Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 10, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | County Bancorp, Inc. | |
Entity Central Index Key | 1,470,205 | |
Trading Symbol | ICBK | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Common Stock, Shares Outstanding | 5,751,579 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 13,026 | $ 10,480 |
Securities available-for-sale, at fair value | 85,783 | 81,282 |
FHLB Stock, at cost | 3,507 | 1,252 |
Loans held for sale | 13,712 | 4,114 |
Loans, net of allowance for loan losses of $9,833 as of September 30, 2015; $10,603 as of December 31, 2014 | 694,196 | 637,519 |
Premises and equipment, net | 5,771 | 4,596 |
Loan servicing rights | 7,721 | 7,746 |
Other real estate owned, net | 3,024 | 7,137 |
Cash surrender value of bank owned life insurance | 11,082 | 10,863 |
Deferred tax asset, net | 2,047 | 2,321 |
Accrued interest receivable and other assets | 4,922 | 4,446 |
Total assets | 844,791 | 771,756 |
Deposits: | ||
Noninterest-bearing | 60,685 | 81,534 |
Interest-bearing | 575,536 | 523,935 |
Total deposits | 636,221 | 605,469 |
Other borrowings | 4,383 | 23,857 |
Advances from FHLB | 64,000 | 28,000 |
Subordinated debentures | 12,372 | 12,372 |
Accrued interest payable and other liabilities | 8,379 | 7,015 |
Total liabilities | 725,355 | 676,713 |
Small Business Lending Fund redeemable preferred stock-variable rate, noncumulative, nonparticipating, $1,000 stated value; 15,000 shares authorized and issued, $15,000 redemption amount | 15,000 | 15,000 |
SHAREHOLDERS' EQUITY | ||
Preferred stock-variable rate, non-cumulative, nonparticipating, $1,000 stated value; 15,000 shares authorized; 8,000 shares issued | 8,000 | 8,000 |
Common stock - $0.01 par value; 50,000,000 authorized; 6,143,689 shares issued and 5,733,919 shares outstanding at September 30, 2015 and 4,908,560 shares issued and 4,498,790 shares outstanding at December 31, 2014 | 18 | 5 |
Surplus | 34,118 | 16,970 |
Retained earnings | 66,274 | 59,254 |
Treasury stock, at cost, 409,770 shares at September 30, 2015 and December 31, 2014 | (4,572) | (4,572) |
Accumulated other comprehensive income | 598 | 386 |
Total shareholders' equity | 104,436 | 80,043 |
Total liabilities and shareholders' equity | $ 844,791 | $ 771,756 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Allowance for loan losses | $ 9,833 | $ 10,603 |
Small Business Lending Fund redeemable preferred stock, stated value | $ 1,000 | $ 1,000 |
Small Business Lending Fund redeemable preferred stock, shares authorized | 15,000 | 15,000 |
Small Business Lending Fund redeemable preferred stock, redemption amount | $ 15,000 | $ 15,000 |
Preferred Stock, stated value | $ 1,000 | $ 1,000 |
Preferred Stock, shares authorized | 15,000 | 15,000 |
Preferred Stock, shares issued | 8,000 | 8,000 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 50,000,000 | 50,000,000 |
Common Stock, shares issued | 6,143,689 | 4,908,560 |
Common Stock, shares outstanding | 5,733,919 | 4,498,790 |
Treasury Stock, shares | 409,770 | 409,770 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||
INTEREST AND DIVIDEND INCOME | ||||||
Loans, including fees | $ 8,393 | $ 7,225 | $ 23,687 | $ 21,704 | ||
Taxable securities | 251 | 217 | 715 | 662 | ||
Tax-exempt securities | 109 | 117 | 322 | 364 | ||
Federal funds sold and other | 11 | 23 | 41 | 90 | ||
Total interest and dividend income | 8,764 | 7,582 | 24,765 | 22,820 | ||
INTEREST EXPENSE | ||||||
Deposits | 1,575 | 1,549 | 4,541 | 4,666 | ||
FHLB advances and other borrowed funds | 219 | 108 | 624 | 695 | ||
Subordinated debentures | 99 | 120 | 339 | 360 | ||
Total interest expense | 1,893 | 1,777 | 5,504 | 5,721 | ||
Net interest income | 6,871 | 5,805 | 19,261 | 17,099 | ||
Provision for loan losses | (867) | (1,325) | ||||
Net interest income after provision for loan losses | 7,738 | 5,805 | 20,586 | 17,099 | ||
Non-interest income: | ||||||
Services charges | 238 | 388 | 744 | 559 | ||
Gain on sale of loans, net | 44 | 69 | 166 | 251 | ||
Loan servicing fees | 1,185 | 1,267 | 3,623 | 3,634 | ||
Other | 256 | 74 | 777 | 723 | ||
Total non-interest income | 1,723 | 1,798 | 5,310 | 5,167 | ||
Non-interest expense: | ||||||
Employee compensation and benefits | 2,643 | 2,570 | 8,232 | 7,628 | ||
Occupancy | 100 | 75 | 260 | 229 | ||
Write-down of other real estate owned | 44 | 182 | 729 | |||
Other | 1,392 | 1,575 | 4,309 | 4,149 | ||
Total non-interest expense | 4,135 | 4,264 | 12,983 | 12,735 | ||
Income before income taxes | 5,326 | 3,339 | 12,913 | 9,531 | ||
Income tax expense | 1,996 | 1,068 | 4,839 | 3,403 | ||
NET INCOME | $ 3,330 | $ 2,271 | [1] | $ 8,074 | $ 6,128 | [1] |
NET INCOME PER SHARE: | ||||||
Basic | $ 0.56 | $ 0.48 | $ 1.37 | $ 1.29 | ||
Diluted | 0.55 | $ 0.47 | 1.34 | $ 1.26 | ||
Dividends paid per share | $ 0.04 | $ 0.12 | ||||
[1] | Adjusted for 10-for-1 stock split on April 4, 2014 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||
Statement Of Income And Comprehensive Income [Abstract] | ||||||
Net income | $ 3,330 | $ 2,271 | [1] | $ 8,074 | $ 6,128 | [1] |
Other comprehensive income (loss): | ||||||
Unrealized gains (losses) on securities available for sale | 524 | (155) | 347 | 549 | ||
Income tax (expense) benefit | (204) | 61 | (135) | (216) | ||
Total other comprehensive income (loss) | 320 | (94) | 212 | 333 | ||
Comprehensive income | $ 3,650 | $ 2,177 | $ 8,286 | $ 6,461 | ||
[1] | Adjusted for 10-for-1 stock split on April 4, 2014 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | SBLF | Preferred Stock | Common Stock | Surplus | Retained Earnings | Retained EarningsSBLF | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | |
Balance at Dec. 31, 2013 | $ 71,809 | $ 8,000 | $ 5 | $ 16,004 | $ 51,514 | $ (3,683) | $ (31) | |||
Net income | 6,128 | [1] | 6,128 | |||||||
Other comprehensive income | 333 | 333 | ||||||||
Stock compensation expense, net of tax | 110 | 110 | ||||||||
Purchase of treasury stock (44,790 shares) | (812) | (812) | ||||||||
Cash dividends declared on preferred stock | (239) | $ (113) | (239) | $ (113) | ||||||
Proceeds from sale of common stock | 506 | 506 | ||||||||
Balance at Sep. 30, 2014 | 77,722 | 8,000 | 5 | 16,620 | 57,290 | (4,495) | 302 | |||
Balance at Dec. 31, 2014 | 80,043 | 8,000 | 5 | 16,970 | 59,254 | (4,572) | 386 | |||
Net income | 8,074 | 8,074 | ||||||||
Other comprehensive income | 212 | 212 | ||||||||
Stock compensation expense, net of tax | 266 | 266 | ||||||||
Cash dividends declared on common stock | (687) | (687) | ||||||||
Cash dividends declared on preferred stock | (239) | $ (128) | (239) | $ (128) | ||||||
Proceeds from sale of common stock | 16,895 | 13 | 16,882 | |||||||
Balance at Sep. 30, 2015 | $ 104,436 | $ 8,000 | $ 18 | $ 34,118 | $ 66,274 | $ (4,572) | $ 598 | |||
[1] | Adjusted for 10-for-1 stock split on April 4, 2014 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement Of Stockholders Equity [Abstract] | ||
Purchase of treasury stock, shares | 44,790 | |
Proceeds from sale of common stock, shares | 1,220,750 | 44,790 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Cash flows from operating activities | |||
Net income | $ 8,074 | $ 6,128 | [1] |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization of premises and equipment | 444 | 461 | |
Recovery of loan losses | (1,325) | ||
Realized loss on sales of other real estate owned | 260 | 235 | |
Write-down of other real estate owned | 182 | 729 | |
Realized loss (gain) on sales of premises and equipment | 4 | (1) | |
Increase in cash surrender value of bank owned life insurance | (219) | (213) | |
Deferred income tax expense | 136 | 672 | |
Stock compensation expense, net | 266 | 110 | |
Net amortization of securities | 431 | 374 | |
Net change in: | |||
Accrued interest receivable and other assets | (476) | 48 | |
Loans held for sale | (9,598) | 5,972 | |
Loan servicing rights | 25 | (115) | |
Accrued interest payable and other liabilities | 1,363 | 484 | |
Net cash provided by (used in) operating activities | (433) | 14,884 | |
Cash flows from investing activities | |||
Proceeds from maturities, principal repayments, and call of securities available for sale | 6,691 | 8,352 | |
Purchases of securities available for sale | (11,274) | (12,843) | |
Purchases of FHLB stock | (2,255) | ||
Loan originations and principal collections, net | (56,882) | (23,928) | |
Proceeds from sales of premises and equipment | 25 | ||
Purchases of premises and equipment | (1,623) | (978) | |
Capitalized additions to other real estate owned | (39) | (423) | |
Proceeds from sales of other real estate owned | 5,240 | 8,714 | |
Net cash used in investing activities | (60,142) | (21,081) | |
Cash flows from financing activities | |||
Net increase (decrease) in demand and savings deposits | (521) | 24,580 | |
Net increase (decrease) in certificates of deposits | 31,274 | (40,957) | |
Net change in other borrowings | (19,473) | (4,822) | |
Proceeds from FHLB Advances | 404,500 | 5,000 | |
Repayment of FHLB Advances | (368,500) | (5,000) | |
Payments to acquire treasury stock | (812) | ||
Proceeds from issuance of common stock | 16,895 | 506 | |
Dividends paid on common stock | (687) | ||
Dividends paid on preferred stock | (239) | (239) | |
Net cash provided by (used in) financing activities | 63,121 | (21,857) | |
Net change in cash and cash equivalents | 2,546 | (28,054) | |
Cash and cash equivalents, beginning of period | 10,480 | 71,780 | |
Cash and cash equivalents, end of period | 13,026 | 43,726 | |
Supplemental disclosure of cash flow information: | |||
Interest | 5,516 | 5,674 | |
Income taxes | 3,960 | 2,925 | |
Noncash investing activities: | |||
Transfer from loans to other real estate owned | 1,530 | 1,321 | |
Loans charged off | 1,894 | 218 | |
SBLF | |||
Cash flows from financing activities | |||
Dividends paid on preferred stock | $ (128) | $ (113) | |
[1] | Adjusted for 10-for-1 stock split on April 4, 2014 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION The unaudited consolidated financial statements of County Bancorp, Inc. (the “Company”) and its subsidiaries have been prepared, in the opinion of management, to reflect all adjustments necessary for a fair presentiation of the financial position, results of operations, and cash flows for the interim period. The results of operations for the nine months ended September 30, 2015 may not necessarily be indicative of the results to be expected for the entire fiscal year. Management of the Company is required to make estimates and assumptions which affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of income and expenses during the reported periods. Actual results could differ significantly from those estimates. These unaudited interim financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”). Certain information in footnote disclosure normally included in financial statements prepared in accordance with GAAP has been condensed or omitted pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”). These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2014. The Company qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act (the “JOBS Act”). Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended (the “Securities Act”), for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company elected to take advantage of the benefits of this extended transition period. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 2 – EARNINGS PER SHARE Earnings per common share ("EPS") is computed using the two-class method. Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share plus the dilutive effect of share-based compensation using the treasury stock method. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2015 2014* 2015 2014* Net income from continuing operations $ 3,330 $ 2,271 $ 8,074 $ 6,128 Less: preferred stock dividends including SBLF 118 116 367 352 Income available to common shareholders for basic EPS $ 3,212 $ 2,155 $ 7,707 $ 5,776 Average number of common shares issued 6,545 5,248 6,428 5,247 Less: weighted average treasury shares 410 380 410 365 Less: weighted average nonvested equity incentive plan shares 401 404 383 417 Weighted average number of common shares outstanding 5,734 4,464 5,635 4,465 Effect of dilutive options 124 115 119 118 Weighted average number of common shares outstanding used to calculate diluted earnings per common share 5,858 4,579 5,754 4,583 * Adjusted for 10-for-1 stock split on April 4, 2014 |
SECURITIES AVAILABLE FOR SALE
SECURITIES AVAILABLE FOR SALE | 9 Months Ended |
Sep. 30, 2015 | |
Available For Sale Securities [Abstract] | |
SECURITIES AVAILABLE FOR SALE | NOTE 3 – SECURITIES AVAILABLE FOR SALE The amortized cost and fair value of securities available for sale as of September 30, 2015 and December 31, 2014 are as follows (dollars in thousands): Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2015 U.S. government and agency securities $ 2,004 $ 6 $ — $ 2,010 Municipal securities 46,580 387 (5 ) 46,962 Mortgage-backed securities 36,213 635 (37 ) 36,811 $ 84,797 $ 1,028 $ (42 ) $ 85,783 December 31, 2014 U.S. government and agency securities $ 2,006 $ 1 $ (2 ) $ 2,005 Municipal securities 41,751 237 (139 ) 41,849 Mortgage-backed securities 36,889 636 (97 ) 37,428 $ 80,646 $ 874 $ (238 ) $ 81,282 The amortized cost and fair value of securities at September 30, 2015 and December 31, 2014, by contractual maturity, are shown below (dollars in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value September 30, 2015 Due in one year or less $ 5,318 $ 5,346 Due from one to five years 39,406 39,728 Due from five to ten years 3,860 3,898 Due after ten years — — Mortgage-backed securities 36,213 36,811 $ 84,797 $ 85,783 December 31, 2014 Due in one year or less $ 2,007 $ 2,011 Due from one to five years 41,750 41,843 Due from five to ten years — — Due after ten years — — Mortgage-backed securities 36,889 37,428 $ 80,646 $ 81,282 There were no sales for realized gains or losses for the nine months ended September 30, 2015 and 2014, respectively. The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temorarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2015 and December 31, 2014 (dollars in thousands): Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2015 U.S. government and agency securities $ — $ — $ — $ — $ — $ — Municipal securities 2,106 (5 ) 283 — 2,389 (5 ) Mortgage-backed securities 4,087 (20 ) 2,150 (17 ) 6,237 (37 ) $ 6,193 $ (25 ) $ 2,433 $ (17 ) $ 8,626 $ (42 ) December 31, 2014 U.S. government and agency securities $ 997 $ (2 ) $ — $ — $ 997 $ (2 ) Municipal securities 16,724 (100 ) 3,736 (39 ) 20,460 (139 ) Mortgage-backed securities 6,698 (33 ) 5,651 (64 ) 12,349 (97 ) $ 24,419 $ (135 ) $ 9,387 $ (103 ) $ 33,806 $ (238 ) The unrealized loss on the investments at September 30, 2015 and December 31, 2014 is due to normal fluctuations and pricing inefficiencies. The contractual terms of the investments do not permit the issuers to settle the securities at a price less than the amortized cost basis of the investment. Because the Company does not intend to sell the investments and it is not more-likely-than-not that the Company will be required to sell the investments before recovery of the amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2015 and December 31, 2014. |
LOANS
LOANS | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
LOANS | NOTE 4 – LOANS The components of loans were as follows (dollars in thousands): September 30, December 31, 2015 2014 Agricultural loans $ 469,166 $ 415,164 Commercial real estate loans 147,638 137,517 Commercial loans 52,597 53,745 Residential real estate loans 34,326 40,885 Installment and consumer other 302 811 Total gross loans 704,029 648,122 Allowance for loan losses (9,833 ) (10,603 ) Loans, net $ 694,196 $ 637,519 Changes in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2015 and 2014 were as follows (dollars in thousands): September 30, 2015 Agricultural Commercial Real Estate Commercial Residential Real Estate Installment and Consumer Other Unallocated Total Balance, beginning of year $ 3,456 $ 3,326 $ 2,420 $ 1,392 $ 9 $ — $ 10,603 Provision for (recovery of) loan losses 2,993 (1,673 ) (1,719 ) (920 ) (6 ) — (1,325 ) Loans charged off (1,145 ) (162 ) (415 ) (172 ) — — (1,894 ) Recoveries 47 743 1,196 463 — — 2,449 Balance, end of period $ 5,351 $ 2,234 $ 1,482 $ 763 $ 3 $ — $ 9,833 September 30, 2014 Agricultural Commercial Real Estate Commercial Residential Real Estate Installment and Consumer Other Unallocated Total Balance, beginning of year $ 3,144 $ 3,254 $ 2,172 $ 1,819 $ 3 $ 103 $ 10,495 Provision for (recovery of) loan losses 257 (199 ) 531 (222 ) — (367 ) — Loans charged off (115 ) — (103 ) — — — (218 ) Recoveries 17 61 18 — 1 — 97 Balance, end of period $ 3,303 $ 3,116 $ 2,618 $ 1,597 $ 4 $ (264 ) $ 10,374 The following tables present the balances in the allowance for loan losses and the recorded investment and unpaid principal balance in loans by portfolio segment and based on impairment method as of September 30, 2015 and December 31, 2014 (dollars in thousands) : September 30, 2015 Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Allowance for loan losses: Agricultural loans $ 935 $ 4,416 $ 5,351 Commercial real estate loans 295 1,939 2,234 Commercial loans 1,057 425 1,482 Residential real estate loans — 763 763 Installment and consumer other — 3 3 Total ending allowance for loan losses 2,287 7,546 9,833 Loans: Agricultural loans 20,599 448,567 469,166 Commercial real estate loans 5,891 141,747 147,638 Commercial loans 5,240 47,357 52,597 Residential real estate loans 17 34,309 34,326 Installment and consumer other — 302 302 Total loans 31,747 672,282 704,029 Net loans $ 29,460 $ 664,736 $ 694,196 December 31, 2014 Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Allowance for loan losses: Agricultural loans $ 242 $ 3,214 $ 3,456 Commercial real estate loans 519 2,807 3,326 Commercial loans 1,848 572 2,420 Residential real estate loans 285 1,107 1,392 Installment and consumer other — 9 9 Total ending allowance for loan losses 2,894 7,709 10,603 Loans: Agricultural loans 10,897 404,267 415,164 Commercial real estate loans 3,041 134,476 137,517 Commercial loans 8,910 44,835 53,745 Residential real estate loans 1,996 38,889 40,885 Installment and consumer other — 811 811 Total loans 24,844 623,278 648,122 Net loans $ 21,950 $ 615,569 $ 637,519 The following tables present the aging of the recorded investment in past due loans at September 30, 2015 and December 31, 2014 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Loans Not Past Due Total Loans September 30, 2015 Agricultural loans $ 730 $ 584 $ 1,989 $ 3,303 $ 465,863 $ 469,166 Commercial real estate loans — — 2,418 2,418 145,220 147,638 Commercial loans 185 — 2,907 3,092 49,505 52,597 Residential real estate loans — — 8 8 34,318 34,326 Installment and consumer other — — — — 302 302 Total $ 915 $ 584 $ 7,322 $ 8,821 $ 695,208 $ 704,029 December 31, 2014 Agricultural loans $ 355 $ 9 $ 238 $ 602 $ 414,562 $ 415,164 Commercial real estate loans — — 2,592 2,592 134,925 137,517 Commercial loans — 42 3,366 3,408 50,337 53,745 Residential real estate loans 6 — 534 540 40,345 40,885 Installment and consumer other — — — — 811 811 Total $ 361 $ 51 $ 6,730 $ 7,142 $ 640,980 $ 648,122 The following table lists information on nonaccrual, restructured, and certain past due loans (dollars in thousands): September 30, December 31, 2015 2014 Nonaccrual loans, 90 days or more past due $ 7,322 $ 6,730 Nonaccrual loans 30-89 days past due 642 200 Nonaccrual loans, less than 30 days past due 3,208 4,625 Restructured loans not on nonaccrual status 617 846 90 days or more past due and still accruing — — The following table presents the recorded investment in nonaccrual and loans past due 90 days or more at September 30, 2015 and December 31, 2014 (dollars in thousands): September 30, December 31, 2015 2014 Agricultural loans $ 2,512 $ 1,293 Commercial real estate loans 4,899 5,163 Commercial loans 3,744 3,409 Residential real estate loans 17 1,690 Total $ 11,172 $ 11,555 The average recorded investment in total impaired loans for the nine months ended September 30, 2015 and for the year ended December 31, 2014 amounted to approximately $28,296,000 and $38,565,000, respectively. Interest income recognized on total impaired loans for the nine months ended September 30, 2015 and for the year ended December 31, 2014 amounted to approximately $1,331,000 and $1,326,000, respectively. For nonaccrual loans included in impaired loans, the interest income that would have been recognized had those loans been performing in accordance with their original terms would have been approximately $605,000 and $778,000 for the nine months ended September 30, 2015 and for the year ended December 31, 2014, respectively. Troubled Debt Restructurings The Company has allocated approximately $214,000 and $538,000 of specific reserves to customers whose loan terms have been modified in troubled debt restructurings (“TDR”) at September 30, 2015 and December 31, 2014, respectively. The Company has no additional lending commitments at September 30, 2015 and December 31, 2014 to customers with outstanding loans that are classified as TDRs. A TDR on nonaccrual status is classified as a nonaccrual loan until evaluation supports reasonable assurance of repayment and of performance according to the modified terms of the loan. Once this assurance is reached, the TDR is classified as a restructured loan. There were no unfunded commitments on these loans at September 30, 2015, and December 31, 2014. The following table presents the TDRs by loan class at September 30, 2015 and December 31, 2014 (in thousands): Non-Accrual Restructured and Accruing Total September 30, 2015 Agricultural loans $ 554 $ — $ 554 Commercial real estate loans 2,482 488 2,970 Commercial loans 239 129 368 Residential real estate loans — — — Installment and consumer other — — — Total $ 3,275 $ 617 $ 3,892 December 31, 2014 Agricultural loans $ — $ — $ — Commercial real estate loans 2,571 542 3,113 Commercial loans — 304 304 Residential real estate loans 1,156 — 1,156 Installment and consumer other — — — Total $ 3,727 $ 846 $ 4,573 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of the borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes agricultural, commercial, and commercial real estate loans individually by classifying the credits as to credit risk. The process of analyzing loans for changes in risk rating is ongoing through routine monitoring of the portfolio and annual internal credit reviews for credits with total exposure in excess of $300,000. The Company uses the following definitions for credit risk ratings: Sound. Credits classified as sound show very good probability of ongoing ability to meet and/or exceed obligations. Acceptable. Credits classified as acceptable show a good probability of ongoing ability to meet and/or exceed obligations. Satisfactory. Credits classified as satisfactory show fair probability of ongoing ability to meet and/or exceed obligations. Low Satisfactory . Credits classified as low satisfactory show fair probability of ongoing ability to meet and/or exceed obligations. Low satisfactory credits may be newer or have less of an established track record of financial performance, inconsistent earnings, or may be going through an expansion. Watch. Credits classified as watch show some questionable probability of ongoing ability to meet and/or exceed obligations. Special Mention. Credits classified as special mention show potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loans or of the institution’s credit position at some future date. Substandard . Credits classified as substandard generally have well-defined weaknesses that jeopardize the repayment of the debt. They have a distinct possibility that a loss will be sustained if the deficiencies are not corrected. Doubtful. Credits classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable. The Company categorizes residential real estate, installment and consumer other loans as satisfactory at the time of origination based on information obtained as to the ability of the borrower(s) to service their debt, such as current financial information, employment status and history, historical payment experience, credit scores and type and amount of collateral among other factors. The Company updates relevant information on these types of loans at the time of refinance, troubled debt restructuring or other indications of financial difficulty, downgrading as needed using the same category descriptions as for agricultural, commercial, and commercial real estate loans. In addition, the Company further considers current payment status as an indicator of which risk category to assign the borrower. The greater the level of deteriorated risk as indicated by a loan’s assigned risk category, the greater the likelihood a loss will occur in the future. If the loan is impaired then the loan loss reserves for the loan is recorded at the loss level of impairment. If the loan is not impaired, then its loan loss reserves are determined by the application of a loss rate that increases with risk in accordance with the allowance for loan loss analysis. Based on the most recent analysis performed by management, the risk category of loans by class of loans is as follows as of September 30, 2015 and December 31, 2014 (dollars in thousands): As of September 30, 2015 Sound/ Acceptable/ Satisfactory/ Low Satisfactory Watch Special Mention Substandard Total Loans Agricultural loans $ 407,488 $ 37,940 $ 3,139 $ 20,599 $ 469,166 Commercial real estate loans 123,301 13,782 4,664 5,891 147,638 Commercial loans 40,435 5,459 1,463 5,240 52,597 Residential real estate loans 26,527 4,579 3,203 17 34,326 Installment and consumer other 302 — — — 302 Total $ 598,053 $ 61,760 $ 12,469 $ 31,747 $ 704,029 As of December 31, 2014 Sound/ Acceptable/ Satisfactory/ Low Satisfactory Watch Special Mention Substandard Total Loans Agricultural loans $ 342,598 $ 59,078 $ 2,591 $ 10,897 $ 415,164 Commercial real estate loans 104,609 23,540 6,327 3,041 137,517 Commercial loans 36,205 7,568 1,062 8,910 53,745 Residential real estate loans 29,738 6,288 2,863 1,996 40,885 Installment and consumer other 811 — — — 811 Total $ 513,961 $ 96,474 $ 12,843 $ 24,844 $ 648,122 |
LOAN SERVICING RIGHTS
LOAN SERVICING RIGHTS | 9 Months Ended |
Sep. 30, 2015 | |
Transfers And Servicing [Abstract] | |
LOAN SERVICING RIGHTS | NOTE 5 – LOAN SERVICING RIGHTS Loans serviced for others are not included in the accompanying consolidated balance sheets. The risks inherent in servicing assets relate primarily to changes in prepayments that result from shifts in interest rates. The unpaid principal balances of mortgage and other loans serviced for others were approximately $468.2 million and $429.3 million at September 30, 2015 and December 31, 2014, respectively. The fair value of these rights were approximately $10.2 million and $10.0 million at September 30, 2015 and December 31, 2014, respectively. The fair value of servicing rights was determined using an assumed discount rate of 10 percent and prepayment speeds primarily ranging from 4 percent to 9 percent, depending upon the stratification of the specific right, and nominal credit losses. The following summarizes servicing rights capitalized and amortized, along with the aggregate activity in related valuation allowances (dollars in thousands): September 30, December 31, 2015 2014 Loan servicing rights: Balance, beginning of period $ 7,746 $ 7,529 Additions 2,444 3,414 Disposals (1,039 ) (1,243 ) Amortization (1,430 ) (1,954 ) Balance, end of period $ 7,721 $ 7,746 |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2015 | |
Deposits [Abstract] | |
DEPOSITS | NOTE 6 – DEPOSITS Deposits are summarized as follows at September 30, 2015 and December 31, 2014 (dollars in thousands): September 30, December 31, 2015 2014 Demand deposits $ 60,685 $ 81,534 Savings 160,624 140,296 Certificates of deposit 414,912 383,639 Total deposits $ 636,221 $ 605,469 At September 30, 2015 and December 31, 2014, brokered deposits amounted to $158.3 million and $125.4 million, respectively, and are included in savings and certificates of deposit categories. |
EQUITY INCENTIVE PLAN
EQUITY INCENTIVE PLAN | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
EQUITY INCENTIVE PLAN | NOTE 7 – EQUITY INCENTIVE PLAN Under the Company’s 2012 Equity Incentive Compensation Plan (the “Plan”), the Company may grant options to purchase shares of common stock and issue restricted stock to its directors, officers and employees. Both qualified and non-qualified stock options and restricted stock may be granted and issued, respectively, under the Plan. The exercise price of each option equals the market price of the Company’s stock on the date of grant and an option’s maximum term is ten years. Vesting periods range from one to five years from the date of grant. The restricted stock has a cliff vesting period of five years from the date of issuance. The status of the Company’s Plan and changes in the Plan as of September 30, 2015 are as follows: September 30, 2015 Number of Options Weighted-Average Exercise Price Aggregate Intrinsic Value (1) Outstanding, beginning of year 336,051 $ 11.57 Granted 79,415 19.31 Exercised (10,000 ) 6.90 Forfeited/expired (5,000 ) 12.18 Outstanding, end of period 400,466 $ 13.21 $ 2,375 Options exercisable at period-end 240,400 $ 11.29 $ 1,887 Weighted-average fair value of options granted during the period (2) $ 4.99 (1) In thousands. The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on September 30, 2015 and December 31, 2014. This amount changes based on changes in the market value of the Company’s stock. (2) The fair value (present value of the estimated future benefit to the option holder) of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. Activity in restricted stock awards (“RSA”) as of September 30, 2015 is as follows: September 30, 2015 RSAs Weighted Average Grant Price Outstanding, beginning of year 34,080 $ 12.88 Granted 14,379 19.71 Vested — — Forfeited/expired — — Outstanding, end of period 48,459 $ 14.90 For the nine months ended September 30, 2015 and 2014, share-based compensation expense, including options and restricted stock awards, applicable to the Plan was $266,000 and $110,000, respectively. As of September 30, 2015, unrecognized share-based compensation expense related to nonvested options amounted to $728,000 and is expected to be recognized over a weighted average period of 2.66 years. |
REGULATORY MATTERS
REGULATORY MATTERS | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY MATTERS | NOTE 8 – REGULATORY MATTERS The Company (on a consolidated basis) and Investors Community Bank (the “Bank”) are each subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and 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. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of Total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets, as such terms are defined in the regulations. Management believed, as of September 30, 2015 and December 31, 2014, that the Company and the Bank met all capital adequacy requirements to which they were subject. As of September 30, 2015, the Bank’s capital ratios met those required to be considered as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following tables. The Company’s and Bank’s actual capital amounts and ratios are presented in the following table (dollars in thousands): Actual Minimum For Capital Adequacy Purposes: Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions: Amount Ratio Amount Ratio Amount Ratio September 30, 2015 Total Capital (to risk weighted assets): Consolidated $ 140,064 17.78 % $ 63,035 8.00 % No t Bank 121,947 15.48 % 63,020 8.00 % $ 78,775 10.00 % Tier 1 Capital (to risk weighted assets): Consolidated 130,210 16.53 % 47,276 6.00 % Not applicable Bank 112,093 14.23 % 47,265 6.00 % 63,020 8.00 % Tier 1 Capital (to average assets): Consolidated 130,210 15.91 % 32,744 4.00 % Not applicable Bank 112,093 13.70 % 32,723 4.00 % 40,904 5.00 % Tier 1 Common Equity Ratio (to risk weighted assets): Consolidated 94,838 12.04 % 35,457 4.50 % Not applicable Bank 112,093 14.23 % 35,449 4.50 % 51,204 6.50 % December 31, 2014 Total Capital (to risk weighted assets): Consolidated $ 115,471 17.16 % $ 53,819 8.00 % Not applicable Bank 112,725 16.77 % 53,778 8.00 % $ 67,223 10.00 % Tier 1 Capital (to risk weighted assets): Consolidated 107,029 15.91 % 26,909 4.00 % Not applicable Bank 104,289 15.51 % 26,889 4.00 % 40,334 6.00 % Tier 1 Capital (to average assets): Consolidated 107,029 14.32 % 29,901 4.00 % Not applicable Bank 104,289 13.96 % 29,880 4.00 % 37,351 5.00 % The Basel III Capital Rules, which became effective January 1, 2015, revised the prompt corrective action requirements by, among other things: (i) introducing a Common Equity Tier 1 ratio requirement at each level (other than critically undercapitalized), with the required Common Equity Tier 1 ratio being 6.5% for “well-capitalized” status; (ii) increasing the minimum Tier 1 capital ratio requirement for each category (other than critically undercapitalized), with the minimum Tier 1 capital ratio for “well-capitalized” status being 8% (compared to the prior ratio of 6%); and (iii) eliminating the former provision that provided that a bank with a composite supervisory rating of 1 may have a 3% Leverage Ratio and still be adequately capitalized. The Basel III Capital Rules do not change the total risk based capital requirement for any prompt corrective action category. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 9 – FAIR VALUE MEASUREMENTS ASC 820-10 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are independent, knowledgeable, and both able and willing to transact. ASC 820-10 requires the use of valuation techniques that are consistent with the market approach, the income approach, and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, ASC 820-10 establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1—Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2—Valuation is based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3—Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments: Cash and Cash Equivalents and Interest-Bearing Deposits in Banks The carrying amounts of cash and short-term instruments approximate fair values based on the short-term nature of the assets. Fair values of other interest-bearing deposits are estimated using discounted cash flow analyses based on current rates for similar types of deposits. Securities Available for Sale Where quoted prices are available in an active market, the Company classifies the securities within Level 1 of the valuation hierarchy. Securities are defined as both long and short positions. Level 1 securities include highly liquid government bonds and exchange-traded equities. If quoted market prices are not available, the Company estimates fair values using pricing models and discounted cash flows that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes and credit spreads. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include U.S. government and agency securities, corporate bonds and other securities. Mortgage-backed securities are included in Level 2 if observable inputs are available. In certain cases where there is limited activity or less transparency around inputs to the valuation, the Company classifies those securities in Level 3. Loans For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for certain mortgage loans (e.g., one-to-four family residential), credit card loans, and other consumer loans are based on quoted market prices of similar loans sold in conjunction with securitization transactions, adjusted for differences in loan characteristics. Fair values for other loans (e.g., commercial and agricultural loans) are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for non-performing loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. Loans Held for Sale The carrying value of loans held for sale generally approximates fair value based on the short-term nature of the assets. If management identifies a loan held for sale that will ultimately sell at a value less than its carrying value, it is recorded at the estimated value. Loan Servicing Rights Fair value is based on market prices for comparable loan servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. Other Real Estate Owned Loans on which the underlying collateral has been repossessed are adjusted to fair value upon transfer to other real estate owned. Subsequently, other real estate owned is carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral, or management’s estimation of the value of the collateral. Due to the significance of the unobservable inputs, all other real estate owned are classified as Level 3. Deposits The fair values disclosed for demand deposits (e.g., interest and non-interest checking, statement savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts of variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Other Borrowings The carrying amounts of federal funds purchased, other borrowings, and other short-term borrowings maturing within ninety days approximate their fair values. Fair values of other short-term borrowings are estimated using discounted cash flow analyses based on current market rates for similar types of borrowing arrangements. Advances from FHLB Current market rates for debt with similar terms and remaining maturities are used to estimate fair value of existing debt. Fair values are estimated using discounted cash flow analyses based on current market rates for similar types of borrowing arrangements. Subordinated Debentures The carrying amounts approximate fair value. Accrued Interest The carrying amounts approximate fair value. Commitments to Extend Credit and Standby Letters of Credit As of September 30, 2015 and December 31, 2014, the carrying and fair values of the commitment to extend credit and standby letters of credit are not considered significant. Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands): Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value September 30, 2015 Securities available for sale: U.S. government and agency securities $ — $ 2,010 $ — $ 2,010 Municipal securities — 46,962 — 46,962 Mortgage-backed securities — 36,811 — 36,811 Total assets at fair value $ — $ 85,783 $ — $ 85,783 December 31, 2014 Securities available for sale: U.S. government and agency securities $ — $ 2,005 $ — $ 2,005 Municipal securities — 41,849 — 41,849 Mortgage-backed securities — 37,428 — 37,428 Total assets at fair value $ — $ 81,282 $ — $ 81,282 Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, they are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table presents the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy for which a nonrecurring change in fair value has been recorded (dollars in thousands): Level 1 Inputs Level 2 Inputs Level 3 Inputs Impairment Losses September 30, 2015 Impaired loans $ — $ — $ 29,460 $ 2,287 Other real estate owned — — 3,024 182 Total assets at fair value $ — $ — $ 32,484 $ 2,469 December 31, 2014 Impaired loans $ — $ — $ 21,950 $ 2,894 Other real estate owned — — 7,137 1,190 Total assets at fair value $ — $ — $ 29,087 $ 4,084 The significant inputs used in the fair value measurements for Level 3 assets measured at fair value on a nonrecurring basis are as follows: September 30, 2015 Valuation Techniques Unobservable Inputs Range (Average) Impaired loans Evaluation of collateral Estimation of value NM* Other real estate owned Appraisal Appraisal adjustment 4%-28% (14%) December 31, 2014 Valuation Techniques Unobservable Inputs Range (Average) Impaired loans Evaluation of collateral Estimation of value NM* Other real estate owned Appraisal Appraisal adjustment 3%-28% (9%) * Not Meaningful. The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments are as follows (dollars in thousands): September 30, December 31, 2015 2014 Carrying Amount Fair Value Carrying Amount Fair Value Input Level Financial assets: Cash and cash equivalents $ 13,026 $ 13,026 $ 10,480 $ 10,480 1 FHLB Stock 3,507 3,507 1,252 1,252 2 Securities available for sale 85,783 85,783 81,282 81,282 2 Loans, net of allowance for loan losses 694,196 706,041 637,519 647,973 3 Loans held for sale 13,712 13,712 4,114 4,114 3 Accrued interest receivable 2,476 2,476 2,219 2,219 2 Loan servicing rights 7,721 10,191 7,746 10,043 3 Financial liabilities: Deposits: Time 414,912 421,208 383,639 388,141 3 Other deposits 221,309 221,309 221,830 221,830 1 Other borrowings 4,383 4,383 23,857 23,857 3 Advances from FHLB 64,000 65,130 28,000 28,510 3 Subordinated debentures 12,372 12,372 12,372 12,372 3 Accrued interest payable 1,273 1,273 1,284 1,284 2 |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | |
OTHER REAL ESTATE OWNED | NOTE 10 – OTHER REAL ESTATE OWNED Changes in other real estate owned are as follows (dollars in thousands): For the three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Balance, beginning of period $ 3,166 $ 11,445 $ 7,137 $ 16,083 Assets foreclosed 1,485 1,321 1,530 1,321 Write-down of other real estate owned — (44 ) (182 ) (729 ) Net gain (loss) on sales of other real estate owned 26 (173 ) (260 ) (235 ) Capitalized additions to other real estate owned — — 39 423 Proceeds from sale of other real estate owned (1,653 ) (4,400 ) (5,240 ) (8,714 ) Balance, end of period $ 3,024 $ 8,149 $ 3,024 $ 8,149 Expenses applicable to other real estate owned include the following (dollars in thousands): For the three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Net loss (gain) on sales of other real estate owned $ (26 ) $ 173 $ 260 $ 235 Write-down of other real estate owned — 44 182 729 Operating expenses, net of rental income 88 90 18 175 $ 62 $ 307 $ 460 $ 1,139 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 – COMMITMENTS AND CONTINGENCIES During the second quarter of 2015, the Company began construction on its new branch in Stevens Point, Wisconsin. The project is estimated to be completed during the first quarter of 2016 at a cost of $3.6 million, of which $1.5 million has been incurred as of September 30, 2015. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Earnings per common share ("EPS") is computed using the two-class method. Basic earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the applicable period. Diluted earnings per share is computed using the weighted-average number of shares determined for the basic earnings per common share plus the dilutive effect of share-based compensation using the treasury stock method. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2015 2014* 2015 2014* Net income from continuing operations $ 3,330 $ 2,271 $ 8,074 $ 6,128 Less: preferred stock dividends including SBLF 118 116 367 352 Income available to common shareholders for basic EPS $ 3,212 $ 2,155 $ 7,707 $ 5,776 Average number of common shares issued 6,545 5,248 6,428 5,247 Less: weighted average treasury shares 410 380 410 365 Less: weighted average nonvested equity incentive plan shares 401 404 383 417 Weighted average number of common shares outstanding 5,734 4,464 5,635 4,465 Effect of dilutive options 124 115 119 118 Weighted average number of common shares outstanding used to calculate diluted earnings per common share 5,858 4,579 5,754 4,583 * Adjusted for 10-for-1 stock split on April 4, 2014 |
SECURITIES AVAILABLE FOR SALE (
SECURITIES AVAILABLE FOR SALE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Available For Sale Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Available for Sale of Securities | The amortized cost and fair value of securities available for sale as of September 30, 2015 and December 31, 2014 are as follows (dollars in thousands): Amortized Unrealized Unrealized Fair Cost Gains Losses Value September 30, 2015 U.S. government and agency securities $ 2,004 $ 6 $ — $ 2,010 Municipal securities 46,580 387 (5 ) 46,962 Mortgage-backed securities 36,213 635 (37 ) 36,811 $ 84,797 $ 1,028 $ (42 ) $ 85,783 December 31, 2014 U.S. government and agency securities $ 2,006 $ 1 $ (2 ) $ 2,005 Municipal securities 41,751 237 (139 ) 41,849 Mortgage-backed securities 36,889 636 (97 ) 37,428 $ 80,646 $ 874 $ (238 ) $ 81,282 |
Schedule of Amortized Cost and Fair Value of Securities Available for Sale by Contractual Maturity | The amortized cost and fair value of securities at September 30, 2015 and December 31, 2014, by contractual maturity, are shown below (dollars in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair Cost Value September 30, 2015 Due in one year or less $ 5,318 $ 5,346 Due from one to five years 39,406 39,728 Due from five to ten years 3,860 3,898 Due after ten years — — Mortgage-backed securities 36,213 36,811 $ 84,797 $ 85,783 December 31, 2014 Due in one year or less $ 2,007 $ 2,011 Due from one to five years 41,750 41,843 Due from five to ten years — — Due after ten years — — Mortgage-backed securities 36,889 37,428 $ 80,646 $ 81,282 |
Schedule of Fair Value and Gross Unrealized Losses of Entity's Investment | The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temorarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2015 and December 31, 2014 (dollars in thousands): Less Than 12 Months 12 Months or Greater Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses September 30, 2015 U.S. government and agency securities $ — $ — $ — $ — $ — $ — Municipal securities 2,106 (5 ) 283 — 2,389 (5 ) Mortgage-backed securities 4,087 (20 ) 2,150 (17 ) 6,237 (37 ) $ 6,193 $ (25 ) $ 2,433 $ (17 ) $ 8,626 $ (42 ) December 31, 2014 U.S. government and agency securities $ 997 $ (2 ) $ — $ — $ 997 $ (2 ) Municipal securities 16,724 (100 ) 3,736 (39 ) 20,460 (139 ) Mortgage-backed securities 6,698 (33 ) 5,651 (64 ) 12,349 (97 ) $ 24,419 $ (135 ) $ 9,387 $ (103 ) $ 33,806 $ (238 ) |
LOANS (Tables)
LOANS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Components of Loans | The components of loans were as follows (dollars in thousands): September 30, December 31, 2015 2014 Agricultural loans $ 469,166 $ 415,164 Commercial real estate loans 147,638 137,517 Commercial loans 52,597 53,745 Residential real estate loans 34,326 40,885 Installment and consumer other 302 811 Total gross loans 704,029 648,122 Allowance for loan losses (9,833 ) (10,603 ) Loans, net $ 694,196 $ 637,519 |
Changes in Allowance for Loan Losses by Portfolio Segment | Changes in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2015 and 2014 were as follows (dollars in thousands): September 30, 2015 Agricultural Commercial Real Estate Commercial Residential Real Estate Installment and Consumer Other Unallocated Total Balance, beginning of year $ 3,456 $ 3,326 $ 2,420 $ 1,392 $ 9 $ — $ 10,603 Provision for (recovery of) loan losses 2,993 (1,673 ) (1,719 ) (920 ) (6 ) — (1,325 ) Loans charged off (1,145 ) (162 ) (415 ) (172 ) — — (1,894 ) Recoveries 47 743 1,196 463 — — 2,449 Balance, end of period $ 5,351 $ 2,234 $ 1,482 $ 763 $ 3 $ — $ 9,833 September 30, 2014 Agricultural Commercial Real Estate Commercial Residential Real Estate Installment and Consumer Other Unallocated Total Balance, beginning of year $ 3,144 $ 3,254 $ 2,172 $ 1,819 $ 3 $ 103 $ 10,495 Provision for (recovery of) loan losses 257 (199 ) 531 (222 ) — (367 ) — Loans charged off (115 ) — (103 ) — — — (218 ) Recoveries 17 61 18 — 1 — 97 Balance, end of period $ 3,303 $ 3,116 $ 2,618 $ 1,597 $ 4 $ (264 ) $ 10,374 |
Balances in Allowance for Loan Losses and Recorded Investment and Unpaid Principal Balance in Loans by Portfolio Segment and Based on Impairment Method | The following tables present the balances in the allowance for loan losses and the recorded investment and unpaid principal balance in loans by portfolio segment and based on impairment method as of September 30, 2015 and December 31, 2014 (dollars in thousands) : September 30, 2015 Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Allowance for loan losses: Agricultural loans $ 935 $ 4,416 $ 5,351 Commercial real estate loans 295 1,939 2,234 Commercial loans 1,057 425 1,482 Residential real estate loans — 763 763 Installment and consumer other — 3 3 Total ending allowance for loan losses 2,287 7,546 9,833 Loans: Agricultural loans 20,599 448,567 469,166 Commercial real estate loans 5,891 141,747 147,638 Commercial loans 5,240 47,357 52,597 Residential real estate loans 17 34,309 34,326 Installment and consumer other — 302 302 Total loans 31,747 672,282 704,029 Net loans $ 29,460 $ 664,736 $ 694,196 December 31, 2014 Individually Evaluated for Impairment Collectively Evaluated for Impairment Total Allowance for loan losses: Agricultural loans $ 242 $ 3,214 $ 3,456 Commercial real estate loans 519 2,807 3,326 Commercial loans 1,848 572 2,420 Residential real estate loans 285 1,107 1,392 Installment and consumer other — 9 9 Total ending allowance for loan losses 2,894 7,709 10,603 Loans: Agricultural loans 10,897 404,267 415,164 Commercial real estate loans 3,041 134,476 137,517 Commercial loans 8,910 44,835 53,745 Residential real estate loans 1,996 38,889 40,885 Installment and consumer other — 811 811 Total loans 24,844 623,278 648,122 Net loans $ 21,950 $ 615,569 $ 637,519 |
Schedule of Aging of Recorded Investment in Past Due Loans | The following tables present the aging of the recorded investment in past due loans at September 30, 2015 and December 31, 2014 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Loans Not Past Due Total Loans September 30, 2015 Agricultural loans $ 730 $ 584 $ 1,989 $ 3,303 $ 465,863 $ 469,166 Commercial real estate loans — — 2,418 2,418 145,220 147,638 Commercial loans 185 — 2,907 3,092 49,505 52,597 Residential real estate loans — — 8 8 34,318 34,326 Installment and consumer other — — — — 302 302 Total $ 915 $ 584 $ 7,322 $ 8,821 $ 695,208 $ 704,029 December 31, 2014 Agricultural loans $ 355 $ 9 $ 238 $ 602 $ 414,562 $ 415,164 Commercial real estate loans — — 2,592 2,592 134,925 137,517 Commercial loans — 42 3,366 3,408 50,337 53,745 Residential real estate loans 6 — 534 540 40,345 40,885 Installment and consumer other — — — — 811 811 Total $ 361 $ 51 $ 6,730 $ 7,142 $ 640,980 $ 648,122 |
Nonaccrual, Restructured and Certain Past Due Loans | The following table lists information on nonaccrual, restructured, and certain past due loans (dollars in thousands): September 30, December 31, 2015 2014 Nonaccrual loans, 90 days or more past due $ 7,322 $ 6,730 Nonaccrual loans 30-89 days past due 642 200 Nonaccrual loans, less than 30 days past due 3,208 4,625 Restructured loans not on nonaccrual status 617 846 90 days or more past due and still accruing — — |
Recorded Investment in Nonaccrual and Loans Past Due 90 Days or More | The following table presents the recorded investment in nonaccrual and loans past due 90 days or more at September 30, 2015 and December 31, 2014 (dollars in thousands): September 30, December 31, 2015 2014 Agricultural loans $ 2,512 $ 1,293 Commercial real estate loans 4,899 5,163 Commercial loans 3,744 3,409 Residential real estate loans 17 1,690 Total $ 11,172 $ 11,555 |
TDRs by Loan Class | The following table presents the TDRs by loan class at September 30, 2015 and December 31, 2014 (in thousands): Non-Accrual Restructured and Accruing Total September 30, 2015 Agricultural loans $ 554 $ — $ 554 Commercial real estate loans 2,482 488 2,970 Commercial loans 239 129 368 Residential real estate loans — — — Installment and consumer other — — — Total $ 3,275 $ 617 $ 3,892 December 31, 2014 Agricultural loans $ — $ — $ — Commercial real estate loans 2,571 542 3,113 Commercial loans — 304 304 Residential real estate loans 1,156 — 1,156 Installment and consumer other — — — Total $ 3,727 $ 846 $ 4,573 |
Risk Category of Loans by Class of Loans | Based on the most recent analysis performed by management, the risk category of loans by class of loans is as follows as of September 30, 2015 and December 31, 2014 (dollars in thousands): As of September 30, 2015 Sound/ Acceptable/ Satisfactory/ Low Satisfactory Watch Special Mention Substandard Total Loans Agricultural loans $ 407,488 $ 37,940 $ 3,139 $ 20,599 $ 469,166 Commercial real estate loans 123,301 13,782 4,664 5,891 147,638 Commercial loans 40,435 5,459 1,463 5,240 52,597 Residential real estate loans 26,527 4,579 3,203 17 34,326 Installment and consumer other 302 — — — 302 Total $ 598,053 $ 61,760 $ 12,469 $ 31,747 $ 704,029 As of December 31, 2014 Sound/ Acceptable/ Satisfactory/ Low Satisfactory Watch Special Mention Substandard Total Loans Agricultural loans $ 342,598 $ 59,078 $ 2,591 $ 10,897 $ 415,164 Commercial real estate loans 104,609 23,540 6,327 3,041 137,517 Commercial loans 36,205 7,568 1,062 8,910 53,745 Residential real estate loans 29,738 6,288 2,863 1,996 40,885 Installment and consumer other 811 — — — 811 Total $ 513,961 $ 96,474 $ 12,843 $ 24,844 $ 648,122 |
LOAN SERVICING RIGHTS (Tables)
LOAN SERVICING RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Transfers And Servicing [Abstract] | |
Summary of Servicing Rights Capitalized and Amortized along with the Aggregate Activity in Related Valuation | The following summarizes servicing rights capitalized and amortized, along with the aggregate activity in related valuation allowances (dollars in thousands): September 30, December 31, 2015 2014 Loan servicing rights: Balance, beginning of period $ 7,746 $ 7,529 Additions 2,444 3,414 Disposals (1,039 ) (1,243 ) Amortization (1,430 ) (1,954 ) Balance, end of period $ 7,721 $ 7,746 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Deposits [Abstract] | |
Summary of Deposits | Deposits are summarized as follows at September 30, 2015 and December 31, 2014 (dollars in thousands): September 30, December 31, 2015 2014 Demand deposits $ 60,685 $ 81,534 Savings 160,624 140,296 Certificates of deposit 414,912 383,639 Total deposits $ 636,221 $ 605,469 |
EQUITY INCENTIVE PLAN (Tables)
EQUITY INCENTIVE PLAN (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Status and Changes in Stock Option Plan | The status of the Company’s Plan and changes in the Plan as of September 30, 2015 are as follows: September 30, 2015 Number of Options Weighted-Average Exercise Price Aggregate Intrinsic Value (1) Outstanding, beginning of year 336,051 $ 11.57 Granted 79,415 19.31 Exercised (10,000 ) 6.90 Forfeited/expired (5,000 ) 12.18 Outstanding, end of period 400,466 $ 13.21 $ 2,375 Options exercisable at period-end 240,400 $ 11.29 $ 1,887 Weighted-average fair value of options granted during the period (2) $ 4.99 (1) In thousands. The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on September 30, 2015 and December 31, 2014. This amount changes based on changes in the market value of the Company’s stock. (2) The fair value (present value of the estimated future benefit to the option holder) of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. |
Activity in Restricted Stock Awards | Activity in restricted stock awards (“RSA”) as of September 30, 2015 is as follows: September 30, 2015 RSAs Weighted Average Grant Price Outstanding, beginning of year 34,080 $ 12.88 Granted 14,379 19.71 Vested — — Forfeited/expired — — Outstanding, end of period 48,459 $ 14.90 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Capital Requirements [Abstract] | |
Summary of Actual Capital Amount and Ratio of Company's and Bank's | The Company’s and Bank’s actual capital amounts and ratios are presented in the following table (dollars in thousands): Actual Minimum For Capital Adequacy Purposes: Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions: Amount Ratio Amount Ratio Amount Ratio September 30, 2015 Total Capital (to risk weighted assets): Consolidated $ 140,064 17.78 % $ 63,035 8.00 % No t Bank 121,947 15.48 % 63,020 8.00 % $ 78,775 10.00 % Tier 1 Capital (to risk weighted assets): Consolidated 130,210 16.53 % 47,276 6.00 % Not applicable Bank 112,093 14.23 % 47,265 6.00 % 63,020 8.00 % Tier 1 Capital (to average assets): Consolidated 130,210 15.91 % 32,744 4.00 % Not applicable Bank 112,093 13.70 % 32,723 4.00 % 40,904 5.00 % Tier 1 Common Equity Ratio (to risk weighted assets): Consolidated 94,838 12.04 % 35,457 4.50 % Not applicable Bank 112,093 14.23 % 35,449 4.50 % 51,204 6.50 % December 31, 2014 Total Capital (to risk weighted assets): Consolidated $ 115,471 17.16 % $ 53,819 8.00 % Not applicable Bank 112,725 16.77 % 53,778 8.00 % $ 67,223 10.00 % Tier 1 Capital (to risk weighted assets): Consolidated 107,029 15.91 % 26,909 4.00 % Not applicable Bank 104,289 15.51 % 26,889 4.00 % 40,334 6.00 % Tier 1 Capital (to average assets): Consolidated 107,029 14.32 % 29,901 4.00 % Not applicable Bank 104,289 13.96 % 29,880 4.00 % 37,351 5.00 % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (dollars in thousands): Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value September 30, 2015 Securities available for sale: U.S. government and agency securities $ — $ 2,010 $ — $ 2,010 Municipal securities — 46,962 — 46,962 Mortgage-backed securities — 36,811 — 36,811 Total assets at fair value $ — $ 85,783 $ — $ 85,783 December 31, 2014 Securities available for sale: U.S. government and agency securities $ — $ 2,005 $ — $ 2,005 Municipal securities — 41,849 — 41,849 Mortgage-backed securities — 37,428 — 37,428 Total assets at fair value $ — $ 81,282 $ — $ 81,282 |
Financial Instruments Carried on Consolidated Balance Sheet for Which Nonrecurring Change in Fair Value Has Been Recorded | The following table presents the financial instruments carried on the consolidated balance sheet by caption and by level in the fair value hierarchy for which a nonrecurring change in fair value has been recorded (dollars in thousands): Level 1 Inputs Level 2 Inputs Level 3 Inputs Impairment Losses September 30, 2015 Impaired loans $ — $ — $ 29,460 $ 2,287 Other real estate owned — — 3,024 182 Total assets at fair value $ — $ — $ 32,484 $ 2,469 December 31, 2014 Impaired loans $ — $ — $ 21,950 $ 2,894 Other real estate owned — — 7,137 1,190 Total assets at fair value $ — $ — $ 29,087 $ 4,084 |
Significant Inputs Used in Fair Value Measurements for Level 3 Assets Measured on Nonrecurring Basis | The significant inputs used in the fair value measurements for Level 3 assets measured at fair value on a nonrecurring basis are as follows: September 30, 2015 Valuation Techniques Unobservable Inputs Range (Average) Impaired loans Evaluation of collateral Estimation of value NM* Other real estate owned Appraisal Appraisal adjustment 4%-28% (14%) December 31, 2014 Valuation Techniques Unobservable Inputs Range (Average) Impaired loans Evaluation of collateral Estimation of value NM* Other real estate owned Appraisal Appraisal adjustment 3%-28% (9%) |
Estimated Fair Values and Related Carrying or Notional Amounts of Financial Instruments | The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments are as follows (dollars in thousands): September 30, December 31, 2015 2014 Carrying Amount Fair Value Carrying Amount Fair Value Input Level Financial assets: Cash and cash equivalents $ 13,026 $ 13,026 $ 10,480 $ 10,480 1 FHLB Stock 3,507 3,507 1,252 1,252 2 Securities available for sale 85,783 85,783 81,282 81,282 2 Loans, net of allowance for loan losses 694,196 706,041 637,519 647,973 3 Loans held for sale 13,712 13,712 4,114 4,114 3 Accrued interest receivable 2,476 2,476 2,219 2,219 2 Loan servicing rights 7,721 10,191 7,746 10,043 3 Financial liabilities: Deposits: Time 414,912 421,208 383,639 388,141 3 Other deposits 221,309 221,309 221,830 221,830 1 Other borrowings 4,383 4,383 23,857 23,857 3 Advances from FHLB 64,000 65,130 28,000 28,510 3 Subordinated debentures 12,372 12,372 12,372 12,372 3 Accrued interest payable 1,273 1,273 1,284 1,284 2 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | |
Summary of Changes in Other Real Estate Owned | Changes in other real estate owned are as follows (dollars in thousands): For the three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Balance, beginning of period $ 3,166 $ 11,445 $ 7,137 $ 16,083 Assets foreclosed 1,485 1,321 1,530 1,321 Write-down of other real estate owned — (44 ) (182 ) (729 ) Net gain (loss) on sales of other real estate owned 26 (173 ) (260 ) (235 ) Capitalized additions to other real estate owned — — 39 423 Proceeds from sale of other real estate owned (1,653 ) (4,400 ) (5,240 ) (8,714 ) Balance, end of period $ 3,024 $ 8,149 $ 3,024 $ 8,149 |
Expenses Applicable to Other Real Estate Owned | Expenses applicable to other real estate owned include the following (dollars in thousands): For the three months ended For the nine months ended September 30, September 30, 2015 2014 2015 2014 Net loss (gain) on sales of other real estate owned $ (26 ) $ 173 $ 260 $ 235 Write-down of other real estate owned — 44 182 729 Operating expenses, net of rental income 88 90 18 175 $ 62 $ 307 $ 460 $ 1,139 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | [1] | Sep. 30, 2015 | Sep. 30, 2014 | [1] | |
Earnings Per Share [Abstract] | ||||||
Net income from continuing operations | $ 3,330 | $ 2,271 | $ 8,074 | $ 6,128 | ||
Less: preferred stock dividends including SBLF | 118 | 116 | 367 | 352 | ||
Income available to common shareholders for basic EPS | $ 3,212 | $ 2,155 | $ 7,707 | $ 5,776 | ||
Average number of common shares issued | 6,545 | 5,248 | 6,428 | 5,247 | ||
Less: weighted average treasury shares | 410 | 380 | 410 | 365 | ||
Less: weighted average nonvested equity incentive plan shares | 401 | 404 | 383 | 417 | ||
Weighted average number of common shares outstanding | 5,734 | 4,464 | 5,635 | 4,465 | ||
Effect of dilutive options | 124 | 115 | 119 | 118 | ||
Weighted average number of common shares outstanding used to calculate diluted earnings per common share | 5,858 | 4,579 | 5,754 | 4,583 | ||
[1] | Adjusted for 10-for-1 stock split on April 4, 2014 |
Earnings Per Share - Schedule30
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Parenthetical) (Details) | Apr. 04, 2014 |
Earnings Per Share [Abstract] | |
Stock split ratio | 10 |
Securities Available for Sale -
Securities Available for Sale - Schedule of Amortized Cost and Fair Value of Available for Sale of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 84,797 | $ 80,646 |
Unrealized Gains | 1,028 | 874 |
Unrealized Losses | (42) | (238) |
Fair Value | 85,783 | 81,282 |
U.S. Government and Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,004 | 2,006 |
Unrealized Gains | 6 | 1 |
Unrealized Losses | (2) | |
Fair Value | 2,010 | 2,005 |
Municipal securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 46,580 | 41,751 |
Unrealized Gains | 387 | 237 |
Unrealized Losses | (5) | (139) |
Fair Value | 46,962 | 41,849 |
Mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 36,213 | 36,889 |
Unrealized Gains | 635 | 636 |
Unrealized Losses | (37) | (97) |
Fair Value | $ 36,811 | $ 37,428 |
Securities Available for Sale32
Securities Available for Sale - Schedule of Amortized Cost and Fair Value of Securities Available for Sale by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available For Sale Securities [Abstract] | ||
Due in one year or less, Amortized Cost | $ 5,318 | $ 2,007 |
Due from one to five years, Amortized Cost | 39,406 | 41,750 |
Due from five to ten years, Amortized Cost | 3,860 | |
Mortgage-backed securities, Amortized Cost | 36,213 | 36,889 |
Amortized Cost | 84,797 | 80,646 |
Due in one year or less, Fair Value | 5,346 | 2,011 |
Due from one to five years, Fair Value | 39,728 | 41,843 |
Due from five to ten years, Fair Value | 3,898 | |
Mortgage-backed securities, Fair Value | 36,811 | 37,428 |
Fair Value | $ 85,783 | $ 81,282 |
Securities Available for Sale33
Securities Available for Sale - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Available For Sale Securities [Abstract] | ||
Realized gain (loss) on available-for-sale securities | $ 0 | $ 0 |
Securities Available for Sale34
Securities Available for Sale - Schedule of Fair Value and Gross Unrealized Losses of Entity's Investmen (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Investments with unrealized losses less than 12 months, fair value | $ 6,193 | $ 24,419 |
Investments with unrealized losses less than 12 months, unrealized losses | (25) | (135) |
Investments with unrealized losses 12 months or greater, fair value | 2,433 | 9,387 |
Investments with unrealized losses 12 months or greater, unrealized losses | (17) | (103) |
Investments with unrealized losses, fair value | 8,626 | 33,806 |
Investments with unrealized losses, unrealized losses | (42) | (238) |
U.S. Government and Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investments with unrealized losses less than 12 months, fair value | 997 | |
Investments with unrealized losses less than 12 months, unrealized losses | (2) | |
Investments with unrealized losses, fair value | 997 | |
Investments with unrealized losses, unrealized losses | (2) | |
Municipal securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investments with unrealized losses less than 12 months, fair value | 2,106 | 16,724 |
Investments with unrealized losses less than 12 months, unrealized losses | (5) | (100) |
Investments with unrealized losses 12 months or greater, fair value | 283 | 3,736 |
Investments with unrealized losses 12 months or greater, unrealized losses | (39) | |
Investments with unrealized losses, fair value | 2,389 | 20,460 |
Investments with unrealized losses, unrealized losses | (5) | (139) |
Mortgage-backed securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investments with unrealized losses less than 12 months, fair value | 4,087 | 6,698 |
Investments with unrealized losses less than 12 months, unrealized losses | (20) | (33) |
Investments with unrealized losses 12 months or greater, fair value | 2,150 | 5,651 |
Investments with unrealized losses 12 months or greater, unrealized losses | (17) | (64) |
Investments with unrealized losses, fair value | 6,237 | 12,349 |
Investments with unrealized losses, unrealized losses | $ (37) | $ (97) |
Loans - Components of Loans (De
Loans - Components of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Loans And Leases Receivable Net Reported Amount [Abstract] | ||||
Agricultural loans | $ 469,166 | $ 415,164 | ||
Commercial real estate loans | 147,638 | 137,517 | ||
Commercial loans | 52,597 | 53,745 | ||
Residential real estate loans | 34,326 | 40,885 | ||
Installment and consumer other | 302 | 811 | ||
Total gross loans | 704,029 | 648,122 | ||
Allowance for loan losses | (9,833) | (10,603) | $ (10,374) | $ (10,495) |
Loans, net | $ 694,196 | $ 637,519 |
Loans - Changes in Allowance fo
Loans - Changes in Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Balance, beginning of year | $ 10,603 | $ 10,495 |
Provision for (recovery of) loan losses | (1,325) | |
Loans charged off | (1,894) | (218) |
Recoveries | 2,449 | 97 |
Balance, end of period | 9,833 | 10,374 |
Agricultural | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Balance, beginning of year | 3,456 | 3,144 |
Provision for (recovery of) loan losses | 2,993 | 257 |
Loans charged off | (1,145) | (115) |
Recoveries | 47 | 17 |
Balance, end of period | 5,351 | 3,303 |
Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Balance, beginning of year | 3,326 | 3,254 |
Provision for (recovery of) loan losses | (1,673) | (199) |
Loans charged off | (162) | |
Recoveries | 743 | 61 |
Balance, end of period | 2,234 | 3,116 |
Commercial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Balance, beginning of year | 2,420 | 2,172 |
Provision for (recovery of) loan losses | (1,719) | 531 |
Loans charged off | (415) | (103) |
Recoveries | 1,196 | 18 |
Balance, end of period | 1,482 | 2,618 |
Residential Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Balance, beginning of year | 1,392 | 1,819 |
Provision for (recovery of) loan losses | (920) | (222) |
Loans charged off | (172) | |
Recoveries | 463 | |
Balance, end of period | 763 | 1,597 |
Installment and consumer other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Balance, beginning of year | 9 | 3 |
Provision for (recovery of) loan losses | (6) | |
Recoveries | 1 | |
Balance, end of period | $ 3 | 4 |
Unallocated | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Balance, beginning of year | 103 | |
Provision for (recovery of) loan losses | (367) | |
Balance, end of period | $ (264) |
Loans - Balances in Allowance f
Loans - Balances in Allowance for Loan Losses and Recorded Investment and Unpaid Principal Balance in Loans by Portfolio Segment and Based on Impairment Method (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Allowance for loan losses: | ||
Allowance for loan losses individually evaluated for impairment | $ 2,287 | $ 2,894 |
Allowance for loan losses collectively evaluated for impairment | 7,546 | 7,709 |
Total | 9,833 | 10,603 |
Loans: | ||
Loans individually evaluated for impairment | 31,747 | 24,844 |
Loans collectively evaluated for impairment | 672,282 | 623,278 |
Total gross loans | 704,029 | 648,122 |
Loans individually evaluated for impairment | 29,460 | 21,950 |
Loans collectively evaluated for impairment | 664,736 | 615,569 |
Loans, net | 694,196 | 637,519 |
Agricultural Loans | ||
Allowance for loan losses: | ||
Allowance for loan losses individually evaluated for impairment | 935 | 242 |
Allowance for loan losses collectively evaluated for impairment | 4,416 | 3,214 |
Total | 5,351 | 3,456 |
Loans: | ||
Loans individually evaluated for impairment | 20,599 | 10,897 |
Loans collectively evaluated for impairment | 448,567 | 404,267 |
Total gross loans | 469,166 | 415,164 |
Commercial Real Estate Loans | ||
Allowance for loan losses: | ||
Allowance for loan losses individually evaluated for impairment | 295 | 519 |
Allowance for loan losses collectively evaluated for impairment | 1,939 | 2,807 |
Total | 2,234 | 3,326 |
Loans: | ||
Loans individually evaluated for impairment | 5,891 | 3,041 |
Loans collectively evaluated for impairment | 141,747 | 134,476 |
Total gross loans | 147,638 | 137,517 |
Commercial Loans | ||
Allowance for loan losses: | ||
Allowance for loan losses individually evaluated for impairment | 1,057 | 1,848 |
Allowance for loan losses collectively evaluated for impairment | 425 | 572 |
Total | 1,482 | 2,420 |
Loans: | ||
Loans individually evaluated for impairment | 5,240 | 8,910 |
Loans collectively evaluated for impairment | 47,357 | 44,835 |
Total gross loans | 52,597 | 53,745 |
Residential Real Estate Loans | ||
Allowance for loan losses: | ||
Allowance for loan losses individually evaluated for impairment | 285 | |
Allowance for loan losses collectively evaluated for impairment | 763 | 1,107 |
Total | 763 | 1,392 |
Loans: | ||
Loans individually evaluated for impairment | 17 | 1,996 |
Loans collectively evaluated for impairment | 34,309 | 38,889 |
Total gross loans | 34,326 | 40,885 |
Installment and consumer other | ||
Allowance for loan losses: | ||
Allowance for loan losses collectively evaluated for impairment | 3 | 9 |
Total | 3 | 9 |
Loans: | ||
Loans collectively evaluated for impairment | 302 | 811 |
Total gross loans | $ 302 | $ 811 |
Loans - Schedule of Aging of Re
Loans - Schedule of Aging of Recorded Investment in Past Due Loans (Details ) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | $ 8,821 | $ 7,142 |
Loans Not Past Due | 695,208 | 640,980 |
Total gross loans | 704,029 | 648,122 |
Financing Receivables 30 To 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 915 | 361 |
Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 584 | 51 |
Financing Receivables Equal To Greater Than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 7,322 | 6,730 |
Agricultural Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 3,303 | 602 |
Loans Not Past Due | 465,863 | 414,562 |
Total gross loans | 469,166 | 415,164 |
Agricultural Loans | Financing Receivables 30 To 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 730 | 355 |
Agricultural Loans | Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 584 | 9 |
Agricultural Loans | Financing Receivables Equal To Greater Than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 1,989 | 238 |
Commercial Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 2,418 | 2,592 |
Loans Not Past Due | 145,220 | 134,925 |
Total gross loans | 147,638 | 137,517 |
Commercial Real Estate Loans | Financing Receivables Equal To Greater Than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 2,418 | 2,592 |
Commercial Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 3,092 | 3,408 |
Loans Not Past Due | 49,505 | 50,337 |
Total gross loans | 52,597 | 53,745 |
Commercial Loans | Financing Receivables 30 To 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 185 | |
Commercial Loans | Financing Receivables 60 To 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 42 | |
Commercial Loans | Financing Receivables Equal To Greater Than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 2,907 | 3,366 |
Residential Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 8 | 540 |
Loans Not Past Due | 34,318 | 40,345 |
Total gross loans | 34,326 | 40,885 |
Residential Real Estate Loans | Financing Receivables 30 To 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 6 | |
Residential Real Estate Loans | Financing Receivables Equal To Greater Than 90 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 8 | 534 |
Installment and consumer other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Not Past Due | 302 | 811 |
Total gross loans | $ 302 | $ 811 |
Loans - Nonaccrual, Restructure
Loans - Nonaccrual, Restructured and Certain Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Nonaccrual loans, past due | $ 8,821 | $ 7,142 |
Restructured loans not on nonaccrual status | 617 | 846 |
Financing Receivables Equal To Greater Than 90 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Nonaccrual loans, past due | 7,322 | 6,730 |
Financing Receivables 30 To 89 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Nonaccrual loans, past due | 642 | 200 |
Financing Receivables 1 To 29 Days Past Due | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Nonaccrual loans, past due | $ 3,208 | $ 4,625 |
Loans - Recorded Investment in
Loans - Recorded Investment in Nonaccrual and Loans Past Due 90 Days or More (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment in nonaccrual and loans past due 90 days or more | $ 11,172 | $ 11,555 |
Agricultural Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment in nonaccrual and loans past due 90 days or more | 2,512 | 1,293 |
Commercial Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment in nonaccrual and loans past due 90 days or more | 4,899 | 5,163 |
Commercial Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment in nonaccrual and loans past due 90 days or more | 3,744 | 3,409 |
Residential Real Estate Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment in nonaccrual and loans past due 90 days or more | $ 17 | $ 1,690 |
Loans - Additional Information
Loans - Additional Information (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Average recorded investment in total impaired loans | $ 28,296,000 | $ 38,565,000 |
Interest income recognized on total impaired loans | 1,331,000 | 1,326,000 |
Interest income recognized for nonaccrual loans | 605,000 | 778,000 |
Specific reserve to customers whose loan terms have been modified in TDR | 214,000 | 538,000 |
Additional lending commitments to customers with outstanding loans that are classified as TDRs | 0 | 0 |
Minimum exposure for annual internal credit review | 300,000 | |
TDR Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
TDR loans, unfunded commitments | $ 0 | $ 0 |
Loans - TDRs by loan class (Det
Loans - TDRs by loan class (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | $ 11,172 | $ 11,555 |
Restructured and Accruing | 617 | 846 |
TDR Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | 3,275 | 3,727 |
Restructured and Accruing | 617 | 846 |
Total | 3,892 | 4,573 |
Agricultural Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | 2,512 | 1,293 |
Agricultural Loans | TDR Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | 554 | |
Total | 554 | |
Commercial Real Estate Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | 4,899 | 5,163 |
Commercial Real Estate Loans | TDR Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | 2,482 | 2,571 |
Restructured and Accruing | 488 | 542 |
Total | 2,970 | 3,113 |
Commercial Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | 3,744 | 3,409 |
Commercial Loans | TDR Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | 239 | |
Restructured and Accruing | 129 | 304 |
Total | 368 | 304 |
Residential Real Estate Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | $ 17 | 1,690 |
Residential Real Estate Loans | TDR Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-Accrual | 1,156 | |
Total | $ 1,156 |
Loans - Risk Category of Loans
Loans - Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts Notes And Loans Receivable [Line Items] | ||
Agricultural loans | $ 469,166 | $ 415,164 |
Commercial real estate loans | 147,638 | 137,517 |
Commercial loans | 52,597 | 53,745 |
Residential real estate loans | 34,326 | 40,885 |
Installment and consumer other | 302 | 811 |
Total gross loans | 704,029 | 648,122 |
Sound/ Acceptable/ Satisfactory/ Low Satisfactory | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Agricultural loans | 407,488 | 342,598 |
Commercial real estate loans | 123,301 | 104,609 |
Commercial loans | 40,435 | 36,205 |
Residential real estate loans | 26,527 | 29,738 |
Installment and consumer other | 302 | 811 |
Total gross loans | 598,053 | 513,961 |
Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Agricultural loans | 37,940 | 59,078 |
Commercial real estate loans | 13,782 | 23,540 |
Commercial loans | 5,459 | 7,568 |
Residential real estate loans | 4,579 | 6,288 |
Total gross loans | 61,760 | 96,474 |
Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Agricultural loans | 3,139 | 2,591 |
Commercial real estate loans | 4,664 | 6,327 |
Commercial loans | 1,463 | 1,062 |
Residential real estate loans | 3,203 | 2,863 |
Total gross loans | 12,469 | 12,843 |
Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Agricultural loans | 20,599 | 10,897 |
Commercial real estate loans | 5,891 | 3,041 |
Commercial loans | 5,240 | 8,910 |
Residential real estate loans | 17 | 1,996 |
Total gross loans | $ 31,747 | $ 24,844 |
Loan Servicing Rights - Additio
Loan Servicing Rights - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Servicing Assets At Fair Value [Line Items] | ||
Unpaid principal balance of mortgage | $ 468,200 | $ 429,300 |
Servicing assets and servicing liabilities at fair value, assumptions used to estimate fair value, discount rate | 10.00% | |
Minimum | ||
Servicing Assets At Fair Value [Line Items] | ||
Servicing assets and servicing liabilities at fair value, assumptions used to estimate fair value, Prepayment speed | 4.00% | |
Maximum | ||
Servicing Assets At Fair Value [Line Items] | ||
Servicing assets and servicing liabilities at fair value, assumptions used to estimate fair value, Prepayment speed | 9.00% | |
Level 3 Inputs | ||
Servicing Assets At Fair Value [Line Items] | ||
Loan servicing rights, fair value | $ 10,191 | $ 10,043 |
Loan Servicing Rights - Summary
Loan Servicing Rights - Summary of Servicing Rights Capitalized and Amortized along with the Aggregate Activity in Related Valuation (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Transfers And Servicing [Abstract] | ||
Balance, beginning of period | $ 7,746 | $ 7,529 |
Additions | 2,444 | 3,414 |
Disposals | (1,039) | (1,243) |
Amortization | (1,430) | (1,954) |
Balance, end of period | $ 7,721 | $ 7,746 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Demand deposits | $ 60,685 | $ 81,534 |
Savings | 160,624 | 140,296 |
Certificates of deposit | 414,912 | 383,639 |
Total deposits | $ 636,221 | $ 605,469 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Brokered deposits | $ 158.3 | $ 125.4 |
Equity Incentive Plan - Status
Equity Incentive Plan - Status and Changes in Stock Option Plan (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)$ / sharesshares | ||
Number of Options | ||
Options, Outstanding beginning of year | shares | 336,051 | |
Options, Granted | shares | 79,415 | |
Options, Exercised | shares | (10,000) | |
Options, Forfeited/expired | shares | (5,000) | |
Options, Outstanding end of period | shares | 400,466 | |
Options exercisable at period-end | shares | 240,400 | |
Weighted-Average Exercise Price | ||
Weighted Average Exercise price, Outstanding, beginning of year | $ 11.57 | |
Weighted Average Exercise Price, Granted | 19.31 | |
Weighted Average Exercise Price, Exercised | 6.90 | |
Weighted Average Exercise Price, Forfeited/expired | 12.18 | |
Weighted Average Exercise Price, Outstanding, end of period | 13.21 | |
Weighted Average Exercise Price, Options exercisable at period-end | 11.29 | |
Weighted-average fair value of options granted during the period | $ 4.99 | [1] |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value, Outstanding, end of period | $ | $ 2,375 | [2] |
Aggregate Intrinsic Value, Options exercisable at period-end | $ | $ 1,887 | [2] |
[1] | The fair value (present value of the estimated future benefit to the option holder) of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. | |
[2] | In thousands. The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on September 30, 2015 and December 31, 2014. This amount changes based on changes in the market value of the Company’s stock. |
Equity Incentive Plan - Activit
Equity Incentive Plan - Activity in Restricted Stock Awards (Details) - RSAs | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Number of RSAs | |
RSAs Outstanding, beginning of year | shares | 34,080 |
RSAs Granted | shares | 14,379 |
RSAs Outstanding, end of period | shares | 48,459 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Price Outstanding, Beginning of year | $ 12.88 |
Weighted Average Grant Price Outstanding, Granted | 19.71 |
Weighted Average Grant Price Outstanding, End of year | $ 14.90 |
Equity Incentive Plan - Additio
Equity Incentive Plan - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation expense | $ 266,000 | $ 110,000 |
Unrecognized share-based compensation expense related to nonvested options amounted | $ 728,000 | |
Employee Stock Option | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized share-based compensation expense related to nonvested options amounted, weighted average period of recognition | 2 years 7 months 28 days |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Actual Capital Amounts and Ratios of Company's and Bank's (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total Capital (to risk weighted assets), Actual Amount | $ 140,064 | $ 115,471 |
Total Capital (to risk weighted assets), Actual Ratio | 17.78% | 17.16% |
Total Capital (to risk weighted assets), Minimum For Capital Adequacy Purpose, Amount | $ 63,035 | $ 53,819 |
Total Capital (to risk weighted assets), Minimum For Capital Adequacy Purpose, Ratio | 8.00% | 8.00% |
Tier 1 Capital (to risk weighted assets), Actual Amount | $ 130,210 | $ 107,029 |
Tier 1 Capital (to risk weighted assets), Actual Ratio | 16.53% | 15.91% |
Tier 1 Capital (to risk weighted assets), Minimum For Capital Adequacy Purposes, Amount | $ 47,276 | $ 26,909 |
Tier 1 Capital (to risk weighted assets), Minimum For Capital Adequacy Purposes, Ratio | 6.00% | 4.00% |
Tier 1 Capital (to average assets), Actual Amount | $ 130,210 | $ 107,029 |
Tier 1 Capital (to average assets), Actual Ratio | 15.91% | 14.32% |
Tier 1 Capital (to average assets), Minimum To Be Adequately Capitalized Under Prompt Corrective Action Provisions, Amount | $ 32,744 | $ 29,901 |
Tier 1 Capital (to average assets), Minimum To Be Adequately Capitalized Under Prompt Corrective Action Provisions, Ratio | 4.00% | 4.00% |
Tier 1 Common Equity Ratio (to risk weighted assets), Actual Amount | $ 94,838 | |
Tier 1 Common Equity Ratio (to risk weighted assets), Actual Ratio | 12.04% | |
Tier 1 Common Equity Ratio (to risk weighted assets), Minimum For Capital Adequacy Purposes, Amount | $ 35,457 | |
Tier 1 Common Equity Ratio (to risk weighted assets), Minimum For Capital Adequacy Purposes, Ratio | 4.50% | |
Bank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total Capital (to risk weighted assets), Actual Amount | $ 121,947 | $ 112,725 |
Total Capital (to risk weighted assets), Actual Ratio | 15.48% | 16.77% |
Total Capital (to risk weighted assets), Minimum For Capital Adequacy Purpose, Amount | $ 63,020 | $ 53,778 |
Total Capital (to risk weighted assets), Minimum For Capital Adequacy Purpose, Ratio | 8.00% | 8.00% |
Total Capital (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 78,775 | $ 67,223 |
Total Capital (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Tier 1 Capital (to risk weighted assets), Actual Amount | $ 112,093 | $ 104,289 |
Tier 1 Capital (to risk weighted assets), Actual Ratio | 14.23% | 15.51% |
Tier 1 Capital (to risk weighted assets), Minimum For Capital Adequacy Purposes, Amount | $ 47,265 | $ 26,889 |
Tier 1 Capital (to risk weighted assets), Minimum For Capital Adequacy Purposes, Ratio | 6.00% | 4.00% |
Tier 1 Capital (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 63,020 | $ 40,334 |
Tier 1 Capital (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 6.00% |
Tier 1 Capital (to average assets), Actual Amount | $ 112,093 | $ 104,289 |
Tier 1 Capital (to average assets), Actual Ratio | 13.70% | 13.96% |
Tier 1 Capital (to average assets), Minimum To Be Adequately Capitalized Under Prompt Corrective Action Provisions, Amount | $ 32,723 | $ 29,880 |
Tier 1 Capital (to average assets), Minimum To Be Adequately Capitalized Under Prompt Corrective Action Provisions, Ratio | 4.00% | 4.00% |
Tier 1 Capital (to average assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 40,904 | $ 37,351 |
Tier 1 Capital (to average assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Tier 1 Common Equity Ratio (to risk weighted assets), Actual Amount | $ 112,093 | |
Tier 1 Common Equity Ratio (to risk weighted assets), Actual Ratio | 14.23% | |
Tier 1 Common Equity Ratio (to risk weighted assets), Minimum For Capital Adequacy Purposes, Amount | $ 35,449 | |
Tier 1 Common Equity Ratio (to risk weighted assets), Minimum For Capital Adequacy Purposes, Ratio | 4.50% | |
Tier 1 Common Equity Ratio (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 51,204 | |
Tier 1 Common Equity Ratio (to risk weighted assets), Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 85,783 | $ 81,282 |
Level 2 Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 85,783 | 81,282 |
Fair Value on a Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 85,783 | 81,282 |
Fair Value on a Recurring Basis | Level 2 Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 85,783 | 81,282 |
Fair Value on a Recurring Basis | U.S. Government and Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 2,010 | 2,005 |
Fair Value on a Recurring Basis | U.S. Government and Agency Securities | Level 2 Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 2,010 | 2,005 |
Fair Value on a Recurring Basis | Municipal securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 46,962 | 41,849 |
Fair Value on a Recurring Basis | Municipal securities | Level 2 Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 46,962 | 41,849 |
Fair Value on a Recurring Basis | Mortgage-backed securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | 36,811 | 37,428 |
Fair Value on a Recurring Basis | Mortgage-backed securities | Level 2 Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair Value | $ 36,811 | $ 37,428 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Instruments Carried on Consolidated Balance Sheet for Which Nonrecurring Change in Fair Value Has Been Recorded (Details) - Fair Value on a Nonrecurring Basis - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment Losses | $ 2,469 | $ 4,084 |
Level 3 Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 32,484 | 29,087 |
Impaired Loans | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment Losses | 2,287 | 2,894 |
Impaired Loans | Level 3 Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 29,460 | 21,950 |
Other Real Estate Owned | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment Losses | 182 | 1,190 |
Other Real Estate Owned | Level 3 Inputs | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 3,024 | $ 7,137 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Inputs Used in Fair Value Measurements for Level 3 Assets Measured on Nonrecurring Basis (Details) - Level 3 Inputs | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Impaired Loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Valuation Techniques | Evaluation of collateral | |
Unobservable Inputs | Estimation of value | |
Other Real Estate Owned | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Valuation Techniques | Appraisal | |
Unobservable Inputs | Appraisal adjustment | |
Other Real Estate Owned | Minimum | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Range (Average) | 4.00% | 3.00% |
Other Real Estate Owned | Maximum | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Range (Average) | 28.00% | 28.00% |
Other Real Estate Owned | Weighted Average | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Range (Average) | 14.00% | 9.00% |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values and Related Carrying or Notional Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Financial assets: | ||||
Cash and cash equivalents | $ 13,026 | $ 10,480 | $ 43,726 | $ 71,780 |
FHLB Stock | 3,507 | 1,252 | ||
Securities available for sale | 85,783 | 81,282 | ||
Loans, net of allowance for loan losses | 694,196 | 637,519 | ||
Loans held for sale | 13,712 | 4,114 | ||
Accrued interest receivable | 2,476 | 2,219 | ||
Loan servicing rights | 7,721 | 7,746 | $ 7,529 | |
Financial liabilities: | ||||
Deposit | 636,221 | 605,469 | ||
Other borrowings | 4,383 | 23,857 | ||
Advances from FHLB | 64,000 | 28,000 | ||
Subordinated debentures | 12,372 | 12,372 | ||
Accrued interest payable | 1,273 | 1,284 | ||
Other Deposits | ||||
Financial liabilities: | ||||
Deposit | 221,309 | 221,830 | ||
Level 3 Inputs | ||||
Financial assets: | ||||
Loans, net of allowance for loan losses, Fair Value | 706,041 | 647,973 | ||
Loans held for sale, Fair Value | 13,712 | 4,114 | ||
Loan servicing rights, fair value | 10,191 | 10,043 | ||
Financial liabilities: | ||||
Other borrowings | 4,383 | 23,857 | ||
Advances from FHLB | 64,000 | 28,000 | ||
Subordinated debentures | 12,372 | 12,372 | ||
Other borrowings, Fair Value | 4,383 | 23,857 | ||
Advances from FHLB, Fair Value | 65,130 | 28,510 | ||
Subordinated debentures, Fair Value | 12,372 | 12,372 | ||
Level 3 Inputs | Bank Time Deposits | ||||
Financial liabilities: | ||||
Deposit | 414,912 | 383,639 | ||
Level 3 Inputs | Other Deposits | ||||
Financial liabilities: | ||||
Deposits, Fair Value | 421,208 | 388,141 | ||
Level 1 Inputs | ||||
Financial assets: | ||||
Cash and cash equivalents, Fair Value | 13,026 | 10,480 | ||
Level 1 Inputs | Other Deposits | ||||
Financial liabilities: | ||||
Deposits, Fair Value | 221,309 | 221,830 | ||
Level 2 Inputs | ||||
Financial assets: | ||||
Securities available for sale | 85,783 | 81,282 | ||
FHLB Stock, Fair Value | 3,507 | 1,252 | ||
Accrued interest receivable, Fair Value | 2,476 | 2,219 | ||
Financial liabilities: | ||||
Accrued interest payable, Fair Value | $ 1,273 | $ 1,284 |
Other Real Estate Owned - Summa
Other Real Estate Owned - Summary of Changes in Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | ||||
Balance, beginning of period | $ 3,166 | $ 11,445 | $ 7,137 | $ 16,083 |
Assets foreclosed | 1,485 | 1,321 | 1,530 | 1,321 |
Write-down of other real estate owned | (44) | (182) | (729) | |
Net gain (loss) on sales of other real estate owned | 26 | (173) | (260) | (235) |
Capitalized additions to other real estate owned | 39 | 423 | ||
Proceeds from sale of other real estate owned | (1,653) | (4,400) | (5,240) | (8,714) |
Balance, end of period | $ 3,024 | $ 8,149 | $ 3,024 | $ 8,149 |
Other Real Estate Owned - Expen
Other Real Estate Owned - Expenses Applicable to Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | ||||
Realized loss on sales of other real estate owned | $ (26) | $ 173 | $ 260 | $ 235 |
Write-down of other real estate owned | 44 | 182 | 729 | |
Operating expenses, net of rental income | 88 | 90 | 18 | 175 |
Total Expenses | $ 62 | $ 307 | $ 460 | $ 1,139 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - Stevens Point, Wisconsin - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Sep. 30, 2015 | |
Commitments And Contingencies Disclosure [Line Items] | ||
Construction of new branch incurred cost | $ 1.5 | |
Scenario, Forecast | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Construction of new branch estimated cost | $ 3.6 |