Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 25, 2016 | |
Entity Registrant Name | Stock Yards Bancorp, Inc. | |
Entity Central Index Key | 835,324 | |
Trading Symbol | sybt | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 14,985,768 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Cash and due from banks | $ 35,022 | $ 35,895 |
Federal funds sold | 13,016 | 67,938 |
Cash and cash equivalents | 48,038 | 103,833 |
Mortgage loans held for sale | 3,984 | 6,800 |
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | 569,012 | 565,876 |
Federal Home Loan Bank stock and other securities | 6,347 | 6,347 |
Loans | 2,094,488 | 2,033,007 |
Less allowance for loan losses | 22,451 | 22,441 |
Net loans | 2,072,037 | 2,010,566 |
Premises and equipment, net | 39,975 | 39,557 |
Bank owned life insurance | 31,217 | 30,996 |
Accrued interest receivable | 7,146 | 6,610 |
Other assets | 46,351 | 46,216 |
Total assets | 2,824,107 | 2,816,801 |
Liabilities and Stockholders’ Equity | ||
Non-interest bearing | 606,375 | 583,768 |
Interest bearing | 1,759,725 | 1,787,934 |
Total deposits | 2,366,100 | 2,371,702 |
Securities sold under agreements to repurchase | 54,781 | 64,526 |
Federal funds purchased | 30,083 | 22,477 |
Accrued interest payable | 119 | 127 |
Other liabilities | 33,465 | 27,982 |
Total advances | 43,236 | 43,468 |
Total liabilities | $ 2,527,784 | $ 2,530,282 |
Stockholders’ equity: | ||
Preferred stock, no par value. Authorized 1,000,000 shares; no shares issued or outstanding | ||
Common stock, no par value. Authorized 40,000,000 shares; issued and outstanding 14,985,129 and 14,919,351 shares in 2016 and 2015, respectively | $ 10,835 | $ 10,616 |
Additional paid-in capital | 45,733 | 44,180 |
Retained earnings | 235,809 | 231,091 |
Accumulated other comprehensive income | 3,946 | 632 |
Total stockholders’ equity | 296,323 | 286,519 |
Total liabilities and stockholders’ equity | $ 2,824,107 | $ 2,816,801 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Securities available for sale, amortized cost | $ 561,906 | $ 564,391 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 14,985,129 | 14,919,351 |
Common stock, shares outstanding (in shares) | 14,985,129 | 14,919,351 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest income: | ||
Loans | $ 21,993 | $ 20,415 |
Federal funds sold | 189 | 68 |
Mortgage loans held for sale | 60 | 39 |
Securities – taxable | 2,155 | 2,034 |
Securities – tax-exempt | 303 | 291 |
Total interest income | 24,700 | 22,847 |
Interest expense: | ||
Deposits | 996 | 973 |
Federal funds purchased | 15 | 7 |
Securities sold under agreements to repurchase | 33 | 37 |
Federal Home Loan Bank advances | 187 | 216 |
Total interest expense | 1,231 | 1,233 |
Net interest income | 23,469 | $ 21,614 |
Provision for loan losses | 500 | |
Net interest income after provision for loan losses | 22,969 | $ 21,614 |
Non-interest income: | ||
Investment management and trust revenue | 4,612 | 4,552 |
Service charges on deposit accounts | 2,146 | 2,080 |
Bankcard transaction revenue | 1,310 | 1,122 |
Mortgage banking revenue | 794 | 828 |
Brokerage commissions and fees | 443 | 461 |
Bank owned life insurance income | 221 | 222 |
Other | 556 | 408 |
Total non-interest income | 10,082 | 9,673 |
Non-interest expenses: | ||
Salaries and employee benefits | 12,195 | 11,100 |
Net occupancy expense | 1,524 | 1,469 |
Data processing expense | 1,544 | 1,454 |
Furniture and equipment expense | 285 | 247 |
FDIC insurance expense | 328 | 297 |
Amortization of investment in tax credit partnerships | 1,015 | 158 |
Other | 2,649 | 3,054 |
Total non-interest expenses | 19,540 | 17,779 |
Income before income taxes | 13,511 | 13,508 |
Income tax expense | 3,676 | 4,253 |
Net income | $ 9,835 | $ 9,255 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.66 | $ 0.63 |
Diluted (in dollars per share) | $ 0.65 | $ 0.62 |
Average common shares: | ||
Basic (in shares) | 14,836 | 14,647 |
Diluted (in shares) | 15,061 | 14,852 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net income | $ 9,835 | $ 9,255 |
Other comprehensive income, net of tax: | ||
Unrealized gains arising during the period (net of tax of $1,968 and $1,011, respectively) | 3,653 | 1,880 |
Unrealized (losses) gains arising during the period (net of tax of ($183) and ($9), respectively) | (339) | (19) |
Other comprehensive income | 3,314 | 1,861 |
Comprehensive income | $ 13,149 | $ 11,116 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Unrealized (losses) gains arising during the period, tax | $ 1,968 | $ 1,011 |
Unrealized (losses) gains arising during the period, tax | $ (183) | $ (9) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2014 | 14,745 | ||||
Balance at Dec. 31, 2014 | $ 10,035 | $ 38,191 | $ 209,584 | $ 2,085 | $ 259,895 |
Net income | $ 9,255 | 9,255 | |||
Other comprehensive income, net of tax | $ 1,861 | 1,861 | |||
Stock compensation expense | $ 501 | 501 | |||
Stock issued for share-based awards, net of withholdings to satisfy employee tax obligations upon award (in shares) | 66 | ||||
Stock issued for share-based awards, net of withholdings to satisfy employee tax obligations upon award | $ 219 | $ 1,112 | $ (1,346) | (15) | |
Cash dividends, $0.23 per share | $ (3,393) | (3,393) | |||
Shares repurchased or cancelled (in shares) | (16) | ||||
Shares repurchased or cancelled | $ (51) | $ (452) | (503) | ||
Balance (in shares) at Mar. 31, 2015 | 14,795 | ||||
Balance at Mar. 31, 2015 | $ 10,203 | 39,352 | $ 214,100 | $ 3,946 | 267,601 |
Balance (in shares) at Dec. 31, 2015 | 14,919 | ||||
Balance at Dec. 31, 2015 | $ 10,616 | $ 44,180 | 231,091 | $ 632 | 286,519 |
Net income | $ 9,835 | 9,835 | |||
Other comprehensive income, net of tax | $ 3,314 | 3,314 | |||
Stock compensation expense | $ 513 | 513 | |||
Stock issued for share-based awards, net of withholdings to satisfy employee tax obligations upon award (in shares) | 70 | ||||
Stock issued for share-based awards, net of withholdings to satisfy employee tax obligations upon award | $ 232 | $ 1,146 | $ (1,499) | (121) | |
Cash dividends, $0.23 per share | (3,737) | $ (3,737) | |||
Shares repurchased or cancelled (in shares) | (4) | ||||
Shares repurchased or cancelled | $ (13) | $ (106) | 119 | ||
Balance (in shares) at Mar. 31, 2016 | 14,985 | ||||
Balance at Mar. 31, 2016 | $ 10,835 | $ 45,733 | $ 235,809 | $ 3,946 | $ 296,323 |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Additional Paid-in Capital [Member] | ||
Cash dividends (in dollars per share) | $ 0.25 | $ 0.23 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Operating activities: | |||
Net income | $ 9,835,000 | $ 9,255,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 500,000 | $ 750,000 | |
Depreciation, amortization and accretion, net | 2,662,000 | $ 1,672,000 | |
Deferred income tax provision | 1,179,000 | 1,090,000 | |
Gain on sales of mortgage loans held for sale | (462,000) | (560,000) | |
Origination of mortgage loans held for sale | (20,788,000) | (27,100,000) | |
Proceeds from sale of mortgage loans held for sale | 24,066,000 | 24,926,000 | |
Bank owned life insurance income | $ (221,000) | (222,000) | |
Loss on the disposal of premises and equipment | 9,000 | ||
(Gain) loss on the sale of other real estate | $ (333,000) | 20,000 | |
Stock compensation expense | 513,000 | 501,000 | |
Excess tax benefits from share-based compensation arrangements | (404,000) | (154,000) | |
(Increase) decrease in accrued interest receivable and other assets | (4,774,000) | 237,000 | |
Increase (decrease) in accrued interest payable and other liabilities | 5,871,000 | (3,036,000) | |
Net cash provided by operating activities | 17,644,000 | 6,638,000 | |
Investing activities: | |||
Purchases of securities available-for-sale | $ (117,915,000) | (70,664,000) | |
Proceeds from sale of securities available for sale | 5,934,000 | 5,900,000 | |
Proceeds from maturities of securities available-for-sale | $ 119,615,000 | 108,502,000 | |
Net increase in loans | (62,660,000) | (5,644,000) | |
Purchases of premises and equipment | (1,169,000) | (1,728,000) | |
Proceeds from sale of other real estate | 513,000 | 272,000 | |
Net cash (used in) provided by investing activities | (61,616,000) | 36,672,000 | |
Financing activities: | |||
Net decrease in deposits | (5,602,000) | (13,398,000) | |
Net decrease in securities sold under agreements to repurchase and federal funds purchased | (2,139,000) | (42,635,000) | |
Proceeds from Federal Home Loan Bank advances | 30,000,000 | 10,000,000 | |
Repayments of Federal Home Loan Bank advances | (30,232,000) | (10,088,000) | |
Issuance of common stock for options and performance stock units | 495,000 | 167,000 | |
Excess tax benefits from share-based compensation arrangements | 404,000 | 154,000 | |
Common stock repurchases | (1,020,000) | (839,000) | |
Cash dividends paid | (3,729,000) | (3,393,000) | |
Net cash used in financing activities | (11,823,000) | (60,032,000) | |
Net decrease in cash and cash equivalents | (55,795,000) | (16,722,000) | |
Cash and cash equivalents at beginning of period | 103,833,000 | 74,241,000 | 74,241,000 |
Cash and cash equivalents at end of period | $ 48,038,000 | 57,519,000 | $ 103,833,000 |
Supplemental cash flow information: | |||
Income tax payments | 1,000 | ||
Cash paid for interest | $ 1,239,000 | 1,237,000 | |
Supplemental non-cash activity: | |||
Transfers from loans to other real estate owned | $ 689,000 | $ 146,000 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | (1) Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and footnotes required by U.S. generally accepted accounting principles (US GAAP) for complete financial statements. The consolidated unaudited financial statements of Stock Yards Bancorp, Inc. (“Bancorp”) and its subsidiary reflect all adjustments (consisting only of adjustments of a normal recurring nature) which are, in the opinion of management, necessary for a fair presentation of financial condition and results of operations for the interim periods. The unaudited consolidated financial statements include the accounts of Stock Yards Bancorp, Inc. and its wholly-owned subsidiary, Stock Yards Bank & Trust Company (“Bank”). Significant intercompany transactions and accounts have been eliminated in consolidation. In preparing the unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of related revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of available-for sale securities, other real estate owned and income tax assets, and estimated liabilities and expense. A description of other significant accounting policies is presented in the notes to Consolidated Financial Statements for the year ended December 31, 2015 included in Stock Yards Bancorp, Inc.’s Annual Report on Form 10-K. Certain reclassifications have been made in the prior year financial statements to conform to current year classifications. Interim results for the three month period ended March 31, 2016 are not necessarily indicative of the results for the entire year. Critical Accounting Policies Management has identified the accounting policy related to the allowance and provision for loan losses as critical to the understanding of Bancorp’s results of operations and discussed this conclusion with the Audit Committee of the Board of Directors. Since the application of this policy requires significant management assumptions and estimates, it could result in materially different amounts to be reported if conditions or underlying circumstances were to change. The provision reflects an allowance methodology that is driven by risk ratings, historical losses, and qualitative factors. Assumptions include many factors such as changes in borrowers’ financial condition which can change quickly or historical loss ratios related to certain loan portfolios which may or may not be indicative of future losses. In the second quarter of 2015, Bancorp extended the historical period used to capture Bancorp’s historical loss ratios from 12 quarters to 24 quarters. Management believes the extension of the look-back period is appropriate to capture the impact of a full economic cycle and more accurately represents the current level of risk inherent in the loan portfolio. To the extent that management’s assumptions prove incorrect, the results from operations could be materially affected by a higher or lower provision for loan losses. The accounting policy related to the allowance for loan losses is applicable to the commercial banking segment of Bancorp. The allowance for loan losses is management’s estimate of probable losses inherent in the loan portfolio as of the balance sheet date. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Bancorp’s allowance calculation includes allocations to loan portfolio segments at March 31, 2016 for qualitative factors including, among other factors, economic and business conditions in each of our primary markets, the quality and experience of lending staff and management, exceptions to lending policies, levels of and trends in past due loans and loan classifications, concentrations of credit such as collateral type, trends in portfolio growth, dependency upon the value of underlying collateral for collateral-dependent loans, effect of other external factors such as the national economic and business trends, and the quality and depth of the loan review function. Bancorp utilizes the sum of all allowance amounts derived as described above as the appropriate level of allowance for loan and lease losses. Changes in the criteria used in this evaluation or the availability of new information could cause the allowance to be increased or decreased in future periods. In addition, bank regulatory agencies, as part of their examination process, may require adjustments to the allowance for loan and lease losses based on their judgments and estimates. |
Note 2 - Securities
Note 2 - Securities | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | (2) Securities The amortized cost, unrealized gains and losses, and fair value of securities available-for-sale follow: (in thousands) Amortized Unrealized Fair March 31, 2016 cost Gains Losses value Government sponsored enterprise obligations $ 333,470 $ 3,608 $ 162 $ 336,916 Mortgage-backed securities - government agencies 166,933 2,601 423 169,111 Obligations of states and political subdivisions 60,850 1,512 26 62,336 Corporate equity securities 653 - 4 649 Total securities available for sale $ 561,906 $ 7,721 $ 615 $ 569,012 December 31, 2015 U.S. Treasury and other U.S. Government obligations $ 79,999 $ 1 $ - $ 80,000 Government sponsored enterprise obligations 251,190 1,468 765 251,893 Mortgage-backed securities - government agencies 170,139 1,143 1,654 169,628 Obligations of states and political subdivisions 62,410 1,342 50 63,702 Corporate equity securities 653 - - 653 Total securities available for sale $ 564,391 $ 3,954 $ 2,469 $ 565,876 Corporate equity securities, included in the available-for-sale portfolio at March 31, 2016 and December 31, 2015, consisted of common stock in a publicly-traded small business investment company. There were no securities classified as held to maturity as of March 31, 2016 or December 31, 2015. No securities were sold in the first three months of 2016. In the first three months of 2015, Bancorp sold securities with total fair market value of $5.9 million, generating no gain or loss. These securities consisted of mortgage-backed securities with small remaining balances and agency securities. These sales were made in the ordinary course of portfolio management. Management has the intent and ability to hold all remaining investment securities available-for-sale for the foreseeable future. A summary of the available-for-sale investment securities by maturity groupings as of March 31, 2016 is shown below. (in thousands) Amortized Fair Securities available-for-sale cost value Due within 1 year $ 115,644 $ 115,721 Due after 1 but within 5 years 139,936 141,921 Due after 5 but within 10 years 23,300 23,675 Due after 10 years 115,440 117,935 Mortgage-backed securities 166,933 169,111 Corporate equity securities 653 649 Total securities available-for-sale $ 561,906 $ 569,012 Actual maturities may differ from contractual maturities because some issuers have the right to call or prepay obligations. In addition to equity securities, the investment portfolio includes agency mortgage-backed securities, which are guaranteed by agencies such as the FHLMC, FNMA, and GNMA. These securities differ from traditional debt securities primarily in that they may have uncertain principal payment dates and are priced based on estimated prepayment rates on the underlying collateral. Securities with a carrying value of approximately $337.8 million at March 31, 2016 and $380.7 million at December 31, 2015 were pledged to secure accounts of commercial depositors in cash management accounts, public deposits, and cash balances for certain investment management and trust accounts. Securities with unrealized losses not recognized in the statements of income are as follows: (in thousands) Less than 12 months 12 months or more Total March 31, 2016 Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Government sponsored enterprise obligations $ 141,052 $ 90 $ 7,848 $ 72 $ 148,900 $ 162 Mortgage-backed securities - government agencies 7,917 31 28,823 392 36,740 423 Obligations of states and political subdivisions 5,054 15 1,339 11 6,393 26 Corporate equity securities 649 4 - - 649 4 Total temporarily impaired securities $ 154,672 $ 140 $ 38,010 $ 475 $ 192,682 $ 615 December 31, 2015 Government sponsored enterprise obligations $ 102,098 $ 500 $ 8,469 $ 265 $ 110,567 $ 765 Mortgage-backed securities - government agencies 49,774 662 29,936 992 79,710 1,654 Obligations of states and political subdivisions 13,225 31 1,955 19 15,180 50 Total temporarily impaired securities $ 165,097 $ 1,193 $ 40,360 $ 1,276 $ 205,457 $ 2,469 Applicable dates for determining when securities are in an unrealized loss position are March 31, 2016 and December 31, 2015. As such, it is possible that a security had a market value lower than its amortized cost on other days during the past twelve months, but is not in the “Investments with an Unrealized Loss of less than 12 months” category above. Unrealized losses on Bancorp’s investment securities portfolio have not been recognized as an expense because the securities are of high credit quality, and the decline in fair values is due to changes in the prevailing interest rate environment since the purchase date. Fair value is expected to recover as securities reach their maturity date and/or the interest rate environment returns to conditions similar to when these securities were purchased. These investments consist of 37 and 70 separate investment positions as of March 31, 2016 and December 31, 2015, respectively. Because management does not intend to sell the investments, and it is not likely that Bancorp will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, Bancorp does not consider these securities to be other-than-temporarily impaired at March 31, 2016. FHLB stock and other securities are investments held by Bancorp which are not readily marketable and are carried at cost. This category includes holdings of Federal Home Loan Bank of Cincinnati (FHLB) stock which are required for access to FHLB borrowing, and are classified as restricted securities. |
Note 3 - Loans
Note 3 - Loans | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | (3) Loans Composition of loans, net of deferred fees and costs, by primary loan portfolio class follows: (in thousands) March 31, 2016 December 31, 2015 Commercial and industrial $ 676,782 $ 644,398 Construction and development, excluding undeveloped land 139,148 134,482 Undeveloped land 21,519 21,185 Real estate mortgage: Commercial investment 496,647 482,639 Owner occupied commercial 372,811 375,016 1-4 family residential 234,199 226,575 Home equity - first lien 52,042 50,115 Home equity - junior lien 63,336 63,066 Subtotal: Real estate mortgage 1,219,035 1,197,411 Consumer 38,004 35,531 Total loans $ 2,094,488 $ 2,033,007 The following table presents the balance in the recorded investment in loans and allowance for loan losses by portfolio segment and based on impairment evaluation method as of March 31, 2016 and December 31, 2015. (in thousands) Type of loan March 31, 2016 Commercial industrial Construction and development excluding undeveloped land Undeveloped land Real estate mortgage Consumer Total Loans $ 676,782 $ 139,148 $ 21,519 $ 1,219,035 $ 38,004 $ 2,094,488 Loans collectively evaluated for impairment $ 672,059 $ 138,827 $ 21,519 $ 1,214,376 $ 37,906 $ 2,084,687 Loans individually evaluated for impairment $ 4,647 $ - $ - $ 4,173 $ 98 $ 8,918 Loans acquired with deteriorated credit quality $ 76 $ 321 $ - $ 486 $ - $ 883 Commercial industrial Construction and development excluding undeveloped land Undeveloped land Real estate mortgage Consumer Total Allowance for loan losses At December 31, 2015 $ 8,645 $ 1,760 $ 814 $ 10,875 $ 347 $ 22,441 Provision (credit) 813 159 94 (578 ) 12 500 Charge-offs (348 ) - - (203 ) (117 ) (668 ) Recoveries 32 10 - 20 116 178 At March 31, 2016 $ 9,142 $ 1,929 $ 908 $ 10,114 $ 358 $ 22,451 Allowance for loans collectively evaluated for impairment $ 8,760 $ 1,929 $ 908 $ 9,814 $ 292 $ 21,703 Allowance for loans individually evaluated for impairment $ 382 $ - $ - $ 300 $ 66 $ 748 Allowance for loans acquired with deteriorated credit quality $ - $ - $ - $ - $ - $ - (in thousands) Type of loan December 31, 2015 Commercial and industrial Construction and development excluding undeveloped land Undeveloped land Real estate mortgage Consumer Total Loans $ 644,398 $ 134,482 $ 21,185 $ 1,197,411 $ 35,531 $ 2,033,007 Loans collectively evaluated for impairment $ 639,760 $ 134,160 $ 21,185 $ 1,192,864 $ 35,463 $ 2,023,432 Loans individually evaluated for impairment $ 4,635 $ - $ - $ 4,050 $ 68 $ 8,753 Loans acquired with deteriorated credit quality $ 3 $ 322 $ - $ 497 $ - $ 822 Commercial and industrial Construction and development excluding undeveloped land Undeveloped land Real estate mortgage Consumer Total Allowance for loan losses At December 31, 2014 $ 11,819 $ 721 $ 1,545 $ 10,541 $ 294 $ 24,920 Provision (credit) 793 1,065 (2,131 ) 872 151 750 Charge-offs (4,065 ) (26 ) - (693 ) (597 ) (5,381 ) Recoveries 98 - 1,400 155 499 2,152 At December 31, 2015 $ 8,645 $ 1,760 $ 814 $ 10,875 $ 347 $ 22,441 Allowance for loans collectively evaluated for impairment $ 8,377 $ 1,760 $ 814 $ 10,667 $ 279 $ 21,897 Allowance for loans individually evaluated for impairment $ 268 $ - $ - $ 208 $ 68 $ 544 Allowance for loans acquired with deteriorated credit quality $ - $ - $ - $ - $ - $ - The considerations by Bancorp in computing its allowance for loan losses are determined based on the various risk characteristics of each loan segment. Relevant risk characteristics are as follows: ● Commercial and industrial loans: Loans in this category are made to businesses. Generally these loans are secured by assets of the business and repayment is expected from the cash flows of the business. A decline in the strength of the business or a weakened economy and resultant decreased consumer and/or business spending may have an effect on the credit quality in this loan category. ● Construction and development, excluding undeveloped land: Loans in this category primarily include owner-occupied and investment construction loans and commercial development projects. In most cases, construction loans require only interest to be paid during construction. Upon completion or stabilization, the construction loan may convert to permanent financing in the real estate mortgage segment, requiring principal amortization. Repayment of development loans is derived from sale of lots or units including any pre-sold units. Credit risk is affected by construction delays, cost overruns, market conditions and availability of permanent financing, to the extent such permanent financing is not being provided by Bancorp. ● Undeveloped land: Loans in this category are secured by land initially acquired for development by the borrower, but for which no development has yet taken place. Credit risk is affected by market conditions and time to sell lots at an adequate price. Credit risk is also affected by availability of permanent financing, to the extent such permanent financing is not being provided by Bancorp. ● Real estate mortgage: Loans in this category are made to and secured by owner-occupied residential real estate, owner-occupied real estate used for business purposes, and income-producing investment properties. For owner occupied residential and commercial real estate, repayment is dependent on financial strength of the borrower. For income-producing investment properties, repayment is dependent on financial strength of tenants in addition to the borrower. Underlying properties are generally located in Bancorp's primary market area. Cash flows of income producing investment properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on credit quality. Overall health of the economy, including unemployment rates and real estate prices, has an effect on credit quality in this loan category. ● Consumer: Loans in this category may be either secured or unsecured and repayment is dependent on credit quality of the individual borrower and, if applicable, adequacy of collateral securing the loan. Therefore, overall health of the economy, including unemployment rates and stock prices, will have a significant effect on credit quality in this loan category. Bancorp has loans that were acquired in a 2013 acquisition, for which there was, at acquisition, evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans is included in the balance sheet amounts of loans at March 31, 2016 and December 31, 2015. Changes in the fair value adjustment for acquired impaired loans are shown in the following table. (in thousands) Accretable discount Non-accretable discount Balance at December 31, 2014 $ 62 $ 266 Accretion (59 ) (77 ) Reclassifications from (to) non-accretable discount - - Disposals - - Balance at December 31, 2015 $ 3 $ 189 Accretion (3 ) - Reclassifications from (to) non-accretable discount - - Disposals - - Balance at March 31, 2016 $ - $ 189 Accretion in the non-accretable discount column represents accretion recorded upon payoff of loans. The following table presents loans individually evaluated for impairment. (in thousands) Unpaid Average Recorded principal Related recorded March 31, 2016 investment balance allowance investment Loans with no related allowance recorded: Commercial and industrial $ 3,544 $ 4,581 $ - $ 3,332 Construction and development, excluding undeveloped land - - - - Undeveloped land - - - - Real estate mortgage Commercial investment 204 204 - 241 Owner occupied commercial 1,693 2,132 - 1,718 1-4 family residential 1,115 1,115 - 1,011 Home equity - first lien - - - 7 Home equity - junior lien 289 289 - 191 Subtotal: Real estate mortgage 3,301 3,740 - 3,168 Consumer 32 32 - 16 Subtotal $ 6,877 $ 8,353 $ - $ 6,516 Loans with an allowance recorded: Commercial and industrial $ 1,103 $ 1,578 $ 382 $ 1,310 Construction and development, excluding undeveloped land - - - - Undeveloped land - - - - Real estate mortgage Commercial investment - - - - Owner occupied commercial 872 872 300 945 1-4 family residential - - - - Home equity - first lien - - - - Home equity - junior lien - - - - Subtotal: Real estate mortgage 872 872 300 945 Consumer 66 66 66 67 Subtotal $ 2,041 $ 2,516 $ 748 $ 2,322 Total: Commercial and industrial $ 4,647 $ 6,159 $ 382 $ 4,642 Construction and development, excluding undeveloped land - - - - Undeveloped land - - - - Real estate mortgage - - - - Commercial investment 204 204 - 241 Owner occupied commercial 2,565 3,004 300 2,663 1-4 family residential 1,115 1,115 - 1,011 Home equity - first lien - - - 7 Home equity - junior lien 289 289 - 191 Subtotal: Real estate mortgage 4,173 4,612 300 4,113 Consumer 98 98 66 83 Total $ 8,918 $ 10,869 $ 748 $ 8,838 (in thousands) Unpaid Average Recorded principal Related recorded December 31, 2015 investment balance allowance investment Loans with no related allowance recorded: Commercial and industrial $ 3,119 $ 3,859 $ - $ 1,414 Construction and development, excluding undeveloped land - 151 - 21 Undeveloped land - - - - Real estate mortgage Commercial investment 278 278 - 178 Owner occupied commercial 1,743 2,713 - 1,622 1-4 family residential 906 906 - 661 Home equity - first lien 13 13 - 37 Home equity - junior lien 92 92 - 69 Subtotal: Real estate mortgage 3,032 4,002 - 2,567 Consumer - - - 3 Subtotal $ 6,151 $ 8,012 $ - $ 4,005 Loans with an allowance recorded: Commercial and industrial $ 1,516 $ 3,087 $ 268 $ 4,612 Construction and development, excluding undeveloped land - - - 368 Undeveloped land - - - - Real estate mortgage Commercial investment - - - 92 Owner occupied commercial 1,018 1,018 208 1,266 1-4 family residential - - - 188 Home equity - first lien - - - - Home equity - junior lien - - - - Subtotal: Real estate mortgage 1,018 1,018 208 1,546 Consumer 68 68 68 72 Subtotal $ 2,602 $ 4,173 $ 544 $ 6,598 Total: Commercial and industrial $ 4,635 $ 6,946 $ 268 $ 6,026 Construction and development, excluding undeveloped land - 151 - 389 Undeveloped land - - - - Real estate mortgage - - - - Commercial investment 278 278 - 270 Owner occupied commercial 2,761 3,731 208 2,888 1-4 family residential 906 906 - 849 Home equity - first lien 13 13 - 37 Home equity - junior lien 92 92 - 69 Subtotal: Real estate mortgage 4,050 5,020 208 4,113 Consumer 68 68 68 75 Total $ 8,753 $ 12,185 $ 544 $ 10,603 Differences between recorded investment amounts and unpaid principal balance amounts less related allowance are due to partial charge-offs which have occurred over the life of loans and fair value adjustments recorded for loans acquired. Impaired loans include non-accrual loans and accruing loans accounted for as troubled debt restructurings (TDR), which continue to accrue interest. Non-performing loans include the balance of impaired loans plus any loans over 90 days past due and still accruing interest. Bancorp did not have any loans past due more than 90 days and still accruing interest, compared to $176 thousand at December 31, 2015. The following table presents the recorded investment in non-accrual loans as of March 31, 2016 and December 31, 2015. (in thousands) March 31, 2016 December 31, 2015 Commercial and industrial $ 3,673 $ 3,643 Construction and development, excluding undeveloped land - - Undeveloped land - - Real estate mortgage Commercial investment 204 278 Owner occupied commercial 2,565 2,761 1-4 family residential 1,115 906 Home equity - first lien - 13 Home equity - junior lien 289 92 Subtotal: Real estate mortgage 4,173 4,050 Consumer 32 - Total $ 7,878 $ 7,693 Bancorp did not have any loans accounted for as TDR that were restructured and experienced a subsequent payment default during the three and twelve month periods ended March 31, 2016 or 2015. Loans accounted for as TDR include modifications from original terms such as those due to bankruptcy proceedings, certain modifications of amortization periods or extended suspension of principal payments due to customer financial difficulties. Loans accounted for as TDR, which have not defaulted, are individually evaluated for impairment and, at March 31, 2016, had a total allowance allocation of $330 thousand, compared to $177 thousand at December 31, 2015. At March 31, 2016 and December 31, 2015, Bancorp did not have any outstanding commitments to lend additional funds to borrowers whose loans have been modified as TDR. The following table presents the aging of the recorded investment in loans as of March 31, 2016 and December 31, 2015. 90 or more Recorded (in thousands) days past investment due > 90 days 30-59 days 60-89 days (includes) Total Total and March 31, 2016 past due past due non-accrual) past due Current loans accruing Commercial and industrial $ 654 $ 37 $ 3,673 $ 4,364 $ 672,418 $ 676,782 $ - Construction and development, excluding undeveloped land - - - - 139,148 139,148 - Undeveloped land 1,859 - - 1,859 19,660 21,519 - Real estate mortgage Commercial investment 315 278 204 797 495,850 496,647 - Owner occupied commercial 1,495 95 2,565 4,155 368,656 372,811 - 1-4 family residential 626 193 1,115 1,934 232,265 234,199 - Home equity - first lien - - - - 52,042 52,042 - Home equity - junior lien 129 120 289 538 62,798 63,336 - Subtotal: Real estate mortgage 2,565 686 4,173 7,424 1,211,611 1,219,035 - Consumer 224 5 32 261 37,743 38,004 - Total $ 5,302 $ 728 $ 7,878 $ 13,908 $ 2,080,580 $ 2,094,488 $ - December 31, 2015 Commercial and industrial $ 238 $ 327 $ 3,643 $ 4,208 $ 640,190 $ 644,398 $ - Construction and development, excluding undeveloped land - - - - 134,482 134,482 - Undeveloped land - - - - 21,185 21,185 - Real estate mortgage Commercial investment 290 140 278 708 481,931 482,639 - Owner occupied commercial - - 2,761 2,761 372,255 375,016 - 1-4 family residential 1,147 94 1,082 2,323 224,252 226,575 176 Home equity - first lien 35 51 13 99 50,016 50,115 - Home equity - junior lien 285 173 92 550 62,516 63,066 - Subtotal: Real estate mortgage 1,757 458 4,226 6,441 1,190,970 1,197,411 176 Consumer 343 8 - 351 35,180 35,531 - Total $ 2,338 $ 793 $ 7,869 $ 11,000 $ 2,022,007 $ 2,033,007 $ 176 Consistent with regulatory guidance, Bancorp categorizes loans into credit risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. Pass-rated loans included all risk-rated loans other than those classified as other assets especially mentioned, substandard, and doubtful, which are defined below: ● Other assets especially mentioned (“OAEM”): Loans classified as OAEM have potential weaknesses that deserve management's close attention. These potential weaknesses may result in deterioration of repayment prospects for the loan or of Bancorp's credit position at some future date. ● Substandard: Loans classified as substandard are inadequately protected by the paying capacity of the obligor or of collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize repayment of the debt. Default is a distinct possibility if the deficiencies are not corrected. ● Substandard non-performing: Loans classified as substandard non-performing have all the characteristics of substandard loans and have been placed on non-accrual status or have been accounted for as troubled debt restructurings. Loans are placed on non-accrual status when prospects for recovering both principal and accrued interest are considered doubtful or when a default of principal or interest has existed for 90 days or more. ● Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. As of March 31, 2016 and December 31, 2015, the internally assigned risk grades of loans by category were as follows: (in thousands) Substandard Total March 31, 2016 Pass OAEM Substandard non-performing Doubtful loans Commercial and industrial $ 642,042 $ 22,907 $ 7,186 $ 4,647 $ - $ 676,782 Construction and development, excluding undeveloped land 137,924 - 1,224 - - 139,148 Undeveloped land 20,854 - 665 - - 21,519 Real estate mortgage Commercial investment 494,426 1,950 67 204 - 496,647 Owner occupied commercial 354,090 12,591 3,565 2,565 - 372,811 1-4 family residential 232,502 582 - 1,115 - 234,199 Home equity - first lien 52,042 - - - - 52,042 Home equity - junior lien 62,997 50 - 289 - 63,336 Subtotal: Real estate mortgage 1,196,057 15,173 3,632 4,173 - 1,219,035 Consumer 37,906 - - 98 - 38,004 Total $ 2,034,783 $ 38,080 $ 12,707 $ 8,918 $ - $ 2,094,488 December 31, 2015 Commercial and industrial $ 612,853 $ 19,672 $ 7,238 $ 4,635 $ - $ 644,398 Construction and development, excluding undeveloped land 133,342 773 367 - - 134,482 Undeveloped land 20,513 517 155 - - 21,185 Real estate mortgage Commercial investment 480,178 2,183 - 278 - 482,639 Owner occupied commercial 351,707 17,135 3,413 2,761 - 375,016 1-4 family residential 224,645 848 - 1,082 - 226,575 Home equity - first lien 50,102 - - 13 - 50,115 Home equity - junior lien 62,924 50 - 92 - 63,066 Subtotal: Real estate mortgage 1,169,556 20,216 3,413 4,226 - 1,197,411 Consumer 35,463 - - 68 - 35,531 Total $ 1,971,727 $ 41,178 $ 11,173 $ 8,929 $ - $ 2,033,007 |
Note 4 - Securities Sold Under
Note 4 - Securities Sold Under Agreements to Repurchase | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Securities Sold Under Agreements To Repurchase [Text Block] | (4) Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase, which represent excess funds from commercial customers as part of a cash management service, totaled $54.8 million and $64.5 million at March 31, 2016 and December 31, 2015, respectively. Bancorp enters into sales of securities under agreement to repurchase at a specified future date. At March 31, 2016, all of these financing arrangements had overnight maturities and were secured by government sponsored enterprise obligations and government agency mortgage-backed securities which were owned and under the control of Bancorp. |
Note 5 - Federal Home Loan Bank
Note 5 - Federal Home Loan Bank Advances | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Federal Home Loan Bank Advances, Disclosure [Text Block] | (5) Federal Home Loan Bank Advances Bancorp had outstanding borrowings of $43.2 million and $43.5 million at March 31, 2016 and December 31, 2015, respectively, via 12 separate fixed-rate advances. For two advances totaling $30 million, both of which are non-callable, interest payments are due monthly, with principal due at maturity. For the remaining advances totaling $13.2 million, principal and interest payments are due monthly based on an amortization schedule. The following is a summary of the contractual maturities and average effective rates of outstanding advances: (In thousands) March 31, 2016 December 31, 2015 Year Advance Fixed Rate Advance Fixed Rate 2016 $ 30,000 0.59 % $ 30,000 0.55 % 2020 1,826 2.23 1,838 2.23 2021 411 2.12 429 2.12 2024 2,815 2.36 2,865 2.36 2025 6,849 2.44 6,991 2.44 2028 1,335 1.48 1,345 1.48 Total $ 43,236 1.11 % $ 43,468 1.09 % Advances from the FHLB are collateralized by certain commercial and residential real estate mortgage loans totaling $557.1 million under a blanket mortgage collateral agreement and FHLB stock. Bancorp believes these borrowings to be an effective alternative to higher cost time deposits to manage interest rate risk associated with long-term fixed rate loans. At March 31, 2016, the amount of available credit from the FHLB totaled $355.6 million. |
Note 6 - Other Comprehensive In
Note 6 - Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | (6) Other Comprehensive Income (Loss) The following table illustrates activity within the balances in accumulated other comprehensive income (loss) by component, and is shown for the three months ended March 31, 2016 and 2015. Net unrealized Net unrealized Minimum gains on gains (losses) pension securities on cash liability (in thousands) available-for-sale flow hedges adjustment Total Balance at December 31, 2014 $ 2,456 $ 16 $ (387 ) $ 2,085 Other comprehensive income (loss) 1,880 (19 ) - 1,861 Net current period other comprehensive income (loss) 1,880 (19 ) - 1,861 Balance at March 31, 2015 $ 4,336 $ (3 ) $ (387 ) $ 3,946 Balance at December 31, 2015 $ 965 $ (60 ) $ (273 ) $ 632 Other comprehensive income (loss) 3,653 (339 ) - 3,314 Net current period other comprehensive income (loss) 3,653 (339 ) - 3,314 Balance at March 31, 2016 $ 4,618 $ (399 ) $ (273 ) $ 3,946 |
Note 7 - Derivative Financial I
Note 7 - Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | (7) Derivative Financial Instruments Occasionally, Bancorp enters into free-standing interest rate swaps for the benefit of its commercial customers who desire to hedge their exposure to changing interest rates. Bancorp offsets its interest rate exposure on these transactions by entering into offsetting swap agreements with substantially matching terms with approved reputable independent counterparties. These undesignated derivative instruments are recognized on the consolidated balance sheet at fair value. Because of matching terms of offsetting contracts and collateral provisions mitigating any non-performance risk, changes in fair value subsequent to initial recognition are expected to have an insignificant effect on earnings. Exchanges of cash flows related to the undesignated interest rate swap agreements for the first three months of 2016 were offsetting and therefore had no net effect on Bancorp’s earnings or cash flows. Interest rate swap agreements derive their value from underlying interest rates. These transactions involve both credit and market risk. Notional amounts are amounts on which calculations, payments, and the value of the derivative are based. Notional amounts do not represent direct credit exposures. Direct credit exposure is limited to the net difference between the calculated amounts to be received and paid, if any. Bancorp is exposed to credit-related losses in the event of nonperformance by counterparties to these agreements. Bancorp mitigates the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and does not expect any counterparties to fail their obligations. At March 31, 2016 and December 31, 2015, Bancorp had outstanding undesignated interest rate swap contracts as follows: (dollar amounts in thousands) Receiving Paying March 31, December 31, March 31, December 31, 2016 2015 2016 2015 Notional amount $ 20,560 $ 10,788 $ 20,560 $ 10,788 Weighted average maturity (years) 6.8 6.9 6.8 6.9 Fair value $ (944 ) $ (461 ) $ 944 $ 461 In 2013, Bancorp entered into an interest rate swap to hedge cash flows of a $10 million rolling fixed-rate three-month FHLB borrowing. The swap began December 6, 2013 and ends December 6, 2016. In 2015, Bancorp entered into an interest rate swap to hedge cash flows of a $20 million rolling fixed-rate three-month FHLB borrowing. The swap began December 9, 2015 and matures December 6, 2020. For purposes of hedging, the rolling fixed rate advances are considered to be floating rate liabilities. The interest rate swaps involve exchange of Bancorp’s floating rate interest payments for fixed rate swap payments on underlying principal amounts. These swaps were designated, and qualified, for cash-flow hedge accounting. For derivative instruments that are designated and qualify as cash flow hedging instruments, the effective portion of gains or losses is reported as a component of other comprehensive income, and is subsequently reclassified into earnings as an adjustment to interest expense in periods in which the hedged forecasted transaction affects earnings. The following table details Bancorp’s derivative position designated as a cash flow hedge, and the fair values as of March 31, 2016 and December 31, 2015. (dollars in thousands) Fair value Fair value Notional Maturity Receive (variable) Pay fixed March 31, December 31, amount date index swap rate 2016 2015 $ 10,000 12/6/2016 US 3 Month LIBOR 0.72 % $ (1 ) $ 8 20,000 12/6/2020 US 3 Month LIBOR 1.79 % (614 ) (101 ) $ 30,000 1.43 % $ (615 ) $ (93 ) |
Note 8 - Goodwill and Intangibl
Note 8 - Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | (8) Goodwill and Intangible Assets US GAAP requires that goodwill and intangible assets with indefinite useful lives not be amortized, but instead be tested for impairment at least annually. Annual evaluations have resulted in no indication of impairment. Bancorp currently has goodwill in the amount of $682 thousand from the 1996 acquisition of an Indiana bank. This goodwill is assigned to the commercial banking segment of Bancorp. In 2013, Bancorp completed the acquisition of THE BANCorp, Inc., parent company of THE BANK – Oldham County, Inc. As a result, Bancorp recorded a core deposit intangible totaling $2.5 million which is being amortized over the expected life of the underlying deposits to which the intangible is attributable. For money market, savings and interest bearing checking accounts, this intangible asset is being amortized using a straight line method over 15 years. For the remainder of deposits, it is being amortized over a 10-year period using an accelerated method which anticipates the life of the underlying deposits. At March 31, 2016, the unamortized core deposit intangible was $1.5 million. Mortgage servicing rights (MSRs) are initially recognized at fair value when mortgage loans are sold with servicing retained. The MSRs are amortized in proportion to and over the period of estimated net servicing income, considering appropriate prepayment assumptions. MSRs are evaluated quarterly for impairment by comparing carrying value to fair value. Estimated fair values of MSRs at March 31, 2016 and December 31, 2015 were $2.7 million and $3.1 million, respectively. Total outstanding principal balances of loans serviced for others were $402.3 million and $410.8 million at March 31, 2016, and December 31, 2015, respectively. Changes in the net carrying amount of MSRs are shown in the following table: For three months ended March 31, (in thousands) 2016 2015 Balance at beginning of period $ 1,018 $ 1,131 Additions for mortgage loans sold 29 116 Amortization (58 ) (180 ) Balance at March 31 $ 989 $ 1,067 |
Note 9 - Defined Benefit Retire
Note 9 - Defined Benefit Retirement Plan | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | (9) Defined Benefit Retirement Plan Bancorp sponsors an unfunded, non-qualified, defined benefit retirement plan for three key officers (two current and one retired), and has no plans to increase the number of or benefits to participants. Benefits vest based on 25 years of service. The retired officer and one current officer are fully vested, and one current officer will be fully vested in 2017. Actuarially determined pension costs are expensed and accrued over the service period, and benefits are paid from Bancorp’s assets. Net periodic benefits costs, which include interest cost and amortization of net losses, totaled $33 thousand and $36 thousand, for the three months ended March 31, 2016 and 2015, respectively. |
Note 10 - Commitments and Conti
Note 10 - Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | (10) Commitments and Contingent Liabilities As of March 31, 2016, Bancorp had various commitments outstanding that arose in the normal course of business, including standby letters of credit and commitments to extend credit, which are properly not reflected in the consolidated financial statements. In management’s opinion, commitments to extend credit of $613.8 million including standby letters of credit of $13.4 million represent normal banking transactions. Commitments to extend credit were $636.9 million, including letters of credit of $12.8 million, as of December 31, 2015. Commitments to extend credit are agreements to lend to a customer as long as collateral is available and there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses. Commitments to extend credit are mainly comprised of commercial lines of credit, construction and home equity credit lines and credit cards issued to commercial customers. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Bancorp uses the same credit and collateral policies in making commitments and conditional guarantees as for on-balance sheet instruments. Bancorp evaluates each customer’s creditworthiness on a case by case basis. The amount of collateral obtained is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, equipment, and real estate. However, should the commitments be drawn upon and should our customers default on their resulting obligation to us, our maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those instruments. At March 31, 2016, Bancorp has accrued $387 thousand in other liabilities for inherent risks related to unfunded credit commitments. Standby letters of credit and financial guarantees written are conditional commitments issued by Bancorp to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support private commercial transactions. Standby letters of credit generally have maturities of one to two years. Also, as of March 31, 2016, in the normal course of business, there were pending legal actions and proceedings in which claims for damages are asserted. Management, after discussion with legal counsel, believes the ultimate result of these legal actions and proceedings will not have a material adverse effect on the consolidated financial position or results of operations of Bancorp. |
Note 11 - Preferred Stock
Note 11 - Preferred Stock | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | (11) Preferred Stock Bancorp has a class of preferred stock (no par value; 1,000,000 shares authorized), the relative rights, preferences and other terms of which or any series within the class will be determined by the Board of Directors prior to any issuance. None of this stock has been issued to date. |
Note 12 - Stock-based Compensat
Note 12 - Stock-based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | (12) Stock-Based Compensation The fair value of all awards granted, net of estimated forfeitures, is recognized as compensation expense over the respective service period. Bancorp currently has one stock-based compensation plan. At Bancorp's 2015 Annual Meeting of Shareholders, shareholders approved the 2015 Omnibus Equity Compensation Plan and authorized the shares available from the expiring 2005 plan for future awards under the 2015 plan. No additional shares were made available. As of March 31, 2016, there were 226,608 shares available for future awards. The 2005 Stock Incentive Plan expired in April 2015; however, options and SARs granted under this plan expire as late as 2025. Options, which have not been granted since 2007, generally had a vesting schedule of 20% per year. Stock appreciation rights (“SARs”) granted have a vesting schedule of 20% per year. Options and SARs expire ten years after the grant date unless forfeited due to employment termination. Restricted shares granted to officers vest over five years. All restricted shares have been granted at a price equal to the market value of common stock at the time of grant. For all grants prior to 2015, grantees are entitled to dividend payments during the vesting period. For grants in 2015 and 2016, forfeitable dividends are deferred until shares are vested. Fair value of restricted shares is equal to the market value of the shares on the date of grant. Grants of performance stock units (“PSUs”) vest based upon service and a single three-year performance period which begins January 1 of the first year of the performance period. Because grantees are not entitled to dividend payments during the performance period, the fair value of these PSUs is estimated based upon the fair value of the underlying shares on the date of grant, adjusted for non-payment of dividends. Beginning in 2015, grants require a one year post-vesting holding periods. For 2015 and 2016, the fair value of such grants incorporates a liquidity discount of 4.80% and 4.50%, respectively, related to the holding period. Grants of restricted stock units (“RSUs”) to directors are time-based and vest 12 months after grant date. Because grantees are entitled to deferred dividend payments at the end of the vesting period, fair value of the RSUs is estimated based on fair value of underlying shares on the date of grant. Bancorp has recognized stock-based compensation expense, within salaries and employee benefits for employees, and within other non-interest expense for directors, in the consolidated statements of income as follows: For three months ended March 31, (in thousands) 2016 2015 Stock-based compensation expense before income taxes $ 513 $ 501 Less: deferred tax benefit (180 ) (176 ) Reduction of net income $ 333 $ 325 Bancorp expects to record an additional $1.7 million of stock-based compensation expense in 2016 for equity grants outstanding as of March 31, 2016. As of March 31, 2016, Bancorp has $5.4 million of unrecognized stock-based compensation expense that is expected to be recorded as compensation expense over the next five years as awards vest. Bancorp received cash of $495 thousand and $167 thousand from the exercise of options during the first three months of 2016 and 2015, respectively. Fair values of Bancorp’s stock options and SARs are estimated at the date of grant using the Black-Scholes option pricing model, a leading formula for calculating the value of stock options and SARs. This model requires the input of assumptions, changes to which can materially affect the fair value estimate. Fair value of restricted shares is determined by Bancorp’s closing stock price on the date of grant. The following assumptions were used in SAR valuations at the grant date in each year: 2016 2015 Dividend yield 2.94 % 2.97 % Expected volatility 19.31 % 22.81 % Risk free interest rate 1.70 % 1.91 % Expected life of SARs (years) 7.3 7.5 Dividend yield and expected volatility are based on historical information for Bancorp corresponding to the expected life of options and SARs granted. Expected volatility is the volatility of the underlying shares for the expected term on a monthly basis. The risk free interest rate is the implied yield currently available on U.S. Treasury issues with a remaining term equal to the expected life of the options. The expected life of SARs is based on actual experience of past like-term SARs. Bancorp evaluates historical exercise and post-vesting termination behavior when determining the expected life. A summary of stock option and SAR activity and related information for the three months ended March 31, 2016 follows: Weighted Weighted Aggregate Weighted average Options average intrinsic average remaining and SARs Exercise exercise value fair contractual (in thousands) price price (in thousands) value life (in years) At December 31, 2015 Vested and exercisable 437 $ 21.03-29.16 $ 23.62 $ 6,191 $ 5.09 3.7 Unvested 177 22.86-36.83 27.99 1,733 4.93 7.7 Total outstanding 614 21.03-36.83 24.88 7,924 5.04 4.8 Granted 58 38.63 38.63 - 5.33 Exercised (26 ) 24.07-26.83 26.14 293 6.06 Forfeited - - - - - At March 31, 2016 Vested and exercisable 472 21.03-34.43 23.81 6,952 4.99 4.0 Unvested 174 22.86-38.63 32.21 1,105 5.15 8.5 Total outstanding 646 21.03-38.63 26.07 $ 8,057 5.03 5.2 Vested year-to-date 61 22.86-34.43 26.14 $ 753 4.70 Intrinsic value for stock options and SARs is defined as the amount by which the current market price of the underlying stock exceeds the exercise or grant price. The aggregate intrinsic value of stock options and SARs exercised was calculated as the difference in the closing price of Bancorp’s common shares on the date of exercise and the exercise price, multiplied by the number of shares exercised. For the periods ending December 31, 2015 and March 31, 2016, Bancorp granted shares of restricted common stock as outlined in the following table: Grant date weighted- Number average cost Unvested at December 31, 2014 114,093 $ 24.95 Shares awarded 35,265 34.48 Restrictions lapsed and shares released to employees (40,510 ) 23.84 Shares forfeited (4,649 ) 28.46 Unvested at December 31, 2015 104,199 $ 28.46 Shares awarded 33,630 38.63 Restrictions lapsed and shares released to employees (31,456 ) 26.78 Shares forfeited (4,040 ) 29.47 Unvested at March 31, 2016 102,333 $ 32.28 Bancorp awarded performance-based restricted stock units (“PSUs”) to executive officers of Bancorp, the single three-year performance period for which began January 1 of the award year. The following table outlines the PSU grants. Vesting Expected Grant period Fair shares to year in years value be awarded 2014 3 $ 26.42 33,349 2015 3 30.03 21,258 2016 3 33.92 18,442 In the first quarter of 2016, Bancorp awarded 5,432 RSUs to directors of Bancorp with a grant date fair value of $200 thousand. |
Note 13 - Net Income Per Share
Note 13 - Net Income Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | (13) Net Income Per Share The following table reflects, for the three months ended March 31, 2016 and 2015, net income (numerator) and average shares outstanding (denominator) for basic and diluted net income per share computations: Three months ended (In thousands, except per share data) March 31 2016 2015 Net income $ 9,835 $ 9,255 Average shares outstanding 14,836 14,647 Dilutive securities 225 205 Average shares outstanding including dilutive securities including dilutive securities 15,061 14,852 Net income per share, basic $ 0.66 $ 0.63 Net income per share, diluted $ 0.65 $ 0.62 |
Note 14 - Segments
Note 14 - Segments | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (14) Segments Bancorp’s principal activities include commercial banking and investment management and trust. Commercial banking provides a full range of loan and deposit products to individual consumers and businesses. Commercial banking also includes Bancorp’s mortgage origination and securities brokerage activity. Investment management and trust provides wealth management services including investment management, trust and estate administration, and retirement plan services. Financial information for each business segment reflects that which is specifically identifiable or allocated based on an internal allocation method. Income taxes are allocated based on the effective federal income tax rate adjusted for any tax exempt activity. All tax exempt activity and provision for loan losses have been allocated to the commercial banking segment. Measurement of performance of business segments is based on the management structure of Bancorp and is not necessarily comparable with similar information for any other financial institution. Information presented is also not necessarily indicative of the segments’ operations if they were independent entities. Selected financial information by business segment for the three month periods ended March 31, 2016 and 2015 follows: Investment Commercial management (in thousands) banking and trust Total Three months ended March 31, 2016 Net interest income $ 23,407 $ 62 $ 23,469 Provision for loan losses 500 - 500 Investment management and trust revenue - 4,612 4,612 All other non-interest income 5,470 - 5,470 Non-interest expense 16,895 2,645 19,540 Income before income taxes 11,482 2,029 13,511 Tax expense 2,951 725 3,676 Net income $ 8,531 $ 1,304 $ 9,835 Three months ended March 31, 2015 Net interest income $ 21,560 $ 54 $ 21,614 Provision for loan losses - - - Investment management and trust revenue - 4,552 4,552 All other non-interest income 5,121 - 5,121 Non-interest expense 15,191 2,588 17,779 Income before income taxes 11,490 2,018 13,508 Tax expense 3,534 719 4,253 Net income $ 7,956 $ 1,299 $ 9,255 |
Note 15 - Income Taxes
Note 15 - Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | (15) Income Taxes Components of income tax expense from operations were as follows: Three months ended March 31, (in thousands) 2015 2014 Current tax expense Federal $ 2,373 $ 3,076 State 124 87 Total current tax expense 2,497 3,163 Deferred tax expense Federal 1,101 984 State 78 106 Total deferred tax expense 1,179 1,090 Total income tax expense $ 3,676 $ 4,253 An analysis of the difference between statutory and effective tax rates for the three months ended March 31, 2016 and 2015 follows: Three months ended March 31, 2016 2015 U.S. federal statutory tax rate 35.0 % 35.0 % Tax credits (9.7 ) (2.4 ) Tax exempt interest income (1.3 ) (1.4 ) Cash surrender value of life insurance (0.8 ) (1.0 ) State income taxes 1.0 0.9 Other, net 3.0 0.4 Effective tax rate 27.2 % 31.5 % State income tax expense represents tax owed in Indiana. Kentucky and Ohio state bank taxes are based on capital levels, and are recorded as other non-interest expense. US GAAP provides guidance on financial statement recognition and measurement of tax positions taken, or expected to be taken, in tax returns. As of March 31, 2016 and December 31, 2015, the gross amount of unrecognized tax benefits, including penalties and interest, was $45 thousand and $42 thousand, respectively. If recognized, tax benefits would reduce tax expense and accordingly, increase net income. The amount of unrecognized tax benefits may increase or decrease in the future for various reasons including adding amounts for current year tax positions, expiration of open income tax returns due to statutes of limitation, changes in management’s judgment about the level of uncertainty, status of examination, litigation and legislative activity and addition or elimination of uncertain tax positions. Federal and state income tax returns are subject to examination for the years after 2011. |
Note 16 - Assets and Liabilitie
Note 16 - Assets and Liabilities Measured and Reported at Fair Value | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | (16) Assets and Liabilities Measured and Reported at Fair Value Bancorp follows the provisions of authoritative guidance for fair value measurements. This guidance is definitional and disclosure oriented and addresses how companies should approach measuring fair value when required by US GAAP. The guidance also prescribes various disclosures about financial statement categories and amounts which are measured at fair value, if such disclosures are not already specified elsewhere in US GAAP. Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between participants at the measurement date. The guidance also establishes a hierarchy to group assets and liabilities carried at fair value in three levels based upon the markets in which the assets and liabilities trade and the reliability of assumptions used to determine fair value. These levels are: ● Level 1: Valuation is based upon quoted prices for identical instruments traded in active markets. ● Level 2: Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. ● Level 3: Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions would reflect internal estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques could include pricing models, discounted cash flows and other similar techniques. Authoritative guidance requires maximization of use of observable inputs and minimization of use of unobservable inputs in fair value measurements. Where there exists limited or no observable market data, Bancorp derives its own estimates by generally considering characteristics of the asset/liability, the current economic and competitive environment and other factors. For this reason, results cannot be determined with precision and may not be realized on an actual sale or immediate settlement of the asset or liability. Bancorp’s investment securities available-for-sale and interest rate swaps are recorded at fair value on a recurring basis. Other accounts including mortgage servicing rights, impaired loans and other real estate owned may be recorded at fair value on a non-recurring basis, generally in the application of lower of cost or market adjustments or write-downs of specific assets. The portfolio of investment securities available-for-sale is comprised of U.S. Treasury and other U.S. government obligations, debt securities of U.S. government-sponsored corporations (including mortgage-backed securities), obligations of state and political subdivisions and corporate equity securities. U.S. Treasury and corporate equity securities are priced using quoted prices of identical securities in an active market. These measurements are classified as Level 1 in the hierarchy above. All other securities are priced using standard industry models or matrices with various assumptions such as yield curves, volatility, prepayment speeds, default rates, time value, credit rating and market prices for similar instruments. These assumptions are generally observable in the market place and can be derived from or supported by observable data. These measurements are classified as Level 2 in the hierarchy above. Interest rate swaps are valued using primarily Level 2 inputs. Fair value measurements generally based on benchmark forward yield curves and other relevant observable market data. For purposes of potential valuation adjustments to derivative positions, Bancorp evaluates the credit risk of its counterparties as well as its own credit risk. To date, Bancorp has not realized any losses due to a counterparty’s inability to perform and the change in value of derivative assets and liabilities attributable to credit risk was not significant during 2016. Below are the carrying values of assets measured at fair value on a recurring basis. (in thousands) Fair value at March 31, 2016 Assets Total Level 1 Level 2 Level 3 Investment securities available-for-sale Government sponsored enterprise obligations $ 336,916 $ - $ 336,916 $ - Mortgage-backed securities - government agencies 169,111 - 169,111 - Obligations of states and political subdivisions 62,336 - 62,336 - Corporate equity securities 649 649 - - Total investment securities available-for-sale 569,012 649 568,363 - Interest rate swaps 944 - 944 - Total assets $ 569,956 $ 649 $ 569,307 $ - Liabilities Interest rate swaps $ 1,559 $ - $ 1,559 $ - (in thousands) Fair value at December 31, 2015 Assets Total Level 1 Level 2 Level 3 Investment securities available-for-sale U.S. Treasury and other U.S. government obligations $ 80,000 $ 80,000 $ - $ - Government sponsored enterprise obligations 251,893 - 251,893 - Mortgage-backed securities - government agencies 169,628 - 169,628 - Obligations of states and political subdivisions 63,702 - 63,702 - Corporate equity securities 653 653 - - Total investment securities available-for-sale 565,876 80,653 485,223 - Interest rate swaps 461 - 461 - Total assets $ 566,337 $ 80,653 $ 485,684 $ - Liabilities Interest rate swaps $ 554 $ - $ 554 $ - Bancorp had no financial instruments classified within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis at March 31, 2016 or December 31, 2015. MSRs are recorded at fair value upon capitalization, are amortized to correspond with estimated servicing income, and are periodically assessed for impairment based on fair value at the reporting date. Fair value is based on a valuation model that calculates the present value of estimated net servicing income. The model incorporates assumptions that market participants would use in estimating future net servicing income. These measurements are classified as Level 3. At March 31, 2016 and December 31, 2015 there was no valuation allowance for the mortgage servicing rights, as the fair value exceeded the cost. Accordingly, the MSRs are not included in either table below for March 31, 2016 or December 31, 2015. See Note 8 for more information regarding MSRs. For impaired loans in the table below, the fair value is calculated as the carrying value of only loans with a specific valuation allowance, less the specific allowance. Fair value of impaired loans was primarily measured based on the value of the collateral securing these loans. Impaired loans are classified within Level 3 of the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory, and/or accounts receivable. Bancorp determines the value of the collateral based on independent appraisals performed by qualified licensed appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Appraised values are discounted for costs to sell and may be discounted further based on management’s historical knowledge, changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts by management are subjective and are typically significant unobservable inputs for determining fair value. As of March 31, 2016, total impaired loans with a valuation allowance were $2.0 million, and the specific allowance totaled $748 thousand, resulting in a fair value of $1.3 million, compared to total impaired loans with a valuation allowance of $2.6 million, and the specific allowance allocation totaling $544 thousand, resulting in a fair value of $2.1 million at December 31, 2015. Losses represent the change in specific allowances for the period indicated. Other real estate owned (“OREO”), which is carried at the lower of cost or fair value, is periodically assessed for impairment based on fair value at the reporting date. Fair value is based on appraisals performed by external parties which use judgments and assumptions that are property-specific and sensitive to changes in the overall economic environment. Appraisals may be further discounted based on management’s historical knowledge and/or changes in market conditions from the date of the most recent appraisal. Many of these inputs are not observable and, accordingly, these measurements are classified as Level 3. For OREO in the table below, fair value is the carrying value of only parcels of OREO which have a carrying value equal to appraised value. Losses represent write-downs which occurred during the period indicated. At March 31, 2016 and December 31, 2015, carrying value of all other real estate owned was $5.0 million and $4.5 million, respectively. Below are the carrying values of assets measured at fair value on a non-recurring basis. (in thousands) Fair value at March 31, 2016 Losses for 3 month period ended Total Level 1 Level 2 Level 3 March 31, 2016 Impaired loans $ 1,294 $ - $ - $ 1,294 $ (406 ) Other real estate owned 4,291 - - 4,291 - Total $ 5,585 $ - $ - $ 5,585 $ (406 ) (in thousands) Fair value at December 31, 2015 Losses for 3 month period ended Total Level 1 Level 2 Level 3 March 31, 2015 Impaired loans $ 2,058 $ - $ - $ 2,058 $ (206 ) Other real estate owned 3,782 - - 3,782 - Total $ 5,840 $ - $ - $ 5,840 $ (206 ) For the securities portfolio, Bancorp monitors the valuation technique utilized by pricing agencies to ascertain when transfers between levels have occurred. The nature of other assets and liabilities measured at fair value is such that transfers in and out of any level are expected to be rare. For the three months ended March 31, 2016, there were no transfers between Levels 1, 2, or 3. For Level 3 assets measured at fair value on a non-recurring basis as of March 31, 2016, the significant unobservable inputs used in the fair value measurements are presented below. Significant Weighted Fair Valuation unobservable average of (Dollars in thousands) Value technique input input Impaired loans - collateral dependent $ 1,294 Appraisal Appraisal discounts (%) 6.0 % Other real estate owned 4,291 Appraisal Appraisal discounts 17.6 |
Note 17 - Disclosure of Financi
Note 17 - Disclosure of Financial Instruments Not Reported at Fair Value | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | (17) Disclosure of Financial Instruments Not Reported at Fair Value US GAAP requires disclosure of the fair value of financial assets and liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or nonrecurring basis. Carrying amounts, estimated fair values, and placement in the fair value hierarchy of Bancorp’s financial instruments are as follows: (in thousands) Carrying March 31, 2016 amount Fair value Level 1 Level 2 Level 3 Financial assets Cash and short-term investments $ 48,038 $ 48,038 $ 48,038 $ - $ - Mortgage loans held for sale 3,984 4,119 - 4,119 - Federal Home Loan Bank stock and other securities 6,347 6,347 - 6,347 - Loans, net 2,072,037 2,095,613 - - 2,095,613 Accrued interest receivable 7,146 7,146 7,146 - - Financial liabilities Deposits 2,366,100 2,366,239 - - 2,366,239 Short-term borrowings 84,864 84,864 - 84,864 - FHLB advances 43,236 44,385 - 44,385 - Accrued interest payable 119 119 119 - - (in thousands) Carrying December 31, 2015 amount Fair value Level 1 Level 2 Level 3 Financial assets Cash and short-term investments $ 103,833 $ 103,833 $ 103,833 $ - $ - Mortgage loans held for sale 6,800 7,112 - 7,112 - Federal Home Loan Bank stock and other securities 6,347 6,347 - 6,347 - Loans, net 2,010,566 2,021,776 - - 2,021,776 Accrued interest receivable 6,610 6,610 6,610 - - Financial liabilities Deposits 2,371,702 2,371,300 - - 2,371,300 Short-term borrowings 87,003 87,003 - 87,003 - FHLB advances 43,468 43,647 - 43,647 - Accrued interest payable 127 127 127 - - Management used the following methods and assumptions to estimate the fair value of each class of financial instrument for which it is practicable to estimate the value. Cash, short-term investments, accrued interest receivable/payable and short-term borrowings For these short-term instruments, carrying amount is a reasonable estimate of fair value. Mortgage loans held for sale Mortgage loans held for sale are initially recorded at the lower of cost or market value. The portfolio is comprised of residential real estate loans and fair value is determined by market quotes for similar loans based on loan type, term, rate, size and the borrower’s credit score. Federal Home Loan Bank stock and other securities For these securities without readily available market values, carrying amount is a reasonable estimate of fair value as it equals the amount due from FHLB or other issuer at upon redemption. Loans, net US GAAP prescribes the exit price concept for estimating fair value of loans. Because there is not an active market (exit price) for trading virtually all types of loans in Bancorp’s portfolio, fair value of loans is estimated by discounting future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities (entrance price). Deposits Fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. Fair value of fixed-rate certificates of deposits is estimated by discounting future cash flows using the rates currently offered for deposits of similar remaining maturities. Federal Home Loan Bank advances Fair value of FHLB advances is estimated by discounting future cash flows using estimates of current market rate for instruments with similar terms and remaining maturities. Commitments to extend credit and standby letters of credit Fair values of commitments to extend credit are estimated using fees currently charged to enter into similar agreements and creditworthiness of customers. Fair values of standby letters of credit are based on fees currently charged for similar agreements or estimated cost to terminate them or otherwise settle obligations with counterparties at the reporting date. Fair value of commitments to extend credit, letters of credit and lines of credit is not presented since management believes the fair value to be insignificant. Limitations Fair value estimates are made at a specific point in time based on relevant market information and information about financial instruments. Because no market exists for a significant portion of Bancorp’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Therefore, calculated fair value estimates in many instances cannot be substantiated by comparison to independent markets and, in many cases, may not be realizable in a current sale of the instrument. Changes in assumptions could significantly affect estimates. |
Note 18 - Regulatory Matters
Note 18 - Regulatory Matters | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | (18) Regulatory Matters Bancorp and the Bank are subject to various capital requirements prescribed by banking regulations and administered by state and federal banking agencies. Under these requirements, Bancorp and the Bank must meet minimum amounts and percentages of Tier 1, common equity Tier 1, and total capital, as defined, to risk weighted assets and Tier 1 capital to average assets. Risk weighted assets are determined by applying certain risk weightings prescribed by the regulations to various categories of assets and off-balance sheet commitments. Capital and risk weighted assets may be further subject to qualitative judgments by regulators as to components, risk weighting and other factors. Failure to meet the capital requirements can result in certain mandatory, and possibly discretionary, corrective actions prescribed by the regulations or determined to be necessary by the regulators, which could materially affect the unaudited consolidated financial statements. In 2013, the Federal Reserve Board and the FDIC approved rules that substantially amended the regulatory risk-based capital rules applicable to Bancorp and Bank. The rules implemented the regulatory capital reforms of the Basel Committee on Banking Supervision reflected in "Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems" (Basel III) and changes required by the Dodd-Frank Act. The Basel III regulatory capital reforms became effective for Bancorp and Bank on January 1, 2015, and include new minimum risk-based capital and leverage ratios. Bancorp and the Bank met all capital requirements to which they were subject as of March 31, 2016. The following table sets forth consolidated Bancorp’s and the Bank’s risk based capital amounts and ratios as of March 31, 2016 and December 31, 2015. (Dollars in thousands) Actual Minimum for adequately capitalized Minimum for well capitalized March 31, 2016 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (1) Consolidated $ 313,931 13.19 % $ 190,405 8.00 % NA NA Bank 304,384 12.81 190,091 8.00 $ 237,614 10.00 % Common Equity Tier 1 risk-based capital Consolidated 291,093 12.23 107,107 4.50 NA NA Bank 281,546 11.85 106,916 4.50 142,555 6.00 Tier 1 risk-based capital (1) Consolidated 291,093 12.23 142,809 6.00 NA NA Bank 281,546 11.85 142,555 6.00 142,555 6.00 Leverage (2) Consolidated 291,093 10.35 112,500 4.00 NA NA Bank 281,546 10.02 112,394 4.00 140,492 5.00 (Dollars in thousands) Actual Minimum for adequately capitalized Minimum for well capitalized December 31, 2015 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (1) Consolidated $ 307,666 13.31 % $ 184,923 8.00 % NA NA Bank 298,129 12.91 184,743 8.00 $ 230,929 10.00 % Common Equity Tier 1 risk-based capital Consolidated 284,793 12.32 104,023 4.50 NA NA Bank 275,256 11.92 103,914 4.50 138,552 6.00 Tier 1 risk-based capital (1) Consolidated 284,793 12.32 138,698 6.00 NA NA Bank 275,256 11.92 138,552 6.00 138,552 6.00 Leverage (2) Consolidated 284,793 10.53 108,183 4.00 NA NA Bank 275,256 10.19 108,049 4.00 135,062 5.00 (1) Ratio is computed in relation to risk-weighted assets. (2) Ratio is computed in relation to average assets. NA Not applicable. Regulatory framework does not define well capitalized for holding companies. |
Note 19 - Subsequent Event
Note 19 - Subsequent Event | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | (19) Subsequent Event On April 29, 2016, Bancorp’s Board of Directors approved 3 for 2 stock split to be effected as a 50% stock dividend, payable on May 27, 2016 for shareholders of record on May 13, 2016. Based on our shares outstanding totaling 14,985,768 as of April 25, 2016, Bancorp expects this transaction to result in the issuance of approximately 7,490,000 additional shares. No share or per share amounts included in this Form 10-Q have been adjusted for this stock split. |
Note 2 - Securities (Tables)
Note 2 - Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | (in thousands) Amortized Unrealized Fair March 31, 2016 cost Gains Losses value Government sponsored enterprise obligations $ 333,470 $ 3,608 $ 162 $ 336,916 Mortgage-backed securities - government agencies 166,933 2,601 423 169,111 Obligations of states and political subdivisions 60,850 1,512 26 62,336 Corporate equity securities 653 - 4 649 Total securities available for sale $ 561,906 $ 7,721 $ 615 $ 569,012 December 31, 2015 U.S. Treasury and other U.S. Government obligations $ 79,999 $ 1 $ - $ 80,000 Government sponsored enterprise obligations 251,190 1,468 765 251,893 Mortgage-backed securities - government agencies 170,139 1,143 1,654 169,628 Obligations of states and political subdivisions 62,410 1,342 50 63,702 Corporate equity securities 653 - - 653 Total securities available for sale $ 564,391 $ 3,954 $ 2,469 $ 565,876 |
Investments Classified by Contractual Maturity Date [Table Text Block] | (in thousands) Amortized Fair Securities available-for-sale cost value Due within 1 year $ 115,644 $ 115,721 Due after 1 but within 5 years 139,936 141,921 Due after 5 but within 10 years 23,300 23,675 Due after 10 years 115,440 117,935 Mortgage-backed securities 166,933 169,111 Corporate equity securities 653 649 Total securities available-for-sale $ 561,906 $ 569,012 |
Schedule of Unrealized Loss on Investments [Table Text Block] | (in thousands) Less than 12 months 12 months or more Total March 31, 2016 Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses Government sponsored enterprise obligations $ 141,052 $ 90 $ 7,848 $ 72 $ 148,900 $ 162 Mortgage-backed securities - government agencies 7,917 31 28,823 392 36,740 423 Obligations of states and political subdivisions 5,054 15 1,339 11 6,393 26 Corporate equity securities 649 4 - - 649 4 Total temporarily impaired securities $ 154,672 $ 140 $ 38,010 $ 475 $ 192,682 $ 615 December 31, 2015 Government sponsored enterprise obligations $ 102,098 $ 500 $ 8,469 $ 265 $ 110,567 $ 765 Mortgage-backed securities - government agencies 49,774 662 29,936 992 79,710 1,654 Obligations of states and political subdivisions 13,225 31 1,955 19 15,180 50 Total temporarily impaired securities $ 165,097 $ 1,193 $ 40,360 $ 1,276 $ 205,457 $ 2,469 |
Note 3 - Loans (Tables)
Note 3 - Loans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (in thousands) March 31, 2016 December 31, 2015 Commercial and industrial $ 676,782 $ 644,398 Construction and development, excluding undeveloped land 139,148 134,482 Undeveloped land 21,519 21,185 Real estate mortgage: Commercial investment 496,647 482,639 Owner occupied commercial 372,811 375,016 1-4 family residential 234,199 226,575 Home equity - first lien 52,042 50,115 Home equity - junior lien 63,336 63,066 Subtotal: Real estate mortgage 1,219,035 1,197,411 Consumer 38,004 35,531 Total loans $ 2,094,488 $ 2,033,007 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | (in thousands) Type of loan March 31, 2016 Commercial industrial Construction and development excluding undeveloped land Undeveloped land Real estate mortgage Consumer Total Loans $ 676,782 $ 139,148 $ 21,519 $ 1,219,035 $ 38,004 $ 2,094,488 Loans collectively evaluated for impairment $ 672,059 $ 138,827 $ 21,519 $ 1,214,376 $ 37,906 $ 2,084,687 Loans individually evaluated for impairment $ 4,647 $ - $ - $ 4,173 $ 98 $ 8,918 Loans acquired with deteriorated credit quality $ 76 $ 321 $ - $ 486 $ - $ 883 Commercial industrial Construction and development excluding undeveloped land Undeveloped land Real estate mortgage Consumer Total Allowance for loan losses At December 31, 2015 $ 8,645 $ 1,760 $ 814 $ 10,875 $ 347 $ 22,441 Provision (credit) 813 159 94 (578 ) 12 500 Charge-offs (348 ) - - (203 ) (117 ) (668 ) Recoveries 32 10 - 20 116 178 At March 31, 2016 $ 9,142 $ 1,929 $ 908 $ 10,114 $ 358 $ 22,451 Allowance for loans collectively evaluated for impairment $ 8,760 $ 1,929 $ 908 $ 9,814 $ 292 $ 21,703 Allowance for loans individually evaluated for impairment $ 382 $ - $ - $ 300 $ 66 $ 748 Allowance for loans acquired with deteriorated credit quality $ - $ - $ - $ - $ - $ - (in thousands) Type of loan December 31, 2015 Commercial and industrial Construction and development excluding undeveloped land Undeveloped land Real estate mortgage Consumer Total Loans $ 644,398 $ 134,482 $ 21,185 $ 1,197,411 $ 35,531 $ 2,033,007 Loans collectively evaluated for impairment $ 639,760 $ 134,160 $ 21,185 $ 1,192,864 $ 35,463 $ 2,023,432 Loans individually evaluated for impairment $ 4,635 $ - $ - $ 4,050 $ 68 $ 8,753 Loans acquired with deteriorated credit quality $ 3 $ 322 $ - $ 497 $ - $ 822 Commercial and industrial Construction and development excluding undeveloped land Undeveloped land Real estate mortgage Consumer Total Allowance for loan losses At December 31, 2014 $ 11,819 $ 721 $ 1,545 $ 10,541 $ 294 $ 24,920 Provision (credit) 793 1,065 (2,131 ) 872 151 750 Charge-offs (4,065 ) (26 ) - (693 ) (597 ) (5,381 ) Recoveries 98 - 1,400 155 499 2,152 At December 31, 2015 $ 8,645 $ 1,760 $ 814 $ 10,875 $ 347 $ 22,441 Allowance for loans collectively evaluated for impairment $ 8,377 $ 1,760 $ 814 $ 10,667 $ 279 $ 21,897 Allowance for loans individually evaluated for impairment $ 268 $ - $ - $ 208 $ 68 $ 544 Allowance for loans acquired with deteriorated credit quality $ - $ - $ - $ - $ - $ - |
Schedule of Certain Loans Acquired in Transfer Not Accounted for As Debt Securities, Accretable Yield Movement [Table Text Block] | (in thousands) Accretable discount Non-accretable discount Balance at December 31, 2014 $ 62 $ 266 Accretion (59 ) (77 ) Reclassifications from (to) non-accretable discount - - Disposals - - Balance at December 31, 2015 $ 3 $ 189 Accretion (3 ) - Reclassifications from (to) non-accretable discount - - Disposals - - Balance at March 31, 2016 $ - $ 189 |
Impaired Financing Receivables [Table Text Block] | (in thousands) Unpaid Average Recorded principal Related recorded March 31, 2016 investment balance allowance investment Loans with no related allowance recorded: Commercial and industrial $ 3,544 $ 4,581 $ - $ 3,332 Construction and development, excluding undeveloped land - - - - Undeveloped land - - - - Real estate mortgage Commercial investment 204 204 - 241 Owner occupied commercial 1,693 2,132 - 1,718 1-4 family residential 1,115 1,115 - 1,011 Home equity - first lien - - - 7 Home equity - junior lien 289 289 - 191 Subtotal: Real estate mortgage 3,301 3,740 - 3,168 Consumer 32 32 - 16 Subtotal $ 6,877 $ 8,353 $ - $ 6,516 Loans with an allowance recorded: Commercial and industrial $ 1,103 $ 1,578 $ 382 $ 1,310 Construction and development, excluding undeveloped land - - - - Undeveloped land - - - - Real estate mortgage Commercial investment - - - - Owner occupied commercial 872 872 300 945 1-4 family residential - - - - Home equity - first lien - - - - Home equity - junior lien - - - - Subtotal: Real estate mortgage 872 872 300 945 Consumer 66 66 66 67 Subtotal $ 2,041 $ 2,516 $ 748 $ 2,322 Total: Commercial and industrial $ 4,647 $ 6,159 $ 382 $ 4,642 Construction and development, excluding undeveloped land - - - - Undeveloped land - - - - Real estate mortgage - - - - Commercial investment 204 204 - 241 Owner occupied commercial 2,565 3,004 300 2,663 1-4 family residential 1,115 1,115 - 1,011 Home equity - first lien - - - 7 Home equity - junior lien 289 289 - 191 Subtotal: Real estate mortgage 4,173 4,612 300 4,113 Consumer 98 98 66 83 Total $ 8,918 $ 10,869 $ 748 $ 8,838 (in thousands) Unpaid Average Recorded principal Related recorded December 31, 2015 investment balance allowance investment Loans with no related allowance recorded: Commercial and industrial $ 3,119 $ 3,859 $ - $ 1,414 Construction and development, excluding undeveloped land - 151 - 21 Undeveloped land - - - - Real estate mortgage Commercial investment 278 278 - 178 Owner occupied commercial 1,743 2,713 - 1,622 1-4 family residential 906 906 - 661 Home equity - first lien 13 13 - 37 Home equity - junior lien 92 92 - 69 Subtotal: Real estate mortgage 3,032 4,002 - 2,567 Consumer - - - 3 Subtotal $ 6,151 $ 8,012 $ - $ 4,005 Loans with an allowance recorded: Commercial and industrial $ 1,516 $ 3,087 $ 268 $ 4,612 Construction and development, excluding undeveloped land - - - 368 Undeveloped land - - - - Real estate mortgage Commercial investment - - - 92 Owner occupied commercial 1,018 1,018 208 1,266 1-4 family residential - - - 188 Home equity - first lien - - - - Home equity - junior lien - - - - Subtotal: Real estate mortgage 1,018 1,018 208 1,546 Consumer 68 68 68 72 Subtotal $ 2,602 $ 4,173 $ 544 $ 6,598 Total: Commercial and industrial $ 4,635 $ 6,946 $ 268 $ 6,026 Construction and development, excluding undeveloped land - 151 - 389 Undeveloped land - - - - Real estate mortgage - - - - Commercial investment 278 278 - 270 Owner occupied commercial 2,761 3,731 208 2,888 1-4 family residential 906 906 - 849 Home equity - first lien 13 13 - 37 Home equity - junior lien 92 92 - 69 Subtotal: Real estate mortgage 4,050 5,020 208 4,113 Consumer 68 68 68 75 Total $ 8,753 $ 12,185 $ 544 $ 10,603 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | (in thousands) March 31, 2016 December 31, 2015 Commercial and industrial $ 3,673 $ 3,643 Construction and development, excluding undeveloped land - - Undeveloped land - - Real estate mortgage Commercial investment 204 278 Owner occupied commercial 2,565 2,761 1-4 family residential 1,115 906 Home equity - first lien - 13 Home equity - junior lien 289 92 Subtotal: Real estate mortgage 4,173 4,050 Consumer 32 - Total $ 7,878 $ 7,693 |
Past Due Financing Receivables [Table Text Block] | 90 or more Recorded (in thousands) days past investment due > 90 days 30-59 days 60-89 days (includes) Total Total and March 31, 2016 past due past due non-accrual) past due Current loans accruing Commercial and industrial $ 654 $ 37 $ 3,673 $ 4,364 $ 672,418 $ 676,782 $ - Construction and development, excluding undeveloped land - - - - 139,148 139,148 - Undeveloped land 1,859 - - 1,859 19,660 21,519 - Real estate mortgage Commercial investment 315 278 204 797 495,850 496,647 - Owner occupied commercial 1,495 95 2,565 4,155 368,656 372,811 - 1-4 family residential 626 193 1,115 1,934 232,265 234,199 - Home equity - first lien - - - - 52,042 52,042 - Home equity - junior lien 129 120 289 538 62,798 63,336 - Subtotal: Real estate mortgage 2,565 686 4,173 7,424 1,211,611 1,219,035 - Consumer 224 5 32 261 37,743 38,004 - Total $ 5,302 $ 728 $ 7,878 $ 13,908 $ 2,080,580 $ 2,094,488 $ - December 31, 2015 Commercial and industrial $ 238 $ 327 $ 3,643 $ 4,208 $ 640,190 $ 644,398 $ - Construction and development, excluding undeveloped land - - - - 134,482 134,482 - Undeveloped land - - - - 21,185 21,185 - Real estate mortgage Commercial investment 290 140 278 708 481,931 482,639 - Owner occupied commercial - - 2,761 2,761 372,255 375,016 - 1-4 family residential 1,147 94 1,082 2,323 224,252 226,575 176 Home equity - first lien 35 51 13 99 50,016 50,115 - Home equity - junior lien 285 173 92 550 62,516 63,066 - Subtotal: Real estate mortgage 1,757 458 4,226 6,441 1,190,970 1,197,411 176 Consumer 343 8 - 351 35,180 35,531 - Total $ 2,338 $ 793 $ 7,869 $ 11,000 $ 2,022,007 $ 2,033,007 $ 176 |
Financing Receivable Credit Quality Indicators [Table Text Block] | (in thousands) Substandard Total March 31, 2016 Pass OAEM Substandard non-performing Doubtful loans Commercial and industrial $ 642,042 $ 22,907 $ 7,186 $ 4,647 $ - $ 676,782 Construction and development, excluding undeveloped land 137,924 - 1,224 - - 139,148 Undeveloped land 20,854 - 665 - - 21,519 Real estate mortgage Commercial investment 494,426 1,950 67 204 - 496,647 Owner occupied commercial 354,090 12,591 3,565 2,565 - 372,811 1-4 family residential 232,502 582 - 1,115 - 234,199 Home equity - first lien 52,042 - - - - 52,042 Home equity - junior lien 62,997 50 - 289 - 63,336 Subtotal: Real estate mortgage 1,196,057 15,173 3,632 4,173 - 1,219,035 Consumer 37,906 - - 98 - 38,004 Total $ 2,034,783 $ 38,080 $ 12,707 $ 8,918 $ - $ 2,094,488 December 31, 2015 Commercial and industrial $ 612,853 $ 19,672 $ 7,238 $ 4,635 $ - $ 644,398 Construction and development, excluding undeveloped land 133,342 773 367 - - 134,482 Undeveloped land 20,513 517 155 - - 21,185 Real estate mortgage Commercial investment 480,178 2,183 - 278 - 482,639 Owner occupied commercial 351,707 17,135 3,413 2,761 - 375,016 1-4 family residential 224,645 848 - 1,082 - 226,575 Home equity - first lien 50,102 - - 13 - 50,115 Home equity - junior lien 62,924 50 - 92 - 63,066 Subtotal: Real estate mortgage 1,169,556 20,216 3,413 4,226 - 1,197,411 Consumer 35,463 - - 68 - 35,531 Total $ 1,971,727 $ 41,178 $ 11,173 $ 8,929 $ - $ 2,033,007 |
Note 5 - Federal Home Loan Ba31
Note 5 - Federal Home Loan Bank Advances (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Maturities and Average Effective Interest Rates of Federal Home Loan Bank Advances [Table Text Block] | (In thousands) March 31, 2016 December 31, 2015 Year Advance Fixed Rate Advance Fixed Rate 2016 $ 30,000 0.59 % $ 30,000 0.55 % 2020 1,826 2.23 1,838 2.23 2021 411 2.12 429 2.12 2024 2,815 2.36 2,865 2.36 2025 6,849 2.44 6,991 2.44 2028 1,335 1.48 1,345 1.48 Total $ 43,236 1.11 % $ 43,468 1.09 % |
Note 6 - Other Comprehensive 32
Note 6 - Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Net unrealized Net unrealized Minimum gains on gains (losses) pension securities on cash liability (in thousands) available-for-sale flow hedges adjustment Total Balance at December 31, 2014 $ 2,456 $ 16 $ (387 ) $ 2,085 Other comprehensive income (loss) 1,880 (19 ) - 1,861 Net current period other comprehensive income (loss) 1,880 (19 ) - 1,861 Balance at March 31, 2015 $ 4,336 $ (3 ) $ (387 ) $ 3,946 Balance at December 31, 2015 $ 965 $ (60 ) $ (273 ) $ 632 Other comprehensive income (loss) 3,653 (339 ) - 3,314 Net current period other comprehensive income (loss) 3,653 (339 ) - 3,314 Balance at March 31, 2016 $ 4,618 $ (399 ) $ (273 ) $ 3,946 |
Note 7 - Derivative Financial33
Note 7 - Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Designated as Hedging Instrument [Member] | |
Notes Tables | |
Schedule of Interest Rate Derivatives [Table Text Block] | (dollars in thousands) Fair value Fair value Notional Maturity Receive (variable) Pay fixed March 31, December 31, amount date index swap rate 2016 2015 $ 10,000 12/6/2016 US 3 Month LIBOR 0.72 % $ (1 ) $ 8 20,000 12/6/2020 US 3 Month LIBOR 1.79 % (614 ) (101 ) $ 30,000 1.43 % $ (615 ) $ (93 ) |
Not Designated as Hedging Instrument [Member] | |
Notes Tables | |
Schedule of Interest Rate Derivatives [Table Text Block] | (dollar amounts in thousands) Receiving Paying March 31, December 31, March 31, December 31, 2016 2015 2016 2015 Notional amount $ 20,560 $ 10,788 $ 20,560 $ 10,788 Weighted average maturity (years) 6.8 6.9 6.8 6.9 Fair value $ (944 ) $ (461 ) $ 944 $ 461 |
Note 8 - Goodwill and Intangi34
Note 8 - Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets [Table Text Block] | For three months ended March 31, (in thousands) 2016 2015 Balance at beginning of period $ 1,018 $ 1,131 Additions for mortgage loans sold 29 116 Amortization (58 ) (180 ) Balance at March 31 $ 989 $ 1,067 |
Note 12 - Stock-based Compens35
Note 12 - Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | For three months ended March 31, (in thousands) 2016 2015 Stock-based compensation expense before income taxes $ 513 $ 501 Less: deferred tax benefit (180 ) (176 ) Reduction of net income $ 333 $ 325 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award Fair Value Assumptions and Methodology [Table Text Block] | 2016 2015 Dividend yield 2.94 % 2.97 % Expected volatility 19.31 % 22.81 % Risk free interest rate 1.70 % 1.91 % Expected life of SARs (years) 7.3 7.5 |
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity [Table Text Block] | Weighted Weighted Aggregate Weighted average Options average intrinsic average remaining and SARs Exercise exercise value fair contractual (in thousands) price price (in thousands) value life (in years) At December 31, 2015 Vested and exercisable 437 $ 21.03-29.16 $ 23.62 $ 6,191 $ 5.09 3.7 Unvested 177 22.86-36.83 27.99 1,733 4.93 7.7 Total outstanding 614 21.03-36.83 24.88 7,924 5.04 4.8 Granted 58 38.63 38.63 - 5.33 Exercised (26 ) 24.07-26.83 26.14 293 6.06 Forfeited - - - - - At March 31, 2016 Vested and exercisable 472 21.03-34.43 23.81 6,952 4.99 4.0 Unvested 174 22.86-38.63 32.21 1,105 5.15 8.5 Total outstanding 646 21.03-38.63 26.07 $ 8,057 5.03 5.2 Vested year-to-date 61 22.86-34.43 26.14 $ 753 4.70 |
Schedule of Nonvested Share Activity [Table Text Block] | Grant date weighted- Number average cost Unvested at December 31, 2014 114,093 $ 24.95 Shares awarded 35,265 34.48 Restrictions lapsed and shares released to employees (40,510 ) 23.84 Shares forfeited (4,649 ) 28.46 Unvested at December 31, 2015 104,199 $ 28.46 Shares awarded 33,630 38.63 Restrictions lapsed and shares released to employees (31,456 ) 26.78 Shares forfeited (4,040 ) 29.47 Unvested at March 31, 2016 102,333 $ 32.28 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Vesting Expected Grant period Fair shares to year in years value be awarded 2014 3 $ 26.42 33,349 2015 3 30.03 21,258 2016 3 33.92 18,442 |
Note 13 - Net Income Per Share
Note 13 - Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended (In thousands, except per share data) March 31 2016 2015 Net income $ 9,835 $ 9,255 Average shares outstanding 14,836 14,647 Dilutive securities 225 205 Average shares outstanding including dilutive securities including dilutive securities 15,061 14,852 Net income per share, basic $ 0.66 $ 0.63 Net income per share, diluted $ 0.65 $ 0.62 |
Note 14 - Segments (Tables)
Note 14 - Segments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Investment Commercial management (in thousands) banking and trust Total Three months ended March 31, 2016 Net interest income $ 23,407 $ 62 $ 23,469 Provision for loan losses 500 - 500 Investment management and trust revenue - 4,612 4,612 All other non-interest income 5,470 - 5,470 Non-interest expense 16,895 2,645 19,540 Income before income taxes 11,482 2,029 13,511 Tax expense 2,951 725 3,676 Net income $ 8,531 $ 1,304 $ 9,835 Three months ended March 31, 2015 Net interest income $ 21,560 $ 54 $ 21,614 Provision for loan losses - - - Investment management and trust revenue - 4,552 4,552 All other non-interest income 5,121 - 5,121 Non-interest expense 15,191 2,588 17,779 Income before income taxes 11,490 2,018 13,508 Tax expense 3,534 719 4,253 Net income $ 7,956 $ 1,299 $ 9,255 |
Note 15 - Income Taxes (Tables)
Note 15 - Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Three months ended March 31, (in thousands) 2015 2014 Current tax expense Federal $ 2,373 $ 3,076 State 124 87 Total current tax expense 2,497 3,163 Deferred tax expense Federal 1,101 984 State 78 106 Total deferred tax expense 1,179 1,090 Total income tax expense $ 3,676 $ 4,253 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Three months ended March 31, 2016 2015 U.S. federal statutory tax rate 35.0 % 35.0 % Tax credits (9.7 ) (2.4 ) Tax exempt interest income (1.3 ) (1.4 ) Cash surrender value of life insurance (0.8 ) (1.0 ) State income taxes 1.0 0.9 Other, net 3.0 0.4 Effective tax rate 27.2 % 31.5 % |
Note 16 - Assets and Liabilit39
Note 16 - Assets and Liabilities Measured and Reported at Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | (in thousands) Fair value at March 31, 2016 Assets Total Level 1 Level 2 Level 3 Investment securities available-for-sale Government sponsored enterprise obligations $ 336,916 $ - $ 336,916 $ - Mortgage-backed securities - government agencies 169,111 - 169,111 - Obligations of states and political subdivisions 62,336 - 62,336 - Corporate equity securities 649 649 - - Total investment securities available-for-sale 569,012 649 568,363 - Interest rate swaps 944 - 944 - Total assets $ 569,956 $ 649 $ 569,307 $ - Liabilities Interest rate swaps $ 1,559 $ - $ 1,559 $ - (in thousands) Fair value at December 31, 2015 Assets Total Level 1 Level 2 Level 3 Investment securities available-for-sale U.S. Treasury and other U.S. government obligations $ 80,000 $ 80,000 $ - $ - Government sponsored enterprise obligations 251,893 - 251,893 - Mortgage-backed securities - government agencies 169,628 - 169,628 - Obligations of states and political subdivisions 63,702 - 63,702 - Corporate equity securities 653 653 - - Total investment securities available-for-sale 565,876 80,653 485,223 - Interest rate swaps 461 - 461 - Total assets $ 566,337 $ 80,653 $ 485,684 $ - Liabilities Interest rate swaps $ 554 $ - $ 554 $ - |
Fair Value Measurements, Nonrecurring [Table Text Block] | (in thousands) Fair value at March 31, 2016 Losses for 3 month period ended Total Level 1 Level 2 Level 3 March 31, 2016 Impaired loans $ 1,294 $ - $ - $ 1,294 $ (406 ) Other real estate owned 4,291 - - 4,291 - Total $ 5,585 $ - $ - $ 5,585 $ (406 ) (in thousands) Fair value at December 31, 2015 Losses for 3 month period ended Total Level 1 Level 2 Level 3 March 31, 2015 Impaired loans $ 2,058 $ - $ - $ 2,058 $ (206 ) Other real estate owned 3,782 - - 3,782 - Total $ 5,840 $ - $ - $ 5,840 $ (206 ) |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | Significant Weighted Fair Valuation unobservable average of (Dollars in thousands) Value technique input input Impaired loans - collateral dependent $ 1,294 Appraisal Appraisal discounts (%) 6.0 % Other real estate owned 4,291 Appraisal Appraisal discounts 17.6 |
Note 17 - Disclosure of Finan40
Note 17 - Disclosure of Financial Instruments Not Reported at Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | (in thousands) Carrying March 31, 2016 amount Fair value Level 1 Level 2 Level 3 Financial assets Cash and short-term investments $ 48,038 $ 48,038 $ 48,038 $ - $ - Mortgage loans held for sale 3,984 4,119 - 4,119 - Federal Home Loan Bank stock and other securities 6,347 6,347 - 6,347 - Loans, net 2,072,037 2,095,613 - - 2,095,613 Accrued interest receivable 7,146 7,146 7,146 - - Financial liabilities Deposits 2,366,100 2,366,239 - - 2,366,239 Short-term borrowings 84,864 84,864 - 84,864 - FHLB advances 43,236 44,385 - 44,385 - Accrued interest payable 119 119 119 - - (in thousands) Carrying December 31, 2015 amount Fair value Level 1 Level 2 Level 3 Financial assets Cash and short-term investments $ 103,833 $ 103,833 $ 103,833 $ - $ - Mortgage loans held for sale 6,800 7,112 - 7,112 - Federal Home Loan Bank stock and other securities 6,347 6,347 - 6,347 - Loans, net 2,010,566 2,021,776 - - 2,021,776 Accrued interest receivable 6,610 6,610 6,610 - - Financial liabilities Deposits 2,371,702 2,371,300 - - 2,371,300 Short-term borrowings 87,003 87,003 - 87,003 - FHLB advances 43,468 43,647 - 43,647 - Accrued interest payable 127 127 127 - - |
Note 18 - Regulatory Matters (T
Note 18 - Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | (Dollars in thousands) Actual Minimum for adequately capitalized Minimum for well capitalized March 31, 2016 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (1) Consolidated $ 313,931 13.19 % $ 190,405 8.00 % NA NA Bank 304,384 12.81 190,091 8.00 $ 237,614 10.00 % Common Equity Tier 1 risk-based capital Consolidated 291,093 12.23 107,107 4.50 NA NA Bank 281,546 11.85 106,916 4.50 142,555 6.00 Tier 1 risk-based capital (1) Consolidated 291,093 12.23 142,809 6.00 NA NA Bank 281,546 11.85 142,555 6.00 142,555 6.00 Leverage (2) Consolidated 291,093 10.35 112,500 4.00 NA NA Bank 281,546 10.02 112,394 4.00 140,492 5.00 (Dollars in thousands) Actual Minimum for adequately capitalized Minimum for well capitalized December 31, 2015 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (1) Consolidated $ 307,666 13.31 % $ 184,923 8.00 % NA NA Bank 298,129 12.91 184,743 8.00 $ 230,929 10.00 % Common Equity Tier 1 risk-based capital Consolidated 284,793 12.32 104,023 4.50 NA NA Bank 275,256 11.92 103,914 4.50 138,552 6.00 Tier 1 risk-based capital (1) Consolidated 284,793 12.32 138,698 6.00 NA NA Bank 275,256 11.92 138,552 6.00 138,552 6.00 Leverage (2) Consolidated 284,793 10.53 108,183 4.00 NA NA Bank 275,256 10.19 108,049 4.00 135,062 5.00 |
Note 1 - Summary of Significa42
Note 1 - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended |
Mar. 31, 2016 | |
Period Look-back, Quarters | 12 |
Period Look-back, Extended, Quarters | 24 |
Note 2 - Securities (Details Te
Note 2 - Securities (Details Textual) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Held-to-maturity Securities | $ 0 | $ 0 | |
Number of Securities Sold | 0 | ||
Proceeds from Sale of Available-for-sale Securities | $ 5,934,000 | 5,900,000 | |
Available-for-sale Securities, Gross Realized Gains | 0 | ||
Available-for-sale Securities, Gross Realized Losses | 0 | ||
Available-for-sale Securities Pledged as Collateral | $ 337,800,000 | $ 380,700,000 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 37 | 70 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 0 |
Note 2 - Securities - Available
Note 2 - Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Amortized cost | $ 333,470 | $ 251,190 |
Unrealized Gains | 3,608 | 1,468 |
Unrealized Losses | 162 | 765 |
Fair value | 336,916 | 251,893 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Amortized cost | 166,933 | 170,139 |
Unrealized Gains | 2,601 | 1,143 |
Unrealized Losses | 423 | 1,654 |
Fair value | 169,111 | 169,628 |
US States and Political Subdivisions Debt Securities [Member] | ||
Amortized cost | 60,850 | 62,410 |
Unrealized Gains | 1,512 | 1,342 |
Unrealized Losses | 26 | 50 |
Fair value | 62,336 | 63,702 |
Common Stock [Member] | ||
Amortized cost | $ 653 | $ 653 |
Unrealized Gains | ||
Unrealized Losses | $ 4 | |
Fair value | 649 | $ 653 |
US Treasury Securities [Member] | ||
Amortized cost | 79,999 | |
Unrealized Gains | $ 1 | |
Unrealized Losses | ||
Fair value | $ 80,000 | |
Amortized cost | 561,906 | 564,391 |
Unrealized Gains | 7,721 | 3,954 |
Unrealized Losses | 615 | 2,469 |
Fair value | $ 569,012 | $ 565,876 |
Note 2 - Securities - Availab45
Note 2 - Securities - Available-for-sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Due within 1 year | $ 115,644 | |
Due within 1 year | 115,721 | |
Due after 1 but within 5 years | 139,936 | |
Due after 1 but within 5 years | 141,921 | |
Due after 5 but within 10 years | 23,300 | |
Due after 5 but within 10 years | 23,675 | |
Due after 10 years | 115,440 | |
Due after 10 years | 117,935 | |
Mortgage-backed securities | 166,933 | |
Mortgage-backed securities | 169,111 | |
Corporate equity securities | 653 | |
Corporate equity securities | 649 | |
Amortized cost | 561,906 | $ 564,391 |
Total securities available-for-sale | $ 569,012 | $ 565,876 |
Note 2 - Securities - Securitie
Note 2 - Securities - Securities With Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Less than 12 months, fair value | $ 141,052 | $ 102,098 |
Less than 12 months, Unrealized losses | 90 | 500 |
12 months or more, Fair value | 7,848 | 8,469 |
12 months or more, Unrealized losses | 72 | 265 |
Fair value | 148,900 | 110,567 |
Unrealized losses | 162 | 765 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Less than 12 months, fair value | 7,917 | 49,774 |
Less than 12 months, Unrealized losses | 31 | 662 |
12 months or more, Fair value | 28,823 | 29,936 |
12 months or more, Unrealized losses | 392 | 992 |
Fair value | 36,740 | 79,710 |
Unrealized losses | 423 | 1,654 |
US States and Political Subdivisions Debt Securities [Member] | ||
Less than 12 months, fair value | 5,054 | 13,225 |
Less than 12 months, Unrealized losses | 15 | 31 |
12 months or more, Fair value | 1,339 | 1,955 |
12 months or more, Unrealized losses | 11 | 19 |
Fair value | 6,393 | 15,180 |
Unrealized losses | 26 | 50 |
Common Stock [Member] | ||
Less than 12 months, fair value | 649 | |
Less than 12 months, Unrealized losses | $ 4 | |
12 months or more, Fair value | ||
12 months or more, Unrealized losses | ||
Fair value | $ 649 | |
Unrealized losses | 4 | |
Less than 12 months, fair value | 154,672 | 165,097 |
Less than 12 months, Unrealized losses | 140 | 1,193 |
12 months or more, Fair value | 38,010 | 40,360 |
12 months or more, Unrealized losses | 475 | 1,276 |
Fair value | 192,682 | 205,457 |
Unrealized losses | $ 615 | $ 2,469 |
Note 3 - Loans (Details Textual
Note 3 - Loans (Details Textual) | 3 Months Ended | ||
Mar. 31, 2016USD ($) | Mar. 31, 2015 | Dec. 31, 2015USD ($) | |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 0 | $ 176,000 | |
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 | |
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 0 | 0 | |
Financing Receivable, Modifications, Recorded Investment | 1,000,000 | 1,100,000 | |
Allowance for Credit Losses, Change in Method of Calculating Impairment | $ 330,000 | $ 177,000 |
Note 3 - Loans - Loans by Loan
Note 3 - Loans - Loans by Loan Portfolio Class (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Commercial and Industrial Portfolio Segment [Member] | ||
Loans | $ 676,782 | $ 644,398 |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | ||
Loans | 139,148 | 134,482 |
Undevelopment Land Portfolio Segment [Member] | ||
Loans | 21,519 | 21,185 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Investment [Member] | ||
Loans | 496,647 | 482,639 |
Real Estate Mortgage Portfolio Segment [Member] | Owner Occupied Commercial [Member] | ||
Loans | 372,811 | 375,016 |
Real Estate Mortgage Portfolio Segment [Member] | One to Four Family Residential [Member] | ||
Loans | 234,199 | 226,575 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity First Lien [Member] | ||
Loans | 52,042 | 50,115 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity Junior Lien [Member] | ||
Loans | 63,336 | 63,066 |
Real Estate Mortgage Portfolio Segment [Member] | ||
Loans | 1,219,035 | 1,197,411 |
Consumer Portfolio Segment [Member] | ||
Loans | 38,004 | 35,531 |
Loans | $ 2,094,488 | $ 2,033,007 |
Note 3 - Loans - Allowance for
Note 3 - Loans - Allowance for Loan Losses by Portfolio Segment and Based on Impairment Evaluation Method (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Commercial and Industrial Portfolio Segment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Loans | $ 76 | $ 3 | |||
Balance, beginning | |||||
Balance, ending | |||||
Allowance for loans acquired with deteriorated credit quality | |||||
Commercial and Industrial Portfolio Segment [Member] | |||||
Loans | $ 676,782 | $ 644,398 | |||
Loans collectively evaluated for impairment | 672,059 | 639,760 | |||
Loans individually evaluated for impairment | 4,647 | 4,635 | |||
Balance, beginning | $ 8,645 | $ 11,819 | $ 11,819 | ||
Provision for loan losses | 813 | 793 | |||
Charge-offs | (348) | (4,065) | |||
Recoveries | 32 | 98 | |||
Balance, ending | 9,142 | 8,645 | |||
Allowance for loans collectively evaluated for impairment | 8,760 | 8,377 | |||
Allowance for loans individually evaluated for impairment | 382 | 268 | |||
Allowance for loans acquired with deteriorated credit quality | $ 8,645 | 11,819 | $ 8,645 | 9,142 | 8,645 |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Loans | $ 321 | $ 322 | |||
Balance, beginning | |||||
Balance, ending | |||||
Allowance for loans acquired with deteriorated credit quality | |||||
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | |||||
Loans | $ 139,148 | $ 134,482 | |||
Loans collectively evaluated for impairment | $ 138,827 | $ 134,160 | |||
Loans individually evaluated for impairment | |||||
Balance, beginning | $ 1,760 | 721 | $ 721 | ||
Provision for loan losses | $ 159 | 1,065 | |||
Charge-offs | $ (26) | ||||
Recoveries | $ 10 | ||||
Balance, ending | 1,929 | $ 1,760 | |||
Allowance for loans collectively evaluated for impairment | $ 1,929 | $ 1,760 | |||
Allowance for loans individually evaluated for impairment | |||||
Allowance for loans acquired with deteriorated credit quality | $ 1,760 | 721 | $ 1,760 | $ 1,929 | $ 1,760 |
Undevelopment Land Portfolio Segment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Loans | |||||
Balance, beginning | |||||
Balance, ending | |||||
Allowance for loans acquired with deteriorated credit quality | |||||
Undevelopment Land Portfolio Segment [Member] | |||||
Loans | $ 21,519 | $ 21,185 | |||
Loans collectively evaluated for impairment | $ 21,519 | $ 21,185 | |||
Loans individually evaluated for impairment | |||||
Balance, beginning | $ 814 | 1,545 | $ 1,545 | ||
Provision for loan losses | $ 94 | $ (2,131) | |||
Charge-offs | |||||
Recoveries | $ 1,400 | ||||
Balance, ending | $ 908 | 814 | |||
Allowance for loans collectively evaluated for impairment | $ 908 | $ 814 | |||
Allowance for loans individually evaluated for impairment | |||||
Allowance for loans acquired with deteriorated credit quality | $ 814 | 1,545 | $ 814 | $ 908 | $ 814 |
Real Estate Mortgage Portfolio Segment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Loans | $ 486 | $ 497 | |||
Balance, beginning | |||||
Balance, ending | |||||
Allowance for loans acquired with deteriorated credit quality | |||||
Real Estate Mortgage Portfolio Segment [Member] | |||||
Loans | $ 1,219,035 | $ 1,197,411 | |||
Loans collectively evaluated for impairment | 1,214,376 | 1,192,864 | |||
Loans individually evaluated for impairment | 4,173 | 4,050 | |||
Balance, beginning | $ 10,875 | 10,541 | $ 10,541 | ||
Provision for loan losses | (578) | 872 | |||
Charge-offs | (203) | (693) | |||
Recoveries | 20 | 155 | |||
Balance, ending | 10,114 | 10,875 | |||
Allowance for loans collectively evaluated for impairment | 9,814 | 10,667 | |||
Allowance for loans individually evaluated for impairment | 300 | 208 | |||
Allowance for loans acquired with deteriorated credit quality | $ 10,875 | 10,541 | $ 10,875 | $ 10,114 | $ 10,875 |
Consumer Portfolio Segment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Loans | |||||
Balance, beginning | |||||
Balance, ending | |||||
Allowance for loans acquired with deteriorated credit quality | |||||
Consumer Portfolio Segment [Member] | |||||
Loans | $ 38,004 | $ 35,531 | |||
Loans collectively evaluated for impairment | 37,906 | 35,463 | |||
Loans individually evaluated for impairment | 98 | 68 | |||
Balance, beginning | $ 347 | 294 | $ 294 | ||
Provision for loan losses | 12 | 151 | |||
Charge-offs | (117) | (597) | |||
Recoveries | 116 | 499 | |||
Balance, ending | 358 | 347 | |||
Allowance for loans collectively evaluated for impairment | 292 | 279 | |||
Allowance for loans individually evaluated for impairment | 66 | 68 | |||
Allowance for loans acquired with deteriorated credit quality | $ 347 | 294 | $ 347 | 358 | 347 |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Loans | $ 883 | $ 822 | |||
Balance, beginning | |||||
Balance, ending | |||||
Allowance for loans acquired with deteriorated credit quality | |||||
Loans | $ 2,094,488 | $ 2,033,007 | |||
Loans collectively evaluated for impairment | 2,084,687 | 2,023,432 | |||
Loans individually evaluated for impairment | 8,918 | 8,753 | |||
Balance, beginning | $ 22,441 | $ 24,920 | $ 24,920 | ||
Provision for loan losses | 500 | 750 | |||
Charge-offs | (668) | (5,381) | |||
Recoveries | 178 | 2,152 | |||
Balance, ending | 22,451 | 22,441 | |||
Allowance for loans collectively evaluated for impairment | 21,703 | 21,897 | |||
Allowance for loans individually evaluated for impairment | 748 | 544 | |||
Allowance for loans acquired with deteriorated credit quality | $ 22,451 | $ 24,920 | $ 22,441 | $ 22,451 | $ 22,441 |
Note 3 - Loans - Acquired Impai
Note 3 - Loans - Acquired Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Accretable discount | $ 3 | $ 62 |
Non- accretable discount | 189 | 266 |
Accretion | $ (3) | (59) |
Non- accretable discount, accretion | (77) | |
Accretable discount | 3 | |
Non- accretable discount | $ 189 | $ 189 |
Note 3 - Loans - Loans Individu
Note 3 - Loans - Loans Individually Evaluated for Impairment (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Commercial and Industrial Portfolio Segment [Member] | ||
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | $ 3,544,000 | $ 3,119,000 |
Loans with no related allowance recorded, unpaid principal balance | 4,581,000 | 3,859,000 |
Loans with no related allowance recorded, average recorded investment | 3,332,000 | 1,414,000 |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | 1,103,000 | 1,516,000 |
Loans with an allowance recorded, unpaid principal balance | 1,578,000 | 3,087,000 |
Related allowance | 382,000 | 268,000 |
Loans with an allowance recorded, average recorded investment | 1,310,000 | 4,612,000 |
Total: | ||
Recorded investment | 4,647,000 | 4,635,000 |
Unpaid principal balance | 6,159,000 | 6,946,000 |
Related allowance | 382,000 | 268,000 |
Average recorded investment | $ 4,642,000 | $ 6,026,000 |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | ||
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | ||
Loans with no related allowance recorded, unpaid principal balance | $ 151,000 | |
Loans with no related allowance recorded, average recorded investment | $ 21,000 | |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | ||
Loans with an allowance recorded, unpaid principal balance | ||
Related allowance | ||
Loans with an allowance recorded, average recorded investment | $ 368,000 | |
Total: | ||
Recorded investment | ||
Unpaid principal balance | $ 151,000 | |
Related allowance | ||
Average recorded investment | $ 389,000 | |
Undevelopment Land Portfolio Segment [Member] | ||
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | ||
Loans with no related allowance recorded, unpaid principal balance | ||
Loans with no related allowance recorded, average recorded investment | ||
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | ||
Loans with an allowance recorded, unpaid principal balance | ||
Related allowance | ||
Loans with an allowance recorded, average recorded investment | ||
Total: | ||
Recorded investment | ||
Unpaid principal balance | ||
Related allowance | ||
Average recorded investment | ||
Real Estate Mortgage Portfolio Segment [Member] | Commercial Investment [Member] | ||
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | $ 204,000 | $ 278,000 |
Loans with no related allowance recorded, unpaid principal balance | 204,000 | 278,000 |
Loans with no related allowance recorded, average recorded investment | $ 241,000 | $ 178,000 |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | ||
Loans with an allowance recorded, unpaid principal balance | ||
Related allowance | ||
Loans with an allowance recorded, average recorded investment | $ 92,000 | |
Total: | ||
Recorded investment | $ 204,000 | 278,000 |
Unpaid principal balance | $ 204,000 | $ 278,000 |
Related allowance | ||
Average recorded investment | $ 241,000 | $ 270,000 |
Real Estate Mortgage Portfolio Segment [Member] | Owner Occupied Commercial [Member] | ||
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 1,693,000 | 1,743,000 |
Loans with no related allowance recorded, unpaid principal balance | 2,132,000 | 2,713,000 |
Loans with no related allowance recorded, average recorded investment | 1,718,000 | 1,622,000 |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | 872,000 | 1,018,000 |
Loans with an allowance recorded, unpaid principal balance | 872,000 | 1,018,000 |
Related allowance | 300,000 | 208,000 |
Loans with an allowance recorded, average recorded investment | 945,000 | 1,266,000 |
Total: | ||
Recorded investment | 2,565,000 | 2,761,000 |
Unpaid principal balance | 3,004,000 | 3,731,000 |
Related allowance | 300,000 | 208,000 |
Average recorded investment | 2,663,000 | 2,888,000 |
Real Estate Mortgage Portfolio Segment [Member] | One to Four Family Residential [Member] | ||
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 1,115,000 | 906,000 |
Loans with no related allowance recorded, unpaid principal balance | 1,115,000 | 906,000 |
Loans with no related allowance recorded, average recorded investment | $ 1,011,000 | $ 661,000 |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | ||
Loans with an allowance recorded, unpaid principal balance | ||
Related allowance | ||
Loans with an allowance recorded, average recorded investment | $ 188,000 | |
Total: | ||
Recorded investment | $ 1,115,000 | 906,000 |
Unpaid principal balance | $ 1,115,000 | $ 906,000 |
Related allowance | ||
Average recorded investment | $ 1,011,000 | $ 849,000 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity First Lien [Member] | ||
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 13,000 | |
Loans with no related allowance recorded, unpaid principal balance | 13,000 | |
Loans with no related allowance recorded, average recorded investment | $ 7,000 | $ 37,000 |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | ||
Loans with an allowance recorded, unpaid principal balance | ||
Related allowance | ||
Loans with an allowance recorded, average recorded investment | ||
Total: | ||
Recorded investment | $ 13,000 | |
Unpaid principal balance | $ 13,000 | |
Related allowance | ||
Average recorded investment | $ 7,000 | $ 37,000 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity Junior Lien [Member] | ||
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 289,000 | 92,000 |
Loans with no related allowance recorded, unpaid principal balance | 289,000 | 92,000 |
Loans with no related allowance recorded, average recorded investment | $ 191,000 | $ 69,000 |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | ||
Loans with an allowance recorded, unpaid principal balance | ||
Related allowance | ||
Loans with an allowance recorded, average recorded investment | ||
Total: | ||
Recorded investment | $ 289,000 | $ 92,000 |
Unpaid principal balance | $ 289,000 | $ 92,000 |
Related allowance | ||
Average recorded investment | $ 191,000 | $ 69,000 |
Real Estate Mortgage Portfolio Segment [Member] | ||
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 3,301,000 | 3,032,000 |
Loans with no related allowance recorded, unpaid principal balance | 3,740,000 | 4,002,000 |
Loans with no related allowance recorded, average recorded investment | 3,168,000 | 2,567,000 |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | 872,000 | 1,018,000 |
Loans with an allowance recorded, unpaid principal balance | 872,000 | 1,018,000 |
Related allowance | 300,000 | 208,000 |
Loans with an allowance recorded, average recorded investment | 945,000 | 1,546,000 |
Total: | ||
Recorded investment | 4,173,000 | 4,050,000 |
Unpaid principal balance | 4,612,000 | 5,020,000 |
Related allowance | 300,000 | 208,000 |
Average recorded investment | 4,113,000 | $ 4,113,000 |
Consumer Portfolio Segment [Member] | ||
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 32,000 | |
Loans with no related allowance recorded, unpaid principal balance | 32,000 | |
Loans with no related allowance recorded, average recorded investment | 16,000 | $ 3,000 |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | 66,000 | 68,000 |
Loans with an allowance recorded, unpaid principal balance | 66,000 | 68,000 |
Related allowance | 66,000 | 68,000 |
Loans with an allowance recorded, average recorded investment | 67,000 | 72,000 |
Total: | ||
Recorded investment | 98,000 | 68,000 |
Unpaid principal balance | 98,000 | 68,000 |
Related allowance | 66,000 | 68,000 |
Average recorded investment | 83,000 | 75,000 |
Loans with no related allowance recorded, recorded investment | 6,877,000 | 6,151,000 |
Loans with no related allowance recorded, unpaid principal balance | 8,353,000 | 8,012,000 |
Loans with no related allowance recorded, average recorded investment | 6,516,000 | 4,005,000 |
Loans with an allowance recorded, recorded investment | 2,041,000 | 2,602,000 |
Loans with an allowance recorded, unpaid principal balance | 2,516,000 | 4,173,000 |
Related allowance | 748,000 | 544,000 |
Loans with an allowance recorded, average recorded investment | 2,322,000 | 6,598,000 |
Recorded investment | 8,918,000 | 8,753,000 |
Unpaid principal balance | 10,869,000 | 12,185,000 |
Related allowance | 748,000 | 544,000 |
Average recorded investment | $ 8,838,000 | $ 10,603,000 |
Note 3 - Loans - Non-accrual Lo
Note 3 - Loans - Non-accrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Commercial and Industrial Portfolio Segment [Member] | ||
Non-accrual loans | $ 3,673 | $ 3,643 |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | ||
Non-accrual loans | ||
Undevelopment Land Portfolio Segment [Member] | ||
Non-accrual loans | ||
Real Estate Mortgage Portfolio Segment [Member] | Commercial Investment [Member] | ||
Non-accrual loans | $ 204 | $ 278 |
Real Estate Mortgage Portfolio Segment [Member] | Owner Occupied Commercial [Member] | ||
Non-accrual loans | 2,565 | 2,761 |
Real Estate Mortgage Portfolio Segment [Member] | One to Four Family Residential [Member] | ||
Non-accrual loans | $ 1,115 | 906 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity First Lien [Member] | ||
Non-accrual loans | 13 | |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity Junior Lien [Member] | ||
Non-accrual loans | $ 289 | 92 |
Real Estate Mortgage Portfolio Segment [Member] | ||
Non-accrual loans | 4,173 | $ 4,050 |
Consumer Portfolio Segment [Member] | ||
Non-accrual loans | 32 | |
Non-accrual loans | $ 7,878 | $ 7,693 |
Note 3 - Loans - Aging of the R
Note 3 - Loans - Aging of the Recorded Investment in Loans (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Commercial and Industrial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | $ 654,000 | $ 238,000 |
Commercial and Industrial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 37,000 | 327,000 |
Commercial and Industrial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 3,673,000 | 3,643,000 |
Commercial and Industrial Portfolio Segment [Member] | ||
Past due | 4,364,000 | 4,208,000 |
Current | 672,418,000 | 640,190,000 |
Loans | $ 676,782,000 | $ 644,398,000 |
Recorded investment greater than 90 days and accruing | ||
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | ||
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | ||
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | ||
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | ||
Past due | ||
Current | $ 139,148,000 | $ 134,482,000 |
Loans | $ 139,148,000 | $ 134,482,000 |
Recorded investment greater than 90 days and accruing | ||
Undevelopment Land Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | $ 1,859,000 | |
Undevelopment Land Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | ||
Undevelopment Land Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | ||
Undevelopment Land Portfolio Segment [Member] | ||
Past due | $ 1,859,000 | |
Current | 19,660,000 | $ 21,185,000 |
Loans | $ 21,519,000 | $ 21,185,000 |
Recorded investment greater than 90 days and accruing | ||
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Investment [Member] | ||
Past due | $ 315,000 | $ 290,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Owner Occupied Commercial [Member] | ||
Past due | 1,495,000 | |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | One to Four Family Residential [Member] | ||
Past due | $ 626,000 | $ 1,147,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity First Lien [Member] | ||
Past due | 35,000 | |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Home Equity Junior Lien [Member] | ||
Past due | $ 129,000 | 285,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | 2,565,000 | 1,757,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Investment [Member] | ||
Past due | 278,000 | $ 140,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Owner Occupied Commercial [Member] | ||
Past due | 95,000 | |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | One to Four Family Residential [Member] | ||
Past due | $ 193,000 | $ 94,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity First Lien [Member] | ||
Past due | 51,000 | |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Home Equity Junior Lien [Member] | ||
Past due | $ 120,000 | 173,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 686,000 | 458,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Investment [Member] | ||
Past due | 204,000 | 278,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Owner Occupied Commercial [Member] | ||
Past due | 2,565,000 | 2,761,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | One to Four Family Residential [Member] | ||
Past due | $ 1,115,000 | 1,082,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity First Lien [Member] | ||
Past due | 13,000 | |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Home Equity Junior Lien [Member] | ||
Past due | $ 289,000 | 92,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 4,173,000 | 4,226,000 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Investment [Member] | ||
Past due | 797,000 | 708,000 |
Current | 495,850,000 | 481,931,000 |
Loans | $ 496,647,000 | $ 482,639,000 |
Recorded investment greater than 90 days and accruing | ||
Real Estate Mortgage Portfolio Segment [Member] | Owner Occupied Commercial [Member] | ||
Past due | $ 4,155,000 | $ 2,761,000 |
Current | 368,656,000 | 372,255,000 |
Loans | $ 372,811,000 | $ 375,016,000 |
Recorded investment greater than 90 days and accruing | ||
Real Estate Mortgage Portfolio Segment [Member] | One to Four Family Residential [Member] | ||
Past due | $ 1,934,000 | $ 2,323,000 |
Current | 232,265,000 | 224,252,000 |
Loans | $ 234,199,000 | 226,575,000 |
Recorded investment greater than 90 days and accruing | 176,000 | |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity First Lien [Member] | ||
Past due | 99,000 | |
Current | $ 52,042,000 | 50,016,000 |
Loans | $ 52,042,000 | $ 50,115,000 |
Recorded investment greater than 90 days and accruing | ||
Real Estate Mortgage Portfolio Segment [Member] | Home Equity Junior Lien [Member] | ||
Past due | $ 538,000 | $ 550,000 |
Current | 62,798,000 | 62,516,000 |
Loans | $ 63,336,000 | $ 63,066,000 |
Recorded investment greater than 90 days and accruing | ||
Real Estate Mortgage Portfolio Segment [Member] | ||
Past due | $ 7,424,000 | $ 6,441,000 |
Current | 1,211,611,000 | 1,190,970,000 |
Loans | $ 1,219,035,000 | 1,197,411,000 |
Recorded investment greater than 90 days and accruing | 176,000 | |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | $ 224,000 | 343,000 |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 5,000 | $ 8,000 |
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 32,000 | |
Consumer Portfolio Segment [Member] | ||
Past due | 261,000 | $ 351,000 |
Current | 37,743,000 | 35,180,000 |
Loans | $ 38,004,000 | $ 35,531,000 |
Recorded investment greater than 90 days and accruing | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | $ 5,302,000 | $ 2,338,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 728,000 | 793,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 7,878,000 | 7,869,000 |
Past due | 13,908,000 | 11,000,000 |
Current | 2,080,580,000 | 2,022,007,000 |
Loans | 2,094,488,000 | 2,033,007,000 |
Recorded investment greater than 90 days and accruing | $ 0 | $ 176,000 |
Note 3 - Loans - Internally Ass
Note 3 - Loans - Internally Assigned Risk Grades of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Commercial and Industrial Portfolio Segment [Member] | Pass [Member] | ||
Loans | $ 642,042 | $ 612,853 |
Commercial and Industrial Portfolio Segment [Member] | Special Mention [Member] | ||
Loans | 22,907 | 19,672 |
Commercial and Industrial Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | ||
Loans | 7,186 | 7,238 |
Commercial and Industrial Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | ||
Loans | $ 4,647 | $ 4,635 |
Commercial and Industrial Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | ||
Commercial and Industrial Portfolio Segment [Member] | ||
Loans | $ 676,782 | $ 644,398 |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Pass [Member] | ||
Loans | $ 137,924 | 133,342 |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Special Mention [Member] | ||
Loans | 773 | |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | ||
Loans | $ 1,224 | $ 367 |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | ||
Loans | ||
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | ||
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | ||
Loans | $ 139,148 | $ 134,482 |
Undevelopment Land Portfolio Segment [Member] | Pass [Member] | ||
Loans | $ 20,854 | 20,513 |
Undevelopment Land Portfolio Segment [Member] | Special Mention [Member] | ||
Loans | 517 | |
Undevelopment Land Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | ||
Loans | $ 665 | $ 155 |
Undevelopment Land Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | ||
Loans | ||
Undevelopment Land Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | ||
Undevelopment Land Portfolio Segment [Member] | ||
Loans | $ 21,519 | $ 21,185 |
Real Estate Mortgage Portfolio Segment [Member] | Pass [Member] | Commercial Investment [Member] | ||
Loans | 494,426 | 480,178 |
Real Estate Mortgage Portfolio Segment [Member] | Pass [Member] | Owner Occupied Commercial [Member] | ||
Loans | 354,090 | 351,707 |
Real Estate Mortgage Portfolio Segment [Member] | Pass [Member] | One to Four Family Residential [Member] | ||
Loans | 232,502 | 224,645 |
Real Estate Mortgage Portfolio Segment [Member] | Pass [Member] | Home Equity First Lien [Member] | ||
Loans | 52,042 | 50,102 |
Real Estate Mortgage Portfolio Segment [Member] | Pass [Member] | Home Equity Junior Lien [Member] | ||
Loans | 62,997 | 62,924 |
Real Estate Mortgage Portfolio Segment [Member] | Pass [Member] | ||
Loans | 1,196,057 | 1,169,556 |
Real Estate Mortgage Portfolio Segment [Member] | Special Mention [Member] | Commercial Investment [Member] | ||
Loans | 1,950 | 2,183 |
Real Estate Mortgage Portfolio Segment [Member] | Special Mention [Member] | Owner Occupied Commercial [Member] | ||
Loans | 12,591 | 17,135 |
Real Estate Mortgage Portfolio Segment [Member] | Special Mention [Member] | One to Four Family Residential [Member] | ||
Loans | $ 582 | $ 848 |
Real Estate Mortgage Portfolio Segment [Member] | Special Mention [Member] | Home Equity First Lien [Member] | ||
Loans | ||
Real Estate Mortgage Portfolio Segment [Member] | Special Mention [Member] | Home Equity Junior Lien [Member] | ||
Loans | $ 50 | $ 50 |
Real Estate Mortgage Portfolio Segment [Member] | Special Mention [Member] | ||
Loans | 15,173 | $ 20,216 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | Commercial Investment [Member] | ||
Loans | 67 | |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | Owner Occupied Commercial [Member] | ||
Loans | $ 3,565 | $ 3,413 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | One to Four Family Residential [Member] | ||
Loans | ||
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | Home Equity First Lien [Member] | ||
Loans | ||
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | Home Equity Junior Lien [Member] | ||
Loans | ||
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | ||
Loans | $ 3,632 | $ 3,413 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | Commercial Investment [Member] | ||
Loans | 204 | 278 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | Owner Occupied Commercial [Member] | ||
Loans | 2,565 | 2,761 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | One to Four Family Residential [Member] | ||
Loans | $ 1,115 | 1,082 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | Home Equity First Lien [Member] | ||
Loans | 13 | |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | Home Equity Junior Lien [Member] | ||
Loans | $ 289 | 92 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | ||
Loans | $ 4,173 | $ 4,226 |
Real Estate Mortgage Portfolio Segment [Member] | Doubtful [Member] | Commercial Investment [Member] | ||
Loans | ||
Real Estate Mortgage Portfolio Segment [Member] | Doubtful [Member] | Owner Occupied Commercial [Member] | ||
Loans | ||
Real Estate Mortgage Portfolio Segment [Member] | Doubtful [Member] | One to Four Family Residential [Member] | ||
Loans | ||
Real Estate Mortgage Portfolio Segment [Member] | Doubtful [Member] | Home Equity First Lien [Member] | ||
Loans | ||
Real Estate Mortgage Portfolio Segment [Member] | Doubtful [Member] | Home Equity Junior Lien [Member] | ||
Loans | ||
Real Estate Mortgage Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | ||
Real Estate Mortgage Portfolio Segment [Member] | Commercial Investment [Member] | ||
Loans | $ 496,647 | $ 482,639 |
Real Estate Mortgage Portfolio Segment [Member] | Owner Occupied Commercial [Member] | ||
Loans | 372,811 | 375,016 |
Real Estate Mortgage Portfolio Segment [Member] | One to Four Family Residential [Member] | ||
Loans | 234,199 | 226,575 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity First Lien [Member] | ||
Loans | 52,042 | 50,115 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity Junior Lien [Member] | ||
Loans | 63,336 | 63,066 |
Real Estate Mortgage Portfolio Segment [Member] | ||
Loans | 1,219,035 | 1,197,411 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Loans | $ 37,906 | $ 35,463 |
Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Loans | ||
Consumer Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | ||
Loans | ||
Consumer Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | ||
Loans | $ 98 | $ 68 |
Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | ||
Consumer Portfolio Segment [Member] | ||
Loans | $ 38,004 | $ 35,531 |
Pass [Member] | ||
Loans | 2,034,783 | 1,971,727 |
Special Mention [Member] | ||
Loans | 38,080 | 41,178 |
Substandard [Member] | Performing Financial Instruments [Member] | ||
Loans | 12,707 | 11,173 |
Substandard [Member] | Nonperforming Financial Instruments [Member] | ||
Loans | $ 8,918 | $ 8,929 |
Doubtful [Member] | ||
Loans | ||
Loans | $ 2,094,488 | $ 2,033,007 |
Note 4 - Securities Sold Unde55
Note 4 - Securities Sold Under Agreements to Repurchase (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Securities Sold under Agreements to Repurchase | $ 54,781 | $ 64,526 |
Note 5 - Federal Home Loan Ba56
Note 5 - Federal Home Loan Bank Advances (Details Textual) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Advances from Federal Home Loan Banks | $ 43,236 | $ 43,468 |
Federal Home Loan Bank, Number of Separate Advances | 12 | |
Federal Home Loan Bank, Number of Separate Advances Principal Due at Maturity | 2 | |
Advances From Federal Home Loan Banks, Principal Due at Maturity | $ 30,000 | |
Final Advances from Federal Home Loan Banks, Principal Paid Monthly | 13,200 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 557,100 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Amount of Available, Unused Funds | $ 355,600 |
Note 5 - Federal Home Loan Ba57
Note 5 - Federal Home Loan Bank Advances - Contractual Maturities and Average Effective Rates of Outstanding Advances (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
2,016 | $ 30,000 | $ 30,000 |
2,016 | 0.59% | 0.55% |
2,020 | $ 1,826 | $ 1,838 |
2,020 | 2.23% | 2.23% |
2,021 | $ 411 | $ 429 |
2,021 | 2.12% | 2.12% |
2,024 | $ 2,815 | $ 2,865 |
2,024 | 2.36% | 2.36% |
2,025 | $ 6,849 | $ 6,991 |
2,025 | 2.44% | 2.44% |
2,028 | $ 1,335 | $ 1,345 |
2,028 | 1.48% | 1.48% |
Total advances | $ 43,236 | $ 43,468 |
Rate | 1.11% | 1.09% |
Note 6 - Other Comprehensive 58
Note 6 - Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||
Accumulated other comprehensive income (loss) | $ 965 | $ 2,456 |
Other comprehensive income (loss) before reclassifications | 3,653 | 1,880 |
Other comprehensive income | 3,653 | 1,880 |
Accumulated other comprehensive income (loss) | 4,618 | 4,336 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Accumulated other comprehensive income (loss) | (60) | 16 |
Other comprehensive income (loss) before reclassifications | (339) | (19) |
Other comprehensive income | (339) | (19) |
Accumulated other comprehensive income (loss) | (399) | (3) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated other comprehensive income (loss) | $ (273) | $ (387) |
Other comprehensive income (loss) before reclassifications | ||
Other comprehensive income | ||
Accumulated other comprehensive income (loss) | $ (273) | $ (387) |
Accumulated other comprehensive income (loss) | 632 | 2,085 |
Other comprehensive income (loss) before reclassifications | 3,314 | 1,861 |
Other comprehensive income | 3,314 | 1,861 |
Accumulated other comprehensive income (loss) | $ 3,946 | $ 3,946 |
Note 7 - Derivative Financial59
Note 7 - Derivative Financial Instruments (Details Textual) - Cash Flow Hedging [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 |
Interest Rate Swap, Maturing December 6, 2016 [Member] | |||
Derivative, Notional Amount | $ 10,000 | $ 10,000 | |
Interest Rate Swap, Maturing December 6, 2020 [Member] | |||
Derivative, Notional Amount | $ 20,000 | $ 20,000 |
Note 7 - Derivative Financial60
Note 7 - Derivative Financial Instruments - Outstanding Undesignated Interest Rate Swap Contracts (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Receiving [Member] | ||
Notional amount | $ 20,560 | $ 10,788 |
Weighted average maturity (years) | 6 years 292 days | 6 years 328 days |
Fair value | $ (944) | $ (461) |
Paying [Member] | ||
Notional amount | $ 20,560 | $ 10,788 |
Weighted average maturity (years) | 6 years 292 days | 6 years 328 days |
Fair value | $ 944 | $ 461 |
Note 7 - Derivative Financial61
Note 7 - Derivative Financial Instruments - Derivative Position Designated As a Cash Flow Hedge (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Interest Rate Swap, Maturing December 6, 2016 [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Notional amount | $ 10,000 | $ 10,000 | |
Fair value | $ (1) | $ 8 | |
Interest Rate Swap, Receiving, Maturing December 6, 2016 [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Receivable (variable) index | US 3 Month LIBOR | ||
Interest Rate Swap, Paying, Maturing December 6, 2016 [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Pay fixed swap rate | 0.72% | ||
Interest Rate Swap, Maturing December 6, 2020 [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Notional amount | $ 20,000 | 20,000 | |
Fair value | $ (614) | (101) | |
Interest Rate Swap, Receiving, Maturing December 6, 2020 [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Receivable (variable) index | US 3 Month LIBOR | ||
Interest Rate Swap, Paying, Maturing December 6, 2020 [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |||
Pay fixed swap rate | 1.79% | ||
Interest Rate Swap [Member] | |||
Notional amount | $ 30,000 | ||
Fair value | $ (615) | $ (93) | |
Paying [Member] | |||
Pay fixed swap rate | 1.43% |
Note 8 - Goodwill and Intangi62
Note 8 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Indiana Bank [Member] | Commercial Banking [Member] | |||
Goodwill | $ 682 | ||
THE BANCorp [Member] | Core Deposits [Member] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2,500 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||
THE BANCorp [Member] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | ||
Core Deposits [Member] | |||
Finite-Lived Intangible Assets, Net | $ 1,500 | ||
Finite-lived Intangible Assets, Fair Value Disclosure | 2,700 | $ 3,100 | |
Loans Serviced for Others Outstanding Principal Balance | $ 402,300 | $ 410,800 |
Note 8 - Goodwill and Intangi63
Note 8 - Goodwill and Intangible Assets - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Balance at beginning of period | $ 1,018 | $ 1,131 |
Additions for mortgage loans sold | 29 | 116 |
Amortization | (58) | (180) |
Balance at March 31 | $ 989 | $ 1,067 |
Note 9 - Defined Benefit Reti64
Note 9 - Defined Benefit Retirement Plan (Details Textual) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Defined Benefit Plan, Number of Employees Covered | 3 | |
Defined Benefit Plan, Number of Present Employees Covered | 2 | |
Defined Benefit Plan, Number of Retired Employees Covered | 1 | |
Deferred Compensation Arrangement with Individual, Requisite Service Period | 25 years | |
Defined Benefit Plan, Number of Current Officers Fully Vested | 1 | |
Defined Benefit Plan, Number of Current Officers That Will Be Fully Vested in Year 2017 | 1 | |
Defined Benefit Plan, Net Periodic Benefit Cost | $ 33 | $ 36 |
Note 10 - Commitments and Con65
Note 10 - Commitments and Contingent Liabilities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Commitments to Extend Credit and Standby Letters of Credit [Member] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability | $ 613,800 | $ 636,900 |
Standby Letters of Credit [Member] | Minimum [Member] | ||
Guarantee Obligations, Agreement Term | 1 year | |
Standby Letters of Credit [Member] | Maximum [Member] | ||
Guarantee Obligations, Agreement Term | 2 years | |
Standby Letters of Credit [Member] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability | $ 13,400 | $ 12,800 |
Loss Contingency Accrual | $ 387 |
Note 11 - Preferred Stock (Deta
Note 11 - Preferred Stock (Details Textual) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Preferred Stock, Par or Stated Value Per Share | $ 0 | |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Note 12 - Stock-based Compens67
Note 12 - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||
Stock Appreciation Rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Restricted Stock [Member] | Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Restricted Stock [Member] | Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 5,432 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 33,630 | 35,265 | |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Sharebased Compensation Arrangement by Share-based Payment Award Post Vesting Holding Period | 1 year | ||
Share-based Compensation Arrangement by Share-based Payment Award Liquidity Discount | 4.50% | 4.80% | |
Restricted Stock Units (RSUs) [Member] | Director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Fair Value Granted | $ 200 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Plans | 1 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 226,608 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expected Additional Compensation Cost Remainder of Year | $ 1,700 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 5,400 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 5 years | ||
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | $ 495 | $ 167 |
Note 12 - Stock-based Compens68
Note 12 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stock-based compensation expense before income taxes | $ 513 | $ 501 |
Less: deferred tax benefit | (180) | (176) |
Reduction of net income | $ 333 | $ 325 |
Note 12 - Stock-based Compens69
Note 12 - Stock-based Compensation - Fair Value Assumptions (Details) - Stock Options and Stock Appreciation Rights SARs [Member] | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Dividend yield | 2.94% | 2.97% |
Expected volatility | 19.31% | 22.81% |
Risk free interest rate | 1.70% | 1.91% |
Expected life of SARs (years) | 7 years 109 days | 7 years 182 days |
Note 12 - Stock-based Compens70
Note 12 - Stock-based Compensation - Stock Option and SARs Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2016 | Mar. 31, 2016 |
Award Vested and Exercisable [Member] | Maximum [Member] | ||
Vested and exercisable (in dollars per share) | $ 34.43 | $ 29.16 |
Award Vested and Exercisable [Member] | ||
Vested and exercisable (in dollars per share) | $ 23.62 | |
Vested and exercisable | $ 6,191 | |
Vested and exercisable (in dollars per share) | $ 5.09 | |
Vested and exercisable | 4 years | 3 years 255 days |
Vested and exercisable (in dollars per share) | $ 23.81 | $ 23.81 |
Vested and exercisable | $ 6,952 | $ 6,952 |
Vested and exercisable (in dollars per share) | $ 4.99 | $ 4.99 |
Award Unvested [Member] | Maximum [Member] | ||
Vested and exercisable (in dollars per share) | $ 38.63 | 36.83 |
Award Unvested [Member] | ||
Unvested (in dollars per share) | $ 27.99 | |
Unvested | $ 1,733 | |
Unvested (in dollars per share) | $ 4.93 | |
Unvested | 8 years 182 days | 7 years 255 days |
Unvested (in dollars per share) | $ 32.21 | $ 32.21 |
Unvested | $ 1,105 | $ 1,105 |
Unvested (in dollars per share) | $ 5.15 | $ 5.15 |
Award Outstanding [Member] | Maximum [Member] | ||
Vested and exercisable (in dollars per share) | $ 38.63 | 36.83 |
Award Outstanding [Member] | ||
Total outstanding (in dollars per share) | $ 24.88 | |
Total outstanding | $ 7,924 | |
Total outstanding (in dollars per share) | $ 5.04 | |
Total outstanding | 5 years 73 days | 4 years 292 days |
Total outstanding (in dollars per share) | $ 26.07 | $ 26.07 |
Total outstanding | $ 8,057 | $ 8,057 |
Total outstanding (in dollars per share) | $ 5.03 | $ 5.03 |
Award Granted [Member] | ||
Vested and exercisable (in dollars per share) | 38.63 | |
Granted (in dollars per share) | $ 38.63 | |
Granted | ||
Granted (in dollars per share) | $ 5.33 | |
Award Exercised [Member] | Maximum [Member] | ||
Vested and exercisable (in dollars per share) | 26.83 | |
Award Exercised [Member] | ||
Exercised (in dollars per share) | $ 26.14 | |
Exercised | $ 293 | |
Exercised (in dollars per share) | $ 6.06 | |
Award Vested [Member] | Maximum [Member] | ||
Vested and exercisable (in dollars per share) | 34.43 | |
Award Vested [Member] | ||
Vested year-to-date (in dollars per share) | $ 26.14 | |
Vested year-to-date | $ 753 | |
Vested year-to-date (in dollars per share) | $ 4.70 |
Note 12 - Stock-based Compens71
Note 12 - Stock-based Compensation - Restricted Stock (Details) - Restricted Stock [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Number of shares, unvested (in shares) | 104,199 | 114,093 |
Unvested, grant date weighted average cost (in dollars per share) | $ 28.46 | $ 24.95 |
Number of shares, awarded (in shares) | 33,630 | 35,265 |
Shares awarded, grant date weighted average cost (in dollars per share) | $ 38.63 | $ 34.48 |
Number of shares, restrictions lapsed and shares released to employees (in shares) | (31,456) | (40,510) |
Restrictions lapsed and shares released to employees, grant date weighted average cost (in dollars per share) | $ 26.78 | $ 23.84 |
Number of shares, forfeited (in shares) | (4,040) | (4,649) |
Shares forfeited, grant date weighted average cost (in dollars per share) | $ 29.47 | $ 28.46 |
Number of shares, unvested (in shares) | 102,333 | 104,199 |
Unvested, grant date weighted average cost (in dollars per share) | $ 32.28 | $ 28.46 |
Note 12 - Stock-based Compens72
Note 12 - Stock-based Compensation - Performance-based Restricted Stock Units (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Performance Shares [Member] | Executive Officer [Member] | ||||
Vesting period | 3 years | 3 years | 3 years | |
Shares awarded, grant date weighted average cost (in dollars per share) | $ 33.92 | $ 30.03 | $ 26.42 | |
Expected shares to be awarded (in shares) | 18,442 | 21,258 | 33,349 | |
Performance Shares [Member] | ||||
Vesting period | 3 years | |||
Expected shares to be awarded (in shares) | 226,608 |
Note 13 - Net Income Per Shar73
Note 13 - Net Income Per Share - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Parent Company [Member] | ||
Net income | $ 9,835 | $ 9,255 |
Net income | $ 9,835 | $ 9,255 |
Basic (in shares) | 14,836 | 14,647 |
Dilutive securities (in shares) | 225 | 205 |
Average shares outstanding including dilutive securities including dilutive securities (in shares) | 15,061 | 14,852 |
Basic (in dollars per share) | $ 0.66 | $ 0.63 |
Diluted (in dollars per share) | $ 0.65 | $ 0.62 |
Note 14 - Segments - Financial
Note 14 - Segments - Financial Information by Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Commercial Banking [Member] | |||
Net interest income | $ 23,407 | $ 21,560 | |
Provision for loan losses | $ 500 | ||
Investment management and trust revenue | |||
All other non-interest income | $ 5,470 | $ 5,121 | |
Non-interest expense | 16,895 | 15,191 | |
Income before income taxes | 11,482 | 11,490 | |
Tax expense | 2,951 | 3,534 | |
Net income | 8,531 | 7,956 | |
Investment Management and Trust [Member] | |||
Net interest income | $ 62 | $ 54 | |
Provision for loan losses | |||
Investment management and trust revenue | $ 4,612 | $ 4,552 | |
All other non-interest income | |||
Non-interest expense | $ 2,645 | $ 2,588 | |
Income before income taxes | 2,029 | 2,018 | |
Tax expense | 725 | 719 | |
Net income | 1,304 | 1,299 | |
Net interest income | 23,469 | $ 21,614 | |
Provision for loan losses | 500 | $ 750 | |
Investment management and trust revenue | 4,612 | $ 4,552 | |
All other non-interest income | 5,470 | 5,121 | |
Non-interest expense | 19,540 | 17,779 | |
Income before income taxes | 13,511 | 13,508 | |
Tax expense | 3,676 | 4,253 | |
Net income | $ 9,835 | $ 9,255 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Unrecognized Tax Benefits | $ 45 | $ 42 |
Note 15 - Income Taxes - Compon
Note 15 - Income Taxes - Components of Income Tax Expense (Benefit) from Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Current tax expense | ||
Federal | $ 2,373 | $ 3,076 |
State | 124 | 87 |
Total current tax expense | 2,497 | 3,163 |
Deferred tax expense | ||
Federal | 1,101 | 984 |
State | 78 | 106 |
Total deferred tax expense | 1,179 | 1,090 |
Total income tax expense | $ 3,676 | $ 4,253 |
Note 15 - Income Taxes - Differ
Note 15 - Income Taxes - Difference Between Statutory and Effective Tax Rates (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
U.S. federal statutory tax rate | 35.00% | 35.00% |
Tax credits | (9.70%) | (2.40%) |
Tax exempt interest income | (1.30%) | (1.40%) |
Cash surrender value of life insurance | (0.80%) | (1.00%) |
State income taxes | 1.00% | 0.90% |
Other, net | 3.00% | 0.40% |
Effective tax rate | 27.20% | 31.50% |
Note 16 - Assets and Liabilit78
Note 16 - Assets and Liabilities Measured and Reported at Fair Value (Details Textual) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Appraisal Discount Method [Member] | ||
Assets, Fair Value Disclosure | $ 1,294,000 | |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure | 0 | $ 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Mortgage Servicing Rights [Member] | ||
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Loans [Member] | Appraisal Discount Method [Member] | ||
Assets, Fair Value Disclosure | 1,300,000 | 2,100,000 |
Impaired Financing Receivable, Related Allowance | 748,000 | 544,000 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,041,000 | 2,602,000 |
Other Real Estate, Foreclosed Assets, and Repossessed Assets | $ 5,000,000 | $ 4,500,000 |
Note 16 - Assets and Liabilit79
Note 16 - Assets and Liabilities Measured and Reported at Fair Value - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | ||
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 336,916,000 | $ 251,893,000 |
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | ||
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 336,916,000 | $ 251,893,000 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 336,916,000 | 251,893,000 |
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 80,000,000 | |
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | ||
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | ||
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 80,000,000 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 169,111,000 | $ 169,628,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 169,111,000 | $ 169,628,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 169,111,000 | $ 169,628,000 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | ||
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 62,336,000 | $ 63,702,000 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | ||
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 62,336,000 | $ 63,702,000 |
US States and Political Subdivisions Debt Securities [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | 62,336,000 | 63,702,000 |
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 649,000 | $ 653,000 |
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | ||
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | ||
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 649,000 | $ 653,000 |
Common Stock [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | 649,000 | 653,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 649,000 | $ 80,653,000 |
Interest rate swaps | ||
Total assets | $ 649,000 | $ 80,653,000 |
Interest rate swaps | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 568,363,000 | $ 485,223,000 |
Interest rate swaps | 944,000 | 461,000 |
Total assets | 569,307,000 | 485,684,000 |
Interest rate swaps | $ 1,559,000 | $ 554,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | ||
Interest rate swaps | ||
Total assets | ||
Interest rate swaps | ||
Fair Value, Measurements, Recurring [Member] | ||
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 569,012,000 | $ 565,876,000 |
Interest rate swaps | 944,000 | 461,000 |
Total assets | 569,956,000 | 566,337,000 |
Interest rate swaps | 1,559,000 | 554,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Total assets | 0 | 0 |
Securities available-for-sale (amortized cost of $561,906 in 2016 and $564,391 in 2015) | $ 569,012,000 | $ 565,876,000 |
Note 16 - Assets and Liabilit80
Note 16 - Assets and Liabilities Measured and Reported at Fair Value - Assets Measured at Fair Value on a Non-recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Impaired loans | ||
Other real estate owned | ||
Total | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans | ||
Other real estate owned | ||
Total | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans | $ 1,294 | $ 2,058 |
Other real estate owned | 4,291 | 3,782 |
Total | 5,585 | 5,840 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Impaired loans | 1,294 | 2,058 |
Impaired loans | (406) | (206) |
Other real estate owned | $ 4,291 | $ 3,782 |
Other real estate owned | ||
Total | $ 5,585 | $ 5,840 |
Total | (406) | (206) |
Other real estate owned | $ 333 | $ (20) |
Note 16 - Assets and Liabilit81
Note 16 - Assets and Liabilities Measured and Reported at Fair Value - Significant Unobservable Inputs (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Appraisal Discount Method [Member] | Weighted Average [Member] | ||
Weighted average of input | 6.00% | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Appraisal Discount Method [Member] | ||
Carrying amount | $ 1,294,000 | |
Impaired Loans [Member] | Appraisal Discount Method [Member] | ||
Carrying amount | $ 1,300,000 | $ 2,100,000 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Appraisal Discount Method [Member] | Weighted Average [Member] | ||
Weighted average of input | 17.60% | |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Appraisal Discount Method [Member] | ||
Carrying amount | $ 4,291,000 | |
Fair Value, Inputs, Level 3 [Member] | ||
Carrying amount | $ 0 | $ 0 |
Note 17 - Disclosure of Finan82
Note 17 - Disclosure of Financial Instruments Not Reported at Fair Value - Financial Assets and Financial Liabilities That Are Not Measured and Reported at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Reported Value Measurement [Member] | ||
Financial assets | ||
Cash and short-term investments | $ 48,038 | $ 103,833 |
Mortgage loans held for sale | 3,984 | 6,800 |
Federal Home Loan Bank stock and other securities | 6,347 | 6,347 |
Loans, net | 2,072,037 | 2,010,566 |
Accrued interest receivable | 7,146 | 6,610 |
Financial liabilities | ||
Deposits | 2,366,100 | 2,371,702 |
Short-term borrowings | 84,864 | 87,003 |
FHLB advances | 43,236 | 43,468 |
Accrued interest payable | 119 | 127 |
Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Cash and short-term investments | 48,038 | 103,833 |
Mortgage loans held for sale | 4,119 | 7,112 |
Federal Home Loan Bank stock and other securities | 6,347 | 6,347 |
Loans, net | 2,095,613 | 2,021,776 |
Accrued interest receivable | 7,146 | 6,610 |
Financial liabilities | ||
Deposits | 2,366,239 | 2,371,300 |
Short-term borrowings | 84,864 | 87,003 |
FHLB advances | 44,385 | 43,647 |
Accrued interest payable | 119 | 127 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets | ||
Cash and short-term investments | $ 48,038 | $ 103,833 |
Mortgage loans held for sale | ||
Federal Home Loan Bank stock and other securities | ||
Loans, net | ||
Accrued interest receivable | $ 7,146 | $ 6,610 |
Financial liabilities | ||
Deposits | ||
Short-term borrowings | ||
FHLB advances | ||
Accrued interest payable | $ 119 | $ 127 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets | ||
Cash and short-term investments | ||
Mortgage loans held for sale | $ 4,119 | $ 7,112 |
Federal Home Loan Bank stock and other securities | $ 6,347 | $ 6,347 |
Loans, net | ||
Accrued interest receivable | ||
Financial liabilities | ||
Deposits | ||
Short-term borrowings | $ 84,864 | $ 87,003 |
FHLB advances | $ 44,385 | $ 43,647 |
Accrued interest payable | ||
Fair Value, Inputs, Level 3 [Member] | ||
Financial assets | ||
Cash and short-term investments | ||
Mortgage loans held for sale | ||
Federal Home Loan Bank stock and other securities | ||
Loans, net | $ 2,095,613 | $ 2,021,776 |
Accrued interest receivable | ||
Financial liabilities | ||
Deposits | $ 2,366,239 | $ 2,371,300 |
Short-term borrowings | ||
FHLB advances | ||
Accrued interest payable | ||
Cash and short-term investments | $ 48,038 | $ 103,833 |
Accrued interest receivable | 7,146 | 6,610 |
Accrued interest payable | $ 119 | $ 127 |
Note 18 - Regulatory Matters -
Note 18 - Regulatory Matters - Risk Based Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Subsidiaries [Member] | |||
Total risk-based capital (1) | |||
Total risk-based capital, actual amount | [1] | $ 304,384 | $ 298,129 |
Total risk-based capital, actual ratio | [1] | 12.81% | 12.91% |
Total risk-based capital, minimum for adequately capitalized amount | [1] | $ 190,091 | $ 184,743 |
Total risk-based capital, minimum for adequately capitalized ratio | [1] | 8.00% | 8.00% |
Total risk-based capital, minimum for well capitalized amount | [1] | $ 237,614 | $ 230,929 |
Total risk-based capital, minimum for well capitalized ratio | 10.00% | 10.00% | |
Common Equity Tier 1 risk-based capital | |||
Common Equity Tier 1 risk-based capital, actual amount | $ 281,546 | $ 275,256 | |
Common Equity Tier 1 risk-based capital, actual ratio | 11.85% | 11.92% | |
Common Equity Tier 1 risk-based capital, minimum for adequately capitalized amount | $ 106,916 | $ 103,914 | |
Common Equity Tier 1 risk-based capital, minimum for adequately capitalized ratio | 4.50% | 4.50% | |
Common Equity Tier 1 risk-based capital, minimum for well capitalized amount | $ 142,555 | $ 138,552 | |
Common Equity Tier 1 risk-based capital, minimum for well capitalized ratio | 6.00% | 6.00% | |
Tier 1 risk-based capital (1) | |||
Tier 1 risk-based capital, actual amount | [1] | $ 281,546 | $ 275,256 |
Tier 1 risk-based capital, actual ratio | [1] | 11.85% | 11.92% |
Tier 1 risk-based capital, minimum for adequately capitalized amount | [1] | $ 142,555 | $ 138,552 |
Tier 1 risk-based capital, minimum for adequately capitalized ratio | [1] | 6.00% | 6.00% |
Tier 1 risk-based capital, minimum for well capitalized amount | [1] | $ 142,555 | $ 138,552 |
Tier 1 risk-based capital, minimum for well capitalized ratio | 6.00% | 6.00% | |
Leverage (2) | |||
Leverage, actual amount | [2] | $ 281,546 | $ 275,256 |
Leverage, actual ratio | [2] | 10.02% | 10.19% |
Leverage, minimum for adequately capitalized amount | [2] | $ 112,394 | $ 108,049 |
Leverage, minimum for adequately capitalized ratio | [2] | 4.00% | 4.00% |
Leverage, minimum for well capitalized amount | [2] | $ 140,492 | $ 135,062 |
Leverage, minimum for well capitalized ratio | 5.00% | 5.00% | |
Total risk-based capital, actual amount | [1] | $ 313,931 | $ 307,666 |
Total risk-based capital, actual ratio | [1] | 13.19% | 13.31% |
Total risk-based capital, minimum for adequately capitalized amount | [1] | $ 190,405 | $ 184,923 |
Total risk-based capital, minimum for adequately capitalized ratio | [1] | 8.00% | 8.00% |
Common Equity Tier 1 risk-based capital, actual amount | $ 291,093 | $ 284,793 | |
Common Equity Tier 1 risk-based capital, actual ratio | 12.23% | 12.32% | |
Common Equity Tier 1 risk-based capital, minimum for adequately capitalized amount | $ 107,107 | $ 104,023 | |
Common Equity Tier 1 risk-based capital, minimum for adequately capitalized ratio | 4.50% | 4.50% | |
Tier 1 risk-based capital, actual amount | [1] | $ 291,093 | $ 284,793 |
Tier 1 risk-based capital, actual ratio | [1] | 12.23% | 12.32% |
Tier 1 risk-based capital, minimum for adequately capitalized amount | [1] | $ 142,809 | $ 138,698 |
Tier 1 risk-based capital, minimum for adequately capitalized ratio | [1] | 6.00% | 6.00% |
Leverage, actual amount | [2] | $ 291,093 | $ 284,793 |
Leverage, actual ratio | [2] | 10.35% | 10.53% |
Leverage, minimum for adequately capitalized amount | [2] | $ 112,500 | $ 108,183 |
Leverage, minimum for adequately capitalized ratio | [2] | 4.00% | 4.00% |
[1] | Ratio is computed in relation to risk-weighted assets. | ||
[2] | Ratio is computed in relation to average assets. |
Note 19 - Subsequent Event (Det
Note 19 - Subsequent Event (Details Textual) | May. 27, 2016shares | Apr. 29, 2016 | Apr. 25, 2016shares | Mar. 31, 2016shares | Dec. 31, 2015shares |
Stock Split To [Member] | Subsequent Event [Member] | |||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 3 | ||||
Stock Split From [Member] | Subsequent Event [Member] | |||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 | ||||
Subsequent Event [Member] | |||||
Stock Dividend, Percentage | 50.00% | ||||
Dividends Payable, Date to be Paid | May 27, 2016 | ||||
Dividends Payable, Date of Record | May 13, 2016 | ||||
Common Stock, Shares, Outstanding | 14,985,768 | ||||
Scenario, Forecast [Member] | |||||
Stock Issued During Period, Shares, Stock Splits | 7,490,000 | ||||
Common Stock, Shares, Outstanding | 14,985,129 | 14,919,351 |