Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 14, 2017 | |
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) | 3,211,830 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheet (Cur
Consolidated Balance Sheet (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Cash and due from banks | $ 37,971 | $ 31,395 | |
Federal funds sold | 1,600 | 1,100 | |
Cash and cash equivalents | 39,571 | 32,495 | |
Investment securities available for sale, at fair value | 104,951 | 114,376 | |
Loans held for sale | 9,791 | 634 | |
Loans | 867,864 | 609,140 | |
Less allowance for loan and lease losses | 6,605 | 6,598 | |
Net loans | 861,259 | 602,542 | |
Premises and equipment, net | 11,511 | 11,203 | |
Goodwill | 15,435 | 4,559 | |
Core deposit intangibles | 2,948 | 36 | |
Bank-owned life insurance | 15,432 | 13,540 | |
Other real estate owned | 650 | 934 | |
Accrued interest and other assets | 9,528 | 7,502 | |
TOTAL ASSETS | 1,071,076 | 787,821 | |
LIABILITIES | |||
Noninterest-bearing demand | 172,199 | 133,630 | |
Interest-bearing demand | 87,084 | 59,560 | |
Money market | 160,858 | 74,940 | |
Savings | 181,259 | 172,370 | |
Time | 245,383 | 189,434 | |
Total deposits | 846,783 | 629,934 | |
Short-term borrowings | 63,388 | 68,359 | |
Other borrowings | 39,346 | 9,437 | |
Accrued interest and other liabilities | 4,357 | 3,131 | |
TOTAL LIABILITIES | 953,874 | 710,861 | |
STOCKHOLDERS' EQUITY | |||
Common stock, no par value; 10,000,000 shares authorized, 3,597,913 and 2,640,418 shares issued; 3,211,748 and 2,254,253 shares outstanding | 84,587 | 47,943 | |
Retained earnings | 44,318 | 41,334 | |
Accumulated other comprehensive income | [1] | 1,815 | 1,201 |
Treasury stock, at cost; 386,165 shares | (13,518) | (13,518) | |
TOTAL STOCKHOLDERS' EQUITY | 117,202 | 76,960 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,071,076 | $ 787,821 | |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. |
Consolidated Balance Sheet (Cu3
Consolidated Balance Sheet (Current Period Unaudited) (Parentheticals) - $ / shares $ / shares in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
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) | 3,597,913 | 2,640,418 |
Common stock, shares outstanding (in shares) | 3,211,748 | 2,254,253 |
Treasury stock, shares (in shares) | 386,165 | 386,165 |
Consolidated Statement of Incom
Consolidated Statement of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
INTEREST AND DIVIDEND INCOME | ||||
Interest and fees on loans | $ 9,916 | $ 6,317 | $ 19,096 | $ 12,490 |
Interest-bearing deposits in other institutions | 92 | 15 | 141 | 27 |
Federal funds sold | 1 | 5 | 4 | 9 |
Investment securities: | ||||
Taxable interest | 223 | 290 | 441 | 630 |
Tax-exempt interest | 630 | 750 | 1,267 | 1,540 |
Dividends on stock | 40 | 28 | 152 | 57 |
Total interest and dividend income | 10,902 | 7,405 | 21,101 | 14,753 |
INTEREST EXPENSE | ||||
Deposits | 1,227 | 889 | 2,352 | 1,744 |
Short-term borrowings | 273 | 115 | 450 | 235 |
Other borrowings | 125 | 62 | 265 | 112 |
Total interest expense | 1,625 | 1,066 | 3,067 | 2,091 |
NET INTEREST INCOME | 9,277 | 6,339 | 18,034 | 12,662 |
Provision for loan losses | 170 | 105 | 335 | 210 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,107 | 6,234 | 17,699 | 12,452 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 449 | 491 | 918 | 938 |
Investment securities gains, net | 252 | 488 | 303 | |
Earnings on bank-owned life insurance | 98 | 97 | 207 | 196 |
Gain on sale of loans | 231 | 106 | 465 | 193 |
Other income | 211 | 227 | 422 | 452 |
Total noninterest income | 989 | 1,173 | 2,500 | 2,082 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 3,203 | 2,283 | 6,899 | 5,063 |
Occupancy expense | 433 | 292 | 921 | 627 |
Equipment expense | 266 | 210 | 547 | 479 |
Data processing costs | 588 | 322 | 908 | 594 |
Ohio state franchise tax | 186 | 162 | 372 | 262 |
Federal deposit insurance expense | 135 | 132 | 203 | 264 |
Professional fees | 423 | 218 | 796 | 510 |
Net loss on other real estate owned | 15 | 141 | 70 | 199 |
Advertising expense | 164 | 203 | 412 | 398 |
Directors fees | 128 | 121 | 240 | 228 |
Core deposit intangible amortization | 103 | 10 | 175 | 20 |
Appraiser fees | 104 | 119 | 206 | 220 |
ATM fees | 28 | 98 | 104 | 194 |
Merger expense | 307 | 694 | ||
Other expense | 621 | 604 | 1,424 | 1,195 |
Total noninterest expense | 6,704 | 4,915 | 13,971 | 10,253 |
Income before income taxes | 3,392 | 2,492 | 6,228 | 4,281 |
Income taxes | 885 | 566 | 1,621 | 868 |
NET INCOME | $ 2,507 | $ 1,926 | $ 4,607 | $ 3,413 |
EARNINGS PER SHARE | ||||
Basic (in dollars per share) | $ 0.84 | $ 0.94 | $ 1.62 | $ 1.74 |
Diluted (in dollars per share) | 0.83 | 0.94 | 1.61 | 1.73 |
DIVIDENDS DECLARED PER SHARE (in dollars per share) | $ 0.27 | $ 0.27 | $ 0.54 | $ 0.54 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |||
Net income | $ (2,507) | $ (1,926) | $ (4,607) | $ (3,413) | ||
Other comprehensive income: | ||||||
Net unrealized holding gain on available-for-sale securities | 1,186 | 2,006 | 1,417 | 2,553 | ||
Tax effect | (403) | (681) | (481) | (868) | ||
Reclassification adjustment for investment securities gain included in net income | (252) | (488) | (303) | |||
Tax effect | 86 | 166 | 103 | |||
Period change | 783 | [1] | 1,159 | [1] | 614 | 1,485 |
Comprehensive income | $ 3,290 | $ 3,085 | $ 5,221 | $ 4,898 | ||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders Equity (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2016 | $ 47,943 | $ 41,334 | $ 1,201 | $ (13,518) | $ 76,960 |
Net income | 4,607 | 4,607 | |||
Other comprehensive income | 614 | 614 | |||
Common stock issued in business combination (554,610 shares) | 20,995 | 20,995 | |||
Other common stock issuances, net of cost (396,957 shares) | 15,377 | 15,377 | |||
Dividend reinvestment and purchase plan (5,928 shares) | 272 | 272 | |||
Cash dividends ($0.54 per share) | (1,623) | (1,623) | |||
Balance at Jun. 30, 2017 | $ 84,587 | $ 44,318 | $ 1,815 | $ (13,518) | $ 117,202 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders Equity (Unaudited) (Parentheticals) | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Common Stock [Member] | |
Common stock Issued (in shares) | 554,610 |
Other Common stock issued (in shares) | 396,957 |
Dividend reinvestment and purchase plan shares (in shares) | 5,928 |
Retained Earnings [Member] | |
Cash dividend per share (in dollars per share) | $ / shares | $ 0.54 |
Cash dividend per share (in dollars per share) | $ / shares | $ 0.54 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net income | $ 4,607,000 | $ 3,413,000 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Provision for loan losses | 335,000 | 210,000 |
Investment securities gain, net | (488,000) | (303,000) |
Depreciation and amortization of premises and equipment, net | 535,000 | 443,000 |
Amortization of premium and discount on investment securities | 220,000 | 217,000 |
Accretion of deferred loan fees, net | (295,000) | (119,000) |
Core deposit intangible amortization | 175,000 | 20,000 |
Origination of loans held for sale | (10,035,000) | (8,227,000) |
Proceeds from sale of loans | 3,866,000 | 9,031,000 |
Gain on sale of loans | (148,000) | (193,000) |
Origination of student loans held for sale | (222,526,000) | |
Proceeds from sale of student loans | 225,956,000 | |
Gain on sale of student loans | (317,000) | |
Earnings on bank-owned life insurance | (207,000) | (196,000) |
Deferred income tax | (245,000) | 265,000 |
Net (gain) on other real estate owned | (158,000) | (68,000) |
Decrease in accrued interest receivable | 102,000 | 59,000 |
Increase (decrease) in accrued interest payable | 56,000 | (1,000) |
Other, net | (4,046,000) | 209,000 |
Net cash (used in) provided by operating activities | (2,613,000) | 4,760,000 |
INVESTING ACTIVITIES | ||
Proceeds from repayments and maturities | 7,364,000 | 12,189,000 |
Proceeds from sale of securities | 2,678,000 | 9,115,000 |
Purchases | (1,744,000) | |
Increase in loans, net | (64,390,000) | (46,483,000) |
Proceeds from the sale of other real estate owned | 1,463,000 | 557,000 |
Purchase of bank-owned life insurance | (4,000) | |
Purchase of premises and equipment | (518,000) | (306,000) |
Purchase of restricted stock | (899,000) | |
Redemption of restricted stock | 795,000 | |
Increase (decrease) in short-term borrowings, net | (4,971,000) | 6,430,000 |
Repayment of other borrowings | (91,000) | (114,000) |
Proceeds from other borrowings | 30,000,000 | |
Common stock issued | 15,377,000 | 11,229,000 |
Proceeds from dividend reinvestment and purchase plan | 272,000 | 255,000 |
Cash dividends | (1,623,000) | (1,104,000) |
Net cash provided by financing activities | 57,769,000 | 20,289,000 |
Increase (decrease) in cash and cash equivalents | 7,076,000 | (1,623,000) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 32,495,000 | 23,750,000 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 39,571,000 | 22,127,000 |
Interest on deposits and borrowings | 3,011 | 2,092 |
Income taxes | 3,555 | 475 |
Transfers from loans to other real estate owned | 1,021 | 367 |
Common stock issued in business acquisition | 20,995 | |
Liabilities assumed | ||
Acquisition, net of cash paid | 5,431,000 | |
Net cash used in investing activities | (48,080,000) | (26,672,000) |
FINANCING ACTIVITIES | ||
Net increase in deposits | $ 18,805,000 | 3,593,000 |
Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | ||
Non-cash assets acquired | ||
Loans | 195,388,000 | |
Loans held for sale | 5,953,000 | |
Premises and equipment, net | 325,000 | |
Accrued interest receivable | 440,000 | |
Bank-owned life insurance | 1,681,000 | |
Core deposit intangible | 3,087,000 | |
Deferred tax asset | (1,073,000) | |
Other assets | 997,000 | |
Goodwill | 10,876,000 | |
217,674,000 | ||
Liabilities assumed | ||
Time deposits | (30,744,000) | |
Deposits other than time deposits | (167,300,000) | |
Accrued interest payable | (47,000) | |
Other liabilities | (2,951,000) | |
(201,042,000) | ||
Liberty stock acquired in business combination | (1,068,000) | |
Net non-cash assets acquired | 15,564,000 | |
Acquisition, net of cash paid | $ 5,431,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 1 The consolidated financial statements of Middlefield Banc Corp. ("Company") include its bank subsidiary, The Middlefield Banking Company (“MBC”), and a nonbank asset resolution subsidiary EMORECO, Inc. All significant inter-company items have been eliminated. On January 12, 2017, $37.96 1.1934 544,610 $42.2 three February. The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles and the instructions for Form 10 10 X. December 31, 2016, not 10 December 31, 2016. not Recent Accounting Pronouncements – In May 2014, 2014 09, December 15, 2016, not not not 606. In August 2015, 2015 14, 606 2014 09 one not 2014 09 December 15, 2017, 2014 09 December 15, 2018, December 15, 2019. In January 2016, 2016 01, 825 10 not December 15, 2017, not 960 965 December 15, 2018, December 15, 2019. not may December 15, 2017, In February 2016, 2016 02, 842 one 12 not may December 15, 2018, December 15, 2019, December 15, 2020. may not 1 In March 2016, 2016 08, 606 606, not 606; 2014 09, 606 not 2014 09. 2015 14, 606 2014 09 one In April 2016, 2016 10, 606 606, not 606. 1 2 606, 2014 09, 606 not 606 2014 09 2015 14, 606 2014 09 one In May 2016, 2016 12, 606 606, 606. 2014 09, 606 not 606 2014 09 2015 14, 606 2014 09 one not In June 2016, 2016 13, 2016 13 December 15, 2019, December 15, 2018. first one first one In August 2016, 2016 15, 230 eight may December 15, 2017, December 15, 2018, December 15, 2019. In October 2016, 2016 16, Income Taxes (Topic 740 December 15, 2017, December 15, 2018, December 15, 2019. not first In October 2016, 2016 18, 230 December 15, 2017, December 15, 2018, December 15, 2019. In January 2017, 2017 01, 805 not December 15, 2017, December 15, 2018, December 15, 2019. not In January 2017, 2017 04, 2 2, not December 15, 2019. not December 15, 2020. not December 15, 2021. not In March 2017, 2017 08, 310 20 not December 15, 2018. December 15, 2019, December 15, 2020. not In May 2017, 2017 09, Compensation – Stock Compensation (Topic 718 not not December 15, 2017. 1 not 2 not |
Note 2 - Stock-based Compensati
Note 2 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 2 The Company had no June 30, 2017 2016. Stock option activity during the six June 30 as follows: Weighted- Weighted- average average Exercise Exercise 2017 Price 2016 Price Outstanding, January 1 29,324 $ 23.67 31,949 $ 25.03 Exercised (7,949 ) 29.87 - - Outstanding, June 30 21,375 $ 26.91 31,949 $ 25.03 Exercisable, June 30 21,375 $ 26.91 31,949 $ 25.03 |
Note 3 - Earnings Per Share
Note 3 - Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 3 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 Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Weighted-average common shares outstanding 3,386,616 2,437,302 3,227,184 2,350,822 Average treasury stock shares (386,165 ) (386,165 ) (386,165 ) (386,165 ) Weighted-average common shares and common stock equivalents used to calculate basic earnings per share 3,000,451 2,051,137 2,841,019 1,964,657 Additional common stock equivalents (stock options) used to calculate diluted earnings per share 13,689 8,274 13,139 8,522 Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 3,014,140 2,059,411 2,854,158 1,973,179 Options to purchase 21,375 $ 17.55 $ 37.48 three six June 30, 2017. 21,375 three six no Options to purchase 31,949 $ 17.55 $ 40.24 three six June 30, 2016. 24,700 7,249 three six |
Note 4 - Fair Value Disclosure
Note 4 - Fair Value Disclosure Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE 4 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 not two 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. June 30, 2017 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a recurring basis: U.S. government agency securities $ - $ 9,514 $ - $ 9,514 Obligations of states and political subdivisions - 77,635 - 77,635 Mortgage-backed securities in government-sponsored entities - 17,512 - 17,512 Total debt securities - 104,661 - 104,661 Equity securities in financial institutions - 290 - 290 Total $ - $ 104,951 $ - $ 104,951 December 31, 2016 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a recurring basis: U.S. government agency securities $ - $ 10,236 $ - $ 10,236 Obligations of states and political subdivisions - 81,223 - 81,223 Mortgage-backed securities in government-sponsored entities - 20,069 - 20,069 Private-label mortgage-backed securities - 1,709 - 1,709 Total debt securities - 113,237 - 113,237 Equity securities in financial institutions - 1,139 - 1,139 Total $ - $ 114,376 $ - $ 114,376 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). The Company uses prices compiled by third 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 third may not not $767,000 June 30, 2017. Other Real Estate Owned (OREO) no not not may June 30, 2017 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a nonrecurring basis: Impaired loans $ - $ - $ 3,183 $ 3,183 Other real estate owned - - 88 88 December 31, 2016 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a nonrecurring basis: Impaired loans $ - $ - $ 6,498 $ 6,498 Other real estate owned - - 511 511 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) Range (Weighted Fair Value Estimate Valuation Techniques Unobservable Input Average) June 30, 2017 Impaired loans $ 3,183 Appraisal of collateral (1) Appraisal adjustments (2) 3.3% to 8.3% (5.1%) Other real estate owned $ 88 Appraisal of collateral (1) Appraisal adjustments (2) 0.0% to 10.0% Quantitative Information about Level III Fair Value Measurements (Dollar amounts in thousands) Range (Weighted Fair Value Estimate Valuation Techniques Unobservable Input Average) December 31, 2016 Impaired loans $ 4,928 Discounted cash flow Discount rate 3.1% to 7.0% (5.1%) 1,570 Appraisal of collateral (1) Appraisal adjustments (2) 0.0% to 59.7% (28.2%) Other real estate owned $ 511 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 10.0% ( 1 Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 not ( 2 Appraisals may The estimated fair value of the Company’s financial instruments is as follows: June 30, 2017 Carrying Total Value Level I Level II Level III Fair Value (Dollar amounts in thousands) Financial assets: Cash and cash equivalents $ 39,571 $ 39,571 $ - $ - $ 39,571 Investment securities Available for sale 104,951 104,951 - 104,951 Loans held for sale 9,791 8,476 1,315 - 9,791 Net loans 861,259 - - 874,014 874,014 Bank-owned life insurance 15,432 15,432 - - 15,432 Federal Home Loan Bank stock 3,589 3,589 - - 3,589 Accrued interest receivable 2,764 2,764 - - 2,764 Financial liabilities: Deposits $ 846,783 $ 601,400 $ - $ 246,121 $ 847,521 Short-term borrowings 63,388 63,388 - - 63,388 Other borrowings 39,346 - - 15,703 15,703 Accrued interest payable 498 498 - - 498 December 31, 2016 Carrying Total Value Level I Level II Level III Fair Value (Dollar amounts in thousands) Financial assets: Cash and cash equivalents $ 32,495 $ 32,495 $ - $ - $ 32,495 Investment securities Available for sale 114,376 - 114,376 - 114,376 Loans held for sale 634 - 634 - 634 Net loans 602,542 - - 604,447 604,447 Bank-owned life insurance 13,540 13,540 - - 13,540 Restricted stock 2,204 2,204 - - 2,204 Accrued interest receivable 2,246 2,426 - - 2,426 Financial liabilities: Deposits $ 629,934 $ 440,500 $ - $ 189,871 $ 630,371 Short-term borrowings 68,359 68,359 - - 68,359 Other borrowings 9,437 - 9,512 9,512 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 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 may not may As certain assets such as deferred tax assets and premises and equipment are not not The Company employed simulation modeling in determining the estimated fair value of financial instruments for which quoted market prices were not 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 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 not not |
Note 5 - Accumulated Other Comp
Note 5 - Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 5 The following tables present the changes in accumulated other comprehensive income by component net of tax for the three six June 30, 2017 2016, Unrealized gains on available-for-sale (Dollars in thousands) securities Balance as of December 31, 2016 $ 1,201 Other comprehensive income before reclassification 153 Amount reclassified from accumulated other comprehensive income (322 ) Period change (169 ) Balance at March 31, 2017 $ 1,032 Other comprehensive income before reclassification 783 Amount reclassified from accumulated other comprehensive income - Period change 783 Balance at June 30, 2017 $ 1,815 Unrealized gains on available-for-sale (Dollars in thousands) securities Balance as of December 31, 2015 $ 2,395 Other comprehensive income before reclassification 360 Amount reclassified from accumulated other comprehensive income (34 ) Period change 326 Balance at March 31, 2016 2,721 Other comprehensive loss before reclassification 1,325 Amount reclassified from accumulated other comprehensive income (166 ) Period change 1,159 Balance at June 30, 2016 $ 3,880 (a) All amounts are net of tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. The following tables present significant amounts reclassified out of each component of accumulated other comprehensive income for the three six June 30, 2017 2016, 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 June 30, 2017 June 30, 2016 Presented Unrealized gains on available-for-sale securities - $ 252 Investment securities gains, net - (86 ) Income taxes - $ 166 Amount Reclassified from Accumulated Other Comprehensive Affected Line Item in Income (a) the Statement Where (Dollars in thousands) For the Six Months Ended Net Income is Details about other comprehensive income June 30, 2017 June 30, 2016 Presented Unrealized gains on available-for-sale securities $ 488 $ 303 Investment securities gains, net (166 ) (103 ) Income taxes $ 322 $ 200 (a) Amounts in parentheses indicate debits to net income |
Note 6 - Investment Securities
Note 6 - Investment Securities Available for Sale | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 6 The amortized cost and fair values of securities available for sale are as follows: June 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair (Dollar amounts in thousands) Cost Gains Losses Value U.S. government agency securities $ 9,383 $ 180 $ (49 ) $ 9,514 Obligations of states and political subdivisions: Taxable 1,613 149 (2 ) 1,760 Tax-exempt 73,582 2,333 (40 ) 75,875 Mortgage-backed securities in government-sponsored entities 17,455 192 (135 ) 17,512 Total debt securities 102,033 2,854 (226 ) 104,661 Equity securities in financial institutions 170 120 - 290 Total $ 102,203 $ 2,974 $ (226 ) $ 104,951 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. government agency securities $ 10,158 $ 174 $ (96 ) $ 10,236 Obligations of states and political subdivisions: Taxable 1,615 129 (4 ) 1,740 Tax-exempt 78,327 1,678 (522 ) 79,483 Mortgage-backed securities in government-sponsored entities 20,128 202 (261 ) 20,069 Private-label mortgage-backed securities 1,579 130 - 1,709 Total debt securities 111,807 2,313 (883 ) 113,237 Equity securities in financial institutions 750 389 - 1,139 Total $ 112,557 $ 2,702 $ (883 ) $ 114,376 The amortized cost and fair value of debt securities at June 30, 2017, may Amortized Fair (Dollar amounts in thousands) Cost Value Due in one year or less $ 3,607 $ 3,652 Due after one year through five years 10,229 10,615 Due after five years through ten years 11,699 12,073 Due after ten years 76,498 78,321 Total $ 102,033 $ 104,661 Proceeds from the sales of securities available for sale and the gross realized gains and losses for the three six June 30 (Dollar amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Proceeds from sales $ 2,678 $ 7,793 $ 2,678 $ 9,115 Gross realized gains - 255 488 306 Gross realized losses - (3 ) - (3 ) Investment securities with an approximate carrying value of $59.3 $60.3 June 30, 2017 December 31, 2016, $4.5 June 30, 2017 Prior to the acquisition of Liberty Bank, N.A., the Company had a previously held equity interest in Liberty which was re-measured at fair value on the acquisition date and resulted in a gain of $488,000, six June 30, 2017. 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. June 30, 2017 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 $ 3,055 $ (17 ) $ 1,260 $ (32 ) $ 4,315 $ (49 ) Obligations of states and political subdivisions Taxable 505 (2 ) - - 505 (2 ) Tax-exempt 4,574 (40 ) 311 - 4,885 (40 ) Mortgage-backed securities in government-sponsored entities 7,431 (37 ) 4,148 (98 ) 11,579 (135 ) Total $ 15,565 $ (96 ) $ 5,719 $ (130 ) $ 21,284 $ (226 ) December 31, 2016 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 $ 3,803 $ (47 ) $ 1,316 $ (49 ) $ 5,119 $ (96 ) Obligations of states and political subdivisions Taxable 502 (4 ) - - 502 (4 ) Tax-exempt 23,554 (522 ) - - 23,554 (522 ) Mortgage-backed securities in government-sponsored entities 9,066 (126 ) 4,438 (135 ) 13,504 (261 ) Total $ 36,925 $ (699 ) $ 5,754 $ (184 ) $ 42,679 $ (883 ) There were 27 June 30, 2017. 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 not 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 not” not Debt securities issued by U.S. government agencies, U.S. government-sponsored enterprises, and state and political subdivisions accounted for 100% June 30, 2017 no • 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 six June 30, 2017 2016, no not June 30, 2017 December 31, 2016 not |
Note 7 - Loans and Related Allo
Note 7 - Loans and Related Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2017 | |
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): June 30, December 31, 2017 2016 Commercial and industrial $ 97,160 $ 60,630 Real estate - construction 35,571 23,709 Real estate - mortgage: Residential 308,519 270,830 Commercial 406,670 249,490 Consumer installment 19,944 4,481 867,864 609,140 Less: Allowance for loan and lease losses 6,605 6,598 Net loans $ 861,259 $ 602,542 The amounts above include deferred loan origination costs of $1.9 $1.7 June 30, 2017 December 31, 2016, 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. The Northeastern Ohio trade area includes the newly acquired Liberty locations in Beachwood, Twinsburg, and Solon, 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 June 30, 2017 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Loans: Individually evaluated for impairment $ 3,084 $ 541 $ 3,170 $ 10,209 $ 4 $ 17,008 Collectively evaluated for impairment 94,076 35,030 305,349 396,461 19,940 850,856 Total loans $ 97,160 $ 35,571 $ 308,519 $ 406,670 $ 19,944 $ 867,864 Real estate- Mortgage December 31, 2016 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Loans: Individually evaluated for impairment $ 1,190 $ 913 $ 3,135 $ 7,187 $ 5 $ 12,430 Collectively evaluated for impairment 59,440 22,796 267,695 242,303 4,476 596,710 Total loans $ 60,630 $ 23,709 $ 270,830 $ 249,490 $ 4,481 $ 609,140 Real Estate- Mortgage June 30, 2017 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 $ 335 $ - $ 190 $ 1,207 $ - $ 1,732 Collectively evaluated for impairment 278 202 1,577 2,805 11 4,873 Total ending allowance balance $ 613 $ 202 $ 1,767 $ 4,012 $ 11 $ 6,605 Real Estate- Mortgage December 31, 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 $ 90 $ - $ 251 $ 186 $ - $ 527 Collectively evaluated for impairment 358 172 2,567 2,949 25 6,071 Total ending allowance balance $ 448 $ 172 $ 2,818 $ 3,135 $ 25 $ 6,598 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 increase in the allowance for loan loss for C&I, Real Estate Construction, and CRE loan portfolios were partially offset by a decreases in the allowance for the Residential and Consumer Installment 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 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 not 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 June 30, 2017 Impaired Loans Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Commercial and industrial $ 1,539 $ 1,535 $ - Real estate - construction 541 507 - Real estate - mortgage: Residential 2,073 2,059 - Commercial 3,071 3,045 - Consumer installment - - - Total $ 7,224 $ 7,146 $ - With an allowance recorded: Commercial and industrial $ 1,545 $ 1,538 $ 335 Real estate - construction - - - Real estate - mortgage: Residential 1,097 1,093 190 Commercial 7,138 7,092 1,207 Consumer installment 4 4 - Total $ 9,784 $ 9,727 $ 1,732 Total: Commercial and industrial $ 3,084 $ 3,073 $ 335 Real estate - construction 541 507 - Real estate - mortgage: Residential 3,170 3,152 190 Commercial 10,209 10,137 1,207 Consumer installment 4 4 - Total $ 17,008 $ 16,873 $ 1,732 December 31, 2016 Impaired Loans Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Commercial and industrial $ 319 $ 318 $ - Real estate - construction 913 909 - Real estate - mortgage: Residential 2,142 2,140 - Commercial 2,031 2,027 - Consumer installment - - - Total $ 5,405 $ 5,394 $ - With an allowance recorded: Commercial and industrial $ 871 $ 868 $ 90 Real estate - construction - - - Real estate - mortgage: Residential 993 991 251 Commercial 5,156 5,147 186 Consumer installment 5 5 - Total $ 7,025 $ 7,011 $ 527 Total: Commercial and industrial $ 1,190 $ 1,186 $ 90 Real estate - construction 913 909 - Real estate - mortgage: Residential 3,135 3,131 251 Commercial 7,187 7,174 186 Consumer installment 5 5 - Total $ 12,430 $ 12,405 $ 527 The tables above include troubled debt restructuring totaling $2.4 June 30, 2017 $6.7 December 31, 2016. The following tables present the average balance and interest income by class, recognized on impaired loans (in thousands): For the Three Months Ended June 30, 2017 For the Six Months Ended June 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 2,228 $ 57 $ 1,889 $ 141 Real estate - construction 676 1 877 1 Real estate - mortgage: Residential 3,131 28 3,264 50 Commercial 8,643 95 8,223 183 Consumer installment 5 - 5 - $ 14,683 $ 181 $ 14,258 $ 375 For the Three Months Ended June 30, 2016 For the Six Months Ended June 30, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 1,110 $ 12 $ 1,343 $ 25 Real estate - construction 1,368 24 1,508 49 Real estate - mortgage: Residential 3,761 37 3,801 73 Commercial 8,565 125 7,775 248 Consumer installment 6 - 6 - $ 14,810 $ 198 $ 14,433 $ 395 Management uses a nine first five not not not 90 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 $250,000 $125,000. 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 June 30, 2017 Commercial and industrial $ 90,595 $ 2,373 $ 4,192 $ - $ 97,160 Real estate - construction 35,548 - 23 - 35,571 Real estate - mortgage: Residential 302,243 908 5,368 - 308,519 Commercial 393,854 4,795 8,021 - 406,670 Consumer installment 19,710 - 234 - 19,944 Total $ 841,950 $ 8,076 $ 17,838 $ - $ 867,864 Special Total December 31, 2016 Pass Mention Substandard Doubtful Loans Commercial and industrial $ 58,539 $ 663 $ 1,428 $ - $ 60,630 Real estate - construction 23,541 144 24 - 23,709 Real estate - mortgage: Residential 264,481 428 5,921 - 270,830 Commercial 240,678 4,422 4,390 - 249,490 Consumer installment 4,467 - 14 - 4,481 Total $ 591,706 $ 5,657 $ 11,777 $ - $ 609,140 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 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 June 30, 2017 Commercial and industrial $ 96,613 $ 451 $ 59 $ 37 $ 547 $ 97,160 Real estate - construction 35,571 - - - - 35,571 Real estate - mortgage: Residential 305,929 1,229 438 923 2,590 308,519 Commercial 405,145 1,069 - 456 1,525 406,670 Consumer installment 19,927 9 8 - 17 19,944 Total $ 863,185 $ 2,758 $ 505 $ 1,416 $ 4,679 $ 867,864 30-59 Days 60-89 Days 90 Days+ Total Total Current Past Due Past Due Past Due Past Due Loans December 31, 2016 Commercial and industrial $ 60,407 $ 17 $ 2 $ 204 $ 223 $ 60,630 Real estate - construction 23,709 - - - - 23,709 Real estate - mortgage: Residential 268,041 1,909 207 673 2,789 270,830 Commercial 249,081 92 - 317 409 249,490 Consumer installment 4,465 - 10 6 16 4,481 Total $ 605,703 $ 2,018 $ 219 $ 1,200 $ 3,437 $ 609,140 The following tables present the classes of the loan portfolio summarized by nonaccrual loans (in thousands): June 30, 2017 90+ Days Past Nonaccrual Due and Accruing Commercial and industrial $ 1,222 $ - Real estate - construction - - Real estate - mortgage: Residential 3,839 199 Commercial 5,152 - Total $ 10,213 $ 199 December 31, 2016 90+ Days Past Nonaccrual Due and Accruing Commercial and industrial $ 454 $ - Real estate - construction - - Real estate - mortgage: Residential 4,034 - Commercial 1,409 - Consumer installment 6 - Total $ 5,903 $ - Interest income that would have been recorded had these loans not $278,400 six June 30, 2017 $309,000 December 31, 2016. 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 35 450 20 two may 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. The historical charge-off factor was calculated using the last twelve 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, 2016 $ 448 $ 172 $ 2,818 $ 3,135 $ 25 $ 6,598 Charge-offs (435 ) - (74 ) (19 ) (154 ) (682 ) Recoveries 144 22 14 - 174 354 Provision 456 8 (991 ) 896 (34 ) 335 ALLL balance at June 30, 2017 $ 613 $ 202 $ 1,767 $ 4,012 $ 11 $ 6,605 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 (123 ) - (244 ) (70 ) (15 ) (452 ) Recoveries 47 - 31 140 5 223 Provision (307 ) (117 ) (138 ) 761 11 210 ALLL balance at June 30, 2016 $ 484 $ 159 $ 2,788 $ 2,909 $ 26 $ 6,366 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at March 31, 2017 $ 616 $ 186 $ 2,523 $ 3,378 $ 17 $ 6,720 Charge-offs (415 ) - (7 ) - (52 ) (474 ) Recoveries 65 6 7 - 111 189 Provision 347 10 (756 ) 634 (65 ) 170 ALLL balance at June 30, 2017 $ 613 $ 202 $ 1,767 $ 4,012 $ 11 $ 6,605 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer i nstallment Total ALLL balance at March 31, 2016 $ 583 $ 247 $ 2,716 $ 2,783 $ 28 $ 6,357 Charge-offs (3 ) - (202 ) (70 ) - (275 ) Recoveries 9 - 28 140 2 179 Provision (105 ) (88 ) 246 56 (4 ) 105 ALLL balance at June 30, 2016 $ 484 $ 159 $ 2,788 $ 2,909 $ 26 $ 6,366 The following tables summarize troubled debt restructurings (in thousands): For the Three Months Ended June 30, 2017 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial - 1 1 $ 904 $ 905 Residential real estate 1 - 1 7 7 For the Six Months Ended June 30, 2017 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial 1 1 2 $ 954 $ 955 Residential real estate 2 - 2 10 10 For the Three Months Ended June 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 1 - 1 $ 3 $ 3 Residential real estate 1 - 1 58 58 Commercial real estate 1 - 1 311 311 For the Six Months Ended June 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 One $33,000, three March 31, 2017. June 30, 2017. no three six June 30, 2017. One $ 270,000 three six June 30, 2016. |
Note 8 - Other Real Estate Owne
Note 8 - Other Real Estate Owned ("OREO") | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 December 31, 2016, $650,000 $934,000 June 30, 2017, no |
Note 9 - Business Acquisition
Note 9 - Business Acquisition | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 9 In the second 2016, 100% The transaction closed on January 12, 2017, Under the terms of the merger agreement, the Company acquired all of the outstanding shares of Liberty for a total purchase price of $42.2 544,610 $21.2 $38.55 January 12, 2017. $488,000, six June 30, 2017. The acquired assets and assumed liabilities were measured at estimated fair values. The Company relied on the income approach to estimate the value of the loans. The loans’ underlying characteristics (account types, remaining terms (in months), annual interest rates or coupons, interest types, past delinquencies, timing of principal and interest payments, current market rates, loan-to-value ratios, loss exposures and remaining balance) were considered. Various assumptions were applied regarding credit, interest, and prepayment risks for the loans based on loan types, payment types and fixed or variable classifications. The Company also recorded an identifiable intangible asset representing the core deposit base of Liberty Bank. The discounted cash flow method was used in valuing this intangible. This method is based upon the principle of future benefits; economic value is based on anticipated future benefits as measured by cash flows expected to occur in the future. The estimated future cash flows are converted to a value indicator by determining the present value of the cash flows using a discount rate. The discount rate is based upon the nature of the business, the level of risk, and the expected stability of the estimated future cash flows. The higher the risk, the higher the discount rate, and the lower the value indicator. Time deposit fair values were estimated using an income approach. The methodology entailed discounting the contractual cash flows of the instruments over their remaining contractual lives at prevailing market rates. Interest and principal payments were projected for each category of CDs over the period from the valuation date to the maturity dates. These payments represent future cash flows to be paid to depositors until maturity. Using appropriate market interest rates for each category of CDs, the future cash flows were discounted to their present value equivalents. The market interest rates were selected based on peer rates in Ohio from Bankrate as of the valuation date. The following table summarizes the purchase of Liberty Bank as of January 12, 2017: (In Thousands, Except Per Share Data) Purchase Price Consideration in Common Stock Middlefield Banc Corp. shares issued 544,610 Value assigned to Middlefield Banc Corp. common share $ 38.55 Purchase price assigned to Liberty Bank common shares exchanged for Middlefield Banc Corp. shares 20,995 Purchase Price Consideration in Cash Purchase price assigned to Liberty Bank common shares exchanged for cash 21,173 Total Purchase Price 42,168 Previously held equity interest in Liberty Bank 1,068 Net Assets Acquired: Liberty Bank shareholders equity $ 30,277 Adjustments to reflect assets acquired at fair value: Loans Allowance for loan loss 3,257 Core deposit intangible 3,087 Loans - interest rate 578 Loans - general credit (2,161 ) Deferred tax asset (1,073 ) Other 254 Adjustments to reflect liabilities acquired at fair value: Time deposits (141 ) Change in control (1,718 ) 32,360 Goodwill resulting from merger $ 10,876 The following condensed statement reflects the amounts recognized as of the acquisition date for each major class of asset acquired and liability assumed, at fair value: (In Thousands) Total purchase price $ 42,168 Previously held equity interest in Liberty Bank 1,068 Assets (liabilities) acquired: Net assets acquired: Cash 26,604 Loans and loans held for sale 201,341 Premises and equipment, net 325 Accrued interest receivable 440 Bank-owned life insurance 1,681 Core deposit intangible 3,087 Deferred tax asset (1,073 ) Other assets 997 Time deposits (30,744 ) Non-time deposits (167,300 ) Accrued interest payable (47 ) Other liabilities (2,951 ) 32,360 Goodwill resulting from the Liberty Bank merger $ 10,876 Middlefield recorded goodwill and intangibles associated with the purchase of Liberty Bank totaling $10,876,000. not not six June 30, 2017. June 30, 2017 $211,000 Identifiable intangibles are amortized to their estimated residual values over the expected useful lives. Such lives are also periodically reassessed to determine if any amortization period adjustments are required. During the six June 30, 2017, no June 30, 2017 $2,932,000 $155,000 As of June 30, 2017, Remaining 2017 187 2018 348 2019 341 2020 332 2021 321 2022 309 2023 296 2024 281 2025 264 2026 253 2,932 Results of operations for Liberty prior to the acquisition date are not three six June 30, 2017. June 30, 2017 Actual from Acquisition Date Through June 30, 2017 Actual Second Quarter 2017 (in thousands) (in thousands) Net interest income $ 5,244 $ 2,509 Noninterest income 525 234 Net income $ 1,302 $ 1,204 The table below presents unaudited pro forma information as if the acquisition of Liberty Bank had occurred on January 1, 2016 January 1, 2017. not not Pro Formas Pro Formas Six-month period ended June 30, Three-month period ended June 30, 2017 2016 2017 2016 (in thousands, except per share data) (in thousands, except per share data) Net interest income $ 18,630 $ 17,198 $ 9,575 $ 8,868 Noninterest income 2,622 2,695 1,050 1,538 Net income $ 2,573 $ 4,513 $ 1,490 $ 2,691 Pro forma earnings per share: Basic $ 0.91 $ 2.30 $ 0.52 $ 1.37 Diluted $ 0.90 $ 2.29 $ 0.52 $ 1.36 Included in the above net income amount for June 30, 2017 $467,000 |
Note 10 - Subsequent Event
Note 10 - Subsequent Event | 6 Months Ended |
Jun. 30, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 10 – SUBSEQUENT EVENTS Management has evaluated subsequent events through August 14, 2017, no June 30, 2017. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements – In May 2014, 2014 09, December 15, 2016, not not not 606. In August 2015, 2015 14, 606 2014 09 one not 2014 09 December 15, 2017, 2014 09 December 15, 2018, December 15, 2019. In January 2016, 2016 01, 825 10 not December 15, 2017, not 960 965 December 15, 2018, December 15, 2019. not may December 15, 2017, In February 2016, 2016 02, 842 one 12 not may December 15, 2018, December 15, 2019, December 15, 2020. may not 1 In March 2016, 2016 08, 606 606, not 606; 2014 09, 606 not 2014 09. 2015 14, 606 2014 09 one In April 2016, 2016 10, 606 606, not 606. 1 2 606, 2014 09, 606 not 606 2014 09 2015 14, 606 2014 09 one In May 2016, 2016 12, 606 606, 606. 2014 09, 606 not 606 2014 09 2015 14, 606 2014 09 one not In June 2016, 2016 13, 2016 13 December 15, 2019, December 15, 2018. first one first one In August 2016, 2016 15, 230 eight may December 15, 2017, December 15, 2018, December 15, 2019. In October 2016, 2016 16, Income Taxes (Topic 740 December 15, 2017, December 15, 2018, December 15, 2019. not first In October 2016, 2016 18, 230 December 15, 2017, December 15, 2018, December 15, 2019. In January 2017, 2017 01, 805 not December 15, 2017, December 15, 2018, December 15, 2019. not In January 2017, 2017 04, 2 2, not December 15, 2019. not December 15, 2020. not December 15, 2021. not In March 2017, 2017 08, 310 20 not December 15, 2018. December 15, 2019, December 15, 2020. not In May 2017, 2017 09, Compensation – Stock Compensation (Topic 718 not not December 15, 2017. 1 not 2 not |
Note 2 - Stock-based Compensa20
Note 2 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Weighted- Weighted- average average Exercise Exercise 2017 Price 2016 Price Outstanding, January 1 29,324 $ 23.67 31,949 $ 25.03 Exercised (7,949 ) 29.87 - - Outstanding, June 30 21,375 $ 26.91 31,949 $ 25.03 Exercisable, June 30 21,375 $ 26.91 31,949 $ 25.03 |
Note 3 - Earnings Per Share (Ta
Note 3 - Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | For the Three For the Six Months Ended Months Ended June 30, June 30, 2017 2016 2017 2016 Weighted-average common shares outstanding 3,386,616 2,437,302 3,227,184 2,350,822 Average treasury stock shares (386,165 ) (386,165 ) (386,165 ) (386,165 ) Weighted-average common shares and common stock equivalents used to calculate basic earnings per share 3,000,451 2,051,137 2,841,019 1,964,657 Additional common stock equivalents (stock options) used to calculate diluted earnings per share 13,689 8,274 13,139 8,522 Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 3,014,140 2,059,411 2,854,158 1,973,179 |
Note 4 - Fair Value Disclosur22
Note 4 - Fair Value Disclosure Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | June 30, 2017 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a recurring basis: U.S. government agency securities $ - $ 9,514 $ - $ 9,514 Obligations of states and political subdivisions - 77,635 - 77,635 Mortgage-backed securities in government-sponsored entities - 17,512 - 17,512 Total debt securities - 104,661 - 104,661 Equity securities in financial institutions - 290 - 290 Total $ - $ 104,951 $ - $ 104,951 December 31, 2016 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a recurring basis: U.S. government agency securities $ - $ 10,236 $ - $ 10,236 Obligations of states and political subdivisions - 81,223 - 81,223 Mortgage-backed securities in government-sponsored entities - 20,069 - 20,069 Private-label mortgage-backed securities - 1,709 - 1,709 Total debt securities - 113,237 - 113,237 Equity securities in financial institutions - 1,139 - 1,139 Total $ - $ 114,376 $ - $ 114,376 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | June 30, 2017 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a nonrecurring basis: Impaired loans $ - $ - $ 3,183 $ 3,183 Other real estate owned - - 88 88 December 31, 2016 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a nonrecurring basis: Impaired loans $ - $ - $ 6,498 $ 6,498 Other real estate owned - - 511 511 |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | Quantitative Information about Level III Fair Value Measurements (Dollar amounts in thousands) Range (Weighted Fair Value Estimate Valuation Techniques Unobservable Input Average) June 30, 2017 Impaired loans $ 3,183 Appraisal of collateral (1) Appraisal adjustments (2) 3.3% to 8.3% (5.1%) Other real estate owned $ 88 Appraisal of collateral (1) Appraisal adjustments (2) 0.0% to 10.0% Quantitative Information about Level III Fair Value Measurements (Dollar amounts in thousands) Range (Weighted Fair Value Estimate Valuation Techniques Unobservable Input Average) December 31, 2016 Impaired loans $ 4,928 Discounted cash flow Discount rate 3.1% to 7.0% (5.1%) 1,570 Appraisal of collateral (1) Appraisal adjustments (2) 0.0% to 59.7% (28.2%) Other real estate owned $ 511 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 10.0% |
Fair Value, by Balance Sheet Grouping [Table Text Block] | June 30, 2017 Carrying Total Value Level I Level II Level III Fair Value (Dollar amounts in thousands) Financial assets: Cash and cash equivalents $ 39,571 $ 39,571 $ - $ - $ 39,571 Investment securities Available for sale 104,951 104,951 - 104,951 Loans held for sale 9,791 8,476 1,315 - 9,791 Net loans 861,259 - - 874,014 874,014 Bank-owned life insurance 15,432 15,432 - - 15,432 Federal Home Loan Bank stock 3,589 3,589 - - 3,589 Accrued interest receivable 2,764 2,764 - - 2,764 Financial liabilities: Deposits $ 846,783 $ 601,400 $ - $ 246,121 $ 847,521 Short-term borrowings 63,388 63,388 - - 63,388 Other borrowings 39,346 - - 15,703 15,703 Accrued interest payable 498 498 - - 498 December 31, 2016 Carrying Total Value Level I Level II Level III Fair Value (Dollar amounts in thousands) Financial assets: Cash and cash equivalents $ 32,495 $ 32,495 $ - $ - $ 32,495 Investment securities Available for sale 114,376 - 114,376 - 114,376 Loans held for sale 634 - 634 - 634 Net loans 602,542 - - 604,447 604,447 Bank-owned life insurance 13,540 13,540 - - 13,540 Restricted stock 2,204 2,204 - - 2,204 Accrued interest receivable 2,246 2,426 - - 2,426 Financial liabilities: Deposits $ 629,934 $ 440,500 $ - $ 189,871 $ 630,371 Short-term borrowings 68,359 68,359 - - 68,359 Other borrowings 9,437 - 9,512 9,512 Accrued interest payable 395 395 - - 395 |
Note 5 - Accumulated Other Co23
Note 5 - Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2016 $ 1,201 Other comprehensive income before reclassification 153 Amount reclassified from accumulated other comprehensive income (322 ) Period change (169 ) Balance at March 31, 2017 $ 1,032 Other comprehensive income before reclassification 783 Amount reclassified from accumulated other comprehensive income - Period change 783 Balance at June 30, 2017 $ 1,815 Unrealized gains on available-for-sale (Dollars in thousands) securities Balance as of December 31, 2015 $ 2,395 Other comprehensive income before reclassification 360 Amount reclassified from accumulated other comprehensive income (34 ) Period change 326 Balance at March 31, 2016 2,721 Other comprehensive loss before reclassification 1,325 Amount reclassified from accumulated other comprehensive income (166 ) Period change 1,159 Balance at June 30, 2016 $ 3,880 |
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 June 30, 2017 June 30, 2016 Presented Unrealized gains on available-for-sale securities - $ 252 Investment securities gains, net - (86 ) Income taxes - $ 166 Amount Reclassified from Accumulated Other Comprehensive Affected Line Item in Income (a) the Statement Where (Dollars in thousands) For the Six Months Ended Net Income is Details about other comprehensive income June 30, 2017 June 30, 2016 Presented Unrealized gains on available-for-sale securities $ 488 $ 303 Investment securities gains, net (166 ) (103 ) Income taxes $ 322 $ 200 |
Note 6 - Investment Securitie24
Note 6 - Investment Securities Available for Sale (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | June 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair (Dollar amounts in thousands) Cost Gains Losses Value U.S. government agency securities $ 9,383 $ 180 $ (49 ) $ 9,514 Obligations of states and political subdivisions: Taxable 1,613 149 (2 ) 1,760 Tax-exempt 73,582 2,333 (40 ) 75,875 Mortgage-backed securities in government-sponsored entities 17,455 192 (135 ) 17,512 Total debt securities 102,033 2,854 (226 ) 104,661 Equity securities in financial institutions 170 120 - 290 Total $ 102,203 $ 2,974 $ (226 ) $ 104,951 December 31, 2016 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value U.S. government agency securities $ 10,158 $ 174 $ (96 ) $ 10,236 Obligations of states and political subdivisions: Taxable 1,615 129 (4 ) 1,740 Tax-exempt 78,327 1,678 (522 ) 79,483 Mortgage-backed securities in government-sponsored entities 20,128 202 (261 ) 20,069 Private-label mortgage-backed securities 1,579 130 - 1,709 Total debt securities 111,807 2,313 (883 ) 113,237 Equity securities in financial institutions 750 389 - 1,139 Total $ 112,557 $ 2,702 $ (883 ) $ 114,376 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Amortized Fair (Dollar amounts in thousands) Cost Value Due in one year or less $ 3,607 $ 3,652 Due after one year through five years 10,229 10,615 Due after five years through ten years 11,699 12,073 Due after ten years 76,498 78,321 Total $ 102,033 $ 104,661 |
Realized Gain (Loss) on Investments [Table Text Block] | (Dollar amounts in thousands) For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Proceeds from sales $ 2,678 $ 7,793 $ 2,678 $ 9,115 Gross realized gains - 255 488 306 Gross realized losses - (3 ) - (3 ) |
Schedule of Unrealized Loss on Investments [Table Text Block] | June 30, 2017 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 $ 3,055 $ (17 ) $ 1,260 $ (32 ) $ 4,315 $ (49 ) Obligations of states and political subdivisions Taxable 505 (2 ) - - 505 (2 ) Tax-exempt 4,574 (40 ) 311 - 4,885 (40 ) Mortgage-backed securities in government-sponsored entities 7,431 (37 ) 4,148 (98 ) 11,579 (135 ) Total $ 15,565 $ (96 ) $ 5,719 $ (130 ) $ 21,284 $ (226 ) December 31, 2016 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 $ 3,803 $ (47 ) $ 1,316 $ (49 ) $ 5,119 $ (96 ) Obligations of states and political subdivisions Taxable 502 (4 ) - - 502 (4 ) Tax-exempt 23,554 (522 ) - - 23,554 (522 ) Mortgage-backed securities in government-sponsored entities 9,066 (126 ) 4,438 (135 ) 13,504 (261 ) Total $ 36,925 $ (699 ) $ 5,754 $ (184 ) $ 42,679 $ (883 ) |
Note 7 - Loans and Related Al25
Note 7 - Loans and Related Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | June 30, December 31, 2017 2016 Commercial and industrial $ 97,160 $ 60,630 Real estate - construction 35,571 23,709 Real estate - mortgage: Residential 308,519 270,830 Commercial 406,670 249,490 Consumer installment 19,944 4,481 867,864 609,140 Less: Allowance for loan and lease losses 6,605 6,598 Net loans $ 861,259 $ 602,542 |
Schedule Of Financing Receivable By Segment [Table Text Block] | Real Estate- Mortgage June 30, 2017 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Loans: Individually evaluated for impairment $ 3,084 $ 541 $ 3,170 $ 10,209 $ 4 $ 17,008 Collectively evaluated for impairment 94,076 35,030 305,349 396,461 19,940 850,856 Total loans $ 97,160 $ 35,571 $ 308,519 $ 406,670 $ 19,944 $ 867,864 Real estate- Mortgage December 31, 2016 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Loans: Individually evaluated for impairment $ 1,190 $ 913 $ 3,135 $ 7,187 $ 5 $ 12,430 Collectively evaluated for impairment 59,440 22,796 267,695 242,303 4,476 596,710 Total loans $ 60,630 $ 23,709 $ 270,830 $ 249,490 $ 4,481 $ 609,140 Real Estate- Mortgage June 30, 2017 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 $ 335 $ - $ 190 $ 1,207 $ - $ 1,732 Collectively evaluated for impairment 278 202 1,577 2,805 11 4,873 Total ending allowance balance $ 613 $ 202 $ 1,767 $ 4,012 $ 11 $ 6,605 Real Estate- Mortgage December 31, 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 $ 90 $ - $ 251 $ 186 $ - $ 527 Collectively evaluated for impairment 358 172 2,567 2,949 25 6,071 Total ending allowance balance $ 448 $ 172 $ 2,818 $ 3,135 $ 25 $ 6,598 |
Impaired Financing Receivables [Table Text Block] | June 30, 2017 Impaired Loans Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Commercial and industrial $ 1,539 $ 1,535 $ - Real estate - construction 541 507 - Real estate - mortgage: Residential 2,073 2,059 - Commercial 3,071 3,045 - Consumer installment - - - Total $ 7,224 $ 7,146 $ - With an allowance recorded: Commercial and industrial $ 1,545 $ 1,538 $ 335 Real estate - construction - - - Real estate - mortgage: Residential 1,097 1,093 190 Commercial 7,138 7,092 1,207 Consumer installment 4 4 - Total $ 9,784 $ 9,727 $ 1,732 Total: Commercial and industrial $ 3,084 $ 3,073 $ 335 Real estate - construction 541 507 - Real estate - mortgage: Residential 3,170 3,152 190 Commercial 10,209 10,137 1,207 Consumer installment 4 4 - Total $ 17,008 $ 16,873 $ 1,732 December 31, 2016 Impaired Loans Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Commercial and industrial $ 319 $ 318 $ - Real estate - construction 913 909 - Real estate - mortgage: Residential 2,142 2,140 - Commercial 2,031 2,027 - Consumer installment - - - Total $ 5,405 $ 5,394 $ - With an allowance recorded: Commercial and industrial $ 871 $ 868 $ 90 Real estate - construction - - - Real estate - mortgage: Residential 993 991 251 Commercial 5,156 5,147 186 Consumer installment 5 5 - Total $ 7,025 $ 7,011 $ 527 Total: Commercial and industrial $ 1,190 $ 1,186 $ 90 Real estate - construction 913 909 - Real estate - mortgage: Residential 3,135 3,131 251 Commercial 7,187 7,174 186 Consumer installment 5 5 - Total $ 12,430 $ 12,405 $ 527 |
Schedule of Additional Information Related to Impaired Loans [Table Text Block] | For the Three Months Ended June 30, 2017 For the Six Months Ended June 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 2,228 $ 57 $ 1,889 $ 141 Real estate - construction 676 1 877 1 Real estate - mortgage: Residential 3,131 28 3,264 50 Commercial 8,643 95 8,223 183 Consumer installment 5 - 5 - $ 14,683 $ 181 $ 14,258 $ 375 For the Three Months Ended June 30, 2016 For the Six Months Ended June 30, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 1,110 $ 12 $ 1,343 $ 25 Real estate - construction 1,368 24 1,508 49 Real estate - mortgage: Residential 3,761 37 3,801 73 Commercial 8,565 125 7,775 248 Consumer installment 6 - 6 - $ 14,810 $ 198 $ 14,433 $ 395 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Special Total Pass Mention Substandard Doubtful Loans June 30, 2017 Commercial and industrial $ 90,595 $ 2,373 $ 4,192 $ - $ 97,160 Real estate - construction 35,548 - 23 - 35,571 Real estate - mortgage: Residential 302,243 908 5,368 - 308,519 Commercial 393,854 4,795 8,021 - 406,670 Consumer installment 19,710 - 234 - 19,944 Total $ 841,950 $ 8,076 $ 17,838 $ - $ 867,864 Special Total December 31, 2016 Pass Mention Substandard Doubtful Loans Commercial and industrial $ 58,539 $ 663 $ 1,428 $ - $ 60,630 Real estate - construction 23,541 144 24 - 23,709 Real estate - mortgage: Residential 264,481 428 5,921 - 270,830 Commercial 240,678 4,422 4,390 - 249,490 Consumer installment 4,467 - 14 - 4,481 Total $ 591,706 $ 5,657 $ 11,777 $ - $ 609,140 |
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 June 30, 2017 Commercial and industrial $ 96,613 $ 451 $ 59 $ 37 $ 547 $ 97,160 Real estate - construction 35,571 - - - - 35,571 Real estate - mortgage: Residential 305,929 1,229 438 923 2,590 308,519 Commercial 405,145 1,069 - 456 1,525 406,670 Consumer installment 19,927 9 8 - 17 19,944 Total $ 863,185 $ 2,758 $ 505 $ 1,416 $ 4,679 $ 867,864 30-59 Days 60-89 Days 90 Days+ Total Total Current Past Due Past Due Past Due Past Due Loans December 31, 2016 Commercial and industrial $ 60,407 $ 17 $ 2 $ 204 $ 223 $ 60,630 Real estate - construction 23,709 - - - - 23,709 Real estate - mortgage: Residential 268,041 1,909 207 673 2,789 270,830 Commercial 249,081 92 - 317 409 249,490 Consumer installment 4,465 - 10 6 16 4,481 Total $ 605,703 $ 2,018 $ 219 $ 1,200 $ 3,437 $ 609,140 |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | June 30, 2017 90+ Days Past Nonaccrual Due and Accruing Commercial and industrial $ 1,222 $ - Real estate - construction - - Real estate - mortgage: Residential 3,839 199 Commercial 5,152 - Total $ 10,213 $ 199 December 31, 2016 90+ Days Past Nonaccrual Due and Accruing Commercial and industrial $ 454 $ - Real estate - construction - - Real estate - mortgage: Residential 4,034 - Commercial 1,409 - Consumer installment 6 - Total $ 5,903 $ - |
Schedule of Credit Losses for Financing Receivables, Current [Table Text Block] | Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at December 31, 2016 $ 448 $ 172 $ 2,818 $ 3,135 $ 25 $ 6,598 Charge-offs (435 ) - (74 ) (19 ) (154 ) (682 ) Recoveries 144 22 14 - 174 354 Provision 456 8 (991 ) 896 (34 ) 335 ALLL balance at June 30, 2017 $ 613 $ 202 $ 1,767 $ 4,012 $ 11 $ 6,605 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 (123 ) - (244 ) (70 ) (15 ) (452 ) Recoveries 47 - 31 140 5 223 Provision (307 ) (117 ) (138 ) 761 11 210 ALLL balance at June 30, 2016 $ 484 $ 159 $ 2,788 $ 2,909 $ 26 $ 6,366 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at March 31, 2017 $ 616 $ 186 $ 2,523 $ 3,378 $ 17 $ 6,720 Charge-offs (415 ) - (7 ) - (52 ) (474 ) Recoveries 65 6 7 - 111 189 Provision 347 10 (756 ) 634 (65 ) 170 ALLL balance at June 30, 2017 $ 613 $ 202 $ 1,767 $ 4,012 $ 11 $ 6,605 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer i nstallment Total ALLL balance at March 31, 2016 $ 583 $ 247 $ 2,716 $ 2,783 $ 28 $ 6,357 Charge-offs (3 ) - (202 ) (70 ) - (275 ) Recoveries 9 - 28 140 2 179 Provision (105 ) (88 ) 246 56 (4 ) 105 ALLL balance at June 30, 2016 $ 484 $ 159 $ 2,788 $ 2,909 $ 26 $ 6,366 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | For the Three Months Ended June 30, 2017 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial - 1 1 $ 904 $ 905 Residential real estate 1 - 1 7 7 For the Six Months Ended June 30, 2017 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial 1 1 2 $ 954 $ 955 Residential real estate 2 - 2 10 10 For the Three Months Ended June 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 1 - 1 $ 3 $ 3 Residential real estate 1 - 1 58 58 Commercial real estate 1 - 1 311 311 For the Six Months Ended June 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 |
Note 9 - Business Acquisition (
Note 9 - Business Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | (In Thousands, Except Per Share Data) Purchase Price Consideration in Common Stock Middlefield Banc Corp. shares issued 544,610 Value assigned to Middlefield Banc Corp. common share $ 38.55 Purchase price assigned to Liberty Bank common shares exchanged for Middlefield Banc Corp. shares 20,995 Purchase Price Consideration in Cash Purchase price assigned to Liberty Bank common shares exchanged for cash 21,173 Total Purchase Price 42,168 Previously held equity interest in Liberty Bank 1,068 Net Assets Acquired: Liberty Bank shareholders equity $ 30,277 Adjustments to reflect assets acquired at fair value: Loans Allowance for loan loss 3,257 Core deposit intangible 3,087 Loans - interest rate 578 Loans - general credit (2,161 ) Deferred tax asset (1,073 ) Other 254 Adjustments to reflect liabilities acquired at fair value: Time deposits (141 ) Change in control (1,718 ) 32,360 Goodwill resulting from merger $ 10,876 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | (In Thousands) Total purchase price $ 42,168 Previously held equity interest in Liberty Bank 1,068 Assets (liabilities) acquired: Net assets acquired: Cash 26,604 Loans and loans held for sale 201,341 Premises and equipment, net 325 Accrued interest receivable 440 Bank-owned life insurance 1,681 Core deposit intangible 3,087 Deferred tax asset (1,073 ) Other assets 997 Time deposits (30,744 ) Non-time deposits (167,300 ) Accrued interest payable (47 ) Other liabilities (2,951 ) 32,360 Goodwill resulting from the Liberty Bank merger $ 10,876 |
Business Acquisition, Pro Forma Information [Table Text Block] | Actual from Acquisition Date Through June 30, 2017 Actual Second Quarter 2017 (in thousands) (in thousands) Net interest income $ 5,244 $ 2,509 Noninterest income 525 234 Net income $ 1,302 $ 1,204 Pro Formas Pro Formas Six-month period ended June 30, Three-month period ended June 30, 2017 2016 2017 2016 (in thousands, except per share data) (in thousands, except per share data) Net interest income $ 18,630 $ 17,198 $ 9,575 $ 8,868 Noninterest income 2,622 2,695 1,050 1,538 Net income $ 2,573 $ 4,513 $ 1,490 $ 2,691 Pro forma earnings per share: Basic $ 0.91 $ 2.30 $ 0.52 $ 1.37 Diluted $ 0.90 $ 2.29 $ 0.52 $ 1.36 |
Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Remaining 2017 187 2018 348 2019 341 2020 332 2021 321 2022 309 2023 296 2024 281 2025 264 2026 253 2,932 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] $ / shares in Units, $ in Thousands | Jan. 12, 2017USD ($)$ / sharesshares |
Business Combination, Merger Agreement, Cash Per Share of Reporting Entity Common Stock | $ / shares | $ 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 Acquisition, Equity Interest Issued or Issuable, Number of Shares | 544,610 |
Business Combination, Consideration Transferred | $ | $ 42,168 |
Note 2 - Stock-based Compensa28
Note 2 - Stock-based Compensation (Details Textual) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
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 Compensa29
Note 2 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Outstanding stock options weighted-average exercise price, January 1 (in dollars per share) | $ 23.67 | $ 25.03 |
Outstanding stock options, January 1 (in shares) | 29,324 | 31,949 |
Exercised stock options (in shares) | (7,949) | |
Exercised stock options weighted-average exercise price (in dollars per share) | $ 29.87 | |
Outstanding stock options, March 31 (in shares) | 21,375 | 31,949 |
Outstanding stock options weighted-average exercise price, March 31 (in dollars per share) | $ 26.91 | $ 25.03 |
Exercisable stock options weighted-average exercise price, March 31 (in dollars per share) | $ 26.91 | $ 25.03 |
Exercisable stock options, March 31 (in shares) | 21,375 | 31,949 |
Note 3 - Earnings Per Share (De
Note 3 - Earnings Per Share (Details Textual) - $ / shares | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | |
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 | $ 37.48 | $ 40.24 | $ 37.48 | $ 40.24 | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 13,689 | 8,274 | 13,139 | 8,522 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 21,375 | 31,949 | 21,375 | 31,949 | 29,324 | 31,949 | 31,949 |
Employee Stock Option [Member] | |||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 21,375 | 24,700 | 21,375 | 24,700 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 7,249 | 0 | 7,249 |
Note 3 - Earnings Per Share - S
Note 3 - Earnings Per Share - Shares Used in Calculation of Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Weighted-average common shares outstanding (in shares) | 3,386,616 | 2,437,302 | 3,227,184 | 2,350,822 |
Average treasury stock shares (in shares) | (386,165) | (386,165) | (386,165) | (386,165) |
Weighted-average common shares and common stock equivalents used to calculate basic earnings per share (in shares) | 3,000,451 | 2,051,137 | 2,841,019 | 1,964,657 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 13,689 | 8,274 | 13,139 | 8,522 |
Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share (in shares) | 3,014,140 | 2,059,411 | 2,854,158 | 1,973,179 |
Note 4 - Fair Value Disclosur32
Note 4 - Fair Value Disclosure Measurements (Details Textual) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Estimated Selling Costs of Impaired Loans | $ 767,000 |
Note 4 - Fair Value Disclosur33
Note 4 - Fair Value Disclosure Measurments - Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investment securities available for sale, at fair value | $ 104,951 | $ 114,376 |
US Government Agencies Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 9,514 | 10,236 |
US States and Political Subdivisions Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 77,635 | 81,223 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Investment securities available for sale, at fair value | 17,512 | 20,069 |
Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 104,661 | 113,237 |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Investment securities available for sale, at fair value | 1,709 | |
Equity Securities In Financial Institutions [Member] | ||
Investment securities available for sale, at fair value | 290 | 1,139 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Investment securities available for sale, at fair value | 104,951 | 114,376 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 9,514 | 10,236 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 77,635 | 81,223 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Investment securities available for sale, at fair value | 17,512 | 20,069 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 104,661 | 113,237 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Investment securities available for sale, at fair value | 1,709 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities In Financial Institutions [Member] | ||
Investment securities available for sale, at fair value | $ 290 | $ 1,139 |
Note 4 - Fair Value Disclosur34
Note 4 - Fair Value Disclosure Measurements - Assets Measured on a Nonrecurring Basis (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Other real estate owned | $ 650,000 | $ 934,000 |
Impaired loans | 17,008,000 | 12,430,000 |
Estimate of Fair Value Measurement [Member] | ||
Other real estate owned | 88,000 | 511,000 |
Impaired loans | 3,183,000 | 6,498,000 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Other real estate owned | 88,000 | 511,000 |
Impaired loans | $ 3,183,000 | $ 6,498,000 |
Note 4 - Fair Value Disclosur35
Note 4 - Fair Value Disclosure 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 | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | ||
Impaired Loans [Member] | Appraisal Adjustments [Member] | |||
Fair value estimate | $ 3,183 | $ 1,570 | |
Valuation Techniques / Unobservable Input | [1],[2] | Appraisal of collateral / Appraisal adjustments | Appraisal of collateral / appraisal adjustments |
Impaired Loans [Member] | Appraisal Adjustments [Member] | Minimum [Member] | |||
Discount rate | 3.30% | 0.00% | |
Impaired Loans [Member] | Appraisal Adjustments [Member] | Maximum [Member] | |||
Discount rate | 8.30% | 59.70% | |
Impaired Loans [Member] | Appraisal Adjustments [Member] | Weighted Average [Member] | |||
Discount rate | 5.10% | 28.20% | |
Impaired Loans [Member] | Income Approach Valuation Technique [Member] | |||
Fair value estimate | $ 4,928 | ||
Valuation Techniques / Unobservable Input | Discounted cash flow / discount rate | ||
Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Minimum [Member] | |||
Discount rate | 3.10% | ||
Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Maximum [Member] | |||
Discount rate | 7.00% | ||
Impaired Loans [Member] | Income Approach Valuation Technique [Member] | Weighted Average [Member] | |||
Discount rate | 5.10% | ||
Other Real Estate Owned [Member] | Appraisal Adjustments [Member] | |||
Fair value estimate | $ 88 | $ 511 | |
Valuation Techniques / Unobservable Input | [1],[2] | Appraisal of collateral / Appraisal adjustments | Appraisal of collateral / appraisal adjustments |
Other Real Estate Owned [Member] | Appraisal Adjustments [Member] | Minimum [Member] | |||
Discount rate | 0.00% | 0.00% | |
Other Real Estate Owned [Member] | Appraisal Adjustments [Member] | Weighted Average [Member] | |||
Discount rate | 10.00% | 10.00% | |
[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, less any associated allowance. |
Note 4 - Fair Value Disclosur36
Note 4 - Fair Value Disclosure Measurements - Estimated Fair Value of the Company's Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Investment securities available for sale, at fair value | $ 104,951 | $ 114,376 |
Investment securities available for sale, at fair value | 104,951 | 114,376 |
Reported Value Measurement [Member] | ||
Net loans | 861,259 | 602,542 |
Bank-owned life insurance | 15,432 | 13,540 |
Federal Home Loan Bank stock | 3,589 | 2,204 |
Accrued interest receivable | 2,764 | 2,246 |
Financial assets: | ||
Cash and cash equivalents | 39,571 | 32,495 |
Investment securities available for sale, at fair value | 104,951 | 114,376 |
Investment securities available for sale, at fair value | 104,951 | 114,376 |
Loans held for sale | 9,791 | 634 |
Financial liabilities: | ||
Accrued interest payable | 498 | 395 |
Deposits | 846,783 | 629,934 |
Short-term borrowings | 63,388 | 68,359 |
Other borrowings | 39,346 | 9,437 |
Estimate of Fair Value Measurement [Member] | ||
Net loans | 874,014 | 604,447 |
Bank-owned life insurance | 15,432 | 13,540 |
Federal Home Loan Bank stock | 3,589 | 2,204 |
Accrued interest receivable | 2,764 | 2,426 |
Financial assets: | ||
Cash and cash equivalents | 39,571 | 32,495 |
Investment securities available for sale, at fair value | 104,951 | 114,376 |
Investment securities available for sale, at fair value | 104,951 | 114,376 |
Loans held for sale | 9,791 | 634 |
Financial liabilities: | ||
Accrued interest payable | 498 | 395 |
Deposits | 847,521 | 630,371 |
Short-term borrowings | 63,388 | 68,359 |
Other borrowings | 15,703 | 9,512 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Net loans | ||
Bank-owned life insurance | 15,432 | 13,540 |
Federal Home Loan Bank stock | 3,589 | 2,204 |
Accrued interest receivable | 2,764 | 2,426 |
Financial assets: | ||
Cash and cash equivalents | 39,571 | 32,495 |
Investment securities available for sale, at fair value | ||
Investment securities available for sale, at fair value | ||
Loans held for sale | 8,476 | |
Financial liabilities: | ||
Accrued interest payable | 498 | 395 |
Deposits | 601,400 | 440,500 |
Short-term borrowings | 63,388 | 68,359 |
Other borrowings | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Net loans | ||
Bank-owned life insurance | ||
Federal Home Loan Bank stock | ||
Accrued interest receivable | ||
Financial assets: | ||
Cash and cash equivalents | ||
Investment securities available for sale, at fair value | 104,951 | 114,376 |
Investment securities available for sale, at fair value | 104,951 | 114,376 |
Loans held for sale | 1,315 | 634 |
Financial liabilities: | ||
Accrued interest payable | ||
Deposits | ||
Short-term borrowings | ||
Other borrowings | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Net loans | 874,014 | 604,447 |
Bank-owned life insurance | ||
Federal Home Loan Bank stock | ||
Accrued interest receivable | ||
Financial assets: | ||
Cash and cash equivalents | ||
Investment securities available for sale, at fair value | ||
Investment securities available for sale, at fair value | ||
Loans held for sale | ||
Financial liabilities: | ||
Accrued interest payable | ||
Deposits | 246,121 | 189,871 |
Short-term borrowings | ||
Other borrowings | $ 15,703 | $ 9,512 |
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 | 6 Months Ended | |||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||||||
Amount reclassified from accumulated other comprehensive income | [1] | $ (322) | $ (166) | $ (34) | |||||||
Period change | 783 | [1] | (169) | [1] | 1,159 | [1] | 326 | [1] | $ 614 | $ 1,485 | |
Balance | [1] | 1,815 | 1,032 | 3,880 | 2,721 | 1,815 | 3,880 | ||||
Balance | [1] | 1,032 | 1,201 | 2,721 | 2,395 | $ 1,201 | $ 2,395 | ||||
Other comprehensive income before reclassification | [1] | 783 | 153 | 1,325 | 360 | ||||||
Amount reclassified from accumulated other comprehensive income | [1] | $ (322) | $ (166) | $ (34) | |||||||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. |
Note 5 - Accumulated Other Co38
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 | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Unrealized gains on available-for-sale securities | [1] | $ 252 | $ 488 | $ 303 | |
Income taxes | [1] | (86) | (166) | (103) | |
Net of tax | [1] | $ 166 | $ 322 | $ 200 | |
[1] | Amounts in parentheses indicate debits to net income. |
Note 6 - Investment Securitie39
Note 6 - Investment Securities Available for Sale (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | |
Available-for-sale Securities Pledged as Collateral | $ 59,300,000 | $ 60,300,000 | ||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 27 | |||
Available-for-sale Securities, Percentage of Portfolio | 100.00% | |||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | $ 0 | $ 0 | ||
Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | ||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 488,000 | 488,000 | ||
Pledged to Secure Deposits and Other Purposes Required by Law [Member] | ||||
Restricted Cash | $ 4,500,000 |
Note 6 - Investment Securitie40
Note 6 - Investment Securities Available for Sale - Amortized Cost and Fair Values of Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Investment securities available for sale, at fair value | $ 104,951 | $ 114,376 |
Amortized cost | 102,203 | 112,557 |
Gross unrealized gains | 2,974 | 2,702 |
Gross unrealized losses | (226) | (883) |
Investment securities available for sale, at fair value | 104,951 | 114,376 |
US Government Agencies Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 9,514 | 10,236 |
Amortized cost | 9,383 | 10,158 |
Gross unrealized gains | 180 | 174 |
Gross unrealized losses | (49) | (96) |
Investment securities available for sale, at fair value | 9,514 | 10,236 |
US States and Political Subdivisions Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 77,635 | 81,223 |
Investment securities available for sale, at fair value | 77,635 | 81,223 |
US States and Political Subdivisions Debt Securities [Member] | Taxable [Member] | ||
Investment securities available for sale, at fair value | 1,760 | 1,740 |
Amortized cost | 1,613 | 1,615 |
Gross unrealized gains | 149 | 129 |
Gross unrealized losses | (2) | (4) |
Investment securities available for sale, at fair value | 1,760 | 1,740 |
US States and Political Subdivisions Debt Securities [Member] | Tax Exempt [Member] | ||
Investment securities available for sale, at fair value | 75,875 | 79,483 |
Amortized cost | 73,582 | 78,327 |
Gross unrealized gains | 2,333 | 1,678 |
Gross unrealized losses | (40) | (522) |
Investment securities available for sale, at fair value | 75,875 | 79,483 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Investment securities available for sale, at fair value | 17,512 | 20,069 |
Amortized cost | 17,455 | 20,128 |
Gross unrealized gains | 192 | 202 |
Gross unrealized losses | (135) | (261) |
Investment securities available for sale, at fair value | 17,512 | 20,069 |
Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 104,661 | 113,237 |
Amortized cost | 102,033 | 111,807 |
Gross unrealized gains | 2,854 | 2,313 |
Gross unrealized losses | (226) | (883) |
Investment securities available for sale, at fair value | 104,661 | 113,237 |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Investment securities available for sale, at fair value | 1,709 | |
Amortized cost | 1,579 | |
Gross unrealized gains | 130 | |
Gross unrealized losses | ||
Investment securities available for sale, at fair value | 1,709 | |
Equity Securities In Financial Institutions [Member] | ||
Investment securities available for sale, at fair value | 290 | 1,139 |
Amortized cost | 170 | 750 |
Gross unrealized gains | 120 | 389 |
Gross unrealized losses | ||
Investment securities available for sale, at fair value | $ 290 | $ 1,139 |
Note 6 - Investment Securitie41
Note 6 - Investment Securities Available for Sale - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Due in one year or less, amortized costs | $ 3,607 |
Due in one year or less, fair value | 3,652 |
Due after one year through five years, amortized costs | 10,229 |
Due after one year through five years, fair value | 10,615 |
Due after five years through ten years, amortized costs | 11,699 |
Due after five years through ten years, fair value | 12,073 |
Due after ten years, amortized costs | 76,498 |
Due after ten years, fair value | 78,321 |
Amortized costs | 102,033 |
Fair Value | $ 104,661 |
Note 6 - Investment Securitie42
Note 6 - Investment Securities Available for Sale - Sales of Available for Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Proceeds from sales | $ 2,678 | $ 7,793 | $ 2,678 | $ 9,115 |
Gross realized gains | 255 | 488 | 306 | |
Gross realized losses | $ (3) | $ (3) |
Note 6 - Investment Securitie43
Note 6 - Investment Securities Available for Sale - Gross Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Total, Fair Value | $ 21,284 | $ 42,679 |
Total, Gross Unrealized Losses | (226) | (883) |
Less than Twelve Months, Fair Value | 15,565 | 36,925 |
Less than Twelve Months, Gross Unrealized Losses | (96) | (699) |
Twelve Months or Greater, Fair Value | 5,719 | 5,754 |
Twelve Months or Greater, Gross Unrealized Losses | (130) | (184) |
US Government Agencies Debt Securities [Member] | ||
Total, Fair Value | 4,315 | 5,119 |
Total, Gross Unrealized Losses | (49) | (96) |
Less than Twelve Months, Fair Value | 3,055 | 3,803 |
Less than Twelve Months, Gross Unrealized Losses | (17) | (47) |
Twelve Months or Greater, Fair Value | 1,260 | 1,316 |
Twelve Months or Greater, Gross Unrealized Losses | (32) | (49) |
US States and Political Subdivisions Debt Securities [Member] | Taxable [Member] | ||
Total, Fair Value | 505 | 502 |
Total, Gross Unrealized Losses | (2) | (4) |
Less than Twelve Months, Fair Value | 505 | 502 |
Less than Twelve Months, Gross Unrealized Losses | (2) | (4) |
Twelve Months or Greater, Fair Value | ||
Twelve Months or Greater, Gross Unrealized Losses | ||
US States and Political Subdivisions Debt Securities [Member] | Tax Exempt [Member] | ||
Total, Fair Value | 4,885 | 23,554 |
Total, Gross Unrealized Losses | (40) | (522) |
Less than Twelve Months, Fair Value | 4,574 | 23,554 |
Less than Twelve Months, Gross Unrealized Losses | (40) | (522) |
Twelve Months or Greater, Fair Value | 311 | 0 |
Twelve Months or Greater, Gross Unrealized Losses | ||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Total, Fair Value | 11,579 | 13,504 |
Total, Gross Unrealized Losses | (135) | (261) |
Less than Twelve Months, Fair Value | 7,431 | 9,066 |
Less than Twelve Months, Gross Unrealized Losses | (37) | (126) |
Twelve Months or Greater, Fair Value | 4,148 | 4,438 |
Twelve Months or Greater, Gross Unrealized Losses | $ (98) | $ (135) |
Note 7 - Loans and Related Al44
Note 7 - Loans and Related Allowance for Loan Losses (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Loans and Leases Receivable, Deferred Income | $ 1,900,000 | $ 1,900,000 | $ 1,700,000 | |||
Financing Receivable, Modifications, Recorded Investment | $ 2,400,000 | 2,400,000 | 6,700,000 | |||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 33,000 | $ 270,000 | $ 270,000 | |||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | $ 278,400 | $ 309,000 | ||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 1 | 1 | 0 | 1 | |
Threshold For Loans Evaluated For Impairment [Member] | ||||||
Loans and Leases Receivable, before Fees, Gross | $ 1,000,000 | $ 1,000,000 | ||||
Threshold For Loans Evaluated For Impairment [Member] | Outside Consultant [Member] | ||||||
Loans and Leases Receivable, before Fees, Gross | 250,000 | 250,000 | ||||
Threshold For Loans Evaluated For Impairment [Member] | Criticized Relationships [Member] | ||||||
Financing Receivable, Gross | $ 125,000 | $ 125,000 |
Note 7 - Loans and Related Al45
Note 7 - Loans and Related Allowance for Loan Losses - Major Classifications of Net Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable Gross | $ 867,864 | $ 609,140 | ||||
Less: Allowance for loan and lease losses | 6,605 | $ 6,720 | 6,598 | $ 6,366 | $ 6,357 | $ 6,385 |
Net loans | 861,259 | 602,542 | ||||
Commercial And Industrial [Member] | ||||||
Financing Receivable Gross | 97,160 | 60,630 | ||||
Less: Allowance for loan and lease losses | 613 | 616 | 448 | 484 | 583 | 867 |
Real Estate Construction Porfolio Segment [Member] | ||||||
Financing Receivable Gross | 35,571 | 23,709 | ||||
Less: Allowance for loan and lease losses | 202 | 186 | 172 | 159 | 247 | 276 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||||
Financing Receivable Gross | 308,519 | 270,830 | ||||
Less: Allowance for loan and lease losses | 1,767 | 2,523 | 2,818 | 2,788 | 2,716 | 3,139 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||||||
Financing Receivable Gross | 406,670 | 249,490 | ||||
Less: Allowance for loan and lease losses | 4,012 | 3,378 | 3,135 | 2,909 | 2,783 | 2,078 |
Consumer Portfolio Segment [Member] | ||||||
Financing Receivable Gross | 19,944 | 4,481 | ||||
Less: Allowance for loan and lease losses | $ 11 | $ 17 | $ 25 | $ 26 | $ 28 | $ 25 |
Note 7 - Loans and Related Al46
Note 7 - Loans and Related Allowance for Loan Losses - Primary Segments of the Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Individually evaluated for impairment | $ 17,008 | $ 12,430 | ||||
Collectively evaluated for impairment | 850,856 | 596,710 | ||||
Total loans | 867,864 | 609,140 | ||||
Collectively evaluated for impairment | 4,873 | 6,071 | ||||
Total ending allowance balance | 6,605 | $ 6,720 | 6,598 | $ 6,366 | $ 6,357 | $ 6,385 |
Individually evaluated for impairment | 1,732 | 527 | ||||
Commercial And Industrial [Member] | ||||||
Individually evaluated for impairment | 3,084 | 1,190 | ||||
Collectively evaluated for impairment | 94,076 | 59,440 | ||||
Total loans | 97,160 | 60,630 | ||||
Collectively evaluated for impairment | 278 | 358 | ||||
Total ending allowance balance | 613 | 616 | 448 | 484 | 583 | 867 |
Individually evaluated for impairment | 335 | 90 | ||||
Real Estate Construction Porfolio Segment [Member] | ||||||
Individually evaluated for impairment | 541 | 913 | ||||
Collectively evaluated for impairment | 35,030 | 22,796 | ||||
Total loans | 35,571 | 23,709 | ||||
Collectively evaluated for impairment | 202 | 172 | ||||
Total ending allowance balance | 202 | 186 | 172 | 159 | 247 | 276 |
Individually evaluated for impairment | ||||||
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||||
Individually evaluated for impairment | 3,170 | 3,135 | ||||
Collectively evaluated for impairment | 305,349 | 267,695 | ||||
Total loans | 308,519 | 270,830 | ||||
Collectively evaluated for impairment | 1,577 | 2,567 | ||||
Total ending allowance balance | 1,767 | 2,523 | 2,818 | 2,788 | 2,716 | 3,139 |
Individually evaluated for impairment | 190 | 251 | ||||
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||||||
Individually evaluated for impairment | 10,209 | 7,187 | ||||
Collectively evaluated for impairment | 396,461 | 242,303 | ||||
Total loans | 406,670 | 249,490 | ||||
Collectively evaluated for impairment | 2,805 | 2,949 | ||||
Total ending allowance balance | 4,012 | 3,378 | 3,135 | 2,909 | 2,783 | 2,078 |
Individually evaluated for impairment | 1,207 | 186 | ||||
Consumer Portfolio Segment [Member] | ||||||
Individually evaluated for impairment | 4 | 5 | ||||
Collectively evaluated for impairment | 19,940 | 4,476 | ||||
Total loans | 19,944 | 4,481 | ||||
Collectively evaluated for impairment | 11 | 25 | ||||
Total ending allowance balance | 11 | $ 17 | 25 | $ 26 | $ 28 | $ 25 |
Individually evaluated for impairment |
Note 7 - Loans and Related Al47
Note 7 - Loans and Related Allowance for Loan Losses - Impaired Loans by Class (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Recorded investment | $ 17,008 | $ 12,430 |
Unpaid principal balance | 16,873 | 12,405 |
Recorded investment, with no related allowance | 7,224 | 5,405 |
Unpaid principal balance, with no related allowance | 7,146 | 5,394 |
Recorded investment, with related allowance | 9,784 | 7,025 |
Unpaid principal balance, with related allowance | 9,727 | 7,011 |
Related allowance | 1,732 | 527 |
Commercial Loans [Member] | ||
Recorded investment, with related allowance | 7,138 | |
Unpaid principal balance, with related allowance | 7,092 | |
Related allowance | 1,207 | |
Commercial And Industrial [Member] | ||
Recorded investment | 3,084 | 1,190 |
Unpaid principal balance | 3,073 | 1,186 |
Recorded investment, with no related allowance | 1,539 | 319 |
Unpaid principal balance, with no related allowance | 1,535 | 318 |
Recorded investment, with related allowance | 1,545 | 871 |
Unpaid principal balance, with related allowance | 1,538 | 868 |
Related allowance | 335 | 90 |
Real Estate Construction Porfolio Segment [Member] | ||
Recorded investment | 541 | 913 |
Unpaid principal balance | 507 | 909 |
Recorded investment, with no related allowance | 541 | 913 |
Unpaid principal balance, with no related allowance | 507 | 909 |
Recorded investment, with related allowance | ||
Unpaid principal balance, with related allowance | ||
Related allowance | ||
Real Estate Construction Porfolio Segment [Member] | Residential Loan [Member] | ||
Recorded investment, with related allowance | 1,097 | |
Unpaid principal balance, with related allowance | 1,093 | |
Related allowance | 190 | |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Recorded investment | 3,170 | 3,135 |
Unpaid principal balance | 3,152 | 3,131 |
Recorded investment, with no related allowance | 2,073 | 2,142 |
Unpaid principal balance, with no related allowance | 2,059 | 2,140 |
Recorded investment, with related allowance | 993 | |
Unpaid principal balance, with related allowance | 991 | |
Related allowance | 190 | 251 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Recorded investment | 10,209 | 7,187 |
Unpaid principal balance | 10,137 | 7,174 |
Recorded investment, with no related allowance | 3,071 | 2,031 |
Unpaid principal balance, with no related allowance | 3,045 | 2,027 |
Recorded investment, with related allowance | 5,156 | |
Unpaid principal balance, with related allowance | 5,147 | |
Related allowance | 1,207 | 186 |
Consumer Portfolio Segment [Member] | ||
Recorded investment | 4 | 5 |
Unpaid principal balance | 4 | 5 |
Recorded investment, with no related allowance | ||
Unpaid principal balance, with no related allowance | ||
Recorded investment, with related allowance | 5 | |
Unpaid principal balance, with related allowance | 5 | |
Related allowance |
Note 7 - Loans and Related Al48
Note 7 - Loans and Related Allowance for Loan Losses - Additional Information on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Average recorded investment | $ 14,683 | $ 14,810 | $ 14,258 | $ 14,433 |
Interest income recognized | 181 | 198 | 375 | 395 |
Commercial And Industrial [Member] | ||||
Average recorded investment | 2,228 | 1,110 | 1,889 | 1,343 |
Interest income recognized | 57 | 12 | 141 | 25 |
Real Estate Construction Porfolio Segment [Member] | ||||
Average recorded investment | 676 | 1,368 | 877 | 1,508 |
Interest income recognized | 1 | 24 | 1 | 49 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||
Average recorded investment | 3,131 | 3,761 | 3,264 | 3,801 |
Interest income recognized | 28 | 37 | 50 | 73 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||||
Average recorded investment | 8,643 | 8,565 | 8,223 | 7,775 |
Interest income recognized | 95 | 125 | 183 | 248 |
Consumer Portfolio Segment [Member] | ||||
Average recorded investment | 5 | 6 | 5 | 6 |
Interest income recognized |
Note 7 - Loans and Related Al49
Note 7 - Loans and Related Allowance for Loan Losses - Classes of the Loan Portfolio Summarized by Credit Quality (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Loans, total | $ 867,864 | $ 609,140 |
Commercial And Industrial [Member] | ||
Loans, total | 97,160 | 60,630 |
Real Estate Construction Porfolio Segment [Member] | ||
Loans, total | 35,571 | 23,709 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, total | 308,519 | 270,830 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, total | 406,670 | 249,490 |
Consumer Portfolio Segment [Member] | ||
Loans, total | 19,944 | 4,481 |
Pass [Member] | ||
Loans, total | 841,950 | 591,706 |
Pass [Member] | Commercial And Industrial [Member] | ||
Loans, total | 90,595 | 58,539 |
Pass [Member] | Real Estate Construction Porfolio Segment [Member] | ||
Loans, total | 35,548 | 23,541 |
Pass [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, total | 302,243 | 264,481 |
Pass [Member] | Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, total | 393,854 | 240,678 |
Pass [Member] | Consumer Portfolio Segment [Member] | ||
Loans, total | 19,710 | 4,467 |
Special Mention [Member] | ||
Loans, total | 8,076 | 5,657 |
Special Mention [Member] | Commercial And Industrial [Member] | ||
Loans, total | 2,373 | 663 |
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 | 908 | 428 |
Special Mention [Member] | Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, total | 4,795 | 4,422 |
Substandard [Member] | ||
Loans, total | 17,838 | 11,777 |
Substandard [Member] | Commercial And Industrial [Member] | ||
Loans, total | 4,192 | 1,428 |
Substandard [Member] | Real Estate Construction Porfolio Segment [Member] | ||
Loans, total | 23 | 24 |
Substandard [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, total | 5,368 | 5,921 |
Substandard [Member] | Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, total | 8,021 | 4,390 |
Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Loans, total | 234 | $ 14 |
Doubtful [Member] | ||
Loans, total | ||
Doubtful [Member] | Commercial And Industrial [Member] | ||
Loans, total | ||
Doubtful [Member] | Real Estate Construction Porfolio Segment [Member] | ||
Loans, total | ||
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 |
Note 7 - Loans and Related Al50
Note 7 - Loans and Related Allowance for Loan Losses - Past Due Financing Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Loans, past due | $ 4,679 | $ 3,437 |
Loans, total | 867,864 | 609,140 |
Loans, current balance | 863,185 | 605,703 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 2,758 | 2,018 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 505 | 219 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans, past due | 1,416 | 1,200 |
Commercial And Industrial [Member] | ||
Loans, past due | 547 | 223 |
Loans, total | 97,160 | 60,630 |
Loans, current balance | 96,613 | 60,407 |
Commercial And Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 451 | 17 |
Commercial And Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 59 | 2 |
Commercial And Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans, past due | 37 | 204 |
Real Estate Construction Porfolio Segment [Member] | ||
Loans, past due | 0 | 0 |
Loans, total | 35,571 | 23,709 |
Loans, current balance | 35,571 | 23,709 |
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 Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, past due | 2,590 | 2,789 |
Loans, total | 308,519 | 270,830 |
Loans, current balance | 305,929 | 268,041 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, past due | 1,525 | 409 |
Loans, total | 406,670 | 249,490 |
Loans, current balance | 405,145 | 249,081 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Loan [Member] | ||
Loans, past due | 1,229 | 1,909 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Loans [Member] | ||
Loans, past due | 1,069 | 92 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Loan [Member] | ||
Loans, past due | 438 | 207 |
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 | 923 | 673 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Loans [Member] | ||
Loans, past due | 456 | 317 |
Consumer Portfolio Segment [Member] | ||
Loans, past due | 17 | 16 |
Loans, total | 19,944 | 4,481 |
Loans, current balance | 19,927 | 4,465 |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 9 | |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 8 | 10 |
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans, past due | $ 6 |
Note 7 - Loans and Related Al51
Note 7 - Loans and Related Allowance for Loan Losses - Classes of the Loan Portfolio Summarized by Nonaccrual Loans and Still Accruing (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Loans, nonacrrual status | $ 10,213 | $ 5,903 |
Loans, 90+ days past due and accruing | 199 | |
Commercial And Industrial [Member] | ||
Loans, nonacrrual status | 1,222 | 454 |
Loans, 90+ days past due and accruing | 0 | 0 |
Real Estate Construction Porfolio Segment [Member] | ||
Loans, nonacrrual status | ||
Loans, 90+ days past due and accruing | 0 | 0 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, nonacrrual status | 3,839 | 4,034 |
Loans, 90+ days past due and accruing | 199 | 0 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, nonacrrual status | 5,152 | 1,409 |
Loans, 90+ days past due and accruing | $ 0 | 0 |
Consumer Portfolio Segment [Member] | ||
Loans, nonacrrual status | 6 | |
Loans, 90+ days past due and accruing |
Note 7 - Loans and Related Al52
Note 7 - Loans and Related Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
ALLL balance, period start | $ 6,720 | $ 6,357 | $ 6,598 | $ 6,385 |
Charge-offs | (474) | (275) | (682) | (452) |
Recoveries | 189 | 179 | 354 | 223 |
Provision | 170 | 105 | 335 | 210 |
ALLL balance, period end | 6,605 | 6,366 | 6,605 | 6,366 |
Commercial And Industrial [Member] | ||||
ALLL balance, period start | 616 | 583 | 448 | 867 |
Charge-offs | (415) | (3) | (435) | (123) |
Recoveries | 65 | 9 | 144 | 47 |
Provision | 347 | (105) | 456 | (307) |
ALLL balance, period end | 613 | 484 | 613 | 484 |
Real Estate Construction Porfolio Segment [Member] | ||||
ALLL balance, period start | 186 | 247 | 172 | 276 |
Charge-offs | ||||
Recoveries | 6 | 22 | ||
Provision | 10 | (88) | 8 | (117) |
ALLL balance, period end | 202 | 159 | 202 | 159 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||
ALLL balance, period start | 2,523 | 2,716 | 2,818 | 3,139 |
Charge-offs | (7) | (202) | (74) | (244) |
Recoveries | 7 | 28 | 14 | 31 |
Provision | (756) | 246 | (991) | (138) |
ALLL balance, period end | 1,767 | 2,788 | 1,767 | 2,788 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||||
ALLL balance, period start | 3,378 | 2,783 | 3,135 | 2,078 |
Charge-offs | (70) | (19) | (70) | |
Recoveries | 140 | 140 | ||
Provision | 634 | 56 | 896 | 761 |
ALLL balance, period end | 4,012 | 2,909 | 4,012 | 2,909 |
Consumer Portfolio Segment [Member] | ||||
ALLL balance, period start | 17 | 28 | 25 | 25 |
Charge-offs | (52) | (154) | (15) | |
Recoveries | 111 | 2 | 174 | 5 |
Provision | (65) | (4) | (34) | 11 |
ALLL balance, period end | $ 11 | $ 26 | $ 11 | $ 26 |
Note 7 - Loans and Related Al53
Note 7 - Loans and Related Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Commercial And Industrial [Member] | ||||
Pre-modification outstanding recorded investment | $ 904 | $ 3 | $ 954 | $ 169 |
Post-modification outstanding recorded investment | $ 905 | $ 3 | $ 955 | $ 169 |
Number of contracts | 1 | 1 | 2 | 2 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||
Pre-modification outstanding recorded investment | $ 7 | $ 58 | $ 10 | $ 58 |
Post-modification outstanding recorded investment | $ 7 | $ 58 | $ 10 | $ 58 |
Number of contracts | 1 | 1 | 2 | 1 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Pre-modification outstanding recorded investment | $ 311 | $ 311 | ||
Post-modification outstanding recorded investment | $ 311 | $ 311 | ||
Number of contracts | 1 | 1 | ||
Extended Maturity [Member] | Commercial And Industrial [Member] | ||||
Number of contracts | 1 | 1 | 2 | |
Extended Maturity [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||
Number of contracts | 1 | 1 | 2 | 1 |
Extended Maturity [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Number of contracts | 1 | 1 | ||
Other Restructurings [Member] | Commercial And Industrial [Member] | ||||
Number of contracts | 1 | 1 | ||
Other Restructurings [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||
Number of contracts | ||||
Other Restructurings [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Number of contracts |
Note 8 - Other Real Estate Ow54
Note 8 - Other Real Estate Owned ("OREO") (Details Textual) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Real Estate Acquired Through Foreclosure | $ 650,000 | $ 934,000 |
Note 9 - Business Acquisition55
Note 9 - Business Acquisition (Details Textual) - USD ($) | Jan. 12, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Goodwill | $ 15,435,000 | $ 15,435,000 | $ 4,559,000 | ||||
Business Combination, Acquisition Related Costs | 307,000 | 694,000 | |||||
Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | 100.00% | |||||
Business Combination, Consideration Transferred | $ 42,168,000 | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 544,610 | ||||||
Payments to Acquire Businesses, Gross | $ 21,173,000 | ||||||
Shares Issued, Price Per Share | $ 38.55 | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 488,000 | 488,000 | |||||
Goodwill | $ 10,876,000 | ||||||
Goodwill, Impairment Loss | 0 | ||||||
Goodwill, Purchase Accounting Adjustments | 211,000 | ||||||
Business Combination, Acquisition Related Costs | 467,000 | ||||||
Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | Core Deposits [Member] | |||||||
Finite-Lived Core Deposits, Gross | 2,932,000 | 2,932,000 | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 155,000 | $ 155,000 |
Note 9 - Business Acquisition -
Note 9 - Business Acquisition - Purchase Price and Adjustments (Details) - USD ($) | Jan. 12, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 |
Net assets acquired: | ||||
Goodwill | $ 15,435,000 | $ 4,559,000 | ||
Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | ||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 544,610 | |||
Shares Issued, Price Per Share | $ 38.55 | |||
Purchase price assigned to Liberty Bank common shares exchanged for Middlefield Banc Corp. shares | $ 20,995,000 | |||
us-gaap_BusinessCombinationConsiderationTransferredIncludingEquityInterestInAcquireeHeldPriorToCombinationAbstract | ||||
Payments to Acquire Businesses, Gross | 21,173,000 | |||
Business Combination, Consideration Transferred | 42,168,000 | |||
Previously held equity interest in Liberty Bank | 1,068,000 | $ 1,068,000 | ||
Net assets acquired: | ||||
Liberty Bank shareholders equity | 30,277,000 | |||
Allowance for loan loss | 3,257,000 | |||
Core deposit intangible | 3,087,000 | |||
Loans - interest rate | 578,000 | |||
Loans - general credit | (2,161,000) | |||
Deferred tax asset | (1,073,000) | |||
Other | 254,000 | |||
Time deposits | (141,000) | |||
Change in control | (1,718,000) | |||
32,360,000 | ||||
Goodwill | $ 10,876,000 |
Note 9 - Business Acquisition57
Note 9 - Business Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) | Jan. 12, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 |
Net assets acquired: | ||||
Goodwill | $ 15,435,000 | $ 4,559,000 | ||
Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | ||||
Total purchase price | $ 42,168,000 | |||
Previously held equity interest in Liberty Bank | 1,068,000 | $ 1,068,000 | ||
Net assets acquired: | ||||
Cash | 26,604,000 | |||
Loans and loans held for sale | 201,341,000 | |||
Premises and equipment, net | 325,000 | |||
Accrued interest receivable | 440,000 | |||
Bank-owned life insurance | 1,681,000 | |||
Core deposit intangible | 3,087,000 | |||
Deferred tax asset | (1,073,000) | |||
Other assets | 997,000 | |||
Time deposits | (30,744,000) | |||
Non-time deposits | (167,300,000) | |||
Accrued interest payable | (47,000) | |||
Other liabilities | (2,951,000) | |||
32,360,000 | ||||
Goodwill | $ 10,876,000 |
Note 9 - Business Acquisition58
Note 9 - Business Acquisition - Schedule of Future Amortization Expenses for Core Deposits Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
$ 2,948 | $ 36 | |
Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | Core Deposits [Member] | ||
Remaining 2,017 | 187 | |
2,018 | 348 | |
2,019 | 341 | |
2,020 | 332 | |
2,021 | 321 | |
2,022 | 309 | |
2,023 | 296 | |
2,024 | 281 | |
2,025 | 264 | |
2,026 | 253 | |
$ 2,932 |
Note 9 - Business Acquisition59
Note 9 - Business Acquisition - Pro Forma Information (Details) - Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net interest income | $ 2,509 | $ 5,244 | |||
Noninterest income | 234 | 525 | |||
Net income | 1,204 | $ 1,302 | |||
Net interest income | 9,575 | $ 8,868 | $ 18,630 | $ 17,198 | |
Noninterest income | 1,050 | 1,538 | 2,622 | 2,695 | |
Net income | $ 1,490 | $ 2,691 | $ 2,573 | $ 4,513 | |
Basic pro forma (in dollars per share) | $ 0.52 | $ 1.37 | $ 0.91 | $ 2.30 | |
Diluted pro forma (in dollars per share) | $ 0.52 | $ 1.36 | $ 0.90 | $ 2.29 |