Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
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, 2017 | |
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 | 3,453,063 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 17,050 | $ 14,809 |
Securities available for sale (Note 2) | 180,448 | 174,388 |
Federal Home Loan Bank stock | 1,994 | 1,994 |
Federal Reserve Bank stock | 1,573 | 1,573 |
Loans held for sale | 1,990 | 1,974 |
Loans to other financial institutions | 4,162 | |
Loans (Note 3) | 379,448 | 369,000 |
Allowance for loan losses (Note 3) | (4,098) | (4,277) |
Loans, net | 375,350 | 364,723 |
Premises and equipment, net | 12,473 | 12,588 |
Cash value of life insurance policies | 14,315 | 14,117 |
Goodwill | 13,728 | 13,728 |
Other assets | 6,984 | 7,477 |
Total assets | 630,067 | 607,371 |
Liabilities | ||
Deposits - noninterest-bearing | 133,956 | 127,611 |
Deposits - interest-bearing | 390,388 | 384,775 |
Total deposits | 524,344 | 512,386 |
Repurchase agreements | 2,302 | 7,913 |
Advances from Federal Home Loan Bank | 24,284 | 12,301 |
Other liabilities | 3,609 | 3,073 |
Total liabilities | 554,539 | 535,673 |
Shareholders' Equity | ||
Common stock and paid in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,452,354 at June 30, 2017 and 3,277,944 at December 31, 2016 | 50,295 | 46,299 |
Retained earnings | 24,148 | 25,997 |
Accumulated other comprehensive income (loss), net | 1,085 | (598) |
Total shareholders' equity | 75,528 | 71,698 |
Total liabilities and shareholders' equity | $ 630,067 | $ 607,371 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized | 7,000,000 | 7,000,000 |
Common stock, outstanding | 3,452,354 | 3,277,944 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest income | ||||
Loans, including fees | $ 4,401 | $ 4,087 | $ 8,565 | $ 8,083 |
Securities: | ||||
Taxable | 663 | 584 | 1,284 | 1,137 |
Tax exempt | 352 | 363 | 713 | 729 |
Other | 9 | 3 | 24 | 9 |
Total interest income | 5,425 | 5,037 | 10,586 | 9,958 |
Interest expense | ||||
Deposits | 292 | 199 | 540 | 408 |
Advances from Federal Home Loan Bank | 52 | 45 | 107 | 75 |
Other | 4 | 3 | 7 | 5 |
Total interest expense | 348 | 247 | 654 | 488 |
Net interest income | 5,077 | 4,790 | 9,932 | 9,470 |
Provision for loan losses | 25 | 25 | ||
Net interest income after provision for loan losses | 5,052 | 4,790 | 9,907 | 9,470 |
Noninterest income | ||||
Customer service charges | 1,049 | 1,030 | 2,023 | 1,990 |
Insurance and investment commissions | 262 | 226 | 500 | 449 |
Gains on sales of loans | 341 | 419 | 565 | 838 |
Gains on sales of securities | 60 | 156 | 126 | 226 |
(Losses) gains on sales and write-downs of other assets | 4 | 4 | (23) | |
Earnings on life insurance policies | 99 | 89 | 198 | 177 |
Other | 127 | 131 | 258 | 236 |
Total noninterest income | 1,942 | 2,051 | 3,674 | 3,893 |
Noninterest expense | ||||
Salaries and benefits | 2,591 | 2,565 | 5,106 | 4,976 |
Occupancy and equipment | 689 | 692 | 1,397 | 1,333 |
Data processing | 554 | 539 | 1,130 | 1,098 |
Professional fees | 262 | 232 | 491 | 468 |
Supplies and postage | 90 | 95 | 191 | 220 |
Advertising and promotional | 73 | 89 | 127 | 132 |
Intangible amortization | 112 | 224 | ||
FDIC insurance | 46 | 73 | 100 | 140 |
Other | 474 | 504 | 906 | 1,107 |
Total noninterest expense | 4,779 | 4,901 | 9,448 | 9,698 |
Income before income tax | 2,214 | 1,940 | 4,133 | 3,665 |
Income tax expense | 580 | 495 | 1,052 | 947 |
Net income | $ 1,635 | $ 1,445 | $ 3,081 | $ 2,719 |
Basic earnings per share (Note 4) (in dollars per share) | $ 0.47 | $ 0.41 | $ 0.89 | $ 0.78 |
Diluted earnings per share (Note 4) (in dollars per share) | 0.47 | 0.41 | 0.89 | 0.78 |
Dividends declared per share (in dollars per share) | $ 0.17 | $ 0.16 | $ 0.33 | $ 0.32 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,635 | $ 1,445 | $ 3,081 | $ 2,719 |
Other comprehensive income: | ||||
Changes in net unrealized gains on investment securities available for sale, net of tax expense of $557 and $347 for the three months ended June 30, 2017 and June 30, 2016 respectively. Changes in net unrealized gains on investment securities available for sale, net of tax expense of $910 and $712 for the six months ended June 30, 2017 and June 30, 2016 respectively. | 1,082 | 673 | 1,766 | 1,382 |
Less: Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax benefit of $21 and $53 for the three months ended June 30, 2017 and June 30, 2016 respectively. Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax benefit of $43 and $77 for the six months ended June 30, 2017 and June 30, 2016 respectively. | (39) | (103) | (83) | (149) |
Other comprehensive income, net of tax | 1,043 | 570 | 1,683 | 1,233 |
Comprehensive income | $ 2,677 | $ 2,015 | $ 4,764 | $ 3,952 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized holding gains on available for sale securities, tax expense (benefit) | $ 557 | $ 347 | $ 910 | $ 712 |
Reclassification adjustment for gain recognized in net income, tax expense (benefit) | $ 21 | $ 53 | $ 43 | $ 77 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock and Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss),Net [Member] | Total |
Balance, beginning at Dec. 31, 2015 | $ 46,501 | $ 22,138 | $ 1,203 | $ 69,842 |
Balance, beginning (in shares) at Dec. 31, 2015 | 3,295,228 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 2,719 | 2,719 | ||
Other comprehensive income | 1,233 | 1,233 | ||
Shares issued | $ 130 | 130 | ||
Shares issued (in 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 ($0.33 and $0.32 per share for the six months ended June 30, 2017 and June 30, 2016 respectively) | (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 | |||
Balance, beginning at Dec. 31, 2016 | $ 46,299 | 25,997 | (598) | $ 71,698 |
Balance, beginning (in shares) at Dec. 31, 2016 | 3,277,944 | 3,277,944 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 3,081 | $ 3,081 | ||
Other comprehensive income | 1,683 | 1,683 | ||
Shares issued | $ 82 | 82 | ||
Shares issued (in shares) | 5,318 | |||
Effect of employee stock purchases | $ 6 | 6 | ||
Stock options exercised | $ 13 | 13 | ||
Stock options exercised (in shares) | 1,000 | |||
Stock-based compensation expense | $ 116 | 116 | ||
Restricted stock units issued (in shares) | 4,104 | |||
Stock dividend declared (5%) | $ 3,779 | (3,779) | ||
Stock dividend declared (5%) (in shares) | 163,988 | |||
Cash dividends declared ($0.33 and $0.32 per share for the six months ended June 30, 2017 and June 30, 2016 respectively) | (1,152) | (1,152) | ||
Balance, ending at Jun. 30, 2017 | $ 50,295 | $ 24,148 | $ 1,085 | $ 75,528 |
Balance, ending (in shares) at Jun. 30, 2017 | 3,452,354 | 3,452,354 |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividend declared, per share | $ 0.17 | $ 0.16 | $ 0.33 | $ 0.32 |
Stock dividend declared | 5.00% |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 3,081 | $ 2,719 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for loan losses | 25 | |
Depreciation | 643 | 481 |
Amortization | 549 | 799 |
Compensation expense on stock purchases and restricted stock units | 163 | 147 |
Gains on sales of securities | (126) | (226) |
Gains on sales of loans | (565) | (838) |
Loans originated for sale | (14,456) | (22,737) |
Proceeds from loan sales | 14,180 | 25,633 |
Earnings on bank-owned life insurance | (198) | (177) |
Gains on sales of other real estate owned | 3 | |
Proceeds from sales of other real estate owned | 172 | 28 |
Deferred federal income tax expense/(benefit) | 138 | (86) |
Net changes in other assets | 309 | 25 |
Net changes in other liabilities | (468) | 670 |
Net cash from operating activities | 3,447 | 6,441 |
Securities available for sale: | ||
Sales | 12,520 | 11,157 |
Maturities, prepayments and calls | 8,011 | 22,835 |
Purchases | (24,301) | (47,375) |
Loan originations and payments, net | (14,378) | (7,849) |
Additions to premises and equipment | (291) | (288) |
Net cash from investing activities | (18,439) | (21,520) |
Cash flows from financing activities: | ||
Net change in deposits | 11,958 | (10,875) |
Net change in repurchase agreements | (5,611) | (4,081) |
Proceeds from Federal Home Loan Bank advances | 117,500 | 202,000 |
Payments on Federal Home Loan Bank advances | (105,517) | (168,015) |
Issuance of common stock | 55 | 130 |
Repurchase of common stock | (678) | |
Cash dividends | (1,152) | (1,123) |
Net cash from financing activities | 17,233 | 17,358 |
Net change in cash and cash equivalents | 2,241 | 2,279 |
Beginning cash and cash equivalents | 14,809 | 11,187 |
Ending cash and cash equivalents | 17,050 | 13,466 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 596 | 486 |
Cash paid for taxes | 800 | 100 |
Loans transferred to other real estate owned | $ 207 | $ 13 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 and December 31, 2016, the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2017 and June 30, 2016, the Consolidated Statements of Comprehensive Income for the three- and six-month periods ended June 30, 2017 and June 30, 2016, the Consolidated Statements of Changes in Shareholders’ Equity for the six-month periods ended June 30, 2017 and June 30, 2016, and the Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2017 and June 30, 2016. Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. 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, 2016. 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 3,172 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $73,379 under the terms of the Directors’ Stock Purchase Plan in the first six months of 2017. A total of 1,000 shares of common stock were issued upon the exercise of stock options in the first half of 2017. A total of 2,146 shares of common stock were issued to employees for a cash price of $41,564 under the Employee Stock Purchase Plan in the first half of 2017. A total of 4,104 shares of common stock were issued to employees for Restricted Stock Units that vested during the first six months of 2017. 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. Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 55,202 $ 38 $ (292 ) $ 54,948 U.S. Treasury 4,097 7 (10 ) 4,094 State and municipal 94,269 1,744 (172 ) 95,841 Mortgage-backed 10,165 37 (84 ) 10,118 Corporate 7,500 22 (14 ) 7,508 Foreign debt 4,512 — (57 ) 4,455 Equity securities 3,083 269 — 3,352 Asset-backed securities 133 — (1 ) 132 Total $ 178,961 $ 2,117 $ (630 ) $ 180,448 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 59,864 $ 34 $ (846 ) $ 59,052 U.S. Treasury 4,111 — (39 ) 4,072 State and municipal 89,169 748 (944 ) 88,973 Mortgage-backed 7,925 19 (155 ) 7,789 Corporate 7,069 12 (40 ) 7,041 Foreign debt 4,514 — (114 ) 4,400 Equity securities 2,617 266 — 2,883 Asset-backed securities 182 — (4 ) 178 Total $ 175,451 $ 1,079 $ (2,142 ) $ 174,388 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, 2017. 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. Presented below is a schedule of maturities of securities as of June 30, 2017, the fair value of securities as of June 30, 2017 and December 31, 2016 and the weighted average yields of securities as of June 30, 2017: Securities maturing within: Fair Value Fair Value Less than 1 Year - 5 Years - More than at June 30, at Dec. 31, (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2017 2016 U.S. Government and federal agency $ 22,353 $ 30,639 $ 1,956 $ — $ 54,948 $ 59,052 U.S. Treasury notes and bonds — 4,094 — — 4,094 4,072 State and municipal 9,360 47,344 36,353 2,784 95,841 88,973 Corporate 1,800 5,206 502 — 7,508 7,041 Foreign debt securities 999 3,456 — — 4,455 4,400 Asset-backed securities 132 — — — 132 178 Total debt securities 34,644 90,739 38,811 2,784 166,978 163,716 Mortgage-backed securities — 9,435 682 — 10,117 7,789 Equity securities (2) — — 1,001 2,351 3,352 2,883 Total $ 34,644 $ 100,174 $ 40,494 $ 5,135 $ 180,447 $ 174,388 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency 1.92 % 1.56 % 1.78 % — % 1.71 % U.S. Treasury notes and bonds — 1.54 — — 1.54 State and municipal (1) 2.93 3.11 3.45 2.00 3.19 Corporate 1.28 2.18 — — 1.82 Foreign debt securities 1.10 1.44 — — 1.37 Asset-backed securities 1.40 — — — 1.40 Mortgage-backed securities — 2.15 2.05 — 2.14 Equity securities (2) — — 4.61 0.96 2.05 (1) The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental tax rate of 34%. (2) Equity securities are preferred and common stock that may or may not have a stated maturity. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 6 Months Ended |
Jun. 30, 2017 | |
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: (Dollars in thousands) Agricultural Commercial Consumer Commercial Real Estate Construction Real Estate Residential Unallocated Total Allowance for Loan Losses Beginning balance $ 406 $ 745 $ 286 $ 1,414 $ 23 $ 727 $ 724 $ 4,325 Charge-offs — (352 ) (57 ) — — — — (409 ) Recoveries — — 39 49 40 29 — 157 Provision (11 ) 511 26 88 (39 ) (7 ) (543 ) 25 Ending balance $ 395 $ 904 $ 294 $ 1,551 $ 24 $ 749 $ 181 $ 4,098 Six Months Ended June 30, 2017 Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (362 ) (137 ) — — (34 ) — (533 ) Recoveries — — 91 161 40 37 — 329 Provision (38 ) 578 35 (48 ) (78 ) (268 ) (156 ) 25 Ending balance $ 395 $ 904 $ 294 $ 1,551 $ 24 $ 749 $ 181 $ 4,098 Individually evaluated for impairment $ — $ 27 $ 4 $ 65 $ — $ 271 $ — $ 367 Collectively evaluated for impairment $ 395 $ 877 $ 290 $ 1,486 $ 24 $ 478 $ 181 $ 3,731 Three Months Ended June 30, 2016 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 0 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 0 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 Loans Individually evaluated for impairment $ 442 $ 309 $ 30 $ 887 $ — $ 2,715 $ 4,383 Collectively evaluated for impairment 41,303 101,185 23,373 116,065 5,437 87,702 375,065 Ending balance $ 41,745 $ 101,494 $ 23,403 $ 116,952 $ 5,437 $ 90,417 $ 379,448 December 31, 2016 Individually evaluated for impairment $ 526 $ 301 $ 28 $ 1,073 $ — $ 2,983 $ 4,911 Collectively evaluated for impairment 44,088 95,787 21,568 109,689 6,153 86,804 364,089 Ending balance $ 44,614 $ 96,088 $ 21,596 $ 110,762 $ 6,153 $ 89,787 $ 369,000 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, 2017 2016 2017 2016 2017 2016 Risk ratings 1 and 2 $ 11,046 $ 12,005 $ 12,442 $ 12,135 $ 6,741 $ 8,013 Risk rating 3 22,173 23,852 60,843 56,714 69,070 59,343 Risk rating 4 7,715 7,505 27,402 25,895 37,610 39,641 Risk rating 5 369 726 515 1,267 1,904 1,867 Risk rating 6 442 526 292 77 1,627 1,898 Risk rating 7 — — — — — — $ 41,745 $ 44,614 $ 101,494 $ 96,088 $ 116,952 $ 110,762 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, 2017 2016 2017 2016 2017 2016 Performing $ 23,392 $ 21,590 $ 5,437 $ 6,153 $ 89,469 $ 88,767 Nonperforming 6 — — — 504 229 Nonaccrual 5 6 — — 444 791 $ 23,403 $ 21,596 $ 5,437 $ 6,153 $ 90,417 $ 89,787 The following schedule provides information on loans that were considered TDRs that were modified during the three and six month periods ended June 30, 2016. There were no loans that were considered TDRs that were modified during the three and six month periods ended June 30, 2017. 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, 2017 and 2016 were as follows: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance June 30, 2017 With no related allowance recorded Agricultural $ 442 $ 461 $ — Commercial and industrial 176 176 — Consumer — — — Commercial real estate 97 227 — Residential real estate 173 173 — Subtotal 888 1,037 — With an allowance recorded Agricultural — — — Commercial and industrial 133 374 27 Consumer 30 30 4 Commercial real estate 790 868 65 Residential real estate 2,542 2,564 271 Subtotal 3,495 3,836 367 Total Agricultural 442 461 — Commercial and industrial 309 550 27 Consumer 30 30 4 Commercial real estate 887 1,095 65 Residential real estate 2,715 2,737 271 Total $ 4,383 $ 4,873 $ 367 December 31, 2016 With no related allowance recorded Agricultural $ 482 $ 485 $ — Commercial and industrial 206 207 — Consumer — — — Commercial real estate 342 939 — Residential real estate 301 292 — Subtotal 1,331 1,923 — With an allowance recorded Agricultural 44 44 3 Commercial and industrial 95 95 11 Consumer 28 28 2 Commercial real estate 731 804 91 Residential real estate 2,682 2,711 296 Subtotal 3,580 3,682 403 Total Agricultural 526 529 3 Commercial and industrial 301 302 11 Consumer 28 28 2 Commercial real estate 1,073 1,743 91 Residential real estate 2,983 3,003 296 Total $ 4,911 $ 5,605 $ 403 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, 2017 Agricultural $ — $ — $ — $ — $ 41,745 $ 41,745 $ — Commercial and industrial 73 — 235 308 101,186 101,494 — Consumer 30 49 6 85 23,318 23,403 6 Commercial real estate 106 — 24 130 116,822 116,952 — Construction real estate — — — — 5,437 5,437 — Residential real estate 172 579 619 1,370 89,047 90,417 504 $ 381 $ 628 $ 884 $ 1,893 $ 377,555 $ 379,448 $ 510 December 31, 2016 Agricultural $ — $ — $ — $ — $ 44,614 $ 44,614 $ — Commercial and industrial — 30 245 275 95,813 96,088 — Consumer 99 2 6 107 21,489 21,596 — Commercial real estate — — 260 260 110,502 110,762 — Construction real estate — — — — 6,153 6,153 — Residential real estate 1,027 109 646 1,782 88,005 89,787 229 $ 1,126 $ 141 $ 1,157 $ 2,424 $ 366,576 $ 369,000 $ 229 (1) Includes nonaccrual loans. Nonaccrual loans by loan category follow: (Dollars in thousands) June 30, December 31, 2017 2016 Agricultural $ 442 $ 482 Commercial and industrial 285 245 Consumer 5 6 Commercial real estate 250 458 Construction real estate — — Residential real estate 443 792 $ 1,425 $ 1,983 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 2016 2017 2016 Basic Earnings Per Share Net income available to common shareholders $ 1,635 $ 1,445 $ 3,081 $ 2,719 Weighted average common shares outstanding 3,449,800 3,464,828 3,446,409 3,462,939 Basic earnings per share $ 0.47 $ 0.41 $ 0.89 $ 0.78 Diluted Earnings Per Share Net income available to common shareholders $ 1,635 $ 1,445 $ 3,081 $ 2,719 Weighted average common shares outstanding 3,449,800 3,464,828 3,446,409 3,462,939 Plus dilutive stock options and restricted stock units 4,049 5,437 3,482 5,550 Weighted average common shares outstanding and potentially dilutive shares 3,453,849 3,470,265 3,449,891 3,468,489 Diluted earnings per share $ 0.47 $ 0.41 $ 0.89 $ 0.78 Note that 2016 share amounts have been adjusted for the 5% stock dividend occurring during 2017. There were 31,500 stock options for the three months ended June 30, 2017 and 30,000 for the three months ended June 30, 2016 with an exercise price more than the current market price. These stock options have been excluded from the calculation of diluted earnings above. There were 47,250 stock options for the six months ended June 30, 2017 and 30,000 for the six months ended June 30, 2016 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, 2017 | |
Investments, All Other Investments [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, 2017 Assets: Cash and due from banks $ 17,050 $ 17,050 $ 17,050 $ — $ — Securities available for sale 180,448 180,448 1,852 163,738 14,858 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,990 2,051 — — 2,051 Loans to other financial institutions 4,162 4,162 4,162 Loans, net 375,350 382,827 — — 382,827 Liabilities: Noninterest-bearing deposits 133,956 133,956 — 133,956 — Interest-bearing deposits 390,388 389,473 — 389,473 — Repurchase agreements 2,302 2,302 — 2,302 — Federal Home Loan Bank advances 24,284 24,308 — 24,308 — December 31, 2016 Assets: Cash and due from banks $ 14,809 $ 14,809 $ 14,809 $ — $ — Securities available for sale 174,388 174,388 1,383 157,902 15,103 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,974 2,044 — 2,044 — Loans, net 364,723 365,780 — — 365,780 Liabilities: Noninterest-bearing deposits 127,611 127,611 — 127,611 — Interest-bearing deposits 384,775 383,879 — 383,879 — Repurchase agreements 7,913 7,913 — 7,913 — Federal Home Loan Bank advances 12,301 12,323 — 12,323 — 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, 2017 and December 31, 2016 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, 2017 and December 31, 2016 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, 2017 | |
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, 2017 or December 31, 2016. Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) Quoted Prices Significant Significant Balance at Investment Securities, Available for Sale – June 30, 2017 U.S. Treasury notes and bonds $ — $ 4,094 $ — $ 4,094 U.S. Government and federal agency — 54,948 — 54,948 State and municipal — 82,483 13,358 95,841 Mortgage-backed — 10,118 — 10,118 Corporate — 7,508 — 7,508 Foreign debt — 4,455 — 4,455 Equity securities 1,852 — 1,500 3,352 Asset backed securities — 132 — 132 Total $ 1,852 $ 163,738 $ 14,858 $ 180,448 Investment Securities, Available for Sale - December 31, 2016 U.S. Treasury notes and bonds $ — $ 4,072 $ — $ 4,072 U.S. Government and federal agency — 59,052 — 59,052 State and municipal — 75,370 13,603 88,973 Mortgage-backed — 7,789 — 7,789 Corporate — 7,041 — 7,041 Foreign debt — 4,400 — 4,400 Equity securities 1,383 — 1,500 2,883 Asset backed securities — 178 — 178 Total $ 1,383 $ 157,902 $ 15,103 $ 174,388 Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) 2017 2016 Investment Securities, Available for Sale Balance, January 1 $ 15,103 $ 11,799 Total realized and unrealized gains included in income — — Total unrealized gains (losses) included in other comprehensive income 162 (187 ) Net purchases, sales, calls, and maturities (407 ) 387 Net transfers into Level 3 — — Balance, June 30 $ 14,858 $ 11,999 Of the Level 3 assets that were held by the Bank at June 30, 2017, the net unrealized gain for the six months ended June 30, 2017 was $162,000, which is recognized in other comprehensive income in the consolidated balance sheet. No Level 3 securities were purchased during the first half of 2017, $401,000 of Level 3 securities matured or were called, and there were $6,000 in principal paydowns in the same period. Of the Level 3 assets that were held by the Bank at June 30, 2016, the net unrealized loss for the six months ended June 30, 2016 was $187,000, which is recognized in other comprehensive income in the consolidated balance sheet. $750,000 of Level 3 securities were purchased during the first half of 2016, $182,000 of Level 3 securities matured or were called, and there were $181,000 in principal payments in the same period. 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, 2017 $ 4,383 $ — $ — $ 4,383 December 31, 2016 $ 4,911 $ — $ — $ 4,911 Other Real Estate June 30, 2017 $ 472 $ — $ — $ 472 December 31, 2016 $ 437 $ — $ — $ 437 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, 2017 | |
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, 2017 and December 31, 2016, the Consolidated Statements of Income for the three- and six-month periods ended June 30, 2017 and June 30, 2016, the Consolidated Statements of Comprehensive Income for the three- and six-month periods ended June 30, 2017 and June 30, 2016, the Consolidated Statements of Changes in Shareholders’ Equity for the six-month periods ended June 30, 2017 and June 30, 2016, and the Consolidated Statements of Cash Flows for the six-month periods ended June 30, 2017 and June 30, 2016. Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. 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, 2016. |
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 3,172 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $73,379 under the terms of the Directors’ Stock Purchase Plan in the first six months of 2017. A total of 1,000 shares of common stock were issued upon the exercise of stock options in the first half of 2017. A total of 2,146 shares of common stock were issued to employees for a cash price of $41,564 under the Employee Stock Purchase Plan in the first half of 2017. A total of 4,104 shares of common stock were issued to employees for Restricted Stock Units that vested during the first six months of 2017. |
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 shareholders’ equity. |
Reclassifications | Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2017 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 55,202 $ 38 $ (292 ) $ 54,948 U.S. Treasury 4,097 7 (10 ) 4,094 State and municipal 94,269 1,744 (172 ) 95,841 Mortgage-backed 10,165 37 (84 ) 10,118 Corporate 7,500 22 (14 ) 7,508 Foreign debt 4,512 — (57 ) 4,455 Equity securities 3,083 269 — 3,352 Asset-backed securities 133 — (1 ) 132 Total $ 178,961 $ 2,117 $ (630 ) $ 180,448 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. Government and federal agency $ 59,864 $ 34 $ (846 ) $ 59,052 U.S. Treasury 4,111 — (39 ) 4,072 State and municipal 89,169 748 (944 ) 88,973 Mortgage-backed 7,925 19 (155 ) 7,789 Corporate 7,069 12 (40 ) 7,041 Foreign debt 4,514 — (114 ) 4,400 Equity securities 2,617 266 — 2,883 Asset-backed securities 182 — (4 ) 178 Total $ 175,451 $ 1,079 $ (2,142 ) $ 174,388 |
Schedule of maturities of securities and the weighted average yields of securities | Presented below is a schedule of maturities of securities as of June 30, 2017, the fair value of securities as of June 30, 2017 and December 31, 2016 and the weighted average yields of securities as of June 30, 2017: Securities maturing within: Fair Value Fair Value Less than 1 Year - 5 Years - More than at June 30, at Dec. 31, (Dollars in thousands) 1 Year 5 Years 10 Years 10 Years 2017 2016 U.S. Government and federal agency $ 22,353 $ 30,639 $ 1,956 $ — $ 54,948 $ 59,052 U.S. Treasury notes and bonds — 4,094 — — 4,094 4,072 State and municipal 9,360 47,344 36,353 2,784 95,841 88,973 Corporate 1,800 5,206 502 — 7,508 7,041 Foreign debt securities 999 3,456 — — 4,455 4,400 Asset-backed securities 132 — — — 132 178 Total debt securities 34,644 90,739 38,811 2,784 166,978 163,716 Mortgage-backed securities — 9,435 682 — 10,117 7,789 Equity securities (2) — — 1,001 2,351 3,352 2,883 Total $ 34,644 $ 100,174 $ 40,494 $ 5,135 $ 180,447 $ 174,388 Weighted average yields: Less than 1 Year - 5 Years - More than 1 Year 5 Years 10 Years 10 Years Total U.S. Government and federal agency 1.92 % 1.56 % 1.78 % — % 1.71 % U.S. Treasury notes and bonds — 1.54 — — 1.54 State and municipal (1) 2.93 3.11 3.45 2.00 3.19 Corporate 1.28 2.18 — — 1.82 Foreign debt securities 1.10 1.44 — — 1.37 Asset-backed securities 1.40 — — — 1.40 Mortgage-backed securities — 2.15 2.05 — 2.14 Equity securities (2) — — 4.61 0.96 2.05 (1) The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental tax rate of 34%. (2) Equity securities are preferred and common stock that may or may not have a stated maturity. |
LOANS AND ALLOWANCE FOR LOAN 18
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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: (Dollars in thousands) Agricultural Commercial Consumer Commercial Real Estate Construction Real Estate Residential Unallocated Total Allowance for Loan Losses Beginning balance $ 406 $ 745 $ 286 $ 1,414 $ 23 $ 727 $ 724 $ 4,325 Charge-offs — (352 ) (57 ) — — — — (409 ) Recoveries — — 39 49 40 29 — 157 Provision (11 ) 511 26 88 (39 ) (7 ) (543 ) 25 Ending balance $ 395 $ 904 $ 294 $ 1,551 $ 24 $ 749 $ 181 $ 4,098 Six Months Ended June 30, 2017 Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (362 ) (137 ) — — (34 ) — (533 ) Recoveries — — 91 161 40 37 — 329 Provision (38 ) 578 35 (48 ) (78 ) (268 ) (156 ) 25 Ending balance $ 395 $ 904 $ 294 $ 1,551 $ 24 $ 749 $ 181 $ 4,098 Individually evaluated for impairment $ — $ 27 $ 4 $ 65 $ — $ 271 $ — $ 367 Collectively evaluated for impairment $ 395 $ 877 $ 290 $ 1,486 $ 24 $ 478 $ 181 $ 3,731 Three Months Ended June 30, 2016 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 0 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 0 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 Loans Individually evaluated for impairment $ 442 $ 309 $ 30 $ 887 $ — $ 2,715 $ 4,383 Collectively evaluated for impairment 41,303 101,185 23,373 116,065 5,437 87,702 375,065 Ending balance $ 41,745 $ 101,494 $ 23,403 $ 116,952 $ 5,437 $ 90,417 $ 379,448 December 31, 2016 Individually evaluated for impairment $ 526 $ 301 $ 28 $ 1,073 $ — $ 2,983 $ 4,911 Collectively evaluated for impairment 44,088 95,787 21,568 109,689 6,153 86,804 364,089 Ending balance $ 44,614 $ 96,088 $ 21,596 $ 110,762 $ 6,153 $ 89,787 $ 369,000 |
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, 2017 2016 2017 2016 2017 2016 Risk ratings 1 and 2 $ 11,046 $ 12,005 $ 12,442 $ 12,135 $ 6,741 $ 8,013 Risk rating 3 22,173 23,852 60,843 56,714 69,070 59,343 Risk rating 4 7,715 7,505 27,402 25,895 37,610 39,641 Risk rating 5 369 726 515 1,267 1,904 1,867 Risk rating 6 442 526 292 77 1,627 1,898 Risk rating 7 — — — — — — $ 41,745 $ 44,614 $ 101,494 $ 96,088 $ 116,952 $ 110,762 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, 2017 2016 2017 2016 2017 2016 Performing $ 23,392 $ 21,590 $ 5,437 $ 6,153 $ 89,469 $ 88,767 Nonperforming 6 — — — 504 229 Nonaccrual 5 6 — — 444 791 $ 23,403 $ 21,596 $ 5,437 $ 6,153 $ 90,417 $ 89,787 |
Schedule of troubled debt restructurings | The following schedule provides information on loans that were considered TDRs that were modified during the three and six month periods ended June 30, 2016. There were no loans that were considered TDRs that were modified during the three and six month periods ended June 30, 2017. 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, 2017 and 2016 were as follows: Unpaid (Dollars in thousands) Recorded Principal Related Investment Balance Allowance June 30, 2017 With no related allowance recorded Agricultural $ 442 $ 461 $ — Commercial and industrial 176 176 — Consumer — — — Commercial real estate 97 227 — Residential real estate 173 173 — Subtotal 888 1,037 — With an allowance recorded Agricultural — — — Commercial and industrial 133 374 27 Consumer 30 30 4 Commercial real estate 790 868 65 Residential real estate 2,542 2,564 271 Subtotal 3,495 3,836 367 Total Agricultural 442 461 — Commercial and industrial 309 550 27 Consumer 30 30 4 Commercial real estate 887 1,095 65 Residential real estate 2,715 2,737 271 Total $ 4,383 $ 4,873 $ 367 December 31, 2016 With no related allowance recorded Agricultural $ 482 $ 485 $ — Commercial and industrial 206 207 — Consumer — — — Commercial real estate 342 939 — Residential real estate 301 292 — Subtotal 1,331 1,923 — With an allowance recorded Agricultural 44 44 3 Commercial and industrial 95 95 11 Consumer 28 28 2 Commercial real estate 731 804 91 Residential real estate 2,682 2,711 296 Subtotal 3,580 3,682 403 Total Agricultural 526 529 3 Commercial and industrial 301 302 11 Consumer 28 28 2 Commercial real estate 1,073 1,743 91 Residential real estate 2,983 3,003 296 Total $ 4,911 $ 5,605 $ 403 |
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, 2017 Agricultural $ — $ — $ — $ — $ 41,745 $ 41,745 $ — Commercial and industrial 73 — 235 308 101,186 101,494 — Consumer 30 49 6 85 23,318 23,403 6 Commercial real estate 106 — 24 130 116,822 116,952 — Construction real estate — — — — 5,437 5,437 — Residential real estate 172 579 619 1,370 89,047 90,417 504 $ 381 $ 628 $ 884 $ 1,893 $ 377,555 $ 379,448 $ 510 December 31, 2016 Agricultural $ — $ — $ — $ — $ 44,614 $ 44,614 $ — Commercial and industrial — 30 245 275 95,813 96,088 — Consumer 99 2 6 107 21,489 21,596 — Commercial real estate — — 260 260 110,502 110,762 — Construction real estate — — — — 6,153 6,153 — Residential real estate 1,027 109 646 1,782 88,005 89,787 229 $ 1,126 $ 141 $ 1,157 $ 2,424 $ 366,576 $ 369,000 $ 229 (1) Includes nonaccrual loans. |
Schedule of nonaccrual loans by loan category | Nonaccrual loans by loan category follow: (Dollars in thousands) June 30, December 31, 2017 2016 Agricultural $ 442 $ 482 Commercial and industrial 285 245 Consumer 5 6 Commercial real estate 250 458 Construction real estate — — Residential real estate 443 792 $ 1,425 $ 1,983 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of basic 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, 2017 2016 2017 2016 Basic Earnings Per Share Net income available to common shareholders $ 1,635 $ 1,445 $ 3,081 $ 2,719 Weighted average common shares outstanding 3,449,800 3,464,828 3,446,409 3,462,939 Basic earnings per share $ 0.47 $ 0.41 $ 0.89 $ 0.78 Diluted Earnings Per Share Net income available to common shareholders $ 1,635 $ 1,445 $ 3,081 $ 2,719 Weighted average common shares outstanding 3,449,800 3,464,828 3,446,409 3,462,939 Plus dilutive stock options and restricted stock units 4,049 5,437 3,482 5,550 Weighted average common shares outstanding and potentially dilutive shares 3,453,849 3,470,265 3,449,891 3,468,489 Diluted earnings per share $ 0.47 $ 0.41 $ 0.89 $ 0.78 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, All Other Investments [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, 2017 Assets: Cash and due from banks $ 17,050 $ 17,050 $ 17,050 $ — $ — Securities available for sale 180,448 180,448 1,852 163,738 14,858 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,990 2,051 — — 2,051 Loans to other financial institutions 4,162 4,162 4,162 Loans, net 375,350 382,827 — — 382,827 Liabilities: Noninterest-bearing deposits 133,956 133,956 — 133,956 — Interest-bearing deposits 390,388 389,473 — 389,473 — Repurchase agreements 2,302 2,302 — 2,302 — Federal Home Loan Bank advances 24,284 24,308 — 24,308 — December 31, 2016 Assets: Cash and due from banks $ 14,809 $ 14,809 $ 14,809 $ — $ — Securities available for sale 174,388 174,388 1,383 157,902 15,103 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 1,974 2,044 — 2,044 — Loans, net 364,723 365,780 — — 365,780 Liabilities: Noninterest-bearing deposits 127,611 127,611 — 127,611 — Interest-bearing deposits 384,775 383,879 — 383,879 — Repurchase agreements 7,913 7,913 — 7,913 — Federal Home Loan Bank advances 12,301 12,323 — 12,323 — |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured at fair value on a recurring basis | There were no liabilities measured at fair value as of June 30, 2017 or December 31, 2016. Disclosures concerning assets measured at fair value are as follows: Assets Measured at Fair Value on a Recurring Basis (Dollars in thousands) Quoted Prices Significant Significant Balance at Investment Securities, Available for Sale – June 30, 2017 U.S. Treasury notes and bonds $ — $ 4,094 $ — $ 4,094 U.S. Government and federal agency — 54,948 — 54,948 State and municipal — 82,483 13,358 95,841 Mortgage-backed — 10,118 — 10,118 Corporate — 7,508 — 7,508 Foreign debt — 4,455 — 4,455 Equity securities 1,852 — 1,500 3,352 Asset backed securities — 132 — 132 Total $ 1,852 $ 163,738 $ 14,858 $ 180,448 Investment Securities, Available for Sale - December 31, 2016 U.S. Treasury notes and bonds $ — $ 4,072 $ — $ 4,072 U.S. Government and federal agency — 59,052 — 59,052 State and municipal — 75,370 13,603 88,973 Mortgage-backed — 7,789 — 7,789 Corporate — 7,041 — 7,041 Foreign debt — 4,400 — 4,400 Equity securities 1,383 — 1,500 2,883 Asset backed securities — 178 — 178 Total $ 1,383 $ 157,902 $ 15,103 $ 174,388 |
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) 2017 2016 Investment Securities, Available for Sale Balance, January 1 $ 15,103 $ 11,799 Total realized and unrealized gains included in income — — Total unrealized gains (losses) included in other comprehensive income 162 (187 ) Net purchases, sales, calls, and maturities (407 ) 387 Net transfers into Level 3 — — Balance, June 30 $ 14,858 $ 11,999 |
Schedule of assets measured at fair value on a nonrecurring basis | 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, 2017 $ 4,383 $ — $ — $ 4,383 December 31, 2016 $ 4,911 $ — $ — $ 4,911 Other Real Estate June 30, 2017 $ 472 $ — $ — $ 472 December 31, 2016 $ 437 $ — $ — $ 437 |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)shares | |
Stock Options [Member] | |
Property, Plant and Equipment [Line Items] | |
Shares issued upon exercise of options | 1,000 |
Shares issued during period under Employee Stock Purchase Plan, shares | 2,146 |
Shares issued during period under Employee Stock Purchase Plan, value | $ | $ 41,564 |
Restricted stock [Member] | |
Property, Plant and Equipment [Line Items] | |
Shares issued during period under Employee Stock Purchase Plan, shares | 4,104 |
Vesting period | 3 years |
Directors' Stock Purchase Plan [Member] | |
Property, Plant and Equipment [Line Items] | |
Shares issued during the period, shares | 3,172 |
Shares issued during the period, value | $ | $ 73,379 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 178,961 | $ 175,451 | |
Gross Unrealized Gains | 2,117 | 1,079 | |
Gross Unrealized Losses | (630) | (2,142) | |
Fair Value | 180,448 | 174,388 | |
U.S. Government and Federal Agency [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 55,202 | 59,864 | |
Gross Unrealized Gains | 38 | 34 | |
Gross Unrealized Losses | (292) | (846) | |
Fair Value | 54,948 | 59,052 | |
U.S. Treasury Notes and Bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 4,097 | 4,111 | |
Gross Unrealized Gains | 7 | ||
Gross Unrealized Losses | (10) | (39) | |
Fair Value | 4,094 | 4,072 | |
State and Municipal [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 94,269 | 89,169 | |
Gross Unrealized Gains | 1,744 | 748 | |
Gross Unrealized Losses | (172) | (944) | |
Fair Value | 95,841 | 88,973 | |
Mortgage-backed [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 10,165 | 7,925 | |
Gross Unrealized Gains | 37 | 19 | |
Gross Unrealized Losses | (84) | (155) | |
Fair Value | 10,118 | 7,789 | |
Corporate [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 7,500 | 7,069 | |
Gross Unrealized Gains | 22 | 12 | |
Gross Unrealized Losses | (14) | (40) | |
Fair Value | 7,508 | 7,041 | |
Foreign Debt [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 4,512 | 4,514 | |
Gross Unrealized Losses | (57) | (114) | |
Fair Value | 4,455 | 4,400 | |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 3,083 | 2,617 | |
Gross Unrealized Gains | 269 | 266 | |
Fair Value | 3,352 | [1] | 2,883 |
Asset-backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 133 | 182 | |
Gross Unrealized Losses | (1) | (4) | |
Fair Value | $ 132 | $ 178 | |
[1] | Equity securities are preferred and common stock that may or may not have a stated maturity. |
SECURITIES (Details 1)
SECURITIES (Details 1) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | ||
Securities maturing within: | ||||
Less than 1 Year | $ 34,644 | |||
1 Year - 5 Years | 100,174 | |||
5 Years - 10 Years | 40,494 | |||
More than 10 Years | 5,135 | |||
Fair Value | 180,448 | $ 174,388 | ||
U.S. Government and Federal Agency [Member] | ||||
Securities maturing within: | ||||
Less than 1 Year | 22,353 | |||
1 Year - 5 Years | 30,639 | |||
5 Years - 10 Years | 1,956 | |||
Fair Value | 54,948 | 59,052 | ||
U.S. Treasury Notes and Bonds [Member] | ||||
Securities maturing within: | ||||
1 Year - 5 Years | 4,094 | |||
Fair Value | 4,094 | 4,072 | ||
State and Municipal [Member] | ||||
Securities maturing within: | ||||
Less than 1 Year | 9,360 | |||
1 Year - 5 Years | 47,344 | |||
5 Years - 10 Years | 36,353 | |||
More than 10 Years | 2,784 | |||
Fair Value | 95,841 | 88,973 | ||
Corporate [Member] | ||||
Securities maturing within: | ||||
Less than 1 Year | 1,800 | |||
1 Year - 5 Years | 5,206 | |||
5 Years - 10 Years | 502 | |||
Fair Value | 7,508 | 7,041 | ||
Foreign Debt [Member] | ||||
Securities maturing within: | ||||
Less than 1 Year | 999 | |||
1 Year - 5 Years | 3,456 | |||
Fair Value | 4,455 | 4,400 | ||
Asset-backed Securities [Member] | ||||
Securities maturing within: | ||||
Less than 1 Year | 132 | |||
Fair Value | 132 | 178 | ||
Total Debt Securities [Member] | ||||
Securities maturing within: | ||||
Less than 1 Year | 34,644 | |||
1 Year - 5 Years | 90,739 | |||
5 Years - 10 Years | 38,811 | |||
More than 10 Years | 2,784 | |||
Fair Value | 166,978 | 163,716 | ||
Mortgage-backed [Member] | ||||
Securities maturing within: | ||||
1 Year - 5 Years | 9,435 | |||
5 Years - 10 Years | 682 | |||
Fair Value | 10,118 | 7,789 | ||
Equity Securities [Member] | ||||
Securities maturing within: | ||||
5 Years - 10 Years | [1] | 1,001 | ||
More than 10 Years | [1] | 2,351 | ||
Fair Value | $ 3,352 | [1] | $ 2,883 | |
[1] | Equity securities are preferred and common stock that may or may not have a stated maturity. |
SECURITIES (Details 2)
SECURITIES (Details 2) | Jun. 30, 2017 | |
U.S. Government and Federal Agency [Member] | ||
Weighted average yields: | ||
Less than 1 Year | 1.92% | |
1 Year - 5 Years | 1.56% | |
5 Years - 10 Years | 1.78% | |
Total | 1.71% | |
U.S. Treasury Notes and Bonds [Member] | ||
Weighted average yields: | ||
1 Year - 5 Years | 1.54% | |
Total | 1.54% | |
State and Municipal [Member] | ||
Weighted average yields: | ||
Less than 1 Year | 2.93% | [1] |
1 Year - 5 Years | 3.11% | [1] |
5 Years - 10 Years | 3.45% | [1] |
More than 10 Years | 2.00% | [1] |
Total | 3.19% | [1] |
Corporate [Member] | ||
Weighted average yields: | ||
Less than 1 Year | 1.28% | |
1 Year - 5 Years | 2.18% | |
Total | 1.82% | |
Foreign Debt [Member] | ||
Weighted average yields: | ||
Less than 1 Year | 1.10% | |
1 Year - 5 Years | 1.44% | |
Total | 1.37% | |
Asset-backed Securities [Member] | ||
Weighted average yields: | ||
Less than 1 Year | 1.40% | |
Total | 1.40% | |
Mortgage-backed [Member] | ||
Weighted average yields: | ||
1 Year - 5 Years | 2.15% | |
5 Years - 10 Years | 2.05% | |
Total | 2.14% | |
Equity Securities [Member] | ||
Weighted average yields: | ||
5 Years - 10 Years | 4.61% | [2] |
More than 10 Years | 0.96% | [2] |
Total | 2.05% | [2] |
[1] | The yield is computed for tax-exempt securities on a fully tax-equivalent basis at an incremental tax rate of 34%. | |
[2] | Equity securities are preferred and common stock that may or may not have a stated maturity. |
SECURITIES (Details Narrative)
SECURITIES (Details Narrative) | 6 Months Ended |
Jun. 30, 2017 | |
State and Municipal [Member] | |
Incremental tax rate | 3.40% |
LOANS AND ALLOWANCE FOR LOAN 27
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Allowance for Loan Losses | |||||
Beginning balance | $ 4,325 | $ 4,124 | $ 4,277 | $ 4,194 | |
Charge-offs | (409) | (29) | (533) | (170) | |
Recoveries | 157 | 201 | 329 | 272 | |
Provision | 25 | 0 | 25 | 0 | |
Ending balance | 4,098 | 4,296 | 4,098 | 4,296 | |
Individually evaluated for impairment | 367 | 564 | 367 | 564 | |
Collectively evaluated for impairment | 3,731 | 3,732 | 3,731 | 3,732 | |
Loans | |||||
Individually evaluated for impairment | 4,383 | 4,383 | $ 4,911 | ||
Collectively evaluated for impairment | 375,065 | 375,065 | 364,089 | ||
Loans | 379,448 | 379,448 | 369,000 | ||
Agricultural [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 406 | 382 | 433 | 420 | |
Provision | (11) | 18 | (38) | (20) | |
Ending balance | 395 | 400 | 395 | 400 | |
Individually evaluated for impairment | 11 | 11 | |||
Collectively evaluated for impairment | 395 | 389 | 395 | 389 | |
Loans | |||||
Individually evaluated for impairment | 442 | 442 | 526 | ||
Collectively evaluated for impairment | 41,303 | 41,303 | 44,088 | ||
Loans | 41,745 | 41,745 | 44,614 | ||
Commercial and Industrial [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 745 | 691 | 688 | 586 | |
Charge-offs | (352) | (362) | (33) | ||
Recoveries | 8 | 23 | |||
Provision | 511 | (42) | 578 | 81 | |
Ending balance | 904 | 657 | 904 | 657 | |
Individually evaluated for impairment | 27 | 11 | 27 | 11 | |
Collectively evaluated for impairment | 877 | 646 | 877 | 646 | |
Loans | |||||
Individually evaluated for impairment | 309 | 309 | 301 | ||
Collectively evaluated for impairment | 101,185 | 101,185 | 95,787 | ||
Loans | 101,494 | 101,494 | 96,088 | ||
Consumer [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 286 | 272 | 305 | 297 | |
Charge-offs | (57) | (29) | (137) | (68) | |
Recoveries | 39 | 28 | 91 | 69 | |
Provision | 26 | 6 | 35 | (21) | |
Ending balance | 294 | 277 | 294 | 277 | |
Individually evaluated for impairment | 4 | 1 | 4 | 1 | |
Collectively evaluated for impairment | 290 | 276 | 290 | 276 | |
Loans | |||||
Individually evaluated for impairment | 30 | 30 | 28 | ||
Collectively evaluated for impairment | 23,373 | 23,373 | 21,568 | ||
Loans | 23,403 | 23,403 | 21,596 | ||
Commercial Real Estate [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 1,414 | 1,138 | 1,438 | 1,030 | |
Recoveries | 49 | 23 | 161 | 31 | |
Provision | 88 | (28) | (48) | 72 | |
Ending balance | 1,551 | 1,133 | 1,551 | 1,133 | |
Individually evaluated for impairment | 65 | 177 | 65 | 177 | |
Collectively evaluated for impairment | 1,486 | 956 | 1,486 | 956 | |
Loans | |||||
Individually evaluated for impairment | 887 | 887 | 1,073 | ||
Collectively evaluated for impairment | 116,065 | 116,065 | 109,689 | ||
Loans | 116,952 | 116,952 | 110,762 | ||
Construction Real Estate [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 23 | 43 | 62 | 46 | |
Recoveries | 40 | 40 | |||
Provision | (39) | 2 | (78) | (2) | |
Ending balance | 24 | 45 | 24 | 45 | |
Collectively evaluated for impairment | 24 | 45 | 24 | 45 | |
Loans | |||||
Collectively evaluated for impairment | 5,437 | 5,437 | 6,153 | ||
Loans | 5,437 | 5,437 | 6,153 | ||
Residential Real Estate [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 727 | 1,350 | 1,014 | 1,388 | |
Charge-offs | (34) | (69) | |||
Recoveries | 29 | 142 | 37 | 149 | |
Provision | (7) | (270) | (268) | (246) | |
Ending balance | 749 | 1,222 | 749 | 1,222 | |
Individually evaluated for impairment | 271 | 364 | 271 | 364 | |
Collectively evaluated for impairment | 478 | 858 | 478 | 858 | |
Loans | |||||
Individually evaluated for impairment | 2,715 | 2,715 | 2,983 | ||
Collectively evaluated for impairment | 87,702 | 87,702 | 86,804 | ||
Loans | 90,417 | 90,417 | $ 89,787 | ||
Unallocated [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 724 | 249 | 337 | 427 | |
Provision | (543) | 315 | (156) | 136 | |
Ending balance | 181 | 563 | 181 | 563 | |
Collectively evaluated for impairment | $ 181 | $ 563 | $ 181 | $ 563 |
LOANS AND ALLOWANCE FOR LOAN 28
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 379,448 | $ 369,000 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 41,745 | 44,614 |
Agricultural [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 11,046 | 12,005 |
Agricultural [Member] | Risk rating 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 22,173 | 23,852 |
Agricultural [Member] | Risk rating 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 7,715 | 7,505 |
Agricultural [Member] | Risk rating 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 369 | 726 |
Agricultural [Member] | Risk rating 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 442 | 526 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 101,494 | 96,088 |
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 12,442 | 12,135 |
Commercial and Industrial [Member] | Risk rating 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 60,843 | 56,714 |
Commercial and Industrial [Member] | Risk rating 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 27,402 | 25,895 |
Commercial and Industrial [Member] | Risk rating 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 515 | 1,267 |
Commercial and Industrial [Member] | Risk rating 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 292 | 77 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 116,952 | 110,762 |
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 6,741 | 8,013 |
Commercial Real Estate [Member] | Risk rating 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 69,070 | 59,343 |
Commercial Real Estate [Member] | Risk rating 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 37,610 | 39,641 |
Commercial Real Estate [Member] | Risk rating 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 1,904 | 1,867 |
Commercial Real Estate [Member] | Risk rating 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 1,627 | $ 1,898 |
LOANS AND ALLOWANCE FOR LOAN 29
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 379,448 | $ 369,000 |
Nonaccrual past due loans | 1,425 | 1,983 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 23,403 | 21,596 |
Nonaccrual past due loans | 5 | 6 |
Consumer [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 23,392 | 21,590 |
Consumer [Member] | Nonperforming [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 6 | |
Construction Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 5,437 | 6,153 |
Construction Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 5,437 | 6,153 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 90,417 | 89,787 |
Nonaccrual past due loans | 444 | 791 |
Residential Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 89,469 | 88,767 |
Residential Real Estate [Member] | Nonperforming [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 504 | $ 229 |
LOANS AND ALLOWANCE FOR LOAN 30
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017USD ($) | Jun. 30, 2017USD ($) | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 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 Loans | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 128 | |
Post Modification Oustanding Recorded Investment | $ 128 | |
Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 2 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 150 | $ 179 |
Post Modification Oustanding Recorded Investment | $ 150 | $ 179 |
LOANS AND ALLOWANCE FOR LOAN 31
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | $ 888 | $ 1,331 |
Unpaid Principal Balance with no related allowance recorded | 1,037 | 1,923 |
Recorded Investment with an allowance recorded | 3,495 | 3,580 |
Unpaid Principal Balance with an allowance recorded | 3,836 | 3,682 |
Related Allowance | 367 | 403 |
Recorded Investment | 4,383 | 4,911 |
Unpaid Principal Balance | 4,873 | 5,605 |
Agricultural [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 442 | 482 |
Unpaid Principal Balance with no related allowance recorded | 461 | 485 |
Recorded Investment with an allowance recorded | 44 | |
Unpaid Principal Balance with an allowance recorded | 44 | |
Related Allowance | 3 | |
Recorded Investment | 442 | 526 |
Unpaid Principal Balance | 461 | 529 |
Commercial and Industrial [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 176 | 206 |
Unpaid Principal Balance with no related allowance recorded | 176 | 207 |
Recorded Investment with an allowance recorded | 133 | 95 |
Unpaid Principal Balance with an allowance recorded | 374 | 95 |
Related Allowance | 27 | 11 |
Recorded Investment | 309 | 301 |
Unpaid Principal Balance | 550 | 302 |
Consumer [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with an allowance recorded | 30 | 28 |
Unpaid Principal Balance with an allowance recorded | 30 | 28 |
Related Allowance | 4 | 2 |
Recorded Investment | 30 | 28 |
Unpaid Principal Balance | 30 | 28 |
Commercial Real Estate [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 97 | 342 |
Unpaid Principal Balance with no related allowance recorded | 227 | 939 |
Recorded Investment with an allowance recorded | 790 | 731 |
Unpaid Principal Balance with an allowance recorded | 868 | 804 |
Related Allowance | 65 | 91 |
Recorded Investment | 887 | 1,073 |
Unpaid Principal Balance | 1,095 | 1,743 |
Residential Real Estate [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 173 | 301 |
Unpaid Principal Balance with no related allowance recorded | 173 | 292 |
Recorded Investment with an allowance recorded | 2,542 | 2,682 |
Unpaid Principal Balance with an allowance recorded | 2,564 | 2,711 |
Related Allowance | 271 | 296 |
Recorded Investment | 2,715 | 2,983 |
Unpaid Principal Balance | $ 2,737 | $ 3,003 |
LOANS AND ALLOWANCE FOR LOAN 32
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | $ 1,893 | $ 2,424 | |
Loans Not Past Due | 377,555 | 366,576 | |
Loans | 379,448 | 369,000 | |
Loans 90 Days Past Due and Accruing | 510 | 229 | |
Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 884 | 1,157 |
30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 381 | 1,126 | |
60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 628 | 141 | |
Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Not Past Due | 41,745 | 44,614 | |
Loans | 41,745 | 44,614 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 308 | 275 | |
Loans Not Past Due | 101,186 | 95,813 | |
Loans | 101,494 | 96,088 | |
Commercial and Industrial [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 235 | 245 |
Commercial and Industrial [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 73 | ||
Commercial and Industrial [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 30 | ||
Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 85 | 107 | |
Loans Not Past Due | 23,318 | 21,489 | |
Loans | 23,403 | 21,596 | |
Loans 90 Days Past Due and Accruing | 6 | ||
Consumer [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 6 | 6 |
Consumer [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 30 | 99 | |
Consumer [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 49 | 2 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 130 | 260 | |
Loans Not Past Due | 116,822 | 110,502 | |
Loans | 116,952 | 110,762 | |
Commercial Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 24 | 260 |
Commercial Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 106 | ||
Construction Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Not Past Due | 5,437 | 6,153 | |
Loans | 5,437 | 6,153 | |
Residential Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 1,370 | 1,782 | |
Loans Not Past Due | 89,047 | 88,005 | |
Loans | 90,417 | 89,787 | |
Loans 90 Days Past Due and Accruing | 504 | 229 | |
Residential Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 619 | 646 |
Residential Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 172 | 1,027 | |
Residential Real Estate [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | $ 579 | $ 109 | |
[1] | Includes nonaccrual loans. |
LOANS AND ALLOWANCE FOR LOAN 33
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,425 | $ 1,983 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 442 | 482 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 285 | 245 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 5 | 6 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 250 | 458 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 444 | $ 791 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic Earnings Per Share | ||||
Net income available to common shareholders | $ 1,635 | $ 1,445 | $ 3,081 | $ 2,719 |
Weighted average common shares outstanding | 3,449,800 | 3,464,828 | 3,446,409 | 3,462,939 |
Basic earnings per share | $ 0.47 | $ 0.41 | $ 0.89 | $ 0.78 |
Diluted Earnings Per Share | ||||
Net income available to common shareholders | $ 1,635 | $ 1,445 | $ 3,081 | $ 2,719 |
Weighted average common shares outstanding | 3,449,800 | 3,464,828 | 3,446,409 | 3,462,939 |
Plus dilutive stock options and restricted stock units | 4,049 | 5,437 | 3,482 | 5,550 |
Weighted average common shares outstanding and potentially dilutive shares | 3,453,849 | 3,470,265 | 3,449,891 | 3,468,489 |
Diluted earnings per share | $ 0.47 | $ 0.41 | $ 0.89 | $ 0.78 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Stock dividend declared | 5.00% | |||
Dilutive stock options excluded in calculation of earnings per share | 31,500 | 30,000 | 47,250 | 30,000 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Securities available for sale | $ 180,448 | $ 174,388 |
Loans to other financial institutions | 4,162 | |
Liabilities: | ||
Noninterest-bearing deposits | 133,956 | 127,611 |
Interest-bearing deposits | 390,388 | 384,775 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Cash and due from banks | 17,050 | 14,809 |
Securities available for sale | 1,852 | 1,383 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Securities available for sale | 163,738 | 157,902 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,567 |
Loans held for sale | 2,044 | |
Liabilities: | ||
Noninterest-bearing deposits | 133,956 | 127,611 |
Interest-bearing deposits | 389,473 | 383,879 |
Repurchase agreements | 2,302 | 7,913 |
Federal Home Loan Bank advances | 24,308 | 12,323 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Securities available for sale | 14,858 | 15,103 |
Loans held for sale | 2,051 | |
Loans to other financial institutions | 4,162 | |
Loans, net | 382,827 | 365,780 |
Carrying Amount [Member] | ||
Assets: | ||
Cash and due from banks | 17,050 | 14,809 |
Securities available for sale | 180,448 | 174,388 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,567 |
Loans held for sale | 1,990 | 1,974 |
Loans to other financial institutions | 4,162 | |
Loans, net | 375,350 | 364,723 |
Liabilities: | ||
Noninterest-bearing deposits | 133,956 | 127,611 |
Interest-bearing deposits | 390,388 | 384,775 |
Repurchase agreements | 2,302 | 7,913 |
Federal Home Loan Bank advances | 24,284 | 12,301 |
Estimated Fair Value [Member] | ||
Assets: | ||
Cash and due from banks | 17,050 | 14,809 |
Securities available for sale | 180,448 | 174,388 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,567 |
Loans held for sale | 2,051 | 2,044 |
Loans to other financial institutions | 4,162 | |
Loans, net | 382,827 | 365,780 |
Liabilities: | ||
Noninterest-bearing deposits | 133,956 | 127,611 |
Interest-bearing deposits | 389,473 | 383,879 |
Repurchase agreements | 2,302 | 7,913 |
Federal Home Loan Bank advances | $ 24,308 | $ 12,323 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | $ 180,448 | $ 174,388 | |
Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 3,352 | [1] | 2,883 |
U.S. Treasury Notes and Bonds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 4,094 | 4,072 | |
U.S. Government and Federal Agency [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 54,948 | 59,052 | |
State and Municipal [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 95,841 | 88,973 | |
Mortgage-backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 10,118 | 7,789 | |
Corporate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 7,508 | 7,041 | |
Foreign Debt [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 4,455 | 4,400 | |
Asset-backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 132 | 178 | |
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 | 1,852 | 1,383 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 163,738 | 157,902 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 14,858 | 15,103 | |
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 | 180,448 | 174,388 | |
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 | 3,352 | 2,883 | |
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 | 4,094 | 4,072 | |
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 | 54,948 | 59,052 | |
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 | 95,841 | 88,973 | |
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 | 10,118 | 7,789 | |
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 | 7,508 | 7,041 | |
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 | 4,455 | 4,400 | |
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 | 132 | 178 | |
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 | 1,852 | 1,383 | |
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 | 1,852 | 1,383 | |
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 | 163,738 | 157,902 | |
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 | 4,094 | 4,072 | |
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 | 54,948 | 59,052 | |
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 | 82,483 | 75,370 | |
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 | 10,118 | 7,789 | |
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 | 7,508 | 7,041 | |
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 | 4,455 | 4,400 | |
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 | 132 | 178 | |
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 | 14,858 | 15,103 | |
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 | $ 13,358 | $ 13,603 | |
[1] | Equity securities are preferred and common stock that may or may not have a stated maturity. |
FAIR VALUE MEASUREMENTS (Deta38
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
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 | $ 162 | $ 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 year | 15,103 | 11,799 |
Total unrealized gains (losses) included in other comprehensive income | 162 | (187) |
Net purchases, sales, calls, and maturities | (407) | 387 |
Balance at the end of year | $ 14,858 | $ 11,999 |
FAIR VALUE MEASUREMENTS (Deta39
FAIR VALUE MEASUREMENTS (Details 2) - Fair Value measured on a Non-Recurring Basis [Member] - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | $ 4,383 | $ 4,911 |
Other real estate owned, net | 472 | 437 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 4,383 | 4,911 |
Other real estate owned, net | $ 472 | $ 437 |
FAIR VALUE MEASUREMENTS (Deta40
FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | ||
Total unrealized gains (losses) included in other comprehensive income | $ 162 | $ 187 |
Purchased during period | 0 | 750 |
Securities matured or were called | 401 | 182 |
Principal paydowns | $ 6 | $ 181 |