Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 10, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | Middlefield Banc Corp. | |
Entity Central Index Key | 836,147 | |
Trading Symbol | mbcn | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 2,250,707 | |
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 Sheet (Cur
Consolidated Balance Sheet (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 21,976 | $ 22,421 |
Federal funds sold | 1,300 | 1,329 |
Cash and cash equivalents | 23,276 | 23,750 |
Investment securities available for sale, at fair value | 123,054 | 146,520 |
Loans held for sale | 880 | 1,107 |
Loans | 586,329 | 533,710 |
Less allowance for loan and lease losses | 6,334 | 6,385 |
Net loans | 579,995 | 527,325 |
Premises and equipment, net | 9,921 | 9,772 |
Goodwill | 4,559 | 4,559 |
Core deposit intangibles | 46 | 76 |
Bank-owned life insurance | 13,438 | 13,141 |
Other real estate owned | 1,205 | 1,412 |
Accrued interest and other assets | 5,884 | 7,477 |
TOTAL ASSETS | 762,258 | 735,139 |
LIABILITIES | ||
Noninterest-bearing demand | 136,320 | 116,498 |
Interest-bearing demand | 67,061 | 57,219 |
Money market | 77,774 | 78,856 |
Savings | 173,272 | 180,653 |
Time | 184,915 | 191,221 |
Total deposits | 639,342 | 624,447 |
Short-term borrowings | 32,803 | 35,825 |
Other borrowings | 9,713 | 9,939 |
Accrued interest and other liabilities | 2,208 | 2,624 |
TOTAL LIABILITIES | 684,066 | 672,835 |
STOCKHOLDERS' EQUITY | ||
Common stock, no par value; 10,000,000 shares authorized, 2,636,830 and 2,263,403 shares issued; 2,250,665 and 1,877,238 shares outstanding | 47,812 | 36,191 |
Retained earnings | 40,282 | 37,236 |
Accumulated other comprehensive income | 3,616 | 2,395 |
Treasury stock, at cost; 386,165 shares | (13,518) | (13,518) |
TOTAL STOCKHOLDERS' EQUITY | 78,192 | 62,304 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 762,258 | $ 735,139 |
Consolidated Balance Sheet (Cu3
Consolidated Balance Sheet (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 2,636,830 | 2,263,403 |
Common stock, shares outstanding (in shares) | 2,250,665 | 1,877,238 |
Treasury stock, shares (in shares) | 386,165 | 386,165 |
Consolidated Statement of Incom
Consolidated Statement of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Core Deposits [Member] | ||||
NONINTEREST EXPENSE | ||||
Core deposit intangible amortization | $ 10 | $ 10 | $ 30 | $ 30 |
Interest and fees on loans | 6,459 | 5,971 | 18,949 | 17,656 |
Interest-bearing deposits in other institutions | 15 | 6 | 42 | 26 |
Federal funds sold | 7 | 4 | 16 | 12 |
Taxable interest | 235 | 341 | 865 | 1,115 |
Tax-exempt interest | 687 | 809 | 2,227 | 2,373 |
Dividends on stock | 17 | 20 | 74 | 70 |
Total interest and dividend income | 7,420 | 7,151 | 22,173 | 21,252 |
Deposits | 921 | 876 | 2,665 | 2,581 |
Short-term borrowings | 49 | 30 | 288 | 100 |
Other borrowings | 14 | 20 | 47 | 66 |
Trust preferred securities | 42 | 33 | 117 | 85 |
Total interest expense | 1,026 | 959 | 3,117 | 2,832 |
NET INTEREST INCOME | 6,394 | 6,192 | 19,056 | 18,420 |
Provision for loan losses | 105 | 105 | 315 | 210 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 6,289 | 6,087 | 18,741 | 18,210 |
Service charges on deposit accounts | 505 | 471 | 1,443 | 1,382 |
Investment securities gains, net | 211 | 303 | 257 | |
Earnings on bank-owned life insurance | 101 | 101 | 297 | 262 |
Gain on sale of loans | 129 | 113 | 322 | 286 |
Other income | 242 | 212 | 694 | 679 |
Total noninterest income | 977 | 1,108 | 3,059 | 2,866 |
Salaries and employee benefits | 2,677 | 2,285 | 7,740 | 7,205 |
Occupancy expense | 306 | 305 | 933 | 945 |
Equipment expense | 221 | 249 | 700 | 706 |
Data processing costs | 334 | 287 | 928 | 798 |
Ohio state franchise tax | 186 | 75 | 448 | 225 |
Federal deposit insurance expense | 132 | 120 | 396 | 352 |
Professional fees | 547 | 229 | 1,057 | 825 |
Loss (gain) on other real estate owned | (49) | 24 | (52) | 72 |
Advertising expense | 206 | 195 | 604 | 586 |
Other real estate expense | 97 | 116 | 299 | 449 |
Directors fees | 102 | 98 | 330 | 343 |
Appraiser fees | 114 | 97 | 334 | 327 |
ATM fees | 102 | 89 | 296 | 295 |
Other expense | 677 | 490 | 1,872 | 1,539 |
Total noninterest expense | 5,662 | 4,669 | 15,915 | 14,697 |
Income before income taxes | 1,604 | 2,526 | 5,885 | 6,379 |
Income taxes | 261 | 544 | 1,129 | 1,264 |
NET INCOME | $ 1,343 | $ 1,982 | $ 4,756 | $ 5,115 |
EARNINGS PER SHARE | ||||
Basic (in dollars per share) | $ 0.60 | $ 0.96 | $ 2.31 | $ 2.49 |
Diluted (in dollars per share) | 0.60 | 0.96 | 2.30 | 2.47 |
Cash dividends (in dollars per share) | $ 0.27 | $ 0.27 | $ 0.81 | $ 0.80 |
Consolidated Statement of Compr
Consolidated Statement 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 | $ (1,343) | $ (1,982) | $ (4,756) | $ (5,115) |
Other comprehensive income (loss): | ||||
Net unrealized holding gain (loss) on available-for-sale securities | (400) | 1,416 | 2,153 | (699) |
Tax effect | 137 | (481) | (732) | 238 |
Reclassification adjustment for investment securities gains included in net income | (211) | (303) | (257) | |
Tax effect | 71 | 102 | 87 | |
Period change | (263) | 795 | 1,221 | (631) |
Comprehensive income | $ 1,080 | $ 2,777 | $ 5,977 | $ 4,484 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2015 | $ 36,191 | $ 37,236 | $ 2,395 | $ (13,518) | $ 62,304 |
Net income | 4,756 | 4,756 | |||
Other comprehensive income | 1,221 | 1,221 | |||
Common stock issuance, net of offering cost (360,815 shares) | 11,239 | 11,239 | |||
Dividend reinvestment and purchase plan (11,712 shares) | 382 | 382 | |||
Cash dividends ($0.81 per share) | (1,710) | (1,710) | |||
Balance at Sep. 30, 2016 | $ 47,812 | $ 40,282 | $ 3,616 | $ (13,518) | $ 78,192 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parentheticals) | 9 Months Ended |
Sep. 30, 2016$ / shares | |
Retained Earnings [Member] | |
Cash dividends (in dollars per share) | $ 0.81 |
Cash dividends (in dollars per share) | $ 0.81 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
OPERATING ACTIVITIES | ||
Net income | $ 4,756 | $ 5,115 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 315 | 210 |
Investment securities gain, net | (303) | (257) |
Depreciation and amortization | 774 | 763 |
Amortization of premium and discount on investment securities | 352 | 553 |
Accretion of deferred loan fees, net | (150) | (468) |
Origination of loans held for sale | (15,497) | (14,740) |
Proceeds from sale of loans | 16,046 | 14,844 |
Gain on sale of loans | (322) | (286) |
Earnings on bank-owned life insurance | (297) | (262) |
Deferred income tax | 224 | 397 |
Loss (gain) on other real estate owned | (52) | 72 |
Other real estate owned writedowns | 73 | 56 |
Increase in accrued interest receivable | (139) | (481) |
(Decrease) increase in accrued interest payable | (4) | 58 |
Other, net | 253 | (158) |
Net cash provided by operating activities | 6,029 | 5,416 |
INVESTING ACTIVITIES | ||
Proceeds from repayments and maturities | 17,896 | 7,530 |
Proceeds from sale of securities | 9,115 | 15,284 |
Purchases | (1,744) | (14,876) |
Increase in loans, net | (53,430) | (40,554) |
Proceeds from the sale of other real estate owned | 781 | 1,094 |
Purchase of bank-owned life insurance | (4,000) | |
Purchase of premises and equipment | (679) | (454) |
Net cash used for investing activities | (28,061) | (35,976) |
FINANCING ACTIVITIES | ||
Net increase in deposits | 14,895 | 40,436 |
Decrease in short-term borrowings, net | (3,022) | (10,761) |
Repayment of other borrowings | (226) | (324) |
Common stock issued | 11,239 | |
Stock options exercised | 6 | |
Proceeds from dividend reinvestment and purchase plan | 382 | 504 |
Cash dividends | (1,710) | (1,645) |
Net cash provided by financing activities | 21,558 | 28,216 |
Decrease in cash and cash equivalents | (474) | (2,344) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 23,750 | 25,639 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 23,276 | 23,295 |
SUPPLEMENTAL INFORMATION | ||
Interest on deposits and borrowings | 3,121 | 2,774 |
Income taxes | 475 | 350 |
Noncash investing transactions: | ||
Transfers from loans to other real estate owned | $ 595 | $ 638 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 1 - BASIS OF PRESENTATION The consolidated financial statements of Middlefield Banc Corp. ("Company") include its bank subsidiary, The Middlefield Banking Company (“MB”), and a nonbank asset resolution subsidiary EMORECO, Inc. All significant inter-company items have been eliminated. The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles and the instructions for Form 10-Q and Article 10 of Regulation S-X. In management’s opinion, the financial statements include all adjustments, consisting of normal recurring adjustments, that the Company considers necessary to fairly state the Company’s financial position and the results of operations and cash flows. The consolidated balance sheet at December 31, 2015, has been derived from the audited financial statements at that date but does not include all of the necessary informational disclosures and footnotes as required by U.S. generally accepted accounting principles. The accompanying financial statements should be read in conjunction with the financial statements and notes thereto included with the Company’s Form 10-K for the year ended December 31, 2015. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. Recent Accounting Pronouncements – In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation ( Topic 718 ): Accounting for Share-Based Payments when the Terms of an Award Provide that a Performance Target Could Be Achieved After the Requisite Service Period In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers Topic 606 In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishments of Liabilities (Subtopic 405-20). In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815) . In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815) In March 2016, the FASB issued ASU 2016-07, Investments – Equity Method and Joint Ventures (Topic 323) In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) Share-Based Payment In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivative and Hedging (Topic 815), which rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016, Emerging Issues Task Force meeting. This Update did not have a significant impact on the Company’s financial statements. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606), which among other things clarifies the objective of the collectability criterion in Topic 606, as well as certain narrow aspects of Topic 606. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. This Update is not expected to have a significant impact on the Company’s financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which addresses eight specific cash flow issues with the objective of reducing diversity in practice. Among these include recognizing cash payments for debt prepayment or debt extinguishment as cash outflows for financing activities; cash proceeds received from the settlement of insurance claims should be classified on the basis of the related insurance coverage; and cash proceeds received from the settlement of bank-owned life insurance policies should be classified as cash inflows from investing activities while the cash payments for premiums on bank-owned policies may be classified as cash outflows for investing activities, operating activities, or a combination of investing and operating activities. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s statement of cash flows. |
Note 2 - Stock-based Compensati
Note 2 - Stock-based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 2 - STOCK-BASED COMPENSATION The Company had no unvested stock options outstanding or unrecognized stock-based compensation costs outstanding as of September 30, 2016 and 2015. Stock option activity during the nine months ended September 30 is as follows: Weighted- Weighted- average average Exercise Exercise 2016 Price 2015 Price Outstanding, January 1 31,949 $ 25.03 46,451 $ 27.90 Expired - - (3,639 ) 37.33 Exercised - - (1,025 ) 20.21 Outstanding, September 30 31,949 $ 25.03 41,787 $ 27.27 Exercisable, September 30 31,949 $ 25.03 41,787 $ 27.27 |
Note 3 - Earnings Per Share
Note 3 - Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 3 - EARNINGS PER SHARE The Company provides dual presentation of basic and diluted earnings per share. Basic earnings per share is calculated by dividing net income by the average shares outstanding. Diluted earnings per share adds the dilutive effects of stock options to average shares outstanding. The following table sets forth the composition of the weighted-average common shares (denominator) used in the basic and diluted earnings per share computation. For the Three For the Nine Months Ended Months Ended September 30, September 30, 2016 2015 2016 2015 Weighted-average common shares outstanding 2,633,752 2,253,584 2,445,821 2,248,468 Average treasury stock shares (386,165 ) (189,530 ) (386,165 ) (189,530 ) Weighted-average common shares and common stock equivalents used to calculate basic earnings per share 2,247,587 2,064,054 2,059,656 2,058,938 Additional common stock equivalents (stock options) used to calculate diluted earnings per share 8,643 8,585 8,876 9,254 Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 2,256,230 2,072,639 2,068,532 2,068,192 Options to purchase 31,949 shares of common stock, at prices ranging from $17.55 to $40.24, were outstanding during the three and nine months ended September 30, 2016. Of those options, 24,700 were considered dilutive for the three and nine month periods based on the market price exceeding the strike price. Options to purchase 41,787 shares of common stock, at prices ranging from $17.55 to $37.48, were outstanding during the three and nine months ended September 30, 2015. Of those options, 27,000 were considered dilutive for the three month period based on the market price exceeding the strike price. For the nine months ended September 30, 2015, 27,250 options were considered dilutive. |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE 4 - FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following levels: Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The following tables present the assets measured on a recurring basis on the Consolidated Balance Sheet at their fair value by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. September 30, 2016 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a recurring basis: U.S. government agency securities $ - $ 10,863 $ - $ 10,863 Obligations of states and political subdivisions - 87,525 - 87,525 Mortgage-backed securities in government- sponsored entities - 21,380 - 21,380 Private-label mortgage-backed securities - 2,068 - 2,068 Total debt securities - 121,836 - 121,836 Equity securities in financial institutions 5 1,213 - 1,218 Total $ 5 $ 123,049 $ - $ 123,054 December 31, 2015 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a recurring basis: U.S. government agency securities $ - $ 21,629 $ - $ 21,629 Obligations of states and political subdivisions - 97,290 - 97,290 Mortgage-backed securities in government- sponsored entities - 24,524 - 24,524 Private-label mortgage-backed securities - 2,263 - 2,263 Total debt securities - 145,706 - 145,706 Equity securities in financial institutions 5 809 - 814 Total $ 5 $ 146,515 $ - $ 146,520 The Company obtains fair values from an independent pricing service which represent either quoted market prices for the identical securities (Level I inputs) or fair values determined by pricing models using a market approach that considers observable market data, such as interest rate volatilities, LIBOR yield curve, credit spreads and prices from market makers and live trading systems (Level II). Financial instruments are considered Level III when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. In addition to these unobservable inputs, the valuation models for Level III financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. Level III financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. The Company has no securities considered to be Level III as of September 30, 2016 or December 31, 2015. The Company uses prices compiled by third party vendors. The following tables present the assets measured on a nonrecurring basis on the Consolidated Balance Sheet at their fair value by level within the fair value hierarchy. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves. Techniques used to value the collateral that secure the impaired loan include quoted market prices for identical assets classified as Level I inputs and observable inputs, employed by certified appraisers, for similar assets classified as Level II inputs. In cases where valuation techniques included inputs that are unobservable and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level III inputs. The Company values other real estate owned at the estimated fair value of the underlying collateral less expected selling costs. Such values are estimated primarily using appraisals and reflect a market value approach. Due to the significance of the Level III inputs, other real estate owned has been classified as Level III. September 30, 2016 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a nonrecurring basis: Impaired loans $ - $ - $ 11,102 $ 11,102 Other real estate owned - - 1,205 1,205 December 31, 2015 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a nonrecurring basis: Impaired loans $ - $ - $ 12,848 $ 12,848 Other real estate owned - - 1,412 1,412 The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company uses Level III inputs to determine fair value: Quantitative Information about Level III Fair Value Measurements (Dollar amounts in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) September 30, 2016 Impaired loans $ 7,743 Discounted cash flow Discount rate 3.1% to 7.0% (5.0%) 3,359 Appraisal of collateral (1) Appraisal adjustments (2) 0.0% to 55.7% (34.6%) Other real estate owned $ 1,205 Appraisal of collateral (1) Appraisal adjustments (2) 0.0% to 10.0% (7.3%) Quantitative Information about Level III Fair Value Measurements (Dollar amounts in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2015 Impaired loans $ 6,867 Discounted cash flow Discount rate 3.1% to 7.9% (5.0%) 5,981 Appraisal of collateral (1) Appraisal adjustments (2) 0.0% to 87.1% (23.3%) Other real estate owned $ 1,412 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 10.0% (7.3%) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The estimated fair value of the Company’s financial instruments is as follows: September 30, 2016 Carrying Total Value Level I Level II Level III Fair Value (Dollar amounts in thousands) Financial assets: Cash and cash equivalents $ 23,276 $ 23,276 $ - $ - $ 23,276 Investment securities Available for sale 123,054 5 123,049 - 123,054 Loans held for sale 880 - 880 - 880 Net loans 579,995 - - 586,739 586,739 Bank-owned life insurance 13,438 13,438 - - 13,438 Federal Home Loan Bank stock 1,887 1,887 - - 1,887 Accrued interest receivable 2,526 2,526 - - 2,526 Financial liabilities: Deposits $ 639,342 $ 454,427 $ - $ 188,668 $ 643,095 Short-term borrowings 32,803 32,803 - - 32,803 Other borrowings 9,713 - - 10,003 10,003 Accrued interest payable 391 391 - - 391 December 31, 2015 Carrying Total Value Level I Level II Level III Fair Value (Dollar amounts in thousands) Financial assets: Cash and cash equivalents $ 23,750 $ 23,750 $ - $ - $ 23,750 Investment securities Available for sale 146,520 5 146,515 - 146,520 Loans held for sale 1,107 - 1,107 - 1,107 Net loans 527,325 - - 534,021 534,021 Bank-owned life insurance 13,141 13,141 - - 13,141 Federal Home Loan Bank stock 1,887 1,887 - - 1,887 Accrued interest receivable 2,387 2,387 - - 2,387 Financial liabilities: Deposits $ 624,447 $ 433,226 $ - $ 191,747 $ 624,973 Short-term borrowings 35,825 35,825 - - 35,825 Other borrowings 9,939 - 10,063 10,063 Accrued interest payable 395 395 - - 395 Financial instruments are defined as cash, evidence of ownership interest in an entity, or a contract which creates an obligation or right to receive or deliver cash or another financial instrument from/to a second entity on potentially favorable or unfavorable terms. Fair value is defined as the amount at which a financial instrument could be exchanged in a current transaction between willing parties other than in a forced liquidation sale. If a quoted market price is available for a financial instrument, the estimated fair value would be calculated based upon the market price per trading unit of the instrument. If no readily available market exists, the fair value estimates for financial instruments should be based upon management’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses, and other factors as determined through various option pricing formulas or simulation modeling. Since many of these assumptions result from judgments made by management based upon estimates which are inherently uncertain, the resulting estimated fair values may not be indicative of the amount realizable in the sale of a particular financial instrument. In addition, changes in assumptions on which the estimated fair values are based may have a significant impact on the resulting estimated fair values. As certain assets such as deferred tax assets and premises and equipment are not considered financial instruments, the estimated fair value of financial instruments would not represent the full value of the Company. The Company employed simulation modeling in determining the estimated fair value of financial instruments for which quoted market prices were not available based upon the following assumptions: Cash and Cash Equivalents, Federal Home Loan Bank Stock, Accrued Interest Receivable, Accrued Interest Payable, and Short-Term Borrowings The fair value is equal to the current carrying value. Bank-Owned Life Insurance The fair value is equal to the cash surrender value of the life insurance policies. Investment Securities Available for Sale The fair value of investment securities is equal to the available quoted market price. If no quoted market price is available, fair value is estimated using the quoted market price for similar securities. Loans Held for Sale Loans held for sale are carried at lower of cost or fair value. The fair value of loans held for sale is based on secondary market pricing on portfolios with similar characteristics. The changes in fair value of the assets are largely driven by changes in interest rates subsequent to loan funding and changes in the fair value of servicing associated with the mortgage loan held for sale. Net Loans The fair value is estimated by discounting future cash flows using current market inputs at which loans with similar terms and qualities would be made to borrowers of similar credit quality. Where quoted market prices were available, primarily for certain residential mortgage loans, such market rates were used as estimates for fair value. Deposits and Other Borrowings The fair values of certificates of deposit and other borrowings are based on the discounted value of contractual cash flows. The discount rates are estimated using rates currently offered for similar instruments with similar remaining maturities. Demand, savings, and money market deposits are valued at the amount payable on demand as of period end. Commitments to Extend Credit These financial instruments are generally not subject to sale, and estimated fair values are not readily available. The carrying value, represented by the net deferred fee arising from the unrecognized commitment or letter of credit, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, are not considered material for disclosure. |
Note 5 - Accumulated Other Comp
Note 5 - Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 5 – ACCUMULATED OTHER COMPREHENSIVE INCOME The following tables present the changes in accumulated other comprehensive income by component net of tax for the three and nine months ended September 30, 2016 and 2015, respectively: Unrealized gains on available-for-sale (Dollars in thousands) securities Balance as of December 31, 2015 $ 2,395 Other comprehensive income before reclassification 1,421 Amount reclassified from accumulated other comprehensive income (200 ) Period change 1,221 Balance at September 30, 2016 $ 3,616 Balance as of June 30, 2016 $ 3,879 Other comprehensive income before reclassification (263 ) Amount reclassified from accumulated other comprehensive income - Period change (263 ) Balance at September 30, 2016 $ 3,616 Unrealized gains on available-for-sale (Dollars in thousands) securities Balance as of December 31, 2014 $ 2,548 Other comprehensive income before reclassification (461 ) Amount reclassified from accumulated other comprehensive income (170 ) Period change (631 ) Balance at September 30, 2015 1,917 Balance as of June 30, 2015 $ 1,122 Other comprehensive loss before reclassification 935 Amount reclassified from accumulated other comprehensive income (140 ) Period change 795 Balance at September 30, 2015 $ 1,917 The following tables present significant amounts reclassified out of each component of accumulated other comprehensive income for the three and nine months ended September 30, 2016 and 2015, respectively: Amount Reclassified from Accumulated Other Comprehensive Affected Line Item in Income (a) the Statement Where (Dollars in thousands) For the Three Months Ended Net Income is Details about other comprehensive income September 30, 2016 September 30, 2015 Presented Unrealized gains on available-for-sale securities $ - $ 211 Investment securities gains, net - (71 ) Income taxes $ - $ 140 Net of tax Amount Reclassified from Accumulated Other Comprehensive Affected Line Item in Income (a) the Statement Where (Dollars in thousands) For the Nine Months Ended Net Income is Details about other comprehensive income September 30, 2016 September 30, 2015 Presented Unrealized gains on available-for-sale securities $ 303 $ 257 Investment securities gains, net (103 ) (87 ) Income taxes $ 200 $ 170 Net of tax (a) Amounts in parentheses indicate debits to net income |
Note 6 - Investment Securities
Note 6 - Investment Securities Available for Sale | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 6 - INVESTMENT SECURITIES AVAILABLE FOR SALE The amortized cost and fair values of securities available for sale are as follows: September 30, 2016 Gross Gross Amortized Unrealized Unrealized Fair (Dollar amounts in thousands) Cost Gains Losses Value U.S. government agency securities $ 10,516 $ 359 $ (12 ) $ 10,863 Obligations of states and political subdivisions: Taxable 1,616 186 - 1,802 Tax-exempt 81,829 3,899 (5 ) 85,723 Mortgage-backed securities in government-sponsored entities 20,939 485 (44 ) 21,380 Private-label mortgage-backed securities 1,927 141 - 2,068 Total debt securities 116,827 5,070 (61 ) 121,836 Equity securities in financial institutions 750 468 - 1,218 Total $ 117,577 $ 5,538 $ (61 ) $ 123,054 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. government agency securities $ 21,655 $ 245 $ (271 ) $ 21,629 Obligations of states and political subdivisions: Taxable 1,989 134 - 2,123 Tax-exempt 91,940 3,402 (175 ) 95,167 Mortgage-backed securities in government-sponsored entities 24,480 316 (272 ) 24,524 Private-label mortgage-backed securities 2,079 184 - 2,263 Total debt securities 142,143 4,281 (718 ) 145,706 Equity securities in financial institutions 750 64 - 814 Total $ 142,893 $ 4,345 $ (718 ) $ 146,520 The amortized cost and fair value of debt securities at September 30, 2016, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair (Dollar amounts in thousands) Cost Value Due in one year or less $ 2,842 $ 2,879 Due after one year through five years 9,132 9,500 Due after five years through ten years 12,916 13,510 Due after ten years 91,937 95,947 Total $ 116,827 $ 121,836 Proceeds from the sales of securities available for sale and the gross realized gains and losses for the three and nine months ended September 30 are as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Proceeds from sales $ - $ 11,973 $ 9,115 $ 15,284 Gross realized gains - 233 306 373 Gross realized losses - (22 ) (3 ) (116 ) Investment securities with an approximate carrying value of $64.7 million and $68.8 million at September 30, 2016 and December 31, 2015, respectively, were pledged to secure deposits and other purposes as required by law. The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. September 30, 2016 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (Dollar amounts in thousands) Value Losses Value Losses Value Losses U.S. government agency securities $ 2,000 $ - $ 1,465 $ (12 ) $ 3,465 $ (12 ) Obligations of states and political subdivisions Tax-exempt 608 - - (5 ) 608 (5 ) Mortgage-backed securities in government-sponsored entities - - 4,709 (44 ) 4,709 (44 ) Private-label mortgage-backed securities 75 - - - 75 - Total $ 2,683 $ - $ 6,174 $ (61 ) $ 8,857 $ (61 ) December 31, 2015 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. government agency securities $ 3,818 $ (57 ) $ 10,872 $ (214 ) $ 14,690 $ (271 ) Obligations of states and political subdivisions Tax-exempt 1,268 (9 ) 9,394 (166 ) 10,662 (175 ) Mortgage-backed securities in government-sponsored entities 8,725 (86 ) 6,685 (186 ) 15,410 (272 ) Total $ 13,811 $ (152 ) $ 26,951 $ (566 ) $ 40,762 $ (718 ) There were 9 securities considered temporarily impaired at September 30, 2016. On a quarterly basis, the Company performs an assessment to determine whether there have been any events or economic circumstances indicating that a security with an unrealized loss has suffered other-than-temporary impairment (“OTTI”). A debt security is considered impaired if the fair value is less than its amortized cost basis at the reporting date. The Company assesses whether the unrealized loss is other than temporary. OTTI losses are recognized in earnings when the Company has the intent to sell the debt security or it is more likely than not that it will be required to sell the debt security before recovery of its amortized cost basis. However, even if the Company does not expect to sell a debt security, it must evaluate expected cash flows to be received and determine if a credit loss has occurred. An unrealized loss is generally deemed to be other than temporary and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. As a result the credit loss component of an OTTI is recorded as a component of investment securities gains (losses) in the accompanying Consolidated Statement of Income, while the remaining portion of the impairment loss is recognized in other comprehensive income, provided the Company does not intend to sell the underlying debt security and it is “more likely than not” that the Company will not have to sell the debt security prior to recovery. Debt securities issued by U.S. government agencies, U.S. government-sponsored enterprises, and state and political subdivisions accounted for more than 97% of the total available-for-sale portfolio as of September 30, 2016 and no credit losses are expected, given the explicit and implicit guarantees provided by the U.S. federal government and the lack of prolonged unrealized loss positions within the obligations of state and political subdivisions security portfolio. The Company considers the following factors in determining whether a credit loss exists and the period over which the debt security is expected to recover: • The length of time and the extent to which the fair value has been less than the amortized cost basis. • Changes in the near term prospects of the underlying collateral of a security such as changes in default rates, loss severity given default and significant changes in prepayment assumptions; • The level of cash flows generated from the underlying collateral supporting the principal and interest payments of the debt securities; and • Any adverse change to the credit conditions and liquidity of the issuer, taking into consideration the latest information available about the overall financial condition of the issuer, credit ratings, recent legislation and government actions affecting the issuer’s industry and actions taken by the issuer to deal with the present economic climate. For the nine months ended September 30, 2016 and 2015, there were no available-for-sale debt securities with an unrealized loss that suffered OTTI. Management does not believe any individual unrealized loss as of September 30, 2016 or December 31, 2015 represented an other-than-temporary impairment. The unrealized losses on debt securities are primarily the result of interest rate changes. These conditions will not prohibit the Company from receiving its contractual principal and interest payments on these debt securities. The fair value of these debt securities is expected to recover as payments are received on these securities and they approach maturity. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. |
Note 7 - Loans and Related Allo
Note 7 - Loans and Related Allowance for Loan and Lease Losses | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 7 - LOANS AND RELATED ALLOWANCE FOR LOAN AND LEASE LOSSES Major classifications of loans are summarized as follows (in thousands): September 30, December 31, 2016 2015 Commercial and industrial $ 59,376 $ 42,536 Real estate - construction 17,633 22,137 Real estate - mortgage: Residential 258,952 232,478 Commercial 245,636 231,701 Consumer installment 4,732 4,858 586,329 533,710 Less: Allowance for loan and lease losses 6,334 6,385 Net loans $ 579,995 $ 527,325 The Company’s primary business activity is with customers located within its local Northeastern Ohio trade area, eastern Geauga County, and contiguous counties to the north, east, and south. The Company also serves the central Ohio market with offices in Dublin, Sunbury and Westerville, Ohio. Commercial, residential, consumer, and agricultural loans are granted. Although the Company has a diversified loan portfolio, loans outstanding to individuals and businesses are dependent upon the local economic conditions in the Company’s immediate trade area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances net of the allowance for loan and lease losses. Interest income is recognized as income when earned on the accrual method. The accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions, the borrower’s financial condition is such that collection of interest is doubtful. Interest received on nonaccrual loans is recorded as income or applied against principal according to management’s judgment as to the collectability of such principal. Loan origination fees and certain direct loan origination costs are being deferred and the net amount amortized as an adjustment of the related loan’s yield. Management is amortizing these amounts over the contractual life of the related loans. The following tables summarize the primary segments of the loan portfolio and allowance for loan and lease losses (in thousands): Real Estate- Mortgage September 30, 2016 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Loans: Individually evaluated for impairment $ 844 $ 1,093 $ 3,238 $ 6,466 $ 5 $ 11,646 Collectively evaluated for impairment 58,532 16,540 255,714 239,170 4,727 574,683 Total loans $ 59,376 $ 17,633 $ 258,952 $ 245,636 $ 4,732 $ 586,329 Real estate- Mortgage December 31, 2015 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Loans: Individually evaluated for impairment $ 1,808 $ 1,787 $ 3,881 $ 6,199 $ 6 $ 13,681 Collectively evaluated for impairment 40,728 20,350 228,597 225,502 4,852 520,029 Total loans $ 42,536 $ 22,137 $ 232,478 $ 231,701 $ 4,858 $ 533,710 Real Estate- Mortgage September 30, 2016 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Allowance for loan and lease losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 184 $ 17 $ 104 $ 239 $ - $ 544 Collectively evaluated for impairment 329 121 2,657 2,656 27 5,790 Total ending allowance balance $ 513 $ 138 $ 2,761 $ 2,895 $ 27 $ 6,334 Real Estate- Mortgage December 31, 2015 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Allowance for loan and lease losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 388 $ 130 $ 276 $ 39 $ - $ 833 Collectively evaluated for impairment 479 146 2,863 2,039 25 5,552 Total ending allowance balance $ 867 $ 276 $ 3,139 $ 2,078 $ 25 $ 6,385 The Company’s loan portfolio is segmented to a level that allows management to monitor risk and performance. The portfolio is segmented into Commercial and Industrial (“C&I”), Real Estate Construction, Real Estate - Mortgage which is further segmented into Residential and Commercial real estate (“CRE”), and Consumer Installment Loans. The C&I loan segment consists of loans made for the purpose of financing the activities of commercial customers. The residential mortgage loan segment consists of loans made for the purpose of financing the activities of residential homeowners. The commercial mortgage loan segment consists of loans made for the purpose of financing the activities of commercial real estate owners and operators. The consumer loan segment consists primarily of installment loans and overdraft lines of credit connected with customer deposit accounts. The decrease in the allowance for loan loss for C&I and Residential real estate loan portfolios were offset by increase in the allowance for the CRE loan portfolio. Management evaluates individual loans in all of the commercial segments for possible impairment based on guidance established by the Board of Directors. Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company does not separately evaluate individual consumer and residential mortgage loans for impairment, unless such loans are part of a larger relationship that is impaired. Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of the following methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The following tables present impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary (in thousands): September 30, 2016 Impaired Loans Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Commercial and industrial $ 569 $ 569 $ - Real estate - construction 1,076 1,076 - Real estate - mortgage: Residential 2,774 2,771 - Commercial 1,378 1,375 - Consumer installment 5 5 - Total $ 5,797 $ 5,791 $ - With an allowance recorded: Commercial and industrial $ 275 $ 275 $ 184 Real estate - construction 17 17 17 Real estate - mortgage: Residential 464 462 104 Commercial 5,088 5,078 239 Consumer installment - - - Total $ 5,849 $ 5,837 $ 544 Total: Commercial and industrial $ 844 $ 844 $ 184 Real estate - construction 1,093 1,093 17 Real estate - mortgage: Residential 3,238 3,233 104 Commercial 6,466 6,453 239 Consumer installment 5 5 - Total $ 11,646 $ 11,628 $ 544 December 31, 2015 Impaired Loans Balance Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Commercial and industrial $ 1,027 $ 1,025 $ - Real estate - construction 1,657 1,651 - Real estate - mortgage: Residential 2,445 2,443 - Commercial 2,337 2,335 - Consumer installment 6 6 - Total $ 7,466 $ 7,454 $ - With an allowance recorded: Commercial and industrial $ 781 $ 781 $ 388 Real estate - construction 130 130 130 Real estate - mortgage: Residential 1,436 1,436 276 Commercial 3,862 3,846 39 Consumer installment - - - Total $ 6,215 $ 6,199 $ 833 Total: Commercial and industrial $ 1,808 $ 1,806 $ 388 Real estate - construction 1,787 1,781 130 Real estate - mortgage: Residential 3,881 3,879 276 Commercial 6,199 6,181 39 Consumer installment 6 6 - Total $ 13,681 $ 13,653 $ 833 The following tables present interest income by class, recognized on impaired loans (in thousands): For the Three Months Ended September 30, 2016 For the Nine Months Ended September 30, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 864 $ 4 $ 1,218 $ 9 Real estate - construction 1,105 3 1,404 22 Real estate - mortgage: Residential 3,389 - 3,660 36 Commercial 7,939 8 7,449 115 Consumer installment 5 - 6 - $ 13,302 $ 15 $ 13,737 $ 182 For the Three Months Ended September 30, 2015 For the Nine Months Ended September 30, 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 1,480 $ 21 $ 1,354 $ 73 Real estate - construction 2,347 28 2,614 94 Real estate - mortgage: Residential 4,195 43 4,514 128 Commercial 5,476 71 4,871 200 Consumer installment 6 - 6 - $ 13,504 $ 163 $ 13,359 $ 495 Management uses a nine-point internal risk-rating system to monitor the credit quality of the overall loan portfolio. The first five categories are considered not criticized and are aggregated as Pass rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due are considered Substandard. Any portion of a loan that has been charged off is placed in the Loss category. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan-rating process with several layers of internal and external oversight. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as bankruptcy, repossession, or death, occurs to raise awareness of a possible credit event. The Company’s Commercial Loan Officers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis with the Chief Credit Officer ultimately responsible for accurate and timely risk ratings. The Credit Department performs an annual review of all commercial relationships with loan balances of $1,000,000 or greater. Confirmation of the appropriate risk grade is included in the review on an ongoing basis. The Company engages an external consultant to conduct loan reviews on a semiannual basis. Generally, the external consultant reviews commercial relationships greater than $250,000 and/or criticized relationships greater than $125,000. Detailed reviews, including plans for resolution, are performed on loans classified as Substandard on a quarterly basis. Loans in the Special Mention and Substandard categories that are collectively evaluated for impairment are given separate consideration in the determination of the allowance. The primary risk of commercial and industrial loans is the current economic uncertainties. C&I loans are, by nature, secured by less substantial collateral than real estate-secured loans. The primary risk of real estate construction loans is potential delays and /or disputes during the completion process. The primary risk of residential real estate loans is current economic uncertainties along with the slow recovery in the housing market. The primary risk of commercial real estate loans is loss of income of the owner or occupier of the property and the inability of the market to sustain rent levels. Consumer installment loans historically have experienced higher delinquency rates. Consumer installments are typically secured by less substantial collateral than other types of credits. The following tables present the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk-rating system (in thousands): Special Total Pass Mention Substandard Doubtful Loans September 30, 2016 Commercial and industrial $ 57,954 $ 445 $ 977 $ - $ 59,376 Real estate - construction 17,448 144 24 17 17,633 Real estate - mortgage: Residential 252,783 433 5,376 - 258,952 Commercial 237,916 3,141 4,579 - 245,636 Consumer installment 4,723 - 9 - 4,732 Total $ 540,188 $ 4,163 $ 11,325 $ 17 $ 586,329 Special Total December 31, 2015 Pass Mention Substandard Doubtful Loans Commercial and industrial $ 40,560 $ 242 $ 1,734 $ - $ 42,536 Real estate - construction 22,007 - - 130 22,137 Real estate - mortgage: Residential 225,945 728 5,805 - 232,478 Commercial 219,331 4,327 8,043 - 231,701 Consumer installment 4,854 - 4 - 4,858 Total $ 512,697 $ 5,297 $ 15,586 $ 130 $ 533,710 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. Nonperforming assets include nonaccrual loans, troubled debt restructurings (TDRs), loans 90 days or more past due, EMORECO assets, other real estate owned, and repossessed assets. A loan is classified as nonaccrual when, in the opinion of management, there are serious doubts about collectability of interest and principal. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions, the borrower’s financial condition is such that collection of principal and interest is doubtful. Payments received on nonaccrual loans are applied against the principal balance. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans (in thousands): 30-59 Days 60-89 Days 90 Days+ Total Total Current Past Due Past Due Past Due Past Due Loans September 30, 2016 Commercial and industrial $ 58,889 $ 59 $ 92 $ 336 $ 487 $ 59,376 Real estate - construction 17,633 - - - - 17,633 Real estate - mortgage: Residential 257,068 1,052 547 285 1,884 258,952 Commercial 244,771 121 - 744 865 245,636 Consumer installment 4,656 76 - - 76 4,732 Total $ 583,017 $ 1,308 $ 639 $ 1,365 $ 3,312 $ 586,329 30-59 Days 60-89 Days 90 Days+ Total Total Current Past Due Past Due Past Due Past Due Loans December 31, 2015 Commercial and industrial $ 41,544 $ 225 $ 26 $ 741 $ 992 $ 42,536 Real estate - construction 22,137 - - - - 22,137 Real estate - mortgage: Residential 229,725 1,482 92 1,179 2,753 232,478 Commercial 230,903 189 - 609 798 231,701 Consumer installment 4,837 16 3 2 21 4,858 Total $ 529,146 $ 1,912 $ 121 $ 2,531 $ 4,564 $ 533,710 The following tables present the classes of the loan portfolio summarized by nonaccrual loans (in thousands): September 30, 2016 90+ Days Past Due Nonaccrual and Accruing Commercial and industrial $ 920 $ - Real estate - construction 17 - Real estate - mortgage: Residential 3,822 - Commercial 1,730 - Consumer installment - - Total $ 6,490 $ - December 31, 2015 90+ Days Past Due Nonaccrual and Accruing Commercial and industrial $ 1,450 $ - Real estate - construction 130 - Real estate - mortgage: Residential 4,122 - Commercial 1,842 - Consumer installment 1 2 Total $ 7,545 $ 2 An allowance for loan and lease losses (“ALLL”) is maintained to absorb losses from the loan portfolio. The ALLL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of nonperforming loans. The Company’s methodology for determining the ALLL is based on the requirements of ASC Section 310-10-35 for loans individually evaluated for impairment (discussed above) and ASC Subtopic 450-20 for loans collectively evaluated for impairment, as well as the Interagency Policy Statements on the Allowance for Loan and Lease Losses and other bank regulatory guidance. The total of the two components represents the Company’s ALLL. Management also performs impairment analyses on TDRs, which may result in specific reserves. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are modified by other qualitative factors. The classes described above, which are based on the purpose code assigned to each loan, provide the starting point for the ALLL analysis. Management tracks the historical net charge-off activity at the purpose code level. A historical charge-off factor is calculated using the last four consecutive historical quarters. Management has identified a number of additional qualitative factors which it uses to supplement the historical charge-off factor because these factors are likely to cause estimated credit losses associated with the existing loan pools to differ from historical loss experience. The additional factors that are evaluated quarterly and updated using information obtained from internal, regulatory, and governmental sources are: national and local economic trends and conditions; levels of and trends in delinquency rates and nonaccrual loans; trends in volumes and terms of loans; effects of changes in lending policies; experience, ability, and depth of lending staff; value of underlying collateral; and concentrations of credit from a loan type, industry and/or geographic standpoint. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALLL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALLL. The following tables summarize the primary segments of the loan portfolio (in thousands): Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at December 31, 2015 $ 867 $ 276 $ 3,139 $ 2,078 $ 25 $ 6,385 Charge-offs (197 ) - (394 ) (70 ) (18 ) (679 ) Recoveries 51 - 113 140 9 313 Provision (208 ) (138 ) (97 ) 747 11 315 ALLL balance at September 30, 2016 $ 513 $ 138 $ 2,761 $ 2,895 $ 27 $ 6,334 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercia l mortgage Consumer installment Total ALLL balance at December 31, 2014 $ 642 $ 868 $ 3,703 $ 1,576 $ 57 $ 6,846 Charge-offs (196 ) (385 ) (425 ) (92 ) (11 ) (1,109 ) Recoveries 186 - 161 5 21 373 Provision (54 ) (149 ) (13 ) 450 (24 ) 210 ALLL balance at September 30, 2015 $ 578 $ 334 $ 3,426 $ 1,939 $ 43 $ 6,320 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at June 30, 2016 $ 484 $ 159 $ 2,788 $ 2,909 $ 26 $ 6,366 Charge-offs (74 ) - (149 ) - (3 ) (226 ) Recoveries 4 - 82 - 3 89 Provision 99 (21 ) 40 (14 ) 1 105 ALLL balance at September 30, 2016 $ 513 $ 138 $ 2,761 $ 2,895 $ 27 $ 6,334 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at June 30, 2015 $ 610 $ 363 $ 3,347 $ 1,978 $ 48 $ 6,346 Charge-offs (100 ) - (124 ) (5 ) - (229 ) Recoveries 5 - 81 5 7 98 Provision 63 (29 ) 122 (39 ) (12 ) 105 ALLL balance at September 30, 2015 $ 578 $ 334 $ 3,426 $ 1,939 $ 43 $ 6,320 For the three months ended September 30, 2016 there were no troubled debt restructurings. The following tables summarize troubled debt restructurings (in thousands): For the Nine Months Ended September 30, 2016 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial 2 - 2 $ 169 $ 169 Residential real estate 1 - 1 58 58 Commercial real estate 1 - 1 311 311 Consumer - - - - - For the Three Months Ended September 30, 2015 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial 2 - 2 $ 15 $ 15 Real estate construction - - - - - Residential real estate 1 - 1 164 164 Consumer 1 - 1 9 9 For the Nine Months Ended September 30, 2015 Number of Contracts Pre-Modification Outstanding Post-Modification Outstanding Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial 3 1 4 $ 126 $ 126 Real estate construction 1 - 1 181 181 Residential real estate 2 1 3 398 418 Consumer 1 - 1 9 9 The following tables summarizes subsequent defaults of troubled debt restructurings (in thousands): For the Three Months Ended September 30, 2016 Troubled Debt Restructurings Number of Contracts Recorded Investment Commercial and industrial 1 $ 3 Residential real estate 1 58 For the Nine Months Ended September 30, 2016 Troubled Debt Restructurings Number of Contracts Recorded Investment Commercial and industrial 2 $ 273 Real estate construction 1 58 For the Three Months Ended September 30, 2015 Troubled Debt Restructurings Number of Contracts Recorded Investment Commercial and industrial 1 $ 8 Real estate construction - - Consumer 1 8 For the Nine Months Ended September 30, 2015 Troubled Debt Restructurings Number of Contracts Recorded Investment Commercial and industrial 3 $ 55 Real estate construction 1 152 Consumer 1 8 |
Note 8 - Other Real Estate Owne
Note 8 - Other Real Estate Owned ("OREO") | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Other Real Estate Owned (OREO) [Text Block] | NOTE 8 – OTHER REAL ESTATE OWNED (“OREO”) OREO comprises foreclosed assets acquired in settlement of loans and is carried at fair value less estimated cost to sell and is included in other assets on the Consolidated Balance Sheet. At September 30, 2016 and December 31, 2015, there was $1.2 and 1.4 million of OREO, respectively. As of September 30, 2016, there were no formal foreclosure proceedings. |
Note 9 - Subsequent Event
Note 9 - Subsequent Event | 9 Months Ended |
Sep. 30, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 9 – PROPOSED ACQUISITION OF LIBERTY BANK, N.A. On July 28, 2016 Middlefield Banc Corp. and Liberty Bank, N.A. entered into an Agreement and Plan of Reorganization. Under the agreement Liberty Bank, N.A. will merge into The Middlefield Banking Company. Of the total merger consideration payable to shareholders of Liberty Bank, N.A., the merger agreement provides that 45% will consist of Middlefield Banc Corp. common stock and the remainder will be cash, for cash of approximately $37.96 per share or Middlefield Banc Corp. common stock at a fixed ratio of 1.1934 for each share of Liberty Bank, N.A. stock exchanged for Middlefield Banc Corp. stock. Liberty Bank, N.A.’s outstanding equity-based awards will be surrendered for total cash currently estimated at approximately $1.147 million. The merger agreement also provides that Liberty Bank, N.A. will pay to its shareholders before merger closing a special dividend in an amount of approximately $3.0 million, subject to possible upward adjustment. Middlefield Banc Corp. owns 23,218 shares of Liberty Bank, N.A. stock, or approximately 2.4%. Those shares will be cancelled in the merger for no consideration. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements – In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, this Update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation ( Topic 718 ): Accounting for Share-Based Payments when the Terms of an Award Provide that a Performance Target Could Be Achieved After the Requisite Service Period In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810) In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30) In April 2015, the FASB issued ASU 2015-04, Compensation – Retirement Benefits (Topic 715), In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) In April 2015, the FASB issued ASU 2015-06, Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions. Earnings Per Share Application of the Two-Class Method Under FASB Statement No. 128 to Master Limited Partnerships In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) In May 2015, the FASB issued ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosure About Short-Duration Contracts Financial Services – Insurance In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements In August 2015, the FASB issued ASU 2015-14, Revenue from Contract with Customers Topic 606 In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-04, Liabilities – Extinguishments of Liabilities (Subtopic 405-20). In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815) . In March 2016, the FASB issued ASU 2016-06, Derivatives and Hedging (Topic 815) In March 2016, the FASB issued ASU 2016-07, Investments – Equity Method and Joint Ventures (Topic 323) In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606). Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) Share-Based Payment In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606). Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivative and Hedging (Topic 815), which rescinds SEC paragraphs pursuant to two SEC Staff Announcements at the March 3, 2016, Emerging Issues Task Force meeting. This Update did not have a significant impact on the Company’s financial statements In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606), which among other things clarifies the objective of the collectability criterion in Topic 606, as well as certain narrow aspects of Topic 606. The amendments in this Update affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which is not yet effective. The effective date and transition requirements for the amendments in this Update are the same as the effective date and transition requirements for Topic 606 (and any other Topic amended by Update 2014-09). ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, defers the effective date of Update 2014-09 by one year. This Update is not expected to have a significant impact on the Company’s financial statements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”), which addresses eight specific cash flow issues with the objective of reducing diversity in practice. Among these include recognizing cash payments for debt prepayment or debt extinguishment as cash outflows for financing activities; cash proceeds received from the settlement of insurance claims should be classified on the basis of the related insurance coverage; and cash proceeds received from the settlement of bank-owned life insurance policies should be classified as cash inflows from investing activities while the cash payments for premiums on bank-owned policies may be classified as cash outflows for investing activities, operating activities, or a combination of investing and operating activities. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s statement of cash flows. |
Note 2 - Stock-based Compensa19
Note 2 - Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted- Weighted- average average Exercise Exercise 2016 Price 2015 Price Outstanding, January 1 31,949 $ 25.03 46,451 $ 27.90 Expired - - (3,639 ) 37.33 Exercised - - (1,025 ) 20.21 Outstanding, September 30 31,949 $ 25.03 41,787 $ 27.27 Exercisable, September 30 31,949 $ 25.03 41,787 $ 27.27 |
Note 3 - Earnings Per Share (Ta
Note 3 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | For the Three For the Nine Months Ended Months Ended September 30, September 30, 2016 2015 2016 2015 Weighted-average common shares outstanding 2,633,752 2,253,584 2,445,821 2,248,468 Average treasury stock shares (386,165 ) (189,530 ) (386,165 ) (189,530 ) Weighted-average common shares and common stock equivalents used to calculate basic earnings per share 2,247,587 2,064,054 2,059,656 2,058,938 Additional common stock equivalents (stock options) used to calculate diluted earnings per share 8,643 8,585 8,876 9,254 Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 2,256,230 2,072,639 2,068,532 2,068,192 |
Note 4 - Fair Value Measureme21
Note 4 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | September 30, 2016 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a recurring basis: U.S. government agency securities $ - $ 10,863 $ - $ 10,863 Obligations of states and political subdivisions - 87,525 - 87,525 Mortgage-backed securities in government- sponsored entities - 21,380 - 21,380 Private-label mortgage-backed securities - 2,068 - 2,068 Total debt securities - 121,836 - 121,836 Equity securities in financial institutions 5 1,213 - 1,218 Total $ 5 $ 123,049 $ - $ 123,054 December 31, 2015 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a recurring basis: U.S. government agency securities $ - $ 21,629 $ - $ 21,629 Obligations of states and political subdivisions - 97,290 - 97,290 Mortgage-backed securities in government- sponsored entities - 24,524 - 24,524 Private-label mortgage-backed securities - 2,263 - 2,263 Total debt securities - 145,706 - 145,706 Equity securities in financial institutions 5 809 - 814 Total $ 5 $ 146,515 $ - $ 146,520 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | September 30, 2016 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a nonrecurring basis: Impaired loans $ - $ - $ 11,102 $ 11,102 Other real estate owned - - 1,205 1,205 December 31, 2015 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a nonrecurring basis: Impaired loans $ - $ - $ 12,848 $ 12,848 Other real estate owned - - 1,412 1,412 |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | Quantitative Information about Level III Fair Value Measurements (Dollar amounts in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) September 30, 2016 Impaired loans $ 7,743 Discounted cash flow Discount rate 3.1% to 7.0% (5.0%) 3,359 Appraisal of collateral (1) Appraisal adjustments (2) 0.0% to 55.7% (34.6%) Other real estate owned $ 1,205 Appraisal of collateral (1) Appraisal adjustments (2) 0.0% to 10.0% (7.3%) Quantitative Information about Level III Fair Value Measurements (Dollar amounts in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2015 Impaired loans $ 6,867 Discounted cash flow Discount rate 3.1% to 7.9% (5.0%) 5,981 Appraisal of collateral (1) Appraisal adjustments (2) 0.0% to 87.1% (23.3%) Other real estate owned $ 1,412 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 10.0% (7.3%) |
Fair Value, by Balance Sheet Grouping [Table Text Block] | September 30, 2016 Carrying Total Value Level I Level II Level III Fair Value (Dollar amounts in thousands) Financial assets: Cash and cash equivalents $ 23,276 $ 23,276 $ - $ - $ 23,276 Investment securities Available for sale 123,054 5 123,049 - 123,054 Loans held for sale 880 - 880 - 880 Net loans 579,995 - - 586,739 586,739 Bank-owned life insurance 13,438 13,438 - - 13,438 Federal Home Loan Bank stock 1,887 1,887 - - 1,887 Accrued interest receivable 2,526 2,526 - - 2,526 Financial liabilities: Deposits $ 639,342 $ 454,427 $ - $ 188,668 $ 643,095 Short-term borrowings 32,803 32,803 - - 32,803 Other borrowings 9,713 - - 10,003 10,003 Accrued interest payable 391 391 - - 391 December 31, 2015 Carrying Total Value Level I Level II Level III Fair Value (Dollar amounts in thousands) Financial assets: Cash and cash equivalents $ 23,750 $ 23,750 $ - $ - $ 23,750 Investment securities Available for sale 146,520 5 146,515 - 146,520 Loans held for sale 1,107 - 1,107 - 1,107 Net loans 527,325 - - 534,021 534,021 Bank-owned life insurance 13,141 13,141 - - 13,141 Federal Home Loan Bank stock 1,887 1,887 - - 1,887 Accrued interest receivable 2,387 2,387 - - 2,387 Financial liabilities: Deposits $ 624,447 $ 433,226 $ - $ 191,747 $ 624,973 Short-term borrowings 35,825 35,825 - - 35,825 Other borrowings 9,939 - 10,063 10,063 Accrued interest payable 395 395 - - 395 |
Note 5 - Accumulated Other Co22
Note 5 - Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Unrealized gains on available-for-sale (Dollars in thousands) securities Balance as of December 31, 2015 $ 2,395 Other comprehensive income before reclassification 1,421 Amount reclassified from accumulated other comprehensive income (200 ) Period change 1,221 Balance at September 30, 2016 $ 3,616 Balance as of June 30, 2016 $ 3,879 Other comprehensive income before reclassification (263 ) Amount reclassified from accumulated other comprehensive income - Period change (263 ) Balance at September 30, 2016 $ 3,616 Unrealized gains on available-for-sale (Dollars in thousands) securities Balance as of December 31, 2014 $ 2,548 Other comprehensive income before reclassification (461 ) Amount reclassified from accumulated other comprehensive income (170 ) Period change (631 ) Balance at September 30, 2015 1,917 Balance as of June 30, 2015 $ 1,122 Other comprehensive loss before reclassification 935 Amount reclassified from accumulated other comprehensive income (140 ) Period change 795 Balance at September 30, 2015 $ 1,917 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Amount Reclassified from Accumulated Other Comprehensive Affected Line Item in Income (a) the Statement Where (Dollars in thousands) For the Three Months Ended Net Income is Details about other comprehensive income September 30, 2016 September 30, 2015 Presented Unrealized gains on available-for-sale securities $ - $ 211 Investment securities gains, net - (71 ) Income taxes $ - $ 140 Net of tax Amount Reclassified from Accumulated Other Comprehensive Affected Line Item in Income (a) the Statement Where (Dollars in thousands) For the Nine Months Ended Net Income is Details about other comprehensive income September 30, 2016 September 30, 2015 Presented Unrealized gains on available-for-sale securities $ 303 $ 257 Investment securities gains, net (103 ) (87 ) Income taxes $ 200 $ 170 Net of tax |
Note 6 - Investment Securitie23
Note 6 - Investment Securities Available for Sale (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | September 30, 2016 Gross Gross Amortized Unrealized Unrealized Fair (Dollar amounts in thousands) Cost Gains Losses Value U.S. government agency securities $ 10,516 $ 359 $ (12 ) $ 10,863 Obligations of states and political subdivisions: Taxable 1,616 186 - 1,802 Tax-exempt 81,829 3,899 (5 ) 85,723 Mortgage-backed securities in government-sponsored entities 20,939 485 (44 ) 21,380 Private-label mortgage-backed securities 1,927 141 - 2,068 Total debt securities 116,827 5,070 (61 ) 121,836 Equity securities in financial institutions 750 468 - 1,218 Total $ 117,577 $ 5,538 $ (61 ) $ 123,054 December 31, 2015 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. government agency securities $ 21,655 $ 245 $ (271 ) $ 21,629 Obligations of states and political subdivisions: Taxable 1,989 134 - 2,123 Tax-exempt 91,940 3,402 (175 ) 95,167 Mortgage-backed securities in government-sponsored entities 24,480 316 (272 ) 24,524 Private-label mortgage-backed securities 2,079 184 - 2,263 Total debt securities 142,143 4,281 (718 ) 145,706 Equity securities in financial institutions 750 64 - 814 Total $ 142,893 $ 4,345 $ (718 ) $ 146,520 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Amortized Fair (Dollar amounts in thousands) Cost Value Due in one year or less $ 2,842 $ 2,879 Due after one year through five years 9,132 9,500 Due after five years through ten years 12,916 13,510 Due after ten years 91,937 95,947 Total $ 116,827 $ 121,836 |
Realized Gain (Loss) on Investments [Table Text Block] | For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Proceeds from sales $ - $ 11,973 $ 9,115 $ 15,284 Gross realized gains - 233 306 373 Gross realized losses - (22 ) (3 ) (116 ) |
Schedule of Unrealized Loss on Investments [Table Text Block] | September 30, 2016 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized (Dollar amounts in thousands) Value Losses Value Losses Value Losses U.S. government agency securities $ 2,000 $ - $ 1,465 $ (12 ) $ 3,465 $ (12 ) Obligations of states and political subdivisions Tax-exempt 608 - - (5 ) 608 (5 ) Mortgage-backed securities in government-sponsored entities - - 4,709 (44 ) 4,709 (44 ) Private-label mortgage-backed securities 75 - - - 75 - Total $ 2,683 $ - $ 6,174 $ (61 ) $ 8,857 $ (61 ) December 31, 2015 Less than Twelve Months Twelve Months or Greater Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. government agency securities $ 3,818 $ (57 ) $ 10,872 $ (214 ) $ 14,690 $ (271 ) Obligations of states and political subdivisions Tax-exempt 1,268 (9 ) 9,394 (166 ) 10,662 (175 ) Mortgage-backed securities in government-sponsored entities 8,725 (86 ) 6,685 (186 ) 15,410 (272 ) Total $ 13,811 $ (152 ) $ 26,951 $ (566 ) $ 40,762 $ (718 ) |
Note 7 - Loans and Related Al24
Note 7 - Loans and Related Allowance for Loan and Lease Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Subsequently Defaulted [Member] | |
Notes Tables | |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | For the Three Months Ended September 30, 2016 Troubled Debt Restructurings Number of Contracts Recorded Investment Commercial and industrial 1 $ 3 Residential real estate 1 58 For the Nine Months Ended September 30, 2016 Troubled Debt Restructurings Number of Contracts Recorded Investment Commercial and industrial 2 $ 273 Real estate construction 1 58 For the Three Months Ended September 30, 2015 Troubled Debt Restructurings Number of Contracts Recorded Investment Commercial and industrial 1 $ 8 Real estate construction - - Consumer 1 8 For the Nine Months Ended September 30, 2015 Troubled Debt Restructurings Number of Contracts Recorded Investment Commercial and industrial 3 $ 55 Real estate construction 1 152 Consumer 1 8 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | September 30, December 31, 2016 2015 Commercial and industrial $ 59,376 $ 42,536 Real estate - construction 17,633 22,137 Real estate - mortgage: Residential 258,952 232,478 Commercial 245,636 231,701 Consumer installment 4,732 4,858 586,329 533,710 Less: Allowance for loan and lease losses 6,334 6,385 Net loans $ 579,995 $ 527,325 |
Schedule Of Financing Receivable By Segment [Table Text Block] | Real Estate- Mortgage September 30, 2016 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Loans: Individually evaluated for impairment $ 844 $ 1,093 $ 3,238 $ 6,466 $ 5 $ 11,646 Collectively evaluated for impairment 58,532 16,540 255,714 239,170 4,727 574,683 Total loans $ 59,376 $ 17,633 $ 258,952 $ 245,636 $ 4,732 $ 586,329 Real estate- Mortgage December 31, 2015 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Loans: Individually evaluated for impairment $ 1,808 $ 1,787 $ 3,881 $ 6,199 $ 6 $ 13,681 Collectively evaluated for impairment 40,728 20,350 228,597 225,502 4,852 520,029 Total loans $ 42,536 $ 22,137 $ 232,478 $ 231,701 $ 4,858 $ 533,710 |
Schedule of Credit Losses for Financing Receivables, Current [Table Text Block] | Real Estate- Mortgage September 30, 2016 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Allowance for loan and lease losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 184 $ 17 $ 104 $ 239 $ - $ 544 Collectively evaluated for impairment 329 121 2,657 2,656 27 5,790 Total ending allowance balance $ 513 $ 138 $ 2,761 $ 2,895 $ 27 $ 6,334 Real Estate- Mortgage December 31, 2015 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Allowance for loan and lease losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 388 $ 130 $ 276 $ 39 $ - $ 833 Collectively evaluated for impairment 479 146 2,863 2,039 25 5,552 Total ending allowance balance $ 867 $ 276 $ 3,139 $ 2,078 $ 25 $ 6,385 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at December 31, 2015 $ 867 $ 276 $ 3,139 $ 2,078 $ 25 $ 6,385 Charge-offs (197 ) - (394 ) (70 ) (18 ) (679 ) Recoveries 51 - 113 140 9 313 Provision (208 ) (138 ) (97 ) 747 11 315 ALLL balance at September 30, 2016 $ 513 $ 138 $ 2,761 $ 2,895 $ 27 $ 6,334 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercia l mortgage Consumer installment Total ALLL balance at December 31, 2014 $ 642 $ 868 $ 3,703 $ 1,576 $ 57 $ 6,846 Charge-offs (196 ) (385 ) (425 ) (92 ) (11 ) (1,109 ) Recoveries 186 - 161 5 21 373 Provision (54 ) (149 ) (13 ) 450 (24 ) 210 ALLL balance at September 30, 2015 $ 578 $ 334 $ 3,426 $ 1,939 $ 43 $ 6,320 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at June 30, 2016 $ 484 $ 159 $ 2,788 $ 2,909 $ 26 $ 6,366 Charge-offs (74 ) - (149 ) - (3 ) (226 ) Recoveries 4 - 82 - 3 89 Provision 99 (21 ) 40 (14 ) 1 105 ALLL balance at September 30, 2016 $ 513 $ 138 $ 2,761 $ 2,895 $ 27 $ 6,334 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at June 30, 2015 $ 610 $ 363 $ 3,347 $ 1,978 $ 48 $ 6,346 Charge-offs (100 ) - (124 ) (5 ) - (229 ) Recoveries 5 - 81 5 7 98 Provision 63 (29 ) 122 (39 ) (12 ) 105 ALLL balance at September 30, 2015 $ 578 $ 334 $ 3,426 $ 1,939 $ 43 $ 6,320 |
Impaired Financing Receivables [Table Text Block] | September 30, 2016 Impaired Loans Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Commercial and industrial $ 569 $ 569 $ - Real estate - construction 1,076 1,076 - Real estate - mortgage: Residential 2,774 2,771 - Commercial 1,378 1,375 - Consumer installment 5 5 - Total $ 5,797 $ 5,791 $ - With an allowance recorded: Commercial and industrial $ 275 $ 275 $ 184 Real estate - construction 17 17 17 Real estate - mortgage: Residential 464 462 104 Commercial 5,088 5,078 239 Consumer installment - - - Total $ 5,849 $ 5,837 $ 544 Total: Commercial and industrial $ 844 $ 844 $ 184 Real estate - construction 1,093 1,093 17 Real estate - mortgage: Residential 3,238 3,233 104 Commercial 6,466 6,453 239 Consumer installment 5 5 - Total $ 11,646 $ 11,628 $ 544 December 31, 2015 Impaired Loans Balance Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Commercial and industrial $ 1,027 $ 1,025 $ - Real estate - construction 1,657 1,651 - Real estate - mortgage: Residential 2,445 2,443 - Commercial 2,337 2,335 - Consumer installment 6 6 - Total $ 7,466 $ 7,454 $ - With an allowance recorded: Commercial and industrial $ 781 $ 781 $ 388 Real estate - construction 130 130 130 Real estate - mortgage: Residential 1,436 1,436 276 Commercial 3,862 3,846 39 Consumer installment - - - Total $ 6,215 $ 6,199 $ 833 Total: Commercial and industrial $ 1,808 $ 1,806 $ 388 Real estate - construction 1,787 1,781 130 Real estate - mortgage: Residential 3,881 3,879 276 Commercial 6,199 6,181 39 Consumer installment 6 6 - Total $ 13,681 $ 13,653 $ 833 |
Schedule of Additional Information Related to Impaired Loans [Table Text Block] | For the Three Months Ended September 30, 2016 For the Nine Months Ended September 30, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 864 $ 4 $ 1,218 $ 9 Real estate - construction 1,105 3 1,404 22 Real estate - mortgage: Residential 3,389 - 3,660 36 Commercial 7,939 8 7,449 115 Consumer installment 5 - 6 - $ 13,302 $ 15 $ 13,737 $ 182 For the Three Months Ended September 30, 2015 For the Nine Months Ended September 30, 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 1,480 $ 21 $ 1,354 $ 73 Real estate - construction 2,347 28 2,614 94 Real estate - mortgage: Residential 4,195 43 4,514 128 Commercial 5,476 71 4,871 200 Consumer installment 6 - 6 - $ 13,504 $ 163 $ 13,359 $ 495 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Special Total Pass Mention Substandard Doubtful Loans September 30, 2016 Commercial and industrial $ 57,954 $ 445 $ 977 $ - $ 59,376 Real estate - construction 17,448 144 24 17 17,633 Real estate - mortgage: Residential 252,783 433 5,376 - 258,952 Commercial 237,916 3,141 4,579 - 245,636 Consumer installment 4,723 - 9 - 4,732 Total $ 540,188 $ 4,163 $ 11,325 $ 17 $ 586,329 Special Total December 31, 2015 Pass Mention Substandard Doubtful Loans Commercial and industrial $ 40,560 $ 242 $ 1,734 $ - $ 42,536 Real estate - construction 22,007 - - 130 22,137 Real estate - mortgage: Residential 225,945 728 5,805 - 232,478 Commercial 219,331 4,327 8,043 - 231,701 Consumer installment 4,854 - 4 - 4,858 Total $ 512,697 $ 5,297 $ 15,586 $ 130 $ 533,710 |
Past Due Financing Receivables [Table Text Block] | 30-59 Days 60-89 Days 90 Days+ Total Total Current Past Due Past Due Past Due Past Due Loans September 30, 2016 Commercial and industrial $ 58,889 $ 59 $ 92 $ 336 $ 487 $ 59,376 Real estate - construction 17,633 - - - - 17,633 Real estate - mortgage: Residential 257,068 1,052 547 285 1,884 258,952 Commercial 244,771 121 - 744 865 245,636 Consumer installment 4,656 76 - - 76 4,732 Total $ 583,017 $ 1,308 $ 639 $ 1,365 $ 3,312 $ 586,329 30-59 Days 60-89 Days 90 Days+ Total Total Current Past Due Past Due Past Due Past Due Loans December 31, 2015 Commercial and industrial $ 41,544 $ 225 $ 26 $ 741 $ 992 $ 42,536 Real estate - construction 22,137 - - - - 22,137 Real estate - mortgage: Residential 229,725 1,482 92 1,179 2,753 232,478 Commercial 230,903 189 - 609 798 231,701 Consumer installment 4,837 16 3 2 21 4,858 Total $ 529,146 $ 1,912 $ 121 $ 2,531 $ 4,564 $ 533,710 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | September 30, 2016 90+ Days Past Due Nonaccrual and Accruing Commercial and industrial $ 920 $ - Real estate - construction 17 - Real estate - mortgage: Residential 3,822 - Commercial 1,730 - Consumer installment - - Total $ 6,490 $ - December 31, 2015 90+ Days Past Due Nonaccrual and Accruing Commercial and industrial $ 1,450 $ - Real estate - construction 130 - Real estate - mortgage: Residential 4,122 - Commercial 1,842 - Consumer installment 1 2 Total $ 7,545 $ 2 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | For the Nine Months Ended September 30, 2016 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial 2 - 2 $ 169 $ 169 Residential real estate 1 - 1 58 58 Commercial real estate 1 - 1 311 311 Consumer - - - - - For the Three Months Ended September 30, 2015 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial 2 - 2 $ 15 $ 15 Real estate construction - - - - - Residential real estate 1 - 1 164 164 Consumer 1 - 1 9 9 For the Nine Months Ended September 30, 2015 Number of Contracts Pre-Modification Outstanding Post-Modification Outstanding Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial 3 1 4 $ 126 $ 126 Real estate construction 1 - 1 181 181 Residential real estate 2 1 3 398 418 Consumer 1 - 1 9 9 |
Note 2 - Stock-based Compensa25
Note 2 - Stock-based Compensation (Details Textual) - USD ($) | Sep. 30, 2016 | Sep. 30, 2015 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 0 | 0 |
Note 2 - Stock-based Compensa26
Note 2 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Outstanding, January 1 (in shares) | 31,949 | 46,451 |
Outstanding, January 1 (in dollars per share) | $ 25.03 | $ 27.90 |
Expired (in shares) | 0 | (3,639) |
Expired (in dollars per share) | $ 37.33 | |
Exercised (in shares) | 0 | (1,025) |
Exercised (in dollars per share) | $ 0 | $ 20.21 |
Outstanding, September 30 (in shares) | 31,949 | 41,787 |
Outstanding, September 30 (in dollars per share) | $ 25.03 | $ 27.27 |
Exercisable, September 30 (in shares) | 31,949 | 41,787 |
Exercisable, September 30 (in dollars per share) | $ 25.03 | $ 27.27 |
Note 3 - Earnings Per Share (De
Note 3 - Earnings Per Share (Details Textual) - $ / shares | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Stock Option [Member] | ||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 24,700 | 27,000 | 24,700 | 27,250 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 17.55 | $ 17.55 | $ 17.55 | $ 17.55 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 40.24 | $ 37.48 | $ 40.24 | $ 37.48 | ||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 8,643 | 8,585 | 8,876 | 9,254 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 31,949 | 41,787 | 31,949 | 41,787 | 31,949 | 46,451 |
Note 3 - Earnings Per Share - S
Note 3 - Earnings Per Share - Shares Used in Calculation of Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Weighted-average common shares outstanding (in shares) | 2,633,752 | 2,253,584 | 2,445,821 | 2,248,468 |
Average treasury stock shares (in shares) | (386,165) | (189,530) | (386,165) | (189,530) |
Weighted-average common shares and common stock equivalents used to calculate basic earnings per share (in shares) | 2,247,587 | 2,064,054 | 2,059,656 | 2,058,938 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 8,643 | 8,585 | 8,876 | 9,254 |
Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share (in shares) | 2,256,230 | 2,072,639 | 2,068,532 | 2,068,192 |
Note 4 - Fair Value Measureme29
Note 4 - Fair Value Measurements (Details Textual) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 3 [Member] | ||
Available-for-sale Securities | $ 0 | $ 0 |
Available-for-sale Securities | $ 123,054,000 | $ 146,520,000 |
Note 4 - Fair Value Measurments
Note 4 - Fair Value Measurments - Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | ||
Available-for-sale Securities | $ 10,863 | $ 21,629 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale Securities | 87,525 | 97,290 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Available-for-sale Securities | 21,380 | 24,524 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Available-for-sale Securities | 2,068 | 2,263 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | ||
Available-for-sale Securities | 121,836 | 145,706 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities In Financial Institutions [Member] | ||
Available-for-sale Securities | 1,213 | 809 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Available-for-sale Securities | 123,049 | 146,515 |
Fair Value, Inputs, Level 2 [Member] | ||
Available-for-sale Securities | 123,049 | 146,515 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities In Financial Institutions [Member] | ||
Available-for-sale Securities | 5 | 5 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Available-for-sale Securities | 5 | 5 |
Fair Value, Inputs, Level 1 [Member] | ||
Available-for-sale Securities | 5 | 5 |
US Government Agencies Debt Securities [Member] | ||
Available-for-sale Securities | 10,863 | 21,629 |
US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-sale Securities | 87,525 | 97,290 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Available-for-sale Securities | 21,380 | 24,524 |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Available-for-sale Securities | 2,068 | 2,263 |
Debt Securities [Member] | ||
Available-for-sale Securities | 121,836 | 145,706 |
Equity Securities In Financial Institutions [Member] | ||
Available-for-sale Securities | 1,218 | 814 |
Available-for-sale Securities | $ 123,054 | $ 146,520 |
Note 4 - Assets Measured on a N
Note 4 - Assets Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Impaired loans | $ 11,102 | $ 12,848 |
Other real estate owned | 1,205 | 1,412 |
Estimate of Fair Value Measurement [Member] | ||
Impaired loans | 11,102 | 12,848 |
Other real estate owned | 1,205 | 1,412 |
Impaired loans | 11,646 | 13,681 |
Other real estate owned | $ 1,200 | $ 1,400 |
Note 4 - Fair Value Measureme32
Note 4 - Fair Value Measurements - Additional Quantitative Information about Assets Measured at Fair Value on Non-recurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | ||
Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Minimum [Member] | |||
Discount rate | 3.10% | 3.10% | |
Discount rate, weighted average | (3.10%) | (3.10%) | |
Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Maximum [Member] | |||
Discount rate | 7.00% | 7.90% | |
Discount rate, weighted average | (7.00%) | (7.90%) | |
Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Weighted Average [Member] | |||
Discount rate | 5.00% | 5.00% | |
Discount rate, weighted average | (5.00%) | (5.00%) | |
Impaired Loans [Member] | Income Approach Valuation Technique [Member] | |||
Fair value estimate | $ 7,743 | $ 6,867 | |
Valuation Techniques / Unobservable Input | Discounted cash flow | Discounted cash flow / Discount rate | |
Impaired Loans [Member] | Appraisal Adjustments [Member] | Minimum [Member] | |||
Discount rate | 0.00% | 0.00% | |
Discount rate, weighted average | 0.00% | 0.00% | |
Impaired Loans [Member] | Appraisal Adjustments [Member] | Maximum [Member] | |||
Discount rate | 55.70% | 87.10% | |
Discount rate, weighted average | (55.70%) | (87.10%) | |
Impaired Loans [Member] | Appraisal Adjustments [Member] | Weighted Average [Member] | |||
Discount rate | 34.60% | 23.30% | |
Discount rate, weighted average | (34.60%) | (23.30%) | |
Impaired Loans [Member] | Appraisal Adjustments [Member] | |||
Fair value estimate | $ 3,359 | $ 5,981 | |
Valuation Techniques / Unobservable Input | [1],[2] | Appraisal of collateral (1) | Appraisal of collateral / Appraisal adjustments |
Other Real Estate Owned [Member] | Appraisal Adjustments [Member] | Minimum [Member] | |||
Discount rate | 0.00% | 0.00% | |
Discount rate, weighted average | 0.00% | 0.00% | |
Other Real Estate Owned [Member] | Appraisal Adjustments [Member] | Maximum [Member] | |||
Discount rate | 10.00% | 10.00% | |
Discount rate, weighted average | (10.00%) | (10.00%) | |
Other Real Estate Owned [Member] | Appraisal Adjustments [Member] | Weighted Average [Member] | |||
Discount rate | 7.30% | 7.30% | |
Discount rate, weighted average | (7.30%) | (7.30%) | |
Other Real Estate Owned [Member] | Appraisal Adjustments [Member] | |||
Fair value estimate | $ 1,205 | $ 1,412 | |
Valuation Techniques / Unobservable Input | [1],[2] | Appraisal of collateral / Appraisal adjustments | Appraisal of collateral / Appraisal adjustments |
[1] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. | ||
[2] | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. |
Note 4 - Fair Value Measureme33
Note 4 - Fair Value Measurements - Estimated Fair Value of the Company's Financial Instruments (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 1 [Member] | ||||
Cash and cash equivalents, fair value | $ 23,276,000 | $ 23,750,000 | ||
Available-for-sale Securities | 5,000 | 5,000 | ||
Available for sale, fair value | 5,000 | 5,000 | ||
Bank-owned life insurance | 13,438,000 | 13,141,000 | ||
Bank-owned life insurance, fair value | 13,438,000 | 13,141,000 | ||
Federal Home Loan Bank stock | 1,887,000 | 1,887,000 | ||
Federal Home Loan Bank stock, fair value | 1,887,000 | 1,887,000 | ||
Accrued interest receivable | 2,526,000 | 2,387,000 | ||
Accrued interest receivable, fair value | 2,526,000 | 2,387,000 | ||
Deposits, fair value | 454,427,000 | 433,226,000 | ||
Short-term borrowings, fair value | 32,803,000 | 35,825,000 | ||
Accrued interest payable | 391,000 | 395,000 | ||
Accrued interest payable, fair value | 391,000 | 395,000 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Available-for-sale Securities | 123,049,000 | 146,515,000 | ||
Available for sale, fair value | 123,049,000 | 146,515,000 | ||
Loans held for sale, fair value | 880,000 | 1,107,000 | ||
Deposits, fair value | ||||
Fair Value, Inputs, Level 3 [Member] | ||||
Available-for-sale Securities | 0 | 0 | ||
Available for sale, fair value | 0 | 0 | ||
Net loans, fair value | 586,739,000 | 534,021,000 | ||
Deposits, fair value | 188,668,000 | 191,747,000 | ||
Other borrowings, fair value | 10,003,000 | 10,063,000 | ||
Cash and cash equivalents | 23,276,000 | 23,750,000 | $ 23,295,000 | $ 25,639,000 |
Cash and cash equivalents, fair value | 23,276,000 | 23,750,000 | ||
Available-for-sale Securities | 123,054,000 | 146,520,000 | ||
Available for sale, fair value | 123,054,000 | 146,520,000 | ||
Loans held for sale | 880,000 | 1,107,000 | ||
Loans held for sale, fair value | 880,000 | 1,107,000 | ||
Net loans | 579,995,000 | 527,325,000 | ||
Net loans, fair value | 586,739,000 | 534,021,000 | ||
Bank-owned life insurance | 13,438,000 | 13,141,000 | ||
Bank-owned life insurance, fair value | 13,438,000 | 13,141,000 | ||
Federal Home Loan Bank stock | 1,887,000 | 1,887,000 | ||
Federal Home Loan Bank stock, fair value | 1,887,000 | 1,887,000 | ||
Accrued interest receivable | 2,526,000 | 2,387,000 | ||
Accrued interest receivable, fair value | 2,526,000 | 2,387,000 | ||
Deposits | 639,342,000 | 624,447,000 | ||
Deposits, fair value | 643,095,000 | 624,973,000 | ||
Short-term borrowings | 32,803,000 | 35,825,000 | ||
Short-term borrowings, fair value | 32,803,000 | 35,825,000 | ||
Other borrowings | 9,713,000 | 9,939,000 | ||
Other borrowings, fair value | 10,003,000 | 10,063,000 | ||
Accrued interest payable | 391,000 | 395,000 | ||
Accrued interest payable, fair value | $ 391,000 | $ 395,000 |
Note 5 - Accumulate Other Compr
Note 5 - Accumulate Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Beginning balance | $ 3,879 | $ 1,122 | $ 2,395 | $ 2,548 |
Other comprehensive income before reclassification | (263) | 935 | 1,421 | (461) |
Amount reclassified from accumulated other comprehensive income | (140) | (200) | (170) | |
Period change | (263) | 795 | 1,221 | (631) |
Ending balance | $ 3,616 | $ 1,917 | $ 3,616 | $ 1,917 |
Note 5 - Accumulated Other Co35
Note 5 - Accumulated Other Comprehensive Income - Significant Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Unrealized gains on available-for-sale securities | [1] | $ 211 | $ 303 | $ 257 | |
Income taxes | (71) | (103) | (87) | ||
Net of tax | $ 140 | $ 200 | $ 170 | ||
[1] | Amounts in parentheses indicate debits to net income. |
Note 6 - Investment Securitie36
Note 6 - Investment Securities Available for Sale (Details Textual) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | $ 0 | |
Available-for-sale Securities Pledged as Collateral | $ 64,700,000 | $ 68,800,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 9 | |
Available-for-sale Securities, Percentage of Portfolio | 97.00% |
Note 6 - Investment Securitie37
Note 6 - Investment Securities Available for Sale - Amortized Cost and Fair Values of Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
US Government Agencies Debt Securities [Member] | ||
Amortized cost | $ 10,516 | $ 21,655 |
Gross unrealized gains | 359 | 245 |
Gross unrealized losses | (12) | (271) |
Investment securities available for sale, at fair value | 10,863 | 21,629 |
US States and Political Subdivisions Debt Securities [Member] | Taxable [Member] | ||
Amortized cost | 1,616 | 1,989 |
Gross unrealized gains | 186 | 134 |
Gross unrealized losses | ||
Investment securities available for sale, at fair value | 1,802 | 2,123 |
US States and Political Subdivisions Debt Securities [Member] | Tax Exempt [Member] | ||
Amortized cost | 81,829 | 91,940 |
Gross unrealized gains | 3,899 | 3,402 |
Gross unrealized losses | (5) | (175) |
Investment securities available for sale, at fair value | 85,723 | 95,167 |
US States and Political Subdivisions Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 87,525 | 97,290 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Amortized cost | 20,939 | 24,480 |
Gross unrealized gains | 485 | 316 |
Gross unrealized losses | (44) | (272) |
Investment securities available for sale, at fair value | 21,380 | 24,524 |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Amortized cost | 1,927 | 2,079 |
Gross unrealized gains | 141 | 184 |
Gross unrealized losses | ||
Investment securities available for sale, at fair value | 2,068 | 2,263 |
Debt Securities [Member] | ||
Amortized cost | 116,827 | 142,143 |
Gross unrealized gains | 5,070 | 4,281 |
Gross unrealized losses | (61) | (718) |
Investment securities available for sale, at fair value | 121,836 | 145,706 |
Equity Securities In Financial Institutions [Member] | ||
Amortized cost | 750 | 750 |
Gross unrealized gains | 468 | 64 |
Gross unrealized losses | ||
Investment securities available for sale, at fair value | 1,218 | 814 |
Amortized cost | 117,577 | 142,893 |
Gross unrealized gains | 5,538 | 4,345 |
Gross unrealized losses | (61) | (718) |
Investment securities available for sale, at fair value | $ 123,054 | $ 146,520 |
Note 6 - Investment Securitie38
Note 6 - Investment Securities Available for Sale - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Due in one year or less | $ 2,842 |
Due in one year or less | 2,879 |
Due after one year through five years | 9,132 |
Due after one year through five years | 9,500 |
Due after five years through ten years | 12,916 |
Due after five years through ten years | 13,510 |
Due after ten years | 91,937 |
Due after ten years | 95,947 |
Total | 116,827 |
Total | $ 121,836 |
Note 6 - Investment Securitie39
Note 6 - Investment Securities Available for Sale - Sales of Available for Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Proceeds from sales | $ 11,973 | $ 9,115 | $ 15,284 | |
Gross realized gains | 233 | 306 | 373 | |
Gross realized losses | $ (22) | $ (3) | $ (116) |
Note 6 - Investment Securitie40
Note 6 - Investment Securities Available for Sale - Gross Unrealized Losses and Fair Value (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
US Government Agencies Debt Securities [Member] | ||
Less than Twelve Months, Fair Value | $ 2,000,000 | $ 3,818,000 |
Less than Twelve Months, Gross Unrealized Losses | 0 | (57,000) |
Twelve Months or Greater, Fair Value | 1,465,000 | 10,872,000 |
Twelve Months or Greater, Gross Unrealized Losses | (12,000) | (214,000) |
Total, Fair Value | 3,465,000 | 14,690,000 |
Total, Gross Unrealized Losses | (12,000) | (271,000) |
US States and Political Subdivisions Debt Securities [Member] | Tax Exempt [Member] | ||
Less than Twelve Months, Fair Value | 608,000 | 1,268,000 |
Less than Twelve Months, Gross Unrealized Losses | 0 | (9,000) |
Twelve Months or Greater, Fair Value | 0 | 9,394,000 |
Twelve Months or Greater, Gross Unrealized Losses | (5,000) | (166,000) |
Total, Fair Value | 608,000 | 10,662,000 |
Total, Gross Unrealized Losses | (5,000) | (175,000) |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Less than Twelve Months, Fair Value | 0 | 8,725,000 |
Less than Twelve Months, Gross Unrealized Losses | 0 | (86,000) |
Twelve Months or Greater, Fair Value | 4,709,000 | 6,685,000 |
Twelve Months or Greater, Gross Unrealized Losses | (44,000) | (186,000) |
Total, Fair Value | 4,709,000 | 15,410,000 |
Total, Gross Unrealized Losses | (44,000) | (272,000) |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Less than Twelve Months, Fair Value | 75,000 | |
Less than Twelve Months, Gross Unrealized Losses | 0 | |
Twelve Months or Greater, Fair Value | 0 | |
Twelve Months or Greater, Gross Unrealized Losses | 0 | |
Total, Fair Value | 75,000 | |
Total, Gross Unrealized Losses | 0 | |
Less than Twelve Months, Fair Value | 2,683,000 | 13,811,000 |
Less than Twelve Months, Gross Unrealized Losses | 0 | (152,000) |
Twelve Months or Greater, Fair Value | 6,174,000 | 26,951,000 |
Twelve Months or Greater, Gross Unrealized Losses | (61,000) | (566,000) |
Total, Fair Value | 8,857,000 | 40,762,000 |
Total, Gross Unrealized Losses | $ (61,000) | $ (718,000) |
Note 7 - Loans and Related Al41
Note 7 - Loans and Related Allowance for Loan and Lease Losses (Details Textual) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Threshold For Loans Evaluated For Impairment [Member] | Outside Consultant [Member] | |
Loans and Leases Receivable before Fees, Gross | $ 250,000 |
Threshold For Loans Evaluated For Impairment [Member] | Criticized Relationships [Member] | |
Financing Receivable, Gross | 125,000 |
Threshold For Loans Evaluated For Impairment [Member] | |
Loans and Leases Receivable before Fees, Gross | $ 1,000,000 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 1 |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 270,000 |
Note 7 - Loans and Related Al42
Note 7 - Loans and Related Allowance for Loan and Lease Losses - Major Classifications of Net Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Commercial And Industrial [Member] | ||||||
Financing Receivable Gross | $ 59,376 | $ 42,536 | ||||
Less: Allowance for loan and lease losses | 513 | $ 484 | 867 | $ 578 | $ 610 | $ 642 |
Real Estate Construction Porfolio Segment [Member] | ||||||
Financing Receivable Gross | 17,633 | 22,137 | ||||
Less: Allowance for loan and lease losses | 138 | 159 | 276 | 334 | 363 | 868 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||||
Financing Receivable Gross | 258,952 | 232,478 | ||||
Less: Allowance for loan and lease losses | 2,761 | 2,788 | 3,139 | 3,426 | 3,347 | 3,703 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||||||
Financing Receivable Gross | 245,636 | 231,701 | ||||
Less: Allowance for loan and lease losses | 2,895 | 2,909 | 2,078 | 1,939 | 1,978 | 1,576 |
Consumer Portfolio Segment [Member] | ||||||
Financing Receivable Gross | 4,732 | 4,858 | ||||
Less: Allowance for loan and lease losses | 27 | 26 | 25 | 43 | 48 | 57 |
Financing Receivable Gross | 586,329 | 533,710 | ||||
Less: Allowance for loan and lease losses | 6,334 | $ 6,366 | 6,385 | $ 6,320 | $ 6,346 | $ 6,846 |
Net loans | $ 579,995 | $ 527,325 |
Note 7 - Loans and Realted Allo
Note 7 - Loans and Realted Allowance for Loan and Lease Losses - Primary Segments of the Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Commercial And Industrial [Member] | ||
Individually evaluated for impairment | $ 844 | $ 1,808 |
Collectively evaluated for impairment | 58,532 | 40,728 |
Total loans | 59,376 | 42,536 |
Real Estate Construction Porfolio Segment [Member] | ||
Individually evaluated for impairment | 1,093 | 1,787 |
Collectively evaluated for impairment | 16,540 | 20,350 |
Total loans | 17,633 | 22,137 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Individually evaluated for impairment | 3,238 | 3,881 |
Collectively evaluated for impairment | 255,714 | 228,597 |
Total loans | 258,952 | 232,478 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Individually evaluated for impairment | 6,466 | 6,199 |
Collectively evaluated for impairment | 239,170 | 225,502 |
Total loans | 245,636 | 231,701 |
Consumer Portfolio Segment [Member] | ||
Individually evaluated for impairment | 5 | 6 |
Collectively evaluated for impairment | 4,727 | 4,852 |
Total loans | 4,732 | 4,858 |
Individually evaluated for impairment | 11,646 | 13,681 |
Collectively evaluated for impairment | 574,683 | 520,029 |
Total loans | $ 586,329 | $ 533,710 |
Note 7 - Loans and Related Al44
Note 7 - Loans and Related Allowance of Loan and Lease Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
Commercial And Industrial [Member] | ||||||
Individually evaluated for impairment | $ 184 | $ 388 | ||||
Collectively evaluated for impairment | 329 | 479 | ||||
Total ending allowance balance | $ 513 | $ 578 | $ 513 | $ 642 | 513 | 867 |
ALLL balance, period start | 484 | 610 | 867 | 642 | ||
Charge-offs | (74) | (100) | (197) | (196) | ||
Recoveries | 4 | 5 | 51 | 186 | ||
Provision | 99 | 63 | (208) | (54) | ||
ALLL balance, period end | 513 | 578 | 513 | 578 | ||
Real Estate Construction Porfolio Segment [Member] | ||||||
Individually evaluated for impairment | 17 | 130 | ||||
Collectively evaluated for impairment | 121 | 146 | ||||
Total ending allowance balance | 138 | 334 | 138 | 868 | 138 | 276 |
ALLL balance, period start | 159 | 363 | 276 | 868 | ||
Charge-offs | (385) | |||||
Recoveries | ||||||
Provision | (21) | (29) | (138) | (149) | ||
ALLL balance, period end | 138 | 334 | 138 | 334 | ||
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||||
Individually evaluated for impairment | 104 | 276 | ||||
Collectively evaluated for impairment | 2,657 | 2,863 | ||||
Total ending allowance balance | 2,761 | 3,426 | 2,761 | 3,703 | 2,761 | 3,139 |
ALLL balance, period start | 2,788 | 3,347 | 3,139 | 3,703 | ||
Charge-offs | (149) | (124) | (394) | (425) | ||
Recoveries | 82 | 81 | 113 | 161 | ||
Provision | 40 | 122 | (97) | (13) | ||
ALLL balance, period end | 2,761 | 3,426 | 2,761 | 3,426 | ||
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||||||
Individually evaluated for impairment | 239 | 39 | ||||
Collectively evaluated for impairment | 2,656 | 2,039 | ||||
Total ending allowance balance | 2,895 | 1,939 | 2,895 | 1,576 | 2,895 | 2,078 |
ALLL balance, period start | 2,909 | 1,978 | 2,078 | 1,576 | ||
Charge-offs | (5) | (70) | (92) | |||
Recoveries | 5 | 140 | 5 | |||
Provision | (14) | (39) | 747 | 450 | ||
ALLL balance, period end | 2,895 | 1,939 | 2,895 | 1,939 | ||
Consumer Portfolio Segment [Member] | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 27 | 25 | ||||
Total ending allowance balance | 27 | 43 | 27 | 57 | 27 | 25 |
ALLL balance, period start | 26 | 48 | 25 | 57 | ||
Charge-offs | (3) | (18) | (11) | |||
Recoveries | 3 | 7 | 9 | 21 | ||
Provision | 1 | (12) | 11 | (24) | ||
ALLL balance, period end | 27 | 43 | 27 | 43 | ||
Individually evaluated for impairment | 544 | 833 | ||||
Collectively evaluated for impairment | 5,790 | 5,552 | ||||
Total ending allowance balance | 6,334 | 6,320 | 6,334 | 6,846 | $ 6,334 | $ 6,385 |
ALLL balance, period start | 6,366 | 6,346 | 6,385 | 6,846 | ||
Charge-offs | (226) | (229) | (679) | (1,109) | ||
Recoveries | 89 | 98 | 313 | 373 | ||
Provision | 105 | 105 | 315 | 210 | ||
ALLL balance, period end | $ 6,334 | $ 6,320 | $ 6,334 | $ 6,320 |
Note 7 - Loans and Related Al45
Note 7 - Loans and Related Allowance for Loan and Lease Losses - Impaired Loans by Class (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Commercial And Industrial [Member] | ||
Recorded investment, with no related allowance | $ 569 | $ 1,027 |
Unpaid principal balance, with no related allowance | 569 | 1,025 |
Recorded investment, with related allowance | 275 | 781 |
Unpaid principal balance, with related allowance | 275 | 781 |
Related allowance | 184 | 388 |
Recorded investment | 844 | 1,808 |
Unpaid principal balance | 844 | 1,806 |
Real Estate Construction Porfolio Segment [Member] | Residential Loan [Member] | ||
Recorded investment, with related allowance | 464 | |
Unpaid principal balance, with related allowance | 462 | |
Related allowance | 104 | |
Real Estate Construction Porfolio Segment [Member] | ||
Recorded investment, with no related allowance | 1,076 | 1,657 |
Unpaid principal balance, with no related allowance | 1,076 | 1,651 |
Recorded investment, with related allowance | 17 | 130 |
Unpaid principal balance, with related allowance | 17 | 130 |
Related allowance | 17 | 130 |
Recorded investment | 1,093 | 1,787 |
Unpaid principal balance | 1,093 | 1,781 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Recorded investment, with no related allowance | 2,774 | 2,445 |
Unpaid principal balance, with no related allowance | 2,771 | 2,443 |
Recorded investment, with related allowance | 1,436 | |
Unpaid principal balance, with related allowance | 1,436 | |
Related allowance | 104 | 276 |
Recorded investment | 3,238 | 3,881 |
Unpaid principal balance | 3,233 | 3,879 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Recorded investment, with no related allowance | 1,378 | 2,337 |
Unpaid principal balance, with no related allowance | 1,375 | 2,335 |
Recorded investment, with related allowance | 3,862 | |
Unpaid principal balance, with related allowance | 3,846 | |
Related allowance | 239 | 39 |
Recorded investment | 6,466 | 6,199 |
Unpaid principal balance | 6,453 | 6,181 |
Consumer Portfolio Segment [Member] | ||
Recorded investment, with no related allowance | 5 | 6 |
Unpaid principal balance, with no related allowance | 5 | 6 |
Recorded investment, with related allowance | ||
Unpaid principal balance, with related allowance | ||
Related allowance | ||
Recorded investment | 5 | 6 |
Unpaid principal balance | 5 | 6 |
Commercial Loans [Member] | ||
Recorded investment, with related allowance | 5,088 | |
Unpaid principal balance, with related allowance | 5,078 | |
Related allowance | 239 | |
Recorded investment, with no related allowance | 5,797 | 7,466 |
Unpaid principal balance, with no related allowance | 5,791 | 7,454 |
Recorded investment, with related allowance | 5,849 | 6,215 |
Unpaid principal balance, with related allowance | 5,837 | 6,199 |
Related allowance | 544 | 833 |
Recorded investment | 11,646 | 13,681 |
Unpaid principal balance | $ 11,628 | $ 13,653 |
Note 7 - Loans and Related Al46
Note 7 - Loans and Related Allowance for Loan and Lease Losses - Additional Information on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Commercial And Industrial [Member] | ||||
Average Recorded Investment | $ 864 | $ 1,480 | $ 1,218 | $ 1,354 |
Interest Income Recognized | 4 | 21 | 9 | 73 |
Real Estate Construction Porfolio Segment [Member] | ||||
Average Recorded Investment | 1,105 | 2,347 | 1,404 | 2,614 |
Interest Income Recognized | 3 | 28 | 22 | 94 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||
Average Recorded Investment | 3,389 | 4,195 | 3,660 | 4,514 |
Interest Income Recognized | 43 | 36 | 128 | |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||||
Average Recorded Investment | 7,939 | 5,476 | 7,449 | 4,871 |
Interest Income Recognized | 8 | 71 | 115 | 200 |
Consumer Portfolio Segment [Member] | ||||
Average Recorded Investment | 5 | 6 | 6 | 6 |
Interest Income Recognized | ||||
Average Recorded Investment | 13,302 | 13,504 | 13,737 | 13,359 |
Interest Income Recognized | $ 15 | $ 163 | $ 182 | $ 495 |
Note 7 - Loans and Related Al47
Note 7 - Loans and Related Allowance for Loan and Lease Losses - Classes of the Loan Portfolio Summarized by Credit Quality (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Pass [Member] | Commercial And Industrial [Member] | ||
Loans, total | $ 57,954 | $ 40,560 |
Pass [Member] | Real Estate Construction Porfolio Segment [Member] | ||
Loans, total | 17,448 | 22,007 |
Pass [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, total | 252,783 | 225,945 |
Pass [Member] | Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, total | 237,916 | 219,331 |
Pass [Member] | Consumer Portfolio Segment [Member] | ||
Loans, total | 4,723 | 4,854 |
Pass [Member] | ||
Loans, total | 540,188 | 512,697 |
Special Mention [Member] | Commercial And Industrial [Member] | ||
Loans, total | 445 | 242 |
Special Mention [Member] | Real Estate Construction Porfolio Segment [Member] | ||
Loans, total | 144 | |
Special Mention [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, total | 433 | 728 |
Special Mention [Member] | Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, total | 3,141 | 4,327 |
Special Mention [Member] | ||
Loans, total | 4,163 | 5,297 |
Substandard [Member] | Commercial And Industrial [Member] | ||
Loans, total | 977 | 1,734 |
Substandard [Member] | Real Estate Construction Porfolio Segment [Member] | ||
Loans, total | 24 | |
Substandard [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, total | 5,376 | 5,805 |
Substandard [Member] | Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, total | 4,579 | 8,043 |
Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Loans, total | 9 | 4 |
Substandard [Member] | ||
Loans, total | 11,325 | 15,586 |
Doubtful [Member] | Commercial And Industrial [Member] | ||
Loans, total | ||
Doubtful [Member] | Real Estate Construction Porfolio Segment [Member] | ||
Loans, total | 17 | 130 |
Doubtful [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, total | ||
Doubtful [Member] | Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, total | ||
Doubtful [Member] | ||
Loans, total | 17 | 130 |
Commercial And Industrial [Member] | ||
Loans, total | 59,376 | 42,536 |
Real Estate Construction Porfolio Segment [Member] | ||
Loans, total | 17,633 | 22,137 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, total | 258,952 | 232,478 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, total | 245,636 | 231,701 |
Consumer Portfolio Segment [Member] | ||
Loans, total | 4,732 | 4,858 |
Loans, total | $ 586,329 | $ 533,710 |
Note 7 - Loans and Related Al48
Note 7 - Loans and Related Allowance for Loan and Lease Losses - Past Due Financing Receivables (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Commercial And Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans, past due | $ 59,000 | $ 225,000 |
Commercial And Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 92,000 | 26,000 |
Commercial And Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans, past due | 336,000 | 741,000 |
Commercial And Industrial [Member] | ||
Loans, current balance | 58,889,000 | 41,544,000 |
Loans, past due | 487,000 | 992,000 |
Loans, total | 59,376,000 | 42,536,000 |
Real Estate Construction Porfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 0 | 0 |
Real Estate Construction Porfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 0 | 0 |
Real Estate Construction Porfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans, past due | 0 | 0 |
Real Estate Construction Porfolio Segment [Member] | ||
Loans, current balance | 17,633,000 | 22,137,000 |
Loans, past due | 0 | 0 |
Loans, total | 17,633,000 | 22,137,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Loan [Member] | ||
Loans, past due | 1,052,000 | 1,482,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Loans [Member] | ||
Loans, past due | 121,000 | 189,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Loan [Member] | ||
Loans, past due | 547,000 | 92,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Loans [Member] | ||
Loans, past due | ||
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Loan [Member] | ||
Loans, past due | 285,000 | 1,179,000 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Loans [Member] | ||
Loans, past due | 744,000 | 609,000 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, current balance | 257,068,000 | 229,725,000 |
Loans, past due | 1,884,000 | 2,753,000 |
Loans, total | 258,952,000 | 232,478,000 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, current balance | 244,771,000 | 230,903,000 |
Loans, past due | 865,000 | 798,000 |
Loans, total | 245,636,000 | 231,701,000 |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 76,000 | 16,000 |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 3,000 | |
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans, past due | 2,000 | |
Consumer Portfolio Segment [Member] | ||
Loans, current balance | 4,656,000 | 4,837,000 |
Loans, past due | 76,000 | 21,000 |
Loans, total | 4,732,000 | 4,858,000 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 1,308,000 | 1,912,000 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 639,000 | 121,000 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans, past due | 1,365,000 | 2,531,000 |
Loans, current balance | 583,017,000 | 529,146,000 |
Loans, past due | 3,312,000 | 4,564,000 |
Loans, total | $ 586,329,000 | $ 533,710,000 |
Note 7 - Loans and Relaed Allow
Note 7 - Loans and Relaed Allowance for Loan and Lease Losses - Classes of the Loan Portfolio Summarized by Nonaccrual Loans and Still Accruing (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Commercial And Industrial [Member] | ||
Loans, nonacrrual status | $ 920,000 | $ 1,450,000 |
Loans, 90+ days past due and accruing | 0 | 0 |
Real Estate Construction Porfolio Segment [Member] | ||
Loans, nonacrrual status | 17,000 | 130,000 |
Loans, 90+ days past due and accruing | 0 | 0 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, nonacrrual status | 3,822,000 | 4,122,000 |
Loans, 90+ days past due and accruing | 0 | 0 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, nonacrrual status | 1,730,000 | 1,842,000 |
Loans, 90+ days past due and accruing | 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Loans, nonacrrual status | 0 | 1,000 |
Loans, 90+ days past due and accruing | 0 | 2,000 |
Loans, nonacrrual status | 6,490,000 | 7,545,000 |
Loans, 90+ days past due and accruing | $ 0 | $ 2,000 |
Note 7 - Loans and Related Al50
Note 7 - Loans and Related Allowance for Loan and Lease Losses - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Extended Maturity [Member] | Commercial And Industrial [Member] | |||
Number of contracts | 2 | 2 | 3 |
Extended Maturity [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | |||
Number of contracts | 1 | 1 | 2 |
Extended Maturity [Member] | Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | |||
Number of contracts | 1 | ||
Extended Maturity [Member] | Real Estate Construction Porfolio Segment [Member] | |||
Number of contracts | 1 | ||
Extended Maturity [Member] | Consumer Portfolio Segment [Member] | |||
Number of contracts | 1 | 1 | |
Other Restructurings [Member] | Commercial And Industrial [Member] | |||
Number of contracts | 1 | ||
Other Restructurings [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | |||
Number of contracts | 1 | ||
Other Restructurings [Member] | Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | |||
Number of contracts | |||
Other Restructurings [Member] | Real Estate Construction Porfolio Segment [Member] | |||
Number of contracts | |||
Other Restructurings [Member] | Consumer Portfolio Segment [Member] | |||
Number of contracts | |||
Commercial And Industrial [Member] | |||
Number of contracts | 2 | 2 | 4 |
Pre-modification outstanding recorded investment | $ 15 | $ 169 | $ 126 |
Post-modification outstanding recorded investment | 15 | 169 | 126 |
Post-modification outstanding recorded investment | $ 15 | $ 169 | $ 126 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | |||
Number of contracts | 1 | 1 | 3 |
Pre-modification outstanding recorded investment | $ 164 | $ 58 | $ 398 |
Post-modification outstanding recorded investment | 164 | 58 | 418 |
Post-modification outstanding recorded investment | $ 164 | $ 58 | $ 418 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | |||
Number of contracts | 1 | ||
Pre-modification outstanding recorded investment | $ 311 | ||
Post-modification outstanding recorded investment | 311 | ||
Post-modification outstanding recorded investment | $ 311 | ||
Real Estate Construction Porfolio Segment [Member] | |||
Number of contracts | 1 | ||
Pre-modification outstanding recorded investment | $ 181 | ||
Post-modification outstanding recorded investment | |||
Post-modification outstanding recorded investment | |||
Consumer Portfolio Segment [Member] | |||
Number of contracts | 1 | 1 | |
Pre-modification outstanding recorded investment | $ 9 | $ 9 | |
Post-modification outstanding recorded investment | 9 | 9 | |
Post-modification outstanding recorded investment | $ 9 | $ 9 |
Note 7 - Loans and Related Al51
Note 7 - Loans and Related Allowance for Loan and Lease Losses - Troubled Debt Restructurings Subsequently Defaulted (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Extended Maturity [Member] | Commercial And Industrial [Member] | ||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 1 | |||
Extended Maturity [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 1 | |||
Other Restructurings [Member] | Commercial And Industrial [Member] | ||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 3,000 | |||
Other Restructurings [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 58,000 | |||
Commercial And Industrial [Member] | ||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 1 | 2 | 3 | |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 8,000 | $ 273,000 | $ 55 | |
Real Estate Construction Porfolio Segment [Member] | ||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 1 | 1 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 58,000 | $ 152 | ||
Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 1 | 1 | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 8,000 | $ 8 | ||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 1 | |||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 270,000 |
Note 8 - Other Real Estate Ow52
Note 8 - Other Real Estate Owned ("OREO") (Details Textual) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Real Estate Acquired Through Foreclosure | $ 1.2 | $ 1.4 |
Note 9 - Subsequent Event (Deta
Note 9 - Subsequent Event (Details Textual) - Merger of Liberty Bank, N.A. into The Middlefield Banking Company [member] - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | |
Dec. 31, 2016 | Jul. 28, 2016 | |
Scenario, Forecast [Member] | ||
Payments to Acquire Businesses, Gross | $ 1,147 | |
Liberty Bank, N.A. [Member] | ||
Business Combination, Merger Agreement, Special Dividend to Be Paid to Entity's Shareholders Before Merger | $ 3,000 | |
Business Combination, Merger Agreement, Percentage of Merger Consideration to Be Paid in Common Stock | 45.00% | |
Business Combination, Merger Agreement, Cash Per Share of Reporting Entity Common Stock | $ 37.96 | |
Business Combination, Merger Agreement, Ratio of Shares of Reporting Entity's Common Stock for Each Share of Acquired Entity's Common Stock | 1.1934 | |
Business Combination, Shares in Acquired Entity Owned Prior to Merger | 23,218 | |
Business Combination, Ownership Percentage in Acquired Entity Prior to Merger | 2.40% |