Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 12, 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 | Sep. 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 | 3,284,581 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest income | ||||
Interest and fees from loans held for investment | $ 7,086 | $ 6,665 | $ 20,813 | $ 19,443 |
Interest and fees from loans held for sale | 295 | 164 | 808 | 228 |
Interest from federal funds sold | 4 | 7 | 12 | 31 |
Interest from investment securities | 66 | 37 | 202 | 136 |
Total interest income | 7,451 | 6,873 | 21,835 | 19,838 |
Interest expense | ||||
Interest from demand deposits | 112 | 165 | 426 | 501 |
Interest from savings accounts | 64 | 31 | 134 | 88 |
Interest from time deposits over $100,000 | 122 | 145 | 367 | 453 |
Interest from other time deposits | 228 | 273 | 700 | 857 |
Total interest from deposits | 526 | 614 | 1,627 | 1,899 |
Interest from short-term debt | 24 | 2 | 54 | 6 |
Interest from long-term debt | 172 | 292 | 424 | 872 |
Total interest expense | 722 | 908 | 2,105 | 2,777 |
Net interest income | $ 6,729 | 5,965 | 19,730 | 17,061 |
Provision for loan losses | 750 | 300 | 2,250 | |
Net interest income after provision for loan losses | $ 6,729 | 5,215 | 19,430 | 14,811 |
Noninterest income | ||||
Service charges | 257 | 275 | 719 | 786 |
Insurance and other commissions | 260 | 202 | 770 | 378 |
Other | 352 | 400 | 1,037 | 1,192 |
Income from bank owned life insurance | 119 | 118 | 354 | 349 |
Total noninterest income | 988 | 995 | 2,880 | 2,705 |
Noninterest expense | ||||
Salaries | 1,974 | 1,767 | 5,667 | 5,114 |
Employee benefits | 555 | 514 | 1,718 | 1,491 |
Occupancy expense | 164 | 150 | 504 | 465 |
Equipment expense | 166 | 160 | 480 | 442 |
FDIC insurance assessment | $ 132 | $ 180 | 522 | $ 540 |
OREO expenses/losses | 516 | |||
Other | $ 1,503 | $ 1,152 | 3,965 | $ 3,410 |
Total noninterest expense | 4,494 | 3,923 | 13,372 | 11,462 |
Income before income taxes | 3,223 | 2,287 | 8,938 | 6,054 |
Income tax expense | 994 | 726 | 2,586 | 1,844 |
Consolidated net income - F&M Bank Corp. | 2,229 | 1,561 | 6,352 | 4,210 |
Net income - Noncontrolling interest (income) loss | (39) | 8 | (115) | 26 |
Net Income - F & M Bank Corp | 2,190 | $ 1,569 | 6,237 | $ 4,236 |
Dividend paid/accumulated on preferred stock | 128 | 383 | ||
Net income available to common stockholders | $ 2,062 | $ 1,569 | $ 5,854 | $ 4,236 |
Per share data | ||||
Net income available to common stockholders- basic | $ 0.63 | $ 0.48 | $ 1.78 | $ 1.38 |
Net income available to common stockholders - diluted | 0.59 | 0.48 | 1.67 | 1.38 |
Cash dividends | $ 0.18 | $ 0.17 | $ 0.54 | $ 0.51 |
Weighted average common shares outstanding - basic | 3,291,133 | 3,289,743 | 3,292,709 | 3,061,432 |
Weighted average common shares outstanding - diluted | 3,735,533 | 3,289,743 | 3,737,109 | 3,061,432 |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Interest on time deposits | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 |
Consolidated Statements of Com
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Income: | ||||
Net Income - F & M Bank Corp | $ 2,190 | $ 1,569 | $ 6,237 | $ 4,236 |
Net Income (loss) attributable to noncontrolling interest | 39 | (8) | 115 | (26) |
Consolidated Net Income | 2,229 | 1,561 | 6,352 | 4,210 |
Other comprehensive income: | ||||
Unrealized holding gains on available-for-sale securities | 21 | 25 | 44 | 20 |
Tax effect | (7) | (9) | (15) | (7) |
Unrealized holding gain, net of tax | 14 | 16 | 29 | 13 |
Total other comprehensive income | 14 | 16 | 29 | 13 |
Comprehensive income | $ 2,243 | $ 1,577 | $ 6,381 | $ 4,223 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 6,420 | $ 6,241 |
Money market funds | $ 490 | 911 |
Federal funds sold | 16,051 | |
Cash and cash equivalents | $ 6,910 | 23,203 |
Securities: | ||
Held to maturity - fair value of $125 in 2015 and $125 in 2014 | 125 | 125 |
Available for sale | 13,173 | 13,215 |
Other investments | 10,845 | 8,964 |
Loans held for sale | 55,482 | 13,382 |
Loans held for investment | 540,415 | 518,202 |
Less: allowance for loan losses | (8,870) | (8,725) |
Net loans held for investment | 531,545 | 509,477 |
Other real estate owned | 2,462 | 3,507 |
Bank premises and equipment, net | 7,369 | 6,458 |
Interest receivable | 1,655 | 1,675 |
Goodwill | 2,670 | 2,670 |
Bank owned life insurance | 12,928 | 12,581 |
Other assets | 10,937 | 10,051 |
Total assets | 656,101 | 605,308 |
Deposits: | ||
Noninterest bearing | 126,299 | 112,198 |
Interest bearing: | ||
Demand | 75,316 | 93,694 |
Money market accounts | 26,581 | 25,900 |
Savings | 86,093 | 64,249 |
Time deposits over $100,000 | 61,089 | 79,813 |
All other time deposits | 108,439 | 115,651 |
Total deposits | 483,817 | 491,505 |
Short-term debt | 38,239 | 14,358 |
Accrued liabilities | 13,314 | 11,772 |
Long-term debt | 38,893 | 9,875 |
Total liabilities | 574,263 | 527,510 |
Stockholders' Equity | ||
Preferred Stock $5 par value, 400,000 shares authorized, issued and outstanding | 9,425 | 9,425 |
Common stock, $5 par value, 6,000,000 shares authorized, 3,284,513 and 3,287,470 shares issued and outstanding | 16,423 | 16,459 |
Additional paid in capital - common stock | 11,135 | 11,260 |
Retained earnings | 46,629 | 42,554 |
Noncontrolling interest | 524 | 426 |
Accumulated other comprehensive loss | (2,298) | (2,326) |
Total stockholders' equity | 81,838 | 77,798 |
Total liabilities and stockholders' equity | $ 656,101 | $ 605,308 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 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 | 3,284,513 | 3,287,470 |
Common stock shares outstanding | 3,284,513 | 3,287,470 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 6,237 | $ 4,236 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 525 | 449 |
Amortization of security premiums, net | 109 | 61 |
Origination of loans held for sale | (56,301) | (41,385) |
Sale of loans originated and held for sale | 55,298 | 39,799 |
Provision for loan losses | 300 | 2,250 |
(Increase) Decrease in interest receivable | 20 | (38) |
Increase in other assets | (916) | (2,492) |
Increase (decrease) in accrued expenses | 1,660 | (65) |
Amortization of limited partnership investments | 470 | 456 |
Income from bank owned life insurance | (354) | (348) |
Loss on Other Real Estate Owned | 511 | 43 |
Net adjustments | 1,322 | (1,270) |
Net cash provided by operating activities | 7,559 | 2,966 |
Cash flows from investing activities | ||
Purchase of investments available for sale | (10,540) | (8,614) |
Proceeds from maturity of investments available for sale | $ 8,167 | 27,323 |
Purchase of investments held to maturity | (125) | |
Proceeds from maturity of investments held to maturity | 106 | |
Net increase in loans held for investment | $ (22,195) | (10,740) |
Net increase in participation loans held for sale | (41,098) | (32,376) |
Proceeds from the sale of other real estate owned | 361 | 779 |
Purchase of property and equipment | (1,435) | (391) |
Net cash used in investing activities | (66,740) | (24,038) |
Cash flows from financing activities | ||
Increase in demand and savings deposits | 18,248 | 22,845 |
Decrease in time deposits | (25,936) | 646 |
Increase in short-term debt | 23,881 | 361 |
Cash dividends paid | (2,161) | (1,545) |
Proceeds from issuance of common stock | 99 | $ 12,080 |
Repurchase of common stock | (261) | |
Proceeds from long-term debt | 30,000 | $ 10,000 |
Repayment of long-term debt | (982) | (6,500) |
Net cash provided by financing activities | 42,888 | 37,887 |
Net (Decrease) Increase in Cash and Cash Equivalents | (16,293) | 16,815 |
Cash and cash equivalents, beginning of period | 23,203 | 6,545 |
Cash and cash equivalents, end of period | 6,910 | 23,360 |
Supplemental disclosure | ||
Interest expense | 2,126 | 2,745 |
Income taxes | 1,500 | 1,300 |
Transfers from loans to Other Real Estate Owned | 155 | 2,930 |
Noncash exchange of other real estate owned | $ (328) | $ (780) |
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 | 4,236 |
Net income attributable to noncontrolling interest | (26) |
Net change in unrealized appreciation on securities available for sale, net of taxes | 13 |
Total comprehensive income | 4,223 |
Minority Interest Capital Distributions | 15 |
Issuance of common stock | $ 12,080 |
Repurchase of common stock | |
Dividends paid | $ (1,545) |
Balance, end of period at Sep. 30, 2014 | 68,914 |
Balance, beginning of period at Dec. 31, 2014 | 77,798 |
Comprehensive income | |
Net Income - F & M Bank Corp | 6,237 |
Net income attributable to noncontrolling interest | 115 |
Net change in unrealized appreciation on securities available for sale, net of taxes | 29 |
Total comprehensive income | 6,381 |
Minority Interest Capital Distributions | (18) |
Issuance of common stock | 99 |
Repurchase of common stock | (261) |
Dividends paid | (2,161) |
Balance, end of period at Sep. 30, 2015 | $ 81,838 |
1. Summary of significant accou
1. Summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2015 | |
Summary Of Significant Accounting Policies | |
1. Summary of significant accounting policies | 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 September 30, 2015 and the results of operations for the quarters and nine month periods ended September 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 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. 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. 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 common share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements. Basic common EPS is computed by dividing net income by the weighted average number of common shares outstanding. Diluted common 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 Nine months ended For the Quarter ended For the Nine months ended For the Quarter ended September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Earnings available to common stockholders: Net income $ 6,351,521 $ 2,229,213 $ 4,210,028 $ 1,561,179 Minority interest 115,397 39,273 26,300 8,208 Preferred stock dividends 382,500 127,500 - - Net income available to common stockholders $ 5,853,624 $ 2,062,440 $ 4,236,328 $ 1,569,387 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated. Preferred stock was not issued at September 30, 2014 therefore there is no prior year data presented . Nine months ended September 30, 2015 Quarter ended September 30, 2015 Income Shares Per Share Income Shares Per Share Basic common EPS $ 5,853,624 3,292,709 $ 1.78 $ 2,062,440 3,291,133 $ 0.63 Effect of dilutive securities: Convertible preferred stock 382,500 444,400 (0.08 ) 127,500 444,400 (0.04 ) Diluted common EPS $ 6,236,124 3,737,109 $ 1.67 $ 2,189,940 3,735,533 $ 0.59 |
2. Investment Securities
2. Investment Securities | 9 Months Ended |
Sep. 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 September 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 September 30, 2015 and December 31, 2014 are as follows (in thousands): 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 September 30, 2015 Unrealized Market Cost Gains Losses Value Securities available for sale U. S. Treasury $ 4,018 $ 29 $ - $ 4,047 Government sponsored enterprises 8,115 10 6 8,119 Mortgage-backed securities 858 14 - 872 Corporate equities 135 - - 135 Total $ 13,126 $ 53 $ 6 $ 13,173 December 31, 2014 Unrealized Market Cost Gains Losses Value Securities available for sale U. S. Treasury $ 4,026 $ - $ 6 $ 4,020 Government sponsored enterprises 8,039 9 10 8,038 Mortgage-backed securities 1,011 11 - 1,022 Corporate equities 135 - - 135 Total $ 13,211 $ 20 $ 16 $ 13,215 The amortized cost and fair value of securities at September 30, 2015, by contractual maturity are shown below (in thousands). Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities Held to Maturity Securities Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 125 $ 125 $ - $ - Due after one year through five years - - 12,133 12,166 Due after five years - - 993 1,007 Total $ 125 $ 125 $ 13,126 $ 13,173 There were no gains and losses on sales of securities in the third quarter or nine month period ended September 30 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 September 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 September 30, 2015 U. S. Treasury $ - $ - $ - $ - $ - $ - Government sponsored Enterprises 4,013 (6 ) - - 4,013 (6 ) Total $ 4,013 $ (6 ) $ - $ - $ 4,013 $ (6 ) December 31, 2014 U. S. Treasury $ 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 repurchases which were partially offset with an increase in the Federal Reserve Bank Stock holding requirement. |
3. Loans Held for Investment
3. Loans Held for Investment | 9 Months Ended |
Sep. 30, 2015 | |
Loans Held For Investment | |
3. Loans Held for Investment | Loans outstanding at September 30, 2015 and December 31, 2014 are summarized as follows 2015 2014 Construction/Land Development $ 68,597 $ 67,181 Farmland 12,739 12,507 Real Estate 165,324 162,249 Multi-Family 11,949 11,775 Commercial Real Estate 127,197 122,305 Home Equity – closed end 9,270 9,394 Home Equity – open end 55,202 52,182 Commercial & Industrial – Non-Real Estate 27,545 28,161 Consumer 7,979 9,110 Dealer Finance 52,032 40,633 Credit Cards 2,581 2,705 Total $ 540,415 $ 518,202 The following is a summary of information pertaining to impaired loans (in thousands): Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 3,307 $ 3,445 $ - $ 4,349 $ 110 Farmland - - - - - Real Estate 1,051 1,051 - 543 43 Multi-Family - - - - - Commercial Real Estate 322 322 - 1,162 13 Home Equity – closed end - - - - - Home Equity – open end 1,559 1,559 - 1,281 82 Commercial & Industrial – Non-Real Estate 183 183 - 189 9 Consumer 19 19 - 4 - Credit cards - - - - - Dealer Finance - - - - 2 6,441 6,579 7,528 259 Impaired loans with a valuation allowance Construction/Land Development 12,258 12,258 2,063 13,074 220 Farmland - - - - - Real Estate 753 753 52 817 43 Multi-Family - - - - - Commercial Real Estate 895 895 24 925 3 Home Equity – closed end - - - - - Home Equity – open end 1,649 1,649 47 330 58 Commercial & Industrial – Non-Real Estate - - - - - Consumer - - - - - Credit cards - - - - - Dealer Finance 40 40 11 32 3 15,595 15,595 2,197 15,178 327 Total impaired loans $ 22,036 $ 22,174 $ 2,197 $ 22,706 $ 586 The Recorded Investment is defined as the principal balance less principal payments and charge-offs. 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
4. Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2015 | |
Allowance For Loan Losses | |
4. Allowance for Loan Losses | A summary of the allowance for loan losses follows (in thousands): For the nine months ended September 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 $ 83 $ 471 $ 5,154 $ 2,063 $ 3,091 Farmland 102 - - (15 ) 87 - 87 Real Estate 623 25 - (112 ) 486 51 435 Multi-Family 95 - - (13 ) 82 - 82 Commercial Real Estate 126 - 47 (78 ) 95 24 71 Home Equity – closed end 188 26 6 (8 ) 160 - 160 Home Equity – open end 154 51 - 82 185 48 137 Commercial & Industrial – Non-Real Estate 1,014 - 60 (246 ) 828 - 828 Consumer 214 23 23 (9 ) 205 - 205 Dealer Finance 1,336 111 20 232 1,477 11 1,466 Credit Cards 135 56 36 (4 ) 111 - 111 Total $ 8,725 $ 430 $ 275 $ 300 $ 8,870 $ 2,197 $ 6,673 For the year ended 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 September 30, 2015 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 68,597 $ 15,565 $ 53,032 Farmland 12,739 - 12,739 Real Estate 165,324 1,804 163,520 Multi-Family 11,949 - 11,949 Commercial Real Estate 127,197 1,217 125,980 Home Equity – closed end 9,270 - 9,270 Home Equity –open end 55,202 3,208 51,994 Commercial & Industrial – Non-Real Estate 27,545 183 27,362 Consumer 7,979 19 7,960 Dealer Finance 52,032 40 51,992 Credit Cards 2,581 - 2,581 $ 540,415 $ 22,036 $ 518,379 Total Recorded Investment in Loan Receivables (in thousands) 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 September 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 September 30, 2015 Construction/Land Development $ 254 $ 2,030 $ - $ 4,761 $ 7,045 $ 61,552 $ 68,597 Farmland - - - - - 12,739 12,739 Real Estate 2,954 1,118 62 1,066 5,200 160,124 165,324 Multi-Family - - - - - 11,949 11,949 Commercial Real Estate 315 - - - 315 126,882 127,197 Home Equity – closed end 42 4 - - 46 9,224 9,270 Home Equity – open end 520 224 30 41 815 54,387 55,202 Commercial & Industrial – Non- Real Estate 33 59 - 75 167 27,378 27,545 Consumer 44 15 - - 59 7,920 7,979 Dealer Finance 706 286 - 349 1,341 50,691 52,032 Credit Cards 36 8 2 - 46 2,535 2,581 Total $ 4,904 $ 3,744 $ 94 $ 6,292 $ 15,034 $ 525,381 $ 540,415 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 SEPTEMBER 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 $ - $ 342 $ 8,053 $ 31,514 $ 8,538 $ 5,757 $ 14,393 $ - $ 68,597 Farmland 66 - 1,936 3,688 4,968 2,081 - - 12,739 Real Estate - 1,028 56,568 72,890 23,131 8,297 3,410 - 165,324 Multi-Family - 410 3,974 3,078 4,487 - - - 11,949 Commercial Real Estate - 1,721 27,312 69,002 20,126 7,733 1,303 - 127,197 Home Equity – closed end - - 3,675 3,772 1,682 123 18 - 9,270 Home Equity – open end - 1,713 14,955 29,700 4,400 399 4,035 - 55,202 Commercial & Industrial (Non-Real Estate) 523 75 6,941 17,304 2,130 461 111 - 27,545 Total $ 589 $ 5,289 $ 123,414 $ 230,948 $ 69,462 $ 24,851 $ 23,270 $ - $ 477,823 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Credit Cards Consumer Performing $ 2,579 $ 59,662 Non performing 2 349 Total $ 2,581 $ 60,011 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 | 9 Months Ended |
Sep. 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 nine month and three month periods ended September 30, 2015 and 2014. Nine Months Ended Three Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Service cost $ 486,251 $ 375,771 $ 162,084 $ 125,257 Interest cost 308,208 283,281 102,736 94,427 Expected return on plan assets (629,114 ) (523,689 ) (209,705 ) (174,563 ) Amortization of net obligation at transition - - - - Amortization of prior service cost (11,427 ) (11,427 ) (3,809 ) (3,809 ) Amortization of net (gain) or loss 135,482 27,084 45,161 9,028 Net periodic pension cost $ 289,400 $ 151,020 $ 96,467 $ 50,340 |
6. Fair Value
6. Fair Value | 9 Months Ended |
Sep. 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. Treasury, 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 September 30, 2014 and December 31, 2013, the significant unobservable inputs used in the fair value measurements were as follows: Fair Value at September 30, 2015 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 13,398 Discounted appraised value Discount for selling costs and age of appraisals 15%-55 % Other Real Estate Owned $ 2,462 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 (in thousands). September 30, 2015 Total Level 1 Level 2 Level 3 U.S. Treasury Securities $ 4,047 $ - $ 4,047 Government sponsored enterprises 8,119 - 8,119 - Mortgage-backed securities 872 - 872 - Marketable equities 135 - 135 - Investment securities available for sale $ 13,173 $ - $ 13,173 $ - Total assets at fair value $ 13,173 $ - $ 13,173 $ - Total liabilities at fair value $ - $ - $ - $ - Derivative financial instruments at fair value $ 34 $ - $ 34 $ - December 31, 2014 Total Level 1 Level 2 Level 3 U. S. Treasuries Government sponsored enterprises $ 4,020 $ - $ 4,020 $ - Mortgage-backed securities 8,038 - 8,038 - Marketable equities 1,022 - 1,022 - Investment securities available for sale 135 - 135 - 13,215 - 13,215 - Total assets at fair value 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 September 30, 2015 Total Level 1 Level 2 Level 3 Other Real Estate Owned $ 2,462 - - $ 2,462 - - Construction/Land Development 10,195 - - 10,195 Farmland - - - - Real Estate 702 - - 702 Multi-Family - - - - Commercial Real Estate 871 - - 871 Home Equity – closed end - - - - Home Equity – open end 1,601 - - 1,601 Commercial & Industrial – Non-Real Estate - - - - Consumer - - - - Credit cards - - - - Dealer Finance 29 - - 29 Total Impaired loans 13,398 - - 13,398 Total assets at fair value $ 15,860 $ - $ - $ 15,860 Total liabilities at fair value $ - $ - $ - $ - The table below presents the recorded amount of assets and liabilities measured at fair value on a non-recurring basis (in thousands). The Company has determined that Other Real Estate Owned and Impaired Loans are Level 3. 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 - - - - Total 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 | 9 Months Ended |
Sep. 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 September 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 above and below are considered Level 2 with the exception of impaired loans of $13,398,000 and $13,223,000 at September 30, 2015 and December 31, 2014, respectively, which are considered level 3. 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 (in thousands). September 30, 2015 December 31, 2014 Estimated Carrying Estimated Carrying Fair Value Value Fair Value Value Financial Assets Loans, gross $ 568,774 $ 540,415 $ 551,338 $ 518,202 Financial Liabilities Time deposits $ 170,548 $ 169,528 196,826 195,464 Long-term debt $ 39,610 $ 38,893 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 | 9 Months Ended |
Sep. 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. In the nine months ended September 30, 2015, there were fifteen 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. Nine months ended September 30, 2015 Pre-Modification Post-Modification Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Commercial 1 $ 978 $ 978 Real Estate 5 3,342 3,342 Home Equity 5 1,648 1,648 Consumer 4 40 40 Total 15 $ 6,008 $ 6,008 During the quarter ended September 30, 2015, there were seven loan modifications that were considered to be troubled debt restructurings. Three Months ended September 30, 2015 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Commercial 1 $ 978 $ 978 Real Estate 1 612 $ 612 Home Equity 5 1,648 1,648 Total 7 $ 3,238 $ 3,238 There were no troubled debt restructurings from the previous twelve months that went into default in 2015. A restructured loan is considered in default when it becomes 90 days past due. In the nine months ended September 30, 2014, there were three (one loan during quarter ended September 30, 2014) 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. Nine months ended September 30, 2014 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Commercial $ - $ - Real Estate 2 181 181 Home Equity - - Credit Cards - - Consumer 1 23 23 Total $ 204 $ 204 There were no troubled debt restructurings from the previous twelve months that went into default in 2014. A restructured loan is considered in default when it becomes 90 days past due. |
1. Summary of significant acc17
1. Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Summary Of Significant Accounting Policies 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 common share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements. Basic common EPS is computed by dividing net income by the weighted average number of common shares outstanding. Diluted common 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 Nine months ended For the Quarter ended For the Nine months ended For the Quarter ended September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Earnings available to common stockholders: Net income $ 6,351,521 $ 2,229,213 $ 4,210,028 $ 1,561,179 Minority interest 115,397 39,273 26,300 8,208 Preferred stock dividends 382,500 127,500 - - Net income available to common stockholders $ 5,853,624 $ 2,062,440 $ 4,236,328 $ 1,569,387 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated. Preferred stock was not issued at September 30, 2014 therefore there is no prior year data presented . Nine months ended September 30, 2015 Quarter ended September 30, 2015 Income Shares Per Share Income Shares Per Share Basic common EPS $ 5,853,624 3,292,709 $ 1.78 $ 2,062,440 3,291,133 $ 0.63 Effect of dilutive securities: Convertible preferred stock 382,500 444,400 (0.08 ) 127,500 444,400 (0.04 ) Diluted common EPS $ 6,236,124 3,737,109 $ 1.67 $ 2,189,940 3,735,533 $ 0.59 |
1. Summary of significant acc18
1. Summary of significant accounting policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Summary Of Significant Accounting Policies 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 Nine months ended For the Quarter ended For the Nine months ended For the Quarter ended September 30, 2015 September 30, 2015 September 30, 2014 September 30, 2014 Earnings available to common stockholders: Net income $ 6,351,521 $ 2,229,213 $ 4,210,028 $ 1,561,179 Minority interest 115,397 39,273 26,300 8,208 Preferred stock dividends 382,500 127,500 - - Net income available to common stockholders $ 5,853,624 $ 2,062,440 $ 4,236,328 $ 1,569,387 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated. Nine months ended September 30, 2015 Quarter ended September 30, 2015 Income Shares Per Share Income Shares Per Share Basic common EPS $ 5,853,624 3,292,709 $ 1.78 $ 2,062,440 3,291,133 $ 0.63 Effect of dilutive securities: Convertible preferred stock 382,500 444,400 (0.08 ) 127,500 444,400 (0.04 ) Diluted common EPS $ 6,236,124 3,737,109 $ 1.67 $ 2,189,940 3,735,533 $ 0.59 |
2. Investment Securities (Table
2. Investment Securities (Tables) | 9 Months Ended |
Sep. 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 September 30, 2015 and December 31, 2014 are as follows (in thousands): 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 September 30, 2015 Unrealized Market Cost Gains Losses Value Securities available for sale U. S. Treasury $ 4,018 $ 29 $ - $ 4,047 Government sponsored enterprises 8,115 10 6 8,119 Mortgage-backed securities 858 14 - 872 Corporate equities 135 - - 135 Total $ 13,126 $ 53 $ 6 $ 13,173 December 31, 2014 Unrealized Market Cost Gains Losses Value Securities available for sale U. S. Treasury $ 4,026 $ - $ 6 $ 4,020 Government sponsored enterprises 8,039 9 10 8,038 Mortgage-backed securities 1,011 11 - 1,022 Corporate 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 $ 125 $ 125 $ - $ - Due after one year through five years - - 12,133 12,166 Due after five years - - 993 1,007 Total $ 125 $ 125 $ 13,126 $ 13,173 |
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 September 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 September 30, 2015 U. S. Treasury $ - $ - $ - $ - $ - $ - Government sponsored Enterprises 4,013 (6 ) - - 4,013 (6 ) Total $ 4,013 $ (6 ) $ - $ - $ 4,013 $ (6 ) December 31, 2014 U. S. Treasury $ 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) | 9 Months Ended |
Sep. 30, 2015 | |
Loans Held For Investment Tables | |
Schedule of Loans Outstanding | Loans outstanding at September 30, 2015 and December 31, 2014 are summarized as follows 2015 2014 Construction/Land Development $ 68,597 $ 67,181 Farmland 12,739 12,507 Real Estate 165,324 162,249 Multi-Family 11,949 11,775 Commercial Real Estate 127,197 122,305 Home Equity – closed end 9,270 9,394 Home Equity – open end 55,202 52,182 Commercial & Industrial – Non-Real Estate 27,545 28,161 Consumer 7,979 9,110 Dealer Finance 52,032 40,633 Credit Cards 2,581 2,705 Total $ 540,415 $ 518,202 |
Schedule Impaired Loans | The following is a summary of information pertaining to impaired loans (in thousands): Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 3,307 $ 3,445 $ - $ 4,349 $ 110 Farmland - - - - - Real Estate 1,051 1,051 - 543 43 Multi-Family - - - - - Commercial Real Estate 322 322 - 1,162 13 Home Equity – closed end - - - - - Home Equity – open end 1,559 1,559 - 1,281 82 Commercial & Industrial – Non-Real Estate 183 183 - 189 9 Consumer 19 19 - 4 - Credit cards - - - - - Dealer Finance - - - - 2 6,441 6,579 7,528 259 Impaired loans with a valuation allowance Construction/Land Development 12,258 12,258 2,063 13,074 220 Farmland - - - - - Real Estate 753 753 52 817 43 Multi-Family - - - - - Commercial Real Estate 895 895 24 925 3 Home Equity – closed end - - - - - Home Equity – open end 1,649 1,649 47 330 58 Commercial & Industrial – Non-Real Estate - - - - - Consumer - - - - - Credit cards - - - - - Dealer Finance 40 40 11 32 3 15,595 15,595 2,197 15,178 327 Total impaired loans $ 22,036 $ 22,174 $ 2,197 $ 22,706 $ 586 |
Recorded Investment | The Recorded Investment is defined as the principal balance less principal payments and charge-offs. 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) | 9 Months Ended |
Sep. 30, 2015 | |
Allowance For Loan Losses Tables | |
Summary Loan Loss Allowance Transactions | A summary of the allowance for loan losses follows (in thousands): For the nine months ended September 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 $ 83 $ 471 $ 5,154 $ 2,063 $ 3,091 Farmland 102 - - (15 ) 87 - 87 Real Estate 623 25 - (112 ) 486 51 435 Multi-Family 95 - - (13 ) 82 - 82 Commercial Real Estate 126 - 47 (78 ) 95 24 71 Home Equity – closed end 188 26 6 (8 ) 160 - 160 Home Equity – open end 154 51 - 82 185 48 137 Commercial & Industrial – Non-Real Estate 1,014 - 60 (246 ) 828 - 828 Consumer 214 23 23 (9 ) 205 - 205 Dealer Finance 1,336 111 20 232 1,477 11 1,466 Credit Cards 135 56 36 (4 ) 111 - 111 Total $ 8,725 $ 430 $ 275 $ 300 $ 8,870 $ 2,197 $ 6,673 For the year ended 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 September 30, 2015 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 68,597 $ 15,565 $ 53,032 Farmland 12,739 - 12,739 Real Estate 165,324 1,804 163,520 Multi-Family 11,949 - 11,949 Commercial Real Estate 127,197 1,217 125,980 Home Equity – closed end 9,270 - 9,270 Home Equity –open end 55,202 3,208 51,994 Commercial & Industrial – Non-Real Estate 27,545 183 27,362 Consumer 7,979 19 7,960 Dealer Finance 52,032 40 51,992 Credit Cards 2,581 - 2,581 $ 540,415 $ 22,036 $ 518,379 Total |
Recorded Investment in Loan Receivables | Recorded Investment in Loan Receivables (in thousands) 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 September 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 September 30, 2015 Construction/Land Development $ 254 $ 2,030 $ - $ 4,761 $ 7,045 $ 61,552 $ 68,597 Farmland - - - - - 12,739 12,739 Real Estate 2,954 1,118 62 1,066 5,200 160,124 165,324 Multi-Family - - - - - 11,949 11,949 Commercial Real Estate 315 - - - 315 126,882 127,197 Home Equity – closed end 42 4 - - 46 9,224 9,270 Home Equity – open end 520 224 30 41 815 54,387 55,202 Commercial & Industrial – Non- Real Estate 33 59 - 75 167 27,378 27,545 Consumer 44 15 - - 59 7,920 7,979 Dealer Finance 706 286 - 349 1,341 50,691 52,032 Credit Cards 36 8 2 - 46 2,535 2,581 Total $ 4,904 $ 3,744 $ 94 $ 6,292 $ 15,034 $ 525,381 $ 540,415 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 SEPTEMBER 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 $ - $ 342 $ 8,053 $ 31,514 $ 8,538 $ 5,757 $ 14,393 $ - $ 68,597 Farmland 66 - 1,936 3,688 4,968 2,081 - - 12,739 Real Estate - 1,028 56,568 72,890 23,131 8,297 3,410 - 165,324 Multi-Family - 410 3,974 3,078 4,487 - - - 11,949 Commercial Real Estate - 1,721 27,312 69,002 20,126 7,733 1,303 - 127,197 Home Equity – closed end - - 3,675 3,772 1,682 123 18 - 9,270 Home Equity – open end - 1,713 14,955 29,700 4,400 399 4,035 - 55,202 Commercial & Industrial (Non-Real Estate) 523 75 6,941 17,304 2,130 461 111 - 27,545 Total $ 589 $ 5,289 $ 123,414 $ 230,948 $ 69,462 $ 24,851 $ 23,270 $ - $ 477,823 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 $ 2,579 $ 59,662 Non performing 2 349 Total $ 2,581 $ 60,011 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) | 9 Months Ended |
Sep. 30, 2015 | |
EmployeeBenefitPlanTablesAbstract | |
Schedule of Employee Benefit Plan | The following is a summary of net periodic pension costs for the nine month and three month periods ended September 30, 2015 and 2014. Nine Months Ended Three Months Ended September 30, 2015 September 30, 2014 September 30, 2015 September 30, 2014 Service cost $ 486,251 $ 375,771 $ 162,084 $ 125,257 Interest cost 308,208 283,281 102,736 94,427 Expected return on plan assets (629,114 ) (523,689 ) (209,705 ) (174,563 ) Amortization of net obligation at transition - - - - Amortization of prior service cost (11,427 ) (11,427 ) (3,809 ) (3,809 ) Amortization of net (gain) or loss 135,482 27,084 45,161 9,028 Net periodic pension cost $ 289,400 $ 151,020 $ 96,467 $ 50,340 |
6. Fair Value (Tables)
6. Fair Value (Tables) | 9 Months Ended |
Sep. 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 September 30, 2014 and December 31, 2013, the significant unobservable inputs used in the fair value measurements were as follows: Fair Value at September 30, 2015 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 13,398 Discounted appraised value Discount for selling costs and age of appraisals 15%-55 % Other Real Estate Owned $ 2,462 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 (in thousands). September 30, 2015 Total Level 1 Level 2 Level 3 U.S. Treasury Securities $ 4,047 $ - $ 4,047 Government sponsored enterprises 8,119 - 8,119 - Mortgage-backed securities 872 - 872 - Marketable equities 135 - 135 - Investment securities available for sale $ 13,173 $ - $ 13,173 $ - Total assets at fair value $ 13,173 $ - $ 13,173 $ - Total liabilities at fair value $ - $ - $ - $ - Derivative financial instruments at fair value $ 34 $ - $ 34 $ - December 31, 2014 Total Level 1 Level 2 Level 3 U. S. Treasuries Government sponsored enterprises $ 4,020 $ - $ 4,020 $ - Mortgage-backed securities 8,038 - 8,038 - Marketable equities 1,022 - 1,022 - Investment securities available for sale 135 - 135 - 13,215 - 13,215 - Total assets at fair value 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 | Assets and Liabilities Recorded at Fair Value on a Non-recurring Basis September 30, 2015 Total Level 1 Level 2 Level 3 Other Real Estate Owned $ 2,462 - - $ 2,462 - - Construction/Land Development 10,195 - - 10,195 Farmland - - - - Real Estate 702 - - 702 Multi-Family - - - - Commercial Real Estate 871 - - 871 Home Equity – closed end - - - - Home Equity – open end 1,601 - - 1,601 Commercial & Industrial – Non-Real Estate - - - - Consumer - - - - Credit cards - - - - Dealer Finance 29 - - 29 Total Impaired loans 13,398 - - 13,398 Total assets at fair value $ 15,860 $ - $ - $ 15,860 Total liabilities at fair value $ - $ - $ - $ - The table below presents the recorded amount of assets and liabilities measured at fair value on a non-recurring basis (in thousands). The Company has determined that Other Real Estate Owned and Impaired Loans are Level 3. 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 - - - - Total 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) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosures About Fair Value Of Financial Instruments Tables | |
Carrying Value and Estimated Fair Value for Financial Instruments | 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 (in thousands). September 30, 2015 December 31, 2014 Estimated Carrying Estimated Carrying Fair Value Value Fair Value Value Financial Assets Loans, gross $ 568,774 $ 540,415 $ 551,338 $ 518,202 Financial Liabilities Time deposits $ 170,548 $ 169,528 196,826 195,464 Long-term debt $ 39,610 $ 38,893 9,862 9,875 |
8. Troubled Debt Restructuring
8. Troubled Debt Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Asset Types | |
Troubled debt restructuring | 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. Nine months ended September 30, 2015 Pre-Modification Post-Modification Outstanding Outstanding Troubled Debt Restructurings Number of Contracts Recorded Investment Recorded Investment Commercial 1 $ 978 $ 978 Real Estate 5 3,342 3,342 Home Equity 5 1,648 1,648 Consumer 4 40 40 Total 15 $ 6,008 $ 6,008 During the quarter ended September 30, 2015, there were seven loan modifications that were considered to be troubled debt restructurings. Three Months ended September 30, 2015 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Commercial 1 $ 978 $ 978 Real Estate 1 612 $ 612 Home Equity 5 1,648 1,648 Total 7 $ 3,238 $ 3,238 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. Nine months ended September 30, 2014 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Commercial $ - $ - Real Estate 2 181 181 Home Equity - - Credit Cards - - Consumer 1 23 23 Total $ 204 $ 204 |
1. Summary of significant acc26
1. Summary of significant accounting policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Available to Common Stockholders: | ||||
Net Income | $ 2,229 | $ 1,561 | $ 6,352 | $ 4,210 |
Minority interest | 39 | $ 8 | 115 | $ 26 |
Preferred Stock Dividends | 128 | 383 | ||
Net Income Available to Common Stockholders | $ 2,062 | $ 1,569 | $ 5,854 | $ 4,236 |
1. Summary of significant acc27
1. Summary of significant accounting policies (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Summary Of Significant Accounting Policies | ||||
Basic common EPS, Income | $ 2,062 | $ 1,569 | $ 5,854 | $ 4,236 |
Effect of Dilutive Securities Convertible Preferred Stock, Income | 128 | 383 | ||
Diluted common EPS, Income | $ 2,190 | $ 1,569 | $ 6,237 | $ 4,236 |
Diluted common EPS, Shares | 3,291,133 | 3,289,743 | 3,292,709 | 3,061,432 |
Effect of Dilutive Securities Convertible Preferred Stock, Shares | 444,400 | 444,400 | ||
Diluted common EPS, Shares | 3,735,533 | 3,289,743 | 3,737,109 | 3,061,432 |
Basic common EPS, Per Shares | $ 0.63 | $ 0.48 | $ 1.78 | $ 1.38 |
Effect of Dilutive Securities Convertible Preferred Stock, Per Shares | (0.04) | (0.08) | ||
Diluted common EPS, Per Shares | $ 0.59 | $ 0.48 | $ 1.67 | $ 1.38 |
2. Investment Securities (Detai
2. Investment Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Available-for-Sale Securities | ||
Cost | $ 13,126 | $ 13,211 |
Unrealized Gains | 53 | 20 |
Unrealized Losses | 6 | 16 |
Market Value | 13,173 | 13,215 |
Held-to-Maturity Securities | ||
Amortized Cost - Held-to-Maturity | 125 | 125 |
Market Value - Held-to-Maturity | 125 | 125 |
U. S. Treasury [Member] | ||
Available-for-Sale Securities | ||
Cost | 4,018 | $ 4,026 |
Unrealized Gains | $ 29 | |
Unrealized Losses | $ 6 | |
Market Value | $ 4,047 | 4,020 |
Government sponsored enterprises [Member] | ||
Available-for-Sale Securities | ||
Cost | 8,115 | 8,039 |
Unrealized Gains | 10 | 9 |
Unrealized Losses | 6 | 10 |
Market Value | 8,119 | 8,038 |
Mortgage Backed Securities [Member] | ||
Available-for-Sale Securities | ||
Cost | 858 | 1,011 |
Unrealized Gains | $ 14 | $ 11 |
Unrealized Losses | ||
Market Value | $ 872 | $ 1,022 |
Corporate equities [Member] | ||
Available-for-Sale Securities | ||
Cost | $ 135 | $ 135 |
Unrealized Gains | ||
Unrealized Losses | ||
Market Value | $ 135 | $ 135 |
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 |
2. Investment Securities (Det29
2. Investment Securities (Details 1) - USD ($) $ in Thousands | Sep. 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 | $ 125 | |
Due after one year through five years, Amortized Cost | ||
Due after five years, Amortized Cost | ||
Total, Amortized Cost | $ 125 | |
Due in one year or less, Fair Value | $ 125 | |
Due after one year through five years, Fair Value | ||
Due after five years, Fair Value | ||
Total, Fair Value | $ 125 | |
Investment securities available for sale [Member] | ||
Due in one year or less, Amortized Cost | ||
Due after one year through five years, Amortized Cost | $ 12,133 | |
Due after five years, Amortized Cost | 993 | |
Total, Amortized Cost | $ 13,126 | |
Due in one year or less, Fair Value | ||
Due after one year through five years, Fair Value | $ 12,166 | |
Due after five years, Fair Value | 1,007 | |
Total, Fair Value | $ 13,173 |
2. Investment securities (Det30
2. Investment securities (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Less than 12 Months | $ 4,013 | $ 6,024 |
Unrealized Losses Less than 12 Months | $ (6) | (8) |
Fair Value More than 12 Months | 1,991 | |
Unrealized Losses More than 12 Months | (8) | |
Fair Value Total | $ 4,013 | 8,015 |
Unrealized Losses Total | $ (6) | (16) |
U. S. Treasury [Member] | ||
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) | |
Government sponsored enterprises [Member] | ||
Fair Value Less than 12 Months | $ 4,013 | 2,004 |
Unrealized Losses Less than 12 Months | $ (6) | (2) |
Fair Value More than 12 Months | 1,991 | |
Unrealized Losses More than 12 Months | (8) | |
Fair Value Total | $ 4,013 | 3,995 |
Unrealized Losses Total | $ (6) | $ (10) |
3. Loans Held for Investment (D
3. Loans Held for Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Loans outstanding | $ 540,415 | $ 518,202 |
Construction/Land Development [Member] | ||
Loans outstanding | 68,597 | 67,181 |
Farmland [Member] | ||
Loans outstanding | 12,739 | 12,507 |
Real Estate [Member] | ||
Loans outstanding | 165,324 | 162,249 |
Multi-Family [Member] | ||
Loans outstanding | 11,949 | 11,775 |
Commercial [Member] | ||
Loans outstanding | 127,197 | 122,305 |
Home Equity - Closed End [Member] | ||
Loans outstanding | 9,270 | 9,394 |
Home Equity [Member] | ||
Loans outstanding | 55,202 | 52,182 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Loans outstanding | 27,545 | 28,161 |
Consumer [Member] | ||
Loans outstanding | 7,979 | 9,110 |
Dealer Finance [Member] | ||
Loans outstanding | 52,032 | 40,633 |
Credit Cards [Member] | ||
Loans outstanding | $ 2,581 | $ 2,705 |
3. Loans Held for Investment 32
3. Loans Held for Investment (Details 1) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 6,441 | $ 8,122 |
Unpaid Principal Balance | 6,579 | $ 8,842 |
Related Allowance | ||
Average Recorded Investment | 7,528 | $ 8,800 |
Interest Income Recognized | 259 | 390 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 15,595 | 14,840 |
Unpaid Principal Balance | 15,595 | 16,613 |
Related Allowance | 2,197 | 1,617 |
Average Recorded Investment | 15,178 | 14,186 |
Interest Income Recognized | 327 | 435 |
Total impaired loans | ||
Recorded Investment | 22,036 | 22,962 |
Unpaid Principal Balance | 22,174 | 25,455 |
Related Allowance | 2,197 | 1,617 |
Average Recorded Investment | 22,706 | 22,986 |
Interest Income Recognized | 586 | 825 |
Construction/Land Development [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 3,307 | 4,982 |
Unpaid Principal Balance | $ 3,445 | $ 5,402 |
Related Allowance | ||
Average Recorded Investment | $ 4,349 | $ 5,412 |
Interest Income Recognized | 110 | 251 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 12,258 | 12,976 |
Unpaid Principal Balance | 12,258 | 14,749 |
Related Allowance | 2,063 | 1,469 |
Average Recorded Investment | 13,074 | 12,056 |
Interest Income Recognized | $ 220 | $ 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 | $ 1,051 | $ 141 |
Unpaid Principal Balance | $ 1,051 | $ 141 |
Related Allowance | ||
Average Recorded Investment | $ 543 | $ 85 |
Interest Income Recognized | 43 | 5 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 753 | 926 |
Unpaid Principal Balance | 753 | 926 |
Related Allowance | 52 | 101 |
Average Recorded Investment | 817 | 988 |
Interest Income Recognized | $ 43 | $ 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 [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 322 | $ 1,159 |
Unpaid Principal Balance | $ 322 | $ 1,459 |
Related Allowance | ||
Average Recorded Investment | $ 1,162 | $ 1,450 |
Interest Income Recognized | 13 | 66 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 895 | 938 |
Unpaid Principal Balance | 895 | 938 |
Related Allowance | 24 | 47 |
Average Recorded Investment | 925 | 1,030 |
Interest Income Recognized | $ 3 | $ 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 [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 1,559 | $ 1,649 |
Unpaid Principal Balance | $ 1,559 | $ 1,649 |
Related Allowance | ||
Average Recorded Investment | $ 1,281 | $ 330 |
Interest Income Recognized | 82 | $ 57 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 1,649 | |
Unpaid Principal Balance | 1,649 | |
Related Allowance | 47 | |
Average Recorded Investment | 330 | $ 40 |
Interest Income Recognized | 58 | |
Commercial & Industrial - Non-Real Estate [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 183 | $ 191 |
Unpaid Principal Balance | $ 183 | $ 191 |
Related Allowance | ||
Average Recorded Investment | $ 189 | $ 237 |
Interest Income Recognized | $ 9 | $ 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 | $ 19 | |
Unpaid Principal Balance | $ 19 | |
Related Allowance | ||
Average Recorded Investment | $ 4 | |
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 | $ 2 | |
Impaired loans with a valuation allowance | ||
Recorded Investment | 40 | |
Unpaid Principal Balance | 40 | |
Related Allowance | 11 | |
Average Recorded Investment | 32 | |
Interest Income Recognized | $ 3 |
4. Allowance for Loan Losses (D
4. Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Beginning Balance | $ 8,725 | $ 8,184 |
Charge-offs | 430 | 2,470 |
Recoveries | 275 | 761 |
Provision | 300 | 2,250 |
Ending Balance | 8,870 | 8,725 |
Individually Evaluated for Impairment | 2,197 | 1,617 |
Collectively Evaluated for Impairment | 6,673 | 7,108 |
Construction/Land Development [Member] | ||
Beginning Balance | 4,738 | 4,007 |
Charge-offs | 138 | 1,611 |
Recoveries | 83 | 223 |
Provision | 471 | 2,119 |
Ending Balance | 5,154 | 4,738 |
Individually Evaluated for Impairment | 2,063 | 1,469 |
Collectively Evaluated for Impairment | 3,091 | 3,269 |
Farmland [Member] | ||
Beginning Balance | $ 102 | $ (2) |
Charge-offs | ||
Recoveries | ||
Provision | $ (15) | $ 104 |
Ending Balance | $ 87 | $ 102 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 87 | $ 102 |
Real Estate [Member] | ||
Beginning Balance | 623 | 400 |
Charge-offs | $ 25 | $ 208 |
Recoveries | ||
Provision | $ (112) | $ 431 |
Ending Balance | 486 | 623 |
Individually Evaluated for Impairment | 51 | 101 |
Collectively Evaluated for Impairment | 435 | $ 522 |
Multi-Family [Member] | ||
Beginning Balance | $ 95 | |
Charge-offs | ||
Recoveries | ||
Provision | $ (13) | $ 95 |
Ending Balance | $ 82 | $ 95 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 82 | $ 95 |
Commercial [Member] | ||
Beginning Balance | $ 126 | $ 777 |
Charge-offs | ||
Recoveries | $ 47 | $ 108 |
Provision | (78) | (759) |
Ending Balance | 95 | 126 |
Individually Evaluated for Impairment | 24 | 47 |
Collectively Evaluated for Impairment | 71 | 79 |
Home Equity - Closed End [Member] | ||
Beginning Balance | 188 | $ 157 |
Charge-offs | 26 | |
Recoveries | 6 | |
Provision | (8) | $ 31 |
Ending Balance | $ 160 | $ 188 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 160 | $ 188 |
Home Equity [Member] | ||
Beginning Balance | 154 | 476 |
Charge-offs | $ 51 | $ 80 |
Recoveries | ||
Provision | $ 82 | $ (242) |
Ending Balance | 185 | $ 154 |
Individually Evaluated for Impairment | 48 | |
Collectively Evaluated for Impairment | 137 | $ 154 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Beginning Balance | $ 1,014 | 1,464 |
Charge-offs | 385 | |
Recoveries | $ 60 | 356 |
Provision | (246) | (421) |
Ending Balance | $ 828 | $ 1,014 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 828 | $ 1,014 |
Consumer [Member] | ||
Beginning Balance | 214 | 156 |
Charge-offs | 23 | 33 |
Recoveries | 23 | 33 |
Provision | (9) | 58 |
Ending Balance | $ 205 | $ 214 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 205 | $ 214 |
Dealer Finance [Member] | ||
Beginning Balance | 1,336 | 628 |
Charge-offs | 111 | 107 |
Recoveries | 20 | 6 |
Provision | 232 | 809 |
Ending Balance | 1,477 | $ 1,336 |
Individually Evaluated for Impairment | 11 | |
Collectively Evaluated for Impairment | 1,466 | $ 1,336 |
Credit Cards [Member] | ||
Beginning Balance | 135 | 121 |
Charge-offs | 56 | 46 |
Recoveries | 36 | 35 |
Provision | (4) | 25 |
Ending Balance | $ 111 | $ 135 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 111 | $ 135 |
4. Allowance for Loan Losses 34
4. Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Loan Receivable | $ 540,415 | $ 518,202 |
Individually Evaluated for Impairment | 22,036 | 22,962 |
Collectively Evaluated for Impairment | 518,379 | 495,240 |
Construction/Land Development [Member] | ||
Loan Receivable | 68,597 | 67,181 |
Individually Evaluated for Impairment | 15,565 | 17,958 |
Collectively Evaluated for Impairment | 53,032 | 49,223 |
Farmland [Member] | ||
Loan Receivable | $ 12,739 | $ 12,507 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 12,739 | $ 12,507 |
Real Estate [Member] | ||
Loan Receivable | 165,324 | 162,249 |
Individually Evaluated for Impairment | 1,804 | 1,067 |
Collectively Evaluated for Impairment | 163,520 | 161,182 |
Multi-Family [Member] | ||
Loan Receivable | $ 11,949 | $ 11,775 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 11,949 | $ 11,775 |
Commercial [Member] | ||
Loan Receivable | 127,197 | 122,305 |
Individually Evaluated for Impairment | 1,217 | 2,097 |
Collectively Evaluated for Impairment | 125,980 | 120,208 |
Home Equity - Closed End [Member] | ||
Loan Receivable | $ 9,270 | $ 9,394 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 9,270 | $ 9,394 |
Home Equity [Member] | ||
Loan Receivable | 55,202 | 52,182 |
Individually Evaluated for Impairment | 3,208 | 1,649 |
Collectively Evaluated for Impairment | 51,994 | 50,533 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Loan Receivable | 27,545 | 28,161 |
Individually Evaluated for Impairment | 183 | 191 |
Collectively Evaluated for Impairment | 27,362 | 27,970 |
Consumer [Member] | ||
Loan Receivable | 7,979 | $ 9,110 |
Individually Evaluated for Impairment | 19 | |
Collectively Evaluated for Impairment | 7,960 | $ 9,110 |
Dealer Finance [Member] | ||
Loan Receivable | 52,032 | 40,633 |
Individually Evaluated for Impairment | 40 | |
Collectively Evaluated for Impairment | 51,992 | 40,633 |
Credit Cards [Member] | ||
Loan Receivable | $ 2,581 | $ 2,705 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 2,581 | $ 2,705 |
4. Allowance for Loan Losses 35
4. Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
30-59 Days Past due | $ 4,904 | $ 7,951 |
60-89 Days Past due | 3,744 | 1,039 |
Greater than 90 Days (excluding non-accrual) | 94 | 1 |
Non-Accrual Loans | 6,292 | 6,974 |
Total past due | 15,034 | 15,965 |
Current | 525,381 | 502,237 |
Total Loans Receivable | 540,415 | 518,202 |
Construction/Land Development [Member] | ||
30-59 Days Past due | 254 | 205 |
60-89 Days Past due | $ 2,030 | $ 166 |
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | $ 4,761 | $ 4,508 |
Total past due | 7,045 | 4,879 |
Current | 61,552 | 62,302 |
Total Loans Receivable | $ 68,597 | $ 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 | $ 12,739 | $ 12,507 |
Total Loans Receivable | 12,739 | 12,507 |
Real Estate [Member] | ||
30-59 Days Past due | 2,954 | 5,085 |
60-89 Days Past due | 1,118 | $ 635 |
Greater than 90 Days (excluding non-accrual) | 62 | |
Non-Accrual Loans | 1,066 | $ 973 |
Total past due | 5,200 | 6,693 |
Current | 160,124 | 155,556 |
Total Loans Receivable | $ 165,324 | $ 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 | $ 11,949 | $ 11,775 |
Total Loans Receivable | 11,949 | 11,775 |
Commercial [Member] | ||
30-59 Days Past due | $ 315 | $ 747 |
60-89 Days Past due | ||
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | $ 1,165 | |
Total past due | $ 315 | 1,912 |
Current | 126,882 | 120,393 |
Total Loans Receivable | 127,197 | 122,305 |
Home Equity - Closed End [Member] | ||
30-59 Days Past due | 42 | 162 |
60-89 Days Past due | $ 4 | $ 15 |
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | $ 10 | |
Total past due | $ 46 | 187 |
Current | 9,224 | 9,207 |
Total Loans Receivable | 9,270 | 9,394 |
Home Equity [Member] | ||
30-59 Days Past due | 520 | 730 |
60-89 Days Past due | 224 | $ 25 |
Greater than 90 Days (excluding non-accrual) | 30 | |
Non-Accrual Loans | 41 | $ 143 |
Total past due | 815 | 898 |
Current | 54,387 | 51,284 |
Total Loans Receivable | 55,202 | $ 52,182 |
Commercial & Industrial - Non-Real Estate [Member] | ||
30-59 Days Past due | 33 | |
60-89 Days Past due | $ 59 | |
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | $ 75 | $ 14 |
Total past due | 167 | 14 |
Current | 27,378 | 28,147 |
Total Loans Receivable | 27,545 | 28,161 |
Consumer [Member] | ||
30-59 Days Past due | 44 | 290 |
60-89 Days Past due | $ 15 | $ 9 |
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | ||
Total past due | $ 59 | $ 299 |
Current | 7,920 | 8,811 |
Total Loans Receivable | 7,979 | 9,110 |
Dealer Finance [Member] | ||
30-59 Days Past due | 706 | 696 |
60-89 Days Past due | $ 286 | $ 189 |
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | $ 349 | $ 161 |
Total past due | 1,341 | 1,046 |
Current | 50,691 | 39,587 |
Total Loans Receivable | 52,032 | 40,633 |
Credit Cards [Member] | ||
30-59 Days Past due | 36 | $ 36 |
60-89 Days Past due | 8 | |
Greater than 90 Days (excluding non-accrual) | $ 2 | $ 1 |
Non-Accrual Loans | ||
Total past due | $ 46 | $ 37 |
Current | 2,535 | 2,668 |
Total Loans Receivable | $ 2,581 | $ 2,705 |
4. Allowance for Loan Losses 36
4. Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Construction/Land Development | $ 68,597 | $ 67,181 |
Farmland | 12,739 | 12,507 |
Real Estate | 165,324 | 162,249 |
Multi-Family | 11,949 | 11,775 |
Commercial Real Estate | 127,197 | 122,305 |
Home Equity - closed end | 9,270 | 9,394 |
Home Equity - open end | 55,202 | 52,182 |
Commercial & Industrial (Non-Real Estate) | 27,545 | 28,161 |
Total | $ 477,823 | $ 465,754 |
Grade 1 Minimal Risk [Member] | ||
Construction/Land Development | ||
Farmland | $ 66 | $ 68 |
Real Estate | ||
Multi-Family | ||
Commercial Real Estate | ||
Home Equity - closed end | ||
Home Equity - open end | ||
Commercial & Industrial (Non-Real Estate) | $ 523 | $ 643 |
Total | 589 | 711 |
Grade 2 Modest Risk [Member] | ||
Construction/Land Development | $ 342 | $ 165 |
Farmland | ||
Real Estate | $ 1,028 | $ 629 |
Multi-Family | 410 | 468 |
Commercial Real Estate | $ 1,721 | $ 1,687 |
Home Equity - closed end | ||
Home Equity - open end | $ 1,713 | $ 1,555 |
Commercial & Industrial (Non-Real Estate) | 75 | 74 |
Total | 5,289 | 4,578 |
Grade 3 Average Risk [Member] | ||
Construction/Land Development | 8,053 | 8,460 |
Farmland | 1,936 | 1,640 |
Real Estate | 56,568 | 60,290 |
Multi-Family | 3,974 | 4,145 |
Commercial Real Estate | 27,312 | 22,800 |
Home Equity - closed end | 3,675 | 4,327 |
Home Equity - open end | 14,955 | 13,433 |
Commercial & Industrial (Non-Real Estate) | 6,941 | 4,692 |
Total | 123,414 | 119,787 |
Grade 4 Acceptable Risk [Member] | ||
Construction/Land Development | 31,514 | 24,227 |
Farmland | 3,688 | 3,451 |
Real Estate | 72,890 | 66,464 |
Multi-Family | 3,078 | 2,183 |
Commercial Real Estate | 69,002 | 65,653 |
Home Equity - closed end | 3,772 | 3,090 |
Home Equity - open end | 29,700 | 28,425 |
Commercial & Industrial (Non-Real Estate) | 17,304 | 18,039 |
Total | 230,948 | 211,532 |
Grade 5 Marginally Acceptable [Member] | ||
Construction/Land Development | 8,538 | 9,605 |
Farmland | 4,968 | 5,228 |
Real Estate | 23,131 | 23,934 |
Multi-Family | 4,487 | 4,979 |
Commercial Real Estate | 20,126 | 19,058 |
Home Equity - closed end | 1,682 | 1,812 |
Home Equity - open end | 4,400 | 4,309 |
Commercial & Industrial (Non-Real Estate) | 2,130 | 3,948 |
Total | 69,462 | 72,873 |
Grade 6 Watch [Member] | ||
Construction/Land Development | 5,757 | $ 3,815 |
Farmland | 2,081 | |
Real Estate | $ 8,297 | $ 7,083 |
Multi-Family | ||
Commercial Real Estate | $ 7,733 | $ 10,571 |
Home Equity - closed end | 123 | 154 |
Home Equity - open end | 399 | 1,936 |
Commercial & Industrial (Non-Real Estate) | 461 | 735 |
Total | 24,851 | 24,294 |
Grade 7 Substandard [Member] | ||
Construction/Land Development | $ 14,393 | 20,909 |
Farmland | 2,120 | |
Real Estate | $ 3,410 | $ 3,849 |
Multi-Family | ||
Commercial Real Estate | $ 1,303 | $ 2,536 |
Home Equity - closed end | 18 | 11 |
Home Equity - open end | 4,035 | 2,524 |
Commercial & Industrial (Non-Real Estate) | 111 | 30 |
Total | $ 23,270 | $ 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 | Sep. 30, 2015 | Dec. 31, 2014 |
Credit cards | $ 2,581 | $ 2,705 |
Consumer | 60,011 | 49,743 |
Performing [Member] | ||
Credit cards | 2,579 | 2,704 |
Consumer | 59,662 | 49,582 |
Non performing [Member] | ||
Credit cards | 2 | 1 |
Consumer | $ 349 | $ 161 |
5. Employee Benefit Plan (Detai
5. Employee Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Benefit Plan Details | ||||
Service cost | $ 162,084 | $ 125,257 | $ 486,251 | $ 375,771 |
Interest cost | 102,736 | 94,427 | 308,208 | 283,281 |
Expected return on plan assets | $ (209,705) | $ (174,563) | $ (629,114) | $ (523,689) |
Amortization of net obligation at transition | ||||
Amortization of prior service cost | $ (3,809) | $ (3,809) | $ (11,427) | $ (11,427) |
Amortization of net (gain) or loss | 45,161 | 9,028 | 135,482 | 27,084 |
Net periodic pension cost | $ 96,467 | $ 50,340 | $ 289,400 | $ 151,020 |
5. Employee Benefit Plan (Det39
5. Employee Benefit Plan (Details Narrative) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Employee Benefit Plan Details Narrative | |
Contribution to employee benefit plan | $ 750,000 |
6. Fair Value (Details)
6. Fair Value (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Impaired loans | $ 13,398 | $ 13,223 |
Other Real Estate Owned | 2,462 | 3,507 |
Fair Value Inputs Level 3 [Member] | ||
Impaired loans | 13,398 | 13,223 |
Other Real Estate Owned | $ 2,462 | $ 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 | Sep. 30, 2015 | Dec. 31, 2014 |
Total assets at fair value | $ 13,173 | $ 13,215 |
Total liabilities at fair value | ||
Derivative financial instruments at fair value | $ 34 | $ 33 |
Corporate 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 | $ 13,173 | $ 13,215 |
Total liabilities at fair value | ||
Derivative financial instruments at fair value | $ 34 | $ 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 | $ 4,047 | $ 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 | $ 4,047 | $ 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 | $ 8,119 | $ 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 | $ 8,119 | $ 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 | $ 872 | $ 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 | $ 872 | $ 1,022 |
Mortgage Backed Obligations of Federal Agencies [Member] | Fair Value Inputs Level 3 [Member] | ||
Total assets at fair value | ||
Corporate equities [Member] | Fair Value Inputs Level 1 [Member] | ||
Total assets at fair value | ||
Corporate equities [Member] | Fair Value Inputs Level 2 [Member] | ||
Total assets at fair value | $ 135 | $ 135 |
Corporate equities [Member] | Fair Value Inputs Level 3 [Member] | ||
Total assets at fair value | ||
Investment securities available for sale [Member] | ||
Total assets at fair value | $ 13,173 | $ 13,215 |
Investment securities available for sale [Member] | Fair Value Inputs Level 1 [Member] | ||
Total assets at fair value | ||
Investment securities available for sale [Member] | Fair Value Inputs Level 2 [Member] | ||
Total assets at fair value | $ 13,173 | $ 13,215 |
Investment securities available for sale [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 | Sep. 30, 2015 | Dec. 31, 2014 |
Other Real Estate Owned Loans | $ 2,462 | $ 3,507 |
Impaired loans | 13,398 | 13,223 |
Total assets at fair value | $ 15,860 | $ 16,730 |
Total liabilities at fair value | ||
Fair Value Inputs Level 1 [Member] | ||
Other Real Estate Owned Loans | ||
Impaired loans | ||
Total assets at fair value | ||
Total liabilities at fair value | ||
Fair Value Inputs Level 2 [Member] | ||
Other Real Estate Owned Loans | ||
Impaired loans | ||
Total assets at fair value | ||
Total liabilities at fair value | ||
Fair Value Inputs Level 3 [Member] | ||
Other Real Estate Owned Loans | $ 2,462 | $ 3,507 |
Impaired loans | 13,398 | 13,223 |
Total assets at fair value | $ 15,860 | $ 16,730 |
Total liabilities at fair value | ||
Construction/Land Development [Member] | ||
Impaired loans | $ 10,195 | $ 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 | $ 10,195 | $ 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 | $ 702 | $ 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 | $ 702 | $ 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 [Member] | ||
Impaired loans | $ 871 | $ 891 |
Commercial [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Commercial [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Commercial [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | $ 871 | $ 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 [Member] | ||
Impaired loans | $ 1,601 | |
Home Equity [Member] | Fair Value Inputs Level 1 [Member] | ||
Impaired loans | ||
Home Equity [Member] | Fair Value Inputs Level 2 [Member] | ||
Impaired loans | ||
Home Equity [Member] | Fair Value Inputs Level 3 [Member] | ||
Impaired loans | $ 1,601 | |
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 | $ 29 | |
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 | $ 29 |
7. Disclosures About Fair Val43
7. Disclosures About Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial Assets | ||
Loans, Estimated Fair Value | $ 568,774 | $ 551,338 |
Loans, Carrying value | 540,415 | 518,202 |
Financial Liabilities | ||
Time deposits, Estimated Fair Value | 170,548 | 196,826 |
Time deposits, Carrying Value | 169,528 | 195,464 |
Long-term debt, Estimated Fair Value | 39,610 | 9,862 |
Long-term debt, Carrying Value | $ 38,893 | $ 9,875 |
7. Disclosures About Fair Val44
7. Disclosures About Fair Value of Financial Instruments (Details Narrative) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Disclosures About Fair Value Of Financial Instruments Tables | ||
Impaired loans | $ 13,398,000 | $ 13,223,000 |
8. Troubled Debt Restructurin45
8. Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015USD ($)Integer | Sep. 30, 2015USD ($)Integer | Sep. 30, 2014USD ($)Integer | |
Number of Contracts | Integer | 7 | 15 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 3,238 | $ 6,008 | $ 204 |
Post-Modification Outstanding Recorded Investment | $ 3,238 | $ 6,008 | $ 204 |
Commercial [Member] | |||
Number of Contracts | Integer | 1 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 978 | $ 978 | |
Post-Modification Outstanding Recorded Investment | $ 978 | $ 978 | |
Real Estate [Member] | |||
Number of Contracts | Integer | 1 | 5 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 612 | $ 3,342 | $ 181 |
Post-Modification Outstanding Recorded Investment | $ 612 | $ 3,342 | $ 181 |
Home Equity [Member] | |||
Number of Contracts | Integer | 5 | 5 | |
Pre-Modification Outstanding Recorded Investment | $ 1,648 | $ 1,648 | |
Post-Modification Outstanding Recorded Investment | $ 1,648 | $ 1,648 | |
Credit Cards [Member] | |||
Number of Contracts | Integer | |||
Pre-Modification Outstanding Recorded Investment | |||
Post-Modification Outstanding Recorded Investment | |||
Consumer [Member] | |||
Number of Contracts | Integer | 4 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 40 | $ 23 | |
Post-Modification Outstanding Recorded Investment | $ 40 | $ 23 |