Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 01, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | QNB CORP | |
Entity Central Index Key | 750,558 | |
Trading Symbol | qnbc | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 3,401,488 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 12,437 | $ 9,159 |
Interest-bearing deposits in banks | 56,991 | 7,832 |
Total cash and cash equivalents | 69,428 | 16,991 |
Investment securities | ||
Trading | 4,312 | 4,189 |
Available-for-sale (amortized cost $365,367 and $362,742) | 368,834 | 361,915 |
Held-to-maturity (fair value $147 and $151) | 147 | 147 |
Restricted investment in bank stocks | 522 | 508 |
Loans held-for-sale | 456 | 987 |
Loans receivable | 608,231 | 615,270 |
Allowance for loan losses | (7,593) | (7,554) |
Net loans | 600,638 | 607,716 |
Bank-owned life insurance | 11,206 | 10,978 |
Premises and equipment, net | 8,777 | 9,257 |
Accrued interest receivable | 2,573 | 2,562 |
Net deferred tax assets | 2,334 | 3,673 |
Other assets | 2,704 | 2,013 |
Total assets | 1,071,931 | 1,020,936 |
Deposits | ||
Demand, non-interest bearing | 105,029 | 98,543 |
Interest-bearing demand | 291,228 | 274,925 |
Money market | 72,756 | 67,172 |
Savings | 229,323 | 221,770 |
Time | 132,128 | 135,251 |
Time of $100 or more | 96,248 | 92,125 |
Total deposits | 926,712 | 889,786 |
Short-term borrowings | 41,179 | 37,163 |
Accrued interest payable | 310 | 330 |
Other liabilities | 5,734 | 3,214 |
Total liabilities | 973,935 | 930,493 |
Shareholders' Equity | ||
Common stock, par value $0.625 per share; authorized 10,000,000 shares; 3,564,657 shares and 3,524,363 shares issued; 3,400,088 and 3,359,794 shares outstanding | 2,228 | 2,203 |
Surplus | 17,057 | 15,973 |
Retained earnings | 78,899 | 75,289 |
Accumulated other comprehensive income (loss), net of tax | 2,288 | (546) |
Treasury stock, at cost; 164,569 shares | (2,476) | (2,476) |
Total shareholders' equity | 97,996 | 90,443 |
Total liabilities and shareholders' equity | $ 1,071,931 | $ 1,020,936 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Available-for-sale, amortized cost | $ 365,367 | $ 362,742 |
Held-to-maturity, fair value | $ 147 | $ 151 |
Common stock, par value (in dollars per share) | $ 0.625 | $ 0.625 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 3,564,657 | 3,524,363 |
Common stock, shares outstanding (in shares) | 3,400,088 | 3,359,794 |
Treasury stock, shares (in shares) | 164,569 | 164,569 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income | ||||
Interest and fees on loans | $ 6,376 | $ 6,302 | $ 19,060 | $ 18,148 |
Interest and dividends on investment securities (AFS & HTM): | ||||
Taxable | 1,317 | 1,242 | 3,964 | 3,840 |
Tax-exempt | 478 | 519 | 1,483 | 1,474 |
Interest on trading securities | 36 | 43 | 106 | 124 |
Interest on interest-bearing balances and other interest income | 80 | 32 | 138 | 105 |
Total interest income | 8,287 | 8,138 | 24,751 | 23,691 |
Interest on deposits | ||||
Interest-bearing demand | 177 | 170 | 492 | 490 |
Money market | 48 | 40 | 142 | 114 |
Savings | 233 | 204 | 688 | 600 |
Time | 378 | 381 | 1,122 | 1,166 |
Time of $100 or more | 330 | 300 | 967 | 890 |
Interest on short-term borrowings | 36 | 28 | 115 | 87 |
Total interest expense | 1,202 | 1,123 | 3,526 | 3,347 |
Net interest income | 7,085 | 7,015 | 21,225 | 20,344 |
Provision for loan losses | 125 | 60 | ||
Net interest income after provision for loan losses | 7,085 | 7,015 | 21,100 | 20,284 |
Non-interest income | ||||
Total other-than-temporary impairment loss on investment securities | 0 | 0 | (192) | |
Net other-than temporary impairment losses on investment securities | (192) | |||
Net gain on sale of investment securities | 316 | 83 | 842 | 800 |
Net gain on investment securities | 316 | 83 | 650 | 800 |
Net (loss) gain on trading activities | (39) | 36 | 47 | 17 |
Fees for services to customers | 425 | 434 | 1,205 | 1,240 |
ATM and debit card | 419 | 397 | 1,229 | 1,153 |
Retail brokerage and advisory | 129 | 180 | 425 | 557 |
Bank-owned life insurance | 73 | 73 | 217 | 215 |
Merchant | 86 | 75 | 242 | 226 |
Net gain on sale of loans | 143 | 120 | 263 | 302 |
Other | 92 | 95 | 316 | 259 |
Total non-interest income | 1,644 | 1,493 | 4,594 | 4,769 |
Non-interest expense | ||||
Salaries and employee benefits | 3,072 | 2,911 | 9,114 | 8,960 |
Net occupancy | 438 | 427 | 1,305 | 1,336 |
Furniture and equipment | 437 | 424 | 1,302 | 1,285 |
Marketing | 220 | 174 | 681 | 596 |
Third party services | 440 | 389 | 1,246 | 1,235 |
Telephone, postage and supplies | 189 | 182 | 549 | 551 |
State taxes | 178 | 173 | 499 | 520 |
FDIC insurance premiums | 162 | 162 | 489 | 479 |
Other | 480 | 731 | 1,543 | 1,802 |
Total non-interest expense | 5,616 | 5,573 | 16,728 | 16,764 |
Income before income taxes | 3,113 | 2,935 | 8,966 | 8,289 |
Provision for income taxes | 821 | 715 | 2,311 | 1,999 |
Net income | $ 2,292 | $ 2,220 | $ 6,655 | $ 6,290 |
Earnings per share - basic | $ 0.68 | $ 0.66 | $ 1.97 | $ 1.89 |
Earnings per share - diluted | 0.67 | 0.66 | 1.96 | 1.88 |
Cash dividends per share | $ 0.30 | $ 0.29 | $ 0.90 | $ 0.87 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 3,113 | $ 2,935 | $ 8,966 | $ 8,289 |
Net unrealized holding (losses) gains on securities: | ||||
Unrealized holding (losses) gains arising during the period | (875) | 1,547 | 4,944 | 1,333 |
Reclassification adjustment for gains included in net income | (316) | (83) | (650) | (800) |
Other comprehensive (loss) income | (1,191) | 1,464 | 4,294 | 533 |
Unrealized holding (losses) gains arising during the period | (298) | 526 | 1,681 | 453 |
Reclassification adjustment for gains included in net income | (107) | (29) | (221) | (273) |
Other comprehensive (loss) income | (405) | 497 | 1,460 | 180 |
Unrealized holding (losses) gains arising during the period | (577) | 1,021 | 3,263 | 880 |
Reclassification adjustment for gains included in net income | (209) | (54) | (429) | (527) |
Other comprehensive (loss) income | (786) | 967 | 2,834 | 353 |
Total comprehensive income | 1,922 | 4,399 | 13,260 | 8,822 |
Net income | 821 | 715 | 2,311 | 1,999 |
Total comprehensive income | 416 | 1,212 | 3,771 | 2,179 |
Net income | 2,292 | 2,220 | 6,655 | 6,290 |
Total comprehensive income | $ 1,506 | $ 3,187 | $ 9,489 | $ 6,643 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Common Stock [Member]Employee Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] |
Balance (in shares) at Dec. 31, 2014 | 3,316,658 | ||||||
Balance at Dec. 31, 2014 | $ 86,354 | $ 2,176 | $ 14,819 | $ 70,928 | $ 907 | $ (2,476) | |
Net income | 6,290 | 6,290 | |||||
Other comprehensive income, net of tax | 353 | 353 | |||||
Cash dividends declared ($0.90 per share) | (2,901) | (2,901) | |||||
Stock issued in connection with dividend reinvestment and stock purchase plan (in shares) | 23,796 | 1,721 | |||||
Stock issued in connection with dividend reinvestment and stock purchase plan | 667 | $ 15 | 652 | ||||
Stock issued for employee stock purchase plan | $ 43 | $ 1 | 42 | ||||
Stock issued for options exercised (in shares) | 12,150 | 8,302 | |||||
Stock issued for options exercised | $ 106 | $ 5 | 101 | ||||
Tax benefit of stock options exercised | 20 | 20 | |||||
Stock-based compensation expense | 64 | 64 | |||||
Balance (in shares) at Sep. 30, 2015 | 3,350,477 | ||||||
Balance at Sep. 30, 2015 | $ 90,996 | $ 2,197 | 15,698 | 74,317 | 1,260 | (2,476) | |
Balance (in shares) at Dec. 31, 2015 | 3,359,794 | 3,359,794 | |||||
Balance at Dec. 31, 2015 | $ 90,443 | $ 2,203 | 15,973 | 75,289 | (546) | (2,476) | |
Net income | 6,655 | 6,655 | |||||
Other comprehensive income, net of tax | 2,834 | 2,834 | |||||
Cash dividends declared ($0.90 per share) | (3,045) | (3,045) | |||||
Stock issued in connection with dividend reinvestment and stock purchase plan (in shares) | 24,886 | 1,540 | |||||
Stock issued in connection with dividend reinvestment and stock purchase plan | 753 | $ 15 | 738 | ||||
Stock issued for employee stock purchase plan | $ 41 | $ 1 | 40 | ||||
Stock issued for options exercised (in shares) | 18,425 | 13,868 | |||||
Stock issued for options exercised | $ 243 | $ 9 | 234 | ||||
Tax benefit of stock options exercised | 12 | 12 | |||||
Stock-based compensation expense | $ 60 | 60 | |||||
Balance (in shares) at Sep. 30, 2016 | 3,400,088 | 3,400,088 | |||||
Balance at Sep. 30, 2016 | $ 97,996 | $ 2,228 | $ 17,057 | $ 78,899 | $ 2,288 | $ (2,476) |
Consolidated Statement of Shar7
Consolidated Statement of Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Retained Earnings [Member] | ||
Cash dividends declared, per share (in dollars per share) | $ 0.90 | $ 0.87 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | ||
Net income | $ 6,655 | $ 6,290 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 668 | 769 |
Provision for loan losses | 125 | 60 |
Net gain on investment securities available-for-sale | (650) | (800) |
Net (gain) loss on sale of other real estate owned, repossessed assets and premises and equipment | (2) | 17 |
Net gain on sale of loans | (263) | (302) |
Proceeds from sales of residential mortgages held-for-sale | 7,188 | 9,595 |
Origination of residential mortgages held-for-sale | (6,394) | (9,233) |
Income on bank-owned life insurance | (217) | (215) |
Stock-based compensation expense | 60 | 64 |
Net (increase) decrease in trading securities | (123) | 582 |
Deferred income tax provision | (121) | 66 |
Net increase in income taxes payable | 141 | 17 |
Net (increase) decrease in accrued interest receivable | (11) | 13 |
Amortization of mortgage servicing rights and change in valuation allowance | 59 | 53 |
Net amortization of premiums and discounts on investment securities | 1,396 | 1,583 |
Net decrease in accrued interest payable | (20) | (21) |
Increase in other assets | (775) | (364) |
Increase (decrease) in other liabilities | 329 | (908) |
Net cash provided by operating activities | 8,045 | 7,266 |
Investing Activities | ||
Proceeds from payments, maturities and calls of investment securities available-for-sale | 85,046 | 68,472 |
Proceeds from the sale of investment securities available-for-sale | 31,892 | 27,480 |
Purchases of investment securities available-for-sale | (118,245) | (79,565) |
Proceeds from redemption of investment in restricted bank stock | 1,482 | 1,318 |
Purchase of restricted bank stock | (1,496) | (1,179) |
Net decrease (increase) in loans | 6,953 | (27,580) |
Net purchases of premises and equipment | (188) | (413) |
Proceeds from sales of other real estate owned and repossessed assets | 2 | 3,244 |
Net cash provided by (used in) investing activities | 5,446 | (8,223) |
Financing Activities | ||
Net increase in non-interest bearing deposits | 6,486 | 11,172 |
Net increase in interest-bearing deposits | 30,440 | 45,910 |
Net increase (decrease) in short-term borrowings | 4,016 | (2,601) |
Tax benefit from exercise of stock options | 12 | 20 |
Cash dividends paid, net of reinvestment | (2,662) | (2,579) |
Proceeds from issuance of common stock | 654 | 494 |
Net cash provided by financing activities | 38,946 | 52,416 |
Increase in cash and cash equivalents | 52,437 | 51,459 |
Cash and cash equivalents at beginning of year | 16,991 | 16,991 |
Cash and cash equivalents at end of period | 69,428 | 68,450 |
Supplemental Cash Flow Disclosures | ||
Interest paid | 3,546 | 3,368 |
Income taxes paid | 2,227 | 1,904 |
Non-cash transactions: | ||
Transfer of loans to repossessed assets or other real estate owned | 215 | |
Unsettled trades to purchase securities | $ 2,558 | $ 3,987 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements include the accounts of QNB Corp. and its wholly-owned subsidiary, QNB Bank (the “Bank”). The consolidated entity is referred to herein as “QNB” or the “Company”. All significant intercompany accounts and transactions are eliminated in the consolidated financial statements. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in QNB's 2015 Annual Report incorporated in the Form 10-K. Operating results for the three and nine month periods ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The unaudited consolidated financial statements reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the results of operations for the period and are of a normal and recurring nature. Tabular information, other than share and per share data, is presented in thousands of dollars. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from such estimates. The Company has evaluated events and transactions occurring subsequent to the balance sheet date of September 30, 2016, for items that should potentially be recognized or disclosed in these financial statements. |
Note 2 - Recent Accounting Pron
Note 2 - Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | 2. RECENT ACCOUNTING PRONOUNCEMENTS On February 25, 2016, the FASB issued ASU 2016-02, Leases (Topic 842) On March 15, 2016, the FASB issued ASU 2016-07, Investments – Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting On March 17, 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue Gross versus Net) On March 30, 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting On June 16, 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) To that end, the new guidance: • Eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, reflects an organization’s current estimate of all expected credit losses over the contractual term of its financial assets • Broadens the information an entity can consider when measuring credit losses to include forward-looking information • Increases usefulness of the financial statements by requiring timely inclusion of forecasted information in forming expectations of credit losses • Increases comparability of purchased financial assets with credit deterioration (PCD assets) with other purchased assets that do not have credit deterioration as well as originated assets because credit losses that are expected will be recorded through an allowance for credit losses for all assets • Increases users’ understanding of underwriting standards and credit quality trends by requiring additional information about credit quality indicators by year of origination (vintage) • For available-for-sale debt securities, aligns the income statement recognition of credit losses with the reporting period in which changes occur by recording credit losses (and subsequent changes in credit losses) through an allowance rather than a write down The new guidance affects organizations that hold financial assets and net investments in leases that are not accounted for at fair value with changes in fair value reported in net income. The new guidance affects loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. QNB is evaluating the impact of this new standard on its consolidated financial statements. |
Note 3 - Stock-based Compensati
Note 3 - Stock-based Compensation and Shareholders' Equity | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
STOCK-BASED COMPENSATION AND SHAREHOLDERS’ EQUITY | 3. STOCK-BASED COMPENSATION AND SHAREHOLDERS’ EQUITY QNB sponsors 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. 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 $18,000 for both the three months ended September 30, 2016 and 2015. Stock-based compensation expense was $60,000 and $64,000 for the nine months ended September 30, 2016 and 2015, respectively. As of September 30, 2016, there was approximately $102,000 of unrecognized compensation cost related to unvested share-based compensation award grants that is expected to be recognized over the next 29 months. Options are granted to certain employees at prices equal to the market value of the stock on the date the options are granted. The 1998 Plan authorized the issuance of 220,500 shares. The time period during 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 September 30, 2016, there were 225,058 options granted, 60,244 options forfeited, 164,814 options exercised and no remaining options outstanding under this Plan. The 1998 Plan expired on March 10, 2008. The 2005 Plan authorized the issuance of 200,000 shares. The terms of the 2005 Plan are identical to the 1998 Plan, except options expire five years after the grant date. As of September 30, 2016, there were 184,200 options granted, 65,050 options forfeited, 64,425 options exercised, and 54,725 options outstanding under this Plan. The 2005 Plan expired on March 15, 2015. The 2015 Plan authorizes the issuance of 300,000 shares. The terms of the 2015 Plan are identical to the 2005 Plan. There were 23,500 options granted and outstanding under this Plan as of September 30, 2016. There were no options forfeited or exercised as of September 30, 2016. The 2015 Plan expires on February 24, 2025. 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 period: Nine months ended September 30, 2016 2015 Risk free interest rate 1.14 % 1.06 % Dividend yield 3.78 % 3.86 % Volatility 22.62 % 26.74 % Expected life (years) 4.20 5.00 The risk-free interest rate was selected based upon yields of U.S. Treasury issues with a term approximating 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. The fair market value of options granted in the first nine months of 2016 and 2015 was $3.79 and $4.38, respectively. Stock option activity during the nine months ended September 30, 2016 and 2015 is as follows: Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at December 31, 2015 82,875 $ 24.33 Granted 23,500 30.40 Exercised (18,425 ) 20.70 Forfeited (9,725 ) 25.61 Outstanding at September 30, 2016 78,225 $ 26.85 2.74 $ 560 Exercisable at September 30, 2016 23,100 $ 22.38 0.87 $ 268 Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at December 31, 2014 88,375 $ 23.27 Granted 21,000 29.25 Exercised (12,150 ) 17.81 Forfeited (12,650 ) 31.87 Outstanding at September 30, 2015 84,575 $ 24.25 2.50 $ 444 Exercisable at September 30, 2015 30,375 $ 20.87 0.89 $ 262 |
Note 4 - Share Repurchase Plan
Note 4 - Share Repurchase Plan | 9 Months Ended |
Sep. 30, 2016 | |
Temporary Equity Disclosure [Abstract] | |
SHARE REPURCHASE PLAN | 4. SHARE REPURCHASE PLAN The Board of Directors has authorized the repurchase of up to 100,000 shares of its common stock in open market or privately negotiated transactions. The repurchase authorization does not bear a termination date. There were no shares repurchased during the nine months ended September 30, 2016 and 2015. As of September 30, 2016, 57,883 shares were repurchased under this authorization at an average price of $16.97 and a total cost of $982,000. |
Note 5 - Earnings Per Share
Note 5 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 5. EARNINGS PER SHARE The following sets forth the computation of basic and diluted earnings per share: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Numerator for basic and diluted earnings per share - net income $ 2,292 $ 2,220 $ 6,655 $ 6,290 Denominator for basic earnings per share - weighted average shares outstanding 3,391,471 3,343,011 3,381,491 3,332,650 Effect of dilutive securities - employee stock options 12,568 13,778 9,238 12,980 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 3,404,039 3,356,789 3,390,729 3,345,630 Earnings per share - basic $ 0.68 $ 0.66 $ 1.97 $ 1.89 Earnings per share - diluted 0.67 0.66 1.96 1.88 There were no stock options that were anti-dilutive for the three-month period ended September 30, 2016, and 41,350 anti-dilutive options for the nine months ended September 30, 2016. There were 21,000 stock options that were anti-dilutive for both the three and nine-month periods ended September 30, 2015. These stock options were not included in the above calculation. |
Note 6 - Comprehensive Income (
Note 6 - Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Other Comprehensive Income Loss Tax [Abstract] | |
Comprehensive Income (Loss) | 6. COMPREHENSIVE INCOME (LOSS) The following shows the components of accumulated other comprehensive income (loss) at September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Unrealized net holding gains (losses) on available-for-sale securities $ 3,780 $ (568 ) Unrealized losses on available-for-sale securities for which a portion of an other-than-temporary impairment loss has been recognized in earnings (313 ) (259 ) Accumulated other comprehensive income (loss) 3,467 (827 ) Tax effect (1,179 ) 281 Accumulated other comprehensive income (loss), net of tax $ 2,288 $ (546 ) The following tables present amounts reclassified out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2016 and 2015: Three months ended September 30, Amount reclassified from accumulated other comprehensive income Details about accumulated other comprehensive income 2016 2015 Affected line item in statement of income Unrealized net holding gains on available-for-sale securities $ 316 $ 83 Net gain on sale of investment securities Tax effect (108 ) (28 ) Provision for income taxes Total reclass out of accumulated other comprehensive income, net of tax $ 208 $ 55 Net of tax Nine months ended September 30, Amount reclassified from accumulated other comprehensive income Details about accumulated other comprehensive income 2016 2015 Affected line item in statement of income Unrealized net holding gains on available-for-sale securities $ 842 $ 800 Net gain on sale of investment securities Other-than-temporary impairment losses on investment securities (192 ) - Net other-than-temporary impairment losses on investment securities 650 800 Tax effect (221 ) (273 ) Provision for income taxes Total reclass out of accumulated other comprehensive income, net of tax $ 429 $ 527 Net of tax |
Note 7 - Investment Securities
Note 7 - Investment Securities | 9 Months Ended |
Sep. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | 7. INVESTMENT SECURITIES QNB engages 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 non-interest income. There were net realized and unrealized losses of $39,000 recorded for the three months ended September 30, 2016, which compares to net realized and unrealized gains of $36,000 recorded for the three months ended September 30, 2015. There were net realized and unrealized gains of $47,000 and $17,000 recorded for the nine months ended September 30, 2016 and 2015, respectively. Unrealized gains on trading activity related to trading securities still held at September 30, 2016 and December 31, 2015 totaled $13,000 and $31,000, respectively. Interest and dividends are included in interest income. Trading securities, at fair value, at September 30, 2016 and December 31, 2015 were as follows: September 30, December 31, 2016 2015 State and municipal securities $ 4,312 $ 4,189 The amortized cost and estimated fair values of investment securities available-for-sale at September 30, 2016 and December 31, 2015 were as follows: Gross Gross unrealized unrealized Fair holding holding Amortized September 30, 2016 value gains losses cost U.S. Government agency $ 65,812 $ 167 $ (98 ) $ 65,743 State and municipal 73,560 1,701 (37 ) 71,896 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 132,746 2,277 (11 ) 130,480 Collateralized mortgage obligations (CMOs) 79,264 422 (298 ) 79,140 Pooled trust preferred 2,275 246 (950 ) 2,979 Corporate debt 7,112 50 (8 ) 7,070 Equity 8,065 338 (332 ) 8,059 Total investment securities available-for-sale $ 368,834 $ 5,201 $ (1,734 ) $ 365,367 Gross Gross unrealized unrealized Fair holding holding Amortized December 31, 2015 value gains losses cost U.S. Government agency $ 61,779 $ 88 $ (490 ) $ 62,181 State and municipal 78,954 1,554 (31 ) 77,431 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 136,681 944 (920 ) 136,657 Collateralized mortgage obligations (CMOs) 65,610 178 (1,178 ) 66,610 Pooled trust preferred 2,653 259 (897 ) 3,291 Corporate debt 9,004 15 (95 ) 9,084 Equity 7,234 516 (770 ) 7,488 Total investment securities available-for-sale $ 361,915 $ 3,554 $ (4,381 ) $ 362,742 The amortized cost and estimated fair value of securities available-for-sale by contractual maturity at September 30, 2016 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 municipal securities that have been pre-refunded. Amortized September 30, 2016 Fair value cost Due in one year or less $ 6,140 $ 6,085 Due after one year through five years 240,710 237,900 Due after five years through ten years 101,608 100,465 Due after ten years 12,311 12,858 Equity securities 8,065 8,059 Total investment securities available-for-sale $ 368,834 $ 365,367 For the three months ended September 30, 2016 and 2015, proceeds from sales of investment securities available-for-sale were approximately $3,078,000 and $685,000. Proceeds from sales of investment securities available-for-sale were approximately $31,892,000 and $27,480,000 for the nine months ended September 30, 2016 and 2015, respectively. At September 30, 2016 and December 31, 2015, investment securities available-for-sale totaling approximately $215,013,000 and $197,149,000, respectively, were pledged as collateral for repurchase agreements and deposits of public funds. 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. Gains and losses on available-for-sale securities are computed on the specific identification method and included in non-interest income. Gross realized losses on equity and debt securities are net of other-than-temporary impairment charges: Three months ended September 30, 2016 Three months ended September 30, 2015 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 $ 316 $ — $ — $ 316 $ 83 $ — $ — $ 83 Debt securities — — — — — — — — Total $ 316 $ — $ — $ 316 $ 83 $ — $ — $ 83 Nine months ended September 30, 2016 Nine months ended September 30, 2015 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 $ 734 $ — $ (192 ) $ 542 $ 713 $ (23 ) $ — $ 690 Debt securities 181 (73 ) — 108 154 (44 ) — 110 Total $ 915 $ (73 ) $ (192 ) $ 650 $ 867 $ (67 ) $ — $ 800 The tax expense applicable to the net realized gains for the quarters and nine-month periods ended September 30, 2016 and 2015 were $107,000 and $29,000 for the quarter and $221,000 and $273,000 year-to-date, respectively. QNB recognizes OTTI for debt securities classified as available-for-sale in accordance with FASB ASC 320, Investments – Debt and Equity Securities The following table presents a roll forward 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 on debt securities in the first nine months of 2016 or 2015. The 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: Nine months ended September 30, 2016 2015 Balance, beginning of period $ 1,153 $ 1,153 Additions: Initial credit impairments — — Subsequent credit impairments — — Balance, end of period $ 1,153 $ 1,153 The amortized cost and estimated fair values of investment securities held-to-maturity at September 30, 2016 and December 31, 2015 were as follows: Held-To-Maturity September 30, 2016 December 31, 2015 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 securities $ 147 $ — $ — $ 147 $ 147 $ 4 $ — $ 151 The amortized cost and estimated fair value of securities held-to-maturity by contractual maturity at September 30, 2016 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 September 30, 2016 Fair value cost Due in one year or less $ 147 $ 147 Due after one year through five years — — Due after five years through ten years — — Due after ten years — — Total investment securities held-to-maturity $ 147 $ 147 There were no sales of investment securities classified as held-to-maturity during the three and nine months ended September 30, 2016 or 2015. The following table indicates the length of time individual securities have been in a continuous unrealized loss position at September 30, 2016 and December 31, 2015: September 30, 2016 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 15 $ 20,918 $ (98 ) $ — $ — $ 20,918 $ (98 ) State and municipal 11 3,796 (37 ) — — 3,796 (37 ) U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 6 9,222 (11 ) — — 9,222 (11 ) Collateralized mortgage obligations (CMOs) 38 27,179 (100 ) 15,823 (198 ) 43,002 (298 ) Pooled trust preferred 5 — — 1,938 (950 ) 1,938 (950 ) Corporate debt 1 — — 1,003 (8 ) 1,003 (8 ) Equity 18 3,259 (240 ) 1,065 (92 ) 4,324 (332 ) Total 94 $ 64,374 $ (486 ) $ 19,829 $ (1,248 ) $ 84,203 $ (1,734 ) December 31, 2015 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 32 $ 40,949 $ (418 ) $ 4,426 $ (72 ) $ 45,375 $ (490 ) State and municipal 20 6,646 (19 ) 1,555 (12 ) 8,201 (31 ) U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 62 90,796 (871 ) 1,403 (49 ) 92,199 (920 ) Collateralized mortgage obligations (CMOs) 49 28,372 (261 ) 26,354 (917 ) 54,726 (1,178 ) Pooled trust preferred 5 — — 2,193 (897 ) 2,193 (897 ) Corporate debt 6 5,988 (95 ) — — 5,988 (95 ) Equity 19 4,035 (695 ) 193 (75 ) 4,228 (770 ) Total 193 $ 176,786 $ (2,359 ) $ 36,124 $ (2,022 ) $ 212,910 $ (4,381 ) Management evaluates debt securities, which are comprised of U.S. Government agencies, state and municipalities, mortgage-backed securities, CMOs and corporate debt securities, for other-than-temporary impairment 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 September 30, 2016 in U.S. Government securities, state and municipal securities, mortgage-backed securities, CMOs and corporate debt securities 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. The Company has the intent to hold the securities and does not believe it will be required to sell the securities before recovery occurs. The Company’s investment in marketable equity securities primarily consists of investments in large cap stock companies. These equity securities are analyzed for impairment on an ongoing basis. Management believes these equity securities will recover in the foreseeable future. QNB evaluated the near-term prospects of the issuers in relation to the severity and duration of the impairment. Based on that evaluation and the Company’s ability and intent to hold those securities for a reasonable period of time sufficient for a forecasted recovery of fair value, the Company does not consider these equity securities to be other-than-temporarily impaired. QNB holds six pooled trust preferred securities as of September 30, 2016. These securities have a total amortized cost of approximately $2,979,000 and a fair value of $2,275,000. 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 September 30, 2016: Deal Class Book value Fair value Unrealized gains (losses) Realized OTTI credit loss (YTD 2016) Total recognized OTTI credit loss Moody's /Fitch ratings Current number of performing banks Current number of performing insurance companies Actual deferrals and defaults as a % of total collateral Total performing collateral as a % of outstanding bonds PreTSL IV Mezzanine * $ 243 $ 188 $ (55 ) $ — $ (1 ) B1/BB 5 — 18.0 % 141.2 % PreTSL XVII Mezzanine 606 456 (150 ) — (222 ) C/CC 34 5 21.6 99.7 PreTSL XIX Mezzanine 874 483 (391 ) — — Caa1/CC 41 12 7.7 102.0 PreTSL XXV Mezzanine 766 488 (279 ) — (222 ) Ca/C 44 5 27.0 89.3 PreTSL XXVI Mezzanine 399 323 (75 ) — (270 ) Caa3/C 45 7 18.0 97.4 PreTSL XXVI Mezzanine 91 337 246 — (438 ) Caa3/C 45 7 18.0 97.4 $ 2,979 $ 2,275 $ (704 ) $ — $ (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 rule authorizing retention of pooled trust preferred securities backed primarily by bank-issued trust preferred securities which included the PreTSLs held by QNB. Due to the uncertainty invoked between the original release of the Volcker Rule and the final rule, there was a noticeable increase in trading activity. 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 September 30, 2016 was not active and markets for similar securities also are not active. 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 we evaluate our debt securities for other-than-temporary impairment (OTTI), which involves the use of a third-party valuation firm to assist management with the valuation. When evaluating these investments a credit-related portion and a non-credit related portion of impairment 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 three and nine months ended September 30, 2016 and 2015, 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. 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 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 of 1% were forecasted. In addition to the base prepayment assumption, due to the enactment of the Dodd-Frank Act’s revised Tier 1 capital treatment, additional prepayment analysis was performed. 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 U.S. bank holding company with an investment grade credit rating and any foreign banking organization would prepay their issuance as soon as possible. For those institutions rated below investment grade we assumed that any holding company that could refinance for a cost savings of more than 2% when compared to the approximate cost of long-term funding given their rating and marketplace interest rates, will refinance as soon as possible. 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, whether the TARP funding was redeemed or resold through a Treasury Department auction at a premium or discount, 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 2015 were approximately 0.37%. Thus, in addition to the specific bank default assumptions used for the near term, for future defaults on the individual banks in the analysis for 2016 and beyond the rate used is calculated based on historic default averages 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. Default factors used in the cash flow analysis range from 0.25% to 0.51%. • 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 2016 and thereafter. Based upon the analysis performed by management as of September 30, 2016, 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 has 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 write-downs in the future if additional deferrals and defaults occur. |
Note 8 - Loans & Allowance for
Note 8 - Loans & Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Loans & Allowance for Loan Losses | 8. LOANS & ALLOWANCE FOR LOAN LOSSES 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 consists of residential mortgage loans that 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. 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: 1. Lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices. 2. Effect of external factors, such as legal and regulatory requirements. 3. 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. 4. Nature and volume of the portfolio including growth. 5. Experience, ability, and depth of lending management and staff. 6. Volume and severity of past due, classified and nonaccrual loans. 7. Quality of the Company’s loan review system, and the degree of oversight by the Company’s Board of Directors. 8. 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 uncollectibility. 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. Major classes of loans are as follows: September 30, December 31, 2016 2015 Commercial: Commercial and industrial $ 110,892 $ 124,397 Construction 32,133 27,372 Secured by commercial real estate 233,430 235,171 Secured by residential real estate 65,671 63,164 State and political subdivisions 35,033 40,285 Indirect lease financing 8,707 10,371 Retail: 1-4 family residential mortgages 46,544 42,833 Home equity loans and lines 70,408 67,384 Consumer 5,306 4,286 Total loans 608,124 615,263 Net unearned costs 107 7 Loans receivable $ 608,231 $ 615,270 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 September 30, 2016 and December 31, 2015, overdrafts were approximately $172,000 and $203,000, 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 September 30, 2016, 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. 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 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 all loans in the portfolio 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 September 30, 2016 and December 31, 2015: September 30, 2016 Pass Special mention Substandard Doubtful Total Commercial: Commercial and industrial $ 102,130 $ 700 $ 8,062 $ — $ 110,892 Construction 32,122 — 11 — 32,133 Secured by commercial real estate 218,404 3,504 11,522 — 233,430 Secured by residential real estate 63,004 233 2,434 — 65,671 State and political subdivisions 35,033 — — — 35,033 Indirect lease financing 8,571 — 136 — 8,707 $ 459,264 $ 4,437 $ 22,165 $ — $ 485,866 December 31, 2015 Pass Special mention Substandard Doubtful Total Commercial: Commercial and industrial $ 117,246 — $ 7,151 $ — $ 124,397 Construction 27,355 — 17 — 27,372 Secured by commercial real estate 218,958 $ 361 15,852 — 235,171 Secured by residential real estate 60,286 34 2,844 — 63,164 State and political subdivisions 39,027 — 1,258 — 40,285 Indirect lease financing 10,168 — 203 — 10,371 $ 473,040 $ 395 $ 27,325 $ — $ 500,760 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 September 30, 2016 and December 31, 2015: September 30, 2016 Performing Non-performing Total Retail: 1-4 family residential mortgages $ 46,274 $ 270 $ 46,544 Home equity loans and lines 70,312 96 70,408 Consumer 5,211 95 5,306 $ 121,797 $ 461 $ 122,258 December 31, 2015 Performing Non-performing Total Retail: 1-4 family residential mortgages $ 42,546 $ 287 $ 42,833 Home equity loans and lines 67,257 127 67,384 Consumer 4,286 — 4,286 $ 114,089 $ 414 $ 114,503 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 summarized by the past due status as of September 30, 2016 and December 31, 2015: September 30, 2016 30-59 past due 60-89 days past due 90 days or more past due Total past due loans Current Total loans receivable Commercial: Commercial and industrial $ 15 — — $ 15 $ 110,877 $ 110,892 Construction — — — — 32,133 32,133 Secured by commercial real estate 962 $ 1,226 $ 861 3,049 230,381 233,430 Secured by residential real estate 92 — 327 419 65,252 65,671 State and political subdivisions — — — — 35,033 35,033 Indirect lease financing 134 133 282 549 8,158 8,707 Retail: 1-4 family residential mortgages — — — — 46,544 46,544 Home equity loans and lines 55 172 — 227 70,181 70,408 Consumer 26 2 — 28 5,278 5,306 $ 1,284 $ 1,533 $ 1,470 $ 4,287 $ 603,837 $ 608,124 December 31, 2015 30-59 days past due 60-89 days past due 90 days or more past due Total past due loans Current Total loans receivable Commercial: Commercial and industrial $ 95 — — $ 95 $ 124,302 $ 124,397 Construction 63 — — 63 27,309 27,372 Secured by commercial real estate 443 — $ 935 1,378 233,793 235,171 Secured by residential real estate — $ 97 369 466 62,698 63,164 State and political subdivisions — — — — 40,285 40,285 Indirect lease financing 320 53 130 503 9,868 10,371 Retail: 1-4 family residential mortgages 641 234 — 875 41,958 42,833 Home equity loans and lines 272 — 45 317 67,067 67,384 Consumer 12 10 — 22 4,264 4,286 $ 1,846 $ 394 $ 1,479 $ 3,719 $ 611,544 $ 615,263 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 September 30, 2016 and December 31, 2015: September 30, 2016 90 due (still accruing) Non-accrual Commercial: Commercial and industrial — $ 2,908 Construction — — Secured by commercial real estate — 3,319 Secured by residential real estate — 1,417 State and political subdivisions — — Indirect lease financing $ 150 132 Retail: 1-4 family residential mortgages — 270 Home equity loans and lines — 96 Consumer — 95 $ 150 $ 8,237 December 31, 2015 90 due (still accruing) Non-accrual Commercial: Commercial and industrial — $ 3,433 Construction — — Secured by commercial real estate — 3,627 Secured by residential real estate — 1,803 State and political subdivisions — — Indirect lease financing $ 11 143 Retail: 1-4 family residential mortgages — 287 Home equity loans and lines — 127 Consumer — — $ 11 $ 9,420 Activity in the allowance for loan losses for the three months ended September 30, 2016 and 2015 are as follows: Three months ended September 30, 2016 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,350 $ (55 ) — $ 9 $ 1,304 Construction 429 (79 ) — — 350 Secured by commercial real estate 2,231 233 — 2 2,466 Secured by residential real estate 1,550 (57 ) — 50 1,543 State and political subdivisions 204 (64 ) — — 140 Indirect lease financing 226 (6 ) — — 220 Retail: 1-4 family residential mortgages 298 (20 ) — — 278 Home equity loans and lines 343 (7 ) — 4 340 Consumer 73 33 $ (29 ) 7 84 Unallocated 846 22 N/A N/A 868 $ 7,550 $ — $ (29 ) $ 72 $ 7,593 Three months ended September 30, 2015 Balance, beginning of period Provision (credit) for loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,603 $ (79 ) — $ 11 $ 1,535 Construction 149 118 — — 267 Secured by commercial real estate 2,655 (494 ) — 3 2,164 Secured by residential real estate 1,635 (53 ) $ (4 ) 2 1,580 State and political subdivisions 232 (4 ) — — 228 Indirect lease financing 121 (4 ) — 5 122 Retail: 1-4 family residential mortgages 313 (7 ) — — 306 Home equity loans and lines 474 (28 ) — 4 450 Consumer 71 18 (17 ) 10 82 Unallocated 402 533 N/A N/A 935 $ 7,655 $ — $ (21 ) $ 35 $ 7,669 Activity in the allowance for loan losses for the nine months ended September 30, 2016 and 2015 are as follows: Nine months ended September 30, 2016 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,521 $ (105 ) $ (140 ) $ 28 $ 1,304 Construction 286 64 — — 350 Secured by commercial real estate 2,411 49 — 6 2,466 Secured by residential real estate 1,812 (359 ) (20 ) 110 1,543 State and political subdivisions 222 (82 ) — — 140 Indirect lease financing 164 99 (52 ) 9 220 Retail: 1-4 family residential mortgages 350 (72 ) — — 278 Home equity loans and lines 428 (102 ) — 14 340 Consumer 76 49 (62 ) 21 84 Unallocated 284 584 N/A N/A 868 $ 7,554 $ 125 $ (274 ) $ 188 $ 7,593 Nine months ended September 30, 2015 Balance, beginning of period Provision (credit) for loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,892 $ (357 ) $ (30 ) $ 30 $ 1,535 Construction 297 (30 ) — — 267 Secured by commercial real estate 2,700 (458 ) (85 ) 7 2,164 Secured by residential real estate 1,630 251 (321 ) 20 1,580 State and political subdivisions 221 7 — — 228 Indirect lease financing 93 22 (8 ) 15 122 Retail: 1-4 family residential mortgages 312 (6 ) — — 306 Home equity loans and lines 453 (19 ) — 16 450 Consumer 85 33 (58 ) 22 82 Unallocated 318 617 N/A N/A 935 $ 8,001 $ 60 $ (502 ) $ 110 $ 7,669 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 $1,149,000 and $1,288,000 as of September 30, 2016 and December 31, 2015, respectively. Non-performing TDRs totaled $2,279,000 and $990,000 as of September 30, 2016 and December 31, 2015, 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. September 30, 2016 December 31, 2015 Unpaid principal balance Related allowance Unpaid principal balance Related allowance TDRs with no specific allowance recorded $ 2,860 — $ 1,787 — TDRs with an allowance recorded 568 $ 388 491 $ 491 $ 3,428 $ 388 $ 2,278 $ 491 There were eleven newly identified TDRs during the nine months ended September 30, 2016. The TDR concessions involved extension of a maturity date, renewal of a line of credit and concessions to lower monthly payments. As of September 30, 2016 and December 31, 2015, QNB had commitments of $2,020,000 and $1,919,000, respectively, to lend additional funds to customers with loans whose terms have been modified in troubled debt restructurings. There were charge-offs of $0 and $5,000 during the nine months ended September 30, 2016 and 2015, respectively, resulting from loans previously modified as TDRs. The following tables present loans, by loan class, modified as TDRs during the three and nine months ended September 30, 2016 and 2015. The pre-modification and post-modification outstanding recorded investments disclosed in the tables below, represent carrying amounts immediately prior to the modification and as of the period end indicated. Three months ended September 30, 2016 2015 Number contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Retail: 1-4 family residential mortgages — — — 1 $ 142 $ 142 Consumer 1 $ 96 $ 95 — — — 1 $ 96 $ 95 1 $ 142 $ 142 Nine months ended September 30, 2016 2015 Number contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial: Commercial and industrial 6 $ 1,074 $ 1,033 — — — Secured by residential real estate 4 524 503 — — — Retail: 1-4 family residential mortgages — — — 1 $ 142 $ 142 Consumer 1 96 95 — — — 11 $ 1,694 $ 1,631 1 $ 142 $ 142 There were no loans modified as TDRs within 12 months prior to September 30, 2016 and 2015 for which there was a payment default (60 days or more past due) during the three and nine months ended September 30, 2016 and 2015. There were no consumer mortgage loans secured by residential real estate for which foreclosure proceedings are in process at September 30, 2016. The following tables present the balance in the allowance for loan losses at September 30, 2016 and December 31, 2015 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 September 30, 2016 Balance Balance to loans individually evaluated for impairment Balance related to loans collectively evaluated for impairment Balance Balance individually evaluated for impairment Balance collectively evaluated for impairment Commercial: Commercial and industrial $ 1,304 $ 462 $ 842 $ 110,892 $ 3,820 $ 107,072 Construction 350 — 350 32,133 280 31,853 Secured by commercial real estate 2,466 — 2,466 233,430 6,050 227,380 Secured by residential real estate 1,543 189 1,354 65,671 1,716 63,955 State and political subdivisions 140 — 140 35,033 — 35,033 Indirect lease financing 220 55 165 8,707 132 8,575 Retail: 1-4 family residential mortgages 278 11 267 46,544 561 45,983 Home equity loans and lines 340 — 340 70,408 119 70,289 Consumer 84 — 84 5,306 95 5,211 Unallocated 868 N/A N/A N/A N/A N/A $ 7,593 $ 717 $ 6,008 $ 608,124 $ 12,773 $ 595,351 Allowance for Loan Losses Loans Receivable December 31, 2015 Balance Balance related to loans individually evaluated for impairment Balance related to loans collectively evaluated for impairment Balance Balance individually evaluated for impairment Balance collectively evaluated for impairment Commercial: Commercial and industrial $ 1,521 $ 712 $ 809 $ 124,397 $ 4,586 $ 119,811 Construction 286 — 286 27,372 364 27,008 Secured by commercial real estate 2,411 14 2,397 235,171 6,998 228,173 Secured by residential real estate 1,812 203 1,609 63,164 2,113 61,051 State and political subdivisions 222 — 222 40,285 — 40,285 Indirect lease financing 164 20 144 10,371 146 10,225 Retail: 1-4 family residential mortgages 350 25 325 42,833 583 42,250 Home equity loans and lines 428 — 428 67,384 151 67,233 Consumer 76 — 76 4,286 — 4,286 Unallocated 284 N/A N/A N/A N/A N/A $ 7,554 $ 974 $ 6,296 $ 615,263 $ 14,941 $ 600,322 The following tables summarize additional information in regards to impaired loans by loan portfolio class as of September 30, 2016 and December 31, 2015: September 30, 2016 December 31, 2015 Recorded investment (after charge-offs) Unpaid principal balance Related allowance Recorded investment (after charge-offs) Unpaid principal balance Related allowance With no specific allowance recorded: Commercial: Commercial and industrial $ 3,167 $ 3,531 $ — $ 3,629 $ 3,923 $ — Construction 280 301 — 364 364 — Secured by commercial real estate 6,050 6,004 — 6,932 7,416 — Secured by residential real estate 918 1,286 — 942 1,653 — State and political subdivis |
Note 9 - Fair Value Measurement
Note 9 - Fair Value Measurements and Disclosures | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | 9. FAIR VALUE MEASUREMENTS AND DISCLOSURES Financial Accounting Standards Board (FASB) ASC 820, Fair Value Measurements and Disclosures 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. The following table sets forth QNB’s financial assets measured at fair value on a recurring and nonrecurring basis and the fair value measurements by level within the fair value hierarchy as of September 30, 2016: September 30, 2016 Quoted 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 securities $ — $ 4,312 $ — $ 4,312 Securities available-for-sale U.S. Government agency securities — $ 65,812 — $ 65,812 State and municipal securities — 73,560 — 73,560 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed securities — 132,746 — 132,746 Collateralized mortgage obligations (CMOs) — 79,264 — 79,264 Pooled trust preferred securities — — $ 2,275 2,275 Corporate debt securities — 7,112 — 7,112 Equity securities $ 8,065 — — 8,065 Total securities available-for-sale $ 8,065 $ 358,494 $ 2,275 $ 368,834 Total recurring fair value measurements $ 8,065 $ 362,806 $ 2,275 $ 373,146 Nonrecurring fair value measurements Impaired loans $ — $ — $ 1,046 $ 1,046 Mortgage servicing rights — — 142 142 Total nonrecurring fair value measurements $ — $ — $ 1,188 $ 1,188 There were no transfers in and out of Level 1 and Level 2 fair value measurements during the nine months ended September 30, 2016. There were also no transfers in or out of level 3 for the same period. 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 nine-month period ended September 30, 2016. The following table sets forth QNB’s financial assets measured at fair value on a recurring and nonrecurring basis, the fair value measurements by level within the fair value hierarchy as of December 31, 2015: December 31, 2015 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 securities $ — $ 4,189 $ — $ 4,189 Securities available-for-sale U.S. Government agency securities — $ 61,779 — $ 61,779 State and municipal securities — 78,954 — 78,954 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed securities — 136,681 — 136,681 Collateralized mortgage obligations (CMOs) — 65,610 — 65,610 Pooled trust preferred securities — — $ 2,653 2,653 Corporate debt securities — 9,004 — 9,004 Equity securities $ 7,234 — — 7,234 Total securities available-for-sale $ 7,234 $ 352,028 $ 2,653 $ 361,915 Total recurring fair value measurements $ 7,234 $ 356,217 $ 2,653 $ 366,104 Nonrecurring fair value measurements Impaired loans $ — $ — $ 1,698 $ 1,698 Mortgage servicing rights — — 133 133 Total nonrecurring fair value measurements $ — $ — $ 1,831 $ 1,831 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 September 30, 2016 Fair Valuation techniques Unobservable input Value of values Impaired loans $ 778 Appraisal (1) Appraisal adjustments (2) -20% to -90% Liquidation expenses (3) -10% Impaired loans 140 Used commercial vehicle and equipment guides Guide value discounts (4) 0% to -30% Impaired loans 128 Financial statement values for UCC collateral Financial statement value discounts (5) -20% to -25% Mortgage servicing rights 142 Discounted cash flow Remaining term 2 - 27 yrs Discount rate 12% to 14% Quantitative information about Level 3 fair value measurements December 31, 2015 Fair value Valuation techniques Unobservable input Value or range of values Impaired loans $ 1,331 Appraisal of collateral (1) Appraisal adjustments (2) -15% to -80% Liquidation expenses (3) -10% Impaired loans 199 Used commercial vehicle and equipment guides Guide value discounts (4) 0% to -30% Impaired loans 168 Financial statement values for UCC collateral Financial statement value discounts (5) -25% to -70% Mortgage servicing rights 133 Discounted cash flow Remaining term 3 - 28 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) If lendable value (lower than wholesale) is utilized then no additional discounts are taken. If lendable value is not provided then additional discounts are applied. (5) Values obtained from financial statements for UCC collateral (fixed assets and inventory) are discounted to estimated realizable liquidation value. 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 nine months ended September 30, 2016: Fair value measurements using significant unobservable inputs (Level 3) Balance, January 1, 2016 $ 2,653 Payments received (312 ) Total gains or losses (realized/unrealized) Included in earnings — Included in other comprehensive income (66 ) Transfers in and/or out of Level 3 — Balance, September 30, 2016 $ 2,275 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 7, despite the fact that there were some trades over the past few years, the market for these securities at September 30, 2016 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 September 30, 2016; • 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. 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 5.03% to 7.79%. 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 7, 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 September 30, 2016 and December 31, 2015: Cash and cash equivalents, accrued interest receivable and accrued interest payable (carried at cost) Investment securities - trading (carried at fair value), available for sale (carried at fair value) and held-to-maturity (carried at amortized cost) Restricted investment in bank stocks (carried at cost) Loans Held-for-Sale (carried at lower of cost or fair value) Loans Receivable (carried at cost) Impaired Loans (generally carried at fair value) Mortgage Servicing Rights (carried at lower of cost or fair value) Foreclosed assets (other real estate owned and repossessed assets) Deposit liabilities (carried at cost) Short-term borrowings (carried at cost) Off-balance-sheet instruments (disclosed at cost) 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 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 period 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 September 30, 2016 Carrying amount Fai r Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents $ 69,428 $ 69,428 $ 69,428 — — Investment securities: Trading 4,312 4,312 — $ 4,312 — Available-for-sale 368,834 368,834 8,065 358,494 $ 2,275 Held-to-maturity 147 147 — 147 — Restricted investment in bank stocks 522 522 — 522 — Loans held-for-sale 456 466 — 466 — Net loans 600,638 610,066 — — 610,066 Mortgage servicing rights 498 555 — — 555 Accrued interest receivable 2,573 2,573 — 2,573 — Financial liabilities Deposits with no stated maturities $ 698,336 $ 698,336 $ 698,336 — $ — Deposits with stated maturities 228,376 230,993 — $ 230,993 — Short-term borrowings 41,179 41,179 41,179 — — Accrued interest payable 310 310 — 310 — Off-balance sheet instruments Commitments to extend credit $ — $ — $ — $ — $ — Standby letters of credit — — — — — Fair value measurements December 31, 2015 Carrying amount Fai r Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents $ 16,991 $ 16,991 $ 16,991 — — Investment securities: Trading 4,189 4,189 — $ 4,189 — Available-for-sale 361,915 361,915 7,234 352,028 $ 2,653 Held-to-maturity 147 151 — 151 — Restricted investment in bank stocks 508 508 — 508 — Loans held-for-sale 987 1,004 — 1,004 — Net loans 607,716 610,315 — — 610,315 Mortgage servicing rights 504 642 — — 642 Accrued interest receivable 2,562 2,562 — 2,562 — Financial liabilities Deposits with no stated maturities $ 662,410 $ 662,410 $ 662,410 — $ — Deposits with stated maturities 227,376 227,862 — $ 227,862 — Short-term borrowings 37,163 37,163 37,163 — — Accrued interest payable 330 330 — 330 — Off-balance sheet instruments Commitments to extend credit $ — $ — $ — $ — $ — Standby letters of credit — — — — — |
Note 10 - Off-balance-sheet Fin
Note 10 - Off-balance-sheet Financial Instruments and Guarantees | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Off-balance-sheet Financial Instruments and Guarantees | 10. OFF-BALANCE-SHEET FINANCIAL INSTRUMENTS AND GUARANTEES 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: September 30, December 31, 2016 2015 Commitments to extend credit and unused lines of credit $ 308,483 $ 232,492 Standby letters of credit 12,980 9,493 Total financial instrument commitments $ 321,463 $ 241,985 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 three 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. 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 September 30, 2016 and December 31, 2015 for guarantees under standby letters of credit issued is not material. 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. |
Note 11 - Regulatory Restrictio
Note 11 - Regulatory Restrictions | 9 Months Ended |
Sep. 30, 2016 | |
Banking And Thrift [Abstract] | |
Regulatory Restrictions | 11. 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 QNB Corp., 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 September 30, 2016, 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 as set forth in the following table below. The Company and the Bank’s actual capital amounts and ratios are presented as follows: Capital levels Actual Minimum required Well capitalized As of September 30, 2016 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets): Consolidated $ 103,357 13.08 % $ 63,207 8.00 % $ 79,009 10.00 % Bank 95,163 12.43 61,266 8.00 76,583 10.00 Tier I capital (to risk-weighted assets): Consolidated 95,704 12.11 47,405 6.00 47,405 6.00 Bank 87,511 11.43 45,950 6.00 61,266 8.00 Common equity tier 1 capital (to risk-weighted assets): Consolidated 95,704 12.11 35,554 4.50 N/A N/A Bank 87,511 11.43 34,462 4.50 49,779 6.50 Tier I capital (to average assets): Consolidated 95,704 9.08 42,160 4.00 N/A N/A Bank 87,511 8.37 41,835 4.00 52,293 5.00 Capital levels Actual Adequately capitalized Well capitalized As of December 31, 2015 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets): Consolidated $ 98,432 12.58 % $ 62,613 8.00 % $ 78,266 10.00 % Bank 91,091 11.97 60,874 8.00 76,093 10.00 Tier I capital (to risk-weighted assets): Consolidated 90,819 11.60 46,960 6.00 46,960 6.00 Bank 83,478 10.97 45,656 6.00 60,874 8.00 Common equity tier 1 capital (to risk-weighted assets): Consolidated 90,819 11.60 35,220 4.50 N/A N/A Bank 83,478 10.97 34,242 4.50 49,460 6.50 Tier I capital (to average assets): Consolidated 90,819 8.87 40,934 4.00 N/A N/A Bank 83,478 8.22 40,632 4.00 50,790 5.00 |
Note 3 - Stock-based Compensa20
Note 3 - Stock-based Compensation and Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Assumptions Used in Option Pricing Model | Nine months ended September 30, 2016 2015 Risk free interest rate 1.14 % 1.06 % Dividend yield 3.78 % 3.86 % Volatility 22.62 % 26.74 % Expected life (years) 4.20 5.00 |
Stock Option Activity | Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at December 31, 2015 82,875 $ 24.33 Granted 23,500 30.40 Exercised (18,425 ) 20.70 Forfeited (9,725 ) 25.61 Outstanding at September 30, 2016 78,225 $ 26.85 2.74 $ 560 Exercisable at September 30, 2016 23,100 $ 22.38 0.87 $ 268 Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Outstanding at December 31, 2014 88,375 $ 23.27 Granted 21,000 29.25 Exercised (12,150 ) 17.81 Forfeited (12,650 ) 31.87 Outstanding at September 30, 2015 84,575 $ 24.25 2.50 $ 444 Exercisable at September 30, 2015 30,375 $ 20.87 0.89 $ 262 |
Note 5 - Earnings Per Share (Ta
Note 5 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following sets forth the computation of basic and diluted earnings per share: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Numerator for basic and diluted earnings per share - net income $ 2,292 $ 2,220 $ 6,655 $ 6,290 Denominator for basic earnings per share - weighted average shares outstanding 3,391,471 3,343,011 3,381,491 3,332,650 Effect of dilutive securities - employee stock options 12,568 13,778 9,238 12,980 Denominator for diluted earnings per share - adjusted weighted average shares outstanding 3,404,039 3,356,789 3,390,729 3,345,630 Earnings per share - basic $ 0.68 $ 0.66 $ 1.97 $ 1.89 Earnings per share - diluted 0.67 0.66 1.96 1.88 |
Note 6 - Comprehensive Income22
Note 6 - Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Comprehensive Income Loss Tax [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following shows the components of accumulated other comprehensive income (loss) at September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Unrealized net holding gains (losses) on available-for-sale securities $ 3,780 $ (568 ) Unrealized losses on available-for-sale securities for which a portion of an other-than-temporary impairment loss has been recognized in earnings (313 ) (259 ) Accumulated other comprehensive income (loss) 3,467 (827 ) Tax effect (1,179 ) 281 Accumulated other comprehensive income (loss), net of tax $ 2,288 $ (546 ) |
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) | The following tables present amounts reclassified out of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2016 and 2015: Three months ended September 30, Amount reclassified from accumulated other comprehensive income Details about accumulated other comprehensive income 2016 2015 Affected line item in statement of income Unrealized net holding gains on available-for-sale securities $ 316 $ 83 Net gain on sale of investment securities Tax effect (108 ) (28 ) Provision for income taxes Total reclass out of accumulated other comprehensive income, net of tax $ 208 $ 55 Net of tax Nine months ended September 30, Amount reclassified from accumulated other comprehensive income Details about accumulated other comprehensive income 2016 2015 Affected line item in statement of income Unrealized net holding gains on available-for-sale securities $ 842 $ 800 Net gain on sale of investment securities Other-than-temporary impairment losses on investment securities (192 ) - Net other-than-temporary impairment losses on investment securities 650 800 Tax effect (221 ) (273 ) Provision for income taxes Total reclass out of accumulated other comprehensive income, net of tax $ 429 $ 527 Net of tax |
Note 7 - Investment Securities
Note 7 - Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Trading Securities | September 30, December 31, 2016 2015 State and municipal securities $ 4,312 $ 4,189 |
Investment Securities Available-for-sale | Gross Gross unrealized unrealized Fair holding holding Amortized September 30, 2016 value gains losses cost U.S. Government agency $ 65,812 $ 167 $ (98 ) $ 65,743 State and municipal 73,560 1,701 (37 ) 71,896 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 132,746 2,277 (11 ) 130,480 Collateralized mortgage obligations (CMOs) 79,264 422 (298 ) 79,140 Pooled trust preferred 2,275 246 (950 ) 2,979 Corporate debt 7,112 50 (8 ) 7,070 Equity 8,065 338 (332 ) 8,059 Total investment securities available-for-sale $ 368,834 $ 5,201 $ (1,734 ) $ 365,367 Gross Gross unrealized unrealized Fair holding holding Amortized December 31, 2015 value gains losses cost U.S. Government agency $ 61,779 $ 88 $ (490 ) $ 62,181 State and municipal 78,954 1,554 (31 ) 77,431 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 136,681 944 (920 ) 136,657 Collateralized mortgage obligations (CMOs) 65,610 178 (1,178 ) 66,610 Pooled trust preferred 2,653 259 (897 ) 3,291 Corporate debt 9,004 15 (95 ) 9,084 Equity 7,234 516 (770 ) 7,488 Total investment securities available-for-sale $ 361,915 $ 3,554 $ (4,381 ) $ 362,742 |
Investment Securities by Contractual Maturity | Amortized September 30, 2016 Fair value cost Due in one year or less $ 6,140 $ 6,085 Due after one year through five years 240,710 237,900 Due after five years through ten years 101,608 100,465 Due after ten years 12,311 12,858 Equity securities 8,065 8,059 Total investment securities available-for-sale $ 368,834 $ 365,367 Amortized September 30, 2016 Fair value cost Due in one year or less $ 147 $ 147 Due after one year through five years — — Due after five years through ten years — — Due after ten years — — Total investment securities held-to-maturity $ 147 $ 147 |
Gross Realized Losses on Equity and Debt Securities | Three months ended September 30, 2016 Three months ended September 30, 2015 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 $ 316 $ — $ — $ 316 $ 83 $ — $ — $ 83 Debt securities — — — — — — — — Total $ 316 $ — $ — $ 316 $ 83 $ — $ — $ 83 Nine months ended September 30, 2016 Nine months ended September 30, 2015 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 $ 734 $ — $ (192 ) $ 542 $ 713 $ (23 ) $ — $ 690 Debt securities 181 (73 ) — 108 154 (44 ) — 110 Total $ 915 $ (73 ) $ (192 ) $ 650 $ 867 $ (67 ) $ — $ 800 |
Credit-related Other-than-temporary Impairment | Nine months ended September 30, 2016 2015 Balance, beginning of period $ 1,153 $ 1,153 Additions: Initial credit impairments — — Subsequent credit impairments — — Balance, end of period $ 1,153 $ 1,153 |
Investment Securities Held-to-maturity | Held-To-Maturity September 30, 2016 December 31, 2015 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 securities $ 147 $ — $ — $ 147 $ 147 $ 4 $ — $ 151 |
Securities in a Continuous Unrealized Loss Position | September 30, 2016 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 15 $ 20,918 $ (98 ) $ — $ — $ 20,918 $ (98 ) State and municipal 11 3,796 (37 ) — — 3,796 (37 ) U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 6 9,222 (11 ) — — 9,222 (11 ) Collateralized mortgage obligations (CMOs) 38 27,179 (100 ) 15,823 (198 ) 43,002 (298 ) Pooled trust preferred 5 — — 1,938 (950 ) 1,938 (950 ) Corporate debt 1 — — 1,003 (8 ) 1,003 (8 ) Equity 18 3,259 (240 ) 1,065 (92 ) 4,324 (332 ) Total 94 $ 64,374 $ (486 ) $ 19,829 $ (1,248 ) $ 84,203 $ (1,734 ) December 31, 2015 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 32 $ 40,949 $ (418 ) $ 4,426 $ (72 ) $ 45,375 $ (490 ) State and municipal 20 6,646 (19 ) 1,555 (12 ) 8,201 (31 ) U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed 62 90,796 (871 ) 1,403 (49 ) 92,199 (920 ) Collateralized mortgage obligations (CMOs) 49 28,372 (261 ) 26,354 (917 ) 54,726 (1,178 ) Pooled trust preferred 5 — — 2,193 (897 ) 2,193 (897 ) Corporate debt 6 5,988 (95 ) — — 5,988 (95 ) Equity 19 4,035 (695 ) 193 (75 ) 4,228 (770 ) Total 193 $ 176,786 $ (2,359 ) $ 36,124 $ (2,022 ) $ 212,910 $ (4,381 ) |
Pooled Trust Preferred Securities | Deal Class Book value Fair value Unrealized gains (losses) Realized OTTI credit loss (YTD 2016) Total recognized OTTI credit loss Moody's /Fitch ratings Current number of performing banks Current number of performing insurance companies Actual deferrals and defaults as a % of total collateral Total performing collateral as a % of outstanding bonds PreTSL IV Mezzanine * $ 243 $ 188 $ (55 ) $ — $ (1 ) B1/BB 5 — 18.0 % 141.2 % PreTSL XVII Mezzanine 606 456 (150 ) — (222 ) C/CC 34 5 21.6 99.7 PreTSL XIX Mezzanine 874 483 (391 ) — — Caa1/CC 41 12 7.7 102.0 PreTSL XXV Mezzanine 766 488 (279 ) — (222 ) Ca/C 44 5 27.0 89.3 PreTSL XXVI Mezzanine 399 323 (75 ) — (270 ) Caa3/C 45 7 18.0 97.4 PreTSL XXVI Mezzanine 91 337 246 — (438 ) Caa3/C 45 7 18.0 97.4 $ 2,979 $ 2,275 $ (704 ) $ — $ (1,153 ) |
Note 8 - Loans & Allowance fo24
Note 8 - Loans & Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Troubled Debt Restructuring [Member] | |
Allowance for Loan Losses | September 30, 2016 December 31, 2015 Unpaid principal balance Related allowance Unpaid principal balance Related allowance TDRs with no specific allowance recorded $ 2,860 — $ 1,787 — TDRs with an allowance recorded 568 $ 388 491 $ 491 $ 3,428 $ 388 $ 2,278 $ 491 |
Total Retail Loans [Member] | |
Major Classes of Loans | September 30, December 31, 2016 2015 Commercial: Commercial and industrial $ 110,892 $ 124,397 Construction 32,133 27,372 Secured by commercial real estate 233,430 235,171 Secured by residential real estate 65,671 63,164 State and political subdivisions 35,033 40,285 Indirect lease financing 8,707 10,371 Retail: 1-4 family residential mortgages 46,544 42,833 Home equity loans and lines 70,408 67,384 Consumer 5,306 4,286 Total loans 608,124 615,263 Net unearned costs 107 7 Loans receivable $ 608,231 $ 615,270 |
Internal Risk Ratings and Payment Activity | September 30, 2016 Pass Special mention Substandard Doubtful Total Commercial: Commercial and industrial $ 102,130 $ 700 $ 8,062 $ — $ 110,892 Construction 32,122 — 11 — 32,133 Secured by commercial real estate 218,404 3,504 11,522 — 233,430 Secured by residential real estate 63,004 233 2,434 — 65,671 State and political subdivisions 35,033 — — — 35,033 Indirect lease financing 8,571 — 136 — 8,707 $ 459,264 $ 4,437 $ 22,165 $ — $ 485,866 December 31, 2015 Pass Special mention Substandard Doubtful Total Commercial: Commercial and industrial $ 117,246 — $ 7,151 $ — $ 124,397 Construction 27,355 — 17 — 27,372 Secured by commercial real estate 218,958 $ 361 15,852 — 235,171 Secured by residential real estate 60,286 34 2,844 — 63,164 State and political subdivisions 39,027 — 1,258 — 40,285 Indirect lease financing 10,168 — 203 — 10,371 $ 473,040 $ 395 $ 27,325 $ — $ 500,760 September 30, 2016 Performing Non-performing Total Retail: 1-4 family residential mortgages $ 46,274 $ 270 $ 46,544 Home equity loans and lines 70,312 96 70,408 Consumer 5,211 95 5,306 $ 121,797 $ 461 $ 122,258 December 31, 2015 Performing Non-performing Total Retail: 1-4 family residential mortgages $ 42,546 $ 287 $ 42,833 Home equity loans and lines 67,257 127 67,384 Consumer 4,286 — 4,286 $ 114,089 $ 414 $ 114,503 |
Past Due Loans | September 30, 2016 30-59 past due 60-89 days past due 90 days or more past due Total past due loans Current Total loans receivable Commercial: Commercial and industrial $ 15 — — $ 15 $ 110,877 $ 110,892 Construction — — — — 32,133 32,133 Secured by commercial real estate 962 $ 1,226 $ 861 3,049 230,381 233,430 Secured by residential real estate 92 — 327 419 65,252 65,671 State and political subdivisions — — — — 35,033 35,033 Indirect lease financing 134 133 282 549 8,158 8,707 Retail: 1-4 family residential mortgages — — — — 46,544 46,544 Home equity loans and lines 55 172 — 227 70,181 70,408 Consumer 26 2 — 28 5,278 5,306 $ 1,284 $ 1,533 $ 1,470 $ 4,287 $ 603,837 $ 608,124 December 31, 2015 30-59 days past due 60-89 days past due 90 days or more past due Total past due loans Current Total loans receivable Commercial: Commercial and industrial $ 95 — — $ 95 $ 124,302 $ 124,397 Construction 63 — — 63 27,309 27,372 Secured by commercial real estate 443 — $ 935 1,378 233,793 235,171 Secured by residential real estate — $ 97 369 466 62,698 63,164 State and political subdivisions — — — — 40,285 40,285 Indirect lease financing 320 53 130 503 9,868 10,371 Retail: 1-4 family residential mortgages 641 234 — 875 41,958 42,833 Home equity loans and lines 272 — 45 317 67,067 67,384 Consumer 12 10 — 22 4,264 4,286 $ 1,846 $ 394 $ 1,479 $ 3,719 $ 611,544 $ 615,263 |
Non-accrual Loans | September 30, 2016 90 due (still accruing) Non-accrual Commercial: Commercial and industrial — $ 2,908 Construction — — Secured by commercial real estate — 3,319 Secured by residential real estate — 1,417 State and political subdivisions — — Indirect lease financing $ 150 132 Retail: 1-4 family residential mortgages — 270 Home equity loans and lines — 96 Consumer — 95 $ 150 $ 8,237 December 31, 2015 90 due (still accruing) Non-accrual Commercial: Commercial and industrial — $ 3,433 Construction — — Secured by commercial real estate — 3,627 Secured by residential real estate — 1,803 State and political subdivisions — — Indirect lease financing $ 11 143 Retail: 1-4 family residential mortgages — 287 Home equity loans and lines — 127 Consumer — — $ 11 $ 9,420 |
Allowance for Loan Losses | Three months ended September 30, 2016 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,350 $ (55 ) — $ 9 $ 1,304 Construction 429 (79 ) — — 350 Secured by commercial real estate 2,231 233 — 2 2,466 Secured by residential real estate 1,550 (57 ) — 50 1,543 State and political subdivisions 204 (64 ) — — 140 Indirect lease financing 226 (6 ) — — 220 Retail: 1-4 family residential mortgages 298 (20 ) — — 278 Home equity loans and lines 343 (7 ) — 4 340 Consumer 73 33 $ (29 ) 7 84 Unallocated 846 22 N/A N/A 868 $ 7,550 $ — $ (29 ) $ 72 $ 7,593 Three months ended September 30, 2015 Balance, beginning of period Provision (credit) for loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,603 $ (79 ) — $ 11 $ 1,535 Construction 149 118 — — 267 Secured by commercial real estate 2,655 (494 ) — 3 2,164 Secured by residential real estate 1,635 (53 ) $ (4 ) 2 1,580 State and political subdivisions 232 (4 ) — — 228 Indirect lease financing 121 (4 ) — 5 122 Retail: 1-4 family residential mortgages 313 (7 ) — — 306 Home equity loans and lines 474 (28 ) — 4 450 Consumer 71 18 (17 ) 10 82 Unallocated 402 533 N/A N/A 935 $ 7,655 $ — $ (21 ) $ 35 $ 7,669 Nine months ended September 30, 2016 Balance, beginning of period Provision for (credit to) loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,521 $ (105 ) $ (140 ) $ 28 $ 1,304 Construction 286 64 — — 350 Secured by commercial real estate 2,411 49 — 6 2,466 Secured by residential real estate 1,812 (359 ) (20 ) 110 1,543 State and political subdivisions 222 (82 ) — — 140 Indirect lease financing 164 99 (52 ) 9 220 Retail: 1-4 family residential mortgages 350 (72 ) — — 278 Home equity loans and lines 428 (102 ) — 14 340 Consumer 76 49 (62 ) 21 84 Unallocated 284 584 N/A N/A 868 $ 7,554 $ 125 $ (274 ) $ 188 $ 7,593 Nine months ended September 30, 2015 Balance, beginning of period Provision (credit) for loan losses Charge-offs Recoveries Balance, end of period Commercial: Commercial and industrial $ 1,892 $ (357 ) $ (30 ) $ 30 $ 1,535 Construction 297 (30 ) — — 267 Secured by commercial real estate 2,700 (458 ) (85 ) 7 2,164 Secured by residential real estate 1,630 251 (321 ) 20 1,580 State and political subdivisions 221 7 — — 228 Indirect lease financing 93 22 (8 ) 15 122 Retail: 1-4 family residential mortgages 312 (6 ) — — 306 Home equity loans and lines 453 (19 ) — 16 450 Consumer 85 33 (58 ) 22 82 Unallocated 318 617 N/A N/A 935 $ 8,001 $ 60 $ (502 ) $ 110 $ 7,669 |
Loans by Loan Class Modified as TDRs | Three months ended September 30, 2016 2015 Number contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Retail: 1-4 family residential mortgages — — — 1 $ 142 $ 142 Consumer 1 $ 96 $ 95 — — — 1 $ 96 $ 95 1 $ 142 $ 142 Nine months ended September 30, 2016 2015 Number contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Number of contracts Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Commercial: Commercial and industrial 6 $ 1,074 $ 1,033 — — — Secured by residential real estate 4 524 503 — — — Retail: 1-4 family residential mortgages — — — 1 $ 142 $ 142 Consumer 1 96 95 — — — 11 $ 1,694 $ 1,631 1 $ 142 $ 142 |
Loans Disaggregated by Impairment Method | Allowance for Loan Losses Loans Receivable September 30, 2016 Balance Balance to loans individually evaluated for impairment Balance related to loans collectively evaluated for impairment Balance Balance individually evaluated for impairment Balance collectively evaluated for impairment Commercial: Commercial and industrial $ 1,304 $ 462 $ 842 $ 110,892 $ 3,820 $ 107,072 Construction 350 — 350 32,133 280 31,853 Secured by commercial real estate 2,466 — 2,466 233,430 6,050 227,380 Secured by residential real estate 1,543 189 1,354 65,671 1,716 63,955 State and political subdivisions 140 — 140 35,033 — 35,033 Indirect lease financing 220 55 165 8,707 132 8,575 Retail: 1-4 family residential mortgages 278 11 267 46,544 561 45,983 Home equity loans and lines 340 — 340 70,408 119 70,289 Consumer 84 — 84 5,306 95 5,211 Unallocated 868 N/A N/A N/A N/A N/A $ 7,593 $ 717 $ 6,008 $ 608,124 $ 12,773 $ 595,351 Allowance for Loan Losses Loans Receivable December 31, 2015 Balance Balance related to loans individually evaluated for impairment Balance related to loans collectively evaluated for impairment Balance Balance individually evaluated for impairment Balance collectively evaluated for impairment Commercial: Commercial and industrial $ 1,521 $ 712 $ 809 $ 124,397 $ 4,586 $ 119,811 Construction 286 — 286 27,372 364 27,008 Secured by commercial real estate 2,411 14 2,397 235,171 6,998 228,173 Secured by residential real estate 1,812 203 1,609 63,164 2,113 61,051 State and political subdivisions 222 — 222 40,285 — 40,285 Indirect lease financing 164 20 144 10,371 146 10,225 Retail: 1-4 family residential mortgages 350 25 325 42,833 583 42,250 Home equity loans and lines 428 — 428 67,384 151 67,233 Consumer 76 — 76 4,286 — 4,286 Unallocated 284 N/A N/A N/A N/A N/A $ 7,554 $ 974 $ 6,296 $ 615,263 $ 14,941 $ 600,322 |
Impaired Loans | September 30, 2016 December 31, 2015 Recorded investment (after charge-offs) Unpaid principal balance Related allowance Recorded investment (after charge-offs) Unpaid principal balance Related allowance With no specific allowance recorded: Commercial: Commercial and industrial $ 3,167 $ 3,531 $ — $ 3,629 $ 3,923 $ — Construction 280 301 — 364 364 — Secured by commercial real estate 6,050 6,004 — 6,932 7,416 — Secured by residential real estate 918 1,286 — 942 1,653 — State and political subdivisions — — — — — — Indirect lease financing — — — 3 3 — Retail: 1-4 family residential mortgages 381 398 — 393 406 — Home equity loans and lines 119 180 — 151 201 — Consumer 95 96 — - - — $ 11,010 $ 11,796 $ — $ 12,414 $ 13,966 $ — With an allowance recorded: Commercial: Commercial and industrial $ 653 $ 804 $ 462 $ 957 $ 1,086 $ 712 Construction — — — — — — Secured by commercial real estate — — — 66 66 14 Secured by residential real estate 798 929 189 1,171 1,279 203 State and political subdivisions — — — — — — Indirect lease financing 132 134 55 143 145 20 Retail: 1-4 family residential mortgages 180 194 11 190 197 25 Home equity loans and lines — — — — — — Consumer — — — — — — $ 1,763 $ 2,061 $ 717 $ 2,527 $ 2,773 $ 974 Total: Commercial: Commercial and industrial $ 3,820 $ 4,335 $ 462 $ 4,586 $ 5,009 $ 712 Construction 280 301 — 364 364 — Secured by commercial real estate 6,050 6,004 — 6,998 7,482 14 Secured by residential real estate 1,716 2,215 189 2,113 2,932 203 State and political subdivisions — — — — — — Indirect lease financing 132 134 55 146 148 20 Retail: 1-4 family residential mortgages 561 592 11 583 603 25 Home equity loans and lines 119 180 — 151 201 - Consumer 95 96 — - - — $ 12,773 $ 13,857 $ 717 $ 14,941 $ 16,739 $ 974 Nine Months Ended September 30, 2016 2015 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Commercial: Commercial and industrial $ 4,288 $ 50 $ 6,301 $ 154 Construction 412 15 410 16 Secured by commercial real estate 6,327 100 7,881 121 Secured by residential real estate 1,945 11 1,522 — State and political subdivisions — — — — Indirect lease financing 114 — 22 1 Retail: 1-4 family residential mortgages 572 8 415 4 Home equity loans and lines 134 1 130 1 Consumer 10 — 3 — $ 13,802 $ 185 $ 16,684 $ 297 |
Note 9 - Fair Value Measureme25
Note 9 - Fair Value Measurements and Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Measured at Fair Value on a Recurring and Nonrecurring Basis | September 30, 2016 Quoted 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 securities $ — $ 4,312 $ — $ 4,312 Securities available-for-sale U.S. Government agency securities — $ 65,812 — $ 65,812 State and municipal securities — 73,560 — 73,560 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed securities — 132,746 — 132,746 Collateralized mortgage obligations (CMOs) — 79,264 — 79,264 Pooled trust preferred securities — — $ 2,275 2,275 Corporate debt securities — 7,112 — 7,112 Equity securities $ 8,065 — — 8,065 Total securities available-for-sale $ 8,065 $ 358,494 $ 2,275 $ 368,834 Total recurring fair value measurements $ 8,065 $ 362,806 $ 2,275 $ 373,146 Nonrecurring fair value measurements Impaired loans $ — $ — $ 1,046 $ 1,046 Mortgage servicing rights — — 142 142 Total nonrecurring fair value measurements $ — $ — $ 1,188 $ 1,188 December 31, 2015 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 securities $ — $ 4,189 $ — $ 4,189 Securities available-for-sale U.S. Government agency securities — $ 61,779 — $ 61,779 State and municipal securities — 78,954 — 78,954 U.S. Government agencies and sponsored enterprises (GSEs): Mortgage-backed securities — 136,681 — 136,681 Collateralized mortgage obligations (CMOs) — 65,610 — 65,610 Pooled trust preferred securities — — $ 2,653 2,653 Corporate debt securities — 9,004 — 9,004 Equity securities $ 7,234 — — 7,234 Total securities available-for-sale $ 7,234 $ 352,028 $ 2,653 $ 361,915 Total recurring fair value measurements $ 7,234 $ 356,217 $ 2,653 $ 366,104 Nonrecurring fair value measurements Impaired loans $ — $ — $ 1,698 $ 1,698 Mortgage servicing rights — — 133 133 Total nonrecurring fair value measurements $ — $ — $ 1,831 $ 1,831 |
Quantitative Information about Assets Measured at Fair Value | Quantitative information about Level 3 fair value measurements September 30, 2016 Fair Valuation techniques Unobservable input Value of values Impaired loans $ 778 Appraisal (1) Appraisal adjustments (2) -20% to -90% Liquidation expenses (3) -10% Impaired loans 140 Used commercial vehicle and equipment guides Guide value discounts (4) 0% to -30% Impaired loans 128 Financial statement values for UCC collateral Financial statement value discounts (5) -20% to -25% Mortgage servicing rights 142 Discounted cash flow Remaining term 2 - 27 yrs Discount rate 12% to 14% Quantitative information about Level 3 fair value measurements December 31, 2015 Fair value Valuation techniques Unobservable input Value or range of values Impaired loans $ 1,331 Appraisal of collateral (1) Appraisal adjustments (2) -15% to -80% Liquidation expenses (3) -10% Impaired loans 199 Used commercial vehicle and equipment guides Guide value discounts (4) 0% to -30% Impaired loans 168 Financial statement values for UCC collateral Financial statement value discounts (5) -25% to -70% Mortgage servicing rights 133 Discounted cash flow Remaining term 3 - 28 yrs Discount rate 10% to 12% |
Available-for-sale Securities Measured at Fair Value Using Significant Unobservable Inputs | Fair value measurements using significant unobservable inputs (Level 3) Balance, January 1, 2016 $ 2,653 Payments received (312 ) Total gains or losses (realized/unrealized) Included in earnings — Included in other comprehensive income (66 ) Transfers in and/or out of Level 3 — Balance, September 30, 2016 $ 2,275 |
Financial and Off-balance Sheet Instruments | Fair value measurements September 30, 2016 Carrying amount Fai r Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents $ 69,428 $ 69,428 $ 69,428 — — Investment securities: Trading 4,312 4,312 — $ 4,312 — Available-for-sale 368,834 368,834 8,065 358,494 $ 2,275 Held-to-maturity 147 147 — 147 — Restricted investment in bank stocks 522 522 — 522 — Loans held-for-sale 456 466 — 466 — Net loans 600,638 610,066 — — 610,066 Mortgage servicing rights 498 555 — — 555 Accrued interest receivable 2,573 2,573 — 2,573 — Financial liabilities Deposits with no stated maturities $ 698,336 $ 698,336 $ 698,336 — $ — Deposits with stated maturities 228,376 230,993 — $ 230,993 — Short-term borrowings 41,179 41,179 41,179 — — Accrued interest payable 310 310 — 310 — Off-balance sheet instruments Commitments to extend credit $ — $ — $ — $ — $ — Standby letters of credit — — — — — Fair value measurements December 31, 2015 Carrying amount Fai r Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Financial assets Cash and cash equivalents $ 16,991 $ 16,991 $ 16,991 — — Investment securities: Trading 4,189 4,189 — $ 4,189 — Available-for-sale 361,915 361,915 7,234 352,028 $ 2,653 Held-to-maturity 147 151 — 151 — Restricted investment in bank stocks 508 508 — 508 — Loans held-for-sale 987 1,004 — 1,004 — Net loans 607,716 610,315 — — 610,315 Mortgage servicing rights 504 642 — — 642 Accrued interest receivable 2,562 2,562 — 2,562 — Financial liabilities Deposits with no stated maturities $ 662,410 $ 662,410 $ 662,410 — $ — Deposits with stated maturities 227,376 227,862 — $ 227,862 — Short-term borrowings 37,163 37,163 37,163 — — Accrued interest payable 330 330 — 330 — Off-balance sheet instruments Commitments to extend credit $ — $ — $ — $ — $ — Standby letters of credit — — — — — |
Note 10 - Off-balance-sheet F26
Note 10 - Off-balance-sheet Financial Instruments and Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Financial Instrument Commitments | A summary of the Bank's financial instrument commitments is as follows: September 30, December 31, 2016 2015 Commitments to extend credit and unused lines of credit $ 308,483 $ 232,492 Standby letters of credit 12,980 9,493 Total financial instrument commitments $ 321,463 $ 241,985 |
Note 11 - Regulatory Restrict27
Note 11 - Regulatory Restrictions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Banking And Thrift [Abstract] | |
Capital Ratios and Regulatory Minimum Requirements | Capital levels Actual Minimum required Well capitalized As of September 30, 2016 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets): Consolidated $ 103,357 13.08 % $ 63,207 8.00 % $ 79,009 10.00 % Bank 95,163 12.43 61,266 8.00 76,583 10.00 Tier I capital (to risk-weighted assets): Consolidated 95,704 12.11 47,405 6.00 47,405 6.00 Bank 87,511 11.43 45,950 6.00 61,266 8.00 Common equity tier 1 capital (to risk-weighted assets): Consolidated 95,704 12.11 35,554 4.50 N/A N/A Bank 87,511 11.43 34,462 4.50 49,779 6.50 Tier I capital (to average assets): Consolidated 95,704 9.08 42,160 4.00 N/A N/A Bank 87,511 8.37 41,835 4.00 52,293 5.00 Capital levels Actual Adequately capitalized Well capitalized As of December 31, 2015 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (to risk-weighted assets): Consolidated $ 98,432 12.58 % $ 62,613 8.00 % $ 78,266 10.00 % Bank 91,091 11.97 60,874 8.00 76,093 10.00 Tier I capital (to risk-weighted assets): Consolidated 90,819 11.60 46,960 6.00 46,960 6.00 Bank 83,478 10.97 45,656 6.00 60,874 8.00 Common equity tier 1 capital (to risk-weighted assets): Consolidated 90,819 11.60 35,220 4.50 N/A N/A Bank 83,478 10.97 34,242 4.50 49,460 6.50 Tier I capital (to average assets): Consolidated 90,819 8.87 40,934 4.00 N/A N/A Bank 83,478 8.22 40,632 4.00 50,790 5.00 |
Note 3 - Stock-based Compensa28
Note 3 - Stock-based Compensation and Shareholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Allocated Share-based Compensation Expense | $ 18 | $ 18 | $ 60 | $ 64 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 102 | $ 102 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 29 months | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 78,225 | 84,575 | 78,225 | 84,575 | 82,875 | 88,375 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 23,500 | 21,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 18,425 | 12,150 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.79 | $ 4.38 | ||||
The 1998 Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 220,500 | 220,500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 60,244 | |||||
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, Exercises in Period | 164,814 | |||||
The 1998 Plan [Member] | Employee Stock Option [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
The 1998 Plan [Member] | Employee Stock Option [Member] | Minimum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 6 months | |||||
The 1998 Plan [Member] | Employee Stock Option [Member] | Maximum [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||
The 2005 Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 54,725 | 54,725 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 65,050 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 184,200 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 64,425 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 200,000 | |||||
The 2005 Plan [Member] | Employee Stock Option [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | |||||
The 2015 Plan [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 23,500 | 23,500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 300,000 | 300,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 23,500 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 |
Note 3 - Assumptions Used in Op
Note 3 - Assumptions Used in Option Pricing Model (Details) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk free interest rate | 1.14% | 1.06% |
Dividend yield | 3.78% | 3.86% |
Volatility | 22.62% | 26.74% |
Expected life (years) | 4 years 2 months 12 days | 5 years |
Note 3 - Stock Option Activity
Note 3 - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ||
Outstanding-Number of options (in shares) | 82,875 | 88,375 |
Granted-Number of options (in shares) | 23,500 | 21,000 |
Exercised-Number of options (in shares) | (18,425) | (12,150) |
Forfeited-Number of options (in shares) | (9,725) | (12,650) |
Outstanding ending-Number of options (in shares) | 78,225 | 84,575 |
Exercisable-Number of options (in shares) | 23,100 | 30,375 |
Outstanding-Weighted average exercise price (in dollars per share) | $ 24.33 | $ 23.27 |
Granted-Weighted average exercise price (in dollars per share) | 30.40 | 29.25 |
Exercised-Weighted average exercise price (in dollars per share) | 20.70 | 17.81 |
Forfeited-Weighted average exercise price (in dollars per share) | 25.61 | 31.87 |
Outstanding ending-Weighted average exercise price (in dollars per share) | 26.85 | 24.25 |
Exercisable-Weighted average exercise price (in dollars per share) | $ 22.38 | $ 20.87 |
Outstanding ending-Weighted average remaining contractual term | 2 years 8 months 27 days | 2 years 6 months |
Exercisable-Weighted average remaining contractual term | 10 months 13 days | 10 months 21 days |
Outstanding ending-Aggregate intrinsic value | $ 560 | $ 444 |
Exercisable-Aggregate intrinsic value | $ 268 | $ 262 |
Note 4 - Share Repurchase Plan
Note 4 - Share Repurchase Plan (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Equity Class Of Treasury Stock [Line Items] | |||
Treasury Stock, Shares | 164,569 | 164,569 | |
Treasury Stock, Value | $ 2,476 | $ 2,476 | |
Share Repurchase Program 1 [Member] | |||
Equity Class Of Treasury Stock [Line Items] | |||
Treasury Stock, Shares, Acquired | 0 | 0 | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 100,000 | ||
Treasury Stock, Shares | 57,883 | ||
Treasury Stock Shares Average Price Per Share Acquired | $ 16.97 | ||
Treasury Stock, Value | $ 982 |
Note 5 - Computation of Basic a
Note 5 - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Numerator for basic and diluted earnings per share - net income | $ 2,292 | $ 2,220 | $ 6,655 | $ 6,290 |
Denominator for basic earnings per share - weighted average shares outstanding | 3,391,471 | 3,343,011 | 3,381,491 | 3,332,650 |
Effect of dilutive securities - employee stock options | 12,568 | 13,778 | 9,238 | 12,980 |
Denominator for diluted earnings per share - adjusted weighted average shares outstanding | 3,404,039 | 3,356,789 | 3,390,729 | 3,345,630 |
Earnings per share - basic | $ 0.68 | $ 0.66 | $ 1.97 | $ 1.89 |
Earnings per share - diluted | $ 0.67 | $ 0.66 | $ 1.96 | $ 1.88 |
Note 5 - Earnings Per Share (De
Note 5 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 21,000 | 41,350 | 21,000 |
Note 6 - Components of Accumula
Note 6 - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated other comprehensive income (loss) | $ 3,467 | $ (827) |
Tax effect | (1,179) | 281 |
Accumulated other comprehensive income (loss), net of tax | 2,288 | (546) |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated other comprehensive income (loss) | 3,780 | (568) |
Accumulated Other-than-Temporary Impairment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Accumulated other comprehensive income (loss) | $ (313) | $ (259) |
Note 6 - Amounts Reclassified O
Note 6 - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclass out of accumulated other comprehensive income, before tax | $ 3,113 | $ 2,935 | $ 8,966 | $ 8,289 |
Tax effect | (821) | (715) | (2,311) | (1,999) |
Net income | 2,292 | 2,220 | 6,655 | 6,290 |
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Unrealized net holding gains on available-for-sale securities | 316 | 83 | 842 | 800 |
Other-than-temporary impairment losses on investment securities | (192) | |||
Total reclass out of accumulated other comprehensive income, before tax | 650 | 800 | ||
Tax effect | (108) | (28) | (221) | (273) |
Net income | $ 208 | $ 55 | $ 429 | $ 527 |
Note 7 -Investment Securities (
Note 7 -Investment Securities (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($)security | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)security | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Investment Securities [Line Items] | |||||
Net (loss) gain on trading activities | $ (39,000) | $ 36,000 | $ 47,000 | $ 17,000 | |
Trading Securities, Change in Unrealized Holding Gain (Loss) | 13,000 | $ 31,000 | |||
Available-for-sale Securities, Gross Realized Gains (Losses), Sale Proceeds | 3,078,000 | 685,000 | 31,892,000 | 27,480,000 | |
Income Tax Expense Benefit Related to Net Realized Gains Losses on Sales of Securities | 107,000 | $ 29,000 | 221,000 | 273,000 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, Additional Credit Losses | 0 | 0 | |||
Available-for-sale, amortized cost | 365,367,000 | 365,367,000 | 362,742,000 | ||
Fair value | $ 368,834,000 | $ 368,834,000 | 361,915,000 | ||
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% | 2.00% | |||
Bank Failure Rate | 0.37% | ||||
Fair Value Inputs, Loss Severity | 95.00% | ||||
U.S. Government Agency and Sponsored Enterprises Securities [Member] | |||||
Investment Securities [Line Items] | |||||
Available-for-sale Securities Pledged as Collateral | $ 215,013,000 | $ 215,013,000 | 197,149,000 | ||
Collateralized Debt Obligations [Member] | |||||
Investment Securities [Line Items] | |||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Additions, Additional Credit Losses | $ 0 | $ 0 | |||
Number Of Trust Preferred Securities | security | 6 | 6 | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | security | 5 | 5 | |||
Available-for-sale, amortized cost | $ 2,979,000 | $ 2,979,000 | 3,291,000 | ||
Fair value | $ 2,275,000 | $ 2,275,000 | $ 2,653,000 | ||
Collateralized Debt Obligations [Member] | Minimum [Member] | |||||
Investment Securities [Line Items] | |||||
Fair Value Inputs, Probability of Default | 0.25% | ||||
Fair Value Inputs, Loss Severity | 0.00% | ||||
Collateralized Debt Obligations [Member] | Maximum [Member] | |||||
Investment Securities [Line Items] | |||||
Fair Value Inputs, Probability of Default | 0.51% | ||||
Fair Value Inputs, Loss Severity | 100.00% |
Note 7 -Trading Securities (Det
Note 7 -Trading Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
State and municipal securities | $ 4,312 | $ 4,189 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
State and municipal securities | $ 4,312 | $ 4,189 |
Note 7 -Investment Securities A
Note 7 -Investment Securities Available-for-sale (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale | $ 368,834 | $ 361,915 |
Investment securities available-for-sale, gross unrealized holding gains | 5,201 | 3,554 |
Investment securities available-for-sale, gross unrealized holding losses | (1,734) | (4,381) |
Investment securities available-for-sale, amortized cost | 365,367 | 362,742 |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale | 65,812 | 61,779 |
Investment securities available-for-sale, gross unrealized holding gains | 167 | 88 |
Investment securities available-for-sale, gross unrealized holding losses | (98) | (490) |
Investment securities available-for-sale, amortized cost | 65,743 | 62,181 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale | 73,560 | 78,954 |
Investment securities available-for-sale, gross unrealized holding gains | 1,701 | 1,554 |
Investment securities available-for-sale, gross unrealized holding losses | (37) | (31) |
Investment securities available-for-sale, amortized cost | 71,896 | 77,431 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale | 132,746 | 136,681 |
Investment securities available-for-sale, gross unrealized holding gains | 2,277 | 944 |
Investment securities available-for-sale, gross unrealized holding losses | (11) | (920) |
Investment securities available-for-sale, amortized cost | 130,480 | 136,657 |
Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale | 79,264 | 65,610 |
Investment securities available-for-sale, gross unrealized holding gains | 422 | 178 |
Investment securities available-for-sale, gross unrealized holding losses | (298) | (1,178) |
Investment securities available-for-sale, amortized cost | 79,140 | 66,610 |
Collateralized Debt Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale | 2,275 | 2,653 |
Investment securities available-for-sale, gross unrealized holding gains | 246 | 259 |
Investment securities available-for-sale, gross unrealized holding losses | (950) | (897) |
Investment securities available-for-sale, amortized cost | 2,979 | 3,291 |
Corporate Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale | 7,112 | 9,004 |
Investment securities available-for-sale, gross unrealized holding gains | 50 | 15 |
Investment securities available-for-sale, gross unrealized holding losses | (8) | (95) |
Investment securities available-for-sale, amortized cost | 7,070 | 9,084 |
Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale | 8,065 | 7,234 |
Investment securities available-for-sale, gross unrealized holding gains | 338 | 516 |
Investment securities available-for-sale, gross unrealized holding losses | (332) | (770) |
Investment securities available-for-sale, amortized cost | $ 8,059 | $ 7,488 |
Note 7 - Investment Securitie39
Note 7 - Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investments Debt And Equity Securities [Abstract] | ||
Due in one year or less | $ 6,140 | |
Due after one year through five years | 240,710 | |
Due after five years through ten years | 101,608 | |
Due after ten years | 12,311 | |
Equity securities | 8,065 | |
Investment securities available-for-sale | 368,834 | $ 361,915 |
Due in one year or less | 6,085 | |
Due after one year through five years | 237,900 | |
Due after five years through ten years | 100,465 | |
Due after ten years | 12,858 | |
Equity securities | 8,059 | |
Investment securities available-for-sale, amortized cost | 365,367 | 362,742 |
Due in one year or less | 147 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 0 | |
Held-to-maturity, fair value | 147 | 151 |
Due in one year or less | 147 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 0 | |
Due after ten years | 0 | |
Total investment securities held-to-maturity | $ 147 | $ 147 |
Note 7 -Gross Realized Losses o
Note 7 -Gross Realized Losses on Equity and Debt Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||||
Gross realized gains | $ 316 | $ 83 | $ 915 | $ 867 |
Gross realized losses | 0 | 0 | (73) | (67) |
Other-than-temporary impairment losses | 0 | 0 | (192) | |
Net gain on investment securities | 316 | 83 | 650 | 800 |
Equity Securities [Member] | ||||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||||
Gross realized gains | 316 | 83 | 734 | 713 |
Gross realized losses | 0 | 0 | (23) | |
Other-than-temporary impairment losses | 0 | 0 | (192) | |
Net gain on investment securities | 316 | 83 | 542 | 690 |
Debt Securities [Member] | ||||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||||
Gross realized gains | 0 | 0 | 181 | 154 |
Gross realized losses | 0 | 0 | (73) | (44) |
Other-than-temporary impairment losses | 0 | 0 | ||
Net gain on investment securities | $ 0 | $ 0 | $ 108 | $ 110 |
Note 7 -Credit-related Other-th
Note 7 -Credit-related Other-than-temporary Impairment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Investments Debt And Equity Securities [Abstract] | ||
Balance, beginning of period | $ 1,153 | $ 1,153 |
Initial credit impairments | 0 | 0 |
Subsequent credit impairments | 0 | 0 |
Balance, end of period | $ 1,153 | $ 1,153 |
Note 7 -Investment Securities H
Note 7 -Investment Securities Held-to-maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Held To Maturity Securities [Line Items] | ||
State and municipal securities | $ 147 | $ 147 |
Held-to-maturity, fair value | 147 | 151 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
State and municipal securities | 147 | 147 |
State and municipal securities | 0 | 4 |
State and municipal securities | 0 | 0 |
Held-to-maturity, fair value | $ 147 | $ 151 |
Note 7 -Securities in a Continu
Note 7 -Securities in a Continuous Unrealized Loss Position (Details) | Sep. 30, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Schedule Of Available For Sale Securities [Line Items] | ||
No. of securities | security | 94 | 193 |
Securities in an unrealized loss position less than 12 months, fair value | $ 64,374,000 | $ 176,786,000 |
Securities in an unrealized loss position less than 12 months, unrealized losses | (486,000) | (2,359,000) |
Securities in an unrealized loss position 12 months or longer, fair value | 19,829,000 | 36,124,000 |
Securities in an unrealized loss position 12 months or longer, unrealized losses | (1,248,000) | (2,022,000) |
Securities in an unrealized loss position, fair value | 84,203,000 | 212,910,000 |
Securities in an unrealized loss position, unrealized losses | $ (1,734,000) | $ (4,381,000) |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
No. of securities | security | 15 | 32 |
Securities in an unrealized loss position less than 12 months, fair value | $ 20,918,000 | $ 40,949,000 |
Securities in an unrealized loss position less than 12 months, unrealized losses | (98,000) | (418,000) |
Securities in an unrealized loss position 12 months or longer, fair value | 4,426,000 | |
Securities in an unrealized loss position 12 months or longer, unrealized losses | (72,000) | |
Securities in an unrealized loss position, fair value | 20,918,000 | 45,375,000 |
Securities in an unrealized loss position, unrealized losses | $ (98,000) | $ (490,000) |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
No. of securities | security | 11 | 20 |
Securities in an unrealized loss position less than 12 months, fair value | $ 3,796,000 | $ 6,646,000 |
Securities in an unrealized loss position less than 12 months, unrealized losses | (37,000) | (19,000) |
Securities in an unrealized loss position 12 months or longer, fair value | 1,555,000 | |
Securities in an unrealized loss position 12 months or longer, unrealized losses | (12,000) | |
Securities in an unrealized loss position, fair value | 3,796,000 | 8,201,000 |
Securities in an unrealized loss position, unrealized losses | $ (37,000) | $ (31,000) |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
No. of securities | security | 6 | 62 |
Securities in an unrealized loss position less than 12 months, fair value | $ 9,222,000 | $ 90,796,000 |
Securities in an unrealized loss position less than 12 months, unrealized losses | (11,000) | (871,000) |
Securities in an unrealized loss position 12 months or longer, fair value | 1,403,000 | |
Securities in an unrealized loss position 12 months or longer, unrealized losses | (49,000) | |
Securities in an unrealized loss position, fair value | 9,222,000 | 92,199,000 |
Securities in an unrealized loss position, unrealized losses | $ (11,000) | $ (920,000) |
Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
No. of securities | security | 38 | 49 |
Securities in an unrealized loss position less than 12 months, fair value | $ 27,179,000 | $ 28,372,000 |
Securities in an unrealized loss position less than 12 months, unrealized losses | (100,000) | (261,000) |
Securities in an unrealized loss position 12 months or longer, fair value | 15,823,000 | 26,354,000 |
Securities in an unrealized loss position 12 months or longer, unrealized losses | (198,000) | (917,000) |
Securities in an unrealized loss position, fair value | 43,002,000 | 54,726,000 |
Securities in an unrealized loss position, unrealized losses | $ (298,000) | $ (1,178,000) |
Collateralized Debt Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
No. of securities | security | 5 | 5 |
Securities in an unrealized loss position less than 12 months, fair value | $ 0 | $ 0 |
Securities in an unrealized loss position less than 12 months, unrealized losses | 0 | 0 |
Securities in an unrealized loss position 12 months or longer, fair value | 1,938,000 | 2,193,000 |
Securities in an unrealized loss position 12 months or longer, unrealized losses | (950,000) | (897,000) |
Securities in an unrealized loss position, fair value | 1,938,000 | 2,193,000 |
Securities in an unrealized loss position, unrealized losses | $ (950,000) | $ (897,000) |
Corporate Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
No. of securities | security | 1 | 6 |
Securities in an unrealized loss position less than 12 months, fair value | $ 5,988,000 | |
Securities in an unrealized loss position less than 12 months, unrealized losses | (95,000) | |
Securities in an unrealized loss position 12 months or longer, fair value | $ 1,003,000 | |
Securities in an unrealized loss position 12 months or longer, unrealized losses | (8,000) | |
Securities in an unrealized loss position, fair value | 1,003,000 | 5,988,000 |
Securities in an unrealized loss position, unrealized losses | $ (8,000) | $ (95,000) |
Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
No. of securities | security | 18 | 19 |
Securities in an unrealized loss position less than 12 months, fair value | $ 3,259,000 | $ 4,035,000 |
Securities in an unrealized loss position less than 12 months, unrealized losses | (240,000) | (695,000) |
Securities in an unrealized loss position 12 months or longer, fair value | 1,065,000 | 193,000 |
Securities in an unrealized loss position 12 months or longer, unrealized losses | (92,000) | (75,000) |
Securities in an unrealized loss position, fair value | 4,324,000 | 4,228,000 |
Securities in an unrealized loss position, unrealized losses | $ (332,000) | $ (770,000) |
Note 7 -Pooled Trust Preferred
Note 7 -Pooled Trust Preferred Securities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)bankInsuranceCompany | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)bankInsuranceCompany | Dec. 31, 2015USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | ||||
Investment securities available-for-sale, amortized cost | $ 365,367 | $ 365,367 | $ 362,742 | |
Fair value | 368,834 | 368,834 | 361,915 | |
Total recognized OTTI credit loss | 0 | $ 0 | $ (192) | |
PreTSL IV [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Class | Mezzanine | |||
Investment securities available-for-sale, amortized cost | 243 | $ 243 | ||
Fair value | $ 188 | 188 | ||
Unrealized gains (losses) | (55) | |||
Realized OTTI credit loss | 0 | |||
Total recognized OTTI credit loss | $ (1) | |||
Moody's/Fitch ratings | B1/BB | |||
Current number of performing banks | bank | 5 | 5 | ||
Current number of performing insurance companies | InsuranceCompany | 0 | 0 | ||
Actual deferrals and defaults as a % of total collateral | 18.00% | |||
Total performing collateral as a % of outstanding bonds | 141.20% | |||
PreTSL XVII [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Class | Mezzanine | |||
Investment securities available-for-sale, amortized cost | $ 606 | $ 606 | ||
Fair value | $ 456 | 456 | ||
Unrealized gains (losses) | (150) | |||
Realized OTTI credit loss | 0 | |||
Total recognized OTTI credit loss | $ (222) | |||
Moody's/Fitch ratings | C/CC | |||
Current number of performing banks | bank | 34 | 34 | ||
Current number of performing insurance companies | InsuranceCompany | 5 | 5 | ||
Actual deferrals and defaults as a % of total collateral | 21.60% | |||
Total performing collateral as a % of outstanding bonds | 99.70% | |||
PreTSL XIX [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Class | Mezzanine | |||
Investment securities available-for-sale, amortized cost | $ 874 | $ 874 | ||
Fair value | $ 483 | 483 | ||
Unrealized gains (losses) | (391) | |||
Realized OTTI credit loss | 0 | |||
Total recognized OTTI credit loss | $ 0 | |||
Moody's/Fitch ratings | Caa1/CC | |||
Current number of performing banks | bank | 41 | 41 | ||
Current number of performing insurance companies | InsuranceCompany | 12 | 12 | ||
Actual deferrals and defaults as a % of total collateral | 7.70% | |||
Total performing collateral as a % of outstanding bonds | 102.00% | |||
PreTSL XXV [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Class | Mezzanine | |||
Investment securities available-for-sale, amortized cost | $ 766 | $ 766 | ||
Fair value | $ 488 | 488 | ||
Unrealized gains (losses) | (279) | |||
Realized OTTI credit loss | 0 | |||
Total recognized OTTI credit loss | $ (222) | |||
Moody's/Fitch ratings | Ca/C | |||
Current number of performing banks | bank | 44 | 44 | ||
Current number of performing insurance companies | InsuranceCompany | 5 | 5 | ||
Actual deferrals and defaults as a % of total collateral | 27.00% | |||
Total performing collateral as a % of outstanding bonds | 89.30% | |||
PreTSL XXVI [Member] | Security One [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Class | Mezzanine | |||
Investment securities available-for-sale, amortized cost | $ 399 | $ 399 | ||
Fair value | $ 323 | 323 | ||
Unrealized gains (losses) | (75) | |||
Realized OTTI credit loss | 0 | |||
Total recognized OTTI credit loss | $ (270) | |||
Moody's/Fitch ratings | Caa3/C | |||
Current number of performing banks | bank | 45 | 45 | ||
Current number of performing insurance companies | InsuranceCompany | 7 | 7 | ||
Actual deferrals and defaults as a % of total collateral | 18.00% | |||
Total performing collateral as a % of outstanding bonds | 97.40% | |||
PreTSL XXVI [Member] | Security Two [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Class | Mezzanine | |||
Investment securities available-for-sale, amortized cost | $ 91 | $ 91 | ||
Fair value | $ 337 | 337 | ||
Unrealized gains (losses) | 246 | |||
Realized OTTI credit loss | 0 | |||
Total recognized OTTI credit loss | $ (438) | |||
Moody's/Fitch ratings | Caa3/C | |||
Current number of performing banks | bank | 45 | 45 | ||
Current number of performing insurance companies | InsuranceCompany | 7 | 7 | ||
Actual deferrals and defaults as a % of total collateral | 18.00% | |||
Total performing collateral as a % of outstanding bonds | 97.40% | |||
Collateralized Debt Obligations [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Investment securities available-for-sale, amortized cost | $ 2,979 | $ 2,979 | 3,291 | |
Fair value | $ 2,275 | 2,275 | $ 2,653 | |
Unrealized gains (losses) | (704) | |||
Realized OTTI credit loss | 0 | |||
Total recognized OTTI credit loss | $ (1,153) |
Note 8 - Major Classes of Loans
Note 8 - Major Classes of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans and leases receivable | $ 608,124 | $ 615,263 |
Net unearned costs | 107 | 7 |
Loans receivable | 608,231 | 615,270 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans and leases receivable | 110,892 | 124,397 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans and leases receivable | 32,133 | 27,372 |
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans and leases receivable | 233,430 | 235,171 |
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans and leases receivable | 65,671 | 63,164 |
State and Political Subdivisions Portfolio Segment [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans and leases receivable | 35,033 | 40,285 |
Finance Leases Portfolio Segment [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans and leases receivable | 8,707 | 10,371 |
Retail Portfolio Segment [Member] | Consumer Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans and leases receivable | 5,306 | 4,286 |
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans and leases receivable | 46,544 | 42,833 |
Retail Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans and leases receivable | $ 70,408 | $ 67,384 |
Note 8 - Loans & Allowance fo46
Note 8 - Loans & Allowance for Loan Losses (Details Textual) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)contract | Sep. 30, 2015contract | Sep. 30, 2016USD ($)contractloan | Sep. 30, 2015USD ($)contract | Dec. 31, 2015USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |||||
Bank Overdrafts | $ 172,000 | $ 172,000 | $ 203,000 | ||
Financing Receivable, Modifications, Recorded Investment | $ 3,428,000 | $ 3,428,000 | 2,278,000 | ||
Number of TDRs | contract | 1 | 1 | 11 | 1 | |
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 2,020,000 | $ 2,020,000 | 1,919,000 | ||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | $ 0 | $ 5,000 | |||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | contract | 0 | 0 | 0 | 0 | |
Consumer Mortgage Loan on Real Estate Number of Loan in Foreclosure | loan | 0 | ||||
Performing Financial Instruments [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $ 1,149,000 | $ 1,149,000 | 1,288,000 | ||
Nonperforming Financial Instruments [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Financing Receivable, Modifications, Recorded Investment | $ 2,279,000 | $ 2,279,000 | $ 990,000 | ||
Residential Portfolio Segment [Member] | Maximum [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loan to Value Ratio | 80.00% |
Note 8 - Internal Risk Ratings
Note 8 - Internal Risk Ratings and Payment Activity (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | $ 608,124 | $ 615,263 |
Excluding Retail Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 485,866 | 500,760 |
Excluding Retail Loans [Member] | Pass [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 459,264 | 473,040 |
Excluding Retail Loans [Member] | Special Mention [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 4,437 | 395 |
Excluding Retail Loans [Member] | Substandard [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 22,165 | 27,325 |
Excluding Retail Loans [Member] | Doubtful [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 110,892 | 124,397 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 102,130 | 117,246 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Special Mention [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 700 | 0 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Substandard [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 8,062 | 7,151 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Doubtful [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 32,133 | 27,372 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 32,122 | 27,355 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 11 | 17 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Doubtful [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 233,430 | 235,171 |
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 218,404 | 218,958 |
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 3,504 | 361 |
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 11,522 | 15,852 |
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 65,671 | 63,164 |
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 63,004 | 60,286 |
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 233 | 34 |
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 2,434 | 2,844 |
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 0 | 0 |
State and Political Subdivisions Portfolio Segment [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 35,033 | 40,285 |
State and Political Subdivisions Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 35,033 | 39,027 |
State and Political Subdivisions Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 0 | 0 |
State and Political Subdivisions Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 0 | 1,258 |
State and Political Subdivisions Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 0 | 0 |
Finance Leases Portfolio Segment [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 8,707 | 10,371 |
Finance Leases Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 8,571 | 10,168 |
Finance Leases Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 0 | 0 |
Finance Leases Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 136 | 203 |
Finance Leases Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | $ 0 | $ 0 |
Note 8 - Retail Loans by Credit
Note 8 - Retail Loans by Credit Quality (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | $ 608,124 | $ 615,263 |
Total Retail Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 122,258 | 114,503 |
Performing Financial Instruments [Member] | Total Retail Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 121,797 | 114,089 |
Nonperforming Financial Instruments [Member] | Total Retail Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 461 | 414 |
Retail Portfolio Segment [Member] | Consumer Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 5,306 | 4,286 |
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 46,544 | 42,833 |
Retail Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 70,408 | 67,384 |
Retail Portfolio Segment [Member] | Performing Financial Instruments [Member] | Consumer Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 5,211 | 4,286 |
Retail Portfolio Segment [Member] | Performing Financial Instruments [Member] | Family Residential Mortgages [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 46,274 | 42,546 |
Retail Portfolio Segment [Member] | Performing Financial Instruments [Member] | Home Equity Loan [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 70,312 | 67,257 |
Retail Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Consumer Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 95 | 0 |
Retail Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Family Residential Mortgages [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | 270 | 287 |
Retail Portfolio Segment [Member] | Nonperforming Financial Instruments [Member] | Home Equity Loan [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans and leases receivable | $ 96 | $ 127 |
Note 8 - Past Due Loans (Detail
Note 8 - Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | $ 4,287 | $ 3,719 |
Loans current | 603,837 | 611,544 |
Loans and leases receivable | 608,124 | 615,263 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 1,284 | 1,846 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 1,533 | 394 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 1,470 | 1,479 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 15 | 95 |
Loans current | 110,877 | 124,302 |
Loans and leases receivable | 110,892 | 124,397 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 15 | 95 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 63 |
Loans current | 32,133 | 27,309 |
Loans and leases receivable | 32,133 | 27,372 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 63 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 3,049 | 1,378 |
Loans current | 230,381 | 233,793 |
Loans and leases receivable | 233,430 | 235,171 |
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 962 | 443 |
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 1,226 | 0 |
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 861 | 935 |
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 419 | 466 |
Loans current | 65,252 | 62,698 |
Loans and leases receivable | 65,671 | 63,164 |
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 92 | 0 |
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 97 |
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 327 | 369 |
State and Political Subdivisions Portfolio Segment [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Loans current | 35,033 | 40,285 |
Loans and leases receivable | 35,033 | 40,285 |
State and Political Subdivisions Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 0 |
State and Political Subdivisions Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 0 |
State and Political Subdivisions Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Finance Leases Portfolio Segment [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 549 | 503 |
Loans current | 8,158 | 9,868 |
Loans and leases receivable | 8,707 | 10,371 |
Finance Leases Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 134 | 320 |
Finance Leases Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 133 | 53 |
Finance Leases Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 282 | 130 |
Retail Portfolio Segment [Member] | Consumer Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 28 | 22 |
Loans current | 5,278 | 4,264 |
Loans and leases receivable | 5,306 | 4,286 |
Retail Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 26 | 12 |
Retail Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 2 | 10 |
Retail Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 875 |
Loans current | 46,544 | 41,958 |
Loans and leases receivable | 46,544 | 42,833 |
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 641 |
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 234 |
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Retail Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 227 | 317 |
Loans current | 70,181 | 67,067 |
Loans and leases receivable | 70,408 | 67,384 |
Retail Portfolio Segment [Member] | Home Equity Loan [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 55 | 272 |
Retail Portfolio Segment [Member] | Home Equity Loan [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | 172 | 0 |
Retail Portfolio Segment [Member] | Home Equity Loan [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans past due | $ 0 | $ 45 |
Note 8 - Non-accrual Loans (Det
Note 8 - Non-accrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Financing Receivables Non Accrual Status [Line Items] | ||
Loans receivable | $ 150 | $ 11 |
Loans receivable | 8,237 | 9,420 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||
Financing Receivables Non Accrual Status [Line Items] | ||
Loans receivable | 0 | 0 |
Loans receivable | 2,908 | 3,433 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivables Non Accrual Status [Line Items] | ||
Loans receivable | 0 | 0 |
Loans receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | ||
Financing Receivables Non Accrual Status [Line Items] | ||
Loans receivable | 0 | 0 |
Loans receivable | 3,319 | 3,627 |
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | ||
Financing Receivables Non Accrual Status [Line Items] | ||
Loans receivable | 0 | 0 |
Loans receivable | 1,417 | 1,803 |
State and Political Subdivisions Portfolio Segment [Member] | ||
Financing Receivables Non Accrual Status [Line Items] | ||
Loans receivable | 0 | 0 |
Loans receivable | 0 | 0 |
Finance Leases Portfolio Segment [Member] | ||
Financing Receivables Non Accrual Status [Line Items] | ||
Loans receivable | 150 | 11 |
Loans receivable | 132 | 143 |
Retail Portfolio Segment [Member] | Consumer Loans [Member] | ||
Financing Receivables Non Accrual Status [Line Items] | ||
Loans receivable | 0 | 0 |
Loans receivable | 95 | 0 |
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | ||
Financing Receivables Non Accrual Status [Line Items] | ||
Loans receivable | 0 | 0 |
Loans receivable | 270 | 287 |
Retail Portfolio Segment [Member] | Home Equity Loan [Member] | ||
Financing Receivables Non Accrual Status [Line Items] | ||
Loans receivable | 0 | 0 |
Loans receivable | $ 96 | $ 127 |
Note 8 - Allowance for Loan Los
Note 8 - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of period | $ 7,550 | $ 7,655 | $ 7,554 | $ 8,001 |
Provision for (credit to) loan losses | 0 | 0 | 125 | 60 |
Charge-offs | (29) | (21) | (274) | (502) |
Recoveries | 72 | 35 | 188 | 110 |
Allowance for loan losses, end of period | 7,593 | 7,669 | 7,593 | 7,669 |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of period | 1,350 | 1,603 | 1,521 | 1,892 |
Provision for (credit to) loan losses | (55) | (79) | (105) | (357) |
Charge-offs | 0 | 0 | (140) | (30) |
Recoveries | 9 | 11 | 28 | 30 |
Allowance for loan losses, end of period | 1,304 | 1,535 | 1,304 | 1,535 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of period | 429 | 149 | 286 | 297 |
Provision for (credit to) loan losses | (79) | 118 | 64 | (30) |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Allowance for loan losses, end of period | 350 | 267 | 350 | 267 |
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of period | 2,231 | 2,655 | 2,411 | 2,700 |
Provision for (credit to) loan losses | 233 | (494) | 49 | (458) |
Charge-offs | 0 | 0 | (85) | |
Recoveries | 2 | 3 | 6 | 7 |
Allowance for loan losses, end of period | 2,466 | 2,164 | 2,466 | 2,164 |
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of period | 1,550 | 1,635 | 1,812 | 1,630 |
Provision for (credit to) loan losses | (57) | (53) | (359) | 251 |
Charge-offs | 0 | (4) | (20) | (321) |
Recoveries | 50 | 2 | 110 | 20 |
Allowance for loan losses, end of period | 1,543 | 1,580 | 1,543 | 1,580 |
State and Political Subdivisions Portfolio Segment [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of period | 204 | 232 | 222 | 221 |
Provision for (credit to) loan losses | (64) | (4) | (82) | 7 |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Allowance for loan losses, end of period | 140 | 228 | 140 | 228 |
Finance Leases Portfolio Segment [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of period | 226 | 121 | 164 | 93 |
Provision for (credit to) loan losses | (6) | (4) | 99 | 22 |
Charge-offs | 0 | 0 | (52) | (8) |
Recoveries | 0 | 5 | 9 | 15 |
Allowance for loan losses, end of period | 220 | 122 | 220 | 122 |
Retail Portfolio Segment [Member] | Consumer Loans [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of period | 73 | 71 | 76 | 85 |
Provision for (credit to) loan losses | 33 | 18 | 49 | 33 |
Charge-offs | (29) | (17) | (62) | (58) |
Recoveries | 7 | 10 | 21 | 22 |
Allowance for loan losses, end of period | 84 | 82 | 84 | 82 |
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of period | 298 | 313 | 350 | 312 |
Provision for (credit to) loan losses | (20) | (7) | (72) | (6) |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Allowance for loan losses, end of period | 278 | 306 | 278 | 306 |
Retail Portfolio Segment [Member] | Home Equity Loan [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of period | 343 | 474 | 428 | 453 |
Provision for (credit to) loan losses | (7) | (28) | (102) | (19) |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 4 | 4 | 14 | 16 |
Allowance for loan losses, end of period | 340 | 450 | 340 | 450 |
Unallocated Financing Receivables [Member] | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, beginning of period | 846 | 402 | 284 | 318 |
Provision for (credit to) loan losses | 22 | 533 | 584 | 617 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Allowance for loan losses, end of period | $ 868 | $ 935 | $ 868 | $ 935 |
Note 8 - Specific Reserve for L
Note 8 - Specific Reserve for Loans Modified as TDR's (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
TDRs with no specific allowance recorded - unpaid principal balance | $ 2,860 | $ 1,787 |
TDRs with an allowance recorded - unpaid principal balance | 568 | 491 |
Unpaid principal balance | 3,428 | 2,278 |
TDRs with an allowance recorded - related allowance | $ 388 | $ 491 |
Note 8 - Loans by Loan Class Mo
Note 8 - Loans by Loan Class Modified as TDRs (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)contract | Sep. 30, 2015USD ($)contract | Sep. 30, 2016USD ($)contract | Sep. 30, 2015USD ($)contract | |
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | contract | 1 | 1 | 11 | 1 |
Pre-modification outstanding recorded investment | $ 96 | $ 142 | $ 1,694 | $ 142 |
Post-modification outstanding recorded investment | $ 95 | $ 142 | $ 1,631 | $ 142 |
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | contract | 1 | 1 | ||
Pre-modification outstanding recorded investment | $ 142 | $ 142 | ||
Post-modification outstanding recorded investment | $ 142 | $ 142 | ||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | contract | 6 | |||
Pre-modification outstanding recorded investment | $ 1,074 | |||
Post-modification outstanding recorded investment | $ 1,033 | |||
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | contract | 4 | |||
Pre-modification outstanding recorded investment | $ 524 | |||
Post-modification outstanding recorded investment | $ 503 | |||
Consumer [Member] | Retail Portfolio Segment [Member] | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | contract | 1 | 1 | ||
Pre-modification outstanding recorded investment | $ 96 | $ 96 | ||
Post-modification outstanding recorded investment | $ 95 | $ 95 |
Note 8 - Loans Disaggregated by
Note 8 - Loans Disaggregated by Impairment Method (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items] | ||||||
Allowance for loan losses | $ 7,593 | $ 7,550 | $ 7,554 | $ 7,669 | $ 7,655 | $ 8,001 |
Allowance for loan losses - individually evaluated for impairment | 717 | 974 | ||||
Allowance for loan losses - collectively evaluated for impairment | 6,008 | 6,296 | ||||
Loans and leases receivable | 608,124 | 615,263 | ||||
Loans - individually evaluated for impairment | 12,773 | 14,941 | ||||
Loans - collectively evaluated for impairment | 595,351 | 600,322 | ||||
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | ||||||
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items] | ||||||
Allowance for loan losses | 1,304 | 1,350 | 1,521 | 1,535 | 1,603 | 1,892 |
Allowance for loan losses - individually evaluated for impairment | 462 | 712 | ||||
Allowance for loan losses - collectively evaluated for impairment | 842 | 809 | ||||
Loans and leases receivable | 110,892 | 124,397 | ||||
Loans - individually evaluated for impairment | 3,820 | 4,586 | ||||
Loans - collectively evaluated for impairment | 107,072 | 119,811 | ||||
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||||
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items] | ||||||
Allowance for loan losses | 350 | 429 | 286 | 267 | 149 | 297 |
Allowance for loan losses - individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses - collectively evaluated for impairment | 350 | 286 | ||||
Loans and leases receivable | 32,133 | 27,372 | ||||
Loans - individually evaluated for impairment | 280 | 364 | ||||
Loans - collectively evaluated for impairment | 31,853 | 27,008 | ||||
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | ||||||
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items] | ||||||
Allowance for loan losses | 2,466 | 2,231 | 2,411 | 2,164 | 2,655 | 2,700 |
Allowance for loan losses - individually evaluated for impairment | 0 | 14 | ||||
Allowance for loan losses - collectively evaluated for impairment | 2,466 | 2,397 | ||||
Loans and leases receivable | 233,430 | 235,171 | ||||
Loans - individually evaluated for impairment | 6,050 | 6,998 | ||||
Loans - collectively evaluated for impairment | 227,380 | 228,173 | ||||
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | ||||||
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items] | ||||||
Allowance for loan losses | 1,543 | 1,550 | 1,812 | 1,580 | 1,635 | 1,630 |
Allowance for loan losses - individually evaluated for impairment | 189 | 203 | ||||
Allowance for loan losses - collectively evaluated for impairment | 1,354 | 1,609 | ||||
Loans and leases receivable | 65,671 | 63,164 | ||||
Loans - individually evaluated for impairment | 1,716 | 2,113 | ||||
Loans - collectively evaluated for impairment | 63,955 | 61,051 | ||||
State and Political Subdivisions Portfolio Segment [Member] | ||||||
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items] | ||||||
Allowance for loan losses | 140 | 204 | 222 | 228 | 232 | 221 |
Allowance for loan losses - individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses - collectively evaluated for impairment | 140 | 222 | ||||
Loans and leases receivable | 35,033 | 40,285 | ||||
Loans - individually evaluated for impairment | 0 | 0 | ||||
Loans - collectively evaluated for impairment | 35,033 | 40,285 | ||||
Finance Leases Portfolio Segment [Member] | ||||||
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items] | ||||||
Allowance for loan losses | 220 | 226 | 164 | 122 | 121 | 93 |
Allowance for loan losses - individually evaluated for impairment | 55 | 20 | ||||
Allowance for loan losses - collectively evaluated for impairment | 165 | 144 | ||||
Loans and leases receivable | 8,707 | 10,371 | ||||
Loans - individually evaluated for impairment | 132 | 146 | ||||
Loans - collectively evaluated for impairment | 8,575 | 10,225 | ||||
Retail Portfolio Segment [Member] | Consumer Loans [Member] | ||||||
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items] | ||||||
Allowance for loan losses | 84 | 73 | 76 | 82 | 71 | 85 |
Allowance for loan losses - individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses - collectively evaluated for impairment | 84 | 76 | ||||
Loans and leases receivable | 5,306 | 4,286 | ||||
Loans - individually evaluated for impairment | 95 | |||||
Loans - collectively evaluated for impairment | 5,211 | 4,286 | ||||
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | ||||||
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items] | ||||||
Allowance for loan losses | 278 | 298 | 350 | 306 | 313 | 312 |
Allowance for loan losses - individually evaluated for impairment | 11 | 25 | ||||
Allowance for loan losses - collectively evaluated for impairment | 267 | 325 | ||||
Loans and leases receivable | 46,544 | 42,833 | ||||
Loans - individually evaluated for impairment | 561 | 583 | ||||
Loans - collectively evaluated for impairment | 45,983 | 42,250 | ||||
Retail Portfolio Segment [Member] | Home Equity Loan [Member] | ||||||
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items] | ||||||
Allowance for loan losses | 340 | 343 | 428 | 450 | 474 | 453 |
Allowance for loan losses - individually evaluated for impairment | 0 | |||||
Allowance for loan losses - collectively evaluated for impairment | 340 | 428 | ||||
Loans and leases receivable | 70,408 | 67,384 | ||||
Loans - individually evaluated for impairment | 119 | 151 | ||||
Loans - collectively evaluated for impairment | 70,289 | 67,233 | ||||
Unallocated Financing Receivables [Member] | ||||||
Credit Losses Related To Financing Receivables Current And Noncurrent [Line Items] | ||||||
Allowance for loan losses | $ 868 | $ 846 | $ 284 | $ 935 | $ 402 | $ 318 |
Note 8 - Impaired Loans (Detail
Note 8 - Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Financing Receivable Impaired [Line Items] | |||
Recorded investment - with no specific allowance | $ 11,010 | $ 12,414 | |
Unpaid principal balance - with no specific allowance | 11,796 | 13,966 | |
Recorded investment - with an allowance | 1,763 | 2,527 | |
Unpaid principal balance - with an allowance | 2,061 | 2,773 | |
Related allowance | 717 | 974 | |
Unpaid principal balance | 13,857 | 16,739 | |
Recorded investment | 12,773 | 14,941 | |
Average recorded investment | 13,802 | $ 16,684 | |
Interest income recognized | 185 | 297 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment - with no specific allowance | 3,167 | 3,629 | |
Unpaid principal balance - with no specific allowance | 3,531 | 3,923 | |
Recorded investment - with an allowance | 653 | 957 | |
Unpaid principal balance - with an allowance | 804 | 1,086 | |
Related allowance | 462 | 712 | |
Unpaid principal balance | 4,335 | 5,009 | |
Recorded investment | 3,820 | 4,586 | |
Average recorded investment | 4,288 | 6,301 | |
Interest income recognized | 50 | 154 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment - with no specific allowance | 280 | 364 | |
Unpaid principal balance - with no specific allowance | 301 | 364 | |
Recorded investment - with an allowance | 0 | 0 | |
Unpaid principal balance - with an allowance | 0 | 0 | |
Related allowance | 0 | 0 | |
Unpaid principal balance | 301 | 364 | |
Recorded investment | 280 | 364 | |
Average recorded investment | 412 | 410 | |
Interest income recognized | 15 | 16 | |
Commercial Portfolio Segment [Member] | Secured by Commercial Real Estate [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment - with no specific allowance | 6,050 | 6,932 | |
Unpaid principal balance - with no specific allowance | 6,004 | 7,416 | |
Recorded investment - with an allowance | 0 | 66 | |
Unpaid principal balance - with an allowance | 0 | 66 | |
Related allowance | 0 | 14 | |
Unpaid principal balance | 6,004 | 7,482 | |
Recorded investment | 6,050 | 6,998 | |
Average recorded investment | 6,327 | 7,881 | |
Interest income recognized | 100 | 121 | |
Commercial Portfolio Segment [Member] | Secured by Residential Real Estate [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment - with no specific allowance | 918 | 942 | |
Unpaid principal balance - with no specific allowance | 1,286 | 1,653 | |
Recorded investment - with an allowance | 798 | 1,171 | |
Unpaid principal balance - with an allowance | 929 | 1,279 | |
Related allowance | 189 | 203 | |
Unpaid principal balance | 2,215 | 2,932 | |
Recorded investment | 1,716 | 2,113 | |
Average recorded investment | 1,945 | 1,522 | |
Interest income recognized | 11 | 0 | |
State and Political Subdivisions Portfolio Segment [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment - with no specific allowance | 0 | 0 | |
Unpaid principal balance - with no specific allowance | 0 | 0 | |
Recorded investment - with an allowance | 0 | 0 | |
Unpaid principal balance - with an allowance | 0 | 0 | |
Related allowance | 0 | 0 | |
Unpaid principal balance | 0 | 0 | |
Recorded investment | 0 | 0 | |
Average recorded investment | 0 | 0 | |
Interest income recognized | 0 | 0 | |
Finance Leases Portfolio Segment [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment - with no specific allowance | 3 | ||
Unpaid principal balance - with no specific allowance | 3 | ||
Recorded investment - with an allowance | 132 | 143 | |
Unpaid principal balance - with an allowance | 134 | 145 | |
Related allowance | 55 | 20 | |
Unpaid principal balance | 134 | 148 | |
Recorded investment | 132 | 146 | |
Average recorded investment | 114 | 22 | |
Interest income recognized | 0 | 1 | |
Retail Portfolio Segment [Member] | Consumer Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment - with no specific allowance | 95 | ||
Unpaid principal balance - with no specific allowance | 96 | ||
Recorded investment - with an allowance | 0 | 0 | |
Unpaid principal balance - with an allowance | 0 | 0 | |
Related allowance | 0 | 0 | |
Unpaid principal balance | 96 | 0 | |
Recorded investment | 95 | 0 | |
Average recorded investment | 10 | 3 | |
Interest income recognized | 0 | 0 | |
Retail Portfolio Segment [Member] | Family Residential Mortgages [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment - with no specific allowance | 381 | 393 | |
Unpaid principal balance - with no specific allowance | 398 | 406 | |
Recorded investment - with an allowance | 180 | 190 | |
Unpaid principal balance - with an allowance | 194 | 197 | |
Related allowance | 11 | 25 | |
Unpaid principal balance | 592 | 603 | |
Recorded investment | 561 | 583 | |
Average recorded investment | 572 | 415 | |
Interest income recognized | 8 | 4 | |
Retail Portfolio Segment [Member] | Home Equity Loan [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Recorded investment - with no specific allowance | 119 | 151 | |
Unpaid principal balance - with no specific allowance | 180 | 201 | |
Recorded investment - with an allowance | 0 | 0 | |
Unpaid principal balance - with an allowance | 0 | 0 | |
Related allowance | 0 | 0 | |
Unpaid principal balance | 180 | 201 | |
Recorded investment | 119 | $ 151 | |
Average recorded investment | 134 | 130 | |
Interest income recognized | $ 1 | $ 1 |
Note 9 - Financial Assets Measu
Note 9 - Financial Assets Measured at Fair Value on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities | $ 4,312 | $ 4,189 |
Investment securities available-for-sale | 368,834 | 361,915 |
Recurring fair value measurements | 373,146 | 366,104 |
Nonrecurring fair value measurements | 1,188 | 1,831 |
Impaired Loans [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Nonrecurring fair value measurements | 1,046 | 1,698 |
Mortgage Servicing Rights [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Nonrecurring fair value measurements | 142 | 133 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 8,065 | 7,234 |
Recurring fair value measurements | 8,065 | 7,234 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities | 4,312 | 4,189 |
Investment securities available-for-sale | 358,494 | 352,028 |
Recurring fair value measurements | 362,806 | 356,217 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,275 | 2,653 |
Recurring fair value measurements | 2,275 | 2,653 |
Nonrecurring fair value measurements | 1,188 | 1,831 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Nonrecurring fair value measurements | 1,046 | 1,698 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Nonrecurring fair value measurements | 142 | 133 |
US Government Agencies Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 65,812 | 61,779 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 65,812 | 61,779 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Trading securities | 4,312 | 4,189 |
Investment securities available-for-sale | 73,560 | 78,954 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 73,560 | 78,954 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 132,746 | 136,681 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 132,746 | 136,681 |
Collateralized Mortgage Obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 79,264 | 65,610 |
Collateralized Mortgage Obligations [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 79,264 | 65,610 |
Pooled Trust Preferred Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,275 | 2,653 |
Pooled Trust Preferred Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 2,275 | 2,653 |
Corporate Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 7,112 | 9,004 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 7,112 | 9,004 |
Equity Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 8,065 | 7,234 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 8,065 | $ 7,234 |
Note 9 - Fair Value Measureme57
Note 9 - Fair Value Measurements and Disclosures (Details Textual) | 9 Months Ended | |
Sep. 30, 2016USD ($)security | Dec. 31, 2015USD ($) | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Loss Severity | 95.00% | |
Minimum Cost Saving for Refinance | 2.00% | |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 1,763,000 | $ 2,527,000 |
Partial Charge-offs [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | $ 0 | $ 145,000 |
Collateralized Debt Obligations [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Number Of Trust Preferred Securities | security | 6 | |
Fair Value, Inputs, Level 3 [Member] | Collateralized Debt Obligations [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Number Of Trust Preferred Securities | security | 6 | |
Maximum [Member] | Collateralized Debt Obligations [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Loss Severity | 100.00% | |
Minimum [Member] | Collateralized Debt Obligations [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value Inputs, Loss Severity | 0.00% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | $ 0 | |
Fair Value Inputs, Loss Severity | 95.00% | |
Minimum Cost Saving for Refinance | 2.00% | |
Debt Instrument, Basis Spread on Variable Rate | 7.79% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 5.03% |
Note 9 - Quantitative Informati
Note 9 - Quantitative Information about Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value measurements | $ 1,188 | $ 1,831 | |
Impaired Loans [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value measurements | 1,046 | 1,698 | |
Mortgage Servicing Rights [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value measurements | 142 | 133 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value measurements | 1,188 | 1,831 | |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value measurements | $ 1,046 | 1,698 | |
Nonrecurring fair value liquidation inputs | [1] | 10.00% | |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Appraisal Valuation Technique [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value measurements | [2] | $ 778 | $ 1,331 |
Nonrecurring fair value liquidation inputs | [1],[2] | 10.00% | 10.00% |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Appraisal Valuation Technique [Member] | Minimum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value range of value inputs | [2],[3] | 20.00% | 15.00% |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Appraisal Valuation Technique [Member] | Maximum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value range of value inputs | [2],[3] | 90.00% | 80.00% |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Commercial Vehicle and Equipment Guides Valuation Technique [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value measurements | [4] | $ 140 | $ 199 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Commercial Vehicle and Equipment Guides Valuation Technique [Member] | Minimum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value range of value inputs | [4] | 0.00% | 0.00% |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Commercial Vehicle and Equipment Guides Valuation Technique [Member] | Maximum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value range of value inputs | [4] | 30.00% | 30.00% |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Market Approach Valuation Technique [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value measurements | [5] | $ 128 | $ 168 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Market Approach Valuation Technique [Member] | Minimum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value range of value inputs | [5] | 20.00% | 25.00% |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Market Approach Valuation Technique [Member] | Maximum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value range of value inputs | [5] | 25.00% | 70.00% |
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value measurements | $ 142 | $ 133 | |
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | Discounted Cash Flow Valuation Technique [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value measurements | $ 142 | $ 133 | |
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | Discounted Cash Flow Valuation Technique [Member] | Minimum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value range of value inputs | 12.00% | 10.00% | |
Nonrecurring fair value expected term | 2 years | 3 years | |
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | Discounted Cash Flow Valuation Technique [Member] | Maximum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Nonrecurring fair value range of value inputs | 14.00% | 12.00% | |
Nonrecurring fair value expected term | 27 years | 28 years | |
[1] | 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. | ||
[2] | 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. | ||
[3] | 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. | ||
[4] | If lendable value (lower than wholesale) is utilized then no additional discounts are taken. If lendable value is not provided then additional discounts are applied. | ||
[5] | Values obtained from financial statements for UCC collateral (fixed assets and inventory) are discounted to estimated realizable liquidation value. |
Note 9 - Available-for-sale Sec
Note 9 - Available-for-sale Securities Measured at Fair Value Using Significant Unobservable Inputs (Details) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | |
Balance, January 1, 2016 | $ 2,653 |
Payments received | (312) |
Included in other comprehensive income | (66) |
Balance, September 30, 2016 | $ 2,275 |
Note 9 - Financial and Off-bala
Note 9 - Financial and Off-balance Sheet Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 69,428 | $ 16,991 | $ 68,450 | $ 16,991 |
Trading | 4,312 | 4,189 | ||
Investment securities available-for-sale | 368,834 | 361,915 | ||
Held-to-maturity | 147 | 147 | ||
Restricted investment in bank stocks | 522 | 508 | ||
Loans held-for-sale | 456 | 987 | ||
Net loans | 600,638 | 607,716 | ||
Mortgage servicing rights | 498 | 504 | ||
Accrued interest receivable | 2,573 | 2,562 | ||
Deposits with no stated maturities | 926,712 | 889,786 | ||
Short-term borrowings | 41,179 | 37,163 | ||
Accrued interest payable | 310 | 330 | ||
Cash and cash equivalents | 69,428 | 16,991 | ||
Held-to-maturity | 147 | 151 | ||
Restricted investment in bank stocks | 522 | 508 | ||
Loans held-for-sale | 466 | 1,004 | ||
Net loans | 610,066 | 610,315 | ||
Mortgage servicing rights | 555 | 642 | ||
Accrued interest receivable | 2,573 | 2,562 | ||
Short-term borrowings | 41,179 | 37,163 | ||
Accrued interest payable | 310 | 330 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Investment securities available-for-sale | 8,065 | 7,234 | ||
Cash and cash equivalents | 69,428 | 16,991 | ||
Short-term borrowings | 41,179 | 37,163 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Trading | 4,312 | 4,189 | ||
Investment securities available-for-sale | 358,494 | 352,028 | ||
Held-to-maturity | 147 | 151 | ||
Restricted investment in bank stocks | 522 | 508 | ||
Loans held-for-sale | 466 | 1,004 | ||
Accrued interest receivable | 2,573 | 2,562 | ||
Accrued interest payable | 310 | 330 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Investment securities available-for-sale | 2,275 | 2,653 | ||
Net loans | 610,066 | 610,315 | ||
Mortgage servicing rights | 555 | 642 | ||
With No Stated Maturities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Deposits with no stated maturities | 698,336 | 662,410 | ||
Deposits with no stated maturities | 698,336 | 662,410 | ||
With No Stated Maturities [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Deposits with no stated maturities | 698,336 | 662,410 | ||
With Stated Maturities [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Deposits with no stated maturities | 228,376 | 227,376 | ||
Deposits with no stated maturities | 230,993 | 227,862 | ||
With Stated Maturities [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Deposits with no stated maturities | $ 230,993 | $ 227,862 |
Note 10 - Financial Instrument
Note 10 - Financial Instrument Commitments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Commitments And Contingencies Disclosure [Line Items] | ||
Commitments to extend credit and unused lines of credit | $ 321,463 | $ 241,985 |
Commitments to Extend Credit [Member] | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Commitments to extend credit and unused lines of credit | 308,483 | 232,492 |
Standby Letters of Credit [Member] | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Commitments to extend credit and unused lines of credit | $ 12,980 | $ 9,493 |
Note 10 - Financial Instrumen62
Note 10 - Financial Instrument Commitments (Details Textual) | 9 Months Ended |
Sep. 30, 2016 | |
Maximum [Member] | |
Commitments And Contingencies Disclosure [Line Items] | |
Standby letters of credit expiration period | 3 years |
Note 11 - Capital Ratios and Re
Note 11 - Capital Ratios and Regulatory Minimum Requirements (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Consolidated Entities [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital | $ 103,357 | $ 98,432 |
Tier 1 capital | 95,704 | 90,819 |
Common equity tier 1 capital | 95,704 | 90,819 |
Tier 1 leverage capital | $ 95,704 | $ 90,819 |
Capital to risk-weighted assets | 13.08% | 12.58% |
Tier 1 capital to risk-weighted assets | 12.11% | 11.60% |
Common equity tier 1 capital to risk-weighted assets | 12.11% | 11.60% |
Tier 1 leverage capital to average assets | 9.08% | 8.87% |
Capital required for capital adequacy | $ 63,207 | $ 62,613 |
Tier 1 capital required for capital adequacy | 47,405 | 46,960 |
Common equity tier 1 capital required for capital adequacy | 35,554 | 35,220 |
Tier 1 leverage capital required for capital adequacy | $ 42,160 | $ 40,934 |
Capital required for capital adequacy to risk-weighted assets | 8.00% | 8.00% |
Tier 1 capital required for capital adequacy to risk-weighted assets | 6.00% | 6.00% |
Common equity tier 1 capital required for capital adequacy to risk-weighted assets | 4.50% | 4.50% |
Tier 1 leverage capital required for capital adequacy to average assets | 4.00% | 4.00% |
Capital required to be well capitalized | $ 79,009 | $ 78,266 |
Tier 1 capital required to be well capitalized | $ 47,405 | $ 46,960 |
Capital required to be well capitalized to risk-weighted assets | 10.00% | 10.00% |
Tier 1 capital required to be well capitalized to risk-weighted assets | 6.00% | 6.00% |
Bank [Member] | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Capital | $ 95,163 | $ 91,091 |
Tier 1 capital | 87,511 | 83,478 |
Common equity tier 1 capital | 87,511 | 83,478 |
Tier 1 leverage capital | $ 87,511 | $ 83,478 |
Capital to risk-weighted assets | 12.43% | 11.97% |
Tier 1 capital to risk-weighted assets | 11.43% | 10.97% |
Common equity tier 1 capital to risk-weighted assets | 11.43% | 10.97% |
Tier 1 leverage capital to average assets | 8.37% | 8.22% |
Capital required for capital adequacy | $ 61,266 | $ 60,874 |
Tier 1 capital required for capital adequacy | 45,950 | 45,656 |
Common equity tier 1 capital required for capital adequacy | 34,462 | 34,242 |
Tier 1 leverage capital required for capital adequacy | $ 41,835 | $ 40,632 |
Capital required for capital adequacy to risk-weighted assets | 8.00% | 8.00% |
Tier 1 capital required for capital adequacy to risk-weighted assets | 6.00% | 6.00% |
Common equity tier 1 capital required for capital adequacy to risk-weighted assets | 4.50% | 4.50% |
Tier 1 leverage capital required for capital adequacy to average assets | 4.00% | 4.00% |
Capital required to be well capitalized | $ 76,583 | $ 76,093 |
Tier 1 capital required to be well capitalized | 61,266 | 60,874 |
Common equity tier 1 capital required to be well capitalized | 49,779 | 49,460 |
Tier 1 leverage capital required to be well capitalized | $ 52,293 | $ 50,790 |
Capital required to be well capitalized to risk-weighted assets | 10.00% | 10.00% |
Tier 1 capital required to be well capitalized to risk-weighted assets | 8.00% | 8.00% |
Common equity tier 1 capital required to be well capitalized to risk-weighted assets | 6.50% | 6.50% |
Tier 1 leverage capital required to be well capitalized to average assets | 5.00% | 5.00% |