, 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 December 31, 2015 U.S. government agencies 24,968 (106 ) 1,965 (35 ) 26,933 (141 ) U.S. agency mortgage-backed securities 24,613 (235 ) 4,827 (112 ) 29,440 (347 ) U.S. agency collateralized mortgage obligations 26,563 (827 ) 4,652 (107 ) 31,215 (934 ) Corporate bonds 50,530 (532 ) 2,002 (17 ) 52,532 (549 ) Obligations of states & political subdivisions 21,913 (252 ) 7,435 (153 ) 29,348 (405 ) Total debt securities 148,587 (1,952 ) 20,881 (424 ) 169,468 (2,376 ) Marketable equity securities 142 (5 ) - - 142 (5 ) Total temporarily impaired securities 148,729 (1,957 ) 20,881 (424 ) 169,610 (2,381 ) As of December 31, 2014 U.S. government agencies 9,676 (30 ) 19,689 (498 ) 29,365 (528 ) U.S. agency mortgage-backed securities 7,412 (18 ) 5,412 (116 ) 12,824 (134 ) U.S. agency collateralized mortgage obligations 25,314 (403 ) 11,222 (276 ) 36,536 (679 ) Corporate bonds 33,413 (227 ) 9,855 (84 ) 43,268 (311 ) Obligations of states & political subdivisions 2,710 (29 ) 16,720 (229 ) 19,430 (258 ) Total temporarily impaired securities 78,525 (707 ) 62,898 (1,203 ) 141,423 (1,910 ) In the debt security portfolio, there are 116 The Corporation evaluates both equity and fixed income positions for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic and market concerns warrant such evaluation. Equity investments would be bank stocks held by the Corporation with no maturity date whereas the fixed income positions are bonds held by the Corportion with fixed maturity dates. 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 2015. The following table reflects the amortized cost, market value, and unrealized loss as of December 31, 2014, on the PCMO securities held which had impairment taken in the year. SECURITY IMPAIRMENT CHARGES December 31, 2014 (DOLLARS IN THOUSANDS) Amortized Market Unrealized Impairment Cost Value Loss Charge $ $ $ $ Private collateralized mortgage obligations - - - (22 ) The following table provides a cumulative roll forward of credit losses recognized in earnings for debt securities held: CREDIT LOSSES ON DEBT SECURITIES (DOLLARS IN THOUSANDS) For the year ended December 31, 2015 2014 2013 $ $ $ Beginning balance - 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 - 22 171 Sale of debt securities with previously recognized impairment - (1,170) - Ending balance - - 1,148 |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2015 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | NOTE C - LOANS AND ALLOWANCE FOR LOAN LOSSES The following table presents the Corporation's loan portfolio by category of loans for 2015 and 2014. LOAN PORTFOLIO (DOLLARS IN THOUSANDS) December 31, 2015 2014 $ $ Commercial real estate Commercial mortgages 87,613 95,914 Agriculture mortgages 158,321 140,322 Construction 14,966 7,387 Total commercial real estate 260,900 243,623 Consumer real estate (a) 1-4 family residential mortgages 133,538 123,395 Home equity loans 10,288 12,563 Home equity lines of credit 37,374 27,308 Total consumer real estate 181,200 163,266 Commercial and industrial Commercial and industrial 36,189 31,998 Tax-free loans 19,083 11,806 Agriculture loans 18,305 16,496 Total commercial and industrial 73,577 60,300 Consumer 3,892 3,517 Gross loans prior to deferred costs and allowance for loan losses 519,569 470,706 Less: Deferred loan costs, net (714) (462) Allowance for loan losses 7,078 7,141 Total net loans 513,205 464,027 (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $ 38,024,000 16,670,000 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 December 31, 2015 and 2014. The grading analysis estimates the capability of the borrower to repay the contractual obligations under the loan agreements as scheduled or at all. 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) December 31, 2015 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 81,865 154,507 13,822 35,416 19,083 17,860 322,553 Special Mention 511 623 - - - 125 1,259 Substandard 5,237 3,191 1,144 773 - 320 10,665 Doubtful - - - - - - - Loss - - - - - - - Total 87,613 158,321 14,966 36,189 19,083 18,305 334,477 December 31, 2014 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 82,478 135,298 5,350 31,006 11,806 16,255 282,193 Special Mention 2,649 3,237 - 29 - 29 5,944 Substandard 10,787 1,787 2,037 963 - 212 15,786 Doubtful - - - - - - - Loss - - - - - - - Total 95,914 140,322 7,387 31,998 11,806 16,496 303,923 For consumer loans, the Corporation evaluates credit quality based on whether the loan is considered performing or non-performing. CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) 1-4 Family Home Equity December 31, 2015 Residential Home Equity Lines of Mortgages Loans Credit Consumer Total Payment performance: $ $ $ $ $ Performing 133,220 10,278 37,327 3,889 184,714 Non-performing 318 10 47 3 378 Total 133,538 10,288 37,374 3,892 185,092 1-4 Family Home Equity December 31, 2014 Residential Home Equity Lines of Mortgages Loans Credit Consumer Total Payment performance: $ $ $ $ $ Performing 123,023 12,551 27,308 3,517 166,399 Non-performing 372 12 - - 384 Total 123,395 12,563 27,308 3,517 166,783 The following tables present an age analysis of the Corporation's past due loans, segregated by loan portfolio class, as of December 31, 2015 and 2014: AGING OF LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Greater Loans December 31, 2015 than 90 Receivable > 30-59 Days 60-89 Days Days Total Past Total Loans 90 Days and Past Due Past Due Past Due Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages - 601 - 601 87,012 87,613 - Agriculture mortgages - - - - 158,321 158,321 - Construction - - - - 14,966 14,966 - Consumer real estate 1-4 family residential mortgages 1,264 123 318 1,705 131,833 133,538 318 Home equity loans 27 59 10 96 10,192 10,288 10 Home equity lines of credit 35 - 47 82 37,292 37,374 47 Commercial and industrial Commercial and industrial 20 9 - 29 36,160 36,189 - Tax-free loans - - - - 19,083 19,083 - Agriculture loans - - - - 18,305 18,305 - Consumer 17 17 3 37 3,855 3,892 3 Total 1,363 809 378 2,550 517,019 519,569 378 Greater Loans December 31, 2014 than 90 Receivable > 30-59 Days 60-89 Days Days Total Past Total Loans 90 Days and Past Due Past Due Past Due Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages - 189 266 455 95,459 95,914 - Agriculture mortgages - - - - 140,322 140,322 - Construction - - - - 7,387 7,387 - Consumer real estate 1-4 family residential mortgages 665 349 372 1,386 122,009 123,395 372 Home equity loans 78 14 12 104 12,459 12,563 12 Home equity lines of credit 13 - - 13 27,295 27,308 - Commercial and industrial Commercial and industrial 21 73 - 94 31,904 31,998 - Tax-free loans - - - - 11,806 11,806 - Agriculture loans - - - - 16,496 16,496 - Consumer 23 1 - 24 3,493 3,517 - Total 800 626 650 2,076 468,630 470,706 384 As of December 31, 2015, 2014, and 2013, all of the Corporation's loans on non-accrual status were also considered impaired. Interest income on loans would have increased by approximately $ 23,000 39,000 82,000 The following table presents non-accrual loans by classes of the loan portfolio as of December 31: NON-ACCRUAL LOANS BY LOAN CLASS (DOLLARS IN THOUSANDS) 2015 2014 $ $ Commercial real estate Commercial mortgages 380 894 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 - 73 Tax-free loans - - Agriculture loans - - Consumer - - Total 380 967 Information with respect to impaired loans as of and for the years ended December 31 is as follows: IMPAIRED LOANS (DOLLARS IN THOUSANDS) 2015 2014 2013 $ $ $ Impaired loans Loan balances without a related allowance for loan losses 1,705 2,209 2,693 Loan balances with a related allowance for loan losses - 149 - Related allowance for loan losses - 1 - Average recorded balance of impaired loans 1,957 2,624 2,827 Interest income recognized on impaired loans 86 110 113 During 2015, 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 table summarizes information in regards to impaired loans by loan portfolio class as of December 31, 2015: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 380 952 - 544 - Agriculture mortgages 1,325 1,325 - 1,359 83 Construction - - - - - Total commercial real estate 1,705 2,277 - 1,903 83 Commercial and industrial Commercial and industrial - 49 - 54 3 Tax-free loans - - - - - Agriculture loans - - - - - Total commercial and industrial - 49 - 54 3 Total with no related allowance 1,705 2,326 - 1,957 86 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 380 952 - 544 - Agriculture mortgages 1,325 1,325 - 1,359 83 Construction - - - - - Total commercial real estate 1,705 2,277 - 1,903 83 Commercial and industrial Commercial and industrial - 49 - 54 3 Tax-free loans - - - - - Agriculture loans - - - - - Total commercial and industrial - 49 - 54 3 Total 1,705 2,326 - 1,957 86 The following table summarizes information in regards to impaired loans by loan portfolio class as of December 31, 2014: Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 745 931 - 931 - Agriculture mortgages 1,391 1,391 - 1,539 104 Construction - - - - - Total commercial real estate 2,136 2,322 - 2,470 104 Commercial and industrial Commercial and industrial 73 73 - 86 6 Tax-free loans - - - - - Agriculture loans - - - - - Total commercial and industrial 73 73 - 86 6 Total with no related allowance 2,209 2,395 - 2,556 110 With an allowance recorded: Commercial real estate Commercial mortgages 149 264 1 68 - Agriculture mortgages - - - - - Construction - - - - - Total commercial real estate 149 264 1 68 - Commercial and industrial Commercial and industrial - - - - - Tax-free loans - - - - - Agriculture loans - - - - - Total commercial and industrial - - - - - Total with a related allowance 149 264 1 68 - Total by loan class: Commercial real estate Commercial mortgages 894 1,195 1 999 - Agriculture mortgages 1,391 1,391 - 1,539 104 Construction - - - - - Total commercial real estate 2,285 2,586 1 2,538 104 Commercial and industrial Commercial and industrial 73 73 - 86 6 Tax-free loans - - - - - Agriculture loans - - - - - Total commercial and industrial 73 73 - 86 6 Total 2,358 2,659 1 2,624 110 The following table details activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2015: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Commercial Commercial Consumer and Real Estate Real Estate Industrial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance 3,834 1,367 1,301 66 573 7,141 Charge-offs (272 ) (28 ) (44 ) (18 ) - (362 ) Recoveries 34 - 112 3 - 149 Provision (credit) 235 64 (55 ) 11 (105 ) 150 Ending balance 3,831 1,403 1,314 62 468 7,078 Ending balance: individually evaluated for impairment - - - - - - Ending balance: collectively evaluated for impairment 3,831 1,403 1,314 62 468 7,078 Loans receivable: Ending balance 260,900 181,200 73,577 3,892 519,569 Ending balance: individually evaluated for impairment 1,705 - - - 1,705 Ending balance: collectively evaluated for impairment 259,195 181,200 73,577 3,892 517,864 The dollar amount of the allowance for all major loan segments did not change materially from December 31, 2014 to December 31, 2015, however the allowance as a percentage of loan balances did decline for all segments. 63,000 0.9 The Corporation recorded provision expense for the commercial real estate segment to compensate for increased charge-off activity in that segment. The following table details activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2014: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Commercial Commercial Consumer and Real Estate Real Estate Industrial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance 3,657 1,346 1,416 102 698 7,219 Charge-offs (204 ) - (12 ) (19 ) - (235 ) Recoveries - 5 201 1 - 207 Provision (credit) 381 16 (304 ) (18 ) (125 ) (50 ) Ending balance 3,834 1,367 1,301 66 573 7,141 Ending balance: individually evaluated for impairment 1 - - - - 1 Ending balance: collectively evaluated for impairment 3,833 1,367 1,301 66 573 7,140 Loans receivable: Ending balance 243,623 163,266 60,300 3,517 470,706 Ending balance: individually evaluated for impairment 2,285 - 73 - 2,358 Ending balance: collectively evaluated for impairment 241,338 163,266 60,227 3,517 468,348 In 2014, the Corporation allocated increased provisions to the commercial real estate segment due to increased charge-off activity in that segment. The following table details activity in the allowance for loan losses by portfolio segment for the year ended December 31, 2013: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Commercial Commercial Consumer and Real Estate Real Estate Industrial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance 3,575 1,510 1,640 61 730 7,516 Charge-offs - (84 ) (41 ) (22 ) - (147 ) Recoveries - - 74 1 - 75 Provision (credit) 82 (80 ) (257 ) 62 (32 ) (225 ) Ending balance 3,657 1,346 1,416 102 698 7,219 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 In 2013, the Corporation decreased the amount of the allowance for loan loss allocated to the commercial and industrial segment due to actual credit loss experience being less than previously estimated. The commercial real estate area experienced the most growth in the portfolio in 2013 and therefore received the highest amount of provision increase. Consumer loans are a very small part of the Corporation's loan portfolio, but they experienced a relatively large charge-off amount and significantly higher delinquency rate causing a large increase in this provision. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
PREMISES AND EQUIPMENT [Abstract] | |
PREMISES AND EQUIPMENT | NOTE D – (DOLLARS IN THOUSANDS) The major classes of the Corporation's December 31, 2015 2014 $ $ Land 3,687 3,687 Buildings and improvements 24,699 24,619 Furniture and equipment 12,423 11,926 Construction in process 163 144 Total 40,972 40,376 Less accumulated depreciation 19,276 17,929 Premises and equipment 21,696 22,447 Depreciation expense, which is included in operating expenses, amounted to $ 1,440,000 1,356,000 1,205,000 31, 2015, the construction in process consists primarily of costs associated with improvements being made to new or existing facilities expected to be completed in 2016. |
REGULATORY STOCK
REGULATORY STOCK | 12 Months Ended |
Dec. 31, 2015 | |
REGULATORY STOCK [Abstract] | |
REGULATORY STOCK | NOTE E – REGULATORY STOCK The Bank is a member of the Federal Home Loan Bank (FHLB) of Pittsburgh, which is one of 12 regional Federal Home Loan Banks. Each FHLB serves as a reserve or central bank for its members within its assigned region. As a member, the Bank is required to purchase and maintain stock in the FHLB in an amount equal to 0.10% of its asset value plus an additional 4% of its outstanding advances from the FHLB and mortgage partnership finance loans sold to the FHLB. At December 31, 2015, the Bank held $ 4,126,000 3,039,000 T he FHLB repurchases excess capital stock on a quarterly basis and pays a quarterly dividend on stock held by the Corporation. The FHLB's quarterly dividend yield was 5.00 3.00 The Corporation will continue to monitor the financial condition of the FHLB quarterly to assess its ability to continue to regularly repurchase excess capital stock and pay a quarterly dividend. The Corporation also owned $ 151,000 37,000 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2015 | |
DEPOSITS [Abstract] | |
DEPOSITS | NOTE F - DEPOSITS (DOLLARS IN THOUSANDS) Deposits by major classifications are summarized as follows: December 31, 2015 2014 $ $ Non-interest bearing demand 236,214 210,444 Interest-bearing demand 14,737 14,039 NOW accounts 77,180 72,951 Money market deposit accounts 82,507 69,442 Savings accounts 148,320 131,206 Time deposits under $250,000 165,939 179,053 Time deposits of $ or more 15,165 22,516 Total deposits 740,062 699,651 At December 31, 2015, the scheduled maturities of time deposits are as follows: 2016 95,182 2017 27,927 2018 19,994 2019 18,893 2020 19,108 Total 181,104 |
SHORT TERM BORROWINGS
SHORT TERM BORROWINGS | 12 Months Ended |
Dec. 31, 2015 | |
SHORT TERM BORROWINGS [Abstract] | |
SHORT TERM BORROWINGS | NOTE G - SHORT TERM BORROWINGS (DOLLARS IN THOUSANDS) Short-term borrowings consist of Federal funds purchased that mature one business day from the transaction date, overnight borrowings from the Federal Reserve Discount Window, and FHLB advances with a term of less than one year. A summary of short-term borrowings is as follows for the years ended December 31, 2015, 2014, and 2013: 2015 2014 2013 $ $ $ Total short-term borrowings outstanding at year end 8,736 - 3,900 Average interest rate at year end 0.29 % - 0.35 % Maximum outstanding at any month end 13,666 7,260 5,527 Average amount outstanding for the year 8,720 5,513 1,637 Weighted-average interest rate for the year 0.34 % 0.19 % 0.14 % As of December 31, 2015, the Corporation had approved unsecured Federal funds lines of $ 32 30.4 |
OTHER BORROWED FUNDS
OTHER BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2015 | |
OTHER BORROWED FUNDS [Abstract] | |
OTHER BORROWED FUNDS | NOTE H – OTHER BORROWED FUNDS (DOLLARS IN THOUSANDS) Maturities of other borrowings at December 31, 2015, and 2014, are summarized as follows: December 31, 2015 2014 Weighted- Weighted- Average Average Amount Rate Amount Rate $ % $ % FHLB fixed rate loans 2015 - - 3,000 2.21 2016 15,500 1.93 15,500 1.93 2017 15,000 1.26 15,000 1.26 2018 11,650 1.22 11,650 1.22 2019 6,767 1.68 4,650 1.80 2020 10,677 1.59 - - FHLB convertible loans 2015 - - 2,500 4.17 Repurchase agreements 2015 - - 10,000 4.37 Total other borrowings 59,594 1.53 62,300 2.12 As a member of the FHLB of Pittsburgh, the Corporation has access to significant credit facilities. Borrowings from FHLB are secured with a blanket security agreement and required investment in FHLB member bank stock. As part of the security agreement, the Corporation maintains unencumbered qualifying assets (principally 1-4 family residential mortgage loans) in an amount at least as much as the advances from the FHLB. Additionally, the Corporation's FHLB stock is pledged to secure these advances. The Corporation had an FHLB maximum borrowing capacity of $ 304.7 236.4 The terms of FHLB convertible borrowings allow the FHLB to convert the interest rate to an adjustable rate based on the three-month London Interbank Offering Rate (LIBOR). The rates on these instruments can change quarterly, once certain conditions or rate lockout periods are met. At the conversion date, the Corporation has the option of paying the borrowing off, or continuing to borrow under the new terms of the convertible borrowing. As of December 31, 2015, no convertible advances remained outstanding as the last one matured on July 27, 2015. As of December 31, 2015, the Corporation had no securities sold under an agreement to repurchase, but as of December 31, 2014, there were two securities sold under an agreement to repurchase, for $10.0 million, and as of December 31, 2013, there were three repurchase agreements for $15.0 million. REPURCHASE AGREEMENTS (DOLLARS IN THOUSANDS) 2015 2014 2013 $ $ $ Repurchase agreements outstanding at year end - 10,000 15,000 Average interest rate at year end - 4.37 % 4.50 % Maximum outstanding at any month end 10,000 15,000 15,000 Average amount outstanding for the year 5,863 12,904 15,000 Weighted-average interest rate for the year 4.74 % 4.52 % 4.50 % The Corporation uses repurchase agreements as a secondary source of funding after customer deposits as a way to mitigate interest rate risk and extend liability length. Management views repurchase agreements as a diversification of funding outside of the FHLB. However, post the financial crisis period repurchase agreements have not been offered to the extent they were before and they also have not been as competitive compared to other long-term funding options, hence no new repurchase agreements have been entered into since 2008. |
CAPITAL TRANSACTIONS
CAPITAL TRANSACTIONS | 12 Months Ended |
Dec. 31, 2015 | |
CAPITAL TRANSACTIONS [Abstract] | |
CAPITAL TRANSACTIONS | NOTE I – CAPITAL TRANSACTIONS On June 17, 2015, the Board of Directors of ENB Financial Corp announced the approval of a new plan to purchase, in open market and privately negotiated transactions, up to 140,000 shares of its outstanding common stock. As of December 31, 2015, a total of 12,135 shares were repurchased under this plan at a weighted-average cost per share of 32.73 Currently, the following three stock plans are in place: • a nondiscriminatory employee stock purchase plan (ESPP), which allows employees to purchase shares at a 10 • a dividend reinvestment plan (DRP), and; • a directors' stock purchase plan (DSPP). The ESPP was started in 2001 and is the largest of the three plans. There were 7,527 85,610 6,371 78,804 1,725 13,112 7,967 6,754 1,739 All plans issue shares from treasury shares acquired. During 2015, 15,623 20,033 32.16 644,000 |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2015 | |
RETIREMENT PLANS [Abstract] | |
RETIREMENT PLANS | NOTE J – RETIREMENT PLANS The Corporation has a defined contribution pension plan (the plan) covering all employees aged 21 or older who work 1,000 or greater hours in a calendar year and have completed at least one full year of employment. The Corporation's employer contribution into the pension plan is 5.0 5.0 5.0 118,500 117,000 For purposes of the defined contribution pension plan, covered compensation was limited to $ 265,000 260,000 255,000 497,000 $ 470,000 $ 422,000 The Corporation also provides an optional 401(K) plan, in which employees may elect to defer pre-tax salary dollars, subject to the maximum annual Internal Revenue Service contribution amounts. The contribution maximum for 2015 was $ 18,000 $ 17,500 24,000 23,000 2014 and 2013. 50 5.0 7.5 2.5 225,000 219,000 186,000 |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
DEFERRED COMPENSATION [Abstract] | |
DEFERRED COMPENSATION | NOTE K - DEFERRED COMPENSATION Prior to 1999, directors of the Corporation had the ability to defer their directors' fees into a directors' deferred compensation plan. Directors electing to defer their compensation signed a contract that allowed the Corporation to take out a life insurance policy on the director designed to fund the future deferred compensation obligation, which is paid out over a ten-year period at retirement age. A contract and life insurance policy was taken out for each period of pay deferred. The amount of deferred compensation to be paid to each director was actuarially determined based on the amount of life insurance the annual directors' fees were able to purchase. This amount varies for each director depending on age, general health, and the number of years until the director is entitled to begin receiving payments. The Corporation is the owner and beneficiary of all life insurance policies on the directors. At the time the directors' pay was deferred, the Corporation used the amount of the annual directors' fees to pay the premiums on the life insurance policies. The Corporation could continue to pay premiums after the deferment period, or could allow the policies to fund annual premiums through loans against the policy's cash surrender value. The Corporation has continued to pay the premiums on the life insurance policies and no loans exist on the policies. The life insurance policies had an aggregate face amount of $ 3,409,000 $ 6,399,000 4,516,000 $ 4,311,000 435,000 December $ 585,000 4.50 23,000 $ 29,000 or 2014 $ 36,000 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE L - INCOME TAXES Federal income tax expense as reported differs from the amount computed by applying the statutory Federal income tax rate to income before taxes. A reconciliation of the differences by amount and percent is as follows: FEDERAL INCOME TAX SUMMARY ) Year Ended December 31, 2015 2014 2013 $ % $ % $ % Income tax at statutory rate 2,811 34.0 2,937 34.0 3,132 34.0 Tax-exempt interest income (1,270 ) (15.4 ) (1,266 ) (14.7 ) ( 1,498 ) ( 16.3 ) Non-deductible interest expense 39 0.5 49 0.6 61 0.7 Bank-owned life insurance (247 ) (3.0 ) (218 ) (2.5 ) ( 217 ) ( 2.3 ) Other 25 0.3 44 0.5 23 0.2 Income tax expense 1,358 16.4 1,546 17.9 1,501 16.3 The ability to realize the benefit of deferred tax assets is dependent upon a number of factors, including the generation of future taxable income, the ability to carry back losses to recover taxes paid in previous years, the ability to offset capital losses with capital gains, the reversal of deferred tax liabilities, and certain tax planning strategies. valuation allowance of $13,000 has been established to offset in its entirety the tax benefits associated with certain impaired securities that management believes may not be realizable. The Corporation has a deferred tax asset for credits related to Alternative Minimum Taxes (AMT) of $ 1,085,000 $ 996,000 1,137,000 2013. U.S. generally accepted accounting principles prescribe a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. Significant components of income tax expense are as follows: (DOLLARS IN THOUSANDS) Year Ended December 31, 2015 2014 2013 $ $ $ Current tax expense 1,095 1,032 1,671 Deferred tax expense (benefit) 275 531 ( 174 Valuation allowance adjustment (12 ) (17) 4 Income tax expense 1,358 1,546 1,501 Components of the Corporation's net deferred tax position are as follows: (DOLLARS IN THOUSANDS) December 31, 2015 2014 2013 $ $ $ Deferred tax assets Allowance for loan losses 2,406 2,428 2,454 Net unrealized holding losses on securities available for sale 130 — 2,030 Deferred compensation reserve 148 199 248 Capital loss carryforward 13 25 42 Other than temporary impairment — — 106 Tax credit carryforward 1,085 996 1,137 Allowance for off-balance sheet extensions of credit 155 105 148 Interest on non-accrual loans 155 170 164 Other 7 6 305 Total deferred tax assets 4,099 3,929 6,634 Valuation allowance (13 ) (25 ) ( 42 ) Net deferred taxes 4,086 3,904 6,592 Deferred tax liabilities Premises and equipment (1,852 ) (1,536 ) ( 1,388 ) Net unrealized holding gains on securities available for sale — (516 ) — Discount on investment securities (1 ) (1 ) ( 61 ) Credit losses on impaired securities — — ( 228 ) Other (24 ) (13 ) — Total deferred tax liabilities (1,877 ) (2,066 ) ( 1,677 ) Net deferred tax assets (liabilities) 2,209 1,838 4,915 |
REGULATORY MATTERS AND RESTRICT
REGULATORY MATTERS AND RESTRICTIONS | 12 Months Ended |
Dec. 31, 2015 | |
REGULATORY MATTERS AND RESTRICTIONS [Abstract] | |
REGULATORY MATTERS AND RESTRICTIONS | NOTE M – REGULATORY MATTERS AND RESTRICTIONS The Corporation and the Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet the minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Corporation's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. As of December 31, 2015 and 2014, the Corporation and Bank were categorized as “well capitalized” under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution's category. The following chart details the Corporation's and the Bank's capital levels as of December 31, 2015 and December 31, 2014, compared to regulatory levels. CAPITAL LEVELS (DOLLARS IN THOUSANDS) To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provision $ % $ % $ % As of December 31, 2015 Total Capital to Risk-Weighted Assets Consolidated 102,891 15.9 51,638 8.0 64,548 10.0 Bank 101,791 15.8 51,596 8.0 64,495 10.0 Tier I Capital to Risk-Weighted Assets Consolidated 95,353 14.8 38,729 6.0 51,638 8.0 Bank 94,258 14.6 38,697 6.0 51,596 8.0 Common Equity Tier I Capital to Risk-Weighted Assets Consolidated 95,353 14.8 29,046 4.5 41,956 6.5 Bank 94,258 14.6 29,023 4.5 41,921 6.5 Tier I Capital to Average Assets Consolidated 95,353 10.8 35,358 4.0 44,198 5.0 Bank 94,258 10.7 35,342 4.0 44,178 5.0 As of December 31, 2014 Total Capital to Risk-Weighted Assets Consolidated 98,900 17.3 45,650 8.0 57,063 10.0 Bank 97,921 17.2 45,633 8.0 57,042 10.0 Tier I Capital to Risk-Weighted Assets Consolidated 91,755 16.1 22,825 4.0 34,238 6.0 Bank 90,787 15.9 22,817 4.0 34,225 6.0 Tier I Capital to Average Assets Consolidated 91,755 10.7 34,330 4.0 42,913 5.0 Bank 90,787 10.6 34,324 4.0 42,905 5.0 In addition to the capital guidelines, certain laws restrict the amount of dividends paid to stockholders in any given year. The approval of the OCC shall be required if the total of all dividends declared by the Corporation in any year shall exceed the total of its net profits for that year combined with retained net profits of the preceding two years. Under this restriction, the Corporation could declare dividends in 2016, without the approval of the OCC, of approximately $ 7.1 |
TRANSACTIONS WITH DIRECTORS AND
TRANSACTIONS WITH DIRECTORS AND OFFICERS | 12 Months Ended |
Dec. 31, 2015 | |
TRANSACTIONS WITH DIRECTORS AND OFFICERS [Abstract] | |
TRANSACTIONS WITH DIRECTORS AND OFFICERS | NOTE N – TRANSACTIONS WITH DIRECTORS AND OFFICERS The following table presents activity in the amounts due from directors, executive officers, immediate family, and affiliated companies. These transactions are made on the same terms and conditions, including interest rates and collateral requirements as those prevailing at the time for comparable transactions with others. An analysis of the activity with respect to such aggregate loans to related parties is shown below. LOANS TO INSIDERS (DOLLARS IN THOUSANDS) Actual $ Balance, January 1, 2014 10,432 Advances 1,555 Repayments (1,809 ) Other Changes (5,967 ) Balance, December 31, 2014 4,211 Balance, January 1, 2015 4,211 Advances 2,165 Repayments (2,113 ) Other Changes (15 ) Balance, December 31, 2015 4,248 In the Corporation's case, other changes in the table above for the year ended December 31, 2015, represents two one Deposits from the insiders totaled $ 5,282,000 4,907,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE O - COMMITMENTS AND CONTINGENCIES In 49.1 156.5 11.7 217.3 166.0 17.9 138.5 9.6 Firm commitments to extend credit and unused lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer's creditworthiness is evaluated on an individual basis. The amount of collateral obtained, if deemed necessary by the extension of credit, is based on management's credit evaluation of the customer. These commitments are supported by various types of collateral, where it is determined that collateral is required. Open letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. Most guarantees expire within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. While various assets of the customer act as collateral for these letters of credit, real estate is the primary collateral held for these potential obligations. |
FINANCIAL INSTRUMENTS WITH CONC
FINANCIAL INSTRUMENTS WITH CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2015 | |
FINANCIAL INSTRUMENTS WITH CONCENTRATIONS OF CREDIT RISK [Abstract] | |
FINANCIAL INSTRUMENTS WITH CONCENTRATIONS OF CREDIT RISK | NOTE P - FINANCIAL INSTRUMENTS WITH CONCENTRATIONS OF CREDIT RISK The Corporation determines concentrations of credit risk by reviewing loans by borrower, geographical area, and loan purpose. The amount of credit extended to a single borrower or group of borrowers is capped by the legal lending limit, which is defined as 15 75 15,269,000 11,451,000 14,688,000 11,016,000 Geographically, the primary lending area for the Corporation encompasses Lancaster, Lebanon, and Berks counties of Pennsylvania, with the vast majority of the loans made in Lancaster County. The ability of debtors to honor their loan agreements is impacted by the health of the local economy. The Corporation's immediate market area benefits from a diverse economy, which has resulted in a diverse loan portfolio. As a community bank, the largest amount of loans outstanding consists of personal mortgages, residential rental loans, and personal loans secured by real estate. Beyond personal lending, the Corporation's business and commercial lending includes loans for agricultural, construction, specialized manufacturing, service industries, many types of small businesses, and loans to governmental units and non-profit entities. Management evaluates concentrations of credit based on loan purpose on a quarterly basis. The Corporation's greatest concentration of loans by purpose is residential real estate, which comprises $ 181.2 34.9 50.2 260.9 30.5 29.8 85.3 16.4 40.4 7.8 broilers and other chicken production 32.3 6.2 73.6 19.1 3.7 To evaluate risk for the securities portfolio, the Corporation reviews both geographical concentration and credit ratings. . Based on fair market value, the Corporation held $ 18.1 million of obligations issued by municipalities within the state of Texas, which is 17.8 % of the municipal portfolio, and 6.4 % of total debt securities. The Corporation held $ 17.0 16.8 6.0 The Corporation also held $ 16.2 million of obligations of states and political subdivisions issued by municipalities located within the state of Illinoi 15.9 % of the municipal portfolio, and 5.7 % of total debt securities. Finally, the Corporation held $ 10.8 million of obligations of states and political subdivisions by municipalities in the state of California, which is 10.7 % of the municipal portfolio, and 3.8 % of total debt securities. Internal policy requires municipal bonds purchased to be rated at least A3 by Moody's and/or A- by Standard & (S&P) at the time of purchase. As of December 31, 2015, one municipal bond with a market value of $ 696,000 0.7 The Corporation held $63.8 million of corporate bonds based on amortized cost as of December 31, 2015. This total includes $ 12.7 51.1 18.0 As a total, the $ 63.8 22.4 20 portfolio outside of sub U.S agency debt 3 excluding sub U.S. agency debt 33.5 17.6 Within the corporate bond segment of the portfolio, management has preferred to invest in the banking, brokerage, and finance industry, where management is more comfortable analyzing and evaluating the credit risk of these firms. 40.0 62.7 25.5 14.5 14.5 25.5 11.6 13.9 The remaining $ 23.8 12.7 3.0 farm equipment companies 2.9 in insurance companies, $ 2.2 2.0 1.0 By internal policy, at time of purchase, all corporate bonds must carry a credit rating of at least A3 by Moody's or A- by S&P, and at all times corporate bonds are to be investment grade, which is defined as Baa3 for Moody's and BBB- for S&P, or above. Corporation |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE Q - FAIR VALUE MEASUREMENTS The following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized in measuring assets and liabilities at fair value. The three broad levels defined by U.S. generally accepted accounting principles 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: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data when available. The following table presents the assets reported on the Consolidated Balance Sheets at their fair value as of December 31, 2015, by level within the fair value hierarchy. ASSETS REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 31, 2015 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 29,691 — 29,691 U.S. agency mortgage-backed securities — 41,980 — 41,980 U. S. agency collateralized mortgage obligations — 47,331 — 47,331 Corporate bonds — 63,305 — 63,305 Obligations of states and political subdivisions — 101,583 — 101,583 Marketable equity securities 5,533 — — 5,533 Total securities 5,533 283,890 — 289,423 On December 31, 2015, 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 December 31, 2015, the CRA fund investments had a $ 5,000,000 515,000 533,000 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. The following table presents the assets reported on the Consolidated Balance Sheets at their fair value as of December 31, 2014, by level within the fair value hierarchy. ASSETS REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 31, 2014 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 46,159 — 46,159 U.S. agency mortgage-backed securities — 37,950 — 37,950 U. S. agency collateralized mortgage obligations — 48,066 — 48,066 Corporate bonds — 65,108 — 65,108 Obligations of states and political subdivisions — 93,331 — 93,331 Marketable equity securities 5,208 — — 5,208 Total securities 5,208 290,614 — 295,822 On December 31, 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 December 31, 2014, the CRA fund investments had a $ 5,000,000 189,000 208,000 The following table presents the assets measured on a nonrecurring basis on the Consolidated Balance Sheets at their fair value as of December 31, 2015, and December 31, 2014, by level within the fair value hierarchy. ASSETS MEASURED ON A NONRECURRING BASIS (DOLLARS IN THOUSANDS) December 31, 2015 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans — — 1,705 1,705 OREO — — — — Total — — 1,705 1,705 December 31, 2014 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans — — 2,357 2,357 OREO — — 69 69 Total — — 2,426 2,426 The Corporation had a total of $ 1,705,000 of impaired loans as of December 31, 2015, with no specific alloocation against these loans 2,358,000 1,000 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. 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) December 31, 2015 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 1,705 Appraisal of collateral Appraisal adjustments (2) 0 -20 -20 Liquidation expenses (2) 0 -10 -10 December 31, 2014 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 2,357 Appraisal of collateral Appraisal adjustments (2) 0 -20 -20 Liquidation expenses (2) 0 -10 -10 OREO 69 Appraisal of collateral Appraisal adjustments (2) -40 Liquidation expenses (2) -1 (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes 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. |
DISCLOSURES ABOUT FAIR VALUE OF
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE R - DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS The following methods and assumptions were used to estimate the fair value of each class of financial instruments: 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. 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. 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. Accrued Interest Receivable The carrying amount of accrued interest receivable 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. Deposits The fair value of non-interest bearing demand deposit accounts and interest bearing demand deposit and savings 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, which are currently being 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 O. The carrying amounts and estimated fair values of the Corporation's financial instruments at December 31, 2015, are summarized as follows: FAIR VALUE OF FINANCIAL INSTRUMENTS (DOLLARS IN THOUSANDS) December 31, 2015 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level I) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 44,227 44,227 44,227 — — Securities available for sale 289,423 289,423 5,533 283,890 — Regulatory stock 4,314 4,314 4,314 — — Loans held for sale 1,126 1,126 1,126 — — Loans, net of allowance 513,205 512,481 — — 512,481 Accrued interest receivable 3,600 3,600 3,600 — — Bank owned life insurance 23,869 23,869 23,869 — — Financial Liabilities: Demand deposits 236,214 236,214 236,214 — — Interest-bearing demand deposits 14,737 14,737 14,737 — — NOW accounts 77,180 77,180 77,180 — — Money market deposit accounts 82,507 82,507 82,507 — — Savings accounts 148,320 148,320 148,320 — — Time deposits 181,104 182,887 — — 182,887 Total deposits 740,062 741,845 558,958 — 182,887 Short-term borrowings 8,736 8,736 8,736 — — Long-term debt 59,594 59,805 — — 59,805 Accrued interest payable 456 456 456 — — The carrying amounts and estimated fair values of the Corporation's financial instruments at December 31, 2014, are summarized as follows: FAIR VALUE OF FINANCIAL INSTRUMENTS (DOLLARS IN THOUSANDS) December 31, 2014 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level I) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 43,412 43,412 43,412 — — Securities available for sale 295,822 295,822 5,208 290,614 — Regulatory stock 3,227 3,227 3,227 — — Loans held for sale 506 506 506 — — Loans, net of allowance 464,027 463,197 — — 463,197 Accrued interest receivable 3,706 3,706 3,706 — — Bank owned life insurance 20,603 20,603 20,603 — — Financial Liabilities: Demand deposits 210,444 210,444 210,444 — — Interest-bearing demand deposits 14,039 14,039 14,039 — — NOW accounts 72,951 72,951 72,951 — — Money market deposit accounts 69,442 69,442 69,442 — — Savings accounts 131,206 131,206 131,206 — — Time deposits 201,569 203,787 — — 203,787 Total deposits 699,651 701,869 498,082 — 203,787 Long-term debt 62,300 63,058 — — 63,058 Accrued interest payable 586 586 586 — — |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2015 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE S – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The activity in accumulated other comprehensive income (loss) for the years ended December 31, 2015 and 2014 is as follows: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (1) (2) (DOLLARS IN THOUSANDS) Unrealized Gains (Losses) on Securities Available-for-Sale $ Balance at January 1, 2015 1,002 Other comprehensive income (loss) before reclassifications 621 Amount reclassified from accumulated other comprehensive income (loss) (1,875 ) Period change (1,254 ) Balance at December 31, 2015 (252 ) Balance at January 1, 2014 (3,940 ) Other comprehensive income (loss) before reclassifications 6,993 Amount reclassified into accumulated other comprehensive income (loss) (2,051 ) Period change 4,942 Balance at December 31, 2014 1,002 (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 Year Ended December 31, Affected Line Item 2015 2014 in the Statements of $ $ Income Securities available-for-sale: Net securities gains reclassified into earnings 2,840 3,131 Gains on securities transactions, net Related income tax expense (965 ) (1,065 ) Provision for federal income taxes Net effect on accumulated other comprehensive income for the period 1,875 2,066 Net impairment losses reclassified into earnings - (22 ) Impairment losses on securities Related income tax expense - 7 Provision for federal income taxes Net effect on accumulated other comprehensive income (loss) for the period - (15 ) Total reclassifications for the period 1,875 2,051 (1) Amounts in parentheses indicate debits. |
CONDENSED PARENT ONLY DATA
CONDENSED PARENT ONLY DATA | 12 Months Ended |
Dec. 31, 2015 | |
CONDENSED PARENT ONLY DATA [Abstract] | |
CONDENSED PARENT ONLY DATA | NOTE T – CONDENSED PARENT ONLY DATA Condensed Balance Sheets (Parent Company Only) (DOLLARS IN THOUSANDS) December 31, 2015 2014 $ $ Assets Cash 509 702 Securities available for sale (at fair value) 533 208 Equity in bank subsidiary 93,994 91,786 Other assets 66 71 Total assets 95,102 92,767 Stockholders' Equity Capital stock 574 574 Capital surplus 4,395 4,375 Retained earnings 91,029 87,200 Unrealized gain (loss) on AFS securities (252) 1,002 Treasury stock (644 ) ( 384 ) Total stockholders' equity 95,102 92,767 Condensed Statements of Comprehensive Income (DOLLARS IN THOUSANDS) Year Ended December 31, 2015 2014 2013 $ $ $ Income Dividend income - investment securities 16 9 7 Gains on securities transactions 25 49 25 Dividend income 3,581 3,556 2,966 Undistributed earnings of bank subsidiary 3,462 3,621 4,855 Total income 7,084 7,235 7,853 Expense Shareholder expenses 118 129 131 Other expenses 56 14 12 Total expense 174 143 143 Net Income 6,910 7,092 7,710 Comprehensive Income (Loss) 5,656 12,034 ( 2,893 ) Condensed Statements of Cash Flows (DOLLARS IN THOUSANDS) Year Ended December 31, 2015 2014 2013 Cash Flows from Operating Activities: $ $ $ Net Income 6,910 7,092 7,710 Equity in undistributed earnings of subsidiaries (3,462 ) ( 3,621 ) ( 4,855 ) Gains on securities transactions, net (25 ) (49 ) (25 ) Net change in other assets 5 (3 ) 4 Net cash provided by operating activities 3,428 3,419 2,834 Cash Flows from Investing Activities: Proceeds from sales of securities available for sale 167 338 120 Purchases of securities available for sale (467 ) ( 327 ) (246 ) Net cash provided by (used for) investing activities (300 ) 11 (126 ) Cash Flows from Financing Activities: Proceeds from issuance of treasury stock 512 499 477 Payment to repurchase common stock (752 ) ( 485 ) ( 357 ) Dividends paid (3,081 ) ( 3,057 ) ( 2,966 ) Net cash used for financing activities (3,321 ) ( 3,043 ) ( 2,846 ) Cash and Cash Equivalents: Net change in cash and cash equivalents (193 ) 387 (138 ) Cash and cash equivalents at beginning of period 702 315 453 Cash and cash equivalents at end of period 509 702 315 |
SUMMARY OF QUARTERLY FINANCIAL
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE U - SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) The unaudited quarterly results of operations for the years ended 2015, 2014, and 2013 are as follows: 2015 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $ $ $ $ Interest income 6,872 6,718 6,761 6,491 Interest expense 1,014 951 928 851 Net interest income 5,858 5,767 5,833 5,640 Less provision (credit) for loan losses 200 100 (150 ) - Net interest income after provision (credit) for loan losses 5,658 5,667 5,983 5,640 Other income 2,201 2,394 2,342 3,118 Operating expenses: Salaries and employee benefits 3,702 3,674 3,679 3,741 Occupancy and equipment expenses 822 822 791 783 Other operating expenses 1,626 1,691 1,620 1,784 Total operating expenses 6,150 6,187 6,090 6,308 Income before income taxes 1,709 1,874 2,235 2,450 Provision for Federal income taxes 243 278 382 455 Net income 1,466 1,596 1,853 1,995 FINANCIAL RATIOS Per share data: Net income 0.51 0.56 0.65 0.70 Cash dividends paid 0.27 0.27 0.27 0.27 2014 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $ $ $ $ Interest income 6,872 6,825 6,696 6,744 Interest expense 1,217 1,217 1,155 1,087 Net interest income 5,655 5,608 5,541 5,657 Less provision (credit) for loan losses (200 ) (100 ) — 250 Net interest income after provision (credit) for loan losses 5,855 5,708 5,541 5,407 Other income 2,180 2,168 2,275 2,925 Operating expenses: Salaries and employee benefits 3,430 3,481 3,517 3,515 Occupancy and equipment expenses 776 727 763 794 Other operating expenses 1,592 1,581 1,487 1,758 Total operating expenses 5,798 5,789 5,767 6,067 Income before income taxes 2,237 2,087 2,049 2,265 Provision for Federal income taxes 399 347 337 463 Net income 1,838 1,740 1,712 1,802 FINANCIAL RATIOS Per share data: Net income 0.64 0.61 0.60 0.63 Cash dividends paid 0.26 0.27 0.27 0.27 2013 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $ $ $ $ Interest income 6,653 6,609 6,745 6,899 Interest expense 1,430 1,348 1,322 1,282 Net interest income 5,223 5,261 5,423 5,617 Less credit for loan losses (50 ) (100 ) — (75 ) Net interest income after credit for loan losses 5,273 5,361 5,423 5,692 Other income 2,503 2,229 1,939 2,726 Operating expenses: Salaries and employee benefits 3,168 3,184 3,193 3,368 Occupancy and equipment expenses 644 665 710 693 Other operating expenses 1,564 1,627 1,444 1,675 Total operating expenses 5,376 5,476 5,347 5,736 Income before income taxes 2,400 2,114 2,015 2,682 Provision for Federal income taxes 392 292 274 543 Net income 2,008 1,822 1,741 2,139 FINANCIAL RATIOS Per share data: Net income 0.70 0.64 0.61 0.75 Cash dividends paid 0.26 0.26 0.26 0.26 |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of ENB Financial Corp and its subsidiary, Ephrata National Bank, (collectively “the Corporation”) conform to U.S. generally accepted accounting principles (GAAP). The preparation of these statements requires that management make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Material estimates of the Corporation, including the allowance for loan losses, the fair market value of financial instruments, and deferred tax assets or liabilities, are evaluated regularly by management. Actual results could differ from the reported estimates given different conditions or assumptions. The accounting and reporting policies followed by the Corporation conform with U.S. GAAP and to general practices within the banking industry. All significant intercompany transactions have been eliminated in consolidation. The following is a summary of the more significant policies. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents are identified as cash and due from banks and include cash on hand, collection items, amounts due from banks, and interest bearing deposits in other banks with maturities of less than 90 days. |
Securities Available for Sale and Other Than Temporary Impairment | Securities Available for Sale The Corporation classifies its entire portfolio of debt and equity securities as available for sale securities, which the Corporation reports at fair value. Any unrealized valuation gains or losses in the portfolio are reported as a separate component of stockholders' equity, net of deferred income taxes. The constant yield method is used for the amortization of premiums and the accretion of discounts for all of the Corporation's securities with the exception of collateralized mortgage obligations (CMOs) and mortgage backed securities (MBS). The constant yield method maintains a stable yield on the instrument through its maturity. For CMOs and MBS, a two-step/proration method is used for amortization and accretion. The first step is a proration based on the current pay down. This component ensures that the book price stays level with par. The second step amortizes or accretes the remaining premium or discount to the calculated final amortization or accretion date based on the current three-month constant prepayment rates. Net gains or losses realized on sales or calls of securities are reported as gains or losses on security transactions during the year of sale, using the specific identification method. Other Than Temporary Impairment (“OTTI”) Management monitors all of the Corporation's securities for OTTI on a monthly basis and determines whether any impairment should be recorded. A number of factors are considered in determining whether a security is impaired, including, but not limited to, the following: • Percentage of unrealized losses, • Period of time the security has had unrealized losses, • Type of security, • Maturity date of the instrument if a debt instrument, • The intent to sell the security or whether it is more likely than not that the Corporation would be required to sell the security before its anticipated recovery in market value, • Amount of projected credit losses based on current cash flow analysis, default and severity rates, and • Market dynamics impacting the market for and liquidity of the security. Management will more closely evaluate those securities that have unrealized losses of 10% or more and have had unrealized losses for more than twelve months. If management determines that the declines in value of the security are not temporary, or if management does not have the ability to hold the security until maturity, which is the case with equity securities, then management will record impairment on the security. For equity securities, typically the amount of impairment is the difference between the security's book value and current fair market value determined by obtaining independent market pricing. For debt securities evaluated for impairment, management will determine what portion of the unrealized valuation loss is attributed to projected or known loss of principal, and what portion is attributed to market pricing not reflective of the true value of the security, based on current cash flow analysis. Management will generally record impairment equivalent to the projected or known loss of principal, known as the credit loss. The other portion of the fair market value loss is attributed to market factors and it is management's opinion that these fair value losses are temporary and not permanent. All impairment is recorded as a loss on securities and is included in the Corporation's Consolidated Statements of Income. |
Loans | Loans Held for Investment Loans receivable, that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, generally are reported at the outstanding principal balances, reduced by any charge-offs and net of any deferred loan origination fees or costs. Net loan origination fees and costs are deferred and recognized as an adjustment of yield over the contractual life of the loan. Interest accrues daily on outstanding loan balances. Generally, the accrual of interest discontinues when the ability to collect the loan becomes doubtful or when a loan becomes more than 90 days past due as to principal and interest. These loans are referred to as non-accrual loans. Management may elect to continue the accrual of interest based on the expectation of future payments and/or the sufficiency of the underlying collateral. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale on the secondary market are carried at the lower of cost or fair value in the aggregate. In general, fixed-rate residential mortgage loans originated by the Corporation and held for sale are carried in the aggregate at the lower of cost or market. The Corporation originates loans for immediate sale with servicing retained and servicing released to several investors. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is maintained at a level considered by management to be adequate to provide for known and inherent risks in the loan portfolio at the Consolidated Balance Sheets dates. The monthly provision or credit for loan losses is an expense or a reduction of expense which increases or decreases the allowance, and charge-offs, net of recoveries, decrease the allowance. The Corporation performs ongoing credit reviews of the loan portfolio and considers current economic conditions, historical loan loss experience, and other factors in determining the adequacy of the reserve balance. Loans determined to be uncollectible are charged to the allowance during the period in which such determination is made. In calculating the allowance, management will begin by compiling the balance of loans by credit quality for each loan segment in order that allocations can be made in aggregate based on historic losses and qualitative factors. Prior to calculating these aggregate allocations, management will individually evaluate commercial and commercial real estate loans for impairment. A loan is impaired when it is probable that a creditor will be unable to collect all principal and interest due according to the contractual terms of the loan agreement. All other loan types such as residential mortgages, home equity loans and lines of credit, and all other consumer loans, are not individually evaluated for impairment and are therefore allocated for in aggregate. These loans are considered to be large groups of smaller-balance homogenous loans and are measured for impairment collectively. Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis, taking into consideration all circumstances concerning the loan, the creditworthiness and payment history of the borrower, the length of the payment delay, and the amount of shortfall in relation to the principal and interest owed. For loans deemed to be impaired, management will provide a specific allocation. This loan balance is then subtracted from the total loan balances being allocated for in the aggregate. The remaining balances, along with the full loan balances for the other loan types are then multiplied by an adjusted loss ratio, which is the sum of both the historical loss ratio and a qualitative factor adjustment. Generally both the historical loss ratio and the qualitative factor adjustment will increase as the credit rating of the loan deteriorates. The credit ratings begin with unclassified loans, which represent the best internal credit rating, also referred to as a “pass” credit and then continue with declining grades of special mention, substandard, doubtful, and loss. Special mention loans are no longer deemed to be a “pass” credit and require additional management attention. They are essentially placed on “watched” status and attempts are made to improve the credit to an unclassified status. If the credit would deteriorate further it would then be a substandard credit, which for regulatory purposes, is deemed to be a classified loan. Doubtful and loss credit grades represent further credit deterioration and are also considered classified loans. For each loan type, all of these credit rating categories are broken out with adjusted loss ratios. The loan balance is then multiplied by the adjusted loss ratio to produce the required allowance. The allowances are totaled and added to any specific allocations on impaired loans to arrive at the total allowance for loan losses for the Corporation. Management tracks and assigns a historical loss percentage for each loan rating category within each loan type. A rolling three-year historical loss ratio, calculated on a quarterly basis, with a 60%, 30%, and 10% weighting for the past three years is used. In this manner the historical loss percentage is heavily weighted to the current loss environment, but has sufficient weighting assigned to prior periods to avoid unnecessary volatile fluctuations based on just one period's data. Management currently utilizes nine qualitative factors that are adjusted based on changes in the lending environment and economic conditions. The qualitative factors include the following: • levels of and trends in delinquencies, non-accruals, and charge-offs, • trends in the nature and volume of the loan portfolio • changes in lending policies and procedures, • experience, ability, and depth of lending personnel and management oversight • national and local economic trends, • concentrations of credit, • external factors such as competition, legal, and regulatory requirements, • changes in the quality of loan review and Board oversight, • changes in the value of underlying collateral. The number of qualitative factors can change. Factors can be added for new risks or taken away if the risk no longer applies. Each loan type will have its own risk profile and management will evaluate and adjust each qualitative factor for each loan type quarterly, if necessary. For example, if one area of the loan portfolio is experiencing sharp increases in growth, it is likely the qualitative factor for trends in the loan portfolio would be increased for that loan type. As levels of delinquencies and non-accrual loans decline for any segment of the loan portfolio it is likely that factor would be reduced. In terms of the Corporation's loan portfolio, the commercial and industrial loans and commercial real estate loans are deemed to have more risk than the consumer real estate loans and other consumer loans in the portfolio. The commercial loans not secured by real estate are highly dependent on their financial condition and therefore are more dependent on economic conditions. The commercial loans secured by real estate are also dependent on economic conditions but generally have stronger forms of collateral. More recently, commercial real estate has been negatively impacted by devaluation so these commercial loans carry a higher qualitative factor for changes in the value of collateral. The commercial loans and commercial real estate loans have historically been responsible for the majority of the Corporation's delinquencies, non-accrual loans, and charge-offs, so both of these categories carry higher qualitative factors than consumer real estate loans and other consumer loans. The Corporation has historically experienced very low levels of consumer real estate and consumer loan charge-offs so these qualitative factors are set lower than the commercial real estate and commercial and industrial loans. More recently, the agriculture segment of the loan portfolio is growing faster than all other segments and, therefore, the qualitative factors for trends and collateral were increased in this area due to more volume and increased exposure to potential loss. |
Impaired and Non-Accrual Loans | Impaired and Non-Accrual Loans The definition of “impaired loans” is not the same as the definition of “non-accrual loans,” although the two categories overlap. Generally, a non-accrual loan will always be considered impaired due to payment delinquency or uncertain collection, but there are cases where an impaired loan is not considered non-accrual. The primary factors considered by management in determining impairment include payment status and collateral value, but could also include debt service coverage, financial health of the business, and other external factors that could impact the ability of the borrower to fully repay the loan. The amount of impairment for these types of loans is determined by the difference between the present value of the expected cash flows related to the loan using the original interest rate and its recorded value or, as a practical expedient in the case of collateral-dependent loans, the difference between the fair value of the collateral and the recorded amount of the loan. When foreclosure is probable, impairment is measured based on the fair value of the collateral on a discounted basis, relative to the loan amount. Management will place a business or commercial loan on non-accrual status when it is determined that the loan is impaired, or when the loan is 90 days past due with a history of prolonged periods of delinquency. These customers will generally be placed on non-accrual status at the end of each quarter. Consumer loans over 90 days delinquent are generally charged off or, in the case of larger residential real estate loans, they would be placed on non-accrual status as the Corporation seeks to bring the customer current or pursue foreclosure options. When the borrower is on non-accrual, the Corporation will reverse any accrued interest on the books and will discontinue recognizing any interest income until the borrower is placed back on accrual status or fully pays off the loan balance plus any accrued interest. Payments received by the customer while the loan is on non-accrual are fully applied against principal. The Corporation maintains records of the full amount of interest that is owed by the borrower. A non-accrual loan will generally only be placed back on accrual status after the borrower has become current and has demonstrated six consecutive months of non-delinquency. |
Allowance for Off-Balance Sheet Extensions of Credit | Allowance for Off-Balance Sheet Extensions of Credit The Corporation maintains an allowance for off-balance sheet extensions of credit which would include any unadvanced amount on lines of credit and any letters of credit provided to borrowers. The allowance is carried as a liability and is included in other liabilities on the Corporation's Consolidated Balance Sheets. The liability was $ 455,000 310,000 of credit increases, this provision will also increase. Management follows the same methodology as the allowance for loan losses when calculating the allowance for off-balance sheet extensions of credit, with the exception of multiplying the unadvanced total by a high/low balance variance to arrive at the expected unadvanced portion that could be drawn upon at any time, or the amount at risk. The unadvanced amounts for each loan segment are broken down by credit classification. A historical loss ratio and qualitative factor are calculated for each credit classification by loan type. The historical loss ratio and qualitative factor are combined to produce an adjusted loss ratio which is multiplied by the amount at risk for each credit classification within each loan segment to arrive at an allocation. The allocations are summed to arrive at the total allowance for off-balance sheet extensions of credit. |
Other Real Estate Owned (OREO) | Other Real Estate Owned (OREO) OREO represents properties acquired through customer loan defaults. These properties are recorded at the lower of cost or fair value less projected disposal costs at acquisition date. Fair value is determined by current appraisals. Costs associated with holding OREO are charged to operational expense. OREO is a component of other assets on the Corporation's Consolidated Balance Sheets. The Corporation had no OREO as of December 31, 2015, and $ 69,000 |
Mortgage Servicing Rights (MSRs) | Mortgage Servicing Rights (MSRs) The Corporation has agreements for the express purpose of selling residential mortgage loans on the secondary market, referred to as mortgage servicing rights. The Corporation maintains all servicing rights for loans currently sold through FHLB and Fannie Mae. The Corporation had $ 240,000 96,000 Management expects MSRs to continue to grow as a result of the recently expanded mortgage program. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are carried at cost, less accumulated depreciation. Book depreciation is computed using straight-line methods over the estimated useful lives of generally fifteen thirty-nine four ten |
Transfer of Assets | Transfer of Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Bank-Owned Life Insurance (BOLI) | Bank-Owned Life Insurance (BOLI) BOLI is carried by the Corporation at the cash surrender value of the underlying policies. Income earned on the policies is based on any increase in cash surrender value less the cost of the insurance, which varies according to age and health of the insured. The life insurance policies owned by the Corporation had a cash surrender value of $ 23,869,000 20,603,000 Outside of normal appreciation of the cash surrender value, the Corporation made an additional $ 2.5 3,266,000 15.9 |
Advertising Costs | Advertising Costs The Corporation expenses advertising costs as incurred. Advertising costs for the years ended December 31, 2015, 2014, and 2013, were $ 552,000 474,000 486,000 |
Income Taxes | Income Taxes: An asset and liability approach is followed for financial accounting and reporting for income taxes. Accordingly, a net deferred tax asset or liability is recorded in the consolidated financial statements for the tax effects of temporary differences, which are items of income and expense reported in different periods for income tax and financial reporting purposes. Deferred tax expense is determined by the change in the assets or liabilities related to deferred income taxes. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. |
Earnings per Share | Earnings per Share The Corporation currently maintains a simple capital structure with no stock option plans that would have a dilutive effect on earnings per share. Earnings per share are calculated by dividing net income by the weighted-average number of shares outstanding for the periods. |
Comprehensive Income (Loss). | Comprehensive Income (Loss) The Corporation is required to present comprehensive income (loss) in a full set of general-purpose consolidated financial statements for all periods presented. Other comprehensive income (loss) consists of unrealized holding gains and losses on the available for sale securities portfolio. |
Segment Disclosure | Segment Disclosure U.S. generally accepted accounting principles establish standards for the manner in which public business enterprises report information about segments in the annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports issued to shareholders. It also establishes standards for related disclosures regarding financial products and services, geographic areas, and major customers. The Corporation has only one operating segment consisting of its banking and fiduciary operations. |
Pension Plans | Pension Plans The Corporation has a noncontributory defined contribution pension plan covering substantially all employees. The Corporation contributes 5.0 5.0 The Corporation also provides an optional 401(K) plan, in which employees may elect to defer pre-tax salary dollars, subject to the maximum annual Internal Revenue Service contribution amounts. The Corporation will match 50 5 2.5 |
Trust Assets and Income | Trust Assets and Income Assets held by ENB's Money Management Group in a fiduciary or agency capacity for customers are not included in the Corporation's Consolidated Balance Sheets since these items are not assets of the Corporation. In accordance with banking industry practice, trust income is recognized on a cash basis, as such income does not differ significantly from amounts that would be recognized on an accrual basis. Trust income is reported in the Corporation's Consolidated Statements of Income under other income. |
Reclassification of Comparative Amounts | Reclassification of Comparative Amounts Certain comparative amounts for the prior year have been reclassified to conform to current-year classifications. Such reclassifications had no effect on net income or stockholders' equity. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): years beginning after December 15, 2017, including interim periods within those fiscal years. The Corporation is currently evaluating the impact the adoption of the standard will have on the Company's financial position or results of operations. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ds presented. This Update is not expected to have a significant impact on the Corporation's financial statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). In August 2015, the FASB issued ASU 2015-15, Interest – Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. In August 2015, the FASB issued ASU 2015-14, Revenue from Contract with Customers Topic 606 beginning after December 15, 2019. In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements issuance of this Update. In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) is permitted. This Update is not expected to have a significant impact on the Corporation's financial statements. In May 2015, the FASB issued ASU 2015-08 , Business Combinations – Pushdown Accounting – Amendment to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115 paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115. In May 2015, the FASB issued ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosure About Short-Duration Contracts Financial Services – Insurance periods beginning after December 15, 2016, and interim periods within annual periods beginning after December 15, 2017. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30) ew guidance. This Update is not expected to have a significant impact on the Corporation's financial statements. In April 2015, the FASB issued ASU 2015-04, Compensation – Retirement Benefits (Topic 715), application is permitted. This Update is not expected to have a significant impact on the Corporation's financial statements. In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) December 15, 2015, and interim periods in annual periods beginning after December 15, 2016. Early adoption is permitted for all entities. In April 2015, the FASB issued ASU 2015-06, Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions. Earnings Per Share Application of the Two-Class Method Under FASB Statement No. 128 to Master Limited Partnerships effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Earlier application is permitted. In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017. In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). December 15, 2015. This Update is not expected to have a significant impact on the Corporation's financial statements. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40). annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. 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 . 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 compe nsation cost. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers interim periods within that reporting period. The Corporation is evaluating the effect of adopting this new accounting Update. |
SECURITIES AVAILABLE FOR SALE (
SECURITIES AVAILABLE FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SECURITIES AVAILABLE FOR SALE [Abstract] | |
Schedule of amortized cost and fair value of securities | Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ December 31, 2015 U.S. government agencies 29,829 3 (141 ) 29,691 U.S. agency mortgage-backed securities 42,288 39 (347 ) 41,980 U.S. agency collateralized mortgage obligations 48,140 125 (934 ) 47,331 Corporate bonds 63,825 29 (549 ) 63,305 Obligations of states and political subdivisions 100,208 1,780 (405 ) 101,583 Total debt securities 284,290 1,976 (2,376 ) 283,890 Marketable equity securities 5,515 23 (5 ) 5,533 Total securities available for sale 289,805 1,999 (2,381 ) 289,423 December 31, 2014 U.S. government agencies 46,577 110 (528 ) 46,159 U.S. agency mortgage-backed securities 37,946 138 (134 ) 37,950 U.S. agency collateralized mortgage obligations 48,690 55 (679 ) 48,066 Corporate bonds 65,274 145 (311 ) 65,108 Obligations of states and political subdivisions 90,628 2,961 (258 ) 93,331 Total debt securities 289,115 3,409 (1,910 ) 290,614 Marketable equity securities 5,189 19 - 5,208 Total securities available for sale 294,304 3,428 (1,910 ) 295,822 |
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 18,827 18,650 Due after one year through five years 110,893 109,881 Due after five years through ten years 58,426 58,416 Due after ten years 96,144 96,943 Total debt securities 284,290 283,890 |
Schedule of proceeds and gains and losses on securities available for sale | PROCEEDS FROM SALES OF SECURITIES AVAILABLE FOR SALE (DOLLARS IN THOUSANDS) Securities Available for Sale 2015 2014 2013 $ $ $ Proceeds from sales 154,384 155,363 116,347 Gross realized gains 2,934 3,815 4,209 Gross realized losses 94 684 821 SUMMARY OF GAINS AND LOSSES ON SECURITIES AVAILABLE FOR SALE (DOLLARS IN THOUSANDS) 2015 2014 2013 $ $ $ Gross realized gains 2,934 3,815 4,209 Gross realized losses 94 684 821 Impairment on securities - 22 171 Total gross realized losses 94 706 992 Net gains on securities 2,840 3,109 3,217 |
Schedule of securities in an unrealized loss position (temporary impairment) | 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 December 31, 2015 U.S. government agencies 24,968 (106 ) 1,965 (35 ) 26,933 (141 ) U.S. agency mortgage-backed securities 24,613 (235 ) 4,827 (112 ) 29,440 (347 ) U.S. agency collateralized mortgage obligations 26,563 (827 ) 4,652 (107 ) 31,215 (934 ) Corporate bonds 50,530 (532 ) 2,002 (17 ) 52,532 (549 ) Obligations of states & political subdivisions 21,913 (252 ) 7,435 (153 ) 29,348 (405 ) Total debt securities 148,587 (1,952 ) 20,881 (424 ) 169,468 (2,376 ) Marketable equity securities 142 (5 ) - - 142 (5 ) Total temporarily impaired securities 148,729 (1,957 ) 20,881 (424 ) 169,610 (2,381 ) As of December 31, 2014 U.S. government agencies 9,676 (30 ) 19,689 (498 ) 29,365 (528 ) U.S. agency mortgage-backed securities 7,412 (18 ) 5,412 (116 ) 12,824 (134 ) U.S. agency collateralized mortgage obligations 25,314 (403 ) 11,222 (276 ) 36,536 (679 ) Corporate bonds 33,413 (227 ) 9,855 (84 ) 43,268 (311 ) Obligations of states & political subdivisions 2,710 (29 ) 16,720 (229 ) 19,430 (258 ) Total temporarily impaired securities 78,525 (707 ) 62,898 (1,203 ) 141,423 (1,910 ) |
Schedule of security impairment charges | SECURITY IMPAIRMENT CHARGES December 31, 2014 (DOLLARS IN THOUSANDS) Amortized Market Unrealized Impairment Cost Value Loss Charge $ $ $ $ Private collateralized mortgage obligations - - - (22 ) |
Schedule of credit losses recognized in earnings on debt securities | CREDIT LOSSES ON DEBT SECURITIES (DOLLARS IN THOUSANDS) For the year ended December 31, 2015 2014 2013 $ $ $ Beginning balance - 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 - 22 171 Sale of debt securities with previously recognized impairment - (1,170) - Ending balance - - 1,148 |
LOANS AND ALLOWANCE FOR LOAN 32
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract] | |
Schedule of loan portfolio by category | LOAN PORTFOLIO (DOLLARS IN THOUSANDS) December 31, 2015 2014 $ $ Commercial real estate Commercial mortgages 87,613 95,914 Agriculture mortgages 158,321 140,322 Construction 14,966 7,387 Total commercial real estate 260,900 243,623 Consumer real estate (a) 1-4 family residential mortgages 133,538 123,395 Home equity loans 10,288 12,563 Home equity lines of credit 37,374 27,308 Total consumer real estate 181,200 163,266 Commercial and industrial Commercial and industrial 36,189 31,998 Tax-free loans 19,083 11,806 Agriculture loans 18,305 16,496 Total commercial and industrial 73,577 60,300 Consumer 3,892 3,517 Gross loans prior to deferred costs and allowance for loan losses 519,569 470,706 Less: Deferred loan costs, net (714) (462) Allowance for loan losses 7,078 7,141 Total net loans 513,205 464,027 (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $ 38,024,000 16,670,000 |
Schedule of commercial and consumer credit exposure | COMMERCIAL CREDIT EXPOSURE CREDIT RISK PROFILE BY INTERNALLY ASSIGNED GRADE (DOLLARS IN THOUSANDS) December 31, 2015 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 81,865 154,507 13,822 35,416 19,083 17,860 322,553 Special Mention 511 623 - - - 125 1,259 Substandard 5,237 3,191 1,144 773 - 320 10,665 Doubtful - - - - - - - Loss - - - - - - - Total 87,613 158,321 14,966 36,189 19,083 18,305 334,477 December 31, 2014 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 82,478 135,298 5,350 31,006 11,806 16,255 282,193 Special Mention 2,649 3,237 - 29 - 29 5,944 Substandard 10,787 1,787 2,037 963 - 212 15,786 Doubtful - - - - - - - Loss - - - - - - - Total 95,914 140,322 7,387 31,998 11,806 16,496 303,923 CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) 1-4 Family Home Equity December 31, 2015 Residential Home Equity Lines of Mortgages Loans Credit Consumer Total Payment performance: $ $ $ $ $ Performing 133,220 10,278 37,327 3,889 184,714 Non-performing 318 10 47 3 378 Total 133,538 10,288 37,374 3,892 185,092 1-4 Family Home Equity December 31, 2014 Residential Home Equity Lines of Mortgages Loans Credit Consumer Total Payment performance: $ $ $ $ $ Performing 123,023 12,551 27,308 3,517 166,399 Non-performing 372 12 - - 384 Total 123,395 12,563 27,308 3,517 166,783 |
Schedule of aging of loans receivable | AGING OF LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Greater Loans December 31, 2015 than 90 Receivable > 30-59 Days 60-89 Days Days Total Past Total Loans 90 Days and Past Due Past Due Past Due Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages - 601 - 601 87,012 87,613 - Agriculture mortgages - - - - 158,321 158,321 - Construction - - - - 14,966 14,966 - Consumer real estate 1-4 family residential mortgages 1,264 123 318 1,705 131,833 133,538 318 Home equity loans 27 59 10 96 10,192 10,288 10 Home equity lines of credit 35 - 47 82 37,292 37,374 47 Commercial and industrial Commercial and industrial 20 9 - 29 36,160 36,189 - Tax-free loans - - - - 19,083 19,083 - Agriculture loans - - - - 18,305 18,305 - Consumer 17 17 3 37 3,855 3,892 3 Total 1,363 809 378 2,550 517,019 519,569 378 Greater Loans December 31, 2014 than 90 Receivable > 30-59 Days 60-89 Days Days Total Past Total Loans 90 Days and Past Due Past Due Past Due Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages - 189 266 455 95,459 95,914 - Agriculture mortgages - - - - 140,322 140,322 - Construction - - - - 7,387 7,387 - Consumer real estate 1-4 family residential mortgages 665 349 372 1,386 122,009 123,395 372 Home equity loans 78 14 12 104 12,459 12,563 12 Home equity lines of credit 13 - - 13 27,295 27,308 - Commercial and industrial Commercial and industrial 21 73 - 94 31,904 31,998 - Tax-free loans - - - - 11,806 11,806 - Agriculture loans - - - - 16,496 16,496 - Consumer 23 1 - 24 3,493 3,517 - Total 800 626 650 2,076 468,630 470,706 384 |
Schedule of nonaccrual loans by class | NON-ACCRUAL LOANS BY LOAN CLASS (DOLLARS IN THOUSANDS) 2015 2014 $ $ Commercial real estate Commercial mortgages 380 894 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 - 73 Tax-free loans - - Agriculture loans - - Consumer - - Total 380 967 |
Schedule of impaired loans | Information with respect to impaired loans as of and for the years ended December 31 is as follows: IMPAIRED LOANS (DOLLARS IN THOUSANDS) 2015 2014 2013 $ $ $ Impaired loans Loan balances without a related allowance for loan losses 1,705 2,209 2,693 Loan balances with a related allowance for loan losses - 149 - Related allowance for loan losses - 1 - Average recorded balance of impaired loans 1,957 2,624 2,827 Interest income recognized on impaired loans 86 110 113 The following table summarizes information in regards to impaired loans by loan portfolio class as of December 31, 2015: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 380 952 - 544 - Agriculture mortgages 1,325 1,325 - 1,359 83 Construction - - - - - Total commercial real estate 1,705 2,277 - 1,903 83 Commercial and industrial Commercial and industrial - 49 - 54 3 Tax-free loans - - - - - Agriculture loans - - - - - Total commercial and industrial - 49 - 54 3 Total with no related allowance 1,705 2,326 - 1,957 86 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 380 952 - 544 - Agriculture mortgages 1,325 1,325 - 1,359 83 Construction - - - - - Total commercial real estate 1,705 2,277 - 1,903 83 Commercial and industrial Commercial and industrial - 49 - 54 3 Tax-free loans - - - - - Agriculture loans - - - - - Total commercial and industrial - 49 - 54 3 Total 1,705 2,326 - 1,957 86 The following table summarizes information in regards to impaired loans by loan portfolio class as of December 31, 2014: Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 745 931 - 931 - Agriculture mortgages 1,391 1,391 - 1,539 104 Construction - - - - - Total commercial real estate 2,136 2,322 - 2,470 104 Commercial and industrial Commercial and industrial 73 73 - 86 6 Tax-free loans - - - - - Agriculture loans - - - - - Total commercial and industrial 73 73 - 86 6 Total with no related allowance 2,209 2,395 - 2,556 110 With an allowance recorded: Commercial real estate Commercial mortgages 149 264 1 68 - Agriculture mortgages - - - - - Construction - - - - - Total commercial real estate 149 264 1 68 - Commercial and industrial Commercial and industrial - - - - - Tax-free loans - - - - - Agriculture loans - - - - - Total commercial and industrial - - - - - Total with a related allowance 149 264 1 68 - Total by loan class: Commercial real estate Commercial mortgages 894 1,195 1 999 - Agriculture mortgages 1,391 1,391 - 1,539 104 Construction - - - - - Total commercial real estate 2,285 2,586 1 2,538 104 Commercial and industrial Commercial and industrial 73 73 - 86 6 Tax-free loans - - - - - Agriculture loans - - - - - Total commercial and industrial 73 73 - 86 6 Total 2,358 2,659 1 2,624 110 |
Schedule of allowance for credit losses | ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Commercial Commercial Consumer and Real Estate Real Estate Industrial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance 3,834 1,367 1,301 66 573 7,141 Charge-offs (272 ) (28 ) (44 ) (18 ) - (362 ) Recoveries 34 - 112 3 - 149 Provision (credit) 235 64 (55 ) 11 (105 ) 150 Ending balance 3,831 1,403 1,314 62 468 7,078 Ending balance: individually evaluated for impairment - - - - - - Ending balance: collectively evaluated for impairment 3,831 1,403 1,314 62 468 7,078 Loans receivable: Ending balance 260,900 181,200 73,577 3,892 519,569 Ending balance: individually evaluated for impairment 1,705 - - - 1,705 Ending balance: collectively evaluated for impairment 259,195 181,200 73,577 3,892 517,864 ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Commercial Commercial Consumer and Real Estate Real Estate Industrial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance 3,657 1,346 1,416 102 698 7,219 Charge-offs (204 ) - (12 ) (19 ) - (235 ) Recoveries - 5 201 1 - 207 Provision (credit) 381 16 (304 ) (18 ) (125 ) (50 ) Ending balance 3,834 1,367 1,301 66 573 7,141 Ending balance: individually evaluated for impairment 1 - - - - 1 Ending balance: collectively evaluated for impairment 3,833 1,367 1,301 66 573 7,140 Loans receivable: Ending balance 243,623 163,266 60,300 3,517 470,706 Ending balance: individually evaluated for impairment 2,285 - 73 - 2,358 Ending balance: collectively evaluated for impairment 241,338 163,266 60,227 3,517 468,348 ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Commercial Commercial Consumer and Real Estate Real Estate Industrial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance 3,575 1,510 1,640 61 730 7,516 Charge-offs - (84 ) (41 ) (22 ) - (147 ) Recoveries - - 74 1 - 75 Provision (credit) 82 (80 ) (257 ) 62 (32 ) (225 ) Ending balance 3,657 1,346 1,416 102 698 7,219 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 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
PREMISES AND EQUIPMENT [Abstract] | |
Schedule of Premises and Equipment | December 31, 2015 2014 $ $ Land 3,687 3,687 Buildings and improvements 24,699 24,619 Furniture and equipment 12,423 11,926 Construction in process 163 144 Total 40,972 40,376 Less accumulated depreciation 19,276 17,929 Premises and equipment 21,696 22,447 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DEPOSITS [Abstract] | |
Schedule of Deposit Liabilities | December 31, 2015 2014 $ $ Non-interest bearing demand 236,214 210,444 Interest-bearing demand 14,737 14,039 NOW accounts 77,180 72,951 Money market deposit accounts 82,507 69,442 Savings accounts 148,320 131,206 Time deposits under $250,000 165,939 179,053 Time deposits of $ or more 15,165 22,516 Total deposits 740,062 699,651 |
Maturities of time deposits | 2016 95,182 2017 27,927 2018 19,994 2019 18,893 2020 19,108 Total 181,104 |
SHORT TERM BORROWINGS (Tables)
SHORT TERM BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SHORT TERM BORROWINGS [Abstract] | |
Schedule of Short-term borrowings | 2015 2014 2013 $ $ $ Total short-term borrowings outstanding at year end 8,736 - 3,900 Average interest rate at year end 0.29 % - 0.35 % Maximum outstanding at any month end 13,666 7,260 5,527 Average amount outstanding for the year 8,720 5,513 1,637 Weighted-average interest rate for the year 0.34 % 0.19 % 0.14 % |
OTHER BORROWED FUNDS (Tables)
OTHER BORROWED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
OTHER BORROWED FUNDS [Abstract] | |
Schedule of Federal Home Loan Bank Advances and Repurchase Agreements by maturity | December 31, 2015 2014 Weighted- Weighted- Average Average Amount Rate Amount Rate $ % $ % FHLB fixed rate loans 2015 - - 3,000 2.21 2016 15,500 1.93 15,500 1.93 2017 15,000 1.26 15,000 1.26 2018 11,650 1.22 11,650 1.22 2019 6,767 1.68 4,650 1.80 2020 10,677 1.59 - - FHLB convertible loans 2015 - - 2,500 4.17 Repurchase agreements 2015 - - 10,000 4.37 Total other borrowings 59,594 1.53 62,300 2.12 |
Schedule of Repurchase Agreements | REPURCHASE AGREEMENTS (DOLLARS IN THOUSANDS) 2015 2014 2013 $ $ $ Repurchase agreements outstanding at year end - 10,000 15,000 Average interest rate at year end - 4.37 % 4.50 % Maximum outstanding at any month end 10,000 15,000 15,000 Average amount outstanding for the year 5,863 12,904 15,000 Weighted-average interest rate for the year 4.74 % 4.52 % 4.50 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES [Abstract] | |
Schedule of Income Tax Reconciliation | FEDERAL INCOME TAX SUMMARY ) Year Ended December 31, 2015 2014 2013 $ % $ % $ % Income tax at statutory rate 2,811 34.0 2,937 34.0 3,132 34.0 Tax-exempt interest income (1,270 ) (15.4 ) (1,266 ) (14.7 ) ( 1,498 ) ( 16.3 ) Non-deductible interest expense 39 0.5 49 0.6 61 0.7 Bank-owned life insurance (247 ) (3.0 ) (218 ) (2.5 ) ( 217 ) ( 2.3 ) Other 25 0.3 44 0.5 23 0.2 Income tax expense 1,358 16.4 1,546 17.9 1,501 16.3 |
Schedule of Components of Income Tax Expense | Significant components of income tax expense are as follows: (DOLLARS IN THOUSANDS) Year Ended December 31, 2015 2014 2013 $ $ $ Current tax expense 1,095 1,032 1,671 Deferred tax expense (benefit) 275 531 ( 174 Valuation allowance adjustment (12 ) (17) 4 Income tax expense 1,358 1,546 1,501 |
Schedule of Deferred Tax Assets and Liabilities | Components of the Corporation's net deferred tax position are as follows: (DOLLARS IN THOUSANDS) December 31, 2015 2014 2013 $ $ $ Deferred tax assets Allowance for loan losses 2,406 2,428 2,454 Net unrealized holding losses on securities available for sale 130 — 2,030 Deferred compensation reserve 148 199 248 Capital loss carryforward 13 25 42 Other than temporary impairment — — 106 Tax credit carryforward 1,085 996 1,137 Allowance for off-balance sheet extensions of credit 155 105 148 Interest on non-accrual loans 155 170 164 Other 7 6 305 Total deferred tax assets 4,099 3,929 6,634 Valuation allowance (13 ) (25 ) ( 42 ) Net deferred taxes 4,086 3,904 6,592 Deferred tax liabilities Premises and equipment (1,852 ) (1,536 ) ( 1,388 ) Net unrealized holding gains on securities available for sale — (516 ) — Discount on investment securities (1 ) (1 ) ( 61 ) Credit losses on impaired securities — — ( 228 ) Other (24 ) (13 ) — Total deferred tax liabilities (1,877 ) (2,066 ) ( 1,677 ) Net deferred tax assets (liabilities) 2,209 1,838 4,915 |
REGULATORY MATTERS AND RESTRI38
REGULATORY MATTERS AND RESTRICTIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
REGULATORY MATTERS AND RESTRICTIONS [Abstract] | |
Schedule of Regulatory Capital Requirements | CAPITAL LEVELS (DOLLARS IN THOUSANDS) To Be Well Capitalized Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provision $ % $ % $ % As of December 31, 2015 Total Capital to Risk-Weighted Assets Consolidated 102,891 15.9 51,638 8.0 64,548 10.0 Bank 101,791 15.8 51,596 8.0 64,495 10.0 Tier I Capital to Risk-Weighted Assets Consolidated 95,353 14.8 38,729 6.0 51,638 8.0 Bank 94,258 14.6 38,697 6.0 51,596 8.0 Common Equity Tier I Capital to Risk-Weighted Assets Consolidated 95,353 14.8 29,046 4.5 41,956 6.5 Bank 94,258 14.6 29,023 4.5 41,921 6.5 Tier I Capital to Average Assets Consolidated 95,353 10.8 35,358 4.0 44,198 5.0 Bank 94,258 10.7 35,342 4.0 44,178 5.0 As of December 31, 2014 Total Capital to Risk-Weighted Assets Consolidated 98,900 17.3 45,650 8.0 57,063 10.0 Bank 97,921 17.2 45,633 8.0 57,042 10.0 Tier I Capital to Risk-Weighted Assets Consolidated 91,755 16.1 22,825 4.0 34,238 6.0 Bank 90,787 15.9 22,817 4.0 34,225 6.0 Tier I Capital to Average Assets Consolidated 91,755 10.7 34,330 4.0 42,913 5.0 Bank 90,787 10.6 34,324 4.0 42,905 5.0 |
TRANSACTIONS WITH DIRECTORS A39
TRANSACTIONS WITH DIRECTORS AND OFFICERS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
TRANSACTIONS WITH DIRECTORS AND OFFICERS [Abstract] | |
Schedule of Related Party Loans | LOANS TO INSIDERS (DOLLARS IN THOUSANDS) Actual $ Balance, January 1, 2014 10,432 Advances 1,555 Repayments (1,809 ) Other Changes (5,967 ) Balance, December 31, 2014 4,211 Balance, January 1, 2015 4,211 Advances 2,165 Repayments (2,113 ) Other Changes (15 ) Balance, December 31, 2015 4,248 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Schedule of assets measured on a recurring basis | ASSETS REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 31, 2015 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 29,691 — 29,691 U.S. agency mortgage-backed securities — 41,980 — 41,980 U. S. agency collateralized mortgage obligations — 47,331 — 47,331 Corporate bonds — 63,305 — 63,305 Obligations of states and political subdivisions — 101,583 — 101,583 Marketable equity securities 5,533 — — 5,533 Total securities 5,533 283,890 — 289,423 ASSETS REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 31, 2014 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 46,159 — 46,159 U.S. agency mortgage-backed securities — 37,950 — 37,950 U. S. agency collateralized mortgage obligations — 48,066 — 48,066 Corporate bonds — 65,108 — 65,108 Obligations of states and political subdivisions — 93,331 — 93,331 Marketable equity securities 5,208 — — 5,208 Total securities 5,208 290,614 — 295,822 |
Schedule of assets measured on a nonrecurring basis | ASSETS MEASURED ON A NONRECURRING BASIS (DOLLARS IN THOUSANDS) December 31, 2015 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans — — 1,705 1,705 OREO — — — — Total — — 1,705 1,705 December 31, 2014 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans — — 2,357 2,357 OREO — — 69 69 Total — — 2,426 2,426 |
Schedule of Level III inputs | QUANTITATIVE INFORMATION ABOUT LEVEL III FAIR VALUE MEASUREMENTS (DOLLARS IN THOUSANDS) December 31, 2015 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 1,705 Appraisal of collateral Appraisal adjustments (2) 0 -20 -20 Liquidation expenses (2) 0 -10 -10 December 31, 2014 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 2,357 Appraisal of collateral Appraisal adjustments (2) 0 -20 -20 Liquidation expenses (2) 0 -10 -10 OREO 69 Appraisal of collateral Appraisal adjustments (2) -40 Liquidation expenses (2) -1 (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally includes 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. |
DISCLOSURES ABOUT FAIR VALUE 41
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Schedule of carrying amount and fair value of financial instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS (DOLLARS IN THOUSANDS) December 31, 2015 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level I) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 44,227 44,227 44,227 — — Securities available for sale 289,423 289,423 5,533 283,890 — Regulatory stock 4,314 4,314 4,314 — — Loans held for sale 1,126 1,126 1,126 — — Loans, net of allowance 513,205 512,481 — — 512,481 Accrued interest receivable 3,600 3,600 3,600 — — Bank owned life insurance 23,869 23,869 23,869 — — Financial Liabilities: Demand deposits 236,214 236,214 236,214 — — Interest-bearing demand deposits 14,737 14,737 14,737 — — NOW accounts 77,180 77,180 77,180 — — Money market deposit accounts 82,507 82,507 82,507 — — Savings accounts 148,320 148,320 148,320 — — Time deposits 181,104 182,887 — — 182,887 Total deposits 740,062 741,845 558,958 — 182,887 Short-term borrowings 8,736 8,736 8,736 — — Long-term debt 59,594 59,805 — — 59,805 Accrued interest payable 456 456 456 — — FAIR VALUE OF FINANCIAL INSTRUMENTS (DOLLARS IN THOUSANDS) December 31, 2014 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level I) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 43,412 43,412 43,412 — — Securities available for sale 295,822 295,822 5,208 290,614 — Regulatory stock 3,227 3,227 3,227 — — Loans held for sale 506 506 506 — — Loans, net of allowance 464,027 463,197 — — 463,197 Accrued interest receivable 3,706 3,706 3,706 — — Bank owned life insurance 20,603 20,603 20,603 — — Financial Liabilities: Demand deposits 210,444 210,444 210,444 — — Interest-bearing demand deposits 14,039 14,039 14,039 — — NOW accounts 72,951 72,951 72,951 — — Money market deposit accounts 69,442 69,442 69,442 — — Savings accounts 131,206 131,206 131,206 — — Time deposits 201,569 203,787 — — 203,787 Total deposits 699,651 701,869 498,082 — 203,787 Long-term debt 62,300 63,058 — — 63,058 Accrued interest payable 586 586 586 — — |
ACCUMULATED OTHER COMPREHENSI42
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | |
Schedule of accumulated other comprehensive income | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (1) (2) (DOLLARS IN THOUSANDS) Unrealized Gains (Losses) on Securities Available-for-Sale $ Balance at January 1, 2015 1,002 Other comprehensive income (loss) before reclassifications 621 Amount reclassified from accumulated other comprehensive income (loss) (1,875 ) Period change (1,254 ) Balance at December 31, 2015 (252 ) Balance at January 1, 2014 (3,940 ) Other comprehensive income (loss) before reclassifications 6,993 Amount reclassified into accumulated other comprehensive income (loss) (2,051 ) Period change 4,942 Balance at December 31, 2014 1,002 (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 Year Ended December 31, Affected Line Item 2015 2014 in the Statements of $ $ Income Securities available-for-sale: Net securities gains reclassified into earnings 2,840 3,131 Gains on securities transactions, net Related income tax expense (965 ) (1,065 ) Provision for federal income taxes Net effect on accumulated other comprehensive income for the period 1,875 2,066 Net impairment losses reclassified into earnings - (22 ) Impairment losses on securities Related income tax expense - 7 Provision for federal income taxes Net effect on accumulated other comprehensive income (loss) for the period - (15 ) Total reclassifications for the period 1,875 2,051 (1) Amounts in parentheses indicate debits. |
CONDENSED PARENT ONLY DATA (Tab
CONDENSED PARENT ONLY DATA (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
CONDENSED PARENT ONLY DATA [Abstract] | |
Condensed Balance Sheet | Condensed Balance Sheets (Parent Company Only) (DOLLARS IN THOUSANDS) December 31, 2015 2014 $ $ Assets Cash 509 702 Securities available for sale (at fair value) 533 208 Equity in bank subsidiary 93,994 91,786 Other assets 66 71 Total assets 95,102 92,767 Stockholders' Equity Capital stock 574 574 Capital surplus 4,395 4,375 Retained earnings 91,029 87,200 Unrealized gain (loss) on AFS securities (252) 1,002 Treasury stock (644 ) ( 384 ) Total stockholders' equity 95,102 92,767 |
Condensed Statements of Comprehensive Income | Condensed Statements of Comprehensive Income (DOLLARS IN THOUSANDS) Year Ended December 31, 2015 2014 2013 $ $ $ Income Dividend income - investment securities 16 9 7 Gains on securities transactions 25 49 25 Dividend income 3,581 3,556 2,966 Undistributed earnings of bank subsidiary 3,462 3,621 4,855 Total income 7,084 7,235 7,853 Expense Shareholder expenses 118 129 131 Other expenses 56 14 12 Total expense 174 143 143 Net Income 6,910 7,092 7,710 Comprehensive Income (Loss) 5,656 12,034 ( 2,893 ) |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (DOLLARS IN THOUSANDS) Year Ended December 31, 2015 2014 2013 Cash Flows from Operating Activities: $ $ $ Net Income 6,910 7,092 7,710 Equity in undistributed earnings of subsidiaries (3,462 ) ( 3,621 ) ( 4,855 ) Gains on securities transactions, net (25 ) (49 ) (25 ) Net change in other assets 5 (3 ) 4 Net cash provided by operating activities 3,428 3,419 2,834 Cash Flows from Investing Activities: Proceeds from sales of securities available for sale 167 338 120 Purchases of securities available for sale (467 ) ( 327 ) (246 ) Net cash provided by (used for) investing activities (300 ) 11 (126 ) Cash Flows from Financing Activities: Proceeds from issuance of treasury stock 512 499 477 Payment to repurchase common stock (752 ) ( 485 ) ( 357 ) Dividends paid (3,081 ) ( 3,057 ) ( 2,966 ) Net cash used for financing activities (3,321 ) ( 3,043 ) ( 2,846 ) Cash and Cash Equivalents: Net change in cash and cash equivalents (193 ) 387 (138 ) Cash and cash equivalents at beginning of period 702 315 453 Cash and cash equivalents at end of period 509 702 315 |
SUMMARY OF QUARTERLY FINANCIA44
SUMMARY OF QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
Schedule of Quarterly Results of Operations | 2015 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $ $ $ $ Interest income 6,872 6,718 6,761 6,491 Interest expense 1,014 951 928 851 Net interest income 5,858 5,767 5,833 5,640 Less provision (credit) for loan losses 200 100 (150 ) - Net interest income after provision (credit) for loan losses 5,658 5,667 5,983 5,640 Other income 2,201 2,394 2,342 3,118 Operating expenses: Salaries and employee benefits 3,702 3,674 3,679 3,741 Occupancy and equipment expenses 822 822 791 783 Other operating expenses 1,626 1,691 1,620 1,784 Total operating expenses 6,150 6,187 6,090 6,308 Income before income taxes 1,709 1,874 2,235 2,450 Provision for Federal income taxes 243 278 382 455 Net income 1,466 1,596 1,853 1,995 FINANCIAL RATIOS Per share data: Net income 0.51 0.56 0.65 0.70 Cash dividends paid 0.27 0.27 0.27 0.27 2014 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $ $ $ $ Interest income 6,872 6,825 6,696 6,744 Interest expense 1,217 1,217 1,155 1,087 Net interest income 5,655 5,608 5,541 5,657 Less provision (credit) for loan losses (200 ) (100 ) — 250 Net interest income after provision (credit) for loan losses 5,855 5,708 5,541 5,407 Other income 2,180 2,168 2,275 2,925 Operating expenses: Salaries and employee benefits 3,430 3,481 3,517 3,515 Occupancy and equipment expenses 776 727 763 794 Other operating expenses 1,592 1,581 1,487 1,758 Total operating expenses 5,798 5,789 5,767 6,067 Income before income taxes 2,237 2,087 2,049 2,265 Provision for Federal income taxes 399 347 337 463 Net income 1,838 1,740 1,712 1,802 FINANCIAL RATIOS Per share data: Net income 0.64 0.61 0.60 0.63 Cash dividends paid 0.26 0.27 0.27 0.27 2013 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr $ $ $ $ Interest income 6,653 6,609 6,745 6,899 Interest expense 1,430 1,348 1,322 1,282 Net interest income 5,223 5,261 5,423 5,617 Less credit for loan losses (50 ) (100 ) — (75 ) Net interest income after credit for loan losses 5,273 5,361 5,423 5,692 Other income 2,503 2,229 1,939 2,726 Operating expenses: Salaries and employee benefits 3,168 3,184 3,193 3,368 Occupancy and equipment expenses 644 665 710 693 Other operating expenses 1,564 1,627 1,444 1,675 Total operating expenses 5,376 5,476 5,347 5,736 Income before income taxes 2,400 2,114 2,015 2,682 Provision for Federal income taxes 392 292 274 543 Net income 2,008 1,822 1,741 2,139 FINANCIAL RATIOS Per share data: Net income 0.70 0.64 0.61 0.75 Cash dividends paid 0.26 0.26 0.26 0.26 |
SUMMARY OF SIGNIFICANT ACCOUN45
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowances for off-balance sheet extensions of credit | $ 455,000 | $ 310,000 | |
Other Real Estate Owned (OREO) | 0 | 69,000 | |
Mortgage Servicing Rights (MSRs) | 240,000 | 96,000 | |
Bank owned life insurance | $ 23,869,000 | 20,603,000 | |
Employer matching contribution, maximum percentage of employee pay | 7.50% | ||
Additional investment in BOLI | $ 2,500,000 | ||
Increase in BOLI | $ 3,266,000 | ||
Increase in BOLI (as a percent) | 15.90% | ||
Advertising costs | $ 552,000 | $ 474,000 | $ 486,000 |
401(K) Plan [Member] | |||
Employee contribution percentage | 5.00% | ||
Employer matching contribution, maximum percentage of employee pay | 2.50% | ||
Employer matching contribution, matching percentage | 50.00% | ||
Pension [Member] | |||
Flat percentage Employer contribution | 5.00% | ||
Additional percentage contribution of covered compensation | 5.00% | ||
Buildings [Member] | Lower Range [Member] | |||
Useful life | 15 years | ||
Buildings [Member] | Upper Range [Member] | |||
Useful life | 39 years | ||
Furniture and Equipment [Member] | Lower Range [Member] | |||
Useful life | 4 years | ||
Furniture and Equipment [Member] | Upper Range [Member] | |||
Useful life | 10 years |
SECURITIES AVAILABLE FOR SALE46
SECURITIES AVAILABLE FOR SALE (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)N | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)N | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale debt securities pledged or restricted for public funds, par value | $ 60,295,000 | $ 75,013,000 | |
Available for sale debt securities pledged or restricted for public funds, fair value | $ 65,137,000 | 78,269,000 | |
Number of securities considered temporarily impaired | N | 116 | ||
Net impairment losses on investment securities | (22,000) | $ (171,000) | |
Private Collateralized Mortgage Obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Number of securities considered temporarily impaired | N | 2 | ||
Net impairment losses on investment securities | $ (22,000) | $ (171,000) |
SECURITIES AVAILABLE FOR SALE47
SECURITIES AVAILABLE FOR SALE (Schedule of Amortized Cost and Fair Value of Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Securities Available For Sale | ||
Amortized Cost | $ 289,805 | $ 294,304 |
Gross Unrealized Gains | 1,999 | 3,428 |
Gross Unrealized Losses | (2,381) | (1,910) |
Fair Value | 289,423 | 295,822 |
U.S. Government Agencies [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 29,829 | 46,577 |
Gross Unrealized Gains | 3 | 110 |
Gross Unrealized Losses | (141) | (528) |
Fair Value | 29,691 | 46,159 |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 42,288 | 37,946 |
Gross Unrealized Gains | 39 | 138 |
Gross Unrealized Losses | (347) | (134) |
Fair Value | 41,980 | 37,950 |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 48,140 | 48,690 |
Gross Unrealized Gains | 125 | 55 |
Gross Unrealized Losses | (934) | (679) |
Fair Value | 47,331 | 48,066 |
Corporate Bonds [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 63,825 | 65,274 |
Gross Unrealized Gains | 29 | 145 |
Gross Unrealized Losses | (549) | (311) |
Fair Value | 63,305 | 65,108 |
Obligations of States and Political Subdivisions [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 100,208 | 90,628 |
Gross Unrealized Gains | 1,780 | 2,961 |
Gross Unrealized Losses | (405) | (258) |
Fair Value | 101,583 | 93,331 |
Total Debt Securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 284,290 | 289,115 |
Gross Unrealized Gains | 1,976 | 3,409 |
Gross Unrealized Losses | (2,376) | (1,910) |
Fair Value | 283,890 | 290,614 |
Marketable equity securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 5,515 | 5,189 |
Gross Unrealized Gains | 23 | $ 19 |
Gross Unrealized Losses | (5) | |
Fair Value | $ 5,533 | $ 5,208 |
SECURITIES AVAILABLE FOR SALE48
SECURITIES AVAILABLE FOR SALE (Schedule of Contractual Maturity of Debt Securities) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Contractual maturity of debt securities, Amortized Cost | |
Due in one year or less | $ 18,827 |
Due after one year through five years | 110,893 |
Due after five years through ten years | 58,426 |
Due after ten years | 96,144 |
Total debt securities | 284,290 |
Contractual maturity of debt securities, Fair Value | |
Due in one year or less | 18,650 |
Due after one year through five years | 109,881 |
Due after five years through ten years | 58,416 |
Due after ten years | 96,943 |
Securities available for sale | $ 283,890 |
SECURITIES AVAILABLE FOR SALE49
SECURITIES AVAILABLE FOR SALE (Schedule of Proceeds and Gains and Losses on Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Proceeds from sales of securities available for sale | |||
Proceeds from sales of securities available for sale | $ 154,384 | $ 155,363 | $ 116,347 |
Gross realized gains | 2,934 | 3,815 | 4,209 |
Gross realized losses | $ 94 | $ 684 | $ 821 |
SECURITIES AVAILABLE FOR SALE50
SECURITIES AVAILABLE FOR SALE (Schedule of Gains and Losses on Debt Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gains and losses on securities available for sale | |||
Gross realized gains | $ 2,934 | $ 3,815 | $ 4,209 |
Gross realized losses | $ 94 | 684 | 821 |
Impairment on securities | 22 | 171 | |
Total gross realized losses | $ 94 | 706 | 992 |
Net gains on securities | $ 2,840 | $ 3,109 | $ 3,217 |
SECURITIES AVAILABLE FOR SALE51
SECURITIES AVAILABLE FOR SALE (Schedule of Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value | ||
Less than 12 months | $ 148,729 | $ 78,525 |
More than 12 months | 20,881 | 62,898 |
Total | 169,610 | 141,423 |
Gross Unrealized Losses | ||
Less than 12 months | (1,957) | (707) |
More than 12 months | (424) | (1,203) |
Total | (2,381) | (1,910) |
U.S. Government Agencies [Member] | ||
Fair Value | ||
Less than 12 months | 24,968 | 9,676 |
More than 12 months | 1,965 | 19,689 |
Total | 26,933 | 29,365 |
Gross Unrealized Losses | ||
Less than 12 months | (106) | (30) |
More than 12 months | (35) | (498) |
Total | (141) | (528) |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Fair Value | ||
Less than 12 months | 24,613 | 7,412 |
More than 12 months | 4,827 | 5,412 |
Total | 29,440 | 12,824 |
Gross Unrealized Losses | ||
Less than 12 months | (235) | (18) |
More than 12 months | (112) | (116) |
Total | (347) | (134) |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value | ||
Less than 12 months | 26,563 | 25,314 |
More than 12 months | 4,652 | 11,222 |
Total | 31,215 | 36,536 |
Gross Unrealized Losses | ||
Less than 12 months | (827) | (403) |
More than 12 months | (107) | (276) |
Total | (934) | (679) |
Corporate Bonds [Member] | ||
Fair Value | ||
Less than 12 months | 50,530 | 33,413 |
More than 12 months | 2,002 | 9,855 |
Total | 52,532 | 43,268 |
Gross Unrealized Losses | ||
Less than 12 months | (532) | (227) |
More than 12 months | (17) | (84) |
Total | (549) | (311) |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value | ||
Less than 12 months | 21,913 | 2,710 |
More than 12 months | 7,435 | 16,720 |
Total | 29,348 | 19,430 |
Gross Unrealized Losses | ||
Less than 12 months | (252) | (29) |
More than 12 months | (153) | (229) |
Total | (405) | $ (258) |
Total Debt Securities [Member] | ||
Fair Value | ||
Less than 12 months | 148,587 | |
More than 12 months | 20,881 | |
Total | 169,468 | |
Gross Unrealized Losses | ||
Less than 12 months | (1,952) | |
More than 12 months | (424) | |
Total | (2,376) | |
Marketable equity securities [Member] | ||
Fair Value | ||
Less than 12 months | $ 142 | |
More than 12 months | ||
Total | $ 142 | |
Gross Unrealized Losses | ||
Less than 12 months | $ (5) | |
More than 12 months | ||
Total | $ (5) |
SECURITIES AVAILABLE FOR SALE52
SECURITIES AVAILABLE FOR SALE (Schedule of Security Impairment Charges) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Security Impairment Charges | |||
Unrealized Loss | $ (2,381,000) | $ (1,910,000) | |
Impairment on securities | $ (22,000) | $ (171,000) | |
Private Collateralized Mortgage Obligations [Member] | |||
Security Impairment Charges | |||
Book Value | |||
Market value | |||
Unrealized Loss | |||
Impairment on securities | $ (22,000) | $ (171,000) |
SECURITIES AVAILABLE FOR SALE53
SECURITIES AVAILABLE FOR SALE (Schedule of Credit Losses Recognized in Earnings on Debt Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Credit losses recognized in earnings for debt securities held and not intended to be sold | |||
Impairment losses balance, beginning | $ 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 | $ 22 | $ 171 | |
Sale of debt securities with previously recognized impairment | $ (1,170) | ||
Impairment losses balance, ending | $ 1,148 |
LOANS AND ALLOWANCE FOR LOAN 54
LOANS AND ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Foregone interest income for impaired loans | $ 23,000 | $ 39,000 | $ 82,000 |
Decrease in ending balance of allowance for loan losses | $ 63,000 | ||
Decrease in ending balance of allowance for loan losses | 0.90% | ||
Loans Serviced for Others [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Real estate loans serviced for others | $ 38,024,000 | $ 16,670,000 |
LOANS AND ALLOWANCE FOR LOAN 55
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Loan Portfolio by Category) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | $ 519,569 | $ 470,706 | $ 437,872 | ||||
Deferred loan costs, net | (714) | (462) | |||||
Allowance for loan losses | 7,078 | 7,141 | 7,219 | $ 7,516 | |||
Net loans | 513,205 | 464,027 | |||||
Commercial Real Estate [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | 260,900 | 243,623 | 221,175 | ||||
Allowance for loan losses | 3,831 | 3,834 | 3,657 | 3,575 | |||
Commercial Real Estate [Member] | Mortgages [Member] | Commercial and Industrial Sector [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | 87,613 | 95,914 | |||||
Commercial Real Estate [Member] | Mortgages [Member] | Agricultural Sector [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | 158,321 | 140,322 | |||||
Commercial Real Estate [Member] | Construction [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | 14,966 | 7,387 | |||||
Consumer Real Estate [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | 181,200 | [1] | 163,266 | [1] | 159,239 | ||
Allowance for loan losses | 1,403 | 1,367 | 1,346 | 1,510 | |||
Consumer Real Estate [Member] | Mortgages [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | [1] | 133,538 | 123,395 | ||||
Consumer Real Estate [Member] | Home Equity Loan [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | [1] | 10,288 | 12,563 | ||||
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | [1] | 37,374 | 27,308 | ||||
Commercial and Industrial [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | 73,577 | 60,300 | 53,395 | ||||
Allowance for loan losses | 1,314 | 1,301 | 1,416 | 1,640 | |||
Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | 36,189 | 31,998 | |||||
Commercial and Industrial [Member] | Government Sector [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | 19,083 | 11,806 | |||||
Commercial and Industrial [Member] | Agricultural Sector [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | 18,305 | 16,496 | |||||
Consumer [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred costs and allowance for loan losses | 3,892 | 3,517 | 4,063 | ||||
Allowance for loan losses | $ 62 | $ 66 | $ 102 | $ 61 | |||
[1] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $38,024,000 and $16,670,000 as of December 31, 2015, and 2014, respectively. |
LOANS AND ALLOWANCE FOR LOAN 56
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Commercial and Consumer Credit Exposure) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Gross loans prior to deferred fees | $ 519,569 | $ 470,706 | $ 437,872 |
Commercial Real Estate [Member] | |||
Gross loans prior to deferred fees | 260,900 | 243,623 | 221,175 |
Commercial and Industrial [Member] | |||
Gross loans prior to deferred fees | 73,577 | 60,300 | $ 53,395 |
Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | |||
Gross loans prior to deferred fees | 36,189 | 31,998 | |
Commercial and Industrial [Member] | Government Sector [Member] | |||
Gross loans prior to deferred fees | 19,083 | 11,806 | |
Commercial and Industrial [Member] | Agricultural Sector [Member] | |||
Gross loans prior to deferred fees | 18,305 | 16,496 | |
Pass [Member] | Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | |||
Gross loans prior to deferred fees | 35,416 | 31,006 | |
Pass [Member] | Commercial and Industrial [Member] | Government Sector [Member] | |||
Gross loans prior to deferred fees | 19,083 | 11,806 | |
Pass [Member] | Commercial and Industrial [Member] | Agricultural Sector [Member] | |||
Gross loans prior to deferred fees | $ 17,860 | 16,255 | |
Special Mention [Member] | Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | |||
Gross loans prior to deferred fees | $ 29 | ||
Special Mention [Member] | Commercial and Industrial [Member] | Government Sector [Member] | |||
Gross loans prior to deferred fees | |||
Special Mention [Member] | Commercial and Industrial [Member] | Agricultural Sector [Member] | |||
Gross loans prior to deferred fees | $ 125 | $ 29 | |
Substandard [Member] | Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | |||
Gross loans prior to deferred fees | $ 773 | $ 963 | |
Substandard [Member] | Commercial and Industrial [Member] | Government Sector [Member] | |||
Gross loans prior to deferred fees | |||
Substandard [Member] | Commercial and Industrial [Member] | Agricultural Sector [Member] | |||
Gross loans prior to deferred fees | $ 320 | $ 212 | |
Doubtful [Member] | Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | |||
Gross loans prior to deferred fees | |||
Doubtful [Member] | Commercial and Industrial [Member] | Government Sector [Member] | |||
Gross loans prior to deferred fees | |||
Doubtful [Member] | Commercial and Industrial [Member] | Agricultural Sector [Member] | |||
Gross loans prior to deferred fees | |||
Loss [Member] | Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | |||
Gross loans prior to deferred fees | |||
Loss [Member] | Commercial and Industrial [Member] | Government Sector [Member] | |||
Gross loans prior to deferred fees | |||
Loss [Member] | Commercial and Industrial [Member] | Agricultural Sector [Member] | |||
Gross loans prior to deferred fees | |||
Commercial Borrower [Member] | |||
Gross loans prior to deferred fees | $ 334,477 | $ 303,923 | |
Commercial Borrower [Member] | Pass [Member] | |||
Gross loans prior to deferred fees | 322,553 | 282,193 | |
Commercial Borrower [Member] | Special Mention [Member] | |||
Gross loans prior to deferred fees | 1,259 | 5,944 | |
Commercial Borrower [Member] | Substandard [Member] | |||
Gross loans prior to deferred fees | $ 10,665 | $ 15,786 | |
Commercial Borrower [Member] | Doubtful [Member] | |||
Gross loans prior to deferred fees | |||
Commercial Borrower [Member] | Loss [Member] | |||
Gross loans prior to deferred fees | |||
Mortgages [Member] | Commercial Real Estate [Member] | Commercial and Industrial Sector [Member] | |||
Gross loans prior to deferred fees | $ 87,613 | $ 95,914 | |
Mortgages [Member] | Commercial Real Estate [Member] | Agricultural Sector [Member] | |||
Gross loans prior to deferred fees | 158,321 | 140,322 | |
Mortgages [Member] | Pass [Member] | Commercial Real Estate [Member] | Commercial and Industrial Sector [Member] | |||
Gross loans prior to deferred fees | 81,865 | 82,478 | |
Mortgages [Member] | Pass [Member] | Commercial Real Estate [Member] | Agricultural Sector [Member] | |||
Gross loans prior to deferred fees | 154,507 | 135,298 | |
Mortgages [Member] | Special Mention [Member] | Commercial Real Estate [Member] | Commercial and Industrial Sector [Member] | |||
Gross loans prior to deferred fees | 511 | 2,649 | |
Mortgages [Member] | Special Mention [Member] | Commercial Real Estate [Member] | Agricultural Sector [Member] | |||
Gross loans prior to deferred fees | 623 | 3,237 | |
Mortgages [Member] | Substandard [Member] | Commercial Real Estate [Member] | Commercial and Industrial Sector [Member] | |||
Gross loans prior to deferred fees | 5,237 | 10,787 | |
Mortgages [Member] | Substandard [Member] | Commercial Real Estate [Member] | Agricultural Sector [Member] | |||
Gross loans prior to deferred fees | $ 3,191 | $ 1,787 | |
Mortgages [Member] | Doubtful [Member] | Commercial Real Estate [Member] | Commercial and Industrial Sector [Member] | |||
Gross loans prior to deferred fees | |||
Mortgages [Member] | Doubtful [Member] | Commercial Real Estate [Member] | Agricultural Sector [Member] | |||
Gross loans prior to deferred fees | |||
Mortgages [Member] | Loss [Member] | Commercial Real Estate [Member] | Commercial and Industrial Sector [Member] | |||
Gross loans prior to deferred fees | |||
Mortgages [Member] | Loss [Member] | Commercial Real Estate [Member] | Agricultural Sector [Member] | |||
Gross loans prior to deferred fees | |||
Construction [Member] | Commercial Real Estate [Member] | |||
Gross loans prior to deferred fees | $ 14,966 | $ 7,387 | |
Construction [Member] | Pass [Member] | Commercial Real Estate [Member] | |||
Gross loans prior to deferred fees | $ 13,822 | $ 5,350 | |
Construction [Member] | Special Mention [Member] | Commercial Real Estate [Member] | |||
Gross loans prior to deferred fees | |||
Construction [Member] | Substandard [Member] | Commercial Real Estate [Member] | |||
Gross loans prior to deferred fees | $ 1,144 | $ 2,037 | |
Construction [Member] | Doubtful [Member] | Commercial Real Estate [Member] | |||
Gross loans prior to deferred fees | |||
Construction [Member] | Loss [Member] | Commercial Real Estate [Member] | |||
Gross loans prior to deferred fees |
LOANS AND ALLOWANCE FOR LOAN 57
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Credit Risk Profile by Payment Performance) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Gross loans prior to deferred fees | $ 519,569 | $ 470,706 | $ 437,872 | |||
Consumer Borrower [Member] | ||||||
Gross loans prior to deferred fees | 185,092 | 166,783 | ||||
Residential Portfolio Segment [Member] | ||||||
Gross loans prior to deferred fees | 181,200 | [1] | 163,266 | [1] | 159,239 | |
Consumer Portfolio Segment [Member] | ||||||
Gross loans prior to deferred fees | 3,892 | 3,517 | $ 4,063 | |||
Performing [Member] | Consumer Borrower [Member] | ||||||
Gross loans prior to deferred fees | 184,714 | 166,399 | ||||
Performing [Member] | Consumer Portfolio Segment [Member] | ||||||
Gross loans prior to deferred fees | 3,889 | 3,517 | ||||
Nonperforming [Member] | Consumer Borrower [Member] | ||||||
Gross loans prior to deferred fees | 378 | $ 384 | ||||
Nonperforming [Member] | Consumer Portfolio Segment [Member] | ||||||
Gross loans prior to deferred fees | 3 | |||||
Mortgages [Member] | Residential Portfolio Segment [Member] | ||||||
Gross loans prior to deferred fees | [1] | 133,538 | $ 123,395 | |||
Mortgages [Member] | Performing [Member] | Residential Portfolio Segment [Member] | ||||||
Gross loans prior to deferred fees | 133,220 | 123,023 | ||||
Mortgages [Member] | Nonperforming [Member] | Residential Portfolio Segment [Member] | ||||||
Gross loans prior to deferred fees | 318 | 372 | ||||
Home Equity Loan [Member] | Residential Portfolio Segment [Member] | ||||||
Gross loans prior to deferred fees | [1] | 10,288 | 12,563 | |||
Home Equity Loan [Member] | Performing [Member] | Residential Portfolio Segment [Member] | ||||||
Gross loans prior to deferred fees | 10,278 | 12,551 | ||||
Home Equity Loan [Member] | Nonperforming [Member] | Residential Portfolio Segment [Member] | ||||||
Gross loans prior to deferred fees | 10 | 12 | ||||
Home Equity Lines of Credit [Member] | Residential Portfolio Segment [Member] | ||||||
Gross loans prior to deferred fees | [1] | 37,374 | 27,308 | |||
Home Equity Lines of Credit [Member] | Performing [Member] | Residential Portfolio Segment [Member] | ||||||
Gross loans prior to deferred fees | 37,327 | $ 27,308 | ||||
Home Equity Lines of Credit [Member] | Nonperforming [Member] | Residential Portfolio Segment [Member] | ||||||
Gross loans prior to deferred fees | $ 47 | |||||
[1] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $38,024,000 and $16,670,000 as of December 31, 2015, and 2014, respectively. |
LOANS AND ALLOWANCE FOR LOAN 58
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Aging of Loans Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | $ 2,550 | $ 2,076 | ||||
Current | 517,019 | 468,630 | ||||
Total Loans Receivable | 519,569 | 470,706 | $ 437,872 | |||
Loans Receivable - Greater than 90 Days and Accruing | 378 | 384 | ||||
30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 1,363 | 800 | ||||
60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 809 | 626 | ||||
Greater than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 378 | 650 | ||||
Commercial Real Estate [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Loans Receivable | 260,900 | 243,623 | 221,175 | |||
Commercial Real Estate [Member] | Mortgages [Member] | Commercial and Industrial Sector [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 601 | 455 | ||||
Current | 87,012 | 95,459 | ||||
Total Loans Receivable | $ 87,613 | $ 95,914 | ||||
Loans Receivable - Greater than 90 Days and Accruing | ||||||
Commercial Real Estate [Member] | Mortgages [Member] | Commercial and Industrial Sector [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Commercial Real Estate [Member] | Mortgages [Member] | Commercial and Industrial Sector [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | $ 601 | $ 189 | ||||
Commercial Real Estate [Member] | Mortgages [Member] | Commercial and Industrial Sector [Member] | Greater than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | $ 266 | |||||
Commercial Real Estate [Member] | Mortgages [Member] | Agricultural Sector [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Current | $ 158,321 | $ 140,322 | ||||
Total Loans Receivable | $ 158,321 | $ 140,322 | ||||
Loans Receivable - Greater than 90 Days and Accruing | ||||||
Commercial Real Estate [Member] | Mortgages [Member] | Agricultural Sector [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Commercial Real Estate [Member] | Mortgages [Member] | Agricultural Sector [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Commercial Real Estate [Member] | Mortgages [Member] | Agricultural Sector [Member] | Greater than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Commercial Real Estate [Member] | Construction [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Current | $ 14,966 | $ 7,387 | ||||
Total Loans Receivable | $ 14,966 | $ 7,387 | ||||
Loans Receivable - Greater than 90 Days and Accruing | ||||||
Commercial Real Estate [Member] | Construction [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Commercial Real Estate [Member] | Construction [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Commercial Real Estate [Member] | Construction [Member] | Greater than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Consumer Real Estate [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Loans Receivable | $ 181,200 | [1] | $ 163,266 | [1] | 159,239 | |
Consumer Real Estate [Member] | Mortgages [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 1,705 | 1,386 | ||||
Current | 131,833 | 122,009 | ||||
Total Loans Receivable | [1] | 133,538 | 123,395 | |||
Loans Receivable - Greater than 90 Days and Accruing | 318 | 372 | ||||
Consumer Real Estate [Member] | Mortgages [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 1,264 | 665 | ||||
Consumer Real Estate [Member] | Mortgages [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 123 | 349 | ||||
Consumer Real Estate [Member] | Mortgages [Member] | Greater than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 318 | 372 | ||||
Consumer Real Estate [Member] | Home Equity Loan [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 96 | 104 | ||||
Current | 10,192 | 12,459 | ||||
Total Loans Receivable | [1] | 10,288 | 12,563 | |||
Loans Receivable - Greater than 90 Days and Accruing | 10 | 12 | ||||
Consumer Real Estate [Member] | Home Equity Loan [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 27 | 78 | ||||
Consumer Real Estate [Member] | Home Equity Loan [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 59 | 14 | ||||
Consumer Real Estate [Member] | Home Equity Loan [Member] | Greater than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 10 | 12 | ||||
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 82 | 13 | ||||
Current | 37,292 | 27,295 | ||||
Total Loans Receivable | [1] | 37,374 | $ 27,308 | |||
Loans Receivable - Greater than 90 Days and Accruing | 47 | |||||
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | $ 35 | $ 13 | ||||
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | Greater than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | $ 47 | |||||
Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Loans Receivable | 73,577 | $ 60,300 | 53,395 | |||
Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 29 | 94 | ||||
Current | 36,160 | 31,904 | ||||
Total Loans Receivable | $ 36,189 | $ 31,998 | ||||
Loans Receivable - Greater than 90 Days and Accruing | ||||||
Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | $ 20 | $ 21 | ||||
Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | $ 9 | $ 73 | ||||
Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | Greater than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Commercial and Industrial [Member] | Government Sector [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Current | $ 19,083 | $ 11,806 | ||||
Total Loans Receivable | $ 19,083 | $ 11,806 | ||||
Loans Receivable - Greater than 90 Days and Accruing | ||||||
Commercial and Industrial [Member] | Government Sector [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Commercial and Industrial [Member] | Government Sector [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Commercial and Industrial [Member] | Government Sector [Member] | Greater than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Commercial and Industrial [Member] | Agricultural Sector [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Current | $ 18,305 | $ 16,496 | ||||
Total Loans Receivable | $ 18,305 | $ 16,496 | ||||
Loans Receivable - Greater than 90 Days and Accruing | ||||||
Commercial and Industrial [Member] | Agricultural Sector [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Commercial and Industrial [Member] | Agricultural Sector [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Commercial and Industrial [Member] | Agricultural Sector [Member] | Greater than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | ||||||
Consumer Portfolio Segment [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | $ 37 | $ 24 | ||||
Current | 3,855 | 3,493 | ||||
Total Loans Receivable | 3,892 | $ 3,517 | $ 4,063 | |||
Loans Receivable - Greater than 90 Days and Accruing | 3 | |||||
Consumer Portfolio Segment [Member] | 30-59 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 17 | $ 23 | ||||
Consumer Portfolio Segment [Member] | 60-89 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | 17 | $ 1 | ||||
Consumer Portfolio Segment [Member] | Greater than 90 Days Past Due [Member] | ||||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||||
Total Past Due | $ 3 | |||||
[1] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $38,024,000 and $16,670,000 as of December 31, 2015, and 2014, respectively. |
LOANS AND ALLOWANCE FOR LOAN 59
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Nonaccrual Loans by Class) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | $ 380 | $ 967 |
Commercial Real Estate [Member] | Mortgages [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | $ 380 | $ 894 |
Commercial Real Estate [Member] | Mortgages [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | ||
Commercial Real Estate [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | ||
Consumer Real Estate [Member] | Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | ||
Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | ||
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | ||
Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | $ 73 | |
Commercial and Industrial [Member] | Government Sector [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | ||
Commercial and Industrial [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | ||
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans |
LOANS AND ALLOWANCE FOR LOAN 60
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Impaired Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Total impaired loans | |||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 1,705 | $ 2,209 | $ 2,693 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 149 | ||
Impaired Financing Receivable, Related Allowance | 1 | ||
Average Recorded Investment | $ 1,957 | 2,624 | $ 2,827 |
Interest Income Recognized | $ 86 | $ 110 | $ 113 |
LOANS AND ALLOWANCE FOR LOAN 61
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Impaired Loans by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loans with no related allowance recorded: | |||
Recorded Investment | $ 1,705 | $ 2,209 | $ 2,693 |
Unpaid Principal Balance | 2,326 | 2,395 | |
Average Recorded Investment | 1,957 | 2,556 | |
Interest Income Recognized | $ 86 | 110 | |
Loans with an allowance recorded: | |||
Recorded Investment | 149 | ||
Unpaid Principal Balance | 264 | ||
Related Allowance | 1 | ||
Average Recorded Investment | $ 68 | ||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | $ 1,705 | $ 2,358 | |
Unpaid Principal Balance | 2,326 | 2,659 | |
Average Recorded Investment | 1,957 | 2,624 | $ 2,827 |
Interest Income Recognized | 86 | 110 | $ 113 |
Commercial Real Estate [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | 1,705 | 2,136 | |
Unpaid Principal Balance | 2,277 | 2,322 | |
Average Recorded Investment | 1,903 | 2,470 | |
Interest Income Recognized | $ 83 | 104 | |
Loans with an allowance recorded: | |||
Recorded Investment | 149 | ||
Unpaid Principal Balance | 264 | ||
Related Allowance | 1 | ||
Average Recorded Investment | $ 68 | ||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | $ 1,705 | $ 2,285 | |
Unpaid Principal Balance | 2,277 | 2,586 | |
Average Recorded Investment | 1,903 | 2,538 | |
Interest Income Recognized | 83 | 104 | |
Commercial Real Estate [Member] | Mortgages [Member] | Commercial and Industrial Sector [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | 380 | 745 | |
Unpaid Principal Balance | 952 | 931 | |
Average Recorded Investment | $ 544 | $ 931 | |
Interest Income Recognized | |||
Loans with an allowance recorded: | |||
Recorded Investment | $ 149 | ||
Unpaid Principal Balance | 264 | ||
Related Allowance | 1 | ||
Average Recorded Investment | $ 68 | ||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | $ 380 | $ 894 | |
Unpaid Principal Balance | 952 | 1,195 | |
Average Recorded Investment | $ 544 | $ 999 | |
Interest Income Recognized | |||
Commercial Real Estate [Member] | Mortgages [Member] | Agricultural Sector [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | $ 1,325 | $ 1,391 | |
Unpaid Principal Balance | 1,325 | 1,391 | |
Average Recorded Investment | 1,359 | 1,539 | |
Interest Income Recognized | $ 83 | $ 104 | |
Loans with an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | $ 1,325 | $ 1,391 | |
Unpaid Principal Balance | 1,325 | 1,391 | |
Average Recorded Investment | 1,359 | 1,539 | |
Interest Income Recognized | $ 83 | $ 104 | |
Commercial Real Estate [Member] | Construction [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Loans with an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Commercial and Industrial [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | $ 73 | ||
Unpaid Principal Balance | $ 49 | 73 | |
Average Recorded Investment | 54 | 86 | |
Interest Income Recognized | $ 3 | $ 6 | |
Loans with an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | $ 73 | ||
Unpaid Principal Balance | $ 49 | 73 | |
Average Recorded Investment | 54 | 86 | |
Interest Income Recognized | $ 3 | 6 | |
Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | 73 | ||
Unpaid Principal Balance | $ 49 | 73 | |
Average Recorded Investment | 54 | 86 | |
Interest Income Recognized | $ 3 | $ 6 | |
Loans with an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | $ 73 | ||
Unpaid Principal Balance | $ 49 | 73 | |
Average Recorded Investment | 54 | 86 | |
Interest Income Recognized | $ 3 | $ 6 | |
Commercial and Industrial [Member] | Government Sector [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Loans with an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Commercial and Industrial [Member] | Agricultural Sector [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Loans with an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Average Recorded Investment | |||
Interest Income Recognized |
LOANS AND ALLOWANCE FOR LOAN 62
LOANS AND ALLOWANCE FOR LOAN LOSSES (Schedule of Schedule of Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Allowance for loan losses. beginning balance | $ 7,141 | $ 7,219 | $ 7,516 | |||||
Charge-offs | (362) | (235) | (147) | |||||
Recoveries | 149 | 207 | 75 | |||||
Provision (credit) | 150 | (50) | (225) | |||||
Allowance for loan losses, ending balance | 7,078 | 7,141 | 7,219 | |||||
Allowance for credit losses: | ||||||||
Ending balance | 7,078 | 7,141 | 7,219 | $ 7,078 | $ 7,141 | $ 7,219 | ||
Individually evaluated for impairment | 1 | |||||||
Collectively evaluated for impairment | $ 7,078 | 7,140 | $ 7,219 | |||||
Loans receivable ending balance: | ||||||||
Total Loans Receivable | 519,569 | 470,706 | 437,872 | |||||
Individually evaluated for impairment | 1,705 | 2,358 | 2,693 | |||||
Collectively evaluated for impairment | 517,864 | 468,348 | 435,179 | |||||
Commercial Real Estate [Member] | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Allowance for loan losses. beginning balance | 3,834 | 3,657 | $ 3,575 | |||||
Charge-offs | (272) | $ (204) | ||||||
Recoveries | 34 | |||||||
Provision (credit) | 235 | $ 381 | $ 82 | |||||
Allowance for loan losses, ending balance | 3,831 | 3,834 | 3,657 | |||||
Allowance for credit losses: | ||||||||
Ending balance | 3,834 | 3,834 | 3,657 | $ 3,831 | 3,834 | $ 3,657 | ||
Individually evaluated for impairment | 1 | |||||||
Collectively evaluated for impairment | $ 3,831 | 3,833 | $ 3,657 | |||||
Loans receivable ending balance: | ||||||||
Total Loans Receivable | 260,900 | 243,623 | 221,175 | |||||
Individually evaluated for impairment | 1,705 | 2,285 | 2,584 | |||||
Collectively evaluated for impairment | 259,195 | 241,338 | 218,591 | |||||
Consumer Real Estate [Member] | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Allowance for loan losses. beginning balance | 1,367 | $ 1,346 | 1,510 | |||||
Charge-offs | $ (28) | $ (84) | ||||||
Recoveries | $ 5 | |||||||
Provision (credit) | $ 64 | 16 | $ (80) | |||||
Allowance for loan losses, ending balance | 1,403 | 1,367 | 1,346 | |||||
Allowance for credit losses: | ||||||||
Ending balance | 1,367 | 1,367 | 1,346 | $ 1,403 | $ 1,367 | $ 1,346 | ||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | $ 1,403 | $ 1,367 | $ 1,346 | |||||
Loans receivable ending balance: | ||||||||
Total Loans Receivable | $ 181,200 | [1] | $ 163,266 | [1] | $ 159,239 | |||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | $ 181,200 | $ 163,266 | $ 159,239 | |||||
Commercial and Industrial [Member] | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Allowance for loan losses. beginning balance | 1,301 | 1,416 | 1,640 | |||||
Charge-offs | (44) | (12) | (41) | |||||
Recoveries | 112 | 201 | 74 | |||||
Provision (credit) | (55) | (304) | (257) | |||||
Allowance for loan losses, ending balance | 1,314 | 1,301 | 1,416 | |||||
Allowance for credit losses: | ||||||||
Ending balance | 1,301 | 1,301 | 1,416 | $ 1,314 | $ 1,301 | $ 1,416 | ||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | $ 1,314 | $ 1,301 | $ 1,416 | |||||
Loans receivable ending balance: | ||||||||
Total Loans Receivable | $ 73,577 | 60,300 | 53,395 | |||||
Individually evaluated for impairment | 73 | 109 | ||||||
Collectively evaluated for impairment | $ 73,577 | 60,227 | 53,286 | |||||
Consumer [Member] | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Allowance for loan losses. beginning balance | 66 | 102 | 61 | |||||
Charge-offs | (18) | (19) | (22) | |||||
Recoveries | 3 | 1 | 1 | |||||
Provision (credit) | 11 | (18) | 62 | |||||
Allowance for loan losses, ending balance | 62 | 66 | 102 | |||||
Allowance for credit losses: | ||||||||
Ending balance | 66 | 66 | 102 | $ 62 | $ 66 | $ 102 | ||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | $ 62 | $ 66 | $ 102 | |||||
Loans receivable ending balance: | ||||||||
Total Loans Receivable | $ 3,892 | $ 3,517 | $ 4,063 | |||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | $ 3,892 | $ 3,517 | $ 4,063 | |||||
Unallocated [Member] | ||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Allowance for loan losses. beginning balance | $ 573 | $ 698 | $ 730 | |||||
Charge-offs | ||||||||
Recoveries | ||||||||
Provision (credit) | $ (105) | $ (125) | $ (32) | |||||
Allowance for loan losses, ending balance | 468 | 573 | 698 | |||||
Allowance for credit losses: | ||||||||
Ending balance | $ 573 | $ 573 | $ 698 | $ 468 | $ 573 | $ 698 | ||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | $ 468 | $ 573 | $ 698 | |||||
[1] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $38,024,000 and $16,670,000 as of December 31, 2015, and 2014, respectively. |
PREMISES AND EQUIPMENT (Narrati
PREMISES AND EQUIPMENT (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
PREMISES AND EQUIPMENT [Abstract] | |||
Depreciation | $ 1,440,000 | $ 1,356,000 | $ 1,205,000 |
PREMISES AND EQUIPMENT (Schedul
PREMISES AND EQUIPMENT (Schedule of Premises and Equipment and Accumulated Depreciation) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Premises and equipment, gross | $ 40,972 | $ 40,376 |
Less accumulated depreciation | 19,276 | 17,929 |
Premises and equipment, net | 21,696 | 22,447 |
Land [Member] | ||
Premises and equipment, gross | 3,687 | 3,687 |
Buildings and improvements [Member] | ||
Premises and equipment, gross | 24,699 | 24,619 |
Furniture and Equipment [Member] | ||
Premises and equipment, gross | 12,423 | 11,926 |
Construction in Process [Member] | ||
Premises and equipment, gross | $ 163 | $ 144 |
REGULATORY STOCK (Narrative) (D
REGULATORY STOCK (Narrative) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
REGULATORY STOCK [Abstract] | ||
Federal Home Loan Bank Stock | $ 4,126,000 | $ 3,039,000 |
Federal Reserve Bank Stock | 151,000 | 151,000 |
Atlantic Community Bankers' Bank Stock | $ 37,000 | $ 37,000 |
Federal Home Loan Bank quarterly dividend yield, annualized on activity stock | 5.00% | |
Federal Home Loan Bank quarterly dividend yield, annualized on membership stock | 3.00% |
DEPOSITS (Schedule of Deposits
DEPOSITS (Schedule of Deposits by Major Classification) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
DEPOSITS [Abstract] | ||
Non-interest bearing demand | $ 236,214 | $ 210,444 |
Interest-bearing demand | 14,737 | 14,039 |
NOW accounts | 77,180 | 72,951 |
Money market deposit accounts | 82,507 | 69,442 |
Savings accounts | 148,320 | 131,206 |
Time deposits under $250,000 | 165,939 | 179,053 |
Time deposits of $250,000 or more | 15,165 | 22,516 |
Total deposits | $ 740,062 | $ 699,651 |
DEPOSITS (Schedule of Maturitie
DEPOSITS (Schedule of Maturities of Time Deposits) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Maturities of time deposits | |
2,016 | $ 95,182 |
2,017 | 27,927 |
2,018 | 19,994 |
2,019 | 18,893 |
2,020 | 19,108 |
Total | $ 181,104 |
SHORT TERM BORROWINGS (Narrativ
SHORT TERM BORROWINGS (Narrative) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Federal Fund Lines [Member] | |
Amount of borrowings available | $ 32 |
FRB Discount Window [Member] | |
Amount of borrowings available | $ 30.4 |
SHORT TERM BORROWINGS (Schedule
SHORT TERM BORROWINGS (Schedule of Short-Term Borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Total short-term borrowings outstanding at year end | $ 8,736 | $ 3,900 | |
Short-term Borrowings [Member] | |||
Average interest rate at year end | 0.29% | 0.35% | |
Maximum outstanding at any month end | $ 13,666 | $ 7,260 | $ 5,527 |
Average amount outstanding for the year | $ 8,720 | $ 5,513 | $ 1,637 |
Weighted-average interest rate for the year | 0.34% | 0.19% | 0.14% |
OTHER BORROWED FUNDS (Narrative
OTHER BORROWED FUNDS (Narrative) (Details) - Federal Home Loan Bank Advances [Member] $ in Millions | Dec. 31, 2015USD ($) |
Maximum borrowing capacity | $ 304.7 |
Amount available to be borrowed | 236.4 |
FHLB convertible advance outstanding | $ 0 |
OTHER BORROWED FUNDS (Schedule
OTHER BORROWED FUNDS (Schedule of Maturities of other borrowings) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Total Other Borrowings | ||
Long-term debt | $ 59,594 | $ 62,300 |
Other Borrowed Funds [Member] | ||
Total Other Borrowings | ||
Weighted average rate | 1.53% | 2.12% |
FHLB Fixed Rate Loans 1 [Member] | ||
Federal Home Loan bank Advances | ||
Maturity Year | 2,015 | 2,015 |
Federal Home Loan Bank Advances | $ 3,000 | |
Average interest rate at year end | 2.21% | |
FHLB Fixed Rate Loans 2 [Member] | ||
Federal Home Loan bank Advances | ||
Maturity Year | 2,016 | 2,016 |
Federal Home Loan Bank Advances | $ 15,500 | $ 15,500 |
Average interest rate at year end | 1.93% | 1.93% |
FHLB Fixed Rate Loans 3 [Member] | ||
Federal Home Loan bank Advances | ||
Maturity Year | 2,017 | 2,017 |
Federal Home Loan Bank Advances | $ 15,000 | $ 15,000 |
Average interest rate at year end | 1.26% | 1.26% |
FHLB Fixed Rate Loans 4 [Member] | ||
Federal Home Loan bank Advances | ||
Maturity Year | 2,018 | 2,018 |
Federal Home Loan Bank Advances | $ 11,650 | $ 11,650 |
Average interest rate at year end | 1.22% | 1.22% |
FHLB Fixed Rate Loans 5 [Member] | ||
Federal Home Loan bank Advances | ||
Maturity Year | 2,019 | 2,019 |
Federal Home Loan Bank Advances | $ 6,767 | $ 4,650 |
Average interest rate at year end | 1.68% | 1.80% |
FHLB Fixed Rate Loans 6 [Member] | ||
Federal Home Loan bank Advances | ||
Maturity Year | 2,020 | 2,020 |
Federal Home Loan Bank Advances | $ 10,677 | |
Average interest rate at year end | 1.59% | |
FHLB Convertible Loans 2 [Member] | ||
Federal Home Loan bank Advances | ||
Maturity Year | 2,015 | 2,015 |
Federal Home Loan Bank Advances | $ 2,500 | |
Average interest rate at year end | 4.17% | |
Securities Sold under Agreements to Repurchase 2 [Member] | ||
Repurchase Agreements | ||
Maturity Date | 2,015 | 2,015 |
Repurchase agreements | $ 10,000 | |
Weighted-Average Interest Rate | 4.37% |
OTHER BORROWED FUNDS (Schedul72
OTHER BORROWED FUNDS (Schedule of repurchase agreements) (Details) - Securities Sold under Agreements to Repurchase [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Repurchase agreements | $ 10,000 | $ 15,000 | |
Average interest rate at year end | 4.37% | 4.50% | |
Maximum outstanding at any month end | $ 10,000 | $ 15,000 | $ 15,000 |
Average amount outstanding for the year | $ 5,863 | $ 12,904 | $ 15,000 |
Weighted-average interest rate for the year | 4.74% | 4.52% | 4.50% |
CAPITAL TRANSACTIONS (Details)
CAPITAL TRANSACTIONS (Details) - USD ($) | 6 Months Ended | 12 Months Ended | 72 Months Ended | 132 Months Ended | 180 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | Jun. 17, 2015 | |
CAPITAL TRANSACTIONS [Abstract] | ||||||||
Stock buyback plan authorized | 140,000 | |||||||
Weighted-average cost per share of shares repurchased | $ 32.73 | |||||||
Share discount via stock purchase plan | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |||
Treasury stock purchased, shares | 12,135 | 22,935 | 15,650 | 12,200 | ||||
Treasury stock issued, shares | 15,623 | 16,460 | 16,274 | |||||
Shares issued under Employee Stock Purchase Plan (ESPP) | 7,527 | 7,967 | 85,610 | |||||
Shares issued under Dividend Reinvestment Plan (DRP) | 6,371 | 6,754 | 78,804 | |||||
Shares issued under Directors' Stock Purchase Plan | 1,725 | 1,739 | 13,112 | |||||
Treasury shares | 20,033 | 20,033 | 12,721 | 20,033 | 20,033 | 20,033 | ||
Weighted-average cost per share of treasury stock | $ 32.16 | $ 32.16 | $ 32.16 | $ 32.16 | $ 32.16 | |||
Cost basis of treasury shares | $ 644,000 | $ 644,000 | $ 644,000 | $ 644,000 | $ 644,000 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Contribution, percentage | 7.50% | ||
Pension Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Covered compensation limit of the defined contribution pension plan | $ 265,000 | $ 260,000 | $ 255,000 |
Expenses recognized for defined contribution plans | $ 497,000 | 470,000 | 422,000 |
Contribution, percentage | 5.00% | ||
Pension Plan [Member] | Employees Above Social Security Wage Base [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Expenses recognized for defined contribution plans | $ 118,500 | 117,000 | |
Contribution, percentage | 5.00% | ||
401(k) Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Expenses recognized for defined contribution plans | $ 225,000 | 219,000 | 186,000 |
Contribution, percentage | 5.00% | ||
Matching contribution, percentage of match | 50.00% | ||
Effective contribution rate | 2.50% | ||
401(k) Plan [Member] | Participants Under Age 50 [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum contribution to plans | $ 18,000 | 17,500 | 17,500 |
401(k) Plan [Member] | Participants Over Age 50 [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Maximum contribution to plans | $ 24,000 | $ 23,000 | $ 23,000 |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
DEFERRED COMPENSATION [Abstract] | |||
Life insurance policies, aggregate face amount | $ 3,409,000 | $ 3,409,000 | |
Death benefits of life insurance policies | 6,399,000 | 6,399,000 | |
Cash surrender value of life insurance policies | 4,516,000 | 4,311,000 | |
Net present value of deferred life insurance payments | $ 435,000 | $ 585,000 | |
Discount rate used in net present value calculation | 4.50% | 4.50% | 4.50% |
Deferred compensation expense | $ 23,000 | $ 29,000 | $ 36,000 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
INCOME TAXES [Abstract] | |||
Valuation allowance | $ 13,000 | $ 25,000 | $ 42,000 |
Alternative minimum tax credits | $ 1,085,000 | $ 996,000 | $ 1,137,000 |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income Tax Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INCOME TAXES [Abstract] | |||||||||||||||
Income tax at statutory rate | $ 2,811 | $ 2,937 | $ 3,132 | ||||||||||||
Tax-exempt interest income | (1,270) | (1,266) | (1,498) | ||||||||||||
Non-deductible interest expense | 39 | 49 | 61 | ||||||||||||
Bank-owned life insurance | (247) | (218) | (217) | ||||||||||||
Other | 25 | 44 | 23 | ||||||||||||
Income tax expense | $ 455 | $ 382 | $ 278 | $ 243 | $ 463 | $ 337 | $ 347 | $ 399 | $ 543 | $ 274 | $ 292 | $ 392 | $ 1,358 | $ 1,546 | $ 1,501 |
Income tax at statutory rate, rate | 34.00% | 34.00% | 34.00% | ||||||||||||
Tax-exempt interest income, rate | (15.40%) | (14.70%) | (16.30%) | ||||||||||||
Non-deductible interest expense, rate | 0.50% | 0.60% | 0.70% | ||||||||||||
Bank-owned life insurance, rate | (3.00%) | (2.50%) | (2.30%) | ||||||||||||
Other, rate | 0.30% | 0.50% | 0.20% | ||||||||||||
Income tax expense, rate | 16.40% | 17.90% | 16.30% |
INCOME TAXES (Schedule of Compo
INCOME TAXES (Schedule of Components of Income Tax Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
INCOME TAXES [Abstract] | |||||||||||||||
Current tax expense | $ 1,095 | $ 1,032 | $ 1,671 | ||||||||||||
Deferred tax expense (benefit) | 275 | 531 | (174) | ||||||||||||
Valuation allowance adjustment | (12) | (17) | 4 | ||||||||||||
Income tax expense | $ 455 | $ 382 | $ 278 | $ 243 | $ 463 | $ 337 | $ 347 | $ 399 | $ 543 | $ 274 | $ 292 | $ 392 | $ 1,358 | $ 1,546 | $ 1,501 |
INCOME TAXES (Schedule of Com79
INCOME TAXES (Schedule of Components of Corporation's Net Deferred Tax Position) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
INCOME TAXES [Abstract] | |||
Allowance for loan losses | $ 2,406 | $ 2,428 | $ 2,454 |
Net unrealized holding losses on securities available for sale | 130 | 2,030 | |
Deferred compensation reserve | 148 | $ 199 | 248 |
Capital loss carryforward | $ 13 | $ 25 | 42 |
Other than temporary impairment | 106 | ||
Tax credit carryforward | $ 1,085 | $ 996 | 1,137 |
Allowance for off-balance sheet extensions of credit | 155 | 105 | 148 |
Interest on non-accrual loans | 155 | 170 | 164 |
Other | 7 | 6 | 305 |
Total deferred tax assets | 4,099 | 3,929 | 6,634 |
Valuation allowance | (13) | (25) | (42) |
Net deferred taxes | 4,086 | 3,904 | 6,592 |
Deferred tax liabilities | |||
Premises and equipment | $ (1,852) | (1,536) | $ (1,388) |
Net unrealized holding gains on securities available for sale | (516) | ||
Discount on investment securities | $ (1) | $ (1) | $ (61) |
Credit losses on impaired securities | $ (228) | ||
Other | $ (24) | $ (13) | |
Total deferred tax liabilities | (1,877) | (2,066) | $ (1,677) |
Net deferred tax assets | $ 2,209 | $ 1,838 | $ 4,915 |
REGULATORY MATTERS AND RESTRI80
REGULATORY MATTERS AND RESTRICTIONS (Narrative) (Details) $ in Millions | Dec. 31, 2015USD ($) |
REGULATORY MATTERS AND RESTRICTIONS [Abstract] | |
Retained net profits available to pay dividends | $ 7.1 |
REGULATORY MATTERS AND RESTRI81
REGULATORY MATTERS AND RESTRICTIONS (Schedule of Retained Net Profits Available to Pay Dividends) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Consolidated [Member] | ||
Total Capital | ||
Total Capital | $ 102,891 | $ 98,900 |
Total Capital (to risk-weighted assets) ratio | 15.90% | 17.30% |
Amount of capital for adequacy purposes | $ 51,638 | $ 45,650 |
Amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
To be well-capitalized | $ 64,548 | $ 57,063 |
To be well-capitalized, ratio | 10.00% | 10.00% |
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Capital | $ 95,353 | $ 91,755 |
Tier 1 Capital (to risk-weighted assets) ratio | 14.80% | 16.10% |
Amount of Tier 1 Capital for adequacy purposes | $ 38,729 | $ 22,825 |
Amount of Tier 1 Capital for adequacy purposes, ratio | 6.00% | 4.00% |
Tier 1 Capital to be well-capitalized | $ 51,638 | $ 34,238 |
Tier 1 Capital to be well-capitalized, ratio | 8.00% | 6.00% |
Common Equity Tier I Capital (to risk-weighted assets) | ||
Common Equity Tier I Capital | $ 95,353 | |
Common Equity Tier I Capital ratio | 14.80% | |
Amount of Common Equity Tier 1 Capital for adequacy purposes | $ 29,046 | |
Amount of Common Equity Tier 1 Capital for adequacy purposes, ratio | 4.50% | |
Common Equity Tier 1 Capital to be well-capitalized | $ 41,956 | |
Common Equity Tier 1 Capital to be well-capitalized, ratio | 6.50% | |
Tier 1 Leverage Capital (to average assets) | ||
Tier 1 Capital | $ 95,353 | $ 91,755 |
Tier 1 Capital (to average assets) ratio | 10.80% | 10.70% |
Amount of Tier 1 Capital for adequacy purposes | $ 35,358 | $ 34,330 |
Amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 Capital to be well-capitalized | $ 44,198 | $ 42,913 |
Tier 1 Capital to be well-capitalized, ratio | 5.00% | 5.00% |
Bank [Member] | ||
Total Capital | ||
Total Capital | $ 101,791 | $ 97,921 |
Total Capital (to risk-weighted assets) ratio | 15.80% | 17.20% |
Amount of capital for adequacy purposes | $ 51,596 | $ 45,633 |
Amount of capital for adequacy purposes, ratio | 8.00% | 8.00% |
To be well-capitalized | $ 64,495 | $ 57,042 |
To be well-capitalized, ratio | 10.00% | 10.00% |
Tier 1 Capital (to risk-weighted assets) | ||
Tier 1 Capital | $ 94,258 | $ 90,787 |
Tier 1 Capital (to risk-weighted assets) ratio | 14.60% | 15.90% |
Amount of Tier 1 Capital for adequacy purposes | $ 38,697 | $ 22,817 |
Amount of Tier 1 Capital for adequacy purposes, ratio | 6.00% | 4.00% |
Tier 1 Capital to be well-capitalized | $ 51,596 | $ 34,225 |
Tier 1 Capital to be well-capitalized, ratio | 8.00% | 6.00% |
Common Equity Tier I Capital (to risk-weighted assets) | ||
Common Equity Tier I Capital | $ 94,258 | |
Common Equity Tier I Capital ratio | 14.60% | |
Amount of Common Equity Tier 1 Capital for adequacy purposes | $ 29,023 | |
Amount of Common Equity Tier 1 Capital for adequacy purposes, ratio | 4.50% | |
Common Equity Tier 1 Capital to be well-capitalized | $ 41,921 | |
Common Equity Tier 1 Capital to be well-capitalized, ratio | 6.50% | |
Tier 1 Leverage Capital (to average assets) | ||
Tier 1 Capital | $ 94,258 | $ 90,787 |
Tier 1 Capital (to average assets) ratio | 10.70% | 10.60% |
Amount of Tier 1 Capital for adequacy purposes | $ 35,342 | $ 34,324 |
Amount of Tier 1 Capital for adequacy purposes, ratio | 4.00% | 4.00% |
Tier 1 Capital to be well-capitalized | $ 44,178 | $ 42,905 |
Tier 1 Capital to be well-capitalized, ratio | 5.00% | 5.00% |
TRANSACTIONS WITH DIRECTORS A82
TRANSACTIONS WITH DIRECTORS AND OFFICERS (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | |
TRANSACTIONS WITH DIRECTORS AND OFFICERS [Abstract] | ||
Number of executive officers who retired | 2 | |
Number of director whose related interest ownership percentage dropped below the reportable threshold | 1 | |
Related party deposit liabilities | $ | $ 5,282,000 | $ 4,907,000 |
TRANSACTIONS WITH DIRECTORS A83
TRANSACTIONS WITH DIRECTORS AND OFFICERS (Schedule of Related Party Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans to Insiders | ||
Beginning Balance | $ 4,211 | $ 10,432 |
Advances | 2,165 | 1,555 |
Repayments | (2,113) | (1,809) |
Other Changes | (15) | (5,967) |
Ending Balance | $ 4,248 | $ 4,211 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Commitment to extend credit | $ 217.3 | $ 166 |
Loan Commitments [Member] | ||
Commitment to extend credit | 49.1 | 17.9 |
Lines of Credit [Member] | ||
Commitment to extend credit | 156.5 | 138.5 |
Open Letter of Credit [Member] | ||
Commitment to extend credit | $ 11.7 | $ 9.6 |
FINANCIAL INSTRUMENTS WITH CO85
FINANCIAL INSTRUMENTS WITH CONCENTRATIONS OF CREDIT RISK (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loans receivable: | |||
Legal Lending Limit | $ 15,269,000 | $ 14,688,000 | |
Legal Lending Limit, percent | 15.00% | 15.00% | |
Policy Lending Limit | $ 11,451,000 | $ 11,016,000 | |
Policy Lending Limit, percent | 75.00% | 75.00% | |
Loans Receivable, gross | $ 519,569,000 | $ 470,706,000 | $ 437,872,000 |
Securities Available for sale: | |||
Gross Amortized Cost | 289,805,000 | 294,304,000 | |
Value of debt securities below Moody's and/or A- by Standard & Poor's (S&P) rating | $ 696,000 | ||
Percentage of debt securities below Moody's and/or A- by Standard & Poor's (S&P) rating | 0.70% | ||
Maximum par value investment per company | $ 3,000,000 | ||
Obligations of States and Political Subdivisions - State of Texas [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | $ 18,100,000 | ||
Concentration Risk Percentage, as compared to total debt securities | 6.40% | ||
Concentration Risk Percentage, as compared to total municipal securities portfolio | 17.80% | ||
Obligations of States and Political Subdivisions - State of Pennsylvania [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | $ 17,000,000 | ||
Concentration Risk Percentage, as compared to total debt securities | 6.00% | ||
Concentration Risk Percentage, as compared to total municipal securities portfolio | 16.80% | ||
Obligations of States and Political Subdivisions - States of Illinois [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | $ 16,200,000 | ||
Concentration Risk Percentage, as compared to total debt securities | 5.70% | ||
Concentration Risk Percentage, as compared to total municipal securities portfolio | 15.90% | ||
Obligations of State and Political Subdivisions - California [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | $ 10,800,000 | ||
Concentration Risk Percentage, as compared to total debt securities | 3.80% | ||
Concentration Risk Percentage, as compared to total municipal securities portfolio | 10.70% | ||
Corporate Bonds [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | $ 63,825,000 | $ 65,274,000 | |
Concentration Risk Percentage, as compared to total debt securities | 22.40% | ||
Corporate Bonds [Member] | Financial and Brokerage Issuers [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | $ 40,000,000 | ||
Concentration Risk Percentage, as compared to total corporate bond securities | 62.70% | ||
Corporate Bonds [Member] | Non-Financial Commercial Paper [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | $ 23,800,000 | ||
Corporate Bonds [Member] | Non-Financial Commercial Paper [Member] | US Sub-Agency [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 12,700,000 | ||
Corporate Bonds [Member] | Non-Financial Commercial Paper [Member] | Phone Companies [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 2,200,000 | ||
Corporate Bonds [Member] | Non-Financial Commercial Paper [Member] | Foreign Auto [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 2,000,000 | ||
Corporate Bonds [Member] | Non-Financial Commercial Paper [Member] | Foreign Conglomerates [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 1,000,000 | ||
Corporate Bonds [Member] | Non-Financial Commercial Paper [Member] | Farm equipment companies [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 3,000,000 | ||
Corporate Bonds [Member] | Non-Financial Commercial Paper [Member] | Insurance companies [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 2,900,000 | ||
Corporate Bonds [Member] | Domestic Issuers [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 33,500,000 | ||
Corporate Bonds [Member] | Domestic Issuers [Member] | Financial and Brokerage Issuers [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 25,500,000 | ||
Corporate Bonds [Member] | Domestic Issuers [Member] | Financial and Brokerage Issuers [Member] | Commercial Paper - Bank Debt [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 11,600,000 | ||
Corporate Bonds [Member] | Domestic Issuers [Member] | Financial and Brokerage Issuers [Member] | Commercial Paper - Brokerage [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 13,900,000 | ||
Corporate Bonds [Member] | Foreign Issuers [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 17,600,000 | ||
Corporate Bonds [Member] | Foreign Issuers [Member] | Financial and Brokerage Issuers [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 14,500,000 | ||
Corporate Bonds [Member] | Foreign Issuers [Member] | Financial and Brokerage Issuers [Member] | Commercial Paper [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 14,500,000 | ||
Sub-agency Debt [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | 12,700,000 | ||
More Typically Known Corporate Bonds [Member] | |||
Securities Available for sale: | |||
Gross Amortized Cost | $ 51,100,000 | ||
Concentration Risk Percentage, as compared to total debt securities | 18.00% | ||
Maximum percentage of securities portfolio | 20.00% | ||
Total Consumer Real Estate [Member] | |||
Loans receivable: | |||
Loans Receivable, gross | $ 181,200,000 | ||
Total Consumer Real Estate [Member] | Loan [Member] | Credit concentration risk [Member] | |||
Loans receivable: | |||
Concentration risk (as a percentage) | 34.90% | ||
Total Commercial Real Estate [Member] | |||
Loans receivable: | |||
Loans Receivable, gross | $ 260,900,000 | ||
Total Commercial Real Estate [Member] | Loan [Member] | Credit concentration risk [Member] | |||
Loans receivable: | |||
Concentration risk (as a percentage) | 50.20% | ||
Commercial Real Estate Agriculture Mortgages [Member] | Loan [Member] | Credit concentration risk [Member] | |||
Loans receivable: | |||
Concentration risk (as a percentage) | 30.50% | 29.80% | |
NAICS Dairy Cattle and Milk Production Loans [Member] | |||
Loans receivable: | |||
Loans Receivable, gross | $ 85,300,000 | ||
NAICS Dairy Cattle and Milk Production Loans [Member] | Loan [Member] | Credit concentration risk [Member] | |||
Loans receivable: | |||
Concentration risk (as a percentage) | 16.40% | ||
NAICS Non-Residential Real Estate Investment Loans [Member] | |||
Loans receivable: | |||
Loans Receivable, gross | $ 40,400,000 | ||
NAICS Non-Residential Real Estate Investment Loans [Member] | Loan [Member] | Credit concentration risk [Member] | |||
Loans receivable: | |||
Concentration risk (as a percentage) | 7.80% | ||
Broilers and other chicken production loans [Member] | |||
Loans receivable: | |||
Loans Receivable, gross | $ 32,300,000 | ||
Broilers and other chicken production loans [Member] | Loan [Member] | Credit concentration risk [Member] | |||
Loans receivable: | |||
Concentration risk (as a percentage) | 6.20% | ||
Total Commercial and Industrial [Member] | |||
Loans receivable: | |||
Loans Receivable, gross | $ 73,600,000 | ||
Commercial and Industrial Tax Free Loans [Member] | |||
Loans receivable: | |||
Loans Receivable, gross | $ 19,100,000 | ||
Commercial and Industrial Tax Free Loans [Member] | Loan [Member] | Credit concentration risk [Member] | |||
Loans receivable: | |||
Concentration risk (as a percentage) | 3.70% |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | $ 1,705,000 | $ 2,358,000 | |
Related Allowance | 1,000 | ||
CRA Investment Fund [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, book value | $ 5,000,000 | 5,000,000 | |
CRA Investment Fund [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, market value | 5,000,000 | 5,000,000 | |
Regulatory Bank Stock [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, book value | 515,000 | 189,000 | |
Regulatory Bank Stock [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, market value | $ 533,000 | $ 208,000 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 289,423 | $ 295,822 |
Fair Value Measured on a Recurring Basis [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 289,423 | 295,822 |
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) | 5,533 | 5,208 |
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) | $ 283,890 | $ 290,614 |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 29,691 | $ 46,159 |
U.S. Government Agencies [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 29,691 | $ 46,159 |
U.S. Government Agencies [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) | ||
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) | $ 29,691 | $ 46,159 |
U.S. Government Agencies [Member] | Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 41,980 | $ 37,950 |
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) | $ 41,980 | $ 37,950 |
U.S. Agency Mortgage-Backed 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) | ||
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) | $ 41,980 | $ 37,950 |
U.S. Agency Mortgage-Backed Securities [Member] | Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 47,331 | $ 48,066 |
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) | $ 47,331 | $ 48,066 |
U.S. Agency Collateralized Mortgage Obligations [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) | ||
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) | $ 47,331 | $ 48,066 |
U.S. Agency Collateralized Mortgage Obligations [Member] | Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 63,305 | $ 65,108 |
Corporate Bonds [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 63,305 | $ 65,108 |
Corporate Bonds [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) | ||
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) | $ 63,305 | $ 65,108 |
Corporate Bonds [Member] | Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 101,583 | $ 93,331 |
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) | $ 101,583 | $ 93,331 |
Obligations of States and Political Subdivisions [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) | ||
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) | $ 101,583 | $ 93,331 |
Obligations of States and Political Subdivisions [Member] | Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Marketable equity securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 5,533 | $ 5,208 |
Marketable equity securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 5,533 | 5,208 |
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) | $ 5,533 | $ 5,208 |
Marketable equity 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) | ||
Marketable equity securities [Member] | Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) |
FAIR VALUE MEASUREMENTS (Sche88
FAIR VALUE MEASUREMENTS (Schedule of Assets Measured on Nonrecurring Basis) (Details) - Fair Value Measured on a Nonrecurring Basis [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Non-Recurring Fair Value Measurements | ||
Impaired Loans | $ 1,705 | $ 2,357 |
OREO | 69 | |
Total Fair Value, non-recurring | $ 1,705 | $ 2,426 |
Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ||
Non-Recurring Fair Value Measurements | ||
Impaired Loans | ||
OREO | ||
Total Fair Value, non-recurring | ||
Significant Other Observable Inputs (Level II) [Member] | ||
Non-Recurring Fair Value Measurements | ||
Impaired Loans | ||
OREO | ||
Total Fair Value, non-recurring | ||
Significant Unobservable Inputs (Level III) [Member] | ||
Non-Recurring Fair Value Measurements | ||
Impaired Loans | $ 1,705 | $ 2,357 |
OREO | 69 | |
Total Fair Value, non-recurring | $ 1,705 | $ 2,426 |
FAIR VALUE MEASUREMENTS (Sche89
FAIR VALUE MEASUREMENTS (Schedule of Level III Inputs to Determine Fair Value) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Impaired Loans [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value, non-recurring | $ 1,705 | $ 2,357 |
Valuation Techniques | Appraisal of collateral | Appraisal of collateral |
Impaired Loans [Member] | Lower Range [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable inputs - Appraisal adjustments | (20.00%) | (20.00%) |
Unobservable inputs - Liquidation expenses | (10.00%) | (10.00%) |
Impaired Loans [Member] | Upper Range [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable inputs - Appraisal adjustments | 0.00% | 0.00% |
Unobservable inputs - Liquidation expenses | 0.00% | 0.00% |
Impaired Loans [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Unobservable inputs - Appraisal adjustments | (20.00%) | (20.00%) |
Unobservable inputs - Liquidation expenses | (10.00%) | (10.00%) |
Other Real Estate Owned [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Total Fair Value, non-recurring | $ 69 | |
Valuation Techniques | Appraisal of collateral | |
Unobservable inputs - Appraisal adjustments | (40.00%) | |
Unobservable inputs - Liquidation expenses | (1.00%) |
DISCLOSURES ABOUT FAIR VALUE 90
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair value of financial assets | ||||
Total cash and cash equivalents | $ 44,227 | $ 43,412 | $ 24,577 | $ 35,660 |
Securities available for sale | 289,423 | 295,822 | ||
Regulatory stock | 4,314 | 3,227 | ||
Loans, net of allowance | 513,205 | 464,027 | ||
Bank owned life insurance | 23,869 | 20,603 | ||
Financial Liabilities: | ||||
Non-interest bearing demand deposits | 236,214 | 210,444 | ||
Interest-bearing demand deposits | 14,737 | 14,039 | ||
NOW accounts | 77,180 | 72,951 | ||
Money market deposit accounts | 82,507 | 69,442 | ||
Savings accounts | 148,320 | 131,206 | ||
Total deposits | 740,062 | $ 699,651 | ||
Short-term Debt | 8,736 | $ 3,900 | ||
Long-term debt | 59,594 | $ 62,300 | ||
Carrying Amount [Member] | ||||
Fair value of financial assets | ||||
Total cash and cash equivalents | 44,227 | 43,412 | ||
Securities available for sale | 289,423 | 295,822 | ||
Regulatory stock | 4,314 | 3,227 | ||
Loans held for sale | 1,126 | 506 | ||
Loans, net of allowance | 513,205 | 464,027 | ||
Accrued interest receivable | 3,600 | 3,706 | ||
Bank owned life insurance | 23,869 | 20,603 | ||
Financial Liabilities: | ||||
Non-interest bearing demand deposits | 236,214 | 210,444 | ||
Interest-bearing demand deposits | 14,737 | 14,039 | ||
NOW accounts | 77,180 | 72,951 | ||
Money market deposit accounts | 82,507 | 69,442 | ||
Savings accounts | 148,320 | 131,206 | ||
Time deposits | 181,104 | 201,569 | ||
Total deposits | 740,062 | 699,651 | ||
Short-term Debt | 8,736 | |||
Long-term debt | 59,594 | 62,300 | ||
Accrued interest payable | 456 | 586 | ||
Fair Value [Member] | ||||
Fair value of financial assets | ||||
Total cash and cash equivalents | 44,227 | 43,412 | ||
Securities available for sale | 289,423 | 295,822 | ||
Regulatory stock | 4,314 | 3,227 | ||
Loans held for sale | 1,126 | 506 | ||
Loans, net of allowance | 512,481 | 463,197 | ||
Accrued interest receivable | 3,600 | 3,706 | ||
Bank owned life insurance | 23,869 | 20,603 | ||
Financial Liabilities: | ||||
Non-interest bearing demand deposits | 236,214 | 210,444 | ||
Interest-bearing demand deposits | 14,737 | 14,039 | ||
NOW accounts | 77,180 | 72,951 | ||
Money market deposit accounts | 82,507 | 69,442 | ||
Savings accounts | 148,320 | 131,206 | ||
Time deposits | 182,887 | 203,787 | ||
Total deposits | 741,845 | 701,869 | ||
Short-term Debt | 8,736 | |||
Long-term debt | 59,805 | 63,058 | ||
Accrued interest payable | 456 | 586 | ||
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ||||
Fair value of financial assets | ||||
Total cash and cash equivalents | 44,227 | 43,412 | ||
Securities available for sale | 5,533 | 5,208 | ||
Regulatory stock | 4,314 | 3,227 | ||
Loans held for sale | $ 1,126 | $ 506 | ||
Loans, net of allowance | ||||
Accrued interest receivable | $ 3,600 | $ 3,706 | ||
Bank owned life insurance | 23,869 | 20,603 | ||
Financial Liabilities: | ||||
Non-interest bearing demand deposits | 236,214 | 210,444 | ||
Interest-bearing demand deposits | 14,737 | 14,039 | ||
NOW accounts | 77,180 | 72,951 | ||
Money market deposit accounts | 82,507 | 69,442 | ||
Savings accounts | $ 148,320 | $ 131,206 | ||
Time deposits | ||||
Total deposits | $ 558,958 | $ 498,082 | ||
Short-term Debt | $ 8,736 | |||
Long-term debt | ||||
Accrued interest payable | $ 456 | $ 586 | ||
Fair Value [Member] | Significant Other Observable Inputs (Level II) [Member] | ||||
Fair value of financial assets | ||||
Total cash and cash equivalents | ||||
Securities available for sale | $ 283,890 | $ 290,614 | ||
Regulatory stock | ||||
Loans held for sale | ||||
Loans, net of allowance | ||||
Accrued interest receivable | ||||
Bank owned life insurance | ||||
Financial Liabilities: | ||||
Non-interest bearing demand deposits | ||||
Interest-bearing demand deposits | ||||
NOW accounts | ||||
Money market deposit accounts | ||||
Savings accounts | ||||
Time deposits | ||||
Total deposits | ||||
Short-term Debt | ||||
Long-term debt | ||||
Accrued interest payable | ||||
Fair Value [Member] | Significant Unobservable Inputs (Level III) [Member] | ||||
Fair value of financial assets | ||||
Total cash and cash equivalents | ||||
Securities available for sale | ||||
Regulatory stock | ||||
Loans held for sale | ||||
Loans, net of allowance | $ 512,481 | $ 463,197 | ||
Accrued interest receivable | ||||
Bank owned life insurance | ||||
Financial Liabilities: | ||||
Non-interest bearing demand deposits | ||||
Interest-bearing demand deposits | ||||
NOW accounts | ||||
Money market deposit accounts | ||||
Savings accounts | ||||
Time deposits | $ 182,887 | $ 203,787 | ||
Total deposits | $ 182,887 | 203,787 | ||
Short-term Debt | ||||
Long-term debt | $ 59,805 | $ 63,058 | ||
Accrued interest payable |
ACCUMULATED OTHER COMPREHENSI91
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning | $ 92,767 | $ 83,776 | $ 89,515 | |
Other comprehensive income (loss), net of tax | (1,254) | 4,942 | (10,603) | |
Balance, ending | $ 95,102 | $ 92,767 | $ 83,776 | |
Federal income tax rate | 34.00% | 34.00% | 34.00% | |
Unrealized Gain (Losses) on Securities AFS [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning | [1],[2] | $ 1,002 | $ (3,940) | |
Other comprehensive income (loss) before reclassifications | [1],[2] | 621 | 6,993 | |
Amount reclassified into (from) accumulated other comprehensive income (loss) | [1],[2] | (1,875) | (2,051) | |
Other comprehensive income (loss), net of tax | [1],[2] | (1,254) | 4,942 | |
Balance, ending | [1],[2] | $ (252) | $ 1,002 | $ (3,940) |
Federal income tax rate | 34.00% | |||
[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. |
ACCUMULATED OTHER COMPREHENSI92
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Schedule of Amounts Reclassified from AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Gains on securities transactions, net | $ 2,840 | $ 3,131 | $ 3,388 | ||||||||||||
Impairment on securities | (22) | (171) | |||||||||||||
Provision for federal income taxes | $ (455) | $ (382) | $ (278) | $ (243) | $ (463) | $ (337) | $ (347) | $ (399) | $ (543) | $ (274) | $ (292) | $ (392) | $ (1,358) | (1,546) | (1,501) |
Reclassifications for the period | $ 1,995 | $ 1,853 | $ 1,596 | $ 1,466 | $ 1,802 | $ 1,712 | $ 1,740 | $ 1,838 | $ 2,139 | $ 1,741 | $ 1,822 | $ 2,008 | 6,910 | 7,092 | $ 7,710 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Reclassifications for the period | 1,875 | 2,051 | |||||||||||||
Unrealized Gain (Losses) on Securities AFS [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Gains on securities transactions, net | 2,840 | 3,131 | |||||||||||||
Provision for federal income taxes | (965) | (1,065) | |||||||||||||
Reclassifications for the period | $ 1,875 | 2,066 | |||||||||||||
Accumulated Other-than-Temporary Impairment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||||||
Impairment on securities | (22) | ||||||||||||||
Provision for federal income taxes | 7 | ||||||||||||||
Reclassifications for the period | $ (15) |
CONDENSED PARENT ONLY DATA (Con
CONDENSED PARENT ONLY DATA (Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
ASSETS | ||||
Cash | $ 44,227 | $ 43,412 | $ 24,577 | $ 35,660 |
Securities available for sale (at fair value) | 289,423 | 295,822 | ||
Other assets | 7,741 | 7,164 | ||
Total assets | 905,601 | 857,208 | ||
Stockholders' Equity: | ||||
Capital stock | 574 | 574 | ||
Capital surplus | 4,395 | 4,375 | ||
Retained earnings | 91,029 | 87,200 | ||
Unrealized gain (loss) on AFS securities | (252) | 1,002 | ||
Treasury stock | (644) | (384) | ||
Total stockholders' equity | 95,102 | 92,767 | 83,776 | 89,515 |
Parent Company [Member] | ||||
ASSETS | ||||
Cash | 509 | 702 | $ 315 | $ 453 |
Securities available for sale (at fair value) | 533 | 208 | ||
Equity in bank subsidiary | 93,994 | 91,786 | ||
Other assets | 66 | 71 | ||
Total assets | 95,102 | 92,767 | ||
Stockholders' Equity: | ||||
Capital stock | 574 | 574 | ||
Capital surplus | 4,395 | 4,375 | ||
Retained earnings | 91,029 | 87,200 | ||
Unrealized gain (loss) on AFS securities | (252) | 1,002 | ||
Treasury stock | (644) | (384) | ||
Total stockholders' equity | $ 95,102 | $ 92,767 |
CONDENSED PARENT ONLY DATA (C94
CONDENSED PARENT ONLY DATA (Condensed Statements of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income | |||||||||||||||
Gains on securities transactions | $ 2,840 | $ 3,131 | $ 3,388 | ||||||||||||
Dividend income | 359 | 245 | 141 | ||||||||||||
Expense | |||||||||||||||
Other expenses | 2,351 | 2,211 | 2,139 | ||||||||||||
Total operating expenses | $ 6,308 | $ 6,090 | $ 6,187 | $ 6,150 | $ 6,067 | $ 5,767 | $ 5,789 | $ 5,798 | $ 5,736 | $ 5,347 | $ 5,476 | $ 5,376 | 24,735 | 23,421 | 21,935 |
Net income | $ 1,995 | $ 1,853 | $ 1,596 | $ 1,466 | $ 1,802 | $ 1,712 | $ 1,740 | $ 1,838 | $ 2,139 | $ 1,741 | $ 1,822 | $ 2,008 | 6,910 | 7,092 | 7,710 |
Comprehensive Income (Loss) | 5,656 | 12,034 | (2,893) | ||||||||||||
Parent Company [Member] | |||||||||||||||
Income | |||||||||||||||
Dividend income - investment securities | 16 | 9 | 7 | ||||||||||||
Gains on securities transactions | 25 | 49 | 25 | ||||||||||||
Dividend income | 3,581 | 3,556 | 2,966 | ||||||||||||
Undistributed net earnings of subsidiary | 3,462 | 3,621 | 4,855 | ||||||||||||
Total Income | 7,084 | 7,235 | 7,853 | ||||||||||||
Expense | |||||||||||||||
Shareholder expenses | 118 | 129 | 131 | ||||||||||||
Other expenses | 56 | 14 | 12 | ||||||||||||
Total operating expenses | 174 | 143 | 143 | ||||||||||||
Net income | 6,910 | 7,092 | 7,710 | ||||||||||||
Comprehensive Income (Loss) | $ 5,656 | $ 12,034 | $ (2,893) |
CONDENSED PARENT ONLY DATA (C95
CONDENSED PARENT ONLY DATA (Condensed Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities: | |||||||||||||||
Net income | $ 1,995 | $ 1,853 | $ 1,596 | $ 1,466 | $ 1,802 | $ 1,712 | $ 1,740 | $ 1,838 | $ 2,139 | $ 1,741 | $ 1,822 | $ 2,008 | $ 6,910 | $ 7,092 | $ 7,710 |
Gains on securities transactions, net | (2,840) | (3,131) | (3,388) | ||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||
Proceeds from sales of securities available for sale | 154,384 | 155,363 | 116,347 | ||||||||||||
Purchases of securities available for sale | (199,023) | (180,668) | (175,355) | ||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||
Proceeds from issuance of treasury stock | 512 | 499 | 477 | ||||||||||||
Payment to repurchase common stock | (752) | (485) | (357) | ||||||||||||
Dividends paid | (3,081) | (3,057) | (2,966) | ||||||||||||
Cash and Cash Equivalents: | |||||||||||||||
Increase (decrease) in cash and cash equivalents | 815 | 18,835 | (11,083) | ||||||||||||
Cash and cash equivalents at beginning of period | 43,412 | 24,577 | 35,660 | 43,412 | 24,577 | 35,660 | |||||||||
Cash and cash equivalents at end of period | 44,227 | 43,412 | 24,577 | 44,227 | 43,412 | 24,577 | |||||||||
Parent Company [Member] | |||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||
Net income | 6,910 | 7,092 | 7,710 | ||||||||||||
Equity in undistributed earnings of subsidiaries | (3,462) | (3,621) | (4,855) | ||||||||||||
Gains on securities transactions, net | (25) | (49) | (25) | ||||||||||||
Net change in other assets | 5 | (3) | 4 | ||||||||||||
Net cash provided by operating activities | 3,428 | 3,419 | 2,834 | ||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||
Proceeds from sales of securities available for sale | 167 | 338 | 120 | ||||||||||||
Purchases of securities available for sale | (467) | (327) | (246) | ||||||||||||
Net cash provided by (used for) investing activities | (300) | 11 | (126) | ||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||
Proceeds from issuance of treasury stock | 512 | 499 | 477 | ||||||||||||
Payment to repurchase common stock | (752) | (485) | (357) | ||||||||||||
Dividends paid | (3,081) | (3,057) | (2,966) | ||||||||||||
Net cash used for financing activities | (3,321) | (3,043) | (2,846) | ||||||||||||
Cash and Cash Equivalents: | |||||||||||||||
Increase (decrease) in cash and cash equivalents | (193) | 387 | (138) | ||||||||||||
Cash and cash equivalents at beginning of period | $ 702 | $ 315 | $ 453 | 702 | 315 | 453 | |||||||||
Cash and cash equivalents at end of period | $ 509 | $ 702 | $ 315 | $ 509 | $ 702 | $ 315 |
SUMMARY OF QUARTERLY FINANCIA96
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
SUMMARY OF QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |||||||||||||||
Interest income | $ 6,491 | $ 6,761 | $ 6,718 | $ 6,872 | $ 6,744 | $ 6,696 | $ 6,825 | $ 6,872 | $ 6,899 | $ 6,745 | $ 6,609 | $ 6,653 | $ 26,842 | $ 27,137 | $ 26,906 |
Interest expense | 851 | 928 | 951 | 1,014 | 1,087 | 1,155 | 1,217 | 1,217 | 1,282 | 1,322 | 1,348 | 1,430 | 3,744 | 4,676 | 5,382 |
Net interest income | $ 5,640 | 5,833 | 5,767 | 5,858 | 5,657 | $ 5,541 | 5,608 | 5,655 | 5,617 | $ 5,423 | 5,261 | 5,223 | 23,098 | 22,461 | 21,524 |
Less provision (credit) for loan losses | (150) | 100 | 200 | 250 | (100) | (200) | (75) | (100) | (50) | 150 | (50) | (225) | |||
Net interest income after provision (credit) for loan losses | $ 5,640 | 5,983 | 5,667 | 5,658 | 5,407 | $ 5,541 | 5,708 | 5,855 | 5,692 | $ 5,423 | 5,361 | 5,273 | 22,948 | 22,511 | 21,749 |
Other income | 3,118 | 2,342 | 2,394 | 2,201 | 2,925 | 2,275 | 2,168 | 2,180 | 2,726 | 1,939 | 2,229 | 2,503 | 10,055 | 9,548 | 9,397 |
Operating expenses: | |||||||||||||||
Salaries and employee benefits | 3,741 | 3,679 | 3,674 | 3,702 | 3,515 | 3,517 | 3,481 | 3,430 | 3,368 | 3,193 | 3,184 | 3,168 | 14,796 | 13,943 | 12,913 |
Occupancy and equipment expenses | 783 | 791 | 822 | 822 | 794 | 763 | 727 | 776 | 693 | 710 | 665 | 644 | |||
Other operating expenses | 1,784 | 1,620 | 1,691 | 1,626 | 1,758 | 1,487 | 1,581 | 1,592 | 1,675 | 1,444 | 1,627 | 1,564 | |||
Total operating expenses | 6,308 | 6,090 | 6,187 | 6,150 | 6,067 | 5,767 | 5,789 | 5,798 | 5,736 | 5,347 | 5,476 | 5,376 | 24,735 | 23,421 | 21,935 |
Income before income taxes | 2,450 | 2,235 | 1,874 | 1,709 | 2,265 | 2,049 | 2,087 | 2,237 | 2,682 | 2,015 | 2,114 | 2,400 | 8,268 | 8,638 | 9,211 |
Provision for Federal income taxes | 455 | 382 | 278 | 243 | 463 | 337 | 347 | 399 | 543 | 274 | 292 | 392 | 1,358 | 1,546 | 1,501 |
Net income | $ 1,995 | $ 1,853 | $ 1,596 | $ 1,466 | $ 1,802 | $ 1,712 | $ 1,740 | $ 1,838 | $ 2,139 | $ 1,741 | $ 1,822 | $ 2,008 | $ 6,910 | $ 7,092 | $ 7,710 |
Earnings per share of common stock | $ 0.70 | $ 0.65 | $ 0.56 | $ 0.51 | $ 0.63 | $ 0.60 | $ 0.61 | $ 0.64 | $ 0.75 | $ 0.61 | $ 0.64 | $ 0.70 | $ 2.42 | $ 2.48 | $ 2.70 |
Cash dividends paid per share | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 1.08 | $ 1.07 | $ 1.04 |