Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 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) | 3,214,784 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheet (Cur
Consolidated Balance Sheet (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | |
ASSETS | |||
Cash and due from banks | $ 47,731 | $ 31,395 | |
Federal funds sold | 1,200 | 1,100 | |
Cash and cash equivalents | 48,931 | 32,495 | |
Investment securities available for sale, at fair value | 98,334 | 114,376 | |
Loans held for sale | 5,930 | 634 | |
Loans | 878,541 | 609,140 | |
Less allowance for loan and lease losses | 6,852 | 6,598 | |
Net loans | 871,689 | 602,542 | |
Premises and equipment, net | 11,768 | 11,203 | |
Goodwill | 15,299 | 4,559 | |
Core deposit intangibles | 2,848 | 36 | |
Bank-owned life insurance | 15,542 | 13,540 | |
Other real estate owned | 557 | 934 | |
Accrued interest and other assets | 9,928 | 7,502 | |
TOTAL ASSETS | 1,080,826 | 787,821 | |
LIABILITIES | |||
Noninterest-bearing demand | 181,550 | 133,630 | |
Interest-bearing demand | 91,184 | 59,560 | |
Money market | 161,101 | 74,940 | |
Savings | 212,371 | 172,370 | |
Time | 251,449 | 189,434 | |
Total deposits | 897,655 | 629,934 | |
Short-term borrowings | 20,274 | 68,359 | |
Other borrowings | 39,273 | 9,437 | |
Accrued interest and other liabilities | 5,130 | 3,131 | |
TOTAL LIABILITIES | 962,332 | 710,861 | |
STOCKHOLDERS' EQUITY | |||
Common stock, no par value; 10,000,000 shares authorized, 3,600,902 and 2,640,418 shares issued; 3,214,737 and 2,254,253 shares outstanding | 84,722 | 47,943 | |
Retained earnings | 45,913 | 41,334 | |
Accumulated other comprehensive income | [1] | 1,377 | 1,201 |
Treasury stock, at cost; 386,165 shares | (13,518) | (13,518) | |
TOTAL STOCKHOLDERS' EQUITY | 118,494 | 76,960 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,080,826 | $ 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 | Sep. 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) | 3,600,902 | 2,640,418 |
Common stock, shares outstanding (in shares) | 3,214,737 | 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
INTEREST AND DIVIDEND INCOME | ||||
Interest and fees on loans | $ 10,443 | $ 6,459 | $ 29,539 | $ 18,949 |
Interest-bearing deposits in other institutions | 107 | 15 | 248 | 42 |
Federal funds sold | 5 | 7 | 9 | 16 |
Investment securities: | ||||
Taxable interest | 159 | 235 | 600 | 865 |
Tax-exempt interest | 579 | 687 | 1,846 | 2,227 |
Dividends on stock | 37 | 17 | 189 | 74 |
Total interest and dividend income | 11,330 | 7,420 | 32,431 | 22,173 |
INTEREST EXPENSE | ||||
Deposits | 1,468 | 921 | 3,820 | 2,665 |
Short-term borrowings | 202 | 49 | 652 | 288 |
Other borrowings | 148 | 56 | 413 | 164 |
Total interest expense | 1,818 | 1,026 | 4,885 | 3,117 |
NET INTEREST INCOME | 9,512 | 6,394 | 27,546 | 19,056 |
Provision for loan losses | 280 | 105 | 615 | 315 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,232 | 6,289 | 26,931 | 18,741 |
NONINTEREST INCOME | ||||
Service charges on deposit accounts | 479 | 505 | 1,397 | 1,443 |
Investment securities gains, net | 398 | 886 | 303 | |
Earnings on bank-owned life insurance | 109 | 101 | 316 | 297 |
Gain on sale of loans | 255 | 129 | 720 | 322 |
Other income | 200 | 242 | 622 | 694 |
Total noninterest income | 1,441 | 977 | 3,941 | 3,059 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 3,725 | 2,677 | 10,624 | 7,740 |
Occupancy expense | 476 | 306 | 1,397 | 933 |
Equipment expense | 242 | 221 | 789 | 700 |
Data processing costs | 468 | 334 | 1,376 | 928 |
Ohio state franchise tax | 186 | 186 | 558 | 448 |
Federal deposit insurance expense | 165 | 132 | 368 | 396 |
Professional fees | 434 | 547 | 1,230 | 1,057 |
Net loss on other real estate owned | 18 | 48 | 88 | 247 |
Advertising expense | 248 | 206 | 660 | 604 |
Core deposit intangible amortization | 101 | 10 | 276 | 30 |
Merger expense | 338 | 1,032 | ||
Other expense | 896 | 995 | 2,870 | 2,832 |
Total noninterest expense | 7,297 | 5,662 | 21,268 | 15,915 |
Income before income taxes | 3,376 | 1,604 | 9,604 | 5,885 |
Income taxes | 914 | 261 | 2,535 | 1,129 |
NET INCOME | $ 2,462 | $ 1,343 | $ 7,069 | $ 4,756 |
EARNINGS PER SHARE | ||||
Basic (in dollars per share) | $ 0.77 | $ 0.60 | $ 2.38 | $ 2.31 |
Diluted (in dollars per share) | 0.76 | 0.60 | 2.37 | 2.30 |
DIVIDENDS DECLARED PER SHARE (in dollars per share) | $ 0.27 | $ 0.27 | $ 0.81 | $ 0.81 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Net income | $ (2,462) | $ (1,343) | $ (7,069) | $ (4,756) | |
Other comprehensive income: | |||||
Net unrealized holding gain (loss) on available-for-sale securities | (264) | (400) | 1,153 | 2,153 | |
Tax effect | 89 | 137 | (392) | (732) | |
Reclassification adjustment for investment securities gain included in net income | (398) | (886) | (303) | ||
Tax effect | 135 | 301 | 103 | ||
Total other comprehensive income (loss) | [1] | (438) | (263) | 176 | 1,221 |
Comprehensive income | $ 2,024 | $ 1,080 | $ 7,245 | $ 5,977 | |
[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) - 9 months ended Sep. 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 | 7,069 | 7,069 | |||
Other comprehensive income | 176 | 176 | |||
Common stock issued in business combination (544,610 shares) | 20,995 | 20,995 | |||
Other common stock issuances, net of offering cost (399,008 shares) | 15,164 | 15,164 | |||
Dividend reinvestment and purchase plan (8,917 shares) | 407 | 407 | |||
Stock options exercised (7,126 shares) | 180 | 180 | |||
Stock issued in connection with equity awards, net (823 shares) | 33 | 33 | |||
Cash dividends declared ($0.81 per share) | (2,490) | (2,490) | |||
Balance at Sep. 30, 2017 | $ 84,722 | $ 45,913 | $ 1,377 | $ (13,518) | $ 118,494 |
Consolidated Statement of Chan7
Consolidated Statement of Changes in Stockholders Equity (Unaudited) (Parentheticals) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Common Stock [Member] | |
Common stock issued in business combination (in shares) | 554,610 |
Other common stock issued (in shares) | 399,008 |
Dividend reinvestment and purchase plan (in shares) | 8,917 |
Stock options exercised (in shares) | 7,126 |
Stock issued in connection with equity awards (in shares) | 823 |
Retained Earnings [Member] | |
Cash dividend per share (in dollars per share) | $ / shares | $ 0.81 |
Stock options exercised (in shares) | 7,949 |
Cash dividend per share (in dollars per share) | $ / shares | $ 0.81 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net income | $ 7,069 | $ 4,756 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 615 | 315 |
Investment securities gain, net | (886) | (303) |
Depreciation and amortization of premises and equipment, net | 797 | 744 |
Amortization of premium and discount on investment securities, net | 343 | 352 |
Accretion of deferred loan fees, net | (246) | (150) |
Amortization of core deposit intangibles | 276 | 30 |
Equity-based compensation | 33 | |
Origination of loans held for sale | (13,345) | (15,497) |
Proceeds from sale of loans | 7,811 | 16,046 |
Gain on sale of loans | (239) | (322) |
Origination of student loans held for sale | (321,942) | |
Proceeds from sale of student loans | 328,853 | |
Gain on sale of student loans | (481) | |
Earnings on bank-owned life insurance | (316) | (297) |
Deferred income tax | (532) | 224 |
Net (gain) loss on other real estate owned | (211) | 247 |
(Increase) in accrued interest receivable | (311) | (139) |
Increase (decrease) in accrued interest payable | 124 | (4) |
Other, net | (2,193) | 253 |
Net cash provided by operating activities | 5,218 | 6,255 |
INVESTING ACTIVITIES | ||
Proceeds from repayments and maturities | 9,560 | 17,896 |
Proceeds from sale of securities | 6,474 | 9,115 |
Purchases | (250) | (1,744) |
Increase in loans, net | (75,307) | (53,430) |
Proceeds from the sale of other real estate owned | 1,767 | 555 |
Purchase of bank-owned life insurance | (5) | |
Purchase of premises and equipment | (1,037) | (679) |
Purchase of restricted stock | (899) | |
Redemption of restricted stock | 795 | |
Acquisition, net of cash paid | 5,431 | |
Net cash used in investing activities | (53,471) | (28,287) |
FINANCING ACTIVITIES | ||
Net increase in deposits | 69,677 | 14,895 |
(Decrease) in short-term borrowings, net | (48,085) | (3,022) |
Repayment of other borrowings | (164) | (226) |
Proceeds from other borrowings | 30,000 | |
Proceeds from common stock issued | 15,164 | 11,239 |
Net cash from common stock transactions | 180 | |
Proceeds from dividend reinvestment and purchase plan | 407 | 382 |
Cash dividends | (2,490) | (1,710) |
Net cash provided by financing activities | 64,689 | 21,558 |
Increase (decrease) in cash and cash equivalents | 16,436 | (474) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 32,495 | 23,750 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 48,931 | 23,276 |
Cash paid during the year for: | ||
Interest on deposits and borrowings | 4,761 | 3,121 |
Income taxes | 4,455 | 475 |
Noncash investing transactions: | ||
Transfers from loans to other real estate owned | 1,179 | 595 |
Common stock issued in business acquisition | 20,995 | |
Liabilities assumed | ||
Cash and cash equivalents acquired, net | $ 5,431 | |
Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | ||
INVESTING ACTIVITIES | ||
Acquisition, net of cash paid | 5,431 | |
Noncash assets acquired | ||
Loans | 195,388 | |
Loans held for sale | 5,953 | |
Premises and equipment, net | 325 | |
Accrued interest receivable | 440 | |
Bank-owned life insurance | 1,681 | |
Core deposit intangible | 3,087 | |
Other assets | 997 | |
Goodwill | 10,740 | |
218,611 | ||
Liabilities assumed | ||
Time deposits | (30,744) | |
Deposits other than time deposits | (167,300) | |
Accrued interest payable | (47) | |
Deferred taxes | (1,134) | |
Other liabilities | (2,754) | |
(201,979) | ||
Liberty stock acquired in business combination | (1,068) | |
Net noncash assets acquired | 15,564 | |
Cash and cash equivalents acquired, net | $ 5,431 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 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 subsidiar y, The Middlefield Banking Company (“MBC” or “Middlefield Bank”), and a nonbank asset resolution subsidiary EMORECO, Inc. All significant inter-company items have been eliminated. On January 12, 2017, $37.96 1.1934 the Company’s common stock in exchange for each share of Liberty common stock they owned immediately prior to the merger. The Company issued 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. ’s opinion, the financial statements include all adjustments, consisting of normal recurring adjustments, that the Company considers necessary to fairly state the Company’s financial position and the results of operations and cash flows. The consolidated balance sheet at December 31, 2016, not 10 December 31, 2016. not Recent Accounting Pronouncements – In May 2014, No. 2014 09, Revenue from Contracts with Customers (Topic 606 605, Revenue Recognition, No. 2014 09, 1 2 3 4 5 December 15, 2016, August 2015, No. 2015 14 No. 2014 09. not No. 2014 09 December 15, 2017, not not not not not In February 2016, 2016 02, Leases (Topic 842 one 12 not may December 15, 2018, December 15, 2019, December 15, 2020. may not 1 In June 2016, 2016 13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments 2016 13 December 15, 2019, December 15, 2018. first one first one In January 2017, 2017 01, Business Combinations (Topic 805 not December 15, 2017, December 15, 2018, December 15, 2019. not In January 2017, 2017 04, Simplifying the Test for Goodwill Impairment 2 2, not December 15, 2019. not December 15, 2020. not December 15, 2021. not In March 2017, 2017 08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 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 | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 2 - STOCK-BASED COMPENSATION The Company had no September 30, 2017 2016. Stock option activity during the nine September 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, September 30 21,375 $ 21.37 31,949 $ 25.03 Exercisable, September 30 21,375 $ 21.37 31,949 $ 25.03 |
Note 3 - Earnings Per Share
Note 3 - Earnings Per Share | 9 Months Ended |
Sep. 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 Nine Months Ended Months Ended September 30, September 30, 2017 2016 2017 2016 Weighted-average common shares outstanding 3,598,500 2,633,752 3,352,316 2,445,821 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 3,212,335 2,247,587 2,966,151 2,059,656 Additional common stock equivalents (stock options) used to calculate diluted earnings per share 11,418 8,643 12,592 8,876 Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 3,223,753 2,256,230 2,978,743 2,068,532 Options to purchase 21,375 $ 17.55 $ 37.00 three nine September 30, 2017. 21,375 three nine no Options to purchase 31,949 $ 17.55 $ 40.24 three nine September 30, 2016. 24,700 three nine 7,249 |
Note 4 - Fair Value Disclosure
Note 4 - Fair Value Disclosure Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE 4 - FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following levels: Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no not two The following tables present the assets measur ed on a recurring basis on the Consolidated Balance Sheet at their fair value by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. September 30, 2017 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a recurring basis: U.S. government agency securities $ - $ 9,094 $ - $ 9,094 Obligations of states and political subdivisions - 72,094 - 72,094 Mortgage-backed securities in government-sponsored entities - 16,579 - 16,579 Total debt securities - 97,767 - 97,767 Equity securities in financial institutions - 567 - 567 Total $ - $ 98,334 $ - $ 98,334 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 Impaired Loans – The Company has measured impairment on collateral-dependent impaired loans generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third may not not $437,000 September 30, 2017. Other Real Estate Owned (OREO) – OREO is carried at the lower of cost or fair value, which is measured at the date of foreclosure. If the fair value of the collateral exceeds the carrying amount of the loan, no not not may 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. Collateral -dependent impaired loans are carried at fair value if they have been charged down to fair value or if a specific valuation allowance has been established. A new cost basis is established at the time a property is initially recorded in OREO. OREO properties are carried at fair value if a devaluation has been taken to the property’s value subsequent to the initial measurement. September 30, 2017 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a nonrecurring basis: Impaired loans $ - $ - $ 1,620 $ 1,620 Other real estate owned - - 81 81 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 table s present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company uses Level III inputs to determine fair value: Quantitative Information about Level III Fair Value Measurements (Dollar amounts in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) September 30, 2017 Impaired loans $ 1,620 Appraisal of collateral (1) Appraisal adjustments (2) 3.3% to 8.3% (5.3%) Other real estate owned $ 81 Appraisal of collateral (1) Appraisal adjustments (2) 0.0% to 10.0% Quantitative Information about Level III Fair Value Measurements (Dollar amounts in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2016 Impaired loans $ 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 g enerally include various level III inputs which are not ( 2 Appraisals may average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The estimated fair value of the Company ’s financial instruments is as follows: September 30, 2017 Carrying Total Value Level I Level II Level III Fair Value (Dollar amounts in thousands) Financial assets: Cash and cash equivalents $ 48,931 $ 48,931 $ - $ - $ 48,931 Investment securities Available for sale 98,334 - 98,334 - 98,334 Loans held for sale 5,930 4,995 935 - 5,930 Net loans 871,689 - - 879,206 879,206 Bank-owned life insurance 15,542 15,542 - - 15,542 Federal Home Loan Bank stock 3,589 3,589 - - 3,589 Accrued interest receivable 3,177 3,177 - - 3,177 Financial liabilities: Deposits $ 897,655 $ 646,206 $ - $ 252,112 $ 898,318 Short-term borrowings 20,274 20,274 - - 20,274 Other borrowings 39,273 - - 39,306 39,306 Accrued interest payable 566 566 - - 566 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 2,426 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 ’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses, and other factors as determined through various option pricing formulas or simulation modeling. Since many of these assumptions result from judgments made by management based upon estimates which are inherently uncertain, the resulting estimated fair values may not 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. Within this total are student loans held for sale for which the fair value is based on readily determinable market prices, which is a level I Price. 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 Borrow ings The fair values of certificates of deposit and other borrow ings 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 | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 5 – ACCUMULATED OTHER COMPREHENSIVE INCOME The following table s present the changes in accumulated other comprehensive income by component net of tax for the three nine September 30, 2017 2016, Unrealized gains on available-for-sale (Dollars in thousands) securities Balance as of June 30, 2017 $ 1,815 Other comprehensive income before reclassification (175 ) Amount reclassified from accumulated other comprehensive income (263 ) Period change (438 ) Balance at September 30, 2017 $ 1,377 Balance as of December 31, 2016 $ 1,201 Other comprehensive income before reclassification 761 Amount reclassified from accumulated other comprehensive income (585 ) Period change 176 Balance at September 30, 2017 $ 1,377 Unrealized gains on available-for-sale (Dollars in thousands) securities Balance as of June 30, 2016 $ 3,879 Other comprehensive loss before reclassification (263 ) Amount reclassified from accumulated other comprehensive income - Period change (263 ) Balance at September 30, 2016 $ 3,616 Balance as of December 31, 2015 $ 2,395 Other comprehensive income before reclassification 1,421 Amount reclassified from accumulated other comprehensive income (200 ) Period change 1,221 Balance at September 30, 2016 $ 3,616 (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: Amount Reclassified from Accumulated Other Comprehensive Affected Line Item in Income (a) the Statement Where (Dollars in thousands) For the Three Months Ended Net Income is Details about other comprehensive income September 30, 2017 September 30, 2016 Presented Unrealized gains on available-for-sale securities $ 398 $ - Investment securities gains, net (135 ) - Income taxes $ 263 $ - Amount Reclassified from Accumulated Other Comprehensive Affected Line Item in Income (a) the Statement Where (Dollars in thousands) For the Nine Months Ended Net Income is Details about other comprehensive income September 30, 2017 September 30, 2016 Presented Unrealized gains on available-for-sale securities $ 886 $ 303 Investment securities gains, net (301 ) (103 ) Income taxes $ 585 $ 200 (a) Amounts in parentheses indicate expenses and other amounts indicate income. |
Note 6 - Investment Securities
Note 6 - Investment Securities Available for Sale | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE 6 - INVESTMENT SECURITIES AVAILABLE FOR SALE The amortized cost and fair values of securities available for sale are as follows: September 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair (Dollar amounts in thousands) Cost Gains Losses Value U.S. government agency securities $ 9,004 $ 146 $ (56 ) $ 9,094 Obligations of states and political subdivisions: Taxable 505 12 - 517 Tax-exempt 69,750 1,886 (59 ) 71,577 Mortgage-backed securities in government-sponsored entities 16,574 175 (170 ) 16,579 Total debt securities 95,833 2,219 (285 ) 97,767 Equity securities in financial institutions 415 152 - 567 Total $ 96,248 $ 2,371 $ (285 ) $ 98,334 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 September 30, 2017, may Amortized Fair (Dollar amounts in thousands) Cost Value Due in one year or less $ 4,689 $ 4,742 Due after one year through five years 9,884 10,193 Due after five years through ten years 9,643 9,783 Due after ten years 71,617 73,049 Total $ 95,833 $ 97,767 Proceeds from the sales of securities available for sale and the gross realized gains and losses are as follows: (Dollar amounts in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Proceeds from sales $ 3,787 $ - $ 6,474 $ 9,115 Gross realized gains 430 - 918 * 306 Gross realized losses (32 ) - (32 ) (3 ) *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, nine September 30, 2017. Investment securities with an approximate carrying value of $ 64.9 $60.3 September 30, 2017 December 31, 2016, $4.5 September 30, 2017 The following table s show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. September 30, 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 $ 952 $ (9 ) $ 3,211 $ (47 ) $ 4,163 $ (56 ) Obligations of states and political subdivisions Tax-exempt 3,008 (18 ) 2,112 (41 ) 5,120 (59 ) Mortgage-backed securities in government-sponsored entities 7,997 (57 ) 3,798 (113 ) 11,795 (170 ) Total $ 11,957 $ (84 ) $ 9,121 $ (201 ) $ 21,078 $ (285 ) 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 28 September 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 assess es 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 A n 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 99% September 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 nine September 30, 2017 2016, no not September 30, 2017 December 31, 2016 not |
Note 7 - Loans and Related Allo
Note 7 - Loans and Related Allowance for Loan and Lease Losses | 9 Months Ended |
Sep. 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): September 30, December 31, 2017 2016 Commercial and industrial $ 99,314 $ 60,630 Real estate - construction 40,760 23,709 Real estate - mortgage: Residential 316,191 270,830 Commercial 403,135 249,490 Consumer installment 19,141 4,481 878,541 609,140 Less: Allowance for loan and lease losses 6,852 6,598 Net loans $ 871,689 $ 602,542 The amounts above include deferred loan origination costs of $ 2.0 $1.7 September 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 September 30, 2017 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Loans: Individually evaluated for impairment $ 3,038 $ 185 $ 2,844 $ 5,788 $ 4 $ 11,859 Collectively evaluated for impairment 96,276 40,575 313,347 397,347 19,137 866,682 Total loans $ 99,314 $ 40,760 $ 316,191 $ 403,135 $ 19,141 $ 878,541 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 September 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 $ 436 $ - $ 132 $ 692 $ - $ 1,260 Collectively evaluated for impairment 291 259 1,704 2,991 347 5,592 Total ending allowance balance $ 727 $ 259 $ 1,836 $ 3,683 $ 347 $ 6,852 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, CRE, and Consumer Installment loan portfolios were partially offset by a decrease in the allowance for the Residential 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 the following methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not The following table s present impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not September 30, 2017 Impaired Loans Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Commercial and industrial $ 1,368 $ 1,550 $ - Real estate - construction 185 185 - Real estate - mortgage: Residential 1,875 2,092 - Commercial 2,969 3,108 - Total $ 6,397 $ 6,935 $ - With an allowance recorded: Commercial and industrial $ 1,670 $ 2,115 $ 436 Real estate - mortgage: Residential 969 1,005 132 Commercial 2,819 2,984 692 Consumer installment 4 4 - Total $ 5,462 $ 6,108 $ 1,260 Total: Commercial and industrial $ 3,038 $ 3,665 $ 436 Real estate - construction 185 185 - Real estate - mortgage: Residential 2,844 3,097 132 Commercial 5,788 6,092 692 Consumer installment 4 4 - Total $ 11,859 $ 13,043 $ 1,260 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 - Total $ 5,405 $ 5,394 $ - With an allowance recorded: Commercial and industrial $ 871 $ 868 $ 90 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 September 30, 2017 $2.7 December 31, 2016. The following table s present the average balance and interest income by class, recognized on impaired loans (in thousands): For the Three Months Ended September 30, 2017 For the Nine Months Ended September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 2,633 $ 69 $ 1,962 $ 210 Real estate - construction 431 - 738 1 Real estate - mortgage: Residential 2,988 19 3,149 69 Commercial 7,216 48 7,223 231 Consumer installment 5 1 5 1 $ 13,273 $ 137 $ 13,077 $ 512 For the Three Months Ended September 30, 2016 For the Nine Months Ended September 30, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 864 $ 4 $ 1,218 $ 9 Real estate - construction 1,105 3 1,404 22 Real estate - mortgage: Residential 3,389 - 3,660 36 Commercial 7,939 8 7,449 115 Consumer installment 5 - 6 - $ 13,302 $ 15 $ 13,737 $ 182 Management uses a nine first five not ized and are aggregated as Pass rated. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not 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 cu rrent 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 table s present the classes of the loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk-rating system (in thousands): Special Total Pass Mention Substandard Doubtful Loans September 30, 2017 Commercial and industrial $ 92,855 $ 2,188 $ 4,271 $ - $ 99,314 Real estate - construction 40,737 - 23 - 40,760 Real estate - mortgage: Residential 310,086 744 5,361 - 316,191 Commercial 393,538 4,477 5,120 - 403,135 Consumer installment 18,909 - 232 - 19,141 Total $ 856,125 $ 7,409 $ 15,007 $ - $ 878,541 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 non accrual loans, troubled debt restructurings (TDRs), loans 90 The following table s present the classes of the loan portfolio summarized by the aging categories of performing loans (in thousands): 30-59 Days 60-89 Days 90 Days+ Total Total Current Past Due Past Due Past Due Past Due Loans September 30, 2017 Commercial and industrial $ 98,449 $ 632 $ - $ 233 $ 865 $ 99,314 Real estate - construction 40,760 - - - - 40,760 Real estate - mortgage: Residential 313,720 1,101 37 1,333 2,471 316,191 Commercial 400,497 1,236 1,037 365 2,638 403,135 Consumer installment 19,128 10 3 - 13 19,141 Total $ 872,554 $ 2,979 $ 1,077 $ 1,931 $ 5,987 $ 878,541 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): September 30, 2017 90+ Days Past Nonaccrual Due and Accruing Commercial and industrial $ 1,367 $ 20 Real estate - mortgage: Residential 3,802 248 Commercial 3,356 - Total $ 8,525 $ 268 December 31, 2016 90+ Days Past Nonaccrual Due and Accruing Commercial and industrial $ 454 $ - 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 398,000 nine September 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 table s 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 (439 ) - (74 ) (39 ) (384 ) (936 ) Recoveries 189 34 59 111 182 575 Provision 529 53 (967 ) 476 524 615 ALLL balance at September 30, 2017 $ 727 $ 259 $ 1,836 $ 3,683 $ 347 $ 6,852 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at December 31, 2015 $ 867 $ 276 $ 3,139 $ 2,078 $ 25 $ 6,385 Charge-offs (197 ) - (394 ) (70 ) (18 ) (679 ) Recoveries 51 - 113 140 9 313 Provision (208 ) (138 ) (97 ) 747 11 315 ALLL balance at September 30, 2016 $ 513 $ 138 $ 2,761 $ 2,895 $ 27 $ 6,334 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at June 30, 2017 $ 613 $ 202 $ 1,767 $ 4,012 $ 11 $ 6,605 Charge-offs (4 ) - - (20 ) (229 ) (253 ) Recoveries 46 11 45 111 7 220 Provision 72 46 24 (420 ) 558 280 ALLL balance at September 30, 2017 $ 727 $ 259 $ 1,836 $ 3,683 $ 347 $ 6,852 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at June 30, 2016 $ 484 $ 159 $ 2,788 $ 2,909 $ 26 $ 6,366 Charge-offs (74 ) - (149 ) - (3 ) (226 ) Recoveries 4 - 82 - 3 89 Provision 99 (21 ) 40 (14 ) 1 105 ALLL balance at September 30, 2016 $ 513 $ 138 $ 2,761 $ 2,895 $ 27 $ 6,334 The negative provision allocated to residential real estate loans in the amount of $967,000 three September 30, 2017 The negative provision allocated to commercial real estate loans in the amount of $420,000 nine September 30, 2017 The following table s summarize troubled debt restructurings (in thousands): For the Three Months Ended September 30, 2017 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Residential real estate 1 - 1 $ 29 $ 29 For the Nine Months Ended September 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 3 - 3 39 39 For the Nine Months Ended September 30, 2016 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial 2 - 2 $ 169 $ 169 Residential real estate 1 - 1 58 58 Commercial real estate 1 - 1 311 311 For the three September 30, 2016 no One $33,000, during 2017. September 30, 2017. no three nine September 30, 2017. The following tables summarize subsequent defaults of troubled debt restructurings (in thousands) for the three nine September 30, 2016: For the Three Months Ended September 30, 2016 Troubled Debt Restructurings subsequently defaulted Number of Contracts Recorded Investment Commercial and industrial 1 $ 3 Residential real estate 1 58 For the Nine Months Ended September 30, 2016 Troubled Debt Restructurings subsequently defaulted Number of Contracts Recorded Investment Commercial and industrial 2 $ 273 Real estate construction 1 58 |
Note 8 - Other Real Estate Owne
Note 8 - Other Real Estate Owned ("OREO") | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Real Estate Owned [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 estima ted cost to sell and is presented on the Consolidated Balance Sheet. At September 30, 2017 December 31, 2016, $557,000 $934,000 $1.0 September 30, 2017. |
Note 9 - Business Acquisition
Note 9 - Business Acquisition | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 9 – BUSINESS ACQUISITION 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 As a result of the acquisition, the Company issued 544,610 $21.2 $38.55 January 12, 2017. $488,000, nine September 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 20,995 Middlefield Banc Corp. shares 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 $ 30,474 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 ) Other 254 Adjustments to reflect liabilities acquired at fair value: Time deposits (141 ) Deferred taxes (1,134 ) Change in control (1,718 ) 32,496 Goodwill resulting from merger $ 10,740 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 Other assets 997 Time deposits (30,744 ) Non-time deposits (167,300 ) Accrued interest payable (47 ) Deferred taxes (1,134 ) Other liabilities (2,754 ) 32,496 Goodwill resulting from the Liberty Bank merger $ 10,740 Middlefield recorded goodwill and intangibles associated with the purchase of Liberty Bank totaling $ 10,740,000. not not nine September 30, 2017. $347,000 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 nine September 30, 2017, no September 30, 2017 $2,838,000 $249,000 As of September 30, 2017, Remaining 2017 93 2018 348 2019 341 2020 332 2021 321 2022 309 2023 296 2024 281 2025 264 2026 253 2,838 Results of operations for Liberty prior to the acquisition date are not three nine September 30, 2017. September 30, 2017 Actual from Acquisition Date Through September 30, 2017 Actual Third Quarter 2017 (in thousands) (in thousands) Net interest income $ 7,810 $ 2,566 Noninterest income 744 219 Net income $ 2,625 $ 1,323 The table below presents unaudited pro forma information as if the acquisition of Liberty Bank had occurred on January 1, 2016 . This has been prepared for comparative purposes only and is not not Pro Formas Pro Formas Nine-month period ended September 30, Three-month period ended September 30, 2017 2016 2017 2016 (in thousands, except per share data) (in thousands, except per share data) Net interest income $ 27,844 $ 25,790 $ 9,214 $ 8,868 Noninterest income 4,002 4,141 1,380 1,538 Net income $ 6,052 $ 6,416 $ 3,479 $ 2,691 Pro forma earnings per share: Basic $ 2.04 $ 3.12 $ 1.17 $ 1.31 Diluted $ 2.03 $ 3.10 $ 1.17 $ 1.30 Included in the above net income amount for the three nine September 30, 2017 $338,000 $1,032,000 |
Note 10 - Subsequent Event
Note 10 - Subsequent Event | 9 Months Ended |
Sep. 30, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 10 – SUBSEQUENT EVENTS Management has evaluated subsequent events through November 14, 2017, no September 30, 2017. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements – In May 2014, No. 2014 09, Revenue from Contracts with Customers (Topic 606 605, Revenue Recognition, No. 2014 09, 1 2 3 4 5 December 15, 2016, August 2015, No. 2015 14 No. 2014 09. not No. 2014 09 December 15, 2017, not not not not not In February 2016, 2016 02, Leases (Topic 842 one 12 not may December 15, 2018, December 15, 2019, December 15, 2020. may not 1 In June 2016, 2016 13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments 2016 13 December 15, 2019, December 15, 2018. first one first one In January 2017, 2017 01, Business Combinations (Topic 805 not December 15, 2017, December 15, 2018, December 15, 2019. not In January 2017, 2017 04, Simplifying the Test for Goodwill Impairment 2 2, not December 15, 2019. not December 15, 2020. not December 15, 2021. not In March 2017, 2017 08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 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) | 9 Months Ended |
Sep. 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, September 30 21,375 $ 21.37 31,949 $ 25.03 Exercisable, September 30 21,375 $ 21.37 31,949 $ 25.03 |
Note 3 - Earnings Per Share (Ta
Note 3 - Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Weighted Average Number of Shares [Table Text Block] | For the Three For the Nine Months Ended Months Ended September 30, September 30, 2017 2016 2017 2016 Weighted-average common shares outstanding 3,598,500 2,633,752 3,352,316 2,445,821 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 3,212,335 2,247,587 2,966,151 2,059,656 Additional common stock equivalents (stock options) used to calculate diluted earnings per share 11,418 8,643 12,592 8,876 Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share 3,223,753 2,256,230 2,978,743 2,068,532 |
Note 4 - Fair Value Disclosur22
Note 4 - Fair Value Disclosure Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | September 30, 2017 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a recurring basis: U.S. government agency securities $ - $ 9,094 $ - $ 9,094 Obligations of states and political subdivisions - 72,094 - 72,094 Mortgage-backed securities in government-sponsored entities - 16,579 - 16,579 Total debt securities - 97,767 - 97,767 Equity securities in financial institutions - 567 - 567 Total $ - $ 98,334 $ - $ 98,334 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 September 30, 2017 (Dollar amounts in thousands) Level I Level II Level III Total Assets measured on a nonrecurring basis: Impaired loans $ - $ - $ 1,620 $ 1,620 Other real estate owned - - 81 81 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) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) September 30, 2017 Impaired loans $ 1,620 Appraisal of collateral (1) Appraisal adjustments (2) 3.3% to 8.3% (5.3%) Other real estate owned $ 81 Appraisal of collateral (1) Appraisal adjustments (2) 0.0% to 10.0% Quantitative Information about Level III Fair Value Measurements (Dollar amounts in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2016 Impaired loans $ 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] | September 30, 2017 Carrying Total Value Level I Level II Level III Fair Value (Dollar amounts in thousands) Financial assets: Cash and cash equivalents $ 48,931 $ 48,931 $ - $ - $ 48,931 Investment securities Available for sale 98,334 - 98,334 - 98,334 Loans held for sale 5,930 4,995 935 - 5,930 Net loans 871,689 - - 879,206 879,206 Bank-owned life insurance 15,542 15,542 - - 15,542 Federal Home Loan Bank stock 3,589 3,589 - - 3,589 Accrued interest receivable 3,177 3,177 - - 3,177 Financial liabilities: Deposits $ 897,655 $ 646,206 $ - $ 252,112 $ 898,318 Short-term borrowings 20,274 20,274 - - 20,274 Other borrowings 39,273 - - 39,306 39,306 Accrued interest payable 566 566 - - 566 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 2,426 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) | 9 Months Ended |
Sep. 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 June 30, 2017 $ 1,815 Other comprehensive income before reclassification (175 ) Amount reclassified from accumulated other comprehensive income (263 ) Period change (438 ) Balance at September 30, 2017 $ 1,377 Balance as of December 31, 2016 $ 1,201 Other comprehensive income before reclassification 761 Amount reclassified from accumulated other comprehensive income (585 ) Period change 176 Balance at September 30, 2017 $ 1,377 Unrealized gains on available-for-sale (Dollars in thousands) securities Balance as of June 30, 2016 $ 3,879 Other comprehensive loss before reclassification (263 ) Amount reclassified from accumulated other comprehensive income - Period change (263 ) Balance at September 30, 2016 $ 3,616 Balance as of December 31, 2015 $ 2,395 Other comprehensive income before reclassification 1,421 Amount reclassified from accumulated other comprehensive income (200 ) Period change 1,221 Balance at September 30, 2016 $ 3,616 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Amount Reclassified from Accumulated Other Comprehensive Affected Line Item in Income (a) the Statement Where (Dollars in thousands) For the Three Months Ended Net Income is Details about other comprehensive income September 30, 2017 September 30, 2016 Presented Unrealized gains on available-for-sale securities $ 398 $ - Investment securities gains, net (135 ) - Income taxes $ 263 $ - Amount Reclassified from Accumulated Other Comprehensive Affected Line Item in Income (a) the Statement Where (Dollars in thousands) For the Nine Months Ended Net Income is Details about other comprehensive income September 30, 2017 September 30, 2016 Presented Unrealized gains on available-for-sale securities $ 886 $ 303 Investment securities gains, net (301 ) (103 ) Income taxes $ 585 $ 200 |
Note 6 - Investment Securitie24
Note 6 - Investment Securities Available for Sale (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | September 30, 2017 Gross Gross Amortized Unrealized Unrealized Fair (Dollar amounts in thousands) Cost Gains Losses Value U.S. government agency securities $ 9,004 $ 146 $ (56 ) $ 9,094 Obligations of states and political subdivisions: Taxable 505 12 - 517 Tax-exempt 69,750 1,886 (59 ) 71,577 Mortgage-backed securities in government-sponsored entities 16,574 175 (170 ) 16,579 Total debt securities 95,833 2,219 (285 ) 97,767 Equity securities in financial institutions 415 152 - 567 Total $ 96,248 $ 2,371 $ (285 ) $ 98,334 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 $ 4,689 $ 4,742 Due after one year through five years 9,884 10,193 Due after five years through ten years 9,643 9,783 Due after ten years 71,617 73,049 Total $ 95,833 $ 97,767 |
Realized Gain (Loss) on Investments [Table Text Block] | (Dollar amounts in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Proceeds from sales $ 3,787 $ - $ 6,474 $ 9,115 Gross realized gains 430 - 918 * 306 Gross realized losses (32 ) - (32 ) (3 ) |
Schedule of Unrealized Loss on Investments [Table Text Block] | September 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 $ 952 $ (9 ) $ 3,211 $ (47 ) $ 4,163 $ (56 ) Obligations of states and political subdivisions Tax-exempt 3,008 (18 ) 2,112 (41 ) 5,120 (59 ) Mortgage-backed securities in government-sponsored entities 7,997 (57 ) 3,798 (113 ) 11,795 (170 ) Total $ 11,957 $ (84 ) $ 9,121 $ (201 ) $ 21,078 $ (285 ) 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 and Lease Losses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | September 30, December 31, 2017 2016 Commercial and industrial $ 99,314 $ 60,630 Real estate - construction 40,760 23,709 Real estate - mortgage: Residential 316,191 270,830 Commercial 403,135 249,490 Consumer installment 19,141 4,481 878,541 609,140 Less: Allowance for loan and lease losses 6,852 6,598 Net loans $ 871,689 $ 602,542 |
Schedule Of Financing Receivable By Segment [Table Text Block] | Real Estate- Mortgage September 30, 2017 Commercial and industrial Real estate- construction Residential Commercial Consumer installment Total Loans: Individually evaluated for impairment $ 3,038 $ 185 $ 2,844 $ 5,788 $ 4 $ 11,859 Collectively evaluated for impairment 96,276 40,575 313,347 397,347 19,137 866,682 Total loans $ 99,314 $ 40,760 $ 316,191 $ 403,135 $ 19,141 $ 878,541 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 |
Schedule of Credit Losses for Financing Receivables, Current [Table Text Block] | Real Estate- Mortgage September 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 $ 436 $ - $ 132 $ 692 $ - $ 1,260 Collectively evaluated for impairment 291 259 1,704 2,991 347 5,592 Total ending allowance balance $ 727 $ 259 $ 1,836 $ 3,683 $ 347 $ 6,852 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 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 (439 ) - (74 ) (39 ) (384 ) (936 ) Recoveries 189 34 59 111 182 575 Provision 529 53 (967 ) 476 524 615 ALLL balance at September 30, 2017 $ 727 $ 259 $ 1,836 $ 3,683 $ 347 $ 6,852 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at December 31, 2015 $ 867 $ 276 $ 3,139 $ 2,078 $ 25 $ 6,385 Charge-offs (197 ) - (394 ) (70 ) (18 ) (679 ) Recoveries 51 - 113 140 9 313 Provision (208 ) (138 ) (97 ) 747 11 315 ALLL balance at September 30, 2016 $ 513 $ 138 $ 2,761 $ 2,895 $ 27 $ 6,334 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at June 30, 2017 $ 613 $ 202 $ 1,767 $ 4,012 $ 11 $ 6,605 Charge-offs (4 ) - - (20 ) (229 ) (253 ) Recoveries 46 11 45 111 7 220 Provision 72 46 24 (420 ) 558 280 ALLL balance at September 30, 2017 $ 727 $ 259 $ 1,836 $ 3,683 $ 347 $ 6,852 Commercial and industrial Real estate- construction Real estate- residential mortgage Real estate- commercial mortgage Consumer installment Total ALLL balance at June 30, 2016 $ 484 $ 159 $ 2,788 $ 2,909 $ 26 $ 6,366 Charge-offs (74 ) - (149 ) - (3 ) (226 ) Recoveries 4 - 82 - 3 89 Provision 99 (21 ) 40 (14 ) 1 105 ALLL balance at September 30, 2016 $ 513 $ 138 $ 2,761 $ 2,895 $ 27 $ 6,334 |
Impaired Financing Receivables [Table Text Block] | September 30, 2017 Impaired Loans Unpaid Recorded Principal Related Investment Balance Allowance With no related allowance recorded: Commercial and industrial $ 1,368 $ 1,550 $ - Real estate - construction 185 185 - Real estate - mortgage: Residential 1,875 2,092 - Commercial 2,969 3,108 - Total $ 6,397 $ 6,935 $ - With an allowance recorded: Commercial and industrial $ 1,670 $ 2,115 $ 436 Real estate - mortgage: Residential 969 1,005 132 Commercial 2,819 2,984 692 Consumer installment 4 4 - Total $ 5,462 $ 6,108 $ 1,260 Total: Commercial and industrial $ 3,038 $ 3,665 $ 436 Real estate - construction 185 185 - Real estate - mortgage: Residential 2,844 3,097 132 Commercial 5,788 6,092 692 Consumer installment 4 4 - Total $ 11,859 $ 13,043 $ 1,260 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 - Total $ 5,405 $ 5,394 $ - With an allowance recorded: Commercial and industrial $ 871 $ 868 $ 90 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 September 30, 2017 For the Nine Months Ended September 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 2,633 $ 69 $ 1,962 $ 210 Real estate - construction 431 - 738 1 Real estate - mortgage: Residential 2,988 19 3,149 69 Commercial 7,216 48 7,223 231 Consumer installment 5 1 5 1 $ 13,273 $ 137 $ 13,077 $ 512 For the Three Months Ended September 30, 2016 For the Nine Months Ended September 30, 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Total: Commercial and industrial $ 864 $ 4 $ 1,218 $ 9 Real estate - construction 1,105 3 1,404 22 Real estate - mortgage: Residential 3,389 - 3,660 36 Commercial 7,939 8 7,449 115 Consumer installment 5 - 6 - $ 13,302 $ 15 $ 13,737 $ 182 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Special Total Pass Mention Substandard Doubtful Loans September 30, 2017 Commercial and industrial $ 92,855 $ 2,188 $ 4,271 $ - $ 99,314 Real estate - construction 40,737 - 23 - 40,760 Real estate - mortgage: Residential 310,086 744 5,361 - 316,191 Commercial 393,538 4,477 5,120 - 403,135 Consumer installment 18,909 - 232 - 19,141 Total $ 856,125 $ 7,409 $ 15,007 $ - $ 878,541 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 September 30, 2017 Commercial and industrial $ 98,449 $ 632 $ - $ 233 $ 865 $ 99,314 Real estate - construction 40,760 - - - - 40,760 Real estate - mortgage: Residential 313,720 1,101 37 1,333 2,471 316,191 Commercial 400,497 1,236 1,037 365 2,638 403,135 Consumer installment 19,128 10 3 - 13 19,141 Total $ 872,554 $ 2,979 $ 1,077 $ 1,931 $ 5,987 $ 878,541 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] | September 30, 2017 90+ Days Past Nonaccrual Due and Accruing Commercial and industrial $ 1,367 $ 20 Real estate - mortgage: Residential 3,802 248 Commercial 3,356 - Total $ 8,525 $ 268 December 31, 2016 90+ Days Past Nonaccrual Due and Accruing Commercial and industrial $ 454 $ - Real estate - mortgage: Residential 4,034 - Commercial 1,409 - Consumer installment 6 - Total $ 5,903 $ - |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | For the Three Months Ended September 30, 2017 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Residential real estate 1 - 1 $ 29 $ 29 For the Nine Months Ended September 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 3 - 3 39 39 For the Nine Months Ended September 30, 2016 Number of Contracts Pre-Modification Post-Modification Term Outstanding Recorded Outstanding Recorded Troubled Debt Restructurings Modification Other Total Investment Investment Commercial and industrial 2 - 2 $ 169 $ 169 Residential real estate 1 - 1 58 58 Commercial real estate 1 - 1 311 311 |
Subsequently Defaulted [Member] | |
Notes Tables | |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | For the Three Months Ended September 30, 2016 Troubled Debt Restructurings subsequently defaulted Number of Contracts Recorded Investment Commercial and industrial 1 $ 3 Residential real estate 1 58 For the Nine Months Ended September 30, 2016 Troubled Debt Restructurings subsequently defaulted Number of Contracts Recorded Investment Commercial and industrial 2 $ 273 Real estate construction 1 58 |
Note 9 - Business Acquisition (
Note 9 - Business Acquisition (Tables) | 9 Months Ended |
Sep. 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 20,995 Middlefield Banc Corp. shares 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 $ 30,474 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 ) Other 254 Adjustments to reflect liabilities acquired at fair value: Time deposits (141 ) Deferred taxes (1,134 ) Change in control (1,718 ) 32,496 Goodwill resulting from merger $ 10,740 |
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 Other assets 997 Time deposits (30,744 ) Non-time deposits (167,300 ) Accrued interest payable (47 ) Deferred taxes (1,134 ) Other liabilities (2,754 ) 32,496 Goodwill resulting from the Liberty Bank merger $ 10,740 |
Business Acquisition, Pro Forma Information [Table Text Block] | Actual from Acquisition Date Through September 30, 2017 Actual Third Quarter 2017 (in thousands) (in thousands) Net interest income $ 7,810 $ 2,566 Noninterest income 744 219 Net income $ 2,625 $ 1,323 Pro Formas Pro Formas Nine-month period ended September 30, Three-month period ended September 30, 2017 2016 2017 2016 (in thousands, except per share data) (in thousands, except per share data) Net interest income $ 27,844 $ 25,790 $ 9,214 $ 8,868 Noninterest income 4,002 4,141 1,380 1,538 Net income $ 6,052 $ 6,416 $ 3,479 $ 2,691 Pro forma earnings per share: Basic $ 2.04 $ 3.12 $ 1.17 $ 1.31 Diluted $ 2.03 $ 3.10 $ 1.17 $ 1.30 |
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 93 2018 348 2019 341 2020 332 2021 321 2022 309 2023 296 2024 281 2025 264 2026 253 2,838 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | 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 | $ | $ 42,168,000 |
Note 2 - Stock-based Compensa28
Note 2 - Stock-based Compensation (Details Textual) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 0 | 0 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 0 | $ 0 |
Note 2 - Stock-based Compensa29
Note 2 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Outstanding stock options, beginning balance (in shares) | 29,324 | 31,949 |
Outstanding stock options weighted-average exercise price, beginning balance (in dollars per share) | $ 23.67 | $ 25.03 |
Exercised stock options (in shares) | (7,949) | |
Exercised stock options weighted-average exercise price (in dollars per share) | $ 29.87 | |
Outstanding stock options, ending balance (in shares) | 21,375 | 31,949 |
Outstanding stock options weighted-average exercise price, ending balance (in dollars per share) | $ 21.37 | $ 25.03 |
Exercisable stock options (in shares) | 21,375 | 31,949 |
Exercisable stock options weighted-average exercise price (in dollars per share) | $ 21.37 | $ 25.03 |
Note 3 - Earnings Per Share (De
Note 3 - Earnings Per Share (Details Textual) - $ / shares | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 21,375 | 31,949 | 21,375 | 31,949 | 29,324 | 31,949 |
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 | $ 40.24 | $ 37 | $ 40.24 | ||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 11,418 | 8,643 | 12,592 | 8,876 | ||
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 | 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Weighted-average common shares outstanding (in shares) | 3,598,500 | 2,633,752 | 3,352,316 | 2,445,821 |
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) | 3,212,335 | 2,247,587 | 2,966,151 | 2,059,656 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 11,418 | 8,643 | 12,592 | 8,876 |
Weighted-average common shares and common stock equivalents used to calculate diluted earnings per share (in shares) | 3,223,753 | 2,256,230 | 2,978,743 | 2,068,532 |
Note 4 - Fair Value Disclosur32
Note 4 - Fair Value Disclosure Measurements (Details Textual) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Estimated Selling Costs of Impaired Loans | $ 437,000 |
Note 4 - Fair Value Disclosur33
Note 4 - Fair Value Disclosure Measurements - Assets Measured on a Recurring Basis (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Investment securities available for sale, at fair value | $ 98,334,000 | $ 114,376,000 |
Impaired loans | 11,859,000 | 12,430,000 |
Other real estate owned | 557,000 | 934,000 |
Estimate of Fair Value Measurement [Member] | ||
Investment securities available for sale, at fair value | 98,334,000 | 114,376,000 |
Impaired loans | 1,620,000 | 6,498,000 |
Other real estate owned | 81,000 | 511,000 |
US Government Agencies Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 9,094,000 | 10,236,000 |
US States and Political Subdivisions Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 72,094,000 | 81,223,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Investment securities available for sale, at fair value | 16,579,000 | 20,069,000 |
Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 97,767,000 | 113,237,000 |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Investment securities available for sale, at fair value | 1,709,000 | |
Equity Securities In Financial Institutions [Member] | ||
Investment securities available for sale, at fair value | 567,000 | 1,139,000 |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Investment securities available for sale, at fair value | 98,334,000 | 114,376,000 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Investment securities available for sale, at fair value | 98,334,000 | 114,376,000 |
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 | 9,094,000 | 10,236,000 |
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 | 72,094,000 | 81,223,000 |
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 | 16,579,000 | 20,069,000 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 97,767,000 | 113,237,000 |
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 | 1,709,000 | |
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 | 567,000 | 1,139,000 |
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Investment securities available for sale, at fair value | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Impaired loans | 1,620,000 | 6,498,000 |
Other real estate owned | $ 81,000 | $ 511,000 |
Note 4 - Fair Value Disclosur34
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] - Appraisal Adjustments [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | ||
Impaired Loans [Member] | |||
Fair value estimate | $ 1,620 | $ 1,570 | |
Valuation Techniques / Unobservable Input | [1],[2] | Appraisal of collateral / Appraisal adjustments | Appraisal of collateral / Appraisal adjustments |
Impaired Loans [Member] | Minimum [Member] | |||
Discount rate | 3.30% | 0.00% | |
Impaired Loans [Member] | Maximum [Member] | |||
Discount rate | 8.30% | 59.70% | |
Other Real Estate Owned [Member] | |||
Fair value estimate | $ 81 | $ 511 | |
Valuation Techniques / Unobservable Input | [1],[2] | Appraisal of collateral / Appraisal adjustments | Appraisal of collateral / Appraisal adjustments |
Other Real Estate Owned [Member] | Minimum [Member] | |||
Discount rate | 0.00% | 0.00% | |
Other Real Estate Owned [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 III inputs which are not identifiable, less any associated allowance. |
Note 4 - Fair Value Disclosur35
Note 4 - Fair Value Disclosure Measurements - Estimated Fair Value of the Company's Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financial assets: | ||
Investment securities available for sale, at fair value | $ 98,334 | $ 114,376 |
Investment securities available for sale, at fair value | 98,334 | 114,376 |
Reported Value Measurement [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 48,931 | 32,495 |
Investment securities available for sale, at fair value | 98,334 | 114,376 |
Loans held for sale | 5,930 | 634 |
Net loans | 871,689 | 602,542 |
Bank-owned life insurance | 15,542 | 13,540 |
Federal Home Loan Bank stock | 3,589 | 2,204 |
Accrued interest receivable | 3,177 | 2,426 |
Investment securities available for sale, at fair value | 98,334 | 114,376 |
Financial liabilities: | ||
Deposits | 897,655 | 629,934 |
Short-term borrowings | 20,274 | 68,359 |
Other borrowings | 39,273 | 9,437 |
Accrued interest payable | 566 | 395 |
Estimate of Fair Value Measurement [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 48,931 | 32,495 |
Investment securities available for sale, at fair value | 98,334 | 114,376 |
Loans held for sale | 5,930 | 634 |
Net loans | 879,206 | 604,447 |
Bank-owned life insurance | 15,542 | 13,540 |
Federal Home Loan Bank stock | 3,589 | 2,204 |
Accrued interest receivable | 3,177 | 2,426 |
Investment securities available for sale, at fair value | 98,334 | 114,376 |
Financial liabilities: | ||
Deposits | 898,318 | 630,371 |
Short-term borrowings | 20,274 | 68,359 |
Other borrowings | 39,306 | 9,512 |
Accrued interest payable | 566 | 395 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 48,931 | 32,495 |
Investment securities available for sale, at fair value | ||
Loans held for sale | 4,995 | |
Net loans | ||
Bank-owned life insurance | 15,542 | 13,540 |
Federal Home Loan Bank stock | 3,589 | 2,204 |
Accrued interest receivable | 3,177 | 2,426 |
Investment securities available for sale, at fair value | ||
Financial liabilities: | ||
Deposits | 646,206 | 440,500 |
Short-term borrowings | 20,274 | 68,359 |
Other borrowings | ||
Accrued interest payable | 566 | 395 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | ||
Investment securities available for sale, at fair value | 98,334 | 114,376 |
Loans held for sale | 935 | 634 |
Net loans | ||
Bank-owned life insurance | ||
Federal Home Loan Bank stock | ||
Accrued interest receivable | ||
Investment securities available for sale, at fair value | 98,334 | 114,376 |
Financial liabilities: | ||
Deposits | ||
Short-term borrowings | ||
Other borrowings | ||
Accrued interest payable | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | ||
Investment securities available for sale, at fair value | ||
Loans held for sale | ||
Net loans | 879,206 | 604,447 |
Bank-owned life insurance | ||
Federal Home Loan Bank stock | ||
Accrued interest receivable | ||
Investment securities available for sale, at fair value | ||
Financial liabilities: | ||
Deposits | 252,112 | 189,871 |
Short-term borrowings | ||
Other borrowings | 39,306 | 9,512 |
Accrued interest payable |
Note 5 - Accumulate Other Compr
Note 5 - Accumulate Other Comprehensive Income - Changes in Accumulated Other Comprehensive Income (Loss) by Component, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Balance | [1] | $ 1,815 | $ 3,879 | $ 1,201 | $ 2,395 |
Other comprehensive income before reclassification | [1] | (175) | (263) | 761 | 1,421 |
Amount reclassified from accumulated other comprehensive income | [1] | (263) | (585) | (200) | |
Total other comprehensive income (loss) | [1] | (438) | (263) | 176 | 1,221 |
Amount reclassified from accumulated other comprehensive income | [1] | (263) | (585) | (200) | |
Balance | [1] | $ 1,377 | $ 3,616 | $ 1,377 | $ 3,616 |
[1] | All amounts are net of tax. Amounts in parentheses indicate debits to accumulated other comprehensive income. |
Note 5 - Accumulated Other Co37
Note 5 - Accumulated Other Comprehensive Income - Significant Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Unrealized gains on available-for-sale securities | [1] | $ 398 | $ 886 | $ 303 | |
Income taxes | [1] | (135) | (301) | (103) | |
Net of tax | [1] | $ 263 | $ 585 | $ 200 | |
[1] | Amounts in parentheses indicate expenses and other amounts indicate income. |
Note 6 - Investment Securitie38
Note 6 - Investment Securities Available for Sale (Details Textual) - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Available-for-sale Securities Pledged as Collateral | $ 64,900,000 | $ 60,300,000 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 28 | ||
Available-for-sale Securities, Percentage of Portfolio | 99.00% | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held | $ 0 | $ 0 | |
Pledged to Secure Deposits and Other Purposes Required by Law [Member] | |||
Restricted Cash | 4,500,000 | ||
Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Remeasurement Gain | $ 488,000 |
Note 6 - Investment Securitie39
Note 6 - Investment Securities Available for Sale - Amortized Cost and Fair Values of Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized cost | $ 96,248 | $ 112,557 |
Gross unrealized gains | 2,371 | 2,702 |
Gross unrealized losses | (285) | (883) |
Investment securities available for sale, at fair value | 98,334 | 114,376 |
US Government Agencies Debt Securities [Member] | ||
Amortized cost | 9,004 | 10,158 |
Gross unrealized gains | 146 | 174 |
Gross unrealized losses | (56) | (96) |
Investment securities available for sale, at fair value | 9,094 | 10,236 |
US States and Political Subdivisions Debt Securities [Member] | ||
Investment securities available for sale, at fair value | 72,094 | 81,223 |
US States and Political Subdivisions Debt Securities [Member] | Taxable [Member] | ||
Amortized cost | 505 | 1,615 |
Gross unrealized gains | 12 | 129 |
Gross unrealized losses | (4) | |
Investment securities available for sale, at fair value | 517 | 1,740 |
US States and Political Subdivisions Debt Securities [Member] | Tax Exempt [Member] | ||
Amortized cost | 69,750 | 78,327 |
Gross unrealized gains | 1,886 | 1,678 |
Gross unrealized losses | (59) | (522) |
Investment securities available for sale, at fair value | 71,577 | 79,483 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Amortized cost | 16,574 | 20,128 |
Gross unrealized gains | 175 | 202 |
Gross unrealized losses | (170) | (261) |
Investment securities available for sale, at fair value | 16,579 | 20,069 |
Debt Securities [Member] | ||
Amortized cost | 95,833 | 111,807 |
Gross unrealized gains | 2,219 | 2,313 |
Gross unrealized losses | (285) | (883) |
Investment securities available for sale, at fair value | 97,767 | 113,237 |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
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] | ||
Amortized cost | 415 | 750 |
Gross unrealized gains | 152 | 389 |
Gross unrealized losses | ||
Investment securities available for sale, at fair value | $ 567 | $ 1,139 |
Note 6 - Investment Securitie40
Note 6 - Investment Securities Available for Sale - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Due in one year or less, amortized costs | $ 4,689 |
Due in one year or less, fair value | 4,742 |
Due after one year through five years, amortized costs | 9,884 |
Due after one year through five years, fair value | 10,193 |
Due after five years through ten years, amortized costs | 9,643 |
Due after five years through ten years, fair value | 9,783 |
Due after ten years, amortized costs | 71,617 |
Due after ten years, fair value | 73,049 |
Amortized costs | 95,833 |
Fair Value | $ 97,767 |
Note 6 - Investment Securitie41
Note 6 - Investment Securities Available for Sale - Sales of Available for Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Proceeds from sales | $ 3,787 | $ 6,474 | $ 9,115 | ||
Gross realized gains | 430 | 918 | [1] | 306 | |
Gross realized losses | $ (32) | $ (32) | $ (3) | ||
[1] | 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 $488,000, which was recorded in Investment Securities Gains on the consolidated Income Statement for the nine months ended September 30, 2017. |
Note 6 - Investment Securitie42
Note 6 - Investment Securities Available for Sale - Gross Unrealized Losses and Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Less than Twelve Months, Fair Value | $ 11,957 | $ 36,925 |
Less than Twelve Months, Gross Unrealized Losses | (84) | (699) |
Twelve Months or Greater, Fair Value | 9,121 | 5,754 |
Twelve Months or Greater, Gross Unrealized Losses | (201) | (184) |
Total, Fair Value | 21,078 | 42,679 |
Total, Gross Unrealized Losses | (285) | (883) |
US Government Agencies Debt Securities [Member] | ||
Less than Twelve Months, Fair Value | 952 | 3,803 |
Less than Twelve Months, Gross Unrealized Losses | (9) | (47) |
Twelve Months or Greater, Fair Value | 3,211 | 1,316 |
Twelve Months or Greater, Gross Unrealized Losses | (47) | (49) |
Total, Fair Value | 4,163 | 5,119 |
Total, Gross Unrealized Losses | (56) | (96) |
US States and Political Subdivisions Debt Securities [Member] | Tax Exempt [Member] | ||
Less than Twelve Months, Fair Value | 3,008 | 23,554 |
Less than Twelve Months, Gross Unrealized Losses | (18) | (522) |
Twelve Months or Greater, Fair Value | 2,112 | 0 |
Twelve Months or Greater, Gross Unrealized Losses | (41) | |
Total, Fair Value | 5,120 | 23,554 |
Total, Gross Unrealized Losses | (59) | (522) |
US States and Political Subdivisions Debt Securities [Member] | Taxable [Member] | ||
Less than Twelve Months, Fair Value | 502 | |
Less than Twelve Months, Gross Unrealized Losses | (4) | |
Twelve Months or Greater, Fair Value | ||
Twelve Months or Greater, Gross Unrealized Losses | ||
Total, Fair Value | 502 | |
Total, Gross Unrealized Losses | (4) | |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Less than Twelve Months, Fair Value | 7,997 | 9,066 |
Less than Twelve Months, Gross Unrealized Losses | (57) | (126) |
Twelve Months or Greater, Fair Value | 3,798 | 4,438 |
Twelve Months or Greater, Gross Unrealized Losses | (113) | (135) |
Total, Fair Value | 11,795 | 13,504 |
Total, Gross Unrealized Losses | $ (170) | $ (261) |
Note 7 - Loans and Related Al43
Note 7 - Loans and Related Allowance for Loan and Lease Losses (Details Textual) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Loans and Leases Receivable, Deferred Income | $ 2,000,000 | $ 2,000,000 | $ 1,700,000 | |||
Financing Receivable, Modifications, Recorded Investment | 2,400,000 | 2,400,000 | 2,700,000 | |||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 398,000 | $ 309,000 | ||||
Provision for Loan, Lease, and Other Losses | $ 280,000 | $ 105,000 | $ 615,000 | $ 315,000 | ||
Financing Receivable, Modifications, Number of Contracts | 0 | |||||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 33,000 | |||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 1 | 0 | |||
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 | ||||
Residential Loan [Member] | Real Estate Mortgage Portfolio Segment [Member] | ||||||
Provision for Loan, Lease, and Other Losses | $ 24,000 | $ 40,000 | $ (967,000) | $ (97,000) | ||
Financing Receivable, Modifications, Number of Contracts | 1 | 3 | 1 | |||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 58,000 | |||||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 1 | |||||
Commercial Loans [Member] | Real Estate Mortgage Portfolio Segment [Member] | ||||||
Provision for Loan, Lease, and Other Losses | $ (420,000) | $ (14,000) | $ 476,000 | $ 747,000 |
Note 7 - Loans and Related Al44
Note 7 - Loans and Related Allowance for Loan and Lease Losses - Major Classifications of Net Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable Gross | $ 878,541 | $ 609,140 | ||||
Less: Allowance for loan and lease losses | 6,852 | $ 6,605 | 6,598 | $ 6,334 | $ 6,366 | $ 6,385 |
Net loans | 871,689 | 602,542 | ||||
Commercial And Industrial [Member] | ||||||
Financing Receivable Gross | 99,314 | 60,630 | ||||
Less: Allowance for loan and lease losses | 727 | 613 | 448 | 513 | 484 | 867 |
Real Estate Construction Porfolio Segment [Member] | ||||||
Financing Receivable Gross | 40,760 | 23,709 | ||||
Less: Allowance for loan and lease losses | 259 | 202 | 172 | 138 | 159 | 276 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||||
Financing Receivable Gross | 316,191 | 270,830 | ||||
Less: Allowance for loan and lease losses | 1,836 | 1,767 | 2,818 | 2,761 | 2,788 | 3,139 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||||||
Financing Receivable Gross | 403,135 | 249,490 | ||||
Less: Allowance for loan and lease losses | 3,683 | 4,012 | 3,135 | 2,895 | 2,909 | 2,078 |
Consumer Portfolio Segment [Member] | ||||||
Financing Receivable Gross | 19,141 | 4,481 | ||||
Less: Allowance for loan and lease losses | $ 347 | $ 11 | $ 25 | $ 27 | $ 26 | $ 25 |
Note 7 - Loans and Related Al45
Note 7 - Loans and Related Allowance for Loan and Lease Losses - Primary Segments of the Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Individually evaluated for impairment | $ 11,859 | $ 12,430 |
Collectively evaluated for impairment | 866,682 | 596,710 |
Total loans | 878,541 | 609,140 |
Commercial And Industrial [Member] | ||
Individually evaluated for impairment | 3,038 | 1,190 |
Collectively evaluated for impairment | 96,276 | 59,440 |
Total loans | 99,314 | 60,630 |
Real Estate Construction Porfolio Segment [Member] | ||
Individually evaluated for impairment | 185 | 913 |
Collectively evaluated for impairment | 40,575 | 22,796 |
Total loans | 40,760 | 23,709 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Individually evaluated for impairment | 2,844 | 3,135 |
Collectively evaluated for impairment | 313,347 | 267,695 |
Total loans | 316,191 | 270,830 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Individually evaluated for impairment | 5,788 | 7,187 |
Collectively evaluated for impairment | 397,347 | 242,303 |
Total loans | 403,135 | 249,490 |
Consumer Portfolio Segment [Member] | ||
Individually evaluated for impairment | 4 | 5 |
Collectively evaluated for impairment | 19,137 | 4,476 |
Total loans | $ 19,141 | $ 4,481 |
Note 7 - Loans and Related Al46
Note 7 - Loans and Related Allowance of Loan and Lease Losses - Allowance for Loan Losses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | |
Individually evaluated for impairment | $ 1,260,000 | $ 527,000 | ||||
Collectively evaluated for impairment | 5,592,000 | 6,071,000 | ||||
Total ending allowance balance | $ 6,852,000 | $ 6,334,000 | $ 6,852,000 | $ 6,385,000 | 6,852,000 | 6,598,000 |
ALLL balance, period start | 6,605,000 | 6,366,000 | 6,598,000 | 6,385,000 | ||
Charge-offs | (253,000) | (226,000) | (936,000) | (679,000) | ||
Recoveries | 220,000 | 89,000 | 575,000 | 313,000 | ||
Provision for Loan, Lease, and Other Losses | 280,000 | 105,000 | 615,000 | 315,000 | ||
ALLL balance, period end | 6,852,000 | 6,334,000 | 6,852,000 | 6,334,000 | ||
Commercial And Industrial [Member] | ||||||
Individually evaluated for impairment | 436,000 | 90,000 | ||||
Collectively evaluated for impairment | 291,000 | 358,000 | ||||
Total ending allowance balance | 727,000 | 513,000 | 727,000 | 867,000 | 727,000 | 448,000 |
ALLL balance, period start | 613,000 | 484,000 | 448,000 | 867,000 | ||
Charge-offs | (4,000) | (74,000) | (439,000) | (197,000) | ||
Recoveries | 46,000 | 4,000 | 189,000 | 51,000 | ||
Provision for Loan, Lease, and Other Losses | 72,000 | 99,000 | 529,000 | (208,000) | ||
ALLL balance, period end | 727,000 | 513,000 | 727,000 | 513,000 | ||
Real Estate Construction Porfolio Segment [Member] | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 259,000 | 172,000 | ||||
Total ending allowance balance | 259,000 | 138,000 | 259,000 | 276,000 | 259,000 | 172,000 |
ALLL balance, period start | 202,000 | 159,000 | 172,000 | 276,000 | ||
Charge-offs | ||||||
Recoveries | 11,000 | 34,000 | ||||
Provision for Loan, Lease, and Other Losses | 46,000 | (21,000) | 53,000 | (138,000) | ||
ALLL balance, period end | 259,000 | 138,000 | 259,000 | 138,000 | ||
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||||
Individually evaluated for impairment | 132,000 | 251,000 | ||||
Collectively evaluated for impairment | 1,704,000 | 2,567,000 | ||||
Total ending allowance balance | 1,836,000 | 2,761,000 | 1,836,000 | 3,139,000 | 1,836,000 | 2,818,000 |
ALLL balance, period start | 1,767,000 | 2,788,000 | 2,818,000 | 3,139,000 | ||
Charge-offs | (149,000) | (74,000) | (394,000) | |||
Recoveries | 45,000 | 82,000 | 59,000 | 113,000 | ||
Provision for Loan, Lease, and Other Losses | 24,000 | 40,000 | (967,000) | (97,000) | ||
ALLL balance, period end | 1,836,000 | 2,761,000 | 1,836,000 | 2,761,000 | ||
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||||||
Individually evaluated for impairment | 692,000 | 186,000 | ||||
Collectively evaluated for impairment | 2,991,000 | 2,949,000 | ||||
Total ending allowance balance | 3,683,000 | 2,895,000 | 3,683,000 | 2,078,000 | 3,683,000 | 3,135,000 |
ALLL balance, period start | 4,012,000 | 2,909,000 | 3,135,000 | 2,078,000 | ||
Charge-offs | (20,000) | (39,000) | (70,000) | |||
Recoveries | 111,000 | 111,000 | 140,000 | |||
Provision for Loan, Lease, and Other Losses | (420,000) | (14,000) | 476,000 | 747,000 | ||
ALLL balance, period end | 3,683,000 | 2,895,000 | 3,683,000 | 2,895,000 | ||
Consumer Portfolio Segment [Member] | ||||||
Individually evaluated for impairment | ||||||
Collectively evaluated for impairment | 347,000 | 25,000 | ||||
Total ending allowance balance | 347,000 | 27,000 | 347,000 | 25,000 | $ 347,000 | $ 25,000 |
ALLL balance, period start | 11,000 | 26,000 | 25,000 | 25,000 | ||
Charge-offs | (229,000) | (3,000) | (384,000) | (18,000) | ||
Recoveries | 7,000 | 3,000 | 182,000 | 9,000 | ||
Provision for Loan, Lease, and Other Losses | 558,000 | 1,000 | 524,000 | 11,000 | ||
ALLL balance, period end | $ 347,000 | $ 27,000 | $ 347,000 | $ 27,000 |
Note 7 - Loans and Related Al47
Note 7 - Loans and Related Allowance for Loan and Lease Losses - Impaired Loans by Class (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Recorded investment, with no related allowance | $ 6,397 | $ 5,405 |
Unpaid principal balance, with no related allowance | 6,935 | 5,394 |
Recorded investment, with related allowance | 5,462 | 7,025 |
Unpaid principal balance, with related allowance | 6,108 | 7,011 |
Related allowance | 1,260 | 527 |
Recorded investment | 11,859 | 12,430 |
Unpaid principal balance | 13,043 | 12,405 |
Commercial Loans [Member] | ||
Recorded investment, with related allowance | 2,819 | |
Unpaid principal balance, with related allowance | 2,984 | |
Related allowance | 692 | |
Commercial And Industrial [Member] | ||
Recorded investment, with no related allowance | 1,368 | 319 |
Unpaid principal balance, with no related allowance | 1,550 | 318 |
Recorded investment, with related allowance | 1,670 | 871 |
Unpaid principal balance, with related allowance | 2,115 | 868 |
Related allowance | 436 | 90 |
Recorded investment | 3,038 | 1,190 |
Unpaid principal balance | 3,665 | 1,186 |
Real Estate Construction Porfolio Segment [Member] | ||
Recorded investment, with no related allowance | 185 | 913 |
Unpaid principal balance, with no related allowance | 185 | 909 |
Recorded investment, with related allowance | 185 | 913 |
Unpaid principal balance, with related allowance | 185 | 909 |
Related allowance | ||
Real Estate Construction Porfolio Segment [Member] | Residential Loan [Member] | ||
Recorded investment, with related allowance | 969 | |
Unpaid principal balance, with related allowance | 1,005 | |
Related allowance | 132 | |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Recorded investment, with no related allowance | 1,875 | 2,142 |
Unpaid principal balance, with no related allowance | 2,092 | 2,140 |
Recorded investment, with related allowance | 993 | |
Unpaid principal balance, with related allowance | 991 | |
Related allowance | 132 | 251 |
Recorded investment | 2,844 | 3,135 |
Unpaid principal balance | 3,097 | 3,131 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Recorded investment, with no related allowance | 2,969 | 2,031 |
Unpaid principal balance, with no related allowance | 3,108 | 2,027 |
Recorded investment, with related allowance | 5,156 | |
Unpaid principal balance, with related allowance | 5,147 | |
Related allowance | 692 | 186 |
Recorded investment | 5,788 | 7,187 |
Unpaid principal balance | 6,092 | 7,174 |
Consumer Portfolio Segment [Member] | ||
Recorded investment, with no related allowance | 5 | |
Unpaid principal balance, with no related allowance | 5 | |
Recorded investment, with related allowance | 4 | 5 |
Unpaid principal balance, with related allowance | 4 | $ 5 |
Related allowance | ||
Recorded investment | 4 | |
Unpaid principal balance | $ 4 |
Note 7 - Loans and Related Al48
Note 7 - Loans and Related Allowance for Loan and Lease Losses - Additional Information on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Average recorded investment | $ 13,273 | $ 13,302 | $ 13,077 | $ 13,737 |
Interest income recognized | 137 | 15 | 512 | 182 |
Commercial And Industrial [Member] | ||||
Average recorded investment | 2,633 | 864 | 1,962 | 1,218 |
Interest income recognized | 69 | 4 | 210 | 9 |
Real Estate Construction Porfolio Segment [Member] | ||||
Average recorded investment | 431 | 1,105 | 738 | 1,404 |
Interest income recognized | 3 | 1 | 22 | |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||
Average recorded investment | 2,988 | 3,389 | 3,149 | 3,660 |
Interest income recognized | 19 | 69 | 36 | |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||||
Average recorded investment | 7,216 | 7,939 | 7,223 | 7,449 |
Interest income recognized | 48 | 8 | 231 | 115 |
Consumer Portfolio Segment [Member] | ||||
Average recorded investment | 5 | 5 | 5 | 6 |
Interest income recognized | $ 1 | $ 1 |
Note 7 - Loans and Related Al49
Note 7 - Loans and Related Allowance for Loan and Lease Losses - Classes of the Loan Portfolio Summarized by Credit Quality (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Loans, total | $ 878,541 | $ 609,140 |
Commercial And Industrial [Member] | ||
Loans, total | 99,314 | 60,630 |
Real Estate Construction Porfolio Segment [Member] | ||
Loans, total | 40,760 | 23,709 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, total | 316,191 | 270,830 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, total | 403,135 | 249,490 |
Consumer Portfolio Segment [Member] | ||
Loans, total | 19,141 | 4,481 |
Pass [Member] | ||
Loans, total | 856,125 | 591,706 |
Pass [Member] | Commercial And Industrial [Member] | ||
Loans, total | 92,855 | 58,539 |
Pass [Member] | Real Estate Construction Porfolio Segment [Member] | ||
Loans, total | 40,737 | 23,541 |
Pass [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, total | 310,086 | 264,481 |
Pass [Member] | Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, total | 393,538 | 240,678 |
Pass [Member] | Consumer Portfolio Segment [Member] | ||
Loans, total | 18,909 | 4,467 |
Special Mention [Member] | ||
Loans, total | 7,409 | 5,657 |
Special Mention [Member] | Commercial And Industrial [Member] | ||
Loans, total | 2,188 | 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 | 744 | 428 |
Special Mention [Member] | Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, total | 4,477 | 4,422 |
Substandard [Member] | ||
Loans, total | 15,007 | 11,777 |
Substandard [Member] | Commercial And Industrial [Member] | ||
Loans, total | 4,271 | 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 | 5,361 | 5,921 |
Substandard [Member] | Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, total | 5,120 | 4,390 |
Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Loans, total | 232 | $ 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 and Lease Losses - Past Due Financing Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Loans, current balance | $ 872,554 | $ 605,703 |
Loans, past due | 5,987 | 3,437 |
Loans, total | 878,541 | 609,140 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 2,979 | 2,018 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 1,077 | 219 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans, past due | 1,931 | 1,200 |
Commercial And Industrial [Member] | ||
Loans, current balance | 98,449 | 60,407 |
Loans, past due | 865 | 223 |
Loans, total | 99,314 | 60,630 |
Commercial And Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 632 | 17 |
Commercial And Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 2 | |
Commercial And Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Loans, past due | 233 | 204 |
Real Estate Construction Porfolio Segment [Member] | ||
Loans, current balance | 40,760 | 23,709 |
Loans, past due | 0 | 0 |
Loans, total | 40,760 | 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, current balance | 313,720 | 268,041 |
Loans, past due | 2,471 | 2,789 |
Loans, total | 316,191 | 270,830 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, current balance | 400,497 | 249,081 |
Loans, past due | 2,638 | 409 |
Loans, total | 403,135 | 249,490 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Loan [Member] | ||
Loans, past due | 1,101 | 1,909 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial Loans [Member] | ||
Loans, past due | 1,236 | 92 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Loan [Member] | ||
Loans, past due | 37 | 207 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial Loans [Member] | ||
Loans, past due | 1,037 | |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Loan [Member] | ||
Loans, past due | 1,333 | 673 |
Real Estate Mortgage Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Loans [Member] | ||
Loans, past due | 365 | 317 |
Consumer Portfolio Segment [Member] | ||
Loans, current balance | 19,128 | 4,465 |
Loans, past due | 13 | 16 |
Loans, total | 19,141 | 4,481 |
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Loans, past due | 10 | |
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Loans, past due | 3 | 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 and Lease Losses - Classes of the Loan Portfolio Summarized by Nonaccrual Loans and Still Accruing (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Loans, nonacrrual status | $ 8,525 | $ 5,903 |
Loans, 90+ days past due and accruing | 268 | |
Commercial And Industrial [Member] | ||
Loans, nonacrrual status | 1,367 | 454 |
Loans, 90+ days past due and accruing | 20 | 0 |
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||
Loans, nonacrrual status | 3,802 | 4,034 |
Loans, 90+ days past due and accruing | 248 | 0 |
Real Estate Mortgage Portfolio Segment [Member] | Commercial Loans [Member] | ||
Loans, nonacrrual status | 3,356 | 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 and Lease Losses - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016 | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Financing Receivable, Modifications, Number of Contracts | 0 | |||
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||
Financing Receivable, Modifications, Number of Contracts | 1 | 3 | 1 | |
Pre-modification outstanding recorded investment | $ 29 | $ 39 | $ 58 | |
Post-modification outstanding recorded investment | $ 29 | $ 39 | $ 58 | |
Commercial And Industrial [Member] | ||||
Financing Receivable, Modifications, Number of Contracts | 2 | 2 | ||
Pre-modification outstanding recorded investment | $ 954 | $ 169 | ||
Post-modification outstanding recorded investment | $ 955 | $ 169 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Modifications, Number of Contracts | 1 | |||
Pre-modification outstanding recorded investment | $ 311 | |||
Post-modification outstanding recorded investment | $ 311 | |||
Extended Maturity [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||
Financing Receivable, Modifications, Number of Contracts | 1 | 3 | 1 | |
Extended Maturity [Member] | Commercial And Industrial [Member] | ||||
Financing Receivable, Modifications, Number of Contracts | 1 | 2 | ||
Extended Maturity [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Modifications, Number of Contracts | 1 | |||
Other Restructurings [Member] | Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | ||||
Financing Receivable, Modifications, Number of Contracts | ||||
Other Restructurings [Member] | Commercial And Industrial [Member] | ||||
Financing Receivable, Modifications, Number of Contracts | 1 | |||
Other Restructurings [Member] | Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Modifications, Number of Contracts |
Note 7 - Loans and Related Al53
Note 7 - Loans and Related Allowance for Loan and Lease Losses - Troubled Debt Restructurings Subsequently Defaulted (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017 | Sep. 30, 2016USD ($) | |
Number of contracts, subsequently defaulted | 0 | 1 | 0 | ||
Recorded investment, subsequently defaulted | $ 33,000 | ||||
Commercial And Industrial [Member] | |||||
Number of contracts, subsequently defaulted | 1 | 2 | |||
Recorded investment, subsequently defaulted | $ 3,000 | $ 273,000 | |||
Real Estate Mortgage Portfolio Segment [Member] | Residential Loan [Member] | |||||
Number of contracts, subsequently defaulted | 1 | ||||
Recorded investment, subsequently defaulted | $ 58,000 | ||||
Real Estate Construction Porfolio Segment [Member] | |||||
Number of contracts, subsequently defaulted | 1 | ||||
Recorded investment, subsequently defaulted | $ 58,000 |
Note 8 - Other Real Estate Ow54
Note 8 - Other Real Estate Owned ("OREO") (Details Textual) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Real Estate Acquired Through Foreclosure | $ 557,000 | $ 934,000 |
Mortgage Loans in Process of Foreclosure, Amount | $ 1,000,000 |
Note 9 - Business Acquisition55
Note 9 - Business Acquisition (Details Textual) - USD ($) | Jan. 12, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Jun. 30, 2016 |
Goodwill | $ 15,299,000 | $ 15,299,000 | $ 15,299,000 | $ 4,559,000 | ||||
Business Combination, Acquisition Related Costs | 338,000 | 1,032,000 | ||||||
Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 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 | |||||||
Goodwill | $ 10,740,000 | |||||||
Goodwill, Impairment Loss | 0 | |||||||
Goodwill, Purchase Accounting Adjustments | 347,000 | |||||||
Business Combination, Acquisition Related Costs | 338,000 | 1,032,000 | ||||||
Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | Core Deposits [Member] | ||||||||
Finite-Lived Core Deposits, Gross | 2,838,000 | 2,838,000 | 2,838,000 | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 249,000 | $ 249,000 | $ 249,000 |
Note 9 - Business Acquisition -
Note 9 - Business Acquisition - Purchase Price and Adjustments (Details) - USD ($) | Jan. 12, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 |
Goodwill | $ 15,299,000 | $ 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 | |||
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 | ||
Liberty Bank shareholders equity | 30,474,000 | |||
Allowance for loan loss | 3,257,000 | |||
Core deposit intangible | 3,087,000 | |||
Loans - interest rate | 578,000 | |||
Loans - general credit | (2,161,000) | |||
Other | 254,000 | |||
Time deposits | (141,000) | |||
Deferred taxes | (1,134,000) | |||
Change in control | (1,718,000) | |||
32,496,000 | ||||
Goodwill | $ 10,740,000 |
Note 9 - Business Acquisition57
Note 9 - Business Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) | Jan. 12, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 |
Net assets acquired: | ||||
Goodwill | $ 15,299,000 | $ 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 | |||
Other assets | 997,000 | |||
Time deposits | (30,744,000) | |||
Non-time deposits | (167,300,000) | |||
Accrued interest payable | (47,000) | |||
Deferred taxes | (1,134,000) | |||
Other liabilities | (2,754,000) | |||
32,496,000 | ||||
Goodwill | $ 10,740,000 |
Note 9 - Business Acquisition58
Note 9 - Business Acquisition - Schedule of Future Amortization Expenses for Core Deposits Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
$ 2,848 | $ 36 | |
Merger of Liberty Bank, N.A. into The Middlefield Banking Company [Member] | Core Deposits [Member] | ||
Remaining 2,017 | 93 | |
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 | |
$ 2,838 |
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 | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net interest income | $ 2,566 | $ 7,810 | |||
Noninterest income | 219 | 744 | |||
Net income | 1,323 | $ 2,625 | |||
Net interest income | 9,214 | $ 8,868 | $ 27,844 | $ 25,790 | |
Noninterest income | 1,380 | 1,538 | 4,002 | 4,141 | |
Net income | $ 3,479 | $ 2,691 | $ 6,052 | $ 6,416 | |
Basic pro forma (in dollars per share) | $ 1.17 | $ 1.31 | $ 2.04 | $ 3.12 | |
Diluted pro forma (in dollars per share) | $ 1.17 | $ 1.30 | $ 2.03 | $ 3.10 |