Document and Entity Information
Document and Entity Information - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Aug. 07, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FIRST MID ILLINOIS BANCSHARES INC | |
Entity Central Index Key | 700,565 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $ 107,610,000 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 8,422,018 | |
Document Period End Date | Jun. 30, 2015 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Deposits: | ||
Non-interest bearing | $ 226,229 | $ 222,116 |
Interest bearing | 1,039,970 | 1,049,961 |
Total deposits | 1,266,199 | 1,272,077 |
Cash and due from banks: | ||
Non-interest bearing | 33,219 | 40,716 |
Interest bearing | 12,623 | 10,520 |
Federal funds sold | 492 | 494 |
Cash and cash equivalents | 46,334 | 51,730 |
Investment securities: | ||
Available-for-sale, at fair value | 421,923 | 377,856 |
Held-to-maturity, at amortized cost (estimated fair value of $44,505 and $53,937 at June 30, 2015 and December 31, 2014, respectively) | 43,973 | 53,650 |
Loans held for sale | 2,576 | 1,958 |
Loans | 1,056,527 | 1,060,448 |
Less allowance for loan losses | (13,931) | (13,682) |
Net loans | 1,042,596 | 1,046,766 |
Interest receivable | 6,044 | 6,828 |
Other real estate owned | 278 | 263 |
Premises and equipment, net | 27,208 | 27,352 |
Goodwill, net | 25,753 | 25,753 |
Intangible assets, net | 1,533 | 1,844 |
Other assets | 15,902 | 13,103 |
Total assets | 1,634,120 | 1,607,103 |
Liabilities and Stockholders' Equity | ||
Securities sold under agreements to repurchase | 117,468 | 121,869 |
Interest payable | 302 | 285 |
FHLB borrowings | 25,000 | 20,000 |
Junior subordinated debentures | 20,620 | 20,620 |
Dividends Payable | 550 | 530 |
Other liabilities | 6,086 | 6,806 |
Total liabilities | 1,436,225 | 1,442,187 |
Stockholders' Equity | ||
Convertible preferred stock, no par value; authorized 1,000,000 shares; issued 5,500 shares in 2015 and 2014 | 27,400 | 27,400 |
Common stock, $4 par value; authorized 18,000,000 shares; issued 8,422,018 shares in 2015 and 7,529,815 shares in 2014 | 37,868 | 32,119 |
Additional paid-in capital | 78,979 | 55,607 |
Retained earnings | 67,021 | 61,956 |
Deferred compensation | 2,997 | 3,329 |
Accumulated other comprehensive loss | (894) | (875) |
Less treasury stock at cost, 545,041 in 2015 and 496,497 shares in 2014 | (15,476) | (14,620) |
Total stockholders’ equity | 197,895 | 164,916 |
Total liabilities and stockholders’ equity | $ 1,634,120 | $ 1,607,103 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investment securities: | ||
Held-to-maturity, at fair value | $ 44,505 | $ 53,937 |
Stockholders Equity | ||
Convertible preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Convertible preferred stock, authorized (in shares) | 1,000,000 | 1,000,000 |
Convertible preferred stock, issued (in shares) | 5,500 | 5,500 |
Common stock, par value (in dollars per share) | $ 4 | $ 4 |
Common stock, authorized (in shares) | 18,000,000 | 18,000,000 |
Common stock, issued (in shares) | 8,422,018 | 7,529,815 |
Treasury stock (in shares) | 545,041 | 496,497 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest income: | ||||
Interest and fees on loans | $ 11,724 | $ 11,039 | $ 22,776 | $ 21,851 |
Interest on investment securities | 2,430 | 2,545 | 4,791 | 5,068 |
Interest on deposits with other financial institutions | 18 | 16 | 44 | 43 |
Total interest income | 14,172 | 13,600 | 27,611 | 26,962 |
Interest expense: | ||||
Interest on deposits | 513 | 583 | 1,045 | 1,192 |
Interest on securities sold under agreements to repurchase | 15 | 10 | 29 | 22 |
Interest on FHLB borrowings | 157 | 65 | 310 | 133 |
Interest on other borrowings | 13 | 1 | 13 | 1 |
Interest on subordinated debentures | 130 | 129 | 258 | 255 |
Total interest expense | 828 | 788 | 1,655 | 1,603 |
Net interest income | 13,344 | 12,812 | 25,956 | 25,359 |
Provision for loan losses | 143 | 128 | 408 | 451 |
Net interest income after provision for loan losses | 13,201 | 12,684 | 25,548 | 24,908 |
Other income: | ||||
Trust revenues | 860 | 848 | 1,780 | 1,781 |
Brokerage commissions | 306 | 233 | 584 | 483 |
Insurance commissions | 474 | 441 | 1,109 | 999 |
Service charges | 1,278 | 1,353 | 2,467 | 2,497 |
Securities gains, net | 1 | 543 | 230 | 734 |
Mortgage banking revenue, net | 210 | 158 | 377 | 256 |
ATM / debit card revenue | 1,018 | 1,002 | 2,024 | 1,975 |
Other | 390 | 412 | 765 | 746 |
Total other income | 4,537 | 4,990 | 9,336 | 9,471 |
Other expense: | ||||
Salaries and employee benefits | 6,297 | 6,054 | 12,353 | 12,107 |
Net occupancy and equipment expense | 1,926 | 2,114 | 3,905 | 4,263 |
Net Other Real Estate Owned (Income) Expense | 9 | (39) | 1 | (18) |
FDIC insurance | 202 | 199 | 405 | 405 |
Amortization of intangible assets | 156 | 163 | 311 | 325 |
Stationery and supplies | 143 | 173 | 295 | 328 |
Legal and professional | 600 | 677 | 1,182 | 1,239 |
Marketing and donations | 277 | 245 | 494 | 509 |
Other | 1,620 | 1,628 | 3,088 | 3,016 |
Total other expense | 11,230 | 11,214 | 22,034 | 22,174 |
Income before income taxes | 6,508 | 6,460 | 12,850 | 12,205 |
Income taxes | 2,352 | 2,431 | 4,655 | 4,569 |
Net income | 4,156 | 4,029 | 8,195 | 7,636 |
Dividends on preferred shares | 550 | 1,104 | 1,100 | 2,208 |
Net income available to common stockholders | $ 3,606 | $ 2,925 | $ 7,095 | $ 5,428 |
Per share data: | ||||
Basic earnings per common share | $ 0.50 | $ 0.49 | $ 1 | $ 0.92 |
Diluted net income per common share available to common stockholders | 0.49 | 0.48 | 0.97 | 0.91 |
Cash dividends declared per common share | $ 0.29 | $ 0.26 | $ 0.29 | $ 0.26 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,156 | $ 4,029 | $ 8,195 | $ 7,636 |
Other Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) on available-for-sale securities, net of taxes of $1,919 and $(1,904) for three months ended June 30, 2015 and 2014, respectively and $47 and $(3,532) for six months ended June 30, 2015 and 2014, respectively. | (3,001) | 2,981 | (75) | 5,530 |
Amortized holding losses on held-to-maturity securities transferred from available-for-sale, net of taxes of $(57) and $0 for three months ended March 31, 2015 and 2014, respectively. | 106 | 0 | 196 | 0 |
Less: reclassification adjustment for realized gains included in net income net of taxes of $0 and $212 for three months ended June 30, 2015 and 2014, respectively and $90 and $286 for six months ended June 30, 2015 and 2014, respectively. | (1) | (331) | (140) | (448) |
Other comprehensive income (loss), net of taxes | (2,896) | 2,650 | (19) | 5,082 |
Comprehensive income | $ 1,260 | $ 6,679 | $ 8,176 | $ 12,718 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other Comprehensive Income [Abstract] | ||||
Unrealized gains on available-for-sale securities, taxes | $ 1,919 | $ (1,904) | $ 47 | $ (3,532) |
Unamortized holding losses on held to maturity securities transferred from available for sale, taxes | (68) | 0 | (125) | 0 |
Other Comprehensive Income Loss Reclassification Adjustment For Sale Or Writedown Of Securities Included In Net Income Tax | $ 0 | $ 212 | $ 90 | $ 286 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 8,195 | $ 7,636 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 408 | 451 |
Depreciation, amortization and accretion, net | 1,820 | 2,035 |
Stock-based compensation expense | 175 | 221 |
Gains on investment securities, net | (230) | (734) |
Gain on sales of other real property owned, net | (18) | (38) |
Loss on write down of fixed assets | 78 | 19 |
Gains on sale of loans held for sale, net | (397) | (272) |
Decrease in accrued interest receivable | 784 | 626 |
Increase in accrued interest payable | 17 | 15 |
Origination of loans held for sale | (29,612) | (19,760) |
Proceeds from sale of loans held for sale | 29,391 | 19,617 |
Increase in other assets | (2,768) | (329) |
Decrease in other liabilities | (761) | (1,271) |
Net cash provided by operating activities | 7,082 | 8,216 |
Cash flows from investing activities: | ||
Proceeds from sales of securities available-for-sale | 9,453 | 63,142 |
Proceeds from maturities of securities held-to-maturity | 10,000 | 0 |
Proceeds from maturities of securities available-for-sale | 33,854 | 40,270 |
Purchases of securities available-for-sale | (88,002) | (45,427) |
Net (increase) decrease in loans | 3,672 | (39,293) |
Purchases of premises and equipment | (860) | (496) |
Proceeds from sales of other real property owned | 80 | 451 |
Net cash provided by (used in) investing activities | (31,803) | 18,647 |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | (5,878) | 3,281 |
Decrease in repurchase agreements | (4,401) | (24,028) |
Proceeds from FHLB advances | 5,000 | 0 |
Repayment of FHLB advances | 0 | (10,000) |
Repayment of other borrowings | 2,000 | 1,000 |
Proceeds from other borrowings | 2,000 | 1,000 |
Proceeds from issuance of common stock | 28,099 | 381 |
Conversion of preferred stock | 0 | (5) |
Purchase of treasury stock | (962) | (902) |
Dividends paid on preferred stock | (1,001) | (2,024) |
Dividends paid on common stock | (1,532) | (1,133) |
Net Cash Provided by (Used in) Financing Activities, Continuing Operations | 19,325 | (34,430) |
Decrease in cash and cash equivalents | (5,396) | (7,567) |
Cash and cash equivalents at beginning of period | 51,730 | 65,102 |
Cash and cash equivalents at end of period | 46,334 | 57,535 |
Cash paid during the period for: | ||
Interest | 1,638 | 1,588 |
Income taxes | 4,911 | 4,685 |
Supplemental disclosures of noncash investing and financing activities | ||
Loans Transferred to Other Real Estate Owned | 90 | 242 |
Dividends reinvested in common stock | 597 | 576 |
Net tax benefit related to option and deferred compensation plans | $ 85 | $ 101 |
Basis of Accounting and Consoli
Basis of Accounting and Consolidation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of accounting and consolidation | Basis of Accounting and Consolidation The unaudited condensed consolidated financial statements include the accounts of First Mid-Illinois Bancshares, Inc. (“Company”) and its wholly-owned subsidiaries: First Mid-Illinois Bank & Trust, N.A. (“First Mid Bank”), Mid-Illinois Data Services, Inc. (“MIDS”) and The Checkley Agency, Inc. doing business as First Mid Insurance Group (“First Mid Insurance”). All significant intercompany balances and transactions have been eliminated in consolidation. The financial information reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the results of the interim periods ended June 30, 2015 and 2014 , and all such adjustments are of a normal recurring nature. Certain amounts in the prior year’s consolidated financial statements have been reclassified to conform to the June 30, 2015 presentation and there was no impact on net income or stockholders’ equity. The results of the interim period ended June 30, 2015 are not necessarily indicative of the results expected for the year ending December 31, 2015 . The Company operates as a one-segment entity for financial reporting purposes. The 2014 year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all of the information required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and related footnote disclosures although the Company believes that the disclosures made are adequate to make the information not misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2014 Annual Report on Form 10-K. Website The Company maintains a website at www.firstmid.com . All periodic and current reports of the Company and amendments to these reports filed with the Securities and Exchange Commission (“SEC”) can be accessed, free of charge, through this website as soon as reasonably practicable after these materials are filed with the SEC. Branch Purchase and Assumption Agreement On January 30, 2015, First Mid Bank, a wholly-owned subsidiary of the Company, entered into a Purchase and Assumption Agreement (the “Purchase Agreement”) with Old National Bank, a national banking association having its principal office in Evansville, Indiana, pursuant to which First Mid Bank will purchase certain assets and assume certain liabilities of 12 branch offices of Old National Bank in Southern Illinois (the “Branches”). Pursuant to the terms of the Purchase Agreement, First Mid Bank has agreed to assume certain deposit liabilities and to acquire certain loans, as well as cash, real property, furniture, and other fixed operating assets associated with the Branches. The book value of loan and deposit balances to be assumed were approximately $160 million and $502 million , respectively, as of December 31, 2014. First Mid Bank has also agreed to assume certain leases relating to the Branches. The completion of the Purchase is subject to regulatory approval required by the Office of the Comptroller of the Currency and normal customary closing conditions, including First Mid Bank, in conjunction with the Company, obtaining financing in connection with the acquisition. Subject to the satisfaction of such conditions, First Mid Bank and Old National Bank expect to close the acquisition in the third quarter of 2015. Capital Raise On June 18, 2015, the Company entered into a securities purchase agreement with a limited number of institutional investors to sell, and accepted from certain other accredited investors, including certain directors of the Company, subscriptions for, an aggregate total of 1,392,859 newly issued shares of the Company's common stock at a purchase price of $21.00 per share, for an aggregate gross purchase price of approximately $29,250,039 (the "Offering"). The Offering closed on June 19, 2015. The Company intends to use the net proceeds of the Offering to provide capital support for the pending purchase of the Branches and for general corporate purposes. Rights Agreement On January 21, 2015, the Company entered into an Amendment No. 1 to the Rights Agreement (the "Rights Agreement"), dated as of September 22, 2009, by and between the Company and Computershare Trust Company, N.A., as rights agent. This amendment accelerated the expiration of the Company's common stock purchase rights (the “Rights”) from 5:00 p.m., Mattoon, Illinois time, on September 22, 2019, to 5:00 p.m., Mattoon, Illinois time, on January 21, 2015, and had the effect of terminating the Rights Agreement on that date. At the time of the termination of the Rights Agreement, all of the Rights distributed to holders of the Company's common stock pursuant to the Rights Agreement expired. NASDAQ Listing On May 12, 2014, the Company's common stock began trading on The NASDAQ Stock Market under the ticker "FMBH." Prior to the listing of the Company's common stock on NASDAQ, the common stock was traded on the OTC Bulletin Board. Stock Plans At the Annual Meeting of Stockholders held May 23, 2007, the stockholders approved the First Mid-Illinois Bancshares, Inc. 2007 Stock Incentive Plan (“SI Plan”). The SI Plan was implemented to succeed the Company’s 1997 Stock Incentive Plan, which had a ten-year term that expired October 21, 2007. The SI Plan is intended to provide a means whereby directors, employees, consultants and advisors of the Company and its subsidiaries may sustain a sense of proprietorship and personal involvement in the continued development and financial success of the Company and its subsidiaries, thereby advancing the interests of the Company and its stockholders. Accordingly, directors and selected employees, consultants and advisors may be provided the opportunity to acquire shares of common stock of the Company on the terms and conditions established in the SI Plan. On September 27, 2011, the Board of Directors passed a resolution relating to the SI Plan whereby they authorized and approved the Executive Long-Term Incentive Plan (“LTIP”). The LTIP was implemented to provide a methodology for granting Stock Awards and Stock Unit Awards to select senior executives of the Company or any Subsidiary. A maximum of 300,000 shares of common stock may be issued under the SI Plan. As of June 30, 2015 , the Company had awarded 59,500 shares as stock options under the SI plan. There were no stock options awarded in 2015 or 2014 . The Company awarded 16,604 shares as Stock Unit Awards and 14,770 as 50% Stock Awards and 50% Stock Unit Awards during 2015 and 2014, respectively, under the SI plan. Convertible Preferred Stock Series B Convertible Preferred Stock. During 2009, the Company sold to certain accredited investors including directors, executive officers, and certain major customers and holders of the Company’s common stock, $24,635,000 , in the aggregate, of a newly authorized series of its preferred stock designated as Series B 9% Non-Cumulative Perpetual Convertible Preferred Stock (the “Series B Preferred Stock”). The Series B Preferred Stock had an issue price of $5,000 per share and no par value per share. The Series B Preferred Stock was issued in a private placement exempt from registration pursuant to Regulation D of the Securities Act of 1933, as amended. On September 23, 2014, the Board of Directors of the Company approved the mandatory conversion of all of the Company's issued and outstanding 4,926 shares of Series B Preferred Stock into shares of the Company’s common stock. On September 24, 2014, notices were sent to the shareholders of the Series B Preferred Stock regarding the mandatory conversion. On November 17, 2014, the Company completed the mandatory conversion. The conversion ratio for each share of the Preferred Stock was computed by dividing $5,000 (the issuance price per share of the Series B Preferred Stock) by $0.00 (then current conversion price). The conversion ratio, therefore, was 231.267 shares of the Company's common stock for each share of Series B Preferred Stock. This resulted in the issuance of approximately 1,139,195 shares of common stock in the aggregate. As a result of the conversion, dividends ceased to accrue on the Series B Preferred Stock and certificates for shares of Series B Preferred Stock only represent the right to receive the appropriate number of shares of common stock, together with net accrued but unpaid dividends on the Preferred Stock, and cash in lieu of fractional share interests. Series C Convertible Preferred Stock. On February 11, 2011, the Company accepted from certain accredited investors, including directors, executive officers, and certain major customers and holders of the Company’s common stock (collectively, the “Investors”), subscriptions for the purchase of $27,500,000 , in the aggregate, of a newly authorized series of preferred stock designated as Series C 8% Non-Cumulative Perpetual Convertible Preferred Stock (the “Series C Preferred Stock”). As of February 11, 2011, $11,010,000 of the Series C Preferred Stock had been issued and sold by the Company to certain Investors. On March 2, 2011, three investors subsequently completed the required bank regulatory process and an additional $2,750,000 of Series C Preferred Stock was issued and sold by the Company to these investors. On May 13, 2011, four additional investors received the required bank regulatory approval and an additional $5,490,000 of Series C Preferred Stock was issued and sold by the Company to these investors. On June 28, 2012, the final $8,250,000 of the Company’s Series C Preferred Stock was issued and sold by the Company to Investors following their receipt of the required bank regulatory approval, for a total of $27,500,000 of outstanding Series C Preferred Stock. All of the Series C Preferred Stock subscribed for by investors has been issued. The Series C Preferred Stock has an issue price of $5,000 per share and no par value per share. The Series C Preferred Stock was issued in a private placement exempt from registration pursuant to Regulation D of the Securities Act of 1933, as amended. The Series C Preferred Stock pays non-cumulative dividends semiannually in arrears, when, as and if authorized by the Board of Directors of the Company, at a rate of 8% per year. Holders of the Series C Preferred Stock will have no voting rights, except with respect to certain fundamental changes in the terms of the Series C Preferred Stock and certain other matters. In addition, if dividends on the Series C Preferred Stock are not paid in full for four dividend periods, whether consecutive or not, the holders of the Series C Preferred Stock, acting as a class with any other of the Company’s securities having similar voting rights, including the Company’s Series B Preferred Stock, will have the right to elect two directors to the Company’s Board of Directors. The terms of office of these directors will end when the Company has paid or set aside for payment full semi-annual dividends for four consecutive dividend periods. Each share of the Series C Preferred Stock may be converted at any time at the option of the holder into shares of the Company’s common stock. The number of shares of common stock into which each share of the Series C Preferred Stock is convertible is the $5,000 liquidation preference per share divided by the Conversion Price of $20.29 . The Conversion Price is subject to adjustment from time to time pursuant to the terms of the Series C Certificate of Designation. If at the time of conversion, there are any authorized, declared and unpaid dividends with respect to a converted share of Series C Preferred Stock, the holder will receive cash in lieu of the dividends, and a holder will receive cash in lieu of fractional shares of common stock following conversion. After May 13, 2016 the Company may, at its option but subject to the Company’s receipt of any required prior approvals from the Board of Governors of the Federal Reserve System or any other regulatory authority, redeem the Series C Preferred Stock. Any redemption will be in exchange for cash in the amount of $5,000 per share, plus any authorized, declared and unpaid dividends, without accumulation of any undeclared dividends. The Company also has the right at any time after May 13, 2016 to require the conversion of all (but not less than all) of the Series C Preferred Stock into shares of common stock if, on the date notice of mandatory conversion is given to holders, (a) the tangible book value per share of the Company’s common stock equals or exceeds 115% of the tangible book value per share of the Company’s common stock at December 31, 2010, and (b) the NASDAQ Bank Index (denoted by CBNK:IND) equals or exceeds 115% of the NASDAQ Bank Index at December 31, 2010. “Tangible book value per share of our common stock” at any date means the result of dividing the Company’s total common stockholders equity at that date, less the amount of goodwill and intangible assets, determined in accordance with U.S. generally accepted accounting principles, by the number of shares of common stock then outstanding, net of any shares held in the treasury. The tangible book value of the Company’s common stock at December 31, 2010 was $9.38 , and 115% of this amount is approximately $10.79 . The NASDAQ Bank Index value at December 31, 2010 was 1,847.35 and 115% of this amount is approximately 2,124.45 . The tangible book value of the Company’s common stock at June 30, 2015 was $17.00 and the NASDAQ Bank Index value at June 30, 2015 was 2,822.80 . Accumulated Other Comprehensive Income The components of accumulated other comprehensive income included in stockholders’ equity as of June 30, 2015 and December 31, 2014 are as follows (in thousands): Unrealized Gain (Loss) on Securities Securities with Other-Than-Temporary Impairment Losses Total June 30, 2015 Net unrealized gains on securities available-for-sale $ 601 $ — $ 601 Unamortized losses on held-to-maturity securities transferred from available-for-sale (1,007 ) — (1,007 ) Securities with other-than-temporary impairment losses — (1,060 ) (1,060 ) Tax benefit 158 414 572 Balance at June 30, 2015 $ (248 ) $ (646 ) $ (894 ) December 31, 2014 Net unrealized gains on securities available-for-sale $ 2,829 $ — $ 2,829 Unamortized losses on held-to-maturity securities transferred from available-for-sale (1,328 ) — (1,328 ) Securities with other-than-temporary impairment losses — (2,936 ) (2,936 ) Tax benefit (expense) (586 ) 1,146 560 Balance at December 31, 2014 $ 915 $ (1,790 ) $ (875 ) Amounts reclassified from accumulated other comprehensive income and the affected line items in the statements of income during the six months ended June 30, 2015 and 2014 , were as follows (in thousands): Amounts Reclassified from Other Comprehensive Income Affected Line Item in the Statements of Income 2015 2014 Unrealized gains on available-for-sale securities $ 230 734 Securities gains, net (Total reclassified amount before tax) (90 ) (286 ) Income taxes Total reclassifications out of accumulated other comprehensive income $ 140 $ 448 Net reclassified amount See “Note 3 – Investment Securities” for more detailed information regarding unrealized losses on available-for-sale securities. Adoption of New Accounting Guidance Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606): Revenue from Contracts with Customers ("ASU 2014-09"). In May 2014, FASB issued ASU 2014-09 which creates a new topic in the FASB Accounting Standards Codification (R) ("ASC"), Topic 606. In addition to superseding and replacing nearly all existing U.S. GAAP revenue recognition guidance, including industry-specific guidance, ASU 2014-09 establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, ASU 2014-09 adds a new Subtopic to the ASC, Other Assets and Deferred Costs: Contracts with Customers ("ASC 340-40"), to provide guidance on costs related to obtaining a contract with a customer and costs incurred in fulfilling a contract with a customer that are not in the scope of another ASC Topic. The new guidance does not apply to certain contracts within the scope of other ASC Topics, such as lease contracts, insurance contracts, financing arrangements, financial instruments, guarantee other than product or service warranties, and non-monetary exchanges between entities in the same line of business to facilitate sales to customers. The amendments are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. In July 2015, the FASB voted for a one year deferral of the effective date of ASU 2014-09. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. Accounting Standards Update 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures ("ASU 2014-11"). In June 2014, FASB issued ASU 2014-11 which changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements to secured borrowing accounting. ASU 2014-11 also requires enhanced disclosures about repurchase agreements and other similar transactions. The accounting changes in this update are effective for the first interim or annual period beginning after December 31, 2014. The disclosure for transactions accounted for as a sale is effective for the first interim or annual period beginning on or after December 15, 2014; the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods after December 15, 2014, and interim periods after March 15, 2015. Early application is not permitted. The adoption of this amendment did not have a material effect on the Company's financial statements. |
Consolidation | The unaudited condensed consolidated financial statements include the accounts of First Mid-Illinois Bancshares, Inc. (“Company”) and its wholly-owned subsidiaries: First Mid-Illinois Bank & Trust, N.A. (“First Mid Bank”), Mid-Illinois Data Services, Inc. (“MIDS”) and The Checkley Agency, Inc. doing business as First Mid Insurance Group (“First Mid Insurance”). All significant intercompany balances and transactions have been eliminated in consolidation. The financial information reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the results of the interim periods ended June 30, 2015 and 2014 , and all such adjustments are of a normal recurring nature. Certain amounts in the prior year’s consolidated financial statements have been reclassified to conform to the June 30, 2015 presentation and there was no impact on net income or stockholders’ equity. The results of the interim period ended June 30, 2015 are not necessarily indicative of the results expected for the year ending December 31, 2015 . The Company operates as a one-segment entity for financial reporting purposes. The 2014 year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. The unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all of the information required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and related footnote disclosures although the Company believes that the disclosures made are adequate to make the information not misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2014 Annual Report on Form 10-K. |
Adoption of new accounting guidance | Adoption of New Accounting Guidance Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606): Revenue from Contracts with Customers ("ASU 2014-09"). In May 2014, FASB issued ASU 2014-09 which creates a new topic in the FASB Accounting Standards Codification (R) ("ASC"), Topic 606. In addition to superseding and replacing nearly all existing U.S. GAAP revenue recognition guidance, including industry-specific guidance, ASU 2014-09 establishes a new control-based revenue recognition model, changes the basis for deciding when revenue is recognized over time or at a point in time, provides new and more detailed guidance on specific topics and expands and improves disclosures about revenue. In addition, ASU 2014-09 adds a new Subtopic to the ASC, Other Assets and Deferred Costs: Contracts with Customers ("ASC 340-40"), to provide guidance on costs related to obtaining a contract with a customer and costs incurred in fulfilling a contract with a customer that are not in the scope of another ASC Topic. The new guidance does not apply to certain contracts within the scope of other ASC Topics, such as lease contracts, insurance contracts, financing arrangements, financial instruments, guarantee other than product or service warranties, and non-monetary exchanges between entities in the same line of business to facilitate sales to customers. The amendments are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. In July 2015, the FASB voted for a one year deferral of the effective date of ASU 2014-09. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. Accounting Standards Update 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures ("ASU 2014-11"). In June 2014, FASB issued ASU 2014-11 which changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements to secured borrowing accounting. ASU 2014-11 also requires enhanced disclosures about repurchase agreements and other similar transactions. The accounting changes in this update are effective for the first interim or annual period beginning after December 31, 2014. The disclosure for transactions accounted for as a sale is effective for the first interim or annual period beginning on or after December 15, 2014; the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods after December 15, 2014, and interim periods after March 15, 2015. Early application is not permitted. The adoption of this amendment did not have a material effect on the Company's financial statements. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Basic net income per common share available to common stockholders is calculated as net income less preferred stock dividends divided by the weighted average number of common shares outstanding. Diluted net income per common share available to common stockholders is computed using the weighted average number of common shares outstanding, increased by the assumed conversion of the Company’s convertible preferred stock and the Company’s stock options, unless anti-dilutive. The components of basic and diluted net income per common share available to common stockholders for the three and six -month period ended June 30, 2015 and 2014 were as follows: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Basic Net Income per Common Share Available to Common Stockholders: Net income $ 4,156,000 $ 4,029,000 $ 8,195,000 $ 7,636,000 Preferred stock dividends (550,000 ) (1,104,000 ) (1,100,000 ) (2,208,000 ) Net income available to common stockholders $ 3,606,000 $ 2,925,000 $ 7,095,000 $ 5,428,000 Weighted average common shares outstanding 7,198,980 5,880,919 7,112,309 5,882,123 Basic earnings per common share $ 0.50 $ 0.49 $ 1.00 $ 0.92 Diluted Net Income per Common Share Available to Common Stockholders: Net income available to common stockholders $ 3,606,000 $ 2,925,000 $ 7,095,000 $ 5,428,000 Effect of assumed preferred stock conversion 550,000 1,104,000 1,100,000 2,208,000 Net income applicable to diluted earnings per share $ 4,156,000 $ 4,029,000 $ 8,195,000 $ 7,636,000 Weighted average common shares outstanding 7,198,980 5,880,919 7,112,309 5,882,123 Dilutive potential common shares: Restricted stock awarded 9,445 9,501 9,445 9,051 Assumed conversion of preferred stock 1,355,348 2,494,569 1,355,348 2,494,679 Dilutive potential common shares 1,364,793 2,504,070 1,364,793 2,503,730 Diluted weighted average common shares outstanding 8,563,773 8,384,989 8,477,102 8,385,853 Diluted earnings per common share $ 0.49 $ 0.48 $ 0.97 $ 0.91 The following shares were not considered in computing diluted earnings per share for the three and six -month periods ended June 30, 2015 and 2014 because they were anti-dilutive: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Stock options to purchase shares of common stock 45,500 128,750 45,500 128,750 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The amortized cost, gross unrealized gains and losses and estimated fair values for available-for-sale and held-to-maturity securities by major security type at June 30, 2015 and December 31, 2014 were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value June 30, 2015 Available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations & agencies $ 122,307 $ 167 $ (740 ) $ 121,734 Obligations of states and political subdivisions 83,004 1,840 (550 ) 84,294 Mortgage-backed securities: GSE residential 209,835 1,700 (1,843 ) 209,692 Trust preferred securities 3,201 — (1,060 ) 2,141 Other securities 4,035 31 (4 ) 4,062 Total available-for-sale $ 422,382 $ 3,738 $ (4,197 ) $ 421,923 Held-to-maturity: U.S. Treasury securities and obligations of U.S. government corporations & agencies $ 43,973 $ 532 $ — $ 44,505 December 31, 2014 Available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations & agencies $ 101,224 $ 91 $ (1,358 ) $ 99,957 Obligations of states and political subdivisions 75,589 2,608 (113 ) 78,084 Mortgage-backed securities: GSE residential 193,814 2,548 (961 ) 195,401 Trust preferred securities 3,300 — (2,936 ) 364 Other securities 4,036 26 (12 ) 4,050 Total available-for-sale $ 377,963 $ 5,273 $ (5,380 ) $ 377,856 Held-to-maturity: U.S. Treasury securities and obligations of U.S. government corporations & agencies $ 53,650 $ 299 $ (12 ) $ 53,937 During the third quarter of 2014, management evaluated its available-for-sale portfolio and transferred obligations of U.S. government corporations & agencies securities with a fair value of $53.6 million from available-for-sale to held-to-maturity to reduce price volatility. Management determined it has both the intent and ability to hold these securities to maturity. Transfers of investment securities into the held-to-maturity category from available-for-sale are made at fair value on the date of transfer. There were no gains or losses recognized as a result of this transfer. The related $1.4 million of unrealized holding loss that was included in the transfer is retained in the carrying value of the held-to-maturity securities and in other comprehensive income net of deferred taxes. These amounts are being amortized into net interest income over the remaining life of the related securities as a yield adjustment, resulting in no impact on future net income. Trust preferred securities represent one trust preferred pooled security issued by First Tennessee Financial (“FTN”). The unrealized loss of this security, which has a remaining maturity of twenty-two years , is primarily due to its long-term nature, a lack of demand or inactive market for the security, and concerns regarding the underlying financial institutions that have issued the trust preferred security. See the heading “Trust Preferred Securities” for further information regarding this security. Realized gains and losses resulting from sales of securities were as follows during the six months ended June 30, 2015 and 2014 (in thousands): June 30, June 30, Gross gains $ 230 $ 1,435 Gross losses — (701 ) The following table indicates the expected maturities of investment securities classified as available-for-sale presented at fair value, and held-to-maturity presented at amortized cost, at June 30, 2015 and the weighted average yield for each range of maturities (dollars in thousands): One year or less After 1 through 5 years After 5 through 10 years After ten years Total Available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 80,168 $ 41,566 $ — $ — $ 121,734 Obligations of state and political subdivisions 4,928 41,476 36,950 940 84,294 Mortgage-backed securities: GSE residential 1,026 110,463 98,203 — 209,692 Trust preferred securities — — — 2,141 2,141 Other securities — 3,998 — 64 4,062 Total available-for-sale investments $ 86,122 $ 197,503 $ 135,153 $ 3,145 $ 421,923 Weighted average yield 1.68 % 2.36 % 2.69 % 1.65 % 2.32 % Full tax-equivalent yield 1.84 % 2.85 % 3.30 % 2.18 % 2.78 % Held to Maturity: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 24,543 $ 9,714 $ 9,716 $ — $ 43,973 Weighted average yield 2.30 % 2.10 % 2.33 % — % 2.31 % Full tax-equivalent yield 2.30 % 2.10 % 2.33 % — % 2.31 % The weighted average yields are calculated on the basis of the amortized cost and effective yields weighted for the scheduled maturity of each security. Tax-equivalent yields have been calculated using a 35% tax rate. With the exception of obligations of the U.S. Treasury and other U.S. government agencies and corporations, there were no investment securities of any single issuer, the book value of which exceeded 10% of stockholders' equity at June 30, 2015 . Investment securities carried at approximately $295 million and $330 million at June 30, 2015 and December 31, 2014 , respectively, were pledged to secure public deposits and repurchase agreements and for other purposes as permitted or required by law. The following table presents the aging of gross unrealized losses and fair value by investment category as of June 30, 2015 and December 31, 2014 (in thousands): Less than 12 months 12 months or more Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2015 Available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 31,099 $ (150 ) $ 53,504 $ (590 ) $ 84,603 $ (740 ) Obligations of states and political subdivisions 25,006 (461 ) 1,153 (89 ) 26,159 (550 ) Mortgage-backed securities: GSE residential 115,116 (1,145 ) 21,679 (698 ) 136,795 (1,843 ) Trust preferred securities — — 2,141 (1,060 ) 2,141 (1,060 ) Other securities 1,996 (4 ) — — 1,996 (4 ) Total $ 173,217 $ (1,760 ) $ 78,477 $ (2,437 ) $ 251,694 $ (4,197 ) Held-to-maturity: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ — $ — $ — $ — $ — $ — December 31, 2014 Available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 7,289 $ (46 ) $ 75,030 $ (1,312 ) $ 82,319 $ (1,358 ) Obligations of states and political subdivisions 3,586 (19 ) 4,416 (94 ) 8,002 (113 ) Mortgage-backed securities: GSE residential 19,565 (159 ) 37,224 (802 ) 56,789 (961 ) Trust preferred securities — — 364 (2,936 ) 364 (2,936 ) Other securities — — 1,988 (12 ) 1,988 (12 ) Total $ 30,440 $ (224 ) $ 119,022 $ (5,156 ) $ 149,462 $ (5,380 ) Held-to-maturity: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 4,853 $ (12 ) $ — $ — $ 4,853 $ (12 ) U.S. Treasury Securities and Obligations of U.S. Government Corporations and Agencies. At June 30, 2015 , there were eleven available-for sale U.S. Treasury securities and obligations of U.S. government corporations and agencies with a fair value of $53,504,000 and unrealized losses of $590,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2014 there were sixteen available-for-sale U.S. Treasury securities and obligations of U.S. government corporations and agencies with a fair value of $75,030,000 and unrealized losses of $1,312,000 in a continuous unrealized loss position for twelve months or more. At June 30, 2015 and December 31, 2014 there were no held-to-maturity U.S. Treasury securities and obligations of U.S. government corporations and agencies in a continuous unrealized loss position for twelve months or more. Obligations of states and political subdivisions. At June 30, 2015 there were two obligations of states and political subdivisions with a fair value of $1,153,000 and unrealized losses of $89,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2014 , there were ten obligations of states and political subdivisions with a fair value of $4,416,000 and unrealized losses of $94,000 in a continuous unrealized loss position for twelve months or more. Mortgage-backed Securities: GSE Residential. At June 30, 2015 there were seven mortgage-backed securities with a fair value of $21,679,000 and unrealized losses of $698,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2014 , there were eleven mortgage-backed securities with a fair value of $37,224,000 and unrealized losses of $802,000 in a continuous unrealized loss position for twelve months or more. Trust Preferred Securities. At June 30, 2015 , there was one trust preferred security with a fair value of $2,141,000 and unrealized losses of $1,060,000 in a continuous unrealized loss position for twelve months or more. At December 31, 2014 , there was one trust preferred security with a fair value of $364,000 and unrealized losses of $2,936,000 in a continuous unrealized loss position for twelve months or more. The unrealized loss was primarily due to the long-term nature of the trust preferred security, a lack of demand or inactive market for the security, the impending change to the regulatory treatment of these securities, and concerns regarding the underlying financial institutions that have issued the trust preferred securities. The Company recorded no other-than-temporary impairment (OTTI) for these securities during 2015 or 2014 . Because it is not more-likely-than-not that the Company will be required to sell the remaining security before recovery of its new, lower amortized cost basis, which may be maturity, the Company does not consider the remainder of the investment to be other-than-temporarily impaired at June 30, 2015 . However, future downgrades or additional deferrals and defaults in this security, could result in additional OTTI and consequently, have a material impact on future earnings. Following are the details for the currently impaired trust preferred security (in thousands): Book Value Market Value Unrealized Gains (Losses) Other-than- temporary Impairment Recorded To-date PreTSL XXVIII $ 3,201 $ 2,141 $ (1,060 ) $ (1,111 ) Other secu rities. At June 30, 2015 and December 31, 2014 , there were no corporate bonds in a continuous unrealized loss position for twelve months or more. The Company does not believe any other individual unrealized loss as of June 30, 2015 represents OTTI. However, given the continued disruption in the financial markets, the Company may be required to recognize OTTI losses in future periods with respect to its available for sale investment securities portfolio. The amount and timing of any additional OTTI will depend on the decline in the underlying cash flows of the securities. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in the period the other-than-temporary impairment is identified. Other-than-temporary Impairment. Upon acquisition of a security, the Company determines whether it is within the scope of the accounting guidance for investments in debt and equity securities or whether it must be evaluated for impairment under the accounting guidance for beneficial interests in securitized financial assets. The Company conducts periodic reviews to evaluate its investment securities to determine whether OTTI has occurred. While all securities are considered, the securities primarily impacted by OTTI evaluation are pooled trust preferred securities. For the pooled trust preferred security currently in the investment portfolio, an extensive review is conducted to determine if any additional OTTI has occurred. The Company utilizes an independent third-party to perform the OTTI evaluation. The Company's management reviews the assumption inputs and methodology with the third-party to obtain an understanding of them and determine if they are appropriate for the evaluation. Economic models are used to project future cash flows for the security based on current assumptions for discount rate, prepayments, default and deferral rates and recoveries. These assumptions are determined based on the structure of the issuance, the specific collateral underlying the security, historical performance of trust preferred securities and general state of the economy. The OTTI test compares the present value of the cash flows from quarter to quarter to determine if there has been an adverse change which could indicate additional OTTI. The discount rate assumption used in the cash flow model is equal to the current yield used to accrete the beneficial interest. The Company’s current trust preferred security investment has a floating rate coupon of 3-month LIBOR plus 90 basis points . Since the estimate of 3-month LIBOR is based on the forward curve on the measurement date, and is therefore variable, the discount assumption for this security is a range of projected coupons over the expected life of the security. The Company considers the likelihood that issuers will prepay their securities which changes the amount of expected cash flows. Factors such as the coupon rates of collateral, economic conditions and regulatory changes, such as the Dodd-Frank Act and Basel III, are considered. The trust preferred security includes collateral issued by financial institutions and insurance companies. To identify bank issuers with a high risk of near term default or deferral, a credit model developed by the third-party is utilized that scores each bank issuer based on 29 different ratios covering capital adequacy, asset quality, earnings, liquidity, the Texas Ratio, and sensitivity to interest rates. To account for longer term bank default risk not captured by the credit model, it is assumed that banks will default at a rate of 2% annually for the first two years of the cash flow projection, and 36 basis points in each year thereafter. To project defaults for insurance issuers, each issuer’s credit rating is mapped to its idealized default rate, which is AM Best’s estimate of the historical default rate for insurance companies with that rating. Lastly, it is assumed that trust preferred securities issued by banks that have already failed will have no recoveries, and that banks projected to default will have recoveries of 10% . Additionally, the 10% recovery assumption, incorporates the potential for cures by banks that are currently in deferral. If the Company determines that a given pooled trust preferred security position will be subject to a write-down or loss, the Company records the expected credit loss as a charge to earnings. Credit Losses Recognized on Investments. As described above, the Company’s investment in trust preferred security has experienced fair value deterioration due to credit losses but is not otherwise other-than-temporarily impaired. The following table provides information about the trust preferred security for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the six months ended June 30, 2015 and 2014 (in thousands). Accumulated Credit Losses June 30, 2015 June 30, 2014 Credit losses on trust preferred securities held Beginning of period $ 1,111 $ 1,111 Additions related to OTTI losses not previously recognized — — Reductions due to sales / (recoveries) — — Reductions due to change in intent or likelihood of sale — — Additions related to increases in previously recognized OTTI losses — — Reductions due to increases in expected cash flows — — End of period $ 1,111 $ 1,111 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans are stated at the principal amount outstanding net of unearned discounts, unearned income and allowance for loan losses. Unearned income includes deferred loan origination fees reduced by loan origination costs and is amortized to interest income over the life of the related loan using methods that approximated the effective interest rate method. Interest on substantially all loans is credited to income based on the principal amount outstanding. A summary of loans at June 30, 2015 and December 31, 2014 follows (in thousands): June 30, December 31, Construction and land development $ 27,420 $ 21,627 Agricultural real estate 112,270 110,158 1-4 Family residential properties 170,697 179,886 Multifamily residential properties 52,422 53,129 Commercial real estate 372,213 380,173 Loans secured by real estate 735,022 744,973 Agricultural loans 59,641 68,225 Commercial and industrial loans 238,981 223,633 Consumer loans 14,560 15,118 All other loans 8,453 8,736 Gross loans 1,056,657 1,060,685 Less: Net deferred loan fees, premiums and discounts 130 237 Allowance for loan losses 13,931 13,682 Net loans $ 1,042,596 $ 1,046,766 Loans expected to be sold are classified as held for sale in the consolidated financial statements and are recorded at the lower of aggregate cost or market value, taking into consideration future commitments to sell the loans. These loans are primarily for 1-4 family residential properties. The balance of loans held for sale, excluded from the balances above, were $2,576,000 and $1,958,000 at June 30, 2015 and December 31, 2014 , respectively. Most of the Company’s business activities are with customers located within central Illinois. At June 30, 2015 , the Company’s loan portfolio included $172.0 million of loans to borrowers whose businesses are directly related to agriculture. Of this amount, $144.7 million was concentrated in other grain farming. Total loans to borrowers whose businesses are directly related to agriculture decreased $6.5 million from $178.5 million at December 31, 2014 while loans concentrated in other grain farming decreased $10.4 million from $155.1 million at December 31, 2014 due to seasonal paydowns based upon timing of cash flow requirements. While the Company adheres to sound underwriting practices, including collateralization of loans, any extended period of low commodity prices, drought conditions, significantly reduced yields on crops and/or reduced levels of government assistance to the agricultural industry could result in an increase in the level of problem agriculture loans and potentially result in loan losses within the agricultural portfolio. In addition, the Company has $55.8 million of loans to motels and hotels. The performance of these loans is dependent on borrower specific issues as well as the general level of business and personal travel within the region. While the Company adheres to sound underwriting standards, a prolonged period of reduced business or personal travel could result in an increase in nonperforming loans to this business segment and potentially in loan losses. The Company also has $105.2 million of loans to lessors of non-residential buildings and $62.5 million of loans to lessors of residential buildings and dwellings. The structure of the Company’s loan approval process is based on progressively larger lending authorities granted to individual loan officers, loan committees, and ultimately the Board of Directors. Outstanding balances to one borrower or affiliated borrowers are limited by federal regulation; however, limits well below the regulatory thresholds are generally observed. The vast majority of the Company’s loans are to businesses located in the geographic market areas served by the Company’s branch bank system. Additionally, a significant portion of the collateral securing the loans in the portfolio is located within the Company’s primary geographic footprint. In general, the Company adheres to loan underwriting standards consistent with industry guidelines for all loan segments. The Company’s lending can be summarized into the following primary areas: Commercial Real Estate Loans. Commercial real estate loans are generally comprised of loans to small business entities to purchase or expand structures in which the business operations are housed, loans to owners of real estate who lease space to non-related commercial entities, loans for construction and land development, loans to hotel operators, and loans to owners of multi-family residential structures, such as apartment buildings. Commercial real estate loans are underwritten based on historical and projected cash flows of the borrower and secondarily on the underlying real estate pledged as collateral on the debt. For the various types of commercial real estate loans, minimum criteria have been established within the Company’s loan policy regarding debt service coverage while maximum limits on loan-to-value and amortization periods have been defined. Maximum loan-to-value ratios range from 65% to 80% depending upon the type of real estate collateral, while the desired minimum debt coverage ratio is 1.20x . Amortization periods for commercial real estate loans are generally limited to twenty years . The Company’s commercial real estate portfolio is well below the thresholds that would designate a concentration in commercial real estate lending, as established by the federal banking regulators. Commercial and Industrial Loans. Commercial and industrial loans are primarily comprised of working capital loans used to purchase inventory and fund accounts receivable that are secured by business assets other than real estate. These loans are generally written for one year or less. Also, equipment financing is provided to businesses with these loans generally limited to 80% of the value of the collateral and amortization periods limited to seven years . Commercial loans are often accompanied by a personal guaranty of the principal owners of a business. Like commercial real estate loans, the underlying cash flow of the business is the primary consideration in the underwriting process. The financial condition of commercial borrowers is monitored at least annually with the type of financial information required determined by the size of the relationship. Measures employed by the Company for businesses with higher risk profiles include the use of government-assisted lending programs through the Small Business Administration and U.S. Department of Agriculture. Agricultural and Agricultural Real Estate Loans. Agricultural loans are generally comprised of seasonal operating lines to cash grain farmers to plant and harvest corn and soybeans and term loans to fund the purchase of equipment. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Operating lines are typically written for one year and secured by the crop. Loan-to-value ratios on loans secured by farmland generally do not exceed 65% and have amortization periods limited to twenty five years . Federal government-assistance lending programs through the Farm Service Agency are used to mitigate the level of credit risk when deemed appropriate. Residential Real Estate Loans. Residential real estate loans generally include loans for the purchase or refinance of residential real estate properties consisting of one-to-four units and home equity loans and lines of credit. The Company sells the vast majority of its long-term fixed rate residential real estate loans to secondary market investors. The Company also releases the servicing of these loans upon sale. The Company retains all residential real estate loans with balloon payment features. Balloon periods are limited to five years . Residential real estate loans are typically underwritten to conform to industry standards including criteria for maximum debt-to-income and loan-to-value ratios as well as minimum credit scores. Loans secured by first liens on residential real estate held in the portfolio typically do not exceed 80% of the value of the collateral and have amortization periods of twenty five years or less. The Company does not originate subprime mortgage loans. Consumer Loans. Consumer loans are primarily comprised of loans to individuals for personal and household purposes such as the purchase of an automobile or other living expenses. Minimum underwriting criteria have been established that consider credit score, debt-to-income ratio, employment history, and collateral coverage. Typically, consumer loans are set up on monthly payments with amortization periods based on the type and age of the collateral. Other Loans. Other loans consist primarily of loans to municipalities to support community projects such as infrastructure improvements or equipment purchases. Underwriting guidelines for these loans are consistent with those established for commercial loans with the additional repayment source of the taxing authority of the municipality. Allowance for Loan Losses The allowance for loan losses represents the Company’s best estimate of the reserve necessary to adequately account for probable losses existing in the current portfolio. The provision for loan losses is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate allowance for loan losses. In determining the adequacy of the allowance for loan losses, and therefore the provision to be charged to current earnings, the Company relies predominantly on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty. Once identified, the magnitude of exposure to individual borrowers is quantified in the form of specific allocations of the allowance for loan losses. The Company considers collateral values and guarantees in the determination of such specific allocations. Additional factors considered by the Company in evaluating the overall adequacy of the allowance include historical net loan losses, the level and composition of nonaccrual, past due and troubled debt restructurings, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates. The Company estimates the appropriate level of allowance for loan losses by separately evaluating large impaired loans, large adversely classified loans and nonimpaired loans. Impaired loans The Company individually evaluates certain loans for impairment. In general, these loans have been internally identified via the Company’s loan grading system as credits requiring management’s attention due to underlying problems in the borrower’s business or collateral concerns. This evaluation considers expected future cash flows, the value of collateral and also other factors that may impact the borrower’s ability to make payments when due. For loans greater than $250,000 in the commercial, commercial real estate, agricultural, agricultural real estate segments, impairment is individually measured each quarter using one of three alternatives: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price, if available; or (3) the fair value of the collateral less costs to sell for collateral dependent loans and loans for which foreclosure is deemed to be probable. A specific allowance is assigned when expected cash flows or collateral do not justify the carrying amount of the loan. The carrying value of the loan reflects reductions from prior charge-offs. Adversely classified loans A detailed analysis is also performed on each adversely classified (substandard or doubtful rated) borrower with an aggregate, outstanding balance of $250,000 or more. This analysis includes commercial, commercial real estate, agricultural, and agricultural real estate borrowers who are not currently identified as impaired but pose sufficient risk to warrant in-depth review. Estimated collateral shortfalls are then calculated with allocations for each loan segment based on the five-year historical average of collateral shortfalls adjusted for environmental factors including changes in economic conditions, changes in credit policies or underwriting standards, and changes in the level of credit risk associated with specific industries and markets. Because the economic and business climate in any given industry or market, and its impact on any given borrower, can change rapidly, the risk profile of the loan portfolio is periodically assessed and adjusted when appropriate. Consumer loans are evaluated for adverse classification based primarily on the Uniform Retail Credit Classification and Account Management Policy established by the federal banking regulators. Classification standards are generally based on delinquency status, collateral coverage, bankruptcy and the presence of fraud. Non-classified and Watch loans For loans, in all segments of the portfolio, that are considered to possess levels of risk commensurate with a pass rating, management establishes base loss estimations which are derived from historical loss experience. Use of a five-year historical loss period eliminates the effect of any significant losses that can be attributed to a single event or borrower during a given reporting period. The base loss estimations for each loan segment are adjusted after consideration of several environmental factors influencing the level of credit risk in the portfolio. In addition, loans rated as watch are further segregated in the commercial / commercial real estate and agricultural / agricultural real estate segments. These loans possess potential weaknesses that, if unchecked, may result in deterioration to the point of becoming a problem asset. Due to the elevated risk inherent in these loans, an allocation of twice the adjusted base loss estimation of the applicable loan segment is determined appropriate. Due to weakened economic conditions during recent years, the Company established allocations for each of the loan segments at levels above the base loss estimations. Some of the economic factors included the potential for reduced cash flow for commercial operating loans from reduction in sales or increased operating costs, decreased occupancy rates for commercial buildings, reduced levels of home sales for commercial land developments, the uncertainty regarding grain prices and increased operating costs for farmers, and increased levels of unemployment and bankruptcy impacting consumer’s ability to pay. Each of these economic uncertainties was taken into consideration in developing the level of the reserve. The Company has not materially changed any aspect of its overall approach in the determination of the allowance for loan losses. However, on an on-going basis the Company continues to refine the methods used in determining management’s best estimate of the allowance for loan losses. The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method for the three and six -months ended June 30, 2015 and 2014 and for the year ended December 31, 2014 (in thousands): Commercial/ Commercial Real Estate Agricultural/ Agricultural Real Estate Residential Real Estate Consumer Unallocated Total Three months ended June 30, 2015 Allowance for loan losses: Balance, beginning of period $ 11,459 $ 1,291 $ 753 $ 386 $ 217 $ 14,106 Provision charged to expense (123 ) 20 (7 ) 258 (5 ) 143 Losses charged off (62 ) — (15 ) (304 ) — (381 ) Recoveries 20 1 — 42 — 63 Balance, end of period $ 11,294 $ 1,312 $ 731 $ 382 $ 212 $ 13,931 Ending balance: Individually evaluated for impairment $ 537 $ — $ — $ — $ — $ 537 Collectively evaluated for impairment $ 10,757 $ 1,312 $ 731 $ 382 $ 212 $ 13,394 Three months ended June 30, 2014 Allowance for loan losses: Balance, beginning of period $ 10,581 $ 503 $ 760 $ 372 $ 1,387 $ 13,603 Provision charged to expense 200 21 6 27 (126 ) 128 Losses charged off (28 ) — (14 ) (60 ) — (102 ) Recoveries 18 — 5 29 — 52 Balance, end of period $ 10,771 $ 524 $ 757 $ 368 $ 1,261 $ 13,681 Ending balance: Individually evaluated for impairment $ 322 $ — $ — $ — $ — $ 322 Collectively evaluated for impairment $ 10,449 $ 524 $ 757 $ 368 $ 1,261 $ 13,359 Six months ended June 30, 2015 Allowance for loan losses: Balance, beginning of year $ 10,914 $ 1,360 $ 790 $ 386 $ 232 $ 13,682 Provision charged to expense 235 (49 ) (20 ) 262 (20 ) 408 Losses charged off (71 ) — (40 ) (360 ) — (471 ) Recoveries 216 1 1 94 — 312 Balance, end of period $ 11,294 $ 1,312 $ 731 $ 382 $ 212 $ 13,931 Ending balance: Individually evaluated for impairment $ 537 $ — $ — $ — $ — $ 537 Collectively evaluated for impairment $ 10,757 $ 1,312 $ 731 $ 382 $ 212 $ 13,394 Loans: Ending balance $ 696,596 $ 171,376 $ 175,680 $ 15,451 $ — $ 1,059,103 Ending balance: Individually evaluated for impairment $ 1,766 $ — $ — $ — $ — $ 1,766 Collectively evaluated for impairment $ 694,830 $ 171,376 $ 175,680 $ 15,451 $ — $ 1,057,337 Commercial/ Commercial Real Estate Agricultural/ Agricultural Real Estate Residential Real Estate Consumer Unallocated Total Six months ended June 30, 2014 Allowance for loan losses: Balance, beginning of year $ 10,646 $ 533 $ 771 $ 377 $ 922 $ 13,249 Provision charged to expense 75 (10 ) 11 36 339 451 Losses charged off (32 ) — (45 ) (105 ) — (182 ) Recoveries 82 1 20 60 — 163 Balance, end of period $ 10,771 $ 524 $ 757 $ 368 $ 1,261 $ 13,681 Ending balance: Individually evaluated for impairment $ 322 $ — $ — $ — $ — $ 322 Collectively evaluated for impairment $ 10,449 $ 524 $ 757 $ 368 $ 1,261 $ 13,359 Loans: Ending balance $ 657,352 $ 164,841 $ 185,754 $ 14,304 $ — $ 1,022,251 Ending balance: Individually evaluated for impairment $ 3,648 $ — $ — $ — $ — $ 3,648 Collectively evaluated for impairment $ 653,704 $ 164,841 $ 185,754 $ 14,304 $ — $ 1,018,603 Year ended December 31, 2014 Allowance for loan losses: Balance, beginning of year $ 10,646 $ 533 $ 771 $ 377 $ 922 $ 13,249 Provision charged to expense 192 825 135 167 (690 ) 629 Losses charged off (86 ) — (140 ) (311 ) — (537 ) Recoveries 162 2 24 153 — 341 Balance, end of year $ 10,914 $ 1,360 $ 790 $ 386 $ 232 $ 13,682 Ending balance: Individually evaluated for impairment $ 263 $ — $ — $ — $ — $ 263 Collectively evaluated for impairment $ 10,651 $ 1,360 $ 790 $ 386 $ 232 $ 13,419 Loans: Ending balance $ 684,552 $ 178,091 $ 184,661 $ 15,102 $ — $ 1,062,406 Ending balance: Individually evaluated for impairment $ 3,301 $ — $ — $ — $ — $ 3,301 Collectively evaluated for impairment $ 681,251 $ 178,091 $ 184,661 $ 15,102 $ — $ 1,059,105 Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except 1-4 family residential properties and consumer, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off 1-4 family residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 180 days past due, charge-off of unsecured open-end loans when the loan is 180 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. Credit Quality The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, collateral support, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with an outstanding balance greater than $100,000 and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a continuous basis. The Company uses the following definitions for risk ratings: Watch. Loans classified as watch have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current sound-worthiness and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans 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 factors, conditions and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered pass rated loans. The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of June 30, 2015 and December 31, 2014 (in thousands): Construction & Land Development Agricultural Real Estate 1-4 Family Residential Properties Multifamily Residential Properties 2015 2014 2015 2014 2015 2014 2015 2014 Pass $ 27,266 $ 20,842 $ 109,463 $ 107,976 $ 169,911 $ 177,764 $ 51,842 $ 52,793 Watch — — 1,767 1,036 925 1,187 249 — Substandard 154 785 1,072 1,181 2,516 2,970 331 336 Doubtful — — — — — — — — Total $ 27,420 $ 21,627 $ 112,302 $ 110,193 $ 173,352 $ 181,921 $ 52,422 $ 53,129 Commercial Real Estate (Nonfarm/Nonresidential) Agricultural Loans Commercial & Industrial Loans Consumer Loans 2015 2014 2015 2014 2015 2014 2015 2014 Pass $ 349,417 $ 357,873 $ 58,798 $ 67,619 $ 233,151 $ 218,193 $ 14,152 $ 15,105 Watch 21,456 18,817 228 — 4,790 4,647 — 9 Substandard 879 2,914 693 679 1,182 940 408 4 Doubtful — — — — — — — — Total $ 371,752 $ 379,604 $ 59,719 $ 68,298 $ 239,123 $ 223,780 $ 14,560 $ 15,118 All Other Loans Total Loans 2015 2014 2015 2014 Pass $ 8,453 $ 8,736 $ 1,022,453 $ 1,026,901 Watch — — 29,415 25,696 Substandard — — 7,235 9,809 Doubtful — — — — Total $ 8,453 $ 8,736 $ 1,059,103 $ 1,062,406 The following table presents the Company’s loan portfolio aging analysis at June 30, 2015 and December 31, 2014 (in thousands): 30-59 days Past Due 60-89 days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable Total Loans > 90 days & Accruing June 30, 2015 Construction and land development $ — $ — $ — $ — $ 27,420 $ 27,420 $ — Agricultural real estate 147 — — 147 112,155 112,302 — 1-4 Family residential properties 398 176 182 756 172,596 173,352 — Multifamily residential properties — — — — 52,422 52,422 — Commercial real estate 3 126 395 524 371,228 371,752 — Loans secured by real estate 548 302 577 1,427 735,821 737,248 — Agricultural loans — — — — 59,719 59,719 — Commercial and industrial loans 559 35 145 739 238,384 239,123 — Consumer loans 37 18 5 60 14,500 14,560 — All other loans — — — — 8,453 8,453 — Total loans $ 1,144 $ 355 $ 727 $ 2,226 $ 1,056,877 $ 1,059,103 $ — December 31, 2014 Construction and land development $ 297 $ 25 $ — $ 322 $ 21,305 $ 21,627 $ — Agricultural real estate — — — — 110,193 110,193 — 1-4 Family residential properties 201 224 385 810 181,111 181,921 — Multifamily residential properties — — — — 53,129 53,129 — Commercial real estate 60 32 945 1,037 378,567 379,604 — Loans secured by real estate 558 281 1,330 2,169 744,305 746,474 — Agricultural loans 16 20 — 36 68,262 68,298 — Commercial and industrial loans 228 10 98 336 223,444 223,780 — Consumer loans 331 10 5 346 14,772 15,118 — All other loans — — — — 8,736 8,736 — Total loans $ 1,133 $ 321 $ 1,433 $ 2,887 $ 1,059,519 $ 1,062,406 $ — Impaired Loans Within all loan portfolio segments, loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Impaired loans, excluding certain troubled debt restructured loans, are placed on nonaccrual status. Impaired loans include nonaccrual loans and loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being modified remain on nonaccrual status until, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. If the restructured loan is on accrual status prior to being modified, the loan is reviewed to determine if the modified loan should remain on accrual status. The Company’s policy is to discontinue the accrual of interest income on all loans for which principal or interest is ninety days past due. The accrual of interest is discontinued earlier when, in the opinion of management, there is reasonable doubt as to the timely collection of interest or principal. Once interest accruals are discontinued, accrued but uncollected interest is charged against current year income. Subsequent receipts on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Interest on loans determined to be troubled debt restructurings is recognized on an accrual basis in accordance with the restructured terms if the loan is in compliance with the modified terms. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. The following tables present impaired loans as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Recorded Balance Unpaid Principal Balance Specific Allowance Recorded Balance Unpaid Principal Balance Specific Allowance Loans with a specific allowance: Construction and land development $ 154 $ 719 $ 26 $ 785 $ 2,960 $ 43 Agricultural real estate — — — — — — 1-4 Family residential properties 416 416 — 67 134 — Multifamily residential properties — — — — — — Commercial real estate 536 607 29 472 986 136 Loans secured by real estate 1,106 1,742 55 1,324 4,080 179 Agricultural loans — — — — — — Commercial and industrial loans 252 387 103 83 181 84 Consumer loans 408 408 379 — — — All other loans — — — — — — Total loans $ 1,766 $ 2,537 $ 537 $ 1,407 $ 4,261 $ 263 Loans without a specific allowance: Construction and land development $ — $ — $ — $ — $ — $ — Agricultural real estate 93 98 — 73 235 — 1-4 Family residential properties 734 1,073 — 1,156 2,866 — Multifamily residential properties — — — — — — Commercial real estate 116 117 — 1,640 3,808 — Loans secured by real estate 943 1,288 — 2,869 6,909 — Agricultural loans — — — — — — Commercial and industrial loans 321 478 — 249 933 — Consumer loans 39 48 — 15 60 — All other loans — — — — — — Total loans $ 1,303 $ 1,814 $ — $ 3,133 $ 7,902 $ — Total loans: Construction and land development $ 154 $ 719 $ 26 $ 785 $ 2,960 $ 43 Agricultural real estate 93 98 — 73 235 — 1-4 Family residential properties 1,150 1,489 — 1,223 3,000 — Multifamily residential properties — — — — — — Commercial real estate 652 724 29 2,112 4,794 136 Loans secured by real estate 2,049 3,030 55 4,193 10,989 179 Agricultural loans — — — — — — Commercial and industrial loans 573 865 103 332 1,114 84 Consumer loans 447 456 379 15 60 — All other loans — — — — — — Total loans $ 3,069 $ 4,351 $ 537 $ 4,540 $ 12,163 $ 263 The following tables present average recorded investment and interest income recognized on impaired loans for the three and six -month periods ended June 30, 2015 and 2014 (in thousands): For the three months ended June 30, 2015 June 30, 2014 Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Construction and land development $ 154 $ — $ 1,112 $ — Agricultural real estate 93 1 36 — 1-4 Family residential properties 1,163 2 1,058 4 Commercial real estate 655 1 2,293 1 Loans secured by real estate 2,065 4 4,499 5 Commercial and industrial loans 584 1 608 — Consumer loans 448 1 35 — Total loans $ 3,097 $ 6 $ 5,142 $ 5 For the six months ended June 30, 2015 June 30, 2014 Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Construction and land development $ 154 $ — $ 1,126 $ — Agricultural real estate 94 2 36 — 1-4 Family residential properties 1,188 3 1,067 6 Commercial real estate 659 1 2,303 1 Loans secured by real estate 2,095 6 4,532 7 Commercial and industrial loans 594 3 627 — Consumer loans 448 1 37 1 Total loans $ 3,137 $ 10 $ 5,196 $ 8 The amount of interest income recognized by the Company within the periods stated above was due to loans modified in a troubled debt restructuring that remained on accrual status. The balance of loans modified in a troubled debt restructuring included in the impaired loans stated above that were still accruing was $67,000 of Farm loans, $342,000 of 1-4 Family residential properties, $36,000 of commercial real estate, $117,000 of commercial & industrial loans and $39,000 of consumer loans at June 30, 2015 and $305,000 of 1-4 family residential properties, $39,000 commercial real estate and $20,000 of consumer loans at June 30, 2014 . For the six months ended June 30, 2015 and 2014 , the amount of interest income recognized using a cash-basis method of accounting during the period that the loans were impaired was not material. Non Accrual Loans The following table presents the Company’s recorded balance of nonaccrual loans as June 30, 2015 and December 31, 2014 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings. June 30, December 31, Construction and land development $ 154 $ 785 Agricultural real estate 26 29 1-4 Family residential properties 808 878 Commercial real estate 616 2,074 Loans secured by real estate 1,604 3,766 Agricultural loans — — Commercial and industrial loans 456 3 |
Repurchase Agreements and Other
Repurchase Agreements and Other Borrowings | 6 Months Ended |
Jun. 30, 2015 | |
Repurchase Agreements and Other Borrowings [Abstract] | |
Repurchase Agreements and Other Borrowings | Repurchase Agreements and Other Borrowings Securities sold under agreements to repurchase were $117.5 million at June 30, 2015 , a decrease of $4.4 million from $121.9 million at December 31, 2014 . The decrease during the first six months of 2015 was primarily due to declines in balances of a few customers due to changes in cash flow needs for their businesses. All of the transactions have overnight maturities. The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third party financial institution in the counterparty's custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Company in a segregated custodial account under a tri-party agreement. The Company is required by the counterparty to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained, while mitigating the potential of over-collateralization in the event of counterparty default. Repurchase agreements by class of collateral pledged are as follows (in thousands): June 30, 2015 US Treasury securities and obligations of U.S. government corporations & agencies $ 70,776 Mortgage-backed securities: GSE: residential 46,692 Total $ 117,468 FHLB borrowings increased $5 million to $25 million at June 30, 2015 from $20 million at December 31, 2014 . At June 30, 2015 the advances were as follows: • $5 million advance with a 2-year maturity , at .57% , due August 26, 2015 • $5 million advance with a 10-year maturity , at 4.58% , due July 14, 2016, one year lockout, callable quarterly • $5 million advance with a 6-year maturity , at 2.30% , due August 24, 2020 • $5 million advance with a 7-year maturity , at 2.55% due October 1, 2021 • $5 million advance with a 8-year maturity , at 2.40% due January 9, 2023 |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | Fair Value of Assets and Liabilities Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Following is a description of the inputs and valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Available-for-Sale Securities. The fair value of available-for-sale securities is determined by various valuation methodologies. Where quoted market prices are available in an active market, securities are classified within Level 1. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independent sources of market parameters, including but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy and include subordinated tranches of collateralized mortgage obligations and investments in trust preferred securities. Fair value determinations for Level 3 measurements of securities are the responsibility of the Treasury function of the Company. The Company contracts with a pricing specialist to generate fair value estimates on a monthly basis. The Treasury function of the Company challenges the reasonableness of the assumptions used and reviews the methodology to ensure the estimated fair value complies with accounting standards generally accepted in the United States, analyzes the changes in fair value and compares these changes to internally developed expectations and monitors these changes for appropriateness. The trust preferred securities are collateralized debt obligation securities that are backed by trust preferred securities issued by banks, thrifts, and insurance companies. The market for these securities at June 30, 2015 is not active and markets for similar securities are also not active. The inactivity was evidenced first by a significant widening of the bid-ask spread in the brokered markets in which trust preferred securities trade and then by a significant decrease in the volume of trades relative to historical levels. The new issue market is also inactive and will continue to be, as a result of the Dodd-Frank Act’s elimination of trust preferred securities from Tier 1 capital for certain holding companies. There are currently very few market participants who are willing and or able to transact for these securities. The market values for these securities are very depressed relative to historical levels. Given conditions in the debt markets today and the absence of observable transactions in the secondary and new issue markets, we determined: • The few observable transactions and market quotations that are available are not reliable for purposes of determining fair value at June 30, 2015 , • An income valuation approach technique (present value technique) that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs will be equally or more representative of fair value than the market approach valuation technique used at prior measurement dates, and • The trust preferred securities held by the Company will be classified within Level 3 of the fair value hierarchy because we determined that significant adjustments are required to determine fair value at the measurement date. The following table presents the Company’s assets that are measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Available-for-sale securities: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 121,734 $ — $ 121,734 $ — Obligations of states and political subdivisions 84,294 — 84,294 — Mortgage-backed securities 209,692 — 209,692 — Trust preferred securities 2,141 — — 2,141 Other securities 4,062 65 3,997 — Total available-for-sale securities $ 421,923 $ 65 $ 419,717 $ 2,141 December 31, 2014 Available-for-sale securities: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 99,957 $ — $ 99,957 $ — Obligations of states and political subdivisions 78,084 — 78,084 — Mortgage-backed securities 195,401 — 195,401 — Trust preferred securities 364 — — 364 Other securities 4,050 55 3,995 — Total available-for-sale securities $ 377,856 $ 55 $ 377,437 $ 364 The change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2015 and 2014 is summarized as follows (in thousands): Trust Preferred Securities June 30, 2015 June 30, 2014 Beginning balance $ 364 $ 191 Transfers into Level 3 — — Transfers out of Level 3 — — Total gains or losses: Included in net income — — Included in other comprehensive income 1,876 381 Purchases, issuances, sales and settlements: Purchases — — Issuances — — Sales — — Settlements (99 ) (203 ) Ending balance $ 2,141 $ 369 Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date $ — $ — Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Impaired Loans (Collateral Dependent). Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment and estimating fair value include using the fair value of the collateral for collateral dependent loans. If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. Management establishes a specific allowance for impaired loans that have an estimated fair value that is below the carrying value. The total carrying amount of loans for which a change in specific allowance has occurred as of June 30, 2015 was $806,000 and a fair value of $298,000 resulting in specific loss exposures of $508,000 . When there is little prospect of collecting principal or interest, loans, or portions of loans, may be charged-off to the allowance for loan losses. Losses are recognized in the period an obligation becomes uncollectible. The recognition of a loss does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan even though partial recovery may be affected in the future. Foreclosed Assets Held For Sale. Other real estate owned acquired through loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. The adjustment at the time of foreclosure is recorded through the allowance for loan losses. Due to the subjective nature of establishing the fair value when the asset is acquired, the actual fair value of the other real estate owned or foreclosed asset could differ from the original estimate. If it is determined that fair value declines subsequent to foreclosure, a valuation allowance is recorded through noninterest expense. Operating costs associated with the assets after acquisition are also recorded as noninterest expense. Gains and losses on the disposition of other real estate owned and foreclosed assets are netted and posted to other noninterest expense. The total carrying amount of other real estate owned as of June 30, 2015 was $278,000 . Other real estate owned included in the total carrying amount and measured at fair value on a nonrecurring basis during the period amounted to $35,000 . The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Impaired loans (collateral dependent) $ 298 $ — $ — $ 298 Foreclosed assets held for sale 35 — — 35 December 31, 2014 Impaired loans (collateral dependent) $ 1,313 $ — $ — $ 1,313 Sensitivity of Significant Unobservable Inputs The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and of how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement. Trust Preferred Securities. The significant unobservable inputs used in the fair value measurement of the Company’s trust preferred securities are offered quotes and comparability adjustments. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, changes in either of those inputs will not affect the other input. The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill (in thousands). Fair Value at June 30, 2015 Valuation Technique Unobservable Inputs Range (Weighted Average) Trust Preferred Securities $ 2,141 Discounted cash flow Discount rate 11.3% Constant prepayment rate (1) 1.3% Cumulative projected prepayments 24.4% Probability of default 0.4% Projected cures given deferral 100.0% Loss severity 97.3% Impaired loans (collateral dependent) $ 298 Third party valuations Discount to reflect realizable value 0 % - 40% ( 20% ) Foreclosed assets held for sale $ 35 Third party valuations Discount to reflect realizable value less estimated selling costs 0 % - 40% ( 35% ) Fair Value at December 31, 2014 Valuation Technique Unobservable Inputs Range (Weighted Average) Trust Preferred Securities $ 364 Discounted cash flow Discount rate 11.6% Constant prepayment rate (1) 1.3% Cumulative projected prepayments 24.4% Probability of default 0.1% Projected cures given deferral 100.0% Loss severity 97.4% Impaired loans (collateral dependent) $ 1,313 Third party valuations Discount to reflect realizable value 0 % - 40% ( 20% ) (1) Every five years Other. The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheets at amounts other than fair value. Cash and Cash Equivalents, Federal Funds Sold, Interest Receivable and Federal Reserve and Federal Home Loan Bank Stock The carrying amount approximates fair value. Held-to-Maturity Securities Fair Value is based on quoted market prices, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Loans Held for Sale Loans expected to be sold are classified as held for sale and are recorded at the lower of aggregate cost or market value. Loans For loans with floating interest rates, it is assumed that the estimated fair values generally approximate the carrying amount balances. Fixed rate loans have been valued using a discounted present value of projected cash flow. The discount rate used in these calculations is the current rate at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The carrying amount of accrued interest approximates its fair value. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount of these deposits approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Securities Sold Under Agreements to Repurchase The fair value of securities sold under agreements to repurchased is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Interest Payable The carrying amount approximates fair value. Junior Subordinated Debentures, Federal Home Loan Bank Borrowings and Other Borrowings Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. The following tables present estimated fair values of the Company’s financial instruments at June 30, 2015 and December 31, 2014 in accordance with FAS 107-1 and APB 28-1, codified with ASC 805 (in thousands): Carrying Amount Fair Value Level 1 Level 2 Level 3 June 30, 2015 Financial Assets Cash and due from banks $ 45,842 $ 45,842 $ 45,842 $ — $ — Federal funds sold 492 492 492 — — Available-for-sale securities 421,923 421,923 65 419,717 2,141 Held-to-maturity securities 43,973 44,505 — 44,505 — Loans held for sale 2,576 2,576 — 2,576 — Loans net of allowance for loan losses 1,042,596 1,048,461 — — 1,048,461 Interest receivable 6,044 6,044 — 6,044 — Federal Reserve Bank stock 1,522 1,522 — 1,522 — Federal Home Loan Bank stock 3,391 3,391 — 3,391 — Financial Liabilities Deposits $ 1,266,199 $ 1,266,301 $ — $ 1,076,898 $ 189,403 Securities sold under agreements to repurchase 117,468 117,484 — 117,484 — Interest payable 302 302 — 302 — Federal Home Loan Bank borrowings 25,000 25,485 — 25,485 — Junior subordinated debentures 20,620 12,557 — 12,557 — December 31, 2014 Financial Assets Cash and due from banks $ 51,236 $ 51,236 $ 51,236 $ — $ — Federal funds sold 494 494 494 — — Available-for-sale securities 377,856 377,856 55 377,437 364 Held-to-maturity securities 53,650 53,937 — 53,937 — Loans held for sale 1,958 1,958 — 1,958 — Loans net of allowance for loan losses 1,046,766 1,051,110 — — 1,051,110 Interest receivable 6,828 6,828 — 6,828 — Federal Reserve Bank stock 1,522 1,522 — 1,522 — Federal Home Loan Bank stock 3,391 3,391 — 3,391 — Financial Liabilities Deposits $ 1,272,077 $ 1,272,358 $ — $ 1,053,800 $ 218,558 Securities sold under agreements to repurchase 121,869 121,870 — 121,870 — Interest payable 285 285 — 285 — Federal Home Loan Bank borrowings 20,000 20,541 — 20,541 — Junior subordinated debentures 20,620 12,528 — 12,528 — |
Basis of Accounting and Conso14
Basis of Accounting and Consolidation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | The components of accumulated other comprehensive income included in stockholders’ equity as of June 30, 2015 and December 31, 2014 are as follows (in thousands): Unrealized Gain (Loss) on Securities Securities with Other-Than-Temporary Impairment Losses Total June 30, 2015 Net unrealized gains on securities available-for-sale $ 601 $ — $ 601 Unamortized losses on held-to-maturity securities transferred from available-for-sale (1,007 ) — (1,007 ) Securities with other-than-temporary impairment losses — (1,060 ) (1,060 ) Tax benefit 158 414 572 Balance at June 30, 2015 $ (248 ) $ (646 ) $ (894 ) December 31, 2014 Net unrealized gains on securities available-for-sale $ 2,829 $ — $ 2,829 Unamortized losses on held-to-maturity securities transferred from available-for-sale (1,328 ) — (1,328 ) Securities with other-than-temporary impairment losses — (2,936 ) (2,936 ) Tax benefit (expense) (586 ) 1,146 560 Balance at December 31, 2014 $ 915 $ (1,790 ) $ (875 ) |
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Income [Table Text Block] | Amounts reclassified from accumulated other comprehensive income and the affected line items in the statements of income during the six months ended June 30, 2015 and 2014 , were as follows (in thousands): Amounts Reclassified from Other Comprehensive Income Affected Line Item in the Statements of Income 2015 2014 Unrealized gains on available-for-sale securities $ 230 734 Securities gains, net (Total reclassified amount before tax) (90 ) (286 ) Income taxes Total reclassifications out of accumulated other comprehensive income $ 140 $ 448 Net reclassified amount |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Components of Basic and Diluted Net Income per Common Share | The components of basic and diluted net income per common share available to common stockholders for the three and six -month period ended June 30, 2015 and 2014 were as follows: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Basic Net Income per Common Share Available to Common Stockholders: Net income $ 4,156,000 $ 4,029,000 $ 8,195,000 $ 7,636,000 Preferred stock dividends (550,000 ) (1,104,000 ) (1,100,000 ) (2,208,000 ) Net income available to common stockholders $ 3,606,000 $ 2,925,000 $ 7,095,000 $ 5,428,000 Weighted average common shares outstanding 7,198,980 5,880,919 7,112,309 5,882,123 Basic earnings per common share $ 0.50 $ 0.49 $ 1.00 $ 0.92 Diluted Net Income per Common Share Available to Common Stockholders: Net income available to common stockholders $ 3,606,000 $ 2,925,000 $ 7,095,000 $ 5,428,000 Effect of assumed preferred stock conversion 550,000 1,104,000 1,100,000 2,208,000 Net income applicable to diluted earnings per share $ 4,156,000 $ 4,029,000 $ 8,195,000 $ 7,636,000 Weighted average common shares outstanding 7,198,980 5,880,919 7,112,309 5,882,123 Dilutive potential common shares: Restricted stock awarded 9,445 9,501 9,445 9,051 Assumed conversion of preferred stock 1,355,348 2,494,569 1,355,348 2,494,679 Dilutive potential common shares 1,364,793 2,504,070 1,364,793 2,503,730 Diluted weighted average common shares outstanding 8,563,773 8,384,989 8,477,102 8,385,853 Diluted earnings per common share $ 0.49 $ 0.48 $ 0.97 $ 0.91 |
Anti-dilutive Securities | The following shares were not considered in computing diluted earnings per share for the three and six -month periods ended June 30, 2015 and 2014 because they were anti-dilutive: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Stock options to purchase shares of common stock 45,500 128,750 45,500 128,750 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Available For Sale And Held For Maturity Securities [Table Text Block] | The amortized cost, gross unrealized gains and losses and estimated fair values for available-for-sale and held-to-maturity securities by major security type at June 30, 2015 and December 31, 2014 were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value June 30, 2015 Available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations & agencies $ 122,307 $ 167 $ (740 ) $ 121,734 Obligations of states and political subdivisions 83,004 1,840 (550 ) 84,294 Mortgage-backed securities: GSE residential 209,835 1,700 (1,843 ) 209,692 Trust preferred securities 3,201 — (1,060 ) 2,141 Other securities 4,035 31 (4 ) 4,062 Total available-for-sale $ 422,382 $ 3,738 $ (4,197 ) $ 421,923 Held-to-maturity: U.S. Treasury securities and obligations of U.S. government corporations & agencies $ 43,973 $ 532 $ — $ 44,505 December 31, 2014 Available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations & agencies $ 101,224 $ 91 $ (1,358 ) $ 99,957 Obligations of states and political subdivisions 75,589 2,608 (113 ) 78,084 Mortgage-backed securities: GSE residential 193,814 2,548 (961 ) 195,401 Trust preferred securities 3,300 — (2,936 ) 364 Other securities 4,036 26 (12 ) 4,050 Total available-for-sale $ 377,963 $ 5,273 $ (5,380 ) $ 377,856 Held-to-maturity: U.S. Treasury securities and obligations of U.S. government corporations & agencies $ 53,650 $ 299 $ (12 ) $ 53,937 During the third quarter of 2014, management evaluated its available-for-sale portfolio and transferred obligations of U.S. government corporations & agencies securities with a fair value of $53.6 million from available-for-sale to held-to-maturity to reduce price volatility. Management determined it has both the intent and ability to hold these securities to maturity. Transfers of investment securities into the held-to-maturity category from available-for-sale are made at fair value on the date of transfer. There were no gains or losses recognized as a result of this transfer. The related $1.4 million of unrealized holding loss that was included in the transfer is retained in the carrying value of the held-to-maturity securities and in other comprehensive income net of deferred taxes. These amounts are being amortized into net interest income over the remaining life of the related securities as a yield adjustment, resulting in no impact on future net income. Trust preferred securities represent one trust preferred pooled security issued by First Tennessee Financial (“FTN”). The unrealized loss of this security, which has a remaining maturity of twenty-two years , is primarily due to its long-term nature, a lack of demand or inactive market for the security, and concerns regarding the underlying financial institutions that have issued the trust preferred security. See the heading “Trust Preferred Securities” for further information regarding this security. |
Realized Gains and Losses From Sale of Securities | Realized gains and losses resulting from sales of securities were as follows during the six months ended June 30, 2015 and 2014 (in thousands): June 30, June 30, Gross gains $ 230 $ 1,435 Gross losses — (701 ) |
Investments Classified by Contractual Maturity Date | The following table indicates the expected maturities of investment securities classified as available-for-sale presented at fair value, and held-to-maturity presented at amortized cost, at June 30, 2015 and the weighted average yield for each range of maturities (dollars in thousands): One year or less After 1 through 5 years After 5 through 10 years After ten years Total Available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 80,168 $ 41,566 $ — $ — $ 121,734 Obligations of state and political subdivisions 4,928 41,476 36,950 940 84,294 Mortgage-backed securities: GSE residential 1,026 110,463 98,203 — 209,692 Trust preferred securities — — — 2,141 2,141 Other securities — 3,998 — 64 4,062 Total available-for-sale investments $ 86,122 $ 197,503 $ 135,153 $ 3,145 $ 421,923 Weighted average yield 1.68 % 2.36 % 2.69 % 1.65 % 2.32 % Full tax-equivalent yield 1.84 % 2.85 % 3.30 % 2.18 % 2.78 % Held to Maturity: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 24,543 $ 9,714 $ 9,716 $ — $ 43,973 Weighted average yield 2.30 % 2.10 % 2.33 % — % 2.31 % Full tax-equivalent yield 2.30 % 2.10 % 2.33 % — % 2.31 % The weighted average yields are calculated on the basis of the amortized cost and effective yields weighted for the scheduled maturity of each security. Tax-equivalent yields have been calculated using a 35% tax rate. With the exception of obligations of the U.S. Treasury and other U.S. government agencies and corporations, there were no investment securities of any single issuer, the book value of which exceeded 10% of stockholders' equity at June 30, 2015 . |
Fair value of investments with sustained gross unrealized losses | The following table presents the aging of gross unrealized losses and fair value by investment category as of June 30, 2015 and December 31, 2014 (in thousands): Less than 12 months 12 months or more Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2015 Available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 31,099 $ (150 ) $ 53,504 $ (590 ) $ 84,603 $ (740 ) Obligations of states and political subdivisions 25,006 (461 ) 1,153 (89 ) 26,159 (550 ) Mortgage-backed securities: GSE residential 115,116 (1,145 ) 21,679 (698 ) 136,795 (1,843 ) Trust preferred securities — — 2,141 (1,060 ) 2,141 (1,060 ) Other securities 1,996 (4 ) — — 1,996 (4 ) Total $ 173,217 $ (1,760 ) $ 78,477 $ (2,437 ) $ 251,694 $ (4,197 ) Held-to-maturity: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ — $ — $ — $ — $ — $ — December 31, 2014 Available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 7,289 $ (46 ) $ 75,030 $ (1,312 ) $ 82,319 $ (1,358 ) Obligations of states and political subdivisions 3,586 (19 ) 4,416 (94 ) 8,002 (113 ) Mortgage-backed securities: GSE residential 19,565 (159 ) 37,224 (802 ) 56,789 (961 ) Trust preferred securities — — 364 (2,936 ) 364 (2,936 ) Other securities — — 1,988 (12 ) 1,988 (12 ) Total $ 30,440 $ (224 ) $ 119,022 $ (5,156 ) $ 149,462 $ (5,380 ) Held-to-maturity: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 4,853 $ (12 ) $ — $ — $ 4,853 $ (12 ) |
Trust Preferred Securities [Table Text Block] | Following are the details for the currently impaired trust preferred security (in thousands): Book Value Market Value Unrealized Gains (Losses) Other-than- temporary Impairment Recorded To-date PreTSL XXVIII $ 3,201 $ 2,141 $ (1,060 ) $ (1,111 ) |
Credit Losses Recognized on Investments | Credit Losses Recognized on Investments. As described above, the Company’s investment in trust preferred security has experienced fair value deterioration due to credit losses but is not otherwise other-than-temporarily impaired. The following table provides information about the trust preferred security for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the six months ended June 30, 2015 and 2014 (in thousands). Accumulated Credit Losses June 30, 2015 June 30, 2014 Credit losses on trust preferred securities held Beginning of period $ 1,111 $ 1,111 Additions related to OTTI losses not previously recognized — — Reductions due to sales / (recoveries) — — Reductions due to change in intent or likelihood of sale — — Additions related to increases in previously recognized OTTI losses — — Reductions due to increases in expected cash flows — — End of period $ 1,111 $ 1,111 |
Loans and Allowance for Loan 17
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Summary of Loans | Loans are stated at the principal amount outstanding net of unearned discounts, unearned income and allowance for loan losses. Unearned income includes deferred loan origination fees reduced by loan origination costs and is amortized to interest income over the life of the related loan using methods that approximated the effective interest rate method. Interest on substantially all loans is credited to income based on the principal amount outstanding. A summary of loans at June 30, 2015 and December 31, 2014 follows (in thousands): June 30, December 31, Construction and land development $ 27,420 $ 21,627 Agricultural real estate 112,270 110,158 1-4 Family residential properties 170,697 179,886 Multifamily residential properties 52,422 53,129 Commercial real estate 372,213 380,173 Loans secured by real estate 735,022 744,973 Agricultural loans 59,641 68,225 Commercial and industrial loans 238,981 223,633 Consumer loans 14,560 15,118 All other loans 8,453 8,736 Gross loans 1,056,657 1,060,685 Less: Net deferred loan fees, premiums and discounts 130 237 Allowance for loan losses 13,931 13,682 Net loans $ 1,042,596 $ 1,046,766 |
Allowance for Loan Losses and Recorded Investment in Loans | following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method for the three and six -months ended June 30, 2015 and 2014 and for the year ended December 31, 2014 (in thousands): Commercial/ Commercial Real Estate Agricultural/ Agricultural Real Estate Residential Real Estate Consumer Unallocated Total Three months ended June 30, 2015 Allowance for loan losses: Balance, beginning of period $ 11,459 $ 1,291 $ 753 $ 386 $ 217 $ 14,106 Provision charged to expense (123 ) 20 (7 ) 258 (5 ) 143 Losses charged off (62 ) — (15 ) (304 ) — (381 ) Recoveries 20 1 — 42 — 63 Balance, end of period $ 11,294 $ 1,312 $ 731 $ 382 $ 212 $ 13,931 Ending balance: Individually evaluated for impairment $ 537 $ — $ — $ — $ — $ 537 Collectively evaluated for impairment $ 10,757 $ 1,312 $ 731 $ 382 $ 212 $ 13,394 Three months ended June 30, 2014 Allowance for loan losses: Balance, beginning of period $ 10,581 $ 503 $ 760 $ 372 $ 1,387 $ 13,603 Provision charged to expense 200 21 6 27 (126 ) 128 Losses charged off (28 ) — (14 ) (60 ) — (102 ) Recoveries 18 — 5 29 — 52 Balance, end of period $ 10,771 $ 524 $ 757 $ 368 $ 1,261 $ 13,681 Ending balance: Individually evaluated for impairment $ 322 $ — $ — $ — $ — $ 322 Collectively evaluated for impairment $ 10,449 $ 524 $ 757 $ 368 $ 1,261 $ 13,359 Six months ended June 30, 2015 Allowance for loan losses: Balance, beginning of year $ 10,914 $ 1,360 $ 790 $ 386 $ 232 $ 13,682 Provision charged to expense 235 (49 ) (20 ) 262 (20 ) 408 Losses charged off (71 ) — (40 ) (360 ) — (471 ) Recoveries 216 1 1 94 — 312 Balance, end of period $ 11,294 $ 1,312 $ 731 $ 382 $ 212 $ 13,931 Ending balance: Individually evaluated for impairment $ 537 $ — $ — $ — $ — $ 537 Collectively evaluated for impairment $ 10,757 $ 1,312 $ 731 $ 382 $ 212 $ 13,394 Loans: Ending balance $ 696,596 $ 171,376 $ 175,680 $ 15,451 $ — $ 1,059,103 Ending balance: Individually evaluated for impairment $ 1,766 $ — $ — $ — $ — $ 1,766 Collectively evaluated for impairment $ 694,830 $ 171,376 $ 175,680 $ 15,451 $ — $ 1,057,337 Commercial/ Commercial Real Estate Agricultural/ Agricultural Real Estate Residential Real Estate Consumer Unallocated Total Six months ended June 30, 2014 Allowance for loan losses: Balance, beginning of year $ 10,646 $ 533 $ 771 $ 377 $ 922 $ 13,249 Provision charged to expense 75 (10 ) 11 36 339 451 Losses charged off (32 ) — (45 ) (105 ) — (182 ) Recoveries 82 1 20 60 — 163 Balance, end of period $ 10,771 $ 524 $ 757 $ 368 $ 1,261 $ 13,681 Ending balance: Individually evaluated for impairment $ 322 $ — $ — $ — $ — $ 322 Collectively evaluated for impairment $ 10,449 $ 524 $ 757 $ 368 $ 1,261 $ 13,359 Loans: Ending balance $ 657,352 $ 164,841 $ 185,754 $ 14,304 $ — $ 1,022,251 Ending balance: Individually evaluated for impairment $ 3,648 $ — $ — $ — $ — $ 3,648 Collectively evaluated for impairment $ 653,704 $ 164,841 $ 185,754 $ 14,304 $ — $ 1,018,603 Year ended December 31, 2014 Allowance for loan losses: Balance, beginning of year $ 10,646 $ 533 $ 771 $ 377 $ 922 $ 13,249 Provision charged to expense 192 825 135 167 (690 ) 629 Losses charged off (86 ) — (140 ) (311 ) — (537 ) Recoveries 162 2 24 153 — 341 Balance, end of year $ 10,914 $ 1,360 $ 790 $ 386 $ 232 $ 13,682 Ending balance: Individually evaluated for impairment $ 263 $ — $ — $ — $ — $ 263 Collectively evaluated for impairment $ 10,651 $ 1,360 $ 790 $ 386 $ 232 $ 13,419 Loans: Ending balance $ 684,552 $ 178,091 $ 184,661 $ 15,102 $ — $ 1,062,406 Ending balance: Individually evaluated for impairment $ 3,301 $ — $ — $ — $ — $ 3,301 Collectively evaluated for impairment $ 681,251 $ 178,091 $ 184,661 $ 15,102 $ — $ 1,059,105 |
Credit Risk Profile of the Company's Loan Portfolio | Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered pass rated loans. The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of June 30, 2015 and December 31, 2014 (in thousands): Construction & Land Development Agricultural Real Estate 1-4 Family Residential Properties Multifamily Residential Properties 2015 2014 2015 2014 2015 2014 2015 2014 Pass $ 27,266 $ 20,842 $ 109,463 $ 107,976 $ 169,911 $ 177,764 $ 51,842 $ 52,793 Watch — — 1,767 1,036 925 1,187 249 — Substandard 154 785 1,072 1,181 2,516 2,970 331 336 Doubtful — — — — — — — — Total $ 27,420 $ 21,627 $ 112,302 $ 110,193 $ 173,352 $ 181,921 $ 52,422 $ 53,129 Commercial Real Estate (Nonfarm/Nonresidential) Agricultural Loans Commercial & Industrial Loans Consumer Loans 2015 2014 2015 2014 2015 2014 2015 2014 Pass $ 349,417 $ 357,873 $ 58,798 $ 67,619 $ 233,151 $ 218,193 $ 14,152 $ 15,105 Watch 21,456 18,817 228 — 4,790 4,647 — 9 Substandard 879 2,914 693 679 1,182 940 408 4 Doubtful — — — — — — — — Total $ 371,752 $ 379,604 $ 59,719 $ 68,298 $ 239,123 $ 223,780 $ 14,560 $ 15,118 All Other Loans Total Loans 2015 2014 2015 2014 Pass $ 8,453 $ 8,736 $ 1,022,453 $ 1,026,901 Watch — — 29,415 25,696 Substandard — — 7,235 9,809 Doubtful — — — — Total $ 8,453 $ 8,736 $ 1,059,103 $ 1,062,406 |
Loan Portfolio Aging Analysis | The following table presents the Company’s loan portfolio aging analysis at June 30, 2015 and December 31, 2014 (in thousands): 30-59 days Past Due 60-89 days Past Due 90 Days or More Past Due Total Past Due Current Total Loans Receivable Total Loans > 90 days & Accruing June 30, 2015 Construction and land development $ — $ — $ — $ — $ 27,420 $ 27,420 $ — Agricultural real estate 147 — — 147 112,155 112,302 — 1-4 Family residential properties 398 176 182 756 172,596 173,352 — Multifamily residential properties — — — — 52,422 52,422 — Commercial real estate 3 126 395 524 371,228 371,752 — Loans secured by real estate 548 302 577 1,427 735,821 737,248 — Agricultural loans — — — — 59,719 59,719 — Commercial and industrial loans 559 35 145 739 238,384 239,123 — Consumer loans 37 18 5 60 14,500 14,560 — All other loans — — — — 8,453 8,453 — Total loans $ 1,144 $ 355 $ 727 $ 2,226 $ 1,056,877 $ 1,059,103 $ — December 31, 2014 Construction and land development $ 297 $ 25 $ — $ 322 $ 21,305 $ 21,627 $ — Agricultural real estate — — — — 110,193 110,193 — 1-4 Family residential properties 201 224 385 810 181,111 181,921 — Multifamily residential properties — — — — 53,129 53,129 — Commercial real estate 60 32 945 1,037 378,567 379,604 — Loans secured by real estate 558 281 1,330 2,169 744,305 746,474 — Agricultural loans 16 20 — 36 68,262 68,298 — Commercial and industrial loans 228 10 98 336 223,444 223,780 — Consumer loans 331 10 5 346 14,772 15,118 — All other loans — — — — 8,736 8,736 — Total loans $ 1,133 $ 321 $ 1,433 $ 2,887 $ 1,059,519 $ 1,062,406 $ — |
Impaired Loans | The following tables present impaired loans as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Recorded Balance Unpaid Principal Balance Specific Allowance Recorded Balance Unpaid Principal Balance Specific Allowance Loans with a specific allowance: Construction and land development $ 154 $ 719 $ 26 $ 785 $ 2,960 $ 43 Agricultural real estate — — — — — — 1-4 Family residential properties 416 416 — 67 134 — Multifamily residential properties — — — — — — Commercial real estate 536 607 29 472 986 136 Loans secured by real estate 1,106 1,742 55 1,324 4,080 179 Agricultural loans — — — — — — Commercial and industrial loans 252 387 103 83 181 84 Consumer loans 408 408 379 — — — All other loans — — — — — — Total loans $ 1,766 $ 2,537 $ 537 $ 1,407 $ 4,261 $ 263 Loans without a specific allowance: Construction and land development $ — $ — $ — $ — $ — $ — Agricultural real estate 93 98 — 73 235 — 1-4 Family residential properties 734 1,073 — 1,156 2,866 — Multifamily residential properties — — — — — — Commercial real estate 116 117 — 1,640 3,808 — Loans secured by real estate 943 1,288 — 2,869 6,909 — Agricultural loans — — — — — — Commercial and industrial loans 321 478 — 249 933 — Consumer loans 39 48 — 15 60 — All other loans — — — — — — Total loans $ 1,303 $ 1,814 $ — $ 3,133 $ 7,902 $ — Total loans: Construction and land development $ 154 $ 719 $ 26 $ 785 $ 2,960 $ 43 Agricultural real estate 93 98 — 73 235 — 1-4 Family residential properties 1,150 1,489 — 1,223 3,000 — Multifamily residential properties — — — — — — Commercial real estate 652 724 29 2,112 4,794 136 Loans secured by real estate 2,049 3,030 55 4,193 10,989 179 Agricultural loans — — — — — — Commercial and industrial loans 573 865 103 332 1,114 84 Consumer loans 447 456 379 15 60 — All other loans — — — — — — Total loans $ 3,069 $ 4,351 $ 537 $ 4,540 $ 12,163 $ 263 |
Impaired loans by portfolio class | The following tables present average recorded investment and interest income recognized on impaired loans for the three and six -month periods ended June 30, 2015 and 2014 (in thousands): For the three months ended June 30, 2015 June 30, 2014 Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Construction and land development $ 154 $ — $ 1,112 $ — Agricultural real estate 93 1 36 — 1-4 Family residential properties 1,163 2 1,058 4 Commercial real estate 655 1 2,293 1 Loans secured by real estate 2,065 4 4,499 5 Commercial and industrial loans 584 1 608 — Consumer loans 448 1 35 — Total loans $ 3,097 $ 6 $ 5,142 $ 5 For the six months ended June 30, 2015 June 30, 2014 Average Investment in Impaired Loans Interest Income Recognized Average Investment in Impaired Loans Interest Income Recognized Construction and land development $ 154 $ — $ 1,126 $ — Agricultural real estate 94 2 36 — 1-4 Family residential properties 1,188 3 1,067 6 Commercial real estate 659 1 2,303 1 Loans secured by real estate 2,095 6 4,532 7 Commercial and industrial loans 594 3 627 — Consumer loans 448 1 37 1 Total loans $ 3,137 $ 10 $ 5,196 $ 8 |
Nonaccrual Loans | The following table presents the Company’s recorded balance of nonaccrual loans as June 30, 2015 and December 31, 2014 (in thousands). This table excludes purchased impaired loans and performing troubled debt restructurings. June 30, December 31, Construction and land development $ 154 $ 785 Agricultural real estate 26 29 1-4 Family residential properties 808 878 Commercial real estate 616 2,074 Loans secured by real estate 1,604 3,766 Agricultural loans — — Commercial and industrial loans 456 332 Consumer loans 408 7 Total loans $ 2,468 $ 4,105 |
Recorded Balance of Troubled Debt Restructurings | The following table presents the Company’s recorded balance of troubled debt restructurings at June 30, 2015 and December 31, 2014 (in thousands). Troubled debt restructurings: June 30, December 31, Construction and land development $ 153 $ 785 Agricultural real estate 67 44 1-4 Family residential properties 481 503 Commercial real estate 256 1,283 Loans secured by real estate 957 2,615 Commercial and industrial loans 434 236 Consumer loans 447 9 Total $ 1,838 $ 2,860 Performing troubled debt restructurings: Agricultural real estate $ 67 $ 44 1-4 Family residential properties 342 $ 345 Commercial real estate 36 37 Loans secured by real estate 445 426 Commercial and industrial loans 117 — Consumer loans 39 9 Total $ 601 $ 435 |
Financing Receivables,Troubled Debt Restructurings during period [Table Text Block] | The following table presents loans modified as TDRs during the six months ended June 30, 2015 and 2014 , as a result of various modified loan factors (in thousands): June 30, 2015 June 30, 2014 Number of Modifications Recorded Investment Type of Modifications Number of Modifications Recorded Investment Type of Modifications Farm Loans 1 23 (b) — $ — 1-4 Family residential properties 4 79 (b)(c) 2 $ 207 (c) Commercial real estate — — 1 501 (b)(c) Loans secured by real estate 5 102 3 708 Commercial and industrial loans 2 227 (b)(c) — — Consumer Loans 3 439 (b)(c) — — Total 10 $ 768 3 $ 708 |
Fair Value of Assets and Liab18
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | The following table presents the Company’s assets that are measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Available-for-sale securities: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 121,734 $ — $ 121,734 $ — Obligations of states and political subdivisions 84,294 — 84,294 — Mortgage-backed securities 209,692 — 209,692 — Trust preferred securities 2,141 — — 2,141 Other securities 4,062 65 3,997 — Total available-for-sale securities $ 421,923 $ 65 $ 419,717 $ 2,141 December 31, 2014 Available-for-sale securities: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 99,957 $ — $ 99,957 $ — Obligations of states and political subdivisions 78,084 — 78,084 — Mortgage-backed securities 195,401 — 195,401 — Trust preferred securities 364 — — 364 Other securities 4,050 55 3,995 — Total available-for-sale securities $ 377,856 $ 55 $ 377,437 $ 364 |
Fair Value of Assets Measured on a Recurring Basis Using Significant Unobservable Inputs | The change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2015 and 2014 is summarized as follows (in thousands): Trust Preferred Securities June 30, 2015 June 30, 2014 Beginning balance $ 364 $ 191 Transfers into Level 3 — — Transfers out of Level 3 — — Total gains or losses: Included in net income — — Included in other comprehensive income 1,876 381 Purchases, issuances, sales and settlements: Purchases — — Issuances — — Sales — — Settlements (99 ) (203 ) Ending balance $ 2,141 $ 369 Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date $ — $ — |
Assets Measured at Fair Value on a Nonrecurring Basis | The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015 and December 31, 2014 (in thousands): Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Impaired loans (collateral dependent) $ 298 $ — $ — $ 298 Foreclosed assets held for sale 35 — — 35 December 31, 2014 Impaired loans (collateral dependent) $ 1,313 $ — $ — $ 1,313 |
Significant Assumptions Used in Valuation of Level 3 Financial Instruments | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements other than goodwill (in thousands). Fair Value at June 30, 2015 Valuation Technique Unobservable Inputs Range (Weighted Average) Trust Preferred Securities $ 2,141 Discounted cash flow Discount rate 11.3% Constant prepayment rate (1) 1.3% Cumulative projected prepayments 24.4% Probability of default 0.4% Projected cures given deferral 100.0% Loss severity 97.3% Impaired loans (collateral dependent) $ 298 Third party valuations Discount to reflect realizable value 0 % - 40% ( 20% ) Foreclosed assets held for sale $ 35 Third party valuations Discount to reflect realizable value less estimated selling costs 0 % - 40% ( 35% ) Fair Value at December 31, 2014 Valuation Technique Unobservable Inputs Range (Weighted Average) Trust Preferred Securities $ 364 Discounted cash flow Discount rate 11.6% Constant prepayment rate (1) 1.3% Cumulative projected prepayments 24.4% Probability of default 0.1% Projected cures given deferral 100.0% Loss severity 97.4% Impaired loans (collateral dependent) $ 1,313 Third party valuations Discount to reflect realizable value 0 % - 40% ( 20% ) (1) Every five years |
Carrying Amounts and Estimated Fair Values of Financial Instruments Not Carried at Fair Value | The following tables present estimated fair values of the Company’s financial instruments at June 30, 2015 and December 31, 2014 in accordance with FAS 107-1 and APB 28-1, codified with ASC 805 (in thousands): Carrying Amount Fair Value Level 1 Level 2 Level 3 June 30, 2015 Financial Assets Cash and due from banks $ 45,842 $ 45,842 $ 45,842 $ — $ — Federal funds sold 492 492 492 — — Available-for-sale securities 421,923 421,923 65 419,717 2,141 Held-to-maturity securities 43,973 44,505 — 44,505 — Loans held for sale 2,576 2,576 — 2,576 — Loans net of allowance for loan losses 1,042,596 1,048,461 — — 1,048,461 Interest receivable 6,044 6,044 — 6,044 — Federal Reserve Bank stock 1,522 1,522 — 1,522 — Federal Home Loan Bank stock 3,391 3,391 — 3,391 — Financial Liabilities Deposits $ 1,266,199 $ 1,266,301 $ — $ 1,076,898 $ 189,403 Securities sold under agreements to repurchase 117,468 117,484 — 117,484 — Interest payable 302 302 — 302 — Federal Home Loan Bank borrowings 25,000 25,485 — 25,485 — Junior subordinated debentures 20,620 12,557 — 12,557 — December 31, 2014 Financial Assets Cash and due from banks $ 51,236 $ 51,236 $ 51,236 $ — $ — Federal funds sold 494 494 494 — — Available-for-sale securities 377,856 377,856 55 377,437 364 Held-to-maturity securities 53,650 53,937 — 53,937 — Loans held for sale 1,958 1,958 — 1,958 — Loans net of allowance for loan losses 1,046,766 1,051,110 — — 1,051,110 Interest receivable 6,828 6,828 — 6,828 — Federal Reserve Bank stock 1,522 1,522 — 1,522 — Federal Home Loan Bank stock 3,391 3,391 — 3,391 — Financial Liabilities Deposits $ 1,272,077 $ 1,272,358 $ — $ 1,053,800 $ 218,558 Securities sold under agreements to repurchase 121,869 121,870 — 121,870 — Interest payable 285 285 — 285 — Federal Home Loan Bank borrowings 20,000 20,541 — 20,541 — Junior subordinated debentures 20,620 12,528 — 12,528 — |
Basis of Accounting and Conso19
Basis of Accounting and Consolidation Basis of Accounting and Consolidation 1 (Details) - shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares to be issued in stock incentive plan (in shares) | 300,000 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock awarded in SI plan (in shares) | 59,500 | |
Stock Unit Awards and Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock awarded in SI plan (in shares) | 16,604 | 14,770 |
Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Awards Issued (in hundredths) | 50.00% | |
Stock Unit Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Awards Issued (in hundredths) | 50.00% |
Basis of Accounting and Conso20
Basis of Accounting and Consolidation Basis of Accounting and Consolidation 2 (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Dec. 31, 2014USD ($)shares | Jun. 30, 2015USD ($)directordividend_period$ / sharesshares | Dec. 31, 2009USD ($)$ / shares | Jun. 28, 2012USD ($) | May. 13, 2011USD ($) | Mar. 02, 2011USD ($)investors | Feb. 11, 2011USD ($)$ / shares | Dec. 31, 2010$ / shares | |
Series C Convertible Preferred Stock [Abstract] | ||||||||
Preferred Stock issued during period, value | $ 27,400,000 | $ 27,400,000 | ||||||
Series B Convertible Preferred Stock [Member] | ||||||||
Series B Convertible Preferred Stock [Abstract] | ||||||||
Preferred stock issue price (in dollars per share) | $ / shares | $ 5,000 | |||||||
Preferred stock, revised conversion price per share (in dollars per share) | $ / shares | $ 0 | |||||||
Preferred Stock, Shares Outstanding | shares | 4,926 | |||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 24,635,000 | |||||||
Preferred Stock, Dividend Rate, Percentage (in hundredths) | 9.00% | |||||||
Convertible Preferred Stock, Shares Issued upon Conversion | shares | 231.267 | |||||||
Conversion of Stock, Shares Issued | shares | 1,139,195 | |||||||
Series C Convertible Preferred Stock [Abstract] | ||||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 24,635,000 | |||||||
Preferred Stock, Dividend Rate, Percentage (in hundredths) | 9.00% | |||||||
Series C Convertible Preferred Stock [Member] | ||||||||
Series B Convertible Preferred Stock [Abstract] | ||||||||
Preferred stock issue price (in dollars per share) | $ / shares | $ 5,000 | |||||||
Liquidation preference per share (in dollars per share) | $ 5,000 | |||||||
Preferred stock, conversion price per share (in dollars per share) | $ / shares | $ 20.29 | |||||||
Preferred stock, redemption price per share (in dollars per share) | $ / shares | $ 5,000 | |||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 27,500,000 | |||||||
Preferred Stock, Dividend Rate, Percentage (in hundredths) | 8.00% | |||||||
Series C Convertible Preferred Stock [Abstract] | ||||||||
Preferred Stock, shares subscribed, value | $ 27,500,000 | |||||||
Number of Investors Completing the Required Bank Regulatory Process | 4 | 3 | ||||||
Preferred Stock issued during period, value | $ 8,250,000 | $ 5,490,000 | $ 2,750,000 | $ 11,010,000 | ||||
Percentage of common stock tangible book value required for the conversion of common stock (in hundredths) | 115.00% | |||||||
Tangible book value per share of common stock (in dollars per share) | $ / shares | $ 17 | $ 9.38 | ||||||
Number of dividend periods | dividend_period | 4 | |||||||
Number of Directors to be Elected by Holders of Preferred Stock | director | 2 | |||||||
Percentage of the NASDAQ Bank Index required for the conversion of Series C Preferred Stock (in hundredths) | 115.00% | |||||||
115% of common stock tangible book value (in dollars per share) | $ / shares | $ 10.79 | |||||||
NASDAQ Bank Index | 2,822.80 | 1,847.35 | ||||||
115% of NASDAQ Bank Index | 2,124.45 | |||||||
Proceeds from Issuance of Convertible Preferred Stock | $ 27,500,000 | |||||||
Preferred Stock, Dividend Rate, Percentage (in hundredths) | 8.00% |
Basis of Accounting and Conso21
Basis of Accounting and Consolidation 3 (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Net unrealized gains on securities available-for-sale | $ 601,000 | $ 2,829,000 |
Held-to-maturity Securities, Unrecognized Holding Loss | (1,007,000) | (1,328,000) |
Unrealized gain (loss) on available-for-sale securities, tax benefit | 158,000 | (586,000) |
Total unrealized gain (loss) on available for sale securities, net of tax | (248,000) | 915,000 |
Securities with other-than-temporary impairment losses | (1,060,000) | (2,936,000) |
Securities with other-than-temporary impairment losses, tax benefit | 414,000 | 1,146,000 |
Total securities with other-than-temporary impairment losses, net of tax | (646,000) | (1,790,000) |
Accumulated other comprehensive income, tax | 572,000 | 560,000 |
Total accumulated other comprehensive income, net of tax | (894,000) | $ (875,000) |
Series C Convertible Preferred Stock [Member] | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Liquidation preference per share (in dollars per share) | 5,000 | |
Proceeds from Issuance of Convertible Preferred Stock | $ 27,500,000 | |
Preferred Stock, Dividend Rate, Percentage (in hundredths) | 8.00% | |
Preferred stock, redemption price per share (in dollars per share) | $ 5,000 |
Basis of Accounting and Conso22
Basis of Accounting and Consolidation Basis of Accounting and Consolidation 4 (Details) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Gain (Loss) on Sale of Securities, Net | $ 1 | $ 543 | $ 230 | $ 734 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax | (90) | (286) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | $ 140 | $ 448 |
Basis of Accounting and Conso23
Basis of Accounting and Consolidation Basis of Accounting and Consolidation PA (Details) | 3 Months Ended | ||
Jun. 30, 2015USD ($)branchshares | Jun. 18, 2015$ / shares | Dec. 31, 2014USD ($) | |
Branch Purchase and Assumption Agreement [Abstract] | |||
Number of Businesses Acquired | branch | 12 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits | $ 160,000,000 | ||
Business Combination, Recognized Identifiable Assets and Liabilities Assumed, Loans | $ 502,000,000 | ||
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||
Stock Issued During Period, Shares, New Issues | shares | 1,392,859 | ||
Shares Issued, Price Per Share | $ / shares | $ 21 | ||
Stock Issued During Period, Value, New Issues | $ 29,250,039 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic Net Income per Common Share Available to Common Stockholders [Abstract] | ||||
Net income | $ 4,156,000 | $ 4,029,000 | $ 8,195,000 | $ 7,636,000 |
Preferred stock dividends | (550,000) | (1,104,000) | (1,100,000) | (2,208,000) |
Net income available to common stockholders | $ 3,606,000 | $ 2,925,000 | $ 7,095,000 | $ 5,428,000 |
Weighted average common shares outstanding | 7,198,980 | 5,880,919 | 7,112,309 | 5,882,123 |
Basic earnings per common share | $ 0.50 | $ 0.49 | $ 1 | $ 0.92 |
Diluted Net Income per Common Share Available to Common Stockholders [Abstract] | ||||
Net income available to common stockholders | $ 3,606,000 | $ 2,925,000 | $ 7,095,000 | $ 5,428,000 |
Effect of assumed preferred stock conversion | 550,000 | 1,104,000 | 1,100,000 | 2,208,000 |
Net income applicable to diluted earnings per share | $ 4,156,000 | $ 4,029,000 | $ 8,195,000 | $ 7,636,000 |
Weighted average common shares outstanding | 7,198,980 | 5,880,919 | 7,112,309 | 5,882,123 |
Dilutive potential common shares [Abstract] | ||||
Restricted stock awarded | 9,445 | 9,501 | 9,445 | 9,051 |
Assumed conversion of preferred stock | 1,355,348 | 2,494,569 | 1,355,348 | 2,494,679 |
Dilutive potential common shares | 1,364,793 | 2,504,070 | 1,364,793 | 2,503,730 |
Diluted weighted average common shares outstanding | 8,563,773 | 8,384,989 | 8,477,102 | 8,385,853 |
Diluted net income per common share available to common stockholders | $ 0.49 | $ 0.48 | $ 0.97 | $ 0.91 |
Stock options to purchase shares of common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share (in shares) | 45,500 | 128,750 | 45,500 | 128,750 |
Investment Securities (Details)
Investment Securities (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)securities | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Available-for-sale: [Abstract] | |||||
Amortized Cost | $ 422,382 | $ 422,382 | $ 377,963 | ||
Gross Unrealized Gains | 3,738 | 3,738 | 5,273 | ||
Gross Unrealized (Losses) | (4,197) | (4,197) | (5,380) | ||
Fair Value | 421,923 | 421,923 | 377,856 | ||
Gain (Loss) on Sale of Securities, Net | 1 | $ 543 | 230 | $ 734 | |
Held-to-maturity: [Abstract] | |||||
Held-to-maturity Securities | 43,973 | 43,973 | 53,650 | ||
Held-to-maturity Securities, Fair Value | 44,505 | 44,505 | 53,937 | ||
Realized Investment Gains (Losses) [Abstract] | |||||
Gross gains | 230 | 1,435 | |||
Gross losses | 0 | $ (701) | |||
U.S. Treasury securities and obligations of U.S. government corporations & agencies | |||||
Available-for-sale: [Abstract] | |||||
Amortized Cost | 122,307 | 122,307 | 101,224 | ||
Gross Unrealized Gains | 167 | 167 | 91 | ||
Gross Unrealized (Losses) | (740) | (740) | (1,358) | ||
Fair Value | 121,734 | 121,734 | 99,957 | ||
Held-to-maturity: [Abstract] | |||||
Held-to-maturity Securities | 43,973 | 43,973 | 53,650 | ||
Held-to-maturity Securities, Accumulated Unrecognized Holding Gain | 532 | 532 | 299 | ||
Held-to-maturity Securities, Accumulated Unrecognized Holding Loss | 0 | 0 | (12) | ||
Held-to-maturity Securities, Fair Value | 44,505 | 44,505 | 53,937 | ||
Available-For-Sale Securities Transferred to Held-To-Maturity, Carrying Value | 53,600 | 53,600 | |||
Available-For-Sale Transfers To Held-To-Maturity, Gross Losses | 1,400 | ||||
Obligations of states and political subdivisions | |||||
Available-for-sale: [Abstract] | |||||
Amortized Cost | 83,004 | 83,004 | 75,589 | ||
Gross Unrealized Gains | 1,840 | 1,840 | 2,608 | ||
Gross Unrealized (Losses) | (550) | (550) | (113) | ||
Fair Value | 84,294 | 84,294 | 78,084 | ||
Mortgage-backed securities: GSE residential | |||||
Available-for-sale: [Abstract] | |||||
Amortized Cost | 209,835 | 209,835 | 193,814 | ||
Gross Unrealized Gains | 1,700 | 1,700 | 2,548 | ||
Gross Unrealized (Losses) | (1,843) | (1,843) | (961) | ||
Fair Value | 209,692 | 209,692 | 195,401 | ||
Trust preferred securities | |||||
Available-for-sale: [Abstract] | |||||
Amortized Cost | 3,201 | 3,201 | 3,300 | ||
Gross Unrealized Gains | 0 | 0 | 0 | ||
Gross Unrealized (Losses) | (1,060) | (1,060) | (2,936) | ||
Fair Value | 2,141 | $ 2,141 | 364 | ||
Number of trust preferred securities | securities | 1 | ||||
Trust preferred securities | Maximum [Member] | |||||
Available-for-sale: [Abstract] | |||||
Maturities of Debt Securities | |||||
Other securities | |||||
Available-for-sale: [Abstract] | |||||
Amortized Cost | 4,035 | $ 4,035 | 4,036 | ||
Gross Unrealized Gains | 31 | 31 | 26 | ||
Gross Unrealized (Losses) | (4) | (4) | (12) | ||
Fair Value | $ 4,062 | $ 4,062 | $ 4,050 |
Investment Securities, Part II
Investment Securities, Part II (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015USD ($)securities | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)securities | |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
One year or less | $ 86,122 | ||
After 1 through 5 years | 197,503 | ||
After 5 through 10 years | 135,153 | ||
After ten years | 3,145 | ||
Fair Value | $ 421,923 | $ 377,856 | |
Available-for-sale, Weighted Average Yield, Maturities Year One (in hundredths) | 1.68% | ||
Available-for-sale , Weighted Average Yield, Maturities After 1 through 5 Years (in hundredths) | 2.36% | ||
Available-for-sale, Weighted Average Yield, Maturities After 5 through 10 Years (in hundredths) | 2.69% | ||
Available-for-sale , Weighted Average Yield, Maturities After 10 Years (in hundredths) | 1.65% | ||
Available-for-sale , Weighted Average Yield, Maturities (in hundredths) | 2.32% | ||
Available-for-sale, Full Tax-equivalent Yield, Maturities Year One (in hundredths) | 1.84% | ||
Available-for-sale, Full Tax-equivalent Yield, Maturities After 1 through 5 Years (in hundredths) | 2.85% | ||
Available-for-sale, Full Tax-equivalent Yield, Maturities After 5 through 10 years (in hundredths) | 3.30% | ||
Available-for-sale, Full Tax-equivalent Yield, Maturities After Ten Years (in hundredths) | 2.18% | ||
Available-for-sale, Full Tax-equivalent Yield, Maturities (in hundredths) | 2.78% | ||
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount [Abstract] | |||
Held-to-maturity Securities | $ 43,973 | 53,650 | |
Held To Maturity Weighted Average Yield Maturities Year One | 2.30% | ||
Held To Maturity Weighted Average Yield Maturities After 1 Through 5 Years | 2.10% | ||
Held To Maturity Weighted Average Yield Maturities After 5 Through 10 Years | 2.33% | ||
Held To Maturity Weighted Average Yield Maturities After 10 Years | 0.00% | ||
Held To Maturity Weighted Average Yield Maturities | 2.31% | ||
Held To Maturity Tax Equivalent Yield Maturities Year One | 2.30% | ||
Held To Maturity Tax Equivalent Yield Maturities After 1 Through 5 Years | 2.10% | ||
Held To Maturity Tax Equivalent Yield Maturities After 5 Through 10 Years | 2.33% | ||
Held To Maturity Tax Equivalent Yield Maturities After 10 Years | 0.00% | ||
Held To Maturity Tax Equivalent Yield Maturities | 2.31% | ||
Tax rate used to calculate tax-equivalent yields (in hundredths) | 35.00% | ||
Percentage investment book value exceeds total stockholders' equity (in hundredths) | 10.00% | ||
Investment Securities Pledged as Collateral | $ 295,000 | 330,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, Fair Value | 173,217 | 30,440 | |
Less than 12 months, Unrealized Losses | (1,760) | (224) | |
12 months or longer, Fair Value | 78,477 | 119,022 | |
12 months or longer, Unrealized losses | (2,437) | (5,156) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 251,694 | 149,462 | |
Total Unrealized Losses | $ 4,197 | 5,380 | |
Details of Trust Preferred Securities [Abstract] | |||
Coupon Rate of Trust Preferred Security | floating rate coupon of 3-month LIBOR plus 90 basis points | ||
Number of Ratios Utilized in OTTI Credit Model | 29 | ||
OTTI Cash Flow Initial Default Rate | 2.00% | ||
Period For Initial Default Rate Used In OTTI Analysis | two years | ||
Default Rate Applied For Remainder Of OTTI Analysis | 36 basis points | ||
Recovery Rate Used In OTTI Cash Flow Analysis | 10.00% | ||
Credit losses on trust preferred securities held [Abstract] | |||
Beginning of period | $ 1,111 | $ 1,111 | |
Additions related to OTTI losses not previously recognized | 0 | 0 | |
Reductions due to sales / (recoveries) | 0 | 0 | |
Reductions due to change in intent or likelihood of sale | 0 | 0 | |
Additions related to increases in previously recognized OTTI losses | 0 | 0 | |
Reductions due to increases in expected cash flows | 0 | 0 | |
End of period | 1,111 | $ 1,111 | |
PreTSL XXVIII [Member] | |||
Details of Trust Preferred Securities [Abstract] | |||
Book Value | 3,201 | ||
Market Value | 2,141 | ||
Unrealized Gains (Losses) | (1,060) | ||
Other-than- temporary Impairment Recorded To-date | (1,111) | ||
U.S. Treasury securities and obligations of U.S. government corporations & agencies | |||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
One year or less | 80,168 | ||
After 1 through 5 years | 41,566 | ||
After 5 through 10 years | 0 | ||
After ten years | 0 | ||
Fair Value | 121,734 | 99,957 | |
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount [Abstract] | |||
Held-to-maturity Securities, Debt Maturities, within One Year, Net Carrying Amount | 24,543 | ||
Held-to-maturity Securities, Debt Maturities, after One Through Five Years, Net Carrying Amount | 9,714 | ||
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount | 9,716 | ||
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount | 0 | ||
Held-to-maturity Securities | 43,973 | 53,650 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, Fair Value | 31,099 | 7,289 | |
Less than 12 months, Unrealized Losses | (150) | (46) | |
12 months or longer, Fair Value | 53,504 | 75,030 | |
12 months or longer, Unrealized losses | (590) | (1,312) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 84,603 | 82,319 | |
Total Unrealized Losses | $ 740 | $ 1,358 | |
Number of securities in Unrealized Loss Positions | securities | 11 | 16 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 0 | $ 4,853 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss | 0 | (12) | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value | 0 | 4,853 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss | 0 | (12) | |
Obligations of states and political subdivisions | |||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
One year or less | 4,928 | ||
After 1 through 5 years | 41,476 | ||
After 5 through 10 years | 36,950 | ||
After ten years | 940 | ||
Fair Value | 84,294 | 78,084 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, Fair Value | 25,006 | 3,586 | |
Less than 12 months, Unrealized Losses | (461) | (19) | |
12 months or longer, Fair Value | 1,153 | 4,416 | |
12 months or longer, Unrealized losses | (89) | (94) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 26,159 | 8,002 | |
Total Unrealized Losses | $ 550 | $ 113 | |
Number of securities in Unrealized Loss Positions | securities | 2 | 10 | |
Mortgage-backed securities: GSE residential | |||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
One year or less | $ 1,026 | ||
After 1 through 5 years | 110,463 | ||
After 5 through 10 years | 98,203 | ||
After ten years | 0 | ||
Fair Value | 209,692 | $ 195,401 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, Fair Value | 115,116 | 19,565 | |
Less than 12 months, Unrealized Losses | (1,145) | (159) | |
12 months or longer, Fair Value | 21,679 | 37,224 | |
12 months or longer, Unrealized losses | (698) | (802) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 136,795 | 56,789 | |
Total Unrealized Losses | $ 1,843 | $ 961 | |
Number of securities in Unrealized Loss Positions | securities | 7 | 11 | |
Trust preferred securities | |||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
One year or less | $ 0 | ||
After 1 through 5 years | 0 | ||
After 5 through 10 years | 0 | ||
After ten years | 2,141 | ||
Fair Value | 2,141 | $ 364 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, Fair Value | 0 | 0 | |
Less than 12 months, Unrealized Losses | 0 | 0 | |
12 months or longer, Fair Value | 2,141 | 364 | |
12 months or longer, Unrealized losses | (1,060) | (2,936) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,141 | 364 | |
Total Unrealized Losses | $ 1,060 | $ 2,936 | |
Number of securities in Unrealized Loss Positions | securities | 1 | 1 | |
Other securities | |||
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | |||
One year or less | $ 0 | ||
After 1 through 5 years | 3,998 | ||
After 5 through 10 years | 0 | ||
After ten years | 64 | ||
Fair Value | 4,062 | $ 4,050 | |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | |||
Less than 12 months, Fair Value | 1,996 | 0 | |
Less than 12 months, Unrealized Losses | (4) | 0 | |
12 months or longer, Fair Value | 0 | 1,988 | |
12 months or longer, Unrealized losses | 0 | (12) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,996 | 1,988 | |
Total Unrealized Losses | $ 4 | $ 12 |
Loans and Allowance for Loan 27
Loans and Allowance for Loan Losses (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)alternative | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Provision for Loan and Lease Losses | $ 143,000 | $ 128,000 | $ 408,000 | $ 451,000 | ||||
Financing Receivable, Allowance for Credit Losses, Period Increase (Decrease) | 143,000 | 128,000 | 408,000 | 451,000 | $ 629,000 | |||
Gross loans | $ 1,056,657,000 | $ 1,060,685,000 | ||||||
Less [Abstract] | ||||||||
Net deferred loan fees, premiums and discounts | 130,000 | 237,000 | ||||||
Allowance for loan losses | 14,106,000 | 13,603,000 | 13,682,000 | 13,249,000 | 13,249,000 | 13,931,000 | 13,682,000 | $ 13,681,000 |
Net loans | 1,042,596,000 | 1,046,766,000 | ||||||
Loans held for sale | 2,576,000 | 1,958,000 | ||||||
Impaired Loans [Abstract] | ||||||||
Minimum value of loans individually measured for impairment | $ 250,000 | |||||||
Number of alternatives for measuring impaired loans receivable | alternative | 3 | |||||||
Adversely Classified Loans [Abstract] | ||||||||
Minimum balance of adversely classified loan in which a detailed analysis is performed | $ 250,000 | |||||||
Non-classified and Watch Loans [Abstract] | ||||||||
Time period used a a base for loss estimations | ||||||||
Allowance for Loan Losses [Abstract] | ||||||||
Balance, beginning of period | 14,106,000 | 13,603,000 | $ 13,682,000 | 13,249,000 | 13,249,000 | |||
Losses charged off | (381,000) | (102,000) | (471,000) | (182,000) | (537,000) | |||
Recoveries | 63,000 | 52,000 | 312,000 | 163,000 | 341,000 | |||
Balance, end of period | 13,931,000 | 13,681,000 | $ 13,931,000 | 13,681,000 | 13,682,000 | |||
Ending Balance [Abstract] | ||||||||
Individually evaluated for impairment | 537,000 | 263,000 | 322,000 | |||||
Collectively evaluated for impairment | 13,394,000 | 13,419,000 | 13,359,000 | |||||
Loans [Abstract] | ||||||||
Ending balance | 1,059,103,000 | 1,062,406,000 | 1,022,251,000 | |||||
Ending Balance [Abstract] | ||||||||
Individually evaluated for impairment | 1,766,000 | 3,301,000 | 3,648,000 | |||||
Collectively evaluated for impairment | 1,057,337,000 | 1,059,105,000 | 1,018,603,000 | |||||
Construction and land development | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 27,420,000 | 21,627,000 | ||||||
Agricultural real estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 112,270,000 | 110,158,000 | ||||||
1-4 Family residential properties | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 170,697,000 | 179,886,000 | ||||||
Ending Balance [Abstract] | ||||||||
Period When Loans are Charged-down | ||||||||
Multifamily residential properties | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 52,422,000 | 53,129,000 | ||||||
Commercial real estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 372,213,000 | 380,173,000 | ||||||
Loans Receivable Additional Information [Abstract] | ||||||||
Debt coverage ratio | 1.20x | |||||||
Amortization period of loans | ||||||||
Commercial real estate | Minimum [Member] | ||||||||
Loans Receivable Additional Information [Abstract] | ||||||||
Maximum Loan-to-value Ratio (in hundredths) | 65.00% | |||||||
Commercial real estate | Maximum [Member] | ||||||||
Loans Receivable Additional Information [Abstract] | ||||||||
Maximum Loan-to-value Ratio (in hundredths) | 80.00% | |||||||
Loans secured by real estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 735,022,000 | 744,973,000 | ||||||
Agricultural loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 59,641,000 | 68,225,000 | ||||||
Commercial and industrial loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 238,981,000 | 223,633,000 | ||||||
Loans Receivable Additional Information [Abstract] | ||||||||
Maximum Loan-to-value Ratio (in hundredths) | 80.00% | |||||||
Amortization period of loans | ||||||||
Loans Receivable, Time Period | ||||||||
Consumer loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Losses, Period Increase (Decrease) | 258,000 | 27,000 | $ 262,000 | 36,000 | 167,000 | |||
Gross loans | 14,560,000 | 15,118,000 | ||||||
Less [Abstract] | ||||||||
Allowance for loan losses | 386,000 | 372,000 | 386,000 | 377,000 | 377,000 | 382,000 | 386,000 | 368,000 |
Allowance for Loan Losses [Abstract] | ||||||||
Balance, beginning of period | 386,000 | 372,000 | 386,000 | 377,000 | 377,000 | |||
Losses charged off | (304,000) | (60,000) | (360,000) | (105,000) | (311,000) | |||
Recoveries | 42,000 | 29,000 | 94,000 | 60,000 | 153,000 | |||
Balance, end of period | 382,000 | 368,000 | 382,000 | 368,000 | 386,000 | |||
Ending Balance [Abstract] | ||||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||||
Collectively evaluated for impairment | 382,000 | 386,000 | 368,000 | |||||
Loans [Abstract] | ||||||||
Ending balance | 15,451,000 | 15,102,000 | 14,304,000 | |||||
Ending Balance [Abstract] | ||||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||||
Collectively evaluated for impairment | 15,451,000 | 15,102,000 | 14,304,000 | |||||
All other loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 8,453,000 | 8,736,000 | ||||||
Agricultural and Farm Loans [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 172,000,000 | 178,500,000 | ||||||
Less [Abstract] | ||||||||
Decrease in loans receivable | $ (6,500,000) | |||||||
Loans Receivable Additional Information [Abstract] | ||||||||
Maximum Loan-to-value Ratio (in hundredths) | 65.00% | |||||||
Amortization period of loans | ||||||||
Loans Receivable, Time Period | ||||||||
Other Grain Farming [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 144,700,000 | 155,100,000 | ||||||
Less [Abstract] | ||||||||
Decrease in loans receivable | $ (10,400,000) | |||||||
Motels and Hotels Loans [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 55,800,000 | |||||||
Non-residential Buildings [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 105,200,000 | |||||||
Residential Buildings [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gross loans | 62,500,000 | |||||||
Unsecured Open-end Loans [Member] | ||||||||
Ending Balance [Abstract] | ||||||||
Period When Loans are Charged-down | ||||||||
Other Secured Loans [Member] | ||||||||
Ending Balance [Abstract] | ||||||||
Period When Loans are Charged-down | ||||||||
Commercial/ Commercial Real Estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Losses, Period Increase (Decrease) | (123,000) | 200,000 | $ 235,000 | 75,000 | 192,000 | |||
Less [Abstract] | ||||||||
Allowance for loan losses | 11,459,000 | 10,581,000 | 10,914,000 | 10,646,000 | 10,646,000 | 11,294,000 | 10,914,000 | 10,771,000 |
Allowance for Loan Losses [Abstract] | ||||||||
Balance, beginning of period | 11,459,000 | 10,581,000 | 10,914,000 | 10,646,000 | 10,646,000 | |||
Losses charged off | (62,000) | (28,000) | (71,000) | (32,000) | (86,000) | |||
Recoveries | 20,000 | 18,000 | 216,000 | 82,000 | 162,000 | |||
Balance, end of period | 11,294,000 | 10,771,000 | 11,294,000 | 10,771,000 | 10,914,000 | |||
Ending Balance [Abstract] | ||||||||
Individually evaluated for impairment | 537,000 | 263,000 | 322,000 | |||||
Collectively evaluated for impairment | 10,757,000 | 10,651,000 | 10,449,000 | |||||
Loans [Abstract] | ||||||||
Ending balance | 696,596,000 | 684,552,000 | 657,352,000 | |||||
Ending Balance [Abstract] | ||||||||
Individually evaluated for impairment | 1,766,000 | 3,301,000 | 3,648,000 | |||||
Collectively evaluated for impairment | 694,830,000 | 681,251,000 | 653,704,000 | |||||
Agricultural/ Agricultural Real Estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Losses, Period Increase (Decrease) | 20,000 | 21,000 | (49,000) | (10,000) | 825,000 | |||
Less [Abstract] | ||||||||
Allowance for loan losses | 1,291,000 | 503,000 | 1,360,000 | 533,000 | 533,000 | 1,312,000 | 1,360,000 | 524,000 |
Allowance for Loan Losses [Abstract] | ||||||||
Balance, beginning of period | 1,291,000 | 503,000 | 1,360,000 | 533,000 | 533,000 | |||
Losses charged off | 0 | 0 | 0 | 0 | 0 | |||
Recoveries | 1,000 | 0 | 1,000 | 1,000 | 2,000 | |||
Balance, end of period | 1,312,000 | 524,000 | 1,312,000 | 524,000 | 1,360,000 | |||
Ending Balance [Abstract] | ||||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||||
Collectively evaluated for impairment | 1,312,000 | 1,360,000 | 524,000 | |||||
Loans [Abstract] | ||||||||
Ending balance | 171,376,000 | 178,091,000 | 164,841,000 | |||||
Ending Balance [Abstract] | ||||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||||
Collectively evaluated for impairment | 171,376,000 | 178,091,000 | 164,841,000 | |||||
Residential Real Estate | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Losses, Period Increase (Decrease) | (7,000) | 6,000 | (20,000) | 11,000 | 135,000 | |||
Less [Abstract] | ||||||||
Allowance for loan losses | 753,000 | 760,000 | $ 790,000 | 771,000 | 771,000 | 731,000 | 790,000 | 757,000 |
Loans Receivable Additional Information [Abstract] | ||||||||
Maximum Loan-to-value Ratio (in hundredths) | 80.00% | |||||||
Amortization period of loans | ||||||||
Balloon period | ||||||||
Allowance for Loan Losses [Abstract] | ||||||||
Balance, beginning of period | 753,000 | 760,000 | $ 790,000 | 771,000 | 771,000 | |||
Losses charged off | (15,000) | (14,000) | (40,000) | (45,000) | (140,000) | |||
Recoveries | 0 | 5,000 | 1,000 | 20,000 | 24,000 | |||
Balance, end of period | 731,000 | 757,000 | 731,000 | 757,000 | 790,000 | |||
Ending Balance [Abstract] | ||||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||||
Collectively evaluated for impairment | 731,000 | 790,000 | 757,000 | |||||
Loans [Abstract] | ||||||||
Ending balance | 175,680,000 | 184,661,000 | 185,754,000 | |||||
Ending Balance [Abstract] | ||||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||||
Collectively evaluated for impairment | 175,680,000 | 184,661,000 | 185,754,000 | |||||
Unallocated | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Financing Receivable, Allowance for Credit Losses, Period Increase (Decrease) | (5,000) | (126,000) | (20,000) | 339,000 | (690,000) | |||
Less [Abstract] | ||||||||
Allowance for loan losses | 217,000 | 1,387,000 | 232,000 | 922,000 | 922,000 | 212,000 | 232,000 | 1,261,000 |
Allowance for Loan Losses [Abstract] | ||||||||
Balance, beginning of period | 217,000 | 1,387,000 | 232,000 | 922,000 | 922,000 | |||
Losses charged off | 0 | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | 0 | |||
Balance, end of period | $ 212,000 | $ 1,261,000 | $ 212,000 | $ 1,261,000 | $ 232,000 | |||
Ending Balance [Abstract] | ||||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||||
Collectively evaluated for impairment | 212,000 | 232,000 | 1,261,000 | |||||
Loans [Abstract] | ||||||||
Ending balance | 0 | 0 | 0 | |||||
Ending Balance [Abstract] | ||||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||||
Collectively evaluated for impairment | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan 28
Loans and Allowance for Loan Losses, Part II (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Minimum Balance Of Loans For Which Credit Quality Analysis Is Performed | $ 100,000 | $ 100,000 | |||
Loans Receivable Aging Analysis [Abstract] | |||||
30-59 days Past Due | 1,144,000 | 1,144,000 | $ 1,133,000 | ||
60-89 days Past Due | 355,000 | 355,000 | 321,000 | ||
90 Days or More Past Due | 727,000 | 727,000 | 1,433,000 | ||
Total Past Due | 2,226,000 | 2,226,000 | 2,887,000 | ||
Current | 1,056,877,000 | 1,056,877,000 | 1,059,519,000 | ||
Total Loans Receivable | 1,059,103,000 | 1,059,103,000 | 1,062,406,000 | ||
Total Loans 90 days & Accruing | 0 | $ 0 | 0 | ||
Number of days past due when interest is not accrued | |||||
Period of satisfactory performance before returning to accrual status | |||||
Loans with a specific allowance [Abstract] | |||||
Recorded Balance | 1,766,000 | $ 1,766,000 | 1,407,000 | ||
Unpaid Principal Balance | 2,537,000 | 2,537,000 | 4,261,000 | ||
Specific Allowance | 537,000 | 537,000 | 263,000 | ||
Loans without a specific allowance [Abstract] | |||||
Recorded Balance | 1,303,000 | 1,303,000 | 3,133,000 | ||
Unpaid Principal Balance | 1,814,000 | 1,814,000 | 7,902,000 | ||
Total Loans [Abstract] | |||||
Recorded Balance | 3,069,000 | 3,069,000 | 4,540,000 | ||
Unpaid Principal Balance | 4,351,000 | 4,351,000 | 12,163,000 | ||
Average recorded investment and interest income recognized [Abstract] | |||||
Average investment in impaired loans | 3,097,000 | $ 5,142,000 | 3,137,000 | $ 5,196,000 | |
Interest income recognized | 6,000 | 5,000 | 10,000 | 8,000 | |
Balances of Nonaccrual Loans [Abstract] | |||||
Recorded balance of nonaccrual loans | 2,468,000 | 2,468,000 | 4,105,000 | ||
Interest Lost on Nonaccrual Loans | 39,000 | $ 32,000 | |||
Troubled Debt Restructuring [Abstract] | |||||
Troubled Debt Restructurings Balance | 1,838,000 | 1,838,000 | 2,860,000 | ||
Troubled Debt Restructuring, Allowance | 508,000 | 508,000 | 234,000 | ||
Financing Receivable Modifications Performing Recorded Investment | 601,000 | $ 601,000 | 435,000 | ||
Recorded Balance of Troubled Debt Restructurings [Abstract] | |||||
Financing Receivables, Modifications during Period, Number | 10 | 3 | |||
Financing Receivables, Modifications during Period, Balance | $ 768,000 | $ 708,000 | |||
Subsequent Default, Number of Days Past Due | |||||
Pass | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 1,022,453,000 | $ 1,022,453,000 | 1,026,901,000 | ||
Watch | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 29,415,000 | 29,415,000 | 25,696,000 | ||
Substandard | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 7,235,000 | 7,235,000 | 9,809,000 | ||
Doubtful | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 0 | ||
Construction and land development | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
30-59 days Past Due | 0 | 0 | 297,000 | ||
60-89 days Past Due | 0 | 0 | 25,000 | ||
90 Days or More Past Due | 0 | 0 | 0 | ||
Total Past Due | 0 | 0 | 322,000 | ||
Current | 27,420,000 | 27,420,000 | 21,305,000 | ||
Total Loans Receivable | 27,420,000 | 27,420,000 | 21,627,000 | ||
Total Loans 90 days & Accruing | 0 | 0 | 0 | ||
Loans with a specific allowance [Abstract] | |||||
Recorded Balance | 154,000 | 154,000 | 785,000 | ||
Unpaid Principal Balance | 719,000 | 719,000 | 2,960,000 | ||
Specific Allowance | 26,000 | 26,000 | 43,000 | ||
Loans without a specific allowance [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Total Loans [Abstract] | |||||
Recorded Balance | 154,000 | 154,000 | 785,000 | ||
Unpaid Principal Balance | 719,000 | 719,000 | 2,960,000 | ||
Average recorded investment and interest income recognized [Abstract] | |||||
Average investment in impaired loans | 154,000 | 1,112,000 | 154,000 | 1,126,000 | |
Interest income recognized | 0 | 0 | 0 | 0 | |
Balances of Nonaccrual Loans [Abstract] | |||||
Recorded balance of nonaccrual loans | 154,000 | 154,000 | 785,000 | ||
Troubled Debt Restructuring [Abstract] | |||||
Troubled Debt Restructurings Balance | 153,000 | 153,000 | 785,000 | ||
Construction and land development | Pass | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 27,266,000 | 27,266,000 | 20,842,000 | ||
Construction and land development | Watch | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 0 | ||
Construction and land development | Substandard | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 154,000 | 154,000 | 785,000 | ||
Construction and land development | Doubtful | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 0 | ||
Agricultural real estate | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
30-59 days Past Due | 147,000 | 147,000 | 0 | ||
60-89 days Past Due | 0 | 0 | 0 | ||
90 Days or More Past Due | 0 | 0 | 0 | ||
Total Past Due | 147,000 | 147,000 | 0 | ||
Current | 112,155,000 | 112,155,000 | 110,193,000 | ||
Total Loans Receivable | 112,302,000 | 112,302,000 | 110,193,000 | ||
Total Loans 90 days & Accruing | 0 | 0 | 0 | ||
Loans with a specific allowance [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Specific Allowance | 0 | 0 | 0 | ||
Loans without a specific allowance [Abstract] | |||||
Recorded Balance | 93,000 | 93,000 | 73,000 | ||
Unpaid Principal Balance | 98,000 | 98,000 | 235,000 | ||
Total Loans [Abstract] | |||||
Recorded Balance | 93,000 | 93,000 | 73,000 | ||
Unpaid Principal Balance | 98,000 | 98,000 | 235,000 | ||
Average recorded investment and interest income recognized [Abstract] | |||||
Average investment in impaired loans | 93,000 | 36,000 | 94,000 | 36,000 | |
Interest income recognized | 1,000 | 0 | 2,000 | 0 | |
Loans Receivable, Modifications, Still Accruing Interest | 67,000 | 67,000 | |||
Balances of Nonaccrual Loans [Abstract] | |||||
Recorded balance of nonaccrual loans | 26,000 | 26,000 | 29,000 | ||
Troubled Debt Restructuring [Abstract] | |||||
Troubled Debt Restructurings Balance | 67,000 | 67,000 | 44,000 | ||
Financing Receivable Modifications Performing Recorded Investment | 67,000 | $ 67,000 | 44,000 | ||
Recorded Balance of Troubled Debt Restructurings [Abstract] | |||||
Financing Receivables, Modifications during Period, Number | 1 | ||||
Financing Receivables, Modifications during Period, Balance | $ 23,000 | ||||
Agricultural real estate | Pass | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 109,463,000 | 109,463,000 | 107,976,000 | ||
Agricultural real estate | Watch | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 1,767,000 | 1,767,000 | 1,036,000 | ||
Agricultural real estate | Substandard | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 1,072,000 | 1,072,000 | 1,181,000 | ||
Agricultural real estate | Doubtful | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 0 | ||
1-4 Family residential properties | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
30-59 days Past Due | 398,000 | 398,000 | 201,000 | ||
60-89 days Past Due | 176,000 | 176,000 | 224,000 | ||
90 Days or More Past Due | 182,000 | 182,000 | 385,000 | ||
Total Past Due | 756,000 | 756,000 | 810,000 | ||
Current | 172,596,000 | 172,596,000 | 181,111,000 | ||
Total Loans Receivable | 173,352,000 | 173,352,000 | 181,921,000 | ||
Total Loans 90 days & Accruing | 0 | 0 | 0 | ||
Loans with a specific allowance [Abstract] | |||||
Recorded Balance | 416,000 | 416,000 | 67,000 | ||
Unpaid Principal Balance | 416,000 | 416,000 | 134,000 | ||
Specific Allowance | 0 | 0 | 0 | ||
Loans without a specific allowance [Abstract] | |||||
Recorded Balance | 734,000 | 734,000 | 1,156,000 | ||
Unpaid Principal Balance | 1,073,000 | 1,073,000 | 2,866,000 | ||
Total Loans [Abstract] | |||||
Recorded Balance | 1,150,000 | 1,150,000 | 1,223,000 | ||
Unpaid Principal Balance | 1,489,000 | 1,489,000 | 3,000,000 | ||
Average recorded investment and interest income recognized [Abstract] | |||||
Average investment in impaired loans | 1,163,000 | 1,058,000 | 1,188,000 | 1,067,000 | |
Interest income recognized | 2,000 | 4,000 | 3,000 | 6,000 | |
Loans Receivable, Modifications, Still Accruing Interest | 342,000 | 305,000 | 342,000 | $ 305,000 | |
Balances of Nonaccrual Loans [Abstract] | |||||
Recorded balance of nonaccrual loans | 808,000 | 808,000 | 878,000 | ||
Troubled Debt Restructuring [Abstract] | |||||
Troubled Debt Restructurings Balance | 481,000 | 481,000 | 503,000 | ||
Financing Receivable Modifications Performing Recorded Investment | 342,000 | $ 342,000 | 345,000 | ||
Recorded Balance of Troubled Debt Restructurings [Abstract] | |||||
Financing Receivables, Modifications during Period, Number | 4 | 2 | |||
Financing Receivables, Modifications during Period, Balance | $ 79,000 | $ 207,000 | |||
1-4 Family residential properties | Pass | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 169,911,000 | 169,911,000 | 177,764,000 | ||
1-4 Family residential properties | Watch | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 925,000 | 925,000 | 1,187,000 | ||
1-4 Family residential properties | Substandard | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 2,516,000 | 2,516,000 | 2,970,000 | ||
1-4 Family residential properties | Doubtful | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 0 | ||
Multifamily residential properties | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
30-59 days Past Due | 0 | 0 | 0 | ||
60-89 days Past Due | 0 | 0 | 0 | ||
90 Days or More Past Due | 0 | 0 | 0 | ||
Total Past Due | 0 | 0 | 0 | ||
Current | 52,422,000 | 52,422,000 | 53,129,000 | ||
Total Loans Receivable | 52,422,000 | 52,422,000 | 53,129,000 | ||
Total Loans 90 days & Accruing | 0 | 0 | 0 | ||
Loans with a specific allowance [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Specific Allowance | 0 | 0 | 0 | ||
Loans without a specific allowance [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Total Loans [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Multifamily residential properties | Pass | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 51,842,000 | 51,842,000 | 52,793,000 | ||
Multifamily residential properties | Watch | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 249,000 | 249,000 | 0 | ||
Multifamily residential properties | Substandard | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 331,000 | 331,000 | 336,000 | ||
Multifamily residential properties | Doubtful | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 0 | ||
Commercial real estate | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
30-59 days Past Due | 3,000 | 3,000 | 60,000 | ||
60-89 days Past Due | 126,000 | 126,000 | 32,000 | ||
90 Days or More Past Due | 395,000 | 395,000 | 945,000 | ||
Total Past Due | 524,000 | 524,000 | 1,037,000 | ||
Current | 371,228,000 | 371,228,000 | 378,567,000 | ||
Total Loans Receivable | 371,752,000 | 371,752,000 | 379,604,000 | ||
Total Loans 90 days & Accruing | 0 | 0 | 0 | ||
Loans with a specific allowance [Abstract] | |||||
Recorded Balance | 536,000 | 536,000 | 472,000 | ||
Unpaid Principal Balance | 607,000 | 607,000 | 986,000 | ||
Specific Allowance | 29,000 | 29,000 | 136,000 | ||
Loans without a specific allowance [Abstract] | |||||
Recorded Balance | 116,000 | 116,000 | 1,640,000 | ||
Unpaid Principal Balance | 117,000 | 117,000 | 3,808,000 | ||
Total Loans [Abstract] | |||||
Recorded Balance | 652,000 | 652,000 | 2,112,000 | ||
Unpaid Principal Balance | 724,000 | 724,000 | 4,794,000 | ||
Average recorded investment and interest income recognized [Abstract] | |||||
Average investment in impaired loans | 655,000 | 2,293,000 | 659,000 | 2,303,000 | |
Interest income recognized | 1,000 | 1,000 | 1,000 | 1,000 | |
Loans Receivable, Modifications, Still Accruing Interest | 36,000 | 39,000 | 36,000 | $ 39,000 | |
Balances of Nonaccrual Loans [Abstract] | |||||
Recorded balance of nonaccrual loans | 616,000 | 616,000 | 2,074,000 | ||
Troubled Debt Restructuring [Abstract] | |||||
Troubled Debt Restructurings Balance | 256,000 | 256,000 | 1,283,000 | ||
Financing Receivable Modifications Performing Recorded Investment | 36,000 | $ 36,000 | 37,000 | ||
Recorded Balance of Troubled Debt Restructurings [Abstract] | |||||
Financing Receivables, Modifications during Period, Number | 0 | 1 | |||
Financing Receivables, Modifications during Period, Balance | $ 0 | $ 501,000 | |||
Commercial real estate | Pass | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 349,417,000 | 349,417,000 | 357,873,000 | ||
Commercial real estate | Watch | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 21,456,000 | 21,456,000 | 18,817,000 | ||
Commercial real estate | Substandard | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 879,000 | 879,000 | 2,914,000 | ||
Commercial real estate | Doubtful | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 0 | ||
Agricultural loans | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
30-59 days Past Due | 0 | 0 | 16,000 | ||
60-89 days Past Due | 0 | 0 | 20,000 | ||
90 Days or More Past Due | 0 | 0 | 0 | ||
Total Past Due | 0 | 0 | 36,000 | ||
Current | 59,719,000 | 59,719,000 | 68,262,000 | ||
Total Loans Receivable | 59,719,000 | 59,719,000 | 68,298,000 | ||
Total Loans 90 days & Accruing | 0 | 0 | 0 | ||
Loans with a specific allowance [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Specific Allowance | 0 | 0 | 0 | ||
Loans without a specific allowance [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Total Loans [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Balances of Nonaccrual Loans [Abstract] | |||||
Recorded balance of nonaccrual loans | 0 | 0 | 0 | ||
Agricultural loans | Pass | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 58,798,000 | 58,798,000 | 67,619,000 | ||
Agricultural loans | Watch | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 228,000 | 228,000 | 0 | ||
Agricultural loans | Substandard | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 693,000 | 693,000 | 679,000 | ||
Agricultural loans | Doubtful | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 0 | ||
Commercial and industrial loans | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
30-59 days Past Due | 559,000 | 559,000 | 228,000 | ||
60-89 days Past Due | 35,000 | 35,000 | 10,000 | ||
90 Days or More Past Due | 145,000 | 145,000 | 98,000 | ||
Total Past Due | 739,000 | 739,000 | 336,000 | ||
Current | 238,384,000 | 238,384,000 | 223,444,000 | ||
Total Loans Receivable | 239,123,000 | 239,123,000 | 223,780,000 | ||
Total Loans 90 days & Accruing | 0 | 0 | 0 | ||
Loans with a specific allowance [Abstract] | |||||
Recorded Balance | 252,000 | 252,000 | 83,000 | ||
Unpaid Principal Balance | 387,000 | 387,000 | 181,000 | ||
Specific Allowance | 103,000 | 103,000 | 84,000 | ||
Loans without a specific allowance [Abstract] | |||||
Recorded Balance | 321,000 | 321,000 | 249,000 | ||
Unpaid Principal Balance | 478,000 | 478,000 | 933,000 | ||
Total Loans [Abstract] | |||||
Recorded Balance | 573,000 | 573,000 | 332,000 | ||
Unpaid Principal Balance | 865,000 | 865,000 | 1,114,000 | ||
Average recorded investment and interest income recognized [Abstract] | |||||
Average investment in impaired loans | 584,000 | 608,000 | 594,000 | 627,000 | |
Interest income recognized | 1,000 | 0 | 3,000 | $ 0 | |
Balances of Nonaccrual Loans [Abstract] | |||||
Recorded balance of nonaccrual loans | 456,000 | 456,000 | 332,000 | ||
Troubled Debt Restructuring [Abstract] | |||||
Troubled Debt Restructurings Balance | 434,000 | 434,000 | 236,000 | ||
Financing Receivable Modifications Performing Recorded Investment | 117,000 | $ 117,000 | 0 | ||
Recorded Balance of Troubled Debt Restructurings [Abstract] | |||||
Financing Receivables, Modifications during Period, Number | 2 | 0 | |||
Financing Receivables, Modifications during Period, Balance | $ 227,000 | $ 0 | |||
Commercial and industrial loans | Pass | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 233,151,000 | 233,151,000 | 218,193,000 | ||
Commercial and industrial loans | Watch | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 4,790,000 | 4,790,000 | 4,647,000 | ||
Commercial and industrial loans | Substandard | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 1,182,000 | 1,182,000 | 940,000 | ||
Commercial and industrial loans | Doubtful | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 0 | ||
Consumer loans | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
30-59 days Past Due | 37,000 | 37,000 | 331,000 | ||
60-89 days Past Due | 18,000 | 18,000 | 10,000 | ||
90 Days or More Past Due | 5,000 | 5,000 | 5,000 | ||
Total Past Due | 60,000 | 60,000 | 346,000 | ||
Current | 14,500,000 | 14,500,000 | 14,772,000 | ||
Total Loans Receivable | 14,560,000 | 14,560,000 | 15,118,000 | ||
Total Loans 90 days & Accruing | 0 | 0 | 0 | ||
Loans with a specific allowance [Abstract] | |||||
Recorded Balance | 408,000 | 408,000 | 0 | ||
Unpaid Principal Balance | 408,000 | 408,000 | 0 | ||
Specific Allowance | 379,000 | 379,000 | 0 | ||
Loans without a specific allowance [Abstract] | |||||
Recorded Balance | 39,000 | 39,000 | 15,000 | ||
Unpaid Principal Balance | 48,000 | 48,000 | 60,000 | ||
Total Loans [Abstract] | |||||
Recorded Balance | 447,000 | 447,000 | 15,000 | ||
Unpaid Principal Balance | 456,000 | 456,000 | 60,000 | ||
Average recorded investment and interest income recognized [Abstract] | |||||
Average investment in impaired loans | 448,000 | 35,000 | 448,000 | 37,000 | |
Interest income recognized | 1,000 | 0 | 1,000 | 1,000 | |
Loans Receivable, Modifications, Still Accruing Interest | 39,000 | 20,000 | 39,000 | $ 20,000 | |
Balances of Nonaccrual Loans [Abstract] | |||||
Recorded balance of nonaccrual loans | 408,000 | 408,000 | 7,000 | ||
Troubled Debt Restructuring [Abstract] | |||||
Troubled Debt Restructurings Balance | 447,000 | 447,000 | 9,000 | ||
Financing Receivable Modifications Performing Recorded Investment | 39,000 | $ 39,000 | 9,000 | ||
Recorded Balance of Troubled Debt Restructurings [Abstract] | |||||
Financing Receivables, Modifications during Period, Number | 3 | 0 | |||
Financing Receivables, Modifications during Period, Balance | $ 439,000 | $ 0 | |||
Consumer loans | Pass | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 14,152,000 | 14,152,000 | 15,105,000 | ||
Consumer loans | Watch | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 9,000 | ||
Consumer loans | Substandard | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 408,000 | 408,000 | 4,000 | ||
Consumer loans | Doubtful | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 0 | ||
All other loans | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
30-59 days Past Due | 0 | 0 | 0 | ||
60-89 days Past Due | 0 | 0 | 0 | ||
90 Days or More Past Due | 0 | 0 | 0 | ||
Total Past Due | 0 | 0 | 0 | ||
Current | 8,453,000 | 8,453,000 | 8,736,000 | ||
Total Loans Receivable | 8,453,000 | 8,453,000 | 8,736,000 | ||
Total Loans 90 days & Accruing | 0 | 0 | 0 | ||
Loans with a specific allowance [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Specific Allowance | 0 | 0 | 0 | ||
Loans without a specific allowance [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Total Loans [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid Principal Balance | 0 | 0 | 0 | ||
All other loans | Pass | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 8,453,000 | 8,453,000 | 8,736,000 | ||
All other loans | Watch | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 0 | ||
All other loans | Substandard | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 0 | ||
All other loans | Doubtful | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
Total Loans Receivable | 0 | 0 | 0 | ||
Loans secured by real estate | |||||
Loans Receivable Aging Analysis [Abstract] | |||||
30-59 days Past Due | 548,000 | 548,000 | 558,000 | ||
60-89 days Past Due | 302,000 | 302,000 | 281,000 | ||
90 Days or More Past Due | 577,000 | 577,000 | 1,330,000 | ||
Total Past Due | 1,427,000 | 1,427,000 | 2,169,000 | ||
Current | 735,821,000 | 735,821,000 | 744,305,000 | ||
Total Loans Receivable | 737,248,000 | 737,248,000 | 746,474,000 | ||
Total Loans 90 days & Accruing | 0 | 0 | 0 | ||
Loans with a specific allowance [Abstract] | |||||
Recorded Balance | 1,106,000 | 1,106,000 | 1,324,000 | ||
Unpaid Principal Balance | 1,742,000 | 1,742,000 | 4,080,000 | ||
Specific Allowance | 55,000 | 55,000 | 179,000 | ||
Loans without a specific allowance [Abstract] | |||||
Recorded Balance | 943,000 | 943,000 | 2,869,000 | ||
Unpaid Principal Balance | 1,288,000 | 1,288,000 | 6,909,000 | ||
Total Loans [Abstract] | |||||
Recorded Balance | 2,049,000 | 2,049,000 | 4,193,000 | ||
Unpaid Principal Balance | 3,030,000 | 3,030,000 | 10,989,000 | ||
Average recorded investment and interest income recognized [Abstract] | |||||
Average investment in impaired loans | 2,065,000 | 4,499,000 | 2,095,000 | 4,532,000 | |
Interest income recognized | 4,000 | $ 5,000 | 6,000 | $ 7,000 | |
Balances of Nonaccrual Loans [Abstract] | |||||
Recorded balance of nonaccrual loans | 1,604,000 | 1,604,000 | 3,766,000 | ||
Troubled Debt Restructuring [Abstract] | |||||
Troubled Debt Restructurings Balance | 957,000 | 957,000 | 2,615,000 | ||
Financing Receivable Modifications Performing Recorded Investment | $ 445,000 | $ 445,000 | $ 426,000 | ||
Recorded Balance of Troubled Debt Restructurings [Abstract] | |||||
Financing Receivables, Modifications during Period, Number | 5 | 3 | |||
Financing Receivables, Modifications during Period, Balance | $ 102,000 | $ 708,000 |
Repurchase Agreements and Oth29
Repurchase Agreements and Other Borrowings (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Repurchase Agreements and Other Borrowings [Abstract] | ||
Securities Sold under Agreements to Repurchase | $ 117,468 | $ 121,869 |
Securities Sold under Agreements to Repurchase Increase (Decrease) | 4,400 | |
Federal Home Loan Bank Advances Short and Long Term, Increase (Decrease) | 5,000 | |
FHLB borrowings | 25,000 | 20,000 |
Disclosure of Repurchase Agreements [Abstract] | ||
Securities Sold under Agreements to Repurchase | 117,468 | 121,869 |
FHLB Advances [Abstract] | ||
FHLB borrowings | 25,000 | $ 20,000 |
FHLB Advance, 2-Year Maturity [Member] | ||
Repurchase Agreements and Other Borrowings [Abstract] | ||
FHLB borrowings | 5,000 | |
FHLB Advances [Abstract] | ||
FHLB borrowings | $ 5,000 | |
Federal Home Loan Bank Advances, Original Maturity Term | 2-year maturity | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 0.57% | |
FHLB advance, 10-Year Maturity [Member] | ||
Repurchase Agreements and Other Borrowings [Abstract] | ||
FHLB borrowings | $ 5,000 | |
FHLB Advances [Abstract] | ||
FHLB borrowings | $ 5,000 | |
Federal Home Loan Bank Advances, Original Maturity Term | 10-year maturity | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 4.58% | |
FHLB advance, 6-Year Maturity [Member] | ||
Repurchase Agreements and Other Borrowings [Abstract] | ||
FHLB borrowings | $ 5,000 | |
FHLB Advances [Abstract] | ||
FHLB borrowings | $ 5,000 | |
Federal Home Loan Bank Advances, Original Maturity Term | 6-year maturity | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 2.30% | |
FHLB Advance, 7 Year Maturity [Member] | ||
Repurchase Agreements and Other Borrowings [Abstract] | ||
FHLB borrowings | $ 5,000 | |
FHLB Advances [Abstract] | ||
FHLB borrowings | $ 5,000 | |
Federal Home Loan Bank Advances, Original Maturity Term | 7-year maturity | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 2.55% | |
FHLB advance, 8-Year Maturity [Member] | ||
Repurchase Agreements and Other Borrowings [Abstract] | ||
FHLB borrowings | $ 5,000 | |
FHLB Advances [Abstract] | ||
FHLB borrowings | $ 5,000 | |
Federal Home Loan Bank Advances, Original Maturity Term | 8-year maturity | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Interest Rate | 2.40% | |
U.S. Treasury securities and obligations of U.S. government corporations & agencies | ||
Repurchase Agreements and Other Borrowings [Abstract] | ||
Securities Sold under Agreements to Repurchase | $ 70,776 | |
Disclosure of Repurchase Agreements [Abstract] | ||
Securities Sold under Agreements to Repurchase | 70,776 | |
Mortgage-backed securities: GSE residential | ||
Repurchase Agreements and Other Borrowings [Abstract] | ||
Securities Sold under Agreements to Repurchase | 46,692 | |
Disclosure of Repurchase Agreements [Abstract] | ||
Securities Sold under Agreements to Repurchase | $ 46,692 |
Fair Value of Assets and Liab30
Fair Value of Assets and Liabilities (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | $ 421,923,000 | $ 377,856,000 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 369,000 | $ 191,000 | |
Transfers into Level 3 | 0 | ||
Transfers out of Level 3 | 0 | ||
Total gains or losses [Abstract] | |||
Included in net income | 0 | ||
Included in other comprehensive income | 381,000 | ||
Purchases, issuances, sales and settlements [Abstract] | |||
Purchases | 0 | ||
Issuances | 0 | ||
Sales | 0 | ||
Settlements | (203,000) | ||
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date | $ 0 | ||
Impaired Loans Receivable [Abstract] | |||
Carrying amount of loans with a specific allowance | 2,537,000 | 4,261,000 | |
Fair value of loans with a specific allowance | 1,766,000 | 1,407,000 | |
Specific Allowance | 537,000 | 263,000 | |
Fair Value, Measurements, Recurring [Member] | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 421,923,000 | 377,856,000 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 65,000 | 55,000 | |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 419,717,000 | 377,437,000 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 2,141,000 | 364,000 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Impaired Loans Receivable [Abstract] | |||
Carrying amount of loans with a specific allowance | 806,000 | ||
Fair value of loans with a specific allowance | 298,000 | ||
Specific Allowance | 508,000 | ||
U.S. Treasury securities and obligations of U.S. government corporations & agencies | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 121,734,000 | 99,957,000 | |
U.S. Treasury securities and obligations of U.S. government corporations & agencies | Fair Value, Measurements, Recurring [Member] | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 121,734,000 | 99,957,000 | |
U.S. Treasury securities and obligations of U.S. government corporations & agencies | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 0 | 0 | |
U.S. Treasury securities and obligations of U.S. government corporations & agencies | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 121,734,000 | 99,957,000 | |
U.S. Treasury securities and obligations of U.S. government corporations & agencies | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 0 | 0 | |
Obligations of states and political subdivisions | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 84,294,000 | 78,084,000 | |
Obligations of states and political subdivisions | Fair Value, Measurements, Recurring [Member] | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 84,294,000 | 78,084,000 | |
Obligations of states and political subdivisions | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 0 | 0 | |
Obligations of states and political subdivisions | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 84,294,000 | 78,084,000 | |
Obligations of states and political subdivisions | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 0 | 0 | |
Mortgage-backed Securities [Member] | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 209,692,000 | 195,401,000 | |
Mortgage-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 209,692,000 | 195,401,000 | |
Mortgage-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 0 | 0 | |
Mortgage-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 209,692,000 | 195,401,000 | |
Mortgage-backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 0 | 0 | |
Trust preferred securities | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 2,141,000 | 364,000 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning balance | 364,000 | ||
Transfers into Level 3 | 0 | ||
Transfers out of Level 3 | 0 | ||
Total gains or losses [Abstract] | |||
Included in net income | 0 | ||
Included in other comprehensive income | 1,876,000 | ||
Purchases, issuances, sales and settlements [Abstract] | |||
Purchases | 0 | ||
Issuances | 0 | ||
Sales | 0 | ||
Settlements | (99,000) | ||
Ending Balance | 2,141,000 | ||
Total gains or losses for the period included in net income attributable to the change in unrealized gains or losses related to assets and liabilities still held at the reporting date | 0 | ||
Trust preferred securities | Fair Value, Measurements, Recurring [Member] | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 2,141,000 | 364,000 | |
Trust preferred securities | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 0 | 0 | |
Trust preferred securities | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 0 | 0 | |
Trust preferred securities | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 2,141,000 | 364,000 | |
Other securities | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 4,062,000 | 4,050,000 | |
Other securities | Fair Value, Measurements, Recurring [Member] | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 4,062,000 | 4,050,000 | |
Other securities | Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 65,000 | 55,000 | |
Other securities | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | 3,997,000 | 3,995,000 | |
Other securities | Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) | |||
Available-for-sale: [Abstract] | |||
Total available-for-sale securities | $ 0 | $ 0 |
Fair Value of Assets and Liab31
Fair Value of Assets and Liabilities, Part II (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | ||
Foreclosed Assets Held for Sale [Abstract] | |||
Other real estate owned | $ 278,000 | $ 263,000 | |
Assets Measured On Recurring And Nonrecurring Basis Valuation Techniques [Abstract] | |||
Assets, Fair Value Disclosure, Recurring | 2,141,000 | 364,000 | |
Financial Assets [Abstract] | |||
Available-for-sale securities | 421,923,000 | 377,856,000 | |
Held-to-maturity Securities | 43,973,000 | 53,650,000 | |
Held-to-maturity Securities, Fair Value | 44,505,000 | 53,937,000 | |
Carrying Amount [Member] | |||
Financial Assets [Abstract] | |||
Cash and due from banks | 45,842,000 | 51,236,000 | |
Federal funds sold | 492,000 | 494,000 | |
Available-for-sale securities | 421,923,000 | 377,856,000 | |
Held-to-maturity Securities | 43,973,000 | 53,650,000 | |
Loans held for sale | 2,576,000 | 1,958,000 | |
Loans net of allowance for loan losses | 1,042,596,000 | 1,046,766,000 | |
Interest receivable | 6,044,000 | 6,828,000 | |
Federal Reserve Bank stock | 1,522,000 | 1,522,000 | |
Federal Home Loan Bank stock | 3,391,000 | 3,391,000 | |
Financial Liabilities [Abstract] | |||
Deposits | 1,266,199,000 | 1,272,077,000 | |
Securities sold under agreements to repurchase | 117,468,000 | 121,869,000 | |
Interest payable | 302,000 | 285,000 | |
Federal Home Loan Bank borrowings | 25,000,000 | 20,000,000 | |
Junior subordinated debentures | 20,620,000 | 20,620,000 | |
Fair Value [Member] | |||
Financial Assets [Abstract] | |||
Cash and due from banks | 45,842,000 | 51,236,000 | |
Federal funds sold | 492,000 | 494,000 | |
Available-for-sale securities | 421,923,000 | 377,856,000 | |
Held-to-maturity Securities, Fair Value | 44,505,000 | 53,937,000 | |
Loans held for sale | 2,576,000 | 1,958,000 | |
Loans net of allowance for loan losses | 1,048,461,000 | 1,051,110,000 | |
Interest receivable | 6,044,000 | 6,828,000 | |
Federal Reserve Bank stock | 1,522,000 | 1,522,000 | |
Federal Home Loan Bank stock | 3,391,000 | 3,391,000 | |
Financial Liabilities [Abstract] | |||
Deposits | 1,266,301,000 | 1,272,358,000 | |
Securities sold under agreements to repurchase | 117,484,000 | 121,870,000 | |
Interest payable | 302,000 | 285,000 | |
Federal Home Loan Bank borrowings | 25,485,000 | 20,541,000 | |
Junior subordinated debentures | 12,557,000 | 12,528,000 | |
Fair Value, Measurements, Nonrecurring [Member] | Carrying Amount [Member] | |||
Foreclosed Assets Held for Sale [Abstract] | |||
Other real estate owned | 278,000 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value [Member] | |||
Foreclosed Assets Held for Sale [Abstract] | |||
Other real estate owned | 35,000 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Financial Assets [Abstract] | |||
Cash and due from banks | 45,842,000 | 51,236,000 | |
Federal funds sold | 492,000 | 494,000 | |
Available-for-sale securities | 65,000 | 55,000 | |
Held-to-maturity Securities, Fair Value | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans net of allowance for loan losses | 0 | 0 | |
Interest receivable | 0 | 0 | |
Federal Reserve Bank stock | 0 | 0 | |
Federal Home Loan Bank stock | 0 | 0 | |
Financial Liabilities [Abstract] | |||
Deposits | 0 | 0 | |
Securities sold under agreements to repurchase | 0 | 0 | |
Interest payable | 0 | 0 | |
Federal Home Loan Bank borrowings | 0 | 0 | |
Junior subordinated debentures | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | |||
Financial Assets [Abstract] | |||
Cash and due from banks | 0 | 0 | |
Federal funds sold | 0 | 0 | |
Available-for-sale securities | 419,717,000 | 377,437,000 | |
Held-to-maturity Securities, Fair Value | 44,505,000 | 53,937,000 | |
Loans held for sale | 2,576,000 | 1,958,000 | |
Loans net of allowance for loan losses | 0 | 0 | |
Interest receivable | 6,044,000 | 6,828,000 | |
Federal Reserve Bank stock | 1,522,000 | 1,522,000 | |
Federal Home Loan Bank stock | 3,391,000 | 3,391,000 | |
Financial Liabilities [Abstract] | |||
Deposits | 1,076,898,000 | 1,053,800,000 | |
Securities sold under agreements to repurchase | 117,484,000 | 121,870,000 | |
Interest payable | 302,000 | 285,000 | |
Federal Home Loan Bank borrowings | 25,485,000 | 20,541,000 | |
Junior subordinated debentures | 12,557,000 | 12,528,000 | |
Significant Unobservable Inputs (Level 3) | |||
Financial Assets [Abstract] | |||
Cash and due from banks | 0 | 0 | |
Federal funds sold | 0 | 0 | |
Available-for-sale securities | 2,141,000 | 364,000 | |
Held-to-maturity Securities, Fair Value | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans net of allowance for loan losses | 1,048,461,000 | 1,051,110,000 | |
Interest receivable | 0 | 0 | |
Federal Reserve Bank stock | 0 | 0 | |
Federal Home Loan Bank stock | 0 | 0 | |
Financial Liabilities [Abstract] | |||
Deposits | 189,403,000 | 218,558,000 | |
Securities sold under agreements to repurchase | 0 | 0 | |
Interest payable | 0 | 0 | |
Federal Home Loan Bank borrowings | 0 | 0 | |
Junior subordinated debentures | $ 0 | $ 0 | |
Trust preferred securities | Significant Unobservable Inputs (Level 3) | Discounted Cash Flow [Member] | |||
Assets Measured On Recurring And Nonrecurring Basis Valuation Techniques [Abstract] | |||
Discount rate (in hundredths) | 11.30% | 11.60% | |
Constant prepayment rate (in hundredths) | [1] | 1.30% | 1.30% |
Cumulative projected prepayments (in hundredths) | 24.40% | 24.40% | |
Probability of default (in hundredths) | 0.40% | 0.10% | |
Loss severity (in hundredths) | 97.30% | 97.40% | |
Projected cures given deferral (in hundredths) | 100.00% | 100.00% | |
Impaired loans (collateral dependent) | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 298,000 | $ 1,313,000 | |
Impaired loans (collateral dependent) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 | |
Impaired loans (collateral dependent) | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 0 | $ 0 | |
Impaired loans (collateral dependent) | Significant Unobservable Inputs (Level 3) | Minimum [Member] | Third Party Valuations [Member] | |||
Assets Measured On Recurring And Nonrecurring Basis Valuation Techniques [Abstract] | |||
Discount to reflect realizable value (in hundredths) | 0.00% | 0.00% | |
Impaired loans (collateral dependent) | Significant Unobservable Inputs (Level 3) | Maximum [Member] | Third Party Valuations [Member] | |||
Assets Measured On Recurring And Nonrecurring Basis Valuation Techniques [Abstract] | |||
Discount to reflect realizable value (in hundredths) | 40.00% | 40.00% | |
Impaired loans (collateral dependent) | Significant Unobservable Inputs (Level 3) | Weighted Average [Member] | Third Party Valuations [Member] | |||
Assets Measured On Recurring And Nonrecurring Basis Valuation Techniques [Abstract] | |||
Discount to reflect realizable value (in hundredths) | 20.00% | 20.00% | |
Impaired loans (collateral dependent) | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 298,000 | $ 1,313,000 | |
Assets Held-for-sale [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 35,000 | ||
Assets Held-for-sale [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | 0 | ||
Assets Held-for-sale [Member] | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 0 | ||
Assets Held-for-sale [Member] | Significant Unobservable Inputs (Level 3) | Minimum [Member] | Third Party Valuations [Member] | |||
Assets Measured On Recurring And Nonrecurring Basis Valuation Techniques [Abstract] | |||
Discount to reflect realizable value less estimated selling costs (in hundredths) | 0.00% | ||
Assets Held-for-sale [Member] | Significant Unobservable Inputs (Level 3) | Maximum [Member] | Third Party Valuations [Member] | |||
Assets Measured On Recurring And Nonrecurring Basis Valuation Techniques [Abstract] | |||
Discount to reflect realizable value less estimated selling costs (in hundredths) | 40.00% | ||
Assets Held-for-sale [Member] | Significant Unobservable Inputs (Level 3) | Weighted Average [Member] | Third Party Valuations [Member] | |||
Assets Measured On Recurring And Nonrecurring Basis Valuation Techniques [Abstract] | |||
Discount to reflect realizable value less estimated selling costs (in hundredths) | 35.00% | ||
Assets Held-for-sale [Member] | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Assets, Fair Value Disclosure, Nonrecurring | $ 35,000 | ||
[1] | Every five years |