Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 06, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'ISABELLA BANK CORP | ' |
Entity Central Index Key | '0000842517 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 7,750,559 |
Entity Filer Category | 'Accelerated Filer | ' |
Interim_Condensed_Consolidated
Interim Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents | ' | ' |
Cash and demand deposits due from banks | $26,484 | $21,755 |
Interest bearing balances due from banks | 896 | 19,803 |
Total cash and cash equivalents | 27,380 | 41,558 |
Certificates of deposit held in other financial institutions | 580 | 580 |
Trading securities | 0 | 525 |
AFS securities (amortized cost of $546,102 in 2014 and $517,614 in 2013) | 550,518 | 512,062 |
Mortgage loans AFS | 340 | 1,104 |
Loans | ' | ' |
Commercial | 407,791 | 392,104 |
Agricultural | 97,661 | 92,589 |
Residential real estate | 278,545 | 289,931 |
Consumer | 32,310 | 33,413 |
Gross loans | 816,307 | 808,037 |
Less allowance for loan losses | 10,700 | 11,500 |
Net loans | 805,607 | 796,537 |
Premises and equipment | 25,701 | 25,719 |
Corporate owned life insurance | 24,775 | 24,401 |
Accrued interest receivable | 5,448 | 5,442 |
Equity securities without readily determinable fair values | 19,303 | 18,293 |
Goodwill and other intangible assets | 46,216 | 46,311 |
Other assets | 16,267 | 20,605 |
TOTAL ASSETS | 1,522,135 | 1,493,137 |
Deposits | ' | ' |
Noninterest bearing | 162,537 | 158,428 |
NOW accounts | 186,705 | 192,089 |
Certificates of deposit under $100 and other savings | 463,497 | 455,547 |
Certificates of deposit over $100 | 248,189 | 237,702 |
Total deposits | 1,060,928 | 1,043,766 |
Borrowed funds | 279,457 | 279,326 |
Accrued interest payable and other liabilities | 10,651 | 9,436 |
Total liabilities | 1,351,036 | 1,332,528 |
Shareholders' equity | ' | ' |
Common stock — no par value 15,000,000 shares authorized; issued and outstanding 7,735,156 shares (including 6,697 shares held in the Rabbi Trust) in 2014 and 7,723,023 shares (including 12,761 shares held in the Rabbi Trust) in 2013 | 137,945 | 137,580 |
Shares to be issued for deferred compensation obligations | 3,984 | 4,148 |
Retained earnings | 28,702 | 25,222 |
Accumulated other comprehensive income | 468 | -6,341 |
Total shareholders' equity | 171,099 | 160,609 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,522,135 | $1,493,137 |
Interim_Condensed_Consolidated1
Interim Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Available-for-sale securities, amortized cost | $546,102 | $517,614 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 7,735,156 | 7,723,023 |
Common stock, shares outstanding | 7,735,156 | 7,723,023 |
Common stock, shares held in Rabbi Trust | 6,697 | 12,761 |
Interim_Condensed_Consolidated2
Interim Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest income | ' | ' | ' | ' |
Loans, including fees | $9,799 | $10,280 | $19,550 | $20,610 |
AFS securities | ' | ' | ' | ' |
Taxable | 1,993 | 1,798 | 3,991 | 3,632 |
Nontaxable | 1,486 | 1,244 | 2,943 | 2,478 |
Trading securities | 1 | 9 | 6 | 23 |
Federal funds sold and other | 112 | 109 | 265 | 225 |
Total interest income | 13,391 | 13,440 | 26,755 | 26,968 |
Interest expense | ' | ' | ' | ' |
Deposits | 1,589 | 1,822 | 3,205 | 3,696 |
Borrowings | 879 | 959 | 1,763 | 1,906 |
Total interest expense | 2,468 | 2,781 | 4,968 | 5,602 |
Net interest income | 10,923 | 10,659 | 21,787 | 21,366 |
Provision for loan losses | -200 | 215 | -442 | 515 |
Net interest income after provision for loan losses | 11,123 | 10,444 | 22,229 | 20,851 |
Noninterest income | ' | ' | ' | ' |
Service charges and fees | 1,360 | 1,445 | 2,754 | 2,726 |
Net gain on sale of mortgage loans | 151 | 249 | 266 | 607 |
Earnings on corporate owned life insurance policies | 190 | 190 | 374 | 359 |
Net gains (losses) on sale of AFS securities | 0 | 0 | 0 | 99 |
Other | 733 | 852 | 1,289 | 1,392 |
Total noninterest income | 2,434 | 2,736 | 4,683 | 5,183 |
Noninterest expenses | ' | ' | ' | ' |
Compensation and benefits | 5,385 | 5,236 | 10,871 | 10,681 |
Furniture and equipment | 1,219 | 1,192 | 2,487 | 2,381 |
Occupancy | 676 | 641 | 1,418 | 1,306 |
Other | 2,020 | 2,255 | 4,010 | 4,147 |
Total noninterest expenses | 9,300 | 9,324 | 18,786 | 18,515 |
Income before federal income tax expense | 4,257 | 3,856 | 8,126 | 7,519 |
Federal income tax expense | 692 | 643 | 1,252 | 1,219 |
NET INCOME | $3,565 | $3,213 | $6,874 | $6,300 |
Earnings per share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.46 | $0.42 | $0.89 | $0.82 |
Diluted (in dollars per share) | $0.45 | $0.41 | $0.87 | $0.80 |
Cash dividends per basic share (in dollars per share) | $0.22 | $0.21 | $0.44 | $0.42 |
Interim_Condensed_Consolidated3
Interim Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ||||
Net income | $3,565 | $3,213 | $6,874 | $6,300 | ||||
Unrealized gains (losses) on AFS securities | ' | ' | ' | ' | ||||
Unrealized gains (losses) arising during the period | 4,448 | -11,997 | 9,968 | -13,958 | ||||
Reclassification adjustment for net realized (gains) losses included in net income | 0 | 0 | 0 | -99 | ||||
Net unrealized gains (losses) | 4,448 | -11,997 | 9,968 | -14,057 | ||||
Tax effect | -1,420 | [1] | 3,979 | [1] | -3,159 | [1] | 4,902 | [1] |
Other comprehensive income (loss), net of tax | 3,028 | -8,018 | 6,809 | -9,155 | ||||
Comprehensive income (loss) | $6,593 | ($4,805) | $13,683 | ($2,855) | ||||
[1] | See “Note 12 – Accumulated Other Comprehensive Income (Loss)†for tax effect reconciliation. |
Interim_Condensed_Consolidated4
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (USD $) | Total | Common Stock | Shares to be Issued for Deferred Compensation Obligations | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data, unless otherwise specified | |||||
Beginning balances at Dec. 31, 2012 | $164,489 | $136,580 | $3,734 | $19,168 | $5,007 |
Beginning balances, shares at Dec. 31, 2012 | ' | 7,671,846 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Comprehensive income (loss) | -2,855 | ' | ' | 6,300 | -9,155 |
Issuance of common stock | 1,900 | 1,900 | ' | ' | ' |
Issuance of common stock, shares | ' | 77,568 | ' | ' | ' |
Common stock issued for deferred compensation obligations | 0 | ' | ' | ' | ' |
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | 121 | -121 | ' | ' |
Share based payment awards under equity compensation plan | 258 | ' | 258 | ' | ' |
Common stock purchased for deferred compensation obligations | -166 | -166 | ' | ' | ' |
Common stock repurchased pursuant to publicly announced repurchase plan | -1,114 | -1,114 | ' | ' | ' |
Common stock repurchased pursuant to publicly announced repurchase plan, shares | ' | -45,825 | ' | ' | ' |
Cash dividends | -3,224 | ' | ' | -3,224 | ' |
Ending balances at Jun. 30, 2013 | 159,288 | 137,321 | 3,871 | 22,244 | -4,148 |
Ending balances, shares at Jun. 30, 2013 | ' | 7,703,589 | ' | ' | ' |
Beginning balances at Dec. 31, 2013 | 160,609 | 137,580 | 4,148 | 25,222 | -6,341 |
Beginning balances, shares at Dec. 31, 2013 | 7,723,023 | 7,723,023 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Comprehensive income (loss) | 13,683 | ' | ' | 6,874 | 6,809 |
Issuance of common stock | 1,778 | 1,778 | ' | ' | ' |
Issuance of common stock, shares | ' | 76,341 | ' | ' | ' |
Common stock issued for deferred compensation obligations | 0 | 143 | -143 | ' | ' |
Common stock issued for deferred compensation obligations, shares | ' | 6,126 | ' | ' | ' |
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | 258 | -258 | ' | ' |
Share based payment awards under equity compensation plan | 237 | ' | 237 | ' | ' |
Common stock purchased for deferred compensation obligations | -166 | -166 | ' | ' | ' |
Common stock repurchased pursuant to publicly announced repurchase plan | -1,648 | -1,648 | ' | ' | ' |
Common stock repurchased pursuant to publicly announced repurchase plan, shares | ' | -70,334 | ' | ' | ' |
Cash dividends | -3,394 | ' | ' | -3,394 | ' |
Ending balances at Jun. 30, 2014 | $171,099 | $137,945 | $3,984 | $28,702 | $468 |
Ending balances, shares at Jun. 30, 2014 | 7,735,156 | 7,735,156 | ' | ' | ' |
Interim_Condensed_Consolidated5
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' | ' |
Cash dividends per share (in dollars per share) | $0.22 | $0.21 | $0.44 | $0.42 |
Interim_Condensed_Consolidated6
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
OPERATING ACTIVITIES | ' | ' |
Net income | $6,874 | $6,300 |
Reconciliation of net income to net cash provided by operating activities: | ' | ' |
Provision for loan losses | -442 | 515 |
Impairment of foreclosed assets | 63 | 92 |
Depreciation | 1,242 | 1,249 |
Amortization of OMSRs | 139 | 210 |
Amortization of acquisition intangibles | 95 | 114 |
Net amortization of AFS securities | 920 | 1,131 |
Net (gains) losses on sale of AFS securities | 0 | -99 |
Net unrealized (gains) losses on trading securities | 5 | 18 |
Net gain on sale of mortgage loans | -266 | -607 |
Increase in cash value of corporate owned life insurance policies | -374 | -359 |
Share-based payment awards under equity compensation plan | 237 | 258 |
Origination of loans held for sale | -12,878 | -35,014 |
Proceeds from loan sales | 13,908 | 38,511 |
Net changes in operating assets and liabilities which provided (used) cash: | ' | ' |
Trading securities | 520 | 605 |
Accrued interest receivable | -6 | -5 |
Other assets | -250 | 914 |
Accrued interest payable and other liabilities | 1,215 | 761 |
Net cash provided by (used in) operating activities | 11,002 | 14,594 |
INVESTING ACTIVITIES | ' | ' |
Net change in certificates of deposit held in other financial institutions | 0 | 2,655 |
Activity in AFS securities | ' | ' |
Sales | 0 | 9,857 |
Maturities and calls | 32,354 | 46,780 |
Purchases | -61,762 | -67,140 |
Loan principal (originations) collections, net | -9,551 | -32,185 |
Proceeds from sales of foreclosed assets | 1,140 | 1,556 |
Purchases of premises and equipment | -1,224 | -1,314 |
Purchases of corporate owned life insurance policies | 0 | -1,092 |
Proceeds from the redemption of corporate owned life insurance policies | 0 | 123 |
Net cash provided by (used in) investing activities | -39,043 | -40,760 |
FINANCING ACTIVITIES | ' | ' |
Net increase (decrease) in deposits | 17,162 | 3,757 |
Increase in other borrowed funds | 131 | 21,459 |
Cash dividends paid on common stock | -3,394 | -3,224 |
Proceeds from issuance of common stock | 1,778 | 1,900 |
Common stock repurchased | -1,648 | -1,114 |
Common stock purchased for deferred compensation obligations | -166 | -166 |
Net cash provided by (used in) financing activities | 13,863 | 22,612 |
Increase (decrease) in cash and cash equivalents | -14,178 | -3,554 |
Cash and cash equivalents at beginning of period | 41,558 | 24,920 |
Cash and cash equivalents at end of period | 27,380 | 21,366 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ' | ' |
Interest paid | 5,074 | 5,667 |
Federal income taxes paid | 715 | 702 |
SUPPLEMENTAL NONCASH INFORMATION: | ' | ' |
Transfers of loans to foreclosed assets | $923 | $735 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
As used in these notes as well as in Management's Discussion and Analysis of Financial Condition and Results of Operations, references to “Isabella,” “we,” “our,” “us,” and similar terms refer to the consolidated entity consisting of Isabella Bank Corporation and its subsidiaries. Isabella Bank Corporation refers solely to the parent holding company, and Isabella Bank refers to Isabella Bank Corporation’s subsidiary, Isabella Bank. | |
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. For further information, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
Our accounting policies are materially the same as those discussed in Note 1 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013. |
Computation_of_Earnings_Per_Co
Computation of Earnings Per Common Share | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation of Earnings Per Common Share | ' | |||||||||||||||
Computation of Earnings Per Common Share | ||||||||||||||||
Basic earnings per common share represents income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued relate solely to outstanding shares in the Directors Plan. | ||||||||||||||||
Earnings per common share have been computed based on the following: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Average number of common shares outstanding for basic calculation | 7,722,367 | 7,701,042 | 7,721,814 | 7,689,092 | ||||||||||||
Average potential effect of common shares in the Directors Plan (1) | 168,715 | 168,323 | 170,984 | 166,800 | ||||||||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 7,891,082 | 7,869,365 | 7,892,798 | 7,855,892 | ||||||||||||
Net income | $ | 3,565 | $ | 3,213 | $ | 6,874 | $ | 6,300 | ||||||||
Earnings per common share | ||||||||||||||||
Basic | $ | 0.46 | $ | 0.42 | $ | 0.89 | $ | 0.82 | ||||||||
Diluted | $ | 0.45 | $ | 0.41 | $ | 0.87 | $ | 0.8 | ||||||||
(1) | Exclusive of shares held in the Rabbi Trust |
Pending_Accounting_Standards_U
Pending Accounting Standards Updates | 6 Months Ended | |
Jun. 30, 2014 | ||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' | |
Pending Accounting Standards Updates | ' | |
Pending Accounting Standards Updates | ||
ASU No. 2014-01: “Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force)” | ||
In January 2014, ASU No. 2014-01 amended ASC Topic 323, “Investments" to allow investors in low income housing tax credits to use the proportional amortization method if the following criteria are met: | ||
• | It is probable that the tax credits allocable to the investor will be available. | |
• | The investor does not have the ability to exercise significant influence over the operating and financial policies of the limited liability entity. | |
• | Substantially all of the projected benefits are from tax credits and other tax benefits (e.g., operating losses). | |
• | The investor’s projected yield is based solely on the cash flows from the tax credits and other tax benefits are positive. | |
• | The investor is a limited liability investor in the limited liability entity for both legal and tax purposes, and the investor’s liability is limited to its capital investment. | |
Investors that do not meet the above criteria must utilize the cost method or equity method in accordance with previously issued authoritative accounting guidance. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2014 and is not expected to have a significant impact on our operations. | ||
ASU No. 2014-04: “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force)” | ||
In January 2014, ASU No. 2014-04 amended ASC Topic 310, “Receivables” to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2014 and is not expected to have a significant impact on our operations. | ||
ASU No. 2014-11: “Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures” | ||
In June 2014, ASU No. 2014-11 amended ASC Topic 860, “Transfers and Servicing” to address concerns that current accounting guidance distinguishes between repurchase agreements that settle at the same time as the maturity of the transferred financial asset and those that settle any time before maturity. The update changes the accounting for repurchase-to-maturity transactions to secured borrowing accounting and, for repurchase financing arrangements, separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2014 and is not expected to impact our financial statement disclosures. |
AFS_Securities
AFS Securities | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
AFS Securities | ' | |||||||||||||||||||||||
AFS Securities | ||||||||||||||||||||||||
The amortized cost and fair value of AFS securities, with gross unrealized gains and losses, are as follows at: | ||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Government sponsored enterprises | $ | 24,706 | $ | 5 | $ | 607 | $ | 24,104 | ||||||||||||||||
States and political subdivisions | 208,564 | 6,962 | 1,316 | 214,210 | ||||||||||||||||||||
Auction rate money market preferred | 3,200 | — | 333 | 2,867 | ||||||||||||||||||||
Preferred stocks | 6,800 | 6 | 592 | 6,214 | ||||||||||||||||||||
Mortgage-backed securities | 162,949 | 1,732 | 1,689 | 162,992 | ||||||||||||||||||||
Collateralized mortgage obligations | 139,883 | 1,652 | 1,404 | 140,131 | ||||||||||||||||||||
Total | $ | 546,102 | $ | 10,357 | $ | 5,941 | $ | 550,518 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Government sponsored enterprises | $ | 24,860 | $ | 7 | $ | 1,122 | $ | 23,745 | ||||||||||||||||
States and political subdivisions | 200,323 | 5,212 | 3,547 | 201,988 | ||||||||||||||||||||
Auction rate money market preferred | 3,200 | — | 623 | 2,577 | ||||||||||||||||||||
Preferred stocks | 6,800 | 20 | 993 | 5,827 | ||||||||||||||||||||
Mortgage-backed securities | 147,292 | 657 | 3,834 | 144,115 | ||||||||||||||||||||
Collateralized mortgage obligations | 135,139 | 1,016 | 2,345 | 133,810 | ||||||||||||||||||||
Total | $ | 517,614 | $ | 6,912 | $ | 12,464 | $ | 512,062 | ||||||||||||||||
The amortized cost and fair value of AFS securities by contractual maturity at June 30, 2014 are as follows: | ||||||||||||||||||||||||
Maturing | Securities with Variable Monthly Payments or Noncontractual Maturities | |||||||||||||||||||||||
Due in | After One | After Five | After | Total | ||||||||||||||||||||
One Year | Year But | Years But | Ten Years | |||||||||||||||||||||
or Less | Within | Within | ||||||||||||||||||||||
Five Years | Ten Years | |||||||||||||||||||||||
Government sponsored enterprises | $ | — | $ | 9,068 | $ | 15,638 | $ | — | $ | — | $ | 24,706 | ||||||||||||
States and political subdivisions | 10,714 | 49,186 | 99,791 | 48,873 | — | 208,564 | ||||||||||||||||||
Auction rate money market preferred | — | — | — | — | 3,200 | 3,200 | ||||||||||||||||||
Preferred stocks | — | — | — | — | 6,800 | 6,800 | ||||||||||||||||||
Mortgage-backed securities | — | — | — | — | 162,949 | 162,949 | ||||||||||||||||||
Collateralized mortgage obligations | — | — | — | — | 139,883 | 139,883 | ||||||||||||||||||
Total amortized cost | $ | 10,714 | $ | 58,254 | $ | 115,429 | $ | 48,873 | $ | 312,832 | $ | 546,102 | ||||||||||||
Fair value | $ | 10,812 | $ | 60,195 | $ | 118,057 | $ | 49,250 | $ | 312,204 | $ | 550,518 | ||||||||||||
Expected maturities for government sponsored enterprises and states and political subdivisions may differ from contractual maturities because issuers may have the right to call or prepay obligations. | ||||||||||||||||||||||||
As the auction rate money market preferred and preferred stocks have continual call dates, they are not reported by a specific maturity group. Because of their variable monthly payments, mortgage-backed securities and collateralized mortgage obligations are not reported by a specific maturity group. | ||||||||||||||||||||||||
A summary of the sales activity of AFS securities was as follows for the three and six month periods ended: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30 | June 30 | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Proceeds from sales of AFS securities | $ | — | $ | — | $ | — | $ | 9,857 | ||||||||||||||||
Gross realized gains (losses) | $ | — | $ | — | $ | — | $ | 99 | ||||||||||||||||
Applicable income tax expense (benefit) | $ | — | $ | — | $ | — | $ | 34 | ||||||||||||||||
The cost basis used to determine the realized gains or losses of AFS securities sold was the amortized cost of the individual investment security as of the trade date. | ||||||||||||||||||||||||
Information pertaining to AFS securities with gross unrealized losses at June 30, 2014 and December 31, 2013, respectively, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: | ||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | |||||||||||||||||||||||
Gross | Fair | Gross | Fair | Total | ||||||||||||||||||||
Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
Government sponsored enterprises | $ | — | $ | — | $ | 607 | $ | 23,389 | $ | 607 | ||||||||||||||
States and political subdivisions | 259 | 15,190 | 1,057 | 27,852 | 1,316 | |||||||||||||||||||
Auction rate money market preferred | — | — | 333 | 2,167 | 333 | |||||||||||||||||||
Preferred stocks | — | — | 592 | 3,208 | 592 | |||||||||||||||||||
Mortgage-backed securities | 17 | 9,268 | 1,672 | 65,346 | 1,689 | |||||||||||||||||||
Collateralized mortgage obligations | 82 | 23,739 | 1,322 | 42,518 | 1,404 | |||||||||||||||||||
Total | $ | 358 | $ | 48,197 | $ | 5,583 | $ | 164,480 | $ | 5,941 | ||||||||||||||
Number of securities in an unrealized loss position: | 123 | 116 | 239 | |||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | |||||||||||||||||||||||
Gross | Fair | Gross | Fair | Total | ||||||||||||||||||||
Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
Government sponsored enterprises | $ | 1,122 | $ | 22,873 | $ | — | $ | — | $ | 1,122 | ||||||||||||||
States and political subdivisions | 2,566 | 42,593 | 981 | 6,115 | 3,547 | |||||||||||||||||||
Auction rate money market preferred | — | — | 623 | 2,577 | 623 | |||||||||||||||||||
Preferred stocks | — | — | 993 | 2,807 | 993 | |||||||||||||||||||
Mortgage-backed securities | 2,424 | 101,816 | 1,410 | 21,662 | 3,834 | |||||||||||||||||||
Collateralized mortgage obligations | 2,345 | 84,478 | — | — | 2,345 | |||||||||||||||||||
Total | $ | 8,457 | $ | 251,760 | $ | 4,007 | $ | 33,161 | $ | 12,464 | ||||||||||||||
Number of securities in an unrealized loss position: | 182 | 19 | 201 | |||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, we conducted an analysis to determine whether any securities currently in an unrealized loss position should be other-than-temporarily impaired. Such analyses considered, among other factors, the following criteria: | ||||||||||||||||||||||||
• | Has the value of the investment declined more than what is deemed to be reasonable based on a risk and maturity adjusted discount rate? | |||||||||||||||||||||||
• | Is the investment credit rating below investment grade? | |||||||||||||||||||||||
• | Is it probable the issuer will be unable to pay the amount when due? | |||||||||||||||||||||||
• | Is it more likely than not that we will have to sell the security before recovery of its cost basis? | |||||||||||||||||||||||
• | Has the duration of the investment been extended? | |||||||||||||||||||||||
Based on our analyses, the fact that we have asserted that we do not have the intent to sell AFS securities in an unrealized loss position, and considering it is unlikely that we will have to sell AFS securities in an unrealized loss position before recovery of their cost basis, we do not believe that the values of any AFS securities are other-than-temporarily impaired as of June 30, 2014, or December 31, 2013. |
Loans_and_ALLL
Loans and ALLL | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
Loans and ALLL | ' | |||||||||||||||||||||||||||
Loans and ALLL | ||||||||||||||||||||||||||||
We grant commercial, agricultural, residential real estate, and consumer loans to customers situated primarily in Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm, and Saginaw counties in Michigan. The ability of the borrowers to honor their repayment obligations is often dependent upon the real estate, agricultural, light manufacturing, retail, gaming, tourism, higher education, and general economic conditions of this region. Substantially all of our consumer and residential real estate loans are secured by various items of property, while commercial loans are secured primarily by real estate, business assets, and personal guarantees; a portion of loans are unsecured. | ||||||||||||||||||||||||||||
Loans that we have the intent and ability to hold in our portfolio are reported at their outstanding principal balance adjusted for any charge-offs, the ALLL, and any deferred fees or costs. Interest income is accrued over the term of the loan based on the principal amount outstanding. Loan origination fees and certain direct loan origination costs are capitalized and recognized as a component of interest income over the term of the loan using the level yield method. | ||||||||||||||||||||||||||||
The accrual of interest on commercial, agricultural, and residential real estate loans is typically discontinued at the time the loan is 90 days or more past due unless the credit is well-secured and in the process of collection. Consumer loans are typically charged-off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. | ||||||||||||||||||||||||||||
For loans that are placed on nonaccrual status or charged-off, all interest accrued in the current calendar year, but not collected, is reversed against interest income while interest accrued in prior calendar years, but not collected, is charged against the ALLL. Loans are typically returned to accrual status after six months of continuous performance. For impaired loans not classified as nonaccrual, interest income continues to be accrued over the term of the loan based on the principal amount outstanding. | ||||||||||||||||||||||||||||
Commercial and agricultural loans include loans for commercial real estate, commercial operating loans, farmland and agricultural production, and states and political subdivisions. Repayment of these loans is often dependent upon the successful operation and management of a business. We minimize our risk by limiting the amount of credit exposure to any one borrower to $15,000. Borrowers with credit needs of more than $15,000 are serviced through the use of loan participations with other commercial banks. Commercial and agricultural real estate loans generally require loan-to-value limits of less than 80%. Depending upon the type of loan, past credit history, and current operating results, we may require the borrower to pledge accounts receivable, inventory, and property and equipment. Personal guarantees are generally required from the owners of closely held corporations, partnerships, and sole proprietorships. In addition, we require annual financial statements, prepare cash flow analyses, and review credit reports as deemed necessary. | ||||||||||||||||||||||||||||
We offer adjustable rate mortgages, construction loans, and fixed rate residential real estate loans which typically have amortization periods up to a maximum of 30 years. Fixed rate residential real estate loans with an amortization of greater than 15 years are generally sold upon origination to Freddie Mac. Fixed rate residential real estate loans with an amortization of 15 years or less may be held in our portfolio or sold upon origination. We consider the direction of interest rates, the sensitivity of our balance sheet to changes in interest rates, and overall loan demand to determine whether or not to sell these loans to Freddie Mac. | ||||||||||||||||||||||||||||
Our lending policies generally limit the maximum loan-to-value ratio on residential real estate loans to 95% of the lower of the appraised value of the property or the purchase price, with the condition that private mortgage insurance is required on loans with loan-to-value ratios in excess of 80%. Substantially all loans upon origination have a loan to value ratio of less than 80%. Underwriting criteria for residential real estate loans include: evaluation of the borrower’s ability to make monthly payments, the value of the property securing the loan, ensuring the payment of principal, interest, taxes, and hazard insurance does not exceed 28% of a borrower’s gross income, all debt servicing does not exceed 36% of income, acceptable credit reports, verification of employment, income, and financial information. Appraisals are performed by independent appraisers and reviewed internally. All mortgage loan requests are reviewed by our mortgage loan committee or through a secondary market automated underwriting system; loans in excess of $500 require the approval of our Internal Loan Committee, the Board of Directors’ Loan Committee, or the Board of Directors. | ||||||||||||||||||||||||||||
Consumer loans include secured and unsecured personal loans. Loans are amortized for a period of up to 12 years based on the age and value of the underlying collateral. The underwriting emphasis is on a borrower’s perceived intent and ability to pay rather than collateral value. No consumer loans are sold to the secondary market. | ||||||||||||||||||||||||||||
The ALLL is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the ALLL when we believe the uncollectability of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the ALLL. | ||||||||||||||||||||||||||||
The ALLL is evaluated on a regular basis and is based upon a periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | ||||||||||||||||||||||||||||
The primary factors behind the determination of the level of the ALLL are specific allocations for impaired loans, historical loss percentages, as well as unallocated components. Specific allocations for impaired loans are primarily determined based on the difference between the net realizable value of the loan’s underlying collateral or the net present value of the projected payment stream and our recorded investment. Historical loss allocations were calculated at the loan class and segment levels based on a migration analysis of the loan portfolio over the preceding five years. An unallocated component is maintained to cover uncertainties that we believe affect our estimate of probable losses based on qualitative factors. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | ||||||||||||||||||||||||||||
A summary of changes in the ALLL and the recorded investment in loans by segments follows: | ||||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Commercial | Agricultural | Residential Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||
April 1, 2014 | $ | 4,814 | $ | 425 | $ | 4,727 | $ | 630 | $ | 504 | $ | 11,100 | ||||||||||||||||
Loans charged-off | (79 | ) | — | (264 | ) | (68 | ) | — | (411 | ) | ||||||||||||||||||
Recoveries | 92 | — | 86 | 33 | — | 211 | ||||||||||||||||||||||
Provision for loan losses | 185 | (206 | ) | (568 | ) | 207 | 182 | (200 | ) | |||||||||||||||||||
June 30, 2014 | $ | 5,012 | $ | 219 | $ | 3,981 | $ | 802 | $ | 686 | $ | 10,700 | ||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Commercial | Agricultural | Residential Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||
January 1, 2014 | $ | 6,048 | $ | 434 | $ | 3,845 | $ | 639 | $ | 534 | $ | 11,500 | ||||||||||||||||
Loans charged-off | (271 | ) | (31 | ) | (377 | ) | (182 | ) | — | (861 | ) | |||||||||||||||||
Recoveries | 306 | — | 122 | 75 | — | 503 | ||||||||||||||||||||||
Provision for loan losses | (1,071 | ) | (184 | ) | 391 | 270 | 152 | (442 | ) | |||||||||||||||||||
June 30, 2014 | $ | 5,012 | $ | 219 | $ | 3,981 | $ | 802 | $ | 686 | $ | 10,700 | ||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | ||||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||
Commercial | Agricultural | Residential Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||
ALLL | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,633 | $ | 36 | $ | 2,270 | $ | 1 | $ | — | $ | 3,940 | ||||||||||||||||
Collectively evaluated for impairment | 3,379 | 183 | 1,711 | 801 | 686 | 6,760 | ||||||||||||||||||||||
Total | $ | 5,012 | $ | 219 | $ | 3,981 | $ | 802 | $ | 686 | $ | 10,700 | ||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 13,164 | $ | 1,583 | $ | 12,906 | $ | 74 | $ | 27,727 | ||||||||||||||||||
Collectively evaluated for impairment | 394,627 | 96,078 | 265,639 | 32,236 | 788,580 | |||||||||||||||||||||||
Total | $ | 407,791 | $ | 97,661 | $ | 278,545 | $ | 32,310 | $ | 816,307 | ||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
Commercial | Agricultural | Residential Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||
April 1, 2013 | $ | 6,897 | $ | 321 | $ | 3,634 | $ | 732 | $ | 325 | $ | 11,909 | ||||||||||||||||
Loans charged-off | (234 | ) | — | (397 | ) | (88 | ) | — | (719 | ) | ||||||||||||||||||
Recoveries | 166 | — | 61 | 68 | — | 295 | ||||||||||||||||||||||
Provision for loan losses | (357 | ) | 14 | 378 | (65 | ) | 245 | 215 | ||||||||||||||||||||
June 30, 2013 | $ | 6,472 | $ | 335 | $ | 3,676 | $ | 647 | $ | 570 | $ | 11,700 | ||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
Commercial | Agricultural | Residential Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||
January 1, 2013 | $ | 6,862 | $ | 407 | $ | 3,627 | $ | 666 | $ | 374 | $ | 11,936 | ||||||||||||||||
Loans charged-off | (445 | ) | — | (587 | ) | (209 | ) | — | (1,241 | ) | ||||||||||||||||||
Recoveries | 223 | — | 114 | 153 | — | 490 | ||||||||||||||||||||||
Provision for loan losses | (168 | ) | (72 | ) | 522 | 37 | 196 | 515 | ||||||||||||||||||||
June 30, 2013 | $ | 6,472 | $ | 335 | $ | 3,676 | $ | 647 | $ | 570 | $ | 11,700 | ||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Commercial | Agricultural | Residential Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||
ALLL | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,035 | $ | 30 | $ | 2,287 | $ | — | $ | — | $ | 4,352 | ||||||||||||||||
Collectively evaluated for impairment | 4,013 | 404 | 1,558 | 639 | 534 | 7,148 | ||||||||||||||||||||||
Total | $ | 6,048 | $ | 434 | $ | 3,845 | $ | 639 | $ | 534 | $ | 11,500 | ||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 13,816 | $ | 1,538 | $ | 14,302 | $ | 119 | $ | 29,775 | ||||||||||||||||||
Collectively evaluated for impairment | 378,288 | 91,051 | 275,629 | 33,294 | 778,262 | |||||||||||||||||||||||
Total | $ | 392,104 | $ | 92,589 | $ | 289,931 | $ | 33,413 | $ | 808,037 | ||||||||||||||||||
The following table displays the credit quality indicators for commercial and agricultural credit exposures based on internally assigned credit ratings as of: | ||||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||
Commercial | Agricultural | |||||||||||||||||||||||||||
Real Estate | Other | Total | Real Estate | Other | Total | |||||||||||||||||||||||
Rating | ||||||||||||||||||||||||||||
2 - High quality | $ | 15,038 | $ | 16,364 | $ | 31,402 | $ | 5,619 | $ | 3,817 | $ | 9,436 | ||||||||||||||||
3 - High satisfactory | 92,014 | 48,135 | 140,149 | 25,840 | 12,843 | 38,683 | ||||||||||||||||||||||
4 - Low satisfactory | 166,155 | 42,561 | 208,716 | 29,461 | 15,804 | 45,265 | ||||||||||||||||||||||
5 - Special mention | 9,816 | 1,153 | 10,969 | 1,810 | 318 | 2,128 | ||||||||||||||||||||||
6 - Substandard | 13,557 | 145 | 13,702 | 1,848 | 186 | 2,034 | ||||||||||||||||||||||
7 - Vulnerable | 2,605 | 234 | 2,839 | 115 | — | 115 | ||||||||||||||||||||||
8 - Doubtful | — | 14 | 14 | — | — | — | ||||||||||||||||||||||
Total | $ | 299,185 | $ | 108,606 | $ | 407,791 | $ | 64,693 | $ | 32,968 | $ | 97,661 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Commercial | Agricultural | |||||||||||||||||||||||||||
Real Estate | Other | Total | Real Estate | Other | Total | |||||||||||||||||||||||
Rating | ||||||||||||||||||||||||||||
2 - High quality | $ | 18,671 | $ | 14,461 | $ | 33,132 | $ | 3,527 | $ | 3,235 | $ | 6,762 | ||||||||||||||||
3 - High satisfactory | 91,323 | 39,403 | 130,726 | 26,015 | 17,000 | 43,015 | ||||||||||||||||||||||
4 - Low satisfactory | 149,921 | 43,809 | 193,730 | 26,874 | 10,902 | 37,776 | ||||||||||||||||||||||
5 - Special mention | 13,747 | 1,843 | 15,590 | 1,609 | 922 | 2,531 | ||||||||||||||||||||||
6 - Substandard | 16,974 | 473 | 17,447 | 1,232 | 1,273 | 2,505 | ||||||||||||||||||||||
7 - Vulnerable | 1,041 | 238 | 1,279 | — | — | — | ||||||||||||||||||||||
8 - Doubtful | 183 | 17 | 200 | — | — | — | ||||||||||||||||||||||
Total | $ | 291,860 | $ | 100,244 | $ | 392,104 | $ | 59,257 | $ | 33,332 | $ | 92,589 | ||||||||||||||||
Internally assigned risk ratings are reviewed, at a minimum, when loans are renewed or when management has knowledge of improvements or deterioration of the credit quality of individual credits. Descriptions of the internally assigned risk ratings for commercial and agricultural loans are as follows: | ||||||||||||||||||||||||||||
1. EXCELLENT – Substantially Risk Free | ||||||||||||||||||||||||||||
Credit has strong financial condition and solid earnings history, characterized by: | ||||||||||||||||||||||||||||
• | High liquidity, strong cash flow, low leverage. | |||||||||||||||||||||||||||
• | Unquestioned ability to meet all obligations when due. | |||||||||||||||||||||||||||
• | Experienced management, with management succession in place. | |||||||||||||||||||||||||||
• | Secured by cash. | |||||||||||||||||||||||||||
2. HIGH QUALITY – Limited Risk | ||||||||||||||||||||||||||||
Credit with sound financial condition and has a positive trend in earnings supplemented by: | ||||||||||||||||||||||||||||
• | Favorable liquidity and leverage ratios. | |||||||||||||||||||||||||||
• | Ability to meet all obligations when due. | |||||||||||||||||||||||||||
• | Management with successful track record. | |||||||||||||||||||||||||||
• | Steady and satisfactory earnings history. | |||||||||||||||||||||||||||
• | If loan is secured, collateral is of high quality and readily marketable. | |||||||||||||||||||||||||||
• | Access to alternative financing. | |||||||||||||||||||||||||||
• | Well defined primary and secondary source of repayment. | |||||||||||||||||||||||||||
• | If supported by guaranty, the financial strength and liquidity of the guarantor(s) are clearly evident. | |||||||||||||||||||||||||||
3. HIGH SATISFACTORY – Reasonable Risk | ||||||||||||||||||||||||||||
Credit with satisfactory financial condition and further characterized by: | ||||||||||||||||||||||||||||
• | Working capital adequate to support operations. | |||||||||||||||||||||||||||
• | Cash flow sufficient to pay debts as scheduled. | |||||||||||||||||||||||||||
• | Management experience and depth appear favorable. | |||||||||||||||||||||||||||
• | Loan performing according to terms. | |||||||||||||||||||||||||||
• | If loan is secured, collateral is acceptable and loan is fully protected. | |||||||||||||||||||||||||||
4. LOW SATISFACTORY – Acceptable Risk | ||||||||||||||||||||||||||||
Credit with bankable risks, although some signs of weaknesses are shown: | ||||||||||||||||||||||||||||
• | Would include most start-up businesses. | |||||||||||||||||||||||||||
• | Occasional instances of trade slowness or repayment delinquency – may have been 10-30 days slow within the past year. | |||||||||||||||||||||||||||
• | Management’s abilities are apparent, yet unproven. | |||||||||||||||||||||||||||
• | Weakness in primary source of repayment with adequate secondary source of repayment. | |||||||||||||||||||||||||||
• | Loan structure generally in accordance with policy. | |||||||||||||||||||||||||||
• | If secured, loan collateral coverage is marginal. | |||||||||||||||||||||||||||
• | Adequate cash flow to service debt, but coverage is low. | |||||||||||||||||||||||||||
To be classified as less than satisfactory, only one of the following criteria must be met. | ||||||||||||||||||||||||||||
5. SPECIAL MENTION – Criticized | ||||||||||||||||||||||||||||
Credit constitutes an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. The credit risk may be relatively minor yet constitute an unwarranted risk in light of the circumstances surrounding a specific loan: | ||||||||||||||||||||||||||||
• | Downward trend in sales, profit levels, and margins. | |||||||||||||||||||||||||||
• | Impaired working capital position. | |||||||||||||||||||||||||||
• | Cash flow is strained in order to meet debt repayment. | |||||||||||||||||||||||||||
• | Loan delinquency (30-60 days) and overdrafts may occur. | |||||||||||||||||||||||||||
• | Shrinking equity cushion. | |||||||||||||||||||||||||||
• | Diminishing primary source of repayment and questionable secondary source. | |||||||||||||||||||||||||||
• | Management abilities are questionable. | |||||||||||||||||||||||||||
• | Weak industry conditions. | |||||||||||||||||||||||||||
• | Litigation pending against the borrower. | |||||||||||||||||||||||||||
• | Collateral or guaranty offers limited protection. | |||||||||||||||||||||||||||
• | Negative debt service coverage, however the credit is well collateralized and payments are current. | |||||||||||||||||||||||||||
6. SUBSTANDARD – Classified | ||||||||||||||||||||||||||||
Credit where the borrower’s current net worth, paying capacity, and value of the collateral pledged is inadequate. There is a distinct possibility that we will implement collection procedures if the loan deficiencies are not corrected. In addition, the following characteristics may apply: | ||||||||||||||||||||||||||||
• | Sustained losses have severely eroded the equity and cash flow. | |||||||||||||||||||||||||||
• | Deteriorating liquidity. | |||||||||||||||||||||||||||
• | Serious management problems or internal fraud. | |||||||||||||||||||||||||||
• | Original repayment terms liberalized. | |||||||||||||||||||||||||||
• | Likelihood of bankruptcy. | |||||||||||||||||||||||||||
• | Inability to access other funding sources. | |||||||||||||||||||||||||||
• | Reliance on secondary source of repayment. | |||||||||||||||||||||||||||
• | Litigation filed against borrower. | |||||||||||||||||||||||||||
• | Collateral provides little or no value. | |||||||||||||||||||||||||||
• | Requires excessive attention of the loan officer. | |||||||||||||||||||||||||||
• | Borrower is uncooperative with loan officer. | |||||||||||||||||||||||||||
7. VULNERABLE – Classified | ||||||||||||||||||||||||||||
Credit is considered “Substandard” and warrants placing on nonaccrual. Risk of loss is being evaluated and exit strategy options are under review. Other characteristics that may apply: | ||||||||||||||||||||||||||||
• | Insufficient cash flow to service debt. | |||||||||||||||||||||||||||
• | Minimal or no payments being received. | |||||||||||||||||||||||||||
• | Limited options available to avoid the collection process. | |||||||||||||||||||||||||||
• | Transition status, expect action will take place to collect loan without immediate progress being made. | |||||||||||||||||||||||||||
8. DOUBTFUL – Workout | ||||||||||||||||||||||||||||
Credit has all the weaknesses inherent in a “Substandard” loan with the added characteristic that collection and/or liquidation is pending. The possibility of a loss is extremely high, but its classification as a loss is deferred until liquidation procedures are completed, or reasonably estimable. Other characteristics that may apply: | ||||||||||||||||||||||||||||
• | Normal operations are severely diminished or have ceased. | |||||||||||||||||||||||||||
• | Seriously impaired cash flow. | |||||||||||||||||||||||||||
• | Original repayment terms materially altered. | |||||||||||||||||||||||||||
• | Secondary source of repayment is inadequate. | |||||||||||||||||||||||||||
• | Survivability as a “going concern” is impossible. | |||||||||||||||||||||||||||
• | Collection process has begun. | |||||||||||||||||||||||||||
• | Bankruptcy petition has been filed. | |||||||||||||||||||||||||||
• | Judgments have been filed. | |||||||||||||||||||||||||||
• | Portion of the loan balance has been charged-off. | |||||||||||||||||||||||||||
Our primary credit quality indicator for residential real estate and consumer loans is the individual loan’s past due aging. The following tables summarize the past due and current loans as of: | ||||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||
Accruing Interest | Total Past Due and Nonaccrual | |||||||||||||||||||||||||||
and Past Due: | ||||||||||||||||||||||||||||
30-59 | 60-89 | 90 Days | Nonaccrual | Current | Total | |||||||||||||||||||||||
Days | Days | or More | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Commercial real estate | $ | 857 | $ | 332 | $ | — | $ | 2,605 | $ | 3,794 | $ | 295,391 | $ | 299,185 | ||||||||||||||
Commercial other | 257 | 13 | 28 | 234 | 532 | 108,074 | 108,606 | |||||||||||||||||||||
Total commercial | 1,114 | 345 | 28 | 2,839 | 4,326 | 403,465 | 407,791 | |||||||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||
Agricultural real estate | 208 | — | — | 115 | 323 | 64,370 | 64,693 | |||||||||||||||||||||
Agricultural other | 312 | 84 | — | — | 396 | 32,572 | 32,968 | |||||||||||||||||||||
Total agricultural | 520 | 84 | — | 115 | 719 | 96,942 | 97,661 | |||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Senior liens | 1,558 | 766 | 91 | 1,239 | 3,654 | 222,355 | 226,009 | |||||||||||||||||||||
Junior liens | 311 | 18 | — | 23 | 352 | 11,984 | 12,336 | |||||||||||||||||||||
Home equity lines of credit | 246 | — | — | 361 | 607 | 39,593 | 40,200 | |||||||||||||||||||||
Total residential real estate | 2,115 | 784 | 91 | 1,623 | 4,613 | 273,932 | 278,545 | |||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Secured | 46 | — | — | 10 | 56 | 27,827 | 27,883 | |||||||||||||||||||||
Unsecured | 38 | 4 | — | — | 42 | 4,385 | 4,427 | |||||||||||||||||||||
Total consumer | 84 | 4 | — | 10 | 98 | 32,212 | 32,310 | |||||||||||||||||||||
Total | $ | 3,833 | $ | 1,217 | $ | 119 | $ | 4,587 | $ | 9,756 | $ | 806,551 | $ | 816,307 | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Accruing Interest | Total Past Due and Nonaccrual | |||||||||||||||||||||||||||
and Past Due: | ||||||||||||||||||||||||||||
30-59 | 60-89 | 90 Days | Nonaccrual | Current | Total | |||||||||||||||||||||||
Days | Days | or More | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Commercial real estate | $ | 1,226 | $ | 296 | $ | — | $ | 1,136 | $ | 2,658 | $ | 289,202 | $ | 291,860 | ||||||||||||||
Commercial other | 368 | 15 | 13 | 238 | 634 | 99,610 | 100,244 | |||||||||||||||||||||
Total commercial | 1,594 | 311 | 13 | 1,374 | 3,292 | 388,812 | 392,104 | |||||||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||
Agricultural real estate | 34 | 295 | — | — | 329 | 58,928 | 59,257 | |||||||||||||||||||||
Agricultural other | — | — | — | — | — | 33,332 | 33,332 | |||||||||||||||||||||
Total agricultural | 34 | 295 | — | — | 329 | 92,260 | 92,589 | |||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Senior liens | 3,441 | 986 | 129 | 1,765 | 6,321 | 229,865 | 236,186 | |||||||||||||||||||||
Junior liens | 408 | 44 | — | 29 | 481 | 13,074 | 13,555 | |||||||||||||||||||||
Home equity lines of credit | 181 | — | — | 25 | 206 | 39,984 | 40,190 | |||||||||||||||||||||
Total residential real estate | 4,030 | 1,030 | 129 | 1,819 | 7,008 | 282,923 | 289,931 | |||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Secured | 167 | 11 | — | 50 | 228 | 28,444 | 28,672 | |||||||||||||||||||||
Unsecured | 25 | 5 | — | 1 | 31 | 4,710 | 4,741 | |||||||||||||||||||||
Total consumer | 192 | 16 | — | 51 | 259 | 33,154 | 33,413 | |||||||||||||||||||||
Total | $ | 5,850 | $ | 1,652 | $ | 142 | $ | 3,244 | $ | 10,888 | $ | 797,149 | $ | 808,037 | ||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||
Loans may be classified as impaired if they meet one or more of the following criteria: | ||||||||||||||||||||||||||||
1 | There has been a charge-off of its principal balance (in whole or in part), | |||||||||||||||||||||||||||
2 | The loan has been classified as a TDR, or | |||||||||||||||||||||||||||
3 | The loan is in nonaccrual status. | |||||||||||||||||||||||||||
Impairment is measured on a loan-by-loan basis for commercial and agricultural loans by comparing the loan’s outstanding balance to the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral, less cost to sell, if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Impairment is measured on a loan-by-loan basis for residential real estate and consumer loans by comparing the loan’s outstanding balance to the present value of expected future cash flows discounted at the loan’s effective interest rate. | ||||||||||||||||||||||||||||
We do not recognize interest income on impaired loans in nonaccrual status. For impaired loans not in nonaccrual status, interest income is recognized daily, as earned, according to the terms of the loan agreement. The following is a summary of information pertaining to impaired loans as of: | ||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Outstanding Balance | Unpaid Principal Balance | Valuation Allowance | Outstanding Balance | Unpaid Principal Balance | Valuation Allowance | |||||||||||||||||||||||
Impaired loans with a valuation allowance | ||||||||||||||||||||||||||||
Commercial real estate | $ | 6,512 | $ | 6,720 | $ | 1,621 | $ | 6,748 | $ | 6,888 | $ | 1,915 | ||||||||||||||||
Commercial other | 629 | 848 | 12 | 521 | 521 | 120 | ||||||||||||||||||||||
Agricultural real estate | 204 | 204 | 36 | 90 | 90 | 30 | ||||||||||||||||||||||
Residential real estate senior liens | 12,454 | 13,727 | 2,242 | 14,061 | 15,315 | 2,278 | ||||||||||||||||||||||
Residential real estate junior liens | 92 | 102 | 19 | 48 | 64 | 9 | ||||||||||||||||||||||
Home equity lines of credit | 360 | 660 | 9 | — | — | — | ||||||||||||||||||||||
Consumer secured | 64 | 64 | 1 | — | — | — | ||||||||||||||||||||||
Total impaired loans with a valuation allowance | 20,315 | 22,325 | 3,940 | 21,468 | 22,878 | 4,352 | ||||||||||||||||||||||
Impaired loans without a valuation allowance | ||||||||||||||||||||||||||||
Commercial real estate | 5,708 | 6,326 | 5,622 | 6,499 | ||||||||||||||||||||||||
Commercial other | 315 | 356 | 925 | 1,035 | ||||||||||||||||||||||||
Agricultural real estate | 1,361 | 1,361 | 1,370 | 1,370 | ||||||||||||||||||||||||
Agricultural other | 18 | 138 | 78 | 198 | ||||||||||||||||||||||||
Home equity lines of credit | — | — | 193 | 493 | ||||||||||||||||||||||||
Consumer secured | 10 | 10 | 119 | 148 | ||||||||||||||||||||||||
Total impaired loans without a valuation allowance | 7,412 | 8,191 | 8,307 | 9,743 | ||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||||
Commercial | 13,164 | 14,250 | 1,633 | 13,816 | 14,943 | 2,035 | ||||||||||||||||||||||
Agricultural | 1,583 | 1,703 | 36 | 1,538 | 1,658 | 30 | ||||||||||||||||||||||
Residential real estate | 12,906 | 14,489 | 2,270 | 14,302 | 15,872 | 2,287 | ||||||||||||||||||||||
Consumer | 74 | 74 | 1 | 119 | 148 | — | ||||||||||||||||||||||
Total impaired loans | $ | 27,727 | $ | 30,516 | $ | 3,940 | $ | 29,775 | $ | 32,621 | $ | 4,352 | ||||||||||||||||
The following is a summary of information pertaining to impaired loans for the three and six month periods ended: | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
June 30, 2014 | June 30, 2014 | |||||||||||||||||||||||||||
Average Outstanding Balance | Interest Income Recognized | Average Outstanding Balance | Interest Income Recognized | |||||||||||||||||||||||||
Impaired loans with a valuation allowance | ||||||||||||||||||||||||||||
Commercial real estate | $ | 6,644 | $ | 91 | $ | 6,701 | $ | 185 | ||||||||||||||||||||
Commercial other | 852 | 11 | 825 | 29 | ||||||||||||||||||||||||
Agricultural real estate | 147 | (1 | ) | 118 | — | |||||||||||||||||||||||
Agricultural other | — | — | — | — | ||||||||||||||||||||||||
Residential real estate senior liens | 12,786 | 126 | 13,188 | 264 | ||||||||||||||||||||||||
Residential real estate junior liens | 68 | 1 | 57 | 1 | ||||||||||||||||||||||||
Home equity lines of credit | 265 | 10 | 175 | 11 | ||||||||||||||||||||||||
Consumer secured | 63 | 1 | 77 | 2 | ||||||||||||||||||||||||
Total impaired loans with a valuation allowance | 20,825 | 239 | 21,141 | 492 | ||||||||||||||||||||||||
Impaired loans without a valuation allowance | ||||||||||||||||||||||||||||
Commercial real estate | 5,819 | 91 | 5,797 | 193 | ||||||||||||||||||||||||
Commercial other | 286 | 1 | 438 | 7 | ||||||||||||||||||||||||
Agricultural real estate | 1,405 | 21 | 1,407 | 37 | ||||||||||||||||||||||||
Agricultural other | 131 | — | 146 | 28 | ||||||||||||||||||||||||
Home equity lines of credit | — | — | 48 | — | ||||||||||||||||||||||||
Consumer secured | 5 | — | 3 | — | ||||||||||||||||||||||||
Total impaired loans without a valuation allowance | 7,646 | 113 | 7,839 | 265 | ||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||||
Commercial | 13,601 | 194 | 13,761 | 414 | ||||||||||||||||||||||||
Agricultural | 1,683 | 20 | 1,671 | 65 | ||||||||||||||||||||||||
Residential real estate | 13,119 | 137 | 13,468 | 276 | ||||||||||||||||||||||||
Consumer | 68 | 1 | 80 | 2 | ||||||||||||||||||||||||
Total impaired loans | $ | 28,471 | $ | 352 | $ | 28,980 | $ | 757 | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
June 30, 2013 | June 30, 2013 | |||||||||||||||||||||||||||
Average Outstanding Balance | Interest Income Recognized | Average Outstanding Balance | Interest Income Recognized | |||||||||||||||||||||||||
Impaired loans with a valuation allowance | ||||||||||||||||||||||||||||
Commercial real estate | $ | 7,990 | $ | 102 | $ | 8,084 | $ | 221 | ||||||||||||||||||||
Commercial other | 764 | 37 | 932 | 38 | ||||||||||||||||||||||||
Agricultural real estate | 91 | 1 | 124 | 4 | ||||||||||||||||||||||||
Agricultural other | — | — | 105 | — | ||||||||||||||||||||||||
Residential real estate senior liens | 10,466 | 110 | 10,460 | 209 | ||||||||||||||||||||||||
Residential real estate junior liens | 85 | 1 | 85 | 1 | ||||||||||||||||||||||||
Home equity lines of credit | — | — | — | — | ||||||||||||||||||||||||
Consumer secured | — | — | — | — | ||||||||||||||||||||||||
Total impaired loans with a valuation allowance | 19,396 | 251 | 19,790 | 473 | ||||||||||||||||||||||||
Impaired loans without a valuation allowance | ||||||||||||||||||||||||||||
Commercial real estate | 3,954 | 85 | 3,790 | 158 | ||||||||||||||||||||||||
Commercial other | 1,020 | 19 | 1,126 | 59 | ||||||||||||||||||||||||
Agricultural real estate | 133 | 2 | 67 | 2 | ||||||||||||||||||||||||
Agricultural other | 458 | (11 | ) | 423 | (4 | ) | ||||||||||||||||||||||
Home equity lines of credit | 179 | 5 | 181 | 9 | ||||||||||||||||||||||||
Consumer secured | 63 | 1 | 68 | 2 | ||||||||||||||||||||||||
Total impaired loans without a valuation allowance | 5,807 | 101 | 5,655 | 226 | ||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||||
Commercial | 13,728 | 243 | 13,932 | 476 | ||||||||||||||||||||||||
Agricultural | 682 | (8 | ) | 719 | 2 | |||||||||||||||||||||||
Residential real estate | 10,730 | 116 | 10,726 | 219 | ||||||||||||||||||||||||
Consumer | 63 | 1 | 68 | 2 | ||||||||||||||||||||||||
Total impaired loans | $ | 25,203 | $ | 352 | $ | 25,445 | $ | 699 | ||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, we had committed to advance $36 and $134, respectively, in connection with impaired loans, which include TDRs. | ||||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||||
Loan modifications are considered to be TDRs when the modification includes terms outside of normal lending practices to a borrower who is experiencing financial difficulties. | ||||||||||||||||||||||||||||
Typical concessions granted include, but are not limited to: | ||||||||||||||||||||||||||||
1 | Agreeing to interest rates below prevailing market rates for debt with similar risk characteristics. | |||||||||||||||||||||||||||
2 | Extending the amortization period beyond typical lending guidelines for debt with similar risk characteristics. | |||||||||||||||||||||||||||
3 | Forgiving principal. | |||||||||||||||||||||||||||
4 | Forgiving accrued interest. | |||||||||||||||||||||||||||
To determine if a borrower is experiencing financial difficulties, we consider if: | ||||||||||||||||||||||||||||
1 | The borrower is currently in default on any of their debt. | |||||||||||||||||||||||||||
2 | The borrower would likely default on any of their debt if the concession was not granted. | |||||||||||||||||||||||||||
3 | The borrower’s cash flow was insufficient to service all of their debt if the concession was not granted. | |||||||||||||||||||||||||||
4 | The borrower has declared, or is in the process of declaring, bankruptcy. | |||||||||||||||||||||||||||
5 | The borrower is unlikely to continue as a going concern (if the entity is a business). | |||||||||||||||||||||||||||
The following is a summary of information pertaining to TDRs granted in the: | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||
Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | |||||||||||||||||||||||
Commercial other | 1 | $ | 8 | $ | 8 | 5 | $ | 363 | $ | 363 | ||||||||||||||||||
Agricultural other | — | — | — | — | — | — | ||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Senior liens | 3 | 170 | 170 | 12 | 661 | 661 | ||||||||||||||||||||||
Junior liens | 1 | 41 | 41 | 1 | 41 | 41 | ||||||||||||||||||||||
Home equity lines of credit | 1 | 160 | 160 | 1 | 160 | 160 | ||||||||||||||||||||||
Total residential real estate | 5 | 371 | 371 | 14 | 862 | 862 | ||||||||||||||||||||||
Consumer unsecured | 2 | 8 | 8 | 3 | 8 | 8 | ||||||||||||||||||||||
Total | 8 | $ | 387 | $ | 387 | 22 | $ | 1,233 | $ | 1,233 | ||||||||||||||||||
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||
Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | |||||||||||||||||||||||
Commercial other | 7 | $ | 3,153 | $ | 2,957 | 7 | $ | 3,153 | $ | 2,957 | ||||||||||||||||||
Agricultural other | — | — | — | 1 | 134 | 134 | ||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Senior liens | 7 | 635 | 635 | 15 | 1,435 | 1,418 | ||||||||||||||||||||||
Junior liens | — | — | — | — | — | — | ||||||||||||||||||||||
Home equity lines of credit | — | — | — | — | — | — | ||||||||||||||||||||||
Total residential real estate | 7 | 635 | 635 | 15 | 1,435 | 1,418 | ||||||||||||||||||||||
Consumer unsecured | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 14 | $ | 3,788 | $ | 3,592 | 23 | $ | 4,722 | $ | 4,509 | ||||||||||||||||||
The following tables summarize concessions we granted to borrowers in financial difficulty for the: | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||
Below Market Interest Rate | Below Market Interest Rate and Extension of Amortization Period | Below Market Interest Rate | Below Market Interest Rate and Extension of Amortization Period | |||||||||||||||||||||||||
Number of Loans | Pre-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | |||||||||||||||||||||
Commercial other | — | $ | — | 1 | $ | 8 | 4 | $ | 355 | 1 | $ | 8 | ||||||||||||||||
Agricultural other | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Senior liens | 1 | 48 | 2 | 122 | 3 | 98 | 9 | 563 | ||||||||||||||||||||
Junior liens | — | — | 1 | 41 | — | — | 1 | 41 | ||||||||||||||||||||
Home equity lines of credit | 1 | 160 | — | — | 1 | 160 | — | — | ||||||||||||||||||||
Total residential real estate | 2 | 208 | 3 | 163 | 4 | 258 | 10 | 604 | ||||||||||||||||||||
Consumer unsecured | 1 | 5 | 1 | 3 | 2 | 5 | 1 | 3 | ||||||||||||||||||||
Total | 3 | $ | 213 | 5 | $ | 174 | 10 | $ | 618 | 12 | $ | 615 | ||||||||||||||||
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||
Below Market Interest Rate | Below Market Interest Rate and Extension of Amortization Period | Below Market Interest Rate | Below Market Interest Rate and Extension of Amortization Period | |||||||||||||||||||||||||
Number of Loans | Pre-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | |||||||||||||||||||||
Commercial other | 3 | $ | 1,357 | 4 | $ | 1,796 | 3 | $ | 1,357 | 4 | $ | 1,796 | ||||||||||||||||
Agricultural other | — | — | — | — | 1 | 134 | — | — | ||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Senior liens | 4 | 414 | 3 | 221 | 7 | 625 | 8 | 810 | ||||||||||||||||||||
Junior liens | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Home equity lines of credit | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total residential real estate | 4 | 414 | 3 | 221 | 7 | 625 | 8 | 810 | ||||||||||||||||||||
Consumer unsecured | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total | 7 | $ | 1,771 | 7 | $ | 2,017 | 11 | $ | 2,116 | 12 | $ | 2,606 | ||||||||||||||||
We did not restructure any loans by forgiving principal or accrued interest in the three and six month periods ended June 30, 2014 or 2013. | ||||||||||||||||||||||||||||
Based on our historical loss experience, losses associated with TDRs are not significantly different than other impaired loans within the same loan segment. As such, TDRs, including TDRs that have been modified in the past 12 months that subsequently defaulted, are analyzed in the same manner as other impaired loans within their respective loan segment. | ||||||||||||||||||||||||||||
We had no loans that defaulted in the three and six month periods ended June 30, 2014 or 2013, which were modified within 12 months prior to the default date. | ||||||||||||||||||||||||||||
The following is a summary of TDR loan balances as of: | ||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
TDRs | $ | 24,192 | $ | 25,865 | ||||||||||||||||||||||||
Equity_Securities_Without_Read
Equity Securities Without Readily Determinable Fair Values | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Equity Method And Other Investments [Abstract] | ' | |||||||
Equity Securities Without Readily Determinable Fair Values | ' | |||||||
Equity Securities Without Readily Determinable Fair Values | ||||||||
Included in equity securities without readily determinable fair values are restricted securities, which are carried at cost, and investments in unconsolidated entities accounted for under the equity method of accounting. | ||||||||
Equity securities without readily determinable fair values consist of the following as of: | ||||||||
June 30 | December 31 | |||||||
2014 | 2013 | |||||||
FHLB Stock | $ | 9,100 | $ | 8,100 | ||||
Corporate Settlement Solutions, LLC | 6,983 | 6,970 | ||||||
FRB Stock | 1,879 | 1,879 | ||||||
Valley Financial Corporation | 1,000 | 1,000 | ||||||
Other | 341 | 344 | ||||||
Total | $ | 19,303 | $ | 18,293 | ||||
Borrowed_Funds
Borrowed Funds | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||
Borrowed Funds | ' | |||||||||||||||||||||
Borrowed Funds | ||||||||||||||||||||||
Borrowed funds consist of the following obligations as of: | ||||||||||||||||||||||
June 30 | December 31 | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Amount | Rate | Amount | Rate | |||||||||||||||||||
FHLB advances | $ | 182,000 | 1.84 | % | $ | 162,000 | 2.02 | % | ||||||||||||||
Securities sold under agreements to repurchase without stated maturity dates | 87,058 | 0.13 | % | 106,025 | 0.13 | % | ||||||||||||||||
Securities sold under agreements to repurchase with stated maturity dates | 1,199 | 4.27 | % | 11,301 | 3.3 | % | ||||||||||||||||
Federal funds purchased | 9,200 | 0.39 | % | — | — | |||||||||||||||||
Total | $ | 279,457 | 1.27 | % | $ | 279,326 | 1.35 | % | ||||||||||||||
FHLB advances are collateralized by a blanket lien on all qualified 1-4 family residential real estate loans and certain mortgage-backed securities and collateralized mortgage obligations. FHLB advances are also secured by our holdings of FHLB stock. | ||||||||||||||||||||||
The following table lists the maturity and weighted average interest rates of FHLB advances as of: | ||||||||||||||||||||||
June 30 | December 31 | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Amount | Rate | Amount | Rate | |||||||||||||||||||
Fixed rate advances due 2014 | $ | 10,000 | 0.48 | % | $ | 10,000 | 0.48 | % | ||||||||||||||
Variable rate advances due 2014 | 20,000 | 0.42 | % | — | — | |||||||||||||||||
Fixed rate advances due 2015 | 32,000 | 0.84 | % | 32,000 | 0.84 | % | ||||||||||||||||
Fixed rate advances due 2016 | 10,000 | 2.15 | % | 10,000 | 2.15 | % | ||||||||||||||||
Fixed rate advances due 2017 | 30,000 | 1.95 | % | 30,000 | 1.95 | % | ||||||||||||||||
Fixed rate advances due 2018 | 40,000 | 2.35 | % | 40,000 | 2.35 | % | ||||||||||||||||
Fixed rate advances due 2019 | 20,000 | 3.11 | % | 20,000 | 3.11 | % | ||||||||||||||||
Fixed rate advances due 2020 | 10,000 | 1.98 | % | 10,000 | 1.98 | % | ||||||||||||||||
Fixed rate advances due 2023 | 10,000 | 3.9 | % | 10,000 | 3.9 | % | ||||||||||||||||
Total | $ | 182,000 | 1.84 | % | $ | 162,000 | 2.02 | % | ||||||||||||||
Securities sold under agreements to repurchase are classified as secured borrowings. Securities sold under agreements to repurchase without stated maturity dates generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The securities underlying the agreements have a carrying value and a fair value of $144,683 and $148,930 at June 30, 2014 and December 31, 2013, respectively. Such securities remain under our control. We may be required to provide additional collateral based on the fair value of underlying securities. | ||||||||||||||||||||||
The following table lists the maturity and weighted average interest rates of securities sold under agreements to repurchase with stated maturity dates as of: | ||||||||||||||||||||||
June 30 | December 31 | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Amount | Rate | Amount | Rate | |||||||||||||||||||
Repurchase agreements due 2014 | $ | 767 | 4.84 | % | $ | 10,876 | 3.3 | % | ||||||||||||||
Repurchase agreements due 2015 | 432 | 3.25 | % | 425 | 3.25 | % | ||||||||||||||||
Total | $ | 1,199 | 4.27 | % | $ | 11,301 | 3.3 | % | ||||||||||||||
Securities sold under repurchase agreements without stated maturity dates, federal funds purchased, and FRB Discount Window advances generally mature within one to four days from the transaction date. The following table provides a summary of securities sold under repurchase agreements without stated maturity dates, federal funds purchased, and FRB Discount Window advances borrowings for the three and six month periods ended: | ||||||||||||||||||||||
Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | |||||||||||||||||||||
Maximum Month End Balance | Average Balance | Weighted Average Interest Rate During the Period | Maximum Month End Balance | Average Balance | Weighted Average Interest Rate During the Period | |||||||||||||||||
Securities sold under agreements to repurchase without stated maturity dates | $ | 90,813 | $ | 90,484 | 0.13 | % | $ | 71,668 | $ | 69,692 | 0.15 | % | ||||||||||
Federal funds purchased | 16,500 | 6,849 | 0.48 | % | 13,700 | 6,022 | 0.57 | % | ||||||||||||||
Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | |||||||||||||||||||||
Maximum Month End Balance | Average Balance | Weighted Average Interest Rate During the Period | Maximum Month End Balance | Average Balance | Weighted Average Interest Rate During the Period | |||||||||||||||||
Securities sold under agreements to repurchase without stated maturity dates | $ | 94,741 | $ | 92,412 | 0.13 | % | $ | 71,668 | $ | 65,363 | 0.15 | % | ||||||||||
Federal funds purchased | 16,500 | 6,305 | 0.47 | % | 13,700 | 3,646 | 0.56 | % | ||||||||||||||
We had pledged trading securities, AFS securities, and 1-4 family residential real estate loans in the following amounts at: | ||||||||||||||||||||||
June 30 | December 31 | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Pledged to secure borrowed funds | $ | 295,175 | $ | 320,173 | ||||||||||||||||||
Pledged to secure repurchase agreements | 144,683 | 148,930 | ||||||||||||||||||||
Pledged for public deposits and for other purposes necessary or required by law | 18,446 | 20,922 | ||||||||||||||||||||
Total | $ | 458,304 | $ | 490,025 | ||||||||||||||||||
As of June 30, 2014, we had the ability to borrow up to an additional $84,668, based on assets pledged as collateral. We had no investment securities that are restricted to be pledged for specific purposes. |
Other_Noninterest_Expenses
Other Noninterest Expenses | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Other Noninterest Expenses | ' | |||||||||||||||
Other Noninterest Expenses | ||||||||||||||||
A summary of expenses included in other noninterest expenses is as follows for the: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Marketing and community relations | $ | 211 | $ | 432 | $ | 454 | $ | 674 | ||||||||
FDIC insurance premiums | 221 | 273 | 423 | 545 | ||||||||||||
Directors fees | 183 | 205 | 378 | 404 | ||||||||||||
Audit and related fees | 182 | 162 | 320 | 301 | ||||||||||||
Education and travel | 143 | 116 | 264 | 238 | ||||||||||||
Postage and freight | 90 | 94 | 198 | 193 | ||||||||||||
Printing and supplies | 87 | 99 | 189 | 185 | ||||||||||||
Loan underwriting fees | 92 | 123 | 187 | 239 | ||||||||||||
Consulting fees | 76 | 83 | 167 | 155 | ||||||||||||
All other | 735 | 668 | 1,430 | 1,213 | ||||||||||||
Total other | $ | 2,020 | $ | 2,255 | $ | 4,010 | $ | 4,147 | ||||||||
Federal_Income_Taxes
Federal Income Taxes | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Federal Income Taxes | ' | |||||||||||||||
Federal Income Taxes | ||||||||||||||||
The reconciliation of the provision for federal income taxes and the amount computed at the federal statutory tax rate of 34% of income before federal income tax expense is as follows for the: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income taxes at 34% statutory rate | $ | 1,448 | $ | 1,311 | $ | 2,763 | $ | 2,556 | ||||||||
Effect of nontaxable income | ||||||||||||||||
Interest income on tax exempt municipal securities | (503 | ) | (424 | ) | (997 | ) | (845 | ) | ||||||||
Earnings on corporate owned life insurance policies | (64 | ) | (65 | ) | (127 | ) | (122 | ) | ||||||||
Effect of tax credits | (191 | ) | (196 | ) | (388 | ) | (397 | ) | ||||||||
Other | (43 | ) | (26 | ) | (77 | ) | (52 | ) | ||||||||
Total effect of nontaxable income | (801 | ) | (711 | ) | (1,589 | ) | (1,416 | ) | ||||||||
Effect of nondeductible expenses | 45 | 43 | 78 | 79 | ||||||||||||
Federal income tax expense | $ | 692 | $ | 643 | $ | 1,252 | $ | 1,219 | ||||||||
Defined_Benefit_Pension_Plan
Defined Benefit Pension Plan | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Defined Benefit Pension Plan | ' | |||||||||||||||
Defined Benefit Pension Plan | ||||||||||||||||
We maintain a noncontributory defined benefit pension plan, which was curtailed effective March 1, 2007. As a result of the curtailment, future salary increases are no longer considered (the projected benefit obligation is equal to the accumulated benefit obligation), and plan benefits are based on years of service and the individual employee’s five highest consecutive years of compensation out of the last ten years of service through March 1, 2007. We do not anticipate any contributions to the plan in 2014. We contributed the following to the plan during the three and six month periods ended: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Plan Contributions | $ | — | $ | — | $ | — | $ | 215 | ||||||||
Following are the components of net periodic benefit cost for the: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest cost on benefit obligation | $ | 121 | $ | 112 | $ | 243 | $ | 225 | ||||||||
Expected return on plan assets | (154 | ) | (144 | ) | (308 | ) | (287 | ) | ||||||||
Amortization of unrecognized actuarial net loss | 43 | 82 | 85 | 165 | ||||||||||||
Net periodic benefit cost | $ | 10 | $ | 50 | $ | 20 | $ | 103 | ||||||||
Fair_Value
Fair Value | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Fair Value | ' | |||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||
Following is a description of the valuation methodologies, key inputs, and an indication of the level of the fair value hierarchy in which the assets or liabilities are classified. | ||||||||||||||||||||||||||||||||
Cash and cash equivalents: The carrying amounts of cash and demand deposits due from banks and interest bearing balances due from banks approximate fair values. As such, we classify cash and cash equivalents as Level 1. | ||||||||||||||||||||||||||||||||
Certificates of deposit held in other financial institutions: Certificates of deposit held in other financial institutions include certificates of deposit and other short term interest bearing balances that mature within 3 years. Fair value is determined using prices for similar assets with similar characteristics. As such, we classify certificates of deposits held in other financial institutions as Level 2. | ||||||||||||||||||||||||||||||||
AFS and trading securities: AFS and trading securities are recorded at fair value on a recurring basis. Level 1 fair value measurement is based upon quoted prices for identical instruments. Level 2 fair value measurement is based upon quoted prices for similar instruments. If quoted prices are not available, fair values are measured using independent pricing models or other model based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss and liquidity assumptions. The values for Level 1 and Level 2 investment securities are generally obtained from an independent third party. On a quarterly basis, we compare the values provided to alternative pricing sources. | ||||||||||||||||||||||||||||||||
Mortgage loans AFS: Mortgage loans AFS are carried at the lower of cost or fair value. The fair value of Mortgage loans AFS are based on what price secondary markets are currently offering for portfolios with similar characteristics. As such, we classify Mortgage loans AFS subject to nonrecurring fair value adjustments as Level 2. | ||||||||||||||||||||||||||||||||
Loans: For variable rate loans with no significant change in credit risk, fair values are based on carrying values. Fair values for fixed rate loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. The resulting amounts are adjusted to estimate the effect of changes in the credit quality of borrowers since the loans were originated. As such, we classify loans as Level 3 assets. | ||||||||||||||||||||||||||||||||
We do not record loans at fair value on a recurring basis. However, from time-to-time, loans are classified as impaired and a specific allowance for loan losses may be established. Loans for which it is probable that payment of interest and principal will be significantly different than the contractual terms of the original loan agreement are considered impaired. Once a loan is identified as impaired, we measure the estimated impairment. The fair value of impaired loans is estimated using one of several methods, including the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral, less cost to sell, if the loan is collateral dependent. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. | ||||||||||||||||||||||||||||||||
We review the net realizable values of the underlying collateral for collateral dependent impaired loans on at least a quarterly basis for all loan types. To determine the collateral value, we utilize independent appraisals, broker price opinions, or internal evaluations. We review these valuations to determine whether an additional discount should be applied given the age of market information that may have been considered as well as other factors such as costs to carry and sell an asset if it is determined that the collateral will be liquidated in connection with the ultimate settlement of the loan. We use these valuations to determine if any specific reserves or charge-offs are necessary. We may obtain new valuations in certain circumstances, including when there has been significant deterioration in the condition of the collateral, if the foreclosure process has begun, or if the existing valuation is deemed to be outdated. | ||||||||||||||||||||||||||||||||
The following tables list the quantitative fair value information about impaired loans as of: | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Valuation Techniques | Fair Value | Unobservable Input | Range | |||||||||||||||||||||||||||||
Discount applied to collateral appraisal: | ||||||||||||||||||||||||||||||||
Real Estate | 20% - 30% | |||||||||||||||||||||||||||||||
Equipment | 30% - 40% | |||||||||||||||||||||||||||||||
Discounted appraisal value | $13,352 | Cash crop inventory | 40% | |||||||||||||||||||||||||||||
Other inventory | 50% | |||||||||||||||||||||||||||||||
Accounts receivable | 50% - 75% | |||||||||||||||||||||||||||||||
Liquor license | 75% | |||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Valuation Techniques | Fair Value | Unobservable Input | Range | |||||||||||||||||||||||||||||
Discount applied to collateral appraisal: | ||||||||||||||||||||||||||||||||
Real Estate | 20% - 30% | |||||||||||||||||||||||||||||||
Equipment | 50% | |||||||||||||||||||||||||||||||
Discounted appraisal value | $13,902 | Livestock | 50% | |||||||||||||||||||||||||||||
Cash crop inventory | 50% | |||||||||||||||||||||||||||||||
Other inventory | 75% | |||||||||||||||||||||||||||||||
Accounts receivable | 75% | |||||||||||||||||||||||||||||||
Discount factors with ranges are based on the age of the independent appraisal, broker price opinion, or internal evaluations. | ||||||||||||||||||||||||||||||||
Accrued interest receivable: The carrying amounts of accrued interest receivable approximate fair value. As such, we classify accrued interest receivable as Level 1. | ||||||||||||||||||||||||||||||||
Equity securities without readily determinable fair values: Included in equity securities without readily determinable fair values are FHLB stock and FRB stock as well as our ownership interests in Corporate Settlement Solutions, LLC and Valley Financial Corporation. The investment in Corporate Settlement Solutions, LLC, a title insurance company, was made in the first quarter 2008. We are not the managing entity of Corporate Settlement Solutions, LLC, and therefore, we account for our investment under the equity method of accounting. Valley Financial Corporation is the parent company of 1st State Bank in Saginaw, Michigan, which is a community bank that opened in 2005. We made investments in Valley Financial Corporation in 2004 and in 2007. | ||||||||||||||||||||||||||||||||
The lack of an active market, or other independent sources to validate fair value estimates coupled with the impact of future capital calls and transfer restrictions, is an inherent limitation in the valuation process. As the fair values of these investments are not readily determinable, they are not disclosed under a specific fair value hierarchy; however, they are reviewed quarterly for impairment. If we were to record an impairment adjustment related to these securities, it would be classified as a nonrecurring Level 3 fair value adjustment. During 2014 and 2013, there were no impairments recorded on equity securities without readily determinable fair values. | ||||||||||||||||||||||||||||||||
Foreclosed assets: Upon transfer from the loan portfolio, foreclosed assets (which are included in other assets) are adjusted to and subsequently carried at the lower of carrying value or fair value less costs to sell. Net realizable value is based upon independent market prices, appraised values of the collateral, or management’s estimation of the value of the collateral. Due to the inherent level of estimation in the valuation process, we record foreclosed assets as nonrecurring Level 3. | ||||||||||||||||||||||||||||||||
The table below lists the quantitative fair value information related to foreclosed assets as of: | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Valuation Techniques | Fair Value | Unobservable Input | Range | |||||||||||||||||||||||||||||
Discount applied to collateral appraisal: | ||||||||||||||||||||||||||||||||
Discounted appraisal value | $ | 1,132 | Real Estate | 20% - 30% | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Valuation Techniques | Fair Value | Unobservable Input | Range | |||||||||||||||||||||||||||||
Discount applied to collateral appraisal: | ||||||||||||||||||||||||||||||||
Discounted appraisal value | $ | 1,412 | Real Estate | 20% - 30% | ||||||||||||||||||||||||||||
Discount factors with ranges are based on the age of the independent appraisal, broker price opinion, or internal evaluations. | ||||||||||||||||||||||||||||||||
Goodwill and other intangible assets: Acquisition intangibles and goodwill are evaluated for potential impairment on at least an annual basis. Acquisition intangibles and goodwill are typically qualitatively evaluated to determine if it is more likely than not that the carrying balance is impaired. If it is determined that the carrying balance of acquisition intangibles or goodwill is more likely than not to be impaired, we perform a cash flow valuation to determine the extent of the potential impairment. If the testing resulted in impairment, we would classify goodwill and other acquisition intangibles subjected to nonrecurring fair value adjustments as Level 3. During 2014 and 2013, there were no impairments recorded on goodwill and other acquisition intangibles. | ||||||||||||||||||||||||||||||||
OMSRs: OMSRs (which are included in other assets) are subject to impairment testing. To test for impairment, we utilize a discounted cash flow analysis using interest rates and prepayment speed assumptions currently quoted for comparable instruments and discount rates. If the valuation model reflects a value less than the carrying value, OMSRs are adjusted to fair value through a valuation allowance as determined by the model. As such, we classify OMSRs subject to nonrecurring fair value adjustments as Level 2. | ||||||||||||||||||||||||||||||||
Deposits: The fair value of demand, savings, and money market deposits are, by definition, equal their carrying amounts and are classified as Level 1. Fair values for variable rate certificates of deposit approximate their carrying value. Fair values for fixed rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. As such, fixed rate certificates of deposit are classified as Level 2. | ||||||||||||||||||||||||||||||||
Borrowed funds: The carrying amounts of federal funds purchased, borrowings under overnight repurchase agreements, and other short-term borrowings maturing within ninety days approximate their fair values. The fair values of other borrowed funds are estimated using discounted cash flow analyses based on current incremental borrowing arrangements. As such, borrowed funds are classified as Level 2. | ||||||||||||||||||||||||||||||||
Accrued interest payable: The carrying amounts of accrued interest payable approximate fair value. As such, we classify accrued interest payable as Level 1. | ||||||||||||||||||||||||||||||||
Commitments to extend credit, standby letters of credit, and undisbursed loans: Our commitments to extend credit, standby letters of credit, and undisbursed funds have no carrying amount and are estimated to have no realizable fair value. Historically, a majority of the unused commitments to extend credit have not been drawn upon and, generally, we do not receive fees in connection with these commitments other than standby letter of credit fees, which are not significant. | ||||||||||||||||||||||||||||||||
The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Although we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement. | ||||||||||||||||||||||||||||||||
Estimated Fair Values of Financial Instruments Not Recorded at Fair Value in their Entirety on a Recurring Basis | ||||||||||||||||||||||||||||||||
Disclosure of the estimated fair values of financial instruments, which differ from carrying values, often requires the use of estimates. In cases where quoted market values in an active market are not available, we use present value techniques and other valuation methods to estimate the fair values of our financial instruments. These valuation methods require considerable judgment and the resulting estimates of fair value can be significantly affected by the assumptions made and methods used. | ||||||||||||||||||||||||||||||||
The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis on our consolidated balance sheets are as follows as of: | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Carrying | Estimated | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||
Value | Fair Value | |||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 27,380 | $ | 27,380 | $ | 27,380 | $ | — | $ | — | ||||||||||||||||||||||
Certificates of deposit held in other financial institutions | 580 | 580 | — | 580 | — | |||||||||||||||||||||||||||
Mortgage loans AFS | 340 | 357 | — | 357 | — | |||||||||||||||||||||||||||
Total loans | 816,307 | 802,848 | — | — | 802,848 | |||||||||||||||||||||||||||
Less allowance for loan and lease losses | 10,700 | 10,700 | — | — | 10,700 | |||||||||||||||||||||||||||
Net loans | 805,607 | 792,148 | — | — | 792,148 | |||||||||||||||||||||||||||
Accrued interest receivable | 5,448 | 5,448 | 5,448 | — | — | |||||||||||||||||||||||||||
Equity securities without readily determinable fair values (1) | 19,303 | 19,303 | — | — | — | |||||||||||||||||||||||||||
OMSRs | 2,618 | 2,703 | — | 2,703 | — | |||||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||
Deposits without stated maturities | 609,280 | 609,280 | 609,280 | — | — | |||||||||||||||||||||||||||
Deposits with stated maturities | 451,648 | 453,458 | — | 453,458 | — | |||||||||||||||||||||||||||
Borrowed funds | 279,457 | 263,604 | — | 263,604 | — | |||||||||||||||||||||||||||
Accrued interest payable | 527 | 527 | 527 | — | — | |||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Carrying | Estimated | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||
Value | Fair Value | |||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 41,558 | $ | 41,558 | $ | 41,558 | $ | — | $ | — | ||||||||||||||||||||||
Certificates of deposit held in other financial institutions | 580 | 582 | — | 582 | — | |||||||||||||||||||||||||||
Mortgage loans AFS | 1,104 | 1,123 | — | 1,123 | — | |||||||||||||||||||||||||||
Total loans | 808,037 | 808,246 | — | — | 808,246 | |||||||||||||||||||||||||||
Less allowance for loan and lease losses | 11,500 | 11,500 | — | — | 11,500 | |||||||||||||||||||||||||||
Net loans | 796,537 | 796,746 | — | — | 796,746 | |||||||||||||||||||||||||||
Accrued interest receivable | 5,442 | 5,442 | 5,442 | — | — | |||||||||||||||||||||||||||
Equity securities without readily determinable fair values (1) | 18,293 | 18,293 | — | — | — | |||||||||||||||||||||||||||
OMSRs | 2,555 | 2,667 | — | 2,667 | — | |||||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||
Deposits without stated maturities | 593,754 | 593,754 | 593,754 | — | — | |||||||||||||||||||||||||||
Deposits with stated maturities | 450,012 | 452,803 | — | 452,803 | — | |||||||||||||||||||||||||||
Borrowed funds | 279,326 | 283,060 | — | 283,060 | — | |||||||||||||||||||||||||||
Accrued interest payable | 633 | 633 | 633 | — | — | |||||||||||||||||||||||||||
(1) | Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. If we were to record an impairment adjustment related to these securities, such amount would be classified as a nonrecurring Level 3 fair value adjustment. | |||||||||||||||||||||||||||||||
Financial Instruments Recorded at Fair Value | ||||||||||||||||||||||||||||||||
The table below presents the recorded amount of assets and liabilities measured at fair value on: | ||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Recurring items | ||||||||||||||||||||||||||||||||
Trading securities | ||||||||||||||||||||||||||||||||
States and political subdivisions | $ | — | $ | — | $ | — | $ | — | $ | 525 | $ | — | $ | 525 | $ | — | ||||||||||||||||
AFS securities | ||||||||||||||||||||||||||||||||
Government-sponsored enterprises | 24,104 | — | 24,104 | — | 23,745 | — | 23,745 | — | ||||||||||||||||||||||||
States and political subdivisions | 214,210 | — | 214,210 | — | 201,988 | — | 201,988 | — | ||||||||||||||||||||||||
Auction rate money market preferred | 2,867 | — | 2,867 | — | 2,577 | — | 2,577 | — | ||||||||||||||||||||||||
Preferred stocks | 6,214 | 6,214 | — | — | 5,827 | 5,827 | — | — | ||||||||||||||||||||||||
Mortgage-backed securities | 162,992 | — | 162,992 | — | 144,115 | — | 144,115 | — | ||||||||||||||||||||||||
Collateralized mortgage obligations | 140,131 | — | 140,131 | — | 133,810 | — | 133,810 | — | ||||||||||||||||||||||||
Total AFS securities | 550,518 | 6,214 | 544,304 | — | 512,062 | 5,827 | 506,235 | — | ||||||||||||||||||||||||
Nonrecurring items | ||||||||||||||||||||||||||||||||
Impaired loans (net of the ALLL) | 13,352 | — | — | 13,352 | 13,902 | — | — | 13,902 | ||||||||||||||||||||||||
Foreclosed assets | 1,132 | — | — | 1,132 | 1,412 | — | — | 1,412 | ||||||||||||||||||||||||
Total | $ | 565,002 | $ | 6,214 | $ | 544,304 | $ | 14,484 | $ | 527,901 | $ | 5,827 | $ | 506,760 | $ | 15,314 | ||||||||||||||||
Percent of assets and liabilities measured at fair value | 1.1 | % | 96.34 | % | 2.56 | % | 1.1 | % | 96 | % | 2.9 | % | ||||||||||||||||||||
The following table provides a summary of the changes in fair value of assets and liabilities recorded at fair value through earnings on a recurring basis and changes in assets and liabilities recorded at fair value on a nonrecurring basis, for which gains or losses were recognized in the: | ||||||||||||||||||||||||||||||||
Three Months Ended June 30 | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Trading | Other Gains | Total | Trading | Other Gains | Total | |||||||||||||||||||||||||||
Losses | (Losses) | Losses | (Losses) | |||||||||||||||||||||||||||||
Recurring items | ||||||||||||||||||||||||||||||||
Trading securities | $ | (1 | ) | $ | — | $ | (1 | ) | $ | (8 | ) | $ | — | $ | (8 | ) | ||||||||||||||||
Nonrecurring items | ||||||||||||||||||||||||||||||||
Foreclosed assets | — | (20 | ) | (20 | ) | — | (68 | ) | (68 | ) | ||||||||||||||||||||||
Total | $ | (1 | ) | $ | (20 | ) | $ | (21 | ) | $ | (8 | ) | $ | (68 | ) | $ | (76 | ) | ||||||||||||||
Six Months Ended June 30 | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Trading | Other Gains | Total | Trading | Other Gains | Total | |||||||||||||||||||||||||||
Losses | (Losses) | Losses | (Losses) | |||||||||||||||||||||||||||||
Recurring items | ||||||||||||||||||||||||||||||||
Trading securities | $ | (5 | ) | $ | — | $ | (5 | ) | $ | (18 | ) | $ | — | $ | (18 | ) | ||||||||||||||||
Nonrecurring items | ||||||||||||||||||||||||||||||||
Foreclosed assets | — | (63 | ) | (63 | ) | — | (92 | ) | (92 | ) | ||||||||||||||||||||||
Total | $ | (5 | ) | $ | (63 | ) | $ | (68 | ) | $ | (18 | ) | $ | (92 | ) | $ | (110 | ) |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||
The following table summarizes the changes in AOCI by component for the: | ||||||||||||||||||||||||
Three Months Ended June 30 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Unrealized | Defined | Total | Unrealized | Defined | Total | |||||||||||||||||||
Holding Gains | Benefit | Holding Gains | Benefit | |||||||||||||||||||||
(Losses) on | Pension Plan | (Losses) on | Pension Plan | |||||||||||||||||||||
AFS | AFS | |||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||
Balance, April 1 | $ | (426 | ) | $ | (2,134 | ) | $ | (2,560 | ) | $ | 7,541 | $ | (3,671 | ) | $ | 3,870 | ||||||||
OCI before reclassifications | 4,448 | — | 4,448 | (11,997 | ) | — | (11,997 | ) | ||||||||||||||||
Amounts reclassified from AOCI | — | — | — | — | — | — | ||||||||||||||||||
Subtotal | 4,448 | — | 4,448 | (11,997 | ) | — | (11,997 | ) | ||||||||||||||||
Tax effect | (1,420 | ) | — | (1,420 | ) | 3,979 | — | 3,979 | ||||||||||||||||
OCI, net of tax | 3,028 | — | 3,028 | (8,018 | ) | — | (8,018 | ) | ||||||||||||||||
Balance, June 30 | $ | 2,602 | $ | (2,134 | ) | $ | 468 | $ | (477 | ) | $ | (3,671 | ) | $ | (4,148 | ) | ||||||||
Six Months Ended June 30 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Unrealized | Defined | Total | Unrealized | Defined | Total | |||||||||||||||||||
Holding Gains | Benefit | Holding Gains | Benefit | |||||||||||||||||||||
(Losses) on | Pension Plan | (Losses) on | Pension Plan | |||||||||||||||||||||
AFS | AFS | |||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||
Balance, January 1 | $ | (4,207 | ) | $ | (2,134 | ) | $ | (6,341 | ) | $ | 8,678 | $ | (3,671 | ) | $ | 5,007 | ||||||||
OCI before reclassifications | 9,968 | — | 9,968 | (13,958 | ) | — | (13,958 | ) | ||||||||||||||||
Amounts reclassified from AOCI | — | — | — | (99 | ) | — | (99 | ) | ||||||||||||||||
Subtotal | 9,968 | — | 9,968 | (14,057 | ) | — | (14,057 | ) | ||||||||||||||||
Tax effect | (3,159 | ) | — | (3,159 | ) | 4,902 | — | 4,902 | ||||||||||||||||
OCI, net of tax | 6,809 | — | 6,809 | (9,155 | ) | — | (9,155 | ) | ||||||||||||||||
Balance, June 30 | $ | 2,602 | $ | (2,134 | ) | $ | 468 | $ | (477 | ) | $ | (3,671 | ) | $ | (4,148 | ) | ||||||||
Included in OCI for the three and six month periods ended June 30, 2014 and 2013 are changes in unrealized holding gains and losses related to auction rate money market preferred and preferred stocks. For federal income tax purposes, these securities are considered equity investments. As such, no deferred federal income taxes related to unrealized holding gains or losses are expected or recorded. | ||||||||||||||||||||||||
A summary of the components of unrealized holding gains on AFS securities included in OCI follows for the: | ||||||||||||||||||||||||
Three Months Ended June 30 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Auction Rate Money Market Preferred and Preferred Stocks | All Other AFS Securities | Total | Auction Rate Money Market Preferred and Preferred Stocks | All Other AFS Securities | Total | |||||||||||||||||||
Unrealized gains (losses) arising during the period | $ | 298 | $ | 4,150 | $ | 4,448 | $ | (363 | ) | $ | (11,634 | ) | $ | (11,997 | ) | |||||||||
Reclassification adjustment for net realized (gains) losses included in net income | — | — | — | — | — | — | ||||||||||||||||||
Net unrealized gains (losses) | 298 | 4,150 | 4,448 | (363 | ) | (11,634 | ) | (11,997 | ) | |||||||||||||||
Tax effect | — | (1,420 | ) | (1,420 | ) | — | 3,979 | 3,979 | ||||||||||||||||
Unrealized gains (losses), net of tax | $ | 298 | $ | 2,730 | $ | 3,028 | $ | (363 | ) | $ | (7,655 | ) | $ | (8,018 | ) | |||||||||
Six Months Ended June 30 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Auction Rate Money Market Preferred and Preferred Stocks | All Other AFS Securities | Total | Auction Rate Money Market Preferred and Preferred Stocks | All Other AFS Securities | Total | |||||||||||||||||||
Unrealized gains (losses) arising during the period | $ | 298 | $ | 9,670 | $ | 9,968 | $ | 295 | $ | (14,253 | ) | $ | (13,958 | ) | ||||||||||
Reclassification adjustment for net realized (gains) losses included in net income | — | — | — | — | (99 | ) | (99 | ) | ||||||||||||||||
Net unrealized gains (losses) | 298 | 9,670 | 9,968 | 295 | (14,352 | ) | (14,057 | ) | ||||||||||||||||
Tax effect | — | (3,159 | ) | (3,159 | ) | — | 4,902 | 4,902 | ||||||||||||||||
Unrealized gains (losses), net of tax | $ | 298 | $ | 6,511 | $ | 6,809 | $ | 295 | $ | (9,450 | ) | $ | (9,155 | ) | ||||||||||
The following table details reclassification adjustments and the related affected line items on our interim condensed consolidated statements of income for the noted periods: | ||||||||||||||||||||||||
Details about AOCI components | Amount | Affected Line Item in the | ||||||||||||||||||||||
Reclassified from | Interim Condensed Consolidated | |||||||||||||||||||||||
AOCI | Statements of Income | |||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Unrealized holding gains (losses) on AFS securities | ||||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | 99 | Net gains (losses) on sale of AFS securities | ||||||||||||||||
— | — | — | 99 | Income before federal income tax expense | ||||||||||||||||||||
— | — | — | 34 | Federal income tax expense | ||||||||||||||||||||
$ | — | $ | — | $ | — | $ | 65 | Net income | ||||||||||||||||
Parent_Company_Only_Financial_
Parent Company Only Financial Information | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||
Parent Company Only Financial Information | ' | |||||||||||||||
Parent Company Only Financial Information | ||||||||||||||||
Interim Condensed Balance Sheets | ||||||||||||||||
June 30 | December 31 | |||||||||||||||
2014 | 2013 | |||||||||||||||
ASSETS | ||||||||||||||||
Cash on deposit at the Bank | $ | 961 | $ | 529 | ||||||||||||
AFS securities | 3,522 | 3,542 | ||||||||||||||
Investments in subsidiaries | 121,714 | 110,192 | ||||||||||||||
Premises and equipment | 1,954 | 2,013 | ||||||||||||||
Other assets | 54,274 | 54,223 | ||||||||||||||
TOTAL ASSETS | $ | 182,425 | $ | 170,499 | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Other liabilities | $ | 11,326 | $ | 9,890 | ||||||||||||
Shareholders' equity | 171,099 | 160,609 | ||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 182,425 | $ | 170,499 | ||||||||||||
Interim Condensed Statements of Income | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income | ||||||||||||||||
Dividends from subsidiaries | $ | 1,500 | $ | 1,500 | $ | 3,000 | $ | 3,000 | ||||||||
Interest income | 39 | 41 | 78 | 84 | ||||||||||||
Management fee and other | 722 | 559 | 1,228 | 1,067 | ||||||||||||
Total income | 2,261 | 2,100 | 4,306 | 4,151 | ||||||||||||
Expenses | ||||||||||||||||
Compensation and benefits | 772 | 669 | 1,604 | 1,381 | ||||||||||||
Occupancy and equipment | 107 | 119 | 221 | 230 | ||||||||||||
Audit and related fees | 98 | 93 | 169 | 158 | ||||||||||||
Other | 298 | 297 | 566 | 501 | ||||||||||||
Total expenses | 1,275 | 1,178 | 2,560 | 2,270 | ||||||||||||
Income before income tax benefit and equity in undistributed earnings of subsidiaries | 986 | 922 | 1,746 | 1,881 | ||||||||||||
Federal income tax benefit | 178 | 199 | 432 | 388 | ||||||||||||
Income before equity in undistributed earnings of subsidiaries | 1,164 | 1,121 | 2,178 | 2,269 | ||||||||||||
Undistributed earnings of subsidiaries | 2,401 | 2,092 | 4,696 | 4,031 | ||||||||||||
Net income | $ | 3,565 | $ | 3,213 | $ | 6,874 | $ | 6,300 | ||||||||
Interim Condensed Statements of Cash Flows | ||||||||||||||||
Six Months Ended | ||||||||||||||||
June 30 | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Operating activities | ||||||||||||||||
Net income | $ | 6,874 | $ | 6,300 | ||||||||||||
Adjustments to reconcile net income to cash provided by operations | ||||||||||||||||
Undistributed earnings of subsidiaries | (4,696 | ) | (4,031 | ) | ||||||||||||
Undistributed earnings of equity securities without readily determinable fair values | (10 | ) | 125 | |||||||||||||
Share-based payment awards | 237 | 258 | ||||||||||||||
Depreciation | 65 | 77 | ||||||||||||||
Net amortization of AFS securities | 2 | 1 | ||||||||||||||
Changes in operating assets and liabilities which provided (used) cash | ||||||||||||||||
Other assets | (40 | ) | (26 | ) | ||||||||||||
Accrued interest and other liabilities | 836 | 211 | ||||||||||||||
Net cash provided by (used in) operating activities | 3,268 | 2,915 | ||||||||||||||
Investing activities | ||||||||||||||||
Maturities, calls, and sales of AFS securities | — | 395 | ||||||||||||||
Purchases of premises and equipment | (6 | ) | (127 | ) | ||||||||||||
Advances to subsidiaries, net of repayments | — | 101 | ||||||||||||||
Net cash provided by (used in) investing activities | (6 | ) | 369 | |||||||||||||
Financing activities | ||||||||||||||||
Net increase (decrease) in borrowed funds | 600 | (200 | ) | |||||||||||||
Cash dividends paid on common stock | (3,394 | ) | (3,224 | ) | ||||||||||||
Proceeds from the issuance of common stock | 1,778 | 1,900 | ||||||||||||||
Common stock repurchased | (1,648 | ) | (1,114 | ) | ||||||||||||
Common stock purchased for deferred compensation obligations | (166 | ) | (166 | ) | ||||||||||||
Net cash provided by (used in) financing activities | (2,830 | ) | (2,804 | ) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 432 | 480 | ||||||||||||||
Cash and cash equivalents at beginning of period | 529 | 332 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 961 | $ | 812 | ||||||||||||
Operating_Segments
Operating Segments | 6 Months Ended |
Jun. 30, 2014 | |
Segment Reporting [Abstract] | ' |
Operating Segments | ' |
Operating Segments | |
Our reportable segments are based on legal entities that account for at least 10% of net operating results. The operations of the Bank as of June 30, 2014 and 2013 and each of the three and six month periods then ended, represent approximately 90% or more of our consolidated total assets and operating results. As such, no additional segment reporting is presented. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended | |
Jun. 30, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Consolidation | ' | |
As used in these notes as well as in Management's Discussion and Analysis of Financial Condition and Results of Operations, references to “Isabella,” “we,” “our,” “us,” and similar terms refer to the consolidated entity consisting of Isabella Bank Corporation and its subsidiaries. Isabella Bank Corporation refers solely to the parent holding company, and Isabella Bank refers to Isabella Bank Corporation’s subsidiary, Isabella Bank. | ||
Basis of Accounting | ' | |
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. For further information, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013. | ||
Earnings Per Share | ' | |
Basic earnings per common share represents income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued relate solely to outstanding shares in the Directors Plan. | ||
Available-for-sale Securities | ' | |
The cost basis used to determine the realized gains or losses of AFS securities sold was the amortized cost of the individual investment security as of the trade date. | ||
As of June 30, 2014 and December 31, 2013, we conducted an analysis to determine whether any securities currently in an unrealized loss position should be other-than-temporarily impaired. Such analyses considered, among other factors, the following criteria: | ||
• | Has the value of the investment declined more than what is deemed to be reasonable based on a risk and maturity adjusted discount rate? | |
• | Is the investment credit rating below investment grade? | |
• | Is it probable the issuer will be unable to pay the amount when due? | |
• | Is it more likely than not that we will have to sell the security before recovery of its cost basis? | |
• | Has the duration of the investment been extended? | |
Loans Receivable | ' | |
Commercial and agricultural loans include loans for commercial real estate, commercial operating loans, farmland and agricultural production, and states and political subdivisions. Repayment of these loans is often dependent upon the successful operation and management of a business. We minimize our risk by limiting the amount of credit exposure to any one borrower to $15,000. Borrowers with credit needs of more than $15,000 are serviced through the use of loan participations with other commercial banks. Commercial and agricultural real estate loans generally require loan-to-value limits of less than 80%. Depending upon the type of loan, past credit history, and current operating results, we may require the borrower to pledge accounts receivable, inventory, and property and equipment. Personal guarantees are generally required from the owners of closely held corporations, partnerships, and sole proprietorships. In addition, we require annual financial statements, prepare cash flow analyses, and review credit reports as deemed necessary. | ||
We offer adjustable rate mortgages, construction loans, and fixed rate residential real estate loans which typically have amortization periods up to a maximum of 30 years. Fixed rate residential real estate loans with an amortization of greater than 15 years are generally sold upon origination to Freddie Mac. Fixed rate residential real estate loans with an amortization of 15 years or less may be held in our portfolio or sold upon origination. We consider the direction of interest rates, the sensitivity of our balance sheet to changes in interest rates, and overall loan demand to determine whether or not to sell these loans to Freddie Mac. | ||
Our lending policies generally limit the maximum loan-to-value ratio on residential real estate loans to 95% of the lower of the appraised value of the property or the purchase price, with the condition that private mortgage insurance is required on loans with loan-to-value ratios in excess of 80%. Substantially all loans upon origination have a loan to value ratio of less than 80%. Underwriting criteria for residential real estate loans include: evaluation of the borrower’s ability to make monthly payments, the value of the property securing the loan, ensuring the payment of principal, interest, taxes, and hazard insurance does not exceed 28% of a borrower’s gross income, all debt servicing does not exceed 36% of income, acceptable credit reports, verification of employment, income, and financial information. Appraisals are performed by independent appraisers and reviewed internally. All mortgage loan requests are reviewed by our mortgage loan committee or through a secondary market automated underwriting system; loans in excess of $500 require the approval of our Internal Loan Committee, the Board of Directors’ Loan Committee, or the Board of Directors. | ||
Consumer loans include secured and unsecured personal loans. Loans are amortized for a period of up to 12 years based on the age and value of the underlying collateral. The underwriting emphasis is on a borrower’s perceived intent and ability to pay rather than collateral value. No consumer loans are sold to the secondary market. | ||
Loans that we have the intent and ability to hold in our portfolio are reported at their outstanding principal balance adjusted for any charge-offs, the ALLL, and any deferred fees or costs. Interest income is accrued over the term of the loan based on the principal amount outstanding. Loan origination fees and certain direct loan origination costs are capitalized and recognized as a component of interest income over the term of the loan using the level yield method. | ||
Nonaccrual Loan Status | ' | |
The accrual of interest on commercial, agricultural, and residential real estate loans is typically discontinued at the time the loan is 90 days or more past due unless the credit is well-secured and in the process of collection. Consumer loans are typically charged-off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. | ||
For loans that are placed on nonaccrual status or charged-off, all interest accrued in the current calendar year, but not collected, is reversed against interest income while interest accrued in prior calendar years, but not collected, is charged against the ALLL. Loans are typically returned to accrual status after six months of continuous performance. For impaired loans not classified as nonaccrual, interest income continues to be accrued over the term of the loan based on the principal amount outstanding. | ||
Allowance for Loan Losses | ' | |
The ALLL is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the ALLL when we believe the uncollectability of the loan balance is confirmed. Subsequent recoveries, if any, are credited to the ALLL. | ||
The ALLL is evaluated on a regular basis and is based upon a periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | ||
The primary factors behind the determination of the level of the ALLL are specific allocations for impaired loans, historical loss percentages, as well as unallocated components. Specific allocations for impaired loans are primarily determined based on the difference between the net realizable value of the loan’s underlying collateral or the net present value of the projected payment stream and our recorded investment. Historical loss allocations were calculated at the loan class and segment levels based on a migration analysis of the loan portfolio over the preceding five years. An unallocated component is maintained to cover uncertainties that we believe affect our estimate of probable losses based on qualitative factors. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | ||
Internal Credit Risk Ratings | ' | |
Internally assigned risk ratings are reviewed, at a minimum, when loans are renewed or when management has knowledge of improvements or deterioration of the credit quality of individual credits. Descriptions of the internally assigned risk ratings for commercial and agricultural loans are as follows: | ||
1. EXCELLENT – Substantially Risk Free | ||
Credit has strong financial condition and solid earnings history, characterized by: | ||
• | High liquidity, strong cash flow, low leverage. | |
• | Unquestioned ability to meet all obligations when due. | |
• | Experienced management, with management succession in place. | |
• | Secured by cash. | |
2. HIGH QUALITY – Limited Risk | ||
Credit with sound financial condition and has a positive trend in earnings supplemented by: | ||
• | Favorable liquidity and leverage ratios. | |
• | Ability to meet all obligations when due. | |
• | Management with successful track record. | |
• | Steady and satisfactory earnings history. | |
• | If loan is secured, collateral is of high quality and readily marketable. | |
• | Access to alternative financing. | |
• | Well defined primary and secondary source of repayment. | |
• | If supported by guaranty, the financial strength and liquidity of the guarantor(s) are clearly evident. | |
3. HIGH SATISFACTORY – Reasonable Risk | ||
Credit with satisfactory financial condition and further characterized by: | ||
• | Working capital adequate to support operations. | |
• | Cash flow sufficient to pay debts as scheduled. | |
• | Management experience and depth appear favorable. | |
• | Loan performing according to terms. | |
• | If loan is secured, collateral is acceptable and loan is fully protected. | |
4. LOW SATISFACTORY – Acceptable Risk | ||
Credit with bankable risks, although some signs of weaknesses are shown: | ||
• | Would include most start-up businesses. | |
• | Occasional instances of trade slowness or repayment delinquency – may have been 10-30 days slow within the past year. | |
• | Management’s abilities are apparent, yet unproven. | |
• | Weakness in primary source of repayment with adequate secondary source of repayment. | |
• | Loan structure generally in accordance with policy. | |
• | If secured, loan collateral coverage is marginal. | |
• | Adequate cash flow to service debt, but coverage is low. | |
To be classified as less than satisfactory, only one of the following criteria must be met. | ||
5. SPECIAL MENTION – Criticized | ||
Credit constitutes an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. The credit risk may be relatively minor yet constitute an unwarranted risk in light of the circumstances surrounding a specific loan: | ||
• | Downward trend in sales, profit levels, and margins. | |
• | Impaired working capital position. | |
• | Cash flow is strained in order to meet debt repayment. | |
• | Loan delinquency (30-60 days) and overdrafts may occur. | |
• | Shrinking equity cushion. | |
• | Diminishing primary source of repayment and questionable secondary source. | |
• | Management abilities are questionable. | |
• | Weak industry conditions. | |
• | Litigation pending against the borrower. | |
• | Collateral or guaranty offers limited protection. | |
• | Negative debt service coverage, however the credit is well collateralized and payments are current. | |
6. SUBSTANDARD – Classified | ||
Credit where the borrower’s current net worth, paying capacity, and value of the collateral pledged is inadequate. There is a distinct possibility that we will implement collection procedures if the loan deficiencies are not corrected. In addition, the following characteristics may apply: | ||
• | Sustained losses have severely eroded the equity and cash flow. | |
• | Deteriorating liquidity. | |
• | Serious management problems or internal fraud. | |
• | Original repayment terms liberalized. | |
• | Likelihood of bankruptcy. | |
• | Inability to access other funding sources. | |
• | Reliance on secondary source of repayment. | |
• | Litigation filed against borrower. | |
• | Collateral provides little or no value. | |
• | Requires excessive attention of the loan officer. | |
• | Borrower is uncooperative with loan officer. | |
7. VULNERABLE – Classified | ||
Credit is considered “Substandard” and warrants placing on nonaccrual. Risk of loss is being evaluated and exit strategy options are under review. Other characteristics that may apply: | ||
• | Insufficient cash flow to service debt. | |
• | Minimal or no payments being received. | |
• | Limited options available to avoid the collection process. | |
• | Transition status, expect action will take place to collect loan without immediate progress being made. | |
8. DOUBTFUL – Workout | ||
Credit has all the weaknesses inherent in a “Substandard” loan with the added characteristic that collection and/or liquidation is pending. The possibility of a loss is extremely high, but its classification as a loss is deferred until liquidation procedures are completed, or reasonably estimable. Other characteristics that may apply: | ||
• | Normal operations are severely diminished or have ceased. | |
• | Seriously impaired cash flow. | |
• | Original repayment terms materially altered. | |
• | Secondary source of repayment is inadequate. | |
• | Survivability as a “going concern” is impossible. | |
• | Collection process has begun. | |
• | Bankruptcy petition has been filed. | |
• | Judgments have been filed. | |
• | Portion of the loan balance has been charged-off. | |
Impaired Loans | ' | |
Loans may be classified as impaired if they meet one or more of the following criteria: | ||
1 | There has been a charge-off of its principal balance (in whole or in part), | |
2 | The loan has been classified as a TDR, or | |
3 | The loan is in nonaccrual status. | |
Impairment is measured on a loan-by-loan basis for commercial and agricultural loans by comparing the loan’s outstanding balance to the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral, less cost to sell, if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Impairment is measured on a loan-by-loan basis for residential real estate and consumer loans by comparing the loan’s outstanding balance to the present value of expected future cash flows discounted at the loan’s effective interest rate. | ||
We do not recognize interest income on impaired loans in nonaccrual status. For impaired loans not in nonaccrual status, interest income is recognized daily, as earned, according to the terms of the loan agreement. | ||
Troubled Debt Restructurings | ' | |
Loan modifications are considered to be TDRs when the modification includes terms outside of normal lending practices to a borrower who is experiencing financial difficulties. | ||
Typical concessions granted include, but are not limited to: | ||
1 | Agreeing to interest rates below prevailing market rates for debt with similar risk characteristics. | |
2 | Extending the amortization period beyond typical lending guidelines for debt with similar risk characteristics. | |
3 | Forgiving principal. | |
4 | Forgiving accrued interest. | |
To determine if a borrower is experiencing financial difficulties, we consider if: | ||
1 | The borrower is currently in default on any of their debt. | |
2 | The borrower would likely default on any of their debt if the concession was not granted. | |
3 | The borrower’s cash flow was insufficient to service all of their debt if the concession was not granted. | |
4 | The borrower has declared, or is in the process of declaring, bankruptcy. | |
5 | The borrower is unlikely to continue as a going concern (if the entity is a business). | |
Defined Benefit Pension Plan | ' | |
We maintain a noncontributory defined benefit pension plan, which was curtailed effective March 1, 2007. As a result of the curtailment, future salary increases are no longer considered (the projected benefit obligation is equal to the accumulated benefit obligation), and plan benefits are based on years of service and the individual employee’s five highest consecutive years of compensation out of the last ten years of service through March 1, 2007. |
Computation_of_Earnings_Per_Co1
Computation of Earnings Per Common Share (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation of earnings per common share | ' | |||||||||||||||
Earnings per common share have been computed based on the following: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Average number of common shares outstanding for basic calculation | 7,722,367 | 7,701,042 | 7,721,814 | 7,689,092 | ||||||||||||
Average potential effect of common shares in the Directors Plan (1) | 168,715 | 168,323 | 170,984 | 166,800 | ||||||||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 7,891,082 | 7,869,365 | 7,892,798 | 7,855,892 | ||||||||||||
Net income | $ | 3,565 | $ | 3,213 | $ | 6,874 | $ | 6,300 | ||||||||
Earnings per common share | ||||||||||||||||
Basic | $ | 0.46 | $ | 0.42 | $ | 0.89 | $ | 0.82 | ||||||||
Diluted | $ | 0.45 | $ | 0.41 | $ | 0.87 | $ | 0.8 | ||||||||
(1) | Exclusive of shares held in the |
AFS_Securities_Tables
AFS Securities (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||
Amortized cost and fair value of available-for-sale securities | ' | |||||||||||||||||||||||
The amortized cost and fair value of AFS securities, with gross unrealized gains and losses, are as follows at: | ||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Government sponsored enterprises | $ | 24,706 | $ | 5 | $ | 607 | $ | 24,104 | ||||||||||||||||
States and political subdivisions | 208,564 | 6,962 | 1,316 | 214,210 | ||||||||||||||||||||
Auction rate money market preferred | 3,200 | — | 333 | 2,867 | ||||||||||||||||||||
Preferred stocks | 6,800 | 6 | 592 | 6,214 | ||||||||||||||||||||
Mortgage-backed securities | 162,949 | 1,732 | 1,689 | 162,992 | ||||||||||||||||||||
Collateralized mortgage obligations | 139,883 | 1,652 | 1,404 | 140,131 | ||||||||||||||||||||
Total | $ | 546,102 | $ | 10,357 | $ | 5,941 | $ | 550,518 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | |||||||||||||||||||||||
Government sponsored enterprises | $ | 24,860 | $ | 7 | $ | 1,122 | $ | 23,745 | ||||||||||||||||
States and political subdivisions | 200,323 | 5,212 | 3,547 | 201,988 | ||||||||||||||||||||
Auction rate money market preferred | 3,200 | — | 623 | 2,577 | ||||||||||||||||||||
Preferred stocks | 6,800 | 20 | 993 | 5,827 | ||||||||||||||||||||
Mortgage-backed securities | 147,292 | 657 | 3,834 | 144,115 | ||||||||||||||||||||
Collateralized mortgage obligations | 135,139 | 1,016 | 2,345 | 133,810 | ||||||||||||||||||||
Total | $ | 517,614 | $ | 6,912 | $ | 12,464 | $ | 512,062 | ||||||||||||||||
Amortized cost and fair value of available-for-sale securities by contractual maturity | ' | |||||||||||||||||||||||
The amortized cost and fair value of AFS securities by contractual maturity at June 30, 2014 are as follows: | ||||||||||||||||||||||||
Maturing | Securities with Variable Monthly Payments or Noncontractual Maturities | |||||||||||||||||||||||
Due in | After One | After Five | After | Total | ||||||||||||||||||||
One Year | Year But | Years But | Ten Years | |||||||||||||||||||||
or Less | Within | Within | ||||||||||||||||||||||
Five Years | Ten Years | |||||||||||||||||||||||
Government sponsored enterprises | $ | — | $ | 9,068 | $ | 15,638 | $ | — | $ | — | $ | 24,706 | ||||||||||||
States and political subdivisions | 10,714 | 49,186 | 99,791 | 48,873 | — | 208,564 | ||||||||||||||||||
Auction rate money market preferred | — | — | — | — | 3,200 | 3,200 | ||||||||||||||||||
Preferred stocks | — | — | — | — | 6,800 | 6,800 | ||||||||||||||||||
Mortgage-backed securities | — | — | — | — | 162,949 | 162,949 | ||||||||||||||||||
Collateralized mortgage obligations | — | — | — | — | 139,883 | 139,883 | ||||||||||||||||||
Total amortized cost | $ | 10,714 | $ | 58,254 | $ | 115,429 | $ | 48,873 | $ | 312,832 | $ | 546,102 | ||||||||||||
Fair value | $ | 10,812 | $ | 60,195 | $ | 118,057 | $ | 49,250 | $ | 312,204 | $ | 550,518 | ||||||||||||
Summary of the activity related to sales of available-for-sale securities | ' | |||||||||||||||||||||||
A summary of the sales activity of AFS securities was as follows for the three and six month periods ended: | ||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
June 30 | June 30 | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Proceeds from sales of AFS securities | $ | — | $ | — | $ | — | $ | 9,857 | ||||||||||||||||
Gross realized gains (losses) | $ | — | $ | — | $ | — | $ | 99 | ||||||||||||||||
Applicable income tax expense (benefit) | $ | — | $ | — | $ | — | $ | 34 | ||||||||||||||||
Available-for-sale securities with gross unrealized losses | ' | |||||||||||||||||||||||
Information pertaining to AFS securities with gross unrealized losses at June 30, 2014 and December 31, 2013, respectively, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: | ||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | |||||||||||||||||||||||
Gross | Fair | Gross | Fair | Total | ||||||||||||||||||||
Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
Government sponsored enterprises | $ | — | $ | — | $ | 607 | $ | 23,389 | $ | 607 | ||||||||||||||
States and political subdivisions | 259 | 15,190 | 1,057 | 27,852 | 1,316 | |||||||||||||||||||
Auction rate money market preferred | — | — | 333 | 2,167 | 333 | |||||||||||||||||||
Preferred stocks | — | — | 592 | 3,208 | 592 | |||||||||||||||||||
Mortgage-backed securities | 17 | 9,268 | 1,672 | 65,346 | 1,689 | |||||||||||||||||||
Collateralized mortgage obligations | 82 | 23,739 | 1,322 | 42,518 | 1,404 | |||||||||||||||||||
Total | $ | 358 | $ | 48,197 | $ | 5,583 | $ | 164,480 | $ | 5,941 | ||||||||||||||
Number of securities in an unrealized loss position: | 123 | 116 | 239 | |||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||
Less Than Twelve Months | Twelve Months or More | |||||||||||||||||||||||
Gross | Fair | Gross | Fair | Total | ||||||||||||||||||||
Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||
Government sponsored enterprises | $ | 1,122 | $ | 22,873 | $ | — | $ | — | $ | 1,122 | ||||||||||||||
States and political subdivisions | 2,566 | 42,593 | 981 | 6,115 | 3,547 | |||||||||||||||||||
Auction rate money market preferred | — | — | 623 | 2,577 | 623 | |||||||||||||||||||
Preferred stocks | — | — | 993 | 2,807 | 993 | |||||||||||||||||||
Mortgage-backed securities | 2,424 | 101,816 | 1,410 | 21,662 | 3,834 | |||||||||||||||||||
Collateralized mortgage obligations | 2,345 | 84,478 | — | — | 2,345 | |||||||||||||||||||
Total | $ | 8,457 | $ | 251,760 | $ | 4,007 | $ | 33,161 | $ | 12,464 | ||||||||||||||
Number of securities in an unrealized loss position: | 182 | 19 | 201 | |||||||||||||||||||||
Loans_and_ALLL_Tables
Loans and ALLL (Tables) | 6 Months Ended | |||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
Summary of changes in the ALLL and the recorded investment in loans by segments | ' | |||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
Commercial | Agricultural | Residential Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||
April 1, 2013 | $ | 6,897 | $ | 321 | $ | 3,634 | $ | 732 | $ | 325 | $ | 11,909 | ||||||||||||||||
Loans charged-off | (234 | ) | — | (397 | ) | (88 | ) | — | (719 | ) | ||||||||||||||||||
Recoveries | 166 | — | 61 | 68 | — | 295 | ||||||||||||||||||||||
Provision for loan losses | (357 | ) | 14 | 378 | (65 | ) | 245 | 215 | ||||||||||||||||||||
June 30, 2013 | $ | 6,472 | $ | 335 | $ | 3,676 | $ | 647 | $ | 570 | $ | 11,700 | ||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||
Commercial | Agricultural | Residential Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||
January 1, 2013 | $ | 6,862 | $ | 407 | $ | 3,627 | $ | 666 | $ | 374 | $ | 11,936 | ||||||||||||||||
Loans charged-off | (445 | ) | — | (587 | ) | (209 | ) | — | (1,241 | ) | ||||||||||||||||||
Recoveries | 223 | — | 114 | 153 | — | 490 | ||||||||||||||||||||||
Provision for loan losses | (168 | ) | (72 | ) | 522 | 37 | 196 | 515 | ||||||||||||||||||||
June 30, 2013 | $ | 6,472 | $ | 335 | $ | 3,676 | $ | 647 | $ | 570 | $ | 11,700 | ||||||||||||||||
A summary of changes in the ALLL and the recorded investment in loans by segments follows: | ||||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Commercial | Agricultural | Residential Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||
April 1, 2014 | $ | 4,814 | $ | 425 | $ | 4,727 | $ | 630 | $ | 504 | $ | 11,100 | ||||||||||||||||
Loans charged-off | (79 | ) | — | (264 | ) | (68 | ) | — | (411 | ) | ||||||||||||||||||
Recoveries | 92 | — | 86 | 33 | — | 211 | ||||||||||||||||||||||
Provision for loan losses | 185 | (206 | ) | (568 | ) | 207 | 182 | (200 | ) | |||||||||||||||||||
June 30, 2014 | $ | 5,012 | $ | 219 | $ | 3,981 | $ | 802 | $ | 686 | $ | 10,700 | ||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||
Commercial | Agricultural | Residential Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||
January 1, 2014 | $ | 6,048 | $ | 434 | $ | 3,845 | $ | 639 | $ | 534 | $ | 11,500 | ||||||||||||||||
Loans charged-off | (271 | ) | (31 | ) | (377 | ) | (182 | ) | — | (861 | ) | |||||||||||||||||
Recoveries | 306 | — | 122 | 75 | — | 503 | ||||||||||||||||||||||
Provision for loan losses | (1,071 | ) | (184 | ) | 391 | 270 | 152 | (442 | ) | |||||||||||||||||||
June 30, 2014 | $ | 5,012 | $ | 219 | $ | 3,981 | $ | 802 | $ | 686 | $ | 10,700 | ||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | ' | |||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | ||||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||
Commercial | Agricultural | Residential Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||
ALLL | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,633 | $ | 36 | $ | 2,270 | $ | 1 | $ | — | $ | 3,940 | ||||||||||||||||
Collectively evaluated for impairment | 3,379 | 183 | 1,711 | 801 | 686 | 6,760 | ||||||||||||||||||||||
Total | $ | 5,012 | $ | 219 | $ | 3,981 | $ | 802 | $ | 686 | $ | 10,700 | ||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 13,164 | $ | 1,583 | $ | 12,906 | $ | 74 | $ | 27,727 | ||||||||||||||||||
Collectively evaluated for impairment | 394,627 | 96,078 | 265,639 | 32,236 | 788,580 | |||||||||||||||||||||||
Total | $ | 407,791 | $ | 97,661 | $ | 278,545 | $ | 32,310 | $ | 816,307 | ||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Commercial | Agricultural | Residential Real Estate | Consumer | Unallocated | Total | |||||||||||||||||||||||
ALLL | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,035 | $ | 30 | $ | 2,287 | $ | — | $ | — | $ | 4,352 | ||||||||||||||||
Collectively evaluated for impairment | 4,013 | 404 | 1,558 | 639 | 534 | 7,148 | ||||||||||||||||||||||
Total | $ | 6,048 | $ | 434 | $ | 3,845 | $ | 639 | $ | 534 | $ | 11,500 | ||||||||||||||||
Loans | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 13,816 | $ | 1,538 | $ | 14,302 | $ | 119 | $ | 29,775 | ||||||||||||||||||
Collectively evaluated for impairment | 378,288 | 91,051 | 275,629 | 33,294 | 778,262 | |||||||||||||||||||||||
Total | $ | 392,104 | $ | 92,589 | $ | 289,931 | $ | 33,413 | $ | 808,037 | ||||||||||||||||||
Credit quality indicators for commercial and agricultural credit exposures | ' | |||||||||||||||||||||||||||
The following table displays the credit quality indicators for commercial and agricultural credit exposures based on internally assigned credit ratings as of: | ||||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||
Commercial | Agricultural | |||||||||||||||||||||||||||
Real Estate | Other | Total | Real Estate | Other | Total | |||||||||||||||||||||||
Rating | ||||||||||||||||||||||||||||
2 - High quality | $ | 15,038 | $ | 16,364 | $ | 31,402 | $ | 5,619 | $ | 3,817 | $ | 9,436 | ||||||||||||||||
3 - High satisfactory | 92,014 | 48,135 | 140,149 | 25,840 | 12,843 | 38,683 | ||||||||||||||||||||||
4 - Low satisfactory | 166,155 | 42,561 | 208,716 | 29,461 | 15,804 | 45,265 | ||||||||||||||||||||||
5 - Special mention | 9,816 | 1,153 | 10,969 | 1,810 | 318 | 2,128 | ||||||||||||||||||||||
6 - Substandard | 13,557 | 145 | 13,702 | 1,848 | 186 | 2,034 | ||||||||||||||||||||||
7 - Vulnerable | 2,605 | 234 | 2,839 | 115 | — | 115 | ||||||||||||||||||||||
8 - Doubtful | — | 14 | 14 | — | — | — | ||||||||||||||||||||||
Total | $ | 299,185 | $ | 108,606 | $ | 407,791 | $ | 64,693 | $ | 32,968 | $ | 97,661 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Commercial | Agricultural | |||||||||||||||||||||||||||
Real Estate | Other | Total | Real Estate | Other | Total | |||||||||||||||||||||||
Rating | ||||||||||||||||||||||||||||
2 - High quality | $ | 18,671 | $ | 14,461 | $ | 33,132 | $ | 3,527 | $ | 3,235 | $ | 6,762 | ||||||||||||||||
3 - High satisfactory | 91,323 | 39,403 | 130,726 | 26,015 | 17,000 | 43,015 | ||||||||||||||||||||||
4 - Low satisfactory | 149,921 | 43,809 | 193,730 | 26,874 | 10,902 | 37,776 | ||||||||||||||||||||||
5 - Special mention | 13,747 | 1,843 | 15,590 | 1,609 | 922 | 2,531 | ||||||||||||||||||||||
6 - Substandard | 16,974 | 473 | 17,447 | 1,232 | 1,273 | 2,505 | ||||||||||||||||||||||
7 - Vulnerable | 1,041 | 238 | 1,279 | — | — | — | ||||||||||||||||||||||
8 - Doubtful | 183 | 17 | 200 | — | — | — | ||||||||||||||||||||||
Total | $ | 291,860 | $ | 100,244 | $ | 392,104 | $ | 59,257 | $ | 33,332 | $ | 92,589 | ||||||||||||||||
Summary of past due and current loans | ' | |||||||||||||||||||||||||||
The following tables summarize the past due and current loans as of: | ||||||||||||||||||||||||||||
30-Jun-14 | ||||||||||||||||||||||||||||
Accruing Interest | Total Past Due and Nonaccrual | |||||||||||||||||||||||||||
and Past Due: | ||||||||||||||||||||||||||||
30-59 | 60-89 | 90 Days | Nonaccrual | Current | Total | |||||||||||||||||||||||
Days | Days | or More | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Commercial real estate | $ | 857 | $ | 332 | $ | — | $ | 2,605 | $ | 3,794 | $ | 295,391 | $ | 299,185 | ||||||||||||||
Commercial other | 257 | 13 | 28 | 234 | 532 | 108,074 | 108,606 | |||||||||||||||||||||
Total commercial | 1,114 | 345 | 28 | 2,839 | 4,326 | 403,465 | 407,791 | |||||||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||
Agricultural real estate | 208 | — | — | 115 | 323 | 64,370 | 64,693 | |||||||||||||||||||||
Agricultural other | 312 | 84 | — | — | 396 | 32,572 | 32,968 | |||||||||||||||||||||
Total agricultural | 520 | 84 | — | 115 | 719 | 96,942 | 97,661 | |||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Senior liens | 1,558 | 766 | 91 | 1,239 | 3,654 | 222,355 | 226,009 | |||||||||||||||||||||
Junior liens | 311 | 18 | — | 23 | 352 | 11,984 | 12,336 | |||||||||||||||||||||
Home equity lines of credit | 246 | — | — | 361 | 607 | 39,593 | 40,200 | |||||||||||||||||||||
Total residential real estate | 2,115 | 784 | 91 | 1,623 | 4,613 | 273,932 | 278,545 | |||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Secured | 46 | — | — | 10 | 56 | 27,827 | 27,883 | |||||||||||||||||||||
Unsecured | 38 | 4 | — | — | 42 | 4,385 | 4,427 | |||||||||||||||||||||
Total consumer | 84 | 4 | — | 10 | 98 | 32,212 | 32,310 | |||||||||||||||||||||
Total | $ | 3,833 | $ | 1,217 | $ | 119 | $ | 4,587 | $ | 9,756 | $ | 806,551 | $ | 816,307 | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
Accruing Interest | Total Past Due and Nonaccrual | |||||||||||||||||||||||||||
and Past Due: | ||||||||||||||||||||||||||||
30-59 | 60-89 | 90 Days | Nonaccrual | Current | Total | |||||||||||||||||||||||
Days | Days | or More | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||
Commercial real estate | $ | 1,226 | $ | 296 | $ | — | $ | 1,136 | $ | 2,658 | $ | 289,202 | $ | 291,860 | ||||||||||||||
Commercial other | 368 | 15 | 13 | 238 | 634 | 99,610 | 100,244 | |||||||||||||||||||||
Total commercial | 1,594 | 311 | 13 | 1,374 | 3,292 | 388,812 | 392,104 | |||||||||||||||||||||
Agricultural | ||||||||||||||||||||||||||||
Agricultural real estate | 34 | 295 | — | — | 329 | 58,928 | 59,257 | |||||||||||||||||||||
Agricultural other | — | — | — | — | — | 33,332 | 33,332 | |||||||||||||||||||||
Total agricultural | 34 | 295 | — | — | 329 | 92,260 | 92,589 | |||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Senior liens | 3,441 | 986 | 129 | 1,765 | 6,321 | 229,865 | 236,186 | |||||||||||||||||||||
Junior liens | 408 | 44 | — | 29 | 481 | 13,074 | 13,555 | |||||||||||||||||||||
Home equity lines of credit | 181 | — | — | 25 | 206 | 39,984 | 40,190 | |||||||||||||||||||||
Total residential real estate | 4,030 | 1,030 | 129 | 1,819 | 7,008 | 282,923 | 289,931 | |||||||||||||||||||||
Consumer | ||||||||||||||||||||||||||||
Secured | 167 | 11 | — | 50 | 228 | 28,444 | 28,672 | |||||||||||||||||||||
Unsecured | 25 | 5 | — | 1 | 31 | 4,710 | 4,741 | |||||||||||||||||||||
Total consumer | 192 | 16 | — | 51 | 259 | 33,154 | 33,413 | |||||||||||||||||||||
Total | $ | 5,850 | $ | 1,652 | $ | 142 | $ | 3,244 | $ | 10,888 | $ | 797,149 | $ | 808,037 | ||||||||||||||
Information pertaining to impaired loans | ' | |||||||||||||||||||||||||||
The following is a summary of information pertaining to impaired loans as of: | ||||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||||
Outstanding Balance | Unpaid Principal Balance | Valuation Allowance | Outstanding Balance | Unpaid Principal Balance | Valuation Allowance | |||||||||||||||||||||||
Impaired loans with a valuation allowance | ||||||||||||||||||||||||||||
Commercial real estate | $ | 6,512 | $ | 6,720 | $ | 1,621 | $ | 6,748 | $ | 6,888 | $ | 1,915 | ||||||||||||||||
Commercial other | 629 | 848 | 12 | 521 | 521 | 120 | ||||||||||||||||||||||
Agricultural real estate | 204 | 204 | 36 | 90 | 90 | 30 | ||||||||||||||||||||||
Residential real estate senior liens | 12,454 | 13,727 | 2,242 | 14,061 | 15,315 | 2,278 | ||||||||||||||||||||||
Residential real estate junior liens | 92 | 102 | 19 | 48 | 64 | 9 | ||||||||||||||||||||||
Home equity lines of credit | 360 | 660 | 9 | — | — | — | ||||||||||||||||||||||
Consumer secured | 64 | 64 | 1 | — | — | — | ||||||||||||||||||||||
Total impaired loans with a valuation allowance | 20,315 | 22,325 | 3,940 | 21,468 | 22,878 | 4,352 | ||||||||||||||||||||||
Impaired loans without a valuation allowance | ||||||||||||||||||||||||||||
Commercial real estate | 5,708 | 6,326 | 5,622 | 6,499 | ||||||||||||||||||||||||
Commercial other | 315 | 356 | 925 | 1,035 | ||||||||||||||||||||||||
Agricultural real estate | 1,361 | 1,361 | 1,370 | 1,370 | ||||||||||||||||||||||||
Agricultural other | 18 | 138 | 78 | 198 | ||||||||||||||||||||||||
Home equity lines of credit | — | — | 193 | 493 | ||||||||||||||||||||||||
Consumer secured | 10 | 10 | 119 | 148 | ||||||||||||||||||||||||
Total impaired loans without a valuation allowance | 7,412 | 8,191 | 8,307 | 9,743 | ||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||||
Commercial | 13,164 | 14,250 | 1,633 | 13,816 | 14,943 | 2,035 | ||||||||||||||||||||||
Agricultural | 1,583 | 1,703 | 36 | 1,538 | 1,658 | 30 | ||||||||||||||||||||||
Residential real estate | 12,906 | 14,489 | 2,270 | 14,302 | 15,872 | 2,287 | ||||||||||||||||||||||
Consumer | 74 | 74 | 1 | 119 | 148 | — | ||||||||||||||||||||||
Total impaired loans | $ | 27,727 | $ | 30,516 | $ | 3,940 | $ | 29,775 | $ | 32,621 | $ | 4,352 | ||||||||||||||||
The following is a summary of information pertaining to impaired loans for the three and six month periods ended: | ||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
June 30, 2014 | June 30, 2014 | |||||||||||||||||||||||||||
Average Outstanding Balance | Interest Income Recognized | Average Outstanding Balance | Interest Income Recognized | |||||||||||||||||||||||||
Impaired loans with a valuation allowance | ||||||||||||||||||||||||||||
Commercial real estate | $ | 6,644 | $ | 91 | $ | 6,701 | $ | 185 | ||||||||||||||||||||
Commercial other | 852 | 11 | 825 | 29 | ||||||||||||||||||||||||
Agricultural real estate | 147 | (1 | ) | 118 | — | |||||||||||||||||||||||
Agricultural other | — | — | — | — | ||||||||||||||||||||||||
Residential real estate senior liens | 12,786 | 126 | 13,188 | 264 | ||||||||||||||||||||||||
Residential real estate junior liens | 68 | 1 | 57 | 1 | ||||||||||||||||||||||||
Home equity lines of credit | 265 | 10 | 175 | 11 | ||||||||||||||||||||||||
Consumer secured | 63 | 1 | 77 | 2 | ||||||||||||||||||||||||
Total impaired loans with a valuation allowance | 20,825 | 239 | 21,141 | 492 | ||||||||||||||||||||||||
Impaired loans without a valuation allowance | ||||||||||||||||||||||||||||
Commercial real estate | 5,819 | 91 | 5,797 | 193 | ||||||||||||||||||||||||
Commercial other | 286 | 1 | 438 | 7 | ||||||||||||||||||||||||
Agricultural real estate | 1,405 | 21 | 1,407 | 37 | ||||||||||||||||||||||||
Agricultural other | 131 | — | 146 | 28 | ||||||||||||||||||||||||
Home equity lines of credit | — | — | 48 | — | ||||||||||||||||||||||||
Consumer secured | 5 | — | 3 | — | ||||||||||||||||||||||||
Total impaired loans without a valuation allowance | 7,646 | 113 | 7,839 | 265 | ||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||||
Commercial | 13,601 | 194 | 13,761 | 414 | ||||||||||||||||||||||||
Agricultural | 1,683 | 20 | 1,671 | 65 | ||||||||||||||||||||||||
Residential real estate | 13,119 | 137 | 13,468 | 276 | ||||||||||||||||||||||||
Consumer | 68 | 1 | 80 | 2 | ||||||||||||||||||||||||
Total impaired loans | $ | 28,471 | $ | 352 | $ | 28,980 | $ | 757 | ||||||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
June 30, 2013 | June 30, 2013 | |||||||||||||||||||||||||||
Average Outstanding Balance | Interest Income Recognized | Average Outstanding Balance | Interest Income Recognized | |||||||||||||||||||||||||
Impaired loans with a valuation allowance | ||||||||||||||||||||||||||||
Commercial real estate | $ | 7,990 | $ | 102 | $ | 8,084 | $ | 221 | ||||||||||||||||||||
Commercial other | 764 | 37 | 932 | 38 | ||||||||||||||||||||||||
Agricultural real estate | 91 | 1 | 124 | 4 | ||||||||||||||||||||||||
Agricultural other | — | — | 105 | — | ||||||||||||||||||||||||
Residential real estate senior liens | 10,466 | 110 | 10,460 | 209 | ||||||||||||||||||||||||
Residential real estate junior liens | 85 | 1 | 85 | 1 | ||||||||||||||||||||||||
Home equity lines of credit | — | — | — | — | ||||||||||||||||||||||||
Consumer secured | — | — | — | — | ||||||||||||||||||||||||
Total impaired loans with a valuation allowance | 19,396 | 251 | 19,790 | 473 | ||||||||||||||||||||||||
Impaired loans without a valuation allowance | ||||||||||||||||||||||||||||
Commercial real estate | 3,954 | 85 | 3,790 | 158 | ||||||||||||||||||||||||
Commercial other | 1,020 | 19 | 1,126 | 59 | ||||||||||||||||||||||||
Agricultural real estate | 133 | 2 | 67 | 2 | ||||||||||||||||||||||||
Agricultural other | 458 | (11 | ) | 423 | (4 | ) | ||||||||||||||||||||||
Home equity lines of credit | 179 | 5 | 181 | 9 | ||||||||||||||||||||||||
Consumer secured | 63 | 1 | 68 | 2 | ||||||||||||||||||||||||
Total impaired loans without a valuation allowance | 5,807 | 101 | 5,655 | 226 | ||||||||||||||||||||||||
Impaired loans | ||||||||||||||||||||||||||||
Commercial | 13,728 | 243 | 13,932 | 476 | ||||||||||||||||||||||||
Agricultural | 682 | (8 | ) | 719 | 2 | |||||||||||||||||||||||
Residential real estate | 10,730 | 116 | 10,726 | 219 | ||||||||||||||||||||||||
Consumer | 63 | 1 | 68 | 2 | ||||||||||||||||||||||||
Total impaired loans | $ | 25,203 | $ | 352 | $ | 25,445 | $ | 699 | ||||||||||||||||||||
Information pertaining to TDR's | ' | |||||||||||||||||||||||||||
The following is a summary of TDR loan balances as of: | ||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
TDRs | $ | 24,192 | $ | 25,865 | ||||||||||||||||||||||||
The following is a summary of information pertaining to TDRs granted in the: | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||
Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | |||||||||||||||||||||||
Commercial other | 1 | $ | 8 | $ | 8 | 5 | $ | 363 | $ | 363 | ||||||||||||||||||
Agricultural other | — | — | — | — | — | — | ||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Senior liens | 3 | 170 | 170 | 12 | 661 | 661 | ||||||||||||||||||||||
Junior liens | 1 | 41 | 41 | 1 | 41 | 41 | ||||||||||||||||||||||
Home equity lines of credit | 1 | 160 | 160 | 1 | 160 | 160 | ||||||||||||||||||||||
Total residential real estate | 5 | 371 | 371 | 14 | 862 | 862 | ||||||||||||||||||||||
Consumer unsecured | 2 | 8 | 8 | 3 | 8 | 8 | ||||||||||||||||||||||
Total | 8 | $ | 387 | $ | 387 | 22 | $ | 1,233 | $ | 1,233 | ||||||||||||||||||
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||
Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Post-Modification Recorded Investment | |||||||||||||||||||||||
Commercial other | 7 | $ | 3,153 | $ | 2,957 | 7 | $ | 3,153 | $ | 2,957 | ||||||||||||||||||
Agricultural other | — | — | — | 1 | 134 | 134 | ||||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Senior liens | 7 | 635 | 635 | 15 | 1,435 | 1,418 | ||||||||||||||||||||||
Junior liens | — | — | — | — | — | — | ||||||||||||||||||||||
Home equity lines of credit | — | — | — | — | — | — | ||||||||||||||||||||||
Total residential real estate | 7 | 635 | 635 | 15 | 1,435 | 1,418 | ||||||||||||||||||||||
Consumer unsecured | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 14 | $ | 3,788 | $ | 3,592 | 23 | $ | 4,722 | $ | 4,509 | ||||||||||||||||||
The following tables summarize concessions we granted to borrowers in financial difficulty for the: | ||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | Six Months Ended June 30, 2014 | |||||||||||||||||||||||||||
Below Market Interest Rate | Below Market Interest Rate and Extension of Amortization Period | Below Market Interest Rate | Below Market Interest Rate and Extension of Amortization Period | |||||||||||||||||||||||||
Number of Loans | Pre-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | |||||||||||||||||||||
Commercial other | — | $ | — | 1 | $ | 8 | 4 | $ | 355 | 1 | $ | 8 | ||||||||||||||||
Agricultural other | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Senior liens | 1 | 48 | 2 | 122 | 3 | 98 | 9 | 563 | ||||||||||||||||||||
Junior liens | — | — | 1 | 41 | — | — | 1 | 41 | ||||||||||||||||||||
Home equity lines of credit | 1 | 160 | — | — | 1 | 160 | — | — | ||||||||||||||||||||
Total residential real estate | 2 | 208 | 3 | 163 | 4 | 258 | 10 | 604 | ||||||||||||||||||||
Consumer unsecured | 1 | 5 | 1 | 3 | 2 | 5 | 1 | 3 | ||||||||||||||||||||
Total | 3 | $ | 213 | 5 | $ | 174 | 10 | $ | 618 | 12 | $ | 615 | ||||||||||||||||
Three Months Ended June 30, 2013 | Six Months Ended June 30, 2013 | |||||||||||||||||||||||||||
Below Market Interest Rate | Below Market Interest Rate and Extension of Amortization Period | Below Market Interest Rate | Below Market Interest Rate and Extension of Amortization Period | |||||||||||||||||||||||||
Number of Loans | Pre-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | Number of Loans | Pre-Modification Recorded Investment | |||||||||||||||||||||
Commercial other | 3 | $ | 1,357 | 4 | $ | 1,796 | 3 | $ | 1,357 | 4 | $ | 1,796 | ||||||||||||||||
Agricultural other | — | — | — | — | 1 | 134 | — | — | ||||||||||||||||||||
Residential real estate | ||||||||||||||||||||||||||||
Senior liens | 4 | 414 | 3 | 221 | 7 | 625 | 8 | 810 | ||||||||||||||||||||
Junior liens | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Home equity lines of credit | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total residential real estate | 4 | 414 | 3 | 221 | 7 | 625 | 8 | 810 | ||||||||||||||||||||
Consumer unsecured | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total | 7 | $ | 1,771 | 7 | $ | 2,017 | 11 | $ | 2,116 | 12 | $ | 2,606 | ||||||||||||||||
Equity_Securities_Without_Read1
Equity Securities Without Readily Determinable Fair Values (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Equity Method And Other Investments [Abstract] | ' | |||||||
Schedule of equity method and other investments | ' | |||||||
Equity securities without readily determinable fair values consist of the following as of: | ||||||||
June 30 | December 31 | |||||||
2014 | 2013 | |||||||
FHLB Stock | $ | 9,100 | $ | 8,100 | ||||
Corporate Settlement Solutions, LLC | 6,983 | 6,970 | ||||||
FRB Stock | 1,879 | 1,879 | ||||||
Valley Financial Corporation | 1,000 | 1,000 | ||||||
Other | 341 | 344 | ||||||
Total | $ | 19,303 | $ | 18,293 | ||||
Borrowed_Funds_Tables
Borrowed Funds (Tables) | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||||||||||
Summary of borrowed funds | ' | |||||||||||||||||||||
Borrowed funds consist of the following obligations as of: | ||||||||||||||||||||||
June 30 | December 31 | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Amount | Rate | Amount | Rate | |||||||||||||||||||
FHLB advances | $ | 182,000 | 1.84 | % | $ | 162,000 | 2.02 | % | ||||||||||||||
Securities sold under agreements to repurchase without stated maturity dates | 87,058 | 0.13 | % | 106,025 | 0.13 | % | ||||||||||||||||
Securities sold under agreements to repurchase with stated maturity dates | 1,199 | 4.27 | % | 11,301 | 3.3 | % | ||||||||||||||||
Federal funds purchased | 9,200 | 0.39 | % | — | — | |||||||||||||||||
Total | $ | 279,457 | 1.27 | % | $ | 279,326 | 1.35 | % | ||||||||||||||
Federal Home Loan Bank, Advances | ' | |||||||||||||||||||||
The following table lists the maturity and weighted average interest rates of FHLB advances as of: | ||||||||||||||||||||||
June 30 | December 31 | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Amount | Rate | Amount | Rate | |||||||||||||||||||
Fixed rate advances due 2014 | $ | 10,000 | 0.48 | % | $ | 10,000 | 0.48 | % | ||||||||||||||
Variable rate advances due 2014 | 20,000 | 0.42 | % | — | — | |||||||||||||||||
Fixed rate advances due 2015 | 32,000 | 0.84 | % | 32,000 | 0.84 | % | ||||||||||||||||
Fixed rate advances due 2016 | 10,000 | 2.15 | % | 10,000 | 2.15 | % | ||||||||||||||||
Fixed rate advances due 2017 | 30,000 | 1.95 | % | 30,000 | 1.95 | % | ||||||||||||||||
Fixed rate advances due 2018 | 40,000 | 2.35 | % | 40,000 | 2.35 | % | ||||||||||||||||
Fixed rate advances due 2019 | 20,000 | 3.11 | % | 20,000 | 3.11 | % | ||||||||||||||||
Fixed rate advances due 2020 | 10,000 | 1.98 | % | 10,000 | 1.98 | % | ||||||||||||||||
Fixed rate advances due 2023 | 10,000 | 3.9 | % | 10,000 | 3.9 | % | ||||||||||||||||
Total | $ | 182,000 | 1.84 | % | $ | 162,000 | 2.02 | % | ||||||||||||||
Schedule of maturity and weighted average interest rates | ' | |||||||||||||||||||||
The following table lists the maturity and weighted average interest rates of securities sold under agreements to repurchase with stated maturity dates as of: | ||||||||||||||||||||||
June 30 | December 31 | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Amount | Rate | Amount | Rate | |||||||||||||||||||
Repurchase agreements due 2014 | $ | 767 | 4.84 | % | $ | 10,876 | 3.3 | % | ||||||||||||||
Repurchase agreements due 2015 | 432 | 3.25 | % | 425 | 3.25 | % | ||||||||||||||||
Total | $ | 1,199 | 4.27 | % | $ | 11,301 | 3.3 | % | ||||||||||||||
Summary of short term borrowings | ' | |||||||||||||||||||||
The following table provides a summary of securities sold under repurchase agreements without stated maturity dates, federal funds purchased, and FRB Discount Window advances borrowings for the three and six month periods ended: | ||||||||||||||||||||||
Three Months Ended June 30, 2014 | Three Months Ended June 30, 2013 | |||||||||||||||||||||
Maximum Month End Balance | Average Balance | Weighted Average Interest Rate During the Period | Maximum Month End Balance | Average Balance | Weighted Average Interest Rate During the Period | |||||||||||||||||
Securities sold under agreements to repurchase without stated maturity dates | $ | 90,813 | $ | 90,484 | 0.13 | % | $ | 71,668 | $ | 69,692 | 0.15 | % | ||||||||||
Federal funds purchased | 16,500 | 6,849 | 0.48 | % | 13,700 | 6,022 | 0.57 | % | ||||||||||||||
Six Months Ended June 30, 2014 | Six Months Ended June 30, 2013 | |||||||||||||||||||||
Maximum Month End Balance | Average Balance | Weighted Average Interest Rate During the Period | Maximum Month End Balance | Average Balance | Weighted Average Interest Rate During the Period | |||||||||||||||||
Securities sold under agreements to repurchase without stated maturity dates | $ | 94,741 | $ | 92,412 | 0.13 | % | $ | 71,668 | $ | 65,363 | 0.15 | % | ||||||||||
Federal funds purchased | 16,500 | 6,305 | 0.47 | % | 13,700 | 3,646 | 0.56 | % | ||||||||||||||
Summary of pledged financial instruments | ' | |||||||||||||||||||||
We had pledged trading securities, AFS securities, and 1-4 family residential real estate loans in the following amounts at: | ||||||||||||||||||||||
June 30 | December 31 | |||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Pledged to secure borrowed funds | $ | 295,175 | $ | 320,173 | ||||||||||||||||||
Pledged to secure repurchase agreements | 144,683 | 148,930 | ||||||||||||||||||||
Pledged for public deposits and for other purposes necessary or required by law | 18,446 | 20,922 | ||||||||||||||||||||
Total | $ | 458,304 | $ | 490,025 | ||||||||||||||||||
Other_Noninterest_Expenses_Tab
Other Noninterest Expenses (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Summary of expenses included in other noninterest expenses | ' | |||||||||||||||
A summary of expenses included in other noninterest expenses is as follows for the: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Marketing and community relations | $ | 211 | $ | 432 | $ | 454 | $ | 674 | ||||||||
FDIC insurance premiums | 221 | 273 | 423 | 545 | ||||||||||||
Directors fees | 183 | 205 | 378 | 404 | ||||||||||||
Audit and related fees | 182 | 162 | 320 | 301 | ||||||||||||
Education and travel | 143 | 116 | 264 | 238 | ||||||||||||
Postage and freight | 90 | 94 | 198 | 193 | ||||||||||||
Printing and supplies | 87 | 99 | 189 | 185 | ||||||||||||
Loan underwriting fees | 92 | 123 | 187 | 239 | ||||||||||||
Consulting fees | 76 | 83 | 167 | 155 | ||||||||||||
All other | 735 | 668 | 1,430 | 1,213 | ||||||||||||
Total other | $ | 2,020 | $ | 2,255 | $ | 4,010 | $ | 4,147 | ||||||||
Federal_Income_Taxes_Tables
Federal Income Taxes (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Summary of federal income tax expense | ' | |||||||||||||||
The reconciliation of the provision for federal income taxes and the amount computed at the federal statutory tax rate of 34% of income before federal income tax expense is as follows for the: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income taxes at 34% statutory rate | $ | 1,448 | $ | 1,311 | $ | 2,763 | $ | 2,556 | ||||||||
Effect of nontaxable income | ||||||||||||||||
Interest income on tax exempt municipal securities | (503 | ) | (424 | ) | (997 | ) | (845 | ) | ||||||||
Earnings on corporate owned life insurance policies | (64 | ) | (65 | ) | (127 | ) | (122 | ) | ||||||||
Effect of tax credits | (191 | ) | (196 | ) | (388 | ) | (397 | ) | ||||||||
Other | (43 | ) | (26 | ) | (77 | ) | (52 | ) | ||||||||
Total effect of nontaxable income | (801 | ) | (711 | ) | (1,589 | ) | (1,416 | ) | ||||||||
Effect of nondeductible expenses | 45 | 43 | 78 | 79 | ||||||||||||
Federal income tax expense | $ | 692 | $ | 643 | $ | 1,252 | $ | 1,219 | ||||||||
Defined_Benefit_Pension_Plan_T
Defined Benefit Pension Plan (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Schedule of contributions | ' | |||||||||||||||
We contributed the following to the plan during the three and six month periods ended: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Plan Contributions | $ | — | $ | — | $ | — | $ | 215 | ||||||||
Components of net periodic benefit cost | ' | |||||||||||||||
Following are the components of net periodic benefit cost for the: | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Interest cost on benefit obligation | $ | 121 | $ | 112 | $ | 243 | $ | 225 | ||||||||
Expected return on plan assets | (154 | ) | (144 | ) | (308 | ) | (287 | ) | ||||||||
Amortization of unrecognized actuarial net loss | 43 | 82 | 85 | 165 | ||||||||||||
Net periodic benefit cost | $ | 10 | $ | 50 | $ | 20 | $ | 103 | ||||||||
Fair_Value_Tables
Fair Value (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||
Quantitative information about assets measured utilizing Level 3 fair value measurement | ' | |||||||||||||||||||||||||||||||
The table below lists the quantitative fair value information related to foreclosed assets as of: | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Valuation Techniques | Fair Value | Unobservable Input | Range | |||||||||||||||||||||||||||||
Discount applied to collateral appraisal: | ||||||||||||||||||||||||||||||||
Discounted appraisal value | $ | 1,132 | Real Estate | 20% - 30% | ||||||||||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||
Valuation Techniques | Fair Value | Unobservable Input | Range | |||||||||||||||||||||||||||||
Discount applied to collateral appraisal: | ||||||||||||||||||||||||||||||||
Discounted appraisal value | $ | 1,412 | Real Estate | 20% - 30% | ||||||||||||||||||||||||||||
The following tables list the quantitative fair value information about impaired loans as of: | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Valuation Techniques | Fair Value | Unobservable Input | Range | |||||||||||||||||||||||||||||
Discount applied to collateral appraisal: | ||||||||||||||||||||||||||||||||
Real Estate | 20% - 30% | |||||||||||||||||||||||||||||||
Equipment | 30% - 40% | |||||||||||||||||||||||||||||||
Discounted appraisal value | $13,352 | Cash crop inventory | 40% | |||||||||||||||||||||||||||||
Other inventory | 50% | |||||||||||||||||||||||||||||||
Accounts receivable | 50% - 75% | |||||||||||||||||||||||||||||||
Liquor license | 75% | |||||||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Valuation Techniques | Fair Value | Unobservable Input | Range | |||||||||||||||||||||||||||||
Discount applied to collateral appraisal: | ||||||||||||||||||||||||||||||||
Real Estate | 20% - 30% | |||||||||||||||||||||||||||||||
Equipment | 50% | |||||||||||||||||||||||||||||||
Discounted appraisal value | $13,902 | Livestock | 50% | |||||||||||||||||||||||||||||
Cash crop inventory | 50% | |||||||||||||||||||||||||||||||
Other inventory | 75% | |||||||||||||||||||||||||||||||
Accounts receivable | 75% | |||||||||||||||||||||||||||||||
Carrying amount and estimated fair value of financial instruments not recorded at fair value | ' | |||||||||||||||||||||||||||||||
The carrying amount and estimated fair value of financial instruments not recorded at fair value in their entirety on a recurring basis on our consolidated balance sheets are as follows as of: | ||||||||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||||||||
Carrying | Estimated | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||
Value | Fair Value | |||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 27,380 | $ | 27,380 | $ | 27,380 | $ | — | $ | — | ||||||||||||||||||||||
Certificates of deposit held in other financial institutions | 580 | 580 | — | 580 | — | |||||||||||||||||||||||||||
Mortgage loans AFS | 340 | 357 | — | 357 | — | |||||||||||||||||||||||||||
Total loans | 816,307 | 802,848 | — | — | 802,848 | |||||||||||||||||||||||||||
Less allowance for loan and lease losses | 10,700 | 10,700 | — | — | 10,700 | |||||||||||||||||||||||||||
Net loans | 805,607 | 792,148 | — | — | 792,148 | |||||||||||||||||||||||||||
Accrued interest receivable | 5,448 | 5,448 | 5,448 | — | — | |||||||||||||||||||||||||||
Equity securities without readily determinable fair values (1) | 19,303 | 19,303 | — | — | — | |||||||||||||||||||||||||||
OMSRs | 2,618 | 2,703 | — | 2,703 | — | |||||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||
Deposits without stated maturities | 609,280 | 609,280 | 609,280 | — | — | |||||||||||||||||||||||||||
Deposits with stated maturities | 451,648 | 453,458 | — | 453,458 | — | |||||||||||||||||||||||||||
Borrowed funds | 279,457 | 263,604 | — | 263,604 | — | |||||||||||||||||||||||||||
Accrued interest payable | 527 | 527 | 527 | — | — | |||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||||||
Carrying | Estimated | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||
Value | Fair Value | |||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 41,558 | $ | 41,558 | $ | 41,558 | $ | — | $ | — | ||||||||||||||||||||||
Certificates of deposit held in other financial institutions | 580 | 582 | — | 582 | — | |||||||||||||||||||||||||||
Mortgage loans AFS | 1,104 | 1,123 | — | 1,123 | — | |||||||||||||||||||||||||||
Total loans | 808,037 | 808,246 | — | — | 808,246 | |||||||||||||||||||||||||||
Less allowance for loan and lease losses | 11,500 | 11,500 | — | — | 11,500 | |||||||||||||||||||||||||||
Net loans | 796,537 | 796,746 | — | — | 796,746 | |||||||||||||||||||||||||||
Accrued interest receivable | 5,442 | 5,442 | 5,442 | — | — | |||||||||||||||||||||||||||
Equity securities without readily determinable fair values (1) | 18,293 | 18,293 | — | — | — | |||||||||||||||||||||||||||
OMSRs | 2,555 | 2,667 | — | 2,667 | — | |||||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||
Deposits without stated maturities | 593,754 | 593,754 | 593,754 | — | — | |||||||||||||||||||||||||||
Deposits with stated maturities | 450,012 | 452,803 | — | 452,803 | — | |||||||||||||||||||||||||||
Borrowed funds | 279,326 | 283,060 | — | 283,060 | — | |||||||||||||||||||||||||||
Accrued interest payable | 633 | 633 | 633 | — | — | |||||||||||||||||||||||||||
(1) | Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. If we were to record an impairment adjustment related to these securities, such amount would be classified as a nonrecurring Level 3 fair value adjustment. | |||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value | ' | |||||||||||||||||||||||||||||||
The table below presents the recorded amount of assets and liabilities measured at fair value on: | ||||||||||||||||||||||||||||||||
June 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Recurring items | ||||||||||||||||||||||||||||||||
Trading securities | ||||||||||||||||||||||||||||||||
States and political subdivisions | $ | — | $ | — | $ | — | $ | — | $ | 525 | $ | — | $ | 525 | $ | — | ||||||||||||||||
AFS securities | ||||||||||||||||||||||||||||||||
Government-sponsored enterprises | 24,104 | — | 24,104 | — | 23,745 | — | 23,745 | — | ||||||||||||||||||||||||
States and political subdivisions | 214,210 | — | 214,210 | — | 201,988 | — | 201,988 | — | ||||||||||||||||||||||||
Auction rate money market preferred | 2,867 | — | 2,867 | — | 2,577 | — | 2,577 | — | ||||||||||||||||||||||||
Preferred stocks | 6,214 | 6,214 | — | — | 5,827 | 5,827 | — | — | ||||||||||||||||||||||||
Mortgage-backed securities | 162,992 | — | 162,992 | — | 144,115 | — | 144,115 | — | ||||||||||||||||||||||||
Collateralized mortgage obligations | 140,131 | — | 140,131 | — | 133,810 | — | 133,810 | — | ||||||||||||||||||||||||
Total AFS securities | 550,518 | 6,214 | 544,304 | — | 512,062 | 5,827 | 506,235 | — | ||||||||||||||||||||||||
Nonrecurring items | ||||||||||||||||||||||||||||||||
Impaired loans (net of the ALLL) | 13,352 | — | — | 13,352 | 13,902 | — | — | 13,902 | ||||||||||||||||||||||||
Foreclosed assets | 1,132 | — | — | 1,132 | 1,412 | — | — | 1,412 | ||||||||||||||||||||||||
Total | $ | 565,002 | $ | 6,214 | $ | 544,304 | $ | 14,484 | $ | 527,901 | $ | 5,827 | $ | 506,760 | $ | 15,314 | ||||||||||||||||
Percent of assets and liabilities measured at fair value | 1.1 | % | 96.34 | % | 2.56 | % | 1.1 | % | 96 | % | 2.9 | % | ||||||||||||||||||||
The following table provides a summary of the changes in fair value of assets and liabilities recorded at fair value through earnings on a recurring basis and changes in assets and liabilities recorded at fair value on a nonrecurring basis, for which gains or losses were recognized in the: | ||||||||||||||||||||||||||||||||
Three Months Ended June 30 | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Trading | Other Gains | Total | Trading | Other Gains | Total | |||||||||||||||||||||||||||
Losses | (Losses) | Losses | (Losses) | |||||||||||||||||||||||||||||
Recurring items | ||||||||||||||||||||||||||||||||
Trading securities | $ | (1 | ) | $ | — | $ | (1 | ) | $ | (8 | ) | $ | — | $ | (8 | ) | ||||||||||||||||
Nonrecurring items | ||||||||||||||||||||||||||||||||
Foreclosed assets | — | (20 | ) | (20 | ) | — | (68 | ) | (68 | ) | ||||||||||||||||||||||
Total | $ | (1 | ) | $ | (20 | ) | $ | (21 | ) | $ | (8 | ) | $ | (68 | ) | $ | (76 | ) | ||||||||||||||
Six Months Ended June 30 | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Trading | Other Gains | Total | Trading | Other Gains | Total | |||||||||||||||||||||||||||
Losses | (Losses) | Losses | (Losses) | |||||||||||||||||||||||||||||
Recurring items | ||||||||||||||||||||||||||||||||
Trading securities | $ | (5 | ) | $ | — | $ | (5 | ) | $ | (18 | ) | $ | — | $ | (18 | ) | ||||||||||||||||
Nonrecurring items | ||||||||||||||||||||||||||||||||
Foreclosed assets | — | (63 | ) | (63 | ) | — | (92 | ) | (92 | ) | ||||||||||||||||||||||
Total | $ | (5 | ) | $ | (63 | ) | $ | (68 | ) | $ | (18 | ) | $ | (92 | ) | $ | (110 | ) |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||
Summary of the components of accumulated other comprehensive income | ' | |||||||||||||||||||||||
A summary of the components of unrealized holding gains on AFS securities included in OCI follows for the: | ||||||||||||||||||||||||
Three Months Ended June 30 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Auction Rate Money Market Preferred and Preferred Stocks | All Other AFS Securities | Total | Auction Rate Money Market Preferred and Preferred Stocks | All Other AFS Securities | Total | |||||||||||||||||||
Unrealized gains (losses) arising during the period | $ | 298 | $ | 4,150 | $ | 4,448 | $ | (363 | ) | $ | (11,634 | ) | $ | (11,997 | ) | |||||||||
Reclassification adjustment for net realized (gains) losses included in net income | — | — | — | — | — | — | ||||||||||||||||||
Net unrealized gains (losses) | 298 | 4,150 | 4,448 | (363 | ) | (11,634 | ) | (11,997 | ) | |||||||||||||||
Tax effect | — | (1,420 | ) | (1,420 | ) | — | 3,979 | 3,979 | ||||||||||||||||
Unrealized gains (losses), net of tax | $ | 298 | $ | 2,730 | $ | 3,028 | $ | (363 | ) | $ | (7,655 | ) | $ | (8,018 | ) | |||||||||
Six Months Ended June 30 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Auction Rate Money Market Preferred and Preferred Stocks | All Other AFS Securities | Total | Auction Rate Money Market Preferred and Preferred Stocks | All Other AFS Securities | Total | |||||||||||||||||||
Unrealized gains (losses) arising during the period | $ | 298 | $ | 9,670 | $ | 9,968 | $ | 295 | $ | (14,253 | ) | $ | (13,958 | ) | ||||||||||
Reclassification adjustment for net realized (gains) losses included in net income | — | — | — | — | (99 | ) | (99 | ) | ||||||||||||||||
Net unrealized gains (losses) | 298 | 9,670 | 9,968 | 295 | (14,352 | ) | (14,057 | ) | ||||||||||||||||
Tax effect | — | (3,159 | ) | (3,159 | ) | — | 4,902 | 4,902 | ||||||||||||||||
Unrealized gains (losses), net of tax | $ | 298 | $ | 6,511 | $ | 6,809 | $ | 295 | $ | (9,450 | ) | $ | (9,155 | ) | ||||||||||
The following table summarizes the changes in AOCI by component for the: | ||||||||||||||||||||||||
Three Months Ended June 30 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Unrealized | Defined | Total | Unrealized | Defined | Total | |||||||||||||||||||
Holding Gains | Benefit | Holding Gains | Benefit | |||||||||||||||||||||
(Losses) on | Pension Plan | (Losses) on | Pension Plan | |||||||||||||||||||||
AFS | AFS | |||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||
Balance, April 1 | $ | (426 | ) | $ | (2,134 | ) | $ | (2,560 | ) | $ | 7,541 | $ | (3,671 | ) | $ | 3,870 | ||||||||
OCI before reclassifications | 4,448 | — | 4,448 | (11,997 | ) | — | (11,997 | ) | ||||||||||||||||
Amounts reclassified from AOCI | — | — | — | — | — | — | ||||||||||||||||||
Subtotal | 4,448 | — | 4,448 | (11,997 | ) | — | (11,997 | ) | ||||||||||||||||
Tax effect | (1,420 | ) | — | (1,420 | ) | 3,979 | — | 3,979 | ||||||||||||||||
OCI, net of tax | 3,028 | — | 3,028 | (8,018 | ) | — | (8,018 | ) | ||||||||||||||||
Balance, June 30 | $ | 2,602 | $ | (2,134 | ) | $ | 468 | $ | (477 | ) | $ | (3,671 | ) | $ | (4,148 | ) | ||||||||
Six Months Ended June 30 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Unrealized | Defined | Total | Unrealized | Defined | Total | |||||||||||||||||||
Holding Gains | Benefit | Holding Gains | Benefit | |||||||||||||||||||||
(Losses) on | Pension Plan | (Losses) on | Pension Plan | |||||||||||||||||||||
AFS | AFS | |||||||||||||||||||||||
Securities | Securities | |||||||||||||||||||||||
Balance, January 1 | $ | (4,207 | ) | $ | (2,134 | ) | $ | (6,341 | ) | $ | 8,678 | $ | (3,671 | ) | $ | 5,007 | ||||||||
OCI before reclassifications | 9,968 | — | 9,968 | (13,958 | ) | — | (13,958 | ) | ||||||||||||||||
Amounts reclassified from AOCI | — | — | — | (99 | ) | — | (99 | ) | ||||||||||||||||
Subtotal | 9,968 | — | 9,968 | (14,057 | ) | — | (14,057 | ) | ||||||||||||||||
Tax effect | (3,159 | ) | — | (3,159 | ) | 4,902 | — | 4,902 | ||||||||||||||||
OCI, net of tax | 6,809 | — | 6,809 | (9,155 | ) | — | (9,155 | ) | ||||||||||||||||
Balance, June 30 | $ | 2,602 | $ | (2,134 | ) | $ | 468 | $ | (477 | ) | $ | (3,671 | ) | $ | (4,148 | ) | ||||||||
Details about accumulated other comprehensive income components | ' | |||||||||||||||||||||||
The following table details reclassification adjustments and the related affected line items on our interim condensed consolidated statements of income for the noted periods: | ||||||||||||||||||||||||
Details about AOCI components | Amount | Affected Line Item in the | ||||||||||||||||||||||
Reclassified from | Interim Condensed Consolidated | |||||||||||||||||||||||
AOCI | Statements of Income | |||||||||||||||||||||||
Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Unrealized holding gains (losses) on AFS securities | ||||||||||||||||||||||||
$ | — | $ | — | $ | — | $ | 99 | Net gains (losses) on sale of AFS securities | ||||||||||||||||
— | — | — | 99 | Income before federal income tax expense | ||||||||||||||||||||
— | — | — | 34 | Federal income tax expense | ||||||||||||||||||||
$ | — | $ | — | $ | — | $ | 65 | Net income | ||||||||||||||||
Parent_Company_Only_Financial_1
Parent Company Only Financial Information (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||
Interim Condensed Balance Sheets | ' | |||||||||||||||
Interim Condensed Balance Sheets | ||||||||||||||||
June 30 | December 31 | |||||||||||||||
2014 | 2013 | |||||||||||||||
ASSETS | ||||||||||||||||
Cash on deposit at the Bank | $ | 961 | $ | 529 | ||||||||||||
AFS securities | 3,522 | 3,542 | ||||||||||||||
Investments in subsidiaries | 121,714 | 110,192 | ||||||||||||||
Premises and equipment | 1,954 | 2,013 | ||||||||||||||
Other assets | 54,274 | 54,223 | ||||||||||||||
TOTAL ASSETS | $ | 182,425 | $ | 170,499 | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Other liabilities | $ | 11,326 | $ | 9,890 | ||||||||||||
Shareholders' equity | 171,099 | 160,609 | ||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 182,425 | $ | 170,499 | ||||||||||||
Interim Condensed Statements of Income | ' | |||||||||||||||
Interim Condensed Statements of Income | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income | ||||||||||||||||
Dividends from subsidiaries | $ | 1,500 | $ | 1,500 | $ | 3,000 | $ | 3,000 | ||||||||
Interest income | 39 | 41 | 78 | 84 | ||||||||||||
Management fee and other | 722 | 559 | 1,228 | 1,067 | ||||||||||||
Total income | 2,261 | 2,100 | 4,306 | 4,151 | ||||||||||||
Expenses | ||||||||||||||||
Compensation and benefits | 772 | 669 | 1,604 | 1,381 | ||||||||||||
Occupancy and equipment | 107 | 119 | 221 | 230 | ||||||||||||
Audit and related fees | 98 | 93 | 169 | 158 | ||||||||||||
Other | 298 | 297 | 566 | 501 | ||||||||||||
Total expenses | 1,275 | 1,178 | 2,560 | 2,270 | ||||||||||||
Income before income tax benefit and equity in undistributed earnings of subsidiaries | 986 | 922 | 1,746 | 1,881 | ||||||||||||
Federal income tax benefit | 178 | 199 | 432 | 388 | ||||||||||||
Income before equity in undistributed earnings of subsidiaries | 1,164 | 1,121 | 2,178 | 2,269 | ||||||||||||
Undistributed earnings of subsidiaries | 2,401 | 2,092 | 4,696 | 4,031 | ||||||||||||
Net income | $ | 3,565 | $ | 3,213 | $ | 6,874 | $ | 6,300 | ||||||||
Interim Condensed Statements of Cash Flows | ' | |||||||||||||||
Interim Condensed Statements of Cash Flows | ||||||||||||||||
Six Months Ended | ||||||||||||||||
June 30 | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Operating activities | ||||||||||||||||
Net income | $ | 6,874 | $ | 6,300 | ||||||||||||
Adjustments to reconcile net income to cash provided by operations | ||||||||||||||||
Undistributed earnings of subsidiaries | (4,696 | ) | (4,031 | ) | ||||||||||||
Undistributed earnings of equity securities without readily determinable fair values | (10 | ) | 125 | |||||||||||||
Share-based payment awards | 237 | 258 | ||||||||||||||
Depreciation | 65 | 77 | ||||||||||||||
Net amortization of AFS securities | 2 | 1 | ||||||||||||||
Changes in operating assets and liabilities which provided (used) cash | ||||||||||||||||
Other assets | (40 | ) | (26 | ) | ||||||||||||
Accrued interest and other liabilities | 836 | 211 | ||||||||||||||
Net cash provided by (used in) operating activities | 3,268 | 2,915 | ||||||||||||||
Investing activities | ||||||||||||||||
Maturities, calls, and sales of AFS securities | — | 395 | ||||||||||||||
Purchases of premises and equipment | (6 | ) | (127 | ) | ||||||||||||
Advances to subsidiaries, net of repayments | — | 101 | ||||||||||||||
Net cash provided by (used in) investing activities | (6 | ) | 369 | |||||||||||||
Financing activities | ||||||||||||||||
Net increase (decrease) in borrowed funds | 600 | (200 | ) | |||||||||||||
Cash dividends paid on common stock | (3,394 | ) | (3,224 | ) | ||||||||||||
Proceeds from the issuance of common stock | 1,778 | 1,900 | ||||||||||||||
Common stock repurchased | (1,648 | ) | (1,114 | ) | ||||||||||||
Common stock purchased for deferred compensation obligations | (166 | ) | (166 | ) | ||||||||||||
Net cash provided by (used in) financing activities | (2,830 | ) | (2,804 | ) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 432 | 480 | ||||||||||||||
Cash and cash equivalents at beginning of period | 529 | 332 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 961 | $ | 812 | ||||||||||||
Computation_of_Earnings_Per_Co2
Computation of Earnings Per Common Share (Schedule of Earnings Per Share) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | ||||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ||||
Average number of common shares outstanding for basic calculation | 7,722,367 | 7,701,042 | 7,721,814 | 7,689,092 | ||||
Average potential effect of common shares in the Directors Plan | 168,715 | [1] | 168,323 | [1] | 170,984 | [1] | 166,800 | [1] |
Average number of common shares outstanding used to calculate diluted earnings per common share | 7,891,082 | 7,869,365 | 7,892,798 | 7,855,892 | ||||
Net income | $3,565 | $3,213 | $6,874 | $6,300 | ||||
Basic (in dollars per share) | $0.46 | $0.42 | $0.89 | $0.82 | ||||
Diluted (in dollars per share) | $0.45 | $0.41 | $0.87 | $0.80 | ||||
[1] | Exclusive of shares held in the Rabbi Trust |
AFS_Securities_Amortized_cost_
AFS Securities (Amortized cost and fair value of AFS securities, with gross unrealized gains and losses) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $546,102 | $517,614 |
Gross Unrealized Gains | 10,357 | 6,912 |
Gross Unrealized Losses | 5,941 | 12,464 |
AFS securities | 550,518 | 512,062 |
Government sponsored enterprises [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 24,706 | 24,860 |
Gross Unrealized Gains | 5 | 7 |
Gross Unrealized Losses | 607 | 1,122 |
AFS securities | 24,104 | 23,745 |
States and political subdivisions [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 208,564 | 200,323 |
Gross Unrealized Gains | 6,962 | 5,212 |
Gross Unrealized Losses | 1,316 | 3,547 |
AFS securities | 214,210 | 201,988 |
Auction rate money market preferred [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 3,200 | 3,200 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 333 | 623 |
AFS securities | 2,867 | 2,577 |
Preferred stocks [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 6,800 | 6,800 |
Gross Unrealized Gains | 6 | 20 |
Gross Unrealized Losses | 592 | 993 |
AFS securities | 6,214 | 5,827 |
Mortgage-backed securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 162,949 | 147,292 |
Gross Unrealized Gains | 1,732 | 657 |
Gross Unrealized Losses | 1,689 | 3,834 |
AFS securities | 162,992 | 144,115 |
Collateralized mortgage obligations [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 139,883 | 135,139 |
Gross Unrealized Gains | 1,652 | 1,016 |
Gross Unrealized Losses | 1,404 | 2,345 |
AFS securities | $140,131 | $133,810 |
AFS_Securities_Amortized_cost_1
AFS Securities (Amortized cost and fair value of AFS securities by contractual maturity) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ' | ' |
Maturing, Due in One Year or Less | $10,714 | ' |
Maturing, After One Year But Within Five Years | 58,254 | ' |
Maturing, After Five Years But Within Ten Years | 115,429 | ' |
Maturing, After Ten Years | 48,873 | ' |
Securities With Variable Monthly Payments or Noncontractual Maturities | 312,832 | ' |
Amortized Cost | 546,102 | 517,614 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ' | ' |
Maturing, Due in One Year or Less, Fair value | 10,812 | ' |
Maturing, After One Year But Within Five Years, Fair value | 60,195 | ' |
Maturing, After Five Years But Within Ten Years, Fair value | 118,057 | ' |
Maturing, After Ten Years, Fair value | 49,250 | ' |
Securities With Variable Monthly Payments or Noncontractual Maturities, Fair value | 312,204 | ' |
Total, Fair value | 550,518 | 512,062 |
Government sponsored enterprises [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ' | ' |
Maturing, Due in One Year or Less | 0 | ' |
Maturing, After One Year But Within Five Years | 9,068 | ' |
Maturing, After Five Years But Within Ten Years | 15,638 | ' |
Maturing, After Ten Years | 0 | ' |
Securities With Variable Monthly Payments or Noncontractual Maturities | 0 | ' |
Amortized Cost | 24,706 | 24,860 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ' | ' |
Total, Fair value | 24,104 | 23,745 |
States and political subdivisions [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ' | ' |
Maturing, Due in One Year or Less | 10,714 | ' |
Maturing, After One Year But Within Five Years | 49,186 | ' |
Maturing, After Five Years But Within Ten Years | 99,791 | ' |
Maturing, After Ten Years | 48,873 | ' |
Securities With Variable Monthly Payments or Noncontractual Maturities | 0 | ' |
Amortized Cost | 208,564 | 200,323 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ' | ' |
Total, Fair value | 214,210 | 201,988 |
Auction rate money market preferred [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ' | ' |
Maturing, Due in One Year or Less | 0 | ' |
Maturing, After One Year But Within Five Years | 0 | ' |
Maturing, After Five Years But Within Ten Years | 0 | ' |
Maturing, After Ten Years | 0 | ' |
Securities With Variable Monthly Payments or Noncontractual Maturities | 3,200 | ' |
Amortized Cost | 3,200 | 3,200 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ' | ' |
Total, Fair value | 2,867 | 2,577 |
Preferred stocks [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ' | ' |
Securities With Variable Monthly Payments or Noncontractual Maturities | 6,800 | ' |
Amortized Cost | 6,800 | 6,800 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ' | ' |
Total, Fair value | 6,214 | 5,827 |
Mortgage-backed securities [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ' | ' |
Maturing, Due in One Year or Less | 0 | ' |
Maturing, After One Year But Within Five Years | 0 | ' |
Maturing, After Five Years But Within Ten Years | 0 | ' |
Maturing, After Ten Years | 0 | ' |
Securities With Variable Monthly Payments or Noncontractual Maturities | 162,949 | ' |
Amortized Cost | 162,949 | 147,292 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ' | ' |
Total, Fair value | 162,992 | 144,115 |
Collateralized mortgage obligations [Member] | ' | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ' | ' |
Maturing, Due in One Year or Less | 0 | ' |
Maturing, After One Year But Within Five Years | 0 | ' |
Maturing, After Five Years But Within Ten Years | 0 | ' |
Maturing, After Ten Years | 0 | ' |
Securities With Variable Monthly Payments or Noncontractual Maturities | 139,883 | ' |
Amortized Cost | 139,883 | 135,139 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ' | ' |
Total, Fair value | $140,131 | $133,810 |
AFS_Securities_Activity_relate
AFS Securities (Activity related to sales of AFS securities) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Investments, Debt and Equity Securities [Abstract] | ' | ' | ' | ' |
Proceeds from sales of AFS of securities | $0 | $0 | $0 | $9,857 |
Gross realized gains (losses) | 0 | 0 | 0 | 99 |
Applicable income tax expense | $0 | $0 | $0 | $34 |
AFS_Securities_AFS_securities_
AFS Securities (AFS securities with gross unrealized losses) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Securities | Securities |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Losses, Less Than Twelve Months | $358 | $8,457 |
Fair Value, Less Than Twelve Months | 48,197 | 251,760 |
Gross Unrealized Losses, Twelve Months or More | 5,583 | 4,007 |
Fair Value, Twelve Months or More | 164,480 | 33,161 |
Total Unrealized Losses | 5,941 | 12,464 |
Number of Securities in an unrealized loss position, Less Than Twelve Months, Fair Value | 123 | 182 |
Number of Securities in an unrealized loss position, Twelve Months or More, Fair Value | 116 | 19 |
Number of Securities in an unrealized loss position, Total Unrealized Losses | 239 | 201 |
Government sponsored enterprises [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Losses, Less Than Twelve Months | 0 | 1,122 |
Fair Value, Less Than Twelve Months | 0 | 22,873 |
Gross Unrealized Losses, Twelve Months or More | 607 | 0 |
Fair Value, Twelve Months or More | 23,389 | 0 |
Total Unrealized Losses | 607 | 1,122 |
States and political subdivisions [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Losses, Less Than Twelve Months | 259 | 2,566 |
Fair Value, Less Than Twelve Months | 15,190 | 42,593 |
Gross Unrealized Losses, Twelve Months or More | 1,057 | 981 |
Fair Value, Twelve Months or More | 27,852 | 6,115 |
Total Unrealized Losses | 1,316 | 3,547 |
Auction rate money market preferred [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Losses, Less Than Twelve Months | 0 | 0 |
Fair Value, Less Than Twelve Months | 0 | 0 |
Gross Unrealized Losses, Twelve Months or More | 333 | 623 |
Fair Value, Twelve Months or More | 2,167 | 2,577 |
Total Unrealized Losses | 333 | 623 |
Preferred stocks [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Losses, Less Than Twelve Months | 0 | 0 |
Fair Value, Less Than Twelve Months | 0 | 0 |
Gross Unrealized Losses, Twelve Months or More | 592 | 993 |
Fair Value, Twelve Months or More | 3,208 | 2,807 |
Total Unrealized Losses | 592 | 993 |
Mortgage-backed securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Losses, Less Than Twelve Months | 17 | 2,424 |
Fair Value, Less Than Twelve Months | 9,268 | 101,816 |
Gross Unrealized Losses, Twelve Months or More | 1,672 | 1,410 |
Fair Value, Twelve Months or More | 65,346 | 21,662 |
Total Unrealized Losses | 1,689 | 3,834 |
Collateralized mortgage obligations [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Gross Unrealized Losses, Less Than Twelve Months | 82 | 2,345 |
Fair Value, Less Than Twelve Months | 23,739 | 84,478 |
Gross Unrealized Losses, Twelve Months or More | 1,322 | 0 |
Fair Value, Twelve Months or More | 42,518 | 0 |
Total Unrealized Losses | $1,404 | $2,345 |
Loans_and_ALLL_Summary_of_chan
Loans and ALLL (Summary of changes in ALLL by segments) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Summary of changes in the ALLL and the recorded investment in loans by segments | ' | ' | ' | ' |
Allowance for loan losses, Beginning Balance | $11,100 | $11,909 | $11,500 | $11,936 |
Allowance for loan losses, Loans charged off | -411 | -719 | -861 | -1,241 |
Allowance for loan losses, Recoveries | 211 | 295 | 503 | 490 |
Allowance for loan losses, Provision for loan losses | -200 | 215 | -442 | 515 |
Allowance for loan losses, Ending Balance | 10,700 | 11,700 | 10,700 | 11,700 |
Commercial [Member] | ' | ' | ' | ' |
Summary of changes in the ALLL and the recorded investment in loans by segments | ' | ' | ' | ' |
Allowance for loan losses, Beginning Balance | 4,814 | 6,897 | 6,048 | 6,862 |
Allowance for loan losses, Loans charged off | -79 | -234 | -271 | -445 |
Allowance for loan losses, Recoveries | 92 | 166 | 306 | 223 |
Allowance for loan losses, Provision for loan losses | 185 | -357 | -1,071 | -168 |
Allowance for loan losses, Ending Balance | 5,012 | 6,472 | 5,012 | 6,472 |
Agricultural [Member] | ' | ' | ' | ' |
Summary of changes in the ALLL and the recorded investment in loans by segments | ' | ' | ' | ' |
Allowance for loan losses, Beginning Balance | 425 | 321 | 434 | 407 |
Allowance for loan losses, Loans charged off | 0 | 0 | -31 | 0 |
Allowance for loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for loan losses, Provision for loan losses | -206 | 14 | -184 | -72 |
Allowance for loan losses, Ending Balance | 219 | 335 | 219 | 335 |
Residential Real Estate [Member] | ' | ' | ' | ' |
Summary of changes in the ALLL and the recorded investment in loans by segments | ' | ' | ' | ' |
Allowance for loan losses, Beginning Balance | 4,727 | 3,634 | 3,845 | 3,627 |
Allowance for loan losses, Loans charged off | -264 | -397 | -377 | -587 |
Allowance for loan losses, Recoveries | 86 | 61 | 122 | 114 |
Allowance for loan losses, Provision for loan losses | -568 | 378 | 391 | 522 |
Allowance for loan losses, Ending Balance | 3,981 | 3,676 | 3,981 | 3,676 |
Consumer [Member] | ' | ' | ' | ' |
Summary of changes in the ALLL and the recorded investment in loans by segments | ' | ' | ' | ' |
Allowance for loan losses, Beginning Balance | 630 | 732 | 639 | 666 |
Allowance for loan losses, Loans charged off | -68 | -88 | -182 | -209 |
Allowance for loan losses, Recoveries | 33 | 68 | 75 | 153 |
Allowance for loan losses, Provision for loan losses | 207 | -65 | 270 | 37 |
Allowance for loan losses, Ending Balance | 802 | 647 | 802 | 647 |
Unallocated [Member] | ' | ' | ' | ' |
Summary of changes in the ALLL and the recorded investment in loans by segments | ' | ' | ' | ' |
Allowance for loan losses, Beginning Balance | 504 | 325 | 534 | 374 |
Allowance for loan losses, Loans charged off | 0 | 0 | 0 | 0 |
Allowance for loan losses, Recoveries | 0 | 0 | 0 | 0 |
Allowance for loan losses, Provision for loan losses | 182 | 245 | 152 | 196 |
Allowance for loan losses, Ending Balance | $686 | $570 | $686 | $570 |
Loans_and_ALLL_Summary_of_reco
Loans and ALLL (Summary of recorded investment in loans by segments) (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment, ALLL | $3,940 | ' | $4,352 | ' | ' | ' |
Collectively evaluated for impairment, ALLL | 6,760 | ' | 7,148 | ' | ' | ' |
Total, ALLL | 10,700 | 11,100 | 11,500 | 11,700 | 11,909 | 11,936 |
Individually evaluated for impairment, Loans | 27,727 | ' | 29,775 | ' | ' | ' |
Collectively evaluated for impairment, Loans | 788,580 | ' | 778,262 | ' | ' | ' |
Total | 816,307 | ' | 808,037 | ' | ' | ' |
Commercial [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment, ALLL | 1,633 | ' | 2,035 | ' | ' | ' |
Collectively evaluated for impairment, ALLL | 3,379 | ' | 4,013 | ' | ' | ' |
Total, ALLL | 5,012 | 4,814 | 6,048 | 6,472 | 6,897 | 6,862 |
Individually evaluated for impairment, Loans | 13,164 | ' | 13,816 | ' | ' | ' |
Collectively evaluated for impairment, Loans | 394,627 | ' | 378,288 | ' | ' | ' |
Total | 407,791 | ' | 392,104 | ' | ' | ' |
Agricultural [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment, ALLL | 36 | ' | 30 | ' | ' | ' |
Collectively evaluated for impairment, ALLL | 183 | ' | 404 | ' | ' | ' |
Total, ALLL | 219 | 425 | 434 | 335 | 321 | 407 |
Individually evaluated for impairment, Loans | 1,583 | ' | 1,538 | ' | ' | ' |
Collectively evaluated for impairment, Loans | 96,078 | ' | 91,051 | ' | ' | ' |
Total | 97,661 | ' | 92,589 | ' | ' | ' |
Residential Real Estate [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment, ALLL | 2,270 | ' | 2,287 | ' | ' | ' |
Collectively evaluated for impairment, ALLL | 1,711 | ' | 1,558 | ' | ' | ' |
Total, ALLL | 3,981 | 4,727 | 3,845 | 3,676 | 3,634 | 3,627 |
Individually evaluated for impairment, Loans | 12,906 | ' | 14,302 | ' | ' | ' |
Collectively evaluated for impairment, Loans | 265,639 | ' | 275,629 | ' | ' | ' |
Total | 278,545 | ' | 289,931 | ' | ' | ' |
Consumer [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment, ALLL | 1 | ' | 0 | ' | ' | ' |
Collectively evaluated for impairment, ALLL | 801 | ' | 639 | ' | ' | ' |
Total, ALLL | 802 | 630 | 639 | 647 | 732 | 666 |
Individually evaluated for impairment, Loans | 74 | ' | 119 | ' | ' | ' |
Collectively evaluated for impairment, Loans | 32,236 | ' | 33,294 | ' | ' | ' |
Total | 32,310 | ' | 33,413 | ' | ' | ' |
Unallocated [Member] | ' | ' | ' | ' | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' |
Individually evaluated for impairment, ALLL | 0 | ' | 0 | ' | ' | ' |
Collectively evaluated for impairment, ALLL | 686 | ' | 534 | ' | ' | ' |
Total, ALLL | $686 | $504 | $534 | $570 | $325 | $374 |
Loans_and_ALLL_Credit_quality_
Loans and ALLL (Credit quality indicators for commercial and agricultural credit exposures) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | $816,307 | $808,037 |
Total commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 407,791 | 392,104 |
Commercial real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 299,185 | 291,860 |
Commercial other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 108,606 | 100,244 |
Total agricultural [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 97,661 | 92,589 |
Agricultural real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 64,693 | 59,257 |
Agricultural other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 32,968 | 33,332 |
2 - High quality [Member] | Total commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 31,402 | 33,132 |
2 - High quality [Member] | Commercial real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 15,038 | 18,671 |
2 - High quality [Member] | Commercial other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 16,364 | 14,461 |
2 - High quality [Member] | Total agricultural [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 9,436 | 6,762 |
2 - High quality [Member] | Agricultural real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 5,619 | 3,527 |
2 - High quality [Member] | Agricultural other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 3,817 | 3,235 |
3 - High satisfactory [Member] | Total commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 140,149 | 130,726 |
3 - High satisfactory [Member] | Commercial real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 92,014 | 91,323 |
3 - High satisfactory [Member] | Commercial other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 48,135 | 39,403 |
3 - High satisfactory [Member] | Total agricultural [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 38,683 | 43,015 |
3 - High satisfactory [Member] | Agricultural real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 25,840 | 26,015 |
3 - High satisfactory [Member] | Agricultural other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 12,843 | 17,000 |
4 - Low satisfactory [Member] | Total commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 208,716 | 193,730 |
4 - Low satisfactory [Member] | Commercial real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 166,155 | 149,921 |
4 - Low satisfactory [Member] | Commercial other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 42,561 | 43,809 |
4 - Low satisfactory [Member] | Total agricultural [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 45,265 | 37,776 |
4 - Low satisfactory [Member] | Agricultural real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 29,461 | 26,874 |
4 - Low satisfactory [Member] | Agricultural other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 15,804 | 10,902 |
5 - Special mention [Member] | Total commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 10,969 | 15,590 |
5 - Special mention [Member] | Commercial real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 9,816 | 13,747 |
5 - Special mention [Member] | Commercial other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 1,153 | 1,843 |
5 - Special mention [Member] | Total agricultural [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 2,128 | 2,531 |
5 - Special mention [Member] | Agricultural real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 1,810 | 1,609 |
5 - Special mention [Member] | Agricultural other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 318 | 922 |
6 - Substandard [Member] | Total commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 13,702 | 17,447 |
6 - Substandard [Member] | Commercial real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 13,557 | 16,974 |
6 - Substandard [Member] | Commercial other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 145 | 473 |
6 - Substandard [Member] | Total agricultural [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 2,034 | 2,505 |
6 - Substandard [Member] | Agricultural real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 1,848 | 1,232 |
6 - Substandard [Member] | Agricultural other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 186 | 1,273 |
7 - Vulnerable [Member] | Total commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 2,839 | 1,279 |
7 - Vulnerable [Member] | Commercial real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 2,605 | 1,041 |
7 - Vulnerable [Member] | Commercial other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 234 | 238 |
7 - Vulnerable [Member] | Total agricultural [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 115 | 0 |
7 - Vulnerable [Member] | Agricultural real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 115 | 0 |
7 - Vulnerable [Member] | Agricultural other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 0 | 0 |
8 - Doubtful [Member] | Total commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 14 | 200 |
8 - Doubtful [Member] | Commercial real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 0 | 183 |
8 - Doubtful [Member] | Commercial other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 14 | 17 |
8 - Doubtful [Member] | Total agricultural [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 0 | 0 |
8 - Doubtful [Member] | Agricultural real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | 0 | 0 |
8 - Doubtful [Member] | Agricultural other [Member] | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Total | $0 | $0 |
Loans_and_ALLL_Past_due_and_cu
Loans and ALLL (Past due and current loans) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | $3,833 | $5,850 |
Accruing Interest and Past Due: 60-89 Days | 1,217 | 1,652 |
Accruing Interest and Pass Due: 90 Days or More | 119 | 142 |
Nonaccrual | 4,587 | 3,244 |
Total Past Due and Nonaccrual | 9,756 | 10,888 |
Current | 806,551 | 797,149 |
Total | 816,307 | 808,037 |
Total commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | 1,114 | 1,594 |
Accruing Interest and Past Due: 60-89 Days | 345 | 311 |
Accruing Interest and Pass Due: 90 Days or More | 28 | 13 |
Nonaccrual | 2,839 | 1,374 |
Total Past Due and Nonaccrual | 4,326 | 3,292 |
Current | 403,465 | 388,812 |
Total | 407,791 | 392,104 |
Commercial real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | 857 | 1,226 |
Accruing Interest and Past Due: 60-89 Days | 332 | 296 |
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 2,605 | 1,136 |
Total Past Due and Nonaccrual | 3,794 | 2,658 |
Current | 295,391 | 289,202 |
Total | 299,185 | 291,860 |
Commercial other [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | 257 | 368 |
Accruing Interest and Past Due: 60-89 Days | 13 | 15 |
Accruing Interest and Pass Due: 90 Days or More | 28 | 13 |
Nonaccrual | 234 | 238 |
Total Past Due and Nonaccrual | 532 | 634 |
Current | 108,074 | 99,610 |
Total | 108,606 | 100,244 |
Total agricultural [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | 520 | 34 |
Accruing Interest and Past Due: 60-89 Days | 84 | 295 |
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 115 | 0 |
Total Past Due and Nonaccrual | 719 | 329 |
Current | 96,942 | 92,260 |
Total | 97,661 | 92,589 |
Agricultural real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | 208 | 34 |
Accruing Interest and Past Due: 60-89 Days | 0 | 295 |
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 115 | 0 |
Total Past Due and Nonaccrual | 323 | 329 |
Current | 64,370 | 58,928 |
Total | 64,693 | 59,257 |
Agricultural other [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | 312 | 0 |
Accruing Interest and Past Due: 60-89 Days | 84 | 0 |
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 396 | 0 |
Current | 32,572 | 33,332 |
Total | 32,968 | 33,332 |
Total residential real estate [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | 2,115 | 4,030 |
Accruing Interest and Past Due: 60-89 Days | 784 | 1,030 |
Accruing Interest and Pass Due: 90 Days or More | 91 | 129 |
Nonaccrual | 1,623 | 1,819 |
Total Past Due and Nonaccrual | 4,613 | 7,008 |
Current | 273,932 | 282,923 |
Total | 278,545 | 289,931 |
Residential real estate senior liens [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | 1,558 | 3,441 |
Accruing Interest and Past Due: 60-89 Days | 766 | 986 |
Accruing Interest and Pass Due: 90 Days or More | 91 | 129 |
Nonaccrual | 1,239 | 1,765 |
Total Past Due and Nonaccrual | 3,654 | 6,321 |
Current | 222,355 | 229,865 |
Total | 226,009 | 236,186 |
Residential real estate junior liens [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | 311 | 408 |
Accruing Interest and Past Due: 60-89 Days | 18 | 44 |
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 23 | 29 |
Total Past Due and Nonaccrual | 352 | 481 |
Current | 11,984 | 13,074 |
Total | 12,336 | 13,555 |
Residential real estate home equity lines of credit [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | 246 | 181 |
Accruing Interest and Past Due: 60-89 Days | 0 | 0 |
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 361 | 25 |
Total Past Due and Nonaccrual | 607 | 206 |
Current | 39,593 | 39,984 |
Total | 40,200 | 40,190 |
Total consumer [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | 84 | 192 |
Accruing Interest and Past Due: 60-89 Days | 4 | 16 |
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 10 | 51 |
Total Past Due and Nonaccrual | 98 | 259 |
Current | 32,212 | 33,154 |
Total | 32,310 | 33,413 |
Consumer secured [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | 46 | 167 |
Accruing Interest and Past Due: 60-89 Days | 0 | 11 |
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 10 | 50 |
Total Past Due and Nonaccrual | 56 | 228 |
Current | 27,827 | 28,444 |
Total | 27,883 | 28,672 |
Consumer unsecured [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Accruing Interest and Past Due: 30-59 Days | 38 | 25 |
Accruing Interest and Past Due: 60-89 Days | 4 | 5 |
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 0 | 1 |
Total Past Due and Nonaccrual | 42 | 31 |
Current | 4,385 | 4,710 |
Total | $4,427 | $4,741 |
Loans_and_ALLL_Summary_of_info
Loans and ALLL (Summary of information pertaining to impaired loans) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Outstanding Balance | $20,315 | ' | $20,315 | ' | $21,468 |
Impaired loans without a valuation allowance, Outstanding Balance | 7,412 | ' | 7,412 | ' | 8,307 |
Impaired loans, Outstanding Balance | 27,727 | ' | 27,727 | ' | 29,775 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 22,325 | ' | 22,325 | ' | 22,878 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 8,191 | ' | 8,191 | ' | 9,743 |
Impaired loans, Unpaid Principal Balance | 30,516 | ' | 30,516 | ' | 32,621 |
Impaired loans, Valuation Allowance | 3,940 | ' | 3,940 | ' | 4,352 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Average Outstanding Balance | 20,825 | 19,396 | 21,141 | 19,790 | ' |
Impaired loans without a valuation allowance, Average Outstanding Balance | 7,646 | 5,807 | 7,839 | 5,655 | ' |
Impaired loans, Average Outstanding Balance | 28,471 | 25,203 | 28,980 | 25,445 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Interest Income Recognized | 239 | 251 | 492 | 473 | ' |
Impaired loans without a valuation allowance, Interest Income Recognized | 113 | 101 | 265 | 226 | ' |
Impaired loans, Interest Income Recognized | 352 | 352 | 757 | 699 | ' |
Total commercial [Member] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Outstanding Balance | 13,164 | ' | 13,164 | ' | 13,816 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Unpaid Principal Balance | 14,250 | ' | 14,250 | ' | 14,943 |
Impaired loans, Valuation Allowance | 1,633 | ' | 1,633 | ' | 2,035 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Average Outstanding Balance | 13,601 | 13,728 | 13,761 | 13,932 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Interest Income Recognized | 194 | 243 | 414 | 476 | ' |
Commercial real estate [Member] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Outstanding Balance | 6,512 | ' | 6,512 | ' | 6,748 |
Impaired loans without a valuation allowance, Outstanding Balance | 5,708 | ' | 5,708 | ' | 5,622 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 6,720 | ' | 6,720 | ' | 6,888 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 6,326 | ' | 6,326 | ' | 6,499 |
Impaired loans, Valuation Allowance | 1,621 | ' | 1,621 | ' | 1,915 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Average Outstanding Balance | 6,644 | 7,990 | 6,701 | 8,084 | ' |
Impaired loans without a valuation allowance, Average Outstanding Balance | 5,819 | 3,954 | 5,797 | 3,790 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Interest Income Recognized | 91 | 102 | 185 | 221 | ' |
Impaired loans without a valuation allowance, Interest Income Recognized | 91 | 85 | 193 | 158 | ' |
Commercial other [Member] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Outstanding Balance | 629 | ' | 629 | ' | 521 |
Impaired loans without a valuation allowance, Outstanding Balance | 315 | ' | 315 | ' | 925 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 848 | ' | 848 | ' | 521 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 356 | ' | 356 | ' | 1,035 |
Impaired loans, Valuation Allowance | 12 | ' | 12 | ' | 120 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Average Outstanding Balance | 852 | 764 | 825 | 932 | ' |
Impaired loans without a valuation allowance, Average Outstanding Balance | 286 | 1,020 | 438 | 1,126 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Interest Income Recognized | 11 | 37 | 29 | 38 | ' |
Impaired loans without a valuation allowance, Interest Income Recognized | 1 | 19 | 7 | 59 | ' |
Total agricultural [Member] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Outstanding Balance | 1,583 | ' | 1,583 | ' | 1,538 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Unpaid Principal Balance | 1,703 | ' | 1,703 | ' | 1,658 |
Impaired loans, Valuation Allowance | 36 | ' | 36 | ' | 30 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Average Outstanding Balance | 1,683 | 682 | 1,671 | 719 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Interest Income Recognized | 20 | -8 | 65 | 2 | ' |
Agricultural real estate [Member] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Outstanding Balance | 204 | ' | 204 | ' | 90 |
Impaired loans without a valuation allowance, Outstanding Balance | 1,361 | ' | 1,361 | ' | 1,370 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 204 | ' | 204 | ' | 90 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 1,361 | ' | 1,361 | ' | 1,370 |
Impaired loans, Valuation Allowance | 36 | ' | 36 | ' | 30 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Average Outstanding Balance | 147 | 91 | 118 | 124 | ' |
Impaired loans without a valuation allowance, Average Outstanding Balance | 1,405 | 133 | 1,407 | 67 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Interest Income Recognized | -1 | 1 | 0 | 4 | ' |
Impaired loans without a valuation allowance, Interest Income Recognized | 21 | 2 | 37 | 2 | ' |
Agricultural other [Member] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans without a valuation allowance, Outstanding Balance | 18 | ' | 18 | ' | 78 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 138 | ' | 138 | ' | 198 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Average Outstanding Balance | 0 | 0 | 0 | 105 | ' |
Impaired loans without a valuation allowance, Average Outstanding Balance | 131 | 458 | 146 | 423 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 0 | 0 | 0 | ' |
Impaired loans without a valuation allowance, Interest Income Recognized | 0 | -11 | 28 | -4 | ' |
Total residential real estate [Member] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Outstanding Balance | 12,906 | ' | 12,906 | ' | 14,302 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Unpaid Principal Balance | 14,489 | ' | 14,489 | ' | 15,872 |
Impaired loans, Valuation Allowance | 2,270 | ' | 2,270 | ' | 2,287 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Average Outstanding Balance | 13,119 | 10,730 | 13,468 | 10,726 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Interest Income Recognized | 137 | 116 | 276 | 219 | ' |
Residential real estate senior liens [Member] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Outstanding Balance | 12,454 | ' | 12,454 | ' | 14,061 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 13,727 | ' | 13,727 | ' | 15,315 |
Impaired loans, Valuation Allowance | 2,242 | ' | 2,242 | ' | 2,278 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Average Outstanding Balance | 12,786 | 10,466 | 13,188 | 10,460 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Interest Income Recognized | 126 | 110 | 264 | 209 | ' |
Residential real estate junior liens [Member] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Outstanding Balance | 92 | ' | 92 | ' | 48 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 102 | ' | 102 | ' | 64 |
Impaired loans, Valuation Allowance | 19 | ' | 19 | ' | 9 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Average Outstanding Balance | 68 | 85 | 57 | 85 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Interest Income Recognized | 1 | 1 | 1 | 1 | ' |
Residential real estate home equity lines of credit [Member] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Outstanding Balance | 360 | ' | 360 | ' | 0 |
Impaired loans without a valuation allowance, Outstanding Balance | 0 | ' | 0 | ' | 193 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 660 | ' | 660 | ' | 0 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 0 | ' | 0 | ' | 493 |
Impaired loans, Valuation Allowance | 9 | ' | 9 | ' | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Average Outstanding Balance | 265 | 0 | 175 | 0 | ' |
Impaired loans without a valuation allowance, Average Outstanding Balance | 0 | 179 | 48 | 181 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Interest Income Recognized | 10 | 0 | 11 | 0 | ' |
Impaired loans without a valuation allowance, Interest Income Recognized | 0 | 5 | 0 | 9 | ' |
Total consumer [Member] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Outstanding Balance | 74 | ' | 74 | ' | 119 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Unpaid Principal Balance | 74 | ' | 74 | ' | 148 |
Impaired loans, Valuation Allowance | 1 | ' | 1 | ' | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Average Outstanding Balance | 68 | 63 | 80 | 68 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' | ' | ' |
Impaired loans, Interest Income Recognized | 1 | 1 | 2 | 2 | ' |
Consumer secured [Member] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Outstanding Balance | 64 | ' | 64 | ' | 0 |
Impaired loans without a valuation allowance, Outstanding Balance | 10 | ' | 10 | ' | 119 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Unpaid Principal Balance | 64 | ' | 64 | ' | 0 |
Impaired loans without a valuation allowance, Unpaid Principal Balance | 10 | ' | 10 | ' | 148 |
Impaired loans, Valuation Allowance | 1 | ' | 1 | ' | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Average Outstanding Balance | 63 | 0 | 77 | 0 | ' |
Impaired loans without a valuation allowance, Average Outstanding Balance | 5 | 63 | 3 | 68 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' | ' | ' |
Impaired loans with a valuation allowance, Interest Income Recognized | 1 | 0 | 2 | 0 | ' |
Impaired loans without a valuation allowance, Interest Income Recognized | $0 | $1 | $0 | $2 | ' |
Loans_and_ALLL_Summary_of_info1
Loans and ALLL (Summary of information pertaining to TDRs) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
loan | loan | loan | loan | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 8 | 14 | 22 | 23 |
Pre-Modification Recorded Investment | $387 | $3,788 | $1,233 | $4,722 |
Post-Modification Recorded Investment | 387 | 3,592 | 1,233 | 4,509 |
Commercial other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 1 | 7 | 5 | 7 |
Pre-Modification Recorded Investment | 8 | 3,153 | 363 | 3,153 |
Post-Modification Recorded Investment | 8 | 2,957 | 363 | 2,957 |
Agricultural other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 1 |
Pre-Modification Recorded Investment | 0 | 0 | 0 | 134 |
Post-Modification Recorded Investment | 0 | 0 | 0 | 134 |
Total residential real estate [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 5 | 7 | 14 | 15 |
Pre-Modification Recorded Investment | 371 | 635 | 862 | 1,435 |
Post-Modification Recorded Investment | 371 | 635 | 862 | 1,418 |
Residential real estate senior liens [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 3 | 7 | 12 | 15 |
Pre-Modification Recorded Investment | 170 | 635 | 661 | 1,435 |
Post-Modification Recorded Investment | 170 | 635 | 661 | 1,418 |
Residential real estate junior liens [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 1 | 0 | 1 | 0 |
Pre-Modification Recorded Investment | 41 | 0 | 41 | 0 |
Post-Modification Recorded Investment | 41 | 0 | 41 | 0 |
Residential real estate home equity lines of credit [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 1 | 0 | 1 | 0 |
Pre-Modification Recorded Investment | 160 | 0 | 160 | 0 |
Post-Modification Recorded Investment | 160 | 0 | 160 | 0 |
Consumer unsecured [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 2 | 0 | 3 | 0 |
Pre-Modification Recorded Investment | 8 | 0 | 8 | 0 |
Post-Modification Recorded Investment | 8 | 0 | 8 | 0 |
Below Market Interest Rate [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 3 | 7 | 10 | 11 |
Pre-Modification Recorded Investment | 213 | 1,771 | 618 | 2,116 |
Below Market Interest Rate [Member] | Commercial other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 0 | 3 | 4 | 3 |
Pre-Modification Recorded Investment | 0 | 1,357 | 355 | 1,357 |
Below Market Interest Rate [Member] | Agricultural other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 1 |
Pre-Modification Recorded Investment | 0 | 0 | 0 | 134 |
Below Market Interest Rate [Member] | Total residential real estate [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 2 | 4 | 4 | 7 |
Pre-Modification Recorded Investment | 208 | 414 | 258 | 625 |
Below Market Interest Rate [Member] | Residential real estate senior liens [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 1 | 4 | 3 | 7 |
Pre-Modification Recorded Investment | 48 | 414 | 98 | 625 |
Below Market Interest Rate [Member] | Residential real estate junior liens [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 0 |
Pre-Modification Recorded Investment | 0 | 0 | 0 | 0 |
Below Market Interest Rate [Member] | Residential real estate home equity lines of credit [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 1 | 0 | 1 | 0 |
Pre-Modification Recorded Investment | 160 | 0 | 160 | 0 |
Below Market Interest Rate [Member] | Consumer unsecured [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 1 | 0 | 2 | 0 |
Pre-Modification Recorded Investment | 5 | 0 | 5 | 0 |
Below Market Interest Rate and Extension of Amortization Period [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 5 | 7 | 12 | 12 |
Pre-Modification Recorded Investment | 174 | 2,017 | 615 | 2,606 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Commercial other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 1 | 4 | 1 | 4 |
Pre-Modification Recorded Investment | 8 | 1,796 | 8 | 1,796 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Agricultural other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 0 |
Pre-Modification Recorded Investment | 0 | 0 | 0 | 0 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Total residential real estate [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 3 | 3 | 10 | 8 |
Pre-Modification Recorded Investment | 163 | 221 | 604 | 810 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Residential real estate senior liens [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 2 | 3 | 9 | 8 |
Pre-Modification Recorded Investment | 122 | 221 | 563 | 810 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Residential real estate junior liens [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 1 | 0 | 1 | 0 |
Pre-Modification Recorded Investment | 41 | 0 | 41 | 0 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Residential real estate home equity lines of credit [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 0 |
Pre-Modification Recorded Investment | 0 | 0 | 0 | 0 |
Below Market Interest Rate and Extension of Amortization Period [Member] | Consumer unsecured [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 1 | 0 | 1 | 0 |
Pre-Modification Recorded Investment | $3 | $0 | $3 | $0 |
Loans_and_ALLL_Summary_of_TDR_
Loans and ALLL (Summary of TDR loan balances) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Troubled debt restructurings | $24,192 | $25,865 |
Loans_and_ALLL_Narrative_Detai
Loans and ALLL (Narrative) (Details) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
loan | loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Threshold period of continuous performance to return loans to accrual status | '6 months | ' | ' |
Financing receivable, amortization term threshold triggering probable sale to Freddie Mac | '15 years | ' | ' |
Migration analysis of loan portfolio period | '5 years | ' | ' |
Advance in connection with impaired loans | $36 | ' | $134 |
Financing Receivable Modifications Default Number of Contracts | 0 | 0 | ' |
Minimum [Member] | 4 - Low satisfactory [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Delinquency period | '10 days | ' | ' |
Minimum [Member] | 5 - Special mention [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Delinquency period | '30 days | ' | ' |
Maximum [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Financing receivable, amortization term | '30 years | ' | ' |
Maximum [Member] | 4 - Low satisfactory [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Delinquency period | '30 days | ' | ' |
Maximum [Member] | 5 - Special mention [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Delinquency period | '60 days | ' | ' |
Commercial, Agricultural, and Residential Portfolio Segments [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Number of days past due (or more), accrual of interest discontinued | '90 days | ' | ' |
Consumer [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Maximum days of consumer loan charged off | '180 days | ' | ' |
Consumer [Member] | Maximum [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Financing receivable, amortization term | '12 years | ' | ' |
Commercial and Agricultural [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Maximum percentage of loan | 0.8 | ' | ' |
Commercial and Agricultural [Member] | Customer Concentration Risk [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Maximum amount of loans | 15,000 | ' | ' |
Residential Real Estate [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Maximum percentage of loan | 0.95 | ' | ' |
Maximum percentage of principal, interest, taxes and hazard insurance on property over gross income | 0.28 | ' | ' |
Maximum percentage of debt servicing over gross income | 0.36 | ' | ' |
Maximum amount without corporation approval | $500 | ' | ' |
Residential, Privately Insured, Financing Receivable [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Maximum percentage of loan | 0.8 | ' | ' |
Equity_Securities_Without_Read2
Equity Securities Without Readily Determinable Fair Values (Equity securities without readily determinable fair values) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Equity Method And Other Investments [Abstract] | ' | ' |
FHLB Stock | $9,100 | $8,100 |
FRB Stock | 1,879 | 1,879 |
Other | 341 | 344 |
Total | 19,303 | 18,293 |
Investment in Corporate Settlement Solutions [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Equity method investments | 6,983 | 6,970 |
Investment in Valley Financial Corporation [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Equity method investments | $1,000 | $1,000 |
Borrowed_Funds_Borrowed_funds_
Borrowed Funds (Borrowed funds obligations) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Debt [Line Items] | ' | ' |
Borrowed funds | $279,457 | $279,326 |
Borrowed funds, Rate | 1.27% | 1.35% |
Securities Sold under Agreements to Repurchase [Member] | ' | ' |
Schedule of Debt [Line Items] | ' | ' |
Borrowed funds | 87,058 | 106,025 |
Borrowed funds, Rate | 0.13% | 0.13% |
Federal Funds Purchased [Member] | ' | ' |
Schedule of Debt [Line Items] | ' | ' |
Borrowed funds | 9,200 | 0 |
Borrowed funds, Rate | 0.39% | 0.00% |
Federal Home Loan Bank Advances [Member] | ' | ' |
Schedule of Debt [Line Items] | ' | ' |
Borrowed funds | 182,000 | 162,000 |
Borrowed funds, Rate | 1.84% | 2.02% |
Securities Sold under Agreements to Repurchase [Member] | ' | ' |
Schedule of Debt [Line Items] | ' | ' |
Borrowed funds | $1,199 | $11,301 |
Borrowed funds, Rate | 4.27% | 3.30% |
Borrowed_Funds_Maturity_and_we
Borrowed Funds (Maturity and weighted average interest rates of FHLB advances) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank, Advances [Line Items] | ' | ' |
FHLB advances, rate | 1.84% | 2.02% |
FHLB advances | $182,000 | $162,000 |
Fixed Rate Advances Due 2014 [Member] | ' | ' |
Federal Home Loan Bank, Advances [Line Items] | ' | ' |
FHLB advances, rate | 0.48% | 0.48% |
FHLB fixed rate advances | 10,000 | 10,000 |
Variable Rate Advances Due 2014 [Member] | ' | ' |
Federal Home Loan Bank, Advances [Line Items] | ' | ' |
FHLB advances, rate | 0.42% | 0.00% |
FHLB variable rate advances | 20,000 | 0 |
Fixed Rate Advances Due 2015 [Member] | ' | ' |
Federal Home Loan Bank, Advances [Line Items] | ' | ' |
FHLB advances, rate | 0.84% | 0.84% |
FHLB fixed rate advances | 32,000 | 32,000 |
Fixed Rate Advances Due 2016 [Member] | ' | ' |
Federal Home Loan Bank, Advances [Line Items] | ' | ' |
FHLB advances, rate | 2.15% | 2.15% |
FHLB fixed rate advances | 10,000 | 10,000 |
Fixed Rate Advances Due 2017 [Member] | ' | ' |
Federal Home Loan Bank, Advances [Line Items] | ' | ' |
FHLB advances, rate | 1.95% | 1.95% |
FHLB fixed rate advances | 30,000 | 30,000 |
Fixed Rate Advances Due 2018 [Member] | ' | ' |
Federal Home Loan Bank, Advances [Line Items] | ' | ' |
FHLB advances, rate | 2.35% | 2.35% |
FHLB fixed rate advances | 40,000 | 40,000 |
Fixed Rate Advances Due 2019 [Member] | ' | ' |
Federal Home Loan Bank, Advances [Line Items] | ' | ' |
FHLB advances, rate | 3.11% | 3.11% |
FHLB fixed rate advances | 20,000 | 20,000 |
Fixed Rate Advances Due 2020 [Member] | ' | ' |
Federal Home Loan Bank, Advances [Line Items] | ' | ' |
FHLB advances, rate | 1.98% | 1.98% |
FHLB fixed rate advances | 10,000 | 10,000 |
Fixed Rate Advances Due 2023 [Member] | ' | ' |
Federal Home Loan Bank, Advances [Line Items] | ' | ' |
FHLB advances, rate | 3.90% | 3.90% |
FHLB fixed rate advances | $10,000 | $10,000 |
Borrowed_Funds_Maturity_and_we1
Borrowed Funds (Maturity and weighted average interest rates of Repurchase Agreements) (Details) (Securities Sold under Agreements to Repurchase [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Securities Sold under Agreements to Repurchase [Member] | ' | ' |
Long-term Debt, Fiscal Year Maturity [Abstract] | ' | ' |
Repurchase agreements due 2014, Remainder of year, Amount | $767 | ' |
Repurchase agreements due 2014, Amount | ' | 10,876 |
Repurchase agreements due 2015, Amount | 432 | 425 |
Total, Amount | $1,199 | $11,301 |
Long-term Debt, Maturities Summary, Average Interest Rate Of Amounts Due [Abstract] | ' | ' |
Repurchase agreements due 2014, Rate | 4.84% | 3.30% |
Repurchase agreements due 2015, Rate | 3.25% | 3.25% |
Total, Rate | 4.27% | 3.30% |
Borrowed_Funds_Shortterm_borro
Borrowed Funds (Short-term borrowings) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Securities Sold under Agreements to Repurchase [Member] | ' | ' | ' | ' |
Short-term Debt [Line Items] | ' | ' | ' | ' |
Maximum Month End Balance | $90,813 | $71,668 | $94,741 | $71,668 |
Quarter to Date Average Balance | 90,484 | 69,692 | 92,412 | 65,363 |
Weighted Average Interest Rate During the Period | 0.13% | 0.15% | 0.13% | 0.15% |
Federal Funds Purchased [Member] | ' | ' | ' | ' |
Short-term Debt [Line Items] | ' | ' | ' | ' |
Maximum Month End Balance | 16,500 | 13,700 | 16,500 | 13,700 |
Quarter to Date Average Balance | $6,849 | $6,022 | $6,305 | $3,646 |
Weighted Average Interest Rate During the Period | 0.48% | 0.57% | 0.47% | 0.56% |
Borrowed_Funds_Pledged_financi
Borrowed Funds (Pledged financial instruments) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Pledged to secure borrowed funds | $295,175 | $320,173 |
Pledged to secure repurchase agreements | 144,683 | 148,930 |
Pledged for public deposits and for other purposes necessary or required by law | 18,446 | 20,922 |
Total | $458,304 | $490,025 |
Borrowed_Funds_Narrative_Detai
Borrowed Funds (Narrative) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | Securities Sold under Agreements to Repurchase [Member] | Securities Sold under Agreements to Repurchase [Member] | Federal Funds Purchased [Member] | Federal Funds Purchased [Member] | Federal Reserve Bank Advances [Member] | Federal Reserve Bank Advances [Member] | ||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, term | ' | ' | '1 day | '4 days | '1 day | '4 days | '1 day | '4 days |
Carrying value of securities sold under agreements to repurchase | $144,683 | $148,930 | ' | ' | ' | ' | ' | ' |
Fair value of securities sold under agreements to repurchase | 144,683 | 148,930 | ' | ' | ' | ' | ' | ' |
Additional borrowing capacity | $84,668 | ' | ' | ' | ' | ' | ' | ' |
Other_Noninterest_Expenses_Exp
Other Noninterest Expenses (Expenses included in other noninterest expenses) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Summary of expenses included in other noninterest expenses | ' | ' | ' | ' |
Marketing and community relations | $211 | $432 | $454 | $674 |
FDIC insurance premiums | 221 | 273 | 423 | 545 |
Directors fees | 183 | 205 | 378 | 404 |
Audit and related fees | 182 | 162 | 320 | 301 |
Education and travel | 143 | 116 | 264 | 238 |
Postage and freight | 90 | 94 | 198 | 193 |
Printing and supplies | 87 | 99 | 189 | 185 |
Loan underwriting fees | 92 | 123 | 187 | 239 |
Consulting fees | 76 | 83 | 167 | 155 |
All other | 735 | 668 | 1,430 | 1,213 |
Total other | $2,020 | $2,255 | $4,010 | $4,147 |
Federal_Income_Taxes_Details
Federal Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Federal statutory tax rate | 34.00% | 34.00% | 34.00% | 34.00% |
Income taxes at 34% statutory rate | $1,448 | $1,311 | $2,763 | $2,556 |
Interest income on tax exempt municipal securities | -503 | -424 | -997 | -845 |
Earnings on corporate owned life insurance policies | -64 | -65 | -127 | -122 |
Effect of tax credits | -191 | -196 | -388 | -397 |
Other | -43 | -26 | -77 | -52 |
Total effect of nontaxable income | -801 | -711 | -1,589 | -1,416 |
Effect of nondeductible expenses | 45 | 43 | 78 | 79 |
Federal income tax expense | $692 | $643 | $1,252 | $1,219 |
Defined_Benefit_Pension_Plan_D
Defined Benefit Pension Plan (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Estimated future employer contributions in current fiscal year | ' | ' | $0 | ' |
Plan Contributions | 0 | 0 | 0 | 215,000 |
Interest cost on benefit obligation | 121,000 | 112,000 | 243,000 | 225,000 |
Expected return on plan assets | -154,000 | -144,000 | -308,000 | -287,000 |
Amortization of unrecognized actuarial net loss | 43,000 | 82,000 | 85,000 | 165,000 |
Net periodic benefit cost | $10,000 | $50,000 | $20,000 | $103,000 |
Fair_Value_Narrative_Details_T
Fair Value (Narrative) (Details Textual) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Maximum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Maturity dates of Interest bearing balances | '3 years | ' |
Federal Funds Purchased, Securities Sold Under Agreements To Repurchase, And Other Borrowings [Member] | Maximum [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Debt instrument, term | '90 days | ' |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impairments recorded on equity securities without readily determinable fair values | $0 | $0 |
Impairments recorded on goodwill and other acquisition intangibles | $0 | $0 |
Fair_Value_Quantitative_inform
Fair Value (Quantitative information about impaired loans) (Details) (Discounted appraisal value [Member], Level 3 [Member], USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discounted appraisal value at fair value | 13,352 | 13,902 |
Real Estate [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 20.00% | 20.00% |
Real Estate [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 30.00% | 30.00% |
Equipment [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | ' | 50.00% |
Equipment [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 30.00% | ' |
Equipment [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 40.00% | ' |
Livestock [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | ' | 50.00% |
Cash crop inventory [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 40.00% | 50.00% |
Other inventory [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 50.00% | 75.00% |
Accounts receivable [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | ' | 75.00% |
Accounts receivable [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 50.00% | ' |
Accounts receivable [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 75.00% | ' |
Liquor License [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 75.00% | ' |
Fair_Value_Quantitative_inform1
Fair Value (Quantitative information related to foreclosed assets) (Details) (Discounted appraisal value [Member], Level 3 [Member], USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discounted appraisal value at fair value | 1,132 | 1,412 |
Real Estate [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 20.00% | 20.00% |
Real Estate [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Fair Value Inputs, Discount Rate | 30.00% | 30.00% |
Fair_Value_Carrying_amount_and
Fair Value (Carrying amount and estimated fair value of financial instruments) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Level 1 [Member] | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | $27,380 | $41,558 | ||
Certificates of deposit held in other financial institutions | 0 | 0 | ||
Mortgage loans AFS | 0 | 0 | ||
Total loans | 0 | 0 | ||
Less allowance for loan losses | 0 | 0 | ||
Net loans | 0 | 0 | ||
Accrued interest receivable | 5,448 | 5,442 | ||
Equity securities without readily determinable fair values | 0 | [1] | 0 | [1] |
Originated mortgage servicing rights | 0 | 0 | ||
LIABILITIES | ' | ' | ||
Deposits without stated maturities | 609,280 | 593,754 | ||
Deposits with stated maturities | 0 | 0 | ||
Borrowed funds | 0 | 0 | ||
Accrued interest payable | 527 | 633 | ||
Level 2 [Member] | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | 0 | 0 | ||
Certificates of deposit held in other financial institutions | 580 | 582 | ||
Mortgage loans AFS | 357 | 1,123 | ||
Total loans | 0 | 0 | ||
Less allowance for loan losses | 0 | 0 | ||
Net loans | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Equity securities without readily determinable fair values | 0 | [1] | 0 | [1] |
Originated mortgage servicing rights | 2,703 | 2,667 | ||
LIABILITIES | ' | ' | ||
Deposits without stated maturities | 0 | 0 | ||
Deposits with stated maturities | 453,458 | 452,803 | ||
Borrowed funds | 263,604 | 283,060 | ||
Accrued interest payable | 0 | 0 | ||
Level 3 [Member] | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | 0 | 0 | ||
Certificates of deposit held in other financial institutions | 0 | 0 | ||
Mortgage loans AFS | 0 | 0 | ||
Total loans | 802,848 | 808,246 | ||
Less allowance for loan losses | 10,700 | 11,500 | ||
Net loans | 792,148 | 796,746 | ||
Accrued interest receivable | 0 | 0 | ||
Equity securities without readily determinable fair values | 0 | [1] | 0 | [1] |
Originated mortgage servicing rights | 0 | 0 | ||
LIABILITIES | ' | ' | ||
Deposits without stated maturities | 0 | 0 | ||
Deposits with stated maturities | 0 | 0 | ||
Borrowed funds | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Carrying Value [Member] | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | 27,380 | 41,558 | ||
Certificates of deposit held in other financial institutions | 580 | 580 | ||
Mortgage loans AFS | 340 | 1,104 | ||
Total loans | 816,307 | 808,037 | ||
Less allowance for loan losses | 10,700 | 11,500 | ||
Net loans | 805,607 | 796,537 | ||
Accrued interest receivable | 5,448 | 5,442 | ||
Equity securities without readily determinable fair values | 19,303 | [1] | 18,293 | [1] |
Originated mortgage servicing rights | 2,618 | 2,555 | ||
LIABILITIES | ' | ' | ||
Deposits without stated maturities | 609,280 | 593,754 | ||
Deposits with stated maturities | 451,648 | 450,012 | ||
Borrowed funds | 279,457 | 279,326 | ||
Accrued interest payable | 527 | 633 | ||
Estimated Fair Value [Member] | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | 27,380 | 41,558 | ||
Certificates of deposit held in other financial institutions | 580 | 582 | ||
Mortgage loans AFS | 357 | 1,123 | ||
Total loans | 802,848 | 808,246 | ||
Less allowance for loan losses | 10,700 | 11,500 | ||
Net loans | 792,148 | 796,746 | ||
Accrued interest receivable | 5,448 | 5,442 | ||
Equity securities without readily determinable fair values | 19,303 | [1] | 18,293 | [1] |
Originated mortgage servicing rights | 2,703 | 2,667 | ||
LIABILITIES | ' | ' | ||
Deposits without stated maturities | 609,280 | 593,754 | ||
Deposits with stated maturities | 453,458 | 452,803 | ||
Borrowed funds | 263,604 | 283,060 | ||
Accrued interest payable | $527 | $633 | ||
[1] | Due to the characteristics of equity securities without readily determinable fair values, they are not disclosed under a specific fair value hierarchy. If we were to record an impairment adjustment related to these securities, such amount would be classified as a nonrecurring Level 3 fair value adjustment. |
Fair_Value_Recorded_amount_of_
Fair Value (Recorded amount of assets and liabilities measured at fair value) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
AFS Securities | ' | ' |
AFS securities | $550,518 | $512,062 |
Fair value, total | 565,002 | 527,901 |
Level 1 [Member] | ' | ' |
AFS Securities | ' | ' |
Fair value, total | 6,214 | 5,827 |
Percent of assets and liabilities measured at fair value | 1.10% | 1.10% |
Level 2 [Member] | ' | ' |
AFS Securities | ' | ' |
Fair value, total | 544,304 | 506,760 |
Percent of assets and liabilities measured at fair value | 96.34% | 96.00% |
Level 3 [Member] | ' | ' |
AFS Securities | ' | ' |
Fair value, total | 14,484 | 15,314 |
Percent of assets and liabilities measured at fair value | 2.56% | 2.90% |
Recurring items [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 550,518 | 512,062 |
Recurring items [Member] | Government sponsored enterprises [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 24,104 | 23,745 |
Recurring items [Member] | States and political subdivisions [Member] | ' | ' |
Trading securities | ' | ' |
Trading securities States and political subdivisions | 0 | 525 |
AFS Securities | ' | ' |
AFS securities | 214,210 | 201,988 |
Recurring items [Member] | Auction rate money market preferred [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 2,867 | 2,577 |
Recurring items [Member] | Preferred stock [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 6,214 | 5,827 |
Recurring items [Member] | Mortgage-backed securities [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 162,992 | 144,115 |
Recurring items [Member] | Collateralized mortgage obligations [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 140,131 | 133,810 |
Recurring items [Member] | Level 1 [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 6,214 | 5,827 |
Recurring items [Member] | Level 1 [Member] | Government sponsored enterprises [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | States and political subdivisions [Member] | ' | ' |
Trading securities | ' | ' |
Trading securities States and political subdivisions | 0 | 0 |
AFS Securities | ' | ' |
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Auction rate money market preferred [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Preferred stock [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 6,214 | 5,827 |
Recurring items [Member] | Level 1 [Member] | Mortgage-backed securities [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 0 | 0 |
Recurring items [Member] | Level 1 [Member] | Collateralized mortgage obligations [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 0 | 0 |
Recurring items [Member] | Level 2 [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 544,304 | 506,235 |
Recurring items [Member] | Level 2 [Member] | Government sponsored enterprises [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 24,104 | 23,745 |
Recurring items [Member] | Level 2 [Member] | States and political subdivisions [Member] | ' | ' |
Trading securities | ' | ' |
Trading securities States and political subdivisions | 0 | 525 |
AFS Securities | ' | ' |
AFS securities | 214,210 | 201,988 |
Recurring items [Member] | Level 2 [Member] | Auction rate money market preferred [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 2,867 | 2,577 |
Recurring items [Member] | Level 2 [Member] | Preferred stock [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 0 | 0 |
Recurring items [Member] | Level 2 [Member] | Mortgage-backed securities [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 162,992 | 144,115 |
Recurring items [Member] | Level 2 [Member] | Collateralized mortgage obligations [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 140,131 | 133,810 |
Recurring items [Member] | Level 3 [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Government sponsored enterprises [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | States and political subdivisions [Member] | ' | ' |
Trading securities | ' | ' |
Trading securities States and political subdivisions | 0 | 0 |
AFS Securities | ' | ' |
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Auction rate money market preferred [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Preferred stock [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Mortgage-backed securities [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 0 | 0 |
Recurring items [Member] | Level 3 [Member] | Collateralized mortgage obligations [Member] | ' | ' |
AFS Securities | ' | ' |
AFS securities | 0 | 0 |
Nonrecurring items [Member] | ' | ' |
AFS Securities | ' | ' |
Impaired loans (net of the allowance for loan losses) | 13,352 | 13,902 |
Foreclosed assets | 1,132 | 1,412 |
Nonrecurring items [Member] | Level 1 [Member] | ' | ' |
AFS Securities | ' | ' |
Impaired loans (net of the allowance for loan losses) | 0 | 0 |
Foreclosed assets | 0 | 0 |
Nonrecurring items [Member] | Level 2 [Member] | ' | ' |
AFS Securities | ' | ' |
Impaired loans (net of the allowance for loan losses) | 0 | 0 |
Foreclosed assets | 0 | 0 |
Nonrecurring items [Member] | Level 3 [Member] | ' | ' |
AFS Securities | ' | ' |
Impaired loans (net of the allowance for loan losses) | 13,352 | 13,902 |
Foreclosed assets | $1,132 | $1,412 |
Fair_Value_Changes_in_fair_val
Fair Value (Changes in fair value of assets and liabilities) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Changes in fair value, gain (loss), Trading securities | ' | ' | ($5) | ($18) |
Changes in fair value, gain (loss), Total | -21 | -76 | -68 | -110 |
Fair Value, Measurements, Recurring [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Changes in fair value, gain (loss), Trading securities | -1 | -8 | -5 | -18 |
Fair Value, Measurements, Nonrecurring [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Changes in fair value, gain (loss), Foreclosed assets | ($20) | ($68) | ($63) | ($92) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Changes in AOCI by component) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | ($2,560) | $3,870 | ($6,341) | $5,007 |
OCI before reclassifications | 4,448 | -11,997 | 9,968 | -13,958 |
Amounts reclassified from AOCI | 0 | 0 | 0 | -99 |
Net unrealized gains (losses) | 4,448 | -11,997 | 9,968 | -14,057 |
Tax effect | -1,420 | 3,979 | -3,159 | 4,902 |
Unrealized gains (losses), net of tax | 3,028 | -8,018 | 6,809 | -9,155 |
Ending Balance | 468 | -4,148 | 468 | -4,148 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | ' | ' | ' | ' |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | -426 | 7,541 | -4,207 | 8,678 |
OCI before reclassifications | 4,448 | -11,997 | 9,968 | -13,958 |
Amounts reclassified from AOCI | 0 | 0 | 0 | -99 |
Net unrealized gains (losses) | 4,448 | -11,997 | 9,968 | -14,057 |
Tax effect | -1,420 | 3,979 | -3,159 | 4,902 |
Unrealized gains (losses), net of tax | 3,028 | -8,018 | 6,809 | -9,155 |
Ending Balance | 2,602 | -477 | 2,602 | -477 |
Defined Benefit Pension Plan [Member] | ' | ' | ' | ' |
Increase (Decrease) in Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | -2,134 | -3,671 | -2,134 | -3,671 |
OCI before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Net unrealized gains (losses) | 0 | 0 | 0 | 0 |
Tax effect | 0 | 0 | 0 | 0 |
Unrealized gains (losses), net of tax | 0 | 0 | 0 | 0 |
Ending Balance | ($2,134) | ($3,671) | ($2,134) | ($3,671) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (Components of unrealized holding gains on AFS securities) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | $4,448 | ($11,997) | $9,968 | ($13,958) |
Reclassification adjustment for net realized (gains) losses included in net income | 0 | 0 | 0 | -99 |
Net unrealized gains (losses) | 4,448 | -11,997 | 9,968 | -14,057 |
Tax effect | -1,420 | 3,979 | -3,159 | 4,902 |
Unrealized gains (losses), net of tax | 3,028 | -8,018 | 6,809 | -9,155 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | 4,448 | -11,997 | 9,968 | -13,958 |
Reclassification adjustment for net realized (gains) losses included in net income | 0 | 0 | 0 | -99 |
Net unrealized gains (losses) | 4,448 | -11,997 | 9,968 | -14,057 |
Tax effect | -1,420 | 3,979 | -3,159 | 4,902 |
Unrealized gains (losses), net of tax | 3,028 | -8,018 | 6,809 | -9,155 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | Auction Rate Money Market Preferred and Preferred Stocks [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | 298 | -363 | 298 | 295 |
Reclassification adjustment for net realized (gains) losses included in net income | 0 | 0 | 0 | 0 |
Net unrealized gains (losses) | 298 | -363 | 298 | 295 |
Tax effect | 0 | 0 | 0 | 0 |
Unrealized gains (losses), net of tax | 298 | -363 | 298 | 295 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | All Other AFS Securities [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | 4,150 | -11,634 | 9,670 | -14,253 |
Reclassification adjustment for net realized (gains) losses included in net income | 0 | 0 | 0 | -99 |
Net unrealized gains (losses) | 4,150 | -11,634 | 9,670 | -14,352 |
Tax effect | -1,420 | 3,979 | -3,159 | 4,902 |
Unrealized gains (losses), net of tax | $2,730 | ($7,655) | $6,511 | ($9,450) |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income (Loss) (Reclassification adjustments) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Income before federal income tax expense | $4,257 | $3,856 | $8,126 | $7,519 |
Federal income tax expense | 692 | 643 | 1,252 | 1,219 |
NET INCOME | 3,565 | 3,213 | 6,874 | 6,300 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Holding Gains (Losses) on AFS Securities [Member] | ' | ' | ' | ' |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Net gains (losses) on sale of AFS securities | 0 | 0 | 0 | 99 |
Income before federal income tax expense | 0 | 0 | 0 | 99 |
Federal income tax expense | 0 | 0 | 0 | 34 |
NET INCOME | $0 | $0 | $0 | $65 |
Parent_Company_Only_Financial_2
Parent Company Only Financial Information (Interim Condensed Balance Sheets) (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ' | ' |
AFS securities | $550,518 | $512,062 | ' | ' |
Premises and equipment | 25,701 | 25,719 | ' | ' |
Other assets | 16,267 | 20,605 | ' | ' |
TOTAL ASSETS | 1,522,135 | 1,493,137 | ' | ' |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' | ' | ' |
Shareholders' equity | 171,099 | 160,609 | 159,288 | 164,489 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,522,135 | 1,493,137 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Cash on deposit at subsidiary Bank | 961 | 529 | ' | ' |
AFS securities | 3,522 | 3,542 | ' | ' |
Investments in subsidiaries | 121,714 | 110,192 | ' | ' |
Premises and equipment | 1,954 | 2,013 | ' | ' |
Other assets | 54,274 | 54,223 | ' | ' |
TOTAL ASSETS | 182,425 | 170,499 | ' | ' |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' | ' | ' |
Other liabilities | 11,326 | 9,890 | ' | ' |
Shareholders' equity | 171,099 | 160,609 | ' | ' |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $182,425 | $170,499 | ' | ' |
Parent_Company_Only_Financial_3
Parent Company Only Financial Information (Interim Condensed Statements of Income) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Expenses | ' | ' | ' | ' |
Compensation and benefits | $5,385 | $5,236 | $10,871 | $10,681 |
Occupancy and equipment | 676 | 641 | 1,418 | 1,306 |
Audit and related fees | 182 | 162 | 320 | 301 |
Other | 2,020 | 2,255 | 4,010 | 4,147 |
Federal income tax benefit | -692 | -643 | -1,252 | -1,219 |
NET INCOME | 3,565 | 3,213 | 6,874 | 6,300 |
Parent Company [Member] | ' | ' | ' | ' |
Income | ' | ' | ' | ' |
Dividends from subsidiaries | 1,500 | 1,500 | 3,000 | 3,000 |
Interest income | 39 | 41 | 78 | 84 |
Management fee and other | 722 | 559 | 1,228 | 1,067 |
Total income | 2,261 | 2,100 | 4,306 | 4,151 |
Expenses | ' | ' | ' | ' |
Compensation and benefits | 772 | 669 | 1,604 | 1,381 |
Occupancy and equipment | 107 | 119 | 221 | 230 |
Audit and related fees | 98 | 93 | 169 | 158 |
Other | 298 | 297 | 566 | 501 |
Total expenses | 1,275 | 1,178 | 2,560 | 2,270 |
Income before income tax benefit and equity in undistributed earnings of subsidiaries | 986 | 922 | 1,746 | 1,881 |
Federal income tax benefit | 178 | 199 | 432 | 388 |
Income before equity in undistributed earnings of subsidiaries | 1,164 | 1,121 | 2,178 | 2,269 |
Undistributed earnings of subsidiaries | 2,401 | 2,092 | 4,696 | 4,031 |
NET INCOME | $3,565 | $3,213 | $6,874 | $6,300 |
Parent_Company_Only_Financial_4
Parent Company Only Financial Information (Interim Condensed Statements of Cash Flows) (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Operating activities | ' | ' |
Net income | $6,874 | $6,300 |
Adjustments to reconcile net income to cash provided by operations | ' | ' |
Share-based payment awards | 237 | 258 |
Depreciation | 1,242 | 1,249 |
Net amortization of AFS securities | 920 | 1,131 |
Changes in operating assets and liabilities which used cash | ' | ' |
Other assets | -250 | 914 |
Accrued interest and other liabilities | 1,215 | 761 |
Net cash provided by (used in) operating activities | 11,002 | 14,594 |
Investing activities | ' | ' |
Purchases of equipment and premises | -1,224 | -1,314 |
Net cash provided by (used in) investing activities | -39,043 | -40,760 |
Financing activities | ' | ' |
Net increase (decrease) in other borrowed funds | 131 | 21,459 |
Cash dividends paid on common stock | -3,394 | -3,224 |
Proceeds from the issuance of common stock | 1,778 | 1,900 |
Common stock repurchased | -1,648 | -1,114 |
Common stock purchased for deferred compensation obligations | -166 | -166 |
Net cash provided by (used in) financing activities | 13,863 | 22,612 |
Increase (decrease) in cash and cash equivalents | -14,178 | -3,554 |
Cash and cash equivalents at beginning of period | 41,558 | 24,920 |
Cash and cash equivalents at end of period | 27,380 | 21,366 |
Parent Company [Member] | ' | ' |
Operating activities | ' | ' |
Net income | 6,874 | 6,300 |
Adjustments to reconcile net income to cash provided by operations | ' | ' |
Undistributed earnings of subsidiaries | -4,696 | -4,031 |
Undistributed earnings of equity securities without readily determinable fair values | -10 | 125 |
Share-based payment awards | 237 | 258 |
Depreciation | 65 | 77 |
Net amortization of AFS securities | 2 | 1 |
Changes in operating assets and liabilities which used cash | ' | ' |
Other assets | -40 | -26 |
Accrued interest and other liabilities | 836 | 211 |
Net cash provided by (used in) operating activities | 3,268 | 2,915 |
Investing activities | ' | ' |
Maturities, calls, and sales of AFS securities | 0 | 395 |
Purchases of equipment and premises | -6 | -127 |
Advances to subsidiaries, net of repayments | 0 | 101 |
Net cash provided by (used in) investing activities | -6 | 369 |
Financing activities | ' | ' |
Net increase (decrease) in other borrowed funds | 600 | -200 |
Cash dividends paid on common stock | -3,394 | -3,224 |
Proceeds from the issuance of common stock | 1,778 | 1,900 |
Common stock repurchased | -1,648 | -1,114 |
Common stock purchased for deferred compensation obligations | -166 | -166 |
Net cash provided by (used in) financing activities | -2,830 | -2,804 |
Increase (decrease) in cash and cash equivalents | 432 | 480 |
Cash and cash equivalents at beginning of period | 529 | 332 |
Cash and cash equivalents at end of period | $961 | $812 |
Operating_Segments_Narrative_D
Operating Segments (Narrative) (Details) | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting [Abstract] | ' | ' |
Percentage of reportable segments total assets and operating results, or more | 90.00% | 90.00% |