Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 12, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | F&M BANK CORP | |
Entity Central Index Key | 740,806 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
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 | 3,287,665 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income | ||||
Interest and fees on loans held for investment | $ 7,337 | $ 6,955 | $ 14,522 | $ 13,727 |
Interest and fees on loans held for sale | 518 | 322 | 890 | 513 |
Interest on federal funds sold and bank deposits | 6 | 3 | 14 | 8 |
Interest on debt securities | 70 | 93 | 139 | 136 |
Total interest income | 7,931 | 7,373 | 15,565 | 14,384 |
Interest expense | ||||
Interest on demand deposits | 126 | 157 | 245 | 314 |
Interest on savings accounts | 108 | 37 | 208 | 70 |
Interest on time deposits over $100,000 | 127 | 122 | 246 | 245 |
Interest on other time deposits | 230 | 231 | 450 | 472 |
Total interest on deposits | 591 | 547 | 1,149 | 1,101 |
Interest on borrowed funds | 271 | 151 | 527 | 252 |
Total interest expense | 862 | 698 | 1,676 | 1,383 |
Net interest income | 7,069 | 6,675 | 13,889 | 13,001 |
Provision for loan losses | 300 | |||
Net interest income after provision for loan losses | 7,069 | 6,675 | 13,889 | 12,701 |
Noninterest income | ||||
Service charges on deposit accounts | 272 | 236 | 506 | 462 |
Insurance and other commissions | 405 | 275 | 505 | 510 |
Other operating income | 373 | 519 | 802 | 999 |
Income on bank owned life insurance | 118 | 117 | 237 | 235 |
Low income housing partnership losses | (182) | (157) | (365) | (314) |
Total noninterest income | 986 | 990 | 1,685 | 1,892 |
Noninterest expense | ||||
Salaries | 2,080 | 1,875 | 4,163 | 3,693 |
Employee benefits | 602 | 539 | 1,299 | 1,163 |
Occupancy expense | 180 | 162 | 368 | 340 |
Equipment expense | 170 | 151 | 354 | 314 |
FDIC insurance assessment | 112 | 198 | 225 | 390 |
Other | 1,628 | 1,571 | 3,095 | 2,978 |
Total noninterest expense | 4,772 | 4,496 | 9,504 | 8,878 |
Income before income taxes | 3,283 | 3,169 | 6,070 | 5,715 |
Income tax expense | 839 | 943 | 1,532 | 1,592 |
Consolidated net income - F & M Bank Corp. | 2,444 | 2,226 | 4,538 | 4,123 |
Net income - Noncontrolling interest income | 86 | 50 | 90 | 76 |
Net Income - F & M Bank Corp | 2,358 | 2,176 | 4,448 | 4,047 |
Dividends paid/accumulated on preferred stock | 127 | 127 | 255 | 255 |
Net income available to common stockholders | $ 2,231 | $ 2,049 | $ 4,193 | $ 3,792 |
Per share data | ||||
Net income - basic | $ 0.68 | $ 0.62 | $ 1.28 | $ 1.15 |
Net income - diluted | 0.63 | 0.58 | 1.19 | 1.08 |
Cash dividends | $ 0.20 | $ 0.18 | $ 0.39 | $ 0.36 |
Weighted average shares outstanding - basic | 3,286,459 | 3,294,365 | 3,285,867 | 3,293,510 |
Weighted average shares outstanding - diluted | 3,730,859 | 3,738,765 | 3,730,267 | 3,737,910 |
Consolidated Statements of Inc3
Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Interest on time deposits | $ 100,000 | $ 100,000 | $ 100,000 | $ 100,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net Income: | ||||
Net Income - F & M Bank Corp | $ 2,358 | $ 2,176 | $ 4,448 | $ 4,047 |
Net Income attributable to noncontrolling interest | 86 | 50 | 90 | 76 |
Consolidated net income | 2,444 | 2,226 | 4,538 | 4,123 |
Other comprehensive income (loss): | ||||
Change in unrealized holding gains (losses) on available-for-sale securities | 8 | (1) | 37 | 23 |
Tax effect | (3) | (12) | (8) | |
Change in unrealized holding gain (loss), net of tax | 5 | (1) | 25 | 15 |
Total other comprehensive income (loss) | 5 | (1) | 25 | 15 |
Comprehensive income | $ 2,449 | $ 2,225 | $ 4,563 | $ 4,138 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 7,316 | $ 6,923 |
Money market funds | 1,275 | 1,596 |
Cash and cash equivalents | 8,591 | 8,519 |
Securities: | ||
Held to maturity - fair value of $125 in 2016 and 2015 | 125 | 125 |
Available for sale | 10,938 | 13,047 |
Other investments | 13,888 | 12,157 |
Loans held for sale | 97,211 | 57,806 |
Loans held for investment | 565,999 | 544,053 |
Less: allowance for loan losses | (8,068) | (8,781) |
Net loans held for investment | 557,931 | 535,272 |
Other real estate owned | 2,499 | 2,128 |
Bank premises and equipment, net | 9,214 | 7,542 |
Interest receivable | 1,851 | 1,709 |
Goodwill | 2,670 | 2,670 |
Bank owned life insurance | 13,278 | 13,046 |
Deferred tax asset | 1,377 | 1,640 |
Other assets | 10,465 | 9,696 |
Total assets | 730,038 | 665,357 |
Deposits: | ||
Noninterest bearing | 133,494 | 134,787 |
Interest bearing: | ||
Demand | 83,324 | 81,492 |
Money market accounts | 28,242 | 26,968 |
Savings | 99,737 | 90,383 |
Time deposits over $100,000 | 50,019 | 53,625 |
All other time deposits | 109,895 | 107,415 |
Total deposits | 504,711 | 494,670 |
Short-term borrowings | 59,418 | 24,954 |
Accrued liabilities | 13,731 | 14,622 |
Long-term borrowings | 66,196 | 48,161 |
Total liabilities | 644,056 | 582,407 |
Stockholders' Equity | ||
Preferred Stock $5 par value, 400,000 shares authorized, issued and outstanding For June 30, 2016 and December 31, 2015, respectively | 9,425 | 9,425 |
Common stock, $5 par value, 6,000,000 shares authorized, 3,287,521 and 3,293,909 shares issued and outstanding For June 30, 2016 and December 31, 2015, respectively | 16,438 | 16,427 |
Additional paid in capital - common stock | 11,188 | 11,149 |
Retained earnings | 50,997 | 48,056 |
Noncontrolling interest | 589 | 573 |
Accumulated other comprehensive loss | (2,655) | (2,680) |
Total stockholders' equity | 85,982 | 82,950 |
Total liabilities and stockholders' equity | $ 730,038 | $ 665,357 |
Consolidated Balance Sheets (U6
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Held to maturity - fair value | $ 125 | $ 125 |
Time deposits | $ 100,000 | $ 100,000 |
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 | 3,287,521 | 3,293,909 |
Common stock shares outstanding | 3,287,521 | 3,293,909 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities | ||
Net income | $ 4,448 | $ 4,047 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation | 401 | 348 |
Amortization of security premiums, net | 78 | 70 |
Origination of loans held for sale originated | (42,630) | (36,299) |
Sale of loans held for sale | 37,276 | 33,356 |
Provision for loan losses | 300 | |
Decrease (increase) in interest receivable | (142) | 11 |
Increase in other assets | (423) | (763) |
Increase (decrease) in accrued expenses | (965) | 735 |
Amortization of limited partnership investments | 365 | 314 |
Income from life insurance investment | (237) | (235) |
Loss on Other Real Estate Owned | 13 | 506 |
Net adjustments | (6,264) | (1,657) |
Net cash provided by (used in) operating activities | (1,816) | 2,390 |
Cash flows from investing activities | ||
Purchase of investments available for sale | (4,109) | (10,346) |
Proceeds from maturity of investments available for sale | 4,081 | 8,111 |
Net increase in loans held for investment | (23,250) | (14,487) |
Net increase in loans held for sale participations | (34,051) | (39,437) |
Proceeds from the sale of other real estate owned | 207 | 328 |
Purchase of property and equipment | (2,073) | (982) |
Net cash used in investing activities | (59,195) | (56,813) |
Cash flows from financing activities | ||
Net change in demand and savings deposits | 11,167 | 12,165 |
Net change in time deposits | (1,126) | (20,898) |
Net change in short-term debt | 34,463 | 33,729 |
Cash dividends paid | (1,506) | (1,440) |
Proceeds from issuance of common stock | 81 | 70 |
Proceeds from issuance of long-term debt | 20,000 | 15,000 |
Repurchase of common stock | (32) | (31) |
Repayment of long-term debt | (1,964) | (554) |
Net cash provided by financing activities | 61,083 | 38,039 |
Net increase (decrease) in Cash and Cash Equivalents | 72 | (16,384) |
Cash and cash equivalents, beginning of period | 8,519 | 23,203 |
Cash and cash equivalents, end of period | 8,591 | 6,819 |
Cash paid for: | ||
Interest expense | 1,675 | 710 |
Income taxes | 1,300 | 1,000 |
Transfer from loans to other real estate owned | 592 | |
Noncash exchange of other real estate owned | $ (227) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) $ in Thousands | USD ($) |
Balance, beginning of period at Dec. 31, 2014 | $ 77,798 |
Comprehensive income | |
Net Income - F & M Bank Corp | 4,047 |
Net income attributable to noncontrolling interest | 76 |
Other comprehensive income | 15 |
Total comprehensive income | 4,138 |
Minority interest capital distributions | (18) |
Issuance of common stock | 70 |
Repurchase of common stock | (31) |
Dividends paid | (1,440) |
Balance, end of period at Jun. 30, 2015 | 80,517 |
Balance, beginning of period at Dec. 31, 2015 | 82,950 |
Comprehensive income | |
Net Income - F & M Bank Corp | 4,448 |
Net income attributable to noncontrolling interest | 90 |
Other comprehensive income | 25 |
Total comprehensive income | 4,563 |
Minority interest capital distributions | (74) |
Issuance of common stock | 81 |
Repurchase of common stock | (32) |
Dividends paid | (1,506) |
Balance, end of period at Jun. 30, 2016 | $ 85,982 |
1. Summary of Significant Accou
1. Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
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 June 30, 2016 and the results of operations for the three and six months ended June 30, 2016 and 2015. The notes included herein should be read in conjunction with the notes to financial statements included in the 2015 annual report to shareholders of F & M Bank Corp. Note 1 to the 2015 Annual Report on Form 10-K filed with the SEC contains a description of the accounting policies followed by the Company and discussion of recent accounting pronouncements. The following paragraphs update that information as necessary. In January 2015, the FASB issued guidance to eliminate from U.S. GAAP the concept of an extraordinary item, which is an event or transaction that is both (1) unusual in nature and (2) infrequently occurring. Under the new guidance, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. The amendments were effective for the Company on January 1, 2016, and did not have a material effect on its financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under U.S. GAAP. The amendments were expected to result in the deconsolidation of many entities. The amendments were effective for the Company on January 1, 2016. The adoption of these amendments did not have a material effect on the Company’s financial statements. In April 2015, the FASB issued guidance which provides a practical expedient that permits the Company to measure defined benefit plan assets and obligations using the month-end that is closest to the Company’s fiscal year-end. The amendments were effective for the Company on January 1, 2016. The Company’s adoption of these amendments did not have a material effect on its financial statements. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. In August 2015, the FASB issued amendments to the Interest topic of the Accounting Standards Codification to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. The Company does not expect these amendments to have a material effect on its financial statements In November 2015, the FASB amended the Income Taxes topic of the Accounting Standards Codification to simplify the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments will be effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods with early adoption permitted as of the beginning of an interim or annual reporting period. The Company will apply the guidance prospectively. The Company does not expect these amendments to have a material effect on its financial statements. In January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for [fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance In February 2016, the FASB issued new guidance on accounting for leases, which generally requires all leases to be recognized in the statement of financial position. The provisions of this guidance are effective for reporting periods beginning after December 15, 2018; early adoption is permitted. These provisions are to be applied using a modified retrospective approach. The Company is evaluating the effect that this new guidance will have on our consolidated financial statements, but does not expect it will have a material effect on its financial statements. In March 2016, the FASB amended the Liabilities topic of the Accounting Standards Codification to address the current and potential future diversity in practice related to the derecognition of a prepaid stored-value product liability. The amendments will be effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance using a modified retrospective transition method by means of a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year in which the guidance is effective to each period presented. The Company does not expect these amendments to have a material effect on its financial statements. In March 2016, the FASB amended the Revenue from Contracts with Customers topic of the Accounting Standards Codification to clarify the implementation guidance on principal versus agent considerations and address how an entity should assess whether it is the principal or the agent in contracts that include three or more parties. In March 2016, the FASB issued guidance to simplify several aspects of the accounting for share-based payment award transactions including the income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. Additionally, the guidance simplifies two areas specific to entities other than public business entities allowing them apply a practical expedient to estimate the expected term for all awards with performance or service conditions that have certain characteristics and also allowing them to make a one-time election to switch from measuring all liability-classified awards at fair value to measuring them at intrinsic value. The amendments will be effective for the Company for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not expect these amendments to have a material effect on its financial statements. In April 2016, the FASB amended the Revenue from Contracts with Customers topic of the Accounting Standards Codification to clarify the guidance related to identifying performance obligations and accounting for licenses of intellectual property. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In May 2016, the FASB amended the Revenue from Contracts with Customers topic of the Accounting Standards Codification to clarify guidance related to collectability, noncash consideration, presentation of sales tax, and transition. The amendments will be effective for the Company for reporting periods beginning after December 15, 2017. The Company does not expect these amendments to have a material effect on its financial statements. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2019. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. Earnings per Share Accounting guidance specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements if those securities trade in a public market. Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding. Diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive common shares had been issued. The dilutive effect of conversion of preferred stock is reflected in the diluted earnings per share calculation. Net income available to common stockholders represents consolidated net income adjusted for preferred dividends declared. The following table provides a reconciliation of net income to net income available to common stockholders for the periods presented: For the Six months ended For the Quarter ended For the Six months ended For the Quarter ended In thousands of dollars June 30, 2016 June 30, 2016 June 30, 2015 June 30, 2015 Earnings available to common stockholders: Net income $ 4,538 $ 2,444 $ 4,123 $ 2,226 Minority interest 90 86 76 50 Preferred stock dividends 255 127 255 127 Net income available to common stockholders $ 4,193 $ 2,231 $ 3,792 $ 2,049 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated: Six months ended 6/30/2016 Six months ended 6/30/2015 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 4,192,677 3,285,867 $ 1.28 $ 3,792,184 3,293,510 $ 1.15 Effect of Dilutive Securities: Convertible Preferred Stock 255,000 444,400 (0.09 ) 255,500 444,400 (0.07 ) Diluted EPS $ 4,447,677 3,730,267 $ 1.19 $ 4,047,184 3,737,910 $ 1.08 |
2. Investment Securities
2. Investment Securities | 6 Months Ended |
Jun. 30, 2016 | |
Investment Securities | |
2. Investment Securities | Investment securities available for sale are carried in the consolidated balance sheets at their approximate market value, amortized cost and unrealized gains and losses at June 30, 2016 and December 31, 2015 are reflected in the table below. The amortized costs of investment securities held to maturity are carried in the consolidated balance sheets and their approximate market values at June 30, 2016 and December 31, 2015 are as follows: June 30, 2016 December 31, 2015 Market Market (in thousands) Cost Value Cost Value Securities held to maturity U. S. Treasury and agency obligations $ 125 $ 125 $ 125 $ 125 Total $ 125 $ 125 $ 125 $ 125 June 30, 2016 Unrealized Market Cost Gains Losses Value Securities available for sale U. S. Treasuries $ 4,011 $ 23 $ - $ 4,034 Government sponsored enterprises 6,023 10 8 6,025 Mortgage-backed securities 727 17 - 744 Marketable equities 135 - - 135 Total $ 10,896 $ 50 $ 8 $ 10,938 December 31, 2015 Unrealized Market Cost Gains Losses Value Securities available for sale U. S. Treasuries $ 4,015 $ 6 $ - $ 4,021 Government sponsored enterprises 8,081 4 11 8,074 Mortgage-backed securities 811 6 - 817 Marketable equities 135 - - 135 Total $ 13,042 $ 16 $ 11 $ 13,047 The amortized cost and fair value of securities at June 30, 2016, by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities Held to Maturity Securities Available for Sale Amortized Fair Amortized Fair (in thousands) Cost Value Cost Value Due in one year or less $ 125 $ 125 $ 4,011 $ 4,019 Due after one year through five years - - 6,023 6,040 Due after five years - - 862 879 Total $ 125 $ 125 $ 10,896 $ 10.938 There were no gains and losses on sales of securities in the second quarter of 2016 or 2015. There were also no securities with an other than temporary impairment. The fair value and gross unrealized losses for securities, segregated by the length of time that individual securities have been in a continuous gross unrealized loss position, at June 30, 2016 and December 31, 2015 were as follows (dollars in thousands): Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2016 Government sponsored Enterprises $ 6,000 $ (8 ) $ - $ - $ 6,000 $ (8 ) Total $ 6,000 $ (8 ) $ - $ - $ 6,000 $ (8 ) December 31, 2015 Government sponsored Enterprises $ 6,056 $ (11 ) $ - $ - $ 6,056 $ (11 ) Total $ 6,056 $ (11 ) $ - $ - $ 6,056 $ (11 ) Other investments, which consist of stock of correspondent banks and investments in low income housing projects, increased since December 31, 2015. This increase is due to FHLB stock purchases during the six months of 2016. |
3. Loans Held for Investment
3. Loans Held for Investment | 6 Months Ended |
Jun. 30, 2016 | |
Loans Held For Investment | |
3. Loans Held for Investment | Loans outstanding at June 30, 2016 and December 31, 2015 are summarized as follows (in thousands): 2016 2015 Construction/Land Development $ 76,017 $ 69,759 Farmland 12,867 13,378 Real Estate 169,140 166,587 Multi-Family 6,607 7,559 Commercial Real Estate 134,172 128,032 Home Equity – closed end 11,093 9,135 Home Equity – open end 56,359 56,599 Commercial & Industrial – Non-Real Estate 29,186 27,954 Consumer 7,945 8,219 Dealer Finance 59,947 54,086 Credit Cards 2,666 2,745 Total $ 565,999 $ 544,053 The following is a summary of information pertaining to impaired loans (in thousands): June 30, 2016 December 31, 2015 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Impaired loans without a valuation allowance: Construction/Land Development $ 1,091 $ 1,091 $ - $ 1,361 $ 1,499 $ - Farmland - - - - - - Real Estate 782 782 - 1,097 1,097 - Multi-Family - - - - - - Commercial Real Estate - - - 307 307 - Home Equity – closed end - - - - - - Home Equity – open end 1,582 1,582 - 1,159 1,159 - Commercial & Industrial – Non-Real Estate 175 175 - 181 181 - Consumer - - - 18 18 - Credit cards - - - - - - Dealer Finance 25 25 - 4 4 - 3,655 3,655 4,127 4,265 Impaired loans with a valuation allowance Construction/Land Development 10,022 10,022 1,775 11,534 11,534 2,373 Farmland - - - - - - Real Estate 1,218 1,218 227 324 324 238 Multi-Family - - - - - - Commercial Real Estate 961 961 63 890 890 18 Home Equity – closed end - - - - - - Home Equity – open end 1,408 1,408 587 1,414 1,414 269 Commercial & Industrial – Non-Real Estate 27 27 27 - - - Consumer - - - - - - Credit cards - - - - - - Dealer Finance 86 86 23 68 68 17 13,722 13,722 2,702 14,230 14,230 2,915 Total impaired loans $ 17,377 $ 17,377 $ 2,702 $ 18,357 $ 18,495 $ 2,915 The Recorded Investment is defined as the principal balance less principal payments and charge-offs. The following is a summary of the average investment and interest income recognized for impaired loans (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 1,164 $ (7 ) $ 3,883 $ 43 $ 2,135 $ 17 $ 4,678 $ 92 Farmland - - - - - - - - Real Estate 784 9 690 32 991 20 342 36 Multi-Family - - - - - - - - Commercial Real Estate 203 - 1,142 17 434 2 1,445 30 Home Equity – closed end - - - - - - - - Home Equity – open end 1,582 - 1,598 30 1,486 35 969 72 Commercial & Industrial – Non-Real Estate 177 3 188 4 181 6 207 6 Consumer and credit cards 9 - - - 11 - - - Dealer Finance 16 1 - - 6 2 - - 3,935 6 7,501 126 5,244 82 7,641 236 Impaired loans with a valuation allowance: Construction/Land Development 10,337 47 12,940 174 $ 11,478 $ 100 13,142 $ 191 Farmland - - - - - - - - Real Estate 1,221 10 746 17 818 26 850 18 Multi-Family - - - - - - - - Commercial Real Estate 965 14 888 2 919 28 952 2 Home Equity – closed end - - - - - - - - Home Equity – open end 1,407 9 - - 1,175 19 - - Commercial & Industrial – Non-Real Estate 27 1 - - 11 1 - - Consumer and credit card - - - - - - - - Dealer Finance 82 1 62 1 59 3 25 3 14,039 82 14,636 116 14,460 177 14,969 214 Total Impaired Loans $ 17,974 $ 88 $ 22,137 $ 242 $ 19,704 $ 259 $ 22,610 $ 450 |
4. Allowance for Loan Losses
4. Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2016 | |
Allowance For Loan Losses | |
4. Allowance for Loan Losses | A summary of the allowance for loan losses follows: June 30, 2016 (in thousands) 12/31/15 Charge-offs Recoveries Provision 6/30/16 Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 4,442 $ 294 $ 1 $ (767 ) $ 3,382 $ 1,775 $ 1,607 Farmland 95 — — (57 ) 38 — 38 Real Estate 806 23 4 244 1,031 227 804 Multi-Family 71 — — (47 ) 24 — 24 Commercial Real Estate 445 18 87 190 704 63 641 Home Equity – closed end 174 1 — (6 ) 167 — 167 Home Equity – open end 634 2 106 225 963 587 376 Commercial & Industrial – Non-Real Estate 1,055 246 3 (19 ) 793 27 766 Consumer 108 6 12 16 130 — 130 Dealer Finance 836 385 57 256 764 23 741 Credit Cards 115 32 24 (35 ) 72 — 72 Total $ 8,781 $ 1,007 $ 294 $ — $ 8,068 $ 2,702 $ 5,366 December 31, 2015 12/31/14 Balance Charge-offs Recoveries Provision 12/31/15 Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 4,738 $ 156 $ 85 $ (225 ) $ 4,442 $ 2,373 $ 2,069 Farmland — — — 95 95 — 95 Real Estate 623 25 37 171 806 238 568 Multi-Family — — — 71 71 — 71 Commercial Real Estate 126 — 65 254 445 18 427 Home Equity – closed end 188 26 6 6 174 — 174 Home Equity – open end 154 51 — 531 634 269 365 Commercial & Industrial – Non-Real Estate 1,211 — 62 (218 ) 1,055 — 1,055 Consumer 214 32 32 (106 ) 108 — 108 Dealer Finance 1,336 251 24 (273 ) 836 17 819 Credit Cards 135 60 46 (6 ) 115 — 115 Total $ 8,725 $ 601 $ 357 $ 300 $ 8,781 $ 2,915 $ 5,866 Recorded Investment in Loan Receivables (in thousands) June 30, 2016 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 76,017 $ 11,113 $ 64,904 Farmland 12,867 - 12,867 Real Estate 169,140 2,000 167,140 Multi-Family 6,607 - 6,607 Commercial Real Estate 134,172 961 133,211 Home Equity – closed end 11,093 - 11,093 Home Equity –open end 56,359 2,990 53,369 Commercial & Industrial – Non-Real Estate 29,186 202 28,984 Consumer 7,945 - 7,945 Dealer Finance 59,947 111 59,836 Credit Cards 2,666 - 2,666 Total $ 565,999 $ 17,377 $ 548,622 December 31, 2015 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 69,759 $ 12,895 $ 56,864 Farmland 13,378 - 13,378 Real Estate 166,587 1,421 165,167 Multi-Family 7,559 - 7,559 Commercial Real Estate 128,032 1,197 126,835 Home Equity – closed end 9,135 - 9,135 Home Equity –open end 56,599 2,573 54,026 Commercial & Industrial – Non-Real Estate 27,954 181 27,773 Consumer 8,219 18 8,201 Dealer Finance 54,086 72 54,013 Credit Cards 2,745 - 2,745 Total $ 544,053 $ 18,357 $ 525,696 Aging of Past Due Loans Receivable (in thousands) as of June 30, 2016 30-59 Days Past due 60-89 Days Past Due Greater than 90 Days (excluding non-accrual) Non-Accrual Loans Total Past Due Current Total Loan Receivable June 30, 2016 Construction/Land Development $ 50 $ - $ - $ 4,356 $ 4,406 $ 71,611 $ 76,017 Farmland - - - - - 12,867 12,867 Real Estate 1,815 722 - 636 3,173 165,967 169,140 Multi-Family - - - - - 6,607 6,607 Commercial Real Estate 168 - - - 168 134,004 134,172 Home Equity – closed end 10 - - 3 13 11,080 11,093 Home Equity – open end 635 1,508 - 237 2,380 53,979 56,359 Commercial & Industrial – Non- Real Estate 131 6 - 81 218 28,968 29,186 Consumer 73 12 1 - 86 7,859 7,945 Dealer Finance 687 205 131 100 1,123 58,824 59,947 Credit Card 12 7 - - 19 2,647 2,666 Total $ 3,581 $ 2,460 $ 132 $ 5,413 $ 11,586 $ 554,413 $ 565,999 Aging of Past Due Loans Receivable (in thousands) as of December 31, 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 December 31, 2015 Construction/Land Development $ 104 $ - $ - $ 4,688 $ 4,792 $ 64,967 $ 69,759 Farmland - - - - - 13,378 13,378 Real Estate 2,684 1,332 272 1,010 5,298 161,289 166,587 Multi-Family - - - - - 7,559 7,559 Commercial Real Estate 340 241 - - 581 127,451 128,032 Home Equity – closed end 41 7 - - 48 9,087 9,135 Home Equity – open end 918 46 107 40 1,111 55,488 56,599 Commercial & Industrial – Non- Real Estate 114 3 25 109 251 27,703 27,954 Consumer 120 10 - - 130 8,089 8,219 Dealer Finance 905 183 152 108 1,348 52,738 54,086 Credit Cards 10 13 15 - 38 2,707 2,745 Total $ 5,236 $ 1,835 $ 571 $ 5,955 $ 13,597 $ 530,456 $ 544,053 The following tables represent the corporate credit exposure by presenting the loan portfolio by the following credit quality indicators (loan grades): 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 CREDIT QUALITY INDICATORS (in thousands) AS OF JUNE 30, 2016 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 $ - $ 654 $ 11,682 $ 39,344 $ 11,622 $ 1,913 $ 10,802 $ - $ 76,017 Farmland 65 - 3,011 3,355 3,992 2,444 - - 12,867 Real Estate - 1,095 52,194 81,585 25,855 6,426 1,985 - 169,140 Multi-Family - 352 3,082 2,982 191 - - - 6,607 Commercial Real Estate - 1,911 26,049 76,480 23,451 3,490 2,791 - 134,172 Home Equity – closed end - - 3,502 4,119 2,026 1,443 3 - 11,093 Home Equity – open end 80 1,069 15,399 33,048 4,404 458 1,901 - 56,359 Commercial & Industrial (Non-Real Estate) 1,228 395 7,141 17,738 2,518 63 103 - 29,186 Total $ 1,373 $ 5,476 $ 122,060 $ 258,651 $ 74,059 $ 16,237 $ 17,585 $ - $ 495,441 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Credit Cards Consumer Performing $ 2,666 $ 67,660 Non performing - 232 Total $ 2,666 $ 67,892 CREDIT QUALITY INDICATORS (in thousands) AS OF DECEMBER 31, 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 $ - $ 485 $ 8,410 $ 31,783 $ 14,260 $ 3,216 $ 11,605 $ - $ 69,759 Farmland 66 - 2,615 3,768 4,952 1,977 - - 13,378 Real Estate - 955 54,400 76,545 23,695 8,334 2,658 - 166,587 Multi-Family - 391 3,925 3,046 197 - - - 7,559 Commercial Real Estate - 2,087 25,889 74,337 20,271 4,149 1,299 - 128,032 Home Equity – closed end - - 3,549 3,792 1,661 114 19 - 9,135 Home Equity – open end - 1,657 15,043 31,455 4,827 398 3,219 - 56,599 Commercial & Industrial (Non-Real Estate) 896 646 6,423 17,053 2,281 517 138 - 27,954 Total $ 962 $ 6,221 $ 120,254 $ 241,779 $ 72,144 $ 18,705 $ 18,938 $ - $ 479,003 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Credit Cards Consumer Performing $ 2,730 $ 62,046 Non performing 15 259 Total $ 2,745 $ 62,305 |
5. Employee Benefit Plan
5. Employee Benefit Plan | 6 Months Ended |
Jun. 30, 2016 | |
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 will not make any contributions for the 2016 plan year. The following is a summary of net periodic pension costs for the three and six-month periods ended June 30, 2016 and 2015. Six Months Ended Three Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Service cost $ 315,936 $ 324,167 $ 157,968 $ 162,084 Interest cost 226,448 205,472 113,224 102,736 Expected return on plan assets (427,208 ) (419,409 ) (213,604 ) (209,705 ) Amortization of net obligation at transition - Amortization of prior service cost (7,618 ) (7,618 ) (3,809 ) (3,809 ) Amortization of net (gain) or loss 111,572 90,321 55,786 45,161 Net periodic pension cost $ 219,130 $ 192,933 $ 109,565 $ 96,467 |
6. Fair Value
6. Fair Value | 6 Months Ended |
Jun. 30, 2016 | |
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 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – 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. Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement The following sections provide a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy: Securities: Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 securities would include U.S. agency securities, mortgage-backed agency securities, obligations of states and political subdivisions and certain corporate, asset backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Loans Held for Sale: Loans held for sale are short-term loans purchased at par for resale to investors at the par value of the loan. These loans are generally repurchased within 15 days. Because of the short-term nature and fixed repurchased price, the book value of these loans approximates fair value. Impaired Loans: ASC 820 applies to loans measured for impairment using the practical expedients permitted by ASC 310 including impaired loans measured at an observable market price (if available), or at the fair value of the loan’s collateral (if the loan is collateral dependent). Fair value of the loan’s collateral, when the loan is dependent on collateral, is determined by appraisals or independent valuation which is then adjusted for the cost related to liquidation of the collateral. Other Real Estate Owned: Certain assets such as other real estate owned (OREO) are measured at the lower of carrying amount or fair value less cost to sell. We believe that the fair value component in its valuation follows the provisions of ASC 820. Derivative Financial Instruments: The equity derivative contracts are purchased as part of our Indexed Certificate of Deposit (ICD) program and are an offset of an asset and liability. ICD values are measured on the S&P 500 Index. For level 3 assets and liabilities measured at fair value on a recurring basis or non-recurring basis as of June 30, 2016 and December 31, 2015 and significant unobservable inputs used in the fair value measurements were as follows (in thousands): Fair Value at June 30, 2016 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 11,020 Discounted appraised value Discount for selling costs and age of appraisals 15%-55% Other Real Estate Owned $ 2,499 Discounted appraised value Discount for selling costs and age of appraisals 15%-55% Fair Value at December 31, 2015 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 11,315 Discounted appraised value Discount for selling costs and age of appraisals 15%-55% Other Real Estate Owned $ 2,128 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). June 30, 2016 Total Level 1 Level 2 Level 3 U. S. Treasuries $ 4,034 $ - $ 4,034 $ - Government sponsored enterprises 6,025 - 6,025 - Mortgage-backed obligations of federal agencies 744 - 744 - Marketable Equities 135 - 135 - Investment securities available for sale $ 10,938 - $ 10,938 - Total assets at fair value $ 10,938 $ - $ 10,938 $ - Total liabilities at fair value $ - $ - $ - $ - Derivative financial instruments at fair value $ 15 $ - $ 15 $ - December 31, 2015 Total Level 1 Level 2 Level 3 U. S. Treasuries $ 4,021 $ - $ 4,021 $ - Government sponsored enterprises 8,074 - 8,074 - Mortgage-backed obligations of federal agencies 817 - 817 - Marketable Equities 135 - 135 - Investment securities available for sale 13,047 - 13,047 - Total assets at fair value $ 13,047 $ - $ 13,047 $ - Total liabilities at fair value $ - $ - $ - $ - Derivative financial instruments at fair value $ 15 $ - $ 15 $ - Assets and Liabilities Recorded at Fair Value on a Non-recurring Basis The table below presents the recorded amount of assets and liabilities measured at fair value (in thousands) on a non-recurring basis. The Company has determined that Other Real Estate Owned and Impaired Loans are Level 3. June 30, 2016 Total Level 1 Level 2 Level 3 Other Real Estate Owned $ 2,499 - - $ 2,499 - - Construction/Land Development 8,247 - - 8,247 Farmland - - - - Real Estate 991 - - 991 Multi-Family - - - - Commercial Real Estate 898 - - 898 Home Equity – closed end - - - - Home Equity – open end 821 - - 821 Commercial & Industrial – Non-Real Estate - - - - Consumer - - - - Credit cards - - - - Dealer Finance 63 - - 63 Impaired loans 11,020 - - 11,020 Loans held for sale 97,211 - 97,211 - Total assets at fair value $ 110,730 $ - $ 97,211 $ 13,519 Total liabilities at fair value $ - $ - $ - $ - December 31, 2015 Total Level 1 Level 2 Level 3 Other Real Estate Owned $ 2,128 - - $ 2,128 - - Construction/Land Development 9,161 - - 9,161 Farmland - - - - Real Estate 85 - - 85 Multi-Family - - - - Commercial Real Estate 872 - - 872 Home Equity – closed end - - - - Home Equity – open end 1,145 - - 1,145 Commercial & Industrial – Non-Real Estate - - - - Consumer - - - - Credit cards - - - - Dealer Finance 52 - - 52 Impaired loans 11,315 - - 11,315 Loans held for sale 57,806 - 57,806 - Total assets at fair value $ 71,249 - $ 57,806 $ 13,443 Total liabilities at fair value $ - $ - $ - $ - |
7. Disclosures About Fair Value
7. Disclosures About Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Disclosures About Fair Value Of Financial Instruments | |
7. Disclosures About Fair Value of Financial Instruments | ASC 825 “Financial Instruments” defines the fair value of a financial instrument as the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced liquidation or sale. As the majority of the Bank’s financial instruments lack an available trading market, significant estimates, assumptions and present value calculations are required to determine estimated fair value. The following presents the carrying amount, fair value and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2016 and December 31, 2015. June 30, 2016 December 31, 2015 Estimated Carrying Estimated Carrying Fair Value Value Fair Value Value Financial Assets Cash and cash equivalents $ 8,591 $ 8,591 $ 8,519 $ 8,519 Loans 576,242 565,999 555,762 544,053 Loans held for sale 97,211 97,211 57,806 57,806 Interest receivable 1,851 1,851 1,709 1,709 Investments 24,951 24,909 25,329 25,324 Financial Liabilities Time deposits 161,270 159,914 162,524 161,040 Short-term debt 59,418 59,418 24,954 24,954 Long-term debt 66,891 66,196 48,565 48,161 The carrying value of cash and cash equivalents, deposits with no stated maturities, and accrued interest approximate fair value. The fair value of securities was calculated using the most recent transaction price or a pricing model, which takes into consideration maturity, yields and quality. The remaining financial instruments were valued based on the present value of estimated future cash flows, discounted at various rates in effect for similar instruments entered into as of the end of each respective period shown above. |
8. Troubled Debt Restructuring
8. Troubled Debt Restructuring | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Asset Types | |
8. Troubled Debt Restructuring | In the determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings by adjusting the loan grades of such loans, which figure into the environmental factors associated with the allowance. Defaults resulting in charge-offs affect the historical loss experience ratios which are a component of the allowance calculation. Additionally, specific reserves may be established on restructured loans evaluated individually. During the six months ended June 30, 2016, there were six loan modification that were considered to be troubled debt restructurings. Modifications may have included rate adjustments, revisions to amortization schedules, suspension of principal payments for a temporary period, re-advancing funds to be applied as payments to bring the loan(s) current, or any combination thereof. Six Months ended June 30, 2016 Pre-Modification Post-Modification (in thousands) Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Commercial 1 $ 27 $ 27 Real Estate 2 143 143 Consumer 3 36 36 Total 6 $ 206 $ 206 During the quarter ended June 30, 2016, there were five loans modifications that were considered to be troubled debt restructurings. Three Months ended June 30, 2016 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Commercial 1 $ 27 $ 27 Real Estate 2 143 143 Consumer 2 19 19 Total 5 $ 189 $ 189 At June 30, 2016, six loans that had been restructured in the previous 12 months, were in default or were on nonaccrual status. A restructured loan is considered in default when it becomes 90 days past due. June 30, 2016 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Real Estate 5 $ 1,528 $ 1,528 Consumer 1 16 16 Total 6 $ 1,544 $ 1,544 During the six months ended June 30, 2015, there were eight loan modifications that were considered to be troubled debt restructurings. Modifications may have included rate adjustments, revisions to amortization schedules, suspension of principal payments for a temporary period, re-advancing funds to be applied as payments to bring the loan(s) current, or any combination thereof. Six Months ended June 30, 2015 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Real Estate 4 $ 2,724 $ 2,724 Consumer 4 43 43 Total 8 $ 2,767 $ 2,767 During the quarter ended June 30, 2015, there were five loan modifications that were considered to be troubled debt restructurings. Three Months ended June 30, 2015 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Real Estate 4 $ 2,724 $ 2,724 Consumer 1 6 6 Total 5 $ 2,730 $ 2,730 At June 30, 2015, one real estate loan (outstanding recorded investment of $95,000) that had been restructured in the previous 12 months, was in default or was on nonaccrual status. A restructured loan is considered in default when it becomes 90 days past due. |
1. Summary of Significant Acc17
1. Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Summary Of Significant Accounting Policies Policies | |
Earnings per Share | Accounting guidance specifies the computation, presentation and disclosure requirements for earnings per share (“EPS”) for entities with publicly held common stock or potential common stock such as options, warrants, convertible securities or contingent stock agreements if those securities trade in a public market. Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding. Diluted EPS is similar to the computation of basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive common shares had been issued. The dilutive effect of conversion of preferred stock is reflected in the diluted earnings per share calculation. Net income available to common stockholders represents consolidated net income adjusted for preferred dividends declared. The following table provides a reconciliation of net income to net income available to common stockholders for the periods presented: For the Six months ended For the Quarter ended For the Six months ended For the Quarter ended In thousands of dollars June 30, 2016 June 30, 2016 June 30, 2015 June 30, 2015 Earnings available to common stockholders: Net income $ 4,538 $ 2,444 $ 4,123 $ 2,226 Minority interest 90 86 76 50 Preferred stock dividends 255 127 255 127 Net income available to common stockholders $ 4,193 $ 2,231 $ 3,792 $ 2,049 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated: Six months ended 6/30/2016 Six months ended 6/30/2015 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 4,192,677 3,285,867 $ 1.28 $ 3,792,184 3,293,510 $ 1.15 Effect of Dilutive Securities: Convertible Preferred Stock 255,000 444,400 (0.09 ) 255,500 444,400 (0.07 ) Diluted EPS $ 4,447,677 3,730,267 $ 1.19 $ 4,047,184 3,737,910 $ 1.08 |
1. Summary of Significant Acc18
1. Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 Six months ended For the Quarter ended For the Six months ended For the Quarter ended In thousands of dollars June 30, 2016 June 30, 2016 June 30, 2015 June 30, 2015 Earnings available to common stockholders: Net income $ 4,538 $ 2,444 $ 4,123 $ 2,226 Minority interest 90 86 76 50 Preferred stock dividends 255 127 255 127 Net income available to common stockholders $ 4,193 $ 2,231 $ 3,792 $ 2,049 The following table shows the effect of dilutive preferred stock conversion on the Company's earnings per share for the periods indicated: Six months ended 6/30/2016 Six months ended 6/30/2015 Income Shares Per Share Amounts Income Shares Per Share Amounts Basic EPS $ 4,192,677 3,285,867 $ 1.28 $ 3,792,184 3,293,510 $ 1.15 Effect of Dilutive Securities: Convertible Preferred Stock 255,000 444,400 (0.09 ) 255,500 444,400 (0.07 ) Diluted EPS $ 4,447,677 3,730,267 $ 1.19 $ 4,047,184 3,737,910 $ 1.08 |
2. Investment Securities (Table
2. Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investment Securities Tables | |
Securities Impairment | The amortized costs of investment securities held to maturity are carried in the consolidated balance sheets and their approximate market values at June 30, 2016 and December 31, 2015 are as follows: June 30, 2016 December 31, 2015 Market Market (in thousands) Cost Value Cost Value Securities held to maturity U. S. Treasury and agency obligations $ 125 $ 125 $ 125 $ 125 Total $ 125 $ 125 $ 125 $ 125 June 30, 2016 Unrealized Market Cost Gains Losses Value Securities available for sale U. S. Treasuries $ 4,011 $ 23 $ - $ 4,034 Government sponsored enterprises 6,023 10 8 6,025 Mortgage-backed securities 727 17 - 744 Marketable equities 135 - - 135 Total $ 10,896 $ 50 $ 8 $ 10,938 December 31, 2015 Unrealized Market Cost Gains Losses Value Securities available for sale U. S. Treasuries $ 4,015 $ 6 $ - $ 4,021 Government sponsored enterprises 8,081 4 11 8,074 Mortgage-backed securities 811 6 - 817 Marketable equities 135 - - 135 Total $ 13,042 $ 16 $ 11 $ 13,047 |
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 (in thousands) Cost Value Cost Value Due in one year or less $ 125 $ 125 $ 4,011 $ 4,019 Due after one year through five years - - 6,023 6,040 Due after five years - - 862 879 Total $ 125 $ 125 $ 10,896 $ 10.938 |
Schedule of Securities with Unrealized Losses | The fair value and gross unrealized losses for securities, segregated by the length of time that individual securities have been in a continuous gross unrealized loss position, at June 30, 2016 and December 31, 2015 were as follows (dollars in thousands): Less than 12 Months More than 12 Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2016 Government sponsored Enterprises $ 6,000 $ (8 ) $ - $ - $ 6,000 $ (8 ) Total $ 6,000 $ (8 ) $ - $ - $ 6,000 $ (8 ) December 31, 2015 Government sponsored Enterprises $ 6,056 $ (11 ) $ - $ - $ 6,056 $ (11 ) Total $ 6,056 $ (11 ) $ - $ - $ 6,056 $ (11 ) |
3. Loans Held for Investment (T
3. Loans Held for Investment (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Loans Held For Investment Tables | |
Schedule of Loans Outstanding | Loans outstanding at June 30, 2016 and December 31, 2015 are summarized as follows (in thousands): 2016 2015 Construction/Land Development $ 76,017 $ 69,759 Farmland 12,867 13,378 Real Estate 169,140 166,587 Multi-Family 6,607 7,559 Commercial Real Estate 134,172 128,032 Home Equity – closed end 11,093 9,135 Home Equity – open end 56,359 56,599 Commercial & Industrial – Non-Real Estate 29,186 27,954 Consumer 7,945 8,219 Dealer Finance 59,947 54,086 Credit Cards 2,666 2,745 Total $ 565,999 $ 544,053 |
Schedule Impaired Loans | The following is a summary of information pertaining to impaired loans (in thousands): June 30, 2016 December 31, 2015 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance Impaired loans without a valuation allowance: Construction/Land Development $ 1,091 $ 1,091 $ - $ 1,361 $ 1,499 $ - Farmland - - - - - - Real Estate 782 782 - 1,097 1,097 - Multi-Family - - - - - - Commercial Real Estate - - - 307 307 - Home Equity – closed end - - - - - - Home Equity – open end 1,582 1,582 - 1,159 1,159 - Commercial & Industrial – Non-Real Estate 175 175 - 181 181 - Consumer - - - 18 18 - Credit cards - - - - - - Dealer Finance 25 25 - 4 4 - 3,655 3,655 4,127 4,265 Impaired loans with a valuation allowance Construction/Land Development 10,022 10,022 1,775 11,534 11,534 2,373 Farmland - - - - - - Real Estate 1,218 1,218 227 324 324 238 Multi-Family - - - - - - Commercial Real Estate 961 961 63 890 890 18 Home Equity – closed end - - - - - - Home Equity – open end 1,408 1,408 587 1,414 1,414 269 Commercial & Industrial – Non-Real Estate 27 27 27 - - - Consumer - - - - - - Credit cards - - - - - - Dealer Finance 86 86 23 68 68 17 13,722 13,722 2,702 14,230 14,230 2,915 Total impaired loans $ 17,377 $ 17,377 $ 2,702 $ 18,357 $ 18,495 $ 2,915 |
Recorded Investment | The following is a summary of the average investment and interest income recognized for impaired loans (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized Impaired loans without a valuation allowance: Construction/Land Development $ 1,164 $ (7 ) $ 3,883 $ 43 $ 2,135 $ 17 $ 4,678 $ 92 Farmland - - - - - - - - Real Estate 784 9 690 32 991 20 342 36 Multi-Family - - - - - - - - Commercial Real Estate 203 - 1,142 17 434 2 1,445 30 Home Equity – closed end - - - - - - - - Home Equity – open end 1,582 - 1,598 30 1,486 35 969 72 Commercial & Industrial – Non-Real Estate 177 3 188 4 181 6 207 6 Consumer and credit cards 9 - - - 11 - - - Dealer Finance 16 1 - - 6 2 - - 3,935 6 7,501 126 5,244 82 7,641 236 Impaired loans with a valuation allowance: Construction/Land Development 10,337 47 12,940 174 $ 11,478 $ 100 13,142 $ 191 Farmland - - - - - - - - Real Estate 1,221 10 746 17 818 26 850 18 Multi-Family - - - - - - - - Commercial Real Estate 965 14 888 2 919 28 952 2 Home Equity – closed end - - - - - - - - Home Equity – open end 1,407 9 - - 1,175 19 - - Commercial & Industrial – Non-Real Estate 27 1 - - 11 1 - - Consumer and credit card - - - - - - - - Dealer Finance 82 1 62 1 59 3 25 3 14,039 82 14,636 116 14,460 177 14,969 214 Total Impaired Loans $ 17,974 $ 88 $ 22,137 $ 242 $ 19,704 $ 259 $ 22,610 $ 450 |
4. Allowance for Loan Losses (T
4. Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Allowance For Loan Losses Tables | |
Summary Loan Loss Allowance Transactions | A summary of the allowance for loan losses follows: June 30, 2016 (in thousands) 12/31/15 Charge-offs Recoveries Provision 6/30/16 Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 4,442 $ 294 $ 1 $ (767 ) $ 3,382 $ 1,775 $ 1,607 Farmland 95 — — (57 ) 38 — 38 Real Estate 806 23 4 244 1,031 227 804 Multi-Family 71 — — (47 ) 24 — 24 Commercial Real Estate 445 18 87 190 704 63 641 Home Equity – closed end 174 1 — (6 ) 167 — 167 Home Equity – open end 634 2 106 225 963 587 376 Commercial & Industrial – Non-Real Estate 1,055 246 3 (19 ) 793 27 766 Consumer 108 6 12 16 130 — 130 Dealer Finance 836 385 57 256 764 23 741 Credit Cards 115 32 24 (35 ) 72 — 72 Total $ 8,781 $ 1,007 $ 294 $ — $ 8,068 $ 2,702 $ 5,366 December 31, 2015 12/31/14 Balance Charge-offs Recoveries Provision 12/31/15 Balance Individually Evaluated for Impairment Collectively Evaluated for Impairment Allowance for loan losses: Construction/Land Development $ 4,738 $ 156 $ 85 $ (225 ) $ 4,442 $ 2,373 $ 2,069 Farmland — — — 95 95 — 95 Real Estate 623 25 37 171 806 238 568 Multi-Family — — — 71 71 — 71 Commercial Real Estate 126 — 65 254 445 18 427 Home Equity – closed end 188 26 6 6 174 — 174 Home Equity – open end 154 51 — 531 634 269 365 Commercial & Industrial – Non-Real Estate 1,211 — 62 (218 ) 1,055 — 1,055 Consumer 214 32 32 (106 ) 108 — 108 Dealer Finance 1,336 251 24 (273 ) 836 17 819 Credit Cards 135 60 46 (6 ) 115 — 115 Total $ 8,725 $ 601 $ 357 $ 300 $ 8,781 $ 2,915 $ 5,866 |
Recorded Investment in Loan Receivables | Recorded Investment in Loan Receivables (in thousands) June 30, 2016 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 76,017 $ 11,113 $ 64,904 Farmland 12,867 - 12,867 Real Estate 169,140 2,000 167,140 Multi-Family 6,607 - 6,607 Commercial Real Estate 134,172 961 133,211 Home Equity – closed end 11,093 - 11,093 Home Equity –open end 56,359 2,990 53,369 Commercial & Industrial – Non-Real Estate 29,186 202 28,984 Consumer 7,945 - 7,945 Dealer Finance 59,947 111 59,836 Credit Cards 2,666 - 2,666 Total $ 565,999 $ 17,377 $ 548,622 December 31, 2015 Loan Receivable Individually Evaluated for Impairment Collectively Evaluated for Impairment Construction/Land Development $ 69,759 $ 12,895 $ 56,864 Farmland 13,378 - 13,378 Real Estate 166,587 1,421 165,167 Multi-Family 7,559 - 7,559 Commercial Real Estate 128,032 1,197 126,835 Home Equity – closed end 9,135 - 9,135 Home Equity –open end 56,599 2,573 54,026 Commercial & Industrial – Non-Real Estate 27,954 181 27,773 Consumer 8,219 18 8,201 Dealer Finance 54,086 72 54,013 Credit Cards 2,745 - 2,745 Total $ 544,053 $ 18,357 $ 525,696 |
Schedule of Aging of Past Due Receivables | Aging of Past Due Loans Receivable (in thousands) as of June 30, 2016 30-59 Days Past due 60-89 Days Past Due Greater than 90 Days (excluding non-accrual) Non-Accrual Loans Total Past Due Current Total Loan Receivable June 30, 2016 Construction/Land Development $ 50 $ - $ - $ 4,356 $ 4,406 $ 71,611 $ 76,017 Farmland - - - - - 12,867 12,867 Real Estate 1,815 722 - 636 3,173 165,967 169,140 Multi-Family - - - - - 6,607 6,607 Commercial Real Estate 168 - - - 168 134,004 134,172 Home Equity – closed end 10 - - 3 13 11,080 11,093 Home Equity – open end 635 1,508 - 237 2,380 53,979 56,359 Commercial & Industrial – Non- Real Estate 131 6 - 81 218 28,968 29,186 Consumer 73 12 1 - 86 7,859 7,945 Dealer Finance 687 205 131 100 1,123 58,824 59,947 Credit Card 12 7 - - 19 2,647 2,666 Total $ 3,581 $ 2,460 $ 132 $ 5,413 $ 11,586 $ 554,413 $ 565,999 Aging of Past Due Loans Receivable (in thousands) as of December 31, 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 December 31, 2015 Construction/Land Development $ 104 $ - $ - $ 4,688 $ 4,792 $ 64,967 $ 69,759 Farmland - - - - - 13,378 13,378 Real Estate 2,684 1,332 272 1,010 5,298 161,289 166,587 Multi-Family - - - - - 7,559 7,559 Commercial Real Estate 340 241 - - 581 127,451 128,032 Home Equity – closed end 41 7 - - 48 9,087 9,135 Home Equity – open end 918 46 107 40 1,111 55,488 56,599 Commercial & Industrial – Non- Real Estate 114 3 25 109 251 27,703 27,954 Consumer 120 10 - - 130 8,089 8,219 Dealer Finance 905 183 152 108 1,348 52,738 54,086 Credit Cards 10 13 15 - 38 2,707 2,745 Total $ 5,236 $ 1,835 $ 571 $ 5,955 $ 13,597 $ 530,456 $ 544,053 |
Corporate Credit Exposure | CREDIT QUALITY INDICATORS (in thousands) AS OF JUNE 30, 2016 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 $ - $ 654 $ 11,682 $ 39,344 $ 11,622 $ 1,913 $ 10,802 $ - $ 76,017 Farmland 65 - 3,011 3,355 3,992 2,444 - - 12,867 Real Estate - 1,095 52,194 81,585 25,855 6,426 1,985 - 169,140 Multi-Family - 352 3,082 2,982 191 - - - 6,607 Commercial Real Estate - 1,911 26,049 76,480 23,451 3,490 2,791 - 134,172 Home Equity – closed end - - 3,502 4,119 2,026 1,443 3 - 11,093 Home Equity – open end 80 1,069 15,399 33,048 4,404 458 1,901 - 56,359 Commercial & Industrial (Non-Real Estate) 1,228 395 7,141 17,738 2,518 63 103 - 29,186 Total $ 1,373 $ 5,476 $ 122,060 $ 258,651 $ 74,059 $ 16,237 $ 17,585 $ - $ 495,441 CREDIT QUALITY INDICATORS (in thousands) AS OF DECEMBER 31, 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 $ - $ 485 $ 8,410 $ 31,783 $ 14,260 $ 3,216 $ 11,605 $ - $ 69,759 Farmland 66 - 2,615 3,768 4,952 1,977 - - 13,378 Real Estate - 955 54,400 76,545 23,695 8,334 2,658 - 166,587 Multi-Family - 391 3,925 3,046 197 - - - 7,559 Commercial Real Estate - 2,087 25,889 74,337 20,271 4,149 1,299 - 128,032 Home Equity – closed end - - 3,549 3,792 1,661 114 19 - 9,135 Home Equity – open end - 1,657 15,043 31,455 4,827 398 3,219 - 56,599 Commercial & Industrial (Non-Real Estate) 896 646 6,423 17,053 2,281 517 138 - 27,954 Total $ 962 $ 6,221 $ 120,254 $ 241,779 $ 72,144 $ 18,705 $ 18,938 $ - $ 479,003 |
Consumer Credit Exposure | Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Credit Cards Consumer Performing $ 2,666 $ 67,660 Non performing - 232 Total $ 2,666 $ 67,892 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Credit Cards Consumer Performing $ 2,730 $ 62,046 Non performing 15 259 Total $ 2,745 $ 62,305 |
5. Employee Benefit Plan (Table
5. Employee Benefit Plan (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
EmployeeBenefitPlanTablesAbstract | |
Schedule of Employee Benefit Plan | The following is a summary of net periodic pension costs for the three and six-month periods ended June 30, 2016 and 2015. Six Months Ended Three Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Service cost $ 315,936 $ 324,167 $ 157,968 $ 162,084 Interest cost 226,448 205,472 113,224 102,736 Expected return on plan assets (427,208 ) (419,409 ) (213,604 ) (209,705 ) Amortization of net obligation at transition - Amortization of prior service cost (7,618 ) (7,618 ) (3,809 ) (3,809 ) Amortization of net (gain) or loss 111,572 90,321 55,786 45,161 Net periodic pension cost $ 219,130 $ 192,933 $ 109,565 $ 96,467 |
6. Fair Value (Tables)
6. Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Tables | |
Fair value measurements | For level 3 assets and liabilities measured at fair value on a recurring basis or non-recurring basis as of June 30, 2016 and December 31, 2015 and significant unobservable inputs used in the fair value measurements were as follows (in thousands): Fair Value at June 30, 2016 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 11,020 Discounted appraised value Discount for selling costs and age of appraisals 15%-55% Other Real Estate Owned $ 2,499 Discounted appraised value Discount for selling costs and age of appraisals 15%-55% Fair Value at December 31, 2015 Valuation Technique Significant Unobservable Inputs Range Impaired Loans $ 11,315 Discounted appraised value Discount for selling costs and age of appraisals 15%-55% Other Real Estate Owned $ 2,128 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). June 30, 2016 Total Level 1 Level 2 Level 3 U. S. Treasuries $ 4,034 $ - $ 4,034 $ - Government sponsored enterprises 6,025 - 6,025 - Mortgage-backed obligations of federal agencies 744 - 744 - Marketable Equities 135 - 135 - Investment securities available for sale $ 10,938 - $ 10,938 - Total assets at fair value $ 10,938 $ - $ 10,938 $ - Total liabilities at fair value $ - $ - $ - $ - Derivative financial instruments at fair value $ 15 $ - $ 15 $ - December 31, 2015 Total Level 1 Level 2 Level 3 U. S. Treasuries $ 4,021 $ - $ 4,021 $ - Government sponsored enterprises 8,074 - 8,074 - Mortgage-backed obligations of federal agencies 817 - 817 - Marketable Equities 135 - 135 - Investment securities available for sale 13,047 - 13,047 - Total assets at fair value $ 13,047 $ - $ 13,047 $ - Total liabilities at fair value $ - $ - $ - $ - Derivative financial instruments at fair value $ 15 $ - $ 15 $ - |
Schedule of Assets and Liabilities at Fair Value on Non-recurring Basis | The Company has determined that Other Real Estate Owned and Impaired Loans are Level 3. June 30, 2016 Total Level 1 Level 2 Level 3 Other Real Estate Owned $ 2,499 - - $ 2,499 - - Construction/Land Development 8,247 - - 8,247 Farmland - - - - Real Estate 991 - - 991 Multi-Family - - - - Commercial Real Estate 898 - - 898 Home Equity – closed end - - - - Home Equity – open end 821 - - 821 Commercial & Industrial – Non-Real Estate - - - - Consumer - - - - Credit cards - - - - Dealer Finance 63 - - 63 Impaired loans 11,020 - - 11,020 Loans held for sale 97,211 - 97,211 - Total assets at fair value $ 110,730 $ - $ 97,211 $ 13,519 Total liabilities at fair value $ - $ - $ - $ - December 31, 2015 Total Level 1 Level 2 Level 3 Other Real Estate Owned $ 2,128 - - $ 2,128 - - Construction/Land Development 9,161 - - 9,161 Farmland - - - - Real Estate 85 - - 85 Multi-Family - - - - Commercial Real Estate 872 - - 872 Home Equity – closed end - - - - Home Equity – open end 1,145 - - 1,145 Commercial & Industrial – Non-Real Estate - - - - Consumer - - - - Credit cards - - - - Dealer Finance 52 - - 52 Impaired loans 11,315 - - 11,315 Loans held for sale 57,806 - 57,806 - Total assets at fair value $ 71,249 - $ 57,806 $ 13,443 Total liabilities at fair value $ - $ - $ - $ - |
7. Disclosures About Fair Val24
7. Disclosures About Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosures About Fair Value Of Financial Instruments Tables | |
Carrying Value and Estimated Fair Value for Financial Instruments | The following presents the carrying amount, fair value and placement in the fair value hierarchy of the CompanyÂ’s financial instruments as of June 30, 2016 and December 31, 2015. June 30, 2016 December 31, 2015 Estimated Carrying Estimated Carrying Fair Value Value Fair Value Value Financial Assets Cash and cash equivalents $ 8,591 $ 8,591 $ 8,519 $ 8,519 Loans 576,242 565,999 555,762 544,053 Loans held for sale 97,211 97,211 57,806 57,806 Interest receivable 1,851 1,851 1,709 1,709 Investments 24,951 24,909 25,329 25,324 Financial Liabilities Time deposits 161,270 159,914 162,524 161,040 Short-term debt 59,418 59,418 24,954 24,954 Long-term debt 66,891 66,196 48,565 48,161 |
8. Troubled Debt Restructuring
8. Troubled Debt Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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. Six Months ended June 30, 2016 Pre-Modification Post-Modification (in thousands) Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Commercial 1 $ 27 $ 27 Real Estate 2 143 143 Consumer 3 36 36 Total 6 $ 206 $ 206 During the quarter ended June 30, 2016, there were five loans modifications that were considered to be troubled debt restructurings. Three Months ended June 30, 2016 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Commercial 1 $ 27 $ 27 Real Estate 2 143 143 Consumer 2 19 19 Total 5 $ 189 $ 189 A restructured loan is considered in default when it becomes 90 days past due. June 30, 2016 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Real Estate 5 $ 1,528 $ 1,528 Consumer 1 16 16 Total 6 $ 1,544 $ 1,544 Modifications may have included rate adjustments, revisions to amortization schedules, suspension of principal payments for a temporary period, re-advancing funds to be applied as payments to bring the loan(s) current, or any combination thereof. Six Months ended June 30, 2015 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Real Estate 4 $ 2,724 $ 2,724 Consumer 4 43 43 Total 8 $ 2,767 $ 2,767 During the quarter ended June 30, 2015, there were five loan modifications that were considered to be troubled debt restructurings. Three Months ended June 30, 2015 Pre-Modification Post-Modification Outstanding Outstanding Number of Contracts Recorded Investment Recorded Investment Troubled Debt Restructurings Real Estate 4 $ 2,724 $ 2,724 Consumer 1 6 6 Total 5 $ 2,730 $ 2,730 |
1. Summary of Significant Acc26
1. Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings available to common stockholders: | ||||
Net income | $ 2,444 | $ 2,226 | $ 4,538 | $ 4,123 |
Minority interest | 86 | 50 | 90 | 76 |
Preferred stock dividends | 127 | 127 | 255 | 255 |
Net income available to common stockholders | $ 2,231 | $ 2,049 | $ 4,193 | $ 3,792 |
1. Summary of Significant Acc27
1. Summary of Significant Accounting Policies (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary Of Significant Accounting Policies | ||||
Basic EPS, Income | $ 2,231 | $ 2,049 | $ 4,193 | $ 3,792 |
Effect of Dilutive Securities Convertible Preferred Stock, Income | 127 | 127 | 255 | 255 |
Diluted EPS, Income | $ 2,358 | $ 2,176 | $ 4,448 | $ 4,047 |
Diluted EPS, Shares | 3,286,459 | 3,294,365 | 3,285,867 | 3,293,510 |
Effect of Dilutive Securities Convertible Preferred Stock, Shares | 444,400 | 444,400 | ||
Diluted EPS, Shares | 3,730,859 | 3,738,765 | 3,730,267 | 3,737,910 |
Basic EPS, Per Shares | $ 0.68 | $ 0.62 | $ 1.28 | $ 1.15 |
Effect of Dilutive Securities Convertible Preferred Stock, Per Shares | (0.09) | (0.07) | ||
Diluted EPS, Per Shares | $ 0.63 | $ 0.58 | $ 1.19 | $ 1.08 |
2. Investment Securities (Detai
2. Investment Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Securities available for sale | ||
Cost | $ 10,896 | $ 13,042 |
Unrealized Gains | 50 | 16 |
Unrealized Losses | 8 | 11 |
Market Value | 10,938 | 13,047 |
Securities held to maturity | ||
Cost | 125 | 125 |
Market Value | 125 | 125 |
U. S. Treasuries [Member] | ||
Securities available for sale | ||
Cost | 4,011 | 4,015 |
Unrealized Gains | 23 | 6 |
Unrealized Losses | ||
Market Value | 4,034 | 4,021 |
Government sponsored Enterprises [Member] | ||
Securities available for sale | ||
Cost | 6,023 | 8,081 |
Unrealized Gains | 10 | 4 |
Unrealized Losses | 8 | 11 |
Market Value | 6,025 | 8,074 |
Mortgage-backed securities [Member] | ||
Securities available for sale | ||
Cost | 727 | 811 |
Unrealized Gains | 17 | 6 |
Unrealized Losses | ||
Market Value | 744 | 817 |
Marketable Equities [Member] | ||
Securities available for sale | ||
Cost | 135 | 135 |
Unrealized Gains | ||
Unrealized Losses | ||
Market Value | 135 | 135 |
U. S. Treasury and agency obligations [Member] | ||
Securities held to maturity | ||
Cost | 125 | 125 |
Market Value | $ 125 | $ 125 |
2. Investment Securities (Det29
2. Investment Securities (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Total, Amortized Cost | $ 125 | $ 125 |
Total, Fair Value | 125 | $ 125 |
Securities Held to Maturity [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 | |
Securities Available for Sale [Member] | ||
Due in one year or less, Amortized Cost | 4,011 | |
Due after one year through five years, Amortized Cost | 6,023 | |
Due after five years, Amortized Cost | 862 | |
Total, Amortized Cost | 10,896 | |
Due in one year or less, Fair Value | 4,019 | |
Due after one year through five years, Fair Value | 6,040 | |
Due after five years, Fair Value | 879 | |
Total, Fair Value | $ 10,938 |
2. Investment securities (Det30
2. Investment securities (Details 2) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value Less than 12 Months | $ 6,000 | $ 6,056 |
Unrealized Losses Less than 12 Months | (8) | (11) |
Fair Value More than 12 Months | ||
Unrealized Losses More than 12 Months | ||
Fair Value Total | 6,000 | 6,056 |
Unrealized Losses Total | (8) | (11) |
Government sponsored Enterprises [Member] | ||
Fair Value Less than 12 Months | 6,000 | 6,056 |
Unrealized Losses Less than 12 Months | (8) | (11) |
Fair Value More than 12 Months | ||
Unrealized Losses More than 12 Months | ||
Fair Value Total | 6,000 | 6,056 |
Unrealized Losses Total | $ (8) | $ (11) |
3. Loans Held for Investment (D
3. Loans Held for Investment (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Loans outstanding | $ 565,999 | $ 544,053 |
Construction/Land Development [Member] | ||
Loans outstanding | 76,017 | 69,759 |
Farmland [Member] | ||
Loans outstanding | 12,867 | 13,378 |
Real Estate [Member] | ||
Loans outstanding | 169,140 | 166,587 |
Multi-Family [Member] | ||
Loans outstanding | 6,607 | 7,559 |
Commercial [Member] | ||
Loans outstanding | 134,172 | 128,032 |
Home Equity - Closed End [Member] | ||
Loans outstanding | 11,093 | 9,135 |
Home Equity [Member] | ||
Loans outstanding | 56,359 | 56,599 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Loans outstanding | 29,186 | 27,954 |
Consumer [Member] | ||
Loans outstanding | 7,945 | 8,219 |
Dealer Finance [Member] | ||
Loans outstanding | 59,947 | 54,086 |
Credit Cards [Member] | ||
Loans outstanding | $ 2,666 | $ 2,745 |
3. Loans Held for Investment 32
3. Loans Held for Investment (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Impaired loans without a valuation allowance | ||
Recorded Investment | $ 3,655 | $ 4,127 |
Unpaid Principal Balance | 3,655 | 4,265 |
Impaired loans with a valuation allowance | ||
Recorded Investment | 13,722 | 14,230 |
Unpaid Principal Balance | 13,722 | 14,230 |
Related Allowance | 2,702 | 2,915 |
Total impaired loans | ||
Recorded Investment | 17,377 | 18,357 |
Unpaid Principal Balance | 17,377 | 18,495 |
Related Allowance | 2,702 | 2,915 |
Construction/Land Development [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 1,091 | 1,361 |
Unpaid Principal Balance | 1,091 | 1,499 |
Related Allowance | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | 10,022 | 11,534 |
Unpaid Principal Balance | 10,022 | 11,534 |
Related Allowance | 1,775 | 2,373 |
Farmland [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Real Estate [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 782 | 1,097 |
Unpaid Principal Balance | 782 | 1,097 |
Related Allowance | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | 1,218 | 324 |
Unpaid Principal Balance | 1,218 | 324 |
Related Allowance | 227 | 238 |
Multi-Family [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Commercial [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 307 | |
Unpaid Principal Balance | 307 | |
Related Allowance | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | 961 | 890 |
Unpaid Principal Balance | 961 | 890 |
Related Allowance | 63 | 18 |
Home Equity - Closed End [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Home Equity [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 1,582 | 1,159 |
Unpaid Principal Balance | 1,582 | 1,159 |
Related Allowance | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | 1,408 | 1,414 |
Unpaid Principal Balance | 1,408 | 1,414 |
Related Allowance | 587 | 269 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 175 | 181 |
Unpaid Principal Balance | 175 | 181 |
Related Allowance | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | 27 | |
Unpaid Principal Balance | 27 | |
Related Allowance | 27 | |
Consumer [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 18 | |
Unpaid Principal Balance | 18 | |
Related Allowance | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Credit Cards [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Dealer Finance [Member] | ||
Impaired loans without a valuation allowance | ||
Recorded Investment | 25 | 4 |
Unpaid Principal Balance | 25 | 4 |
Related Allowance | ||
Impaired loans with a valuation allowance | ||
Recorded Investment | 86 | 68 |
Unpaid Principal Balance | 86 | 68 |
Related Allowance | $ 23 | $ 17 |
3. Loans Held for Investment 33
3. Loans Held for Investment (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | $ 3,935 | $ 7,501 | $ 5,244 | $ 7,641 |
Interest Income Recognized | 6 | 126 | 82 | 236 |
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | 14,039 | 14,636 | 14,460 | 14,969 |
Interest Income Recognized | 82 | 116 | 177 | 214 |
Total impaired loans | ||||
Average Recorded Investment | 17,974 | 22,137 | 19,704 | 22,610 |
Interest Income Recognized | 88 | 242 | 259 | 450 |
Construction/Land Development [Member] | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | 1,164 | 3,883 | 2,135 | 4,678 |
Interest Income Recognized | (7) | 43 | 17 | 92 |
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | 10,337 | 12,940 | 11,478 | 13,142 |
Interest Income Recognized | 47 | 174 | 100 | 191 |
Farmland [Member] | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Real Estate [Member] | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | 784 | 690 | 991 | 342 |
Interest Income Recognized | 9 | 32 | 20 | 36 |
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | 1,221 | 746 | 818 | 850 |
Interest Income Recognized | 10 | 17 | 26 | 18 |
Multi-Family [Member] | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Commercial [Member] | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | 203 | 1,142 | 434 | 1,445 |
Interest Income Recognized | 17 | 2 | 30 | |
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | 965 | 888 | 919 | 952 |
Interest Income Recognized | 14 | 2 | 28 | 2 |
Home Equity - Closed End [Member] | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Home Equity [Member] | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | 1,582 | 1,598 | 1,486 | 969 |
Interest Income Recognized | 30 | 35 | 72 | |
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | 1,407 | 1,175 | ||
Interest Income Recognized | 9 | 19 | ||
Commercial & Industrial - Non-Real Estate [Member] | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | 177 | 188 | 181 | 207 |
Interest Income Recognized | 3 | 4 | 6 | 6 |
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | 27 | 11 | ||
Interest Income Recognized | 1 | 1 | ||
Consumer and credit card [Member] | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | 9 | 11 | ||
Interest Income Recognized | ||||
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | ||||
Interest Income Recognized | ||||
Dealer Finance [Member] | ||||
Impaired loans without a valuation allowance | ||||
Average Recorded Investment | 16 | 6 | ||
Interest Income Recognized | 1 | 2 | ||
Impaired loans with a valuation allowance | ||||
Average Recorded Investment | 82 | 62 | 59 | 25 |
Interest Income Recognized | $ 1 | $ 1 | $ 3 | $ 3 |
4. Allowance for Loan Losses (D
4. Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Beginning Balance | $ 8,781 | $ 8,725 |
Charge-offs | 1,007 | 601 |
Recoveries | 294 | 357 |
Provision | 300 | |
Ending Balance | 8,068 | 8,781 |
Individually Evaluated for Impairment | 2,702 | 2,915 |
Collectively Evaluated for Impairment | 5,366 | 5,866 |
Construction/Land Development [Member] | ||
Beginning Balance | 4,442 | 4,738 |
Charge-offs | 294 | 156 |
Recoveries | 1 | 85 |
Provision | (767) | (225) |
Ending Balance | 3,382 | 4,442 |
Individually Evaluated for Impairment | 1,775 | 2,373 |
Collectively Evaluated for Impairment | 1,607 | 2,069 |
Farmland [Member] | ||
Beginning Balance | 95 | |
Charge-offs | ||
Recoveries | ||
Provision | (57) | 95 |
Ending Balance | 38 | 95 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | 38 | 95 |
Real Estate [Member] | ||
Beginning Balance | 806 | 623 |
Charge-offs | 23 | 25 |
Recoveries | 4 | 37 |
Provision | 244 | 171 |
Ending Balance | 1,031 | 806 |
Individually Evaluated for Impairment | 227 | 238 |
Collectively Evaluated for Impairment | 804 | 568 |
Multi-Family [Member] | ||
Beginning Balance | 71 | |
Charge-offs | ||
Recoveries | ||
Provision | (47) | 71 |
Ending Balance | 24 | 71 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | 24 | 71 |
Commercial [Member] | ||
Beginning Balance | 445 | 126 |
Charge-offs | 18 | |
Recoveries | 87 | 65 |
Provision | 190 | 254 |
Ending Balance | 704 | 445 |
Individually Evaluated for Impairment | 63 | 18 |
Collectively Evaluated for Impairment | 641 | 427 |
Home Equity - Closed End [Member] | ||
Beginning Balance | 174 | 188 |
Charge-offs | 1 | 26 |
Recoveries | 6 | |
Provision | (6) | 6 |
Ending Balance | 167 | 174 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | 167 | 174 |
Home Equity [Member] | ||
Beginning Balance | 634 | 154 |
Charge-offs | 2 | 51 |
Recoveries | 106 | |
Provision | 225 | 531 |
Ending Balance | 963 | 634 |
Individually Evaluated for Impairment | 587 | 269 |
Collectively Evaluated for Impairment | 376 | 365 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Beginning Balance | 1,055 | 1,211 |
Charge-offs | 246 | |
Recoveries | 3 | 62 |
Provision | (19) | (218) |
Ending Balance | 793 | 1,055 |
Individually Evaluated for Impairment | 27 | |
Collectively Evaluated for Impairment | 766 | 1,055 |
Consumer [Member] | ||
Beginning Balance | 108 | 214 |
Charge-offs | 6 | 32 |
Recoveries | 12 | 32 |
Provision | 16 | (106) |
Ending Balance | 130 | 108 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | 130 | 108 |
Dealer Finance [Member] | ||
Beginning Balance | 836 | 1,336 |
Charge-offs | 385 | 251 |
Recoveries | 57 | 24 |
Provision | 256 | (273) |
Ending Balance | 764 | 836 |
Individually Evaluated for Impairment | 23 | 17 |
Collectively Evaluated for Impairment | 741 | 819 |
Credit Cards [Member] | ||
Beginning Balance | 115 | 135 |
Charge-offs | 32 | 60 |
Recoveries | 24 | 46 |
Provision | (35) | (6) |
Ending Balance | 72 | 115 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 72 | $ 115 |
4. Allowance for Loan Losses 35
4. Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Loan Receivable | $ 565,999 | $ 544,053 |
Individually Evaluated for Impairment | 17,377 | 18,357 |
Collectively Evaluated for Impairment | 548,622 | 525,696 |
Construction/Land Development [Member] | ||
Loan Receivable | 76,017 | 69,759 |
Individually Evaluated for Impairment | 11,113 | 12,895 |
Collectively Evaluated for Impairment | 64,904 | 56,864 |
Farmland [Member] | ||
Loan Receivable | 12,867 | 13,378 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | 12,867 | 13,378 |
Real Estate [Member] | ||
Loan Receivable | 169,140 | 166,587 |
Individually Evaluated for Impairment | 2,000 | 1,421 |
Collectively Evaluated for Impairment | 167,140 | 165,167 |
Multi-Family [Member] | ||
Loan Receivable | 6,607 | 7,559 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | 6,607 | 7,559 |
Commercial [Member] | ||
Loan Receivable | 134,172 | 128,032 |
Individually Evaluated for Impairment | 961 | 1,197 |
Collectively Evaluated for Impairment | 133,211 | 126,835 |
Home Equity - Closed End [Member] | ||
Loan Receivable | 11,093 | 9,135 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | 11,093 | 9,135 |
Home Equity [Member] | ||
Loan Receivable | 56,359 | 56,599 |
Individually Evaluated for Impairment | 2,990 | 2,573 |
Collectively Evaluated for Impairment | 53,369 | 54,026 |
Commercial & Industrial - Non-Real Estate [Member] | ||
Loan Receivable | 29,186 | 27,954 |
Individually Evaluated for Impairment | 202 | 181 |
Collectively Evaluated for Impairment | 28,984 | 27,773 |
Consumer [Member] | ||
Loan Receivable | 7,945 | 8,219 |
Individually Evaluated for Impairment | 18 | |
Collectively Evaluated for Impairment | 7,945 | 8,201 |
Dealer Finance [Member] | ||
Loan Receivable | 59,947 | 54,086 |
Individually Evaluated for Impairment | 111 | 72 |
Collectively Evaluated for Impairment | 59,836 | 54,013 |
Credit Cards [Member] | ||
Loan Receivable | 2,666 | 2,745 |
Individually Evaluated for Impairment | ||
Collectively Evaluated for Impairment | $ 2,666 | $ 2,745 |
4. Allowance for Loan Losses 36
4. Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
30-59 Days Past due | $ 3,581 | $ 5,236 |
60-89 Days Past due | 2,460 | 1,835 |
Greater than 90 Days (excluding non-accrual) | 132 | 571 |
Non-Accrual Loans | 5,413 | 5,955 |
Total past due | 11,586 | 13,597 |
Current | 554,413 | 530,456 |
Total Loan Receivable | 565,999 | 544,053 |
Construction/Land Development [Member] | ||
30-59 Days Past due | 50 | 104 |
60-89 Days Past due | ||
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | 4,356 | 4,688 |
Total past due | 4,406 | 4,792 |
Current | 71,611 | 64,967 |
Total Loan Receivable | 76,017 | 69,759 |
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 | 12,867 | 13,378 |
Total Loan Receivable | 12,867 | 13,378 |
Real Estate [Member] | ||
30-59 Days Past due | 1,815 | 2,684 |
60-89 Days Past due | 722 | 1,332 |
Greater than 90 Days (excluding non-accrual) | 272 | |
Non-Accrual Loans | 636 | 1,010 |
Total past due | 3,173 | 5,298 |
Current | 165,967 | 161,289 |
Total Loan Receivable | 169,140 | 166,587 |
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 | 6,607 | 7,559 |
Total Loan Receivable | 6,607 | 7,559 |
Commercial [Member] | ||
30-59 Days Past due | 168 | 340 |
60-89 Days Past due | 241 | |
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | ||
Total past due | 168 | 581 |
Current | 134,004 | 127,451 |
Total Loan Receivable | 134,172 | 128,032 |
Home Equity - Closed End [Member] | ||
30-59 Days Past due | 10 | 41 |
60-89 Days Past due | 7 | |
Greater than 90 Days (excluding non-accrual) | ||
Non-Accrual Loans | 3 | |
Total past due | 13 | 48 |
Current | 11,080 | 9,087 |
Total Loan Receivable | 11,093 | 9,135 |
Home Equity [Member] | ||
30-59 Days Past due | 635 | 918 |
60-89 Days Past due | 1,508 | 46 |
Greater than 90 Days (excluding non-accrual) | 107 | |
Non-Accrual Loans | 237 | 40 |
Total past due | 2,380 | 1,111 |
Current | 53,979 | 55,488 |
Total Loan Receivable | 56,359 | 56,599 |
Commercial & Industrial - Non-Real Estate [Member] | ||
30-59 Days Past due | 131 | 114 |
60-89 Days Past due | 6 | 3 |
Greater than 90 Days (excluding non-accrual) | 25 | |
Non-Accrual Loans | 81 | 109 |
Total past due | 218 | 251 |
Current | 28,968 | 27,703 |
Total Loan Receivable | 29,186 | 27,954 |
Consumer [Member] | ||
30-59 Days Past due | 73 | 120 |
60-89 Days Past due | 12 | 10 |
Greater than 90 Days (excluding non-accrual) | 1 | |
Non-Accrual Loans | ||
Total past due | 86 | 130 |
Current | 7,859 | 8,089 |
Total Loan Receivable | 7,945 | 8,219 |
Dealer Finance [Member] | ||
30-59 Days Past due | 687 | 905 |
60-89 Days Past due | 205 | 183 |
Greater than 90 Days (excluding non-accrual) | 131 | 152 |
Non-Accrual Loans | 100 | 108 |
Total past due | 1,123 | 1,348 |
Current | 58,824 | 52,738 |
Total Loan Receivable | 59,947 | 54,086 |
Credit Cards [Member] | ||
30-59 Days Past due | 12 | 10 |
60-89 Days Past due | 7 | 13 |
Greater than 90 Days (excluding non-accrual) | 15 | |
Non-Accrual Loans | ||
Total past due | 19 | 38 |
Current | 2,647 | 2,707 |
Total Loan Receivable | $ 2,666 | $ 2,745 |
4. Allowance for Loan Losses 37
4. Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Construction/Land Development | $ 76,017 | $ 69,759 |
Farmland | 12,867 | 13,378 |
Real Estate | 169,140 | 166,587 |
Multi-Family | 6,607 | 7,559 |
Commercial Real Estate | 134,172 | 128,032 |
Home Equity - closed end | 11,093 | 9,135 |
Home Equity - open end | 56,359 | 56,599 |
Commercial & Industrial (Non-Real Estate) | 29,186 | 27,954 |
Total | 495,441 | 479,003 |
Grade 1 Minimal Risk [Member] | ||
Construction/Land Development | ||
Farmland | 65 | 66 |
Real Estate | ||
Multi-Family | ||
Commercial Real Estate | ||
Home Equity - closed end | ||
Home Equity - open end | 80 | |
Commercial & Industrial (Non-Real Estate) | 1,228 | 896 |
Total | 1,373 | 962 |
Grade 2 Modest Risk [Member] | ||
Construction/Land Development | 654 | 485 |
Farmland | ||
Real Estate | 1,095 | 955 |
Multi-Family | 352 | 391 |
Commercial Real Estate | 1,911 | 2,087 |
Home Equity - closed end | ||
Home Equity - open end | 1,069 | 1,657 |
Commercial & Industrial (Non-Real Estate) | 395 | 646 |
Total | 5,476 | 6,221 |
Grade 3 Average Risk [Member] | ||
Construction/Land Development | 11,682 | 8,410 |
Farmland | 3,011 | 2,615 |
Real Estate | 52,194 | 54,400 |
Multi-Family | 3,082 | 3,925 |
Commercial Real Estate | 26,049 | 25,889 |
Home Equity - closed end | 3,502 | 3,549 |
Home Equity - open end | 15,399 | 15,043 |
Commercial & Industrial (Non-Real Estate) | 7,141 | 6,423 |
Total | 122,060 | 120,254 |
Grade 4 Acceptable Risk [Member] | ||
Construction/Land Development | 39,344 | 31,783 |
Farmland | 3,355 | 3,768 |
Real Estate | 81,585 | 76,545 |
Multi-Family | 2,982 | 3,046 |
Commercial Real Estate | 76,480 | 74,337 |
Home Equity - closed end | 4,119 | 3,792 |
Home Equity - open end | 33,048 | 31,455 |
Commercial & Industrial (Non-Real Estate) | 17,738 | 17,053 |
Total | 258,651 | 241,779 |
Grade 5 Marginally Acceptable [Member] | ||
Construction/Land Development | 11,622 | 14,260 |
Farmland | 3,992 | 4,952 |
Real Estate | 25,855 | 23,695 |
Multi-Family | 191 | 197 |
Commercial Real Estate | 23,451 | 20,271 |
Home Equity - closed end | 2,026 | 1,661 |
Home Equity - open end | 4,404 | 4,827 |
Commercial & Industrial (Non-Real Estate) | 2,518 | 2,281 |
Total | 74,059 | 72,144 |
Grade 6 Watch [Member] | ||
Construction/Land Development | 1,913 | 3,216 |
Farmland | 2,444 | 1,977 |
Real Estate | 6,426 | 8,334 |
Multi-Family | ||
Commercial Real Estate | 3,490 | 4,149 |
Home Equity - closed end | 1,443 | 114 |
Home Equity - open end | 458 | 398 |
Commercial & Industrial (Non-Real Estate) | 63 | 517 |
Total | 16,237 | 18,705 |
Grade 7 Substandard [Member] | ||
Construction/Land Development | 10,802 | 11,605 |
Farmland | ||
Real Estate | 1,985 | 2,658 |
Multi-Family | ||
Commercial Real Estate | 2,791 | 1,299 |
Home Equity - closed end | 3 | 19 |
Home Equity - open end | 1,901 | 3,219 |
Commercial & Industrial (Non-Real Estate) | 103 | 138 |
Total | 17,585 | 18,938 |
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 38
4. Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Credit cards | $ 2,666 | $ 2,745 |
Consumer | 67,892 | 62,305 |
Performing [Member] | ||
Credit cards | 2,666 | 2,730 |
Consumer | 67,660 | 62,046 |
Non performing [Member] | ||
Credit cards | 15 | |
Consumer | $ 232 | $ 259 |
5. Employee Benefit Plan (Detai
5. Employee Benefit Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Benefit Plan Details | ||||
Service cost | $ 157,968 | $ 162,084 | $ 315,936 | $ 324,167 |
Interest cost | 113,224 | 102,736 | 226,448 | 205,472 |
Expected return on plan assets | (213,604) | (209,705) | (427,208) | (419,409) |
Amortization of net obligation at transition | ||||
Amortization of prior service cost | (3,809) | (3,809) | (7,618) | (7,618) |
Amortization of net (gain) or loss | 55,786 | 45,161 | 111,572 | 90,321 |
Net periodic pension cost | $ 109,565 | $ 96,467 | $ 219,130 | $ 192,933 |
6. Fair Value (Details)
6. Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Impaired Loans | $ 11,020 | $ 11,315 |
Other Real Estate Owned | 2,499 | 2,128 |
Fair Value Inputs Level 3 [Member] | ||
Impaired Loans | 11,020 | 11,315 |
Other Real Estate Owned | $ 2,499 | $ 2,128 |
Valuation Technique Impaired Loans | Discounted appraised value | Discounted appraised value |
Valuation Technique Other Real Estate Owned | Discounted appraised value | Discounted appraised value |
Significant Unobservable Inputs Impaired Loans | Discount for selling costs and age of appraisals | Discount for selling costs and age of appraisals |
Significant Unobservable Inputs Other Real Estate Owned | Discount for selling costs and age of appraisals | Discount for selling costs and age of appraisals |
Fair Value Inputs Level 3 [Member] | Minimum [Member] | ||
Range Impaired Loans | 15.00% | 15.00% |
Range Other Real Estate Owned | 15.00% | 15.00% |
Fair Value Inputs Level 3 [Member] | Maximum [Member] | ||
Range Impaired Loans | 55.00% | 55.00% |
Range Other Real Estate Owned | 55.00% | 55.00% |
6. Fair Value (Details 1)
6. Fair Value (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Total assets at fair value | $ 10,938 | $ 13,047 |
Total liabilities at fair value | ||
Derivative financial instruments at fair value | 15 | 15 |
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 | 10,938 | 13,047 |
Total liabilities at fair value | ||
Derivative financial instruments at fair value | 15 | 15 |
Fair Value Inputs Level 3 [Member] | ||
Total assets at fair value | ||
Total liabilities at fair value | ||
Derivative financial instruments at fair value | ||
U. S. Treasuries [Member] | ||
Total assets at fair value | 4,034 | 4,021 |
U. S. Treasuries [Member] | Fair Value Inputs Level 1 [Member] | ||
Total assets at fair value | ||
U. S. Treasuries [Member] | Fair Value Inputs Level 2 [Member] | ||
Total assets at fair value | 4,034 | 4,021 |
U. S. Treasuries [Member] | Fair Value Inputs Level 3 [Member] | ||
Total assets at fair value | ||
Government sponsored enterprises [Member] | ||
Total assets at fair value | 6,025 | 8,074 |
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 | 6,025 | 8,074 |
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 | 744 | 817 |
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 | 744 | 817 |
Mortgage-backed obligations of federal agencies [Member] | Fair Value Inputs Level 3 [Member] | ||
Total assets at fair value | ||
Marketable Equities [Member] | ||
Total assets at fair value | 135 | 135 |
Marketable Equities [Member] | Fair Value Inputs Level 1 [Member] | ||
Total assets at fair value | ||
Marketable Equities [Member] | Fair Value Inputs Level 2 [Member] | ||
Total assets at fair value | 135 | 135 |
Marketable Equities [Member] | Fair Value Inputs Level 3 [Member] | ||
Total assets at fair value | ||
Securities Available for Sale [Member] | ||
Total assets at fair value | 10,938 | 13,047 |
Securities Available for Sale [Member] | Fair Value Inputs Level 1 [Member] | ||
Total assets at fair value | ||
Securities Available for Sale [Member] | Fair Value Inputs Level 2 [Member] | ||
Total assets at fair value | 10,938 | 13,047 |
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 | Jun. 30, 2016 | Dec. 31, 2015 |
Other Real Estate Owned | $ 2,499 | $ 2,128 |
Impaired loans | 11,020 | 11,315 |
Loans held for sale | 97,211 | 57,806 |
Total assets at fair value | 110,730 | 71,249 |
Total liabilities at fair value | ||
Fair Value Inputs Level 1 [Member] | ||
Other Real Estate Owned | ||
Impaired loans | ||
Loans held for sale | ||
Total assets at fair value | ||
Total liabilities at fair value | ||
Fair Value Inputs Level 2 [Member] | ||
Other Real Estate Owned | ||
Impaired loans | ||
Loans held for sale | 97,211 | 57,806 |
Total assets at fair value | 97,211 | 57,806 |
Total liabilities at fair value | ||
Fair Value Inputs Level 3 [Member] | ||
Other Real Estate Owned | 2,499 | 2,128 |
Impaired loans | 11,020 | 11,315 |
Loans held for sale | ||
Total assets at fair value | 13,519 | 13,443 |
Total liabilities at fair value | ||
Construction/Land Development [Member] | ||
Impaired loans | 8,247 | 9,161 |
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 | 8,247 | 9,161 |
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 | 991 | 85 |
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 | 991 | 85 |
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 | 898 | 872 |
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 | 898 | 872 |
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 | 821 | 1,145 |
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 | 821 | 1,145 |
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 | 63 | 52 |
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 | $ 63 | $ 52 |
7. Disclosures About Fair Val43
7. Disclosures About Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financial Assets | ||
Cash and cash equivalents, Estimated Fair Value | $ 8,591 | $ 8,519 |
Cash and cash equivalents, Carrying Value | 8,591 | 8,519 |
Loans, Estimated Fair Value | 576,242 | 555,762 |
Loans, Carrying value | 565,999 | 544,053 |
Loans held for sale, Estimated Fair Value | 97,211 | 57,806 |
Loans held for sale, Carrying value | 97,211 | 57,806 |
Interest receivable, Estimated Fair Value | 1,851 | 1,709 |
Interest receivable, Carrying value | 1,851 | 1,709 |
Investments, Estimated Fair Value | 24,951 | 25,329 |
Investments, Carrying value | 24,909 | 25,324 |
Financial Liabilities | ||
Time deposits, Estimated Fair Value | 161,270 | 162,524 |
Time deposits, Carrying Value | 159,914 | 161,040 |
Short-term debt, Estimated Fair Value | 59,418 | 24,954 |
Short-term debt, Carrying value | 59,418 | 24,954 |
Long-term debt, Estimated Fair Value | 66,891 | 48,565 |
Long-term debt, Carrying Value | $ 66,196 | $ 48,161 |
8. Troubled Debt Restructurin44
8. Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016USD ($)Integer | Jun. 30, 2015USD ($)Integer | Jun. 30, 2016USD ($)Integer | Jun. 30, 2015USD ($)Integer | |
Number of Contracts | Integer | 5 | 5 | 6 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 189 | $ 2,730 | $ 206 | $ 2,767 |
Post-Modification Outstanding Recorded Investment | $ 189 | $ 2,730 | $ 206 | $ 2,767 |
Number of Contracts, Non Accrual | Integer | 6 | |||
Pre-Modification Outstanding Recorded Investment, Non Accrual | $ 1,544 | |||
Post-Modification Outstanding Recorded Investment, Non Accrual | $ 1,544 | |||
Consumer [Member] | ||||
Number of Contracts | Integer | 2 | 1 | 3 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 19 | $ 6 | $ 36 | $ 43 |
Post-Modification Outstanding Recorded Investment | $ 19 | $ 6 | $ 36 | $ 43 |
Number of Contracts, Non Accrual | Integer | 1 | |||
Pre-Modification Outstanding Recorded Investment, Non Accrual | $ 16 | |||
Post-Modification Outstanding Recorded Investment, Non Accrual | $ 16 | |||
Commercial [Member] | ||||
Number of Contracts | Integer | 1 | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 27 | $ 27 | ||
Post-Modification Outstanding Recorded Investment | $ 27 | $ 27 | ||
Real Estate [Member] | ||||
Number of Contracts | Integer | 2 | 4 | 2 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 143 | $ 2,724 | $ 143 | $ 2,724 |
Post-Modification Outstanding Recorded Investment | $ 143 | $ 2,724 | $ 143 | $ 2,724 |
Number of Contracts, Non Accrual | Integer | 5 | |||
Pre-Modification Outstanding Recorded Investment, Non Accrual | $ 1,528 | |||
Post-Modification Outstanding Recorded Investment, Non Accrual | $ 1,528 |
8. Troubled Debt Restructurin45
8. Troubled Debt Restructuring (Details Narrative) $ in Thousands | Jun. 30, 2016USD ($) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Asset Types | |
Real estate loan | $ 95 |