Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 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 | Sep. 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 | 3,451,987 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 12,725 | $ 14,809 |
Securities available for sale (Note 2) | 173,306 | 174,388 |
Federal Home Loan Bank stock | 1,994 | 1,994 |
Federal Reserve Bank stock | 1,573 | 1,573 |
Loans held for sale | 2,378 | 1,974 |
Loans to other financial institutions | 13,293 | |
Loans (Note 3) | 394,090 | 369,000 |
Allowance for loan losses (Note 3) | (4,216) | (4,277) |
Loans, net | 389,874 | 364,723 |
Premises and equipment, net | 12,271 | 12,588 |
Cash surrender value of life insurance policies | 14,415 | 14,117 |
Goodwill | 13,728 | 13,728 |
Other assets | 6,495 | 7,477 |
Total assets | 642,052 | 607,371 |
Liabilities | ||
Deposits - noninterest-bearing | 136,542 | 127,611 |
Deposits - interest-bearing | 389,296 | 384,775 |
Total deposits | 525,838 | 512,386 |
Federal funds purchased | 2,650 | |
Repurchase agreements | 3,794 | 7,913 |
Advances from Federal Home Loan Bank | 30,276 | 12,301 |
Other liabilities | 3,188 | 3,073 |
Total liabilities | 565,746 | 535,673 |
Shareholders' Equity | ||
Common stock and paid in capital, no par value; shares authorized: 7,000,000; shares outstanding: 3,451,445 at September 30, 2017 and 3,277,944 at December 31, 2016 | 50,307 | 46,299 |
Retained earnings | 25,281 | 25,997 |
Accumulated other comprehensive income (loss), net | 718 | (598) |
Total shareholders' equity | 76,306 | 71,698 |
Total liabilities and shareholders' equity | $ 642,052 | $ 607,371 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 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 | 3,451,445 | 3,277,944 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Interest income | |||||
Loans, including fees | $ 4,592 | $ 4,210 | $ 13,157 | $ 12,293 | |
Securities: | |||||
Taxable | 651 | 594 | 1,935 | 1,731 | |
Tax exempt | 355 | 358 | 1,068 | 1,088 | |
Other | 26 | 5 | 50 | 14 | |
Total interest income | 5,624 | 5,167 | 16,210 | 15,126 | |
Interest expense | |||||
Deposits | 320 | 190 | 860 | 599 | |
Advances from Federal Home Loan Bank | 62 | 44 | 169 | 119 | |
Other | 3 | 2 | 10 | 7 | |
Total interest expense | 385 | 236 | 1,039 | 725 | |
Net interest income | 5,239 | 4,931 | 15,171 | 14,401 | |
Provision for loan losses | 95 | 120 | |||
Net interest income after provision for loan losses | 5,144 | 4,931 | 15,051 | 14,401 | |
Noninterest income | |||||
Customer service charges | 1,058 | 1,030 | 3,081 | 3,020 | |
Insurance and investment commissions | 260 | 290 | 760 | 740 | |
Gains on sales of loans | 355 | 508 | 920 | 1,345 | |
Gains on sales of securities | 51 | 28 | 177 | 255 | |
(Losses) gains on sales and write-downs of other assets | 17 | (3) | 21 | (26) | |
Earnings on life insurance policies | 101 | 88 | 299 | 265 | |
Other | 141 | 124 | 399 | 360 | |
Total noninterest income | 1,983 | 2,065 | 5,657 | 5,959 | |
Noninterest expense | |||||
Salaries and benefits | 2,619 | 2,542 | 7,725 | 7,519 | |
Occupancy and equipment | 702 | 626 | 2,099 | 1,959 | |
Data processing | 551 | 556 | 1,681 | 1,654 | |
Professional fees | 287 | 232 | 778 | 700 | |
Supplies and postage | 102 | 92 | 293 | 312 | |
Advertising and promotional | 58 | 52 | 185 | 184 | |
Intangible amortization | 112 | 336 | |||
FDIC insurance | 51 | 78 | 151 | 218 | |
Other | 421 | 379 | 1,327 | 1,485 | |
Total noninterest expense | 4,791 | 4,669 | 14,239 | 14,367 | |
Income before income tax | 2,336 | 2,327 | 6,470 | 5,993 | |
Income tax expense | 616 | 644 | 1,668 | 1,591 | |
Net income | $ 1,720 | $ 1,683 | $ 4,801 | $ 4,402 | |
Basic earnings per share (Note 4) (in dollars per share) | [1] | $ 0.50 | $ 0.50 | $ 1.39 | $ 1.28 |
Diluted earnings per share (Note 4) (in dollars per share) | [1] | 0.50 | 0.50 | 1.39 | 1.28 |
Dividends declared per share (in dollars per share) | [1] | $ 0.17 | $ 0.16 | $ 0.50 | $ 0.49 |
[1] | Note that 2016 per-share amounts have been adjusted for the 5% stock dividend paid on May 31, 2017. |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) | 9 Months Ended |
Sep. 30, 2017 | |
Income Statement [Abstract] | |
Stock dividend paid | 5.00% |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,720 | $ 1,683 | $ 4,801 | $ 4,402 |
Other comprehensive income: | ||||
Changes in net unrealized gains (loss) on investment securities available for sale, net of tax expense of $(171) and $35 for the three months ended September 30, 2017 and September 30, 2016 respectively. Changes in net unrealized gains on investment securities available for sale, net of tax expense of $738 and $747 for the nine months ended September 30, 2017 and September 30, 2016 respectively. | (333) | 68 | 1,433 | 1,450 |
Less: Reclassification adjustment for realized gain on sale of investment securities available for sale included in net income, net of tax benefit of $17 and $9 for the three months ended September 30, 2017 and September 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 $60 and $87 for the nine months ended September 30, 2017 and September 30, 2016 respectively. | (34) | (19) | (117) | (168) |
Other comprehensive income, net of tax | (367) | 49 | 1,316 | 1,282 |
Comprehensive income | $ 1,353 | $ 1,732 | $ 6,117 | $ 5,684 |
CONSOLIDATED STATEMENTS OF COM7
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized holding gains on available for sale securities, tax expense (benefit) | $ (171) | $ 35 | $ 738 | $ 747 |
Reclassification adjustment for gain recognized in net income, tax expense (benefit) | $ 17 | $ 9 | $ 60 | $ 87 |
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 | 4,402 | 4,402 | |||
Other comprehensive income | 1,282 | 1,282 | |||
Shares issued | $ 137 | 137 | |||
Shares issued (in shares) | 11,559 | ||||
Shares repurchased | $ (794) | (794) | |||
Shares repurchased (in shares) | (35,000) | ||||
Change in ESOP repurchase obligation | $ 127 | 127 | |||
Effect of employee stock purchases | 9 | 9 | |||
Stock-based compensation expense | $ 248 | 248 | |||
Stock-based compensation expense (in shares) | 3,414 | ||||
Cash dividends declared ($0.50 and $0.49 per share for the nine months ended September 30, 2017 and September 30, 2016 respectively) | [1] | (1,674) | (1,674) | ||
Balance, ending at Sep. 30, 2016 | $ 46,228 | 24,866 | 2,485 | 73,579 | |
Balance, ending (in shares) at Sep. 30, 2016 | 3,275,201 | ||||
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 | 4,801 | $ 4,801 | |||
Other comprehensive income | 1,316 | 1,316 | |||
Shares issued | $ 115 | 115 | |||
Shares issued (in shares) | 7,115 | ||||
Shares repurchased | $ (88) | (88) | |||
Shares repurchased (in shares) | (3,800) | ||||
Effect of employee stock purchases | $ 9 | 9 | |||
Stock-based compensation expense | 180 | 180 | |||
Stock options exercised | $ 13 | 13 | |||
Stock options exercised (in shares) | 1,000 | ||||
Restricted stock units issued (in shares) | 5,197 | ||||
Stock dividend declared (5%) | $ 3,779 | (3,779) | |||
Stock dividend declared (5%) (in shares) | 163,989 | ||||
Cash dividends declared ($0.50 and $0.49 per share for the nine months ended September 30, 2017 and September 30, 2016 respectively) | (1,738) | (1,738) | |||
Balance, ending at Sep. 30, 2017 | $ 50,307 | $ 25,281 | $ 718 | $ 76,306 | |
Balance, ending (in shares) at Sep. 30, 2017 | 3,451,445 | 3,451,445 | |||
[1] | Note that 2016 per-share amounts have been adjusted for the 5% stock dividend paid on May 31, 2017. |
CONSOLIDATED STATEMENTS OF CHA9
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) | 9 Months Ended | |
Sep. 30, 2017$ / shares | ||
Statement of Stockholders' Equity [Abstract] | ||
Cash dividend declared, per share | $ 0.50 | [1] |
Stock dividend declared | 5.00% | |
Stock dividend paid | 5.00% | |
[1] | Note that 2016 per-share amounts have been adjusted for the 5% stock dividend paid on May 31, 2017. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 4,801 | $ 4,402 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for loan losses | 120 | |
Depreciation | 944 | 757 |
Amortization | 814 | 1,199 |
Compensation expense on stock purchases and restricted stock units | 241 | 257 |
Gains on sales of securities | (177) | (255) |
Gains on sales of loans | (920) | (1,345) |
Loans originated for sale | (28,356) | (39,173) |
Proceeds from loan sales | 27,922 | 42,313 |
Earnings on bank-owned life insurance | (299) | (265) |
Gains on sales of other real estate owned | (10) | 3 |
Proceeds from sales of other real estate owned | 579 | 28 |
Deferred federal income tax benefit | (29) | (86) |
Net changes in other assets | 572 | (135) |
Net changes in other liabilities | (532) | 481 |
Net cash from operating activities | 5,670 | 8,181 |
Securities available for sale: | ||
Sales | 22,521 | 14,538 |
Maturities, prepayments and calls | 14,163 | 33,412 |
Purchases | (33,998) | (63,780) |
Loan originations and payments, net | (38,235) | (13,700) |
Additions to premises and equipment | (413) | (1,112) |
Net cash from investing activities | (35,962) | (30,642) |
Cash flows from financing activities: | ||
Net change in deposits | 13,452 | 2,691 |
Net change in repurchase agreements | (4,119) | (3,043) |
Net change in federal funds purchased | 2,650 | 624 |
Proceeds from Federal Home Loan Bank advances | 166,500 | 271,000 |
Payments on Federal Home Loan Bank advances | (148,525) | (245,023) |
Issuance of common stock | 76 | 137 |
Repurchase of common stock | (88) | (794) |
Cash dividends | (1,738) | (1,674) |
Net cash from financing activities | 28,208 | 23,918 |
Net change in cash and cash equivalents | (2,084) | 1,457 |
Beginning cash and cash equivalents | 14,809 | 11,187 |
Ending cash and cash equivalents | 12,725 | 12,644 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 1,029 | 726 |
Cash paid for taxes | 1,150 | 925 |
Loans transferred to other real estate owned | $ 314 | $ 483 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 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 U.S. 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 September 30, 2017 and December 31, 2016, the Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2017 and September 30, 2016, the Consolidated Statements of Comprehensive Income for the three- and nine-month periods ended September 30, 2017 and September 30, 2016, the Consolidated Statements of Changes in Shareholders’ Equity for the nine-month periods ended September 30, 2017 and September 30, 2016, and the Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2017 and September 30, 2016. Operating results for the nine months ended September 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 3,881 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $89,000 under the terms of the Directors’ Stock Purchase Plan in the first nine months of 2017. A total of 1,000 shares of common stock were issued upon the exercise of stock options in the first three quarters of 2017. A total of 3,234 shares of common stock were issued to employees for a cash price of $62,000 under the Employee Stock Purchase Plan in the first nine months of 2017. A total of 5,197 shares of common stock were issued to employees for Restricted Stock Units that vested during the first nine 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. Revenue Recognition The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 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: September 30, 2017 (Dollars in thousands) Amortized Gross Gross Fair U.S. Government and federal agency $ 51,086 $ 11 $ (444 ) $ 50,653 U.S. Treasury 4,025 — (10 ) 4,015 State and municipal 94,360 1,459 (224 ) 95,595 Mortgage-backed 9,501 17 (98 ) 9,420 Corporate 5,696 16 (17 ) 5,695 Foreign debt 4,512 — (72 ) 4,440 Equity securities 3,083 294 — 3,377 Asset-backed securities 112 — (1 ) 111 Total $ 172,375 $ 1,797 $ (866 ) $ 173,306 December 31, 2016 Amortized Gross Gross Fair 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 nine months ended September 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 September 30, 2017, the fair value of securities as of September 30, 2017 and December 31, 2016, and the weighted average yields of securities as of September 30, 2017: Securities maturing within: (Dollars in thousands) Less than 1 Year 1 Year - 5 Years 5 Years - 10 Years More than 10 Years Fair Value at September 30, 2017 Fair Value at Dec. 31, 2016 U.S. Government and federal agency $ 20,250 $ 28,460 $ 1,943 $ — $ 50,653 $ 59,052 U.S. Treasury notes and bonds — 4,015 — — 4,015 4,072 State and municipal 8,362 47,395 36,016 3,822 95,595 88,973 Corporate 5,302 393 — — 5,695 7,041 Foreign debt securities 1,000 3,440 — — 4,440 4,400 Asset-backed securities 111 — — — 111 178 Total debt securities 35,025 83,703 37,959 3,822 160,509 163,716 Mortgage-backed securities — 9,330 90 — 9,420 7,789 Equity securities (1) — — 1,000 2,377 3,377 2,883 Total $ 35,025 $ 93,033 $ 39,049 $ 6,199 $ 173,306 $ 174,388 (1) 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 | 9 Months Ended |
Sep. 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 Construction Residential Unallocated Total Allowance for Loan Losses Three Months Ended September 30, 2017 Beginning balance $ 395 $ 904 $ 294 $ 1,551 $ 25 $ 748 $ 181 $ 4,098 Charge-offs — (12 ) (52 ) — — (9 ) — (73 ) Recoveries — 4 16 65 — 11 — 96 Provision (1 ) (98 ) 1 (152 ) 1 (140 ) 484 95 Ending balance $ 394 $ 798 $ 259 $ 1,464 $ 26 $ 610 $ 665 $ 4,216 Nine Months Ended September 30, 2017 Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (374 ) (189 ) — — (44 ) — (607 ) Recoveries — 4 107 226 40 49 — 426 Provision (39 ) 480 36 (200 ) (76 ) (409 ) 328 120 Ending balance $ 394 $ 798 $ 259 $ 1,464 $ 26 $ 610 $ 665 $ 4,216 Individually evaluated for impairment $ — $ 5 $ 4 $ 54 $ — $ 228 $ — $ 291 Collectively evaluated for impairment $ 394 $ 793 $ 255 $ 1,410 $ 26 $ 382 $ 665 $ 3,925 Three Months Ended September 30, 2016 Beginning balance $ 399 $ 656 $ 279 $ 1,133 $ 44 $ 1,222 $ 563 $ 4,296 Charge-offs — — (68 ) — — (25 ) — (93 ) Recoveries — 8 49 5 — 11 — 73 Provision (11 ) (55 ) 30 340 (3 ) (205 ) (96 ) — Ending balance $ 388 $ 609 $ 290 $ 1,478 $ 41 $ 1,003 $ 467 $ 4,276 Nine Months Ended September 30, 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (33 ) (136 ) — — (94 ) — (263 ) Recoveries — 31 119 35 — 160 — 345 Provision (32 ) 26 10 412 (5 ) (451 ) 40 — Ending balance $ 388 $ 610 $ 290 $ 1,477 $ 41 $ 1,003 $ 467 $ 4,276 Individually evaluated for impairment $ 4 $ 8 $ 1 $ 167 $ — $ 321 $ — $ 501 Collectively evaluated for impairment $ 384 $ 602 $ 289 $ 1,310 $ 41 $ 682 $ 467 $ 3,775 Loans September 30, 2017 Individually evaluated for impairment $ 424 $ 192 $ 34 $ 936 $ — $ 2,472 $ 4,058 Collectively evaluated for Impairment 45,682 101,244 23,977 122,480 7,298 89,351 390,032 Ending balance $ 46,106 $ 101,436 $ 24,011 $ 123,416 $ 7,298 $ 91,823 $ 394,090 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) September 30, December 31, September 30, December 31, September 30, December 31, 2017 2016 2017 2016 2017 2016 Risk ratings 1 and 2 $ 12,488 $ 12,005 $ 12,691 $ 12,135 $ 8,069 $ 8,013 Risk rating 3 23,957 23,852 64,953 56,714 72,370 59,343 Risk rating 4 8,865 7,505 23,141 25,895 39,920 39,641 Risk rating 5 373 726 484 1,267 1,530 1,867 Risk rating 6 423 526 167 77 1,527 1,898 Risk rating 7 — — — — — — $ 46,106 $ 44,614 $ 101,436 $ 96,088 $ 123,416 $ 110,762 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, 2017 2016 2017 2016 2017 2016 Performing $ 23,995 $ 21,590 $ 7,298 $ 6,153 $ 91,252 $ 88,767 Nonperforming — — — — 132 229 Nonaccrual 16 6 — — 439 791 $ 24,011 $ 21,596 $ 7,298 $ 6,153 $ 91,823 $ 89,787 There were no loans that were considered troubled debt restructurings (“TDRs”) that were modified during the three- and nine-month periods ended September 30, 2017. The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2016: Three Months Ended September 30, 2016 Nine Months Ended September 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 $ 113 $ 113 Residential Real Estate — — — 2 156 156 Total — $ — $ — 3 $ 269 $ 269 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. There were no TDRs as of September 30, 2017 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2017 that had been modified during the year prior to the default. The following schedule provides information on TDRs as of September 30, 2016 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2016 that had been modified during the year prior to the default: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial real estate — $ — 1 $ 113 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 September 30, 2017 and 2016 were as follows: Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized September 30, 2017 With no related allowance recorded Agricultural $ 424 $ 455 $ — $ 288 $ — Commercial and industrial 58 69 — 137 — Consumer — — — — — Commercial real estate 113 245 — 104 — Residential real estate 136 147 — 103 — Subtotal 731 916 — 632 — With an allowance recorded Agricultural — — — 161 — Commercial and industrial 134 134 5 195 1 Consumer 34 35 4 33 1 Commercial real estate 823 904 54 884 26 Residential real estate 2,336 2,354 228 2,475 75 Subtotal 3,327 3,427 291 3,748 103 Agricultural 424 455 — 449 — Commercial and industrial 192 203 5 332 1 Consumer 34 35 4 33 1 Commercial real estate 936 1,149 54 988 26 Residential real estate 2,472 2,501 228 2,578 75 Total $ 4,058 $ 4,343 $ 291 $ 4,380 $ 103 September 30, 2016 With no related allowance recorded Agricultural $ 489 $ 493 $ — $ 154 $ (1 ) Commercial and industrial 177 177 — 63 — Consumer 5 5 — 1 — Commercial real estate 230 351 — 1,071 33 Residential real estate 266 266 — 134 46 Subtotal 1,167 1,292 — 1,423 78 With an allowance recorded Agricultural 45 45 4 79 16 Commercial and industrial 273 247 8 242 4 Consumer 21 21 1 22 3 Commercial real estate 1,229 1,799 167 1,426 116 Residential real estate 2,843 2,859 321 2,670 308 Subtotal 4,411 4,971 501 4,439 447 Agricultural 534 538 4 233 15 Commercial and industrial 449 424 8 305 4 Consumer 26 26 1 23 3 Commercial real estate 1,459 2,150 167 2,497 149 Residential real estate 3,110 3,125 321 2,804 354 Total $ 5,578 $ 6,263 $ 501 $ 5,862 $ 525 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 September 30, 2017 Agricultural $ — $ — $ 83 $ 83 $ 46,023 $ 46,106 $ — Commercial and industrial — — 58 58 101,378 101,436 — Consumer 132 1 11 144 23,867 24,011 — Commercial real estate — — 113 113 123,303 123,416 — Construction real estate — — — — 7,298 7,298 — Residential real estate 625 24 221 870 90,953 91,823 132 $ 757 $ 25 $ 486 $ 1,268 $ 392,822 $ 394,090 $ 132 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) September 30, December 31, 2017 2016 Agricultural $ 423 $ 482 Commercial and industrial 59 245 Consumer 17 6 Commercial real estate 211 458 Construction real estate — — Residential real estate 439 792 $ 1,149 $ 1,983 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 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: (Dollars in thousands, except per share data) Three Months Ended Nine Months Ended 2017 2016 2017 2016 Basic Earnings Per Share Net income available to common shareholders $ 1,720 $ 1,683 $ 4,801 $ 4,402 Weighted average common shares outstanding 3,452,278 3,439,633 3,448,341 3,455,141 Basic earnings per share $ 0.50 $ 0.50 $ 1.39 $ 1.28 Diluted Earnings Per Share Net income available to common shareholders $ 1,720 $ 1,683 $ 4,801 $ 4,402 Weighted average common shares outstanding 3,452,278 3,439,633 3,448,341 3,455,141 Plus dilutive stock options and restricted stock units 6,370 4,146 4,744 4,380 Weighted average common shares outstanding and potentially dilutive shares 3,458,648 3,443,780 3,453,085 3,459,520 Diluted earnings per share $ 0.50 $ 0.50 $ 1.39 $ 1.28 Note that 2016 share amounts have been adjusted for the 5% stock dividend paid on May 31, 2017. There were 31,500 stock options for the three months ended September 30, 2017 and 32,550 for the three months ended September 30, 2016 with an exercise price more than the average market price which have been excluded from the calculation of diluted earnings above. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | NOTE 5 – FINANCIAL INSTRUMENTS Financial instruments as of the dates indicated were as follows: (Dollars in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2017 Assets: Cash and due from banks $ 12,725 $ 12,725 $ 12,725 $ — $ — Securities available for sale 173,306 173,306 1,877 157,886 13,543 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 2,378 2,451 — 2,451 — Loans to other financial institutions 13,293 13,699 — — 13,699 Loans, net 389,874 391,408 — — 391,408 Liabilities: Noninterest-bearing deposits 136,542 136,542 — 136,542 — Interest-bearing deposits 389,296 388,603 — 388,603 — Federal funds purchased 2,650 2,650 — 2,650 — Repurchase agreements 3,794 3,794 — 3,794 — Federal Home Loan Bank advances 30,276 30,298 — 30,298 — 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 September 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 September 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 | 9 Months Ended |
Sep. 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 September 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 in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Date Indicated Investment Securities, Available for Sale – September 30, 2017 U.S. Treasury notes and bonds $ — $ 4,015 $ — $ 4,015 U.S. Government and federal agency — 50,653 — 50,653 State and municipal — 83,552 12,043 95,595 Mortgage-backed — 9,420 — 9,420 Corporate — 5,695 — 5,695 Foreign debt — 4,440 — 4,440 Equity securities 1,877 — 1,500 3,377 Asset backed securities — 111 — 111 Total $ 1,877 $ 157,886 $ 13,543 $ 173,306 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 271 131 Net purchases, sales, calls, and maturities (1,831 ) 2,598 Net transfers into Level 3 — — Balance, September 30 $ 13,543 $ 14,528 Of the Level 3 assets that were held by the Bank at September 30, 2017, the net unrealized gain for the nine months ended September 30, 2017 was $271,000, which is recognized in other comprehensive income in the consolidated balance sheet . . Both observable and unobservable inputs may be used to determine the fair value of positions classified as Level 3 investment securities and liabilities. As a result, the unrealized gains and losses for these assets and liabilities presented in the tables above may include changes in fair value that were attributable to both observable and unobservable inputs. Available for sale investment securities categorized as Level 3 assets primarily consist of bonds issued by local municipalities. The Bank estimates the fair value of these bonds based on the present value of expected future cash flows using management’s best estimate of key assumptions, including forecasted interest yield and payment rates, credit quality and a discount rate commensurate with the current market and other risks involved. The Bank also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets are not normally measured at fair value, but can be subject to fair value adjustments in certain circumstances, such as impairment. Disclosures concerning assets measured at fair value on a non-recurring basis are as follows: Assets Measured at Fair Value on a Non-recurring Basis (Dollars in thousands) Balance at Dates Indicated Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans September 30, 2017 $ 4,058 $ — $ — $ 4,058 December 31, 2016 $ 4,911 $ — $ — $ 4,911 Other Real Estate September 30, 2017 $ 182 $ — $ — $ 182 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. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events | |
SUBSEQUENT EVENTS | NOTE 7 – SUBSEQUENT EVENTS On October 3, 2017 ChoiceOne Insurance Agencies Inc (“the Agency”) entered into an agreement with Ridgetown Investments LLC (“Ridgetown”), to sell a portion of the investment book of business previously managed by the Agency. Per the agreement, Ridgetown agreed to pay $908,000 to the Agency for future revenue generated by the book of business. This transaction would result in a $908,000 gain which will be reported in the fourth quarter of 2017. |
SUMMARY OF SIGNIFICANT ACCOUN18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 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 U.S. 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 September 30, 2017 and December 31, 2016, the Consolidated Statements of Income for the three- and nine-month periods ended September 30, 2017 and September 30, 2016, the Consolidated Statements of Comprehensive Income for the three- and nine-month periods ended September 30, 2017 and September 30, 2016, the Consolidated Statements of Changes in Shareholders’ Equity for the nine-month periods ended September 30, 2017 and September 30, 2016, and the Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2017 and September 30, 2016. Operating results for the nine months ended September 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 3,881 shares of common stock were issued to ChoiceOne’s Board of Directors for a cash price of $89,000 under the terms of the Directors’ Stock Purchase Plan in the first nine months of 2017. A total of 1,000 shares of common stock were issued upon the exercise of stock options in the first three quarters of 2017. A total of 3,234 shares of common stock were issued to employees for a cash price of $62,000 under the Employee Stock Purchase Plan in the first nine months of 2017. A total of 5,197 shares of common stock were issued to employees for Restricted Stock Units that vested during the first nine 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. |
Revenue Recognition | Revenue Recognition The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) |
Reclassifications | Reclassifications Certain amounts presented in prior periods have been reclassified to conform to the current presentation. |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 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: September 30, 2017 (Dollars in thousands) Amortized Gross Gross Fair U.S. Government and federal agency $ 51,086 $ 11 $ (444 ) $ 50,653 U.S. Treasury 4,025 — (10 ) 4,015 State and municipal 94,360 1,459 (224 ) 95,595 Mortgage-backed 9,501 17 (98 ) 9,420 Corporate 5,696 16 (17 ) 5,695 Foreign debt 4,512 — (72 ) 4,440 Equity securities 3,083 294 — 3,377 Asset-backed securities 112 — (1 ) 111 Total $ 172,375 $ 1,797 $ (866 ) $ 173,306 December 31, 2016 Amortized Gross Gross Fair 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 September 30, 2017, the fair value of securities as of September 30, 2017 and December 31, 2016, and the weighted average yields of securities as of September 30, 2017: Securities maturing within: (Dollars in thousands) Less than 1 Year 1 Year - 5 Years 5 Years - 10 Years More than 10 Years Fair Value at September 30, 2017 Fair Value at Dec. 31, 2016 U.S. Government and federal agency $ 20,250 $ 28,460 $ 1,943 $ — $ 50,653 $ 59,052 U.S. Treasury notes and bonds — 4,015 — — 4,015 4,072 State and municipal 8,362 47,395 36,016 3,822 95,595 88,973 Corporate 5,302 393 — — 5,695 7,041 Foreign debt securities 1,000 3,440 — — 4,440 4,400 Asset-backed securities 111 — — — 111 178 Total debt securities 35,025 83,703 37,959 3,822 160,509 163,716 Mortgage-backed securities — 9,330 90 — 9,420 7,789 Equity securities (1) — — 1,000 2,377 3,377 2,883 Total $ 35,025 $ 93,033 $ 39,049 $ 6,199 $ 173,306 $ 174,388 (1) Equity securities are preferred and common stock that may or may not have a stated maturity. |
LOANS AND ALLOWANCE FOR LOAN 20
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 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 Construction Residential Unallocated Total Allowance for Loan Losses Three Months Ended September 30, 2017 Beginning balance $ 395 $ 904 $ 294 $ 1,551 $ 25 $ 748 $ 181 $ 4,098 Charge-offs — (12 ) (52 ) — — (9 ) — (73 ) Recoveries — 4 16 65 — 11 — 96 Provision (1 ) (98 ) 1 (152 ) 1 (140 ) 484 95 Ending balance $ 394 $ 798 $ 259 $ 1,464 $ 26 $ 610 $ 665 $ 4,216 Nine Months Ended September 30, 2017 Beginning balance $ 433 $ 688 $ 305 $ 1,438 $ 62 $ 1,014 $ 337 $ 4,277 Charge-offs — (374 ) (189 ) — — (44 ) — (607 ) Recoveries — 4 107 226 40 49 — 426 Provision (39 ) 480 36 (200 ) (76 ) (409 ) 328 120 Ending balance $ 394 $ 798 $ 259 $ 1,464 $ 26 $ 610 $ 665 $ 4,216 Individually evaluated for impairment $ — $ 5 $ 4 $ 54 $ — $ 228 $ — $ 291 Collectively evaluated for impairment $ 394 $ 793 $ 255 $ 1,410 $ 26 $ 382 $ 665 $ 3,925 Three Months Ended September 30, 2016 Beginning balance $ 399 $ 656 $ 279 $ 1,133 $ 44 $ 1,222 $ 563 $ 4,296 Charge-offs — — (68 ) — — (25 ) — (93 ) Recoveries — 8 49 5 — 11 — 73 Provision (11 ) (55 ) 30 340 (3 ) (205 ) (96 ) — Ending balance $ 388 $ 609 $ 290 $ 1,478 $ 41 $ 1,003 $ 467 $ 4,276 Nine Months Ended September 30, 2016 Beginning balance $ 420 $ 586 $ 297 $ 1,030 $ 46 $ 1,388 $ 427 $ 4,194 Charge-offs — (33 ) (136 ) — — (94 ) — (263 ) Recoveries — 31 119 35 — 160 — 345 Provision (32 ) 26 10 412 (5 ) (451 ) 40 — Ending balance $ 388 $ 610 $ 290 $ 1,477 $ 41 $ 1,003 $ 467 $ 4,276 Individually evaluated for impairment $ 4 $ 8 $ 1 $ 167 $ — $ 321 $ — $ 501 Collectively evaluated for impairment $ 384 $ 602 $ 289 $ 1,310 $ 41 $ 682 $ 467 $ 3,775 Loans September 30, 2017 Individually evaluated for impairment $ 424 $ 192 $ 34 $ 936 $ — $ 2,472 $ 4,058 Collectively evaluated for Impairment 45,682 101,244 23,977 122,480 7,298 89,351 390,032 Ending balance $ 46,106 $ 101,436 $ 24,011 $ 123,416 $ 7,298 $ 91,823 $ 394,090 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) September 30, December 31, September 30, December 31, September 30, December 31, 2017 2016 2017 2016 2017 2016 Risk ratings 1 and 2 $ 12,488 $ 12,005 $ 12,691 $ 12,135 $ 8,069 $ 8,013 Risk rating 3 23,957 23,852 64,953 56,714 72,370 59,343 Risk rating 4 8,865 7,505 23,141 25,895 39,920 39,641 Risk rating 5 373 726 484 1,267 1,530 1,867 Risk rating 6 423 526 167 77 1,527 1,898 Risk rating 7 — — — — — — $ 46,106 $ 44,614 $ 101,436 $ 96,088 $ 123,416 $ 110,762 Corporate Credit Exposure - Credit Risk Profile Based On Payment Activity Consumer Construction Real Estate Residential Real Estate (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, 2017 2016 2017 2016 2017 2016 Performing $ 23,995 $ 21,590 $ 7,298 $ 6,153 $ 91,252 $ 88,767 Nonperforming — — — — 132 229 Nonaccrual 16 6 — — 439 791 $ 24,011 $ 21,596 $ 7,298 $ 6,153 $ 91,823 $ 89,787 |
Schedule of troubled debt restructurings | There were no loans that were considered troubled debt restructurings (“TDRs”) that were modified during the three- and nine-month periods ended September 30, 2017. The following schedule provides information on loans that were considered TDRs that were modified during the three- and nine-month periods ended September 30, 2016: Three Months Ended September 30, 2016 Nine Months Ended September 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 $ 113 $ 113 Residential Real Estate — — — 2 156 156 Total — $ — $ — 3 $ 269 $ 269 There were no TDRs as of September 30, 2017 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2017 that had been modified during the year prior to the default. The following schedule provides information on TDRs as of September 30, 2016 where the borrower was past due with respect to principal and/or interest for 30 days or more during the three months and nine months ended September 30, 2016 that had been modified during the year prior to the default: Three Months Ended Nine Months Ended September 30, 2016 September 30, 2016 (Dollars in thousands) Number Recorded Number Recorded of Loans Investment of Loans Investment Commercial real estate — $ — 1 $ 113 |
Schedule of impaired loans | Impaired loans by loan category as of September 30, 2017 and 2016 were as follows: Unpaid Average Interest (Dollars in thousands) Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized September 30, 2017 With no related allowance recorded Agricultural $ 424 $ 455 $ — $ 288 $ — Commercial and industrial 58 69 — 137 — Consumer — — — — — Commercial real estate 113 245 — 104 — Residential real estate 136 147 — 103 — Subtotal 731 916 — 632 — With an allowance recorded Agricultural — — — 161 — Commercial and industrial 134 134 5 195 1 Consumer 34 35 4 33 1 Commercial real estate 823 904 54 884 26 Residential real estate 2,336 2,354 228 2,475 75 Subtotal 3,327 3,427 291 3,748 103 Agricultural 424 455 — 449 — Commercial and industrial 192 203 5 332 1 Consumer 34 35 4 33 1 Commercial real estate 936 1,149 54 988 26 Residential real estate 2,472 2,501 228 2,578 75 Total $ 4,058 $ 4,343 $ 291 $ 4,380 $ 103 September 30, 2016 With no related allowance recorded Agricultural $ 489 $ 493 $ — $ 154 $ (1 ) Commercial and industrial 177 177 — 63 — Consumer 5 5 — 1 — Commercial real estate 230 351 — 1,071 33 Residential real estate 266 266 — 134 46 Subtotal 1,167 1,292 — 1,423 78 With an allowance recorded Agricultural 45 45 4 79 16 Commercial and industrial 273 247 8 242 4 Consumer 21 21 1 22 3 Commercial real estate 1,229 1,799 167 1,426 116 Residential real estate 2,843 2,859 321 2,670 308 Subtotal 4,411 4,971 501 4,439 447 Agricultural 534 538 4 233 15 Commercial and industrial 449 424 8 305 4 Consumer 26 26 1 23 3 Commercial real estate 1,459 2,150 167 2,497 149 Residential real estate 3,110 3,125 321 2,804 354 Total $ 5,578 $ 6,263 $ 501 $ 5,862 $ 525 |
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 September 30, 2017 Agricultural $ — $ — $ 83 $ 83 $ 46,023 $ 46,106 $ — Commercial and industrial — — 58 58 101,378 101,436 — Consumer 132 1 11 144 23,867 24,011 — Commercial real estate — — 113 113 123,303 123,416 — Construction real estate — — — — 7,298 7,298 — Residential real estate 625 24 221 870 90,953 91,823 132 $ 757 $ 25 $ 486 $ 1,268 $ 392,822 $ 394,090 $ 132 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 |
Schedule of nonaccrual loans by loan category | Nonaccrual loans by loan category follow: (Dollars in thousands) September 30, December 31, 2017 2016 Agricultural $ 423 $ 482 Commercial and industrial 59 245 Consumer 17 6 Commercial real estate 211 458 Construction real estate — — Residential real estate 439 792 $ 1,149 $ 1,983 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 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: (Dollars in thousands, except per share data) Three Months Ended Nine Months Ended 2017 2016 2017 2016 Basic Earnings Per Share Net income available to common shareholders $ 1,720 $ 1,683 $ 4,801 $ 4,402 Weighted average common shares outstanding 3,452,278 3,439,633 3,448,341 3,455,141 Basic earnings per share $ 0.50 $ 0.50 $ 1.39 $ 1.28 Diluted Earnings Per Share Net income available to common shareholders $ 1,720 $ 1,683 $ 4,801 $ 4,402 Weighted average common shares outstanding 3,452,278 3,439,633 3,448,341 3,455,141 Plus dilutive stock options and restricted stock units 6,370 4,146 4,744 4,380 Weighted average common shares outstanding and potentially dilutive shares 3,458,648 3,443,780 3,453,085 3,459,520 Diluted earnings per share $ 0.50 $ 0.50 $ 1.39 $ 1.28 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 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: (Dollars in thousands) Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2017 Assets: Cash and due from banks $ 12,725 $ 12,725 $ 12,725 $ — $ — Securities available for sale 173,306 173,306 1,877 157,886 13,543 Federal Home Loan Bank and Federal Reserve Bank stock 3,567 3,567 — 3,567 — Loans held for sale 2,378 2,451 — 2,451 — Loans to other financial institutions 13,293 13,699 — — 13,699 Loans, net 389,874 391,408 — — 391,408 Liabilities: Noninterest-bearing deposits 136,542 136,542 — 136,542 — Interest-bearing deposits 389,296 388,603 — 388,603 — Federal funds purchased 2,650 2,650 — 2,650 — Repurchase agreements 3,794 3,794 — 3,794 — Federal Home Loan Bank advances 30,276 30,298 — 30,298 — 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) | 9 Months Ended |
Sep. 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 September 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 in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Balance at Date Indicated Investment Securities, Available for Sale – September 30, 2017 U.S. Treasury notes and bonds $ — $ 4,015 $ — $ 4,015 U.S. Government and federal agency — 50,653 — 50,653 State and municipal — 83,552 12,043 95,595 Mortgage-backed — 9,420 — 9,420 Corporate — 5,695 — 5,695 Foreign debt — 4,440 — 4,440 Equity securities 1,877 — 1,500 3,377 Asset backed securities — 111 — 111 Total $ 1,877 $ 157,886 $ 13,543 $ 173,306 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 271 131 Net purchases, sales, calls, and maturities (1,831 ) 2,598 Net transfers into Level 3 — — Balance, September 30 $ 13,543 $ 14,528 |
Schedule of assets measured at fair value on a nonrecurring basis | Assets Measured at Fair Value on a Non-recurring Basis (Dollars in thousands) Balance at Dates Indicated Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired Loans September 30, 2017 $ 4,058 $ — $ — $ 4,058 December 31, 2016 $ 4,911 $ — $ — $ 4,911 Other Real Estate September 30, 2017 $ 182 $ — $ — $ 182 December 31, 2016 $ 437 $ — $ — $ 437 |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) $ in Thousands | 9 Months Ended |
Sep. 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 | 3,234 |
Shares issued during period under Employee Stock Purchase Plan, value | $ | $ 62,000 |
Restricted stock [Member] | |
Property, Plant and Equipment [Line Items] | |
Shares issued during period under Employee Stock Purchase Plan, shares | 5,197 |
Vesting period | 3 years |
Directors' Stock Purchase Plan [Member] | |
Property, Plant and Equipment [Line Items] | |
Shares issued during the period, shares | 3,881 |
Shares issued during the period, value | $ | $ 89,000 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 172,375 | $ 175,451 | |
Gross Unrealized Gains | 1,797 | 1,079 | |
Gross Unrealized Losses | (866) | (2,142) | |
Fair Value | 173,306 | 174,388 | |
U.S. Government and Federal Agency [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 51,086 | 59,864 | |
Gross Unrealized Gains | 11 | 34 | |
Gross Unrealized Losses | (444) | (846) | |
Fair Value | 50,653 | 59,052 | |
U.S. Treasury Notes and Bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 4,025 | 4,111 | |
Gross Unrealized Losses | (10) | (39) | |
Fair Value | 4,015 | 4,072 | |
State and Municipal [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 94,360 | 89,169 | |
Gross Unrealized Gains | 1,459 | 748 | |
Gross Unrealized Losses | (224) | (944) | |
Fair Value | 95,595 | 88,973 | |
Mortgage-backed [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 9,501 | 7,925 | |
Gross Unrealized Gains | 17 | 19 | |
Gross Unrealized Losses | (98) | (155) | |
Fair Value | 9,420 | 7,789 | |
Corporate [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 5,696 | 7,069 | |
Gross Unrealized Gains | 16 | 12 | |
Gross Unrealized Losses | (17) | (40) | |
Fair Value | 5,695 | 7,041 | |
Foreign Debt [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 4,512 | 4,514 | |
Gross Unrealized Losses | (72) | (114) | |
Fair Value | 4,440 | 4,400 | |
Equity Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 3,083 | 2,617 | |
Gross Unrealized Gains | 294 | 266 | |
Fair Value | [1] | 3,377 | 2,883 |
Asset-backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 112 | 182 | |
Gross Unrealized Losses | (1) | (4) | |
Fair Value | $ 111 | $ 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 | Sep. 30, 2017 | Dec. 31, 2016 | |
Securities maturing within: | |||
Less than 1 Year | $ 35,025 | ||
1 Year - 5 Years | 93,033 | ||
5 Years - 10 Years | 39,049 | ||
More than 10 Years | 6,199 | ||
Fair Value | 173,306 | $ 174,388 | |
U.S. Government and Federal Agency [Member] | |||
Securities maturing within: | |||
Less than 1 Year | 20,250 | ||
1 Year - 5 Years | 28,460 | ||
5 Years - 10 Years | 1,943 | ||
Fair Value | 50,653 | 59,052 | |
U.S. Treasury Notes and Bonds [Member] | |||
Securities maturing within: | |||
1 Year - 5 Years | 4,015 | ||
Fair Value | 4,015 | 4,072 | |
State and Municipal [Member] | |||
Securities maturing within: | |||
Less than 1 Year | 8,362 | ||
1 Year - 5 Years | 47,395 | ||
5 Years - 10 Years | 36,016 | ||
More than 10 Years | 3,822 | ||
Fair Value | 95,595 | 88,973 | |
Corporate [Member] | |||
Securities maturing within: | |||
Less than 1 Year | 5,302 | ||
1 Year - 5 Years | 393 | ||
Fair Value | 5,695 | 7,041 | |
Foreign Debt [Member] | |||
Securities maturing within: | |||
Less than 1 Year | 1,000 | ||
1 Year - 5 Years | 3,440 | ||
Fair Value | 4,440 | 4,400 | |
Asset-backed Securities [Member] | |||
Securities maturing within: | |||
Less than 1 Year | 111 | ||
Fair Value | 111 | 178 | |
Total Debt Securities [Member] | |||
Securities maturing within: | |||
Less than 1 Year | 35,025 | ||
1 Year - 5 Years | 83,703 | ||
5 Years - 10 Years | 37,959 | ||
More than 10 Years | 3,822 | ||
Fair Value | 160,509 | 163,716 | |
Mortgage-backed [Member] | |||
Securities maturing within: | |||
1 Year - 5 Years | 9,330 | ||
5 Years - 10 Years | 90 | ||
Fair Value | 9,420 | 7,789 | |
Equity Securities [Member] | |||
Securities maturing within: | |||
5 Years - 10 Years | [1] | 1,000 | |
More than 10 Years | [1] | 2,377 | |
Fair Value | [1] | $ 3,377 | $ 2,883 |
[1] | Equity securities are preferred and common stock that may or may not have a stated maturity. |
LOANS AND ALLOWANCE FOR LOAN 27
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Allowance for Loan Losses | |||||
Beginning balance | $ 4,098 | $ 4,296 | $ 4,277 | $ 4,194 | |
Charge-offs | (73) | (93) | (607) | (263) | |
Recoveries | 96 | 73 | 426 | 345 | |
Provision | 95 | 120 | |||
Ending balance | 4,216 | 4,276 | 4,216 | 4,276 | |
Individually evaluated for impairment | 291 | 501 | 291 | 501 | |
Collectively evaluated for impairment | 3,925 | 3,775 | 3,925 | 3,775 | |
Loans | |||||
Individually evaluated for impairment | 4,058 | 4,058 | $ 4,911 | ||
Collectively evaluated for impairment | 390,032 | 390,032 | 364,089 | ||
Loans | 394,090 | 394,090 | 369,000 | ||
Agricultural [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 395 | 399 | 433 | 420 | |
Provision | (1) | (11) | (39) | (32) | |
Ending balance | 394 | 388 | 394 | 388 | |
Individually evaluated for impairment | 4 | 4 | |||
Collectively evaluated for impairment | 394 | 384 | 394 | 384 | |
Loans | |||||
Individually evaluated for impairment | 424 | 424 | 526 | ||
Collectively evaluated for impairment | 45,682 | 45,682 | 44,088 | ||
Loans | 46,106 | 46,106 | 44,614 | ||
Commercial and Industrial [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 904 | 656 | 688 | 586 | |
Charge-offs | (12) | (374) | (33) | ||
Recoveries | 4 | 8 | 4 | 31 | |
Provision | (98) | (55) | 480 | 26 | |
Ending balance | 798 | 610 | 798 | 610 | |
Individually evaluated for impairment | 5 | 8 | 5 | 8 | |
Collectively evaluated for impairment | 793 | 602 | 793 | 602 | |
Loans | |||||
Individually evaluated for impairment | 192 | 192 | 301 | ||
Collectively evaluated for impairment | 101,244 | 101,244 | 95,787 | ||
Loans | 101,436 | 101,436 | 96,088 | ||
Consumer [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 294 | 279 | 305 | 297 | |
Charge-offs | (52) | (68) | (189) | (136) | |
Recoveries | 16 | 49 | 107 | 119 | |
Provision | 1 | 30 | 36 | 10 | |
Ending balance | 259 | 290 | 259 | 290 | |
Individually evaluated for impairment | 4 | 1 | 4 | 1 | |
Collectively evaluated for impairment | 255 | 289 | 255 | 289 | |
Loans | |||||
Individually evaluated for impairment | 34 | 34 | 28 | ||
Collectively evaluated for impairment | 23,977 | 23,977 | 21,568 | ||
Loans | 24,011 | 24,011 | 21,596 | ||
Commercial Real Estate [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 1,551 | 1,133 | 1,438 | 1,030 | |
Recoveries | 65 | 5 | 226 | 35 | |
Provision | (152) | 340 | (200) | 412 | |
Ending balance | 1,464 | 1,477 | 1,464 | 1,477 | |
Individually evaluated for impairment | 54 | 167 | 54 | 167 | |
Collectively evaluated for impairment | 1,410 | 1,310 | 1,410 | 1,310 | |
Loans | |||||
Individually evaluated for impairment | 936 | 936 | 1,073 | ||
Collectively evaluated for impairment | 122,480 | 122,480 | 109,689 | ||
Loans | 123,416 | 123,416 | 110,762 | ||
Construction Real Estate [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 25 | 44 | 62 | 46 | |
Recoveries | 40 | ||||
Provision | 1 | (3) | (76) | (5) | |
Ending balance | 26 | 41 | 26 | 41 | |
Collectively evaluated for impairment | 26 | 41 | 26 | 41 | |
Loans | |||||
Collectively evaluated for impairment | 7,298 | 7,298 | 6,153 | ||
Loans | 7,298 | 7,298 | 6,153 | ||
Residential Real Estate [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 748 | 1,222 | 1,014 | 1,388 | |
Charge-offs | (9) | (25) | (44) | (94) | |
Recoveries | 11 | 11 | 49 | 160 | |
Provision | (140) | (205) | (409) | (451) | |
Ending balance | 610 | 1,003 | 610 | 1,003 | |
Individually evaluated for impairment | 228 | 321 | 228 | 321 | |
Collectively evaluated for impairment | 382 | 682 | 382 | 682 | |
Loans | |||||
Individually evaluated for impairment | 2,472 | 2,472 | 2,983 | ||
Collectively evaluated for impairment | 89,351 | 89,351 | 86,804 | ||
Loans | 91,823 | 91,823 | $ 89,787 | ||
Unallocated [Member] | |||||
Allowance for Loan Losses | |||||
Beginning balance | 181 | 563 | 337 | 427 | |
Provision | 484 | (96) | 328 | 40 | |
Ending balance | 665 | 467 | 665 | 467 | |
Collectively evaluated for impairment | $ 665 | $ 467 | $ 665 | $ 467 |
LOANS AND ALLOWANCE FOR LOAN 28
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 1) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 394,090 | $ 369,000 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 46,106 | 44,614 |
Agricultural [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 12,488 | 12,005 |
Agricultural [Member] | Risk rating 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 23,957 | 23,852 |
Agricultural [Member] | Risk rating 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 8,865 | 7,505 |
Agricultural [Member] | Risk rating 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 373 | 726 |
Agricultural [Member] | Risk rating 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 423 | 526 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 101,436 | 96,088 |
Commercial and Industrial [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 12,691 | 12,135 |
Commercial and Industrial [Member] | Risk rating 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 64,953 | 56,714 |
Commercial and Industrial [Member] | Risk rating 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 23,141 | 25,895 |
Commercial and Industrial [Member] | Risk rating 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 484 | 1,267 |
Commercial and Industrial [Member] | Risk rating 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 167 | 77 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 123,416 | 110,762 |
Commercial Real Estate [Member] | Risk ratings 1 and 2 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 8,069 | 8,013 |
Commercial Real Estate [Member] | Risk rating 3 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 72,370 | 59,343 |
Commercial Real Estate [Member] | Risk rating 4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 39,920 | 39,641 |
Commercial Real Estate [Member] | Risk rating 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 1,530 | 1,867 |
Commercial Real Estate [Member] | Risk rating 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 1,527 | $ 1,898 |
LOANS AND ALLOWANCE FOR LOAN 29
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 2) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 394,090 | $ 369,000 |
Nonaccrual past due loans | 1,149 | 1,983 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 24,011 | 21,596 |
Nonaccrual past due loans | 16 | 6 |
Consumer [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 23,995 | 21,590 |
Construction Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 7,298 | 6,153 |
Construction Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 7,298 | 6,153 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 91,823 | 89,787 |
Nonaccrual past due loans | 439 | 791 |
Residential Real Estate [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | 91,252 | 88,767 |
Residential Real Estate [Member] | Nonperforming [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Risk rated loans | $ 132 | $ 229 |
LOANS AND ALLOWANCE FOR LOAN 30
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 3) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Financing Receivable, Modifications [Line Items] | |
Number of Loans | 3 |
Pre-Modification Outstanding Recorded Investment | $ 269 |
Post Modification Oustanding Recorded Investment | $ 269 |
Commercial Real Estate [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Loans | 1 |
Pre-Modification Outstanding Recorded Investment | $ 113 |
Post Modification Oustanding Recorded Investment | $ 113 |
Residential Real Estate [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Loans | 2 |
Pre-Modification Outstanding Recorded Investment | $ 156 |
Post Modification Oustanding Recorded Investment | $ 156 |
LOANS AND ALLOWANCE FOR LOAN 31
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 4) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Number of Loans | 3 |
Commercial Real Estate [Member] | |
Number of Loans | 1 |
Recorded Investment | $ 113 |
LOANS AND ALLOWANCE FOR LOAN 32
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 5) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | $ 731 | $ 1,167 |
Unpaid Principal Balance with no related allowance recorded | 916 | 1,292 |
Average Recorded Investment with no related allowance recorded | 632 | 1,423 |
Interest Income Recognized with no related allowance recorded | 78 | |
Recorded Investment with an allowance recorded | 3,327 | 4,411 |
Unpaid Principal Balance with an allowance recorded | 3,427 | 4,971 |
Related Allowance | 291 | 501 |
Average Recorded Investment with an allowance recorded | 3,748 | 4,439 |
Interest Income Recognized with an allowance recorded | 103 | 447 |
Recorded Investment | 4,058 | 5,578 |
Unpaid Principal Balance | 4,343 | 6,263 |
Related Allowance | 291 | 501 |
Average Recorded Investment | 4,380 | 5,862 |
Interest Income Recognized | 103 | 525 |
Agricultural [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 424 | 489 |
Unpaid Principal Balance with no related allowance recorded | 455 | 493 |
Average Recorded Investment with no related allowance recorded | 288 | 154 |
Interest Income Recognized with no related allowance recorded | (1) | |
Recorded Investment with an allowance recorded | 45 | |
Unpaid Principal Balance with an allowance recorded | 45 | |
Related Allowance | 4 | |
Average Recorded Investment with an allowance recorded | 161 | 79 |
Interest Income Recognized with an allowance recorded | 16 | |
Recorded Investment | 424 | 534 |
Unpaid Principal Balance | 455 | 538 |
Related Allowance | 4 | |
Average Recorded Investment | 449 | 233 |
Interest Income Recognized | 15 | |
Commercial and Industrial [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 58 | 177 |
Unpaid Principal Balance with no related allowance recorded | 69 | 177 |
Average Recorded Investment with no related allowance recorded | 137 | 63 |
Recorded Investment with an allowance recorded | 134 | 273 |
Unpaid Principal Balance with an allowance recorded | 134 | 247 |
Related Allowance | 5 | 8 |
Average Recorded Investment with an allowance recorded | 195 | 242 |
Interest Income Recognized with an allowance recorded | 1 | 4 |
Recorded Investment | 192 | 449 |
Unpaid Principal Balance | 203 | 424 |
Related Allowance | 5 | 8 |
Average Recorded Investment | 332 | 305 |
Interest Income Recognized | 1 | 4 |
Consumer [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 5 | |
Unpaid Principal Balance with no related allowance recorded | 5 | |
Average Recorded Investment with no related allowance recorded | 1 | |
Recorded Investment with an allowance recorded | 34 | 21 |
Unpaid Principal Balance with an allowance recorded | 35 | 21 |
Related Allowance | 4 | 1 |
Average Recorded Investment with an allowance recorded | 33 | 22 |
Interest Income Recognized with an allowance recorded | 1 | 3 |
Recorded Investment | 34 | 26 |
Unpaid Principal Balance | 35 | 26 |
Related Allowance | 4 | 1 |
Average Recorded Investment | 33 | 23 |
Interest Income Recognized | 1 | 3 |
Commercial Real Estate [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 113 | 230 |
Unpaid Principal Balance with no related allowance recorded | 245 | 351 |
Average Recorded Investment with no related allowance recorded | 104 | 1,071 |
Interest Income Recognized with no related allowance recorded | 33 | |
Recorded Investment with an allowance recorded | 823 | 1,229 |
Unpaid Principal Balance with an allowance recorded | 904 | 1,799 |
Related Allowance | 54 | 167 |
Average Recorded Investment with an allowance recorded | 884 | 1,426 |
Interest Income Recognized with an allowance recorded | 26 | 116 |
Recorded Investment | 936 | 1,459 |
Unpaid Principal Balance | 1,149 | 2,150 |
Related Allowance | 54 | 167 |
Average Recorded Investment | 988 | 2,497 |
Interest Income Recognized | 26 | 149 |
Residential Real Estate [Member] | ||
Impaired and Restructured Loans with or without related allowance recorded | ||
Recorded Investment with no related allowance recorded | 136 | 266 |
Unpaid Principal Balance with no related allowance recorded | 147 | 266 |
Average Recorded Investment with no related allowance recorded | 103 | 134 |
Interest Income Recognized with no related allowance recorded | 46 | |
Recorded Investment with an allowance recorded | 2,336 | 2,843 |
Unpaid Principal Balance with an allowance recorded | 2,354 | 2,859 |
Related Allowance | 228 | 321 |
Average Recorded Investment with an allowance recorded | 2,475 | 2,670 |
Interest Income Recognized with an allowance recorded | 75 | 308 |
Recorded Investment | 2,472 | 3,110 |
Unpaid Principal Balance | 2,501 | 3,125 |
Related Allowance | 228 | 321 |
Average Recorded Investment | 2,578 | 2,804 |
Interest Income Recognized | $ 75 | $ 354 |
LOANS AND ALLOWANCE FOR LOAN 33
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 6) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | $ 1,268 | $ 2,424 | |
Loans Not Past Due | 392,822 | 366,576 | |
Loans | 394,090 | 369,000 | |
Loans 90 Days Past Due and Accruing | 132 | 229 | |
Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 486 | 1,157 |
30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 757 | 1,126 | |
60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 25 | 141 | |
Agricultural [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 83 | ||
Loans Not Past Due | 46,023 | 44,614 | |
Loans | 46,106 | 44,614 | |
Agricultural [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 83 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 58 | 275 | |
Loans Not Past Due | 101,378 | 95,813 | |
Loans | 101,436 | 96,088 | |
Commercial and Industrial [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 58 | 245 |
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 | 144 | 107 | |
Loans Not Past Due | 23,867 | 21,489 | |
Loans | 24,011 | 21,596 | |
Consumer [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 11 | 6 |
Consumer [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 132 | 99 | |
Consumer [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 1 | 2 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 113 | 260 | |
Loans Not Past Due | 123,303 | 110,502 | |
Loans | 123,416 | 110,762 | |
Commercial Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 113 | 260 |
Construction Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Loans Not Past Due | 7,298 | 6,153 | |
Loans | 7,298 | 6,153 | |
Residential Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 870 | 1,782 | |
Loans Not Past Due | 90,953 | 88,005 | |
Loans | 91,823 | 89,787 | |
Loans 90 Days Past Due and Accruing | 132 | 229 | |
Residential Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | [1] | 221 | 646 |
Residential Real Estate [Member] | 30 to 59 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | 625 | 1,027 | |
Residential Real Estate [Member] | 60 to 89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Past Due Total | $ 24 | $ 109 | |
[1] | Includes nonaccrual loans. |
LOANS AND ALLOWANCE FOR LOAN 34
LOANS AND ALLOWANCE FOR LOAN LOSSES (Details 7) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 1,149 | $ 1,983 |
Agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 423 | 482 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 59 | 245 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 16 | 6 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | 211 | 458 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual loans | $ 439 | $ 791 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Basic Earnings Per Share | |||||
Net income available to common shareholders | $ 1,720 | $ 1,683 | $ 4,801 | $ 4,402 | |
Weighted average common shares outstanding | 3,452,278 | 3,439,633 | 3,448,341 | 3,455,141 | |
Basic earnings per share | [1] | $ 0.50 | $ 0.50 | $ 1.39 | $ 1.28 |
Diluted Earnings Per Share | |||||
Net income available to common shareholders | $ 1,720 | $ 1,683 | $ 4,801 | $ 4,402 | |
Weighted average common shares outstanding | 3,452,278 | 3,439,633 | 3,448,341 | 3,455,141 | |
Plus dilutive stock options and restricted stock units | 6,370 | 4,146 | 4,744 | 4,380 | |
Weighted average common shares outstanding and potentially dilutive shares | 3,458,648 | 3,443,780 | 3,453,085 | 3,459,520 | |
Diluted earnings per share | [1] | $ 0.50 | $ 0.50 | $ 1.39 | $ 1.28 |
[1] | Note that 2016 per-share amounts have been adjusted for the 5% stock dividend paid on May 31, 2017. |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |||
Stock dividend paid | 5.00% | ||
Dilutive stock options excluded in calculation of earnings per share | 31,500 | 32,550 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Securities available for sale | $ 173,306 | $ 174,388 |
Loans to other financial institutions | 13,293 | |
Liabilities: | ||
Noninterest-bearing deposits | 136,542 | 127,611 |
Interest-bearing deposits | 389,296 | 384,775 |
Federal funds purchased | 2,650 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets: | ||
Cash and due from banks | 12,725 | 14,809 |
Securities available for sale | 1,877 | 1,383 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets: | ||
Securities available for sale | 157,886 | 157,902 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,567 |
Loans held for sale | 2,451 | 2,044 |
Liabilities: | ||
Noninterest-bearing deposits | 136,542 | 127,611 |
Interest-bearing deposits | 388,603 | 383,879 |
Federal funds purchased | 2,650 | |
Repurchase agreements | 3,794 | 7,913 |
Federal Home Loan Bank advances | 30,298 | 12,323 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets: | ||
Securities available for sale | 13,543 | 15,103 |
Loans to other financial institutions | 13,699 | |
Loans, net | 391,408 | 365,780 |
Carrying Amount [Member] | ||
Assets: | ||
Cash and due from banks | 12,725 | 14,809 |
Securities available for sale | 173,306 | 174,388 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,567 |
Loans held for sale | 2,378 | 1,974 |
Loans to other financial institutions | 13,293 | |
Loans, net | 389,874 | 364,723 |
Liabilities: | ||
Noninterest-bearing deposits | 136,542 | 127,611 |
Interest-bearing deposits | 389,296 | 384,775 |
Federal funds purchased | 2,650 | |
Repurchase agreements | 3,794 | 7,913 |
Federal Home Loan Bank advances | 30,276 | 12,301 |
Estimated Fair Value [Member] | ||
Assets: | ||
Cash and due from banks | 12,725 | 14,809 |
Securities available for sale | 173,306 | 174,388 |
Federal Home Loan Bank and Federal Reserve Bank stock | 3,567 | 3,567 |
Loans held for sale | 2,451 | 2,044 |
Loans to other financial institutions | 13,699 | |
Loans, net | 391,408 | 365,780 |
Liabilities: | ||
Noninterest-bearing deposits | 136,542 | 127,611 |
Interest-bearing deposits | 388,603 | 383,879 |
Federal funds purchased | 2,650 | |
Repurchase agreements | 3,794 | 7,913 |
Federal Home Loan Bank advances | $ 30,298 | $ 12,323 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | $ 173,306 | $ 174,388 | |
Equity Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | [1] | 3,377 | 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 | 4,015 | 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 | 50,653 | 59,052 | |
State and Municipal [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 95,595 | 88,973 | |
Mortgage-backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 9,420 | 7,789 | |
Corporate [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 5,695 | 7,041 | |
Foreign Debt [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 4,440 | 4,400 | |
Asset-backed Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Securities available for sale | 111 | 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 | 1,877 | 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 | 157,886 | 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 | 13,543 | 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 | 173,306 | 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 | 3,377 | 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 | 4,015 | 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 | 50,653 | 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 | 95,595 | 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 | 9,420 | 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 | 5,695 | 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 | 4,440 | 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 | 111 | 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 | 1,877 | 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 | 1,877 | 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 | 157,886 | 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 | 4,015 | 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 | 50,653 | 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 | 83,552 | 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 | 9,420 | 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 | 5,695 | 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 | 4,440 | 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 | 111 | 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 | 13,543 | 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 | $ 12,043 | $ 13,603 | |
[1] | Equity securities are preferred and common stock that may or may not have a stated maturity. |
FAIR VALUE MEASUREMENTS (Deta39
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 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 | $ 271 | $ 131 |
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 | 271 | 131 |
Net purchases, sales, calls, and maturities | (1,831) | 2,598 |
Balance at the end of year | $ 13,543 | $ 14,528 |
FAIR VALUE MEASUREMENTS (Deta40
FAIR VALUE MEASUREMENTS (Details 2) - Fair Value measured on a Non-Recurring Basis [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | $ 4,058 | $ 4,911 |
Other real estate owned, net | 182 | 437 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired Loans | 4,058 | 4,911 |
Other real estate owned, net | $ 182 | $ 437 |
FAIR VALUE MEASUREMENTS (Deta41
FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | ||
Total unrealized gains (losses) included in other comprehensive income | $ 271 | $ 131 |
Purchased during period | 3,200 | 5,100 |
Securities matured or were called | 4,800 | 2,200 |
Principal paydowns | $ 204 | $ 267 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) $ in Thousands | Oct. 04, 2017 | Dec. 31, 2017 |
Subsequent Event [Member] | Ridgetown Investments LLC [Member ] | ||
Subsequent Event [Line Items] | ||
Proceeds from sale of portion of investment book | $ 908 | $ 908 |