Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 27, 2016 | |
Document Information [Line Items] | ||
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) | 22,575,981 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 41,533,000 | $ 35,895,000 |
Federal funds sold and interest bearing deposits | 16,360,000 | 67,938,000 |
Cash and cash equivalents | 57,893,000 | 103,833,000 |
Mortgage loans held for sale | 5,959,000 | 6,800,000 |
Securities available-for-sale (amortized cost of $533,873 in 2016 and $564,391 in 2015) | 541,681,000 | 565,876,000 |
Federal Home Loan Bank stock and other securities | 6,347,000 | 6,347,000 |
Loans | 2,222,706,000 | 2,033,007,000 |
Less allowance for loan losses | 24,369,000 | 22,441,000 |
Net loans | 2,198,337,000 | 2,010,566,000 |
Premises and equipment, net | 42,903,000 | 39,557,000 |
Bank owned life insurance | 31,653,000 | 30,996,000 |
Accrued interest receivable | 6,952,000 | 6,610,000 |
Other assets | 46,940,000 | 46,216,000 |
Total assets | 2,938,665,000 | 2,816,801,000 |
Liabilities and Stockholders’ Equity | ||
Non-interest bearing | 680,078,000 | 583,768,000 |
Interest bearing | 1,710,519,000 | 1,787,934,000 |
Total deposits | 2,390,597,000 | 2,371,702,000 |
Securities sold under agreements to repurchase | 67,315,000 | 64,526,000 |
Federal funds purchased and other short-term borrowing | 76,387,000 | 22,477,000 |
Federal Home Loan Bank advances | 51,366,000 | 43,468,000 |
Accrued interest payable | 116,000 | 127,000 |
Other liabilities | 41,314,000 | 27,982,000 |
Total liabilities | 2,627,095,000 | 2,530,282,000 |
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 22,562,572 and 14,919,351 shares in 2016 and 2015, respectively | 36,068,000 | 10,616,000 |
Additional paid-in capital | 24,050,000 | 44,180,000 |
Retained earnings | 247,011,000 | 231,091,000 |
Accumulated other comprehensive income | 4,441,000 | 632,000 |
Total stockholders’ equity | 311,570,000 | 286,519,000 |
Total liabilities and stockholders’ equity | $ 2,938,665,000 | $ 2,816,801,000 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Securities available for sale, amortized cost | $ 533,872 | $ 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) | 22,562,572 | 14,919,351 |
Common stock, shares outstanding (in shares) | 22,562,572 | 14,919,351 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income: | ||||
Loans | $ 23,436 | $ 20,924 | $ 67,992 | $ 61,951 |
Federal funds sold and interest bearing deposits | 95 | 65 | 395 | 184 |
Mortgage loans held for sale | 66 | 67 | 185 | 180 |
Securities – taxable | 2,047 | 1,936 | 6,325 | 5,939 |
Securities – tax-exempt | 298 | 292 | 907 | 877 |
Total interest income | 25,942 | 23,284 | 75,804 | 69,131 |
Interest expense: | ||||
Deposits | 941 | 900 | 2,916 | 2,811 |
Federal funds purchased and other short-term borrowing | 19 | 7 | 57 | 19 |
Securities sold under agreements to repurchase | 38 | 42 | 100 | 111 |
Federal Home Loan Bank advances | 184 | 254 | 552 | 694 |
Total interest expense | 1,182 | 1,203 | 3,625 | 3,635 |
Net interest income | 24,760 | 22,081 | 72,179 | 65,496 |
Provision for loan losses | 1,250 | 2,500 | ||
Net interest income after provision for loan losses | 23,510 | 22,081 | 69,679 | 65,496 |
Non-interest income: | ||||
Wealth management and trust services | 4,800 | 4,373 | 14,219 | 13,576 |
Service charges on deposit accounts | 2,544 | 2,342 | 6,952 | 6,621 |
Bankcard transaction | 1,455 | 1,223 | 4,198 | 3,591 |
Mortgage banking | 1,072 | 772 | 2,896 | 2,513 |
Securities brokerage | 558 | 585 | 1,539 | 1,545 |
Bank owned life insurance | 216 | 222 | 657 | 670 |
Other | 713 | 468 | 1,757 | 1,361 |
Total non-interest income | 11,358 | 9,985 | 32,218 | 29,877 |
Non-interest expenses: | ||||
Salaries and employee benefits | 12,048 | 11,333 | 36,214 | 33,816 |
Net occupancy | 1,646 | 1,518 | 4,716 | 4,437 |
Data processing | 1,747 | 1,572 | 5,172 | 4,782 |
Furniture and equipment | 277 | 282 | 853 | 789 |
FDIC insurance | 356 | 318 | 1,035 | 932 |
Amortization of investments in tax credit partnerships | 1,015 | 158 | 3,046 | 475 |
Other | 3,429 | 3,249 | 9,215 | 9,845 |
Total non-interest expenses | 20,518 | 18,430 | 60,251 | 55,076 |
Income before income taxes | 14,350 | 13,636 | 41,646 | 40,297 |
Income tax expense | 3,883 | 4,352 | 11,235 | 12,756 |
Net income | $ 10,467 | $ 9,284 | $ 30,411 | $ 27,541 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.47 | $ 0.42 | $ 1.36 | $ 1.25 |
Diluted (in dollars per share) | $ 0.46 | $ 0.41 | $ 1.34 | $ 1.23 |
Average common shares: | ||||
Basic (in shares) | 22,385 | 22,131 | 22,325 | 22,056 |
Diluted (in shares) | 22,803 | 22,479 | 22,711 | 22,410 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income | $ 10,467 | $ 9,284 | $ 30,411 | $ 27,541 |
Other comprehensive income, net of tax: | ||||
Unrealized gains (losses) arising during the period (net of tax of ($616), $1,089, $2,213 and $683, respectively) | (1,147) | 2,023 | 4,110 | 1,270 |
Unrealized gains (losses) on hedging instruments: | ||||
Unrealized gains (losses) arising during the period (net of tax of $74, ($124), ($162) and ($135), respectively) | 137 | (231) | (301) | (250) |
Other comprehensive income (loss), net of tax | (1,010) | 1,792 | 3,809 | 1,020 |
Comprehensive income | $ 9,457 | $ 11,076 | $ 34,220 | $ 28,561 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Unrealized (losses) gains arising during the period, tax | $ (616) | $ 1,089 | $ 2,213 | $ 683 |
Unrealized gains (losses) arising during the period, tax | $ 74 | $ (124) | $ (162) | $ (135) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2014 | 14,745,000 | ||||
Balance at Dec. 31, 2014 | $ 10,035,000 | $ 38,191,000 | $ 209,584,000 | $ 2,085,000 | $ 259,895,000 |
Net income | 27,541,000 | 27,541,000 | |||
Other comprehensive income, net of tax | 1,020,000 | 1,020,000 | |||
Stock compensation expense | 1,561,000 | 1,561,000 | |||
Stock issued for share-based awards, net of withholdings to satisfy employee tax obligations upon award (in shares) | 145,000 | ||||
Stock issued for share-based awards, net of withholdings to satisfy employee tax obligations upon award | $ 483,000 | 3,074,000 | (1,533,000) | 2,024,000 | |
Cash dividends | (10,519,000) | (10,519,000) | |||
Shares cancelled (in shares) | (21) | ||||
Shares cancelled | $ (70) | (609) | 105 | (574) | |
Balance (in shares) at Sep. 30, 2015 | 14,869,000 | ||||
Balance at Sep. 30, 2015 | $ 10,448,000 | 42,217,000 | 225,178,000 | 3,105,000 | 280,948,000 |
Balance (in shares) at Dec. 31, 2015 | 14,919,000 | ||||
Balance at Dec. 31, 2015 | $ 10,616,000 | 44,180,000 | 231,091,000 | 632,000 | 286,519,000 |
Net income | 30,411,000 | 30,411,000 | |||
Other comprehensive income, net of tax | 3,809,000 | 3,809,000 | |||
Stock compensation expense | 1,646,000 | 1,646,000 | |||
Stock issued for share-based awards, net of withholdings to satisfy employee tax obligations upon award (in shares) | 159,000 | ||||
Stock issued for share-based awards, net of withholdings to satisfy employee tax obligations upon award | $ 527,000 | 3,404,000 | (2,903,000) | 1,028,000 | |
Cash dividends | (11,843,000) | (11,843,000) | |||
Shares cancelled (in shares) | (9) | ||||
Shares cancelled | $ (31) | (224) | 255 | ||
Balance (in shares) at Sep. 30, 2016 | 22,563,000 | ||||
Balance at Sep. 30, 2016 | $ 36,068,000 | 24,050,000 | 247,011,000 | 4,441,000 | 311,570,000 |
3 for 2 stock split (in shares) | 7,494,000 | ||||
3 for 2 stock split | $ 24,956,000 | $ (24,956,000) |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) | 9 Months Ended | |
Sep. 30, 2016$ / shares | Sep. 30, 2015$ / shares | |
Additional Paid-in Capital [Member] | Stock Split From [Member] | ||
Stock split from | 2 | |
Additional Paid-in Capital [Member] | Stock Split To [Member] | ||
Stock split from | 3 | |
Retained Earnings [Member] | ||
Cash dividends (in dollars per share) | $ 0.53 | $ 0.71 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Operating activities: | |||||
Net income | $ 10,467,000 | $ 9,284,000 | $ 30,411,000 | $ 27,541,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for loan losses | 1,250,000 | 2,500,000 | $ 750,000 | ||
Depreciation, amortization and accretion, net | 8,016,000 | 5,088,000 | |||
Deferred income tax expense (benefit) | (767,000) | 155,000 | (320,000) | 1,326,000 | |
Gain on sales of mortgage loans held for sale | (1,825,000) | (1,611,000) | |||
Origination of mortgage loans held for sale | (91,195,000) | (90,997,000) | |||
Proceeds from sale of mortgage loans held for sale | 93,861,000 | 90,816,000 | |||
Bank owned life insurance income | (216,000) | (222,000) | (657,000) | (670,000) | |
Loss on the disposal of premises and equipment | 163,000 | 3,000 | |||
Loss (gain) on the sale of other real estate | (382,000) | 153,000 | |||
Stock compensation expense | 1,646,000 | 1,561,000 | |||
Excess tax benefits from share-based compensation arrangements | (963,000) | (366,000) | |||
Increase in accrued interest receivable and other assets | (6,145,000) | (1,049,000) | |||
Increase in accrued interest payable and other liabilities | 14,253,000 | 2,509,000 | |||
Net cash provided by operating activities | 49,363,000 | 34,304,000 | |||
Investing activities: | |||||
Purchases of securities available for sale | (327,711,000) | (203,465,000) | |||
Proceeds from sale of securities available for sale | 5,934,000 | 5,900,000 | |||
Proceeds from maturities of securities available for sale | 355,943,000 | 206,734,000 | |||
Net increase in loans | (191,793,000) | (90,224,000) | |||
Purchases of premises and equipment | (5,906,000) | (3,136,000) | |||
Proceeds from disposal of premises and equipment | 53,000 | ||||
Proceeds from sale of foreclosed assets | 1,403,000 | 2,332,000 | |||
Net cash used in investing activities | (168,011,000) | (81,825,000) | |||
Financing activities: | |||||
Net increase in deposits | 18,895,000 | 17,951,000 | |||
Net increase in securities sold under agreements to repurchase and federal funds purchased | 56,699,000 | 12,709,000 | |||
Proceeds from Federal Home Loan Bank advances | 199,000,000 | 78,200,000 | |||
Repayments of Federal Home Loan Bank advances | (191,102,000) | (71,333,000) | |||
Issuance of common stock for options and performance stock units | 1,599,000 | 1,994,000 | |||
Excess tax benefits from share-based compensation arrangements | 963,000 | 366,000 | |||
Common stock repurchases | (1,534,000) | (910,000) | |||
Cash dividends paid | (11,812,000) | (10,503,000) | |||
Net cash provided by financing activities | 72,708,000 | 28,474,000 | |||
Net decrease in cash and cash equivalents | (45,940,000) | (19,047,000) | |||
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 | $ 57,893,000 | $ 55,194,000 | 57,893,000 | 55,194,000 | $ 103,833,000 |
Supplemental cash flow information: | |||||
Income tax payments | 9,190,000 | 10,177,000 | |||
Cash paid for interest | 3,636,000 | 3,640,000 | |||
Supplemental non-cash activity: | |||||
Transfers from loans to other real estate owned | $ 1,522,000 | $ 1,043,000 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 and nine month periods ended September 30, 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 occur 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 September 30, 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, quality and depth of the loan review function and management’s judgement of current trends and potential risks. Bancorp uses 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 | 9 Months Ended |
Sep. 30, 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 follows: (in thousands) Amortized Unrealized September 30, 2016 cost Gains Losses Fair value Government sponsored enterprise obligations $ 316,763 $ 4,080 $ 114 $ 320,729 Mortgage-backed securities - government agencies 158,478 2,767 168 161,077 Obligations of states and political subdivisions 57,979 1,229 41 59,167 Corporate equity securities 653 55 - 708 Total securities available for sale $ 533,873 $ 8,131 $ 323 $ 541,681 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 consist of common stock in a publicly-traded business development company. There were no securities classified as held to maturity as of September 30, 2016 or December 31, 2015. No securities were sold in 2016. In 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 contractual maturity groupings as of September 30, 2016 is shown below. (in thousands) Securities available-for-sale Amortized cost Fair value Due within 1 year $ 135,930 $ 136,043 Due after 1 but within 5 years 108,969 110,468 Due after 5 but within 10 years 19,293 19,633 Due after 10 years 110,550 113,752 Mortgage-backed securities – government agencies 158,478 161,077 Corporate equity securities 653 708 Total securities available-for-sale $ 533,873 $ 541,681 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 $323.3 million at September 30, 2016 and $380.7 million at December 31, 2015 were pledged to secure accounts of commercial depositors in cash management accounts, public deposits, and deposits for certain wealth management and trust accounts. Securities with unrealized losses at September 30, 2016 and December 31, 2015, not recognized in the statements of income are as follows: (in thousands) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2016 value losses value losses value losses Government sponsored enterprise obligations $ 135,908 $ 78 $ 3,834 $ 36 $ 139,742 $ 114 Mortgage-backed securities - government agencies 14,945 36 10,729 132 25,674 168 Obligations of states and political subdivisions 8,717 30 1,489 11 10,206 41 Total temporarily impaired securities $ 159,570 $ 144 $ 16,052 $ 179 $ 175,622 $ 323 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 September 30, 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 42 and 70 separate investment positions as of September 30, 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 September 30, 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 | 9 Months Ended |
Sep. 30, 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) September 30, 2016 December 31, 2015 Commercial and industrial $ 708,508 $ 644,398 Construction and development, excluding undeveloped land 171,994 134,482 Undeveloped land 19,993 21,185 Real estate mortgage: Commercial investment 510,128 436,989 Owner occupied commercial 412,733 420,666 1-4 family residential 245,229 226,575 Home equity - first lien 54,837 50,115 Home equity - junior lien 65,605 63,066 Subtotal: Real estate mortgage 1,288,532 1,197,411 Consumer 33,679 35,531 Total loans $ 2,222,706 $ 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 September 30, 2016 and December 31, 2015. (in thousands) Type of loan September 30, 2016 Commercial and industrial Construction and development excluding undeveloped land Undeveloped land Real estate mortgage Consumer Total Loans $ 708,508 $ 171,994 $ 19,993 $ 1,288,532 $ 33,679 $ 2,222,706 Loans collectively evaluated for impairment $ 705,335 $ 171,084 $ 19,338 $ 1,284,798 $ 33,592 $ 2,214,147 Loans individually evaluated for impairment $ 3,115 $ 910 $ 655 $ 3,121 $ 87 $ 7,888 Loans acquired with deteriorated credit quality $ 58 $ - $ - $ 613 $ - $ 671 Commercial and 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) 2,415 229 (128 ) (131 ) 115 2,500 Charge-offs (627 ) - - (426 ) (419 ) (1,472 ) Recoveries 252 21 - 318 309 900 At September 30, 2016 $ 10,685 $ 2,010 $ 686 $ 10,636 $ 352 $ 24,369 Allowance for loans collectively evaluated for impairment $ 9,296 $ 1,865 $ 652 $ 10,483 $ 291 $ 22,587 Allowance for loans individually evaluated for impairment $ 1,389 $ 145 $ 34 $ 153 $ 61 $ 1,782 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 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 acquired for development by the borrower, but for which no development has yet taken place. Credit risk is primarily dependent upon the financial strength of the borrower, and can be 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 may be adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, could 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 for which there was, at acquisition, evidence of deterioration of credit quality since origination and for which it was probable 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 September 30, 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 ) (41 ) Reclassifications from (to) non-accretable discount - - Disposals - - Balance at September 30, 2016 $ - $ 148 The following tables present loans individually evaluated for impairment as of September 30, 2016 and December 31, 2015. (in thousands) Unpaid Average September 30, 2016 Recorded investment principal balance Related allowance recorded investment Loans with no related allowance recorded: Commercial and industrial $ 999 $ 1,440 $ - $ 2,354 Construction and development, excluding undeveloped land - - - - Undeveloped land 149 149 - 37 Real estate mortgage Commercial investment 94 94 - 214 Owner occupied commercial 1,060 1,497 - 1,434 1-4 family residential 920 920 - 980 Home equity - first lien - - - 3 Home equity - junior lien 559 559 - 299 Subtotal: Real estate mortgage 2,633 3,070 - 2,930 Consumer 26 26 - 22 Subtotal $ 3,807 $ 4,685 $ - $ 5,343 Loans with an allowance recorded: Commercial and industrial $ 2,116 $ 2,590 $ 1,389 $ 1,433 Construction and development, excluding undeveloped land 910 910 145 228 Undeveloped land 506 506 34 127 Real estate mortgage Commercial investment - - - - Owner occupied commercial 488 488 153 693 1-4 family residential - - - - Home equity - first lien - - - - Home equity - junior lien - - - - Subtotal: Real estate mortgage 488 488 153 693 Consumer 61 61 61 65 Subtotal $ 4,081 $ 4,555 $ 1,782 $ 2,546 Total: Commercial and industrial $ 3,115 $ 4,030 $ 1,389 $ 3,787 Construction and development, excluding undeveloped land 910 910 145 228 Undeveloped land 655 655 34 164 Real estate mortgage - - - - Commercial investment 94 94 - 214 Owner occupied commercial 1,548 1,985 153 2,127 1-4 family residential 920 920 - 980 Home equity - first lien - - - 3 Home equity - junior lien 559 559 - 299 Subtotal: Real estate mortgage 3,121 3,558 153 3,623 Consumer 87 87 61 87 Total $ 7,888 $ 9,240 $ 1,782 $ 7,889 (in thousands) Unpaid Average December 31, 2015 Recorded investment principal balance Related allowance recorded 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. 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 had loans past due more than 90 days and still accruing interest totaling $80 thousand at September 30, 2016, compared with $176 thousand at December 31, 2015. The following table presents the recorded investment in non-accrual loans as of September 30, 2016 and December 31, 2015. (in thousands) September 30, 2016 December 31, 2015 Commercial and industrial $ 2,177 $ 3,643 Construction and development, excluding undeveloped land 910 - Undeveloped land 655 - Real estate mortgage Commercial investment 94 278 Owner occupied commercial 1,548 2,761 1-4 family residential 920 906 Home equity - first lien - 13 Home equity - junior lien 559 92 Subtotal: Real estate mortgage 3,121 4,050 Consumer 26 - Total $ 6,889 $ 7,693 No loans classified and reported as troubled debt restructured within the twelve months prior to September 30, 2016 defaulted during the three-month or nine-month periods ended September 30, 2016. Likewise, no loans classified and reported as troubled debt restructured within the twelve months prior to September 30, 2015 defaulted during the three-month or nine-month periods ended September 30, 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 September 30, 2016, had a total allowance allocation of $314 thousand, compared with $177 thousand at December 31, 2015. At September 30, 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 September 30, 2016 and December 31, 2015. (in thousands) September 30, 2016 30-59 days past due 60-89 days past due 90 or more days past due (includes) non-accrual) Total past due Current Total loans Recorded investment > 90 days and accruing Commercial and industrial $ 40 $ 140 $ 2,177 $ 2,357 $ 706,151 $ 708,508 $ - Construction and development, excluding 235 214 910 1,359 170,635 171,994 - Undeveloped land - - 654 654 19,339 19,993 - Real estate mortgage Commercial investment 380 171 94 645 509,483 510,128 - Owner occupied commercial 1,220 331 1,548 3,099 409,634 412,733 - 1-4 family residential 1,292 966 954 3,212 242,017 245,229 34 Home equity - first lien - - 46 46 54,791 54,837 46 Home equity - junior lien 641 31 560 1,232 64,373 65,605 - Subtotal: Real estate mortgage 3,533 1,499 3,202 8,234 1,280,298 1,288,532 80 Consumer 16 1 26 43 33,636 33,679 - Total $ 3,824 $ 1,854 $ 6,969 $ 12,647 $ 2,210,059 $ 2,222,706 $ 80 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 290 140 278 708 436,281 436,989 - Owner occupied commercial - - 2,761 2,761 417,905 420,666 - 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 September 30, 2016 and December 31, 2015, the internally assigned risk grades of loans by category were as follows: (in thousands) September 30, 2016 Pass OAEM Substandard Substandard non-performing Doubtful Total loans Commercial and industrial $ 684,445 $ 15,290 $ 5,658 $ 3,115 $ - $ 708,508 Construction and development, excluding undeveloped land 170,755 - 329 910 - 171,994 Undeveloped land 19,338 - 1 654 - 19,993 Real estate mortgage Commercial investment 508,150 1,884 - 94 - 510,128 Owner occupied commercial 401,383 8,294 1,508 1,548 - 412,733 1-4 family residential 244,275 - - 954 - 245,229 Home equity - first lien 54,791 - - 46 - 54,837 Home equity - junior lien 65,045 - - 560 - 65,605 Subtotal: Real estate mortgage 1,273,644 10,178 1,508 3,202 - 1,288,532 Consumer 33,592 - - 87 - 33,679 Total $ 2,181,774 $ 25,468 $ 7,496 $ 7,968 $ - $ 2,222,706 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 434,528 2,183 - 278 - 436,989 Owner occupied commercial 397,357 17,135 3,413 2,761 - 420,666 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 - Deposits
Note 4 - Deposits | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Deposit Liabilities Disclosures [Text Block] | (4) Deposits The composition of interest bearing deposits outstanding at September 30, 2016 (unaudited) and December 31, 2015 are as follows: September 30, December 31, (In thousands) 2016 2015 Interest bearing demand $ 665,360 $ 737,347 Savings 136,503 127,496 Money market 662,416 655,729 Time deposits: less than $100,000 150,466 161,738 $100,000-$250,000 61,366 66,636 Greater than $250,000 34,408 38,988 Total time deposits 246,240 267,362 Total interest bearing deposits $ 1,710,519 $ 1,787,934 Maturities of time deposits of $100,000 or more outstanding at September 30, 2016 are summarized as follows: (In thousands) Amount 3 months or less $ 20,746 Over 3 through 6 months 13,345 Over 6 through 12 months 30,556 Over 12 months 31,127 Total $ 95,774 |
Note 5 - Securities Sold Under
Note 5 - Securities Sold Under Agreements to Repurchase | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Securities Sold Under Agreements To Repurchase [Text Block] | (5) 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 $67.3 million and $64.5 million at September 30, 2016 and December 31, 2015, respectively. Bancorp enters into sales of securities under agreement to repurchase at a specified future date. At September 30, 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 6 - Federal Home Loan Bank
Note 6 - Federal Home Loan Bank Advances | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Federal Home Loan Bank Advances, Disclosure [Text Block] | (6) Federal Home Loan Bank Advances Bancorp had outstanding borrowings totaling of $51.4 million and $43.5 million at September 30, 2016 and December 31, 2015, respectively, via 14 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 $21.4 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) September 30, 2016 December 31, 2015 Year Advance Fixed Rate Advance Fixed Rate 2016 $ 30,000 0.55 % $ 30,000 0.55 % 2020 1,802 2.23 1,838 2.23 2021 377 2.12 429 2.12 2024 2,713 2.36 2,865 2.36 2025 6,160 2.43 6,991 2.44 2026 9,000 1.99 - - 2028 1,314 1.48 1,345 1.48 Total $ 51,366 1.22 % $ 43,468 1.09 % In addition to the fixed-rate advances listed above, Bancorp had a $60 million cash management advance from the FHLB. This advance matured in the first week of October 2016 and was used to manage Bancorp’s overall cash position. Due to the short nature of the advance, it was recorded on the consolidated balance sheet within Federal funds purchased and other short-term borrowings. Advances from the FHLB are collateralized by certain commercial and residential real estate mortgage loans totaling $651.1 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 September 30, 2016, the amount of available credit from the FHLB totaled $366.5 million. |
Note 7 - Other Comprehensive In
Note 7 - Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | (7) Other Comprehensive Income The following table illustrates activity within the balances in accumulated other comprehensive income by component, and is shown for the nine months ended September 30, 2016 and 2015. (in thousands) Net unrealized gains on securities available-for-sale Net unrealized gains (losses) on cash flow hedges Minimum pension liability adjustment Total Balance at December 31, 2014 $ 2,456 $ 16 $ (387 ) $ 2,085 Net current period other comprehensive gain (loss) 1,270 (250 ) - 1,020 Balance at September 30, 2015 $ 3,726 $ (234 ) $ (387 ) $ 3,105 Balance at December 31, 2015 $ 965 $ (60 ) $ (273 ) $ 632 Net current period other comprehensive income gain (loss) 4,110 (301 ) - 3,809 Balance at September 30, 2016 $ 5,075 $ (361 ) $ (273 ) $ 4,441 |
Note 8 - Derivative Financial I
Note 8 - Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | (8) 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 rising 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 nine 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, collateral, borrower credit limits and monitoring procedures, and does not expect any counterparties to fail their obligations. At September 30, 2016 and December 31, 2015, Bancorp had outstanding undesignated interest rate swap contracts as follows: (dollar amounts in thousands) Receiving Paying September 30, December 31, September 30, December 31, 2016 2015 2016 2015 Notional amount $ 38,706 $ 10,788 $ 38,706 $ 10,788 Weighted average maturity (years) 10.2 6.9 10.2 6.9 Fair value $ (1,372 ) $ (461 ) $ 1,372 $ 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, 2013 and ends December, 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, 2015 and matures December, 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 September 30, 2016 and December 31, 2015. (dollars in thousands) Notional amount Maturity date Receive (variable) index Pay fixed swap rate Fair value September 30, 2016 Fair value December 31, 2015 $ 10,000 12/6/2016 US 3 Month LIBOR 0.72 % $ 2 $ 8 20,000 12/6/2020 US 3 Month LIBOR 1.79 % (558 ) (101 ) $ 30,000 1.43 % $ (556 ) $ (93 ) |
Note 9 - Goodwill and Intangibl
Note 9 - Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | (9) 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. Bancorp recorded a gross core deposit intangible totaling $2.5 million as a result of its 2013 acquisition of THE BANCorp, Inc. This intangible is being amortized over the expected life of the underlying deposits to which the intangible is attributable. At September 30, 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 September 30, 2016 and December 31, 2015 were $2.3 million and $3.1 million, respectively. Total outstanding principal balances of loans serviced for others were $374.4 million and $410.8 million at September 30, 2016, and December 31, 2015, respectively. Changes in the net carrying amount of MSRs for the nine months ended September 30, 2016 and 2015 are shown in the following table: For the nine months ended September 30, (in thousands) 2016 2015 Balance at beginning of period $ 1,018 $ 1,131 Additions for mortgage loans sold 105 306 Amortization (192 ) (569 ) Balance at September 30 $ 931 $ 868 |
Note 10 - Defined Benefit Retir
Note 10 - Defined Benefit Retirement Plan | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | (10) 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 September 30, 2016 and 2015, respectively. For the nine months ended September 30, 2016 and 2015, the net periodic benefit costs totaled $100 thousand and $107 thousand, respectively. |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | (11) Commitments and Contingent Liabilities As of September 30, 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 $646.6 million including standby letters of credit of $14.5 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 September 30, 2016, Bancorp has accrued $317 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 September 30, 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 12 - Preferred Stock
Note 12 - Preferred Stock | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | (12) 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 13 - Stock Split
Note 13 - Stock Split | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note, Stock Split [Text Block] | (13) Stock Split On April 29, 2016 Bancorp declared a 3 for 2 stock split to be effected as a 50% stock dividend to shareholders of record on May 13, 2016, payable May 27, 2016. Share and per share information has been adjusted for this split. |
Note 14 - Stock-based Compensat
Note 14 - Stock-based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | (14) 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 September 30, 2016, there were 388,339 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. 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 For nine months ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Stock-based compensation expense before income taxes $ 573 $ 566 $ 1,646 $ 1,561 Less: deferred tax benefit (200 ) (198 ) (576 ) (546 ) Reduction of net income $ 373 $ 368 $ 1,070 $ 1,015 Bancorp expects to record an additional $541 thousand of stock-based compensation expense in 2016 for equity grants outstanding as of September 30, 2016. As of September 30, 2016, Bancorp has $4.2 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 $1.6 million and $2.0 million from the exercise of options during the first nine 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 SARs activity and related information for the nine months ended September 30, 2016 follows: Options and SARs (in thousands) Exercise price Weighted average exercise price Aggregate intrinsic value (in thousands) Weighted average fair value Weighted average remaining contractual life (in years) At December 31, 2015 Vested and exercisable 656 $ 14.02 - 19.44 $ 15.75 $ 6,191 $ 3.39 3.7 Unvested 266 15.24 - 24.55 18.66 1,733 3.29 7.7 Total outstanding 922 14.02 - 24.55 16.59 7,924 3.36 4.8 Granted 87 25.76 25.76 629 3.56 Exercised (190 ) 14.02 - 17.89 16.36 2,405 3.71 Forfeited (3 ) 14.02 - 15.84 15.18 33 2.94 At September 30, 2016 Vested and exercisable 556 14.02 - 24.56 15.83 9,533 3.25 4.0 Unvested 260 15.24 - 25.76 21.48 2,979 3.43 8.0 Total outstanding 816 14.02 - 25.76 17.63 $ 12,512 3.31 5.3 Vested year-to-date 92 15.24 - 24.56 17.46 $ 1,432 3.14 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. A summary of activity for the periods ending December 31, 2015 and September 30, 2016 for restricted shares of common stock granted to officers is outlined in the following table: Number Grant date weighted- average cost Unvested at December 31, 2014 171,139 $ 16.63 Shares awarded 52,898 22.99 Restrictions lapsed and shares released (61,205 ) 15.89 Shares forfeited (6,974 ) 18.97 Unvested at December 31, 2015 155,858 $ 18.98 Shares awarded 51,122 25.78 Restrictions lapsed and shares released (48,711 ) 17.94 Shares forfeited (12,007 ) 20.69 Unvested at September 30, 2016 146,262 $ 21.55 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 $ 17.61 50,024 2015 3 20.02 36,337 2016 3 22.61 27,663 In the first quarter of 2016, Bancorp awarded 8,144 RSUs to directors of Bancorp with a grant date fair value of $200 thousand. In the second quarter of 2016, 1,018 RSUs were cancelled, leaving 7,126 RSUs outstanding with a grant date fair value of $175 thousand. |
Note 15 - Net Income Per Share
Note 15 - Net Income Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | (15) Net Income Per Share The following table reflects, for the three and nine months ended September 30, 2016 and 2015, net income (numerator) and average shares outstanding (denominator) for basic and diluted net income per share computations: Three months ended Nine months ended (In thousands, except per share data) September 30, September 30, 2016 2015 2016 2015 Net income $ 10,467 $ 9,284 $ 30,411 $ 27,541 Average shares outstanding 22,385 22,131 22,325 22,056 Dilutive securities 418 348 386 354 Average shares outstanding including dilutive securities 22,803 22,479 22,711 22,410 Net income per share, basic $ 0.47 $ 0.42 $ 1.36 $ 1.25 Net income per share, diluted $ 0.46 $ 0.41 $ 1.34 $ 1.23 |
Note 16 - Segments
Note 16 - Segments | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (16) Segments Bancorp’s principal activities include commercial banking and wealth 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. Wealth management and trust provides financial 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 and nine month periods ended September 30, 2016 and 2015 follows: Wealth Commercial management (in thousands) banking and trust Total Three months ended September 30, 2016 Net interest income $ 24,690 $ 70 $ 24,760 Provision for loan losses 1,250 - 1,250 Wealth management and trust services - 4,800 4,800 All other non-interest income 6,558 - 6,558 Non-interest expense 17,722 2,796 20,518 Income before income taxes 12,276 2,074 14,350 Income tax expense 3,142 741 3,883 Net income $ 9,134 $ 1,333 $ 10,467 Three months ended September 30, 2015 Net interest income $ 22,034 $ 47 $ 22,081 Provision (credit) for loan losses - - - Wealth management and trust services - 4,373 4,373 All other non-interest income 5,612 - 5,612 Non-interest expense 15,785 2,645 18,430 Income before income taxes 11,861 1,775 13,636 Income tax expense 3,720 632 4,352 Net income $ 8,141 $ 1,143 $ 9,284 Wealth Commercial management (in thousands) banking and trust Total Nine months ended September 30, 2016 Net interest income $ 71,985 $ 194 $ 72,179 Provision for loan losses 2,500 - 2,500 Wealth management and trust services - 14,219 14,219 All other non-interest income 17,999 - 17,999 Non-interest expense 51,914 8,337 60,251 Income before income taxes 35,570 6,076 41,646 Income tax expense 9,064 2,171 11,235 Net income $ 26,506 $ 3,905 $ 30,411 Nine months ended September 30, 2015 Net interest income $ 65,350 $ 146 $ 65,496 Provision (credit) for loan losses - - - Wealth management and trust services - 13,576 13,576 All other non-interest income 16,301 - 16,301 Non-interest expense 46,991 8,085 55,076 Income before income taxes 34,660 5,637 40,297 Income tax expense 10,749 2,007 12,756 Net income $ 23,911 $ 3,630 $ 27,541 |
Note 17 - Income Taxes
Note 17 - Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | (17) Income Taxes Components of income tax expense from operations were as follows: Three months ended Nine months ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Current income tax expense Federal $ 4,363 $ 4,057 $ 10,958 $ 11,017 State 287 140 597 413 Total current income tax expense 4,650 4,197 11,555 11,430 Deferred income tax expense (benefit) Federal (692 ) 147 (302 ) 1,240 State (75 ) 8 (18 ) 86 Total deferred income tax expense (benefit) (767 ) 155 (320 ) 1,326 Change in valuation allowance - - - - Total income tax expense $ 3,883 $ 4,352 $ 11,235 $ 12,756 An analysis of the difference between statutory and effective income tax rates for the nine months ended September 30, 2016 and 2015 follows: Nine months ended September 30, 2016 2015 U.S. federal statutory tax rate 35.0 % 35.0 % Tax exempt interest income (1.3 ) (1.4 ) Tax credits (9.4 ) (2.4 ) Increase in cash surrender value of life insurance (0.9 ) (0.6 ) State income taxes, net of federal benefit 0.9 0.8 Other, net 2.7 0.3 Effective income tax rate 27.0 % 31.7 % 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. 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. As of September 30, 2016 and December 31, 2015, the gross amount of unrecognized tax benefits was immaterial to the consolidated financial statements of the company. Federal and state income tax returns are subject to examination for the years after 2011. |
Note 18 - Assets and Liabilitie
Note 18 - Assets and Liabilities Measured and Reported at Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Fair Value, Measurement Inputs, Disclosure [Text Block] | (18) 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 maximum use of observable inputs and minimum 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 September 30, 2016 Assets Total Level 1 Level 2 Level 3 Investment securities available-for-sale Government sponsored enterprise obligations $ 320,729 $ - $ 320,729 $ - Mortgage-backed securities - government agencies 161,077 - 161,077 - Obligations of states and political subdivisions 59,167 - 59,167 - Corporate equity securities 708 708 - - Total investment securities available-for-sale 541,681 708 540,973 - Interest rate swaps 1,372 - 1,372 - Total assets $ 543,053 $ 708 $ 542,345 $ - Liabilities Interest rate swaps $ 1,928 $ - $ 1,928 $ - (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 September 30, 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 September 30, 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 September 30, 2016 or December 31, 2015. See Note 9 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 September 30, 2016, total impaired loans with a valuation allowance were $4.1 million, and the specific allowance totaled $1.8 million, resulting in a fair value of $2.3 million, compared with 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 September 30, 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 September 30, 2016 Losses for 9 month period ended Total Level 1 Level 2 Level 3 September 30, 2016 Impaired loans $ 2,299 $ - $ - $ 2,299 $ (1,612 ) Other real estate owned 4,301 - - 4,301 (62 ) Total $ 6,600 $ - $ - $ 6,600 $ (1,674 ) (in thousands) Fair value at December 31, 2015 Losses for 9 month period ended Total Level 1 Level 2 Level 3 September 30, 2015 Impaired loans $ 2,058 $ - $ - $ 2,058 $ (1,147 ) Other real estate owned 3,782 - - 3,782 Total $ 5,840 $ - $ - $ 5,840 $ (1,147 ) For the securities portfolio, Bancorp monitors the valuation technique used 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 September 30, 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 September 30, 2016, the significant unobservable inputs used in the fair value measurements are presented below. Fair Valuation unobservable average of (Dollars in thousands) Value technique input input Impaired loans - collateral dependent $ 2,299 Appraisal Appraisal discounts 12.3 % Other real estate owned 4,301 Appraisal Appraisal discounts 19.2 |
Note 19 - Disclosure of Financi
Note 19 - Disclosure of Financial Instruments Not Reported at Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | (19) 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 September 30, 2016 amount Fair value Level 1 Level 2 Level 3 Financial assets Cash and short-term investments $ 57,893 $ 57,893 $ 57,893 $ - $ - Mortgage loans held for sale 5,959 6,206 - 6,206 - Federal Home Loan Bank stock and other securities 6,347 6,347 - 6,347 - Loans, net 2,198,337 2,232,177 - - 2,232,177 Accrued interest receivable 6,952 6,952 6,952 - - Financial liabilities Deposits 2,390,597 2,390,642 - - 2,390,642 Short-term borrowings 143,702 143,702 - 143,702 - FHLB advances 51,366 53,091 - 53,091 - Accrued interest payable 116 116 116 - - (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 20 - Regulatory Matters
Note 20 - Regulatory Matters | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | (20) 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 regulation 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 capital requirements can result in certain mandatory, and possibly discretionary, corrective actions prescribed by regulation or determined to be necessary by regulators, which could materially affect the unaudited consolidated financial statements. In 2013, the Federal Reserve Board and the FDIC approved rules that substantially amended regulatory risk-based capital rules applicable to Bancorp and the Bank. The rules implemented 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. Basel III regulatory capital reforms became effective for Bancorp and the 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 September 30, 2016. The following table sets forth consolidated Bancorp’s and the Bank’s risk based capital amounts and ratios as of September 30, 2016 and December 31, 2015. (Dollars in thousands) Actual Minimum for adequately capitalized Minimum for well capitalized September 30, 2016 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (1) Consolidated $ 330,597 13.05 % $ 202,665 8.00 % NA NA Bank 319,526 12.64 202,232 8.00 $ 252,790 10.00 Common equity tier 1 risk-based capital Consolidated 305,886 12.07 114,042 4.50 NA NA Bank 294,815 11.66 113,779 4.50 151,706 6.00 Tier 1 risk-based capital (1) Consolidated 305,886 12.07 152,056 6.00 NA NA Bank 294,815 11.66 151,706 6.00 151,706 6.00 Leverage (2) Consolidated 305,886 10.63 115,103 4.00 NA NA Bank 294,815 10.26 114,938 4.00 143,672 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 21 - Subsequent Event
Note 21 - Subsequent Event | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | (21) Subsequent Event In 2004, Bancorp invested $1.4 million in Indiana Business Bancorp (“IBB”), and included the investment in other assets. Due to a decline in the market value of the stock, Bancorp recorded an impairment charge totaling $866 thousand in 2008. In April 2016, Lizton Financial Corporation (“Lizton”) and IBB entered into an agreement for Lizton to acquire all of the shares of IBB for $7.25 per share. The transaction was completed in October 2016, resulting in a $588 thousand pre-tax recovery, which was recorded in other income in the fourth quarter of 2016. |
Note 2 - Securities (Tables)
Note 2 - Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | (in thousands) Amortized Unrealized September 30, 2016 cost Gains Losses Fair value Government sponsored enterprise obligations $ 316,763 $ 4,080 $ 114 $ 320,729 Mortgage-backed securities - government agencies 158,478 2,767 168 161,077 Obligations of states and political subdivisions 57,979 1,229 41 59,167 Corporate equity securities 653 55 - 708 Total securities available for sale $ 533,873 $ 8,131 $ 323 $ 541,681 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) Securities available-for-sale Amortized cost Fair value Due within 1 year $ 135,930 $ 136,043 Due after 1 but within 5 years 108,969 110,468 Due after 5 but within 10 years 19,293 19,633 Due after 10 years 110,550 113,752 Mortgage-backed securities – government agencies 158,478 161,077 Corporate equity securities 653 708 Total securities available-for-sale $ 533,873 $ 541,681 |
Schedule of Unrealized Loss on Investments [Table Text Block] | (in thousands) Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2016 value losses value losses value losses Government sponsored enterprise obligations $ 135,908 $ 78 $ 3,834 $ 36 $ 139,742 $ 114 Mortgage-backed securities - government agencies 14,945 36 10,729 132 25,674 168 Obligations of states and political subdivisions 8,717 30 1,489 11 10,206 41 Total temporarily impaired securities $ 159,570 $ 144 $ 16,052 $ 179 $ 175,622 $ 323 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) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | (in thousands) September 30, 2016 December 31, 2015 Commercial and industrial $ 708,508 $ 644,398 Construction and development, excluding undeveloped land 171,994 134,482 Undeveloped land 19,993 21,185 Real estate mortgage: Commercial investment 510,128 436,989 Owner occupied commercial 412,733 420,666 1-4 family residential 245,229 226,575 Home equity - first lien 54,837 50,115 Home equity - junior lien 65,605 63,066 Subtotal: Real estate mortgage 1,288,532 1,197,411 Consumer 33,679 35,531 Total loans $ 2,222,706 $ 2,033,007 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | (in thousands) Type of loan September 30, 2016 Commercial and industrial Construction and development excluding undeveloped land Undeveloped land Real estate mortgage Consumer Total Loans $ 708,508 $ 171,994 $ 19,993 $ 1,288,532 $ 33,679 $ 2,222,706 Loans collectively evaluated for impairment $ 705,335 $ 171,084 $ 19,338 $ 1,284,798 $ 33,592 $ 2,214,147 Loans individually evaluated for impairment $ 3,115 $ 910 $ 655 $ 3,121 $ 87 $ 7,888 Loans acquired with deteriorated credit quality $ 58 $ - $ - $ 613 $ - $ 671 Commercial and 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) 2,415 229 (128 ) (131 ) 115 2,500 Charge-offs (627 ) - - (426 ) (419 ) (1,472 ) Recoveries 252 21 - 318 309 900 At September 30, 2016 $ 10,685 $ 2,010 $ 686 $ 10,636 $ 352 $ 24,369 Allowance for loans collectively evaluated for impairment $ 9,296 $ 1,865 $ 652 $ 10,483 $ 291 $ 22,587 Allowance for loans individually evaluated for impairment $ 1,389 $ 145 $ 34 $ 153 $ 61 $ 1,782 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 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 ) (41 ) Reclassifications from (to) non-accretable discount - - Disposals - - Balance at September 30, 2016 $ - $ 148 |
Impaired Financing Receivables [Table Text Block] | (in thousands) Unpaid Average September 30, 2016 Recorded investment principal balance Related allowance recorded investment Loans with no related allowance recorded: Commercial and industrial $ 999 $ 1,440 $ - $ 2,354 Construction and development, excluding undeveloped land - - - - Undeveloped land 149 149 - 37 Real estate mortgage Commercial investment 94 94 - 214 Owner occupied commercial 1,060 1,497 - 1,434 1-4 family residential 920 920 - 980 Home equity - first lien - - - 3 Home equity - junior lien 559 559 - 299 Subtotal: Real estate mortgage 2,633 3,070 - 2,930 Consumer 26 26 - 22 Subtotal $ 3,807 $ 4,685 $ - $ 5,343 Loans with an allowance recorded: Commercial and industrial $ 2,116 $ 2,590 $ 1,389 $ 1,433 Construction and development, excluding undeveloped land 910 910 145 228 Undeveloped land 506 506 34 127 Real estate mortgage Commercial investment - - - - Owner occupied commercial 488 488 153 693 1-4 family residential - - - - Home equity - first lien - - - - Home equity - junior lien - - - - Subtotal: Real estate mortgage 488 488 153 693 Consumer 61 61 61 65 Subtotal $ 4,081 $ 4,555 $ 1,782 $ 2,546 Total: Commercial and industrial $ 3,115 $ 4,030 $ 1,389 $ 3,787 Construction and development, excluding undeveloped land 910 910 145 228 Undeveloped land 655 655 34 164 Real estate mortgage - - - - Commercial investment 94 94 - 214 Owner occupied commercial 1,548 1,985 153 2,127 1-4 family residential 920 920 - 980 Home equity - first lien - - - 3 Home equity - junior lien 559 559 - 299 Subtotal: Real estate mortgage 3,121 3,558 153 3,623 Consumer 87 87 61 87 Total $ 7,888 $ 9,240 $ 1,782 $ 7,889 (in thousands) Unpaid Average December 31, 2015 Recorded investment principal balance Related allowance recorded 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) September 30, 2016 December 31, 2015 Commercial and industrial $ 2,177 $ 3,643 Construction and development, excluding undeveloped land 910 - Undeveloped land 655 - Real estate mortgage Commercial investment 94 278 Owner occupied commercial 1,548 2,761 1-4 family residential 920 906 Home equity - first lien - 13 Home equity - junior lien 559 92 Subtotal: Real estate mortgage 3,121 4,050 Consumer 26 - Total $ 6,889 $ 7,693 |
Past Due Financing Receivables [Table Text Block] | (in thousands) September 30, 2016 30-59 days past due 60-89 days past due 90 or more days past due (includes) non-accrual) Total past due Current Total loans Recorded investment > 90 days and accruing Commercial and industrial $ 40 $ 140 $ 2,177 $ 2,357 $ 706,151 $ 708,508 $ - Construction and development, excluding 235 214 910 1,359 170,635 171,994 - Undeveloped land - - 654 654 19,339 19,993 - Real estate mortgage Commercial investment 380 171 94 645 509,483 510,128 - Owner occupied commercial 1,220 331 1,548 3,099 409,634 412,733 - 1-4 family residential 1,292 966 954 3,212 242,017 245,229 34 Home equity - first lien - - 46 46 54,791 54,837 46 Home equity - junior lien 641 31 560 1,232 64,373 65,605 - Subtotal: Real estate mortgage 3,533 1,499 3,202 8,234 1,280,298 1,288,532 80 Consumer 16 1 26 43 33,636 33,679 - Total $ 3,824 $ 1,854 $ 6,969 $ 12,647 $ 2,210,059 $ 2,222,706 $ 80 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 290 140 278 708 436,281 436,989 - Owner occupied commercial - - 2,761 2,761 417,905 420,666 - 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) September 30, 2016 Pass OAEM Substandard Substandard non-performing Doubtful Total loans Commercial and industrial $ 684,445 $ 15,290 $ 5,658 $ 3,115 $ - $ 708,508 Construction and development, excluding undeveloped land 170,755 - 329 910 - 171,994 Undeveloped land 19,338 - 1 654 - 19,993 Real estate mortgage Commercial investment 508,150 1,884 - 94 - 510,128 Owner occupied commercial 401,383 8,294 1,508 1,548 - 412,733 1-4 family residential 244,275 - - 954 - 245,229 Home equity - first lien 54,791 - - 46 - 54,837 Home equity - junior lien 65,045 - - 560 - 65,605 Subtotal: Real estate mortgage 1,273,644 10,178 1,508 3,202 - 1,288,532 Consumer 33,592 - - 87 - 33,679 Total $ 2,181,774 $ 25,468 $ 7,496 $ 7,968 $ - $ 2,222,706 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 434,528 2,183 - 278 - 436,989 Owner occupied commercial 397,357 17,135 3,413 2,761 - 420,666 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 - Deposits (Tables)
Note 4 - Deposits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Deposits [Table Text Block] | September 30, December 31, (In thousands) 2016 2015 Interest bearing demand $ 665,360 $ 737,347 Savings 136,503 127,496 Money market 662,416 655,729 Time deposits: less than $100,000 150,466 161,738 $100,000-$250,000 61,366 66,636 Greater than $250,000 34,408 38,988 Total time deposits 246,240 267,362 Total interest bearing deposits $ 1,710,519 $ 1,787,934 |
Schedule of Time Deposits of $100,000 or More, Contractual Maturities [Table Text Block] | (In thousands) Amount 3 months or less $ 20,746 Over 3 through 6 months 13,345 Over 6 through 12 months 30,556 Over 12 months 31,127 Total $ 95,774 |
Note 6 - Federal Home Loan Ba34
Note 6 - Federal Home Loan Bank Advances (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Maturities and Average Effective Interest Rates of Federal Home Loan Bank Advances [Table Text Block] | (In thousands) September 30, 2016 December 31, 2015 Year Advance Fixed Rate Advance Fixed Rate 2016 $ 30,000 0.55 % $ 30,000 0.55 % 2020 1,802 2.23 1,838 2.23 2021 377 2.12 429 2.12 2024 2,713 2.36 2,865 2.36 2025 6,160 2.43 6,991 2.44 2026 9,000 1.99 - - 2028 1,314 1.48 1,345 1.48 Total $ 51,366 1.22 % $ 43,468 1.09 % |
Note 7 - Other Comprehensive 35
Note 7 - Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | (in thousands) Net unrealized gains on securities available-for-sale Net unrealized gains (losses) on cash flow hedges Minimum pension liability adjustment Total Balance at December 31, 2014 $ 2,456 $ 16 $ (387 ) $ 2,085 Net current period other comprehensive gain (loss) 1,270 (250 ) - 1,020 Balance at September 30, 2015 $ 3,726 $ (234 ) $ (387 ) $ 3,105 Balance at December 31, 2015 $ 965 $ (60 ) $ (273 ) $ 632 Net current period other comprehensive income gain (loss) 4,110 (301 ) - 3,809 Balance at September 30, 2016 $ 5,075 $ (361 ) $ (273 ) $ 4,441 |
Note 8 - Derivative Financial36
Note 8 - Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Designated as Hedging Instrument [Member] | |
Notes Tables | |
Schedule of Interest Rate Derivatives [Table Text Block] | (dollars in thousands) Notional amount Maturity date Receive (variable) index Pay fixed swap rate Fair value September 30, 2016 Fair value December 31, 2015 $ 10,000 12/6/2016 US 3 Month LIBOR 0.72 % $ 2 $ 8 20,000 12/6/2020 US 3 Month LIBOR 1.79 % (558 ) (101 ) $ 30,000 1.43 % $ (556 ) $ (93 ) |
Not Designated as Hedging Instrument [Member] | |
Notes Tables | |
Schedule of Interest Rate Derivatives [Table Text Block] | (dollar amounts in thousands) Receiving Paying September 30, December 31, September 30, December 31, 2016 2015 2016 2015 Notional amount $ 38,706 $ 10,788 $ 38,706 $ 10,788 Weighted average maturity (years) 10.2 6.9 10.2 6.9 Fair value $ (1,372 ) $ (461 ) $ 1,372 $ 461 |
Note 9 - Goodwill and Intangi37
Note 9 - Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Valuation Allowance for Impairment of Recognized Servicing Assets [Table Text Block] | For the nine months ended September 30, (in thousands) 2016 2015 Balance at beginning of period $ 1,018 $ 1,131 Additions for mortgage loans sold 105 306 Amortization (192 ) (569 ) Balance at September 30 $ 931 $ 868 |
Note 14 - Stock-based Compens38
Note 14 - Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | For three months ended For nine months ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Stock-based compensation expense before income taxes $ 573 $ 566 $ 1,646 $ 1,561 Less: deferred tax benefit (200 ) (198 ) (576 ) (546 ) Reduction of net income $ 373 $ 368 $ 1,070 $ 1,015 |
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] | Options and SARs (in thousands) Exercise price Weighted average exercise price Aggregate intrinsic value (in thousands) Weighted average fair value Weighted average remaining contractual life (in years) At December 31, 2015 Vested and exercisable 656 $ 14.02 - 19.44 $ 15.75 $ 6,191 $ 3.39 3.7 Unvested 266 15.24 - 24.55 18.66 1,733 3.29 7.7 Total outstanding 922 14.02 - 24.55 16.59 7,924 3.36 4.8 Granted 87 25.76 25.76 629 3.56 Exercised (190 ) 14.02 - 17.89 16.36 2,405 3.71 Forfeited (3 ) 14.02 - 15.84 15.18 33 2.94 At September 30, 2016 Vested and exercisable 556 14.02 - 24.56 15.83 9,533 3.25 4.0 Unvested 260 15.24 - 25.76 21.48 2,979 3.43 8.0 Total outstanding 816 14.02 - 25.76 17.63 $ 12,512 3.31 5.3 Vested year-to-date 92 15.24 - 24.56 17.46 $ 1,432 3.14 |
Schedule of Nonvested Share Activity [Table Text Block] | Number Grant date weighted- average cost Unvested at December 31, 2014 171,139 $ 16.63 Shares awarded 52,898 22.99 Restrictions lapsed and shares released (61,205 ) 15.89 Shares forfeited (6,974 ) 18.97 Unvested at December 31, 2015 155,858 $ 18.98 Shares awarded 51,122 25.78 Restrictions lapsed and shares released (48,711 ) 17.94 Shares forfeited (12,007 ) 20.69 Unvested at September 30, 2016 146,262 $ 21.55 |
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 $ 17.61 50,024 2015 3 20.02 36,337 2016 3 22.61 27,663 |
Note 15 - Net Income Per Share
Note 15 - Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Nine months ended (In thousands, except per share data) September 30, September 30, 2016 2015 2016 2015 Net income $ 10,467 $ 9,284 $ 30,411 $ 27,541 Average shares outstanding 22,385 22,131 22,325 22,056 Dilutive securities 418 348 386 354 Average shares outstanding including dilutive securities 22,803 22,479 22,711 22,410 Net income per share, basic $ 0.47 $ 0.42 $ 1.36 $ 1.25 Net income per share, diluted $ 0.46 $ 0.41 $ 1.34 $ 1.23 |
Note 16 - Segments (Tables)
Note 16 - Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Wealth Commercial management (in thousands) banking and trust Total Three months ended September 30, 2016 Net interest income $ 24,690 $ 70 $ 24,760 Provision for loan losses 1,250 - 1,250 Wealth management and trust services - 4,800 4,800 All other non-interest income 6,558 - 6,558 Non-interest expense 17,722 2,796 20,518 Income before income taxes 12,276 2,074 14,350 Income tax expense 3,142 741 3,883 Net income $ 9,134 $ 1,333 $ 10,467 Three months ended September 30, 2015 Net interest income $ 22,034 $ 47 $ 22,081 Provision (credit) for loan losses - - - Wealth management and trust services - 4,373 4,373 All other non-interest income 5,612 - 5,612 Non-interest expense 15,785 2,645 18,430 Income before income taxes 11,861 1,775 13,636 Income tax expense 3,720 632 4,352 Net income $ 8,141 $ 1,143 $ 9,284 Wealth Commercial management (in thousands) banking and trust Total Nine months ended September 30, 2016 Net interest income $ 71,985 $ 194 $ 72,179 Provision for loan losses 2,500 - 2,500 Wealth management and trust services - 14,219 14,219 All other non-interest income 17,999 - 17,999 Non-interest expense 51,914 8,337 60,251 Income before income taxes 35,570 6,076 41,646 Income tax expense 9,064 2,171 11,235 Net income $ 26,506 $ 3,905 $ 30,411 Nine months ended September 30, 2015 Net interest income $ 65,350 $ 146 $ 65,496 Provision (credit) for loan losses - - - Wealth management and trust services - 13,576 13,576 All other non-interest income 16,301 - 16,301 Non-interest expense 46,991 8,085 55,076 Income before income taxes 34,660 5,637 40,297 Income tax expense 10,749 2,007 12,756 Net income $ 23,911 $ 3,630 $ 27,541 |
Note 17 - Income Taxes (Tables)
Note 17 - Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Three months ended Nine months ended September 30, September 30, (in thousands) 2016 2015 2016 2015 Current income tax expense Federal $ 4,363 $ 4,057 $ 10,958 $ 11,017 State 287 140 597 413 Total current income tax expense 4,650 4,197 11,555 11,430 Deferred income tax expense (benefit) Federal (692 ) 147 (302 ) 1,240 State (75 ) 8 (18 ) 86 Total deferred income tax expense (benefit) (767 ) 155 (320 ) 1,326 Change in valuation allowance - - - - Total income tax expense $ 3,883 $ 4,352 $ 11,235 $ 12,756 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Nine months ended September 30, 2016 2015 U.S. federal statutory tax rate 35.0 % 35.0 % Tax exempt interest income (1.3 ) (1.4 ) Tax credits (9.4 ) (2.4 ) Increase in cash surrender value of life insurance (0.9 ) (0.6 ) State income taxes, net of federal benefit 0.9 0.8 Other, net 2.7 0.3 Effective income tax rate 27.0 % 31.7 % |
Note 18 - Assets and Liabilit42
Note 18 - Assets and Liabilities Measured and Reported at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | (in thousands) Fair value at September 30, 2016 Assets Total Level 1 Level 2 Level 3 Investment securities available-for-sale Government sponsored enterprise obligations $ 320,729 $ - $ 320,729 $ - Mortgage-backed securities - government agencies 161,077 - 161,077 - Obligations of states and political subdivisions 59,167 - 59,167 - Corporate equity securities 708 708 - - Total investment securities available-for-sale 541,681 708 540,973 - Interest rate swaps 1,372 - 1,372 - Total assets $ 543,053 $ 708 $ 542,345 $ - Liabilities Interest rate swaps $ 1,928 $ - $ 1,928 $ - (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 September 30, 2016 Losses for 9 month period ended Total Level 1 Level 2 Level 3 September 30, 2016 Impaired loans $ 2,299 $ - $ - $ 2,299 $ (1,612 ) Other real estate owned 4,301 - - 4,301 (62 ) Total $ 6,600 $ - $ - $ 6,600 $ (1,674 ) (in thousands) Fair value at December 31, 2015 Losses for 9 month period ended Total Level 1 Level 2 Level 3 September 30, 2015 Impaired loans $ 2,058 $ - $ - $ 2,058 $ (1,147 ) Other real estate owned 3,782 - - 3,782 Total $ 5,840 $ - $ - $ 5,840 $ (1,147 ) |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | Fair Valuation unobservable average of (Dollars in thousands) Value technique input input Impaired loans - collateral dependent $ 2,299 Appraisal Appraisal discounts 12.3 % Other real estate owned 4,301 Appraisal Appraisal discounts 19.2 |
Note 19 - Disclosure of Finan43
Note 19 - Disclosure of Financial Instruments Not Reported at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | (in thousands) Carrying September 30, 2016 amount Fair value Level 1 Level 2 Level 3 Financial assets Cash and short-term investments $ 57,893 $ 57,893 $ 57,893 $ - $ - Mortgage loans held for sale 5,959 6,206 - 6,206 - Federal Home Loan Bank stock and other securities 6,347 6,347 - 6,347 - Loans, net 2,198,337 2,232,177 - - 2,232,177 Accrued interest receivable 6,952 6,952 6,952 - - Financial liabilities Deposits 2,390,597 2,390,642 - - 2,390,642 Short-term borrowings 143,702 143,702 - 143,702 - FHLB advances 51,366 53,091 - 53,091 - Accrued interest payable 116 116 116 - - (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 20 - Regulatory Matters (T
Note 20 - Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2016 Amount Ratio Amount Ratio Amount Ratio Total risk-based capital (1) Consolidated $ 330,597 13.05 % $ 202,665 8.00 % NA NA Bank 319,526 12.64 202,232 8.00 $ 252,790 10.00 Common equity tier 1 risk-based capital Consolidated 305,886 12.07 114,042 4.50 NA NA Bank 294,815 11.66 113,779 4.50 151,706 6.00 Tier 1 risk-based capital (1) Consolidated 305,886 12.07 152,056 6.00 NA NA Bank 294,815 11.66 151,706 6.00 151,706 6.00 Leverage (2) Consolidated 305,886 10.63 115,103 4.00 NA NA Bank 294,815 10.26 114,938 4.00 143,672 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 Significa45
Note 1 - Summary of Significant Accounting Policies (Details Textual) | 9 Months Ended |
Sep. 30, 2016 | |
Period Look-back, Quarters | 12 |
Period Look-back, Extended, Quarters | 24 |
Note 2 - Securities (Details Te
Note 2 - Securities (Details Textual) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Number of Securities Sold | 0 | ||
Held-to-maturity Securities | $ 0 | $ 0 | |
Available-for-sale Securities, Gross Realized Gains | 0 | ||
Available-for-sale Securities, Gross Realized Losses | 0 | ||
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | 0 | ||
Proceeds from Sale of Available-for-sale Securities | $ 5,934,000 | 5,900,000 | |
Available-for-sale Securities Pledged as Collateral | $ 323,300,000 | $ 380,700,000 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 42 | 70 |
Note 2 - Securities - Available
Note 2 - Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Amortized cost | $ 316,763 | $ 251,190 |
Unrealized Gains | 4,080 | 1,468 |
Unrealized Losses | 114 | 765 |
Fair value | 320,729 | 251,893 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Amortized cost | 158,478 | 170,139 |
Unrealized Gains | 2,767 | 1,143 |
Unrealized Losses | 168 | 1,654 |
Fair value | 161,077 | 169,628 |
US States and Political Subdivisions Debt Securities [Member] | ||
Amortized cost | 57,979 | 62,410 |
Unrealized Gains | 1,229 | 1,342 |
Unrealized Losses | 41 | 50 |
Fair value | 59,167 | 63,702 |
Common Stock [Member] | ||
Amortized cost | 653 | 653 |
Unrealized Gains | 55 | |
Unrealized Losses | ||
Fair value | 708 | 653 |
US Treasury Securities [Member] | ||
Amortized cost | 79,999 | |
Unrealized Gains | 1 | |
Unrealized Losses | ||
Fair value | 80,000 | |
Amortized cost | 533,873 | 564,391 |
Unrealized Gains | 8,131 | 3,954 |
Unrealized Losses | 323 | 2,469 |
Fair value | $ 541,681 | $ 565,876 |
Note 2 - Securities - Availab48
Note 2 - Securities - Available-for-sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Due within 1 year, amortized cost | $ 135,930 | |
Due within 1 year, fair value | 136,043 | |
Due after 1 but within 5 years, amortized cost | 108,969 | |
Due after 1 but within 5 years, fair value | 110,468 | |
Due after 5 but within 10 years, amortized cost | 19,293 | |
Due after 5 but within 10 years, fair value | 19,633 | |
Due after 10 years, amortized cost | 110,550 | |
Due after 10 years, fair value | 113,752 | |
Mortgage-backed securities – government agencies, amortized cost | 158,478 | |
Mortgage-backed securities – government agencies, fair value | 161,077 | |
Corporate equity securities, amortized cost | 653 | |
Corporate equity securities, fair value | 708 | |
Total securities available-for-sale, amortized cost | 533,873 | $ 564,391 |
Total securities available-for-sale, fair value | $ 541,681 | $ 565,876 |
Note 2 - Securities - Securitie
Note 2 - Securities - Securities With Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Less than 12 months, fair value | $ 135,908 | $ 102,098 |
Less than 12 months, Unrealized losses | 78 | 500 |
12 months or more, Fair value | 3,834 | 8,469 |
12 months or more, Unrealized losses | 36 | 265 |
Fair value | 139,742 | 110,567 |
Unrealized losses | 114 | 765 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Less than 12 months, fair value | 14,945 | 49,774 |
Less than 12 months, Unrealized losses | 36 | 662 |
12 months or more, Fair value | 10,729 | 29,936 |
12 months or more, Unrealized losses | 132 | 992 |
Fair value | 25,674 | 79,710 |
Unrealized losses | 168 | 1,654 |
US States and Political Subdivisions Debt Securities [Member] | ||
Less than 12 months, fair value | 8,717 | 13,225 |
Less than 12 months, Unrealized losses | 30 | 31 |
12 months or more, Fair value | 1,489 | 1,955 |
12 months or more, Unrealized losses | 11 | 19 |
Fair value | 10,206 | 15,180 |
Unrealized losses | 41 | 50 |
Less than 12 months, fair value | 159,570 | 165,097 |
Less than 12 months, Unrealized losses | 144 | 1,193 |
12 months or more, Fair value | 16,052 | 40,360 |
12 months or more, Unrealized losses | 179 | 1,276 |
Fair value | 175,622 | 205,457 |
Unrealized losses | $ 323 | $ 2,469 |
Note 3 - Loans (Details Textual
Note 3 - Loans (Details Textual) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015 | Sep. 30, 2016USD ($) | Sep. 30, 2015 | Dec. 31, 2015USD ($) | |
Loans and Leases Receivable, Impaired, Commitment to Lend | $ 0 | $ 0 | $ 0 | ||
Financing Receivable, Modifications, Number of Contracts | 0 | 0 | 0 | 0 | |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 | 0 | 0 | |
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | $ 80,000 | $ 80,000 | 176,000 | ||
Financing Receivable, Modifications, Recorded Investment | 999,000 | 999,000 | 1,100,000 | ||
Allowance for Credit Losses, Change in Method of Calculating Impairment | $ 314,000 | $ 314,000 | $ 177,000 |
Note 3 - Loans - Loans by Loan
Note 3 - Loans - Loans by Loan Portfolio Class (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Commercial and Industrial Portfolio Segment [Member] | ||
Loans | $ 708,508 | $ 644,398 |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | ||
Loans | 171,994 | 134,482 |
Undevelopment Land Portfolio Segment [Member] | ||
Loans | 19,993 | 21,185 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Investment [Member] | ||
Loans | 510,128 | 436,989 |
Real Estate Mortgage Portfolio Segment [Member] | Owner Occupied Commercial [Member] | ||
Loans | 412,733 | 420,666 |
Real Estate Mortgage Portfolio Segment [Member] | One to Four Family Residential [Member] | ||
Loans | 245,229 | 226,575 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity First Lien [Member] | ||
Loans | 54,837 | 50,115 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity Junior Lien [Member] | ||
Loans | 65,605 | 63,066 |
Real Estate Mortgage Portfolio Segment [Member] | ||
Loans | 1,288,532 | 1,197,411 |
Consumer Portfolio Segment [Member] | ||
Loans | 33,679 | 35,531 |
Loans | $ 2,222,706 | $ 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 | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
Commercial and Industrial Portfolio Segment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Loans | $ 58 | $ 3 | |||||
Balance | |||||||
Balance | |||||||
Allowance for loans acquired with deteriorated credit quality | |||||||
Commercial and Industrial Portfolio Segment [Member] | |||||||
Loans | 708,508 | 644,398 | |||||
Loans collectively evaluated for impairment | 705,335 | 639,760 | |||||
Loans individually evaluated for impairment | 3,115 | 4,635 | |||||
Balance | 8,645 | $ 11,819 | 11,819 | ||||
Provision for loan losses | 2,415 | 793 | |||||
Charge-offs | (627) | (4,065) | |||||
Recoveries | 252 | 98 | |||||
Balance | 10,685 | 10,685 | 8,645 | ||||
Allowance for loans collectively evaluated for impairment | 9,296 | 8,377 | |||||
Allowance for loans individually evaluated for impairment | 1,389 | 268 | |||||
Allowance for loans acquired with deteriorated credit quality | 10,685 | 8,645 | 11,819 | 8,645 | 10,685 | 8,645 | |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Loans | 322 | ||||||
Balance | |||||||
Balance | |||||||
Allowance for loans acquired with deteriorated credit quality | |||||||
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | |||||||
Loans | 171,994 | 134,482 | |||||
Loans collectively evaluated for impairment | 171,084 | 134,160 | |||||
Loans individually evaluated for impairment | 910 | ||||||
Balance | 1,760 | 721 | 721 | ||||
Provision for loan losses | 229 | 1,065 | |||||
Charge-offs | (26) | ||||||
Recoveries | 21 | ||||||
Balance | 2,010 | 2,010 | 1,760 | ||||
Allowance for loans collectively evaluated for impairment | 1,865 | 1,760 | |||||
Allowance for loans individually evaluated for impairment | 145 | ||||||
Allowance for loans acquired with deteriorated credit quality | 2,010 | 1,760 | 721 | 1,760 | 2,010 | 1,760 | |
Undevelopment Land Portfolio Segment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Loans | |||||||
Balance | |||||||
Balance | |||||||
Allowance for loans acquired with deteriorated credit quality | |||||||
Undevelopment Land Portfolio Segment [Member] | |||||||
Loans | 19,993 | 21,185 | |||||
Loans collectively evaluated for impairment | 19,338 | 21,185 | |||||
Loans individually evaluated for impairment | 655 | ||||||
Balance | 814 | 1,545 | 1,545 | ||||
Provision for loan losses | (128) | (2,131) | |||||
Charge-offs | |||||||
Recoveries | 1,400 | ||||||
Balance | 686 | 686 | 814 | ||||
Allowance for loans collectively evaluated for impairment | 652 | 814 | |||||
Allowance for loans individually evaluated for impairment | 34 | ||||||
Allowance for loans acquired with deteriorated credit quality | 686 | 814 | 1,545 | 814 | 686 | 814 | |
Real Estate Mortgage Portfolio Segment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Loans | 613 | 497 | |||||
Balance | |||||||
Balance | |||||||
Allowance for loans acquired with deteriorated credit quality | |||||||
Real Estate Mortgage Portfolio Segment [Member] | |||||||
Loans | 1,288,532 | 1,197,411 | |||||
Loans collectively evaluated for impairment | 1,284,798 | 1,192,864 | |||||
Loans individually evaluated for impairment | 3,121 | 4,050 | |||||
Balance | 10,875 | 10,541 | 10,541 | ||||
Provision for loan losses | (131) | 872 | |||||
Charge-offs | (426) | (693) | |||||
Recoveries | 318 | 155 | |||||
Balance | 10,636 | 10,636 | 10,875 | ||||
Allowance for loans collectively evaluated for impairment | 10,483 | 10,667 | |||||
Allowance for loans individually evaluated for impairment | 153 | 208 | |||||
Allowance for loans acquired with deteriorated credit quality | 10,636 | 10,875 | 10,541 | 10,875 | 10,636 | 10,875 | |
Consumer Portfolio Segment [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Loans | |||||||
Balance | |||||||
Balance | |||||||
Allowance for loans acquired with deteriorated credit quality | |||||||
Consumer Portfolio Segment [Member] | |||||||
Loans | 33,679 | 35,531 | |||||
Loans collectively evaluated for impairment | 33,592 | 35,463 | |||||
Loans individually evaluated for impairment | 87 | 68 | |||||
Balance | 347 | 294 | 294 | ||||
Provision for loan losses | 115 | 151 | |||||
Charge-offs | (419) | (597) | |||||
Recoveries | 309 | 499 | |||||
Balance | 352 | 352 | 347 | ||||
Allowance for loans collectively evaluated for impairment | 291 | 279 | |||||
Allowance for loans individually evaluated for impairment | 61 | 68 | |||||
Allowance for loans acquired with deteriorated credit quality | 352 | 347 | 294 | 347 | 352 | 347 | |
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Loans | 671 | 822 | |||||
Balance | |||||||
Balance | |||||||
Allowance for loans acquired with deteriorated credit quality | |||||||
Loans | 2,222,706 | 2,033,007 | |||||
Loans collectively evaluated for impairment | 2,214,147 | 2,023,432 | |||||
Loans individually evaluated for impairment | 7,888 | 8,753 | |||||
Balance | 22,441 | 24,920 | 24,920 | ||||
Provision for loan losses | 1,250 | 2,500 | 750 | ||||
Charge-offs | (1,472) | (5,381) | |||||
Recoveries | 900 | 2,152 | |||||
Balance | 24,369 | 24,369 | 22,441 | ||||
Allowance for loans collectively evaluated for impairment | 22,587 | 21,897 | |||||
Allowance for loans individually evaluated for impairment | 1,782 | 544 | |||||
Allowance for loans acquired with deteriorated credit quality | $ 24,369 | $ 24,369 | $ 24,920 | $ 22,441 | $ 24,369 | $ 22,441 |
Note 3 - Loans - Acquired Impai
Note 3 - Loans - Acquired Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Accretable discount | $ 3 | $ 62 |
Non- accretable discount | 189 | 266 |
Accretion | (3) | (59) |
Non- accretable discount, accretion | (41) | (77) |
Accretable discount | 3 | |
Non- accretable discount | $ 148 | $ 189 |
Note 3 - Loans - Loans Individu
Note 3 - Loans - Loans Individually Evaluated for Impairment (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Commercial and Industrial Portfolio Segment [Member] | ||
Loans with no related allowance recorded, recorded investment | $ 999,000 | $ 3,119,000 |
Loans with no related allowance recorded, unpaid principal balance | 1,440,000 | 3,859,000 |
Loans with no related allowance recorded, average recorded investment | 2,354,000 | 1,414,000 |
Loans with an allowance recorded, recorded investment | 2,116,000 | 1,516,000 |
Loans with an allowance recorded, unpaid principal balance | 2,590,000 | 3,087,000 |
Related allowance | 1,389,000 | 268,000 |
Loans with an allowance recorded, average recorded investment | 1,433,000 | 4,612,000 |
Recorded investment | 3,115,000 | 4,635,000 |
Unpaid principal balance | 4,030,000 | 6,946,000 |
Average recorded investment | 3,787,000 | 6,026,000 |
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 999,000 | 3,119,000 |
Loans with no related allowance recorded, unpaid principal balance | 1,440,000 | 3,859,000 |
Loans with no related allowance recorded, average recorded investment | 2,354,000 | 1,414,000 |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | 2,116,000 | 1,516,000 |
Loans with an allowance recorded, unpaid principal balance | 2,590,000 | 3,087,000 |
Related allowance | 1,389,000 | 268,000 |
Loans with an allowance recorded, average recorded investment | 1,433,000 | 4,612,000 |
Total: | ||
Recorded investment | 3,115,000 | 4,635,000 |
Unpaid principal balance | 4,030,000 | 6,946,000 |
Related allowance | 1,389,000 | 268,000 |
Average recorded investment | 3,787,000 | 6,026,000 |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | ||
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, recorded investment | 910,000 | |
Loans with an allowance recorded, unpaid principal balance | 910,000 | |
Related allowance | 145,000 | |
Loans with an allowance recorded, average recorded investment | 228,000 | 368,000 |
Recorded investment | 910,000 | |
Unpaid principal balance | 910,000 | 151,000 |
Average recorded investment | 389,000 | |
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 | 910,000 | |
Loans with an allowance recorded, unpaid principal balance | 910,000 | |
Related allowance | 145,000 | |
Loans with an allowance recorded, average recorded investment | 228,000 | 368,000 |
Total: | ||
Recorded investment | 910,000 | |
Unpaid principal balance | 910,000 | 151,000 |
Related allowance | 145,000 | |
Average recorded investment | 389,000 | |
Undevelopment Land Portfolio Segment [Member] | ||
Loans with no related allowance recorded, recorded investment | 149,000 | |
Loans with no related allowance recorded, unpaid principal balance | 149,000 | |
Loans with no related allowance recorded, average recorded investment | 37,000 | |
Loans with an allowance recorded, recorded investment | 506,000 | |
Loans with an allowance recorded, unpaid principal balance | 506,000 | |
Related allowance | 34,000 | |
Loans with an allowance recorded, average recorded investment | 127,000 | |
Recorded investment | 655,000 | |
Unpaid principal balance | 655,000 | |
Average recorded investment | ||
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 149,000 | |
Loans with no related allowance recorded, unpaid principal balance | 149,000 | |
Loans with no related allowance recorded, average recorded investment | 37,000 | |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | 506,000 | |
Loans with an allowance recorded, unpaid principal balance | 506,000 | |
Related allowance | 34,000 | |
Loans with an allowance recorded, average recorded investment | 127,000 | |
Total: | ||
Recorded investment | 655,000 | |
Unpaid principal balance | 655,000 | |
Related allowance | 34,000 | |
Average recorded investment | ||
Real Estate Mortgage Portfolio Segment [Member] | Commercial Investment [Member] | ||
Loans with no related allowance recorded, recorded investment | 94,000 | 278,000 |
Loans with no related allowance recorded, unpaid principal balance | 94,000 | 278,000 |
Loans with no related allowance recorded, average recorded investment | 214,000 | 178,000 |
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 | |
Recorded investment | 94,000 | 278,000 |
Unpaid principal balance | 94,000 | 278,000 |
Average recorded investment | 214,000 | 270,000 |
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 94,000 | 278,000 |
Loans with no related allowance recorded, unpaid principal balance | 94,000 | 278,000 |
Loans with no related allowance recorded, average recorded investment | 214,000 | 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 | 94,000 | 278,000 |
Unpaid principal balance | 94,000 | 278,000 |
Related allowance | ||
Average recorded investment | 214,000 | 270,000 |
Real Estate Mortgage Portfolio Segment [Member] | Owner Occupied Commercial [Member] | ||
Loans with no related allowance recorded, recorded investment | 1,060,000 | 1,743,000 |
Loans with no related allowance recorded, unpaid principal balance | 1,497,000 | 2,713,000 |
Loans with no related allowance recorded, average recorded investment | 1,434,000 | 1,622,000 |
Loans with an allowance recorded, recorded investment | 488,000 | 1,018,000 |
Loans with an allowance recorded, unpaid principal balance | 488,000 | 1,018,000 |
Related allowance | 153,000 | 208,000 |
Loans with an allowance recorded, average recorded investment | 693,000 | 1,266,000 |
Recorded investment | 1,548,000 | 2,761,000 |
Unpaid principal balance | 1,985,000 | 3,731,000 |
Average recorded investment | 2,127,000 | 2,888,000 |
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 1,060,000 | 1,743,000 |
Loans with no related allowance recorded, unpaid principal balance | 1,497,000 | 2,713,000 |
Loans with no related allowance recorded, average recorded investment | 1,434,000 | 1,622,000 |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | 488,000 | 1,018,000 |
Loans with an allowance recorded, unpaid principal balance | 488,000 | 1,018,000 |
Related allowance | 153,000 | 208,000 |
Loans with an allowance recorded, average recorded investment | 693,000 | 1,266,000 |
Total: | ||
Recorded investment | 1,548,000 | 2,761,000 |
Unpaid principal balance | 1,985,000 | 3,731,000 |
Related allowance | 153,000 | 208,000 |
Average recorded investment | 2,127,000 | 2,888,000 |
Real Estate Mortgage Portfolio Segment [Member] | One to Four Family Residential [Member] | ||
Loans with no related allowance recorded, recorded investment | 920,000 | 906,000 |
Loans with no related allowance recorded, unpaid principal balance | 920,000 | 906,000 |
Loans with no related allowance recorded, average recorded investment | 980,000 | 661,000 |
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 | |
Recorded investment | 920,000 | 906,000 |
Unpaid principal balance | 920,000 | 906,000 |
Average recorded investment | 980,000 | 849,000 |
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 920,000 | 906,000 |
Loans with no related allowance recorded, unpaid principal balance | 920,000 | 906,000 |
Loans with no related allowance recorded, average recorded investment | 980,000 | 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 | 920,000 | 906,000 |
Unpaid principal balance | 920,000 | 906,000 |
Related allowance | ||
Average recorded investment | 980,000 | 849,000 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity First Lien [Member] | ||
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 | 3,000 | 37,000 |
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 | ||
Recorded investment | 13,000 | |
Unpaid principal balance | 13,000 | |
Average recorded investment | 3,000 | 37,000 |
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 | 3,000 | 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 | 3,000 | 37,000 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity Junior Lien [Member] | ||
Loans with no related allowance recorded, recorded investment | 559,000 | 92,000 |
Loans with no related allowance recorded, unpaid principal balance | 559,000 | 92,000 |
Loans with no related allowance recorded, average recorded investment | 299,000 | 69,000 |
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 | ||
Recorded investment | 559,000 | 92,000 |
Unpaid principal balance | 559,000 | 92,000 |
Average recorded investment | 299,000 | 69,000 |
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 559,000 | 92,000 |
Loans with no related allowance recorded, unpaid principal balance | 559,000 | 92,000 |
Loans with no related allowance recorded, average recorded investment | 299,000 | 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 | 559,000 | 92,000 |
Unpaid principal balance | 559,000 | 92,000 |
Related allowance | ||
Average recorded investment | 299,000 | 69,000 |
Real Estate Mortgage Portfolio Segment [Member] | ||
Loans with no related allowance recorded, recorded investment | 2,633,000 | 3,032,000 |
Loans with no related allowance recorded, unpaid principal balance | 3,070,000 | 4,002,000 |
Loans with no related allowance recorded, average recorded investment | 2,930,000 | 2,567,000 |
Loans with an allowance recorded, recorded investment | 488,000 | 1,018,000 |
Loans with an allowance recorded, unpaid principal balance | 488,000 | 1,018,000 |
Related allowance | 153,000 | 208,000 |
Loans with an allowance recorded, average recorded investment | 693,000 | 1,546,000 |
Recorded investment | 3,121,000 | 4,050,000 |
Unpaid principal balance | 3,558,000 | 5,020,000 |
Average recorded investment | 3,623,000 | 4,113,000 |
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 2,633,000 | 3,032,000 |
Loans with no related allowance recorded, unpaid principal balance | 3,070,000 | 4,002,000 |
Loans with no related allowance recorded, average recorded investment | 2,930,000 | 2,567,000 |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | 488,000 | 1,018,000 |
Loans with an allowance recorded, unpaid principal balance | 488,000 | 1,018,000 |
Related allowance | 153,000 | 208,000 |
Loans with an allowance recorded, average recorded investment | 693,000 | 1,546,000 |
Total: | ||
Recorded investment | 3,121,000 | 4,050,000 |
Unpaid principal balance | 3,558,000 | 5,020,000 |
Related allowance | 153,000 | 208,000 |
Average recorded investment | 3,623,000 | 4,113,000 |
Consumer Portfolio Segment [Member] | ||
Loans with no related allowance recorded, recorded investment | 26,000 | |
Loans with no related allowance recorded, unpaid principal balance | 26,000 | |
Loans with no related allowance recorded, average recorded investment | 22,000 | 3,000 |
Loans with an allowance recorded, recorded investment | 61,000 | 68,000 |
Loans with an allowance recorded, unpaid principal balance | 61,000 | 68,000 |
Related allowance | 61,000 | 68,000 |
Loans with an allowance recorded, average recorded investment | 65,000 | 72,000 |
Recorded investment | 87,000 | 68,000 |
Unpaid principal balance | 87,000 | 68,000 |
Average recorded investment | 87,000 | 75,000 |
Loans with no related allowance recorded: | ||
Loans with no related allowance recorded, recorded investment | 26,000 | |
Loans with no related allowance recorded, unpaid principal balance | 26,000 | |
Loans with no related allowance recorded, average recorded investment | 22,000 | 3,000 |
Loans with an allowance recorded: | ||
Loans with an allowance recorded, recorded investment | 61,000 | 68,000 |
Loans with an allowance recorded, unpaid principal balance | 61,000 | 68,000 |
Related allowance | 61,000 | 68,000 |
Loans with an allowance recorded, average recorded investment | 65,000 | 72,000 |
Total: | ||
Recorded investment | 87,000 | 68,000 |
Unpaid principal balance | 87,000 | 68,000 |
Related allowance | 61,000 | 68,000 |
Average recorded investment | 87,000 | 75,000 |
Loans with no related allowance recorded, recorded investment | 3,807,000 | 6,151,000 |
Loans with no related allowance recorded, unpaid principal balance | 4,685,000 | 8,012,000 |
Loans with no related allowance recorded, average recorded investment | 5,343,000 | 4,005,000 |
Loans with an allowance recorded, recorded investment | 4,081,000 | 2,602,000 |
Loans with an allowance recorded, unpaid principal balance | 4,555,000 | 4,173,000 |
Related allowance | 1,782,000 | 544,000 |
Loans with an allowance recorded, average recorded investment | 2,546,000 | 6,598,000 |
Recorded investment | 7,888,000 | 8,753,000 |
Unpaid principal balance | 9,240,000 | 12,185,000 |
Average recorded investment | 7,889,000 | 10,603,000 |
Loans with no related allowance recorded, recorded investment | 3,807,000 | 6,151,000 |
Loans with no related allowance recorded, unpaid principal balance | 4,685,000 | 8,012,000 |
Loans with no related allowance recorded, average recorded investment | 5,343,000 | 4,005,000 |
Loans with an allowance recorded, recorded investment | 4,081,000 | 2,602,000 |
Loans with an allowance recorded, unpaid principal balance | 4,555,000 | 4,173,000 |
Related allowance | 1,782,000 | 544,000 |
Loans with an allowance recorded, average recorded investment | 2,546,000 | 6,598,000 |
Recorded investment | 7,888,000 | 8,753,000 |
Unpaid principal balance | 9,240,000 | 12,185,000 |
Related allowance | 1,782,000 | 544,000 |
Average recorded investment | $ 7,889,000 | $ 10,603,000 |
Note 3 - Loans - Non-accrual Lo
Note 3 - Loans - Non-accrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Commercial and Industrial Portfolio Segment [Member] | ||
Non-accrual loans | $ 2,177 | $ 3,643 |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | ||
Non-accrual loans | 910 | |
Undevelopment Land Portfolio Segment [Member] | ||
Non-accrual loans | 655 | |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Investment [Member] | ||
Non-accrual loans | 94 | 278 |
Real Estate Mortgage Portfolio Segment [Member] | Owner Occupied Commercial [Member] | ||
Non-accrual loans | 1,548 | 2,761 |
Real Estate Mortgage Portfolio Segment [Member] | One to Four Family Residential [Member] | ||
Non-accrual loans | 920 | 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 | 559 | 92 |
Real Estate Mortgage Portfolio Segment [Member] | ||
Non-accrual loans | 3,121 | 4,050 |
Consumer Portfolio Segment [Member] | ||
Non-accrual loans | 26 | |
Non-accrual loans | $ 6,889 | $ 7,693 |
Note 3 - Loans - Aging of the R
Note 3 - Loans - Aging of the Recorded Investment in Loans (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Commercial and Industrial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | $ 40,000 | $ 238,000 |
Commercial and Industrial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 140,000 | 327,000 |
Commercial and Industrial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 2,177,000 | 3,643,000 |
Commercial and Industrial Portfolio Segment [Member] | ||
Past due | 2,357,000 | 4,208,000 |
Current | 706,151,000 | 640,190,000 |
Loans | 708,508,000 | 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 | 235,000 | |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 214,000 | |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 910,000 | |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | ||
Past due | 1,359,000 | |
Current | 170,635,000 | 134,482,000 |
Loans | 171,994,000 | 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 | ||
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 | 654,000 | |
Undevelopment Land Portfolio Segment [Member] | ||
Past due | 654,000 | |
Current | 19,339,000 | 21,185,000 |
Loans | 19,993,000 | 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 | 380,000 | 290,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Owner Occupied Commercial [Member] | ||
Past due | 1,220,000 | |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | One to Four Family Residential [Member] | ||
Past due | 1,292,000 | 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 | 641,000 | 285,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | 3,533,000 | 1,757,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Investment [Member] | ||
Past due | 171,000 | 140,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Owner Occupied Commercial [Member] | ||
Past due | 331,000 | |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | One to Four Family Residential [Member] | ||
Past due | 966,000 | 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 | 31,000 | 173,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 1,499,000 | 458,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Investment [Member] | ||
Past due | 94,000 | 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 | 1,548,000 | 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 | 954,000 | 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 | 46,000 | 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 | 560,000 | 92,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 3,202,000 | 4,226,000 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Investment [Member] | ||
Past due | 645,000 | 708,000 |
Current | 509,483,000 | 436,281,000 |
Loans | 510,128,000 | 436,989,000 |
Recorded investment greater than 90 days and accruing | ||
Real Estate Mortgage Portfolio Segment [Member] | Owner Occupied Commercial [Member] | ||
Past due | 3,099,000 | 2,761,000 |
Current | 409,634,000 | 417,905,000 |
Loans | 412,733,000 | 420,666,000 |
Recorded investment greater than 90 days and accruing | ||
Real Estate Mortgage Portfolio Segment [Member] | One to Four Family Residential [Member] | ||
Past due | 3,212,000 | 2,323,000 |
Current | 242,017,000 | 224,252,000 |
Loans | 245,229,000 | 226,575,000 |
Recorded investment greater than 90 days and accruing | 34,000 | 176,000 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity First Lien [Member] | ||
Past due | 46,000 | 99,000 |
Current | 54,791,000 | 50,016,000 |
Loans | 54,837,000 | 50,115,000 |
Recorded investment greater than 90 days and accruing | 46,000 | |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity Junior Lien [Member] | ||
Past due | 1,232,000 | 550,000 |
Current | 64,373,000 | 62,516,000 |
Loans | 65,605,000 | 63,066,000 |
Recorded investment greater than 90 days and accruing | ||
Real Estate Mortgage Portfolio Segment [Member] | ||
Past due | 8,234,000 | 6,441,000 |
Current | 1,280,298,000 | 1,190,970,000 |
Loans | 1,288,532,000 | 1,197,411,000 |
Recorded investment greater than 90 days and accruing | 80,000 | 176,000 |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | 16,000 | 343,000 |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 1,000 | 8,000 |
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 26,000 | |
Consumer Portfolio Segment [Member] | ||
Past due | 43,000 | 351,000 |
Current | 33,636,000 | 35,180,000 |
Loans | 33,679,000 | 35,531,000 |
Recorded investment greater than 90 days and accruing | ||
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | 3,824,000 | 2,338,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 1,854,000 | 793,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 6,969,000 | 7,869,000 |
Past due | 12,647,000 | 11,000,000 |
Current | 2,210,059,000 | 2,022,007,000 |
Loans | 2,222,706,000 | 2,033,007,000 |
Recorded investment greater than 90 days and accruing | $ 80,000 | $ 176,000 |
Note 3 - Loans - Internally Ass
Note 3 - Loans - Internally Assigned Risk Grades of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Commercial and Industrial Portfolio Segment [Member] | Pass [Member] | ||
Loans | $ 684,445 | $ 612,853 |
Commercial and Industrial Portfolio Segment [Member] | Special Mention [Member] | ||
Loans | 15,290 | 19,672 |
Commercial and Industrial Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | ||
Loans | 5,658 | 7,238 |
Commercial and Industrial Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | ||
Loans | 3,115 | 4,635 |
Commercial and Industrial Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | ||
Commercial and Industrial Portfolio Segment [Member] | ||
Loans | 708,508 | 644,398 |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Pass [Member] | ||
Loans | 170,755 | 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 | 329 | 367 |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | ||
Loans | 910 | |
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | ||
Construction and Development Excluding Undeveloped Land Portfolio Segment [Member] | ||
Loans | 171,994 | 134,482 |
Undevelopment Land Portfolio Segment [Member] | Pass [Member] | ||
Loans | 19,338 | 20,513 |
Undevelopment Land Portfolio Segment [Member] | Special Mention [Member] | ||
Loans | 517 | |
Undevelopment Land Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | ||
Loans | 1 | 155 |
Undevelopment Land Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | ||
Loans | 654 | |
Undevelopment Land Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | ||
Undevelopment Land Portfolio Segment [Member] | ||
Loans | 19,993 | 21,185 |
Real Estate Mortgage Portfolio Segment [Member] | Pass [Member] | Commercial Investment [Member] | ||
Loans | 508,150 | 434,528 |
Real Estate Mortgage Portfolio Segment [Member] | Pass [Member] | Owner Occupied Commercial [Member] | ||
Loans | 401,383 | 397,357 |
Real Estate Mortgage Portfolio Segment [Member] | Pass [Member] | One to Four Family Residential [Member] | ||
Loans | 244,275 | 224,645 |
Real Estate Mortgage Portfolio Segment [Member] | Pass [Member] | Home Equity First Lien [Member] | ||
Loans | 54,791 | 50,102 |
Real Estate Mortgage Portfolio Segment [Member] | Pass [Member] | Home Equity Junior Lien [Member] | ||
Loans | 65,045 | 62,924 |
Real Estate Mortgage Portfolio Segment [Member] | Pass [Member] | ||
Loans | 1,273,644 | 1,169,556 |
Real Estate Mortgage Portfolio Segment [Member] | Special Mention [Member] | Commercial Investment [Member] | ||
Loans | 1,884 | 2,183 |
Real Estate Mortgage Portfolio Segment [Member] | Special Mention [Member] | Owner Occupied Commercial [Member] | ||
Loans | 8,294 | 17,135 |
Real Estate Mortgage Portfolio Segment [Member] | Special Mention [Member] | One to Four Family Residential [Member] | ||
Loans | 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 | |
Real Estate Mortgage Portfolio Segment [Member] | Special Mention [Member] | ||
Loans | 10,178 | 20,216 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | Commercial Investment [Member] | ||
Loans | ||
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Performing Financial Instruments [Member] | Owner Occupied Commercial [Member] | ||
Loans | 1,508 | 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 | 1,508 | 3,413 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | Commercial Investment [Member] | ||
Loans | 94 | 278 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | Owner Occupied Commercial [Member] | ||
Loans | 1,548 | 2,761 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | One to Four Family Residential [Member] | ||
Loans | 954 | 1,082 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | Home Equity First Lien [Member] | ||
Loans | 46 | 13 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | Home Equity Junior Lien [Member] | ||
Loans | 560 | 92 |
Real Estate Mortgage Portfolio Segment [Member] | Substandard [Member] | Nonperforming Financial Instruments [Member] | ||
Loans | 3,202 | 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 | 510,128 | 436,989 |
Real Estate Mortgage Portfolio Segment [Member] | Owner Occupied Commercial [Member] | ||
Loans | 412,733 | 420,666 |
Real Estate Mortgage Portfolio Segment [Member] | One to Four Family Residential [Member] | ||
Loans | 245,229 | 226,575 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity First Lien [Member] | ||
Loans | 54,837 | 50,115 |
Real Estate Mortgage Portfolio Segment [Member] | Home Equity Junior Lien [Member] | ||
Loans | 65,605 | 63,066 |
Real Estate Mortgage Portfolio Segment [Member] | ||
Loans | 1,288,532 | 1,197,411 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Loans | 33,592 | 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 | 87 | 68 |
Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Loans | ||
Consumer Portfolio Segment [Member] | ||
Loans | 33,679 | 35,531 |
Pass [Member] | ||
Loans | 2,181,774 | 1,971,727 |
Special Mention [Member] | ||
Loans | 25,468 | 41,178 |
Substandard [Member] | Performing Financial Instruments [Member] | ||
Loans | 7,496 | 11,173 |
Substandard [Member] | Nonperforming Financial Instruments [Member] | ||
Loans | 7,968 | 8,929 |
Doubtful [Member] | ||
Loans | ||
Loans | $ 2,222,706 | $ 2,033,007 |
Note 4 - Deposits - Composition
Note 4 - Deposits - Composition of Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Interest bearing demand | $ 665,360 | $ 737,347 |
Savings | 136,503 | 127,496 |
Money market | 662,416 | 655,729 |
Time deposits: | ||
less than $100,000 | 150,466 | 161,738 |
$100,000-$250,000 | 61,366 | 66,636 |
Greater than $250,000 | 34,408 | 38,988 |
Total time deposits | 246,240 | 267,362 |
Total interest bearing deposits | $ 1,710,519 | $ 1,787,934 |
Note 4 - Deposits - Maturities
Note 4 - Deposits - Maturities of Time Deposits of $100,000 or More (Details) $ in Thousands | Sep. 30, 2016USD ($) |
3 months or less | $ 20,746 |
Over 3 through 6 months | 13,345 |
Over 6 through 12 months | 30,556 |
Over 12 months | 31,127 |
Total | $ 95,774 |
Note 5 - Securities Sold Unde60
Note 5 - Securities Sold Under Agreements to Repurchase (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Securities Sold under Agreements to Repurchase | $ 67,315 | $ 64,526 |
Note 6 - Federal Home Loan Ba61
Note 6 - Federal Home Loan Bank Advances (Details Textual) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | |
Cash Mangament Advance from FHLB [Member] | ||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months | $ 60,000 | |
Advances from Federal Home Loan Banks | $ 51,366 | $ 43,468 |
Federal Home Loan Bank, Number of Separate Advances | 14 | |
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 | 21,400 | |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months | 30,000 | $ 30,000 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 651,100 | |
Federal Home Loan Bank, Advances, General Debt Obligations, Amount of Available, Unused Funds | $ 366,500 |
Note 6 - Federal Home Loan Ba62
Note 6 - Federal Home Loan Bank Advances - Contractual Maturities and Average Effective Rates of Outstanding Advances (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
2016 Advance | $ 30,000 | $ 30,000 |
2016 Fixed Rate | 0.55% | 0.55% |
2020 Advance | $ 1,802 | $ 1,838 |
2020 Fixed Rate | 2.23% | 2.23% |
2021 Advance | $ 377 | $ 429 |
2021 Fixed Rate | 2.12% | 2.12% |
2024 Advance | $ 2,713 | $ 2,865 |
2024 Fixed Rate | 2.36% | 2.36% |
2025 Advance | $ 6,160 | $ 6,991 |
2025 Fixed Rate | 2.43% | 2.44% |
2026 Advance | $ 9,000 | |
2026 Fixed Rate | 1.99% | |
2028 Advance | $ 1,314 | $ 1,345 |
2028 Fixed Rate | 1.48% | 1.48% |
Total advances | $ 51,366 | $ 43,468 |
Fixed Rate | 1.22% | 1.09% |
Note 7 - Other Comprehensive 63
Note 7 - Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Accumulated other comprehensive income (loss), beginning balance | $ 965 | $ 2,456 | ||
Net current period other comprehensive gain (loss) | 4,110 | 1,270 | ||
Accumulated other comprehensive income (loss), ending balance | $ 5,075 | $ 3,726 | 5,075 | 3,726 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Accumulated other comprehensive income (loss), beginning balance | (60) | 16 | ||
Net current period other comprehensive gain (loss) | (301) | (250) | ||
Accumulated other comprehensive income (loss), ending balance | (361) | (234) | (361) | (234) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Accumulated other comprehensive income (loss), beginning balance | (273) | (387) | ||
Net current period other comprehensive gain (loss) | ||||
Accumulated other comprehensive income (loss), ending balance | (273) | (387) | (273) | (387) |
Accumulated other comprehensive income (loss), beginning balance | 632 | 2,085 | ||
Net current period other comprehensive gain (loss) | (1,010) | 1,792 | 3,809 | 1,020 |
Accumulated other comprehensive income (loss), ending balance | $ 4,441 | $ 3,105 | $ 4,441 | $ 3,105 |
Note 8 - Derivative Financial64
Note 8 - Derivative Financial Instruments (Details Textual) - Cash Flow Hedging [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Sep. 30, 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 | |
Derivative, Notional Amount | $ 30,000 |
Note 8 - Derivative Financial65
Note 8 - Derivative Financial Instruments - Outstanding Undesignated Interest Rate Swap Contracts (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Receiving [Member] | ||
Notional amount | $ 38,706 | $ 10,788 |
Weighted average maturity (years) | 10 years 73 days | 6 years 328 days |
Fair value | $ (1,372) | $ (461) |
Paying [Member] | ||
Notional amount | $ 38,706 | $ 10,788 |
Weighted average maturity (years) | 10 years 73 days | 6 years 328 days |
Fair value | $ 1,372 | $ 461 |
Note 8 - Derivative Financial66
Note 8 - Derivative Financial Instruments - Derivative Position Designated As a Cash Flow Hedge (Details) - Designated as Hedging Instrument [Member] - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Interest Rate Swap, Maturing December 6, 2016 [Member] | |||
Notional amount | $ 10,000 | $ 10,000 | |
Receive (variable index) | US 3 Month LIBOR | ||
Pay fixed swap rate | 0.72% | ||
Fair value | $ 2 | $ 8 | |
Interest Rate Swap, Maturing December 6, 2020 [Member] | |||
Notional amount | $ 20,000 | 20,000 | |
Receive (variable index) | US 3 Month LIBOR | ||
Pay fixed swap rate | 1.79% | ||
Fair value | $ (558) | (101) | |
Notional amount | $ 30,000 | ||
Pay fixed swap rate | 1.43% | ||
Fair value | $ (556) | $ (93) |
Note 9 - Goodwill and Intangi67
Note 9 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Indiana Bank [Member] | Commercial Banking [Member] | |||
Goodwill | $ 682,000 | ||
THE BANCorp [Member] | Core Deposits [Member] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2,500,000 | ||
Core Deposits [Member] | |||
Finite-Lived Intangible Assets, Net | 1,500,000 | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | ||
Finite-lived Intangible Assets, Fair Value Disclosure | 2,300,000 | $ 3,100,000 | |
Loans Serviced for Others Outstanding Principal Balance | $ 374,400,000 | $ 410,800,000 |
Note 9 - Goodwill and Intangi68
Note 9 - Goodwill and Intangible Assets - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Balance at beginning of period | $ 1,018 | $ 1,131 |
Additions for mortgage loans sold | 105 | 306 |
Amortization | (192) | (569) |
Balance at September 30 | $ 931 | $ 868 |
Note 10 - Defined Benefit Ret69
Note 10 - Defined Benefit Retirement Plan (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
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 | $ 100 | $ 107 |
Note 11 - Commitments and Con70
Note 11 - Commitments and Contingent Liabilities (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Commitments to Extend Credit and Standby Letters of Credit [Member] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability | $ 646,600 | $ 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 | $ 14,500 | $ 12,800 |
Loss Contingency Accrual | $ 317 |
Note 12 - Preferred Stock (Deta
Note 12 - Preferred Stock (Details Textual) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Preferred Stock, No Par Value | $ 0 | $ 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Note 13 - Stock Split (Details
Note 13 - Stock Split (Details Textual) | Apr. 29, 2016 |
Stock Split To [Member] | |
Stock split from | 3 |
Stock Split From [Member] | |
Stock split from | 2 |
Stock Dividend, Percentage | 50.00% |
Note 14 - Stock-based Compens73
Note 14 - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
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 | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 51,122 | 52,898 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 146,262 | 155,858 | 171,139 | |||
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, Grants in Period | 8,144 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Fair Value Granted | $ 175 | $ 200 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Cancelled in Period | 1,018 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 7,126 | |||||
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 | 388,339 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expected Additional Compensation Cost Remainder of Year | $ 541 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 4,200 | |||||
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 | $ 1,600 | $ 2,000 |
Note 14 - Stock-based Compens74
Note 14 - Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock-based compensation expense before income taxes | $ 573 | $ 566 | $ 1,646 | $ 1,561 |
Less: deferred tax benefit | (200) | (198) | (576) | (546) |
Reduction of net income | $ 373 | $ 368 | $ 1,070 | $ 1,015 |
Note 14 - Stock-based Compens75
Note 14 - Stock-based Compensation - Fair Value Assumptions (Details) - Stock Options and Stock Appreciation Rights SARs [Member] | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 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 14 - Stock-based Compens76
Note 14 - Stock-based Compensation - Stock Option and SARs Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Award Vested and Exercisable [Member] | Minimum [Member] | ||
Vested and exercisable (in dollars per share) | $ 14.02 | $ 14.02 |
Granted (in dollars per share) | 14.02 | 14.02 |
Award Vested and Exercisable [Member] | Maximum [Member] | ||
Vested and exercisable (in dollars per share) | 24.56 | 19.44 |
Granted (in dollars per share) | $ 24.56 | $ 19.44 |
Award Vested and Exercisable [Member] | ||
Vested and exercisable (in shares) | 556 | 656 |
Vested and exercisable (in dollars per share) | $ 15.83 | $ 15.75 |
Vested and exercisable | $ 9,533 | $ 6,191 |
Vested and exercisable (in dollars per share) | $ 3.25 | $ 3.39 |
Vested and exercisable | 4 years | 3 years 255 days |
Granted (in dollars per share) | $ 15.83 | $ 15.75 |
Exercised (in shares) | (556) | (656) |
Award Unvested [Member] | Minimum [Member] | ||
Vested and exercisable (in dollars per share) | $ 15.24 | $ 15.24 |
Granted (in dollars per share) | 15.24 | 15.24 |
Award Unvested [Member] | Maximum [Member] | ||
Vested and exercisable (in dollars per share) | 25.76 | 24.55 |
Granted (in dollars per share) | $ 25.76 | $ 24.55 |
Award Unvested [Member] | ||
Vested and exercisable (in shares) | 260 | 266 |
Vested and exercisable (in dollars per share) | $ 21.48 | $ 18.66 |
Vested and exercisable (in dollars per share) | $ 3.43 | $ 3.29 |
Vested and exercisable | 8 years | 7 years 255 days |
Unvested | $ 2,979 | $ 1,733 |
Granted (in dollars per share) | $ 21.48 | $ 18.66 |
Exercised (in shares) | (260) | (266) |
Award Outstanding [Member] | Minimum [Member] | ||
Vested and exercisable (in dollars per share) | $ 14.02 | $ 14.02 |
Granted (in dollars per share) | 14.02 | 14.02 |
Award Outstanding [Member] | Maximum [Member] | ||
Vested and exercisable (in dollars per share) | 25.76 | 24.55 |
Granted (in dollars per share) | $ 25.76 | $ 24.55 |
Award Outstanding [Member] | ||
Vested and exercisable (in shares) | 816 | 922 |
Vested and exercisable (in dollars per share) | $ 17.63 | $ 16.59 |
Vested and exercisable (in dollars per share) | $ 3.31 | $ 3.36 |
Vested and exercisable | 5 years 109 days | 4 years 292 days |
Total outstanding | $ 12,512 | $ 7,924 |
Granted (in dollars per share) | $ 17.63 | $ 16.59 |
Exercised (in shares) | (816) | (922) |
Award Granted [Member] | ||
Vested and exercisable (in shares) | 87 | |
Vested and exercisable (in dollars per share) | $ 25.76 | |
Vested and exercisable (in dollars per share) | 3.56 | |
Granted (in dollars per share) | $ 25.76 | |
Granted | $ 629 | |
Exercised (in shares) | (87) | |
Award Exercised [Member] | Minimum [Member] | ||
Vested and exercisable (in dollars per share) | $ 14.02 | |
Granted (in dollars per share) | 14.02 | |
Award Exercised [Member] | Maximum [Member] | ||
Vested and exercisable (in dollars per share) | 17.89 | |
Granted (in dollars per share) | $ 17.89 | |
Award Exercised [Member] | ||
Vested and exercisable (in shares) | 190 | |
Vested and exercisable (in dollars per share) | $ 16.36 | |
Vested and exercisable (in dollars per share) | 3.71 | |
Granted (in dollars per share) | $ 16.36 | |
Exercised (in shares) | (190) | |
Exercised | $ 2,405 | |
Award Forfeited [Member] | Minimum [Member] | ||
Vested and exercisable (in dollars per share) | $ 14.02 | |
Granted (in dollars per share) | 14.02 | |
Award Forfeited [Member] | Maximum [Member] | ||
Vested and exercisable (in dollars per share) | 15.84 | |
Granted (in dollars per share) | $ 15.84 | |
Award Forfeited [Member] | ||
Vested and exercisable (in shares) | 3 | |
Vested and exercisable (in dollars per share) | $ 15.18 | |
Vested and exercisable (in dollars per share) | 2.94 | |
Granted (in dollars per share) | $ 15.18 | |
Exercised (in shares) | (3) | |
Forfeited | $ 33 | |
Award Vested [Member] | Minimum [Member] | ||
Vested and exercisable (in dollars per share) | $ 15.24 | |
Granted (in dollars per share) | 15.24 | |
Award Vested [Member] | Maximum [Member] | ||
Vested and exercisable (in dollars per share) | 24.56 | |
Granted (in dollars per share) | $ 24.56 | |
Award Vested [Member] | ||
Vested and exercisable (in shares) | 92 | |
Vested and exercisable (in dollars per share) | $ 17.46 | |
Vested and exercisable (in dollars per share) | 3.14 | |
Granted (in dollars per share) | $ 17.46 | |
Exercised (in shares) | (92) | |
Vested year-to-date | $ 1,432 |
Note 14 - Stock-based Compens77
Note 14 - Stock-based Compensation - Restricted Stock (Details) - Restricted Stock [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Number of shares, unvested (in shares) | 155,858 | 171,139 |
Unvested, grant date weighted average cost (in dollars per share) | $ 18.98 | $ 16.63 |
Number of shares, awarded (in shares) | 51,122 | 52,898 |
Shares awarded, grant date weighted average cost (in dollars per share) | $ 25.78 | $ 22.99 |
Number of shares, restrictions lapsed and shares released (in shares) | (48,711) | (61,205) |
Restrictions lapsed and shares released, grant date weighted average cost (in dollars per share) | $ 17.94 | $ 15.89 |
Number of shares, forfeited (in shares) | (12,007) | (6,974) |
Shares forfeited, grant date weighted average cost (in dollars per share) | $ 20.69 | $ 18.97 |
Number of shares, unvested (in shares) | 146,262 | 155,858 |
Unvested, grant date weighted average cost (in dollars per share) | $ 21.55 | $ 18.98 |
Note 14 - Stock-based Compens78
Note 14 - Stock-based Compensation - Performance-based Restricted Stock Units (Details) - $ / shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Performance Shares [Member] | Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | 3 years |
Fair value (in dollars per share) | $ 22.61 | $ 20.02 | $ 17.61 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 27,663 | 36,337 | 50,024 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 388,339 |
Note 15 - Net Income Per Shar79
Note 15 - Net Income Per Share - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Parent Company [Member] | ||||
Net income | $ 10,467 | $ 9,284 | $ 30,411 | $ 27,541 |
Net income | $ 10,467 | $ 9,284 | $ 30,411 | $ 27,541 |
Basic (in shares) | 22,385 | 22,131 | 22,325 | 22,056 |
Dilutive securities (in shares) | 418 | 348 | 386 | 354 |
Average shares outstanding including dilutive securities (in shares) | 22,803 | 22,479 | 22,711 | 22,410 |
Basic (in dollars per share) | $ 0.47 | $ 0.42 | $ 1.36 | $ 1.25 |
Diluted (in dollars per share) | $ 0.46 | $ 0.41 | $ 1.34 | $ 1.23 |
Note 16 - Segments - Financial
Note 16 - Segments - Financial Information by Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Commercial Banking [Member] | |||||
Net interest income | $ 24,690 | $ 22,034 | $ 71,985 | $ 65,350 | |
Provision for loan losses | 1,250 | 2,500 | |||
Wealth management and trust services | |||||
All other non-interest income | 6,558 | 5,612 | 17,999 | 16,301 | |
Non-interest expense | 17,722 | 15,785 | 51,914 | 46,991 | |
Income before income taxes | 12,276 | 11,861 | 35,570 | 34,660 | |
Income tax expense | 3,142 | 3,720 | 9,064 | 10,749 | |
Net income | 9,134 | 8,141 | 26,506 | 23,911 | |
Investment Management and Trust [Member] | |||||
Net interest income | 70 | 47 | 194 | 146 | |
Provision for loan losses | |||||
Wealth management and trust services | 4,800 | 4,373 | 14,219 | 13,576 | |
All other non-interest income | |||||
Non-interest expense | 2,796 | 2,645 | 8,337 | 8,085 | |
Income before income taxes | 2,074 | 1,775 | 6,076 | 5,637 | |
Income tax expense | 741 | 632 | 2,171 | 2,007 | |
Net income | 1,333 | 1,143 | 3,905 | 3,630 | |
Net interest income | 24,760 | 22,081 | 72,179 | 65,496 | |
Provision for loan losses | 1,250 | 2,500 | $ 750 | ||
Wealth management and trust services | 4,800 | 4,373 | 14,219 | 13,576 | |
All other non-interest income | 6,558 | 5,612 | 17,999 | 16,301 | |
Non-interest expense | 20,518 | 18,430 | 60,251 | 55,076 | |
Income before income taxes | 14,350 | 13,636 | 41,646 | 40,297 | |
Income tax expense | 3,883 | 4,352 | 11,235 | 12,756 | |
Net income | $ 10,467 | $ 9,284 | $ 30,411 | $ 27,541 |
Note 17 - Income Taxes - Compon
Note 17 - Income Taxes - Components of Income Tax Expense (Benefit) from Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Current income tax expense | ||||
Federal | $ 4,363 | $ 4,057 | $ 10,958 | $ 11,017 |
State | 287 | 140 | 597 | 413 |
Total current income tax expense | 4,650 | 4,197 | 11,555 | 11,430 |
Deferred income tax expense (benefit) | ||||
Federal | (692) | 147 | (302) | 1,240 |
State | (75) | 8 | (18) | 86 |
Total deferred income tax expense (benefit) | (767) | 155 | (320) | 1,326 |
Change in valuation allowance | ||||
Total income tax expense | $ 3,883 | $ 4,352 | $ 11,235 | $ 12,756 |
Note 17 - Income Taxes - Differ
Note 17 - Income Taxes - Difference Between Statutory and Effective Tax Rates (Details) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
U.S. federal statutory tax rate | 35.00% | 35.00% |
Tax exempt interest income | (1.30%) | (1.40%) |
Tax credits | (9.40%) | (2.40%) |
Increase in cash surrender value of life insurance | (0.90%) | (0.60%) |
State income taxes, net of federal benefit | 0.90% | 0.80% |
Other, net | 2.70% | 0.30% |
Effective income tax rate | 27.00% | 31.70% |
Note 18 - Assets and Liabilit83
Note 18 - Assets and Liabilities Measured and Reported at Fair Value (Details Textual) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | Appraisal Discount Method [Member] | ||
Assets, Fair Value Disclosure | 2,299,000 | |
Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure | 543,053,000 | 566,337,000 |
Mortgage Servicing Rights [Member] | ||
Impaired Financing Receivable, Related Allowance | 0 | 0 |
Impaired Loans [Member] | Appraisal Discount Method [Member] | ||
Assets, Fair Value Disclosure | 2,300,000 | 2,100,000 |
Impaired Financing Receivable, Related Allowance | 1,782,000 | 544,000 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 4,081,000 | 2,602,000 |
Other Real Estate, Foreclosed Assets, and Repossessed Assets | $ 5,000,000 | $ 4,500,000 |
Note 18 - Assets and Liabilit84
Note 18 - Assets and Liabilities Measured and Reported at Fair Value - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair value | ||
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value | 320,729,000 | 251,893,000 |
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair value | ||
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair value | 320,729,000 | 251,893,000 |
US Government-sponsored Enterprises Debt Securities [Member] | ||
Fair value | 320,729,000 | 251,893,000 |
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair value | 80,000,000 | |
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value | ||
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair value | ||
US Treasury and Government [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair value | 80,000,000 | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair value | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value | 161,077,000 | 169,628,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair value | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair value | 161,077,000 | 169,628,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Fair value | 161,077,000 | 169,628,000 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair value | ||
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value | 59,167,000 | 63,702,000 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair value | ||
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair value | 59,167,000 | 63,702,000 |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair value | 59,167,000 | 63,702,000 |
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair value | 708,000 | 653,000 |
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value | ||
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair value | ||
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair value | 708,000 | 653,000 |
Common Stock [Member] | ||
Fair value | 708,000 | 653,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair value | 708,000 | 80,653,000 |
Interest rate swaps | ||
Total assets | 708,000 | 80,653,000 |
Interest rate swaps | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair value | 540,973,000 | 485,223,000 |
Interest rate swaps | 1,372,000 | 461,000 |
Total assets | 542,345,000 | 485,684,000 |
Interest rate swaps | 1,928,000 | 554,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair value | ||
Interest rate swaps | ||
Total assets | 0 | 0 |
Interest rate swaps | ||
Fair Value, Measurements, Recurring [Member] | ||
Fair value | 541,681,000 | 565,876,000 |
Interest rate swaps | 1,372,000 | 461,000 |
Total assets | 543,053,000 | 566,337,000 |
Interest rate swaps | 1,928,000 | 554,000 |
Fair value | $ 541,681,000 | $ 565,876,000 |
Note 18 - Assets and Liabilit85
Note 18 - Assets and Liabilities Measured and Reported at Fair Value - Assets Measured at Fair Value on a Non-recurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 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 | 2,299 | 2,058 | |
Other real estate owned | 4,301 | 3,782 | |
Total | 6,600 | 5,840 | |
Fair Value, Measurements, Nonrecurring [Member] | |||
Impaired loans | 2,299 | 2,058 | |
Impaired loans | (1,612) | $ (1,147) | |
Other real estate owned | 4,301 | 3,782 | |
Other real estate owned | (62) | ||
Total | 6,600 | $ 5,840 | |
Total | (1,674) | (1,147) | |
Other real estate owned | $ 382 | $ (153) |
Note 18 - Assets and Liabilit86
Note 18 - Assets and Liabilities Measured and Reported at Fair Value - Significant Unobservable Inputs (Details) - Appraisal Discount Method [Member] - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Weighted average of input | 12.30% | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure | $ 2,299,000 | |
Impaired Loans [Member] | ||
Assets, Fair Value Disclosure | $ 2,300,000 | $ 2,100,000 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | ||
Weighted average of input | 19.20% | |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure | $ 4,301,000 |
Note 19 - Disclosure of Finan87
Note 19 - 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 | Sep. 30, 2016 | Dec. 31, 2015 |
Reported Value Measurement [Member] | ||
Financial assets | ||
Cash and short-term investments | $ 57,893 | $ 103,833 |
Mortgage loans held for sale | 5,959 | 6,800 |
Federal Home Loan Bank stock and other securities | 6,347 | 6,347 |
Loans, net | 2,198,337 | 2,010,566 |
Accrued interest receivable | 6,952 | 6,610 |
Financial liabilities | ||
Deposits | 2,390,597 | 2,371,702 |
Short-term borrowings | 143,702 | 87,003 |
FHLB advances | 51,366 | 43,468 |
Accrued interest payable | 116 | 127 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial assets | ||
Cash and short-term investments | 57,893 | 103,833 |
Mortgage loans held for sale | ||
Federal Home Loan Bank stock and other securities | ||
Loans, net | ||
Accrued interest receivable | 6,952 | 6,610 |
Financial liabilities | ||
Deposits | ||
Short-term borrowings | ||
FHLB advances | ||
Accrued interest payable | 116 | 127 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial assets | ||
Cash and short-term investments | ||
Mortgage loans held for sale | 6,206 | 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 | 143,702 | 87,003 |
FHLB advances | 53,091 | 43,647 |
Accrued interest payable | ||
Estimate of Fair Value Measurement [Member] | 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 | 2,232,177 | 2,021,776 |
Accrued interest receivable | ||
Financial liabilities | ||
Deposits | 2,390,642 | 2,371,300 |
Short-term borrowings | ||
FHLB advances | ||
Accrued interest payable | ||
Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Cash and short-term investments | 57,893 | 103,833 |
Mortgage loans held for sale | 6,206 | 7,112 |
Federal Home Loan Bank stock and other securities | 6,347 | 6,347 |
Loans, net | 2,232,177 | 2,021,776 |
Accrued interest receivable | 6,952 | 6,610 |
Financial liabilities | ||
Deposits | 2,390,642 | 2,371,300 |
Short-term borrowings | 143,702 | 87,003 |
FHLB advances | 53,091 | 43,647 |
Accrued interest payable | 116 | 127 |
Cash and short-term investments | 57,893 | 103,833 |
Accrued interest receivable | 6,952 | 6,610 |
Accrued interest payable | $ 116 | $ 127 |
Note 20 - Regulatory Matters -
Note 20 - Regulatory Matters - Risk Based Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Subsidiaries [Member] | |||
Total risk-based capital, actual amount | [1] | $ 319,526 | $ 298,129 |
Total risk-based capital, actual ratio | [1] | 12.64% | 12.91% |
Total risk-based capital, minimum for adequately capitalized amount | [1] | $ 202,232 | $ 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] | $ 252,790 | $ 230,929 |
Total risk-based capital, minimum for well capitalized ratio | [1] | 10.00% | 10.00% |
Common Equity Tier 1 risk-based capital, actual amount | $ 294,815 | $ 275,256 | |
Common Equity Tier 1 risk-based capital, actual ratio | 11.66% | 11.92% | |
Common Equity Tier 1 risk-based capital, minimum for adequately capitalized amount | $ 113,779 | $ 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 | $ 151,706 | $ 138,552 | |
Common Equity Tier 1 risk-based capital, minimum for well capitalized ratio | 6.00% | 6.00% | |
Tier 1 risk-based capital, actual amount | [1] | $ 294,815 | $ 275,256 |
Tier 1 risk-based capital, actual ratio | [1] | 11.66% | 11.92% |
Tier 1 risk-based capital, minimum for adequately capitalized amount | [1] | $ 151,706 | $ 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] | $ 151,706 | $ 138,552 |
Tier 1 risk-based capital, minimum for well capitalized ratio | [1] | 6.00% | 6.00% |
Leverage, actual amount | [2] | $ 294,815 | $ 275,256 |
Leverage, actual ratio | [2] | 10.26% | 10.19% |
Leverage, minimum for adequately capitalized amount | [2] | $ 114,938 | $ 108,049 |
Leverage, minimum for adequately capitalized ratio | [2] | 4.00% | 4.00% |
Leverage, minimum for well capitalized amount | [2] | $ 143,672 | $ 135,062 |
Leverage, minimum for well capitalized ratio | [2] | 5.00% | 5.00% |
Total risk-based capital, actual amount | [1] | $ 330,597 | $ 307,666 |
Total risk-based capital, actual ratio | [1] | 13.05% | 13.31% |
Total risk-based capital, minimum for adequately capitalized amount | [1] | $ 202,665 | $ 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 | $ 305,886 | $ 284,793 | |
Common Equity Tier 1 risk-based capital, actual ratio | 12.07% | 12.32% | |
Common Equity Tier 1 risk-based capital, minimum for adequately capitalized amount | $ 114,042 | $ 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] | $ 305,886 | $ 284,793 |
Tier 1 risk-based capital, actual ratio | [1] | 12.07% | 12.32% |
Tier 1 risk-based capital, minimum for adequately capitalized amount | [1] | $ 152,056 | $ 138,698 |
Tier 1 risk-based capital, minimum for adequately capitalized ratio | [1] | 6.00% | 6.00% |
Leverage, actual amount | [2] | $ 305,886 | $ 284,793 |
Leverage, actual ratio | [2] | 10.63% | 10.53% |
Leverage, minimum for adequately capitalized amount | [2] | $ 115,103 | $ 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 21 - Subsequent Event (Det
Note 21 - Subsequent Event (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2008 | Dec. 31, 2004 | Apr. 30, 2016 | |
IBB [Member] | Other Income [Member] | Scenario, Forecast [Member] | ||||
Gain from (Recovery on) Sale of Investment, Before Tax | $ 588 | |||
IBB [Member] | ||||
Payments to Acquire Interest in Subsidiaries and Affiliates | $ 1,400 | |||
Other than Temporary Impairment Losses, Investments | $ 866 | |||
IBB [Member] | Lizton [Member] | ||||
Business Acquisition, Share Price | $ 7.25 |