Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 14, 2016 | |
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 | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,852,551 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 25,167 | $ 20,459 |
Securities available for sale, at fair value | 92,689 | 89,789 |
Other securities - FRB and FHLB Stock | 3,748 | 3,748 |
Total investment securities | 96,437 | 93,537 |
Loans held for sale | 5,865 | 7,516 |
Loans, net of unearned income | 619,352 | 557,659 |
Allowance for loan losses | (7,320) | (6,990) |
Net loans | 612,032 | 550,669 |
Premises and equipment, net | 18,673 | 19,010 |
Cash surrender value of life insurance | 13,653 | 13,437 |
Goodwill & other intangibles | 16,426 | 16,435 |
Foreclosed assets held for sale, net | 73 | 286 |
Mortgage servicing rights | 6,887 | 7,152 |
Accrued interest receivable | 1,641 | 1,260 |
Other assets | 4,946 | 3,310 |
Total assets | 801,800 | 733,071 |
Deposits | ||
Non interest bearing demand | 116,976 | 113,113 |
Interest bearing demand | 135,729 | 126,443 |
Savings | 89,265 | 83,447 |
Money market | 126,501 | 104,412 |
Time deposits | 193,673 | 159,038 |
Total deposits | 662,144 | 586,453 |
Advances from Federal Home Loan Bank | 23,000 | 35,000 |
Repurchase agreements | 11,363 | 12,406 |
Trust preferred securities | 10,310 | 10,310 |
Accrued interest payable | 427 | 264 |
Other liabilities | 8,293 | 7,397 |
Total liabilities | 715,537 | 651,830 |
Commitments & Contingent Liabilities | ||
Stockholders' Equity | ||
Preferred stock, Series A | 13,983 | 13,983 |
Common stock | 12,569 | 12,569 |
Additional paid-in capital | 15,370 | 15,438 |
Retained earnings | 44,933 | 40,059 |
Accumulated other comprehensive income | 1,237 | 650 |
Treasury stock, at cost | (1,829) | (1,458) |
Total equity | 86,263 | 81,241 |
Total liabilities and equity | $ 801,800 | $ 733,071 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Loans | ||||
Taxable | $ 6,954 | $ 6,152 | $ 19,862 | $ 17,606 |
Nontaxable | 22 | 10 | 55 | 25 |
Securities | ||||
Taxable | 378 | 382 | 1,172 | 1,149 |
Nontaxable | 145 | 173 | 450 | 525 |
Total interest income | 7,499 | 6,717 | 21,539 | 19,305 |
Interest expense | ||||
Deposits | 677 | 492 | 1,869 | 1,487 |
Repurchase Agreements & Other | 5 | 5 | 14 | 14 |
Federal Home Loan Bank advances | 83 | 94 | 266 | 280 |
Trust preferred securities | 63 | 53 | 184 | 157 |
Total interest expense | 828 | 644 | 2,333 | 1,938 |
Net interest income | 6,671 | 6,073 | 19,206 | 17,367 |
Provision for loan losses | 100 | 250 | 950 | |
Net interest income after provision for loan losses | 6,671 | 5,973 | 18,956 | 16,417 |
Noninterest income | ||||
Wealth Management Fees | 695 | 636 | 1,971 | 1,961 |
Customer service fees | 692 | 734 | 2,052 | 2,068 |
Gain on sale of mtg. loans & OMSR's | 2,503 | 1,687 | 6,170 | 4,892 |
Mortgage loan servicing fees, net | 205 | 98 | (514) | 642 |
Gain on sale of non-mortgage loans | 327 | 296 | 927 | 872 |
Data service fees | 223 | 294 | 733 | 917 |
Net gain on sale of securities | 59 | 262 | ||
Gain/(loss) on sale/disposal of assets | (31) | 177 | (20) | |
Other income | 342 | 207 | 983 | 659 |
Total non-interest income | 5,015 | 3,952 | 12,761 | 11,991 |
Noninterest expense | ||||
Salaries and employee benefits | 4,672 | 3,650 | 12,765 | 11,062 |
Net occupancy expense | 523 | 481 | 1,612 | 1,464 |
Equipment expense | 649 | 568 | 1,883 | 1,657 |
Data processing fees | 352 | 286 | 996 | 796 |
Professional fees | 380 | 416 | 1,022 | 1,282 |
Marketing expense | 123 | 146 | 493 | 437 |
Telephone and communication | 101 | 96 | 302 | 284 |
Postage and delivery expense | 154 | 198 | 513 | 633 |
State, local and other taxes | 170 | 130 | 440 | 387 |
Employee expense | 117 | 126 | 363 | 417 |
Intangible amortization expense | 3 | 54 | 9 | 163 |
Other expenses | 686 | 475 | 1,834 | 1,506 |
Total non-interest expense | 7,930 | 6,626 | 22,232 | 20,088 |
Income before income tax expense | 3,756 | 3,299 | 9,485 | 8,320 |
Income tax expense | 1,209 | 1,035 | 3,018 | 2,569 |
Net income | 2,547 | 2,264 | 6,467 | 5,751 |
Preferred Stock Dividends | 244 | 244 | 731 | 712 |
Net income available to common shareholders | $ 2,303 | $ 2,020 | $ 5,736 | $ 5,039 |
Basic earnings per common share | $ 0.47 | $ 0.41 | $ 1.17 | $ 1.03 |
Diluted earnings per common share | 0.4 | 0.35 | 1.01 | 0.89 |
Dividends per common share | $ 0.06 | $ 0.05 | $ 0.175 | $ 0.145 |
Average common shares outstanding (in thousands): | ||||
Basic: | 4,874 | 4,884 | 4,888 | 4,882 |
Diluted: | 6,376 | 6,390 | 6,384 | 6,422 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 2,547 | $ 2,264 | $ 6,467 | $ 5,751 |
Available-for-sale investment securities: | ||||
Gross unrealized holding gain (loss) arising in the period | (418) | 617 | 1,151 | 362 |
Related tax (expense)/benefit | 142 | (210) | (391) | (123) |
Less: Reclassification for gain realized in income | (59) | (262) | ||
Related tax expense | 20 | 89 | ||
Net effect on other comprehensive income | (315) | 407 | 587 | 239 |
Total comprehensive income | $ 2,232 | $ 2,671 | $ 7,054 | $ 5,990 |
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 | Treasury Stock |
Beginning Balance at Dec. 31, 2014 | $ 75,683 | $ 13,983 | $ 12,569 | $ 15,461 | $ 34,379 | $ 918 | $ (1,627) |
Net Income | 5,751 | 5,751 | |||||
Other Comprehensive Income | 239 | 239 | |||||
Dividends on Common Stock | (713) | (713) | |||||
Dividends on preferred stock | (712) | (712) | |||||
Issuance of Restricted Stock and Stock Options | 18 | (78) | 96 | ||||
Stock Repurchase | (2) | (2) | |||||
Share based compensation expense | 61 | 61 | |||||
Ending Balance at Sep. 30, 2015 | 80,325 | 13,983 | 12,569 | 15,444 | 38,705 | 1,157 | (1,533) |
Beginning Balance at Dec. 31, 2015 | 81,241 | 13,983 | 12,569 | 15,438 | 40,059 | 650 | (1,458) |
Net Income | 6,467 | 6,467 | |||||
Other Comprehensive Income | 587 | 587 | |||||
Dividends on Common Stock | (862) | (862) | |||||
Dividends on preferred stock | (731) | (731) | |||||
Issuance of Restricted Stock and Stock Options | 99 | (154) | 253 | ||||
Stock Repurchase | (624) | (624) | |||||
Share based compensation expense | 86 | 86 | |||||
Ending Balance at Sep. 30, 2016 | $ 86,263 | $ 13,983 | $ 12,569 | $ 15,370 | $ 44,933 | $ 1,237 | $ (1,829) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividend common stock, per share amount | $ 0.175 | $ 0.145 |
Dividend preferred stock, per share amount | $ 0.4875 | $ 0.475 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | ||
Net Income | $ 6,467 | $ 5,751 |
Items providing/(using) cash | ||
Depreciation and amortization | 892 | 795 |
Provision for loan losses | 250 | 950 |
Expense of share-based compensation plan | 86 | 61 |
Amortization of premiums and discounts on securities | 688 | 744 |
Amortization of intangible assets | 9 | 163 |
Amortization of originated mortgage servicing rights | 879 | 725 |
Recapture of originated mortgage servicing rights impairment | (71) | (269) |
Impairment of mortgage servicing rights | 1,236 | 218 |
Proceeds from sale of loans held for sale | 249,159 | 224,090 |
Originations of loans held for sale | (241,732) | (216,963) |
Gain from sale of loans | (7,098) | (5,764) |
(Gain)/loss on sale of assets | (150) | 20 |
Changes in | ||
Interest receivable | (381) | (471) |
Other assets | (2,848) | (8,276) |
Interest payable and other liabilities | 1,059 | 3,535 |
Net cash provided by operating activities | 8,445 | 5,309 |
Investing Activities | ||
Purchases of available-for-sale securities | (17,572) | (25,456) |
Proceeds from maturities of available-for-sale securities | 11,923 | 14,830 |
Proceeds from sales of available-for-sale-securities | 2,950 | |
Net change in loans | (61,932) | (25,233) |
Purchase of premises and equipment and software | (517) | (4,846) |
Proceeds from sales or disposal of premises and equipment | 96 | 36 |
Proceeds from sale of foreclosed assets | 785 | 110 |
Net cash used in investing activities | (64,267) | (40,559) |
Financing Activities | ||
Net increase in demand deposits, money market, interest checking and savings accounts | 41,056 | 27,018 |
Net increase (decrease) in certificates of deposit | 34,635 | (4,356) |
Net increase in securities sold under agreements to repurchase | (1,043) | 4,171 |
Repayment of Federal Home Loan Bank advances | (14,000) | (4,000) |
Proceeds from Federal Home Loan Bank advances | 2,000 | 4,000 |
Net proceeds from share based compensation plans | 99 | 18 |
Repurchase of common stock | (624) | (2) |
Dividends on common stock | (862) | (713) |
Dividends on preferred stock | (731) | (712) |
Net cash provided by financing activities | 60,530 | 25,425 |
Increase in Cash and Cash Equivalents | 4,708 | (9,825) |
Cash and Cash Equivalents, Beginning of Year | 20,459 | 28,197 |
Cash and Cash Equivalents, End of Period | 25,167 | 18,372 |
Supplemental Cash Flows Information | ||
Interest paid | 2,170 | 1,861 |
Income taxes paid | 3,479 | 1,650 |
Transfer of loans to foreclosed assets | $ 319 | $ 35 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
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 nine months ended September 30, 2016, are not necessarily indicative of results for the complete year. The condensed consolidated balance sheet of the Company as of December 31, 2015 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, 2015. The following paragraphs summarize the impact of new accounting pronouncements: Accounting Standards Update (ASU) No. 2016-13: Financial Instruments – Credit Losses (Topic 326) This ASU replaces the current GAAP incurred impairment methodology regarding credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this update affect an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. The amendments in this ASU are effective for reporting periods beginning after December 15, 2019, and management will need further study to determine the impact on the Company’s consolidated financial statements. ASU No. 2016-09: Stock Compensation (Topic 718) This ASU affects all entities that issue share-based payment awards to their employees. The update is intended to simplify the accounting for these transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, and management will need further study to determine the impact on the Company’s consolidated financial statements. ASU No. 2016-06: Derivatives and Hedging (Topic 815) This ASU clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under the amendments in this Update is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, and management does not believe this ASU will have a material impact on the Company’s consolidated financial statements. ASU No. 2016-05: Derivatives and Hedging (Topic 815) This ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedging accounting criteria continue to be met. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, and management does not believe this ASU will have a material impact on the Company’s consolidated financial statements. ASU No. 2016-02: Leases (Topic 842) This ASU is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The amendments in this ASU are effective for reporting periods beginning after December 15, 2019, and management will need further study to determine the impact on the Company’s consolidated financial statements. ASU No. 2016-01: Financial Instruments – Recognition and measurement of financial assets and financial liabilities (Subtopic 825-10) This ASU makes targeted improvements to generally accepted accounting principles. Specifically, the amendments require equity securities with readily determinable fair values be classified into different categories and require equity securities to be measured at fair value with changes in the fair value recognized through net income. The amendments in this ASU are effective for reporting periods beginning after December 15, 2017, and management does not believe this ASU will have a material impact on the Company’s consolidated financial statements. ASU No. 2015-16: Business Combinations (Topic 805) This ASU requires an acquirer to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. Further, an entity must present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings that would have been recorded previously if the provisional amounts had been recorded as of the acquisition date. The amendments in this ASU are in effect, and they did not have a material impact on the Company’s consolidated financial statements. ASU No. 2015-15: Interest – Imputation of Interest (Subtopic 835-30) This ASU requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. The amendments in this ASU are in effect, and they did not have a material impact on the Company’s consolidated financial statements. ASU No. 2015-14: Revenue from Contracts with Customers (Subtopic 606) This ASU defers by one year the effective date of the guidance in ASU 2014-09. The amendments in this ASU are now effective for reporting periods beginning after December 15, 2017, and management still does not believe this ASU will have a material impact on the Company’s consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016, share-based awards totaling 0 common shares were not considered in computing diluted EPS as they were anti-dilutive. For the period ended September 30, 2015, share-based awards totaling 50,424 common shares were not considered in computing diluted EPS as they were anti-dilutive. Included in the diluted EPS for September 30, 2016 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 1,454,702 common shares. The average number of common shares used in the computation of basic and diluted earnings per share were: Three Months Ended ($ in thousands - except per share data) 2016 2015 Distributed earnings allocated to common shares $ 295 $ 246 Undistributed earnings allocated to common shares 2,005 1,773 Net earnings allocated to common shares 2,300 2,019 Net earnings allocated to participating securities 3 1 Dividends on convertible preferred shares 244 244 Net Income allocated to common shares and participating securities $ 2,547 $ 2,264 Weighted average shares outstanding for basic earnings per share 4,874 4,884 Dilutive effect of stock compensation 47 55 Dilutive effect of convertible shares 1,455 1,451 Weighted average shares outstanding for diluted earnings per share 6,376 6,390 Basic earnings per common share $ 0.47 $ 0.41 Diluted earnings per common share $ 0.40 $ 0.35 Nine Months Ended ($ in thousands - except per share data) 2016 2015 Distributed earnings allocated to common shares $ 862 $ 713 Undistributed earnings allocated to common shares 4,868 4,322 Net earnings allocated to common shares 5,730 5,035 Net earnings allocated to participating securities 6 4 Dividends on convertible preferred shares 731 712 Net Income allocated to common shares and participating securities $ 6,467 $ 5,751 Weighted average shares outstanding for basic earnings per share 4,888 4,882 Dilutive effect of stock compensation 41 89 Dilutive effect of convertible shares 1,455 1,451 Weighted average shares outstanding for diluted earnings per share 6,384 6,422 Basic earnings per common share $ 1.17 $ 1.03 Diluted earnings per common share $ 1.01 $ 0.89 |
Securities
Securities | 9 Months Ended |
Sep. 30, 2016 | |
Securities [Abstract] | |
SECURITIES | NOTE 3 - SECURITIES The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of securities at September 30, 2016 and December 31, 2015 were as follows: Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: September 30, 2016 U.S. Treasury and Government agencies $ 13,920 $ 115 $ (2 ) $ 14,033 Mortgage-backed securities 61,882 905 (27 ) 62,760 State and political subdivisions 14,990 884 (1 ) 15,873 Equity securities 23 - - 23 $ 90,815 $ 1,904 $ (30 ) $ 92,689 Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: December 31, 2015: U.S. Treasury and Government agencies $ 10,804 $ 101 $ - $ 10,905 Mortgage-backed securities 61,459 311 (427 ) 61,343 State and political subdivisions 16,519 999 - 17,518 Equity securities 23 - - 23 $ 88,805 $ 1,411 $ (427 ) $ 89,789 The amortized cost and fair value of securities available for sale at September 30, 2016, 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 $ 442 $ 447 Due after one year through five years 7,473 7,696 Due after five years through ten years 6,836 7,143 Due after ten years 14,159 14,620 28,910 29,906 Mortgage-backed securities & equity securities 61,905 62,783 Totals $ 90,815 $ 92,689 The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $76.6 million at September 30, 2016 and $42.6 million at December 31, 2015. The fair value of securities delivered for repurchase agreements were $15.8 million at September 30, 2016 and $15.8 million at December 31, 2015. For the nine months ended September 30, 2016, there were gross gains of $0.26 million resulting from sales of available-for-sale securities, which was a reclassification from accumulated other comprehensive income (OCI) and was included in the net gain on sale of securities. The related $0.09 million in tax expense was a reclassification from OCI and was included in the income tax expense line item in the income statement. There were no realized gains and losses from sales of available-for-sale securities for the nine months ended September 30, 2015. 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 $8.3 million at September 30, 2016, and $37.2 million at December 31, 2015, which was approximately 9 and 34 percent, respectively, of the Company’s available-for-sale investment portfolio at such dates. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. Securities with unrealized losses, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2016 and December 31, 2015 are as follows: ($ in thousands) Less than 12 Months 12 Months or Longer Total September 30, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: U.S. Treasury and Government agencies $ 2,598 $ (2 ) $ - $ - $ 2,598 $ (2 ) Mortgage-backed securities $ 882 $ (16 ) $ 4,011 $ (11 ) $ 4,893 $ (27 ) State and Political subdivisions $ 796 $ (1 ) $ 0 $ 0 $ 796 $ (1 ) $ 4,276 $ (19 ) $ 4,011 $ (11 ) $ 8,287 $ (30 ) ($ in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: Mortgage-backed securities $ 30,184 $ (253 ) $ 7,061 $ (174 ) $ 37,245 $ (427 ) $ 30,184 $ (253 ) $ 7,061 $ (174 ) $ 37,245 $ (427 ) The total potential unrealized loss as of September 30, 2016 in the securities portfolio was $0.03 million, which was down from the $0.43 million unrealized loss at December 31, 2015. 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 | 9 Months Ended |
Sep. 30, 2016 | |
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 non-classified 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 September 30, 2016 and December 31, 2015 include: Total Loans Non-Accrual Loans ($ in thousands) Sept. 2016 Dec. 2015 Sept. 2016 Dec. 2015 Commercial & Industrial $ 100,951 $ 86,542 146 188 Commercial RE & Construction 268,408 242,208 1,393 5,670 Agricultural & Farmland 54,609 43,835 5 7 Residential Real Estate 139,757 130,806 1,152 749 Consumer & Other 55,333 54,224 193 32 Total Loans $ 619,058 $ 557,615 $ 2,889 $ 6,646 Unearned Income $ 294 $ 44 Total Loans, net of unearned income $ 619,352 $ 557,659 Allowance for loan losses $ (7,320 ) $ (6,990 ) 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 September 30, 2016, December 31, 2015 and September 30, 2015. Commercial Commercial Agricultural Residential Consumer & Industrial Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - September 30, 2016 Beginning balance $ 1,137 $ 4,126 $ 189 $ 1,342 $ 656 $ 7,450 Charge Offs (42 ) (30 ) - - (64 ) $ (136 ) Recoveries 1 - 1 1 3 6 Provision 155 (960 ) 142 460 203 - Ending Balance $ 1,251 $ 3,136 $ 332 $ 1,803 $ 798 $ 7,320 For the Nine Months Ended - September 30, 2016 Beginning balance $ 914 $ 3,886 $ 204 $ 1,312 $ 674 $ 6,990 Charge Offs (134 ) (30 ) - - (68 ) $ (232 ) Recoveries 248 6 2 1 55 312 Provision 223 (726 ) 126 490 137 250 Ending Balance $ 1,251 $ 3,136 $ 332 $ 1,803 $ 798 $ 7,320 Loans Receivable at September 30, 2016 Allowance: Ending balance: individually evaluated for impairment $ - $ 127 $ - $ 148 $ 19 $ 294 Ending balance: collectively evaluated for impairment $ 1,251 $ 3,009 $ 332 $ 1,655 $ 779 $ 7,026 Loans: Ending balance: individually evaluated for impairment $ - $ 1,772 $ - $ 1,874 $ 346 $ 3,992 Ending balance: collectively evaluated for impairment $ 100,951 $ 266,636 $ 54,609 $ 137,883 $ 54,987 $ 615,066 Commercial Commercial Agricultural Residential Consumer ($'s in thousands) & Industrial Construction & Farmland Real Estate & Other Total Loans Receivable at December 31, 2015 Allowance: Ending balance: individually evaluated for impairment $ - $ 1,759 $ - $ 167 $ 37 $ 1,963 Ending balance: collectively evaluated for impairment $ 914 $ 2,127 $ 204 $ 1,145 $ 637 $ 5,027 Loans: Ending balance: individually evaluated for impairment $ 126 $ 5,754 $ - $ 1,713 $ 464 $ 8,057 Ending balance: collectively evaluated for impairment $ 86,416 $ 236,454 $ 43,835 $ 129,093 $ 53,760 $ 549,558 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 - September 30, 2015 Beginning balance $ 1,488 $ 3,066 $ 261 $ 1,410 $ 781 $ 7,006 Charge Offs - (53 ) - (4 ) (1 ) $ (58 ) Recoveries 1 - 1 23 4 29 Provision (621 ) 997 (40 ) (154 ) (82 ) 100 Ending Balance $ 868 $ 4,010 $ 222 $ 1,275 $ 702 $ 7,076 For the Nine Months Ended - September 30, 2015 Beginning balance $ 1,630 $ 2,857 $ 208 $ 1,308 $ 768 $ 6,771 Charge Offs (309 ) (303 ) - (65 ) (34 ) $ (711 ) Recoveries 22 3 3 28 10 66 Provision (475 ) 1,453 11 4 (43 ) 950 Ending Balance $ 868 $ 4,010 $ 222 $ 1,275 $ 701 $ 7,076 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 September 30, 2016 and December 31, 2015. September 30, 2016 Commercial Commercial Agricultural Residential Consumer ($ in thousands) & Industrial Construction & Farmland Real Estate & Other Total 1-2 $ 1,207 $ 44 $ 40 $ 338 $ 4 $ 1,633 3 27,841 84,276 9,661 111,581 52,185 285,544 4 71,312 176,270 44,908 25,801 2,824 321,115 Total Pass (1 - 4) 100,360 260,590 54,609 137,720 55,013 608,292 Special Mention (5) - 4,419 - 566 62 5,047 Substandard (6) 150 2,006 - 408 64 2,628 Doubtful (7) 441 1,394 - 1,063 193 3,091 Loss (8) - - - - - - Total Loans $ 100,951 $ 268,408 $ 54,609 $ 139,757 $ 55,333 $ 619,058 December 31, 2015 Commercial Commercial RE & Agricultural Residential Consumer ($ in thousands) & Industrial Construction & Farmland Real Estate & Other Total 1-2 $ 709 $ 767 $ 47 $ - $ 15 $ 1,538 3 23,362 79,915 8,195 118,463 50,745 280,680 4 61,799 149,473 35,593 10,418 3,223 260,506 Total Pass (1 - 4) 85,870 230,155 43,835 128,881 53,983 542,724 Special Mention (5) 330 5,260 - 756 70 6,416 Substandard (6) 110 1,072 - 420 139 1,741 Doubtful (7) 232 5,721 - 749 32 6,734 Loss (8) - - - - - - Total Loans $ 86,542 $ 242,208 $ 43,835 $ 130,806 $ 54,224 $ 557,615 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 $100 thousand and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Pass (grades 1 – 4): Special Mention (5): Substandard (6): Doubtful (7): Loss (8): The following tables present the Company’s loan portfolio aging analysis as of September 30, 2016 and December 31, 2015. ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans September 30, 2016 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ - $ - $ 110 $ 110 $ 100,841 $ 100,951 Commercial RE & Construction 56 909 1,135 2,100 266,308 268,408 Agricultural & Farmland - - - - 54,609 54,609 Residential Real Estate - 55 233 288 139,469 139,757 Consumer & Other 17 51 181 249 55,084 55,333 Total Loans $ 73 $ 1,015 $ 1,659 $ 2,747 $ 616,311 $ 619,058 ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans December 31, 2015 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ - $ 60 $ 188 $ 248 $ 86,294 $ 86,542 Commercial RE & Construction 99 - 5,280 5,379 236,829 242,208 Agricultural & Farmland - - - - 43,835 43,835 Residential Real Estate 98 198 156 452 130,354 130,806 Consumer & Other 64 - 2 66 54,158 54,224 Total Loans $ 261 $ 258 $ 5,626 $ 6,145 $ 551,470 $ 557,615 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 three and nine months ended September 30, 2016 and 2015, and for the twelve months ended December 31, 2015: Nine Months Ended September 30, 2016 Recorded Unpaid Principal Related Average Recorded Interest Income ($'s in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction 637 637 - 658 16 Agricultural & Farmland - - - - - Residential Real Estate 987 1,031 - 1,195 51 Consumer & Other 20 78 - 94 6 All Impaired Loans < $100,000 398 398 - 398 - With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction 1,135 1,385 127 1,404 - Agricultural & Farmland - - - - - Residential Real Estate 887 887 148 957 29 Consumer & Other 268 268 19 272 11 Totals: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction $ 1,772 $ 2,022 $ 127 $ 2,062 $ 16 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,874 $ 1,918 $ 148 $ 2,152 $ 80 Consumer & Other $ 346 $ 346 $ 19 $ 366 $ 17 All Impaired Loans < $100,000 $ 398 $ 398 $ - $ 398 $ - Three Months Ended September 30, 2016 Average Recorded Interest Income ($'s in thousands) Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - Commercial RE & Construction 647 6 Agricultural & Farmland - - Residential Real Estate 1,186 17 Consumer & Other 89 2 All Impaired Loans < $100,000 438 - With a specific allowance recorded: Commercial & Industrial - - Commercial RE & Construction 1,404 - Agricultural & Farmland - - Residential Real Estate 945 10 Consumer & Other 267 2 Totals: Commercial & Industrial $ - $ - Commercial RE & Construction $ 2,051 $ 6 Agricultural & Farmland $ - $ - Residential Real Estate $ 2,131 $ 27 Consumer & Other $ 356 $ 4 All Impaired Loans < $100,000 $ 438 $ - Twelve Months Ended December 31, 2015 Recorded Unpaid Principal Related Average Recorded Interest Income ($'s in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ 126 $ 1,214 $ - $ 1,388 $ - Commercial RE & Construction 1,110 1,110 - 1,206 27 Agricultural & Farmland - - - - - Residential Real Estate 657 657 - 862 52 Consumer & Other 90 90 - 107 9 All Impaired Loans < $100,000 131 131 - 131 - With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction 4,644 4,893 1,759 5,006 90 Agricultural & Farmland - - - - - Residential Real Estate 1,056 1,013 167 1,084 45 Consumer & Other 374 374 37 385 22 Totals: Commercial & Industrial $ 126 $ 1,214 $ - $ 1,388 $ - Commercial RE & Construction $ 5,754 $ 6,003 $ 1,759 $ 6,212 $ 117 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,713 $ 1,670 $ 167 $ 1,946 $ 97 Consumer & Other $ 464 $ 464 $ 37 $ 492 $ 31 All Impaired Loans < $100,000 $ 131 $ 131 $ - $ 131 $ - Nine Months Ended Three Months Ended Average Recorded Interest Income Average Recorded Interest Income September 30, 2015 Investment Recognized Investment Recognized With no related allowance recorded: Commercial & Industrial $ 316 $ - $ 316 $ - Commercial RE & Construction 704 25 797 6 Agricultural & Farmland - - - - Residential Real Estate 673 38 859 8 Consumer & Other 114 7 125 3 All Impaired Loans < $100,000 344 - 344 - With a specific allowance recorded: Commercial & Industrial 19 - 1,080 - Commercial RE & Construction 4,949 13 1,954 3 Agricultural & Farmland - - - - Residential Real Estate 1,025 33 1,080 10 Consumer & Other 337 17 362 5 Totals: Commercial & Industrial $ 335 $ - $ 1,396 $ - Commercial RE & Construction $ 5,653 $ 38 $ 2,751 $ 9 Agricultural & Farmland $ - $ - $ - $ - Residential Real Estate $ 1,698 $ 71 $ 1,939 $ 18 Consumer & Other $ 451 $ 24 $ 487 $ 8 All Impaired Loans < $100,000 $ 344 $ - $ 344 $ - 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 nine months ended September 30, 2016 and 2015. Three Months ended Sep. 30, 2016 ($ in thousands) Number of Loans Pre- Modification Post Modification Residential Real Estate - $ - $ - Commercial 1 309 309 Consumer & Other - - - Total Modifications 1 $ 309 $ 309 Interest Total Only Term Combination Modification Residential Real Estate $ - $ - $ - $ - Commercial - 309 - 309 Consumer & Other - - - - Total Modifications $ - $ 309 $ - $ 309 There was no increase in the allowance for loan losses due to TDR's in the three month period ended Sep. 30, 2016. Nine Months ended Sep. 30, 2016 ($ in thousands) Number of Loans Pre- Modification Post Modification Residential Real Estate - $ - $ - Commercial 1 309 309 Consumer & Other 1 221 221 Total Modifications 2 $ 530 $ 530 Interest Total Only Term Combination Modification Residential Real Estate $ - $ - $ - $ - Commercial - 309 - 309 Consumer & Other - 221 - 221 Total Modifications $ - $ 530 $ - $ 530 There was no increase in the allowance for loan losses due to TDR's in the nine month period ended Sep. 30, 2016. Three Months ended Sep. 30, 2015 ($ in thousands) Number of Loans Pre- Modification Recorded Balance Post Modification Recorded Balance Residential Real Estate - $ - $ - Commercial - - - Consumer & Other - - - Total Modifications - $ - $ - Interest Total Only Term Combination Modification Residential Real Estate $ - $ - $ - $ - Consumer & Other - - - - Total Modifications $ - $ - $ - $ - There was no increase in the allowance for loan losses due to TDR's in the three month period ended Sep. 30, 2015. Nine Months ended Sep. 30, 2015 ($ in thousands) Number of Loans Pre- Modification Post Modification Residential Real Estate 1 $ 24 $ 24 Consumer & Other - - - Total Modifications 1 $ 24 $ 24 Interest Total Only Term Combination Modification Residential Real Estate $ - $ 24 $ - $ 24 Consumer & Other - - - - Total Modifications $ - $ 24 $ - $ 24 There was no increase in the allowance for loan losses due to TDR's in the nine month period ended Sep. 30, 2015. TDR's modified in 2016 that have subsequently defaulted Number of Recorded ($ in thousands) Contracts Balance Consumer & Other 1 $ 221 1 221 There were no TDR's modified during 2015 that have subsequently defaulted. |
Derivative Financial Instrument
Derivative Financial Instruments and Repurchase Agreements | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Financial Instruments and Repurchase Agreements [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND REPURCHASE AGREEMENTS | NOTE 5 – DERIVATIVE FINANCIAL INSTRUMENTS AND REPURCHASE AGREEMENTS 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 September 30, 2016 and December 31, 2015, the notional amount of customer-facing swaps was approximately $30.1 million and $17.6 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 September 30, 2016 and December 31, 2015, the Company had posted cash as collateral in the amount of $1.6 million and $0.7 million, respectively. The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the Balance Sheet, as of September 30, 2016 and December 31, 2015. Asset Derivatives Liability Derivatives September 30, 2016 September 30, 2016 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 1,396 Other Liabilities $ 1,396 Asset Derivatives Liability Derivatives December 31, 2015 December 31, 2015 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 490 Other Liabilities $ 490 The Company’s derivative financial instruments had no net effect on the Income Statements for the three and nine months ended September 30, 2016 and 2015. Securities Sold Under Repurchase Agreements State Bank has retail repurchase agreements to facilitate cash management transactions with commercial customers. These obligations are secured by agency and mortgage-backed securities and such collateral is held by the Federal Home Loan Bank. The agreements mature within one month. These repurchase agreements are secured by agency securities and mortgage-backed securities with corresponding liabilities of $5.7 million and of $14.9 million. These securities have various maturity dates beyond 2017. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 and December 31, 2015. Fair Value Measurements Using: ($ in thousands) Available-for-Sale Securities: Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 14,033 $ - $ 14,033 $ - Mortgage-backed securities 62,760 - 62,760 - State and political subdivisions 15,873 - 15,873 - Equity securities 23 - 23 - Interest rate contracts - assets 1,396 - 1,396 - Interest rate contracts - liabilities (1,396 ) - (1,396 ) - Fair Value Measurements Using: ($ in thousands) Available-for-Sale Securities: Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 10,905 $ - $ 10,905 $ - Mortgage-backed securities 61,343 - 61,343 - State and political subdivisions 17,518 - 17,518 - Equity securities 23 23 - Interest rate contracts - assets 490 490 - Interest rate contracts - liabilities (490 ) (490 ) - 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, 2016 and December 31, 2015. 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. Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. ($ in thousands) Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 1,188 $ - $ - $ 1,188 Mortgage Servicing Rights 7,125 $ - $ - 7,125 ($ in thousands) Description Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 3,011 $ - $ - $ 3,011 Mortgage Servicing Rights 2,585 $ - $ - 2,585 Level 1 - Quoted Prices in Active Markets for Identical Assets Level 2 - Significant Other Observable Inputs Level 3 - Significant Unobservable Inputs ($'s in thousands) Fair Value at Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 1,188 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 7,125 Discounted cash flow Discount Rate 9.03 % Constant prepayment rate 14.45 % P&I earnings credit 0.53 % T&I earnings credit 1.14 % Inflation for cost of servicing 1.50 % ($'s in thousands) Fair Value at Valuation Technique Unobservable Inputs Range Collateral-dependent impaired loans $ 3,011 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 2,585 Discounted cash flow Discount Rate 9.75 % Constant prepayment rate 8.90 % P&I earnings credit 0.42 % T&I earnings credit 1.54 % Inflation for cost of servicing 1.50 % There were no changes in the inputs or methodologies used to determine fair value at September 30, 2016 as compared to December 31, 2015. 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 September 30, 2016 and December 31, 2015, 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 September 30, 2016 and December 31, 2015. 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 September 30, 2016 and December 31, 2015 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. September 30, Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 25,167 $ 25,167 $ - $ - Loans held for sale 5,865 - 6,053 - Loans, net of allowance for loan losses 612,032 - - 612,961 Federal Reserve and FHLB Bank stock 3,748 - 3,748 - Mortgage Servicing Rights 6,887 - - 6,947 Accrued interest receivable 1,641 - 1,641 - Financial liabilities Deposits $ 662,144 $ 116,976 $ 548,360 $ - FHLB Advances 23,000 - 23,143 - Short-term borrowings 11,363 - 11,363 - Trust preferred securities 10,310 - 8,015 - Accrued interest payable 427 - 427 - December 31, Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 20,459 $ 20,459 $ - $ - Loans held for sale 7,516 - 7,779 - Loans, net of allowance for loan losses 550,669 - - 548,154 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Mortgage Servicing Rights 7,152 - - 7,760 Accrued interest receivable 1,260 - 1,260 - Financial liabilities Deposits $ 586,453 $ 113,113 $ 475,468 $ - FHLB advances 35,000 - 34,870 - Short-term borrowings 12,406 - 12,406 - Trust preferred securities 10,310 - 7,165 - Accrued interest payable 264 - 264 - |
General Litigation
General Litigation | 9 Months Ended |
Sep. 30, 2016 | |
General Litigation [Abstract] | |
GENERAL LITIGATION | NOTE 7 – GENERAL LITIGATION The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. Additionally, the Company is subject to periodic examinations by various regulatory agencies. It is the opinion of management that the disposition or ultimate resolution of such claims, lawsuits and examinations will not have a material adverse effect on the consolidated financial position, results of operations and cash flow of the Company. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Summary of earnings per share | Three Months Ended ($ in thousands - except per share data) 2016 2015 Distributed earnings allocated to common shares $ 295 $ 246 Undistributed earnings allocated to common shares 2,005 1,773 Net earnings allocated to common shares 2,300 2,019 Net earnings allocated to participating securities 3 1 Dividends on convertible preferred shares 244 244 Net Income allocated to common shares and participating securities $ 2,547 $ 2,264 Weighted average shares outstanding for basic earnings per share 4,874 4,884 Dilutive effect of stock compensation 47 55 Dilutive effect of convertible shares 1,455 1,451 Weighted average shares outstanding for diluted earnings per share 6,376 6,390 Basic earnings per common share $ 0.47 $ 0.41 Diluted earnings per common share $ 0.40 $ 0.35 Nine Months Ended ($ in thousands - except per share data) 2016 2015 Distributed earnings allocated to common shares $ 862 $ 713 Undistributed earnings allocated to common shares 4,868 4,322 Net earnings allocated to common shares 5,730 5,035 Net earnings allocated to participating securities 6 4 Dividends on convertible preferred shares 731 712 Net Income allocated to common shares and participating securities $ 6,467 $ 5,751 Weighted average shares outstanding for basic earnings per share 4,888 4,882 Dilutive effect of stock compensation 41 89 Dilutive effect of convertible shares 1,455 1,451 Weighted average shares outstanding for diluted earnings per share 6,384 6,422 Basic earnings per common share $ 1.17 $ 1.03 Diluted earnings per common share $ 1.01 $ 0.89 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Securities [Abstract] | |
Summary of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities | Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: September 30, 2016 U.S. Treasury and Government agencies $ 13,920 $ 115 $ (2 ) $ 14,033 Mortgage-backed securities 61,882 905 (27 ) 62,760 State and political subdivisions 14,990 884 (1 ) 15,873 Equity securities 23 - - 23 $ 90,815 $ 1,904 $ (30 ) $ 92,689 Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: December 31, 2015: U.S. Treasury and Government agencies $ 10,804 $ 101 $ - $ 10,905 Mortgage-backed securities 61,459 311 (427 ) 61,343 State and political subdivisions 16,519 999 - 17,518 Equity securities 23 - - 23 $ 88,805 $ 1,411 $ (427 ) $ 89,789 |
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 $ 442 $ 447 Due after one year through five years 7,473 7,696 Due after five years through ten years 6,836 7,143 Due after ten years 14,159 14,620 28,910 29,906 Mortgage-backed securities & equity securities 61,905 62,783 Totals $ 90,815 $ 92,689 |
Summary of securities with unrealized losses | ($ in thousands) Less than 12 Months 12 Months or Longer Total September 30, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: U.S. Treasury and Government agencies $ 2,598 $ (2 ) $ - $ - $ 2,598 $ (2 ) Mortgage-backed securities $ 882 $ (16 ) $ 4,011 $ (11 ) $ 4,893 $ (27 ) State and Political subdivisions $ 796 $ (1 ) $ 0 $ 0 $ 796 $ (1 ) $ 4,276 $ (19 ) $ 4,011 $ (11 ) $ 8,287 $ (30 ) ($ in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2015 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: Mortgage-backed securities $ 30,184 $ (253 ) $ 7,061 $ (174 ) $ 37,245 $ (427 ) $ 30,184 $ (253 ) $ 7,061 $ (174 ) $ 37,245 $ (427 ) |
Loans and Allowance for Loan 17
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Loans and Allowance for Loan Losses [Abstract] | |
Summary of categories of loans | Total Loans Non-Accrual Loans ($ in thousands) Sept. 2016 Dec. 2015 Sept. 2016 Dec. 2015 Commercial & Industrial $ 100,951 $ 86,542 146 188 Commercial RE & Construction 268,408 242,208 1,393 5,670 Agricultural & Farmland 54,609 43,835 5 7 Residential Real Estate 139,757 130,806 1,152 749 Consumer & Other 55,333 54,224 193 32 Total Loans $ 619,058 $ 557,615 $ 2,889 $ 6,646 Unearned Income $ 294 $ 44 Total Loans, net of unearned income $ 619,352 $ 557,659 Allowance for loan losses $ (7,320 ) $ (6,990 ) |
Summary of allowance for loan losses and recorded investment in loans based on portfolio segment and impairment method | Commercial Commercial Agricultural Residential Consumer & Industrial Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Three Months Ended - September 30, 2016 Beginning balance $ 1,137 $ 4,126 $ 189 $ 1,342 $ 656 $ 7,450 Charge Offs (42 ) (30 ) - - (64 ) $ (136 ) Recoveries 1 - 1 1 3 6 Provision 155 (960 ) 142 460 203 - Ending Balance $ 1,251 $ 3,136 $ 332 $ 1,803 $ 798 $ 7,320 For the Nine Months Ended - September 30, 2016 Beginning balance $ 914 $ 3,886 $ 204 $ 1,312 $ 674 $ 6,990 Charge Offs (134 ) (30 ) - - (68 ) $ (232 ) Recoveries 248 6 2 1 55 312 Provision 223 (726 ) 126 490 137 250 Ending Balance $ 1,251 $ 3,136 $ 332 $ 1,803 $ 798 $ 7,320 Loans Receivable at September 30, 2016 Allowance: Ending balance: individually evaluated for impairment $ - $ 127 $ - $ 148 $ 19 $ 294 Ending balance: collectively evaluated for impairment $ 1,251 $ 3,009 $ 332 $ 1,655 $ 779 $ 7,026 Loans: Ending balance: individually evaluated for impairment $ - $ 1,772 $ - $ 1,874 $ 346 $ 3,992 Ending balance: collectively evaluated for impairment $ 100,951 $ 266,636 $ 54,609 $ 137,883 $ 54,987 $ 615,066 Commercial Commercial Agricultural Residential Consumer ($'s in thousands) & Industrial Construction & Farmland Real Estate & Other Total Loans Receivable at December 31, 2015 Allowance: Ending balance: individually evaluated for impairment $ - $ 1,759 $ - $ 167 $ 37 $ 1,963 Ending balance: collectively evaluated for impairment $ 914 $ 2,127 $ 204 $ 1,145 $ 637 $ 5,027 Loans: Ending balance: individually evaluated for impairment $ 126 $ 5,754 $ - $ 1,713 $ 464 $ 8,057 Ending balance: collectively evaluated for impairment $ 86,416 $ 236,454 $ 43,835 $ 129,093 $ 53,760 $ 549,558 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 - September 30, 2015 Beginning balance $ 1,488 $ 3,066 $ 261 $ 1,410 $ 781 $ 7,006 Charge Offs - (53 ) - (4 ) (1 ) $ (58 ) Recoveries 1 - 1 23 4 29 Provision (621 ) 997 (40 ) (154 ) (82 ) 100 Ending Balance $ 868 $ 4,010 $ 222 $ 1,275 $ 702 $ 7,076 For the Nine Months Ended - September 30, 2015 Beginning balance $ 1,630 $ 2,857 $ 208 $ 1,308 $ 768 $ 6,771 Charge Offs (309 ) (303 ) - (65 ) (34 ) $ (711 ) Recoveries 22 3 3 28 10 66 Provision (475 ) 1,453 11 4 (43 ) 950 Ending Balance $ 868 $ 4,010 $ 222 $ 1,275 $ 701 $ 7,076 |
Summary of credit risk profile of the Company's loan portfolio based on rating category | September 30, 2016 Commercial Commercial Agricultural Residential Consumer ($ in thousands) & Industrial Construction & Farmland Real Estate & Other Total 1-2 $ 1,207 $ 44 $ 40 $ 338 $ 4 $ 1,633 3 27,841 84,276 9,661 111,581 52,185 285,544 4 71,312 176,270 44,908 25,801 2,824 321,115 Total Pass (1 - 4) 100,360 260,590 54,609 137,720 55,013 608,292 Special Mention (5) - 4,419 - 566 62 5,047 Substandard (6) 150 2,006 - 408 64 2,628 Doubtful (7) 441 1,394 - 1,063 193 3,091 Loss (8) - - - - - - Total Loans $ 100,951 $ 268,408 $ 54,609 $ 139,757 $ 55,333 $ 619,058 December 31, 2015 Commercial Commercial RE & Agricultural Residential Consumer ($ in thousands) & Industrial Construction & Farmland Real Estate & Other Total 1-2 $ 709 $ 767 $ 47 $ - $ 15 $ 1,538 3 23,362 79,915 8,195 118,463 50,745 280,680 4 61,799 149,473 35,593 10,418 3,223 260,506 Total Pass (1 - 4) 85,870 230,155 43,835 128,881 53,983 542,724 Special Mention (5) 330 5,260 - 756 70 6,416 Substandard (6) 110 1,072 - 420 139 1,741 Doubtful (7) 232 5,721 - 749 32 6,734 Loss (8) - - - - - - Total Loans $ 86,542 $ 242,208 $ 43,835 $ 130,806 $ 54,224 $ 557,615 |
Summary of loan portfolio aging analysis | ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans September 30, 2016 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ - $ - $ 110 $ 110 $ 100,841 $ 100,951 Commercial RE & Construction 56 909 1,135 2,100 266,308 268,408 Agricultural & Farmland - - - - 54,609 54,609 Residential Real Estate - 55 233 288 139,469 139,757 Consumer & Other 17 51 181 249 55,084 55,333 Total Loans $ 73 $ 1,015 $ 1,659 $ 2,747 $ 616,311 $ 619,058 ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans December 31, 2015 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ - $ 60 $ 188 $ 248 $ 86,294 $ 86,542 Commercial RE & Construction 99 - 5,280 5,379 236,829 242,208 Agricultural & Farmland - - - - 43,835 43,835 Residential Real Estate 98 198 156 452 130,354 130,806 Consumer & Other 64 - 2 66 54,158 54,224 Total Loans $ 261 $ 258 $ 5,626 $ 6,145 $ 551,470 $ 557,615 |
Summary of impaired loan activity | Nine Months Ended September 30, 2016 Recorded Unpaid Principal Related Average Recorded Interest Income ($'s in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction 637 637 - 658 16 Agricultural & Farmland - - - - - Residential Real Estate 987 1,031 - 1,195 51 Consumer & Other 20 78 - 94 6 All Impaired Loans < $100,000 398 398 - 398 - With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction 1,135 1,385 127 1,404 - Agricultural & Farmland - - - - - Residential Real Estate 887 887 148 957 29 Consumer & Other 268 268 19 272 11 Totals: Commercial & Industrial $ - $ - $ - $ - $ - Commercial RE & Construction $ 1,772 $ 2,022 $ 127 $ 2,062 $ 16 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,874 $ 1,918 $ 148 $ 2,152 $ 80 Consumer & Other $ 346 $ 346 $ 19 $ 366 $ 17 All Impaired Loans < $100,000 $ 398 $ 398 $ - $ 398 $ - Three Months Ended September 30, 2016 Average Recorded Interest Income ($'s in thousands) Investment Recognized With no related allowance recorded: Commercial & Industrial $ - $ - Commercial RE & Construction 647 6 Agricultural & Farmland - - Residential Real Estate 1,186 17 Consumer & Other 89 2 All Impaired Loans < $100,000 438 - With a specific allowance recorded: Commercial & Industrial - - Commercial RE & Construction 1,404 - Agricultural & Farmland - - Residential Real Estate 945 10 Consumer & Other 267 2 Totals: Commercial & Industrial $ - $ - Commercial RE & Construction $ 2,051 $ 6 Agricultural & Farmland $ - $ - Residential Real Estate $ 2,131 $ 27 Consumer & Other $ 356 $ 4 All Impaired Loans < $100,000 $ 438 $ - Twelve Months Ended December 31, 2015 Recorded Unpaid Principal Related Average Recorded Interest Income ($'s in thousands) Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & Industrial $ 126 $ 1,214 $ - $ 1,388 $ - Commercial RE & Construction 1,110 1,110 - 1,206 27 Agricultural & Farmland - - - - - Residential Real Estate 657 657 - 862 52 Consumer & Other 90 90 - 107 9 All Impaired Loans < $100,000 131 131 - 131 - With a specific allowance recorded: Commercial & Industrial - - - - - Commercial RE & Construction 4,644 4,893 1,759 5,006 90 Agricultural & Farmland - - - - - Residential Real Estate 1,056 1,013 167 1,084 45 Consumer & Other 374 374 37 385 22 Totals: Commercial & Industrial $ 126 $ 1,214 $ - $ 1,388 $ - Commercial RE & Construction $ 5,754 $ 6,003 $ 1,759 $ 6,212 $ 117 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,713 $ 1,670 $ 167 $ 1,946 $ 97 Consumer & Other $ 464 $ 464 $ 37 $ 492 $ 31 All Impaired Loans < $100,000 $ 131 $ 131 $ - $ 131 $ - Nine Months Ended Three Months Ended Average Recorded Interest Income Average Recorded Interest Income September 30, 2015 Investment Recognized Investment Recognized With no related allowance recorded: Commercial & Industrial $ 316 $ - $ 316 $ - Commercial RE & Construction 704 25 797 6 Agricultural & Farmland - - - - Residential Real Estate 673 38 859 8 Consumer & Other 114 7 125 3 All Impaired Loans < $100,000 344 - 344 - With a specific allowance recorded: Commercial & Industrial 19 - 1,080 - Commercial RE & Construction 4,949 13 1,954 3 Agricultural & Farmland - - - - Residential Real Estate 1,025 33 1,080 10 Consumer & Other 337 17 362 5 Totals: Commercial & Industrial $ 335 $ - $ 1,396 $ - Commercial RE & Construction $ 5,653 $ 38 $ 2,751 $ 9 Agricultural & Farmland $ - $ - $ - $ - Residential Real Estate $ 1,698 $ 71 $ 1,939 $ 18 Consumer & Other $ 451 $ 24 $ 487 $ 8 All Impaired Loans < $100,000 $ 344 $ - $ 344 $ - |
Summary of newly restructured loans by type of modification | Three Months ended Sep. 30, 2016 ($ in thousands) Number of Loans Pre- Modification Post Modification Residential Real Estate - $ - $ - Commercial 1 309 309 Consumer & Other - - - Total Modifications 1 $ 309 $ 309 Interest Total Only Term Combination Modification Residential Real Estate $ - $ - $ - $ - Commercial - 309 - 309 Consumer & Other - - - - Total Modifications $ - $ 309 $ - $ 309 Nine Months ended Sep. 30, 2016 ($ in thousands) Number of Loans Pre- Modification Post Modification Residential Real Estate - $ - $ - Commercial 1 309 309 Consumer & Other 1 221 221 Total Modifications 2 $ 530 $ 530 Interest Total Only Term Combination Modification Residential Real Estate $ - $ - $ - $ - Commercial - 309 - 309 Consumer & Other - 221 - 221 Total Modifications $ - $ 530 $ - $ 530 Three Months ended Sep. 30, 2015 ($ in thousands) Number of Loans Pre- Modification Recorded Balance Post Modification Recorded Balance Residential Real Estate - $ - $ - Commercial - - - Consumer & Other - - - Total Modifications - $ - $ - Interest Total Only Term Combination Modification Residential Real Estate $ - $ - $ - $ - Consumer & Other - - - - Total Modifications $ - $ - $ - $ - Nine Months ended Sep. 30, 2015 ($ in thousands) Number of Loans Pre- Modification Post Modification Residential Real Estate 1 $ 24 $ 24 Consumer & Other - - - Total Modifications 1 $ 24 $ 24 Interest Total Only Term Combination Modification Residential Real Estate $ - $ 24 $ - $ 24 Consumer & Other - - - - Total Modifications $ - $ 24 $ - $ 24 |
Summary of troubled debt restructurings modified subsequently defaulted | Number of Recorded ($ in thousands) Contracts Balance Consumer & Other 1 $ 221 1 221 |
Derivative Financial Instrume18
Derivative Financial Instruments and Repurchase Agreements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Financial Instruments and Repurchase Agreements [Abstract] | |
Schedule of fair values of derivative instruments on the balance sheet | Asset Derivatives Liability Derivatives September 30, 2016 September 30, 2016 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 1,396 Other Liabilities $ 1,396 Asset Derivatives Liability Derivatives December 31, 2015 December 31, 2015 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 490 Other Liabilities $ 490 |
Fair Value of Assets and Liab19
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value of Assets and Liabilities [Abstract] | |
Summary of fair value measurements of assets measured at fair value on a recurring basis | ($ in thousands) Available-for-Sale Securities: Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 14,033 $ - $ 14,033 $ - Mortgage-backed securities 62,760 - 62,760 - State and political subdivisions 15,873 - 15,873 - Equity securities 23 - 23 - Interest rate contracts - assets 1,396 - 1,396 - Interest rate contracts - liabilities (1,396 ) - (1,396 ) - ($ in thousands) Available-for-Sale Securities: Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 10,905 $ - $ 10,905 $ - Mortgage-backed securities 61,343 - 61,343 - State and political subdivisions 17,518 - 17,518 - Equity securities 23 23 - Interest rate contracts - assets 490 490 - Interest rate contracts - liabilities (490 ) (490 ) - |
Summary of fair value measurements of assets measured at fair value on a nonrecurring basis | ($ in thousands) Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 1,188 $ - $ - $ 1,188 Mortgage Servicing Rights 7,125 $ - $ - 7,125 ($ in thousands) Description Fair Values at (Level 1) (Level 2) (Level 3) Impaired loans $ 3,011 $ - $ - $ 3,011 Mortgage Servicing Rights 2,585 $ - $ - 2,585 |
Summary of quantitative information about unobservable inputs used in recurring and nonrecurring | ($'s in thousands) Fair Value at Valuation Unobservable Inputs Range Collateral-dependent impaired loans $ 1,188 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 7,125 Discounted cash flow Discount Rate 9.03 % Constant prepayment rate 14.45 % P&I earnings credit 0.53 % T&I earnings credit 1.14 % Inflation for cost of servicing 1.50 % ($'s in thousands) Fair Value at Valuation Technique Unobservable Inputs Range Collateral-dependent impaired loans $ 3,011 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 2,585 Discounted cash flow Discount Rate 9.75 % Constant prepayment rate 8.90 % P&I earnings credit 0.42 % T&I earnings credit 1.54 % Inflation for cost of servicing 1.50 % |
Summary of estimated fair values of company's financial instruments | September 30, Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $ 25,167 $ 25,167 $ - $ - Loans held for sale 5,865 - 6,053 - Loans, net of allowance for loan losses 612,032 - - 612,961 Federal Reserve and FHLB Bank stock 3,748 - 3,748 - Mortgage Servicing Rights 6,887 - - 6,947 Accrued interest receivable 1,641 - 1,641 - Financial liabilities Deposits $ 662,144 $ 116,976 $ 548,360 $ - FHLB Advances 23,000 - 23,143 - Short-term borrowings 11,363 - 11,363 - Trust preferred securities 10,310 - 8,015 - Accrued interest payable 427 - 427 - December 31, Fair Value Measurements Using Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 20,459 $ 20,459 $ - $ - Loans held for sale 7,516 - 7,779 - Loans, net of allowance for loan losses 550,669 - - 548,154 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Mortgage Servicing Rights 7,152 - - 7,760 Accrued interest receivable 1,260 - 1,260 - Financial liabilities Deposits $ 586,453 $ 113,113 $ 475,468 $ - FHLB advances 35,000 - 34,870 - Short-term borrowings 12,406 - 12,406 - Trust preferred securities 10,310 - 7,165 - Accrued interest payable 264 - 264 - |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Distributed earnings allocated to common shares | $ 295 | $ 246 | $ 862 | $ 713 |
Undistributed earnings allocated to common shares | 2,005 | 1,773 | 4,868 | 4,322 |
Net earnings allocated to common shares | 2,300 | 2,019 | 5,730 | 5,035 |
Net earnings allocated to participating securities | 3 | 1 | 6 | 4 |
Dividends on convertible preferred shares | 244 | 244 | 731 | 712 |
Net Income allocated to common shares and participating securities | $ 2,547 | $ 2,264 | $ 6,467 | $ 5,751 |
Weighted average shares outstanding for basic earnings per share | 4,874 | 4,884 | 4,888 | 4,882 |
Dilutive effect of stock compensation | 47 | 55 | 41 | 89 |
Dilutive effect of convertible shares | 1,455 | 1,451 | 1,455 | 1,451 |
Weighted average shares outstanding for diluted earnings per share | 6,376 | 6,390 | 6,384 | 6,422 |
Basic earnings per common share | $ 0.47 | $ 0.41 | $ 1.17 | $ 1.03 |
Diluted earnings per common share | $ 0.4 | $ 0.35 | $ 1.01 | $ 0.89 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings per share (Textual) | ||
Common shares excluded from computation of diluted EPS | 0 | 50,424 |
Conversion of depository shares | 1,500,000 | |
Conversion of common stock, shares | 454,702 |
Securities (Details)
Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | $ 90,815 | $ 92,689 |
Gross Unrealized Gains | 1,904 | 1,411 |
Gross Unrealized Losses | (30) | (427) |
Fair Value | 92,689 | 89,789 |
U.S. Treasury and Government agencies [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 13,920 | 10,804 |
Gross Unrealized Gains | 115 | 101 |
Gross Unrealized Losses | (2) | |
Fair Value | 14,033 | 10,905 |
Mortgage-backed securities [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 61,882 | 61,459 |
Gross Unrealized Gains | 905 | 311 |
Gross Unrealized Losses | (27) | (427) |
Fair Value | 62,760 | 61,343 |
State and political subdivisions [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 14,990 | 16,519 |
Gross Unrealized Gains | 884 | 999 |
Gross Unrealized Losses | (1) | |
Fair Value | 15,873 | 17,518 |
Equity securities [Member] | ||
Summary of amortized cost and approximate fair values of securities | ||
Amortized Cost | 23 | 23 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 23 | $ 23 |
Securities (Details 1)
Securities (Details 1) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Summary of amortized cost and fair value of securities available for sale by contractual maturity | ||
Available for Sale Amortized Cost, Within one year | $ 442 | |
Available for Sale Amortized Cost, Due after one year through five years | 7,473 | |
Available for Sale Amortized Cost, Due after five years through ten years | 6,836 | |
Available for Sale Amortized Cost, Due after ten years | 14,159 | |
Available for Sale Amortized Cost | 28,910 | |
Available for Sale, Amortized Cost, Mortgage-backed securities & equity securities | 61,905 | |
Available for Sale, Amortized Cost, Totals | 90,815 | $ 92,689 |
Available for Sale Fair Value, Within one year | 447 | |
Available for Sale Fair Value, Due after one year through five years | 7,696 | |
Available for Sale Fair Value, Due after five years through ten years | 7,143 | |
Available for Sale Fair Value, Due after ten years | 14,620 | |
Available for Sale Fair Value | 29,906 | |
Available for Sale, Fair Value, Mortgage-backed securities & equity securities | 62,783 | |
Available for Sale, Fair Value, Totals | $ 92,689 | $ 89,789 |
Securities (Details 2)
Securities (Details 2) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of securities with unrealized losses | ||
Less than 12 Months, Fair Value | $ 4,276 | $ 30,184 |
Less than 12 Months, Unrealized Losses | (19) | (253) |
12 Months or Longer, Fair Value | 4,011 | 7,061 |
12 Months or Longer, Unrealized Losses | (11) | (174) |
Total, Fair Value | 8,287 | 37,245 |
Total, Unrealized Losses | (30) | (427) |
U.S. Treasury and Government Agencies [Member] | ||
Schedule of securities with unrealized losses | ||
Less than 12 Months, Fair Value | 2,598 | |
Less than 12 Months, Unrealized Losses | (2) | |
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Total, Fair Value | 2,598 | |
Total, Unrealized Losses | (2) | |
Mortgage-backed securities [Member] | ||
Schedule of securities with unrealized losses | ||
Less than 12 Months, Fair Value | 882 | 30,184 |
Less than 12 Months, Unrealized Losses | (16) | (253) |
12 Months or Longer, Fair Value | 4,011 | 7,061 |
12 Months or Longer, Unrealized Losses | (11) | (174) |
Total, Fair Value | 4,893 | 37,245 |
Total, Unrealized Losses | (27) | $ (427) |
State and political subdivisions [Member] | ||
Schedule of securities with unrealized losses | ||
Less than 12 Months, Fair Value | 796 | |
Less than 12 Months, Unrealized Losses | (1) | |
12 Months or Longer, Fair Value | 0 | |
12 Months or Longer, Unrealized Losses | 0 | |
Total, Fair Value | 796 | |
Total, Unrealized Losses | $ (1) |
Securities (Details Textual)
Securities (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Securities (Textual) | ||
Fair value of securities pledged as collateral | $ 76,600 | $ 42,600 |
Securities delivered for repurchase agreements | 15,800 | 15,800 |
Gross gains realized from sales of available-for-sale securities | 260 | |
Tax expense for net security gains | 90 | |
Total fair value of investments | $ 8,287 | $ 37,245 |
Fair value as a percentage of available-for-sale investment portfolio | 9.00% | 34.00% |
Unrealized loss on the securities portfolio | $ 30 | $ 430 |
Loans and Allowance for Loan 26
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Summary of categories of loans | ||
Total Loans | $ 619,058 | $ 557,615 |
Non-Accrual Loans | 2,889 | 6,646 |
Unearned Income | 294 | 44 |
Total Loans, net of unearned income | 619,352 | 557,659 |
Allowance for loan losses | (7,320) | (6,990) |
Commercial & Industrial [Member] | ||
Summary of categories of loans | ||
Total Loans | 100,951 | 86,542 |
Non-Accrual Loans | 146 | 188 |
Commercial RE & Construction [Member] | ||
Summary of categories of loans | ||
Total Loans | 268,408 | 242,208 |
Non-Accrual Loans | 1,393 | 5,670 |
Agricultural & Farmland [Member] | ||
Summary of categories of loans | ||
Total Loans | 54,609 | 43,835 |
Non-Accrual Loans | 5 | 7 |
Residential Real Estate [Member] | ||
Summary of categories of loans | ||
Total Loans | 139,757 | 130,806 |
Non-Accrual Loans | 1,152 | 749 |
Consumer & Other [Member] | ||
Summary of categories of loans | ||
Total Loans | 55,333 | 54,224 |
Non-Accrual Loans | $ 193 | $ 32 |
Loans and Allowance for Loan 27
Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | $ 7,450 | $ 7,006 | $ 6,990 | $ 6,771 | |
Charge Offs | (136) | (58) | (232) | (711) | |
Recoveries | 6 | 29 | 312 | 66 | |
Provision | 100 | 250 | 950 | ||
Ending Balance | 7,320 | 7,076 | 7,320 | 7,076 | |
Allowance: Ending balance: individually evaluated for impairment | 294 | 294 | $ 1,963 | ||
Allowance: Ending balance: collectively evaluated for impairment | 7,026 | 7,026 | 5,027 | ||
Loans: Ending balance individually evaluated for impairment | 3,992 | 3,992 | 8,057 | ||
Loans: Ending balance collectively evaluated for impairment | 615,066 | 615,066 | 549,558 | ||
Commercial & Industrial [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | 1,137 | 1,488 | 914 | 1,630 | |
Charge Offs | (42) | (134) | (309) | ||
Recoveries | 1 | 1 | 248 | 22 | |
Provision | 155 | (621) | 223 | (475) | |
Ending Balance | 1,251 | 868 | 1,251 | 868 | |
Allowance: Ending balance: individually evaluated for impairment | |||||
Allowance: Ending balance: collectively evaluated for impairment | 1,251 | 1,251 | 914 | ||
Loans: Ending balance individually evaluated for impairment | 126 | ||||
Loans: Ending balance collectively evaluated for impairment | 100,951 | 100,951 | 86,416 | ||
Commercial RE & Construction [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | 4,126 | 3,066 | 3,886 | 2,857 | |
Charge Offs | (30) | (53) | (30) | (303) | |
Recoveries | 6 | 3 | |||
Provision | (960) | 997 | (726) | 1,453 | |
Ending Balance | 3,136 | 4,010 | 3,136 | 4,010 | |
Allowance: Ending balance: individually evaluated for impairment | 127 | 127 | 1,759 | ||
Allowance: Ending balance: collectively evaluated for impairment | 3,009 | 3,009 | 2,127 | ||
Loans: Ending balance individually evaluated for impairment | 1,772 | 1,772 | 5,754 | ||
Loans: Ending balance collectively evaluated for impairment | 266,636 | 266,636 | 236,454 | ||
Agricultural & Farmland [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | 189 | 261 | 204 | 208 | |
Charge Offs | |||||
Recoveries | 1 | 1 | 2 | 3 | |
Provision | 142 | (40) | 126 | 11 | |
Ending Balance | 332 | 222 | 332 | 222 | |
Allowance: Ending balance: individually evaluated for impairment | |||||
Allowance: Ending balance: collectively evaluated for impairment | 332 | 332 | 204 | ||
Loans: Ending balance individually evaluated for impairment | |||||
Loans: Ending balance collectively evaluated for impairment | 54,609 | 54,609 | 43,835 | ||
Residential Real Estate [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | 1,342 | 1,410 | 1,312 | 1,308 | |
Charge Offs | (4) | (65) | |||
Recoveries | 1 | 23 | 1 | 28 | |
Provision | 460 | (154) | 490 | 4 | |
Ending Balance | 1,803 | 1,275 | 1,803 | 1,275 | |
Allowance: Ending balance: individually evaluated for impairment | 148 | 148 | 167 | ||
Allowance: Ending balance: collectively evaluated for impairment | 1,655 | 1,655 | 1,145 | ||
Loans: Ending balance individually evaluated for impairment | 1,874 | 1,874 | 1,713 | ||
Loans: Ending balance collectively evaluated for impairment | 137,883 | 137,883 | 129,093 | ||
Consumer & Other [Member] | |||||
Summary of balance of the allowance for loan losses and the recorded investment in loans | |||||
Beginning balance | 656 | 781 | 674 | 768 | |
Charge Offs | (64) | (1) | (68) | (34) | |
Recoveries | 3 | 4 | 55 | 10 | |
Provision | 203 | (82) | 137 | (43) | |
Ending Balance | 798 | $ 702 | 798 | $ 702 | |
Allowance: Ending balance: individually evaluated for impairment | 19 | 19 | 37 | ||
Allowance: Ending balance: collectively evaluated for impairment | 779 | 779 | 637 | ||
Loans: Ending balance individually evaluated for impairment | 346 | 346 | 464 | ||
Loans: Ending balance collectively evaluated for impairment | $ 54,987 | $ 54,987 | $ 53,760 |
Loans and Allowance for Loan 28
Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | $ 619,058 | $ 557,615 |
Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 1,633 | 1,538 |
Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 285,544 | 280,680 |
Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 321,115 | 260,506 |
Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 608,292 | 542,724 |
Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 5,047 | 6,416 |
Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 2,628 | 1,741 |
Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 3,091 | 6,734 |
Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Commercial & Industrial [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 100,951 | 86,542 |
Commercial & Industrial [Member] | Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 1,207 | 709 |
Commercial & Industrial [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 27,841 | 23,362 |
Commercial & Industrial [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 71,312 | 61,799 |
Commercial & Industrial [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 100,360 | 85,870 |
Commercial & Industrial [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 330 | |
Commercial & Industrial [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 150 | 110 |
Commercial & Industrial [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 441 | 232 |
Commercial & Industrial [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Commercial RE & Construction [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 268,408 | 242,208 |
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 | ||
Total Loans | 44 | 767 |
Commercial RE & Construction [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 84,276 | 79,915 |
Commercial RE & Construction [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 176,270 | 149,473 |
Commercial RE & Construction [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 260,590 | 230,155 |
Commercial RE & Construction [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 4,419 | 5,260 |
Commercial RE & Construction [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 2,006 | 1,072 |
Commercial RE & Construction [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 1,394 | 5,721 |
Commercial RE & Construction [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Agricultural & Farmland [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 54,609 | 43,835 |
Agricultural & Farmland [Member] | Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 40 | 47 |
Agricultural & Farmland [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 9,661 | 8,195 |
Agricultural & Farmland [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 44,908 | 35,593 |
Agricultural & Farmland [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 54,609 | 43,835 |
Agricultural & Farmland [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Agricultural & Farmland [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Agricultural & Farmland [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Agricultural & Farmland [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Residential Real Estate [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 139,757 | 130,806 |
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 | ||
Total Loans | 338 | |
Residential Real Estate [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 111,581 | 118,463 |
Residential Real Estate [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 25,801 | 10,418 |
Residential Real Estate [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 137,720 | 128,881 |
Residential Real Estate [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 566 | 756 |
Residential Real Estate [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 408 | 420 |
Residential Real Estate [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 1,063 | 749 |
Residential Real Estate [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | ||
Consumer & Other [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 55,333 | 54,224 |
Consumer & Other [Member] | Loan Grade 1-2 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 4 | 15 |
Consumer & Other [Member] | Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 52,185 | 50,745 |
Consumer & Other [Member] | Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 2,824 | 3,223 |
Consumer & Other [Member] | Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 55,013 | 53,983 |
Consumer & Other [Member] | Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 62 | 70 |
Consumer & Other [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 64 | 139 |
Consumer & Other [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 193 | 32 |
Consumer & Other [Member] | Loss [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans |
Loans and Allowance for Loan 29
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 2,747 | $ 6,145 |
Current | 616,311 | 551,470 |
Total Loans Receivable | 619,058 | 557,615 |
30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 73 | 261 |
60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 1,015 | 258 |
Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 1,659 | 5,626 |
Commercial & Industrial [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 110 | 248 |
Current | 100,841 | 86,294 |
Total Loans Receivable | 100,951 | 86,542 |
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 | 60 | |
Commercial & Industrial [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 110 | 188 |
Commercial RE & Construction [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 2,100 | 5,379 |
Current | 266,308 | 236,829 |
Total Loans Receivable | 268,408 | 242,208 |
Commercial RE & Construction [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 56 | 99 |
Commercial RE & Construction [Member] | 60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 909 | |
Commercial RE & Construction [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 1,135 | 5,280 |
Agricultural & Farmland [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | ||
Current | 54,609 | 43,835 |
Total Loans Receivable | 54,609 | 43,835 |
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 [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | ||
Residential Real Estate [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 288 | 452 |
Current | 139,469 | 130,354 |
Total Loans Receivable | 139,757 | 130,806 |
Residential Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 98 | |
Residential Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 55 | 198 |
Residential Real Estate [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 233 | 156 |
Consumer & Other [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 249 | 66 |
Current | 55,084 | 54,158 |
Total Loans Receivable | 55,333 | 54,224 |
Consumer & Other [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 17 | 64 |
Consumer & Other [Member] | 60 to 89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 51 | |
Consumer & Other [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 181 | $ 2 |
Loans and Allowance for Loan 30
Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Commercial & Industrial [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | $ 126 | ||||
With no related allowance recorded, Unpaid Principal Balance | 1,214 | ||||
With no related allowance recorded, Average Recorded Investment | $ 316 | $ 316 | 1,388 | ||
With no related allowance recorded, Interest Income Recognized | |||||
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 | 1,080 | 19 | |||
With a specific allowance recorded, Interest Income Recognized | |||||
Total Recorded Investment | 126 | ||||
Total Unpaid Principal Balance | 1,214 | ||||
Total Related Allowance | |||||
Total Average Recorded Investment | 1,396 | 335 | 1,388 | ||
Total Interest Income Recognized | |||||
Commercial RE & Construction [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | 637 | 637 | 1,110 | ||
With no related allowance recorded, Unpaid Principal Balance | 637 | 637 | 1,110 | ||
With no related allowance recorded, Average Recorded Investment | 647 | 797 | 658 | 704 | 1,206 |
With no related allowance recorded, Interest Income Recognized | 6 | 6 | 16 | 25 | 27 |
With a specific allowance recorded, Recorded Investment | 1,135 | 1,135 | 4,644 | ||
With a specific allowance recorded, Unpaid Principal Balance | 1,385 | 1,385 | 4,893 | ||
With a specific allowance recorded, Related Allowance | 127 | 127 | 1,759 | ||
With a specific allowance recorded, Average Recorded Investment | 1,404 | 1,954 | 1,404 | 4,949 | 5,006 |
With a specific allowance recorded, Interest Income Recognized | 3 | 13 | 90 | ||
Total Recorded Investment | 1,772 | 1,772 | 5,754 | ||
Total Unpaid Principal Balance | 2,022 | 2,022 | 6,003 | ||
Total Related Allowance | 127 | 127 | 1,759 | ||
Total Average Recorded Investment | 2,051 | 2,751 | 2,062 | 5,653 | 6,212 |
Total Interest Income Recognized | 6 | 9 | 16 | 38 | 117 |
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 | |||||
With no related allowance recorded, Interest Income Recognized | |||||
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 | |||||
With a specific allowance recorded, Interest Income Recognized | |||||
Total Recorded Investment | |||||
Total Unpaid Principal Balance | |||||
Total Related Allowance | |||||
Total Average Recorded Investment | |||||
Total Interest Income Recognized | |||||
Residential Real Estate [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | 987 | 987 | 657 | ||
With no related allowance recorded, Unpaid Principal Balance | 1,031 | 1,031 | 657 | ||
With no related allowance recorded, Average Recorded Investment | 1,186 | 859 | 1,195 | 673 | 862 |
With no related allowance recorded, Interest Income Recognized | 17 | 8 | 51 | 38 | 52 |
With a specific allowance recorded, Recorded Investment | 887 | 887 | 1,056 | ||
With a specific allowance recorded, Unpaid Principal Balance | 887 | 887 | 1,013 | ||
With a specific allowance recorded, Related Allowance | 148 | 148 | 167 | ||
With a specific allowance recorded, Average Recorded Investment | 945 | 1,080 | 957 | 1,025 | 1,084 |
With a specific allowance recorded, Interest Income Recognized | 10 | 10 | 29 | 33 | 45 |
Total Recorded Investment | 1,874 | 1,874 | 1,713 | ||
Total Unpaid Principal Balance | 1,918 | 1,918 | 1,670 | ||
Total Related Allowance | 148 | 148 | 167 | ||
Total Average Recorded Investment | 2,131 | 1,939 | 2,152 | 1,698 | 1,946 |
Total Interest Income Recognized | 27 | 18 | 80 | 71 | 97 |
Consumer & Other [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | 20 | 20 | 90 | ||
With no related allowance recorded, Unpaid Principal Balance | 78 | 78 | 90 | ||
With no related allowance recorded, Average Recorded Investment | 89 | 125 | 94 | 114 | 107 |
With no related allowance recorded, Interest Income Recognized | 2 | 3 | 6 | 7 | 9 |
With a specific allowance recorded, Recorded Investment | 268 | 268 | 374 | ||
With a specific allowance recorded, Unpaid Principal Balance | 268 | 268 | 374 | ||
With a specific allowance recorded, Related Allowance | 19 | 19 | 37 | ||
With a specific allowance recorded, Average Recorded Investment | 267 | 362 | 272 | 337 | 385 |
With a specific allowance recorded, Interest Income Recognized | 2 | 5 | 11 | 17 | 22 |
Total Recorded Investment | 346 | 346 | 464 | ||
Total Unpaid Principal Balance | 346 | 346 | 464 | ||
Total Related Allowance | 19 | 19 | 37 | ||
Total Average Recorded Investment | 356 | 487 | 366 | 451 | 492 |
Total Interest Income Recognized | 4 | 8 | 17 | 24 | 31 |
All Impaired Loans less than $100,000 [Member] | |||||
Summary of Impaired loan activity | |||||
With no related allowance recorded, Recorded Investment | 398 | 398 | 131 | ||
With no related allowance recorded, Unpaid Principal Balance | 398 | 398 | 131 | ||
With no related allowance recorded, Average Recorded Investment | 438 | 344 | 398 | 344 | 131 |
With no related allowance recorded, Interest Income Recognized | |||||
Total Recorded Investment | 398 | 398 | 131 | ||
Total Unpaid Principal Balance | 398 | 398 | 131 | ||
Total Related Allowance | |||||
Total Average Recorded Investment | 438 | $ 344 | 398 | 344 | 131 |
Total Interest Income Recognized |
Loans and Allowance for Loan 31
Loans and Allowance for Loan Losses (Details 5) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($)Loan | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Loan | Sep. 30, 2015USD ($)Loan | |
Summary of newly restructured loans by type of modification | ||||
Number of Loans | Loan | 1 | 2 | 1 | |
Pre-Modification Recorded Balance | $ 309 | $ 530 | $ 24 | |
Post-Modification Recorded Balance | 309 | 530 | 24 | |
Interest Only | ||||
Term | 309 | 530 | 24 | |
Combination | ||||
Total Modification | 309 | 530 | $ 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 | |||
Combination | ||||
Total Modification | 24 | |||
Commercial [Member] | ||||
Summary of newly restructured loans by type of modification | ||||
Number of Loans | Loan | 1 | 1 | ||
Pre-Modification Recorded Balance | $ 309 | $ 309 | ||
Post-Modification Recorded Balance | 309 | 309 | ||
Interest Only | ||||
Term | 309 | 309 | ||
Combination | ||||
Total Modification | 309 | $ 309 | ||
Consumer & Other [Member] | ||||
Summary of newly restructured loans by type of modification | ||||
Number of Loans | Loan | 1 | |||
Pre-Modification Recorded Balance | $ 221 | |||
Post-Modification Recorded Balance | 221 | |||
Interest Only | ||||
Term | 221 | |||
Combination | ||||
Total Modification | $ 221 |
Loans and Allowance for Loan 32
Loans and Allowance for Loan Losses (Details 6) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)Contract | |
Financing Receivable, Impaired [Line Items] | |
Number of Contracts | Contract | 1 |
Recorded Balance | $ | $ 221 |
Consumer & Other [Member] | |
Financing Receivable, Impaired [Line Items] | |
Number of Contracts | Contract | 1 |
Recorded Balance | $ | $ 221 |
Loans and Allowance for Loan 33
Loans and Allowance for Loan Losses (Details Textual) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Loans and Allowance for Loan Losses (Textual) | |
Principal amount outstanding of loans held-in-portfolio | $ 100 |
Impaired loans which included in groups of homogenous loans | Impaired loans less than $100,000 are included in groups of homogenous loans. |
Derivative Financial Instrume34
Derivative Financial Instruments and Repurchase Agreements (Details) - Derivatives not designated as hedging instruments [Member] - Interest rate contracts [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Other Assets [Member] | ||
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet | ||
Asset Derivatives | $ 1,396 | $ 490 |
Other Liabilities [Member] | ||
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet | ||
Liability Derivatives | $ 1,396 | $ 490 |
Derivative Financial Instrume35
Derivative Financial Instruments and Repurchase Agreements (Details Textual) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Financial Instruments (Textual) | ||
Notional amount of customer-facing swaps | $ 30.1 | $ 17.6 |
Cash as collateral | 1.6 | $ 0.7 |
Repurchase agreements securities | 5.7 | |
Mortgage-backed securities | $ 14.9 |
Fair Value of Assets and Liab36
Fair Value of Assets and Liabilities (Details) - Available-For-Sale Securities [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
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 | $ 14,033 | $ 10,905 |
Mortgage-backed securities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 62,760 | 61,343 |
State and political subdivisions [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 15,873 | 17,518 |
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 | 1,396 | 490 |
Interest rate contracts - liabilities [Member] | ||
Summary of fair value measurements of assets measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | (1,396) | (490) |
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 | 14,033 | 10,905 |
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 | 62,760 | 61,343 |
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 | 15,873 | 17,518 |
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 | 1,396 | 490 |
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 | (1,396) | (490) |
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 | Sep. 30, 2016 | Dec. 31, 2015 |
Impaired Loans [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | $ 1,188 | $ 3,011 |
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 | 1,188 | 3,011 |
Mortgage Servicing Rights [Member] | ||
Summary of fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | 7,125 | 2,585 |
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 | $ 7,125 | $ 2,585 |
Fair Value of Assets and Liab38
Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
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 | $ 1,188 | $ 3,011 |
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 | $ 7,125 | $ 2,585 |
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) | 9.03% | 9.75% |
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) | 14.45% | 8.90% |
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) | 0.53% | 0.42% |
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) | 1.14% | 1.54% |
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 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets | ||||
Cash and cash equivalents | $ 25,167 | $ 20,459 | $ 18,372 | $ 28,197 |
Loans held for sale | 5,865 | 7,516 | ||
Loans, net of allowance for loan losses | 612,032 | 550,669 | ||
Federal Reserve and FHLB Bank stock | 3,748 | 3,748 | ||
Mortgage Servicing Rights | 6,887 | 7,152 | ||
Accrued interest receivable | 1,641 | 1,260 | ||
Financial liabilities | ||||
Deposits | 662,144 | 586,453 | ||
FHLB Advances | 23,000 | 35,000 | ||
Short-term borrowings | 11,363 | 12,406 | ||
Trust preferred securities | 10,310 | 10,310 | ||
Accrued interest payable | 427 | 264 | ||
Level 1 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents | 25,167 | 20,459 | ||
Loans held for sale | ||||
Loans, net of allowance for loan losses | ||||
Federal Reserve and FHLB Bank stock | ||||
Mortgage Servicing Rights | ||||
Accrued interest receivable | ||||
Financial liabilities | ||||
Deposits | 116,976 | 113,113 | ||
FHLB Advances | ||||
Short-term borrowings | ||||
Trust preferred securities | ||||
Accrued interest payable | ||||
Level 2 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents | ||||
Loans held for sale | 6,053 | 7,779 | ||
Loans, net of allowance for loan losses | ||||
Federal Reserve and FHLB Bank stock | 3,748 | 3,748 | ||
Mortgage Servicing Rights | ||||
Accrued interest receivable | 1,641 | 1,260 | ||
Financial liabilities | ||||
Deposits | 548,360 | 475,468 | ||
FHLB Advances | 23,143 | 34,870 | ||
Short-term borrowings | 11,363 | 12,406 | ||
Trust preferred securities | 8,015 | 7,165 | ||
Accrued interest payable | 427 | 264 | ||
Level 3 [Member] | ||||
Financial assets | ||||
Cash and cash equivalents | ||||
Loans held for sale | ||||
Loans, net of allowance for loan losses | 612,961 | 548,154 | ||
Federal Reserve and FHLB Bank stock | ||||
Mortgage Servicing Rights | 6,947 | 7,760 | ||
Accrued interest receivable | ||||
Financial liabilities | ||||
Deposits | ||||
FHLB Advances | ||||
Short-term borrowings | ||||
Trust preferred securities | ||||
Accrued interest payable |