Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | CHOICEONE FINANCIAL SERVICES INC | |
Entity Central Index Key | 803,164 | |
Document Type | 10-Q | |
Trading Symbol | COFS | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 3,301,005 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 12,572 | $ 11,187 |
Securities available for sale (Note 2) | 171,238 | 160,136 |
Federal Home Loan Bank stock | 1,614 | 1,614 |
Federal Reserve Bank stock | 1,573 | 1,573 |
Loans held for sale | 1,508 | 4,957 |
Loans (Note 3) | 351,344 | 349,304 |
Allowance for loan losses (Note 3) | (4,125) | (4,194) |
Loans, net | 347,219 | 345,110 |
Premises and equipment, net | 12,009 | 11,847 |
Other real estate owned, net | 31 | |
Cash value of life insurance policies | 12,348 | 12,261 |
Intangible assets, net | 241 | 379 |
Goodwill | 13,728 | 13,728 |
Other assets | 4,808 | 4,923 |
Total assets | 578,858 | 567,746 |
Liabilities | ||
Deposits - noninterest-bearing | 121,513 | 122,937 |
Deposits - interest-bearing | 358,338 | 351,759 |
Total deposits | 479,851 | 474,696 |
Repurchase agreements | 8,355 | 9,460 |
Federal funds purchased | 4,100 | |
Advances from Federal Home Loan Bank | 12,325 | 11,332 |
Other liabilities | 2,801 | 2,416 |
Total liabilities | 507,432 | 497,904 |
Shareholders' Equity | ||
Common stock and paid-in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,297,516 at March 31, 2016 and 3,295,228 at December 31, 2015 | 46,709 | 46,501 |
Retained earnings | 22,851 | 22,138 |
Accumulated other comprehensive income, net | 1,866 | 1,203 |
Total shareholders' equity | 71,426 | 69,842 |
Total liabilities and shareholders' equity | $ 578,858 | $ 567,746 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, shares par value | $ 0 | $ 0 |
Common stock, shares authorized | 7,000,000 | 7,000,000 |
Common stock, shares outstanding | 3,297,516 | 3,295,228 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest income | ||
Loans, including fees | $ 3,996 | $ 3,942 |
Securities: | ||
Taxable | 553 | 452 |
Tax exempt | 366 | 349 |
Other | 6 | 3 |
Total interest income | 4,921 | 4,746 |
Interest expense | ||
Deposits | 209 | 225 |
Advances from Federal Home Loan Bank | 30 | 19 |
Other | 2 | 12 |
Total interest expense | 241 | 256 |
Net interest income | 4,680 | 4,490 |
Provision for loan losses | 100 | |
Net interest income after provision for loan losses | 4,680 | 4,390 |
Noninterest income | ||
Customer service charges | 960 | 983 |
Insurance and investment commissions | 223 | 341 |
Gains on sales of loans | 419 | 503 |
Net gains on sales of securities | 70 | 8 |
Losses on sales and write-downs of other assets | (23) | (21) |
Earnings on life insurance policies | 88 | 388 |
Other | 106 | 92 |
Total noninterest income | 1,843 | 2,294 |
Noninterest expense | ||
Salaries and benefits | 2,411 | 2,299 |
Occupancy and equipment | 641 | 596 |
Data processing | 559 | 553 |
Professional fees | 236 | 277 |
Supplies and postage | 125 | 105 |
Advertising and promotional | 43 | 67 |
Intangible amortization | 112 | 112 |
Loan and collection expense | 22 | 44 |
FDIC insurance | 67 | 78 |
Other | 582 | 429 |
Total noninterest expense | 4,797 | 4,560 |
Income before income tax | 1,726 | 2,124 |
Income tax expense | 452 | 482 |
Net income | $ 1,274 | $ 1,642 |
Basic earnings per share (Note 4) (in dollars per share) | $ 0.39 | $ 0.50 |
Diluted earnings per share (Note 4) (in dollars per share) | 0.39 | 0.50 |
Dividends declared per share (in dollars per share) | $ 0.17 | $ 0.15 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of activity in secondar market loans | ||
Net income | $ 1,274 | $ 1,642 |
Other comprehensive income: | ||
Unrealized holding gains on available for sale securities | 1,074 | 1,141 |
Less Reclassification adjustment for gain recognized in net income | (70) | (8) |
Net realized gain | 1,004 | 1,133 |
Less tax effect | (341) | (385) |
Other comprehensive income, net of tax | 663 | 748 |
Comprehensive income | $ 1,937 | $ 2,390 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock and Paid In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income/(Loss), Net [Member] | Total |
Balance, beginning at Dec. 31, 2014 | $ 46,552 | $ 18,565 | $ 1,073 | $ 66,190 |
Balance, beginning (in shares) at Dec. 31, 2014 | 3,295,831 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 1,642 | 1,642 | ||
Other comprehensive loss | 748 | 748 | ||
Shares issued | $ 35 | 35 | ||
Shares issued (shares) | 2,315 | |||
Change in ESOP repurchase obligation | $ (4) | (4) | ||
Shares repurchased | $ (343) | (343) | ||
Shares repurchased (in shares) | (15,000) | |||
Effect of employee stock purchases | $ 3 | 3 | ||
Stock-based compensation | 12 | 12 | ||
Cash dividends declared | (492) | (492) | ||
Balance, ending at Mar. 31, 2015 | $ 46,255 | 19,715 | 1,821 | 67,791 |
Balance, ending (in shares) at Mar. 31, 2015 | 3,283,146 | |||
Balance, beginning at Dec. 31, 2015 | $ 46,501 | 22,138 | 1,203 | $ 69,842 |
Balance, beginning (in shares) at Dec. 31, 2015 | 3,295,228 | 3,295,228 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 1,274 | $ 1,274 | ||
Other comprehensive loss | 663 | 663 | ||
Shares issued | $ 34 | 34 | ||
Shares issued (shares) | 2,288 | |||
Change in ESOP repurchase obligation | $ 127 | 127 | ||
Effect of employee stock purchases | 8 | 8 | ||
Stock-based compensation | 39 | 39 | ||
Cash dividends declared | (561) | (561) | ||
Balance, ending at Mar. 31, 2016 | $ 46,709 | $ 22,851 | $ 1,866 | $ 71,426 |
Balance, ending (in shares) at Mar. 31, 2016 | 3,297,516 | 3,297,516 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividend declared, per share | $ 0.17 | $ 0.15 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 1,274 | $ 1,642 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for loan losses | 100 | |
Depreciation | 258 | 244 |
Amortization | 393 | 385 |
Compensation expense on stock purchases and restricted stock units | 47 | 15 |
Gains on sales of securities | (70) | (8) |
Gains on sales of loans | (419) | (503) |
Loans originated for sale | (9,128) | (6,772) |
Proceeds from loan sales | 12,934 | 7,364 |
Earnings on bank-owned life insurance | (88) | (387) |
Proceeds on bank-owned life insurance | 461 | |
(Gains)/losses on sales of other real estate owned | 4 | (2) |
Write-downs of other real estate owned | 23 | |
Proceeds from sales of other real estate owned | 28 | 58 |
Deferred federal income tax (benefit)/expense | 47 | (175) |
Net changes in other assets | (109) | (408) |
Net changes in other liabilities | 121 | 298 |
Net cash from operating activities | 5,292 | 2,335 |
Securities available for sale: | ||
Sales | 2,217 | 1,123 |
Maturities, prepayments and calls | 5,602 | 1,157 |
Purchases | (18,060) | (9,441) |
Loan originations and payments, net | (2,109) | 7,690 |
Additions to premises and equipment | (173) | (147) |
Net cash from investing activities | (12,523) | 382 |
Cash flows from financing activities: | ||
Net change in deposits | 5,155 | (5,746) |
Net change in repurchase agreements | (1,105) | (5,590) |
Net change in federal funds purchased | 4,100 | |
Proceeds from Federal Home Loan Bank advances | 92,000 | 38,550 |
Payments on Federal Home Loan Bank advances | (91,007) | (36,033) |
Issuance of common stock | 34 | 35 |
Repurchase of common stock | (343) | |
Cash dividends | (561) | (492) |
Net cash from financing activities | 8,616 | (9,619) |
Net change in cash and cash equivalents | 1,385 | (6,902) |
Beginning cash and cash equivalents | 11,187 | 16,650 |
Ending cash and cash equivalents | 12,572 | 9,748 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | $ 240 | 257 |
Cash paid for taxes | $ 320 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”) and its wholly-owned subsidiary, ChoiceOne Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. Intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, prevailing practices within the banking industry and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015, the Consolidated Statements of Income for the three-month periods ended March 31, 2016 and March 31, 2015, the Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2016 and March 31, 2015, the Consolidated Statements of Changes in Shareholders' Equity for the three-month periods ended March 31, 2016 and March 31, 2015, and the Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2016 and March 31, 2015. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2015. Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the consolidated loan portfolio. Management’s evaluation of the adequacy of the allowance is an estimate based on reviews of individual loans, assessments of the impact of current economic conditions on the portfolio and historical loss experience of seasoned loan portfolios. See Note 3 to the interim consolidated financial statements for additional information. Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because (1) the estimate is highly susceptible to change from period to period because of assumptions concerning the changes in the types and volumes of the portfolios and economic conditions and (2) the impact of recognizing an impairment or loan loss could have a material effect on ChoiceOne’s assets reported on the balance sheets as well as its net income. Stock Transactions A total of 784 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $19,000 under the terms of the Directors’ Stock Purchase Plan in the first quarter of 2016. A total of 669 shares were issued upon the exercise of stock options in the first quarter of 2016. A total of 64 shares were issued upon vesting of Restricted Stock Units in the first quarter of 2016. Stock-Based Compensation Effective July 1, 2013, ChoiceOne began granting Restricted Stock Units to a select group of employees under the Stock Incentive Plan of 2012. All of the Restricted Stock Units are initially unvested and vest in three annual installments on each of the next three anniversaries of the grant date. Certain additional vesting provisions apply. Each unit, once vested, is settled by delivery of one share of ChoiceOne common stock. Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. |
SECURITIES
SECURITIES | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE 2 - SECURITIES The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: March 31, 2016 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 61,684 $ 262 $ (34 ) $ 61,912 U.S. Treasury 6,126 63 6,189 State and municipal 82,757 2,244 (55 ) 84,946 Mortgage-backed 6,598 42 (9 ) 6,631 Corporate 7,907 45 (4 ) 7,948 Foreign debt 1,000 (1 ) 999 Equity securities 2,280 87 2,367 Asset-backed securities 250 (4 ) 246 Total $ 168,602 $ 2,743 $ (107 ) $ 171,238 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 57,406 $ 30 $ (229 ) $ 57,207 U.S. Treasury 6,133 (33 ) 6,100 State and municipal 76,005 1,858 (109 ) 77,754 Mortgage-backed 6,989 26 (45 ) 6,970 Corporate 8,418 8 (39 ) 8,387 Foreign debt 1,000 (5 ) 995 Equity securities 2,279 174 2,453 Asset-backed securities 274 (4 ) 270 Total $ 158,504 $ 2,096 $ (464 ) $ 160,136 ChoiceOne reviews its securities portfolio on a quarterly basis to determine whether unrealized losses are considered to be temporary or other-than-temporary. No other-than-temporary impairment charges were recorded in the first quarter of 2016. ChoiceOne believed that unrealized losses on securities were temporary in nature and were due to changes in interest rates and reduced market liquidity and not as a result of credit quality issues. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | NOTE 3 – LOANS AND ALLOWANCE FOR LOAN LOSSES Activity in the allowance for loan losses and balances in the loan portfolio were as follows: (Dollars in thousands) Agricultural Commercial Consumer Commercial Real Estate Construction Real Estate Residential Real Estate Unallocated Total Allowance for Loan Losses Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs (33 ) (39 ) (69 ) (141 ) Recoveries 15 42 8 7 72 Provision (38 ) 123 (28 ) 100 (3 ) 24 (178 ) Ending balance $ 382 $ 691 $ 272 $ 1,138 $ 43 $ 1,350 $ 249 $ 4,125 Individually evaluated for impairment $ 2 $ 9 $ 2 $ 219 $ $ 343 $ $ 575 Collectively evaluated for impairment $ 380 $ 682 $ 270 $ 919 $ 43 $ 1,007 $ 249 $ 3,550 December 31, 2015 Individually evaluated for impairment $ 3 $ 15 $ 1 $ 191 $ $ 296 $ $ 506 Collectively evaluated for $ 417 $ 571 $ 296 $ 839 $ 46 $ 1,092 $ 427 $ 3,688 Three Months Ended Beginning balance $ 186 $ 527 $ 184 $ 1,641 $ 9 $ 1,193 $ 433 $ 4,173 Charge-offs (51 ) (1 ) (52 ) Recoveries 28 36 6 30 100 Provision 13 58 25 (149 ) 30 261 (138 ) 100 Ending balance $ 199 $ 613 $ 194 $ 1,498 $ 39 $ 1,483 $ 295 $ 4,321 Individually evaluated for impairment $ 1 $ $ 2 $ 414 $ $ 384 $ $ 801 Collectively evaluated for impairment $ 198 $ 613 $ 192 $ 1,084 $ 39 $ 1,099 $ 295 $ 3,520 Loans March 31, 2016 Individually evaluated for impairment $ 175 $ 310 $ 23 $ 3,083 $ $ 2,660 $ 6,251 Collectively evaluated for impairment 35,910 98,308 20,309 95,919 4,981 89,666 345,093 Ending balance $ 36,085 $ 98,618 $ 20,332 $ 99,002 $ 4,981 $ 92,326 $ 351,344 The process to monitor the credit quality of ChoiceOne’s loan portfolio includes tracking (1) the risk ratings of business loans, (2) the level of classified business loans, and (3) delinquent and nonperforming consumer loans. Business loans are risk rated on a scale of 1 to 8. A description of the characteristics of the ratings follows: Risk ratings 1 and 2: These loans are considered pass credits. They exhibit good to exceptional credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 3: These loans are considered pass credits. They exhibit acceptable credit risk and demonstrate the ability to repay the loan from normal business operations. Risk rating 4: These loans are considered pass credits. However, they have potential developing weaknesses that, if not corrected, may cause deterioration in the ability of the borrower to repay the loan. While a loss is possible for a loan with this rating, it is not anticipated. Risk rating 5: These loans are considered special mention credits. Loans in this risk rating are considered to be inadequately protected by the net worth and debt service coverage of the borrower or of any pledged collateral. These loans have well defined weaknesses that may jeopardize the borrower’s ability to repay the loan. If the weaknesses are not corrected, loss of principal and interest could be probable. Risk rating 6: These loans are considered substandard credits. These loans have well defined weaknesses, the severity of which makes collection of principal and interest in full questionable. Loans in this category may be placed on nonaccrual status. Risk rating 7: These loans are considered doubtful credits. Some loss of principal and interest has been determined to be probable. The estimate of the amount of loss could be affected by factors such as the borrower’s ability to provide additional capital or collateral. Loans in this category are on nonaccrual status. Risk rating 8: These loans are considered loss credits. They are considered uncollectible and will be charged off against the allowance for loan losses. Information regarding the Bank’s credit exposure is as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category Agricultural Commercial and Industrial Commercial Real Estate (Dollars in thousands) March 31, December 31, March 31, December 31, March 31, December 31, 2016 2015 2016 2015 2016 2015 Risk ratings 1 and 2 $ 7,021 $ 10,416 $ 10,941 $ 10,480 $ 5,918 $ 3,875 Risk rating 3 21,739 25,189 68,582 66,921 54,846 57,540 Risk rating 4 5,717 3,086 18,092 16,169 31,940 29,826 Risk rating 5 1,560 1,491 886 574 3,778 3,776 Risk rating 6 48 50 117 129 2,521 2,719 Risk rating 7 74 $ 36,085 $ 40,232 $ 98,618 $ 94,347 $ 99,002 $ 97,736 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate March 31, December 31, March 31, December 31, March 31, December 31, 2016 2015 2016 2015 2016 2015 Performing $ 20,332 $ 20,090 $ 4,981 $ 5,390 $ 91,842 $ 90,796 Nonperforming 282 Nonaccrual 484 431 $ 20,332 $ 20,090 $ 4,981 $ 5,390 $ 92,326 $ 91,509 The following schedule provides information on loans that were considered TDRs that were modified during the three months ended March 31, 2016 and March 31, 2015: March 31, 2016 March 31, 2015 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Number Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded of Recorded Recorded Loans Investment Investment Loans Investment Investment Commercial real estate 1 $ 128 $ 128 3 $ 669 $ 669 Residential real estate 1 30 30 1 111 111 2 $ 158 $ 158 4 $ 780 $ 780 The pre-modification and post-modification outstanding recorded investment represents amounts as of the date of loan modification. If a difference exists between the pre-modification and post-modification outstanding recorded investment, it represents impairment recognized through the provision for loan losses computed based on a loan’s post-modification present value of expected future cash flows discounted at the loan’s original effective interest rate. If no difference exists, a loss is not expected to be incurred based on an assessment of the borrower’s expected cash flows. The following schedule provides information on TDRs as of March 31, 2016 and 2015 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three-month periods ended March 31, 2016 and March 31, 2015 that had been modified during the year prior to the default: Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Agricultural 1 $ 128 $ Commercial real estate 0 3 615 1 $ 128 3 $ 615 Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance March 31, 2016 With no related allowance recorded Agricultural $ 127 $ 127 $ Commercial and industrial Consumer Commercial real estate 1,261 1,304 Residential real estate 85 135 Subtotal 1,473 1,566 With an allowance recorded Agricultural 48 49 2 Commercial and industrial 310 310 9 Consumer 23 23 2 Commercial real estate 1,822 2,360 219 Residential real estate 2,575 2,587 343 Subtotal 4,778 5,329 575 Total Agricultural 175 176 2 Commercial and industrial 310 310 9 Consumer 23 23 2 Commercial real estate 3,083 3,664 219 Residential real estate 2,660 2,722 343 Total $ 6,251 $ 6,895 $ 575 December 31, 2015 With no related allowance recorded Agricultural $ $ $ Commercial and industrial 74 103 Consumer Commercial real estate 1,540 1,540 Residential real estate 13 13 Subtotal 1,627 1,656 With an allowance recorded Agricultural 50 50 3 Commercial and industrial 118 118 15 Consumer 24 24 1 Commercial real estate 1,250 1,755 191 Residential real estate 2,516 2,516 296 Subtotal 3,958 4,463 506 Total Agricultural 50 50 3 Commercial and industrial 192 221 15 Consumer 24 24 1 Commercial real estate 2,790 3,295 191 Residential real estate 2,529 2,529 296 Total $ 5,585 $ 6,119 $ 506 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the three months ended March 31, 2016 and 2015: Average Interest (Dollars in thousands) Recorded Income Investment Recognized March 31, 2016 With no related allowance recorded Agricultural $ 64 $ 2 Commercial and industrial 37 Consumer Commercial real estate 1,400 4 Residential real estate 49 1 Subtotal 1,550 7 With an allowance recorded Agricultural 49 Commercial and industrial 214 (3 ) Consumer 23 Commercial real estate 1,536 10 Residential real estate 2,545 24 Subtotal 4,367 31 Total Agricultural 113 2 Commercial and industrial 251 (3 ) Consumer 23 Commercial real estate 2,936 14 Residential real estate 2,594 25 Total $ 5,917 $ 39 March 31, 2015 With no related allowance recorded Agricultural $ $ Commercial and industrial 21 Consumer 4 Commercial real estate 631 1 Residential real estate 362 Subtotal 1,018 1 With an allowance recorded Agricultural 105 (6 ) Commercial and industrial Consumer 27 1 Commercial real estate 2,826 24 Residential real estate 2,460 22 Subtotal 5,418 41 Total Agricultural 105 (6 ) Commercial and industrial 21 Consumer 31 1 Commercial real estate 3,457 25 Residential real estate 2,822 22 Total $ 6,436 $ 42 An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Due and Days Days Days (1) Total Past Due Total Loans Accruing March 31, 2016 Agricultural $ $ $ $ $ 36,085 $ 36,085 $ Commercial and industrial 107 193 300 98,318 98,618 Consumer 36 36 20,296 20,332 Commercial real estate 201 551 752 98,250 99,002 Construction real estate 59 75 134 4,847 4,981 Residential real estate 601 173 50 824 91,502 92,326 $ 1,005 $ 442 $ 601 $ 2,047 $ 349,298 $ 351,344 $ December 31, 2015 Agricultural $ 3 $ $ $ 3 $ 40,229 $ 40,232 $ Commercial and industrial 90 322 77 489 93,858 94,347 Consumer 115 115 19,975 20,090 Commercial real estate 505 297 1,233 2,035 95,701 97,736 Construction real estate 299 299 5,091 5,390 Residential real estate 1,012 364 200 1,576 89,933 91,509 29 $ 2,024 $ 983 $ 1,510 $ 4,517 $ 344,787 $ 349,304 $ 29 (1) Includes nonaccrual loans. Nonaccrual loans by loan category follow: (Dollars in thousands) March 31, December 31, 2016 2015 Agricultural $ 48 $ 50 Commercial and industrial 300 77 Consumer Commercial real estate 1,894 1,640 Construction real estate Residential real estate 484 431 $ 2,726 $ 2,198 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 4 - EARNINGS PER SHARE Earnings per share are based on the weighted average number of shares outstanding during the period. A computation of basic earnings per share and diluted earnings per share follows: Three Months Ended (Dollars in thousands, except per share data) March 31, 2016 2015 Basic Earnings Per Share Net income available to common shareholders $ 1,274 $ 1,642 Weighted average common shares outstanding 3,296,238 3,297,022 Basic earnings per share $ 0.39 $ 0.50 Diluted Earnings Per Share Net income available to common shareholders $ 1,274 $ 1,642 Weighted average common shares outstanding 3,296,238 3,297,022 Plus dilutive stock options and restricted stock units 8,265 11,913 Weighted average common shares outstanding and potentially dilutive shares 3,304,503 3,308,935 Diluted earnings per share $ 0.39 $ 0.50 There were 30,000 stock options as of March 31, 2016 and 0 stock options as of March 31, 2015 that are considered to be anti-dilutive to earnings per share for the three-month periods ended March 31, 2016 and March 31, 2015. These stock options have been excluded from the calculation above. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 5 – FINANCIAL INSTRUMENTS Financial instruments as of the dates indicated were as follows: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) March 31, 2016 Assets: Cash and due from banks $ 12,572 $ 12,572 $ 12,572 $ $ Securities available for sale 171,238 171,238 867 158,559 11,812 Federal Home Loan Bank and Federal Reserve Bank stock 3,187 3,187 3,187 Loans held for sale 1,508 1,562 1,562 Loans, net 347,219 351,430 351,430 Liabilities: Noninterest-bearing deposits 121,513 121,513 121,513 Interest-bearing deposits 358,338 332,069 332,069 Repurchase agreements 8,355 8,355 8,355 Federal Home Loan Bank advances 12,325 12,364 12,364 December 31, 2015 Assets: Cash and due from banks $ 11,187 $ 11,187 $ 11,187 $ $ Securities available for sale 160,136 160,136 953 147,384 11,799 Federal Home Loan Bank and Federal Reserve Bank stock 3,187 3,187 3,187 Loans held for sale 4,957 5,109 5,109 Loans, net 345,110 349,875 349,875 Liabilities: Noninterest-bearing deposits 122,937 122,937 122,937 Interest-bearing deposits 351,759 353,113 353,113 Repurchase agreements 9,460 9,460 9,460 Federal Home Loan Bank advances 11,332 12,028 12,028 The estimated fair values approximate the carrying amounts for all assets and liabilities except those described later in this paragraph. The methodology for determining the estimated fair value for securities available for sale is described in Note 6. The estimated fair value for loans is based on the rates charged at March 31, 2016 and December 31, 2015 for new loans with similar maturities, applied until the loan is assumed to reprice or be paid. The allowance for loan losses is considered to be a reasonable estimate of discount for credit quality concerns. The estimated fair values for time deposits and Federal Home Loan Bank (“FHLB”) advances are based on the rates paid at March 31, 2016 and December 31, 2015 for new deposits or FHLB advances, applied until maturity. The estimated fair values for other financial instruments and off-balance sheet loan commitments are considered nominal. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 6 – FAIR VALUE MEASUREMENTS The following tables present information about the Bank’s assets and liabilities measured at fair value on a recurring basis and the valuation techniques used by the Bank to determine those fair values. In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Bank has the ability to access. Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Bank’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. There were no liabilities measured at fair value as of March 31, 2016 or December 31, 2015. Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) Quoted Prices Significant Significant Balance at Investment Securities, Available for Sale March 31, 2016 U.S. Treasury notes and bonds $ $ 6,189 $ $ 6,189 U.S. Government and federal agency 61,912 61,912 State and municipal 75,032 9,914 84,946 Mortgage-backed 6,631 6,631 Corporate 7,550 398 7,948 Foreign debt 999 999 Equity securities 867 1,500 2,367 Asset backed securities 246 246 Total $ 867 $ 158,559 $ 11,812 $ 171,238 Investment Securities, Available for Sale - December 31, 2015 U.S. Treasury notes and bonds $ $ 6,100 $ $ 6,100 U.S. Government and federal agency 57,207 57,207 State and municipal 67,852 9,902 77,754 Mortgage-backed 6,970 6,970 Corporate 7,990 397 8,387 Foreign debt 995 995 Equity securities 953 1,500 2,453 Asset backed securities 270 270 Total $ 953 $ 147,384 $ 11,799 $ 160,136 Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2016 2015 Investment Securities, Available for Sale Balance, January 1 $ 11,799 $ 11,641 Total realized and unrealized gains included in income Total unrealized gains (losses) included in other comprehensive income 31 60 Net purchases, sales, calls, and maturities (18 ) 977 Net transfers into Level 3 Balance, March 31 $ 11,812 $ 12,678 Of the Level 3 assets that were held by the Bank at March 31, 2016, the net unrealized gain for the three months ended March 31, 2016 was $30,000, which is recognized in other comprehensive income in the consolidated balance sheet. There were no purchases or sales of Level 3 securities in the first quarter of 2016. Both observable and unobservable inputs may be used to determine the fair value of positions classified as Level 3 investment securities and liabilities. As a result, the unrealized gains and losses for these assets and liabilities presented in the tables above may include changes in fair value that were attributable to both observable and unobservable inputs. Available for sale investment securities categorized as Level 3 assets primarily consist of bonds issued by local municipalities. The Bank estimates the fair value of these bonds based on the present value of expected future cash flows using management’s best estimate of key assumptions, including forecasted interest yield and payment rates, credit quality and a discount rate commensurate with the current market and other risks involved. The Bank also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets are not normally measured at fair value, but can be subject to fair value adjustments in certain circumstances, such as impairment. Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices in Active Significant Markets for Other Significant (Dollars in thousands) Balance at Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans March 31, 2016 $ 6,251 $ $ $ 6,251 December 31, 2015 $ 5,585 $ $ $ 5,585 Other Real Estate March 31, 2016 $ $ $ $ December 31, 2015 $ 31 $ $ $ 31 Impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired. The Bank estimates the fair value of the loans based on the present value of expected future cash flows using management’s estimate of key assumptions. These assumptions include future payment ability, timing of payment streams, and estimated realizable values of available collateral (typically based on outside appraisals). The changes in fair value consisted of charge-downs of impaired loans that were posted to the allowance for loan losses and write-downs of other real estate that were posted to a valuation account. |
SUMMARY OF SIGNIFICANT ACCOUN15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include ChoiceOne Financial Services, Inc. (“ChoiceOne”) and its wholly-owned subsidiary, ChoiceOne Bank (the “Bank”), and the Bank’s wholly-owned subsidiary, ChoiceOne Insurance Agencies, Inc. Intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information, prevailing practices within the banking industry and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The accompanying consolidated financial statements reflect all adjustments ordinary in nature which are, in the opinion of management, necessary for a fair presentation of the Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015, the Consolidated Statements of Income for the three-month periods ended March 31, 2016 and March 31, 2015, the Consolidated Statements of Comprehensive Income for the three-month periods ended March 31, 2016 and March 31, 2015, the Consolidated Statements of Changes in Shareholders' Equity for the three-month periods ended March 31, 2016 and March 31, 2015, and the Consolidated Statements of Cash Flows for the three-month periods ended March 31, 2016 and March 31, 2015. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in ChoiceOne’s Annual Report on Form 10-K for the year ended December 31, 2015. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is maintained at a level believed adequate by management to absorb probable incurred losses inherent in the consolidated loan portfolio. Management’s evaluation of the adequacy of the allowance is an estimate based on reviews of individual loans, assessments of the impact of current economic conditions on the portfolio and historical loss experience of seasoned loan portfolios. See Note 3 to the interim consolidated financial statements for additional information. Management believes the accounting estimate related to the allowance for loan losses is a “critical accounting estimate” because (1) the estimate is highly susceptible to change from period to period because of assumptions concerning the changes in the types and volumes of the portfolios and economic conditions and (2) the impact of recognizing an impairment or loan loss could have a material effect on ChoiceOne’s assets reported on the balance sheets as well as its net income. |
Stock Transactions | Stock Transactions A total of 784 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $19,000 under the terms of the Directors’ Stock Purchase Plan in the first quarter of 2016. A total of 669 shares were issued upon the exercise of stock options in the first quarter of 2016. A total of 64 shares were issued upon vesting of Restricted Stock Units in the first quarter of 2016. |
Stock-Based Compensation | Stock-Based Compensation Effective July 1, 2013, ChoiceOne began granting Restricted Stock Units to a select group of employees under the Stock Incentive Plan of 2012. All of the Restricted Stock Units are initially unvested and vest in three annual installments on each of the next three anniversaries of the grant date. Certain additional vesting provisions apply. Each unit, once vested, is settled by delivery of one share of ChoiceOne common stock. |
Reclassifications | Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. |
SECURITIES (Tables)
SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of fair value of securities available for sale | The fair value of securities available for sale and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows: March 31, 2016 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 61,684 $ 262 $ (34 ) $ 61,912 U.S. Treasury 6,126 63 6,189 State and municipal 82,757 2,244 (55 ) 84,946 Mortgage-backed 6,598 42 (9 ) 6,631 Corporate 7,907 45 (4 ) 7,948 Foreign debt 1,000 (1 ) 999 Equity securities 2,280 87 2,367 Asset-backed securities 250 (4 ) 246 Total $ 168,602 $ 2,743 $ (107 ) $ 171,238 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 57,406 $ 30 $ (229 ) $ 57,207 U.S. Treasury 6,133 (33 ) 6,100 State and municipal 76,005 1,858 (109 ) 77,754 Mortgage-backed 6,989 26 (45 ) 6,970 Corporate 8,418 8 (39 ) 8,387 Foreign debt 1,000 (5 ) 995 Equity securities 2,279 174 2,453 Asset-backed securities 274 (4 ) 270 Total $ 158,504 $ 2,096 $ (464 ) $ 160,136 |
LOANS AND ALLOWANCE FOR LOAN 17
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Schedule of activity in the allowance for loan losses and balances in the loan portfolio | Activity in the allowance for loan losses and balances in the loan portfolio were as follows: (Dollars in thousands) Agricultural Commercial Consumer Commercial Real Estate Construction Real Estate Residential Real Estate Unallocated Total Allowance for Loan Losses Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs (33 ) (39 ) (69 ) (141 ) Recoveries 15 42 8 7 72 Provision (38 ) 123 (28 ) 100 (3 ) 24 (178 ) Ending balance $ 382 $ 691 $ 272 $ 1,138 $ 43 $ 1,350 $ 249 $ 4,125 Individually evaluated for impairment $ 2 $ 9 $ 2 $ 219 $ $ 343 $ $ 575 Collectively evaluated for impairment $ 380 $ 682 $ 270 $ 919 $ 43 $ 1,007 $ 249 $ 3,550 December 31, 2015 Individually evaluated for impairment $ 3 $ 15 $ 1 $ 191 $ $ 296 $ $ 506 Collectively evaluated for $ 417 $ 571 $ 296 $ 839 $ 46 $ 1,092 $ 427 $ 3,688 Three Months Ended Beginning balance $ 186 $ 527 $ 184 $ 1,641 $ 9 $ 1,193 $ 433 $ 4,173 Charge-offs (51 ) (1 ) (52 ) Recoveries 28 36 6 30 100 Provision 13 58 25 (149 ) 30 261 (138 ) 100 Ending balance $ 199 $ 613 $ 194 $ 1,498 $ 39 $ 1,483 $ 295 $ 4,321 Individually evaluated for impairment $ 1 $ $ 2 $ 414 $ $ 384 $ $ 801 Collectively evaluated for impairment $ 198 $ 613 $ 192 $ 1,084 $ 39 $ 1,099 $ 295 $ 3,520 Loans March 31, 2016 Individually evaluated for impairment $ 175 $ 310 $ 23 $ 3,083 $ $ 2,660 $ 6,251 Collectively evaluated for impairment 35,910 98,308 20,309 95,919 4,981 89,666 345,093 Ending balance $ 36,085 $ 98,618 $ 20,332 $ 99,002 $ 4,981 $ 92,326 $ 351,344 |
Schedule of the bank's credit exposure | Information regarding the Bank’s credit exposure is as follows: Corporate Credit Exposure - Credit Risk Profile By Creditworthiness Category Agricultural Commercial and Industrial Commercial Real Estate (Dollars in thousands) March 31, December 31, March 31, December 31, March 31, December 31, 2016 2015 2016 2015 2016 2015 Risk ratings 1 and 2 $ 7,021 $ 10,416 $ 10,941 $ 10,480 $ 5,918 $ 3,875 Risk rating 3 21,739 25,189 68,582 66,921 54,846 57,540 Risk rating 4 5,717 3,086 18,092 16,169 31,940 29,826 Risk rating 5 1,560 1,491 886 574 3,778 3,776 Risk rating 6 48 50 117 129 2,521 2,719 Risk rating 7 74 $ 36,085 $ 40,232 $ 98,618 $ 94,347 $ 99,002 $ 97,736 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate March 31, December 31, March 31, December 31, March 31, December 31, 2016 2015 2016 2015 2016 2015 Performing $ 20,332 $ 20,090 $ 4,981 $ 5,390 $ 91,842 $ 90,796 Nonperforming 282 Nonaccrual 484 431 $ 20,332 $ 20,090 $ 4,981 $ 5,390 $ 92,326 $ 91,509 |
Schedule of troubled debt restructurings | The following schedule provides information on loans that were considered TDRs that were modified during the three months ended March 31, 2016 and March 31, 2015: March 31, 2016 March 31, 2015 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Number Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded of Recorded Recorded Loans Investment Investment Loans Investment Investment Commercial real estate 1 $ 128 $ 128 3 $ 669 $ 669 Residential real estate 1 30 30 1 111 111 2 $ 158 $ 158 4 $ 780 $ 780 The following schedule provides information on TDRs as of March 31, 2016 and 2015 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three-month periods ended March 31, 2016 and March 31, 2015 that had been modified during the year prior to the default: Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Agricultural 1 $ 128 $ Commercial real estate 0 3 615 1 $ 128 3 $ 615 |
Schedule of impaired loans | Impaired loans by loan category follow: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance March 31, 2016 With no related allowance recorded Agricultural $ 127 $ 127 $ Commercial and industrial Consumer Commercial real estate 1,261 1,304 Residential real estate 85 135 Subtotal 1,473 1,566 With an allowance recorded Agricultural 48 49 2 Commercial and industrial 310 310 9 Consumer 23 23 2 Commercial real estate 1,822 2,360 219 Residential real estate 2,575 2,587 343 Subtotal 4,778 5,329 575 Total Agricultural 175 176 2 Commercial and industrial 310 310 9 Consumer 23 23 2 Commercial real estate 3,083 3,664 219 Residential real estate 2,660 2,722 343 Total $ 6,251 $ 6,895 $ 575 December 31, 2015 With no related allowance recorded Agricultural $ $ $ Commercial and industrial 74 103 Consumer Commercial real estate 1,540 1,540 Residential real estate 13 13 Subtotal 1,627 1,656 With an allowance recorded Agricultural 50 50 3 Commercial and industrial 118 118 15 Consumer 24 24 1 Commercial real estate 1,250 1,755 191 Residential real estate 2,516 2,516 296 Subtotal 3,958 4,463 506 Total Agricultural 50 50 3 Commercial and industrial 192 221 15 Consumer 24 24 1 Commercial real estate 2,790 3,295 191 Residential real estate 2,529 2,529 296 Total $ 5,585 $ 6,119 $ 506 The following schedule provides information regarding average balances of impaired loans and interest recognized on impaired loans for the three months ended March 31, 2016 and 2015: Average Interest (Dollars in thousands) Recorded Income Investment Recognized March 31, 2016 With no related allowance recorded Agricultural $ 64 $ 2 Commercial and industrial 37 Consumer Commercial real estate 1,400 4 Residential real estate 49 1 Subtotal 1,550 7 With an allowance recorded Agricultural 49 Commercial and industrial 214 (3 ) Consumer 23 Commercial real estate 1,536 10 Residential real estate 2,545 24 Subtotal 4,367 31 Total Agricultural 113 2 Commercial and industrial 251 (3 ) Consumer 23 Commercial real estate 2,936 14 Residential real estate 2,594 25 Total $ 5,917 $ 39 March 31, 2015 With no related allowance recorded Agricultural $ $ Commercial and industrial 21 Consumer 4 Commercial real estate 631 1 Residential real estate 362 Subtotal 1,018 1 With an allowance recorded Agricultural 105 (6 ) Commercial and industrial Consumer 27 1 Commercial real estate 2,826 24 Residential real estate 2,460 22 Subtotal 5,418 41 Total Agricultural 105 (6 ) Commercial and industrial 21 Consumer 31 1 Commercial real estate 3,457 25 Residential real estate 2,822 22 Total $ 6,436 $ 42 |
Schedule of aging analysis of loans by loan category | An aging analysis of loans by loan category follows: Greater 90 Days Past (Dollars in thousands) 30 to 59 60 to 89 Than 90 Loans Not Due and Days Days Days (1) Total Past Due Total Loans Accruing March 31, 2016 Agricultural $ $ $ $ $ 36,085 $ 36,085 $ Commercial and industrial 107 193 300 98,318 98,618 Consumer 36 36 20,296 20,332 Commercial real estate 201 551 752 98,250 99,002 Construction real estate 59 75 134 4,847 4,981 Residential real estate 601 173 50 824 91,502 92,326 $ 1,005 $ 442 $ 601 $ 2,047 $ 349,298 $ 351,344 $ December 31, 2015 Agricultural $ 3 $ $ $ 3 $ 40,229 $ 40,232 $ Commercial and industrial 90 322 77 489 93,858 94,347 Consumer 115 115 19,975 20,090 Commercial real estate 505 297 1,233 2,035 95,701 97,736 Construction real estate 299 299 5,091 5,390 Residential real estate 1,012 364 200 1,576 89,933 91,509 29 $ 2,024 $ 983 $ 1,510 $ 4,517 $ 344,787 $ 349,304 $ 29 (1) Includes nonaccrual loans. |
Schedule of nonaccrual loans by loan category | Nonaccrual loans by loan category follow: (Dollars in thousands) March 31, December 31, 2016 2015 Agricultural $ 48 $ 50 Commercial and industrial 300 77 Consumer Commercial real estate 1,894 1,640 Construction real estate Residential real estate 484 431 $ 2,726 $ 2,198 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of basic earnings per share and diluted earnings per share | A computation of basic earnings per share and diluted earnings per share follows: Three Months Ended (Dollars in thousands, except per share data) March 31, 2016 2015 Basic Earnings Per Share Net income available to common shareholders $ 1,274 $ 1,642 Weighted average common shares outstanding 3,296,238 3,297,022 Basic earnings per share $ 0.39 $ 0.50 Diluted Earnings Per Share Net income available to common shareholders $ 1,274 $ 1,642 Weighted average common shares outstanding 3,296,238 3,297,022 Plus dilutive stock options and restricted stock units 8,265 11,913 Weighted average common shares outstanding and potentially dilutive shares 3,304,503 3,308,935 Diluted earnings per share $ 0.39 $ 0.50 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying value and fair value of financial assets and liabilities | Financial instruments as of the dates indicated were as follows: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable (Dollars in thousands) Carrying Estimated Assets Inputs Inputs Amount Fair Value (Level 1) (Level 2) (Level 3) March 31, 2016 Assets: Cash and due from banks $ 12,572 $ 12,572 $ 12,572 $ $ Securities available for sale 171,238 171,238 867 158,559 11,812 Federal Home Loan Bank and Federal Reserve Bank stock 3,187 3,187 3,187 Loans held for sale 1,508 1,562 1,562 Loans, net 347,219 351,430 351,430 Liabilities: Noninterest-bearing deposits 121,513 121,513 121,513 Interest-bearing deposits 358,338 332,069 332,069 Repurchase agreements 8,355 8,355 8,355 Federal Home Loan Bank advances 12,325 12,364 12,364 December 31, 2015 Assets: Cash and due from banks $ 11,187 $ 11,187 $ 11,187 $ $ Securities available for sale 160,136 160,136 953 147,384 11,799 Federal Home Loan Bank and Federal Reserve Bank stock 3,187 3,187 3,187 Loans held for sale 4,957 5,109 5,109 Loans, net 345,110 349,875 349,875 Liabilities: Noninterest-bearing deposits 122,937 122,937 122,937 Interest-bearing deposits 351,759 353,113 353,113 Repurchase agreements 9,460 9,460 9,460 Federal Home Loan Bank advances 11,332 12,028 12,028 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) Quoted Prices Significant Significant Balance at Investment Securities, Available for Sale March 31, 2016 U.S. Treasury notes and bonds $ $ 6,189 $ $ 6,189 U.S. Government and federal agency 61,912 61,912 State and municipal 75,032 9,914 84,946 Mortgage-backed 6,631 6,631 Corporate 7,550 398 7,948 Foreign debt 999 999 Equity securities 867 1,500 2,367 Asset backed securities 246 246 Total $ 867 $ 158,559 $ 11,812 $ 171,238 Investment Securities, Available for Sale - December 31, 2015 U.S. Treasury notes and bonds $ $ 6,100 $ $ 6,100 U.S. Government and federal agency 57,207 57,207 State and municipal 67,852 9,902 77,754 Mortgage-backed 6,970 6,970 Corporate 7,990 397 8,387 Foreign debt 995 995 Equity securities 953 1,500 2,453 Asset backed securities 270 270 Total $ 953 $ 147,384 $ 11,799 $ 160,136 Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2016 2015 Investment Securities, Available for Sale Balance, January 1 $ 11,799 $ 11,641 Total realized and unrealized gains included in income Total unrealized gains (losses) included in other comprehensive income 31 60 Net purchases, sales, calls, and maturities (18 ) 977 Net transfers into Level 3 Balance, March 31 $ 11,812 $ 12,678 |
Schedule of changes in Level 3 assets measured at fair value on a recurring basis | Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2016 2015 Investment Securities, Available for Sale Balance, January 1 $ 11,799 $ 11,641 Total realized and unrealized gains included in income Total unrealized gains (losses) included in other comprehensive income 31 60 Net purchases, sales, calls, and maturities (18 ) 977 Net transfers into Level 3 Balance, March 31 $ 11,812 $ 12,678 |
Schedule of assets measured at fair value on a nonrecurring basis | Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: Assets Measured at Fair Value on a Non-recurring Basis Quoted Prices in Active Significant Markets for Other Significant (Dollars in thousands) Balance at Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans March 31, 2016 $ 6,251 $ $ $ 6,251 December 31, 2015 $ 5,585 $ $ $ 5,585 Other Real Estate March 31, 2016 $ $ $ $ December 31, 2015 $ 31 $ $ $ 31 |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)shares | |
Stock Options [Member] | |
Number of Options exercised | 669 |
Restricted stock [Member] | |
Shares issued during the period upon vesting | 64 |
Vesting period | 3 years |
Directors' Stock Purchase Plan [Member] | |
Shares issued during the period, shares | 784 |
Shares issued during the period, value | $ | $ 19 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 168,602 | $ 158,504 |
Gross Unrealized Gains | 2,743 | 2,096 |
Gross Unrealized Losses | (107) | (464) |
Fair Value | 171,238 | 160,136 |
U.S. Government and federal agency [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 61,684 | 57,406 |
Gross Unrealized Gains | 262 | 30 |
Gross Unrealized Losses | (34) | (229) |
Fair Value | 61,912 | 57,207 |
U.S. Treasury notes and bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,126 | 6,133 |
Gross Unrealized Gains | 63 | |
Gross Unrealized Losses | (33) | |
Fair Value | 6,189 | 6,100 |
State and municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 82,757 | 76,005 |
Gross Unrealized Gains | 2,244 | 1,858 |
Gross Unrealized Losses | (55) | (109) |
Fair Value | 84,946 | 77,754 |
Mortgage-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,598 | 6,989 |
Gross Unrealized Gains | 42 | 26 |
Gross Unrealized Losses | (9) | (45) |
Fair Value | 6,631 | 6,970 |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,907 | 8,418 |
Gross Unrealized Gains | 45 | 8 |
Gross Unrealized Losses | (4) | (39) |
Fair Value | 7,948 | 8,387 |
Foreign Debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,000 | 1,000 |
Gross Unrealized Losses | (1) | (5) |
Fair Value | 999 | 995 |
Equity securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,280 | 2,279 |
Gross Unrealized Gains | 87 | 174 |
Fair Value | 2,367 | 2,453 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 250 | 274 |
Gross Unrealized Losses | (4) | (4) |
Fair Value | $ 246 | $ 270 |
LOANS AND ALLOWANCE FOR LOAN 23
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for Loan Losses | ||
Beginning balance | $ 4,194 | $ 4,173 |
Charge-offs | (141) | (52) |
Recoveries | 72 | 100 |
Provision | 100 | |
Ending balance | 4,125 | 4,321 |
Individually evaluated for impairment, beginning | 506 | |
Collectively evaluated for impairment, beginning | 3,688 | |
Individually evaluated for impairment, ending | 575 | 801 |
Collectively evaluated for impairment, ending | 3,550 | 3,520 |
Loans | ||
Individually evaluated for impairment | 6,251 | |
Collectively evaluated for impairment | 345,093 | |
Loans | 351,344 | |
Agricultural [Member] | ||
Allowance for Loan Losses | ||
Beginning balance | 420 | 186 |
Provision | (38) | 13 |
Ending balance | 382 | 199 |
Individually evaluated for impairment, beginning | 3 | |
Collectively evaluated for impairment, beginning | 417 | |
Individually evaluated for impairment, ending | 2 | 1 |
Collectively evaluated for impairment, ending | 380 | 198 |
Loans | ||
Individually evaluated for impairment | 175 | |
Collectively evaluated for impairment | 35,910 | |
Loans | 36,085 | |
Commercial and Industrial [Member] | ||
Allowance for Loan Losses | ||
Beginning balance | 586 | 527 |
Charge-offs | (33) | |
Recoveries | 15 | 28 |
Provision | 123 | 58 |
Ending balance | 691 | 613 |
Individually evaluated for impairment, beginning | 15 | |
Collectively evaluated for impairment, beginning | 571 | |
Individually evaluated for impairment, ending | 9 | |
Collectively evaluated for impairment, ending | 682 | 613 |
Loans | ||
Individually evaluated for impairment | 310 | |
Collectively evaluated for impairment | 98,308 | |
Loans | 98,618 | |
Consumer [Member] | ||
Allowance for Loan Losses | ||
Beginning balance | 297 | 184 |
Charge-offs | (39) | (51) |
Recoveries | 42 | 36 |
Provision | (28) | 25 |
Ending balance | 272 | 194 |
Individually evaluated for impairment, beginning | 1 | |
Collectively evaluated for impairment, beginning | 296 | |
Individually evaluated for impairment, ending | 2 | 2 |
Collectively evaluated for impairment, ending | 270 | 192 |
Loans | ||
Individually evaluated for impairment | 23 | |
Collectively evaluated for impairment | 20,309 | |
Loans | 20,332 | |
Commercial Real Estate [Member] | ||
Allowance for Loan Losses | ||
Beginning balance | 1,030 | 1,641 |
Recoveries | 8 | 6 |
Provision | 100 | (149) |
Ending balance | 1,138 | 1,498 |
Individually evaluated for impairment, beginning | 191 | |
Collectively evaluated for impairment, beginning | 839 | |
Individually evaluated for impairment, ending | 219 | 414 |
Collectively evaluated for impairment, ending | 919 | 1,084 |
Loans | ||
Individually evaluated for impairment | 3,083 | |
Collectively evaluated for impairment | 95,919 | |
Loans | 99,002 | |
Construction Real Estate [Member] | ||
Allowance for Loan Losses | ||
Beginning balance | 46 | 9 |
Provision | (3) | 30 |
Ending balance | 43 | 39 |
Collectively evaluated for impairment, beginning | 46 | |
Collectively evaluated for impairment, ending | 43 | 39 |
Loans | ||
Collectively evaluated for impairment | 4,981 | |
Loans | 4,981 | |
Residential Real Estate [Member] | ||
Allowance for Loan Losses | ||
Beginning balance | 1,388 | 1,193 |
Charge-offs | (69) | (1) |
Recoveries | 7 | 30 |
Provision | 24 | 261 |
Ending balance | 1,350 | 1,483 |
Individually evaluated for impairment, beginning | 296 | |
Collectively evaluated for impairment, beginning | 1,092 | |
Individually evaluated for impairment, ending | 343 | 384 |
Collectively evaluated for impairment, ending | 1,007 | 1,099 |
Loans | ||
Individually evaluated for impairment | 2,660 | |
Collectively evaluated for impairment | 89,666 | |
Loans | 92,326 | |
Unallocated [Member] | ||
Allowance for Loan Losses | ||
Beginning balance | 427 | 433 |
Provision | (178) | (138) |
Ending balance | 249 | 295 |
Collectively evaluated for impairment, beginning | 427 | |
Collectively evaluated for impairment, ending | $ 249 | $ 295 |
LOANS AND ALLOWANCE FOR LOAN 24
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 351,344 | $ 349,304 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 36,085 | 40,232 |
Agricultural [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 7,021 | 10,416 |
Agricultural [Member] | Risk ratings 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 21,739 | 25,189 |
Agricultural [Member] | Risk ratings 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 5,717 | 3,086 |
Agricultural [Member] | Risk ratings 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 1,560 | 1,491 |
Agricultural [Member] | Risk ratings 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 48 | 50 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 98,618 | 94,347 |
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 10,941 | 10,480 |
Commercial and Industrial [Member] | Risk ratings 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 68,582 | 66,921 |
Commercial and Industrial [Member] | Risk ratings 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 18,092 | 16,169 |
Commercial and Industrial [Member] | Risk ratings 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 886 | 574 |
Commercial and Industrial [Member] | Risk ratings 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 117 | 129 |
Commercial and Industrial [Member] | Risk ratings 7 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 74 | |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 99,002 | 97,736 |
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 5,918 | 3,875 |
Commercial Real Estate [Member] | Risk ratings 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 54,846 | 57,540 |
Commercial Real Estate [Member] | Risk ratings 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 31,940 | 29,826 |
Commercial Real Estate [Member] | Risk ratings 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 3,778 | 3,776 |
Commercial Real Estate [Member] | Risk ratings 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 2,521 | $ 2,719 |
LOANS AND ALLOWANCE FOR LOAN 25
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 351,344 | $ 349,304 |
Nonaccrual past due loans | 2,726 | 2,198 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 20,332 | 20,090 |
Consumer [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 20,332 | 20,090 |
Construction Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 4,981 | 5,390 |
Construction Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 4,981 | 5,390 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 92,326 | 91,509 |
Nonaccrual past due loans | 484 | 431 |
Residential Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 91,842 | 90,796 |
Residential Real Estate [Member] | Nonperforming [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 282 |
LOANS AND ALLOWANCE FOR LOAN 26
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)N | Mar. 31, 2015USD ($)N | |
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | N | 2 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 158 | $ 780 |
Post Modification Oustanding Recorded Investment | $ 158 | $ 780 |
Number of Contracts | N | 1 | 3 |
Post Modification Outstanding Recorded Investment - past due for 30 days or more | $ 128 | $ 615 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | N | 1 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 128 | $ 669 |
Post Modification Oustanding Recorded Investment | $ 128 | $ 669 |
Number of Contracts | N | 3 | |
Post Modification Outstanding Recorded Investment - past due for 30 days or more | $ 615 | |
Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | N | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 30 | $ 111 |
Post Modification Oustanding Recorded Investment | $ 30 | $ 111 |
Agricultural [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | N | 1 | |
Post Modification Outstanding Recorded Investment - past due for 30 days or more | $ 128 |
LOANS AND ALLOWANCE FOR LOAN 27
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Impaired and Restructured Loans with or with no related allowance recorded | ||
Recorded Investment With no related allowance recorded, beginning | $ 1,627 | |
Unpaid Principal Balance With no related allowance recorded, beginning | 1,656 | |
Recorded Investment With no related allowance recorded, ending | 1,473 | |
Unpaid Principal Balance With no related allowance recorded, ending | 1,566 | |
Average Recorded Investment With no related allowance recorded | 1,550 | $ 1,018 |
Interest Income Recognized With no related allowance recorded | 7 | 1 |
Recorded Investment With an allowance recorded, beginning | 3,958 | |
Unpaid Principal Balance With an allowance recorded, beginning | 4,463 | |
Related Allowance, beginning | 506 | |
Recorded Investment With an allowance recorded, ending | 4,778 | |
Unpaid Principal Balance With an allowance recorded, ending | 5,329 | |
Related Allowance, ending | 575 | |
Average Recorded Investment With an allowance recorded | 4,367 | 5,418 |
Interest Income Recognized With an allowance recorded | 31 | 41 |
Recorded Investment, beginning | 5,585 | |
Unpaid Principal Balance, beginning | 6,119 | |
Recorded Investment, ending | 6,251 | |
Unpaid Principal Balance, ending | 6,895 | |
Average Recorded Investment | 5,917 | 6,436 |
Interest Income Recognized | 39 | 42 |
Agricultural [Member] | ||
Impaired and Restructured Loans with or with no related allowance recorded | ||
Recorded Investment With no related allowance recorded, ending | 127 | |
Unpaid Principal Balance With no related allowance recorded, ending | 127 | |
Average Recorded Investment With no related allowance recorded | 64 | |
Interest Income Recognized With no related allowance recorded | 2 | |
Recorded Investment With an allowance recorded, beginning | 50 | |
Unpaid Principal Balance With an allowance recorded, beginning | 50 | |
Related Allowance, beginning | 3 | |
Recorded Investment With an allowance recorded, ending | 48 | |
Unpaid Principal Balance With an allowance recorded, ending | 49 | |
Related Allowance, ending | 2 | |
Average Recorded Investment With an allowance recorded | 49 | 105 |
Interest Income Recognized With an allowance recorded | (6) | |
Recorded Investment, beginning | 50 | |
Unpaid Principal Balance, beginning | 50 | |
Recorded Investment, ending | 175 | |
Unpaid Principal Balance, ending | 176 | |
Average Recorded Investment | 113 | 105 |
Interest Income Recognized | 2 | (6) |
Commercial and Industrial [Member] | ||
Impaired and Restructured Loans with or with no related allowance recorded | ||
Recorded Investment With no related allowance recorded, beginning | 74 | |
Unpaid Principal Balance With no related allowance recorded, beginning | 103 | |
Average Recorded Investment With no related allowance recorded | 37 | 21 |
Recorded Investment With an allowance recorded, beginning | 118 | |
Unpaid Principal Balance With an allowance recorded, beginning | 118 | |
Related Allowance, beginning | 15 | |
Recorded Investment With an allowance recorded, ending | 310 | |
Unpaid Principal Balance With an allowance recorded, ending | 310 | |
Related Allowance, ending | 9 | |
Average Recorded Investment With an allowance recorded | 214 | |
Interest Income Recognized With an allowance recorded | (3) | |
Recorded Investment, beginning | 192 | |
Unpaid Principal Balance, beginning | 221 | |
Recorded Investment, ending | 310 | |
Unpaid Principal Balance, ending | 310 | |
Average Recorded Investment | 251 | 21 |
Interest Income Recognized | (3) | |
Consumer [Member] | ||
Impaired and Restructured Loans with or with no related allowance recorded | ||
Average Recorded Investment With no related allowance recorded | 4 | |
Recorded Investment With an allowance recorded, beginning | 24 | |
Unpaid Principal Balance With an allowance recorded, beginning | 24 | |
Related Allowance, beginning | 1 | |
Recorded Investment With an allowance recorded, ending | 23 | |
Unpaid Principal Balance With an allowance recorded, ending | 23 | |
Related Allowance, ending | 2 | |
Average Recorded Investment With an allowance recorded | 23 | 27 |
Interest Income Recognized With an allowance recorded | 1 | |
Recorded Investment, beginning | 24 | |
Unpaid Principal Balance, beginning | 24 | |
Recorded Investment, ending | 23 | |
Unpaid Principal Balance, ending | 23 | |
Average Recorded Investment | 23 | 31 |
Interest Income Recognized | 1 | |
Commercial Real Estate [Member] | ||
Impaired and Restructured Loans with or with no related allowance recorded | ||
Recorded Investment With no related allowance recorded, beginning | 1,540 | |
Unpaid Principal Balance With no related allowance recorded, beginning | 1,540 | |
Recorded Investment With no related allowance recorded, ending | 1,261 | |
Unpaid Principal Balance With no related allowance recorded, ending | 1,304 | |
Average Recorded Investment With no related allowance recorded | 1,400 | 631 |
Interest Income Recognized With no related allowance recorded | 4 | 1 |
Recorded Investment With an allowance recorded, beginning | 1,250 | |
Unpaid Principal Balance With an allowance recorded, beginning | 1,755 | |
Related Allowance, beginning | 191 | |
Recorded Investment With an allowance recorded, ending | 1,822 | |
Unpaid Principal Balance With an allowance recorded, ending | 2,360 | |
Related Allowance, ending | 219 | |
Average Recorded Investment With an allowance recorded | 1,536 | 2,826 |
Interest Income Recognized With an allowance recorded | 10 | 24 |
Recorded Investment, beginning | 2,790 | |
Unpaid Principal Balance, beginning | 3,395 | |
Recorded Investment, ending | 3,083 | |
Unpaid Principal Balance, ending | 3,664 | |
Average Recorded Investment | 2,936 | 3,457 |
Interest Income Recognized | 14 | 25 |
Residential Real Estate [Member] | ||
Impaired and Restructured Loans with or with no related allowance recorded | ||
Recorded Investment With no related allowance recorded, beginning | 13 | |
Unpaid Principal Balance With no related allowance recorded, beginning | 13 | |
Recorded Investment With no related allowance recorded, ending | 85 | |
Unpaid Principal Balance With no related allowance recorded, ending | 135 | |
Average Recorded Investment With no related allowance recorded | 49 | 362 |
Interest Income Recognized With no related allowance recorded | 1 | |
Recorded Investment With an allowance recorded, beginning | 2,516 | |
Unpaid Principal Balance With an allowance recorded, beginning | 2,516 | |
Related Allowance, beginning | 296 | |
Recorded Investment With an allowance recorded, ending | 2,575 | |
Unpaid Principal Balance With an allowance recorded, ending | 2,587 | |
Related Allowance, ending | 343 | |
Average Recorded Investment With an allowance recorded | 2,545 | 2,460 |
Interest Income Recognized With an allowance recorded | 24 | 22 |
Recorded Investment, beginning | 2,529 | |
Unpaid Principal Balance, beginning | 2,529 | |
Recorded Investment, ending | 2,660 | |
Unpaid Principal Balance, ending | 2,722 | |
Average Recorded Investment | 2,594 | 2,822 |
Interest Income Recognized | $ 25 | $ 22 |
LOANS AND ALLOWANCE FOR LOAN 28
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | $ 2,047 | $ 4,517 | |
Loans Not Past Due | 349,298 | 344,787 | |
Loans | 351,344 | 349,304 | |
90 Days Past Due and Accruing | 29 | ||
30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 1,005 | 2,024 | |
60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 442 | 983 | |
Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 601 | 1,510 |
Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 3 | ||
Loans Not Past Due | 36,085 | 40,229 | |
Loans | 36,085 | 40,232 | |
Agricultural [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 3 | ||
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 300 | 489 | |
Loans Not Past Due | 98,318 | 93,858 | |
Loans | 98,618 | 94,347 | |
Commercial and Industrial [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 107 | 90 | |
Commercial and Industrial [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 193 | 322 | |
Commercial and Industrial [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 77 | |
Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 36 | 115 | |
Loans Not Past Due | 20,296 | 19,975 | |
Loans | 20,332 | 20,090 | |
Consumer [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 36 | 115 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 752 | 2,035 | |
Loans Not Past Due | 98,250 | 95,701 | |
Loans | 99,002 | 97,736 | |
Commercial Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 201 | 505 | |
Commercial Real Estate [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 297 | ||
Commercial Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 551 | 1,233 |
Construction Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 134 | 299 | |
Loans Not Past Due | 4,847 | 5,091 | |
Loans | 4,981 | 5,390 | |
Construction Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 59 | 299 | |
Construction Real Estate [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 75 | ||
Residential Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 824 | 1,576 | |
Loans Not Past Due | 91,502 | 89,933 | |
Loans | 92,326 | 91,509 | |
90 Days Past Due and Accruing | 29 | ||
Residential Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 601 | 1,012 | |
Residential Real Estate [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 173 | 364 | |
Residential Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | $ 50 | $ 200 |
[1] | Includes nonaccrual loans |
LOANS AND ALLOWANCE FOR LOAN 29
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 2,726 | $ 2,198 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 48 | 50 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 300 | 77 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 1,894 | 1,640 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 484 | $ 431 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Stock options considered to be anti-dilutive to earnings per share | 30,000 | 0 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Basic Earnings Per Share | ||
Net income | $ 1,274 | $ 1,642 |
Weighted average common shares outstanding | 3,296,238 | 3,297,022 |
Basic earnings per share | $ 0.39 | $ 0.50 |
Diluted Earnings Per Share | ||
Plus dilutive stock options and restricted stock units | 8,265 | 11,913 |
Weighted average common shares outstanding and potentially dilutive shares | 3,304,503 | 3,308,935 |
Diluted earnings per share | $ 0.39 | $ 0.50 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Securities available for sale | $ 171,238 | $ 160,136 |
Liabilities: | ||
Noninterest-bearing deposits | 121,513 | 122,937 |
Interest-bearing deposits | 358,338 | 351,759 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Cash and due from banks | 12,572 | 11,187 |
Securities available for sale | 867 | 953 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Securities available for sale | 158,559 | 147,384 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,187 | 3,187 |
Loans held for sale | 5,109 | |
Liabilities: | ||
Noninterest-bearing deposits | 121,513 | 122,937 |
Interest-bearing deposits | 332,069 | 353,113 |
Repurchase agreements | 8,355 | 9,460 |
Federal Home Loan Bank advances | 12,364 | 12,028 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Securities available for sale | 11,812 | 11,799 |
Loans held for sale | 1,562 | |
Loans, net | 351,430 | 349,875 |
Carrying Amount [Member] | ||
Assets: | ||
Cash and due from banks | 12,572 | 11,187 |
Securities available for sale | 171,238 | 160,136 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,187 | 3,187 |
Loans held for sale | 1,508 | 4,957 |
Loans, net | 347,219 | 345,110 |
Liabilities: | ||
Noninterest-bearing deposits | 121,513 | 122,937 |
Interest-bearing deposits | 358,338 | 351,759 |
Repurchase agreements | 8,355 | 9,460 |
Federal Home Loan Bank advances | 12,325 | 11,332 |
Estimated Fair Value [Member] | ||
Assets: | ||
Cash and due from banks | 12,572 | 11,187 |
Securities available for sale | 171,238 | 160,136 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,187 | 3,187 |
Loans held for sale | 1,562 | 5,109 |
Loans, net | 351,430 | 349,875 |
Liabilities: | ||
Noninterest-bearing deposits | 121,513 | 122,937 |
Interest-bearing deposits | 332,069 | 353,113 |
Repurchase agreements | 8,355 | 9,460 |
Federal Home Loan Bank advances | $ 12,364 | $ 12,028 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Narrative) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Fair Value Disclosures [Abstract] | |
Total unrealized gains (losses) included in other comprehensive income | $ 30 |
FAIR VALUE MEASUREMENTS (Deta34
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 171,238 | $ 160,136 |
Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,367 | 2,453 |
U.S. Treasury notes and bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,189 | 6,100 |
U.S. Government and federal agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 61,912 | 57,207 |
State and municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 84,946 | 77,754 |
Mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,631 | 6,970 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,948 | 8,387 |
Foreign Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 999 | 995 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 246 | 270 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 867 | 953 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 158,559 | 147,384 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 11,812 | 11,799 |
Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 171,238 | 160,136 |
Fair Value Measured on a Recurring Basis [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,367 | 2,453 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Treasury notes and bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,189 | 6,100 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Government and federal agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 61,912 | 57,207 |
Fair Value Measured on a Recurring Basis [Member] | State and municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 84,946 | 77,754 |
Fair Value Measured on a Recurring Basis [Member] | Mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,631 | 6,970 |
Fair Value Measured on a Recurring Basis [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,948 | 8,387 |
Fair Value Measured on a Recurring Basis [Member] | Foreign Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 999 | 995 |
Fair Value Measured on a Recurring Basis [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 246 | 270 |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 867 | 953 |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 867 | 953 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 158,559 | 147,384 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury notes and bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,189 | 6,100 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and federal agency [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 61,912 | 57,207 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 75,032 | 67,852 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 6,631 | 6,970 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,550 | 7,990 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Foreign Debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 999 | 995 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 246 | 270 |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 11,812 | 11,799 |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,500 | 1,500 |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | State and municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 9,914 | 9,902 |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 398 | $ 397 |
FAIR VALUE MEASUREMENTS (Deta35
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis | ||
Total unrealized gains (losses) included in other comprehensive income | $ 30 | |
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Changes in Level 3 Investment Securities, Available for Sale Measured at Fair Value on a Recurring Basis | ||
Balance at the beginning of period | 11,799 | $ 11,641 |
Total unrealized gains (losses) included in other comprehensive income | 31 | 60 |
Net purchases, sales, calls, and maturities | (18) | 977 |
Balance at the end of period | $ 11,812 | $ 12,678 |
FAIR VALUE MEASUREMENTS (Deta36
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned, net | $ 31 | |
Fair Value measured on a Non-Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | $ 6,251 | 5,585 |
Other real estate owned, net | 31 | |
Fair Value measured on a Non-Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | $ 6,251 | 5,585 |
Other real estate owned, net | $ 31 |