Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 11, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SB FINANCIAL GROUP, INC. | |
Entity Central Index Key | 767,405 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,912,289 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 21,709 | $ 28,197 |
Securities available for sale, at fair value | 98,786 | 85,240 |
Other securities - FRB and FHLB Stock | 3,748 | 3,748 |
Total investment securities | 102,534 | 88,988 |
Loans held for sale | 10,067 | 5,168 |
Loans, net of unearned income | 522,403 | 516,336 |
Allowance for loan losses | (7,006) | (6,771) |
Net loans | 515,397 | 509,565 |
Premises and equipment, net | 16,432 | 13,604 |
Cash surrender value of life insurance | 13,291 | 13,148 |
Goodwill | 16,353 | 16,353 |
Core deposits and other intangibles | 174 | 283 |
Foreclosed assets held for sale, net | 180 | 285 |
Mortgage servicing rights | 6,548 | 5,704 |
Accrued interest receivable | 1,506 | 1,346 |
Other assets | 3,017 | 1,587 |
Total assets | 707,208 | 684,228 |
Deposits | ||
Non interest bearing demand | 96,322 | 97,853 |
Interest bearing demand | 127,362 | 121,043 |
Savings | 78,729 | 64,107 |
Money market | 100,315 | 104,602 |
Time deposits | 160,198 | 163,301 |
Total deposits | 562,926 | 550,906 |
Advances from Federal Home Loan Bank | 34,000 | 30,000 |
Repurchase agreements | 15,169 | 12,740 |
Trust preferred securities | 10,310 | 10,310 |
Accrued interest payable | 289 | 264 |
Other liabilities | 6,391 | 4,325 |
Total liabilities | $ 629,085 | $ 608,545 |
Commitments and Contingent Liabilities | ||
Equity | ||
Preferred stock | $ 13,983 | $ 13,983 |
Common stock | 12,569 | 12,569 |
Additional paid-in capital | 15,424 | 15,461 |
Retained earnings | 36,930 | 34,379 |
Accumulated other comprehensive income | 750 | 918 |
Treasury stock | (1,533) | (1,627) |
Total equity | 78,123 | 75,683 |
Total liabilities and equity | $ 707,208 | $ 684,228 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Loans | ||||
Taxable | $ 5,835 | $ 5,654 | $ 11,454 | $ 10,895 |
Nontaxable | 9 | 13 | 15 | 29 |
Securities | ||||
Taxable | 395 | 310 | 767 | 619 |
Nontaxable | 175 | 179 | 352 | 354 |
Total interest income | 6,414 | 6,156 | 12,588 | 11,897 |
Interest expense | ||||
Deposits | 500 | 503 | 995 | 1,001 |
Repurchase Agreements & Other | 4 | 4 | 9 | 15 |
Federal Home Loan Bank advances | 94 | 71 | 186 | 145 |
Trust preferred securities | 53 | 330 | 104 | 663 |
Total interest expense | 651 | 908 | 1,294 | 1,824 |
Net interest income | 5,763 | 5,248 | 11,294 | 10,073 |
Provision for loan losses | 500 | 150 | 850 | 150 |
Net interest income after provision for loan losses | 5,263 | 5,098 | 10,444 | 9,923 |
Noninterest income | ||||
Wealth Management Fees | 666 | 649 | 1,325 | 1,281 |
Customer service fees | 702 | 665 | 1,334 | 1,275 |
Gain on sale of mtg. loans & OMSR's | 1,771 | 1,211 | 3,205 | 1,783 |
Mortgage loan servicing fees, net | 521 | 156 | 545 | 401 |
Gain on sale of non-mortgage loans | 321 | 84 | 575 | 107 |
Data service fees | $ 306 | 322 | $ 623 | 628 |
Net gain on sales of securities | 56 | 56 | ||
Loss on sale/disposal of assets | $ (1) | (15) | $ (20) | (49) |
Other income | 157 | 167 | 452 | 372 |
Total non-interest income | 4,443 | 3,295 | 8,039 | 5,854 |
Noninterest expense | ||||
Salaries and employee benefits | 3,935 | 3,451 | 7,412 | 6,571 |
Net occupancy expense | 480 | 485 | 983 | 1,058 |
Equipment expense | 524 | 645 | 1,089 | 1,284 |
Data processing fees | 247 | 249 | 510 | 460 |
Professional fees | 426 | 465 | 866 | 803 |
Marketing expense | 142 | 170 | 291 | 293 |
Telephone and communication | 98 | 107 | 188 | 219 |
Postage and delivery expense | 201 | 187 | 435 | 391 |
State, local and other taxes | 128 | 95 | 257 | 187 |
Employee expense | 138 | 140 | 291 | 255 |
Intangible amortization expense | 55 | 131 | 109 | 262 |
Other expenses | 444 | 502 | 1,031 | 922 |
Total non-interest expense | 6,818 | 6,627 | 13,462 | 12,705 |
Income before income tax expense | 2,888 | 1,766 | 5,021 | 3,072 |
Income tax expense | 897 | 521 | 1,534 | 847 |
Net income | 1,991 | $ 1,245 | 3,487 | $ 2,225 |
Preferred Stock Dividends | 244 | 469 | ||
Net income available to common shareholders | $ 1,747 | $ 1,245 | $ 3,018 | $ 2,225 |
Common share data: | ||||
Basic earnings per common share | $ 0.36 | $ 0.26 | $ 0.62 | $ 0.46 |
Diluted earnings per common share | $ 0.31 | $ 0.25 | $ 0.54 | $ 0.46 |
Average common shares outstanding ( in thousands): | ||||
Basic: | 4,884 | 4,875 | 4,873 | 4,873 |
Diluted: | 6,382 | 4,893 | 6,381 | 4,894 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 1,991 | $ 1,245 | $ 3,487 | $ 2,225 |
Available-for-sale investment securities: | ||||
Gross unrealized holding (loss) gain arising in the period | (779) | 815 | (255) | 1,320 |
Related tax benefit (expense) | $ 265 | (277) | $ 87 | (449) |
Gross unrealized holding loss arising in the period | (56) | (56) | ||
Related tax benefit | 19 | 19 | ||
Net effect on other comprehensive income (loss) | $ (514) | 501 | $ (168) | 834 |
Total comprehensive income | $ 1,477 | $ 1,746 | $ 3,319 | $ 3,059 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance at Dec. 31, 2013 | $ 56,269 | $ 12,569 | $ 15,412 | $ 29,899 | $ 74 | $ (1,685) | |
Net Income | 2,225 | 2,225 | |||||
Other comprehensive income: | 834 | 834 | |||||
Dividends on common stk., $0.095 and $0.075 per share | $ (367) | (367) | |||||
Dividends on preferred stk., $0.312 per share | |||||||
Restricted stock vesting | $ 33 | 33 | |||||
Exercise of stock options | (16) | (41) | 25 | ||||
Share based compensation expense | 32 | 32 | |||||
Balance at Jun. 30, 2014 | 59,010 | 12,569 | 15,403 | 31,757 | 908 | (1,627) | |
Beginning Balance at Dec. 31, 2014 | 75,683 | $ 13,983 | 12,569 | 15,461 | 34,379 | 918 | (1,627) |
Net Income | 3,487 | 3,487 | |||||
Other comprehensive income: | (168) | (168) | |||||
Dividends on common stk., $0.095 and $0.075 per share | (467) | (467) | |||||
Dividends on preferred stk., $0.312 per share | $ (469) | (469) | |||||
Restricted stock vesting | (69) | (69) | |||||
Exercise of stock options | $ 18 | (9) | 27 | ||||
Stock buy back | (2) | (2) | |||||
Share based compensation expense | 41 | 41 | |||||
Balance at Jun. 30, 2015 | $ 78,123 | $ 13,983 | $ 12,569 | $ 15,424 | $ 36,930 | $ 750 | $ (1,533) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividend common stock, per share amount | $ 0.095 | $ 0.075 |
Dividend preferred stock, per share amount | $ 0.312 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Activities | ||
Net Income | $ 3,487 | $ 2,225 |
Items (using)/providing cash | ||
Depreciation and amortization | 547 | 571 |
Provision for loan losses | 850 | 150 |
Expense of share-based compensation plan | 41 | 32 |
Amortization of premiums and discounts on securities | 499 | 481 |
Amortization of intangible assets | 109 | 262 |
Amortization of originated mortgage servicing rights | 501 | $ 117 |
Recapture of originated mortgage servicing rights impairment | (269) | |
Impairment of mortgage servicing rights | 80 | $ 101 |
Proceeds from sale of loans held for sale | 150,977 | 100,276 |
Originations of loans held for sale | (146,906) | (100,165) |
Gain from sale of loans | (3,780) | (1,890) |
Loss on sale of assets | 20 | 52 |
Changes in | ||
Interest receivable | (160) | (175) |
Other assets | (7,804) | (4,134) |
Interest payable and other liabilities | 2,066 | (156) |
Net cash provided by (used in) operating activities | 258 | (2,253) |
Investing Activities | ||
Purchases of available-for-sale securities | (25,456) | (9,685) |
Proceeds from maturities of available-for-sale securities | $ 11,155 | 10,377 |
Proceeds from sales of available-for-sale-securities | 4,298 | |
Net change in loans | $ (6,709) | (29,522) |
Purchase of premises and equipment and software | (3,411) | $ (1,255) |
Proceeds from sales or disposal of premises and equipment | 36 | |
Proceeds from sale of foreclosed assets | 110 | $ 238 |
Net cash used in investing activities | (24,275) | (25,549) |
Financing Activities | ||
Net increase in demand deposits, money market, interest checking and savings accounts | 15,123 | 5,283 |
Net (decrease) increase in certificates of deposit | (3,103) | 550 |
Net increase in securities sold under agreements to repurchase | $ 2,429 | 2,550 |
Repayment of Federal Home Loan Bank advances | (2,000) | |
Proceeds from Federal Home Loan Bank advances | $ 4,000 | 23,000 |
Proceeds from stock options exercised | 18 | $ 16 |
Repurchase of Common Stock | (2) | |
Dividends on Common Stock | (467) | $ (367) |
Dividends on Preferred Stock | $ (469) | |
Repayment of notes payable | $ (589) | |
Net cash provided by financing activities | $ 17,529 | 28,443 |
(Decrease) Increase in Cash and Cash Equivalents | (6,488) | 641 |
Cash and Cash Equivalents, Beginning of Year | 28,197 | 13,137 |
Cash and Cash Equivalents, End of Period | 21,709 | 13,778 |
Supplemental Cash Flows Information | ||
Interest paid | 1,269 | 1,808 |
Income taxes paid | 1,060 | 780 |
Transfer of loans to foreclosed assets | $ 27 | $ 153 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation [Abstract] | |
BASIS OF PRESENTATION | NOTE 1 – BASIS OF PRESENTATION SB Financial Group, Inc., an Ohio corporation (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiaries, The State Bank and Trust Company (“State Bank”), RFCBC, Inc. (“RFCBC”), Rurbanc Data Services, Inc. dba RDSI Banking Systems (“RDSI”), and Rurban Statutory Trust II (“RST II”). In addition, State Bank owns all of the outstanding stock of Rurban Mortgage Company (“RMC”) and State Bank Insurance, LLC (“SBI”). The consolidated financial statements include the accounts of the Company, State Bank, RFCBC, RDSI, RMC, and SBI. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The financial statements reflect all adjustments that are, in the opinion of management, necessary to fairly present the financial position, results of operations and cash flows of the Company. Those adjustments consist only of normal recurring adjustments. Results of operations for the six months ended June 30, 2015, are not necessarily indicative of results for the complete year. The condensed consolidated balance sheet of the Company as of December 31, 2014 has been derived from the audited consolidated balance sheet of the Company as of that date. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The following paragraphs summarize the impact of new accounting pronouncements: Accounting Standards Update (ASU) No. 2015-05: Intangibles – Goodwill and Other (Subtopic 310-40, Software) The ASU provides guidance for the customer’s accounting treatment for fees paid in a cloud computing arrangement. Existing generally accepted accounting principles (GAAP) does not include explicit guidance regarding this topic. Specifically the ASU indicates how to handle cloud computing arrangements when a software license does and does not exist as part of the arrangement. The amendments in this update are effective for reporting periods beginning after December 15, 2015 and management does not believe this update will have a material impact on the Company’s consolidated financial statements. ASU No. 2015-03 (Sub Topic 835-30): Interest – Simplifying the Presentation of Debt Issuance Costs This ASU simplifies the presentation of debt issuance costs, with the amendments in this Update requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The amendments in this update are effective for reporting periods beginning after December 15, 2015 and management does not believe this update will have a material impact on the Company’s consolidated financial statements. ASU No. 2015-02, Consolidation (Topic 810): This ASU changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Management does not believe that the implementation of this update will have a material impact on the Company’s consolidated financial statements. ASU No. 2015-01, Extraordinary and Unusual Income Statement Items (Sub Topic 225-20): Simplifying Income Statement Presentation by Elimination of Extraordinary Items This ASU eliminates from GAAP the concept of extraordinary items. Included is the following criteria that must be met for extraordinary classification: 1. Unusual nature – a high degree of abnormality. 2. Infrequency of occurrence – not reasonably expected to recur. Management does not believe that the implementation of this update will have a material impact on the Company’s consolidated financial statements. ASU No. 2014-17, Business Combinations (Topic 805): Pushdown Accounting. This ASU provides guidance on whether and at what threshold an acquired entity that is a business or nonprofit activity can apply pushdown accounting in its separate financial statements. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. Management does not believe the amendments will have a material impact on the Company’s consolidated financial statements. ASU No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract is more Akin to Debt or to Equity. This ASU provides guidance for an entity when hybrid financial instruments are issued in the form of a share. The entity should determine the nature of the host contract by considering the economic characteristics and risks of the entire financial instrument. The determination of these host characteristics may meet the definition of a derivative financial instrument. Management does not believe the amendments will have a material impact on the Company’s consolidated financial statements. ASU No. 2014-15, Presentation of Financial Statements – Going Concern (Sub Topic 205-40. This ASU provides guidance in GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. In doing so, the amendments should reduce diversity in the timing and content of footnote disclosures. Management does not believe the amendments will have a material impact on the Company’s consolidated financial statements. ASU No. 2014-12 (Topic 718): Compensation – Stock Compensation The ASU provides guidance for the accounting treatment of share-based payments when the terms provide that a performance target could be achieved after the service period. The treatment requires that the target achievement after the service period be treated as a performance condition. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. Management does not believe this update will have a material impact on the Company’s consolidated financial statements. ASU No. 2014-09 (Topic 606): Revenue from Contracts with Customers The ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets unless those contracts are within the scope of other standards. The core principle is that an entity should recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Management does not believe that the implementation of this update will have a material impact on the Company’s consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 2 – EARNINGS PER SHARE Earnings per share (EPS) have been computed based on the weighted average number of common shares outstanding during the periods presented. For the period ended June 30, 2015, share-based awards totaling 50,424 common shares were not considered in computing diluted EPS as they were anti-dilutive. For the period ended June 30, 2014, share-based awards totaling 66,570 common shares were not considered in computing diluted EPS as they were anti-dilutive. Included in the diluted EPS for June 30, 2015 are the impact of the full conversion of the Company’s depository shares issued in December of 2014. Based upon the current conversion ratio, the 1,500,000 outstanding depository shares are convertible into an aggregate of 1,450,677 common shares. The average number of common shares used in the computation of basic and diluted earnings per share were: Three Months Ended Six Months End (shares in thousands) June 30, June 30, 2015 2014 2015 2014 Basic earnings per share 4,884 4,874 4,882 4,873 Diluted earnings per share 6,382 4,893 6,381 4,894 |
Securities
Securities | 6 Months Ended |
Jun. 30, 2015 | |
Securities [Abstract] | |
SECURITIES | NOTE 3 – SECURITIES The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of securities at June 30, 2015 and December 31, 2014 were as follows: Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: June 30, 2015 U.S. Treasury and Government agencies $ 11,568 $ 148 $ - $ 11,716 Mortgage-backed securities 68,442 546 (384 ) 68,604 State and political subdivisions 17,616 841 (14 ) 18,443 Equity securities 23 - - 23 $ 97,649 $ 1,535 $ (398 ) $ 98,786 Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: December 31, 2014: U.S. Treasury and Government agencies $ 15,187 $ 124 $ (4 ) $ 15,307 Mortgage-backed securities 50,563 462 (285 ) 50,740 State and political subdivisions 18,075 1,095 - 19,170 Equity securities 23 - - 23 $ 83,848 $ 1,681 $ (289 ) $ 85,240 The amortized cost and fair value of securities available for sale at June 30, 2015, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Amortized Fair ($ in thousands) Cost Value Within one year $ 1,130 $ 1,153 Due after one year through five years 2,283 2,385 Due after five years through ten years 5,302 5,529 Due after ten years 20,469 21,092 29,184 30,159 Mortgage-backed securities & equity securities 68,465 68,627 Totals $ 97,649 $ 98,786 The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $69.8 million at June 30, 2015 and $44.5 million at December 31, 2014. The fair value of securities delivered for repurchase agreements was $18.6 million at June 30, 2015 and $16.5 million at December 31, 2014. There were no realized gains and losses from sales of available-for-sale securities for the six months ended June 30, 2015. For the six month period ending June 30, 2014, there were gross gains of $0.06 million resulting from sales of available-for-sale securities, which is a reclassification from accumulated other comprehensive income (OCI) and is included in the net gain on sales of securities. The related $0.02 million in tax expense is a reclassification from OCI and is included in the income tax expense line item in the income statement. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments was $32.1 million at June 30, 2015, and $29.0 million at December 31, 2014, which was approximately 32.5 and 34.0 percent, respectively, of the Company’s available-for-sale investment portfolio at such dates. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. Securities with unrealized losses, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2015 and December 31, 2014 are as follows: ($ in thousands) Less than 12 Months 12 Months or Longer Total June 30, 2015 Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Securities: Mortgage-backed securities $ 24,847 $ (219 ) $ 5,898 $ (165 ) $ 30,745 $ (384 ) State and political subdivisions 1,345 (14 ) - - 1,345 (14 ) $ 26,192 $ (233 ) $ 5,898 $ (165 ) $ 32,090 $ (398 ) ($ in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2014 Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Securities: U.S. Treasury and Government agencies $ 1,387 $ (4 ) $ - $ - $ 1,387 $ (4 ) Mortgage-backed securities 20,491 (73 ) 7,073 (212 ) 27,564 (285 ) $ 21,878 $ (77 ) $ 7,073 $ (212 ) $ 28,951 $ (289 ) The total potential unrealized loss as of June 30, 2015 in the securities portfolio was $0.39 million, which was up from the $0.29 million unrealized loss at December 31, 2014. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent of the Company to not sell the investment and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost. Management has determined there is no other-than-temporary-impairment on these securities. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Loans and Allowance For Loan Losses [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | NOTE 4 – LOANS AND ALLOWANCE FOR LOAN LOSSES Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoffs, are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. Generally, all loan classes are placed on non-accrual status not later than 90 days past due, unless the loan is well-secured and in the process of collection. All interest accrued, but not collected, for loans that are placed on non-accrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the non-collectability of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as new information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected on the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that State Bank 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 each 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, agricultural, and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. When State Bank moves a loan to non-accrual status, total unpaid interest accrued to date is reversed from income. Subsequent payments are applied to the outstanding principal balance with the interest portion of the payment recorded on the balance sheet as a contra-loan. Interest received on impaired loans may be realized once all contractual principal amounts are received or when a borrower establishes a history of six consecutive timely principal and interest payments. It is at the discretion of management to determine when a loan is placed back on accrual status upon receipt of six consecutive timely payments. Large groups of smaller balance homogenous loans are collectively evaluated for impairment. Accordingly, State Bank does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. Categories of loans at June 30, 2015 and December 31, 2014 include: ($ in thousands) Total Loans Non-Accrual Loans Jun. 2015 Dec. 2014 Jun. 2015 Dec. 2014 Commercial & Industrial $ 84,305 $ 88,485 $ 702 $ 1,387 Commercial RE & Construction 223,994 217,030 2,023 2,092 Agricultural & Farmland 45,724 46,217 - - Residential Real Estate 116,944 113,214 772 992 Consumer & Other 51,444 51,546 112 138 Total Loans $ 522,411 $ 516,492 $ 3,609 $ 4,609 Unearned Income $ (8 ) $ (156 ) Total Loans, net of unearned income $ 522,403 $ 516,336 Allowance for loan losses $ (7,006 ) $ (6,771 ) The following tables present the activity in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2015, December 31, 2014 and June 30, 2014. Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended June 30, 2015 Beginning balance $ 1,574 $ 2,892 $ 212 $ 1,318 $ 834 $ 6,830 Charge Offs (300 ) - - (48 ) (2 ) $ (350 ) Recoveries 15 3 1 3 4 26 Provision 199 171 48 137 (55 ) 500 Ending Balance $ 1,488 $ 3,066 $ 261 $ 1,410 $ 781 $ 7,006 ALLOWANCE FOR LOAN AND LEASE LOSSES For the Six Months Ended June 30, 2015 Beginning balance $ 1,630 $ 2,857 $ 208 $ 1,308 $ 768 $ 6,771 Charge Offs (309 ) (250 ) - (61 ) (32 ) $ (653 ) Recoveries 21 3 2 5 6 37 Provision 146 456 51 158 39 850 Ending Balance $ 1,488 $ 3,066 $ 261 $ 1,410 $ 781 $ 7,006 Loans Receivable at June 30, 2015 Allowance: Ending balance: individually evaluated for impairment $ 404 $ 802 $ - $ 165 $ 39 $ 1,410 Ending balance: collectively evaluated for impairment $ 1,084 $ 2,264 $ 261 $ 1,245 $ 742 $ 5,596 Loans: Ending balance: individually evaluated for impairment $ 568 $ 2,229 $ - $ 1,586 $ 463 $ 4,846 Ending balance: collectively evaluated for impairment $ 83,737 $ 221,765 $ 45,724 $ 115,358 $ 50,981 $ 517,565 Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total Loans Receivable at December 31, 2014 Allowance: Ending balance: individually evaluated for impairment $ 510 $ 1,018 $ - $ 242 $ 41 $ 1,811 Ending balance: collectively evaluated for impairment $ 1,120 $ 1,839 $ 208 $ 1,066 $ 727 $ 4,960 Loans: Ending balance: individually evaluated for impairment $ 1,268 $ 2,035 $ - $ 1,647 $ 481 $ 5,431 Ending balance: collectively evaluated for impairment $ 87,217 $ 214,995 $ 46,217 $ 111,567 $ 51,065 $ 511,061 For the Three Months Ended Commercial & Commercial RE & Construction Agricultural & Farmland Residential Real Estate Consumer & Other Total ($'s in thousands) ALLOWANCE FOR LOAN AND LEASE LOSSES Beginning balance $ 1,902 $ 2,751 $ 177 $ 1,161 $ 735 $ 6,726 Charge Offs (300 ) (1 ) - - (29 ) $ (330 ) Recoveries 2 8 1 9 2 22 Provision 56 (101 ) 16 96 83 150 Ending Balance $ 1,660 $ 2,657 $ 194 $ 1,266 $ 791 $ 6,568 For the Six Months Ended Commercial & Commercial RE & Construction Agricultural & Farmland Residential Real Estate Consumer & Other Total ($'s in thousands) ALLOWANCE FOR LOAN AND LEASE LOSSES Beginning balance $ 2,175 $ 2,708 $ 159 $ 1,067 $ 855 $ 6,964 Charge Offs (607 ) (1 ) - (15 ) (30 ) $ (653 ) Recoveries 12 60 1 14 20 107 Provision 80 (110 ) 34 200 (54 ) 150 Ending Balance $ 1,660 $ 2,657 $ 194 $ 1,266 $ 791 $ 6,568 The risk characteristics of each loan portfolio segment are as follows: Commercial and Agricultural Commercial and agricultural loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial Real Estate including Construction Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus non-owner-occupied loans. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews and financial analysis of the developers and property owners. Construction loans are generally based on estimates of costs and value associated with the completed project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. Residential and Consumer Residential and consumer loans consist of two segments – residential mortgage loans and personal loans. Residential mortgage loans are secured by 1-4 family residences and are generally owner-occupied, and the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that these loans are of smaller individual amounts and spread over a large number of borrowers. The following tables present the credit risk profile of the Company’s loan portfolio based on rating category and payment activity as of June 30, 2015 and December 31, 2014. June 30, 2015 Commercial & Industrial Commercial RE & Construction Agricultural & Farmland Residential Real Estate Consumer & Total ($ in thousands) 1-2 $ 846 $ 59 $ 56 $ - $ 5 $ 966 3 23,690 64,570 8,631 107,788 47,710 252,389 4 58,732 146,797 37,037 6,730 3,459 252,755 Total Pass (1 - 4) 83,268 211,426 45,724 114,518 51,174 506,110 Special Mention (5) 318 6,505 - 1,180 75 8,078 Substandard (6) 75 4,008 - 474 83 4,640 Doubtful (7) 644 2,055 - 772 112 3,583 Loss (8) - - - - - - Total Loans $ 84,305 $ 223,994 $ 45,724 $ 116,944 $ 51,444 $ 522,411 December 31, 2014 Commercial & Industrial Commercial RE & Construction Agricultural & Farmland Residential Real Estate Consumer & Other Total ($ in thousands) 1-2 $ 1,148 $ 66 $ 61 $ - $ - $ 1,275 3 23,580 67,779 9,505 105,149 47,795 253,808 4 61,691 136,427 36,651 5,611 3,465 243,845 Total Pass (1 - 4) 86,419 204,272 46,217 110,760 51,260 498,928 Special Mention (5) 83 6,224 - 1,160 84 7,551 Substandard (6) 752 4,422 - 312 55 5,541 Doubtful (7) 1,231 2,112 - 982 147 4,472 Loss (8) - - - - - - Total Loans $ 88,485 $ 217,030 $ 46,217 $ 113,214 $ 51,546 $ 516,492 The Company evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis. Credit Risk Profile The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with an outstanding balance greater than $100 thousand and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Pass (grades 1 – 4): Special Mention (5): Substandard (6): Doubtful (7): Loss (8): The following tables present the Company’s loan portfolio aging analysis as of June 30, 2015 and December 31, 2014. June 30, 2015 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivable ($ in thousands) Commercial & Industrial $ - $ - $ 702 $ 702 $ 83,603 $ 84,305 Commercial RE & Construction - 3,566 1,908 5,474 218,520 223,994 Agricultural & Farmland - - - - 45,724 45,724 Residential Real Estate 10 118 273 401 116,543 116,944 Consumer & Other 19 - 4 23 51,421 51,444 Total Loans $ 29 $ 3,684 $ 2,887 $ 6,600 $ 515,811 $ 522,411 December 31, 2014 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivable ($ in thousands) Commercial & Industrial $ - $ - $ 987 $ 987 $ 87,498 $ 88,485 Commercial RE & Construction 3,660 - 1,747 5,407 211,623 217,030 Agricultural & Farmland - - - - 46,217 46,217 Residential Real Estate 164 19 377 560 112,654 113,214 Consumer & Other 39 81 - 120 51,426 51,546 Total Loans $ 3,863 $ 100 $ 3,111 $ 7,074 $ 509,418 $ 516,492 All loans past due 90 days are systematically placed on nonaccrual status. A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable State Bank will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The following tables present impaired loan information as of and for the six months ended June 30, 2015 and 2014, and for the twelve months ended December 31, 2014: Six Months Ended June 30, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($'s in thousands) With no related allowance recorded: Commercial & Industrial $ 316 $ 316 $ - $ 316 $ - Commercial RE & Construction 1,032 1,032 - 1,089 19 Agricultural & Farmland - - - - - Residential Real Estate 593 636 - 767 26 Consumer & Other 99 99 - 112 4 All Impaired Loans < $100,000 334 334 - 334 - With a specific allowance recorded: Commercial & Industrial 252 1,152 404 1,152 - Commercial RE & Construction 1,197 1,447 802 1,448 1 Agricultural & Farmland - - - - - Residential Real Estate 993 993 165 1,050 22 Consumer & Other 364 364 39 391 12 Totals: Commercial & Industrial $ 568 $ 1,468 $ 404 $ 1,468 $ - Commercial RE & Construction $ 2,229 $ 2,479 $ 802 $ 2,537 $ 20 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,586 $ 1,629 $ 165 $ 1,817 $ 48 Consumer & Other $ 463 $ 463 $ 39 $ 503 $ 16 All Impaired Loans < $100,000 $ 334 $ 334 $ - $ 334 $ - Three Months Ended June 30, 2015 Average Recorded Investment Interest Income Recognized With no related allowance recorded: $ 316 Commercial & Industrial 1,077 6 Commercial RE & Construction Agricultural & Farmland 764 13 Residential Real Estate 110 3 Consumer & Other 334 All Impaired Loans < $100,000 With a specific allowance recorded: 1,152 - Commercial & Industrial 1,447 - Commercial RE & Construction Agricultural & Farmland 1,046 12 Residential Real Estate 388 5 Consumer & Other Totals: $ 1,468 $ - Commercial & Industrial $ 2,524 $ 6 Commercial RE & Construction $ - $ - Agricultural & Farmland $ 1,810 $ 25 Residential Real Estate $ 498 $ 8 Consumer & Other $ 334 $ - All Impaired Loans < $100,000 Twelve Months Ended December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance ($'s in thousands) With no related allowance recorded: Commercial & Industrial $ 316 $ 316 $ - Commercial RE & Construction 530 530 - Agricultural & Farmland - - - Residential Real Estate 567 611 - Consumer & Other 110 110 - All Impaired Loans < $100,000 565 565 - With a specific allowance recorded: Commercial & Industrial 952 1,552 510 Commercial RE & Construction 1,505 1,505 1,018 Agricultural & Farmland - - - Residential Real Estate 1,080 1,080 242 Consumer & Other 371 371 41 Totals: Commercial & Industrial $ 1,268 $ 1,868 $ 510 Commercial RE & Construction $ 2,035 $ 2,035 $ 1,018 Agricultural & Farmland $ - $ - $ - Residential Real Estate $ 1,647 $ 1,691 $ 242 Consumer & Other $ 481 $ 481 $ 41 All Impaired Loans < $100,000 $ 565 $ 565 $ - Six Months Ended Three Months Ended ($'s in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial & Industrial $ 316 $ - $ 316 $ - Commercial RE & Construction 596 - 596 - Agricultural & Farmland - - - - Residential Real Estate 1,061 28 1,058 13 Consumer & Other 112 5 110 2 All Impaired Loans < $100,000 1,161 - 1,161 - With a specific allowance recorded: Commercial & Industrial 1,645 - 1,608 - Commercial RE & Construction 186 5 185 3 Agricultural & Farmland - - - - Residential Real Estate 1,029 20 1,026 10 Consumer & Other 494 13 491 6 Totals: Commercial & Industrial $ 1,961 $ - $ 1,924 $ - Commercial RE & Construction $ 782 $ 5 $ 781 $ 3 Agricultural & Farmland $ - $ - $ - $ - Residential Real Estate $ 2,090 $ 48 $ 2,084 $ 23 Consumer & Other $ 606 $ 18 $ 601 $ 8 All Impaired Loans < $100,000 $ 1,161 $ - $ 1,161 $ - Impaired loans less than $100,000 are included in groups of homogenous loans. These loans are evaluated based on delinquency status. Interest income recognized on a cash basis does not materially differ from interest income recognized on an accrual basis. Troubled Debt Restructured (TDR) Loans TDRs are modified loans where a concession was provided to a borrower experiencing financial difficulties. Loan modifications are considered TDRs when the concessions provided are not available to the borrower through either normal channels or other sources. However, not all loan modifications are TDRs. TDR Concession Types The Company’s standards relating to loan modifications consider, among other factors, minimum verified income requirements, cash flow analysis, and collateral valuations. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet a borrower’s specific circumstances at a point in time. All loan modifications, including those classified as TDRs, are reviewed and approved. The types of concessions provided to borrowers include: · Interest rate reduction: A reduction of the stated interest rate to a nonmarket rate for the remaining original life of the loan. The Company also may grant interest rate concessions for a limited timeframe on a case by case basis. · Amortization or maturity date change: A change in the amortization or maturity date beyond what the collateral supports, including a concession that does any of the following: (1) Lengthens the amortization period of the amortized principal beyond market terms. This concession reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven. (2) Reduces the amount of loan principal to be amortized. This concession also reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven. (3) Extends the maturity date or dates of the debt beyond what the collateral supports. This concession generally applies to loans without a balloon payment at the end of the term of the loan. In addition, there may be instances where renewing loans potentially require non-market terms and would then be reclassified as TDRs. · Other: A concession that is not categorized as one of the concessions described above. These concessions include, but are not limited to: principal forgiveness, collateral concessions, covenant concessions, and reduction of accrued interest. Principal forgiveness may result from any TDR modification of any concession type. The following presents the activity of TDRs during the three and six months ended June 30, 2015 and 2014. Three Months Ended June 30, 2015 ($ in thousands) Number of Loans Pre- Modification Recorded Balance Post Recorded Residential Real Estate - $ - $ - Consumer & Other - - - Total Modification - $ - $ - ($ in thousands) Interest Term Combination Total Modification Residential Real Estate $ - $ - $ - $ - Consumer & Other - - - - Total Modifications $ - $ - $ - $ - The loans described above increased the allowance for loan and lease losses ("ALLL") by $0.00 million in the three month period ended June 30, 2015. Six Months Ended June 30, 2015 ($ in thousands) Number of Loans Pre- Modification Recorded Balance Post Modification Recorded Balance Residential Real Estate 1 $ 24 $ 24 Consumer & Other - - - Total Modifications 1 $ 24 $ 24 ($ in thousands) Interest Term Combination Total Modification Residential Real Estate $ - $ 24 $ - $ 24 Consumer & Other - - - - Total Modifications $ - $ 24 $ - $ 24 The loans described above increased the allowance for loan and lease losses ("ALLL") by $0.00 million in the six month period ended June 30, 2015. Three Months Ended June 30, 2014 ($ in thousands) Number of Loans Pre- Modification Recorded Balance Post Recorded Residential Real Estate - $ - $ - Consumer & Other - - - Total Modification - $ - $ - ($ in thousands) Interest Only Term Combination Total Modification Residential Real Estate $ - $ - $ - $ - Consumer & Other - - - - Total Modifications $ - $ - $ - $ - The loans described above increased the allowance for loan and lease losses ("ALLL") by $0.00 million in the three month period ended June 30, 2014. Six Months Ended June 30, 2014 ($ in thousands) Number of Loans Pre- Post Residential Real Estate - $ - $ - Consumer & Other - - - Total Modifications - $ - $ - ($ in thousands) Interest Only Term Combination Total Modification Residential Real Estate $ - $ - $ - $ - Consumer & Other - - - - Total Modifications $ - $ - $ - $ - The loans described above increased the allowance for loan and lease losses ("ALLL") by $0.00 million in the six month period ended June 30, 2014. There were no TDR’s modified during the past twelve months that have subsequently defaulted as of June 30, 2015. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Financial Instruments [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 5 – DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company manages its exposures to a wide variety of business and operational risks primarily through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash payments principally related to certain variable-rate assets. Non-designated Hedges The Company does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously offset by interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of June 30, 2015 and December 31, 2014, the notional amount of customer-facing swaps was approximately $15.6 million and $12.6 million, respectively. The same amounts were offset with third party counterparties, as described above. The Company has minimum collateral posting thresholds with its derivative counterparties. As of June 30, 2015 and December 31, 2014, the Company had posted cash as collateral in the amount of $0.5 million and $0.4 million, respectively. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the Balance Sheet, as of June 30, 2015 and December 31, 2014. Asset Derivatives Liability Derivatives ($ in thousands) June 30, 2015 June 30, 2015 Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 318 Other Liabilities $ 318 December 31, 2014 December 31, 2014 Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 273 Other Liabilities $ 273 Effect of Derivative Instruments on the Income Statement The Company’s derivative financial instruments had no net effect on the Income Statements for the six months ended June 30, 2015 and 2014. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value of Assets and Liabilities [Abstract] | |
FAIR VALUE OF ASSETS AND LIABILITIES | NOTE 6 – FAIR VALUE OF ASSETS AND LIABILITIES Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis, recognized in the accompanying balance sheets, as well as the general classifications of such assets pursuant to the valuation hierarchy. Available-for-Sale Securities The fair values of available-for-sale securities are determined by various valuation methodologies. Level 1 securities include money market mutual funds. Level 1 inputs include quoted prices in an active market. Level 2 securities include U.S. treasury and government agencies, mortgage-backed securities, obligations of political and state subdivisions and equity securities. Level 2 inputs do not include quoted prices for individual securities in active markets; however, they do include inputs that are either directly or indirectly observable for the individual security being valued. Such observable inputs include interest rates and yield curves at commonly quoted intervals, volatilities, prepayment speeds, credit risks and default rates. Also included are inputs derived principally from or corroborated by observable market data by correlation or other means. Interest Rate Contracts The fair values of interest rate contracts are based upon the estimated amount the Company would receive or pay to terminate the contracts or agreements, taking into account underlying interest rates, creditworthiness of underlying customers for credit derivatives and, when appropriate, the creditworthiness of the counterparties. The following table presents the fair value measurements of assets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015 and December 31, 2014. Fair Value Measurements Using: ($ in thousands) Fair Values Available-for-Sale Securities: 6/30/2015 (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 11,716 $ - $ 11,716 $ - Mortgage-backed securities 68,604 - 68,604 - State and political subdivisions 18,443 - 18,443 - Equity securities 23 23 Interest rate contracts - assets 318 318 Interest rate contracts - liabilities (318 ) (318 ) Fair Value Measurements Using: ($ in thousands) Fair Values Available-for-Sale Securities: 12/31/2014 (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 15,307 $ - $ 15,307 $ - Mortgage-backed securities 50,740 - 50,740 - State and political subdivisions 19,170 - 19,170 - Equity securities 23 23 Interest rate contracts - assets 273 273 Interest rate contracts - liabilities (273 ) (273 ) Level 1 – Quoted Prices in Active Markets for Identical Assets Level 2 – Significant Other Observable Inputs Level 3 – Significant Unobservable Inputs The following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Collateral-dependent Impaired Loans, NET of ALLL Loans for which it is probable the Company will not collect all principal and interest due according to contractual terms are measured for impairment. The estimated fair value of collateral-dependent impaired loans is based on the appraised value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. This method requires obtaining an independent appraisal of the collateral, which is reviewed for accuracy and consistency by Credit Administration. These appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by applying a discount factor to the value based on the Company’s loan review policy. All impaired loans held by the Company were collateral dependent at June 30, 2015 and December 31, 2014. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models associated with the servicing rights and discounting the cash flows using discount market rates, prepayment speeds and default rates. The servicing portfolio has been valued using all relevant positive and negative cash flows including servicing fees; miscellaneous income and float; marginal costs of servicing; the cost of carry of advances; and foreclosure losses; and applying certain prevailing assumptions used in the marketplace. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy. These mortgage servicing rights are tested for impairment on a quarterly basis. Foreclosed Assets Held For Sale The following table presents the fair value measurements of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fell at June 30, 2015 and December 31, 2014: Fair Value Measurements Using: ($ in thousands) Fair Values at Description 6/30/2015 (Level 1) (Level 2) (Level 3) Impaired loans $ 2,928 $ - $ - $ 2,928 Mortgage Servicing Rights 1,461 - - 1,461 Fair Value Measurements Using: ($ in thousands) Fair Values at Description 12/31/2014 (Level 1) (Level 2) (Level 3) Impaired loans $ 2,538 $ - $ - $ 2,538 Mortgage Servicing Rights 3,037 - - 3,037 Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation Range (Weighted ($'s in thousands) 6/30/2015 Technique Unobservable Inputs Average) Collateral-dependent impaired loans $ 2,928 Market comparable Comparability adjustments (%) Not available Properties Mortgage servicing rights 1,461 Discounted cash flow Discount Rate 9.75 % Constant prepayment rate 8.90 % P&I earnings credit 0.19 % T&I earnings credit 1.66 % Inflation for cost of servicing 1.50 % Fair Value at Valuation Range (Weighted ($'s in thousands) 12/31/2014 Technique Unobservable Inputs Average) Collateral-dependent impaired loans $ 2,538 Market comparable Comparability adjustments (%) Not available properties Mortgage servicing rights 3,037 Discounted cash flow Discount Rate 9.50 % Constant prepayment rate 10.30 % P&I earnings credit 0.17 % T&I earnings credit 1.75 % Inflation for cost of servicing 1.50 % There were no changes in the inputs or methodologies used to determine fair value at June 30, 2015 as compared to December 31, 2014. The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheets at amounts other than fair value. Cash and Due From Banks, Federal Reserve and Federal Home Loan Bank Stock and Accrued Interest Receivable and Payable The carrying amount approximates the fair value. Loans Held for Sale The fair value of loans held for sale is based upon quoted market prices, where available, or is determined by discounting estimated cash flows using interest rates approximating the Company’s current origination rates for similar loans and adjusted to reflect the inherent credit risk. Loans The estimated fair value for loans receivable is based on estimates of the rate State Bank would charge for similar loans at June 30, 2015 and December 31, 2014, applied for the time period until the loans are assumed to re-price or be paid. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models associated with the servicing rights and discounting the cash flows using discount market rates, prepayment speeds and default rates. The servicing portfolio has been valued using all relevant positive and negative cash flows including servicing fees, miscellaneous income and float; marginal costs of servicing; the cost of carry of advances; and foreclosure losses; and applying certain prevailing assumptions used in the marketplace. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy. These mortgage servicing rights are tested for impairment on a quarterly basis. Deposits, FHLB advances & Repurchase agreements Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates the fair value. The estimated fair value for fixed-maturity time deposits, as well as borrowings, is based on estimates of the rate State Bank could pay on similar instruments with similar terms and maturities at June 30, 2015 and December 31, 2014. Loan Commitments The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The estimated fair values for other financial instruments and off-balance-sheet loan commitments approximate cost at June 30, 2015 and December 31, 2014 and are not considered significant to this presentation. Trust Preferred Securities The fair value for Trust Preferred Securities is estimated by discounting the cash flows using an appropriate discount rate. The following table presents estimated fair values of the Company’s other financial instruments carried at other than fair value. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments, and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. June 30, 2015 Carrying Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 21,709 $ 21,709 $ - $ - Loans held for sale 10,067 - 10,295 - Loans, net of allowance for loan losses 515,397 - - 516,760 Federal Reserve and FHLB Bank stock 3,748 - 3,748 - Mortgage Servicing Rights 6,548 - - 7,437 Accrued interest receivable 1,506 - 1,506 - Financial liabilities Deposits $ 562,926 $ 96,322 $ 468,818 $ - FHLB Advances 34,000 - 34,054 - Short-term borrowings 15,169 - 15,169 - Trust preferred securities 10,310 - 7,603 - Accrued interest payable 289 - 289 - December 31, 2014 Carrying Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 28,197 $ 28,197 $ - $ - Loans held for sale 5,168 - 5,315 - Loans, net of allowance for loan losses 509,565 - - 510,314 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Mortgage Servicing Rights 5,704 - - 6,358 Accrued interest receivable 1,346 - 1,346 - Financial liabilities Deposits $ 550,906 $ 97,853 $ 455,383 $ - FHLB advances 30,000 - 29,907 - Short-term borrowings 12,740 - 12,740 - Trust preferred securities 10,310 - 7,206 - Accrued interest payable 264 - 264 - |
Repurchase Agreements
Repurchase Agreements | 6 Months Ended |
Jun. 30, 2015 | |
Repurchase Agreements [Abstract] | |
Repurchase Agreements | NOTE 7 - REPURCHASE AGREEMENTS Repurchase agreements are offered by the bank to commercial business customers and public institutions to provide them with an opportunity to earn a return on their excess cash balances. These repurchase agreements are considered secured borrowings and on a daily basis State Bank transfers securities to these customers in exchange for their cash and subsequently agrees to repurchase those same securities the next business day. In the event State Bank is unable to repurchase the securities from the customer, the customer will then have a claim against those securities. The repurchase borrowers for State Bank are all in the Overnight and Continuous maturity bucket. All of these repurchase balances are collateralized with US Agency and Mortgage Backed Securities. |
Preferred Capital Offering
Preferred Capital Offering | 6 Months Ended |
Jun. 30, 2015 | |
Preferred Capital Offering [Abstract] | |
PREFERRED CAPITAL OFFERING | NOTE 8 – PREFERRED CAPITAL OFFERING On December 23, 2014, the Company completed its public offering of 1,500,000 depository shares, each representing a 1/100 th Each Series A Preferred Share, at the option of the holder, is convertible at any time into the number of common shares equal to $1,000.00 divided by the conversion price then in effect, which at March 31, 2015, was $10.34. On or after the fifth anniversary of the issue date of the Series A Preferred Shares (December 23, 2019), the Company may require all holders of Series A Preferred Shares (and, therefore, depository shares) to convert their shares into common shares of the Company, provided the Company’s common share price exceeds 120 percent of the conversion price noted above. The conversion price will be impacted by the quarterly dividend paid on the common shares. At June 30, 2015, the aggregate number of common shares issuable upon the conversion of outstanding Series A Preferred Shares was 1,450,677. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Summary of average number of shares used in the computation of basic and diluted earnings per share | Three Months Ended Six Months End (shares in thousands) June 30, June 30, 2015 2014 2015 2014 Basic earnings per share 4,884 4,874 4,882 4,873 Diluted earnings per share 6,382 4,893 6,381 4,894 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Securities [Abstract] | |
Summary of amortized cost and approximate fair values of securities | Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: June 30, 2015 U.S. Treasury and Government agencies $ 11,568 $ 148 $ - $ 11,716 Mortgage-backed securities 68,442 546 (384 ) 68,604 State and political subdivisions 17,616 841 (14 ) 18,443 Equity securities 23 - - 23 $ 97,649 $ 1,535 $ (398 ) $ 98,786 Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: December 31, 2014: U.S. Treasury and Government agencies $ 15,187 $ 124 $ (4 ) $ 15,307 Mortgage-backed securities 50,563 462 (285 ) 50,740 State and political subdivisions 18,075 1,095 - 19,170 Equity securities 23 - - 23 $ 83,848 $ 1,681 $ (289 ) $ 85,240 |
Summary of amortized cost and fair value of securities available for sale by contractual maturity | Available for Sale Amortized Fair ($ in thousands) Cost Value Within one year $ 1,130 $ 1,153 Due after one year through five years 2,283 2,385 Due after five years through ten years 5,302 5,529 Due after ten years 20,469 21,092 29,184 30,159 Mortgage-backed securities & equity securities 68,465 68,627 Totals $ 97,649 $ 98,786 |
Summary of securities with unrealized losses | ($ in thousands) Less than 12 Months 12 Months or Longer Total June 30, 2015 Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Securities: Mortgage-backed securities $ 24,847 $ (219 ) $ 5,898 $ (165 ) $ 30,745 $ (384 ) State and political subdivisions 1,345 (14 ) - - 1,345 (14 ) $ 26,192 $ (233 ) $ 5,898 $ (165 ) $ 32,090 $ (398 ) ($ in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2014 Fair Unrealized Losses Fair Unrealized Losses Fair Unrealized Losses Securities: U.S. Treasury and Government agencies $ 1,387 $ (4 ) $ - $ - $ 1,387 $ (4 ) Mortgage-backed securities 20,491 (73 ) 7,073 (212 ) 27,564 (285 ) $ 21,878 $ (77 ) $ 7,073 $ (212 ) $ 28,951 $ (289 ) |
Loans and Allowance for Loan 18
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Loans and Allowance For Loan Losses [Abstract] | |
Summary of categories of loans | ($ in thousands) Total Loans Non-Accrual Loans Jun. 2015 Dec. 2014 Jun. 2015 Dec. 2014 Commercial & Industrial $ 84,305 $ 88,485 $ 702 $ 1,387 Commercial RE & Construction 223,994 217,030 2,023 2,092 Agricultural & Farmland 45,724 46,217 - - Residential Real Estate 116,944 113,214 772 992 Consumer & Other 51,444 51,546 112 138 Total Loans $ 522,411 $ 516,492 $ 3,609 $ 4,609 Unearned Income $ (8 ) $ (156 ) Total Loans, net of unearned income $ 522,403 $ 516,336 Allowance for loan losses $ (7,006 ) $ (6,771 ) |
Summary of allowance for loan losses and recorded investment in loans based on portfolio segment and impairment method | Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended June 30, 2015 Beginning balance $ 1,574 $ 2,892 $ 212 $ 1,318 $ 834 $ 6,830 Charge Offs (300 ) - - (48 ) (2 ) $ (350 ) Recoveries 15 3 1 3 4 26 Provision 199 171 48 137 (55 ) 500 Ending Balance $ 1,488 $ 3,066 $ 261 $ 1,410 $ 781 $ 7,006 ALLOWANCE FOR LOAN AND LEASE LOSSES For the Six Months Ended June 30, 2015 Beginning balance $ 1,630 $ 2,857 $ 208 $ 1,308 $ 768 $ 6,771 Charge Offs (309 ) (250 ) - (61 ) (32 ) $ (653 ) Recoveries 21 3 2 5 6 37 Provision 146 456 51 158 39 850 Ending Balance $ 1,488 $ 3,066 $ 261 $ 1,410 $ 781 $ 7,006 Loans Receivable at June 30, 2015 Allowance: Ending balance: individually evaluated for impairment $ 404 $ 802 $ - $ 165 $ 39 $ 1,410 Ending balance: collectively evaluated for impairment $ 1,084 $ 2,264 $ 261 $ 1,245 $ 742 $ 5,596 Loans: Ending balance: individually evaluated for impairment $ 568 $ 2,229 $ - $ 1,586 $ 463 $ 4,846 Ending balance: collectively evaluated for impairment $ 83,737 $ 221,765 $ 45,724 $ 115,358 $ 50,981 $ 517,565 Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total Loans Receivable at December 31, 2014 Allowance: Ending balance: individually evaluated for impairment $ 510 $ 1,018 $ - $ 242 $ 41 $ 1,811 Ending balance: collectively evaluated for impairment $ 1,120 $ 1,839 $ 208 $ 1,066 $ 727 $ 4,960 Loans: Ending balance: individually evaluated for impairment $ 1,268 $ 2,035 $ - $ 1,647 $ 481 $ 5,431 Ending balance: collectively evaluated for impairment $ 87,217 $ 214,995 $ 46,217 $ 111,567 $ 51,065 $ 511,061 For the Three Months Ended Commercial & Commercial RE & Construction Agricultural & Farmland Residential Real Estate Consumer & Other Total ($'s in thousands) ALLOWANCE FOR LOAN AND LEASE LOSSES Beginning balance $ 1,902 $ 2,751 $ 177 $ 1,161 $ 735 $ 6,726 Charge Offs (300 ) (1 ) - - (29 ) $ (330 ) Recoveries 2 8 1 9 2 22 Provision 56 (101 ) 16 96 83 150 Ending Balance $ 1,660 $ 2,657 $ 194 $ 1,266 $ 791 $ 6,568 For the Six Months Ended Commercial & Commercial RE & Construction Agricultural & Farmland Residential Real Estate Consumer & Other Total ($'s in thousands) ALLOWANCE FOR LOAN AND LEASE LOSSES Beginning balance $ 2,175 $ 2,708 $ 159 $ 1,067 $ 855 $ 6,964 Charge Offs (607 ) (1 ) - (15 ) (30 ) $ (653 ) Recoveries 12 60 1 14 20 107 Provision 80 (110 ) 34 200 (54 ) 150 Ending Balance $ 1,660 $ 2,657 $ 194 $ 1,266 $ 791 $ 6,568 |
Summary of credit risk profile of the Company's loan portfolio based on rating category | June 30, 2015 Commercial & Industrial Commercial RE & Construction Agricultural & Farmland Residential Real Estate Consumer & Total ($ in thousands) 1-2 $ 846 $ 59 $ 56 $ - $ 5 $ 966 3 23,690 64,570 8,631 107,788 47,710 252,389 4 58,732 146,797 37,037 6,730 3,459 252,755 Total Pass (1 - 4) 83,268 211,426 45,724 114,518 51,174 506,110 Special Mention (5) 318 6,505 - 1,180 75 8,078 Substandard (6) 75 4,008 - 474 83 4,640 Doubtful (7) 644 2,055 - 772 112 3,583 Loss (8) - - - - - - Total Loans $ 84,305 $ 223,994 $ 45,724 $ 116,944 $ 51,444 $ 522,411 December 31, 2014 Commercial & Industrial Commercial RE & Construction Agricultural & Farmland Residential Real Estate Consumer & Other Total ($ in thousands) 1-2 $ 1,148 $ 66 $ 61 $ - $ - $ 1,275 3 23,580 67,779 9,505 105,149 47,795 253,808 4 61,691 136,427 36,651 5,611 3,465 243,845 Total Pass (1 - 4) 86,419 204,272 46,217 110,760 51,260 498,928 Special Mention (5) 83 6,224 - 1,160 84 7,551 Substandard (6) 752 4,422 - 312 55 5,541 Doubtful (7) 1,231 2,112 - 982 147 4,472 Loss (8) - - - - - - Total Loans $ 88,485 $ 217,030 $ 46,217 $ 113,214 $ 51,546 $ 516,492 |
Summary of loan portfolio aging analysis | June 30, 2015 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivable ($ in thousands) Commercial & Industrial $ - $ - $ 702 $ 702 $ 83,603 $ 84,305 Commercial RE & Construction - 3,566 1,908 5,474 218,520 223,994 Agricultural & Farmland - - - - 45,724 45,724 Residential Real Estate 10 118 273 401 116,543 116,944 Consumer & Other 19 - 4 23 51,421 51,444 Total Loans $ 29 $ 3,684 $ 2,887 $ 6,600 $ 515,811 $ 522,411 December 31, 2014 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivable ($ in thousands) Commercial & Industrial $ - $ - $ 987 $ 987 $ 87,498 $ 88,485 Commercial RE & Construction 3,660 - 1,747 5,407 211,623 217,030 Agricultural & Farmland - - - - 46,217 46,217 Residential Real Estate 164 19 377 560 112,654 113,214 Consumer & Other 39 81 - 120 51,426 51,546 Total Loans $ 3,863 $ 100 $ 3,111 $ 7,074 $ 509,418 $ 516,492 |
Summary of Impaired loan activity | Six Months Ended June 30, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized ($'s in thousands) With no related allowance recorded: Commercial & Industrial $ 316 $ 316 $ - $ 316 $ - Commercial RE & Construction 1,032 1,032 - 1,089 19 Agricultural & Farmland - - - - - Residential Real Estate 593 636 - 767 26 Consumer & Other 99 99 - 112 4 All Impaired Loans < $100,000 334 334 - 334 - With a specific allowance recorded: Commercial & Industrial 252 1,152 404 1,152 - Commercial RE & Construction 1,197 1,447 802 1,448 1 Agricultural & Farmland - - - - - Residential Real Estate 993 993 165 1,050 22 Consumer & Other 364 364 39 391 12 Totals: Commercial & Industrial $ 568 $ 1,468 $ 404 $ 1,468 $ - Commercial RE & Construction $ 2,229 $ 2,479 $ 802 $ 2,537 $ 20 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,586 $ 1,629 $ 165 $ 1,817 $ 48 Consumer & Other $ 463 $ 463 $ 39 $ 503 $ 16 All Impaired Loans < $100,000 $ 334 $ 334 $ - $ 334 $ - Three Months Ended June 30, 2015 Average Recorded Investment Interest Income Recognized With no related allowance recorded: $ 316 Commercial & Industrial 1,077 6 Commercial RE & Construction Agricultural & Farmland 764 13 Residential Real Estate 110 3 Consumer & Other 334 All Impaired Loans < $100,000 With a specific allowance recorded: 1,152 - Commercial & Industrial 1,447 - Commercial RE & Construction Agricultural & Farmland 1,046 12 Residential Real Estate 388 5 Consumer & Other Totals: $ 1,468 $ - Commercial & Industrial $ 2,524 $ 6 Commercial RE & Construction $ - $ - Agricultural & Farmland $ 1,810 $ 25 Residential Real Estate $ 498 $ 8 Consumer & Other $ 334 $ - All Impaired Loans < $100,000 Twelve Months Ended December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance ($'s in thousands) With no related allowance recorded: Commercial & Industrial $ 316 $ 316 $ - Commercial RE & Construction 530 530 - Agricultural & Farmland - - - Residential Real Estate 567 611 - Consumer & Other 110 110 - All Impaired Loans < $100,000 565 565 - With a specific allowance recorded: Commercial & Industrial 952 1,552 510 Commercial RE & Construction 1,505 1,505 1,018 Agricultural & Farmland - - - Residential Real Estate 1,080 1,080 242 Consumer & Other 371 371 41 Totals: Commercial & Industrial $ 1,268 $ 1,868 $ 510 Commercial RE & Construction $ 2,035 $ 2,035 $ 1,018 Agricultural & Farmland $ - $ - $ - Residential Real Estate $ 1,647 $ 1,691 $ 242 Consumer & Other $ 481 $ 481 $ 41 All Impaired Loans < $100,000 $ 565 $ 565 $ - Six Months Ended Three Months Ended ($'s in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial & Industrial $ 316 $ - $ 316 $ - Commercial RE & Construction 596 - 596 - Agricultural & Farmland - - - - Residential Real Estate 1,061 28 1,058 13 Consumer & Other 112 5 110 2 All Impaired Loans < $100,000 1,161 - 1,161 - With a specific allowance recorded: Commercial & Industrial 1,645 - 1,608 - Commercial RE & Construction 186 5 185 3 Agricultural & Farmland - - - - Residential Real Estate 1,029 20 1,026 10 Consumer & Other 494 13 491 6 Totals: Commercial & Industrial $ 1,961 $ - $ 1,924 $ - Commercial RE & Construction $ 782 $ 5 $ 781 $ 3 Agricultural & Farmland $ - $ - $ - $ - Residential Real Estate $ 2,090 $ 48 $ 2,084 $ 23 Consumer & Other $ 606 $ 18 $ 601 $ 8 All Impaired Loans < $100,000 $ 1,161 $ - $ 1,161 $ - |
Summary of newly restructured loans by type of modification | Three Months Ended June 30, 2015 ($ in thousands) Number of Loans Pre- Modification Recorded Balance Post Recorded Residential Real Estate - $ - $ - Consumer & Other - - - Total Modification - $ - $ - ($ in thousands) Interest Term Combination Total Modification Residential Real Estate $ - $ - $ - $ - Consumer & Other - - - - Total Modifications $ - $ - $ - $ - Six Months Ended June 30, 2015 ($ in thousands) Number of Loans Pre- Modification Recorded Balance Post Modification Recorded Balance Residential Real Estate 1 $ 24 $ 24 Consumer & Other - - - Total Modifications 1 $ 24 $ 24 ($ in thousands) Interest Term Combination Total Modification Residential Real Estate $ - $ 24 $ - $ 24 Consumer & Other - - - - Total Modifications $ - $ 24 $ - $ 24 Three Months Ended June 30, 2014 ($ in thousands) Number of Loans Pre- Modification Recorded Balance Post Recorded Residential Real Estate - $ - $ - Consumer & Other - - - Total Modification - $ - $ - ($ in thousands) Interest Only Term Combination Total Modification Residential Real Estate $ - $ - $ - $ - Consumer & Other - - - - Total Modifications $ - $ - $ - $ - Six Months Ended June 30, 2014 ($ in thousands) Number of Loans Pre- Post Residential Real Estate - $ - $ - Consumer & Other - - - Total Modifications - $ - $ - ($ in thousands) Interest Only Term Combination Total Modification Residential Real Estate $ - $ - $ - $ - Consumer & Other - - - - Total Modifications $ - $ - $ - $ - |
Derivative Financial Instrume19
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Financial Instruments [Abstract] | |
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet | Asset Derivatives Liability Derivatives ($ in thousands) June 30, 2015 June 30, 2015 Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 318 Other Liabilities $ 318 December 31, 2014 December 31, 2014 Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 273 Other Liabilities $ 273 |
Fair Value of Assets and Liab20
Fair Value of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value of Assets and Liabilities [Abstract] | |
Summary of fair value measurements of assets measured at fair value on a recurring basis | ($ in thousands) Fair Values Available-for-Sale Securities: 6/30/2015 (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 11,716 $ - $ 11,716 $ - Mortgage-backed securities 68,604 - 68,604 - State and political subdivisions 18,443 - 18,443 - Equity securities 23 23 Interest rate contracts - assets 318 318 Interest rate contracts - liabilities (318 ) (318 ) ($ in thousands) Fair Values Available-for-Sale Securities: 12/31/2014 (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 15,307 $ - $ 15,307 $ - Mortgage-backed securities 50,740 - 50,740 - State and political subdivisions 19,170 - 19,170 - Equity securities 23 23 Interest rate contracts - assets 273 273 Interest rate contracts - liabilities (273 ) (273 ) |
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ($ in thousands) Fair Values at Description 6/30/2015 (Level 1) (Level 2) (Level 3) Impaired loans $ 2,928 $ - $ - $ 2,928 Mortgage Servicing Rights 1,461 - - 1,461 ($ in thousands) Fair Values at Description 12/31/2014 (Level 1) (Level 2) (Level 3) Impaired loans $ 2,538 $ - $ - $ 2,538 Mortgage Servicing Rights 3,037 - - 3,037 |
Summary of quantitative information about unobservable inputs used in recurring and nonrecurring | Fair Value at Valuation Range (Weighted ($'s in thousands) 6/30/2015 Technique Unobservable Inputs Average) Collateral-dependent impaired loans $ 2,928 Market comparable Comparability adjustments (%) Not available Properties Mortgage servicing rights 1,461 Discounted cash flow Discount Rate 9.75 % Constant prepayment rate 8.90 % P&I earnings credit 0.19 % T&I earnings credit 1.66 % Inflation for cost of servicing 1.50 % Fair Value at Valuation Range (Weighted ($'s in thousands) 12/31/2014 Technique Unobservable Inputs Average) Collateral-dependent impaired loans $ 2,538 Market comparable Comparability adjustments (%) Not available properties Mortgage servicing rights 3,037 Discounted cash flow Discount Rate 9.50 % Constant prepayment rate 10.30 % P&I earnings credit 0.17 % T&I earnings credit 1.75 % Inflation for cost of servicing 1.50 % |
Summary of estimated fair values of company's financial instruments | June 30, 2015 Carrying Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 21,709 $ 21,709 $ - $ - Loans held for sale 10,067 - 10,295 - Loans, net of allowance for loan losses 515,397 - - 516,760 Federal Reserve and FHLB Bank stock 3,748 - 3,748 - Mortgage Servicing Rights 6,548 - - 7,437 Accrued interest receivable 1,506 - 1,506 - Financial liabilities Deposits $ 562,926 $ 96,322 $ 468,818 $ - FHLB Advances 34,000 - 34,054 - Short-term borrowings 15,169 - 15,169 - Trust preferred securities 10,310 - 7,603 - Accrued interest payable 289 - 289 - December 31, 2014 Carrying Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 28,197 $ 28,197 $ - $ - Loans held for sale 5,168 - 5,315 - Loans, net of allowance for loan losses 509,565 - - 510,314 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Mortgage Servicing Rights 5,704 - - 6,358 Accrued interest receivable 1,346 - 1,346 - Financial liabilities Deposits $ 550,906 $ 97,853 $ 455,383 $ - FHLB advances 30,000 - 29,907 - Short-term borrowings 12,740 - 12,740 - Trust preferred securities 10,310 - 7,206 - Accrued interest payable 264 - 264 - |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of average number of shares used in the computation of basic and diluted earnings per share | ||||
Basic earnings per share | 4,884 | 4,875 | 4,873 | 4,873 |
Diluted earnings per share | 6,382 | 4,893 | 6,381 | 4,894 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings per share (Textual) | ||
Common shares excluded from computation of diluted EPS | 50,424 | 66,570 |
Conversion of depository shares | 1,500,000 | |
Conversion of common stock, shares | 1,450,677 |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | $ 97,649 | $ 83,848 |
Gross Unrealized Gains | 1,535 | 1,681 |
Gross Unrealized Losses | (398) | (289) |
Securities available for sale, at fair value | 98,786 | 85,240 |
U.S. Treasury and Government Agencies [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 11,568 | 15,187 |
Gross Unrealized Gains | $ 148 | 124 |
Gross Unrealized Losses | (4) | |
Securities available for sale, at fair value | $ 11,716 | 15,307 |
Mortgage-backed securities [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 68,442 | 50,563 |
Gross Unrealized Gains | 546 | 462 |
Gross Unrealized Losses | (384) | (285) |
Securities available for sale, at fair value | 68,604 | 50,740 |
State and political subdivisions [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 17,616 | 18,075 |
Gross Unrealized Gains | 841 | $ 1,093 |
Gross Unrealized Losses | (14) | |
Securities available for sale, at fair value | 18,443 | $ 19,170 |
Equity securities [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | $ 23 | $ 23 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Securities available for sale, at fair value | $ 23 | $ 23 |
Securities (Details 1)
Securities (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of amortized cost and fair value of securities available for sale by contractual maturity | ||
Available for Sale Amortized Cost, Within one year | $ 1,130 | |
Available for Sale Amortized Cost, Due after one year through five years | 2,283 | |
Available for Sale Amortized Cost, Due after five years through ten years | 5,302 | |
Available for Sale Amortized Cost, Due after ten years | 20,469 | |
Available for Sale Amortized Cost | 29,184 | |
Amortized Cost Mortgage-backed securities and equity securities | 68,465 | |
Available for Sale, Amortized Cost, Total | 97,649 | $ 83,848 |
Available for Sale Fair Value, Within one year | 1,153 | |
Available for Sale Fair Value, Due after one year through five years | 2,385 | |
Available for Sale Fair value, Due after five years through ten years | 5,529 | |
Available for Sale Fair Value, Due after ten years | 21,092 | |
Available for Sale Fair Value | 30,159 | |
Fair Value Mortgage-backed securities and equity securities | 68,627 | |
Total Fair Value | $ 98,786 | $ 85,240 |
Securities (Details 2)
Securities (Details 2) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of securities with unrealized losses | ||
Less than 12 Months, Fair Value | $ 26,192 | $ 21,878 |
Less than 12 Months, Unrealized Losses | (233) | (77) |
12 Months or Longer, Fair Value | 5,898 | 7,073 |
12 Months or Longer, Unrealized Losses | (165) | (212) |
Total, Fair Value | 32,090 | 28,951 |
Total, Unrealized Losses | (398) | (289) |
U.S. Treasury and Government Agencies [Member] | ||
Schedule of securities with unrealized losses | ||
Less than 12 Months, Fair Value | 1,387 | |
Less than 12 Months, Unrealized Losses | $ (4) | |
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Total, Fair Value | $ 1,387 | |
Total, Unrealized Losses | (4) | |
Mortgage-backed securities [Member] | ||
Schedule of securities with unrealized losses | ||
Less than 12 Months, Fair Value | 24,847 | 20,491 |
Less than 12 Months, Unrealized Losses | (219) | (73) |
12 Months or Longer, Fair Value | 5,898 | 7,073 |
12 Months or Longer, Unrealized Losses | (165) | (212) |
Total, Fair Value | 30,745 | 27,564 |
Total, Unrealized Losses | (384) | $ (285) |
State and political subdivisions [Member] | ||
Schedule of securities with unrealized losses | ||
Less than 12 Months, Fair Value | 1,345 | |
Less than 12 Months, Unrealized Losses | $ (14) | |
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Total, Fair Value | $ 1,345 | |
Total, Unrealized Losses | $ (14) |
Securities (Details Textual)
Securities (Details Textual) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Securities (Textual) | |||
Fair value of securities pledged as collateral, to secure public deposits and for other purposes | $ 69,800 | $ 44,500 | |
Fair value of securities delivered for repurchase agreements | 18,600 | 16,500 | |
Total, Fair Value | $ 32,090 | $ 28,951 | |
Fair value as a percentage of available-for-sale investment portfolio | 32.50% | 37.00% | |
Gross Unrealized Losses | $ (398) | $ (289) | |
Securities for reverse repurchase agreements | $ 60 | ||
Tax expense for net security gains | $ 20 |
Loans and Allowance for Loan 27
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of categories of loans | ||
Total loans | $ 522,411 | $ 516,492 |
Non-accrual loans | 3,609 | 4,609 |
Unearned income | (8) | (156) |
Total loans, net of unearned income | 522,403 | 516,336 |
Allowance for loan losses | (7,006) | (6,771) |
Commercial & Industrial [Member] | ||
Summary of categories of loans | ||
Total loans | 84,305 | 88,485 |
Non-accrual loans | 702 | 1,387 |
Commercial RE & Construction [Member] | ||
Summary of categories of loans | ||
Total loans | 223,994 | 217,030 |
Non-accrual loans | 2,023 | 2,092 |
Agricultural & Farmland [Member] | ||
Summary of categories of loans | ||
Total loans | $ 45,724 | $ 46,217 |
Non-accrual loans | ||
Residential Real Estate [Member] | ||
Summary of categories of loans | ||
Total loans | $ 116,944 | $ 113,214 |
Non-accrual loans | 772 | 992 |
Consumer & Other [Member] | ||
Summary of categories of loans | ||
Total loans | 51,444 | 51,546 |
Non-accrual loans | $ 112 | $ 138 |
Loans and Allowance for Loan 28
Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | $ 6,830 | $ 6,726 | $ 6,771 | $ 6,964 | |
Charge Offs | (350) | (330) | (653) | (653) | |
Recoveries | 26 | 22 | 37 | 107 | |
Provision | 500 | 150 | 850 | 150 | |
Ending Balance | 7,006 | 6,568 | 7,006 | 6,568 | |
Ending balance: individually evaluated for impairment | 1,410 | 1,410 | $ 1,811 | ||
Ending balance: collectively evaluated for impairment | 5,596 | 5,596 | 4,960 | ||
Loans, Ending balance individually evaluated for impairment | 4,846 | 4,846 | 5,431 | ||
Loans, Ending balance collectively evaluated for impairment | 517,565 | 517,565 | 511,061 | ||
Commercial & Industrial [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | 1,574 | 1,902 | 1,630 | 2,175 | |
Charge Offs | (300) | (300) | (309) | (607) | |
Recoveries | 15 | 2 | 21 | 12 | |
Provision | 199 | 56 | 146 | 80 | |
Ending Balance | 1,488 | 1,660 | 1,488 | 1,660 | |
Ending balance: individually evaluated for impairment | 404 | 404 | 510 | ||
Ending balance: collectively evaluated for impairment | 1,084 | 1,084 | 1,120 | ||
Loans, Ending balance individually evaluated for impairment | 568 | 568 | 1,268 | ||
Loans, Ending balance collectively evaluated for impairment | 83,737 | 83,737 | 87,217 | ||
Commercial RE & Construction [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | $ 2,892 | 2,751 | 2,857 | 2,708 | |
Charge Offs | (1) | (250) | (1) | ||
Recoveries | $ 3 | 8 | 3 | 60 | |
Provision | 171 | (101) | 456 | (110) | |
Ending Balance | 3,066 | 2,657 | 3,066 | 2,657 | |
Ending balance: individually evaluated for impairment | 802 | 802 | 1,018 | ||
Ending balance: collectively evaluated for impairment | 2,264 | 2,264 | 1,839 | ||
Loans, Ending balance individually evaluated for impairment | 2,229 | 2,229 | 2,035 | ||
Loans, Ending balance collectively evaluated for impairment | 221,765 | 221,765 | $ 214,995 | ||
Agricultural & Farmland [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | $ 212 | $ 177 | $ 208 | $ 159 | |
Charge Offs | |||||
Recoveries | $ 1 | $ 1 | $ 2 | $ 1 | |
Provision | 48 | 16 | 51 | 34 | |
Ending Balance | $ 261 | 194 | $ 261 | 194 | |
Ending balance: individually evaluated for impairment | |||||
Ending balance: collectively evaluated for impairment | $ 261 | $ 261 | $ 208 | ||
Loans, Ending balance individually evaluated for impairment | |||||
Loans, Ending balance collectively evaluated for impairment | $ 45,724 | $ 45,724 | $ 46,217 | ||
Residential Real Estate [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | 1,318 | 1,161 | 1,308 | 1,067 | |
Charge Offs | (48) | (61) | (15) | ||
Recoveries | 3 | 9 | 5 | 14 | |
Provision | 137 | 96 | 158 | 200 | |
Ending Balance | 1,410 | 1,266 | 1,410 | 1,266 | |
Ending balance: individually evaluated for impairment | 165 | 165 | 242 | ||
Ending balance: collectively evaluated for impairment | 1,245 | 1,245 | 1,066 | ||
Loans, Ending balance individually evaluated for impairment | 1,586 | 1,586 | 1,647 | ||
Loans, Ending balance collectively evaluated for impairment | 115,358 | 115,358 | 111,567 | ||
Consumer & Other [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | 834 | 735 | 768 | 855 | |
Charge Offs | (2) | (29) | (32) | (30) | |
Recoveries | 4 | 2 | 6 | 20 | |
Provision | (55) | 83 | 39 | (54) | |
Ending Balance | 781 | $ 791 | 781 | $ 791 | |
Ending balance: individually evaluated for impairment | 39 | 39 | 41 | ||
Ending balance: collectively evaluated for impairment | 742 | 742 | 727 | ||
Loans, Ending balance individually evaluated for impairment | 463 | 463 | 481 | ||
Loans, Ending balance collectively evaluated for impairment | $ 50,981 | $ 50,981 | $ 51,065 |
Loans and Allowance for Loan 29
Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | $ 522,411 | $ 516,492 |
Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 966 | 1,275 |
Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 252,389 | 253,808 |
Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 252,755 | 243,845 |
Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 506,110 | 498,928 |
Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 8,078 | 7,551 |
Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 4,640 | 5,541 |
Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | $ 3,583 | $ 4,472 |
Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | ||
Commercial & Industrial [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | $ 84,305 | $ 88,485 |
Commercial & Industrial [Member] | Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 846 | 1,148 |
Commercial & Industrial [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 23,690 | 23,580 |
Commercial & Industrial [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 58,732 | 61,691 |
Commercial & Industrial [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 83,268 | 86,419 |
Commercial & Industrial [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 318 | 83 |
Commercial & Industrial [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 75 | 752 |
Commercial & Industrial [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | $ 644 | $ 1,231 |
Commercial & Industrial [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | ||
Commercial RE & Construction [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | $ 223,994 | $ 217,030 |
Commercial RE & Construction [Member] | Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 59 | 66 |
Commercial RE & Construction [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 64,570 | 67,779 |
Commercial RE & Construction [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 146,797 | 136,427 |
Commercial RE & Construction [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 211,426 | 204,272 |
Commercial RE & Construction [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 6,505 | 6,224 |
Commercial RE & Construction [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 4,008 | 4,422 |
Commercial RE & Construction [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | $ 2,055 | $ 2,112 |
Commercial RE & Construction [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | ||
Agricultural & Farmland [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | $ 45,724 | $ 46,217 |
Agricultural & Farmland [Member] | Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 56 | 61 |
Agricultural & Farmland [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 8,631 | 9,505 |
Agricultural & Farmland [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 37,037 | 36,651 |
Agricultural & Farmland [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | $ 45,724 | $ 46,217 |
Agricultural & Farmland [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | ||
Agricultural & Farmland [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | ||
Agricultural & Farmland [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | ||
Agricultural & Farmland [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | ||
Residential Real Estate [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | $ 116,944 | $ 113,214 |
Residential Real Estate [Member] | Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | ||
Residential Real Estate [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | $ 107,788 | $ 105,149 |
Residential Real Estate [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 6,730 | 5,611 |
Residential Real Estate [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 114,518 | 110,760 |
Residential Real Estate [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 1,180 | 1,160 |
Residential Real Estate [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 474 | 312 |
Residential Real Estate [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | $ 772 | $ 982 |
Residential Real Estate [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | ||
Consumer & Other [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | $ 51,444 | $ 51,546 |
Consumer & Other [Member] | Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 5 | |
Consumer & Other [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 47,710 | $ 47,795 |
Consumer & Other [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 3,459 | 3,465 |
Consumer & Other [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 51,174 | 51,260 |
Consumer & Other [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 75 | 84 |
Consumer & Other [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | 83 | 55 |
Consumer & Other [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross | $ 112 | $ 147 |
Consumer & Other [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Loans and leases receivable, gross |
Loans and Allowance for Loan 30
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary of loan portfolio aging analysis | ||
Total past due | $ 6,600 | $ 7,074 |
Current | 515,811 | 509,418 |
Total loans receivable | 522,411 | 516,492 |
30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | 29 | 3,863 |
60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | 3,684 | 100 |
Greater than 90 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | 2,887 | 3,111 |
Commercial & Industrial [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | 702 | 987 |
Current | 83,603 | 87,498 |
Total loans receivable | $ 84,305 | $ 88,485 |
Commercial & Industrial [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | ||
Commercial & Industrial [Member] | 60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | ||
Commercial & Industrial [Member] | Greater than 90 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | $ 720 | $ 987 |
Commercial RE & Construction [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | 5,474 | 5,407 |
Current | 218,520 | 211,623 |
Total loans receivable | $ 223,994 | 217,030 |
Commercial RE & Construction [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | $ 3,660 | |
Commercial RE & Construction [Member] | 60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | $ 3,566 | |
Commercial RE & Construction [Member] | Greater than 90 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | $ 1,908 | $ 1,747 |
Agricultural & Farmland [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | ||
Current | $ 45,724 | $ 46,217 |
Total loans receivable | $ 45,724 | $ 46,217 |
Agricultural & Farmland [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | ||
Agricultural & Farmland [Member] | 60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | ||
Agricultural & Farmland [Member] | Greater than 90 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | ||
Residential Real Estate [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | $ 401 | $ 560 |
Current | 116,543 | 112,654 |
Total loans receivable | 116,944 | 113,214 |
Residential Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | 10 | 164 |
Residential Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | 118 | 19 |
Residential Real Estate [Member] | Greater than 90 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | 273 | 377 |
Consumer & Other [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | 23 | 120 |
Current | 51,421 | 51,426 |
Total loans receivable | 51,444 | 51,546 |
Consumer & Other [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | $ 19 | 39 |
Consumer & Other [Member] | 60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | $ 81 | |
Consumer & Other [Member] | Greater than 90 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total past due | $ 4 |
Loans and Allowance for Loan 31
Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Summary of Impaired loan activity | |||||
With no related allowance recorded, Average Recorded Investment | $ 316 | ||||
With no related allowance recorded, Interest Income Recognized | |||||
With a specific allowance recorded, Average Recorded Investment | $ 1,152 | ||||
With a specific allowance recorded, Interest Income Recognized | |||||
Total Average Recorded Investment | $ 1,468 | ||||
Total Interest Income Recognized | |||||
Commercial & Industrial [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | $ 316 | $ 316 | $ 316 | ||
With no related allowance recorded, Unpaid Principal Balance | 316 | 316 | 316 | ||
With no related allowance recorded, Average Recorded Investment | 1,077 | $ 316 | $ 316 | $ 316 | |
With no related allowance recorded, Interest Income Recognized | 6 | ||||
With a specific allowance recorded, Recorded Investment | 252 | $ 252 | 952 | ||
With a specific allowance recorded, Unpaid Principal Balance | 1,152 | 1,152 | 1,552 | ||
With a specific allowance recorded, Related Allowance | 404 | 404 | 510 | ||
With a specific allowance recorded, Average Recorded Investment | $ 1,447 | $ 1,608 | $ 1,152 | $ 1,645 | |
With a specific allowance recorded, Interest Income Recognized | |||||
Total Recorded Investment | $ 568 | $ 568 | 1,268 | ||
Total Unpaid Principal Balance | 1,468 | 1,468 | 1,868 | ||
Total Related Allowance | 404 | 404 | 510 | ||
Total Average Recorded Investment | 2,524 | $ 1,924 | $ 1,468 | $ 1,961 | |
Total Interest Income Recognized | 6 | ||||
Commercial RE & Construction [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | 1,032 | $ 1,032 | 530 | ||
With no related allowance recorded, Unpaid Principal Balance | $ 1,032 | 1,032 | 530 | ||
With no related allowance recorded, Average Recorded Investment | $ 596 | 1,089 | $ 596 | ||
With no related allowance recorded, Interest Income Recognized | 19 | ||||
With a specific allowance recorded, Recorded Investment | $ 1,197 | 1,197 | 1,505 | ||
With a specific allowance recorded, Unpaid Principal Balance | 1,447 | 1,447 | 1,505 | ||
With a specific allowance recorded, Related Allowance | $ 802 | 802 | 1,018 | ||
With a specific allowance recorded, Average Recorded Investment | $ 185 | 1,448 | $ 186 | ||
With a specific allowance recorded, Interest Income Recognized | 3 | 1 | 5 | ||
Total Recorded Investment | $ 2,229 | 2,229 | 2,035 | ||
Total Unpaid Principal Balance | 2,479 | 2,479 | 2,035 | ||
Total Related Allowance | $ 802 | 802 | $ 1,018 | ||
Total Average Recorded Investment | 781 | 2,537 | 782 | ||
Total Interest Income Recognized | $ 3 | $ 20 | $ 5 | ||
Agricultural & Farmland [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | |||||
With no related allowance recorded, Unpaid Principal Balance | |||||
With no related allowance recorded, Average Recorded Investment | $ 764 | ||||
With no related allowance recorded, Interest Income Recognized | $ 13 | ||||
With a specific allowance recorded, Recorded Investment | |||||
With a specific allowance recorded, Unpaid Principal Balance | |||||
With a specific allowance recorded, Related Allowance | |||||
With a specific allowance recorded, Average Recorded Investment | $ 1,046 | ||||
With a specific allowance recorded, Interest Income Recognized | $ 12 | ||||
Total Recorded Investment | |||||
Total Unpaid Principal Balance | |||||
Total Related Allowance | |||||
Total Average Recorded Investment | $ 1,810 | ||||
Total Interest Income Recognized | 25 | ||||
Residential Real Estate [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | 593 | $ 593 | $ 567 | ||
With no related allowance recorded, Unpaid Principal Balance | 636 | 636 | 611 | ||
With no related allowance recorded, Average Recorded Investment | 110 | $ 1,058 | 767 | $ 1,061 | |
With no related allowance recorded, Interest Income Recognized | 3 | 13 | 26 | 28 | |
With a specific allowance recorded, Recorded Investment | 993 | 993 | 1,080 | ||
With a specific allowance recorded, Unpaid Principal Balance | 993 | 993 | 1,080 | ||
With a specific allowance recorded, Related Allowance | 165 | 165 | 242 | ||
With a specific allowance recorded, Average Recorded Investment | 388 | 1,026 | 1,050 | 1,029 | |
With a specific allowance recorded, Interest Income Recognized | 5 | 10 | 22 | 20 | |
Total Recorded Investment | 1,586 | 1,586 | 1,647 | ||
Total Unpaid Principal Balance | 1,629 | 1,629 | 1,691 | ||
Total Related Allowance | 165 | 165 | 242 | ||
Total Average Recorded Investment | 498 | 2,084 | 1,817 | 2,090 | |
Total Interest Income Recognized | 8 | 23 | 48 | 48 | |
Consumer & Other [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | 99 | 99 | 110 | ||
With no related allowance recorded, Unpaid Principal Balance | 99 | 99 | 110 | ||
With no related allowance recorded, Average Recorded Investment | $ 334 | 110 | 112 | 112 | |
With no related allowance recorded, Interest Income Recognized | 2 | 4 | 5 | ||
With a specific allowance recorded, Recorded Investment | $ 364 | 364 | 371 | ||
With a specific allowance recorded, Unpaid Principal Balance | 364 | 364 | 371 | ||
With a specific allowance recorded, Related Allowance | $ 39 | 39 | 41 | ||
With a specific allowance recorded, Average Recorded Investment | 491 | 391 | 494 | ||
With a specific allowance recorded, Interest Income Recognized | 6 | 12 | 13 | ||
Total Recorded Investment | $ 463 | 463 | 481 | ||
Total Unpaid Principal Balance | 463 | 463 | 481 | ||
Total Related Allowance | 39 | 39 | 41 | ||
Total Average Recorded Investment | $ 334 | 601 | 503 | 606 | |
Total Interest Income Recognized | 8 | 16 | 18 | ||
All Impaired Loans less than $100,000 [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | $ 334 | 334 | 565 | ||
With no related allowance recorded, Unpaid Principal Balance | $ 334 | 334 | 565 | ||
With no related allowance recorded, Average Recorded Investment | $ 1,161 | $ 334 | $ 1,161 | ||
With no related allowance recorded, Interest Income Recognized | |||||
Total Recorded Investment | $ 334 | $ 334 | 565 | ||
Total Unpaid Principal Balance | $ 334 | $ 334 | $ 565 | ||
Total Related Allowance | |||||
Total Average Recorded Investment | $ 1,161 | $ 334 | $ 1,161 | ||
Total Interest Income Recognized |
Loans and Allowance for Loan 32
Loans and Allowance for Loan Losses (Details 5) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)Loan | Jun. 30, 2014USD ($)Loan | Jun. 30, 2015USD ($)Loan | Jun. 30, 2014USD ($)Loan | |
Summary of newly restructured loans by type of modification | ||||
Number of Loans | Loan | 1 | |||
Pre-Modification Recorded Balance | $ 24 | |||
Post-Modification Recorded Balance | $ 24 | |||
Interest Only | ||||
Term | $ 24 | $ 24 | ||
Combination | ||||
Total Modification | $ 24 | $ 24 | ||
Residential Real Estate [Member] | ||||
Summary of newly restructured loans by type of modification | ||||
Number of Loans | Loan | 1 | |||
Pre-Modification Recorded Balance | $ 24 | |||
Post-Modification Recorded Balance | $ 24 | |||
Interest Only | ||||
Term | $ 24 | $ 24 | ||
Combination | ||||
Total Modification | $ 24 | $ 24 | ||
Consumer & Other [Member] | ||||
Summary of newly restructured loans by type of modification | ||||
Number of Loans | Loan | ||||
Pre-Modification Recorded Balance | ||||
Post-Modification Recorded Balance | ||||
Interest Only | ||||
Term | ||||
Combination | ||||
Total Modification |
Loans and Allowance for Loan 33
Loans and Allowance for Loan Losses (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Loans and Allowance for Loan Losses (Textual) | ||||
Principal amount outstanding of loans held-in-portfolio | $ 100 | $ 100 | ||
Impaired loans which included in groups of homogenous loans | Impaired loans less than $100,000 are included in groups of homogenous loans. | |||
Increase in allowance for loan and lease losses | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume34
Derivative Financial Instruments (Details) - Derivatives not designated as hedging instruments [Member] - Interest rate contracts [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Other Assets [Member] | ||
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet | ||
Asset Derivatives | $ 318 | $ 273 |
Other Liabilities [Member] | ||
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet | ||
Liability Derivatives | $ 318 | $ 273 |
Derivative Financial Instrume35
Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative Financial Instruments (Textual) | ||
Notional amount of customer-facing swaps | $ 15.6 | $ 12.6 |
Cash as collateral | $ 0.5 | $ 0.4 |
Fair Value of Assets and Liab36
Fair Value of Assets and Liabilities (Details) - Available-For-Sale Securities [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
U.S. Treasury and Government Agencies [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | $ 11,716 | $ 15,307 |
Mortgage-backed securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 68,604 | 50,740 |
State and political subdivisions [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 18,443 | 19,170 |
Equity securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 23 | 23 |
Interest Rate Contracts Assets [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 318 | 273 |
Interest Rate Contracts Liabilities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | $ (318) | $ (273) |
Level 1 [Member] | U.S. Treasury and Government Agencies [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | Mortgage-backed securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | State and political subdivisions [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | Equity securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | Interest Rate Contracts Assets [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | Interest Rate Contracts Liabilities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 2 [Member] | U.S. Treasury and Government Agencies [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | $ 11,716 | $ 15,307 |
Level 2 [Member] | Mortgage-backed securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 68,604 | 50,740 |
Level 2 [Member] | State and political subdivisions [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 18,443 | 19,170 |
Level 2 [Member] | Equity securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 23 | 23 |
Level 2 [Member] | Interest Rate Contracts Assets [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 318 | 273 |
Level 2 [Member] | Interest Rate Contracts Liabilities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | $ (318) | $ (273) |
Level 3 [Member] | U.S. Treasury and Government Agencies [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | Mortgage-backed securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | State and political subdivisions [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | Equity securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | Interest Rate Contracts Assets [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | Interest Rate Contracts Liabilities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring |
Fair Value of Assets and Liab37
Fair Value of Assets and Liabilities (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Impaired Loans [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | $ 2,928 | $ 2,538 |
Impaired Loans [Member] | Level 1 [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Impaired Loans [Member] | Level 2 [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Impaired Loans [Member] | Level 3 [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | $ 2,928 | $ 2,538 |
Mortgage Servicing Rights [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | $ 1,461 | $ 3,037 |
Mortgage Servicing Rights [Member] | Level 1 [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Mortgage Servicing Rights [Member] | Level 2 [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Mortgage Servicing Rights [Member] | Level 3 [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | $ 1,461 | $ 3,037 |
Fair Value of Assets and Liab38
Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Collateral-dependent impaired loans [Member] | Comparability adjustments (%) [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 2,928 | $ 2,538 |
Fair Value Measurements, Valuation Technique | Market comparable Properties | Market comparable properties |
Fair Value Measurements, Unobservable Inputs | Comparability adjustments (%) | Comparability adjustments (%) |
Mortgage servicing rights [Member] | Discount Rate [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 1,461 | $ 3,037 |
Fair Value Measurements, Valuation Technique | Discounted cash flow | Discounted cash flow |
Fair Value Measurements, Unobservable Inputs | Discount Rate | Discount Rate |
Fair Value Measurements, Range (Weighted Average) | 9.75% | 9.50% |
Mortgage servicing rights [Member] | Constant prepayment rate [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements, Unobservable Inputs | Constant prepayment rate | Constant prepayment rate |
Fair Value Measurements, Range (Weighted Average) | 8.90% | 10.30% |
Mortgage servicing rights [Member] | P&I earnings credit [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements, Unobservable Inputs | P&I earnings credit | P&I earnings credit |
Fair Value Measurements, Range (Weighted Average) | 0.19% | 0.17% |
Mortgage servicing rights [Member] | T&I earnings credit [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements, Unobservable Inputs | T&I earnings credit | T&I earnings credit |
Fair Value Measurements, Range (Weighted Average) | 1.66% | 1.75% |
Mortgage servicing rights [Member] | Inflation for cost of servicing [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements, Unobservable Inputs | Inflation for cost of servicing | Inflation for cost of servicing |
Fair Value Measurements, Range (Weighted Average) | 1.50% | 1.50% |
Fair Value of Assets and Liab39
Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Financial assets | ||||
Cash and due from banks | $ 21,709 | $ 28,197 | $ 13,778 | $ 13,137 |
Loans held for sale | 10,067 | 5,168 | ||
Loans, net of allowance for loan losses | 515,397 | 509,565 | ||
Federal Reserve and FHLB Bank stock, at cost | 3,748 | 3,748 | ||
Mortgage Servicing Rights | 6,548 | 5,704 | ||
Accrued interest receivable | 1,506 | 1,346 | ||
Financial liabilities | ||||
Deposits | 562,926 | 550,906 | ||
FHLB advances | 34,000 | 30,000 | ||
Short-term borrowings | 15,169 | 12,740 | ||
Trust preferred securities | 10,310 | 10,310 | ||
Accrued interest payable | 289 | 264 | ||
Level 1 [Member] | ||||
Financial assets | ||||
Cash and due from banks | $ 21,709 | $ 28,197 | ||
Loans held for sale | ||||
Loans, net of allowance for loan losses | ||||
Federal Reserve and FHLB Bank stock, at cost | ||||
Mortgage Servicing Rights | ||||
Accrued interest receivable | ||||
Financial liabilities | ||||
Deposits | $ 96,322 | $ 97,853 | ||
FHLB advances | ||||
Short-term borrowings | ||||
Trust preferred securities | ||||
Accrued interest payable | ||||
Level 2 [Member] | ||||
Financial assets | ||||
Cash and due from banks | ||||
Loans held for sale | $ 10,295 | $ 5,315 | ||
Loans, net of allowance for loan losses | ||||
Federal Reserve and FHLB Bank stock, at cost | $ 3,748 | $ 3,748 | ||
Mortgage Servicing Rights | ||||
Accrued interest receivable | $ 1,506 | $ 1,346 | ||
Financial liabilities | ||||
Deposits | 468,818 | 455,383 | ||
FHLB advances | 34,054 | 29,907 | ||
Short-term borrowings | 15,169 | 12,740 | ||
Trust preferred securities | 7,603 | 7,206 | ||
Accrued interest payable | $ 289 | $ 264 | ||
Level 3 [Member] | ||||
Financial assets | ||||
Cash and due from banks | ||||
Loans held for sale | ||||
Loans, net of allowance for loan losses | $ 516,760 | $ 510,314 | ||
Federal Reserve and FHLB Bank stock, at cost | ||||
Mortgage Servicing Rights | $ 7,437 | $ 6,358 | ||
Accrued interest receivable | ||||
Financial liabilities | ||||
Deposits | ||||
FHLB advances | ||||
Short-term borrowings | ||||
Trust preferred securities | ||||
Accrued interest payable |
Preferred Capital Offering (Det
Preferred Capital Offering (Details) - Series A Preferred Stock [Member] - USD ($) | 1 Months Ended | 6 Months Ended |
Dec. 23, 2014 | Jun. 30, 2015 | |
Preferred Capital Offering (Textual) | ||
Liquidation preference per share | $ 1,000 | |
Share price | $ 10 | |
Description of preferred capital offering | The Company completed its public offering of 1,500,000 depository shares, each representing a 1/100th ownership interest in a 6.50 percent Noncumulative Convertible Preferred Share, Series A. | |
Proceeds from issuance of Series A preferred stock | $ 13,983,000 | |
Percentage of dividend rate of noncumulative convertible preferred share | 6.50% | |
Depository shares issued, value | $ 15,000,000 | |
Depository shares issued, shares | 1,500,000 | |
Conversion of stock, value converted | $ 1,000 | |
Conversion price | $ 10.34 | |
Preferred stock, conversion basis | On or after the fifth anniversary of the issue date of the Series A Preferred Shares (December 23, 2019), the Company may require all holders of Series A Preferred Shares (and, therefore, depository shares) to convert their shares into common shares of the Company, provided the Company's common share price exceeds 120 percent of the conversion price noted above. | |
Conversion of outstanding Series A preferred shares | 1,450,677 |