Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 11, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | F&M BANK CORP | |
Entity Central Index Key | 740,806 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer | No | |
Is Entity a Voluntary Filer | No | |
Is Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 3,293,244 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
Consolidated Statements of Inco
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 held for investment | $ 6,955 | $ 6,552 | $ 13,727 | $ 12,778 |
Interest and fees on loans held for sale | 322 | 49 | 513 | 64 |
Interest on federal funds sold | 3 | 12 | 8 | 24 |
Interest on debt securities | 93 | 61 | 136 | 99 |
Total interest income | 7,373 | 6,674 | 14,384 | 12,965 |
Interest expense | ||||
Interest on demand deposits | 157 | 169 | 314 | 336 |
Interest on savings accounts | 37 | 29 | 70 | 57 |
Interest on time deposits over $100,000 | 122 | 150 | 245 | 308 |
Interest on other time deposits | 231 | 280 | 472 | 584 |
Total interest on deposits | 547 | 628 | 1,101 | 1,285 |
Interest on short-term debt | 19 | 2 | 30 | 4 |
Interest on long-term debt | 132 | 289 | 252 | 580 |
Total interest expense | 698 | 919 | 1,383 | 1,869 |
Net interest income | $ 6,675 | 5,755 | 13,001 | 11,096 |
Provision for loan losses | 750 | 300 | 1,500 | |
Net interest income after provision for loan losses | $ 6,675 | 5,005 | 12,701 | 9,596 |
Noninterest income | ||||
Service charges | 236 | 254 | 462 | 511 |
Insurance and other commissions | 275 | 154 | 510 | 176 |
Other | 362 | 411 | 685 | 792 |
Income on bank owned life insurance | 117 | 115 | 235 | 231 |
Total noninterest income | 990 | 934 | 1,892 | 1,710 |
Noninterest expense | ||||
Salaries | 1,875 | 1,692 | 3,693 | 3,347 |
Employee benefits | 539 | 457 | 1,163 | 977 |
Occupancy expense | 162 | 155 | 340 | 315 |
Equipment expense | 151 | 138 | 314 | 282 |
FDIC insurance assessment | 198 | 180 | 390 | 360 |
OREO expenses/losses | 274 | 46 | 516 | 94 |
Other | 1,297 | 1,133 | 2,462 | 2,164 |
Total noninterest expense | 4,496 | 3,801 | 8,878 | 7,539 |
Income before income taxes | 3,169 | 2,138 | 5,715 | 3,767 |
Income tax expense | 943 | 642 | 1,592 | 1,118 |
Consolidated net income - F & M Bank Corp. | 2,226 | 1,496 | 4,123 | 2,649 |
Net income - Noncontrolling interest (income) loss | (50) | (12) | (76) | 18 |
Net Income - F & M Bank Corp | 2,176 | $ 1,484 | 4,047 | $ 2,667 |
Dividends paid/accumulated on preferred stock | 127 | 255 | ||
Net income available to common stockholders | $ 2,049 | $ 1,484 | $ 3,792 | $ 2,667 |
Per share data | ||||
Net income - basic | $ 0.62 | $ 0.45 | $ 1.15 | $ 0.91 |
Net income - diluted | 0.58 | 0.45 | 1.08 | 0.91 |
Cash dividends | $ 0.18 | $ 0.17 | $ 0.36 | $ 0.34 |
Weighted average shares outstanding - basic | 3,294,365 | 3,288,277 | 3,293,510 | 2,945,363 |
Weighted average shares outstanding - diluted | 3,738,765 | 3,288,277 | 3,737,910 | 2,945,363 |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Interest on time deposits | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Income: | ||||
Net Income - F & M Bank Corp | $ 2,176 | $ 1,484 | $ 4,047 | $ 2,667 |
Net Income (loss) attributable to noncontrolling interest | 50 | 12 | 76 | (18) |
Consolidated Net Income | 2,226 | 1,496 | 4,123 | 2,649 |
Other comprehensive income (loss): | ||||
Unrealized holding gains (losses) on available-for-sale securities | $ (1) | (23) | 23 | (5) |
Tax effect | 8 | (8) | 2 | |
Unrealized holding gain (loss), net of tax | $ (1) | (15) | 15 | (3) |
Total other comprehensive income (loss) | (1) | (15) | 15 | (3) |
Comprehensive income | $ 2,225 | $ 1,481 | $ 4,138 | $ 2,646 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 6,291 | $ 6,241 |
Money market funds | $ 528 | 911 |
Federal funds sold | 16,051 | |
Cash and cash equivalents | $ 6,819 | 23,203 |
Securities: | ||
Held to maturity - fair value of $125 in 2015 and 2014 | 125 | 125 |
Available for sale | 13,246 | 13,215 |
Other investments | 10,808 | 8,964 |
Loans held for sale | 55,762 | 13,382 |
Loans held for investment | 532,805 | 518,202 |
Less allowance for loan losses | (8,914) | (8,725) |
Net loans held for investment | 523,891 | 509,477 |
Other real estate owned | 2,445 | 3,507 |
Bank premises and equipment, net | 7,093 | 6,458 |
Interest receivable | 1,663 | 1,675 |
Goodwill | 2,670 | 2,670 |
Bank owned life insurance | 12,811 | 12,581 |
Other assets | 10,583 | 10,051 |
Total assets | 647,916 | 605,308 |
Deposits: | ||
Noninterest bearing | 119,326 | 112,198 |
Interest bearing: | ||
Demand | 86,529 | 93,694 |
Money market accounts | 25,273 | 25,900 |
Savings | 77,075 | 64,249 |
Time deposits over $100,000 | 63,359 | 79,813 |
All other time deposits | 111,208 | 115,651 |
Total deposits | 482,770 | 491,505 |
Short-term debt | 48,087 | 14,358 |
Accrued liabilities | 12,221 | 11,772 |
Long-term debt | 24,321 | 9,875 |
Total liabilities | 567,399 | 527,510 |
Stockholders' Equity | ||
Preferred Stock $5 par value, 400,000 shares authorized, issued and outstanding for 2015 and 2014 | 9,425 | 9,425 |
Common stock, $5 par value, 6,000,000 shares authorized, 3,293,892 and 3,287,470 shares issued and outstanding for 2015 and 2014, respectively | 16,470 | 16,459 |
Additional paid in capital - common stock | 11,288 | 11,260 |
Retained earnings | 45,161 | 42,554 |
Noncontrolling interest | 484 | 426 |
Accumulated other comprehensive loss | (2,311) | (2,326) |
Total stockholders' equity | 80,517 | 77,798 |
Total liabilities and stockholders' equity | $ 647,916 | $ 605,308 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Held to maturity - fair value | $ 125 | $ 125 |
STOCKHOLDERS EQUITY: | ||
Preferred Stock, par value | $ 5 | $ 5 |
Preferred Stock shares authorized | 400,000 | 400,000 |
Preferred Stock shares issued | 400,000 | 400,000 |
Preferred Stock shares outstanding | 400,000 | 400,000 |
Common stock, par value | $ 5 | $ 5 |
Common stock shares authorized | 6,000,000 | 6,000,000 |
Common stock shares issued | 3,293,892 | 3,287,470 |
Common stock shares outstanding | 3,293,892 | 3,287,470 |
Consolidated Statements of Cash
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 | $ 4,047 | $ 2,667 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 348 | 294 |
Amortization of security premiums, net | 70 | 46 |
Loans held for sale originated | (36,299) | (22,636) |
Sale of loans held for sale originated | 33,356 | 21,114 |
Provision for loan losses | 300 | 1,500 |
(Increase) Decrease in interest receivable | 11 | (26) |
Increase in other assets | (763) | (1,795) |
Increase (decrease) in accrued expenses | 735 | (572) |
Amortization of limited partnership investments | 314 | 304 |
Income from life insurance investment | (235) | (231) |
(Gain) loss on Other Real Estate Owned | 506 | 47 |
Net adjustments | (1,657) | (1,955) |
Net cash provided by operating activities | 2,390 | 712 |
Cash flows from investing activities | ||
Purchase of investments available for sale | (10,346) | (8,275) |
Proceeds from maturity of investments available for sale | $ 8,111 | 27,276 |
Purchase of investments held to maturity | (100) | |
Proceeds from maturity of investments held to maturity | 106 | |
Net increase in loans held for investment | $ (14,487) | (20,706) |
Net increase in loans held for sale participations | (39,437) | (8,371) |
Proceeds from the sale of other real estate owned | 328 | 686 |
Purchase of property and equipment | (982) | (227) |
Net cash used in investing activities | (56,813) | (9,611) |
Cash flows from financing activities | ||
Net change in demand and savings deposits | 12,165 | 10,371 |
Net change in time deposits | (20,898) | (2,270) |
Net change in short-term debt | 33,729 | (128) |
Cash dividends paid | (1,440) | (986) |
Proceeds from issuance of common stock | 70 | $ 12,053 |
Repurchase of common stock | (31) | |
Proceeds from issuance of long-term debt | 15,000 | |
Repayment of long-term debt | (554) | $ (4,000) |
Net cash provided by financing activities | 38,039 | 15,040 |
Net Increase (decrease) in Cash and Cash Equivalents | (16,384) | 6,141 |
Cash and cash equivalents, beginning of period | 23,203 | 6,545 |
Cash and cash equivalents, end of period | 6,819 | 12,686 |
Supplemental disclosure | ||
Interest expense | 710 | 1,831 |
Income taxes | $ 1,000 | 800 |
Transfers from loans to Other Real Estate Owned | 2,618 | |
Noncash exchange of other real estate owned | $ (227) | $ (455) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) $ in Thousands | USD ($) |
Balance, beginning of period at Dec. 31, 2013 | $ 54,141 |
Comprehensive income | |
Net Income - F & M Bank Corp | 2,667 |
Net income (loss) attributable to noncontrolling interest | (18) |
Net change in unrealized appreciation on securities available for sale, net of taxes | (3) |
Total comprehensive income | 2,646 |
Minority Interest Capital Distributions | (37) |
Issuance of common stock | $ 12,053 |
Repurchase of common stock | |
Dividends declared | $ (986) |
Balance, end of period at Jun. 30, 2014 | 67,817 |
Balance, beginning of period at Dec. 31, 2014 | 77,798 |
Comprehensive income | |
Net Income - F & M Bank Corp | 4,047 |
Net income (loss) attributable to noncontrolling interest | 76 |
Net change in unrealized appreciation on securities available for sale, net of taxes | 15 |
Total comprehensive income | 4,138 |
Minority Interest Capital Distributions | (18) |
Issuance of common stock | 70 |
Repurchase of common stock | (31) |
Dividends declared | (1,440) |
Balance, end of period at Jun. 30, 2015 | $ 80,517 |
1. Accounting Principles
1. Accounting Principles | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Principles | |
1. Accounting Principles | The consolidated financial statements include the accounts of F & M Bank Corp. and its subsidiaries (the “Company”). Significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements conform to accounting principles generally accepted in the United States of America and to general industry practices. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of June 30, 2015 and the results of operations for the quarters ended June 30, 2015 and 2014. The notes included herein should be read in conjunction with the notes to financial statements included in the 2014 annual report to shareholders of F & M Bank Corp. The Company does not expect the anticipated adoption of any newly issued accounting standards to have a material impact on future operations or financial position. Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and gains or losses on certain derivative contracts, are reported as a separate component of the equity section of the balance sheet. Such items, along with operating net income, are components of comprehensive income. Subsequent Events In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. Loans Held for Investment Loans are carried on the balance sheet net of any unearned interest and the allowance for loan losses. Interest income on loans is determined using the effective interest method on the daily amount of principal outstanding except where serious doubt exists as to collectability of the loan, in which case the accrual of income is discontinued. Loans Held for Sale Allowance for Loan Losses The provision for loan losses charged to operations is an amount sufficient to bring the allowance for loan losses to an estimated balance that management considers adequate to absorb potential losses in the portfolio. Loans are charged against the allowance when management believes the collectability of the principal is unlikely. Recoveries of amounts previously charged-off are credited to the allowance. Management’s determination of the adequacy of the allowance is based on an evaluation of the composition of the loan portfolio, the value and adequacy of collateral, current economic conditions, historical loan loss experience, and other risk factors. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, particularly those affecting real estate values. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. Allowance for Loan Losses, continued A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Nonaccrual Loans Loans are placed on nonaccrual status when they become ninety days or more past due, unless there is an expectation that the loan will either be brought current or paid in full in a reasonable period of time. Earnings per Share Accounting guidance specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements if those securities trade in a public market. Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding. Diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive common shares had been issued. The dilutive effect of conversion of preferred stock is reflected in the diluted earnings per share calculation. Net income available to common stockholders represents consolidated net income adjusted for preferred dividends declared. The following table provides a reconciliation of net income to net income available to common stockholders for the periods presented: For the Six months ended For the quarter ended June 30, 2015 June 30, 2015 Earnings Available to Common Stockholders: Net Income $ 4,047,184 $ 2,176,633 Preferred Stock Dividends 255,000 127,500 Net Income Available to Common Stockolders $ 3,792,184 $ 2,049,133 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated: Six months ended June 30, 2015 Quarter ended June 30, 2015 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 3,792,184 3,293,510 $ 1.15 $ 2,049,133 3,294,365 $ 0.62 Effect of Dilutive Securities: Convertible Preferred Stock 255,000 444,400 (0.07 ) 127,500 444,400 (0.04 ) Diluted EPS $ 4,047,184 3,737,910 $ 1.08 $ 2,176,633 3,738,765 $ 0.58 |
2. Investment Securities
2. Investment Securities | 6 Months Ended |
Jun. 30, 2015 | |
Investment Securities | |
2. Investment Securities | Investment securities available for sale are carried in the consolidated balance sheets at their approximate market value, amortized cost and unrealized gains and losses at June 30, 2015 and December 31, 2014 are reflected in the table below. The amortized costs of investment securities held to maturity are carried in the consolidated balance sheets and their approximate market values at June 30, 2015 and December 31, 2014 are as follows: 2015 2014 Market Market Cost Value Cost Value Securities held to maturity U. S. Treasury and agency obligations $ 125 $ 125 $ 125 $ 125 Total $ 125 $ 125 $ 125 $ 125 June 30, 2015 Unrealized Market Cost Gains Losses Value Securities available for sale U. S. Treasuries $ 4,021 $ 21 $ - $ 4,042 Government sponsored enterprises 8,149 11 16 8,144 Mortgage-backed securities 915 10 - 925 Marketable equities 135 - - 135 Total $ 13,220 $ 42 $ 16 $ 13,246 December 31, 2014 Unrealized Market Cost Gains Losses Value Securities available for sale U. S. Treasuries $ 4,026 $ - $ 6 $ 4,020 Government sponsored enterprises 8,039 9 10 8,038 Mortgage-backed securities 1,011 11 - 1,022 Marketable equities 135 - - 135 Total $ 13,211 $ 20 $ 16 $ 13,215 The amortized cost and fair value of securities at June 30, 2015, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities Held to Maturity Securities Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ - $ - $ - $ - Due after one year through five years 125 125 12,170 12,186 Due after five years - - 1,050 1,060 Total $ 125 $ 125 $ 13,220 $ 13,246 There were no gains and losses on sales of securities in the first six months of 2015 or 2014. There were also no securities with an other than temporary impairment. The fair value and gross unrealized losses for securities, segregated by the length of time that individual securities have been in a continuous gross unrealized loss position, at June 30, 2015 and December 31, 2014 were as follows (dollars in thousands): Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2015 Government sponsored Enterprises $ 2,000 $ (16 ) $ - $ - $ 2,000 $ (16 ) Total $ 2,000 $ (16 ) $ - $ - $ 2,000 $ (16 ) December 31, 2014 U. S. Treasuries $ 4,020 $ (6 ) $ - $ - $ 4,020 $ (6 ) Government sponsored Enterprises 2,004 (2 ) 1,991 (8 ) 3,995 (10 ) Total $ 6,024 $ (8 ) $ 1,991 $ (8 ) $ 8,015 $ (16 ) Other investments, which consist of stock of correspondent banks and investments in low income housing projects, increased since December 31, 2014. This increase is due to FHLB stock purchases during 2015 and an increase in the Federal Reserve Bank Stock holding requirement. |
3. Loans Held for Investment
3. Loans Held for Investment | 6 Months Ended |
Jun. 30, 2015 | |
Loans Held For Investment | |
3. Loans Held for Investment | Loans outstanding at June 30, 2015 and December 31, 2014 are summarized as follows: 2015 2014 Construction/Land Development $ 68,590 $ 67,181 Farmland 12,844 12,507 Real Estate 164,863 162,249 Multi-Family 12,104 11,775 Commercial Real Estate 124,635 122,305 Home Equity – closed end 9,329 9,394 Home Equity – open end 52,347 52,182 Commercial & Industrial – Non-Real Estate 28,435 28,161 Consumer 8,145 9,110 Dealer Finance 49,002 40,633 Credit Cards 2,511 2,705 Total $ 532,805 $ 518,202 The following is a summary of information pertaining to impaired loans (in thousands): Unpaid Average Interest June 30, 2015 Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 3,263 $ 3,401 $ - $ 4,678 $ 92 Farmland - - - - - Real Estate 1,241 1,241 - 342 36 Multi-Family - - - - - Commercial Real Estate 1,136 1,136 - 1,445 30 Home Equity – closed end - - - - - Home Equity – open end 1,547 1,547 - 969 72 Commercial & Industrial – Non-Real Estate 186 186 - 207 6 Consumer - - - - - Credit cards - - - - - Dealer Finance - - - - - 7,373 7,511 7,641 236 Impaired loans with a valuation allowance Construction/Land Development 12,923 12,923 1,760 13,142 191 Farmland - - - - - Real Estate 571 571 24 850 18 Multi-Family - - - - - Commercial Real Estate 880 880 6 952 2 Home Equity – closed end - - - - - Home Equity – open end - - - - - Commercial & Industrial – Non-Real Estate - - - - - Consumer - - - - - Credit cards - - - - - Dealer Finance 63 63 14 25 3 14,437 14,437 1,804 14,969 214 Total impaired loans $ 21,810 $ 21,948 $ 1,804 $ 22,610 $ 450 Unpaid Average Interest December 31, 2014 Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 4,982 $ 5,402 $ - $ 5,412 $ 251 Farmland - - - 1,163 - Real Estate 141 141 - 85 5 Multi-Family - - - - - Commercial Real Estate 1,159 1,459 - 1,450 66 Home Equity – closed end - - - 123 - Home Equity – open end 1,649 1,649 - 330 57 Commercial & Industrial – Non-Real Estate 191 191 - 237 11 Consumer - - - - - Credit cards - - - - - Dealer Finance - - - - - 8,122 8,842 8,800 390 Impaired loans with a valuation allowance Construction/Land Development 12,976 14,749 1,469 12,056 326 Farmland - - - - - Real Estate 926 926 101 988 105 Multi-Family - - - - - Commercial Real Estate 938 938 47 1,030 4 Home Equity – closed end - - - 72 - Home Equity – open end - - - 40 - Commercial & Industrial – Non-Real Estate - - - - - Consumer - - - - - Credit cards - - - - - Dealer Finance - - - - - 14,840 16,613 1,617 14,186 435 Total impaired loans $ 22,962 $ 25,455 $ 1,617 $ 22,986 $ 825 The Recorded Investment is defined as the principal balance less principal payments and charge-offs |
4. Allowance for Loan Losses
4. Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Allowance For Loan Losses | |
4. Allowance for Loan Losses | A summary of the allowance for loan losses follows: June 30, 2015 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 4,738 $ 138 $ 81 $ 347 $ 5,028 $ 1,760 $ 3,268 Farmland 102 - - (1 ) 101 - 101 Real Estate 623 - - (125 ) 498 24 474 Multi-Family 95 - - - 95 - 95 Commercial Real Estate 126 - 28 (71 ) 83 6 77 Home Equity – closed end 188 24 - 11 175 - 175 Home Equity – open end 154 25 - 16 145 - 145 Commercial & Industrial – Non-Real Estate 1,014 - 56 (138 ) 932 - 932 Consumer 214 17 16 10 223 - 223 Dealer Finance 1,336 86 16 250 1,516 14 1,502 Credit Cards 135 41 23 1 118 - 118 Total $ 8,725 $ 331 $ 220 $ 300 $ 8,914 $ 1,804 $ 7,110 December 31, 2014 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 4,007 $ 1,611 $ 223 $ 2,119 $ 4,738 $ 1,469 $ 3,269 Farmland (2 ) - - 104 102 - 102 Real Estate 400 208 - 431 623 101 522 Multi-Family - - - 95 95 - 95 Commercial Real Estate 777 - 108 (759 ) 126 47 79 Home Equity – closed end 157 - - 31 188 - 188 Home Equity – open end 476 80 - (242 ) 154 - 154 Commercial & Industrial – Non-Real Estate 1,464 385 356 (421 ) 1,014 - 1,014 Consumer 156 33 33 58 214 - 214 Dealer Finance 628 107 6 809 1,336 - 1,336 Credit Cards 121 46 35 25 135 - 135 Total $ 8,184 $ 2,470 $ 761 $ 2,250 $ 8,725 $ 1,617 $ 7,108 Recorded Investment in Loan Receivables (in thousands) June 30, 2015 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 68,590 $ 16,186 $ 52,404 Farmland 12,844 - 12,844 Real Estate 164,863 1,812 163,051 Multi-Family 12,104 - 12,104 Commercial Real Estate 124,635 2,016 122,619 Home Equity – closed end 9,329 - 9,329 Home Equity –open end 52,347 1,547 50,800 Commercial & Industrial – Non-Real Estate 28,435 186 28,249 Consumer 8,145 - 8,145 Dealer Finance 49,002 63 48,939 Credit Cards 2,511 - 2,511 $ 532,805 $ 21,810 $ 510,995 Total December 31, 2014 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 67,181 $ 17,958 $ 49,223 Farmland 12,507 - 12,507 Real Estate 162,249 1,067 161,182 Multi-Family 11,775 - 11,775 Commercial Real Estate 122,305 2,097 120,208 Home Equity – closed end 9,394 - 9,394 Home Equity –open end 52,182 1,649 50,533 Commercial & Industrial – Non-Real Estate 28,161 191 27,970 Consumer 9,110 - 9,110 Dealer Finance 40,633 40,633 Credit Cards 2,705 - 2,705 $ 518,202 $ 22,962 $ 495,240 Total Aging of Past Due Loans Receivable (in thousands) as of June 30, 2015 30-59 Days Past due 60-89 Days Past Due Greater than 90 Days (excluding non-accrual) Non-Accrual Loans Total Past Due Current Total Loan Receivable June 30, 2015 Construction/Land Development $ 41 $ 337 $ - $ 4,536 $ 4,914 $ 63,676 $ 68,590 Farmland - - - - - 12,844 12,844 Real Estate 2,740 1,357 - 1,257 5,354 159,509 164,863 Multi-Family - - - - - 12,104 12,104 Commercial Real Estate 1,963 105 - 1,047 3,115 121,520 124,635 Home Equity – closed end 35 - - - 35 9,294 9,329 Home Equity – open end 126 25 136 115 402 51,945 52,347 Commercial & Industrial – Non- Real Estate 96 5 - - 101 28,334 28,435 Consumer 90 44 13 - 147 7,998 8,145 Dealer Finance 631 122 117 77 947 48,055 49,002 Credit Cards 4 6 1 - 11 2,500 2,511 Total $ 5,726 $ 2,001 $ 267 $ 7,032 $ 15,026 $ 517,779 $ 532,805 Aging of Past Due Loans Receivable (in thousands) as of December 31, 2014 30-59 Days Past due 60-89 Days Past Due Greater than 90 Days (excluding non-accrual) Non-Accrual Loans Total Past Due Current Total Loan Receivable December 31, 2014 Construction/Land Development $ 205 $ 166 $ - $ 4,508 $ 4,879 $ 62,302 $ 67,181 Farmland - - - - - 12,507 12,507 Real Estate 5,085 635 - 973 6,693 155,556 162,249 Multi-Family - - - - - 11,775 11,775 Commercial Real Estate 747 - - 1,165 1,912 120,393 122,305 Home Equity – closed end 162 15 - 10 187 9,207 9,394 Home Equity – open end 730 25 - 143 898 51,284 52,182 Commercial & Industrial – Non- Real Estate - - - 14 14 28,147 28,161 Consumer 290 9 - - 299 8,811 9,110 Dealer Finance 696 189 - 161 1,046 39,587 40,633 Credit Cards 36 - 1 - 37 2,668 2,705 Total $ 7,951 $ 1,039 $ 1 $ 6,974 $ 15,965 $ 502,237 $ 518,202 CREDIT QUALITY INDICATORS (in thousands) AS OF JUNE 30, 2015 Corporate Credit Exposure Credit Risk Profile by Creditworthiness Category Grade 1 Minimal Risk Grade 2 Modest Risk Grade 3 Average Risk Grade 4 Acceptable Risk Grade 5 Marginally Acceptable Grade 6 Watch Grade 7 Substandard Grade 8 Doubtful Total Construction/Land Development $ - $ 370 $ 8,390 $ 28,823 $ 9,084 $ 5,227 $ 16,696 $ - $ 68,590 Farmland 67 - 1,995 3,721 4,969 - 2,092 - 12,844 Real Estate - 799 55,609 74,765 22,617 8,126 2,947 - 164,863 Multi-Family - 430 4,059 3,105 4,510 - - 12,104 Commercial Real Estate - 1,763 26,312 67,024 17,802 9,828 1,906 - 124,635 Home Equity – closed end - - 3,856 3,592 1,609 178 94 - 9,329 Home Equity – open end - 1,631 13,875 28,462 4,009 234 4,136 - 52,347 Commercial & Industrial (Non-Real Estate) 578 54 5,958 17,725 3,360 757 3 - 28,435 Total $ 645 $ 5,047 $ 120,054 $ 227,217 $ 67,960 $ 24,350 $ 27,874 $ - $ 473,147 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Credit Cards Consumer Performing $ 2,510 $ 57,017 Non performing 1 130 Total $ 2,511 $ 57,147 CREDIT QUALITY INDICATORS (in thousands) AS OF DECEMBER 31, 2014 Corporate Credit Exposure Credit Risk Profile by Creditworthiness Category Grade 1 Minimal Risk Grade 2 Modest Risk Grade 3 Average Risk Grade 4 Acceptable Risk Grade 5 Marginally Acceptable Grade 6 Watch Grade 7 Substandard Grade 8 Doubtful Total Construction/Land Development $ - $ 165 $ 8,460 $ 24,227 $ 9,605 $ 3,815 $ 20,909 $ - $ 67,181 Farmland 68 - 1,640 3,451 5,228 - 2,120 - 12,507 Real Estate - 629 60,290 66,464 23,934 7,083 3,849 - 162,249 Multi-Family - 468 4,145 2,183 4,979 - - - 11,775 Commercial Real Estate - 1,687 22,800 65,653 19,058 10,571 2,536 - 122,305 Home Equity – closed end - - 4,327 3,090 1,812 154 11 - 9,394 Home Equity – open end - 1,555 13,433 28,425 4,309 1,936 2,524 - 52,182 Commercial & Industrial (Non-Real Estate) 643 74 4,692 18,039 3,948 735 30 - 28,161 Total $ 711 $ 4,578 $ 119,787 $ 211,532 $ 72,873 $ 24,294 $ 31,979 $ - $ 465,754 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Credit Cards Consumer Performing $ 2,704 $ 49,582 Non performing 1 161 Total $ 2,705 $ 49,743 Description of loan grades: Grade 1 – Minimal Risk Grade 2 – Modest Risk Grade 3 – Average Risk Grade 4 – Acceptable Risk Grade 5 – Marginally acceptable s Grade 6 – Watch Grade 7 – Substandard Grade 8 – Doubtful |
5. Employee Benefit Plan
5. Employee Benefit Plan | 6 Months Ended |
Jun. 30, 2015 | |
Employee Benefit Plan | |
5. Employee Benefit Plan | The Bank has a qualified noncontributory defined benefit pension plan that covers substantially all of its employees. The benefits are primarily based on years of service and earnings. The Bank contributed $750,000 to the plan in the first quarter of 2015 and does not anticipate additional contributions for the 2015 plan year. The following is a summary of net periodic pension costs for the six-month and three-month periods ended June 30, 2015 and 2014. Six Months Ended Three Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Service cost $ 324,167 $ 250,514 $ 162,084 $ 125,257 Interest cost 205,472 188,854 102,736 94,427 Expected return on plan assets (419,409 ) (349,126 ) (209,705 ) (174,563 ) Amortization of net obligation at transition - - - - Amortization of prior service cost (7,618 ) (7,618 ) (3,809 ) (3,809 ) Amortization of net (gain) or loss 90,321 18,056 45,161 9,028 Net periodic pension cost $ 192,933 $ 100,680 $ 96,467 $ 50,340 |
6. Fair Value
6. Fair Value | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value | |
6. Fair Value | Accounting Standards Codification (ASC) 820, defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 Level 2 Level 3 – The following sections provide a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy: Securities: Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 securities would include U.S. agency securities, mortgage-backed agency securities, obligations of states and political subdivisions and certain corporate, asset backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Impaired Loans: ASC 820 applies to loans measured for impairment using the practical expedients permitted by ASC 310 including impaired loans measured at an observable market price (if available), or at the fair value of the loan’s collateral (if the loan is collateral dependent). Fair value of the loan’s collateral, when the loan is dependent on collateral, is determined by appraisals or independent valuation which is then adjusted for the cost related to liquidation of the collateral. Other Real Estate Owned: Certain assets such as other real estate owned (OREO) are measured at the lower of carrying amount or fair value less cost to sell. We believe that the fair value component in its valuation follows the provisions of ASC 820. Derivative Financial Instruments: The equity derivative contracts are purchased as part of our Indexed Certificate of Deposit (ICD) program and are an offset of an asset and liability. ICD values are measured on the S&P 500 Index. For level 3 assets and liabilities measured at fair value on a recurring basis or non-recurring basis as of June 30, 2015 and December 31, 2014 and significant unobservable inputs used in the fair value measurements were as follows: Fair Value at June 30, 2015 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 12,633 Discounted appraised value Discount for selling costs and age of appraisals 15%-55 % Other Real Estate Owned $ 2,445 Discounted appraised value Discount for selling costs and age of appraisals 15%-55 % Fair Value at December 31, 2014 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 13,223 Discounted appraised value Discount for selling costs and age of appraisals 15%-55 % Other Real Estate Owned $ 3,507 Discounted appraised value Discount for selling costs and age of appraisals 15%-55 % Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis. June 30, 2015 Total Level 1 Level 2 Level 3 U. S. Treasuries $ 4,042 $ - $ 4,042 $ - Government sponsored enterprises 8,144 - 8,144 - Mortgage-backed securities 925 - 925 - Marketable Equities 135 - 135 - Investment securities available for sale 13,246 - 13,246 - Total assets at fair value $ 13,246 $ - $ 13,246 $ - Total liabilities at fair value $ - $ - $ - $ - Derivative financial instruments at fair value $ 38 $ - $ 38 $ - December 31, 2014 Total Level 1 Level 2 Level 3 U. S. Treasuries $ 4,020 $ - $ 4,020 $ - Government sponsored enterprises 8,038 - 8,038 - Mortgage-backed securities 1,022 - 1,022 - Marketable Equities 135 - 135 - Investment securities available for sale 13,215 - 13,215 - Total assets at fair value $ 13,215 $ - $ 13,215 $ - Total liabilities at fair value $ - $ - $ - $ - Derivative financial instruments at fair value $ 33 $ - $ 33 $ - Assets and Liabilities Recorded at Fair Value on a Non-recurring Basis The table below presents the recorded amount of assets and liabilities measured at fair value on a non-recurring basis. The Company has determined that Other Real Estate Owned and Impaired Loans are Level 3. June 30, 2015 Total Level 1 Level 2 Level 3 Other Real Estate Owned $ 2,445 - - $ 2,445 - - Construction/Land Development 11,163 - - 11,163 Farmland - - - - Real Estate 547 - - 547 Multi-Family - - - - Commercial Real Estate 874 - - 874 Home Equity – closed end - - - - Home Equity – open end - - - - Commercial & Industrial – Non-Real Estate - - - - Consumer - - - - Credit cards - - - - Dealer Finance 49 - - 49 Impaired loans 12,633 - - 12,633 Total assets at fair value $ 15,078 $ - $ - $ 15,078 Total liabilities at fair value $ - $ - $ - $ - December 31, 2014 Total Level 1 Level 2 Level 3 Other Real Estate Owned $ 3,507 - - $ 3,507 - - Construction/Land Development 11,507 - - 11,507 Farmland - - - - Real Estate 825 - - 825 Multi-Family - - - - Commercial Real Estate 891 - - 891 Home Equity – closed end - - - - Home Equity – open end - - - - Commercial & Industrial – Non-Real Estate - - - - Consumer - - - - Credit cards - - - - Dealer Finance - - - - Impaired loans 13,223 - - 13,223 Total assets at fair value $ 16,730 - $ - $ 16,730 Total liabilities at fair value $ - $ - $ - $ - |
7. Disclosures About Fair Value
7. Disclosures About Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Disclosures About Fair Value Of Financial Instruments | |
7. Disclosures About Fair Value of Financial Instruments | ASC 825 “Financial Instruments” defines the fair value of a financial instrument as the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced liquidation or sale. As the majority of the Bank’s financial instruments lack an available trading market, significant estimates, assumptions and present value calculations are required to determine estimated fair value. The following presents the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2015 and December 31, 2014. This table excludes financial instruments for which the carrying amount approximates the fair value, which would be Level 1; inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. All financial instruments below are considered Level 2 with the exception of impaired loans (see previous table); inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. June 30, 2015 December 31, 2014 Estimated Carrying Estimated Carrying Fair Value Value Fair Value Value Financial Assets Loans $ 557,660 $ 532,805 $ 551,338 $ 518,202 Financial Liabilities Time deposits 177,093 175,567 196,826 195,464 Long-term debt 24,817 24,321 9,862 9,875 The carrying value of cash and cash equivalents, other investments, deposits with no stated maturities, short-term borrowings, and accrued interest approximate fair value. The fair value of securities was calculated using the most recent transaction price or a pricing model, which takes into consideration maturity, yields and quality. The remaining financial instruments were valued based on the present value of estimated future cash flows, discounted at various rates in effect for similar instruments entered into as of the end of each respective period shown above. |
8. Troubled Debt Restructuring
8. Troubled Debt Restructuring | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Asset Types | |
8. Troubled Debt Restructuring | In the determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings by adjusting the loan grades of such loans, which figure into the environmental factors associated with the allowance. Defaults resulting in charge-offs affect the historical loss experience ratios which are a component of the allowance calculation. Additionally, specific reserves may be established on restructured loans evaluated individually. During the six months ended June 30, 2015, there were eight loan modifications that were considered to be troubled debt restructurings. Modifications may have included rate adjustments, revisions to amortization schedules, suspension of principal payments for a temporary period, re-advancing funds to be applied as payments to bring the loan(s) current, or any combination thereof. Six Months ended June 30, 2015 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Real Estate 4 $ 2,724 $ 2,724 Consumer 4 43 43 Total 8 $ 2,767 $ 2,767 During the quarter ended June 30, 2015, there were five loan modifications that were considered to be troubled debt restructurings. Three Months ended June 30, 2015 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Real Estate 4 $ 2,724 $ 2,724 Consumer 1 6 6 Total 5 $ 2,730 $ 2,730 At June 30, 2015, one real estate loan (outstanding recorded investment of $95,000) that had been restructured in the previous 12 months, was in default or was on nonaccrual status. A restructured loan is considered in default when it becomes 90 days past due. During the six months and quarter ended, June 30, 2014, there were two loan modifications that were considered to be troubled debt restructurings; a real estate loan with a recorded investment of $85,000 and a consumer loan with a recorded investment of $24,000. There were also no troubled debt restructurings from the previous twelve months that went into default in the first quarter of 2014. A restructured loan is considered in default when it becomes 90 days past due. |
1. Accounting Principles (Polic
1. Accounting Principles (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Principles Policies | |
Comprehensive Income | Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and gains or losses on certain derivative contracts, are reported as a separate component of the equity section of the balance sheet. Such items, along with operating net income, are components of comprehensive income. |
Subsequent Events | In preparing these financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. |
Loans Held for Investment | Loans are carried on the balance sheet net of any unearned interest and the allowance for loan losses. Interest income on loans is determined using the effective interest method on the daily amount of principal outstanding except where serious doubt exists as to collectability of the loan, in which case the accrual of income is discontinued. |
Loans Held for Sale | These loans consist of fixed rate loans made through its subsidiary, VBS Mortgage and loans purchased from NorthPointe Bank, Grand Rapids, MI. |
Allowance for Loan Losses | The provision for loan losses charged to operations is an amount sufficient to bring the allowance for loan losses to an estimated balance that management considers adequate to absorb potential losses in the portfolio. Loans are charged against the allowance when management believes the collectability of the principal is unlikely. Recoveries of amounts previously charged-off are credited to the allowance. ManagementÂ’s determination of the adequacy of the allowance is based on an evaluation of the composition of the loan portfolio, the value and adequacy of collateral, current economic conditions, historical loan loss experience, and other risk factors. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, particularly those affecting real estate values. In addition, regulatory agencies, as an integral part of their examination process, periodically review the CompanyÂ’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrowerÂ’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loanÂ’s effective interest rate, the loanÂ’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. |
Nonaccrual Loans | Loans are placed on nonaccrual status when they become ninety days or more past due, unless there is an expectation that the loan will either be brought current or paid in full in a reasonable period of time. |
Earnings per Share | Accounting guidance specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements if those securities trade in a public market. Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding. Diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive common shares had been issued. The dilutive effect of conversion of preferred stock is reflected in the diluted earnings per share calculation. Net income available to common stockholders represents consolidated net income adjusted for preferred dividends declared. The following table provides a reconciliation of net income to net income available to common stockholders for the periods presented: For the Six months ended For the quarter ended June 30, 2015 June 30, 2015 Earnings Available to Common Stockholders: Net Income $ 4,047,184 $ 2,176,633 Preferred Stock Dividends 255,000 127,500 Net Income Available to Common Stockolders $ 3,792,184 $ 2,049,133 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated: Six months ended June 30, 2015 Quarter ended June 30, 2015 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 3,792,184 3,293,510 $ 1.15 $ 2,049,133 3,294,365 $ 0.62 Effect of Dilutive Securities: Convertible Preferred Stock 255,000 444,400 (0.07 ) 127,500 444,400 (0.04 ) Diluted EPS $ 4,047,184 3,737,910 $ 1.08 $ 2,176,633 3,738,765 $ 0.58 |
1. Accounting Principles (Table
1. Accounting Principles (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Principles Tables | |
Earnings per share | The following table provides a reconciliation of net income to net income available to common stockholders for the periods presented: For the Six months ended For the quarter ended June 30, 2015 June 30, 2015 Earnings Available to Common Stockholders: Net Income $ 4,047,184 $ 2,176,633 Preferred Stock Dividends 255,000 127,500 Net Income Available to Common Stockolders $ 3,792,184 $ 2,049,133 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated: Six months ended June 30, 2015 Quarter ended June 30, 2015 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 3,792,184 3,293,510 $ 1.15 $ 2,049,133 3,294,365 $ 0.62 Effect of Dilutive Securities: Convertible Preferred Stock 255,000 444,400 (0.07 ) 127,500 444,400 (0.04 ) Diluted EPS $ 4,047,184 3,737,910 $ 1.08 $ 2,176,633 3,738,765 $ 0.58 |
2. Investment Securities (Table
2. Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investment Securities Tables | |
Securities Impairment | The amortized costs of investment securities held to maturity are carried in the consolidated balance sheets and their approximate market values at June 30, 2015 and December 31, 2014 are as follows: 2015 2014 Market Market Cost Value Cost Value Securities held to maturity U. S. Treasury and agency obligations $ 125 $ 125 $ 125 $ 125 Total $ 125 $ 125 $ 125 $ 125 June 30, 2015 Unrealized Market Cost Gains Losses Value Securities available for sale U. S. Treasuries $ 4,021 $ 21 $ - $ 4,042 Government sponsored enterprises 8,149 11 16 8,144 Mortgage-backed securities 915 10 - 925 Marketable equities 135 - - 135 Total $ 13,220 $ 42 $ 16 $ 13,246 December 31, 2014 Unrealized Market Cost Gains Losses Value Securities available for sale U. S. Treasuries $ 4,026 $ - $ 6 $ 4,020 Government sponsored enterprises 8,039 9 10 8,038 Mortgage-backed securities 1,011 11 - 1,022 Marketable equities 135 - - 135 Total $ 13,211 $ 20 $ 16 $ 13,215 |
Schedule Amortized Cost and Fair Value for Securities | Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities Held to Maturity Securities Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ - $ - $ - $ - Due after one year through five years 125 125 12,170 12,186 Due after five years - - 1,050 1,060 Total $ 125 $ 125 $ 13,220 $ 13,246 |
Schedule of Securities with Unrealized Losses | The fair value and gross unrealized losses for securities, segregated by the length of time that individual securities have been in a continuous gross unrealized loss position, at June 30, 2015 and December 31, 2014 were as follows (dollars in thousands): Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2015 Government sponsored Enterprises $ 2,000 $ (16 ) $ - $ - $ 2,000 $ (16 ) Total $ 2,000 $ (16 ) $ - $ - $ 2,000 $ (16 ) December 31, 2014 U. S. Treasuries $ 4,020 $ (6 ) $ - $ - $ 4,020 $ (6 ) Government sponsored Enterprises 2,004 (2 ) 1,991 (8 ) 3,995 (10 ) Total $ 6,024 $ (8 ) $ 1,991 $ (8 ) $ 8,015 $ (16 ) |
3. Loans Held for Investment (T
3. Loans Held for Investment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Loans Held For Investment Tables | |
Schedule of Loans Outstanding | Loans outstanding at June 30, 2015 and December 31, 2014 are summarized as follows: 2015 2014 Construction/Land Development $ 68,590 $ 67,181 Farmland 12,844 12,507 Real Estate 164,863 162,249 Multi-Family 12,104 11,775 Commercial Real Estate 124,635 122,305 Home Equity – closed end 9,329 9,394 Home Equity – open end 52,347 52,182 Commercial & Industrial – Non-Real Estate 28,435 28,161 Consumer 8,145 9,110 Dealer Finance 49,002 40,633 Credit Cards 2,511 2,705 Total $ 532,805 $ 518,202 |
Schedule Impaired Loans | The following is a summary of information pertaining to impaired loans (in thousands): Unpaid Average Interest June 30, 2015 Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 3,263 $ 3,401 $ - $ 4,678 $ 92 Farmland - - - - - Real Estate 1,241 1,241 - 342 36 Multi-Family - - - - - Commercial Real Estate 1,136 1,136 - 1,445 30 Home Equity – closed end - - - - - Home Equity – open end 1,547 1,547 - 969 72 Commercial & Industrial – Non-Real Estate 186 186 - 207 6 Consumer - - - - - Credit cards - - - - - Dealer Finance - - - - - 7,373 7,511 7,641 236 Impaired loans with a valuation allowance Construction/Land Development 12,923 12,923 1,760 13,142 191 Farmland - - - - - Real Estate 571 571 24 850 18 Multi-Family - - - - - Commercial Real Estate 880 880 6 952 2 Home Equity – closed end - - - - - Home Equity – open end - - - - - Commercial & Industrial – Non-Real Estate - - - - - Consumer - - - - - Credit cards - - - - - Dealer Finance 63 63 14 25 3 14,437 14,437 1,804 14,969 214 Total impaired loans $ 21,810 $ 21,948 $ 1,804 $ 22,610 $ 450 Unpaid Average Interest December 31, 2014 Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 4,982 $ 5,402 $ - $ 5,412 $ 251 Farmland - - - 1,163 - Real Estate 141 141 - 85 5 Multi-Family - - - - - Commercial Real Estate 1,159 1,459 - 1,450 66 Home Equity – closed end - - - 123 - Home Equity – open end 1,649 1,649 - 330 57 Commercial & Industrial – Non-Real Estate 191 191 - 237 11 Consumer - - - - - Credit cards - - - - - Dealer Finance - - - - - 8,122 8,842 8,800 390 Impaired loans with a valuation allowance Construction/Land Development 12,976 14,749 1,469 12,056 326 Farmland - - - - - Real Estate 926 926 101 988 105 Multi-Family - - - - - Commercial Real Estate 938 938 47 1,030 4 Home Equity – closed end - - - 72 - Home Equity – open end - - - 40 - Commercial & Industrial – Non-Real Estate - - - - - Consumer - - - - - Credit cards - - - - - Dealer Finance - - - - - 14,840 16,613 1,617 14,186 435 Total impaired loans $ 22,962 $ 25,455 $ 1,617 $ 22,986 $ 825 |
4. Allowance for Loan Losses (T
4. Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Allowance For Loan Losses Tables | |
Summary Loan Loss Allowance Transactions | A summary of the allowance for loan losses follows: June 30, 2015 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 4,738 $ 138 $ 81 $ 347 $ 5,028 $ 1,760 $ 3,268 Farmland 102 - - (1 ) 101 - 101 Real Estate 623 - - (125 ) 498 24 474 Multi-Family 95 - - - 95 - 95 Commercial Real Estate 126 - 28 (71 ) 83 6 77 Home Equity – closed end 188 24 - 11 175 - 175 Home Equity – open end 154 25 - 16 145 - 145 Commercial & Industrial – Non-Real Estate 1,014 - 56 (138 ) 932 - 932 Consumer 214 17 16 10 223 - 223 Dealer Finance 1,336 86 16 250 1,516 14 1,502 Credit Cards 135 41 23 1 118 - 118 Total $ 8,725 $ 331 $ 220 $ 300 $ 8,914 $ 1,804 $ 7,110 December 31, 2014 Beginning Balance Charge-offs Recoveries Provision Ending Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 4,007 $ 1,611 $ 223 $ 2,119 $ 4,738 $ 1,469 $ 3,269 Farmland (2 ) - - 104 102 - 102 Real Estate 400 208 - 431 623 101 522 Multi-Family - - - 95 95 - 95 Commercial Real Estate 777 - 108 (759 ) 126 47 79 Home Equity – closed end 157 - - 31 188 - 188 Home Equity – open end 476 80 - (242 ) 154 - 154 Commercial & Industrial – Non-Real Estate 1,464 385 356 (421 ) 1,014 - 1,014 Consumer 156 33 33 58 214 - 214 Dealer Finance 628 107 6 809 1,336 - 1,336 Credit Cards 121 46 35 25 135 - 135 Total $ 8,184 $ 2,470 $ 761 $ 2,250 $ 8,725 $ 1,617 $ 7,108 |
Recorded Investment in Loan Receivables | Recorded Investment in Loan Receivables (in thousands) June 30, 2015 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 68,590 $ 16,186 $ 52,404 Farmland 12,844 - 12,844 Real Estate 164,863 1,812 163,051 Multi-Family 12,104 - 12,104 Commercial Real Estate 124,635 2,016 122,619 Home Equity – closed end 9,329 - 9,329 Home Equity –open end 52,347 1,547 50,800 Commercial & Industrial – Non-Real Estate 28,435 186 28,249 Consumer 8,145 - 8,145 Dealer Finance 49,002 63 48,939 Credit Cards 2,511 - 2,511 $ 532,805 $ 21,810 $ 510,995 Total December 31, 2014 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 67,181 $ 17,958 $ 49,223 Farmland 12,507 - 12,507 Real Estate 162,249 1,067 161,182 Multi-Family 11,775 - 11,775 Commercial Real Estate 122,305 2,097 120,208 Home Equity – closed end 9,394 - 9,394 Home Equity –open end 52,182 1,649 50,533 Commercial & Industrial – Non-Real Estate 28,161 191 27,970 Consumer 9,110 - 9,110 Dealer Finance 40,633 40,633 Credit Cards 2,705 - 2,705 $ 518,202 $ 22,962 $ 495,240 Total |
Schedule of Aging of Past Due Receivables | Aging of Past Due Loans Receivable (in thousands) as of June 30, 2015 30-59 Days Past due 60-89 Days Past Due Greater than 90 Days (excluding non-accrual) Non-Accrual Loans Total Past Due Current Total Loan Receivable June 30, 2015 Construction/Land Development $ 41 $ 337 $ - $ 4,536 $ 4,914 $ 63,676 $ 68,590 Farmland - - - - - 12,844 12,844 Real Estate 2,740 1,357 - 1,257 5,354 159,509 164,863 Multi-Family - - - - - 12,104 12,104 Commercial Real Estate 1,963 105 - 1,047 3,115 121,520 124,635 Home Equity – closed end 35 - - - 35 9,294 9,329 Home Equity – open end 126 25 136 115 402 51,945 52,347 Commercial & Industrial – Non- Real Estate 96 5 - - 101 28,334 28,435 Consumer 90 44 13 - 147 7,998 8,145 Dealer Finance 631 122 117 77 947 48,055 49,002 Credit Cards 4 6 1 - 11 2,500 2,511 Total $ 5,726 $ 2,001 $ 267 $ 7,032 $ 15,026 $ 517,779 $ 532,805 Aging of Past Due Loans Receivable (in thousands) as of December 31, 2014 30-59 Days Past due 60-89 Days Past Due Greater than 90 Days (excluding non-accrual) Non-Accrual Loans Total Past Due Current Total Loan Receivable December 31, 2014 Construction/Land Development $ 205 $ 166 $ - $ 4,508 $ 4,879 $ 62,302 $ 67,181 Farmland - - - - - 12,507 12,507 Real Estate 5,085 635 - 973 6,693 155,556 162,249 Multi-Family - - - - - 11,775 11,775 Commercial Real Estate 747 - - 1,165 1,912 120,393 122,305 Home Equity – closed end 162 15 - 10 187 9,207 9,394 Home Equity – open end 730 25 - 143 898 51,284 52,182 Commercial & Industrial – Non- Real Estate - - - 14 14 28,147 28,161 Consumer 290 9 - - 299 8,811 9,110 Dealer Finance 696 189 - 161 1,046 39,587 40,633 Credit Cards 36 - 1 - 37 2,668 2,705 Total $ 7,951 $ 1,039 $ 1 $ 6,974 $ 15,965 $ 502,237 $ 518,202 |
Corporate Credit Exposure | CREDIT QUALITY INDICATORS (in thousands) AS OF JUNE 30, 2015 Corporate Credit Exposure Credit Risk Profile by Creditworthiness Category Grade 1 Minimal Risk Grade 2 Modest Risk Grade 3 Average Risk Grade 4 Acceptable Risk Grade 5 Marginally Acceptable Grade 6 Watch Grade 7 Substandard Grade 8 Doubtful Total Construction/Land Development $ - $ 370 $ 8,390 $ 28,823 $ 9,084 $ 5,227 $ 16,696 $ - $ 68,590 Farmland 67 - 1,995 3,721 4,969 - 2,092 - 12,844 Real Estate - 799 55,609 74,765 22,617 8,126 2,947 - 164,863 Multi-Family - 430 4,059 3,105 4,510 - - 12,104 Commercial Real Estate - 1,763 26,312 67,024 17,802 9,828 1,906 - 124,635 Home Equity – closed end - - 3,856 3,592 1,609 178 94 - 9,329 Home Equity – open end - 1,631 13,875 28,462 4,009 234 4,136 - 52,347 Commercial & Industrial (Non-Real Estate) 578 54 5,958 17,725 3,360 757 3 - 28,435 Total $ 645 $ 5,047 $ 120,054 $ 227,217 $ 67,960 $ 24,350 $ 27,874 $ - $ 473,147 CREDIT QUALITY INDICATORS (in thousands) AS OF DECEMBER 31, 2014 Corporate Credit Exposure Credit Risk Profile by Creditworthiness Category Grade 1 Minimal Risk Grade 2 Modest Risk Grade 3 Average Risk Grade 4 Acceptable Risk Grade 5 Marginally Acceptable Grade 6 Watch Grade 7 Substandard Grade 8 Doubtful Total Construction/Land Development $ - $ 165 $ 8,460 $ 24,227 $ 9,605 $ 3,815 $ 20,909 $ - $ 67,181 Farmland 68 - 1,640 3,451 5,228 - 2,120 - 12,507 Real Estate - 629 60,290 66,464 23,934 7,083 3,849 - 162,249 Multi-Family - 468 4,145 2,183 4,979 - - - 11,775 Commercial Real Estate - 1,687 22,800 65,653 19,058 10,571 2,536 - 122,305 Home Equity – closed end - - 4,327 3,090 1,812 154 11 - 9,394 Home Equity – open end - 1,555 13,433 28,425 4,309 1,936 2,524 - 52,182 Commercial & Industrial (Non-Real Estate) 643 74 4,692 18,039 3,948 735 30 - 28,161 Total $ 711 $ 4,578 $ 119,787 $ 211,532 $ 72,873 $ 24,294 $ 31,979 $ - $ 465,754 |
Consumer Credit Exposure | Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Credit Cards Consumer Performing $ 2,510 $ 57,017 Non performing 1 130 Total $ 2,511 $ 57,147 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Credit Cards Consumer Performing $ 2,704 $ 49,582 Non performing 1 161 Total $ 2,705 $ 49,743 |
5. Employee Benefit Plan (Table
5. Employee Benefit Plan (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
EmployeeBenefitPlanTablesAbstract | |
Schedule of Employee Benefit Plan | The following is a summary of net periodic pension costs for the six-month and three-month periods ended June 30, 2015 and 2014. Six Months Ended Three Months Ended June 30, 2015 June 30, 2014 June 30, 2015 June 30, 2014 Service cost $ 324,167 $ 250,514 $ 162,084 $ 125,257 Interest cost 205,472 188,854 102,736 94,427 Expected return on plan assets (419,409 ) (349,126 ) (209,705 ) (174,563 ) Amortization of net obligation at transition - - - - Amortization of prior service cost (7,618 ) (7,618 ) (3,809 ) (3,809 ) Amortization of net (gain) or loss 90,321 18,056 45,161 9,028 Net periodic pension cost $ 192,933 $ 100,680 $ 96,467 $ 50,340 |
6. Fair Value (Tables)
6. Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Tables | |
Fair value measurements | For level 3 assets and liabilities measured at fair value on a recurring basis or non-recurring basis as of June 30, 2015 and December 31, 2014 and significant unobservable inputs used in the fair value measurements were as follows: Fair Value at June 30, 2015 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 12,633 Discounted appraised value Discount for selling costs and age of appraisals 15%-55 % Other Real Estate Owned $ 2,445 Discounted appraised value Discount for selling costs and age of appraisals 15%-55 % Fair Value at December 31, 2014 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 13,223 Discounted appraised value Discount for selling costs and age of appraisals 15%-55 % Other Real Estate Owned $ 3,507 Discounted appraised value Discount for selling costs and age of appraisals 15%-55 % |
Schedule Assets and Liabilities at Fair Value on Recurring Basis | The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis. June 30, 2015 Total Level 1 Level 2 Level 3 U. S. Treasuries $ 4,042 $ - $ 4,042 $ - Government sponsored enterprises 8,144 - 8,144 - Mortgage-backed securities 925 - 925 - Marketable Equities 135 - 135 - Investment securities available for sale 13,246 - 13,246 - Total assets at fair value $ 13,246 $ - $ 13,246 $ - Total liabilities at fair value $ - $ - $ - $ - Derivative financial instruments at fair value $ 38 $ - $ 38 $ - December 31, 2014 Total Level 1 Level 2 Level 3 U. S. Treasuries $ 4,020 $ - $ 4,020 $ - Government sponsored enterprises 8,038 - 8,038 - Mortgage-backed securities 1,022 - 1,022 - Marketable Equities 135 - 135 - Investment securities available for sale 13,215 - 13,215 - Total assets at fair value $ 13,215 $ - $ 13,215 $ - Total liabilities at fair value $ - $ - $ - $ - Derivative financial instruments at fair value $ 33 $ - $ 33 $ - |
Schedule of Assets and Liabilities at Fair Value on Non-recurring Basis | The table below presents the recorded amount of assets and liabilities measured at fair value on a non-recurring basis. The Company has determined that Other Real Estate Owned and Impaired Loans are Level 3. June 30, 2015 Total Level 1 Level 2 Level 3 Other Real Estate Owned $ 2,445 - - $ 2,445 - - Construction/Land Development 11,163 - - 11,163 Farmland - - - - Real Estate 547 - - 547 Multi-Family - - - - Commercial Real Estate 874 - - 874 Home Equity – closed end - - - - Home Equity – open end - - - - Commercial & Industrial – Non-Real Estate - - - - Consumer - - - - Credit cards - - - - Dealer Finance 49 - - 49 Impaired loans 12,633 - - 12,633 Total assets at fair value $ 15,078 $ - $ - $ 15,078 Total liabilities at fair value $ - $ - $ - $ - December 31, 2014 Total Level 1 Level 2 Level 3 Other Real Estate Owned $ 3,507 - - $ 3,507 - - Construction/Land Development 11,507 - - 11,507 Farmland - - - - Real Estate 825 - - 825 Multi-Family - - - - Commercial Real Estate 891 - - 891 Home Equity – closed end - - - - Home Equity – open end - - - - Commercial & Industrial – Non-Real Estate - - - - Consumer - - - - Credit cards - - - - Dealer Finance - - - - Impaired loans 13,223 - - 13,223 Total assets at fair value $ 16,730 - $ - $ 16,730 Total liabilities at fair value $ - $ - $ - $ - |
7. Disclosures About Fair Val24
7. Disclosures About Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosures About Fair Value Of Financial Instruments Tables | |
Carrying Value and Estimated Fair Value for Financial Instruments | June 30, 2015 December 31, 2014 Estimated Carrying Estimated Carrying Fair Value Value Fair Value Value Financial Assets Loans $ 557,660 $ 532,805 $ 551,338 $ 518,202 Financial Liabilities Time deposits 177,093 175,567 196,826 195,464 Long-term debt 24,817 24,321 9,862 9,875 |
8. Troubled Debt Restructuring
8. Troubled Debt Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Asset Types | |
Troubled debt restructuring | Six Months ended June 30, 2015 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Real Estate 4 $ 2,724 $ 2,724 Consumer 4 43 43 Total 8 $ 2,767 $ 2,767 Three Months ended June 30, 2015 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Real Estate 4 $ 2,724 $ 2,724 Consumer 1 6 6 Total 5 $ 2,730 $ 2,730 |
1. Accounting Principles (Detai
1. Accounting Principles (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Available to Common Stockholders: | ||||
Net Income | $ 2,176 | $ 1,484 | $ 4,047 | $ 2,667 |
Preferred Stock Dividends | 127 | 255 | ||
Net Income Available to Common Stockholders | $ 2,049 | $ 1,484 | $ 3,792 | $ 2,667 |
1. Accounting Principles (Det27
1. Accounting Principles (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Principles | ||||
Basic EPS, Income | $ 2,049 | $ 1,484 | $ 3,792 | $ 2,667 |
Effect of Dilutive Securities Convertible Preferred Stock, Income | 127 | 255 | ||
Diluted EPS, Income | $ 2,176 | $ 1,484 | $ 4,047 | $ 2,667 |
Basic EPS, Shares | 3,294,365 | 3,288,277 | 3,293,510 | 2,945,363 |
Effect of Dilutive Securities Convertible Preferred Stock, Shares | 444,400 | 444,400 | ||
Diluted EPS, Shares | 3,738,765 | 3,288,277 | 3,737,910 | 2,945,363 |
Basic EPS, Shares | $ 0.62 | $ 0.45 | $ 1.15 | $ 0.91 |
Effect of Dilutive Securities Convertible Preferred Stock, Shares | (0.04) | (0.07) | ||
Diluted EPS, Shares | $ 0.58 | $ 0.45 | $ 1.08 | $ 0.91 |
2. Investment Securities (Detai
2. Investment Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Available-for-Sale Securities | ||
Cost | $ 13,220 | $ 13,211 |
Unrealized Gains | 42 | 20 |
Unrealized Losses | 16 | 16 |
Market Value | 13,246 | 13,215 |
Held-to-Maturity Securities | ||
Amortized Cost - Held-to-Maturity | 125 | 125 |
Market Value - Held-to-Maturity | 125 | 125 |
U. S. Treasury and agency obligations [Member] | ||
Held-to-Maturity Securities | ||
Amortized Cost - Held-to-Maturity | 125 | 125 |
Market Value - Held-to-Maturity | 125 | 125 |
U. S. Treasury | ||
Available-for-Sale Securities | ||
Cost | 4,021 | $ 4,026 |
Unrealized Gains | $ 21 | |
Unrealized Losses | $ 6 | |
Market Value | $ 4,042 | 4,020 |
Government sponsored enterprises [Member] | ||
Available-for-Sale Securities | ||
Cost | 8,149 | 8,039 |
Unrealized Gains | 11 | 9 |
Unrealized Losses | 16 | 10 |
Market Value | 8,144 | 8,038 |
Mortgage Backed Securities [Member] | ||
Available-for-Sale Securities | ||
Cost | 915 | 1,011 |
Unrealized Gains | $ 10 | $ 11 |
Unrealized Losses | ||
Market Value | $ 925 | $ 1,022 |
Marketable equities [Member] | ||
Available-for-Sale Securities | ||
Cost | $ 135 | $ 135 |
Unrealized Gains | ||
Unrealized Losses | ||
Market Value | $ 135 | $ 135 |
2. Investment Securities (Det29
2. Investment Securities (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Total, Amortized Cost | $ 125 | $ 125 |
Total, Fair Value | $ 125 | $ 125 |
Held to maturity Securities [Member] | ||
Due in one year or less, Amortized Cost | ||
Due after one year through five years, Amortized Cost | $ 125 | |
Due after five years, Amortized Cost | ||
Due in one year or less, Fair Value | ||
Due after one year through five years, Fair Value | $ 125 | |
Due after five years, Fair Value | ||
Total, Amortized Cost | $ 125 | |
Total, Fair Value | $ 125 | |
Available for sale Securities [Member] | ||
Due in one year or less, Amortized Cost | ||
Due after one year through five years, Amortized Cost | $ 12,170 | |
Due after five years, Amortized Cost | $ 1,050 | |
Due in one year or less, Fair Value | ||
Due after one year through five years, Fair Value | $ 12,186 | |
Due after five years, Fair Value | 1,060 | |
Total, Amortized Cost | 13,220 | |
Total, Fair Value | $ 13,246 |
2. Investment securities (Det30
2. Investment securities (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value Less than 12 Months | $ 2,000 | $ 6,024 |
Unrealized Losses Less than 12 Months | $ (16) | (8) |
Fair Value More than 12 Months | 1,991 | |
Unrealized Losses More than 12 Months | (8) | |
Fair Value Total | $ 2,000 | 8,015 |
Unrealized Losses Total | (16) | (16) |
Government sponsored enterprises [Member] | ||
Fair Value Less than 12 Months | 2,000 | 2,004 |
Unrealized Losses Less than 12 Months | $ (16) | (2) |
Fair Value More than 12 Months | 1,991 | |
Unrealized Losses More than 12 Months | (8) | |
Fair Value Total | $ 2,000 | 3,995 |
Unrealized Losses Total | $ (16) | (10) |
U. S. Treasury | ||
Fair Value Less than 12 Months | 4,020 | |
Unrealized Losses Less than 12 Months | $ (6) | |
Fair Value More than 12 Months | ||
Unrealized Losses More than 12 Months | ||
Fair Value Total | $ 4,020 | |
Unrealized Losses Total | $ (6) |
3. Loans Held for Investment (D
3. Loans Held for Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Loans outstanding | $ 532,805 | $ 518,202 |
Construction/Land Development [Member] | ||
Loans outstanding | 68,590 | 67,181 |
Farmland [Member] | ||
Loans outstanding | 12,844 | 12,507 |
Real Estate [Member] | ||
Loans outstanding | 164,863 | 162,249 |
Multi-Family [Member] | ||
Loans outstanding | 12,104 | 11,775 |
Commercial Real Estate [Member] | ||
Loans outstanding | 124,635 | 122,305 |
Home Equity - Closed End [Member] | ||
Loans outstanding | 9,329 | 9,394 |
Home Equity - Open End [Member] | ||
Loans outstanding | 52,347 | 52,182 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Loans outstanding | 28,435 | 28,161 |
Consumer [Member] | ||
Loans outstanding | 8,145 | 9,110 |
Dealer Finance [Member] | ||
Loans outstanding | 49,002 | 40,633 |
Credit Cards [Member] | ||
Loans outstanding | $ 2,511 | $ 2,705 |
3. Loans Held for Investment 32
3. Loans Held for Investment (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 7,373 | $ 8,122 |
Unpaid Principal Balance | $ 7,511 | $ 8,842 |
Related Allowance | ||
Average Recorded Investment | $ 7,641 | $ 8,800 |
Interest Income Recognized | 236 | 390 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 14,437 | 14,840 |
Unpaid Principal Balance | 14,437 | 16,613 |
Related Allowance | 1,804 | 1,617 |
Average Recorded Investment | 14,969 | 14,186 |
Interest Income Recognized | 214 | 435 |
Recorded Investment | 21,810 | 22,962 |
Unpaid Principal Balance | 21,948 | 25,455 |
Related Allowance | 1,804 | 1,617 |
Average Recorded Investment | 22,610 | 22,986 |
Interest Income Recognized | 450 | 825 |
Construction/Land Development [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 3,263 | 4,982 |
Unpaid Principal Balance | $ 3,401 | $ 5,402 |
Related Allowance | ||
Average Recorded Investment | $ 4,678 | $ 5,412 |
Interest Income Recognized | 92 | 251 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 12,923 | 12,976 |
Unpaid Principal Balance | 12,923 | 14,749 |
Related Allowance | 1,760 | 1,469 |
Average Recorded Investment | 13,142 | 12,056 |
Interest Income Recognized | $ 191 | $ 326 |
Farmland [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | $ 1,163 | |
Interest Income Recognized | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Real Estate [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 1,241 | $ 141 |
Unpaid Principal Balance | $ 1,241 | $ 141 |
Related Allowance | ||
Average Recorded Investment | $ 342 | $ 85 |
Interest Income Recognized | 36 | 5 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 571 | 926 |
Unpaid Principal Balance | 571 | 926 |
Related Allowance | 24 | 101 |
Average Recorded Investment | 850 | 988 |
Interest Income Recognized | $ 18 | $ 105 |
Multi-Family [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Commercial Real Estate [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 1,136 | $ 1,159 |
Unpaid Principal Balance | $ 1,136 | $ 1,459 |
Related Allowance | ||
Average Recorded Investment | $ 1,445 | $ 1,450 |
Interest Income Recognized | 30 | 66 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 880 | 938 |
Unpaid Principal Balance | 880 | 938 |
Related Allowance | 6 | 47 |
Average Recorded Investment | 952 | 1,030 |
Interest Income Recognized | $ 2 | $ 4 |
Home Equity - Closed End [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | $ 123 | |
Interest Income Recognized | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | $ 72 | |
Interest Income Recognized | ||
Home Equity - Open End [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 1,547 | $ 1,649 |
Unpaid Principal Balance | $ 1,547 | $ 1,649 |
Related Allowance | ||
Average Recorded Investment | $ 969 | $ 330 |
Interest Income Recognized | $ 72 | $ 57 |
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | $ 40 | |
Interest Income Recognized | ||
Commercial & Industrial - Non-Real Estate [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 186 | $ 191 |
Unpaid Principal Balance | $ 186 | $ 191 |
Related Allowance | ||
Average Recorded Investment | $ 207 | $ 237 |
Interest Income Recognized | $ 6 | $ 11 |
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Consumer [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Credit Cards [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Dealer Finance [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | $ 63 | |
Unpaid Principal Balance | 63 | |
Related Allowance | 14 | |
Average Recorded Investment | 25 | |
Interest Income Recognized | $ 3 |
4. Allowance for Loan Losses (D
4. Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Beginning Balance | $ 8,725 | $ 8,184 |
Charge-offs | 331 | 2,470 |
Recoveries | 220 | 761 |
Provision | 300 | 2,250 |
Ending Balance | 8,914 | 8,725 |
Individually Evaluated for Impairment | 1,804 | 1,617 |
Collectively Evaluated for Impairment | 7,110 | 7,108 |
Construction/Land Development [Member] | ||
Beginning Balance | 4,738 | 4,007 |
Charge-offs | 138 | 1,611 |
Recoveries | 81 | 223 |
Provision | 347 | 2,119 |
Ending Balance | 5,028 | 4,738 |
Individually Evaluated for Impairment | 1,760 | 1,469 |
Collectively Evaluated for Impairment | 3,268 | 3,269 |
Farmland [Member] | ||
Beginning Balance | $ 102 | $ (2) |
Charge-offs | ||
Recoveries | ||
Provision | $ (1) | $ 104 |
Ending Balance | $ 101 | $ 102 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 101 | $ 102 |
Real Estate [Member] | ||
Beginning Balance | $ 623 | 400 |
Charge-offs | $ 208 | |
Recoveries | ||
Provision | $ (125) | $ 431 |
Ending Balance | 498 | 623 |
Individually Evaluated for Impairment | 24 | 101 |
Collectively Evaluated for Impairment | 474 | $ 522 |
Multi-Family [Member] | ||
Beginning Balance | $ 95 | |
Charge-offs | ||
Recoveries | ||
Provision | $ 95 | |
Ending Balance | $ 95 | $ 95 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 95 | $ 95 |
Commercial Real Estate [Member] | ||
Beginning Balance | $ 126 | $ 777 |
Charge-offs | ||
Recoveries | $ 28 | $ 108 |
Provision | (71) | (759) |
Ending Balance | 83 | 126 |
Individually Evaluated for Impairment | 6 | 47 |
Collectively Evaluated for Impairment | 77 | 79 |
Home Equity - Closed End [Member] | ||
Beginning Balance | 188 | $ 157 |
Charge-offs | $ 24 | |
Recoveries | ||
Provision | $ 11 | $ 31 |
Ending Balance | $ 175 | $ 188 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 175 | $ 188 |
Home Equity - Open End [Member] | ||
Beginning Balance | 154 | 476 |
Charge-offs | $ 25 | $ 80 |
Recoveries | ||
Provision | $ 16 | $ (242) |
Ending Balance | $ 145 | $ 154 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 145 | $ 154 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Beginning Balance | $ 1,014 | 1,464 |
Charge-offs | 385 | |
Recoveries | $ 56 | 356 |
Provision | (138) | (424) |
Ending Balance | $ 932 | $ 1,014 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 932 | $ 1,014 |
Consumer [Member] | ||
Beginning Balance | 214 | 156 |
Charge-offs | 17 | 33 |
Recoveries | 16 | 33 |
Provision | 10 | 58 |
Ending Balance | $ 223 | $ 214 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 223 | $ 214 |
Dealer Finance [Member] | ||
Beginning Balance | 1,336 | 628 |
Charge-offs | 86 | 107 |
Recoveries | 16 | 6 |
Provision | 250 | 809 |
Ending Balance | 1,516 | $ 1,336 |
Individually Evaluated for Impairment | 14 | |
Collectively Evaluated for Impairment | 1,502 | $ 1,336 |
Credit Cards [Member] | ||
Beginning Balance | 135 | 121 |
Charge-offs | 41 | 46 |
Recoveries | 23 | 35 |
Provision | 1 | 25 |
Ending Balance | $ 118 | $ 135 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 118 | $ 135 |
4. Allowance for Loan Losses 34
4. Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Loan Receivable | $ 532,805 | $ 518,202 |
Individually Evaluated for Impairment | 21,810 | 22,962 |
Collectively Evaluated for Impairment | 510,995 | 495,240 |
Construction/Land Development [Member] | ||
Loan Receivable | 68,590 | 67,181 |
Individually Evaluated for Impairment | 16,186 | 17,958 |
Collectively Evaluated for Impairment | 52,404 | 49,223 |
Farmland [Member] | ||
Loan Receivable | $ 12,844 | $ 12,507 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 12,844 | $ 12,507 |
Real Estate [Member] | ||
Loan Receivable | 164,863 | 162,249 |
Individually Evaluated for Impairment | 1,812 | 1,067 |
Collectively Evaluated for Impairment | 163,051 | 161,182 |
Multi-Family [Member] | ||
Loan Receivable | $ 12,104 | $ 11,775 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 12,104 | $ 11,775 |
Commercial Real Estate [Member] | ||
Loan Receivable | 124,635 | 122,305 |
Individually Evaluated for Impairment | 2,016 | 2,097 |
Collectively Evaluated for Impairment | 122,619 | 120,208 |
Home Equity - Closed End [Member] | ||
Loan Receivable | $ 9,329 | $ 9,394 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 9,329 | $ 9,394 |
Home Equity - Open End [Member] | ||
Loan Receivable | 52,347 | 52,182 |
Individually Evaluated for Impairment | 1,547 | 1,649 |
Collectively Evaluated for Impairment | 50,800 | 50,533 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Loan Receivable | 28,435 | 28,161 |
Individually Evaluated for Impairment | 186 | 191 |
Collectively Evaluated for Impairment | 28,249 | 27,970 |
Consumer [Member] | ||
Loan Receivable | $ 8,145 | $ 9,110 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 8,145 | $ 9,110 |
Dealer Finance [Member] | ||
Loan Receivable | 49,002 | 40,633 |
Individually Evaluated for Impairment | 63 | |
Collectively Evaluated for Impairment | 48,939 | 40,633 |
Credit Cards [Member] | ||
Loan Receivable | $ 2,511 | $ 2,705 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 2,511 | $ 2,705 |
4. Allowance for Loan Losses 35
4. Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
30-59 Days Past due | $ 5,726 | $ 7,951 |
60-89 Days Past due | 2,001 | 1,039 |
Greater than 90 Days (excluding non-accrual) | 267 | 1 |
Non-Accrual Loans | 7,032 | 6,974 |
Total past due | 15,026 | 15,965 |
Current | 517,779 | 502,237 |
Total Loans Receivable | 532,805 | 518,202 |
Construction/Land Development [Member] | ||
30-59 Days Past due | 41 | 205 |
60-89 Days Past due | $ 337 | $ 166 |
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | $ 4,536 | $ 4,508 |
Total past due | 4,914 | 4,879 |
Current | 63,676 | 62,302 |
Total Loans Receivable | $ 68,590 | $ 67,181 |
Farmland [Member] | ||
30-59 Days Past due | ||
60-89 Days Past due | ||
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | ||
Total past due | ||
Current | $ 12,844 | $ 12,507 |
Total Loans Receivable | 12,844 | 12,507 |
Real Estate [Member] | ||
30-59 Days Past due | 2,740 | 5,085 |
60-89 Days Past due | $ 1,357 | $ 635 |
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | $ 1,257 | $ 973 |
Total past due | 5,354 | 6,693 |
Current | 159,509 | 155,556 |
Total Loans Receivable | $ 164,863 | $ 162,249 |
Multi-Family [Member] | ||
30-59 Days Past due | ||
60-89 Days Past due | ||
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | ||
Total past due | ||
Current | $ 12,104 | $ 11,775 |
Total Loans Receivable | 12,104 | 11,775 |
Commercial Real Estate [Member] | ||
30-59 Days Past due | 1,963 | $ 747 |
60-89 Days Past due | $ 105 | |
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | $ 1,047 | $ 1,165 |
Total past due | 3,115 | 1,912 |
Current | 121,520 | 120,393 |
Total Loans Receivable | 124,635 | 122,305 |
Home Equity - Closed End [Member] | ||
30-59 Days Past due | $ 35 | 162 |
60-89 Days Past due | $ 15 | |
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | $ 10 | |
Total past due | $ 35 | 187 |
Current | 9,294 | 9,207 |
Total Loans Receivable | 9,329 | 9,394 |
Home Equity - Open End [Member] | ||
30-59 Days Past due | 126 | 730 |
60-89 Days Past due | 25 | $ 25 |
Greater than 90 Days (excluding non-accrual) | 136 | |
Non-Accrual Loans | 115 | $ 143 |
Total past due | 402 | 898 |
Current | 51,945 | 51,284 |
Total Loans Receivable | 52,347 | $ 52,182 |
Commercial & Industrial - Non-Real Estate [Member] | ||
30-59 Days Past due | 96 | |
60-89 Days Past due | $ 5 | |
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | $ 14 | |
Total past due | $ 101 | 14 |
Current | 28,334 | 28,147 |
Total Loans Receivable | 28,435 | 28,161 |
Consumer [Member] | ||
30-59 Days Past due | 90 | 290 |
60-89 Days Past due | 44 | $ 9 |
Greater than 90 Days (excluding non-accrual) | $ 13 | |
Non-Accrual Loans | ||
Total past due | $ 147 | $ 299 |
Current | 7,998 | 8,811 |
Total Loans Receivable | 8,145 | 9,110 |
Dealer Finance [Member] | ||
30-59 Days Past due | 631 | 696 |
60-89 Days Past due | 122 | $ 189 |
Greater than 90 Days (excluding non-accrual) | 117 | |
Non-Accrual Loans | 77 | $ 161 |
Total past due | 947 | 1,046 |
Current | 48,055 | 39,587 |
Total Loans Receivable | 49,002 | 40,633 |
Credit Cards [Member] | ||
30-59 Days Past due | 4 | $ 36 |
60-89 Days Past due | 6 | |
Greater than 90 Days (excluding non-accrual) | $ 1 | $ 1 |
Non-Accrual Loans | ||
Total past due | $ 11 | $ 37 |
Current | 2,500 | 2,668 |
Total Loans Receivable | $ 2,511 | $ 2,705 |
4. Allowance for Loan Losses 36
4. Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Construction/Land Development | $ 68,590 | $ 67,181 |
Farmland | 12,844 | 12,507 |
Real Estate | 164,863 | 162,249 |
Multi-Family | 12,104 | 11,775 |
Commercial Real Estate | 124,635 | 122,305 |
Home Equity - closed end | 9,329 | 9,394 |
Home Equity - open end | 52,347 | 52,182 |
Commercial & Industrial (Non-Real Estate) | 28,435 | 28,161 |
Total | $ 473,147 | $ 465,754 |
Grade 1 Minimal Risk [Member] | ||
Construction/Land Development | ||
Farmland | $ 67 | $ 68 |
Real Estate | ||
Multi-Family | ||
Commercial Real Estate | ||
Home Equity - closed end | ||
Home Equity - open end | ||
Commercial & Industrial (Non-Real Estate) | $ 578 | $ 643 |
Total | 645 | 711 |
Grade 2 Modest Risk [Member] | ||
Construction/Land Development | $ 370 | $ 165 |
Farmland | ||
Real Estate | $ 799 | $ 629 |
Multi-Family | 430 | 468 |
Commercial Real Estate | $ 1,763 | $ 1,687 |
Home Equity - closed end | ||
Home Equity - open end | $ 1,631 | $ 1,555 |
Commercial & Industrial (Non-Real Estate) | 54 | 74 |
Total | 5,047 | 4,578 |
Grade 3 Average Risk [Member] | ||
Construction/Land Development | 8,390 | 8,460 |
Farmland | 1,995 | 1,640 |
Real Estate | 55,609 | 60,290 |
Multi-Family | 4,059 | 4,145 |
Commercial Real Estate | 26,312 | 22,800 |
Home Equity - closed end | 3,856 | 4,327 |
Home Equity - open end | 13,875 | 13,433 |
Commercial & Industrial (Non-Real Estate) | 5,958 | 4,692 |
Total | 120,054 | 119,787 |
Grade 4 Acceptable Risk [Member] | ||
Construction/Land Development | 28,823 | 24,227 |
Farmland | 3,721 | 3,451 |
Real Estate | 74,765 | 66,464 |
Multi-Family | 3,105 | 2,183 |
Commercial Real Estate | 67,024 | 65,653 |
Home Equity - closed end | 3,592 | 3,090 |
Home Equity - open end | 28,462 | 28,425 |
Commercial & Industrial (Non-Real Estate) | 17,725 | 18,039 |
Total | 227,217 | 211,532 |
Grade 5 Marginally Acceptable [Member] | ||
Construction/Land Development | 9,084 | 9,605 |
Farmland | 4,969 | 5,228 |
Real Estate | 22,617 | 23,934 |
Multi-Family | 4,510 | 4,979 |
Commercial Real Estate | 17,802 | 19,058 |
Home Equity - closed end | 1,609 | 1,812 |
Home Equity - open end | 4,009 | 4,309 |
Commercial & Industrial (Non-Real Estate) | 3,360 | 3,948 |
Total | 67,960 | 72,873 |
Grade 6 Watch [Member] | ||
Construction/Land Development | $ 5,227 | $ 3,815 |
Farmland | ||
Real Estate | $ 8,126 | $ 7,083 |
Multi-Family | ||
Commercial Real Estate | 9,828 | $ 10,571 |
Home Equity - closed end | 178 | 154 |
Home Equity - open end | 234 | 1,936 |
Commercial & Industrial (Non-Real Estate) | 757 | 735 |
Total | 24,350 | 24,294 |
Grade 7 Substandard [Member] | ||
Construction/Land Development | 16,696 | 20,909 |
Farmland | 2,092 | 2,120 |
Real Estate | $ 2,947 | $ 3,849 |
Multi-Family | ||
Commercial Real Estate | $ 1,906 | $ 2,536 |
Home Equity - closed end | 94 | 11 |
Home Equity - open end | 4,136 | 2,524 |
Commercial & Industrial (Non-Real Estate) | 3 | 30 |
Total | $ 27,874 | $ 31,979 |
Grade 8 Doubtful [Member] | ||
Construction/Land Development | ||
Farmland | ||
Real Estate | ||
Multi-Family | ||
Commercial Real Estate | ||
Home Equity - closed end | ||
Home Equity - open end | ||
Commercial & Industrial (Non-Real Estate) | ||
Total |
4. Allowance for Loan Losses 37
4. Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Credit cards | $ 2,511 | $ 2,705 |
Consumer | 57,147 | 49,743 |
Performing [Member] | ||
Credit cards | 2,510 | 2,704 |
Consumer | 57,017 | 49,582 |
Non performing [Member] | ||
Credit cards | 1 | 1 |
Consumer | $ 130 | $ 161 |
5. Employee Benefit Plan (Detai
5. Employee Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Benefit Plan Details | ||||
Service cost | $ 162,084 | $ 125,257 | $ 324,167 | $ 250,514 |
Interest cost | 102,736 | 94,427 | 205,472 | 188,854 |
Expected return on plan assets | $ (209,705) | $ (174,563) | $ (419,409) | $ (349,126) |
Amortization of net obligation at transition | ||||
Amortization of prior service cost | $ (3,809) | $ (3,809) | $ (7,618) | $ (7,618) |
Amortization of net (gain) or loss | 45,161 | 9,028 | 90,321 | 18,056 |
Net periodic pension cost | $ 96,467 | $ 50,340 | $ 192,933 | $ 100,680 |
5. Employee Benefit Plan (Det39
5. Employee Benefit Plan (Details Narrative) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Employee Benefit Plan Details Narrative | |
Contribution to employee benefit plan | $ 750 |
6. Fair Value (Details)
6. Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Impaired loans | $ 12,633 | $ 13,223 |
Fair Value Inputs Level 3 [Member] | ||
Impaired loans | 12,633 | 13,223 |
Other Real Estate Owned | $ 2,445 | $ 3,507 |
Fair Value Measurements, Valuation Techniques | Discounted appraised value | Discounted appraised value |
Significant Unobservable Inputs | Discount for selling costs and age of appraisals | Discount for selling costs and age of appraisals |
Fair Value Inputs Level 3 [Member] | Minimum [Member] | ||
Fair Value Measurements, Valuation range | 15.00% | 15.00% |
Fair Value Inputs Level 3 [Member] | Maximum [Member] | ||
Fair Value Measurements, Valuation range | 55.00% | 55.00% |
6. Fair Value (Details 1)
6. Fair Value (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Total assets at fair value | $ 13,246 | $ 13,215 |
Total liabilities at fair value | ||
Derivative financial instruments at fair value | $ 38 | $ 33 |
Marketable equities [Member] | ||
Total assets at fair value | $ 135 | $ 135 |
Fair Value Inputs Level 1 [Member] | ||
Total assets at fair value | ||
Total liabilities at fair value | ||
Derivative financial instruments at fair value | ||
Fair Value Inputs Level 2 [Member] | ||
Total assets at fair value | $ 13,246 | $ 13,215 |
Total liabilities at fair value | ||
Derivative financial instruments at fair value | $ 38 | $ 33 |
Fair Value Inputs Level 3 [Member] | ||
Total assets at fair value | ||
Total liabilities at fair value | ||
Derivative financial instruments at fair value | ||
U.S. Treasury Securities [Member] | ||
Total assets at fair value | $ 4,042 | $ 4,020 |
U.S. Treasury Securities [Member] | Fair Value Inputs Level 1 [Member] | ||
Total assets at fair value | ||
U.S. Treasury Securities [Member] | Fair Value Inputs Level 2 [Member] | ||
Total assets at fair value | $ 4,042 | $ 4,020 |
U.S. Treasury Securities [Member] | Fair Value Inputs Level 3 [Member] | ||
Total assets at fair value | ||
Government Sponsored Enterprises [Member] | ||
Total assets at fair value | $ 8,144 | $ 8,038 |
Government Sponsored Enterprises [Member] | Fair Value Inputs Level 1 [Member] | ||
Total assets at fair value | ||
Government Sponsored Enterprises [Member] | Fair Value Inputs Level 2 [Member] | ||
Total assets at fair value | $ 8,144 | $ 8,038 |
Government Sponsored Enterprises [Member] | Fair Value Inputs Level 3 [Member] | ||
Total assets at fair value | ||
Mortgage Backed Obligations of Federal Agencies [Member] | ||
Total assets at fair value | $ 925 | $ 1,022 |
Mortgage Backed Obligations of Federal Agencies [Member] | Fair Value Inputs Level 1 [Member] | ||
Total assets at fair value | ||
Mortgage Backed Obligations of Federal Agencies [Member] | Fair Value Inputs Level 2 [Member] | ||
Total assets at fair value | $ 925 | $ 1,022 |
Mortgage Backed Obligations of Federal Agencies [Member] | Fair Value Inputs Level 3 [Member] | ||
Total assets at fair value | ||
Marketable equities [Member] | Fair Value Inputs Level 1 [Member] | ||
Total assets at fair value | ||
Marketable equities [Member] | Fair Value Inputs Level 2 [Member] | ||
Total assets at fair value | $ 135 | $ 135 |
Marketable equities [Member] | Fair Value Inputs Level 3 [Member] | ||
Total assets at fair value | ||
Available for sale Securities [Member] | ||
Total assets at fair value | $ 13,246 | $ 13,215 |
Available for sale Securities [Member] | Fair Value Inputs Level 1 [Member] | ||
Total assets at fair value | ||
Available for sale Securities [Member] | Fair Value Inputs Level 2 [Member] | ||
Total assets at fair value | $ 13,246 | $ 13,215 |
Available for sale Securities [Member] | Fair Value Inputs Level 3 [Member] | ||
Total assets at fair value |
6. Fair Value (Details 2)
6. Fair Value (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Impaired loans | $ 12,633 | $ 13,223 |
Total assets at fair value | $ 15,078 | $ 16,730 |
Total liabilities at fair value | ||
Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Total assets at fair value | ||
Total liabilities at fair value | ||
Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Total assets at fair value | ||
Total liabilities at fair value | ||
Fair Value Inputs Level 3 [Member] | ||
Other Real Estate Owned Loans | $ 2,445 | $ 3,507 |
Impaired loans | 12,633 | 13,223 |
Total assets at fair value | $ 15,078 | $ 16,730 |
Total liabilities at fair value | ||
Other Real Estate Owned | ||
Other Real Estate Owned Loans | $ 2,445 | $ 3,507 |
Other Real Estate Owned | Fair Value Inputs Level 1 [Member] | ||
Other Real Estate Owned Loans | ||
Other Real Estate Owned | Fair Value Inputs Level 2 [Member] | ||
Other Real Estate Owned Loans | ||
Other Real Estate Owned | Fair Value Inputs Level 3 [Member] | ||
Other Real Estate Owned Loans | $ 2,445 | $ 3,507 |
Construction/Land Development [Member] | ||
Impaired loans | $ 11,163 | $ 11,507 |
Construction/Land Development [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Construction/Land Development [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Construction/Land Development [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | $ 11,163 | $ 11,507 |
Farmland [Member] | ||
Impaired loans | ||
Farmland [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Farmland [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Farmland [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | ||
Real Estate [Member] | ||
Impaired loans | $ 547 | $ 825 |
Real Estate [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Real Estate [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Real Estate [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | $ 547 | $ 825 |
Multi-Family [Member] | ||
Impaired loans | ||
Multi-Family [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Multi-Family [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Multi-Family [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | ||
Commercial Real Estate [Member] | ||
Impaired loans | $ 874 | $ 891 |
Commercial Real Estate [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Commercial Real Estate [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Commercial Real Estate [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | $ 874 | $ 891 |
Home Equity - Closed End [Member] | ||
Impaired loans | ||
Home Equity - Closed End [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Home Equity - Closed End [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Home Equity - Closed End [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | ||
Home Equity - Open End [Member] | ||
Impaired loans | ||
Home Equity - Open End [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Home Equity - Open End [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Home Equity - Open End [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | ||
Commercial & Industrial - Non-Real Estate [Member] | ||
Impaired loans | ||
Commercial & Industrial - Non-Real Estate [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Commercial & Industrial - Non-Real Estate [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Commercial & Industrial - Non-Real Estate [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | ||
Consumer [Member] | ||
Impaired loans | ||
Consumer [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Consumer [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Consumer [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | ||
Credit Cards [Member] | ||
Impaired loans | ||
Credit Cards [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Credit Cards [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Credit Cards [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | ||
Dealer Finance [Member] | ||
Impaired loans | $ 49 | |
Dealer Finance [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Dealer Finance [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Dealer Finance [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | $ 49 |
7. Disclosures About Fair Val43
7. Disclosures About Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financial Assets | ||
Loans, Estimated Fair Value | $ 557,660 | $ 551,338 |
Loans, Carrying value | 532,805 | 518,202 |
Financial Liabilities | ||
Time deposits, Estimated Fair Value | 177,093 | 196,826 |
Time deposits, Carrying Value | 175,567 | 195,464 |
Long-term debt, Estimated Fair Value | 24,817 | 9,862 |
Long-term debt, Carrying Value | $ 24,321 | $ 9,875 |
8. Troubled Debt Restructurin44
8. Troubled Debt Restructuring (Details) - Jun. 30, 2015 $ in Thousands | USD ($)Integer | USD ($)Integer |
Number of Contracts | Integer | 5 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 2,730 | $ 2,767 |
Post-Modification Outstanding Recorded Investment | $ 2,730 | $ 2,767 |
Real Estate [Member] | ||
Number of Contracts | Integer | 4 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 2,724 | $ 2,724 |
Post-Modification Outstanding Recorded Investment | $ 2,724 | $ 2,724 |
Consumer [Member] | ||
Number of Contracts | Integer | 1 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 6 | $ 43 |
Post-Modification Outstanding Recorded Investment | $ 6 | $ 43 |