Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 31, 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 | Jun. 30, 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 | 3,277,035 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 13,466 | $ 11,187 |
Securities available for sale (Note 2) | 175,172 | 160,136 |
Federal Home Loan Bank stock | 1,614 | 1,614 |
Federal Reserve Bank stock | 1,573 | 1,573 |
Loans held for sale | 2,734 | 4,957 |
Loans (Note 3) | 357,242 | 349,304 |
Allowance for loan losses (Note 3) | (4,296) | (4,194) |
Loans, net | 352,946 | 345,110 |
Premises and equipment, net | 11,872 | 12,120 |
Cash value of life insurance policies | 12,438 | 12,261 |
Intangible assets, net | 155 | 379 |
Goodwill | 13,728 | 13,728 |
Other assets | 4,725 | 4,681 |
Total assets | 590,423 | 567,746 |
Liabilities | ||
Deposits - noninterest-bearing | 124,134 | 122,937 |
Deposits - interest-bearing | 339,687 | 351,759 |
Total deposits | 463,821 | 474,696 |
Repurchase agreements | 5,379 | 9,460 |
Advances from Federal Home Loan Bank | 45,317 | 11,332 |
Other liabilities | 3,509 | 2,416 |
Total liabilities | 518,026 | 497,904 |
Shareholders' Equity | ||
Common stock and paid-in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,275,852 at June 30, 2016 and 3,295,228 at December 31, 2015 | 46,227 | 46,501 |
Retained earnings | 23,734 | 22,138 |
Accumulated other comprehensive income, net | 2,436 | 1,203 |
Total shareholders' equity | 72,397 | 69,842 |
Total liabilities and shareholders' equity | $ 590,423 | $ 567,746 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 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 | 3,275,852 | 3,295,228 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Interest income | ||||
Loans, including fees | $ 4,087 | $ 3,988 | $ 8,083 | $ 7,930 |
Securities: | ||||
Taxable | 584 | 485 | 1,137 | 937 |
Tax exempt | 363 | 357 | 729 | 706 |
Other | 3 | 2 | 9 | 5 |
Total interest income | 5,037 | 4,832 | 9,958 | 9,578 |
Interest expense | ||||
Deposits | 199 | 215 | 408 | 440 |
Advances from Federal Home Loan Bank | 45 | 28 | 75 | 47 |
Other | 3 | 10 | 5 | 22 |
Total interest expense | 247 | 253 | 488 | 509 |
Net interest income | 4,790 | 4,579 | 9,470 | 9,069 |
Provision for loan losses | 100 | |||
Net interest income after provision for loan losses | 4,790 | 4,579 | 9,470 | 8,969 |
Noninterest income | ||||
Customer service charges | 1,030 | 1,062 | 1,990 | 2,045 |
Insurance and investment commissions | 226 | 292 | 449 | 633 |
Gains on sales of loans | 419 | 309 | 838 | 812 |
Gains on sales of securities | 156 | 45 | 226 | 53 |
Losses on sales and write-downs of other assets | (55) | (23) | (76) | |
Earnings on life insurance policies | 89 | 87 | 177 | 475 |
Other | 131 | 111 | 236 | 202 |
Total noninterest income | 2,051 | 1,851 | 3,893 | 4,144 |
Noninterest expense | ||||
Salaries and benefits | 2,565 | 2,214 | 4,976 | 4,513 |
Occupancy and equipment | 692 | 593 | 1,333 | 1,188 |
Data processing | 539 | 578 | 1,098 | 1,132 |
Professional fees | 232 | 236 | 468 | 513 |
Supplies and postage | 95 | 73 | 220 | 178 |
Advertising and promotional | 89 | 58 | 132 | 125 |
Intangible amortization | 112 | 112 | 224 | 224 |
FDIC insurance | 73 | 72 | 140 | 149 |
Other | 504 | 549 | 1,107 | 1,022 |
Total noninterest expense | 4,901 | 4,485 | 9,698 | 9,044 |
Income before income tax | 1,940 | 1,945 | 3,665 | 4,069 |
Income tax expense | 495 | 514 | 947 | 996 |
Net income | $ 1,445 | $ 1,431 | $ 2,719 | $ 3,073 |
Basic earnings per share (Note 4) (in dollars per share) | $ 0.43 | $ 0.43 | $ 0.82 | $ 0.93 |
Diluted earnings per share (Note 4) (in dollars per share) | 0.43 | 0.43 | 0.82 | 0.93 |
Dividends declared per share (in dollars per share) | $ 0.17 | $ 0.17 | $ 0.34 | $ 0.32 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of activity in secondar market loans | ||||
Net income | $ 1,445 | $ 1,431 | $ 2,719 | $ 3,073 |
Other comprehensive income: | ||||
Changes in unrealized gains (losses) on investment securities available for sale, net of tax expense (benefit) | 673 | (428) | 1,382 | 126 |
Less: Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax expense (benefit) | (103) | (30) | (149) | (35) |
Other comprehensive income (loss), net of tax | 570 | (458) | 1,233 | 91 |
Comprehensive income | $ 2,015 | $ 973 | $ 3,952 | $ 3,164 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of activity in secondar market loans | ||||
Unrealized holding gains on available for sale securities, tax expense (benefit) | $ 347 | $ (220) | $ 712 | $ (70) |
Reclassification adjustment for gain recognized in net income, tax expense (benefit) | $ (53) | $ (15) | $ (77) | $ (18) |
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, 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 | 3,295,834 | |||
Net income | 3,073 | 3,073 | ||
Other comprehensive income | 91 | 91 | ||
Shares issued | $ 102 | 102 | ||
Shares issued (shares) | 7,217 | |||
Shares repurchased | $ (371) | (371) | ||
Shares repurchased (in shares) | (16,200) | |||
Change in ESOP repurchase obligation | $ (4) | (4) | ||
Effect of employee stock purchases | 6 | 6 | ||
Restricted stock units issued | $ 68 | 68 | ||
Restricted stock units issued (in shares) | 100 | |||
Cash dividends declared | (1,051) | (1,051) | ||
Balance, ending at Jun. 30, 2015 | $ 46,353 | 20,587 | 1,164 | 68,104 |
Balance, ending (in shares) at Jun. 30, 2015 | 3,286,951 | |||
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 | ||
Net income | 2,719 | $ 2,719 | ||
Other comprehensive income | 1,233 | 1,233 | ||
Shares issued | $ 130 | 130 | ||
Shares issued (shares) | 7,142 | |||
Shares repurchased | $ (678) | (678) | ||
Shares repurchased (in shares) | (30,000) | |||
Change in ESOP repurchase obligation | $ 127 | 127 | ||
Effect of employee stock purchases | 6 | 6 | ||
Restricted stock units issued | $ 141 | 141 | ||
Restricted stock units issued (in shares) | 3,482 | |||
Cash dividends declared | (1,123) | (1,123) | ||
Balance, ending at Jun. 30, 2016 | $ 46,227 | $ 23,734 | $ 2,436 | $ 72,397 |
Balance, ending (in shares) at Jun. 30, 2016 | 3,275,852 | 3,275,852 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividend declared, per share | $ 0.17 | $ 0.17 | $ 0.34 | $ 0.32 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 2,719 | $ 3,073 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for loan losses | 100 | |
Depreciation | 481 | 486 |
Amortization | 799 | 752 |
Compensation expense on stock purchases and restricted stock units | 147 | 74 |
Gains on sales of securities | (226) | (53) |
Gains on sales of loans | (838) | (812) |
Loans originated for sale | (22,737) | (7,544) |
Proceeds from loan sales | 25,633 | 7,663 |
Earnings on bank-owned life insurance | (177) | (475) |
Proceeds on bank-owned life insurance | 461 | |
Gains on sales of other real estate owned | 3 | |
Write-downs of other real estate owned | 76 | |
Proceeds from sales of other real estate owned | 28 | 124 |
Deferred federal income tax expense/(benefit) | (86) | (303) |
Net changes in other assets | 25 | (289) |
Net changes in other liabilities | 670 | (85) |
Net cash from operating activities | 6,441 | 3,248 |
Securities available for sale: | ||
Sales | 11,157 | 4,633 |
Maturities, prepayments and calls | 22,835 | 5,958 |
Purchases | (47,375) | (18,969) |
Loan originations and payments, net | (7,849) | 9,926 |
Additions to premises and equipment | (288) | (502) |
Net cash from investing activities | (21,520) | 1,046 |
Cash flows from financing activities: | ||
Net change in deposits | (10,875) | (12,040) |
Net change in repurchase agreements | (4,081) | (5,703) |
Proceeds from Federal Home Loan Bank advances | 202,000 | 88,575 |
Payments on Federal Home Loan Bank advances | (168,015) | (75,065) |
Issuance of common stock | 130 | 102 |
Repurchase of common stock | (678) | (371) |
Cash dividends | (1,123) | (1,051) |
Net cash from financing activities | 17,358 | (5,553) |
Net change in cash and cash equivalents | 2,279 | (1,259) |
Beginning cash and cash equivalents | 11,187 | 16,650 |
Ending cash and cash equivalents | 13,466 | 15,391 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 486 | 514 |
Cash paid for taxes | 100 | 1,970 |
Loans transferred to other real estate owned | $ 13 | $ 327 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 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 unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading. 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 June 30, 2016 and December 31, 2015, the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2016 and June 30, 2015, the Consolidated Statements of Comprehensive Income for the three- and six-month periods ended June 30, 2016 and June 30, 2015, the Consolidated Statements of Changes in Shareholders’ Equity for the six-month periods ended June 30, 2016 and June 30, 2015, and the Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2016 and June 30, 2015. Operating results for the six months ended June 30, 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 reported assets and net income. Stock Transactions A total of 3,304 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $77,000 under the terms of the Directors’ Stock Purchase Plan in the first six months of 2016. A total of 2,033 shares of common stock were issued upon the exercise of stock options in the first half of 2016. A total of 1,805 shares of common stock were issued to employees for a cash price of $42,000 under the Employee Stock Purchase Plan in the first half of 2016. A total of 3,482 shares of common stock were issued to employees for Restricted Stock Units that vested during the first six months of 2016. A total of 30,000 shares of common stock were repurchased by ChoiceOne in the first six months 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. Comprehensive Income Comprehensive income consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains and losses on securities available for sale and changes in the funded status of post-retirement plans, net of tax, which are also recognized as a separate component of shareholders’ equity. Accumulated other comprehensive income was as follows: (Dollars in thousands) As of June 30, 2016 2015 Unrealized gains on available for sale securities 3,498 1,538 Unrecognized gains on post-retirement benefits 193 225 Tax effect (1,255 ) (599 ) Accumulated other comprehensive income $ 2,436 $ 1,164 Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 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: June 30, 2016 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair U.S. Government and federal agency $ 65,995 $ 372 $ (52 ) $ 66,315 U.S. Treasury 2,078 42 — 2,120 State and municipal 84,094 2,784 (22 ) 86,856 Mortgage-backed 7,756 51 (3 ) 7,804 Corporate 7,908 71 (2 ) 7,977 Foreign debt 1,000 2 — 1,002 Equity securities 2,617 261 — 2,878 Asset-backed securities 226 — (6 ) 220 Total $ 171,674 $ 3,583 $ (85 ) $ 175,172 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 six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 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 was as follows: Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Beginning balance $ 382 $ 691 $ 272 $ 1,138 $ 43 $ 1,350 $ 249 $ 4,124 Charge-offs — — (29 ) — — — — (29 ) Recoveries — 8 28 23 — 142 — 201 Provision 18 (42 ) 6 (28 ) 2 (270 ) 315 — Ending balance $ 400 $ 657 $ 277 $ 1,133 $ 45 $ 1,222 $ 563 $ 4,296 Six Months Ended June 30, 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (33 ) (68 ) — — (69 ) — (170 ) Recoveries — 23 69 31 — 149 — 272 Provision (20 ) 81 (21 ) 72 (2 ) (246 ) 136 — Ending balance $ 400 $ 657 $ 277 $ 1,133 $ 45 $ 1,222 $ 563 $ 4,296 Individually evaluated for impairment $ 11 $ 11 $ 1 $ 177 $ — $ 364 $ — $ 564 Collectively evaluated for impairment $ 389 $ 646 $ 276 $ 956 $ 45 $ 858 $ 563 $ 3,732 Three Months Ended June 30, 2015 Beginning balance $ 201 $ 613 $ 193 $ 1,498 $ 39 $ 1,482 $ 295 $ 4,321 Charge-offs — — (55 ) — — (20 ) — (75 ) Recoveries 1 20 42 14 — 30 — 107 Provision 77 (136 ) 13 (228 ) (11 ) (116 ) 401 — Ending balance $ 279 $ 497 $ 193 $ 1,284 $ 28 $ 1,376 $ 696 $ 4,353 Six Months Ended June 30, 2015 Beginning balance $ 187 $ 527 $ 183 $ 1,641 $ 9 $ 1,193 $ 433 $ 4,173 Charge-offs — — (106 ) — — (21 ) — (127 ) Recoveries 1 48 79 21 — 58 — 207 Provision 91 (78 ) 37 (378 ) 19 146 263 100 Ending balance $ 279 $ 497 $ 193 $ 1,284 $ 28 $ 1,376 $ 696 $ 4,353 Individually evaluated for impairment $ — $ — $ 1 $ 333 $ — $ 332 $ — $ 666 Collectively evaluated for impairment $ 279 $ 497 $ 192 $ 951 $ 28 $ 1,044 $ 696 $ 3,687 Loans June 30, 2016 Individually evaluated for impairment $ 173 $ 294 $ 22 $ 2,628 $ — $ 2,916 $ 6,033 Collectively evaluated for impairment 34,500 97,436 20,887 103,606 5,427 89,353 351,209 Ending balance $ 34,673 $ 97,730 $ 20,909 $ 106,234 $ 5,427 $ 92,269 $ 357,242 December 31, 2015 Individually evaluated for impairment $ 50 $ 192 $ 24 $ 2,790 $ — $ 2,529 $ 5,585 Collectively evaluated for impairment 40,182 94,155 20,066 94,946 5,390 88,980 343,719 Ending balance $ 40,232 $ 94,347 $ 20,090 $ 97,736 $ 5,390 $ 91,509 $ 349,304 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) June 30, December 31, June 30, December 31, June 30, December 31, 2016 2015 2016 2015 2016 2015 Risk ratings 1 and 2 $ 7,979 $ 10,416 $ 11,315 $ 10,480 $ 6,505 $ 3,875 Risk rating 3 18,758 25,189 67,159 66,921 56,179 57,540 Risk rating 4 6,053 3,086 18,310 16,169 38,213 29,826 Risk rating 5 1,837 1,491 825 574 3,433 3,776 Risk rating 6 46 50 121 129 1,904 2,719 Risk rating 7 — — — 74 — — $ 34,673 $ 40,232 $ 97,730 $ 94,347 $ 106,234 $ 97,736 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) June 30, December 31, June 30, December 31, June 30, December 31, 2016 2015 2016 2015 2016 2015 Performing $ 20,909 $ 20,090 $ 5,427 $ 5,390 $ 91,687 $ 90,796 Nonperforming — — — — — 282 Nonaccrual — — — — 582 431 $ 20,909 $ 20,090 $ 5,427 $ 5,390 $ 92,269 $ 91,509 The following schedule provides information on loans that were considered TDRs that were modified during the three- and six-months periods ended June 30, 2016: Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Commercial real estate — $ — $ — 1 $ 128 $ 128 Residential real estate 2 150 150 3 179 179 Total 2 $ 150 $ 150 4 $ 307 $ 307 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. Loans are classified as performing when they are current as to principal and interest payments or are past due on payments less than 90 days. Loans are classified as nonperforming when they are past due 90 days or more as to principal and interest payments or are considered a troubled debt restructuring. Impaired loans by loan category as of June 30, 2016 and 2015 were as follows: Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized June 30, 2016 With no related allowance recorded Agricultural $ — $ — $ — $ 43 $ — Commercial and industrial — — — 25 — Consumer — — — — — Commercial real estate 1,253 1,450 — 1,351 5 Residential real estate 170 170 — 89 — Subtotal 1,423 1,620 — 1,508 5 With an allowance recorded Agricultural 173 175 11 90 14 Commercial and industrial 295 295 11 241 1 Consumer 22 22 1 23 1 Commercial real estate 1,375 1,917 177 1,482 54 Residential real estate 2,745 2,633 364 2,612 58 Subtotal 4,610 5,042 564 4,448 128 Total Agricultural 173 175 11 133 14 Commercial and industrial 294 295 11 266 1 Consumer 22 22 1 23 1 Commercial real estate 2,628 3,367 177 2,833 59 Residential real estate 2,916 2,803 364 2,701 58 Total $ 6,033 $ 6,662 $ 564 $ 5,956 $ 133 June 30, 2015 With no related allowance recorded Agricultural $ — $ — $ — $ — $ — Commercial and industrial 74 103 — 16 — Consumer — — — 3 — Commercial real estate 1,540 1,540 — 658 5 Residential real estate 13 13 — 300 — Subtotal 1,627 1,656 — 977 5 With an allowance recorded Agricultural 50 50 3 70 (6 ) Commercial and industrial 118 118 15 — — Consumer 24 24 1 26 1 Commercial real estate 1,250 1,755 191 2,408 39 Residential real estate 2,516 2,516 296 2,393 41 Subtotal 3,958 4,463 506 4,897 75 Total Agricultural 50 50 3 70 (6 ) Commercial and industrial 192 221 15 16 — Consumer 24 24 1 29 1 Commercial real estate 2,790 3,295 191 3,066 44 Residential real estate 2,529 2,529 296 2,693 41 Total $ 5,585 $ 6,119 $ 506 $ 5,874 $ 80 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 June 30, 2016 Agricultural $ — $ — $ — $ — $ 34,673 $ 34,673 $ — Commercial and industrial — 73 290 363 97,367 97,730 — Consumer 22 12 — 34 20,875 20,909 — Commercial real estate 265 261 280 806 105,428 106,234 — Construction real estate — — — — 5,427 5,427 — Residential real estate 83 810 238 1,131 91,138 92,269 102 $ 370 $ 1,156 $ 808 $ 2,334 $ 354,908 $ 357,242 $ 102 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) June 30, December 31, 2016 2015 Agricultural $ 46 $ 50 Commercial and industrial 289 77 Consumer — — Commercial real estate 1,719 1,640 Construction real estate — — Residential real estate 582 431 $ 2,636 $ 2,198 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 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 Six Months Ended (Dollars in thousands, except per share data) June 30, June 30, 2016 2015 2016 2015 Basic Earnings Per Share Net income available to common shareholders $ 1,445 $ 1,431 $ 2,719 $ 3,073 Weighted average common shares outstanding 3,299,836 3,285,290 3,298,037 3,287,063 Basic earnings per share $ 0.43 $ 0.43 $ 0.82 $ 0.93 Diluted Earnings Per Share Net income available to common shareholders $ 1,445 $ 1,431 $ 2,719 $ 3,073 Weighted average common shares outstanding 3,299,836 3,285,290 3,298,037 3,287,063 Plus dilutive stock options and restricted stock units 5,178 9,256 5,286 9,300 Weighted average common shares outstanding and potentially dilutive shares 3,305,014 3,294,546 3,303,323 3,296,363 Diluted earnings per share $ 0.43 $ 0.43 $ 0.82 $ 0.93 There were 30,000 stock options as of June 30, 2016 and zero as of June 30, 2015 with an exercise price more than the current market price. These stock options have been excluded from the calculation of diluted earnings above. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 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) June 30, 2016 Assets: Cash and due from banks $ 13,466 $ 13,466 $ 13,466 $ — $ — Securities available for sale 175,172 175,172 1,378 161,795 11,999 Federal Home Loan Bank and Federal Reserve Bank stock 3,187 3,187 — 3,187 — Loans held for sale 2,734 2,816 — — 2,816 Loans, net 352,946 355,062 — — 355,062 Liabilities: Noninterest-bearing deposits 124,134 124,134 — 124,134 — Interest-bearing deposits 339,687 319,200 — 319,200 — Repurchase agreements 5,379 5,379 — 5,379 — Federal Home Loan Bank advances 45,317 45,360 — 45,360 — 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 345,110 319,200 — — 319,200 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 financial instruments 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 June 30, 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 June 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2016 or December 31, 2015. Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated Investment Securities, Available for Sale – June 30, 2016 U.S. Treasury notes and bonds $ — $ 2,120 $ — $ 2,120 U.S. Government and federal agency — 66,315 — 66,315 State and municipal — 76,756 10,100 86,856 Mortgage-backed — 7,804 — 7,804 Corporate — 7,578 399 7,977 Foreign debt — 1,002 — 1,002 Equity securities 1,378 — 1,500 2,878 Asset backed securities — 220 — 220 Total $ 1,378 $ 161,795 $ 11,999 $ 175,172 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 $ 11,642 Total realized and unrealized gains included in income — — Total unrealized (gains) losses included in other comprehensive income (187 ) 772 Net purchases, sales, calls, and maturities 387 (368 ) Net transfers into Level 3 — — Balance, June 30 $ 11,999 $ 12,046 Of the Level 3 assets that were held by the Bank at June 30, 2016, the net unrealized gain for the six months ended June 30, 2016 was $187,000, which is recognized in other comprehensive income in the consolidated balance sheet . 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 Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Balance at Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans June 30, 2016 $ 6,033 $ — $ — $ 6,033 December 31, 2015 $ 5,585 $ — $ — $ 5,585 Other Real Estate June 30, 2016 $ 13 $ — $ — $ 13 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 ACCOUN16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 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 unaudited condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the company believes that the disclosures made are adequate to make the information not misleading. 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 June 30, 2016 and December 31, 2015, the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2016 and June 30, 2015, the Consolidated Statements of Comprehensive Income for the three- and six-month periods ended June 30, 2016 and June 30, 2015, the Consolidated Statements of Changes in Shareholders’ Equity for the six-month periods ended June 30, 2016 and June 30, 2015, and the Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2016 and June 30, 2015. Operating results for the six months ended June 30, 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 reported assets and net income. |
Stock Transactions | Stock Transactions A total of 3,304 shares of common stock were issued to ChoiceOneÂ’s Board of Directors for a cash price of $77,000 under the terms of the DirectorsÂ’ Stock Purchase Plan in the first six months of 2016. A total of 2,033 shares of common stock were issued upon the exercise of stock options in the first half of 2016. A total of 1,805 shares of common stock were issued to employees for a cash price of $42,000 under the Employee Stock Purchase Plan in the first half of 2016. A total of 3,482 shares of common stock were issued to employees for Restricted Stock Units that vested during the first six months of 2016. A total of 30,000 shares of common stock were repurchased by ChoiceOne in the first six months 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. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains and losses on securities available for sale and changes in the funded status of post-retirement plans, net of tax, which are also recognized as a separate component of shareholdersÂ’ equity. Accumulated other comprehensive income was as follows: (Dollars in thousands) As of June 30, 2016 2015 Unrealized gains on available for sale securities 3,498 1,538 Unrecognized gains on post-retirement benefits 193 225 Tax effect (1,255 ) (599 ) Accumulated other comprehensive income $ 2,436 $ 1,164 |
Reclassifications | Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. |
SUMMARY OF SIGNIFICANT ACCOUN17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of accumulated other comprehensive income | Accumulated other comprehensive income was as follows: (Dollars in thousands) As of June 30, 2016 2015 Unrealized gains on available for sale securities 3,498 1,538 Unrecognized gains on post-retirement benefits 193 225 Tax effect (1,255 ) (599 ) Accumulated other comprehensive income $ 2,436 $ 1,164 |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 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: June 30, 2016 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair U.S. Government and federal agency $ 65,995 $ 372 $ (52 ) $ 66,315 U.S. Treasury 2,078 42 — 2,120 State and municipal 84,094 2,784 (22 ) 86,856 Mortgage-backed 7,756 51 (3 ) 7,804 Corporate 7,908 71 (2 ) 7,977 Foreign debt 1,000 2 — 1,002 Equity securities 2,617 261 — 2,878 Asset-backed securities 226 — (6 ) 220 Total $ 171,674 $ 3,583 $ (85 ) $ 175,172 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 19
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 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 was as follows: Commercial (Dollars in thousands) and Commercial Construction Residential Agricultural Industrial Consumer Real Estate Real Estate Real Estate Unallocated Total Allowance for Loan Losses Beginning balance $ 382 $ 691 $ 272 $ 1,138 $ 43 $ 1,350 $ 249 $ 4,124 Charge-offs — — (29 ) — — — — (29 ) Recoveries — 8 28 23 — 142 — 201 Provision 18 (42 ) 6 (28 ) 2 (270 ) 315 — Ending balance $ 400 $ 657 $ 277 $ 1,133 $ 45 $ 1,222 $ 563 $ 4,296 Six Months Ended June 30, 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (33 ) (68 ) — — (69 ) — (170 ) Recoveries — 23 69 31 — 149 — 272 Provision (20 ) 81 (21 ) 72 (2 ) (246 ) 136 — Ending balance $ 400 $ 657 $ 277 $ 1,133 $ 45 $ 1,222 $ 563 $ 4,296 Individually evaluated for impairment $ 11 $ 11 $ 1 $ 177 $ — $ 364 $ — $ 564 Collectively evaluated for impairment $ 389 $ 646 $ 276 $ 956 $ 45 $ 858 $ 563 $ 3,732 Three Months Ended June 30, 2015 Beginning balance $ 201 $ 613 $ 193 $ 1,498 $ 39 $ 1,482 $ 295 $ 4,321 Charge-offs — — (55 ) — — (20 ) — (75 ) Recoveries 1 20 42 14 — 30 — 107 Provision 77 (136 ) 13 (228 ) (11 ) (116 ) 401 — Ending balance $ 279 $ 497 $ 193 $ 1,284 $ 28 $ 1,376 $ 696 $ 4,353 Six Months Ended June 30, 2015 Beginning balance $ 187 $ 527 $ 183 $ 1,641 $ 9 $ 1,193 $ 433 $ 4,173 Charge-offs — — (106 ) — — (21 ) — (127 ) Recoveries 1 48 79 21 — 58 — 207 Provision 91 (78 ) 37 (378 ) 19 146 263 100 Ending balance $ 279 $ 497 $ 193 $ 1,284 $ 28 $ 1,376 $ 696 $ 4,353 Individually evaluated for impairment $ — $ — $ 1 $ 333 $ — $ 332 $ — $ 666 Collectively evaluated for impairment $ 279 $ 497 $ 192 $ 951 $ 28 $ 1,044 $ 696 $ 3,687 Loans June 30, 2016 Individually evaluated for impairment $ 173 $ 294 $ 22 $ 2,628 $ — $ 2,916 $ 6,033 Collectively evaluated for impairment 34,500 97,436 20,887 103,606 5,427 89,353 351,209 Ending balance $ 34,673 $ 97,730 $ 20,909 $ 106,234 $ 5,427 $ 92,269 $ 357,242 December 31, 2015 Individually evaluated for impairment $ 50 $ 192 $ 24 $ 2,790 $ — $ 2,529 $ 5,585 Collectively evaluated for impairment 40,182 94,155 20,066 94,946 5,390 88,980 343,719 Ending balance $ 40,232 $ 94,347 $ 20,090 $ 97,736 $ 5,390 $ 91,509 $ 349,304 |
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) June 30, December 31, June 30, December 31, June 30, December 31, 2016 2015 2016 2015 2016 2015 Risk ratings 1 and 2 $ 7,979 $ 10,416 $ 11,315 $ 10,480 $ 6,505 $ 3,875 Risk rating 3 18,758 25,189 67,159 66,921 56,179 57,540 Risk rating 4 6,053 3,086 18,310 16,169 38,213 29,826 Risk rating 5 1,837 1,491 825 574 3,433 3,776 Risk rating 6 46 50 121 129 1,904 2,719 Risk rating 7 — — — 74 — — $ 34,673 $ 40,232 $ 97,730 $ 94,347 $ 106,234 $ 97,736 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) June 30, December 31, June 30, December 31, June 30, December 31, 2016 2015 2016 2015 2016 2015 Performing $ 20,909 $ 20,090 $ 5,427 $ 5,390 $ 91,687 $ 90,796 Nonperforming — — — — — 282 Nonaccrual — — — — 582 431 $ 20,909 $ 20,090 $ 5,427 $ 5,390 $ 92,269 $ 91,509 |
Schedule of troubled debt restructurings | The following schedule provides information on loans that were considered TDRs that were modified during the three- and six-months periods ended June 30, 2016: Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding (Dollars in thousands) Number of Recorded Recorded Number of Recorded Recorded Loans Investment Investment Loans Investment Investment Commercial real estate — $ — $ — 1 $ 128 $ 128 Residential real estate 2 150 150 3 179 179 Total 2 $ 150 $ 150 4 $ 307 $ 307 |
Schedule of impaired loans | Impaired loans by loan category as of June 30, 2016 and 2015 were as follows: Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized June 30, 2016 With no related allowance recorded Agricultural $ — $ — $ — $ 43 $ — Commercial and industrial — — — 25 — Consumer — — — — — Commercial real estate 1,253 1,450 — 1,351 5 Residential real estate 170 170 — 89 — Subtotal 1,423 1,620 — 1,508 5 With an allowance recorded Agricultural 173 175 11 90 14 Commercial and industrial 295 295 11 241 1 Consumer 22 22 1 23 1 Commercial real estate 1,375 1,917 177 1,482 54 Residential real estate 2,745 2,633 364 2,612 58 Subtotal 4,610 5,042 564 4,448 128 Total Agricultural 173 175 11 133 14 Commercial and industrial 294 295 11 266 1 Consumer 22 22 1 23 1 Commercial real estate 2,628 3,367 177 2,833 59 Residential real estate 2,916 2,803 364 2,701 58 Total $ 6,033 $ 6,662 $ 564 $ 5,956 $ 133 June 30, 2015 With no related allowance recorded Agricultural $ — $ — $ — $ — $ — Commercial and industrial 74 103 — 16 — Consumer — — — 3 — Commercial real estate 1,540 1,540 — 658 5 Residential real estate 13 13 — 300 — Subtotal 1,627 1,656 — 977 5 With an allowance recorded Agricultural 50 50 3 70 (6 ) Commercial and industrial 118 118 15 — — Consumer 24 24 1 26 1 Commercial real estate 1,250 1,755 191 2,408 39 Residential real estate 2,516 2,516 296 2,393 41 Subtotal 3,958 4,463 506 4,897 75 Total Agricultural 50 50 3 70 (6 ) Commercial and industrial 192 221 15 16 — Consumer 24 24 1 29 1 Commercial real estate 2,790 3,295 191 3,066 44 Residential real estate 2,529 2,529 296 2,693 41 Total $ 5,585 $ 6,119 $ 506 $ 5,874 $ 80 |
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 June 30, 2016 Agricultural $ — $ — $ — $ — $ 34,673 $ 34,673 $ — Commercial and industrial — 73 290 363 97,367 97,730 — Consumer 22 12 — 34 20,875 20,909 — Commercial real estate 265 261 280 806 105,428 106,234 — Construction real estate — — — — 5,427 5,427 — Residential real estate 83 810 238 1,131 91,138 92,269 102 $ 370 $ 1,156 $ 808 $ 2,334 $ 354,908 $ 357,242 $ 102 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) June 30, December 31, 2016 2015 Agricultural $ 46 $ 50 Commercial and industrial 289 77 Consumer — — Commercial real estate 1,719 1,640 Construction real estate — — Residential real estate 582 431 $ 2,636 $ 2,198 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of basic earnings per share and diluted 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 Six Months Ended (Dollars in thousands, except per share data) June 30, June 30, 2016 2015 2016 2015 Basic Earnings Per Share Net income available to common shareholders $ 1,445 $ 1,431 $ 2,719 $ 3,073 Weighted average common shares outstanding 3,299,836 3,285,290 3,298,037 3,287,063 Basic earnings per share $ 0.43 $ 0.43 $ 0.82 $ 0.93 Diluted Earnings Per Share Net income available to common shareholders $ 1,445 $ 1,431 $ 2,719 $ 3,073 Weighted average common shares outstanding 3,299,836 3,285,290 3,298,037 3,287,063 Plus dilutive stock options and restricted stock units 5,178 9,256 5,286 9,300 Weighted average common shares outstanding and potentially dilutive shares 3,305,014 3,294,546 3,303,323 3,296,363 Diluted earnings per share $ 0.43 $ 0.43 $ 0.82 $ 0.93 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 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) June 30, 2016 Assets: Cash and due from banks $ 13,466 $ 13,466 $ 13,466 $ — $ — Securities available for sale 175,172 175,172 1,378 161,795 11,999 Federal Home Loan Bank and Federal Reserve Bank stock 3,187 3,187 — 3,187 — Loans held for sale 2,734 2,816 — — 2,816 Loans, net 352,946 355,062 — — 355,062 Liabilities: Noninterest-bearing deposits 124,134 124,134 — 124,134 — Interest-bearing deposits 339,687 319,200 — 319,200 — Repurchase agreements 5,379 5,379 — 5,379 — Federal Home Loan Bank advances 45,317 45,360 — 45,360 — 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 345,110 319,200 — — 319,200 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) | 6 Months Ended |
Jun. 30, 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 Quoted Prices Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Assets Inputs Inputs Balance at (Level 1) (Level 2) (Level 3) Date Indicated Investment Securities, Available for Sale – June 30, 2016 U.S. Treasury notes and bonds $ — $ 2,120 $ — $ 2,120 U.S. Government and federal agency — 66,315 — 66,315 State and municipal — 76,756 10,100 86,856 Mortgage-backed — 7,804 — 7,804 Corporate — 7,578 399 7,977 Foreign debt — 1,002 — 1,002 Equity securities 1,378 — 1,500 2,878 Asset backed securities — 220 — 220 Total $ 1,378 $ 161,795 $ 11,999 $ 175,172 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 |
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 $ 11,642 Total realized and unrealized gains included in income — — Total unrealized (gains) losses included in other comprehensive income (187 ) 772 Net purchases, sales, calls, and maturities 387 (368 ) Net transfers into Level 3 — — Balance, June 30 $ 11,999 $ 12,046 |
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 Significant in Active Other Significant Markets for Identical Observable Unobservable (Dollars in thousands) Balance at Assets Inputs Inputs Dates Indicated (Level 1) (Level 2) (Level 3) Impaired Loans June 30, 2016 $ 6,033 $ — $ — $ 6,033 December 31, 2015 $ 5,585 $ — $ — $ 5,585 Other Real Estate June 30, 2016 $ 13 $ — $ — $ 13 December 31, 2015 $ 31 $ — $ — $ 31 |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Shares issued during period under Employee Stock Purchase Plan, shares | 1,805 | |
Shares issued during period under Employee Stock Purchase Plan, value | $ 42 | |
Common Stock and Paid In Capital [Member] | ||
Shares repurchased (in shares) | 30,000 | 16,200 |
Stock Options [Member] | ||
Shares issued upon exercise of options | 2,033 | |
Restricted stock [Member] | ||
Shares issued during the period upon vesting | 3,482 | |
Vesting period | 3 years | |
Directors' Stock Purchase Plan [Member] | ||
Shares issued during the period, shares | 3,304 | |
Shares issued during the period, value | $ 77 |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2015 |
Accounting Policies [Abstract] | |||
Unrealized gains on available for sale securities | $ 3,498 | $ 1,538 | |
Unrealized gains on post-retirement benefits | 193 | 225 | |
Tax effect | (1,255) | (599) | |
Accumulated other comprehensive income | $ 2,436 | $ 1,203 | $ 1,164 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 171,674 | $ 158,504 |
Gross Unrealized Gains | 3,583 | 2,096 |
Gross Unrealized Losses | (85) | (464) |
Fair Value | 175,172 | 160,136 |
U.S. Government and federal agency [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 65,995 | 57,406 |
Gross Unrealized Gains | 372 | 30 |
Gross Unrealized Losses | (52) | (229) |
Fair Value | 66,315 | 57,207 |
U.S. Treasury notes and bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,078 | 6,133 |
Gross Unrealized Gains | 42 | |
Gross Unrealized Losses | (33) | |
Fair Value | 2,120 | 6,100 |
State and municipal [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 84,094 | 76,005 |
Gross Unrealized Gains | 2,784 | 1,858 |
Gross Unrealized Losses | (22) | (109) |
Fair Value | 86,856 | 77,754 |
Mortgage-backed [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,756 | 6,989 |
Gross Unrealized Gains | 51 | 26 |
Gross Unrealized Losses | (3) | (45) |
Fair Value | 7,804 | 6,970 |
Corporate [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,908 | 8,418 |
Gross Unrealized Gains | 71 | 8 |
Gross Unrealized Losses | (2) | (39) |
Fair Value | 7,977 | 8,387 |
Foreign debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,000 | 1,000 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | (5) | |
Fair Value | 1,002 | 995 |
Equity securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,617 | 2,279 |
Gross Unrealized Gains | 261 | 174 |
Fair Value | 2,878 | 2,453 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 226 | 274 |
Gross Unrealized Losses | (6) | (4) |
Fair Value | $ 220 | $ 270 |
LOANS AND ALLOWANCE FOR LOAN 26
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Allowance for Loan Losses | |||||
Beginning balance | $ 4,124 | $ 4,321 | $ 4,194 | $ 4,173 | |
Charge-offs | (29) | (75) | (170) | (127) | |
Recoveries | 201 | 107 | 272 | 207 | |
Provision | 100 | ||||
Ending balance | 4,296 | 4,353 | 4,296 | 4,353 | |
Individually evaluated for impairment | 564 | 666 | 564 | 666 | |
Collectively evaluated for impairment | 3,732 | 3,687 | 3,732 | 3,687 | |
Loans | |||||
Individually evaluated for impairment | 6,033 | 6,033 | $ 5,585 | ||
Collectively evaluated for impairment | 351,209 | 351,209 | 343,719 | ||
Loans | 357,242 | 357,242 | 349,304 | ||
Agricultural [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 382 | 201 | 420 | 187 | |
Recoveries | 1 | 1 | |||
Provision | 18 | 77 | (20) | 91 | |
Ending balance | 400 | 279 | 400 | 279 | |
Individually evaluated for impairment | 11 | 11 | |||
Collectively evaluated for impairment | 389 | 279 | 389 | 279 | |
Loans | |||||
Individually evaluated for impairment | 173 | 173 | 50 | ||
Collectively evaluated for impairment | 34,500 | 34,500 | 40,182 | ||
Loans | 34,673 | 34,673 | 40,232 | ||
Commercial and Industrial [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 691 | 613 | 586 | 527 | |
Charge-offs | (33) | ||||
Recoveries | 8 | 20 | 23 | 48 | |
Provision | (42) | (136) | 81 | (78) | |
Ending balance | 657 | 497 | 657 | 497 | |
Individually evaluated for impairment | 11 | 11 | |||
Collectively evaluated for impairment | 646 | 497 | 646 | 497 | |
Loans | |||||
Individually evaluated for impairment | 294 | 294 | 192 | ||
Collectively evaluated for impairment | 97,436 | 97,436 | 94,155 | ||
Loans | 97,730 | 97,730 | 94,347 | ||
Consumer [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 272 | 193 | 297 | 183 | |
Charge-offs | (29) | (55) | (68) | (106) | |
Recoveries | 28 | 42 | 69 | 79 | |
Provision | 6 | 13 | (21) | 37 | |
Ending balance | 277 | 193 | 277 | 193 | |
Individually evaluated for impairment | 1 | 1 | 1 | 1 | |
Collectively evaluated for impairment | 276 | 192 | 276 | 192 | |
Loans | |||||
Individually evaluated for impairment | 22 | 22 | 24 | ||
Collectively evaluated for impairment | 20,887 | 20,887 | 20,066 | ||
Loans | 20,909 | 20,909 | 20,090 | ||
Commercial Real Estate [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 1,138 | 1,498 | 1,030 | 1,641 | |
Recoveries | 23 | 14 | 31 | 21 | |
Provision | (28) | (228) | 72 | (378) | |
Ending balance | 1,133 | 1,284 | 1,133 | 1,284 | |
Individually evaluated for impairment | 177 | 333 | 177 | 333 | |
Collectively evaluated for impairment | 956 | 951 | 956 | 951 | |
Loans | |||||
Individually evaluated for impairment | 2,628 | 2,628 | 2,790 | ||
Collectively evaluated for impairment | 103,606 | 103,606 | 94,946 | ||
Loans | 106,234 | 106,234 | 97,736 | ||
Construction Real Estate [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 43 | 39 | 46 | 9 | |
Provision | 2 | (11) | (2) | 19 | |
Ending balance | 45 | 28 | 45 | 28 | |
Collectively evaluated for impairment | 45 | 28 | 45 | 28 | |
Loans | |||||
Collectively evaluated for impairment | 5,427 | 5,427 | 5,390 | ||
Loans | 5,427 | 5,427 | 5,390 | ||
Residential Real Estate [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 1,350 | 1,482 | 1,388 | 1,193 | |
Charge-offs | (20) | (69) | (21) | ||
Recoveries | 142 | 30 | 149 | 58 | |
Provision | (270) | (116) | (246) | 146 | |
Ending balance | 1,222 | 1,376 | 1,222 | 1,376 | |
Individually evaluated for impairment | 364 | 332 | 364 | 332 | |
Collectively evaluated for impairment | 858 | 1,044 | 858 | 1,044 | |
Loans | |||||
Individually evaluated for impairment | 2,916 | 2,916 | 2,529 | ||
Collectively evaluated for impairment | 89,353 | 89,353 | 88,980 | ||
Loans | 92,269 | 92,269 | $ 91,509 | ||
Unallocated [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 249 | 295 | 427 | 433 | |
Provision | 315 | 401 | 136 | 263 | |
Ending balance | 563 | 696 | 563 | 696 | |
Collectively evaluated for impairment | $ 563 | $ 696 | $ 563 | $ 696 |
LOANS AND ALLOWANCE FOR LOAN 27
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 357,242 | $ 349,304 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 34,673 | 40,232 |
Agricultural [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 7,979 | 10,416 |
Agricultural [Member] | Risk ratings 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 18,758 | 25,189 |
Agricultural [Member] | Risk ratings 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 6,053 | 3,086 |
Agricultural [Member] | Risk ratings 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 1,837 | 1,491 |
Agricultural [Member] | Risk ratings 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 46 | 50 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 97,730 | 94,347 |
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 11,315 | 10,480 |
Commercial and Industrial [Member] | Risk ratings 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 67,159 | 66,921 |
Commercial and Industrial [Member] | Risk ratings 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 18,310 | 16,169 |
Commercial and Industrial [Member] | Risk ratings 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 825 | 574 |
Commercial and Industrial [Member] | Risk ratings 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 121 | 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 | 106,234 | 97,736 |
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 6,505 | 3,875 |
Commercial Real Estate [Member] | Risk ratings 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 56,179 | 57,540 |
Commercial Real Estate [Member] | Risk ratings 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 38,213 | 29,826 |
Commercial Real Estate [Member] | Risk ratings 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 3,433 | 3,776 |
Commercial Real Estate [Member] | Risk ratings 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 1,904 | $ 2,719 |
LOANS AND ALLOWANCE FOR LOAN 28
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 357,242 | $ 349,304 |
Nonaccrual past due loans | 2,636 | 2,198 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 20,909 | 20,090 |
Consumer [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 20,909 | 20,090 |
Construction Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 5,427 | 5,390 |
Construction Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 5,427 | 5,390 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 92,269 | 91,509 |
Nonaccrual past due loans | 582 | 431 |
Residential Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 91,687 | 90,796 |
Residential Real Estate [Member] | Nonperforming [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 282 |
LOANS AND ALLOWANCE FOR LOAN 29
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2016USD ($)N | Jun. 30, 2016USD ($)N | |
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | N | 2 | 4 |
Pre-Modification Outstanding Recorded Investment | $ 150 | $ 307 |
Post Modification Oustanding Recorded Investment | $ 150 | $ 307 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | N | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 128 | |
Post Modification Oustanding Recorded Investment | $ 128 | |
Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | N | 2 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 150 | $ 179 |
Post Modification Oustanding Recorded Investment | $ 150 | $ 179 |
LOANS AND ALLOWANCE FOR LOAN 30
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment With no related allowance recorded | $ 1,423 | $ 1,627 |
Unpaid Principal Balance With no related allowance recorded | 1,620 | 1,656 |
Average Recorded Investment With no related allowance recorded | 1,508 | 977 |
Interest Income Recognized With no related allowance recorded | 5 | 5 |
Recorded Investment With an allowance recorded | 4,610 | 3,958 |
Unpaid Principal Balance With an allowance recorded | 5,042 | 4,463 |
Related Allowance | 564 | 506 |
Average Recorded Investment With an allowance recorded | 4,448 | 4,897 |
Interest Income Recognized With an allowance recorded | 128 | 75 |
Recorded Investment | 6,033 | 5,585 |
Unpaid Principal Balance | 6,662 | 6,119 |
Average Recorded Investment | 5,956 | 5,874 |
Interest Income Recognized | 133 | 80 |
Agricultural [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Average Recorded Investment With no related allowance recorded | 43 | |
Recorded Investment With an allowance recorded | 173 | 50 |
Unpaid Principal Balance With an allowance recorded | 175 | 50 |
Related Allowance | 11 | 3 |
Average Recorded Investment With an allowance recorded | 90 | 70 |
Interest Income Recognized With an allowance recorded | 14 | (6) |
Recorded Investment | 173 | 50 |
Unpaid Principal Balance | 175 | 50 |
Average Recorded Investment | 133 | 70 |
Interest Income Recognized | 14 | (6) |
Commercial and Industrial [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment With no related allowance recorded | 74 | |
Unpaid Principal Balance With no related allowance recorded | 103 | |
Average Recorded Investment With no related allowance recorded | 25 | 16 |
Recorded Investment With an allowance recorded | 295 | 118 |
Unpaid Principal Balance With an allowance recorded | 295 | 118 |
Related Allowance | 11 | 15 |
Average Recorded Investment With an allowance recorded | 241 | |
Interest Income Recognized With an allowance recorded | 1 | |
Recorded Investment | 294 | 192 |
Unpaid Principal Balance | 295 | 221 |
Average Recorded Investment | 266 | 16 |
Interest Income Recognized | 1 | |
Consumer [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Average Recorded Investment With no related allowance recorded | 3 | |
Recorded Investment With an allowance recorded | 22 | 24 |
Unpaid Principal Balance With an allowance recorded | 22 | 24 |
Related Allowance | 1 | 1 |
Average Recorded Investment With an allowance recorded | 23 | 26 |
Interest Income Recognized With an allowance recorded | 1 | 1 |
Recorded Investment | 22 | 24 |
Unpaid Principal Balance | 22 | 24 |
Average Recorded Investment | 23 | 29 |
Interest Income Recognized | 1 | 1 |
Commercial Real Estate [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment With no related allowance recorded | 1,253 | 1,540 |
Unpaid Principal Balance With no related allowance recorded | 1,450 | 1,540 |
Average Recorded Investment With no related allowance recorded | 1,351 | 658 |
Interest Income Recognized With no related allowance recorded | 5 | 5 |
Recorded Investment With an allowance recorded | 1,375 | 1,250 |
Unpaid Principal Balance With an allowance recorded | 1,917 | 1,755 |
Related Allowance | 177 | 191 |
Average Recorded Investment With an allowance recorded | 1,482 | 2,408 |
Interest Income Recognized With an allowance recorded | 54 | 39 |
Recorded Investment | 2,628 | 2,790 |
Unpaid Principal Balance | 3,367 | 3,295 |
Average Recorded Investment | 2,833 | 3,066 |
Interest Income Recognized | 59 | 44 |
Residential Real Estate [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment With no related allowance recorded | 170 | 13 |
Unpaid Principal Balance With no related allowance recorded | 170 | 13 |
Average Recorded Investment With no related allowance recorded | 89 | 300 |
Recorded Investment With an allowance recorded | 2,745 | 2,516 |
Unpaid Principal Balance With an allowance recorded | 2,633 | 2,516 |
Related Allowance | 364 | 296 |
Average Recorded Investment With an allowance recorded | 2,612 | 2,393 |
Interest Income Recognized With an allowance recorded | 58 | 41 |
Recorded Investment | 2,916 | 2,529 |
Unpaid Principal Balance | 2,803 | 2,529 |
Average Recorded Investment | 2,701 | 2,693 |
Interest Income Recognized | $ 58 | $ 41 |
LOANS AND ALLOWANCE FOR LOAN 31
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | $ 2,334 | $ 4,517 | |
Loans Not Past Due | 354,908 | 344,787 | |
Loans | 357,242 | 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 | 370 | 2,024 | |
60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 1,156 | 983 | |
Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 808 | 1,510 |
Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 3 | ||
Loans Not Past Due | 34,673 | 40,229 | |
Loans | 34,673 | 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 | 363 | 489 | |
Loans Not Past Due | 97,367 | 93,858 | |
Loans | 97,730 | 94,347 | |
Commercial and Industrial [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 90 | ||
Commercial and Industrial [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 73 | 322 | |
Commercial and Industrial [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 290 | 77 |
Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 34 | 115 | |
Loans Not Past Due | 20,875 | 19,975 | |
Loans | 20,909 | 20,090 | |
Consumer [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 22 | 115 | |
Consumer [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 12 | ||
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 806 | 2,035 | |
Loans Not Past Due | 105,428 | 95,701 | |
Loans | 106,234 | 97,736 | |
Commercial Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 265 | 505 | |
Commercial Real Estate [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 261 | 297 | |
Commercial Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 280 | 1,233 |
Construction Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 299 | ||
Loans Not Past Due | 5,427 | 5,091 | |
Loans | 5,427 | 5,390 | |
Construction Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 299 | ||
Residential Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 1,131 | 1,576 | |
Loans Not Past Due | 91,138 | 89,933 | |
Loans | 92,269 | 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 | 83 | 1,012 | |
Residential Real Estate [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 810 | 364 | |
Residential Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | $ 238 | $ 200 |
[1] | Includes nonaccrual loans |
LOANS AND ALLOWANCE FOR LOAN 32
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 2,636 | $ 2,198 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 46 | 50 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 289 | 77 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 1,719 | 1,640 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 582 | $ 431 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Basic Earnings Per Share | ||||
Net income available to common shareholders | $ 1,445 | $ 1,431 | $ 2,719 | $ 3,073 |
Weighted average common shares outstanding | 3,299,836 | 3,285,290 | 3,298,037 | 3,287,063 |
Basic earnings per share | $ 0.43 | $ 0.43 | $ 0.82 | $ 0.93 |
Diluted Earnings Per Share | ||||
Plus dilutive stock options and restricted stock units | 5,178 | 9,256 | 5,286 | 9,300 |
Weighted average common shares outstanding and potentially dilutive shares | 3,305,014 | 3,294,546 | 3,303,323 | 3,296,363 |
Diluted earnings per share | $ 0.43 | $ 0.43 | $ 0.82 | $ 0.93 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||
Securities available for sale | $ 175,172 | $ 160,136 |
Liabilities: | ||
Noninterest-bearing deposits | 124,134 | 122,937 |
Interest-bearing deposits | 339,687 | 351,759 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Cash and due from banks | 13,466 | 11,187 |
Securities available for sale | 1,378 | 953 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Securities available for sale | 161,795 | 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 | 124,134 | 122,937 |
Interest-bearing deposits | 319,200 | 353,113 |
Repurchase agreements | 5,379 | 9,460 |
Federal Home Loan Bank advances | 45,360 | 12,028 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Securities available for sale | 11,999 | 11,799 |
Loans held for sale | 2,816 | |
Loans, net | 355,062 | 349,875 |
Carrying Amount [Member] | ||
Assets: | ||
Cash and due from banks | 13,466 | 11,187 |
Securities available for sale | 175,172 | 160,136 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,187 | 3,187 |
Loans held for sale | 2,734 | 4,957 |
Loans, net | 352,946 | 345,110 |
Liabilities: | ||
Noninterest-bearing deposits | 124,134 | 122,937 |
Interest-bearing deposits | 339,687 | 351,759 |
Repurchase agreements | 5,379 | 9,460 |
Federal Home Loan Bank advances | 45,317 | 11,332 |
Estimated Fair Value [Member] | ||
Assets: | ||
Cash and due from banks | 13,466 | 11,187 |
Securities available for sale | 175,172 | 160,136 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,187 | 3,187 |
Loans held for sale | 2,816 | 5,109 |
Loans, net | 355,062 | 349,875 |
Liabilities: | ||
Noninterest-bearing deposits | 124,134 | 122,937 |
Interest-bearing deposits | 319,200 | 353,113 |
Repurchase agreements | 5,379 | 9,460 |
Federal Home Loan Bank advances | $ 45,360 | $ 12,028 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Narrative) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Fair Value Disclosures [Abstract] | |
Total unrealized gains (losses) included in other comprehensive income | $ (187) |
Level 3 securities purchased | 750 |
Level 3 securities matured or called | $ 182 |
FAIR VALUE MEASUREMENTS (Deta37
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 175,172 | $ 160,136 |
Equity securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,878 | 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 | 2,120 | 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 | 66,315 | 57,207 |
State and municipal [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 86,856 | 77,754 |
Mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,804 | 6,970 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 7,977 | 8,387 |
Foreign debt [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 1,002 | 995 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 220 | 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 | 1,378 | 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 | 161,795 | 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 | 11,999 | 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 | 175,172 | 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 | 2,878 | 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 | 2,120 | 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 | 66,315 | 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 | 86,856 | 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 | 7,804 | 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 | 7,977 | 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 | 1,002 | 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 | 220 | 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 | 1,378 | 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 | 1,378 | 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 | 161,795 | 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 | 2,120 | 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 | 66,315 | 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 | 76,756 | 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 | 7,804 | 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 | 7,578 | 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 | 1,002 | 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 | 220 | 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 | 11,999 | 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 | 10,100 | 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 | $ 399 | $ 397 |
FAIR VALUE MEASUREMENTS (Deta38
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 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 | $ (187) | |
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 | $ 11,642 |
Total unrealized gains (losses) included in other comprehensive income | (187) | 772 |
Net purchases, sales, calls, and maturities | 387 | (368) |
Balance at the end of period | $ 11,999 | $ 12,046 |
FAIR VALUE MEASUREMENTS (Deta39
FAIR VALUE MEASUREMENTS (Details 2) - Fair Value measured on a Non-Recurring Basis [Member] - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | $ 6,033 | $ 5,585 |
Other real estate owned, net | 13 | 31 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 6,033 | 5,585 |
Other real estate owned, net | $ 13 | $ 31 |