Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 27, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ISABELLA BANK CORP | |
Entity Central Index Key | 842,517 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 7,786,962 | |
Entity Filer Category | Accelerated Filer |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Cash and cash equivalents | ||
Cash and demand deposits due from banks | $ 20,955 | $ 18,058 |
Interest bearing balances due from banks | 8,686 | 1,268 |
Total cash and cash equivalents | 29,641 | 19,326 |
Certificates of deposit held in other financial institutions | 340 | 580 |
AFS securities (amortized cost of $591,841 in 2015 and $561,893 in 2014) | 595,318 | 567,534 |
Mortgage loans AFS | 1,029 | 901 |
Loans | ||
Commercial | 430,981 | 431,961 |
Agricultural | 113,134 | 104,721 |
Residential real estate | 250,208 | 264,595 |
Consumer | 34,279 | 32,305 |
Gross loans | 828,602 | 833,582 |
Less allowance for loan losses | 9,000 | 10,100 |
Net loans | 819,602 | 823,482 |
Premises and equipment | 26,155 | 25,881 |
Corporate owned life insurance | 26,034 | 25,152 |
Accrued interest receivable | 5,469 | 5,851 |
Equity securities without readily determinable fair values | 21,142 | 20,076 |
Goodwill and other intangible assets | 46,052 | 46,128 |
Other assets | 16,193 | 14,632 |
TOTAL ASSETS | 1,586,975 | 1,549,543 |
Deposits | ||
Noninterest bearing | 182,259 | 181,826 |
NOW accounts | 193,680 | 190,984 |
Certificates of deposit under $100 and other savings | 468,773 | 456,774 |
Certificates of deposit over $100 | 245,757 | 244,900 |
Total deposits | 1,090,469 | 1,074,484 |
Borrowed funds | 307,599 | 289,709 |
Accrued interest payable and other liabilities | 10,882 | 10,756 |
Total liabilities | 1,408,950 | 1,374,949 |
Shareholders' equity | ||
Common stock — no par value 15,000,000 shares authorized; issued and outstanding 7,797,188 shares (including 14,215 shares held in the Rabbi Trust) in 2015 and 7,776,274 shares (including 13,934 shares held in the Rabbi Trust) in 2014 | 139,201 | 138,755 |
Shares to be issued for deferred compensation obligations | 4,378 | 4,242 |
Retained earnings | 36,317 | 32,103 |
Accumulated other comprehensive income | (1,871) | (506) |
Total shareholders' equity | 178,025 | 174,594 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,586,975 | $ 1,549,543 |
Interim Condensed Consolidated3
Interim Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Available-for-sale securities, amortized cost | $ 591,841 | $ 561,893 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 7,797,188 | 7,776,274 |
Common stock, shares outstanding | 7,797,188 | 7,776,274 |
Common stock, shares held in Rabbi Trust | 14,215 | 13,934 |
Interim Condensed Consolidated4
Interim Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest income | ||||
Loans, including fees | $ 9,909 | $ 9,799 | $ 19,593 | $ 19,550 |
AFS securities | ||||
Taxable | 2,238 | 1,993 | 4,345 | 3,991 |
Nontaxable | 1,507 | 1,486 | 2,989 | 2,943 |
Federal funds sold and other | 139 | 113 | 278 | 271 |
Total interest income | 13,793 | 13,391 | 27,205 | 26,755 |
Interest expense | ||||
Deposits | 1,459 | 1,589 | 2,925 | 3,205 |
Borrowings | 1,059 | 879 | 2,081 | 1,763 |
Total interest expense | 2,518 | 2,468 | 5,006 | 4,968 |
Net interest income | 11,275 | 10,923 | 22,199 | 21,787 |
Provision for loan losses | (535) | (200) | (1,261) | (442) |
Net interest income after provision for loan losses | 11,810 | 11,123 | 23,460 | 22,229 |
Noninterest income | ||||
Service charges and fees | 1,393 | 1,360 | 2,556 | 2,754 |
Net gain on sale of mortgage loans | 166 | 151 | 315 | 266 |
Earnings on corporate owned life insurance policies | 195 | 190 | 382 | 374 |
Other | 875 | 733 | 1,504 | 1,289 |
Total noninterest income | 2,629 | 2,434 | 4,757 | 4,683 |
Noninterest expenses | ||||
Compensation and benefits | 5,374 | 5,385 | 10,799 | 10,871 |
Furniture and equipment | 1,426 | 1,219 | 2,740 | 2,487 |
Occupancy | 672 | 676 | 1,393 | 1,418 |
Other | 1,892 | 2,020 | 3,766 | 4,010 |
Total noninterest expenses | 9,364 | 9,300 | 18,698 | 18,786 |
Income before federal income tax expense | 5,075 | 4,257 | 9,519 | 8,126 |
Federal income tax expense | 977 | 692 | 1,748 | 1,252 |
NET INCOME | $ 4,098 | $ 3,565 | $ 7,771 | $ 6,874 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.53 | $ 0.46 | $ 1 | $ 0.89 |
Diluted (in dollars per share) | 0.52 | 0.45 | 0.98 | 0.87 |
Cash dividends per basic share (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.46 | $ 0.44 |
Interim Condensed Consolidated5
Interim Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 4,098 | $ 3,565 | $ 7,771 | $ 6,874 | |
Unrealized gains (losses) on AFS securities | |||||
Unrealized gains (losses) on AFS securities arising during the period | 4,448 | (2,164) | 9,968 | ||
Tax effect | [1] | (1,420) | 799 | (3,159) | |
Other comprehensive income (loss), net of tax | (4,355) | 3,028 | (1,365) | 6,809 | |
Comprehensive income (loss) | $ (257) | $ 6,593 | $ 6,406 | $ 13,683 | |
[1] | See “Note 11 – Accumulated Other Comprehensive Income (Loss)” for tax effect reconciliation. |
Interim Condensed Consolidated6
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Shares to be Issued for Deferred Compensation Obligations | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
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 | ||||
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 | ||||
Beginning balances at Dec. 31, 2014 | $ 174,594 | $ 138,755 | 4,242 | 32,103 | (506) |
Beginning balances, shares at Dec. 31, 2014 | 7,776,274 | 7,776,274 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Comprehensive income (loss) | $ 6,406 | 7,771 | (1,365) | ||
Issuance of common stock | 2,192 | $ 2,192 | |||
Issuance of common stock, shares | 94,807 | ||||
Common stock issued for deferred compensation obligations | 0 | $ 0 | 0 | ||
Common stock issued for deferred compensation obligations, shares | 0 | ||||
Common stock transferred from the Rabbi Trust to satisfy deferred compensation obligations | 0 | $ 123 | (123) | ||
Share based payment awards under equity compensation plan | 259 | 259 | |||
Common stock purchased for deferred compensation obligations | (165) | (165) | |||
Common stock repurchased pursuant to publicly announced repurchase plan | (1,704) | $ (1,704) | |||
Common stock repurchased pursuant to publicly announced repurchase plan, shares | (73,893) | ||||
Cash dividends | (3,557) | (3,557) | |||
Ending balances at Jun. 30, 2015 | $ 178,025 | $ 139,201 | $ 4,378 | $ 36,317 | $ (1,871) |
Ending balances, shares at Jun. 30, 2015 | 7,797,188 | 7,797,188 |
Interim Condensed Consolidated7
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per share (in dollars per share) | $ 0.23 | $ 0.22 | $ 0.46 | $ 0.44 |
Interim Condensed Consolidated8
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net income | $ 7,771 | $ 6,874 |
Reconciliation of net income to net cash provided by operating activities: | ||
Provision for loan losses | (1,261) | (442) |
Impairment of foreclosed assets | 22 | 63 |
Depreciation | 1,272 | 1,242 |
Amortization of OMSR | 186 | 139 |
Amortization of acquisition intangibles | 76 | 95 |
Net amortization of AFS securities | 986 | 920 |
Net unrealized (gains) losses on trading securities | 0 | 5 |
Net gain on sale of mortgage loans | (315) | (266) |
Increase in cash value of corporate owned life insurance policies | (382) | (374) |
Share-based payment awards under equity compensation plan | 259 | 237 |
Origination of loans held for sale | (25,231) | (12,878) |
Proceeds from loan sales | 25,418 | 13,908 |
Net changes in operating assets and liabilities which provided (used) cash: | ||
Accrued interest receivable | 382 | (6) |
Other assets | (2,026) | 270 |
Accrued interest payable and other liabilities | 126 | 1,215 |
Net cash provided by (used in) operating activities | 7,283 | 11,002 |
INVESTING ACTIVITIES | ||
Net change in certificates of deposit held in other financial institutions | 240 | 0 |
Activity in AFS securities | ||
Maturities and calls | 42,200 | 32,354 |
Purchases | (73,134) | (61,762) |
Net loan principal (originations) collections | 4,332 | (9,551) |
Proceeds from sales of foreclosed assets | 799 | 1,140 |
Purchases of premises and equipment | (1,546) | (1,224) |
Purchases of corporate owned life insurance policies | (500) | 0 |
Net cash provided by (used in) investing activities | (27,609) | (39,043) |
FINANCING ACTIVITIES | ||
Net increase (decrease) in deposits | 15,985 | 17,162 |
Increase in other borrowed funds | 17,890 | 131 |
Cash dividends paid on common stock | (3,557) | (3,394) |
Proceeds from issuance of common stock | 2,192 | 1,778 |
Common stock repurchased | (1,704) | (1,648) |
Common stock purchased for deferred compensation obligations | (165) | (166) |
Net cash provided by (used in) financing activities | 30,641 | 13,863 |
Increase (decrease) in cash and cash equivalents | 10,315 | (14,178) |
Cash and cash equivalents at beginning of period | 19,326 | 41,558 |
Cash and cash equivalents at end of period | 29,641 | 27,380 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ||
Interest paid | 5,042 | 5,074 |
Federal income taxes paid | 2,143 | 715 |
SUPPLEMENTAL NONCASH INFORMATION: | ||
Transfers of loans to foreclosed assets | $ 809 | $ 923 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . 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, 2014 . 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, 2014 . |
Computation of Earnings Per Com
Computation of Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2015 | |
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 2015 2014 2015 2014 Average number of common shares outstanding for basic calculation 7,779,365 7,722,367 7,776,413 7,721,814 Average potential effect of common shares in the Directors Plan (1) 176,690 168,715 176,845 170,984 Average number of common shares outstanding used to calculate diluted earnings per common share 7,956,055 7,891,082 7,953,258 7,892,798 Net income $ 4,098 $ 3,565 $ 7,771 $ 6,874 Earnings per common share Basic $ 0.53 $ 0.46 $ 1.00 $ 0.89 Diluted $ 0.52 $ 0.45 $ 0.98 $ 0.87 (1) Exclusive of shares held in the Rabbi Trust |
Pending Accounting Standards Up
Pending Accounting Standards Updates | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Pending Accounting Standards Updates | Accounting Standards Updates Recently Adopted Accounting Standards Updates 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 provide clarification as to 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. Specifically, the update defined physical possession to appropriately derecognize the loan and recognize the real estate as OREO. The adoption of this ASU did not have a significant impact on our operations or financial statement disclosures. 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 changed 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 resulted in secured borrowing accounting for the repurchase agreement. The adoption of this ASU did not have a significant impact on our operations or financial statement disclosures. Pending Accounting Standards Updates ASU No. 2015-01: “Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items ” In January 2015, ASU No. 2015-01 amended ASC Topic 225, “Income Statement” to eliminate the concept of extraordinary items. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2015 and is not expected to have a significant impact on our operations. ASU No. 2015-02: “Consolidation (Topic 810): Amendments to the Consolidation Analysis ” In February 2015, ASU No. 2015-02 amended ASC Topic 810, “Consolidation” to provide consolidation guidance on legal entities when the reporting entity’s contractual rights do not give it the ability to act primarily on its own behalf, the reporting entity does not hold a majority of the legal entity’s voting rights, or the reporting entity is not exposed to a majority of the legal entity’s economic benefits or obligations. The amendments in this update affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: 1. Modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities. 2. Eliminate the presumption that a general partner should consolidate a limited partnership. 3. Affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. 4. Provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The amendments of this update affect limited partnerships and similar legal entities including fees paid and fee arrangements on the primary beneficiary. The following three main provisions affect limited partnerships and similar legal entities: 1. There is an additional requirement that limited partnerships and similar legal entities must meet to qualify as voting interest entities. A limited partnership must provide partners with either substantive kick-out rights or substantive participating rights over the general partner to meet this requirement. 2. The specialized consolidation model and guidance for limited partnerships and similar legal entities have been eliminated. There is no longer a presumption that a general partner should consolidate a limited partnership. 3. For limited partnerships and similar legal entities that qualify as voting interest entities, a limited partner with a controlling financial interest should consolidate a limited partnership. A controlling financial interest may be achieved through holding a limited partner interest that provides substantive kick-out rights. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2015 and is not expected to have a significant impact on our operations. ASU No. 2015-5: “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement“ In April 2015, ASU No. 2015-05 amended ASC Topic 350, “Goodwill and Other” to provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The guidance will not change GAAP for a customer’s accounting for service contracts. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2015 and is not expected to have a significant impact on our operations. ASU No. 2015-7: “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)“ In May 2015, ASU No. 2015-07 amended ASC Topic 820, “Fair Value Measurement” to remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The amendments also remove the requirement to make certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practical expedient. Rather, those disclosures are limited to investments for which the entity has elected to measure the fair value using that practical expedient. The new authoritative guidance is effective for interim and annual periods beginning after December 15, 2015 and is not expected to have a significant impact on our operations. |
AFS Securities
AFS Securities | 6 Months Ended |
Jun. 30, 2015 | |
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: June 30, 2015 Amortized Gross Gross Fair Government sponsored enterprises $ 24,520 $ 8 $ 325 $ 24,203 States and political subdivisions 212,152 5,550 1,055 216,647 Auction rate money market preferred 3,200 — 481 2,719 Preferred stocks 3,800 — 570 3,230 Mortgage-backed securities 210,615 1,298 1,719 210,194 Collateralized mortgage obligations 137,554 1,692 921 138,325 Total $ 591,841 $ 8,548 $ 5,071 $ 595,318 December 31, 2014 Amortized Gross Gross Fair Government sponsored enterprises $ 24,597 $ 10 $ 471 $ 24,136 States and political subdivisions 209,153 6,986 794 215,345 Auction rate money market preferred 3,200 — 581 2,619 Preferred stocks 6,800 31 691 6,140 Mortgage-backed securities 165,888 2,042 1,004 166,926 Collateralized mortgage obligations 152,255 1,533 1,420 152,368 Total $ 561,893 $ 10,602 $ 4,961 $ 567,534 The amortized cost and fair value of AFS securities by contractual maturity at June 30, 2015 are as follows: Maturing Securities with Variable Monthly Payments or Noncontractual Maturities Due in After One After Five After Total Government sponsored enterprises $ — $ 24,068 $ 452 $ — $ — $ 24,520 States and political subdivisions 16,230 64,293 89,386 42,243 — 212,152 Auction rate money market preferred — — — — 3,200 3,200 Preferred stocks — — — — 3,800 3,800 Mortgage-backed securities — — — — 210,615 210,615 Collateralized mortgage obligations — — — — 137,554 137,554 Total amortized cost $ 16,230 $ 88,361 $ 89,838 $ 42,243 $ 355,169 $ 591,841 Fair value $ 16,346 $ 90,400 $ 91,896 $ 42,208 $ 354,468 $ 595,318 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. Information pertaining to AFS securities with gross unrealized losses at June 30, 2015 and December 31, 2014 , aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: June 30, 2015 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ — $ — $ 325 $ 23,671 $ 325 States and political subdivisions 494 26,761 561 3,259 1,055 Auction rate money market preferred — — 481 2,719 481 Preferred stocks — — 570 3,230 570 Mortgage-backed securities 740 91,235 979 40,154 1,719 Collateralized mortgage obligations 182 45,121 739 28,981 921 Total $ 1,416 $ 163,117 $ 3,655 $ 102,014 $ 5,071 Number of securities in an unrealized loss position: 103 28 131 December 31, 2014 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ — $ — $ 471 $ 23,525 $ 471 States and political subdivisions 48 5,323 746 17,416 794 Auction rate money market preferred — — 581 2,619 581 Preferred stocks — — 691 3,109 691 Mortgage-backed securities 5 9,456 999 52,407 1,004 Collateralized mortgage obligations 105 29,435 1,315 39,540 1,420 Total $ 158 $ 44,214 $ 4,803 $ 138,616 $ 4,961 Number of securities in an unrealized loss position: 22 72 94 As of June 30, 2015 and December 31, 2014 , we conducted an analysis to determine whether any AFS 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 any AFS securities in an unrealized loss position before recovery of their cost basis, we do not believe that the values of any AFS securities were other-than-temporarily impaired as of June 30, 2015 , or December 31, 2014 . |
Loans and ALLL
Loans and ALLL | 6 Months Ended |
Jun. 30, 2015 | |
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. Upon transferring the loans to nonaccrual status, we perform an evaluation to determine the net realizable value of the underlying collateral. This evaluation is used to help determine if any charge-offs are necessary. 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 status 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 may be 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 direct credit exposure to any one borrower to $15,000 . Borrowers with direct 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 commonly require loan-to-value limits of 80% or less. 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 to Freddie Mac 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. • Evaluation of 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. • Ensuring all debt servicing does not exceed 36% of income. • Verification of 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 Executive 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 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. 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. 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, 2015 Commercial Agricultural Residential Real Estate Consumer Unallocated Total April 1, 2015 $ 3,810 $ 206 $ 3,729 $ 711 $ 1,144 $ 9,600 Charge-offs (11 ) — (205 ) (80 ) — (296 ) Recoveries 106 — 86 39 — 231 Provision for loan losses (422 ) 157 (96 ) (79 ) (95 ) (535 ) June 30, 2015 $ 3,483 $ 363 $ 3,514 $ 591 $ 1,049 $ 9,000 Allowance for Loan Losses Six Months Ended June 30, 2015 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2015 $ 3,823 $ 216 $ 4,238 $ 645 $ 1,178 $ 10,100 Charge-offs (28 ) — (255 ) (173 ) — (456 ) Recoveries 319 72 119 107 — 617 Provision for loan losses (631 ) 75 (588 ) 12 (129 ) (1,261 ) June 30, 2015 $ 3,483 $ 363 $ 3,514 $ 591 $ 1,049 $ 9,000 Allowance for Loan Losses and Recorded Investment in Loans June 30, 2015 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 1,295 $ — $ 1,906 $ 1 $ — $ 3,202 Collectively evaluated for impairment 2,188 363 1,608 590 1,049 5,798 Total $ 3,483 $ 363 $ 3,514 $ 591 $ 1,049 $ 9,000 Loans Individually evaluated for impairment $ 9,050 $ 2,312 $ 10,313 $ 41 $ 21,716 Collectively evaluated for impairment 421,931 110,822 239,895 34,238 806,886 Total $ 430,981 $ 113,134 $ 250,208 $ 34,279 $ 828,602 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 Charge-offs (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 Charge-offs (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 December 31, 2014 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 1,283 $ — $ 2,143 $ 1 $ — $ 3,427 Collectively evaluated for impairment 2,540 216 2,095 644 1,178 6,673 Total $ 3,823 $ 216 $ 4,238 $ 645 $ 1,178 $ 10,100 Loans Individually evaluated for impairment $ 12,029 $ 1,595 $ 12,160 $ 64 $ 25,848 Collectively evaluated for impairment 419,932 103,126 252,435 32,241 807,734 Total $ 431,961 $ 104,721 $ 264,595 $ 32,305 $ 833,582 The following table displays the credit quality indicators for commercial and agricultural credit exposures based on internally assigned credit risk ratings as of: June 30, 2015 Commercial Agricultural Real Estate Other Total Real Estate Other Total Rating 1 - Excellent $ — $ 492 $ 492 $ — $ — $ — 2 - High quality 6,089 8,599 14,688 4,148 1,436 5,584 3 - High satisfactory 95,744 45,705 141,449 28,296 12,807 41,103 4 - Low satisfactory 197,605 57,353 254,958 36,822 23,792 60,614 5 - Special mention 7,101 808 7,909 2,188 1,278 3,466 6 - Substandard 10,278 280 10,558 1,801 292 2,093 7 - Vulnerable 927 927 274 — 274 8 - Doubtful — — — — — — Total $ 317,744 $ 113,237 $ 430,981 $ 73,529 $ 39,605 $ 113,134 December 31, 2014 Commercial Agricultural Real Estate Other Total Real Estate Other Total Rating 1 - Excellent $ — $ 492 $ 492 $ — $ — $ — 2 - High quality 13,620 14,423 28,043 5,806 3,582 9,388 3 - High satisfactory 94,556 51,230 145,786 28,715 12,170 40,885 4 - Low satisfactory 184,000 49,869 233,869 33,361 17,560 50,921 5 - Special mention 8,456 1,322 9,778 1,607 65 1,672 6 - Substandard 11,055 123 11,178 1,602 147 1,749 7 - Vulnerable 2,687 116 2,803 106 — 106 8 - Doubtful — 12 12 — — — Total $ 314,374 $ 117,587 $ 431,961 $ 71,197 $ 33,524 $ 104,721 Internally assigned credit 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 credit 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 status. 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: June 30, 2015 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 696 $ 25 $ — $ 927 $ 1,648 $ 316,096 $ 317,744 Commercial other 133 6 — — 139 113,098 113,237 Total commercial 829 31 — 927 1,787 429,194 430,981 Agricultural Agricultural real estate 21 138 — 274 433 73,096 73,529 Agricultural other 187 — — — 187 39,418 39,605 Total agricultural 208 138 — 274 620 112,514 113,134 Residential real estate Senior liens 2,156 335 19 329 2,839 198,074 200,913 Junior liens 15 55 — — 70 10,059 10,129 Home equity lines of credit 86 — — — 86 39,080 39,166 Total residential real estate 2,257 390 19 329 2,995 247,213 250,208 Consumer Secured 96 22 — — 118 30,141 30,259 Unsecured 8 — — — 8 4,012 4,020 Total consumer 104 22 — — 126 34,153 34,279 Total $ 3,398 $ 581 $ 19 $ 1,530 $ 5,528 $ 823,074 $ 828,602 December 31, 2014 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 1,155 $ 282 $ — $ 2,764 $ 4,201 $ 310,173 $ 314,374 Commercial other 153 24 2 116 295 117,292 117,587 Total commercial 1,308 306 2 2,880 4,496 427,465 431,961 Agricultural Agricultural real estate 101 — — 106 207 70,990 71,197 Agricultural other 102 — — — 102 33,422 33,524 Total agricultural 203 — — 106 309 104,412 104,721 Residential real estate Senior liens 1,821 425 146 668 3,060 210,138 213,198 Junior liens 235 18 — 130 383 10,750 11,133 Home equity lines of credit 468 20 — 250 738 39,526 40,264 Total residential real estate 2,524 463 146 1,048 4,181 260,414 264,595 Consumer Secured 107 2 — 10 119 28,229 28,348 Unsecured 19 — — — 19 3,938 3,957 Total consumer 126 2 — 10 138 32,167 32,305 Total $ 4,161 $ 771 $ 148 $ 4,044 $ 9,124 $ 824,458 $ 833,582 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 unpaid principal 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: June 30, 2015 December 31, 2014 Outstanding Balance Unpaid Principal Balance Valuation Allowance Outstanding Balance Unpaid Principal Balance Valuation Allowance Impaired loans with a valuation allowance Commercial real estate $ 6,661 $ 6,780 $ 1,292 $ 7,115 $ 7,234 $ 1,279 Commercial other 560 560 3 609 828 4 Agricultural real estate — — — — — — Residential real estate senior liens 10,033 11,018 1,878 11,645 12,782 2,015 Residential real estate junior liens 141 151 28 265 275 53 Home equity lines of credit — — — 250 650 75 Consumer secured 41 41 1 54 54 1 Total impaired loans with a valuation allowance 17,436 18,550 3,202 19,938 21,823 3,427 Impaired loans without a valuation allowance Commercial real estate 1,765 1,898 4,116 4,462 Commercial other 64 75 189 212 Agricultural real estate 1,657 1,657 1,529 1,529 Agricultural other 655 655 66 186 Home equity lines of credit 139 439 — — Consumer secured — — 10 10 Total impaired loans without a valuation allowance 4,280 4,724 5,910 6,399 Impaired loans Commercial 9,050 9,313 1,295 12,029 12,736 1,283 Agricultural 2,312 2,312 — 1,595 1,715 — Residential real estate 10,313 11,608 1,906 12,160 13,707 2,143 Consumer 41 41 1 64 64 1 Total impaired loans $ 21,716 $ 23,274 $ 3,202 $ 25,848 $ 28,222 $ 3,427 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 Average Outstanding Balance Interest Income Recognized Average Outstanding Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 7,052 $ 92 $ 7,163 $ 183 Commercial other 569 9 581 19 Agricultural real estate 44 — 44 1 Residential real estate senior liens 10,805 99 11,208 217 Residential real estate junior liens 196 12 227 14 Home equity lines of credit — — 63 — Consumer secured 46 1 49 2 Total impaired loans with a valuation allowance 18,712 213 19,335 436 Impaired loans without a valuation allowance Commercial real estate 2,230 74 2,818 135 Commercial other 68 2 99 5 Agricultural real estate 1,545 20 1,513 41 Agricultural other 351 7 204 8 Home equity lines of credit 190 4 155 10 Consumer secured — — 3 — Total impaired loans without a valuation allowance 4,384 107 4,792 199 Impaired loans Commercial 9,919 177 10,661 342 Agricultural 1,940 27 1,761 50 Residential real estate 11,191 115 11,653 241 Consumer 46 1 52 2 Total impaired loans $ 23,096 $ 320 $ 24,127 $ 635 Three Months Ended Six Months Ended 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 — 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 As of June 30, 2015 and December 31, 2014 , we had committed to advance $19 and $0 , 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 loans with similar risk characteristics. 3. Forgiving principal. 4. Forgiving accrued interest. To determine if a borrower is experiencing financial difficulties, factors we consider include: 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 for the: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 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 $ 71 $ 71 5 $ 585 $ 585 Agricultural other 7 770 770 7 770 770 Residential real estate Senior liens 2 210 210 4 448 448 Junior liens 1 30 30 1 30 30 Home equity lines of credit — — — 1 94 94 Total residential real estate 3 240 240 6 572 572 Consumer unsecured — — — — — — Total 11 $ 1,081 $ 1,081 18 $ 1,927 $ 1,927 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 The following tables summarize concessions we granted to borrowers in financial difficulty for the: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 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 $ 71 — $ — 3 $ 254 2 $ 331 Agricultural other 6 724 1 46 6 724 1 46 Residential real estate Senior liens — — 2 210 1 50 3 398 Junior liens — — 1 30 — — 1 30 Home equity lines of credit — — — — — — 1 94 Total residential real estate — — 3 240 1 50 5 522 Consumer unsecured — — — — — — — — Total 7 $ 795 4 $ 286 10 $ 1,028 8 $ 899 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 We did not restructure any loans by forgiving principal or accrued interest in the three and six month periods ended June 30, 2015 or 2014 . 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. Following is a summary of loans that defaulted in the three and six month periods ended June 30, 2015 , which were modified within 12 months prior to the default date. Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Number of Loans Pre- Charge-Off Post- Number of Loans Pre- Charge-Off Post- Residential real estate junior liens 1 $ 39 $ 39 $ — 1 $ 39 $ 39 $ — We had no loans that defaulted in the three and six month periods ended June 30, 2014 , which were modified within 12 months prior to the default date. The following is a summary of TDR loan balances as of: June 30, 2015 December 31, 2014 TDRs $ 20,458 $ 23,341 The following is a summary of foreclosed assets as of: June 30, 2015 December 31, 2014 Consumer mortgage loans collateralized by residential real estate foreclosed as a result of obtaining physical possession (1) $ — N/A Foreclosed Assets 873 885 Total $ 873 $ 885 (1) Disclosure requirement from the adoption of ASU No. 2014-04 on January 1, 2015. As such, measurement was applicable for December 31, 2014. Consumer mortgage loans collateralized by residential real estate in the process of foreclosure were $5 as of June 30, 2015 . |
Equity Securities Without Readi
Equity Securities Without Readily Determinable Fair Values | 6 Months Ended |
Jun. 30, 2015 | |
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 FHLB Stock $ 10,800 $ 9,800 Corporate Settlement Solutions, LLC 7,005 6,936 FRB Stock 1,999 1,999 Valley Financial Corporation 1,000 1,000 Other 338 341 Total $ 21,142 $ 20,076 |
Borrowed Funds
Borrowed Funds | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds consist of the following obligations as of: June 30, 2015 December 31, 2014 Amount Rate Amount Rate FHLB advances $ 240,000 1.71 % $ 192,000 2.05 % Securities sold under agreements to repurchase without stated maturity dates 67,599 0.12 % 95,070 0.14 % Securities sold under agreements to repurchase with stated maturity dates — — 439 3.25 % Federal funds purchased — — 2,200 0.50 % Total $ 307,599 1.36 % $ 289,709 1.41 % FHLB advances are collateralized by a blanket lien on all qualified 1-4 family residential real estate loans, specific AFS securities, and FHLB stock. The following table lists the maturity and weighted average interest rates of FHLB advances as of: June 30, 2015 December 31, 2014 Amount Rate Amount Rate Fixed rate due 2015 $ 30,000 0.68 % $ — — Variable rate due 2015 35,000 0.44 % — — Fixed rate due 2016 20,000 1.34 % 42,000 0.72 % Variable rate due 2016 15,000 0.44 % 10,000 2.15 % Fixed rate due 2017 30,000 1.95 % 30,000 1.95 % Fixed rate due 2018 40,000 2.35 % 40,000 2.35 % Fixed rate due 2019 20,000 3.11 % 20,000 3.11 % Fixed rate due 2020 — — 10,000 1.98 % Fixed rate due 2021 40,000 2.19 % 30,000 2.26 % Fixed rate due 2023 10,000 3.90 % 10,000 3.90 % Total $ 240,000 1.71 % $ 192,000 2.05 % Securities sold under agreements to repurchase are classified as secured borrowings and 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 $67,661 and $94,537 at June 30, 2015 and December 31, 2014 , 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, 2015 December 31, 2014 Amount Rate Amount Rate Repurchase agreements due 2015 $ — — $ 439 3.25 % 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 2015 2014 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 $ 67,599 $ 63,294 0.13 % $ 90,813 $ 90,484 0.13 % Federal funds purchased 12,600 5,770 0.52 % 16,500 6,849 0.48 % Six Months Ended June 30 2015 2014 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 $ 84,859 $ 71,129 0.13 % $ 94,741 $ 92,412 0.13 % Federal funds purchased 12,600 5,738 0.50 % 16,500 6,305 0.47 % We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts at: June 30 December 31 Pledged to secure borrowed funds $ 344,764 $ 324,584 Pledged to secure repurchase agreements 67,661 94,537 Pledged for public deposits and for other purposes necessary or required by law 21,278 19,851 Total $ 433,703 $ 438,972 AFS securities pledged to repurchase agreements without stated maturity dates consisted of the following at: June 30 December 31 States and political subdivisions $ 2,041 $ 6,643 Mortgage-backed securities 24,146 29,655 Collateralized mortgage obligations 41,474 58,239 Total $ 67,661 $ 94,537 AFS securities pledged to repurchase agreements are monitored to ensure the appropriate level is collateralized. In the event of maturities, calls, significant principal repayments, or significant decline in market values, we have adequate levels of available AFS securities to pledge to satisfy required collateral. As of June 30, 2015 , we had the ability to borrow up to an additional $104,173 , 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, 2015 | |
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 2015 2014 2015 2014 Marketing and community relations $ 228 $ 211 $ 483 $ 454 FDIC insurance premiums 203 221 415 423 Director fees 206 183 404 378 Audit and related fees 188 182 346 320 Education and travel 129 143 221 264 Printing and supplies 96 87 198 189 Postage and freight 92 90 190 198 Legal fees 93 106 152 160 Loan underwriting fees 62 92 150 187 Consulting fees 79 76 142 167 All other 516 629 1,065 1,270 Total other $ 1,892 $ 2,020 $ 3,766 $ 4,010 |
Federal Income Taxes
Federal Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
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 2015 2014 2015 2014 Income taxes at 34% statutory rate $ 1,725 $ 1,448 $ 3,236 $ 2,763 Effect of nontaxable income Interest income on tax exempt municipal securities (510 ) (503 ) (1,010 ) (997 ) Earnings on corporate owned life insurance policies (66 ) (64 ) (130 ) (127 ) Effect of tax credits (181 ) (191 ) (367 ) (388 ) Other (26 ) (43 ) (52 ) (77 ) Total effect of nontaxable income (783 ) (801 ) (1,559 ) (1,589 ) Effect of nondeductible expenses 35 45 71 78 Federal income tax expense $ 977 $ 692 $ 1,748 $ 1,252 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2015 | |
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 securities : AFS 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 loss 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, 2015 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Real Estate 20% - 30% Equipment 25% - 50% Discounted appraisal value $6,133 Cash crop inventory 40% Other inventory 50% - 75% Accounts receivable 50% Liquor license 75% December 31, 2014 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Real Estate 20% - 25% Equipment 30% - 40% Discounted appraisal value $8,720 Cash crop inventory 40% Other inventory 75% Accounts receivable 50% Liquor license 75% Discount factors with ranges are based on the age of the independent appraisal, broker price opinion, or internal evaluation. 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 and 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 and we account for our investment under the cost method of accounting. 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 2015 and 2014 , 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 classify foreclosed assets as nonrecurring Level 3. The table below lists the quantitative fair value information related to foreclosed assets as of: June 30, 2015 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Discounted appraisal value $ 873 Real Estate 20% - 30% December 31, 2014 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Discounted appraisal value $ 885 Real Estate 20% - 25% 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 2015 and 2014 , there were no impairments recorded on goodwill and other acquisition intangibles. OMSR : OMSR (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, OMSR are adjusted to fair value through a valuation allowance as determined by the model. As such, we classify OMSR subject to nonrecurring fair value adjustments as Level 2. Deposits : The fair value of demand, savings, and money market deposits are equal to 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 were as follows as of: June 30, 2015 Carrying Estimated (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents $ 29,641 $ 29,641 $ 29,641 $ — $ — Certificates of deposit held in other financial institutions 340 339 — 339 — Mortgage loans AFS 1,029 1,046 — 1,046 — Gross loans 828,602 820,828 — — 820,828 Less allowance for loan and lease losses 9,000 9,000 — — 9,000 Net loans 819,602 811,828 — — 811,828 Accrued interest receivable 5,469 5,469 5,469 — — Equity securities without readily determinable fair values (1) 21,142 N/A — — — OMSR 2,492 2,499 — 2,499 — LIABILITIES Deposits without stated maturities 654,044 654,044 654,044 — — Deposits with stated maturities 436,425 436,241 — 436,241 — Borrowed funds 307,599 310,913 — 310,913 — Accrued interest payable 522 522 522 — — December 31, 2014 Carrying Estimated (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents $ 19,326 $ 19,326 $ 19,326 $ — $ — Certificates of deposit held in other financial institutions 580 579 — 579 — Mortgage loans AFS 901 911 — 911 — Gross loans 833,582 827,449 — — 827,449 Less allowance for loan and lease losses 10,100 10,100 — — 10,100 Net loans 823,482 817,349 — — 817,349 Accrued interest receivable 5,851 5,851 5,851 — — Equity securities without readily determinable fair values (1) 20,076 N/A — — — OMSR 2,519 2,554 — 2,554 — LIABILITIES Deposits without stated maturities 634,222 634,222 634,222 — — Deposits with stated maturities 440,262 440,964 — 440,964 — Borrowed funds 289,709 293,401 — 293,401 — Accrued interest payable 558 558 558 — — (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, 2015 December 31, 2014 Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Recurring items AFS securities Government-sponsored enterprises $ 24,203 $ — $ 24,203 $ — $ 24,136 $ — $ 24,136 $ — States and political subdivisions 216,647 — 216,647 — 215,345 — 215,345 — Auction rate money market preferred 2,719 — 2,719 — 2,619 — 2,619 — Preferred stocks 3,230 3,230 — — 6,140 6,140 — — Mortgage-backed securities 210,194 — 210,194 — 166,926 — 166,926 — Collateralized mortgage obligations 138,325 — 138,325 — 152,368 — 152,368 — Total AFS securities 595,318 3,230 592,088 — 567,534 6,140 561,394 — Nonrecurring items Impaired loans (net of the ALLL) 6,133 — — 6,133 8,720 — — 8,720 Foreclosed assets 873 — — 873 885 — — 885 Total $ 602,324 $ 3,230 $ 592,088 $ 7,006 $ 577,139 $ 6,140 $ 561,394 $ 9,605 Percent of assets and liabilities measured at fair value 0.54 % 98.30 % 1.16 % 1.06 % 97.27 % 1.67 % The following table provides a summary of the changes in fair value of assets and liabilities recorded at fair value, for which gains or losses were recognized through earnings on a nonrecurring basis, in the: Three Months Ended Six Months Ended 2015 2014 2015 2014 Nonrecurring items Foreclosed assets $ (22 ) $ (20 ) $ (22 ) $ (63 ) We had no assets or liabilities recorded at fair value with changes in fair value recognized through earnings, on a recurring basis, as of June 30, 2015 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2015 | |
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 2015 2014 Unrealized Defined Total Unrealized Defined Total Balance, April 1 $ 6,292 $ (3,808 ) $ 2,484 $ (426 ) $ (2,134 ) $ (2,560 ) OCI before reclassifications (6,520 ) — (6,520 ) 4,448 — 4,448 Amounts reclassified from AOCI — — — — — — Subtotal (6,520 ) — (6,520 ) 4,448 — 4,448 Tax effect 2,165 — 2,165 (1,420 ) — (1,420 ) OCI, net of tax (4,355 ) — (4,355 ) 3,028 — 3,028 Balance, June 30 $ 1,937 $ (3,808 ) $ (1,871 ) $ 2,602 $ (2,134 ) $ 468 Six Months Ended June 30 2015 2014 Unrealized Defined Total Unrealized Defined Total Balance, January 1 $ 3,302 $ (3,808 ) $ (506 ) $ (4,207 ) $ (2,134 ) $ (6,341 ) OCI before reclassifications (2,164 ) — (2,164 ) 9,968 — 9,968 Amounts reclassified from AOCI — — — — — — Subtotal (2,164 ) — (2,164 ) 9,968 — 9,968 Tax effect 799 — 799 (3,159 ) — (3,159 ) OCI, net of tax (1,365 ) — (1,365 ) 6,809 — 6,809 Balance, June 30 $ 1,937 $ (3,808 ) $ (1,871 ) $ 2,602 $ (2,134 ) $ 468 Included in OCI for the three and six month periods ended June 30, 2015 and 2014 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 2015 2014 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 $ 190 $ (6,710 ) $ (6,520 ) $ 298 $ 4,150 $ 4,448 Tax effect — 2,165 2,165 — (1,420 ) (1,420 ) Unrealized gains (losses), net of tax $ 190 $ (4,545 ) $ (4,355 ) $ 298 $ 2,730 $ 3,028 Six Months Ended June 30 2015 2014 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 $ 190 $ (2,354 ) $ (2,164 ) $ 298 $ 9,670 $ 9,968 Tax effect — 799 799 — (3,159 ) (3,159 ) Unrealized gains (losses), net of tax $ 190 $ (1,555 ) $ (1,365 ) $ 298 $ 6,511 $ 6,809 |
Parent Company Only Financial I
Parent Company Only Financial Information | 6 Months Ended |
Jun. 30, 2015 | |
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 ASSETS Cash on deposit at the Bank $ 3,486 $ 1,035 AFS securities 261 3,294 Investments in subsidiaries 128,865 124,827 Premises and equipment 2,013 1,982 Other assets 52,929 53,228 TOTAL ASSETS $ 187,554 $ 184,366 LIABILITIES AND SHAREHOLDERS’ EQUITY Other liabilities $ 9,529 $ 9,772 Shareholders' equity 178,025 174,594 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 187,554 $ 184,366 Interim Condensed Statements of Income Three Months Ended Six Months Ended 2015 2014 2015 2014 Income Dividends from subsidiaries $ 1,700 $ 1,500 $ 3,300 $ 3,000 Interest income 35 39 71 78 Management fee and other 1,602 722 3,054 1,228 Total income 3,337 2,261 6,425 4,306 Expenses Compensation and benefits 1,240 772 2,430 1,604 Occupancy and equipment 401 107 811 221 Audit and related fees 114 98 215 169 Other 539 298 1,032 566 Total expenses 2,294 1,275 4,488 2,560 Income before income tax benefit and equity in undistributed earnings of subsidiaries 1,043 986 1,937 1,746 Federal income tax benefit 224 178 465 432 Income before equity in undistributed earnings of subsidiaries 1,267 1,164 2,402 2,178 Undistributed earnings of subsidiaries 2,831 2,401 5,369 4,696 Net income $ 4,098 $ 3,565 $ 7,771 $ 6,874 Interim Condensed Statements of Cash Flows Six Months Ended 2015 2014 Operating activities Net income $ 7,771 $ 6,874 Adjustments to reconcile net income to cash provided by operations Undistributed earnings of subsidiaries (5,369 ) (4,696 ) Undistributed earnings of equity securities without readily determinable fair values (65 ) (10 ) Share-based payment awards 259 237 Depreciation 74 65 Net amortization of AFS securities — 2 Changes in operating assets and liabilities which provided (used) cash Other assets 364 (40 ) Accrued interest and other liabilities (33 ) 836 Net cash provided by (used in) operating activities 3,001 3,268 Investing activities Maturities, calls, principal payments, and sales of AFS securities 3,000 — Purchases of premises and equipment (105 ) (6 ) Net cash provided by (used in) investing activities 2,895 (6 ) Financing activities Net increase (decrease) in borrowed funds (211 ) 600 Cash dividends paid on common stock (3,557 ) (3,394 ) Proceeds from the issuance of common stock 2,192 1,778 Common stock repurchased (1,704 ) (1,648 ) Common stock purchased for deferred compensation obligations (165 ) (166 ) Net cash provided by (used in) financing activities (3,445 ) (2,830 ) Increase (decrease) in cash and cash equivalents 2,451 432 Cash and cash equivalents at beginning of period 1,035 529 Cash and cash equivalents at end of period $ 3,486 $ 961 |
Operating Segments
Operating Segments | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and 2014 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, 2015 | |
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, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . 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, 2014 . |
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 | As of June 30, 2015 and December 31, 2014 , we conducted an analysis to determine whether any AFS 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? |
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. Upon transferring the loans to nonaccrual status, we perform an evaluation to determine the net realizable value of the underlying collateral. This evaluation is used to help determine if any charge-offs are necessary. 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 status 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 may be 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. |
Loans Receivable | 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. 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 direct credit exposure to any one borrower to $15,000 . Borrowers with direct 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 commonly require loan-to-value limits of 80% or less. 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 to Freddie Mac 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. • Evaluation of 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. • Ensuring all debt servicing does not exceed 36% of income. • Verification of 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 Executive 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. |
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 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. 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. 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 credit 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 credit 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 status. 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 unpaid principal 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 loans with similar risk characteristics. 3. Forgiving principal. 4. Forgiving accrued interest. To determine if a borrower is experiencing financial difficulties, factors we consider include: 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). |
Computation of Earnings Per C23
Computation of Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 2015 2014 2015 2014 Average number of common shares outstanding for basic calculation 7,779,365 7,722,367 7,776,413 7,721,814 Average potential effect of common shares in the Directors Plan (1) 176,690 168,715 176,845 170,984 Average number of common shares outstanding used to calculate diluted earnings per common share 7,956,055 7,891,082 7,953,258 7,892,798 Net income $ 4,098 $ 3,565 $ 7,771 $ 6,874 Earnings per common share Basic $ 0.53 $ 0.46 $ 1.00 $ 0.89 Diluted $ 0.52 $ 0.45 $ 0.98 $ 0.87 (1) Exclusive of shares held in the |
AFS Securities (Tables)
AFS Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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: June 30, 2015 Amortized Gross Gross Fair Government sponsored enterprises $ 24,520 $ 8 $ 325 $ 24,203 States and political subdivisions 212,152 5,550 1,055 216,647 Auction rate money market preferred 3,200 — 481 2,719 Preferred stocks 3,800 — 570 3,230 Mortgage-backed securities 210,615 1,298 1,719 210,194 Collateralized mortgage obligations 137,554 1,692 921 138,325 Total $ 591,841 $ 8,548 $ 5,071 $ 595,318 December 31, 2014 Amortized Gross Gross Fair Government sponsored enterprises $ 24,597 $ 10 $ 471 $ 24,136 States and political subdivisions 209,153 6,986 794 215,345 Auction rate money market preferred 3,200 — 581 2,619 Preferred stocks 6,800 31 691 6,140 Mortgage-backed securities 165,888 2,042 1,004 166,926 Collateralized mortgage obligations 152,255 1,533 1,420 152,368 Total $ 561,893 $ 10,602 $ 4,961 $ 567,534 |
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, 2015 are as follows: Maturing Securities with Variable Monthly Payments or Noncontractual Maturities Due in After One After Five After Total Government sponsored enterprises $ — $ 24,068 $ 452 $ — $ — $ 24,520 States and political subdivisions 16,230 64,293 89,386 42,243 — 212,152 Auction rate money market preferred — — — — 3,200 3,200 Preferred stocks — — — — 3,800 3,800 Mortgage-backed securities — — — — 210,615 210,615 Collateralized mortgage obligations — — — — 137,554 137,554 Total amortized cost $ 16,230 $ 88,361 $ 89,838 $ 42,243 $ 355,169 $ 591,841 Fair value $ 16,346 $ 90,400 $ 91,896 $ 42,208 $ 354,468 $ 595,318 |
Available-for-sale securities with gross unrealized losses | Information pertaining to AFS securities with gross unrealized losses at June 30, 2015 and December 31, 2014 , aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: June 30, 2015 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ — $ — $ 325 $ 23,671 $ 325 States and political subdivisions 494 26,761 561 3,259 1,055 Auction rate money market preferred — — 481 2,719 481 Preferred stocks — — 570 3,230 570 Mortgage-backed securities 740 91,235 979 40,154 1,719 Collateralized mortgage obligations 182 45,121 739 28,981 921 Total $ 1,416 $ 163,117 $ 3,655 $ 102,014 $ 5,071 Number of securities in an unrealized loss position: 103 28 131 December 31, 2014 Less Than Twelve Months Twelve Months or More Gross Fair Gross Fair Total Government sponsored enterprises $ — $ — $ 471 $ 23,525 $ 471 States and political subdivisions 48 5,323 746 17,416 794 Auction rate money market preferred — — 581 2,619 581 Preferred stocks — — 691 3,109 691 Mortgage-backed securities 5 9,456 999 52,407 1,004 Collateralized mortgage obligations 105 29,435 1,315 39,540 1,420 Total $ 158 $ 44,214 $ 4,803 $ 138,616 $ 4,961 Number of securities in an unrealized loss position: 22 72 94 |
Loans and ALLL (Tables)
Loans and ALLL (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Summary of changes in the ALLL and the recorded investment in loans by segments | 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, 2015 Commercial Agricultural Residential Real Estate Consumer Unallocated Total April 1, 2015 $ 3,810 $ 206 $ 3,729 $ 711 $ 1,144 $ 9,600 Charge-offs (11 ) — (205 ) (80 ) — (296 ) Recoveries 106 — 86 39 — 231 Provision for loan losses (422 ) 157 (96 ) (79 ) (95 ) (535 ) June 30, 2015 $ 3,483 $ 363 $ 3,514 $ 591 $ 1,049 $ 9,000 Allowance for Loan Losses Six Months Ended June 30, 2015 Commercial Agricultural Residential Real Estate Consumer Unallocated Total January 1, 2015 $ 3,823 $ 216 $ 4,238 $ 645 $ 1,178 $ 10,100 Charge-offs (28 ) — (255 ) (173 ) — (456 ) Recoveries 319 72 119 107 — 617 Provision for loan losses (631 ) 75 (588 ) 12 (129 ) (1,261 ) June 30, 2015 $ 3,483 $ 363 $ 3,514 $ 591 $ 1,049 $ 9,000 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 Charge-offs (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 Charge-offs (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 June 30, 2015 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 1,295 $ — $ 1,906 $ 1 $ — $ 3,202 Collectively evaluated for impairment 2,188 363 1,608 590 1,049 5,798 Total $ 3,483 $ 363 $ 3,514 $ 591 $ 1,049 $ 9,000 Loans Individually evaluated for impairment $ 9,050 $ 2,312 $ 10,313 $ 41 $ 21,716 Collectively evaluated for impairment 421,931 110,822 239,895 34,238 806,886 Total $ 430,981 $ 113,134 $ 250,208 $ 34,279 $ 828,602 Allowance for Loan Losses and Recorded Investment in Loans December 31, 2014 Commercial Agricultural Residential Real Estate Consumer Unallocated Total ALLL Individually evaluated for impairment $ 1,283 $ — $ 2,143 $ 1 $ — $ 3,427 Collectively evaluated for impairment 2,540 216 2,095 644 1,178 6,673 Total $ 3,823 $ 216 $ 4,238 $ 645 $ 1,178 $ 10,100 Loans Individually evaluated for impairment $ 12,029 $ 1,595 $ 12,160 $ 64 $ 25,848 Collectively evaluated for impairment 419,932 103,126 252,435 32,241 807,734 Total $ 431,961 $ 104,721 $ 264,595 $ 32,305 $ 833,582 |
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 risk ratings as of: June 30, 2015 Commercial Agricultural Real Estate Other Total Real Estate Other Total Rating 1 - Excellent $ — $ 492 $ 492 $ — $ — $ — 2 - High quality 6,089 8,599 14,688 4,148 1,436 5,584 3 - High satisfactory 95,744 45,705 141,449 28,296 12,807 41,103 4 - Low satisfactory 197,605 57,353 254,958 36,822 23,792 60,614 5 - Special mention 7,101 808 7,909 2,188 1,278 3,466 6 - Substandard 10,278 280 10,558 1,801 292 2,093 7 - Vulnerable 927 927 274 — 274 8 - Doubtful — — — — — — Total $ 317,744 $ 113,237 $ 430,981 $ 73,529 $ 39,605 $ 113,134 December 31, 2014 Commercial Agricultural Real Estate Other Total Real Estate Other Total Rating 1 - Excellent $ — $ 492 $ 492 $ — $ — $ — 2 - High quality 13,620 14,423 28,043 5,806 3,582 9,388 3 - High satisfactory 94,556 51,230 145,786 28,715 12,170 40,885 4 - Low satisfactory 184,000 49,869 233,869 33,361 17,560 50,921 5 - Special mention 8,456 1,322 9,778 1,607 65 1,672 6 - Substandard 11,055 123 11,178 1,602 147 1,749 7 - Vulnerable 2,687 116 2,803 106 — 106 8 - Doubtful — 12 12 — — — Total $ 314,374 $ 117,587 $ 431,961 $ 71,197 $ 33,524 $ 104,721 |
Summary of past due and current loans | The following tables summarize the past due and current loans as of: June 30, 2015 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 696 $ 25 $ — $ 927 $ 1,648 $ 316,096 $ 317,744 Commercial other 133 6 — — 139 113,098 113,237 Total commercial 829 31 — 927 1,787 429,194 430,981 Agricultural Agricultural real estate 21 138 — 274 433 73,096 73,529 Agricultural other 187 — — — 187 39,418 39,605 Total agricultural 208 138 — 274 620 112,514 113,134 Residential real estate Senior liens 2,156 335 19 329 2,839 198,074 200,913 Junior liens 15 55 — — 70 10,059 10,129 Home equity lines of credit 86 — — — 86 39,080 39,166 Total residential real estate 2,257 390 19 329 2,995 247,213 250,208 Consumer Secured 96 22 — — 118 30,141 30,259 Unsecured 8 — — — 8 4,012 4,020 Total consumer 104 22 — — 126 34,153 34,279 Total $ 3,398 $ 581 $ 19 $ 1,530 $ 5,528 $ 823,074 $ 828,602 December 31, 2014 Accruing Interest Total Past Due and Nonaccrual 30-59 60-89 90 Days Nonaccrual Current Total Commercial Commercial real estate $ 1,155 $ 282 $ — $ 2,764 $ 4,201 $ 310,173 $ 314,374 Commercial other 153 24 2 116 295 117,292 117,587 Total commercial 1,308 306 2 2,880 4,496 427,465 431,961 Agricultural Agricultural real estate 101 — — 106 207 70,990 71,197 Agricultural other 102 — — — 102 33,422 33,524 Total agricultural 203 — — 106 309 104,412 104,721 Residential real estate Senior liens 1,821 425 146 668 3,060 210,138 213,198 Junior liens 235 18 — 130 383 10,750 11,133 Home equity lines of credit 468 20 — 250 738 39,526 40,264 Total residential real estate 2,524 463 146 1,048 4,181 260,414 264,595 Consumer Secured 107 2 — 10 119 28,229 28,348 Unsecured 19 — — — 19 3,938 3,957 Total consumer 126 2 — 10 138 32,167 32,305 Total $ 4,161 $ 771 $ 148 $ 4,044 $ 9,124 $ 824,458 $ 833,582 |
Information pertaining to impaired loans | The following is a summary of information pertaining to impaired loans as of: June 30, 2015 December 31, 2014 Outstanding Balance Unpaid Principal Balance Valuation Allowance Outstanding Balance Unpaid Principal Balance Valuation Allowance Impaired loans with a valuation allowance Commercial real estate $ 6,661 $ 6,780 $ 1,292 $ 7,115 $ 7,234 $ 1,279 Commercial other 560 560 3 609 828 4 Agricultural real estate — — — — — — Residential real estate senior liens 10,033 11,018 1,878 11,645 12,782 2,015 Residential real estate junior liens 141 151 28 265 275 53 Home equity lines of credit — — — 250 650 75 Consumer secured 41 41 1 54 54 1 Total impaired loans with a valuation allowance 17,436 18,550 3,202 19,938 21,823 3,427 Impaired loans without a valuation allowance Commercial real estate 1,765 1,898 4,116 4,462 Commercial other 64 75 189 212 Agricultural real estate 1,657 1,657 1,529 1,529 Agricultural other 655 655 66 186 Home equity lines of credit 139 439 — — Consumer secured — — 10 10 Total impaired loans without a valuation allowance 4,280 4,724 5,910 6,399 Impaired loans Commercial 9,050 9,313 1,295 12,029 12,736 1,283 Agricultural 2,312 2,312 — 1,595 1,715 — Residential real estate 10,313 11,608 1,906 12,160 13,707 2,143 Consumer 41 41 1 64 64 1 Total impaired loans $ 21,716 $ 23,274 $ 3,202 $ 25,848 $ 28,222 $ 3,427 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 Average Outstanding Balance Interest Income Recognized Average Outstanding Balance Interest Income Recognized Impaired loans with a valuation allowance Commercial real estate $ 7,052 $ 92 $ 7,163 $ 183 Commercial other 569 9 581 19 Agricultural real estate 44 — 44 1 Residential real estate senior liens 10,805 99 11,208 217 Residential real estate junior liens 196 12 227 14 Home equity lines of credit — — 63 — Consumer secured 46 1 49 2 Total impaired loans with a valuation allowance 18,712 213 19,335 436 Impaired loans without a valuation allowance Commercial real estate 2,230 74 2,818 135 Commercial other 68 2 99 5 Agricultural real estate 1,545 20 1,513 41 Agricultural other 351 7 204 8 Home equity lines of credit 190 4 155 10 Consumer secured — — 3 — Total impaired loans without a valuation allowance 4,384 107 4,792 199 Impaired loans Commercial 9,919 177 10,661 342 Agricultural 1,940 27 1,761 50 Residential real estate 11,191 115 11,653 241 Consumer 46 1 52 2 Total impaired loans $ 23,096 $ 320 $ 24,127 $ 635 Three Months Ended Six Months Ended 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 — 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 |
Information pertaining to TDR's | Following is a summary of loans that defaulted in the three and six month periods ended June 30, 2015 , which were modified within 12 months prior to the default date. Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Number of Loans Pre- Charge-Off Post- Number of Loans Pre- Charge-Off Post- Residential real estate junior liens 1 $ 39 $ 39 $ — 1 $ 39 $ 39 $ — The following is a summary of TDR loan balances as of: June 30, 2015 December 31, 2014 TDRs $ 20,458 $ 23,341 The following is a summary of information pertaining to TDRs granted for the: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 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 $ 71 $ 71 5 $ 585 $ 585 Agricultural other 7 770 770 7 770 770 Residential real estate Senior liens 2 210 210 4 448 448 Junior liens 1 30 30 1 30 30 Home equity lines of credit — — — 1 94 94 Total residential real estate 3 240 240 6 572 572 Consumer unsecured — — — — — — Total 11 $ 1,081 $ 1,081 18 $ 1,927 $ 1,927 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 The following tables summarize concessions we granted to borrowers in financial difficulty for the: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 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 $ 71 — $ — 3 $ 254 2 $ 331 Agricultural other 6 724 1 46 6 724 1 46 Residential real estate Senior liens — — 2 210 1 50 3 398 Junior liens — — 1 30 — — 1 30 Home equity lines of credit — — — — — — 1 94 Total residential real estate — — 3 240 1 50 5 522 Consumer unsecured — — — — — — — — Total 7 $ 795 4 $ 286 10 $ 1,028 8 $ 899 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 |
Schedule of Foreclosed Assets | The following is a summary of foreclosed assets as of: June 30, 2015 December 31, 2014 Consumer mortgage loans collateralized by residential real estate foreclosed as a result of obtaining physical possession (1) $ — N/A Foreclosed Assets 873 885 Total $ 873 $ 885 (1) Disclosure requirement from the adoption of ASU No. 2014-04 on January 1, 2015. As such, measurement was applicable for December 31, 2014. |
Equity Securities Without Rea26
Equity Securities Without Readily Determinable Fair Values (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 FHLB Stock $ 10,800 $ 9,800 Corporate Settlement Solutions, LLC 7,005 6,936 FRB Stock 1,999 1,999 Valley Financial Corporation 1,000 1,000 Other 338 341 Total $ 21,142 $ 20,076 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Instrument [Line Items] | |
Summary of borrowed funds | Borrowed funds consist of the following obligations as of: June 30, 2015 December 31, 2014 Amount Rate Amount Rate FHLB advances $ 240,000 1.71 % $ 192,000 2.05 % Securities sold under agreements to repurchase without stated maturity dates 67,599 0.12 % 95,070 0.14 % Securities sold under agreements to repurchase with stated maturity dates — — 439 3.25 % Federal funds purchased — — 2,200 0.50 % Total $ 307,599 1.36 % $ 289,709 1.41 % |
Federal Home Loan Bank, Advances | The following table lists the maturity and weighted average interest rates of FHLB advances as of: June 30, 2015 December 31, 2014 Amount Rate Amount Rate Fixed rate due 2015 $ 30,000 0.68 % $ — — Variable rate due 2015 35,000 0.44 % — — Fixed rate due 2016 20,000 1.34 % 42,000 0.72 % Variable rate due 2016 15,000 0.44 % 10,000 2.15 % Fixed rate due 2017 30,000 1.95 % 30,000 1.95 % Fixed rate due 2018 40,000 2.35 % 40,000 2.35 % Fixed rate due 2019 20,000 3.11 % 20,000 3.11 % Fixed rate due 2020 — — 10,000 1.98 % Fixed rate due 2021 40,000 2.19 % 30,000 2.26 % Fixed rate due 2023 10,000 3.90 % 10,000 3.90 % Total $ 240,000 1.71 % $ 192,000 2.05 % |
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, 2015 December 31, 2014 Amount Rate Amount Rate Repurchase agreements due 2015 $ — — $ 439 3.25 % |
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 2015 2014 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 $ 67,599 $ 63,294 0.13 % $ 90,813 $ 90,484 0.13 % Federal funds purchased 12,600 5,770 0.52 % 16,500 6,849 0.48 % Six Months Ended June 30 2015 2014 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 $ 84,859 $ 71,129 0.13 % $ 94,741 $ 92,412 0.13 % Federal funds purchased 12,600 5,738 0.50 % 16,500 6,305 0.47 % |
Summary of pledged financial instruments | We had pledged AFS securities and 1-4 family residential real estate loans in the following amounts at: June 30 December 31 Pledged to secure borrowed funds $ 344,764 $ 324,584 Pledged to secure repurchase agreements 67,661 94,537 Pledged for public deposits and for other purposes necessary or required by law 21,278 19,851 Total $ 433,703 $ 438,972 AFS securities pledged to repurchase agreements without stated maturity dates consisted of the following at: June 30 December 31 States and political subdivisions $ 2,041 $ 6,643 Mortgage-backed securities 24,146 29,655 Collateralized mortgage obligations 41,474 58,239 Total $ 67,661 $ 94,537 |
Other Noninterest Expenses (Tab
Other Noninterest Expenses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 2015 2014 2015 2014 Marketing and community relations $ 228 $ 211 $ 483 $ 454 FDIC insurance premiums 203 221 415 423 Director fees 206 183 404 378 Audit and related fees 188 182 346 320 Education and travel 129 143 221 264 Printing and supplies 96 87 198 189 Postage and freight 92 90 190 198 Legal fees 93 106 152 160 Loan underwriting fees 62 92 150 187 Consulting fees 79 76 142 167 All other 516 629 1,065 1,270 Total other $ 1,892 $ 2,020 $ 3,766 $ 4,010 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 2015 2014 2015 2014 Income taxes at 34% statutory rate $ 1,725 $ 1,448 $ 3,236 $ 2,763 Effect of nontaxable income Interest income on tax exempt municipal securities (510 ) (503 ) (1,010 ) (997 ) Earnings on corporate owned life insurance policies (66 ) (64 ) (130 ) (127 ) Effect of tax credits (181 ) (191 ) (367 ) (388 ) Other (26 ) (43 ) (52 ) (77 ) Total effect of nontaxable income (783 ) (801 ) (1,559 ) (1,589 ) Effect of nondeductible expenses 35 45 71 78 Federal income tax expense $ 977 $ 692 $ 1,748 $ 1,252 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Quantitative information about assets measured utilizing Level 3 fair value measurement | The following tables list the quantitative fair value information about impaired loans as of: June 30, 2015 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Real Estate 20% - 30% Equipment 25% - 50% Discounted appraisal value $6,133 Cash crop inventory 40% Other inventory 50% - 75% Accounts receivable 50% Liquor license 75% December 31, 2014 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Real Estate 20% - 25% Equipment 30% - 40% Discounted appraisal value $8,720 Cash crop inventory 40% Other inventory 75% Accounts receivable 50% Liquor license 75% The table below lists the quantitative fair value information related to foreclosed assets as of: June 30, 2015 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Discounted appraisal value $ 873 Real Estate 20% - 30% December 31, 2014 Valuation Technique Fair Value Unobservable Input Range Discount applied to collateral appraisal: Discounted appraisal value $ 885 Real Estate 20% - 25% |
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 were as follows as of: June 30, 2015 Carrying Estimated (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents $ 29,641 $ 29,641 $ 29,641 $ — $ — Certificates of deposit held in other financial institutions 340 339 — 339 — Mortgage loans AFS 1,029 1,046 — 1,046 — Gross loans 828,602 820,828 — — 820,828 Less allowance for loan and lease losses 9,000 9,000 — — 9,000 Net loans 819,602 811,828 — — 811,828 Accrued interest receivable 5,469 5,469 5,469 — — Equity securities without readily determinable fair values (1) 21,142 N/A — — — OMSR 2,492 2,499 — 2,499 — LIABILITIES Deposits without stated maturities 654,044 654,044 654,044 — — Deposits with stated maturities 436,425 436,241 — 436,241 — Borrowed funds 307,599 310,913 — 310,913 — Accrued interest payable 522 522 522 — — December 31, 2014 Carrying Estimated (Level 1) (Level 2) (Level 3) ASSETS Cash and cash equivalents $ 19,326 $ 19,326 $ 19,326 $ — $ — Certificates of deposit held in other financial institutions 580 579 — 579 — Mortgage loans AFS 901 911 — 911 — Gross loans 833,582 827,449 — — 827,449 Less allowance for loan and lease losses 10,100 10,100 — — 10,100 Net loans 823,482 817,349 — — 817,349 Accrued interest receivable 5,851 5,851 5,851 — — Equity securities without readily determinable fair values (1) 20,076 N/A — — — OMSR 2,519 2,554 — 2,554 — LIABILITIES Deposits without stated maturities 634,222 634,222 634,222 — — Deposits with stated maturities 440,262 440,964 — 440,964 — Borrowed funds 289,709 293,401 — 293,401 — Accrued interest payable 558 558 558 — — (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, 2015 December 31, 2014 Total (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Recurring items AFS securities Government-sponsored enterprises $ 24,203 $ — $ 24,203 $ — $ 24,136 $ — $ 24,136 $ — States and political subdivisions 216,647 — 216,647 — 215,345 — 215,345 — Auction rate money market preferred 2,719 — 2,719 — 2,619 — 2,619 — Preferred stocks 3,230 3,230 — — 6,140 6,140 — — Mortgage-backed securities 210,194 — 210,194 — 166,926 — 166,926 — Collateralized mortgage obligations 138,325 — 138,325 — 152,368 — 152,368 — Total AFS securities 595,318 3,230 592,088 — 567,534 6,140 561,394 — Nonrecurring items Impaired loans (net of the ALLL) 6,133 — — 6,133 8,720 — — 8,720 Foreclosed assets 873 — — 873 885 — — 885 Total $ 602,324 $ 3,230 $ 592,088 $ 7,006 $ 577,139 $ 6,140 $ 561,394 $ 9,605 Percent of assets and liabilities measured at fair value 0.54 % 98.30 % 1.16 % 1.06 % 97.27 % 1.67 % The following table provides a summary of the changes in fair value of assets and liabilities recorded at fair value, for which gains or losses were recognized through earnings on a nonrecurring basis, in the: Three Months Ended Six Months Ended 2015 2014 2015 2014 Nonrecurring items Foreclosed assets $ (22 ) $ (20 ) $ (22 ) $ (63 ) |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 2015 2014 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 $ 190 $ (6,710 ) $ (6,520 ) $ 298 $ 4,150 $ 4,448 Tax effect — 2,165 2,165 — (1,420 ) (1,420 ) Unrealized gains (losses), net of tax $ 190 $ (4,545 ) $ (4,355 ) $ 298 $ 2,730 $ 3,028 Six Months Ended June 30 2015 2014 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 $ 190 $ (2,354 ) $ (2,164 ) $ 298 $ 9,670 $ 9,968 Tax effect — 799 799 — (3,159 ) (3,159 ) Unrealized gains (losses), net of tax $ 190 $ (1,555 ) $ (1,365 ) $ 298 $ 6,511 $ 6,809 The following table summarizes the changes in AOCI by component for the: Three Months Ended June 30 2015 2014 Unrealized Defined Total Unrealized Defined Total Balance, April 1 $ 6,292 $ (3,808 ) $ 2,484 $ (426 ) $ (2,134 ) $ (2,560 ) OCI before reclassifications (6,520 ) — (6,520 ) 4,448 — 4,448 Amounts reclassified from AOCI — — — — — — Subtotal (6,520 ) — (6,520 ) 4,448 — 4,448 Tax effect 2,165 — 2,165 (1,420 ) — (1,420 ) OCI, net of tax (4,355 ) — (4,355 ) 3,028 — 3,028 Balance, June 30 $ 1,937 $ (3,808 ) $ (1,871 ) $ 2,602 $ (2,134 ) $ 468 Six Months Ended June 30 2015 2014 Unrealized Defined Total Unrealized Defined Total Balance, January 1 $ 3,302 $ (3,808 ) $ (506 ) $ (4,207 ) $ (2,134 ) $ (6,341 ) OCI before reclassifications (2,164 ) — (2,164 ) 9,968 — 9,968 Amounts reclassified from AOCI — — — — — — Subtotal (2,164 ) — (2,164 ) 9,968 — 9,968 Tax effect 799 — 799 (3,159 ) — (3,159 ) OCI, net of tax (1,365 ) — (1,365 ) 6,809 — 6,809 Balance, June 30 $ 1,937 $ (3,808 ) $ (1,871 ) $ 2,602 $ (2,134 ) $ 468 |
Parent Company Only Financial32
Parent Company Only Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Interim Condensed Balance Sheets | Interim Condensed Balance Sheets June 30 December 31 ASSETS Cash on deposit at the Bank $ 3,486 $ 1,035 AFS securities 261 3,294 Investments in subsidiaries 128,865 124,827 Premises and equipment 2,013 1,982 Other assets 52,929 53,228 TOTAL ASSETS $ 187,554 $ 184,366 LIABILITIES AND SHAREHOLDERS’ EQUITY Other liabilities $ 9,529 $ 9,772 Shareholders' equity 178,025 174,594 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 187,554 $ 184,366 |
Interim Condensed Statements of Income | Interim Condensed Statements of Income Three Months Ended Six Months Ended 2015 2014 2015 2014 Income Dividends from subsidiaries $ 1,700 $ 1,500 $ 3,300 $ 3,000 Interest income 35 39 71 78 Management fee and other 1,602 722 3,054 1,228 Total income 3,337 2,261 6,425 4,306 Expenses Compensation and benefits 1,240 772 2,430 1,604 Occupancy and equipment 401 107 811 221 Audit and related fees 114 98 215 169 Other 539 298 1,032 566 Total expenses 2,294 1,275 4,488 2,560 Income before income tax benefit and equity in undistributed earnings of subsidiaries 1,043 986 1,937 1,746 Federal income tax benefit 224 178 465 432 Income before equity in undistributed earnings of subsidiaries 1,267 1,164 2,402 2,178 Undistributed earnings of subsidiaries 2,831 2,401 5,369 4,696 Net income $ 4,098 $ 3,565 $ 7,771 $ 6,874 |
Interim Condensed Statements of Cash Flows | Interim Condensed Statements of Cash Flows Six Months Ended 2015 2014 Operating activities Net income $ 7,771 $ 6,874 Adjustments to reconcile net income to cash provided by operations Undistributed earnings of subsidiaries (5,369 ) (4,696 ) Undistributed earnings of equity securities without readily determinable fair values (65 ) (10 ) Share-based payment awards 259 237 Depreciation 74 65 Net amortization of AFS securities — 2 Changes in operating assets and liabilities which provided (used) cash Other assets 364 (40 ) Accrued interest and other liabilities (33 ) 836 Net cash provided by (used in) operating activities 3,001 3,268 Investing activities Maturities, calls, principal payments, and sales of AFS securities 3,000 — Purchases of premises and equipment (105 ) (6 ) Net cash provided by (used in) investing activities 2,895 (6 ) Financing activities Net increase (decrease) in borrowed funds (211 ) 600 Cash dividends paid on common stock (3,557 ) (3,394 ) Proceeds from the issuance of common stock 2,192 1,778 Common stock repurchased (1,704 ) (1,648 ) Common stock purchased for deferred compensation obligations (165 ) (166 ) Net cash provided by (used in) financing activities (3,445 ) (2,830 ) Increase (decrease) in cash and cash equivalents 2,451 432 Cash and cash equivalents at beginning of period 1,035 529 Cash and cash equivalents at end of period $ 3,486 $ 961 |
Computation of Earnings Per C33
Computation of Earnings Per Common Share (Schedule of Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Earnings Per Share [Abstract] | |||||
Average number of common shares outstanding for basic calculation | 7,779,365 | 7,722,367 | 7,776,413 | 7,721,814 | |
Average potential effect of common shares in the Directors Plan | [1] | 176,690 | 168,715 | 176,845 | 170,984 |
Average number of common shares outstanding used to calculate diluted earnings per common share | 7,956,055 | 7,891,082 | 7,953,258 | 7,892,798 | |
Net income | $ 4,098 | $ 3,565 | $ 7,771 | $ 6,874 | |
Basic (in dollars per share) | $ 0.53 | $ 0.46 | $ 1 | $ 0.89 | |
Diluted (in dollars per share) | $ 0.52 | $ 0.45 | $ 0.98 | $ 0.87 | |
[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 ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 591,841 | $ 561,893 |
Gross Unrealized Gains | 8,548 | 10,602 |
Gross Unrealized Losses | 5,071 | 4,961 |
AFS securities | 595,318 | 567,534 |
Government sponsored enterprises [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 24,520 | 24,597 |
Gross Unrealized Gains | 8 | 10 |
Gross Unrealized Losses | 325 | 471 |
AFS securities | 24,203 | 24,136 |
States and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 212,152 | 209,153 |
Gross Unrealized Gains | 5,550 | 6,986 |
Gross Unrealized Losses | 1,055 | 794 |
AFS securities | 216,647 | 215,345 |
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 | 481 | 581 |
AFS securities | 2,719 | 2,619 |
Preferred stocks [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,800 | 6,800 |
Gross Unrealized Gains | 0 | 31 |
Gross Unrealized Losses | 570 | 691 |
AFS securities | 3,230 | 6,140 |
Mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 210,615 | 165,888 |
Gross Unrealized Gains | 1,298 | 2,042 |
Gross Unrealized Losses | 1,719 | 1,004 |
AFS securities | 210,194 | 166,926 |
Collateralized mortgage obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 137,554 | 152,255 |
Gross Unrealized Gains | 1,692 | 1,533 |
Gross Unrealized Losses | 921 | 1,420 |
AFS securities | $ 138,325 | $ 152,368 |
AFS Securities (Amortized cos35
AFS Securities (Amortized cost and fair value of AFS securities by contractual maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less | $ 16,230 | |
Maturing, After One Year But Within Five Years | 88,361 | |
Maturing, After Five Years But Within Ten Years | 89,838 | |
Maturing, After Ten Years | 42,243 | |
Securities With Variable Monthly Payments or Noncontractual Maturities | 355,169 | |
Amortized Cost | 591,841 | $ 561,893 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less, Fair value | 16,346 | |
Maturing, After One Year But Within Five Years, Fair value | 90,400 | |
Maturing, After Five Years But Within Ten Years, Fair value | 91,896 | |
Maturing, After Ten Years, Fair value | 42,208 | |
Securities With Variable Monthly Payments or Noncontractual Maturities, Fair value | 354,468 | |
Total, Fair value | 595,318 | 567,534 |
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 | 24,068 | |
Maturing, After Five Years But Within Ten Years | 452 | |
Maturing, After Ten Years | 0 | |
Securities With Variable Monthly Payments or Noncontractual Maturities | 0 | |
Amortized Cost | 24,520 | 24,597 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 24,203 | 24,136 |
States and political subdivisions [Member] | ||
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Rolling Maturity [Abstract] | ||
Maturing, Due in One Year or Less | 16,230 | |
Maturing, After One Year But Within Five Years | 64,293 | |
Maturing, After Five Years But Within Ten Years | 89,386 | |
Maturing, After Ten Years | 42,243 | |
Securities With Variable Monthly Payments or Noncontractual Maturities | 0 | |
Amortized Cost | 212,152 | 209,153 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 216,647 | 215,345 |
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 | 2,719 | 2,619 |
Preferred stocks [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 | 3,800 | |
Amortized Cost | 3,800 | 6,800 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 3,230 | 6,140 |
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 | 210,615 | |
Amortized Cost | 210,615 | 165,888 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | 210,194 | 166,926 |
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 | 137,554 | |
Amortized Cost | 137,554 | 152,255 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Total, Fair value | $ 138,325 | $ 152,368 |
AFS Securities (AFS securities
AFS Securities (AFS securities with gross unrealized losses) (Details) $ in Thousands | Jun. 30, 2015USD ($)Securities | Dec. 31, 2014USD ($)Securities |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | $ 1,416 | $ 158 |
Fair Value, Less Than Twelve Months | 163,117 | 44,214 |
Gross Unrealized Losses, Twelve Months or More | 3,655 | 4,803 |
Fair Value, Twelve Months or More | 102,014 | 138,616 |
Total Unrealized Losses | $ 5,071 | $ 4,961 |
Number of Securities in an unrealized loss position, Less Than Twelve Months, Fair Value | Securities | 103 | 22 |
Number of Securities in an unrealized loss position, Twelve Months or More, Fair Value | Securities | 28 | 72 |
Number of Securities in an unrealized loss position, Total Unrealized Losses | Securities | 131 | 94 |
Government sponsored enterprises [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 | 325 | 471 |
Fair Value, Twelve Months or More | 23,671 | 23,525 |
Total Unrealized Losses | 325 | 471 |
States and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 494 | 48 |
Fair Value, Less Than Twelve Months | 26,761 | 5,323 |
Gross Unrealized Losses, Twelve Months or More | 561 | 746 |
Fair Value, Twelve Months or More | 3,259 | 17,416 |
Total Unrealized Losses | 1,055 | 794 |
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 | 481 | 581 |
Fair Value, Twelve Months or More | 2,719 | 2,619 |
Total Unrealized Losses | 481 | 581 |
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 | 570 | 691 |
Fair Value, Twelve Months or More | 3,230 | 3,109 |
Total Unrealized Losses | 570 | 691 |
Mortgage-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 740 | 5 |
Fair Value, Less Than Twelve Months | 91,235 | 9,456 |
Gross Unrealized Losses, Twelve Months or More | 979 | 999 |
Fair Value, Twelve Months or More | 40,154 | 52,407 |
Total Unrealized Losses | 1,719 | 1,004 |
Collateralized mortgage obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 182 | 105 |
Fair Value, Less Than Twelve Months | 45,121 | 29,435 |
Gross Unrealized Losses, Twelve Months or More | 739 | 1,315 |
Fair Value, Twelve Months or More | 28,981 | 39,540 |
Total Unrealized Losses | $ 921 | $ 1,420 |
Loans and ALLL (Summary of chan
Loans and ALLL (Summary of changes in ALLL by segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of changes in the ALLL and the recorded investment in loans by segments | ||||
Allowance for loan losses, Beginning Balance | $ 9,600 | $ 11,100 | $ 10,100 | $ 11,500 |
Allowance for loan losses, Loans charged off | (296) | (411) | (456) | (861) |
Allowance for loan losses, Recoveries | 231 | 211 | 617 | 503 |
Allowance for loan losses, Provision for loan losses | (535) | (200) | (1,261) | (442) |
Allowance for loan losses, Ending Balance | 9,000 | 10,700 | 9,000 | 10,700 |
Commercial [Member] | ||||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||||
Allowance for loan losses, Beginning Balance | 3,810 | 4,814 | 3,823 | 6,048 |
Allowance for loan losses, Loans charged off | (11) | (79) | (28) | (271) |
Allowance for loan losses, Recoveries | 106 | 92 | 319 | 306 |
Allowance for loan losses, Provision for loan losses | (422) | 185 | (631) | (1,071) |
Allowance for loan losses, Ending Balance | 3,483 | 5,012 | 3,483 | 5,012 |
Agricultural [Member] | ||||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||||
Allowance for loan losses, Beginning Balance | 206 | 425 | 216 | 434 |
Allowance for loan losses, Loans charged off | 0 | 0 | 0 | (31) |
Allowance for loan losses, Recoveries | 0 | 0 | 72 | 0 |
Allowance for loan losses, Provision for loan losses | 157 | (206) | 75 | (184) |
Allowance for loan losses, Ending Balance | 363 | 219 | 363 | 219 |
Residential Real Estate [Member] | ||||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||||
Allowance for loan losses, Beginning Balance | 3,729 | 4,727 | 4,238 | 3,845 |
Allowance for loan losses, Loans charged off | (205) | (264) | (255) | (377) |
Allowance for loan losses, Recoveries | 86 | 86 | 119 | 122 |
Allowance for loan losses, Provision for loan losses | (96) | (568) | (588) | 391 |
Allowance for loan losses, Ending Balance | 3,514 | 3,981 | 3,514 | 3,981 |
Consumer [Member] | ||||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||||
Allowance for loan losses, Beginning Balance | 711 | 630 | 645 | 639 |
Allowance for loan losses, Loans charged off | (80) | (68) | (173) | (182) |
Allowance for loan losses, Recoveries | 39 | 33 | 107 | 75 |
Allowance for loan losses, Provision for loan losses | (79) | 207 | 12 | 270 |
Allowance for loan losses, Ending Balance | 591 | 802 | 591 | 802 |
Unallocated [Member] | ||||
Summary of changes in the ALLL and the recorded investment in loans by segments | ||||
Allowance for loan losses, Beginning Balance | 1,144 | 504 | 1,178 | 534 |
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 | (95) | 182 | (129) | 152 |
Allowance for loan losses, Ending Balance | $ 1,049 | $ 686 | $ 1,049 | $ 686 |
Loans and ALLL (Summary of reco
Loans and ALLL (Summary of recorded investment in loans by segments) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment, ALLL | $ 3,202 | $ 3,427 | ||||
Collectively evaluated for impairment, ALLL | 5,798 | 6,673 | ||||
Total, ALLL | 9,000 | $ 9,600 | 10,100 | $ 10,700 | $ 11,100 | $ 11,500 |
Individually evaluated for impairment, Loans | 21,716 | 25,848 | ||||
Collectively evaluated for impairment, Loans | 806,886 | 807,734 | ||||
Total | 828,602 | 833,582 | ||||
Commercial [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment, ALLL | 1,295 | 1,283 | ||||
Collectively evaluated for impairment, ALLL | 2,188 | 2,540 | ||||
Total, ALLL | 3,483 | 3,810 | 3,823 | 5,012 | 4,814 | 6,048 |
Individually evaluated for impairment, Loans | 9,050 | 12,029 | ||||
Collectively evaluated for impairment, Loans | 421,931 | 419,932 | ||||
Total | 430,981 | 431,961 | ||||
Agricultural [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment, ALLL | 0 | 0 | ||||
Collectively evaluated for impairment, ALLL | 363 | 216 | ||||
Total, ALLL | 363 | 206 | 216 | 219 | 425 | 434 |
Individually evaluated for impairment, Loans | 2,312 | 1,595 | ||||
Collectively evaluated for impairment, Loans | 110,822 | 103,126 | ||||
Total | 113,134 | 104,721 | ||||
Residential Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment, ALLL | 1,906 | 2,143 | ||||
Collectively evaluated for impairment, ALLL | 1,608 | 2,095 | ||||
Total, ALLL | 3,514 | 3,729 | 4,238 | 3,981 | 4,727 | 3,845 |
Individually evaluated for impairment, Loans | 10,313 | 12,160 | ||||
Collectively evaluated for impairment, Loans | 239,895 | 252,435 | ||||
Total | 250,208 | 264,595 | ||||
Consumer [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment, ALLL | 1 | 1 | ||||
Collectively evaluated for impairment, ALLL | 590 | 644 | ||||
Total, ALLL | 591 | 711 | 645 | 802 | 630 | 639 |
Individually evaluated for impairment, Loans | 41 | 64 | ||||
Collectively evaluated for impairment, Loans | 34,238 | 32,241 | ||||
Total | 34,279 | 32,305 | ||||
Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
Individually evaluated for impairment, ALLL | 0 | 0 | ||||
Collectively evaluated for impairment, ALLL | 1,049 | 1,178 | ||||
Total, ALLL | $ 1,049 | $ 1,144 | $ 1,178 | $ 686 | $ 504 | $ 534 |
Loans and ALLL (Credit quality
Loans and ALLL (Credit quality indicators for commercial and agricultural credit exposures) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 828,602 | $ 833,582 |
Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 430,981 | 431,961 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 317,744 | 314,374 |
Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 113,237 | 117,587 |
Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 113,134 | 104,721 |
Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 73,529 | 71,197 |
Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 39,605 | 33,524 |
1 - Excellent [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 492 | 492 |
1 - Excellent [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 492 | 492 |
1 - Excellent [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
1 - Excellent [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
2 - High quality [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 14,688 | 28,043 |
2 - High quality [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6,089 | 13,620 |
2 - High quality [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 8,599 | 14,423 |
2 - High quality [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 5,584 | 9,388 |
2 - High quality [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,148 | 5,806 |
2 - High quality [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,436 | 3,582 |
3 - High satisfactory [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 141,449 | 145,786 |
3 - High satisfactory [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 95,744 | 94,556 |
3 - High satisfactory [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 45,705 | 51,230 |
3 - High satisfactory [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 41,103 | 40,885 |
3 - High satisfactory [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 28,296 | 28,715 |
3 - High satisfactory [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 12,807 | 12,170 |
4 - Low satisfactory [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 254,958 | 233,869 |
4 - Low satisfactory [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 197,605 | 184,000 |
4 - Low satisfactory [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 57,353 | 49,869 |
4 - Low satisfactory [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 60,614 | 50,921 |
4 - Low satisfactory [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 36,822 | 33,361 |
4 - Low satisfactory [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 23,792 | 17,560 |
5 - Special mention [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,909 | 9,778 |
5 - Special mention [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 7,101 | 8,456 |
5 - Special mention [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 808 | 1,322 |
5 - Special mention [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,466 | 1,672 |
5 - Special mention [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,188 | 1,607 |
5 - Special mention [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,278 | 65 |
6 - Substandard [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,558 | 11,178 |
6 - Substandard [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 10,278 | 11,055 |
6 - Substandard [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 280 | 123 |
6 - Substandard [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,093 | 1,749 |
6 - Substandard [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 1,801 | 1,602 |
6 - Substandard [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 292 | 147 |
7 - Vulnerable [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 927 | 2,803 |
7 - Vulnerable [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 927 | 2,687 |
7 - Vulnerable [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 116 | |
7 - Vulnerable [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 274 | 106 |
7 - Vulnerable [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 274 | 106 |
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 | 0 | 12 |
8 - Doubtful [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 0 |
8 - Doubtful [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 0 | 12 |
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 ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | $ 19 | $ 148 |
Nonaccrual | 1,530 | 4,044 |
Total Past Due and Nonaccrual | 5,528 | 9,124 |
Current | 823,074 | 824,458 |
Total | 828,602 | 833,582 |
Total commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | 0 | 2 |
Nonaccrual | 927 | 2,880 |
Total Past Due and Nonaccrual | 1,787 | 4,496 |
Current | 429,194 | 427,465 |
Total | 430,981 | 431,961 |
Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 927 | 2,764 |
Total Past Due and Nonaccrual | 1,648 | 4,201 |
Current | 316,096 | 310,173 |
Total | 317,744 | 314,374 |
Commercial other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | 0 | 2 |
Nonaccrual | 0 | 116 |
Total Past Due and Nonaccrual | 139 | 295 |
Current | 113,098 | 117,292 |
Total | 113,237 | 117,587 |
Total agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 274 | 106 |
Total Past Due and Nonaccrual | 620 | 309 |
Current | 112,514 | 104,412 |
Total | 113,134 | 104,721 |
Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 274 | 106 |
Total Past Due and Nonaccrual | 433 | 207 |
Current | 73,096 | 70,990 |
Total | 73,529 | 71,197 |
Agricultural other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 187 | 102 |
Current | 39,418 | 33,422 |
Total | 39,605 | 33,524 |
Total residential real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | 19 | 146 |
Nonaccrual | 329 | 1,048 |
Total Past Due and Nonaccrual | 2,995 | 4,181 |
Current | 247,213 | 260,414 |
Total | 250,208 | 264,595 |
Residential real estate senior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | 19 | 146 |
Nonaccrual | 329 | 668 |
Total Past Due and Nonaccrual | 2,839 | 3,060 |
Current | 198,074 | 210,138 |
Total | 200,913 | 213,198 |
Residential real estate junior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 0 | 130 |
Total Past Due and Nonaccrual | 70 | 383 |
Current | 10,059 | 10,750 |
Total | 10,129 | 11,133 |
Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 0 | 250 |
Total Past Due and Nonaccrual | 86 | 738 |
Current | 39,080 | 39,526 |
Total | 39,166 | 40,264 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 0 | 10 |
Total Past Due and Nonaccrual | 126 | 138 |
Current | 34,153 | 32,167 |
Total | 34,279 | 32,305 |
Consumer secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 0 | 10 |
Total Past Due and Nonaccrual | 118 | 119 |
Current | 30,141 | 28,229 |
Total | 30,259 | 28,348 |
Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Pass Due: 90 Days or More | 0 | 0 |
Nonaccrual | 0 | 0 |
Total Past Due and Nonaccrual | 8 | 19 |
Current | 4,012 | 3,938 |
Total | 4,020 | 3,957 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 3,398 | 4,161 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 829 | 1,308 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 696 | 1,155 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 133 | 153 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 208 | 203 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 21 | 101 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 187 | 102 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Total residential real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 2,257 | 2,524 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate senior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 2,156 | 1,821 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate junior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 15 | 235 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 86 | 468 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 104 | 126 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 96 | 107 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 8 | 19 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 581 | 771 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 31 | 306 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 25 | 282 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Commercial other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 6 | 24 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total agricultural [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 138 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Agricultural real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 138 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Agricultural other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 0 | 0 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Total residential real estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 390 | 463 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate senior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 335 | 425 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate junior liens [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 55 | 18 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Residential real estate home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 0 | 20 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 22 | 2 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | 22 | 2 |
Financing Receivables, 60 to 89 Days Past Due [Member] | Consumer Unsecured Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Interest and Past Due | $ 0 | $ 0 |
Loans and ALLL (Summary of info
Loans and ALLL (Summary of information pertaining to impaired loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | $ 17,436 | $ 17,436 | $ 19,938 | ||
Impaired loans without a valuation allowance, Outstanding Balance | 4,280 | 4,280 | 5,910 | ||
Impaired loans, Outstanding Balance | 21,716 | 21,716 | 25,848 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 18,550 | 18,550 | 21,823 | ||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 4,724 | 4,724 | 6,399 | ||
Impaired loans, Unpaid Principal Balance | 23,274 | 23,274 | 28,222 | ||
Impaired loans, Valuation Allowance | 3,202 | 3,202 | 3,427 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 18,712 | $ 20,825 | 19,335 | $ 21,141 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 4,384 | 7,646 | 4,792 | 7,839 | |
Impaired loans, Average Outstanding Balance | 23,096 | 28,471 | 24,127 | 28,980 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 213 | 239 | 436 | 492 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 107 | 113 | 199 | 265 | |
Impaired loans, Interest Income Recognized | 320 | 352 | 635 | 757 | |
Total commercial [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans, Outstanding Balance | 9,050 | 9,050 | 12,029 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans, Unpaid Principal Balance | 9,313 | 9,313 | 12,736 | ||
Impaired loans, Valuation Allowance | 1,295 | 1,295 | 1,283 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans, Average Outstanding Balance | 9,919 | 13,601 | 10,661 | 13,761 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans, Interest Income Recognized | 177 | 194 | 342 | 414 | |
Commercial real estate [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | 6,661 | 6,661 | 7,115 | ||
Impaired loans without a valuation allowance, Outstanding Balance | 1,765 | 1,765 | 4,116 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 6,780 | 6,780 | 7,234 | ||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 1,898 | 1,898 | 4,462 | ||
Impaired loans, Valuation Allowance | 1,292 | 1,292 | 1,279 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 7,052 | 6,644 | 7,163 | 6,701 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 2,230 | 5,819 | 2,818 | 5,797 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 92 | 91 | 183 | 185 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 74 | 91 | 135 | 193 | |
Commercial other [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | 560 | 560 | 609 | ||
Impaired loans without a valuation allowance, Outstanding Balance | 64 | 64 | 189 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 560 | 560 | 828 | ||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 75 | 75 | 212 | ||
Impaired loans, Valuation Allowance | 3 | 3 | 4 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 569 | 852 | 581 | 825 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 68 | 286 | 99 | 438 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 9 | 11 | 19 | 29 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 2 | 1 | 5 | 7 | |
Total agricultural [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans, Outstanding Balance | 2,312 | 2,312 | 1,595 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans, Unpaid Principal Balance | 2,312 | 2,312 | 1,715 | ||
Impaired loans, Valuation Allowance | 0 | 0 | 0 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans, Average Outstanding Balance | 1,940 | 1,683 | 1,761 | 1,671 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans, Interest Income Recognized | 27 | 20 | 50 | 65 | |
Agricultural real estate [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | 0 | 0 | 0 | ||
Impaired loans without a valuation allowance, Outstanding Balance | 1,657 | 1,657 | 1,529 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 0 | 0 | 0 | ||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 1,657 | 1,657 | 1,529 | ||
Impaired loans, Valuation Allowance | 0 | 0 | 0 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 44 | 147 | 44 | 118 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 1,545 | 1,405 | 1,513 | 1,407 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | (1) | 1 | 0 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 20 | 21 | 41 | 37 | |
Agricultural other [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans without a valuation allowance, Outstanding Balance | 655 | 655 | 66 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 655 | 655 | 186 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans without a valuation allowance, Average Outstanding Balance | 351 | 131 | 204 | 146 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans without a valuation allowance, Interest Income Recognized | 7 | 0 | 8 | 28 | |
Total residential real estate [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans, Outstanding Balance | 10,313 | 10,313 | 12,160 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans, Unpaid Principal Balance | 11,608 | 11,608 | 13,707 | ||
Impaired loans, Valuation Allowance | 1,906 | 1,906 | 2,143 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans, Average Outstanding Balance | 11,191 | 13,119 | 11,653 | 13,468 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans, Interest Income Recognized | 115 | 137 | 241 | 276 | |
Residential real estate senior liens [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | 10,033 | 10,033 | 11,645 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 11,018 | 11,018 | 12,782 | ||
Impaired loans, Valuation Allowance | 1,878 | 1,878 | 2,015 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 10,805 | 12,786 | 11,208 | 13,188 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 99 | 126 | 217 | 264 | |
Residential real estate junior liens [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | 141 | 141 | 265 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 151 | 151 | 275 | ||
Impaired loans, Valuation Allowance | 28 | 28 | 53 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 196 | 68 | 227 | 57 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 12 | 1 | 14 | 1 | |
Residential real estate home equity lines of credit [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Outstanding Balance | 0 | 0 | 250 | ||
Impaired loans without a valuation allowance, Outstanding Balance | 139 | 139 | 0 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 0 | 0 | 650 | ||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 439 | 439 | 0 | ||
Impaired loans, Valuation Allowance | 0 | 0 | 75 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 0 | 265 | 63 | 175 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 190 | 0 | 155 | 48 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 0 | 10 | 0 | 11 | |
Impaired loans without a valuation allowance, Interest Income Recognized | 4 | 0 | 10 | 0 | |
Consumer [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired loans, Outstanding Balance | 41 | 41 | 64 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans, Unpaid Principal Balance | 41 | 41 | 64 | ||
Impaired loans, Valuation Allowance | 1 | 1 | 1 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans, Average Outstanding Balance | 46 | 68 | 52 | 80 | |
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 | 41 | 41 | 54 | ||
Impaired loans without a valuation allowance, Outstanding Balance | 0 | 0 | 10 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired loans with a valuation allowance, Unpaid Principal Balance | 41 | 41 | 54 | ||
Impaired loans without a valuation allowance, Unpaid Principal Balance | 0 | 0 | 10 | ||
Impaired loans, Valuation Allowance | 1 | 1 | $ 1 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired loans with a valuation allowance, Average Outstanding Balance | 46 | 63 | 49 | 77 | |
Impaired loans without a valuation allowance, Average Outstanding Balance | 0 | 5 | 3 | 3 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired loans with a valuation allowance, Interest Income Recognized | 1 | 1 | 2 | 2 | |
Impaired loans without a valuation allowance, Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and ALLL (Summary of in42
Loans and ALLL (Summary of information pertaining to TDRs) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)loan | Jun. 30, 2014USD ($)loan | Jun. 30, 2015USD ($)loan | Jun. 30, 2014USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 11 | 8 | 18 | 22 |
Pre-Modification Recorded Investment | $ 1,081 | $ 387 | $ 1,927 | $ 1,233 |
Post-Modification Recorded Investment | $ 1,081 | $ 387 | $ 1,927 | $ 1,233 |
Interest Rate Below Market Reduction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 7 | 3 | 10 | 10 |
Pre-Modification Recorded Investment | $ 795 | $ 213 | $ 1,028 | $ 618 |
Below Market Interest Rate and Extension of Amortization Period [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 4 | 5 | 8 | 12 |
Pre-Modification Recorded Investment | $ 286 | $ 174 | $ 899 | $ 615 |
Commercial Other Portfolio Segment [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 1 | 1 | 5 | 5 |
Pre-Modification Recorded Investment | $ 71 | $ 8 | $ 585 | $ 363 |
Post-Modification Recorded Investment | $ 71 | $ 8 | $ 585 | $ 363 |
Commercial Other Portfolio Segment [Member] | Interest Rate Below Market Reduction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 1 | 0 | 3 | 4 |
Pre-Modification Recorded Investment | $ 71 | $ 0 | $ 254 | $ 355 |
Commercial Other Portfolio Segment [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 2 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 8 | $ 331 | $ 8 |
Agricultural other [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 7 | 0 | 7 | 0 |
Pre-Modification Recorded Investment | $ 770 | $ 0 | $ 770 | $ 0 |
Post-Modification Recorded Investment | $ 770 | $ 0 | $ 770 | $ 0 |
Agricultural other [Member] | Interest Rate Below Market Reduction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 6 | 0 | 6 | 0 |
Pre-Modification Recorded Investment | $ 724 | $ 0 | $ 724 | $ 0 |
Agricultural other [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 1 | 0 | 1 | 0 |
Pre-Modification Recorded Investment | $ 46 | $ 0 | $ 46 | $ 0 |
Total residential real estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 3 | 5 | 6 | 14 |
Pre-Modification Recorded Investment | $ 240 | $ 371 | $ 572 | $ 862 |
Post-Modification Recorded Investment | $ 240 | $ 371 | $ 572 | $ 862 |
Total residential real estate [Member] | Interest Rate Below Market Reduction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 2 | 1 | 4 |
Pre-Modification Recorded Investment | $ 0 | $ 208 | $ 50 | $ 258 |
Total residential real estate [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 3 | 3 | 5 | 10 |
Pre-Modification Recorded Investment | $ 240 | $ 163 | $ 522 | $ 604 |
Residential, Senior Liens, Financing Receivable [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 2 | 3 | 4 | 12 |
Pre-Modification Recorded Investment | $ 210 | $ 170 | $ 448 | $ 661 |
Post-Modification Recorded Investment | $ 210 | $ 170 | $ 448 | $ 661 |
Residential, Senior Liens, Financing Receivable [Member] | Interest Rate Below Market Reduction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 1 | 3 |
Pre-Modification Recorded Investment | $ 0 | $ 48 | $ 50 | $ 98 |
Residential, Senior Liens, Financing Receivable [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 2 | 2 | 3 | 9 |
Pre-Modification Recorded Investment | $ 210 | $ 122 | $ 398 | $ 563 |
Residential, Junior Liens, Financing Receivable [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 1 | 1 | 1 | 1 |
Pre-Modification Recorded Investment | $ 30 | $ 41 | $ 30 | $ 41 |
Post-Modification Recorded Investment | $ 30 | $ 41 | $ 30 | $ 41 |
Residential, Junior Liens, Financing Receivable [Member] | Interest Rate Below Market Reduction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 0 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Residential, Junior Liens, Financing Receivable [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 1 | 1 | 1 | 1 |
Pre-Modification Recorded Investment | $ 30 | $ 41 | $ 30 | $ 41 |
Residential, Home Equity Line Of Credit, Financing Receivable [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 1 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 160 | $ 94 | $ 160 |
Post-Modification Recorded Investment | $ 0 | $ 160 | $ 94 | $ 160 |
Residential, Home Equity Line Of Credit, Financing Receivable [Member] | Interest Rate Below Market Reduction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 0 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 160 | $ 0 | $ 160 |
Residential, Home Equity Line Of Credit, Financing Receivable [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 0 | 1 | 0 |
Pre-Modification Recorded Investment | $ 0 | $ 0 | $ 94 | $ 0 |
Consumer Unsecured Financing Receivable [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 2 | 0 | 3 |
Pre-Modification Recorded Investment | $ 0 | $ 8 | $ 0 | $ 8 |
Post-Modification Recorded Investment | $ 0 | $ 8 | $ 0 | $ 8 |
Consumer Unsecured Financing Receivable [Member] | Interest Rate Below Market Reduction [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 0 | 2 |
Pre-Modification Recorded Investment | $ 0 | $ 5 | $ 0 | $ 5 |
Consumer Unsecured Financing Receivable [Member] | Below Market Interest Rate and Extension of Amortization Period [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 0 | 1 | 0 | 1 |
Pre-Modification Recorded Investment | $ 0 | $ 3 | $ 0 | $ 3 |
Loans and ALLL (Summary of Defa
Loans and ALLL (Summary of Defaulted TDRs) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2015USD ($)loan | Jun. 30, 2015USD ($)loan | Jun. 30, 2014loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 0 | ||
Residential, Junior Liens, Financing Receivable [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | loan | 1 | 1 | |
Pre- Default Recorded Investment | $ 39 | $ 39 | |
Charge-Off Recorded Upon Default | 39 | 39 | |
Post- Default Recorded Investment | $ 0 | $ 0 |
Loans and ALLL (Summary of TDR
Loans and ALLL (Summary of TDR loan balances) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Troubled debt restructurings | $ 20,458 | $ 23,341 |
Loans and ALLL Foreclosed Asset
Loans and ALLL Foreclosed Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | |||
Consumer mortgage loans collateralized by residential real estate foreclosed as a result of obtaining physical possession | [1] | $ 0 | |
Foreclosed Assets | 873 | $ 885 | |
Total | $ 873 | $ 885 | |
[1] | Disclosure requirement from the adoption of ASU No. 2014-04 on January 1, 2015. As such, measurement was applicable for December 31, 2014. |
Loans and ALLL (Narrative) (Det
Loans and ALLL (Narrative) (Details) $ in Thousands | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014loan | Dec. 31, 2014USD ($) |
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 | $ 19 | $ 19 | $ 0 | |
Number of Loans | loan | 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 | |||
Mortgage loans in process of foreclosure | $ 5 | |||
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 | 0.80 | |||
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 | 0.80 |
Equity Securities Without Rea47
Equity Securities Without Readily Determinable Fair Values (Equity securities without readily determinable fair values) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Equity Method And Other Investments [Abstract] | ||
FHLB Stock | $ 10,800 | $ 9,800 |
FRB Stock | 1,999 | 1,999 |
Other | 338 | 341 |
Total | 21,142 | 20,076 |
Investment in Corporate Settlement Solutions [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity method investments | 7,005 | 6,936 |
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 ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Schedule of Debt [Line Items] | |||||
Borrowed funds | $ 307,599 | $ 307,599 | $ 289,709 | ||
Borrowed funds, Rate | 1.36% | 1.36% | 1.41% | ||
Securities Sold under Agreements to Repurchase [Member] | |||||
Schedule of Debt [Line Items] | |||||
Short-term Debt, Maximum Month-end Outstanding Amount | $ 67,599 | $ 90,813 | $ 84,859 | $ 94,741 | |
Short Term Debt Weighted Average Interest Rates | 0.13% | 0.13% | 0.13% | 0.13% | |
Borrowed funds | $ 67,599 | $ 67,599 | $ 95,070 | ||
Borrowed funds, Rate | 0.12% | 0.12% | 0.14% | ||
Short-term Debt, Average Outstanding Amount | $ 63,294 | $ 90,484 | $ 71,129 | $ 92,412 | |
Federal Funds Purchased [Member] | |||||
Schedule of Debt [Line Items] | |||||
Short-term Debt, Maximum Month-end Outstanding Amount | $ 12,600 | $ 16,500 | $ 12,600 | $ 16,500 | |
Short Term Debt Weighted Average Interest Rates | 0.52% | 0.48% | 0.50% | 0.47% | |
Borrowed funds | $ 0 | $ 0 | $ 2,200 | ||
Borrowed funds, Rate | 0.00% | 0.00% | 0.50% | ||
Short-term Debt, Average Outstanding Amount | $ 5,770 | $ 6,849 | $ 5,738 | $ 6,305 | |
Federal Home Loan Bank Advances [Member] | |||||
Schedule of Debt [Line Items] | |||||
Borrowed funds | $ 240,000 | $ 240,000 | $ 192,000 | ||
Borrowed funds, Rate | 1.71% | 1.71% | 2.05% | ||
Securities Sold under Agreements to Repurchase [Member] | |||||
Schedule of Debt [Line Items] | |||||
Borrowed funds | $ 0 | $ 0 | $ 439 | ||
Borrowed funds, Rate | 0.00% | 0.00% | 3.25% |
Borrowed Funds (Maturity and we
Borrowed Funds (Maturity and weighted average interest rates of FHLB advances) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.71% | 2.05% |
FHLB advances | $ 240,000 | $ 192,000 |
Fixed Rate Due 2015 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 0.68% | 0.00% |
FHLB fixed rate advances | $ 30,000 | $ 0 |
Variable Rate Due 2015 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Floating Rate | $ 35,000 | $ 0 |
FHLB advances, rate | 0.44% | 0.00% |
Fixed Rate Advances Due 2016 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 1.34% | 0.72% |
FHLB fixed rate advances | $ 20,000 | $ 42,000 |
Variable Rate Due 2016 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Federal Home Loan Bank, Advances, Floating Rate | $ 15,000 | $ 10,000 |
FHLB advances, rate | 0.44% | 2.15% |
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 | 0.00% | 1.98% |
FHLB fixed rate advances | $ 0 | $ 10,000 |
Fixed Rate Advances Due 2021 [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
FHLB advances, rate | 2.19% | 2.26% |
FHLB fixed rate advances | $ 40,000 | $ 30,000 |
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 50
Borrowed Funds (Maturity and weighted average interest rates of Repurchase Agreements) (Details) - Repurchase Agreements, Due 2015 [Member] - Securities Sold under Agreements to Repurchase [Member] - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Repurchase agreements | $ 0 | $ 439 |
Repurchase agreements, rate | 0.00% | 3.25% |
Borrowed Funds (Short-term borr
Borrowed Funds (Short-term borrowings) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Securities Sold under Agreements to Repurchase [Member] | ||||
Short-term Debt [Line Items] | ||||
Maximum Month End Balance | $ 67,599 | $ 90,813 | $ 84,859 | $ 94,741 |
Quarter to Date Average Balance | $ 63,294 | $ 90,484 | $ 71,129 | $ 92,412 |
Weighted Average Interest Rate During the Period | 0.13% | 0.13% | 0.13% | 0.13% |
Federal Funds Purchased [Member] | ||||
Short-term Debt [Line Items] | ||||
Maximum Month End Balance | $ 12,600 | $ 16,500 | $ 12,600 | $ 16,500 |
Quarter to Date Average Balance | $ 5,770 | $ 6,849 | $ 5,738 | $ 6,305 |
Weighted Average Interest Rate During the Period | 0.52% | 0.48% | 0.50% | 0.47% |
Borrowed Funds (Pledged financi
Borrowed Funds (Pledged financial instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Pledged to secure borrowed funds | $ 344,764 | $ 324,584 |
Pledged to secure repurchase agreements | 67,661 | 94,537 |
Pledged for public deposits and for other purposes necessary or required by law | 21,278 | 19,851 |
Total | 433,703 | 438,972 |
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 67,661 | 94,537 |
State and Local Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 2,041 | 6,643 |
Mortgage Backed Securities, Other [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | 24,146 | 29,655 |
Collateralized Mortgage Obligations [Member] | ||
Short-term Debt [Line Items] | ||
AFS securities pledged without single maturity dates | $ 41,474 | $ 58,239 |
Borrowed Funds (Narrative) (Det
Borrowed Funds (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Short-term Debt [Line Items] | ||
Carrying value of securities sold under agreements to repurchase | $ 67,661 | $ 94,537 |
Fair value of securities sold under agreements to repurchase | 67,661 | $ 94,537 |
Additional borrowing capacity | $ 104,173 | |
Federal Funds Purchased [Member] | Minimum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument, term | 1 day | |
Federal Funds Purchased [Member] | Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument, term | 4 days | |
Federal Reserve Bank Advances [Member] | Minimum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument, term | 1 day | |
Federal Reserve Bank Advances [Member] | Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument, term | 4 days |
Other Noninterest Expenses (Exp
Other Noninterest Expenses (Expenses included in other noninterest expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of expenses included in other noninterest expenses | ||||
Marketing and community relations | $ 228 | $ 211 | $ 483 | $ 454 |
FDIC insurance premiums | 203 | 221 | 415 | 423 |
Directors fees | 206 | 183 | 404 | 378 |
Audit and related fees | 188 | 182 | 346 | 320 |
Education and travel | 129 | 143 | 221 | 264 |
Printing and supplies | 96 | 87 | 198 | 189 |
Postage and freight | 92 | 90 | 190 | 198 |
Legal Fees | 93 | 106 | 152 | 160 |
Loan underwriting fees | 62 | 92 | 150 | 187 |
Professional Fees, Consulting | 79 | 76 | 142 | 167 |
All other | 516 | 629 | 1,065 | 1,270 |
Total other | $ 1,892 | $ 2,020 | $ 3,766 | $ 4,010 |
Federal Income Taxes (Details)
Federal Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Federal statutory tax rate | 34.00% | 34.00% | 34.00% | 34.00% |
Income taxes at 34% statutory rate | $ 1,725 | $ 1,448 | $ 3,236 | $ 2,763 |
Interest income on tax exempt municipal securities | (510) | (503) | (1,010) | (997) |
Earnings on corporate owned life insurance policies | (66) | (64) | (130) | (127) |
Effect of tax credits | (181) | (191) | (367) | (388) |
Other | (26) | (43) | (52) | (77) |
Total effect of nontaxable income | (783) | (801) | (1,559) | (1,589) |
Effect of nondeductible expenses | 35 | 45 | 71 | 78 |
Federal income tax expense | $ 977 | $ 692 | $ 1,748 | $ 1,252 |
Fair Value (Quantitative inform
Fair Value (Quantitative information about impaired loans) (Details) - Discounted appraisal value [Member] - Level 3 [Member] - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discounted appraisal value at fair value | $ 6,133 | $ 8,720 | |
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% | 25.00% | |
Equipment [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | 25.00% | 30.00% | |
Equipment [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | 50.00% | 40.00% | |
Cash crop inventory [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | 40.00% | 40.00% | |
Loans Receivable, Collateralized By Other Inventory [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | 75.00% | ||
Loans Receivable, Collateralized By Other Inventory [Member] | Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | 50.00% | ||
Loans Receivable, Collateralized By Other Inventory [Member] | Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | 75.00% | ||
Accounts receivable [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | 50.00% | 50.00% | |
Liquor License [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair Value Inputs, Discount Rate | 75.00% | 75.00% |
Fair Value (Quantitative info57
Fair Value (Quantitative information related to foreclosed assets) (Details) - Discounted appraisal value [Member] - Level 3 [Member] - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Discounted appraisal value at fair value | $ 873 | $ 885 | |
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% | 25.00% |
Fair Value (Carrying amount and
Fair Value (Carrying amount and estimated fair value of financial instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Level 1 [Member] | |||
ASSETS | |||
Cash and cash equivalents | $ 29,641 | $ 19,326 | |
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 | 5,469 | 5,851 | |
Equity securities without readily determinable fair values | [1] | 0 | 0 |
Originated mortgage servicing rights | 0 | 0 | |
LIABILITIES | |||
Deposits without stated maturities | 654,044 | 634,222 | |
Deposits with stated maturities | 0 | 0 | |
Borrowed funds | 0 | 0 | |
Accrued interest payable | 522 | 558 | |
Level 2 [Member] | |||
ASSETS | |||
Cash and cash equivalents | 0 | 0 | |
Certificates of deposit held in other financial institutions | 339 | 579 | |
Mortgage loans AFS | 1,046 | 911 | |
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 | [1] | 0 | 0 |
Originated mortgage servicing rights | 2,499 | 2,554 | |
LIABILITIES | |||
Deposits without stated maturities | 0 | 0 | |
Deposits with stated maturities | 436,241 | 440,964 | |
Borrowed funds | 310,913 | 293,401 | |
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 | 820,828 | 827,449 | |
Less allowance for loan losses | 9,000 | 10,100 | |
Net loans | 811,828 | 817,349 | |
Accrued interest receivable | 0 | 0 | |
Equity securities without readily determinable fair values | [1] | 0 | 0 |
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 | 29,641 | 19,326 | |
Certificates of deposit held in other financial institutions | 340 | 580 | |
Mortgage loans AFS | 1,029 | 901 | |
Total loans | 828,602 | 833,582 | |
Less allowance for loan losses | 9,000 | 10,100 | |
Net loans | 819,602 | 823,482 | |
Accrued interest receivable | 5,469 | 5,851 | |
Equity securities without readily determinable fair values | [1] | 21,142 | 20,076 |
Originated mortgage servicing rights | 2,492 | 2,519 | |
LIABILITIES | |||
Deposits without stated maturities | 654,044 | 634,222 | |
Deposits with stated maturities | 436,425 | 440,262 | |
Borrowed funds | 307,599 | 289,709 | |
Accrued interest payable | 522 | 558 | |
Estimated Fair Value [Member] | |||
ASSETS | |||
Cash and cash equivalents | 29,641 | 19,326 | |
Certificates of deposit held in other financial institutions | 339 | 579 | |
Mortgage loans AFS | 1,046 | 911 | |
Total loans | 820,828 | 827,449 | |
Less allowance for loan losses | 9,000 | 10,100 | |
Net loans | 811,828 | 817,349 | |
Accrued interest receivable | 5,469 | 5,851 | |
Originated mortgage servicing rights | 2,499 | 2,554 | |
LIABILITIES | |||
Deposits without stated maturities | 654,044 | 634,222 | |
Deposits with stated maturities | 436,241 | 440,964 | |
Borrowed funds | 310,913 | 293,401 | |
Accrued interest payable | $ 522 | $ 558 | |
[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 ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
AFS Securities | |||||
AFS securities | $ 595,318 | $ 595,318 | $ 567,534 | ||
Fair value, total | 602,324 | 602,324 | 577,139 | ||
Level 1 [Member] | |||||
AFS Securities | |||||
Fair value, total | $ 3,230 | $ 3,230 | $ 6,140 | ||
Percent of assets and liabilities measured at fair value | 0.54% | 0.54% | 1.06% | ||
Level 2 [Member] | |||||
AFS Securities | |||||
Fair value, total | $ 592,088 | $ 592,088 | $ 561,394 | ||
Percent of assets and liabilities measured at fair value | 98.30% | 98.30% | 97.27% | ||
Level 3 [Member] | |||||
AFS Securities | |||||
Fair value, total | $ 7,006 | $ 7,006 | $ 9,605 | ||
Percent of assets and liabilities measured at fair value | 1.16% | 1.16% | 1.67% | ||
Recurring items [Member] | |||||
AFS Securities | |||||
AFS securities | $ 595,318 | $ 595,318 | $ 567,534 | ||
Recurring items [Member] | Government sponsored enterprises [Member] | |||||
AFS Securities | |||||
AFS securities | 24,203 | 24,203 | 24,136 | ||
Recurring items [Member] | States and political subdivisions [Member] | |||||
AFS Securities | |||||
AFS securities | 216,647 | 216,647 | 215,345 | ||
Recurring items [Member] | Auction rate money market preferred [Member] | |||||
AFS Securities | |||||
AFS securities | 2,719 | 2,719 | 2,619 | ||
Recurring items [Member] | Preferred stock [Member] | |||||
AFS Securities | |||||
AFS securities | 3,230 | 3,230 | 6,140 | ||
Recurring items [Member] | Mortgage-backed securities [Member] | |||||
AFS Securities | |||||
AFS securities | 210,194 | 210,194 | 166,926 | ||
Recurring items [Member] | Collateralized mortgage obligations [Member] | |||||
AFS Securities | |||||
AFS securities | 138,325 | 138,325 | 152,368 | ||
Recurring items [Member] | Level 1 [Member] | |||||
AFS Securities | |||||
AFS securities | 3,230 | 3,230 | 6,140 | ||
Recurring items [Member] | Level 1 [Member] | Government sponsored enterprises [Member] | |||||
AFS Securities | |||||
AFS securities | 0 | 0 | 0 | ||
Recurring items [Member] | Level 1 [Member] | States and political subdivisions [Member] | |||||
AFS Securities | |||||
AFS securities | 0 | 0 | 0 | ||
Recurring items [Member] | Level 1 [Member] | Auction rate money market preferred [Member] | |||||
AFS Securities | |||||
AFS securities | 0 | 0 | 0 | ||
Recurring items [Member] | Level 1 [Member] | Preferred stock [Member] | |||||
AFS Securities | |||||
AFS securities | 3,230 | 3,230 | 6,140 | ||
Recurring items [Member] | Level 1 [Member] | Mortgage-backed securities [Member] | |||||
AFS Securities | |||||
AFS securities | 0 | 0 | 0 | ||
Recurring items [Member] | Level 1 [Member] | Collateralized mortgage obligations [Member] | |||||
AFS Securities | |||||
AFS securities | 0 | 0 | 0 | ||
Recurring items [Member] | Level 2 [Member] | |||||
AFS Securities | |||||
AFS securities | 592,088 | 592,088 | 561,394 | ||
Recurring items [Member] | Level 2 [Member] | Government sponsored enterprises [Member] | |||||
AFS Securities | |||||
AFS securities | 24,203 | 24,203 | 24,136 | ||
Recurring items [Member] | Level 2 [Member] | States and political subdivisions [Member] | |||||
AFS Securities | |||||
AFS securities | 216,647 | 216,647 | 215,345 | ||
Recurring items [Member] | Level 2 [Member] | Auction rate money market preferred [Member] | |||||
AFS Securities | |||||
AFS securities | 2,719 | 2,719 | 2,619 | ||
Recurring items [Member] | Level 2 [Member] | Preferred stock [Member] | |||||
AFS Securities | |||||
AFS securities | 0 | 0 | 0 | ||
Recurring items [Member] | Level 2 [Member] | Mortgage-backed securities [Member] | |||||
AFS Securities | |||||
AFS securities | 210,194 | 210,194 | 166,926 | ||
Recurring items [Member] | Level 2 [Member] | Collateralized mortgage obligations [Member] | |||||
AFS Securities | |||||
AFS securities | 138,325 | 138,325 | 152,368 | ||
Recurring items [Member] | Level 3 [Member] | |||||
AFS Securities | |||||
AFS securities | 0 | 0 | 0 | ||
Recurring items [Member] | Level 3 [Member] | Government sponsored enterprises [Member] | |||||
AFS Securities | |||||
AFS securities | 0 | 0 | 0 | ||
Recurring items [Member] | Level 3 [Member] | States and political subdivisions [Member] | |||||
AFS Securities | |||||
AFS securities | 0 | 0 | 0 | ||
Recurring items [Member] | Level 3 [Member] | Auction rate money market preferred [Member] | |||||
AFS Securities | |||||
AFS securities | 0 | 0 | 0 | ||
Recurring items [Member] | Level 3 [Member] | Preferred stock [Member] | |||||
AFS Securities | |||||
AFS securities | 0 | 0 | 0 | ||
Recurring items [Member] | Level 3 [Member] | Mortgage-backed securities [Member] | |||||
AFS Securities | |||||
AFS securities | 0 | 0 | 0 | ||
Recurring items [Member] | Level 3 [Member] | Collateralized mortgage obligations [Member] | |||||
AFS Securities | |||||
AFS securities | 0 | 0 | 0 | ||
Nonrecurring items [Member] | |||||
AFS Securities | |||||
Impaired loans (net of the allowance for loan losses) | 6,133 | 6,133 | 8,720 | ||
Foreclosed assets | 873 | 873 | 885 | ||
Real Estate Owned, Unrealized Holding Gain (Loss) | (22) | $ (20) | (22) | $ (63) | |
Nonrecurring items [Member] | Level 1 [Member] | |||||
AFS Securities | |||||
Impaired loans (net of the allowance for loan losses) | 0 | 0 | 0 | ||
Foreclosed assets | 0 | 0 | 0 | ||
Nonrecurring items [Member] | Level 2 [Member] | |||||
AFS Securities | |||||
Impaired loans (net of the allowance for loan losses) | 0 | 0 | 0 | ||
Foreclosed assets | 0 | 0 | 0 | ||
Nonrecurring items [Member] | Level 3 [Member] | |||||
AFS Securities | |||||
Impaired loans (net of the allowance for loan losses) | 6,133 | 6,133 | 8,720 | ||
Foreclosed assets | $ 873 | $ 873 | $ 885 |
Fair Value (Changes in fair val
Fair Value (Changes in fair value of assets and liabilities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Real Estate Owned, Unrealized Holding Gain (Loss) | $ (22) | $ (20) | $ (22) | $ (63) |
Fair Value (Narrative) (Details
Fair Value (Narrative) (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
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 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Income (Loss) (Changes in AOCI by component) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 2,484 | $ (2,560) | $ (506) | $ (6,341) |
OCI before reclassifications | (6,520) | 4,448 | (2,164) | 9,968 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Net unrealized gains (losses) | (6,520) | 4,448 | (2,164) | 9,968 |
Tax effect | 2,165 | (1,420) | 799 | (3,159) |
Unrealized gains (losses), net of tax | (4,355) | 3,028 | (1,365) | 6,809 |
Ending Balance | (1,871) | 468 | (1,871) | 468 |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 6,292 | (426) | 3,302 | (4,207) |
OCI before reclassifications | (6,520) | 4,448 | (2,164) | 9,968 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Net unrealized gains (losses) | (6,520) | 4,448 | (2,164) | 9,968 |
Tax effect | 2,165 | (1,420) | 799 | (3,159) |
Unrealized gains (losses), net of tax | (4,355) | 3,028 | (1,365) | 6,809 |
Ending Balance | 1,937 | 2,602 | 1,937 | 2,602 |
Defined Benefit Pension Plan [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (3,808) | (2,134) | (3,808) | (2,134) |
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 | $ (3,808) | $ (2,134) | $ (3,808) | $ (2,134) |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive Income (Loss) (Components of unrealized holding gains on AFS securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,871) | $ 468 | $ (1,871) | $ 468 | $ 2,484 | $ (506) | $ (2,560) | $ (6,341) | |
Unrealized gains (losses) on AFS securities arising during the period | 4,448 | (2,164) | 9,968 | ||||||
Reclassification adjustment for net realized (gains) losses included in net income | 0 | 0 | 0 | 0 | |||||
Net unrealized gains (losses) | (6,520) | 4,448 | (2,164) | 9,968 | |||||
Tax effect | [1] | (1,420) | 799 | (3,159) | |||||
Unrealized gains (losses), net of tax | (4,355) | 3,028 | (1,365) | 6,809 | |||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (6,520) | 4,448 | (2,164) | 9,968 | |||||
Other Comprehensive Income (Loss), Tax | 2,165 | (1,420) | 799 | (3,159) | |||||
Unrealized Holding Gains (Losses) on AFS Securities [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 1,937 | 2,602 | 1,937 | 2,602 | 6,292 | 3,302 | (426) | (4,207) | |
Unrealized gains (losses) on AFS securities arising during the period | (6,520) | 4,448 | (2,164) | 9,968 | |||||
Reclassification adjustment for net realized (gains) losses included in net income | 0 | 0 | 0 | 0 | |||||
Net unrealized gains (losses) | (6,520) | 4,448 | (2,164) | 9,968 | |||||
Tax effect | 2,165 | (1,420) | 799 | (3,159) | |||||
Unrealized gains (losses), net of tax | (4,355) | 3,028 | (1,365) | 6,809 | |||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (6,520) | 4,448 | (2,164) | 9,968 | |||||
Other Comprehensive Income (Loss), Tax | 2,165 | (1,420) | 799 | (3,159) | |||||
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) on AFS securities arising during the period | 190 | 298 | 190 | 298 | |||||
Tax effect | 0 | 0 | 0 | 0 | |||||
Unrealized gains (losses), net of tax | 190 | 298 | 190 | 298 | |||||
Unrealized Holding Gains (Losses) on AFS Securities [Member] | All Other AFS Securities [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Unrealized gains (losses) on AFS securities arising during the period | (6,710) | 4,150 | (2,354) | 9,670 | |||||
Tax effect | 2,165 | (1,420) | 799 | (3,159) | |||||
Unrealized gains (losses), net of tax | (4,545) | 2,730 | (1,555) | 6,511 | |||||
Accumulated Defined Benefit Plans Adjustment [Member] | |||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (3,808) | (2,134) | (3,808) | (2,134) | $ (3,808) | $ (3,808) | $ (2,134) | $ (2,134) | |
Reclassification adjustment for net realized (gains) losses included in net income | 0 | 0 | 0 | 0 | |||||
Net unrealized gains (losses) | 0 | 0 | 0 | 0 | |||||
Unrealized gains (losses), net of tax | 0 | 0 | 0 | 0 | |||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 | 0 | 0 | |||||
Other Comprehensive Income (Loss), Tax | $ 0 | $ 0 | $ 0 | $ 0 | |||||
[1] | See “Note 11 – Accumulated Other Comprehensive Income (Loss)” for tax effect reconciliation. |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (Loss) (Reclassification adjustments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | $ 4,448 | $ (2,164) | $ 9,968 | ||
Income before federal income tax expense | $ 5,075 | 4,257 | 9,519 | 8,126 | |
Federal income tax expense | 977 | 692 | 1,748 | 1,252 | |
NET INCOME | 4,098 | 3,565 | 7,771 | 6,874 | |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | [1] | (1,420) | 799 | (3,159) | |
Other Comprehensive Income (Loss), Net of Tax | (4,355) | 3,028 | (1,365) | 6,809 | |
Unrealized Holding Gains (Losses) on AFS Securities [Member] | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | (6,520) | 4,448 | (2,164) | 9,968 | |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 2,165 | (1,420) | 799 | (3,159) | |
Other Comprehensive Income (Loss), Net of Tax | (4,355) | 3,028 | (1,365) | 6,809 | |
Available-for-sale Securities, Excluding Auction Rate Money Market Preferred and Preferred Stocks [Member] | Unrealized Holding Gains (Losses) on AFS Securities [Member] | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | (6,710) | 4,150 | (2,354) | 9,670 | |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 2,165 | (1,420) | 799 | (3,159) | |
Other Comprehensive Income (Loss), Net of Tax | (4,545) | 2,730 | (1,555) | 6,511 | |
Auction Rate Money Market Preferred and Preferred Stocks [Member] | Unrealized Holding Gains (Losses) on AFS Securities [Member] | |||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, before Tax | 190 | 298 | 190 | 298 | |
Other Comprehensive Income (Loss), Available-for-sale Securities, Tax | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | $ 190 | $ 298 | $ 190 | $ 298 | |
[1] | See “Note 11 – Accumulated Other Comprehensive Income (Loss)” for tax effect reconciliation. |
Parent Company Only Financial65
Parent Company Only Financial Information (Interim Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
ASSETS | ||||
AFS securities | $ 595,318 | $ 567,534 | ||
Premises and equipment | 26,155 | 25,881 | ||
Other assets | 16,193 | 14,632 | ||
TOTAL ASSETS | 1,586,975 | 1,549,543 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Shareholders' equity | 178,025 | 174,594 | $ 171,099 | $ 160,609 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,586,975 | 1,549,543 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash on deposit at subsidiary Bank | 3,486 | 1,035 | ||
AFS securities | 261 | 3,294 | ||
Investments in subsidiaries | 128,865 | 124,827 | ||
Premises and equipment | 2,013 | 1,982 | ||
Other assets | 52,929 | 53,228 | ||
TOTAL ASSETS | 187,554 | 184,366 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Other liabilities | 9,529 | 9,772 | ||
Shareholders' equity | 178,025 | 174,594 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 187,554 | $ 184,366 |
Parent Company Only Financial66
Parent Company Only Financial Information (Interim Condensed Statements of Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Expenses | ||||
Compensation and benefits | $ 5,374 | $ 5,385 | $ 10,799 | $ 10,871 |
Occupancy and equipment | 672 | 676 | 1,393 | 1,418 |
Audit and related fees | 188 | 182 | 346 | 320 |
Other | 1,892 | 2,020 | 3,766 | 4,010 |
Federal income tax benefit | (977) | (692) | (1,748) | (1,252) |
NET INCOME | 4,098 | 3,565 | 7,771 | 6,874 |
Parent Company [Member] | ||||
Income | ||||
Dividends from subsidiaries | 1,700 | 1,500 | 3,300 | 3,000 |
Interest income | 35 | 39 | 71 | 78 |
Management fee and other | 1,602 | 722 | 3,054 | 1,228 |
Total income | 3,337 | 2,261 | 6,425 | 4,306 |
Expenses | ||||
Compensation and benefits | 1,240 | 772 | 2,430 | 1,604 |
Occupancy and equipment | 401 | 107 | 811 | 221 |
Audit and related fees | 114 | 98 | 215 | 169 |
Other | 539 | 298 | 1,032 | 566 |
Total expenses | 2,294 | 1,275 | 4,488 | 2,560 |
Income before income tax benefit and equity in undistributed earnings of subsidiaries | 1,043 | 986 | 1,937 | 1,746 |
Federal income tax benefit | 224 | 178 | 465 | 432 |
Income before equity in undistributed earnings of subsidiaries | 1,267 | 1,164 | 2,402 | 2,178 |
Undistributed earnings of subsidiaries | 2,831 | 2,401 | 5,369 | 4,696 |
NET INCOME | $ 4,098 | $ 3,565 | $ 7,771 | $ 6,874 |
Parent Company Only Financial67
Parent Company Only Financial Information (Interim Condensed Statements of Cash Flows) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities | ||||
Net income | $ 4,098,000 | $ 3,565,000 | $ 7,771,000 | $ 6,874,000 |
Adjustments to reconcile net income to cash provided by operations | ||||
Share-based payment awards | 259,000 | 237,000 | ||
Depreciation | 1,272,000 | 1,242,000 | ||
Net amortization of AFS securities | 986,000 | 920,000 | ||
Changes in operating assets and liabilities which used cash | ||||
Other assets | (2,026,000) | 270,000 | ||
Accrued interest and other liabilities | 126,000 | 1,215,000 | ||
Net cash provided by (used in) operating activities | 7,283,000 | 11,002,000 | ||
Investing activities | ||||
Purchases of equipment and premises | (1,546,000) | (1,224,000) | ||
Net cash provided by (used in) investing activities | (27,609,000) | (39,043,000) | ||
Financing activities | ||||
Net increase (decrease) in other borrowed funds | 17,890,000 | 131,000 | ||
Cash dividends paid on common stock | (3,557,000) | (3,394,000) | ||
Proceeds from the issuance of common stock | 2,192,000 | 1,778,000 | ||
Common stock repurchased | (1,704,000) | (1,648,000) | ||
Common stock purchased for deferred compensation obligations | (165,000) | (166,000) | ||
Net cash provided by (used in) financing activities | 30,641,000 | 13,863,000 | ||
Increase (decrease) in cash and cash equivalents | 10,315,000 | (14,178,000) | ||
Cash and cash equivalents at beginning of period | 19,326,000 | 41,558,000 | ||
Cash and cash equivalents at end of period | 29,641,000 | 27,380,000 | 29,641,000 | 27,380,000 |
Parent Company [Member] | ||||
Operating activities | ||||
Net income | 4,098,000 | 3,565,000 | 7,771,000 | 6,874,000 |
Adjustments to reconcile net income to cash provided by operations | ||||
Undistributed earnings of subsidiaries | (5,369,000) | (4,696,000) | ||
Undistributed earnings of equity securities without readily determinable fair values | (65,000) | (10,000) | ||
Share-based payment awards | 259,000 | 237,000 | ||
Depreciation | 74,000 | 65,000 | ||
Net amortization of AFS securities | 0 | 2,000 | ||
Changes in operating assets and liabilities which used cash | ||||
Other assets | 364,000 | (40,000) | ||
Accrued interest and other liabilities | (33,000) | 836,000 | ||
Net cash provided by (used in) operating activities | 3,001,000 | 3,268,000 | ||
Investing activities | ||||
Proceeds from Sale and Maturity of Available-for-sale Securities | 3,000,000 | 0 | ||
Purchases of equipment and premises | (105,000) | (6,000) | ||
Net cash provided by (used in) investing activities | 2,895,000 | (6,000) | ||
Financing activities | ||||
Net increase (decrease) in other borrowed funds | (211,000) | 600,000 | ||
Cash dividends paid on common stock | (3,557,000) | (3,394,000) | ||
Proceeds from the issuance of common stock | 2,192,000 | 1,778,000 | ||
Common stock repurchased | (1,704,000) | (1,648,000) | ||
Common stock purchased for deferred compensation obligations | (165,000) | (166,000) | ||
Net cash provided by (used in) financing activities | (3,445,000) | (2,830,000) | ||
Increase (decrease) in cash and cash equivalents | 2,451,000 | 432,000 | ||
Cash and cash equivalents at beginning of period | 1,035,000 | 529,000 | ||
Cash and cash equivalents at end of period | $ 3,486,000 | $ 961,000 | $ 3,486,000 | $ 961,000 |
Operating Segments (Narrative)
Operating Segments (Narrative) (Details) | Jun. 30, 2015 | Jun. 30, 2014 |
Segment Reporting [Abstract] | ||
Percentage of reportable segments total assets and operating results, or more | 90.00% | 90.00% |