Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 04, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | QNB CORP | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 3,322,985 | ||
Entity Public Float | $78,360,328 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 750558 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||
Cash and due from banks | $11,102,000 | $12,717,000 |
Interest-bearing deposits in banks | 7,143,000 | 3,569,000 |
Total cash and cash equivalents | 18,245,000 | 16,286,000 |
Investment securities | ||
Trading | 4,207,000 | 0 |
Available-for-sale (amortized cost $373,844 and $393,840) | 375,219,000 | 388,670,000 |
Held-to-maturity (fair value $156 and $162) | 146,000 | 146,000 |
Restricted investment in bank stocks | 647,000 | 1,764,000 |
Loans held-for-sale | 380,000 | |
Loans receivable | 555,282,000 | 501,716,000 |
Allowance for loan losses | -8,001,000 | -8,925,000 |
Net loans | 547,281,000 | 492,791,000 |
Bank-owned life insurance | 10,658,000 | 10,407,000 |
Premises and equipment, net | 9,702,000 | 9,875,000 |
Accrued interest receivable | 2,568,000 | 2,579,000 |
Other assets | 8,082,000 | 10,365,000 |
Total assets | 977,135,000 | 932,883,000 |
Deposits | ||
Demand, non-interest bearing | 86,920,000 | 75,987,000 |
Interest-bearing demand | 251,986,000 | 236,910,000 |
Money market | 58,199,000 | 54,861,000 |
Savings | 211,240,000 | 207,229,000 |
Time | 148,827,000 | 153,803,000 |
Time of $100,000 or more | 94,420,000 | 85,742,000 |
Total deposits | 851,592,000 | 814,532,000 |
Short-term borrowings | 35,189,000 | 35,156,000 |
Long-term debt | 5,000,000 | |
Accrued interest payable | 344,000 | 392,000 |
Other liabilities | 3,656,000 | 2,178,000 |
Total liabilities | 890,781,000 | 857,258,000 |
Shareholders' Equity | ||
Common stock, par value $0.625 per share; authorized 10,000,000 shares; 3,481,227 shares and 3,436,227 shares issued; 3,316,658 and 3,271,658 shares outstanding | 2,176,000 | 2,148,000 |
Surplus | 14,819,000 | 13,747,000 |
Retained earnings | 70,928,000 | 65,618,000 |
Accumulated other comprehensive income (loss), net of tax | 907,000 | -3,412,000 |
Treasury stock, at cost; 164,569 shares | -2,476,000 | -2,476,000 |
Total shareholders' equity | 86,354,000 | 75,625,000 |
Total liabilities and shareholders' equity | $977,135,000 | $932,883,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Available-for-sale, amortized cost (in Dollars) | $373,844 | $393,840 |
Held-to-maturity, fair value (in Dollars) | $156 | $162 |
Common stock, par value (in Dollars per share) | $0.63 | $0.63 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 3,481,227 | 3,436,227 |
Common stock, shares outstanding | 3,316,658 | 3,271,658 |
Treasury stock, shares | 164,569 | 164,569 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest Income | ||
Interest and fees on loans | $22,759 | $22,245 |
Interest and dividends on investment securities: | ||
Taxable | 5,406 | 5,611 |
Tax-exempt | 2,223 | 2,682 |
Interest on trading securities | 158 | |
Interest on interest-bearing balances and other interest income | 124 | 46 |
Total interest income | 30,670 | 30,584 |
Interest on deposits | ||
Interest-bearing demand | 673 | 649 |
Money market | 126 | 133 |
Savings | 770 | 820 |
Time | 1,636 | 1,882 |
Time of $100,000 or more | 1,155 | 1,189 |
Interest on short-term borrowings | 114 | 111 |
Interest on long-term debt | 70 | 249 |
Total interest expense | 4,544 | 5,033 |
Net interest income | 26,126 | 25,551 |
Provision for loan losses | 400 | 400 |
Net interest income after provision for loan losses | 25,726 | 25,151 |
Non-Interest Income | ||
Other-than temporary impairment losses on investment securities | -43 | |
Net gain on sale of investment securities | 1,112 | 867 |
Net gain on investment securities | 1,112 | 824 |
Net gain on trading activities | 156 | |
Fees for services to customers | 1,687 | 1,594 |
ATM and debit card | 1,485 | 1,499 |
Retail brokerage and advisory | 657 | 523 |
Bank-owned life insurance | 472 | 320 |
Merchant | 299 | 367 |
Net gain on sale of loans | 258 | 425 |
Gain on sale of internet domain name | 1,000 | |
Other | 416 | 261 |
Total non-interest income | 7,542 | 5,813 |
Non-Interest Expense | ||
Salaries and employee benefits | 11,649 | 10,553 |
Net occupancy | 1,705 | 1,638 |
Furniture and equipment | 1,753 | 1,714 |
Marketing | 841 | 971 |
Third party services | 1,677 | 1,488 |
Telephone, postage and supplies | 730 | 670 |
State taxes | 617 | 690 |
FDIC insurance premiums | 686 | 705 |
Other | 1,968 | 1,797 |
Total non-interest expense | 21,626 | 20,226 |
Income before income taxes | 11,642 | 10,738 |
Provision for income taxes | 2,644 | 2,346 |
Net Income | $8,998 | $8,392 |
Earnings Per Share - Basic (in Dollars per share) | $2.73 | $2.58 |
Earnings Per Share - Diluted (in Dollars per share) | $2.72 | $2.57 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Net income | $11,642 | $10,738 |
Net unrealized holding gains (losses) on securities: | ||
Unrealized holding gains (losses) arising during the period | 7,657 | -11,098 |
Reclassification adjustment for gains included in net income | -1,112 | -824 |
Other comprehensive income (loss) | 6,545 | -11,922 |
Total comprehensive income (loss) | $18,187 | ($1,184) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Tax expense (benefit) | $2,644 | $2,346 |
Net income | 8,998 | 8,392 |
Unrealized holding gains (losses) arising during the period, tax expense | 2,604 | -3,774 |
Unrealized holding gains (losses) arising during the period, net of tax amount | 5,053 | -7,324 |
Reclassification adjustment for (gains) losses included in net income, tax expense (benefit) | -378 | -280 |
Reclassification adjustment for (gains) losses included in net income, net of tax amount | -734 | -544 |
Other comprehensive (loss) income, tax expense (benefit) | 2,226 | -4,054 |
Other comprehensive (loss) income, net of tax amount | 4,319 | -7,868 |
Total comprehensive income, tax expense (benefit) | 4,870 | -1,708 |
Total comprehensive income, net of tax amount | $13,317 | $524 |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
In Thousands, except Share data | ||||||
Balance at Dec. 31, 2012 | $2,121 | $12,787 | $60,735 | $4,456 | ($2,476) | $77,623 |
Balance (in Shares) at Dec. 31, 2012 | 3,228,003 | |||||
Net Income | 8,392 | 8,392 | ||||
Other comprehensive income (loss), net of tax | -7,868 | -7,868 | ||||
Cash dividends declared | -3,509 | -3,509 | ||||
Stock issued in connection with dividend reinvestment and stock purchase plan | 22 | 801 | 823 | |||
Stock issued in connection with dividend reinvestment and stock purchase plan (in Shares) | 35,481 | |||||
Stock issued for employee stock purchase plan | 2 | 77 | 79 | |||
Stock issued for employee stock purchase plan (in Shares) | 3,692 | |||||
Stock issued for options exercised | 3 | 9 | 12 | |||
Stock issued for options exercised (in Shares) | 4,482 | 29,825 | ||||
Tax benefit of stock options exercised | 2 | 2 | ||||
Stock-based compensation expense | 71 | 71 | ||||
Balance at Dec. 31, 2013 | 2,148 | 13,747 | 65,618 | -3,412 | -2,476 | 75,625 |
Balance (in Shares) at Dec. 31, 2013 | 3,271,658 | 3,271,658 | ||||
Net Income | 8,998 | 8,998 | ||||
Other comprehensive income (loss), net of tax | 4,319 | 4,319 | ||||
Cash dividends declared | -3,688 | -3,688 | ||||
Stock issued in connection with dividend reinvestment and stock purchase plan | 18 | 731 | 749 | |||
Stock issued in connection with dividend reinvestment and stock purchase plan (in Shares) | 29,288 | |||||
Stock issued for employee stock purchase plan | 2 | 72 | 74 | |||
Stock issued for employee stock purchase plan (in Shares) | 3,239 | |||||
Stock issued for options exercised | 8 | 157 | 165 | |||
Stock issued for options exercised (in Shares) | 12,473 | 20,050 | ||||
Tax benefit of stock options exercised | 29 | 29 | ||||
Stock-based compensation expense | 83 | 83 | ||||
Balance at Dec. 31, 2014 | $2,176 | $14,819 | $70,928 | $907 | ($2,476) | $86,354 |
Balance (in Shares) at Dec. 31, 2014 | 3,316,658 | 3,316,658 |
Consolidated_Statement_of_Shar1
Consolidated Statement of Shareholders' Equity (Parentheticals) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash dividends declared, per share | $1.12 | $1.08 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Activities | ||
Net income | $8,998 | $8,392 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,167 | 1,146 |
Provision for loan losses | 400 | 400 |
Net gains on investment securities available-for-sale | -1,112 | -824 |
Net loss on sale of repossessed assets, other real estate owned and premises and equipment | 2 | 179 |
Net gain on sale of loans | -258 | -425 |
Gain on sale of internet domain name | -1,000 | |
Proceeds from sales of residential mortgages held-for-sale | 6,589 | 17,022 |
Origination of residential mortgages held-for-sale | -6,711 | -14,981 |
Income on bank-owned life insurance | -472 | -320 |
Stock-based compensation expense | 83 | 71 |
Net increase in trading securities | -4,207 | |
Deferred income tax expense | 368 | 212 |
Net (decrease) increase in income taxes payable | -65 | 35 |
Net decrease in accrued interest receivable | 11 | 224 |
Amortization of mortgage servicing rights and change in valuation allowance | 62 | 55 |
Net amortization of premiums and discounts on investment securities | 2,148 | 2,265 |
Net decrease in accrued interest payable | -48 | -95 |
(Increase) decrease in other assets | -100 | 4,140 |
Increase (decrease) in other liabilities | 122 | -173 |
Net cash provided by operating activities | 5,977 | 17,323 |
Investing Activities | ||
Proceeds from payments, maturities and calls of investment securities available-for-sale | 82,360 | 110,123 |
Proceeds from the sale of investment securities available-for-sale | 29,972 | 19,559 |
Purchases of investment securities available-for-sale | -92,017 | -130,213 |
Proceeds from redemption of investment in restricted bank stock | 3,673 | 656 |
Purchase of restricted bank stock | -2,556 | -176 |
Net increase in loans | -55,263 | -28,751 |
Net purchases of premises and equipment | -995 | -2,048 |
Proceeds from sale of internet domain name | 1,000 | |
Redemption of bank-owned life insurance | 234 | |
Proceeds from sales of repossessed assets | 152 | 1,678 |
Net cash used by investing activities | -33,440 | -29,172 |
Financing Activities | ||
Net increase in non-interest bearing deposits | 10,933 | 2,302 |
Net increase in interest-bearing deposits | 26,127 | 10,592 |
Net increase in short-term borrowings | 33 | 2,668 |
Repayments of long-term debt | -5,000 | -287 |
Tax benefit from exercise of stock options | 29 | 2 |
Cash dividends paid, net of reinvestment | -3,328 | -3,130 |
Proceeds from issuance of common stock | 628 | 535 |
Net cash provided by financing activities | 29,422 | 12,682 |
Increase in cash and cash equivalents | 1,959 | 833 |
Cash and cash equivalents at beginning of year | 16,286 | 15,453 |
Cash and cash equivalents at end of year | 18,245 | 16,286 |
Supplemental Cash Flow Disclosures | ||
Interest paid | 4,592 | 5,128 |
Income taxes paid | 2,310 | 2,095 |
Non-cash transactions | ||
Transfer of loans to repossessed assets or other real estate owned | 373 | 3,521 |
Unsettled trades to purchase securities | $1,355 |
Note_1_Summary_of_Significant_
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 - Summary of Significant Accounting Policies | ||||||||
Business | |||||||||
QNB Corp. (the “Company”), through its wholly-owned subsidiary, QNB Bank (the “Bank”), has been serving the residents and businesses of Bucks, Lehigh, and Montgomery counties in Pennsylvania since 1877. The Bank is a locally managed community bank that provides a full range of commercial, retail banking and retail brokerage services. The Bank encounters vigorous competition for market share in the communities it serves from bank holding companies, other community banks, thrift institutions, credit unions and other non-bank financial organizations such as mutual fund companies, insurance companies and brokerage companies. The Company manages its business as a single operating segment. | |||||||||
The Bank is a Pennsylvania chartered commercial bank. The Company and the Bank are subject to regulations of certain state and Federal agencies. These regulatory agencies periodically examine the Company and the Bank for adherence to laws and regulations. | |||||||||
Basis of Presentation | |||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. The consolidated entity is referred to herein as “QNB”. All significant inter-company accounts and transactions have been eliminated in the consolidated financial statements. | |||||||||
For comparative purposes, prior year’s consolidated financial statements have been reclassified to conform to the report classifications of the current year. The reclassifications had no effect on net income. | |||||||||
Tabular information, other than share and per share data, is presented in thousands of dollars. | |||||||||
Use of Estimates | |||||||||
These statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and predominant practices within the banking industry. The preparation of these consolidated financial statements requires QNB to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. QNB evaluates estimates on an on-going basis. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the determination of the valuation of other real estate owned, the fair value of financial instruments, other-than-temporary impairment of investment securities, the determination of impairment of restricted bank stock and the valuation of deferred tax assets and income taxes. QNB bases its estimates on historical experience and various other factors and assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. | |||||||||
Significant Group Concentrations of Credit Risk | |||||||||
Most of the Company’s activities are with customers located within Bucks, Montgomery and Lehigh Counties in southeastern Pennsylvania. Note 4 discusses the types of investment securities in which the Company invests. Note 5 discusses the types of lending in which the Company engages. The Company does not have any significant concentrations to any one industry or customer. Although the Company has a diversified loan portfolio, its debtors’ ability to honor their contracts is influenced by the region’s economy. | |||||||||
Cash and Cash Equivalents | |||||||||
For purposes of the statement of cash flows, cash and cash equivalents consist of cash on hand, cash items in process of collection, amounts due from banks, interest-bearing deposits in the Federal Reserve Bank and other banks and Federal funds sold. QNB maintains a portion of its interest-bearing deposits at various commercial financial institutions. At times, the balances exceed the FDIC insured limits. | |||||||||
Trading Securities | |||||||||
The Company engages in trading activities for its own account. Interest and dividends are included in interest income. Debt and equity securities that are bought and held principally for the purpose of selling in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. In 2014, QNB sold approximately $5,000,000 in available-for-sale municipal securities and established a trading account with a broker with a balance of $4,207,000 at December 31, 2014, consisting of municipal securities and a brokerage cash account of $1,160,000. QNB had no trading securities at December 31, 2013. | |||||||||
Investment Securities | |||||||||
Investment securities that QNB has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost. Interest and dividends are included in interest income. Debt and equity securities not classified as either held-to-maturity securities or trading securities are classified as available-for-sale securities and reported at fair value, with unrealized gains and losses, net of tax, excluded from earnings and reported in other comprehensive income or loss, a separate component of shareholders’ equity. Management determines the appropriate classification of securities at the time of purchase. | |||||||||
Available-for-sale securities include securities that management intends to use as part of its asset/liability management strategy and that may be sold in response to changes in credit ratings, changes in market interest rates and related changes in the securities’ prepayment risk or to meet liquidity needs. | |||||||||
Premiums and discounts on debt securities are recognized in interest income using a constant yield method. Gains and losses on sales of available-for-sale securities are recorded on the trade date and are computed on the specific identification method and included in non-interest income. | |||||||||
Other-than-Temporary Impairment of Investment Securities | |||||||||
Securities are evaluated periodically to determine whether a decline in their value is other-than-temporary. Management utilizes criteria such as the magnitude and duration of the decline, in addition to the reasons underlying the decline, to determine whether the loss in value is other-than-temporary. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support realizable value equal to or greater than carrying value of the investment. For equity securities, once a decline in value is determined to be other-than-temporary, the value of the equity security is reduced to fair value and a corresponding charge to earnings is recognized. | |||||||||
The Company follows the accounting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320-10 as it relates to the recognition and presentation of other-than-temporary impairment (“OTTI”). This accounting guidance specifies that (a) if a company does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not, the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held to maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the non-credit portion of a previous other-than-temporary impairment would be amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. | |||||||||
Restricted Investment in Bank Stock | |||||||||
Restricted bank stock is comprised of restricted stock of the Federal Home Loan Bank of Pittsburgh (“FHLB”) in the amount of $635,000 and the Atlantic Community Bankers Bank in the amount of $12,000 at December 31, 2014. Federal law requires a member institution of the FHLB to hold stock of its district bank according to a predetermined formula. These restricted securities are carried at cost. | |||||||||
Loans | |||||||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the principal amount outstanding, net of deferred loan fees and costs. Interest income is accrued on the principal amount outstanding. Loan origination and commitment fees and related direct costs are deferred and amortized to income over the term of the respective loan and loan commitment period as a yield adjustment. | |||||||||
Loans held-for-sale consist of residential mortgage loans and are carried at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recognized through a valuation allowance charged to income. Gains and losses on residential mortgages held-for-sale are included in non-interest income. | |||||||||
Non-Performing Assets | |||||||||
Non-performing assets are comprised of accruing loans past due 90 days or more, non-accrual loans and investment securities, restructured loans, other real estate owned and repossessed assets. Non-accrual loans and investment securities are those on which the accrual of interest has ceased. Loans and indirect lease financing loans are placed on non-accrual status immediately if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more and collateral is insufficient to cover principal and interest. Interest accrued, but not collected at the date a loan is placed on non-accrual status, is reversed and charged against interest income. Subsequent cash receipts are applied either to the outstanding principal or recorded as interest income, depending on management’s assessment of the ultimate collectability of principal and interest. Loans are returned to an accrual status when the borrower’s ability to make periodic principal and interest payments has returned to normal (i.e. brought current with respect to principal or interest or restructured) and the paying capacity of the borrower and/or the underlying collateral is deemed sufficient to cover principal and interest. | |||||||||
From time to time, QNB may extend, restructure, or otherwise modify the terms of existing loans, on a case-by-case basis, to remain competitive and retain certain customers, as well as assist other customers that may be experiencing financial difficulties. A loan is considered to be a troubled debt restructuring (“TDR”) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates to less than the current market rate for new obligations with similar risk. Loans classified as TDRs are considered non-performing and are also designated as impaired. | |||||||||
Accounting for impairment in the performance of a loan is required when it is probable that all amounts, including both principal and interest, will not be collected in accordance with the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, at the loan’s observable market price or the fair value of the collateral if the loans are collateral dependent. Impairment criteria are applied to the loan portfolio exclusive of smaller homogeneous loans such as residential mortgage and consumer loans which are evaluated collectively for impairment. | |||||||||
Loans are fully charged-off or charged down to net realizable value (fair value of collateral less estimated costs to sell) when deemed uncollectible due to bankruptcy or other factors, or when they reach a defined number of days past due based on loan product, industry practice, terms and other factors. | |||||||||
Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. | |||||||||
Allowance for Loan Losses | |||||||||
QNB maintains an allowance for loan losses, which is intended to absorb probable known and inherent losses in the outstanding loan portfolio. The allowance is reduced by actual credit losses and is increased by the provision for loan losses and recoveries of previous losses. The provisions for loan losses are charged to earnings to bring the total allowance for loan losses to a level considered necessary by management. | |||||||||
The allowance for loan losses is based on management’s continuing review and evaluation of the loan portfolio. The level of the allowance is determined by assigning specific reserves to individually identified problem credits and general reserves to all other loans. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The portion of the allowance that is allocated to internally criticized and non-accrual loans is determined by estimating the inherent loss on each credit after giving consideration to the value of underlying collateral. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates. These loss rates are based on a three year history of charge-offs and are more heavily weighted for recent experience for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include: | |||||||||
• | Lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices. | ||||||||
• | External factor effects, such as legal and regulatory requirements. | ||||||||
• | National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. | ||||||||
• | Nature and volume of the portfolio including growth. | ||||||||
• | Experience, ability, and depth of lending management and staff. | ||||||||
• | Volume and severity of past due, classified and nonaccrual loans. | ||||||||
• | Quality of the Company’s loan review system, and the degree of oversight by the Company’s Board of Directors. | ||||||||
• | Existence and effect of any concentrations of credit and changes in the level of such concentrations. | ||||||||
Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. | |||||||||
An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | |||||||||
Management emphasizes loan quality and close monitoring of potential problem credits. Credit risk identification and review processes are utilized in order to assess and monitor the degree of risk in the loan portfolio. QNB’s lending and credit administration staff are charged with reviewing the loan portfolio and identifying changes in the economy or in a borrower’s circumstances which may affect the ability to repay debt or the value of pledged collateral. A loan classification and review system exists that identifies those loans with a higher than normal risk of collection. Each commercial loan is assigned a grade based upon an assessment of the borrower’s financial capacity to service the debt and the presence and value of collateral for the loan. An independent loan review group tests risk assessments and evaluates the adequacy of the allowance for loan losses. Management meets monthly to review the credit quality of the loan portfolio and quarterly to review the allowance for loan losses. | |||||||||
In addition, various regulatory agencies, as an integral part of their examination process, periodically review QNB’s allowance for loan losses. Such agencies may require QNB to recognize additions to the allowance based on their judgments using information available to them at the time of their examination. | |||||||||
Management believes that it uses the best information available to make determinations about the adequacy of the allowance and that it has established its existing allowance for loan losses in accordance with GAAP. If circumstances differ substantially from the assumptions used in making determinations, future adjustments to the allowance for loan losses may be necessary and results of operations could be affected. Because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that increases to the allowance will not be necessary should the quality of any loans deteriorate as a result of the factors discussed above. | |||||||||
Transfers of Financial Assets | |||||||||
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||||||
Servicing Assets | |||||||||
Servicing assets are recognized as separate assets when rights are acquired through the sale of financial assets. When mortgage loans are sold, a portion of the cost of originating the loan is allocated to the servicing rights based on relative fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The Company subsequently measures servicing rights using the amortization method where servicing rights are amortized in proportion to and over the period of estimated net servicing income. On a quarterly basis an independent third party determines the fair value of QNB’s servicing assets. These assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranches. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the valuation allowance may be recorded as an increase to income. Capitalized servicing rights are reported in other assets and are amortized into other noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. | |||||||||
Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. | |||||||||
Foreclosed Assets | |||||||||
Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets. At December 31, 2014 and 2013, the Company had foreclosed assets of $3,025,000 and $2,825,000, respectively. These amounts are included in other assets on the balance sheet. | |||||||||
Premises and Equipment | |||||||||
Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are calculated principally on an accelerated or straight-line basis over the estimated useful lives of the assets, or the shorter of the estimated useful life or lease term for leasehold improvements, as follows: | |||||||||
Buildings 10 to 40 years | |||||||||
Furniture and Equipment 3 to 10 years | |||||||||
Expenditures for maintenance and repairs are charged to operations as incurred. Gains or losses upon disposition are reflected in earnings as realized. | |||||||||
Bank-Owned Life Insurance | |||||||||
The Bank invests in bank-owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by the Bank on a select group of employees. The Bank is the owner and beneficiary of the policies. Income from the increase in cash surrender value of the policies as well as the receipt of death benefits is included in non-interest income on the income statement. | |||||||||
The Company follows the accounting guidance for postretirement benefit aspects of endorsement split-dollar life insurance arrangements which applies to life insurance arrangements that provide an employee with a specified benefit that is not limited to the employee’s active service period, including certain bank-owned life insurance policies. It requires an employer to recognize a liability and related compensation costs for future benefits that extend to postretirement periods. The expense recorded during 2014 and 2013 was approximately $21,000 and $19,000, respectively, and is included in non-interest expense under salaries and benefits expense. | |||||||||
Stock-Based Compensation | |||||||||
At December 31, 2014, QNB sponsored stock-based compensation plans, administered by a Board committee, under which both qualified and non-qualified stock options may be granted periodically to certain employees. QNB accounts for all awards granted under stock-based compensation plans in accordance with FASB ASC 718, Compensation - Stock Compensation. Compensation cost has been measured using the fair value of an award on the grant date and is recognized over the service period, which is usually the vesting period. | |||||||||
Stock-based compensation expense was approximately $83,000 and $71,000 for the years ended December 31, 2014 and 2013, respectively. There was no tax benefit recognized related to this compensation for the years ended December 31, 2014 and 2013. | |||||||||
The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the option and each vesting date. QNB estimated the fair value of stock options on the date of the grant using the Black-Scholes option pricing model. The model requires the use of numerous assumptions, many of which are highly subjective in nature. The following assumptions were used in the option pricing model in determining the fair value of options granted during the periods presented. | |||||||||
Year ended December 31, | 2014 | 2013 | |||||||
Risk free interest rate | 0.69 | % | 0.35 | % | |||||
Dividend yield | 4.28 | 4.26 | |||||||
Volatility | 28.1 | 34.1 | |||||||
Expected life (years) | 5 | 5 | |||||||
The weighted average fair value per share of options granted during 2014 and 2013 was $3.81 and $4.52, respectively. The risk-free interest rate was selected based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued. Historical information was the primary basis for the selection of the expected dividend yield, expected volatility and expected lives of the options. | |||||||||
Income Taxes | |||||||||
QNB accounts for income taxes under the asset/liability method in accordance with income tax accounting guidance (ASC 740 - Income Taxes). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when, in the judgment of management, it is more likely than not that such deferred tax assets will not become available. Because the judgment about the level of future taxable income is dependent to a great extent on matters that may, at least in part, be beyond QNB’s control, it is at least reasonably possible that management’s judgment about the need for a valuation allowance for deferred taxes could change in the near term. | |||||||||
In connection with the accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions, QNB has evaluated its tax positions as of December 31, 2014. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has more than a 50 percent likelihood of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Under the “more-likely-than-not” threshold guidelines, QNB believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. As of December 31, 2014, QNB had no material unrecognized tax benefits or accrued interest and penalties. QNB’s policy is to account for interest as a component of interest expense and penalties as a component of other expense. The Company and its subsidiary are subject to U.S. Federal income tax as well as income tax of the Commonwealth of Pennsylvania. QNB is no longer subject to examination by U.S. Federal or State taxing authorities for years before 2011. | |||||||||
Treasury Stock | |||||||||
Common stock shares repurchased are recorded as treasury stock at cost. | |||||||||
Earnings Per Share | |||||||||
Basic earnings per share excludes any dilutive effects of options and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share gives effect to all dilutive potential common shares that were outstanding during the period. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. | |||||||||
Treasury shares are not deemed outstanding for earnings per share calculations. | |||||||||
Comprehensive Income | |||||||||
Comprehensive income is defined as the change in equity of a business entity during a period due to transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. Comprehensive income consists of net income and other comprehensive income. For QNB, the primary component of other comprehensive income is the unrealized holding gains or losses on available-for-sale investment securities and unrealized losses on available-for-sale investment securities related to factors other than credit on debt securities. | |||||||||
Revenue Recognition | |||||||||
The Company recognizes revenue in the consolidated statements of income as it is earned and when collectability is reasonably assured. The primary source of revenue is interest income from interest earning assets, which is recognized on the accrual basis of accounting using the effective interest method. The recognition of revenues from interest earning assets is based upon formulas from underlying loan agreements, securities contracts or other similar contracts. Non-interest income is recognized on the accrual basis of accounting as services are provided or as transactions occur. Non-interest income includes fees from brokerage and advisory service, deposit accounts, merchant services, ATM and debit card fees, mortgage banking activities, and other miscellaneous services and transactions. | |||||||||
Advertising Costs | |||||||||
Advertising costs are recorded in the period they are incurred within operating expenses in non-interest expense in the consolidated statements of income. | |||||||||
Financial Instruments with Off-Balance-Sheet Risk | |||||||||
The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of these instruments. The Company uses the same credit policies in making commitments and contractual obligations as it does for on-balance-sheet instruments. The Company reflects its estimate of credit risk for these instruments in other liabilities on the consolidated balance sheet with the corresponding expense recorded in other operating expenses in the consolidated statement of income. | |||||||||
Subsequent Events | |||||||||
QNB has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2014 for items that should potentially be recognized or disclosed in these consolidated financial statements. | |||||||||
Recent Accounting Pronouncements | |||||||||
In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-04 – Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The ASU clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The objective of this ASU is to promote uniformity in practice on this topic. The amendment is effective for fiscal years and interim periods within those years beginning after December 15, 2014. The Company does not anticipate the adoption of this guidance will have a material impact on its consolidated financial statements but will result in expanded disclosures. | |||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU was issued to help improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The ASU’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new ASU. | |||||||||
In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The provisions in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently evaluating the impact the adoption of the standard will have on its financial position or results of operations. |
Note_2_Earnings_Per_Share_and_
Note 2 - Earnings Per Share and Share Repurchase Plan | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings Per Share [Text Block] | Note 2 – Earnings Per Share and Share Repurchase Plan | ||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||
Year ended December 31, | 2014 | 2013 | |||||||
Numerator for basic and diluted earnings per share - net income | $ | 8,998 | $ | 8,392 | |||||
Denominator for basic earnings per share - weighted average shares outstanding | 3,291,939 | 3,248,397 | |||||||
Effect of dilutive securities - employee stock options | 10,635 | 11,678 | |||||||
Denominator for diluted earnings per share - adjusted weighted average shares outstanding | 3,302,574 | 3,260,075 | |||||||
Earnings per share - basic | $ | 2.73 | $ | 2.58 | |||||
Earnings per share - diluted | $ | 2.72 | $ | 2.57 | |||||
There were 28,700 and 49,800 stock options that were anti-dilutive as of December 31, 2014 and 2013, respectively. These stock options were not included in the above calculation. | |||||||||
On January 24, 2008, QNB announced that the Board of Directors authorized the repurchase of up to 50,000 shares of its common stock in open market or privately negotiated transactions. On February 9, 2009, the Board of Directors approved increasing the authorization to 100,000 shares. The repurchase authorization does not bear a termination date. There were no shares repurchased during the years ended December 31, 2014 or 2013. As of December 31, 2014 and 2013, 57,883 shares were repurchased under this authorization at an average price of $16.97 and a total cost of $982,000 and recorded to Treasury stock. |
Note_3_Cash_and_Cash_Equivalen
Note 3 - Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | Note 3 – Cash and Cash Equivalents |
Included in cash and cash equivalents are reserves in the form of deposits with the Federal Reserve Bank of Philadelphia. As of December 31, 2014 and 2013 QNB was not required to maintain reserves with the Federal Reserve Bank of Philadelphia. |
Note_4_Investment_Securities
Note 4 - Investment Securities | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 4 - Investment Securities | ||||||||||||||||||||||||||||||||||||||
Trading | |||||||||||||||||||||||||||||||||||||||
Starting in 2014, QNB engaged in trading activities for its own account. Municipal securities that are held principally for resale in the near term are recorded in the trading account at fair value with changes in fair value recorded in net gain on trading activities in non-interest income. There were net realized and unrealized gains of $156,000 for 2014. Unrealized gains on trading activity related to trading securities still held at December, 2014 totaled $24,000. Interest and dividends are included in interest income. | |||||||||||||||||||||||||||||||||||||||
There were no trading securities held by QNB at December 31, 2013. Trading securities, at fair value, at December 31, 2014 were as follows: | |||||||||||||||||||||||||||||||||||||||
Fair | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | value | ||||||||||||||||||||||||||||||||||||||
State and municipal | $ | 4,207 | |||||||||||||||||||||||||||||||||||||
Available-For-Sale | |||||||||||||||||||||||||||||||||||||||
The amortized cost and fair values of investment securities available-for-sale at December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||||
unrealized | unrealized | ||||||||||||||||||||||||||||||||||||||
Fair | holding | holding | Amortized | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | value | gains | losses | cost | |||||||||||||||||||||||||||||||||||
U.S. Government agency | $ | 62,665 | $ | 212 | $ | (472 | ) | $ | 62,925 | ||||||||||||||||||||||||||||||
State and municipal | 72,569 | 1,500 | (150 | ) | 71,219 | ||||||||||||||||||||||||||||||||||
U.S. Government agencies and sponsored enterprises (GSEs): | |||||||||||||||||||||||||||||||||||||||
Mortgage-backed | 136,192 | 1,819 | (466 | ) | 134,839 | ||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations (CMOs) | 87,662 | 330 | (1,300 | ) | 88,632 | ||||||||||||||||||||||||||||||||||
Pooled trust preferred | 2,439 | 160 | (1,240 | ) | 3,519 | ||||||||||||||||||||||||||||||||||
Corporate debt | 6,037 | 30 | - | 6,007 | |||||||||||||||||||||||||||||||||||
Equity | 7,655 | 1,022 | (70 | ) | 6,703 | ||||||||||||||||||||||||||||||||||
Total investment securities available-for-sale | $ | 375,219 | $ | 5,073 | $ | (3,698 | ) | $ | 373,844 | ||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||||
unrealized | unrealized | ||||||||||||||||||||||||||||||||||||||
Fair | holding | holding | Amortized | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | value | gains | losses | cost | |||||||||||||||||||||||||||||||||||
U.S. Government agency | $ | 71,639 | $ | 195 | $ | (1,702 | ) | $ | 73,146 | ||||||||||||||||||||||||||||||
State and municipal | 87,199 | 1,023 | (1,627 | ) | 87,803 | ||||||||||||||||||||||||||||||||||
U.S. Government agencies and sponsored enterprises (GSEs): | |||||||||||||||||||||||||||||||||||||||
Mortgage-backed | 139,723 | 1,436 | (2,361 | ) | 140,648 | ||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations (CMOs) | 75,394 | 556 | (2,334 | ) | 77,172 | ||||||||||||||||||||||||||||||||||
Pooled trust preferred | 2,069 | 85 | (1,535 | ) | 3,519 | ||||||||||||||||||||||||||||||||||
Corporate debt | 6,021 | 24 | (13 | ) | 6,010 | ||||||||||||||||||||||||||||||||||
Equity | 6,625 | 1,127 | (44 | ) | 5,542 | ||||||||||||||||||||||||||||||||||
Total investment securities available-for-sale | $ | 388,670 | $ | 4,446 | $ | (9,616 | ) | $ | 393,840 | ||||||||||||||||||||||||||||||
The amortized cost and fair value of securities available-for-sale by contractual maturity at December 31, 2014 are shown in the following table. 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 are assigned to categories based on contractual maturity except for mortgage-backed securities and CMOs which are based on the estimated average life of these securities and state and municipal securities which are based on pre-refunded date, if applicable. | |||||||||||||||||||||||||||||||||||||||
Amortized | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Fair value | cost | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 9,269 | $ | 9,170 | |||||||||||||||||||||||||||||||||||
Due after one year through five years | 260,683 | 260,108 | |||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 73,771 | 73,496 | |||||||||||||||||||||||||||||||||||||
Due after ten years | 23,841 | 24,367 | |||||||||||||||||||||||||||||||||||||
Equity securities | 7,655 | 6,703 | |||||||||||||||||||||||||||||||||||||
Total investment securities available-for-sale | $ | 375,219 | $ | 373,844 | |||||||||||||||||||||||||||||||||||
Proceeds from sales of investment securities available-for-sale were $29,972,000 and $19,559,000 for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||
The following table presents information related to the Company’s gains and losses on the sales of equity and debt securities, and losses recognized for the other-than-temporary impairment (OTTI) of these investments. | |||||||||||||||||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Other-than- | Other-than- | ||||||||||||||||||||||||||||||||||||||
Gross | Gross | temporary | Gross | Gross | temporary | ||||||||||||||||||||||||||||||||||
realized | realized | impairment | realized | realized | impairment | ||||||||||||||||||||||||||||||||||
gains | losses | losses | Net gains | gains | losses | losses | Net gains | ||||||||||||||||||||||||||||||||
Equity securities | $ | 1,051 | $ | (6 | ) | $ | - | $ | 1,045 | $ | 672 | $ | - | $ | (43 | ) | $ | 629 | |||||||||||||||||||||
Debt securities | 310 | (243 | ) | - | 67 | 196 | (1 | ) | - | 195 | |||||||||||||||||||||||||||||
Total | $ | 1,361 | $ | (249 | ) | $ | - | $ | 1,112 | $ | 868 | $ | (1 | ) | $ | (43 | ) | $ | 824 | ||||||||||||||||||||
The tax expense applicable to the net realized gains were $378,000 and $280,000 for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||||||||
There were no other-than-temporary impairment charges recognized for debt securities still held by QNB for the years ended December 31, 2014 or 2013. | |||||||||||||||||||||||||||||||||||||||
QNB recognizes OTTI for debt securities classified as available-for-sale in accordance with FASB ASC 320, Investments – Debt and Equity Securities, which requires that we assess whether we intend to sell or it is more likely than not that the Company will be required to sell a security before recovery of its amortized cost basis less any current-period credit losses. For debt securities that are considered other-than-temporarily impaired and that we do not intend to sell and will not be required to sell prior to recovery of our amortized cost basis, the amount of the impairment is separated into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the security’s amortized cost basis and the present value of its expected future cash flows discounted at the security’s effective yield. The remaining difference between the security’s fair value and the present value of future expected cash flows is due to factors that are not credit related and, therefore, is not required to be recognized as a loss in the income statement, but is recognized in other comprehensive income. For equity securities, once a decline in value is determined to be other-than-temporary, the value of the equity security is reduced to fair value and a corresponding charge to earnings is recognized. QNB believes that we will fully collect the carrying value of securities on which we have recorded a non-credit related impairment in other comprehensive income. | |||||||||||||||||||||||||||||||||||||||
The following table presents a rollforward of the credit loss component recognized in earnings. The credit loss component of the amortized cost represents the difference between the present value of expected future cash flows and the amortized cost basis of the security prior to considering credit losses. The beginning balance represents the credit loss component for debt securities for which OTTI occurred prior to the beginning of the year. Credit-impaired debt securities must be presented in two components based upon whether the current period is the first time the debt security was credit-impaired (initial credit impairment) or is not the first time the debt security was credit-impaired (subsequent credit impairments). No credit impairments were recognized in 2014 or 2013. In November 2014, the Bank sold a pooled trust preferred holding, PreTSL V, which had OTTI recorded in a prior period. The bank recorded a gain on sale of $56,000 for this security, which had a carrying value of $0. The following table presents a summary of the cumulative credit-related other-than-temporary impairment charges recognized as components of earnings for debt securities still held by QNB: | |||||||||||||||||||||||||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 1,271 | $ | 1,271 | |||||||||||||||||||||||||||||||||||
Reductions: sale, collateralized debt obligation | (118 | ) | - | ||||||||||||||||||||||||||||||||||||
Additions: | |||||||||||||||||||||||||||||||||||||||
Initial credit impairments | - | - | |||||||||||||||||||||||||||||||||||||
Subsequent credit impairments | - | - | |||||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 1,153 | $ | 1,271 | |||||||||||||||||||||||||||||||||||
Held-To-Maturity | |||||||||||||||||||||||||||||||||||||||
The amortized cost and fair values of investment securities held-to-maturity at December 31, 2014 and December 31, 2013 were as follows: | |||||||||||||||||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||||||||||||||||||
unrealized | unrealized | unrealized | unrealized | ||||||||||||||||||||||||||||||||||||
Amortized | holding | holding | Fair | Amortized | holding | holding | Fair | ||||||||||||||||||||||||||||||||
cost | gains | losses | value | cost | gains | losses | value | ||||||||||||||||||||||||||||||||
State and municipal | $ | 146 | $ | 10 | $ | - | $ | 156 | $ | 146 | $ | 16 | $ | - | $ | 162 | |||||||||||||||||||||||
The amortized cost and fair value of securities held-to-maturity by contractual maturity at December 31, 2014 are shown in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||||||||||||||||
Amortized | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Fair value | cost | |||||||||||||||||||||||||||||||||||||
Due in one year or less | - | - | |||||||||||||||||||||||||||||||||||||
Due after one year through five years | $ | 156 | $ | 146 | |||||||||||||||||||||||||||||||||||
Due after five years through ten years | - | - | |||||||||||||||||||||||||||||||||||||
Due after ten years | - | - | |||||||||||||||||||||||||||||||||||||
Total investment securities held-to-maturity | $ | 156 | $ | 146 | |||||||||||||||||||||||||||||||||||
There were no sales of investment securities classified as held-to-maturity during 2014 or 2013. | |||||||||||||||||||||||||||||||||||||||
At December 31, 2014 and December 31, 2013, investment securities available-for-sale totaling $206,774,000 and $207,868,000, respectively, were pledged as collateral for repurchase agreements and deposits of public funds. | |||||||||||||||||||||||||||||||||||||||
Securities that have been in a continuous unrealized loss position are as follows: | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||||
No. of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
securities | value | losses | value | losses | value | losses | |||||||||||||||||||||||||||||||||
U.S. Government agency | 29 | $ | 15,466 | $ | (30 | ) | 23,941 | $ | (442 | ) | $ | 39,407 | $ | (472 | ) | ||||||||||||||||||||||||
State and municipal | 39 | 3,452 | (31 | ) | 11,964 | (119 | ) | 15,416 | (150 | ) | |||||||||||||||||||||||||||||
Mortgage-backed | 34 | 6,521 | (15 | ) | 38,586 | (451 | ) | 45,107 | (466 | ) | |||||||||||||||||||||||||||||
Collateralized mortgage obligations (CMOs) | 51 | 2,003 | (205 | ) | 35,687 | (1,095 | ) | 37,690 | (1,300 | ) | |||||||||||||||||||||||||||||
Pooled trust preferred | 5 | - | - | 1,978 | (1,240 | ) | 1,978 | (1,240 | ) | ||||||||||||||||||||||||||||||
Equity | 7 | 1,303 | (70 | ) | - | - | 1,303 | (70 | ) | ||||||||||||||||||||||||||||||
Total | 165 | $ | 28,745 | $ | (351 | ) | $ | 112,156 | $ | (3,347 | ) | $ | 140,901 | $ | (3,698 | ) | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||||
No. of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
securities | value | losses | value | losses | value | losses | |||||||||||||||||||||||||||||||||
U.S. Government agency | 44 | $ | 54,563 | $ | (1,548 | ) | 2,846 | $ | (154 | ) | $ | 57,409 | $ | (1,702 | ) | ||||||||||||||||||||||||
State and municipal | 87 | 33,750 | (1,379 | ) | 4,288 | (248 | ) | 38,038 | (1,627 | ) | |||||||||||||||||||||||||||||
Mortgage-backed | 54 | 75,720 | (2,238 | ) | 1,884 | (123 | ) | 77,604 | (2,361 | ) | |||||||||||||||||||||||||||||
Collateralized mortgage obligations (CMOs) | 45 | 33,622 | (1,413 | ) | 18,567 | (921 | ) | 52,189 | (2,334 | ) | |||||||||||||||||||||||||||||
Pooled trust preferred | 5 | - | - | 1,683 | (1,535 | ) | 1,683 | (1,535 | ) | ||||||||||||||||||||||||||||||
Corporate debt | 2 | 1,987 | (13 | ) | - | - | 1,987 | (13 | ) | ||||||||||||||||||||||||||||||
Equity | 3 | 394 | (24 | ) | 136 | (20 | ) | 530 | (44 | ) | |||||||||||||||||||||||||||||
Total | 240 | $ | 200,036 | $ | (6,615 | ) | $ | 29,404 | $ | (3,001 | ) | $ | 229,440 | $ | (9,616 | ) | |||||||||||||||||||||||
Management evaluates debt securities, which are comprised of U.S. Government Agencies, state and municipalities, mortgage-backed securities, CMOs and other issuers, for OTTI and considers the current economic conditions, the length of time and the extent to which the fair value has been less than cost, interest rates and the bond rating of each security. The unrealized losses at December 31, 2014 in U.S. Government securities, state and municipal securities, mortgage-backed securities and CMOs are primarily the result of interest rate fluctuations. If held to maturity, these bonds will mature at par, and QNB will not realize a loss. QNB has the intent to hold the securities and does not believe it will be required to sell the securities before recovery occurs. | |||||||||||||||||||||||||||||||||||||||
QNB holds six pooled trust preferred securities as of December 31, 2014. These securities have a total amortized cost of $3,519,000 and a fair value of $2,439,000. Five of the six securities have been in an unrealized loss position for more than twelve months. All of the pooled trust preferred securities are available-for-sale securities and are carried at fair value. | |||||||||||||||||||||||||||||||||||||||
The following table provides additional information related to pooled trust preferred securities (PreTSLs) as of December 31, 2014: | |||||||||||||||||||||||||||||||||||||||
Deal | Class | Book | Fair | Unreal- | Total | Moody's | Current | Current | Actual deferrals and | Total performing collateral as a % of outstanding bonds | |||||||||||||||||||||||||||||
value | value | ized | Realized | recognized | /Fitch | number of | number of | defaults as a | |||||||||||||||||||||||||||||||
gains (losses) | OTTI | OTTI | ratings | performing | performing | % of total | |||||||||||||||||||||||||||||||||
credit | credit | banks | insurance | collateral | |||||||||||||||||||||||||||||||||||
loss | loss | companies | |||||||||||||||||||||||||||||||||||||
(YTD | |||||||||||||||||||||||||||||||||||||||
2014) | |||||||||||||||||||||||||||||||||||||||
PreTSL IV | Mezzanine* | $ | 243 | $ | 208 | $ | (35 | ) | $ | - | $ | (1 | ) | B1/B | 5 | - | 18 | % | 140.2 | % | |||||||||||||||||||
PreTSL XVII | Mezzanine | 752 | 502 | (250 | ) | - | (222 | ) | C/C | 34 | 5 | 27.3 | 87.2 | ||||||||||||||||||||||||||
PreTSL XIX | Mezzanine | 988 | 508 | (480 | ) | - | - | C/C | 38 | 12 | 13.3 | 92.4 | |||||||||||||||||||||||||||
PreTSL XXV | Mezzanine | 766 | 423 | (343 | ) | - | (222 | ) | C/C | 48 | 5 | 30.7 | 85.5 | ||||||||||||||||||||||||||
PreTSL XXVI | Mezzanine | 469 | 337 | (132 | ) | - | (270 | ) | C/C | 43 | 7 | 25.9 | 91 | ||||||||||||||||||||||||||
PreTSL XXVI | Mezzanine | 301 | 461 | 160 | - | (438 | ) | C/C | 43 | 7 | 25.9 | 91 | |||||||||||||||||||||||||||
$ | 3,519 | $ | 2,439 | $ | (1,080 | ) | $ | - | $ | (1,153 | ) | ||||||||||||||||||||||||||||
Mezzanine* - only class of bonds still outstanding (represents the senior-most obligation of the trust) | |||||||||||||||||||||||||||||||||||||||
On January 14, 2014, Regulators released a final interim rule authorizing retention of pooled trust preferred securities backed primarily by bank-issued trust preferred securities which included the PreTSLs held by QNB. During 2014, there was a noticeable increase in trading activity in this market, as sellers disposed of non-exempted trust preferred securities. However, we believe most of these trades occurred under distress and do not represent trades made in an orderly market. Despite the trades that took place as discussed previously, the market for these securities at December 31, 2014 was not active and markets for similar securities also are not active, relative to historical levels of trading activity. The new issue market is also inactive and the market values for these securities are depressed relative to historical levels. Lack of liquidity in the market for trust preferred collateralized debt obligations, credit rating downgrades and market uncertainties related to the financial industry are all factors contributing to the temporary impairment of these securities. Although these securities are classified as available-for-sale, the Company has the intent to hold the securities and does not believe it will be required to sell the securities before recovery occurs. As illustrated in the previous table, these securities are comprised mainly of securities issued by banks, and to a lesser degree, insurance companies. QNB owns the mezzanine tranches of these securities, except for PreTSL IV which represents the senior-most obligation of the trust. | |||||||||||||||||||||||||||||||||||||||
On a quarterly basis management evaluates securities for OTTI, which involves the use of a third-party valuation firm to assist with the valuation. When evaluating these investments a credit-related portion and a non-credit related portion of OTTI are determined. | |||||||||||||||||||||||||||||||||||||||
The credit related portion is recognized in earnings and represents the expected shortfall in future cash flows. The non-credit related portion is recognized in other comprehensive income and represents the difference between the book value and the fair value of the security less any current quarter credit related impairment. For the year ended December 31, 2014, no other-than-temporary impairment charges representing credit impairment were recognized on our pooled trust preferred collateralized debt obligations. A discounted cash flow analysis provides the best estimate of credit related OTTI for these securities. In addition, a weighting factor was applied to any available trade data when determining the final estimation of fair value. Additional information related to this analysis follows: | |||||||||||||||||||||||||||||||||||||||
All of the pooled trust preferred collateralized debt obligations held by QNB are rated lower than AA and are measured for OTTI within the scope of ASC 325 (formerly known as EITF 99-20), Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests That Continue to be Held by a Transferor in Securitized Financial Assets, and Amendments to the Impairment Guidance of EITF Issue No. 99-20 (formerly known as EITF 99-20-1). QNB performs a discounted cash flow analysis on all of its impaired collateralized debt obligation securities to determine if the amortized cost basis of an impaired security will be recovered. In determining whether a credit loss exists, QNB uses its best estimate of the present value of cash flows expected to be collected from the debt security and discounts them at the effective yield implicit in the security at the date of acquisition or the prospective yield for those securities with prior OTTI charges. The discounted cash flow analysis is considered to be the primary evidence when determining whether credit related other-than-temporary impairment exists. | |||||||||||||||||||||||||||||||||||||||
Results of a discounted cash flow test are significantly affected by other variables such as the estimate of future cash flows (including prepayments), credit worthiness of the underlying banks and insurance companies and determination of probability and severity of default of the underlying collateral. The following provides additional information for each of these variables: | |||||||||||||||||||||||||||||||||||||||
● | Estimate of Future Cash Flows – Cash flows are constructed in an INTEXcalc valuation model. INTEX is a proprietary cash flow model recognized as the industry standard for analyzing all types of structured debt products. It includes each deal’s structural features updated with trustee information, including asset-by-asset detail, as it becomes available. The modeled cash flows are then used to determine if all the scheduled principal and interest payments of the investments will be returned. For purposes of the cash flow analysis, relatively modest rates of prepayment were forecasted (1%). In addition to the base prepayment assumption, due to the enactment of the Dodd-Frank financial legislation additional prepayment analysis was performed. First, trust preferred securities issued by banks with more than $15 billion in total assets at December 31, 2009 were identified. The current credit rating of these institutions was reviewed and it was assumed that any issuer with an investment grade credit rating would prepay their issuance as soon as possible or July 1, 2015 for bank holding company subsidiaries of foreign banking organizations that have relied on Supervision and Regulation Letter SR-01-1. For those institutions rated below investment grade the holding companies’ approximate cost of long-term funding given their rating and marketplace interest rate was estimated. The following assumption was made; any holding company that could refinance for a cost savings of more than 2% will refinance and will do so as soon as possible, or July 1, 2015. Finally, for issuers not impacted by the Tier 1 regulatory capital legislation enacted by the Dodd-Frank Act, the issuers that have shown a recent history of prepayment of both floating rate and fixed rate issues were identified and it was assumed these issuers will prepay as soon as possible. | ||||||||||||||||||||||||||||||||||||||
● | Credit Analysis – A quarterly credit evaluation is performed for the companies comprising the collateral across the various pooled trust preferred securities. This credit evaluation considers any available evidence and focuses on capitalization, asset quality, profitability, liquidity, stock price performance, whether the institution has received TARP funding and whether the institution has shown the ability to generate additional capital either internally or externally. | ||||||||||||||||||||||||||||||||||||||
● | Probability of Default – A near-term probability of default is determined for each issuer based on its financial condition and is used to calculate the expected impact of future deferrals and defaults on the expected cash flows. Each issuer in the collateral pool is assigned a near-term probability of default based on individual performance and financial characteristics. Various studies suggest that the rate of bank failures between 1934 and 2008 were approximately 0.36%. Thus, in addition to the specific bank default assumptions used for the near term, future defaults on the individual banks in the analysis for 2015 and beyond the rate used is calculated based on using the above mentioned 36 basis points and factoring that number based on a comparison of key financial ratios of active individual issuers without a short-term probability of default compared to all FDIC insured banks. | ||||||||||||||||||||||||||||||||||||||
● | Severity of Loss – In addition to the probability of default discussed above, a severity of loss (projected recovery) is determined in all cases. In the current analysis, the severity of loss ranges from 0% to 100% depending on the estimated credit worthiness of the individual issuer. Based on information from various published studies, a 95% severity of loss was utilized for defaults projected in 2015 and thereafter. | ||||||||||||||||||||||||||||||||||||||
In addition to the above factors, the evaluation of impairment also includes a stress test analysis which provides an estimate of future risk for each tranche. This stressed breakpoint is then compared to the level of assets with credit concerns in each tranche. This comparison allows management to identify those pools that are at a greater risk for a future adverse change in cash flows so the asset quality in those pools can be monitored more closely for potential deterioration of credit quality. | |||||||||||||||||||||||||||||||||||||||
Based upon the analysis performed by management as of December 31, 2014, it is probable that we will collect all contractual principal and interest payments on one of our six pooled trust preferred securities, PreTSL XIX. The expected principal shortfall on the remaining pooled trust preferred securities resulted in credit related other-than-temporary impairment charges in previous years. All of these pooled trust preferred securities held by QNB could be subject to additional writedowns in the future if additional deferrals and defaults occur. |
Note_5_Loans_and_Allowance_for
Note 5 - Loans and Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5 - Loans Receivable and the Allowance for Loan Losses | ||||||||||||||||||||||||
Major classes of loans are as follows: | |||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 118,845 | $ | 111,339 | |||||||||||||||||||||
Construction | 23,471 | 15,929 | |||||||||||||||||||||||
Secured by commercial real estate | 203,534 | 190,602 | |||||||||||||||||||||||
Secured by residential real estate | 53,077 | 47,672 | |||||||||||||||||||||||
State and political subdivisions | 44,104 | 33,773 | |||||||||||||||||||||||
Loans to depository institutions | - | 1,250 | |||||||||||||||||||||||
Indirect lease financing | 7,685 | 8,364 | |||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 37,147 | 29,730 | |||||||||||||||||||||||
Home equity loans and lines | 63,213 | 59,977 | |||||||||||||||||||||||
Consumer | 4,175 | 3,116 | |||||||||||||||||||||||
Total loans | 555,251 | 501,752 | |||||||||||||||||||||||
Net unearned costs (fees) | 31 | (36 | ) | ||||||||||||||||||||||
Loans receivable | $ | 555,282 | $ | 501,716 | |||||||||||||||||||||
Loans secured by commercial real estate include all loans collateralized at least in part by commercial real estate. These loans may not be for the expressed purpose of conducting commercial real estate transactions. | |||||||||||||||||||||||||
Overdrafts are reclassified as loans and are included in consumer loans above and total loans on the balance sheet. At December 31, 2014 and 2013, overdrafts were $142,000 and $138,000, respectively. | |||||||||||||||||||||||||
QNB generally lends in its trade area which is comprised of Quakertown and the surrounding communities. To a large extent, QNB makes loans collateralized at least in part by real estate. Its lending activities could be affected by changes in the general economy, the regional economy, or real estate values. Other than disclosed in the table above, at December 31, 2014, there were no concentrations of loans exceeding 10% of total loans. | |||||||||||||||||||||||||
The Company engages in a variety of lending activities, including commercial, residential real estate and consumer transactions. The Company focuses its lending activities on individuals, professionals and small to medium sized businesses. Risks associated with lending activities include economic conditions and changes in interest rates, which can adversely impact both the ability of borrowers to repay their loans and the value of the associated collateral. | |||||||||||||||||||||||||
Commercial and industrial loans, commercial real estate loans, construction loans and residential real estate loans with a business purpose are generally perceived as having more risk of default than residential real estate loans with a personal purpose and consumer loans. These types of loans involve larger loan balances to a single borrower or groups of related borrowers and are more susceptible to a risk of loss during a downturn in the business cycle. These loans may involve greater risk because the availability of funds to repay these loans depends on the successful operation of the borrower’s business. The assets financed are used within the business for its ongoing operation. Repayment of these kinds of loans generally comes from the cash flow of the business or the ongoing conversions of assets, such as accounts receivable and inventory, to cash. Typical collateral for commercial and industrial loans includes the borrower’s accounts receivable, inventory and machinery and equipment. Commercial real estate and residential real estate loans secured for a business purpose are originated primarily within the eastern Pennsylvania market area at conservative loan-to-value ratios and often backed by the individual guarantees of the borrowers or owners. Repayment of this kind of loan is dependent upon either the ongoing cash flow of the borrowing entity or the resale of or lease of the subject property. Commercial real estate loans may be affected to a greater extent than residential loans by adverse conditions in real estate markets or the economy because commercial real estate borrowers’ ability to repay their loans depends on successful development of their properties, as well as the factors affecting residential real estate borrowers. | |||||||||||||||||||||||||
Loans to state and political subdivisions are tax-exempt or taxable loans to municipalities, school districts and housing and industrial development authorities. These loans can be general obligations of the municipality or school district repaid through their taxing authority, revenue obligations repaid through the income generated by the operations of the authority, such as a water or sewer authority, or loans issued to a housing and industrial development agency, for which a private corporation is responsible for payments on the loans. | |||||||||||||||||||||||||
Loans to depository institutions consist of a loan to a commercial bank in Lehigh County, Pennsylvania. This loan is secured by shares of common stock of the borrowing institution. | |||||||||||||||||||||||||
Indirect lease financing receivables represent loans to small businesses that are collateralized by equipment. These loans tend to have higher risk characteristics but generally provide higher rates of return. These loans are originated by a third party and purchased by QNB based on criteria specified by QNB. The criteria include minimum credit scores of the borrower, term of the lease, type and age of equipment financed and geographic area. The geographic area primarily represents states contiguous to Pennsylvania. QNB is not the lessor and does not service these loans. | |||||||||||||||||||||||||
The Company originates fixed-rate and adjustable-rate real estate-residential mortgage loans for personal purposes that are secured by first liens on the underlying 1-4 family residential properties. Credit risk exposure in this area of lending is minimized by the evaluation of the credit worthiness of the borrower, including debt-to-income ratios, credit scores and adherence to underwriting policies that emphasize conservative loan-to-value ratios of generally no more than 80%. Residential mortgage loans granted in excess of the 80% loan-to-value ratio criterion are generally insured by private mortgage insurance. | |||||||||||||||||||||||||
The real estate-home equity portfolio consists of fixed-rate home equity loans and variable-rate home equity lines of credit. Risks associated with loans secured by residential properties are generally lower than commercial loans and include general economic risks, such as the strength of the job market, employment stability and the strength of the housing market. Since most loans are secured by a primary or secondary residence, the borrower’s continued employment is the greatest risk to repayment. | |||||||||||||||||||||||||
The Company offers a variety of loans to individuals for personal and household purposes. Consumer loans are generally considered to have greater risk than first or second mortgages on real estate because they may be unsecured, or, if they are secured, the value of the collateral may be difficult to assess and is more likely to decrease in value than real estate. Credit risk in this portfolio is controlled by conservative underwriting standards that consider debt-to-income levels and the creditworthiness of the borrower and, if secured, collateral values. | |||||||||||||||||||||||||
The Company employs an eight (8) grade risk rating system related to the credit quality of commercial loans, loans to depository institutions, loans to state and political subdivisions and indirect lease financing of which the first four categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. | |||||||||||||||||||||||||
1 - Excellent - no apparent risk | |||||||||||||||||||||||||
2 - Good - minimal risk | |||||||||||||||||||||||||
3 - Acceptable - average risk | |||||||||||||||||||||||||
4 - Watch List - greater than average risk | |||||||||||||||||||||||||
5 - Special Mention - potential weaknesses | |||||||||||||||||||||||||
6 - Substandard - well defined weaknesses | |||||||||||||||||||||||||
7 - Doubtful - full collection unlikely | |||||||||||||||||||||||||
8 - Loss - considered uncollectible | |||||||||||||||||||||||||
The Company maintains a loan review system, which allows for a periodic review of our loan portfolio and the early identification of potential problem loans. Each loan officer assigns a rating to commercial loans, loans to depository institutions, loans to state and political subdivisions and indirect lease financing at the time the loan is originated. Loans with risk ratings of one through three are reviewed annually based on the borrower’s fiscal year. Loans with risk ratings of four are reviewed every six to twelve months based on the dollar amount of the relationship with the borrower. Loans with risk ratings of five through eight are reviewed at least quarterly, and as often as monthly, at management’s discretion. The Company also utilizes an outside loan review firm to review the portfolio on a semi-annual basis to provide the Board of Directors and senior management an independent review of the Bank’s loan portfolio on an ongoing basis. These reviews are designed to recognize deteriorating credits in their earliest stages in an effort to reduce and control risk in the lending function as well as identifying potential shifts in the quality of the loan portfolio. The examinations by the outside loan review firm include the review of lending activities with respect to underwriting and processing new loans, monitoring the risk of existing loans and to provide timely follow-up and corrective action for loans showing signs of deterioration in quality. In addition, the outside firm reviews the methodology for the allowance for loan losses to determine compliance to policy and regulatory guidance. | |||||||||||||||||||||||||
The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
31-Dec-14 | Pass | Special mention | Substandard | Doubtful | Total | ||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 111,560 | $ | 42 | $ | 7,243 | $ | - | $ | 118,845 | |||||||||||||||
Construction | 22,981 | 128 | 362 | - | 23,471 | ||||||||||||||||||||
Secured by commercial real estate | 178,339 | 2,418 | 22,777 | - | 203,534 | ||||||||||||||||||||
Secured by residential real estate | 50,172 | 408 | 2,497 | - | 53,077 | ||||||||||||||||||||
State and political subdivisions | 42,771 | - | 1,333 | - | 44,104 | ||||||||||||||||||||
Loans to depository institutions | - | - | - | - | - | ||||||||||||||||||||
Indirect lease financing | 7,543 | - | 142 | - | 7,685 | ||||||||||||||||||||
$ | 413,366 | $ | 2,996 | $ | 34,354 | $ | - | $ | 450,716 | ||||||||||||||||
31-Dec-13 | Pass | Special mention | Substandard | Doubtful | Total | ||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 100,943 | $ | 59 | $ | 10,337 | $ | - | $ | 111,339 | |||||||||||||||
Construction | 13,751 | 827 | 1,351 | - | 15,929 | ||||||||||||||||||||
Secured by commercial real estate | 163,349 | 4,199 | 23,054 | - | 190,602 | ||||||||||||||||||||
Secured by residential real estate | 43,854 | 187 | 3,631 | - | 47,672 | ||||||||||||||||||||
State and political subdivisions | 33,488 | - | 285 | - | 33,773 | ||||||||||||||||||||
Loans to depository institutions | 1,250 | - | - | - | 1,250 | ||||||||||||||||||||
Indirect lease financing | 8,199 | - | 165 | - | 8,364 | ||||||||||||||||||||
$ | 364,834 | $ | 5,272 | $ | 38,823 | $ | - | $ | 408,929 | ||||||||||||||||
For retail loans, the Company evaluates credit quality based on the performance of the individual credits. The following tables present the recorded investment in the retail classes of the loan portfolio based on payment activity as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
31-Dec-14 | Performing | Non-performing | Total | ||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | $ | 36,922 | $ | 225 | $ | 37,147 | |||||||||||||||||||
Home equity loans and lines | 63,109 | 104 | 63,213 | ||||||||||||||||||||||
Consumer | 4,174 | 1 | 4,175 | ||||||||||||||||||||||
$ | 104,205 | $ | 330 | $ | 104,535 | ||||||||||||||||||||
31-Dec-13 | Performing | Non-performing | Total | ||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | $ | 29,329 | $ | 401 | $ | 29,730 | |||||||||||||||||||
Home equity loans and lines | 59,712 | 265 | 59,977 | ||||||||||||||||||||||
Consumer | 3,099 | 17 | 3,116 | ||||||||||||||||||||||
$ | 92,140 | $ | 683 | $ | 92,823 | ||||||||||||||||||||
The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio (excluding deferred fees and costs) summarized by the past due status, regardless of whether the loan is on non-accrual status, as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
31-Dec-14 | 30-59 days | 60-89 days | 90 days or | Total past | Current | Total loans | |||||||||||||||||||
past due | past due | more past | due loans | receivable | |||||||||||||||||||||
due | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | - | - | - | - | $ | 118,845 | $ | 118,845 | |||||||||||||||||
Construction | $ | 466 | - | - | $ | 466 | 23,005 | 23,471 | |||||||||||||||||
Secured by commercial real estate | 28 | $ | 332 | $ | 3,747 | 4,107 | 199,427 | 203,534 | |||||||||||||||||
Secured by residential real estate | 600 | 574 | - | 1,174 | 51,903 | 53,077 | |||||||||||||||||||
State and political subdivisions | - | - | - | - | 44,104 | 44,104 | |||||||||||||||||||
Loans to depository institutions | - | - | - | - | - | - | |||||||||||||||||||
Indirect lease financing | 291 | - | - | 291 | 7,394 | 7,685 | |||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 526 | - | - | 526 | 36,621 | 37,147 | |||||||||||||||||||
Home equity loans and lines | 66 | 49 | - | 115 | 63,098 | 63,213 | |||||||||||||||||||
Consumer | 16 | 8 | - | 24 | 4,151 | 4,175 | |||||||||||||||||||
$ | 1,993 | $ | 963 | $ | 3,747 | $ | 6,703 | $ | 548,548 | $ | 555,251 | ||||||||||||||
31-Dec-13 | 30-59 days | 60-89 days past due | 90 days or | Total past | Current | Total loans | |||||||||||||||||||
past due | more past | due loans | receivable | ||||||||||||||||||||||
due | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 112 | - | $ | 17 | $ | 129 | $ | 111,210 | $ | 111,339 | ||||||||||||||
Construction | - | - | - | - | 15,929 | 15,929 | |||||||||||||||||||
Secured by commercial real estate | 1,126 | $ | 361 | 255 | 1,742 | 188,860 | 190,602 | ||||||||||||||||||
Secured by residential real estate | 1,242 | 98 | 105 | 1,445 | 46,227 | 47,672 | |||||||||||||||||||
State and political subdivisions | 65 | 65 | - | 130 | 33,643 | 33,773 | |||||||||||||||||||
Loans to depository institutions | - | - | - | - | 1,250 | 1,250 | |||||||||||||||||||
Indirect lease financing | 311 | 152 | - | 463 | 7,901 | 8,364 | |||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 752 | 5 | 270 | 1,027 | 28,703 | 29,730 | |||||||||||||||||||
Home equity loans and lines | 295 | 2 | 106 | 403 | 59,574 | 59,977 | |||||||||||||||||||
Consumer | 25 | 5 | 17 | 47 | 3,069 | 3,116 | |||||||||||||||||||
$ | 3,928 | $ | 688 | $ | 770 | $ | 5,386 | $ | 496,366 | $ | 501,752 | ||||||||||||||
The following tables disclose the recorded investment in loans receivable that are either on non-accrual status or past due 90 days or more and still accruing interest as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
31-Dec-14 | Non-accrual | ||||||||||||||||||||||||
90 days or | |||||||||||||||||||||||||
more past due | |||||||||||||||||||||||||
(still accruing) | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | - | $ | 2,171 | |||||||||||||||||||||
Construction | - | 337 | |||||||||||||||||||||||
Secured by commercial real estate | - | 6,465 | |||||||||||||||||||||||
Secured by residential real estate | - | 1,467 | |||||||||||||||||||||||
State and political subdivisions | - | - | |||||||||||||||||||||||
Loans to depository institutions | - | - | |||||||||||||||||||||||
Indirect lease financing | - | - | |||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | - | 225 | |||||||||||||||||||||||
Home equity loans and lines | - | 104 | |||||||||||||||||||||||
Consumer | - | 1 | |||||||||||||||||||||||
$ | - | $ | 10,770 | ||||||||||||||||||||||
31-Dec-13 | Non-accrual | ||||||||||||||||||||||||
90 days or | |||||||||||||||||||||||||
more past due | |||||||||||||||||||||||||
(still accruing) | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | - | $ | 3,956 | ||||||||||||||||||||||
Construction | - | 1,319 | |||||||||||||||||||||||
Secured by commercial real estate | - | 4,630 | |||||||||||||||||||||||
Secured by residential real estate | - | 2,829 | |||||||||||||||||||||||
State and political subdivisions | - | - | |||||||||||||||||||||||
Loans to depository institutions | - | - | |||||||||||||||||||||||
Indirect lease financing | - | 37 | |||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | - | 401 | |||||||||||||||||||||||
Home equity loans and lines | - | 265 | |||||||||||||||||||||||
Consumer | $ | 1 | 16 | ||||||||||||||||||||||
$ | 1 | $ | 13,453 | ||||||||||||||||||||||
Activity in the allowance for loan losses for the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||
Year ended December 31, 2014 | Balance, | Provision for | Charge-offs | Recoveries | Balance, end of | ||||||||||||||||||||
beginning of | (credit to) | year | |||||||||||||||||||||||
year | loan losses | ||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 2,044 | $ | (202 | ) | $ | (17 | ) | $ | 67 | $ | 1,892 | |||||||||||||
Construction | 439 | (142 | ) | - | - | 297 | |||||||||||||||||||
Secured by commercial real estate | 2,898 | (131 | ) | (70 | ) | 3 | 2,700 | ||||||||||||||||||
Secured by residential real estate | 1,632 | 1,019 | (1,069 | ) | 48 | 1,630 | |||||||||||||||||||
State and political subdivisions | 186 | 35 | - | - | 221 | ||||||||||||||||||||
Loans to depository institutions | 4 | (4 | ) | - | - | - | |||||||||||||||||||
Indirect lease financing | 103 | 15 | (39 | ) | 14 | 93 | |||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 303 | 103 | (95 | ) | 1 | 312 | |||||||||||||||||||
Home equity loans and lines | 583 | (84 | ) | (156 | ) | 110 | 453 | ||||||||||||||||||
Consumer | 64 | 142 | (167 | ) | 46 | 85 | |||||||||||||||||||
Unallocated | 669 | (351 | ) | N/A | N/A | 318 | |||||||||||||||||||
$ | 8,925 | $ | 400 | $ | (1,613 | ) | $ | 289 | $ | 8,001 | |||||||||||||||
Year ended December 31, 2013 | Balance, | Provision for | Charge-offs | Recoveries | Balance, end of | ||||||||||||||||||||
beginning of | (credit to) | year | |||||||||||||||||||||||
year | loan losses | ||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 2,505 | $ | (421 | ) | $ | (68 | ) | $ | 28 | $ | 2,044 | |||||||||||||
Construction | 209 | 230 | - | - | 439 | ||||||||||||||||||||
Secured by commercial real estate | 3,795 | (259 | ) | (639 | ) | 1 | 2,898 | ||||||||||||||||||
Secured by residential real estate | 1,230 | 743 | (401 | ) | 60 | 1,632 | |||||||||||||||||||
State and political subdivisions | 260 | (75 | ) | - | 1 | 186 | |||||||||||||||||||
Loans to depository institutions | 15 | (11 | ) | - | - | 4 | |||||||||||||||||||
Indirect lease financing | 168 | (93 | ) | (2 | ) | 30 | 103 | ||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 324 | (21 | ) | - | - | 303 | |||||||||||||||||||
Home equity loans and lines | 582 | 207 | (234 | ) | 28 | 583 | |||||||||||||||||||
Consumer | 27 | 88 | (77 | ) | 26 | 64 | |||||||||||||||||||
Unallocated | 657 | 12 | N/A | N/A | 669 | ||||||||||||||||||||
$ | 9,772 | $ | 400 | $ | (1,421 | ) | $ | 174 | $ | 8,925 | |||||||||||||||
As previously discussed, the Company maintains a loan review system, which includes a continuous review of the loan portfolio by internal and external parties to aid in the early identification of potential impaired loans. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial loans, loans to state and political subdivisions and indirect lease financing loans by using either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. | |||||||||||||||||||||||||
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential mortgage loans for impairment disclosures, unless such loans are part of a larger relationship that is impaired, or are classified as a troubled debt restructuring. | |||||||||||||||||||||||||
An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of the majority of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. | |||||||||||||||||||||||||
For commercial loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. | |||||||||||||||||||||||||
For commercial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable agings or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. | |||||||||||||||||||||||||
From time to time, QNB may extend, restructure, or otherwise modify the terms of existing loans, on a case-by-case basis, to remain competitive and retain certain customers, as well as assist other customers that may be experiencing financial difficulties. A loan is considered to be a troubled debt restructuring (“TDR”) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates to less than the current market rate for new obligations with similar risk. Loans classified as TDRs are considered non-performing and are also designated as impaired. | |||||||||||||||||||||||||
The concessions made for TDRs involve lowering the monthly payments on loans through periods of interest only payments, a reduction in interest rate below a market rate or an extension of the term of the loan without a corresponding adjustment to the risk premium reflected in the interest rate, or a combination of these three methods. The restructurings rarely result in the forgiveness of principal or accrued interest. If the borrower has demonstrated performance under the previous terms and our underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. TDR loans that are in compliance with their modified terms and that yield a market rate may be removed from the TDR status after a period of performance. | |||||||||||||||||||||||||
Performing TDRs (not reported as non-accrual or past due 90 days or more and still accruing) totaled $1,897,000 and $1,960,000 as of December 31, 2014 and 2013, respectively. Non-performing TDRs totaled $3,690,000 and $6,601,000 as of December 31, 2014 and 2013, respectively. All TDRs are included in impaired loans. | |||||||||||||||||||||||||
The following table illustrates the specific reserve for loan losses allocated to loans modified as TDRs. These specific reserves are included in the allowance for loan losses for loans individually evaluated for impairment. There were charge-offs resulting from loans modified as TDRs of $909,000 and $551,000 during the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||
Recorded | Related | Recorded | Related | ||||||||||||||||||||||
investment | allowance | investment | allowance | ||||||||||||||||||||||
(balance) | (balance) | ||||||||||||||||||||||||
TDRs with no specific allowance recorded | $ | 4,588 | - | $ | 5,647 | - | |||||||||||||||||||
TDRs with an allowance recorded | 999 | $ | 813 | 2,914 | $ | 1,395 | |||||||||||||||||||
$ | 5,587 | $ | 813 | $ | 8,561 | $ | 1,395 | ||||||||||||||||||
The TDR concession made during the year ended December 31, 2014 involved an extension of a maturity date. As of December 31, 2014 and 2013, QNB had commitments of $1,729,000 and $1,603,000, respectively, to lend additional funds to customers with loans whose terms have been modified in troubled debt restructurings. | |||||||||||||||||||||||||
The following table presents loans, by loan class, modified as TDRs during the years ended December 31, 2014 and 2013. The pre-modification outstanding recorded investment disclosed represents the carrying amounts immediately prior to the modification of the loan. | |||||||||||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||||||||||
Number of | Pre- | Post- | Number of | Pre- | Post- | ||||||||||||||||||||
contracts | modification | modification | contracts | modification | modification | ||||||||||||||||||||
outstanding | outstanding | outstanding | outstanding | ||||||||||||||||||||||
recorded | recorded | recorded | recorded | ||||||||||||||||||||||
investment | investment | investment | investment | ||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | - | - | - | 1 | $ | 757 | $ | 757 | |||||||||||||||||
Construction | - | - | - | 2 | 1,319 | 1,319 | |||||||||||||||||||
Secured by commercial real estate | - | - | - | 1 | 1,822 | 1,805 | |||||||||||||||||||
Secured by residential real estate | - | - | - | 12 | 690 | 676 | |||||||||||||||||||
Retail: | |||||||||||||||||||||||||
Home equity loans and lines | 1 | $ | 25 | $ | 25 | - | - | - | |||||||||||||||||
1 | $ | 25 | $ | 25 | 16 | $ | 4,588 | $ | 4,557 | ||||||||||||||||
The following table presents loans modified as TDRs, included above, within the previous 12 months from December 31, 2014 and 2013, for which there was a payment default, past due 60 days or more, during the respective year end: | |||||||||||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||||||||||
TDRs Subsequently Defaulted | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||
contracts | investment | contracts | investment | ||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Secured by residential real estate | - | $ | - | 6 | $ | 361 | |||||||||||||||||||
- | $ | - | 6 | $ | 361 | ||||||||||||||||||||
The following tables present the balance in the allowance of loan losses disaggregated on the basis of the Company’s impairment method by class of loans receivable along with the balance of loans receivable by class, excluding unearned fees and costs, disaggregated on the basis of the Company’s impairment methodology: | |||||||||||||||||||||||||
Allowance for Loan Losses | Loans Receivable | ||||||||||||||||||||||||
31-Dec-14 | Balance | Balance | Balance | Balance | Balance | ||||||||||||||||||||
Balance | related to loans | individually | collectively | ||||||||||||||||||||||
related to loans | collectively | evaluated for | evaluated for | ||||||||||||||||||||||
individually | evaluated for | impairment | impairment | ||||||||||||||||||||||
evaluated for | impairment | ||||||||||||||||||||||||
impairment | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 1,892 | $ | 1,095 | $ | 797 | $ | 118,845 | $ | 7,115 | $ | 111,730 | |||||||||||||
Construction | 297 | - | 297 | 23,471 | 362 | 23,109 | |||||||||||||||||||
Secured by commercial real estate | 2,700 | - | 2,700 | 203,534 | 11,546 | 191,988 | |||||||||||||||||||
Secured by residential real estate | 1,630 | 91 | 1,539 | 53,077 | 1,567 | 51,510 | |||||||||||||||||||
State and political subdivisions | 221 | - | 221 | 44,104 | - | 44,104 | |||||||||||||||||||
Loans to depository institutions | - | - | - | - | - | - | |||||||||||||||||||
Indirect lease financing | 93 | - | 93 | 7,685 | 16 | 7,669 | |||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 312 | 4 | 308 | 37,147 | 341 | 36,806 | |||||||||||||||||||
Home equity loans and lines | 453 | 4 | 449 | 63,213 | 129 | 63,084 | |||||||||||||||||||
Consumer | 85 | - | 85 | 4,175 | 1 | 4,174 | |||||||||||||||||||
Unallocated | 318 | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||
$ | 8,001 | $ | 1,194 | $ | 6,489 | $ | 555,251 | $ | 21,077 | $ | 534,174 | ||||||||||||||
Allowance for Loan Losses | Loans Receivable | ||||||||||||||||||||||||
31-Dec-13 | Balance | Balance | Balance | Balance | Balance | Balance | |||||||||||||||||||
related to | related to | individually | collectively | ||||||||||||||||||||||
loans | loans | evaluated for | evaluated for | ||||||||||||||||||||||
individually | collectively | impairment | impairment | ||||||||||||||||||||||
evaluated for | evaluated for | ||||||||||||||||||||||||
impairment | impairment | ||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 2,044 | $ | 1,106 | $ | 938 | $ | 111,339 | $ | 10,304 | $ | 101,035 | |||||||||||||
Construction | 439 | 121 | 318 | 15,929 | 1,351 | 14,578 | |||||||||||||||||||
Secured by commercial real estate | 2,898 | 9 | 2,889 | 190,602 | 12,288 | 178,314 | |||||||||||||||||||
Secured by residential real estate | 1,632 | 639 | 993 | 47,672 | 2,833 | 44,839 | |||||||||||||||||||
State and political subdivisions | 186 | - | 186 | 33,773 | - | 33,773 | |||||||||||||||||||
Loans to depository institutions | 4 | - | 4 | 1,250 | - | 1,250 | |||||||||||||||||||
Indirect lease financing | 103 | 3 | 100 | 8,364 | 37 | 8,327 | |||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 303 | 63 | 240 | 29,730 | 522 | 29,208 | |||||||||||||||||||
Home equity loans and lines | 583 | 70 | 513 | 59,977 | 266 | 59,711 | |||||||||||||||||||
Consumer | 64 | 11 | 53 | 3,116 | 16 | 3,100 | |||||||||||||||||||
Unallocated | 669 | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||
$ | 8,925 | $ | 2,022 | $ | 6,234 | $ | 501,752 | $ | 27,617 | $ | 474,135 | ||||||||||||||
The following tables summarize additional information in regards to impaired loans by loan portfolio class as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
31-Dec-14 | Recorded investment (after charge-offs) | Unpaid principal balance | Related allowance | Average recorded investment | Interest income recognized | ||||||||||||||||||||
With no specific allowance recorded: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 5,894 | $ | 6,056 | $ | - | |||||||||||||||||||
Construction | 362 | 444 | - | ||||||||||||||||||||||
Secured by commercial real estate | 11,546 | 12,198 | - | ||||||||||||||||||||||
Secured by residential real estate | 903 | 1,427 | - | ||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||
Loans to depository institutions | - | - | - | ||||||||||||||||||||||
Indirect lease financing | 16 | 16 | - | ||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 225 | 250 | - | ||||||||||||||||||||||
Home equity loans and lines | 72 | 93 | - | ||||||||||||||||||||||
Consumer | 1 | 1 | - | ||||||||||||||||||||||
$ | 19,019 | $ | 20,485 | $ | - | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 1,221 | $ | 1,419 | $ | 1,095 | |||||||||||||||||||
Construction | - | - | - | ||||||||||||||||||||||
Secured by commercial real estate | - | - | - | ||||||||||||||||||||||
Secured by residential real estate | 664 | 748 | 91 | ||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||
Loans to depository institutions | - | - | - | ||||||||||||||||||||||
Indirect lease financing | - | - | - | ||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 116 | 116 | 4 | ||||||||||||||||||||||
Home equity loans and lines | 57 | 76 | 4 | ||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||
$ | 2,058 | $ | 2,359 | $ | 1,194 | ||||||||||||||||||||
Total: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 7,115 | $ | 7,475 | $ | 1,095 | $ | 9,305 | $ | 331 | |||||||||||||||
Construction | 362 | 444 | - | 1,050 | 2 | ||||||||||||||||||||
Secured by commercial real estate | 11,546 | 12,198 | - | 12,304 | 344 | ||||||||||||||||||||
Secured by residential real estate | 1,567 | 2,175 | 91 | 2,452 | - | ||||||||||||||||||||
State and political subdivisions | - | - | - | - | - | ||||||||||||||||||||
Loans to depository institutions | - | - | - | - | - | ||||||||||||||||||||
Indirect lease financing | 16 | 16 | - | 26 | 1 | ||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 341 | 366 | 4 | 460 | 5 | ||||||||||||||||||||
Home equity loans and lines | 129 | 169 | 4 | 169 | - | ||||||||||||||||||||
Consumer | 1 | 1 | - | 2 | - | ||||||||||||||||||||
$ | 21,077 | $ | 22,844 | $ | 1,194 | $ | 25,768 | $ | 683 | ||||||||||||||||
31-Dec-13 | Recorded investment (after charge-offs) | Unpaid principal balance | Related allowance | Average recorded investment | Interest income recognized | ||||||||||||||||||||
With no specific allowance recorded: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 8,222 | $ | 8,417 | $ | - | |||||||||||||||||||
Construction | 916 | 1,140 | - | ||||||||||||||||||||||
Secured by commercial real estate | 12,251 | 12,568 | - | ||||||||||||||||||||||
Secured by residential real estate | 728 | 839 | - | ||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||
Loans to depository institutions | - | - | - | ||||||||||||||||||||||
Indirect lease financing | 13 | 16 | - | ||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 250 | 274 | - | ||||||||||||||||||||||
Home equity loans and lines | 135 | 150 | - | ||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||
$ | 22,515 | $ | 23,404 | $ | - | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 2,082 | $ | 2,350 | $ | 1,106 | |||||||||||||||||||
Construction | 435 | 493 | 121 | ||||||||||||||||||||||
Secured by commercial real estate | 37 | 37 | 9 | ||||||||||||||||||||||
Secured by residential real estate | 2,105 | 2,248 | 639 | ||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||
Loans to depository institutions | - | - | - | ||||||||||||||||||||||
Indirect lease financing | 24 | 27 | 3 | ||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 272 | 284 | 63 | ||||||||||||||||||||||
Home equity loans and lines | 131 | 154 | 70 | ||||||||||||||||||||||
Consumer | 16 | 16 | 11 | ||||||||||||||||||||||
$ | 5,102 | $ | 5,609 | $ | 2,022 | ||||||||||||||||||||
Total: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 10,304 | $ | 10,767 | $ | 1,106 | $ | 6,732 | $ | 34 | |||||||||||||||
Construction | 1,351 | 1,633 | 121 | 3,179 | 46 | ||||||||||||||||||||
Secured by commercial real estate | 12,288 | 12,605 | 9 | 13,765 | 399 | ||||||||||||||||||||
Secured by residential real estate | 2,833 | 3,087 | 639 | 3,090 | 23 | ||||||||||||||||||||
State and political subdivisions | - | - | - | 1,636 | 53 | ||||||||||||||||||||
Loans to depository institutions | - | - | - | - | - | ||||||||||||||||||||
Indirect lease financing | 37 | 43 | 3 | 63 | - | ||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 522 | 558 | 63 | 495 | 5 | ||||||||||||||||||||
Home equity loans and lines | 266 | 304 | 70 | 293 | - | ||||||||||||||||||||
Consumer | 16 | 16 | 11 | 1 | - | ||||||||||||||||||||
$ | 27,617 | $ | 29,013 | $ | 2,022 | $ | 29,254 | $ | 560 | ||||||||||||||||
Note_6_Premises_and_Equipment
Note 6 - Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | Note 6 – Premises and Equipment | ||||||||
Premises and equipment, stated at cost less accumulated depreciation and amortization, are summarized below: | |||||||||
December 31, | 2014 | 2013 | |||||||
Land and buildings | $ | 11,138 | $ | 10,763 | |||||
Furniture and equipment | 12,576 | 12,022 | |||||||
Leasehold improvements | 2,313 | 2,304 | |||||||
Book value | 26,027 | 25,089 | |||||||
Accumulated depreciation and amortization | (16,325 | ) | (15,214 | ) | |||||
Net book value | $ | 9,702 | $ | 9,875 | |||||
Depreciation and amortization expense on premises and equipment amounted to $1,167,000 and $1,146,000 for the years ended December 31, 2014 and 2013, respectively. |
Note_7_Intangible_Assets_and_L
Note 7 - Intangible Assets and Loan Servicing | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Intangible Assets Disclosure [Text Block] | Note 7 – Intangible Assets and Loan Servicing | ||||||||
Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were $79,572,000 and $81,750,000 at December 31, 2014 and 2013, respectively. | |||||||||
The following table reflects the activity of mortgage servicing rights for the periods indicated: | |||||||||
Year ended December 31, | 2014 | 2013 | |||||||
Balance at beginning of year | $ | 519 | $ | 448 | |||||
Mortgage servicing rights capitalized | 48 | 126 | |||||||
Mortgage servicing rights amortized | (71 | ) | (92 | ) | |||||
Fair market value adjustments | 8 | 37 | |||||||
Balance at end of year | $ | 504 | $ | 519 | |||||
The balance of these mortgage servicing rights are included in other assets at December 31, 2014 and 2013 and the fair value of these rights was $601,000 and $643,000, respectively. The fair value of servicing rights was determined using discount rates ranging from 10% to 12% for both 2014 and 2013. | |||||||||
The annual estimated amortization expense of intangible assets for each of the five succeeding fiscal years is as follows: | |||||||||
2015 | $ | 92 | |||||||
2016 | 76 | ||||||||
2017 | 63 | ||||||||
2018 | 52 | ||||||||
2019 | 43 | ||||||||
On November 26, 2014, QNB transferred its former internet domain name to a third party and recorded a gain of $1,000,000, as disclosed in a Form 8-K filing dated December 2, 2014. As a result of the purchase of an additional domain name, QNB recorded the purchase price of $8,000 as an intangible asset in other assets in 2014. This asset has no amortization expense as it has an indefinite life. |
Note_8_Time_Deposits
Note 8 - Time Deposits | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure Text Block [Abstract] | |||||
Deposit Liabilities Disclosures [Text Block] | Note 8 - Time Deposits | ||||
The aggregate amount of time deposits, including deposits in denominations of $100,000 or more, was $243,247,000 and $239,545,000 at December 31, 2014 and 2013, respectively. Time deposits that meet or exceed the FDIC insurance limit of $250,000 at December 31, 2014 and 2013 were $34,118,000 and $29,765,000, respectively. | |||||
At December 31, 2014, the scheduled maturities of time deposits were as follows: | |||||
2015 | $ | 115,347 | |||
2016 | 49,873 | ||||
2017 | 34,615 | ||||
2018 | 23,019 | ||||
2019 | 20,393 | ||||
Thereafter | - | ||||
Total time deposits | $ | 243,247 | |||
Note_9_ShortTerm_Borrowings
Note 9 - Short-Term Borrowings | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Short-term Debt [Text Block] | Note 9 - Short-Term Borrowings | ||||||||
December 31, | Securities sold under agreements to repurchase (a) | Other short-term | |||||||
borrowings(b) | |||||||||
2014 | |||||||||
Balance | $ | 35,189 | $ | - | |||||
Maximum indebtedness at any month end | 35,189 | - | |||||||
Daily average indebtedness outstanding | 29,574 | 2,042 | |||||||
Average rate paid for the year | 0.37 | % | 0.3 | % | |||||
Average rate on period-end borrowings | 0.37 | - | |||||||
2013 | |||||||||
Balance | $ | 35,156 | $ | - | |||||
Maximum indebtedness at any month end | 35,156 | - | |||||||
Daily average indebtedness outstanding | 29,684 | 59 | |||||||
Average rate paid for the year | 0.37 | % | 0.21 | % | |||||
Average rate on period-end borrowings | 0.37 | - | |||||||
(a) | Securities sold under agreements to repurchase mature overnight. The repurchase agreements were collateralized by U.S. Government mortgage-backed securities and CMOs with an amortized cost of $47,501,000 and $54,983,000 and a fair value of $47,719,000 and $54,441,000 at December 31, 2014 and 2013, respectively. These securities are held in safekeeping at the Federal Reserve Bank of Philadelphia. | ||||||||
(b) | Other short-term borrowings include Federal funds purchased and overnight borrowings from the FHLB. | ||||||||
The Bank has three unsecured Federal funds lines granted by correspondent banks totaling $31,000,000. Federal funds purchased under these lines were $0 at both December 31, 2014 and 2013. |
Note_10_LongTerm_Debt
Note 10 - Long-Term Debt | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||||
Long-term Debt [Text Block] | Note 10 - Long-Term Debt | ||||||||||||||||
Under terms of its agreement with the FHLB, QNB maintains otherwise unencumbered qualifying assets (principally 1-4 family residential mortgage loans and U.S. Government and agency notes, bonds, and mortgage-backed securities) in the amount of at least as much as its advances from the FHLB. QNB’s FHLB stock of $635,000 and $1,752,000 at December 31, 2014 and 2013, respectively, is also pledged to secure these advances. | |||||||||||||||||
QNB has a maximum borrowing capacity with the FHLB of approximately $227,142,000. QNB had no borrowings outstanding with the FHLB at December 31, 2014 or December 31, 2013. | |||||||||||||||||
Repurchase agreements are treated as financings with the obligations to repurchase securities sold reflected as a liability in the balance sheet. The dollar amount of securities underlying the agreements remains recorded as an asset, although the securities underlying the agreements are delivered to the broker who arranged the transactions. The broker/dealer who participated with the Company in these agreements is PNC Bank. QNB repaid this borrowing at maturity in 2014. | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Maturity date | Balance | Weighted | Balance | Weighted | |||||||||||||
average rate | average rate | ||||||||||||||||
2014 | $ | - | - | $ | 5,000 | 1 | 4.77 | % | |||||||||
1 $2,500,000 callable beginning 4/17/10, $2,500,000 callable beginning 4/17/12 |
Note_11_Income_Taxes
Note 11 - Income Taxes | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income Tax Disclosure [Text Block] | Note 11 – Income Taxes | ||||||||||||||||
The components of the provision for income taxes are as follows: | |||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||
Current Federal income taxes | $ | 2,276 | $ | 2,134 | |||||||||||||
Deferred Federal income taxes | 368 | 212 | |||||||||||||||
Net provision | $ | 2,644 | $ | 2,346 | |||||||||||||
At December 31, 2014 and 2013, the tax effects of temporary differences that represent the significant portion of deferred tax assets and liabilities are as follows: | |||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||
Deferred tax assets | |||||||||||||||||
Allowance for loan losses | $ | 2,720 | $ | 3,035 | |||||||||||||
Net unrealized holding losses on investment securities available-for-sale | - | 1,456 | |||||||||||||||
Impaired securities | 477 | 546 | |||||||||||||||
Non-credit OTTI on investment securities available-for-sale | 204 | 302 | |||||||||||||||
Non-accrual interest income | 446 | 569 | |||||||||||||||
OREO expenses | 44 | 41 | |||||||||||||||
Deferred rent | 64 | 55 | |||||||||||||||
Deferred revenue | 27 | 33 | |||||||||||||||
Incurred but not reported (IBNR) medical expense | 39 | 24 | |||||||||||||||
Other | 48 | 13 | |||||||||||||||
Total deferred tax assets | 4,069 | 6,074 | |||||||||||||||
Deferred tax liabilities | |||||||||||||||||
Depreciation | 90 | 231 | |||||||||||||||
Mortgage servicing rights | 171 | 176 | |||||||||||||||
Net unrealized holding gains on investment securities available-for-sale | 671 | - | |||||||||||||||
Prepaid expenses | 188 | 149 | |||||||||||||||
Other | 24 | - | |||||||||||||||
Total deferred tax liabilities | 1,144 | 556 | |||||||||||||||
Net deferred tax asset | $ | 2,925 | $ | 5,518 | |||||||||||||
The ability to realize deferred tax assets is dependent upon a variety of factors, including the generation of future taxable income, the existence of taxes paid and recoverable, the reversal of deferred tax liabilities and tax planning strategies. Based upon these and other factors, management believes it is more likely than not that QNB will realize the benefits of the above deferred tax assets. The net deferred tax asset is included in other assets on the consolidated balance sheet. | |||||||||||||||||
A reconciliation of the tax provision on income before taxes computed at the statutory rate of 34% and the actual tax provision was as follows: | |||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||
Dollar | % | Dollar | % | ||||||||||||||
Provision at statutory rate | $ | 3,958 | 34 | % | $ | 3,651 | 34 | % | |||||||||
Tax-exempt interest and dividend income | (1,212 | ) | (10.4 | ) | (1,249 | ) | (11.7 | ) | |||||||||
Bank-owned life insurance | (106 | ) | (0.9 | ) | (109 | ) | (1.0 | ) | |||||||||
Life insurance proceeds | (54 | ) | (0.5 | ) | - | - | |||||||||||
Stock-based compensation expense | 28 | 0.2 | 24 | 0.2 | |||||||||||||
Other | 30 | 0.3 | 29 | 0.3 | |||||||||||||
Total provision | $ | 2,644 | 22.7 | % | $ | 2,346 | 21.8 | % | |||||||||
Note_12_Employee_Benefit_Plans
Note 12 - Employee Benefit Plans | 12 Months Ended | ||
Dec. 31, 2014 | |||
Disclosure Text Block Supplement [Abstract] | |||
Compensation and Employee Benefit Plans [Text Block] | Note 12 - Employee Benefit Plans | ||
The QNB Bank Retirement Savings Plan provides for elective employee contributions up to the maximum allowed by the IRS and a matching company contribution limited to three percent. In addition, the plan provides for safe harbor non-elective contributions of five percent of total compensation by QNB. QNB contributed a matching contribution of approximately $224,000 and $203,000 for the years ended December 31, 2014 and 2013, respectively, and a safe harbor contribution of approximately $421,000 for 2014 and $388,000 for 2013. | |||
QNB’s Employee Stock Purchase Plan (the Plan) offer eligible employees an opportunity to purchase shares of QNB Corp. common stock at a 10% discount from the lesser of fair market value on the first or last day of each offering period (as defined by the Plan). At the 2011 Annual Meeting, shareholders approved the 2011 Employee Stock Purchase Plan (the 2011 Plan), which authorizes the issuance of 30,000 shares. As of December 31, 2014, 12,790 shares were issued under the 2011 Plan. The 2011 Plan expires May 31, 2016. | |||
Shares issued pursuant to the Plan were as follows: | |||
Year ended December 31, | 2014 | 2013 | |
Shares | 3,239 | 3,692 | |
Price per share | $22.32 and $23.40 | $20.88 and $21.74 | |
Note_13_Stock_Option_Plan
Note 13 - Stock Option Plan | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 13 - Stock Option Plan | ||||||||||||||||||||
QNB has stock option plans (the Plans) administered by a committee which consists of three or more members of QNB’s Board of Directors. The Plans provide for the granting of either (i) Non-Qualified Stock Options (NQSOs) or (ii) Incentive Stock Options (ISOs). The exercise price of an option, as defined by the Plans, is the fair market value of QNB’s common stock at the date of grant. The Plans provide for the exercise either in cash or in securities of the Company or in any combination thereof. | |||||||||||||||||||||
The 1998 Plan authorizes the issuance of 220,500 shares. The time period by which any option is exercisable under the Plan is determined by the Committee but shall not commence before the expiration of six months after the date of grant or continue beyond the expiration of ten years after the date the option is awarded. The granted options vest after a three-year period. As of December 31, 2014, there were 225,058 options granted, 48,194 options forfeited, 164,814 options exercised and 12,050 options outstanding under this Plan. The 1998 Plan expired March 10, 2008. | |||||||||||||||||||||
The 2005 Plan authorizes the issuance of 200,000 shares. The terms of the 2005 Plan are identical to the 1998 Plan except the options expire five years after the grant date. As of December 31, 2014, there were 163,200 options granted, 54,625 options forfeited, 32,250 options exercised and 76,325 options outstanding under this Plan. The 2005 Plan expires March 15, 2015. | |||||||||||||||||||||
As of December 31, 2014, there was approximately $65,000 of unrecognized compensation cost related to unvested stock option awards granted. That cost is expected to be recognized over the next 25 months. | |||||||||||||||||||||
Stock option activity during 2014 and 2013 was as follows: | |||||||||||||||||||||
Number | Weighted | Weighted average remaining contractual term | Aggregate | ||||||||||||||||||
of options | average | (in years) | intrinsic value | ||||||||||||||||||
exercise price | |||||||||||||||||||||
Outstanding at December 31, 2012 | 128,225 | $ | 22.72 | ||||||||||||||||||
Exercised | (29,825 | ) | 20.23 | ||||||||||||||||||
Forfeited | (2,600 | ) | 19.79 | ||||||||||||||||||
Granted | 20,000 | 23.2 | |||||||||||||||||||
Outstanding at December 31, 2013 | 115,800 | 23.51 | |||||||||||||||||||
Exercised | (20,050 | ) | 17.82 | ||||||||||||||||||
Forfeited | (27,375 | ) | 29.66 | ||||||||||||||||||
Granted | 20,000 | 25.16 | |||||||||||||||||||
Outstanding at December 31, 2014 | 88,375 | $ | 23.27 | 1.97 | $ | 509 | |||||||||||||||
Exercisable at December 31, 2014 | 38,700 | $ | 23.29 | 0.54 | $ | 248 | |||||||||||||||
As of December 31, 2014, outstanding stock options consist of the following: | |||||||||||||||||||||
Options outstanding | Exercise price | Remaining life | Options exercisable | Exercise price | |||||||||||||||||
(in years) | |||||||||||||||||||||
9,600 | $ | 17.25 | 0.13 | 9,600 | $ | 17.25 | |||||||||||||||
2,000 | 19.76 | 0.69 | 2,000 | 19.76 | |||||||||||||||||
12,550 | 20 | 1.07 | 12,550 | 20 | |||||||||||||||||
16,175 | 21.35 | 2.07 | - | - | |||||||||||||||||
2,500 | 22.11 | 1.66 | 2,500 | 22.11 | |||||||||||||||||
16,850 | 23.2 | 3.06 | - | - | |||||||||||||||||
16,650 | 25.16 | 4.08 | - | - | |||||||||||||||||
12,050 | 32.35 | 0.05 | 12,050 | 32.35 | |||||||||||||||||
Outstanding at December 31, 2014 | 88,375 | $ | 23.27 | 1.97 | 38,700 | $ | 23.29 | ||||||||||||||
The tax benefits and intrinsic value related to total stock options exercised during 2014 and 2013 are as follows: | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Tax benefits related to stock options exercised | $ | 29 | $ | 2 | |||||||||||||||||
Intrinsic value of stock options exercised | 161 | 91 | |||||||||||||||||||
Note_14_Related_Party_Transact
Note 14 - Related Party Transactions | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Related Party Transactions [Abstract] | |||||
Related Party Transactions Disclosure [Text Block] | Note 14 - Related Party Transactions | ||||
QNB has had, and may be expected to have in the future, banking transactions in the ordinary course of business with is executive officers, directors, principal stockholders, their immediate families and affiliated companies. The following table presents activity and amounts due from directors, principal officers, and their related interests. All of these transactions were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons. These transactions did not involve more than normal risk of collectability or present any other unfavorable features. | |||||
Balance, December 31, 2013 | $ | 2,817 | |||
New Loans | 10,360 | ||||
New Loans - New Director Appointed | 8,110 | ||||
Retired Loans - Executive Resigination | (45 | ) | |||
Repayments | (9,025 | ) | |||
Balance, December 31, 2014 | $ | 12,217 | |||
Note_15_Commitments_and_Contin
Note 15 - Commitments and Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Commitments and Contingencies Disclosure [Text Block] | Note 15 – Commitments and Contingencies | ||||||||
Financial instruments with off-balance sheet risk: | |||||||||
In the normal course of business there are various legal proceedings, commitments, and contingent liabilities which are not reflected in the financial statements. Management does not anticipate any material losses as a result of these transactions and activities. They include, among other things, commitments to extend credit and standby letters of credit. The maximum exposure to credit loss, which represents the possibility of sustaining a loss due to the failure of the other parties to a financial instrument to perform according to the terms of the contract, is represented by the contractual amount of these instruments. QNB uses the same lending standards and policies in making credit commitments as it does for on-balance sheet instruments. The activity is controlled through credit approvals, control limits, and monitoring procedures. | |||||||||
A summary of the Bank's financial instrument commitments is as follows: | |||||||||
December 31, | 2014 | 2013 | |||||||
Commitments to extend credit and unused lines of credit | $ | 203,496 | $ | 186,137 | |||||
Standby letters of credit | 6,276 | 5,311 | |||||||
Total financial instrument commitments | $ | 209,772 | $ | 191,448 | |||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. QNB evaluates each customer’s creditworthiness on a case-by-case basis. | |||||||||
Standby letters of credit are conditional commitments issued by the Bank to guarantee the financial or performance obligation of a customer to a third party. QNB’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making conditional obligations as it does for on-balance sheet instruments. These standby letters of credit expire within two years. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. The Bank requires collateral and personal guarantees supporting these letters of credit as deemed necessary. The amount of collateral obtained for letters of credit and commitments to extend credit is based on management’s credit evaluation of the customer. Collateral varies, but may include real estate, accounts receivable, marketable securities, pledged deposits, inventory or equipment. Management believes that the proceeds obtained through a liquidation of such collateral and the enforcement of personal guarantees would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. The amount of the liability as of December 31, 2014 and 2013 for guarantees under standby letters of credit issued is not material. | |||||||||
Other commitments: | |||||||||
QNB has committed to various operating leases for several of their branch and office facilities. Some of these leases include renewal options as well as specific provisions relating to rent increases. The minimum annual rental commitments under these leases outstanding at December 31, 2014 are as follows: | |||||||||
Minimum lease payments | |||||||||
2015 | $ | 477 | |||||||
2016 | 477 | ||||||||
2017 | 423 | ||||||||
2018 | 368 | ||||||||
2019 | 341 | ||||||||
Thereafter | 3,276 | ||||||||
Some of the leases contain renewal options to extend the initial terms of the lease for periods ranging from one to five years and certain leases allow for multiple extensions. With the exception of the renewals for a land lease related to a permanent branch site, the commitment for such renewals is not included above if they have not been exercised as of December 31, 2014. Rent expense under leases, which includes common area maintenance costs not included in the minimum lease payments above, for the years ended December 31, 2014 and 2013, was $553,000 and $560,000, respectively. |
Note_16_Accumulated_Other_Comp
Note 16 - Accumulated Other Comprehensive Income | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Disclosure Text Block [Abstract] | ||||||||||
Comprehensive Income (Loss) Note [Text Block] | Note 16 – Accumulated Other Comprehensive Income | |||||||||
The following shows the components of accumulated other comprehensive income during the periods ended December 31, 2014 and 2013: | ||||||||||
Year ended December 31, | 2014 | 2013 | ||||||||
Unrealized net holding gains (losses) on available-for-sale securities | $ | 1,975 | $ | (4,281 | ) | |||||
Unrealized losses on available-for-sale securities for which a portion of an other-than-temporary impairment loss has been recognized in earnings | (600 | ) | (889 | ) | ||||||
Accumulated other comprehensive income (loss) | 1,375 | (5,170 | ) | |||||||
Tax effect | (468 | ) | 1,758 | |||||||
Accumulated other comprehensive income (loss), net of tax | $ | 907 | $ | (3,412 | ) | |||||
The following table presents amounts reclassified out of accumulated other comprehensive income for the years ended December 31, 2014 and 2013: | ||||||||||
Amount reclassified from | ||||||||||
accumulated other | ||||||||||
comprehensive income | ||||||||||
Details about accumulated other comprehensive income | 2014 | 2013 | Affected line item in the statement of income | |||||||
Unrealized net holding gains on available-for-sale securities | $ | 1,112 | $ | 867 | Net gain on sale of investment securities | |||||
Other-than-temporary impairment losses on investment securities | - | (43 | ) | Net other-than-temporary impairment losses on investment securities | ||||||
1,112 | 824 | |||||||||
Tax effect | (378 | ) | (280 | ) | Provision for income taxes | |||||
Total reclass out of accumulated other comprehensive income, net of tax | $ | 734 | $ | 544 | Net of tax | |||||
Note_17_Fair_Value_Measurement
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Disclosures [Text Block] | Note 17 - Fair Value Measurements and Fair Values of Financial Instruments | ||||||||||||||||||||
Financial Accounting Standards Board (“FASB”) ASC 820, Fair Value Measurements and Disclosures, defines fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (fair values are not adjusted for transaction costs). ASC 820 also establishes a framework (fair value hierarchy) for measuring fair value under GAAP, and expands disclosures about fair value measurements. | |||||||||||||||||||||
ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: | |||||||||||||||||||||
Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||||||||||||||||||
Level 2: | Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. | ||||||||||||||||||||
Level 3: | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). | ||||||||||||||||||||
An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||||
The measurement of fair value should be consistent with one of the following valuation techniques: market approach, income approach, and/or cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (including a business). For example, valuation techniques consistent with the market approach often use market multiples derived from a set of comparables. Multiples might lie in ranges with a different multiple for each comparable. The selection of where within the range the appropriate multiple falls requires judgment, considering factors specific to the measurement (qualitative and quantitative). Valuation techniques consistent with the market approach include matrix pricing. Matrix pricing is a mathematical technique used principally to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the security’s relationship to other benchmark quoted securities. | |||||||||||||||||||||
For financial assets measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy used were as follows: | |||||||||||||||||||||
31-Dec-14 | Quoted prices in active markets for identical assets (Level 1) | Significant other observable input (Level 2) | Significant unobservable inputs (Level 3) | Balance at end of period | |||||||||||||||||
Recurring fair value measurements | |||||||||||||||||||||
Trading Securities | |||||||||||||||||||||
State and municipal | - | $ | 4,207 | - | $ | 4,207 | |||||||||||||||
Securities available-for-sale | |||||||||||||||||||||
U.S. Government agency | - | 62,665 | - | 62,665 | |||||||||||||||||
State and municipal | - | 72,569 | - | 72,569 | |||||||||||||||||
U.S. Government agencies and sponsored enterprises (GSEs): | |||||||||||||||||||||
Mortgage-backed | - | 136,192 | - | 136,192 | |||||||||||||||||
Collateralized mortgage obligations (CMOs) | - | 87,662 | - | 87,662 | |||||||||||||||||
Pooled trust preferred | - | - | $ | 2,439 | 2,439 | ||||||||||||||||
Corporate debt | - | 6,037 | - | 6,037 | |||||||||||||||||
Equity | $ | 7,655 | - | - | 7,655 | ||||||||||||||||
Total securities available-for-sale | $ | 7,655 | $ | 365,125 | $ | 2,439 | $ | 375,219 | |||||||||||||
Total recurring fair value measurements | $ | 7,655 | $ | 369,332 | $ | 2,439 | $ | 379,426 | |||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||||||
Impaired loans | $ | - | $ | - | $ | 3,715 | $ | 3,715 | |||||||||||||
Mortgage servicing rights | - | - | 112 | 112 | |||||||||||||||||
Total nonrecurring fair value measurements | $ | - | $ | - | $ | 3,827 | $ | 3,827 | |||||||||||||
31-Dec-13 | Quoted prices in active markets for identical assets (Level 1) | Significant other observable input (Level 2) | Significant unobservable inputs (Level 3) | Balance at end of period | |||||||||||||||||
Recurring fair value measurements | |||||||||||||||||||||
Securities available-for-sale | |||||||||||||||||||||
U.S. Government agency | - | $ | 71,639 | - | $ | 71,639 | |||||||||||||||
State and municipal | - | 87,199 | - | 87,199 | |||||||||||||||||
U.S. Government agencies and sponsored enterprises (GSEs): | |||||||||||||||||||||
Mortgage-backed | - | 139,723 | - | 139,723 | |||||||||||||||||
Collateralized mortgage obligations (CMOs) | - | 75,394 | - | 75,394 | |||||||||||||||||
Pooled trust preferred | - | - | $ | 2,069 | 2,069 | ||||||||||||||||
Corporate debt | - | 6,021 | - | 6,021 | |||||||||||||||||
Equity | $ | 6,625 | - | - | 6,625 | ||||||||||||||||
Total securities available-for-sale | $ | 6,625 | $ | 379,976 | $ | 2,069 | $ | 388,670 | |||||||||||||
Total recurring fair value measurements | $ | 6,625 | $ | 379,976 | $ | 2,069 | $ | 388,670 | |||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||||||
Impaired loans | $ | - | $ | - | $ | 3,107 | $ | 3,107 | |||||||||||||
Mortgage servicing rights | - | - | 192 | 192 | |||||||||||||||||
Total nonrecurring fair value measurements | $ | - | $ | - | $ | 3,299 | $ | 3,299 | |||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which QNB has utilized Level 3 inputs to determine fair value: | |||||||||||||||||||||
Quantitative information about Level 3 fair value measurements | |||||||||||||||||||||
Fair value | Valuation techniques | Unobservable input | Value or range of values | ||||||||||||||||||
December 31, 2014 - Impaired loans | $ | 953 | Appraisal of collateral (1) | Appraisal adjustments (2) | -20% to -100 | % | |||||||||||||||
Liquidation expenses (3) | -10 | % | |||||||||||||||||||
December 31, 2014 - Impaired loans | $ | 112 | Discounted cash flow (4) | Discount rate | 6.375 | % | |||||||||||||||
December 31, 2014 - Impaired loans | $ | 2,650 | Agreement of sale (5) | ||||||||||||||||||
December 31, 2014 - Mortgage servicing rights | $ | 112 | Discounted cash flow | Remaining term | 2 - 28 yrs | ||||||||||||||||
Discount rate | 10% to 12 | % | |||||||||||||||||||
December 31, 2013 - Impaired loans | $ | 3,107 | Appraisal of collateral (1) | Appraisal adjustments (2) | -10% to -30 | % | |||||||||||||||
Liquidation expenses (3) | 0%-10 | % | |||||||||||||||||||
December 31, 2013 - Mortgage servicing rights | $ | 192 | Discounted cash flow | Remaining term | 3 - 29 yrs | ||||||||||||||||
Discount rate | 10% to 12 | % | |||||||||||||||||||
-1 | Fair value is primarily determined through appraisals of the underlying collateral by independent parties, which generally includes various level 3 inputs which are not always identifiable. | ||||||||||||||||||||
-2 | Appraisals may be adjusted by management for qualitative factors such as economic conditions and the age of the appraisal. The range is presented as a percent of the initial appraised value. | ||||||||||||||||||||
-3 | Appraisals and pending agreements of sale are adjusted by management for estimated liquidation expenses. The range is presented as a percent of the initial appraised value. | ||||||||||||||||||||
-4 | Fair value is determined using the cash flow of the borrower and the effective interest rate of the original note. | ||||||||||||||||||||
-5 | Fair value is determined by the net amount due. | ||||||||||||||||||||
The following table presents additional information about the securities available-for-sale measured at fair value on a recurring basis and for which QNB utilized significant unobservable inputs (Level 3 inputs) to determine fair value for the year ended December 31: | |||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||
significant unobservable inputs | |||||||||||||||||||||
(Level 3) | |||||||||||||||||||||
Securities available-for-sale | 2014 | 2013 | |||||||||||||||||||
Balance, beginning of year | $ | 2,069 | $ | 1,962 | |||||||||||||||||
Settlements | - | - | |||||||||||||||||||
Total gains or losses (realized/unrealized) | |||||||||||||||||||||
Included in earnings | - | - | |||||||||||||||||||
Included in other comprehensive income | 370 | 107 | |||||||||||||||||||
Transfers in and/or out of Level 3 | - | - | |||||||||||||||||||
Balance, end of year | $ | 2,439 | $ | 2,069 | |||||||||||||||||
There were no transfers in and out of Level 1 and Level 2 fair value measurements during the years ended December 31, 2014 and 2013. There were also no transfers in or out of level 3 for the same periods. There were no losses included in earnings attributable to the change in unrealized gains or losses relating to the available-for-sale securities above with fair value measurements utilizing significant unobservable inputs for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
The Level 3 securities consist of six collateralized debt obligation securities, PreTSL securities, which are backed by trust preferred securities issued by banks, thrifts, and insurance companies. As discussed in Note 4, despite the fact that there were some trades during 2014, the market for these securities at December 31, 2014 was not active and markets for similar securities also are not active. The inactivity was evidenced first by a significant widening of the bid-ask spread in the brokered markets in which PreTSLs trade and then by a significant decrease in the volume of trades relative to historical levels. The new issue market is also inactive and there are currently very few market participants who are willing and or able to transact for these securities. | |||||||||||||||||||||
Given conditions in the debt markets today and the absence of observable transactions in the secondary and new issue markets, we determined: | |||||||||||||||||||||
● | The few observable transactions and market quotations that are available are not reliable for purposes of determining fair value at December 31, 2014; | ||||||||||||||||||||
● | An income valuation approach technique (present value technique) that maximizes the use of relevant observable inputs and minimizes the use of unobservable inputs will be equally or more representative of fair value than the market approach valuation technique used at prior measurement dates; and | ||||||||||||||||||||
● | PreTSLs will be classified within Level 3 of the fair value hierarchy because significant adjustments are required to determine fair value at the measurement date. | ||||||||||||||||||||
The Bank is aware of several factors indicating that recent transactions of PreTSL securities are not orderly including an increased spread between bid/ask prices, lower sales transaction volumes for these types of securities, and a lack of new issuances. As a result, the Bank engaged an independent third party to value the securities using a discounted cash flow analysis. The estimated cash flows are based on specific assumptions about defaults, deferrals and prepayments of the trust preferred securities underlying each PreTSL. The resulting collateral cash flows are allocated to the bond waterfall using the INTEXcalc valuation model. Default rates are calculated based upon a comparison of key financial ratios of active individual issuers without a short-term probability of default compared to all FDIC insured banks. The base loss severity assumption and long-term loss severity assumptions are modeled at 95%. The severity factor for near-term default is vectored to reflect the relative expected performance of the institutions modeled to default, with lower forecasted severities used for the higher quality institutions. Prepayments are modeled to take into account the disruption in the asset-backed securities marketplace and the lack of new pooled trust preferred issuances. For those institutions rated below investment grade the holding companies’ approximate cost of long-term funding given their rating and marketplace interest rate was estimated. The following assumption was made; any holding company that could refinance for a cost savings of more than 2% will refinance and will do so as soon as possible, or July 1, 2015. Finally, for issuers not impacted by the Tier 1 regulatory capital legislation enacted by the Dodd-Frank Act, the issuers that have shown a recent history of prepayment of both floating rate and fixed rate issues were identified and it was assumed these issuers will prepay as soon as possible. | |||||||||||||||||||||
The internal rate of return is the pre-tax yield used to discount the best estimate of future cash flows after credit losses. The cash flows have been discounted using estimated market discount rates of 3-month LIBOR plus spreads ranging from 3.78% to 8.54%. The determination of appropriate market discount rates involved the consideration of the following: | |||||||||||||||||||||
● | the time value of money | ||||||||||||||||||||
● | the price for bearing uncertainty in cash flows | ||||||||||||||||||||
● | other factors that would be considered by market participants | ||||||||||||||||||||
The analysis of discount rates involved the review of corporate bond spreads for banks, U.S. Treasury yields, credit default swap rates for financial companies (utilized as a proxy for credit), the swap/LIBOR yield curve and the characteristics of the individual securities being valued. For a further discussion of PreTSL valuation, see Note 4, Investment Securities. | |||||||||||||||||||||
The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of QNB’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between QNB’s disclosures and those of other companies may not be meaningful. | |||||||||||||||||||||
The following methods and assumptions were used to estimate the fair values of each major classification of financial instrument and non-financial asset at December 31, 2014 and 2013: | |||||||||||||||||||||
Cash and cash equivalents, accrued interest receivable and accrued interest payable (carried at cost): The carrying amounts reported in the balance sheet approximate those assets’ fair value. | |||||||||||||||||||||
Investment securities: trading (carried at fair value), available-for-sale (carried at fair value) and held-to-maturity (carried at amortized cost): The fair value of securities are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. Level 2 debt securities are valued by a third-party pricing service commonly used in the banking industry. Level 2 fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution date, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. For certain securities which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments are generally based on available market evidence (Level 3). In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) were used to support fair values of certain Level 3 investments. | |||||||||||||||||||||
Restricted investment in bank stocks (carried at cost): The fair value of stock in Atlantic Community Bankers Bank and the Federal Home Loan Bank is the carrying amount, based on redemption provisions, and considers the limited marketability of such securities. | |||||||||||||||||||||
Loans Held for Sale (carried at lower of cost or fair value): The fair value of loans held for sale is determined, when possible, using quoted secondary market prices. If no such quoted prices exist, the fair value of a loan is determined using quoted prices for a similar loan or loans, adjusted for the specific attributes of that loan. | |||||||||||||||||||||
Loans Receivable (carried at cost): The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. | |||||||||||||||||||||
Impaired Loans (generally carried at fair value): Impaired loans are loans, in which the Company has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Included in the fair value of impaired loans at December 31, 2014 and 2013 are $2,851,000 and $27,000, respectively, of loans that had no specific reserves required at year end; however, were partially charged-off at year end. | |||||||||||||||||||||
Mortgage Servicing Rights (carried at lower of cost or fair value): The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated net servicing income. The mortgage servicing rights are stratified into tranches based on predominant characteristics, such as interest rate, loan type and investor type. The valuation incorporates assumptions that market participants would use in estimating future net servicing income. | |||||||||||||||||||||
Foreclosed assets (other real estate owned and repossessed assets): Foreclosed assets are the only non-financial assets valued on a non-recurring basis which are held by the Company at fair value, less cost to sell. At foreclosure or repossession, if the fair value, less estimated costs to sell, of the collateral acquired (real estate, vehicles, equipment) is less than the Company’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses. Additionally, valuations are periodically performed by management and any subsequent reduction in value is recognized by a charge to income. The fair value of foreclosed assets held-for-sale is estimated using Level 3 inputs based on observable market data. | |||||||||||||||||||||
Deposit liabilities (carried at cost): The fair value of deposits with no stated maturity (e.g. demand deposits, interest-bearing demand accounts, money market accounts and savings accounts) are by definition, equal to the amount payable on demand at the reporting date (i.e. their carrying amounts). This approach to estimating fair value excludes the significant benefit that results from the low-cost funding provided by such deposit liabilities, as compared to alternative sources of funding. Deposits with a stated maturity (time deposits) have been valued using the present value of cash flows discounted at rates approximating the current market for similar deposits. | |||||||||||||||||||||
Short-term borrowings (carried at cost): The carrying amount of short-term borrowings approximates their fair values. | |||||||||||||||||||||
Long-term debt (carried at cost): The fair value of securities sold under agreements to repurchase is estimated using discounted cash flow analysis, based on quoted prices for new long-term debt with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a fair value that is deemed to represent the transfer price if the liability were assumed by a third party. | |||||||||||||||||||||
Off-balance-sheet instruments (disclosed at cost): The fair value for the Bank’s off-balance sheet instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. | |||||||||||||||||||||
Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of the respective period ends and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year end. | |||||||||||||||||||||
The estimated fair values and carrying amounts of the Company’s financial and off-balance sheet instruments are summarized as follows: | |||||||||||||||||||||
Fair value measurements | |||||||||||||||||||||
31-Dec-14 | Carrying | Fair value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||
amount | (Level 2) | (Level 3) | |||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 18,245 | $ | 18,245 | $ | 18,245 | - | - | |||||||||||||
Investment securities: | |||||||||||||||||||||
Trading | 4,207 | 4,207 | - | $ | 4,207 | - | |||||||||||||||
Available-for-sale | 375,219 | 375,219 | 7,655 | 365,125 | $ | 2,439 | |||||||||||||||
Held-to-maturity | 146 | 156 | - | 156 | - | ||||||||||||||||
Restricted investment in bank stocks | 647 | 647 | - | 647 | - | ||||||||||||||||
Loans held-for-sale | 380 | 394 | - | 394 | - | ||||||||||||||||
Net loans | 547,281 | 544,126 | - | - | 544,126 | ||||||||||||||||
Mortgage servicing rights | 504 | 601 | - | - | 601 | ||||||||||||||||
Accrued interest receivable | 2,568 | 2,568 | - | 2,568 | - | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits with no stated maturities | $ | 608,345 | $ | 608,345 | $ | 608,345 | - | $ | - | ||||||||||||
Deposits with stated maturities | 243,247 | 244,152 | - | $ | 244,152 | - | |||||||||||||||
Short-term borrowings | 35,189 | 35,189 | 35,189 | - | - | ||||||||||||||||
Accrued interest payable | 344 | 344 | - | 344 | - | ||||||||||||||||
Off-balance sheet instruments | |||||||||||||||||||||
Commitments to extend credit | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Standby letters of credit | - | - | - | - | - | ||||||||||||||||
Fair value measurements | |||||||||||||||||||||
31-Dec-13 | Carrying | Fair value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||
amount | (Level 2) | (Level 3) | |||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 16,286 | $ | 16,286 | $ | 16,286 | - | - | |||||||||||||
Investment securities: | |||||||||||||||||||||
Available-for-sale | 388,670 | 388,670 | 6,625 | $ | 379,976 | $ | 2,069 | ||||||||||||||
Held-to-maturity | 146 | 162 | - | 162 | - | ||||||||||||||||
Restricted investment in bank stocks | 1,764 | 1,764 | - | 1,764 | - | ||||||||||||||||
Net loans | 492,791 | 491,635 | - | - | 491,635 | ||||||||||||||||
Mortgage servicing rights | 519 | 643 | - | - | 643 | ||||||||||||||||
Accrued interest receivable | 2,579 | 2,579 | - | 2,579 | - | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits with no stated maturities | $ | 574,987 | $ | 574,987 | $ | 574,987 | - | $ | - | ||||||||||||
Deposits with stated maturities | 239,545 | 241,959 | - | $ | 241,959 | - | |||||||||||||||
Short-term borrowings | 35,156 | 35,156 | 35,156 | - | - | ||||||||||||||||
Long-term debt | 5,000 | 5,056 | - | 5,056 | - | ||||||||||||||||
Accrued interest payable | 392 | 392 | - | 392 | - | ||||||||||||||||
Off-balance sheet instruments | |||||||||||||||||||||
Commitments to extend credit | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Standby letters of credit | - | - | - | - | - | ||||||||||||||||
Note_18_Parent_Company_Financi
Note 18 - Parent Company Financial Information | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Note 18 – Parent Company Financial Information | ||||||||||||||||||||||||
Condensed financial statements of QNB Corp. only: | |||||||||||||||||||||||||
Balance Sheets | |||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 48 | $ | 24 | |||||||||||||||||||||
Investment securities available-for-sale | 7,655 | 6,625 | |||||||||||||||||||||||
Investment in subsidiary | 79,112 | 69,215 | |||||||||||||||||||||||
Other assets | 3 | 15 | |||||||||||||||||||||||
Total assets | $ | 86,818 | $ | 75,879 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Other liabilities | $ | 464 | $ | 254 | |||||||||||||||||||||
Shareholders' equity | $ | 86,354 | $ | 75,625 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 86,818 | $ | 75,879 | |||||||||||||||||||||
Statements of Income | |||||||||||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||||||||||
Dividends from subsidiary | $ | 2,925 | $ | 3,512 | |||||||||||||||||||||
Interest, dividend and other income | 142 | 99 | |||||||||||||||||||||||
Securities gains | 1,045 | 629 | |||||||||||||||||||||||
Total income | 4,112 | 4,240 | |||||||||||||||||||||||
Expenses | 313 | 285 | |||||||||||||||||||||||
Income before applicable income taxes and equity in undistributed income of subsidiary | 3,799 | 3,955 | |||||||||||||||||||||||
Provision for income taxes | 292 | 151 | |||||||||||||||||||||||
Income before equity in undistributed income of subsidiary | 3,507 | 3,804 | |||||||||||||||||||||||
Equity in undistributed income of subsidiary | 5,491 | 4,588 | |||||||||||||||||||||||
Net income | $ | 8,998 | $ | 8,392 | |||||||||||||||||||||
Statements of Comprehensive Income (Loss) | |||||||||||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||||||||||
Before | Tax | Net of | Before | Tax | Net of | ||||||||||||||||||||
tax | expense | tax | tax | expense | tax | ||||||||||||||||||||
amount | (benefit) | amount | amount | (benefit) | amount | ||||||||||||||||||||
Net income | $ | 11,642 | $ | 2,644 | $ | 8,998 | $ | 10,738 | $ | 2,346 | $ | 8,392 | |||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||
Net unrealized holding gains (losses) on securities: | |||||||||||||||||||||||||
Unrealized holding gains (losses) arising during the period | 7,657 | 2,604 | 5,053 | (11,098 | ) | (3,774 | ) | (7,324 | ) | ||||||||||||||||
Reclassification adjustment for gains included in net income | (1,112 | ) | (378 | ) | (734 | ) | (824 | ) | (280 | ) | (544 | ) | |||||||||||||
Other comprehensive income (loss) | 6,545 | 2,226 | 4,319 | (11,922 | ) | (4,054 | ) | (7,868 | ) | ||||||||||||||||
Total comprehensive income (loss) | $ | 18,187 | $ | 4,870 | $ | 13,317 | $ | (1,184 | ) | $ | (1,708 | ) | $ | 524 | |||||||||||
Statements of Cash Flows | |||||||||||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||||||||||
Operating Activities | |||||||||||||||||||||||||
Net income | $ | 8,998 | $ | 8,392 | |||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||
Equity in undistributed income from subsidiary | (5,491 | ) | (4,588 | ) | |||||||||||||||||||||
Net securities gains | (1,045 | ) | (629 | ) | |||||||||||||||||||||
Stock-based compensation expense | 83 | 71 | |||||||||||||||||||||||
Increase in other liabilities | 225 | - | |||||||||||||||||||||||
Decrease in other assets | 12 | 443 | |||||||||||||||||||||||
Deferred income tax provision | 29 | - | |||||||||||||||||||||||
Net cash provided by operating activities | 2,811 | 3,689 | |||||||||||||||||||||||
Investing activities | |||||||||||||||||||||||||
Purchase of investment securities | (4,955 | ) | (3,763 | ) | |||||||||||||||||||||
Proceeds from sale of investment securities | 4,839 | 2,589 | |||||||||||||||||||||||
Net cash used by investing activities | (116 | ) | (1,174 | ) | |||||||||||||||||||||
Financing activities | |||||||||||||||||||||||||
Cash dividend paid | (3,328 | ) | (3,130 | ) | |||||||||||||||||||||
Proceeds from issuance of common stock | 628 | 535 | |||||||||||||||||||||||
Tax benefit from exercise of stock options | 29 | 2 | |||||||||||||||||||||||
Net cash used by financing activities | (2,671 | ) | (2,593 | ) | |||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 24 | (78 | ) | ||||||||||||||||||||||
Cash and cash equivalents at beginning of year | 24 | 102 | |||||||||||||||||||||||
Cash and cash equivalents at end of year | $ | 48 | $ | 24 | |||||||||||||||||||||
Note_19_Regulatory_Restriction
Note 19 - Regulatory Restrictions | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||||||||||||
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 19 - Regulatory Restrictions | ||||||||||||||||||||||||
Dividends payable by the Company and the Bank are subject to various limitations imposed by statutes, regulations and policies adopted by bank regulatory agencies. Under Pennsylvania banking law, the Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. Under Federal Reserve regulations, the Bank is limited as to the amount it may lend affiliates, including the Company, unless such loans are collateralized by specific obligations. | |||||||||||||||||||||||||
Both the Company and the Bank are subject to regulatory capital requirements administered by Federal banking agencies. Failure to meet minimum capital requirements can initiate actions by regulators that could have an effect on the financial statements. Under the framework for prompt corrective action, both the Company and the Bank must meet capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items. The capital amounts and classification are also subject to qualitative judgments by the regulators. Management believes, as of December 31, 2014, that the Company and the Bank met capital adequacy requirements to which they were subject. | |||||||||||||||||||||||||
As of the most recent notification, the primary regulator of the Bank considered it to be “well capitalized” under the regulatory framework. There are no conditions or events since that notification that management believes have changed the classification. To be categorized as well capitalized, the Company and the Bank must maintain minimum ratios set forth in the table below. | |||||||||||||||||||||||||
The Company and the Bank’s actual capital amounts and ratios are presented as follows: | |||||||||||||||||||||||||
Capital levels | |||||||||||||||||||||||||
Actual | Adequately capitalized | Well capitalized | |||||||||||||||||||||||
As of December 31, 2014 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total risk-based capital (to risk-weighted assets): | |||||||||||||||||||||||||
Consolidated | $ | 93,927 | 14.06 | % | $ | 53,425 | 8 | % | N/A | N/A | |||||||||||||||
Bank | 86,884 | 13.14 | 52,891 | 8 | $ | 66,114 | 10 | % | |||||||||||||||||
Tier 1 capital (to risk-weighted assets): | |||||||||||||||||||||||||
Consolidated | 85,439 | 12.79 | 26,713 | 4 | N/A | N/A | |||||||||||||||||||
Bank | 78,824 | 11.92 | 26,446 | 4 | 39,669 | 6 | |||||||||||||||||||
Tier 1 capital (to average assets): | |||||||||||||||||||||||||
Consolidated | 85,439 | 8.65 | 39,501 | 4 | N/A | N/A | |||||||||||||||||||
Bank | 78,824 | 8.04 | 39,237 | 4 | 49,047 | 5 | |||||||||||||||||||
Capital levels | |||||||||||||||||||||||||
Actual | Adequately capitalized | Well capitalized | |||||||||||||||||||||||
As of December 31, 2013 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total risk-based capital (to risk-weighted assets): | |||||||||||||||||||||||||
Consolidated | $ | 87,330 | 14.01 | % | $ | 49,871 | 8 | % | N/A | N/A | |||||||||||||||
Bank | 81,076 | 13.13 | 49,402 | 8 | $ | 61,753 | 10 | % | |||||||||||||||||
Tier 1 capital (to risk-weighted assets): | |||||||||||||||||||||||||
Consolidated | 79,037 | 12.68 | 24,936 | 4 | N/A | N/A | |||||||||||||||||||
Bank | 73,342 | 11.88 | 24,701 | 4 | 37,052 | 6 | |||||||||||||||||||
Tier 1 capital (to average assets): | |||||||||||||||||||||||||
Consolidated | 79,037 | 8.45 | 37,419 | 4 | N/A | N/A | |||||||||||||||||||
Bank | 73,342 | 7.88 | 37,215 | 4 | 46,518 | 5 | |||||||||||||||||||
Note_20_Consolidated_Quarterly
Note 20 - Consolidated Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Quarterly Financial Information [Text Block] | Note 20 – Consolidated Quarterly Financial Data (Unaudited) | ||||||||||||||||||||||||||||||||
The unaudited quarterly results of operations for the years ended 2014 and 2013 are in the following table: | |||||||||||||||||||||||||||||||||
Quarters Ended 2014 | Quarters Ended 2013 | ||||||||||||||||||||||||||||||||
31-Mar | 30-Jun | Sept. 30 | Dec. 31 | 31-Mar | 30-Jun | Sept. 30 | Dec. 31 | ||||||||||||||||||||||||||
Interest income | $ | 7,527 | $ | 7,588 | $ | 7,741 | $ | 7,814 | $ | 7,676 | $ | 7,624 | $ | 7,678 | $ | 7,606 | |||||||||||||||||
Interest expense | 1,134 | 1,091 | 1,156 | 1,163 | 1,343 | 1,288 | 1,226 | 1,176 | |||||||||||||||||||||||||
Net interest income | 6,393 | 6,497 | 6,585 | 6,651 | 6,333 | 6,336 | 6,452 | 6,430 | |||||||||||||||||||||||||
Provision for loan losses | - | - | - | 400 | - | 100 | 150 | 150 | |||||||||||||||||||||||||
Non-interest income | 1,812 | 1,625 | 1,517 | 2,588 | 1,748 | 1,239 | 1,553 | 1,273 | |||||||||||||||||||||||||
Non-interest expense | 5,212 | 5,314 | 5,478 | 5,622 | 4,940 | 5,091 | 5,123 | 5,072 | |||||||||||||||||||||||||
Income before income taxes | 2,993 | 2,808 | 2,624 | 3,217 | 3,141 | 2,384 | 2,732 | 2,481 | |||||||||||||||||||||||||
Provision for income taxes | 697 | 636 | 580 | 731 | 733 | 490 | 604 | 519 | |||||||||||||||||||||||||
Net Income | $ | 2,296 | $ | 2,172 | $ | 2,044 | $ | 2,486 | $ | 2,408 | $ | 1,894 | $ | 2,128 | $ | 1,962 | |||||||||||||||||
Earnings Per Share - basic * | $ | 0.7 | $ | 0.66 | $ | 0.62 | $ | 0.75 | $ | 0.75 | $ | 0.58 | $ | 0.65 | $ | 0.6 | |||||||||||||||||
Earnings Per Share - diluted * | $ | 0.7 | $ | 0.66 | $ | 0.62 | $ | 0.75 | $ | 0.74 | $ | 0.58 | $ | 0.65 | $ | 0.6 | |||||||||||||||||
* Due to rounding, quarterly earnings per share may not sum to annual earnings per share | |||||||||||||||||||||||||||||||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounting Policies [Abstract] | |||||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation | ||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. The consolidated entity is referred to herein as “QNB”. All significant inter-company accounts and transactions have been eliminated in the consolidated financial statements. | |||||||||
For comparative purposes, prior year’s consolidated financial statements have been reclassified to conform to the report classifications of the current year. The reclassifications had no effect on net income. | |||||||||
Tabular information, other than share and per share data, is presented in thousands of dollars. | |||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | ||||||||
These statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and predominant practices within the banking industry. The preparation of these consolidated financial statements requires QNB to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. QNB evaluates estimates on an on-going basis. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the determination of the valuation of other real estate owned, the fair value of financial instruments, other-than-temporary impairment of investment securities, the determination of impairment of restricted bank stock and the valuation of deferred tax assets and income taxes. QNB bases its estimates on historical experience and various other factors and assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. | |||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Significant Group Concentrations of Credit Risk | ||||||||
Most of the Company’s activities are with customers located within Bucks, Montgomery and Lehigh Counties in southeastern Pennsylvania. Note 4 discusses the types of investment securities in which the Company invests. Note 5 discusses the types of lending in which the Company engages. The Company does not have any significant concentrations to any one industry or customer. Although the Company has a diversified loan portfolio, its debtors’ ability to honor their contracts is influenced by the region’s economy. | |||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | ||||||||
For purposes of the statement of cash flows, cash and cash equivalents consist of cash on hand, cash items in process of collection, amounts due from banks, interest-bearing deposits in the Federal Reserve Bank and other banks and Federal funds sold. QNB maintains a portion of its interest-bearing deposits at various commercial financial institutions. At times, the balances exceed the FDIC insured limits. | |||||||||
Investment, Policy [Policy Text Block] | Trading Securities | ||||||||
The Company engages in trading activities for its own account. Interest and dividends are included in interest income. Debt and equity securities that are bought and held principally for the purpose of selling in the near term are classified as trading securities and reported at fair value, with unrealized gains and losses included in earnings. In 2014, QNB sold approximately $5,000,000 in available-for-sale municipal securities and established a trading account with a broker with a balance of $4,207,000 at December 31, 2014, consisting of municipal securities and a brokerage cash account of $1,160,000. QNB had no trading securities at December 31, 2013. | |||||||||
Investment Securities | |||||||||
Investment securities that QNB has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost. Interest and dividends are included in interest income. Debt and equity securities not classified as either held-to-maturity securities or trading securities are classified as available-for-sale securities and reported at fair value, with unrealized gains and losses, net of tax, excluded from earnings and reported in other comprehensive income or loss, a separate component of shareholders’ equity. Management determines the appropriate classification of securities at the time of purchase. | |||||||||
Available-for-sale securities include securities that management intends to use as part of its asset/liability management strategy and that may be sold in response to changes in credit ratings, changes in market interest rates and related changes in the securities’ prepayment risk or to meet liquidity needs. | |||||||||
Premiums and discounts on debt securities are recognized in interest income using a constant yield method. Gains and losses on sales of available-for-sale securities are recorded on the trade date and are computed on the specific identification method and included in non-interest income. | |||||||||
Other-than-temporary Impairment of Investment Securities [Policy Text Block] | Other-than-Temporary Impairment of Investment Securities | ||||||||
Securities are evaluated periodically to determine whether a decline in their value is other-than-temporary. Management utilizes criteria such as the magnitude and duration of the decline, in addition to the reasons underlying the decline, to determine whether the loss in value is other-than-temporary. The term “other-than-temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support realizable value equal to or greater than carrying value of the investment. For equity securities, once a decline in value is determined to be other-than-temporary, the value of the equity security is reduced to fair value and a corresponding charge to earnings is recognized. | |||||||||
The Company follows the accounting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320-10 as it relates to the recognition and presentation of other-than-temporary impairment (“OTTI”). This accounting guidance specifies that (a) if a company does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not, the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held to maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the non-credit portion of a previous other-than-temporary impairment would be amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. | |||||||||
Cost Method Investments, Policy [Policy Text Block] | Restricted Investment in Bank Stock | ||||||||
Restricted bank stock is comprised of restricted stock of the Federal Home Loan Bank of Pittsburgh (“FHLB”) in the amount of $635,000 and the Atlantic Community Bankers Bank in the amount of $12,000 at December 31, 2014. Federal law requires a member institution of the FHLB to hold stock of its district bank according to a predetermined formula. These restricted securities are carried at cost | |||||||||
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Loans | ||||||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the principal amount outstanding, net of deferred loan fees and costs. Interest income is accrued on the principal amount outstanding. Loan origination and commitment fees and related direct costs are deferred and amortized to income over the term of the respective loan and loan commitment period as a yield adjustment. | |||||||||
Loans held-for-sale consist of residential mortgage loans and are carried at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recognized through a valuation allowance charged to income. Gains and losses on residential mortgages held-for-sale are included in non-interest income. | |||||||||
Nonperforming Assets [Policy Text Block] | Non-Performing Assets | ||||||||
Non-performing assets are comprised of accruing loans past due 90 days or more, non-accrual loans and investment securities, restructured loans, other real estate owned and repossessed assets. Non-accrual loans and investment securities are those on which the accrual of interest has ceased. Loans and indirect lease financing loans are placed on non-accrual status immediately if, in the opinion of management, collection is doubtful, or when principal or interest is past due 90 days or more and collateral is insufficient to cover principal and interest. Interest accrued, but not collected at the date a loan is placed on non-accrual status, is reversed and charged against interest income. Subsequent cash receipts are applied either to the outstanding principal or recorded as interest income, depending on management’s assessment of the ultimate collectability of principal and interest. Loans are returned to an accrual status when the borrower’s ability to make periodic principal and interest payments has returned to normal (i.e. brought current with respect to principal or interest or restructured) and the paying capacity of the borrower and/or the underlying collateral is deemed sufficient to cover principal and interest. | |||||||||
From time to time, QNB may extend, restructure, or otherwise modify the terms of existing loans, on a case-by-case basis, to remain competitive and retain certain customers, as well as assist other customers that may be experiencing financial difficulties. A loan is considered to be a troubled debt restructuring (“TDR”) loan when the Company grants a concession to the borrower because of the borrower’s financial condition that it would not otherwise consider. Such concessions include the reduction of interest rates, forgiveness of principal or interest, or other modifications of interest rates to less than the current market rate for new obligations with similar risk. Loans classified as TDRs are considered non-performing and are also designated as impaired. | |||||||||
Accounting for impairment in the performance of a loan is required when it is probable that all amounts, including both principal and interest, will not be collected in accordance with the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, at the loan’s observable market price or the fair value of the collateral if the loans are collateral dependent. Impairment criteria are applied to the loan portfolio exclusive of smaller homogeneous loans such as residential mortgage and consumer loans which are evaluated collectively for impairment. | |||||||||
Loans are fully charged-off or charged down to net realizable value (fair value of collateral less estimated costs to sell) when deemed uncollectible due to bankruptcy or other factors, or when they reach a defined number of days past due based on loan product, industry practice, terms and other factors. | |||||||||
Loans are considered past due when contractually required principal or interest payments have not been made on the due dates. | |||||||||
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Allowance for Loan Losses | ||||||||
QNB maintains an allowance for loan losses, which is intended to absorb probable known and inherent losses in the outstanding loan portfolio. The allowance is reduced by actual credit losses and is increased by the provision for loan losses and recoveries of previous losses. The provisions for loan losses are charged to earnings to bring the total allowance for loan losses to a level considered necessary by management. | |||||||||
The allowance for loan losses is based on management’s continuing review and evaluation of the loan portfolio. The level of the allowance is determined by assigning specific reserves to individually identified problem credits and general reserves to all other loans. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value) of the impaired loan is lower than the carrying value of that loan. The portion of the allowance that is allocated to internally criticized and non-accrual loans is determined by estimating the inherent loss on each credit after giving consideration to the value of underlying collateral. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure based upon historical loss rates. These loss rates are based on a three year history of charge-offs and are more heavily weighted for recent experience for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include: | |||||||||
• | Lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices. | ||||||||
• | External factor effects, such as legal and regulatory requirements. | ||||||||
• | National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. | ||||||||
• | Nature and volume of the portfolio including growth. | ||||||||
• | Experience, ability, and depth of lending management and staff. | ||||||||
• | Volume and severity of past due, classified and nonaccrual loans. | ||||||||
• | Quality of the Company’s loan review system, and the degree of oversight by the Company’s Board of Directors. | ||||||||
• | Existence and effect of any concentrations of credit and changes in the level of such concentrations. | ||||||||
Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. | |||||||||
An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | |||||||||
Management emphasizes loan quality and close monitoring of potential problem credits. Credit risk identification and review processes are utilized in order to assess and monitor the degree of risk in the loan portfolio. QNB’s lending and credit administration staff are charged with reviewing the loan portfolio and identifying changes in the economy or in a borrower’s circumstances which may affect the ability to repay debt or the value of pledged collateral. A loan classification and review system exists that identifies those loans with a higher than normal risk of collection. Each commercial loan is assigned a grade based upon an assessment of the borrower’s financial capacity to service the debt and the presence and value of collateral for the loan. An independent loan review group tests risk assessments and evaluates the adequacy of the allowance for loan losses. Management meets monthly to review the credit quality of the loan portfolio and quarterly to review the allowance for loan losses. | |||||||||
In addition, various regulatory agencies, as an integral part of their examination process, periodically review QNB’s allowance for loan losses. Such agencies may require QNB to recognize additions to the allowance based on their judgments using information available to them at the time of their examination. | |||||||||
Management believes that it uses the best information available to make determinations about the adequacy of the allowance and that it has established its existing allowance for loan losses in accordance with GAAP. If circumstances differ substantially from the assumptions used in making determinations, future adjustments to the allowance for loan losses may be necessary and results of operations could be affected. Because future events affecting borrowers and collateral cannot be predicted with certainty, there can be no assurance that increases to the allowance will not be necessary should the quality of any loans deteriorate as a result of the factors discussed above. | |||||||||
Transfers and Servicing of Financial Assets, Policy [Policy Text Block] | Transfers of Financial Assets | ||||||||
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||||||
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Financings, Policy [Policy Text Block] | Servicing Assets | ||||||||
Servicing assets are recognized as separate assets when rights are acquired through the sale of financial assets. When mortgage loans are sold, a portion of the cost of originating the loan is allocated to the servicing rights based on relative fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The Company subsequently measures servicing rights using the amortization method where servicing rights are amortized in proportion to and over the period of estimated net servicing income. On a quarterly basis an independent third party determines the fair value of QNB’s servicing assets. These assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranches. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the valuation allowance may be recorded as an increase to income. Capitalized servicing rights are reported in other assets and are amortized into other noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. | |||||||||
Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal, or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. | |||||||||
Loans and Leases Receivable, Real Estate Acquired Through Foreclosure, Policy [Policy Text Block] | Foreclosed Assets | ||||||||
Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets. At December 31, 2014 and 2013, the Company had foreclosed assets of $3,025,000 and $2,825,000, respectively. These amounts are included in other assets on the balance sheet. | |||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | Premises and Equipment | ||||||||
Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are calculated principally on an accelerated or straight-line basis over the estimated useful lives of the assets, or the shorter of the estimated useful life or lease term for leasehold improvements, as follows: | |||||||||
Buildings 10 to 40 years | |||||||||
Furniture and Equipment 3 to 10 years | |||||||||
Expenditures for maintenance and repairs are charged to operations as incurred. Gains or losses upon disposition are reflected in earnings as realized. | |||||||||
Life Settlement Contracts, Policy [Policy Text Block] | Bank-Owned Life Insurance | ||||||||
The Bank invests in bank-owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by the Bank on a select group of employees. The Bank is the owner and beneficiary of the policies. Income from the increase in cash surrender value of the policies as well as the receipt of death benefits is included in non-interest income on the income statement. | |||||||||
The Company follows the accounting guidance for postretirement benefit aspects of endorsement split-dollar life insurance arrangements which applies to life insurance arrangements that provide an employee with a specified benefit that is not limited to the employee’s active service period, including certain bank-owned life insurance policies. It requires an employer to recognize a liability and related compensation costs for future benefits that extend to postretirement periods. The expense recorded during 2014 and 2013 was approximately $21,000 and $19,000, respectively, and is included in non-interest expense under salaries and benefits expense. | |||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation | ||||||||
At December 31, 2014, QNB sponsored stock-based compensation plans, administered by a Board committee, under which both qualified and non-qualified stock options may be granted periodically to certain employees. QNB accounts for all awards granted under stock-based compensation plans in accordance with FASB ASC 718, Compensation - Stock Compensation. Compensation cost has been measured using the fair value of an award on the grant date and is recognized over the service period, which is usually the vesting period. | |||||||||
Stock-based compensation expense was approximately $83,000 and $71,000 for the years ended December 31, 2014 and 2013, respectively. There was no tax benefit recognized related to this compensation for the years ended December 31, 2014 and 2013. | |||||||||
The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the option and each vesting date. QNB estimated the fair value of stock options on the date of the grant using the Black-Scholes option pricing model. The model requires the use of numerous assumptions, many of which are highly subjective in nature. The following assumptions were used in the option pricing model in determining the fair value of options granted during the periods presented. | |||||||||
Year ended December 31, | 2014 | 2013 | |||||||
Risk free interest rate | 0.69 | % | 0.35 | % | |||||
Dividend yield | 4.28 | 4.26 | |||||||
Volatility | 28.1 | 34.1 | |||||||
Expected life (years) | 5 | 5 | |||||||
The weighted average fair value per share of options granted during 2014 and 2013 was $3.81 and $4.52, respectively. The risk-free interest rate was selected based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued. Historical information was the primary basis for the selection of the expected dividend yield, expected volatility and expected lives of the options. | |||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes | ||||||||
QNB accounts for income taxes under the asset/liability method in accordance with income tax accounting guidance (ASC 740 - Income Taxes). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is established against deferred tax assets when, in the judgment of management, it is more likely than not that such deferred tax assets will not become available. Because the judgment about the level of future taxable income is dependent to a great extent on matters that may, at least in part, be beyond QNB’s control, it is at least reasonably possible that management’s judgment about the need for a valuation allowance for deferred taxes could change in the near term. | |||||||||
In connection with the accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions, QNB has evaluated its tax positions as of December 31, 2014. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has more than a 50 percent likelihood of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. Under the “more-likely-than-not” threshold guidelines, QNB believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. As of December 31, 2014, QNB had no material unrecognized tax benefits or accrued interest and penalties. QNB’s policy is to account for interest as a component of interest expense and penalties as a component of other expense. The Company and its subsidiary are subject to U.S. Federal income tax as well as income tax of the Commonwealth of Pennsylvania. QNB is no longer subject to examination by U.S. Federal or State taxing authorities for years before 2011. | |||||||||
Stockholders' Equity, Policy [Policy Text Block] | Treasury Stock | ||||||||
Common stock shares repurchased are recorded as treasury stock at cost. | |||||||||
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share | ||||||||
Basic earnings per share excludes any dilutive effects of options and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share gives effect to all dilutive potential common shares that were outstanding during the period. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. | |||||||||
Treasury shares are not deemed outstanding for earnings per share calculations. | |||||||||
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income | ||||||||
Comprehensive income is defined as the change in equity of a business entity during a period due to transactions and other events and circumstances, excluding those resulting from investments by and distributions to owners. Comprehensive income consists of net income and other comprehensive income. For QNB, the primary component of other comprehensive income is the unrealized holding gains or losses on available-for-sale investment securities and unrealized losses on available-for-sale investment securities related to factors other than credit on debt securities. | |||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | ||||||||
The Company recognizes revenue in the consolidated statements of income as it is earned and when collectability is reasonably assured. The primary source of revenue is interest income from interest earning assets, which is recognized on the accrual basis of accounting using the effective interest method. The recognition of revenues from interest earning assets is based upon formulas from underlying loan agreements, securities contracts or other similar contracts. Non-interest income is recognized on the accrual basis of accounting as services are provided or as transactions occur. Non-interest income includes fees from brokerage and advisory service, deposit accounts, merchant services, ATM and debit card fees, mortgage banking activities, and other miscellaneous services and transactions. | |||||||||
Advertising Costs, Policy [Policy Text Block] | Advertising Costs | ||||||||
Advertising costs are recorded in the period they are incurred within operating expenses in non-interest expense in the consolidated statements of income. | |||||||||
Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block] | Financial Instruments with Off-Balance-Sheet Risk | ||||||||
The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of these instruments. The Company uses the same credit policies in making commitments and contractual obligations as it does for on-balance-sheet instruments. The Company reflects its estimate of credit risk for these instruments in other liabilities on the consolidated balance sheet with the corresponding expense recorded in other operating expenses in the consolidated statement of income. | |||||||||
Subsequent Events, Policy [Policy Text Block] | Subsequent Events | ||||||||
QNB has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2014 for items that should potentially be recognized or disclosed in these consolidated financial statements. | |||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements | ||||||||
In January 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-04 – Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The ASU clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The objective of this ASU is to promote uniformity in practice on this topic. The amendment is effective for fiscal years and interim periods within those years beginning after December 15, 2014. The Company does not anticipate the adoption of this guidance will have a material impact on its consolidated financial statements but will result in expanded disclosures. | |||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU was issued to help improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The ASU’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new ASU. | |||||||||
In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The provisions in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently evaluating the impact the adoption of the standard will have on its financial position or results of operations. |
Note_1_Summary_of_Significant_1
Note 1 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | |||||||||
Year ended December 31, | 2014 | 2013 | |||||||
Risk free interest rate | 0.69 | % | 0.35 | % | |||||
Dividend yield | 4.28 | 4.26 | |||||||
Volatility | 28.1 | 34.1 | |||||||
Expected life (years) | 5 | 5 |
Note_2_Earnings_Per_Share_and_1
Note 2 - Earnings Per Share and Share Repurchase Plan (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | |||||||||
Year ended December 31, | 2014 | 2013 | |||||||
Numerator for basic and diluted earnings per share - net income | $ | 8,998 | $ | 8,392 | |||||
Denominator for basic earnings per share - weighted average shares outstanding | 3,291,939 | 3,248,397 | |||||||
Effect of dilutive securities - employee stock options | 10,635 | 11,678 | |||||||
Denominator for diluted earnings per share - adjusted weighted average shares outstanding | 3,302,574 | 3,260,075 | |||||||
Earnings per share - basic | $ | 2.73 | $ | 2.58 | |||||
Earnings per share - diluted | $ | 2.72 | $ | 2.57 |
Note_4_Investment_Securities_T
Note 4 - Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||
Trading Securities [Table Text Block] | |||||||||||||||||||||||||||||||||||||||
Fair | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | value | ||||||||||||||||||||||||||||||||||||||
State and municipal | $ | 4,207 | |||||||||||||||||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] | |||||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||||
unrealized | unrealized | ||||||||||||||||||||||||||||||||||||||
Fair | holding | holding | Amortized | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | value | gains | losses | cost | |||||||||||||||||||||||||||||||||||
U.S. Government agency | $ | 62,665 | $ | 212 | $ | (472 | ) | $ | 62,925 | ||||||||||||||||||||||||||||||
State and municipal | 72,569 | 1,500 | (150 | ) | 71,219 | ||||||||||||||||||||||||||||||||||
U.S. Government agencies and sponsored enterprises (GSEs): | |||||||||||||||||||||||||||||||||||||||
Mortgage-backed | 136,192 | 1,819 | (466 | ) | 134,839 | ||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations (CMOs) | 87,662 | 330 | (1,300 | ) | 88,632 | ||||||||||||||||||||||||||||||||||
Pooled trust preferred | 2,439 | 160 | (1,240 | ) | 3,519 | ||||||||||||||||||||||||||||||||||
Corporate debt | 6,037 | 30 | - | 6,007 | |||||||||||||||||||||||||||||||||||
Equity | 7,655 | 1,022 | (70 | ) | 6,703 | ||||||||||||||||||||||||||||||||||
Total investment securities available-for-sale | $ | 375,219 | $ | 5,073 | $ | (3,698 | ) | $ | 373,844 | ||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||||
unrealized | unrealized | ||||||||||||||||||||||||||||||||||||||
Fair | holding | holding | Amortized | ||||||||||||||||||||||||||||||||||||
31-Dec-13 | value | gains | losses | cost | |||||||||||||||||||||||||||||||||||
U.S. Government agency | $ | 71,639 | $ | 195 | $ | (1,702 | ) | $ | 73,146 | ||||||||||||||||||||||||||||||
State and municipal | 87,199 | 1,023 | (1,627 | ) | 87,803 | ||||||||||||||||||||||||||||||||||
U.S. Government agencies and sponsored enterprises (GSEs): | |||||||||||||||||||||||||||||||||||||||
Mortgage-backed | 139,723 | 1,436 | (2,361 | ) | 140,648 | ||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations (CMOs) | 75,394 | 556 | (2,334 | ) | 77,172 | ||||||||||||||||||||||||||||||||||
Pooled trust preferred | 2,069 | 85 | (1,535 | ) | 3,519 | ||||||||||||||||||||||||||||||||||
Corporate debt | 6,021 | 24 | (13 | ) | 6,010 | ||||||||||||||||||||||||||||||||||
Equity | 6,625 | 1,127 | (44 | ) | 5,542 | ||||||||||||||||||||||||||||||||||
Total investment securities available-for-sale | $ | 388,670 | $ | 4,446 | $ | (9,616 | ) | $ | 393,840 | ||||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date [Table Text Block] | |||||||||||||||||||||||||||||||||||||||
Amortized | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Fair value | cost | |||||||||||||||||||||||||||||||||||||
Due in one year or less | $ | 9,269 | $ | 9,170 | |||||||||||||||||||||||||||||||||||
Due after one year through five years | 260,683 | 260,108 | |||||||||||||||||||||||||||||||||||||
Due after five years through ten years | 73,771 | 73,496 | |||||||||||||||||||||||||||||||||||||
Due after ten years | 23,841 | 24,367 | |||||||||||||||||||||||||||||||||||||
Equity securities | 7,655 | 6,703 | |||||||||||||||||||||||||||||||||||||
Total investment securities available-for-sale | $ | 375,219 | $ | 373,844 | |||||||||||||||||||||||||||||||||||
Amortized | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Fair value | cost | |||||||||||||||||||||||||||||||||||||
Due in one year or less | - | - | |||||||||||||||||||||||||||||||||||||
Due after one year through five years | $ | 156 | $ | 146 | |||||||||||||||||||||||||||||||||||
Due after five years through ten years | - | - | |||||||||||||||||||||||||||||||||||||
Due after ten years | - | - | |||||||||||||||||||||||||||||||||||||
Total investment securities held-to-maturity | $ | 156 | $ | 146 | |||||||||||||||||||||||||||||||||||
Realized Gain (Loss) on Investments [Table Text Block] | |||||||||||||||||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Other-than- | Other-than- | ||||||||||||||||||||||||||||||||||||||
Gross | Gross | temporary | Gross | Gross | temporary | ||||||||||||||||||||||||||||||||||
realized | realized | impairment | realized | realized | impairment | ||||||||||||||||||||||||||||||||||
gains | losses | losses | Net gains | gains | losses | losses | Net gains | ||||||||||||||||||||||||||||||||
Equity securities | $ | 1,051 | $ | (6 | ) | $ | - | $ | 1,045 | $ | 672 | $ | - | $ | (43 | ) | $ | 629 | |||||||||||||||||||||
Debt securities | 310 | (243 | ) | - | 67 | 196 | (1 | ) | - | 195 | |||||||||||||||||||||||||||||
Total | $ | 1,361 | $ | (249 | ) | $ | - | $ | 1,112 | $ | 868 | $ | (1 | ) | $ | (43 | ) | $ | 824 | ||||||||||||||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Table Text Block] | |||||||||||||||||||||||||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 1,271 | $ | 1,271 | |||||||||||||||||||||||||||||||||||
Reductions: sale, collateralized debt obligation | (118 | ) | - | ||||||||||||||||||||||||||||||||||||
Additions: | |||||||||||||||||||||||||||||||||||||||
Initial credit impairments | - | - | |||||||||||||||||||||||||||||||||||||
Subsequent credit impairments | - | - | |||||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 1,153 | $ | 1,271 | |||||||||||||||||||||||||||||||||||
Held-to-maturity Securities [Table Text Block] | |||||||||||||||||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||||||||||||||||||
unrealized | unrealized | unrealized | unrealized | ||||||||||||||||||||||||||||||||||||
Amortized | holding | holding | Fair | Amortized | holding | holding | Fair | ||||||||||||||||||||||||||||||||
cost | gains | losses | value | cost | gains | losses | value | ||||||||||||||||||||||||||||||||
State and municipal | $ | 146 | $ | 10 | $ | - | $ | 156 | $ | 146 | $ | 16 | $ | - | $ | 162 | |||||||||||||||||||||||
Schedule of Unrealized Loss on Investments [Table Text Block] | |||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||||
No. of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
securities | value | losses | value | losses | value | losses | |||||||||||||||||||||||||||||||||
U.S. Government agency | 29 | $ | 15,466 | $ | (30 | ) | 23,941 | $ | (442 | ) | $ | 39,407 | $ | (472 | ) | ||||||||||||||||||||||||
State and municipal | 39 | 3,452 | (31 | ) | 11,964 | (119 | ) | 15,416 | (150 | ) | |||||||||||||||||||||||||||||
Mortgage-backed | 34 | 6,521 | (15 | ) | 38,586 | (451 | ) | 45,107 | (466 | ) | |||||||||||||||||||||||||||||
Collateralized mortgage obligations (CMOs) | 51 | 2,003 | (205 | ) | 35,687 | (1,095 | ) | 37,690 | (1,300 | ) | |||||||||||||||||||||||||||||
Pooled trust preferred | 5 | - | - | 1,978 | (1,240 | ) | 1,978 | (1,240 | ) | ||||||||||||||||||||||||||||||
Equity | 7 | 1,303 | (70 | ) | - | - | 1,303 | (70 | ) | ||||||||||||||||||||||||||||||
Total | 165 | $ | 28,745 | $ | (351 | ) | $ | 112,156 | $ | (3,347 | ) | $ | 140,901 | $ | (3,698 | ) | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or longer | Total | |||||||||||||||||||||||||||||||||||||
No. of | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
securities | value | losses | value | losses | value | losses | |||||||||||||||||||||||||||||||||
U.S. Government agency | 44 | $ | 54,563 | $ | (1,548 | ) | 2,846 | $ | (154 | ) | $ | 57,409 | $ | (1,702 | ) | ||||||||||||||||||||||||
State and municipal | 87 | 33,750 | (1,379 | ) | 4,288 | (248 | ) | 38,038 | (1,627 | ) | |||||||||||||||||||||||||||||
Mortgage-backed | 54 | 75,720 | (2,238 | ) | 1,884 | (123 | ) | 77,604 | (2,361 | ) | |||||||||||||||||||||||||||||
Collateralized mortgage obligations (CMOs) | 45 | 33,622 | (1,413 | ) | 18,567 | (921 | ) | 52,189 | (2,334 | ) | |||||||||||||||||||||||||||||
Pooled trust preferred | 5 | - | - | 1,683 | (1,535 | ) | 1,683 | (1,535 | ) | ||||||||||||||||||||||||||||||
Corporate debt | 2 | 1,987 | (13 | ) | - | - | 1,987 | (13 | ) | ||||||||||||||||||||||||||||||
Equity | 3 | 394 | (24 | ) | 136 | (20 | ) | 530 | (44 | ) | |||||||||||||||||||||||||||||
Total | 240 | $ | 200,036 | $ | (6,615 | ) | $ | 29,404 | $ | (3,001 | ) | $ | 229,440 | $ | (9,616 | ) | |||||||||||||||||||||||
Schedule of Pooled Trust Preferred Securities [Table Text Block] | |||||||||||||||||||||||||||||||||||||||
Deal | Class | Book | Fair | Unreal- | Total | Moody's | Current | Current | Actual deferrals and | Total performing collateral as a % of outstanding bonds | |||||||||||||||||||||||||||||
value | value | ized | Realized | recognized | /Fitch | number of | number of | defaults as a | |||||||||||||||||||||||||||||||
gains (losses) | OTTI | OTTI | ratings | performing | performing | % of total | |||||||||||||||||||||||||||||||||
credit | credit | banks | insurance | collateral | |||||||||||||||||||||||||||||||||||
loss | loss | companies | |||||||||||||||||||||||||||||||||||||
(YTD | |||||||||||||||||||||||||||||||||||||||
2014) | |||||||||||||||||||||||||||||||||||||||
PreTSL IV | Mezzanine* | $ | 243 | $ | 208 | $ | (35 | ) | $ | - | $ | (1 | ) | B1/B | 5 | - | 18 | % | 140.2 | % | |||||||||||||||||||
PreTSL XVII | Mezzanine | 752 | 502 | (250 | ) | - | (222 | ) | C/C | 34 | 5 | 27.3 | 87.2 | ||||||||||||||||||||||||||
PreTSL XIX | Mezzanine | 988 | 508 | (480 | ) | - | - | C/C | 38 | 12 | 13.3 | 92.4 | |||||||||||||||||||||||||||
PreTSL XXV | Mezzanine | 766 | 423 | (343 | ) | - | (222 | ) | C/C | 48 | 5 | 30.7 | 85.5 | ||||||||||||||||||||||||||
PreTSL XXVI | Mezzanine | 469 | 337 | (132 | ) | - | (270 | ) | C/C | 43 | 7 | 25.9 | 91 | ||||||||||||||||||||||||||
PreTSL XXVI | Mezzanine | 301 | 461 | 160 | - | (438 | ) | C/C | 43 | 7 | 25.9 | 91 | |||||||||||||||||||||||||||
$ | 3,519 | $ | 2,439 | $ | (1,080 | ) | $ | - | $ | (1,153 | ) |
Note_5_Loans_and_Allowance_for1
Note 5 - Loans and Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Note 5 - Loans and Allowance for Loan Losses (Tables) [Line Items] | |||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | |||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 118,845 | $ | 111,339 | |||||||||||||||||||||
Construction | 23,471 | 15,929 | |||||||||||||||||||||||
Secured by commercial real estate | 203,534 | 190,602 | |||||||||||||||||||||||
Secured by residential real estate | 53,077 | 47,672 | |||||||||||||||||||||||
State and political subdivisions | 44,104 | 33,773 | |||||||||||||||||||||||
Loans to depository institutions | - | 1,250 | |||||||||||||||||||||||
Indirect lease financing | 7,685 | 8,364 | |||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 37,147 | 29,730 | |||||||||||||||||||||||
Home equity loans and lines | 63,213 | 59,977 | |||||||||||||||||||||||
Consumer | 4,175 | 3,116 | |||||||||||||||||||||||
Total loans | 555,251 | 501,752 | |||||||||||||||||||||||
Net unearned costs (fees) | 31 | (36 | ) | ||||||||||||||||||||||
Loans receivable | $ | 555,282 | $ | 501,716 | |||||||||||||||||||||
Financing Receivable Credit Quality Indicators [Table Text Block] | |||||||||||||||||||||||||
31-Dec-14 | Pass | Special mention | Substandard | Doubtful | Total | ||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 111,560 | $ | 42 | $ | 7,243 | $ | - | $ | 118,845 | |||||||||||||||
Construction | 22,981 | 128 | 362 | - | 23,471 | ||||||||||||||||||||
Secured by commercial real estate | 178,339 | 2,418 | 22,777 | - | 203,534 | ||||||||||||||||||||
Secured by residential real estate | 50,172 | 408 | 2,497 | - | 53,077 | ||||||||||||||||||||
State and political subdivisions | 42,771 | - | 1,333 | - | 44,104 | ||||||||||||||||||||
Loans to depository institutions | - | - | - | - | - | ||||||||||||||||||||
Indirect lease financing | 7,543 | - | 142 | - | 7,685 | ||||||||||||||||||||
$ | 413,366 | $ | 2,996 | $ | 34,354 | $ | - | $ | 450,716 | ||||||||||||||||
31-Dec-13 | Pass | Special mention | Substandard | Doubtful | Total | ||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 100,943 | $ | 59 | $ | 10,337 | $ | - | $ | 111,339 | |||||||||||||||
Construction | 13,751 | 827 | 1,351 | - | 15,929 | ||||||||||||||||||||
Secured by commercial real estate | 163,349 | 4,199 | 23,054 | - | 190,602 | ||||||||||||||||||||
Secured by residential real estate | 43,854 | 187 | 3,631 | - | 47,672 | ||||||||||||||||||||
State and political subdivisions | 33,488 | - | 285 | - | 33,773 | ||||||||||||||||||||
Loans to depository institutions | 1,250 | - | - | - | 1,250 | ||||||||||||||||||||
Indirect lease financing | 8,199 | - | 165 | - | 8,364 | ||||||||||||||||||||
$ | 364,834 | $ | 5,272 | $ | 38,823 | $ | - | $ | 408,929 | ||||||||||||||||
Past Due Financing Receivables [Table Text Block] | |||||||||||||||||||||||||
31-Dec-14 | 30-59 days | 60-89 days | 90 days or | Total past | Current | Total loans | |||||||||||||||||||
past due | past due | more past | due loans | receivable | |||||||||||||||||||||
due | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | - | - | - | - | $ | 118,845 | $ | 118,845 | |||||||||||||||||
Construction | $ | 466 | - | - | $ | 466 | 23,005 | 23,471 | |||||||||||||||||
Secured by commercial real estate | 28 | $ | 332 | $ | 3,747 | 4,107 | 199,427 | 203,534 | |||||||||||||||||
Secured by residential real estate | 600 | 574 | - | 1,174 | 51,903 | 53,077 | |||||||||||||||||||
State and political subdivisions | - | - | - | - | 44,104 | 44,104 | |||||||||||||||||||
Loans to depository institutions | - | - | - | - | - | - | |||||||||||||||||||
Indirect lease financing | 291 | - | - | 291 | 7,394 | 7,685 | |||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 526 | - | - | 526 | 36,621 | 37,147 | |||||||||||||||||||
Home equity loans and lines | 66 | 49 | - | 115 | 63,098 | 63,213 | |||||||||||||||||||
Consumer | 16 | 8 | - | 24 | 4,151 | 4,175 | |||||||||||||||||||
$ | 1,993 | $ | 963 | $ | 3,747 | $ | 6,703 | $ | 548,548 | $ | 555,251 | ||||||||||||||
31-Dec-13 | 30-59 days | 60-89 days past due | 90 days or | Total past | Current | Total loans | |||||||||||||||||||
past due | more past | due loans | receivable | ||||||||||||||||||||||
due | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 112 | - | $ | 17 | $ | 129 | $ | 111,210 | $ | 111,339 | ||||||||||||||
Construction | - | - | - | - | 15,929 | 15,929 | |||||||||||||||||||
Secured by commercial real estate | 1,126 | $ | 361 | 255 | 1,742 | 188,860 | 190,602 | ||||||||||||||||||
Secured by residential real estate | 1,242 | 98 | 105 | 1,445 | 46,227 | 47,672 | |||||||||||||||||||
State and political subdivisions | 65 | 65 | - | 130 | 33,643 | 33,773 | |||||||||||||||||||
Loans to depository institutions | - | - | - | - | 1,250 | 1,250 | |||||||||||||||||||
Indirect lease financing | 311 | 152 | - | 463 | 7,901 | 8,364 | |||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 752 | 5 | 270 | 1,027 | 28,703 | 29,730 | |||||||||||||||||||
Home equity loans and lines | 295 | 2 | 106 | 403 | 59,574 | 59,977 | |||||||||||||||||||
Consumer | 25 | 5 | 17 | 47 | 3,069 | 3,116 | |||||||||||||||||||
$ | 3,928 | $ | 688 | $ | 770 | $ | 5,386 | $ | 496,366 | $ | 501,752 | ||||||||||||||
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | |||||||||||||||||||||||||
31-Dec-14 | Non-accrual | ||||||||||||||||||||||||
90 days or | |||||||||||||||||||||||||
more past due | |||||||||||||||||||||||||
(still accruing) | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | - | $ | 2,171 | |||||||||||||||||||||
Construction | - | 337 | |||||||||||||||||||||||
Secured by commercial real estate | - | 6,465 | |||||||||||||||||||||||
Secured by residential real estate | - | 1,467 | |||||||||||||||||||||||
State and political subdivisions | - | - | |||||||||||||||||||||||
Loans to depository institutions | - | - | |||||||||||||||||||||||
Indirect lease financing | - | - | |||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | - | 225 | |||||||||||||||||||||||
Home equity loans and lines | - | 104 | |||||||||||||||||||||||
Consumer | - | 1 | |||||||||||||||||||||||
$ | - | $ | 10,770 | ||||||||||||||||||||||
31-Dec-13 | Non-accrual | ||||||||||||||||||||||||
90 days or | |||||||||||||||||||||||||
more past due | |||||||||||||||||||||||||
(still accruing) | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | - | $ | 3,956 | ||||||||||||||||||||||
Construction | - | 1,319 | |||||||||||||||||||||||
Secured by commercial real estate | - | 4,630 | |||||||||||||||||||||||
Secured by residential real estate | - | 2,829 | |||||||||||||||||||||||
State and political subdivisions | - | - | |||||||||||||||||||||||
Loans to depository institutions | - | - | |||||||||||||||||||||||
Indirect lease financing | - | 37 | |||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | - | 401 | |||||||||||||||||||||||
Home equity loans and lines | - | 265 | |||||||||||||||||||||||
Consumer | $ | 1 | 16 | ||||||||||||||||||||||
$ | 1 | $ | 13,453 | ||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | |||||||||||||||||||||||||
Year ended December 31, 2014 | Balance, | Provision for | Charge-offs | Recoveries | Balance, end of | ||||||||||||||||||||
beginning of | (credit to) | year | |||||||||||||||||||||||
year | loan losses | ||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 2,044 | $ | (202 | ) | $ | (17 | ) | $ | 67 | $ | 1,892 | |||||||||||||
Construction | 439 | (142 | ) | - | - | 297 | |||||||||||||||||||
Secured by commercial real estate | 2,898 | (131 | ) | (70 | ) | 3 | 2,700 | ||||||||||||||||||
Secured by residential real estate | 1,632 | 1,019 | (1,069 | ) | 48 | 1,630 | |||||||||||||||||||
State and political subdivisions | 186 | 35 | - | - | 221 | ||||||||||||||||||||
Loans to depository institutions | 4 | (4 | ) | - | - | - | |||||||||||||||||||
Indirect lease financing | 103 | 15 | (39 | ) | 14 | 93 | |||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 303 | 103 | (95 | ) | 1 | 312 | |||||||||||||||||||
Home equity loans and lines | 583 | (84 | ) | (156 | ) | 110 | 453 | ||||||||||||||||||
Consumer | 64 | 142 | (167 | ) | 46 | 85 | |||||||||||||||||||
Unallocated | 669 | (351 | ) | N/A | N/A | 318 | |||||||||||||||||||
$ | 8,925 | $ | 400 | $ | (1,613 | ) | $ | 289 | $ | 8,001 | |||||||||||||||
Year ended December 31, 2013 | Balance, | Provision for | Charge-offs | Recoveries | Balance, end of | ||||||||||||||||||||
beginning of | (credit to) | year | |||||||||||||||||||||||
year | loan losses | ||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 2,505 | $ | (421 | ) | $ | (68 | ) | $ | 28 | $ | 2,044 | |||||||||||||
Construction | 209 | 230 | - | - | 439 | ||||||||||||||||||||
Secured by commercial real estate | 3,795 | (259 | ) | (639 | ) | 1 | 2,898 | ||||||||||||||||||
Secured by residential real estate | 1,230 | 743 | (401 | ) | 60 | 1,632 | |||||||||||||||||||
State and political subdivisions | 260 | (75 | ) | - | 1 | 186 | |||||||||||||||||||
Loans to depository institutions | 15 | (11 | ) | - | - | 4 | |||||||||||||||||||
Indirect lease financing | 168 | (93 | ) | (2 | ) | 30 | 103 | ||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 324 | (21 | ) | - | - | 303 | |||||||||||||||||||
Home equity loans and lines | 582 | 207 | (234 | ) | 28 | 583 | |||||||||||||||||||
Consumer | 27 | 88 | (77 | ) | 26 | 64 | |||||||||||||||||||
Unallocated | 657 | 12 | N/A | N/A | 669 | ||||||||||||||||||||
$ | 9,772 | $ | 400 | $ | (1,421 | ) | $ | 174 | $ | 8,925 | |||||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | |||||||||||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||||||||||
Number of | Pre- | Post- | Number of | Pre- | Post- | ||||||||||||||||||||
contracts | modification | modification | contracts | modification | modification | ||||||||||||||||||||
outstanding | outstanding | outstanding | outstanding | ||||||||||||||||||||||
recorded | recorded | recorded | recorded | ||||||||||||||||||||||
investment | investment | investment | investment | ||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | - | - | - | 1 | $ | 757 | $ | 757 | |||||||||||||||||
Construction | - | - | - | 2 | 1,319 | 1,319 | |||||||||||||||||||
Secured by commercial real estate | - | - | - | 1 | 1,822 | 1,805 | |||||||||||||||||||
Secured by residential real estate | - | - | - | 12 | 690 | 676 | |||||||||||||||||||
Retail: | |||||||||||||||||||||||||
Home equity loans and lines | 1 | $ | 25 | $ | 25 | - | - | - | |||||||||||||||||
1 | $ | 25 | $ | 25 | 16 | $ | 4,588 | $ | 4,557 | ||||||||||||||||
Troubled Debt Restructurings Subsequently Defaulted [Table Text Block] | |||||||||||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||||||||||
TDRs Subsequently Defaulted | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||
contracts | investment | contracts | investment | ||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Secured by residential real estate | - | $ | - | 6 | $ | 361 | |||||||||||||||||||
- | $ | - | 6 | $ | 361 | ||||||||||||||||||||
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block] | |||||||||||||||||||||||||
Allowance for Loan Losses | Loans Receivable | ||||||||||||||||||||||||
31-Dec-14 | Balance | Balance | Balance | Balance | Balance | ||||||||||||||||||||
Balance | related to loans | individually | collectively | ||||||||||||||||||||||
related to loans | collectively | evaluated for | evaluated for | ||||||||||||||||||||||
individually | evaluated for | impairment | impairment | ||||||||||||||||||||||
evaluated for | impairment | ||||||||||||||||||||||||
impairment | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 1,892 | $ | 1,095 | $ | 797 | $ | 118,845 | $ | 7,115 | $ | 111,730 | |||||||||||||
Construction | 297 | - | 297 | 23,471 | 362 | 23,109 | |||||||||||||||||||
Secured by commercial real estate | 2,700 | - | 2,700 | 203,534 | 11,546 | 191,988 | |||||||||||||||||||
Secured by residential real estate | 1,630 | 91 | 1,539 | 53,077 | 1,567 | 51,510 | |||||||||||||||||||
State and political subdivisions | 221 | - | 221 | 44,104 | - | 44,104 | |||||||||||||||||||
Loans to depository institutions | - | - | - | - | - | - | |||||||||||||||||||
Indirect lease financing | 93 | - | 93 | 7,685 | 16 | 7,669 | |||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 312 | 4 | 308 | 37,147 | 341 | 36,806 | |||||||||||||||||||
Home equity loans and lines | 453 | 4 | 449 | 63,213 | 129 | 63,084 | |||||||||||||||||||
Consumer | 85 | - | 85 | 4,175 | 1 | 4,174 | |||||||||||||||||||
Unallocated | 318 | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||
$ | 8,001 | $ | 1,194 | $ | 6,489 | $ | 555,251 | $ | 21,077 | $ | 534,174 | ||||||||||||||
Allowance for Loan Losses | Loans Receivable | ||||||||||||||||||||||||
31-Dec-13 | Balance | Balance | Balance | Balance | Balance | Balance | |||||||||||||||||||
related to | related to | individually | collectively | ||||||||||||||||||||||
loans | loans | evaluated for | evaluated for | ||||||||||||||||||||||
individually | collectively | impairment | impairment | ||||||||||||||||||||||
evaluated for | evaluated for | ||||||||||||||||||||||||
impairment | impairment | ||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 2,044 | $ | 1,106 | $ | 938 | $ | 111,339 | $ | 10,304 | $ | 101,035 | |||||||||||||
Construction | 439 | 121 | 318 | 15,929 | 1,351 | 14,578 | |||||||||||||||||||
Secured by commercial real estate | 2,898 | 9 | 2,889 | 190,602 | 12,288 | 178,314 | |||||||||||||||||||
Secured by residential real estate | 1,632 | 639 | 993 | 47,672 | 2,833 | 44,839 | |||||||||||||||||||
State and political subdivisions | 186 | - | 186 | 33,773 | - | 33,773 | |||||||||||||||||||
Loans to depository institutions | 4 | - | 4 | 1,250 | - | 1,250 | |||||||||||||||||||
Indirect lease financing | 103 | 3 | 100 | 8,364 | 37 | 8,327 | |||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 303 | 63 | 240 | 29,730 | 522 | 29,208 | |||||||||||||||||||
Home equity loans and lines | 583 | 70 | 513 | 59,977 | 266 | 59,711 | |||||||||||||||||||
Consumer | 64 | 11 | 53 | 3,116 | 16 | 3,100 | |||||||||||||||||||
Unallocated | 669 | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||
$ | 8,925 | $ | 2,022 | $ | 6,234 | $ | 501,752 | $ | 27,617 | $ | 474,135 | ||||||||||||||
Impaired Financing Receivables [Table Text Block] | |||||||||||||||||||||||||
31-Dec-14 | Recorded investment (after charge-offs) | Unpaid principal balance | Related allowance | Average recorded investment | Interest income recognized | ||||||||||||||||||||
With no specific allowance recorded: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 5,894 | $ | 6,056 | $ | - | |||||||||||||||||||
Construction | 362 | 444 | - | ||||||||||||||||||||||
Secured by commercial real estate | 11,546 | 12,198 | - | ||||||||||||||||||||||
Secured by residential real estate | 903 | 1,427 | - | ||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||
Loans to depository institutions | - | - | - | ||||||||||||||||||||||
Indirect lease financing | 16 | 16 | - | ||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 225 | 250 | - | ||||||||||||||||||||||
Home equity loans and lines | 72 | 93 | - | ||||||||||||||||||||||
Consumer | 1 | 1 | - | ||||||||||||||||||||||
$ | 19,019 | $ | 20,485 | $ | - | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 1,221 | $ | 1,419 | $ | 1,095 | |||||||||||||||||||
Construction | - | - | - | ||||||||||||||||||||||
Secured by commercial real estate | - | - | - | ||||||||||||||||||||||
Secured by residential real estate | 664 | 748 | 91 | ||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||
Loans to depository institutions | - | - | - | ||||||||||||||||||||||
Indirect lease financing | - | - | - | ||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 116 | 116 | 4 | ||||||||||||||||||||||
Home equity loans and lines | 57 | 76 | 4 | ||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||
$ | 2,058 | $ | 2,359 | $ | 1,194 | ||||||||||||||||||||
Total: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 7,115 | $ | 7,475 | $ | 1,095 | $ | 9,305 | $ | 331 | |||||||||||||||
Construction | 362 | 444 | - | 1,050 | 2 | ||||||||||||||||||||
Secured by commercial real estate | 11,546 | 12,198 | - | 12,304 | 344 | ||||||||||||||||||||
Secured by residential real estate | 1,567 | 2,175 | 91 | 2,452 | - | ||||||||||||||||||||
State and political subdivisions | - | - | - | - | - | ||||||||||||||||||||
Loans to depository institutions | - | - | - | - | - | ||||||||||||||||||||
Indirect lease financing | 16 | 16 | - | 26 | 1 | ||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 341 | 366 | 4 | 460 | 5 | ||||||||||||||||||||
Home equity loans and lines | 129 | 169 | 4 | 169 | - | ||||||||||||||||||||
Consumer | 1 | 1 | - | 2 | - | ||||||||||||||||||||
$ | 21,077 | $ | 22,844 | $ | 1,194 | $ | 25,768 | $ | 683 | ||||||||||||||||
31-Dec-13 | Recorded investment (after charge-offs) | Unpaid principal balance | Related allowance | Average recorded investment | Interest income recognized | ||||||||||||||||||||
With no specific allowance recorded: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 8,222 | $ | 8,417 | $ | - | |||||||||||||||||||
Construction | 916 | 1,140 | - | ||||||||||||||||||||||
Secured by commercial real estate | 12,251 | 12,568 | - | ||||||||||||||||||||||
Secured by residential real estate | 728 | 839 | - | ||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||
Loans to depository institutions | - | - | - | ||||||||||||||||||||||
Indirect lease financing | 13 | 16 | - | ||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 250 | 274 | - | ||||||||||||||||||||||
Home equity loans and lines | 135 | 150 | - | ||||||||||||||||||||||
Consumer | - | - | - | ||||||||||||||||||||||
$ | 22,515 | $ | 23,404 | $ | - | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 2,082 | $ | 2,350 | $ | 1,106 | |||||||||||||||||||
Construction | 435 | 493 | 121 | ||||||||||||||||||||||
Secured by commercial real estate | 37 | 37 | 9 | ||||||||||||||||||||||
Secured by residential real estate | 2,105 | 2,248 | 639 | ||||||||||||||||||||||
State and political subdivisions | - | - | - | ||||||||||||||||||||||
Loans to depository institutions | - | - | - | ||||||||||||||||||||||
Indirect lease financing | 24 | 27 | 3 | ||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 272 | 284 | 63 | ||||||||||||||||||||||
Home equity loans and lines | 131 | 154 | 70 | ||||||||||||||||||||||
Consumer | 16 | 16 | 11 | ||||||||||||||||||||||
$ | 5,102 | $ | 5,609 | $ | 2,022 | ||||||||||||||||||||
Total: | |||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||
Commercial and industrial | $ | 10,304 | $ | 10,767 | $ | 1,106 | $ | 6,732 | $ | 34 | |||||||||||||||
Construction | 1,351 | 1,633 | 121 | 3,179 | 46 | ||||||||||||||||||||
Secured by commercial real estate | 12,288 | 12,605 | 9 | 13,765 | 399 | ||||||||||||||||||||
Secured by residential real estate | 2,833 | 3,087 | 639 | 3,090 | 23 | ||||||||||||||||||||
State and political subdivisions | - | - | - | 1,636 | 53 | ||||||||||||||||||||
Loans to depository institutions | - | - | - | - | - | ||||||||||||||||||||
Indirect lease financing | 37 | 43 | 3 | 63 | - | ||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | 522 | 558 | 63 | 495 | 5 | ||||||||||||||||||||
Home equity loans and lines | 266 | 304 | 70 | 293 | - | ||||||||||||||||||||
Consumer | 16 | 16 | 11 | 1 | - | ||||||||||||||||||||
$ | 27,617 | $ | 29,013 | $ | 2,022 | $ | 29,254 | $ | 560 | ||||||||||||||||
Troubled Debt Restructuring [Member] | |||||||||||||||||||||||||
Note 5 - Loans and Allowance for Loan Losses (Tables) [Line Items] | |||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | December 31, | 2014 | 2013 | ||||||||||||||||||||||
Recorded | Related | Recorded | Related | ||||||||||||||||||||||
investment | allowance | investment | allowance | ||||||||||||||||||||||
(balance) | (balance) | ||||||||||||||||||||||||
TDRs with no specific allowance recorded | $ | 4,588 | - | $ | 5,647 | - | |||||||||||||||||||
TDRs with an allowance recorded | 999 | $ | 813 | 2,914 | $ | 1,395 | |||||||||||||||||||
$ | 5,587 | $ | 813 | $ | 8,561 | $ | 1,395 | ||||||||||||||||||
Total Retail Loans [Member] | |||||||||||||||||||||||||
Note 5 - Loans and Allowance for Loan Losses (Tables) [Line Items] | |||||||||||||||||||||||||
Financing Receivable Credit Quality Indicators [Table Text Block] | |||||||||||||||||||||||||
31-Dec-14 | Performing | Non-performing | Total | ||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | $ | 36,922 | $ | 225 | $ | 37,147 | |||||||||||||||||||
Home equity loans and lines | 63,109 | 104 | 63,213 | ||||||||||||||||||||||
Consumer | 4,174 | 1 | 4,175 | ||||||||||||||||||||||
$ | 104,205 | $ | 330 | $ | 104,535 | ||||||||||||||||||||
31-Dec-13 | Performing | Non-performing | Total | ||||||||||||||||||||||
Retail: | |||||||||||||||||||||||||
1-4 family residential mortgages | $ | 29,329 | $ | 401 | $ | 29,730 | |||||||||||||||||||
Home equity loans and lines | 59,712 | 265 | 59,977 | ||||||||||||||||||||||
Consumer | 3,099 | 17 | 3,116 | ||||||||||||||||||||||
$ | 92,140 | $ | 683 | $ | 92,823 |
Note_6_Premises_and_Equipment_
Note 6 - Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | |||||||||
December 31, | 2014 | 2013 | |||||||
Land and buildings | $ | 11,138 | $ | 10,763 | |||||
Furniture and equipment | 12,576 | 12,022 | |||||||
Leasehold improvements | 2,313 | 2,304 | |||||||
Book value | 26,027 | 25,089 | |||||||
Accumulated depreciation and amortization | (16,325 | ) | (15,214 | ) | |||||
Net book value | $ | 9,702 | $ | 9,875 |
Note_7_Intangible_Assets_and_L1
Note 7 - Intangible Assets and Loan Servicing (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Servicing Asset at Amortized Cost [Table Text Block] | |||||||||
Year ended December 31, | 2014 | 2013 | |||||||
Balance at beginning of year | $ | 519 | $ | 448 | |||||
Mortgage servicing rights capitalized | 48 | 126 | |||||||
Mortgage servicing rights amortized | (71 | ) | (92 | ) | |||||
Fair market value adjustments | 8 | 37 | |||||||
Balance at end of year | $ | 504 | $ | 519 | |||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | |||||||||
2015 | $ | 92 | |||||||
2016 | 76 | ||||||||
2017 | 63 | ||||||||
2018 | 52 | ||||||||
2019 | 43 |
Note_8_Time_Deposits_Tables
Note 8 - Time Deposits (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure Text Block [Abstract] | |||||
Schedule of Maturities of Time Deposits [Table Text Block] | |||||
2015 | $ | 115,347 | |||
2016 | 49,873 | ||||
2017 | 34,615 | ||||
2018 | 23,019 | ||||
2019 | 20,393 | ||||
Thereafter | - | ||||
Total time deposits | $ | 243,247 |
Note_9_ShortTerm_Borrowings_Ta
Note 9 - Short-Term Borrowings (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Schedule of Short-term Debt [Table Text Block] | |||||||||
December 31, | Securities sold under agreements to repurchase (a) | Other short-term | |||||||
borrowings(b) | |||||||||
2014 | |||||||||
Balance | $ | 35,189 | $ | - | |||||
Maximum indebtedness at any month end | 35,189 | - | |||||||
Daily average indebtedness outstanding | 29,574 | 2,042 | |||||||
Average rate paid for the year | 0.37 | % | 0.3 | % | |||||
Average rate on period-end borrowings | 0.37 | - | |||||||
2013 | |||||||||
Balance | $ | 35,156 | $ | - | |||||
Maximum indebtedness at any month end | 35,156 | - | |||||||
Daily average indebtedness outstanding | 29,684 | 59 | |||||||
Average rate paid for the year | 0.37 | % | 0.21 | % | |||||
Average rate on period-end borrowings | 0.37 | - |
Note_10_LongTerm_Debt_Tables
Note 10 - Long-Term Debt (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||||
Schedule of Long-term Debt Instruments [Table Text Block] | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Maturity date | Balance | Weighted | Balance | Weighted | |||||||||||||
average rate | average rate | ||||||||||||||||
2014 | $ | - | - | $ | 5,000 | 1 | 4.77 | % |
Note_11_Income_Taxes_Tables
Note 11 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | |||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||
Current Federal income taxes | $ | 2,276 | $ | 2,134 | |||||||||||||
Deferred Federal income taxes | 368 | 212 | |||||||||||||||
Net provision | $ | 2,644 | $ | 2,346 | |||||||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | |||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||
Deferred tax assets | |||||||||||||||||
Allowance for loan losses | $ | 2,720 | $ | 3,035 | |||||||||||||
Net unrealized holding losses on investment securities available-for-sale | - | 1,456 | |||||||||||||||
Impaired securities | 477 | 546 | |||||||||||||||
Non-credit OTTI on investment securities available-for-sale | 204 | 302 | |||||||||||||||
Non-accrual interest income | 446 | 569 | |||||||||||||||
OREO expenses | 44 | 41 | |||||||||||||||
Deferred rent | 64 | 55 | |||||||||||||||
Deferred revenue | 27 | 33 | |||||||||||||||
Incurred but not reported (IBNR) medical expense | 39 | 24 | |||||||||||||||
Other | 48 | 13 | |||||||||||||||
Total deferred tax assets | 4,069 | 6,074 | |||||||||||||||
Deferred tax liabilities | |||||||||||||||||
Depreciation | 90 | 231 | |||||||||||||||
Mortgage servicing rights | 171 | 176 | |||||||||||||||
Net unrealized holding gains on investment securities available-for-sale | 671 | - | |||||||||||||||
Prepaid expenses | 188 | 149 | |||||||||||||||
Other | 24 | - | |||||||||||||||
Total deferred tax liabilities | 1,144 | 556 | |||||||||||||||
Net deferred tax asset | $ | 2,925 | $ | 5,518 | |||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | |||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||
Dollar | % | Dollar | % | ||||||||||||||
Provision at statutory rate | $ | 3,958 | 34 | % | $ | 3,651 | 34 | % | |||||||||
Tax-exempt interest and dividend income | (1,212 | ) | (10.4 | ) | (1,249 | ) | (11.7 | ) | |||||||||
Bank-owned life insurance | (106 | ) | (0.9 | ) | (109 | ) | (1.0 | ) | |||||||||
Life insurance proceeds | (54 | ) | (0.5 | ) | - | - | |||||||||||
Stock-based compensation expense | 28 | 0.2 | 24 | 0.2 | |||||||||||||
Other | 30 | 0.3 | 29 | 0.3 | |||||||||||||
Total provision | $ | 2,644 | 22.7 | % | $ | 2,346 | 21.8 | % |
Note_12_Employee_Benefit_Plans1
Note 12 - Employee Benefit Plans (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Disclosure Text Block Supplement [Abstract] | |||
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block] | |||
Year ended December 31, | 2014 | 2013 | |
Shares | 3,239 | 3,692 | |
Price per share | $22.32 and $23.40 | $20.88 and $21.74 |
Note_13_Stock_Option_Plan_Tabl
Note 13 - Stock Option Plan (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | |||||||||||||||||||||
Number | Weighted | Weighted average remaining contractual term | Aggregate | ||||||||||||||||||
of options | average | (in years) | intrinsic value | ||||||||||||||||||
exercise price | |||||||||||||||||||||
Outstanding at December 31, 2012 | 128,225 | $ | 22.72 | ||||||||||||||||||
Exercised | (29,825 | ) | 20.23 | ||||||||||||||||||
Forfeited | (2,600 | ) | 19.79 | ||||||||||||||||||
Granted | 20,000 | 23.2 | |||||||||||||||||||
Outstanding at December 31, 2013 | 115,800 | 23.51 | |||||||||||||||||||
Exercised | (20,050 | ) | 17.82 | ||||||||||||||||||
Forfeited | (27,375 | ) | 29.66 | ||||||||||||||||||
Granted | 20,000 | 25.16 | |||||||||||||||||||
Outstanding at December 31, 2014 | 88,375 | $ | 23.27 | 1.97 | $ | 509 | |||||||||||||||
Exercisable at December 31, 2014 | 38,700 | $ | 23.29 | 0.54 | $ | 248 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | |||||||||||||||||||||
Options outstanding | Exercise price | Remaining life | Options exercisable | Exercise price | |||||||||||||||||
(in years) | |||||||||||||||||||||
9,600 | $ | 17.25 | 0.13 | 9,600 | $ | 17.25 | |||||||||||||||
2,000 | 19.76 | 0.69 | 2,000 | 19.76 | |||||||||||||||||
12,550 | 20 | 1.07 | 12,550 | 20 | |||||||||||||||||
16,175 | 21.35 | 2.07 | - | - | |||||||||||||||||
2,500 | 22.11 | 1.66 | 2,500 | 22.11 | |||||||||||||||||
16,850 | 23.2 | 3.06 | - | - | |||||||||||||||||
16,650 | 25.16 | 4.08 | - | - | |||||||||||||||||
12,050 | 32.35 | 0.05 | 12,050 | 32.35 | |||||||||||||||||
Outstanding at December 31, 2014 | 88,375 | $ | 23.27 | 1.97 | 38,700 | $ | 23.29 | ||||||||||||||
Schedule of Tax Benefits and Intrinsic Value Related to Exercisesd Stock Options [Table Text Block] | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Tax benefits related to stock options exercised | $ | 29 | $ | 2 | |||||||||||||||||
Intrinsic value of stock options exercised | 161 | 91 |
Note_14_Related_Party_Transact1
Note 14 - Related Party Transactions (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Related Party Transactions [Abstract] | |||||
Schedule of Related Party Transactions [Table Text Block] | |||||
Balance, December 31, 2013 | $ | 2,817 | |||
New Loans | 10,360 | ||||
New Loans - New Director Appointed | 8,110 | ||||
Retired Loans - Executive Resigination | (45 | ) | |||
Repayments | (9,025 | ) | |||
Balance, December 31, 2014 | $ | 12,217 |
Note_15_Commitments_and_Contin1
Note 15 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | |||||||||
December 31, | 2014 | 2013 | |||||||
Commitments to extend credit and unused lines of credit | $ | 203,496 | $ | 186,137 | |||||
Standby letters of credit | 6,276 | 5,311 | |||||||
Total financial instrument commitments | $ | 209,772 | $ | 191,448 | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | |||||||||
Minimum lease payments | |||||||||
2015 | $ | 477 | |||||||
2016 | 477 | ||||||||
2017 | 423 | ||||||||
2018 | 368 | ||||||||
2019 | 341 | ||||||||
Thereafter | 3,276 |
Note_16_Accumulated_Other_Comp1
Note 16 - Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Disclosure Text Block [Abstract] | ||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ||||||||||
Year ended December 31, | 2014 | 2013 | ||||||||
Unrealized net holding gains (losses) on available-for-sale securities | $ | 1,975 | $ | (4,281 | ) | |||||
Unrealized losses on available-for-sale securities for which a portion of an other-than-temporary impairment loss has been recognized in earnings | (600 | ) | (889 | ) | ||||||
Accumulated other comprehensive income (loss) | 1,375 | (5,170 | ) | |||||||
Tax effect | (468 | ) | 1,758 | |||||||
Accumulated other comprehensive income (loss), net of tax | $ | 907 | $ | (3,412 | ) | |||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Amount reclassified from | |||||||||
accumulated other | ||||||||||
comprehensive income | ||||||||||
Details about accumulated other comprehensive income | 2014 | 2013 | Affected line item in the statement of income | |||||||
Unrealized net holding gains on available-for-sale securities | $ | 1,112 | $ | 867 | Net gain on sale of investment securities | |||||
Other-than-temporary impairment losses on investment securities | - | (43 | ) | Net other-than-temporary impairment losses on investment securities | ||||||
1,112 | 824 | |||||||||
Tax effect | (378 | ) | (280 | ) | Provision for income taxes | |||||
Total reclass out of accumulated other comprehensive income, net of tax | $ | 734 | $ | 544 | Net of tax |
Note_17_Fair_Value_Measurement1
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | |||||||||||||||||||||
31-Dec-14 | Quoted prices in active markets for identical assets (Level 1) | Significant other observable input (Level 2) | Significant unobservable inputs (Level 3) | Balance at end of period | |||||||||||||||||
Recurring fair value measurements | |||||||||||||||||||||
Trading Securities | |||||||||||||||||||||
State and municipal | - | $ | 4,207 | - | $ | 4,207 | |||||||||||||||
Securities available-for-sale | |||||||||||||||||||||
U.S. Government agency | - | 62,665 | - | 62,665 | |||||||||||||||||
State and municipal | - | 72,569 | - | 72,569 | |||||||||||||||||
U.S. Government agencies and sponsored enterprises (GSEs): | |||||||||||||||||||||
Mortgage-backed | - | 136,192 | - | 136,192 | |||||||||||||||||
Collateralized mortgage obligations (CMOs) | - | 87,662 | - | 87,662 | |||||||||||||||||
Pooled trust preferred | - | - | $ | 2,439 | 2,439 | ||||||||||||||||
Corporate debt | - | 6,037 | - | 6,037 | |||||||||||||||||
Equity | $ | 7,655 | - | - | 7,655 | ||||||||||||||||
Total securities available-for-sale | $ | 7,655 | $ | 365,125 | $ | 2,439 | $ | 375,219 | |||||||||||||
Total recurring fair value measurements | $ | 7,655 | $ | 369,332 | $ | 2,439 | $ | 379,426 | |||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||||||
Impaired loans | $ | - | $ | - | $ | 3,715 | $ | 3,715 | |||||||||||||
Mortgage servicing rights | - | - | 112 | 112 | |||||||||||||||||
Total nonrecurring fair value measurements | $ | - | $ | - | $ | 3,827 | $ | 3,827 | |||||||||||||
31-Dec-13 | Quoted prices in active markets for identical assets (Level 1) | Significant other observable input (Level 2) | Significant unobservable inputs (Level 3) | Balance at end of period | |||||||||||||||||
Recurring fair value measurements | |||||||||||||||||||||
Securities available-for-sale | |||||||||||||||||||||
U.S. Government agency | - | $ | 71,639 | - | $ | 71,639 | |||||||||||||||
State and municipal | - | 87,199 | - | 87,199 | |||||||||||||||||
U.S. Government agencies and sponsored enterprises (GSEs): | |||||||||||||||||||||
Mortgage-backed | - | 139,723 | - | 139,723 | |||||||||||||||||
Collateralized mortgage obligations (CMOs) | - | 75,394 | - | 75,394 | |||||||||||||||||
Pooled trust preferred | - | - | $ | 2,069 | 2,069 | ||||||||||||||||
Corporate debt | - | 6,021 | - | 6,021 | |||||||||||||||||
Equity | $ | 6,625 | - | - | 6,625 | ||||||||||||||||
Total securities available-for-sale | $ | 6,625 | $ | 379,976 | $ | 2,069 | $ | 388,670 | |||||||||||||
Total recurring fair value measurements | $ | 6,625 | $ | 379,976 | $ | 2,069 | $ | 388,670 | |||||||||||||
Nonrecurring fair value measurements | |||||||||||||||||||||
Impaired loans | $ | - | $ | - | $ | 3,107 | $ | 3,107 | |||||||||||||
Mortgage servicing rights | - | - | 192 | 192 | |||||||||||||||||
Total nonrecurring fair value measurements | $ | - | $ | - | $ | 3,299 | $ | 3,299 | |||||||||||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | |||||||||||||||||||||
Quantitative information about Level 3 fair value measurements | |||||||||||||||||||||
Fair value | Valuation techniques | Unobservable input | Value or range of values | ||||||||||||||||||
December 31, 2014 - Impaired loans | $ | 953 | Appraisal of collateral (1) | Appraisal adjustments (2) | -20% to -100 | % | |||||||||||||||
Liquidation expenses (3) | -10 | % | |||||||||||||||||||
December 31, 2014 - Impaired loans | $ | 112 | Discounted cash flow (4) | Discount rate | 6.375 | % | |||||||||||||||
December 31, 2014 - Impaired loans | $ | 2,650 | Agreement of sale (5) | ||||||||||||||||||
December 31, 2014 - Mortgage servicing rights | $ | 112 | Discounted cash flow | Remaining term | 2 - 28 yrs | ||||||||||||||||
Discount rate | 10% to 12 | % | |||||||||||||||||||
December 31, 2013 - Impaired loans | $ | 3,107 | Appraisal of collateral (1) | Appraisal adjustments (2) | -10% to -30 | % | |||||||||||||||
Liquidation expenses (3) | 0%-10 | % | |||||||||||||||||||
December 31, 2013 - Mortgage servicing rights | $ | 192 | Discounted cash flow | Remaining term | 3 - 29 yrs | ||||||||||||||||
Discount rate | 10% to 12 | % | |||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | |||||||||||||||||||||
Fair value measurements using | |||||||||||||||||||||
significant unobservable inputs | |||||||||||||||||||||
(Level 3) | |||||||||||||||||||||
Securities available-for-sale | 2014 | 2013 | |||||||||||||||||||
Balance, beginning of year | $ | 2,069 | $ | 1,962 | |||||||||||||||||
Settlements | - | - | |||||||||||||||||||
Total gains or losses (realized/unrealized) | |||||||||||||||||||||
Included in earnings | - | - | |||||||||||||||||||
Included in other comprehensive income | 370 | 107 | |||||||||||||||||||
Transfers in and/or out of Level 3 | - | - | |||||||||||||||||||
Balance, end of year | $ | 2,439 | $ | 2,069 | |||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | |||||||||||||||||||||
Fair value measurements | |||||||||||||||||||||
31-Dec-14 | Carrying | Fair value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||
amount | (Level 2) | (Level 3) | |||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 18,245 | $ | 18,245 | $ | 18,245 | - | - | |||||||||||||
Investment securities: | |||||||||||||||||||||
Trading | 4,207 | 4,207 | - | $ | 4,207 | - | |||||||||||||||
Available-for-sale | 375,219 | 375,219 | 7,655 | 365,125 | $ | 2,439 | |||||||||||||||
Held-to-maturity | 146 | 156 | - | 156 | - | ||||||||||||||||
Restricted investment in bank stocks | 647 | 647 | - | 647 | - | ||||||||||||||||
Loans held-for-sale | 380 | 394 | - | 394 | - | ||||||||||||||||
Net loans | 547,281 | 544,126 | - | - | 544,126 | ||||||||||||||||
Mortgage servicing rights | 504 | 601 | - | - | 601 | ||||||||||||||||
Accrued interest receivable | 2,568 | 2,568 | - | 2,568 | - | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits with no stated maturities | $ | 608,345 | $ | 608,345 | $ | 608,345 | - | $ | - | ||||||||||||
Deposits with stated maturities | 243,247 | 244,152 | - | $ | 244,152 | - | |||||||||||||||
Short-term borrowings | 35,189 | 35,189 | 35,189 | - | - | ||||||||||||||||
Accrued interest payable | 344 | 344 | - | 344 | - | ||||||||||||||||
Off-balance sheet instruments | |||||||||||||||||||||
Commitments to extend credit | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Standby letters of credit | - | - | - | - | - | ||||||||||||||||
Fair value measurements | |||||||||||||||||||||
31-Dec-13 | Carrying | Fair value | Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||||
amount | (Level 2) | (Level 3) | |||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 16,286 | $ | 16,286 | $ | 16,286 | - | - | |||||||||||||
Investment securities: | |||||||||||||||||||||
Available-for-sale | 388,670 | 388,670 | 6,625 | $ | 379,976 | $ | 2,069 | ||||||||||||||
Held-to-maturity | 146 | 162 | - | 162 | - | ||||||||||||||||
Restricted investment in bank stocks | 1,764 | 1,764 | - | 1,764 | - | ||||||||||||||||
Net loans | 492,791 | 491,635 | - | - | 491,635 | ||||||||||||||||
Mortgage servicing rights | 519 | 643 | - | - | 643 | ||||||||||||||||
Accrued interest receivable | 2,579 | 2,579 | - | 2,579 | - | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits with no stated maturities | $ | 574,987 | $ | 574,987 | $ | 574,987 | - | $ | - | ||||||||||||
Deposits with stated maturities | 239,545 | 241,959 | - | $ | 241,959 | - | |||||||||||||||
Short-term borrowings | 35,156 | 35,156 | 35,156 | - | - | ||||||||||||||||
Long-term debt | 5,000 | 5,056 | - | 5,056 | - | ||||||||||||||||
Accrued interest payable | 392 | 392 | - | 392 | - | ||||||||||||||||
Off-balance sheet instruments | |||||||||||||||||||||
Commitments to extend credit | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Standby letters of credit | - | - | - | - | - |
Note_18_Parent_Company_Financi1
Note 18 - Parent Company Financial Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||
Condensed Balance Sheet [Table Text Block] | Balance Sheets | ||||||||||||||||||||||||
December 31, | 2014 | 2013 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 48 | $ | 24 | |||||||||||||||||||||
Investment securities available-for-sale | 7,655 | 6,625 | |||||||||||||||||||||||
Investment in subsidiary | 79,112 | 69,215 | |||||||||||||||||||||||
Other assets | 3 | 15 | |||||||||||||||||||||||
Total assets | $ | 86,818 | $ | 75,879 | |||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Other liabilities | $ | 464 | $ | 254 | |||||||||||||||||||||
Shareholders' equity | $ | 86,354 | $ | 75,625 | |||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 86,818 | $ | 75,879 | |||||||||||||||||||||
Condensed Income Statement [Table Text Block] | Statements of Income | ||||||||||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||||||||||
Dividends from subsidiary | $ | 2,925 | $ | 3,512 | |||||||||||||||||||||
Interest, dividend and other income | 142 | 99 | |||||||||||||||||||||||
Securities gains | 1,045 | 629 | |||||||||||||||||||||||
Total income | 4,112 | 4,240 | |||||||||||||||||||||||
Expenses | 313 | 285 | |||||||||||||||||||||||
Income before applicable income taxes and equity in undistributed income of subsidiary | 3,799 | 3,955 | |||||||||||||||||||||||
Provision for income taxes | 292 | 151 | |||||||||||||||||||||||
Income before equity in undistributed income of subsidiary | 3,507 | 3,804 | |||||||||||||||||||||||
Equity in undistributed income of subsidiary | 5,491 | 4,588 | |||||||||||||||||||||||
Net income | $ | 8,998 | $ | 8,392 | |||||||||||||||||||||
Comprehensive Income (Loss) [Table Text Block] | Statements of Comprehensive Income (Loss) | ||||||||||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||||||||||
Before | Tax | Net of | Before | Tax | Net of | ||||||||||||||||||||
tax | expense | tax | tax | expense | tax | ||||||||||||||||||||
amount | (benefit) | amount | amount | (benefit) | amount | ||||||||||||||||||||
Net income | $ | 11,642 | $ | 2,644 | $ | 8,998 | $ | 10,738 | $ | 2,346 | $ | 8,392 | |||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||
Net unrealized holding gains (losses) on securities: | |||||||||||||||||||||||||
Unrealized holding gains (losses) arising during the period | 7,657 | 2,604 | 5,053 | (11,098 | ) | (3,774 | ) | (7,324 | ) | ||||||||||||||||
Reclassification adjustment for gains included in net income | (1,112 | ) | (378 | ) | (734 | ) | (824 | ) | (280 | ) | (544 | ) | |||||||||||||
Other comprehensive income (loss) | 6,545 | 2,226 | 4,319 | (11,922 | ) | (4,054 | ) | (7,868 | ) | ||||||||||||||||
Total comprehensive income (loss) | $ | 18,187 | $ | 4,870 | $ | 13,317 | $ | (1,184 | ) | $ | (1,708 | ) | $ | 524 | |||||||||||
Condensed Cash Flow Statement [Table Text Block] | Statements of Cash Flows | ||||||||||||||||||||||||
Year ended December 31, | 2014 | 2013 | |||||||||||||||||||||||
Operating Activities | |||||||||||||||||||||||||
Net income | $ | 8,998 | $ | 8,392 | |||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||||
Equity in undistributed income from subsidiary | (5,491 | ) | (4,588 | ) | |||||||||||||||||||||
Net securities gains | (1,045 | ) | (629 | ) | |||||||||||||||||||||
Stock-based compensation expense | 83 | 71 | |||||||||||||||||||||||
Increase in other liabilities | 225 | - | |||||||||||||||||||||||
Decrease in other assets | 12 | 443 | |||||||||||||||||||||||
Deferred income tax provision | 29 | - | |||||||||||||||||||||||
Net cash provided by operating activities | 2,811 | 3,689 | |||||||||||||||||||||||
Investing activities | |||||||||||||||||||||||||
Purchase of investment securities | (4,955 | ) | (3,763 | ) | |||||||||||||||||||||
Proceeds from sale of investment securities | 4,839 | 2,589 | |||||||||||||||||||||||
Net cash used by investing activities | (116 | ) | (1,174 | ) | |||||||||||||||||||||
Financing activities | |||||||||||||||||||||||||
Cash dividend paid | (3,328 | ) | (3,130 | ) | |||||||||||||||||||||
Proceeds from issuance of common stock | 628 | 535 | |||||||||||||||||||||||
Tax benefit from exercise of stock options | 29 | 2 | |||||||||||||||||||||||
Net cash used by financing activities | (2,671 | ) | (2,593 | ) | |||||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 24 | (78 | ) | ||||||||||||||||||||||
Cash and cash equivalents at beginning of year | 24 | 102 | |||||||||||||||||||||||
Cash and cash equivalents at end of year | $ | 48 | $ | 24 |
Note_19_Regulatory_Restriction1
Note 19 - Regulatory Restrictions (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | |||||||||||||||||||||||||
Capital levels | |||||||||||||||||||||||||
Actual | Adequately capitalized | Well capitalized | |||||||||||||||||||||||
As of December 31, 2014 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total risk-based capital (to risk-weighted assets): | |||||||||||||||||||||||||
Consolidated | $ | 93,927 | 14.06 | % | $ | 53,425 | 8 | % | N/A | N/A | |||||||||||||||
Bank | 86,884 | 13.14 | 52,891 | 8 | $ | 66,114 | 10 | % | |||||||||||||||||
Tier 1 capital (to risk-weighted assets): | |||||||||||||||||||||||||
Consolidated | 85,439 | 12.79 | 26,713 | 4 | N/A | N/A | |||||||||||||||||||
Bank | 78,824 | 11.92 | 26,446 | 4 | 39,669 | 6 | |||||||||||||||||||
Tier 1 capital (to average assets): | |||||||||||||||||||||||||
Consolidated | 85,439 | 8.65 | 39,501 | 4 | N/A | N/A | |||||||||||||||||||
Bank | 78,824 | 8.04 | 39,237 | 4 | 49,047 | 5 | |||||||||||||||||||
Capital levels | |||||||||||||||||||||||||
Actual | Adequately capitalized | Well capitalized | |||||||||||||||||||||||
As of December 31, 2013 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total risk-based capital (to risk-weighted assets): | |||||||||||||||||||||||||
Consolidated | $ | 87,330 | 14.01 | % | $ | 49,871 | 8 | % | N/A | N/A | |||||||||||||||
Bank | 81,076 | 13.13 | 49,402 | 8 | $ | 61,753 | 10 | % | |||||||||||||||||
Tier 1 capital (to risk-weighted assets): | |||||||||||||||||||||||||
Consolidated | 79,037 | 12.68 | 24,936 | 4 | N/A | N/A | |||||||||||||||||||
Bank | 73,342 | 11.88 | 24,701 | 4 | 37,052 | 6 | |||||||||||||||||||
Tier 1 capital (to average assets): | |||||||||||||||||||||||||
Consolidated | 79,037 | 8.45 | 37,419 | 4 | N/A | N/A | |||||||||||||||||||
Bank | 73,342 | 7.88 | 37,215 | 4 | 46,518 | 5 |
Note_20_Consolidated_Quarterly1
Note 20 - Consolidated Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | Quarters Ended 2014 | Quarters Ended 2013 | |||||||||||||||||||||||||||||||
31-Mar | 30-Jun | Sept. 30 | Dec. 31 | 31-Mar | 30-Jun | Sept. 30 | Dec. 31 | ||||||||||||||||||||||||||
Interest income | $ | 7,527 | $ | 7,588 | $ | 7,741 | $ | 7,814 | $ | 7,676 | $ | 7,624 | $ | 7,678 | $ | 7,606 | |||||||||||||||||
Interest expense | 1,134 | 1,091 | 1,156 | 1,163 | 1,343 | 1,288 | 1,226 | 1,176 | |||||||||||||||||||||||||
Net interest income | 6,393 | 6,497 | 6,585 | 6,651 | 6,333 | 6,336 | 6,452 | 6,430 | |||||||||||||||||||||||||
Provision for loan losses | - | - | - | 400 | - | 100 | 150 | 150 | |||||||||||||||||||||||||
Non-interest income | 1,812 | 1,625 | 1,517 | 2,588 | 1,748 | 1,239 | 1,553 | 1,273 | |||||||||||||||||||||||||
Non-interest expense | 5,212 | 5,314 | 5,478 | 5,622 | 4,940 | 5,091 | 5,123 | 5,072 | |||||||||||||||||||||||||
Income before income taxes | 2,993 | 2,808 | 2,624 | 3,217 | 3,141 | 2,384 | 2,732 | 2,481 | |||||||||||||||||||||||||
Provision for income taxes | 697 | 636 | 580 | 731 | 733 | 490 | 604 | 519 | |||||||||||||||||||||||||
Net Income | $ | 2,296 | $ | 2,172 | $ | 2,044 | $ | 2,486 | $ | 2,408 | $ | 1,894 | $ | 2,128 | $ | 1,962 | |||||||||||||||||
Earnings Per Share - basic * | $ | 0.7 | $ | 0.66 | $ | 0.62 | $ | 0.75 | $ | 0.75 | $ | 0.58 | $ | 0.65 | $ | 0.6 | |||||||||||||||||
Earnings Per Share - diluted * | $ | 0.7 | $ | 0.66 | $ | 0.62 | $ | 0.75 | $ | 0.74 | $ | 0.58 | $ | 0.65 | $ | 0.6 |
Note_1_Summary_of_Significant_2
Note 1 - Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | $29,972,000 | $19,559,000 |
Trading Securities | 4,207,000 | 0 |
Restricted Investments | 647,000 | 1,764,000 |
Other Postretirement Benefit Expense | 21,000 | 19,000 |
Allocated Share-based Compensation Expense | 83,000 | 71,000 |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $3.81 | $4.52 |
Unrecognized Tax Benefits | 0 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 0 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | 5,000,000 | |
Trading Securities | 4,207,000 | |
Building [Member] | Minimum [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Building [Member] | Maximum [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Brokerage Account [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Cash, Cash Equivalents, and Short-term Investments | 1,160,000 | |
Investment in Federal Home Loan Bank Stock [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Restricted Investments | 635,000 | |
Investment in Atlantic Community Bankers Bank Stock [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Restricted Investments | 12,000 | |
Other Assets [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ||
Other Real Estate, Foreclosed Assets, and Repossessed Assets | $3,025,000 | $2,825,000 |
Note_1_Summary_of_Significant_3
Note 1 - Summary of Significant Accounting Policies (Details) - Assumptions Utilized for Stock Option Grants | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Assumptions Utilized for Stock Option Grants [Abstract] | ||
Risk free interest rate | 0.69% | 0.35% |
Dividend yield | 4.28% | 4.26% |
Volatility | 28.10% | 34.10% |
Expected life (years) | 5 years | 5 years |
Note_2_Earnings_Per_Share_and_2
Note 2 - Earnings Per Share and Share Repurchase Plan (Details) (USD $) | 12 Months Ended | 71 Months Ended | 83 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Feb. 09, 2009 | Jan. 24, 2008 | |
Note 2 - Earnings Per Share and Share Repurchase Plan (Details) [Line Items] | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 100,000 | 50,000 | ||||
Equity Option [Member] | ||||||
Note 2 - Earnings Per Share and Share Repurchase Plan (Details) [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 28,700 | 49,800 | ||||
Share Repurchase Program [Member] | ||||||
Note 2 - Earnings Per Share and Share Repurchase Plan (Details) [Line Items] | ||||||
Treasury Stock, Shares, Acquired | 0 | 0 | 57,883 | 57,883 | ||
Treasury Stock Acquired, Average Cost Per Share (in Dollars per share) | $16.97 | $16.97 | ||||
Treasury Stock, Value, Acquired, Cost Method (in Dollars) | $982,000 | $982,000 |
Note_2_Earnings_Per_Share_and_3
Note 2 - Earnings Per Share and Share Repurchase Plan (Details) - Computation of Basic and Diluted Earnings Per Share (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||
Computation of Basic and Diluted Earnings Per Share [Abstract] | ||||||||||||||||||
Numerator for basic and diluted earnings per share - net income (in Dollars) | $2,486 | $2,044 | $2,172 | $2,296 | $1,962 | $2,128 | $1,894 | $2,408 | $8,998 | $8,392 | ||||||||
Denominator for basic earnings per share - weighted average shares outstanding | 3,291,939 | 3,248,397 | ||||||||||||||||
Effect of dilutive securities - employee stock options | 10,635 | 11,678 | ||||||||||||||||
Denominator for diluted earnings per share - adjusted weighted average shares outstanding | 3,302,574 | 3,260,075 | ||||||||||||||||
Earnings per share - basic (in Dollars per share) | $0.75 | [1] | $0.62 | [1] | $0.66 | [1] | $0.70 | [1] | $0.60 | [1] | $0.65 | [1] | $0.58 | [1] | $0.75 | [1] | $2.73 | $2.58 |
Earnings per share - diluted (in Dollars per share) | $0.75 | [1] | $0.62 | [1] | $0.66 | [1] | $0.70 | [1] | $0.60 | [1] | $0.65 | [1] | $0.58 | [1] | $0.74 | [1] | $2.72 | $2.57 |
[1] | Due to rounding, quarterly earnings per share may not sum to annual earnings per share |
Note_4_Investment_Securities_D
Note 4 - Investment Securities (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2014 | Oct. 31, 2014 | |
Note 4 - Investment Securities (Details) [Line Items] | ||||
Net Realized and Unrealized Gain (Loss) on Trading Securities | $156,000 | |||
Trading Securities, Change in Unrealized Holding Gain (Loss) | 24,000 | |||
Trading Securities | 4,207,000 | 0 | ||
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | 29,972,000 | 19,559,000 | ||
Income Tax Expense (Benefit) Related to Net Realized Gains (Losses) On Sales of Securities | 378,000 | 280,000 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, No Previous Impairment | 0 | 0 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, Additional Credit Losses | 0 | 0 | ||
Available-for-sale Securities | 375,219,000 | 388,670,000 | ||
Proceeds from Sale of Held-to-maturity Securities | 0 | 0 | ||
Available-for-sale Securities Pledged as Collateral | 206,774,000 | 207,868,000 | ||
Available-for-sale Securities, Amortized Cost Basis | 373,844,000 | 393,840,000 | ||
Fair Value Inputs, Prepayment Rate | 1.00% | |||
Threshold for Identifying Banks with Trust Preferred Securities | 15,000,000,000 | |||
Minimum Cost Saving for Refinance | 2.00% | |||
Bank Failure Rate | 0.36% | |||
Fair Value Inputs, Loss Severity | 95.00% | |||
PreTSL V [Member] | ||||
Note 4 - Investment Securities (Details) [Line Items] | ||||
Gain (Loss) on Sale of Securities, Net | 56,000 | |||
Available-for-sale Securities | 0 | |||
Collateralized Debt Obligations [Member] | Minimum [Member] | ||||
Note 4 - Investment Securities (Details) [Line Items] | ||||
Fair Value Inputs, Loss Severity | 0.00% | |||
Collateralized Debt Obligations [Member] | Maximum [Member] | ||||
Note 4 - Investment Securities (Details) [Line Items] | ||||
Fair Value Inputs, Loss Severity | 100.00% | |||
Collateralized Debt Obligations [Member] | ||||
Note 4 - Investment Securities (Details) [Line Items] | ||||
Available-for-sale Securities | 2,439,000 | 2,069,000 | ||
Number of Trust Preferred Securities | 6 | |||
Available-for-sale Securities, Amortized Cost Basis | $3,519,000 | $3,519,000 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | 5 |
Note_4_Investment_Securities_D1
Note 4 - Investment Securities (Details) - Trading Securities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
State and municipal | $4,207,000 | $0 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
State and municipal | $4,207,000 |
Note_4_Investment_Securities_D2
Note 4 - Investment Securities (Details) - Investment Securities Available-for-sale (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale | $375,219,000 | $388,670,000 |
Investment securities available-for-sale, gross unrealized holding gains | 5,073,000 | 4,446,000 |
Investment securities available-for-sale, gross unrealized holding losses | -3,698,000 | -9,616,000 |
Investment securities available-for-sale, amortized cost | 373,844,000 | 393,840,000 |
US Government Agencies Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale | 62,665,000 | 71,639,000 |
Investment securities available-for-sale, gross unrealized holding gains | 212,000 | 195,000 |
Investment securities available-for-sale, gross unrealized holding losses | -472,000 | -1,702,000 |
Investment securities available-for-sale, amortized cost | 62,925,000 | 73,146,000 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale | 72,569,000 | 87,199,000 |
Investment securities available-for-sale, gross unrealized holding gains | 1,500,000 | 1,023,000 |
Investment securities available-for-sale, gross unrealized holding losses | -150,000 | -1,627,000 |
Investment securities available-for-sale, amortized cost | 71,219,000 | 87,803,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale | 136,192,000 | 139,723,000 |
Investment securities available-for-sale, gross unrealized holding gains | 1,819,000 | 1,436,000 |
Investment securities available-for-sale, gross unrealized holding losses | -466,000 | -2,361,000 |
Investment securities available-for-sale, amortized cost | 134,839,000 | 140,648,000 |
Collateralized Mortgage Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale | 87,662,000 | 75,394,000 |
Investment securities available-for-sale, gross unrealized holding gains | 330,000 | 556,000 |
Investment securities available-for-sale, gross unrealized holding losses | -1,300,000 | -2,334,000 |
Investment securities available-for-sale, amortized cost | 88,632,000 | 77,172,000 |
Collateralized Debt Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale | 2,439,000 | 2,069,000 |
Investment securities available-for-sale, gross unrealized holding gains | 160,000 | 85,000 |
Investment securities available-for-sale, gross unrealized holding losses | -1,240,000 | -1,535,000 |
Investment securities available-for-sale, amortized cost | 3,519,000 | 3,519,000 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale | 6,037,000 | 6,021,000 |
Investment securities available-for-sale, gross unrealized holding gains | 30,000 | 24,000 |
Investment securities available-for-sale, gross unrealized holding losses | -13,000 | |
Investment securities available-for-sale, amortized cost | 6,007,000 | 6,010,000 |
Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investment securities available-for-sale | 7,655,000 | 6,625,000 |
Investment securities available-for-sale, gross unrealized holding gains | 1,022,000 | 1,127,000 |
Investment securities available-for-sale, gross unrealized holding losses | -70,000 | -44,000 |
Investment securities available-for-sale, amortized cost | $6,703,000 | $5,542,000 |
Note_4_Investment_Securities_D3
Note 4 - Investment Securities (Details) - Investment Securities by Contractual Maturity (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment Securities by Contractual Maturity [Abstract] | ||
Due in one year or less | $9,269 | |
Due in one year or less | 9,170 | |
Due after one year through five years | 260,683 | |
Due after one year through five years | 260,108 | |
Due after five years through ten years | 73,771 | |
Due after five years through ten years | 73,496 | |
Due after ten years | 23,841 | |
Due after ten years | 24,367 | |
Equity securities | 7,655 | |
Equity securities | 6,703 | |
Total investment securities available-for-sale | 375,219 | 388,670 |
Total investment securities available-for-sale | 373,844 | 393,840 |
Due after one year through five years | 156 | |
Due after one year through five years | 146 | |
Total investment securities held-to-maturity | 156 | 162 |
Total investment securities held-to-maturity | $146 | $146 |
Note_4_Investment_Securities_D4
Note 4 - Investment Securities (Details) - Gross Realized Losses on Equity and Debt Securities (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Note 4 - Investment Securities (Details) - Gross Realized Losses on Equity and Debt Securities [Line Items] | ||
Gross realized gains | $1,361 | $868 |
Gross realized losses | -249 | -1 |
Other-than-temporary impairment losses | -43 | |
Net gains | 1,112 | 824 |
Equity Securities [Member] | ||
Note 4 - Investment Securities (Details) - Gross Realized Losses on Equity and Debt Securities [Line Items] | ||
Gross realized gains | 1,051 | 672 |
Gross realized losses | -6 | |
Other-than-temporary impairment losses | -43 | |
Net gains | 1,045 | 629 |
Debt Securities [Member] | ||
Note 4 - Investment Securities (Details) - Gross Realized Losses on Equity and Debt Securities [Line Items] | ||
Gross realized gains | 310 | 196 |
Gross realized losses | -243 | -1 |
Net gains | $67 | $195 |
Note_4_Investment_Securities_D5
Note 4 - Investment Securities (Details) - Credit-Related Other-Than-Temporary Impairment (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Credit-Related Other-Than-Temporary Impairment [Abstract] | ||
Balance, beginning of year | $1,271 | $1,271 |
Reductions: sale, collateralized debt obligation | -118 | 0 |
Balance, end of year | $1,153 | $1,271 |
Note_4_Investment_Securities_D6
Note 4 - Investment Securities (Details) - Investment Securities Held-to-maturity (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
State and municipal | $146 | $146 |
State and municipal | 156 | 162 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
State and municipal | 146 | 146 |
State and municipal | 10 | 16 |
State and municipal | $156 | $162 |
Note_4_Investment_Securities_D7
Note 4 - Investment Securities (Details) - Securities in a Continuous Unrealized Loss Position (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 4 - Investment Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
No. of securities | 165 | 240 |
Securities in an unrealized loss position less than 12 months, fair value | $28,745 | $200,036 |
Securities in an unrealized loss position less than 12 months, unrealized losses | -351 | -6,615 |
Securities in an unrealized loss position 12 months or longer, fair value | 112,156 | 29,404 |
Securities in an unrealized loss position 12 months or longer, unrealized losses | -3,347 | -3,001 |
Securities in an unrealized loss position, fair value | 140,901 | 229,440 |
Securities in an unrealized loss position, unrealized losses | -3,698 | -9,616 |
US Government Agencies Debt Securities [Member] | ||
Note 4 - Investment Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
No. of securities | 29 | 44 |
Securities in an unrealized loss position less than 12 months, fair value | 15,466 | 54,563 |
Securities in an unrealized loss position less than 12 months, unrealized losses | -30 | -1,548 |
Securities in an unrealized loss position 12 months or longer, fair value | 23,941 | 2,846 |
Securities in an unrealized loss position 12 months or longer, unrealized losses | -442 | -154 |
Securities in an unrealized loss position, fair value | 39,407 | 57,409 |
Securities in an unrealized loss position, unrealized losses | -472 | -1,702 |
US States and Political Subdivisions Debt Securities [Member] | ||
Note 4 - Investment Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
No. of securities | 39 | 87 |
Securities in an unrealized loss position less than 12 months, fair value | 3,452 | 33,750 |
Securities in an unrealized loss position less than 12 months, unrealized losses | -31 | -1,379 |
Securities in an unrealized loss position 12 months or longer, fair value | 11,964 | 4,288 |
Securities in an unrealized loss position 12 months or longer, unrealized losses | -119 | -248 |
Securities in an unrealized loss position, fair value | 15,416 | 38,038 |
Securities in an unrealized loss position, unrealized losses | -150 | -1,627 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Note 4 - Investment Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
No. of securities | 34 | 54 |
Securities in an unrealized loss position less than 12 months, fair value | 6,521 | 75,720 |
Securities in an unrealized loss position less than 12 months, unrealized losses | -15 | -2,238 |
Securities in an unrealized loss position 12 months or longer, fair value | 38,586 | 1,884 |
Securities in an unrealized loss position 12 months or longer, unrealized losses | -451 | -123 |
Securities in an unrealized loss position, fair value | 45,107 | 77,604 |
Securities in an unrealized loss position, unrealized losses | -466 | -2,361 |
Collateralized Mortgage Obligations [Member] | ||
Note 4 - Investment Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
No. of securities | 51 | 45 |
Securities in an unrealized loss position less than 12 months, fair value | 2,003 | 33,622 |
Securities in an unrealized loss position less than 12 months, unrealized losses | -205 | -1,413 |
Securities in an unrealized loss position 12 months or longer, fair value | 35,687 | 18,567 |
Securities in an unrealized loss position 12 months or longer, unrealized losses | -1,095 | -921 |
Securities in an unrealized loss position, fair value | 37,690 | 52,189 |
Securities in an unrealized loss position, unrealized losses | -1,300 | -2,334 |
Collateralized Debt Obligations [Member] | ||
Note 4 - Investment Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
No. of securities | 5 | 5 |
Securities in an unrealized loss position 12 months or longer, fair value | 1,978 | 1,683 |
Securities in an unrealized loss position 12 months or longer, unrealized losses | -1,240 | -1,535 |
Securities in an unrealized loss position, fair value | 1,978 | 1,683 |
Securities in an unrealized loss position, unrealized losses | -1,240 | -1,535 |
Equity Securities [Member] | ||
Note 4 - Investment Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
No. of securities | 7 | 3 |
Securities in an unrealized loss position less than 12 months, fair value | 1,303 | 394 |
Securities in an unrealized loss position less than 12 months, unrealized losses | -70 | -24 |
Securities in an unrealized loss position 12 months or longer, fair value | 136 | |
Securities in an unrealized loss position 12 months or longer, unrealized losses | -20 | |
Securities in an unrealized loss position, fair value | 1,303 | 530 |
Securities in an unrealized loss position, unrealized losses | -70 | -44 |
Corporate Debt Securities [Member] | ||
Note 4 - Investment Securities (Details) - Securities in a Continuous Unrealized Loss Position [Line Items] | ||
No. of securities | 2 | |
Securities in an unrealized loss position less than 12 months, fair value | 1,987 | |
Securities in an unrealized loss position less than 12 months, unrealized losses | -13 | |
Securities in an unrealized loss position, fair value | 1,987 | |
Securities in an unrealized loss position, unrealized losses | ($13) |
Note_4_Investment_Securities_D8
Note 4 - Investment Securities (Details) - Pooled Trust Preferred Securities (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2014 | ||
Note 4 - Investment Securities (Details) - Pooled Trust Preferred Securities [Line Items] | |||
Book value | $393,840,000 | $373,844,000 | |
Investment securities available-for-sale | 388,670,000 | 375,219,000 | |
Total recognized OTTI credit loss | -43,000 | ||
PreTSL IV [Member] | |||
Note 4 - Investment Securities (Details) - Pooled Trust Preferred Securities [Line Items] | |||
Class | Mezzanine* | [1] | |
Book value | 243,000 | ||
Investment securities available-for-sale | 208,000 | ||
Unrealized gains (losses) | -35,000 | ||
Total recognized OTTI credit loss | -1,000 | ||
Moody's/Fitch ratings | B1/B | ||
Current number of performing banks | 5 | ||
Actual deferrals and defaults as a % of total collateral | 18.00% | ||
Total performing collateral as a % of outstanding bonds | 140.20% | ||
PreTSL XVII [Member] | |||
Note 4 - Investment Securities (Details) - Pooled Trust Preferred Securities [Line Items] | |||
Class | Mezzanine | ||
Book value | 752,000 | ||
Investment securities available-for-sale | 502,000 | ||
Unrealized gains (losses) | -250,000 | ||
Total recognized OTTI credit loss | -222,000 | ||
Moody's/Fitch ratings | C/C | ||
Current number of performing banks | 34 | ||
Current number of performing insurance companies | 5 | ||
Actual deferrals and defaults as a % of total collateral | 27.30% | ||
Total performing collateral as a % of outstanding bonds | 87.20% | ||
PreTSL XIX [Member] | |||
Note 4 - Investment Securities (Details) - Pooled Trust Preferred Securities [Line Items] | |||
Class | Mezzanine | ||
Book value | 988,000 | ||
Investment securities available-for-sale | 508,000 | ||
Unrealized gains (losses) | -480,000 | ||
Total recognized OTTI credit loss | 0 | ||
Moody's/Fitch ratings | C/C | ||
Current number of performing banks | 38 | ||
Current number of performing insurance companies | 12 | ||
Actual deferrals and defaults as a % of total collateral | 13.30% | ||
Total performing collateral as a % of outstanding bonds | 92.40% | ||
PreTSL XXV [Member] | |||
Note 4 - Investment Securities (Details) - Pooled Trust Preferred Securities [Line Items] | |||
Class | Mezzanine | ||
Book value | 766,000 | ||
Investment securities available-for-sale | 423,000 | ||
Unrealized gains (losses) | -343,000 | ||
Total recognized OTTI credit loss | -222,000 | ||
Moody's/Fitch ratings | C/C | ||
Current number of performing banks | 48 | ||
Current number of performing insurance companies | 5 | ||
Actual deferrals and defaults as a % of total collateral | 30.70% | ||
Total performing collateral as a % of outstanding bonds | 85.50% | ||
PreTSL XXVI [Member] | |||
Note 4 - Investment Securities (Details) - Pooled Trust Preferred Securities [Line Items] | |||
Class | Mezzanine | ||
Book value | 469,000 | ||
Investment securities available-for-sale | 337,000 | ||
Unrealized gains (losses) | -132,000 | ||
Total recognized OTTI credit loss | -270,000 | ||
Moody's/Fitch ratings | C/C | ||
Current number of performing banks | 43 | ||
Current number of performing insurance companies | 7 | ||
Actual deferrals and defaults as a % of total collateral | 25.90% | ||
Total performing collateral as a % of outstanding bonds | 91.00% | ||
PreTSL XXVII [Member] | |||
Note 4 - Investment Securities (Details) - Pooled Trust Preferred Securities [Line Items] | |||
Class | Mezzanine | ||
Book value | 301,000 | ||
Investment securities available-for-sale | 461,000 | ||
Unrealized gains (losses) | 160,000 | ||
Total recognized OTTI credit loss | -438,000 | ||
Moody's/Fitch ratings | C/C | ||
Current number of performing banks | 43 | ||
Current number of performing insurance companies | 7 | ||
Actual deferrals and defaults as a % of total collateral | 25.90% | ||
Total performing collateral as a % of outstanding bonds | 91.00% | ||
Collateralized Debt Obligations [Member] | |||
Note 4 - Investment Securities (Details) - Pooled Trust Preferred Securities [Line Items] | |||
Book value | 3,519,000 | 3,519,000 | |
Investment securities available-for-sale | 2,069,000 | 2,439,000 | |
Unrealized gains (losses) | -1,080,000 | ||
Total recognized OTTI credit loss | ($1,153,000) | ||
[1] | Mezzanine* - only class of bonds still outstanding (represents the senior-most obligation of the trust) |
Note_5_Loans_and_Allowance_for2
Note 5 - Loans and Allowance for Loan Losses (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 5 - Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Bank Overdrafts | $142,000 | $138,000 |
Financing Receivable, Modifications, Recorded Investment | 5,587,000 | 8,561,000 |
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | 909,000 | 551,000 |
Loans and Leases Receivable, Impaired, Commitment to Lend | 1,729,000 | 1,603,000 |
Residential Portfolio Segment [Member] | Maximum [Member] | ||
Note 5 - Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Loan-to-value Ratio | 80.00% | |
Performing Financing Receivable [Member] | ||
Note 5 - Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Financing Receivable, Modifications, Recorded Investment | 1,897,000 | 1,960,000 |
Nonperforming Financing Receivable [Member] | ||
Note 5 - Loans and Allowance for Loan Losses (Details) [Line Items] | ||
Financing Receivable, Modifications, Recorded Investment | $3,690,000 | $6,601,000 |
Note_5_Loans_and_Allowance_for3
Note 5 - Loans and Allowance for Loan Losses (Details) - Major Classes of Loans (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $555,251 | $501,752 |
Net unearned costs (fees) | 31 | -36 |
Loans receivable | 555,282 | 501,716 |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 118,845 | 111,339 |
Commercial Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 23,471 | 15,929 |
Commercial:Secured by Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 203,534 | 190,602 |
Commercial Secured By Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 53,077 | 47,672 |
State and Political Subdivisions [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 44,104 | 33,773 |
Loans To Depository Institutions [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,250 | |
Indirect Lease Financing [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 7,685 | 8,364 |
Retail:1-4 Family Residential Mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 37,147 | 29,730 |
Retail Home Equity Loans and Lines [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 63,213 | 59,977 |
Retail:Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $4,175 | $3,116 |
Note_5_Loans_and_Allowance_for4
Note 5 - Loans and Allowance for Loan Losses (Details) - Loan Portfolio Summarized by the Aggregate Pass Ratings (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commercial: | ||
Loans | $555,251 | $501,752 |
Commercial and Industrial [Member] | Pass [Member] | ||
Commercial: | ||
Loans | 111,560 | 100,943 |
Commercial and Industrial [Member] | Special Mention [Member] | ||
Commercial: | ||
Loans | 42 | 59 |
Commercial and Industrial [Member] | Substandard [Member] | ||
Commercial: | ||
Loans | 7,243 | 10,337 |
Commercial and Industrial [Member] | ||
Commercial: | ||
Loans | 118,845 | 111,339 |
Commercial Construction [Member] | Pass [Member] | ||
Commercial: | ||
Loans | 22,981 | 13,751 |
Commercial Construction [Member] | Special Mention [Member] | ||
Commercial: | ||
Loans | 128 | 827 |
Commercial Construction [Member] | Substandard [Member] | ||
Commercial: | ||
Loans | 362 | 1,351 |
Commercial Construction [Member] | ||
Commercial: | ||
Loans | 23,471 | 15,929 |
Commercial:Secured by Commercial Real Estate [Member] | Pass [Member] | ||
Commercial: | ||
Loans | 178,339 | 163,349 |
Commercial:Secured by Commercial Real Estate [Member] | Special Mention [Member] | ||
Commercial: | ||
Loans | 2,418 | 4,199 |
Commercial:Secured by Commercial Real Estate [Member] | Substandard [Member] | ||
Commercial: | ||
Loans | 22,777 | 23,054 |
Commercial:Secured by Commercial Real Estate [Member] | ||
Commercial: | ||
Loans | 203,534 | 190,602 |
Commercial Secured By Residential Real Estate [Member] | Pass [Member] | ||
Commercial: | ||
Loans | 50,172 | 43,854 |
Commercial Secured By Residential Real Estate [Member] | Special Mention [Member] | ||
Commercial: | ||
Loans | 408 | 187 |
Commercial Secured By Residential Real Estate [Member] | Substandard [Member] | ||
Commercial: | ||
Loans | 2,497 | 3,631 |
Commercial Secured By Residential Real Estate [Member] | ||
Commercial: | ||
Loans | 53,077 | 47,672 |
State and Political Subdivisions [Member] | Pass [Member] | ||
Commercial: | ||
Loans | 42,771 | 33,488 |
State and Political Subdivisions [Member] | Substandard [Member] | ||
Commercial: | ||
Loans | 1,333 | 285 |
State and Political Subdivisions [Member] | ||
Commercial: | ||
Loans | 44,104 | 33,773 |
Loans To Depository Institutions [Member] | Pass [Member] | ||
Commercial: | ||
Loans | 1,250 | |
Loans To Depository Institutions [Member] | ||
Commercial: | ||
Loans | 1,250 | |
Indirect Lease Financing [Member] | Pass [Member] | ||
Commercial: | ||
Loans | 7,543 | 8,199 |
Indirect Lease Financing [Member] | Substandard [Member] | ||
Commercial: | ||
Loans | 142 | 165 |
Indirect Lease Financing [Member] | ||
Commercial: | ||
Loans | 7,685 | 8,364 |
Excluding Retail Loans [Member] | Pass [Member] | ||
Commercial: | ||
Loans | 413,366 | 364,834 |
Excluding Retail Loans [Member] | Special Mention [Member] | ||
Commercial: | ||
Loans | 2,996 | 5,272 |
Excluding Retail Loans [Member] | Substandard [Member] | ||
Commercial: | ||
Loans | 34,354 | 38,823 |
Excluding Retail Loans [Member] | ||
Commercial: | ||
Loans | $450,716 | $408,929 |
Note_5_Loans_and_Allowance_for5
Note 5 - Loans and Allowance for Loan Losses (Details) - Retail Loans by Credit Quality (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $555,251 | $501,752 |
Retail:1-4 Family Residential Mortgages [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 36,922 | 29,329 |
Retail:1-4 Family Residential Mortgages [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 225 | 401 |
Retail:1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 37,147 | 29,730 |
Retail Home Equity Loans and Lines [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 63,109 | 59,712 |
Retail Home Equity Loans and Lines [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 104 | 265 |
Retail Home Equity Loans and Lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 63,213 | 59,977 |
Retail:Consumer [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,174 | 3,099 |
Retail:Consumer [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 1 | 17 |
Retail:Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 4,175 | 3,116 |
Total Retail Loans [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 104,205 | 92,140 |
Total Retail Loans [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 330 | 683 |
Total Retail Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $104,535 | $92,823 |
Note_5_Loans_and_Allowance_for6
Note 5 - Loans and Allowance for Loan Losses (Details) - Past Due Loans (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commercial: | ||
Loans 30 - 59 days past due | $1,993 | $3,928 |
Loans 60 - 89 days past due | 963 | 688 |
Loans 90 days or more past due | 3,747 | 770 |
Total past due loans | 6,703 | 5,386 |
Current loans | 548,548 | 496,366 |
Loans | 555,251 | 501,752 |
Commercial and Industrial [Member] | ||
Commercial: | ||
Loans 30 - 59 days past due | 112 | |
Loans 90 days or more past due | 17 | |
Total past due loans | 129 | |
Current loans | 118,845 | 111,210 |
Loans | 118,845 | 111,339 |
Commercial Construction [Member] | ||
Commercial: | ||
Loans 30 - 59 days past due | 466 | |
Total past due loans | 466 | |
Current loans | 23,005 | 15,929 |
Loans | 23,471 | 15,929 |
Commercial:Secured by Commercial Real Estate [Member] | ||
Commercial: | ||
Loans 30 - 59 days past due | 28 | 1,126 |
Loans 60 - 89 days past due | 332 | 361 |
Loans 90 days or more past due | 3,747 | 255 |
Total past due loans | 4,107 | 1,742 |
Current loans | 199,427 | 188,860 |
Loans | 203,534 | 190,602 |
Commercial Secured By Residential Real Estate [Member] | ||
Commercial: | ||
Loans 30 - 59 days past due | 600 | 1,242 |
Loans 60 - 89 days past due | 574 | 98 |
Loans 90 days or more past due | 105 | |
Total past due loans | 1,174 | 1,445 |
Current loans | 51,903 | 46,227 |
Loans | 53,077 | 47,672 |
State and Political Subdivisions [Member] | ||
Commercial: | ||
Loans 30 - 59 days past due | 65 | |
Loans 60 - 89 days past due | 65 | |
Total past due loans | 130 | |
Current loans | 44,104 | 33,643 |
Loans | 44,104 | 33,773 |
Loans To Depository Institutions [Member] | ||
Commercial: | ||
Current loans | 1,250 | |
Loans | 1,250 | |
Indirect Lease Financing [Member] | ||
Commercial: | ||
Loans 30 - 59 days past due | 291 | 311 |
Loans 60 - 89 days past due | 152 | |
Total past due loans | 291 | 463 |
Current loans | 7,394 | 7,901 |
Loans | 7,685 | 8,364 |
Retail:1-4 Family Residential Mortgages [Member] | ||
Commercial: | ||
Loans 30 - 59 days past due | 526 | 752 |
Loans 60 - 89 days past due | 5 | |
Loans 90 days or more past due | 270 | |
Total past due loans | 526 | 1,027 |
Current loans | 36,621 | 28,703 |
Loans | 37,147 | 29,730 |
Retail Home Equity Loans and Lines [Member] | ||
Commercial: | ||
Loans 30 - 59 days past due | 66 | 295 |
Loans 60 - 89 days past due | 49 | 2 |
Loans 90 days or more past due | 106 | |
Total past due loans | 115 | 403 |
Current loans | 63,098 | 59,574 |
Loans | 63,213 | 59,977 |
Retail:Consumer [Member] | ||
Commercial: | ||
Loans 30 - 59 days past due | 16 | 25 |
Loans 60 - 89 days past due | 8 | 5 |
Loans 90 days or more past due | 17 | |
Total past due loans | 24 | 47 |
Current loans | 4,151 | 3,069 |
Loans | $4,175 | $3,116 |
Note_5_Loans_and_Allowance_for7
Note 5 - Loans and Allowance for Loan Losses (Details) - Non-Accrual Loans (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commercial: | ||
Loans 90 days or more past due and still accruing | $1 | |
Non-accrual loans | 10,770 | 13,453 |
Commercial and Industrial [Member] | ||
Commercial: | ||
Non-accrual loans | 2,171 | 3,956 |
Commercial Construction [Member] | ||
Commercial: | ||
Non-accrual loans | 337 | 1,319 |
Commercial:Secured by Commercial Real Estate [Member] | ||
Commercial: | ||
Non-accrual loans | 6,465 | 4,630 |
Commercial Secured By Residential Real Estate [Member] | ||
Commercial: | ||
Non-accrual loans | 1,467 | 2,829 |
Indirect Lease Financing [Member] | ||
Commercial: | ||
Non-accrual loans | 37 | |
Retail:1-4 Family Residential Mortgages [Member] | ||
Commercial: | ||
Non-accrual loans | 225 | 401 |
Retail Home Equity Loans and Lines [Member] | ||
Commercial: | ||
Non-accrual loans | 104 | 265 |
Retail:Consumer [Member] | ||
Commercial: | ||
Loans 90 days or more past due and still accruing | 1 | |
Non-accrual loans | $1 | $16 |
Note_5_Loans_and_Allowance_for8
Note 5 - Loans and Allowance for Loan Losses (Details) - Allowance for Loan Losses (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses, beginning of period | $8,925 | $9,772 | ||||
Provision for (credit to) loan losses | 400 | 150 | 150 | 100 | 400 | 400 |
Charge-offs | -1,613 | -1,421 | ||||
Recoveries | 289 | 174 | ||||
Allowance for loan losses, end of period | 8,001 | 8,925 | 8,001 | 8,925 | ||
Commercial and Industrial [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses, beginning of period | 2,044 | 2,505 | ||||
Provision for (credit to) loan losses | -202 | -421 | ||||
Charge-offs | -17 | -68 | ||||
Recoveries | 67 | 28 | ||||
Allowance for loan losses, end of period | 1,892 | 2,044 | 1,892 | 2,044 | ||
Commercial Construction [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses, beginning of period | 439 | 209 | ||||
Provision for (credit to) loan losses | -142 | 230 | ||||
Allowance for loan losses, end of period | 297 | 439 | 297 | 439 | ||
Commercial:Secured by Commercial Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses, beginning of period | 2,898 | 3,795 | ||||
Provision for (credit to) loan losses | -131 | -259 | ||||
Charge-offs | -70 | -639 | ||||
Recoveries | 3 | 1 | ||||
Allowance for loan losses, end of period | 2,700 | 2,898 | 2,700 | 2,898 | ||
Commercial Secured By Residential Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses, beginning of period | 1,632 | 1,230 | ||||
Provision for (credit to) loan losses | 1,019 | 743 | ||||
Charge-offs | -1,069 | -401 | ||||
Recoveries | 48 | 60 | ||||
Allowance for loan losses, end of period | 1,630 | 1,632 | 1,630 | 1,632 | ||
State and Political Subdivisions [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses, beginning of period | 186 | 260 | ||||
Provision for (credit to) loan losses | 35 | -75 | ||||
Recoveries | 1 | |||||
Allowance for loan losses, end of period | 221 | 186 | 221 | 186 | ||
Loans To Depository Institutions [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses, beginning of period | 4 | 15 | ||||
Provision for (credit to) loan losses | -4 | -11 | ||||
Allowance for loan losses, end of period | 0 | 4 | 0 | 4 | ||
Indirect Lease Financing [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses, beginning of period | 103 | 168 | ||||
Provision for (credit to) loan losses | 15 | -93 | ||||
Charge-offs | -39 | -2 | ||||
Recoveries | 14 | 30 | ||||
Allowance for loan losses, end of period | 93 | 103 | 93 | 103 | ||
Retail:1-4 Family Residential Mortgages [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses, beginning of period | 303 | 324 | ||||
Provision for (credit to) loan losses | 103 | -21 | ||||
Charge-offs | -95 | |||||
Recoveries | 1 | |||||
Allowance for loan losses, end of period | 312 | 303 | 312 | 303 | ||
Retail Home Equity Loans and Lines [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses, beginning of period | 583 | 582 | ||||
Provision for (credit to) loan losses | -84 | 207 | ||||
Charge-offs | -156 | -234 | ||||
Recoveries | 110 | 28 | ||||
Allowance for loan losses, end of period | 453 | 583 | 453 | 583 | ||
Retail:Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses, beginning of period | 64 | 27 | ||||
Provision for (credit to) loan losses | 142 | 88 | ||||
Charge-offs | -167 | -77 | ||||
Recoveries | 46 | 26 | ||||
Allowance for loan losses, end of period | 85 | 64 | 85 | 64 | ||
Unallocated Financing Receivables [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Allowance for loan losses, beginning of period | 669 | 657 | ||||
Provision for (credit to) loan losses | -351 | 12 | ||||
Charge-offs | ||||||
Recoveries | ||||||
Allowance for loan losses, end of period | $318 | $669 | $318 | $669 |
Note_5_Loans_and_Allowance_for9
Note 5 - Loans and Allowance for Loan Losses (Details) - Specific Reserve for Loans Modified as TDR's (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Specific Reserve for Loans Modified as TDR's [Abstract] | ||
TDRs with no specific allowance recorded | $4,588 | $5,647 |
TDRs with an allowance recorded | 999 | 2,914 |
TDRs with an allowance recorded | 813 | 1,395 |
5,587 | 8,561 | |
$813 | $1,395 |
Recovered_Sheet1
Note 5 - Loans and Allowance for Loan Losses (Details) - Loans by Loan Class Modified as TDRs (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Commercial: | ||
Number of contracts | 1 | 16 |
Pre-modification outstanding recorded investment | $25 | $4,588 |
Post-modification outstanding recorded investment | 25 | 4,557 |
Commercial and Industrial [Member] | ||
Commercial: | ||
Number of contracts | 1 | |
Pre-modification outstanding recorded investment | 757 | |
Post-modification outstanding recorded investment | 757 | |
Commercial Construction [Member] | ||
Commercial: | ||
Number of contracts | 2 | |
Pre-modification outstanding recorded investment | 1,319 | |
Post-modification outstanding recorded investment | 1,319 | |
Commercial:Secured by Commercial Real Estate [Member] | ||
Commercial: | ||
Number of contracts | 1 | |
Pre-modification outstanding recorded investment | 1,822 | |
Post-modification outstanding recorded investment | 1,805 | |
Commercial Secured By Residential Real Estate [Member] | ||
Commercial: | ||
Number of contracts | 12 | |
Pre-modification outstanding recorded investment | 690 | |
Post-modification outstanding recorded investment | 676 | |
Retail Home Equity Loans and Lines [Member] | ||
Commercial: | ||
Number of contracts | 1 | |
Pre-modification outstanding recorded investment | 25 | |
Post-modification outstanding recorded investment | $25 |
Recovered_Sheet2
Note 5 - Loans and Allowance for Loan Losses (Details) - TDRs Subsequently Defaulted (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Commercial: | |
TDRs subsequently defaulted, number of contracts | 6 |
TDRs subsequently defaulted, recorded investment | $361 |
Commercial Secured By Residential Real Estate [Member] | |
Commercial: | |
TDRs subsequently defaulted, number of contracts | 6 |
TDRs subsequently defaulted, recorded investment | $361 |
Recovered_Sheet3
Note 5 - Loans and Allowance for Loan Losses (Details) - Loans Disaggregated by Impairment Method (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Commercial: | |||
Allowance for loan losses, end of period | $8,001 | $8,925 | $9,772 |
Allowance for loan losses - individually evaluated for impairment | 1,194 | 2,022 | |
Allowance for loan losses - collectively evaluated for impairment | 6,489 | 6,234 | |
Loans receivable - balance | 555,251 | 501,752 | |
Loans receivable - individually evaluated for impairment | 21,077 | 27,617 | |
Loans receivable - collectively evaluated for impairment | 534,174 | 474,135 | |
Commercial and Industrial [Member] | |||
Commercial: | |||
Allowance for loan losses, end of period | 1,892 | 2,044 | 2,505 |
Allowance for loan losses - individually evaluated for impairment | 1,095 | 1,106 | |
Allowance for loan losses - collectively evaluated for impairment | 797 | 938 | |
Loans receivable - balance | 118,845 | 111,339 | |
Loans receivable - individually evaluated for impairment | 7,115 | 10,304 | |
Loans receivable - collectively evaluated for impairment | 111,730 | 101,035 | |
Commercial Construction [Member] | |||
Commercial: | |||
Allowance for loan losses, end of period | 297 | 439 | 209 |
Allowance for loan losses - individually evaluated for impairment | 121 | ||
Allowance for loan losses - collectively evaluated for impairment | 297 | 318 | |
Loans receivable - balance | 23,471 | 15,929 | |
Loans receivable - individually evaluated for impairment | 362 | 1,351 | |
Loans receivable - collectively evaluated for impairment | 23,109 | 14,578 | |
Commercial:Secured by Commercial Real Estate [Member] | |||
Commercial: | |||
Allowance for loan losses, end of period | 2,700 | 2,898 | 3,795 |
Allowance for loan losses - individually evaluated for impairment | 9 | ||
Allowance for loan losses - collectively evaluated for impairment | 2,700 | 2,889 | |
Loans receivable - balance | 203,534 | 190,602 | |
Loans receivable - individually evaluated for impairment | 11,546 | 12,288 | |
Loans receivable - collectively evaluated for impairment | 191,988 | 178,314 | |
Commercial Secured By Residential Real Estate [Member] | |||
Commercial: | |||
Allowance for loan losses, end of period | 1,630 | 1,632 | 1,230 |
Allowance for loan losses - individually evaluated for impairment | 91 | 639 | |
Allowance for loan losses - collectively evaluated for impairment | 1,539 | 993 | |
Loans receivable - balance | 53,077 | 47,672 | |
Loans receivable - individually evaluated for impairment | 1,567 | 2,833 | |
Loans receivable - collectively evaluated for impairment | 51,510 | 44,839 | |
State and Political Subdivisions [Member] | |||
Commercial: | |||
Allowance for loan losses, end of period | 221 | 186 | 260 |
Allowance for loan losses - collectively evaluated for impairment | 221 | 186 | |
Loans receivable - balance | 44,104 | 33,773 | |
Loans receivable - collectively evaluated for impairment | 44,104 | 33,773 | |
Loans To Depository Institutions [Member] | |||
Commercial: | |||
Allowance for loan losses, end of period | 0 | 4 | 15 |
Allowance for loan losses - collectively evaluated for impairment | 4 | ||
Loans receivable - balance | 1,250 | ||
Loans receivable - collectively evaluated for impairment | 1,250 | ||
Indirect Lease Financing [Member] | |||
Commercial: | |||
Allowance for loan losses, end of period | 93 | 103 | 168 |
Allowance for loan losses - individually evaluated for impairment | 3 | ||
Allowance for loan losses - collectively evaluated for impairment | 93 | 100 | |
Loans receivable - balance | 7,685 | 8,364 | |
Loans receivable - individually evaluated for impairment | 16 | 37 | |
Loans receivable - collectively evaluated for impairment | 7,669 | 8,327 | |
Retail:1-4 Family Residential Mortgages [Member] | |||
Commercial: | |||
Allowance for loan losses, end of period | 312 | 303 | 324 |
Allowance for loan losses - individually evaluated for impairment | 4 | 63 | |
Allowance for loan losses - collectively evaluated for impairment | 308 | 240 | |
Loans receivable - balance | 37,147 | 29,730 | |
Loans receivable - individually evaluated for impairment | 341 | 522 | |
Loans receivable - collectively evaluated for impairment | 36,806 | 29,208 | |
Retail Home Equity Loans and Lines [Member] | |||
Commercial: | |||
Allowance for loan losses, end of period | 453 | 583 | 582 |
Allowance for loan losses - individually evaluated for impairment | 4 | 70 | |
Allowance for loan losses - collectively evaluated for impairment | 449 | 513 | |
Loans receivable - balance | 63,213 | 59,977 | |
Loans receivable - individually evaluated for impairment | 129 | 266 | |
Loans receivable - collectively evaluated for impairment | 63,084 | 59,711 | |
Retail:Consumer [Member] | |||
Commercial: | |||
Allowance for loan losses, end of period | 85 | 64 | 27 |
Allowance for loan losses - individually evaluated for impairment | 11 | ||
Allowance for loan losses - collectively evaluated for impairment | 85 | 53 | |
Loans receivable - balance | 4,175 | 3,116 | |
Loans receivable - individually evaluated for impairment | 1 | 16 | |
Loans receivable - collectively evaluated for impairment | 4,174 | 3,100 | |
Unallocated [Member] | |||
Commercial: | |||
Allowance for loan losses, end of period | 318 | 669 | |
Allowance for loan losses - individually evaluated for impairment | |||
Allowance for loan losses - collectively evaluated for impairment | |||
Loans receivable - balance | |||
Loans receivable - individually evaluated for impairment | |||
Loans receivable - collectively evaluated for impairment |
Recovered_Sheet4
Note 5 - Loans and Allowance for Loan Losses (Details) - Impaired Loans (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
With no specific allowance recorded: | ||
Loans with no specific allowance recorded, recorded investment (after charge-offs) | $19,019,000 | $22,515,000 |
Loans with no specific allowance recorded, unpaid principal balance | 20,485,000 | 23,404,000 |
With an allowance recorded: | ||
Loans with an allowance recorded, recorded investment (after charge-offs) | 2,058,000 | 5,102,000 |
Loans with an allowance recorded, unpaid principal balance | 2,359,000 | 5,609,000 |
Loans, related allowance | 1,194,000 | 2,022,000 |
Total: | ||
Loans, recorded investment (after charge-offs) | 21,077,000 | 27,617,000 |
Loans, unpaid principal balance | 22,844,000 | 29,013,000 |
Loans, related allowance | 1,194,000 | 2,022,000 |
Loans, average recorded investment | 25,768,000 | 29,254,000 |
Loans, interest income recognized | 683,000 | 560,000 |
Commercial and Industrial [Member] | ||
With no specific allowance recorded: | ||
Loans with no specific allowance recorded, recorded investment (after charge-offs) | 5,894,000 | 8,222,000 |
Loans with no specific allowance recorded, unpaid principal balance | 6,056,000 | 8,417,000 |
With an allowance recorded: | ||
Loans with an allowance recorded, recorded investment (after charge-offs) | 1,221,000 | 2,082,000 |
Loans with an allowance recorded, unpaid principal balance | 1,419,000 | 2,350,000 |
Loans, related allowance | 1,095,000 | 1,106,000 |
Total: | ||
Loans, recorded investment (after charge-offs) | 7,115,000 | 10,304,000 |
Loans, unpaid principal balance | 7,475,000 | 10,767,000 |
Loans, related allowance | 1,095,000 | 1,106,000 |
Loans, average recorded investment | 9,305,000 | 6,732,000 |
Loans, interest income recognized | 331,000 | 34,000 |
Commercial Construction [Member] | ||
With no specific allowance recorded: | ||
Loans with no specific allowance recorded, recorded investment (after charge-offs) | 362,000 | 916,000 |
Loans with no specific allowance recorded, unpaid principal balance | 444,000 | 1,140,000 |
With an allowance recorded: | ||
Loans with an allowance recorded, recorded investment (after charge-offs) | 435,000 | |
Loans with an allowance recorded, unpaid principal balance | 493,000 | |
Loans, related allowance | 121,000 | |
Total: | ||
Loans, recorded investment (after charge-offs) | 362,000 | 1,351,000 |
Loans, unpaid principal balance | 444,000 | 1,633,000 |
Loans, related allowance | 121,000 | |
Loans, average recorded investment | 1,050,000 | 3,179,000 |
Loans, interest income recognized | 2,000 | 46,000 |
Commercial:Secured by Commercial Real Estate [Member] | ||
With no specific allowance recorded: | ||
Loans with no specific allowance recorded, recorded investment (after charge-offs) | 11,546,000 | 12,251,000 |
Loans with no specific allowance recorded, unpaid principal balance | 12,198,000 | 12,568,000 |
With an allowance recorded: | ||
Loans with an allowance recorded, recorded investment (after charge-offs) | 37,000 | |
Loans with an allowance recorded, unpaid principal balance | 37,000 | |
Loans, related allowance | 9,000 | |
Total: | ||
Loans, recorded investment (after charge-offs) | 11,546,000 | 12,288,000 |
Loans, unpaid principal balance | 12,198,000 | 12,605,000 |
Loans, related allowance | 9,000 | |
Loans, average recorded investment | 12,304,000 | 13,765,000 |
Loans, interest income recognized | 344,000 | 399,000 |
Commercial Secured By Residential Real Estate [Member] | ||
With no specific allowance recorded: | ||
Loans with no specific allowance recorded, recorded investment (after charge-offs) | 903,000 | 728,000 |
Loans with no specific allowance recorded, unpaid principal balance | 1,427,000 | 839,000 |
With an allowance recorded: | ||
Loans with an allowance recorded, recorded investment (after charge-offs) | 664,000 | 2,105,000 |
Loans with an allowance recorded, unpaid principal balance | 748,000 | 2,248,000 |
Loans, related allowance | 91,000 | 639,000 |
Total: | ||
Loans, recorded investment (after charge-offs) | 1,567,000 | 2,833,000 |
Loans, unpaid principal balance | 2,175,000 | 3,087,000 |
Loans, related allowance | 91,000 | 639,000 |
Loans, average recorded investment | 2,452,000 | 3,090,000 |
Loans, interest income recognized | 23,000 | |
State and Political Subdivisions [Member] | ||
Total: | ||
Loans, average recorded investment | 1,636,000 | |
Loans, interest income recognized | 53,000 | |
Indirect Lease Financing [Member] | ||
With no specific allowance recorded: | ||
Loans with no specific allowance recorded, recorded investment (after charge-offs) | 16,000 | 13,000 |
Loans with no specific allowance recorded, unpaid principal balance | 16,000 | 16,000 |
With an allowance recorded: | ||
Loans with an allowance recorded, recorded investment (after charge-offs) | 24,000 | |
Loans with an allowance recorded, unpaid principal balance | 27,000 | |
Loans, related allowance | 3,000 | |
Total: | ||
Loans, recorded investment (after charge-offs) | 16,000 | 37,000 |
Loans, unpaid principal balance | 16,000 | 43,000 |
Loans, related allowance | 3,000 | |
Loans, average recorded investment | 26,000 | 63,000 |
Loans, interest income recognized | 1,000 | |
Retail:1-4 Family Residential Mortgages [Member] | ||
With no specific allowance recorded: | ||
Loans with no specific allowance recorded, recorded investment (after charge-offs) | 225,000 | 250,000 |
Loans with no specific allowance recorded, unpaid principal balance | 250,000 | 274,000 |
With an allowance recorded: | ||
Loans with an allowance recorded, recorded investment (after charge-offs) | 116,000 | 272,000 |
Loans with an allowance recorded, unpaid principal balance | 116,000 | 284,000 |
Loans, related allowance | 4,000 | 63,000 |
Total: | ||
Loans, recorded investment (after charge-offs) | 341,000 | 522,000 |
Loans, unpaid principal balance | 366,000 | 558,000 |
Loans, related allowance | 4,000 | 63,000 |
Loans, average recorded investment | 460,000 | 495,000 |
Loans, interest income recognized | 5,000 | 5,000 |
Retail Home Equity Loans and Lines [Member] | ||
With no specific allowance recorded: | ||
Loans with no specific allowance recorded, recorded investment (after charge-offs) | 72,000 | 135,000 |
Loans with no specific allowance recorded, unpaid principal balance | 93,000 | 150,000 |
With an allowance recorded: | ||
Loans with an allowance recorded, recorded investment (after charge-offs) | 57,000 | 131,000 |
Loans with an allowance recorded, unpaid principal balance | 76,000 | 154,000 |
Loans, related allowance | 4,000 | 70,000 |
Total: | ||
Loans, recorded investment (after charge-offs) | 129,000 | 266,000 |
Loans, unpaid principal balance | 169,000 | 304,000 |
Loans, related allowance | 4,000 | 70,000 |
Loans, average recorded investment | 169,000 | 293,000 |
Retail:Consumer [Member] | ||
With no specific allowance recorded: | ||
Loans with no specific allowance recorded, recorded investment (after charge-offs) | 1,000 | |
Loans with no specific allowance recorded, unpaid principal balance | 1,000 | |
With an allowance recorded: | ||
Loans with an allowance recorded, recorded investment (after charge-offs) | 16,000 | |
Loans with an allowance recorded, unpaid principal balance | 16,000 | |
Loans, related allowance | 11,000 | |
Total: | ||
Loans, recorded investment (after charge-offs) | 1,000 | 16,000 |
Loans, unpaid principal balance | 1,000 | 16,000 |
Loans, related allowance | 11,000 | |
Loans, average recorded investment | $2,000 | $1,000 |
Note_6_Premises_and_Equipment_1
Note 6 - Premises and Equipment (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $1,167,000 | $1,146,000 |
Note_6_Premises_and_Equipment_2
Note 6 - Premises and Equipment (Details) - Premises and Equipment (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $26,027 | $25,089 |
Accumulated depreciation and amortization | -16,325 | -15,214 |
Net book value | 9,702 | 9,875 |
Land and Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 11,138 | 10,763 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | 12,576 | 12,022 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $2,313 | $2,304 |
Note_7_Intangible_Assets_and_L2
Note 7 - Intangible Assets and Loan Servicing (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Jan. 16, 2014 | Nov. 26, 2014 | Dec. 31, 2013 | |
Note 7 - Intangible Assets and Loan Servicing (Details) [Line Items] | ||||
Servicing Asset, Loans, Unpaid Principal Balance | $79,572,000 | 81,750,000 | ||
Servicing Asset at Fair Value, Amount | 601,000 | 643,000 | ||
Gain (Loss) on Disposition of Intangible Assets | 1,000,000 | |||
Internet Domain Names [Member] | ||||
Note 7 - Intangible Assets and Loan Servicing (Details) [Line Items] | ||||
Indefinite-lived Intangible Assets, Purchase Accounting Adjustments | 8,000 | |||
Internet Domain Names [Member] | ||||
Note 7 - Intangible Assets and Loan Servicing (Details) [Line Items] | ||||
Gain (Loss) on Disposition of Intangible Assets | $1,000,000 | |||
Minimum [Member] | ||||
Note 7 - Intangible Assets and Loan Servicing (Details) [Line Items] | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 10.00% | 10.00% | ||
Maximum [Member] | ||||
Note 7 - Intangible Assets and Loan Servicing (Details) [Line Items] | ||||
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Discount Rate | 12.00% | 12.00% |
Note_7_Intangible_Assets_and_L3
Note 7 - Intangible Assets and Loan Servicing (Details) - Activity of Mortgage Servicing Rights (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Activity of Mortgage Servicing Rights [Abstract] | ||
Balance at beginning of year | $519 | $448 |
Mortgage servicing rights capitalized | 48 | 126 |
Mortgage servicing rights amortized | -71 | -92 |
Fair market value adjustments | 8 | 37 |
Balance at end of year | $504 | $519 |
Note_7_Intangible_Assets_and_L4
Note 7 - Intangible Assets and Loan Servicing (Details) - Estimated Amortization Expense of Intangible Assets (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Estimated Amortization Expense of Intangible Assets [Abstract] | |
2015 | $92 |
2016 | 76 |
2017 | 63 |
2018 | 52 |
2019 | $43 |
Note_8_Time_Deposits_Details
Note 8 - Time Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Disclosure Text Block [Abstract] | ||
Time Deposits, $100,000 or More | $243,247,000 | $239,545,000 |
Time Deposits, $250,000 or More | $34,118,000 | $29,765,000 |
Note_8_Time_Deposits_Details_S
Note 8 - Time Deposits (Details) - Scheduled Maturities of Time Deposits (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Scheduled Maturities of Time Deposits [Abstract] | |
2015 | $115,347 |
2016 | 49,873 |
2017 | 34,615 |
2018 | 23,019 |
2019 | 20,393 |
Total time deposits | $243,247 |
Note_9_ShortTerm_Borrowings_De
Note 9 - Short-Term Borrowings (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Note 9 - Short-Term Borrowings (Details) [Line Items] | ||
Available-for-sale Securities Pledged as Collateral | $206,774,000 | $207,868,000 |
Federal Funds Unsecured, Number of Lines | 3 | |
Federal Funds Unsecured Lines | 31,000,000 | |
Federal Funds Purchased | 0 | 0 |
Securities Sold under Agreements to Repurchase [Member] | ||
Note 9 - Short-Term Borrowings (Details) [Line Items] | ||
Available-For-Sale Securities Pledged As Collateral, Amortized Cost | 47,501,000 | 54,983,000 |
Available-for-sale Securities Pledged as Collateral | $47,719,000 | $54,441,000 |
Note_9_ShortTerm_Borrowings_De1
Note 9 - Short-Term Borrowings (Details) - Short-Term Borrowings (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
2014 | ||||
Balance | $35,189 | $35,156 | ||
Securities Sold under Agreements to Repurchase [Member] | ||||
2014 | ||||
Balance | 35,189 | [1] | 35,156 | [1] |
Maximum indebtedness at any month end | 35,189 | [1] | 35,156 | [1] |
Daily average indebtedness outstanding | 29,574 | [1] | 29,684 | [1] |
Average rate paid for the year | 0.37% | [1] | 0.37% | [1] |
Average rate on period-end borrowings | 0.37% | [1] | 0.37% | [1] |
Other Short-term Debt [Member] | ||||
2014 | ||||
Daily average indebtedness outstanding | $2,042 | [2] | $59 | [2] |
Average rate paid for the year | 0.30% | [2] | 0.21% | [2] |
[1] | Securities sold under agreements to repurchase mature overnight. The repurchase agreements were collateralized by U.S. Government mortgage-backed securities and CMOs with an amortized cost of $47,501,000 and $54,983,000 and a fair value of $47,719,000 and $54,441,000 at December 31, 2014 and 2013, respectively. These securities are held in safekeeping at the Federal Reserve Bank of Philadelphia. | |||
[2] | Other short-term borrowings include Federal funds purchased and overnight borrowings from the FHLB. |
Note_10_LongTerm_Debt_Details
Note 10 - Long-Term Debt (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 10 - Long-Term Debt (Details) [Line Items] | |||
Federal Home Loan Bank Stock | $635,000 | $1,752,000 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Maximum Amount Available | 227,142,000 | ||
Advances from Federal Home Loan Banks | 0 | 0 | |
Secured Debt, Repurchase Agreements | 5,000,000 | [1] | |
Callable Beginning 4/17/10 [Member] | |||
Note 10 - Long-Term Debt (Details) [Line Items] | |||
Secured Debt, Repurchase Agreements | 2,500,000 | ||
Callable Beginning 4/17/12 [Member] | |||
Note 10 - Long-Term Debt (Details) [Line Items] | |||
Secured Debt, Repurchase Agreements | $2,500,000 | ||
[1] | $2,500,000 callable beginning 4/17/10, $2,500,000 callable beginning 4/17/12 |
Note_10_LongTerm_Debt_Details_
Note 10 - Long-Term Debt (Details) - Long-term Debt (USD $) | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | ||
Long-term Debt, Unclassified [Abstract] | ||
2014 | $5,000 | [1] |
2014 | 4.77% | |
[1] | $2,500,000 callable beginning 4/17/10, $2,500,000 callable beginning 4/17/12 |
Note_11_Income_Taxes_Details
Note 11 - Income Taxes (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Note_11_Income_Taxes_Details_P
Note 11 - Income Taxes (Details) - Provision for Income Taxes (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Provision for Income Taxes [Abstract] | ||||||||||
Current Federal income taxes | $2,276 | $2,134 | ||||||||
Deferred Federal income taxes | 368 | 212 | ||||||||
Net provision | $731 | $580 | $636 | $697 | $519 | $604 | $490 | $733 | $2,644 | $2,346 |
Note_11_Income_Taxes_Details_D
Note 11 - Income Taxes (Details) - Deferred Tax Assets and Liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets | ||
Allowance for loan losses | $2,720 | $3,035 |
Net unrealized holding losses on investment securities available-for-sale | 1,456 | |
Impaired securities | 477 | 546 |
Non-credit OTTI on investment securities available-for-sale | 204 | 302 |
Non-accrual interest income | 446 | 569 |
OREO expenses | 44 | 41 |
Deferred rent | 64 | 55 |
Deferred revenue | 27 | 33 |
Incurred but not reported (IBNR) medical expense | 39 | 24 |
Other | 48 | 13 |
Total deferred tax assets | 4,069 | 6,074 |
Deferred tax liabilities | ||
Depreciation | 90 | 231 |
Mortgage servicing rights | 171 | 176 |
Net unrealized holding gains on investment securities available-for-sale | 671 | |
Prepaid expenses | 188 | 149 |
Other | 24 | |
Total deferred tax liabilities | 1,144 | 556 |
Net deferred tax asset | $2,925 | $5,518 |
Note_11_Income_Taxes_Details_R
Note 11 - Income Taxes (Details) - Reconciliation of the Tax Provision (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Reconciliation of the Tax Provision [Abstract] | ||||||||||
Provision at statutory rate | $3,958 | $3,651 | ||||||||
Provision at statutory rate | 34.00% | 34.00% | ||||||||
Tax-exempt interest and dividend income | -1,212 | -1,249 | ||||||||
Tax-exempt interest and dividend income | -10.40% | -11.70% | ||||||||
Bank-owned life insurance | -106 | -109 | ||||||||
Bank-owned life insurance | -0.90% | -1.00% | ||||||||
Life insurance proceeds | -54 | |||||||||
Life insurance proceeds | -0.50% | |||||||||
Stock-based compensation expense | 28 | 24 | ||||||||
Stock-based compensation expense | 0.20% | 0.20% | ||||||||
Other | 30 | 29 | ||||||||
Other | 0.30% | 0.30% | ||||||||
Total provision | $731 | $580 | $636 | $697 | $519 | $604 | $490 | $733 | $2,644 | $2,346 |
Total provision | 22.70% | 21.80% |
Note_12_Employee_Benefit_Plans2
Note 12 - Employee Benefit Plans (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 12 - Employee Benefit Plans (Details) [Line Items] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 3.00% | |
Defined Contribution Plan, Safe Harbor Contribution | 5.00% | |
Defined Contribution Plan, Employer Matching Contribution, Amount | $224,000 | $203,000 |
Defined Contribution Plan, Employer Safe Harbor Contribution, Amount | $421,000 | $388,000 |
2011 Employee Stock Purchase Plan [Member] | ||
Note 12 - Employee Benefit Plans (Details) [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 10.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | 30,000 | |
Employee Stock Purchase Plan, Shares Issued Since Inception of Plan (in Shares) | 12,790 |
Note_12_Employee_Benefit_Plans3
Note 12 - Employee Benefit Plans (Details) - Employee Stock Purchase Plan (2011 Employee Stock Purchase Plan [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 12 - Employee Benefit Plans (Details) - Employee Stock Purchase Plan [Line Items] | ||
Shares (in Shares) | 3,239 | 3,692 |
Minimum [Member] | ||
Note 12 - Employee Benefit Plans (Details) - Employee Stock Purchase Plan [Line Items] | ||
Price per share | 22.32 | 20.88 |
Maximum [Member] | ||
Note 12 - Employee Benefit Plans (Details) - Employee Stock Purchase Plan [Line Items] | ||
Price per share | 23.4 | 21.74 |
Note_13_Stock_Option_Plan_Deta
Note 13 - Stock Option Plan (Details) (USD $) | 12 Months Ended | 204 Months Ended | 120 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2012 | |
Note 13 - Stock Option Plan (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 20,000 | 20,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 20,050 | 29,825 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 88,375 | 115,800 | 88,375 | 88,375 | 128,225 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | $65,000 | 65,000 | 65,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 25 months | ||||
Employee Stock Option [Member] | Minimum [Member] | The 1998 Plan [Member] | |||||
Note 13 - Stock Option Plan (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 6 months | ||||
Employee Stock Option [Member] | Maximum [Member] | The 1998 Plan [Member] | |||||
Note 13 - Stock Option Plan (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||||
Employee Stock Option [Member] | The 1998 Plan [Member] | |||||
Note 13 - Stock Option Plan (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
Employee Stock Option [Member] | The 2005 Plan [Member] | |||||
Note 13 - Stock Option Plan (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||
The 1998 Plan [Member] | |||||
Note 13 - Stock Option Plan (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 220,500 | 220,500 | 220,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 225,058 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 48,194 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 164,814 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 12,050 | 12,050 | 12,050 | ||
The 2005 Plan [Member] | |||||
Note 13 - Stock Option Plan (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 200,000 | 200,000 | 200,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 163,200 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 54,625 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 32,250 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 76,325 | 76,325 | 76,325 |
Note_13_Stock_Option_Plan_Deta1
Note 13 - Stock Option Plan (Details) - Stock Option Activity (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Stock Option Activity [Abstract] | ||
Number of options | 115,800 | 128,225 |
Weighted average exercise price | $23.51 | $22.72 |
Weighted average remaining contractual term | 1 year 354 days | |
Aggregate intrinsic value | $509 | |
Exercisable at December 31, 2014 | 38,700 | |
Exercisable at December 31, 2014 | $23.29 | |
Exercisable at December 31, 2014 | 197 days | |
Exercisable at December 31, 2014 | $248 | |
Exercised | -20,050 | -29,825 |
Exercised | $17.82 | $20.23 |
Forfeited | -27,375 | -2,600 |
Forfeited | $29.66 | $19.79 |
Granted | 20,000 | 20,000 |
Granted | $25.16 | $23.20 |
Number of options | 88,375 | 115,800 |
Weighted average exercise price | $23.27 | $23.51 |
Note_13_Stock_Option_Plan_Deta2
Note 13 - Stock Option Plan (Details) - Outstanding Stock Options (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 13 - Stock Option Plan (Details) - Outstanding Stock Options [Line Items] | |||
Options outstanding | 88,375 | 115,800 | 128,225 |
Options outstanding, exercise price | $23.27 | $23.51 | $22.72 |
Options outstanding, remaining life | 1 year 354 days | ||
Options exercisable | 38,700 | ||
Options exercisable, exercise price | $23.29 | ||
Exercise Price $17.25 [Member] | |||
Note 13 - Stock Option Plan (Details) - Outstanding Stock Options [Line Items] | |||
Options outstanding | 9,600 | ||
Options outstanding, exercise price | $17.25 | ||
Options outstanding, remaining life | 47 days | ||
Options exercisable | 9,600 | ||
Options exercisable, exercise price | $17.25 | ||
Exercise Price $19.76 [Member] | |||
Note 13 - Stock Option Plan (Details) - Outstanding Stock Options [Line Items] | |||
Options outstanding | 2,000 | ||
Options outstanding, exercise price | $19.76 | ||
Options outstanding, remaining life | 251 days | ||
Options exercisable | 2,000 | ||
Options exercisable, exercise price | $19.76 | ||
Exercise Price $20.00 [Member] | |||
Note 13 - Stock Option Plan (Details) - Outstanding Stock Options [Line Items] | |||
Options outstanding | 12,550 | ||
Options outstanding, exercise price | $20 | ||
Options outstanding, remaining life | 1 year 25 days | ||
Options exercisable | 12,550 | ||
Options exercisable, exercise price | $20 | ||
Exercise Price $21.35 [Member] | |||
Note 13 - Stock Option Plan (Details) - Outstanding Stock Options [Line Items] | |||
Options outstanding | 16,175 | ||
Options outstanding, exercise price | $21.35 | ||
Options outstanding, remaining life | 2 years 25 days | ||
Exercise Price $22.11 [Member] | |||
Note 13 - Stock Option Plan (Details) - Outstanding Stock Options [Line Items] | |||
Options outstanding | 2,500 | ||
Options outstanding, exercise price | $22.11 | ||
Options outstanding, remaining life | 1 year 240 days | ||
Options exercisable | 2,500 | ||
Options exercisable, exercise price | $22.11 | ||
Exercise Range $23.20 [Member] | |||
Note 13 - Stock Option Plan (Details) - Outstanding Stock Options [Line Items] | |||
Options outstanding | 16,850 | ||
Options outstanding, exercise price | $23.20 | ||
Options outstanding, remaining life | 3 years 21 days | ||
Exercise Price $25.16 [Member] | |||
Note 13 - Stock Option Plan (Details) - Outstanding Stock Options [Line Items] | |||
Options outstanding | 16,650 | ||
Options outstanding, exercise price | $25.16 | ||
Options outstanding, remaining life | 4 years 29 days | ||
Exercise Price $32.35 [Member] | |||
Note 13 - Stock Option Plan (Details) - Outstanding Stock Options [Line Items] | |||
Options outstanding | 12,050 | ||
Options outstanding, exercise price | $32.35 | ||
Options outstanding, remaining life | 18 days | ||
Options exercisable | 12,050 | ||
Options exercisable, exercise price | $32.35 |
Note_13_Stock_Option_Plan_Deta3
Note 13 - Stock Option Plan (Details) - Tax Benefits and Intrinsic Value Related to Stock Options Exercised (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Tax Benefits and Intrinsic Value Related to Stock Options Exercised [Abstract] | ||
Tax benefits related to stock options exercised | $29 | $2 |
Intrinsic value of stock options exercised | $161 | $91 |
Note_14_Related_Party_Transact2
Note 14 - Related Party Transactions (Details) - Related Party Transactions (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Related Party Transactions [Abstract] | |
Balance, December 31, 2013 | $2,817 |
New Loans | 10,360 |
New Loans - New Director Appointed | 8,110 |
Retired Loans - Executive Resigination | -45 |
Repayments | -9,025 |
Balance, December 31, 2014 | $12,217 |
Note_15_Commitments_and_Contin2
Note 15 - Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 15 - Commitments and Contingencies (Details) [Line Items] | ||
Operating Leases, Rent Expense, Net | $553,000 | $560,000 |
Minimum [Member] | ||
Note 15 - Commitments and Contingencies (Details) [Line Items] | ||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 1 year | |
Maximum [Member] | ||
Note 15 - Commitments and Contingencies (Details) [Line Items] | ||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years |
Note_15_Commitments_and_Contin3
Note 15 - Commitments and Contingencies (Details) - Financial Instrument Commitments (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instrument commitments | $209,772 | $191,448 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instrument commitments | 203,496 | 186,137 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instrument commitments | $6,276 | $5,311 |
Note_15_Commitments_and_Contin4
Note 15 - Commitments and Contingencies (Details) - Minimum Annual Rental Commitments (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Minimum Annual Rental Commitments [Abstract] | |
2015 | $477 |
2016 | 477 |
2017 | 423 |
2018 | 368 |
2019 | 341 |
Thereafter | $3,276 |
Note_16_Accumulated_Other_Comp2
Note 16 - Accumulated Other Comprehensive Income (Details) - Components of Accumulated Other Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Accumulated other comprehensive income (loss) | $1,375 | ($5,170) | $1,375 | ($5,170) | ||||||
Tax effect | -731 | -580 | -636 | -697 | -519 | -604 | -490 | -733 | -2,644 | -2,346 |
Accumulated other comprehensive income (loss), net of tax | 907 | -3,412 | 907 | -3,412 | ||||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||||
Unrealized net holding gains (losses) on available-for-sale securities | 1,975 | -4,281 | ||||||||
Unrealized losses on available-for-sale securities for which a portion of an other-than-temporary impairment loss has been recognized in earnings | -600 | -889 | ||||||||
Tax effect | ($468) | $1,758 |
Note_16_Accumulated_Other_Comp3
Note 16 - Accumulated Other Comprehensive Income (Details) - Amounts Reclassified Out of Accumulated Other Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Other-than-temporary impairment losses on investment securities | $43 | |||||||||
11,642 | 10,738 | |||||||||
Tax effect | 731 | 580 | 636 | 697 | 519 | 604 | 490 | 733 | 2,644 | 2,346 |
Total reclass out of accumulated other comprehensive income, net of tax | 2,486 | 2,044 | 2,172 | 2,296 | 1,962 | 2,128 | 1,894 | 2,408 | 8,998 | 8,392 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Unrealized net holding gains on available-for-sale securities | 1,112 | 867 | ||||||||
Other-than-temporary impairment losses on investment securities | -43 | |||||||||
1,112 | 824 | |||||||||
Tax effect | -378 | -280 | ||||||||
Total reclass out of accumulated other comprehensive income, net of tax | 734 | 544 | ||||||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Tax effect | $468 | ($1,758) |
Note_17_Fair_Value_Measurement2
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details) [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings (in Dollars) | $0 | $0 | |
Fair Value Inputs, Loss Severity | 95.00% | ||
Minimum Cost Saving for Refinance | 2.00% | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment (in Dollars) | 2,058,000 | 5,102,000 | |
Collateralized Debt Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details) [Line Items] | |||
Number of Trust Preferred Securities | 6 | ||
Collateralized Debt Obligations [Member] | Minimum [Member] | |||
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details) [Line Items] | |||
Fair Value Inputs, Loss Severity | 0.00% | ||
Collateralized Debt Obligations [Member] | Maximum [Member] | |||
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details) [Line Items] | |||
Fair Value Inputs, Loss Severity | 100.00% | ||
Collateralized Debt Obligations [Member] | |||
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details) [Line Items] | |||
Number of Trust Preferred Securities | 6 | ||
Partial Charged-off [Member] | |||
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details) [Line Items] | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment (in Dollars) | $2,851,000 | $27,000 | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 3.78% | ||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details) [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 8.54% |
Note_17_Fair_Value_Measurement3
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details) - Financial Assets Measured at Fair Value on a Recurring and Nonrecurring Basis (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Trading Securities | ||
State and municipal | $4,207,000 | $0 |
Securities available-for-sale | ||
Investment securities available-for-sale | 375,219,000 | 388,670,000 |
Recurring fair value measurements | 379,426,000 | 388,670,000 |
Nonrecurring fair value measurements | ||
Nonrecurring fair value measurements | 3,827,000 | 3,299,000 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Trading Securities | ||
State and municipal | 4,207,000 | |
Securities available-for-sale | ||
Investment securities available-for-sale | 72,569,000 | 87,199,000 |
US States and Political Subdivisions Debt Securities [Member] | ||
Trading Securities | ||
State and municipal | 4,207,000 | |
Securities available-for-sale | ||
Investment securities available-for-sale | 72,569,000 | 87,199,000 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 62,665,000 | 71,639,000 |
US Government Agencies Debt Securities [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 62,665,000 | 71,639,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 136,192,000 | 139,723,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 136,192,000 | 139,723,000 |
Collateralized Mortgage Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 87,662,000 | 75,394,000 |
Collateralized Mortgage Obligations [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 87,662,000 | 75,394,000 |
Collateralized Debt Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 2,439,000 | 2,069,000 |
Collateralized Debt Obligations [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 2,439,000 | 2,069,000 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 6,037,000 | 6,021,000 |
Corporate Debt Securities [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 6,037,000 | 6,021,000 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 7,655,000 | 6,625,000 |
Equity Securities [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 7,655,000 | 6,625,000 |
Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 7,655,000 | 6,625,000 |
Recurring fair value measurements | 7,655,000 | 6,625,000 |
Fair Value, Inputs, Level 2 [Member] | ||
Trading Securities | ||
State and municipal | 4,207,000 | |
Securities available-for-sale | ||
Investment securities available-for-sale | 365,125,000 | 379,976,000 |
Recurring fair value measurements | 369,332,000 | 379,976,000 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||
Nonrecurring fair value measurements | ||
Nonrecurring fair value measurements | 3,715,000 | 3,107,000 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | ||
Nonrecurring fair value measurements | ||
Nonrecurring fair value measurements | 112,000 | 192,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale | ||
Investment securities available-for-sale | 2,439,000 | 2,069,000 |
Recurring fair value measurements | 2,439,000 | 2,069,000 |
Nonrecurring fair value measurements | ||
Nonrecurring fair value measurements | 3,827,000 | 3,299,000 |
Impaired Loans [Member] | ||
Nonrecurring fair value measurements | ||
Nonrecurring fair value measurements | 3,715,000 | 3,107,000 |
Mortgage Servicing Rights [Member] | ||
Nonrecurring fair value measurements | ||
Nonrecurring fair value measurements | $112,000 | $192,000 |
Note_17_Fair_Value_Measurement4
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details) - Quantitative Information about Assets Measured at Fair Value (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value (in Dollars) | 3,827 | 3,299 | ||
Market Approach Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Minimum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Appraisal adjustments | 20.00% | [1],[2] | 10.00% | [1],[2] |
Liquidation expenses | 0.00% | [3] | ||
Market Approach Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Maximum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Appraisal adjustments | 100.00% | [1],[2] | 30.00% | [1],[2] |
Liquidation expenses | 10.00% | [3] | ||
Market Approach Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value (in Dollars) | 953 | [1],[2] | 3,107 | [1],[2] |
Liquidation expenses | 10.00% | [3] | ||
Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value (in Dollars) | 112 | [4] | ||
Discount rate | 6.38% | |||
Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | Minimum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Remaining term | 2 years | 3 years | ||
Discount rate | 10.00% | 10.00% | ||
Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | Maximum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Remaining term | 28 years | 29 years | ||
Discount rate | 12.00% | 12.00% | ||
Discounted Cash Flow Valuation Technique [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value (in Dollars) | 112 | 192 | ||
Agreement of Sale [Member] | Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value (in Dollars) | 2,650 | [5] | ||
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value (in Dollars) | 3,715 | 3,107 | ||
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value (in Dollars) | 112 | 192 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value (in Dollars) | 3,827 | 3,299 | ||
Impaired Loans [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value (in Dollars) | 3,715 | 3,107 | ||
Mortgage Servicing Rights [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair Value (in Dollars) | 112 | 192 | ||
[1] | Fair value is primarily determined through appraisals of the underlying collateral by independent parties, which generally includes various level 3 inputs which are not always identifiable. | |||
[2] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and the age of the appraisal. The range is presented as a percent of the initial appraised value. | |||
[3] | Appraisals and pending agreements of sale are adjusted by management for estimated liquidation expenses. The range is presented as a percent of the initial appraised value. | |||
[4] | Fair value is determined using the cash flow of the borrower and the effective interest rate of the original note. | |||
[5] | Fair value is determined by the net amount due. |
Note_17_Fair_Value_Measurement5
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details) - Available-for-sale Securities Measured at Fair Value Using Significant Unobservable Inputs (Fair Value, Inputs, Level 3 [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance, beginning of year | $2,069 | $1,962 |
Included in other comprehensive income | 370 | 107 |
Balance, end of year | $2,439 | $2,069 |
Note_17_Fair_Value_Measurement6
Note 17 - Fair Value Measurements and Fair Values of Financial Instruments (Details) - Financial and Off-balance Sheet Instruments (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial assets | |||
Cash and cash equivalents | $18,245,000 | $16,286,000 | $15,453,000 |
Cash and cash equivalents | 18,245,000 | 16,286,000 | |
Investment securities: | |||
Trading | 4,207,000 | 0 | |
Investment securities available-for-sale | 375,219,000 | 388,670,000 | |
Held-to-maturity | 146,000 | 146,000 | |
Held-to-maturity | 156,000 | 162,000 | |
Restricted investment in bank stocks | 647,000 | 1,764,000 | |
Loans held-for-sale | 380,000 | ||
Loans held-for-sale | 394,000 | ||
Net loans | 547,281,000 | 492,791,000 | |
Net loans | 544,126,000 | 491,635,000 | |
Mortgage servicing rights | 504,000 | 519,000 | |
Mortgage servicing rights | 601,000 | 643,000 | |
Accrued interest receivable | 2,568,000 | 2,579,000 | |
Accrued interest receivable | 2,568,000 | 2,579,000 | |
Financial liabilities | |||
Deposits with no stated maturities | 851,592,000 | 814,532,000 | |
Short-term borrowings | 35,189,000 | 35,156,000 | |
Short-term borrowings | 35,189,000 | 35,156,000 | |
Long-term debt | 5,000,000 | ||
Long-term debt | 5,056,000 | ||
Accrued interest payable | 344,000 | 392,000 | |
Accrued interest payable | 344,000 | 392,000 | |
With No Stated Maturities [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Financial liabilities | |||
Deposits with no stated maturities | 608,345,000 | 574,987,000 | |
With No Stated Maturities [Member] | |||
Financial liabilities | |||
Deposits with no stated maturities | 608,345,000 | 574,987,000 | |
Deposits with no stated maturities | 608,345,000 | 574,987,000 | |
With Stated Maturities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Financial liabilities | |||
Deposits with no stated maturities | 244,152,000 | 241,959,000 | |
With Stated Maturities [Member] | |||
Financial liabilities | |||
Deposits with no stated maturities | 243,247,000 | 239,545,000 | |
Deposits with no stated maturities | 244,152,000 | 241,959,000 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets | |||
Cash and cash equivalents | 18,245,000 | 16,286,000 | |
Investment securities: | |||
Investment securities available-for-sale | 7,655,000 | 6,625,000 | |
Financial liabilities | |||
Short-term borrowings | 35,189,000 | 35,156,000 | |
Fair Value, Inputs, Level 2 [Member] | |||
Investment securities: | |||
Trading | 4,207,000 | ||
Investment securities available-for-sale | 365,125,000 | 379,976,000 | |
Held-to-maturity | 156,000 | 162,000 | |
Restricted investment in bank stocks | 647,000 | 1,764,000 | |
Loans held-for-sale | 394,000 | ||
Accrued interest receivable | 2,568,000 | 2,579,000 | |
Accrued interest receivable | 2,568,000 | 2,579,000 | |
Financial liabilities | |||
Long-term debt | 5,056,000 | ||
Accrued interest payable | 344,000 | 392,000 | |
Fair Value, Inputs, Level 3 [Member] | |||
Investment securities: | |||
Investment securities available-for-sale | 2,439,000 | 2,069,000 | |
Net loans | 544,126,000 | 491,635,000 | |
Mortgage servicing rights | $601,000 | $643,000 |
Note_18_Parent_Company_Financi2
Note 18 - Parent Company Financial Information (Details) - Condensed Balance Sheet (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and cash equivalents | $18,245,000 | $16,286,000 | $15,453,000 |
Investment securities available-for-sale | 375,219,000 | 388,670,000 | |
Other assets | 8,082,000 | 10,365,000 | |
Total assets | 977,135,000 | 932,883,000 | |
Other liabilities | 3,656,000 | 2,178,000 | |
Shareholders' equity | 86,354,000 | 75,625,000 | 77,623,000 |
Total liabilities and shareholders' equity | 977,135,000 | 932,883,000 | |
Parent Company [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Cash and cash equivalents | 48,000 | 24,000 | 102,000 |
Investment securities available-for-sale | 7,655,000 | 6,625,000 | |
Investment in subsidiary | 79,112,000 | 69,215,000 | |
Other assets | 3,000 | 15,000 | |
Total assets | 86,818,000 | 75,879,000 | |
Other liabilities | 464,000 | 254,000 | |
Shareholders' equity | 86,354,000 | 75,625,000 | |
Total liabilities and shareholders' equity | $86,818,000 | $75,879,000 |
Note_18_Parent_Company_Financi3
Note 18 - Parent Company Financial Information (Details) - Condensed Statement of Income (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statements, Captions [Line Items] | ||||||||||
Income before applicable income taxes and equity in undistributed income of subsidiary | $3,217,000 | $2,624,000 | $2,808,000 | $2,993,000 | $2,481,000 | $2,732,000 | $2,384,000 | $3,141,000 | $11,642,000 | $10,738,000 |
Provision for income taxes | 731,000 | 580,000 | 636,000 | 697,000 | 519,000 | 604,000 | 490,000 | 733,000 | 2,644,000 | 2,346,000 |
Net income | 2,486,000 | 2,044,000 | 2,172,000 | 2,296,000 | 1,962,000 | 2,128,000 | 1,894,000 | 2,408,000 | 8,998,000 | 8,392,000 |
Parent Company [Member] | ||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||
Dividends from subsidiary | 2,925,000 | 3,512,000 | ||||||||
Interest, dividend and other income | 142,000 | 99,000 | ||||||||
Securities gains | 1,045,000 | 629,000 | ||||||||
Total income | 4,112,000 | 4,240,000 | ||||||||
Expenses | 313,000 | 285,000 | ||||||||
Income before applicable income taxes and equity in undistributed income of subsidiary | 3,799,000 | 3,955,000 | ||||||||
Provision for income taxes | 292,000 | 151,000 | ||||||||
Income before equity in undistributed income of subsidiary | 3,507,000 | 3,804,000 | ||||||||
Equity in undistributed income of subsidiary | 5,491,000 | 4,588,000 | ||||||||
Net income | $8,998,000 | $8,392,000 |
Note_18_Parent_Company_Financi4
Note 18 - Parent Company Financial Information (Details) - Condensed Statement of Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Note 18 - Parent Company Financial Information (Details) - Condensed Statement of Comprehensive Income [Line Items] | ||||||||||
Net income | $11,642 | $10,738 | ||||||||
Net income | 2,276 | 2,134 | ||||||||
Net income | 2,486 | 2,044 | 2,172 | 2,296 | 1,962 | 2,128 | 1,894 | 2,408 | 8,998 | 8,392 |
Net unrealized holding gains (losses) on securities: | ||||||||||
Unrealized holding gains (losses) arising during the period | 7,657 | -11,098 | ||||||||
Unrealized holding gains (losses) arising during the period | 2,604 | -3,774 | ||||||||
Unrealized holding gains (losses) arising during the period | 5,053 | -7,324 | ||||||||
Reclassification adjustment for gains included in net income | -1,112 | -824 | ||||||||
Reclassification adjustment for gains included in net income | 378 | 280 | ||||||||
Reclassification adjustment for gains included in net income | -734 | -544 | ||||||||
Other comprehensive income (loss) | 6,545 | -11,922 | ||||||||
Other comprehensive income (loss) | -2,226 | 4,054 | ||||||||
Other comprehensive income (loss) | 4,319 | -7,868 | ||||||||
Total comprehensive income (loss) | 18,187 | -1,184 | ||||||||
Total comprehensive income (loss) | 4,870 | -1,708 | ||||||||
Parent Company [Member] | ||||||||||
Note 18 - Parent Company Financial Information (Details) - Condensed Statement of Comprehensive Income [Line Items] | ||||||||||
Net income | 11,642 | 10,738 | ||||||||
Net income | 2,644 | 2,346 | ||||||||
Net income | 8,998 | 8,392 | ||||||||
Net unrealized holding gains (losses) on securities: | ||||||||||
Unrealized holding gains (losses) arising during the period | 7,657 | -11,098 | ||||||||
Unrealized holding gains (losses) arising during the period | 2,604 | -3,774 | ||||||||
Unrealized holding gains (losses) arising during the period | 5,053 | -7,324 | ||||||||
Reclassification adjustment for gains included in net income | -1,112 | -824 | ||||||||
Reclassification adjustment for gains included in net income | -378 | -280 | ||||||||
Reclassification adjustment for gains included in net income | -734 | -544 | ||||||||
Other comprehensive income (loss) | 6,545 | -11,922 | ||||||||
Other comprehensive income (loss) | 2,226 | -4,054 | ||||||||
Other comprehensive income (loss) | 4,319 | -7,868 | ||||||||
Total comprehensive income (loss) | 18,187 | -1,184 | ||||||||
Total comprehensive income (loss) | 4,870 | -1,708 | ||||||||
Total comprehensive income (loss) | $13,317 | $524 |
Note_18_Parent_Company_Financi5
Note 18 - Parent Company Financial Information (Details) - Condensed Statement of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Activities | ||
Net income | $8,998 | $8,392 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net securities gains | -1,112 | -824 |
Stock-based compensation expense | 83 | 71 |
Increase in other liabilities | 122 | -173 |
Decrease in other assets | -100 | 4,140 |
Deferred income tax provision | -368 | -212 |
Net cash provided by operating activities | 5,977 | 17,323 |
Investing activities | ||
Purchase of investment securities | -92,017 | -130,213 |
Proceeds from sale of investment securities | 29,972 | 19,559 |
Net cash used by investing activities | -33,440 | -29,172 |
Financing activities | ||
Cash dividend paid | -3,328 | -3,130 |
Proceeds from issuance of common stock | 628 | 535 |
Tax benefit from exercise of stock options | 29 | 2 |
Net cash used by financing activities | 29,422 | 12,682 |
Increase (decrease) in cash and cash equivalents | 1,959 | 833 |
Cash and cash equivalents at beginning of year | 16,286 | 15,453 |
Cash and cash equivalents at end of year | 18,245 | 16,286 |
Parent Company [Member] | ||
Operating Activities | ||
Net income | 8,998 | 8,392 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in undistributed income from subsidiary | -5,491 | -4,588 |
Net securities gains | -1,045 | -629 |
Stock-based compensation expense | 83 | 71 |
Increase in other liabilities | 225 | |
Decrease in other assets | 12 | 443 |
Deferred income tax provision | 29 | |
Net cash provided by operating activities | 2,811 | 3,689 |
Investing activities | ||
Purchase of investment securities | -4,955 | -3,763 |
Proceeds from sale of investment securities | 4,839 | 2,589 |
Net cash used by investing activities | -116 | -1,174 |
Financing activities | ||
Cash dividend paid | -3,328 | -3,130 |
Proceeds from issuance of common stock | 628 | 535 |
Tax benefit from exercise of stock options | 29 | 2 |
Net cash used by financing activities | -2,671 | -2,593 |
Increase (decrease) in cash and cash equivalents | 24 | -78 |
Cash and cash equivalents at beginning of year | 24 | 102 |
Cash and cash equivalents at end of year | $48 | $24 |
Note_19_Regulatory_Restriction2
Note 19 - Regulatory Restrictions (Details) - Capital Ratios and Regulatory Minimum Requirements (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Consolidated Entities [Member] | ||
Total risk-based capital (to risk-weighted assets): | ||
Risk-based capital (to risk-weighted assets) actual amount | $93,927 | $87,330 |
Risk-based capital (to risk-weighted assets) actual ratio | 14.06% | 14.01% |
Risk-based capital (to risk-weighted assets) adequately capitalized amount | 53,425 | 49,871 |
Risk-based capital (to risk-weighted assets) adequately capitalized ratio | 8.00% | 8.00% |
Risk-based capital (to risk-weighted assets) well capitalized amount | ||
Risk-based capital (to risk-weighted assets) well capitalized ratio | ||
Tier 1 capital (to risk-weighted assets): | ||
Tier i capital (to risk-weighted assets) actual amount | 85,439 | 79,037 |
Tier i capital (to risk-weighted assets) actual ratio | 12.79% | 12.68% |
Tier i capital (to risk-weighted assets) adequately capitalized amount | 26,713 | 24,936 |
Tier i capital (to risk-weighted assets) adequately capitalized ratio | 4.00% | 4.00% |
Tier i capital (to risk-weighted assets) well capitalized amount | ||
Tier i capital (to risk-weighted assets) well capitalized ratio | ||
Tier 1 capital (to average assets): | ||
Tier i capital (to average assets) actual amount | 85,439 | 79,037 |
Tier i capital (to average assets) actual ratio | 8.65% | 8.45% |
Tier i capital (to average assets) adequately capitalized amount | 39,501 | 37,419 |
Tier i capital (to average assets) adequately capitalized ratio | 4.00% | 4.00% |
Tier i capital (to average assets) well capitalized amount | ||
Tier i capital (to average assets) well capitalized ratio | ||
Bank [Member] | ||
Total risk-based capital (to risk-weighted assets): | ||
Risk-based capital (to risk-weighted assets) actual amount | 86,884 | 81,076 |
Risk-based capital (to risk-weighted assets) actual ratio | 13.14% | 13.13% |
Risk-based capital (to risk-weighted assets) adequately capitalized amount | 52,891 | 49,402 |
Risk-based capital (to risk-weighted assets) adequately capitalized ratio | 8.00% | 8.00% |
Risk-based capital (to risk-weighted assets) well capitalized amount | 66,114 | 61,753 |
Risk-based capital (to risk-weighted assets) well capitalized ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets): | ||
Tier i capital (to risk-weighted assets) actual amount | 78,824 | 73,342 |
Tier i capital (to risk-weighted assets) actual ratio | 11.92% | 11.88% |
Tier i capital (to risk-weighted assets) adequately capitalized amount | 26,446 | 24,701 |
Tier i capital (to risk-weighted assets) adequately capitalized ratio | 4.00% | 4.00% |
Tier i capital (to risk-weighted assets) well capitalized amount | 39,669 | 37,052 |
Tier i capital (to risk-weighted assets) well capitalized ratio | 6.00% | 6.00% |
Tier 1 capital (to average assets): | ||
Tier i capital (to average assets) actual amount | 78,824 | 73,342 |
Tier i capital (to average assets) actual ratio | 8.04% | 7.88% |
Tier i capital (to average assets) adequately capitalized amount | 39,237 | 37,215 |
Tier i capital (to average assets) adequately capitalized ratio | 4.00% | 4.00% |
Tier i capital (to average assets) well capitalized amount | $49,047 | $46,518 |
Tier i capital (to average assets) well capitalized ratio | 5.00% | 5.00% |
Note_20_Consolidated_Quarterly2
Note 20 - Consolidated Quarterly Financial Data (Unaudited) (Details) - Unaudited Quarterly Results of Operations (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||||
Unaudited Quarterly Results of Operations [Abstract] | ||||||||||||||||||
Interest income | $7,814 | $7,741 | $7,588 | $7,527 | $7,606 | $7,678 | $7,624 | $7,676 | $30,670 | $30,584 | ||||||||
Interest expense | 1,163 | 1,156 | 1,091 | 1,134 | 1,176 | 1,226 | 1,288 | 1,343 | 4,544 | 5,033 | ||||||||
Net interest income | 6,651 | 6,585 | 6,497 | 6,393 | 6,430 | 6,452 | 6,336 | 6,333 | 26,126 | 25,551 | ||||||||
Provision for loan losses | 400 | 150 | 150 | 100 | 400 | 400 | ||||||||||||
Non-interest income | 2,588 | 1,517 | 1,625 | 1,812 | 1,273 | 1,553 | 1,239 | 1,748 | 7,542 | 5,813 | ||||||||
Non-interest expense | 5,622 | 5,478 | 5,314 | 5,212 | 5,072 | 5,123 | 5,091 | 4,940 | 21,626 | 20,226 | ||||||||
Income before income taxes | 3,217 | 2,624 | 2,808 | 2,993 | 2,481 | 2,732 | 2,384 | 3,141 | 11,642 | 10,738 | ||||||||
Provision for income taxes | 731 | 580 | 636 | 697 | 519 | 604 | 490 | 733 | 2,644 | 2,346 | ||||||||
Net Income | $2,486 | $2,044 | $2,172 | $2,296 | $1,962 | $2,128 | $1,894 | $2,408 | $8,998 | $8,392 | ||||||||
Earnings Per Share - basic * (in Dollars per share) | $0.75 | [1] | $0.62 | [1] | $0.66 | [1] | $0.70 | [1] | $0.60 | [1] | $0.65 | [1] | $0.58 | [1] | $0.75 | [1] | $2.73 | $2.58 |
Earnings Per Share - diluted * (in Dollars per share) | $0.75 | [1] | $0.62 | [1] | $0.66 | [1] | $0.70 | [1] | $0.60 | [1] | $0.65 | [1] | $0.58 | [1] | $0.74 | [1] | $2.72 | $2.57 |
[1] | Due to rounding, quarterly earnings per share may not sum to annual earnings per share |