Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 23, 2017 | Jun. 30, 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-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 4,872,568 | ||
Entity Public Float | $ 53.2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 17,012 | $ 20,459 |
Available-for-sale securities | 90,128 | 89,789 |
Loans held for sale | 4,434 | 7,516 |
Loans, net of unearned income | 644,433 | 557,659 |
Allowance for loan losses | (7,725) | (6,990) |
Premises and equipment, net | 19,129 | 19,010 |
Federal Reserve and Federal Home Loan Bank Stock, at cost | 3,748 | 3,748 |
Foreclosed assets held for sale, net | 994 | 286 |
Interest receivable | 1,512 | 1,260 |
Goodwill & other intangibles | 16,422 | 16,435 |
Cash value of life insurance | 13,725 | 13,437 |
Mortgage servicing rights | 8,422 | 7,152 |
Other assets | 3,771 | 3,310 |
Total assets | 816,005 | 733,071 |
Deposits | ||
Non interest bearing demand | 125,189 | 113,113 |
Interest bearing demand | 131,598 | 126,443 |
Savings | 95,594 | 83,447 |
Money market | 122,976 | 104,412 |
Time deposits | 197,716 | 159,038 |
Total deposits | 673,073 | 586,453 |
Repurchase agreements | 10,532 | 12,406 |
Federal Home Loan Bank advances | 26,500 | 35,000 |
Trust preferred securities | 10,310 | 10,310 |
Interest payable | 408 | 264 |
Other liabilities | 8,634 | 7,397 |
Total liabilities | 729,457 | 651,830 |
Commitments & Contingent Liabilities | ||
Stockholders' Equity | ||
Preferred Stock, no par value;authorized 200,000 shares; 15,000 shares issued | 13,983 | 13,983 |
Common stock, no par value; authorized 10,000,000 shares; 5,027,433 shares issued | 12,569 | 12,569 |
Additional paid-in capital | 15,362 | 15,438 |
Retained earnings | 46,688 | 40,059 |
Accumulated other comprehensive income | 51 | 650 |
Treasury stock, at cost; 2016 - 183,354 common shares, 2015 - 136,547 common shares) | (2,105) | (1,458) |
Total stockholders' equity | 86,548 | 81,241 |
Total liabilities and stockholders' equity | $ 816,005 | $ 733,071 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Balance Sheets [Abstract] | ||
Preferred stock, no par value | ||
Preferred stock, shares authorized | 200,000 | 200,000 |
Preferred stock, shares issued | 15,000 | 15,000 |
Common stock, no par value | ||
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,027,433 | 5,027,433 |
Treasury stock, shares | 183,354 | 136,547 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Loans | ||
Taxable | $ 26,846 | $ 23,692 |
Tax-exempt | 75 | 35 |
Securities | ||
Taxable | 1,536 | 1,506 |
Tax-exempt | 594 | 694 |
Total interest income | 29,051 | 25,927 |
Interest Expense | ||
Deposits | 2,578 | 1,979 |
Repurchase agreements & Other | 16 | 17 |
Federal Home Loan Bank advances | 352 | 375 |
Trust preferred securities | 252 | 213 |
Total interest expense | 3,198 | 2,584 |
Net Interest Income | 25,853 | 23,343 |
Provision for loan losses | 750 | 1,100 |
Net interest income after provision for loan losses | 25,103 | 22,243 |
Non-interest Income | ||
Wealth management fees | 2,628 | 2,606 |
Customer service fees | 2,705 | 2,779 |
Gain on sale of mortgage loans & OMSR's | 8,172 | 6,264 |
Mortgage loan servicing fees, net | 810 | 1,025 |
Gain on sale of non-mortgage loans | 979 | 947 |
Data service fees | 917 | 1,190 |
Net gain on sales of securities | 262 | |
Gain on sale of assets | 177 | 18 |
Other | 1,239 | 878 |
Total non-interest income | 17,889 | 15,707 |
Non-interest Expense | ||
Salaries and employee benefits | 17,421 | 14,917 |
Net occupancy expense | 2,145 | 1,943 |
Equipment expense | 2,618 | 2,223 |
Data processing fees | 1,380 | 1,060 |
Professional fees | 1,426 | 1,663 |
Marketing expense | 647 | 594 |
Telephone and communications | 413 | 387 |
Postage and delivery expense | 661 | 801 |
Employee expense | 545 | 543 |
Other expenses | 2,835 | 2,796 |
Total non-interest expense | 30,091 | 26,927 |
Income Before Income Tax | 12,901 | 11,023 |
Provision for Income Taxes | 4,117 | 3,404 |
Net Income | 8,784 | 7,619 |
Preferred Stock Dividends | 975 | 956 |
Net Income available to Common Shareholders | $ 7,809 | $ 6,663 |
Basic Earnings Per Share | $ 1.60 | $ 1.36 |
Diluted Earnings Per Share | $ 1.38 | $ 1.19 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statements Of Comprehensive Income [Abstract] | ||
Net income | $ 8,784 | $ 7,619 |
Available-for-sale investment securities: | ||
Gross unrealized holding loss arising in the period | (1,170) | (406) |
Related tax expense | 398 | 138 |
Less: reclassification adjustment for gain realized in income | 262 | |
Related tax benefit | (89) | |
Net effect on other comprehensive loss | (599) | (268) |
Total comprehensive income | $ 8,185 | $ 7,351 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balance at Dec. 31, 2014 | $ 75,683 | $ 13,983 | $ 12,569 | $ 15,461 | $ 34,379 | $ 918 | $ (1,627) |
Net income | 7,619 | 7,619 | |||||
Other comprehensive loss | (268) | (268) | |||||
Dividends on common stock | (983) | (983) | |||||
Dividends on preferred stock | (956) | (956) | |||||
Restricted stock vesting | (69) | 69 | |||||
Stock options exercised | 67 | (35) | 102 | ||||
Stock buyback | (2) | (2) | |||||
Share based compensation expense | 81 | 81 | |||||
Balance at Dec. 31, 2015 | 81,241 | 13,983 | 12,569 | 15,438 | 40,059 | 650 | (1,458) |
Net income | 8,784 | 8,784 | |||||
Other comprehensive loss | (599) | (599) | |||||
Dividends on common stock | (1,180) | (1,180) | |||||
Dividends on preferred stock | (975) | (975) | |||||
Restricted stock vesting | (97) | 97 | |||||
Stock options exercised | 331 | (93) | 424 | ||||
Stock buyback | (1,168) | (1,168) | |||||
Share based compensation expense | 114 | 114 | |||||
Balance at Dec. 31, 2016 | $ 86,548 | $ 13,983 | $ 12,569 | $ 15,362 | $ 46,688 | $ 51 | $ (2,105) |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statements of Stockholders' Equity [Abstract] | ||
Dividend common stock, Per share amount | $ 0.24 | $ 0.20 |
Dividend preferred stock, Per share amount | $ 0.65 | $ 0.6374 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | ||
Net Income | $ 8,784 | $ 7,619 |
Items not requiring (providing) cash | ||
Depreciation and amortization | 1,509 | 1,097 |
Provision for loan losses | 750 | 1,100 |
Expense of share-based compensation plan | 114 | 81 |
Amortization of premiums and discounts on securities | 917 | 977 |
Amortization of intangible assets | 13 | 201 |
Amortization of originated mortgage servicing rights | 1,340 | 880 |
Deferred income taxes | 738 | 1,519 |
Proceeds from sale of loans held for sale | 353,068 | 278,670 |
Originations of loans held for sale | (343,377) | (276,252) |
Gain from sale of loans | (9,151) | (7,195) |
(Gain)/Loss on sales of assets | (193) | 22 |
Net gains on sales of securities | (262) | |
Originated mortgage servicing rights impairment, net | (68) | (116) |
Changes in | ||
Interest receivable | (252) | 86 |
Other assets | (856) | (1,656) |
Interest payable & other liabilities | 952 | 1,582 |
Net cash provided by operating activities | 14,026 | 8,615 |
Investing Activities | ||
Purchases of available-for-sale securities | (22,603) | (26,261) |
Proceeds from maturities of available-for-sale securities | 17,534 | 20,328 |
Proceeds from sales of available-for-sale securities | 3,212 | |
Net change in loans | (88,027) | (42,338) |
Purchase of premises, equipment | (1,636) | (7,199) |
Proceeds from sales of premises, equipment | 9 | 667 |
Proceeds from sale of foreclosed assets | 784 | 111 |
Net cash used in investing activities | (90,727) | (54,692) |
Financing Activities | ||
Net increase in demand deposits, money market, interest checking & savings accounts | 47,942 | 39,810 |
Net increase/(decrease) in certificates of deposit | 38,678 | (4,263) |
Net decrease in securities sold under agreements to repurchase | (1,874) | (334) |
Proceeds from Federal Home Loan Bank advances | 5,500 | 9,000 |
Repayment of Federal Home Loan Bank advances | (14,000) | (4,000) |
Net proceeds from share based compensation plans | 331 | 67 |
Stock Repurchase Plan | (1,168) | (2) |
Dividends on Common Stock | (1,180) | (983) |
Dividends on Preferred Stock | (975) | (956) |
Net cash provided by financing activities | 73,254 | 38,339 |
Decrease in Cash and Cash Equivalents | (3,447) | (7,738) |
Cash and Cash Equivalents, Beginning of Year | 20,459 | 28,197 |
Cash and Cash Equivalents, End of Year | 17,012 | 20,459 |
Supplemental Cash Flows Information | ||
Interest paid | 3,054 | 2,583 |
Income taxes paid | 3,969 | 2,060 |
Transfer of loans to foreclosed assets | $ 1,238 | $ 134 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 1: Organization and Summary of Significant Accounting Policies Organization and Nature of Operations SB Financial Group, Inc. (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”). State Bank owns all the outstanding stock of Rurban Mortgage Company (“RMC”), and State Bank Insurance, LLC (“SBI”). Effective April 18, 2013, the Company changed its name from Rurban Financial Corp. to SB Financial Group, Inc. The Company is primarily engaged in providing a full range of banking and wealth management services to individual and corporate customers primarily located in Northwest Ohio and Northeast Indiana. The Company is subject to competition from other financial institutions, and regulated by certain federal and state agencies and undergoes periodic examinations by those regulatory authorities. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company, State Bank, RFCBC, RDSI, RMC, and SBI. All significant intercompany accounts and transactions were eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, loan servicing rights, valuation of deferred tax assets, other-than-temporary impairment and fair value of financial instruments. Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2016 and 2015, cash equivalents consisted primarily of interest-bearing and non-interest bearing demand deposit balances held by correspondent banks. Securities Available-for-sale securities, which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses are recorded, net of related income tax effects, in other comprehensive income. Amortization of premiums and accretion of discounts are recorded as interest income from securities. Realized gains and losses are recorded as net security gains (losses). Gains and losses on sales of securities are determined on the specific-identification method. For debt securities with fair value below carrying value when the Company does not intend to sell the debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, the Company recognizes the credit component of an other-than-temporary impairment of the debt security in earnings and the remaining portion in other comprehensive income. Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to non-interest income. Gains and losses on loan sales are recorded in non-interest income. Loans 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, loans are placed on non-accrual status not later than 90 days past due. Past due status is based on the contractual terms of the loan. 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. Allowance for Loan Losses 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. Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method for buildings and equipment over the estimated useful lives of the assets. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases. Long-lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset’s cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Federal Reserve and Federal Home Loan Bank Stock Federal Reserve and Federal Home Loan Bank stock are required investments for institutions that are members of the Federal Reserve and Federal Home Loan Bank systems. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of the carrying amount or the fair value less cost to sell. Revenue and expenses from operations related to foreclosed assets and changes in the valuation allowance are included in net income or expense from foreclosed assets. Goodwill Goodwill is tested for impairment annually. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Core Deposits and Other Intangibles Intangible assets are being amortized on a straight-line basis over weighted-average periods ranging from one to fifteen years. Such assets are periodically evaluated as to the recoverability of their carrying value. Purchased software is being amortized using the straight-line method over periods ranging from one to three years. Derivatives Derivatives are recognized as assets and liabilities on the consolidated balance sheet and measured at fair value. For exchange-traded contracts, fair value is based on quoted market prices. For non-exchange traded contracts, fair value is based on dealer quotes, pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation. Mortgage Servicing Rights Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 806-50), servicing rights from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. The Company subsequently measures each class of servicing asset using the amortization method. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment based on fair value at each reporting date. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost of service, the discount rate, the custodial earning rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage servicing right and may result in a reduction to noninterest income. Each class of separately recognized servicing assets subsequently measured using the amortization method is evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported with “Mortgage Loan Servicing Fees, net” on the income statement. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Share-Based Employee Compensation Plan At December 31, 2016 and 2015, the Company had a share-based employee compensation plan, which is described more fully in Note 15 to the Consolidated Financial Statements. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company – put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before the maturity or the ability to unilaterally cause the holder to return specific assets. Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the term “upon examination” also includes resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. With a few exceptions, the Company is no longer subject to U.S. Federal, State and Local examinations by tax authorities for the years before 2012. As of December 31, 2016, the Company had no uncertain income tax positions. Treasury Shares Treasury stock is stated at cost. Cost is determined by the weighted average cost method. Earnings Per Share Earnings per common share is computed using the two-class method. Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflect additional potential common shares and convertible preferred shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options which are determined using the treasury stock method and convertible preferred shares which are determined using the if converted method. Treasury stock shares are not deemed outstanding for earnings per share calculations. Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, and unrealized and realized gains and losses in derivative financial instruments that qualify for hedge accounting. Accumulated other comprehensive income consists solely of the cumulative unrealized gains and losses on available-for-sale securities net of income tax. Reclassifications Where appropriate, certain items in the prior year financial statements were reclassified to conform to the current presentation. These reclassifications had no effect on the prior year net income or stockholders’ equity. New and applicable accounting pronouncements: Accounting Standards Update (ASU) No. 2017-04: Intangibles – Goodwill and Other (Topic 350) This ASU simplifies the test for goodwill impairment. Specifically, these amendments eliminate Step 2 from the goodwill impairment test, and also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this ASU are effective for annual goodwill impairment tests in fiscal years beginning after December 15, 2019, and management does not believe the changes will have a material effect on the Company’s accounting and disclosures. ASU No. 2017-03: Accounting Changes and Error Corrections (Topic 250) This amendment includes the text of “SEC Staff Announcement: Disclosure of the Impact That Recently Issued Accounting Standards Will Have on the Financial Statements of a Registrant When Such Standards are Adopted in a Future Period. This staff announcement applies to ASU No. 2014-09, ASU No. 2016-02 and ASU 2016-03. The Company has enhanced its disclosures regarding the impact of recently issued accounting standards adopted in a future period will have on its accounting and disclosures in this footnote. ASU No. 2016-15: Statement of Cash Flows (Topic 230) This ASU provides specific guidance for eight cash flow classifications. The intention is to ensure that this ASU will eliminate any current or future diversity in classification and reporting. The amendments in this ASU are effective for reporting periods beginning after December 15, 2017, and management does not believe the changes will have a material effect on the Company’s consolidated financial statements. 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 has not yet determined 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. 2016-02: 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, 2018. The Company has little leasing activity and management has determined that the impact on the Company’s consolidated financial statements will be immaterial. 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 to 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. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2: Earnings Per Share Earnings per common share (EPS) is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding participating securities. Participating securities include non-vested restricted stock awards. Non-vested restricted stock awards are considered participating securities to the extent the holders of these securities receive non-forfeitable dividends at the same rate as holders of common shares. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share plus the convertible impact of preferred shares and the dilutive effect of stock compensation using the treasury stock method. EPS for the years ended December 31, 2016 and 2015 is computed as follows: Twelve Months Ended Dec., 31 ($ in thousands - except per share data) 2016 2015 Distributed earnings allocated to common shares $ 1,180 $ 982 Undistributed earnings allocated to common shares 6,620 5,676 Net earnings allocated to common shares 7,800 6,658 Net earnings allocated to participating securities 9 5 Dividends on convertible preferred shares 975 956 Net Income allocated to common shares and participating securities $ 8,784 $ 7,619 Weighted average shares outstanding for basic earnings per share 4,877 4,884 Dilutive effect of stock compensation 47 88 Dilutive effect of convertible shares 1,452 1,451 Weighted average shares outstanding for diluted earnings per share 6,376 6,423 Basic earnings per common share $ 1.60 $ 1.36 Diluted earnings per common share $ 1.38 $ 1.19 There were no anti-dilutive shares in 2016. Shares subject to issue upon exercise of options of 35,424 in 2015 at prices of $11.50 to $14.15 were excluded from the diluted earnings per common share calculation as they were anti-dilutive. |
Available-for-Sale Securities
Available-for-Sale Securities | 12 Months Ended |
Dec. 31, 2016 | |
Available-for-Sale Securities [Abstract] | |
Available-for-Sale Securities | Note 3: Available-for-Sale Securities The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of available-for-sale securities are as follows: Gross Gross ($ in thousands) Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available-for-Sale Securities: December 31, 2016: U.S. Treasury and Government agencies $ 13,341 $ 69 $ (52 ) $ 13,358 Mortgage-backed securities 62,035 204 (636 ) 61,603 State and political subdivisions 14,606 530 (39 ) 15,097 Equity securities 70 - - 70 $ 90,052 $ 803 $ (727 ) $ 90,128 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 December 31, 2016, by contractual maturity, are shown below. Expected maturities 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 $ 455 $ 455 Due after one year through five years 7,750 7,870 Due after five years through ten years 7,045 7,225 Due after ten years 12,697 12,905 27,947 28,455 Mortgage-backed securities and equity securities 62,105 61,673 Totals $ 90,052 $ 90,128 The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $44.3 million at December 31, 2016, and $46.2 million at December 31, 2015. Securities delivered for repurchase agreements (not included above) were $14.6 million at December 31, 2016 and $15.8 million at December 31, 2015. Gross gains of $0.26 million were realized from sales of available-for-sale securities in 2016. There were no realized gains or losses on available-for-sale securities in 2015. The net $0.26 million gain on sale in 2016 was a reclassification from accumulated other comprehensive income and is included in the net gain on sales of securities. The related tax expense for net security gains was $0.09 million in 2016 and was a reclassification from accumulated other comprehensive income and is included in the income tax expense line in the income statement. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2016 and 2015, was $52.2 million and $37.2 million, respectively, which was approximately 58% and 41%, respectively, of the Company's available-for-sale investment portfolio. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. The following tables present securities with unrealized losses at December 31, 2016 and 2015: ($ in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: U.S. Treasury and Government agencies $ 6,044 $ (52 ) $ - $ - $ 6,044 $ (52 ) Mortgage-backed securities 44,344 (607 ) 703 (29 ) 45,047 (636 ) State and political subdivisions 1,095 (39 ) - - 1,095 (39 ) $ 51,483 $ (698 ) $ 703 $ (29 ) $ 52,186 $ (727 ) ($ 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 ) The unrealized loss on the securities portfolio has increased by $0.30 million as of December 31, 2016, from the prior year. Management reviews these securities on a quarterly basis and has determined that no impairment exists. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. When the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Allowance for Loan Losses [Abstract] | |
Loans and Allowance for Loan Losses | Note 4: Loans and Allowance for Loan Losses Categories of loans at December 31 include: Total Loans Non-Accrual Loans ($ in thousands) Dec. 2016 Dec. 2015 Dec. 2016 Dec. 2015 Commercial & Industrial $ 108,752 $ 86,542 190 188 Commercial RE & Construction 284,084 242,208 1,194 5,670 Agricultural & Farmland 52,475 43,835 4 7 Residential Real Estate 142,452 130,806 1,162 749 Consumer & Other 56,335 54,224 187 32 Total Loans $ 644,098 $ 557,615 $ 2,737 $ 6,646 Unearned Income $ 335 $ 44 Total Loans, net of unearned income $ 644,433 $ 557,659 Allowance for loan losses $ (7,725 ) $ (6,990 ) State Bank makes commercial, agri-business, consumer and residential loans to customers throughout its defined market area. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Standby letters of credit are conditional commitments issued by State Bank to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Forward sale commitments are commitments to sell groups of residential mortgage loans that the Company originates or purchases as part of its mortgage banking activities. The Company commits to sell the loans at specified prices in a future period, typically within forty-five days. These commitments are acquired to reduce market risk on mortgage loans in the process of origination and mortgage loans held for sales since the Company is exposed to interest rate risk during the period between issuing a loan commitment and the sales of the loan into the secondary market. Listed below is a summary of loan commitments, unused lines of credit and standby letters of credit as of December 31, 2016 and 2015. ($ in thousands) 2016 2015 Loan commitments and unused lines of credit $ 143,553 $ 126,902 Standby letters of credit 708 1,026 Total $ 144,261 $ 127,928 There are various contingent liabilities that are not reflected in the consolidated financial statements, including claims and legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material effect on the Company’s consolidated financial condition or results of operations. 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 nonowner-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 balance of the allowance for loan and lease losses (“ALLL”) and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2016 and 2015: Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Twelve Months Ended December 31, 2016 Beginning balance $ 914 $ 3,886 $ 204 $ 1,312 $ 674 $ 6,990 Charge Offs (135 ) (241 ) - (20 ) (105 ) $ (501 ) Recoveries 408 5 12 2 59 486 Provision 17 (329 ) 131 669 262 750 Ending Balance $ 1,204 $ 3,321 $ 347 $ 1,963 $ 890 $ 7,725 Loans Receivable at December 31, 2016 Allowance: Ending balance: individually evaluated for impairment $ 50 $ 119 $ - $ 124 $ 7 $ 300 Ending balance: collectively evaluated for impairment $ 1,154 $ 3,202 $ 347 $ 1,839 $ 883 $ 7,425 Loans: Ending balance: individually evaluated for impairment $ 50 $ 1,578 $ - $ 1,919 $ 248 $ 3,795 Ending balance: collectively evaluated for impairment $ 108,702 $ 282,506 $ 52,475 $ 140,533 $ 56,087 $ 640,303 Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Twelve Months Ended December 31, 2015 Beginning balance $ 1,630 $ 2,857 $ 208 $ 1,308 $ 768 $ 6,771 Charge Offs (497 ) (303 ) - (56 ) (96 ) $ (952 ) Recoveries 26 3 3 29 10 71 Provision (245 ) 1,329 (7 ) 31 (8 ) 1,100 Ending Balance $ 914 $ 3,886 $ 204 $ 1,312 $ 674 $ 6,990 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 Credit Risk Profile The Company categorizes loans into risk categories (loan grades) 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 $100,000 and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Pass (grades 1 – 4): Special Mention (grade 5): Substandard (grade 6): Doubtful (grade 7): Loss (grade 8): The following tables present the credit risk profile of the Company’s loan portfolio based on rating category as of December 31, 2016 and 2015: December 31, 2016 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 1,149 $ 33 $ 9 $ 234 $ 3 $ 1,428 3 28,461 89,406 9,985 113,403 53,386 294,641 4 78,517 188,007 42,481 26,510 2,625 338,140 Total Pass (1 - 4) 108,127 277,446 52,475 140,147 56,014 634,209 Special Mention (5) - 5,030 - 518 123 5,671 Substandard (6) 150 1,291 - 625 61 2,127 Doubtful (7) 475 317 - 1,162 137 2,091 Loss (8) - - - - - - Total Loans $ 108,752 $ 284,084 $ 52,475 $ 142,452 $ 56,335 $ 644,098 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. The Company uses a three-year average of historical losses for the general component of the allowance for loan loss calculation. No significant changes were made to the loan risk grading system definitions and allowance for loan loss methodology during the periods presented. The following tables present the Company’s loan portfolio aging analysis as of December 31, 2016 and 2015: ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Total Loans December 31, 2016 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ 35 $ 50 $ 104 $ 189 $ 108,563 $108,752 Commercial RE & Construction 254 883 59 1,196 282,888 284,084 Agricultural & Farmland - - - - 52,475 52,475 Residential Real Estate 123 201 115 439 142,013 142,452 Consumer & Other 185 45 148 378 55,957 56,335 Total Loans $ 597 $ 1,179 $ 426 $ 2,202 $ 641,896 $644,098 ($ 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 non-performing 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 activity for the twelve months ended December 31, 2016 and 2015: Twelve Months Ended December 31, 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 - 655 24 Agricultural & Farmland - - - - - Residential Real Estate 1,248 1,290 - 1,470 70 Consumer & Other 129 129 - 151 11 All Impaired Loans < $100,000 452 452 - 452 - With a specific allowance recorded: Commercial & Industrial 50 50 50 50 3 Commercial RE & Construction 941 941 119 1,010 45 Agricultural & Farmland - - - - - Residential Real Estate 671 672 124 751 30 Consumer & Other 119 118 7 123 7 Totals: Commercial & Industrial $ 50 $ 50 $ 50 $ 50 $ 3 Commercial RE & Construction $ 1,578 $ 1,578 $ 119 $ 1,665 $ 69 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,919 $ 1,962 $ 124 $ 2,221 $ 100 Consumer & Other $ 248 $ 247 $ 7 $ 274 $ 18 All Impaired Loans < $100,000 $ 452 $ 452 $ - $ 452 $ - 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 4,643 4,893 1,759 5,006 90 Agricultural & Farmland - - - - - Residential Real Estate 1,013 1,013 167 1,084 45 Consumer & Other 374 374 37 385 22 Totals: Commercial & Industrial $ 126 $ 1,214 $ - $ 1,388 $ - Commercial RE & Construction $ 5,753 $ 6,003 $ 1,759 $ 6,212 $ 117 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,670 $ 1,670 $ 167 $ 1,946 $ 97 Consumer & Other $ 464 $ 464 $ 37 $ 492 $ 31 All Impaired Loans < $100,000 $ 131 $ 131 $ - $ 131 $ - 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 debt. The Company also may grant interest rate concessions for a limited timeframe on a case by case basis. ● Amortization or maturity date change beyond what the collateral supports, including a change 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 tables below present the activity of TDRs during the years ended December 31, 2016 and 2015: December 31, 2016 ($ in thousands) Number of Loans Pre-Modification Post Modification Residential Real Estate 1 $ 220 $ 220 Commercial 1 307 307 Total Modifications 2 $ 527 $ 527 ($ in thousands) Interest Total Only Term Combination Modification Residential Real Estate $ - $ 220 $ - $ 220 Commercial - 307 - 307 Total Modifications $ - $ 527 $ - $ 527 There was no increase in the allowance for loan losses due to TDRs in the twelve-month period ended December 31, 2016. December 31, 2015 ($ in thousands) Number of Loans Pre-Modification Post Modification Residential Real Estate 1 $ 22 $ 22 Commercial 1 314 314 Consumer & Other 1 39 39 Total Modifications 3 $ 375 $ 375 ($ in thousands) Interest Total Only Term Combination Modification Residential Real Estate $ - $ 22 $ - $ 22 Commercial - 314 - 314 Consumer & Other - 39 - 39 Total Modifications $ - $ 375 $ - $ 375 There was no increase in the allowance for loan losses due to TDRs in the twelve-month period ended December 31, 2015. There were no TDRs modified during 2016 or 2015 that have subsequently defaulted. |
Mortgage Banking and Servicing
Mortgage Banking and Servicing Rights | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Banking and Servicing Rights [Abstract] | |
Mortgage Banking and Servicing Rights | Note 5: Mortgage Banking and Servicing Rights Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others approximated $899.7 million and $772.5 million at December 31, 2016 and 2015, respectively. Contractually specified servicing fees of approximately $2.1 million and $1.8 million were included in mortgage loan servicing fees in the income statement for the years ended December 31, 2016 and 2015, respectively. The following table summarizes mortgage servicing rights capitalized and related amortization, along with activity in the related valuation allowance: ($ in thousands) 2016 2015 Carrying amount, beginning of year $ 7,152 $ 5,704 Mortgage servicing rights capitalized during the year 2,542 2,214 Mortgage servicing rights amortization during the year (1,340 ) (882 ) Net change in valuation allowance 68 116 Carrying amount, end of year $ 8,422 $ 7,152 Valuation allowance: Beginning of year $ 296 $ 412 Reduction (68 ) (116 ) End of year $ 228 $ 296 Fair Value, beginning of period $ 7,760 $ 6,358 Fair Value, end of period $ 9,656 $ 7,760 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note 6: Derivative Financial Instruments 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. 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 hedged by offsetting 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 December 31, 2016, the notional amount of customer-facing swaps was approximately $33.2 million, as compared to $17.6 million at December 31, 2015. This amount is offset with third party counterparties, as described above. The Company has minimum collateral posting thresholds with its derivative counterparties. As of December 31, 2016, the Company had posted cash as collateral of $0.1 million. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments, as well as their classification on the Balance Sheet, as of December 31, 2016 and 2015. Asset Derivatives Liability Derivatives December 31, 2016 December 31, 2016 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 623 Other Liabilities $ 623 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 Statement for the years ended December 31, 2016 and 2015. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Note 7: Premises and Equipment Major classifications of premises and equipment stated at cost were as follows at December 31: ($ in thousands) 2016 2015 Land $ 2,907 $ 2,501 Buildings and improvements 19,431 19,222 Equipment 11,042 10,566 Construction in progress 2,429 2,002 35,809 34,291 Less accumulated depreciation (16,680 ) (15,281 ) Net premises and equipment $ 19,129 $ 19,010 For the coming year, the Company has plans, but no commitments, for premises and equipment purchases. These expenditures will be funded by cash on hand and from cash generated from current operations. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangibles [Abstract] | |
Goodwill and Intangibles | Note 8: Goodwill and Intangibles The balance of goodwill as of December 31, 2016 was $16.4 million. No changes in goodwill were noted during 2016 or 2015. Goodwill is tested on the last day of the last quarter of each calendar year. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At December 31, 2016, the Company’s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Carrying basis and accumulated amortization of intangible assets were as follows at December 31: 2016 2015 ($ in thousands) Gross Accumulated Gross Accumulated Core deposits intangible $ 4,698 $ (4,675 ) $ 4,698 $ (4,668 ) Customer relationship intangible 200 (153 ) 200 (148 ) Banking intangibles 4,898 (4,828 ) 4,898 (4,816 ) Amortization expense for core deposits and other for the years ended December 31, 2016 and 2015 was $0.01 and $0.20 million, respectively. Estimated amortization expense for each of the following five years is immaterial. |
Interest Bearing Deposits
Interest Bearing Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Interest Bearing Deposits/ Borrowings [Abstract] | |
Interest Bearing Deposits | Note 9: Interest Bearing Deposits Interest-bearing time deposits in denominations of $250,000 or more were $11.1 million on December 31, 2016 and $7.4 million on December 31, 2015. Certificates of Deposit obtained from brokers totaled approximately $12.7 million and $5.2 million at December 31, 2016 and 2015, respectively, and mature between 2017 and 2021. At December 31, 2016, the scheduled maturities of time deposits were as follows: ($ in thousands) 2017 $ 93,693 2018 33,700 2019 44,238 2020 13,424 2021 12,060 Thereafter 601 $ 197,716 Included in time deposits at December 31, 2016 and 2015 were $61.6 million and $37.1 million, respectively, of deposits which were obtained through the Certificate of Deposit Account Registry Service (CDARS). This service allows deposit customers to maintain fully insured balances in excess of the $250,000 FDIC limit without the inconvenience of having multi-banking relationships. Under the reciprocal program that State Bank is currently participating in, customers agree to allow State Bank to place their deposits with other participating banks in the CDARS program in insurable amounts under $250,000. In exchange, other banks in the program agree to place their deposits with State Bank also in insurable amounts under $250,000. |
Securities Sold Under Repurchas
Securities Sold Under Repurchase Agreements | 12 Months Ended |
Dec. 31, 2016 | |
Securities Sold Under Repurchase Agreements [Abstract] | |
Securities Sold Under Repurchase Agreements | Note 10: Securities Sold Under Repurchase Agreements ($ in thousands) 2016 2015 Securities Sold Under Repurchase Agreements $ 10,532 $ 12,406 State Bank has retail repurchase agreements to facilitate cash management transactions with commercial customers. Securing these obligations are agency ($5.1 and $4.9 million for 2016 and 2015 respectively) and mortgage-backed securities ($9.5 and $11.0 million for 2016 and 2015 respectively), which is held at the Federal Home Loan Bank. This collateral has maturities from 2018 through 2042. At December 31, 2016, retail repurchase agreements totaled $10.5 million. The maximum amount of outstanding agreements at any month end during 2016 and 2015 totaled $20.6 and $20.3 million, respectively, and the monthly average of such agreements totaled $15.0 and $17.1 million, respectively. The retail repurchase agreements mature within one month. At December 31, 2016 and December 31, 2015, State Bank had $23.0 and $15.0 million, respectively, in federal funds lines, of which $0.0 million were drawn. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Interest Bearing Deposits/ Borrowings [Abstract] | |
Borrowings | Note 11: Borrowings The Federal Home Loan Bank advances were secured by $93.1 million in mortgage loans at December 31, 2016. Advances, at interest rates from 0.74 to 1.96 percent, are subject to restrictions or penalties in the event of prepayment. Aggregate annual maturities of Federal Home Loan Bank advances at December 31, 2016, were: ($ in thousands) Debt 2017 13,000 2018 7,000 2019 6,500 2020 - 2021 - Total $ 26,500 On September 15, 2005, RST II, a wholly-owned subsidiary of the Company, closed a pooled private offering of 10,000 Capital Securities with a liquidation amount of $1,000 per security. The proceeds of the offering were loaned to the Company in exchange for junior subordinated debentures with terms similar to the Capital Securities. Distributions on the Capital Securities are payable quarterly at a variable rate that is based upon the 3-month LIBOR plus 1.80 percent and are included in interest expense in the consolidated financial statements. These securities may be included in Tier 1 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 12: Income Taxes The provision for income taxes includes these components: ($ in thousands) For The Year Ended 2016 2015 Taxes currently payable $ 3,379 $ 1,885 Deferred provision 738 1,519 Income tax expense $ 4,117 $ 3,404 A reconciliation of income tax expense at the statutory rate to the Company's actual income tax expense is shown below: ($ in thousands) For The Year Ended 2016 2015 Computed at the statutory rate (34%) $ 4,387 $ 3,748 Increase (decrease) resulting from Tax exempt interest (218 ) (240 ) BOLI Income (98 ) (99 ) Other 46 (5 ) Actual tax expense $ 4,117 $ 3,404 The tax effects of temporary differences related to deferred taxes shown on the balance sheets are: ($ in thousands) At December 31, 2016 2015 Deferred tax assets Allowance for loan losses $ 2,627 $ 2,377 Net deferred loan fees 98 104 Other 361 757 3,086 3,238 Deferred tax liabilities Depreciation (1,385 ) (1,335 ) Mortgage servicing rights (2,930 ) (2,468 ) Unrealized gains on available-for-sale securities (26 ) (335 ) Purchase accounting adjustments (1,659 ) (1,489 ) Prepaids (188 ) (285 ) FHLB stock dividends (466 ) (465 ) (6,654 ) (6,377 ) Net deferred tax liability $ (3,568 ) $ (3,139 ) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 13: Accumulated Other Comprehensive Income The following table presents reclassifications out of accumulated other comprehensive income related to unrealized gains and losses on available-for-sale securities for the two years ending December 31. ($ in thousands) 2016 2015 Affected Line Item in the Realized gains included in net income $ 262 $ - Gains on investment securities 262 - Income before income taxes Tax effect (89 ) - Provision for income taxes Net of Tax $ 173 $ - Net income |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 14: Regulatory Matters As of December 31, 2016, based on its call report computations, State Bank was classified as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, State Bank must maintain capital ratios as set forth in the table below. There are no conditions or events since December 31, 2016 that management believes have changed State Bank’s capital classification. State Bank’s actual capital amounts and ratios are presented in the following table. Capital levels are presented for the State Bank only as the Company is now exempt from quarterly reporting at the holding company level: To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Procedures ($ in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 Tier I Capital to average assets $ 74,183 9.31 % $ 31,875 4.0 % $ 39,844 5.0 % Tier I Common equity capital to risk-weighted assets 74,183 10.28 % 32,477 4.5 % 46,912 6.5 % Tier I Capital to risk-weighted assets 74,183 10.28 % 43,303 6.0 % 57,738 8.0 % Total Risk-based capital to risk-weighted assets 81,908 11.35 % 57,738 8.0 % 72,172 10.0 % As of December 31, 2015 Tier I Capital to average assets $ 64,914 9.10 % $ 28,534 4.0 % $ 35,668 5.0 % Tier I Common equity capital to risk-weighted assets 64,914 10.23 % 28,545 4.5 % 41,231 6.5 % Tier I Capital to risk-weighted assets 64,914 10.23 % 38,059 6.0 % 50,746 8.0 % Total Risk-based capital to risk-weighted assets 71,904 11.34 % 50,746 8.0 % 63,432 10.0 % The above minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. The capital conservation buffer is phasing in from 0.0 percent for 2015 to 2.50 percent for 2019. The capital conservation buffer was 0.625 percent at December 31, 2016. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes as of December 31, 2016, State Bank met all capital adequacy requirements to which they are subject. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2016 | |
Employee Benefits [Abstract] | |
Employee Benefits | Note 15: Employee Benefits The Company has instituted a long-term incentive program (LTI), with the objective of rewarding senior management with restricted shares of the Company, in addition to the existing stock option program (see Note 16). The Company has a retirement savings 401(k) plan covering substantially all employees. Employees contributing up to 4 percent of their compensation receive a Company match of 100 percent of the employee’s contribution. Employee contributions are vested immediately and the Company’s matching contributions are fully vested after three years of employment. Employer contributions charged to expense for 2016 and 2015 were $0.4 million and $0.4 million, respectively. Also, the Company has Supplemental Executive Retirement Plan (“SERP”) Agreements with certain active and retired officers. The agreements provide monthly payments for up to 15 years that equal 15 percent to 25 percent of average compensation prior to retirement or death. The charges to expense for the current agreements were $.01 million and $0.2 million for 2016 and 2015, respectively. Additional life insurance is provided to certain officers through a bank-owned life insurance policy (“BOLI”). By way of a separate split-dollar agreement, the policy interests are divided between State Bank and the insured’s beneficiary. State Bank owns the policy cash value and a portion of the policy net death benefit, over and above the cash value assigned to the insured’s beneficiary. The cash surrender value of all life insurance policies totaled $13.7 and $13.4 million at December 31, 2016, and 2015, respectively. The Company has a noncontributory employee stock ownership plan (“ESOP”) covering substantially all employees of the Company and its subsidiaries. Voluntary contributions are made by the Company to the plan. Each eligible employee is vested based upon years of service, including prior years of service. The Company’s contributions to the account of each employee become fully vested after three years of service. Benefit expense for the value of the stock purchased is recorded equal to the fair market value of the stock when contributions, which are determined annually by the Board of Directors of the Company, are made to the ESOP. Allocated shares in the ESOP at December 31, 2016 and 2015, were 466,442 and 457,647, respectively. Dividends on allocated shares are recorded as dividends and charged to retained earnings. Compensation expense is recorded equal to the fair market value of the stock when contributions, which are determined annually by the Board of Directors of the Company, are made to the ESOP. ESOP expense for the years ended December 31, 2016 and 2015 was $0.3 million and $0.2 million, respectively. |
Share Based Compensation Plan
Share Based Compensation Plan | 12 Months Ended |
Dec. 31, 2016 | |
Share Based Compensation Plan [Abstract] | |
Share Based Compensation Plan | Note 16: Share Based Compensation Plan In April 2008, the shareholders approved a new share-based incentive compensation plan, the SB Financial Group, Inc. 2008 Stock Incentive Plan (the "2008 Plan"), which replaced the Company’s 1997 Stock Option Plan. The 2008 Plan permits the grant or award of incentive stock options, nonqualified stock options, stock appreciation rights ("SARs"), and restricted stock for up to 250,000 Common Shares of the Company. The 2008 Plan is intended to advance the interests of the Company and its shareholders by offering employees, directors and advisory board members of the Company and its subsidiaries an opportunity to acquire or increase their ownership interest in the Company through grants of equity-based awards. The 2008 Plan permits equity-based awards to be used to attract, motivate, reward and retain highly competent individuals upon whose judgment, initiative, leadership and efforts are key to the success of the Company by encouraging those individuals to become shareholders of the Company. Option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant and those option awards vest based on 5 years of continuous service and have 10-year contractual terms. The fair value of each option award was estimated on the date of grant using the Black-Scholes valuation model. No options were granted in either 2016 or 2015. There was no compensation expense charged against income with respect to option awards under the 2008 Plan for 2016 and 2015, respectively. A summary of incentive option activity under the Company’s plans as of December 31, 2016 and changes during the year then ended, is presented below: Shares Weighted-Average Exercise Price Weighted-Average Remaining Term Aggregate Intrinsic Value Outstanding, beginning of year 140,074 $ 8.12 Granted - - Exercised (38,514 ) 8.72 Forfeited (1,750 ) 9.56 Expired - - Outstanding, end of year 99,810 7.85 2.54 $ 818,741 Exercisable, end of year 99,810 7.85 2.54 $ 818,741 During 2016, the 38,514 option shares exercised had a total intrinsic value of $0.33 million and the cash received from these exercised options was $0.24 million. The tax benefit from these transactions was immaterial. As of December 31, 2016, there was no unrecognized compensation cost related to incentive option share-based compensation arrangements granted under the 2008 Plan. On February 5, 2013, the Company adopted a Long Term Incentive (LTI) Plan. The Plan awards restricted stock in the Company to certain key executives under the 2008 Plan. These restricted stock awards vest over a four-year period and are intended to assist the Company in retention of key executives. During 2016 and 2015, the Company met certain performance targets and restricted stock awards were approved by the Board. The compensation cost charged against income for the Long Term Incentive (LTI) Plan was $0.13 million and $0.08 million for 2016 and 2015, respectively. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $0.04 million and $0.03 million for 2016 and 2015, respectively. A summary of restricted stock activity under the Company’s plan as of December 31, 2016 and changes during the year ended is presented below: Shares Weighted-Average Value per Share Nonvested, beginning of year 27,328 $ 8.77 Granted 17,280 10.03 Vested (9,110 ) 8.55 Forfeited - - Nonvested, end of year 35,498 $ 9.44 As of December 31, 2016, there was $0.31 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements related to the restricted stock awards under the 2008 Plan which were granted in accordance with the Long Term Incentive (LTI) plan. That cost is expected to be recognized over a weighted-average period of 2.05 years. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Trust Preferred Securities/Preferred Stock [Abstract] | |
Preferred Stock | Note 17: Preferred Stock On December 23, 2014, the Company completed its public offering of 1,500,000 depository shares, each representing a 1/100 th Each Series A Preferred Share, at the option of the holder, is convertible at any time into the number of common shares equal to $1,000.00 divided by the conversion price then in effect, which at December 31, 2016, was $10.328. On or after the fifth anniversary of the issue date of the Series A Preferred Shares (December 23, 2019), the Company may require all holders of Series A Preferred Shares (and, therefore, depository shares) to convert their shares into common shares of the Company, provided the Company’s common share price exceeds 120 percent of the conversion price noted above. The conversion price may be impacted by the quarterly dividend paid on the common shares. At December 31, 2016, the aggregate number of common shares issuable upon the conversion of outstanding Series A Preferred Shares was 1,456,442. |
Disclosures About Fair Value of
Disclosures About Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Disclosures About Fair Value of Assets and Liabilities [Abstract] | |
Disclosures About Fair Value of Assets and Liabilities | Note 18: Disclosures About Fair Value of Assets and Liabilities ASC 820 defines fair value as 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. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Level 2: Level 3: Following is a description of the valuation methodologies, inputs used for assets measured at fair value on a recurring basis, recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Available-for-Sale Securities The fair value 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. government agencies, mortgage-backed securities and obligations of political and state subdivisions. 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 securities measured at fair value on a recurring basis and the level within ASC 820 fair value hierarchy in which the fair value measurements fell at December 31, 2016 and 2015: Fair Value Measurements Using: ($ in thousands) Available-for-Sale Securities: Fair Values at 12/31/2016 (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 13,358 $ - $ 13,358 $ - Mortgage-backed securities 61,603 - 61,603 - State and political subdivisions 15,097 - 15,097 - Equity securities 70 - 70 - Interest rate contracts - assets 623 - 623 - Interest rate contracts - liabilities (623 ) - (623 ) - Fair Value Measurements Using: ($ in thousands) Available-for-Sale Securities: Fair Values at 12/31/2015 (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 independent appraisals of the collateral, which are 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 December 31, 2016 and 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. Foreclosed Assets Held for Sale Foreclosed assets held for sale are carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired. Estimated fair value of foreclosed assets held for sale is based on appraisals or evaluations. Foreclosed assets held for sale are classified within Level 3 of the fair value hierarchy. Appraisals of foreclosed assets held for sale are obtained when the real estate is acquired and subsequently as deemed necessary by Credit Administration. These independent appraisals of the collateral are reviewed for accuracy and consistency by Credit Administration. The appraisers are selected from the list of approved appraisers maintained by management. The following table presents the fair value measurements of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fell at December 31, 2016 and 2015: ($ in thousands) Description Fair Values at 12/31/2016 (Level 1) (Level 2) (Level 3) Impaired loans $ 786 $ - $ - $ 786 Mortgage Servicing Rights 1,993 - - 1,993 ($ in thousands) Description Fair Values at 12/31/2015 (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 Unobservable (Level 3) Inputs The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at December 31, 2016 and 2015: ($ in thousands) Fair Value at 12/31/2016 Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent $ 786 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 1,993 Discounted cash flow Discount Rate 9.65 % Constant prepayment rate 7.61 % P&I earnings credit 0.76 % T&I earnings credit 1.60 % Inflation for cost of servicing 1.50 % ($ in thousands) Fair Value at 12/31/2015 Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent $ 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 % The mortgage servicing rights portfolio is measured for fair value by an independent third party. The valuation of the portfolio hinges on a number of quantitative factors. These factors include, but are not limited to, a discount rate applied to the cash flows, and an assumption of future principle prepayments. The prepayment assumptions are based upon the historical performance of the Company’s portfolio as well as market metrics. With the increasing interest rates during 2016, the mortgage servicing rights have increased substantially in value. The servicing rights have had a decline in prepayments and the .10 percent decrease in the discount rate reflects the change in market rates. There were no changes in the inputs or methodologies used to determine fair value at December 31, 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 Interest Receivable and Payable Fair value is determined to be the carrying amount for these items (which include cash on hand, due from banks, and federal funds sold) because they represent cash or mature in 90 days or less, and do not represent unanticipated credit concerns. 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, net, is based on estimates of the rate State Bank would charge for similar loans at December 31, 2016 and 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, Repurchase Agreements & FHLB advances 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 December 31, 2016 and 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 December 31, 2016 and 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 financial instruments. 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. December 31, 2016 Carrying Fair Value Measurments Using $’s in thousands Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 17,012 $ 17,012 $ - $ - Loans held for sale 4,434 - 4,503 - Loans, net of allowance for loan losses 636,708 - - 636,909 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Interest receivable 1,512 - 1,512 - Mortgage Servicing Rights 8,422 - - 9,656 Financial liabilities Deposits $ 673,073 $ 125,189 $ 550,990 $ - Repurchase agreements 10,532 - 10,532 - FHLB advances 26,500 - 26,477 - Trust preferred securities 10,310 - 7,422 - Interest payable 408 - 408 - December 31, 2015 Carrying Fair Value Measurments Using $’s in thousands 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 - Interest receivable 1,260 - 1,260 - Mortgage Servicing Rights 7,152 - - 7,760 Financial liabilities Deposits $ 586,453 $ 113,113 $ 475,468 $ - Repurchase agreements 12,406 - 12,406 - FHLB advances 35,000 - 34,870 - Trust preferred securities 10,310 - 7,165 - Interest payable 264 - 264 - |
Condensed Financial Information
Condensed Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information [Abstract] | |
Condensed Financial Information | Note 19: Condensed Financial Information Presented below is condensed financial information of the parent company only ($ in thousands): Condensed Balance Sheets 2016 2015 Assets Cash and cash equivalents $ 4,681 $ 9,157 Investment in banking subsidiaries 91,308 82,245 Investment in nonbanking subsidiaries 1,417 1,488 Other assets 673 274 Total assets $ 98,079 $ 93,164 Liabilities Trust preferred securities $ 10,000 $ 10,000 Borrowings from nonbanking subsidiaries 310 310 Other liabilities & accrued interest payable 1,221 1,613 Total liabilities 11,531 11,923 Stockholders' Equity 86,548 81,241 Total liabilities and stockholders' equity $ 98,079 $ 93,164 2016 2015 Condensed Statements of Income & Comprehensive Income Dividends from subsidiaries: Banking subsidiaries $ - $ 1,000 Total income - 1,000 Expenses Interest expense 253 212 Other expense 969 922 Total expenses 1,222 1,134 Income before income tax (1,222 ) (134 ) Income tax benefit (416 ) (385 ) Income before equity in undistributed income of subsidiaries (806 ) 251 Equity in undistributed income of subsidiaries Banking subsidiaries 9,662 7,369 Nonbanking subsidiaries (72 ) (1 ) Total 9,590 7,368 Net income $ 8,784 $ 7,619 Preferred stock dividends 975 956 Net income available to common shareholders $ 7,809 $ 6,663 Comprehensive income $ 8,185 $ 7,351 Condensed Statements of Cash Flows 2016 2015 Operating Activities Net income $ 8,784 $ 7,619 Items not requiring (providing) cash Equity in undistributed net income of subsidiaries (9,590 ) (7,368 ) Expense of stock option plan 114 81 Other assets (401 ) (166 ) Other liabilities (391 ) (1,581 ) Net cash used in operating activities (1,484 ) (1,415 ) Financing Activities Dividends on common stock (1,180 ) (983 ) Dividends on preferred stock (975 ) (956 ) Proceeds from stock compensation 331 67 Repurchase of common stock (1,168 ) (2 ) Net cash used in financing activities (2,992 ) (1,874 ) Net Change in Cash and Cash Equivalents (4,476 ) (3,289 ) Cash and Cash Equivalents at Beginning of Year 9,157 12,446 Cash and Cash Equivalents at End of Year $ 4,681 $ 9,157 |
Organization and Summary of S28
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization and Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company, State Bank, RFCBC, RDSI, RMC, and SBI. All significant intercompany accounts and transactions were eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, loan servicing rights, valuation of deferred tax assets, other-than-temporary impairment and fair value of financial instruments. |
Cash Equivalents | Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2016 and 2015, cash equivalents consisted primarily of interest-bearing and non-interest bearing demand deposit balances held by correspondent banks. |
Securities | Securities Available-for-sale securities, which include any security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses are recorded, net of related income tax effects, in other comprehensive income. Amortization of premiums and accretion of discounts are recorded as interest income from securities. Realized gains and losses are recorded as net security gains (losses). Gains and losses on sales of securities are determined on the specific-identification method. For debt securities with fair value below carrying value when the Company does not intend to sell the debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, the Company recognizes the credit component of an other-than-temporary impairment of the debt security in earnings and the remaining portion in other comprehensive income. |
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to non-interest income. Gains and losses on loan sales are recorded in non-interest income. |
Loans | Loans 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, loans are placed on non-accrual status not later than 90 days past due. Past due status is based on the contractual terms of the loan. 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. |
Allowance for Loan Losses | Allowance for Loan Losses 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. |
Premises and Equipment | Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method for buildings and equipment over the estimated useful lives of the assets. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases. |
Long-lived Asset Impairment | Long-lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset’s cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. |
Federal Reserve and Federal Home Loan Bank Stock | Federal Reserve and Federal Home Loan Bank Stock Federal Reserve and Federal Home Loan Bank stock are required investments for institutions that are members of the Federal Reserve and Federal Home Loan Bank systems. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. |
Foreclosed Assets Held for Sale | Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of the carrying amount or the fair value less cost to sell. Revenue and expenses from operations related to foreclosed assets and changes in the valuation allowance are included in net income or expense from foreclosed assets. |
Goodwill | Goodwill Goodwill is tested for impairment annually. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. |
Core Deposits and Other Intangibles | Core Deposits and Other Intangibles Intangible assets are being amortized on a straight-line basis over weighted-average periods ranging from one to fifteen years. Such assets are periodically evaluated as to the recoverability of their carrying value. Purchased software is being amortized using the straight-line method over periods ranging from one to three years. |
Derivatives | Derivatives Derivatives are recognized as assets and liabilities on the consolidated balance sheet and measured at fair value. For exchange-traded contracts, fair value is based on quoted market prices. For non-exchange traded contracts, fair value is based on dealer quotes, pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation. |
Mortgage Servicing Rights | Mortgage Servicing Rights Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance (ASC 806-50), servicing rights from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. The Company subsequently measures each class of servicing asset using the amortization method. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment based on fair value at each reporting date. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost of service, the discount rate, the custodial earning rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage servicing right and may result in a reduction to noninterest income. Each class of separately recognized servicing assets subsequently measured using the amortization method is evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported with “Mortgage Loan Servicing Fees, net” on the income statement. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. |
Share-Based Employee Compensation Plan | Share-Based Employee Compensation Plan At December 31, 2016 and 2015, the Company had a share-based employee compensation plan, which is described more fully in Note 15 to the Consolidated Financial Statements. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company – put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before the maturity or the ability to unilaterally cause the holder to return specific assets. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the term “upon examination” also includes resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. With a few exceptions, the Company is no longer subject to U.S. Federal, State and Local examinations by tax authorities for the years before 2012. As of December 31, 2016, the Company had no uncertain income tax positions. |
Treasury Shares | Treasury Shares Treasury stock is stated at cost. Cost is determined by the weighted average cost method. |
Earnings Per Share | Earnings Per Share Earnings per common share is computed using the two-class method. Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflect additional potential common shares and convertible preferred shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options which are determined using the treasury stock method and convertible preferred shares which are determined using the if converted method. Treasury stock shares are not deemed outstanding for earnings per share calculations. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, and unrealized and realized gains and losses in derivative financial instruments that qualify for hedge accounting. Accumulated other comprehensive income consists solely of the cumulative unrealized gains and losses on available-for-sale securities net of income tax. |
Reclassifications | Reclassifications Where appropriate, certain items in the prior year financial statements were reclassified to conform to the current presentation. These reclassifications had no effect on the prior year net income or stockholders’ equity. |
New and applicable accounting pronouncements | New and applicable accounting pronouncements: Accounting Standards Update (ASU) No. 2017-04: Intangibles – Goodwill and Other (Topic 350) This ASU simplifies the test for goodwill impairment. Specifically, these amendments eliminate Step 2 from the goodwill impairment test, and also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this ASU are effective for annual goodwill impairment tests in fiscal years beginning after December 15, 2019, and management does not believe the changes will have a material effect on the Company’s accounting and disclosures. ASU No. 2017-03: Accounting Changes and Error Corrections (Topic 250) This amendment includes the text of “SEC Staff Announcement: Disclosure of the Impact That Recently Issued Accounting Standards Will Have on the Financial Statements of a Registrant When Such Standards are Adopted in a Future Period. This staff announcement applies to ASU No. 2014-09, ASU No. 2016-02 and ASU 2016-03. The Company has enhanced its disclosures regarding the impact of recently issued accounting standards adopted in a future period will have on its accounting and disclosures in this footnote. ASU No. 2016-15: Statement of Cash Flows (Topic 230) This ASU provides specific guidance for eight cash flow classifications. The intention is to ensure that this ASU will eliminate any current or future diversity in classification and reporting. The amendments in this ASU are effective for reporting periods beginning after December 15, 2017, and management does not believe the changes will have a material effect on the Company’s consolidated financial statements. 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 has not yet determined 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. 2016-02: 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, 2018. The Company has little leasing activity and management has determined that the impact on the Company’s consolidated financial statements will be immaterial. 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 to 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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Summary of earnings per share | Twelve Months Ended Dec., 31 ($ in thousands - except per share data) 2016 2015 Distributed earnings allocated to common shares $ 1,180 $ 982 Undistributed earnings allocated to common shares 6,620 5,676 Net earnings allocated to common shares 7,800 6,658 Net earnings allocated to participating securities 9 5 Dividends on convertible preferred shares 975 956 Net Income allocated to common shares and participating securities $ 8,784 $ 7,619 Weighted average shares outstanding for basic earnings per share 4,877 4,884 Dilutive effect of stock compensation 47 88 Dilutive effect of convertible shares 1,452 1,451 Weighted average shares outstanding for diluted earnings per share 6,376 6,423 Basic earnings per common share $ 1.60 $ 1.36 Diluted earnings per common share $ 1.38 $ 1.19 |
Available-for-Sale Securities (
Available-for-Sale Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Available-for-Sale 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: December 31, 2016: U.S. Treasury and Government agencies $ 13,341 $ 69 $ (52 ) $ 13,358 Mortgage-backed securities 62,035 204 (636 ) 61,603 State and political subdivisions 14,606 530 (39 ) 15,097 Equity securities 70 - - 70 $ 90,052 $ 803 $ (727 ) $ 90,128 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 $ 455 $ 455 Due after one year through five years 7,750 7,870 Due after five years through ten years 7,045 7,225 Due after ten years 12,697 12,905 27,947 28,455 Mortgage-backed securities and equity securities 62,105 61,673 Totals $ 90,052 $ 90,128 |
Summary of securities with unrealized losses | ($ in thousands) Less than 12 Months 12 Months or Longer Total December 31, 2016 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Available-for-Sale Securities: U.S. Treasury and Government agencies $ 6,044 $ (52 ) $ - $ - $ 6,044 $ (52 ) Mortgage-backed securities 44,344 (607 ) 703 (29 ) 45,047 (636 ) State and political subdivisions 1,095 (39 ) - - 1,095 (39 ) $ 51,483 $ (698 ) $ 703 $ (29 ) $ 52,186 $ (727 ) ($ 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 ) |
Loans and Allowance for Loan 31
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Allowance for Loan Losses [Abstract] | |
Summary of categories of loans | Total Loans Non-Accrual Loans ($ in thousands) Dec. 2016 Dec. 2015 Dec. 2016 Dec. 2015 Commercial & Industrial $ 108,752 $ 86,542 190 188 Commercial RE & Construction 284,084 242,208 1,194 5,670 Agricultural & Farmland 52,475 43,835 4 7 Residential Real Estate 142,452 130,806 1,162 749 Consumer & Other 56,335 54,224 187 32 Total Loans $ 644,098 $ 557,615 $ 2,737 $ 6,646 Unearned Income $ 335 $ 44 Total Loans, net of unearned income $ 644,433 $ 557,659 Allowance for loan losses $ (7,725 ) $ (6,990 ) |
Summary loan commitments, unused lines of credit and standby letters of credit | ($ in thousands) 2016 2015 Loan commitments and unused lines of credit $ 143,553 $ 126,902 Standby letters of credit 708 1,026 Total $ 144,261 $ 127,928 |
Summary of allowance for loan and lease losses and recorded investment in loans based on portfolio segment and impairment method | Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Twelve Months Ended December 31, 2016 Beginning balance $ 914 $ 3,886 $ 204 $ 1,312 $ 674 $ 6,990 Charge Offs (135 ) (241 ) - (20 ) (105 ) $ (501 ) Recoveries 408 5 12 2 59 486 Provision 17 (329 ) 131 669 262 750 Ending Balance $ 1,204 $ 3,321 $ 347 $ 1,963 $ 890 $ 7,725 Loans Receivable at December 31, 2016 Allowance: Ending balance: individually evaluated for impairment $ 50 $ 119 $ - $ 124 $ 7 $ 300 Ending balance: collectively evaluated for impairment $ 1,154 $ 3,202 $ 347 $ 1,839 $ 883 $ 7,425 Loans: Ending balance: individually evaluated for impairment $ 50 $ 1,578 $ - $ 1,919 $ 248 $ 3,795 Ending balance: collectively evaluated for impairment $ 108,702 $ 282,506 $ 52,475 $ 140,533 $ 56,087 $ 640,303 Commercial Commercial RE Agricultural Residential Consumer ($'s in thousands) & Industrial & Construction & Farmland Real Estate & Other Total ALLOWANCE FOR LOAN AND LEASE LOSSES For the Twelve Months Ended December 31, 2015 Beginning balance $ 1,630 $ 2,857 $ 208 $ 1,308 $ 768 $ 6,771 Charge Offs (497 ) (303 ) - (56 ) (96 ) $ (952 ) Recoveries 26 3 3 29 10 71 Provision (245 ) 1,329 (7 ) 31 (8 ) 1,100 Ending Balance $ 914 $ 3,886 $ 204 $ 1,312 $ 674 $ 6,990 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 |
Summary of credit risk profile of the Company's loan portfolio based on rating category | December 31, 2016 Commercial Commercial RE Agricultural Residential Consumer ($ in thousands) & Industrial & Construction & Farmland Real Estate & Other Total 1-2 $ 1,149 $ 33 $ 9 $ 234 $ 3 $ 1,428 3 28,461 89,406 9,985 113,403 53,386 294,641 4 78,517 188,007 42,481 26,510 2,625 338,140 Total Pass (1 - 4) 108,127 277,446 52,475 140,147 56,014 634,209 Special Mention (5) - 5,030 - 518 123 5,671 Substandard (6) 150 1,291 - 625 61 2,127 Doubtful (7) 475 317 - 1,162 137 2,091 Loss (8) - - - - - - Total Loans $ 108,752 $ 284,084 $ 52,475 $ 142,452 $ 56,335 $ 644,098 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 December 31, 2016 Past Due Past Due 90 Days Due Current Receivable Commercial & Industrial $ 35 $ 50 $ 104 $ 189 $ 108,563 $108,752 Commercial RE & Construction 254 883 59 1,196 282,888 284,084 Agricultural & Farmland - - - - 52,475 52,475 Residential Real Estate 123 201 115 439 142,013 142,452 Consumer & Other 185 45 148 378 55,957 56,335 Total Loans $ 597 $ 1,179 $ 426 $ 2,202 $ 641,896 $644,098 ($ 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 | Twelve Months Ended December 31, 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 - 655 24 Agricultural & Farmland - - - - - Residential Real Estate 1,248 1,290 - 1,470 70 Consumer & Other 129 129 - 151 11 All Impaired Loans < $100,000 452 452 - 452 - With a specific allowance recorded: Commercial & Industrial 50 50 50 50 3 Commercial RE & Construction 941 941 119 1,010 45 Agricultural & Farmland - - - - - Residential Real Estate 671 672 124 751 30 Consumer & Other 119 118 7 123 7 Totals: Commercial & Industrial $ 50 $ 50 $ 50 $ 50 $ 3 Commercial RE & Construction $ 1,578 $ 1,578 $ 119 $ 1,665 $ 69 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,919 $ 1,962 $ 124 $ 2,221 $ 100 Consumer & Other $ 248 $ 247 $ 7 $ 274 $ 18 All Impaired Loans < $100,000 $ 452 $ 452 $ - $ 452 $ - 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 4,643 4,893 1,759 5,006 90 Agricultural & Farmland - - - - - Residential Real Estate 1,013 1,013 167 1,084 45 Consumer & Other 374 374 37 385 22 Totals: Commercial & Industrial $ 126 $ 1,214 $ - $ 1,388 $ - Commercial RE & Construction $ 5,753 $ 6,003 $ 1,759 $ 6,212 $ 117 Agricultural & Farmland $ - $ - $ - $ - $ - Residential Real Estate $ 1,670 $ 1,670 $ 167 $ 1,946 $ 97 Consumer & Other $ 464 $ 464 $ 37 $ 492 $ 31 All Impaired Loans < $100,000 $ 131 $ 131 $ - $ 131 $ - |
Summary of newly restructured loans by type of modification | December 31, 2016 ($ in thousands) Number of Loans Pre-Modification Post Modification Residential Real Estate 1 $ 220 $ 220 Commercial 1 307 307 Total Modifications 2 $ 527 $ 527 ($ in thousands) Interest Total Only Term Combination Modification Residential Real Estate $ - $ 220 $ - $ 220 Commercial - 307 - 307 Total Modifications $ - $ 527 $ - $ 527 December 31, 2015 ($ in thousands) Number of Loans Pre-Modification Post Modification Residential Real Estate 1 $ 22 $ 22 Commercial 1 314 314 Consumer & Other 1 39 39 Total Modifications 3 $ 375 $ 375 ($ in thousands) Interest Total Only Term Combination Modification Residential Real Estate $ - $ 22 $ - $ 22 Commercial - 314 - 314 Consumer & Other - 39 - 39 Total Modifications $ - $ 375 $ - $ 375 |
Mortgage Banking and Servicin32
Mortgage Banking and Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Banking and Servicing Rights [Abstract] | |
Summary of mortgage servicing rights capitalized and related amortization | ($ in thousands) 2016 2015 Carrying amount, beginning of year $ 7,152 $ 5,704 Mortgage servicing rights capitalized during the year 2,542 2,214 Mortgage servicing rights amortization during the year (1,340 ) (882 ) Net change in valuation allowance 68 116 Carrying amount, end of year $ 8,422 $ 7,152 Valuation allowance: Beginning of year $ 296 $ 412 Reduction (68 ) (116 ) End of year $ 228 $ 296 Fair Value, beginning of period $ 7,760 $ 6,358 Fair Value, end of period $ 9,656 $ 7,760 |
Derivative Financial Instrume33
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Financial Instruments [Abstract] | |
Schedule of fair values of derivative instruments on the balance sheet | Asset Derivatives Liability Derivatives December 31, 2016 December 31, 2016 ($ in thousands) Balance Sheet Fair Balance Sheet Fair Location Value Location Value Derivatives not designated as hedging instruments: Interest rate contracts Other Assets $ 623 Other Liabilities $ 623 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 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Premises and Equipment [Abstract] | |
Summary of premises and equipment | ($ in thousands) 2016 2015 Land $ 2,907 $ 2,501 Buildings and improvements 19,431 19,222 Equipment 11,042 10,566 Construction in progress 2,429 2,002 35,809 34,291 Less accumulated depreciation (16,680 ) (15,281 ) Net premises and equipment $ 19,129 $ 19,010 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangibles [Abstract] | |
Summary of carrying basis and accumulated amortization of recognized intangible assets | 2016 2015 ($ in thousands) Gross Accumulated Gross Accumulated Core deposits intangible $ 4,698 $ (4,675 ) $ 4,698 $ (4,668 ) Customer relationship intangible 200 (153 ) 200 (148 ) Banking intangibles 4,898 (4,828 ) 4,898 (4,816 ) |
Interest Bearing Deposits (Tabl
Interest Bearing Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Interest Bearing Deposits/ Borrowings [Abstract] | |
Scheduled maturities of time deposit | ($ in thousands) 2017 $ 93,693 2018 33,700 2019 44,238 2020 13,424 2021 12,060 Thereafter 601 $ 197,716 |
Securities Sold Under Repurch37
Securities Sold Under Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Securities Sold Under Repurchase Agreements [Abstract] | |
Summary of securities repurchase agreements | ($ in thousands) 2016 2015 Securities Sold Under Repurchase Agreements $ 10,532 $ 12,406 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Interest Bearing Deposits/ Borrowings [Abstract] | |
Aggregate annual maturities of federal home loan bank advances | ($ in thousands) Debt 2017 13,000 2018 7,000 2019 6,500 2020 - 2021 - Total $ 26,500 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Schedule of provision for income taxes | ($ in thousands) For The Year Ended 2016 2015 Taxes currently payable $ 3,379 $ 1,885 Deferred provision 738 1,519 Income tax expense $ 4,117 $ 3,404 |
Schedule of reconciliation of income tax expense | ($ in thousands) For The Year Ended 2016 2015 Computed at the statutory rate (34%) $ 4,387 $ 3,748 Increase (decrease) resulting from Tax exempt interest (218 ) (240 ) BOLI Income (98 ) (99 ) Other 46 (5 ) Actual tax expense $ 4,117 $ 3,404 |
Schedule of deferred tax | ($ in thousands) At December 31, 2016 2015 Deferred tax assets Allowance for loan losses $ 2,627 $ 2,377 Net deferred loan fees 98 104 Other 361 757 3,086 3,238 Deferred tax liabilities Depreciation (1,385 ) (1,335 ) Mortgage servicing rights (2,930 ) (2,468 ) Unrealized gains on available-for-sale securities (26 ) (335 ) Purchase accounting adjustments (1,659 ) (1,489 ) Prepaids (188 ) (285 ) FHLB stock dividends (466 ) (465 ) (6,654 ) (6,377 ) Net deferred tax liability $ (3,568 ) $ (3,139 ) |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of reclassification out of accumulated other comprehensive income | ($ in thousands) 2016 2015 Affected Line Item in the Realized gains included in net income $ 262 $ - Gains on investment securities 262 - Income before income taxes Tax effect (89 ) - Provision for income taxes Net of Tax $ 173 $ - Net income |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Matters [Abstract] | |
Summary of State Bank's actual capital amounts and ratios | To Be Well Capitalized For Capital Adequacy Under Prompt Corrective Actual Purposes Action Procedures ($ in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 Tier I Capital to average assets $ 74,183 9.31 % $ 31,875 4.0 % $ 39,844 5.0 % Tier I Common equity capital to risk-weighted assets 74,183 10.28 % 32,477 4.5 % 46,912 6.5 % Tier I Capital to risk-weighted assets 74,183 10.28 % 43,303 6.0 % 57,738 8.0 % Total Risk-based capital to risk-weighted assets 81,908 11.35 % 57,738 8.0 % 72,172 10.0 % As of December 31, 2015 Tier I Capital to average assets $ 64,914 9.10 % $ 28,534 4.0 % $ 35,668 5.0 % Tier I Common equity capital to risk-weighted assets 64,914 10.23 % 28,545 4.5 % 41,231 6.5 % Tier I Capital to risk-weighted assets 64,914 10.23 % 38,059 6.0 % 50,746 8.0 % Total Risk-based capital to risk-weighted assets 71,904 11.34 % 50,746 8.0 % 63,432 10.0 % |
Share Based Compensation Plan (
Share Based Compensation Plan (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Share Based Compensation Plan [Abstract] | |
Summary of option activity under Company's Plan | Shares Weighted-Average Exercise Price Weighted-Average Remaining Term Aggregate Intrinsic Value Outstanding, beginning of year 140,074 $ 8.12 Granted - - Exercised (38,514 ) 8.72 Forfeited (1,750 ) 9.56 Expired - - Outstanding, end of year 99,810 7.85 2.54 $ 818,741 Exercisable, end of year 99,810 7.85 2.54 $ 818,741 |
Summary of restricted stock activity under the Company's plan | Shares Weighted-Average Value per Share Nonvested, beginning of year 27,328 $ 8.77 Granted 17,280 10.03 Vested (9,110 ) 8.55 Forfeited - - Nonvested, end of year 35,498 $ 9.44 |
Disclosures About Fair Value 43
Disclosures About Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosures About Fair Value of Assets and Liabilities [Abstract] | |
Fair value measurements of securities measured at fair value on a recurring basis | ($ in thousands) Available-for-Sale Securities: Fair Values at 12/31/2016 (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 13,358 $ - $ 13,358 $ - Mortgage-backed securities 61,603 - 61,603 - State and political subdivisions 15,097 - 15,097 - Equity securities 70 - 70 - Interest rate contracts - assets 623 - 623 - Interest rate contracts - liabilities (623 ) - (623 ) - ($ in thousands) Available-for-Sale Securities: Fair Values at 12/31/2015 (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 non-recurring basis | ($ in thousands) Description Fair Values at 12/31/2016 (Level 1) (Level 2) (Level 3) Impaired loans $ 786 $ - $ - $ 786 Mortgage Servicing Rights 1,993 - - 1,993 ($ in thousands) Description Fair Values at 12/31/2015 (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 | ($ in thousands) Fair Value at 12/31/2016 Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent $ 786 Market comparable properties Comparability adjustments (%) Not available Mortgage servicing rights 1,993 Discounted cash flow Discount Rate 9.65 % Constant prepayment rate 7.61 % P&I earnings credit 0.76 % T&I earnings credit 1.60 % Inflation for cost of servicing 1.50 % ($ in thousands) Fair Value at 12/31/2015 Valuation Technique Unobservable Inputs Range (Weighted Average) Collateral-dependent $ 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 | December 31, 2016 Carrying Fair Value Measurments Using $’s in thousands Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 17,012 $ 17,012 $ - $ - Loans held for sale 4,434 - 4,503 - Loans, net of allowance for loan losses 636,708 - - 636,909 Federal Reserve and FHLB Bank stock, at cost 3,748 - 3,748 - Interest receivable 1,512 - 1,512 - Mortgage Servicing Rights 8,422 - - 9,656 Financial liabilities Deposits $ 673,073 $ 125,189 $ 550,990 $ - Repurchase agreements 10,532 - 10,532 - FHLB advances 26,500 - 26,477 - Trust preferred securities 10,310 - 7,422 - Interest payable 408 - 408 - December 31, 2015 Carrying Fair Value Measurments Using $’s in thousands 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 - Interest receivable 1,260 - 1,260 - Mortgage Servicing Rights 7,152 - - 7,760 Financial liabilities Deposits $ 586,453 $ 113,113 $ 475,468 $ - Repurchase agreements 12,406 - 12,406 - FHLB advances 35,000 - 34,870 - Trust preferred securities 10,310 - 7,165 - Interest payable 264 - 264 - |
Condensed Financial Informati44
Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information [Abstract] | |
Schedule of condensed balance sheets | 2016 2015 Assets Cash and cash equivalents $ 4,681 $ 9,157 Investment in banking subsidiaries 91,308 82,245 Investment in nonbanking subsidiaries 1,417 1,488 Other assets 673 274 Total assets $ 98,079 $ 93,164 Liabilities Trust preferred securities $ 10,000 $ 10,000 Borrowings from nonbanking subsidiaries 310 310 Other liabilities & accrued interest payable 1,221 1,613 Total liabilities 11,531 11,923 Stockholders' Equity 86,548 81,241 Total liabilities and stockholders' equity $ 98,079 $ 93,164 |
Schedule of condensed statements of income and comprehensive income | 2016 2015 Condensed Statements of Income & Comprehensive Income Dividends from subsidiaries: Banking subsidiaries $ - $ 1,000 Total income - 1,000 Expenses Interest expense 253 212 Other expense 969 922 Total expenses 1,222 1,134 Income before income tax (1,222 ) (134 ) Income tax benefit (416 ) (385 ) Income before equity in undistributed income of subsidiaries (806 ) 251 Equity in undistributed income of subsidiaries Banking subsidiaries 9,662 7,369 Nonbanking subsidiaries (72 ) (1 ) Total 9,590 7,368 Net income $ 8,784 $ 7,619 Preferred stock dividends 975 956 Net income available to common shareholders $ 7,809 $ 6,663 Comprehensive income $ 8,185 $ 7,351 |
Schedule of condensed statements of cash flows | 2016 2015 Operating Activities Net income $ 8,784 $ 7,619 Items not requiring (providing) cash Equity in undistributed net income of subsidiaries (9,590 ) (7,368 ) Expense of stock option plan 114 81 Other assets (401 ) (166 ) Other liabilities (391 ) (1,581 ) Net cash used in operating activities (1,484 ) (1,415 ) Financing Activities Dividends on common stock (1,180 ) (983 ) Dividends on preferred stock (975 ) (956 ) Proceeds from stock compensation 331 67 Repurchase of common stock (1,168 ) (2 ) Net cash used in financing activities (2,992 ) (1,874 ) Net Change in Cash and Cash Equivalents (4,476 ) (3,289 ) Cash and Cash Equivalents at Beginning of Year 9,157 12,446 Cash and Cash Equivalents at End of Year $ 4,681 $ 9,157 |
Organization and Summary of S45
Organization and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Organization and Summary of Significant Accounting Policies (Textual) | |
Uncertain income tax positions | |
Maximum period of loan non-accrual status past due | 90 days |
Income tax examination, Description | The term more likely than not means a likelihood of more than 50 percent; the term "upon examination" also includes resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information |
Minimum [Member] | |
Organization and Summary of Significant Accounting Policies (Textual) | |
Intangible assets, weighted-average periods | 1 year |
Software amortized period | 1 year |
Maximum [Member] | |
Organization and Summary of Significant Accounting Policies (Textual) | |
Intangible assets, weighted-average periods | 15 years |
Software amortized period | 3 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Distributed earnings allocated to common shares | $ 1,180 | $ 982 |
Undistributed earnings allocated to common shares | 6,620 | 5,676 |
Net earnings allocated to common shares | 7,800 | 6,658 |
Net earnings allocated to participating securities | 9 | 5 |
Dividends on convertible preferred shares | 975 | 956 |
Net Income allocated to common shares and participating securities | $ 8,784 | $ 7,619 |
Weighted average shares outstanding for basic earnings per share | 4,877 | 4,884 |
Dilutive effect of stock compensation | 47 | 88 |
Dilutive effect of convertible shares | 1,452 | 1,451 |
Weighted average shares outstanding for diluted earnings per share | 6,376 | 6,423 |
Basic earnings per common share | $ 1.60 | $ 1.36 |
Diluted earnings per common share | $ 1.38 | $ 1.19 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Earnings Per Share (Textual) | |
Antidilutive securities excluded from computation of earnings per share | shares | 35,424 |
Minimum [Member] | |
Earnings Per Share (Textual) | |
Shares issued price per share | $ 11.50 |
Maximum [Member] | |
Earnings Per Share (Textual) | |
Shares issued price per share | $ 14.15 |
Available-for-Sale Securities48
Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities | ||
Amortized Cost | $ 90,052 | $ 88,805 |
Gross Unrealized Gains | 803 | 1,411 |
Gross Unrealized Losses | (727) | (427) |
Fair Value | 90,128 | 89,789 |
U.S. Treasury and Government agencies [Member] | ||
Summary of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities | ||
Amortized Cost | 13,341 | 10,804 |
Gross Unrealized Gains | 69 | 101 |
Gross Unrealized Losses | (52) | |
Fair Value | 13,358 | 10,905 |
Mortgage-backed securities [Member] | ||
Summary of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities | ||
Amortized Cost | 62,035 | 61,459 |
Gross Unrealized Gains | 204 | 311 |
Gross Unrealized Losses | (636) | (427) |
Fair Value | 61,603 | 61,343 |
State and political subdivisions [Member] | ||
Summary of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities | ||
Amortized Cost | 14,606 | 16,519 |
Gross Unrealized Gains | 530 | 999 |
Gross Unrealized Losses | (39) | |
Fair Value | 15,097 | 17,518 |
Equity securities [Member] | ||
Summary of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities | ||
Amortized Cost | 70 | 23 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 70 | $ 23 |
Available-for-Sale Securities49
Available-for-Sale Securities (Details 1) - USD ($) $ in Thousands | Dec. 31, 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 | $ 455 | |
Available for Sale, Amortized Cost, Due after one year through five years | 7,750 | |
Available for Sale, Amortized Cost, Due after five years through ten years | 7,045 | |
Available for Sale, Amortized Cost, Due after ten years | 12,697 | |
Available for Sale, Amortized Cost | 27,947 | |
Available for Sale, Amortized Cost, Totals | 90,052 | $ 88,805 |
Available for Sale, Fair Value, Within one year | 455 | |
Available for Sale, Fair Value, Due after one year through five years | 7,870 | |
Available for Sale, Fair value, Due after five years through ten years | 7,225 | |
Available for Sale, Fair Value, Due after ten years | 12,905 | |
Available for Sale, Fair Value | 28,455 | |
Available for Sale, Fair Value, Totals | 90,128 | $ 89,789 |
Available for Sale, Amortized Cost, Mortgage-backed securities and equity securities | 62,105 | |
Available for Sale, Fair Value, Mortgage-backed securities and equity securities | $ 61,673 |
Available-for-Sale Securities50
Available-for-Sale Securities (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of securities with unrealized losses | ||
Less than 12 Months, Fair Value | $ 51,483 | |
Less than 12 Months, Unrealized Losses | (698) | |
12 Months or Longer, Fair Value | 703 | |
12 Months or Longer, Unrealized Losses | (29) | |
Total Fair Value | 52,186 | $ 37,200 |
Total Unrealized Losses | (727) | |
U.S. Treasury and Government agencies [Member] | ||
Summary of securities with unrealized losses | ||
Less than 12 Months, Fair Value | 6,044 | |
Less than 12 Months, Unrealized Losses | (52) | |
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Total Fair Value | 6,044 | |
Total Unrealized Losses | (52) | |
Mortgage-backed securities [Member] | ||
Summary of securities with unrealized losses | ||
Less than 12 Months, Fair Value | 44,344 | 30,184 |
Less than 12 Months, Unrealized Losses | (607) | (253) |
12 Months or Longer, Fair Value | 703 | 7,061 |
12 Months or Longer, Unrealized Losses | (29) | (174) |
Total Fair Value | 45,047 | 37,245 |
Total Unrealized Losses | (636) | $ (427) |
State and political subdivisions [Member] | ||
Summary of securities with unrealized losses | ||
Less than 12 Months, Fair Value | 1,095 | |
Less than 12 Months, Unrealized Losses | (39) | |
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Total Fair Value | 1,095 | |
Total Unrealized Losses | $ (39) |
Available-for-Sale Securities51
Available-for-Sale Securities (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Available-for-Sale Securities (Textual) | ||
Fair value of securities pledged as collateral | $ 44,300 | $ 46,200 |
Securities delivered for repurchase agreements | 14,600 | 15,800 |
Gross gains realized from sales of available-for-sale securities | 260 | |
Gross losses realized from sales of available-for-sale securities | ||
Net gain on sales of securities | 262 | |
Total fair value of investments | 52,186 | $ 37,200 |
Unrealized loss on the securities portfolio | 300 | |
Tax expense for net security gains | $ 90 | |
Fair value as a percentage of available-for-sale investment portfolio | 58.00% | 41.00% |
Loans and Allowance for Loan 52
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of categories of loans | ||
Total loans | $ 644,098 | $ 557,615 |
Non-Accrual Loans | 2,737 | 6,646 |
Unearned Income | 335 | 44 |
Total Loans, net of unearned income | 644,433 | 557,659 |
Allowance for loan losses | (7,725) | (6,990) |
Commercial & Industrial [Member] | ||
Summary of categories of loans | ||
Total loans | 108,752 | 86,542 |
Non-Accrual Loans | 190 | 188 |
Commercial RE & Construction [Member] | ||
Summary of categories of loans | ||
Total loans | 284,084 | 242,208 |
Non-Accrual Loans | 1,194 | 5,670 |
Agricultural & Farmland [Member] | ||
Summary of categories of loans | ||
Total loans | 52,475 | 43,835 |
Non-Accrual Loans | 4 | 7 |
Residential Real Estate [Member] | ||
Summary of categories of loans | ||
Total loans | 142,452 | 130,806 |
Non-Accrual Loans | 1,162 | 749 |
Consumer & Other [Member] | ||
Summary of categories of loans | ||
Total loans | 56,335 | 54,224 |
Non-Accrual Loans | $ 187 | $ 32 |
Loans and Allowance for Loan 53
Loans and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary loan commitments, unused lines of credit and standby letters of credit | ||
Letters of credit outstanding, Amount | $ 144,261 | $ 127,928 |
Loan commitments and unused lines of credit [Member] | ||
Summary loan commitments, unused lines of credit and standby letters of credit | ||
Letters of credit outstanding, Amount | 143,553 | 126,902 |
Standby letters of credit [Member] | ||
Summary loan commitments, unused lines of credit and standby letters of credit | ||
Letters of credit outstanding, Amount | $ 708 | $ 1,026 |
Loans and Allowance for Loan 54
Loans and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of allowance for loan losses and recorded investment in loans based on portfolio segment and impairment method | ||
Beginning balance | $ 6,990 | $ 6,771 |
Charge Offs | (501) | (952) |
Recoveries | 486 | 71 |
Provision | 750 | 1,100 |
Ending Balance | 7,725 | 6,990 |
Allowance: Ending balance: individually evaluated for impairment | 300 | 1,963 |
Allowance: Ending balance: collectively evaluated for impairment | 7,425 | 5,027 |
Loans, Ending balance individually evaluated for impairment | 3,795 | 8,057 |
Loans, Ending balance collectively evaluated for impairment | 640,303 | 549,558 |
Commercial & Industrial [Member] | ||
Summary of allowance for loan losses and recorded investment in loans based on portfolio segment and impairment method | ||
Beginning balance | 914 | 1,630 |
Charge Offs | (135) | (497) |
Recoveries | 408 | 26 |
Provision | 17 | (245) |
Ending Balance | 1,204 | 914 |
Allowance: Ending balance: individually evaluated for impairment | 50 | |
Allowance: Ending balance: collectively evaluated for impairment | 1,154 | 914 |
Loans, Ending balance individually evaluated for impairment | 50 | 126 |
Loans, Ending balance collectively evaluated for impairment | 108,702 | 86,416 |
Commercial RE & Construction [Member] | ||
Summary of allowance for loan losses and recorded investment in loans based on portfolio segment and impairment method | ||
Beginning balance | 3,886 | 2,857 |
Charge Offs | (241) | (303) |
Recoveries | 5 | 3 |
Provision | (329) | 1,329 |
Ending Balance | 3,321 | 3,886 |
Allowance: Ending balance: individually evaluated for impairment | 119 | 1,759 |
Allowance: Ending balance: collectively evaluated for impairment | 3,202 | 2,127 |
Loans, Ending balance individually evaluated for impairment | 1,578 | 5,754 |
Loans, Ending balance collectively evaluated for impairment | 282,506 | 236,454 |
Agricultural & Farmland [Member] | ||
Summary of allowance for loan losses and recorded investment in loans based on portfolio segment and impairment method | ||
Beginning balance | 204 | 208 |
Charge Offs | ||
Recoveries | 12 | 3 |
Provision | 131 | (7) |
Ending Balance | 347 | 204 |
Allowance: Ending balance: individually evaluated for impairment | ||
Allowance: Ending balance: collectively evaluated for impairment | 347 | 204 |
Loans, Ending balance individually evaluated for impairment | ||
Loans, Ending balance collectively evaluated for impairment | 52,475 | 43,835 |
Residential Real Estate [Member] | ||
Summary of allowance for loan losses and recorded investment in loans based on portfolio segment and impairment method | ||
Beginning balance | 1,312 | 1,308 |
Charge Offs | (20) | (56) |
Recoveries | 2 | 29 |
Provision | 669 | 31 |
Ending Balance | 1,963 | 1,312 |
Allowance: Ending balance: individually evaluated for impairment | 124 | 167 |
Allowance: Ending balance: collectively evaluated for impairment | 1,839 | 1,145 |
Loans, Ending balance individually evaluated for impairment | 1,919 | 1,713 |
Loans, Ending balance collectively evaluated for impairment | 140,533 | 129,093 |
Consumer & Other [Member] | ||
Summary of allowance for loan losses and recorded investment in loans based on portfolio segment and impairment method | ||
Beginning balance | 674 | 768 |
Charge Offs | (105) | (96) |
Recoveries | 59 | 10 |
Provision | 262 | (8) |
Ending Balance | 890 | 674 |
Allowance: Ending balance: individually evaluated for impairment | 7 | 37 |
Allowance: Ending balance: collectively evaluated for impairment | 883 | 637 |
Loans, Ending balance individually evaluated for impairment | 248 | 464 |
Loans, Ending balance collectively evaluated for impairment | $ 56,087 | $ 53,760 |
Loans and Allowance for Loan 55
Loans and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | $ 644,098 | $ 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 | 1,428 | 1,538 |
Loan Grade 3 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 294,641 | 280,680 |
Loan Grade 4 Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 338,140 | 260,506 |
Total Pass [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 634,209 | 542,724 |
Special Mention [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 5,671 | 6,416 |
Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 2,127 | 1,741 |
Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 2,091 | 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 | 108,752 | 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 | 1,149 | 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 | 28,461 | 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 | 78,517 | 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 | 108,127 | 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 | 475 | 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 | 284,084 | 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 | 33 | 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 | 89,406 | 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 | 188,007 | 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 | 277,446 | 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 | 5,030 | 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 | 1,291 | 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 | 317 | 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 | 52,475 | 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 | 9 | 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 | 9,985 | 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 | 42,481 | 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 | 52,475 | 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 | 142,452 | 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 | 234 | |
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 | 113,403 | 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 | 26,510 | 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 | 140,147 | 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 | 518 | 756 |
Residential Real Estate [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 625 | 420 |
Residential Real Estate [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 1,162 | 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 | 56,335 | 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 | 3 | 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 | 53,386 | 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 | 2,625 | 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 | 56,014 | 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 | 123 | 70 |
Consumer & Other [Member] | Substandard [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 61 | 139 |
Consumer & Other [Member] | Doubtful [Member] | ||
Summary of credit risk profile of the Company's loan portfolio based on rating category | ||
Total Loans | 137 | 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 56
Loans and Allowance for Loan Losses (Details 4) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 2,202 | $ 6,145 |
Current | 641,896 | 551,470 |
Total Loans Receivable | 644,098 | 557,615 |
30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 597 | 261 |
60-89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 1,179 | 258 |
Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 426 | 5,626 |
Commercial & Industrial [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 189 | 248 |
Current | 108,563 | 86,294 |
Total Loans Receivable | 108,752 | 86,542 |
Commercial & Industrial [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 35 | |
Commercial & Industrial [Member] | 60-89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 50 | 60 |
Commercial & Industrial [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 104 | 188 |
Residential Real Estate [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 439 | 452 |
Current | 142,013 | 130,354 |
Total Loans Receivable | 142,452 | 130,806 |
Residential Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 123 | 98 |
Residential Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 201 | 198 |
Residential Real Estate [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 115 | 156 |
Commercial RE & Construction [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 1,196 | 5,379 |
Current | 282,888 | 236,829 |
Total Loans Receivable | 284,084 | 242,208 |
Commercial RE & Construction [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 254 | 99 |
Commercial RE & Construction [Member] | 60-89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 883 | |
Commercial RE & Construction [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 59 | 5,280 |
Agricultural & Farmland [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | ||
Current | 52,475 | 43,835 |
Total Loans Receivable | 52,475 | 43,835 |
Agricultural & Farmland [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | ||
Agricultural & Farmland [Member] | 60-89 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 | ||
Consumer & Other [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 378 | 66 |
Current | 55,957 | 54,158 |
Total Loans Receivable | 56,335 | 54,224 |
Consumer & Other [Member] | 30 to 59 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 185 | 64 |
Consumer & Other [Member] | 60-89 Days Past Due [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | 45 | |
Consumer & Other [Member] | Greater Than 90 Days [Member] | ||
Summary of loan portfolio aging analysis | ||
Total Past Due | $ 148 | $ 2 |
Loans and Allowance for Loan 57
Loans and Allowance for Loan Losses (Details 5) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | 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, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 1,388 | |
With no related allowance recorded, Interest Income Recognized | ||
With a specific allowance recorded, Recorded Investment | 50 | |
With a specific allowance recorded, Unpaid Principal Balance | 50 | |
With a specific allowance recorded, Related Allowance | 50 | |
With a specific allowance recorded, Average Recorded Investment | 50 | |
With a specific allowance recorded, Interest Income Recognized | 3 | |
Total Recorded Investment | 50 | 126 |
Total Unpaid Principal Balance | 50 | 1,214 |
Total Related Allowance | 50 | |
Total Average Recorded Investment | 50 | 1,388 |
Total Interest Income Recognized | 3 | |
Commercial RE & Construction [Member] | ||
Summary of Impaired loan activity | ||
With no related allowance recorded, Recorded Investment | 637 | 1,110 |
With no related allowance recorded, Unpaid Principal Balance | 637 | 1,110 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 655 | 1,206 |
With no related allowance recorded, Interest Income Recognized | 24 | 27 |
With a specific allowance recorded, Recorded Investment | 941 | 4,643 |
With a specific allowance recorded, Unpaid Principal Balance | 941 | 4,893 |
With a specific allowance recorded, Related Allowance | 119 | 1,759 |
With a specific allowance recorded, Average Recorded Investment | 1,010 | 5,006 |
With a specific allowance recorded, Interest Income Recognized | 45 | 90 |
Total Recorded Investment | 1,578 | 5,753 |
Total Unpaid Principal Balance | 1,578 | 6,003 |
Total Related Allowance | 119 | 1,759 |
Total Average Recorded Investment | 1,665 | 6,212 |
Total Interest Income Recognized | 69 | 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, Related Allowance | ||
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 | 1,248 | 657 |
With no related allowance recorded, Unpaid Principal Balance | 1,290 | 657 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 1,470 | 862 |
With no related allowance recorded, Interest Income Recognized | 70 | 52 |
With a specific allowance recorded, Recorded Investment | 671 | 1,013 |
With a specific allowance recorded, Unpaid Principal Balance | 672 | 1,013 |
With a specific allowance recorded, Related Allowance | 124 | 167 |
With a specific allowance recorded, Average Recorded Investment | 751 | 1,084 |
With a specific allowance recorded, Interest Income Recognized | 30 | 45 |
Total Recorded Investment | 1,919 | 1,670 |
Total Unpaid Principal Balance | 1,962 | 1,670 |
Total Related Allowance | 124 | 167 |
Total Average Recorded Investment | 2,221 | 1,946 |
Total Interest Income Recognized | 100 | 97 |
Consumer & Other [Member] | ||
Summary of Impaired loan activity | ||
With no related allowance recorded, Recorded Investment | 129 | 90 |
With no related allowance recorded, Unpaid Principal Balance | 129 | 90 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 151 | 107 |
With no related allowance recorded, Interest Income Recognized | 11 | 9 |
With a specific allowance recorded, Recorded Investment | 119 | 374 |
With a specific allowance recorded, Unpaid Principal Balance | 118 | 374 |
With a specific allowance recorded, Related Allowance | 7 | 37 |
With a specific allowance recorded, Average Recorded Investment | 123 | 385 |
With a specific allowance recorded, Interest Income Recognized | 7 | 22 |
Total Recorded Investment | 248 | 464 |
Total Unpaid Principal Balance | 247 | 464 |
Total Related Allowance | 7 | 37 |
Total Average Recorded Investment | 274 | 492 |
Total Interest Income Recognized | 18 | 31 |
All Impaired Loans less than $100,000 [Member] | ||
Summary of Impaired loan activity | ||
With no related allowance recorded, Recorded Investment | 452 | 131 |
With no related allowance recorded, Unpaid Principal Balance | 452 | 131 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 452 | 131 |
With no related allowance recorded, Interest Income Recognized | ||
Total Recorded Investment | 452 | 131 |
Total Unpaid Principal Balance | 452 | 131 |
Total Related Allowance | ||
Total Average Recorded Investment | 452 | 131 |
Total Interest Income Recognized |
Loans and Allowance for Loan 58
Loans and Allowance for Loan Losses (Details 6) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($)Loan | |
Financing receivable newly restructured loans by type of modification [Abstract] | ||
Number of Loans | Loan | 2 | 3 |
Pre-Modification Recorded Balance | $ 527 | $ 375 |
Post Modification Recorded Balance | 527 | 375 |
Interest Only | ||
Term | 527 | 375 |
Combination | ||
Total Modification | $ 527 | $ 375 |
Residential Real Estate [Member] | ||
Financing receivable newly restructured loans by type of modification [Abstract] | ||
Number of Loans | Loan | 1 | 1 |
Pre-Modification Recorded Balance | $ 220 | $ 22 |
Post Modification Recorded Balance | 220 | 22 |
Interest Only | ||
Term | 220 | 22 |
Combination | ||
Total Modification | $ 220 | $ 22 |
Commercial [Member] | ||
Financing receivable newly restructured loans by type of modification [Abstract] | ||
Number of Loans | Loan | 1 | 1 |
Pre-Modification Recorded Balance | $ 307 | $ 314 |
Post Modification Recorded Balance | 307 | 314 |
Interest Only | ||
Term | 307 | 314 |
Combination | ||
Total Modification | $ 307 | $ 314 |
Consumer & Other [Member] | ||
Financing receivable newly restructured loans by type of modification [Abstract] | ||
Number of Loans | Loan | 1 | |
Pre-Modification Recorded Balance | $ 39 | |
Post Modification Recorded Balance | 39 | |
Interest Only | ||
Term | 39 | |
Combination | ||
Total Modification | $ 39 |
Loans and Allowance for Loan 59
Loans and Allowance for Loan Losses (Details Textual) | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Loans and Allowance for Loan Losses (Textual) | |
Principal amount outstanding of loans held-in-portfolio | $ 100,000 |
Impaired loans which included in groups of homogenous loans | Impaired loans less than $100,000 are included in groups of homogenous loans. |
Mortgage Banking and Servicin60
Mortgage Banking and Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of mortgage servicing rights capitalized and related amortization | ||
Carrying amount, beginning of year | $ 7,152 | $ 5,704 |
Mortgage servicing rights capitalized during the year | 2,542 | 2,214 |
Mortgage servicing rights amortization during the year | (1,340) | (880) |
Net change in valuation allowance | 68 | 116 |
Carrying amount, end of year | 8,422 | 7,152 |
Valuation allowance: | ||
Beginning of year | 296 | 412 |
Reduction | (68) | (116) |
End of year | 228 | 296 |
Fair Value, beginning of period | 7,760 | 6,358 |
Fair Value, end of period | $ 9,656 | $ 7,760 |
Mortgage Banking and Servicin61
Mortgage Banking and Servicing Rights (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Mortgage Banking and Servicing Rights (Textual) | ||
Unpaid principal balance of mortgage loans | $ 899.7 | $ 772.5 |
Contractually specified servicing fees | $ 2.1 | $ 1.8 |
Derivative Financial Instrume62
Derivative Financial Instruments (Details) - Derivatives not designated as hedging instruments [Member] - Interest rate contracts [Member] - USD ($) $ in Thousands | Dec. 31, 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 | $ 623 | $ 490 |
Other Liabilities [Member] | ||
Fair value of the Company's derivative financial instruments, as well as their classification on the balance sheet | ||
Liability Derivatives | $ 623 | $ 490 |
Derivative Financial Instrume63
Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative Financial Instruments (Textual) | ||
Notional amount of customer-facing swaps | $ 33.2 | $ 17.6 |
Cash as collateral | $ 0.1 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of premises and equipment | ||
Property, Plant and Equipment, Gross | $ 35,809 | $ 34,291 |
Less accumulated depreciation | (16,680) | (15,281) |
Net premises and equipment | 19,129 | 19,010 |
Land [Member] | ||
Summary of premises and equipment | ||
Property, Plant and Equipment, Gross | 2,907 | 2,501 |
Buildings and improvements [Member] | ||
Summary of premises and equipment | ||
Property, Plant and Equipment, Gross | 19,431 | 19,222 |
Equipment [Member] | ||
Summary of premises and equipment | ||
Property, Plant and Equipment, Gross | 11,042 | 10,566 |
Construction in progress [Member] | ||
Summary of premises and equipment | ||
Property, Plant and Equipment, Gross | $ 2,429 | $ 2,002 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Core deposits intangible [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | $ 4,698 | $ 4,698 |
Accumulated Amortization | (4,675) | (4,668) |
Customer relationship intangible [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 200 | 200 |
Accumulated Amortization | (153) | (148) |
Banking intangibles [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 4,898 | 4,898 |
Accumulated Amortization | $ (4,828) | $ (4,816) |
Goodwill and Intangibles (Det66
Goodwill and Intangibles (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangibles (Textual) | ||
Intangible amortization expense | $ 13 | $ 201 |
Goodwill balance | 16,400 | |
Core Deposits and Other [Member] | ||
Goodwill and Intangibles (Textual) | ||
Intangible amortization expense | $ 10 | $ 200 |
Interest Bearing Deposits (Deta
Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of scheduled maturities of time deposit | ||
2,017 | $ 93,693 | |
2,018 | 33,700 | |
2,019 | 44,238 | |
2,020 | 13,424 | |
2,021 | 12,060 | |
Thereafter | 601 | |
Time Deposits | $ 197,716 | $ 159,038 |
Interest Bearing Deposits (De68
Interest Bearing Deposits (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Bearing Deposits (Textual) | ||
Interest-bearing time deposits in denominations of $250,000 or more | $ 11,100 | $ 7,400 |
Certificates of deposit obtained from brokers | $ 12,700 | 5,200 |
Deposits maturity date | Between 2017 and 2021. | |
Time deposits certificate of deposit account registry service | $ 61,600 | $ 37,100 |
Cash FDIC insured | 250,000 | |
Cash CDARS program insured | 250,000 | |
State bank Program | $ 250,000 |
Securities Sold Under Repurch69
Securities Sold Under Repurchase Agreements (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Securities Sold Under Repurchase Agreements [Abstract] | ||
Securities Sold Under Repurchase Agreements | $ 10,532 | $ 12,406 |
Securities Sold Under Repurch70
Securities Sold Under Repurchase Agreements (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Securities Sold Under Repurchase Agreements (Textual) | ||
Purchases of federal funds | $ 23,000 | $ 15,000 |
Federal funds line drawn upon | 0 | 0 |
Retail repurchase agreements total amount | 10,500 | |
Repurchase agreements securities | 10,532 | 12,406 |
Mortgage-backed securities | 9,500 | 11,000 |
Retail Repurchase Agreements [Member] | ||
Securities Sold Under Repurchase Agreements (Textual) | ||
Maximum amount of outstanding agreements at any month-end | 20,600 | 20,300 |
Monthly average of such agreements totaled | $ 15,000 | $ 17,100 |
Short-term borrowings mature | within one month. | within one month. |
Repurchase agreements securities | $ 5,100 | $ 4,900 |
Mortgage-backed securities maturity, basis of allocation | This collateral has maturities from 2018 through 2042. |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of aggregate annual maturities of Federal Home Loan Bank advances | ||
2,017 | $ 13,000 | |
2,018 | 7,000 | |
2,019 | 6,500 | |
2,020 | ||
2,021 | ||
Total | $ 26,500 | $ 35,000 |
Borrowings (Details Textual)
Borrowings (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Borrowings (Textual) | ||
Capital securities, Description | On September 15, 2005, RST II, a wholly-owned subsidiary of the Company, closed a pooled private offering of 10,000 Capital Securities with a liquidation amount of $1,000 per security. The proceeds of the offering were loaned to the Company in exchange for junior subordinated debentures with terms similar to the Capital Securities. Distributions on the Capital Securities are payable quarterly at a variable rate that is based upon the 3-month LIBOR plus 1.80 percent and are included in interest expense in the consolidated financial statements. These securities may be included in Tier 1 capital (with certain limitations applicable) under current regulatory guidelines and interpretations. | |
Advances from Federal Home Loan Banks | $ 26,500 | $ 35,000 |
Minimum [Member] | ||
Borrowings (Textual) | ||
Interest rate | 0.74% | |
Maximum [Member] | ||
Borrowings (Textual) | ||
Interest rate | 1.96% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of provision for income taxes | ||
Taxes currently payable | $ 3,379 | $ 1,885 |
Deferred provision | 738 | 1,519 |
Income tax expense | $ 4,117 | $ 3,404 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of reconciliation of income tax expense | ||
Computed at the statutory rate (34%) | $ 4,387 | $ 3,748 |
Increase (decrease) resulting from | ||
Tax exempt interest | (218) | (240) |
BOLI Income | (98) | (99) |
Other | 46 | (5) |
Actual tax expense | $ 4,117 | $ 3,404 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets | ||
Allowance for loan losses | $ 2,627 | $ 2,377 |
Net deferred loan fees | 98 | 104 |
Other | 361 | 757 |
Deferred Tax Assets, Gross | 3,086 | 3,238 |
Deferred tax liabilities | ||
Depreciation | (1,385) | (1,335) |
Mortgage servicing rights | (2,930) | (2,468) |
Unrealized gains on available-for-sale securities | (26) | (335) |
Purchase accounting adjustments | (1,659) | (1,489) |
Prepaids | (188) | (285) |
FHLB stock dividends | (466) | (465) |
Deferred Tax Liabilities, Gross | (6,654) | (6,377) |
Net deferred tax liability | $ (3,568) | $ (3,139) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes (Textual) | ||
Statutory income tax rate | 34.00% | 34.00% |
Accumulated Other Comprehensi77
Accumulated Other Comprehensive Income (Details) - Available-for-sale Securities [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Realized gains included in net income | $ 262 | |
Realized gain total | 262 | |
Tax effect | (89) | |
Net of tax | $ 173 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of State Bank's actual capital amounts and ratios | ||
Tier I Capital to average assets actual amount | $ 74,183 | $ 64,914 |
Tier I Capital to average assets for capital adequacy purposes amount | 31,875 | 28,534 |
Tier I Capital to average assets to be well capitalized under prompt corrective action procedures amount | 39,844 | 35,668 |
Tier I Common equity capital to risk-weighted assets actual amount | 74,183 | 64,914 |
Tier I Common equity capital to risk-weighted assets for capital adequacy purposes | 32,477 | 28,545 |
Tier I Common equity capital to risk-weighted assets to be well capitalized under prompt corrective action procedures amount | 46,912 | 41,231 |
Tier I Capital to risk-weighted assets actual amount | 74,183 | 64,914 |
Tier I Capital to risk-weighted assets for capital adequacy purposes | 43,303 | 38,059 |
Tier I Capital to risk-weighted assets to be well capitalized under prompt corrective action procedures | 57,738 | 50,746 |
Total Risk-based capital to risk-weighted assets actual amount | 81,908 | 71,904 |
Total Risk-based capital to risk-weighted assets for capital adequacy purposes amount | 57,738 | 50,746 |
Total Risk-based capital to risk-weighted assets to be well capitalized under prompt corrective action procedures amount | $ 72,172 | $ 63,432 |
Tier I Capital to average assets actual ratio | 9.31% | 9.10% |
Tier I Capital to average assets for capital adequacy purposes ratio | 4.00% | 4.00% |
Tier I Capital to average assets to be well capitalized under prompt corrective action procedures ratio | 5.00% | 5.00% |
Tier I Common equity capital to risk-weighted assets actual ratio | 10.28% | 10.23% |
Tier I Common equity capital to risk-weighted assets for capital adequacy purposes | 4.50% | 4.50% |
Tier I Common equity capital to risk-weighted assets to be well capitalized under prompt corrective action procedures ratio | 6.50% | 6.50% |
Tier I Capital to risk-weighted assets actual ratio | 10.28% | 10.23% |
Tier I Capital to risk-weighted assets for capital adequacy purposes ratio | 6.00% | 6.00% |
Tier I Capital to risk-weighted assets to be well capitalized under prompt corrective action procedures ratio | 8.00% | 8.00% |
Total Risk-based capital to risk-weighted assets actual ratio | 11.35% | 11.34% |
Total Risk-based capital to risk-weighted assets capital adequacy purposes ratio | 8.00% | 8.00% |
Total Risk-based capital to risk-weighted assets to be well capitalized under prompt corrective action procedures ratio | 10.00% | 10.00% |
Regulatory Matters (Details Tex
Regulatory Matters (Details Textual) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Matters (Textual) | |
Capital conservation buffer percentage | 0.625% |
2015 [Member] | |
Regulatory Matters (Textual) | |
Capital conservation buffer percentage | 0.00% |
2019 [Member] | |
Regulatory Matters (Textual) | |
Capital conservation buffer percentage | 2.50% |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Benefits (Textual) | ||
Maximum employee contribution of compensation received | 4.00% | |
Employer mmatching contribution, percent | 100.00% | |
Amount of Employer contributions charged to expense | $ 400 | $ 400 |
Cash surrender value of all life insurance policies | $ 13,725 | $ 13,437 |
Vesting period of company's contribution to each employee account | 3 years | |
Employee stock ownership plan (ESOP), number of allocated shares | 466,442 | 457,647 |
Employee stock ownership plan (ESOP), compensation expense | $ 300 | $ 200 |
Vesting period of matching contribution | 3 years | |
Description of supplemental executive retirement plan agreement with certain active and retired officers | Agreements provide monthly payments for up to 15 years that equal 15 percent to 25 percent of average compensation prior to retirement or death. | |
Expense charged under Supplemental Executive Retirement Plan agreements | $ 10 | $ 200 |
Share Based Compensation Plan81
Share Based Compensation Plan (Details) | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Summary of option activity under Company's Plan | |
Shares Outstanding, beginning of year | shares | 140,074 |
Shares Granted | shares | |
Shares Exercised | shares | (38,514) |
Shares Forfeited | shares | (1,750) |
Shares Expired | shares | |
Shares Outstanding, end of year | shares | 99,810 |
Shares Exercisable, end of year | shares | 99,810 |
Weighted - Average Exercise Price, Outstanding, beginning of year | $ / shares | $ 8.12 |
Weighted - Average Exercise Price, Granted | $ / shares | |
Weighted - Average Exerise Price, Exercised | $ / shares | 8.72 |
Weighted - Average Exercise Price, Forfeited | $ / shares | 9.56 |
Weighted - Average Exercise Price, Expired | $ / shares | |
Weighted - Average Exercise Price, Outstanding, end of year | $ / shares | 7.85 |
Weighted - Average Exercise Price, Exercisable, end of year | $ / shares | $ 7.85 |
Weighted - Average Remaining Contractual Term, Outstanding, end of year | 2 years 6 months 15 days |
Weighted - Average Remaining Contractual Term, Exercisable, end of year | 2 years 6 months 15 days |
Aggregate Intrinsic Value, Outstanding, end of year | $ | $ 818,741 |
Aggregate Intrinsic Value, Exercisable, end of year | $ | $ 818,741 |
Share Based Compensation Plan82
Share Based Compensation Plan (Details 1) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested, beginning of year | shares | 27,328 |
Nonvested Shares, Granted | shares | 17,280 |
Nonvested Shares, Vested | shares | (9,110) |
Nonvested Shares, Forfeited | shares | |
Nonvested Shares, end of year | shares | 35,498 |
Nonvested Weighted-Average Grant-Date Fair Value per share, Outstanding, beginning of year | $ / shares | $ 8.77 |
Nonvested Weighted-Average Grant-Date Fair Value per share, Granted | $ / shares | 10.03 |
Nonvested Weighted-Average Grant-Date Fair Value per share, Vested | $ / shares | 8.55 |
Nonvested Weighted-Average Grant-Date Fair Value per share, Forfeited | $ / shares | |
Nonvested Weighted-Average Grant-Date Fair Value per share, Outstanding, end of year | $ / shares | $ 9.44 |
Share Based Compensation Plan83
Share Based Compensation Plan (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Plan (Textual) | ||
Option awards vesting period | 3 years | |
Options granted | ||
Total intrinsic value | $ 330 | |
Option exercised shares | 38,514 | |
Cash received from exercised options | $ 240 | |
Restricted Stock [Member] | ||
Share Based Compensation Plan (Textual) | ||
Compensation cost charged against income | 130 | $ 80 |
Total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under plan | $ 310 | |
Option awards vesting period | 5 years | |
Total income tax benefit recognized in income statement for share-based compensation arrangements | $ 40 | 30 |
weighted-average period term | 2 years 18 days | |
2008 Stock Incentive Plan [Member] | ||
Share Based Compensation Plan (Textual) | ||
Compensation cost charged against income | ||
Total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under plan | ||
Option awards vesting period | 5 years | |
Option awards contractual terms | 10 years | |
Maximum common shares granted for incentive stock options, nonqualified stock options, stock appreciation rights ("SARs"), and restricted stock | 250,000 |
Preferred Stock (Details)
Preferred Stock (Details) - Series A Preferred Stock [Member] - USD ($) | Dec. 23, 2014 | Dec. 31, 2016 |
Preffered Stock (Textual) | ||
Liquidation preference per share | $ 1,000 | |
Share price | $ 10 | |
Description of preffered capital offering | The Company completed its public offering of 1,500,000 depository shares, each representing a 1/100th ownership interest in a 6.50 percent Noncumulative Convertible Preferred Share, Series A | |
Proceeds from issuance of Series A preferred stock | $ 13,983,000 | |
Conversion price | $ 10.328 | |
Preferred stock, Conversion basis | On or after the fifth anniversary of the issue date of the Series A Preferred Shares (December 23, 2019), the Company may require all holders of Series A Preferred Shares (and, therefore, depository shares) to convert their shares into common shares of the Company, provided the Company's common share price exceeds 120 percent of the conversion price noted above. | |
Conversion of outstanding Series A Preferred Shares | 1,456,442 | |
Percentage of noncumulative convertible preferred share | 6.50% | |
Depository shares issued, Value | $ 15,000,000 | |
Depository shares issued, Shares | 1,500,000 | |
Conversion of Stock, Shares Converted | 1,000 |
Disclosures About Fair Value 85
Disclosures About Fair Value of Assets and Liabilities (Details) - Available-For-Sale Securities [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
U.S. Treasury and Government agencies [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | $ 13,358 | $ 10,905 |
Mortgage-backed securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 61,603 | 61,343 |
State and political subdivisions [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 15,097 | 17,518 |
Equity securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 70 | 23 |
Interest rate contracts - assets [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 623 | 490 |
Interest rate contracts - liabilities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | (623) | (490) |
Level 1 [Member] | U.S. Treasury and Government agencies [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | Mortgage-backed securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | State and political subdivisions [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | Equity securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | Interest rate contracts - assets [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 1 [Member] | Interest rate contracts - liabilities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 2 [Member] | U.S. Treasury and Government agencies [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 13,358 | 10,905 |
Level 2 [Member] | Mortgage-backed securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 61,603 | 61,343 |
Level 2 [Member] | State and political subdivisions [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 15,097 | 17,518 |
Level 2 [Member] | Equity securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 70 | 23 |
Level 2 [Member] | Interest rate contracts - assets [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | 623 | 490 |
Level 2 [Member] | Interest rate contracts - liabilities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | (623) | (490) |
Level 3 [Member] | U.S. Treasury and Government agencies [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | Mortgage-backed securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | State and political subdivisions [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | Equity securities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | Interest rate contracts - assets [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring | ||
Level 3 [Member] | Interest rate contracts - liabilities [Member] | ||
Fair value measurements of securities measured at fair value on a recurring basis | ||
Assets, Fair value, Recurring |
Disclosures About Fair Value 86
Disclosures About Fair Value of Assets and Liabilities (Details 1) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Impaired loans [Member] | Level 1 [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Impaired loans [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | 786 | 3,011 |
Impaired loans [Member] | Level 2 [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Impaired loans [Member] | Level 3 [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | 786 | 3,011 |
Mortgage Servicing Rights [Member] | Level 1 [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | ||
Mortgage Servicing Rights [Member] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | 1,993 | 2,585 |
Mortgage Servicing Rights [Member] | Level 2 [Member] | ||
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] | ||
Fair value measurements of assets measured at fair value on a non-recurring basis | ||
Assets, Fair value, Nonrecurring | $ 1,993 | $ 2,585 |
Disclosures About Fair Value 87
Disclosures About Fair Value of Assets and Liabilities (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Collateral-dependent impaired loans [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 | $ 786 | $ 3,011 |
Fair Value Measurements, Valuation Techniques | Market comparable properties | Market comparable properties |
Collateral-dependent impaired loans [Member] | Comparability Adjustments Percent [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements Unobservable Input Description | Comparability adjustments (%) | Comparability adjustments (%) |
Fair Value Input Interest Rate | ||
Mortgage servicing rights [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 | $ 1,993 | $ 2,585 |
Fair Value Measurements, Valuation Techniques | Discounted cash flow | Discounted cash flow |
Mortgage servicing rights [Member] | Discount Rate [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements Unobservable Input Description | Discount Rate | Discount Rate |
Fair Value Input Interest Rate | 9.65% | 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 Input Description | Constant prepayment rate | Constant prepayment rate |
Fair Value Input Interest Rate | 7.61% | 8.90% |
Mortgage servicing rights [Member] | T and I Earnings Credit [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements Unobservable Input Description | T&I earnings credit | T&I earnings credit |
Fair Value Input Interest Rate | 1.60% | 1.54% |
Mortgage servicing rights [Member] | P and I Earnings Credit [Member] | ||
Quantitative information about unobservable inputs used in recurring and nonrecurring fair value measurements | ||
Fair Value Measurements Unobservable Input Description | P&I earnings credit | P&I earnings credit |
Fair Value Input Interest Rate | 0.76% | 0.42% |
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 Input Description | Inflation for cost of servicing | Inflation for cost of servicing |
Fair Value Input Interest Rate | 1.50% | 1.50% |
Disclosures About Fair Value 88
Disclosures About Fair Value of Assets and Liabilities (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets | |||
Cash and due from banks | $ 17,012 | $ 20,459 | |
Loam held for sale | 4,434 | 7,516 | |
Loans, net of allowance for loan losses | 636,708 | 550,669 | |
Federal Reserve and FHLB Bank stock, at cost | 3,748 | 3,748 | |
Interest receivable | 1,512 | 1,260 | |
Mortgage Servicing Rights | 8,422 | 7,152 | $ 5,704 |
Financial liabilities | |||
Deposits | 673,073 | 586,453 | |
Repurchase agreements | 10,532 | 12,406 | |
FHLB advances | 26,500 | 35,000 | |
Trust preferred securities | 10,310 | 10,310 | |
Interest payable | 408 | 264 | |
Level 1 [Member] | |||
Financial assets | |||
Cash and due from banks | 17,012 | 20,459 | |
Loam held for sale | |||
Loans, net of allowance for loan losses | |||
Federal Reserve and FHLB Bank stock, at cost | |||
Interest receivable | |||
Mortgage Servicing Rights | |||
Financial liabilities | |||
Deposits | 125,189 | 113,113 | |
Repurchase agreements | |||
FHLB advances | |||
Trust preferred securities | |||
Interest payable | |||
Level 2 [Member] | |||
Financial assets | |||
Cash and due from banks | |||
Loam held for sale | 4,503 | 7,779 | |
Loans, net of allowance for loan losses | |||
Federal Reserve and FHLB Bank stock, at cost | 3,748 | 3,748 | |
Interest receivable | 1,512 | 1,260 | |
Mortgage Servicing Rights | |||
Financial liabilities | |||
Deposits | 550,990 | 475,468 | |
Repurchase agreements | 10,532 | 12,406 | |
FHLB advances | 26,477 | 34,870 | |
Trust preferred securities | 7,422 | 7,165 | |
Interest payable | 408 | 264 | |
Level 3 [Member] | |||
Financial assets | |||
Cash and due from banks | |||
Loam held for sale | |||
Loans, net of allowance for loan losses | 636,909 | 548,154 | |
Federal Reserve and FHLB Bank stock, at cost | |||
Interest receivable | |||
Mortgage Servicing Rights | 9,656 | 7,760 | |
Financial liabilities | |||
Deposits | |||
Repurchase agreements | |||
FHLB advances | |||
Trust preferred securities | |||
Interest payable |
Disclosures About Fair Value 89
Disclosures About Fair Value of Assets and Liabilities (Details Textual) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosures About Fair Value Of Assets And Liabilities (Textual) | |
Interest rate on mortgage service description | The mortgage servicing rights have increased substantially in value. The servicing rights have had a decline in prepayments and the .10 percent decrease in the discount rate reflects the change in market rates. |
Condensed Financial Informati90
Condensed Financial Information (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | |||
Cash and cash equivalents | $ 17,012 | $ 20,459 | $ 28,197 |
Other assets | 3,771 | 3,310 | |
Total assets | 816,005 | 733,071 | |
Liabilities | |||
Total liabilities | 729,457 | 651,830 | |
Stockholders' Equity | 86,548 | 81,241 | 75,683 |
Total liabilities and stockholders' equity | 816,005 | 733,071 | |
Parent [Member] | |||
Assets | |||
Cash and cash equivalents | 4,681 | 9,157 | 12,446 |
Investment in banking subsidiaries | 91,308 | 82,245 | |
Investment in nonbanking subsidiaries | 1,417 | 1,488 | |
Other assets | 673 | 274 | |
Total assets | 98,079 | 93,164 | |
Liabilities | |||
Trust preferred securities | 10,000 | 10,000 | |
Borrowings from nonbanking subsidiaries | 310 | 310 | |
Other liabilities & accrued interest payable | 1,221 | 1,613 | |
Total liabilities | 11,531 | 11,923 | |
Stockholders' Equity | 86,548 | 81,241 | $ 75,683 |
Total liabilities and stockholders' equity | $ 98,079 | $ 93,164 |
Condensed Financial Informati91
Condensed Financial Information (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Expenses | ||
Interest expense | $ 3,198 | $ 2,584 |
Income tax benefit | 4,117 | 3,404 |
Equity in undistributed income of subsidiaries | ||
Net income | 8,784 | 7,619 |
Preferred stock dividends | 975 | 956 |
Net income available to common shareholders | 7,809 | 6,663 |
Comprehensive income | 8,185 | 7,351 |
Parent [Member] | ||
Dividends from subsidiaries: | ||
Banking subsidiaries | 1,000 | |
Total income | 1,000 | |
Expenses | ||
Interest expense | 253 | 212 |
Other expense | 969 | 922 |
Total expenses | 1,222 | 1,134 |
Income before income tax | (1,222) | (134) |
Income tax benefit | (416) | (385) |
Income before equity in undistributed income of subsidiaries | (806) | 251 |
Equity in undistributed income of subsidiaries | ||
Banking subsidiaries | 9,662 | 7,369 |
Nonbanking subsidiaries | (72) | (1) |
Total | 9,590 | 7,368 |
Net income | 8,784 | 7,619 |
Preferred stock dividends | 975 | 956 |
Net income available to common shareholders | 7,809 | 6,663 |
Comprehensive income | $ 8,185 | $ 7,351 |
Condensed Financial Informati92
Condensed Financial Information (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | ||
Net income | $ 8,784 | $ 7,619 |
Items not requiring (providing) cash | ||
Other assets | 856 | 1,656 |
Net cash used in operating activities | 14,026 | 8,615 |
Financing Activities | ||
Dividends on common stock | (1,180) | (983) |
Dividends on preferred stock | (975) | (956) |
Proceeds from stock compensation | 240 | |
Net cash used in financing activities | 73,254 | 38,339 |
Net Change in Cash and Cash Equivalents | (3,447) | (7,738) |
Cash and Cash Equivalents, Beginning of Year | 20,459 | 28,197 |
Cash and Cash Equivalents, End of Year | 17,012 | 20,459 |
Parent [Member] | ||
Operating Activities | ||
Net income | 8,784 | 7,619 |
Items not requiring (providing) cash | ||
Equity in undistributed net income of subsidiaries | (9,590) | (7,368) |
Expense of stock option plan | 114 | 81 |
Other assets | (401) | (166) |
Other liabilities | (391) | (1,581) |
Net cash used in operating activities | (1,484) | (1,415) |
Financing Activities | ||
Dividends on common stock | (1,180) | (983) |
Dividends on preferred stock | (975) | (956) |
Proceeds from stock compensation | 331 | 67 |
Repurchase of common stock | (1,168) | (2) |
Net cash used in financing activities | (2,992) | (1,874) |
Net Change in Cash and Cash Equivalents | (4,476) | (3,289) |
Cash and Cash Equivalents, Beginning of Year | 9,157 | 12,446 |
Cash and Cash Equivalents, End of Year | $ 4,681 | $ 9,157 |